BROADRIDGE FINANCIAL SOLUTIONS, INC. - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - BROADRIDGE FINANCIAL SOLUTIONS, INC.	d771938d8k.htm
EX-99.1 - EX-99.1 - BROADRIDGE FINANCIAL SOLUTIONS, INC.	d771938dex991.htm

Earnings Webcast &

Conference Call

Fourth Quarter and Fiscal Year 2014

August 7, 2014

Exhibit 99.2

Forward-Looking Statements

Explanation of the Company’s Use of Non-GAAP Financial Measures

Use of Material Contained Herein

2014 |

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 accuracy is your

responsibility. Broadridge assumes no duty to update or revise the information contained in this presentation. You may reproduce

information contained in this presentation provided you do not alter, edit, or delete any of the content and provided you identify the

source of the information as Broadridge Financial Solutions, Inc., which owns the copyright.

Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc.

In certain circumstances, results have been presented that are not generally accepted accounting principles measures (“Non-GAAP”)

and should be viewed in addition to, and not as a substitute for, the Company’s reported results. These Non-GAAP measures are

indicators that management uses to provide additional meaningful

comparisons between current results and prior reported results,

and

as a basis for planning and forecasting for future periods. In addition, Broadridge believes this Non-GAAP information helps investors

understand the effect of these items on reported results and provides a better representation of the Company’s performance.

Accompanying this presentation

is a reconciliation of these Non-GAAP measures to the comparable GAAP measures.

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, and which may be identified by the use of words such as “expects,”

“assumes,”

“projects,”

“anticipates,”

“estimates,”

“we

believe,”

“could be”

and other words of similar meaning, are forward-looking statements. In particular, information appearing in the

“Fiscal Year 2014 Financial Guidance”

section are forward-looking statements. These statements are based on management’s

expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those

expressed. These risks and uncertainties include those risk factors discussed in Part I, “Item 1A. Risk Factors”

of our Annual Report on

Form 10-K for the fiscal year ended June 30, 2014 (the “2014 Annual Report”), as they may be updated in any future reports filed with the

Securities and Exchange Commission. All forward-looking statements speak only as of the date of this presentation and are expressly

qualified in their entirety by reference to the factors discussed in the 2014 Annual Report. These risks include: the success of

Broadridge

in retaining and selling additional services to its existing clients and in obtaining new clients; Broadridge’s reliance on a relatively small

number of clients, the continued financial health of those clients, and the continued use by such clients of Broadridge’s services with

favorable pricing terms; changes in laws and regulations affecting Broadridge’s clients or the services provided by Broadridge; declines in

participation and activity in the securities markets; any material breach of Broadridge security affecting its clients’

customer information;

the failure of Broadridge’s outsourced data center services provider to provide the anticipated levels of service; a disaster or other

significant slowdown or failure of Broadridge’s systems or error in the performance of Broadridge’s services; overall market and economic

conditions and their impact on the securities markets; Broadridge’s failure to keep pace with changes in technology and demands of

its

clients; Broadridge’s ability to attract and retain key personnel; the impact of new

acquisitions and divestitures; and competitive

conditions. Broadridge disclaims any obligation to update or revise forward-looking statements that may be made to reflect events or

circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law.

Today’s Agenda

Opening Remarks

Rich Daly, President and CEO

Fourth Quarter and Fiscal Year 2014

Jim Young, CFO

Highlights and Segment Results

Summary

Rich Daly, President and CEO

Q&A

Rich Daly, President and CEO

Closing Remarks

Rich Daly, President and CEO

Jim Young, CFO

2014 |

Key Messages

Strong execution in FY14 generated record results and providing

momentum into FY15

Continued progress against our growth strategy

FY15 guidance reflects continued successful execution on the

activities within our control

Remain committed to capital stewardship program

Increased confidence in continuing to generate sustainable top

quartile stockholder returns

2014 |

Fiscal Year 2014 Highlights

2014 |

Strong revenue growth

Recurring revenues were up 9% primarily due to Net New Business (recurring revenue closed sales less

client losses) and strong market-based activities

Record diluted Earnings Per Share (EPS)

Non-GAAP diluted EPS of $2.25 was up 20%; GAAP diluted EPS of $2.12 was up 25%

Increased revenues, operating leverage and productivity initiatives generate margin expansion

