Investor Presentaiton
ADP Has Delivered Superior Total Shareholder Returns Against a Broad
Range of Comparable Company Groups Over Every Relevant Time Period
ADP Does Not Have a Direct Competitor Set but Benchmarks Well Against a Range of
Technology, Software and Services Companies
TSR Rationale
ADP is the only large-cap, global HCM provider that is
singularly focused on the full suite of HCM products and solutions
We are 2.3x larger than our closest pure-play HCM
competitor (1)
None of our HCM competitors provide ADP's full suite of
HCM services
Our competition is fragmented across the HCM landscape and
tends to be in an earlier stage of development
We have leading market positions, solid top and bottom line
growth, strong margins and free cash flow conversion and
have returned approximately $11.3 billion in cash to
shareholders since FY11
Our operations and financial attributes are more similar to a
broad range of leading technology, software & services
companies
Given these attributes, and in order to benchmark ourselves in
the broadest and most rigorous way, we have identified 4 peer
sets against which to evaluate ADP's Total Shareholder Returns
Comparisons to each of the peer sets indicate that our
shareholders are well-served to invest their money with ADP,
rather than investing in these other universes of companies
(over any relevant time period)
S&P 500 Index
Broader Services
Landscape Across
2 Technology, Software,
IT, Processing &
Payments
3
HCM-Related
Players
Gartner "Magic
Quadrant" for
Cloud HCM
Peer Sets
Like many S&P 500 constituents, ADP is a
mature, large-cap company with a long
track-record of consistent growth,
profitability, strong cash flow and significant
returns of cash
Companies at the intersection of technology
& services based on the coverage of ADP's
sellside research community
Filtered for ADP-like characteristics
such as scale, capital intensity, free
cash flow generation and dividends
Broadest set of firms that either solely or
partially compete in the HCM landscape
ranging from early stage companies with
narrow product sets to large cap software
companies
Publically traded companies in the Cloud
HCM sector servicing mid-market and large
enterprises, as defined by Gartner
Research
Note:
1.
Based on ADP and Paychex market capitalization as of 9/5/2017.
Copyright 2017 ADP, LLC.
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ADP
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