Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 2009 Earnings Presentation
22 slides from Broadridge Financial Solutions's earnings presentation, May 11, 2009
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Third Quarter Fiscal Year 2009 May 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 Rich Daly, CEO Third Quarter FY 2009 Results and Dan Sheldon, CFO Cash Flow Fiscal Year 2009 Guidance Summary Rich Daly, CEO Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relations Closing Remarks Rich Daly, CEO 2
Slide 4: Opening Remarks Key Topics
Opening Remarks Key Topics: • Financial results for the third quarter and fiscal year 2009 financial guidance • General update of current market dynamics and impact on Broadridge • A review of closed sales performance and sales pipeline 3
Slide 5: Opening Remarks – Key Topics: Third Quarter FY09 Financial Results
Opening Remarks – Key Topics Third Quarter FY09 Financial Results • GAAP and Non-GAAP Earnings Per Share (EPS) performance for the quarter were better than our expectations as a result of the benefit of a state tax credit and lower expenses • Fee revenues for all three operating segments continued t
Slide 6: Opening Remarks – General Market Conditions: Headwinds
Opening Remarks – Key Topics General Market Conditions Headwinds: • Headwinds and uncertainty generally remain in the financial services market and, as anticipated, headwinds have created revenue slow down • As expected, event-driven mutual fund proxy activity declined and trade revenue growth has s
Slide 7: Opening Remarks – General Market Conditions: Tailwinds
Opening Remarks – Key Topics General Market Conditions (cont’d) Tailwinds: • The Investor Communications business, which represents over 70% of Broadridge’s annual revenue and earnings: Continued to see year-to-date recurring fee revenues growth of 7% and expecting growth to continue, despite diffic
Slide 8: Opening Remarks – Sales Performance Overview
Opening Remarks – Key Topics General Market Conditions (cont’d) Tailwinds (cont’d) • Sales Performance Overview Quarterly closed sales of $30M were lower than expected as decision timelines for opportunities slipped and were pushed out of the quarter Year-to-date closed sales of $110M are up 5% over
Slide 9: Broadridge Results – Q3 & YTD FY 2009
Broadridge Results –Q3 & YTD FY 2009 Key Highlights: Q3 - Revenue 4% to $481M and YTD flat at $1,413M (Operating Segments without Distribution Revenues 2% for Q3 and 4% YTD) • Sales contributed +4% (YTD = +4%) • Losses reduced growth by -2% (YTD = -1%) • Internal Growth -1% (YTD = +1%) • Event-drive
Slide 10: Segment Results – Investor Communication Solutions
Segment Results – Investor Communication Solutions 3Q09 3Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $335 $944 $1,544 $1,551 Growth Rate -2% 0% -2% -2% Fee Revenues $161 $453 $778 $789 Growth Rate 3% 2% 1% 3% Recurring (RC) 5% 7% 7% 9% Event-driven (ED) -2% -7% -11% -10% Distr
Slide 11: Segment Results – Securities Processing Solutions
Segment Results – Securities Processing Solutions 3Q09 3Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $130 $403 $527 $530 Growth Rate 1% 6% 2% 3% Margin 26.2% 27.7% 25.3% 25.9% Margin Basis Points (bps) Change 170 bps 110 bps 140 bps 80 bps Q3 FY09 Key Highlights: Revenues (Q3 1
Slide 12: Segment Results – Clearing and Outsourcing Solutions
Segment Results – Clearing and Outsourcing Solutions 3Q09 3Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $24 $76 $98 $100 Growth Rate 3% 4% 3% 4% Net Interest Income $2 $11 $12 $13 Other Clearing Revenue $16 $46 $62 $63 Outsourcing Revenue $6 $19 $24 $24 Pre-tax Loss -$2 -$7 -$1
Slide 13: Segment Results – Other & Foreign Exchange (FX)
Segment Results – Other & Foreign Exchange (FX) 3Q09 3Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Other Fees Revenues $1 $1 $1 $1 Other Fees Margin $1 $1 $1 $1 FX Revenues -$8 -$11 -$23 -$23 FX P&L Margin -$2 -$2 -$5 -$5 Other Interest Expense -$3 -$3 -$6 -$6 Corporate Expenses & Inves
Slide 14: Fiscal Year 2009 Grow-Over Discussion
Fiscal Year 2009 Grow-Over Discussion FY08 Grow-Overs($ in millions) Q1 Q2 Q3 Q4 FY09 Actual Actual Actual Forecast Forecast Other- Corporate/Investments Termination Fees (2) (5) 1 (1) (7) Corporate Build (4) (4) (1) 0 (9) Investments (3) (3) (3) 0 (9) Special Stock Option Grants 0 (2) 3 3 4 Sub-tot
Slide 15: Broadridge Cash Flow – Q3 FY 2009 and FY 2009 Forecast
Broadridge Cash Flow – Q3 FY 2009 and FY 2009 Forecast Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP Unaudited (In millions) Nine Months Ended FY09 Range March 2009 Low High Ridge Clearing All Other All Other Processing Financing Processing Broadridge Calculation of F
Slide 16: Broadridge - FY 2009 Financial Guidance Summary
Broadridge - FY 2009 Financial Guidance Summary Revenue decline in a range of -3% to flat Growth is anticipated to be at the mid-point to lower end of range Operating segment revenue growth of -1% to flat (2% to 3% fee only) Earnings before interest and taxes margin of 16.0% - 16.9% Diluted EPS in t
Slide 17: Summary
Summary Third quarter earnings per share results were better than expected The Investor Communications business continued to be resilient as recurring revenues continued to show growth Our sales pipeline remains robust with promising large opportunities for all segments Our investments in the busine
Slide 18: Q&A
Q&A There are no slides during this portion of the presentation 17
Slide 19: Closing Comments
Closing Comments There are no slides during this portion of the presentation 18
Slide 20: Appendix
Ce ee Appendix Appendix 19 Ba Broadridge
Slide 21: Segments – FY 2009 Financial Guidance Summary
Segments – FY 2009 Financial Guidance Summary Investor Communication: Revenues -2% Margins 16.5% - 17.1% Sales $85M - $95M Securities Processing: Revenues 2% - 3% Margins 25.3% - 25.9% Clearing and Outsourcing: Revenues 3% - 4% Operating losses at $12M - $11M Sales Plan $75M - $85M for the combined
Slide 22: 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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