FINEOS : Chairman and CEO's Address to Shareholders

FINEOS Corporation Holdings Plc.	T [phone] | F [phone]
FINEOS House, EastPoint Business Park, Dublin 3 (Registered Office)	E [e-mail] | W www.FINEOS.com

FINEOS Corporation Holdings Plc 2022 Annual General Meeting

14 December 2022

FINEOS Corporation Holdings Plc (ASX:FCL), a leading provider of core systems for life, accident and health insurance carriers globally, is pleased to present the Chair's address and CEO presentation to be presented at the Company's AGM being held today.

Chair address

Good morning or good evening to everyone listening today. On behalf of the Board of Directors, I would like to welcome you to the 2022 Annual General Meeting of FINEOS Corporation Holdings plc.

My name is Anne O'Driscoll, and I am the Chairman of your Company and am pleased to chair this virtual Meeting today.

It is now just past 8 a.m. GMT, the nominated time for the Meeting. I have been informed that a quorum is present, and so I am pleased to declare the Meeting open.

Meeting flow

In terms of this meeting, I will introduce the members of the Board to you before I provide a short update on the business, including the key financial highlights for the 2022 financial year. This will then be followed by a more in-depth discussion of the Company's performance presented by our founder and CEO, Michael Kelly.

We will then progress to the formal business of the Meeting, where the resolutions presented in the Notice of Meeting will be put to shareholders for your consideration.

We will allow time for questions regarding the resolutions before proceeding to vote on the resolutions.

Board update

Before I introduce you to the Directors present today, on your behalf I would like to thank the Board for their wonderful efforts and contribution to the Company. We all have benefited from their tremendous insight and strategic guidance. I would also like to extend our thanks to Michael Kelly and his dedicated and talented management team and staff for their ongoing commitment and contribution to the Company as well as their successful execution of the many strategic milestones achieved over the past year.

Those Directors who are present in this virtual meeting include:

• Michael Kelly, Chief Executive Officer, who will also address you shortly;
• David Hollander, Non-executive Director;
• Gilles Biscay, Non-executive Director; and
• Martin Fahy, Non-executive Director and Chair of the Audit & Risk Committee.
  As we announced in October, to facilitate an orderly Board rotation, Mr Biscay and Dr Fahy will retire from the Board following this meeting.
  I would like to personally thank both Gilles and Martin for their valuable contribution and service to FINEOS over the many years they were associated with the business. After nearly 8 years on various FINEOS Group Boards, Gilles has witnessed tremendous change within FINEOS while Martin, who joined at a key time in the

Directors: M. Kelly, G Biscay, M. Fahy, D. Hollander, A. O'Driscoll

Registered in Ireland No. 639640, as a public limited liability company, VAT No. IE 8205721 A

FINEOS Corporation Holdings Plc.	T [phone] | F [phone]
FINEOS House, EastPoint Business Park, Dublin 3 (Registered Office)	E [e-mail] | W www.FINEOS.com

Company's history, provided valuable support in advance of our IPO and transition to operating as a listed entity. I would like to thank both for their contributions to FINEOS.

Also retiring from the Board this year was our CFO and Executive Director, Tom Wall. After 19 years of service with FINEOS, Tom stepped down from both roles on 30 September 2022. His duties and responsibilities as CFO have been passed to Susan O'Connor who commenced with the Company on 5 July 2022. The Board would like to thank Tom for his service to the Company and wishes him all the best for the future.

We also announced in October the proposed appointment of William J. Mullaney to the Board as an independent Non-executive Director. Mr Mullaney is a highly experienced US insurance executive who has extensive leadership experience and will bring FINEOS valuable insight and strong relationships in the US insurance industry. He has a successful career track record of growing profitable businesses and driving revenue and earnings growth in highly competitive and change intensive environments. If approved by shareholders, we would expect Mr Mullaney to commence with the Company on 1 January 2023.

Also present today are Natalie Climo and John McKnight, our Company Secretaries, and representatives of the Company's external auditors, Mazars including the signing partner, Lorcan Colclough.

Financial update

I am pleased to stand before you as Chairman knowing that FINEOS continues to maintain its very high standards and strong financial position since listing in August 2019. Total revenue in the year to 30 June 2022 was €127.2 million up 17.5% in the year and importantly, achieved previous guidance of €125m - €130 million. North America was the standout region for FINEOS in the past 12 months with revenue now accounting for 79.4% of total revenue, up from 45.0% in FY19.

It is a credit to FINEOS' team and products that we have been able to achieve such strong growth which has been underpinned by both cross-selling and up-selling to our existing customer base.

As you will remember, during the 2021 financial year we also made two acquisitions - Limelight in August 2020 and Spraoi in May 2021. I am pleased to announce that by the end of June 2022, Spraoi had been successfully integrated into FINEOS while the investment in Limelight's product range is ongoing. We remain confident that we will demonstrate further sales success with new customers and cross-sell wins in 2023 from the acquisition of these businesses.

