seb corporate presentation

ver: October 2014

T ECHN

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Technology Enables Market Opportunities

v: May 2014

TITLE TEXT

Technology Enables Market Opportunities ‹#›

TECHNOLOGY ENABLES MARKET OPPORTUNITIES SAAS BUSINESS MODEL

BUILDING AND OPERATING FULL INTEGRATED BIG DATA MANAGEMENT SOLUTIONS

EMPLOYEE BENEFITS MANAGEMENT ● HEALTH CLAIMS PROCESSING ● BUSINESS PROCESS AUTOMATION

SMART EMPLOYEE BENEFITS INC. John McKimm 416-‐460-‐2817 john.mckimm@seb-‐inc.com October 2014

ver: October 2014

NOTICE

CAUTIONARY STATEMENT

This document is intended for informa1on purposes only. Statements made in this document may contain “forward

looking” informa1on about the company’s future business prospects. These statements – while expressed in good faith

and believed to have a reasonable basis – are subject to risk and uncertain1es that could cause actual results to differ

materially from those set forth or implied by such forward looking statements. Investors should consult a professional

advisor before making any investment decision.

PROPRIETARY NOTICE

All pages of this document contain informa1on proprietary to Smart Employee Benefits Inc. (“SEB”). This document shall

not be used, or otherwise disclosed to anyone other than the organiza1on or specific individuals to which this document

is delivered. This document shall not be duplicated, or transmiMed in any form by any means, or otherwise to anyone

other than the organiza1on without prior wriMen permission from SEB. This restric1on is applicable to all pages of this

document. SEB reserves the right to have the recipient return all copies of this document at any 1me.

REFERENCE

All data and sta1s1cs referenced in this document are sourced from various publica1ons from the insurance industry and

research organiza1ons including Fraser Group.

Technology Enables Market Opportuni=es 2

ver: October 2014

TABLE OF CONTENTS


SEB -‐ Our Business 4

SEB -‐ What are Health Benefits? 5

SEB -‐ Industry Dynamics/Ripe for Change 6

SEB -‐ Canadian Group Benefits Industry 7

SEB -‐ Technology Systems & Exper1se 8

SEB -‐ Compe11ve Advantage 9, 10

Health Benefits Technology 11, 12

Health & Wellness Technology 13 -‐ 16

Disability Technology & Systems 17

Big Data – Predic1ve Analy1cs 18

Enterprise Service Bus Plaeorm 19

Health Claims Value Proposi1on 20

SEB -‐ Opera1onal Structure 21

SEB -‐ Acquisi1on Strategy 22

SEB -‐ Client Acquisi1on Model within the exis1ng Industry 23, 24

SEB -‐ Revenue Models 25

SEB -‐ Company History 26, 27

SEB -‐ Acquisi1on Summary 28

SEB -‐ Board of Directors 29

SEB -‐ At a Glance 30

SEB -‐ Investment Highlights 31

SEB – Summary 32

ver: October 2014

SEB -‐ WHAT IS OUR BUSINESS ?

Providing Data Management Technology SoluKons That Automate Health Benefits AdministraKon and Benefits Claims Processing

Benefits Claims Processing and administraSon costs are 10%-‐15% of claims or premiums. SEB technology soluSons are focused on capturing this revenue


SEB is a SaaS company providing so[ware soluSons and services that manage and transact big data environments and automate business processes SEB’s technology soluSons support all benefit environments including employee group benefit plans and government funded plans, SEB’s two target markets

ver: October 2014

1) Employee Group Health Benefits (EsKmated at $36.0 Billion in 2013) ü Pooled Benefits (AD&D, Term, Disability, etc.)

ü Health Benefits (Drugs, Health and Wellness, etc.) ü Dental Benefits Note: Grew over 98% since 2002

2) Other Health Benefits (EsKmated at over $25.0 Billion for Government in 2013) ü  Government

ü  Workers CompensaSon Boards (12 in Canada, over $10.0 billion of claims) ü  Government Health Plans (Federal & Provincial) (Aboriginal, Dental, Drugs, Military, RCMP, etc.) ü  Hospitals, Private and Public ü  Crown CorporaSons

ü  Other ü  Travel Claims ü  Dental and PharmaceuScal AssociaSons ü  Big Pharma Drug Programs ü  Other (numerous other applicaSons)

Health Benefits Include Employer and Government Funded Benefit Programs

SEB -‐ WHAT ARE HEALTH BENEFITS?


ver: October 2014

ü  Massive Industry – health claims processing is a $60.0 billion industry, of which over $36.0 billion is employee group benefit premiums and over $25.0 billion is other health claims processing transacSons.

ü  Archaic, Inflexible, Fragmented Technology SoluKons – there is no fully integrated technology plahorm for processing health claims. Old mainframe environments manage over 70% of the adjudicaSon technology. MulSple technology service providers. Many manual systems. Opportunity to automate and integrate processes.

