Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — FY2008 Earnings Presentation
25 slides from Broadridge Financial Solutions's earnings presentation, Aug 14, 2008
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Fourth Quarter and Fiscal Year 2008 August 14, 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 Full Year & Fourth Quarter 2008 Results Dan Sheldon, CFO Fiscal Year 2009 Guidance Summary Dan Sheldon, CFO 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 reconcili
Slide 4: Opening Remarks: Full Year & Fourth Quarter 2008 Financial Results
Opening Remarks Key Topics: Full Year & Fourth Quarter 2008 Financial Results • Revenues and earnings for the quarter and fiscal year were in line with expectations • Full year diluted earnings per share (EPS) within latest 2008 EPS guidance • Exceeded original financial guidance for Pre-tax Earning
Slide 5: Opening Remarks: Fiscal Year 2009 Guidance Overview
Opening Remarks Key Topics: Fiscal Year 2009 Guidance overview: • Sales Plan of $160M to $180M, or 7% to 21% growth over fiscal year 2008 • Operating units projected to continue to perform well in light of challenging markets, as we expect revenue improvement in core segments • Revenue growth of 2%
Slide 6: Opening Remarks: Investor Communication Business Overview
Opening Remarks Key Topics: Investor Communication business overview: • ICS segment represents over 70% of Broadridge’s revenues and earnings • Fiscal year 2009 revenue growth in the range of 2% to 4%, and fee only revenue growth of 5% to 9% • Sales Plan range of $100M to $110M • Continued industry
Slide 7: Opening Remarks: Securities Processing and Clearing and Outsourcing Overview
Opening Remarks Key Topics: Securities Processing and Clearing and Outsourcing businesses overview: • Fiscal year 2009 revenue growth in the range of 2% to 4% for Securities Processing segment and 8% to 16% for Clearing and Outsourcing segment • Sales Plan range of $60M to $70M and includes $25M to
Slide 8: Opening Remarks: Free Cash Flow & Policy Update
Opening Remarks Key Topics: Free Cash Flow & Policy Update • Free cash flow in the range of $180M to $250M • Continued to pay down long-term debt to maintain our Debt-to-EBITDA goal of 1:1 ratio • Returning cash to stockholders: Raising dividend to $0.28 per year, an increase of approximately 17% ov
Slide 9: Broadridge Results – Q4 & FY 2008
Broadridge Results – Q4 & FY 2008 FY08 Key Highlights: Q4 represents over 35% of our full year revenues and over 50% of our full year earnings Q4 - Revenue 2% (fee only 7%) to $792M and Full Year 3% (fee only 6%) to $2.2B • Sales contributed 3% (Full Year = 2%) • Losses reduced growth by 2% (Full Ye
Slide 10: Segment Results – Investor Communication Solutions
Segment Results – Investor Communication Solutions 4Q FY08 FY09 Range ($ in millions) Actual Actual Low High Revenues $630 $1,575 $1,612 $1,644 Growth Rate 2% 1% 2% 4% Fee Revenues $322 $767 $803 $837 Growth Rate 9% 5% 5% 9% Recurring (RC) 10% 5% 6% 8% Event-driven (ED) -1% 0% -1% 1% Distribution Re
Slide 11: Segment Results – Securities Processing Solutions
Segment Results – Securities Processing Solutions 4Q FY08 FY09 Range ($ in millions) Actual Actual Low High Revenues $133 $514 $526 $535 Growth Rate 2% 2% 2% 4% Margin 20.8% 26.7% 25.3% 26.0% Margin Basis Points (bps) Changes 610 bps 190 bps 140 bps 70 bps FY08 Key Highlights: Revenues - Q4 and Full
Slide 12: Segment Results – Clearing and Outsourcing Solutions
