Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Presentation (May 2025)
56 slides from Broadridge Financial Solutions's investor presentation, May 9, 2025
Slide 1: Powering and transforming financial markets – Investor Presentation May 2025
Powering and transforming financial markets Investor PresentationMay 2025
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") contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Use of Non-GAAP Financial Measures, KPIs and Foreign Exchange Rates
Use of Non-GAAP financial Measures, KPIs and foreign exchange rates Use of Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures including Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share (“EPS”), Fre
Slide 4: Broadridge is powering and transforming financial services
Broadridge is powering and transforming financial services Unique network and business model with a clear growth strategy across our three franchises Platform-based model with recurring revenue structure creates unique value for clients and investors Steady and consistent earnings growth and capital
Slide 5: Long track record of delivering growth and shareholder value
Broadridge has a long track record of delivering growth and shareholder value Total Revenue ($B) 10% Recurring Revenue CAGR 13% Adjusted EPS CAGR (Non-GAAP) 19% Annualized TSR Note: Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 44-55. TSR
Slide 6: We have a unique network and business model
We have a unique network and business model Regulatory Bodies & Trade Associations Broker-dealers & Wealth Managers Investors Public Companies & Funds 10,000+ Corporate issuers 1,000+ Banks and broker-dealers 30,000+ Mutual funds and ETFs 200,000+ Financial advisors 150,000+ Institutional shareholde
Slide 7: Powering a scale business at the intersection of financial services
Powering a scale business at the intersection of financial services Wealth Managers 30,000+ Mutual funds and ETFs 120,000+ Institutional shareholders 170M+ Retail shareholder accounts Capital Markets Firms Asset Managers Corporate Issuers 14 of 15 largest U.S. wealth providers 30% U.S. advisors for
Slide 8: We serve a $225B addressable market of which $60B+ is vended
We serve a $225B addressable market of which $60B+ is vended Source: McKinsey & Co. $25B $24B Broadridge Vended Addressable Market 27% 73% Total Addressable Market $12B $225B $60B BR Vended
Slide 9: Our growth is underpinned by secular demand drivers
Our growth is underpinned by secular demand drivers Digitization of communications Acceleration of trading Democratization of investing Data and artificial intelligence Regulation Governance Capital Markets Wealth & IM
Slide 10: We have aligned our business around these long-term drivers
We have aligned our business around these long-term drivers Extend Governance Scaled to enable doubling of equity and fund positions Crossed $100M threshold in digital revenues Expanded data & analytics with European fund data, board reporting Extended our capabilities across the entire trade lifecy
Slide 11: We have a clear plan for long-term growth
Driving Democratization and Digitization in Governance Drive democratization in regulatory communications Digitize communications Leverage data for asset management Simplify corporate governance Simplifying Trading in Capital Markets Optimize trading and connectivity Simplify post-trade Deliver tran
Slide 12: Investor Communication Solutions (ICS)
Investor Communication Solutions (“ICS”)
Slide 13: We continue to extend our strong and growing Governance franchise
We continue to extend our strong and growing Governance franchise $2.6B ICS Recurring Revenue Avg. annual growth 8% 10% Regulatory Data-Driven Fund Solutions Issuer Customer Communications 8% 14% 04% Note: Growth in constant currency. Information about our use of Non-GAAP measures and reconciliation
Slide 14: We have a unique network and business model…
We have a unique network and business model… Regulatory Bodies & Trade Associations Broker-dealers & Wealth Managers Investors Public Companies & Funds 10,000+ Corporate issuers 1,000+ Banks and broker-dealers 30,000+ Mutual funds and ETFs 200,000+ Financial advisors 150,000+ Institutional sharehold
Slide 15: Sustainable fundamentals underscore consistent position growth
