Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — ADP — Investor Presentation (June 2025)

31 slides from Automatic Data Processing's investor presentation, June 2025

Slide 2: Disclaimers
DISCLAIMERS 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 i
Slide 3: The world's largest HCM organization
$19B FY24 revenue 1.1M+clients 78M employee tax 42M+ employees paid in statements processed 140+ countries and territories IS THE WORLD’S LARGEST HCM ORGANIZATION 80%+ $3.1T 64K 14M+ of Fortune 500 in client funds ADP associates monthly users are clients moved in US on app Copyright © 2025 ADP, Inc.
Slide 7: Track record of innovation and firsts
TRACK RECORD OF INNOVATION AND FIRSTS 1973 2000 2009 2014 2018 2023 ADP FIRST global FIRST HCM FIRST HCM FIRST digital pay Launched API International cloud-based Mobile App Marketplace solution Central HCM solution 1962 1998 2006 2012 2021 2024 ADP leases its FIRST cloud- National ADP Data Cloud FIR
Slide 8: Scalable HCM offerings with global reach
SCALABLE HCM OFFERINGS WITH GLOBAL REACH ADP iHCM ADP Lyric HCM Outside of United States ADP RUN ADP Workforce Now United States ADP Payroll ADP Ecosystem Tax | WorkForce Software | Marketplace | Data Solutions | Outsourcing Solutions | Ventures Small Business Mid-Market Up-Market 1 – 49 EEs 50 – 99
Slide 9: Our go-to-market scale and reach is unparalleled
$2.5Bin worldwide new 200K+ New logos sold business bookings annually OUR GO-TO-MARKET SCALE & REACH IS UNPARALLELED 8.5K 140+ 50%+ Quota-carrying Countries and territories of new logos sold sellers with sales coverage through partnership Copyright © 2025 ADP, Inc. 9 All metrics as of FY24
Slide 10: Diversified revenue portfolio
DIVERSIFIED REVENUE PORTFOLIO OUR $19.2B 1 FY24 Revenue Portfolio 2 $6.2B PEO PEO 32% $3.4B Small Business Small Business 18% $2.9B Major Accounts Major Accounts 15% $2.6B International International 14% $1.6B Complementary Solutions Complementary Solutions 8% $1.3B ES HRO ES HRO 7% $1.2B National A
Slide 11: ADP strategic priorities
ADP STRATEGIC PRIORITIES Lead with Provide Benefit our Best-in-Class Unmatched clients with HCM Technology Expertise and Global Scale Outsourcing Copyright © 2025 ADP, Inc. 11
Slide 12: Why ADP?
WHY ADP? CONSISTENT AND GROWING STRONG CASH FLOWS AND REVENUE AND EARNINGS BALANCE SHEET • Leader in the large and growing HCM industry • Low capital requirements • High levels of recurring revenue and strong • Efficient model allows ample reinvestment for client revenue retention organic growth • D
Slide 13: ADP's history of durable growth
ADP’S HISTORY OF DURABLE GROWTH Total Revenue ($B) $20.5 6.5% CAGR $10.9 ~92% Gross ES Revenue Retention in FY25 1 1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E Copyright © 2025 ADP, Inc. 13 1 FY25E Revenue and Gross Revenue Retention are based on the midpoint of guidance provided on Apr
Slide 14: Client funds portfolio investment strategy
CLIENT FUNDS PORTFOLIO INVESTMENT STRATEGY FY24 Balance ($B) ~$1.8B Incremental interest income generated by 7.4 extended investment strategy from FY01 – FY24 12.3 Client Short • Enabled by our strong balance sheet and high, Client Long investment-grade credit ratings • Extend and ladder maturities
Slide 15: Laddering approach - a differentiator and medium-term tailwind
LADDERING APPROACH – A DIFFERENTIATOR AND MEDIUM-TERM TAILWIND Client Funds Portfolio – Client Long and Client Extended Maturities Market Value ($M) $8,000 $7,000 1.5% ~$13B $6,000 2.6% Maturing in 4.0% $5,000 3.8% FY26 and FY27 $4,000 3.6% $3,000 3.2% 4.5% $2,000 3.1% $1,000 Positive reinvestment r
Slide 16: Organic investments driving future growth
ORGANIC INVESTMENTS DRIVING FUTURE GROWTH BEST-IN-CLASS DISTRIBUTION TECHNOLOGY AND SERVICE • Continue to scale Lyric with more in-depth features • Expand sales force headcount and broaden global reach • Invest in partner channels and embedded payroll • WorkForce Software product integration and cli
Slide 17: ADP's dividends and share repurchases
ADP’S DIVIDENDS AND SHARE REPURCHASES 50 Years of consecutive ($ Billions) dividend increases 2.0 1.1 1.2 1.3 $30B 1.4 Cash returned to 1.0 shareholders FY15-FY25 1.5 1.3 0.9 1.0 1.1 2.2 2.4 1.9 Aa3/AA- 1.5 1.6 1.7 1.1 1.3 0.9 0.9 1.0 1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Leading
Slide 18: Recognized as an industry leader
RECOGNIZED AS AN 19 year th INDUSTRY LEADER Named by FORTUNE® Magazine as one of the “World’s Most Admired Companies” in 2025 #1 Leader #1 HR Data Solution of the Everest Multi-Country G2 Best Software Products Year 2025 Payroll Solutions 2024 for Small Businesses 2025 Copyright © 2025 ADP, Inc. 18
Slide 19: Medium-term financial objectives
MEDIUM-TERM FINANCIAL OBJECTIVES 6-7% 8-10% Revenue Growth1 Adjusted EBIT growth ~6% Employer Services and Supported by ~50-75bps 6-8% PEO segment growth margin expansion per year 9-11% 11-13% Adjusted EPS Growth Total Shareholder Return Assuming 1% annual net Assuming 2% dividend yield share count
Slide 21: FY24 revenue disaggregation detail
FY24 REVENUE DISAGGREGATION DETAIL $6.2B PEO – Fully outsourced HR and benefits for U.S. businesses under a co-employment model. Includes Zero Margin Benefit Pass-Through revenue. $3.4B Small Business – HCM solutions for U.S. businesses with typically 50 or fewer employees. $2.9B Major Accounts – HC
Slide 22: Corporate governance detail
CORPORATE GOVERNANCE DETAIL 22
Slide 23: Governance: committed to shareholder engagement
GOVERNANCE: COMMITTED TO SHAREHOLDER ENGAGEMENT We are committed to proactively engaging with shareholders; our Board is highly attuned to shareholder feedback, including governance & compensation best practices Monitoring & Assessment Outreach & Engagement • Board and management review: • ADP regul
Slide 24: Governance: leading with best practices
GOVERNANCE: LEADING WITH BEST PRACTICES ADP is committed to shareholder-friendly corporate governance practices that help to drive long-term value creation ✓ Proxy access right at 3% / 3-year ownership threshold ✓ Annually elected Board; directors may be removed without (adopted August 2016) cause ✓
Slide 25: Governance: responsive to shareholder feedback
GOVERNANCE: RESPONSIVE TO SHAREHOLDER FEEDBACK Topics of Discussion ADP Actions Taken ✓ Risk oversight changes to Board and Committee responsibilities, including formalization of • Board composition, self-assessment, and refreshment Corporate Development and Technology Committee (previously an advis
Slide 26: Governance: best-in-class board with balanced skill set
GOVERNANCE: BEST-IN-CLASS BOARD WITH BALANCED SKILL SET Deliberate Board Composition Skill Set Aligns and Evolves With Corporate Strategy ▪ Commitment to both continuity and fresh perspectives – 4 of our 10 independent Directors have a tenure of 5 years or less1 Director Skill Set2 – Average indepen
Slide 27: Compensation: rigorous approach
COMPENSATION: RIGOROUS APPROACH Five Guiding Principles Compensation Governance Ensures Alignment with Principles Emphasize variable, performance-based compensation 1 Robust Clawback Policy exceeding Nasdaq listing requirements to ensure that pay and performance are closely aligned ✓ applicable to c
Slide 28: Compensation: pay closely aligned to performance
COMPENSATION: PAY CLOSELY ALIGNED TO PERFORMANCE Balanced, Performance-Based Compensation Policy Transformation, Client Satisfaction and ESG Objectives • Designed to incentivize sustainable value creation • Transformation, Client Satisfaction and ESG objectives represent 20%, 10% and 10%, respective
Slide 29: Enterprise risk management
ENTERPRISE RISK MANAGEMENT BOARD AND KEY COMMITTEES MAINTAIN DISCIPLINED RISK ASSESSMENT PROCESS TO EFFECTIVELY PURSUE STRATEGIC GOALS COMPENSATION AND MANAGEMENT DEVELOPMENT COMMITTEE • 2 Component of Operational (Talent Management) • Acquisition Integration • Corporate Compliance • Competitive AUD
Slide 30: Committed to sustainable practices
COMMITTED TO SUSTAINABLE PRACTICES Environment Social • Commitment to Net-Zero GHG • Commitment to an inclusive Emissions by 2050 workplace • Reducing Scope 1 & 2 GHG emissions • Always Designing for 25.2% by 2025 and 50% by 2030 People – all people • Executive compensation linked to • Key HCM solut
Slide 31: Corporate social responsibility report
CORPORATE SOCIAL RESPONSIBILITY REPORT MOST RECENT CSR REPORT ISSUED MAY 2024 ✓ Commitment to Strong Governance, Ethics, and Compliance ✓ Associate Inclusion, Engagement and Wellness ✓ Client Betterment Through Innovation ✓ Community Engagement and Volunteer Involvement ✓ Environmental Sustainabilit

