Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — Q2 2019 Earnings Presentation

7 slides from Automatic Data Processing's earnings presentation, Jan 30, 2019

  1. Slide 1: 2Q Fiscal 2019 ADP Earnings Call & Webcast

    2Q Fiscal 2019 ADP Earnings Call & Webcast January 30, 2019 Copyright © 2019 ADP, LLC

  2. 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

  3. Slide 3: CEO's Perspective

    CEO’s Perspective • Strong execution in the quarter with revenue growth of 8% and adjusted diluted EPS (a) growth of 30% • Transformation initiatives and operating efficiencies driving 320 basis points in adjusted EBIT margin (a) expansion • Solid PEO performance with 9% Average Worksite Employee gr

  4. Slide 4: 2Q Fiscal 2019 Financial Highlights

    2Q Fiscal 2019 Financial Highlights Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) (unaudited) (unaudited) (unaudited) $3.5B $787M $1.34 $3.2B  8% Reported  8% Organic $624M  26%  30% Constant $1.03 Currency (a) 2Q 2018 2Q 2019 2Q 2018 2Q 2019 2Q 2018 2Q 2019 (a) For a reconciliation

  5. Slide 5: 2Q Fiscal 2019 Segment Results

    2Q Fiscal 2019 Segment Results Employer Services PEO Services • Revenues  7% Reported • Revenues  12%  7% Organic Constant Currency (a) • Revenues excluding zero-margin benefits • ES New Business Bookings  1% pass-throughs  15% • U.S. Pays Per Control  2.3% • Average Worksite Employees paid 

  6. Slide 6: Fiscal 2019 Outlook

    Fiscal 2019 Outlook Aug 1, 2018 Oct 31, 2018 Jan 30, 2019 Outlook (a) Outlook (a) Outlook (a) Total ADP Revenues  5% - 7%  6% - 7%  6% - 7% Adj. EBIT Margin (b)  100 - 125 bps  100 - 125 bps  125 - 150 bps Adj. Effective Tax Rate (b)  Decline to 25.1%  Decline to 24.5%  Decline to 24.4% Adj

  7. Slide 7: Appendix: Client Funds Investment Strategy Outlook

    Appendix: Client Funds Investment Strategy Outlook • Average Client Funds Balances  ~4% from $24.3 Fiscal 2019 Outlook billion in FY18, compared to prior outlook of Average Client Funds  3% - 4% Balance ($) Average Yield Interest ($) • Yield on the Client Funds Portfolio  ~30bps Client Short ~4.7

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