Full Year Results 2022

Craneware plc

("Craneware" or the "Company" or the "Group")

Final Results

Successful integration of Sentry operations and cloud momentum provides strong foundation for

growth

20 September 2022 - Craneware (AIM: CRW.L), the market leader in Value Cycle software solutions for the US healthcare market, announces its audited results for the year ended 30 June 2022.

Financial Highlights (US dollars)

• Revenue increased 119% to $165.5m (FY21: $75.6m)
• Adjusted EBITDA1 increased 91% to $51.8m (FY21: $27.1m)
• Statutory Profit before tax $13.1m (FY21: $13.2m) reflecting increased operating profit offset by amortisation of acquired intangibles and bank interest payments resulting from the Sentry Data Systems, Inc. ("Sentry") acquisition
• Basic adjusted EPS1 increased 29% to 89.0 cents (FY21: 69.0 cents) and adjusted diluted EPS
  increased to 88.1 cents (FY21: 68.1 cents)
• Basic EPS 26.8 cents (FY21: 48.1 cents) and diluted EPS 26.5 cents (FY21: 47.5 cents)
• Annual Recurring Revenue2 increased by 164% to $170.3m (FY21 $64.5m)
• Robust operating cash conversion1 at 80% of Adjusted EBITDA (FY21: 99%) reflecting different cash generation profiles of acquired business
• Operating cash reserves (excluding restricted cash) at year-end of $47.2m (FY21: $48.3m) and
  Net Debt of $64.4m (FY21: $Nil)
• Proposed final dividend of 15.5p per share (18.80 cents) (FY21: 15.5p, 21.47 cents) giving a
  total dividend for the year of 28p per share (33.96 cents) (FY21: 27.5p, 38.10 cents) up 2%

Operational Highlights

• Sentry and Agilum businesses successfully acquired and integrated during the year, providing considerably increased scale, offering, team and market opportunity
• The enlarged business has successfully rebranded to The Craneware Group3
• Synergies realised have delivered combined target +30% Adjusted EBITDA1 margin ahead of schedule
• Initial cross-sales achieved and pipeline of opportunities is building
• 80% of ARR now from the Cloud, demonstrating successful execution of cloud strategy
• Trisus Chargemaster launched and vast majority of customers expected to have moved to the Trisus platform by end of current calendar year
• Continued investment in R&D and innovation to capitalise on growing market opportunity

Outlook

• Continued sales momentum across the enlarged Group
• Ongoing, long-term transition to value-based care provides basis for sustainable future growth
• Whilst cognisant of ongoing macro-economic challenges that are faced by our end customers, the Board remains confident in the continued strong performance of the enlarged Group

1. Certain financial measures are not determined under IFRS and are alternative performance measures as described in Note 14.
2. Annual Recurring Revenue ("ARR") includes the annual value of licence and transaction revenues as at 30 June 2022 that are subject to underlying contracts.
3. When we refer to 'Craneware', or 'The Craneware Group' or 'Group' we mean the group of companies having Craneware plc as its parent and therefore these words are used interchangeably.

Keith Neilson, CEO of Craneware plc commented:

"We are pleased to be reporting such positive results, which clearly demonstrate the increased scale of the enlarged Craneware Group and the breadth of our future opportunity. The addition of Sentry, which was completed and integrated during the fiscal year, represents a significant milestone for Craneware.

Whilst we remain cognisant of the ongoing challenges faced by our customers and partners, we are proud of the manner in which the Group has dealt with the challenging backdrop during the year. A focus for the year was to integrate our widened team and this was achieved with great success. Now, with our expanded and reorganised team we are confident we will be able to serve the considerable market need within the US healthcare space through the next stage of our evolution.

We anticipate accelerated levels of sales moving forward, delivering our next phase of growth. We have a robust balance sheet, high recurring revenues and with our high levels of customer retention, we look to further increase shareholder value."

