Sage Abra Benefits Messenger Positioning and Pricing for Abra Business Partners

1. Sage Abra Benefits MessengerPositioning and Pricing for Abra Business Partners

2. Objectives • Bring you up to speed on the new Sage Abra Benefits Messenger solution so you can begin discussing it with your customers and prospects • What is Abra Benefits Messenger? • What customer problem does it solve and how does it work? • When will it be delivered? • How is it priced and how are we launching it? • What is the Abra Partner role?

3. Today’s Agenda • Market need • Sage Abra Benefits Messenger • Concept • Features & benefits • Requirements & compatibility • Carrier support • Overview of order, set-up and operations processes • Pricing and margins

4. Enrollment Data Management Process Planning & Analysis Plan Selection & Negotiation Admin Preparations Planning Data Verification Open Enrollment Period Employee Communications Initial/Annual Enrollments New Hires, Terminations, Life Events, Etc. Ongoing Changes Enrollment Changes Carrier Updates Data Entry Data Transfer Carrier Changes Take Effect

5. Benefits Enrollment Data Management • Common • Internal benefits admin is common in mid-size companies (50-1,000ee) • Complex • Typically use multiple providers/insurance carriers, driven by • Types of plans offered • Competitive ‘shopping’ for cost management • Enrollment data, formats, media & update schedules vary by carrier and plan • Costly • Errors in enrollment data between employer and carrier can be costly • Missed enrollments • Inaccurate billing by carriers • Premium – deduction mismatches • Consuming • HR dept. is often responsible for managing data updates with carriers • Most carrier data updates are still via paper, but many carriers are moving to require some form of electronic files

6. About 90% handle benefits in-house They offer a range of plans 66% offer 5 or more plans 69% use 3 or more carriers Abra Customer Base Benefits Profile

7. There is No Common Data Update Method How Do You Send Data to Your Carriers?

8. Sage Abra Benefits Messenger • BPO (business process outsource) service for Sage Abra HRMS • Automates communication of employee benefits enrollment data with insurance and benefit carriers: • Establishes the data exchange relationship with each benefit carrier on behalf of the Abra customer • Extracts the benefit enrollment data from the Abra HR database • Transforms (reformats) the data to the exact format required by each carrier • Transmits the data electronically (Internet) to each benefit carrier per the schedule determined by that carrier

9. Value Proposition – Abra Benefits Messenger

10. Other Key Selling Points • Supports virtually all carriers • Includes health, dental, vision, life 401(k), disability… • Pro-active carrier contracting • Respond to specific customer requests • Supports wide variety of data formats • Easy to set up and use • Only needs Internet connection • Technical details with carriers are handled • Automatic email confirmation and status notifications • Secure • SFTP & SSL, PGP encryption, authentication certificates • When combined with Abra HR and Abra BE, offers a complete benefits management solution

11. Insurance Carriers Employees Benefits Manager • Benefit Elections • Dependants • Beneficiaries • Life Events • Enrollment “Census” Data • Create and manage benefit plans • Analyze benefits data • Census reports • Benefit reconciliation reports • Liability reports Employees Abra End-End Benefits Data Management Solution Abra Benefits Enrollment Abra HR Abra Benefits Messenger

12. Sage Abra Benefits MessengerNuts & Bolts

13. Carrier Connectivity Process Abra Benefits Messenger Servers Insurance Carriers Benefits Manager Enrollment Information Abra HR + ABC Utility Required (AWC BE + ABC Utility optional) Transformed Data Confirmation Confirmation

14. Abra Benefits Messenger Utilities • Client side data capture utilities • Supplements Sage Abra to support information capture and transmission • Captures and stores additional employee data, dependent data, benefit plan data and carrier information • Coordination of benefits • Provider details • Policy number • Extracts and transmits data sets to central servers • Schedules and performs transmissions at specific intervals • Assists with configuration and trouble-shooting activity

15. Abra Benefits Messenger Overview

16. Abra Benefits Messenger Overview

17. Abra Benefits Messenger Servers • Server side components • Receive and respond to end users transmissions • Maintain a library of benefit carrier data interchange protocol requirements • Carry out data transformations according to the carrier requirements • Transmit formatted and secured data to benefit carriers: • EDI: ASC X12 834 standard and extended • ASCII: fixed, comma delimited, tab delimited, etc • XML • Dispatch confirmations and status messages to end user • Maintain operational logs to support history of activities

18. Set-up and Operations Process Order is placed Messenger Utility CD is sent to customer Customer installs Utility and begins 5-step process to become connected to benefit carriers Step #1: Sign Up Request - Welcome email. Introduction of steps and information to be confirmed. Step #2: Sign Up Verification – Customer verifies information with Registration key, Sage Abra Customer number, password. Customer receives email confirmation that sign up request is received Step #3: Testing Preparation – Customer receives email confirmation that carriers have been contacted. Customer sends test file Step #4: Carrier Testing – Test file to carrier verified. Step #5: Go to Production – email confirmation to customer that test file verified with carrier. Customer downloads the carrier transmission schedule for each carrier. Ready to go live!

19. Behind the Scenes • Abra Customer Service in St. Petersburg • Process the customer orders • Abra Technical Support in St. Petersburg • Customer contact and support for Data Utilities and transmission concerns • Abra Benefits Messenger transformation servers in Texas • Manage all transaction processes between customer and carriers • Abra Benefits Messenger CRM center in Virginia • Establish and manage all carrier relations • ID carrier formats, protocols, schedules

20. Requirements & Compatibility • Required: Abra HR • Optional: Abra Benefits Enrollment • Compatibility: v7.5 or v8.2 (or greater) • Internet connection • No additional hardware or software required

21. Carrier Support • List of supported carriers published to PRO • Carriers not currently supported will be added once order is placed (typically 2-3 weeks additional lead-time) • Establish relations • Create the transformation mapping • Bring up on server (testing and confirmation prior to processing customer data)

22. Partial List of Carriers (over 100 currently)

23. Sage Abra Benefits MessengerPricing & Marketing

24. Pricing

25. “Benefits Management Solution” Promotion Abra Benefits Messenger set-up fee 500 per carrier Abra Benefits Enrollment implementation partner determined

26. Partner Annuity – Abra Benefits Messenger • Annual service fee • 1st Year = 20% • 2nd and subsequent years = 10% • Set-up fees = 0% • Orders and billing will be directly between Sage and Customer • Partner annuities are paid from invoiced amounts

27. Partner Opportunities • Marketing and selling Abra Benefits Messenger!  • Current customer add-on’s • Part of Abra HRMS solution for new customers • Assist customers with Abra Benefits Messenger ordering (help collect required info and submit order form) • Customer benefits consulting opportunities, such as: • Benefits planning • Data management strategies, processes, etc. • Abra HR benefit plan definitions, etc. • Abra BE implementations

28. Abra Benefits Messenger Market Advantages • Expands Abra HRMS capabilities to be comparable with major service bureau offerings • ADP HR/Benefit Solution (Employease) • Hosted-only service; on-going fees • HR/benefits features $3-$6/PEPM + $5K-$8K implementation • Abra HRMS solution is cost-effective in-house/service combination • Positions Abra as fairly unique in HRMS market for <1,000ee • Ascentis is the only other HR software vendor offering similar • Limited - supports health, dental, vision plans • Abra Benefits Messenger is 40%+ less expensive • Easy, cost-effective add-on for installed Abra HR customers

29. Contact Your Abra RAM… • Questions regarding active opportunities – we will get answers right away • Other questions – email to RAM’s. We will try to include in the detailed training/FAQ in December

30. Questions?