Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2011 Earnings Presentation
27 slides from Broadridge Financial Solutions's earnings presentation, Nov 4, 2010
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call First Quarter Fiscal Year 2011 © 2010 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. November 4, 2010
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 Key Topics Rich Daly, CEO First Quarter Fiscal Year 2011 Dan Sheldon, CFO Results and Full Year Guidance Summary and Closing Comments Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Rick Rodick, VP Investor Relations Closing Remarks Rich Daly, CEO 2
Slide 4: Opening Remarks Key Topics
Opening Remarks Key Topics: Financial performance Closed sales performance Key strategic initiatives update Regulatory update 3
Slide 5: Financial Performance
Financial Performance Revenues for the quarter were down 4%, but in line with the low end of our range Driven primarily by lower event-driven revenues, partially offset by revenues from sales less losses (“net new business”) and acquisitions Diluted earnings per share from continuing operations were
Slide 6: Closed Sales Performance
Closed Sales Performance Closed sales for the quarter were $24M Recurring revenue sales increased 94% to $17M • SPS sales more than doubled • ICS sales were up almost 30% Event-driven sales were down from last year, as expected Sales pipeline continues to have very good momentum and contains large o
Slide 7: Key Strategic Initiatives Update
Key Strategic Initiatives Update All major strategic initiatives are on track Morgan Stanley Smith Barney (“MSSB”) Progressing significantly into the two-year transition Excellent quality survey scores On track to achieve revenue and profitability goals during fiscal year 2012 Penson/Outsourcing Imp
Slide 8: Regulatory Update
Regulatory Update The Securities and Exchange Commission (“SEC”) issued its Concept Release on the U.S. Proxy System on July 14, 2010 Broadridge submitted comments on the following topics (1): Vote accuracy • Accuracy is critical to the U.S. proxy system • Vote accuracy, process integrity and transp
Slide 9: Revenue Drivers - Q1 Results and Forecast FY11
Revenue Drivers- Q1 Results and Forecast FY11 (Continuing Operations) Actual Actual Forecast 1Q11 FY10 FY11 Total Revenue Growth (4)% 7% 1-4% Sales (Recurring) 4% 4% 3-4% Client Losses (2)% (2)% (1)% Net New Business 2% 2% 2-3% (a) Internal Growth 0% (2)% 0-1% (b) Event-Driven (5)% 4% (5)-(4)% Distr
Slide 10: Segment Results & Forecast – Investor Communication Solutions
Segment Results & Forecast – Investor Communication Solutions Revenue/Growth (Non-GAAP) Margin/Growth EBIT/Growth (Non-GAAP) Q1: $280M/ (10)% $6M/ (73)% 2.3%/ (530) bps FY11: $1,641 to 1,682M / (2) to +1%$271 to 284M / (1) to +4% 16.5 to 16.9% / +20 to +60 bps As expected, total revenue was down for
Slide 11: Segment Results & Forecast – Securities Processing Solutions
Segment Results & Forecast – Securities Processing Solutions Revenue/Growth (Non-GAAP) EBIT/Growth (Non-GAAP) Margin/Growth Q1: $142M / +9% $21M / (18)% 15% / (500) bps FY11: $589 to 615M / +10 to 15% $80 to 96M / (19) to (3)% 13.5 to 15.6%/ (500) to (290) bps Q1 revenues in line with expectations.
