Slide 1: Fiscal 2016 ADP Earnings Call & Webcast
Fiscal 2016 ADP Earnings Call & Webcast July 28, 2016
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 2016 results – revenue growth of 7% reported and 8% constant dollar • Robust new business bookings growth of 12% – ACA solutions contributed meaningfully to the outperformance • Dramatically improved the user experience for employees of our clients • Client revenue retentio
Slide 4: Fiscal 2016 Financial Highlights
Fiscal 2016 Financial Highlights Adjusted EBIT Margin from Continuing Adjusted Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a) (b) Operations (unaudited) (a) $11.7B 19.5% $3.26 $10.9B 18.8% 7% Reported +60 bps $2.89 13% 8% Constant 14% Constant dollar (c) dollar (c)
Slide 5: Fiscal 2016 New Business Bookings and Segment Results
Fiscal 2016 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • h 12% to $1.75 billion • Revenues h 5% Reported • Revenues h 16% representing annualized h 6% Constant dollar • Average worksite employees paid recurring revenues h 13% to 412,000 a
Slide 6: Fiscal 2017 Outlook
Fiscal 2017 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (a) (b) h 7% - 9% Adjusted EBIT Margin (a) h 10% - 12% ES Revenue h 4% - 5% h 25 – 50 basis points PEO Revenue h 14% - 16% ES Margin h ~50 basis points PEO Margin h 50 - 75 basis points Worldwide New Adjusted Effective U.S.
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 2% - 4% Average Average Yield Client Funds Balance Interest from $22.4 billion in FY16 Client Short $4.2 – 4.3B ~0.4% ~$15M • Yield on the Client Funds Portfolio flat Client Extended 9.2 – 9.3B ~1.6%
Slide 9: Client Funds Portfolio at June 30, 2016
Client Funds Portfolio at June 30, 2016 Available for Sale Securities Maturities and Book Yields $5.0B 2.1% 2.3% $4.5B $4.0B $3.5B 1.6% 1.4% $3.0B 2.0% $2.5B $2.0B 2.3% $1.5B 2.4% $1.0B $0.5B 2.2% 2.0% $0.0B FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 >FY24 9
Slide 10: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change FY16 FY15 As Reported Constant Dollar Net earnings from continuing operations $1,493.4 $1,376.5 8% 10% Provision for income taxes 741.3 694.2 All other interest expense 47.9 1.5 All other interest income (13.
Slide 11: Fiscal 2017 Outlook - GAAP Reconciliations
Fiscal 2017 Outlook - GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) Twelve Months Ended Fiscal 2017 June 30, 2016 Forecast Earnings from continuing operations before income taxes margin (GAAP) $2,234.7 19.2% (20) to (45)bps All other interest expense 47.9 +40bps