ADP Short Overview

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© Copyright 2010 Automatic Data Processing, Inc. ADP Overview

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About ADP

Transcript of ADP Short Overview

Page 1: ADP Short Overview

© Copyright 2010 Automatic Data Processing, Inc.

ADP Overview

Page 2: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 2

ADP History: In the Beginning

In 1949, Henry Taub, a local Paterson, NJ accountant, was inspired by local silk mills to use automation tools to help companies process payroll. His brother, Joseph joined 2 years later to manage deliveries and service. Frank Lautenberg, currently U.S. Senator from New Jersey, became the company’s first salesperson.

Today, ADP is one of the world’s largest providers of business outsourcing solutions with the same core values. We serve to help our clients succeed.

Page 3: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 3

Founded by Henry Taub

1949

Company renamed as

Went public with astock price of $3.

1956

1961

1972

Signed first auto retailerto provide recordkeeping

1981

Revenuestop $500M

Revenues top $1B with 170,000 clients

Revenues hit $100M with 35,000 clientsBegan international expansion

1974

1986

1999

ADP History: 1949 to present

Revenues top $5B with 450,000 clients

2006

2010

ADP with 550,000 clients and 47,000 associates, is one of the world’s largest providers of business outsourcing solutions.

1950 1960 1970 1980 1990 2000

The Company sold Claims Services. Art Weinbach retires as CEO, and Gary Butler is appointed President and CEO.

Page 4: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 4

ADP’s Global Presence

Approximately 550,000 clients and 47,000 associates in 125 countries

Provide services to nearly 50 million workers

Serve approximately 25,000 auto, truck, motorcycle, marine, and RV dealers worldwide

Global service operations: Hyderabad, India; Pune, India; Prague, Czech Republic; and Halifax, Canada

Live hosting centers worldwide

China offices: Shanghai, Beijing

Page 5: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 5

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2005 2006 2007 2008 2009 2010

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2005 2006 2007 2008 2009 2010

ADP Financial Highlights

EPS*

$ EPS

Revenue, net income, and EPS have averaged growth rates of 8%, 9%, and 12% respectively since 2005

$ Billion

Revenues

Net Income

$ Billion

8% average growth rate

8% average growth rate

9% average growth rate

9% average growth rate

12% average growth rate

12% average growth rate

* Excludes Certain Items

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©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 6

72%

14%

14%

Employer Services PEO Dealer Services

ADP Financial Highlights

FY 2010 FinancialsRevenue of $8.9 billion. Approximately 90% recurring revenueRevenue increased by 1% for the fiscal yearPretax Earnings of $1.9 billion. EPS growth of -$0.01 *Market capitalization of $20 billion

$8.9 billion

FY 2010 Revenue Breakdown

* Excludes certain items. Including certain items, EPS growth of -8%

Page 7: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 7

Benefits of Outsourcing

Allow more time to achieve

organizationalgoals and objectives

Allow more time to achieve

organizationalgoals and objectives

Focus on yourcore business

Focus on yourcore business

Increase efficiencyIncrease efficiency

Control costs andcompliance Risk

Control costs andcompliance Risk

Improve employeeproductivity and

satisfaction

Improve employeeproductivity and

satisfaction

Benefits of OutsourcingBenefits of Outsourcing

Page 8: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 8

Did You Know? ADP Quick Facts

ADP…. Is one of only a handful of U.S. industrial companies to be triple-A rated by

Standard & Poor’s and Moody’s

Is the largest provider of HR services in North America, Europe, Latin America and the Pacific Rim

Pays 1-in-6 U.S. employees and over 31 million worldwide

Electronically moved over $1.1 trillion in client tax,direct deposit, and related client funds in fiscal 2010 within the United States

Serves 40+% of the North America auto/truck retailers

Page 9: ADP Short Overview

©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. ©2010 Automatic Data Processing, Inc. Proprietary and Confidential Information. The ADP Logo is a registered trademark of ADP, Inc. Content is subject to change. 9

Did You Know? ADP Clients

Over 80% of the Fortune 500 companies and more than 90% of the Fortune 100 use at least one of ADP’s services

ADP also has nearly 400,000 small business clientswith approximately half having fewer than 10 employees