Alight, Inc. · NYSE:ALIT
Alight — SPAC Merger (June 2021)
20 slides from Alight's SPAC merger presentation, June 2021
Slide 1: Investor Presentation June 2021
INVESTOR PRESENTATION Al IONS ight Solut June 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication includes certain “forward-looking statements” that are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of
Slide 3: Disclaimer (cont'd.)
Disclaimer (cont’d.) Additional Information about the Business Combination and Where to Find It In connection with the proposed business combination, a registration statement on Form S-4 (File No. 333-254801, as it may be amended or supplemented from time to time, the “Form S-4”) has been filed by A
Slide 4: The workforce is changing, and the future is all about the employee
The workforce is changing, and the future is all about the employee Healthcare Workforce Regulatory Affordability Total Wellbeing Mobility Globalization Compliance Healthcare 61% of workers 1 in 3 workers in 83% of companies 70+ updates deductibles growing cannot retire at alternative work are plann
Slide 5: Alight's mission-critical solutions enrich employee well-being
Alight’s mission-critical solutions enrich employee well-being, helping global organizations achieve a high-performance culture Help consumers Enable financial P Support Personalize d navigate the security and employers benefits healthcare wellness globally & payroll ecosystem Source: Company financ
Slide 6: The Alight Worklife platform supports our integrated BPaaS offers
The Alight Worklife platform supports our integrated BPaaS offers Our Business Process as a Service (BPaaS) model brings together SaaS capabilities and an automated service delivery model with data & Al, providing an integrated employee engagement platform to help clients manage their total cost of
Slide 7: Accelerating BPaaS growth with new product tiers in Health
Accelerating BPaaS growth with new product tiers in Health, driving better value and improved outcomes TIER 2 - Personalized recommendations TIER 1- Broad Comprehensive BPaas with recommendations digital engagement: Comprehensive BPaaS: * Pre-emptive claims-based * Broad benchmarking with recommenda
Slide 8: Multiple levers to drive top-line growth
Multiple levers to drive top-line growth One Alight Average uplift of 1.5x annual recurring revenue on bundled health BPaaS deals! Every 10% increase in cross-sell equates to $130M in revenue New logos Total addressable market of over $60B and just ~6% share in mid-market Every 1% market share gain
Slide 9: Progress tracking well since January 2021 merger announcement
Progress tracking well since January 2021 merger announcement * 1Q21 revenue and adjusted EBITDA modestly ahead of expectations; strong bookings growth TCV of total bookings TCV of BPaaS bookings oO Ss Q1’2020 Q1’2021 Q1’2020 Q1'2021 * Launched cloud-based Worklife platform 2Q21 * Nurse Navigation o
Slide 10: Appendix
Appendix alight
Slide 11: One Alight: Taking an enterprise lens to employee engagement
One Alight: Taking an enterprise lens to employee engagement and health, wealth, and payroll cc One Alight competitive advantage ———— Health Medicare Healthcare Wealth Cloud Global HCM cloud advisory administration enrollment navigation administration payroll payroll & deployment > i>?) eHealth AM a
Slide 12: Solid and diversified customer base with multiple sources of upside
Solid and diversified customer base with multiple sources of upside Long-term Highly recurring Profitable and sustainable Transformation Established embedded and diversified growth with significant drives significant platform with contracts revenue profiles and clear BPaaS benefit operating leverage
Slide 13: Significant upside as BPaaS becomes a greater portion of mix
Significant upside as BPaaS becomes a greater portion of mix BPaaS revenue 2017-2023E ($M) TCV of BPaaS bookings Ss, ae Q1’2020 Q1'2021 TCV of total bookings @_— nay Q1’2020 Q1'2021 2017A 2018A 2019A 2020A 2021E 2022E 2023E Future % BPaaS revenue’ 7 Excludes hosted business. BPaaS will accelerate im
Slide 14: Revenue benefits, cost reductions support margin expansion
Revenue benefits, cost reductions support margin expansion Gross margin a (1.6%) a (1.5%) (1.9%) 3.7% 2019 Investments M&A COVID Optimus & impact operating Revenue’ 7% leverage growth Investments: Technology and product investments ($38M)' M&A: Integration of Hodges-Mace, NGA, and Choice Health at l
Slide 15: Pro forma capital structure provides significant deleveraging and flexibility
Pro forma capital structure provides significant deleveraging and flexibility — Pro forma net leverage ratio! of 3.0x; 45% debt reduction provides $100M+ annual interest expense savings — Higher free cash flow enables continued investments in organic growth and strategic M&A — Reviewing opportunity
Slide 16: $7.3 billion Foley Trasimene transaction strengthens capital structure
$7.3 billion Foley Trasimene transaction strengthens capital structure Sources SPAC cash in trust $1,035 Forward purchase agreement 300 PIPE investment (incl. $250M from Cannae and $150M from FNF) 1,550 Existing Alight shareholders rollover equity 2,267 Rollover existing debt 2,276 Cash from balance
Slide 17: Financial summary
Financial summary Summary revenue build 2017-2023E ($M) Historical Projected $M, unless otherwise stated 2017A 2018A 2019A 2020A 2021E 2022E 2023E Subscription 1,635 1,712 1,830 2,050 2,075 2,230 2,509 Project 302 284 271 237 245 238 240 Employer solutions revenue 1,938 1,996 2,101 2,287 2,320 2,468
Slide 18: Financial summary (cont'd.)
Financial summary (cont’d.) Key financial items 2017-2023E ($M) Historical Projections $M, unless otherwise stated 2017A 2018A 2019A 2020A 2021E 2022E 2023E Memo: Total revenue 2,301 2,378 2,552 2,728 2,760 2,945 3,235 Employer solutions 756 773 726 802 889 1,099 Professional services 51 67 106 124
Slide 19: Financial summary (cont'd.): Reconciliation of historical financials
Financial summary (cont’d.) Reconciliation of historical financials $M, unless otherwise stated 2017A 2018A 2019A 2020A Net Income (Loss) $41 ($21) $22 ($103) Interest expense, net 114 208 224 234 Income tax expense 34 7 16 9 Depreciation 50 49 68 91 Intangible amortization 142 180 185 200 GAAP EBIT
Slide 20: Reconciliation of projected adjusted EBITDA
Reconciliation of projected adjusted EBITDA Reconciliation of projected financials $M, unless otherwise stated 2021E 2022E 2023E Net Income (Loss) pre-SBC" $9 $121 $221 Interest expense, net? 112 112 111 Cost to extinguish debt? 76 0 0 Income tax expense 3 42 78 Intangible amortization 201 201 201 D