Capital Allocation and Market Strategy
We Take a Disciplined Approach to Capital Allocation
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1
Organic reinvestment
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to drive both revenue and margins
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2
M&A
that meet our strategic goals
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3
Return cash to shareholders
balancing dividends and repurchases
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Copyright 2023 ADP, Inc.
Product: $1.2B invested in Systems Development & Programming in FY23
Go-To-Market: Sales headcount, marketing, and channel partnerships
Service: Digital transformation and Al
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Thoughtful and disciplined M&A approach; focus on transactions with high
strategic value balanced against desire for simplification within ADP
In FY18 invested ~$615M to acquire Global Cash Card and WorkMarket; in
FY19 invested $120M to acquire Celergo
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Target dividend payout ratio is 55-60%
48 years of consecutive dividend increases
Long-standing share repurchase program to return excess cash, averaging
~1% share count reduction per year over the past 10 years
$1B incremental debt issued in May 2021 to further supplement repurchases
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