Alcidion : Q4 FY22 Quarterly Activities Report and Appendix 4C

For personal use only

27 July 2022

Australian Securities Exchange

20 Bridge Street

Sydney NSW 2000

Q4 FY22 Quarterly Activities Report

Melbourne, Australia - Alcidion Group Limited ('Alcidion' or the 'Company') today releases its Appendix 4C for the quarter ended 30 June 2022 (Q4 FY22) and a business update detailing operational highlights.

Highlights:

• FY22Q4 positive operating cashflow of $3.3M

• 1. Record quarterly cash receipts of $14.0M
• FY22 full year positive operating cashflow of $1.0M
• 1. FY22 operating cashflow of $3.1M, excluding one-off M&A costs of $2.1M

• 1. FY22 cash receipts of $41.4M, up 29% on pcp (prior corresponding period)
• Unaudited FY22 revenue of $34.0M, up 31% on pcp
• FY22 new sales with Total Contract Value (TCV) of $57.7M, up 96% on pcp
• 1. New TCV sales in Q4 of $14.8M, with $2.7M recognised in FY22
• Positive unaudited underlying FY22 EBITDA (excluding M&A costs)
• Opening balance of contracted revenue to be recognised in FY23 of $28.3M, up 87% on pcp
• 1. Further $2.9M of scheduled renewal revenue expected to be recognised in FY23
• Cash balance of $17.3M at 30 June 2022

Alcidion Group Managing Director Kate Quirke said, "Alcidion brings FY22 to a close with an outstanding final quarter delivering record cash receipts, which has not only resulted in positive operating cashflow for the quarter but also for the full year FY22".

"During the quarter we signed several new customers in the Australian and UK markets and signed contracts to upgrade a number of strategic, long-term customers to the latest Miya Precision platform. We continue to demonstrate the value proposition we provide customers via our products and solutions enhanced by the capabilities of our technical services team."

"Alcidion's continued growth in the face of a challenging external business environment is driven not only by large scale (announced) contracts but also by several smaller contracts which cumulatively contribute meaningfully throughout the year, delivering record new sales for FY22 with TCV of $57.7M. Some of these new contracts are with customers where we are deploying the first modules of the Miya Precision platform into important and well recognised digital health leaders, such as the recent contract with Alfred Health for Miya Flow."

"We head into the new financial year with $31.2M of contracted and expected renewal revenue, which when combined with our continually maturing pipeline both in ANZ and UK positions Alcidion for continued strong and profitable growth in FY23."

Alcidion Group Limited | Level 10 9 Yarra Street SOUTH YARRA VIC 3141 | ABN 77 143 142 410

T 1800 767 873| Wwww.alcidion.com| [e-mail]

Business Update

For personal use only

Alcidion signed several strategic contracts during the quarter which contributed to new sales with a TCV of $14.8M, the second highest quarter recorded to date, and to a record year of new sales for the year with a TCV of $57.7M. This included:

• A new 5-year contract with Northern Territory Health to upgrade to the latest release of Miya Precision. The upgraded solution will be facilitated by deployment of flexible electronic journey boards, integrated bed management, hospital operations command centre capability and dedicated emergency department functionality. This extends a long-standing relationship with the Northern Territory.
• A 5-year contract with Western Health Victoria to upgrade the previous Miya version to Miya Precision including integration to the Western Health EMR platform, which continues a 16-year partnership. The upgrade will also result in the move of the solution to full cloud deployment in the Alcidion Cloud.
• A new 5-year contract with Alfred Health to implement the Miya Flow module of Miya Precision. The Miya Flow solution was selected via a competitive tender process to support improvement of the flow of inpatient care across the Alfred's three hospitals. It will include integration to the Cerner EMR and existing patient administration system.
• A 5-year contract with East Lancashire Hospitals NHS Trust to implement the Miya Flow module, an upgrade from ExtraMed Inpatient Flow Manager (IPFM) which has been used for almost a decade. The agreement is the first customer upgrade from IPFM to Miya Flow following Alcidion's purchase of ExtraMed in April 2021. This deployment will be the first deployment of Miya Flow integrated with the Cerner EMR in the UK.
• An extension of the management services Alcidion provide for the eHealth NSW Enterprise Service Bus (ESB) for a further 12 months. The ESB provides integration for state-wide systems provisioned by eHealth.
• Extension of Herefordshire and Worcestershire Health and Care Trust's relationship with Alcidion through procurement of the Patientrack module to support their requirement to electronically record patient observations. The critical patient data collected in this module will appear in the recently procured Miya Flow solution.
• An ongoing relationship progressed with Calvary Health Care spanning their 14 hospitals and extensive aged care services across Australia to establish a comprehensive enterprise data warehouse and develop specialised clinical and business reporting services.