Sustainable fundamentals underscore consistent position growth Position Growth (~9%) More Positions per Investor (5-7%) More Investors (2-4%) Investing Population Growth Market Participation Growth Population growth brings new investors An increasing portion of the population invests Demographics In
Slide 16: Driving democratization and digitization in Governance
Enable democratization via next-gen Regulatory Deliver Data-Driven Fund Solutions Simplify governance for Issuers Transform omni-channel Customer Communications Growth opportunities Continued equity, mutual fund, and ETF position growth Constant need for innovative compliance solutions Global Distri
Slide 17: Global Technology & Operations (GTO)
Global Technology & Operations (“GTO”)
Slide 18: Leading technology provider for capital markets and wealth management
Broadridge is a leading technology provider for capital markets and wealth management $1.6B GTO Recurring Revenue Avg. annual growth 13% 10% Capital Markets Wealth & Inv. Mgmt. 15% Note: Growth in constant currency. Information about our use of Non-GAAP measures and reconciliations to GAAP measures
Slide 19: Capital Markets: technology powers the entire trade lifecycle
Capital Markets: Broadridge technology powers the entire trade lifecycle Initiate order Buy-side Sell-side Middle-office Lifecycle Events Trade Confirmation Allocation of Trade to Sub-accounts Trade Validation Middle-office Matching and Allocation Market Participants Back-office Lifecycle Events Tra
Slide 20: Component based ecosystem redefining wealth management technology
Component based ecosystem with open architecture that redefines wealth management technology Flexible, scalable platform designed to help firms drive innovation and perform more efficiently Delivers digital, modernized advisor capabilities with easy integration through published APIs Integrated tech
Slide 21: Growth opportunities across Capital Markets and Wealth Management
Growth opportunities We are executing a clear growth strategy across Capital Markets and Wealth Management Personalizing the investor experience Optimizing advisor productivity Digitizing operations Optimizing trading and connectivity Simplifying post-trade Delivering transformation and innovation M
Slide 22: A financial model powering sustainable long-term growth with high returns
A financial model powering sustainable long-term growth with high returns
Slide 23: Business and financial model positioned for sustainable long-term growth
Broadridge’s strong business and financial model is positioned to drive sustainable, long-term growth Recurring Revenue Balanced Capital Allocation TSR Adjusted EPS ~100% Free cash flow conversion and mid-to-high teen ROIC 7-9%Sustainable growth (5-8% organic) 8-12% Steady and consistent growth Top-
Slide 24: Steady earnings growth and capital return resulting in compounding TSR
Note: Information about the use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 44 – 55 Our steady and consistent earnings growth and capital return has resulted in a compounding TSR business… 13% 10-year CAGR EARNINGS PER SHARE DIVIDENDS PER SHARE ANNUALIZED TOTAL S
Slide 25: Model begins with Recurring revenue growth anchored in Closed sales
The model begins with Recurring revenue growth, with growth anchored in conversion of Closed sales Recurring Revenue growth Earnings growth Balanced capital allocation Recurring Distribution Event-Driven $6.5BFY’24TOTAL REVENUE REVENUE COMPOSITION RECURRING REVENUE GROWTH Growth in constant currency
Slide 26: Organic Recurring revenue growth of 5-8% for FY'24-FY'26
The demand for our products and secular tailwinds supports organic Recurring revenue growth of 5-8% for FY’24-FY’26 Recurring Revenue growth Earnings growth Balanced capital allocation RECURRING REVENUE GROWTH DRIVERS 5-7pts (2)pts 2-3pts 0 -2pts 7-9%Total Recurring Revenue Growth 5-8pts ORGANIC GRO
Slide 27: AOI margin expansion history
AOI MARGIN EXPANSION HISTORY (bps; NON-GAAP) 50 bps Avg Annual Expansion Target 10 Year average Annual AOI margin expansion 70 bps Broadridge has a long history of being able to expand margins Recurring Revenue growth Earnings growth Balanced capital allocation Note: FY’17 excludes impact of NACC in
Slide 28: Operating leverage through scale, digital growth and cost efficiency
Broadridge generates operating leverage through scale, higher-margin digital growth and cost efficiency, allowing us to fund growth investments while delivering margin expansion Recurring Revenue growth Earnings growth Balanced capital allocation 50-70bps 20-30bps 10-20bps (40-60bps) 40-60bps