ü  No IncenKve to Innovate – all costs are passed on to the client annually, parScularly in group benefits. There is minimal incenSve to improve core technologies, parScularly adjudicaSon.

ü  Outsourcing The Norm – over 85% of adjudicaSon services are outsourced. Much of administraSon is also outsourced, parScularly in the group benefits industry. Major Insurers outsource much of their adjudicaSon and administraSon in health benefits industry.

ü  Recession-‐Resistant Annuity Revenue – group benefit premiums grew over 98% since 2002 with steady growth rates even during recession. Other health claims expenditures are equally recession-‐resistant.

SEB -‐ INDUSTRY DYNAMICS / RIPE FOR CHANGE

Health Benefits industry is ripe for change Industry is dominated by a few Insurers and several technology players Minimal incenKve to invest in core back office systems Costs are passed to clients, annually Clients want more choices and beaer informaKon


ver: October 2014

Top 10 Insurers : Control over 95.5% of Market. Only Blue Cross and Greenshields have their own dedicated adjudica=on plaGorms. Group Health Benefit Premiums grew over 98% since 2002

Note: 8 of the top 10 Insurers outsource much of their adjudica6on and administra6on.

TPAs: Process Approximately 16% of Employee Group Benefits Market, and Growing

Outsourcing Services: Outsourcing is the industry. Insurers and TPAs use the same outsourcing parSes. Two adjudicators control over 70% of the market for drug and dental adjudicaSon using 30 year old technology.

SEB – CANADIAN GROUP BENEFITS INDUSTRY

(Employer Funded) … Dominated by Three Insurers and Two Adjudicators

Insurers 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sun Life 13.10% 21.20% 22.30% 20.80% 21.20% 21.80% 21.80% 21.00% 21.90% 23.00% 22.30% 21.80% 22.30%

Great West Life 18.30% 18.40% 25.90% 23.30% 22.90% 22.50% 22.10% 22.30% 22.10% 22.90% 22.10% 21.70% 21.10%

Manulife Financial 11.50% 11.10% 11.80% 22.90% 22.70% 21.80% 21.50% 21.00% 21.00% 21.10% 20.00% 21.40% 21.00%

Blue Cross 9.80% 10.20% 10.90% 10.20% 9.60% 10.60% 10.60% 10.50% 10.60% 10.70% 10.40% 10.10% 10.00%

Dejardins Financial 3.90% 4.20% 5.00% 4.80% 4.90% 5.10% 5.60% 5.90% 5.80% 6.10% 6.10% 6.00% 6.30%

SSQ Financial 3.20% 3.50% 3.90% 3.80% 3.90% 3.90% 3.80% 3.90% 4.00% 4.20% 4.20% 4.30% 4.60%

Greenshields N/A N/A 3.30% 3.40% 3.40% 3.50% 3.40% 3.60% 2.90% 3.60% 3.70% 3.90% 4.10%

Industrial Alliance N/A 2.50% 2.80% 2.60% 2.60% 2.70% 2.70% 2.90% 3.60% 3.10% 3.10% 3.00% 2.80%

Standard Life N/A N/A 2.10% 2.00% 2.10% 2.10% 2.10% 2.20% 2.10% 2.20% 2.20% 2.10% 2.00% Acquired by Manulife

La Capitale N/A N/A N/A N/A N/A N/A N/A N/A 1.20% 1.30% 1.30% 1.40% 1.50%

Clarica Life 8.80% Acquired by Sun Life -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

MariSme Life 8.30% 8.10% 12.00% Acquired by Manulife -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Canada Life 6.40% 6.30% Acquired by Great West Life -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Liberty Health 3.10% 3.10% Acquired by MariSme Life -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Cooperators N/A N/A N/A 1.40% 1.40% 1.30% 1.30% 1.20% N/A N/A N/A N/A N/A

Total Premiums (B) $18.00 $19.70 $21.00 $22.40 $23.70 $25.30 $27.20 $29.10 $30.20 $31.20 $32.70 $34.80 $36.00


ver: October 2014

SEB – TECHNOLOGY IS OUR COMPETITIVE ADVANTAGE

Systems IntegraSon

and Specialty IT

PracSces ExperSse

support Unique

So[ware SoluSons.

Professional Services

capability ensures

availability of

technical resources.


