27 slides from Broadridge Financial Solutions's earnings presentation, Aug 9, 2012
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2012 © 2012 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. August 9, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements This press release 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 and Other Rich Daly, CEO Key Topics Fourth Quarter and Fiscal Year 2012 Dan Sheldon, CFO Highlights and Segment Results Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Closing Remarks Rich Daly, CEO 2
Slide 4: Key Topics
Opening Remarks Key Topics: Fiscal Year Financial Highlights Penson Update Closed Sales Performance Acquisition Update Fiscal Year 2013 Guidance 3
Slide 5: FY12 Financial Highlights
FY12 Financial Highlights Recurring revenues for the year were up 11% Approximately 50% organic growth and 50% growth from acquisitions Strong recurring revenue closed sales results Total revenue was up 6% Event-driven and distribution revenues were essentially flat with last year Non-GAAP diluted e
Slide 6: Penson Update
Penson Update In May 2012, Penson announced its agreement with PEAK6 to form Apex Clearing (Apex) for the acquisition of Penson’s U.S. broker-dealer business In June 2012, we announced that we had entered into a ten-year agreement with Apex to provide outsourcing services similar to what we had prov
Slide 7: Closed Sales Performance
Closed Sales Performance Strong recurring revenue closed sales of $120M for fiscal year 2012 Up 6% vs fiscal year 2011 ICS recurring revenue closed sales were up 13% to $72M SPS recurring revenue closed sales were down slightly to $48M from $50M Recurring revenue closed sales from transactions less
Slide 8: Acquisition Update
Acquisition Update Since fiscal year 2007, we have spent approximately $460M on acquisitions The acquisitions contributed approximately $218M to revenue, $39M to EBITDA (Non-GAAP) and $15M to EBT (GAAP) in fiscal year 2012 (less interest, depreciation and amortization of $24M) We anticipate that the
Slide 9: Fiscal Year 2013 Guidance
Fiscal Year 2013 Guidance Recurring revenue growth 4-7% • Revenue growth of 3-4% Non-GAAP diluted earnings per share from continuing operations of $1.65-1.75, excluding Penson Charges, net GAAP diluted earnings per share from continuing operations of $1.60-1.70 Free cash flow of $225M (at mid-point)
Slide 10: Revenue Growth Drivers and EBIT Margin
Revenue Growth Drivers and EBIT Margin Historical CAGR Actual Full yr Forecast (FY05-FY10) FY11 FY12 FY13 6% (2)% Total Revenue Growth 6% 3-4% 4% 3% Closed Sales (Recurring) 3% 4-5% (2)% (1)% Client Losses (1)% (1)% 2% 2% Net New Business 2% 3-4% (a) 3% 1% Internal Growth 1% 0% 0% 4% Acquisitions 3%
Slide 11: Segment Results & Forecast – Securities Processing Solutions
Segment Results & Forecast – Securities Processing Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) FY12: $655M / +10% $91M / +4% 13.9% / (80) bps FY13: $658 to 683M / 0 to +4% $79 to 102M / (13) to +12% 12.0 to 15.0% / (190) to +110 bps Fiscal Year 2012 Full year revenue up
Slide 12: Segment Results & Forecast – Investor Communication Solutions
Segment Results & Forecast – Investor Communication Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) FY12: $1,634M / 5% $243M / 14% 14.9% / 120 bps FY13: $1,695 to 1,707M / ~4% $291 to 299M / 20 to 23% 17.2 to 17.5% / 230 to 260 bps FY12 fee revenue, EBIT, and margin at high
Slide 13: Summary
Summary Solid Non-GAAP operating results for fiscal year 2012 Recurring fee revenue and closed sales results continue to be strong Volumes were up slightly and event-driven revenues were flat Penson transaction disappointment This is a different business than was spun off five years ago We do not be
Slide 14: Q&A
Q&A There are no slides during this portion of the presentation 13
Slide 15: Closing Comments
Closing Comments There are no slides during this portion of the presentation 14
