Blackstone and ADPThe Art of Creating Global Value

Greg Beutler, Operating Partner, Blackstone

Davida Lara, SVP and Head of Global Payroll, Blackstone

Paris

MumbaiHong Kong

Madrid

Germany

Beijing

Tokyo

Istanbul

New York

San Francisco

Houston

Atlanta

Boston

Los Angeles

Menlo Park

Dallas

Switzerland

Shanghai

Chicago

Seoul

SingaporeSydney

Dublin

São Paulo

London

Who is Blackstone?

Global Alternative Asset Investment Business

• Invest in businesses through equity acquisitions & debt financing

• Over $350B in AUM

• Private equity, real estate, GSO Capital and hedge fund solutions

Business Model Portfolio

• 100+ portfolio companies with combined revenue over $100B

• Companies with $500M to $10B in revenue

• Average investment time: over 5 years

Objectives

• Create value by improving portfolio company performance

– Growth

– Productivity

– Earnings

– Cash flow

Value Creation Program

Leverage the Buying Power Across the Portfolio Companies Through Strategic Partner Relationships

• Launched cross-portfolio purchasing initiative in 2005

• 100+ portfolio companies engaged

• Visibility to $30B in spend globally

• 700k+ employees

Overall Program Scope

• 75 vendors globally including services across finance, HR, IT, marketing, operations

• About $5B in spend

Strategic Partnerships

• Established relationship in 2011

• 97 portfolio companies

• 330k employees

ADP PartnershipExample Portfolio Companies

Value Creation Imperatives Key Drivers of Value That Strategic Partners Like ADP are Accountable to Deliver

GlobalizationIntegrate disparate platforms effectively

Governance/Compliance IntegrityProtect our brand

Efficiency and ProductivityConcrete business case/economics

Speed of ExecutionMobilized for success with internal and partner resources and predictable project timing

Integrated EngagementA seamless, cohesive end-to-end relationship from sales to implementation to support/service

Service/QualityA differentiated model (resources, process) and integratedacross products and geography

Firm’s Global Payroll Management Footprint

Paris

Mumbai Hong Kong

Madrid

Germany

Beijing

Tokyo

Istanbul

New York

San Francisco

Houston

Atlanta

Boston

Los Angeles

Menlo Park

Dallas

Switzerland

Shanghai

Chicago

Seoul

SingaporeSydney

Dublin

São Paulo

London

Challenges

No centralized master data source for people, organizational and base

headcount data

14+ payroll systems globally: some countries with multiple solutions

in one country

Costly and inefficient fragmented multiple systems or in many cases no systems at all

Global headcount/compensation data: difficult to pull together globally, by division, by region, by country or by function

Risks

• Understanding common global payroll compliance risks and exposure for non-compliance

• U.S. based programs (i.e. Equity, Mobility, Compensation) creating complicated tax triggers on local payrolls

• Compliance issues related to data management, cost/productivity, SOX compliance, and data accuracy

Blackstone Solution

• 1 global system of record

• 1 global partner

• Solution is audit ready, compliant and cost effective

• Multi-country, multi-currency, and multi-lingual

• Defined global payroll essentials and implemented standard operating procedures

• Fully integrated with global general ledger

Blackstone Global Payroll

• Vendor and in country experts ensure payroll/tax law compliance in all regions

• Integration with other enterprise systems increases legal/fiscal compliance and audit readiness

• Timely/accurate employee global payroll data for strategic decision making

• Self-service technologies reduce administration costs and improve data quality

• IXOM separates from Orica as a stand-alone company in 2015

• Tasked with setting up their own payroll capabilities in 13 countries

Worldwide leader in water treatment and chemical distribution in Australia and New Zealand, with a growing presence in Asia and Latin America.

• Evaluated options and ADP offered best operational footprint and ability to execute in the regions with IXOM locations

• Optimized capabilities/spend based upon country specific needs (GlobalView and Streamline deployed)

• Gained insight and confidence from Blackstone Corporate and its portfolio companies experience

• Needed increased visibility for analytical, budgeting, and forecasting purposes

• Increase audit and controls

• Global governance by reducing payroll experts across the globe – significant cost savings/staff reductions

• Conviction based on support from Blackstone Corporate, other portfolio companies experience

Worldwide leader in drug development, delivery and supply partner for drugs, biologics and consumer health products.

• 10,000 employees across 30 global locations

• Historically a regional structure with independent process and systems

• Global growth via acquisitions

• Provides head start in vendor vetting process

• Assists in business case & calculating ROI

• Highlights local payroll legal requirements

• Point of reference for global payroll processes and interfaces

• Risk assessment and issues are managed and tracked

Document current payroll landscape – create a global payroll “blueprint”:

Where To Start

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various risks and uncertainties, actual events or results or the actual performance of the Fund described herein may differ materially from the events, results or

performance reflected or contemplated in such forward-looking statements. Any projections, targets, forecasts and estimates contained herein are based upon certain

assumptions that Blackstone considers reasonable. Projections, targets, forecasts and estimates are necessarily speculative in nature, and it can be expected that some or

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significantly from the assumptions upon which projections contained herein have been based. The inclusion of projections, targets, forecasts and/or estimates herein

should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and the Fund is under no

obligation to update or keep current such information. Unless otherwise indicated, the information provided herein is based on matters as they exist as of the date of

preparation of this Presentation and not as of any future date. Recipients of this Presentation are encouraged to contact Fund representatives to discuss the procedures

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