Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 FY2015 Earnings Presentation
18 slides from Broadridge Financial Solutions's earnings presentation, Feb 5, 2015
Slide 1: Earnings Webcast & Conference Call Second Quarter FY 2015
1© 2014 | Earnings Webcast & Conference Call Second Quarter FY 2015 February 5, 2015 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 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 natu
Slide 3: Today's Agenda
3 • Opening Remarks Rich Daly, President and CEO • Second Quarter FY 2015 Financial Jim Young, CFO Results • Summary Rich Daly, President and CEO • Q&A Rich Daly, President and CEO Jim Young, CFO • Closing Remarks Rich Daly, President and CEO Today’s Agenda
Slide 4: Key Messages
4 Key Messages • Strong recurring revenue momentum through Q2 led by Net New Business • Recurring revenue closed sales record for Q2 • Executing on our tuck-in acquisition strategy • Reaffirming fiscal year 2015 guidance • Full-year expected results aligned with three-year objectives provided at Inv
Slide 5: Financial Highlights
5 Financial Highlights • Recurring revenue momentum continues ▪ Q2 recurring fee revenues were up 7% ▪ Primarily driven by Net New Business • Q2 Adjusted Diluted earnings per share (EPS) of $0.32 were up 28% (YTD down 3%) • Reaffirming full year 2015 guidance ▪ Recurring fee revenue growth of 5-7% (
Slide 6: Closed Sales Performance
6 Closed Sales Performance • Record Q2 recurring revenue closed sales were up 111% (YTD up 112%) ▪ Recurring revenue closed sales were $49M compared to $23M in the previous year (YTD $81M compared to $38M) • Signed deal with Scottrade to provide both trade processing and client communication solutio
Slide 7: Business Highlights - FY15 Acquisitions
7 Business Highlights- FY15 Acquisitions • Trade processing business of M&T Bank Corporation's Wilmington Trust Retirement and Institutional Services unit ▪ Announced in January, expected to close late in Q3 FY15; purchase price in historical tuck-in range ▪ Expected to add additional scale to our s
Slide 8: Growth Drivers as a % of Recurring Fee Revenues
8 2Q 2Q YTD FY15 FY15 FY15 Outlook (d) Growth Drivers as a % of Recurring Fee Revenues Closed Sales (Recurring) 7% 6% Client Losses (3)% (3)% Net New Business 4% 3% Internal Growth(a) 2% 1% Organic Growth 6% 4% Acquisitions 1% 2% Total Recurring Fee Revenue Growth 7% 6% 5-7% Growth Drivers as a % of
Slide 9: Investor Communication Solutions (ICS) and GTO segment results
9 Investor Communication Solutions (ICS) 2Q14 2Q15 Versus Prior Year 2Q14 YTD 2Q15 YTD Versus Prior Year Recurring Fee Revenues $173 $196 13% $351 $391 11% Total Revenues $349 $404 16% $728 $798 10% Earnings before income taxes $20 $35 73% $61 $72 20% Pre-tax Margins 5.8% 8.6% 280 bps 8.3% 9.1% 80 b
Slide 10: FY15 Outlook
10 FY15 Outlook Broadridge Financial Solutions, Inc. FY15 Outlook 11/6/2014 2/5/2015 Recurring Fee Revenue Growth 5 - 7% 5 - 7% Total Revenue Growth 4 - 6% 4 - 6% EBIT Margins 17.4 - 17.8% 17.4 - 17.8% Adjusted Pre-tax Margins 17.3 - 17.7% 17.3 - 17.7% Tax Rate 35.0% ~34.5% Adjusted Diluted EPS $2.4
Slide 11: Closing Summary
11 Closing Summary • Solid Q2 and YTD financial and recurring revenue closed sales performance reflects continued momentum • Reaffirming FY15 guidance • Expect full-year results to be aligned with three-year objectives ▪ Drive sales performance to deliver strong recurring revenue growth ▪ Build-out
Slide 12: Q&A and Closing Comments
12 Q&A and Closing Comments There are no slides during this portion of the presentation
Slide 13: Appendix
Appendix Bi Broadridge
Slide 14: Revenues and Earnings by Segment
14 Revenues Earnings FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 Q2 Q2 Q2 YTD Q2 YTD Q2 Q2 Q2 YTD Q2 YTD $349 $404 $728 $798 ICS (c) $20 $35 $61 $72 6% 16% 8% 10% ◄ Growth % / Margin % ► 5.8% 8.6% 8.3% 9.1% $171 $174 $337 $337 GTO (c) $35 $32 $67 $58 6% 2% 8% 0% ◄ Growth % / Margin % ► 20.6% 18.5% 20.0%
Slide 15: Reconciliation of Non-GAAP to GAAP Measures
15 Reconciliation of Non-GAAP to GAAP Measures 2Q14 2Q15 YTD14 YTD15 FY15 Range (a) Low High Adjusted Diluted EPS (Non-GAAP) $0.25 $0.32 $0.64 $0.62 $2.42 $2.52 Acquisition Amortization and Other Costs, net of taxes (0.03) (0.04) (0.06) (0.08) (0.13) (0.13) Diluted EPS (GAAP) $0.22 $0.28 $0.58 $0.54
Slide 16: ICS Key Segment Revenue Stats
16 ICS Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions Fee Revenues (e) 2Q14 2Q15 YTD FY14 YTD FY15 Type Proxy Equities $ 24.4 $ 27.6 $ 50.4 $ 54.2 RC Stock Record Position Growth 1 % 7 % 1 % 7 % Pieces 20.0 25.1 41.5 44.4 Mutual Funds $ 10.7 $ 11.0 $ 26.5 $ 21.0 ED Pieces 15.5
Slide 17: GTO Key Segment Revenue Stats
17 GTO Key Segment Revenue Stats RC= Recurring ED= Event-Driven In millions 2Q14 2Q15 FY14 YTD FY15 YTD Type Equity Transaction-Based Equity Trades (a) $ 33.5 $ 35.4 $ 65.9 $ 66.9 RC Internal Trade Volume (Average Trades per Day in '000) 938 1,026 911 959 Internal Trade Growth 18 % 9 % 16% 5 % Trade
Slide 18: Broadridge ICS Definitions
18 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 ba
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