ADP Corrects False and Misleading Statements by Pershing Square

ROSELAND, NJ--(Marketwired - Oct 31, 2017) - ADP (NASDAQ: ADP) today issued the following statement:

"ADP strongly rejects the false and misleading statements made yesterday by Pershing Square's Bill Ackman in his various press releases and his 18-page letter to Institutional Shareholder Services (ISS). Consistent with our responsibilities under Regulation FD and ISS' long-standing policy, ADP has not disclosed any material non-public information in its meetings with ISS or any other party. Our discussion with ISS was based entirely on information included in the investor presentation filed with the Securities and Exchange Commission (SEC) on September 12, 2017, as well as other publicly available materials and filings."

"ADP will be submitting a complaint with the SEC regarding Mr. Ackman's false and misleading statements in yesterday's press releases and letter to ISS. Mr. Ackman's reckless and unfounded assertions continue to undermine his credibility and are inconsistent with the temperament of a reputable Board member."

Here are the facts:

Labor Productivity Has Increased
Despite Pershing Square's assertions, ADP's investments in technology and service have resulted in ongoing productivity gains and a more competitive salesforce.

Page 30 of the investor presentation shows new business bookings have increased at a 7% compound annual growth rate (CAGR) from FY 2011 to FY 2017 while ADP's sales force only grew at a 4% CAGR over the same period. Similarly, adjusted EBIT per full-time employee, excluding client funds, grew at a 7% CAGR from FY 2011 to FY 2017.

New Products Disclosed in Investor Presentation
Despite Pershing Square's assertions, all new products and technology initiatives that ADP discussed with ISS were disclosed in ADP's investor presentation.

Page 20 of the investor presentation references a "low code" application development platform that will launch in 2018. While ADP has not described this as "Vantage 2.0," based on its core functions and capabilities that is likely what ISS referenced in its report. ADP has dramatically increased spending on R&D and innovation and is now the largest HCM provider in the cloud, with 83% of its clients on strategic cloud-based platforms. ADP was the first company to harness Big Data for HCM applications and develop mobile solutions - and today it has the #1 HCM mobile app.