#1INVESTOR DAY 2021 November 15, 2021 | Roseland, New Jersey ADP#2Our Agenda US Eastern Time 9:00 am 10:10 am Welcome Vision and Journey Product Go-To-Market Break Business by Business Panel John Ayala, President ES North America Laura Brown, President Major Account Services Joe DeSilva, President Small Business Solutions Debbie Dyson, President National Account Services Financial Outlook Break Danyal Hussain, VP Investor Relations Carlos Rodriguez, President and CEO Don Weinstein, Corp. VP Global Product and Technology Maria Black, President Worldwide Sales and Marketing Hosted by Chris D'Ambrosio, Chief Strategy Officer Virginia Magliulo, President ES International Brian Michaud, President Smart Compliance Alex Quevedo, President PEO & HRO Don McGuire, CFO 11:10 am Q&A 12:00 pm Program Concludes Copyright ©2021 ADP, Inc. Led by Carlos Rodriguez and Don McGuire 2#3Forward Looking Statements This presentation 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; the success of our new solutions; 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; changes in technology; availability of skilled technical associates; the impact of new acquisitions and divestitures; the adequacy, effectiveness and success of our business transformation initiatives; and the impact of any uncertainties related to major natural disasters or catastrophic events, including the coronavirus ("COVID-19") pandemic. 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. Note Regarding the Use of Non-GAAP Financial Metrics This presentation contains non-GAAP financial metrics. Please refer to the accompanying financial tables in the Appendix for a discussion and reconciliation of non-GAAP financial metrics to their closest comparable GAAP financial metrics. Adjusted EBIT margin, organic constant currency, and adjusted diluted earnings per share are non-GAAP financial measures. We have not provided a reconciliation of our adjusted EBIT margin outlook, organic constant currency 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 gains/losses on sales of businesses and assets and certain income tax adjustments. The accompanying reconciliation for the historical period presented is indicative of the reconciliation that will be prepared upon completion of the periods covered by the non-GAAP outlook. Copyright ©2021 ADP, Inc. 3#4Vision and Journey Carlos Rodriguez President and CEO Copyright ©2021 ADP, Inc.#5Copyright ©2021 ADP, Inc. ADP's mission is to deliver insightful technology and solutions that meet the changing needs of our clients and their workers. 5#6Employers have to navigate through a lot Equal Pay Reporting Rules Decreto n.127/2021 Kurzarbeit Illinois Pay Data Reporting CARES Act Complexi American Rescue Plan Act Fair Chance Laws Paid Sick NJ Equal Pay Act and Leave PPP Loans California Pay Data Reporting Paid Changing Family Leave Ban the Ley 10/2021 ■ Vaccination Executive Order Canada Covid-19 Emergency Response Act BOX Beschaeftigungssicherungsgesetz Scheduling Laws ERTE UK Coronavirus Job Retention Scheme Contractor v. W-2 Copyright ©2021 ADP, Inc. 6#7The entire HCM industry continues to change PRODUCT Work PURCHASE SERVICE Global | Distributed | Dynamic | Legal Pay Flexible | Early Wage Access | Card HR Employee-centric | AI/ML Tech Platform + App | Public Cloud | Consumer Grade Pricing Transparent | Consumer-like Decision Making More Research | Consultative Sales Purchase Process Live | Digital | Omni Self-Service Guided | Intuitive | Al-assisted Channels Text | Chat | Email | App Expertise Business Outcomes | "Be-the-Expert" Copyright ©2021 ADP, Inc. 7#8Copyright ©2021 ADP, Inc. Change is good. (For ADP) 8#9A refreshed look at our market reaffirms it's attractive Our Market is Big $150B Total addressable market Payroll | Workforce Management | HR | Benefits Talent | HR Outsourcing | Analytics | Payments Our Market is Growing 5-6% Expected market growth in FY22 and beyond Total addressable market data as of FY2021. Source: Census, D&B, IHS, Nelson Hall, Cerulli Associates, Internal Financial Reporting Copyright ©2021 ADP, Inc. 9#10ADP occupies an enviable position in the market We are the biggest, yet still have significant runway We have been gaining share (and plan to continue doing so) 7% ADP 6% Market $15B ADP Revenue in FY21 5% 4% 3% $150B Addressable Market 2% 1% 0% Market ADP Pre-Pandemic (FY18-19) During Pandemic (FY20-21) Market Growth ADP Growth (Organic Constant Currency¹) Sources: