Broadridge Announces Fourth Quarter and Fiscal Year 2016 Results 

Highlights

• Strong fiscal year 2016 results
• Record closed sales
• Fiscal year 2017 guidance calls for continued solid organic growth and double digit Adjusted EPS growth
• On track to achieve three year financial objectives
• 10% dividend increase underscores Broadridge’s continued commitment to balanced capital allocation
• Closed acquisition of DST’s North American Customer Communications unit (“Customer Communications”)

Fiscal Year 2016 Financial Summary

• Revenue growth of 8% led by strong growth in recurring fee revenues
  1. Recurring revenue growth of 9% driven by revenues from closed sales
  2. Internal growth lower than anticipated
• Strong bottom line growth
  1. Diluted EPS growth of 9%
  2. Adjusted Diluted EPS growth of 11%
• Record closed sales an indication of strong demand for Broadridge solutions
• On track to hit three year financial objectives for revenue and EPS growth
  1. On track through fiscal year 2016
  2. Fiscal year 2017 guidance is in line with our goals, even without the contribution from the acquisition of Customer Communications
• Balancing return of capital to shareholders with disciplined investment in technology, products and strategic acquisitions

Business Update

• Record closed sales reflects growing demand for Broadridge services
  1. Strong closed sales results in both segments
  2. Key wins highlight growing acceptance of Broadridge as value-added provider
  3. Very healthy pipeline entering Fiscal Year 2017
• Lower than expected interim record growth
  1. Broadridge more focused on driving growth from new sales and retention
• 2016 acquisitions strengthen Broadridge’s core offerings
  1. Broadened product offering to asset manager and capital markets clients
  2. Acquisition of Customer Communications completed on July 1 makes Broadridge premier provider of multi-channel communications
• Regulatory update
  1. Proposed rule for mutual fund notice-and-access still pending
  2. Issue highlights importance of delivering real savings to mutual funds through digital distribution and investor engagement

Fourth Quarter and Fiscal Year 2016 Segment Results

Source: Broadridge

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