Doctor Care Anywhere : Preliminary FY 2021 Results Announcement & Appendix 4E

For personal use only

28 February 2022

Preliminary FY 2021 Results Announcement and Appendix 4E

Growth and investment in FY 2021 provides a clear path to profitability

Highlights

• Exceeded FY 2021 revenue guidance
• 105% increase in consultations on FY 2020; totalling 440,000
• Gross margin improvement of over 5ppt in 4Q 2021
• Outlook: revenue in FY 2022 is expected to be between £35-38 million (A$66-71 million), representing 40-50% growth above FY 2021
• Outlook: Doctor Care Anywhere to achieve by end 1H 2023 (based on key assumptions set out below): o Run-rate EBITDA profitability
  o Revenue: annualised run-rate of between £45-55 million (A$85-104 million);
  o Gross margin: between 50-60%
  o Contribution margin: between 35-40%

Doctor Care Anywhere Group PLC (ASX:DOC, "Doctor Care Anywhere" or "the Company") is pleased to provide its Preliminary Annual Results Announcement and Appendix 4E for the year ended 31 December 2021.

This report is prepared in GBP in accordance with International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 (UK). All figures expressed in Australian Dollars ("A$") have been converted from British Pounds Sterling at an exchange rate of AUD:GBP 1:0.53, other than where noted.

Dr Bayju Thakar, CEO of Doctor Care Anywhere, said:

"Doctor Care Anywhere is taking care of thousands of patients every day. The chronic structural pressures that have long constrained the UK health system, exacerbated by the COVID pandemic, will continue to drive demand for our services over the next decade, and beyond. Nobody should have to wait weeks or months to get the care, diagnosis and treatment they deserve; we are ensuring that doesn't happen.

"Our clinicians, supported by our proprietary technology and brilliant people have been delivering exceptional care to a large and growing population of patients. I am delighted with the growth we achieved last year and with the scale that we have now achieved. We are starting to show that our joined-up primary to secondary care pathways are better for patients and payors, and that we are the go-to partner for delivering online and offline joined up healthcare. This year will see us not just growing rapidly, but also demonstrating a convincing path to near-term profitability. I am enormously proud of what we have achieved and even more excited by what is soon to come."

Operational Performance

Activated Lives reached 675,000 at 31 December 2021, representing a net increase of 242,500 (56.1%) above 31 December 2020. There is further growth potential across the Company's existing base of 2.4 million Eligible Lives, a figure that is expected to increase across FY 2022 through the launch of new partnerships, such as the recently announced agreement with Nuffield Health.

Consultation volumes grew significantly across FY 2021, totalling 440,000 for the period, an increase of 225,300

(104.9%) above FY 2020. The key drivers of this consultation growth were:

• The acquisition of new patients, with 163,700 patients having their first consultation during the period; and

Doctor Care Anywhere Group plc

ARBN 645 163 873

13-15 Bouverie Street, 2nd Floor

London EC4Y 8DP

For personal use only

• Increased uptake of the Company's secondary care pathway (referral for diagnostic tests and specialist review of results) with 17,100 patients completing the pathway during FY 2021, up from 1,400 (1,121.4%) in FY 2020.

Consultation growth was also supported by the Company's strong repeat user rate, with 276,300 consultations delivered to returning patients across FY 2021, representing 63% of total consultations. Growth in the Company's repeat user rate validates the investment made in acquiring new patients during the year, with these new patients expected to continue to utilise the Company's services across FY 2022 and beyond, building the operational scale which will underpin a profitable future.