Performance includes increased strategic investments in the business

Record recurring revenue closed sales of $127M

Headlined by a large closed sale in Q4 with Fidelity Investments for investor communications outsourcing

solutions

Robust sales pipeline provides for further large deal opportunities

Continued expansion of Emerging and Acquired (E&A) solutions

Inlet joint venture with Pitney Bowes to address industry need for digital solutions

Bonaire

and

Emerald

acquisitions

expand

capabilities

targeted

markets

Acquisitions portfolio contributed ~$220M to fee revenue and ~$75M to EBITDA (Non-GAAP)

Board increased annual dividend by 29% to $1.08 per share

Increased dividend seven consecutive years

(CAGR ~24%)

Increased targeted payout ratio to 45% from 40% of FY14 Non-GAAP Net Income

Board authorized an additional 6.2M shares for a total of 10M shares of common stock for repurchase

Fiscal Year 2015 Guidance

2014 |

Recurring revenue growth of 5-7% (total revenues 4-6%)

Market-based activities not assumed to contribute at the

same levels as FY14

Continued exceptional client revenue retention rate of 98%

Non-GAAP diluted EPS of $2.42-2.52 (8-12% growth)

Recurring revenue closed sales of $110-150M

Free cash flows of $320M-$370M

GAAP EPS of $2.29-2.39 (8-13% growth)

Balancing

controllable

growth

with

increasing

investments

the

business

Key Financial Drivers

2014 |

Actual

FY15

FY14

Range

Growth Drivers as a % of Recurring Revenue

Closed Sales

(Recurring)

6-7%

Client

Losses

(3%)

(2%)

Net New Business

4-5%

Internal

Growth

0-1%

Organic Growth

4-6%

Acquisitions

Total Recurring Revenue Growth

5-7%

Growth Drivers as a % of Total Revenue

Recurring Revenue

3-4%

Event-Driven

(1%)

Distribution

(1%)

1-2%

FX/Other

(1%)

Total Revenue Growth

4-6%

EBIT

Margin

(Non-GAAP)

24.0%

16.4%

17.4-17.8%

EPS

(Non-GAAP)

$1.17

$2.25

$2.42-2.52

(a) Internal Growth includes SPS Equity & Fixed Income Trades, ICS Equity & Mutual Fund Stock Record Growth, Transaction Reporting, Fulfillment, and Time & Materials

(b) Event-Driven includes ICS Proxy Contest/Specials, Mutual Fund Proxy and Interim Communications

(a)

(b)

(c)

Segment Results & Forecast –

Investor Communication Solutions

2014 |

FY14 strong results from Net New Business and market-based activities

balanced by investments

FY15 guidance anticipates recurring revenue growth of 6-9%

Approximately 50% from Net New Business

Tempered by modest market-based activities contribution

Event-driven revenue in-line with prior two years

Margin growth improvement from operating leverage balanced by

increased growth investments

Recurring revenue closed sales range of $70-90M

Recurring/Growth

(Non-GAAP)

Revenue/Growth

EBIT/Growth

(Non-GAAP)

Margin/Growth

(Non-GAAP)

FY14:

FY15:

$1,963 to $1,996M / 5 to 7%

$1,867M / 6%

$947M / 11%

$1,007 to $1,030 M / 6 to 9%

$336M / 11%

18.0% / 80 bps

$368 to $380M / 10 to 13%

18.7% to 19.0% / 70-100bps

2014 |

Segment Results & Forecast –

Securities Processing Solutions

FY14 revenues up 5% with strong margin expansion

Margin driven by operating leverage and productivity improvements

balanced by investments

FY15 guidance anticipates recurring revenue growth of 2-4%

Primarily from Net New Business

Margin expansion based on productivity initiatives

Recurring revenue closed sales range of $40-60M

Revenue/Growth

EBIT/Growth

(Non-GAAP)

Margin/Growth

(Non-GAAP)

FY14:

$695M / 5%

$119M / 40%

17.1% / 420 bps

FY15:

