Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Presentation (August 2016)
29 slides from Broadridge Financial Solutions's investor presentation, Aug 17, 2016
Slide 1: Investor Presentation First Quarter Fiscal 2017
Broadridge Financial Solutions, Inc. Investor Presentation First Quarter Fiscal 2017 Exhibit 99.1
Slide 2: Forward-looking statements
1 © 2015 | 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, and which may b
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: Broadridge Has a Strong and Predictable Business Model
5 © 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 reven
Slide 7: Sustainable Growth, Operational Excellence, and Sound Capital Deployment Will Drive Performance
6 © 2015 | Sustainable Growth, Operational Excellence, and Sound Capital Deployment 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 Margin1 Ex
Slide 8: $24B Market Opportunity Bolstered By Key Market Trends
7 © 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 9: We Report Two Operating Segments
8 © 2015 | We Report Two Operating Segments 1. Investor Communication Solutions 2. Global Technology & Operations Broadridge has three segments, ICS, GTO, and Other.
Slide 10: ICS Revenue Breakdown and Growth Trends
9 © 2015 | $1,647 $1,776 $1,881 $2,030 $2,220 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 $ in millions ICS Revenue Breakdown and Growth Trends FY 2016 ICS Revenues of $2.22 billion1 Broad Client Base $864 39% $348 16% $143 6% $178 8% $242 1
Slide 11: GTO Revenue Breakdown and Growth Trends
10 © 2015 | $642 $645 $681 $693 $738 $300 $400 $500 $600 $700 $800 $900 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 $ in millions GTO Revenue Breakdown and Growth Trends By Product1 Strong Market Position Clears and settles in over 70 countries Processes avg. of over $5 trillion in equity and fixed inco
Slide 12: Strong Performance Provides Platform For Growth
11 © 2015 | Strong Performance Provides Platform For Growth Note: Unaudited. Note: Adjusted Operating Income and Adjusted Operating Income Margin are Non-GAAP measures. See the Appendix for reconciliations to closest GAAP measures. FY12 FY16 FY12-FY16 CAGR Total Revenue $2.2B $2.9B 6% Recurring Fee
Slide 13: Fiscal Year 2017 Guidance
12 © 2015 | Broadridge Recurring fee revenue growth 29-31% Total revenue growth 43-45% Adjusted Operating income margin ~15% Diluted earnings per share growth 9-14% Adjusted Diluted earnings per share growth 12-17% Free cash flows $350-$400M Closed sales $140-$180M Segments ICS Total revenue growth
Slide 14: On Track to Achieve Three Year Financial Objectives
13 © 2015 | FY15–FY17 FY16A FY17* Recurring Fee Revenue Growth 7-10% 9% 29-31% Total Revenue Growth 5-7% 8% 43-45% Adjusted Operating Inc. Margin +50-60bps/yr. 18.5% ~15% Adjusted EPS Growth 9-11% 11% 12-17% On Track to Achieve Three Year Financial Objectives 3-Year Compound Annual Growth Rates * As
Slide 15: Executing Our Capital Stewardship Strategy To Enhance Shareholder Value
14 © 2015 | Pr io ri ty Executing Our Capital Stewardship Strategy To Enhance Shareholder Value Committed to a strong dividend Targeting tuck-in acquisitions to drive growth Share repurchases Maintain investment grade credit rating Fiscal Years 2013 - 2016: Select Uses of Cash (a) Purchases of Treas
Slide 16: Customer Communications Combination Highlights
15 © 2015 | Customer Communications Combination Highlights Compelling financial and strategic opportunities Compelling near term financial benefits Attractive medium term expansion opportunity Larger long term opportunity Projected to be accretive to EPS and Adjusted EPS in FY 2017 (EPS accretion
Slide 17: Broadridge Investment Thesis
16 © 2015 | Broadridge 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 strong
Slide 18: Fourth Quarter and Fiscal Year 2016 Highlights
Broadridge Fourth Quarter and Fiscal Year 2016 Highlights
Slide 19: Fiscal Year 2016 Financial Summary
18 © 2015 | Fiscal Year 2016 Financial Summary · Revenue growth of 8% led by strong growth in recurring fee revenues · Recurring revenue growth of 9% driven by revenues from closed sales · Internal growth lower than anticipated · Strong bottom line growth · Diluted EPS growth of 9% · Adjusted Dilute
Slide 20: Business Update
19 © 2015 | Business Update · Record closed sales reflects growing demand for Broadridge services · Strong closed sales results in both segments · Key wins highlight growing acceptance of Broadridge as value-added provider · Very healthy pipeline entering Fiscal Year 2017 · Lower than expected inter
Slide 21: Organic Growth Driving Recurring Fee Revenues
20 © 2015 | Organic Growth Driving Recurring Fee Revenues Fiscal Year 2016 Recurring Revenue Drivers Fourth Quarter 2016 Recurring Revenue Drivers Note: Amounts may not sum due to rounding
Slide 22: Components of Total Revenue Growth
21 © 2015 | Components of Total Revenue Growth Fiscal Year 2016 Fourth Quarter 2016 Note: Amounts may not sum due to rounding
Slide 23: Fourth Quarter and Fiscal Year 2016 Segment Results
22 © 2015 | ($ in millions) Investor Communication Solutions (ICS) 4Q 2015 4Q 2016 Change FY 2015 FY 2016 Change Recurring Fee Revenues $429 $460 7% $1,048 $1,157 10% Total Revenues $766 $804 5% $2,030 $2,220 9% Earnings before income taxes $246 $262 7% $381 $409 7% Pre-tax Margin 32.1 % 32.6 % 50 b
Slide 24: Closing Summary
23 © 2015 | Closing Summary · Strong 2016 Results · 9% recurring revenue growth and 11% growth in Adjusted EPS · Record closed sales · 10% increase in annual dividend underscores commitment to healthy and growing dividend · Broadridge exits 2016 well-positioned for long-term growth · Secular pressur
Slide 25: Appendix
Appendix B& Broadridge-
Slide 26: Non-GAAP measures notice
25 © 2015 | The Company’s results in this presentation are presented in accordance with U.S. GAAP except where otherwise noted. In certain circumstances, results have been presented that are not generally accepted accounting principles measures (“Non-GAAP”). These Non-GAAP measures are Adjusted Oper
Slide 27: Definitions
26 © 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
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
27 © 2015 | Reconciliation of GAAP to Non-GAAP Measures $ in millions, except per share figures Fourth Quarter Fiscal Year 2016 2015 2016 2015 Operating income (GAAP) $ 270.3 $ 261.8 $ 500.3 $ 466.9 Acquisition Amortization and Other Costs 8.8 8.6 36.8 30.2 Adjusted Operating income (Non-GAAP) $ 279
Slide 29: Reconciliation of GAAP to Non-GAAP Measures - FY17 Guidance
28 © 2015 | Reconciliation of GAAP to Non-GAAP Measures- FY17 Guidance Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 9% - 14% Adjusted Diluted earnings per share (Non-GAAP) 12% - 17% Adjusted Operating Income Margin (2) Operating income margin % (GAAP) ~13.6% Adjusted
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