We also confirmed in May the formal announcement of Alcidion's role in the Leidos Consortium for the delivery of a health knowledge management system to support the delivery of healthcare services across the Australian Defence Force. The total contract value to Alcidion is $23.3M over the initial six-year term.

Financial Update

Based on current unaudited results, Alcidion is expected to report FY22 revenue of at least $34.0M, a 31% increase on pcp, including $4.3M of Silverlink revenue.

The contracted revenue split of products, product implementation and services for FY22 is as follows:

A$M	Products	Product Imp		Services	Total
Recurring	23.0	-	-	23.0
Non-recurring	-	6.3	4.7	11.0
Total	23.0	6.3		4.7	34.0

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FY22 underlying EBITDA (excluding M&A costs) will be positive, with further information related to margin and costs to be provided in the full year results to be released in late August 2022.

During Q4 FY22, Alcidion generated $14.8M of new sales (second highest quarter recorded to date), with approximately $2.7M recognised in FY22. In FY22, Alcidion delivered total new sales with TCV of $57.7M, which is 96% up on pcp.

Quarterly new sales

	30.0
	25.0						27.7
	20.0
$M	15.0							14.8
	10.0					12.6	12.5
	5.0						7.3
				4.8	4.8
	2.5	3.5	4.2	3.7	2.7
	0.0

			Cumulative new sales (TCV)
	60
											57.7
	50
	40
$M											42.9
30
				30.4				29.5
20
		17.4				10.2	22.2	13.9
	10	6.0
	0
	Q1		Q2						Q3	Q4
					FY20			FY21		FY22

The Company reported positive operating cashflow of $3.3M for Q4, resulting in a full year FY22 positive operating cashflow of $1.0M.

Excluding one-off M&A costs of $2.1M, the full year operating cash flow was $3.1M.

Cash receipts from customers in Q4 were $14.0M, the highest quarter of receipts recorded to date. Total YTD cash receipts of $41.4M is 29% ahead of cumulative cash receipts at the same time in the prior year of $32.0M.

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					Quarterly cumulative cash receipts
	45.0
	40.0
															41.4
	35.0
	30.0
$M	4.8	6.4	6.6	9.2	10.8	16.4	13.2	22.3	27.5	20.8	32.0
25.0
	20.0
	15.0
	10.0
	5.0
	-
		Q1					Q2					Q3			Q4
							FY20		FY21		FY22

The Company's cash balance was $17.3M as at 30 June 2022, with no debt.

As noted in item 6 of the Company's 4C, payments made to related parties and their associates totalled $280k for the quarter. The payments relate to Directors' remuneration.

Outlook

Alcidion begins FY23 in a strong position with $28.3M of contracted revenue to be recognised in FY23, up 87% on pcp. The Company has a further $2.9M of scheduled renewal revenue (existing customers renewing current subscriptions and license periods) which is expected to be converted to contracted revenue over the course of FY23.

Contracted revenue to be recognised in year

40.0

35.0

	30.0												31.7		34.0
$M		12.8	15.1	28.3	12.9	14.7	17.2	15.4	21.7	27.1	17.2	24.7	18.6	25.9
11.7
	25.0

20.0

15.0

10.0

5.0

-
Start of Year	Q1				Q2		Q3	Q4
			FY20		FY21		FY22		FY23

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Investor Webcast

Alcidion Group Managing Director Kate Quirke will host an audio webcast with investors via Zoom this morning at 11:00amAustralian Eastern Standard Time (AEST).

To register for the webcast, please follow this link:

https://us06web.zoom.us/webinar/register/WN_mzmtG2o_S1SUan4lef_Unw

Registered participants will receive an email containing the Zoom access link and phone dial-in details.

#### ENDS ####

Authorised for ASX release by the Board of Directors of Alcidion Group Limited

For further information, please contact:

KERSTIN WAHLQVIST

Investor Relations Manager

Ph: [phone]

[e-mail]

About Alcidion

Alcidion Group Limited (Alcidion) has a simple purpose, that is, to transform healthcare with proactive, smart, intuitive technology solutions that improve the efficiency and quality of patient care in healthcare organisations, worldwide.

Alcidion offers a complementary set of software products and technical services that create a unique offering in the global healthcare market. Based on the flagship product, Miya Precision, the solutions aggregate meaningful information to centralised dashboards, support interoperability, facilitate communication and task management in clinical and operational settings and deliver Clinical Decision Support at the point of care; all in support of Alcidion's mission to improve patient outcomes.

Since listing on the ASX in 2011, Alcidion has acquired multiple healthcare IT companies and expanded its foothold in the UK, Australia, and New Zealand to now service over 300 hospitals and 60 healthcare organisations, with further geographical expansion planned.

With over 20 years of healthcare experience, Alcidion brings together the very best in technology and market knowledge to deliver solutions that make healthcare better for everyone.

© Alcidion Group Limited 2022

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