Census, D&B, IHS, Nelson Hall, Cerulli Associates, Internal Financial Reporting 1. Organic Constant Currency is a non-GAAP metric. Refer to Appendix for a reconciliation to its closest comparable GAAP metric Copyright ©2021 ADP, Inc. 10#11We've been on a journey to further strengthen our position Simplify • · Fewer platforms and products • Cleaner client and associate experience Elimination of manual effort Copyright ©2021 ADP, Inc. Innovate • Grow • • • Build-out of Innovation Labs Investment in talent and innovation-oriented R&D Organic investments using modern architecture Greater emphasis on client base growth Focus on driving client satisfaction Modern brand and marketing approach 11#12And we've modernized end-to-end Bigger and more innovation-oriented R&D organization 7 70% Global Innovation Labs Gross R&D spend on Innovation More modern sales and marketing approach 7,500 Global sellers, all virtually enabled Digitally-enabled service and implementation 70+ $100M Subscale service Current run rate locations shut down savings from to-date digital transformation Copyright ©2021 ADP, Inc. 12#13Client satisfaction across ADP has soared ↑11 Small Business ↑19 National Accounts ↑23 HRO/PEO ↑44 Major Accounts ↑37 International 19 Complementary Solutions ↑30 Improvement in ADP Weighted Average NPS over the past 5 years Copyright ©2021 ADP, Inc. 13#14We've strengthened our foundation in the past five years 25%+ Increase in revenue per FTE 7 Years of consecutive Top HR Product Awards at HR Tech 20%+ Decrease in contacts per client ↑40 pt Average implementation NPS 50 bps 40%+ Increase in total client count 92.2% Record level retention in ES Segment in FY21 Average annual ES margin expansion, overcoming pressure related to Covid-19 and lower client funds interest Copyright ©2021 ADP, Inc. 14#15• We've also continued to lead as a corporate citizen ✈ Environment Commitment to Net-Zero GHG Emissions by 2050 • Executive compensation linked to environmental objectives * Social • Commitment to and • recognition for driving diversity and equality efforts Key HCM solutions support DEI and financial wellness Governance • • Refreshed board with diversity in experience and background Strong scores across ESG rating agencies Copyright ©2021 ADP, Inc. 15#16Our portfolio is strong and we are excited about all of it PEO Our $15B 32% FY21 Revenue Portfolio: $2.5B Small Business $2.4B Major Accounts $1.1B National Accounts $2.2B International $1.0B ES HRO $1.1B Complementary Solutions $4.8B PEO See Appendix for a brief overview of these different businesses Copyright ©2021 ADP, Inc. Complementary Solutions 7% ES HRO 7% Small Business 16% Major Accounts 16% National Accounts International 7% 15% 16#17What you'll hear today E Product Jill Go-to-Market Business Panel G ✓ Financial We've become more agile than ever, and it shows with our continued innovation throughout our market-leading solutions We're investing in our sales and marketing organization to sustain robust bookings growth for years to come Every one of our businesses has a clear strategy to maintain or accelerate profitable growth We remain on a clear path to deliver consistent and attractive revenue growth, compounded earnings and shareholder returns Copyright ©2021 ADP, Inc. 17#18Product Don Weinstein CVP Global Product and Technology Copyright ©2021 ADP, Inc.#19ADP Ecosystem HCM Platforms Copyright ©2021 ADP, Inc. We are innovating across ADP's portfolio New User Experience roll. Small Business Run Chat DataCloud Good morning, Alex Midmarket/Upmarket Upmarket / International International Workforce Now Next Gen HCM iHCM Global Payroll wisely Next Gen Payroll Workforce Management Next Gen Tax Good Afternoon Alfred 9 867 $1,851.28 Digital Service and Implementation Marketplace Help keep your employees safe today as you plan for tomorrow Solution top picks 19#20Easy to use solutions powering small businesses across the US 750K+ Run clients ~40K Channel partners accountingTODAY TOP NEW PRODUCTS WINNER CPA Practice Advisor TECHNOLOGY INNOVATION AWARD CPA Practice Advisor TECHNOLOGY INNOVATION AWARD 2017 2017 2018 accounting TODAY TOP NEW PRODUCTS WINNER 2019 Copyright ©2021 ADP, Inc. Small Business ~1-49 employees Run • IN MARKET NOW •Modern look and feel •Personalized, powerful search Intuitive workflows, more self-service • COMING NEXT • All new HR experience Compensation benchmarks Chat Roll • Unique conversational UI • Mobile