Investor Presentaiton
1 We Have Increased Overall R&D Spend While Significantly
Shifting Our Investment Towards Innovation
R&D Highly Focused on Innovation
ADP Global R&D Spend ($M) (1)(2)
Key Technology Initiatives Going Live in FY18
Maintenance
Innovation
8%
CAGR
859
(3)
538
388
410
450
20%
CAGR
150
FY11
28%
"Low Code" Application
Development Platform
■ Next Gen platform using latest technology
and tools
Enables internal & external global
development teams to build country,
segment & client-specific applications
Leverages public cloud infrastructure
Next Gen Transaction
Processing Engines
Next Gen payroll and tax filing engines
designed for multi-country localization
Always-on calculations enable real-time,
continuous pays
Fully API-enabled enables easier
integration with other systems
■
FY17
52%
Innovation as a % of Total R&D Spend
☐
Patent-pending, reusable, policy-based
design architecture
Notes:
1.
2.
3.
✓
Faster to market
More efficient R&D spend
Greater capture of global
opportunities
Lower hosting & infrastructure costs
Enhanced global data privacy
Increased differentiation in payroll &
payments
Pioneer of employee pay financial
technology transformation
-
More employee pay options
Real-time payments
Pay for flexible work
Expand multi-country payroll
capabilities to smaller employers
Increase client satisfaction with
more visibility and self-service
More efficient client service &
implementation
Represents systems development and programming costs, which includes expenses for activities such as client upgrades to our new strategic
platforms, the development of new products and maintenance of our existing technologies, including purchases of new software and software
licenses.
Excluding capitalized software and internal allocation charges, the R&D Innovation vs. Maintenance spend ratio was 62% vs. 38% for FY17.
For FY11, approximately $128M of S&P spend removed from calculation as compared to historically disclosed data due to business dispositions
(primarily Dealer Services).
Copyright 2017 ADP, LLC.
20
ADP
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