ADP 2012 Annual Report Download - page 20

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Dealer Services
Dealer Services provides integrated dealer management systems (such a system is also known in the industry as a “DMS”), digital marketing
solutions, including website, sales leads, email, search, display and social media marketing services and other business management solutions
to auto, truck, motorcycle, marine, RV and heavy equipment retailers and manufacturers in North America, Europe, South Africa, the Middle
East, and the Asia Pacific region. As of June 30, 2012, over 26,000 auto, truck, motorcycle, marine, RV and heavy equipment retailers in
nearly 100 countries use our DMS products, other software applications, networking solutions, data integration, consulting and digital
marketing services.
EXECUTIVE OVERVIEW
For more than 60 years, ADP has served as a trusted human resources, payroll, benefits, and integrated computing solutions partner to
employers and automotive dealerships around the world. Our mission is to power organizations with insightful solutions that drive business
success by delivering the best solutions to all of our markets ahead of the competition on a consistent basis. ADP’s strengths have traditionally
been in three core areas: a broad suite of products that deliver relief from administrative burdens; a strong service orientation; and strong sales
and distribution.
We have redefined our strategic pillars to align them with our goals which are predicated on driving innovation, service excellence and building
talent. Our strategic pillars are to:
1
Grow our integrated suite of cloud based Human Capital Management (“HCM”),
benefits, and payroll solutions to serve the US market;
1
Invest to grow and scale our market leading HR Business Process Outsourcing solutions by leveraging our platforms and processes;
1
Leverage our global presence to offer clients HCM, benefits, and payroll solutions where they do business; and
1
Grow and deepen our solutions offering to ensure our key adjacencies are market leaders.
We believe the strategic pillars outlined above will help us build on our core competencies and develop new ones as we continue to focus on
delivering stellar service to our clients, creating an environment that fosters innovation, positioning ADP as the global HCM market leader, and
enhancing long-term total shareholder return.
During the year ended June 30, 2012 (“fiscal 2012”), we achieved solid results that reflect the strength and resilience of our underlying
business model despite the challenges posed by the current economic environment. Our focus on product innovation and our investment in
sales associate headcount has led to growth in new business sales and solid revenue retention across our business segments. We are pleased
with the current performance of our strategic acquisitions together with the continued strength in our same-store-sales growth. However, we
continue to be impacted by the decline in high-margin client interest revenues as a result of lower interest rates, partially offset by an increase
in our average client funds balance. We expect the lower interest rates to continue to impact us during the year ending June 30, 2013 (“fiscal
2013”).
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