NASDAQ Investor Program. Jan Siegmund Chief Financial Officer

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Transcription:

NASDAQ Investor Program Jan Siegmund Chief Financial Officer December 2013

Forward Looking Statements This document and other written or oral statements made from time to time by ADP 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 be and other words of similar meaning, are forward-looking statements. These statements are based on management s expectations and assumptions 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 include: ADP s success in obtaining, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating payroll taxes, professional employer organizations and employee benefits; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; auto sales and related industry changes; employment and wage levels; changes in technology; availability of skilled technical associates and the impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. 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, 2013, should be considered in evaluating any forward-looking statements contained herein. 2 Copyright 2013 ADP, Inc.

Discussion Points Business Overview Market Trends & ADP Strategy Financial Strength and Capital Allocation Q&A 3 Copyright 2013 ADP, Inc.

Who is ADP? One of the world s largest providers of business outsourcing solutions and services for Employers ($9.5B 5B*) Human Resources Payroll Benefits Time & Attendance Retirement Administration Tax Payments & Compliance Talent Mgmt. Vehicle Dealers ($1.8B*) * Fiscal 2013 4 Copyright 2013 ADP, Inc.

A Global Provider 620,000000 clients in more than 125 countries Over 80% of Fortune 500 companies Over 90 Fortune 100 companies Includes 26,000 auto dealerships Associates in 40 countries 5 Copyright 2013 ADP, Inc.

ADP Fast Facts... Industry Leadership ADP pays 24 million (1 in 6) workers in U.S., and 10 million abroad Moved about $1.4 trillion in U.S. client funds in 2013* Processed 51 million W-2s* as the IRS largest taxpayer Administers benefits for nearly 10 million workers Hosts more than 2 million completed performance reviews Invested $1 billion in HCM product development and acquisitions over last 4 years #65 on Forbes World's Most Innovative Companies list in 2013 Our People 60,000 associates worldwide Manage 7,200+ tax agency relationships in U.S. and abroad Provide solutions in 26 languages Financial Stability and Resources 1 of only 4 U.S. companies rated AAA by S&P and Moody s Fiscally conservative minimal long-term debt Dividends paid to shareholders continuously since 1974 $11.3 billion in revenue* #255 in the 2013 Fortune 500 *ADP s Fiscal Year 2013, ended June 30 6 Copyright 2013 ADP, Inc.

Organized to Meet Business Needs Employer Services Helps organizations in every facet of the employment cycle Dealer Services Provides fully integrated technology services & solutions to vehicle dealerships and manufacturers 7 Copyright 2013 ADP, Inc.

Market Trends & ADP Strategy 8 Copyright 2013 ADP, Inc.

Four Critical Trends for Businesses Today Intensifying Compliance Burden Evolving Workforce Demographics Pressure to be more strategic Attracting, Developing, & Retaining Talent Integrate, Simplify, and Unify 9 Copyright 2013 ADP, Inc..

Part of being adaptable means being clear about where we want to take the company Grow integrated suite of cloud based HCM, benefits, and py payroll solutions to serve the U.S. market Invest to grow and scale our market leading HRBPO solutions by leveraging our platforms and processes Leverage our global presence to offer clients HCM, benefits, and payroll solutions where they do business Grow and deepen our solutions offering to ensure our key adjacencies are market leaders (Dealer, AdvancedMD, CFO suite) 10 Copyright 2013 ADP, Inc. 10

HCM Market: Large and Growing HCM U.S. market size in $ billion* Insurance 10 Retirement 8 BPO 8 Benefits 7 Talent Management Payroll Service Bureau Payroll Software HRIS Time and Labor Management Accountants Tax Credit Services Expense Management Total 4 5 3 2 2 2 1 1 51 * ~7% growth Sources: IDC, Nelson-Hall, Gartner, Everest, Bersin, Census Bureau, BLS, ADP and competitor filings, and ADP $90 billion global market 11 Copyright 2013 ADP, Inc.

