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TSX : OMG Annual Meeting of Shareholders On February 10, 2012 1

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Annual Meeting of Shareholders. On February 10, 2012. 1. Forward-Looking Statement. - PowerPoint PPT Presentation

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Page 1: Annual Meeting  of  Shareholders

TSX :OMG

Annual Meeting of ShareholdersOn February 10, 2012

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Page 2: Annual Meeting  of  Shareholders

Forward-Looking Statement

Certain statements included in this PowerPoint presentation constitute “forward looking” statements, including those identified by the expressions “will”, “continue”, “predict”, “may”, “would”, “could” “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions, to the extent they relate to OPMEDIC Group Inc. (“OPMEDIC” or the “Corporation”) or its Management. The forward looking statements are not historical facts but reflect Management’s current expectations regarding future results or events. These forward looking statements are subject to a number of assumptions, risks, uncertainties and other factors, such as business and economic conditions; market competition; changes in government regulations; the ability of the Corporation to secure and maintain all required licenses, permits and certifications to provide its services in the jurisdictions where the Corporation is currently doing business or intends to do business in the implementation of its business plan; risk associated with third-party service providers; the ability for the Corporation to establish and develop new relationships and to build on existing relationships with clients; the ability of the Corporation to recruit and retain the services of its key personnel; the ability of the Corporation to obtain additional financing on reasonable terms or at all; and the ability of the Corporation to market its services, that could cause actual results, performance, achievements, industry results or events to differ materially from current expectations.

These forward looking statements are made as of the date of this PowerPoint presentation and OPMEDIC does not intend, and does not assume any obligation, to update or revise them to reflect new events or circumstances, unless otherwise required by law. Prospective investors are cautioned not to place undue reliance on forward looking statements.

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Page 3: Annual Meeting  of  Shareholders

Investment Highlights

Leading provider of professional services and facilities in the healthcare industry, with a focus on fertility, genetic, endoscopic and surgical services

Strong macro trends and positive fiscal & regulatory environment

Well-positioned in a fragmented industry offering growth and acquisition opportunities

Solid financial performance, stable & recurring revenues with strong margins and cash flows generation

Experienced management team with aligned interests and a proven track-record of execution

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Page 4: Annual Meeting  of  Shareholders

OverviewOPMEDIC is a provider of a wide range of professional fertility and genetic services, sperm banking services and surgical and endoscopic services and facilities for patients and surgeons

LTM Stock Price Performance

Corporate Profile

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Page 5: Annual Meeting  of  Shareholders

Corporate Profile

Capital Markets Highlights

Financial Highlights (August 31, 2011)

Revenue $22.3MGross Profit $13.3MGross Margin 59.5%EBITDA $8.9MEBITDA Margin 40.1%Net Income $5.4MNet Margin 24.0%EPS $0.312008-2011 Revenue CAGR 24.7%2008-2011 EBITDA CAGR 43.6%2008-2011 Net Income CAGR 60.8%Cash $9.9MBonds $1.3MTotal Debt $2.9M

Share Price (February 8, 2012) $3.80

Shares Outstanding 17.3M

Market Capitalization $65.6M

Enterprise Value $58.6M

EV/EBITDA 6.6x

P/E 12.3x

Dividend Yield 2.6%

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Page 6: Annual Meeting  of  Shareholders

Organization

OPMEDIC

Surgical Facilities and Services

PROCREA Clinics

Fertility ClinicsDiagnostic Lab, Prenatal

Screening, Fetal Ultrasound

PROCREA Cryopreservation

Center

Sperm Banking

Surgical and endoscopic services and facilities

One site for surgery, three sites for endoscopy(Laval, Quebec city and South Shore of Montreal)

Fertility treatments, laboratory analysis, imaging and diagnostic proceduresTwo sites and three satellites in QuebecOne site opened in in Toronto in 2011in Toronto in 2011

Donor sperm banking and sperm preservation services

One of the larger donor sperm banks in Canada

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Page 7: Annual Meeting  of  Shareholders

Management and Board of Directors

Solid Board of Directors and management team with significant experiencein the healthcare industry

Name Position with OPMEDIC Group Principal occupation / Experience

Dr. Pierre St-Michel Director, President and CEOFounder

Extensive experience in both medicine and corporate management, Medical Director of the ART Medical Board Canadian Fertility and Andrology Society, former Chief of Surgery at Hôpital Fleury in Montreal

Jean-Marc Lachance CFO Over a decade of experience in financial management, former administrative director of the Quebec Order of Pharmacists

Dr. Marc Villeneuve Director, Medical Director Founder

Nearly 20 years of experience in Obstetrics, Gynaecology, and Reproductive Endocrinology

Jacques Landreville Chairman of the Board Director of Colabor Group Inc., GLV Inc., Lassonde Industries Inc., and Camoplast Solideal Inc.

