ADP 2006 Annual Report Download - page 22

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ADP At A Glance
REVENUES
020406080100
65%
22%
13%
020406080100
EARNINGS FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES
75%
18%
9%
-2%
8
•Employer Services •Brokerage Services •Dealer Services •Other
ES BUSINESSES
MARKET-FACING BUSINESS UNITS
> SMALL BUSINESS SERVICES (SBS) Serves
businesses with fewer than 50 employees
> MAJOR ACCOUNTS SERVICES (MA) Serves
businesses with 50-999 employees
> NATIONAL ACCOUNT SERVICES (NAS) Serves
businesses with 1,000 or more employees
>ADP TOTALSOURCE®
Professional Employer Organization —
Provides comprehensive employment admin-
istration outsourcing solutions through a co-
employment relationship, including payroll,
payroll tax filing, employee background checks,
HR guidance, 401(k) plan administration, ben-
efits administration, compliance services,
health and workers’ compensation coverage,
and supplemental benefits for employees
Administrative Services Offering — Provides
an integrated, flexible HR and payroll service
offering, ADP ResourceSM, without the co-
employment relationship, with a menu of
optional services such as 401(k), FSA, and
pay-as-you-go workers’ compensation
> ES INTERNATIONAL SERVICES Serves
multinational and other clients outside the
United States with payroll processing and
HR administration services
PRODUCT-ORIENTED BUSINESS UNITS
> FINANCIAL AND COMPLIANCE SERVICES
Provides employer-related tax services and
electronic money movement services to all
Employer Services business segments,
including SBS, MA, and NAS
>RETIREMENT SERVICES Provides record-
keeping and related administrative
services with respect to various types
of retirement [primarily 401(k)] plans,
deferred compensation plans, and
“premium only” cafeteria plans
> PRE-EMPLOYMENT SERVICES Provides
selection, screening, and compliance
services to assist employers in making strong
hires and reducing hiring-related liabilities
FY06 BUSINESS HIGHLIGHTS
> Served approximately 545,000 clients in
31 countries around the globe
> Paid 1-in-6 U.S. workers and 32 million
people worldwide
> Provided over 50 million workers with one
or more of our services
> Increased client retention to an all-time high
> Achieved our first double-digit organic
revenue growth year since 2001
> Grew new business sales 13% for the year —
fourth quarter new business sales growth of
28% was the strongest quarterly sales
growth in nearly nine years
> Expanded our “beyond payroll” services to
approximately 40% of total ES revenues in
the United States
> Increased average client funds balances
nearly 11% over last year
> Electronically moved over one trillion dollars
in client tax, direct deposit, and related
client funds
> Increased the number of large employers
that have selected our Comprehensive
Outsourcing Services to 40
> Grew the number of companies that have
chosen GlobalViewSM – our multinational
BPO-like solution, launched with a single client
in FY05 – to 48, representing over 450,000
employees
> Launched the ADP National Employment
ReportSM, a real-time new estimate of
employment trends in the U.S. non-farm
private sector, based on a monthly
sampling of active payroll data
KEY DATA
> One of the largest independent computing
services companies in the world
> $8.9 billion in annual revenues
> More than 570,000 clients worldwide
> 46,000 associates
> Rated AAA and Aaa by Standard & Poor’s
and Moody’s, respectively
EMPLOYER SERVICES
The leading provider of a full range of human resource information, payroll, time and labor
management, benefits, and related administration, and BPO solutions that help employers
increase productivity, ensure regulatory compliance, improve employee retention, and control costs.
MAJOR GEOGRAPHIC MARKETS
North America, Europe, Australia, Asia, and Brazil