Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 FY2015 Earnings Presentation
18 slides from Broadridge Financial Solutions's earnings presentation, May 8, 2015
Slide 1: Earnings Webcast & Conference Call Third Quarter FY 2015
1© 2014 | Earnings Webcast & Conference Call Third Quarter FY 2015 May 8, 2015 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 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 natu
Slide 3: Today's Agenda
3 • Opening Remarks Rich Daly, President and CEO • Third Quarter FY 2015 Financial Jim Young, CFO Results • Summary Rich Daly, President and CEO • Q&A Rich Daly, President and CEO Jim Young, CFO • Closing Remarks Rich Daly, President and CEO Today’s Agenda
Slide 4: Key Messages
4 Key Messages • Strong recurring revenue momentum through Q3 led by Net New Business • Strong Q3 and record YTD recurring revenue closed sales • Successful tuck-in acquisition strategy is accelerating growth and creating long term value • Returning capital to shareholders through dividends and shar
Slide 5: Financial Highlights
5 Financial Highlights • Recurring revenue momentum continues ▪ Q3 recurring fee revenues were up 5% primarily driven by Net New Business • Q3 Adjusted Diluted earnings per share (EPS) increased 7% to $0.47 from $0.44 (YTD up $0.01 to $1.09) • Q3 share repurchases of $109 million at an average price
Slide 6: Closed Sales Performance and Outlook
6 Closed Sales Performance and Outlook • Q3 recurring revenue closed sales were up 14% (YTD up 75%) ▪ Recurring revenue closed sales were $27M compared to $24M in the previous year ▪ Record YTD recurring revenue closed sales of $108M compared to $62M in the previous year • Exceptional client revenue
Slide 7: Acquisitions Update
7 Acquisitions Update • Completed the acquisition of the trade processing business of M&T Bank Corporation's Wilmington Trust Retirement and Institutional Services unit ▪ Closed in April; purchase price of $61M ▪ Opportunity to realize attractive synergies in combination • Acquired Direxxis LLC, a p
Slide 8: Growth Drivers as a % of Recurring Fee Revenues
8 3Q 3Q YTD FY15 FY15 FY15 Outlook (d) Growth Drivers as a % of Recurring Fee Revenues Closed Sales (Recurring) 5% 6% Client Losses (3)% (3)% Net New Business 2% 3% Internal Growth(a) 1% 1% Organic Growth 3% 4% Acquisitions 2% 1% Total Recurring Fee Revenue Growth 5% 5% 5-7% Growth Drivers as a % of
Slide 9: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO)
9 Investor Communication Solutions (ICS) 3Q14 3Q15 Versus Prior Year 3Q14 YTD 3Q15 YTD Versus Prior Year Recurring Fee Revenues $215 $228 6% $566 $620 10% Total Revenues $436 $466 7% $1,163 $1,264 9% Earnings before income taxes $57 $63 10% $118 $135 15% Pre-tax Margins 13.1% 13.5% 40 bps 10.1% 10.7
Slide 10: FY15 Outlook
10 FY15 Outlook As of 11/6/2014 2/5/2015 5/8/2015 Broadridge Financial Solutions, Inc. Recurring Fee Revenue Growth 5 - 7% 5 - 7% 5 - 7% Total Revenue Growth 4 - 6% 4 - 6% 4 - 6% EBIT Margins 17.4 - 17.8% 17.4 - 17.8% 17.4 - 17.8% Adjusted Pre-tax Margins 17.3 - 17.7% 17.3 - 17.7% 17.3 - 17.7% Tax R
Slide 11: Closing Summary
11 Closing Summary • Strong financial performance through Q3 • Strong Q3 and record year to date recurring revenue closed sales results reflect continued momentum • Reaffirming FY15 guidance • Confidence in our business is high, and we plan to execute on the multiple opportunities in front of us to
Slide 12: Q&A and Closing Comments
12 Q&A and Closing Comments There are no slides during this portion of the presentation
Slide 13: Appendix
Appendix Bi Broadridge
Slide 14: Revenues and Earnings by Segment
14 Revenues Earnings FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 Q3 Q3 Q3 YTD Q3 YTD Q3 Q3 Q3 YTD Q3 YTD $436 $466 $1,163 $1,264 ICS (c) $57 $63 $118 $135 6% 7% 7% 9% ◄ Growth % / Margin % ► 13.1% 13.5% 10.1% 10.7% $173 $178 $510 $515 GTO (c) $36 $34 $104 $92 6% 3% 7% 1% ◄ Growth % / Margin % ► 20.9% 18
Slide 15: Reconciliation of Non-GAAP to GAAP Measures
15 Reconciliation of Non-GAAP to GAAP Measures 3Q14 3Q15 YTD14 YTD15 FY15 Range (a) Low High Adjusted Diluted EPS (Non-GAAP) $0.44 $0.47 $1.08 $1.09 $2.42 $2.52 Acquisition Amortization and Other Costs, net of taxes (0.03) (0.04) (0.09) (0.11) (0.13) (0.13) Diluted EPS (GAAP) $0.41 $0.43 $0.99 $0.97
Slide 16: ICS Key Segment Revenue Stats
16 ICS Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions Fee Revenues (e) 3Q14 3Q15 YTD FY14 YTD FY15 Type Proxy Equities $ 37.9 $ 38.8 $ 88.3 $ 93.0 RC Stock Record Position Growth 7 % 12 % 3 % 8 % Pieces 30.6 32.0 72.1 76.4 Mutual Funds $ 9.5 $ 16.7 $ 36.0 $ 37.7 ED Pieces 12.1
Slide 17: GTO Key Segment Revenue Stats
17 GTO Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions 3Q14 3Q15 FY14 YTD FY15 YTD Type Equity Transaction-Based Equity Trades (a) $ 35.5 $ 35.1 $ 101.4 $ 101.9 RC Internal Trade Volume (Average Trades per Day in '000) 1,066 1,063 963 986 Internal Trade Growth 15 % 0 % 16% 2% Tr
Slide 18: Broadridge ICS Definitions
18 Broadridge ICS Definitions Proxy Equities - Refers to the proxy services we provide in connection with annual stockholder meetings for publicly traded corporate issuers. Annual meetings of public companies include shares held in "street name" (meaning that they are held of record by brokers or ba
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