Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q3 FY2011 Earnings Presentation
27 slides from Broadridge Financial Solutions's earnings presentation, May 10, 2011
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Third Quarter Fiscal Year 2011 © 2011 Broadridge Financial Solutions, Inc. Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. May 10, 2011
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 and Key Topics Rich Daly, CEO Third Quarter Fiscal Year 2011 Dan Sheldon, CFO Results and Full Year Guidance Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Rick Rodick, VP Investor Relations Closing Remarks Rich Daly, CEO 2
Slide 4: Opening Remarks Key Topics
Opening Remarks Key Topics: Financial Highlights Closed Sales and Revenue Growth Opportunities 3
Slide 5: Financial Highlights
Financial Highlights Revenues for the quarter were up 7% and in line with expectations Driven primarily by acquisitions, the Penson outsourcing services agreement, higher volumes and revenues from net new business (defined as closed sales less client losses), offset by lower event-driven (ED) revenu
Slide 6: Closed Sales & Revenue Growth Opportunities
Closed Sales & Revenue Growth Opportunities Closed sales for the quarter were $20M Year-to-date closed sales of $92M Year-to-date recurring revenue closed sales have been solid at $72M Full year closed sales guidance is $135-180M and recurring revenue closed sales guidance remains at $110-150M Recur
Slide 7: Access Data Business Opportunity
Access Data Business Opportunity Old Process Broker 1 Fund 1 Broker 2 Fund 2 Total Market Size Opportunity Broker 3 Fund 3 BR Process Broker > Fund > $400 - 500 Million SCHWAB Fund 1 Broker 2 Fund 2 Broker 3 Fund 3 Broker 4 Fund 4 BROADRIDGE Broker 5 Fund 5 Solution Broker 6 Solution Module Fund 6 M
Slide 8: Revenue Growth Drivers
Revenue Growth Drivers Historical CAGR 3Q 3Q YTD Forecast (FY05-FY10) FY11 FY11 FY11 6% Total Revenue Growth 7% (5)% (3)-(2)% 4% Closed Sales (Recurring) 3% 2% 2% (2)% Client Losses (1)% (1)% (1)% 2% Net New Business 2% 1% 1% (a) 3% Internal Growth 1% 1% 0-1% 0% Acq/FX/Other 9% 5% 5% 5% Total Recurr
Slide 9: Segment Results & Forecast – Investor Communication Solutions
Segment Results & Forecast – Investor Communication Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) Q3: $369M/ 3% $30M/ 8% 8.2%/ 40 bps YTD: $942M/ (11)% $39M/ (62)% 4.1%/ (560) bps FY11: $1,549 to 1,558M / (7)% $210 to 219M / (23) to (20)% 13.5 to 14.1% / (280) to (220) bps
Slide 10: Segment Results & Forecast – Securities Processing Solutions
Segment Results & Forecast – Securities Processing Solutions Revenue/Growth EBIT/Growth (Non-GAAP) Margin/Growth (Non-GAAP) Q3 : $154M / +15% $27M / +11% 17.6% / (70) bps YTD: $442M / +11% $67M / (8)% 15.2% / (330) bps FY11: $593 to 599M / +11 to 12% $85 to 90M / (14) to (9)% 14.3 to 15.1% / (420) t
Slide 11: FY11 Continuing Operations Financial Guidance Summary
Broadridge - FY11 Continuing Operations Financial Guidance Summary Revenue growth in the range of (3)-(2)% Closed sales forecast for the year at $135-180M (Recurring $110-150M) Non-GAAP Earnings before interest and taxes margin of 12.7-13.4% Diluted Earnings Per Share: GAAP EPS (continuing operation
Slide 12: Summary
Summary We are staying the course Third quarter results were solid Core recurring revenue is strong and performed as expected Event-driven revenues remain weak We continue to make good progress on our three strategic initiatives IBM, Penson and MSSB Strong client revenue retention rate of 99% Closed
Slide 13: Q&A
Q&A There are no slides during this portion of the presentation 12
Slide 14: Closing Comments
Closing Comments There are no slides during this portion of the presentation 13
Slide 15: Appendix
Ce ee Appendix Appendix 14 Bs Broadridge
