NASDAQ Investor Program...Payroll – Service Bureau Payroll – Software . HRIS Time and Labor...

NASDAQ Investor Program Jan Siegmund Chief Financial Officer

December 5, 2012

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, 2012, should be considered in evaluating any forward-looking statements contained herein.

2 © Copyright 2012 ADP, Inc.

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Discussion Points

Business Overview

Market Trends & ADP Strategy

Financial Strength and Capital Allocation

Summary

Q&A

© Copyright 2012 ADP, Inc.

Who is ADP?

One of the world’s largest providers of business outsourcing solutions and services for… Human Resources

Payroll

Benefits

Retirement Administration

Tax Payments & Compliance

Vehicle Dealers

© Copyright 2012 ADP, Inc. 4

A Global Provider

600,000 clients in more than 125 countries – Includes 425,000 small businesses – Includes 26,000 auto dealerships – Over 80% of Fortune® 500 companies – Over 90 Fortune® 100 companies

Associates in 40 countries


Organized to Meet Business Needs

Dealer Services Provides fully integrated technology services & solutions to vehicle dealerships and manufacturers

Employer Services Helps organizations in every facet of the employment cycle


ADP Fast Facts. . .

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Industry Leadership

ADP pays 24 million (1 in 6) workers in U.S., and 10 million abroad Moved about $1.3 trillion in U.S. client funds in 2012* Processed nearly 48 million W-2s* as the largest IRS taxpayer Hosts more than 2 million completed performance reviews Invested $1 billion in HCM product development and acquisitions over last 4 years #68 on Forbes’ “World's Most Innovative Companies” list in 2012

Our People

57,000 associates worldwide Manage 2,000+ tax agency relationships in U.S. and abroad Provide service and support in 26 languages

Financial Stability and Resources

1 of only 4 U.S. companies rated AAA by S&P and Moody’s $10.7 billion in revenue* – #269 in the 2012 Fortune® 500 Fiscally conservative – minimal long-term debt Dividends paid to shareholders continuously since 1974

*ADP’s Fiscal Year 2012, ended June 30


Market Trends & ADP Strategy


Innovation is picking up pace

Human Capital Management

Market trends and external forces are reshaping the industry

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Agile development and adoption (e.g., talent management)

Shift to SaaS and cloud-based solutions

“Consumerization” of enterprise apps

Growth of social media



Market trends and external forces are reshaping the industry (continued)

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Clients needs are changing

Integration within solution and operating / reporting systems

Globalization of workforce

Insights from Big Data



Market trends and external forces are reshaping the industry (continued)

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Disruptive forces in the market

• Impact of healthcare reform

• Increasing state / federal employment, tax regs


Former pillars

Expand profit margins through increased operating efficiency

Refined pillars

Strengthen our core business

Grow integrated suite of cloud-based HCM, benefits, and payroll solutions to serve the U.S. market

Grow our differentiated HRBPO offerings

Invest to grow and scale our market leading HRBPO solutions by leveraging our platforms and processes

Grow share and improve margins in International markets

Leverage our global presence to offer clients HCM, benefits, and payroll solutions where they do business

Enter adjacent markets which leverage our core strategic assets

Grow and deepen our solutions offering to ensure our key adjacencies are market leaders (Dealer, AdvancedMD, CFO suite)

Business Process Innovation (BPI)

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Part of being adaptable means being clear about where we want to take the company


Human capital management 2012 market size U.S. $ billion

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10 8

8 7

4 5

3 2

2 2 1 1 51

Insurance

Retirement

BPO

Benefits

Talent Management

Payroll – Service Bureau

Payroll – Software

HRIS

Time and Labor Management

Accountants

Tax Credit Services

Expense Management Total

43%

57%

$90 billion global market

International U.S.

We believe that the HCM market is attractive – growing at 7%


ADP Employer Services Worldwide Footprint

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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*

* FY’13 for STL

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

Today, ADP has the potential to cover over 95% of all multinational employees


ADP is the n°1 for HR outsourcing services in Europe 30,000 clients 10 million employees served

ADP Market Position in Europe

ADP In-Country Offerings

ADP Multinational Offerings

Rest of Europe n°2 n°2

n°1 n°1

n°1

n°1

n°1

n°1


Key Employer Services Offerings

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ADP Mobile

Functionality

Human Resources Administration

Global/Multinational

HR Outsourcing

Added Value Services (Tax, Insurance)

Payroll

Time & Labor Management

Benefits

Talent Management

Recruiting

Employer Size

Small

Mid-size

Large


We Can Help You Manage the Employee Lifecycle And Maximize Your Most Valuable Assets

Performance Management

Learning

Engagement, Goal Alignment

Sourcing, Screening, Selection

Recognition, Merit, Pay

On-Boarding

Succession Planning

Benefits Administration

Career and Individual Development


ADP Human Capital Management: Complete, End-to-End, Global

Compensation Succession Learning Performance Recruiting

Delivered as a Service

Reporting

Analytics

Processing Managed Comprehensive

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Seamless integration. Complete, End-to-End Suite. Innovative, Cloud-Based Delivery

Cloud-based Software


HR System of Record

Time and Labor Management

Payroll

Mob

ile

Port

al

Key Dealer Services Offerings

Dealer Management System

Business Intelligence

Business Process Outsourcing

Deal Management

Digital Marketing

Mobile Solutions

Phone Systems & Networking


Segm

ents

Auto Marine PowerSports Heavy Truck RV Heavy Equip Agriculture

Total Market Opportunity = $17.5 Billion

http://adpdsmarketing.ds.ad.adp.com/sites/divisionmarketing/Images1/Auto.Dlrships.People/39.jpg

Financial Strength & 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 acquisitions – international expansion and entering adjacent markets that complement our core solutions

– Consistent share repurchase program via open market; reduced common stock outstanding ~10% over past 5 years

– Dividend payout ratio of 55-60%; increased dividend 38 consecutive years

ROE of over 20% last five years

Financial Strength and Capital Allocation


Summary


ADP: Helping Organizations Focus On What They Do Best

Innovation Product Leadership Service Excellence


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.

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