first • $2.499 39 by y 42021 • 20:00PM ESTAD Sub your End-to-end digital purchase Self-implementation / no training Time & Attendance • GL integration • Multilingual support 20#21Workforce Now, the market- leading full-suite, single database HCM platform 75K+ Workforce Now ("WFN") clients 1K+ Clients sold on WFN Next Gen NelsonHall NEAT Leader 2019 Next Generation Payroll Services VALUE INDEX LEADER OVERALL Payroll Software BIG INNOVATION 20 20 VENTANA RESEARCH Copyright ©2021 ADP, Inc. Midmarket ~50-999 employees Things To Do IN MARKET NOW Quick Links Policy Acad Dashboards VALERY EYE CALCULATOR HOURLY PRYCHECK CALCULATOR WITHHOLDING EST B Common Reports ACTIVE HOURLY EMPLOYEES WITHOUT HOURS MOTION 02:53PM Wisely Direct wisely д Worldarce New COMING NEXT Home All Myst Admin Company Things to Do Time Off Reque x Dashboards pending Wisely Expense Rep B Ong Check (3) N ADP News with ADP obl Quick Links Scent Curton • • Next Gen public cloud tech stack including Next Gen Payroll New features to enhance the experience and drive efficiency - Pay Insights, Pay Anytime and continuous calculation • Adoption of ADP's new UX design •Redesigned, intuitive workflows across Payroll, HR, Benefits and other HCM modules 21#22Upmarket ~1,000+ employees Deep functionality and platform flexibility meeting broad client needs 2.5K+ Upmarket HCM & HRO clients 75% of Fortune 500 are ADP clients VALUE INDEX LEADER OVERALL Payroll Software VENTANA RESEARCH NelsonHall NEAT Leader 2021 Gartner peerinsights customers' choice TOP HR PRODUCT Executive WINNER 2019 HR TECHNOLOGY CONFERENCE AWESOME TECHNOLOGY 2019 VENTANA RESEARCH 13th Annual Digital Innovation AWARD WINNER Workforce Now Next Gen HCM • • IN MARKET NOW Gaining momentum in 1-3K employee clients • Majority of new upmarket sales on WFN COMING NEXT •Next Gen Payroll experience for WFN upmarket clients . • Award-winning HCM built on a market-leading low- code platform Live clients in 6 countries Average new client size: 7K employees Continue scaling to larger and more complex clients • Expanding to additional countries Copyright ©2021 ADP, Inc. 22#23Global Unparalleled global reach and compliance capabilities 60K+ International clients 3K+ iHCM clients 2K+ GlobalView/ Celergo clients 140 Countries served Everest Group LEADER ¡HCM Global Payroll GlobalView | Celergo IN MARKET NOW Multi-country HCM solution • 1,500+ clients migrated from legacy •Marketplace integration Global myView - a unified payroll experience across countries and solutions •WFN-Celergo integration (100+ new deals) • • COMING NEXT Adoption of ADP's new UX design Continued client migrations and legacy platform shutdowns Next Gen HCM integration Global Insights Dashboard with DataCloud Everest Group PEAK MATRIX MULTI-COUNTRY PAYROLL PLATFORM Everest Group PEAK MATRIX LEADER MULTI-COUNTRY PAYROLL SOLUTIONS Copyright ©2021 ADP, Inc. PEAK MATRIX LEADER MULTI-COUNTRY PAYROLL SOLUTIONS Everest Group PEAK LEADER MATRIX MULTI-PROCESS HUMAN RESOURCES OUTSOURCING 23#24DataCloud Data-driven insights in the flow of work 920K+ in database Companies included Unique employees 90M+ paid last 10 years Active monthly 140K+ users of mobile insights IN MARKET NOW DEI Dashboard & Benchmarks Diversity, Equity & Inclusion: Know where you stand Cherry gaps in your snizational Org Level%2021 HR TECHNOLOGY CONFERENCE AWESOME NEW TECHNOLOGY 2016 Executive Copyright ©2021 ADP, Inc. HI TECHNOLOGY CONFERENCE AWESOME NEW TECHNOLOGY 201 TOP HR PRODUCT Executive WINNER 20 COMING NEXT Talent Market Insights Talent Finder (☑ 12. $132 Brandon Hall EXCELLENCE IN TECHNOLOGY ANOS BRONZE 2018 ~55% Active DEI client users have seen improvements in DEI measures 30M+ Active US employee profiles powering insights on availability of talent by job, geography and industry 24#25Wisely A personalized pay and financial wellness experience for workers 20+ Monthly transactions per cardholder 4.8 Stars on Apple App Store IN MARKET NOW Savings and Rewards Your Savings Envelopes Toba Enempe Savings $319.66 $275.00 Vacation 52416 $20.50 Food & Restaurants Home & Decor wayfair LOWE'S COMING NEXT Leading Financial Wellness Tools wisely Need money and pay day is a few days away? Wasty, you can access wigs you have Your Eamed Wages Curent EWA Balance $100.00 Spend with Confidence Hello, Ivan Your card is on its way! 41 Bill Pay wisely Pay Your Bills $725.25 in One Place Take control of your with cur Payalling your Wily and Pay the bill & more SLVER 2019 STEVIE WINNER AMERICAN 9th annual Best in Bizi BIG INNOVATION AWARDS 9 20 19 WINNER Copyright ©2021 ADP, Inc. HR TECHNOLOGY CONFERENCE AWESOME NEW TECHNOLOGY WINNER 2018 Game • . Savings envelopes with customized goals and automatic fund allocation Cashback Rewards • Seamless Earned Wage Access • "Cardless" Digital Wallet . Free, fully mobile Bill Pay 25#26Copyright ©2021 ADP, Inc. Digital Service and Implementation A modern client and associate experience for satisfaction, speed and efficiency Efficient onboarding Intuitive client self-service Digital support Spotlight on the owner (y) Taxes Digital tools that automate implementation processes Early results Empowering clients to view data and complete tasks easily in-product Early results Automated or interactive, real-time digital support for faster resolution Early results 36%+ Run clients self-onboarding 20%+ Reduction in service contacts per client 34%+ Service requests supported digitally with ~20% fully contained 26#27• • . Focus Areas in Product and Technology 0 Innovating on all strategic HCM platforms New, intuitive and universal UX Public cloud re-architecture Digital transformation of implementation and service Enhancing our ecosystem Proactive Talent Insights in the flow of work • Expanded Wisely product functionality . • Copyright ©2021 ADP, Inc. Delivering on Next Gen HCM and Next Gen Payroll Continued expansion of Next Gen in the US and internationally ⚫ Branding of Next Gen HCM by end of CY22 • Majority of Workforce Now unit sales on Next Gen Payroll by end of CY22 27#28Copyright ©2021 ADP, Inc. Client Perspective: Amazon "Amazon is excited about ADP's Next Gen platform, and its continuous calculation payroll approach that we expect will enable us to complete payroll processing in near-real time, providing faster visibility to pay and pay delivery for our employees." - Greg Harmer, Director, Global Payroll 28#29Go-To-Market Maria Black President Worldwide Sales & Marketing Copyright ©2021 ADP, Inc.#30All metrics fiscal 2021 Copyright ©2021 ADP, Inc. Our go-to-market scale and reach is unparalleled $1.8B+ in worldwide new business bookings 7.5K+ sellers, all virtually enabled 140 countries with sales coverage 50%+ of new logos sold through partnership 170K+ new logos sold annually 30#31We drive bookings growth through five levers 00 Products Access new markets, increase share of wallet and improve win rates Productivity Meet buyers where they want and enhance seller effectiveness with best-in-class tools Marketing Amplify marketing through simplified, personalized and assertive messaging Channels Drive market share through our industry-leading partner ecosystem Headcount Invest strategically where the opportunity is greatest Copyright ©2021 ADP, Inc. 31#32Products: We're continuously adding to our portfolio Copyright ©2021 ADP, Inc. Next Gen Roll by ADP New HCM modules Data Solutions Diversity, equity and inclusion: A business priority ADP Always Designing for People 32#33Products: Improved products for even greater resonance run POWERED BY AP Greater innovation R&D spend Copyright 2021 ADP, Inc. Payroll better Focused on a simpler portfolio Weekly Gw your one Good ning Alex Recent p JRHU 100 Calendar Apr 2021 VORA n xan B Yielding better products Win more clients 33#34Products: Leveraging ADP Marketplace for differentiation . • Apps Home Solutions Industry Why NMarketplace Find for my business Q Contact Login 800+ ADP and third-party apps across all segments and internationally Simplified experience with pre-built integrations Differentiated offering with vertical-specific partners Hot summer deals! Save 10% on HR solutions to help you r performance management performance management Filter results by ADP fo THOHONDENATS compensation management ADP Workforce New ADP TotalSour Contre Parfumance Management Contr performance reviens leaning management system ADP Verge HCM RUN Powered by ADP ADP Enterprise H ADP Workforce NoveNext Genera Company side Small Business 1-49) Midsize Business (50-9991 Large Business 1000-1 Industry Professional & Technical Servi Financial Services Manufacturing Health Care On sale for summer Save 10% on Rautions te help yourunyiur business. See the feals here. Displaying 70 search results for "performance management" Few deals Recommended Entra Management Tpbacking Comerstone Performance Management by Cornerstone Learn More - Fornerstone anation finally have the