Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Presentation (February 2016)
21 slides from Broadridge Financial Solutions's investor presentation, Feb 24, 2016
Slide 1: Broadridge Financial Solutions, Inc. Investor Presentation February 2016
Broadridge Financial Solutions, Inc. Investor Presentation February 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements
1 © 2015 | Forward-Looking Statements The Broadridge February 2016 Investor 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. S
Slide 3: Broadridge Has Deep Connections Across Four Client Segments
2 © 2015 | Broadridge Has Deep Connections Across Four Client Segments • Institutional Broker-Dealers • Bank-Owned Institutional Broker-Dealers • Institutional Clearing Houses • Asset Managers • Investment Managers • Mutual Funds • Retirement Plan Providers • Hedge Funds • Fund Administrators • Reta
Slide 4: Broadridge's Technology-Driven Solutions
3 © 2015 | Broadridge’s Technology-Driven Solutions • Global Trade Processing (e.g., Equity, Fixed Income, Accenture Post Trade Processing) • Enterprise Retail Trade Processing • FX&L / SWIFT Messaging / Reconciliations • Data and Analytics • Revenue and Expense Management • Managed Services • Custo
Slide 5: Broadridge's Unique Franchise in Financial Services
4 © 2015 | Broadridge’s Unique Franchise in Financial Services 98% client revenue retention rate 50+ years of financial services experience of the top-101 global banks are our clients 10 #1 leading provider of U.S. beneficial proxy and prospectus, U.S. fixed income & Canadian equity processing Billi
Slide 6: We Report Two Operating Segments
5 © 2015 | We Report Two Operating Segments 1. Investor Communication Solutions 2. Global Technology & Operations Broadridge has three segments, ICS, GTO, and Other.
Slide 7: $24B Market Opportunity Bolstered By Key Market Trends
6 © 2015 | $24B Market Opportunity Bolstered By Key Market Trends Current Addressable Market Key Market Trends $16B $8B Global Technology & Operations Investor Communication Solutions Mutualization Strong drive to standardize duplicative, non-differentiating industry capabilities Digitization Digita
Slide 8: ICS Revenue Overview By Product
7 © 2015 | ICS Revenue Overview By Product1 Broad Client Base $809 40% $267 13% $149 7% $163 8% $225 11% $418 21% B A N K S B R O K E R - D E A L E R S M U T U A L F U N D S C O R P O R AT E I S S U E R S Distribution Emerging & Acquired and Other Fulfillment Transaction Reporting Interims Proxy Inc
Slide 9: GTO Revenue Overview By Product
8 © 2015 | GTO Revenue Overview By Product1 Strong Market Position Clears and settles in over 70 countries Processes on average over $5 trillion in equity and fixed income trades per day in U.S. and Canadian securities Provide fixed income trade processing services to 16 of the 22 primary dealers of
Slide 10: Sustainable Growth, Operational Excellence, and a Sound Capital Deployment Strategy Will Drive Performance
9 © 2015 | Sustainable Growth, Operational Excellence, and a Sound Capital Deployment Strategy Will Drive Performance • Drive organic growth in current markets • Exploit adjacencies 7–10% Recurring Fee 3-Year CAGR (FY14–FY17F) Sustainable Growth • Realize efficiencies • Increase operational leverage
Slide 11: Broadridge Has a Strong and Predictable Business Model
10 © 2015 | Broadridge Has a Strong and Predictable Business Model 98% client revenue retention rate Consistently high retention rate reflects the strength of our client relationships Long-term contracts Expanding portfolio of growth products Growth products now contribute ~25% of recurring fee reve
Slide 12: Strong Performance Provides Platform For Growth
11 © 2015 | FY11 FY15 FY11-FY15 CAGR Total Revenue $2.2B $2.7B 6% Recurring Fee Revenue $1.3B $1.7B 7% Adjusted Operating Income $305M $497M 13% Adjusted Operating Income Margin 14.1% 18.5% 110 bps average p.a. Closed Sales $113M $146M 7% Strong Performance Provides Platform For Growth Note: Unaudit
Slide 13: Revenue Growth History and Objectives
12 © 2015 | FY11–FY14 Recurring Fee Revenue Net New Business 5% Internal Growth 1% Acquisitions 2% 8% Total Revenue Recurring Fee 5% Event-Driven 0% Distribution/Other 1% 6% FY15–FY17F 5%–7% 0%–1% ~2% 7%–10% 4%–6% ~0% ~1% 5%–7% Revenue Growth History and Objectives 3-Year compounded annual growth ra
Slide 14: Executing Our Capital Stewardship Strategy To Enhance Shareholder Value
13 © 2015 | P rio rit y Executing Our Capital Stewardship Strategy To Enhance Shareholder Value Committed to a strong dividend Targeting ~45% of net earnings Targeting tuck-in acquisitions to drive growth Selectively targeting about $400- $600M from FY15 to FY17 Share repurchases Increase targeted l
Slide 15: Our Acquisition Track Record Is Strong
14 © 2015 | Our Acquisition Track Record Is Strong Broadridge has invested $777M in 15 key acquisitions since becoming a public company • FY07 – FY09: Investigo, Access Data • FY10 – FY13: City Networks, StockTrans, NewRiver, Matrix, Forefield, Paladyne • FY14: Bonaire, Emerald Connect • FY15: Trade
Slide 16: Broadridge's Investment Thesis
15 © 2015 | Broadridge’s Investment Thesis • Resilient, predictable business model • Large market opportunity aligned with powerful industry trends • Unique franchise and ubiquitous presence • Track record driving growth through new products and tuck-in acquisitions • Low capital intensity and stron
Slide 17: Appendix
Appendix BG Broadridge:
Slide 18: FY16 Guidance (as of Q2 FY16 Earnings Call)
17 © 2015 | FY16 Guidance (as of Q2 FY16 Earnings Call) Broadridge Financial Solutions, Inc. Recurring fee revenue growth 10 - 12% Total revenue growth 8 - 10% Adjusted Operating income margin ~18.4% Effective tax rate ~34.8% Adjusted Diluted earnings per share growth 8 - 12% Diluted earnings per sh
Slide 19: Reconciliation of Non-GAAP to GAAP Measures – Adjusted Operating Income
18 © 2015 | Reconciliation of Non-GAAP to GAAP Measures – Adjusted Operating Income (Unaudited) Fiscal Year Ended June 30, 2015 2011 Adjusted Operating income (Non-GAAP) $ 497.1 $ 304.6 Acquisition Amortization and Other Costs (30.2 ) (19.2 ) IBM Migration Costs - (6.3 ) Operating income (GAAP) $ 46
Slide 20: Reconciliation of Non-GAAP to GAAP Measures – FY16 Guidance
19 © 2015 | Reconciliation of Non-GAAP to GAAP Measures – FY16 Guidance (Unaudited) Earnings Per Share Growth Rate (1) FY16 Guidance Adjusted Diluted earnings per share (Non-GAAP) 8% - 12% growth Diluted earnings per share (GAAP) 7% - 12% growth Operating Income Margin (2) FY16 Guidance Adjusted Ope
Slide 21: Definitions
20 © 2015 | Definitions Acquisition Amortization and Other Costs represent amortization charges associated with acquired intangible asset values as well as other deal costs associated with the Company’s acquisition activity. Adjusted Debt/EBITDAR Ratio is calculated as (Debt + 8x Rent Expense) / (EB
Broadridge Financial Solutions — Investor Presentation (February 2016) on 6ix