ADP (ADP) Increases Its Financial Outlook

ADP (NASDAQ: ADP) today held an investor meeting to present the company's strategic vision, transformation initiatives and financial outlook.

ADP is Focused on Long-Term Value Creation

ADP outlined its strategic vision for creating sustainable long-term value and provided details of its operational and financial objectives for the next three years. During its presentation, ADP outlined its initiatives and intent to focus on its culture of operational excellence, performance, and innovation.

"ADP is a world-class company using its strengths to capitalize on the many opportunities we see as the way people and companies work continues to evolve rapidly," said Carlos Rodriguez, President and Chief Executive Officer, ADP. "As we build on our positive momentum and accelerate the pace of execution, our strong financial outlook reflects the strength of ADP's business and our flexibility to pursue a robust strategy through organic innovation and thoughtful acquisitions."

ADP is Building on its Momentum

ADP outlined plans to leverage its progress on its transformation initiatives together with its investments in innovation and distribution to accelerate its momentum:

• ADP is reshaping the HCM industry through new platforms, new product launches, and recent acquisitions, and is the only global HCM provider that can help businesses address the entire worker spectrum from fulltime to freelancer and hire to retire
• ADP has launched differentiated "Next Gen" platforms that will reinforce its leadership in HCM innovation and enhance its U.S. up-market and international product suite
• ADP is leveraging the scale and reach of its global distribution capabilities which continue to provide a competitive advantage
• ADP's transformation initiatives are enabling increased margin expansion and creating additional capacity for innovation and growth

ADP is Accelerating its Transformation

ADP is expanding upon its ongoing transformation by pursuing numerous broad-based initiatives with an emphasis on:

• Go-To-Market Initiatives, including data-enabled market insights and streamlined support
• Product & Portfolio Initiatives, including ongoing client upgrades and infrastructure optimization
• Service Initiatives, including automated service enabler tools and optimized service locations
• Operations & Support Initiatives, including procurement and pay-for-performance programs

ADP Increases and Extends its Financial Outlook

ADP remains committed to its objective of top quartile Total Shareholder Return (TSR) compared to the S&P 500. Building on its revised Fiscal 2018 guidance announced on May 2, 2018, reflecting the positive developments outlined during Investor Day, and extending its financial outlook to Fiscal 2021, ADP now expects to achieve:

• Fiscal 2019 Adjusted EBIT Margin of 21% to 22%, which represents a full one year acceleration of the Fiscal 2020 Adjusted EBIT outlook communicated in its September 12, 2017 Investor Presentation
• Fiscal 2021 Adjusted EBIT Margin of 23% to 25%
• Fiscal 2019 to 2021 annualized revenue growth of 7% to 9%, Adjusted EPS growth of 16% to 19%, and TSR of 18% to 21%

To view ADP's investor day presentation slides or listen to the webcast, visit investors.adp.com.

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