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ADP Holds Investor Day To Present Strategic Vision, Transformation Initiatives And Financial Outlook

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ADP Holds Investor Day To Present Strategic Vision, Transformation Initiatives And Financial Outlook

– ADP provides insights into its next-generation solutions and shares new standards for innovation in Human Capital Management (HCM)
– ADP is the only global HCM provider that can help businesses address the entire workforce spectrum from fulltime to freelancer and hire to retire
– ADP outlines plans to further invest in, and accelerate, its transformation initiatives
– Accelerating margin targets through Fiscal 2021; anticipates adjusted EBIT margin growth of approximately 300 to 500 basis points, from 19.8% for Fiscal 2017 to 23% to 25%, by Fiscal 2021

ADP (NASDAQ: ADP) today held an investor meeting to present the company’s strategic vision, transformation initiatives and financial outlook.

ADP is Focused on Long-Term Value Creation

ADP outlined its strategic vision for creating sustainable long-term value and provided details of its operational and financial objectives for the next three years. During its presentation, ADP outlined its initiatives and intent to focus on its culture of operational excellence, performance, and innovation.

“ADP is a world-class company using its strengths to capitalize on the many opportunities we see as the way people and companies work continues to evolve rapidly,” said Carlos Rodriguez, President and Chief Executive Officer, ADP. “As we build on our positive momentum and accelerate the pace of execution, our strong financial outlook reflects the strength of ADP’s business and our flexibility to pursue a robust strategy through organic innovation and thoughtful acquisitions.”

ADP is Building on its Momentum

ADP outlined plans to leverage its progress on its transformation initiatives together with its investments in innovation and distribution to accelerate its momentum:

ADP is reshaping the HCM industry through new platforms, new product launches, and recent acquisitions, and is the only global HCM provider that can help businesses address the entire worker spectrum from fulltime to freelancer and hire to retire
ADP has launched differentiated “Next Gen” platforms that will reinforce its leadership in HCM innovation and enhance its U.S. up-market and international product suite
ADP is leveraging the scale and reach of its global distribution capabilities which continue to provide a competitive advantage
ADP’s transformation initiatives are enabling increased margin expansion and creating additional capacity for innovation and growth
ADP is Accelerating its Transformation

ADP is expanding upon its ongoing transformation by pursuing numerous broad-based initiatives with an emphasis on:

Go-To-Market Initiatives, including data-enabled market insights and streamlined support
Product & Portfolio Initiatives, including ongoing client upgrades and infrastructure optimization
Service Initiatives, including automated service enabler tools and optimized service locations
Operations & Support Initiatives, including procurement and pay-for-performance programs
ADP Increases and Extends its Financial Outlook

ADP remains committed to its objective of top quartile Total Shareholder Return (TSR) compared to the S&P 500. Building on its revised Fiscal 2018 guidance announced on May 2, 2018, reflecting the positive developments outlined during Investor Day, and extending its financial outlook to Fiscal 2021, ADP now expects to achieve:

Fiscal 2019 Adjusted EBIT Margin of 21% to 22%, which represents a full one year acceleration of the Fiscal 2020 Adjusted EBIT outlook communicated in its September 12, 2017 Investor Presentation
Fiscal 2021 Adjusted EBIT Margin of 23% to 25%
Fiscal 2019 to 2021 annualized revenue growth of 7% to 9%, Adjusted EPS growth of 16% to 19%, and TSR of 18% to 21%
To view ADP’s investor day presentation slides or listen to the webcast, visit investors.adp.com.

Safe Harbor Statement

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 the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could,” “is designed to” and other words of similar meaning, are forward-looking statements.

These statements are based on management’s expectations and assumptions and depend upon or refer to future events or conditions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements or that could contribute to such difference include: ADP’s success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or privacy breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; changes in technology; availability of skilled technical associates; and the impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These risks and uncertainties, along with the risk factors discussed under “Item 1A. – Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2017 should be considered in evaluating any forward-looking statements contained herein.

