Good morning. My name is Tom and I will be your conference operator today. At this time, I would like to welcome everyone to the Broadridge Fourth Quarter Fiscal Year 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. I will turn the call over now to Mr. Thibault. Sir, you may begin your conference.

Thank you, Tom. Good morning, everyone, and welcome to Broadridge's fourth quarter 2018 earnings call. Our earnings release, earnings supplement and the slides that accompany this call may be found on the Investor Relations section of broadridge.com. Joining me on the call this morning are Rich Daly, our CEO; Tim Gokey, our President and COO; and our CFO, Jim Young. Before I turn the call over to Rich, a few standard reminders. We will be making forward-looking statements on today's call regarding Broadridge that involve risks. The summary of these risks can be found on the second page of the slides and a more complete description on our Annual Report on Form 10-K. We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of Broadridge's underlying operating results. An explanation of these non-GAAP measures and reconciliations to their comparable GAAP measures can be found in the earnings release and presentation. Let me now turn the call over to Rich Daly.

Thanks, Edings, and good morning, everyone. I'm going to start on slide 5. Broadridge capped a strong fiscal year 2018 with a strong fourth quarter. We enter fiscal 2019 with positive momentum and are well-positioned for future growth. As is typical for our year-end call, we have a full agenda. I will begin with a quick overview of our 2018 financial results. I will also share my thoughts on the momentum we are seeing in the market, why I think we are so well positioned to keep that momentum going, and then I'll review our key guidance points for fiscal 2019. Tim will provide a strategy update and discuss the performance of our two segments. Then, Jim will review our financials and give some color on 2019 guidance. As always, I will close with some final thoughts including why I am more confident than ever about Broadridge. Broadridge had a very strong fiscal year 2018. Total revenues rose 5% to $4.3 billion, driven by recurring fee revenue growth of 6% and 30% growth in event-driven revenues. Adjusted operating income rose 10% and margins grew by 80 basis points. Our earnings also benefited from lower taxes, which further contributed to a 34% increase in adjusted EPS. We achieved all of this while increasing investment with a focus on new products and technologies. I am confident these investments will drive long-term growth and shareholder value. Now, let's talk about capital allocation. Balanced capital allocation is a Broadridge hallmark and 2018 was no exception. We invested $250 million of your money in a combination of M&A and capital expenditures. We did six tuck-in acquisitions to strengthen our data capabilities and expanded the range of services we offer to funds and corporate issuers. We also upgraded our GTO center of operations. Broadridge's commitment to…

Rich, thank you. It really is an exciting time to be at Broadridge. We are at the center of important industry trends for which we are uniquely positioned. I am confident that the year we just finished and the guidance we are providing today, even with an expected decline in event-driven revenue, proves both the strength of our business model and that the investments we are making in longer-term growth are bearing fruit. I'll begin my remarks today with a focus on execution by providing a quick overview of our operating performance. Then, I'll provide an update on the strategy we outlined at our Investor Day for how we will build on the market opportunity in front of us to take Broadridge to the next level. Let's turn to slide 7. I want to leave you with three key points on our execution. First, our strong Closed sales create momentum for the future; second, we've had continuing strong performance across both segments; and third, we are investing for the future. Our record Closed sale results show the strong momentum we are seeing across governance, capital markets and wealth management. In the fourth quarter, our governance franchise signed with a fast-growing new client and signed an extension with a major existing client that included a significant expansion of services. These wins and others demonstrate how we continue to drive growth by being aligned with fast-growing new interests while bringing more value to existing clients. In capital markets, we added the North American operations of a major Asian bank and made two notable sales in the Japanese market, one an existing European client, and the other, a leading Japanese bank. Expanding our global reach was an important theme at our Investor Day. So, I am pleased that our international recurring sales were…

Thanks, Tim, and good morning, everyone. Broadridge ended a strong year on a positive note with record sales, strong recurring revenue growth and a continued tailwind from lower taxes. Those benefits were offset to some degree in the quarter by the expected decline in event-driven revenues and an increased level of investment spending. More importantly, Broadridge enters fiscal year 2019 well-positioned to deliver another year of recurring revenue growth and double-digit EPS growth. I'll begin my comments with a few callouts. First, Closed sales and backlog. Broadridge's strong Closed sales performance pushed our overall recurring revenue backlog up from $250 million at the end of fiscal 2017 to almost $300 million at the end of fiscal 2018. Second, event-driven revenues, Broadridge reported a record $284 million in event-driven revenues in fiscal 2018, driven by increased shareholder activism and mutual fund proxy activity. Looking ahead to fiscal 2019, we expect event-driven revenues to decline 10% to 20%. Third, investments, the heavy investment activity Tim described drove an elevated level of operating expenses in the fourth quarter. While our plan calls for continued investments in new products and technologies, we do expect our level of investment spending to decline modestly in fiscal 2019. Fourth, taxes, Broadridge continue to benefit from the double tailwind of lower statutory tax rate and the positive impact of a higher ETB, or excess tax benefit, related to equity compensation, both of which helped to lower our tax expense. Looking ahead, we expect a further reduction in our underlying U.S. tax rate as we get the full year impact of the Tax Act, but much of that benefit will be offset by a much lower ETB. Last, guidance, our guidance for adjusted EPS growth of 9% to 13% incorporates all of the items I just mentioned. I'll return…

