Cbiz, Inc. · NYSE:CBZ

Cbiz — FY2024 Earnings Presentation

31 slides from Cbiz's earnings presentation, Feb 26, 2025

  1. Slide 1: Investor Presentation Full Year 2024

    Investor Presentation FULL YEAR 2024 February 26, 2025 CBIZ.COM | NYSE: CBZ

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (“the Exchange Act”). All statements other than statements of historical fa

  3. Slide 3: Non-GAAP Measures

    Non-GAAP Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we also present the Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (“EPS”), and Adjusted EBITDA which are non-GAAP measures. These non-GAAP measures, adju

  4. Slide 4: CBIZ is a leading professional services advisor to middle-market businesses

    CBIZ, Inc. (NYSE: CBZ) is a leading professional services advisor to middle-market businesses and organizations nationwide. With unmatched industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers forward-thinking insights and actionable soluti

  5. Slide 5: CBIZ – At a Glance

    CBIZ – At a Glance #7 ~$2.8 TOP 100 REVENUE ACCOUNTING FIRM(1) 10K+ 135K+ EMPLOYEES CLIENTS 160+ 22 OFFICES MAJOR MARKETS Major Market Office (1) Based on Accounting Today 2024 Top 100 Firms Report 5

  6. Slide 6: Competitive Advantage

    Competitive Advantage Since our founding in 1996, CBIZ set out to build a company that would provide a breadth of services with depth of expertise that is unmatched in our industries to assist our clients with their most pressing needs and greatest opportunities. Local Relationship National & Delive

  7. Slide 7: CBIZ Clients

    CBIZ Clients 135K+ MID-SIZED ~90% TOTAL CLIENTS BUSINESSES CLIENT RETENTION RATE 7

  8. Slide 8: Business Model Attributes

    Business Model Attributes ESSENTIAL & HIGH CLIENT RECURRING RETENTION SERVICES BROAD DIVERSE GEOGRAPHIC CLIENT BASE FOOTPRINT (Size/Industry) STRONG & CONSISTENT OPERATING CASH FLOWS LEVERAGE 8

  9. Slide 9: Revenue Breakdown

    Revenue Breakdown 75% FINANCIAL • Accounting & Tax • Financial Advisory • Government Health Care Consulting 22% 3% SERVICES 2024 22% BENEFITS & • • • Employee Benefits Consulting Payroll / Human Capital Management Property & Casualty Revenue $1.8B INSURANCE SERVICES • Retirement & Investment Service

  10. Slide 10: Recurring Revenue

    Recurring Revenue ~77% • Annual Accounting & Tax Services • Government Health Care Consulting • Group Health Benefits 23% RECURRING • Payroll/ Human Capital Management SERVICES • Property & Casualty • Retirement and Investment Services • Technology Support ~23% PROJECT BASED • • • Compensation Studi

  11. Slide 11: Top 7 Accounting Provider Nationally

    Financial Services National Advisory 18% Accounting & Tax Government 16% Health Care Top 7 Consulting 66% Accounting Provider Nationally by Accounting Today(1) (1) Based on Accounting Today 2024 Top 100 Firms Report 11

  12. Slide 12: Top 30 Benefits & Insurance Broker

    Benefits & Insurance Services Other Payroll / HCM 4% Employee Benefits Consulting 17% 33% Top 30 Property & Casualty 24% Broker of U.S. Business 2024 by BI Magazine 25% Retirement & Investment Solutions 12

  13. Slide 13: Our People & Culture

    Our People & Culture RECOGNITION

  14. Slide 14: Recognition

    Recognition & BE "| THE sins vault: | veut Ale ANKED Top RANKED BRIGHTEST PR 16 iu 106 Workplace eae IN WELLNESS Awards in 2024 WINNER 2024 WINNER 2024 PREENKE SECGUNTING FINANCIAL 7 pilates a AD {BEST PLACES TO WO RK 2024 _ when ah " Ceaiane corte ACBIZ s

  15. Slide 15: Marcum Strategic Rationale

    Marcum Strategic Rationale Solidify position as a leading provider of professional services to the growing middle market Market Position and 7th largest accounting services provider in the U.S. Growth Strategy Scale accelerates growth and further positions CBIZ as an acquirer of choice Our Attract a

  16. Slide 16: Marcum Integration Update

    Marcum Integration Update At 4Q24 Closing First 18 Months 2026 & Beyond ▪ People-focused onboarding ▪ Alignment of operational ▪ Anticipated $25M+ ▪ Brand elevation and joint processes and move to cost synergies marketing common platforms and ▪ Process and practice systems innovation ▪ Client engage

  17. Slide 17: Revenue Growth Components

    Revenue Growth Components Long-Term Growth Goals INTERNAL REVENUE Organic INTERNAL REVENUE 8% -10% Cross-Serving EXTERNAL REVENE M&A Adjusted Earnings Per Share 1.5x – 2x 17