Sokware SoluKons, Systems IntegraKon ExperKse, Specialty IT Skills, Professional Services – CriKcal Ingredients in Tying Legacy Systems to New Technologies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Staff%Augmenta,on%

•Time%&%Materials%

•Project%Teams%

•Training%•Perm%Placement%

Job%Boards%

•Domes,c%

• Interna,onal%HR%Technology%Solu,ons%

•VMS%

•ATS%Call%Centre%Support

SaaS#SOFTWARE#SOLUTIONS#&#SERVICES

Technology#Solu;ons#Technology%PlaEorm%

• Administra,on,%Adjudica,on,%

Payment%Processing,%Repor,ng%

(Supports%ASO%Plans%at%all%

levels,%Most%detailed%Plan%

Designs%in%Industry)%

Disability%PlaEorm%

Wellness%PlaEorm%

Big%Data%Analy,cs%Models%!Technology#Applica;ons#TPA%Services%

Brokers/Consultants%

PBM%Services%

• Drug%Warehouse%

• Online%Sales%

• eBay%for%Prescrip,ons%

• Independent%Drug%Stores%

• Associa,on%Services%

Data%Services%

• Drugs,%Marke,ng%Informa,on%

Custom%Solu,ons%

• Reinsurance,%EAP,%(US%and%

Bri,sh%Insurers)%

• Interna,onal%Students%

• Portals

SYSTEMS#INTEGRATION#&##SPECIALTY#IT#PRACTICES

PROFESSIONAL#SERVICES

Supply%Chain%

•Retail%•Manufacturing%

•Financial%Services%•Government%

•Energy%SoTware%&%Solu,ons%Systems%Integra,on%&%SoTware%

Development%

Managed%Services%/%BPO%

Specialty%Prac,ces%

•ERP%(Oracle,%PeopleSoT,%SAP)%•Security%•Training%(PRINCE2®),%etc.%• ITIL%•Business%Intelligence%•CRM%

•BizTalk%Integra,on%Services%•EDI%Cer,fica,on%•Vendor%Roll]Out%Services%•Compliance%Services%

•Hosted%Services%Healthcare%Solu,ons%

•Support%Environment%for%Health%

Benefits%Division%

Data%Warehouse,%BI,%and%Big%Data%

Analy,cs.%!

ver: October 2014

1)  Health Benefits AdministraKon and Claims Processing Plalorm – Modular, fully integrated, end-‐to-‐end AdministraSon/AdjudicaSon/Payments/Billing/ReporSng so[ware plahorm provided on a SaaS model.

2)  Health & Wellness Integrated Plalorm – Modules include content library, Personal Health Assessment, educaSon modules, over 80 apps for managing health iniSaSves, personalized report card & acSon iniSaSve, integrated reward plahorm, integrated organizaSon health assessment, prevenSon/intervenSon programs, integrated real Sme reporSng, personal health record, etc.

3)  Disability Management Plalorm – Modules include: Benefits & Disability Portal, Absence Management Module, Audit Workflow Module, Case Management Module, PredicSve AnalyScs Module. The Modules are implemented within a Best PracSces environment.

4)  Enterprise Server Bus (“ESB”) – Business Process Data Management Module for tying legacy data systems to new technology soluSons and automaSng access to legacy data.

SEB – FULLY INTEGRATED TECHNOLOGY SOLUTIONS & EXPERTISE

Modular Technology SoluKons – as an Integrated Environment or Stand Alone


Technology ExperKse – Extensive data management experSse including systems integraSon, business intelligence, so[ware development, CRM, BizTalk, PeopleSo[, BPO, ITIL, Big Data AnalyScs, Professional Services, HosSng, Project Management, etc.

ver: October 2014

The “Holy Grail” of Healthcare Claims Processing is the “AdjudicaKon

Technology”

Applicable to both

Employer/Plan Sponsor and

Government Funded Benefit Plans

SEB – HEALTH BENEFITS END-‐TO-‐END TECHNOLOGY SOLUTION

Fully integrated health claims processing technology plalorm. Totally automates benefits administraSon and adjudicaSon. Provides real Sme reporSng at the employee / individual / detailed benefit level in “one technology environment.” “Captures virtually 100% of the Back Office Services Revenue.”


ver: October 2014

SEB – HEALTH BENEFITS – ADJUDICATION IS HOLY GRAIL

SEB’s rules based plalorm allows trained administrators, not programmers to create and implement new rules without the rigors of typical so[ware development. Rules creaSon in all other plahorms is programmer driven. SEB’S adjudicaSon plahorm supports the most flexible and automated Benefits Plan designs in the industry.

SEB’s Rules Engine is

separate from the

AdjudicaKon Processing

Engine.

All other AdjudicaKon

Processing Engines

incorporate these rules

directly into the AdjudicaKon

Processing Engine.

