HEALTHCARE Investor Presentation May 2016 Safe Harbor Some of the statements made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might, “will,” “should,” “could” or the negative thereof. Generally, the words “anticipate,” “believe,” “continues,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained in this are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forwardlooking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. Additional risks and uncertainties are described more fully in “Risk Factors” in the prospectus supplement and in our periodic reports and other filings with the Securities and Exchange Commission incorporated by reference therein. These forwardlooking statements are made only as of the date of this presentation. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments. 1 Use of Non-GAAP Financial Measures We have included certain financial measures in this presentation, including EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma adjusted EBITDA, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the SEC. We define EBITDA as net income adjusted for loss from discontinued operations, net of income taxes, net interest expense, income tax provision (benefit) and depreciation and amortization. We define Pro Forma EBITDA as pro forma net income adjusted for loss from discontinued operations, net of income taxes, net interest expense, income tax provision (benefit) and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for equity-based compensation expense, cost savings synergies, debt extinguishment costs and certain other items. We define Pro Forma Adjusted EBITDA as Pro Forma EBITDA adjusted for equity-based compensation expense, cost savings synergies, debt extinguishment costs and certain other items. EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma Adjusted EBITDA, as presented in this presentation, are supplemental measures of our performance and are not required by, or presented in accordance with, GAAP. EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma Adjusted EBITDA are not measures of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as measures of our liquidity. Our measurements of EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma Adjusted EBITDA may not be calculated similarly to, and therefore may not be comparable to, similarly titled measures of other companies and are not measures of performance calculated in accordance with GAAP. We have included information concerning EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma Adjusted EBITDA in this presentation because we believe that such information is used by certain investors as measures of a company’s historical performance and by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present EBITDA and adjusted EBITDA when reporting their results. Our presentation of EBITDA, Adjusted EBITDA, Pro forma EBITDA and Pro Forma Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. We also have included in this presentation certain non-IFRS measures used historically by Priory, including EBITDA, Adjusted EBITDA, EBITDAR, and Adjusted EBITDAR, which are not required by, or presented in accordance with IFRS. Priory defines (a) EBITDA as operating profit (which does not include interest or taxes) before depreciation of tangible fixed assets and amortization, (b) “EBITDAR” as EBITDA before rent expense, (c) “Adjusted EBITDA” as EBITDA as adjusted to remove the effects of certain exceptional items as described in the notes to Priory’s consolidated financial statements incorporated by reference into the prospectus supplement referred to above and (d) “Adjusted EBITDAR” as EBITDAR as adjusted to remove the effects of certain exceptional items as described in the notes to Priory’s consolidated financial statements incorporated by reference into the prospectus supplement referred to above. Priory has presented Adjusted EBITDA as a useful indicator of its ability to incur and service its indebtedness and to assist certain investors, security analysts and other interested parties in evaluating the company. EBITDAR is a common measure in Priory’s industry because it allows comparability across the sector for operations