Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Q2 2018 Earnings Presentation

21 slides from Broadridge Financial Solutions's earnings presentation, Feb 8, 2018

  1. Slide 1: Earnings Webcast & Conference Call Second Quarter and First Six Months of Fiscal Year 2018

    1© 2017 | Earnings Webcast & Conference Call Second Quarter and First Six Months of Fiscal Year 2018 EXHIBIT 99.2

  2. Slide 2: Forward-Looking Statements

    © 2017 | Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigatio

  3. Slide 3: Use of Non-GAAP Financial Measures

    © 2017 | Use of Non-GAAP Financial Measures Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation are presented in accordance with U.S. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain c

  4. Slide 4: Second Quarter 2018 Highlights and Financial Summary

    © 2017 | Second Quarter 2018 Highlights and Financial Summary ▪ Strong second quarter 2018 financial results • Total revenues up 13% to $1.01 billion • Recurring fee revenue growth of 5% to $562 million • Strong Operating income and margin growth • Diluted EPS and Adjusted EPS rose 108% and 103%, re

  5. Slide 5: Business Update

    © 2017 | Business Update ▪ ICS total revenues up 14% • Recurring revenue growth of 5% excluding customer communications ◦ Regulatory communications revenues up 6% as fund flows remained strong ◦ 1% decline in customer communications revenues due to expected roll-off of BRCC revenues • $68 million in

  6. Slide 6: Tax Act Impact to Broadridge

    © 2017 | Tax Act Impact to Broadridge 2017 2018 2019 $ in millions FY 2Q 1H FYOutlook FY Indicative Effective Tax Rate (GAAP) 33.1% 40.0% 37.0% ~28% Effective Tax Rate (GAAP) 33.1% 40.0% 37.0% ~28% Net Tax Charges1 - ($16) ($16) ($16) Tax Rate Excluding Non-Recurring Gains & Charges2 33.7% 24.3% 28.

  7. Slide 7: Second Quarter 2018 Revenue Growth Drivers

    © 2017 | Second Quarter 2018 Revenue Growth Drivers ▪ Second Quarter 2018 Recurring fee revenues grew 5% to $562 million ▪ Second Quarter 2018 Total revenues grew 13% to $1.01 billion 2Q17 Total Revs. Recurring Event-Driven Distribution FX 2Q18 Total Revs. $1,013 M +3% +8% +3% 0% 2Q17 Recurring Revs

  8. Slide 8: 1H 2018 Revenue Growth Drivers

    © 2017 | 1H 2018 Revenue Growth Drivers ▪ Six Months Fiscal 2018 Recurring fee revenues grew 5% to $1.11 billion ▪ Six Months Fiscal 2018 Total revenues grew 8% to $1.94 billion 2Q17 Total Revs. Recurring Event-Driven Distribution FX 2Q18 Total Revs. $1,938 M+3% +5% 0% 0% 2Q17 Recurring Revs. Closed

  9. Slide 9: Second Quarter 2018 GAAP and Adjusted Operating Income and Adjusted EPS

    © 2017 | Second Quarter 2018 GAAP and Adjusted Operating Income and Adjusted EPS $ in millions, except per share amounts Year-over-Year Change in Operating Income and Adjusted Operating Income Year-over-Year Change in EPS and Adjusted EPS Operating Income Adj. Operating Income $150 $125 $100 $75 $50

  10. Slide 10: Six Months Fiscal Year 2018 GAAP and Adjusted Operating Income and Adjusted EPS

    © 2017 | Six Months Fiscal Year 2018 GAAP and Adjusted Operating Income and Adjusted EPS $ in millions, except per share amounts Year-over-Year Change in Operating Income and Adjusted Operating Income Year-over-Year Change in EPS and Adjusted EPS Operating Income Adj. Operating Income $250 $225 $200

