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Automatic Data Processing — Presentation / slide deck (8-K exhibit)
Automatic Data Processing (ADP) · 96 slides · Filed Jun 12, 2025
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All ADP deck slides
Slide 1 — INVESTOR
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 identified by the use of words like “outlook,” “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; the success of our new solutions; our ability to respond successfully to changes in technology, including artificial intelligence; 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 and inflation; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; availability of skilled associates; the impact of new acquisitions and divestitures; the adequacy, effectiveness and success of our business transformation initiatives; the impact of any uncertainties related to major natural disasters or catastrophic events; and supply-chain disruptions. 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” of our most recent Annual Report on Form 10-K, and in other written or oral statements made from time to time by ADP, should be considered in evaluating any forward-looking statements contained herein. This presentation contains non-GAAP financial metrics, including Adjusted EBIT margin and adjusted diluted earnings per share. For a discussion and reconciliation of historic non-GAAP financial metrics to their closest comparable GAAP financial metrics, see our earnings releases for the applicable periods presented, available at adp.investors.com or sec.gov. We have not provided a reconciliation of our revenue outlook (in organic constant currency), adjusted EBIT margin outlook or adjusted earnings per share 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 or other non-core operating items that are included in the GAAP metrics, including gains/losses on sales of businesses and assets and certain income tax adjustments. The reconciliations provided in earnings releases prepared by ADP are indicative of the reconciliation that will be prepared upon completion of the periods covered by the non-GAAP medium-term objectives. NON-GAAP MEASURES 2
Slide 3 — AGENDA
AGENDA 3 Q&A and Closing Remarks 09 Demos & Lunch 10 Welcome 01 Matt Keating VP, Investor Relations Vision & Strategy 02 Maria Black President and CEO Best-in-Class Technology 03 Sreeni Kutam President, Global Product & Innovation Go-to-Market 04 David Foskett President, Global Sales North America HCM Solutions 05 Joe DeSilva EVP, North America & Chief of Operations International HCM Solutions 06 Virginia Magliulo EVP, Employer Services International HRO Solutions 07 Brian Michaud EVP, Smart Compliance & HR Outsourcing Financial Framework 08 Peter Hadley Corporate Treasurer & Incoming CFO
Slide 4 — 02
02 MARIA BLACK President and CEO Vision & Strategy 4
Slide 5 — 42M+
80%+ of Fortune 500 are clients 42M+ employees paid in 140+ countries and territories 1.1M+ clients $19B FY24 revenue $3.1T in client funds moved in US 78M employee tax statements processed 64K ADP associates 14M+ monthly users on app Data as of FY24 5 IS THE WORLD’S LARGEST HCM ORGANIZATION
Slide 6 — SUPPORTING EVERY
Time Talent Payroll Benefits SUPPORTING EVERY CLIENT HCM NEED 6 HR HRO Retirement Compliance
Slide 7 — SUPPORTING EVERY CLIENT SIZE
SUPPORTING EVERY CLIENT SIZE Up-Market 1,000+ EEs Mid-Market 50-999 EEs Small Business 1-49 Employees (EEs) 7
Slide 8 — 140+
140+ Countries and Territories SUPPORTING EVERY CLIENT LOCATION 8
Slide 9 — THAT ONLY
Support for every client HCM need THAT ONLY COMES WITH SCALE D I F F E R E N T I A T I O N Support for every client size With global reach to support every client location 9
Slide 10 — $180B
