Allscripts Healthcare : JP Morgan 2021 Virtual Healthcare Conference Presentation

Allscripts Healthcare Solutions

J.P. Morgan Virtual Healthcare Conference| January 2021

Disclaimer

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including the preliminary financial information included in this presentation, are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as "future," "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "will," "would," "could," "can," "may," and similar terms. Actual results could differ significantly from those set forth in the forward-looking statements and reported results should not be considered an indication of future performance. Certain factors that could cause Allscripts actual results to differ materially from those described in the forward-looking statements include, but are not limited to: our use of the proceeds from the sale of our EPSi business and CarePort Health business; our ability to achieve the margin targets associated with our margin improvement initiatives within the contemplated time periods, if at all; risks relevant to our share repurchase program, such as general market conditions, fluctuations in the price of our common stock or changes in our liquidity or capital allocation strategies; the magnitude, severity and duration of the COVID-19 pandemic, including the impacts of the pandemic on our business, our employees, our clients and our suppliers; security breaches resulting in unauthorized access to our or our clients' computer systems or data, including denial-of-services, ransomware or other Internet-based attacks; the failure by Practice Fusion to comply with the terms of its settlement agreements with the U.S. Department of Justice (the "DOJ"); the costs and burdens of compliance by Practice Fusion with the terms of its settlement agreements with the DOJ; additional investigations and proceedings from governmental entities or third parties other than the DOJ related to the same or similar conduct underlying the DOJ's investigations into Practice Fusion's business practices; changes in interoperability or other regulatory standards; the expected financial results of businesses acquired by us; the successful integration of businesses acquired by us; the anticipated and unanticipated

expenses and liabilities related to businesses acquired by us, including the civil investigation by the U.S. Attorney's Office involving our EIS business; Allscripts ability to

establish and maintain strategic relationships; Allscripts failure to compete successfully; consolidation in Allscripts industry; current and future laws, regulations and industry initiatives; increased government involvement in Allscripts industry; the failure of markets in which Allscripts operates to develop as quickly as expected; Allscripts or its customers' failure to see the benefits of government programs; the effects of the realignment of Allscripts sales, services a nd support organizations; market acceptance of Allscripts products and services; the unpredictability of the sales and implementation cycles for Allscripts products and services; Allscripts ability to manage future growth; Allscripts ability to introduce new products and services; the performance of Allscripts products; Allscripts ability to protect its intellectual property rights; the outcome of legal proceedings involving Allscripts; Allscripts ability to hire, retain and motivate key personnel; performance by Allscripts content and service providers; liability for use of content; price reductions; Allscripts ability to license and integrate third party technologies; Allscripts ability to maintain or expand its business with existing customers; risks related to international operations; changes in tax rates or laws; business disruptions; Allscripts ability to maintain proper and effective internal controls; and asset and long- term investment impairment charges. Additional information about these and other risks, uncertainties, and factors affecting Allscripts business is contained in Allscripts filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in the most recent Allscripts Annual Report on Form 10-K and subsequent Form 10- Qs. Allscripts does not undertake to update forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes in its business, financial condition or operating results over time.

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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2020 was our year of reset

Reset our client priorities

Reset our cost base

Reset our portfolio

Reset our balance sheet/capital structure

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Reset priorities to help our clients cope with COVID-19

Care	Interoperability	Patient	Electronic Health	Veradigm®
Coordination		Engagement	Records

Coordinated	COVID	Rapid	Screening and	COVID research
outpatient care	Dashboards	Telehealth	assessment, real-time	database and
across the	across	implementations	dashboards, daily results	clinical workflow
continuum	connected client		reporting, operations	initiatives
	ecosystems		management, vaccine
			tracking

#1 in Supporting our clients through COVID-19 Response and Recovery according to Reaction Data

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Reset cost base

Consolidated Adjusted EBITDA Margin

25%

	20.1%	20.5%-21.5%
20%	19.0%
15%	13.7%

10%

5%

0%

1Q20

2Q20

3Q20

4Q20E

See reconciliation of non-GAAP metrics in the appendix of this presentation and posted on the Allscripts investor relations website.

Expecting ~730 bps of Adjusted EBITDA margin improvement since 1Q20

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Reset our portfolio

$1.35B sale price	$365M sale price
>13x trailing revenue	~7.5x trailing revenue
~21x trailing Adjusted EBITDA	~18.5x trailing Adjusted EBITDA
Closed on December 31	Closed on October 15

Collectively <10% of Consolidated Revenue

= ~$1.25B After-Tax Proceeds

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Reset balance sheet / capital structure

Net Debt of $0 at 12/31/20

Targeting a long-term leverage ratio of ~1.5x Adjusted EBITDA

Repurchased $280M of stock in 2020 via open market

and accelerated programs

Expect to repurchase a significant amount in 2021

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Looking ahead to 2021

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Allscripts is well positioned to help solve some of the most pressing issues in healthcare

• Focus on the consumer
• Physician burnout

• Interoperability

• Coordinating care communities

• Genomics going mainstream
• Value-basedpayment
• COVID-19pandemic

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O U R V I S I O N : O P E N , C O N N N E C T E D C O M M U N I T Y O F H E A L T H

Connecting data sources across the community to improve the health of entire populations

