Maximus : Latest Investor Presentation

Investor

Presentation

M A R C H 2 0 2 4

Creating Value to Drive Long-term Growth

WHO	HOW WE
WE ARE	CREATE VALUE
Founded in 1975, leading operator of	Unmatched ability to translate
public policy into operating models
government health and
that achieve outcomes for
human services programs worldwide
government - at scale
Key services	Desirable operating model drives
high cash conversion
Key government customers	Capital deployment strategy
			focused on long-term organic growth

WHAT DRIVES

LONG-TERM GROWTH

Long-term demographic,

political, technology, and economic

trends favor our business

Meaningful barriers to entry in many markets

Organic growth through scope increases and amendments supplement new market expansion

2 INVESTOR PRESENTATION

How We Operate at Scale

Perform 2 million+	Manage 20 million+	Handle 7 million
independent benefit reviews	citizen services cases	contact center inquiries per month
Complete 2.5 million+	Oversee 60 - 70%	Answer 43 million
assessments in the	of the market	calls annually to support Federal
U.S. and U.K. each year	of Medicaid	health insurance enrollment
	managed care

Why	How We
We Win	Adapt

Typical Evaluation Criteria	Strategic IT Investments
Are Weighted 70/30
Provide Flexibility
Technical vs. Cost
Federal Contracts Are	Best-in-Class Labor Sourcing
Awarded Generally on a
Capabilities & Network
"Best Value" Basis
Winning in	Highly Variable Cost Model
Our Markets

Built to Adapt and Win

3 INVESTOR PRESENTATION

HIGHLY DESIRABLE

LONG-TERM RELATIONSHIPS

Masterfile

Accurate processing of taxes in the U.S.

Proven

Durability with Large Customers

4 INVESTOR PRESENTATION

California

New York

Texas

U.S. Dept. Edu.

U.S. Dept.

Veterans Affairs

U.S. Centers for Medicare

& Medicaid Serives

U.S. Internal

Revenue Service

U.S. SEC

U.K. DWP

U.S. Centers for

Disease Control and

Prevention

Maximus U.S. Federal is #1 Provider at:

IT Security Implementation

Project and program management for the IRS cybersecurity organization

EDGAR

Provides free public access to corporate filings which increases the efficiency, transparency, and fairness of the securities markets

Contact Center Operations (CCO)

Serves as the primary support engagement center for Medicare and the federal exchange utilized by 30+ states under the Affordable Care Act (ACA)

Financial Characteristics

5	INVESTOR PRESENTATION

Revenue

Sustainable, mid-single

digit organic growth

Long-term Customers

7+ year weighted average contract life; our relationships last decades

~90%

Recompete Win Rate

Operating Margin

9 - 12%, with 100-200 bp

expansion over next 3 yrs.,

and before expense for amortization of

intangible assets

Backlog of Contracts

$20.7B	backlog as of 9/30/2023
4X	revenuebacklog relative to TTM

~6 YR average remaining life of backlog

High Cash Conversion

FCF to GAAP net income

~1.3X go forward

Segment & Revenue Disaggregation

$689

$685		FY17	14%	$1,812	FY23
28%	$1,220	Segment		Segment
	37%
	Revenue ($M)		Revenue ($M)
	50%

$546	$2,451	$2,404	$4,905
22%		49%

U.S. Services		U.S. Federal Services		Outside the U.S.

6%	Revenue Breakdown
11%			Program Operations
53%			Clinical Services
30%			Employment & Other

Technology Solutions

FY23 of $4,905M

6 INVESTOR PRESENTATION

How We Are Paid

Time & Materials

Labor rate per hour plus reimbursement of non-labor costs

HIGHER RISK

HIGHER MARGIN

Firm, Fixed Price

Appropriate if program is well-established with known volumes

Performance-Based (Fixed Price Per Unit)

Activity based: per call, per assessment, per enrollment

Outcomes based: per job placement, per job sustainment

Membership based: per member per month

Area of emphasis due to common use on Business Process Services (BPS) programs

Area of emphasis due to common use in technology services

LOWER RISK

LOWER MARGIN

Cost Plus

Reimbursed for direct & indirect expenditures

Profit rate is contractual, may include an award fee component (based on performance)

	8%		FY24 YTD Revenue
				Breakdown
13%
		53%			Performance-based
				Cost-plus
26%

Fixed price

Time and materials

7	INVESTOR PRESENTATION

Strategy Focused on Leveraging Successful Foundation and Strong Technology Portfolio

Strategic Growth Pillars
		Advanced
Customer Services,	Future of	Technologies for
Modernization
Digitally Enabled	Health	(Technology Services)
Elevate Customer	Help governments meet	Further our credibility as a
Experience (CX) to	rising demand for health	technology leader
achieve higher levels of	services by growing our	enabling the
satisfaction, performance,	clinical capabilities to	transformation of
and outcomes through	improve the health of people	government programs to
intelligent automation and	and their communities	be resilient, dynamic,
cognitive computing		integrated, and equitable

Delivery Strategies

Maximus enables governments to respond to complex technology, health, and social challenges they face in delivering their largest and most critical programs

Business Process

Services (BPS)

Technology Consulting Services (TCS)

OUR PEOPLE | Driving the Strategic Plan's Success

Attract, retain, develop, and empower people who share our passion, commitment, and expertise to address government's toughest challenges

8 INVESTOR PRESENTATION

Customer Services,

Digitally Enabled

Objectives

• Expand Maximus' leadership in delivering outcomes-focusedgovernment-to-customer interactions
• Leverage understanding of intersections of policy and consumer needs
• Capitalize on government's commitment to a better Customer Experience (CX)

Examples of Our Success Thus Far

	Area		Proof Point
	TX | Intelligent		50% of Medicaid enrollment forms are automatically processed
	Document Processing		Our solution interprets handwriting with 99%+ accuracy
	MI | Robotic Process		RPA automates ~8,000 premium refund requests each month
	Automation (RPA)
	Company-wide RPA		157 operated bots have automated 11.5M transactions
	Digital Documents		61% of applications and forms completed within 5 days
	Technology		Previously, no applications completed within 5 days
	Industry Awards		Our Digital Solutions and Creative Agency won 28 industry and agency awards

How This Supports Our Strategy

Organic & New

Business Growth

Digital Solutions =

Competitive Differentiation

Catalyst for Contract

Amendments

Margin Improvement

Achievement of Service Levels

Quality Improvement

& Error Reduction

9 INVESTOR PRESENTATION

Future of Health

• Expanding our commitment to help governments satisfy the rising demand for health services
• Includes the delivery of health services
  directly (i.e., via clinicians or other health professionals) or indirectly (i.e., analytics, infection control)

What makes this strategic & how will we win?

What This Means:

In Scope

Assessments & Appeals

Care Navigation, Integration & Access

Tech-enabled Telecare & Assessments

Chronic Disease Prevention

Veterans, Military Staff & Families Counseling

Mental Health Provision

Out of Scope

Strong track record of delivering complex programs with a clinical dimension

Significant "open space"

exists to further

expand our assessment

business

Independence and conflict-free status area competitive advantage

Hospital Facilities Management

Staffing Hospitals & Providing Acute Care

Prescribing Medications

10 INVESTOR PRESENTATION