Q3 Fiscal 2023 Earnings Supplement
We Take a Disciplined Approach to Capital Allocation
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Product: FY22 $1.2B invested in Systems Development & Programming,
1 Organic reinvestment
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to drive both revenue and margins
M&A
that meet our strategic goals
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10%+ CAGR in Innovation R&D and product spend FY18-FY22
Go-To-Market: Investing in sales headcount, marketing, distribution
channels and productivity efforts
Service: Investing in digital transformation efforts and investing to drive
further gains in client satisfaction
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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Return cash to shareholders
balancing dividends and repurchases
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Copyright 2023 ADP, Inc.
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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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