Adj

udic

atio

n Fi

scal

Rul

es

Adjudication Plan Design Rules

Claims Adjudication Processing Engine (Adjudicates all Health & Dental Claims)

If/Then/Else = Answer

Claims Adjudication Processing Engine - Adjudicates all Health & Dental Claims

Unique Object Oriented Rules Plalorm Allows Total AutomaKon of Benefits AdjudicaKon -‐ Rules CreaKon and ImplementaKon Takes Minutes


ver: October 2014

Results

Loyalty &

Rewards Programs

Personal Health

Assessments (2)

Level 1

Level 2

Opt-‐in (automated)

On Demand

Personal Health &

Wellness

Strategy

Personal

RecommendaKons

Personal Wellness Wallet

Aggregated Health Assessm

ent Results

Reports

Analysis

Employer/Plan Sponsor

Interven

Kon/Preven

Kon

Programs

Aggregated

Health

&

Wellness S

trategy

Person

al Health

Assessmen

t Results

ExisKng Benefit Plan

(Data)

SEB – HEALTH & WELLNESS INTEGRATED PLATFORM

Content Rich, Fully Automated AnalyKcal/Delivery Environment Providing Fact Based, AcKonable Health and Wellness Data for Employees/Plan Members/Employers/Plan Sponsors/Insurers to Allow Health Improvement Strategies


Employer/Plan Sponsor & Personal InteracKve Modules

ver: October 2014

SEB – HEALTH AND WELLNESS FULLY INTERACTIVE MODULES

HEALTH RISK ASSESSMENT (HRA)

Risk StraSficaSon

Baseline results for individuals

+ corporate

Assignment Algorithm Educa6on Modules

Health Trackers SMART Goal SeBng/

Health Pledges

Health expert videos

Medica6on Reminders

Regular progress report for

individual +

corporate

PRIVATE, SECURE ACCESS

DASHBOARDS &

REPORTIN

G

On-‐line automated

Aggregated OrganizaSonal Assessment

Live health coach

PROACTIVE INTERVENTION MEASUREMENT PERSONALIZED REPORT CARD & ACTION

PLAN based on individual’s answers to HRA and sophisScated segmentaSon

Ongoing Communica6ons

INDIVIDUAL HEALTH

QuesSonnaires to uncover lifestyle status, risk factors

and condiSons

INTELLIGENT ALGORITHM PROVIDES PERSONALIZED ACTION PLAN

Credible Content Library

ORGANIZATIONAL WELLNESS INITIATIVES

Clinic in a Box Team Challenges

AGGREGATE REPORT PROVIDES OVERALL ORGANIZATIONAL HEALTH ASSESSMENT

ORGANIZATIONAL HEALTH

Modules Include: Content Library, Health Risk Assessment, EducaKon Modules, 80+ Unique Apps for Managing Health IniKaKves, Rewards Plalorm, Personal Health Record, PrevenKon/IntervenKon Programs, Real Time ReporKng


ver: October 2014

Benefits, STD & LTD

Providers Employees & Administrators

Administrators & Services Staff

PeopleSoft & Other HRIS

Systems Benefits, STD & LTD Provider

Systems

SEB – DISABILITY: FULLY INTEGRATED, AUTOMATED PLATFORM

Banyan/SEB Disability Management (“DM”) SoluKons -‐ the most automated in the industry. The DM industry is dominated by paper based manual systems. Disability claims cost employers billions of dollars, annually.


ver: October 2014

SEB – DISABILITY: ABSENCE MANAGEMENT MODULE

ABSENCE & INCIDENT NOTIFICATION

AnalyKcs & ReporKng HRIS IN

TERF

ACE

ROLE BASED SECURE ACCESS

PREDICTIVE ANALYTICS

INTUITIVE USER INTERFACE

ABSENCE & INCIDENT TRACKING

ABSENCE & INCIDENT MANAGEMENT

Casual

Income ProtecSon

Work Cover

InformaKon & CommunicaKon

OpportuniKes for ProacKve Management

HR IntervenSons

AccommodaSon

Stay at Work

EAP

Wellness

Auto-‐claim submission

Fully InteracKve, Automated Environment for Managing Short Term Disability Claims and Processes. Integrates Legacy Data with Real Time Data and ReporKng Allowing PredicKve AnalyKcs and ProacKve Claims Management.


ver: October 2014

SEB – DISABILITY -‐ AUDIT WORKFLOW MODULE

SCORING Key Performance Results

Assessors

Templates

People Results

Claim/Case Results

Enablers Results

InnovaSon & Learning

Absence Module

Case Management Module

Wellness Reports

Audit Module Ensures Integrity of the Disability Claims Process and Claims Payments InformaKon to Monitor Key Performance Indicators and Results


ver: October 2014

SEB – DISABILITY -‐ CASE MANAGEMENT MODULE

Automates Business Processes and Provides Specialized Document Management FuncKonality for Disability Management. Integrates Workflows and Provides Real Time Access to InformaKon. Manual Processes Characterize the Industry.


ver: October 2014

SEB – BIG DATA -‐ PREDICTIVE ANALYTICS MODEL

Model Contains Algorithms that Take Historical Benefits Claims Data and Creates PredicKve Models Which Allow Underwriters to Assess Short Term and Long Term Liability. CriKcal InformaKon In Establishing Premium, Reserves, and Making Decisions on Health Claims Issues.


ver: October 2014

SEB – BUSINESS PROCESS DATA INTEGRATION MODULE

ü  Manages and orchestrates all Hub and portal business rules and data integraSon.

