Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Non-Deal Roadshow (February 2023)
28 slides from Broadridge Financial Solutions's roadshow presentation, Feb 10, 2023
Slide 1: Scaling a Global Fintech Leader: Mid-Year 2023 Outlook Call for Retail Investors
0© 2023 | Scaling a Global Fintech Leader Mid-Year 2023 Outlook Call for Retail Investors February 9, 2023 Exhibit 99.1
Slide 2: Forward-Looking Statements
1© 2023 | 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") contains “forward-looking statements” within the meaning of the Private Securities Litigation
Slide 3: Use of Non-GAAP financial measures, KPIs and Foreign exchange rates
2© 2023 | 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: Program Overview
3© 2023 | Program Overview Fiscal Year 2023 Mid-year outlook Q&A Introduction to Broadridge1 2 3 Edings Thibault Senior Vice President of Investor Relations
Slide 5: Broadridge is a global Fintech leader
4© 2023 | Broadridge is a global Fintech leader Managing governance for 750 million shareholder positions Powering $9T per day in fixed income and equity trades Distributing more than 7B critical communications each year 750 MILLION $9 TRILLION 7 BILLION Broadridge powers the critical infrastructure
Slide 6: FY'22 Revenue Composition
5© 2023 | FY’22 Revenue Composition 65% 30% 5% 61% 24% 15% $5.7B FY’22 TOTAL REVENUE Recurring Revenue Distribution Revenue Event-Driven Revenue Governance Capital Markets Wealth & Investment Management $3.7B FY’22 RECURRING REVENUE GTO ICS
Slide 7: Strong track record of delivering growth and value
6© 2023 | $4.19 $4.66 $5.03 $5.66 $6.46 2.5 3.5 4.5 5.5 6.5 7.5 1000 1500 2000 2500 3000 3500 4000 FY'18 FY'19 FY'20 FY'21 FY'22 Recurring revenue growth Adjusted EPS Strong track record of delivering growth and value $M except for per share measures 10% Recurring revenue average annual growth 11% A
Slide 8: A clear path for long term growth
7© 2023 | A clear path for long term growth A global Fintech leader addressing a large and growing market Three franchise businesses executing on clear growth strategies grounded in long-term trends Long track record delivering consistent growth and strong total shareholder returns 2014 Invest for G
Slide 9: Key messages
8© 2023 | Key messages Note: Statements regarding our FY’23 guidance and three-year objectives are made as of our earnings call held on February 2, 2023 and are not updated as of the date of this presentation Broadridge delivered strong first half results including 9% Recurring revenue growth consta
Slide 10: Summary financial results
9© 2023 | Summary financial results SIX MONTHS ENDED SUMMARY FINANCIAL RESULTS 2023 2022 Inc./(Dec.) Recurring revenues $1,646 $1,543 7% Total revenues 2,576 2,452 5% Operating income 195 172 14% Adjusted Operating income – Non-GAAP 323 318 2% Diluted earnings per share $0.91 $0.97 (6%) Adjusted ear
Slide 11: Executing across Governance: Extend Governance
10© 2023 | Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Extend Governance H1’23 Summary • 9% equity position growth and 10% mutual fund/ETF position growth highlight continued investor participation • Driving innovation: • Pass-Through Voting • Tailo
Slide 12: Executing across Governance: Grow Capital Markets
11© 2023 | Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Grow Capital Markets H1’23 Summary • Strong Capital Markets growth propelled by BTCS business • BTCS cross-selling efforts are delivering results • Distributed Ledger Repo continues to gain trac
Slide 13: Executing across Governance: Build Wealth & Investment Mgmt.