regardless of whether a business leases or owns its properties. Adjusted EBITDA and Adjusted EBITDAR are believed to be relevant measures for assessing performance because they are adjusted for certain items which are not indicative of underlying operating performance and thus aid in an understanding of EBITDA and EBITDAR, respectively. EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR and similar measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR have limitations as analytical tools, and you should not consider them in isolation. Some of these limitations include (a) they do not reflect cash expenditures or future requirements for capital expenditures or contractual commitments; (b) they do not reflect changes in, or cash requirements for, working capital needs; (c) they do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on debts; (d) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future and EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR do not reflect any cash requirements that would be required for such replacements; (d) some of the exceptional items that Priory eliminates in calculating EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR reflect cash payments that were made, or will in the future be made; and (e) the fact that other companies in Priory’s industry may calculate EBITDA, EBITDAR, Adjusted EBITDA and Adjusted EBITDAR differently than Priory does, which limits their usefulness as comparative measures. For a reconciliation of these non-GAAP and non-IFRS metrics to their most comparable GAAP or IFRS metric, please see the Appendix. 2 Key Investment Highlights Premier Pure Play Behavioral Health Service Provider – Leading Platforms in Both the U.S. and the U.K. Large Addressable Market with Attractive Underlying Industry Tailwinds – $27bn U.S. Market and $21bn U.K. Market Strong Growth and Diversification Through a Series of Transformational Acquisitions Management Team with Track Record of Creating Shareholder Value – Strong Operators and Skilled Acquirors Multiple Levers to Support Sustainable, Long-term Growth – 10% Annual Organic Revenue Growth and 70% Revenue CAGR Over Last 5 Years Business Mix Well Diversified by Geography, Service and Payor Strong Financial Performance and Cash Flow Dynamics – EBITDA and EPS CAGR of 84% and 70%, respectively, from 2011-2015 3 Premier Pure Play Behavioral Health Service Provider 1 Acadia Overview Financial Highlights Acadia is a leading provider of inpatient and outpatient behavioral health services established in 2005 to acquire, develop and operate behavioral healthcare facilities PF LTM 3/31/16 Revenue(1): $2.9 billion PF LTM 3/31/16 Adj. EBITDA(1): $671 million In February 2011, five members of the former Psychiatric Solutions senior management team joined Acadia to build the pre-eminent behavioral healthcare company M&A strategy has created significant momentum, with 585 locations and 17,100+ beds in U.S., Puerto Rico and UK (1) Acquisition Spend Since 2011(1): $5.3 billion Market Cap(2): $5.2 billion Comprehensive Continuum of Behavioral Healthcare U.S. Geographic Footprint Acute Inpatient PTSD / Trauma Services Residential Recovery Eating Disorder CTCs Existing Facilities Headquarters AmiCare Facilities Outpatient Community Services Greenleaf Delta Medical Center Longleaf McCallum Skyway House San Juan Capestrano Hospital Cascade Pacific Grove QAM CRC Health North Tampa (1) (2) Puerto Rico BCA Facilities Youth Services The Refuge Pro forma for the acquisition of CRC, QAM, Choice Lifestyles, Pastoral, Mildmay Oaks, Care UK, Manor Clinic, Belmont, Danshell, H&SCP, Manor Hall, Meadow View, Duffy’s, Discovery House, MMO and Priory. Market cap based on stock price of $60.00 and basic share count of 87.4 million shares outstanding after the Priory acquisition. 