Slide 1: ADP Earnings Call & Webcast Q1 Fiscal 2021
ADP Earnings Call & Webcast Q1 Fiscal 2021 October 28, 2020 Copyright © 2020 ADP, Inc.
Slide 2: Forward Looking Statements; Non-GAAP Measures
Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by
Slide 3: CEO’s Perspective
CEO’s Perspective • Strong Q1 FY21 results driven by revenue and margin outperformance versus expectations – Revenue decline of 1%, adjusted EBIT (a) margin increase of 120 basis points, and adjusted diluted EPS (a) growth of 5% • Employment gradually improved with US pays per control decline of (9)
Slide 4: Q1 Fiscal 2021 Financial Highlights
Q1 Fiscal 2021 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) i 1% h 5% h 5% i 1% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 120 bps $3,496M $3,471M $781M $1.34 $1.41 $745M Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 (a) For a reconciliat
Slide 5: Employer Services Segment Results
Q1 Fiscal 2021 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q1 Highlights i 3% h 120 bps • Record Q1 ES bookings and retention driving significant revenue i 3% Organic Constant Currency (a) upside to expectations 27.8% 29.0% $2,441M $2,377M • PPC in line with expectations • Cl
Slide 6: PEO Services Segment Results
Q1 Fiscal 2021 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q1 Highlights h 4% h 40 bps • Better-than-expected revenue and WSE performance in the quarter 14.1% 14.5% • WSE outperformance on stronger $1,057M $1,096M retention • Same-store pays performance down mid-single digits, i
Slide 7: Updated Macroeconomic Assumptions for Fiscal 2021
Updated Macroeconomic Assumptions for Fiscal 2021 Macro Driver Prior Current Negative through Q3, positive in Q4; Pays Per Control Unchanged (4) to (3)% average for full year Out-of-Business Elevated losses Q1 through Q3 Elevated losses in Q2 and Q3 Client Funds Balances Balance decline of (8) to (6
Slide 8: Fiscal 2021 Outlook
Fiscal 2021 Outlook Fiscal 2020 July 29, 2020 October 28, 2020 (a) (a) (unaudited) Fiscal 2021 Outlook Fiscal 2021 Outlook Revenues $14,590M (4) to (1)% (1) to 1% (b) Adj. EBIT Margin 23.0% ~(300) bps (150) to (100) bps Total ADP (b) Adj. Effective Tax Rate 22.6% 23.1% 23.1% (b) Adj. Diluted EPS $5.
Slide 9: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2021 Outlook Average Balance ($) Average Yield Interest ($) Client Short 5.9 – 6.0B ~0.1% ~10M Client Extended 10.7 – 10.9B 1.7 – 1.8% 185 – 190M Client Long 8.8 – 9.0B 2.3 – 2.4% 205 – 210M Total Client Funds (a) 25.4 – 25.9B ~1.6% 400 – 410M