Weak market share in a highly competitive human capital management (HCM) software market An ongoing transition to a cloud-based delivery model and divestitures of legacy businesses are causing double digit revenue declines and significant EBITDA margin compression Consistent 20%-30% year-over-year revenue growth in cloud-based offerings, including the DayForce and Powerpay products Very high leverage, with adjusted debt-to-EBITDA likely to remain over 9.5x for the next 24 months Weak free cash flow due to declining revenues and growing capital expenditures necessary to support the cloud transition Adequate liquidity, despite limited access to the revolving credit facility The stable outlook on Ceridian HCM Holding Inc. reflects our expectation that Ceridian will continue to grow revenues for its cloud-based HCM products over 20%
