#1RA 1972.360 EXESSO as Paycor Investor Presentation Q2 FY'22#2Disclaimer Paycor HCM, Inc.'s (together with its subsidiaries, "Paycor" or the "Company") fiscal year ends on June 30. References to "fiscal 2022" or "FY'22" refer to the fiscal year ended June 30, 2022. References to "fiscal 2021" or "FY'21" refer to the fiscal year ended June 30, 2021. References to "fiscal 2020" or "FY'20" refer to the fiscal year ended June 30, 2020. References to "fiscal 2019" or "FY'19" refer to the arithmetic sum of the results of (i) Paycor, Inc., the Company's accounting predecessor, for the period of July 1, 2018 through November 1, 2018 and (ii) the Company for the period of November 2, 2018 to June 30, 2019. These FY'19 figures do not represent "pro forma" amounts prepared in accordance with SEC rules and regulations, including Article 11 of Regulation S-X. Any references to a year not preceded by fiscal or FY refers to a calendar year. Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company's current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance and business. These statements may be preceded by, followed by or include the words "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "will," "should," "can have," "likely," outlook," "potential," "targets," "project," "contemplates" and the negatives thereof and other words and terms of similar meaning. All statements other than statements of historical fact are forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by the Company, or any other person that the future plans, estimates, or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relations to the Company's operations, financial results, financial condition, business, prospects, growth strategy, and liquidity. Accordingly, there are, or will be, important factors that could cause the Company's actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to: our ability to manage our growth effectively; the expansion and retention of our direct sales force with qualified and productive persons and the related effects on the growth of our business; the impact on customer expansion and retention if implementation, user experience, customer service, or performance relating to our solutions is not satisfactory; our ability to innovate and deliver high-quality, technologically advanced products and services; our relationships with third parties; the proper operation of our software; future acquisitions of other companies' businesses, technologies, or customer portfolios; the impact of COVID-19 on our business; and those risks described in our prospectus, as well as in our other filings with the Securities and Exchange Commission. There is no assurance that the Company will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way the Company expects. The forward-looking statements included in this prospectus are made only as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as otherwise required by law. Market and Industry Data Unless otherwise indicated, information in this presentation concerning economic conditions, the Company's industry, the Company's markets, and the Company's competitive position is based on a variety of sources, including information from independent industry analysts and publications, as well as the Company's own estimates and research. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While the Company believes the information presented is generally reliable, forecasts, assumptions, expectations, beliefs, estimates, and projections involve risk and uncertainties and are subject to change based on various factors. Non-GAAP Financial Measures This presentation contains financial measures, such as Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Gross Profit Excluding Depreciation and Amortization, Adjusted Gross Profit Margin Excluding Depreciation and Amortization, Adjusted Sales and Marketing Expense, Adjusted General and Administrative Expense, and Adjusted Research and Development Expense, which are not recognized under generally accepted accounting principles in the United States ("GAAP"). The Company believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Gross Profit Excluding Depreciation and Amortization, Adjusted Gross Profit Margin Excluding Depreciation and Amortization, Adjusted Sales and Marketing Expense, Adjusted General