Non-GAAP Financial Information

Adjusted EBIT margin and adjusted diluted earnings per share are non-GAAP financial measures. We have not provided a reconciliation of our adjusted EBIT margin outlook or adjusted EPS outlook to their most comparable GAAP measures for such years because it would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in the GAAP metrics, including restructuring actions, gains/losses on sales of businesses and assets, and certain income tax adjustments. For a reconciliation of our Fiscal 2017 adjusted EBIT margin to its comparable GAAP financial measure, please see our earnings report for the fiscal year ended June 30, 2017, dated July 27, 2017, which also includes a discussion of why ADP believes this measure to be important. The reconciliation for the historical period presented therein is indicative of the reconciliation that will be prepared upon completion of the periods covered by the non-GAAP outlook.

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Oil prices surge as OPEC+ extends output cuts into April

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Oil prices surge as OPEC+ extends output cuts into April 1

By Sonali Paul and Koustav Samanta

SINGAPORE (Reuters) – Oil prices rose on Friday, extending gains from the previous session, after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand amid the coronavirus pandemic.

Brent crude futures for May rose 60 cents, or 0.9%, to $67.34 a barrel at 0337 GMT, and was on track for a near 2% gain in the week.

U.S. West Texas Intermediate (WTI) crude futures were up 56 cents, or 0.9%, to $64.39 per barrel.

Both contracts surged more than 4% on Thursday after the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, extended oil output curbs into April, with small exemptions to Russia and Kazakhstan.

“It just goes to show how much of a surprise the OPEC+ discipline is,” said Michael McCarthy, chief market strategist at CMC Markets.

“What makes the gain even more impressive is that it comes against a risk-off backdrop and a higher U.S. dollar,” he said.

Oil prices usually fall when the dollar rises as a higher greenback makes oil more expensive for buyers with other currencies.

Investors were surprised that Saudi Arabia had decided to maintain its voluntary cut of 1 million barrels per day through April even after oil prices rallied over the past two months.

“An array of factors coalesced to bring the parties together, but the resultant price increase will almost certainly push the parties to change their minds when they meet again on April 1, 2021,” commodity analysts at Citigroup said in a note.

“Whatever its rationale, from a pure market balancing perspective, OPEC itself has indicated that more than 2 million barrels per day (bpd) of oil will be required in the market by end-June. That need starts by mid- to late Apr’21, as refinery demand for crude starts growing before escalating through Aug’21.”

Analysts are reviewing their price forecasts to reflect the continued supply restraint by OPEC+ as well as U.S. shale producers, who are holding back spending in order to boost returns to investors.

“Oil prices could rip higher now that a tight market is likely up through the summer. WTI crude at $75 no longer seems outlandish and Brent could easily top $80 by the summer,” OANDA analyst Edward Moya said in a note.

(Reporting by Sonali Paul in Melbourne and Koustav Samanta in Singapore; Editing by Himani Sarkar and Jane Wardell)

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White House says closely tracking Microsoft’s emergency patch

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White House says closely tracking Microsoft's emergency patch 2

WASHINGTON (Reuters) – The White House is closely tracking an emergency patch Microsoft Corp has released, U.S. national security adviser Jake Sullivan said on Thursday, after an unknown hacking group recently broke into organizations using a flaw in the company’s mail server software.

“We are closely tracking Microsoft’s emergency patch for previously unknown vulnerabilities in Exchange Server software and reports of potential compromises of U.S. think tanks and defense industrial base entities,” Jake Sullivan, President Joe Biden’s national security adviser, said on Twitter.

“We encourage network owners to patch ASAP,” he said. His tweet included a link to a notice by Microsoft of the security update. (https://bit.ly/3kLPWJQ)

Microsoft’s near-ubiquitous suite of products has been under scrutiny since the hack of SolarWinds Corp, a Texas-based software firm that served as a springboard for several intrusions across government and the private sector.

