96 slides from Automatic Data Processing's investor day presentation, Jun 12, 2025
Slide 1: Investor Day 2025
INVESTOR DAY 2025 June 12, 2025 | New York
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: Agenda
Matt Keating 01 Welcome VP, Investor Relations Maria Black 02 Vision & Strategy President and CEO Sreeni Kutam 03 Best-in-Class Technology President, Global Product & Innovation David Foskett 04 Go-to-Market President, Global Sales Joe DeSilva 05 North America HCM Solutions EVP, North America & Chie
Slide 4: Vision & Strategy – Maria Black
02 Vision & Strategy MARIA BLACK President and CEO 4
Slide 5: 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 5 Data as of FY24
Slide 6: Supporting every client HCM need
SUPPORTING EVERY CLIENT HCM NEED HR Payroll Time Benefits HRO Talent Compliance Retirement 6
Slide 7: Supporting every client size
SUPPORTING EVERY CLIENT SIZE Small Business Mid-Market Up-Market 1-49 Employees (EEs) 50-999 EEs 1,000+ EEs 7
Slide 8: Supporting every client location
SUPPORTING EVERY CLIENT LOCATION 140+ Countries and Territories 8
Slide 9: That only comes with scale
Support for every DIFFERENTIATION client HCM need THAT ONLY Support for every client size COMES With global reach to support every WITH SCALE client location 9
Slide 10: ADP operates in a large and growing market
ADP OPERATES IN A LARGE AND GROWING $180B Mid-single MARKET digits HCM Total Expected growth rate Addressable Market: over the medium term • Payroll • HR • Benefits • Talent • HR Outsourcing • Analytics • Workforce Management Total addressable market data as of FY24. Sources: U.S. Census Bureau; U.S
Slide 11: While we are the biggest, we still have runway
WHILE WE ARE THE BIGGEST, WE STILL HAVE RUNWAY ADP Revenue $19B FY24 HR Payroll Time Benefits $180B Addressable Market HRO Talent Compliance Retirement 11
Slide 12: Human capital management is mission-critical and evolving
HUMAN CAPITAL MANAGEMENT IS MISSION-CRITICAL AND EVOLVING 12
Slide 13: Our clients face big challenges
OUR CLIENTS FACE BIG CHALLENGES Demographic Shrinking Complex Shifts Regulations HR Teams Remote Work Rising Healthcare Instant and Costs Streamlined Global Workforces 13
Slide 14: Our clients face big challenges – 75 years
OUR CLIENTS FACE BIG CHALLENGES DEPENDABILITY Demographic Shrinking Complex Shifts 75 YEARS Regulations HR Teamsof solving clientRemote HCM challenges Work Rising Healthcare Instant and Costs Streamlined Global Workforces 14
Slide 15: At ADP we believe…
that Integrity is Everything in providing Insightful Expertise in delivering Service Excellence AT ADP WE BELIEVE… in Inspiring Innovation that Each Person Counts in being Results-driven in valuing Social Responsibility 15
Slide 16: 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 17: ADP strategic priorities
ADP STRATEGIC PRIORITIES Lead with Provide Benefit our Best-in-Class Unmatched clients with HCM Technology Expertise and Global Scale Outsourcing 17
Slide 18: The ADP innovation flywheel
BUILD BUY THE ADP INNOVATION FLYWHEEL INVEST PARTNER ADP Ventures 18
Slide 19: We have been executing against our priorities
WE HAVE BEEN Enhancing product offering through organic and inorganic investments EXECUTING AGAINST OUR Expanding global reach through PRIORITIES acquisitions and partnerships Deploying AI across product, service, and sales Driving strong financial outcomes 19
Slide 20: Record high client satisfaction
And our clients recognize it… RECORD HIGH CLIENT 40% Increase in ADP SATISFACTION weighted average Net Promoter Score over the last three years1 1 Measured by Net Promoter Score from Q3FY22 to Q3FY25 20
Slide 21: Recognized as an industry leader
19 year th Our execution is why ADP is … RECOGNIZED AS AN 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
