Slide 1: Fourth Quarter and Full Year 2022 Investor Presentation
FOURTH QUARTER AND FULL YEAR 2022 INVESTOR PRESENTATION Your Team. Local. Trusted. Nationwide. February 16, 2023
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Your Team. FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES Forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements are subject to certain risks and uncertainties that coul
Slide 3: CBIZ is a leading provider of financial, insurance and advisory services
CBIZ is a leading provider of financial, insurance and advisory services tailored to help our clients and their businesses grow and succeed. Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 3
Slide 4: CBIZ by the Numbers
Your Team. CBIZ BY THE NUMBERS 6,500+ Team Members Seattle 120+ Offices 33 States 21 Major Markets NYSE:CBZ CBIZ, INC. | PAGE 4
Slide 5: What We Do
Your Team. WHAT WE DO ▪ Accounting and Tax 72% ▪ Financial Advisory ▪ Transaction Advisory ▪ Risk & Advisory Services 25% Financial Services ▪ Valuation ▪ Litigation Support 2022 ▪ Government Health Care Consulting Revenue 3% $1.4B 72% 25% ▪ Employee Benefits Consulting ▪ Payroll / Human Capital Man
Slide 6: Business Model Attributes
Your Team. BUSINESS MODEL ATTRIBUTES ESSENTIAL & HIGH CLIENT RECURRING RETENTION SERVICES BROAD DIVERSE GEOGRAPHIC CLIENT BASE FOOTPRINT Size/Industry STRONG & VARIABLE CONSISTENT EXPENSES CASH FLOWS CBIZ, INC. | PAGE 6
Slide 7: Recurring Revenue
Your Team. RECURRING REVENUE ▪ Annual Tax Compliance ~75% ▪ Group Health Benefits ▪ Government Health Care Consulting ▪ Property & Casualty 25% Recurring Services ▪ Payroll ▪ Retirement Plan Services ▪ Technology Support 75% ~25% ▪ Compensation Studies ▪ Executive Search ▪ Financial Consulting Proje
Slide 8: Our Clients
Your Team. OUR CLIENTS 100,000+ ~60,000 ~90% Total Clients Business Clients Client Retention Rate National Resources – Personal Service CBIZ, INC. | PAGE 8
Slide 9: Competitive Advantage
Your Team. COMPETITIVE ADVANTAGE National Resources & Expertise Local Relationship & Delivery We out-local the nationals and out-national the locals. CBIZ, INC. | PAGE 9
Slide 10: Financial Services
Your Team. FINANCIAL SERVICES Business Advisory Services Tax 18% TOP 10 38% Accounting Provider Nationally 2022 Government by Accounting Today Health Care 18% Consulting TOP 25 Top 25 Accounting Firms 2022 26% by Vault Accounting 2022 Revenue Operating Income Operating OperatingMargin Margin $1.0B $
Slide 11: Benefits and Insurance Services
Your Team. BENEFITS AND INSURANCE SERVICES Individual Life Human Capital Insurance Services 4% 1% TOP 30 Employee Benefits Broker of U.S. Business 2022 Payroll Consulting 13% by BI Magazine 32% TOP 100 Property & Retirement Plan Adviser 2022 Casualty 26% by PLANADVISER BEST 24% Places to Work in Ins
Slide 12: Culture & Recognition
Your Team. CULTURE & RECOGNITION Corporate Social Responsibility | CBIZ, Inc. CBIZ, INC. | PAGE 12
Slide 13: Focus on Growth
Your Team. FOCUS ON GROWTH REVENUE GROWTH COMPONENTS Compounded INTERNALINTERNAL annual growth rate Organic since 2018 INTERNAL Cross-Serving 11.2% EXTERNAL EXTERNAL M&A Adjusted Earnings Per Share(1) (from continuing operations) EXTERNAL 18.2% (1) M&A (1) See Appendix for GAAP reconciliation. CBIZ,
Slide 14: Growth by Acquisition
Your Team. GROWTH BY ACQUISITION STRATEGY ATTRIBUTES STRUCTURE • Enter attractive geographic • Successful local or regional • Consideration based on TTM markets company EBITDA • Strengthen presence in existing • Cultural fit • 50%+ paid up front market • Add breadth of service or depth • Strong lead
Slide 15: Financial Overview
Financial Overview Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 15
Slide 16: Key Financial Highlights
Your Team. KEY FINANCIAL HIGHLIGHTS TOTAL 2018 2022 CAGR GROWTH REVENUE (IN MILLIONS) $922.0 $1,412 53.1% 11.2% PRE-TAX INCOME (IN MILLIONS) $79.8 $141.5 77.3% 15.4% ADJUSTED PRE-TAX INCOME(1) (IN MILLIONS) $79.8 $149.6 87.5% 17.0% PRE-TAX MARGIN 8.7% 10.0% +130 bps ADJUSTED PRE-TAX MARGIN(1) 8.7% 1
Slide 17: 2022 Highlights & 2023 Guidance
