Alight, Inc. · NYSE:ALIT
Alight — Investor Day (March 2025)
114 slides from Alight's investor day presentation, Mar 20, 2025
Slide 1: Investor Day, March 20, 2025
INVESTOR DAY MARCH 20, 2025 alight.
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, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements re
Slide 3: Financial definitions
Financial definitions Non-GAAP financial measures definitions Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and intangible amortization adjusted for the impact of certain non-cash and other items that we do not consider in the evaluation of ongoing operational performan
Slide 4: Agenda
@. . @ *, * . -« . . ’ * . % . ° * a A ® « fe ow . . e ote m ‘ « rE ae © . a “7. 7 2 @s . 8 . Pad 7 . . . . Enhancing the value proposition Enhancing the value proposition Third-party Alight strategic overview C) 9 9 Client Management & Delivery Technology evaluator Dave Guilmette, Allison Bassiouni
Slide 5: Alight strategic overview
Dave Guilmette Chief Executive Officer Alight strategic overview 5 | © 2025 Alight. All rights reserved. alight
Slide 6: What you should take away from today
~ ete ® v's - - . . @ « @ m today What you should take away fro r We are the market leader and are advancing our position through a focus on client-centricity & delivering with excellence Our integrated Alight Worklife® platform unifies the benefits ecosystem with unparalleled distribution across 35
Slide 7: Alight is a leading technology-enabled services company
Alight is a leading technology- enabled, services company We help 35 million people to be healthy and financially secure 7 | © 2025 Alight. All rights reserved. Note: As of 12/31/24
Slide 8: Alight's rich history pioneering the benefits industry
Alight’s rich history pioneering the benefits industry Foundatior Ed elds benefit Hewitt and outsourcing AS i . administration busi actuarial services Hewitt Provide outsourced eping as efits and 401(k) programs proliferate 8 | © 2025 Alight. All rights reserved. Established total Acquires RealLife
Slide 9: Alight by the numbers
Alight by the numbers $2.4B revenue 92% recurring revenue 9 | © 2025 Alight. All rights reserved, SK+ clients ~70% of the Fortune 100 ~50% of the Fortune 500 Installed base 35M participants $1.5T defined contribution assets under administration
Slide 10: Alight's 9,000 colleagues power the benefits industry
Alight’s 9,000 colleagues power the benefits industry FORTUNE . =e a. an) ee . . light, AUL rights reserved. . ‘ . * 2 a Q ‘e* : @ * ali ht . ae ee ee ee oe ~ : . . e e ® ee : @ . ® oad « . eo. cee &. . . . —". Se - .
Slide 11: What is Employee Benefits Administration?
What is Employee Benefits Administration? cas + alight « ee Clients and Carriers, third parties participants and fund managers Enrollment and Compliance: Supporting benefit Vendor management: Problem resolution: communication: Assisting program compliance with federal Working with insurance Addressi
Slide 12: We uniquely unify the benefits ecosystem
We uniquely unify the benefits ecosystem Wellbeing Navigation Combining deep domain Se ont BENEFITS EXPe, Pa . v 75 Leaves expertise with 625) - i ai A market-leading Customer care Client success techno eye) y ixe) Health > . solve real human CO customer as) challenges nt . specialists al i oht ae)
Slide 13: Integration of solutions leads to optimal client outcomes
Integration of solutions leads to optimal client outcomes Are employees engaging Is it resulting in an improved What impact is it having on in their benefits? employee experience & wellbeing? the organization? EMPLOYEE ENGAGEMENT EMPLOYEE VALUE EMPLOYER VALUE Frequency of interactions T Employee exp
Slide 14: Industry veterans guiding Alight's transformed business
Industry veterans guiding Alight’s transformed business... TA Re | Dave Guilmette Jeremy Heaton Allison Bassiouni Deepika Duggirala Chief Executive Officer Chief Financial Officer Chief Delivery Officer Chief Technology Officer — Greg George Rob Sturrus Martin Felli Chief Commercial Officer Chief Cl
Slide 15: Experienced and refreshed Board of Directors
...paired with an experienced and refreshed Board of Directors AO Y Russ Fradin Dave Guilmette Bill Foley Mike Hayes Bob Lopes Siobhan Nolan Mangini Chairman Chief Executive Officer Director Director Director Director Vice Chairman Rick Massey Kausik Rajgopal Coretha Rushing Rob Schriesheim Denise W
Slide 16: Observations from my first seven months and how we are operating differently
Observations from my first seven months and how we are operating differently 16 | © 2025 Alight. All rights reserved.