Slide 22: ADP is bullish on HCM and our future in it
ADP IS BULLISH ON HCM AND OUR FUTURE IN IT Operate Track Industry Scale Durable in a dynamic record of leading that sets financial market innovation go-to-market us apart performance 22
Slide 23: Best-in-Class Technology – Sreeni Kutam
03 Best-in-Class Technology SREENI KUTAM President, Global Product & Innovation 23
Slide 24: We have done a lot…
WE HAVE DONE A LOT… One Data One Mobile We have laid the groundwork, One UX enabling us to Marketplace innovate at a faster velocity Cloud Migration Culture of Innovation 24
Slide 25: The AI landscape is evolving fast
THE AI LANDSCAPE IS EVOLVING FAST Autonomous Agent Advanced Agent Business Simple Value Agent Understanding AI Workflow Data-driven insights language GenAI* + RPA* Early automation Predictive Analytics NLP* RPA* (early stage of AI/ML*) Time Source: Internal research 25 *RPA: Robotic Process Automati
Slide 26: The AI landscape is evolving fast – agentic AI
THE AI LANDSCAPE IS EVOLVING FAST Autonomous Agent Agentic AI Reasoning and decision-making Advanced Agent Business Simple Value Agent Data-driven insights Understanding AI Workflow Predictive Analytics language GenAI* + RPA* Early automation NLP* RPA* (early stage of AI/ML*) Time Source: Internal r
Slide 27: Agentic AI is the future
AGENTIC AI IS THE FUTURE Role-based AI agents Anomaly detection Payroll | HR | Benefits | Recruiting Execute multi-step HCM Task Automation Journeys Customized Recommendations Interpret & Assess Information Monitor & Manage Interactions 27
Slide 28: Data as a differentiator
DATA AS A DIFFERENTIATOR Training on broader, more granular data, ADP’s 1.1M+ clients and delivers smarter and more tailored millions of transactions agents ADP’s large product AI agents develop hire-to-retire expertise, portfolio usage data, sales equipping them to automatically execute data, and o
Slide 29: Strategically infusing AI across the business: products
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 1 PRODUCTS STRATEGY PROGRESS ~4M Interactions on Embed role-based AI agents Delivered ADP Assist ADP Assist1 into our products to improve across several products; 2 SERVICE client experience driving adoption • Proactive Nudges 3 SALES • Recommended best
Slide 30: Strategically infusing AI across the business: service
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 1 PRODUCTS STRATEGY PROGRESS 12K Service associates enabled with selection Deploy service and Delivered call of AI tools 1 2 SERVICE implementation agents to summarization, AI-assisted streamline service and answer generation, and AI- enhance value assis
Slide 31: Strategically infusing AI across the business: sales
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 1 PRODUCTS STRATEGY PROGRESS 40%+ Sales associates Incorporate AI tools to Deployed AI tools that enabled with AI 2 SERVICE accelerate seller guide sellers on who to tools1 productivity and contact, most valuable effectiveness solution to position and mo
Slide 32: Strategically infusing AI across the business: R&D
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 1 PRODUCTS STRATEGY PROGRESS 100% of developers Employ AI tools to enhance Technology teams enabled with 2 SERVICE efficiency and leveraging AI for AI tools1 effectiveness coding, testing, and documentation 3 SALES • Accelerate processes • Improve qualit
Slide 33: 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 34: Reimagining small business
REIMAGINING SMALL BUSINESS RUN Powered by ADP® — 900K+ clients Achievements What’s Next • Set the foundation for RUN’s cloud- • Enhance HR experience for growth native modernization journey in mature small businesses • Tightly integrated Retirement & • Scale Embedded Payroll Insurance Services • Exp
