Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2021
ADP Earnings Call & Webcast Q4 Fiscal 2021 July 28, 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 Q4 results capped a resilient fiscal 2021 performance across multiple fronts and exceeded our expectations • ES new business bookings growth of 174% for the quarter and 23% for the year to $1.5 billion, with productivity for the year at ~90% of pre-pandemic levels • Contin
Slide 4: Q4 Fiscal 2021 Financial Highlights
Q4 Fiscal 2021 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 11% h 4% h 5% h 9% Organic Constant Currency (a) Adjusted EBIT (a) Margin i 120 bps $3,737M $3,377M $678M $1.14 $1.20 $653M Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 (a) For a reconcilia
Slide 5: Fiscal 2021 Financial Highlights
Fiscal 2021 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 3% h 1% h 2% h 2% Organic Constant Currency (a) Adjusted EBIT (a) Margin i 40 bps $3,384M $5.92 $6.02 $14,590M $15,005M $3,349M FY20 FY21 FY20 FY21 FY20 FY21 (a) For a reconciliation of these non
Slide 6: Q4 Fiscal 2021 Employer Services Segment Results
Q4 Fiscal 2021 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q4 Highlights h 10% i 90 bps • Revenue performance driven by strong bookings, strong retention, h 8% Organic Constant Currency (a) and lapping of prior year pandemic- 25.6% 24.7% related declines in volume-based $2,29
Slide 7: Q4 Fiscal 2021 PEO Services Segment Results
Q4 Fiscal 2021 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q4 Highlights h 12% h 340 bps • Better than expected revenue driven by strong WSE performance as well as payroll per WSE 14.3% $1,082M $1,212M • Margin benefiting from incremental 10.9% revenues, expense efficiency, lowe
Slide 8: Fiscal 2022 Outlook
Fiscal 2022 Outlook Fiscal 2021 July 28, 2021 (a) (unaudited) Fiscal 2022 Outlook Revenues $15,005M 6 to 7% (b) Adj. EBIT Margin 22.6% 25 to 50 bps Total ADP (b) Adj. Effective Tax Rate 22.7% ~22.5% (b) Adj. Diluted EPS $6.02 9 to 11% Revenues $10,195M 4 to 6% Margin 29.9% 50 to 75 bps Employer Serv
Slide 9: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2022 Outlook Average Balance ($) Average Yield Interest ($) Client Short 6.1 – 6.3B ~0.1% ~5M Client Extended 13.3 – 13.5B ~1.4% 190 – 195M Client Long 10.1 – 10.3B ~2.1% 210 – 215M Total Client Funds (a) 29.5 – 30.1B ~1.4% 405 – 415M Corporat
Slide 10: Appendix: Client Fund Portfolio Maturities
Appendix: Client Fund Portfolio Maturities Client Funds Portfolio at June 30, 2021 Available for Sale Securities Maturities and Book Yields $6 Billions 1.1% 2.2% $5 $6 1.1% 2.2% 2.3% $5 $4 2.2% 1.5% $4 2.3% $3 1.5% 2.3% $3 $2 1.7% 1.7% $2 1.9% 2.0% 2.3% $1 1.9% 2.3% 2.0% $1 $0 $0 FY22 FY23 FY24 FY25