Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2020
ADP Earnings Call & Webcast Q4 Fiscal 2020 July 29, 2020 Copyright © 2020 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 in the face of economic headwinds; organic constant currency revenue (a) decline of 2%, adjusted EBIT (a) margin increase of 10 basis points, and flat adjusted diluted EPS (a) growth • Unprecedented global employment decline in Q4 with US pays per control declin
Slide 4: Q4 Fiscal 2020 Financial Highlights
Q4 Fiscal 2020 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) i 3% i 2% Flat i 2% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 10 bps $3,479M $3,377M $669M $653M $1.14 $1.14 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 (a) For a reconciliati
Slide 5: Fiscal 2020 Financial Highlights
Fiscal 2020 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 3% h 6% h 9% h 4% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 60 bps $3,349M $5.92 $14,110M $14,590M $3,156M $5.45 FY19 FY20 FY19 FY20 FY19 FY20 (a) For a reconciliation of these non
Slide 6: Employer Services Segment Results
Q4 Fiscal 2020 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q4 Highlights i 6% Flat • Significant headwinds driven by COVID-19; revenue and margin i 5% Organic Constant Currency (a) performance better than 25.7% 25.7% expectations $2,435M $2,296M • PPC improved gradually throu
Slide 7: PEO Services Segment Results
Q4 Fiscal 2020 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q4 Highlights h 4% i 450bps • Better-than-expected WSE and revenue growth in the quarter, driven by stronger retention $1,043M $1,082M 15.4% • Same-store employment volume in 10.9% line with expectations; more resilient
Slide 8: Macro Assumptions for Fiscal 2021
Macro Assumptions for Fiscal 2021 Macro Driver Q4 FY 2020 FY 2021 Negative through Q3, positive in Q4; Pays Per Control (10.8)% (3) – (4)% average for full year Elevated out-of-business losses in down Out-of-Business Continued elevated losses through Q3 and mid-market, in line with expectations Clie
Slide 9: Fiscal 2021 Outlook
Fiscal 2021 Outlook Fiscal 2020 (a) Fiscal 2021 Outlook (unaudited) Revenues $14,590M (1) – (4)% (b) Adj. EBIT Margin 23.0% ~(300) bps Total ADP (b) Adj. Effective Tax Rate 22.6% 23.1% (b) Adj. Diluted EPS $5.92 (13) – (18)% Revenues $10,087M (3) – (5)% Margin 30.4% ~(300) bps Employer Services ES N
Slide 10: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2021 Outlook Average Balance ($) Average Yield Interest ($) Client Short 5.2 – 5.3B ~0.1% ~5M Client Extended 10.3 – 10.5B 1.7 – 1.8% 180 – 185M Client Long 8.4 – 8.6B 2.4 – 2.5% 205 – 210M Total Client Funds (a) 23.9 – 24.4B ~1.6% 390 – 400M