Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2008 Earnings Presentation
18 slides from Broadridge Financial Solutions's earnings presentation, Nov 7, 2007
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call First Quarter Fiscal Year 2008 November 7, 2007
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 Rich Daly, CEO st 1 Quarter Fiscal Year 2008 Results Dan Sheldon, CFO st Cash Flow - 1 Quarter Fiscal Year 2008 Dan Sheldon, CFO Fiscal Year 2008 Guidance Update Rich Daly, CEO Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relation
Slide 4: Opening Remarks – Outline
Opening Remarks – Outline Key Topics: Financial results for the first quarter • Impact of internal growth driven by market activity & one-time activity • Margin expansion • Timing of investment ramp up Market conditions during the quarter • Financial performance in context with market • Impact on gu
Slide 5: Broadridge – 1Q Fiscal Year 2008 Results
Broadridge – 1Q Fiscal Year 2008 Results Revenues 3% to $451M (w/o distribution fees 7%) Fiscal 2008 revenue growth building blocks: • Internal Growth contributed 4.0% • Sales contributed 2.0% • Losses reduced growth by 4.5% • Other/FX contributed 1.5% Diluted Earnings Per Share, excluding 1-time tr
Slide 6: Segments – 1Q Fiscal Year 2008 Results
Segments – 1Q Fiscal Year 2008 Results Investor Communication Revenues 3% to $299M primarily due to previously announced client loss – Non-GAAP • Event-driven revenues flat • Internal growth flat (fee revenue growth 4%, offset by lower distribution fees) – Stock Record Growth –Equity Proxy 1% and Mu
Slide 7: Segments – 1Q Fiscal Year 2008 Results
Segments – 1Q Fiscal Year 2008 Results Clearing and Outsourcing Revenues 13% to $25M • Sales contributed 14% to growth • Previously announced client loss reduced growth by 10% • Internal growth contributed 9% to growth – Trades Per Day over 15% to 21K • Average Margin Debit Balances 37% to $870M Ope
Slide 8: Broadridge Cash Flow – 1Q Fiscal Year 2008
Broadridge Cash Flow – 1Q Fiscal Year 2008 Broadridge Financial Solutions, Inc. Calculation of Free Cash Flows -Non-GAAP Unaudited (In millions) Three Months Ended September 30, Calculation of Free Cash Flows (Non-GAAP) : 2007 2006 Net earnings, as reported $ 36 $ 29 Depreciation and amortization 12
Slide 9: Fiscal Year 2008 Guidance & Summary
Fiscal Year 2008 Guidance & Summary Very solid start to fiscal year driven by Internal growth and Event- driven activities Increased our full year guidance: EPS before one-time transition expenses from a range of $1.17 - $1.25, to a new range of $1.30 - $1.40 EPS after one-times transition expenses
Slide 10: Q&A
Q&A There are no slides during this portion of the presentation 9
Slide 11: Closing Comments
Closing Comments There are no slides during this portion of the presentation 10
Slide 12: Appendix
Ce ee Appendix Appendix a ea Broadridge’
Slide 13: Broadridge - Fiscal Year 2008 Financial Guidance
Broadridge - Fiscal Year 2008 Financial Guidance Revenue growth of 1% - 4% Diluted Earnings Per Share Before one-time transition expenses of $1.30 - $1.40 After one-time transition expenses of $1.25 - $1.35 Earnings before interest and taxes margins (excluding one-time transition expenses) of 15.5%
Slide 14: Segments – Fiscal Year 2008 Financial Guidance
Segments – Fiscal Year 2008 Financial Guidance Investor Communications : Revenues 1% to 4% Margins 15.1% to 15.4% Securities Processing : Revenues (3%) to Flat Margins 24.3% to 26.0% Clearing and Outsourcing: Revenues 10% to 13% Operating profits near breakeven with $7M improvement over prior year 1
Slide 15: GAAP to Non-GAAP Earnings Reconciliation
GAAP to Non-GAAP Earnings Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures Earnings, Margin and Per Share Reconcilation (In millions, except per share and margin data) (Unaudited) Three months ended September 30, 2007 Three months ended September 30, 20
Slide 16: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures Free Cash Flows Reconciliation (In millions) (Unaudited) Net Cash Flows Excluding Less: Capital Provided by Securities Clearing Expenditures Free Operating Activities Activ
Slide 17: Intersegment Transfer Pricing Reconciliation
Intersegment Transfer Pricing Reconciliation Broadridge Financial Solutions, Inc. Intersegment Transfer Price Reconciliation (In millions, except margin data) (Unaudited) Three months ended September 30, 2007 2006 Investor Communication Solutions Net revenue as reported $ 299.1 $ 308.0 Transfer pric
Slide 18: Use of Materials Contained Herein
Use of Materials Contained Herein The information contained in this presentation is being provided for your convenience and information only. This information is accurate as of the date of its initial presentation. If you plan to use this information for any purpose, verification of its continued ac
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