ADP OPERATES IN A LARGE AND GROWING MARKET Mid-single digits Expected growth rate over the medium term $180B HCM Total Addressable Market: • Payroll • HR • Benefits • Talent • HR Outsourcing • Analytics • Workforce Management Total addressable market data as of FY24. Sources: U.S. Census Bureau; U.S. Bureau of Labor Statistics; IDC; NelsonHall; World Bank; Moody’s Analytics; National Association of Professional Employer Organizations; and Internal ADP research and data. 10
Slide 11 — $180B
$180B Addressable Market WHILE WE ARE THE BIGGEST, WE STILL HAVE RUNWAY 11 ADP Revenue $19B FY24 Payroll HR Time Benefits HRO Talent Retirement Compliance
Slide 12 — EVOLVING
MISSION-CRITICAL AND EVOLVING HUMAN CAPITAL MANAGEMENT IS 12
Slide 13 — OUR CLIENTS FACE BIG CHALLENGES
OUR CLIENTS FACE BIG CHALLENGES Demographic Shifts Rising Healthcare Costs Shrinking HR Teams Global Workforces Remote Work Instant and Streamlined Complex Regulations 13
Slide 14 — 75 YEARS
OUR CLIENTS FACE BIG CHALLENGES Demographic Shifts Rising Healthcare Costs Shrinking HR Teams Global Workforces Remote Work Instant and Streamlined Complex Regulations D E P E N D A B I L I T Y 75 YEARS of solving client HCM challenges 14
Slide 15 — AT ADP WE BELIEVE…
15 AT ADP WE BELIEVE… that Integrity is Everything in providing Insightful Expertise in delivering Service Excellence in Inspiring Innovation that Each Person Counts in being Results-driven in valuing Social Responsibility
Slide 16 — INNOVATION AND FIRSTS
TRACK RECORD OF INNOVATION AND FIRSTS 1973 ADP International 2000 FIRST global cloud-based HCM solution 2009 FIRST HCM Mobile App 2014 FIRST HCM Marketplace 2018 FIRST digital pay solution 2023 Launched API Central 1962 ADP leases its first IBM computers 1998 FIRST cloud- based payroll solution 2006 National Employment Report (NER) 2012 ADP Data Cloud introduced 2021 FIRST app-based conversational payroll solution 2024 Deployed ADP Assist across platforms Launched ADP Lyric HCM Note: Timeline is sequential and may not be to scale. 16
Slide 17 — ADP STRATEGIC PRIORITIES
ADP STRATEGIC PRIORITIES Lead with Best-in-Class HCM Technology Provide Unmatched Expertise and Outsourcing Benefit our clients with Global Scale 17
Slide 18 — BUY
THE ADP INNOVATION FLYWHEEL BUY BUILD PARTNER INVEST ADP Ventures 18
Slide 19 — AGAINST OUR
WE HAVE BEEN EXECUTING AGAINST OUR PRIORITIES Enhancing product offering through organic and inorganic investments Expanding global reach through acquisitions and partnerships Deploying AI across product, service, and sales Driving strong financial outcomes 19
Slide 20 — 40%
And our clients recognize it… RECORD HIGH CLIENT SATISFACTION Increase in ADP weighted average Net Promoter Score 40% over the last three years1 20 1 Measured by Net Promoter Score from Q3FY22 to Q3FY25
Slide 21 — 19th year
19th year Named by FORTUNE® Magazine as one of the “World’s Most Admired Companies” in 2025 Our execution is why ADP is … #1 HR Data Solution of the Year 2025 RECOGNIZED AS AN INDUSTRY LEADER Leader Everest Multi-Country Payroll Solutions 2024 #1 G2 Best Software Products for Small Businesses 2025 21
Slide 22 — AND OUR FUTURE IN IT
ADP IS BULLISH ON HCM AND OUR FUTURE IN IT Industry leading go-to-market Scale that sets us apart Operate in a dynamic market Durable financial performance Track record of innovation 22
Slide 23 — 03
03 SREENI KUTAM President, Global Product & Innovation Best-in-Class Technology 23
Slide 24 — We have laid the
WE HAVE DONE A LOT… One Data One UX One Mobile Culture of Innovation Cloud Migration Marketplace 24 We have laid the groundwork, enabling us to innovate at a faster velocity 24
Slide 25 — THE AI LANDSCAPE IS EVOLVING FAST
THE AI LANDSCAPE IS EVOLVING FAST Time Business Value Source: Internal research *RPA: Robotic Process Automation; AI/ML: Artificial Intelligence / Machine Learning; NLP: Natural Language Processing; GenAI: Generative AI Early automation RPA* Understanding language NLP* Data-driven insights Predictive Analytics (early stage of AI/ML*) AI Workflow GenAI* + RPA* Autonomous Agent Simple Agent Advanced Agent 25