ü  Service Oriented Architecture (SOA) can facilitate easy and quick integraSon with any system.

ü  Facilitates easy change management and setup of business rules with minimal or no programming.

ü  Comprehensive repository of business rules with version control and change management capabiliSes.

ü  Comprehensive audit and reporSng capabiliSes.

Enterprise Service Bus (“ESB”) Plalorm – Ties Legacy Data Systems to New Technology and Allows Real Time Access to Data Between Environments.


ver: October 2014

ü  Rules Based AdjudicaKon in one technology environment for all benefit types versus the industry norm of mulSple environments. Rules creaSon is an administraSon, not a programming exercise. Rules can be implemented on both an individual and group basis.

ü  A fully integrated technology environment that is the most automated in the industry and is able to implement and adjudicate the most detailed and flexible group benefit plan designs in the industry.

ü  AdministraKon sokware that is seamlessly integrated with adjudicaSon, payment processing and reporSng. Enhances efficiency for all users. Unique in the industry. Can be deployed as a module.

ü  ReporKng is the most detailed in the industry and the only plahorm with self service funcKonality including real Sme access to standard reports and data mining capability for customized reports.

ü  Technology SoluKons in Big Data AnalyKcs, Disability and Wellness that are unique in the industry. SoluSons are highly automated, user friendly, cost effecSve and offer immediate value add to clients.

ü  Technology ExperKse in Systems IntegraSon. Specialty IT pracSce areas, etc., that integrate legacy systems with highly automated, customized new soluSons.

You Can Only Manage What You Can Measure

PrevenKon is More

Cost EffecKve than Cure

Beaer InformaKon, Automated Processes Give

More Control Over and More Value for Each Health Dollar

SEB’s Technology SoluKons Provide the Most Flexible and Automated AdministraKon, AdjudicaKon, ReporKng, Business Process Outsourcing and Specialized Document Management Capability in the Benefits Industry

SEB – HEALTH CLAIMS VALUE PROPOSITION


ver: October 2014

SEB – OPERATIONAL STRUCTURE DRIVES ACQUISITION STRATEGY

SEB’s Back Office Environment provides the complete technology, financial and administraSon

infrastructure for all soluSons and services offerings in the Benefits Division

Technology Division supports Benefits Division Infrastructure, SoluSons, CustomizaSon

Technology Division Sales Channels

Benefits Division Sales Channels

Smart Employee Benefits Inc. Public Company (TSXV:SEB)

Back Office Environment (Sokware, Systems, AdministraKon, Infrastructure)

Sales/ConsulKng Environment (Client RelaKonships)

TPA Disability Management

TPA Health & Wellness

TPA Non Trustee Business

TPA Trustee Business

Government Outsourcing

TPA Students

Big Pharma Drug Programs

Big Data AnalyScs

Professional Services

So[ware SoluSons

Systems IntegraSon

So[ware Development

Outsourcing (BPO)

Back Office Environment is the Primary Profit Centre Front Office (SALES) Environments Drive Processing Revenue to Back Office


One technology plalorm drives mulKple revenue models

SEB’s Sales/ConsulSng Environment drives uniquely branded complementary sales channels, both in the employer and government funded

benefit programs

ver: October 2014

1) Employee Group Benefits:

ü  AcquisiKons/Investments/Joint Ventures: target profitable Third Party Administrators (“TPAs”), Benefit Consultants, and Insurance Broker organizaKons.

ü  ObjecKve: secure client relaSonships and transiSon many of the front and back office business processes to the SEB technology environment, effecSvely turning outsourcing cost centres to in-‐house profit centres.

ü  ORGANIC GROWTH: driven by transiKon of outsourced services to SEB’s technology plalorm.

ü  Client RelaKonships: Long term, low turnover.

2) Governments -‐ Federal, Provincial, Municipal: ü  AcquisiKons/Investments/Joint Ventures: target profitable Technology companies that have vendor relaSonships, security clearances, project references and unique “data management” technology experSse.

ü  ObjecKve: secure the business credenSals necessary to be eligible to bid compeSSvely. All government contracts are compeSSve RFP (Request for Proposal) processes.

ü  ORGANIC GROWTH: RFP driven, by new successful bids. Success increases as criKcal mass increases.

ü  Client RelaKonships: Long-‐term contracts.

One Technology Environment Drives All Business Models – Employer and Government

SEB – ACQUISITION GROWTH STRATEGY


ver: October 2014

Current Industry Model No Fully Integrated SoluSon

The SEB Business Model Fully Integrated Total Outsourcing SoluSons for Benefits

AdministraSon & Claims Processing

SEB’s TPA business model and technology plahorm provides a total outsourcing soluSon allowing SEB more influence over the outsourcing and insurer decision process and increases SEB’s outsourcing revenue parScipaSon.