Hani Basile Director (Chairman Audit Committee)

President, Juvenile Group of Dorel Industries Inc.

Jean Larivée Director (Chairman Governance Committee)

Chairman of Ballater Capital Inc.

Ken Newport Director (Chairman HR & Compensation Committee)

Entrepreneur and life sciences business executive, director of Nordion Inc.

Jacques Lemieux Corporate Secretary Partner at the law firm Norton Rose Canada LLP

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Page 8: Annual Meeting  of  Shareholders

Business Strategy & Objectives

Build on our current platform to consolidate our position as a leading provider of fertility and genetic services in Québec

Expand our presence in the fields of endoscopic and surgical services and consider new segments of the healthcare industry

Enter new geographic markets, organically and through accretive acquisitions

Leverage the scope, scale and reputation of our existing operations to broaden our presence in the Canadian healthcare industry

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Page 9: Annual Meeting  of  Shareholders

OPMEDIC Group

Services Offering

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Page 10: Annual Meeting  of  Shareholders

PROCREA - Fertility

MissionHelp individuals conceive children using leading-edge biotechnology.Assist in the diagnosis, treatment and prevention of diseases related to reproductive medicine.

Services Offering In vitro fertilization Diagnostic laboratory services Prenatal screening Foetal ultrasounds

Solid reputation and track-record as a provider of fertility treatments & services

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Page 11: Annual Meeting  of  Shareholders

PROCREA - Fertility

One of the largest fertility service providers in Canada.

Two locations in the Province of Quebec: Montreal & Quebec City

One newly opened location in Toronto (Vaughan)

Medical team has increased to : 13 gynaecologists2 endocrinologists3 urologists

Three satellites location in the Province of Quebec: Sherbrooke, Chicoutimi and South Shore of Montreal

Regional platform providing sound basis for expansion in new markets, organically and through accretive acquisitions

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Page 12: Annual Meeting  of  Shareholders

Regulatory Catalyst

BILL 26 – NEW LEGISLATION IN FORCE SINCE AUGUST 5TH, 2010

Quebec Health Insurance Board pays for three in-vitro fertilization treatments Reimbursement for IVF as decreased from $6,975 to $4,600 in January 2012.Increased reimbursement for Frozen Embryos Transfers (FET) with significant increase in volume.All other covered services are paid the same amount.

Quebec government estimates that the number of IVF cycles done in Quebec could increase between 8000 and 10,000 cycles by 2014Approximately 4,800 IVF cycles were performed in Quebec last year.

OPMEDIC currently performs over 30% of all IVF cycles in QuebecCurrently, OPMEDIC has the capacity to increase the number of its IVF treatments.The company has virtually no private competition in Quebec outside the Montreal area.Competition from public hospitals to come.

Well positioned to capitalize on Quebec’s new legislation relating to fertility treatments

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Page 13: Annual Meeting  of  Shareholders

OPMEDIC - Surgery

MissionProvide surgeons in private practice with access to state-of-the-art surgical facilities and related services.Enable timely access to elective surgical procedures for patients.

Services Offering General surgery Plastic surgery Gynaecology Head and neck surgery

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Page 14: Annual Meeting  of  Shareholders

OPMEDIC - Endoscopy

MissionProvide patients with diagnostic and operative endoscopic procedures

Quebec CityOpened June 20081 operating room, 3 surgeons, 4 gastroenterologists

Endoscopic Center Laval Opened January 20082 operating rooms, 6 surgeons, 2 gastroenterologists

South Shore of Montreal Opened October 20113 operating rooms, 6 surgeons, 4 gastroenterologists

Quebec’s new prevention policy in colo-rectal cancerShould increase the demandDiscussions by the RAMQ to cover the ancillary costs

New Quebec government prevention policy is expected to increase the demand

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Page 15: Annual Meeting  of  Shareholders

PROCREA Cryopreservation Center

MissionOffer short and long term sperm storage services.Support fertility operations through sperm auto preservation & sperm donation.Eventually offer ovocyte banking for donor cycles.