Slide 35: Innovating to remain the U.S. mid-market leader
INNOVATING TO REMAIN THE U.S. MID-MARKET LEADER Workforce Now® (WFN) — 90K+ clients Achievements What’s Next • Continued momentum with WFN Next • Extend WFN Next Gen Gen sales addressable market • Expanded partner channels to cover key • Scale ERP partner channel mid-market ERPs • Expand into Restau
Slide 36: Orchestrating a global enterprise HCM stack
ORCHESTRATING A GLOBAL ENTERPRISE HCM STACK ADP Lyric HCM + WorkForce Software Achievements What’s Next • Launched Lyric globally in • Continue to scale product with September 2024 more in-depth features • Further global expansion • Acquired WorkForce Software in October 2024 • Deepen integration wi
Slide 37: ADP Ventures accelerates innovation
ADP VENTURES ADP VENTURES ACCELERATES Driving innovation, growth, and Strong partnership with INNOVATION early access to external integration into the ADP transformative technologies ecosystem ACROSS ADP INVESTMENTS Employee Benefits Tax Credits Benefits Benefits Administration Hospitality HCM in LA
Slide 38: Investing in innovation
INVESTING IN INNOVATION Differentiating our Infusing AI Leveraging products as easy- throughout the ventures smart-human business to fuel innovation 38
Slide 39: Go-to-Market – David Foskett
04 Go-to-Market DAVID FOSKETT President, Global Sales 39
Slide 40: 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 40 All metrics as of FY24
Slide 41: We drive bookings growth through innovation and scale
Productivity WE DRIVE Enable sellers to sell more BOOKINGS GROWTH Products Capitalize on new offerings and enhancements THROUGH INNOVATION Marketing Extend our lead in digital demand generation AND SCALE Channels Drive new logos through our partner ecosystem Headcount Continue to expand our sales fo
Slide 42: Innovation continues to enable bookings growth across all buyer sizes
INNOVATION CONTINUES TO ENABLE BOOKINGS GROWTH ACROSS ALL BUYER SIZES Small Business Mid-Market Up-Market & Global 42
Slide 43: Our end-to-end support model for sellers is a key differentiator
PRODUCTIVITY OUR END-TO-END SUPPORT MODEL FOR SELLERS IS A KEY DIFFERENTIATOR RECRUIT ENABLE WITH TECH ADP Seller ONBOARD & TRAINING 43
Slide 44: The Zone is our proprietary AI sales portal
THE ZONE IS OUR PROPRIETARY AI SALES PORTAL THAT MAKES OUR SELLERS MORE EFFECTIVE 44
Slide 45: Leveraging AI to make our sellers more productive
LEVERAGING AI TO MAKE OUR SELLERS MORE PRODUCTIVE IN EVERY ASPECT OF THEIR DAY TARGETING GAINING ACCESS SELLING • Who do I contact? • Why now? • How do I answer buyer questions? • When should I reach out? • What should I say? • What is the next best action? • What solution • Will this resonate? • Ho
Slide 46: Account Action Grid
Account Action Grid ‘These are the accounts you should be selling to this week. Viewing: | Monday Morning List orn +) vowing as (Mset Value-bated aed Priority & Gold 5 Gold 5 Gold & Silver & Silver & silver & Bronze Product 1 Recommendation ‘ADP PEO. Retirement Solutions Recruitment ADP PEO. Retirem
Slide 47: Industry leading demand generation
MARKETING INDUSTRY LEADING DEMAND GENERATION POSITIONED 350K+ Well-positioned to continue to capture an FOR FUTURE outsized share of Digital leads SUCCESS generated1 annually digital demand in a world where buyers leverage AI to discover HCM solutions 1 As of FY24 47
Slide 48: Extensive ecosystem of partners
OUR SELLERS GO-TO-MARKET WITH AN EXTENSIVE ECOSYSTEM OF PARTNERS Small Business Mid-Market Up-Market Accountants Financial Advisors Private Equity & Consultants ERP / Product & Technology Banks Benefits Brokers Partners Point-of-Sale Providers Franchises System Integrators 48
Slide 49: Headcount has nearly doubled since FY10
HEADCOUNT HAS SELLER HEADCOUNT (Quota Carrying Sales Associates) NEARLY DOUBLED SINCE FY10 ~8.5K COUPLED WITH PRODUCTIVITY ~4.3K IMPROVEMENT FY10 FY24 49
