ADPAmanda Brunssen

Economic Overview U.S. economy grew 2% during the 3rd

quarter Stronger consumer activity and a surge

in federal government spending Gross Domestic product has expanded

for 13 consecutive quarters Government spending in the 3rd quarter

contributed to growth for the first time in more than two years

Economic Overview Cont. Drop in exports, contracted for the first time in

more than 3 years and weaker business spending

Slower growth ahead by disappointing earnings and profit warnings along with concerns about U.S. tax and spending policies

Consumers will dial back spending after the presidential election“fiscal cliff” package of spending cuts and tax

increases to begin in January

Summary “Automatic Data Processing, Inc. provides business outsourcing solutions. The company

operates in three segments: Employer Services

Provides a range of human resource (HR) information, payroll processing, time and labor management, and tax and benefits administration solutions and services, including traditional and Web-based outsourcing solutions to employers. Its solutions assist employers to recruit, staff, manage, pay, and retain their employees.

Professional Employer Organization (PEO) Services Provides employment administration outsourcing solutions comprising payroll, payroll tax filing,

HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers compensation coverage, and other supplemental benefits for employees�

Dealer Services. Offers integrated dealer management systems, digital marketing solutions, and other business

management solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment. It also provides integrated applications for various department and functional areas of the dealership, such as customer relationship management applications, front-end sales and marketing/advertising solutions, and IP telephony phone systems; and computer hardware, hardware maintenance services, software support, system design, and network consulting services, as well as designs, establishes, and maintains communications networks for its dealership clients. In addition, this segment offers digital marketing solutions and services, including Websites, sales leads, email, search, display, and social media marketing and management services to the automotive industry”

ADP Founded in 1949 and is headquartered

in Roseland, New Jersey Mission: Power organizations with

insightful solutions that drive business success

Vision: Be the world’s authority on helping organization focus on what matter

ADP Values:

Integrity is EverythingInsightful ExpertiseService ExcellenceInspiring InnovationEach person countsResults-drivenSocial responsibility

Leadership Carlos A. Rodriguez

President and Chief Executive Officer Named in November 2011 Mr. Rodriguez has been with ADP since 1999, most recently as President and

Chief Operating Officer since May 2011, and previously as President of National Account Services and Employer Services International. He joined ADP through its acquisition of Vincam, where he served initially as CFO for a short period before becoming President of ADP TotalSourceSM. Under his leadership, TotalSourceSM became the fastest growing, as well as the largest, Professional Employer Organization (PEO) in the industry.

Mr. Rodriguez then spent several years as President of ADP's Small Business Services (SBS), which included ADP's small business payroll services, ADP TotalSourceSM and ADP Retirement Services. Under his leadership, SBS launched "RUN Powered by ADP®" payroll management service, which has become one of ADP's fastest growing product platforms.

Mr. Rodriguez holds master of business administration and bachelor of arts degrees from Harvard University. In addition to his work at ADP, Mr. Rodriguez serves on the Boards of ADP, Hubbell Inc. and A-T Children's Project. Also, he is a member of World 50, Inc.

Leadership Mark D. Benjamin

President, Employer Services International Appointed in July 2011 After joining ADP in 1992 as a payroll sales representative, Mr.

Benjamin progressed rapidly within sales and sales leadership roles to become a General Manager in 1999. Over the next several years, his responsibilities included serving as Senior Vice President of service and sales roles for TotalSourceSM as well as the overall leadership of the unit in 2007.

Mr. Benjamin holds a bachelor's degree in international finance and marketing from the University of Miami.

Previously, Mr. Benjamin was Senior Vice President of ADP's Small Business Services division's service and operations, including its TotalSourceSM and Resource® offerings. He had responsibility for 350,000 clients serviced by 3,000 associates and revenues of $1.95 billion.

Leadership Steve J. Anenen

President, Dealer Services Group Promoted in August 2004, been in company for 36 years Prior to this, he held the position of Senior Vice President, North America

Transaction Systems, ADP Dealer Services North America. In this role, which he held for six years, he was responsible for sales, implementation and support of ADP Dealer Services’ Major Markets organization, which comprises over 80% of the dealer network in North America. Prior to this, Mr. Anenen was Vice President of the Major Markets segment of ADP Dealer Services and served as General Manager of Dealer Services’ Chicago region, where he was Crystal Award recipient for top region of the year five times.