  18. Slide 18: Internal Growth Drivers

    Internal Growth Drivers NET NEW PRICING CROSS-SERVING PRODUCERS & LOCAL MARKET MARKETING & BUSINESS BUSINESS GOALS BRANDING DEVELOPMENT MANAGERS 18

  19. Slide 19: Growth by Acquisition

    Growth by Acquisition STRATEGY ATTRIBUTES STRUCTURE ▪ Enter attractive geographic markets ▪ Successful local or ▪ Consideration based on TTM ▪ Strengthen presence in existing regional company EBITDA markets ▪ Cultural fit ▪ 50%+ paid up front ▪ Add breadth of service or depth of ▪ Strong leadership

  20. Slide 20: Financial Overview

    Financial Overview 20

  21. Slide 21: 2024 Highlights & 2025 Guidance

    2024 Highlights & 2025 Guidance 2024 2024 SAME-UNIT TOTAL 2025 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 4.8% 17.4% BENEFITS AND INSURANCE SERVICES 4.2% 4.8% NATIONAL PRACTICES 13.5% 4.1% REVENUE 4.8% 14.0% ~$2.90B TO $2.95B GAAP DILUTED EPS $0.78 $1.97 to $2.02 ADJUSTED D

  22. Slide 22: Clear Path to Leverage Reduction

    Clear Path to Leverage Reduction Pro Forma Net Leverage of Adj. EBITDA(1) ~3.25x to ~3.50x Significant free cash flow generated by the pro forma company to pay down transaction debt ~2.00x to ~2.25x Continued capital allocation approach addressing acquisitions, share repurchases, capital spending an

  23. Slide 23: Investment Highlights

    Investment Highlights OPERATIONAL FINANCIAL RESULTS LEVERAGE ATTRIBUTES • Proven ability to grow • Established national platform • Strong balance sheet earnings at a faster rate than revenue growth • Full integration of acquired • Strong and consistent cash flow businesses • 2019 – 2023 Revenue Grow

  24. Slide 24: Five-Year Total Shareholder Return

    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 *$100 invested on 12/31/19 in stock or index, including reinvestment of dividends. Fiscal years ending December 31. Peer Group companies iden

  25. Slide 25: Financial Goals

    Financial Goals 2025 GUIDANCE (1) GAAP EPS: $1.97 to $2.02 Revenue: $2.90B to $2.95B Continued Strong Cash Flow Adj. EPS(2) : $3.60 to $3.65 LONG-TERM GOALS – BEYOND 2025 8% - 10% Revenue Growth 1.5x – 2x Earnings Growth OPERATING LEVERAGE (1) Reflects guidance provided by the Company on February 26

  26. Slide 26: Appendix

    Appendix 26

  27. Slide 27: Workplace Awards in 2024

    & 106 Workplace Awards in 2024 csiz National Workplaces Early Talent Award Ripplernatch Campus ward Winner 1024 Top 100 Brokers List 24 Top 100 Firs — Accounting Today kp Finan 285 Industry I ani c ms 2024 Top ef rica’s Greatest Adeninis kplaces - Newsweok Recommended Local Wellbeing miCEEET © Akron

  28. Slide 28: GAAP Reconciliation

    ACBIZ BIZ, Inc. GAAP RECONCILIATION NetIncome and Diluted Earnings Per Share (“EPS”) to Adjusted Net (Loss) Income and EPS” {in thousands, except per share data) Twelve Months Ended December Twelve Months Ended December 31, 31, 2024 2023 ‘Amounts EPS ‘Amounts EPS Net Income $ 41038 $ 0.78 $120,968 $

  29. Slide 29: GAAP Reconciliation

    GAAP RECONCILIATION Net income and Diluted Earnings Per Share ("EPS") to Adjusted Net Income and Adjusted EPS") (In thousands, except per share data) Year Ended December 31, 2023 EPS 2022 EPS 2021 EPS 2020 EPS 2019 EPS Net income $ 120,968 $239 $105,354 $2.01 $70,887 $1.32 $78,299 $1.41 $70,714 $1.2

  30. Slide 30: GAAP Reconciliation Full Year 2025 Guidance

    ACBIZ CBIZ, Inc. GAAP RECON! Full Year 2025 Diluted Earnings Per Share nce Full Year 2025 Guidance (Amounts in millions except per share data) Low High Amounts EPS. Amounts EPS. GAAP Net Income $ 127.90 $197 $ 131.10 $2.02 Amortization of acquired intangible assets”) 75.1 1.15 75.1 1.15 Integration

  31. Slide 31: Thank You

    Thank You CBIZ.COM

CBIZ — FY2024 Earnings Presentation on 6ix