Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2022
ADP Earnings Call & Webcast Q2 Fiscal 2022 January 26, 2022 Copyright © 2022 ADP, Inc.
Slide 2: Forward Looking Statements
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 Q2 represents continuation of momentum from earlier in the year • ES sales productivity ahead of pre-pandemic levels and growth outlook remains robust; PEO sales performance reflects strong demand environment for outsourcing • ES and PEO retention levels continue to outper
Slide 4: Q2 Fiscal 2022 Financial Highlights
Q2 Fiscal 2022 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 9% h 10% h 9% h 9% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 20 bps $930M $1.65 $4,025M $1.52 $3,696M $848M Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 (a) For a reconciliat
Slide 5: Q2 Fiscal 2022 Employer Services Segment Results
Q2 Fiscal 2022 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q2 Highlights h 6% h 40 bps • Revenue outperformance vs expectations supported by strong h 7% Organic Constant Currency (a) bookings, retention, and pays per 30.2% 30.6% control performance $2,511M $2,671M • Sales pro
Slide 6: Q2 Fiscal 2022 PEO Services Segment Results
Q2 Fiscal 2022 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q2 Highlights h 15% i 10 bps • Further acceleration in WSE growth reflecting strong demand environment, high client $1,359M 15.8% 15.7% satisfaction, and continued strong $1,186M hiring trends within client base • PEO bo
Slide 7: Fiscal 2022 Outlook
Fiscal 2022 Outlook Fiscal 2021 July 28, 2021 October 27, 2021 January 26, 2022 (a) (a) (a) (unaudited) Fiscal 2022 Outlook Fiscal 2022 Outlook Fiscal 2022 Outlook Revenues $15,005M 6 to 7% 7 to 8% 8 to 9% (b) Adj. EBIT Margin 22.6% 25 to 50 bps 50 to 75 bps 50 to 75 bps Total ADP (b) Adj. Effective
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2022 Outlook Average Balance ($) Average Yield Interest ($) Client Short 7.9 – 8.1B ~0.1% ~10M Client Extended 13.9 – 14.1B ~1.4% 200 – 205M Client Long 10.5 – 10.7B ~2.2% 230 – 235M Total Client Funds (a) 32.3 – 32.9B ~1.4% 440 – 450M Corpora