Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q4 FY2021 Earnings Presentation
34 slides from Broadridge Financial Solutions's earnings presentation, Aug 12, 2021
Slide 1: Scaling a Global Fintech Leader: Fourth Quarter and Fiscal Year 2021
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 Fourth Quarter and Fiscal Year 2021 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 and KPIs
2© 2021 | Use of Non-GAAP financial measures and KPIs 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 (“EPS”), Adjusted EBITDA,
Slide 4: Key messages
3© 2021 | Key messages Broadridge is executing against our strategic growth plan across Governance, Capital Markets, and Wealth & Investment Management and investing for growth Continued balanced capital allocation including internal investments, the acquisition of Itiviti, and capital returns. Our
Slide 5: We are extending our Governance franchise
4© 2021 | We are extending our Governance franchise… $1.6B $1.7B $1.8B $1.9B FY'17 FY'18 FY'19 FY'20 FY'21 $2.1B 7% Continued double-digit growth in our higher-margin digital communications business 11% HIGHLIGHTS 1 2 3 4 5 Democratization of investing driving position growth which we expect will ca
Slide 6: Growing our Capital Markets franchise
5© 2021 | . . . growing our Capital Markets franchise. . . $517M $569M $591M $650M FY'17 FY'18 FY'19 FY'20 FY'21 $701M HIGHLIGHTS 1 2 3 New client onboardings highlights demand for technology and operational transformation . . . Strong start to Itiviti integration positions Broadridge to drive tradi
Slide 7: Building our Wealth & Investment Management franchise
6© 2021 | $352M $389M $406M $524M FY'17 FY'18 FY'19 FY'20 FY'21 . . . and building our Wealth & Investment Management franchise $558M HIGHLIGHTS 1 2 3 New client onboardings highlight strong demand for component solutions Continuing to work in partnership with UBS on ongoing rollout. Signing of RBC
Slide 8: Broadridge is well-positioned for growth
7© 2021 | Broadridge is well-positioned for growth Broadridge is well-positioned to deliver at the higher end of its three-year growth objectives Broadridge is executing on its growth strategy across Governance, Capital Markets and Wealth & Investment Management Fiscal Year 2022 guidance highlights
Slide 9: Summary financial performance
8© 2021 | Summary financial performance 4Q’21 Inc./(Dec.) FY’21 Inc./(Dec.) Recurring revenues $1,065 15% $3,333 10% Total revenues 1,532 12% 4,994 10% Operating income 281 (6%) 679 9% Adjusted Operating income (Non-GAAP) 349 4% 902 13% Adjusted Operating income margin (Non-GAAP) 22.8% (180bps) 18.1
Slide 10: Recurring revenue exceeded our 3-year growth objective
9© 2021 | Recurring revenue exceeded our 3-year growth objective Q4'20 Q4'21 RECURRING REVENUE GROWTH FY'18 FY'19 FY'20 FY'21 10% $930 $1,065 10% 6%6% $ in millions
Slide 11: ICS Fourth quarter and fiscal year 2021 Recurring revenues
10© 2021 | $137 $136 $89 $106 $90 $97 Q4'20 Q4'21 Regulatory Customer Comms. Data-Driven Fund Solutions Issuer $ in millions +20% (1%) +7% +27% ICS QUARTERLY RECURRING REVENUES ICS FISCAL YEAR RECURRING REVENUES YoY Growth ICS Fourth quarter and fiscal year 2021 Recurring revenues $300 $381 $573 $57
Slide 12: GTO Fourth quarter and fiscal year 2021 Recurring revenues
11© 2021 | $524 $558 $650 $701 FY'20 FY'21 $143 $145 $171 $201 4Q'20 4Q'21 Capital Markets Wealth & Investment Management +18% +1% GTO QUARTERLY RECURRING REVENUES GTO FISCAL YEAR RECURRING REVENUES YoY Growth $1,174 $1,258 $314 $346 GTO Fourth quarter and fiscal year 2021 Recurring revenues +8% +6%
Slide 13: Key volume drivers: position and trade volume growth
12© 2021 | 7% 11% 7% 11% 16% 24% 20% 33% 1% 6% 0% 2% 6% 5% 7% 11% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Equity MF/ETF EQUITY & MUTUAL FUND/ETF POSITION GROWTH Key volume drivers: position and trade volume growth (1)% (11)% 26% 22% 12% 24% 12% (1)%INTERNAL TRADE GROWTH (ITG) FY’20 FY’21 26%
Slide 14: Fourth quarter 2021 Recurring revenue growth drivers
13© 2021 | $930 $1,065 Q4'20 Recurring Revenue Closed Sales Client Losses Internal Growth Acquisitions Q4'21 Recurring Revenue Fourth quarter 2021 Recurring revenue growth drivers FOURTH QUARTER 2021 RECURRING REVENUES GREW 15% TO $1.1B Note: Amounts may not sum due to rounding. +6 pts (2) pts +7 pt
Slide 15: Fourth quarter total revenue growth drivers
14© 2021 | $51 $40 $31 $39 $68 $46 $45 $74 $73 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Fourth quarter total revenue growth drivers QUARTERLY EVENT DRIVEN REVENUE $1,362 $1,532 Q4'20 Total Revenue Recurring Event-Driven Distribution FX Q4'21 Total Revenue +10 pts 0 pts +2 pts 1 pt 12% F
Slide 16: Operating and Adjusted Operating Income Margin
15© 2021 | 13.8% 15.0% 13.8% 13.6% 18.4%21.9% Q4'20 Q4'21 Fourth quarter and fiscal year 2021 Operating and Adjusted Operating Income Margin 15.9% 17.1% 17.5% FY'18 FY'19 FY'20 FY'21 18.1% 24.6% 22.8% +80 bps +120 bps +40 bps +60 bps OPERATING INCOME MARGIN OPERATING INCOME MARGIN (GAAP) ADJUSTED OP