4 Duffy’s MMO Belmont Discovery House 1 Premier Pure Play Behavioral Health Service Provider U.K. Geographic Footprint Leading Platform in the U.K. Clear market leader: #1 independent provider by revenue ($1.3 billion), locations (380) and number of beds (~9,400)  Comprehensive service offering with leading positions in all areas of behavioral health, in both adults and children, and across the entire care pathway  Attractive geographic footprint: nationwide coverage offering specialist centers of excellence in local markets  Excellent clinical outcomes reinforcing premium brand reputation Comprehensive Continuum of Care  Success of PiC Acquisition Validates U.K. Investment Thesis and Serves as a Roadmap for Priory Transaction Healthcare Forensic Rehab & Recovery Acute Adult Care Supported Living Learning Disabilities Adult Autism Mental Health Eating Disorder Education & Children’s Services SEMH Schools Autism Schools Adult Colleges Residential Care PiC locations Healthcare Adult Care Elderly Care Education & Children’s Services Elderly Care 5 1 Highly Strategic Transaction with Positive Financial Impact Combines leading pure play behavioral companies in the U.S. and U.K. The U.K. is a dynamic market for behavioral healthcare with positive macro trends as evidenced by the performance of our PiC investment and Priory’s historical performance Positions Acadia as a clear market leader in the U.K. in terms of scale, reputation and services Highly accretive to 2016 earnings Continues to diversify the company’s revenue while maintaining pure play behavioral focus Numerous levers for organic growth opportunities given combined company’s broad geographic footprint and leading service offerings across the complete continuum of care 6 1 Priory Transaction Overview ■ Aggregate consideration of approximately $2.2 billion Transaction ■ Represents 10.3x Priory’s 2015 estimated adjusted EBITDA of $216 million (includes $20mm of estimated cost synergies) ■ Funded with cash and Acadia common stock Consideration ■ Acadia option to increase cash component ■ Operational overlap creates significant cost savings opportunities Synergies ■ Initially identified at least $20 million of annual cost synergies to be realized within two years ■ Potential upside from revenue synergies given increased scale and complementary platforms in the United Kingdom ■ Accretive to 2016 Adjusted EPS Financial Impact ■ Enhances Acadia’s revenue and adjusted EBITDA growth profile ■ Further diversifies revenue and payor mix ■ Combination of equity and debt financing Financing ■ Committed debt financing from Bank of America and Jefferies up to ~5.5x pro forma leverage ■ 4.034 million shares of Acadia common stock to Advent Closed ■ February 16, 2016 7 1 Priory is a Market Leading Independent Provider of Behavioral Health in the U.K. Priory Overview ■ Priory is a leading independent provider of behavioral health in the United Kingdom ■ ■ ■ ■ ■ Priory’s nationwide coverage allows the Company to offer specialist centers of excellence in local markets ■ Commissioners favor placing service users close to their local communities Priory provides behavioral health services through four business segments: (i) Healthcare; (ii) Education & Children’s Services; (iii) Adult Care; and (iv) Elderly Care Healthcare (46) Founded in 1980, Priory is the most recognized behavioral health “brand” in the United Kingdom Education & Children’s Services (68) Market position underpinned by leading quality assurance and governance functions Elderly Care (41) ■ ■ As of February 16, 2016, Priory operates ~7,100 beds across 324 facilities Geographic Locations by Segment Adult Care (167) Allows Priory to deliver high levels of patient and payor satisfaction with national recognition for service excellence Treats over 23,000 service users per year, funded by over 400 NHS and Local Authority Commissioners with a leading private pay business ■ Well-invested real estate portfolio with approximately 80% owned properties ■ Priory generated LTM 9/30/15 revenue of $865 million and adjusted EBITDA of $196 million (22.7% margin) Key Statistics # of Employees at 12/31/15 ~16,000 # of Service Users Treated in 2014 ~23,000 # of National Health Service Commissioners in 2015 262 # of Local Authority Commissioners in 2015 191 8 2 Large Addressable Market with Attractive Underlying Industry Tailwinds  $16bn U.S. Acute Behavioral Health Hospital Market (1)      $21bn U.K. Mental Health Market (3)   Acute behavioral health hospital market estimated to grow U.S. Acute Behavioral Health Hospital Market (1) to $18.4bn by 2020 (1) ($ in billions) $18.4  18.5% of Americans aged 18 and older suffer from $17.7 $17.2 diagnosable mental disorders and ~4% suffer from $16.5 $16.8 (2) $16.2 a serious mental illness $15.9  Market is poised for growth due to increased awareness of mental health illnesses and treatment acceptance Stable pricing and inpatient ALOS combined with increased admissions and occupancy trends Significant barriers to entry due to high degree of specialization and regulation `14E `15E `16E `17E `18E `19E `20E Highly fragmented industry provides compelling consolidation opportunity NHS Bed Capacity (3) Large addressable market: ~8.7 million people currently (3) (thousands of beds) have mental healthcare disorders in the U.K. NHS has 70% share of total mental health hospital beds 29 29 vs. 30% for independent providers (3) 28 28 The independent provider market has grown significantly as a result of NHS reducing bed capacity and increased hospitalization rates  Outsourcing demand is expected to continue to increase given additional bed closures and NHS lacking capital to address specific local demand patterns Significant consolidation opportunity exists as independent market is highly fragmented, with the largest four players `04 `05 `06 `07 accounting for ~58% market share __________________ (1) SAMHSA – “Projections of National Expenditures for Treatment of Mental and Substance Use Disorders” – 2014. (2) SAMHSA – “Results from the 2013 National Survey on Drug Use and Health: Mental Health Findings” – 2014. (3) Laing & Buisson 2013 Market Report. 9 -24% 27 26 25 24 22 `08 `09 `10 `11 `12 Large Addressable Market with Attractive Underlying Industry Tailwinds 2 Nearly 2.4 million People are Dependent on Opioids in the U.S. (2) $11bn U.S. Substance Abuse Centers Market (1) ($ in billions) $16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 $8 $9 $9 $9 Heroin 21% $13 $14 $12 $13 $12 $11 $10 $11 Painkillers 79% '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Heroin Use Growing > 15% Annually Since 2007, Amongst Persons Aged 12 or Older (2) Substantial Current Need for Treatment (2) Received Treatment at Specialty Facility (2.5mm) 10.9% 22.7mm People Need Substance Abuse Treatment as of 2013 (In Thousands of Users in Past Month) 400 335 300 No Specialty Facility Treatment Received (20.2mm) 89.1% 200 161 100 0 2007 Roughly 100 Americans Die Each Day Due to Drug Overdoses, Surpassing Car Accidents as the #1 Cause of Accidental Deaths (3) 2012 “It’s clear that opiate addiction is an urgent – and growing – public health crisis.” __________________ (1) SAMHSA – “Projections of National Expenditures for Treatment of Mental and Substance Use Disorders” – 2014. (2) SAMHSA – “Results from the 2013 National Survey on Drug Use and Health: Summary of National Findings” – 2014. (3) National Center for Health Statistics, 2010. 10 U.S. Attorney General Eric Holder March 10, 2014 Large Addressable Market with Attractive Underlying Industry Tailwinds 2 The Mental Health Parity and Addiction Equity Act of 2008 provides for equal coverage between mental health services and physical medical health services Reform is expected to provide 25 million previously uninsured Americans with insurance, including low-income, single, childless adults           Forbids employers and insurers from placing stricter limits on mental healthcare compared to other health conditions for group plans of 51 employees or more Affordable Care Act   Provides incentives and requirements for employers to provide comparable coverage for mental health and physical health Mental Health Parity   Projected to affect more than 113 million Americans Promotes positive awareness of mental health issues and environment Enables most people who are now uninsured to get insurance through an insurance exchange, which may result in healthcare coverage for more than 90% of Americans Significantly expands options for affordable coverage through Medicaid expansion Healthcare Exchanges will be subject to the Mental Health Parity, resulting in more individuals having comparable coverage for mental health and physical health Legislative Tailwinds in the U.S. Expected to Further Increase