Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q4 2015 Earnings Presentation
19 slides from Broadridge Financial Solutions's earnings presentation, Aug 7, 2015
Slide 1: Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2015
1© 2014 | Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2015 August 7, 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 natur
Slide 3: Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures
3 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 generally accepted accounting principles in the United States (“GAAP”) except where otherwise noted. In certain circumstances, results have
Slide 4: Key Messages
4 Key Messages • FY15 performance and FY16 guidance are consistent with our Investor Day three-year objectives • Net New Business drove solid Q4 and full-year recurring fee revenue growth along with contribution from tuck-in acquisitions • Strong recurring revenue closed sales performance led to ano
Slide 5: FY15 Financial Highlights and FY16 Guidance
5 FY15 Financial Highlights and FY16 Guidance • Continuation of recurring fee revenue momentum ▪ Recurring fee revenue growth of 6% primarily from Net New Business • Recurring revenue closed sales growth of 15% to a record $146M • Adjusted Diluted EPS growth of 10% to $2.47 • Closed four tuck-in acq
Slide 6: Acquisitions Update
6 Acquisitions Update • During Q4, completed the acquisition of the Fiduciary Services and Competitive Intelligence unit from Thomson Reuters Lipper division (now known as Broadridge Fund Information Services) ▪ Closed in June; purchase price of $77M ▪ Powered by Lipper data, expands Broadridge’s le
Slide 7: FY16 Business Update
7 FY16 Business Update • Broadridge's current and planned business solutions enable the financial services industry to address increasing regulatory pressures which are driving up costs and shrinking ROEs • Our investments in digital solutions have enabled increased investor engagement as well as re
Slide 8: Key Financial Drivers - FY15
8 4Q Full Year FY15 FY15 FY15 Guidance Growth Drivers as a % of Recurring Fee Revenues Recurring Revenue From Closed Sales 5% 6% Client Losses (2)% (3)% Net New Business 3% 3% Internal Growth 2% 1% Organic Growth 5% 4% Acquisitions 2% 2% Total Recurring Fee Revenue Growth 7% 6% 5-7% Growth Drivers a
Slide 9: Investor Communication Solutions (ICS) and Global Technology and Operations (GTO)
9 Investor Communication Solutions (ICS) 4Q14 4Q15 Versus Prior Year FY2014 FY2015 Versus Prior Year Recurring fee revenues $395 $429 8% $961 $1,048 9% Total revenues $718 $766 7% $1,881 $2,030 8% Earnings before income taxes $219 $246 13% $336 $381 13% Pre-tax margin 30.5% 32.1% 160 bps 17.9% 18.8%
Slide 10: Income Statement Presentation
10 Income Statement Presentation Consolidated Statements of Earnings For Illustrative Purposes Only Fiscal Year ended June 30, 2015 (Unaudited) (In millions, except per share amounts) Current Presentation Operating Income Presentation Revenues $2,694.2 $2,694.2 Operating Expenses: Cost of revenues 1
Slide 11: FY16 Guidance
11 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 share growth 7 - 12% Free cash flows $350M - 400M Recur
Slide 12: Closing Summary
12 Closing Summary • Strong FY15 performance and FY16 guidance are consistent with our Investor Day three-year objectives • Net New Business drove solid Q4 and full-year recurring fee revenue growth along with contribution from acquisitions • Strong recurring revenue closed sales performance led to
Slide 13: Q&A and Closing Comments
13 Q&A and Closing Comments There are no slides during this portion of the presentation
Slide 14: Appendix
14 Appendix
Slide 15: FY14 - FY15 Annual Income Statement
15 FY14 - FY15 Annual Income Statement For Illustrative Purposes Only Consolidated Statements of Earnings FY14 FY15 Revenues $ 2,558.0 $ 2,694.2 Operating Expenses: Cost of revenues 1,761.4 1,828.2 Selling, general and administrative expenses 378.7 399.1 Total operating expenses 2,140.1 2,227.3 Oper
Slide 16: FY14 Income Statement by Quarter
16 FY14 Income Statement by Quarter For Illustrative Purposes Only 1Q 2Q 3Q 4Q Full Year (Unaudited) FY14 FY14 FY14 FY14 FY14 (In millions, except per share amounts) Revenues $545.2 $520.6 $606.3 $885.9 $2,558.0 Operating Expenses: Cost of revenues 397.5 385.1 427.6 551.2 1,761.4 Selling, general an
Slide 17: FY15 Income Statement by Quarter
17 FY15 Income Statement by Quarter For Illustrative Purposes Only 1Q 2Q 3Q 4Q Full Year (Unaudited) FY15 FY15 FY15 FY15 FY15 (In millions, except per share amounts) Revenues $555.8 $574.6 $634.2 $929.6 $2,694.2 Operating Expenses: Cost of revenues 406.5 414.0 452.6 555.1 1,828.2 Selling, general an
Slide 18: Reconciliation of Non-GAAP to GAAP Measures
18 Reconciliation of Non-GAAP to GAAP Measures Three Months Ended June 30, Fiscal Year Ended June 30, 2015 2014 2015 2014 EBIT (Non-GAAP) $ 262.2 $ 213.0 $ 463.8 $ 420.3 Acquisition Amortization and Other Costs 8.6 6.9 30.2 24.7 Interest and Other, net (6.8) (6.4) (24.9) (24.8) Adjusted Earnings bef
Slide 19: Reconciliation of Non-GAAP to GAAP Measures - FY16 Guidance
19 Reconciliation of Non-GAAP to GAAP Measures- FY16 Guidance 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 Operating income margin %
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