Mr. Anenen has held positions of increasing responsibility during his 36-year tenure with ADP. Prior to joining Dealer Services, he held positions of Director of Client Relations with the company’s Employer Services group, as well as Branch Manager of the Manufacturing/Wholesale Distribution Services division.

Mr. Anenen is a graduate of Northwestern University and did graduate work at the University of Notre Dame.

Leadership Christopher R. Reidy

Corporate Vice President and CFO Since 2006 Mr. Reidy came to ADP from AT&T where he spent more than nine

years in positions of increasing responsibility in their financial organization. During his tenure with AT&T he served as Controller and Chief Accounting Officer, was CFO for their Consumer and Business Services Divisions, and led the Business Planning and Analysis function. Prior to AT&T, Mr. Reidy was the Chief Financial Officer and Information Technology Head at the National Basketball Association, and was an audit partner at Deloitte & Touche.

Chris is a CPA and holds a bachelor of science degree in accounting from St. Francis College and a master of business administration degree from the Harvard Business School. He is also a member of the Board of Directors for Jersey Battered Women’s Services.

Success Factors Products Leadership

ADP is committed to PRODUCT LEADERSHIP - delivering the best solutions to all of our markets ahead of the competition on a consistent basis.

We know that new products and services are essential to business growth. They help us to better meet the needs of those we serve, as we attract new clients and grow and strengthen our relationship with our existing clients. Our products and services provide tangible solutions that differentiate us from our competitors.

ADP's product offerings include Web-based solutions throughout all of our businesses, in addition to traditional service bureau offerings.

We are leveraging the Internet to deliver solutions to an ever-expanding range of prospects.

ADP product leadership, like World Class Service, not only requires a sustained, enterprise-wide commitment from us, but also is one of the key elements for our future success.

Success Factors World Class Service

ADP is committed to WORLD CLASS SERVICE. It is at the core of our service culture and will always be the heart of our relationship with our clients.

We define World Class Service as an ongoing journey toward service excellence. World Class Service challenges us to consistently reset the high bar of our performance levels to meet or exceed the expectations of an ever-more-competitive marketplace.

ADP's commitment to World Class Service begins with the first impression we make on a sales call...how smoothly we install our systems...and how effectively our solutions work. It is a combination of everything we do to create a client relationship - and make it flourish.

We measure the success of our commitment to World Class Service through client satisfaction scores and client retention rates. Those two key metrics have historically reflected how well we serve our clients.

What differentiates ADP from the competition? We believe that service demands increasingly higher levels of excellence - and

there is no level of service today that cannot be further improved tomorrow.

Success Factors Employer of Choice

Outstanding associates help ADP to succeed. ADP's continued success depends on our ability to attract, motivate,

empower, and retain exceptionally talented individuals that reflect the diverse business environments we serve.

* We want to attract and retain associates who have the skills, shared beliefs, and dedication to service excellence that can help us compete - and continue to win - in both the local and global marketplace.

* We especially need to recruit and retain associates with specialized skills that are essential to succeed in the modern, global business environment.

That's why ADP has made a long-term commitment and investment in becoming an EMPLOYER OF CHOICE - creating a culture that contributes to ever-increasing associate satisfaction levels.

We offer our associates challenges, opportunities for advancement, competitive compensation and benefits, and training and development in a fast-paced business environment that is also sensitive to work-family and flexible schedule needs.Our goal is to be the clear Employer of Choice for our current and future associates.

Recent Awards and Achievements Fortune’s 2012 list of America’s Most Admired Companies Forbes 2012 list of World’s Most innovative Companies Computerworld’s List of 100 Best Places to Work in IT 2012 2012 Working Mother Award US Companies with Triple-A Credit Rating InformationWeek 500 2011 List 2011 Training Magazine Award 2012 DiversityInc Top 50 Companies for Diversity 2011 Diversity MBA Magazine: “50 Out Front for Diversity

Leadership: Best Places for Diverse Managers to Work” 2012 Corporate Equality Index (100% rating) 2011 Garden State Equality Company of the Year

Community Initiatives Community Outreach-Making a Difference Workplace Giving Program/Matching Gift Program Workplace Partnership for Life Military Partners American Heart Association World Class Community Service Program Special Olympics Chicago Cares United Way Community Health Charities Susan G. Koman for the Cure March of dimes Habitat for Humanity American Cancer Society Disaster Relief Feeding America

Workforce Now http://

www.youtube.com/watch?v=3DEPtwcPLfY&feature=relmfu

In the news "We are now among the largest HR system providers in the

marketplace," says Michael Capone, ADP's chief information officer. It's a message he admits the company could do a better job of promoting.

