Slide 1: 1Q Fiscal 2016 ADP Earnings Call & Webcast
1Q Fiscal 2016 ADP Earnings Call & Webcast October 28, 2015
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 • Continued strong performance in new business bookings – now forecasting fiscal 2016 growth of at least 10% • Investing in operational resources to support HCM solutions • Ongoing commitment to shareholder friendly actions • Continued focus on client retention • Full year earnings
Slide 4: 1Q Fiscal 2016 Financial Highlights
1Q Fiscal 2016 Financial Highlights Adj. EBIT Margin from Continuing Adj. Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a)(b) Operations (unaudited) (a) $0.68 $2.7 B $0.62 10% Growth $2.6 B 6% Growth 17.5% 17.6% +10 bps 11% Constant 9% Constant Dollar (c) Dollar (c)
Slide 5: New Business Bookings and Reportable Segment Results
New Business Bookings and Reportable Segment Results Worldwide New Employer Services PEO Services Business Bookings • 13% representing • Revenues 3% Reported • Revenues 18% annualized recurring 7% Constant dollar • Average worksite employees paid revenues anticipated • Worldwide client reven
Slide 6: Fiscal 2016 Outlook
Fiscal 2016 Outlook Revenues % Margin Expansion Adj. Diluted EPS 7% - 8% Growth ADP Adjusted EBIT Margin 12% - 14% Growth 8% - 9% Constant Dollar ~ 50 basis points 13% - 15% Constant Dollar Revised down from prior forecast of 7% - 9% ES Margin ~100 basis points Expected to be at th
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY16 Forecast • Average Client Funds Balances 3-5% from $21.8 billion in FY15; includes anticipated Average Average Yield Client Funds Balance Interest negative impact of one percentage point from unfavorable foreign currency translation Client S
Slide 9: 1Q Fiscal 2016 Financial Summary
1Q Fiscal 2016 Financial Summary (Continuing Operations) 1Q FY16, 1Q FY16, Actual As Adjusted(a) Revenues 6% 6% Earnings Before Interest, Taxes (EBIT)(b) 13% 6% EBIT Margin(b) 120 bps 10 bps Effective Tax Rate 90 bps 50 bps Net Earnings 14% 6% Avg. Diluted Shares Outstanding 3% 3% Dilute
Slide 10: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 1Q FY16 1Q FY15 As Reported Constant Dollar Earnings before Income Taxes $505.0 $450.4 12% 14% Interest Expense 3.0 0.4 Interest Income (2.0) (2.2) Earnings before Taxes, Interest (EBIT) $506.0 $448.6 Gain on