12© 2023 | Broadridge is executing across Governance, Capital Markets, and Wealth & Investment Management Build Wealth & Investment Mgmt. H1’23 Summary • Healthy core growth was partially offset by a license revenue growover from last year’s large client renewal • Wealth Management platform achieves
Slide 14: Fiscal Year 2023 Guidance as of February 2, 2023
13© 2023 | Fiscal Year 2023 Guidance as of February 2, 2023 FY’23 Guidance Updates/ Changes Recurring revenue growth constant currency - Non-GAAP 6 - 9% No Change Adjusted Operating income margin - Non-GAAP Increase of ~ 50 bps No Change Adjusted earnings per share growth - Non-GAAP 7 - 11% No Chang
Slide 15: Investor Day FY20-FY23 Growth Objectives
14© 2023 | INVESTOR DAY FY20-FY23 GROWTH OBJECTIVES FY20-FY23 CAGR PERFORMANCE Organic Recurring revenue growth 5 – 7% Above Recurring revenue growth 7 – 9% Above Adjusted Operating income margin – Non-GAAP 50+ bps/yr In line Adjusted earnings per share growth – Non-GAAP 8 – 12% Higher end Broadridg
Slide 16: Broadridge's business model is built for growth through the economic cycle
15© 2023 | Broadridge’s business model is built for growth through the economic cycle We have strong market positions based on mission-critical infrastructure that enables corporate governance and powers trading and investing1 2 3 We are innovating across Governance, Capital Markets, and Wealth & In
Slide 17: Q&A Session
Q&A Session oa Broadridge’
Slide 18: Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures
17© 2023 | Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures
Slide 19: Explanation and Reconciliation of the Company's Use of Non-GAAP Financial Measures
18© 2023 | Confidential and Proprietary | 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 cir
Slide 20: Non-GAAP exclusions explained
19© 2023 | Confidential and Proprietary | We exclude Acquisition and Integration Costs, IBM Private Cloud Charges, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, Russia- Related Exit Costs, the Software Charge, and Loss (Gain) on Acquisition-Related Financial Instrument fro
Slide 21: Reconciliation of GAAP to Non-GAAP Measures: Recurring revenue growth
20© 2023 | Confidential and Proprietary | (Unaudited) Global Technology and Operations Capital Markets Wealth and Investment Management Total Recurring revenue growth (GAAP) 8% (1)% 4% Impact of foreign currency exchange 5% 2% 4% Recurring revenue growth constant currency (Non-GAAP) 13% 1% 8% Six Mo
Slide 22: Reconciliation: Operating income and Net earnings
21© 2023 | Confidential and Proprietary | (Unaudited) Six Months Ended Dec. 31 Dollars in millions 2022 2021 Operating income (GAAP) $195.4 $172.1 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 109.5 131.2 Acquisition and Integration Costs 7.7 10.7 Real Estate
Slide 23: Reconciliation: Adjusted earnings per share
22© 2023 | Confidential and Proprietary | (Unaudited) (a) Real Estate Realignment Expenses impacted Adjusted earnings per share by $0.00 for the six months ended December 31, 2021. Covid-19 Related Expenses impacted Adjusted earnings per share by $0.03 for the six months ended December 31, 2021. (b)
Slide 24: Reconciliation: Adjusted operating income, fiscal years
23© 2023 | Confidential and Proprietary | (Unaudited) (a) Real Estate Realignment Expenses were $23.0 million, $29.6 million, and $0.0 million for the year ended June 30, 2022, 2021, and 2020, respectively. Covid-19 Related Expenses were $7.5 million, $15.7 million, and $2.4 million for the year end
Slide 25: Reconciliation: Adjusted earnings per share, fiscal years
24© 2023 | Confidential and Proprietary | (Unaudited) Year ended June 30, Dollars in millions, except per share amounts 2022 2021 2020 2019 2018 Diluted earnings per share (GAAP) $4.55 $4.65 $3.95 $4.06 $3.56 Adjustments: Amortization of acquired intangibles and purchased intellectual property 2.11
Slide 26: Reconciliation: Free cash flow and conversion
25© 2023 | Confidential and Proprietary | (Unaudited) (a) Last twelve months (LTM) sums the last four quarters of Free cash flow for the given period (b) Last twelve months (LTM) sums the last four quarters of Adjusted Net earnings for the given period (c) Free cash flow conversion is calculated as
Slide 27: Reconciliation of GAAP to Non-GAAP Measures: Fiscal Year 2023 Guidance
26© 2023 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures: Fiscal Year 2023 Guidance Fiscal Year, 2023 FY23 Recurring revenue growth (a) Impact of foreign currency exchange – Recurring revenue growth constant currency – Non-GAAP 6-9% FY23 Adjusted Operating income margin
Slide 28: Broadridge Investor Relations Contacts
27© 2023 | W. Edings Thibault Greg Faje Sean Silva broadridgeir@broadridge.com Broadridge Investor Relations Contacts
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