Slide 1: 4th Quarter and Full Year 2021 Earnings Presentation
Presentatio ings 4th Quarter and Full Year 2021 Earn Al b) Kejahe 2022 February 23
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-4ooking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not li
Slide 3: Growth strategy & results
Growth strategy & results alight
Slide 4: Solid foundation supports ongoing transformation into 2022 & beyond
Solid foundation supports ongoing transformation into 2022 & beyond Retention defined as prior year’s active client revenue compared to the following year. 4 Transformation metrics 02M S bookings target) 90M ue (117%) 7% Solutions Obps) Foundational metrics
Slide 5: Continued execution of our strategy
Continued execution of our strategy 1. FY21 results ahead of plan as technology transformation drives momentum * Total revenue growth, excluding Hosted, of +8.2% with BPaaS revenue +16.8% and Adjusted EBITDA’ +21.3% to $621M for the full year >) Alight Worklife platform driving outcomes * Apharmaceu
Slide 6: Alight Worklife: Enterprise-wide engagement platform
Alight Worklife: Enterprise-wide engagement platform that helps keep people financially secure and healthy Alight Worklife™ Enterprise-wide engagement platform & Clinical cloud Healthcare navigation Second opinion Clinical care Wellbeing cloud Wellbeing Alight Partner Network Employee communications
Slide 7: Employee Engagement Outcomes
Employee Engagement Outcomes
Slide 8: BPaaS driving key client wins & supports strong bookings and revenue growth
BPadS driving key client wins & supports strong bookings and revenue growth % of Revenue BPaaS Bookings ($M TCV) Under Contract +80% $143 ~75% : a 4Q20 4Q21 Historical 2022E Revenue (Projected) SAtYE Ingka Group, the largest Ikea retailer + New client for Global Total Rewards across 31 countries & 1
Slide 9: Financial results & outlook
Financial results & outlook alight
Slide 10: FY 2021 summary of consolidated results
FY 2021 summary of consolidated results * Continued strong BPaaS Revenue revenue growth, led by @ integrated value offerings Total Revenue $2.915B $2.728B +6.9% offered through Alight Worklif Revenue ex-Hosted $2.873B $2.656B +8.2% endl * Gross margin expansion BPaaS Revenue $390M $334M +16.8% in Em
Slide 11: 4Q summary of consolidated results
4Q summary of consolidated results Revenue Total Revenue Revenue ex-Hosted BPaaS Revenue Gross Profit % margin Adjusted EBITDA’ % margin * A reconciliation of this non-GAAP financial metric to its closest comparable GAAP metric is included in the appendix. " +20.0% +20.8% +14.0% +45.5% +590 bps +28.
Slide 12: Employer Solutions benefited from recurring revenue and margin expansion
Employer Solutions benefited from recurring revenue and margin expansion Employer Solutions Employer Solutions Employer Solutions Revenue ($M) Gross Margin Adjusted EBITDA" ($M) * 29% growth in 36.19 recurring revenue 1% ce * Seasonal nature of $610 28.7% $193 acquisitions impacted 4Q $144 results 4
Slide 13: Professional Services positioned for project revenue recovery in FY22
Professional Services positioned for project revenue recovery in FY22 Professional Services Professional Services Professional Services 4Q Highlights Revenue ($M) Gross Profit ($M) Adjusted EBITDA! ($M) Challenged project revenue environment due $96 $93 to COVID partially offset by recurring revenue
Slide 14: Capital structure updates enhance financial flexibility
Capital structure updates enhance financial flexibility Total Debt $4,072 $2,868 Adj. EBITDA’ $190 $621 Less Cash $460 $372 Less Capex $32 $114 Net Debt $3,612 $2,496 Free Cash Flow? $158 $507 * Total debt reduction of $1.2B during 3Q21 * Stable recurring revenue base drives strong free cash flow ge
Slide 15: Outlook (management expectations)
• • • 1 A reconciliation of this non-GAAP financial metric to its closest comparable GAAP metric is included in the appendix Note: This information is based on management’s current expectations and estimates, which are based in part on market and industry data. Many factors are outside the control o
Slide 16: Outlook (management expectations)
• • • • • Source: Investor presentation dated January 25, 2021 2 Original outlook excluded public company costs 3 A reconciliation of this non-GAAP financial metric to its closest comparable GAAP metric is included in the appendix. Note: This information is based on management’s current expectations
Slide 17: Appendix — Technology Overview and Non-GAAP Reconciliations
Appendix — Technology Overview and Non-GAAP Reconciliations alight
Slide 18: The Alight Worklife platform supports our integrated BPaaS offers
The Alight Worklife platform supports our integrated BPaaS offers... Business Process as a Service (BPaaS) combines SaaS capabilities and an automated service delivery model with data & Al. Our integrated engagement platform helps clients manage their total cost of people while improving outcomes fo
Slide 19: Adjusted EBITDA reconciliation
Successor Predecessor Three Months Ended Six Months Ended Six Months Ended Three Months Ended Year Ended December 31, December 31, June 30, December 31, December 31, (in millions) 2021 2021 2021 2020 2020 2019 Net Income (Loss) $ 72 $ (48) $ (25) $ (18) $ (103) $ 22 Interest expense 29 57 123 62 234
Slide 20: Segment profit reconciliation
Segment Profit (5) Successor Predecessor Three Months Ended Six Months Ended Six Months Ended Three Months Ended Year Ended December 31, December 31, June 30, December 31, December 31, (in millions) 2021 2021 2021 2020 2020 2019 Employer Solutions $ 193 $ 344 $ 274 $ 144 $ 533 $ 554 Professional Ser
Slide 21: Free cash flow reconciliation
S uc c e s s o r P re d e c e s s o r T h re e M o n t h s E n d e d S ix M o n t h s E n d e d S ix M o n t h s E n d e d T h re e M o n t h s E n d e d Ye a r E n d e d D e c e m b e r 3 1, D e c e m b e r 3 1, J une 3 0 , D e c e m b e r 3 1, D e c e m b e r 3 1, (in millions) 2021 2021 2021 2020
Slide 22: Adjusted Net Income reconciliation
Successor Six Months Ended December 31, (in millions, except per share data) 2021 Net Loss Attributable to Alight, Inc. $ (35) Conversion of noncontrolling interest (13) Intangible amortization 153 Share-based compensation 67 Transaction and integration expenses 13 Non-recurring professional expense
Slide 23: Adjusted diluted shares reconciliation
Six months Ended December 31, 2021 (1) Adjusted Net Income $ 168,392,496 Weighted Average shares of Class A common stock outstanding - basic 439,800,624 Exchange of noncontrolling interest units (2) 77,459,687 Impact of warrant exercises (3) 14,490,641 Impact of unvested RSUs (4) 7,007,072 Adjusted