ADP — Investor Presentation (June 2025) on 6ix

Automatic Data Processing — ADP — Investor Presentation (June 2025)

Slide 1: Investor Overview

Slide 2: Disclaimers

Slide 3: The world's largest HCM organization

Slide 4: Supporting every client HCM need

Slide 5: Supporting every client size

Slide 6: Supporting every client location

Slide 7: Track record of innovation and firsts

Slide 8: Scalable HCM offerings with global reach

Slide 9: Our go-to-market scale and reach is unparalleled

Slide 10: Diversified revenue portfolio

Slide 11: ADP strategic priorities

Slide 12: Why ADP?

Slide 13: ADP's history of durable growth

Slide 14: Client funds portfolio investment strategy

Slide 15: Laddering approach - a differentiator and medium-term tailwind

Slide 16: Organic investments driving future growth

Slide 17: ADP's dividends and share repurchases

Slide 18: Recognized as an industry leader

Slide 19: Medium-term financial objectives

Slide 20: Appendix

Slide 21: FY24 revenue disaggregation detail

Slide 22: Corporate governance detail

Slide 23: Governance: committed to shareholder engagement

Slide 24: Governance: leading with best practices

Slide 25: Governance: responsive to shareholder feedback

Slide 26: Governance: best-in-class board with balanced skill set

Slide 27: Compensation: rigorous approach

Slide 28: Compensation: pay closely aligned to performance

Slide 29: Enterprise risk management

Slide 30: Committed to sustainable practices

Slide 31: Corporate social responsibility report