Demand for Behavioral Health Services 11 Strong Growth and Diversification Through a Series of Transformational Acquisitions 3 Pro Forma FY 2011 (1) Pro Forma LTM 12/31/15 (2) Bed Mix Adult care 10% Education & Children's Services 9% Elderly Care 13% Specialty 16% U.K. Healthcare 22% ~17,400 Beds ~9,900 Beds 29 258 585 $333 $1,976 $2,893 ($ in mm) Adjusted EBITDA ($ in mm) / Margin Specialty 27% Acute 19% ~1,970 Beds Revenue $54 / 16.2% Self-Pay / Other 5% $671 / 23.2% $453 / 23.0% Medicare 8% NHS 21% Comm‘l 20% Payor Mix Self-Pay/Other 12% Medicare 11% Self-Pay/Other 11% NHS /Local Authorities revenue diversified across 450+ commissioners Medicare 8% NHS/Local Authorities 40% Comm‘l 17% Medicaid 33% Medicaid 67% (1) (2) Acute 31% U.K. 22% RTC / Other 73% # of Facilities Geographic Footprint RTC 11% RTC 20% Acute 27% Pro Forma for Priory LTM 3/31/16 Comm‘l 23% 18 U.S. States 39 U.S. states, Puerto Rico + England, Wales, Scotland Medicaid 24% 39 U.S. states, Puerto Rico + England, Wales, Scotland Pro forma Acadia, YFCS and PHC. Pro forma for the acquisition of CRC, QAM, Choice Lifestyles, Pastoral, Mildmay Oaks, Care UK, Manor Clinic, Belmont, Danshell, H&SCP, Manor Hall, Meadow View, Duffy’s, Discovery House, and MMO. 12 4 Management Team with Track Record of Creating Shareholder Value – Strong Operators and Skilled Acquirors Industry Leading Management Team Joey Jacobs Chairman & CEO Years in Industry: 41 Brent Turner President Years in Industry: 20 VP Clinical Services Ron Fincher COO Years in Industry: 30 Division I Division II David Duckworth CFO Years in Industry: 14 Division III Chris Howard EVP, General Counsel Years in Industry: 13 Division IV 13 Division V Steve Davidson Chief Development Officer Years in Industry: 33 PiC Residential Recovery Bruce Shear Executive Vice Chairman Years in Industry: 36 CTCs 4 Management Team with Track Record of Creating Shareholder Value – Strong Operators and Skilled Acquirors Proven History of Successfully Acquiring, Integrating and Operating Behavioral Health Businesses          CRC Health Group 2 facilities from Choice Lifestyles Mildmay Oaks 1 facility from Choice Lifestyles The Manor Clinic 2 UK facilities from H&SCP Meadow View Duffy’s MMO Behavioral Health         Quality Addiction Management Pastoral Care Group Care UK Belmont 3 UK facilities from the Danshell Group Manor Hall, the Centre for Trauma Cleveland House 19 facilities from Discovery House  Greenleaf Center  3 facilities from Haven Behavioral Health  Timberline Knolls  Park Royal Hospital  AmiCare  YFCS  Delta Medical Center  Pacific Grove  San Juan Capestrano Hospital  Partnerships in Care  North Tampa Behavioral  Skyway House  The Refuge  Croxton  McCallum Place  Longleaf Behavioral 2016  Cascade Behavioral  BCA  PHC 2015 2014 2013 2012 579 facilities and 17,000 beds added from 2010 -2016YTD 2011 2010 # of Facilities # of Beds 6 29 42 51 78 258 585 400 1,970 3,100 4,200 5,800 9,900 17,400 14 5 Multiple Levers to Support Sustainable, Long-term Growth A    B    C   D     Growth supported by positive secular demand trends, market share gains, stable pricing and inpatient average length of stay Consistent track record of same facility revenue growth (~8% average over the last four quarters) Increase occupancy of existing beds and increasing mix of higher margin services Expanding bed count at existing facilities to meet demand – significantly cash flow accretive Opportunity from conversion of residential treatment center beds to acute beds Added over 2,000 beds since 2011 Improve profitability at underperforming facilities by addressing capital constraints and improving management systems Advantages of scale drive savings in group purchasing, benefits and risk management Significant acquisition growth runway exists given industry fragmentation and attractive valuations Proven strategy to identify, acquire, integrate and improve facility operations Solidifies existing market share and enables entry into new markets Historically accretive to earnings 15 Same Facility Revenue Growth Bed Expansions and Conversions Margin Opportunity Targeted Acquisition Pipeline Multiple Levers to Support Sustainable, Long-term Growth 5 A B