Maximus : Q3 FY23 Financial Results Presentation

Fiscal 2023

Third Quarter

Earnings Call

David Mutryn

Chief Financial Officer

August 3, 2023

1	| Maximus: Q3 FY23 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.

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 was filed with the Securities and Exchange Commission (SEC) on November 22, 2022, and in our Form 10-Q expected to be filed shortly.

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.

On July 26, 2023, the Company announced a cybersecurity incident related to a third-party file sharing application. Our results of operations for the third quarter of fiscal year 2023 contained in this presentation include an approximate $22 million expense for our investigation and remediation costs related to the incident, which reflects our best estimate based on the currently available information. This estimate is preliminary and could change prior to the time we file our Form 10-Q for the third fiscal quarter of 2023

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

2	| Maximus: Q3 FY23 Earnings Presentation

Total Company Results - Third Quarter of FY23

($ in millions, except per share data)		Q3 FY23	Q3 FY22	% Change
Revenue			$	525.5
U.S. Federal Services	$	584.0		11 %
U.S. Services		449.1		399.3		12 %
Outside the U.S.		155.7		200.9		(23)%
Total Revenue	$	1,188.7	$	1,125.8		6 %
Operating Income
U.S. Federal Services	$	74.1	$	54.7		35 %
U.S. Services		47.0		31.8		48 %
Outside the U.S.		(15.2)		(11.2)		nm
Other		(24.0)		1.9		nm
Adjusted Operating Income (Non-GAAP)	$	81.8	$	77.2		6 %
Intangibles amortization		(23.4)		(22.7)		3 %
Total Operating Income	$	58.4	$	54.6		7 %
Operating Margin %		4.9 %		4.8 %
Adjusted Operating Margin %		6.9 %		6.9 %
Interest expense	$	21.0	$	10.8		95 %
Effective Tax Rate		15.1 %		24.1 %
Net Income	$	30.9	$	31.3		(2)%
Diluted EPS	$	0.50	$	0.51		(2)%
Adjusted Diluted EPS (Non-GAAP)	$	0.78	$	0.78		- %

• Strong organic revenue growth and margin improvement in U.S. Federal and U.S. Services segments driven by unprecedented demand for clinical assessments for veterans and start to unwinding effort for Medicaid redeterminations
• Q3 FY23 earnings impacted by approximately $22 million expense for previously disclosed cybersecurity incident
• • Reduced earnings by $0.26 per share; detriment included in adjusted earnings per share which only excludes intangibles amortization
  • Absent incident costs, Q3 FY23 adjusted OI% would have been 8.7% and adjusted EPS would have been $1.04
• A larger than anticipated loss in Outside the U.S this quarter was driven by macroeconomic factors that caused decline in expectations on segment's employment services contracts
• Q3 FY22 had less interest expense due to lower interest rates
• Tax rate favorability this quarter from discrete items benefitted Q3 FY23 diluted EPS by $0.06

3	| Maximus: Q3 FY23 Earnings Presentation

U.S. Federal Services Segment

• Revenue increased 11% which was all organic and due to volume growth in both the Veterans Evaluation Services (VES) business and student loan servicing work
• Segment margin of 12.7% for Q3 FY23 was slightly better than anticipated and resulted from strong delivery by VES on ramping PACT Act volumes

	($ in millions)		Q3 FY23		Q3 FY22	% Change
	Revenue
	U.S. Federal Services	$	584.0	$	525.5	11 %
	Operating Income
	U.S. Federal Services	$	74.1	$	54.7	35 %
	Operating Margin %		12.7 %		10.4 %

4	| Maximus: Q3 FY23 Earnings Presentation

U.S. Services Segment

• Revenue increased 12% which was all organic and driven by contributions new work wins last year as well as an uptick from start of Medicaid redetermination volume
• Segment margin of 10.5% for Q3 FY23 was consistent with expectations for an improving trend in this segment across remainder of FY23
• Reminder: the pause to redeterminations had resulted in depressed margins in this segment, and a full period of conducting redeterminations is expected next quarter

	($ in millions)		Q3 FY23		Q3 FY22	% Change
	Revenue
	U.S. Services	$	449.1	$	399.3	12 %
	Operating Income
	U.S. Services	$	47.0	$	31.8	48 %
	Operating Margin %		10.5 %		8.0 %

5	| Maximus: Q3 FY23 Earnings Presentation