Automatic Data Processing Investor Relations Material

Automatic Data Processing, more often than not referred to as ADP, is an American software company headquartered in Roseland, New Jersey. The company is a provider of various software and services for human resource management, aiming to make HR matters simpler and manageable for businesses of all sizes. ADP operates globally, with a presence in over 140 countries and 60,000 employees spread across the globe. The company’s shares are listed on the NYSE.

Founded in 1949, ADP started as a manual payroll processing business by Henry Taub in Paterson, New Jersey. The company's innovative approach to handling payroll quickly gained traction, and over the following years, ADP continued to innovate and was among the early adopters of computerized payroll processing in the 1960s. As the years progressed, ADP expanded its services beyond payroll, branching into human resources, tax, and benefits administration solutions. The company’s growth has been organic and spurred on by numerous acquisitions of other companies in the industry.

When looking at the company’s competition and peers, one finds several companies providing similar services. These include Paychex, Intuit, Workday, and several others.

ADP offers a comprehensive suite of human resources solutions designed to manage various HR tasks and streamline business processes. These solutions cover a wide range of areas:

• Payroll Services: ADP provides a scalable payroll solution suitable for businesses of all sizes. It automatically calculates wages, deducts taxes, and delivers payslips digitally.

• Talent Management: This encompasses everything from recruitment to retirement. Tools within this category assist with applicant tracking, onboarding, performance reviews, and succession planning.

• Benefits Administration: ADP's platform aids businesses in administering and managing employee benefits, ensuring compliance, and offering employees easy access to their benefits information.

• Time and Attendance: The system tracks employee working hours, overtime, and vacations, integrating with payroll for accurate compensation.

The company also offers robust compliance and tax solutions designed to navigate the complex terrain of regulations and tax obligations faced by businesses. These services are tailored to ensure organizations meet regulatory requirements, minimizing risks associated with non-compliance. ADP's tax solutions handle calculations of local, state, and federal taxes, ensuring timely and compliant payroll tax deposits and filings. Its platform also tracks legislative changes, providing businesses with up-to-date insights and helping them adapt to new regulations. Additionally, ADP's compliance solutions offer tools and resources addressing a range of areas, including labor laws, benefits administration, and employment eligibility verification.