Governance and ESG Focus

We Take a Disciplined Approach to Capital Allocation INVESTMENT PRIORITY 1 2 3 Reinvest in the business to drive organic revenue growth and margin improvement Invest in acquisitions to supplement ADP's existing strategy and capabilities Return cash to shareholders via dividend and shares repurchases PROGRESS + FY21 ~$1B invested in Systems Development & Programming, continue to keep strategic platforms differentiated and continue to scale Next Gen platforms + Reinvesting in growing sales force and enhancing productivity + Invested in transformation initiatives to drive hundreds of millions in run-rate savings + Maintain disciplined M&A approach and focus on transactions with high strategic value + In FY18 invested ~$615M to acquire Global Cash Card and WorkMarket; in FY19 invested ~$120M to acquire Celergo + Target dividend payout ratio 55-60% +46 years of consecutive dividend increases + Incremental dividend increase in April '18 due to tax reform; board approved another dividend increase in Nov '18, Nov '19, and Nov '20 + Long-standing share buyback program to return excess cash, averaging ~1% share count reduction per year over the past 10 years; increased pace of buybacks after $1B debt issue in May '21 Copyright 2021 ADP, Inc. 10 ADP

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