Broadridge Financial Solutions (BR) 8-K Broadridge Reports Fourth Quarter and Fiscal 2007 Results

August 22, 2007

Earnings Webcast & Conference Call

Fiscal Year June 30, 2007

Broadridge Financial Solutions, Inc.

Exhibit 99.2

1

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, such as our

fiscal

2008

directional

view,

and

which

may

be

identified

by

the

use

of

words

like

“expects,”

“assumes,”

“projects,”

“anticipates,”

“estimates,”

“we believe,”

“could be”

and other words of

similar meaning, 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.

Factors

that

could

cause

actual

results

to

differ

materially from those contemplated by the forward-looking statements include: the ability of

Broadridge to develop brand recognition and its reputation with its clients and employees

following its separation from Automatic Data Processing, Inc. (ADP) in March 2007;

Broadridge’s success in obtaining, retaining and selling additional services to clients; the pricing

of Broadridge’s products and services; the incurrence of additional costs attributable to

Broadridge’s operations as a stand-alone public company; Broadridge’s ability to continue to

obtain

data

center

services

from

its

former

parent

company,

ADP,

as

well

as

to

obtain

transitional

services from ADP for up to one year from the date of Broadridge’s spin-off from ADP; changes

in laws affecting the investor communications services provided by Broadridge; changes in laws

regulating registered clearing agencies and broker-dealers; Broadridge’s debt levels and financing

costs, including the impact of its credit ratings on such costs;

financial market activity; changes in

technology; availability of skilled technical employees; the impact of new acquisitions and

divestitures; competitive conditions; and overall market and economic conditions.  Broadridge

disclaims any obligation to update any forward-looking statements, whether as a result of new

information, future events or otherwise.

2

Today’s Agenda

Opening Remarks

Rich Daly, CEO

Revenue Contribution Drivers

Rich Daly, CEO

4

th

Quarter and Fiscal Year 2007 Results

Dan Sheldon, CFO

Fiscal 2008 Guidance Update

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

3

Broadridge –

Revenue Composition & Drivers

FY'07 Revenue

$2,138M

Recurring Revenue

Event-driven Revenue

Recurring

Revenue

Investor Communication Solutions

80%

Investor Communication Solutions

Proxy:

Proxy: 

-

Equity Proxy Positions

-

Mutual Fund Proxy

-

Contests, Acquisitions, Mergers

Interims:

Interims:

-

Mutual Fund semi-annuals

-

Special Newsletters

and prospectuses -

Positions

-

Regulatory Change

-

Marketing Campaigns

Transaction Reporting & Fulfillment

Fulfillment -

Presale Marketing Campaigns

-

Statement & Confirm -

Images

-

Fulfillment -

Postsale

Pieces

Securities Processing Solutions

Other Communications

-

Equity Trades Per Day (TPD)

-

Reorganizations

-

Fixed Income Trades Per Day (TPD)

-

Corporate Action Activity

-

Other requests for information

Clearing

Event-driven

-

Margin Balances

Revenue

-

Clearing Trades Per Day (TPD)

Outsourcing Solutions

20

%

-

Clients

-

Accounts

Note:

Metrics

for

drivers

will

be

available

on

the

Broadridge

Investor

Relations

home

page

at

http://www.broadridge-ir.com

post

earnings

call.

4

Broadridge -

4Q07 Results

Revenue

8% to $774M

Internal growth of 8% the primary driver with additional 2% from

sales offset

by the previously disclosed losses.

Diluted EPS from Continuing Operations:

$0.82 or

14%, excluding one-time transition expenses and interest on new

debt

$0.71 or

1%, including one-time transition expenses and interest on new

debt

Pretax Earnings from Continuing Operations:

Before one-time transition expenses and interest on new debt

8% to

$183M, and Pretax Margins of 23.6% or

10 bps

Including one-time transition expenses of $14M and interest of $10M on new

debt

6% to $159M, and Pretax Margins of 20.5%,

300 bps

Tax rate

to 37.8% from 40.4%

Debt pay down of $70M

Sales for the quarter $44M (fee only), 70% recurring and 30%

Event-driven

5

Segment Results –

4Q07

Investor Communications

Revenues

8% to $616M primarily from internal growth of 9% offset by

net losses in new business of 2%

•

Stock Record Growth –

Equity Proxy 4% and Mutual Fund Interims 11%

contributed 2% of growth

•

Event-driven

revenues related to Mutual Fund Proxies and Equity Contests

were primary drivers of additional 7% of growth

Margins 24.9%

40 bps

Securities Processing

Revenues

4% to $128M, split between net new business & internal

growth

•

Equity Trades Per Day (TPD) -

26.7% to 2.5M trades per day contributed

approximately 1% of growth

Margins 26.0%

70 bps

Clearing & Outsourcing

Revenues

14% to $26M, from net new business

•

Average Margin Debit Balances

16% to $740M

Operating losses at ($1M) an improvement of $1M over prior year

Incremental Investments in new products

6

Broadridge  –

Fiscal Year 2007 Results

Revenues

11% to $2.14B

Fiscal 2007 revenue growth building blocks

:

