FORWARD-LOOKING STATEMENTS

This document and other written or oral statements made from time to time by Automatic Data Processing, Inc., its subsidiaries and variable interest entity ("ADP" or the "Company") may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could" and other words of similar meaning, are forward-looking statements. These statements are based on management's expectations and assumptions and depend upon or refer to future events or conditions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements or that could contribute to such difference include: ADP's success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; the success of our new solutions; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; changes in technology; availability of skilled technical associates; the impact of new acquisitions and divestitures; the adequacy, effectiveness and success of our business transformation initiatives; and the impact of any uncertainties related to major natural disasters or catastrophic events, including the coronavirus ("COVID-19") pandemic. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. These risks and uncertainties, along with the risk factors discussed under "Item 1A. - Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021 ("fiscal 2021"), and in other written or oral statements made from time to time by ADP, should be considered in evaluating any forward-looking statements contained herein.

NON-GAAP FINANCIAL MEASURES

In addition to our U.S. GAAP results, we use adjusted results and other non-GAAP metrics to evaluate our operating performance in the absence of certain items and for planning and forecasting of future periods. Adjusted EBIT, adjusted EBIT margin, adjusted net earnings, adjusted diluted earnings per share, adjusted effective tax rate and organic constant currency are all non-GAAP financial measures. Please refer to the accompanying financial tables in the "Non-GAAP Financial Measures" section for a discussion of why ADP believes these measures are important and for a reconciliation of non-GAAP financial measures to their comparable GAAP financial measures.



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EXECUTIVE OVERVIEW



Highlights from the six months ended December 31, 2021 include:
10%                          80 basis points                        13%
Revenue Growth               Earnings Before Income Taxes Margin    Diluted EPS Growth
                             Expansion

10%                          80 basis points                        13%
Organic Constant Currency    Adjusted EBIT Margin Expansion         Adjusted Diluted EPS
Revenue Growth                                                      Growth




       Employer Services                      PEO Services
   7%  Pays Per Control              15%      Average Worksite Employee Growth


                   Cash Returned via Shareholder Friendly Actions
  $1.8B            $0.8B Dividends | $1.0B Share Repurchases


We are a leading global provider of cloud-based Human Capital Management ("HCM") technology solutions to employers around the world. The global COVID-19 pandemic has had a significant impact on the global business environment and on our clients and we continue to advance and offer our HCM services, including the processing of payroll and tax obligations, to our clients during this time. ADP's efforts have also been focused on providing information and tools throughout the pandemic to help clients understand and navigate the governmental relief that has been adopted globally. In addition, we continue to add features to our Return to Workplace solution that assists our clients in bringing their employees back to work safely through a comprehensive set of tools designed to streamline the entire process.

In the second quarter, we achieved new product milestones as we continue to invest in our portfolio. We made further progress towards the development of a new, unified user experience, and we introduced this modernization to our RUN Powered by ADP ® and Next Gen HCM client bases in the U.S. and to our iHCM client base in Europe. We reached a milestone of processing one million pay slips for a single client, on a single day, for the first time in our history. At the other end of the spectrum, we continued to see growth in our new Roll™ by ADP mobile application, which serves the micro segment. Innovation is inherent in ADP's business, and we have a growing, agile research and development organization committed to delivering solutions in the market that redefine what HCM solutions can do for employers.

For the six months ended December 31, 2021, we delivered solid revenue growth of 10%. Our pays per control metric, which represents the number of employees on ADP clients' payrolls in the United States when measured on a same-store-sales basis for a subset of clients ranging from small to large businesses, grew 7% for the six months ended December 31, 2021 as compared to the six months ended December 31, 2020. PEO average worksite employees increased 15% for the six months ended December 31, 2021, as compared to the six months ended December 31, 2020. This remains a very dynamic and challenging business environment for our clients and prospects, but we believe the value of working with a leading, world class provider like ADP has become more compelling than ever. We see evidence of this reflected in our continued sales momentum, as well as our very high levels of client satisfaction and retention, which continue to drive our positive financial results.

We have a strong business model, generating significant cash flows with low capital intensity, and offer a suite of products that provide critical support to our clients' HCM functions. We generate sufficient free cash flow to satisfy our cash dividend and our modest debt obligations, which enables us to absorb the impact of downturns and remain steadfast in our reinvestments, our longer term strategy, and our commitments to shareholder friendly actions. We are committed to building upon our past successes by investing in our business through enhancements in research and development and by driving meaningful transformation in the way we operate. Our financial condition remains solid at December 31, 2021 and we remain well positioned to support our associates and our clients.



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