Segment Results – Clearing and Outsourcing Solutions 4Q FY08 FY09 Range ($ in millions) Actual Actual Low High Revenues $24 $96 $104 $111 Growth Rate -8% 2% 8% 16% Margin -4% -5% -5% -2% Pre-tax Loss -$1 -$5 -$5 -$2 FY08 Key Highlights: Revenues (Q4 8% and Full Year 2%) • Q4 - Net New Business contr
Slide 13: Segment Results – Other & Foreign Exchange (FX)
Segment Results – Other & Foreign Exchange (FX) 4Q FY08 FY09 Range ($ in millions) Actual Actual Low High Revenues Other (termination fees) $1 $9 $0 $1 FX $5 $14 $7 $14 Pre-tax Margin Other Termination Fees $1 $9 $0 $1 Transition Expense -$4 -$14 $0 $0 Corporate & Investments -$16 -$32 -$41 -$39 Int
Slide 14: Fiscal Year 2009 Grow-Over Discussion
Fiscal Year 2009 Grow-Over Discussion First half of FY’09 tough EPS compare given one-time items in FY’08 Positive impact to FY’08 for Other – corporate/investments of $0.10 per share and equal negative EPS impact to FY’09 FY'08 Grow Overs ($ in millions) Q1 Q2 Q3 Q4 FY09 Other- Corp/Investments Ter
Slide 15: Broadridge Cash Flow – FY 2008 and FY 2009 Forecast
Broadridge Cash Flow – FY 2008 and FY 2009 Forecast Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP Unaudited (In millions) Twelve Months Ended FY09 Range June 30, 2008 Low High Ridge Clearing All Other All Other Financing Processing Broadridge Processing Calculation of
Slide 16: Broadridge - FY 2009 Financial Guidance Summary
Broadridge - FY 2009 Financial Guidance Summary Revenue growth is cyclical: In up markets expect high single digit to low double digit growth In down markets expect negative to single digit growth Revenue growth of 2% - 4% (3% to 7% fee only) Sales Plan for year of $160M - $180M Earnings before inte
Slide 17: Summary
Summary Solid fiscal year 2008 and exceeded original guidance despite challenging market conditions Notice & Access successfully implemented as a result of our industry leadership and has generated meaningful industry savings Use strong free cash flows to pay increased dividend, and execute share re
Slide 18: Q&A
Q&A There are no slides during this portion of the presentation 17
Slide 19: Closing Comments
Closing Comments There are no slides during this portion of the presentation 18
Slide 20: Appendix
Ce ee Appendix Appendix 19 ea Broadridge’
Slide 21: Segments – FY 2009 Financial Guidance Summary
Segments – FY 2009 Financial Guidance Summary Investor Communication: Revenues 2% - 4% Margins 16.6% - 17.0% Sales Plan $100M - $110M Securities Processing: Revenues 2% - 4% Margins 25.3% - 26.0% Clearing and Outsourcing: Revenues 8% - 16% Operating losses at $2M - $5M Sales Plan $60M - $70M for the
Slide 22: GAAP to Non-GAAP Earnings Reconciliation
GAAP to Non-GAAP Earnings Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures Earnings, Margins and Per Share Reconciliation (In millions except per share and margin data) (unaudited) Three Months Ended June 30, 2008 Three Months Ended June 30, 2007 Earnin
Slide 23: EPS Impact from One-time Items and Termination Fees Reconciliation
EPS Impact from One-time Items and Termination Fees Reconciliation Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures Impact of One-time on Earnings Per Share Reconciliation (In millions except per share) (unaudited) Fiscal Year 2008 1st 2nd 3rd 4th Full Year Earnings P
Slide 24: Intersegment Transfer Pricing Reconciliation
Intersegment Transfer Pricing Reconciliation Broadridge Financial Solutions, Inc. Intersegment Transfer Price Reconciliation ($ In millions except margin data) (Unaudited) Three months ended Twelve months ended June 30, June 30, 2008 2007 2008 2007 Investor Communication Solutions Net revenue as rep
Slide 25: 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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