Slide 1: Fourth Quarter Highlights and Financial Results Fiscal 2022
Fourth 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-driven Paychex Overview HCM software and solutions company • Leading-edge technology platform A leading provider of integrated backed by HR and compliance human capital management expertise (“HCM”) software and solutions for human resources (“HR”), payroll, • Leader in com
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights
Slide 5: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 11% 11% 13% $1,130M $394M $0.81 $1,015M $0.72 $354M Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. gen
Slide 6: Fourth Quarter Service Revenue
Fourth Quarter Service Revenue (In Millions) Key Drivers Management Solutions • Client base growth driven by strong sales performance and high levels of client $1,130 retention $1,015 • Increase in the number of client employees throughout our HCM solutions suite $890 • Higher revenue per client due
Slide 7: Fourth Quarter Business Highlights
Fourth Quarter Business Highlights Achieved double-digit revenue and earnings growth o Continued momentum from previous quarters with positive trends across the business o Strong internal execution driving growth with tailwind of positive macroeconomic trends o Adjusted operating margins expanded 10
Slide 8: 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 8
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex is being honored for its innovative technology and impressive corporate culture HR Tech Award from Lighthouse FORTUNE® Magazine 2022 Worlds’ Research & Advisory – Best Most Admired Companies SMB-focused solution in the Paychex was named to the list of the Core H
Slide 10: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $3.77 $4,554 $3,997 $3.00 $3.04 $3,954 $3,692 $1,111 $2.84 $3,314 $991 $974 $2.55 $814 $556 $3,443 $2,878 $2,963 $3,023 $2,758 FY18(2) FY19 FY20 FY21 FY22 FY18(2) FY19 FY20 FY21 FY22
Slide 11: Fiscal 2023 Outlook
Fiscal 2023 Outlook
Slide 12: Fiscal Year 2023 Outlook
Fiscal Year 2023 Outlook Year-over-Year Growth Management Solutions Revenue 5% - 7% PEO & Insurance Solutions Revenue 8% - 10% Total Revenue 7% - 8% (1) 9% - 10% Adjusted Diluted EPS Anticipated Result Interest on Funds Held for Clients $85M - $95M (1) 40% - 41% Adjusted Operating Income , as a Perc
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three Months and Full Year ended May 31, 2022 Three Months Ended % Twelve Months Ended % (In millions, except per share amounts) May 31, 2022 Change May 31, 2022 Change Management Solutions $ 845.3 12% $ 3,442.7 14% PEO and Insurance Solutions 284.3 10% 1,111.3 14% Total Se
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows May 31, 2022 May 31, 2021 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,304.7 $ 1,127.3 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 806.4 $ 804.7 net debt Return on Equity 45% 38% • $800M of private placeme
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months and Full Year ended May 31, 2022 (In millions, except per share amounts) Three Months Ended Twelve Months Ended May 31, % May 31, % 2022 2021 Change 2022 2021 Change Operating Income $ 394.0 $ 353.8 11% $ 1,840.0 $ 1,460.7 26% Non-GAAP Adjustments: Co
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Twelve Months Ended May 31, % May 31, % ($ in millions) 2022 2021 Change 2022 2021 Change Average Investment Balances: Funds Held For Clients $ 4,558.2 $ 4,219.5 8% $ 4,354.8 $ 3,941.9 10% Corporate Cash Equivalents and Investments $ 1,491.7 $ 1,124.1
Slide 18: Supplemental Information
Supplemental Information
Slide 19: FY22 Revenue Composition
FY22 Revenue Composition Management Solutions PEO & Insurance Solutions 5% - 10% 15% - 20% Other Insurance Solutions 20% - 25% HR Solutions (ASO) $3.4B $1.1B 5% - 10% Retirement 80% - 85% 60% - 65% PEO Payroll & HCM Software 19
Slide 20: Paychex
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 20