Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2021
ADP Earnings Call & Webcast Q2 Fiscal 2021 January 27, 2021 Copyright © 2021 ADP, Inc.
Slide 2: Forward Looking Statements and 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 Q2 FY21 results driven by revenue and margin outperformance versus expectations • Continued sequential employment improvement with reduced quarterly declines in U.S. Pays Per Control • Q2 ES New Business Bookings performance in-line with expectations • Total sales in 1H21
Slide 4: Q2 Fiscal 2021 Financial Highlights
Q2 Fiscal 2021 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 1% i 1% Flat Flat Organic Constant Currency (a) Adjusted EBIT (a) Margin i 30 bps $854M $848M $1.52 $1.52 $3,670M $3,696M Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 (a) For a reconciliati
Slide 5: Q2 Fiscal 2021 Employer Services Segment Results
Q2 Fiscal 2021 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q2 Highlights i 1% Flat • Record Q2 retention, slightly better- than-expected PPC support revenue i 2% Organic Constant Currency (a) upside to expectations 30.2% 30.2% $2,538M $2,511M • ES New Business Bookings in-lin
Slide 6: Q2 Fiscal 2021 PEO Services Segment Results
Q2 Fiscal 2021 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q2 Highlights h 5% h 100 bps • Better-than-expected revenue and WSE performance in the quarter 14.8% 15.8% • Revenues benefiting from both $1,135M $1,186M stronger-than-expected retention and wage growth • Same-store pay
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 Limited effects from out-of-business losses Out-of-Business Elevated losses in Q2 and Q3 over rest of year; retention to incr
Slide 8: Fiscal 2021 Outlook
Fiscal 2021 Outlook Fiscal 2020 July 29, 2020 October 28, 2020 January 27, 2021 (a) (a) (a) (unaudited) Fiscal 2021 Outlook Fiscal 2021 Outlook Fiscal 2021 Outlook Revenues $14,590M (4) to (1)% (1) to 1% 1 to 3% (b) Adj. EBIT Margin 23.0% ~(300) bps (150) to (100) bps (100) to (50) bps Total ADP (b)
Slide 9: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2021 Outlook Average Balance ($) Average Yield Interest ($) Client Short 6.0 – 6.1B ~0.1% ~5M Client Extended 10.8 – 11.0B 1.7 – 1.8% 185 – 190M Client Long 9.2 – 9.4B 2.3 – 2.4% 215 – 220M Total Client Funds (a) 26.0 – 26.5B ~1.6% 405 – 415M