August 11, 2009

Earnings Webcast & Conference Call

Fourth Quarter and Fiscal Year 2009

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 year 2009 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, 2009 (the “2009 Annual Report”), as they may be updated in

any future reports filed with the Securities and Exchange Commission.  Any forward-looking statements are

qualified in their entirety by reference to the factors discussed in the 2009 Annual Report.  These risks

include: the success of Broadridge in retaining and selling additional services to its existing clients and in

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 securities

clearing firms and broker-dealers; declines in trading volume, market prices, or the liquidity of the securities

markets; any material breach of Broadridge security affecting its clients’ customer information; Broadridge’s

ability to continue to obtain data center services from its former parent company, Automatic Data Processing,

Inc. (“ADP”); any significant slowdown or failure of Broadridge’s systems; Broadridge’s failure to keep pace

with changes in technology and demands of its clients; availability of skilled technical employees; the impact

of new acquisitions and divestitures; competitive conditions; overall market and economic conditions; and

any adverse consequences from Broadridge’s spin-off from ADP.  Broadridge disclaims any obligation to

update any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation may include certain Non-GAAP (generally accepted accounting principles) financial

measures in describing Broadridge’s performance. Management believes that such Non-GAAP 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. The reconciliations of such measures to the comparable GAAP figures are included

in this presentation.  

2

Today’s Agenda

Opening Remarks and Key Topics

Rich Daly, CEO

Fourth Quarter & Fiscal Year 2009

Dan Sheldon, CFO

Results

and

Cash Flow

Fiscal Year 2010 Guidance Summary

Dan Sheldon, CFO

Summary and Closing Comments

Rich

Daly, CEO

Q&A

Rich Daly, CEO

Dan Sheldon, CFO

Marvin Sims, VP Investor Relations

Closing Remarks

Rich Daly, CEO

3

Opening Remarks

Key Topics:

•

Financial results for the fourth quarter and fiscal year

2009

•

A review of closed sales performance and sales

pipeline

•

Overview of fiscal year 2010 financial guidance

•

An update on our capital allocation policy and use of

free cash flow

4

Opening Remarks –

Key Topics

Fourth Quarter and Fiscal Year 2009 Financial

Results:

•

Financial performance for the quarter is in-line with expectations and concludes an

acceptable fiscal year

•

Full year Non-GAAP Diluted Earnings Per Share (EPS) of $1.51 per share is slightly over

the mid-point of our guidance range and revenue growth of -3% is at the low-end of

guidance range

GAAP Diluted EPS of $1.58 was just above the mid-point of our guidance range 

•

Full year Non-GAAP Diluted EPS increased by 6% as a result of lower interest expense and

lower effective tax rate

GAAP Diluted EPS increased by 16% related to one-time gain on the purchase and retirement

of Senior Notes and the retroactive benefit of a state tax credit

•

Recurring revenues continue to drive the business and have been the foundation for growth

during this challenging market

Growth in recurring fee revenues in Investor Communications business helped offset significant

decline in Mutual Fund Event-Driven revenues

•

Generated

annual

free

cash

flow

of

$252M

which

enabled

us

to

pay

down

debt,

complete

two acquisitions, repurchase 2 million shares and pay dividends

•

Resiliency of our recurring revenue model was proven by our fiscal year 2009 performance

in a challenging market

5

Opening Remarks –

Key Topics

Sales Performance Overview:

•

Closed sales of $156M grew 5% for the year with

over 30% growth in recurring fee sales offsetting

the significant shortfall in event-driven activity

Closed sales in Investor Communication Solutions

declined 10% to $98M due to lower event-driven

activity.  Recurring fee sales grew 18% to $55M, as

we gained more market share in the registered

corporate issuer market

Recurring fee sales in the two securities processing

businesses grew 47% to $58M, with closed sales for

Securities Processing Solutions growing 66% and

Clearing and Outsourcing Solutions growing 20%

•

Sales pipeline remains strong and has large

promising opportunities

The sales process for the large deals will be slow

and the sales will be lumpy

•

Fiscal Year 2010 sales plan of $165M to $185M

represents growth in the range of 6% to 19%, with

greater than 10% growth in recurring fee sales

•

Again rated #1 in Brown & Wilson’s Black Book of

Outsourcing®

$104

$148

$133

$125

CAGR = 11%

ED = 17%

RC = 9%

High: $185

$156

Forecast

$81

$96

$76

$85

$113

$23

$37

$49

$63

$43

FY05

FY06

FY07

FY08

FY09

FY10

Closed Sales

(Fee Only $ in millions)

