26 slides from Broadridge Financial Solutions's earnings presentation, Aug 8, 2013
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2013 © 2013 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. August 8, 2013
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 Other Rich Daly, CEO Key Topics Fourth Quarter and Fiscal Year 2013 Dan Sheldon, CFO Highlights and Segment Results Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Closing Remarks Rich Daly, CEO 2
Slide 4: Key Topics
Opening Remarks Key Topics: Financial Highlights Closed Sales Performance Key Updates Fiscal Year 2014 Guidance 3
Slide 5: Fiscal Year 2013 Financial Highlights
Fiscal Year 2013 Financial Highlights Solid revenue growth Total revenues and recurring revenues were up 6% and 4%, respectively • Primarily due to net new business (closed sales less client losses) • Event-driven fees increased ~$24M primarily from MF proxy and MF supplemental prospectus activities
Slide 6: Closed Sales Performance
Closed Sales Performance Recurring revenue closed sales were up slightly to a record high of ~$121M Large transactions with revenues of $5M or greater were ~$18M Transactions with revenues less than $5M were ~$103M and continued with good momentum at the end of the year Pipeline growth Strong across
Slide 7: Key Updates
Key Updates Accenture strategic alliance Jointly launched Eurasia post-trade processing platform Powered by Broadridge technology Signed first client - Societe Generale Corporate & Investment Banking Initially targeting 50 leading financial institutions Go-to-market strategy is backed by Accenture’s
Slide 8: Fiscal Year 2014 Guidance
Fiscal Year 2014 Guidance Recurring revenue growth 5-7% Non-GAAP diluted earnings per share from continuing operations of $2.00-2.10 (GAAP $1.89-1.99) Free cash flow of ~$250-300M Increasing annual dividend by ~17% to $0.84 per share Increased payout six consecutive years since spin CAGR of ~23% sin
Slide 9: Revenue Growth Driven By Recurring Fees
Revenue Growth Driven By Recurring Fees $ amount in millions 3% 6% Total Revenue Growth (6%) $146 18% $156 Event-Driven $132 Fee $740 $755 (2%) $704 7% Distribution FY13 FY14 Actual Forecast Closed Sales 6% 7-8% Client Losses (1)% (3)% Recurring Fee $1,454 4% $1,511 6% $1,599 Internal Growth (1)% 0-
Slide 10: Segment Results & Forecast – Investor Communication Solutions
Segment Results & Forecast – Investor Communication Solutions Recurring/Growth (Non-GAAP) Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) FY13: $850M / 7% $1,760M / 8% $302M / 24% 17.2% / 230 bps FY14: $903 to $921M / 6 to 8% $1,785 to $1,812M / 1 to 3% $316 to $328M / 5 to 9% 17.7% t
Slide 11: Segment Results & Forecast – Securities Processing Solutions
Segment Results & Forecast – Securities Processing Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) FY13: $661M / +1% $85M / (6)% 12.9% / (100) bps FY14: $678M to 695M / 3 to 5% $100M to 117M / 18 to 38% 14.8 to 16.8% / 190 to 390 bps FY 2013 Full year revenue up 1% with net
Slide 12: Summary
Summary Record operating results for fiscal year 2013 and positive outlook Recurring fee revenue continues to be strong Record closed sales with robust and growing pipeline Encouraging equity volume trends and improved event-driven revenues Strong client revenue retention rate of ~99% NYSE Proxy Fee
Slide 13: Q&A
Q&A There are no slides during this portion of the presentation 12
Slide 14: Closing Comments