Reinsurance, Stop Loss, Self Insuring

SEB Business Model Intended Ownership

Outsourcing revenue is 10% to 15% of premiums paid

Reinsurance, Stop Loss, Self Insuring

AcquisiSon of TPA’s & TransiSon of Outsourcing

SEB’s ObjecKve: Control the “Outsourcing” Decision, Capture 10% -‐ 15% of Claims Paid / Premiums Revenue Currently Being Paid for Outsourcing Services. Insurers and TPAs Outsource to the Same Providers, ParKcularly in AdjudicaKon.

SEB – CLIENT ACQUISITION MODEL/EMPLOYEE GROUP BENEFITS


ver: October 2014

1) Commission and ConsulKng fees ü  2% to 7% of premiums

2) Other Revenues (Stop Loss, Reinsurance, Special Services, etc.)

ü  Range from 1% to 5% of premium

3) Pooled Benefit Profit Sharing ü  Pooled Benefit profits for insurers are over 60% of premiums. There

are various strategies for sharing in this profitability that could capture significant porSons of this profitability

4) Group Buying Profit Sharing ü  CreaSng buying groups allows bever benefits pricing from Insurers

and opportuniSes to share savings

5)  Interest on Premium Deposits ü  Premium deposits typically range from $300 to $600 per employee

6) AdministraKon and Claims Processing – Health & Dental

ü  AdjudicaSon – Drugs & Dental – 4% -‐ 8% of claims ü  AdministraSon – up to 5% of premiums depending on benefit type ü  ReporSng – up to 1% of premiums

7) AdministraKon and Claims Processing – Pooled Benefits

ü  Range from 1% to 5% of premiums

Processing Revenue 10-‐15%

ParKcipaKng in UnderwriKng Profits

8) Health & Wellness Programs ü  Range from $35 to $100 per person per year. Gross margin

targets over 80%

9) Disability Programs ü  Disability issues costs companies billions of dollars annually.

Reenue model Sed to claims processed and technology fees.

10) Big Pharma Drug Programs ü  Revenue of $3 to $5 per transacSon processed. Gross margins

over 80%. ü  Program implementaSons -‐ $5,000 to $15,000 per drug (one

Sme). Gross Margins over 20%.

11) Data Mining / Big Data AnalyKcs ü  Data collected from an end-‐to-‐end plahorm allows high value

added data mining strategies. Gross margins over 80%.

12) PBM (Pharmacy Benefit Management) Services ü  Profit margins are over 50% of revenue

13) Systems IntegraKon, CustomizaKon of Technology SoluKons, Data MigraKons ü  Varies by project. Gross margin benchmarks are 35% to 50%

13) License, Maintenance, and CustomizaKon Fees ü  OpportuniSes exist to license and customize various aspects of

the SEB plahorm for government and employer unique applicaSons. Long term managed services/BPO opportunity.

Specialty Programs – Unique Revenue Models

The above revenue models can also apply in GOVERNMENT outsourcing contracts, although the primary focus is administra6on and claims processing for government.

Technology Revenues

Sales Revenues

SEB – TECHNOLOGY ALLOWS MULTIPLE REVENUE MODELS

Group Benefits Typical Employee Health Benefit Plan Cost ≥ $3,000 per Annum


ver: October 2014

Typical Benefit Plan Cost: $3,000 to $4,000 per employee

Revenue per Plan Member 10-‐15%: $300 to $600 per employee

AllocaSon of Benefit Premiums: Pooled 24% -‐ 30%

100% Dental 20% -‐ 22%

Drugs 40% -‐ 50%

Wellness 5% -‐ 15%

AdministraKon and AdjudicaKon Fees: 10% to 15% of Claims

Other Revenue Models: 5% to 10% of Premiums

Revenue per Employee/year: $300 to $600 per employee

SEB Proforma Profit Margins: Over 50% of each revenue dollar

Fully Automated Services Plalorm Supports High Profit Margins in both Employee Group Benefits and Government Funded Benefits.

SEB – PROFORMA REVENUE MODEL: TYPICAL EMPLOYEE GROUP HEALTH BENEFIT PLAN


ver: October 2014

December, 2010 July, 2012, via a CPC with concurrent financing of approximately $2 million Over $10.1 million since 2010, majority provided by insiders Acquired adjudicaSon plahorm for approximately $750,000 cash plus $7.5 million in milestone licensing fees; over $18.0 million has been invested in the fully integrated technology plahorm

1) Technology Companies ✓  Closed 5 AcquisiSons in 2013-‐14 ✓  TargeSng Closing one new AcquisiSon by November, 2014 ✓  TargeSng 2 Technology joint ventures by October, 2014

2) Health & Benefits Companies ✓  Closed one AcquisiSon in 2013-‐14 ✓  TargeSng 2 acquisiSons in 2014 (idenSfied and in negoSaSons) ✓  TargeSng 2 investments or joint ventures in 2014 (in negoSaSons)

3) All acquisiSons/investments are stand alone profitable enSSes

Incorporated:

Public Listing:

Capital Raised:

Acquisition of Technology:

Acquisition Program:

Corporate Timeline

Closing of RTO & $1.9M Offering @

$0.30/Unit

Closing of $554K Conv. Debt Offering

(2yr, 10%)

Acquires QLogitek for $2M in shares

Acquires SOMOS for

$325K in cash & 2.5M shares

Establishes $1M credit line

Closing $1M Conv. Debt Offering

(3yr, 9.75%)

Closing of $975K Conv. Debt Offering

(3yr, 9.75%)

Acquired AnSan

Professional Services for $450K and $400

VTB

Closing of $500K

Offering @ $0.40/Unit

Acquires 50% of Inforica Inc.

