 February 7, 2008 Earnings Webcast & Conference Call Second Quarter Fiscal Year 2008 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 financial guidance, 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. 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, 2007 (the “2007 Annual Report”). Any forward-looking statements are qualified in their entirety by reference to the factors discussed in the 2007 Annual Report. These risks include: Broadridge’s success in retaining and selling additional services to its existing clients and obtaining new clients; the pricing of Broadridge’s products and services; changes in laws affecting the investor communication services provided by Broadridge; changes in laws regulating registered clearing agencies and broker-dealers; declines in trading volume, market prices, liquidity of securities markets or proprietary trading activity; Broadridge’s ability to continue to obtain data center services from its former parent company, Automatic Data Processing, Inc. (“ADP”); Broadridge’s debt levels and financing costs, including the impact of its credit ratings on such costs; the ability of Broadridge to develop brand recognition and its reputation with its clients and employees following its separation from ADP in March 2007; the incurrence of additional costs attributable to Broadridge’s operations as a stand-alone public company; Broadridge’s ability to continue to obtain transitional services from ADP for up to one year from the date of Broadridge’s March 2007 spin-off from ADP; 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 2 nd Quarter Fiscal Year 2008 Results Dan Sheldon, CFO Fiscal Year 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 Note: For a reconciliation of Non-GAAP to GAAP measures used in this presentation, please see the attached Appendix |
 3 Opening Remarks – Outline Key Topics: Financial results for the second quarter • Revenues and earnings up for quarter and year-to-date • Year-over-year growth lower this quarter, but still more than offset two previously announced large client losses • Investor Communication Solutions segment driving results for the quarter • Margin expansion driven by high percentage of internal growth revenue falling to bottom line • Sales are ahead of Plan and the pipeline is growing Market conditions during the quarter • Keep financial performance in context with market • Market turns difficult to predict • Event-driven activities and trading volumes most impacted by volatility General updates |
 4 Broadridge Results – 2Q & YTD FY 2008 Q2 - Revenues 8% to $465M (YTD 5% to $916M) Q2 Fiscal 2008 revenue growth building blocks: • Internal growth contributed 7% - (YTD = 6%) • Sales contributed 3% - (YTD = 2%) • Losses reduced growth by 5% - (YTD = 5%) • Other/FX contributed 3% - (YTD = 2%) Q2 – Pre-tax Earnings, excluding one-time transition expenses & interest on new debt 29% to $60M, & Pre-tax Margin of 13.0%, 210 bps - Non-GAAP 3% to $47M and Pre-tax Margin of 10.2%, 50 bps - GAAP YTD – Pre-tax Earnings, excluding one-time transition expenses & interest on new debt 39% to $130M, and Pre-tax Margin 14.2%, 340 bps – Non-GAAP 15% to $106M and Pre-tax Margin of 11.6% 100 bps - GAAP Q2 - Net Earnings, excluding one-time transition expenses & interest on new debt 29% to $37M - Non-GAAP 3% to $29M - GAAP YTD - Net Earnings, excluding one-time transition expenses & interest on new debt 38% to $80M – Non-GAAP 15% to $65M - GAAP |
 5 Broadridge Results – Q2 YTD FY 2008 Q2 - Diluted Earnings Per Share, excluding one-time transition expenses & interest on new debt 24% to $0.26 – Non-GAAP 5% to $0.21 – GAAP Slightly more shares outstanding YTD - Diluted Earnings Per Share, excluding one-time transition expenses & interest on new debt 36% to $0.57 – Non-GAAP 12% to $0.46 - GAAP Long-term debt pay down Q2 – Pay down of $10M YTD – Pay down of $95M YTD Tax rate to 39.0% from 38.9% Sales Plan Q2 Closed Sales $38M (fees only), 50% Recurring and 50% Event-driven YTD Closed Sales $68M (fees only), 42% Recurring and 58% Event-driven |
 6 Segments Results – 2Q & YTD FY 2008 Investor Communication Q2 Revenues 6% to $303M – Non-GAAP • Internal growth contributed 9% (Event-driven revenues contributed 3% to growth) – Q2 Stock Record Growth – Mutual Fund Interims 9% and Equity Proxy 4% • Net new business contributed -3% (Sales of 1% offset by losses of 4%) Q2 Margins of 9% 330 bps – Non-GAAP • Operating leverage and one-time expenses contributed 250 bps and a favorable distribution fee mix contributed 80 bps YTD Revenues 2% to $602M (fee only 4%) – Non-GAAP • Internal growth contributed 4% (Event-driven revenue contributed 1%) – YTD Stock Record Growth – Mutual Fund Interims 10% and Equity Proxy 3% • Net new business contributed -2% (Sales of 1% offset by losses of 3%) YTD Margins of 9.5% 270 bps, due to operating leverage, a favorable mix of distribution fees and one-times – Non-GAAP No material impact on revenues or earnings from SEC’s new Notice & Access proxy rules |