Closing

We are grateful for the ongoing support of our shareholders and are very excited about our Company's strong future. We remain extremely confident in FINEOS'strategy, products and people and remain committed to our clients as we expand our platform and demonstrate its potential to both existing and potential new clients in 2023 and beyond.

I will now hand over to Michael for his CEO presentation.

Directors: M. Kelly, G Biscay, M. Fahy, D. Hollander, A. O'Driscoll

Registered in Ireland No. 639640, as a public limited liability company, VAT No. IE 8205721 A

FINEOS Corporation Holdings Plc.	T [phone] | F [phone]
FINEOS House, EastPoint Business Park, Dublin 3 (Registered Office)	E [e-mail] | W www.FINEOS.com

CEO address and presentation

Thank you, Anne. Welcome to everyone joining us on this webcast today.

As our Chairman mentioned in her address, I will provide you with an overview of some key financial and operational highlights of our 2022 financial year. I will then pass back to Anne for the formal business of the meeting.

Turning to slide 4 of the presentation, I am delighted to report that FINEOS achieved record financial results in FY22. Total revenue for the Group increased 17.5% from the prior year to €127.2 million, achieving our previously disclosed guidance range for FY22 of €125 million to €130 million. It was within this context that our high margin software subscription revenue jumped 34.2% to €53.8 million, demonstrating continued strong demand from our clients for our FINEOS Platform.

Services revenue grew by 7.4% to €71.4 million in FY22. This was a solid result despite some existing and potential clients delaying software investment funding because of COVID-19. In FY22 we maintained our strong margins at the gross profit level of 65.3% and achieved earnings before interest, taxes, depreciation and amortisation of €6.7 million, which was up €1.5 million or 28.8% from the prior year.

As at 30 June 2022, the Company carried no debt and had cash reserves of €44.3 million, up from €14.0 million the prior year. In the first quarter of FY22, FINEOS undertook an equity capital raise which continues to underpin the Company's strong financial position and provides strategic flexibility as we pursue our medium to longer term growth opportunities.

Slide 5 reflects some of the operational highlights from the fiscal year. In May 2022, New York Life - Group Benefit Services released an 'industry first', groundbreaking core software case study, in the group insurance industry. This explains how, in partnership with FINEOS, they have migrated and consolidated their business from multiple legacy systems onto FINEOS AdminSuite on the FINEOS Platform. This digital transformation case study was a very important milestone for FINEOS, which I will talk about later in this update.

Another highlight of the year was our ability to achieve revenue growth by executing our strategy to upgrade our clients from their on-premises FINEOS Claims systems to our cloud-based FINEOS Platform. Apart from securing these clients for the long-term, this gives us the follow-on opportunity for continued cross-sales of our FINEOS product suite and related services. We enjoy long term valued customer relationships and throughout our 60 strong global client-base we expect to see continued demand for additional product on the FINEOS Platform. In the southern hemisphere, we also expect to see movement towards cloud upgrades during calendar year 2023 and beyond.

Our people headcount (including contractors) remained relatively stable in FY22, increasing by less than 1% to 1,075 as of 30 June. These numbers are expected to reduce slightly in FY23 as we more efficiently use our talent across geographies and implement further automation efficiencies. Meanwhile, FINEOS experienced a strong employee retention rate of 88%, which we believe was a very good result during the fiscal year given the pent-up demand as the global workforce emerged from COVID-19.

During FY22, we completed the integrations of the two acquisitions made during FY21, Limelight and Spraoi. Spraoi's machine learning products bolster our FINEOS Insight and Engage capabilities. We expect a growing pipeline of cross-sale opportunities as we embed this technology into the FINEOS Platform. Investment in our FINEOS New Business & Underwriting product is continuing apace and is aligned with our sales pipeline and current customer deployments. These acquisitions have also opened opportunities for FINEOS to draw on new talent and we have appointed several of their leaders to fill open positions in our organisation.

Directors: M. Kelly, G Biscay, M. Fahy, D. Hollander, A. O'Driscoll

Registered in Ireland No. 639640, as a public limited liability company, VAT No. IE 8205721 A

FINEOS Corporation Holdings Plc.	T [phone] | F [phone]
FINEOS House, EastPoint Business Park, Dublin 3 (Registered Office)	E [e-mail] | W www.FINEOS.com

Slide 6 provides a picture of our revenue growth and mix over the past few years. At the end of FY22, our annual recuring software revenue was €56.4m and during the financial year our overall subscriptions revenue grew by 34.2%, which was ahead of our guidance for the year. As you can see, we are continually growing our software SaaS revenues at a faster pace than our professional services revenues. Software revenues have moved from 37.1% of total revenues in FY19 to 43.9% of total revenues at the end of FY22. This positive trend towards software SaaS revenue growth reflects the move from the old on-premise services dominated revenue model to the software SaaS product revenue model and we expect this trend to continue.

Slide 7 displays the revenue split across our main operating regions and how that mix is also changing. As you are hopefully aware, over the past number of years we have focused our investment strategy on growing our North American region. This is clearly paying dividends as revenue from this region has risen to 79.4% of total revenue, from only 45.0% in FY19. North America continues to be our most active region and leads the way in cloud upgrades and FINEOS Platform implementations.