Closing of $1.1M Offering @ $0.35/

Unit

Acquires Adeeva/Meschino for $525K of shares and up to

$1M royalty

Closed $2.0 ConverSble Debenture ( 2 yr, 8.0%) 2012

2013

2014

Raises $2.1 MNew Equity, 78% from Insiders

Announces Agreement to

Acquire Paradigm $15.875 M

Announces Agreement to acquire 50% interest in Banyan $3.0 M Acquires

Stroma Services for $700K,

$300K VTB, 1.25M shares

Announces AcquisiSon of SEB

Benefits & HR

ConsulSng

SEB – COMPANY HISTORY


ver: October 2014

Closed Deals

SEB – ACQUISITION SUMMARY


At Acquisition

Qlogitek Feb, 2013 Supply Chain software business that provides and hosts software products which help manage supply chains. Select clients: LCBO, Rogers, PowerStream, Ricoh Canada, Infrastructure Ontario and Best Buy

1996 Mississauga 50 $4.0 M $5.5 M

SOMOS Mar, 2013 Management consulting and IT services and training company with extensive vendor arrangements with corporate and gov’t clientsSelect Clients: Federal Government and Ontario Government

1991 Ottawa 12 $7.5 M $10.5 M

Inforinca Inc.

Dec, 2013 One of the leading integration and professional services firms in Canada over 100 experienced professionals and extensive operations in India and DubaiSelect clients: Ricoh, Pizza Pizza, CIBC, Powerstream, etc.

2000 Mississauga UAE India

73 $2.0 M $5.5 M

Antian Professional Services

Mar, 2014 A turnkey communication and personnel service provider with over 30 years’ experienceSelect clients: Canadian Armed Forces and Department of Defense, Via Rail, CMHC and other Gov’t organizations

1982 Ottawa 4 $1.0 M $2.0 M

Stroma Service Consulting

Mar, 2014 Adeeva and James Meschino Health provide a fully automated "wellness" platform including content, wellness assessment, online videos, etc. Adeeva provides a suite of wellness supplement solutions

1996 Mississauga 5 $1.5 M $2.0 M

Jun, 2014 Stroma provides software, consulting, and training services as an IT Service Management companySelect Clients: Various Canadian health ministries along with other Federal/Provincial government departments, CMHC, Taylor Made Golf, Air Canada Jazz, etc.

2000 North Bay 27 $6.0 M $6.0 M

Total: 171 $22.0 M $31.5 M

Established Headquarters EmployeesAnnualized Revenue

Fiscal 2015 Target

DescriptionCompany Acquisition Date

ver: October 2014

Deals in Process -‐ Announced

RaKonale for Announced AcquisiKons: 1)  Paradigm – very profitable business with important client references in health care and government. Has complementary technology

experSse. Creates western Canada presence. Significantly improves “win probabiliSes” in government RFPs. 2)  Banyan – very profitable business with over 20 years of Disability Management (“DM”) experSse and the leading DM so[ware

soluSons in the industry. Integrates well with SEB technology soluSon. 3)  SEB Benefits & HR ConsulKng – brings criScal benefits consulSng experSse. 4)  Meschino Health & Wellness – enhances SEB’s health and wellness soluSons and experSse.

Target at Closing

Sept, 2014 Complete Disability and Rehabilitiation/Back-to-Work services company providing a superior combination of expertise and technology throughout the Canadian and Australian markets.

1990 Toronto 36 $10.0 M $12.5 M

Sept, 2014 Providing Consulting services in Benefits and Human Resources.

2014 Toronto Vancouver

4 $0.2 M $1.0 M

Sept, 2014 Health and Wellness Platform 2013 Toronto 5 $0.4 M $4.0 M

Oct, 2014 Management Consulting and IT Services company with extensive vendor arrangments with corporate and government.

