Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q1 FY2019 Earnings Presentation
20 slides from Broadridge Financial Solutions's earnings presentation, Nov 6, 2018
Slide 1: Earnings Webcast & Conference Call First Quarter Fiscal Year 2019
EXHIBIT 99.2 Earnings Webcast & Conference Call First Quarter Fiscal Year 2019 © 2018 | ‹#›
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of BroadridgeFinancial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform A
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: Highlights
Highlights ⦁ Solid first quarter 2019 financial results • Recurring fee revenues rose 5% • Event-driven revenues up 30% to $77 million • Strong Operating Income growth ⦁ Operating Income up 17% to $100 million ⦁ Adjusted Operating income up 15% to $123 million • Diluted EPS growth of 52% and Adjuste
Slide 5: UBS Joining Broadridge Wealth Platform
UBS Joining Broadridge Wealth Platform ⦁ Signing UBS as anchor client represents a major milestone in creating a Wealth Management franchise • Broadridge Wealth Platform will provide next-gen mission critical infrastructure to wealth managers • Broadridge's platform will bring together capabilities
Slide 6: Business Update
Business Update ⦁ Closed sales of $18 million in first quarter •UBS deal expected to contribute meaningfully to FY2019 Closed sales ⦁ ICS Recurring fee revenues up 4% • Recurring fee revenue growth of 14% excluding Customer Communications driven by strong growth in mutual fund interims • Event-drive
Slide 7: First Quarter 2019 Revenue Growth Drivers
First Quarter 2019 Revenue Growth Drivers ▪ First Quarter 2019 Total revenues grew 5% to $973 million +2% +1% +3% +5% 0% $973M $925M ▪ First Quarter 2019 Recurring fee revenues grew 5% to $575 million Organic Growth: 4% +7% 0% +1% +5% -3% -1% $575M $548M Note: Amounts may not sum due to rounding 201
Slide 8: First Quarter 2019 GAAP and Adjusted Operating Income and Adjusted EPS
First Quarter 2019 GAAP and Adjusted Operating Income and Adjusted EPS $ in millions, except per share amounts Year-over-Year Change in Operating Income Year-over-Year Change in EPS and and Adjusted Operating Income Adjusted EPS +46% +15% +17% +52% 2018 | 8
Slide 9: Segment Results
Segment Results ($ in millions) Investor Communication Solutions ("ICS") 1Q 2018 1Q 2019 Change Recurring fee revenues $333 $347 4% Event-driven fee revenues 59 77 30% Distribution revenues 334 341 2% Total revenues $726 $766 5% Earnings before income taxes $46 $59 29% Pre-tax margins 6.3% 7.7% Glob
Slide 10: Capital Allocation and Summary Balance Sheet
Capital Allocation and Summary Balance Sheet $ in millions Select Uses of Cash in Summary Balance Sheet First Quarter 2019 as of September 30, 2018 Assets Cash and cash equivalents $ 205 Other assets 3,177 Total assets $ 3,382 Liabilities and Stockholders' Equity Total debt outstanding $ 1,144 Other
Slide 11: Fiscal Year 2019 Guidance - Reaffirmed
Fiscal Year 2019 Guidance - Reaffirmed Recurring fee revenue growth 5 - 7% Total revenue growth 3 - 5% Operating income margin - GAAP ~14.5% Adjusted Operating income margin - Non-GAAP ~16.5% Diluted earnings per share growth 12 - 16% Adjusted earnings per share growth - Non-GAAP 9 - 13% Free cash f
Slide 12: "The Best is Yet to Come"
"The Best is Yet to Come" ⦁ Broadridge has the right strategy, products and investment focus to deliver value to clients today and well into the future ⦁ Deep and experienced leadership team, led by Tim Gokey, with proven track record of execution ⦁ Strong culture, built on service-profit chain, tha
Slide 13: Appendix
Appendix Bi Broadridge ois | 13
Slide 14: Tax Act & ETB Impact
Tax Act & ETB Impact 2018 2019 2018 2019 FY 1Q 1Q FY $ in millions Outlook Earnings before income taxes $74.3 $89.3 $561.0 Provision for income taxes (Excluding ETB and non- recurring gains & charges) $26.0 $19.6 $158.6 Net Tax Charges — — 15.4 — Excess Tax Benefits "ETB" (1.5) (7.0) (40.9) ~(25) Pr
Slide 15: Pro Forma Accounting Change Impact to FY 2018 Total Revenues
Pro Forma Accounting Change Impact to FY 2018 Total Revenues 2018 $ in millions Q1 Q2 Q3 Q4 FY Revenues As Reported Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $ 2,610.4 Event-Driven Fee Revenues 59.3 97.3 66.5 60.7 283.9 Distribution Revenues 334.2 370.4 385.4 422.9 1,512.9 FX (16.5) (17
Slide 16: Pro Forma Accounting Change Impact to FY 2018 Recurring Revenues
Pro Forma Accounting Change Impact to FY 2018 Recurring Revenues 2018 $ in millions Q1 Q2 Q3 Q4 FY Recurring Fee Revenues As Reported ICS $ 332.9 $ 334.4 $ 403.5 $ 628.0 $ 1,698.9 GTO 214.9 228.0 235.2 233.5 911.6 Total Recurring Fee Revenues $ 547.8 $ 562.4 $ 638.6 $ 861.5 $ 2,610.4 % of FY Recurri
Slide 17: Supplemental Reporting Detail - Product Line Reporting
Supplemental Reporting Detail - Product Line Reporting1 $ in millions Q1FY18 Q2FY18 Q3FY18 Q4FY18 FY 2018 Q1FY19 Investor Communication Solutions ("ICS") Equity proxy $ 30.0 $ 33.6 $ 45.1 $ 298.1 $ 406.8 $ 31.0 Mutual fund & ETF interims 49.2 46.9 67.0 58.3 221.4 57.8 Customer communications & fulfi
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited - Note: Amounts may not sum due to rounding) $ in millions, except per share amounts Three Months Ended September 30, 2018 2017 Operating income (GAAP) $ 100.1 $ 85.2 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual P
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Unaudited - Note: Amounts may not sum due to rounding) Three Months Ended September 30, 2018 2017 Diluted earnings per share (GAAP) $ 0.64 $ 0.42 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 0.18 0.16 Acquisition a
Slide 20: Broadridge Investor Relations
Broadridge Investor Relations W. Edings Thibault Investor Relations Tel: 516-472-5129 Email: edings.thibault@broadridge.com 2018 | 20
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