Slide 1: ADP Earnings Call & Webcast Q1 Fiscal 2022
ADP Earnings Call & Webcast Q1 Fiscal 2022 October 27, 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 Q1 resulting from broad-based outperformance across the business as HCM demand accelerates • ES sales productivity surpassed pre-pandemic levels and reflects positive momentum for overall demand; PEO bookings accelerated significantly • ES and PEO retention levels remained
Slide 4: Q1 Fiscal 2022 Financial Highlights
Q1 Fiscal 2022 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 10% h 17% h 17% h 10% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 140 bps $915M $1.65 $3,832M $1.41 $3,471M $781M Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 (a) For a reconci
Slide 5: Employer Services Segment Results
Q1 Fiscal 2022 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q1 Highlights h 8% h 150 bps • Strong revenue growth supported by favorable bookings and revenue h 8% Organic Constant Currency (a) retention performance versus 29.0% 30.5% expectations $2,377M $2,571M • Sales product
Slide 6: PEO Services Segment Results
Q1 Fiscal 2022 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q1 Highlights h 15% h 70 bps • Robust WSE growth and revenue growth reflecting strong hiring within the client base, strong 14.5% 15.3% bookings results, and retention $1,096M $1,264M outperformance • PEO sales momentum
Slide 7: Fiscal 2022 Outlook
Fiscal 2022 Outlook Fiscal 2021 July 28, 2021 October 27, 2021 (a) (a) (unaudited) Fiscal 2022 Outlook Fiscal 2022 Outlook Revenues $15,005M 6 to 7% 7 to 8% (b) Adj. EBIT Margin 22.6% 25 to 50 bps 50 to 75 bps Total ADP (b) Adj. Effective Tax Rate 22.7% ~22.5% ~22.5% (b) Adj. Diluted EPS $6.02 9 to
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2022 Outlook Average Balance ($) Average Yield Interest ($) Client Short 6.7 – 6.9B ~0.1% ~5M Client Extended 13.6 – 13.8B ~1.4% 190 – 195M Client Long 10.7 – 10.9B ~2.1% 225 – 230M Total Client Funds (a) 31.0 – 31.6B ~1.4% 420 – 430M Corporat