{
  "docId": "019dd923-622c-750b-8b9b-d9b3dd5a51e8",
  "docSlug": "1c9c0f306991",
  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2017-08-17 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 43,
  "pageCount": 168,
  "prevPage": 42,
  "nextPage": 44,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 25,
  "notes": "Uses a red box to highlight negative CAGR in Mid-Market and Enterprise segments.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "bar_chart_vertical",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9b-d9b3dd5a51e8/43",
  "deckHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8#slide-43",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.17
      },
      "kind": "callout",
      "text": "ADP reports total client counts 2% – 3% annual growth, but this masks underlying weakness in critical sub-segments of ADP’s business",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "462a05e8-8df2-4b04-ab06-8f56e6d7bcad",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "While ADP has grown its client count in SMB and international (including acquisitions), its Mid-Market and Enterprise performance is poor",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee38-728b-98d3-efbea0d2b27a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.46,
        "x": 0.04,
        "y": 0.3
      },
      "kind": "chart",
      "text": "ADP Client Count (As Reported)",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8e84d418-025e-4bfc-8355-fa0dae231391",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "CAGR: 3%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee38-728b-98d3-f29c5b642c60",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.77
      },
      "kind": "paragraph",
      "text": "While ADP has grown its client count in SMB and international (including acquisitions), its Mid-Market and Enterprise performance is poor",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "86c69243-039b-41ee-8964-cc0aa713eddb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "Note: Based on 2009 Analyst Day given level of sub-segment specifiicity provided. (1) Excludes Dealer Services. (2) Total client count, RUN, Workforce NOW, and PEO clients based on SEC Form 10-K. (3) 510k RUN by ADP client count (10-K). (4) 60k current Workforce Now clients (although not all in Mid-Market) and 5-6k remaining to be implemented. (Q4'Call) (5) Q3'2017 earnings call management notes 2-3k upmarket clients. (6) Implied based on the aforementioned.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "670e643f-b2d6-4729-a230-051ba419caac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.4,
        "w": 0.44,
        "x": 0.52,
        "y": 0.3
      },
      "kind": "table",
      "text": "Clients by Sub-Segment (Select Disclosure)",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82e26d0d-1bc8-4b65-9649-248423face77",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.92,
        "x": 0.04,
        "y": 0.04
      },
      "kind": "title",
      "text": "ADP Reports Positive Overall Client Count Trends But This is Misleading",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1232cf6f-dcb8-4628-ae5c-38ec8cbb6b9e",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "10794957-1922-4626-a10e-e231553d490b",
      "evidence": "Exposing misleading aggregate data by breaking down into sub-segments",
      "confidence": 0.85
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}