Craneware : Interim Report H1 2022

Operational Highlights

• • Acquisition of Sentry completed 12 July 2021

• • First cross-group sales achieved

• • Integration of Sentry progressing ahead of plan

• • Increase of 26% to 1,134 hospitals on the Trisus Platform

• • Transition to a Cloud-based offering on track for completion by the end of this calendar year

• • % of ARR from the Cloud increased to 67% (30 June 2021: 16%)

• • Organic software licence revenue growth, contributing to the strong growth in ARR

• • Professional services delivery impacted due to COVID 19 related headwinds in the period

"The combined scale and expertise of the enlarged Craneware Group provides the potential for acceleration in ARR growth over the medium term, as we unlock the considerable cross and upsell opportunities within our enlarged customer base. Through our increased sales and marketing operations and unique breadth of offering we are also well placed to secure increased market share as the US healthcare industry continues its drive towards achieving greater value in healthcare."

- Keith Neilson, CEO and Co-founder

Outlook

• • Strong progress across all areas of the enlarged Group positions the business well for accelerated growth

• • Cross-sell opportunity provides potential for further accelerated ARR Growth

• • The Group remains well capitalised with cash reserves of $41.7m and net debt of $72.9m

• • The Board's expectations for the full year ending 30 June 2022 remain unchanged

Financial Highlights

• • First interim update for the enlarged Group, following the acquisition of Sentry Data Systems, Inc. ("Sentry")

• • Revenue for the six months increased 111% to $80.2m (H1 2021: $38m)

• • Adjusted EBITDA1 increased 78% to $23.7m (H1 2021: $13.3m)

• • Adjusted profit before tax2 increased 68% to $17.1m (H1 2021: $10.2m)

• • Profit before tax decreased to $6.2m (H1 2021: $9.9m) after $8.9m of amortisation of acquired intangible assets (H1 2021: $0m) and exceptional costs of $1.9m (H1 2021: $0.3m)

• • Adjusted basic EPS3 increased 34% to 43.5 cents per share (H1 2021: 32.5 cents per share)

• • Annual Recurring Revenue4 reached a new record of approximately $165m (30 June 2021: $64.5m)

  $165m

  Annual Recurring Revenue4 2

• • Cash of $41.7m, excluding restricted cash of $9.3m (H1 2021: $50.7m)

• • Net debt of $72.9m after the acquisition of Sentry

• • Interim dividend increased 4% to 12.5p per share (H1 2021: 12p per share)

  Revenue

  $23.7m

  Adjusted EBITDA1

  $17.1m

  Adjusted profit before tax2

  43.5¢

  Adjusted Basic EPS32

  $41.7m

  Cash (excl. restricted cash)

  12.5p

  Interim Dividend

  $21.6m

  Investment in R&D

• • Investment in R&D and innovation of $21.6m (H1 2021: $11.6m) of which $6.8m, being 31%, has been capitalised (H1 2021: $4.5m, 39%)

• 1 Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments and acquisition and share transaction related costs.

• 2 Adjusted profit before tax refers to profit before tax, amortisation of acquired intangibles and acquisition and share transaction related costs.

• 3 Adjusted Earnings per share (EPS) calculations allow for the tax adjusted acquisition costs and share related transactions together with amortisation on acquired intangible assets.

• 4 Annual Recurring Revenue includes the annual value of licence and transaction revenues as at 31 December 2021 that are subject to underlying contracts.

Craneware plc

Interim Report 2022

Craneware2plc Interim Report 2022

Chargemaster Solution

Transparent &Defensible Pricing

Trisus Pricing Analyzer

Using the power of the Trisus Platform, Trisus Pricing Analyzer simplifies and automates the price-modeling process, providing the speed and flexibility needed to adapt to dynamic market conditions.

Trisus Pricing Transparency

Provides hospitals and healthcare providers an easy, automated application to meet the CMS pricing transparency requirements for both standard prices and shoppable services.

Trisus Claims Informatics

Designed for retrospective, post-claim audit analysis. Data analysis of claims and remit data highlight issues in the charge capture process such as missing charges and revenue, incorrect/inaccurate charges, and compliance issues.

Medical Necessity &

Prior Authorization

InSight Medical Necessity

Serves all parts of your organization that need instant access to medical necessity requirements, from admissions to medical records and external practices.

Our Chargemaster Management Solution combines the award-winning feature set of Chargemaster Toolkit with the power of Trisus Chargemaster, providing powerful auditing capabilities, ease of use, and workflow process to facilitate effective collaboration between clinical and financial staff. This dynamic solution highlights opportunities to optimize revenue and impact operational inefficiencies.

Physician Revenue Toolkit

Ensures consistent, accurate pricing and coding for optimal reimbursement and compliance issues within physician chargemaster and fee schedule line items.

Online Reference Toolkit

A browser-based application providing quick access to comprehensive clinical, coding, financial, and regulatory reference data, enabling improved collaboration between clinical and financial staff and accurate coding and charging.

Reference Plus

Created to support the specific business needs of critical access and small hospitals with all the necessary tools to perform a complete chargemaster review in minutes.

Integration for Chargemaster Management

Eliminating manual data entry, Integration for Chargemaster Management ensures a quick and secure transfer of chargemaster changes and edits to Epic, Cerner, MEDITECH, and 32 additional accounting systems.

340B Program & Compliance

Sentinel

340B Business Intelligence

Helps you capture more by providing detailed tracking of all drug activity at the 11-digit NDC level for a complete audit trail and more

Provides a central place to view and analyze enterprise-wide reporting for the dispensations, claims, and purchasing data housed within yourinsights into your pharmacy operations. Our steadfast focus on compiling the right data means that this solution can track dispensations from multiple sources, qualify dispensations automatically, and provide a fully integrated and longitudinal record that links providers, patients, locations, payers, purchases, and dispensations.

Sentrex

A SaaS-based solution that helps covered entities (i.e. hospitals) manage their 340B contract pharmacy relationships to expand medication access to more patients while maintaining compliance with evolving legislation. This solution offers flexible configuration options that can be tailored to reflect each organization's own unique business process.

Sentry application(s), offering immediate and critical insight into your organization's 340B program performance. Designed specifically to sit on top of your Sentry application(s), it rolls up numbers like drug spend, claim volume, and covered entity revenue across your organization, translating them into meaningful visualizations that help you see data more clearly, manage it more easily - and act upon it more confidently. 340B Business Intelligence requires customers to have Sentinel, Sentrex or both solutions implemented prior to integration.

Referral Verification System

Sentrex330

Our contract pharmacy management solution for community health centers and clinics, helping expand access to affordable care through the industry's most complete retail and specialty pharmacy network. All while maintaining full compliance with the law and all HRSA guidance and regulations.

Our Senturion-managed Referral Verification System (RVS) leverages your existing Sentrex platform to access referrals initially deemed ineligible. And our Senturion Referral Verification System team of experts does the leg work for you - so you can stay focused on your overall 340B program success.

eRx

A new data extract option that uses your existing e-prescription data to tie prescriptions to the service location and capture the 340B eligibility that can potentially boost financial benefit to your organization. By using eRx Eligibility Check as an initial extract to get up and running, you can start realizing benefit in as little as 45 days. eRx is an add-on solution for Sentrex customers.

Craneware plc Interim Report 2022

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