Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2012 Earnings Presentation
27 slides from Broadridge Financial Solutions's earnings presentation, Nov 3, 2011
Slide 1: First Quarter Fiscal Year 2012 Earnings Webcast and Conference Call
Exhibit 99.2 Exhibit Earnings First © Broadridge November 2011 Quarter 99.2 Broadridge Webcast 3,and Fiscal 2011 the&Broadridge Financial Year Conference 2012Solutions, logo Callare registered Inc. trademarks of Broadridge Financial Solutions, Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Act similar statements. uncertainties any discussed small communication of Broadridge’s personnel; circumstances This presented uses 1and Broadridge of future not to presentation number 1995. provide meaning, a substitute in reports the These conjunction the Statements include system
Slide 3: Today's Agenda
Today’s Opening First Summary 2Rich Quarter Daly, Agenda Remarks, Q&A CEO Fiscal Closing DanFinancial Year Sheldon, Remarks 2012Highlights Highlights CFO RichandDaly, andOther Segment CEOKey Results Topics
Slide 4: Opening Remarks: Key Topics
Opening Financial Closed 3Key Activities Topics: Sales Remarks Highlights Performance Update Paladyne Systems Acquisition
Slide 5: Financial Highlights
Financial Revenues Primarily start investment Revenue 4Non-GAAP the year growth Highlights due for management diluted strong; the to acquisitions, of quarter 9% EPS mindful toof industry were 11% $1.50 that internal up Reaffirming 13% to Q1$1.60 makes growththe and full smallest net yearnew guidance
Slide 6: Closed Sales Performance
Closed Recurring ICS Total Due 5Confident recurring toclosed product Sales revenue in sales our Performance revenue expansion full (includes closed year closed sales recurring and recurring sales acquisitions werewere revenue $20M and$15M event-driven) vs closed $17M vs $7M sales in in prior for gui
Slide 7: Paladyne Systems Acquisition
Paladyne Leading Closed Expected Anticipate and buy-side 6largest Asiaglobal transaction provider platform Current Systems toitgenerate will asset be market of that Acquisition on managers slightly buy-side approximately September hasisaestimated suite dilutive technology 8, of 2011 products $26M in
Slide 8: Key Activities Update
Key Activities Morgan Continued IBM Penson Expanded SPS $16M 7additional successfully data inU.S. Stanley annualized center $8M $22M confidence conversion Update opportunity Smith migration in implementing annualized revenues that Barney expected the expected expected converted regulators transactio
Slide 9: Q1 FY12 Financial Highlights
Q1 FY12 Revenues Recurring Earnings EPS Free Refinanced Entered Anticipating 8Will up consider cash $0.05 into before Financial flow and revenues our apaying refinancing Non-GAAP earnings $500 $490 in credit income line Highlights increased million down facilities with before taxes $250M debt and qu
Slide 10: Segment Results: Investor Communication Solutions
Segment Investor Revenue/Growth Q1: FY12: No Q1 Recurring Client Event-driven 9Distribution change revenue $313M/ revenue $1,707 Communication Results revenues togrowth revenues 12% revenues FY12 toretention 1,718M &EBIT/Growth $8M/ driven Forecast for guidance onwere Q1 31% levels track Solutions /
Slide 11: Segment Results: Securities Processing Solutions
Segment Securities Revenue/Growth Q1: FY12: Q1 EBIT Initial Paladyne FY12 10 revenue $158M and guidance phase $656 Results acquisition margin Processing growth /to of +12% 672M Penson for &EBIT/Growth ahead revenue driven Forecast $28M closed /Solutions +10 U.S. of /by expectations to and +33% in co
Slide 12: Summary
Solidtostart Summary Recurring Meaningful Improving Consistent Strong Good Fiscal Highly Confident FY12 Path 11 recurring revenue year client engaged FY13fee in to market-driven closed 2012 contribution our fiscal revenue $2.00 revenues growth revenue associates focused ability sales year EPSretenti
Slide 13: Q&A
There are no slides during this portion of the presentation Q&A 12
Slide 14: Closing Comments
Closing There 13 areComments no slides during this portion of the presentation
Slide 15: Appendix