Slide 26 — THE AI LANDSCAPE IS EVOLVING FAST
THE AI LANDSCAPE IS EVOLVING FAST Time Business Value Agentic AI Reasoning and decision-making Source: Internal research *RPA: Robotic Process Automation; AI/ML: Artificial Intelligence / Machine Learning; NLP: Natural Language Processing; GenAI: Generative AI Early automation RPA* Data-driven insights Predictive Analytics (early stage of AI/ML*) Understanding language NLP* AI Workflow GenAI* + RPA* Simple Agent Advanced Agent Autonomous Agent 26
Slide 27 — AGENTIC AI IS THE FUTURE
AGENTIC AI IS THE FUTURE Role-based AI agents Payroll | HR | Benefits | Recruiting Customized Recommendations Execute multi-step HCM Journeys Anomaly detection Task Automation Interpret & Assess Information Monitor & Manage Interactions 27
Slide 28 — DATA AS A DIFFERENTIATOR
DATA AS A DIFFERENTIATOR ADP’s 1.1M+ clients and millions of transactions Training on broader, more granular data, delivers smarter and more tailored agents AI agents develop hire-to-retire expertise, equipping them to automatically execute complex HCM journeys ADP’s large product portfolio usage data, sales data, and operations data 28
Slide 29 — ~4M
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS Embed role-based AI agents into our products to improve client experience • Proactive Nudges • Recommended best practices • Automated task completion Delivered ADP Assist across several products; driving adoption STRATEGY 29 ~4M Interactions on ADP Assist1 1 FY25 year-to-date PROGRESS PRODUCTS 1 2 SERVICE 3 SALES R&D 4
Slide 30 — 12K
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 30 1 As of Q3FY25 Deploy service and implementation agents to streamline service and enhance value • Automate simple tasks • Deliver customized guidance at scale Delivered call summarization, AI-assisted answer generation, and AI- assisted implementation configuration STRATEGY 12K Service associates enabled with selection of AI tools 1 PROGRESS PRODUCTS 1 2 SERVICE 3 SALES R&D 4
Slide 31 — 40%+
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 31 Incorporate AI tools to accelerate seller productivity and effectiveness • Prioritize opportunities & best-fit solution • Automate outreach & engagement Deployed AI tools that guide sellers on who to contact, most valuable solution to position and most effective messaging to use STRATEGY 40%+ Sales associates enabled with AI tools1 PROGRESS PRODUCTS 1 2 SERVICE 3 SALES R&D 4 1 FY25E
Slide 32 — 100%
STRATEGICALLY INFUSING AI ACROSS THE BUSINESS 32 Employ AI tools to enhance efficiency and effectiveness • Accelerate processes • Improve quality / reduce errors Technology teams leveraging AI for coding, testing, and documentation STRATEGY 100% of developers enabled with AI tools1 PROGRESS PRODUCTS 1 2 SERVICE 3 SALES R&D 4 1 As of Q3FY25
Slide 33 — SCALABLE HCM OFFERINGS WITH GLOBAL REACH
SCALABLE HCM OFFERINGS WITH GLOBAL REACH Outside of United States United States ADP iHCM ADP Lyric HCM ADP RUN ADP Workforce Now ADP Ecosystem Tax | WorkForce Software | Marketplace | Data Solutions | Outsourcing Solutions | Ventures Small Business 1 – 49 EEs Mid-Market 50 – 999 EEs Up-Market 1,000 EEs+ ADP Payroll 33
Slide 34 — REIMAGINING SMALL BUSINESS
Achievements • Set the foundation for RUN’s cloud- native modernization journey • Tightly integrated Retirement & Insurance Services • Launched Embedded Payroll offering 60% of RUN clients digitally onboarded 1 Search enhanced by ADP Assist contributed to improved client self- service • Enhance HR experience for growth in mature small businesses • Scale Embedded Payroll • Expand digital buying experiences What’s Next Expand AI efforts into agentic solutions 1 Q3FY25 REIMAGINING SMALL BUSINESS RUN Powered by ADP® — 900K+ clients 34
Slide 35 — INNOVATING TO REMAIN THE U.S. MID-MARKET LEADER