Slide 50: We drive bookings growth through innovation and scale
Productivity WE DRIVE Enable sellers to sell more BOOKINGS GROWTH Products Capitalize on new offerings and enhancements THROUGH INNOVATION Marketing Extend our lead in digital demand generation AND SCALE Channels Drive new logos through our partner ecosystem Headcount Continue to expand our sales fo
Slide 51: Targeting 6-7% ES new business bookings growth
TARGETING 6-7% EMPLOYER SERVICES (ES) NEW BUSINESS BOOKINGS GROWTH IN THE MEDIUM TERM ES NEW BUSINESS BOOKINGS ($ million) 3,000 6% CAGR Target 6-7% Post Pandemic 2,500 Covid-19 Pandemic 2,000 The ACA Years 1,500 Post Great Recession 1,000 500 - 1 Medium Term 1 FY25E is based on the midpoint of guid
Slide 52: North America HCM Solutions – Joe DeSilva
05 Business Update: North America HCM Solutions JOE DESILVA Executive Vice President, North America and Chief of Operations 52
Slide 53: Diversified revenue portfolio
DIVERSIFIED REVENUE PORTFOLIO OUR $19.2B FY24 Revenue Portfolio 1 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 54: ADP is the leading small business provider
SMALL BUSINESS ADP IS THE LEADING SMALL BUSINESS PROVIDER CLIENT CHARACTERISTICS Hands-on Stretched Trust-driven 54
Slide 55: Small business: where are we now
SMALL BUSINESS #1 #1 WHERE ARE Best Software Retirement Services WE NOW… Products for Small Business 1 by G2 Provider 2 by PLANSPONSOR Record high client satisfaction Industry-leading distribution (sellers $3.4B 900K+ Revenue 3 Clients and partners) 7% Integrated Workers’ Compensation Increase in Cl
Slide 56: Small business: where are we going
SMALL BUSINESS WHERE ARE WE GOING… Extend leadership position in Payroll, HR, and Retirement Services Drive deeper penetration across HCM suite: Time & Attendance and Benefits Integrate with broader SMB technology ecosystem to address client needs and expand distribution channels 56
Slide 57: Maintain mid-market leadership
MAJOR ACCOUNTS MAINTAIN MID-MARKET LEADERSHIP CLIENT CHARACTERISTICS Growing Fragmented Discerning 57
Slide 58: Major accounts: where are we now
MAJOR ACCOUNTS Leader by Overall Market WHERE ARE NelsonHall 1 Leader in HCM by ISG Research 2 WE NOW… WFN is a leading HCM technology platform Record high client satisfaction and retention $2.9B 21% Revenue 3 Increase in Client Satisfaction 4 Customizable HCM experiences through ADP Marketplace 1 A
Slide 59: Major accounts: where are we going
MAJOR ACCOUNTS WHERE ARE WE GOING… Accelerate deployment of WFN Next Gen Broaden industry-specific solutions Expand integrations with ERPs 59
Slide 60: Accelerating growth in enterprise
NATIONAL ACCOUNTS ACCELERATING GROWTH IN ENTERPRISE CLIENT CHARACTERISTICS Complex Strategic Sophisticated 60
Slide 61: National accounts: where are we now
NATIONAL ACCOUNTS Overall Market #1 WHERE ARE Leader in HCM by ISG Research 1 HR Data Solution WE NOW… of the Year 2 Launched Lyric: our Next Gen Global HCM platform Acquired WorkForce Software to enhance capabilities in Time, $1.2B 3X Revenue 3 Improvement in Scheduling, and Labor Optimization Clie
Slide 62: National accounts: where are we going
NATIONAL ACCOUNTS WHERE ARE WE GOING… Accelerate growth by leveraging next gen capabilities of WFN and Lyric Tightly integrate WorkForce Software into product offerings Extend leadership in Global Payroll to include HR and Time 62
Slide 63: Unifying the global client experience
Service Global UNIFYING Payroll THE GLOBAL CLIENT Global Global HR EXPERIENCE Time 63
Slide 64: International HCM Solutions – Virginia Magliulo
Business Update: International HCM Solutions 06 VIRGINIA MAGLIULO Executive Vice President, Employer Services International 64
Slide 65: Our unparalleled global footprint