Thanks, Jim. I'm on slide 17 of the presentation for a quick wrap-up. One, Broadridge had a strong year with strong recurring revenue growth, record event-driven revenues and adjusted EPS growth of 34%. Closed sales grew 14% to a new record. Two, we closed fiscal 2018 on a strong note. Fourth quarter recurring revenues rose 7% and Closed sales were $115 million. Three, Broadridge enters fiscal 2019 with momentum. Our guidance calls for recurring revenue growth of 5% to 7% and adjusted EPS growth of 9% to 13%. In other words, another Broadridge kind of year, even with a decline in event-driven revenues. Four, we are on track to achieve our three-year targets, especially for organic recurring revenue growth and adjusted EPS growth. And finally, five, we continue to manage our business with a focus on creating long-term value. At Broadridge, that means ensuring that we continue to be well-positioned to take advantage of the opportunities created by an evolving financial services industry. That focus is at the heart of the Investor Day strategy Tim laid out. That's why I'm convinced that Broadridge is better positioned than ever to deliver continued growth, both in 2019 and well beyond. It is really a great time to be at Broadridge. Before I turn the call over to you for your questions, I want to thank my fellow Broadridge associates. Their commitment to the service profit chain is the foundation for the results we reported today. Let's now take questions. Tom?

Sure. Thank you. Your first question comes from the line of Mr. David Togut of Evercore ISI. Your line is open.

Good morning, and nice to see the 33% dividend increase.

It's our shareholders' cash, Dave.

Well, it's good to see. I'll ask my question and follow-up together. So the $185 million to $225 million Closed sales target for 2019, could you break down for us how much of that comes from the bigger transformative deals versus sort of the singles and doubles? And then, my follow-up is really for Jim. On the 9% to 13% EPS growth guidance for FY 2019, should we be using a 20% or a 24% tax rate as we model that out?

Dave, it's Tim Gokey. I'll take the sales question and then hand the tax rate question over to Jim. So, first of all, we have a very robust pipeline in both the larger transaction side and on the, what we call, core sales, the ongoing deals. And in almost every year, we end up with a healthy mix of both. I think, generally, you see us near the higher end of our range when one of the larger transaction comes in, and as you know, the timing of those is very uncertain, and near the lower end of the range when we don't have those larger transactions, but we have a pretty robust pipeline on both sides. And my expectation at this point is that you'd see both, but, again, the timing of the larger deals is always hard to predict.

And, David, this year, the mix was what was so impressive of our Closed sales for this year. We've got to the $100 million through the first three quarters without any significant transactions to speak of. So, to then have the year with a very solid fourth quarter and a mix there, but, again, a lot more, I'll call it, singles, doubles, maybe triples, but there wasn't the grand slams that we're hoping for, at least as many of them as we think we could have had. So, we're well-positioned because of the breadth of product, as particularly what Tim talked about in terms of the Investor Day update and the strategy, there is an awful lot that can be sold through Tim and the team's leadership and really creating opportunities across governance, capital markets and wealth.

And, David, with respect to the tax rate, the way to think about it is if we come in exactly on plan, we'll have a rate that is a – quarter line rate that's about 24%. And then, when you apply the $25 million ETB, the effective rate that pops out is around 20%. So, as you're modeling and looking at different scenarios, that 24% is the rate to apply to the earnings and then adding on that fixed ETB amount of $25 million, which is our assumption currently.

Thank you.

Your next question comes from the line of Mr. Darrin Peller of Wolfe Research. Your line is open.

Hey, guys. Nice job. Let me just start off on the GTO side. I mean, obviously, it keeps trending very well. I guess, first of all, what kind of activity – the trade activity, how much of that contributed to the growth this past year when we deconstruct, I guess, the 8% for the quarter at least? And then, going forward, I mean, David just touched on that in his question around the Closed sales, but, I mean, it seems like there's still a lot of medium-sized deals coming on. I mean, are you really factoring in any of the much larger opportunities that we've heard about in the marketplace to outsource the clearing and settling operations to that segment's growth profile yet?