 7 Segments Results – 2Q & YTD FY 2008 Securities Processing Q2 Revenues 2% to $128M – Non-GAAP • Internal growth contributed 6% – Equity Trades Per Day (TPD) 19% to 2.5M trades per day - last 4 quarters TPD have been flat at 2.5M – Fixed Income TPD - 16% to 216K trades per day • Net new business contributed -4% (Sales of 2% offset by losses of 6%) Q2 Margins of 27.4% 140 bps – Non-GAAP • Operating leverage offset by incremental investments and one-time expense YTD Revenues 6% to $252M – Non-GAAP • Driven by internal growth of 9% and 2% from one-time non-trade revenue – Equity TPD 28% to 2.5M trades per day (Q1 37% @ 2.5M TPD) – Fixed Income TPD 18% to 216K trades per day (Q1 21% @ 216K TPD) • Net new business contributed -3% (Sales of 3% offset by losses of 6%) YTD Margins of 29.3% 230 bps – Non-GAAP • Operating leverage with respect to internal growth revenues |
 8 Segments Results – 2Q & YTD FY 2008 Clearing and Outsourcing Q2 Revenues 7% to $25M • Sales contributed 15% to growth • Previously announced TD Waterhouse loss reduced growth by 13% • Internal growth contributed 5% to growth Q2 Operating losses at ($1.6M); improvement of $0.5M over prior year – Non-GAAP YTD Revenues 10% to $49M, primarily from Sales growth of 15% YTD Operating losses reduced by 31% from ($5.2M) to ($3.6M) – Non-GAAP Other Q2 Revenues of $5M generated from one-time contract termination fees Q2 Net Other Expense of $15M is made up of: • Interest expense & other ($10M) and one-time transition expenses of ($4M) • Corporate expenses of ($6M) • Contribution from one-time revenues of $5M YTD Revenues of $7M offset expenses YTD Net Other Expense of $23M FX Q2 Revenues increased $7M and margins by $3M due to weakening of US dollar |
 9 Broadridge Cash Flow – 2Q YTD FY 2008 Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP Unaudited (In millions) Clearing & Outsourcing All Other Broadridge Calculation of Free Cash Flow (Non-GAAP) : Segment Segments Total Earnings (4)* $ 69 $ 65 $ Depreciation and amortization 2 23 25 Deferred taxes - (16) (16) Stock-based compensation expense - 15 15 Other 3 3 Subtotal (2) 94 92 Working capital changes 23 50 73 Securities clearing activities (315) - (315) Long-term assets & liabilities changes - (3) (3) Net cash flow provided by (used in) operating activities (294) 141 (153) Less: Capital expenditures - (16) (16) Intangibles - (2) (2) Free cash flow (294) $ 123 $ (171) $ Additional Information: Long-term debt payment $ (95) $ (95) $ Short-term borrowings $ 295 - $ 295 $ Dividend - $ (17) $ (17) $ Acquisitions - $ (6) $ (6) $ Note: For a reconciliation of Non-GAAP to GAAP measures please see the attached Appendix Six Months Ended December 31, 2007 - * Segment Earnings before income taxes - |
 10 Fiscal Year 2008 Guidance & Summary EPS is expected towards the higher end of guidance range of $1.30 - $1.40 per share (Non-GAAP) before one-time transition expenses, as a result of our second quarter performance and volume trends Guidance does not contemplate any major change in market Keep in mind that the fourth quarter historically represents a range of 50% - 55% of our annual net earnings Strong cash flow used to pay down debt Investing in our business for future growth Another strong quarter and it continues to be a solid start to the fiscal year, driven by Internal growth and Event-driven activities Broadridge is in control of its business and not in control of the markets |
 11 Q&A There are no slides during this portion of the presentation |
 12 Closing Comments There are no slides during this portion of the presentation |
 13 Appendix Appendix |
 14 Broadridge - Fiscal Year 2008 Financial Guidance Revenue growth of 1% - 4% Diluted Earnings Per Share Before one-time transition expenses of $1.30 - $1.40 — Non-GAAP After one-time transition expenses of $1.25 - $1.35 — Non-GAAP Earnings before interest and taxes margins (excluding one- time transition expenses) of 15.5% - 16.2% Interest expense of $34M - $36M Effective Tax Rate of approximately 39% One-time transition expenses between $12M - $14M (after tax $7M - $9M) Strong cash flows with intent to pay down debt, pay dividends, acquisitions and no contemplated share buybacks in fiscal year 2008 Diluted Weighted Average Shares of 141 million |