Services Offering Donor sperm banking

(Samples distributed to major fertility clinics throughout Quebec)

Sperm preservation services for short or long periods of time for men undergoing certain medical treatments (chemotherapy, radiotherapy or surgery)

One of the larger donor sperm banks in Canada

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Page 16: Annual Meeting  of  Shareholders

Selected Financial Information

OPMEDIC Group

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Page 17: Annual Meeting  of  Shareholders

Summary Balance Sheet

Strong balance sheet - well positioned to fund organic growth and take advantage of strategic acquisition opportunities

As of August 31, 2011, OPMEDIC had a cash of $9.9 million (57¢/share), total debt of $2.6 million and bond investments of $1.3 million

In $000s, Canadian GAAP FY 201131-August-2011

FY 201031-August-2010

Cash $9,898 38% $6,581 36%

Current Assets $12,650 49% $8,052 44%

Total Assets $26,049 100% $18,135 100%

Current Liabilities $4,996 19% $2,516 14%

Long-Term Debt $2,630 10% $1,381 8%

Shareholders' Equity $18,232 70% $14,015 77%

Total Liabilities & Shareholder’s Equity $26,049 100% $18,135 100%

Working Capital $7,654 $5,536

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Page 18: Annual Meeting  of  Shareholders

Income Statement Highlights

Solid performance 2011YTD, as we register the impact of the new government policy

Significant ramp up in 2011 revenues and significant improvement in margins

In $000s (except EPS), Canadian GAAP

FY 201131-August-2011

FY 201031-August-2010

Revenue ∆↑ 55% 22,297 14,348Gross Profit 13,267 7,932

Gross Margin - % 60% 55%

EBITDA ∆↑ 123% 8,933 3,999EBITDA Margin - % 40% 28%

Net Income ∆↑ 185% 5,355 1,877

Net Margin - % 24% 13%

EPS (Basic and Diluted) $0.31 $0.11Dividend per Share $0.085 $0.05

Return on assets 24% 12%

Return on equity 33% 15%

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Page 19: Annual Meeting  of  Shareholders

Revenue by division

2011 YTD Revenues 2010 YTD Revenues

Enhanced stability of operations through diversification of its revenues

Fertiliy Surgeries

Labs, Ultrasounds & Prenatal Cryopreservation

Fertiliy Surgeries

Labs, Ultrasounds & Prenatal Cryopreservation

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Page 20: Annual Meeting  of  Shareholders

2008 2009 2010 2011 $ -

$ 5.0

$ 10.0

$ 15.0

$ 20.0

$ 25.0

$ 1.3 $ 1.7 $ 1.9

$ 5.4

$ 3.0 $ 3.7 $ 4.0

$ 8.9

$11.5

$13.4 $14.3

$22.3

Net Income EBITDA Revenue

Historical Performance

Strong growth in revenue, EBITDA and net income

2008-2011 Revenue CAGR = 24.7%

2008-2011EBITDA CAGR = 43.6%

2008-2011Net Income CAGR = 60.8%

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Page 21: Annual Meeting  of  Shareholders

YoY Margin Improvement

Strong operating leverage resulting in significant improvements in operating margins

2008 2009 2010 20110%

10%

20%

30%

40%

50%

60%

70%

11%13% 13%

24%

26%28% 28%

40%

Gross Margin - % EBITDA Margin - % Net Income Margin - %

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Page 22: Annual Meeting  of  Shareholders

First Quarter Highlights

Good performance, even if Quebec clinic didn’t have any IVF for two months

In $000s (except EPS), Canadian GAAP

Q1 201130-Novembre-2011

Q1 201030-Novembre-2010

Revenue 5,390 5,443

Gross Profit 3,232 3,413

Gross Margin - % 60% 63%

EBITDA 2,127 2,346

EBITDA Margin - % 39% 43%

Net Income 1,247 1,397

Net Margin - % 23% 26%

EPS (Basic and Diluted) $0.07 $0.08

Dividend per Share $0.025 $0.01

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Page 23: Annual Meeting  of  Shareholders

Financial Markets Highlights

Share Price (February 8, 2012) $3.80

Shares Outstanding 17.3M

Market Capitalization $65.6M

Enterprise Value $58.6M

EV/EBITDA 6.6x

P/E 12.3x

Dividend Yield 2.6%

Major Shareholders (% of Basic Shares Outstanding):Two principal shareholders (physicians) 57.4%

Other officers & directors 0.5%

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Page 24: Annual Meeting  of  Shareholders

TSX :OMG

17,274,867 shares outstanding36,919 options outstanding

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