Sure. This is Tim and I'll let Jim add in any details on the specific growth breakdown. But on GTO, the biggest driver of growth has been and continues to be the onboarding of new clients, and that accounts for the significant majority of the new growth. Then, the other part of it is internal growth, and that internal growth was about half trade activity and half adding other non-subscription trade services. So the trade growth is – it's a contributor, but it's not the overall – or by any means, the biggest contributor. And that's really because of the nature of our tiered pricing model and if you can get a lot of additional trade volume without a lot of additional cost. In terms of the sales guidance and how that factors in larger transactions, I'll go back to what I said earlier is there's a lot of opportunity out there. We are having a lot of conversations, and the timing of when those might happen is always hard to predict. But we really like the position we're in across both wealth and capital markets. We have exciting things and transformative things in both of those areas, but the timing of that, again, is always hard to predict, but we do feel good about this range.

Okay. All right. That's helpful. Just one quick follow-up. When considering the SEC review, just – I mean, what percentage of your ICS revenue actually is being looked at there? If you can just give us a little more specifics on that. And I mean, I understand you've invested quite heavily in that area and so there should be some justification for pricing obviously, but I'd just be curious what your thoughts are in terms of the timing also around how – it seems like these things can take many, many years. What should we expect from a timing perspective on that front? Thanks, guys.

So, these things always take longer than anyone, including us, would like them to take. Bear in mind, what the SEC just did was not say they're going to do a review. They're asking for comments on whether they should consider doing a review. All right? I made it very clear in my comments, and I want to reinforce that, when I said that the more responsible parties look at us, the better we look. The amount of cost that we've taken out on the Street side versus cost taken out by funds or equity issuers who control their own registered site is a dramatic increase where we're cheaper in both cases, all right, on a per unit cost basis. I talked about all the things we need to do by coordinating all of this for our broker clients versus what they need to do managing a single profile account. So, it's very difficult to not recognize that the application of technology, which, as you know, we've got $1 billion-plus invested in, okay, is what's driving these extraordinary efficiency results. But more importantly, it can actually drive levels of engagement particularly with the use of omni-channel digital capabilities to the next level. So, we're excited to sit down and talk about, what I'd call, that value proposition, which no one ever seems to think at all, where we can take out more costs, okay, and paper and postage. So, remember, it's the net what is it costing you, all right, which is what the real focus always comes back to and what it should be, all right, versus what the fees are. So, by taking out and continuing to take out the paper and postage costs, we've been able to see an increase in fees, but with great savings going to the benefit whether it be equity issuers, fund companies and their underlying shareholders. You take that now to what the SEC is looking to do, which is to continue that cost efficiency, but to create a far more engaging experience, far more knowledgeable investors, and the digital capabilities that we've demonstrated directly in the marketplace and is out there, really, we believe, will be a game-changer. And by the way, it costs money do to that, and we expect to get paid to do that. And we expect people to be happy when it's successfully implemented because the net result is going be lower cost to them because of the paper and postage component. So, we are very excited about where we are. I'm not excited that it will happen as soon as we would like it to happen.

Your next question comes from the line of Mr. Peter Heckmann of Davidson. Your line is open. Peter J. Heckmann - D. A. Davidson & Co.: Good morning, gentlemen. Hey, Jim, on those six acquisitions you did, can you talk about the acquired revenue that's included in your fiscal 2019 guidance? I'm thinking maybe somewhere around $20 million. And then, as well, do you have any share repurchases included? Or conversely, what would be the kind of the midpoint of the share count that you're using to get to your EPS guidance?

Yeah. Pete, so the – on the acquisition revenues, as you know, they were six, but all relatively small. They add about 1 point of growth next year. So that's embedded in our guidance. And as you recall, our methodology is to just capture the piece that we haven't recognized yet in the first full year in that contribution to growth. And with respect to share repurchase, we don't have any explicit share repurchase built into the plan. As you know, we just came off of a quarter where we did $225 million of share repurchase, about $200 million net of proceeds. So, very active on that front, but nothing in the plan.