$710M to 722M / 2 to 4%

$122M to 136M / 2 to 14%

17.2 to 18.8% / 10 to 170 bps

Closing Summary

Record financial results providing strong momentum for FY15

with both segments contributing to growth

Guidance reflects the activities within our control with a focus

growing recurring revenues from Net New Business

Continued investments in strategic growth opportunities

Remain committed to our capital stewardship program

Increased confidence in continuing to generate sustainable top

quartile stockholder returns

2014 |

2014 |

Q&A and Closing Comments

There are no slides during this portion of the presentation

Appendix

2014 |

2014 |

Segment Results & Forecast –

Other & Foreign Exchange (FX)

Corporate

Expenses:

FY14

results

were

in-line

with

full

year

guidance

range

and

included strategic investments

Interest

Expense,

net:

Reflected

higher

interest

rates

from

year

due

refinancing of term loan with senior fixed-rate notes

FY14

FY15 Range

Actual

Low

High

Corporate Expenses

$(50)M

$(42)M

$(49)M

Interest Expense, net

$(25)M

$(26)M

FX -

P&L -

Revenue

$(4)M

$(7)M

EBIT

$16M

Transaction Activity

$0M

2014 |

Broadridge Q4 and Full Year FY14

(a) FY13 Q4 excludes Restructuring Charges of $12M (after tax $8M, or $0.06 EPS impact). FY13 Full Year excludes Restructuring Charges of $20M (after tax $13M, or $0.10 EPS impact).

(b) Includes impacts of FX P&L and FX transaction activity.

(c) Represents amortization charges associated with intangible asset values as well as other deal costs associated with the Company’s acquisitions.

FY13 Full Year excludes Restructuring Charges of $20M (after tax $13M, or $0.10 EPS impact), Acquisition Amortization and Other Costs of $24M (after tax $15M, or $0.12 EPS impact) and a one time tax credit of $4M (or $0.04 EPS impact).

FY14 Q4 excludes Acquisition Amortization and Other Costs of $7M (after tax $4M, or $0.04 EPS impact) and FY14 Full Year excludes Acquisition Amortization and Other Costs of $25M (after tax $16M, or $0.13 EPS impact)

(e) FY13 represents transition costs related to termination of the Penson agreement including shutdown costs.

Revenue

FY13

FY14

FY13

FY14

Full Year

$690

$715

$1,760

$1,867

$173

$174

$661

$695

$863

$889

$2,421

$2,562

($0)

($3)

$10

($4)

$865

$886

$2,431

$2,558

Earnings

FY13

FY14

FY13

FY14

Full Year

$208

$219

$302

$336

30.1%

30.6%

17.2%

18.0%

$27

$15

$85

$119

15.6%

8.6%

12.9%

17.1%

$235

$234

$387

$455

27.2%

26.3%

16.0%

17.8%

($21)

($23)

($44)

($50)

$15

$16

$219

$213

$359

$420

25.3%

24.0%

14.8%

16.4%

($5)

($6)

($15)

($25)

$24

$25

$221

$214

$367

$420

25.6%

24.1%

15.1%

16.4%

($79)

($69)

($131)

($141)

35.6%

32.3%

35.7%

33.6%

$142

$145

$236

$279

16.5%

16.3%

9.7%

10.9%

($4)

($15)

($16)

($3)

($9)

($8)

($4)

($24)

($16)

$135

$140

$212

$263

15.6%

15.8%

8.7%

10.3%

123.8

124.6

125.4

124.1

$1.15

$1.17

$1.88

$2.25

$1.09

$1.13

$1.69

$2.12

ICS

Growth % / Margin %

SPS

Growth % / Margin %

Total Segments

Margin %

Other

(a)

(b)

Total Broadridge (Non-GAAP)

(a)

Growth % / Margin %

Interest & Other

Acquisition

Amortization

and

Other

Costs

(c)

Total EBT (Non-GAAP)

(d)

Margin %

Income taxes

Tax Rate

Total Net Earnings (Non-GAAP)

(d)

Margin %

Acquisition

Amortization

and

Other

Costs

(c)

Restructuring Charges

(e)

Non-GAAP Items (Net of Taxes)

Total Net Earnings (GAAP)

Margin %

(a)

Diluted Shares

Diluted EPS (Non-GAAP)

(d)

Diluted EPS (GAAP)

(d) FY13 Q4 excludes Restructuring Charges of $12M (after tax $8M, or $0.06 EPS impact), Acquisition Amortization and Other Costs of $7M (after tax $4M, or $0.04 EPS impact) and a one time tax credit of $4M (or $0.04 EPS impact).

