Investor Presentaiton

Overview of Non-GAAP Financial Metrics In addition to our GAAP results, we use certain adjusted results and other non-GAAP metrics set forth in the table below to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods. Furthermore, we have included net operational profit and net operational revenues, both of which are non-GAAP metrics, within this deck given Pershing Square's use of an operating margin metric in their presentation dated August 17, 2017. We do not currently use these metrics either internally, for the purposes of analyzing our results against prior periods or for forecasting future periods, or externally when providing investors relevant information. Adjusted Financial Metric Adjusted EPS U.S. GAAP Metric Diluted EPS from continuing operations Adjusted net earnings Net earnings from continuing operations Adjusted EBIT Net earnings from continuing operations Net operational profit (a) Net earnings from continuing operations Net operational revenues (a) Revenues from continuing operations Adjustments/Explanation EPS impacts of: Gains/losses on non-operational transactions such as sales of businesses and assets Certain restructuring charges See footnote (b) Pre-tax and tax impacts of: - Gains/losses on non-operational transactions such as sales of businesses and assets Certain restructuring charges See footnotes (b), (c), and (d) Provision for income taxes Gains/losses on non-operational transactions such as sales of businesses and assets Certain restructuring charges All other interest expense and income See footnotes (b) and (d) Provision for income taxes Gains/losses on non-operational transactions such as sales of businesses and assets Certain restructuring charges Impact of our client funds investment strategy Certain restructuring charges All other interest expense and income See footnotes (b) and (d) PEO pass-through costs Client fund interest revenues We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior period, and to plan for future periods by focusing on our underlying operations. We believe that these adjusted results provide relevant and useful information for investors because it allows investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. The nature of these exclusions are for specific items that are not fundamental to our underlying business operations. Since these adjusted financial metrics and other non-GAAP metrics are not measures of performance calculated in accordance with U.S. GAAP, they should not be considered in isolation from, as a substitute for, or superior to their U.S. GAAP metrics, and they may not be comparable to similarly titled metrics at other companies. Note: a. Our net operational margin is calculated as our net operational profit divided by net operational revenues. Copyright 2017 ADP, LLC. 58 ADP A more human resource.

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