About Craneware

We at The Craneware Group of companies, including our latest additions Sentry Data Systems and Agilum Healthcare Intelligence, passionately believe we can impact healthcare profoundly by delivering the insights healthcare organisations need to also transform the business of healthcare. Our shared vision is to be the operational and financial partner for US healthcare providers.

Our combined suite of applications and industry-leading team of experts help our customers contextualise operational, financial, and clinical data, providing insights that clearly demonstrate what great looks like. These value cycle insights deliver revenue integrity and 340B compliance, as well as margin and operational intelligence - something no other single partner can provide.

Together, approximately 40% of registered US hospitals are now our customers, including more than 12,000 US hospitals, health systems and affiliated retail pharmacies and clinics. Our customers are operating with a financial impact of nearly half a trillion dollars. We have data sets from customers covering more than 150 million unique patients encounters.

Learn more atwww.thecranewaregroup.com

Chair's Statement

I am pleased to report on a year of significant strategic progress, in which the acquisitions of US-based Sentry Data Systems, Inc. ("Sentry") and Agilum Healthcare Intelligence, Inc. ("Agilum") (collectively referred to as the acquisition of Sentry), were successfully completed, considerably increasing the scale of The Craneware Group, enhancing our pharmacy offering and cementing Craneware's position as a leading provider of Value Cycle solutions to the US healthcare market. The combination of the three organisations paves the way for long-term sustained growth, as COVID-19 related impediments dissipate, and the Group unlocks the significant opportunities of our extended product suite. With the transition of the Craneware offerings to the Cloud, which remains on track to complete in the current calendar year, and 80% of ARR now derived from Cloud based solutions, we are confident the building blocks are in place for our ongoing success.

Financials demonstrate increased scale of the Group

The increased scale of The Craneware Group can be seen in the financial performance achieved this year. Revenues increased 119% in the year to $165.5m with an adjusted EBITDA increase of 91% to $51.8m, achieving the combined Group adjusted EBITDA margin target of 30% ahead of schedule.

Software revenue and customer retention continues to be robust across the Group's offerings, as demonstrated by the growth in underlying ARR to $170.3m (30 June 2021: $64.5m). As previously reported, professional services revenues continue to be affected by the impact of the COVID pandemic on hospital workforce and operations. We are confident we will see professional services revenues return to pre-COVID levels once hospital staffing pressures ease.

As at 30 June 2022, the Group had strong operating cash reserves of $47.2m (30 June 2021: $48.3m)

and net debt of $64.4m (30 June 2021: $nil) representing circa 1.2 times reported adjusted EBITDA. This balance sheet strength, combined with our high levels of ARR, standing at $170.3m at year end, and the potential for a return to pre-pandemic levels of professional services revenue, leaves the Group well positioned for FY23 and beyond.

Investment in innovation provides increased addressable opportunity

With a customer base representing approximately 40% of registered US hospitals, including more than 12,000 US hospitals, health systems, clinics and affiliated retail pharmacies, supported by access to over 20 years of contextualised healthcare data, we have an enviable position within the US healthcare industry.

Our investment in innovation and M&A strategy provide us with a growing solution set to provide further value to our customers. Following two years of intense pressure on our customers and healthcare professionals, they are more motivated than ever to implement strategic and long-term planning. Our Trisus platform is specifically designed to help them achieve this. While we may see fluctuations in our professional services revenue in any individual reporting period, our largely recurring revenue business model provides us with the revenue visibility to continue to invest in our people and offering, to capitalise on the significant opportunity.

Making a positive contribution to society

Our purpose is to transform the business of healthcare through the profound impact our solutions deliver, enabling our customers to deliver quality care to their communities.