NOTE: Amounts in this table may not sum to totals due to rounding.

Broadridge FY15 Guidance

Revenue

FY14

FY15 Range

Actual

Low

High

$1,867

$1,963

$1,996

$695

$710

$722

$2,562

$2,673

$2,718

($0)

($4)

($7)

$2,558

$2,666

$2,711

Recurring Revenue Closed Sales

FY15 Range

Segments

Low

High

ICS

$70

$90

SPS

$40

$60

Total

$110

$150

Earnings

FY14

FY15 Range

Actual

Low

High

$336

$368

$380

18.0%

18.7%

19.0%

$119

$122

$136

17.1%

17.2%

18.8%

$455

$490

$515

17.8%

18.3%

19.0%

($50)

($42)

($49)

$16

$420

$464

$483

16.4%

17.4%

17.8%

($25)

($26)

$25

$24

$420

$462

$480

16.4%

17.3%

17.7%

($141)

($162)

($168)

33.6%

35.0%

$279

$300

$312

10.9%

11.3%

11.5%

($16)

$263

$285

$297

10.3%

10.7%

10.9%

124

$2.25

$2.42

$2.52

$2.12

$2.29

$2.39

($ in millions)

ICS

Growth % / Margin %

SPS

Growth % / Margin %

Total Segments

Margin %

Other

(a)

Total Broadridge (Non-GAAP)

Growth % / Margin %

Interest & Other

Acquisition

Amortization

and

Other

Costs

(b)

Total

EBT

(Non-GAAP)

(c)

Margin %

Income taxes

Tax Rate

Total

Net

Earnings

(Non-GAAP)

(c)

Margin %

Acquisition

Amortization

and

Other

Costs

(b)

Non-GAAP Items (Net of Taxes)

Total Net Earnings (GAAP)

Margin %

Diluted Shares

Diluted

EPS

(Non-GAAP)

(c)

Diluted EPS (GAAP)

(a) Includes impacts of FX P&L and FX Transaction Activity.

(b) Represents amortization charges associated with intangible asset values as well as other deal costs associated with the Company’s acquisitions.

(c) FY14 excludes Acquisition Amortization and Other Costs of $25M (after tax $16M or $0.13 EPS impact). FY15 excludes Acquisition Amortization and Other Costs of

$24M (after tax $16M or $0.13 EPS impact).

* Guidance does not take into consideration the effect of any future acquisitions, additional debt and/or share repurchases.

2014 |

NOTE: Amounts in this table may not sum to totals due to rounding.

Fiscal

Year Ended

Round

June 2014

Low

High

Round

Net earnings from operations (GAAP)

263.0

263

285

297

Depreciation and amortization (includes other LT assets)

97.4

100

105

Stock-based compensation expense

34.6

Other

(31.7)

(32)

(25)

(22)

Subtotal

363.3

363

395

420

Working capital changes

32.5

Long-term assets & liabilities changes

(8.0)

(8)

(25)

(15)

Net cash flows provided by operating activities

387.8

388

395

440

Cash Flows From Investing Activities

Capital expenditures and software purchases

(53.5)

(54)

(75)

(70)

Free cash flows (Non-GAAP)

334.3

334

320

370

Acquisitions

(96.9)

(97)

Stock repurchases net of options proceeds

(80.2)

(80)

Dividends paid

(96.7)

(97)

(123)

Other

21.6

Net change in cash and cash equivalents

82.1

217

272

Cash and cash equivalents, at the beginning of year

266.0

266

Cash and cash equivalents, at the end of period

348.1

348

483

538

(a) Guidance does not take into consideration the effect of any future acquisitions, additional debt and/or share repurchases.

