Alcidion : Q3 FY22 Quarterly Activities Report and Appendix 4C

27 April 2022

Australian Securities Exchange 20 Bridge Street

Sydney NSW 2000

Q3 FY22 Quarterly Activities Report

Melbourne, Australia - Alcidion Group Limited ('Alcidion' or the 'Company') today releases its Appendix 4C for the quarter ended 31 March 2022 (Q3 FY22) and a business update detailing operational highlights.

Highlights:

•  Q3 operating cash outflow of $0.4M - positive inflow of $1.6M after excluding the settlement of M&A costs related to the Silverlink acquisition

•  New sales TCV in Q3 totalled $12.5M with $4.3M expected to be recognised in FY22

•  YTD (as at end of Q3) new sales TCV of $42.9M, 93% up on the prior corresponding period (PCP) with $12.9M able to be recognised in FY22

•  At the end of Q3, contracted revenue expected to be recognised in FY22 stands at $31.7M (including $4.4M from Silverlink) - up 28% on the PCP and 22% ahead of FY21 full year revenue of $25.9M

•  A further $1.0M of scheduled renewal revenue is expected to be converted to recognised revenue in Q4

•  Two contracts (NT Health and East Lancashire), signed subsequent to the end of Q3 with a TCV of $6.4M, are not included in the above figures and are illustrative of a mature pipeline of opportunities in ANZ and the UK

•  Cash balance of $17.5M at 31 March 2022

Alcidion Group Managing Director Kate Quirke said, "Alcidion has had a very strong quarter delivering positive operating cash flow in Q3 of $1.6M after excluding settlement of one-off M&A costs. During the quarter Alcidion announced new contract wins and renewals with UK customers including new Miya Precision customers, upsell of additional modules to existing customers, renewal of Silverlink contracts and subsequent to the quarter end, an upgrade of an ExtraMed customer to Miya Flow. These new contracts demonstrate the benefits of the recent acquisitions alongside our growth strategy.

In Australia, we entered into a new $5.0M, 5-year agreement to upgrade Northern Territory Health to Miya Precision with options to add additional modules over time. This active start to the calendar year demonstrates Alcidion is executing its strategy to attract new customers, upsell additional modules and upgrade existing customers to Miya Precision, as evidenced by these recent contract wins".

Financial Update

Alcidion made $12.5M of new sales in Q3, with $4.3M able to be recognised in FY22. New sales comprised $9.2M (74%) of recurring Product revenue and $3.3M (26%) of non-recurring Services revenue (which includes product implementation).

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 [e-mail]

FY22 YTD (as at end of Q3) new sales is $42.9M, 93% up on cumulative new sales at the same time last year. 62% of new sales relate to recurring Product revenue and 38% to non-recurring Services revenue.

Illustrating the breadth and maturity of the sales pipeline in ANZ and the UK, Alcidion signed two new contracts subsequent to the end of Q3 with a TCV of $6.4M. These sales are not reflected in the Q3 figures disclosed above.

Cumulative new sales

45

40

35

30

25

$M

20

15

10

5

0

Q1

Q2

Q3

Q4

FY20FY21FY22

At the end of Q3, contracted revenue able to be recognised in FY22 is $31.7M, up 28% on the PCP (including $4.4M contribution from Silverlink), and 22% ahead of FY21 sales of $25.9M.

The contracted revenue split between products, product implementation and services as at end of Q3 is as follows:

A$M	Products	Product Imp	Services	Total
Recurring	21.7	-	-	21.7
Non-recurring	-	6.0	4.0	10.0
Total	21.7	6.0	4.0	31.7

A further $1.0M of scheduled renewal revenue is expected to be converted to contracted revenue over the remaining course of FY22.

Q3 operating cash outflow was $0.4M, however, when excluding the settlement of H1 M&A costs related to the Silverlink acquisition, Alcidion generated +$1.6M of operating cash flow.

YTD operating cash flow at the end of Q3 was negative $2.3M, however, Alcidion is YTD operating cash flow breakeven when excluding the settlement of M&A costs related to the Silverlink acquisition incurred in H1.

