Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 FY2009 Earnings Presentation
22 slides from Broadridge Financial Solutions's earnings presentation, Feb 3, 2009
Slide 1: Earnings Webcast & Conference Call
Exhibit 99.2 Broadridge Financial Solutions, Inc. Earnings Webcast & Conference Call Second Quarter Fiscal Year 2009 February 3, 2009
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 Rich Daly, CEO Second Quarter FY 2009 Results and Dan Sheldon, CFO Cash Flow Fiscal Year 2009 Guidance Summary Rich Daly, CEO Summary Rich Daly, CEO Q&A Rich Daly, CEO Dan Sheldon, CFO Marvin Sims, VP Investor Relations Closing Remarks Rich Daly, CEO 2
Slide 4: Opening Remarks
Opening Remarks Key Topics: • Financial results for the second quarter and reaffirmation of full fiscal year 2009 earnings per share guidance • A review of sales performance • General overview of current market dynamics and impact on Broadridge 3
Slide 5: Opening Remarks – Key Topics: Second Quarter FY09 Financial Results
Opening Remarks – Key Topics Second Quarter FY09 Financial Results • Financial performance for the quarter was better than expectations, given the current challenging market conditions • Revenues for Operating Segments continue to grow, driven by recurring revenues • Business fundamentals continue t
Slide 6: Opening Remarks – Key Topics: Sales Performance Overview
Opening Remarks – Key Topics Sales Performance Overview • Closed sales for quarter up 36% and year-to-date up 26% • Recurring closed sales are approximately 80% of total closed sales year-to-date, and up 100% over prior year • Sales pipeline remains strong and is still building momentum • Despite hi
Slide 7: Opening Remarks – Key Topics: General Market Conditions
Opening Remarks – Key Topics General Market Conditions Headwinds: • Headwinds remain in the financial services market and are creating short-term revenue slow down, but should also create long-term opportunities • Expecting less trade volumes and lower Mutual Fund Proxy activity in the second half o
Slide 8: Broadridge Results – Q2 & YTD FY 2009
Broadridge Results –Q2 & YTD FY 2009 Key Highlights: Q2 - Revenue 1% to $459M and YTD 2% to $932M (Operating Segments 2% for Q2 and 3% YTD) • Sales contributed +4% (YTD = +3%) • Losses reduced growth by -1% (YTD = -1%) • Internal Growth contributed +2% (YTD = +2%) • Event-driven activity reduced gro
Slide 9: Segment Results – Investor Communication Solutions
Segment Results – Investor Communication Solutions 2Q09 2Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $296 $609 $1,544 $1,577 Growth Rate -3% 1% -2% 0% Fee Revenues $144 $292 $778 $804 Growth Rate -2% 1% 1% 5% Recurring (RC) 7% 8% 7% 11% Event-driven (ED) -15% -9% -12% -9% Dist
Slide 10: Segment Results – Securities Processing Solutions
Segment Results – Securities Processing Solutions 2Q09 2Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $139 $273 $527 $535 Growth Rate 9% 8% 2% 4% Margin 28.8% 28.4% 24.6% 25.7% Margin Basis Points (bps) Change 140 bps 90 bps 210 bps 100 bps Q2 FY09 Key Highlights : Revenues (Q2
Slide 11: Segment Results – Clearing and Outsourcing Solutions
Segment Results – Clearing and Outsourcing Solutions 2Q09 2Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Revenues $29 $52 $106 $108 Growth Rate 16% 5% 11% 12% Pre-tax Loss -$2 -$5 -$7 -$6 Q2 FY09 Key Highlights: Revenues (Q2 16% and YTD 5%) • Q2 - Net New Business contributed 31% or $8M
Slide 12: Segment Results – Other & Foreign Exchange (FX)
Segment Results – Other & Foreign Exchange (FX) 2Q09 2Q09 YTD FY09 Range ($ in millions) Actual Actual Low High Other Fees Revenues $0 $0 $1 $1 Other Fees Margin $0 $0 $1 $1 FX Revenues -$5 -$3 -$26 -$26 FX P&L Margin -$1 $0 -$6 -$6 Other Interest Expense -$3 $0 -$8 -$8 Corporate Expenses & Investme
Slide 13: Fiscal Year 2009 Grow-Over Discussion
Fiscal Year 2009 Grow-Over Discussion Second quarter of FY09 tough EPS compare given grow-over items FY08 Grow-Overs ($ in millions) Q1 Q2 Q3 Q4 FY09 Actual Actual Forecast Forecast Other- Corporate/Investments Termination Fees (2) (5) 0 (1) (8) Corporate Build (4) (4) 0 0 (8) Investments (3) (3) (3
Slide 14: Broadridge Cash Flow – Q2 FY 2009 and FY 2009 Forecast
Broadridge Cash Flow – Q2 FY 2009 and FY 2009 Forecast Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP Unaudited (In millions) Six Months Ended FY09 Range December 2008 Low High Ridge Clearing All Other All Other Processing Financing Processing Broadridge Activities Cal
Slide 15: Broadridge - FY 2009 Financial Guidance Summary
Broadridge - FY 2009 Financial Guidance Summary Revenue growth of -3% to flat (-1% to 2% fee only) Operating segment revenue growth of flat to 2% (2% to 5% fee only) Earnings before interest and taxes margin of 16.2% - 17.1% Diluted EPS in the range of: GAAP EPS $1.49 - $1.59 Non-GAAP EPS $1.45 - $1
Slide 16: Summary
Summary Broadridge is weathering the storm as solid second quarter results are better than expectations Majority of Broadridge business model continues to be resilient as key recurring revenue metrics remain stable Navigated the recent financial services industry consolidation well; to- date providi
Slide 17: Q&A
Q&A There are no slides during this portion of the presentation 16
Slide 18: Closing Comments
Closing Comments There are no slides during this portion of the presentation 17
Slide 19: Appendix
Ce ee Appendix Appendix 18 Ba Broadridge
Slide 20: Closed Sales-To-Revenue Overview
Closed Sales-To-Revenue Overview Closed Sales-To-Revenue General Conversion Time Frames FY 09 Closed Sales-to-Revenue Conversion Segment Sales Categories Sales Plan General Time Frames Investor Communication Solutions $90M - $100M Registered Mutual Fund Sales 1 to 6 Months Registered Equity Sales Is
Slide 21: Segments – FY 2009 Financial Guidance Summary
Segments – FY 2009 Financial Guidance Summary Investor Communication: Revenues -2% to Flat Margins 16.5% - 17.3% Sales $90M - $100M Securities Processing: Revenues 2% - 4% Margins 24.6% - 25.7% Clearing and Outsourcing: Revenues 11% - 12% Operating losses at $6M - $7M Sales Plan $70M - $80M for the
Slide 22: Use of Materials Contained Herein
Use of Materials 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 ac
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