Slide 1: 3Q Fiscal 2017 ADP Earnings Call & Webcast
3Q Fiscal 2017 ADP Earnings Call & Webcast May 3, 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 revenue and EPS growth during the quarter • Quarterly retention decline of 170 basis points concentrated in legacy platforms in mid and upmarket; continued strong retention on strategic platforms • Softer new business bookings mainly due to strong demand for ACA-related sol
Slide 4: Q3 Fiscal 2017 Financial Highlights
Q3 Fiscal 2017 Financial Highlights Pretax Earnings from Continuing Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (b) Operations (unaudited) $1.31 $3.4B $0.83B $3.2B $0.79B $1.17 12% 5% Reported 4%(c) 6% Organic (a) (a) “Organic” growth rates exclude the results of ou
Slide 5: 3Q Fiscal 2017 New Business Bookings and Segment Results
3Q Fiscal 2017 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • 7% compared with 3Q FY16 • Revenues h 2% Reported • Revenues h 12% representing annualized recurring h 3% Organic (a) • Average worksite employees paid revenues anticipated fro
Slide 6: Fiscal 2017 Outlook
Fiscal 2017 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (a) (b) h ~6% Reported* Adjusted EBIT Margin (a) h 13% - 14% ES Revenue h 3% - 4%* h ~50 basis points PEO Revenue h ~13% ES Margin h 25 - 50 basis points PEO Margin h At least 100 basis points * Includes a one percentage po
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY17 Forecast • Average Client Funds Balances h ~3% from Average Average Yield Client Funds Balance Interest $22.4 billion in FY16 Client Short ~$4.5B ~0.6% ~$25M • Yield on the Client Funds Portfolio flat compared Client Extended ~9.5B ~1.7% ~160M
Slide 9: Fiscal 2017 Outlook - GAAP Reconciliations
Fiscal 2017 Outlook - GAAP Reconciliations (Continuing Operations, $ in millions) Twelve Months Ended Fiscal 2017 June 30, 2016 Forecast Earnings from continuing operations before income taxes margin (GAAP) $2,234.7 19.2% ~+140bps All other interest expense 47.9 +40bps +5bps (a) All other interest i
Slide 10: Fiscal 2017 Outlook - GAAP Reconciliations
Fiscal 2017 Outlook - GAAP Reconciliations (Continuing Operations) Twelve Months Ended Fiscal 2017 June 30, 2016 Forecast Diluted EPS from continuing operations (GAAP) $3.25 12% 17% - 18% Gain on sale of AMD – 1Q F16 (0.05) (1%) +1% (a) Gain on sale of building – 2Q F16 (0.02) (1%) +1% (b) Workforce
Slide 11: ADP Guidance History
ADP Guidance History (a) (c) (a) (c) (a) (d) 5/3/17 Forecast 2/1/17 Forecast 11/2/16 Forecast 7/28/16 Forecast (d) Total ADP Revenues h ~6% Reported h ~6% Reported h 7% - 8% Reported h 7% - 9% Reported (b) Adj. EBIT Margin h ~50 bps h ~50 bps h ~50 bps h 25 - 50 bps (b) Adj. Effective Tax Rate Dec