Achievements • Continued momentum with WFN Next Gen sales • Expanded partner channels to cover key mid-market ERPs • Launched Construction industry vertical Launched ADP Assist with Payroll across 100% of WFN Next Gen clients 2M HR conversations across 1.3M unique users spanning 68k clients 1 Search enhanced by ADP Assist contributed to improved client self- service • Extend WFN Next Gen addressable market • Scale ERP partner channel • Expand into Restaurant vertical What’s Next Enhance AI-driven Tax and Payroll experiences Expand AI efforts into agentic solutions 35 INNOVATING TO REMAIN THE U.S. MID-MARKET LEADER Workforce Now® (WFN) — 90K+ clients 1 FY25 year-to-date
Slide 36 — ORCHESTRATING A GLOBAL ENTERPRISE HCM STACK
Achievements • Launched Lyric globally in September 2024 • Acquired WorkForce Software in October 2024 • Global HR, Global Payroll, Global Time and Global Service AI-infused implementation 50%+ of all searches flow through GenAI-powered features1 • Continue to scale product with more in-depth features • Further global expansion • Deepen integration with WorkForce Software What’s Next Expand AI efforts into agentic solutions Enhance implementation with GenAI tooling for faster delivery ORCHESTRATING A GLOBAL ENTERPRISE HCM STACK ADP Lyric HCM + WorkForce Software 36 1 Q3FY25
Slide 37 — ADP VENTURES
ADP VENTURES ACCELERATES INNOVATION ACROSS ADP Strong partnership with integration into the ADP ecosystem ADP VENTURES INVESTMENTS Employee Benefits Leave & Absence Hospitality Tax Credits Benefits HCM in LATAM Driving innovation, growth, and early access to external transformative technologies Benefits Administration 37
Slide 38 — INVESTING IN INNOVATION
INVESTING IN INNOVATION Differentiating our products as easy- smart-human Infusing AI throughout the business Leveraging ventures to fuel innovation 38
Slide 39 — 04
04 DAVID FOSKETT President, Global Sales Go-to-Market 39
Slide 40 — $2.5B
$2.5B in worldwide new business bookings 8.5K Quota-carrying sellers 50%+ of new logos sold through partnership 140+ Countries and territories with sales coverage 200K+ New logos sold annually 40 All metrics as of FY24 OUR GO-TO-MARKET SCALE & REACH IS UNPARALLELED
Slide 41 — WE DRIVE
Products Capitalize on new offerings and enhancements Marketing Extend our lead in digital demand generation Channels Drive new logos through our partner ecosystem Headcount Continue to expand our sales force WE DRIVE BOOKINGS GROWTH THROUGH INNOVATION AND SCALE 41 Productivity Enable sellers to sell more
Slide 42 — BOOKINGS GROWTH ACROSS ALL BUYER
INNOVATION CONTINUES TO ENABLE BOOKINGS GROWTH ACROSS ALL BUYER SIZES Mid-Market Small Business Up-Market & Global 42
Slide 43 — OUR END-TO-END SUPPORT
OUR END-TO-END SUPPORT MODEL FOR SELLERS IS A KEY DIFFERENTIATOR P R O D U C T I V I T Y ADP Seller RECRUIT ONBOARD & TRAINING ENABLE WITH TECH 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 — MORE PRODUCTIVE IN EVERY ASPECT OF THEIR DAY
LEVERAGING AI TO MAKE OUR SELLERS MORE PRODUCTIVE IN EVERY ASPECT OF THEIR DAY • 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 should I position? • Will this resonate? • How can I be better? SELLING TARGETING GAINING ACCESS 45
Slide 46 — 46
46
Slide 47 — 350K+
INDUSTRY LEADING DEMAND GENERATION POSITIONED FOR FUTURE SUCCESS Well-positioned to continue to capture an outsized share of digital demand in a world where buyers leverage AI to discover HCM solutions 350K+ Digital leads generated1 annually M A R K E T I N G 47 1 As of FY24
Slide 48 — EXTENSIVE ECOSYSTEM OF PARTNERS
OUR SELLERS GO-TO-MARKET WITH AN EXTENSIVE ECOSYSTEM OF PARTNERS Small Business Accountants Banks Point-of-Sale Providers Mid-Market Financial Advisors Franchises Benefits Brokers Up-Market ERP / Product & Technology Partners Private Equity & Consultants System Integrators 48
Slide 49 — HEADCOUNT HAS
HEADCOUNT HAS NEARLY DOUBLED SINCE FY10 COUPLED WITH PRODUCTIVITY IMPROVEMENT SELLER HEADCOUNT (Quota Carrying Sales Associates) FY10 FY24 ~8.5K ~4.3K 49
