Expanding Craneware's Potential

Acquisition of Sentry Data Systems

July 2021

Craneware's Purpose: Help Healthcare Providers Further Their

Mission Through Optimal Financial and Operational Performance

Market Drivers

What the Value-based Market Needs

▪ USA has highest health spending per capita in the world with one of

▪ Collection of granular data and the use of insightful analytics to

the lowest life expectancies in the developed world1

understand the opportunity to deliver better value

▪ Payers are exerting considerable pressure on US Healthcare providers

▪ The North American healthcare analytics market forecast to grow

to better manage costs

29.54% CAGR from US$3.13bn in 2020 to US$11.4bn by 20252

▪ Pressure to move towards value-based care: providers are

▪ A large and growing market opportunity

paid based on patient health outcomes

Our Offering

What Has Driven Our Growth

  • Financial and operational optimisation software & analytics for US hospitals and clinics
  • Delivered on a multiyear annuity subscription basis and using proprietary aggregated data
  • Founded 1999, IPO 2007, over 350 employees in UK and US and over 1,500 customers across the US

Growth has been driven through:

  • Increase in market share and in product set penetration
  • Industry transition from fee-for-service to value-based care
  • Recently launched Trisus® which will allow the migration of existing products to the cloud and integrate third party solutions to the platform
  • Our Software Solutions Sit at the Heart of Our Customers' Operations, Helping Them to Optimise Their Financial Performance
  • Helping to Drive a Shift in Healthcare Delivery & Reimbursement Through the Use of Data with Powerful and Insightful Analytics

1 OECD Health Statistics 2018.

2 North American Healthcare Analytics by Market Data Forecasts.

Positive FY21 Trading

High Customer Retention

Customer Retention >90%

Core to our customers' operations

Over 20 years of proprietary data

Annuity SaaS model

High visibility of future revenue

1 As of H1 2021.

Positive Sales Momentum

FY21: New Sales +40%; Revenue +5% and adj.

EBITDA +6%

Robust Financial Position

Consistently +30% Adj. EBITDA margins

$235.6m cash (inc. $187.4m net equity raise)

Progressive Dividend

Continued Innovation

To deliver on

growing market opportunity

Acceleration of Trisus® Adoption

900 Hospitals on Trisus®

>90m patient encounters

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© 2020-2021 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

Acquisition of Sentry: Expanding Our Offerings into Hospital Pharmacies and Their Retail Equivalents

Funding ($400m Enterprise Value):

  • $87.5m in new shares to Sentry shareholders1
  • $193.5m (£140m) equity placing to existing and new institutional shareholders
  • The remainder is financed by partially drawing on a new debt facility of up to $140m

Expansion of Expertise

The combination helps expand Craneware offerings further into the operational areas of hospital pharmacies and their retail equivalents

Customer Base Expansion

10,000+ hospitals, pharmacies and clinics across diverse end-markets (including 600+ hospitals)

New Applications

Hospital to retail pharmacy platform serving the largest retail and speciality pharmacy networks

Addition of Data Sets

Considerable retail pharmacy data and pioneering pharmacy analytics

Strategically Compelling & Double-digit EPS accretive

1 To be issued at completion. Subject to customary lock-in and orderly market undertakings.

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© 2020-2021 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

Sentry Overview: The Market-Leading 340B Platform

Company Snapshot

  • Founded in 2003 and headquartered in Deerfield Beach, FL
  • Software solutions for optimizing performance related to the interaction between hospital and retail pharmacies in the community via the vital, complex 340B Drug Discount Program ("340B")
  • Government program compliance software that generates operational insights to enhance care delivery, reduce costs, and streamline workflows
  • SaaS-basedplatform that automates drug procurement and utilization management

Selected Client Relationships

Financials Highlights

$92m

95%

2020 Revenue

Software Revenue

$23m

25%

2020 Adj. EBITDA

2020 EBITDA Margin

Key Highlights

  • Focus specifically on the niche procurement area of pharmaceutical products within the US hospital system and their community pharmacies
  • #1 340B Market Share
  • 10,000+ hospitals, pharmacies and clinics across diverse end-markets(including 600+ hospitals)
  • Longitudinal data set of 147M+ unique patients that delivers real-world data in near-real time

Note: Sentry accounts prepared under US GAAP.

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© 2020-2021 Craneware, Inc. All rights reserved. This document is confidential, is protected by trade secret laws, and may not be copied or disseminated in any form, including electronically.

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Craneware plc published this content on 13 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 July 2021 12:08:03 UTC.