I have included on Slide 8 further details of our groundbreaking case study with one of the largest North American insurers, New York Life - Group Benefits Service (formally Cigna Group Benefits). This case study can be found on our website (www.FINEOS.com) and explains how they have used FINEOS AdminSuite on the FINEOS Platform to transform their business, enabling the retirement of six legacy core systems so that FINEOS now supports their entire $4.1 billion policy portfolio for their nine million clients. This milestone achievement gives FINEOS a unique and powerful position in the employee benefits market, with no other vendor able to claim a complete transformation reference client on a full end-to-end modern, purpose built, platform for employee benefits.

It has been clear for some time now that insurance carriers in group insurance will have to move away from in-house legacy core systems and we believe FINEOS is uniquely positioned to take advantage of this opportunity. FINEOS is the leading pureplay end-to-end insurance software core platform provider for employee benefits in the life, accident and health insurance industry, and pleasingly we continue to serve over 60 carriers across North America, APAC and EMEA.

Slide 9 covers some of the initiatives and objectives we are focused on regarding our people and ESG. FINEOS has long recognised the value of inspiring innovation and collaboration as part of our culture so we can retain and attract talent. We are very proud this year to present our inaugural Environment, Social and Governance (ESG) report as part of our Annual Report. I will leave you to read the detail but as FINEOS is a software service company our carbon footprint is naturally low and, whenever possible, we limit our environmental impact. FINEOS employees enjoy a working from home model, with occasional visits to our offices when required. This has enabled us to reduce our travel footprint and we have embraced several energy and water saving practices to ensure we are taking care of our environment and fostering a positive people-centric, responsible, and collaborative culture.

Receiving industry recognition for our company, market, customer, and people achievements has been very satisfying as you can see on Slide 10. We value this recognition and see it as a way to measure and benchmark our company progress against our peers and other industry players.

In summary, turning to slide 11, we remain confident and well positioned operationally and financially to execute on our growth strategy into FY23 and beyond. In quarter one of FY23, we signed a contract with New Ireland Assurance for FINEOS Claims on the FINEOS Platform. This was a competitive selection and a great win in our home market. Furthermore, we continue our singular investment to research and develop our FINEOS Platform as the leading pureplay core software vendor in the employee benefits market. We now have a wonderful reference case study for our FINEOS AdminSuite on the FINEOS Platform from New York Life - Group Benefits Services. The employee benefits market in North America represents over US$200billion in premium income and many of the insurers in this market still rely heavily on their outdated mainframe core

Directors: M. Kelly, G Biscay, M. Fahy, D. Hollander, A. O'Driscoll

Registered in Ireland No. 639640, as a public limited liability company, VAT No. IE 8205721 A

FINEOS Corporation Holdings Plc.	T [phone] | F [phone]
FINEOS House, EastPoint Business Park, Dublin 3 (Registered Office)	E [e-mail] | W www.FINEOS.com

systems and we believe there is a significant growth opportunity ahead of us. Our strategy continues to be to grow in North America and use our leadership in this market to expand to become overall global market leader in employee benefits. We will also continue to increase our SaaS subscription revenue so it becomes the dominant revenue in our mix, delivering maximum value to you our security holders.

In terms of the outlook for the rest of this financial year we are on track with our guidance range on Subscription growth in the 20% range. We are continuing to see cautious decision making around spending but we are tracking to deliver within the lower half of our overall revenue guidance range of between €135 million to €140 million. In addition, we remain focused on reaching a free cash-flow position during FY24. As an aside for our Australian investors, FINEOS is currently not enjoying any benefit from a stronger US dollar as the Euro to US exchange rate has not moved significantly since when we provided our guidance.

So, in conclusion, and on behalf of my fellow Directors, I would like to thank all our clients, partners, and security holders in FINEOS. I would also like to acknowledge and thank our people for their contribution and continued focus and dedication. The many positive steps forward this year could not have happened without our great team.

We look forward to sharing our progress with you as we continue our journey and execute our mission to become the global market leader of core systems for group and individual life, accident and health, on a single technology platform.

I'll now pass back to Anne to commence the formal business of today's meeting.

For further queries please contact:

Investors

Ronn Bechler, Automic Markets

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About FINEOS:

FINEOS (ASX:FCL) is a leading provider of core systems for life, accident, and health insurance carriers globally with 7 of the 10 largest group life and health carriers in the US as well as 6 of the 10 largest life and health carriers in Australia. With employees and offices throughout the world, FINEOS continues to scale rapidly, working with innovative progressive carriers in North America, Europe, and Asia Pacific.

The FINEOS Platform provides customers full end to end core administration for group, voluntary and individual across life, accident, and health. The FINEOS Platform includes the FINEOS AdminSuite core product suite as well as add-on products, FINEOS Engage to support digital engagement and FINEOS Insight for analytics and reporting.

For more information, visit www.FINEOS.com

Directors: M. Kelly, G Biscay, M. Fahy, D. Hollander, A. O'Driscoll Registered in Ireland No. 639640, as a public limited liability company, VAT No. IE 8205721 A