Slide 50 — WE DRIVE
Products Capitalize on new offerings and enhancements Marketing Extend our lead in digital demand generation Channels Drive new logos through our partner ecosystem Headcount Continue to expand our sales force WE DRIVE BOOKINGS GROWTH THROUGH INNOVATION AND SCALE 50 Productivity Enable sellers to sell more
Slide 51 — TARGETING 6-7% EMPLOYER SERVICES (ES) NEW
- 500 1,000 1,500 2,000 2,500 3,000 TARGETING 6-7% EMPLOYER SERVICES (ES) NEW BUSINESS BOOKINGS GROWTH IN THE MEDIUM TERM 1 FY25E is based on the midpoint of guidance provided on April 30, 2025. This is not a reaffirmation of that guidance. 51 Target 6-7% Medium Term ES NEW BUSINESS BOOKINGS ($ million) Post Great Recession The ACA Years Covid-19 Pandemic Post Pandemic 6% CAGR 1
Slide 52 — 05
05 JOE DESILVA Executive Vice President, North America and Chief of Operations Business Update: North America HCM Solutions 52
Slide 53 — DIVERSIFIED REVENUE PORTFOLIO
DIVERSIFIED REVENUE PORTFOLIO PEO 32% Small Business 18% Major Accounts 15% National Accounts 6% International 14% ES HRO 7% Complementary Solutions 8% $6.2B PEO $3.4B Small Business $2.9B Major Accounts $2.6B International $1.6B Complementary Solutions $1.2B National Accounts $1.3B ES HRO 1 See Appendix for a brief overview of these different businesses. 2 PEO includes zero-margin benefits pass-through revenue. 53 FY24 Revenue Portfolio OUR $19.2B 1 2
Slide 54 — ADP IS THE LEADING
SMALL BUSINESS ADP IS THE LEADING SMALL BUSINESS PROVIDER Hands-on Stretched Trust-driven CLIENT CHARACTERISTICS 54
Slide 55 — WHERE ARE
WHERE ARE WE NOW… Record high client satisfaction Industry-leading distribution (sellers and partners) Integrated Workers’ Compensation and Insurance Services Best Software Products for Small Business by G2 #1 1 #1 Retirement Services Provider by PLANSPONSOR 2 Clients 900K+ Revenue $3.4B Increase in Client Satisfaction 7% 1 2025 Best Software Awards - RUN Powered by ADP® by G2 2 PLANSPONSOR Magazine Recordkeeping Survey 2024 3 Small Business FY24 Revenue 4 Measured by Net Promoter Score from Q3FY22 to Q3FY25 5 Remains the highest at ADP 3 4, 5 55 SMALL BUSINESS
Slide 56 — WHERE ARE
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 SMALL BUSINESS
Slide 57 — MAINTAIN
MAJOR ACCOUNTS MAINTAIN MID-MARKET LEADERSHIP Growing Fragmented Discerning CLIENT CHARACTERISTICS 57
Slide 58 — $2.9B
WHERE ARE WE NOW… WFN is a leading HCM technology platform Record high client satisfaction and retention Customizable HCM experiences through ADP Marketplace Leader by NelsonHall 1 Overall Market Leader in HCM by ISG Research 2 Revenue $2.9B Increase in Client Satisfaction 21% 1 ADP Ranked Leader for all Market Segments in NelsonHall Payroll NEAT Assessment 2024 2 Overall Market Leader for HCM Suites — ADP Workforce Now — by ISG Research in 2025 3 Major Accounts FY24 Revenue 4 Measured by Net Promoter Score from Q3FY22 to Q3FY25 3 4 58 MAJOR ACCOUNTS
Slide 59 — WHERE ARE
Expand integrations with ERPs Broaden industry-specific solutions Accelerate deployment of WFN Next Gen WHERE ARE WE GOING… 59 MAJOR ACCOUNTS
Slide 60 — ACCELERATING
NATIONAL ACCOUNTS ACCELERATING GROWTH IN ENTERPRISE Complex Strategic Sophisticated CLIENT CHARACTERISTICS 60
Slide 61 — $1.2B
WHERE ARE WE NOW… Launched Lyric: our Next Gen Global HCM platform Acquired WorkForce Software to enhance capabilities in Time, Scheduling, and Labor Optimization Leadership position in Global Payroll Overall Market Leader in HCM by ISG Research 1 #1 HR Data Solution of the Year 2 $1.2B 3X Improvement in Client Satisfaction Revenue 3 4 1 Overall Market Leader for HCM Suites — ADP Lyric HCM — by ISG Research (2025) 2 ADP Lyric HCM named “Data Solution of the Year for Human Resources” in 2025 Data Breakthrough Awards 3 National Accounts FY24 Revenue 4 Measured by Net Promoter Score from Q3FY22 to Q3FY25 61 NATIONAL ACCOUNTS