Financial Performance

Summary of FY 2021 Consolidated Statement of Comprehensive Income

	£ in millions	FY21	FY20	Variance	%		1H 21	2H 21	Variance	%
	Utilisation revenue	21.0	9.0	12.0	133.3%	8.3	12.7	4.4	53.0%
	Subscription revenue	1.9	1.8	0.1	5.6%	0.9	1.0	0.1	11.1%
	Other revenue	2.0	0.8	1.2	150.0%	2.0	-	(2.0) (100.0%)
	Revenue	25.0	11.6	13.3	114.7%		11.2	13.7	2.5	22.3%
	Cost of sales	(14.6)	(5.9)	(8.7)	(147.5%)	(5.4)	(9.1)	(3.7)	(68.5%)
	Gross profit	10.4	5.7	4.6	80.7%		5.8	4.6	(1.2)	(20.7%)
	Gross profit margin	41.6%	49.1%	(7.5%)		51.8%	33.6%	(18.2%)
	Underlying gross profit margin	36.7%	45.4%	(8.7%)		41.3%	33.6%	(7.7%)
	Operating costs	(5.4)	(3.1)	(2.3)	(74.2%)	(2.4)	(3.0)	(0.6)	(25.0%)
	Contribution	5.0	2.6	2.3	88.5%		3.4	1.6	(1.8)	(52.9%)
	Contribution margin	20.0%	22.4%	(2.4%)		30.4%	11.7%	(18.7%)
	Underlying contribution margin	13.1%	16.7%	(3.6%)		15.2%	11.7%	(3.5%)
	Sales and marketing	(3.4)	(1.6)	(1.8)	(112.5%)	(1.6)	(1.8)	(0.2)	(12.5%)
	Research and development	(4.8)	(2.2)	(2.6)	(118.2%)	(2.2)	(2.7)	(0.5)	(22.7%)
	General and administration	(15.4)	(10.4)	(5.0)	(48.1%)	(6.7)	(8.7)	(2.0)	(29.9%)
	Other operating income	0.6	6.0	(5.4)	(90.0%)	0.3	0.3	-	-
	Share based payment	(1.0)	(2.2)	1.2	54.5%	(0.6)	(0.4)	0.2	33.3%
	Non-operating costs	(24.0)	(10.4)	(13.6)	(130.8%)		(10.8)	(13.3)	(2.5)	(23.1%)
	Share of JV net loss	(0.1)	(0.8)	0.7	87.5%	(0.1)	0.1	0.2	200.0%
	EBITDA	(19.1)	(8.6)	(10.6)	(123.3%)		(7.5)	(11.6)	(4.1)	(54.7%)
	Depreciation and amortisation	(1.3)	(0.9)	(0.4)	(44.4%)	(0.5)	(0.8)	(0.3)	(60.0%)
	EBIT	(20.4)	(9.5)	(11.0)	(115.8%)		(8.0)	(12.4)	(4.4)	(55.0%)
	Finance income/(expense)	(0.1)	(21.9)	21.8	99.5%	(0.1)	(0.1)	-	-
	Loss before tax	(20.5)	(31.4)	10.8	34.4%		(8.1)	(12.5)	(4.4)	(54.3%)
	Tax	0.3	0.1	0.2	200.0%	0.1	0.2	0.1	100.0%
	Loss after tax	(20.2)	(31.3)	11.0	35.1%		(8.0)	(12.3)	(4.3)	(53.8%)

Revenue for FY 2021 was £25.0 million, up 114.7% on FY 2020, exceeding guidance of at least 100% revenue growth. The main driver of revenue growth was increased GP consultations and a higher average revenue per consultation, which grew from £51.30 in 4Q20 to £55.20 in 4Q21 (7.6%).

Gross profit for FY 2021 was £10.4 million, up 80.7% on FY 2020. Underlying gross profit margin for FY 2021 was 36.7%, down 8.7% on FY 2020. The Company experienced a deteroriation in gross profit margin across 2Q21 and 3Q21, attributable to financial incentives paid to doctors due to workforce pressures in relation to the UK's COVID-19 vaccine rollout. Gross profit margin began to recover in 4Q21, increasing to 35.7%, a 5.4ppt increase on 3Q21. This improvement in gross profit margin is expected to continue across FY 2022, with margins on track to increase above the level seen in FY 2020 by the end of the year, following further normalisation in the cost of doctors and the roll-out of the Company's new operating model.

Contribution for FY 2021 was £5.0 million, up 88.5% on FY 2020. Underlying contribution margin for FY 2021 was 13.1%, down 3.6% on FY 2020. This decrease in underlying contribution margin was attributable to the reduction

Doctor Care Anywhere Group plc

ARBN 645 163 873

13-15 Bouverie Street, 2nd Floor

London EC4Y 8DP

For personal use only

in gross profit margin referenced above. Operating costs per consultation decreased by 15.0% in FY 2021, partially offsetting the impact of the reduction in gross profit margin.

Normalising for the one-off £5.0 million profit on disposal of a group company in FY 2020 and £1.1 million of expensed costs in respect of the Company's IPO, non-operating costs in FY 2021 increased 67.8% on FY 2020, to £24.0 million. The primary drivers of this increase in non-operating costs were:

• Sales and marketing: investment in driving growth in Activated Lives and consultations;
• Research and development: investment in the Company's technology platform and process automation; and
• General and administration: growth in the operational teams involved in supporting the delivery of the Company's services.

FY 2021 was a period of significant investment for the Company as it deployed the funds raised in its December 2020 IPO to drive growth and invest in its technology platform. As the benefits of these investments in scale and efficiency are realised across FY 2022 through improvements in gross margin and enhanced operational leverage, non-operating costs are expected to decrease both in absolute terms and, with scale, even faster on a per consultation basis.