Slide 17: Our industry is large and mission-critical
Our industry is large and mission-critical... * Long-term contracts (3-5 years) 5 O B = * Recurring revenue per employee per month * Long-tenured client relationships Alight’s TAM * Existing client whitespace of ~$7B can nearly quadruple revenue $9B+ Alight existing client opportunity $2.4B Alight 2
Slide 18: Structural tailwinds expected to drive growth
...with structural tailwinds that are expected to drive growth Top employer priorities #1 Maintain a healthy, productive and engaged workforce #2 Manage benefits spend and return on investment #3 > Attract and retain top talent of employees don’t Benefits are a top understand the driver in the war b
Slide 19: The new equation of benefits
The new equation of benefits Co | Perceived value / cost of benefits 19 | © 2025 Alight. All rights reserved.
Slide 20: Healthcare and employer benefits costs continue to rise
Healthcare and employer benefits costs continue to rise Projected 9-10% increase in healthcare costs through 2026! Over two-thirds of CFOs view the cost of health benefits as a e@ e significant concern? 27% 29% 30% 32% 1990s 2000s 2010s 2023 Employer benefits % of compensation costs 20 | © 2025 Alig
Slide 21: Powering profitable growth: client management and delivery
Powering profitable growth CLIENT MANAGEMENT AND DELIVERY . 21 | © 2025 Alight. All rights reserved. alig
Slide 22: Powering profitable growth: nail the basics
Powering profitable growth NAIL THE BASICS Renew Everyday program Domain expertise Trusted client advisor cultivating goodwill Get permission from sponsor and participant to do more Unaided awareness to help end-users in every moment Extend beyond “once-a-year” decision Increase client satisfaction
Slide 23: Powering profitable growth: best of breed, best of suite
Powering profitable growth BEST OF BREED, BEST OF SUITE * Land with best of breed solutions > expand into unmatched suite Matrix and breadth of capabilities is a differentiator * Resources and personal touch to help participants understand their benefits Measurable RO! helps clients bend cost curve
Slide 24: Powering profitable growth: platform advantages
Powering profitable growth PLATFORM ADVANTAGES * Value-based outcomes * Closing health gaps * Platform enables streamlined and connected experience Open architecture with expansion of APIs to pullin best-in-class partners Robust proprietary data powering self-service analytics & Al engines icht 24 |
Slide 25: A deeper look: AI is an early innings catalyst
A DEEPER LOOK Al is an early innings catalyst Empower colleagues Elevate clients Enrich participants 25 | © 2025 Alight. All rights reserved, Unlocking potential for all stakeholders alight
Slide 26: Our partnership strategy adds value across the benefits ecosystem
A DEEPER LOOK Our partnership strategy adds value across the benefits ecosystem Deepen commitment Transforming how Deliver innovation clients support their people Drive collaboration alight 26 | © 2025 Alight. All rights reserved. be }
Slide 27: Our strategy will drive higher-quality revenue growth
Our strategy will drive higher-quality revenue growth with margin and cash flow expansion Organic Adjusted Free Revenue Growth EBITDA Margin Cash Flow 46% ~30% £~$1B Cumulative (’25-’27) By 2027 By 2027 Double-digit annual growth MID-TERM FINANCIAL TARGETS 27 | © 2025 Alight. All rights reserved, .