performance management techelecy that era. Canpa rack Performance Management by Emptrack Inc Memptrack Non-Profit & Social Services Government & Education Ex:rack's performance management softwares but with a visi ***** 1 Leam More - Compare Home Company Name LLC People For you Discover Reports T Time Retirement ance Apps by Marketplace ADP RESOURCES Young Vewe Company Mission PROCESS SEPORTS ANTIC TUP Our Mission Our compere dedicated to regte peteria of our greatest employees Wedge and Things We are focused on delivering pay store service and are committed to tecnut desp Company News and Announcements Company Spotlight Welcome to ADP Marketplace Discover some HR solutions to help you and your business-all in one place Company ven FOR YOU DISCOVER Making D Communitie Top apps for you HR solutions we think you love Zayn Weges On Bayton Demand for Abr. by ZayZon TeLog Mage & Experse for ADP by Triplog See the OrgChat Now Chart Presium for ADP by Orr Quantum Workplace Performance by Quantum For your Comp May Shad record sales for The county hous by HCR So Te Of Prog Recordings for fath civeter Ccky to ad more the north of May Congratulations Mary Ck sease results for the Quick Links Simplified HR for Small Business Essential to schedule & track employee time Advanced Talent by ClearCompany A Complete Core H POS Sync for RUN Powered by ADP LifeMart Discounts Lift by L by Gray Solutions LLC Automate Your Payday POS Paym Employee Discount Perform Must haves for hiring & onboarding the right people Forms 1/6 Workplace Deputy for ADP Workforce Now By Deputy Copyright ©2021 ADP, Inc. 7shifts Restaurant Scheduling 7 by in Made in Invision Employee Scheduling Time Peanut Butter Gift of College by Clear Company a </> 88 34#35Productivity: Meeting buyers where they want to be met Copyright ©2021 ADP, Inc. New buyer-centric digital storefront Self-discoverable content Omni-channel approach Digital purchase and implementation Enhanced Storefront Meet the NEW ADP.com Increased Self-Discovery D Explore the self-guided demo Get instant access to the dem Virtual Selling End-to-End Digital ADP.com roll AP by ADP Marketplace 35#36Productivity: Sales tools and technology We are adopting tools to reimagine our sellers' day-to-day Buyer-relevant Content Cadence Tool Coaching Platform Copyright ©2021 ADP, Inc. Industry Outlook Manufacturing picacy decisions and US capacity Within from 204% of me to In the last 5 years without Der the five yes the uter of workers arplayed by the Mesenger spected to increase at an D Captain the actor sart 25tain soench Every 8:00 am CADENCES TO 00 Total Actions Gonglo ACME-Demo Call w 0000 10:00 12:00 2:00 am pm pm 4:00 pm 6:00 pm 00 360 Client/Prospect View Arsenal of Advocates Calendar Tool 36#37Marketing: Simplified brand architecture and experience Clear Personalized Assertive Copyright ©2021 ADP, Inc. Payroll and HR software and services Clear framework to explain what we offer Our Platforms Looking to outsource HR and payroll? Benefits Adon Add-on Solutions Rent Ston 37#38Marketing: Data-driven engagement with prospects Personalization driven by persona, industry and experiences Clear Personalized Assertive ADP Dynamic HCM Turn change into progress Copyright ©2021 ADP, Inc. The industry's most dynamic HCM platform Explore Now Adaptable HCM for large businesses Get a custand ROI and savings estimate Calculate C ADP Sponsored Build a stronger business with an HCM solution that's ready for anything and ready to help you reimagine what's next. Dynamic HCM Turn change into progress ADP.COM Explore ADP's HCM platform Get the industry's most dynamic HCM solution Learn more 38#39Marketing: More assertive marketing More Comparative | More Direct Clear Personalized Assertive Switch Now ADP What We Offer Small Business Payroll ADP v When choosing ad that fits your need ADP compares to 0 Com Switching payroll is easy with ADP Sign up before lanuary 1st and get 3 months FREE Start quote Who We Serve Resources About ADP Support Login Ab Get a quote 877-745-1643 Start Quote Overview Para Packag An award winning full-service HR Solution Lea X ÆÐI Take Decisive Action Backed by the right data, at the right time, with the right partner. Learn More Copyright ©2021 ADP, Inc. ADP Always Designing for People' 39#40Channels: Bookings influenced by Partners Our sellers go to market with our unmatched scale of partners across all segments Small Business Midmarket Upmarket Accountants