Scale: 3rd Largest HIT	R&D: >$1.5B spend
Patents: 150 since
Company
2016

Interoperable:		Open: ~4B API
>2,700 ambulatory
	transactions over
facilities and >1,000
	past 2 years
hospitals

Veradigm: Adjacent Growth Platform

Relevant: Breadth and Depth

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Veradigm's unique data assets,

analytics and last mile connectivity are

a competitive advantage

Proprietary Data	Unique	Profitable	Agile & Poised
Sources at Scale	Point-of-Care	and Scalable	for Rapid Growth
Cross-platform data sources	Presence	Foundation	Investments and growth
at scale and includes	Clinical and Business of	• Opportunity for margin	strategies aligned
analytics and insights for Life	improvement and	with where market
patient care embedded in
Sciences & Payer	efficiencies	growing the fastest
the workflow
	• Primarily recurring

& subscription and

transactional revenue

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Financial "Flywheel" rebuilt in 2020 expected to

drive significant Yield in 2021

Highly Recurring	Significantly		Continued Focus on
Improved Free Cash	Returning Capital and
Revenue with Modest	Improved Adjusted
Flow Conversion	Investing for Growth
Organic Growth	EBITDA Margins
	in Existing Business

Targeting $90M-$100M

of Free Cash Flow in 2021

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Key investment highlights

We enable providers, payers and life science companies to optimize value at the point of care

Robust, diversified and award-winning solutions portfolio

Strong balance sheet with demonstrated capacity for capital returns

						Future growth
High recurring						opportunities
revenue model						distinguishes from
						EHR peers

Significant operating	Track record of
successful
leverage
capital deployment

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Appendix: Non-GAAP

Financial Measures

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Non-GAAP Financial Measures

This presentation includes references to non-GAAP revenue, Adjusted EBITDA, Adjusted EBIDTA margin and free cash flow, which are considered non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. Each of these measures are not considered financial measures under generally accepted accounting principles in the United States ("GAAP"). The definitions of these non-GAAP financial measures are as follows:

• Non-GAAPrevenue consists of GAAP revenue, as reported, and adds back recognized deferred revenue from acquired businesses and non-material consolidated affiliates that is eliminated for GAAP purposes due to purchase accounting adjustments.
• Adjusted EBITDA consists of GAAP net income (loss), as reported, and adjusts for: acquisition-related deferred revenue adjustments; depreciation and amortization; stock-based compensation expense; restructuring and other costs; non-cash asset and long-term investment impairment charges; gain on sale of business, net; interest expense and other, net; equity in net earnings of unconsolidated investments; and tax (benefit) provision.
• Free cash flow consists of GAAP cash flows provided by operating activities in the applicable period, net of capital expenditures and capitalized software costs.

Management also believes that non-GAAP measures provide useful supplemental information to management and investors regarding the underlying performance of Allscripts business operations. Acquisition accounting adjustments made in accordance with GAAP can make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP adjustments provided and discussed herein. Management also uses this information internally for forecasting and budgeting, as it believes that these measures are indicative of core operating results. In addition, management may use non-GAAP measures to measure achievement under Allscripts stock and cash incentive compensation plans. Note, however, that non-GAAP revenue and Adjusted EBITDA are performance measures only, and they do not provide any measure of cash flow or liquidity. Allscripts considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after capital expenditures and capitalized software costs. Free cash flow provides management and investors a valuable measure to determine the quantity of capital generated that can be deployed to create additional shareholder value by a variety of means. Non-GAAP financial measures are not in accordance with, or an alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Allscripts results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the definitions and reconciliations of non-GAAP financial measures with GAAP financial measures contained in the Appendix to this presentation. For the purpose of providing financial guidance, the company does not reconcile non- GAAP revenue, Adjusted EBITDA, Adjusted EBITDA margin or free cash flow to the corresponding GAAP financial measures. Allscripts does not provide guidance for the various reconciling items since certain items that impact these measures are either outside of its control and/or cannot be reasonably predicted. These are available on Allscripts investor relations website

(http://investor.allscripts.com).

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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Non-GAAP Reconciliation

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information - Adjusted EBITDA

(In millions, except percentages)

(Unaudited)

				Three Months Ended
	Sep-20			Jun-20		Mar-20
Net income (loss), as reported	$0.5	($7.5)	($20.4)
Plus:
Interest expense and other, net (a)	5.3	6.4	5.8
Depreciation and amortization	49.2	52.4	52.1
Equity in net (income) loss of unconsolidated investments	(0.4)	(16.8)	(0.2)
Tax provision/(benefit)		1.0		6.8		(0.3)
EBITDA	$55.6	$41.3	$37.0
Plus:
Acquisition-related deferred revenue adjustments	0.0	0.0	0.0
Stock-based compensation expense	10.7	7.6	11.1
Restructuring and other	13.3	27.6	9.1
Impairments (recovery)		1.2		0.6		0.0
Adjusted EBITDA		$80.8		$77.1		$57.2
Adjusted EBITDA margin (b)	20.1%	19.0%	13.7%

1. Interest expense and other, net has been adjusted from the amounts presented in the statements of operations in order to remove the amortization of the fair value of the cash conversion option embedded in the 1.25% and .875% Cash Convertible Notes and deferred debt issuance costs from interest expense since such amortization is also included in depreciation and amortization.
2. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue.

© 2021 Allscripts Healthcare, LLC and/or its affiliates.

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