Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Presentation (June 2018)
15 slides from Broadridge Financial Solutions's investor presentation, Jun 5, 2018
Slide 1: Investor Presentation June 2018
EXHIBIT 99.1 INVESTOR PRESENTATION JUNE 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 Se
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial 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 circumstan
Slide 4: Track record of growth and value creation
Track record of growth and value creation RECURRING FEE REVENUE GROWTH BROADRIDGE SHARE PRICE $2.5B $115 9% 20% CAGR Annualized TSR $1.1B $20 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 $115 share price as of 5
Slide 5: Broadridge is Ready For Next
Broadridge is Ready For Next Market dynamics driving strong growth for Broadridge’s technology-driven solutions Proven strategy and experienced management team to drive sustainable growth Uniquely positioned to deliver network value and capture additional, large market opportunities Successful track
Slide 6: The industry's leading choice
The industry’s leading choice GOVERNANCE CAPITAL MARKETS WEALTH MANAGEMENT • Process 80% of outstanding • Clear and settle over $5T • Support 50M+ accounts shares in the United States, per day through our technology 50%+ for rest of world platform • Serve 18 of 23 US primary • Distribute 90%+ of bro
Slide 7: Broadridge platform-based business model creates unique value
Broadridge platform-based business model creates unique value Deep financial services knowledge ,,; ~~,, , --------- .. , , , .. .. , ... .. ' , ' /,, 111 \\ I \ I, 'I I I I I I • Domain expertise I I I I I \ • Trusted , .. -\ I -.. ,,.. .. - .... .. .... ,, ,, .. , ,, .. .. , \ I ' \ I \ I \ I \ I
Slide 8: Extend Governance
Extend Governance 5,000+ 150,000+ CORPORATE ISSUERS INSTITUTIONAL SHAREHOLDERS Key Opportunities • Transform regulatory communications • Develop omni-channel •• communications 24,000+ 140M+ • Expand issuer services MUTUAL FUNDS RETAIL SHAREHOLDER and continue to bring 1,100+ ACCOUNTS transparency to
Slide 9: Drive Capital Markets
Drive Capital Markets Asset Class and Function Coverage Equities Fixed Trade & Foreign Exchange Exchange Income Position & Money Traded Financing Markets Derivatives Drive global technology platform SOLUTION COMPONENTS Managed Services Options Extend with additional Unified Portal solutions Core Com
Slide 10: Build Wealth Management
Build Wealth Management • Educational content • Enriched, digital communications • Clearance & settlement • Trading and account • Client and regulatory servicing • Wealth management reporting Drive winning targeted tools • Business process solutions • Targeted marketing automation & workflows • Weal
Slide 11: Broadridge business model is strong
Broadridge business model is strong • Large, recurring revenue base with good visibility Sustainable Growth • Organic strength driven by large addressable market opportunity Steady Margin • Continued scale and operational leverage Expansion • Focus on operational efficiencies • 100+% free cash flow
Slide 12: High quality revenue stream
High quality revenue stream Recurring Fee (59%) Event-Driven Fee (5%) 14% 6 yrs ~$200M CAGR (FY14-17) Average Contract Annual Average Length $0.2B (FY15-FY17) $2.5B 5% 98% $1.6B Organic CAGR Revenue (FY14-17) Retention Rate Distribution (38%) <10% Gross Margin $4.1B Total FY17 Revenues Note: Revenue
Slide 13: Two strong and growing segments
Two strong and growing segments INVESTOR COMMUNICATION SOLUTIONS GLOBAL TECHNOLOGY & OPERATIONS $3.4B Total Revenue $0.8B Total Revenue • Recurring Fee Revenue $1.6B $1.6B • Event-Driven $0.8B Revenue • Distribution $0.2B • Recurring Fee Revenue Revenue 6% 12.3% 6% 21.1% Organic Growth Margin Organi
Slide 14: Capital allocation priorities
Capital allocation priorities • Target ~45% payout ratio1 Strong Returned to shareholders • Top quartile payout ratio compared to Dividend during FY15 – FY17 S&P 500 and leads peer group $0.4B • Compelling returns Disciplined Invested in M&A • Accretive to EPS within first 12-18 months M&A $0.8B dur
Slide 15: FY17 - FY20 three year growth objectives
FY17 - FY20 three year growth objectives (As of 2/8/18) Winning formula for top quartile TSR Recurring Fee Revenue Growth 7-9% Total Revenue Growth 5-7% Adjusted Op Income Margin Expansion ~50bps/yr Adjusted EPS Growth 14-18% Note: Compound annual growth rates (CAGRs), except margin. Three year Adju
Broadridge Financial Solutions — Investor Presentation (June 2018) on 6ix