Event-Driven (ED)

Recurring (RC)

Low: $165

6

Opening Remarks –

Key Topics

Fiscal Year 2010 Guidance Overview:

•

Expecting fiscal year 2010 to be another acceptable year with revenue growth in the range

of

4%

to

8%;

modest

growth

in

1

st

half

of

fiscal

year

and

stronger

growth

in

2

nd

half

•

Revenue growth in the business expected to be led by the Investor Communications

business, as growth in recurring revenues and the anticipated return of higher Event-

Driven revenues will offset the revenue grow-over challenges in the Securities Processing

business

•

Diluted EPS (Non-GAAP and GAAP) in the range of $1.50 to $1.60

Non-GAAP

Diluted

EPS

growth

in

the

range

of

flat

to

6%,

as

we

overcome

grow-overs

related

to

the

loss of the Bank of America equity business, higher than normal price concessions, and the impact

of lower interest rates and margin balances on net interest income

GAAP Diluted EPS growth in the range of -5% to 1%, as FY09 benefited by $0.07 per share from

the

gain

on

the

purchase

of

our

Senior

Notes

and

the

retroactive

benefit

of

the

state

tax

credit

•

Anticipating

free

cash

flow

in

a

range

of

$235M

to

$270M

•

Low and high-end of our guidance range will be driven by more event-driven activity, and

to a lesser degree trades per day (TPD) growth and margin debit balances

•

Expecting

to

exit

fiscal

year

2010

with

positive

momentum

as

the

strong

performance

of

our operating segments is not expected to be weighed down by grow-overs

7

$248

$251

$290

FY06

FY07

FY08

FY09

FY10

Free Cash Flow

($ in millions)

Opening Remarks –

Key Topics

Note: Free Cash Flow excludes financing activities in the Clearing and Outsourcing Solutions segment

Free Cash Flow & Capital Allocation:

•

Free cash

flow

generation

and

strength

of

recurring

revenues

positions

us

to

refine

our

capital

structure

•Capital allocation framework will consist of:

Maintaining existing debt level

Double annual dividend from $0.28 to $0.56 per share, or

approximately 35% payout of GAAP net earnings

A repurchase plan authorizing repurchase of up to 10

million shares, or approximately 7% of the shares

outstanding, to offset dilution from equity compensation

plans and to opportunistically repurchase shares

Strategic

acquisitions

to

leverage

the

Broadridge

brand

and distribution channels

•

Expect new

products

to

generate

an

additional

1%

in

fee

revenue

growth

and

account

for

approximately

15%

of

closed

sales

in

fiscal

year

2010

High: $270

Low: $235

$252

Forecast

8

FY09 revenues are down 3% related to FX, Distribution revenues and Mutual Fund Proxy Event-Driven activity

Historical revenue trends and context for FY10

Sales

(recurring)

–

Growing

percentage

contribution

to

revenue

from

new

products

and

market

share

gains

Losses

(recurring)

–

Retention

rates

average

98%;

in

FY10

Bank

of

America

accounts

for

1%

in

losses

Internal

Growth

–

4%

historical

average

prior

to

market

crisis;

FY09

flat

and

FY10

-2%

to

flat

given

carryover

of

price

concessions,

with

growth

in

the

2

half

of

year

Event-Driven

-

Flat

to

down

since

market

downturn,

expecting

growth

in

FY10

due

to

return

of

mutual

fund

proxy

activity.

Historically, Event-Driven worst year down (35%) and best year up 34%

Distribution

Revenues

-

Down

last

two

years

due

to

Notice

and

Access,

but

expecting

growth

in

FY10

due

to

higher

anticipated event-driven activity and U.S. postal rate increase

FX -

Benefit in FY08 as U.S. dollar declined; drag in FY09 as U.S. dollar strengthened, and expecting continued strengthening

in U.S. dollar in FY10

Net Income Margins –

FY09 GAAP and Non-GAAP margins are up for the quarter and full year.  FY10 slightly down

due to Bank of America loss, impact of lower interest rates on net interest, and revenue mix

Broadridge

FY09 Results and FY10 Guidance

FY08

4Q09

FY09

DRIVERS

Actual

Actual

Actual

Sales

2%

3%

3%

4%

4%

Losses

-3%

-2%

-1%

-2%

-2%

Net New Business

-1%

1%

2%

2%

2%

Internal Growth

3%

0%

0%

-2%

0%

Event-Driven

0%

-1%

-1%

2%

3%

Distribution

-1%

-5%

-2%

2%

3%

Other/FX

2%

-2%

-2%

0%

0%

Total Revenues

3%

-7%

-3%

4%

8%

Net Income Margins

(Non-GAAP)