Free Cash Flows - Non-GAAP

Unaudited

FY15 Range (a)

($ millions)

Cash Flows FY14 Results and FY15 Guidance

2014 |

Cash

Flows

From

Other

Investing

and

Financing

Activities

Free

Cash

Flows

(Non-GAAP):

Recurring Revenue Closed Sales to Revenue Contribution

($ in millions)

Closed Sales

Revenue Contribution

(a)

Backlog

(b)

Forecast

FY15

ICS

~$70-90

~$55-65

~$100-120

~Contribution to recurring revenue growth

6-7%

SPS

~$40-60

~$45-55

~$60-70

~Contribution to recurring revenue growth

6-8%

Total Recurring Revenue Closed Sales

~$110-150

~$100-120

~$160-190

~Contribution to recurring revenue growth

6-7%

(a)

Revenue from current year and prior year Closed Sales.

(b)

Closed Sales expected to convert to revenue in future years.

2014 |

Revenues and Closed Sales FY09-FY14

2014 |

($ in millions)

CAGR

FY15

Recurring Fee Revenues

FY09

FY10

FY11

FY12

FY13

FY14

FY09-FY14

Range

ICS

594

632

720

798

850

947

10%

$1,007-1,030

Growth

14%

11%

6-9%

SPS

559

536

594

655

661

695

$710-722

Growth

-4%

11%

10%

2-4%

Total Recurring Fee Revenues

1,153

1,168

1,313

1,453

1,511

1,642

$1,717-1,752

Growth

12%

11%

5-7%

Event-Driven

180

257

135

132

156

-3%

~$153

Growth

-10%

43%

-47%

-2%

18%

~(2%)

Distribution

757

781

704

755

764

$803-813

Growth

-6%

-10%

5-6%

Other/FX

(17)

(4)

~($7)

Total Revenues

2,072

2,209

2,167

2,304

2,431

2,558

$2,666-2,711

Growth

-3%

-2%

4-6%

Recurring Closed Sales

119

113

120

121

127

$110-150

Growth

16%

25%

-5%

(13)-18%

($ in millions)

FY09-14

FY15

Event-Driven Fee Revenues

(a)

FY09

FY10

FY11

FY12

FY13

FY14

CAGR

Range

Mutual Fund Proxy

150

$52

Mutual Fund Supplemental

-7%

$44

Contest/ Specials/ Other Communications

-3%

$57

Total Event-Driven Fee Revenues

180

257

135

132

156

-3%

~$153

Growth

-10%

43%

-47%

-2%

18%

-2%

Recurring Distribution Revenues

(b)

567

564

573

597

629

659

$695-705

Growth

-2%

-1%

5-6%

ED Distribution Revenues

(b)

190

217

131

107

126

105

-11%

$109

Growth

-17%

14%

-39%

-18%

17%

-16%

Total Distribution Revenues

757

781

704

755

764

$803-813

Growth

-6%

-10%

5-6%

(a) Includes reclassification of Pre-sale Fulfillment from event-driven revenues to recurring revenues.

(b) Includes reclassification of Pre-sale Fulfillment related distribution revenues from event-driven distribution to recurring distribution and Matrix

pass-through administrative services revenues from recurring fee to recurring distribution.

Reconciliation of Non-GAAP to GAAP Measures

2014 |

Reconciliation of EPS

4Q13

4Q14

FY13

FY14

FY15 Range

Actual

Low

High

Diluted EPS (Non-GAAP)

$1.15

$1.17

$1.88

$2.25

$2.42

$2.52

Acquisition Amortization and Other Costs, net of taxes

($0.04)

($0.12)

($0.13)

Restructuring Charges, net of taxes

($0.06)

$0.00

($0.10)

$0.00

Discrete tax items

$0.04

$0.00

$0.03

$0.00

Diluted EPS (GAAP)

$1.09

$1.13

$1.69

$2.12

$2.29

$2.39

Reconciliation of EBT

4Q13

4Q14

FY13

FY14

FY15 Range

($ in millions)

Actual

Low

High

Total EBT (Non-GAAP)

$221

$214

$367

$420

$462

$480

Margin %

25.6%

24.1%

15.1%

16.4%

17.3%

17.7%

Acquisition Amortization and Other Costs

($7)

($24)

($25)

($24)

Restructuring Charges

($12)

($20)

Total EBT (GAAP)

$202

$207

$323

$396

$438

$457

Margin %

23.4%

23.3%

13.3%

15.5%

16.4%

16.8%

NOTE: Amounts in this table may not sum to totals due to rounding.

