Slide 1: ADP Earnings Call & Webcast Q1 Fiscal 2020
ADP Earnings Call & Webcast Q1 Fiscal 2020 October 30, 2019 Copyright © 2019 ADP, LLC
Slide 2: Forward Looking Statements; Non-GAAP Measures
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 start to year with 6% revenue growth, 60bps adjusted EBIT (a) margin expansion, and 12% adjusted diluted EPS (a) growth • ES New Business Bookings growth of 6% driven by solid performance across U.S. markets • Steady progress in Next Gen development yielding recognition by
Slide 4: Q1 Fiscal 2020 Financial Highlights
Q1 Fiscal 2020 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 6% h 8% h 12% h 6% Organic Constant Currency (a) $745M $1.34 $3.5B $687M $3.3B $1.20 2019 2020 2019 2020 2019 2020 Copyright © 2019 ADP, LLC (a) For a reconciliation of these non-GAAP financia
Slide 5: Q1 Fiscal 2020 Employer Services Segment Results
Q1 Fiscal 2020 Employer Services Segment Results (unaudited) ES Revenues ES Margin Highlights h 4% h 50bps • Overall performance in line with expectations h 5% Organic Constant Currency (a) 27.4% 27.9% • Solid U.S. New Business Bookings $2.3B $2.4B growth • FX unfavorabilityfrom stronger U.S. 2019 2
Slide 6: Q1 Fiscal 2020 PEO Services Segment Results
Q1 Fiscal 2020 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Highlights h 8% i 70bps • In-line 7% Average WSE growth consistent with expectation for acceleration over the course of fiscal $1.1B 14.7% 2020 $1.0B 14.0% • Greater-than-expected pressure of 60bps from ADP Indemnity in
Slide 7: Fiscal 2020 Outlook
Fiscal 2020 Outlook Fiscal 2019 July 31, 2019 October 30, 2019 Revised (a), unaudited Fiscal 2020 Outlook (b) Fiscal 2020 Outlook (b) Revenues $14,110M h 6% - 7% h 6% - 7% Adj. EBIT Margin (c) 22.4% h 100 - 125 bps h 100 - 125 bps Total ADP Adj. Effective Tax Rate (c) 23.8% Flat at 23.8% 23.3% Adj.
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2020 Outlook Average Balance ($) Average Yield Interest ($) Client Short ~4.9B ~1.5% 70 - 75M Client Extended ~11.6B ~2.1% 240 - 245M Client Long ~10.0B ~2.6% ~260M Total Client Funds (a) ~26.5B ~2.2% 570 - 580M Corporate Extended Interest Inc
Slide 9: Appendix: Revision of Previously Reported Financial Information
Appendix: Revision of Previously Reported Financial Information (in millions; unaudited) Q1 FY2019 Q2 FY2019 Q3 FY2019 Q4 FY2019 FY2019 As Revision As As Revision As As Revision As As Revision As As Revision As Revised Reported (a) Revised Reported (a) Revised Reported (a) Revised Reported (a) Revis