Slide 17: FY'21 closed sales exceeded guidance and pipeline is strong
16© 2021 | FY'20 FY'21 FY’21 closed sales exceeded guidance and our pipeline is strong FISCAL YEAR CLOSED SALES PERFORMANCE FY'18 FY'19 FY'20 FY'21 FY’21 SALES BACKLOG $242 $355 $400 $215 $233 $239 12% 12% % OF RECURRING REVENUE $ in millions
Slide 18: Capital allocation
17© 2021 | DIVIDENDS PER SHARE M&A Client Investment Spend CapEx and Software Capital allocation 2 1. Includes Software Purchases and capitalized internal use software. 2. Net cash spent on new client conversions, including development of platform capabilities. 3. Acquisition of Itiviti closed on Ma
Slide 19: Fiscal Year 2022 Guidance
18© 2021 | Fiscal Year 2022 Guidance FY’22 GUIDANCE Recurring revenue growth 12-15% Adjusted Operating Income Margin (Non-GAAP) ~19% Adjusted Earnings per Share Growth (Non-GAAP) 11-15% Closed sales $240-$280M
Slide 20: Appendix
Appendix oe es Broadridge:
Slide 21: Recurring and total revenue by segment, quarterly
20© 2021 | Confidential and Proprietary | 2020 2021 YoY % Dollars in millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Growth Investor Communication Solutions ("ICS") Regulatory $120 $130 $241 $300 $792 $136 $147 $290 $381 $954 20% Data-driven fund solutions 79 82 89 90 339 82 89 90 97 358 5% Issuer 15 18 35 8
Slide 22: Fiscal year 2021 Recurring revenue growth drivers
21© 2021 | $3,036 $3,333 FY'20 Recurring Revenue Closed Sales Client Losses Internal Growth Acquisitions FY'21 Recurring Revenue $576M $1,211M $623 FISCAL YEAR 2021 RECURRING REVENUES GREW 10% TO $3.3B Note: Amounts may not sum due to rounding. +6 pts (2) pts +3 pts +2 pts 10% $ in millions Pts cont
Slide 23: Fiscal year 2021 Total revenue drivers
22© 2021 | Fiscal year 2021 Total revenue drivers $4,529 $4,994 FY'20 Total Revenue Recurring Event-Driven Distribution FX FY'21 Total Revenue FISCAL YEAR 2021 REVENUE DRIVERS +7 pts +1 pt +2 pts 0 pts 10% $ in millions Pts contribution to growth
Slide 24: Fiscal year 2021 Event-driven revenue
23© 2021 | $173 $199 $219 $244 $178 $237 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 $219M FY’15-FY’21 AVERAGE FISCAL YEAR 2021 EVENT-DRIVEN REVENUE Fiscal year 2021 Event-driven revenue $ in millions $284
Slide 25: Explanation of Non-GAAP Measures and Reconciliation of GAAP to Non-GAAP Measures
24© 2021 | Explanation of Non-GAAP Measures and Reconciliation of GAAP to Non-GAAP Measures
Slide 26: Non-GAAP measures
25© 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 27: Non-GAAP measures
26© 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. EBITDAR reflects Adjusted EB
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
27© 2021 | Confidential and Proprietary | (Unaudited) Reconciliation of GAAP to Non-GAAP Measures Note: Amounts may not sum due to rounding. 3 Months Ended June 30 Fiscal Year Ended June 30 Dollars in millions 2021 2020 2021 2020 Operating income (GAAP) $281.4 $298.8 $678.7 $624.9 Adjustments: Amort
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
28© 2021 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures Note: Amounts may not sum due to rounding. Year ended June 30, Dollars in millions 2021 2020 2019 2018 Operating Income (GAAP) $678.7 $624.9 $652.7 $598.1 Adjustments: Amortization of acquired intangibles and purch
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
29© 2021 | Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures (a) Calculated using the GAAP effective tax rate, adjusted to exclude $2.4 million and $16.9 million of excess tax benefits associated with stock-based compensation for the three months and fiscal year ended June 3
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
30© 2021 | Confidential and Proprietary | 3 Months Ended June 30 Fiscal Year Ended June 30 Dollars in millions, except per share amounts 2021 2020 2021 2020 Diluted earnings per share (GAAP) $2.20 $1.97 $4.65 $3.95 Adjustments: Amortization of acquired intangibles and purchased intellectual property
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
31© 2021 | Confidential and Proprietary | Fiscal Year Ended June 30 Dollars in millions 2021 Net earnings (GAAP) $547.5 Provision for income taxes 148.7 Earnings before income taxes (GAAP) 696.2 Interest expense, net 55.2 Other non-operating income/expense, net (72.7) Operating income (GAAP) 678.7 N
Slide 33: Combined Entity Proforma Reconciliation Fiscal Year 2021
32© 2021 | Confidential and Proprietary | Fiscal Year Ended June 30 Dollars in millions 2021 Net earnings (GAAP) (a) $547.5 Pro forma net earnings $514.9 Combined provision for income taxes (b) 135.7 Pro forma earnings before income taxes 650.6 Interest expense, net (b) 87.9 Other non-operating inco
Slide 34: Broadridge Investor Relations Contacts
33© 2021 | W. Edings Thibault Tel: 516-472-5129 Email: Edings.Thibault@Broadridge.com Broadridge Investor Relations Contacts
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