Fiscal 2022

Year End

Earnings Call

David Mutryn

Chief Financial Officer

November 22, 2022

1

| Maximus: Q4 FY22 Earnings Presentation

Forward-looking Statements & Non-GAAP Information

These slides should be read in conjunction with the Company's most recent quarterly earnings press release, along with listening to or reading a transcript of the comments of Company management from our most recent quarterly earnings conference call.

This document may contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results, and providing meaningful period-to-period comparisons. These measures should be used in conjunction with, rather than instead of, their comparable GAAP measures. For a reconciliation of non-GAAP measures to the comparable GAAP measures presented in this document, see the Company's most recent quarterly earnings press release.

In this presentation, we use terms such as "normalized organic growth." We calculate this number by removing the estimated revenues from COVID-19 response work, the benefit from our acquisitions and the period-over-period currency effects from our revenue. We believe normalized organic growth allows our investors to understand the effect on our revenue and revenue growth of various key drivers whose effects will vary from year to year. It should be used to complement analysis of our revenue and revenue growth.

Included in this presentation are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods.

Forward-looking statements that are not historical facts, including statements about our confidence, strategies and initiatives and our expectations about revenues, results of operations, profitability, liquidity, market demand or the impact of the pandemic are forward-looking statements that involve risks and uncertainties such as those related to the impact of the pandemic and our recently-completed acquisitions.

These risks could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2022, which will be filed with the Securities and Exchange Commission (SEC) on November 22, 2022.

Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Throughout this presentation, numbers may not add due to rounding.

2

| Maximus: Q4 FY22 Earnings Presentation

Total Company Results - FY22

($ in millions, except per share data)

FY22

FY21

% Change

Revenue

U.S. Federal Services

$

2,259.7

$

1,893.3

19 %

U.S. Services

1,607.6

1,662.1

(3)%

Outside the U.S.

763.7

699.1

9 %

Total Revenue

$

4,631.0

$

4,254.5

9 %

Operating Income

U.S. Federal Services

$

234.9

$

189.1

24 %

U.S. Services

182.1

254.4

(28)%

Outside the U.S.

(15.2)

20.1

nm

Segment Income

$

401.9

$

463.6

(13)%

Intangibles amortization

(90.5)

(44.4)

nm

Gain on sale of land & building

11.0

-

nm

Other

3.5

(10.7)

nm

Total Operating Income

$

325.9

$

408.5

(20)%

Operating Margin %

7.0 %

9.6 %

Adjusted Operating Margin %

9.0 %

10.6 %

Effective Tax Rate

26.4 %

24.1 %

Net Income

$

203.8

$

291.2

(30)%

Diluted EPS

$

3.29

$

4.67

(30)%

Adjusted Diluted EPS (Non-GAAP)

$

4.37

$

5.19

(16)%

3

| Maximus: Q4 FY22 Earnings Presentation

  • Revenue increase of 8.9% is net of $800 million decline in COVID-19 response work. Adjusting for the COVID-19 response work, normalized organic growth was 18% over the prior year period (refer to Appendix)
  • Organic growth driven by new or expanded programs in all three segments. Other source of top-line growth is full-period contributions from U.S. Federal acquisitions
  • Earnings for FY22 exceeded guidance due to combined benefits of $28 million ($0.33 DEPS) in Q4 FY22:
    • Contractual and legal items totaling $17 million ($0.20 DEPS), which favorably impacted domestic segments and other SG&A
    • $11 million ($0.13 DEPS) gain on sale of building
  • Results for Q4 FY22 also benefitted from notably strong volumes in VES business

U.S. Federal Services Segment

  • Revenue increased 19.4% due to full-period contributions from Attain, VES, and Aidvantage acquisitions, partially offset by decline in COVID-19 response work
  • Adjusting for COVID-19 response work, normalized organic growth was 4.8% and driven by new work wins and expansion on recompetes. Examples include the additional VES region, the SEC modernization effort with additional scope, and the CMS Contact Center Operations recompete with a higher run-rate

($ in millions)

FY22

FY21

% Change

Revenue

U.S. Federal Services

$

2,259.7

$

1,893.3

19 %

Operating Income

U.S. Federal Services

$

234.9

$

189.1

24 %

Operating Margin %

10.4 %

10.0 %

4

| Maximus: Q4 FY22 Earnings Presentation

U.S. Services Segment

  • Revenue decreased 3.3% but, normalizing for COVID-19 response work, organic growth was over 30%, driven by new work wins and successful conversion of some short-term work into longer-term contracts. Examples include eligibility support contracts in Indiana and Arkansas, long-term care assessment work across the country, and multi-year unemployment insurance contract with California
  • Margins were lower in the second half of FY22 as COVID-19 response work concluded. Meanwhile, paused redetermination activities continue to act as a headwind to the segment's profitability

5

| Maximus: Q4 FY22 Earnings Presentation

($ in millions)

FY22

FY21

% Change

Revenue

U.S. Services

$

1,607.6

$

1,662.1

(3)%

Operating Income

U.S. Services

$

182.1

$

254.4

(28)%

Operating Margin %

11.3 %

15.3 %

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Maximus Inc. published this content on 21 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2022 23:15:07 UTC.