Cash receipts from customers in Q3 were $11.1M, which was the highest quarter of receipts this financial year. Total YTD cash receipts of $27.5M is 23% ahead of cumulative cash receipts at the same time in the prior year of $22.3M.

Quarterly cumulative cash receipts

35.0

30.0

25.0

20.0

$M

15.0

10.0

5.0

-

Q1

Q2

Q3

Q4

FY20FY21FY22

The Company's cash balance was $17.5M as at 31 March 2022, noting that subsequent to the end of the quarter, A$2.6m was paid to the Silverlink vendors in relation to the first of two earn out conditions being met.

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.

Business Update

During Q3, Alcidion signed several significant contracts including:

•  A 5-year, $1.9M TCV contract with NHS Tayside (Scotland) to implement the Miya Observations and Assessments modules of Miya Precision. The contract expands Alcidion's UK market presence to 39 sites (27%), with at least one Alcidion product. NHS Tayside is the third health board in Scotland to implement Miya Observations and Assessments, following the successful delivery of Miya Observations at NHS Lanarkshire and NHS Fife continuing to validate the benefits of our products.

•  A 5-year contract, with a TCV of $1.35M with Herefordshire and Worcestershire Health and Care NHS Trust to implement the Miya Flow module of Miya Precision. This is the first community trust, and one of NHS England's mental health global digital exemplars, to procure Alcidion's flow technology following the impact seen in acute hospitals through improved visibility for staff enabling timely care for patients.

•  A 5-year expanded contract with Dartford and Gravesham NHS Trust (TCV of $3.0M) to procure Miya Emergency, a new Miya Precision module, together with resale of new partner Provation's anaesthetics module. Provation is highly complementary to Alcidion's partner network, with their Provation® iPro anaesthesia information management system. The agreement expands Alcidion's relationship with Dartford and Gravesham; the first trust to implement Miya Precision in the UK in March 2019 and now the first to implement Miya Emergency; and

•  Renewals with two existing Silverlink customers, Moorfields Eye Hospital and Liverpool Heart and Chest Hospital for use of the Silverlink Patient Care System (PCS). They have a combined TCV of $2.8M over 3 years and provide further validation of Silverlink's long-standing customer relationships delivering stable recurring revenue.

Following the end of the quarter, Alcidion also signed and announced:

•  5-year contract with a TCV of $1.43M, with East Lancashire Hospitals NHS Trust to implement the Miya Flow module, an upgrade to the existing ExtraMed Inpatient Flow Manager (IPFM) which has been used at East Lancashire for almost a decade. This represents the first customer upgrade from ExtraMed's IPFM to Miya Flow following Alcidion's purchase of ExtraMed in April 2021. Miya Flow will overlay Cerner's Millennium EPR to support clinical staff and streamline the patient journey, highlighting Alcidion's interoperability with other technology providers; and

•  a new 5-year contract with NT Health with a TCV of $5.0M to upgrade to Miya Precision and deploy the Miya Flow, Access and Command modules across the 5 main hospitals in the Northern Territory. The upgraded solution will support NT Health's patient flow and bed management between major hospitals and satellites. This will be facilitated by deployment of flexible electronic journey boards, integrated bed management, hospital operations command centre capability and dedicated emergency department functionality using the Fast Healthcare Interoperability (FHIR) event-based Miya Precision Platform.

Staff appointments

During the quarter, Alcidion announced three key staff appointments, two based in the UK and one in ANZ, with all three positions focused on accelerating market growth.

In March 2022, the Company announced the appointment of Florian Stroehle as Director of Strategy and Business Development. Florian will be based in Alcidion's Auckland Office and will lead new business development across Australia and New Zealand and new markets.

Alcidion also welcomed Steve Leggett as UK Head of Strategic Markets who will be focussed on the opportunity for EPR deployments in the UK along with appointment of Dr Paul Deffley as UK Chief Medical Officer who will help oversee and support the growth of the UK business.

Investor Webcast

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

To register for the webcast, please follow this link:https://us06web.zoom.us/webinar/register/WN_Yy2Ysd9CSt2nQlPCOhAZRQ

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]

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. Alcidion, Miya Precision, Patientrack and Smartpage are registered trademarks. All other brands and product names and trademarks are the registered property of their respective companies.