The tangible positive impact our solutions can make on the lives of others continues to be a great motivator for our talented team. The Craneware Group has always had a strong commitment to social responsibility and community engagement, which has been enhanced by the integration of our 340B offerings and colleagues. We have been delighted to welcome the Sentry and Agilum teams into The Craneware Group as well as additional new colleagues across the Group, on behalf of the Board, I

would like to thank all the enlarged team for their continued passion and commitment. We detail more of the impact the Group makes, within the communities we serve, in our ESG Statement within the Annual Report.

We were pleased to welcome Issy Urquhart, the Group Chief People Officer to the Craneware plc Board in April this year. Issy has been central in the successful integration of the Sentry team into The Craneware Group and the appointment of a leader with her skillset reflects both the importance the Board places on creating the right environment for our people to thrive and the increased scale of The Craneware Group.

Positive Outlook

The strength of the newly enlarged Craneware Group, our high levels of Annual Recurring Revenue, the breadth of solutions we can provide and the scale of data flowing through our platform are the solid foundations for our future sustained growth. Building on these foundations, whilst remaining cognisant of the challenges our customers and partners continue to face, the Board remains confident in Craneware's ability to address the expanded market opportunity presented.

Will Whitehorn

Chair

Craneware plc

19 September 2022

Strategic Report

We are pleased to be reporting such positive results, which clearly demonstrate the increased scale of the enlarged Craneware Group and the breadth of our future market opportunity. The addition of Sentry, which completed during the fiscal year, represents a significant milestone for Craneware. We are now bolstered by the deepened pharmacy data insights within our platform, the addition of new customers with further products and expertise. We are delighted to have welcomed the Sentry and Agilum teams along with their customers to The Craneware Group as we look forward to our next phase of growth together, in line with our shared vision of transforming the business of healthcare.

Following Sentry's acquisition, we have seen pleasing initial cross-sales which we believe are only a glimpse of things to come, as we look to capitalise on this considerable opportunity moving forwards. Additionally, we have made good progress in growing the number of customers on Trisus, our cloud- based platform, with the vast majority of hospital customers now interacting with the platform, and we expect to have largely completed the migration of customers onto the platform by the end of calendar 2022. Having achieved the scale and integration we had been aiming for during the period, we now have a solid foundation to move to the next step of our evolution.

There is great pride across the Group in the way in which the team has achieved these results amid a significant integration process and testing macro-economic challenges. Whilst remaining cognisant of the challenges our customers and partners continue to face, the strength of the newly enlarged Craneware Group, the applicability of our powerful data sets and solutions together with the scale of the opportunity ahead, means the Board remains confident in the Group's future success.

Market - the move to value-based care continues at pace

As we move through 2022, market conditions are continuing to normalise following the impact of the COVID pandemic, although there is still some way to go before full recovery in hospital workforce and operations to pre-pandemic conditions.

The pandemic ushered in a new era for the industry with healthcare providers having to adjust to new methods of healthcare delivery, with a reduced workforce available to them. Financially, both providers and payers struggled to navigate the rapidly changing market. However, with the US continuing to lag other developed nations in terms of life-expectancy while incurring the highest cost per capita in healthcare spend, the need to provide increased value in healthcare has continued unabated. We expect investment across the healthcare industry to deliver this change, with software and analytics being a key component.

The need for accurate financial data, supporting analytics and the insights those analytics can bring along with the efficiency of technology solutions has never been more important. We provide our customers with access to the market's only platform that directly and holistically addresses issues pertaining to the value cycle. Our products and systems, which are built on the insights of our data, enhance efficiency and helps ensure that both operational and administrative functions of a hospital are working optimally, enabling the existing teams to be more effective and efficient in their roles. Through these insights our solutions can deliver real financial returns and free up resource with a more targeted approach, that can be re-invested and re-deployed by healthcare providers to support the clinical care for their communities.

Our customers have remained resilient in the face of this ongoing challenging and evolving landscape, and we are committed to providing them with the support to navigate through the future impacts of the pandemic and deliver value-based care.

Growth Strategy - innovation to profoundly impact US healthcare operations which will drive demand and expand our addressable market.