Slide 28: Client management and delivery: enhancing the value proposition
28 | © 2025 Alight. All rights reserved. Allison Bassiouni Rob Sturrus Chief Delivery Officer Chief Client Officer CLIENT MANAGEMENT AND DELIVERY Enhancing the value proposition alight
Slide 29: What you'll hear today
a ; @ We uniquely integrate benefits solutions that optimize W h at Yo u LL outcomes for employers and participants hear today @ Greater operational efficiency & reduced manual efforts enable a stronger margin profile The integration of Client Management with Delivery is reinvigorating our already s
Slide 30: Our integrated team nails the basics daily for clients
Our integrated team nails the basics daily for clients 25) a — we CLIENT MANAGEMENT DELIVERY Strategic Account Lead Implementation & Administration Client Life Cycle Se od Customer Care Retention & Expansion Client Satisfaction Oversee top ~200 accounts Day-to-day operators ~100 colleagues Thousands
Slide 31: Our integrated team nails the basics daily for clients
Our integrated team nails the basics daily for clients —6!O oO CLIENT MANAGEMENT Strategic Account Lead Client Life Cycle Retention & Expansion Oversee top ~200 accounts ~100 colleagues 31 | © 2025 Alight. All rights reserved. . ~. * DELIVERY Implementation & Administration Customer Care Client Sati
Slide 32: Client Management is at the hub of operations
Client Management is at the hub of operations 32 | © 2025 Alight. All rights reserved. Trusted advisors with deep domain expertise Programmatic approach identifying expansion opportunities Foster and strengthen relationships
Slide 33: Alight serves many of the largest out-performers
Alight serves many of largest and most successful out-performers of the of the Fortune 100 Fortune 500 W/hutoZone labcorp ciNTAS Genworth FH HII @ INTERNATIONAL enere Southern 3 MOODY’S Company oe: « e ke » oht 33 | © 2025 Alight. All rights reserved. . — a = he é i —- @ * . _ alig ‘ . eo °@e¢ . eo
Slide 34: Programmatic approach to client management
Programmatic approach to client management Peer 298 PY Client needs Where we were Collaborating ‘one for future Trusted Advisor 360 Generalist Solution Specialists Actionable Insights Transactional Metrics = Value Scorecards Seamless Integration Multiple Touch Points Singular Accountability Partner
Slide 35: Our integrated team nails the basics daily for clients
Our integrated team nails the basics daily for clients Oo 6 CLIENT MANAGEMENT Strategic Account Lead Client Life Cycle Retention & Expansion Oversee top ~200 accounts ~100 colleagues 35 | © 2025 Alight. All rights reserved, . “. DELIVERY Implementation & Administration Customer Care Client Satisfact
Slide 36: Delivery is on the frontlines daily
Delivery is on the frontlines daily, optimizing client and participant value Wellbeing Navigation ENEFITS £. Wealth wt B Xp, ee we eRe, Leaves S20) A Sai EAlll Customer care Client success Health f) Retiree oe Customer &P support Delivery specialists 36 | © 2025 Alight. All rights reserved.
Slide 37: Serving participants in the channel that best suits their needs
Serving participants and clients in the channel that best suits their needs Save on tax filing and preparation services DESKTOP MOBILE EMAIL TEXT VIRTUAL ASSISTANT CHAT oe: « e ke » oht 37 | ©2025 Alight. All rights reserved. . — =; li : 4 i. @& * . e * alig
Slide 38: Enhancing delivery to optimize client outcomes and drive retention
Enhancing delivery to optimize client outcomes and drive retention Deliver with Uplevel customer Innovate via Al excellence care and automation Leverage advanced Al-driven automation Enhance operational efficiency Reduce manual efforts Deliver faster, more accurate results ee ao 4 7 ar , ‘ : ee « .
Slide 39: Enhanced delivery operating model
Enhanced delivery operating model HEALTH WEALTH NAVIGATION LEAVES RETIREE Matrix efficiencies driving cost savings Leveraging scale across solutions Focusing on innovation, satisfaction, efficiency and continuous improvement 39 | © 2025 Alight. All rights reserved, . *» .,
Slide 40: Shifting interactions to digital-only channel
Shifting interactions to digital-only channel 87% 86% 85% DIGITAL INTERACTIONS MIX FY23 FY24 FY25 YTD! * Disparate call center tools * Natural Language IVR * Analytics driven by people * Advanced channel analytics using Al * Client-centric teams * Specialty COEs balanced with client-centric teams 40
Slide 41: Automating the care experience
Automating the care experience POSITIVE OUTCOMES * Realistic, hands-on practice; depth of knowledge * Increased agent engagement and retention * Reduced training cycle time $ é + Stronger measurements of learner outcomes; increased preparedness Multimedia Role play Agent delivery methods simulators
Slide 42: Applying generative AI to configuration testing
Applying generative Al to the configuration testing process POSITIVE OUTCOMES . B Auto vs. manual updates Executing reduce defects and increase reconfiguration speed test aa Implementation efficiency drives client satisfaction + Expected to reduce manhours by Test plan ’ Identifying test generation
Slide 43: AI and automation yield positive outcomes
Al and automation yield positive outcomes for Alight and client INDUSTRY Self-service Driving client Better user Healthcare education paired employee experience with Al chatbot productivity WORKFORCE + 4 t 70,000% 125% 222K pts Peer . Call interaction Hours saved mproverent in Alight Worklife volume
Slide 44: Unified teams supporting adoption and retention
Unified teams supporting adoption and retention RENEW EVERYDAY etic Management 44 | © 2025 Alight. All rights reserved. . 3 - 7 seek” alight
Slide 45: How do we move the needle?