Slide 16: FY11 Financial Guidance
FY11 Financial Guidance 2Q11 YTD 2H11 FY11 FY12 FY13 Figures in millions, except EPS Actual Mid-Point Guidance Mid-Point Guidance Key Initiatives (A) Key Initiatives (A) Revenues EPS Revenues EPS Revenues EPS Revenues EPS Revenues EPS FY10 (GAAP) $ 968 $ 0.56 $ 1,241 $ 1.06 $ 2,209 $ 1.62 Core Busin
Slide 17: Segment Results & Forecast – Other & Foreign Exchange (FX)
Segment Results & Forecast – Other & Foreign Exchange (FX) FY11 Range 3Q11 3Q11 YTD Low High Other Fees Revenue $0M $0M $1M $1M Other Fees Margin $0M $0M $1M $1M Interest Expense $(2)M $(6)M $(10)M $(10)M Corp. Expenses & Investments $(7)M $(17)M $(28)M $(31)M FX - P&L - Revenue $4M $7M $7M $14M - E
Slide 18: Broadridge 3Q and YTD from Continuing Operations
Broadridge 3Q and YTD from Continuing Operations Revenue ($ in millions) Earnings Revenue ($ in millions) Earnings FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 Q3 Q3 Q3 Q3 Q3 YTD Q3 YTD Q3 YTD Q3 YTD $356 $369 ICS $28 $30 $1,060 $942 ICS $102 $39 6% 3% Growth % / Margin % 7.8% 8.2% 12% -11% Growth % / Ma
Slide 19: Broadridge FY11 Guidance from Continuing Operations
Broadridge FY11 Guidance from Continuing Operations Revenue ($ in millions) Earnings FY10 FY11 Range FY10 FY11 Range Actual Low High Actual Low High $1,670 $1,549 $1,558 ICS $273 $210 $219 9% -7% -7% Growth % / Margin % 16.3% 13.5% 14.1% $536 $593 $599 SPS $99 $85 $90 -4% 11% 12% Growth % / Margin %
Slide 20: Cash Flow – 3Q11 Results and FY11 Forecast
Cash Flow – 3Q11 Results and FY11 Forecast Unaudited (In millions) Nine Months Ended FY11 Range (a) March 2011 Low High Free Cash Flow (Non-GAAP) : Net earnings from continuing operations (GAAP) $ 57 $ 166 $ 179 Depreciation and amortization (includes other LT assets) 51 65 75 Stock-based compensati
Slide 21: Closed Sales to Revenue Contribution
Closed Sales to Revenue Contribution ($ in millions) Forecast (B) (A) Recurring FY09 FY10 FY11 (C) ICS $55 $80 $65-100 ~ Revenue Contribution Year 1-3 55% 35% 10% 50% 40% 10% 20% 50% 15% SPS $30 $40 $45-50 ~ Revenue Contribution Year 1-3 33% 67% 0% 10% 40% 50% 10% 20% 60% Event-Driven $45 $55 $25-30
Slide 22: Revenues and Closed Sales FY05-FY11
Revenues and Closed Sales FY05-FY11 ($ in millions) FY05-10 Forecast FY10-11 Recurring Fee Revenues FY05 FY06 FY07 FY08 FY09 FY10 CAGR FY11 Growth Rates ICS $ 414 $ 480 $ 481 $ 521 $ 547 $ 575 7% $607-612 ~6% Growth 16% 0% 8% 5% 5% SPS $ 459 $ 458 $ 509 $ 515 $ 537 $ 513 2% $521-527 2-3% Growth 0% 1
Slide 23: Reconciliation of Non-GAAP to GAAP Measures
Reconciliation of Non-GAAP to GAAP Measures EBIT Reconciliation 3Q10 3Q11 YTD10 YTD11 FY10 FY11 Range (a) ($ in millions) Actual Actual Actual Actual Actual Low High EBIT (Non-GAAP)* $51 $53 $167 $95 $352 $274 $291 Margin % 10.4% 10.1% 11.5% 6.8% 15.9% 12.7% 13.4% Interest & Other ($3) ($2) ($8) ($6
Slide 24: ICS Key Segment Revenue Stats
ICS Key Segment Revenue Stats $ in millions RC= Recurring Fee Revenues 3Q10 3Q11 FY10 YTD FY11 YTD Type ED= Event-Driven Proxy Equities $ 28.3 $ 31.1 $ 81.4 $ 81.2 RC Stock Record Position Growth -4% 0% -4% -1% Pieces 27.2 25.6 82.2 69.6 Mutual Funds $ 21.7 $ 12.8 $ 120.5 $ 30.1 ED Pieces 28.2 16.9
Slide 25: SPS and Outsourcing Key Segment Revenue Stats
SPS and Outsourcing Key Segment Revenue Stats $ in millions 3Q10 3Q11 YTD10 YTD11 Type RC= Recurring ED= Event-Driven Equity Transaction-Based Equity Trades $ 57.6 $ 64.4 $ 176.5 $ 178.6 RC Internal Trade Volume (1) 1,532 1,725 1,497 1,541 Internal Trade Growth 0% 13% -3% 3% Trade Volume (Average Tr
Slide 26: 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
Slide 27: Use of Material Contained Herein
Use of Material 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 acc
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