MedAdvisor : Quarterly Report and Appendix 4C

MedAdvisor Limited

ACN 145 327 617 Level 2, 971 Burke Road

Camberwell Vic 3124mymedadvisor.com/investors

ASX RELEASE (ASX: MDR)

MedAdvisor reports Q3 revenue $11.3m and YTD revenue of $49.9m

March 2022 quarterly activities report

Melbourne, Australia, 29 April, 2022 - World-class medication management platform, MedAdvisor Limited (MedAdvisor or the Company) is pleased to provide this quarterly activities report regarding progress achieved over the March 2022 quarter (3Q FY22), alongside the Company's Appendix 4C Quarterly cashflow report.

3Q FY22 highlights (vs 3Q FY21):

• • 3Q FY22 YTD Operating revenue of $49.9 million, up 96.1% on prior corresponding period ('pcp'); up 12.6% on a like-for-like basis (3Q YTD FY21: $44.3 million)

• • Receipts from operations up 84.4% to $18.2 million

• • Cash at 31 March 2022 of $8.8 million up $3.2 million for the quarter

• • 3Q FY22 Operating revenue down 10.1% to $11.3 million

  • ○ Australian revenue up 70.4% to $3.9 million due to increased network and transaction volumes

  • ○ US revenue $7.4 million, additionally the Company received US$3 million (A$4.1 million) for the COVID awareness program which went live and will be recognised in 4Q

• • ARR up 24.0% year on year to $7.9 million

• • NZ roll out progressing to plan with 54% of Green Cross Health's pharmacy network now migrated

• • US business was awarded the 2022 Drug Store News REX (Retail Excellence) Award for Technology & Automation

Business activity update

USA

• • 3Q FY22 YTD operating revenue of US$28.9 million, (A$39.4 million) up 6.3% on a like-for-like basis (3Q YTD FY21: US$27.2 million), with timing of the commencement of the COVID awareness program, which is now live, impacting recognition of revenue in 3Q FY22.

• • 3Q FY22 revenue of US$5.4 million (A$7.4 million), down 28% year on year (3Q FY21: US$7.9 million). Note, had the COVID awareness program commenced as originally planned, 3Q FY22 revenue performance would be 17% up on pcp. The cash for the program (US$3m) was received in 3Q FY22.

• • In addition, 3Q FY22 was impacted by the reduction in the business' largest program. Revenue in 3Q is traditionally lower with many programs commencing towards the end of the quarter. 3Q FY21 benefited from a large pharmaceutical client program carried forward from 2Q FY21, which did not take place in 3Q FY22 as referenced above.

• • Significant efforts have been made to diversify the customer mix over the course of the last 12 months with a net 11 new brands running programs compared to the same time last year.

• • As at the time of reporting, the contracted revenue is 11% higher than this time last year.

Revenue (A $million):

3Q FY22

3Q FY21

YoY %

3Q YTD FY22

3Q YTD FY21

YoY %

MDR US - Reported1

7.4

10.3 -28.0%

39.4

• 18.2 116.3%

  MDR US - Like for like2

  7.4

  10.3 -28.0%

  39.4

• 37.1 6.3%

• 1. Reported revenue translated at an average currency of 0.73 AUD/USD

• 2. Like-for-like revenue translated at a constant currency of 0.73 AUD/USD

• • As at 31 March 2022, 12 digital programs (31 December 2021: 9) were live through the pharmacy network already activated for digital programs. The digital COVID program was delayed and will run through 4Q FY22.

• • The first two THRiV programs went live in the quarter with the first program launched in January 2022. There are four contracted and several more in the pipeline, with 17% of the active pipeline composed of THRiV proposals.

• • The US business was awarded the 2022 Drug Store News REX (Retail Excellence) Award for Technology & Automation, which recognises companies that are innovating and increasing efficiencies to allow pharmacists to focus on providing expanded clinical services and retailers the opportunity to help their customers and patients lead healthier lives

Australia and Rest of World

• • The March quarter saw a continuation of the strong performance delivered in 1H FY22.

• • Revenue of $3.9 million was up 70.4% (3Q FY21: $2.3 million). Revenue for 3Q YTD FY22 was up 44.8% to $10.5 million (3Q YTD FY21: $7.2 million), reflecting the increased network

capacity from signing Australian Pharmaceutical Industries (API) in July and returns from investment in sales capability and capacity.

Revenue (A $million):	3Q FY22	3Q FY21	YoY %	3Q YTD FY22	3Q YTD FY21	YoY %
MDR Rest of World	3.9 2.3 70.4%	10.5 7.2 44.8%

• • Annual Recurring Revenue was up 24.0% to $7.9 million (3Q FY21: $6.3 million). Pharmacy churn has remained low at less than 2% annualised.

