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INVESTOR PRESENTATION Fall Investor Summit FORWARD LOOKING STATEMENTS This presentation contains forwardlooking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this


  1. INVESTOR PRESENTATION Fall Investor Summit

  2. FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward‐looking statements. Forward‐looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward‐looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward‐looking statements contained in this presentation are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond our control) and assumptions. Although we believe that these forward‐looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual results and cause them to differ materially from those anticipated in the forward‐looking statements, including, among other things, our opportunities and expectations for growth in the student lending, healthcare and other markets; anticipated trends and challenges in our business and competition in the markets in which we operate; our client relationships and future growth opportunities; the adaptability of our technology platform to new markets and processes; our ability to invest in and utilize our data and analytics capabilities to expand our capabilities; the sufficiency of our appeals reserve; our growth strategy of expanding in our existing markets and considering strategic alliances or acquisitions; our ability to meet our liquidity and working capital needs; maintaining, protecting and enhancing our intellectual property; our expectations regarding future expenses; expected future financial performance; and our ability to comply with and adapt to industry regulations and compliance demands. More information on potential factors that could affect the Company's financial condition and operating results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Annual Reports on Form 10‐K as filed with the Securities and Exchange Commission. Any forward‐looking statement made by us in this presentation speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward‐looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. 2

  3. INVESTMENT HIGHLIGHTS ‐ Dynamic, Disruptive Healthcare Technology Company Multi‐Pronged, Multi‐Year Contracted Revenue Growth Model $200B Healthcare TAM Growing Annually High Margin Recurring Revenue Taking Market Share from Legacy Incumbents The New Performant

  4. WHO IS PERFORMANT? • We are a technology‐enabled audit, recovery, outsource services and related analytics service provider in the United States to Healthcare, Government and Commercial clients • We identify improper payments, and in some markets, restructure and recover delinquent or defaulted assets and improper payments • Our clients operate in complex and regulated environments Our technology platform helps our clients improve their recovery rate and reduce • losses on billions of dollars of improper healthcare payments, delinquent state and federal tax and federal treasury, defaulted student loans and other receivables • We provide complex outsource services for clients across our various markets 4

  5. RETURN TO PROFITABILITY As Performant’s investment in major contracts enter steady state, overall movements • across all markets are driving a return to profitability in 2020 o Incremental growth continues to add onto a stable fixed cost base • Profitability highlights of 2019 → 2020 include:  Healthcare margin expansion through major contracts in Year 2 and 3 from implementation  Healthcare margin expansion from continued mix shift and growth in TPL reclamation  Overall continued growth in existing Healthcare contracts  Expected returns on $2MM+ investment in headcount in recovery and sustained growth in newer contracts  Conversion of Premiere acquisition to profitability  Ongoing reduction in corporate overhead via migrations off legacy platforms 5

  6. STRATEGIC LONG‐TERM GUIDANCE • PFMT 2021 goal of $200m of revenue and 20% margins will be achieved through rapid growth of our high margin healthcare business. Healthcare growth is being achieved through recurring revenue contracts with marquee customers o (e.g., United Healthcare, Centene, Blues Network Participants, CMS) Historically 50% of EBITDA translated to free cash flow o PFMT currently trades at 3x EBITDA based on our 2021 strategic targets o Beyond 2021, we expect to be able to continue to grow at a double‐digit rate for years to come o • Currently, on a 2021 basis, Performant largely trades at a significant discount to peers despite similar or better growth prospects Ticker 2019E Revenue ($M) 2019E EPS 2021E EPS 2021E EBITDA EV/EBITDA P/E PFMT $29.5 3.0x 8.2x $155.67 ($0.37) $0.14 HMSY $598.29 $1.32 $1.50 $225.9 15.1x 38.5x PRGX $171.78 ($0.04) NA NA NA NA ACN $39,573.00 $7.33 $8.72 $8,355.6 14.7x 22.4x ADS $7,791.00 $19.27 $25.66 $1,936.7 10.1x 5.2x HQY $287.24 $1.15 $1.59 $211.6 25.6x 23.2x Note: 2019E and 2021E values are analyst consensus estimates as of 9/12/2019 6

  7. GROWTH BEYOND 2021 Actively pursue additional opportunities to • service the private healthcare market. o Find and eliminate losses prior to payment for healthcare services, o Detection of fraud, waste and abuse in the public and private healthcare markets • Federal and state tax recoveries have grown meaningfully year‐over‐year, and the recovery of delinquent state taxes is seen as a growing source of revenue o According to the Center on Budget and Policy Priorities, an independent think tank, 31 U.S. states faced a total budget shortfall of approximately $46 billion in 2017 and 2018 Growing need for audit and recovery services in the public and private markets 7

  8. HEALTHCARE OPERATIONS

  9. HEALTHCARE ‐ THE OPPORTUNITY • Total U.S. Healthcare Expenditures expected to exceed $4 trillion by 2020 • Performant’s addressable market is approximately $200 billion that continues to grow annually COB STUDENT SERVICES LOANS • Some of the largest commercial and HEALTHCARE CMS MSP PROVIDERS government entities that are potential opportunities include: COMMERCIAL COMMERCIAL CLIENTS Centene o GOVERNMENT UHC CMS RAC (STATE & o FEDERAL) Blues Network o BACK-OFFICE Centers for Medicare and Medicaid (CMS) TREASURY/ PROCESSS o OUTSOURCI IRS CALL NG (BPO) Anthem CENTER DEFAULT o OMNICHANNEL PREVENTION CRM Actively capturing market share from legacy competitors 9

  10. HEALTHCARE PAYMENT INTEGRITY MARKET SIZING Inaccurate Expected 2019 % Inaccurate Payments Spend Employer Commercial ~$65B 6.0% $1,086B Sponsored Medicare ~$29B $357B 8.2% Advantage Medicare Fee-For- ~$32B $390B 8.2% Service Managed ~$44B $307B 14.4% Medicaid Medicaid Fee-For- ~$41B $282B 14.4% Service Performant’s market opportunity is between 10 and 15% of the total amount of inaccurate payments Source: 2018 Medicare FFS Supplemental Report, Dept. of HHS, CMS CERT/PERM Note: 10 Market-rate fee for comprehensive pre- and post-pay

  11. NATIONAL LEADER IN PAYMENT INTEGRITY MARKETS SERVED: CT, IN, KY, MA, ME, MI, Region 1 Commercial Government NH, NY, OH, RI, and VT CMS RAC National - DME, Home Region 5 CONTRACTOR Health & Hospice 3 of the 5 largest national health plans and multiple Blues and Commercial National Contractor to Regional insurers recover payments when Repayment COMMERCIAL Medicare should have 110 Million Commercial covered CMS MSP Center HEALTH been secondary. lives CONTRACTOR PLANS SOLUTION SCALE: Over 100 audit programs in all 50 states ESTABLISHED NETWORKS: DATA ASSETS: FOOTPRINT: 50 Managed Medicaid 4,000+ Providers 300 employees Plans in 40 states Data on over 200 1,500+ Carriers Million Eligible 6 offices across 50,000+ audits per month 3,000+ Group & Non-Group lives the nation entities 11 Healthcare 25

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