Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Presentation (December 2015)
21 slides from Broadridge Financial Solutions's investor presentation, Dec 2, 2015
Slide 1: Broadridge Financial Solutions, Inc. Investor Presentation December 2015
Broadridge Financial Solutions, Inc. Investor Presentation December 2015
Slide 2: Forward-Looking Statements
1© 2015 | Forward‐Looking Statements The Broadridge December 2015 Investor 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. St
Slide 3: Broadridge Has Deep Connections Across Four Client Segments
2© 2015 | Broadridge Has Deep Connections Across Four Client Segments • Institutional Broker‐Dealers • Bank‐Owned Institutional Broker‐Dealers • Institutional Clearing Houses • Asset Managers • Investment Managers • Mutual Funds • Retirement Plan Providers • Hedge Funds • Fund Administrators • Retai
Slide 4: Broadridge's Technology-Driven Solutions
3© 2015 | Broadridge’s Technology‐Driven Solutions • Global Trade Processing (e.g., Equity, Fixed Income, Accenture Post Trade Processing) • Enterprise Retail Trade Processing • FX&L / SWIFT Messaging / Reconciliations • Data and Analytics • Revenue and Expense Management • Managed Services • Custom
Slide 5: Broadridge's Unique Franchise in Financial Services
4© 2015 | Broadridge’s Unique Franchise in Financial Services 98% client revenue retention rate 50+ years of financial services experience of the top‐101 global banks are our clients10 #1 leading provider of U.S. beneficial proxy and prospectus, U.S. fixed income & Canadian equity processing Billion
Slide 6: We Report Two Operating Segments
5© 2015 | We Report Two Operating Segments 1. Investor Communication Solutions 2. Global Technology & Operations
Slide 7: $24B Market Opportunity Bolstered By Key Market Trends
6© 2015 | $24B Market Opportunity Bolstered By Key Market Trends Current Addressable Market Key Market Trends Mutualization Strong drive to standardize duplicative, non‐differentiating industry capabilities Digitization Digital technologies that enable lower cost, higher touch interactions Data and
Slide 8: ICS Revenue Overview By Product
7© 2015 | ICS Revenue Overview By Product1 Broad Client Base BANKS B ROKER ‐DEALERS MUTUAL F UNDS CORPORATE I S SUERS Distribution Emerging & Acquired and Other Fulfillment Transaction Reporting Interims ProxyIncrease in electronic distribution reduces postage revenue and increases margins 1. Financ
Slide 9: GTO Revenue Overview By Product
8© 2015 | GTO Revenue Overview By Product1 Strong Market Position Clears and settles in over 70 countries Processes on average over $5 trillion in equity and fixed income trades per day in U.S. and Canadian securities Provide fixed income trade processing services to 16 of the 22 primary dealers of
Slide 10: Sustainable Growth, Operational Excellence, and a Sound Capital Deployment Strategy
9© 2015 | Sustainable Growth, Operational Excellence, and a Sound Capital Deployment Strategy Will Drive Performance • Drive organic growth in current markets • Exploit adjacencies 7–10% Recurring Fee 3‐Year CAGR (FY14–FY17F) Sustainable Growth • Realize efficiencies • Increase operational leverage
Slide 11: Broadridge Has a Strong and Predictable Business Model
10© 2015 | Broadridge Has a Strong and Predictable Business Model 98% client revenue retention rate Consistently high retention rate reflects the strength of our client relationships Long‐term contracts Expanding portfolio of growth products Growth products now contribute ~25% of recurring fee reven
Slide 12: Strong Performance Provides Platform For Growth
11© 2015 | FY11 FY15 FY11‐FY15 CAGR Total Revenue $2.2B $2.7B 6% Recurring Fee Revenue $1.3B $1.7B 7% Adjusted Operating Income $305M $497M 13% Adjusted Operating Income Margin 14.1% 18.5% 110 bps average p.a. Closed Sales $113M $146M 7% Strong Performance Provides Platform For Growth Note: Unaudite
Slide 13: Revenue Growth History and Objectives
12© 2015 | FY11–FY14 Recurring Fee Revenue Net New Business 5% Internal Growth 1% Acquisitions 2% 8% Total Revenue Recurring Fee 5% Event‐Driven 0% Distribution/Other 1% 6% FY15–FY17F 5%–7% 0%–1% ~2% 7%–10% 4%–6% ~0% ~1% 5%–7% Revenue Growth History and Objectives 3‐Year compounded annual growth rat
Slide 14: Executing Our Capital Stewardship Strategy To Enhance Shareholder Value
13© 2015 | P r i o r i t y Executing Our Capital Stewardship Strategy To Enhance Shareholder Value Committed to a strong dividend Targeting ~45% of net earnings Targeting tuck‐in acquisitions to drive growth Selectively targeting about $400‐ 600M from FY15 to FY17 Share repurchases Increase targeted
Slide 15: Our Acquisition Track Record Is Strong
14© 2015 | Our Acquisition Track Record Is Strong Broadridge has invested $765M in 14 key acquisitions since becoming a public company • FY07 – FY09: Investigo, Access Data • FY10 – FY13: City Networks, StockTrans, NewRiver, Matrix, Forefield, Paladyne • FY14: Bonaire, Emerald Connect • FY15: Trade
Slide 16: Broadridge's Investment Thesis
15© 2015 | Broadridge’s Investment Thesis • Resilient, predictable business model • Large market opportunity aligned with powerful industry trends • Unique franchise and ubiquitous presence • Track record driving growth through new products and tuck‐in acquisitions • Low capital intensity and strong
Slide 17: Appendix
Appendix BG Broadridge:
Slide 18: FY16 Guidance (as of Q1 FY16 Earnings Call)
17© 2015 | FY16 Guidance (as of Q1 FY16 Earnings Call) Recurring Fee Revenue Growth 10 ‐ 12% Total Revenue Growth 8 ‐ 10% Adjusted Operating Income Margin ~18.4% Adjusted Diluted EPS Growth 8 ‐ 12% Free Cash Flows $350M ‐ $400M Closed Sales $120M ‐ $160M Note: Guidance does not take into considerati
Slide 19: Reconciliation of Non-GAAP to GAAP Measures – Adjusted Operating Income
18© 2015 | Reconciliation of Non‐GAAP to GAAP Measures – Adjusted Operating Income (Unaudited) Fiscal Year Ended June 30, 2015 2011 Adjusted Operating income (Non‐GAAP) $ 497.1 $ 304.6 Acquisition Amortization and Other Costs (30.2) (19.2) IBM Migration Costs ‐ (6.3) Operating income (GAAP) $ 466.9
Slide 20: Reconciliation of Non-GAAP to GAAP Measures – FY16 Guidance
19© 2015 | Reconciliation of Non‐GAAP to GAAP Measures – FY16 Guidance (Unaudited) Earnings Per Share Growth Rate (1) FY16 Guidance Adjusted Diluted earnings per share (Non‐GAAP) 8% ‐ 12% growth Diluted earnings per share (GAAP) 7% ‐ 12% growth Operating Income Margin (2) FY16 Guidance Adjusted Oper
Slide 21: Definitions
20© 2015 | Definitions Acquisition Amortization and Other Costs represent amortization charges associated with acquired intangible asset values as well as other deal costs associated with the Company’s acquisition activity. Adjusted Debt/EBITDAR Ratio is calculated as (Debt + 8x Rent Expense) / (EBI
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