Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Q4 FY2014 Earnings Presentation

22 slides from Broadridge Financial Solutions's earnings presentation, Aug 8, 2014

  1. Slide 1: Earnings Webcast & Conference Call

    Exhibit 99.2 August 7, 2014 Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2014 Correction: Revised to correct the fourth quarter fiscal year 2014 Non-GAAP diluted EPS amount to $1.16 from $1.17. This correction does not change any other amounts presented.

  2. 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

  3. Slide 3: Today's Agenda

    Today’s Agenda Opening Remarks Rich Daly, President and CEO Fourth Quarter and Fiscal Year 2014 Jim Young, CFO Highlights and Segment Results Summary Rich Daly, President and CEO Q&A Rich Daly, President and CEO Jim Young, CFO Closing Remarks Rich Daly, President and CEO © 2014 | 2

  4. Slide 4: Key Messages

    Key Messages Strong execution in FY14 generated record results and providing momentum into FY15 Continued progress against our growth strategy FY15 guidance reflects continued successful execution on the activities within our control Remain committed to capital stewardship program Increased confiden

  5. Slide 5: Fiscal Year 2014 Highlights

    Fiscal Year 2014 Highlights Strong revenue growth Recurring revenues were up 9% primarily due to Net New Business (recurring revenue closed sales less client losses) and strong market-based activities Record diluted Earnings Per Share (EPS) Non-GAAP diluted EPS of $2.25 was up 20%; GAAP diluted EPS

  6. Slide 6: Fiscal Year 2015 Guidance

    Fiscal Year 2015 Guidance Recurring revenue growth of 5-7% (total revenues 4-6%) Market-based activities not assumed to contribute at the same levels as FY14 Continued exceptional client revenue retention rate of 98% Non-GAAP diluted EPS of $2.42-2.52 (8-12% growth) GAAP EPS of $2.29-2.39 (8-13% gro

  7. Slide 7: Key Financial Drivers

    Key Financial Drivers 4Q Actual FY15 FY14 FY14 Range Growth Drivers as a % of Recurring Revenue Closed Sales (Recurring) 6% 7% 6-7% Client Losses (3%) (3%) (2%) Net New Business 3% 4% 4-5% (a) Internal Growth 3% 4% 0-1% Organic Growth 6% 8% 4-6% Acquisitions 1% 1% 1% Total Recurring Revenue Growth 7

  8. Slide 8: 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) FY14: $947M / 11% $1,867M / 6% $336M / 11% 18.0% / 80 bps FY15: $1,007 to $1,030 M / 6 to 9% $1,963 to $1,996M / 5 to 7%$368 to $380M / 10 to 13%18.7

  9. Slide 9: Segment Results & Forecast – Securities Processing Solutions

    Segment Results & Forecast – Securities Processing Solutions Revenue/Growth EBIT/Growth(Non-GAAP) Margin/Growth(Non-GAAP) FY14: $695M / 5% $119M / 40% 17.1% / 420 bps FY15: $710M to 722M / 2 to 4% $122M to 136M / 2 to 14% 17.2 to 18.8% / 10 to 170 bps FY14 revenues up 5% with strong margin expansion

  10. Slide 10: Closing Summary

    Closing Summary Record financial results providing strong momentum for FY15 with both segments contributing to growth Guidance reflects the activities within our control with a focus on growing recurring revenues from Net New Business Continued investments in strategic growth opportunities Remain co

  11. Slide 11: Q&A and Closing Comments

    Q&A and Closing Comments There are no slides during this portion of the presentation © 2014 | 10

  12. Slide 12: Appendix

    Appendix ©2014 | 11 Bg Broadridge

  13. Slide 13: Segment Results & Forecast – Other & Foreign Exchange (FX)

    Segment Results & Forecast – Other & Foreign Exchange (FX) FY14 FY15 Range Actual Low High Corporate Expenses $(50)M $(42)M $(49)M Interest Expense, net $(25)M $(26)M $(26)M FX -P&L -Revenue $(4)M $(7)M $(7)M - EBIT $16M $16M $16M - Transaction Activity $0M $0M $0M CorporateExpenses: FY14resultswere