1994 Regina Winnipeg

150 $24.0 M $26.0 M

Total In Progress: 45 $34.6 M $43.5 M

Total After Closing: 216 $56.6 M $75.0 M

EmployeesAnnualized Revenue

Fiscal 2015 TargetDescription Established HeadquartersCompany

Targeted Acquisition

Date

SEB – ACQUISITION SUMMARY


ver: October 2014

Ron Barbaro, Chairman of the Board Nancy Elliov (1) Keith Harris ChrisSne Hrudka Stephen Peacock (2) Joseph Iannicelli

Walter Simone, Vice Chairman Barry Walsh, Director John McKimm, CEO/Pres/CIO

LaSq Qureshi, President, QLogitek/

Independent Directors Non-‐Independent Directors

Over 500 years of experience and credibility in building and managing companies in technology, healthcare and insurance related business.

Notes: 1) Chair of Governance and CompensaSon Commivee. 2) Chair of Audit, Risk, AcquisiSon and Special Commivee.

John McKimm, CEO/Pres/CIO Robert Prentice, COO/CFO/Corporate Secretary Adam Jasek John Jackson Bruce Bell Dr. James Meschino Joseph Ricciuti (on Closing – SEBCON) Maria Vandenhurk (on Closing-Banyan) Mark Hustak (on Closing – Paradigm)

ExecuKve Management

SEB – EXECUTIVE MANAGEMENT & BOARD OF DIRECTORS


ver: October 2014

Note: DiluKon at the lowest exercise price brings over $15.0 million of new capital. Insiders own over 66% of the equity.

Offices Employees & Contractors Stock Market Symbol

\

TSXV: SEB

Share Price Shares Outstanding Market CapitalizaKon (12 month range)

Year Range: $0.32 to $0.73 Basic: 70.9 mm F/D: 95.7 mm Approx. $35.0 mm

Insiders

Public

Current: Mississauga, Oaawa Dubai, UAE and Hyderabad, India

Post AcquisiKon: Regina, Winnipeg, Vancouver. Virtual Network in Canada

Australia: Sydney, Melbourne, Virtual Network in Australia

Today: 119 in Canada, 42 in India 10 in UAE

Post AcquisiKons: Approx 300 in Canada plus Virtual Network of over 200 on demand consultants

SEB – AT A GLANCE


ver: October 2014

Insiders own over 66% of SEB’s issued and outstanding shares; and over 75% of the dilu=on from op=ons, warrants and conver=ble notes. Have a proven track record of building and managing companies u=lizing both acquisi=on and organic growth strategies. Over 500 years of experience with extensive relevant industry and business rela=onships.

SEB companies have leading, unique, proven, proprietary technology with the poten=al to cause major structural changes in the healthcare claims processing industry and create a new market presence. Turns cost centres into profit centres. Solu=ons and services are largely executed by technology. People component is low cost and easy to scale. The gross margins in health claims processing solu=ons, from a fully integrated plaGorm, are over 65%. Profit margins are over 75% of gross margins.

All acquisi=ons, completed, announced and targeted, are cash flow posi=ve.

Steady growth in health benefits over the past decade, even in a recession.

Minimal Capital Expenditures. Clients pay in advance for most services. Posi=ve Cash Float. Over $60.0 billion in premium and claims revenue for Canadian health benefits with over $36.0 billion in Employee Group Benefits Premiums and $25.0 billion from Government programs. Processing and administra=on fees range up to 15% of premiums or claims revenue.

Many acquisi=on/investment/joint venture opportuni=es in this fragmented industry. Owners looking for succession. Client Referral model.

TransiKon of Outsourcing to SEB Technology Organic growth driven by transi=on of clients obtained through acquisi=on/investment/joint ventures to SEB Health Benefits Technology plaGorm. Transi=on to SEB technology captures 10% to 15% of claims or premium revenue being paid to third par=es for outsourcing services.

Insider Equity Ownership over 66%

Experienced Management and Board

Market Leading Technology Advantage

Predictable, Scalable, Cost Structure

High Gross Margin Business Model

Cash Flow PosiKve AcquisiKons

Recession Resistant Annuity Revenue

Minimal Working Capital Requirements

Massive Industry -‐ Health Benefits

AcquisiKon/Investment/Joint Venture Growth Model

SEB – INVESTMENT HIGHLIGHTS


ver: October 2014

SEB, through acquisition and organic growth initiatives, is

creating a global infrastructure of business and technology

expertise, supporting a highly customizable and scalable

“SaaS” business model around proprietary software

solutions driving annuity revenue streams, with a primary

focus on healthcare and health benefits administration.

TECHNOLOGY SOMOS

QLogitek

Inforica AnKan

Stroma

Paradigm (announced)

SEB – SUMMARY


BENEFITS SES Benefits

Adeeva

Meschino Health & Wellness Employee Health Direct

Banyan (announced)

SEB Benefits & HR ConsulKng (announced)

Game Changing Technology SoluSons For Employee Benefits AdministraSon and Health Claims Processing. SEB is an AcquisiSon Driven Business Opportunity with a Technology Advantage in an Industry Characterized by Old and Fragmented Technology SoluSons. AcquisiSons all contribute to consolidated profitability. Closed and announced acquisiSons consolidated sales are tracking in excess of $66.0 million (annualized).