and Administrative Expense, and Adjusted Research and Development Expense have limitations as an analytical tool, and you should not consider this measure either in isolation or as a substitute for other methods of analyzing the results as reported under GAAP. A reconciliation of Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Gross Profit Excluding Depreciation and Amortization, Adjusted Gross Profit Margin Excluding Depreciation and Amortization, Adjusted Sales and Marketing Expense, Adjusted General and Administrative Expense, and Adjusted Research and Development to the most directly comparable GAAP financial measure can be found at the end of this presentation. 2#3Paycor Investment Highlights $28B underserved market with strong growth potential $350M+ FY'21 revenue with 40% + annual bookings growth 2021 04 Payroll Software MARKET LEADER Softwarel Advice FRONT RUNNERS 2021 G Leader Mid-Market SPRING 2021 30+ years in business, 29,000+ customers across all 50 states Subscription-based business model with 99% recurring revenue Capterra SHORTLIST 2021 TOP WORK PLACES 2022 USA Award-winning software and culture TOP WORK BLACK DE&I PRACTICES 111 Ong Chart & Directory C - Who We Are As a leading provider of Human Capital Management (HCM) software for SMBs, we empower leaders to build winning teams by modernizing people management. Paycor Home Company Employee Reporting Me Recurs Good Afternoon, Mich Sumay Mary Co MY TEAM (23 RA na View Al Next Up Lirere ME> New Applicants Q 20 View My Suces Team DATA ALERTS 2 Missing Employee info PUNCH CLOCK 02:34:2 CREATE PUNC Recent Punches ●08:00AM ● oute ●INGRAM Ted Change per Employen Direct Co East Sams 3#4SMB Opportunity is massive and Growing $35B Projected TAM ~58M U.S. SMB 10-1000 employees x $50 Future List PEPM $28B Current TAM ~58M U.S. SMB 10-1000 employees x $40 List PEPM (¹) -8% CAGR Last 5 Years 1% PYCR market share (²) Modern HCM platforms comprise a small portion of the market Source: U.S. Bureau of Labor Statistics, National Business Employment Dynamics Data by Firm Size Class: December 2021. 1. Refers to # of U.S. employees at firms with 10-1000 employees as of December 2021 multiplied by our list per-employee per-month ("PEPM") rate as of 2/3/2022 for our full suite of products. 2. Represents our revenue for the fiscal year ended June 30, 2021 4#5We are Laser Focused on Winning Share in the SMB Segment... иләрои Legacy 1-9 employees G GUSTO zenefits In-house intuit. run POWERED BY 101,000 employees paylocity PAYCHEX® Paycor PAYCHEX FLEX™ Regional ADP Workforce Now paycom® ADP TotalSource 1,000+ employees UKG workday. CERIDIAN GlobalView. ADP Vantage HCM & Paycor Advantage Designed for leaders Tailored by industry Cloud-based Unified, extensible platform Modern user experience 5#6Our Gerry Enps pe Cest frieb ayon kycia que vam ne va TINKAY MEWS www Disruptive SaaS Platform is Differentiated Single Pane of Glass Wiccome to your endlovce pono M-4% A Company Planc - you Con AB Wetwas Adam, MANI aps I walk aw P pa JED -wit T kupon ( ) ( . M G Var 3 Damity OD 3 ( BAIX 1 KOWIE Dames - LOT Hon Panavas NIGE N LIVRE k QUEDO FPS CMENTE PUHO 02:38:18PM (phile. wal WORKFORCE MANAGEMENT Workforce Management PAYCOR TIME SCHEDULING RO Bos Unrivaled Product Depth EMPLOYEE EXPERIENCE Employee Engagement LEARNING MANAGEMENT CAREER MANAGEMENT PAYCOR PULSE HCM Cor for Leaders ONBOARDING.HR PAYROLL - ACA - REPORTING ANALYTICS - MOBILE Benefits Administration BENEFITS ADVISOR BENEFITS ADMINISTRATION OF Talent Management RECRUITING COMPENSATION PERFORMANCE GOALS & OKRS 1-ON-1 COACHING TALENT MANAGEMENT Open, Unified and Interoperable Platform 9.2 Ben Admin ERP Paycard General Ledger Job Board ~200 Partner Ecosystem 401K Extensive API Library Enables Rapid, Deep Integrations Interoperability Engine Paycor HCM Data Model Cloud Agnostic Data Storage POS 6#7Leaders Drive Engagement and Engagement Drives Results Paycor modernizes people management, so leaders can focus on what really matters: Building winning teams that deliver results. Talent Management Onboard, Motivate, Develop Benefits Administration Wellness as an Advantage A WA 2 02:34:2 Recent haches PURPOSE-BUILT FOR Leaders Workforce Management Optimize Labor Spend Employee Experience Build Inclusive Cultures 7#8Our Robust Industry Program Paycor GUIDE Welcome to Guide Elite Overview