While everyone knows that ADP is a leader in the payroll world, many don't realize it has offered cloud-based HR software products for about a decade that support recruiting, talent management, time and attendance, and benefits administration, along with payroll. Its HR offerings include Workforce Now for companies with fewer than 1,000 employees, GlobalView for multinational organizations, and Vantage HCM, which it launched last October for companies with more than 1,000 employees. Most of ADP's tens of thousands of HR software customers up to now have been midsize firms, though the number of larger firms is increasing since the launch of Vantage.

Strengths Strong market position

Client retention capabilities

Still innovatinghttp://

www.youtube.com/watch?v=jLy29Di3fNw

Weaknesses Low margins compared to competitor

Large Market Cap

Opportunities More small and medium scale

businesses

Cloud-based HR software products

Threats Intense competition

Economic slowdown

Competition Paychex

Founded in 1971 by B. Thomas GolisanoMake payroll outsourcing easy and

affordable for small businessesServices include payroll processing,

retirement services, insurance, and a fully outsourced human resource solution

Competition Paychex, Inc. provides payroll, human resource, and benefits outsourcing

solutions for small to medium sized businesses. Payroll processing

○ Calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients payroll obligations. The company also �offers

Payroll tax administration services; employee payment services; and regulatory compliance services○ New-hire reporting and garnishment processing. In addition, it provides human resource

outsourcing services, such as paychex HR solutions comprising payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services.

Insurance services for property and casualty coverage○ Workers compensation, business-owner policies, commercial auto, and health and benefits �

coverage, including health, dental, vision, and life; eservices, an online human resource administration software products for employee benefits management and administration, and time and attendance solutions; and other human resource services and products, such as employee handbooks, management manuals, and personnel and required regulatory forms.

Competition Cont. Martin Mucci

President and CEO Efrain Rivera

Senior Vice President, CFO, and Treasurer Mark Bottini

Senior Vice President, Sales Michael Gioja

Senior Vice President, IT, Product Development and Development

Andrew ChildsVice President, Marketing

Competition P/E: 21.22 20.53 EPS: $1.52 2.82 Price: $32.33 $58.14 High/Low: 27.11-$34.70 $47.60-

59.96 Dividend: $1.32 $1.58

CANSLIM

ROE = 22.90%

00.26

Debt/Equity

Industry Debt/Equity

CANSLIMADP PAYX DJ Index

% Chng % Chng Difference % Chng Difference4.7% 2.5% 0.02 0.2% 0.045.7% 7.5% -0.02 -0.9% 0.079.9% 12.3% -0.02 7.2% 0.03

11.1% 10.7% 0.00 7.4% 0.0431.5% 17.0% 0.14 17.9% 0.1423.5% -18.9% 0.42 -5.1% 0.29

IBD Industry Group Strength A-

Ratios1.08 1.07 1.04 0.30Quick Ratio

4.51% 3.66% 4.51% -22.10%ROA

22.71% 20.87% 22.11% 8.20%ROE

8.15 6.300 5.124 4.57Market to Book

2011 2010 2009 Industry

13.02% 12.69% 24.08% 8.16%Profit Margin

Industry Averages Current Ratio: 2.1 Quick: 0.3 Inventory Turnover: 7.2 Total Asset Turnover: 0.8 Profit Margin: 8.16% ROA: -22.1% ROE: 8.2% P/E: 29.5 Market to Book 4.57

Price Estimates Yahoo: $68 Wall Street Journal: $68 $66.90

3 Main Points One of the last four AAA-rated

companies in the United StatesWhat are the other 3 companies?

Leader Earnings coming out tomorrow

Recommendation Buy 100 Shares

Around $5,783