Investor Presentaiton
Executive Summary
ADP's Leadership
has Delivered
Results
203% Total Shareholder Return (TSR) under Carlos Rodriguez, significantly outperforming the S&P 500 and peers (1)
Compounded annual revenue growth of 7% over the last 5 years, with 580bps increase in net operational margins (2), resulting in
10% annual growth in adjusted EPS (2)
Approximately $11.3 billion of cash returned to shareholders since FY11, with 42 consecutive years of dividend increases
Executing on a
Focused
Transformation
Strategy
Led By a Strong,
Independent
Board with
Best-in-Class
Governance
Pershing Square's
Thesis & Director
Candidates are
Not Right for ADP
×
Transforming our technology through material investments in organic product innovation and technical talent; rapid adoption of
new technologies like cloud, mobile and big data; and upgrading clients to strategic platforms with anticipated introduction of
several next generation technologies in the next 12 months
Streamlining our operations footprint and enhancing service to a more efficient model that increases client satisfaction
Extending our world class distribution by optimizing routes to market and continuing to drive sales growth and productivity
Transforming our talent and culture with an infusion of key external talent and acceleration of pay for performance
ADP has a best-in-class, shareholder friendly governance profile
We are committed to board refreshment, having added four new Directors since 2014
We are committed to driving a winning corporate strategy with deep and innovative technology, service and operational
expertise
Pershing Square and its director candidates have demonstrated a lack of knowledge and understanding of ADP and its current
operations, which is a cause for concern given their lack of relevant technology experience
Pershing Square's call for accelerated operational margin improvement presents significant business risks for ADP and for our
clients
× Pershing Square owns 2.0% of ADP's common stock, not the 8.3% that the fund has represented since the start of its
campaign (3)
ADP's Board believes that Pershing Square's recently revised fee arrangements incentivize risky investment decision-making
that is not aligned with the interests of most of our other shareholders. Consequently, Pershing Square and its hand-picked
nominees cannot serve as true representatives of our shareholders' interests on the ADP Board
Notes:
1.
2.
See page 9 for additional details.
The inputs to the net operational margin calculation and adjusted EPS growth are non-GAAP metrics. Refer to the Additional Materials
for reconciliations to the closest GAAP metrics.
3.
As per CNBC segment on September 11, 2017.
Copyright 2017 ADP, LLC.
3
ADP
A more human resource."View entire presentation