Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — Q3 2018 Earnings Presentation

13 slides from Automatic Data Processing's earnings presentation, May 2, 2018

  1. Slide 1: 3Q Fiscal 2018 ADP Earnings Call & Webcast

    3Q Fiscal 2018 ADP Earnings Call & Webcast May 2, 2018 Copyright © 2018 ADP, LLC. Proprietary and Confidential.

  2. 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

  3. Slide 3: CEO's Perspective

    CEO’s Perspective • Solid third quarter: revenue growth of 8% with diluted EPS growth of 11% and adjusted diluted EPS growth of 16% • Investments in product and service driving retention – quarterly improvement of 170 basis points • Growing demand for ADP’s HCM solutions – quarterly new business boo

  4. Slide 4: 3Q Fiscal 2018 Financial Highlights

    3Q Fiscal 2018 Financial Highlights Adjusted Earnings before Interest Adjusted Diluted EPS Total Revenues (unaudited) and Taxes (EBIT) (unaudited) (a) (b) (unaudited) (a) $3.7B $1.52 $901M $3.4B 8% Reported $838M 8% $1.31 16% 6% Organic (c) (a) “Adjusted Earnings before Interest and Taxes (EBIT)” an

  5. Slide 5: 3Q Fiscal 2018 New Business Bookings and Segment Results

    3Q Fiscal 2018 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings •  9% compared with Q3 FY17 • Revenues  7% Reported • Revenues  10% representing annualized  4% Organic (a) • Average worksite employees paid recurring revenues anticipated • C

  6. Slide 6: Fiscal 2018 Outlook

    Fiscal 2018 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (b)  7% - 8% Reported (a) Adjusted EBIT Margin (b) ~Flat  16% - 17%  ES Revenue  ~5% (a)  ES Margin ~Flat  PEO Revenue  ~12%  PEO Margin ~Flat Worldwide New Adjusted Effective U.S. Pays per Control % Business Bookings Tax R

  7. Slide 7: Appendix

    Appendix 7 Copyright © 2018 ADP, LLC. Proprietary and Confidential.

  8. Slide 8: Client Funds Portfolio Extended Investment Strategy

    Client Funds Portfolio Extended Investment Strategy • Average Client Funds Balances  ~5% from $23.0 FY18 Forecast billion in FY17 compared to the prior forecast of Average Client Funds  4% - 5% Balance ($) Average Yield Interest ($) • Yield on the Client Funds Portfolio  ~20bps Client Short ~4.8B

  9. Slide 9: GAAP Reconciliations

    GAAP Reconciliations In addition to our GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods: Adjusted Financial Measure U.S. GAAP Mea

  10. Slide 10: GAAP Reconciliations

    GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 3Q FY18 3Q FY17 As Reported Constant Currency Net earnings $643.1 $587.9 9% 8% Provision for income taxes 209.5 240.0 All other interest expense (a) 14.8 14.6 All other interest income (a) (6.1) (5.2) Gain on

  11. Slide 11: Fiscal 2018 Outlook - GAAP Reconciliations

    Fiscal 2018 Outlook - GAAP Reconciliations (Continuing Operations, $ in millions) Twelve Months Ended Fiscal 2018 June 30, 2017 Forecast Earnings before income taxes / margin (GAAP) $2,531.1 20.4% ~(160)bps All other interest expense (a) 59.3 +50bps - All other interest income (a) (22.4) (20)bps - G

  12. Slide 12: Fiscal 2018 Outlook - GAAP Reconciliations

    Fiscal 2018 Outlook - GAAP Reconciliations (Continuing Operations) Twelve Months Ended Fiscal 2018 June 30, 2017 Forecast Diluted EPS (GAAP) $3.85 18% 11% - 12% Gain on sale of businesses – 2Q F17 (a) (0.27) (7%) ~ +7% Workforce Optimization Effort – 4Q F17 (b) (0.01) (0%) ~ +0% Transformation initi

  13. Slide 13: ADP Fiscal 2018 Guidance History

    ADP Fiscal 2018 Guidance History (a) (a) (b) 5/2/18 Forecast 1/31/18 Forecast 11/2/17 Forecast 7/27/17 Forecast (c) Total ADP Revenues  7% - 8% Reported  7% - 8% Reported  6% - 8% Reported  5% - 6% Reported (d) Adj. EBIT Margin ~Flat  ~ 50 bps  50 - 25 bps  50 - 25 bps (d) Adj. Effective Tax

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