In other cases, hackers took advantage of the way customers had set up their Microsoft services to compromise their targets or dive further into affected networks.

Hackers who went after SolarWinds also breached Microsoft itself, accessing and downloading source code – including elements of Exchange, the company’s email and calendaring product.

(Reporting by Eric Beech; Editing by Jacqueline Wong & Shri Navaratnam)

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EU to extend COVID-19 vaccine export controls as AstraZeneca shipment blocked – sources

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EU to extend COVID-19 vaccine export controls as AstraZeneca shipment blocked - sources 3

By Francesco Guarascio, John Chalmers and Giselda Vagnoni

BRUSSELS (Reuters) – The European Union is planning to extend its export authorisation scheme for COVID-19 vaccines to the end of June, two EU sources told Reuters on Thursday, as a shipment of AstraZeneca shots from the EU to Australia was blocked.

Extending controls could reignite tensions with countries who rely on shots made in the EU.

Under the scheme, companies must get an authorisation before exporting COVID-19 shots, and may have export requests denied if they do not respect their supply commitments with the EU.

The mechanism was set up at the end of January as a reaction to vaccine makers’ announcements of delays in the deliveries of COVID-19 vaccines to the bloc.

It is due to expire at the end of March, but the European Commission wants to extend it through June, the two officials said.

“The Commission will propose its extension into June. And that was greeted by the member states with approval, not necessarily enthusiasm, but there is a feeling that we still need that mechanism,” one senior EU diplomat said.

The second official added that at a meeting with EU diplomats on Wednesday, many countries supported the measure, including heavyweights Germany and France.

The EU Commission was not immediately available for a comment.

Italian Prime Minister Mario Draghi has also called for sanctions on companies that do not respect their contractual obligations with the EU.

When the EU’s export control mechanism was introduced in late January it triggered an outcry from importing countries who feared their vaccine supplies might be affected.

On Thursday two separate sources told Reuters the EU blocked a shipment of AstraZeneca’s vaccine destined for Australia after the drug manufacturer failed to meet its EU contract commitments.

The sources said AstraZeneca had requested permission from the Italian government to export some 250,000 doses from its Anagni plant, near Rome.

Australian lawmakers said they were unfazed. Health Minister Greg Hunt said the country had already received its first shipment of the vaccine, which would be enough until a batch being produced domestically by CSL Ltd was completed.

“This is one shipment from one country,” Hunt said in a statement.

“This shipment was not factored into our distribution plan for coming weeks,” he added.

In January, AstraZeneca cut its supplies to the EU in the first quarter to 40 million doses from 90 million foreseen in the contract, and later told EU states it would cut deliveries by another 50% in the second quarter. AstraZeneca later said it was striving to supply missing doses for the second quarter from outside Europe.

Until the decision to bloc the shipment to Australia, the EU had authorised all requests for export since the scheme’s debut on Jan. 30 to Feb. 26, which amounted to 150 requests for millions of shots to 29 countries, including Britain, the United Arab Emirates and Canada, an EU Commission spokeswoman said.

She added, however, that at least one other request was withdrawn by an exporting company. She declined to elaborate.

Export requests mostly concern the Pfizer-BioNTech vaccine which is manufactured in Belgium. AstraZeneca and Moderna shots have also been exported from the EU.

Since Jan. 30 more than 8 million vaccines were shipped from the EU to Britain, a third EU source said.

Britain has so far prevented the export of AstraZeneca vaccines to the EU, using a UK-first clause in its supply contract with the Anglo-Swedish firm, EU officials have said.

The United States also has regulations that effectively ban vaccine exports, the head of the European Commission, Ursula von der Leyen, told a news conference last week.

(Reporting by Francesco Guarascio @fraguarascio, John Chalmers and Giselda Vagnoni, with additional reporting by Byron Kaye in Sydney; Editing by Toby Chopra and Sonya Hepinstall)

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