Financial Advisors III Banks 75% Copyright ©2021 ADP, Inc. Small business units sold with influence from a partner Franchises Benefits brokers Partner leverage Midmarket bookings influenced by 25% a partner ERP/Product & Technology partners Private Equity & Consultants 50% Upmarket bookings influenced by a partner 40#41Headcount: Almost doubled since FY10 with more runway ■ Continued opportunity to add headcount by segment, product and geography ■ Significant addressable opportunity in International ■ Headcount growth to cover new partnerships ■ New products and adjacencies will further expand headcount demands Copyright ©2021 ADP, Inc. Seller Headcount FY22 100% virtually enabled FY16 FY10 1K Sellers 41#42Targeting 7-8% growth medium term Employer Services New Business Bookings ($B) Post Pandemic 2.5B The Covid-19 Swoosh 2.0B The ACA Years 1.5B Post Great Recession 1.0B Targeting 7-8% Growth 0.5B 0.0B FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Medium Term 6% CAGR 1. FY22e bar based on midpoint of guidance issued during Q1 earnings report on October 27, 2021. This is not intended to be an update or reaffirmation of such guidance. Copyright ©2021 ADP, Inc. 42#43Copyright ©2021 ADP, Inc. Business-by-Business Panel Hosted by Chris D'Ambrosio Chief Strategy Officer John Ayala ES North America Laura Brown Major Account Services Joe DeSilva Small Business Solutions Debbie Dyson National Account Services Virginia Magliulo ES International Brian Michaud Smart Compliance Alex Quevedo PEO & HRO 43#44Financial Outlook Don McGuire Chief Financial Officer Copyright ©2021 ADP, Inc.#45Copyright ©2021 ADP, Inc. We have an attractive business model and a shareholder-friendly financial strategy. 45#46Why own ADP Consistent and Growing Revenue and Earnings ✓ Leader in industry with secular tailwinds and significant runway for growth 90%+ recurring revenue with 90%+ gross revenue retention key to predictable and strong earnings growth ✓ Sustainable margin improvement opportunity Robust Cash Flow ✓ Low capital requirements ✓ Efficient model allows ample reinvestment for organic growth ✓ Disciplined approach to acquisitions ✓ Longstanding commitment to shareholder friendly actions Strong Balance Sheet Highest credit rating in HCM ✓ Strong investment grade credit rating supports $2.3 trillion in client money movement and high-margin client funds strategy ✓ Thoughtful approach to leverage ✓ Significant intangible equity established through decades of earning client trust Copyright ©2021 ADP, Inc. 46#47Our cash flow priorities remain consistent 1 Organic reinvestment 2 to drive both revenue and margins M&A that meet our strategic goals 3 Return cash to shareholders with a balance of dividends and share repurchases Copyright ©2021 ADP, Inc. 47#48We have high-return options for our organic investment Product Innovative R&D 10% CAGR in Innovation R&D and product spend FY18-FY21 Continuous improvement of all key platforms and features Platform Migrations Consolidation of client footprint onto scaled platforms increases ADP agility • • Go-To-Market Grow our Sales Force Expand beyond 7,500 sellers Focus headcount growth where ROI is highest Marketing Build on our brand and targeted marketing to drive inbound Channels & Productivity . Service Digital Transformation • Invest to further improve client experience and enhance operating efficiencies Scale service and implementation Balance efficiency gains with further improvement in client satisfaction from record levels Copyright ©2021 ADP, Inc. 48#49For M&A, we will remain thoughtful but disciplined Global deal pipeline remains active, and we look for assets that can enhance our product or footprint At the same time, we remain disciplined on: Desire for continued simplification of product suite Valuation and risk profile of target companies Copyright ©2021 ADP, Inc. 49#50We remain committed to returning shareholder capital $ Billions 3.0 2.5 2.5 1.4 2.3 2.2 2.1 1.6 2.1 1.0 1.3 0.9 1.4 1.4 1.5 1.6 1.2 1.0 1.5 0.8 0.7 0.7 0.7 1.6 0.6 1.5 1.3 0.7 0.7 0.7 0.8 0.9 0.9 0.9 1.0 1.1 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Supported by spin-off of Dealer Services and issuance of $2B in debt Copyright ©2021 ADP, Inc. $24B Total cash returned since FY10 Share Repurchases ~1% annual net share count reduction historically Dividends 55-60% target payout ratio 47 Years of consecutive dividend increases 50#51Our capital structure approach is balanced