Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2022 Earnings Presentation
27 slides from Broadridge Financial Solutions's earnings presentation, Nov 3, 2021
Slide 1: Scaling a Global Fintech Leader: Earnings Conference Call, First Quarter Fiscal Year 2022
0© 2021 | Scaling a Global Fintech Leader E A R N I N G S C O N F E R E N C E C A L L First Quarter Fiscal Year 2022 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
1© 2021 | 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 Litigati
Slide 3: Use of Non-GAAP financial measures, KPIs and foreign exchange rates
2© 2021 | Use of Non-GAAP financial measures, KPIs and foreign exchange rates Use of Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures including Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share (“
Slide 4: Key messages
3© 2021 | Key messages Recurring revenue grew 16% propelled by revenue from Closed sales, robust Governance trends, and the continued successful integration of Itiviti Broadridge is executing its strategy across Governance, Capital Markets, and Wealth & Investment Management Reaffirming fiscal year
Slide 5: Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management
4© 2021 | Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Extend Governance Grow Capital Markets Build Wealth & Investment Mgmt. $410M +11% YoY $209M +34% YoY $131M +6% YoY Q1’22 Highlights • Continued strong position growth across both funds and equiti
Slide 6: Broadridge is well-positioned for long-term growth
5© 2021 | Broadridge is well-positioned for long-term growth Broadridge’s long-term organic and M&A investments deliver our clients the technology and scale needed to benefit from these trends Reaffirming our outlook for a strong Fiscal Year 2022 and remain on track to deliver at the higher end of o
Slide 7: Financial Overview
Financial Overview 7, CASE ee Lio Broadridge:
Slide 8: Summary financial results
7© 2021 | Summary financial results $ in millions, except per share data FIRST QUARTER SUMMARY FINANCIAL RESULTS 2022 2021 Inc./(Dec.) Recurring revenues $751 $650 16% Total revenues 1,193 1,017 17% Operating income 103 79 31% Adjusted Operating income (Non-GAAP) 177 151 17% Adjusted Operating incom
Slide 9: Recurring revenue increased 16% in first quarter 2022
8© 2021 | FY'19 FY'20 FY'21 FY'22 Recurring revenue increased 16% in first quarter 2022 Q1'21 Q1'22 RECURRING REVENUE GROWTH $650 $751 10%10% $ in millions Guidance 12 - 15% 6% +16%
Slide 10: First quarter 2022 segment Recurring revenues
9© 2021 | $124 $131 $156 $209 1Q'21 1Q'22 $138 $141 $18 $21 $79 $135 $165 1Q'21 1Q'22 Regulatory Customer Comms. Data-Driven Fund Solutions Issuer $ in millions + 16% + 2% + 5% +23% ICS RECURRING REVENUES GTO RECURRING REVENUES First quarter 2022 segment Recurring revenues $410 $369 Capital Markets
Slide 11: Key volume drivers: position and trade volume growth
10© 2021 | 16% 24% 20% 33% 39% 6% 5% 7% 11% 9% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Equity MF/ETF EQUITY & MUTUAL FUND/ETF POSITION GROWTH Key volume drivers: position and trade volume growth 12% 24% 12% (1)% 2% FY’20 FY’21 26% 10% 10% 2% ITG 12%9% TOTAL INTERNAL TRADE VOLUME GROWTH Note: Q1’21 positions r
Slide 12: First quarter 2022 Recurring revenue growth drivers
11© 2021 | First quarter 2022 Recurring revenue growth drivers FIRST QUARTER 2022 RECURRING REVENUES GREW 16% TO $751M ICS $369M 8 pts (2) pts 5 pts 0 pts $410M GTO $280M 5 pts (2) pts (2) pts 20 pts $341M $ in millions Pts contribution to growth $650 $751 1Q'21 Recurring Revenue Closed Sales Client
Slide 13: First quarter 2022 Total revenue growth drivers
12© 2021 | $45 $45 $73 $72 $76 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 $1,017 $1,193 1Q'21 Total Revenue Recurring Event-Driven Distribution FX 1Q'22 Total Revenue First quarter 2022 Total revenue growth drivers QUARTERLY EVENT-DRIVEN REVENUE +10 pts +3 pts +4 pts 1 pt 17% FIRST QUARTER 2022 TOTAL REVENUE GRO
Slide 14: Operating income margin and Adjusted Operating income margin
