major mail users

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major mail users
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Major Mail Users Effective Use of Technology
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ADP History

• Automatic Data Processing
• Largest Independent Provider of Computerized
  Transaction Processing
• 40 Consecutive Years of Double-Digit Growth
• 6 Billion Revenue
• NYSE Traded

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Business Units

• Employer Services 55
• Brokerage Services 25
• Dealer Services 15
• Claims Services 5

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ADP Stock Price
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ADP Revenue (in billions)
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Brokerage

• Information Processing Services Division
• Back Office Processing and Accounting in 3
  Countries (U.S., Canada, England)
• Process 25 of all Trades on NYSE NASDAQ
• Process for 3 of Top 7 Internet Brokers
  (Waterhouse, Suretrade and NDB)

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Brokerage

• Investor Communication Services
• Largest Processor of Investor Communications in
  the World
• Core Product Proxy and Interim Distribution for
  Street Name Holders (Street vs.
  Registered)

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Revenue ICS History(in millions)
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Production Operations Cost Vs. Volume
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Brokerage

• Other Products
• Merger Mailings (AOL / Time Warner, MCI Worldcom
  / Sprint)
• Demutualizations (MetLife)
• Time Sensitive Data (Microsoft)
• New Releases
• Reorganizations and Tender Offers
• Dividend Payments
• Mutual Funds
• Registered Clients
• Trade Confirmations
• Brokerage Statements
• Fulfillment

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• Located in Edgewood, New York and New York City
• 800,000 Square Feet on Long Island
• 400,000 Square Feet in NYC, NJ, Boston Canada
• 1000 Associates Increasing to 3,000 During the
  Proxy Season

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Job History

• Total Pieces (Processed Annually) 789 Mil
• Total Jobs (Processed Annually) 45,000
• Average Job Size 17,500
• Proxy Jobs (Mailed Annually) 17,006
• Total Shares 210.4 Bil (Processed During Season)
• Estimated of Outstanding 85 Shares
  Represented by ADP

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Proxy Growth
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Interim Growth
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Challenges and Opportunities

• Pressure on Issuers to Increase Profit Margins -
  SEC/NYSE Regulation and Proxy Pressure
• Environmental Concerns About Paper Usage
• Need to Proliferate Technology in all Aspects of
  Business
• Reduce Internal Unit Cost Per Piece
• Continue to Grow at a Minimum of 20 Per Year
• Create New Products and Markets
• Increase Utilization of Assets, Especially During
  Slack Periods

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How to Achieve Goals

• Create Market Differentiation
• Quality
• Product Flexibility
• Service Profit Chain
• Effective use of Technology

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Market Differentiation

• One Stop Shopping
  (Consultation Design Print
  Mail)
• Value Added Services (i.e. McDonalds / Sun
  Microsystems)
• Capacity / Flexibility ( 1 piece-10 million
  pieces)
• Use of Internet (www.adp.com proxyvote.com
  investordelivery.com)
• Lowest Cost Provider (Postal Discounts)
• Job Tracking System Perfect Results Real Time

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Quality

• ISO 9002
• Leadership Institute
• Listen to Clients and Implement Suggestions
• Measure and Manage

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Product Flexibility

• ADP Offers Multiple Solutions
• New Technology Free, Perfect, Now
• Householding
• Electronic Disseminations of Proxy Material 2
  and Growing at 100 Annually
• Internet Voting 10 of Position
• Telephone Voting 15 of Positions

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Effective Use of Technology

• Intelligent Upgrades
• Poly-wrap
• C-5 Statement Mailers
• BB 300s

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Intelligent Upgrades

• HISTORY
• Proxy Business was Fragmented and Growing Slowly
• Not a Core Business for Brokerage Firms
• Technology Capital Not Available for this
  Industry
• Supported Low Volume (less than 25k) and Their
  (less than ¼) Packages
• Easy Set-up
• High Maintenance
• Thruput 2,500 / hour

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Intelligent Upgrades

continued

• Householding Objectives
• Eliminate Multiple Mailing to Same Person,
  Address, Account Number, etc.
• Lower Postage Cost
• Lower Paper and Printing Costs

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Intelligent Upgrades

continued

• Householding Requirements
• Common Address, SS , Name
• Group up to 6 VIFs Per Package
• Utilize all Existing Equipment and Applications
  Without Degradation of Quality and Efficiency
• C-4 (9x12 Gripper Inserter)
• Poly-wrap
• Statements

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Intelligent Upgrades

continued

• inTelmail Solution
• Able to Modify Existing Flats Inserters,
  Poly-wrappers BB 300s by Adding Open Feed
  Station and Model A Feeder
  (Bonus - Gain of 1 Additional Pocket)
• Existing VIF Can be Used with the Addition of
  End of Set Group I.D., Line code
• Double Detection Sequence No. Group I.D.
  Verification Maintained
• Due to High Speed of Feeder (40k/hr), 2500
  Thruput is Maintained with up to 6 VIFs

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Intelligent Upgrades

continued

• Why inTelmail
• Customer Service
• Communication
• Industry Knowledge
• Equipment Flexibility
• International Experience

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Poly-Wrap

• Merger Documents 2 Thick 7 Inserts
• Proxy Mailings Odd Shapes and Sizes
• Research Reports Time Sensitive
• Traditionally Used in Newspaper and Magazine
  Industry
• inTelmail Feeder Allowed Intelligent Inserting
  with High Quality Control
• Used for Heavy (1 lb.) and Thick (1) Packages
  and Large Volume (100k) Runs
• Lower Postal Discounts for 9x12 Packages
• Thruput up to 18,000 per hour

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C-5 Statement Mailers

• Volume Increase
• 4.2 Million
• Equipment Flexibility
• 10 Thru 9x12
• Statements or Proxies
• Reads Intelligent OMR or Bar-code
• Equipment Thruput
• 4 Page Sets at 2500
• Equipment Cost (Lower Compared to AIMS Type
  Systems)

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BB 300s

• Bridge Between C-4s (9x12) and Poly-wrappers
• Mutual Fund Growth (6x9) Created Demand
• Brokerage Statements (Shift
  to Landscape)
• Technology Closer to Poly-wrap (Rotary
  Feeders, Continuous Product Movement)
• High Reliability, Low Maintenance

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Conclusion

• 1 in all Product Lines
• Use Flexible Technology to Leverage Capital
• Continuous Research Improvement
• complacency is our enemy

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