•

Internal Growth contributed 9% (6% Event-driven revenue)

•

Sales contributed 3%

•

Losses reduced growth by 2%

•

Acquisition contributed 1%

Diluted EPS from Continuing Operations excluding one-time transition expenses

and interest on new debt

18% to $1.53

9% to $1.42 including one-time transition expenses and interest on new debt

Pretax Earnings from Continuing Operations before one-time transition expenses and

interest on new debt

14% to $345M, and Pretax Margin 16.2%,

50 basis points

Including

one-time

transition

expenses

and

interest

on

new

debt

6%

to

$321M,

and

Pretax Margin of 15.0%,

70 bps

Net Earnings from Continuing Operations excluding one-time transition expenses

and interest on new debt

18% to $212M

9% or $197M, including one-time transition expenses and interest on new debt

Tax rate

to 38.6% from 40.4%

Sales for the year $123M (fee only), 52% recurring and 48% Event-driven

7

Segment Results –

Fiscal Year 2007

Investor Communications

Revenues

11% to $1.5B, with 8% from Event-driven revenue

Margins of 14.6% flat to last year due to incremental investments and loss

of large Transaction Processing client

Stock Record Growth –

Equity Proxy flat and Mutual Fund Interims

9%

Event-driven

revenues up 33% contributing almost $120M

Securities Processing

Revenues

6% to $491M, split between net new business & internal

growth

Margin expansion to 27.6%,

150 bps

Equity Trades Per Day (TPD) -

26.7% to 2.2M TPD contributing $11M of

internal growth revenue, and net new business almost flat

Fixed Income TPD -

40% to 197K TPD net new business contributing

$10M and internal growth contributing $2M of revenue

Clearing & Outsourcing

Revenues

16% to $94M, mainly from net new business

Operating losses improved 50% from ($14M) to ($7M)

Average Margin Debit Balances

11% to $688M contributing 2% to growth

Added 21 new clients with no new client losses in fiscal year

8

Broadridge –

Fiscal Year 2008 Financial Guidance

Our FY’08 Guidance of 0% -

3% Revenue growth and (5%)–(10%)

EBIT before one-time transition expenses has not changed

FY’08 Revenue flat-to-low single digit growth vs. last few years at >

10%:

Sales of $110M -

$135M (fee only) approximately 50% contribution to

revenue growth, and recurring internal growth contributing to revenue

growth as well

Loss of 2 large clients: with no other assumed known large losses

Event-driven

revenues are flat

FY’08

EBIT

before

one-times

(5%)

–

(10%)

vs.

margin

improvements

last 4 years:

Incremental  investments in business for new products

Loss of 2 large high margin clients

Guidance assumes general market conditions remain solid but not

overly bullish or bearish

9

Broadridge -

Fiscal Year 2008 Financial Guidance

Revenue growth of 0% -

3% inclusive of impact related to Notice &

Access

Diluted Earnings Per Share

Before one-time transition expenses of $1.17 -

$1.25

After one-time transition expenses of $1.14 -

$1.20

Earnings before interest and taxes excluding one-time transition

expenses margins of 14.6% -

15.0%

Interest

expense

of

$34M

-

$38M

Effective Tax Rate of approximately 40%

One-time transition expenses between $8M-$16M (after tax $5M -

$10M)

Strong

cash

flows

with

intent

to

pay

down

debt,

pay

dividends

and

no

contemplated

share

buybacks

in

first

year

Weighted Average Diluted Shares of 141 million

10

Segments –

Fiscal Year 2008 Financial Guidance

Investor Communications

:

Revenues 1% to 5%

Margins 14.6% to 14.9%

Securities Processing

:

Revenues (3%) to (2%)

Margins 21.3% to 22.3%

Clearing & Outsourcing:

Revenues 11% to 13%

Operating profits near breakeven or slightly above with $7M improvement

over prior year

11

Summary

Solid fourth quarter results capped off a successful fiscal year

No surprises in fourth quarter that impact our step-off into Fiscal

Year 2008

Notice & Access pricing models established

Our guidance for FY’08 has not changed and assumes a stable

market

Sales:  given pipeline and activity levels, the achievement of goals

is reasonable

Investing appropriately in our business

Retention:  no other assumed known large losses

Organization:  Engaged and highly motivated to move business

forward

12

Q&A

There are no slides during this portion of the

presentation

13

Appendix

Appendix

14

GAAP to Non-GAAP Earnings Reconciliation

Broadridge

Financial Solutions, Inc.