Slide 29: Investments are a key part of our financial model
Investments are a key part of our financial model. We invest in high return opportunities that enable us to sustain a high level of Recurring revenue growth Recurring Revenue growth Earnings growth Balanced capital allocation CAPEX Client Platform Investment OPEX Medium Term Long Term Product Enhanc
Slide 30: Committed to strong and balanced capital stewardship
We are committed to strong and balanced capital stewardship… M&A Internal Investment Dividend Share repurchase Maintain investment grade Drive ~100% FCF conversion, monetize recent investments, return ROIC to mid-high teens Capital Allocation Priorities Fund high return internal investments Grow div
Slide 31: Model has consistently delivered on its three-year objectives
This model has consistently delivered on its three-year objectives over multiple cycles cagr 3-year objectives FY’24 – Fy’26 FY’24 results FY’14 – FY’17 FY’17 – FY’20 FY’20 – FY’23 Organic Recurring revenue growth1 5% 5% 8% 5 – 8% 6% Recurring revenue growth 7%2 7% 11%3 7 – 9% 6% Adj. Operating inco
Slide 32: Q3'25 results
Q3’25 results Broadridge
Slide 33: Key messages as of May 1, 2025 earnings call
Key messages as of May 1, 2025 earnings call Broadridge delivered strong third quarter results, including 8% Recurring revenue growth constant currency and 9% Adjusted EPS growth Execution being driven by the resilience of our business, powerful long-term trends and our strategy to digitize and demo
Slide 34: Fiscal year 2025 guidance
Fiscal year 2025 guidance as of May 1, 2025 earnings call Fy’25 guidance updates Recurring revenue growth constant currency (Non-GAAP) 6 – 8% No Change Adjusted Operating income margin (Non-GAAP) ~20% No Change Adjusted earnings per share growth (Non-GAAP) 8 – 12% Middle of Range Closed sales $240 –
Slide 35: Summary financial results
Summary financial results Third Quarter $ in millions, except per share data 2025 2024 Inc./(Dec.) Recurring revenues $1,204 $1,126 7% Total revenues 1,812 1,726 5% Operating income 345 303 14% Adjusted Operating income (Non-GAAP) 405 370 10% Diluted earnings per share $2.05 $1.79 15% Adjusted earni
Slide 36: Third quarter 2025 Recurring revenues
$1,204 +8% 16% 10% 9% Third quarter 2025 Recurring revenues Q3 Recurring Revenues Fiscal Year Recurring Revenue growth $ in millions; growth in constant currency Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 44 – 55 Acquisitions Organic gr
Slide 37: Third quarter 2025 segment Recurring revenues
Third quarter 2025 segment Recurring revenues Regulatory Customer Comms. Data-Driven Fund Solutions Issuer 2% 5% 8% 6% ICS Recurring Revenues Gto recurring Revenues $740 $ in millions; growth in constant currency Information about our use of Non-GAAP measures and reconciliations to GAAP measures may
Slide 38: Key volume drivers: position and trade growth
Key volume drivers: position and trade growth 11% 15% 10% 13% 14% internal trade growth EQUITY & MUTUAL FUND/ETF POSITION GROWTH 1. Q3’24 equity position growth represented 30% of total fiscal year 2024 positions. Q1’24: 6% | Q2’24: 9% | Q4’24: 55% 2. Reflects position growth processed in the same t
Slide 39: Operating income margin and Adjusted Operating income margin
Operating income margin and Adjusted Operating income margin 13.3% 15.4% 15.6% 19.0% 17.5% +60 bps +60 bps OPERATING INCOME MARGIN ADJUSTED OPERATING INCOME MARGIN (Non-GAAP) 22.4% +110 bps ~20.0% 21.4% Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found
Slide 40: Closed sales
Closed sales $ in millions $246 $185 $174 $342 $280 CLOSED SALES $231 $240 – $300 $224
Slide 41: Free cash flow
Free cash flow $ in millions Ytd’25 free cash flow Fiscal Year free cash flow conversion Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides 44 – 55 Free cash flow conversion equals annual Free cash flow divided by Adjusted Net earnings 1 2 95%
Slide 42: Select uses of cash and capital allocation
Select uses of cash YTD’25 Total Capital Returns Capital allocation $ in millions, except per share data $2.16 $2.30 $2.56 $2.90 $3.20 $3.52 11% 6% 11% 13% 10% 10% Dividends per share 2 Includes Software purchases and capitalized internal use software Net investments on new client conversions, inclu
