Slide 1: Fourth Quarter Highlights and Financial Results Fiscal 2021
Fourth Quarter Highlights and Financial Results Fiscal 2021
Slide 2: Forward Looking Statements
Forward Looking Statements You should be aware that certain written and oral statements made by management may constitute “forward-looking statements” within the meaning of the safe-harbor provisions of the United States (“U.S.”) Private Securities Litigation Reform Act of 1995. Forward-looking stat
Slide 3: Paychex Overview
Paychex Overview • Integrated, cloud-based HCM platform A leading provider of integrated • Leading-edge technology human capital management solutions coupled with flexible (“HCM”) solutions for human service options resources (“HR”), payroll, benefits, and insurance solutions for small- • Leader in
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights 4
Slide 5: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 14% 18% 18% $0.72 $1,015M $354M $890M $0.61 $300M Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 (1) Adjusted Operating Income and Adjusted Diluted Earnings per Share (“EPS”) are not U.S. gener
Slide 6: Fourth Quarter Service Revenue
Fourth Quarter Service Revenue (In Millions) Key Drivers Management Solutions • Continued strong retention and client base growth $1,015 $958 • Increase in the number of client $890 employees throughout our HCM suite as businesses reopen and employment levels increase -6% +14% $703 $757 $662 PEO(1)
Slide 7: Fourth Quarter Business Highlights
Fourth Quarter Business Highlights • Achieved double-digit revenue and earnings growth o Solid growth in revenues across our main lines of business o Marked improvement in employment indicators during Q4 as the economy reopened o Adjusted operating margins expanded 160 basis points • Strong client b
Slide 8: Full Year Fiscal 2021 Financial Highlights
Full Year Fiscal 2021 Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 1% 2% 1% $3,997M $3.04 $3.00 $3,954M $1,493M $1,461M FY20 FY21 FY20 FY21 FY20 FY21 (1) Adjusted Operating Income and Adjusted Diluted EPS are not U.S. GAAP measures. Refer to slide 17 for
Slide 9: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Onboarding Self-Service Accelerates the speed-to-hire and lessens the administrative burden on businesses. This tool simplifies the experience and includes the ability to invite new hires to onboard and comple
Slide 10: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs Artificial Intelligence Data Analytics Expanded (including Paychex Flex Integrations (APIs) Intelligence Engine) Wearable Voice Personalization Solutions Recognition 10
Slide 11: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $3.00 $3.04 $3,954 $3,997 $2.84 $3.00 $3,692 $2.84 $2.55 $3,314 $991 $974 $2.55 $3,102 $814 $2.23 $556 $2.23 $422 $2.03 $2,878 $2,963 $3,023 $2,680 $2,758 FY17(2) FY18(2) FY19 FY20 F
Slide 12: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows May 31, 2021 May 31, 2020 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,127.3 $ 1,013.7 • Strong liquidity position with no Total Debt, Net of Debt Issuance Costs(1) $ 804.7 $ 801.9 net debt Return on Equity 38% 41% • $800M of private placemen
Slide 13: Fiscal 2022 Outlook
Fiscal 2022 Outlook
Slide 14: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook(1) Year-over-Year Growth Management Solutions Revenue ~7% PEO & Insurance Solutions Revenue 8% - 10% Interest on Funds Held for Clients Flat Total Revenue ~7% Adjusted Diluted EPS(2) 10% - 12% Anticipated Result (2) Adjusted Operating Income , as a Percent of Total Revenue ~
Slide 15: Financial Results
Financial Results 15
Slide 16: Financial Results
Financial Results For the Three and Twelve Months ended May 31, 2021 Three Months Ended % Twelve Months Ended % (In millions, except per share amounts) May 31, 2021 Change May 31, 2021 Change Management Solutions $ 756.4 14% $ 3,023.4 2% PEO and Insurance Solutions 258.3 13% 974.1 (2%) Total Service
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Twelve Months ended May 31, 2021 (In millions, except per share amounts) Three Months Ended Twelve Months Ended May 31, % May 31, % 2021 2020 Change 2021(1) 2020 Change Operating Income $ 353.8 $ 299.6 18% $ 1,460.7 $ 1,460.5 –% Non-GAAP Adjustments: Cos
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Twelve Months Ended May 31, % May 31, % ($ in millions) 2021 2020 Change 2021 2020 Change Average Investment Balances: Funds Held For Clients $ 4,219.5 $ 3,800.1 11% $ 3,941.9 $ 3,931.3 –% Corporate Cash Equivalents and Investments $ 1,124.1 $ 994.1 13
Slide 19: PAYCHEX: The Power of Simplicity
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 19