Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Q3 2018 Earnings Presentation

21 slides from Broadridge Financial Solutions's earnings presentation, May 8, 2018

  1. Slide 1: Earnings Webcast & Conference Call Third Quarter and Nine Months of Fiscal Year 2018

    EXHIBIT 99.2 Earnings Webcast & Conference Call Third Quarter and Nine Months of Fiscal Year 2018 © 2017 | 1

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform

  3. Slide 3: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation are presented in accordance with U.S. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstan

  4. Slide 4: Use of Non-GAAP Financial Measures: Free Cash Flow

    Use of Non-GAAP Financial Measures Free Cash Flow In addition to the Non-GAAP financial measures discussed above, we provide Free cash flow information because we consider Free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash g

  5. Slide 5: Third Quarter 2018 Highlights and Financial Summary

    Third Quarter 2018 Highlights and Financial Summary ▪ Strong third quarter 2018 financial results • Total revenues up 6% to $1.1 billion • Recurring fee revenue growth of 8% to $639 million • Strong Operating income and margin growth • Diluted EPS and Adjusted EPS rose 43% and 45%, respectively, aid

  6. Slide 6: Business Update

    Business Update ▪ Heightened capital markets activity a tailwind in 3Q 2018 • Higher trading volumes contributed to revenue growth for both GTO and ICS segments ▪ ICS Total revenues up 4% • Recurring revenue growth of 5% ▪ Regulatory communications revenues up 8% as fund flows remained strong ▪ Cust

  7. Slide 7: Third Quarter 2018 Revenue Growth Drivers

    Third Quarter 2018 Revenue Growth Drivers ▪ Third Quarter 2018 Total revenues grew 6% to $1.1 billion +1% 0% +6% +1% +5% $1,072 M $1,009M 3Q'17 Total Revs. Recurring Event-Driven Distribution FX 3Q'18 Total Revs. ▪ Third Quarter 2018 Recurring fee revenues grew 8% to $639 million Organic Growth: 7%

  8. Slide 8: Nine Months 2018 Revenue Growth Drivers

    Nine Months 2018 Revenue Growth Drivers ▪ Nine Months Fiscal 2018 Total revenues grew 8% to $3.0 billion +8% +3% 0% +4% 0% $3,009M $ 2,797M 9M'17 Total Revs. Recurring Event-Driven Distribution FX 9M'18 Total Revs. ▪ Nine Months Fiscal 2018 Recurring fee revenues grew 6% to $1.7 billion Organic Grow

  9. Slide 9: Third Quarter 2018 GAAP and Adjusted Operating Income and Adjusted EPS

    Third Quarter 2018 GAAP and Adjusted Operating Income and Adjusted EPS $ in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in EPS and and Adjusted Operating Income Adjusted EPS $1.10 +13% +45% $150 $152 $1.00 +43% $1.00 +19% $0.90 $0.90 $130 $134 $

  10. Slide 10: Nine Months Fiscal Year 2018 GAAP and Adjusted Operating Income and Adjusted EPS

    Nine Months Fiscal Year 2018 GAAP and Adjusted Operating Income and Adjusted EPS $ in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in EPS and and Adjusted Operating Income Adjusted EPS +32% $2.40 +63% $400 $375 $395 $2.33 $2.10 $350 +40% +60% $32

  11. Slide 11: Segment Results

    Segment Results ($ in millions) Investor Communication Solutions ("ICS") 3Q 9 Month YTD 2017 2018 Change 2017 2018 Change Recurring fee revenues $ 383 $ 403 5% $ 1,036 $ 1,071 3% Event-driven fee revenues 61 67 9% 128 223 74% Distribution revenues 376 385 2% 1,078 1,090 1% Total revenues $ 820 $ 855

  12. Slide 12: Capital Allocation and Summary Balance Sheet

    Capital Allocation and Summary Balance Sheet $ in millions Select Uses of Cash through Summary Balance Sheet Third Quarter FY2018 as of March 31, 2018 Assets CapEx and Software $71 Cash and cash equivalents $ 352 Other assets 3,133 Total assets $ 3,485 M&A* $103 Liabilities and Stockholders' Equity

  13. Slide 13: Fiscal Year 2018 Guidance

    Fiscal Year 2018 Guidance Prior1 Current Recurring fee revenue growth 4 - 6% 4 - 6% Total revenue growth 2 - 4% 2 - 4% Operating income margin - GAAP ~14% ~14% Adjusted Operating income margin - Non-GAAP ~16% ~16% Diluted earnings per share growth2 22 - 26% 28 - 33% Adjusted earnings per share growt

  14. Slide 14: Closing Summary

    Closing Summary ▪ Strong third quarter results • Total revenue growth of 6% ▪ Recurring fee revenue growth of 8% ▪ Equity proxy contest drove 9% growth in event-driven revenues • Diluted EPS and Adjusted EPS rose 43% and 45% to $0.90 and $1.00, respectively, in the third quarter ▪ Closing out a stro

  15. Slide 15: Appendix

    Appendix Bi Broadridge: ©2017 | 15

  16. Slide 16: Tax Act Impact to Broadridge

    Tax Act Impact to Broadridge 2017 2018 2019 FY 3Q YTD 3Q FY FY $ in millions Outlook Indicative Effective Tax Rate (GAAP) 33.1% 12.9% 27.0% ~25% Effective Tax Rate (GAAP) 33.1% 12.9% 27.0% ~25% Net Tax Charges1 - - ($16) ($16) Tax Rate Excluding Non-Recurring Gains & Charges2 33.7% 12.9% 21.7% ~22%

  17. Slide 17: FY17-FY20 Three Year Growth Objectives

    FY17-FY20 Three Year Growth Objectives FY17 - FY20 Three Year Objectives Recurring fee revenue growth 7 - 9% Total revenue growth 5 - 7% Adjusted Operating income margin expansion ~50bps/yr Adjusted EPS Growth1 14 - 18% (1) FY17 - FY20 Three year Adjusted EPS growth objective updated as of February

  18. Slide 18: Reconciliation of GAAP to Non-GAAP Measures

    Reconciliation of GAAP to Non-GAAP Measures (Unaudited - Note: Amounts may not sum due to rounding) $ in millions, except per share amounts Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Operating income (GAAP) $ 130.0 $ 109.7 $ 329.5 $ 234.6 Adjustments: Amortization o

  19. Slide 19: Reconciliation of GAAP to Non-GAAP Measures

    Reconciliation of GAAP to Non-GAAP Measures (Unaudited - Note: Amounts may not sum due to rounding) Three Months Ended March 31, Nine Months Ended March 31, 2018 2017 2018 2017 Diluted earnings per share (GAAP) $ 0.90 $ 0.63 $ 1.84 $ 1.15 Adjustments: Amortization of Acquired Intangibles and Purchas

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Measures - FY18 Guidance

    Reconciliation of GAAP to Non-GAAP Measures - FY18 Guidance (Unaudited) Adjusted Earnings Per Share Growth Rate (1) (2) Diluted earnings per share (GAAP) 28% - 33% Adjusted earnings per share (Non-GAAP) 31% - 35% Adjusted Operating Income Margin (3) Operating income margin % (GAAP) ~14% Adjusted Ope

  21. Slide 21: Broadridge Investor Relations

    Broadridge Investor Relations W. Edings Thibault Investor Relations Tel: 516-472-5129 Email: edings.thibault@broadridge.com © 2017 | 21

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