Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2022
ADP Earnings Call & Webcast Q4 Fiscal 2022 July 27, 2022 Copyright © 2022 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: Highlights and Perspective
Highlights and Perspective • Strong Q4 results capped a very successful FY22 with performance exceeding our expectations on multiple fronts • Record Q4 ES new business bookings produced FY22 growth of 15%; $1.7 billion for the year • ES retention at 92.1% for FY22 near record levels of prior fiscal
Slide 4: Q4 Fiscal 2022 Financial Highlights
Q4 Fiscal 2022 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 10% h 21% h 25% h 12% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 170 bps $1.50 $819M $4,128M $3,737M $678M $1.20 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 (a) For a reconci
Slide 5: Fiscal 2022 Financial Highlights
Fiscal 2022 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 10% h 14% h 16% h 10% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 90 bps $3,872M $7.01 $16,498M $15,005M $3,384M $6.02 FY21 FY22 FY21 FY22 FY21 FY22 (a) For a reconciliation of these
Slide 6: Employer Services Segment Results
Q4 Fiscal 2022 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q4 Highlights h 8% h 140 bps • Revenue growth and outperformance vs expectations supported by h 9% Organic Constant Currency (a) accelerating bookings growth, strong $2,723M 26.0% retention, and robust pays per contro
Slide 7: PEO Services Segment Results
Q4 Fiscal 2022 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q4 Highlights h 16% h 260 bps • Continued strong WSE growth driven by healthy demand environment and ongoing hiring $1,409M 16.9% trends within client base $1,212M 14.3% • PEO sales momentum continued in Q4 with strong b
Slide 8: Fiscal 2023 Outlook
Fiscal 2023 Outlook Fiscal 2022 July 27, 2022 (a) (unaudited) Fiscal 2023 Outlook Revenues $16,498M 7 to 9% (b) Adj. EBIT Margin 23.5% 100 to 125 bps Total ADP (b) Adj. Effective Tax Rate 22.5% ~23% (b) Adj. Diluted EPS $7.01 13 to 16% Revenues $10,968M 6 to 8% Margin 31.1% 175 to 200 bps Employer E
Slide 9: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2023 Outlook Average Balance ($) Average Yield Interest ($) Client Short 6.5 – 6.7B ~3.0% 190 – 200M Client Extended 15.4 – 15.6B ~1.7% 255 – 260M Client Long 11.9 – 12.2B ~2.3% 275 – 280M Total Client Funds (a) 33.8 – 34.5B ~2.2% 720 – 740M C
Slide 10: Appendix: Client Fund Portfolio Maturities
Appendix: Client Fund Portfolio Maturities Portion of portfolio maturing 10 Copyright © 2022 ADP, Inc.