Slide 1: 1Q Fiscal 2017 ADP Earnings Call & Webcast
1Q Fiscal 2017 ADP Earnings Call & Webcast November 2, 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 1Q 2017 results – revenue growth of 7% reported and 8% constant dollar – strong margin expansion • Flat retention excluding a single client loss within our Consumer Health Spending Account (CHSA) business • Newest HCM innovations continue to receive positive market recognit
Slide 4: 1Q Fiscal 2017 Financial Highlights
1Q Fiscal 2017 Financial Highlights Adjusted EBIT Margin from Continuing Adjusted Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a) (b) Operations (unaudited) (a) 19.8% $0.86 $2.9B +230 bps 26% $2.7B 17.6% $0.68 7% Reported 8% Constant dollar (c) (a) “Adjusted” result
Slide 5: 1Q Fiscal 2017 New Business Bookings and Segment Results
1Q Fiscal 2017 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • Flat compared with 1Q FY16 • Revenues h 6% • Revenues h 13% representing annualized recurring • Client revenue retention • Average worksite employees paid revenues anticipated fr
Slide 6: Fiscal 2017 Outlook
Fiscal 2017 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (a) (b) h 7% - 8% Adjusted EBIT Margin (a) h 11% - 13% ES Revenue h 4% - 5% h ~50 basis points PEO Revenue h 14% - 16% ES Margin h ~50 basis points PEO Margin h ~75 basis points Worldwide New Adjusted Effective U.S. Pays pe
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% from Average Average Yield Client Funds Balance Interest $22.4 billion in FY16 Client Short $4.4 – 4.5B ~0.5% ~$20M • Yield on the Client Funds Portfolio flat compared Client Extended 9.3 – 9.
Slide 9: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change 1Q FY17 1Q FY16 As Reported Constant Dollar Net earnings from continuing operations $368.7 $337.5 9% 8% Provision for income taxes 160.0 167.5 All other interest expense 15.0 3.0 All other interest income (4.
Slide 10: 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% ~+140bps All other interest expense 47.9 +40bps +5bps (
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 Diluted EPS from continuing operations (GAAP) $3.25 12% 15% - 17% Gain on sale of AMD – 1Q F16 (0.05) (1%) +1% (c) Gain on sale of building
Slide 12: ADP Guidance History
ADP Guidance History (a) 11/2/16 Forecast 7/28/16 Forecast Total ADP Revenues h 7% - 8% Reported h 7% - 9% Reported (b) Adj. EBIT Margin h ~50 bps h 25 - 50 bps (b) Adj. Effective Tax Rate Decrease to 32.7% Remain flat at 33.3% (b) (c) Adj. Diluted EPS from Cont. Ops. h 11% - 13% h 10% - 12% Emplo