Slide 1: Fiscal 2017 ADP Earnings Call & Webcast
Fiscal 2017 ADP Earnings Call & Webcast July 27, 2017
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 2017 – Revenue growth 6%, 7% organic with strong adjusted EPS growth of 13% • Robust PEO performance with 13% revenue growth and 12% growth in average Worksite Employees • Softer new business bookings mainly due to the comparison with strong ACA-related sales in fiscal 2016
Slide 4: Fiscal 2017 Financial Highlights
Fiscal 2017 Financial Highlights Adjusted Earnings before Interest and Adjusted Diluted EPS from Total Revenues (unaudited) Taxes (EBIT) (unaudited) (a) (b) Continuing Operations (unaudited) (a) $3.70 $12.4B $2.4B $11.7B $2.3B 8% $3.26 13% 6% Reported 7% Organic (c) (a) “Adjusted” results exclude th
Slide 5: 2017 New Business Bookings and Segment Results
Fiscal 2017 New Business Bookings and Segment Results Worldwide New Employer Services PEO Services Business Bookings • 5% to $1.65 billion • Revenues h 4% Reported • Revenues h 13% representing annualized • Average worksite employees paid recurring revenues anticipated • Client revenue retention h
Slide 6: Fiscal 2018 Outlook
Fiscal 2018 Outlook Revenues % Margin Expansion Adjusted Diluted EPS (a) h 5% - 6% Reported Adjusted EBIT Margin (a) h 2% - 4% Expected to be at the lower end of 50 - 25 basis points forecasted range in 1H and higher end Expected to be below forecasted range in Expected to be below forecaste
Slide 7: Appendix
Appendix
Slide 8: Client Funds Portfolio Extended Investment Strategy
Client Funds Portfolio Extended Investment Strategy FY18 Forecast • Average Client Funds Balances h 2% – 3% Average Balance Average Yield Client Funds Interest from $23.0 billion in FY17 Client Short $4.4 – 4.5B ~1.1% ~$45M • Yield on the Client Funds Portfolio h ~20bps Client Extended 10.0 – 10.1B
Slide 9: Client Funds Portfolio at June 30, 2017 Available for Sale Securities Maturities and Book Yields
Client Funds Portfolio at June 30, 2017 Available for Sale Securities Maturities and Book Yields $6.0B 2.0% $5.0B 2.2% $4.0B 2.1% 1.4% 2.0% $3.0B $2.0B 2.3% $1.0B 2.3% 2.3% 2.2% $0.0B FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 >FY25 9
Slide 10: GAAP Reconciliations
GAAP Reconciliations In addition to our GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods: Adjusted Financial Measure U.S. GAAP Mea
Slide 11: GAAP Reconciliations
GAAP Reconciliations (Continuing Operations, $ in millions, except per share data) % Change FY17 FY16 As Reported Constant Dollar Net earnings from continuing operations $1,733.4 $1,493.4 16% 16% Provision for income taxes 797.7 741.3 All other interest expense (a) 59.3 47.9 All other interest incom
Slide 12: 2018 Outlook - GAAP Reconciliations
Fiscal 2018 Outlook - GAAP Reconciliations (Continuing Operations, $ in millions) Twelve Months Ended Fiscal 2018 June 30, 2017 Forecast Earnings from continuing operations before income taxes / margin (GAAP) $2,531.1 20.4% ~(175) – (150)bps All other interest expense (a) 59.3 +50bps - All other int
Slide 13: 2018 Outlook - GAAP Reconciliations
Fiscal 2018 Outlook - GAAP Reconciliations (Continuing Operations) Twelve Months Ended Fiscal 2018 June 30, 2017 Forecast Diluted EPS from continuing operations (GAAP) $3.85 18% (3)% - (1)% Gain on sale of businesses – 2Q F17 (a) (0.27) (7%) ~+7% Workforce Optimization Effort – 4Q F17 (b) (0.01) (0%