Slide 1: 3Q Fiscal 2016 ADP Earnings Call & Webcast
3Q Fiscal 2016 ADP Earnings Call & Webcast April 28, 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 • Ongoing strong demand for ADP’s solutions across the HCM portfolio • Delivered nearly 10 million Form 1095-Cs • Continued expansion of global capabilities • Client service actions beginning to have positive impact 3
Slide 4: 3Q Fiscal 2016 Financial Highlights
3Q Fiscal 2016 Financial Highlights EBIT Margin from Continuing Diluted EPS from Continuing Total Revenues (unaudited) Operations (unaudited) (a) Operations (unaudited) $1.17 $3.2B $3.0B 24.8% $1.03 14% Reported 7% Reported 24.4% +40 bps 14% Constant 9% Constant dollar (b) dollar (b) . (a) The EBIT
Slide 5: New Business Bookings and Segment Results
3Q Fiscal 2016 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • 13% representing • Revenues 5% Reported • Revenues 16% annualized recurring 7% Constant dollar • Average worksite employees paid revenues anticipated 14% to 422,000 fro
Slide 6: Fiscal 2016 Outlook
Fiscal 2016 Outlook Revenues % Margin Expansion Adj. Diluted EPS ~7% Reported Adj. EBIT Margin ~12% Reported ~9% Constant dollar ~ 50 basis points ~13% Constant dollar ES Revenue 4% - 5% Reported ES Margin ~50 basis points ~7% Constant dollar PEO Margin Up to 75 basis points
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY16 Forecast • Average Client Funds Balances ~3% from $21.8 billion in FY15, ~4% on a constant dollar Average Balance Average Yield Client Funds Interest basis Client Short ~$4.4B ~0.3% ~$15M • Yield on the Client Funds Portfolio flat compared
Slide 9: GAAP Reconciliations
3Q Fiscal 2016 GAAP Reconciliations (Continuing Operations, $ in millions) % Change 3Q FY16 3Q FY15 As Reported Constant Dollar Earnings before Income Taxes $794.8 $739.9 7% 8% Adjustments: Interest Expense 14.9 0.3 Interest Income (4.1) (2.7) Earnings before Taxes, Interest (EBIT) $805.6 $737.5 9%
Slide 10: ADP Guidance History
ADP Guidance History 4/28/16 Forecast 2/3/16 Forecast 10/28/15 Forecast 7/30/15 Forecast Total ADP ~7% Reported ~7% Reported 7% - 8% Reported Revenues 7% - 9% Reported ~9% Constant dollar ~9% Constant dollar 8% - 9% Constant dollar (a) ~50 bps Adj. EBIT Margin ~50 bps ~50 bps ~