And one other comment here, Pete, in terms of the M&A. Jim covered that we haven't changed our target ratio, leverage ratio, we haven't changed any of our philosophy here. I want to start by emphasizing that, at the same time, say, that had our M&A number been higher, we all would have been happier, but we're not going to change our discipline around returns or our discipline around strategic fit. But I certainly would have been happier if our M&A number instead of being $148 million was twice that as something like that. And I certainly would have thought preferred the growth from M&A to be 2 or 3 points versus 1 point. So, as static as we are about the year, M&A is something we control and don't control in the sense of we're not going to do a deal for the sake of doing a deal. But we all would have been happier, based on what we think is our proven skill set, that successfully executing and implementing and integrating these tuck-ins, we all will be a lot happier if that 1% was a 2% to 3% number. Peter J. Heckmann - D. A. Davidson & Co.: Got you. That's helpful. And then just back on the quantification of the exposure to proxy fee reviews, based on the supplemental disclosure you put out this morning, it looked like the revenue that's covered by current regulated fee schedules was about 21% of revenue. So can give you us an idea what percentage of the distribution revenue is related to proxies and interims? And then just on that distribution piece, what would be approximate margins on distribution?

Pete, this is Jim. The 21% is roughly accurate. I don't have a mix in front of me on the distribution. Obviously, our BRCC business has a lot of distribution revenues in there. If you look at the mix that we talked about at Investor Day, we talked about, I think, on average about right around or less than 10% margin on the all-in distribution revenues. Again, some of that blended at nothing and sometimes more than that. So those are some of the math that you did.

And, Jim, this is Rich. That margin that we make is again another example of the great benefit that the customer receives, because that margin is being driven by driving efficiencies in sorting capabilities and then with some of the technology that we acquired in the communications transaction from DST, we have things called statement packs and things like that where we can take five separate mailings going to a customer across the same financial institution, very unrelated in some cases. So it could be a credit card or a mortgage statement and another statement and combine them in one envelope and take advantage of the overall lower postage rate of getting those five separate envelopes into then one larger envelope and dramatically reducing the cost there. So, the margins we make, and I just want to emphasize, is there because the people paying it are always receiving a benefit dramatically beyond that.

And, Pete, it's Tim Gokey. I'll add one further factor on the quantification of this, which is the SEC has requested comment specifically on fees for the distribution of mutual fund interims, and they're specifically limited to that. So, that is about 8% of the fee revenue. Obviously, once these conversations start, they can go more broadly, but they haven't asked for something that's more targeted than the total regulated fees.

Yeah. And Tim is spot on here. The reason I set my excitement is I ultimately believe enhanced content, whether it be getting it on your phone or whether getting it sent to you directly, is going to be what equity issuers in the world of activism are going to need to get in front of investors. And what fund companies – let's not forget, this is not just an expense. These are the people that is their business model and engaging with them in a way to demonstrate why you should still be investing in this fund or another fund is something we're in active discussions with funds right now on. And so, the opportunity to get paid for that enhanced content is something we think that everyone should want to have a conversation about, and then particularly Broadridge. Peter J. Heckmann - D. A. Davidson & Co.: Thanks for the color.

Your next question comes from the line of Mr. Puneet Jain of JPMorgan. Your line is open.

Yeah. Hi. Thanks for taking my question. So your margin guidance is in line with your medium-term target, it seems like. I know you talked about lower investments this year, but how should we think about margin trajectory beyond this year?

Yeah, Puneet, this is Jim. We continue to feel good about our ability to expand margins. As you know, our longer term targets are about 50 basis points per year. At 80 basis points this year, we've exceeded that. Next year, we're on track to do about that, a bit better. I think any multiyear view, we're still going to stick with our 50 basis points per year, but obviously we're encouraged by our ability to produce this, especially, by the way, as I think about next year; when you've got that decline in event-driven revenues, to produce similar types of margin expansion makes us feel good. But certainly not ready yet to revise that number.

Got it. And then, event-driven implies, give or take, $230 million, $250 million in revenue. Is that the new baseline level for that business?

Yeah. We talk about it as a 10% to 20% decline off of the $284 million. Baseline is always difficult to ascertain with event, but I think ways to think about it are we have assumed lower mutual fund proxy activity in this past year, although we do assume some notable activity. We have lower equity contest activity than last year, recognizing that these contests are very difficult to project. And clearly, it's difficult for us to put anything in the plan for that, recognizing that the activist share class is a big one now, and certainly, we're hoping for more activity, but it was certainly too much for us to stick a major assumption like that in the plan.

Got it. Thank you.

Your next question comes from the line of Mr. Chris Donat of Sandler O'Neill. Your line is open. Christopher Roy Donat - Sandler O'Neill & Partners LP: Just want to ask one on the outlook for M&A and really your M&A strategy. I know you said there's no change to the tuck-in acquisition strategy and the leverage ratios and things like that. But as Broadridge has become a company with $3.5 billion of revenue and $500 million of pre-tax earnings, it seems like you need to do bigger and bigger tuck-in acquisitions to have a meaningful impact on earnings. How do you feel about the universe of potential targets out there that are big enough to make a difference for you? Are you seeing enough that's out there in size? Like you mentioned, you wanted to do sort of 2 times the $148 million in M&A that you did this past year. So, just kind of curious on your sense on this one.