Slide 62 — WHERE ARE
Extend leadership in Global Payroll to include HR and Time Tightly integrate WorkForce Software into product offerings Accelerate growth by leveraging next gen capabilities of WFN and Lyric WHERE ARE WE GOING… 62 NATIONAL ACCOUNTS
Slide 63 — THE GLOBAL
UNIFYING THE GLOBAL CLIENT EXPERIENCE Service Global Payroll Global Time Global HR 63
Slide 64 — 06
06 VIRGINIA MAGLIULO Executive Vice President, Employer Services International Business Update: International HCM Solutions 64
Slide 65 — 15M
15M Employees paid internationally OUR UNPARALLELED GLOBAL FOOTPRINT 65K International clients 140+ Countries and territories served 65
Slide 66 — SINGLE-
WE OFFER SINGLE- COUNTRY AND MULTI- COUNTRY SOLUTIONS MULTI- COUNTRY Clients with operations in two or more countries, from smaller cross-border firms to the largest global multi-nationals SINGLE- COUNTRY Clients with operations in a single country, from small to large populations 66
Slide 67 — WHY WE WIN
WHY WE WIN Innovation is in our DNA Advanced data analytics for informed decision-making Global leader with unmatched local expertise Industry-leading security and compliance Unparalleled footprint 67
Slide 68 — HEAR WHY WE WIN FROM ONE OF OUR CLIENTS
68 HEAR WHY WE WIN FROM ONE OF OUR CLIENTS
Slide 69 — 76%
WHERE ARE WE NOW… Innovation where clients need it Enhanced intuitive user experience and device agnostic Open marketplace integration capabilities for partners with APIs Clients 65K Revenue $2.6B Increase in Client Satisfaction 76% 1 Everest Named ADP a Leader for the Multi-Country Payroll Solutions PEAK Assessment 2024 for Global, EMEA and APAC Markets 2 ADP Ranked Leader for all Market Segments in NelsonHall Payroll NEAT Assessment 2024 3 International FY24 Revenue 4 Measured by Net Promoter Score improvements from Q3FY22 to Q3FY25 3 4 Growth and expansion into countries to meet our clients where they need us Leader Multi-Country Payroll by Everest1 and NelsonHall2 69 INTERNATIONAL
Slide 70 — WHERE ARE
End-to-end global value proposition Beyond Payroll – forming even deeper relationship with clients Innovation at scale with AI in the hands of clients and associates WHERE ARE WE GOING… Driving a human experience for service and technology globally GLOBAL HR GLOBAL PAYROLL GLOBAL TIME GLOBAL SERVICE OPERATIONS 70
Slide 71 — 07
07 BRIAN MICHAUD Executive Vice President, Smart Compliance and Human Resources Outsourcing Business Update: Human Resources Outsourcing (HRO) Solutions 71
Slide 72 — SOLUTIONS
SOLUTIONS SPAN THE HR OUTSOURCING SPECTRUM À la carte HR, Benefits, and/or Payroll, all supported by Employee Support Center HRO Managed Services Full-service, all-in-one HR solution takes on payroll, benefits, compliance work and more Professional Employer Organization (PEO) 72
Slide 73 — HOW WE SERVE
HOW WE SERVE OUR PEO CLIENTS Expert guidance Technology Employee support Payroll & Tax Workers’ Comp & Risk 401(k) Hiring Benefits HR & Compliance Your Business 73
Slide 74 — 70%
Clients 17K Revenue $6.2B Increase in Client Satisfaction 70% 1 Leader Multi-Process Human Resources Outsourcing (2012-2024; 13 consecutive years) by Everest Group 2 Best PEO Services by Forbes Advisor 2024 3 PEO FY24 Revenue 4 Measured by Net Promoter Score from Q3FY22 to Q3FY25 3 4 #1 PEO by Forbes 2 WHERE ARE WE NOW… Largest PEO Expanded Choices Best-in-class HCM technology A Leader in Multi-Process HRO by Everest 1 74 Personalized Support Compliance made easy Strong client satisfaction
Slide 75 — 10-12x
New PEO clients sourced internally ~50% Revenue uplift range depending on client size1 10-12x CLIENT UPGRADES CREATE VALUE TO ADP AS A WHOLE 75 1 PEO revenue uplift is net of zero margin pass-through
Slide 76 — ~25M