9.1%

15.9%

10.0%

9.6%

9.9%

Net Income Margins

(GAAP)

8.7%

15.9%

10.4%

9.6%

9.9%

nd

Low

High

FY10 Range

9

Segment Results –

Investor Communication Solutions

Strong fee growth in FY10 as solid recurring fee growth trend from FY09 continues into FY10, coupled with higher event-

driven activity and the impact from the Access Data acquisition

Recurring

fee

growth

at

5%

for

FY09

and

exiting

Q4

at

3%

growth.

Expecting

new

business

contribution

from

Access

Data acquisition, transaction reporting, registered equity and global proxy, as well as internal growth contribution in-

line with historical averages

•

Internal

growth

coming

from

slight

increase

in

both

equity

proxy

&

mutual

fund

interim

stock

record

growth,

as

well

as

an

increase of Notice and Access adoption rates to 60%

Event-Driven

down

8%

for

FY09,

but

better

than

expected

performance

in

Q4.

Expect

higher

mutual

funds

proxy

activity given Q4 trend, discussions with major fund companies and pent-up demand due to lack of activity over last

12 months

Distribution revenues down 6% in FY09 due to lower event-driven activity and higher Notice and Access adoption

rates. FY10 growth related to higher volumes and impact from postage rate increase

Margin expansion lower than expected in Q4 due to lower fee revenue and product mix. FY10 revenue growth and mix

along with operating leverage in the business expected to generate significant margin expansion

FY08

4Q09

FY09

FY10 Range

($ in millions)

Actual

Actual

Actual

Low

High

Revenues

$1,575

$587

$1,531

$1,655

$1,727

Growth Rate

1%

-7%

-3%

8%

13%

Fee Revenues

$767

$321

$774

$851

$891

Growth Rate

5%

0%

1%

10%

15%

Recurring (RC)

8%

3%

5%

7%

10%

Event-Driven (ED)

-1%

-12%

-8%

18%

28%

Distribution Revenues

$808

$266

$757

$804

$836

Growth Rate

-2%

-14%

-6%

6%

10%

Margin $

$255

$173

$249

$292

$316

Margin %

16.2%

29.4%

16.3%

17.6%

18.3%

Margin Basis Points (bps) Change

160 bps

10 bps

130 bps

200 bps

310 bps

10

10

Segment Results –

Securities Processing Solutions

Revenues: 

FY09 revenues exceeded the high-end of guidance due to increased internal trade volumes, and FY09 Q4

revenues down as strong sales contributions were more than offset by the impact of Bank of America loss and

higher price concessions

Closed Sales for the year finished at just under $40M representing 66% growth, and creating revenue carryover

of approximately $25M into FY10; Q4 signed $10M deal

FY10

revenues

down

due

to

carryover

of

lost

business

and

price

concessions,

impacting

the

1

three

quarters

•

Sales will again be a strong contributor adding 6% to 7% to revenues, primarily from carryover sales from

FY09; large deal signed in Q4 FY09 does not hit revenues until FY11 due to implementation timing

•

Internal growth from trade volume is expected in the range of 4-8% for equities and 9-13% for fixed income.

Much

of

the

trade

volume

growth

is

expected

as

we

move

into

2

half

of

FY10

Margins

FY09 flat to FY08, but Q4 significantly higher due to one-time items in prior year

FY10

1

half

will

be

in

high-teens

given

carryover

impact

of

client

losses

and

price concessions

and

then

2

half

expected to be in the mid 20’s

Revenue from new sales have 50% to 60% margin contribution due to conversion cost amortization and new

products have lower margins than just strictly trade volume business.  Losses and concessions tend to fall to

bottom line

FY08

4Q09

FY09

Actual

Actual

Actual

Low

High

Revenues

$514

$131

$534

$509

$520

Growth Rate

2%

-2%

4%

-5%

-3%

Margin $

$138

$31

$143

$112

$119

Margin %

26.7%

23.7%

26.7%

22.0%

22.9%

Margin (bps) Changes

190bps

290 bps

Flat

470bps

380bps

FY10 Range

($ in millions)

st

st

nd

nd

11

Segment Results –

Clearing and Outsourcing Solutions

Revenues:

FY09 revenues exceeded the high-end of guidance due to increased trading and clearing activity

FY09 and Q4 revenues up due to contributions from net new business offset by lower internal growth from net interest income

due to lower Federal Funds rate and lower margin balances

•

Contributions from new sales have been strong each quarter, primarily carryover sales from FY08 and Neuberger sale,

and

for

the

year

added

26%

to

revenues

on

expectations

of

high

teens

to

low

20’s

•

Outsourcing closed sales in FY09 of approximately $2M

•

From Q3, Federal Funds rate has not changed and margin balances improved slightly (-$8M Federal Funds rate impact in

FY09)

•

Client revenue retention rate continues at > 95%

FY10

revenues

virtually

flat

to

slight

growth

given

that

net

interest

revenue

is

down

and

has

biggest

impact

to

1

half

•

Sales

continue

to

drive

>10%

contribution

to

revenues

and

client

revenue

retention

remains

>95%

•

Net

Interest

income

down

$5M

1

half

•

Outsourcing revenues impacted by low sales in FY09; and FY10 sales will have little impact in FY10 given conversion

times

Operating

losses

are

greater

in

FY10

due

to

net

interest

revenue

decreases

all

fall

to

bottom

line

and

new

business

has

20%

or

50%

contribution margins depending on whether it’s Outsourcing or Clearing, respectively 

FY08

4Q09

FY09

FY10 Range

($ in millions)

Actual

Actuals

Actuals

Low

High

Revenues

$96

$26

$101

$100

$105

Growth Rate

2%

10%

6%

-1%

4%

Net Interest Income

$27

$2

$13

$9

$10

Other Clearing Revenue

$50

$18

$63

$68

$70

Outsourcing Revenue

$19

$6

$25

$23

$25

Pre-tax Loss

-$5

-$2

-$9

-$13

-$11

st

st

12

Segment Results –

Other & Foreign Exchange (FX)

Other Fees:

virtually flat FY09 and not planning any for FY10

FX:

Large

negative

impact

to

revenues

in

FY09

and

using

forward

rates

for

FY10 guidance range. International

operations, primarily Canada, account for approximately 11% of total revenues

Other:

Interest –

Q4

@

$3M

and

high

end

of

FY10

guidance

range

assumes

about

the

same

each

quarter

and

low

end

of

FY10

guidance

range

assumes

interest

rates

rise

in

line

with

LIBOR

forward

rates

Corporate Expenses/Investments –

Q4

@

$7M

and

high/low

of

FY10

guidance

range

impacted

by

variable

investment spend depending on how year plays out

FX Transaction Activity –

Q4 impacted by U.S. cash in Canada and change in rates, while full year fairly

“hedged”

and

not

planning

on

any

+/-

in

FY10

FY08

4Q09

FY09

FY10 Range

($ in millions)

Actual

Actual

Actual

Low

High

Other Fees Revenues

$9

$0

$2

$0

$0

Other Fees Margin

$9

$0

$2

$0

$0

FX Revenues

$14

-$8

-$18

-$30

-$30

FX P&L Margin

$6

-$2

-$4

-$10

-$10

Other

Interest Expense

-$30

-$3

-$14

-$13

-$12

Purchase of Senior Notes

(1-time gain)

$0

$8

Corporate Expenses & Investments

-$32

-$7

-$30

-$24

-$35

Transition Expense

-$14

FX Transaction Activity

-$1

-$5

$2

$0

$0

$0

$0

$0

$0

$0

$0

$0

13

Cash Flow (Non-GAAP) –

FY09 and FY10 Forecast

Calculation of Free Cash Flow

(Non-GAAP)

:

Earnings

Depreciation and amortization

Stock-based compensation expense

Gain from purchase of senior notes

Other

Subtotal

Working capital changes

Securities Clearing Activities

Long-term assets & liabilities changes

Net cash flow provided by operating activities

Cash Flows From Investing Activities

Capital expenditures & Intangibles

Free cash flow

Cash

Flows

From

Other

Investing

and

Financing

Activities

Acquisitions

Long-term debt repayment

Dividends

Other

Repurchases

of

Common

Stock

&

Proceeds

from

exercise

of

Stock

Options

Short-term (bank overdrafts)

Net change in cash and cash equivalents

Cash and cash equivalents, at the beginning of year

Cash and cash equivalents, at the end of year

(a) Excluded from Earnings and Free Cash Flow

(b) Guidance

does

not

include

effect

of

any

future

acquisitions,

additional

debt

or

share

repurchases

Unaudited

(In millions)

