Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — FY2009 Earnings Presentation
21 slides from Broadridge Financial Solutions's earnings presentation, Aug 11, 2009
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2009 August 11, 2009
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 may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature,
Slide 3: Today's Agenda
Today’s Agenda Opening Remarks and Key Topics Rich Daly, CEO Fourth Quarter & Fiscal Year 2009 Dan Sheldon, CFO Results and Cash Flow Fiscal Year 2010 Guidance Summary Dan Sheldon, CFO Summary and Closing Comments Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relations
Slide 4: Opening Remarks - Key Topics
Opening Remarks Key Topics: • Financial results for the fourth quarter and fiscal year 2009 • A review of closed sales performance and sales pipeline • Overview of fiscal year 2010 financial guidance • An update on our capital allocation policy and use of free cash flow 3
Slide 5: Opening Remarks – Key Topics: Fourth Quarter and Fiscal Year 2009 Financial Results
Opening Remarks – Key Topics Fourth Quarter and Fiscal Year 2009 Financial Results: • Financial performance for the quarter is in-line with expectations and concludes an acceptable fiscal year • Full year Non-GAAP Diluted Earnings Per Share (EPS) of $1.51 per share is slightly over the mid-point of
Slide 6: Opening Remarks – Key Topics: Sales Performance Overview, Closed Sales
Opening Remarks – Key Topics Sales Performance Overview: Closed Sales • Closed sales of $156M grew 5% for the year with (Fee Only $ in millions) Event-Driven (ED) Recurring (RC) High: $185 over 30% growth in recurring fee sales offsetting the significant shortfall in event-driven activity Closed sal
Slide 7: Opening Remarks – Key Topics: Fiscal Year 2010 Guidance Overview
Opening Remarks – Key Topics Fiscal Year 2010 Guidance Overview: • Expecting fiscal year 2010 to be another acceptable year with revenue growth in the range st nd of 4% to 8%; modest growth in 1 half of fiscal year and stronger growth in 2 half • Revenue growth in the business expected to be led by
Slide 8: Opening Remarks – Key Topics: Free Cash Flow & Capital Allocation
Opening Remarks – Key Topics Free Cash Flow & Capital Allocation: Free Cash Flow • Free cash flow generation and strength of recurring ($ in millions) revenues positions us to refine our capital structure •Capital allocation framework will consist of: $290 High: $270 Maintaining existing debt level
Slide 9: Broadridge FY09 Results and FY10 Guidance
Broadridge FY09 Results and FY10 Guidance FY08 4Q09 FY09 FY10 Range Low High DRIVERS Actual Actual Actual Sales 2% 3% 3% 4% 4% Losses -3% -2% -1% -2% -2% Net New Business -1% 1% 2% 2% 2% Internal Growth 3% 0% 0% -2% 0% Event-Driven 0% -1% -1% 2% 3% Distribution -1% -5% -2% 2% 3% Other/FX 2% -2% -2%
Slide 10: Segment Results – Investor Communication Solutions
Segment Results – Investor Communication Solutions FY08 4Q09 FY09 FY10 Range ($ in millions) Actual Actual Actual Low High Revenues $1,575 $587 $1,531 $1,655 $1,727 Growth Rate 1% -7% -3% 8% 13% Fee Revenues $767 $321 $774 $851 $891 Growth Rate 5% 0% 1% 10% 15% Recurring (RC) 8% 3% 5% 7% 10% Event-D
Slide 11: Segment Results – Securities Processing Solutions
Segment Results – Securities Processing Solutions FY08 4Q09 FY09 FY10 Range ($ in millions) Actual Actual Actual Low High Revenues $514 $131 $534 $509 $520 Growth Rate 2% -2% 4% -5% -3% Margin $ $138 $31 $143 $112 $119 Margin % 26.7% 23.7% 26.7% 22.0% 22.9% Margin (bps) Changes 190bps 290 bps Flat 4
Slide 12: Segment Results – Clearing and Outsourcing Solutions
Segment Results – Clearing and Outsourcing Solutions FY08 4Q09 FY09 FY10 Range ($ in millions) Actual Actuals Actuals Low High Revenues $96 $26 $101 $100 $105 Growth Rate 2% 10% 6% -1% 4% Net Interest Income $27 $2 $13 $9 $10 Other Clearing Revenue $50 $18 $63 $68 $70 Outsourcing Revenue $19 $6 $25
Slide 13: Segment Results – Other & Foreign Exchange (FX)
Segment Results – Other & Foreign Exchange (FX) FY08 4Q09 FY09 FY10 Range ($ in millions) Actual Actual Actual Low High Other Fees Revenues $9 $0 $2 $0 $0 Other Fees Margin $9 $0 $2 $0 $0 FX Revenues $14 -$8 -$18 -$30 -$30 FX P&L Margin $6 -$2 -$4 -$10 -$10 Other Interest Expense -$30 -$3 -$14 -$13
Slide 14: Cash Flow (Non-GAAP) – FY09 and FY10 Forecast
Cash Flow (Non-GAAP) – FY09 and FY10 Forecast Unaudited (In millions) Twelve Months Ended FY10 Range Free Cash Flow: June 2009 Low High $252M is within the mid- Ridge Clearing All Other Financing All Other Processing range of our guidance Processing Broadridge Activities Calculation of Free Cash Flo
Slide 15: Broadridge - FY 2010 Financial Guidance Summary
Broadridge - FY 2010 Financial Guidance Summary Revenue growth in a range of 4% to 8% Sales Plan for the year of $165M to $185M Earnings before interest and taxes margin of 16.0% to 16.3% GAAP Diluted EPS in the range of $1.50 to $1.60 Interest expense of approximately $13M Effective Tax Rate of app
Slide 16: Summary
Summary Solid fiscal year 2009 where we maintained and achieved original annual EPS guidance despite unprecedented market conditions Good growth in closed sales with strong growth in recurring fee sales, as pipeline remains robust with promising large opportunities in all segments Exiting fiscal yea
Slide 17: Q&A
Q&A There are no slides during this portion of the presentation 16
Slide 18: Closing Comments
Closing Comments There are no slides during this portion of the presentation 17
Slide 19: Appendix
Ce ee Appendix Appendix 18 Ba Broadridge
Slide 20: Segments – FY10 Financial Guidance Summary
Segments – FY10 Financial Guidance Summary Investor Communication: Revenues 8% to 13% Margins 17.6% to 18.3% Sales $95M to $105M Securities Processing: Revenues -5% to -3% Margins 22.0% to 22.9% Clearing and Outsourcing: Revenues -1% to 4% Operating losses at $13M to $11M Sales Plan $70M to $80M for
Slide 21: Securities Processing Solutions Top 15 Clients
Securities Processing Solutions Top 15 Clients The top 15 SPS clients generate approximately 70% of the SPS segment’s revenues Equity Processing Fixed Top Income Clients Retail Institutional Processing Alliance Bernstein Bank of America/Merrill Lynch* Barclays Capital Services BMO Nesbitt Burns BNP
Broadridge Financial Solutions — FY2009 Earnings Presentation on 6ix