Financial Highlights

Automatic Data Processing, Inc. and Subsidiaries

(In thousands, except per share amounts and number of employees)

Year ended June 30,                1995            1994   % Increase

Revenue                   $   2,893,742   $   2,468,966        17%
Net earnings (a)          $     394,830   $     334,120        18%
Earnings per share (a)    $        2.77   $        2.37        17%
Cash dividends            $      89,224   $      76,031        17%
Cash dividends per share  $        .625   $         .54        16%
Average number of 
  common shares outstanding     142,556         140,890
Return on equity (a)               20.9%           21.0%

At year end:

Cash, cash equivalents and 
  marketable securities   $   1,291,889   $   1,062,190
Working capital           $     667,920   $     507,243
Total assets              $   3,201,096   $   2,711,751
Long-term debt            $     390,177   $     372,959
Shareholders' equity      $   2,096,615   $   1,691,251
Number of employees              25,000          22,000

(a) Before cumulative effect of accounting changes in 1994 (see Note 
1B.).

1995 Significant Events

• We paid over 18 million wage earners on payday, and issued 33 million W- 2's to employees.
• We filed over 10.5 million quarterly payroll tax returns with 2,000 different taxing authorities, on behalf of 235,000 employers, and also handled all of their correspondence.
• Employer Services strengthened its payroll and human resource (HR) capabilities by acquiring The Application Group, a leading client server and HR software implementor.
• Brokerage Services now provides market data services to 96,000 investment professionals in over 1,200 firms.
• ADP acquired Shark Information Services, a provider of market data services to institutional users, and Wilco, a provider of multi- currency, international clearance and settlement systems (shortly after year-end).
• Investor Communication Services processed over 200 million shareholder mailings, and electronically processed ballots representing 69 billion shares.
• Dealer Services extended its European presence by acquiring Turbodata's 3,000 auto dealer clients in Benelux, France, and Germany.
• Dealer Services now has 13,000 clients with over 100,000 installed applications and over 160,000 computer devices.
• Dealer Services introduced digitized scanning and storage to create a paperless business office.
• Claims Services introduced PenPro, the industry's first pen-based auto estimating system, and enhanced its parts services by acquiring the AutoInfo salvage yard network serving 3,000 clients.
• ADP continued its unequaled growth record by reporting its 136th consecutive quarterly double-digit increase in earnings per share.