Slide 1: Second Quarter and First Half 2022 Investor Presentation
SECOND QUARTER AND FIRST HALF 2022 INVESTOR PRESENTATION Your Team. Local. Trusted. Nationwide. July 28, 2022
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: National Scale
Your Team. NATIONAL SCALE 6,000+ Team Members Seattle 100+ Offices 32 States 20 Major Markets NYSE:CBZ CBIZ, INC. | PAGE 4
Slide 5: Services & Revenue
Your Team. SERVICES & REVENUE AS OF YEAR-END 2021. DOES NOT INCLUDE THE MARKS PANETH ACQUISITION EFFECTIVE 1/1/22. ▪ Accounting and Tax 66% ▪ Financial Advisory ▪ Transaction Advisory ▪ Risk & Advisory Services Financial Services ▪ Valuation 30% ▪ Litigation Support 2021 ▪ Government Health Care Con
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 ~70% ▪ Group Health Benefits ▪ Government Health Care Consulting ▪ Property & Casualty Recurring Services ▪ Payroll 30% ▪ Retirement Plan Services ▪ Technology Support 70% ~30% ▪ Compensation Studies ▪ Executive Search ▪ Financial Consulting ▪ Lit
Slide 8: Our Clients
Your Team. OUR CLIENTS National Resources – Personal Service 82,000+ ~48,000 ~90% Total Clients Business Clients Client Retention Rate We out-local the nationals and out-national the locals. CBIZ, INC. | PAGE 8
Slide 9: Financial Services
Your Team. FINANCIAL SERVICES Business Advisory Services Tax TOP 10 19% Accounting Provider Nationally 2021 by Accounting Today 33% Government Health Care TOP 10 Consulting 22% Top 50 Accounting Firms 2022 by Vault 26% TOP Accounting Workplace in Financial Services Industry 2021 2021 Revenue Operati
Slide 10: Benefits and Insurance Services
Your Team. BENEFITS AND INSURANCE SERVICES Individual Life Human Capital Insurance Services 3% 1% TOP 25 Employee Benefits Broker of U.S. Business 2021 Payroll Consulting 14% by BI Magazine 32% TOP 100 Property & Retirement Plan Adviser 2021 25% Casualty by PLANADVISER BEST 25% Places to Work in Ins
Slide 11: Our Culture & Recognition
Your Team. OUR CULTURE & RECOGNITION Corporate Social Responsibility | CBIZ, Inc. CBIZ, INC. | PAGE 11
Slide 12: Focus on Growth
Your Team. FOCUS ON GROWTH Compounded INTERNALINTERNAL annual growth Organic rate since 2017 INTERNAL Cross-Serving 6.6% EXTERNAL EXTERNAL M&A Adjusted Earnings Per Share(1) (from continuing operations) EXTERNAL 17.5% (1) M&A (1) See Appendix for GAAP reconciliation. CBIZ, INC. | PAGE 12
Slide 13: Growth by Acquisition
Your Team. GROWTH BY ACQUISITION STRATEGY ATTRIBUTES STRUCTURE • Enter attractive geographic • Successful local or regional • Consideration based on markets company TTM EBITDA • Strengthen presence in • Cultural fit • 50%+ paid up front existing market • Strong leadership • Balance paid on multi-yea
Slide 14: Financial Overview
Financial Overview Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 14
Slide 15: Key Financial Highlights
Your Team. KEY FINANCIAL HIGHLIGHTS TOTAL 2017 2021 CAGR GROWTH REVENUE (IN MILLIONS) $855.3 $1,104.9 29.2% 6.6% PRE-TAX INCOME (IN MILLIONS) $74.3 $93.0 25.2% 5.8% ADJUSTED PRE-TAX INCOME(1) (IN MILLIONS) $71.8 $117.2 63.2% 13.0% PRE-TAX MARGIN 8.7% 8.4% -30 bps ADJUSTED PRE-TAX MARGIN(1) 8.4% 10.6
Slide 16: YTD Highlights & 2022 Guidance
Your Team. YTD HIGHLIGHTS & 2022 GUIDANCE YTD 2022 YTD 2022 SAME-UNIT TOTAL 2022 SEGMENT REVENUE REVENUE GUIDANCE(1) GROWTH GROWTH FINANCIAL SERVICES 10.8% 40.3% BENEFITS AND INSURANCE SERVICES 9.2% 8.4% NATIONAL PRACTICES 14.1% 14.1% REVENUE 10.5% 30.1% 23% to 25% GAAP EPS (FROM CONTINUING OPERATIO
Slide 17: Revenue
Your Team. REVENUE YTD Revenue Revenue (in millions) $1,359.1- $1,400 $1,381.2 $1,200 $1,104.9 $1,000 $922.0 $948.4 $963.9 $855.3 $800 $753.7 $600 $579.4 $400 $200 $0 2017 2018 2019 2020 2021 2022 (1) (1) Reflects guidance issued by the Company on July 28, 2022. This guidance speaks only as of this
Slide 18: Diluted Earnings Per Share
Your Team. DILUTED EARNINGS PER SHARE(2) (from continuing operations) YTD GAAP EPS GAAP EPS Non-GAAP EPS $2.20 $2.08 – $2.11 $1.92 - $1.95 $2.00 $1.81 $1.80 $1.70 $1.60 $1.66 $1.42 $1.40 $1.27 $1.20 $1.09 $1.32 $1.00 $0.92 $1.09 $0.80 $0.87 $0.60 $0.40 $0.20 $0.00 2017 2018 2019 2020 2021 2022 (1) (