Same Facility Revenue Growth Average of 8.3% 15.0% 2,000 beds added since 2011 # of Beds 800 12.3% 9.3% 10.0% Beds Expansion 10.0% 670 10.8% 8.0% 9.2% 600 400 283 5.0% 200 0.0% 330 76 0 2011 C 380 325 2012 2013 2014 2015 1Q16 2011 D Adjusted EBITDA Margin Expansion (1) 630+ bps margin expansion since 2011 360bps 50bps 100bps 120bps 2012 2013 2014 2015 1Q16 Capital Deployed on Acquisitions ($ millions) Total: $5.5bn 22.6% 2,156 1,804 16.3% 739 443 206 FY11 2012 2013 2014 2015 2011 FY15 164 2012 2013 2014 2015 Source: SEC filings and company press release. (1) Adjusted EBITDA margin calculated as Adjusted EBITDA divided by revenue after provision for doubtful accounts. (2) 12/31/15 YTD capital deployed includes net cash paid for acquisitions, repayment of assumed CRC debt and issuance of common stock in connection with CRC acquisition; excludes Priory. (3) 1Q16 capital deployed includes cash paid for acquisitions, repayment of assumed Priory debt and issuance of common stock in connection with Priory acquisition. 16 (2) 1Q16 (3) 6 Business Mix Diversified by Geography, Service and Payor Pro Forma LTM 3/31/16 Revenue (1) IL, 1% LA, 2% NV, 1% MO, 2% GA, 2% NC, 2% MI, 2% Significant Geographic Diversification OH, 1% WI, 1% VA, 1% MA, 1% WA, 1% TX, 2% MS, 2% CA, 3% Medicaid payments from 43 states, the  Receive District of Columbia and Puerto Rico  reimbursements are primarily for  Medicaid services provided to children and  adolescents FL, 3% IN, 2% TN, 3% and Local Authorities revenue diversified  NHS across 450+ commissioners  PA, 6% AR, 5% UK, 44% Bed Mix – Pro Forma LTM 3/31/16 (1) RTC 11% Adult care 10% Education & Children's Services 9% facility accounts for more than 2% of total No facility revenue  Payor Mix – Pro Forma LTM 3/31/16(1) Self-Pay/Other 11% Acute 19% Specialty 16% Medicare 8% NHS/Local Authorities 40% Comm‘l 17% Elderly Care 13% (1)  All Others, 10% AZ, 3% Attractive and Well Diversified Payor and Bed Mix diversification with current operations  Geographic across 39 U.S. States, Puerto Rico and U.K. U.K. Healthcare 22% Medicaid 24% Pro forma for the acquisition of CRC, QAM, Choice Lifestyles, Pastoral, Mildmay Oaks, Care UK, Manor Clinic, Belmont, Danshell, H&SCP, Manor Hall, Meadow View, Duffy’s, Discovery House, MMO and Priory. 17 Strong Financial Performance and Cash Flow Dynamics 7 Adjusted EBITDA Revenue ($ millions) ($ millions ) $500 $2,000 $1,794 1,500 300 $1,005 1,000 500 $405 400 $713 100 $407 $216 $145 $35 2012 2013 2014 2015 Margin 2011 2012 2013 2014 2015 16.3% 19.9% 20.4% 21.4% 22.6% Adjusted EBITDA – Capex Adjusted EPS ($ millions) ($/share) $150 $2.50 $129 100 $2.23 2.00 $102 $1.54 1.50 $76 $53 50 $81 0 0 2011 $215 200 $1.07 1.00 $25 0.50 $0.66 $0.27 0.00 0 2011 2012 2013 2014 2011 2015 Source: SEC filings and company press release. See Appendix for reconciliations. 18 2012 2013 2014 2015 Key Investment Highlights Premier Pure Play Behavioral Health Service Provider – Leading Platforms in Both the U.S. and the U.K. Large Addressable Market with Attractive Underlying Industry Tailwinds – $27bn U.S. Market and $21bn U.K. Market Strong Growth and Diversification Through a Series of Transformational Acquisitions Management Team with Track Record of Creating Shareholder Value – Strong Operators and Skilled Acquirors Multiple Levers to Support Sustainable, Long-term Growth – 10% Annual Organic Revenue Growth and 70% Revenue CAGR Over Last 5 Years Business Mix Well Diversified by Geography, Service and Payor Strong Financial Performance and Cash Flow Dynamics – EBITDA and EPS CAGR of 84% and 70%, respectively, from 2011-2015 19 Appendix 20 II . Pro Forma Combined Adjusted EBITDA(1) Reconciliation Description of Adjustments a. Pro Forma Adjusted EBITDA Reconciliation Represents the equity based compensation expense of Acadia. b. Represents debt extinguishment costs of $10.8 million for Acadia related to its 2015 repayment of $97.5 million of its 12.875% senior unsecured notes. c. Represents Priory impairment of property, plant and equipment and intangible assets. d. Represents (gains) losses on disposals of assets for Priory. e. Represents restructuring costs, including severance and site closure costs, and