13© 2021 | 17.1% 17.5% 18.1% FY'19 FY'20 FY'21 FY'22 15.0% 13.8% 13.6% 8.7%7.7% Q1'21 Q1'22 14.8% 14.8% +120 bps +40 bps +60 bps OPERATING INCOME MARGIN (GAAP) ADJUSTED OPERATING INCOME MARGIN (NON- GAAP) ~19% Guidance Operating income margin and Adjusted Operating income margin OPERATING INCOME MAR
Slide 15: Closed sales remain on track with fiscal year 2022 guidance
14© 2021 | FY'20 FY'21 FY'22 1Q'21 1Q'22 $32 $30 $228 $232 Guidance Closed sales remain on track with fiscal year 2022 guidance $ in millions $240 – $280M CLOSED SALES
Slide 16: Capital allocation
15© 2021 | $1.94 $2.16 $2.30 $2.56 33% 11% 6% 11% DIVIDENDS PER SHARE M&A Client Platform Investments CapEx and Software Capital allocation 2 1. Includes Software purchases and capitalized internal use software. 2. Net investments on new client conversions, including development of platform capabili
Slide 17: Fiscal Year 2022 guidance
16© 2021 | Fiscal Year 2022 guidance FY’22 Guidance Updates / Changes Recurring revenue growth 12-15% No change Adjusted Operating income margin (Non-GAAP) ~19% No change Adjusted earnings per share growth (Non-GAAP) 11-15% No change Closed sales $240-$280M No change
Slide 18: Appendix
Appendix oe es Broadridge:
Slide 19: Supplemental reporting detail - product line reporting (Unaudited)
18© 2021 | Confidential and Proprietary | Supplemental reporting detail ‒ product line reporting (Unaudited) In the second quarter of fiscal year 2021, the Company changed its presentation of disaggregated revenue by product line disclosures to reflect internal realignment of the Company’s revenue r
Slide 20: Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures
19© 2021 | Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures
Slide 21: Non-GAAP measures: Explanation and Reconciliation
20© 2021 | Non-GAAP 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. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstances, r
Slide 22: Non-GAAP measures
21© 2021 | Non-GAAP measures Adjusted EBITDA reflects Net earnings before interest, taxes, other non-operating (income)/expenses net, depreciation, amortization, Acquisition and Integration Costs, Real Estate Realignment and Covid-19 Related Expenses and Software Charge. We exclude Acquisition and I
Slide 23: Reconciliation of GAAP to Non-GAAP measures (Unaudited)
22© 2021 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP measures (Unaudited) (a) Calculated using the GAAP effective tax rate, adjusted to exclude $4.3 million and $9.3 million of excess tax benefits associated with stock-based compensation for the three months ended September 3
Slide 24: Reconciliation of GAAP to Non-GAAP measures (Unaudited)
23© 2021 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP measures (Unaudited) (a) Calculated using the GAAP effective tax rate, adjusted to exclude $4.3 million and $9.3 million of excess tax benefits associated with stock-based compensation for the three months ended September 3
Slide 25: Reconciliation of GAAP to Non-GAAP measures (Unaudited)
24© 2021 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP measures (Unaudited) Year ended June 30, Dollars in millions 2021 2020 2019 Operating income (GAAP) $678.7 $624.9 $652.7 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 153.7 122.9 87.4
Slide 26: Fiscal Year 2022 Adjusted Earnings Per Share Growth Rate
25© 2021 | Confidential and Proprietary | Fiscal Year, 2022 Adjusted Earnings Per Share Growth Rate (a) Diluted earnings per share – GAAP (5) – 0% growth Adjusted earnings per share – Non-GAAP 11-15% growth Adjusted Operating Income Margin (b) Operating income margin % - GAAP ~14% Adjusted Operating
Slide 27: Contacts
26© 2021 | Contacts W. Edings Thibault Edings.Thibault@Broadridge.com Sean Silva Sean.Silva@Broadridge.com Replay Options Online replay available at broadridge-ir.com Telephone replay available through November 10, 2021 Domestic Dial-In: 1-877-344-7529 Access Code: 10161306 International Toll Dial-I
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