Slide 12: FY11 Continuing Operations Financial Guidance Summary
Broadridge - FY11 Continuing Operations Financial Guidance Summary Revenue growth in the range of 1-4% Closed sales forecast for the year at $160-215M (Recurring $110-150M) Non-GAAP Earnings before interest and taxes margin of 14.6-15.2% Diluted Earnings Per Share: GAAP EPS (continuing operations) i
Slide 13: Summary
Summary The business is staying the course in this difficult market and is charting a path to new clients and product opportunities Across our product set we have very good momentum, both in new product generation and successful sales execution Reaffirmed our full year guidance for earnings and clos
Slide 14: Q&A
Q&A There are no slides during this portion of the presentation 13
Slide 15: Closing Comments
Closing Comments There are no slides during this portion of the presentation 14
Slide 16: Appendix
Ce ee Appendix Appendix 15 Ba Broadridge
Slide 17: Segment Results & Forecast – Other & Foreign Exchange (FX)
Segment Results & Forecast – Other & Foreign Exchange (FX) 1Q11 FY11 Low High Interest Expense $(2)M $(11)M $(11)M Corp. Expenses & Investments $(6)M $(28)M $(35)M FX - P&L - Revenue $0M $7M $11M - EBIT $1M $3M $6M - Transaction Activity $0M $0M $0M FY11: Corporate Expenses and Investments: Full yea
Slide 18: Broadridge 1Q from Continuing Operations
Broadridge 1Q from Continuing Operations Revenue ($ in millions) EBIT FY10 FY11 FY10 FY11 Q1 Q1 Q1 Q1 $310 $280 ICS $23 $6 -1% -10% Growth % / Margin % 7.6% 2.3% $130 $142 SPS $26 $21 -7% 9% Growth % / Margin % 19.7% 14.7% $440 $421 Total Segments $49 $27 -3% -4% 11.1% 6.5% Growth % / Margin % $0 $0
Slide 19: Broadridge FY11 Guidance from Continuing Operations
Broadridge FY11 Guidance from Continuing Operations Revenue ($ in millions) EBIT FY10 FY11 Range FY10 FY11 Range Actual Low High Actual Low High $1,670 $1,641 $1,682 ICS $273 $271 $284 9% -2% 1% Growth % / Margin % 16.3% 16.5% 16.9% $536 $589 $615 SPS $99 $80 $96 -4% 10% 15% Growth % / Margin % 18.5
Slide 20: Cash Flow – 1Q11 Results and FY11 Forecast
Cash Flow – 1Q11 Results and FY11 Forecast Unaudited (In millions) Three Months Ended FY11 Range (a) September 2010 Low High Free Cash Flow (Non-GAAP) : Net earnings from continuing operations per GAAP $ 13 $ 201 $ 212 Depreciation and amortization (includes other LT assets) 16 65 75 Stock-based com
Slide 21: Closed Sales to Revenue Contribution
Closed Sales to Revenue Contribution ($ in millions) Forecast Closed Sales Stats: Recurring FY09 FY10 FY11 Recurring ICS $55 $80 $35-50 • Both ICS and SPS trending toward ~ Revenue Contribution Year1-3 55% 35% 10% 50% 40% 10% 35%40%25% longer revenue recognition cycle • Larger strategic deals could
Slide 22: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures EBIT Reconciliation 1Q10 1Q11 FY10 FY11 Range (a) ($ in millions) Actual Actual Actual Low High EBIT (Non-GAAP)* $45 $23 $352 $327 $350 Margin % 10.3% 5.5% 17.0% 14.6% 15.2% Interest & Other ($3) ($2) ($0) ($11) ($11) Total EBT (GAAP) $43 $21 $342 $316 $33
Slide 23: FY11 Grow-over
FY11 Grow-over ($ in millions, except for EPS) 1Q11 Actual & FY11 Forecast FY11 Strategic Revenue EBIT MSSB and Penson are expected to Penson $31 ($9) be accretive in FY12 and FY13 ~ Actual Q1 & Forecast Q2/3/4 Distribution $5/6/9/11 $(4) / (4) /(1) /1 driven by revenue growth and scale MSSB $23 $3
Slide 24: ICS Key Segment Revenue Stats
ICS Key Segment Revenue Stats $ in millions RC= Recurring ED= Event-Driven (1) Other Recurring Fee Revenue includes NewRiver, StockTrans, Access Data and Tax Reporting (2) Other event-driven includes 2.2M pieces for 1Q10 and 2.0M for 1Q11, primarily related to corporate actions. Note: Certain prior
Slide 25: SPS and Outsourcing Key Segment Revenue Stats
SPS and Outsourcing Key Segment Revenue Stats $ in millions 1Q10 1Q11 Type RC= Recurring ED= Event-Driven Equity Transaction-Based Equity Trades $ 58.9 $ 55.1 RC (1) Internal Trade Volume 1,469 1,423 Internal Trade Growth 0% -3% (2) Trade Volume (Average Trades per Day in '000) 1,485 1,437 Non-Trans
Slide 26: Broadridge ICS Definitions
Broadridge ICS Definitions 25
Slide 27: 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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