Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 FY2008 Earnings Presentation
21 slides from Broadridge Financial Solutions's earnings presentation, May 8, 2008
Slide 1: Earnings Webcast & Conference Call Presentation
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Presentation Third Quarter Fiscal Year 2008 May 8, 2008
Slide 2: Forward-Looking Statements
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 nature,
Slide 3: Today's Agenda
Today’s Agenda Opening Remarks Rich Daly, CEO rd 3 Quarter & YTD FY 2008 Results Dan Sheldon, CFO Fiscal Year 2008 Guidance Update Rich Daly, CEO Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relations Closing Remarks Rich Daly, CEO Note: For a reconciliation of
Slide 4: Opening Remarks – Outline
Opening Remarks – Outline Key Topics: Financial results for the third quarter • Increasing our full year EPS guidance • Revenues and earnings for quarter are directly in line with expectations • As anticipated year-over-year quarterly earnings and margins are down as a result of previously announced
Slide 5: Opening Remarks – Investor Communication business overview
Opening Remarks – Outline Key Topics: Investor Communication business overview: • Investor Communication Solutions our largest segment, historically responsible for over 70% of our annual revenues and earnings, is growing • Business is extending market leadership position • Grew over previously anno
Slide 6: Opening Remarks – Securities Processing and Clearing overview
Opening Remarks – Outline Key Topics: Securities Processing business overview: • Business is performing better than anticipated for the year given 1st half trades per day growth • Current market conditions present both opportunities and challenges • Successful implementation consolidating RBC’s reta
Slide 7: Broadridge Results – 3Q & YTD FY 2008
Broadridge Results – 3Q & YTD FY 2008 Q3 - Revenue 1% to $499M (without distribution fee 1%) YTD - Revenue 4% to $1,415M (without distribution fee 6%) Q3 Fiscal 2008 revenue growth building blocks: • Sales contributed 3% - (YTD = 2%) • Losses reduced growth by 5% - (YTD = 5%) • Internal growth contr
Slide 8: Segments Results – Investor Communication Solutions
Segments Results – 3Q & YTD FY 2008 Investor Communication Solutions 3Q 3Q YTD FY08 ($ in millions) Actual Actual Range Low High Revenues $343 $945 $1,566 $1,594 Growth Rate 1% 1% 1% 3% Fee Revenues $157 $446 $751 $766 Growth Rate 1% 2% 3% 5% Recurring (RC) 3% 2% 5% 5% Event-driven (ED) -2% 0% -2% 0
Slide 9: Segments Results – Securities Processing Solutions
Segments Results – 3Q & YTD FY 2008 Securities Processing Solutions Q3 Revenues 4% to $129M • Net new business contributed -4% (Sales of 3% offset by losses of 7% – impact of previously announced fiscal year 2007 client loss) • Internal Growth contributed .4% – Equity Trades Per Day (TPD) 4% to slig
Slide 10: Segments Results – Clearing and Outsourcing Solutions
Segments Results – 3Q & YTD FY 2008 Clearing and Outsourcing Solutions Q3 Revenues 1% to $23M • Sales contributed 12% to growth • Previously announced client loss reduced growth by 12% • Internal growth contributed 1% (TPD up and net interest income down) YTD Revenues 6% to $72M, primarily from Sale
Slide 11: Broadridge Cash Flow – 3Q YTD FY 2008
Broadridge Cash Flow – 3Q YTD FY 2008 Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP Unaudited (In millions) Nine Months Ended March 31, 2008 Clearing & Outsourcing All Other Broadridge Calculation of Free Cash Flow (Non-GAAP): Segment Segments Total Earnings $ (3) * $
Slide 12: Fiscal Year 2008 Guidance & Summary
Fiscal Year 2008 Guidance & Summary Increased our full year EPS guidance range: EPS before one-time transition expenses of $1.30 - $1.40 to a new range of $1.35 - $1.45 per share (Non-GAAP) EPS after one-time transition expenses of $1.25 - $1.35 to a new range of $1.29 - $1.39 per share (GAAP) The f
Slide 13: Q&A
Q&A There are no slides during this portion of the presentation 12
Slide 14: Closing Comments
Closing Comments There are no slides during this portion of the presentation 13
Slide 15: Appendix
Ce ee Appendix Appendix 14 es Broadridge’
Slide 16: Broadridge - Fiscal Year 2008 Financial Guidance
Broadridge - Fiscal Year 2008 Financial Guidance Revenue growth of 2% - 4% Diluted Earnings Per Share Before one-time transition expenses of $1.35 - $1.45 – Non-GAAP After one-time transition expenses of $1.29 - $1.39 – GAAP Earnings before interest and taxes margins (excluding one-time transition e
Slide 17: Segments – Fiscal Year 2008 Financial Guidance
Segments – Fiscal Year 2008 Financial Guidance Investor Communication : Revenues 1% - 3% Margins 15.5% - 16.4% Securities Processing : Revenues flat to 1% Margins 25.8% - 26.8% Clearing and Outsourcing: Revenues 3% - 4% Operating losses at $4M - $5M 16
Slide 18: GAAP to Non-GAAP Earnings Reconciliation
GAAP to Non-GAAP Earnings Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures Earnings, Margins and Per Share Reconcilation (In millions except per share and margin data) (unaudited) Three months ended March 31, 2008 Three months ended March 31, 2007 Earni
Slide 19: GAAP to Non-GAAP Free Cash Flow Reconciliation
GAAP to Non-GAAP Free Cash Flow Reconciliation Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP (In millions) (Unaudited) Net Cash Flow Less: Capital Provided by (Used in) Expenditures Free Operating Activities and Intangibles Cash Flow Nine Months ended March 31, 2008 $
Slide 20: Intersegment Transfer Pricing Reconciliation
Intersegment Transfer Pricing Reconciliation Broadridge Financial Solutions, Inc. Intersegment Transfer Price Reconciliation ($ In millions except margin data) (Unaudited) Three months ended Nine months ended March 31, March 31, 2008 2007 2008 2007 Investor Communication Solutions Net revenue as rep
Slide 21: Use of Materials Contained Herein
Use of Materials Contained Herein The information contained in this presentation is being provided for your convenience and information only. This information is accurate as of the date of its initial presentation. If you plan to use this information for any purpose, verification of its continued ac
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