Low

High

Ridge Clearing

All Other

Financing

Processing

Broadridge

Activities

Activities

Total

-

$                

223

$          

223

$            

215

$            

230

$            

-

56

56

60

62

-

30

30

31

33

-

(8)

(8)

a

-

6

6

1

2

-

307

307

307

327

-

(20)

(20)

(16)

(12)

77

-

77

-

-

-

(5)

(5)

(2)

-

77

283

359

289

315

-

(30)

(30)

(54)

(45)

77

$                 

252

$          

329

235

$            

270

$            

-

(61)

(61)

-

-

b

-

(114)

(114)

-

-

b

-

(38)

(38)

(67)

(67)

-

5

5

-

-

-

(29)

(29)

-

-

b

(9)

-

(9)

-

-

68

15

83

168

203

41

157

198

172

172

109

$              

172

$          

281

$            

340

$            

375

$            

Twelve Months Ended

FY10 Range

June 2009

All Other Processing

Activities

$            

Free Cash Flow:

$252M is within the mid-

range of our guidance

Biggest swings are

related to changes in

working capital

due to timing differences

in receivables and

payables

Timing differences also

in capital expenditures

which are approximately

50% of spend related to

new business

Debt paid down to

$324M and expect to

hold at this level during

FY10

Increased liquidity by

$75M and now have

committed lines of

$575M and all credit

rating agencies at

investment grade

FY09 stock repurchase

of 2M shares

14

Broadridge

-

FY 2010 Financial Guidance Summary

Revenue growth in a range of 4% to 8%

Sales Plan for the year of $165M to $185M

Earnings before interest and taxes margin of 16.0% to 16.3%

GAAP Diluted EPS in the range of $1.50 to $1.60

Interest expense of approximately $13M

Effective Tax Rate of approximately 37.5%

Free cash flow in the range of $235M to $270M

Diluted weighted-average shares of approximately 144M, which does not

include

the

impact

of

any

share

repurchases

15

Summary

Solid

fiscal

year

2009

where

we

maintained

and

achieved

original

annual

EPS

guidance despite unprecedented market conditions

Good growth in closed sales with strong growth in recurring fee sales, as pipeline

remains robust with promising large opportunities in all segments

Exiting fiscal year 2009 with positive momentum driven by the Investor

Communications business and strong sales contributions in our Securities

Processing and Clearing businesses

Anticipate

revenue

and

EPS

growth

in

fiscal

year

2010

with

revenue

growth

led

by

our

Investor

Communications

business

First half of fiscal year 2010 will have a tough compare as a result of client loss, price

concessions and one-time events in fiscal year 2009

Capital

allocation

policy

will

allow

us

to

double

annual

dividend

payout

and

opportunistically

repurchase

shares

as

part

of

our

authorization

to

repurchase

up

to

10 million shares

Broadridge

is

well

positioned

as

a

result

of

our

recurring

revenue

base,

great

value

propositions, new initiatives, strong free cash flows, solid balance sheet and

appropriate liquidity

16

Q&A

There are no slides during this portion of the

presentation

17

Closing Comments

There are no slides during this portion of the

presentation

18

Appendix

Appendix

19

Segments –

FY10 Financial Guidance Summary

Investor Communication:

Revenues 8% to 13%

Margins 17.6% to 18.3%

Sales

$95M to $105M

Securities Processing:

Revenues -5% to -3%

Margins 22.0% to 22.9%

Clearing and Outsourcing:

Revenues -1% to 4%

Operating losses at $13M to $11M

Sales Plan $70M to $80M for the combined Securities Processing and Clearing

and Outsourcing business segments

20

Alliance Bernstein

Bank of America/Merrill Lynch*

Barclays Capital Services

BMO Nesbitt Burns

BNP Paribas

CIBC World Markets

Deutsche Bank

E*Trade Group

Edward Jones

HSBC Securities

J.P. Morgan Chase

Jefferies & Company

Royal Bank of Canada

Scotia Capital

UBS Securities

The top 15 SPS clients generate approximately 70% of the SPS segment’s revenues

Securities Processing Solutions Top 15 Clients

Note: The above schedule is an alphabetical listing of the top 15 SPS clients based on fiscal year 2009 revenues

* Bank of America/Merrill Lynch

includes loss of equity processing business as previously disclosed 

Equity Processing

Fixed

Income

Processing

Retail

Institutional

Top

Clients