THERE IS AN UNTAPPED OPPORTUNITY IN THE MARKET 76 Worksite Employees Remainder of Addressed Market2 ADP TotalSource3 Total addressable market (~30M)1 ~4M ~25M Potential Opportunity 750K ~17% of Market Addressed by PEOs Today 1 Total addressable market estimated using the number of employers in the U.S. and applying addressability cuts based on size and the estimated percentage of employers that offer health benefits by size. Data from the Kaiser Family Foundation and various reports. 2 Remainder of the Addressable Market estimated using NAPEO market sizing (<99 EEs) and internal estimates of 100+ EEs market size. 3 As of Q3FY25
Slide 77 — ~4M
…AND OUR OWN CLIENT BASE 77 Worksite Employees ADP TotalSource2 Addressable market within our base (~5M) ~4M Potential Opportunity1 within our base represents 100K+ clients 750K 1 Potential opportunity estimated by total number of employers in ADP client base and applying addressability cuts based on size and the estimated percentage of employers that offer health benefits by size. 2 As of Q3FY25
Slide 78 — WHERE ARE WE
Tailor the service model and enhance operations to exceed client expectations Deploy leading sales tools WHERE ARE WE GOING… Continue to strengthen broker channel relationships 78
Slide 79 — 08
08 PETER HADLEY Corporate Treasurer and Incoming Chief Financial Officer Financial Framework 79
Slide 80 — WE HAVE DELIVERED ON OUR CONSOLIDATED FINANCIAL
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 8% 7-8% Revenue Growth 12% 10-12% Adj. EBIT Growth1 13% 11-13% Adj. EPS Growth1 1 For a reconciliation of Revenue, Adjusted EBIT, and Adjusted EPS to their closest comparable GAAP metrics, see the applicable Q4 earnings release for the periods presented available at www.investors.adp.com 2 Based on the midpoint of guidance provided on April 30, 2025. This is not a reaffirmation of that guidance. 80
Slide 81 — WHY ADP?
WHY ADP? CONSISTENT AND GROWING REVENUE AND EARNINGS • Leader in the large and growing HCM industry • High levels of recurring revenue and strong client revenue retention • Diversified portfolio addressing all segments of the HCM market • Consistent track record of expanding margins • Client funds extended investment strategy delivers incremental interest income and minimizes rate volatility STRONG CASH FLOWS AND BALANCE SHEET • Low capital requirements • Efficient model allows ample reinvestment for organic growth • Disciplined approach to M&A • Thoughtful approach to leverage with high investment-grade credit ratings • Longstanding commitment to shareholder-friendly actions and capital return 81
Slide 82 — ~92%
ADP’S HISTORY OF DURABLE GROWTH ~92% Gross ES Revenue Retention in FY25 1 82 1 FY25E Revenue and Gross Revenue Retention are based on the midpoint of guidance provided on April 30, 2025. This is not a reaffirmation of that guidance. FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E Total Revenue ($B) $10.9 $20.5 6.5% CAGR 1
Slide 83 — WE’VE DRIVEN BROAD-BASED GROWTH
WE’VE DRIVEN BROAD-BASED GROWTH ACROSS OUR BUSINESS 83 PEO Small Business Major Accounts International Complementary Solutions ES HRO National Accounts $6.2B $4.8B $2.5B $3.4B $2.4B $2.9B $2.6B $1.6B $1.3B $1.2B $2.2B $1.1B $1.0B $1.1B FY21 FY24 Revenue ($B) 1 See Appendix for a brief overview of these different businesses. 2 PEO includes zero-margin benefits pass-through revenue. 2 1
Slide 84 — ~700bps
84 ALWAYS STRIVING TO BALANCE GROWTH WITH MARGIN EXPANSION ~700bps Margin Expansion FY15-FY25E 18.9% 19.5% 19.8% 20.7% 22.4% 23.0% 22.6% 23.5% 24.8% 25.5% 26.0% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E Adj. EBIT Margin (%) 1 For a reconciliation of Adjusted EBIT to its closest comparable GAAP metric, see the applicable Q4 earnings release for the periods presented available at sec.gov. 2 FY18 is restated for the impact of ASC 606. 3 FY25E is based on the midpoint of guidance provided on April 30, 2025. This is not a reaffirmation of that guidance. 3 2 1
Slide 85 — ~$1.8B
