AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2012

Automatic Data Processing, Inc. (ADP) for the fiscal year ended June 30, 2012, reported total revenues of $10.7 billion, representing an 8% increase year-over-year. This growth was primarily driven by strong performance across its key segments: Employer Services (up 7%), Professional Employer Organization (PEO) Services (up 15%), and Dealer Services (up 10%). Net earnings from continuing operations increased by 11% to $1.4 billion, with diluted EPS rising 12% to $2.82. A notable event during the year was a $66.0 million gain from the sale of assets related to a third-party expense management platform, which contributed to EPS growth. The company's financial health remains robust, characterized by strong cash flow from operations ($1.9 billion), consistent client retention rates (91%), and a solid balance sheet with $1.7 billion in cash and marketable securities. ADP continued to return value to shareholders through dividends and share repurchases, highlighting its commitment to shareholder returns. The company is strategically focused on growing its cloud-based Human Capital Management (HCM) solutions, scaling its HR Business Process Outsourcing (BPO) services, expanding its global HCM offerings, and deepening its solutions in key adjacent markets.