How do we move the needle? RENEW EVERYDAY 45 | © 2025 Alight. All rights reserved, Own the narrative Nail the basics Innovate for the future Strategic expansion => Clarify positioning as technology- enabled services company Consistent two-way ongoing communication Deliver on our commitments every da
Slide 46: Renew Everyday program
2 s al =. ~€ @ @ é e 0% ® ¢ Renew Everyday program FOCUSED ACTION THROUGH CLIENT LIFECYCLE PHASE 1 PHASE 2 PHASE 3 e e e Seamless onboarding In-depth utilization and Proactively initiate for new services with optimization analysis renewal discussions hypercare Independent review of client Evaluate c
Slide 47: Renew Everyday in practice
RENEW EVERYDAY in practice Case study with long-standing client Client workshop: In-depth utilization Adjustments Secured core Onboard Relationship and optimization based on client services new services with refresh analysis feedback hypercare EXISTING CLIENT STARTING IN PHASE 2 » PHASE 3 » PHASE 1
Slide 48: Renewals back on track, stronger retention expected
Renewals back on track, expected to drive“ stronger retention going forward 99% 95% ' 97% fo} Annual Revenue Retention ” 96-98% 2021 2022 2023 2024 2025E Mid-Term Annual Revenue Retention Contracts Renewed (~20-25% of base up for renewal per year) Contract Renewal Expectations Revenue retention in a
Slide 49: Key takeaways
a @ We uniquely integrate benefits solutions that optimize Key outcomes for employers and participants takeaways @ Greater operational efficiency and reduced manual efforts enable a stronger margin profile The integration of Client Management with Delivery is reinvigorating our already strong retent
Slide 50: Technology: enhancing the value proposition
y - Deepika Duggirala Chief Technology Officer TECHNOLOGY Enhancing the value proposition 50 | © 2025 Alight. All rights reserved. alight
Slide 51: What you'll hear today
What you’ll hear today 51 | © 2025 Alight. All rights reserved, a Our multi-year technology transformation differentiates Alight Uniquely positioned from investments to lead the industry forward Next steps will enhance the client value proposition alight
Slide 52: Multi-year technology modernization successfully complete
Multi-year technology modernization successfully complete FRONT-END BACK-END Developed Alight Worklife Platform Simplified Infrastructure Via Cloud Transformation 2020-2022 2023-2024 * Established integrated platform for all clients * Exited physical data center reducing capital intensity * One-stop
Slide 53: Significant progress since our last investor day
Significant progress since our last investor day = Completed cloud migration <—-~ Streamlined infrastructure connects ecosystem, improving performance ame Introduced Alight LumenAl Al engine creating cohesive Al ecosystem / \ Alight Worklife upgrades Four software releases with <= 200+ new features
Slide 54: Recent highlights of our continued innovation
Recent highlights of our continued innovation in HR and benefits Leaves experience integration Microsoft Teams integration New Health Pro experience and Symptom Checker Launched new leaves carrier partnerships API expansions with Workday Program optimization expansion Cloud transition Al claims and
Slide 55: Recent results continue to set the bar
Recent results continue to set the bar in the market 90% record digital CSAT 96% record digital annual enrollments 345 optimization integrations 62% clients that are using Al 6,000 legacy experiences retired Thousands of hours saved in config/test pilots alight
Slide 56: 2024 Annual Enrollment reflects modernization impact
2024 Annual Enrollment reflects the impact of our modernization Enhanced speed Driving value via Consistently and efficiency efficient and reliable experience through enrollment low-cost channel 99.99% 69% time performance Boosting client and participant satisfaction oe: « e ke » oht 56 | © 2025 Ali
Slide 57: Technology roadmap focused on adding value
We’re focusing our technology roadmap on adding value for our colleagues, clients, and participants Transform the benefits Power smarter Redefine service experience workforce strategies excellence alight Engagement | Insights | Automation powered by
Slide 58: AI transforming our business in multiple dimensions
Al is transforming our business in multiple dimensions and personas Transform the benefits experience Predictive benefits recommendations and Al Easy Enrollment Data-driven personalized content and “next best action” Power smarter workforce strategies Advanced anomaly detection for fraud protection
Slide 59: Delivering AI-enabled results across stakeholders
We’re delivering Al-enabled results across our key stakeholders Transform the Power smarter Redefine service benefits experience workforce strategies excellence \ly E - \ a vias co Average $500 benefits 66% faster processing 50% reduction in configuration cost savings with using automation for and t