was THE Community Robust user network with industry-specific thought leadership, user groups and online community Catamas prak CORNER by Paycor of stan, Banesat BE ED BBB + d@ We pl Industry Customer Experience Industry-skilled implementation and service experts providing a seamless transition and ongoing support Ⓡ 1 PUNCHIDO 02:20:19 Product Differentiation Customized organic software with key partner integrations designed for industry leaders Healthcare Recruit and hire skilled nurses, scheduling, and reporting to meet PBJ requirements Restaurants Attract employees with quick hire capabilities and retain them with On Demand Pay Manufacturing Optimize shift coverage with flexible time collection options and easily claim hiring credits Professional Services Engage employees with Talent Management and analyze company performance with robust Analytics Key Integrations Scheduling Compliance Ben Admin Key Integrations POS OnDemand Pay ATS Key Integrations ERP Certified Payroll WOTC Key Integrations Job Boards Benefits 401K#9Powered by a Scalable and Efficient Go-to-Market Engine Sales Expansion Focused on Tier 1 Markets Expanding from Midwest roots in top U.S. cities Seeing improved win rates and deal size ● ● Far West Rocky Mountain FY'21 Revenue Distribution 6-25% 0-5% Southwest 26% + Plains (1) For period ended June 30, 2021. Great Lakes Southeast New England Mideast 20% Tier 1 Sales Coverage (¹) >50% SMB TAM in Top 50 Cities Source of Bookings • 80% from legacy incumbents • 40% from broker channel In-house Regional ADP. PAYCHEX Cloud New 43% FY'21 Bookings Growth 370+ Total Sellers (1) 9#10Continuously Growing PEPM, Targeting $50 by 2024 $27 FY'19 Advanced Analytics Pulse Surveys Scheduling Payroll Based Journal Entries (PBJ) Earned Wage Access (EWA) Career Planning Compensation Management Talent Management $40 February 2022 10#11Strong Revenue Performance Y/Y Growth $328 $291 il FY'19 18% Total Revenue 13% $353 FY'20 FY'21 8% $86 Q2 FY'21 4% $103 Q2 FY'22 20% Adjusted Gross Profit Excluding D & A Adjusted Gross Profit Margin Excluding Depreciation & Amortization 77% FY¹19 $224 76% FY'20 $248 77% FY'21 $272 78% Q2 FY'21 $67 77% Q2 FY'22 $79 Note: FY'19 actuals are the sum of the GAAP Successor Period (period from November 2, 2018 to June 30, 2019) and GAAP Predecessor Period (period from July 1, 2018 to November 1, 2018), and are reported in such a manner throughout this presentation. $ in millions. 11#12Operating Structure Built to Drive Growth G&A R&D S&M Adjusted Operating Expenses as % of Revenue 58% 15% 14% 29% FY'19 57% 15% 13% 29% FY'20 56% 16% 10% 29% FY¹21 55% 16% 11% 29% Q2 FY'21 57% 16% 9% 32% Q2 FY¹22 Adjusted Operating Income Note: $ in millions. Please see Appendix for GAAP to non-GAAP reconciliation. Amounts may not foot due to rounding. Adjusted Operating Income Margin 14% FY¹19 $42 14% FY'20 $46 14% FY¹21 $48 16% Q2 FY'21 $13 10% Q2 FY¹22 $10 12#13Q3 & FY'22 Guidance Total Revenue Year-over-year Growth Adjusted Operating Income Adjusted Operating Income Margin Q3 FY'22 $117 to $118 17.2% to 18.2% $19 to $20 16.2% to 16.9% FY'22 $411 to $415 16.5% to 17.6% $35 to $37 8.5% to 8.9% Note: We are unable to reconcile forward-looking adjusted operating income to forward-looking loss from operations, the most closely comparable GAAP financial measure, because the information needed to provide forward-looking loss from operations and to complete a reconciliation is unavailable at this time without unreasonable effort as the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact loss from operations for these periods but would not impact adjusted operating income. Such items include stock-based award and liability incentive award expenses and corporate adjustments. $ in millions. 