Slide 43: Explanation of Non-GAAP Measures and reconciliation of GAAP to Non-GAAP Measures
Explanation of Non-GAAP Measures and reconciliation of GAAP to Non-GAAP Measures
Slide 44: Non-GAAP Measures Explanation and Reconciliation
Non-GAAP 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 circumstances, results have
Slide 45: Excluded items in Adjusted Operating income and adjusted earnings
We exclude Acquisition and Integration Costs, Restructuring and Other Related Costs, Litigation Settlement Charges, Russia-Related Exit Costs, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, the Software Charge, Gain on Acquisition-Related Financial Instrument, IBM Private C
Slide 46: Reconciliation of GAAP to Non-GAAP Measures (Three Months Ended March 31)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended March 31, Dollars in millions 2025 2024 Operating income (GAAP) $344.9 $302.9 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 48.9 50.6 Acquisition and Integration Costs 6.0 0.8 Litigatio
Slide 47: Reconciliation of GAAP to Non-GAAP Measures (Fiscal Years)
Reconciliation of GAAP to Non-GAAP Measures Fiscal Year ended June 30, Year ended June 30, Year ended June 30, Dollars in millions 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Operating Income (GAAP) $1,017.1 $936.4 $759.9 $678.7 $624.9 $652.7 $598.1 $534.0 $502.3 $468.5 $418.3 Adjustments
Slide 48: Reconciliation of GAAP to Non-GAAP Measures (EPS, Three Months)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended March 31, Dollars in millions, except per share amounts 2025 2024 Diluted earnings per share (GAAP) $2.05 $1.79 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.41 0.42 Acquisition and I
Slide 49: Restructuring and other related costs footnotes
(a) Restructuring and Other Related Costs for the three months and fiscal year ended June 30, 2024 includes $56.0 million of severance and professional services costs directly related to the Corporate Restructuring Initiative. The fiscal year ended June 30, 2024 also includes a $7.0 million asset im
Slide 50: Reconciliation of GAAP to Non-GAAP Measures (EPS, Fiscal Years)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year ended June 30, Year ended June 30, Year ended June 30, Fiscal Year Ended June 30 Dollars in millions, except per share amounts 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Diluted earnings per share (GAAP) $5.86 $5.30 $4.5
Slide 51: Reconciliation of GAAP to Non-GAAP Measures (Footnotes)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (a) Restructuring and Other Related Costs for the three months ended March 31, 2025 includes $5.5 million of severance costs. Restructuring and Other Related Costs for the three months ended March 31, 2024 includes a $7.0 million asset impairme
Slide 52: Reconciliation of GAAP to Non-GAAP Measures (Q3 2025 Recurring revenue)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended March 31, 2025 Investor Communication Solutions Regulatory Data-Driven Fund Solutions Issuer Customer Communications Total Recurring revenue growth (GAAP) 6% 8% 2% 5% 6% Impact of foreign currency exchange 0% 0% 0% 0% 0% Recu
Slide 53: Reconciliation of GAAP to Non-GAAP Measures (FY2024)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year Ended June 30, 2024 Investor Communication Solutions Regulatory Data-Driven Fund Solutions Issuer Customer Comms. Total Recurring revenue growth (GAAP) 5% 8% 7% 1% 5% Impact of foreign currency exchange 0% 0% 0% 0% 0% Recurring reve
Slide 54: Reconciliation of GAAP to Non-GAAP Measures (FY2023)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year Ended June 30, 2023 Investor Communication Solutions Regulatory Data-Driven Fund Solutions Issuer Customer Comms. Total Recurring revenue growth (GAAP) 6% 11% 12% 9% 8% Impact of foreign currency exchange 0% 1% 0% 0% 0% Recurring re
Slide 55: Reconciliation of GAAP to Non-GAAP Measures (Fiscal Year 2025)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year 2025 FY25 Recurring revenue growth Impact of foreign currency exchange (a) 0% - 0.5% Recurring revenue growth constant currency (Non-GAAP) 6 - 8% FY25 Adjusted Operating income margin (b) Operating income margin % (GAAP) ~17% Adjust
Slide 56: Contact Investor Relations
Contact Investor Relations broadridgeir@broadridge.com
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