OUR UNPARALLELED GLOBAL FOOTPRINT 15M Employees paid internationally 65K International clients 140+ Countries and territories served 65
Slide 66: We offer single-country and multi-country solutions
WE OFFER SINGLE- COUNTRY SINGLE- MULTI- AND MULTI- COUNTRY COUNTRY COUNTRY Clients with operations in a single Clients with operations in two or SOLUTIONS country, from small more countries, from to large populations smaller cross-border firms to the largest global multi-nationals 66
Slide 67: Why we win
WHY WE WIN Global leader with Innovation is in unmatched local our DNA expertise Advanced data Unparalleled Industry-leading analytics for informed footprint security and decision-making compliance 67
Slide 68: Hear why we win from one of our clients
HEAR WHY WE WIN FROM ONE OF OUR CLIENTS 68
Slide 69: International: where are we now
INTERNATIONAL Leader WHERE ARE Multi-Country Payroll by WE NOW… Everest1 and NelsonHall2 Innovation where clients need it Enhanced intuitive user experience and $2.6B 65K Revenue 3 Clients device agnostic 76% Open marketplace integration Increase in Client capabilities for partners with APIs Satisfa
Slide 70: International: where are we going
WHERE ARE GLOBAL PAYROLL WE GOING… Innovation at scale with AI in the GLOBAL HR hands of clients and associates Beyond Payroll – forming even deeper relationship with clients GLOBAL TIME End-to-end global value proposition Driving a human experience for GLOBAL SERVICE service and technology globally
Slide 71: HRO Solutions – Brian Michaud
Business Update: Human Resources 07 Outsourcing (HRO) Solutions BRIAN MICHAUD Executive Vice President, Smart Compliance and Human Resources Outsourcing 71
Slide 72: Solutions span the HR outsourcing spectrum
SOLUTIONS SPAN THE HR OUTSOURCING SPECTRUM Professional Employer HRO Organization (PEO) Managed Services Full-service, all-in-one HR solution À la carte HR, Benefits, and/or takes on payroll, benefits, Payroll, all supported by compliance work and more Employee Support Center 72
Slide 73: How we serve our PEO clients
HOW WE SERVE Payroll & Tax OUR PEO CLIENTS Workers’ HR & Compliance Comp & Risk Your Business Expert guidance Technology Employee support Benefits 401(k) Hiring 73
Slide 74: PEO: where are we now
WHERE ARE WE A Leader in Multi-Process #1 NOW… HRO by Everest 1 PEO by Forbes 2 Largest PEO Expanded Choices $6.2B 17K Revenue 3 Clients Best-in-class HCM technology 70% Increase in Client Personalized Support Satisfaction 4 Compliance made easy 1 Leader Multi-Process Human Resources Outsourcing (20
Slide 75: Client upgrades create value to ADP as a whole
CLIENT UPGRADES CREATE ~50% New PEO clients sourced VALUE TO ADP internally AS A WHOLE 10-12x Revenue uplift range depending on client size1 1 PEO revenue uplift is net of zero margin pass-through 75
Slide 76: There is an untapped opportunity in the market
THERE IS AN Total addressable market (~30M)1 Worksite Employees UNTAPPED OPPORTUNITY IN THE MARKET ~25M Potential Opportunity ~17% of Market Addressed by ~4M Remainder of Addressed Market2 PEOs Today 1 Total addressable market estimated using the number of employers in the U.S. and applying addressa
Slide 77: …and our own client base
…AND OUR Addressable market within our base (~5M) OWN CLIENT Worksite Employees BASE ~4M Potential Opportunity1 within our base represents 100K+ clients 750K ADP TotalSource2 1 Potential opportunity estimated by total number of employers in ADP client base and applying addressability cuts based on s
Slide 78: PEO: where are we going
WHERE ARE WE GOING… Deploy leading sales tools Continue to strengthen broker channel relationships Tailor the service model and enhance operations to exceed client expectations 78
Slide 79: Financial Framework – Peter Hadley
