Slide 1: Second Quarter 2022 Earnings Presentation
ion Presentat ings 24 Quarter 2022 Earn Al b) Kejahe 2022 August 3
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements within the meaning of Section 274A 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 l
Slide 3: Transformation in 2022 & beyond builds on solid foundation
Transformation in 2022 & beyond builds on solid foundation 2Q22 Transformation metrics 34M aS bookings mulative 28M venue .6% Solutions ‘Cumulative total since 1Q 2021. Foundational metrics entering 2022 230M people and dependents as of 12/31/21 and now reflects the addition of 6M+ Federal Thrift pa
Slide 4: Execution of our strategy
Execution of our strategy 1. Technology transformation drives 2Q22 results * Revenue growth, excluding Hosted, of +6.7% with BPaaS revenue +36.2% and Adjusted EBITDA’ of $142M 2 Increased client focus on employee engagement drove new client wins in 2Q * Strong BPadS bookings with $234M in TCV in 2Q;
Slide 5: New clients, like AutoZone, are choosing Alight to deliver increased healthcare savings
New clients, like AutoZone, are choosing Alight to deliver increased healthcare savings, employee retention and wellbeing utilization ) Healthcare savings as a percentage of fees Alight to provide integrated solutions from pre-hire to retire for a new client in the automotive parts & accessories ind
Slide 6: Earned Wage Access and Pay Card
Earned Wage Access gives employees access to their earnings as soon as they have earned them. Pay Card brings financial freedom to employees by providing a physical and digital pay card to receive their wages.
Slide 7: 2Q22 summary of consolidated results
2Q22 summary of consolidated results * Strong BPaaS revenue Ri ret and Employer Solutions ° revenue growth partially Total Revenue $715M $672M +6.4% offset by Professional Services Revenue ex-Hosted $705M $661M 46.7% * Acquisitions, as well as BPaaS Revenue $128M $94M +36.2% investments in Thrift co
Slide 8: Strong recurring revenue for Employer Solutions while making investments for future profitable growth
Strong recurring revenue for Employer Solutions while making investments for future profitable growth Employer Solutions Employer Solutions Employer Solutions cae Revenue ($M) Gross Margin Adjusted EBITDA" ($M) 2Q22 Highlights * 8.3% growthin > recurring revenue 9 eos 32.6% * Investments in $569 $61
Slide 9: Professional Services positioned for project revenue recovery in 2H22
Professional Services positioned for project revenue recovery in 2H22 Professional Services Professional Services Professional Services 2Q22 Highlights . . 1 Revenue ($M) Gross Profit ($M) Adjusted EBITDA! ($M) © Closed deals and pipeline expected to boost revenue $92 trajectory, gross sor profits a
Slide 10: Capital structure provides financial flexibility
Capital structure provides financial flexibility Debt Maturity Schedule as of 6/30/22 ($M)! See $2,500 2,467 Total Debt $2,840 $2,868 Less Cash $272 $372 $2,000 Net Debt $2,568 $2,496 $1,500 * Well protected in a rising rate environment with $1,000 hedging strategy * 70+% fixed rate debt portfolio f
Slide 11: 2022 guidance (over 90% of revenue under contract)
2022 guidance (over 90% of revenue under contract)" Key Factors * 3Qimpacted by 1) remaining $15M of $38M ($ millions) investment program, 2)$15M headwind from $3.09 - higher Employer Solutions project demand Revenue $735-750M $915-930M 3.128 Se ndiee +6-7% Adjusted $115-125M — $245-255M = $650 - 66
Slide 12: Adjusted diluted EPS and modeling notes
Adjusted diluted EPS and modeling notes Adjusted diluted EPS bridge thas 2022 Rates Additional Modeling Notes Adjusted EBITDA’ $650-662M See page 11 coe 5 * CapEx and W/C usage: ~4% of Depreciation & $80-85M ~3% of revenue revenue, respectively Amortization Interest Expense $120-130M Based on curren
Slide 13: Growing Cash Flow Profile
Growing Cash Flow Profile Operating Cash Flow conversion" Key factors 2021A One-time SPAC costs Increase in commission receivables due to retiree health exchange acquisition in 4Q21 Higher deferrals tied to larger client wins 2022E Higher investments to drive growth Higher deferrals tied to larger c
Slide 14: Appendix — Other / Non-GAAP Reconciliations
Appendix — Other / Non-GAAP Reconciliations alight
Slide 15: Adjusted EBITDA reconciliation
Successor Predecessor Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in millions) 2022 2022 2021 2021 Net Income (Loss) $ 52 $ 39 $ (4) $ (25) Interest expense 29 58 61 123 Income tax benefit (9) (8) (2) (5) Depreciation 18 35 25 49 Intan
Slide 16: Adjusted 2021 EBITDA
Adjusted 2021 EBITDA 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, Gn millions) 2021 2021 2021 2020 2020 2019 Net Income (Loss) $ R$ 8) | $ 25) $ (8) $ (103) $ 2 Interest expense
Slide 17: Segment Profit
Segment Profit (4) Successor Predecessor Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, (in millions) 2022 2022 2021 2021 Employer Solutions $ 147 $ 289 $ 138 $ 274 Professional Services (3) (3) 7 7 Hosted Business (2) (2) — (3) Total Adju
Slide 18: Adjusted Net Income and diluted EPS reconciliation
Three Months Ended Six Months Ended June 30, June 30, (in millions, except share and per share amounts) 2022 2022 Numerator: Net Income Attributable to Alight, Inc. $ 51 $ 40 Conversion of noncontrolling interest 1 (1) Intangible amortization 80 159 Share-based compensation 42 75 Transaction and int