Slide 1: ADP Earnings Call & Webcast Q3 Fiscal 2022
ADP Earnings Call & Webcast Q3 Fiscal 2022 April 27, 2022 Copyright © 2022 ADP, Inc.
Slide 2: Forward Looking Statements and 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: Highlights and Perspective
Highlights and Perspective • Robust Q3 underscored by revenue acceleration, reflecting strong performance across ADP • ES new business bookings accelerated towards high end of range; no meaningful impact from Omicron variant with expectation for strong close to the year • ES retention levels increas
Slide 4: Q3 Fiscal 2022 Financial Highlights
Q3 Fiscal 2022 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 10% h 12% h 17% h 11% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 50 bps $1,208M $2.21 $4,513M $4,102M $1,077M $1.89 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 (a) For a reco
Slide 5: Employer Services Segment Results
Q3 Fiscal 2022 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q3 Highlights h 8% h 120 bps • Revenue acceleration and outperformance vs expectations h 9% Organic Constant Currency (a) supported by continued strong 35.3% 36.5% bookings, retention, and pays per $2,780M $3,002M con
Slide 6: PEO Services Segment Results
Q3 Fiscal 2022 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q3 Highlights h 14% Flat • Continued strong WSE growth driven by strong demand environment and continued strong $1,514M 15.0% 15.0% hiring trends within client base $1,324M • Continued normalization in WSE mix impacting
Slide 7: Fiscal 2022 Outlook
Fiscal 2022 Outlook July 28, 2021 October 27, 2021 January 26, 2022 April 27, 2022 Fiscal 2021 Fiscal 2022 Fiscal 2022 Fiscal 2022 Fiscal 2022 (unaudited) (a) (a) (a) (a) Outlook Outlook Outlook Outlook Revenues $15,005M 6 to 7% 7 to 8% 8 to 9% 9 to10% (b) Adj. EBIT Margin 22.6% 25 to 50 bps 50 to 7
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Fiscal 2022 Outlook Average Balance ($) Average Yield Interest ($) Client Short 7.7 – 7.9B ~0.2% ~15M Client Extended 14.1 – 14.3B ~1.4% 200 – 205M Client Long 10.5 – 10.7B ~2.2% ~235M Total Client Funds (a) 32.3 – 32.9B ~1.4% 450 – 455M Corporate Ex