14 Appendix BG Broadridge
Slide 16: Other Segment and FY12 Forecast
Segment Other FY12 1Q12 Interest Corp. FX --EBIT Corporate Full Interest, FX: 15 Transaction -US Year P&L Low Expenses & Range $3M Expense, dollar net: Foreign Results range Expenses: -High Revenue $7M FY12 Activity weakened includes &Exchange & $9M net Investments reflects Forecast Q1 $5M $(2)M $(1
Slide 17: Revenue Growth Drivers and Historical Results
Revenue Historical (FY05-FY10) 6% 4% (2)% 2% 3% 5% 1% 0% 13.1% (a) (b) (d) 16 Internal Event-Driven Excludes (2)% 3% 2% 4% 7% (6)% (4)% 1%(1)% EBIT Acquisitions Total Closed Net Internal FX/Other Growth Total Event-Driven(b) Distribution(c) CAGR Client Growth New Margin the Recurring FY11 Revenue Sa
Slide 18: 1Q FY12 Results
1Qin Revenue $280 -10% $142 9% $421 -4% ($ ICS SPS Other FX Growth Interest Income Tax IBM Total Margin Diluted FY11 Earnings Q1 $6 2.3% 14.7% $27 6.5% ($6) $1 $23 5.5% ($2) $21 5.0% ($8) 36.4% $0 $13 3.2% 130 $0.10 (a) (b) 17 $0 $5 $8 $2 ($2) FY12 Includes from Q1 (b) 12% Rate $28 $36 $32 $29 $19 $
Slide 19: FY12 Guidance
Revenue $1,559 -7% $594 11% $2,153 $0 $14 $2,167 -2% Recurring FY12 Segments ($ ICS SPS Other FX Growth Interest Income Tax IBM Total Margin Diluted FY11 Earnings Actual $213 13.7% $87 14.7% $301 14.0% ($25) $9 $285 13.1% ($8) $276 12.7% ($100) 36.3% $176 8.1% ($4) $172 7.9% 128 $1.37 $1.34 (a) *(b)
Slide 20: Free Cash Flow Reconciliation
Unaudited Three September Depreciation Stock-based Subtotal Working Long-term IBM Penson Capital Free Acquisitions Stock Proceeds Dividends Other Net Cash (a) outstanding (b) (c) mid-point 19 Guidance FY12 Includes earnings cash change Cash cash /and Flow Flows (6) (1) repurchases Months ITO expendi
Slide 21: Closed Sales and Recurring Revenue
Closed ($ Recurring ICS SPS Total ~ (a) (b) (c) (d) 20Revenue in For Recurring SPS ICS $55 (b) millions) Recurring presentation Sales Recurring Recurring $30 $80 Closed FY09 Contribution $40 $65(d) to Closed Forecast Revenue Closed FY10 $50 Sales Closed Closed purposes, $65-85 $45-65 Sales FY11 Sale
Slide 22: Revenues by Segment
(a) Revenues ICS SPS Segment Acquisitions 9% Distribution Other/FX *NM= ($ Event-Driven Mutual Contest/ Recurring ED Total Growth (b)inIncludes 21 7% Distribution $$millions) Recurring BR Event-Driven Distribution 444 459 Not Fund 4% 16% 0% 7% 19% 20% 13% 10% 12% Includes Specials/ Recurring Revenue
Slide 23: EBIT and EPS Reconciliation
Reconciliation ($ EBIT Interest Total Margin EPS Actual Diluted charge (in Unaudited September Depreciation Stock-based Other Subtotal Working Long-term Net Cash IBM Penson Capital Free (a) outstanding (b) mid-point 22 in Includes Guidance millions) 1Q12 FY12 earnings cash Reconciliation Cash cash m
Slide 24: One-Time Items Reconciliation
One-time Actual Deal Amortization Integration One-Time Total EPS EBIT Margin Diluted (a) related 23 For impact Costs One-Time (Non-GAAP Actual to Informational % EPS closed Items 6.2% Restructuring (b) Costs ($0.01) excluding of Actual ($1) (For 8.2% Restructuring Intangibles transactions. -($0) /($
Slide 25: ICS Revenue Drivers and Ranges
Interims Proxy Other Key Fee Equities Stock Contests/Specials Notice Suppression Position Mutual Pieces Transaction Fulfillment Other-Recurring Other-Event-Driven Sales Losses Net Internal Recurring Acquisitions Total Event-Driven Distribution $TOTAL FY12 Low -1% 1% 3% 2% 5% 0% 4% 9% (a) (b) (c) (d)
Slide 26: SPS Revenue Drivers and Ranges
All Key 1Q11 Equity Fixed Trade Other #Outsourcing Total Sales Losses Net Transaction Concessions Internal Acquisitions TOTAL FY12 Low 5% 3% 2% -2% 0% 7% 10% (a) trade (b) 25 revenue. of1Q11 Equity Revenues 6% 4% 3% 1% 8% New Clients -2% Segment Revenue High 13% growth. Equity Fixed Net 4% 1Q12 Equi
Slide 27: Definitions
Broadridge Equities Proxy (meaning names services Contests Specials which Interims their Mutual in distributed Transaction Post-Sale Fulfillment Pre-Sale broker-dealers, Other actions 26 portfolio investors. Communications –the of such Funds Refers provided –Fulfillment –their that Fulfillment compa
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