• • The pharmacy network has continued to steadily grow since December and now stands at over 4,100. The NZ roll out is progressing to plan with 187 stores, representing 54% of the Green Cross pharmacy network, migrated to date.

• • Transaction revenue continued to perform strongly, with the COVID-19 booster program and Rapid Antigen Test messaging. To date, more than 4.5 million COVID-19 vaccinations have been administered through pharmacies in the MedAdvisor network. COVID-19 vaccinations utilise the MedAdvisor PlusOne booking functionality, which contributes to transaction revenue, and provides an important source of patient sign ups.

• • Patient numbers at 31 March 2022 were 2.6 million (30 June 2021: 2.0 million). Feedback from customers continues to be overwhelmingly positive since MedAdvisor upgraded to its new V6 platform during the last quarter.

• • Gross margin was 83.0%, reflecting an improvement of 26 basis points on 3Q YTD FY21 due to a lower cost to serve post re-platforming.

• • New partnership signed with a large pharmaceutical company in the UK to roll out MedAdvisor's software to their pharmacy chain clients. This will work in alignment with the relationship with the National Pharmacy Association (NPA) that will promote MedAdvisor's enhanced product to their independent pharmacy customers. Building a sales pipeline for the SaaS product is the near-term focus.

Financial update

• • 3Q YTD FY22 revenue of $49.9 million was up 96.0% on 3Q YTD FY21 and up 12.6% on a like-for-like basis. As discussed above, 3Q FY22 revenue was impacted by the timing of the COVID awareness program, reporting A$11.3 million in operating, down 10.1% on 3Q FY21.

• • The Australian business has seen a significant uplift in sales in 3Q to $3.9 million, up 70.4%, reflecting the larger network with API stores coming online and growth in transaction revenue due to the COVID vaccination program.

• • Gross margin % in the Australian business has also increased by 26 basis points to 83.0%. The prior year was impacted by higher costs associated with re-platforming, with cost reduction and efficiencies being realised in FY22.

• • Net operating cash inflow in 3Q FY22 was $3.5 million adjusted for lease payments, and $2.3 million 3Q YTD FY22, with cash receipts of $18.2 million for the quarter and $60.5 million year to date.

• • Payments to suppliers and employees was $14.3 million benefiting from the timing of an abatement payment to April of A$3.9 million. Adjusting for this, year-to-date operating cash outflow would be $1.6 million for the nine months.

• • At 31 March 2022 the Company had access to $14.3 million cash and facilities, being $8.8 million in cash and $5.5 million in available facilities from PFG.

Q3 FY22	Q3 YTD FY22
Operating cash flow	MedAdvisor US	MedAdvisor ROW	Total	MedAdvisor US	MedAdvisor ROW	Total
Receipts from customers	14.6	3.6	18.2	50.6	9.9	60.5
Payments to suppliers and employees	(10.2)	(4.1)	(14.3)	(43.2)	(13.9)	(57.1)
Net cash flow from operations	4.3	(0.4)	3.9	7.4	(4.0)	3.4
Lease payments classified as financing activities	(0.3)	(0.1)	(0.4)	(0.9)	(0.3)	(1.1)
Net cash flow from operations inc lease payments	4.0	(0.5)	3.5	6.6	(4.3)	2.3

Related party transactions

During the quarter, the Company made the following payments to related parties:

• • $35,976 paid to a related party that provides data services to the Company in the ordinary course of business; and

• • $189,833 in fees and executive remuneration paid to Directors.

- ENDS -

This document has been authorised for release by Robert Read, Chief Executive Officer & Managing Director.

For more information please contact:

Company Simon Glover Chief Financial [e-mail] [phone]

Investors Ronn [e-mail] [phone] Media Greer [e-mail] [phone]

About MedAdvisor

MedAdvisor is a world-class medication management platform that empowers patients to more simply manage their medication and improve adherence. MedAdvisor's highly automated and intuitive software system connects patients to tools and education materials from their preferred pharmacy. MedAdvisor works with 25,000 pharmacies in the US to deliver programs to help patients take their medication safely and effectively. In Australia, MedAdvisor has connected over 2.6 million patients through more than 70% of Australian pharmacies. MedAdvisor has partnered with Cotiviti in the US and is on track to become one of the largest players in the global digital adherence market. In 2018 and 2020, MedAdvisor was recognised in the AFR Fast 100. Visit:mymedadvisor.com/investors