Reconciliation of GAAP to Non-GAAP Measures

Earnings, Margins and Per Share Reconcilation

(In millions except per share and margin data)

(unaudited)

Three months ended June 30, 2007

Three months ended June 30, 2006

Earnings

from

continuing

operations

before taxes

Pretax

margins

Net

earnings

from

continuing

operations

Net

earnings

per diluted

share from

continuing

operations

Earnings

from

continuing

operations

before taxes

Pretax

margins

Net

earnings

from

continuing

operations

Net

earnings

per diluted

share from

continuing

operations

GAAP basis measures

158.5

$     

20.5%

98.7

$      

0.71

$       

168.8

$     

23.5%

100.6

$    

0.72

$       

Non-GAAP adjustments:

One-time transition expenses

14.0

1.8%

8.7

0.06

-

-

-

-

Interest on new debt

10.4

1.3%

6.6

0.05

-

-

-

-

Total Non-GAAP adjustments

24.4

3.1%

15.3

0.11

-

-

-

-

Non-GAAP measures

182.9

$     

23.6%

114.0

$    

0.82

$       

168.8

$     

23.5%

100.6

$    

0.72

$       

Twelve months ended June 30, 2007

Twelve months ended June 30, 2006

Earnings

from

continuing

operations

before taxes

Pretax

margins

Net

earnings

from

continuing

operations

Net

earnings

per diluted

share from

continuing

operations

Earnings

from

continuing

operations

before taxes

Pretax

margins

Net

earnings

from

continuing

operations

Net

earnings

per diluted

share from

continuing

operations

GAAP basis measures

320.8

$     

15.0%

197.1

$    

1.42

$       

302.7

$     

15.7%

180.5

$    

1.30

$       

Non-GAAP adjustments:

One-time transition expenses

14.0

0.7%

8.6

0.06

-

-

-

-

Interest on new debt

10.6

0.5%

6.5

0.05

-

-

-

-

Total Non-GAAP adjustments

24.6

1.2%

15.1

0.11

-

-

-

-

Non-GAAP measures

345.4

$     

16.2%

212.2

$    

1.53

$       

302.7

$     

15.7%

180.5

$    

1.30

$       

15

Intersegment Transfer Pricing Reconciliation

FY '07

FY '06

FY '07

FY '06

Investor Communication Solutions

Net revenue as reported

615.9

571.1

1,545.4

1,391.2

Transfer pricing adjustment

-

(1.1)

(2.0)

(4.5)

Net revenue as Adjusted -

Non-GAAP

615.9

570.0

1,543.4

1,386.7

EBIT as reported

153.4

139.8

226.7

204.9

Transfer pricing adjustment

-

(0.4)

(0.7)

(1.9)

EBIT as Adjusted -

Non-GAAP

153.4

139.4

226.0

203.0

Margin % as reported

24.9%

24.5%

14.7%

14.7%

Margin % as adjusted -

Non-GAAP

24.9%

24.5%

14.6%

14.6%

Securities Processing Solutions

Net revenue as reported

127.5

126.3

497.1

476.2

Transfer pricing adjustment

-

(3.2)

(6.0)

(12.4)

Net revenue as Adjusted -

Non-GAAP

127.5

123.1

491.1

463.8

EBIT as reported

33.1

33.4

139.7

129.7

Transfer pricing adjustment

-

(2.3)

(4.3)

(8.8)

EBIT as Adjusted -

Non GAAP

33.1

31.1

135.4

120.9

Margin % as reported

26.0%

26.4%

28.1%

27.2%

Margin % as adjusted -

Non-GAAP

26.0%

25.3%

27.6%

26.1%

Clearing and Outsourcing Solutions

Net revenue as reported

25.6

22.5

93.8

80.6

Transfer pricing adjustment

-

-

-

-

Net revenue as Adjusted -

Non-GAAP

25.6

22.5

93.8

80.6

EBIT as reported

(0.6)

(4.2)

(11.9)

(25.0)

Transfer pricing adjustment

-

2.7

5.0

10.7

EBIT as Adjusted -

Non-GAAP

(0.6)

(1.5)

(6.9)

(14.3)

Margin % as reported

-2.3%

-18.7%

-12.7%

-31.0%

Margin % as adjusted -

Non-GAAP

-2.3%

-6.7%

-7.4%

-17.7%

June 30

Broadridge

Financial Solutions, Inc.

Intersegment

Transfer Price Reconciliation

($ In millions except margin data)

(Unaudited)

June 30

Three months ended

Twelve months ended

16

Use of Materials Contained Herein

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