CLIENT FUNDS PORTFOLIO INVESTMENT STRATEGY FY24 Balance ($B) 12.3 Client Long 7.4 Client Short 15.7 Client Extended ~$1.8B Incremental interest income generated by extended investment strategy from FY01 – FY24 • Enabled by our strong balance sheet and high, investment-grade credit ratings • Extend and ladder maturities of the investment portfolio for client funds • Utilize short-term financing arrangements to satisfy client funds obligations • Safety of principal, liquidity and diversification remain our primary objectives 85
Slide 86 — ~$13B
Positive reinvestment rate differentials expected on Client Funds maturing in FY26 and FY27 86 LADDERING APPROACH – A DIFFERENTIATOR AND MEDIUM-TERM TAILWIND ~$13B Maturing in FY26 and FY27 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 FY26 FY27 FY28 FY29 FY30 FY31 FY32 >FY32 1.5% 2.6% 3.8% 4.0% 3.6% 3.2% 3.1% 4.5% Client Funds Portfolio – Client Long and Client Extended Maturities Market Value ($M) 86
Slide 87 — CAPITAL
CONSISTENT APPROACH TO CAPITAL ALLOCATION SHARE REPURCHASES M&A ORGANIC INVESTMENTS DIVIDENDS 87
Slide 88 — DRIVING FUTURE GROWTH
ORGANIC INVESTMENTS DRIVING FUTURE GROWTH BEST-IN-CLASS TECHNOLOGY • Continue to scale Lyric with more in-depth features and broaden global reach • WorkForce Software product integration and client migrations • Extending WFN Next Gen addressable market • Continue to modernize technology infrastructure Investments in AI (e.g. continued expansion of ADP Assist and agentic solutions) DISTRIBUTION AND SERVICE • Expand sales force headcount • Invest in partner channels and embedded payroll • Augment digital marketing efforts • Utilize industry-leading service tools Investments in AI (e.g. broadly deploy Sales Assist and Service Assist) 88
Slide 89 — 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 risk profiles of target companies 89
Slide 90 — ADP’S DIVIDENDS AND SHARE
ADP’S DIVIDENDS AND SHARE REPURCHASES 0.9 0.9 1.0 1.1 1.3 1.5 1.6 1.7 1.9 2.2 2.4 1.5 1.1 1.3 1.0 0.9 1.0 1.4 2.0 1.1 1.2 1.3 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Dividends Share Repurchases ($ Billions) 50 Years of consecutive dividend increases $30B Cash returned to shareholders FY15-FY25 Aa3/AA- Leading credit ratings from Moody’s (Aa3), S&P (AA-), and Fitch (AA-) 1 FY25E based on YTD and Q4 estimated capital return. May not foot due to rounding. 1 90
Slide 91 — OUR FINANCIAL LOOK AHEAD
OUR FINANCIAL LOOK AHEAD 91
Slide 92 — 8-10%
MEDIUM-TERM FINANCIAL OBJECTIVES 8-10% Adjusted EBIT growth Supported by ~50-75bps margin expansion per year 9-11% Adjusted EPS Growth Assuming 1% annual net share count reduction 92 11-13% Total Shareholder Return Assuming 2% dividend yield 1 Organic constant currency Note: These objectives assume no significant impact from M&A or changes in the macroeconomic environment, corporate tax rates, the yield curve, or ADP’s valuation multiple. 6-7% Revenue Growth ~6% Employer Services and 6-8% PEO segment growth 1
Slide 93 — AND OUR FUTURE IN IT
ADP IS BULLISH ON HCM AND OUR FUTURE IN IT Industry leading go-to-market Scale that sets us apart Operate in a dynamic market Durable financial performance Track record of innovation 93
Slide 94 — 09
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 – HCM solutions for U.S. businesses with typically 50 to 1,000 employees. $2.6B International – HCM and HRO solutions for clients based outside of the U.S. Includes the U.S. portion of certain multinational businesses using ADP global platforms. $1.6B Complementary Solutions – A variety of differentiated offerings, including tax filing services for non-payroll clients, wage garnishment, background screening, employment and income verification, certain other data solutions revenues, Wisely revenues, and tax credit services. $1.2B National Accounts –HCM solutions for U.S. businesses with typically 1,000+ employees. $1.3B ES HRO – Outsourcing solutions for U.S. businesses of all sizes. 96