Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Q1 2017 Earnings Presentation

15 slides from Broadridge Financial Solutions's earnings presentation, Nov 9, 2016

  1. Slide 1: Earnings Webcast & Conference Call First Quarter Fiscal Year 2017

    1 © 2014 | Earnings Webcast & Conference Call First Quarter Fiscal Year 2017 November 9, 2016 EXHIBIT 99.2

  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 Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Refor

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

    3 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. GAAP except where otherwise noted. In certain circumstances, results have been presented that are n

  4. Slide 4: Highlights

    4 Highlights  Solid 1Q financial results  On track to achieve Fiscal Year 2017 guidance and three year financial objectives  Continued momentum in Closed sales  NACC integration going well - on track to achieve synergy targets and executing on digital strategy  Blockchain investment demonstrate

  5. Slide 5: First Quarter 2017 Financial Summary

    5 First Quarter 2017 Financial Summary  First quarter is seasonally smallest quarter of Broadridge's fiscal year  Total revenue growth of 51% and recurring revenue growth of 32% o NACC acquisition biggest driver of growth o Organic recurring fee revenue growth of 3%  Strong bottom line growth o D

  6. Slide 6: Business Update

    6 Business Update  Interim record growth improved sequentially - still below recent levels  NACC integration going well o On track to achieve $20 million of targeted synergies o Building blocks of digital strategy coming into place including rollout of Broadridge Communications Cloud at Money 20/2

  7. Slide 7: First Quarter 2017 Revenue Growth Drivers

    7 First Quarter 2017 Revenue Growth Drivers  First Quarter 2017 recurring fee revenue grew 32% to $517 million Organic growth: 3% Amounts may not sum due to rounding ▪ First Quarter 2017 total revenue grew 51% to $895 million

  8. Slide 8: Strong Growth in GAAP and Adjusted Operating Income and Adjusted EPS

    8 Strong Growth in GAAP and Adjusted Operating Income and Adjusted EPS $ in millions Year-over-Year Change in Operating Income and Adjusted Operating Income Year-over-Year Change in EPS and Adjusted EPS $59 $66 $68 $82 $30 $40 $50 $60 $70 $80 $90 Q1 2016 Q1 2017 Operating Income Adjusted Operating I

  9. Slide 9: First Quarter 2017 Segment Results

    9 ($ in millions) Investor Communication Solutions (ICS) Q1 2016 Q1 2017 Change Recurring fee revenues $216 $329 52% Total revenues $430 $723 68% Earnings before income taxes $34 $33 (3)% Pre-tax margin 7.9 % 4.5 % -340 bps Global Technology and Operations (GTO) Q1 2016 Q1 2017 Change Total revenues

  10. Slide 10: Capital Allocation and Summary Balance Sheet

    10 Capital Allocation and Summary Balance Sheet Select Uses of Cash in First Quarter 2017 • $15 million in capital expenditures and software investment • $410 million to acquire NACC • $90 million for acquisition of Inveshare technology Summary Balance Sheet as of September 30, 2016 Assets Cash and

  11. Slide 11: Fiscal Year 2017 Guidance

    11 Fiscal Year 2017 Guidance Recurring fee revenue growth 29 - 31% Total revenue growth 43 - 45% Adjusted Operating income margin ~15% Diluted earnings per share growth 9 - 14% Adjusted earnings per share growth 12 - 17% Free cash flow $350M - $400M Closed sales $140M - $180M Segments ICS Total reve

  12. Slide 12: Closing Summary

    12 Closing Summary  Solid start to 2017 fiscal year o 32% recurring revenue growth, including 3% organic growth o 26% increase in closed sales  On track to achieve 2017 guidance  NACC integration going well o Putting in place building blocks of digital strategy  Making investment in blockchain c

  13. Slide 13: Appendix

    13 Appendix

  14. Slide 14: Reconciliation of Non-GAAP to GAAP Measures

    14 Reconciliation of Non-GAAP to GAAP Measures $ in million, except per share figures Three Months Ended September 30, 2016 2015 Operating income (GAAP) $ 66.0 $ 59.1 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 12.8 8.1 Acquisition and Integration Costs 2.8

  15. Slide 15: Reconciliation of Non-GAAP to GAAP Measures – Fiscal Year 2017 Guidance

    15 Reconciliation of Non-GAAP to GAAP Measures – Fiscal Year 2017 Guidance (Unaudited) Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 9% - 14% Adjusted earnings per share (Non-GAAP) 12% - 17% Adjusted Operating Income Margin (2) Operating income margin % (GAAP) ~13.6%

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