Slide 1: 1Q Fiscal 2018 ADP Earnings Call & Webcast
1Q Fiscal 2018 ADP Earnings Call & Webcast November 2, 2017
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 • Solid first quarter revenue growth of 6% with adjusted diluted EPS growth of 6% in the quarter • Quarterly retention improvement of 160 basis points • Robust PEO performance with 14% revenue growth and 10% growth in average Worksite Employees • Continued investments in innovation
Slide 4: 1Q Fiscal 2018 Financial Highlights
1Q Fiscal 2018 Financial Highlights Adjusted Earnings before Interest and Adjusted Diluted EPS Total Revenues (unaudited) Taxes (EBIT) (unaudited) (a) (b) (unaudited) (a) $3.1B $0.91 $2.9B $0.6B $0.6B $0.86 6% Reported 6% -3% 6% Organic (c) (a) “Adjusted” results exclude charges/reversals related to
Slide 5: 1Q Fiscal 2018 New Business Bookings and Segment Results
1Q Fiscal 2018 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • 3% compared with Q1 FY17 • Revenues h 2% Reported • Revenues h 14% representing annualized h 3% Organic (a) • Average worksite employees paid recurring revenues anticipated h 1
Slide 6: Fiscal 2018 Outlook
Fiscal 2018 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (b) h 6% - 8% Reported (a) Adjusted EBIT Margin (b) h 5% - 7% ES Revenue h 4% - 5% (a) 50 - 25 basis points Expected to be below forecasted range in PEO Revenue h 11% - 13% Expected to be below forecasted range 1H and abo
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy • Average Client Funds Balances h ~3% from FY18 Forecast $23.0 billion in FY17 compared to the prior forecast Average Client Funds of h 2% to 3% Balance Average Yield Interest • Yield on the Client Funds Portfolio h ~20bps Client Short $4.5 – 4.6B
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
Slide 10: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 1Q FY18 1Q FY17 As Reported Constant Dollar Net earnings $401.5 $368.7 9% 8% Provision for income taxes 146.7 160.0 All other interest expense (a) 15.0 15.0 All other interest income (a) (6.3) (4.8) Service A
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% ~(190) – (165)bps All other interest expense (a) 59.3 +50bps - All other interest income (b) (22.4) (20
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% (1)% - 1% Gain on sale of businesses – 2Q F17 (a) (0.27) (7%) +7% Workforce Optimization Effort – 4Q F17 (b) (0.01) (0%) +0% Service Alignment Initia
Slide 13: ADP Fiscal 2018 Guidance History
ADP Fiscal 2018 Guidance History (a) 11/2/17 Forecast 7/27/17 Forecast (b) Total ADP Revenues h 6% - 8% Reported h 5% - 6% Reported (c) Adj. EBIT Margin 50 - 25 bps 50 - 25 bps (c) Adj. Effective Tax Rate h Increase to 31.7% h Increase to 33.0% (c) Adj. Diluted EPS h 5% - 7% h 2% - 4% Employer S