Commitment to Strong Investment Grade Rating · Currently $3 billion in gross debt • Prudent use of debt within AA ratings category Ongoing enhancement reflecting growth in debt capacity Key ADP considerations for credit rating: • Access to the A1/P1/F1 commercial paper market to implement the extended investment strategy • Extended strategy has generated $2.5+ billion in incremental interest income from FY01 through FY21 • Client extended portfolio requires overnight borrowing 200+ days per year to avoid selling fixed income securities and generating realized gains or losses; $9.7 billion commercial paper program is primary mechanism Copyright ©2021 ADP, Inc. 51#52Interest income has become a smaller part of our story 38% 13% FY08 FY21 Client Funds Interest Net Impact as a % of Pretax Income¹ 1. Earnings from continuing operations before income taxes Copyright ©2021 ADP, Inc. 52#53Our investment of client funds will remain prudent Primary Objectives Safety of Principal • Prudent Investment Guidelines reviewed by ADP's Board Strict credit quality, maturity, and exposure limits • Strict credit guidelines by asset class • All securities are investment grade • Liquidity • Portfolio includes $5 billion of highly liquid U.S. Government Agency and Treasury securities Diversification Exposure limits by rating category and individual issuer Secondary Objectives ✓ Maximize book yield ✓ Minimize interest income volatility by averaging through interest rate cycles Copyright ©2021 ADP, Inc. 53#54Copyright ©2021 ADP, Inc. Our financial look ahead. 54#55Our medium term objective for ES Bookings ES New Business Bookings ($B) 2.5 2.0 6% CAGR 12-16% Guide¹ 1.6 1.5 1.5 1.5 1.5 1.4 1.3 1.1 1.2 1.2 1.2 1.0 0.9 0.9 7-8% Growth 0.5 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Medium Term Products Marketing Channels Productivity Sales Headcount Our objective is to drive 7-8% ES bookings growth annually over the medium term. 1. Guidance as of Q1 earnings report on October 27, 2021. This is not intended to be an update or reaffirmation of such guidance Copyright ©2021 ADP, Inc. 55#56Our medium term objective for ES Retention ES Retention Rate 95% 90% 85% 92.2% 91.2% 91.0% 91.3% 91.4% 91.4% 91.7% Guide¹ 90.4% 90.0% 90.0% 90.4% 90.8% 90.5% Stable ES Retention 80% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Medium Term Improving Products Increasing Satisfaction Slight Mix Pressure (SMBs) Our objective is to achieve stable retention in the 91 - 92% range as better product and higher NPS offset mix headwinds. 1. Guidance as of Q1 earnings report on October 27, 2021. This is not intended to be an update or reaffirmation of such guidance Copyright ©2021 ADP, Inc. 56#57Our medium term objective for PEO Average WSEs PEO Average WSEs (000) 1,000 10% CAGR 800 11-13% Guide¹ 600 547 571 582 504 462 412 400 364 319 203 227 255 277 High Single Digit Growth 200 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Medium Term Secular Tailwinds Investments in Go-To-Market Workforce Now Innovation Our objective is to drive high-single digit WSE growth, capitalizing on industry tailwinds and our continued investment in sales. 1. Guidance as of Q1 earnings report on October 27, 2021. This is not intended to be an update or reaffirmation of such guidance Copyright ©2021 ADP, Inc. 57#58Our medium term objective for Client Funds Interest CFI Revenue ($M) 600 562 543 540 545 493 420- 500 467 421 422 4301 3.6% 374 378 377 397 400 3.2% 2.8% 300 High Single 2.2% 2.2% 2.1% 200 1.8% 1.7% 1.7% 1.7% 1.9% 1.5% 1.4% Digit Growth 100 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Medium Term Client Funds Interest Revenue -Average Yield Pays Per Control Wage Growth Client Growth Gradually Improving Yields Our current expectation is for CFI Revenue growth to reaccelerate to high single-digits driven initially by balance growth but eventually supported by improving average yield beginning FY24. 