ADP 2004 Annual Report Download - page 6

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Our confidence in ADP’s future is reflect-
ed in our acquisition of nearly 16 million
shares of ADP common stock for about
$650 million, and in our Board’s
November 2003 decision to increase
our dividend for the 30th consecutive year,
by 17%.
ACQUISITIONS AND DISPOSITIONS
Our growth objectives include supple-
menting internal growth with strategic
acquisitions that extend our markets (i)
geographically, (ii) by broadening our mar-
ket potential, (iii) by adding applications
or services to our product set, or (iv) by
adding clients in our existing markets. In
fiscal 2004, we acquired six businesses with
annualized revenues of about $130 million
for an aggregate purchase price of approxi-
mately $270 million.
The largest transactions were the
acquisitions of ABZ, a Netherlands-based
provider of insurance distribution services
by our Claims Services division, and EDS’s
Automotive Retail Group by Dealer
Services.
In June, we announced the acquisition
of Bank of America’s third-party clearing
operations. We expect this transaction to
close before the end of calendar 2004.
In addition, each year we review our
business and product lines and dispose of
or close businesses that are no longer
strategically relevant. In fiscal 2004, we
disposed of five businesses or product lines
with aggregate revenues of approximately
$80 million.
Arthur F. Weinbach
Chairman and Chief Executive Officer
Gary C. Butler
President and Chief Operating Officer
PROMOTIONS AND APPOINTMENT
We recently announced the following
senior executive promotions: Mike Martone
to Group President, Employer Services;
Steve Anenen to President, Dealer Services;
and Vince Coppola to President, Employer
Services’ Major Accounts division.
During the year we also announced
the promotions of Marianne Brown
(Brokerage Services) and Vincent De Palma
(Employer Services) to Corporate Vice
President in recognition of their signifi-
cant contributions to ADP’s success.
We were also very pleased that Glenn
Hubbard joined our Board of Directors.
Glenn is now the Dean of The Graduate
School of Business at Columbia University
following his role as chair of the U.S.
Council of Economic Advisors.
LARRY TISCH
We lost a legend with the death of Larry
Tisch. Larry was a Director of ADP
from 1972 until his retirement at last
November’s Annual Meeting of Share-
holders. His wisdom and contributions to
ADP’s success were significant. We will
miss him.
IN CLOSING
We have been humbled by the last few
years, but are proud of the leadership of
our senior executive team and the com-
mitment, dedication and contributions of
all of our associates. We are positioned to
look forward to the future with increasing
optimism. Many thanks for your support
and encouragement.
We face the future
well positioned for
the challenges and
uncertainties of fiscal
2005 and beyond.