Yeah. Chris, it's Tim Gokey. And as I said before, I think that fintech is sort of an area where M&A is an evergreen strategy because there are always teams rolling out of banks or other places, creating something and getting it up to a certain size and either wanting to create some liquidity for themselves or wanting to sell to the Tier-1 clients of the world who may not buy from them. So, I do think it's an evergreen part of the strategy. It's certainly an important ongoing part of our strategy. And this past year was very active for us, as we said, with six transactions. And while they were smaller, they were all proprietary discussions and they were all in areas that were very strategic for us. So we do feel very good about the year – the year just past. As we look forward, we have a very robust pipeline with transactions of all different sizes, and we're going to maintain a high bar. And as we look at this, we're going to look for things where they're truly additive to what we can bring to our clients and where we think we are uniquely positioned as a buyer and an owner. These things do tend to be lumpy. And if you look at us, over time, you have seen it sort of come in runs where things become available and we're able to get them. And so, we're going to keep working hard at it. And I'm confident that, over time, you'll see us hit our broad targets. Christopher Roy Donat - Sandler O'Neill & Partners LP: Okay. That's helpful. Thanks, Tim. And then, I guess – well, I'll throw it out there for you. Last week, we had pretty major announcements from Fidelity in terms of going to zero fee rate on two mutual funds and some significant price cuts on other mutual funds. I'm wondering if you expect any direct or indirect impact on mutual fund communications or perhaps even consolidation among different mutual funds out there, or is it really too soon to tell on that one? But seems like a pretty major event in the mutual fund world, particularly for active managers.

Yes, great question. I think, certainly, you're seeing – and this is just another step, you're seeing significant commoditization of asset management with the shift from active to passive and other things. And that has been masked to a certain extent by significant asset growth in a very strong market. When the market turns, there is going to be significant pressure on the asset management industry. And from our perspective, we see asset managers going through many of the challenges that our capital markets clients have gone through over the past 10 years. We see that happening in the asset management industry in the next 10 years. And that for us, that's why we're making investments around better serving investment managers. And those changes are also beginning to affect wealth managers and why we're investing in certain wealth managers, because when there is that change, that really creates the need for people to relook at their operating models and their business models, and we think we can be very, very helpful in that regard, helping people save money and become more efficient. So we think there is going to be change, but we think in the long run that will be opportunity for us. Christopher Roy Donat - Sandler O'Neill & Partners LP: Got it. Thanks very much, Tim.

Your next question comes from the line of Mr. Patrick O'Shaughnessy of Raymond James. Your line is open. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: Hey. Good morning. First of all, thanks for all your comments on the SEC fee review. Want to kind of follow up on that topic. So you have the Investment Company Institute, which represents the fund industry. They've been reasonably public about their concerns about interim pricing and they seem eager to revise the fee schedule downward. So is it your view that the ICI and the fund industry just need some better education on the value that Broadridge provides, that the cost that Broadridge is taking out, the relative costs compared to other communications channels, and once they better understand those dynamics that their view is going to more align with yours?

So, Patrick, first of all, I want to emphasize what Tim just said, which is we are very well aware, whether it be broker-dealers that we've witnessed since the financial crisis to this day without any letup in the intensity or now asset managers are under significant internal pressures, all right, and therefore cost always becomes a focus point for organizations under those significant pressures. So, we truly acknowledge that. That's why we believe that with the many fund families we're working with right now, who understand not only what we've taken out on cost, but the opportunity to take out more cost is why I feel so positive about that. But I absolutely understand, in a perfect world, everyone would love us to take out all the paper and postage cost and do it for free, okay? So that's going to be human nature and business models as we go forward. I think the thing that is missing here, okay, is that the relationship between the fund families and the broker-dealers is very significant. 85% of the distribution for funds goes through the broker-dealers. So the ICI comments are comments about the broker-dealer fees, okay, we charge the broker dealer a fee, but the fee is a broker-dealer fee. So I think the thing that will get flushed out here, Patrick, is that the relationship between the fund and the broker-dealers is very strong, has to be very strong, will continue to be very strong, all right, and so -and there's a real need for each other. The broker-dealer needs product to distribute and the fund needs our investments distributed through that channel. So, I expect as these dialogues go on – and we're already seeing the beginning of that, okay, where we'll get back to what makes sense…

We're going to close on that note. Thank you, everybody, for your interest in Broadridge. Please choose to have a great day.

This concludes today's conference call. Thank you for your participation. You may now disconnect.