08 Financial Framework PETER HADLEY Corporate Treasurer and Incoming Chief Financial Officer 79
Slide 80: Delivered on consolidated financial objectives since last Investor Day
WE HAVE DELIVERED ON OUR CONSOLIDATED FINANCIAL OBJECTIVES SINCE OUR LAST INVESTOR DAY Demonstrated Strong Revenue and Earnings Growth November 2021 medium-term objectives FY21-FY25E CAGR 2 7-8% Revenue Growth 8% 12% 10-12% Adj. EBIT Growth1 13% 11-13% Adj. EPS Growth1 1 For a reconciliation of Reve
Slide 81: 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 82: ADP's history of durable growth
ADP’S HISTORY OF DURABLE GROWTH Total Revenue ($B) $20.5 6.5% CAGR $10.9 ~92% Gross ES Revenue Retention in FY25 1 1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E 82 1 FY25E Revenue and Gross Revenue Retention are based on the midpoint of guidance provided on April 30, 2025. This is not a
Slide 83: Broad-based growth across our business
WE’VE DRIVEN BROAD-BASED GROWTH ACROSS OUR BUSINESS 1 Revenue ($B) $6.2B FY21 FY24 $4.8B $3.4B $2.9B $2.5B $2.6B $2.4B $2.2B $1.6B $1.1B $1.3B $1.1B $1.2B $1.0B 2 PEO Small Business Major Accounts International Complementary ES HRO National Solutions Accounts 1 See Appendix for a brief overview of t
Slide 84: Balancing growth with margin expansion
ALWAYS STRIVING TO BALANCE GROWTH WITH MARGIN EXPANSION 1 Adj. EBIT Margin (%) 26.0% 24.8% 25.5% 22.4% 23.0% 22.6% 23.5% 19.8% 20.7% ~700bps 18.9% 19.5% Margin Expansion FY15-FY25E 2 3 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E 1 For a reconciliation of Adjusted EBIT to its closest comp
Slide 85: Client funds portfolio investment strategy
CLIENT FUNDS PORTFOLIO INVESTMENT STRATEGY FY24 Balance ($B) ~$1.8B Incremental interest income generated by 7.4 extended investment strategy from FY01 – FY24 12.3 Client Short • Enabled by our strong balance sheet and high, Client Long investment-grade credit ratings • Extend and ladder maturities
Slide 86: Laddering approach – a differentiator and medium-term tailwind
LADDERING APPROACH – A DIFFERENTIATOR AND MEDIUM-TERM TAILWIND Client Funds Portfolio – Client Long and Client Extended Maturities Market Value ($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% $1,000 Positive reinvestment r
Slide 87: Consistent approach to capital allocation
ORGANIC INVESTMENTS M&A CONSISTENT APPROACH TO CAPITAL ALLOCATION SHARE REPURCHASES DIVIDENDS 87
Slide 88: Organic investments driving future growth
ORGANIC INVESTMENTS DRIVING FUTURE GROWTH BEST-IN-CLASS DISTRIBUTION TECHNOLOGY AND SERVICE • Continue to scale Lyric with more in-depth features • Expand sales force headcount and broaden global reach • Invest in partner channels and embedded payroll • WorkForce Software product integration and cli
Slide 89: M&A thoughtful and disciplined
M&A THOUGHTFUL AND DISCIPLINED Inorganic growth remains an important component in executing our strategy Key criteria for evaluating potential M&A targets: • Complementary, best-in-class technology solutions • Incremental expertise • Add to our global scale We remained disciplined on valuation and r
Slide 90: ADP's dividends and share repurchases
ADP’S DIVIDENDS AND SHARE REPURCHASES 50 Years of consecutive ($ 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 91: Our financial look ahead
OUR FINANCIAL LOOK AHEAD 91
Slide 92: Medium-term financial objectives
MEDIUM-TERM FINANCIAL OBJECTIVES 6-7% 8-10% Revenue Growth 1 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 93: ADP is bullish on HCM and our future in it
ADP IS BULLISH ON HCM AND OUR FUTURE IN IT Operate Track Industry Scale Durable in a dynamic record of leading that sets financial market innovation go-to-market us apart performance 93
Slide 94: Questions?
09 QUESTIONS? 94
Slide 95: Appendix
APPENDIX 95
Slide 96: 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