Slide 60: Leveraging AI to redefine service excellence in call centers
Leveraging Al to redefine service excellence in our call centers Conversation Summary ‘The conversation was about withdrawing money from his 401k through a housing loan, | cnecifically asking about taxes, loan disbursement, and escrow closing. Luis had questions about the process, which Karen, the c
Slide 61: Leveraging AI on Alight Worklife
oe ee - ©@.: @ “@ ww @ Leveraging Al on Alight Worklifé to improve the employee experience of unpaid, job-protected le jor certain family and medical reasons. * Accurate, timely information for retrieval * Fosters unaided awareness for benefits offered * Enhances satisfaction from self-service resol
Slide 62: Leveraging AI to advance clients' people strategies
2 '* @& 7 ©@. + & “@ ww @ Leveraging Al to advance clients’ people strategiés alight Recommended Analytics Ask a question * Smarter, real-time insights * Gen Al recommendations that enhance decision-making and efficiency * Simplified analytics for HR teams reduces the need for extensive training * C
Slide 63: Data and AI applications extend our competitive advantage
Data and Al applications extend our competitive advantage 2025 Alight. All rights reserved. understand the participant and their personalized needs allows us to deeply * Technology transformation and Al have positioned us to both meet and , Which would enable us to enhance outcomes
Slide 64: Transform the benefits experience
Unlocking value for participants Transform the benefits experience Intelligent, connected experiences enable employees to unlock the full potential of their benefits every day. New Al-based benefit enrollment intelligence, guiding smarter choices and year-round benefits utilization Comprehensive lea
Slide 65: Power smarter workforce strategies
Advanced tooling and insights Power smarter workforce strategies Agile tools and predictive insights empower employers to turn data into action and amplify benefits ROI. New employer reporting and insights platform unlocking faster data and insights through Gen Al All-new personalized employer exper
Slide 66: Redefine service excellence
Al and automation Redefine service excellence Agile tools, predictive Al and automation elevate service delivery - enabling unparalleled speed, accuracy and service excellence. Expanded Al and RPA automation suite powering a new era of service delivery excellence at Alight Real-time Al-based guidanc
Slide 67: Key takeaways
Key takeaways 67 | © 2025 Alight. All rights reserved, a Our multi-year technology transformation differentiates Alight Uniquely positioned from investments to lead the industry forward Next steps will enhance the client value proposition alight
Slide 68: Third-party evaluator panel
Jamie Curcio Kathleen Dillon Mike Hager Founder President Managing Director Curcio Webb Herronpalmer Alterity Group Third-party evaluator panel icht 68 | © 2025 Alight. All rights reserved. alig
Slide 69: Driving sustainable growth
Greg George Chief Commercial Officer Driving sustainable growth 69 | © 2025 Alight. All rights reserved. alight
Slide 70: What you'll hear today
What you’ll hear today 70 | © 2025 Alight. All rights reserved, a We are executing with focus to deliver and drive growth in recurring revenue Our organization has the winning formula with the benefits advantage through our integrated solutions Our go-to-market organic growth levers are informed by
Slide 71: Our industry is large and mission-critical
-€@ ° . , ot ORO Bey oe" s Our industry is large and mission-critical * Long-term contracts (3-5 years) 5 O B = * Recurring revenue per employee per month * Long-tenured client relationships Alight’s TAM * Existing client whitespace of ~$7B can nearly quadruple revenue $9B+ Alight existing client op
Slide 72: Building a world-class commercial function
Building a world-class commercial function fs @ @ Attract top Enhance market Improve Rewire enterprise talent coverage operational rigor ARR focus ne. a ee 2 , . : 7% « : % « oht 72 | ©2025 Alight. All rights reserved. . % » | ., a a. & * . e * alig
Slide 73: 3-tier coverage model to capture market share
We leverage a 3-tier coverage model to capture market share... CLIENT MANAGEMENT Focused on client lifecycle; retention and value realization across top 200 accounts in TOP 200 partnership with sales executives SALES EXECUTIVE ENTERPRISE Dedicated coverage across all Enterprise 15,000 EE + and Mid-m
Slide 74: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 75: Go-to-market organic growth levers