Normalising for the £6.1 million of one-off items in FY 2020 referenced above, EBITDA loss increased 53.6% in FY 2021, to £19.2 million. EBITDA loss is expected to reduce significantly and rapidly across FY 2022 as revenue growth continues, margins improve and investment is reduced.

Outlook

Doctor Care Anywhere's plans will see it reach run-rate EBITDA profitability by the end of 1H 2023 (based on the key assumptions set out below). The key developments that will support this are:

• Continued organic revenue and consultation growth;
• Renegotiated key customer contracts (as previously announced), enhancing revenue and margins; and
• Launching of the Company's new operating model (as previously announced), enhancing productivity and margins.

With the recently closed placement of A$11.2m to existing shareholders, the Company has sufficient funds to achieve its guidance of EBITDA profitability.

Revenue in FY 2022 is expected to be at least £35-38 million (A$66-71 million), representing 40-50% growth above FY 2021.

The key financial metrics that support the Company achieving run-rate EBITDA profitability by the end of 1H

2023 are:

• Revenue: annualised run-rate of between £45-55 million (A$85-104 million);
• Gross margin: between 50-60%; and
• Contribution margin: between 35-40%.

Investor Webcast

Investors are invited to join a webcast presentation at 9:30am (AEDT) on 28 February 2022 hosted by CEO Dr Bayju Thakar and CFO Dan Curran.

Investors who wish to attend can register using the following link:

https://us02web.zoom.us/webinar/register/WN_22blP4DcT8e1fZ1pYRKkyA

Doctor Care Anywhere Group plc

ARBN 645 163 873

13-15 Bouverie Street, 2nd Floor

London EC4Y 8DP

For personal use only

Participants are encouraged to submit questions in advance via:

[e-mail]

- ENDS -

This ASX announcement has been authorised for release by the Board of Directors.

Forward looking statements:

This announcement contains forward-looking statements which are statements that may be identified by words such as "may", "will", "would", "should", "could", "believes", "estimates", "expects", "intends", "plans", "anticipates", "predicts", "outlook", "forecasts", "guidance" and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions and on a number of best estimate assumptions regarding future events and actions that, at the date of this announcement, are expected to take place.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and the directors and management of the Company. The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.

About Doctor Care Anywhere:

Doctor Care Anywhere Group PLC is a UK-based telehealth company that is committed to delivering the best possible patient experience and clinical care through digitally enabled, joined up, evidence based pathways on its proprietary platform. Doctor Care Anywhere utilises its relationships with health insurers, healthcare providers and corporate customers to connect with patients to deliver a range of telehealth services.

Further Information:

Roger Newby

Domestique Consulting - Investor Relations [phone]

Daniel Curran

Chief Financial Officer and Company Secretary [e-mail]

Doctor Care Anywhere Group plc

ARBN 645 163 873

13-15 Bouverie Street, 2nd Floor

London EC4Y 8DP

For personal use only

Appendix 4E - Preliminary Final Report FY2021

Doctor Care Anywhere Group plc

Year ended 31 December 2021

Reporting period

Current reporting period (FY21): 1 January 2021 to 31 December 2021

Previous reporting period (FY20): 1 January 2020 to 31 December 2020

Basis of preparation

This financial report has been prepared in accordance with measurement and recognition (but not disclosure) requirements of International Financial Reporting Standards in conformity with the requirements of the Companies Act 2006 (UK), in British Pounds Sterling.

The financial information on which this report is based is in the process of being audited.

Results for announcement to the market

				Variance to FY20
		FY21	FY20	Variance	%
Revenue	£m's	25.0	11.6	13.4	115.7%
Net loss	£m's	(20.2)	(31.3)	11.1	35.4%
Net tangible assets per security	£'s	0.06	0.13	(0.07)	(56.3%)

Revenue

Revenue growth across the period was driven by an increased volume of consultations delivered to the Company's growing base of Activated Lives.

Net loss

Net loss for FY20 included a number of irregular items, as below:

• Fair value finance charges in respect of Convertible Loan Notes issued in advance of IPO, such charges totaling £21.7m;
• Costs associated with the Company's listing on the ASX expensed in the period, the total cost of which was £3.7m, with £1.1m being expensed to the Statement of Comprehensive Income; and
• Other Operating Income generated in respect of the Company's partial disposal of Doctor at Hand Diagnostics Limited to AXA Health, such income totaling £5.0m.

Adjusting for these items, FY20 net loss was £13.5 million.

Doctor Care Anywhere Group plc

ARBN 645 163 873

13-15 Bouverie Street, 2nd Floor

London EC4Y 8DP