Investor Presentaiton

Scale and Operating Leverage Discrete Expense Initiatives Zero-Margin Pass-Throughs Client Funds Interest Platform Migrations Margin considerations Medium-Term Margin Considerations All ADP businesses benefit from scale (some more than others). Our shift to increased digital implementation and service delivery will further support operating leverage Continue to execute on a slate of identified expense initiatives Healthcare inflation contributes to growth in zero-margin pass-throughs and creates margin pressure within the PEO segment. And mix shift from ES segment to PEO segment creates pressure on consolidated margins Longer-Term Margin Opportunities Improvement in new purchase rates will contribute to higher margins Completion of migrations and sunset of platforms to yield further margin improvement from higher retention rates and discrete cost savings from spend related to retired platforms Copyright ©2021 ADP, Inc. 60

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