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", "is designed to" 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 and inflation; 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 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; and supply-chain disruptions. 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, 2022 ("fiscal 2022"), 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, 2022 include:
10%                          100 basis points                       16%
Revenue Growth               Earnings Before Income Taxes Margin    Diluted EPS Growth
                             Expansion

11%                          80 basis points                        16%
Organic Constant Currency    Adjusted EBIT Margin Expansion         Adjusted Diluted EPS
Revenue Growth                                                      Growth




       Employer Services                          PEO Services
   6%  Pays Per Control Growth           10%      Average Worksite Employee Growth

                      Cash Returned via Shareholder Friendly Actions
  $1.4B               $0.9B Dividends | $0.6B Share Repurchases

We are a leading global provider of cloud-based Human Capital Management ("HCM") technology solutions to employers around the world. Our HCM solutions, which include both software and outsourcing services, are designed to help our clients manage their workforces through a dynamic business and regulatory landscape and the changing world of work. We are continuously seeking to enhance our leading HCM solutions to further support our clients.

During the second quarter, we have continued to deliver a broad array of product and service enhancements to our large and growing client base. We continued to roll out our new user experience ("UX") to additional experiences within our key platforms, further improving ease of use for RUN, Workforce Now, and other solutions. We further extended the reach of our Next Gen payroll engine to a broader subset of clients and prospects in our midmarket. We continued to introduce automation and process improvements throughout our organization, all while investing across sales, product, and client service to best position ourselves for the attractive and growing global opportunity in HCM.

For the six months ended December 31, 2022, we delivered solid revenue growth of 10%, 11% organic constant currency. 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 6% for the six months ended December 31, 2022 as compared to the six months ended December 31, 2021. PEO average worksite employees increased 10% for the six months ended December 31, 2022, as compared to the six months ended December 31, 2021.

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 re-investments, longer term strategy, and 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, 2022 and we remain well positioned to support our associates and our clients.



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