legal and professional costs incurred of $4.0 million ($ in millions) PF Net Income PF LTM March 31, 2016 $171.8 PF Interest expense, net 197.4 PF Income Tax Provision 51.3 PF Depreciation and Amortization 136.9 f. Represents non-cash rent expense incurred by Priory for the respective periods. Pro Forma EBITDA g. Represents the pro forma effect of Priory’s acquisition of Life Works on September 17, 2015, as if the acquisition occurred on January 1, 2015. a) Equity-based compensation expense 23.5 h. Represents the pro forma effect of cost savings synergies associated with the Company’s acquisition of CRC of approximately $15.0 million for on a pro forma basis less actual savings realized. The CRC cost savings synergies relate primarily to headcount reductions as well as to the reduction in certain professional and outside service fees across various departments and other general and administrative expenses and are expected to be fully realized by the first quarter of 2017. b) Debt extinguishment costs 10.8 c) Asset impairments 44.3 d) Gain (loss) on asset disposals <0.1 i. (1) Represents the pro forma effect of cost savings synergies associated with the Company’s acquisition of Priory of approximately $20.0 million on a pro forma annualized basis. We anticipate that we will incur approximately $3.0 million in severance and other costs to achieve these synergies. We expect to incur a majority of these costs during the year ending December 31, 2016, and we expect to realize these cost savings synergies over the 24 month period following completion of the acquisition. These cost savings synergies relate primarily to headcount reductions as well as to the reduction in certain professional and outside services fees across various departments and other general and administrative expenses. e) Priory reorganization costs 4.0 f) 3.4 Non-cash rent expense g) Pro forma effect of Priory Acquisitions h) CRC acquisitions synergies i) Priory acquisition synergies Total Pro Forma Adjusted EBITDA Represents the unaudited pro forma condensed combined results of Acadia and gives effect CRC, Priory and certain other acquisitions as if each occurred on January 1, 2015. Cost savings are estimated and subject to significant risks and uncertainties. Transaction costs and Gain on foreign currency derivative have been excluded from the pro forma condensed results. 21 $557.4 2.1 5.8 20.0 $671.3 Pro Forma Acadia EBITDA (1) Reconciliation (before Priory) Description of Adjustments Pro Forma Adjusted EBITDA Reconciliation a. See adjustment a) on page 22 b. See adjustment b) on page 22 ($ in millions) c. Represents management fees paid by CRC to its private equity investors that were eliminated in connection with the acquisition of CRC PF Net Income d. See adjustment d) on page 22 e. See adjustment h) on page 22 PF LTM December 31, 2015 PF Interest expense, net 121.2 PF Income Tax Provision 62.4 PF Depreciation and Amortization 66.3 Pro Forma EBITDA 36.1 b) Debt extinguishment costs 10.8 c) Management Fees 0.7 d) Gain (loss) on asset disposals 1.0 Total Pro Forma Adjusted EBITDA Represents the unaudited pro forma condensed combined results of Acadia and gives effect to CRC and certain other acquisitions as if each occurred on January 1, 2015. Cost savings are estimated and subject to significant risks and uncertainties. Transaction costs and Gain on foreign currency derivative have been excluded from the pro forma condensed results. 22 $394.3 a) Equity-based compensation expense e) CRC acquisitions synergies (1) $144.4 10.6 $453.5 Priory EBITDA Reconciliation Description of Adjustments a. See adjustment b) on page 22 b. See adjustment d) on page 22 c. See adjustment e) on page 22 d. See adjustment f) on page 22 e. See adjustment g) on page 22 f. See adjustment h) on page 22 Pro Forma Adjusted EBITDA Reconciliation PF LTM ($ in millions) PF Net Income $17.4 PF Interest expense, net 79.8 PF Income Tax Provision (9.1) PF Depreciation and Amortization 68.6 Pro Forma EBITDA a) Debt extinguishment costs $156.8 26.3 b) Gain (loss) on asset disposals 0.8 c) Priory reorganization costs 7.8 d) Non-cash rent expense 4.1 e) Pro forma effect of Priory Acquisitions 2.5 f) Pro