Alcidion : Investor Presentation - Acquisition & Capital Raising

onlyuseTransformational Acquisition & Capital Raising Presentation

ersonal7 December 2021

onlyuseExecutive Summary ersonal

onlyuse ersonal1.

"Acquiring Silverlink Software is strategic and transformational for Alcidion. It will allow us to leverage the capability of the Miya Precision platform to ultimately deliver a cloud-native,

modern and modular EPR1 to rival major global incumbents"

• Kate Quirke (Alcidion Group Managing Director)

1	1	Acquisition of:	3
	Patient Case System (PCS)	Modern, Modular
			EPR

1 •	Miya Precision is a smart clinical support platform applying explainable AI and predictive analytics to consolidate real-time
	data, enabling faster and more effective decision making by clinicians
1 •	PCS is one of the key foundation of hospital IT systems, capturing all non-clinical patient & attendance information to facilitate
	care delivery
3 •	Leveraging the Miya Precision platform and incorporating PCS provides the ability for Alcidion to ultimately provide a cloud-
	native, modern and modular EPR solution
EPR = Electronic Patient Record	3

Executive Summary

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Acquisition of

Silverlink

Software

Strategic

Rationale

• Acquiring Silverlink Software (Silverlink), one of the largest and few remaining specialist PAS1 providers servicing the UK NHS, with flagship Patient Case System (PCS) product
• A PAS is a foundation of hospital IT systems capturing patient and attendance information to facilitate care delivery
• 12 long-standing NHS Trusts (11 new for Alcidion) with recurring revenue & avg. remaining contract term of 3.0 yrs
• Silverlink FY22 forecast2 annual revenue of $7.8M from existing contracts, generating EBITDA of $4.8M (62% EBITDA margin)
• Expected contribution to Alcidion FY22 revenue of $4.2M ($4.0M contracted) & EBITDA of $2.4M (~6.5 months)
• Acquisition price in cash of £30.0M (A$55.5M3) with further £3.0M (A$5.6M3) subject to earn-out conditions
• Adds strategic PAS capability to Alcidion's offering - provides transformational opportunity for Alcidion to become a cloud-native, modern and modular EPR provider to rival major global incumbents
• Expands UK market penetration to 38 trusts (~26% market presence) while also expanding the addressable market
• Significant growth opportunity (both cross and upsell) with both existing customers and 60+ UK Trusts needing to implement or replace legacy PAS systems; opportunities also exist in the ANZ market
• In line with UK NHS digital transition funding program - confirmed £2.1B for NHS IT upgrades and digital health technology in recent budget

1. PAS = Patient Administration System

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1. Based on financial forecasts provided by Silverlink management; 30 April 2022 Year-end
2. AUD / GBP of $0.54

Executive Summary

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Major Contract with Commonwealth of Australia

Outlook

Capital Raising

• Alcidion, as part of a Consortium led by Leidos Inc, have signed a major healthcare IT project with the Commonwealth of Australia to capture data and support clinical decision making
• $23.3M initial TCV over 6 years with $3.0M expected to be recognised in FY22
• TCV potential of approximatively $50M over 15 years, assuming all renewals and options are exercised
• Major validation of Miya Precision platform; providing significant reference site for other state / federal contracts
• Contracted revenue for FY22 of $18.7M at 30 November 2021, with a further $2.1M of scheduled renewal revenue expected to be converted to contracted revenue and recognised in FY22
• Further contracted revenue of $3.0M from a contract with the Commonwealth of Australia and $4.0M from Silverlink acquisition
• Pipeline continues to develop with further opportunities now in contract negotiation stage providing heightened optimism about the broader Alcidion opportunity, particularly in the UK
• A$55M capital raise via the issue of 220 million new ordinary shares at $0.25 per new share, comprising:
• • A$30M Placement, issuing 120 million fully paid ordinary shares under Alcidion's existing Placement capacity per
    ASX Listing Rule 7.1; and
  • Underwritten 1 for 10.5 accelerated non-renounceable entitlement offer to raise A$25M, via the issue of approximately 100 million fully paid ordinary shares
• Proceeds used to fund Silverlink acquisition and costs associated with the transaction

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