Slide 1: ADP Earnings Call & Webcast Q3 Fiscal 2021
ADP Earnings Call & Webcast Q3 Fiscal 2021 April 28, 2021 Copyright © 2021 ADP, Inc.
Slide 2: Forward Looking Statements; 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 Q3 FY21 results driven by continued resilience in revenue and outperformance in margin versus expectations • Reacceleration in Q3 ES New Business Bookings to 7% growth o Sales performance improved consistently through the quarter o YTD FY21 sales ahead of FY20 and FY19 lev
Slide 4: Q3 Fiscal 2021 Financial Highlights
Q3 Fiscal 2021 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 1% i 2% i 2% h 1% Organic Constant Currency (a) Adjusted EBIT (a) Margin i 90 bps $1.92 $1.89 $4,048M $4,102M $1,097M $1,077M Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 (a) For a reconcil
Slide 5: Employer Services Segment Results
Q3 Fiscal 2021 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q3 Highlights i 1% i 120 bps • Broadly resilient revenue performance across the business i 2% Organic Constant Currency (a) 36.4% 35.3% • Record Q3 retention for ES, $2,812M $2,780M offsetting softer-than-expected seq
Slide 6: PEO Services Segment Results
Q3 Fiscal 2021 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q3 Highlights h 7% h 100 bps • Better-than-expected revenue and WSE performance trends continued into Q3 $1,324M 14.0% 15.0% $1,238M • Revenues benefiting from stronger- than-expected retention and higher wages per WSE Q
Slide 7: Fiscal 2021 Outlook
Fiscal 2021 Outlook July 29, 2020 October 28, 2020 January 27, 2021 April 28, 2021 Fiscal 2020 Fiscal 2021 Fiscal 2021 Fiscal 2021 Fiscal 2021 (unaudited) (a) (a) (a) (a) Outlook Outlook Outlook Outlook Revenues $14,590M (4) to (1)% (1) to 1% 1 to 3% 2 to 3% (b) Adj. EBIT Margin 23.0% ~(300) bps (15
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2021 Outlook Average Balance ($) Average Yield Interest ($) Client Short 6.5 – 6.6B ~0.1% ~5M Client Extended 11.1 – 11.2B 1.7 – 1.8% ~190M Client Long 8.9 – 9.0B 2.3 – 2.4% ~220M Total Client Funds (a) 26.5 – 26.8B ~1.6% ~415M Corporate Exten