Closing Comments There are no slides during this portion of the presentation 13
Slide 15: Appendix
14 Appendix Bg Broadridge
Slide 16: Segment Results & Forecast – Other & Foreign Exchange (FX)
Segment Results & Forecast – Other & Foreign Exchange (FX) FY14 Range FY13 Low High Corporate Expenses $(44)M $(39)M $(47)M Interest Expense, net $(15)M $(26)M $(28)M FX - P&L - Revenue $10M $10M $10M - EBIT $16M $15M $15M - Transaction Activity $(1)M $(1)M $(1)M Restructuring Charges $(20)M $0M $0M
Slide 17: Key Financial Drivers and Free Cash Flow
Key Financial Drivers and Free Cash Flow Historical CAGR Actual FY14 (FY08-FY13) FY13 Range 3% Total Revenue Growth 6% 2-4% 3% Closed Sales (Recurring) 4% 4-5% (1%) Client Losses (1%) (2%) 2% Net New Business 3% 2-3% 0% Internal Growth (a) (0%) 0-1% 2% Acquisitions 0% 0% 4% Total Recurring 3% 2-4% (
Slide 18: Broadridge FY13 Q4 and FY13 from Continuing Operations
Broadridge FY13 Q4 and FY13 from Continuing Operations Revenue FY12 FY13 FY12 FY13 Q4 Q4 Full Year Full Year $630 $690 $1,634 $1,760 2% 9% 5% 8% $167 $173 $655 $661 10% 4% 10% 1% $797 $863 $2,290 $2,421 4% 8% 6% 6% $0 $0 $0 $0 $3 $2 $13 $10 $800 $865 $2,304 $2,431 3% 8% 6% 6% (a) FY12 Q4 excludes IB
Slide 19: Broadridge FY14 Guidance from Continuing Operations
Broadridge FY14 Guidance from Continuing Operations (a) FY13 excludes Restructuring and Impairment Charges, net of $20M (after tax $13M, or $0.10 EPS impact). (b) Includes impacts of FX P&L and FX Transaction Activity (c) Represents amortization charges associated with intangible asset values as wel
Slide 20: Cash Flow – FY13 Results and FY14 Forecast
Cash Flow –FY13 Results and FY14 Forecast Free Cash Flow - Non-GAAP Unaudited ($ millions) Year Ended FY14 Range (a) June 2013 Low High Free Cash Flow (Non-GAAP) : Net earnings from continuing operations (GAAP) $ 212 $ 233 $ 246 Depreciation and amortization (includes other LT assets) 93 100 110 Sto
Slide 21: Recurring Closed Sales to Revenue Contribution
Recurring Closed Sales to Revenue Contribution ($ in millions) Closed Sales Revenue Contribution (a) Backlog (b) Forecast Forecast Forecast FY14 FY14 FY14 ICS (less than $5M deals) $60-70 ~$50-60 ~$50-60 ~Contribution to revenue growth 2-3% SPS (less than $5M deals) $30-40 ~$50-60 ~$80-100 ~Contribu
Slide 22: Revenues and Closed Sales FY07-FY13
Revenues and Closed Sales FY07-FY13 ($ in millions) CAGR Forecast Recurring Fee Revenues FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY07-FY13 FY14 ICS $ 529 $ 567 $ 594 $ 632 $ 720 $ 798 $ 850 8% $903-921 Growth 7% 5% 6% 14% 11% 7% 6-8% SPS $ 527 $ 534 $ 559 $ 536 $ 594 $ 655 $ 661 4% $678-695 Growth 1% 5%
Slide 23: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures 22
Slide 24: ICS Key Segment Revenue Stats
ICS Key Segment Revenue Stats Fee Revenues 4Q12 4Q13 FY12 FY13 Type RC= Recurring ED= Event-Driven Proxy Equities $ 202.7 $ 211.8 $ 282.8 $ 296.6 RC In millions Stock Record Position Growth 1% 2% 1% 2% Pieces 214.4 219.1 280.5 287.3 Mutual Funds $ 8.9 $ 20.8 $ 28.2 $ 43.5 ED Pieces 12.0 29.9 41.7 66
Slide 25: SPS and Outsourcing Key Segment Revenue Stats
SPS and Outsourcing Key Segment Revenue Stats RC= Recurring ED= Event-Driven 4Q12 4Q13 FY12 FY13 Type In millions Equity Transaction-Based Equity Trades $ 32.4 $ 31.6 $ 137.1 $ 126.5 RC Internal Trade Volume 883 936 948 894 Internal Trade Growth -7% 6% -1% -6% Trade Volume (Average Trades per Day in
Slide 26: Broadridge ICS Definitions
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 banks