 15 Segments – Fiscal Year 2008 Financial Guidance Investor Communication : Revenues 1% - 3% Annual Increase Margins 15.1% - 15.5% Securities Processing : Revenues (3%) to Flat Margins 25.1% - 26.2% Clearing and Outsourcing: Revenues 8% - 11% Annual Increase Operating losses at $2M - $3M with approximately a $5M improvement over prior year |
 16 GAAP to Non-GAAP Earnings Reconciliation Note: Management believes that certain Non-GAAP (generally accepted accounting principles) measures, when presented in conjunction with comparable GAAP measures provide investors a more complete understanding of Broadridge’s underlying operational 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. These measures should be considered in addition to, and not a substitute for the measures of financial performance prepared in accordance with GAAP. Broadridge Financial Solutions, Inc. Reconciliation of GAAP to Non – GAAP Measures - Earnings, Margin and Per Share Reconciliation (In millions, except per share and margin data) (Unaudited) Three months ended December 31, 2007 Three months ended December 31, 2006 Earnings before income taxes Pre-tax margin Net earnings Net earnings per share Earnings before income taxes Pre-tax margin Net earnings Net earnings per share GAAP basis measures $ 47.3 10.2 % $ 28.9 $ 0.21 $ 46.0 10.7 % $ 28.0 $ 0.20 Non-GAAP adjustments: One-time transition expenses 3.5 0.7% 2.1 0.01 — — — — Interest on new debt & other 9.6 2.1% 5.9 0.04 1.0 0.2% 0.6 0.01 Total Non-GAAP adjustments 13.1 2.8% 8.0 0.05 1.0 0.2% 0.6 0.01 Non-GAAP measures $ 60.4 13.0 % $ 36.9 $ 0.26 $ 47.0 10.9 % $ 28.6 $ 0.21 Six months ended December 31, 2007 Six months ended December 31, 2006 Earnings before income taxes Pre-tax margin Net earnings Net earnings per share Earnings before income taxes Pre-tax margin Net earnings Net earnings per share GAAP basis measures $ 106.4 11.6% $ 64.9 $ 0.46 $ 92.4 10.6 % $ 56.5 $ 0.41 Non-GAAP adjustments: One-time transition expenses 5.6 0.6% 3.4 0.03 — — — — Interest on new debt & other 18.4 2.0% 11.2 0.08 1.6 0.2% 1.0 0.01 Total Non-GAAP adjustments 24.0 2.6% 14.6 0.11 1.6 0.2% 1.0 0.01 Non-GAAP measures $ 130.4 14.2 % $ 79.5 $ 0.57 $ 94.0 10.8 % $ 57.5 $ 0.42 |
 17 GAAP to Non-GAAP Free Cash Flow Reconciliation Note: Management believes that certain Non-GAAP (generally accepted accounting principles) measures, when presented in conjunction with comparable GAAP measures provide investors a more complete understanding of Broadridge’s underlying operational 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. These measures should be considered in addition to, and not a substitute for the measures of financial performance prepared in accordance with GAAP. Broadridge Financial Solutions, Inc. Calculation of Free Cash Flow - Non-GAAP (In millions) (Unaudited) Net Cash Flow Less: Capital Provided by (Used in) Expenditures Free Operating Activities and Intangibles Cash Flow Six Months ended December 31, 2007 ($153) ($18) ($171) Free cash flows is defined as net cash flow provided by (used in) operating activities, less capital expenditures and intangibles. |
 18 Intersegment Transfer Pricing Reconciliation Broadridge Financial Solutions, Inc. Intersegment Transfer Price Reconciliation (In millions, except margin data) (Unaudited) Three months ended December 31, Six months ended December 31, 2007 2006 2007 2006 Investor Communication Solutions Net revenue as reported $ 303.2 $ 287.1 $ 602.3 $ 595.1 Transfer pricing adjustment — (1.0) — (2.0) Net revenue as adjusted -Non-GAAP $ 303.2 $ 286.1 $ 602.3 $ EBT as reported $ 27.2 $ 16.7 $ 57.0 $ 41.3 Transfer pricing adjustment — (0.3) — (0.7) EBT as adjusted - Non-GAAP $ 27.2 $ 16.4 $ 57.0 $ 40.6 Margin % as reported 9.0% 5.8% 9.5% 6.9% Margin % as adjusted -Non- GAAP 9.0% 5.7% 9.5% 6.8% Securities Processing Solutions Net revenue as reported $ 127.6 $ 127.7 $ 252.0 $ 244.2 Transfer pricing adjustment — (3.1) — (6.0) Net revenue as adjusted -Non-GAAP $ 127.6 $ 124.6 $ 252.0 $ 238.2 EBT as reported $ 35.0 $ 38.1 $ 73.8 $ 68.6 Transfer pricing adjustment — (2.2) — (4.3) EBT as adjusted –Non-GAAP $ 35.0 $ 35.9 $ 73.8 $ 64.3 Margin % as reported 27.4% 29.8% 29.3% 28.1% Margin % as adjusted -Non-GAAP 27.4% 28.8% 29.3% 27.0% Clearing and Outsourcing Solutions Net revenue as reported $ 24.7 $ 23.2 $ 49.4 $ 45.0 Transfer pricing adjustment — — — — Net revenue as adjusted -Non-GAAP $ 24.7 $ 23.2 $ 49.4 $ 45.0 EBT as reported $ (1.6) $ (4.6) $ (3.6) $ (10.2) Transfer pricing adjustment — 2.5 — 5.0 EBT as adjusted -Non-GAAP $ (1.6) $ (2.1) $ (3.6) $ (5.2) Margin % as reported -6.5% -19.8% -7.3% -22.7% Margin % as adjusted -Non-GAAP -6.5% -9.1% -7.3% -11.6% 593.1 |
 19 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 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. |