Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Q2 FY2017 Earnings Presentation
18 slides from Broadridge Financial Solutions's earnings presentation, Feb 8, 2017
Slide 1: Earnings Webcast & Conference Call Second Quarter and First Six Months of Fiscal 2017
1 © 2014 | Earnings Webcast & Conference Call Second Quarter and First Six Months of Fiscal 2017 February 8, 2017 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 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 Securities Litigation Refor
Slide 3: Use of Non-GAAP Financial Measures
3 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. GAAP except where otherwise noted. In certain circumstances, results have been presented that are n
Slide 4: Highlights
4 Highlights Solid 2Q financial results Solid recurring fee revenue growth across both ICS and GTO segments Continued momentum in Closed sales NACC integration on track Updating guidance for fiscal 2017 o Reaffirming guidance for Recurring revenue, Adjusted EPS and Closed sales o Reducing
Slide 5: Second Quarter 2017 Summary
5 Second Quarter 2017 Summary Total revenue growth of 40% and recurring fee revenue growth of 34% o NACC acquisition drove much of the growth o 6% organic growth of recurring fee revenue Continued growth in Adjusted operating income and Adjusted EPS o Profit growth driven by acquisition of NACC
Slide 6: Business Update
6 Business Update Broad momentum across both GTO and ICS o Reflects breadth of products and focus on clients Record Closed sales highlights growing recognition of power of Broadridge’s utility solutions o Tier one bank adopts BR’s SaaS equity trade processing platform o Signed another major brok
Slide 7: 2Q 2017 Revenue Growth Drivers
7 2Q16 Recurring Revs. Closed Sales Client Losses Internal Growth Acquisitions 2Q17 Recurring Revs. $ 399 M $536 M+7% -3% 2% +28% +34% 2Q16 Total Revs. Recurring Event Driven Distribution FX 2Q17 Total Revs. $893 M +21% -4% 23% $639 M -1% +40% 2Q 2017 Revenue Growth Drivers • Second Quarter 2017 Tot
Slide 8: 1H 2017 Revenue Growth Drivers
8 1H16 Recurring Revs. Closed Sales Client Losses Internal Growth Acquisitions 1H17 Recurring Revs. $792 M $1,053 M +6% -3% 1% +28% +33% 1H16 Total Revs. Recurring Event Driven Distribution Other 1H17 Total Revs. $1.8 Bn +21% -2% 27% $1.2 Bn -1% +45% 1H 2017 Revenue Growth Drivers • Six Months Fisca
Slide 9: Second Quarter 2017 Operating Income and EPS Comparison
9 $0.33 $0.25 $0.38 $0.39 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 2Q 2016 2Q 2017 Diluted EPS Adjusted EPS +3% -24%Second Quarter 2017 Operating Income and EPS Comparison $ in millions 2Q 2017 Change in Operating Income and Adjusted Operating Income 2Q 2017 Change in EPS and Adjusted EPS $70 $59 $80 $84
Slide 10: Six Months Fiscal Year 2017 Operating Income and EPS Comparison
10 $0.61 $0.52 $0.71 $0.75 $0.40 $0.50 $0.60 $0.70 $0.80 1H 2016 1H 2017 Diluted EPS Adjusted EPS +6% -15% Six Months Fiscal Year 2017 Operating Income and EPS Comparison $ in millions Six Months Fiscal 2017 Change in Operating Income and Adjusted Operating Income Six Months Fiscal 2017 Change in EP
Slide 11: Segment Results
11 Segment Results Quarter Ended December 31, % Six Months Ended December 31, % $ in millions 2016 2015 Change 2016 2015 Change Investor Communication Solutions ("ICS") Recurring Fee Revenues $334.3 $218.6 53% $663.4 $434.5 53% Total Revenues 709.6 471.7 50% 1,432.9 901.4 59% Earnings before income
Slide 12: Capital Allocation and Summary Balance Sheet
12 Capital Allocation and Summary Balance Sheet Summary Balance Sheet as of 12/31/2016 Select Uses of Cash in 2Q 2017 • $17 million in capital expenditures and software investment • Acquisition of M&O Systems for $25 million • Share repurchases of $60 million net of option proceeds $ in millions Ass
Slide 13: Updated Fiscal Year 2017 Guidance
13 Current Prior Recurring fee revenue growth 29-31% * * Total revenue growth 40-42% 43-45% Adjusted Operating income margin – Non-GAAP ~15% * * Diluted earnings per share growth 2-7% 9-14% Adjusted earnings per share growth – Non-GAAP 12-17% * * Free cash flow – Non-GAAP $350-$400M * * Closed sales
Slide 14: Closing Summary
14 Closing Summary Solid first half of fiscal 2017 o 34% Recurring fee revenue growth, including 6% organic growth o 18% increase in Closed sales in first six months of the fiscal year Record sales and strong pipeline highlight breadth of product line and multiple paths to success Focused on s
Slide 15: Appendix
15 Appendix
Slide 16: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
16 Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three Months Ended December 31, Six Months Ended December 31, $ in millions, except per share figures 2016 2015 2016 2015 Operating income (GAAP) $ 58.8 $ 70.2 $ 124.9 $ 129.3 Adjustments: Amortization of Acquired Intangibles and Purchased I
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
17 Reconciliation of GAAP to Non-GAAP Measures $ in millions Six Months Ended December 31, 2016 2015 Net cash flows (used in) provided by operating activities (GAAP) $ (5.5 ) $ 42.6 Capital expenditures and Software purchases and capitalized internal use software (32.0 ) (36.9 ) Free cash flow (Non-
Slide 18: Fiscal Year 2017 Guidance
18 Fiscal Year 2017 Guidance Adjusted Earnings Per Share Growth Rate (1) Diluted earnings per share (GAAP) 2% - 7% Adjusted earnings per share (Non-GAAP) 12% - 17% Adjusted Operating Income Margin (2) Operating income margin % (GAAP) ~13% Adjusted Operating income margin % (Non-GAAP) ~15% Free Cash
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