  11. Slide 11: Segment Results

    © 2017 | ($ in millions) Investor Communication Solutions ("ICS") 2Q 1H 2017 2018 Change 2017 2018 Change Recurring fee revenues $329 $334 2% $653 $667 2% Event-driven fee revenues 30 97 227% 67 157 133% Distribution revenues 346 370 7% 702 705 0% Total revenues $704 $802 14% $1,422 $1,529 7% Earnin

  12. Slide 12: Capital Allocation and Summary Balance Sheet

    © 2017 | Capital Allocation and Summary Balance Sheet Select Uses of Cash through Second Quarter FY2018 Summary Balance Sheet as of December 31, 2017 Assets Cash and cash equivalents $ 366 Other assets 2,883 Total assets $ 3,250 Liabilities and Stockholders' Equity Total debt outstanding $ 1,223 Oth

  13. Slide 13: Fiscal Year 2018 Guidance

    © 2017 | Fiscal Year 2018 Guidance Original Revised Recurring fee revenue growth 4 - 6% 4 - 6% Total revenue growth 2 - 3% 2 - 4% Operating income margin - GAAP ~14% ~14% Adjusted Operating income margin - Non-GAAP ~16% ~16% Diluted earnings per share growth* 15 - 19% 22 - 26% Adjusted earnings per

  14. Slide 14: FY17-FY20 Three Year Growth Objectives

    © 2017 | FY17-FY20 Three Year Growth Objectives FY17 - FY20 Three Year Objectives Updated for Change in U.S. Tax Law Recurring fee revenue growth 7 - 9% Total revenue growth 5 - 7% Adjusted Operating income margin expansion ~50bps/yr Adjusted EPS Growth 9 - 13% 14 - 18% Note: Three Year objectives a

  15. Slide 15: Closing Summary

    © 2017 | Closing Summary ▪ Strong second quarter results • Total revenue growth of 13% ◦ Record event-driven revenues in first half of fiscal year 2018 ◦ Recurring revenue growth of 5% • 103% growth in Adjusted EPS to $0.79 in the second quarter ▪ Revised financial guidance for fiscal year 2018 • 27

  16. Slide 16: Appendix

    © 2017 | Appendix 16

  17. Slide 17: Historical Segment Results: Q1 FY2017 - Q2 FY2018

    © 2017 | ($ in millions) Investor Communication Solutions ("ICS") Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Recurring fee revenues $324 $329 $383 $589 $333 $334 Event-driven fee revenues 37 30 61 91 59 97 Distribution revenues 357 346 376 476 334 370 Total revenues $718 $704 $820 $1,156 $726 $

  18. Slide 18: Reconciliation of GAAP to Non-GAAP Measures

    © 2017 | Reconciliation of GAAP to Non-GAAP Measures $ in millions, except per share amounts Three Months Ended December 31, Six Months Ended December 31, 2017 2016 2017 2016 Operating income (GAAP) $ 115.1 $ 58.8 $ 199.5 $ 124.9 Adjustments: Amortization of Acquired Intangibles and Purchased Intell

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

    © 2017 | Reconciliation of GAAP to Non-GAAP Measures Six Months Ended December 31, 2017 2016 Net cash flows provided by (used in) operating activities (GAAP) $ 141.8 $ (5.5) Capital expenditures and Software purchases and capitalized internal use software (52.5) (32.0) Free cash flow (Non-GAAP) $ 89

  20. Slide 20: Reconciliation of GAAP to Non-GAAP Measures - Revised FY18 Guidance

    © 2017 | Reconciliation of GAAP to Non-GAAP Measures - Revised FY18 Guidance (Unaudited) Adjusted Earnings Per Share Growth Rate (1) (2) Diluted earnings per share (GAAP) 22% - 26% Adjusted earnings per share (Non-GAAP) 27% - 31% Adjusted Operating Income Margin (3) Operating income margin % (GAAP)

  21. Slide 21: Broadridge Investor Relations

    © 2017 | Broadridge Investor Relations W. Edings Thibault Investor Relations Tel: 516-472-5129 Email: edings.thibault@broadridge.com 21

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