13#14Paycor Is Positioned for Significant. Growth Massive, growing & still underserved market Unified, disruptive HCM platform for SMB leaders BE Multiple, proven growth strategies Attractive subscription model & strong financial profile 14#15Appendix Paycor#16ur Transformation Founder-led for ~30 Years Midwestern, Micro-SMBs, Horizontal Payroll, Bank Channel 1990 Founded in Cincinnati, OH 2012 Re-platformed as Cloud-Native Solution Performance Culture with Leadership to Scale National, SMBs with 10-1,000 EES, HCM for Leaders with Vertical Expertise, Broker Channel 2018 Acquired by Apax 2019 Raul Villar joins as CEO New Leadership Team Acquired Ximble 2020 Acquired 7Geese Acquired Rapport 2021 Bookings and Revenue Reacceleration IPO July 2021 16#17Corporate Responsibility is in our DNA DE&I Recognized as a Top Workplace for DE&I in 2021 • Strategic DE&I plan spanning education, transparency, equitable opportunities and purpose for the work 0 • Created DE&I policy, completed pay equity analysis with parity corrections, and established metrics and talent acquisition processes to increase representation of minority groups in 2021 ● Six thriving employee resource groups (ERGs) Information Security • SOC 1 Type 2 and SOC 2 Type 2 Attestations Best-in-class cyber security technologies • Compliance to core data privacy requirements (GDPR, CCPA and U.S. Privacy Shield) Culture & Employee Experience Paycor recognized as a Top Workplace 2021 & 2022 ● Virtual First environment creates flexibility for associates and adds to our ability to hire top talent from across the U.S. and globally • Expanded benefit options including domestic partner coverage and enhanced professional development opportunities with enterprise learning in 2021 L Corporate Governance • Executive-level commitment to operating with the highest ethical standards and promoting a strong corporate culture • Board of Directors that meets or exceeds applicable SEC rules/regulations and Nasdaq standards 17#18Key Definitions "We," "us," "our," "the Company," "Paycor," and similar references refer to Paycor HCM, Inc., and unless otherwise stated, all of its subsidiaries. "Apax Partners," "Apax," or "our Sponsor" refers to Apax Partners L.P., a global private equity firm, collectively, with its affiliates. "Metropolitan statistical areas" refers to the metropolitan statistical areas delineated by the United States Office of Management and Budget as in effect as of the date of this prospectus. "Net revenue retention" refers to the current quarterly period recurring revenue for the cohort of customers at the beginning of the prior year quarterly period, divided by the recurring revenue in the prior year reporting period for that same cohort. In calculating the net revenue retention for a period longer than a quarter, such as a fiscal year, we use the weighted average of the retention rates (calculated in accordance with the preceding sentence) for each applicable quarter included in such period. "Recurring revenue" refers to, with respect to any period, all recurring service revenues attributable to payroll, workforce management, and HR-related cloud-based computing services. "Tier 1 markets" refers to the 15 most populous metropolitan statistical areas in the United States. "Tier 2 markets" refers to the 15 most populous metropolitan statistical areas in the United States other than Tier 1 markets. "Tier 3 markets" refers to the 20 most populous metropolitan statistical areas in the United States other than Tier 1 markets and Tier 2 markets. "Total bookings" with respect to any period is defined as the aggregate year-one values of all new customer contracts acquired during such period, including new sales to existing clients. Total bookings includes both recurring fees and implementation services. "Total customers" refers to a parent company grouping, which may include multiple subsidiary client accounts with separate taxpayer identification numbers. 18#19Non-GAAP Financial Measures Adjusted Gross Profit and Adjusted Gross Profit Margin: We define Adjusted Gross Profit as gross profit before amortization of intangible assets, stock-based compensation expenses, and certain corporate expenses, in each case that are included in costs of recurring revenues. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by total revenues. Adjusted Gross Profit Excluding D&A and Adjusted Gross Profit Margin Excluding D&A: We define Adjusted Gross Profit Excluding D&A as gross profit before amortization of intangible assets, stock-based compensation expenses, certain corporate expenses and depreciation and amortization, in each case that are included in costs of recurring revenues. We define Adjusted Gross Profit Margin Excluding D&A as Adjusted Gross Profit Excluding D&A divided by total revenues. Adjusted Operating Income and Adjusted Operating Income Margin: We define Adjusted Operating Income as loss from operations. before