1. Guidance as of Q1 earnings report on October 27, 2021. This is not intended to be an update or reaffirmation of such guidance Copyright ©2021 ADP, Inc. 58#59Our medium term Revenue objectives Employer Services 6% Growth 7-8% growth in ES bookings Stable ES retention 50bps contribution from price 50bps contribution from 2% PPC Modest contribution from CFI PEO 10 to 12% Growth High single digit growth in average WSES Low single digit lift from zero-margin pass- throughs and wage inflation Immaterial contribution from workers' compensation and SUI rates 7 to 8% Consolidated Revenue Growth All figures organic constant currency Copyright ©2021 ADP, Inc. 59#60Scale and Operating Leverage Discrete Expense Initiatives Zero-Margin Pass-Throughs Client Funds Interest Platform Migrations Margin considerations Medium-Term Margin Considerations All ADP businesses benefit from scale (some more than others). Our shift to increased digital implementation and service delivery will further support operating leverage Continue to execute on a slate of identified expense initiatives Healthcare inflation contributes to growth in zero-margin pass-throughs and creates margin pressure within the PEO segment. And mix shift from ES segment to PEO segment creates pressure on consolidated margins Longer-Term Margin Opportunities Improvement in new purchase rates will contribute to higher margins Completion of migrations and sunset of platforms to yield further margin improvement from higher retention rates and discrete cost savings from spend related to retired platforms Copyright ©2021 ADP, Inc. 60#61Our medium term financial objectives 7 to 8% Revenue Growth Organic Constant Currency; About 6% ES and 10 to 12% PEO Segment Growth 10 to 12% Adjusted EBIT Growth Supported by approximately 75bps annual Adj. EBIT Margin expansion 11 to 13% Adjusted EPS Growth Assuming 1% annual net share count reduction. 13 to 15% Total Shareholder Return Assuming 2% dividend yield These objectives assume no significant impact from change in corporate tax rates, change in yield curve, M&A, or change in ADP multiple Copyright ©2021 ADP, Inc. 61#62Final thoughts as we look ahead Favorable industry tailwinds and macro backdrop • Increasingly complex and dynamic world of work supports long-term structural tailwinds for HCM • Interest rate environment creates positively skewed risk reward outlook • • Ö Consistent strategy driving results with long runway More innovation concentrated on slimmer, scaled portfolio Several levers to drive sustainable bookings growth ADP businesses at various stages of simplifying, innovating, and driving growth . Positioned well for compounding growth in the years ahead Targeting robust 7-8% organic growth over the medium term Balanced approach to revenue growth and profitability driving double digit earnings growth • Targeting 13-15% medium term Total Shareholder Return Copyright ©2021 ADP, Inc. 62#63Copyright ©2021 ADP, Inc. Appendix 63#64Additional detail on today's revenue disaggregation $2.5B Small Business $2.4B Major Accounts $1.1B National Accounts $2.2B International $1.0B ES HRO $1.1B Complementary Solutions $4.8B PEO HCM solutions for U.S. businesses with typically 50 or fewer employees HCM solutions for U.S. businesses with typically 50 to 1,000 employees HCM solutions for U.S. businesses with typically 1,000+ employees HCM and HRO solutions for clients based outside the U.S. Includes the U.S. portion of certain multinational businesses using ADP global platforms Outsourcing solutions for U.S. businesses of all sizes 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 Fully outsourced HR and benefits for U.S. businesses under a co- employment model Copyright ©2021 ADP, Inc. 64#65Non-GAAP Financial Metrics In addition to our GAAP results, we use the adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods: Adjusted Financial Measure Adjusted EBIT Adjusted diluted earnings per share Organic constant currency U.S. GAAP Measure Net earnings Diluted earnings per share Revenues We believe that the exclusion of the identified items below helps us reflect the fundamentals of our underlying business model and analyze results against our expectations and against prior period, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. The nature of these exclusions is for specific items that are not fundamental to our underlying business operations. Since these adjusted financial measures and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their corresponding U.S. GAAP measures, and they may not be comparable to similarly titled measures at other companies. Copyright ©2021 ADP, Inc. 65#66Non-GAAP Financial Metrics Twelve Months Ended June 30, 2018 2019 2020 2021 Consolidated revenue growth as reported 8% 6% 3% 3% Adjustments: Impact of acquisitions (1)% (1)% -% -% Impact of foreign currency (1)% 1% 1% (1)% Consolidated revenue growth, organic constant currency 6% 7% 4% 2% Copyright ©2021 ADP, Inc. 66#67ADP