forma effect of Priory sale-leaseback transactions Total Pro Forma Adjusted EBITDA 23 September 30, 2015 (2.6) $195.7 Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation Year Ended December 31 $mm 2011 ($34.9) Net Income 2013 2014 2015 1Q16 $20.4 $42.6 $83.0 $112.5 $25.7 2012 - Loss (income) from discontinued operations, 1.7 0.1 0.7 0.2 (0.1) Loss attributable to non-controlling interests - - - - (1.1) (0.3) (5.3) 12.3 26.0 42.9 53.4 7.1 Interest expense, net 9.2 29.8 37.3 48.2 106.7 37.7 Depreciation and amortization 4.3 8.0 17.1 32.7 63.6 28.0 $70.6 $123.6 $207.0 $335.0 $98.2 17.3 2.3 5.2 10.1 20.5 6.9 b) Debt extinguishment costs - - 9.4 - 10.8 - c) (Gain) loss on foreign currency derivatives - - - 41.5 8.1 1.3 $35.2 Provision for income taxes ($25.0) EBITDA a) Equity-based compensation expense d) Transaction-related expenses e) Sponsor management fees Adjusted EBITDA (15.3) 1.9 (0.4) 7.2 13.7 36.6 26.3 - - - - - $81.0 $145.3 $215.5 $404.8 $131.0 Description of Adjustments a. Represents the equity-based compensation of Acadia. b. Represents debt extinguishment costs related to the repayment of $97.5 million of the Company's 12.875% Senior Notes due 2018, including a prepayment premium of $6.8 million and the write-off of $2.6 million of deferred financing costs in 2013 and a prepayment premium of $7.5 million and the write-off of $3.3 million of deferred financing costs in 2015. c. Represents the change in fair value of foreign currency derivatives purchased by Acadia related to its acquisition of Partnerships in Care on July 1, 2014, Priory on February 16, 2016, and to its other acquisitions in the U.K. d. Represents transaction-related expenses incurred by Acadia related to acquisitions. e. Represents the management fees paid by Acadia to its equity sponsor prior to the termination of the professional services agreement between Acadia and its equity sponsor on November 1, 2011. Source: SEC filings and company press release. 24 Adjusted EPS Reconciliation Adjusted Income from Continuing Operations per Diluted Share Year Ended December 31 $mm, except for number of shares and adjusted income from continuing operations per share 2011 Income (loss) from continuing operations ($33.2) $20.5 $43.3 $83.2 $112.4 $25.7 (5.3) 12.3 26.0 42.9 53.4 7.1 ($38.5) $32.8 $69.2 $126.2 $165.8 $32.8 a) Debt extinguishment costs - - 9.4 10.8 - b) (Gain) loss on foreign currency derivatives - - - (15.3) 1.9 41.5 8.1 7.2 13.7 36.6 26.3 d) Sponsor management fees 1.3 - - - - - e) Income tax provision/benefit reflecting tax effect of adjustments to income (loss) from continuing operations 0.6 (15.4) (32.2) (39.5) Adjusted income from continuing operations $5.0 $25.6 $53.6 $85.0 $152.8 $45.8 Weighted-average shares outstanding – diluted (mm) 18.8 38.7 50.3 55.3 68.4 83.4 $0.27 $0.66 $1.07 $1.54 $2.23 $0.55 Provision for income taxes Income (loss) from continuing operations before income taxes c) Transaction-related expenses Adjusted income from continuing operations per diluted share 2012 2013 2015 2014 - 1Q16 (62.4) (0.4) (12.9) Description of Adjustments a. Represents debt extinguishment costs related to the repayment of $97.5 million of the Company's 12.875% Senior Notes due 2018, including a prepayment premium of $6.8 million and the write-off of $2.6 million of deferred financing costs in 2013 and a prepayment premium of $7.5 million and the write-off of $3.3 million of deferred financing costs in 2015. b. Represents the change in fair value of foreign currency derivatives purchased by Acadia related to its acquisition of Partnerships in Care on July 1, 2014, Priory on February 16, 2016, and to its other acquisitions in the U.K. c. Represents transaction-related expenses incurred by Acadia related to acquisitions. d. Represents the management fees paid by Acadia to its equity sponsor prior to the termination of the professional services agreement between Acadia and its equity sponsor on November 1, 2011. e. Represents the income tax provision adjusted to reflect the aggregate tax effect of the adjustments to income (loss) from continuing operations described above based on effective tax rates. Source: SEC filings and company press release. 25