Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2020
ADP Earnings Call & Webcast Q2 Fiscal 2020 January 29, 2020 Copyright © 2020 ADP, LLC
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 identifie
Slide 3: CEO's Perspective
CEO’s Perspective • Strong overall quarter with 5% revenue growth, 70bps adjusted EBIT (a) margin expansion, and 13% adjusted diluted EPS (a) growth • ES New Business Bookings growth of 3% driven by continued solid U.S. performance, offset by international and multinational • Continued progress and
Slide 4: Midpoint Lookback of FY21 Targets
Midpoint Lookback of FY21 Targets (unaudited) Average growth rates (a) through midpoint of three-year Average Growth Rate Key Metric Target CAGR (b) FY18 – FY21 period reflect strong progress: Q1 FY19 – Q2 FY20 (a) • Worldwide New Business Bookings growth in middle Worldwide New Business 7 – 9% 8% B
Slide 5: Q2 Fiscal 2020 Financial Highlights
Q2 Fiscal 2020 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 5% h 9% h 13% h 6% Organic Constant Currency (a) $1.52 $854M $1.34 $3.5B $3.7B $787M Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 (a) For a reconciliation of these non-GAAP financial metric
Slide 6: Q2 Fiscal 2020 Employer Services Segment Results
Q2 Fiscal 2020 Employer Services Segment Results (unaudited) ES Revenues ES Margin Highlights h 4% h 30bps • Revenue growth slightly ahead of expectations h 4% Organic Constant Currency (a) • Solid ES New Business Bookings 29.9% 30.2% $2.5B $2.5B performance in the U.S. offset by lower than expected
Slide 7: Q2 Fiscal 2020 PEO Services Segment Results
Q2 Fiscal 2020 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Highlights h 9% i 30bps • Strong double-digit bookings growth; continue to expect improvement in Average WSE growth through the remainder of the year $1.0B $1.1B 15.1% 14.7% • Margins impacted by increased selling expens
Slide 8: Fiscal 2020 Outlook
Fiscal 2020 Outlook Fiscal 2019 July 31, 2019 October 30, 2019 January 29, 2020 (a) (b) (b) (b) Revised , unaudited Fiscal 2020 Outlook Fiscal 2020 Outlook Fiscal 2020 Outlook Revenues $14,110M h 6% - 7% h 6% - 7% h 6% (c) Adj. EBIT Margin 22.4% h 100 - 125 bps h 100 - 125 bps h 100 - 125 bps Total
Slide 9: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2020 Outlook Average Balance ($) Average Yield Interest ($) Client Short ~4.9B ~1.5% 70 - 75M Client Extended ~11.7B ~2.1% 240 - 245M Client Long ~9.9B ~2.6% ~260M Total Client Funds (a) ~26.5B ~2.2% 570 - 580M Corporate Extended Interest Inco