Your Team. 2022 HIGHLIGHTS & 2023 GUIDANCE 2022 SAME- 2022 UNIT TOTAL 2023 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 11.9% 37.6% BENEFITS AND INSURANCE SERVICES 8.3% 7.7% NATIONAL PRACTICES 13.8% 13.8% REVENUE 10.9% 27.8% 8% to 10% GAAP EPS GROWTH (FROM CONTINUING OPERATIO
Slide 18: Capital Structure
Your Team. CAPITAL STRUCTURE STRATEGIC SHARE DEBT ACQUISITIONS REPURCHASES CAPEX LEVERAGE • Focused on high- • Strategic approach • Facility • Strong cash flow growth • Neutralize impact improvements from operations opportunities of newly issued • Office equipment • $600M unsecured • Average three t
Slide 19: Investment Highlights
Your Team. INVESTMENT HIGHLIGHTS OPERATIONAL FINANCIAL RESULTS LEVERAGE ATTRIBUTES • Established national platform • Strong balance sheet • Proven ability to grow earnings • Full integration of acquired • Strong and consistent cash flow at a faster rate than revenue businesses growth • Credit facili
Slide 20: Five-Year Total Shareholder Return
Your Team FIVE-YEAR TOTAL SHAREHOLDER RETURN COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among CBIZ, Inc., the S&P 500 Index, the Russell 2000 Index, and a Peer Group $350 203% $300 $250 $200 89% 57% $150 22% $100 $50 $0 12/17 12/18 12/19 12/20 12/21 12/22 CBIZ, Inc. S&P 500 Russell 2000 Peer Grou
Slide 21: Financial Goals
Your Team. FINANCIAL GOALS 2023 Guidance(1) 8% TO 10% GAAP EPS GROWTH: 15% to 17% CONTINUED STRONG REVENUE GROWTH ADJ. EPS GROWTH: 11% TO 13% CASH FLOW Long-Term Goals - Beyond 2023 (1) Reflects guidance issued by the Company on February 16, 2023. This guidance speaks only as of this date and this p
Slide 22: Appendix
Appendix Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 22
Slide 23: 2022 Workplace Awards
Your Team. 2022 WORKPLACE AWARDS National Local Office National Health & Credibility Workplaces Workplaces Wellness Top 100 Retirement Plan Advisers Barron’s 2020 Top 50 Institutional Consulting Teams CBIZ, INC. | PAGE 23
Slide 24: Adjusted Pre-Tax Income and Margin Reconciliation
Your Team. ADJUSTED PRE-TAX INCOME AND MARGIN RECONCILIATION GAAP RECONCILIATION Pre-tax Income to Adjusted Pre-tax Income(1) (In thousands) 2022 2021 2020 2019 2018 % of % of % of % of Amounts % of Revenue Amounts Revenue Amounts Revenue Amounts Revenue Amounts Revenue Income from continuing operat
Slide 25: YTD Adjusted EPS Reconciliation
Your Team. YTD ADJUSTED EPS RECONCILIATION Income and Diluted Earnings Per Share ("EPS") from Continuing Operations to Adjusted Income and EPS (1) (In thousands) TWELVE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, 2022 DECEMBER 31, 2021 Amounts EPS Amounts EPS Income from continuing operations $ 10
Slide 26: Adjusted EPS Reconciliation
Your Team. ADJUSTED EPS RECONCILIATION GAAP RECONCILIATION (1) Reconciliation of GAAP Income from Continuing Operations and Earnings Per Diluted Share (In thousands, except per share data) Year Ended December 31, 2022 EPS 2021 EPS 2020 EPS 2019 EPS 2018 EPS Income from continuing operations $ 105,37
Slide 27: YTD Adjusted EBITDA Reconciliation
Your Team. YTD ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION (Loss) Income from Continuing Operations to Adjusted EBITDA(1) (In thousands) THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 30, DECEMBER 30, 2022 2021 2022 2021 (Loss) Income from continuing operations $ (11,493) $ (9,613) $ 105,372
Slide 28: Adjusted EBITDA Reconciliation
Your Team. ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION (1) Reconciliation of GAAP Income from Continuing Operations to Adjusted EBITDA (In thousands) Year Ended December 31, 2022 2021 2020 2019 2018 Income from continuing operations……………………………….. $ 105,372 $ 70,911 $ 78,347 $ 71,049 $ 61,573
Slide 29: Adjusted EPS Guidance Reconciliation
Your Team. ADJUSTED EPS GUIDANCE RECONCILIATION GAAP RECONCILIATION Full Year 2023 EPS from Continuing Operations Guidance to Full Year 2023 Adjusted Diluted EPS (In thousands) Full Year 2023 Guidance Low High Diluted EPS - GAAP Guidance $ 2.31 $ 2.36 (1) Integration cost related to Somerset acquisi