Slide 1: 3rd Quarter 2021 Earnings Presentation
ion Presentat ings 3™ Quarter 2021 Earn Al ? Kelahe 2021 November 9.
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking 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: Executing on our strategy
Executing on our strategy 1. 3Qresults ahead of plan as technology transformation drives momentum * Total revenue growth, excluding Hosted, of +4.3% with BPaaS revenue +19.8% and Adjusted EBITDA’ +15.9% to $153M for the third quarter 2 Alight Worklife platform & Alight Verify driving outcomes * Only
Slide 5: Alight Worklife drives new value for multiple personas
Alight Worklife drives new value for multiple personas Business Process as a Service (BPaaS) solutions leverage the Alight Worklife engagement platform with an automated service delivery model powered by data & Al to help clients manage their total cost of people while improving outcomes for employe
Slide 6: Rollout of Alight's new mobile app is driving increased engagement
Rollout of Alight’s new mobile app is driving increased engagement oan ‘a= alight a2 @ * 200k installs within 60 days of launch to 400+ clients It’s time to make your benefits choices. * Top 100 business apps in the Apple App Store * Integrating the fragmented HR ecosystem for clients with an averag
Slide 7: Leveraging the Worklife platform to rapidly support customer needs
Leveraging the Worklife platform to rapidly support customer needs * Alight Verify helps companies manage vaccine requirements and leverage data in driving business continuity decisions * Initial concept to finished, market-ready product live in just 8 weeks * Over 20 large employer sales committed
Slide 8: BPaaS driving key client wins & supports strong bookings and revenue growth
BPaaS driving key client wins & supports strong bookings and revenue growth % of Revenue BPaaS Bookings ($M TCV) Under Contract 95%+ $179 65%+ $126 3Q20 3Q21 2021E 2022E Revenue Revenue (Projected) (Projected) m= At YE20 = At3Q21 Royal Dutch Shell + Existing client adding new Global Payroll ‘Technol
Slide 9: Financial results & outlook
Financial results & outlook alight
Slide 10: 3Q summary of consolidated results
3Q 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. 10 $690M $680M $97M $238M 34.5% $153M 22.2%
Slide 11: Employer Solutions benefits from recurring revenue and operating leverage
Employer Solutions benefits from recurring revenue and operating leverage Employer Solutions Employer Solutions Employer Solutions 3Q Highlights Revenue ($M) Gross Margin Adjusted EBITDA’ ($M) * Growth across both recurring and Ba project revenues $587 _Qg- * Net commercial $559 activity driven by 3
Slide 12: Professional Services growth in recurring revenue
Professional Services growth in recurring revenue Professional Services Adjusted EBITDA’ ($M) Professional Services Gross Profit ($M) Professional Services Revenue ($M) $93 $93 Project $30 $24 $12 Recurring $4 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 * Areconciliation of this non-GAAP financial metric to its c
Slide 13: Capital structure updates enhance financial flexibility
Capital structure updates enhance financial flexibility Total Debt $4,072 $2,882 Adj. EBITDA’ $153 $431 Less Cash $460 $769 Less Capex $27 $82 Total Debt less Cash $3,612 $2,113 Free Cash Flow? $126 $349 * Total debt reduction of $1.2B during 3Q21 * Stable recurring revenue base drives strong free -
Slide 14: Note: This information is based on management's current expectations and estimates
• • • 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 of management, and actual results may differ materially from the information set forth above. Please refer to "Forward-L
Slide 15: Appendix — Non-GAAP Reconciliations
Appendix — Non-GAAP Reconciliations alight
Slide 16: Net Loss to Adjusted EBITDA
Successor Predecessor Three Months Ended Six Months Ended Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, (in millions) 2021 2021 2020 2020 Net Loss $ (120) $ (25) $ (39) $ (85) Interest expense 28 123 61 172 Income tax (benefit) expense — (5) 17 12 Depreciati
Slide 17: Cash Provided to Adjusted EBITDA Less Capex
Successor Predecessor Three Months Ended Six Months Ended Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, (in millions) 2021 2021 2020 2020 Cash (used for) provided by operating activities $ (7) $ 58 $ 111 $ 131 Interest expense 28 123 61 172 Income tax (benef
Slide 18: Weighted Average Shares Outstanding
Successor Three Months Ended For the period from September 30, July 2, 2021 to (in millions, except per share data) 2021 September 30, 2021 Net Loss Attributable to Alight, Inc. $ (107) Successor Conversion of noncontrolling interest (13) Weighted Average shares of Class A common stock outstanding -