Go-to-market organic growth levers Expand share of wallet Grow in mid-market Add net new large- Leveraging benefits market clients ecosystem . ‘Oe « ‘d 7k icht 75 | ©2025 Alight. All rights reserved. . < « -s . a a. & * . e * alig . ‘ . . »' e% ‘ ‘am * b e * © # @ . . * e re es . ° of”. e : %
Slide 76: Expanding the share of wallet
Expanding the share of wallet ~$1B UP-SELL UP-SELL Upgrading clients’ already deployed solutions CROSS-SELL Adding and integrating complementary non- CURRENT: < deployed solutions CLIENT ~$6B CROSS-SELL - ee a ae , * 7% . wits : r ~ 76 | © 2025 Alight. All rights reserved. . < « -s . H a a. & * . e
Slide 77: Key cross-sell opportunities
Looking deeper at some key cross-sell opportunities Yo 77 | © 2025 Alight. All rights reserved, ~ LEAVES 103% YoY Pipeline Growth T 30% Increase to Existing Client Contract Value ~10% Top 200 Clients Penetration Rate HEALTH NAVIGATION 133% YoY Pipeline Growth T13% Increase to Existing Client Contrac
Slide 78: Significant net new opportunity across key sectors
Significant net new opportunity across all key sectors Fortune 500 Consumer Tech, Media & Telecom ("TMT") Real Estate & Construction Energy, Utilities, Manufacturing & Industrials Healthcare & Life Sciences Financial & Professional Services 78 | © 2025 Alight. All rights reserved, f 12/3 474% YoY Pi
Slide 79: Recent large wins in practice
Recent large wins in practice Va 79 | © 2025 Alight. All rights reserved, Regional supermarket chain with 35k+ employees CLIENT SOLVING FOR Optimize healthcare costs, improve employee engagement and benefits appreciation ALIGHT ANSWER Strong integrated value proposition. Carrier agnostic and ability
Slide 80: Programmatic approach to driving growth through benefits ecosystem
Programmatic approach to driving growth through the benefits ecosystem Consultants, brokers and TPEs Experts who guide employers’ benefit strategies and plan recommendations Collaborate t Sales Pipeline 4 Win Rates Retention 80 | © 2025 Alight. All rights reserved. Insurance carriers and voluntary b
Slide 81: Alight Partner Network opportunity
« @.¢ e ve 6% ® § 2 '* @& 7 ©@. + & “@ ww @ Early stages in a growing market opportunity with the’ Alight Partner Network We have the attention of 35 Clients are looking to us to unify both the Extended capabilities enables us to million individuals relying on Alight benefits experience and buying p
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Slide 83: Key takeaways
Slide 84: Client panel
Slide 85: Financial overview and outlook
Slide 86: What you'll hear today
Slide 87: Track record of delivering strong financial results amidst transformation
Slide 88: Recurring revenue and US unemployment rate
– $600 – – $400 – – $200 – $0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 – Recurring Revenue (left axis) US Unemployment Rate (right axis)
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Slide 90: Mid-term financial targets
Slide 91: Core elements to value creation
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Slide 94: Incremental growth bridge to mid-term target
Slide 95: Non-recurring projects represent upside potential
Slide 96: Illustration of Alight's renewal cycle and retention
Slide 97: Core elements to value creation
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Slide 99: Long-term recurring revenue foundation is stronger
Slide 100: Core elements to value creation
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Slide 102: Technology and organizational transformation to drive margin expansion
Slide 103: Sustainable double-digit free cash flow growth
Slide 104: Core elements to value creation
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Slide 106: What you should take away from today
Slide 107: Appendix
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Slide 109: Adj EPS Modeling Considerations
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Slide 112: Revenue: Recurring Proforma Adjustments
Twelve Months Twelve Months Twelve Months Twelve Months Ended Ended Ended Ended December 31, December 31, December 31, December 31, ($ in millions) 2021 2022 2023 2024 Revenue: Recurring $ 1,753 $ 1,959 $ 2,141 $ 2,135 Proforma Adjustments 27 29 36 21 Recurring - adjusted 1,780 1,988 2,177 2,156 Pro
Slide 113: Adjusted EBITDA reconciliation
Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (in millions) 2021 2022 2023 2024 Net Income (Loss) From Continuing Operations (193) (140) $ (317) $ (140) Interest expense 179 121 131 103 Income tax expense (benefit)
Slide 114: Operating Cash Flow Conversion
(in millions) Twelve Months Ended December 31, 2022 2023 2024 Net cash provided by operating activities $ 238 $ 247 $ 193 Separation Costs - - 97 Proforma Adjustments 64 82 52 Net cash provided by operating activities w/ proforma adjs 302 329 $ 342 Capital Expenditures (131) (140) (121) Free Cash Fl