Slide 16: Appendix
15 Appendix Bg Broadridge
Slide 17: Segment Results & Forecast – Other & Foreign Exchange (FX)
Segment Results & Forecast – Other & Foreign Exchange (FX) FY13 Range FY12 Low High Corp. Expenses $(28)M $(30)M $(37)M Interest Expense, net $(13)M $(17)M $(21)M FX - P&L - Revenue $13M $13M $13M - EBIT $14M $14M $14M - Transaction Activity $0M $(1)M $(1)M (Pre-tax Adjustments to Net Earnings refle
Slide 18: Broadridge 4Q and FY12 from Continuing Operations
Broadridge 4Q and FY12 from Continuing Operations Revenue Earnings FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Q4 Q4 Full Yr Full Yr ($ in millions) Q4 Q4 Full Yr Full Yr $617 $630 $1,559 $1,634 ICS $174 $187 $213 $243 1% 2% -7% 5% Growth % / Margin % 28.3% 29.7% 13.7% 14.9% $152 $167 $594 $655 SPS $20
Slide 19: Broadridge FY13 Guidance from Continuing Operations
Broadridge FY13 Guidance from Continuing Operations Revenue Earnings FY12 FY13 Range FY12 FY13 Range Actual Low High ($ in millions) Actual Low High $1,634 $1,695 $1,707 ICS $243 $291 $299 5% 4% 4% Growth % / Margin % 14.9% 17.2% 17.5% $655 $658 $683 SPS $91 $79 $102 10% 0% 4% Growth % / Margin % 13
Slide 20: Cash Flow – FY12 Results and FY13 Forecast
Cash Flow –FY12 Results and FY13 Forecast Free Cash Flow - Non-GAAP Unaudited ($ millions) Year ended FY13 Range (a) June 2012 Low High Free Cash Flow (Non-GAAP) : Net earnings from continuing operations (GAAP) $ 125 $ 205 $ 218 Depreciation and amortization (includes other LT assets) 92 95 105 Stoc
Slide 21: Recurring Closed Sales to Revenue Contribution
Recurring Closed Sales to Revenue Contribution (a) (b) ($ in millions) Closed Sales Revenue Contribution Backlog Forecast Forecast Forecast FY13 FY13 FY13 ICS $50-70 ~$50-60 ~$35-45 ~Contribution to revenue growth ~3% SPS $60-80 ~$40-50 ~$85-105 ~Contribution to revenue growth 6-8% Total Recurring C
Slide 22: Revenues and Closed Sales FY05-FY12
Revenues and Closed Sales FY05-FY12 ($ in millions) Recurring Fee Revenues FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 ICS $ 444 $ 513 $ 519 $ 558 $ 583 $ 610 $ 650 $ 699 Growth 16% 1% 8% 4% 5% 7% 8% SPS $ 459 $ 458 $ 509 $ 515 $ 537 $ 513 $ 522 $ 545 Growth 0% 11% 1% 4% -4% 2% 4% Organic Segment Recurr
Slide 23: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures Total EBT from continuing operations (EBT) Reconciliation 4Q11 4Q12 FY11 FY12 FY13 Range ($ in millions) Actual Actual Actual Actual Low High EBIT (Non-GAAP) $190 $200 $285 $319 $353 $377 Margin % 24.4% 24.9% 13.1% 13.9% 14.9% 15.7% Interest & Other ($2) (
Slide 24: One-time Items
One-time Items (For Informational Purposes Only) Total Acquisition Related Costs (a) 4Q11 4Q12 FY11 FY12 FY13 Range Actual Actual Actual Actual Low High Deal Costs (b) $0 $0 ($3) ($2) $0 $0 Amortization of Intangibles ($5) ($5) ($14) ($22) ($22) ($22) Integration Costs ($1) $0 ($2) $0 $0 $0 Total Ac
Slide 25: ICS Key Segment Revenue Stats
ICS Key Segment Revenue Stats RC= Recurring Fee Revenues 4Q11 4Q12 FY11 FY12 Type ED= Event-Driven In millions Proxy Equities $ 198.3 $ 202.7 $ 279.5 $ 282.8 RC Stock Record Position Growth 1% 1% 0% 1% Pieces 214.2 214.4 283.8 280.5 Mutual Funds $ 8.9 $ 8.9 $ 39.0 $ 28.2 ED Pieces 10.4 12.0 51.4 41.
Slide 26: SPS and Outsourcing Key Segment Revenue Stats
SPS and Outsourcing Key Segment Revenue Stats 4Q11 4Q12 FY11 FY12 Type RC= Recurring ED= Event-Driven In millions Equity Transaction-Based EquityTrades (a) $ 35.5 $ 32.4 $ 141.4 $ 137.1 RC Internal Trade Volume 965 901 964 957 Internal Trade Growth -4% -7% -1% -1% Trade Volume (Average Trades per Da
Slide 27: Broadridge ICS Definitions
Broadridge ICS Definitions Proxy Equities – Refers to the proxy services we provide in connection with annual stockholder meetings for publicly traded corporate issuers. Annual meetings of public companies include shares held in "street name" (meaning that they are held of record by brokers or banks