  14. Slide 14: Broadridge Q4 and Full Year FY14

    Broadridge Q4 and Full Year FY14 Revenue Earnings FY13 FY14 FY13 FY14 FY13 FY14 FY13 FY14 Q4 Q4 Full Year Full Year Q4 Q4 Full Year Full Year $690 $715 $1,760 $1,867 ICS $208 $219 $302 $336 9% 4% 8% 6% Growth % / Margin % 30.1% 30.6% 17.2% 18.0% $173 $174 $661 $695 SPS $27 $15 $85 $119 4% 1% 1% 5% G

  15. Slide 15: Broadridge FY15 Guidance

    Broadridge FY15 Guidance Revenue Earnings FY14 FY15 Range FY14 FY15 Range Actual Low High ($ in millions) Actual Low High $1,867 $1,963 $1,996 ICS $336 $368 $380 6% 5% 7% Growth % / Margin % 18.0% 18.7% 19.0% $695 $710 $722 SPS $119 $122 $136 5% 2% 4% Growth % / Margin % 17.1% 17.2% 18.8% $2,562 $2,

  16. Slide 16: Cash Flows FY14 Results and FY15 Guidance

    Cash Flows FY14 Results and FY15 Guidance FreeCashFlows- Non-GAAP Unaudited ($ millions) Fiscal Year Ended FY15 Range (a) Round June 2014 Low High Free Cash Flows (Non-GAAP) : Round Net earnings from operations (GAAP) $ 263.0 $ 263 $ 285 $ 297 Depreciation and amortization (includes other LT assets)

  17. Slide 17: Recurring Revenue Closed Sales to Revenue Contribution

    Recurring Revenue Closed Sales to Revenue Contribution (a) (b) ($ in millions) Closed Sales Revenue Contribution Backlog Forecast Forecast Forecast FY15 FY15 FY15 ICS ~$70-90 ~$55-65 ~$100-120 ~Contribution to recurring revenue growth 6-7% SPS ~$40-60 ~$45-55 ~$60-70 ~Contribution to recurring reven

  18. Slide 18: Revenues and Closed Sales FY09-FY14

    Revenues and Closed Sales FY09-FY14 ($ in millions) CAGR FY15 Recurring Fee Revenues FY09 FY10 FY11 FY12 FY13 FY14 FY09-FY14 Range ICS $ 594 $ 632 $ 720 $ 798 $ 850 $ 947 10% $1,007-1,030 Growth 5% 6% 14% 11% 7% 11% 6-9% SPS $ 559 $ 536 $ 594 $ 655 $ 661 $ 695 4% $710-722 Growth 5% -4% 11% 10% 1% 5%

  19. Slide 19: Reconciliation of Non-GAAP to GAAP Measures

    Reconciliation of Non-GAAP to GAAP Measures Reconciliation of EPS 4Q13 4Q14 FY13 FY14 FY15 Range Actual Actual Actual Actual Low High Diluted EPS (Non-GAAP) $1.15 $1.16 $1.88 $2.25 $2.42 $2.52 Acquisition Amortization and Other Costs, net of taxes ($0.04) ($0.04) ($0.12) ($0.13) ($0.13) ($0.13) Rest

  20. Slide 20: ICS Key Segment Revenue Stats

    ICS Key Segment Revenue Stats Fee Revenues 4Q13 4Q14 FY13 FY14 Type RC= Recurring ED= Event-Driven Proxy Equities $ 211.8 $ 225.3 $ 296.6 $ 313.6 RC In millions Stock Record Position Growth 2% 10% 2% 8% Pieces 219.1 242.6 287.3 314.7 0.6 Mutual Funds $ 20.8 $ 20.8 $ 43.5 $ 56.8 ED Pieces 29.9 29.6 6

  21. Slide 21: SPS Key Segment Revenue Stats

    SPS Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions 4Q13 4Q14 FY13 FY14 Type Equity Transaction-Based (a)Equity Trades $ 31.6 $ 31.7 $ 126.5 $ 133.1 RC Internal Trade Volume 896 909 844 946 Internal Trade Growth 6% 1% -6% 12% Trade Volume (Average Trades per Day in '000) 944 921

  22. Slide 22: Broadridge ICS Definitions

    Broadridge ICS Definitions Proxy Equities R- efers to the proxy services we provide in connection with annual stockholder meetings for publicly traded corporate issuers. Annual meetings of public companiesinclude shares held in "street name" (meaningthat they are held of record by brokersor banks,wh

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