ADP Employer Services Worldwide Footprint Today, ADP has the potential ti to cover over 95% of all multinational employees In-country, GlobalView and Streamline GlobalView and Streamline Streamline Only Australia Brazil Canada China France Germany India Ireland Italy Netherlands New Zealand Poland Portugal Spain Switzerland UK USA Argentina Austria Belgium Czech Republic Denmark Finland Hong Kong Hungary Indonesia Japan Korea Malaysia Mexico Norway Philippines Romania Russia Singapore Slovakia Sweden Taiwan Thailand Turkey Vietnam Algeria* Bahamas* Bahrain Bangladesh* Bermuda* Bulgaria Bosnia Channel Islands* Chile Colombia Costa Rica Croatia Cyprus Domenican Rep* Ecuador Egypt El Salvador Estonia Greece Guatemala Honduras Israel Jordan Kazakhstan Kenya* Kuwait Latvia Lebanon Lithuania Luxembourg Macedonia Monaco* Morocco Nicaragua* Oman Pakistan* Panama Peru Puerto Rico* Qatar Saudi Arabia Serbia Slovenia South Africa Sri Lanka Tunisia UAE Ukraine Uruguay* Venezuela * Planned 12 Copyright 2013 ADP, Inc.

ADP Market Position in Europe ADP is the n 1 for HR outsourcing services in Europe 30,000 clients 10 million employees served ADP In-Country Offerings ADP Multinational Offerings Rest of Europe n 2 2 n 2 n 1 n 1 n 1 n 1 n 1 n 1 13 Copyright 2013 ADP, Inc.

Our Approach to Helping You Succeed Copyright 2013 ADP, Inc.

Comprehensive HCM Framework Cloud-based Software Recruiting Learning Performance Compensation Succession Mobile Portal HR System of Record Time and Labor Management Reporting Analytics Payroll Processing Managed Comprehensive Delivered as a Service Seamless integration. Complete, End-to-End Suite. Innovative, Cloud-Based Delivery. 15 Copyright 2013 ADP, Inc.

Compliance: Affordable Care Act (ACA) Multi-faceted requirements Shared responsibility Workforce Planning Eligibilityibilit Affordability Enrollment Compliance Management

Industry Vision: Comprehensive HCM with Robust Multi-Channel User Experience One source of truth for full spectrum of stakeholders Unique user interactions and intuitive interface Rich analytics Personalized dashboard Search Business Intelligence Workflow / Inbox Talent profiles Org charts Calendar Reporting Employee self service 17 Copyright 2013 ADP, Inc..

Key Dealer Services Offerings Dealer Management System Business Intelligence Business Process Outsourcing Deal Management Digital Marketing Mobile Solutions Phone Systems & Networking Segments 18S Auto Copyright 2013 ADP, Inc. Total Market Opportunity = $17.5 Billion Heavy Truck PowerSports RV Marine Heavy Equip Agriculture

Financial Strength & Capital Allocation 19 Copyright 2013 ADP, Inc.

Financial Strength and Capital Allocation ADP is one of four non-financial companies rated AAA by both leading U.S. rating agencies Large recurring revenue base resulting in strong, consistent cash flow generation, enables investment in business Low capital requirements Capital allocation and shareholder friendly actions Strategic t acquisitions iti international ti expansion and entering adjacent markets that t complement our core solutions Consistent share repurchase program via open market; reduced common stock outstanding ~5% over past 5 years Target dividend payout ratio of 55-60%; increased dividend 39 consecutive years ROE of over 20% last five years 20 Copyright 2013 ADP, Inc.

Summary 21 Copyright 2013 ADP, Inc.

Recognition Selected Honors 2013 Rank: #65 2013 Rank in Financial Data Svcs: #1 2013 Rank: #27 2013 Rank: #19 2013 Rank: #16 22 Copyright 2013 ADP, Inc. The ADP logo and ADP are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.

Use of Material Contained Herein The information contained in this presentation is being provided for your convenience and information only. This information is accurate as of the date of its initial presentation. If you plan to use this information for any purpose, verification of its continued accuracy is your responsibility. ADP assumes no duty to update or revise the information contained in this presentation. You may reproduce information contained in this presentation provided you do not alter, edit, or delete any of the content and provided you identify the source of the information as Automatic Data Processing, Inc., which owns the copyright. 23 Copyright 2013 ADP, Inc.