Year Ended

Round

June 2014

Low

High

Free Cash Flow (Non-GAAP):

Round

Net earnings from operations (GAAP)

263.0

263

285

297

Depreciation and amortization (includes other LT assets)

97.4

100

105

Stock-based compensation expense

34.6

Other

(31.7)

(32)

(25)

(22)

Subtotal

363.3

363

395

420

Working capital changes

32.5

Long-term assets & liabilities changes

(8.0)

(8)

(25)

(15)

Net cash flows provided by operating activities

387.8

388

395

440

Cash Flows From Investing Activities

Capital expenditures and software purchases

(53.5)

(54)

(75)

(70)

Free cash flows (Non-GAAP)

334.3

334

320

370

(a) Guidance does not take into consideration the effect of any future acquisitions, additional debt and/or share repurchases.

Free Cash Flows - Non-GAAP

Unaudited

($ millions)

FY15 Range (a)

Free

Cash

Flows

(Non-GAAP):

Fiscal

ICS Key Segment Revenue Stats

RC= Recurring

ED= Event-Driven

In millions

Fee Revenues

4Q13

4Q14

FY13

FY14

Type

Proxy

Equities

211.8

225.3

296.6

313.6

Stock Record Position Growth

10%

Pieces

219.1

242.6

287.3

314.7

0.6

Mutual Funds

20.8

43.5

56.8

Pieces

29.9

29.6

66.6

77.6

0.6

Contests/Specials

8.1

6.2

15.4

17.1

Pieces

7.7

6.2

14.5

18.4

Total Proxy

240.7

252.3

355.5

387.5

Total Pieces

256.7

278.5

368.4

410.8

Notice and Access Opt-in %

68%

69%

67%

69%

Suppression %

60%

63%

59%

62%

Interims

Mutual Funds (Annual/Semi-Annual Reports/Annual Prospectuses)

33.7

46.1

133.6

172.8

Position Growth

11%

Pieces

159.4

224.4

630.2

810.6

Mutual Funds (Supplemental Prospectuses) & Other

13.6

8.3

57.6

41.1

Pieces

77.9

39.2

306.5

212.9

Total Interims

47.3

54.4

191.2

213.9

Total Pieces

237.3

263.6

936.7

1,023.5

Transaction

Transaction Reporting/Customer Communications

35.2

38.1

164.6

157.6

Reporting

Fulfillment

41.9

34.5

143.0

143.5

Emerging, Acquired

Emerging/Acquired (a)

31.4

48.3

112.2

159.4

and Other

Other (b)

15.4

13.5

39.0

40.6

Total Emerging, Acquired, and Other

46.8

61.8

151.2

200.0

Total Fee Revenues

411.9

441.1

1,005.5

1,102.5

Total Distribution Revenues (c)

277.8

273.4

754.7

764.4

Total Revenues as reported - GAAP

689.7

714.5

1,760.2

1,866.9

FY15 Ranges

Low

High

Total RC Fees

354.0

392.3

850.0

946.9

1,007

1,030

% RC Growth

11%

Total ED Fees

57.9

48.8

155.5

155.6

~$153M

Low

High

Sales

Key

Losses

-1%

Revenue

Net New Business

Drivers

Internal growth

(Recurring)

Recurring (Excluding Acquisitions)

Acquisitions

Total Recurring

11%

Low

High

Key

Recurring, Net (d)

Revenue

Event-Driven

-1%

Drivers

Distribution

-1%

(Total)

TOTAL

(a) Acquired and Emerging includes fee revenues from acquisitions (i.e. Access Data, NewRiver, Matrix, Transfer Agency, Forefield, Bonaire and Emerald) and the portfolio of emerging products (i.e. Tax Managed Services, Vote Recommendations, and Class Actions).

(b) Other includes other event-driven fee revenues such as corporate actions and development.

(c) Total Distribution Revenues primarily include pass-through revenues related to the physical mailing of Proxy, Interims, Transaction Reporting, and Fulfillment as well as Matrix administrative services.

