Slide 1: 1Q Fiscal 2019 ADP Earnings Call & Webcast
1Q Fiscal 2019 ADP Earnings Call & Webcast October 31, 2018 Copyright © 2018 ADP, LLC
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 • Continuing momentum into 2019 – revenue growth of 8% with adjusted diluted EPS growth of 28% in the quarter • Solid ES New Business Bookings performance of 8% in the quarter following robust Q4 2018 • Improving PEO performance – raising average Worksite Employee growth outlook fo
Slide 4: 1Q Fiscal 2019 Financial Highlights
1Q Fiscal 2019 Financial Highlights Adjusted Earnings before Interest Adjusted Diluted EPS Total Revenues (unaudited) and Taxes (EBIT) (unaudited) (a) (unaudited) (a) $1.20 $687M $3.3B $3.1B $581M h18% h28% h8% Reported $0.94 h7% Organic Constant Currency (a) 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018
Slide 5: 1Q Fiscal 2019 Segment Results
1Q Fiscal 2019 Segment Results Employer Services PEO Services • Revenues h 7% Reported • Revenues h 10% h 6% Organic Constant Currency (a) • Revenues excluding zero-margin benefits pass- • ES New Business Bookings h 8% throughs h 10% • U.S. pays per control h 2.4% • Average Worksite Employees h 9% t
Slide 6: Fiscal 2019 Outlook
Fiscal 2019 Outlook as compared to fiscal 2018 as-adjusted financials (a) $ Revenues % Margin Expansion $ Adjusted Diluted EPS (c) h 6% - 7% Consolidated (b) Adjusted EBIT Margin (c) h 100 to 125 h 15% - 17% ▪ ES Revenues h 4% - 6% (b) basis points ▪ PEO Revenues, reported h 8% - 9% ▪ ES Margin h 15
Slide 7: Appendix
Appendix Copyright © 2018 ADP, LLC
Slide 8: ADP Fiscal 2019 Guidance History
ADP Fiscal 2019 Guidance History 8/1/18 Forecast (a) 10/31/18 Forecast (a) Total ADP Revenues h 5% - 7% h 6% - 7% Adj. EBIT Margin (b) h 100 - 125 bps h 100 - 125 bps Adj. Effective Tax Rate (b) i Decline to 25.1% i Decline to 24.5% Adj. Diluted EPS (b) h 13% - 15% h 15% - 17% Employer Services (ES)
Slide 9: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy • Average Client Funds Balances h ~3% - 4% from FY19 Forecast $24.3 billion in FY18 Average Client Funds • Yield on the Client Funds Portfolio h ~30bps Balance ($) Average Yield Interest ($) compared to 1.9% in FY18 Client Short 4.5 - 4.6B ~2.0% ~9
Slide 10: PEO Quarterly Pass-through Detail
PEO Quarterly Pass-through Detail ($ in millions) Metric Q1 Q2 Q3 Q4 FY Total Benefits, Workers' Compensation, and SUI FY14 386.7 400.9 508.5 439.9 1,736.0 FY15 454.4 470.3 582.3 508.9 2,015.9 FY16 534.1 554.0 671.8 576.4 2,336.3 FY17 597.9 610.0 746.7 673.9 2,628.4 FY18 686.5 705.2 821.9 732.0 2,94
Slide 11: PEO Historical Revenue & Pass-through Detail
PEO Historical Revenue & Pass-through Detail ($ in millions, except Worksite Employee and per WSE figures) Metric FY14 FY15 FY16 FY17 FY18 FY19 Guidance (a) Average Worksite Employees (“WSEs”) 319,000 363,000 412,000 462,000 504,000 8% - 9% YoY growth 15% 14% 13% 12% 9% Reflects impact of benefits T