amortization of acquired intangible assets, stock-based award and liability incentive award compensation expenses, and other certain corporate expenses, such as costs related to acquisitions. We define Adjusted Operating Income Margin as Adjusted Operating Income divided by total revenues. Adjusted Operating Expenses: We define Adjusted Sales and Marketing expense as sales and marketing expenses before stock-based award and liability incentive award compensation expenses, and other certain corporate expenses. We define Adjusted General and Administrative expense as general and administrative expenses before amortization of acquired intangible assets, stock-based award and liability incentive award compensation expenses, and other certain corporate expenses. We define Adjusted Research and Development expense as research and development expenses before stock-based award and liability incentive award compensation expenses, and other certain corporate expenses. 19#20GAAP to Non-GAAP Reconciliation Revenue Gross Profit Gross Profit Margin Amortization of intangible assets Stock-based compensation expense Corporate adjustments Adjusted Gross Profit Adjusted Gross Profit Margin Amortization of deferred contract costs Amortization of capitalized software Depreciation Adjusted Gross Profit, Excluding D & A Adjusted Gross Profit Margin, Excluding D&A Note: $ in millions. Amounts may not foot due to rounding. Three Months Ended December 31, 2021 $103.1 $62.0 60.1% $4.9 $1.8 $0.0 $68.7 66.6% $4.1 $5.4 $0.7 $78.9 76.5% Reconciliation to Adjusted Gross Profit Excluding D&A Three Months Ended December 31, 2020 $85.9 $49.0 57.1% $11.7 $0.2 $0.0 $61.0 71.0% $2.5 $3.1 $0.5 $67.1 78.1% Fiscal Year Ended June 30, 2021 $352.8 $198.3 56.2% $46.1 $0.5 $0.0 $244.9 69.4% $10.6 $13.8 $2.6 $271.9 77.1% Fiscal Year Ended June 30, 2020 $327.9 $188.2 57.4% $42.9 $0.6 $1.7 $233.4 71.2% $5.7 $6.9 $2.5 $248.4 75.8% Fiscal Year Ended June 30, 2019 $291.5 $182.0 62.4% $28.1 $0.4 $0.3 $210.7 72.3% $5.8 $5.5 $2.3 $224.4 77.0% 20#21GAAP to Non-GAAP Reconciliation (cont'd) Loss from Operations Operating Margin Amortization of intangible assets Stock-based compensation expense Liability incentive award compensation expense Corporate adjustments Adjusted Operating Income Adjusted Operating Income Margin Note: $ in millions. Amounts may not foot due to rounding. Three Months Ended December 31, 2021 ($33.8) (32.8%) $25.4 $17.2 $0.0 $1.4 $10.3 10.0% Reconciliation to Adjusted Operating Income Three Months Ended December 31, 2020 ($20.9) (24.3%) $31.3 $1.7 $0.0 $1.4 $13.5 15.7% Fiscal Year Ended June 30, 2021 ($89.3) (25.3%) $125.6 $4.2 ($0.2) $7.7 $48.0 13.6% Fiscal Year Ended June 30, 2020 ($94.7) (28.9%) $120.9 $4.9 $3.1 $12.1 $46.3 14.1% Fiscal Year Ended June 30, 2019 ($105.2) (36.1%) $80.1 $6.6 $29.0 $31.5 $41.9 14.4% 21#22GAAP to non-GAAP Reconciliation (cont'd) Sales and Marketing Expense Stock-based compensation expense Liability incentive award compensation expense Corporate adjustments Adjusted Sales and Marketing Expense % of Revenue General and Administrative Expense Amortization of intangible assets Stock-based compensation expense Liability incentive award compensation expense Corporate adjustments Adjusted General and Administrative Expense % of Revenue Research and Development Expense Stock-based compensation expense Liability incentive award compensation expense Corporate adjustments Adjusted Research and Development Expense % of Revenue Note: $ in millions. Amounts may not foot due to rounding. Three Months Ended December 31, 2021 $40.7 ($8.1) $0.0 $0.0 $32.6 31.6% $44.5 ($20.5) ($6.1) $0.0 ($1.4) $16.4 15.9% $10.6 ($1.2) $0.0 $0.0 $9.5 9.2% Reconciliation of Adjusted Operating Expenses Three Months Ended December 31, 2020 $25.5 ($0.6) $0.0 ($0.3) $24.6 28.7% $35.1 ($19.5) ($0.9) ($0.0) ($1.1) $13.5 15.7% $9.4 ($0.0) $0.0 $0.0 $9.4 10.9% Fiscal Year Ended June 30, 2021 $106.1 ($1.4) $0.1 ($1.1) $103.7 29.4% $145.5 ($79.5) ($2.2) $0.0 ($6.5) $57.3 16.3% $36.0 ($0.1) $0.0 ($0.1) $35.9 10.2% Fiscal Year Ended June 30, 2020 $100.0 ($1.7) $0.0 ($2.5) $95.8 29.2% $137.1 ($78.0) ($1.9) ($3.1) ($6.5) $47.7 14.5% $45.9 ($0.8) $0.0 ($1.5) $43.6 13.3% Fiscal Year Ended June 30, 2019 $87.1 ($2.3) $0.0 $0.0 $84.9 29.1% $158.9 ($52.0) ($3.0) ($29.0) ($30.8) $44.2 15.1% $41.1 ($1.0) $0.0 ($0.4) $39.7 13.6% 22