Slide 19: Adjusted EBITDA
Your Team. ADJUSTED EBITDA(1) Adjusted EBITDA (in millions) $150 $148.5 $125 $132.1 $120.6 $100 $109.1 $104.0 $75 $50 $25 $0 2017 2018 2019 2020 2021 Adjusted EBITDA Margin 12.2% 11.8% 12.7% 13.7% 13.4% (1) See Appendix for GAAP reconciliation. CBIZ, INC. | PAGE 19
Slide 20: Capital Structure
Your Team. CAPITAL STRUCTURE STRATEGIC SHARE ACQUISITIONS REPURCHASES CAPEX DEBT LEVERAGE • Focused on high- • Strategic approach • Facility improvements • Strong cash flow from growth opportunities • Neutralize impact of • Office equipment operations • Typically complete newly issued shares • $400M
Slide 21: Pre-Tax Operating Leverage
Your Team. PRE-TAX OPERATING LEVERAGE(1) Pre-Tax Margin Adjusted Pre-Tax Margin 12.0% 10.7% 10.6% 10.0% 9.8% 8.7% 8.7% 8.4% 8.4% 8.0% 6.0% 4.0% 2.0% 0.0% 2017 2018 2019 2020 2021 Goal: Pre-tax income margin improvement of 20 to 50 bps per year (1) See Appendix for GAAP reconciliation. CBIZ, INC. | P
Slide 22: Investment Highlights
Your Team. INVESTMENT HIGHLIGHTS OPERATIONAL FINANCIAL LEVERAGE ATTRIBUTES RESULTS • 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 23: Financial Goals
Your Team. FINANCIAL GOALS 2022 Guidance(1) 23% TO 25% GAAP EPS GROWTH: 45% to 48% CONTINUED STRONG REVENUE GROWTH ADJUSTED EPS GROWTH: 25% TO 27% CASH FLOW Long-Term Goals - Beyond 2022 (1) Reflects guidance issued by the Company on July 28, 2022. This guidance speaks only as of this date and this
Slide 24: Appendix
Appendix Your Team. Local. Trusted. Nationwide. CBIZ, INC. | PAGE 24
Slide 25: 2020 Workplace Awards
Your Team. 2020 WORKPLACE AWARDS National Local Office Certifications & National Health & Credibility Workplaces Workplaces Rankings Wellness Akron, OH* Great Place to Work 2020 Health & Top 100 Retirement Alpharetta, GA Certification Atlanta, GA Wellness Seal of Plan Advisers Boca Raton, FL* 2021 V
Slide 26: Adjusted Pre-Tax Income and Margin Reconciliation
Your Team. ADJUSTED PRE-TAX INCOME AND MARGIN RECONCILIATION GAAP RECONCILIATION (1) Pre-tax Income to Adjusted Pre-tax Income (In thousands) 2021 2020 2019 2018 2017 % of % of % of % of % of Amounts Revenue Amounts Revenue Amounts Revenue Amounts Revenue Amounts Revenue Income from continuing opera
Slide 27: YTD Adjusted EPS Reconciliation
Your Team. YTD ADJUSTED EPS RECONCILIATION GAAP RECONCILIATION Income and Diluted Earnings Per Share ("EPS") from Continuing Operations to Adjusted Income and EPS (1) (In thousands) SIX MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2022 JUNE 30, 2021 Amounts EPS Amounts EPS Income from continuing operation
Slide 28: Adjusted EPS Reconciliation
Your Team. ADJUSTED EPS RECONCILIATION GAAP RECONCILIATION Reconciliation of GAAP Income from Continuing Operations and Earnings Per Diluted Share (1) (In thousands, except per share data) Year Ended December 31, 2021 EPS 2020 EPS 2019 EPS 2018 EPS 2017 EPS Income from continuing operations $ 70,911
Slide 29: YTD Adjusted EBITDA Reconciliation
Your Team. YTD ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION Income from Continuing Operations to Adjusted EBITDA(1) (In thousands) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2022 2021 2022 2021 Income from continuing operations $ 31,260 $ 8,613 $ 89,391 $ 58,829 Interest expense 1,6
Slide 30: Adjusted EBITDA Reconciliation
Your Team. ADJUSTED EBITDA RECONCILIATION GAAP RECONCILIATION Reconciliation of GAAP Income from Continuing Operations to Adjusted EBITDA (1) (In thousands) Year Ended December 31, 2021 2020 2019 2018 2017 Income from continuing operations……………………………….. $ 70,911 $ 78,347 $ 71,049 $ 61,573 $ 51,032 I
Slide 31: Adjusted EPS Guidance Reconciliation
Your Team. ADJUSTED EPS GUIDANCE RECONCILIATION GAAP RECONCILIATION Full Year 2022 EPS from Continuing Operations Guidance to Full Year 2022 Adjusted Diluted EPS (In thousands) Full Year 2022 Guidance Low High Diluted EPS - GAAP Guidance $ 1.92 $ 1.95 (1) Transaction and integration cost related to