Slide 1: First Quarter Highlights and Financial Results Fiscal 2022
First Quarter Highlights and Financial Results Fiscal 2022
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
• Comprehensive technology- Paychex Overview driven HCM software and solutions company • Leading-edge technology A leading provider of integrated platform backed by HR and human capital management compliance expertise (“HCM”) software for human resources (“HR”), payroll, benefits, • Leader in compre
Slide 4: First Quarter Highlights
First Quarter Highlights 4
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 16% 41% 41% $1,068M $443M $0.89 $917M $315M $0.63 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 (1) Adjusted Operating Income and Adjusted Diluted Earnings per Share (“EPS”) are not U.S. genera
Slide 6: First Quarter Service Revenue
First Quarter Service Revenue Key Drivers (In Millions) Management Solutions • Client base growth driven by strong retention and sales performance • Increase in the number of client $1,068 employees throughout our HCM suite $971 due to higher employment levels $917 • Higher revenue per client due to
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights • Achieved double-digit revenue and earnings growth o Strong internal execution with continued momentum in sales, marketing, and client retention o Positive trends in the macroeconomic environment reflected in growth in checks per payroll and increases in HR outsour
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Paychex Pre-Check A self-service solution that allows employees to review their paystubs and alert their employer of discrepancies before payday. Also, adds automation to payroll process for employers. Retenti
Slide 9: 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 9
Slide 10: Recent Awards and Recognition
Recent Awards and Recognition Paychex is being honored for its innovative technology and product leadership HR Executive Magazine Brandon Hall Group PLANSPONSOR Magazine Top HR Product of the HCM Excellence Award Recordkeeping Survey 2021 Year Gold Largest 401(k) Recordkeeper Excellence in Learning
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 $2,758 FY17(2) FY18(2) FY19 FY20 F
Slide 12: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows August 31, 2021 May 31, 2021 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,232.3 $ 1,127.3 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 804.5 $ 804.7 net debt Return on Equity 42% 38% • $800M of private plac
Slide 13: Fiscal 2022 Outlook
Fiscal 2022 Outlook
Slide 14: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook June 25, 2021 September 30, 2021 Fiscal 2022 Outlook Fiscal 2022 Outlook Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue ~7% ~8% PEO & Insurance Solutions Revenue 8% - 10% 8% - 10% Interest on Funds Held for Clients Flat Flat Total Revenue ~7% ~8% (2
Slide 15: Financial Results
Financial Results 15
Slide 16: Financial Results
Financial Results For the Three Months ended August 31, 2021 Three Months Ended % (In millions, except per share amounts) August 31, 2021 Change Management Solutions $ 805.5 17% PEO and Insurance Solutions 262.9 14% Total Service Revenue 1,068.4 16% Interest on Funds Held for Clients 14.5 (3%) Total
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2021 (In millions, except per share amounts) Three Months Ended August 31, % 2021 2020(1) Change Operating Income $ 442.9 $ 284.0 56% Non-GAAP Adjustments: Cost-Saving Initiatives (2) - 31.2 Total Non-GAAP Adjustments - 31.2 Adjusted
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended August 31, % ($ in millions) 2021 2020 Change Average Investment Balances: Funds Held For Clients $ 3,897.5 $ 3,507.2 11% Corporate Cash Equivalents and Investments $ 1,197.1 $ 1,022.2 17% Average Rate of Return Earned: Funds Held For Clients 1.5% 1.7%
Slide 19: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 19