(d) Recurring, Net includes contribution from Net New Business, Internal Growth, and Acquisitions

2014 |

SPS Key Segment Revenue Stats

RC= Recurring

ED= Event-Driven

In millions

4Q13

4Q14

FY13

FY14

Type

Equity

Transaction-Based (a)

Equity Trades

31.6

31.7

126.5

133.1

Internal Trade Volume

896

909

844

946

Internal Trade Growth

-6%

12%

Trade Volume (Average Trades per Day in '000)

944

921

903

964

Non-Transaction

Other Equity Services (b)

112.8

113.8

428.0

447.6

Total Equity

144.4

145.5

554.5

580.7

Fixed Income

Transaction-Based (a)

Fixed Income Trades

15.1

14.2

56.5

57.5

Internal Trade Volume

316

294

303

297

Internal Trade Growth

-7%

-2%

Trade Volume (Average Trades per Day in '000)

318

301

304

300

Non-Transaction

Other Fixed Income Services

13.7

14.4

49.5

56.6

Total Fixed Income

28.8

28.6

106.0

114.1

Total Net Revenue as reported - GAAP

173.2

174.1

660.5

694.8

FY15 Ranges

Low

High

Sales

10%

Losses

-3%

-6%

-2%

-4%

Key

Net New Business

Revenue

Internal growth

-3%

-2%

-4%

-1%

Drivers

Acquisitions

TOTAL

(b) Includes BPO clients.

(a) Trades do not include clients under BPO and fixed contracts.

2014 |

2014 |

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

held

"street

name"

(meaning

that

they

are

held

record

brokers

banks,

which

turn

hold

the

behalf

their

clients,

the

ultimate

beneficial

owners)

and

held

"registered

name"

(shares

registered

the

name

their

beneficial

owners).

Mutual Funds -

Refers to the proxy services we provide for funds, classes or trusts of an investment company. Mutual Funds are not required to have annual meetings.

As a result, mutual fund proxy services are driven by a "triggering event". These triggering events can be a change in directors, fee structures, investment restrictions,

or mergers of funds.

Contests -

Refers to the proxy services we provide when a separate proxy agenda is put forth by one or more stockholders that are generally in opposition to the

proposals presented by management of the company.

Specials -

Refers to the proxy services we provide in connection with non-routine stockholder meetings held outside of the normal annual meeting cycle and are

primarily driven by special events (e.g., business combinations in which the company being acquired is a public company and therefore needs the approval of its

stockholders).

Interims

Mutual

Fund

Annual/Semi-Annual/Prospectuses

–

Refers

the

services

provide

investment

companies

connection

with

information

they

are

required

distribute

periodically

their

investors.

These

reports

contain

pertinent

information

such

holdings,

fund

performance,

and

other

required

disclosures.

Mutual Funds (Supplemental Prospectuses)

–

Refers primarily to information required to be provided by mutual funds to supplement information previously provided

in an annual mutual fund prospectus (e.g., change in portfolio managers, closing funds or class of shares to investors, or restating or clarifying items in the original

prospectus). The events could occur at any time throughout the year.

Other –

Refers generally to marketing communications provided to stockholders including newsletters, investor education materials and other information not

required to be distributed by regulation.

Transaction

Reporting

Transactions Reporting

–

Refers primarily to the printing and distribution of account statements and trade confirmations to account holders, including electronic

delivery and archival services.

Fulfillment

Post-Sale Fulfillment –

Refers primarily to the distribution of mutual fund prospectuses, offering documents, and required regulatory disclosure information to

investors in connection with purchases of securities.

Pre-Sale Fulfillment –

Refers to the distribution of marketing literature, welcome kits, enrollment kits, and investor information to prospective investors, existing

stockholders and other targeted recipients on behalf of broker-dealers, mutual fund companies and 401(k) administrators.

Emerging,

Acquired,

and

Other

Communications

Emerging –

Refers to the services provided by our emerging products portfolio (e.g. Tax Services, Vote Recommendations, and Class Actions)

Acquired –

Refers to the services provided by our acquisitions portfolio (e.g. Access Data, NewRiver, Matrix, Transfer Agency, Forefield, Bonaire, and Emerald Connect)

Other –

Refers to the services we provide in connection with communication material not included in the above definitions such as non-objecting beneficial owners

(NOBO) list, and corporate actions such as tender offer transactions.

Attached files

Stock widget

Investing forum

BROADRIDGE FINANCIAL SOLUTIONS, INC. Reports