Good day and welcome to the Broadridge Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded. I would now like to turn the conference over to Edings Thibault, Head of Investor Relations and Corporate FP&A. Please go ahead, sir.

Thank you, Rocco. Good morning all and welcome to Broadridge's fiscal year 2020 earnings call. Our earnings release 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 Tim Gokey, our CEO; our CFO, Jim Young; and Matt Connor, our incoming Interim CFO. Before I turn the call over to Tim, a few standard reminders; we will be making forward-looking statements on today's call regarding Broadridge that involve risks. A 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 Tim Gokey. Tim?

Thank you, Edings. Three months ago, I spoke to you about the twin challenges of the global health and economic crises and, in particular, about the impact COVID has had on so many in the Greater New York area. Since then, while the environment is better in many respects, the outlook remains highly uncertain and now includes an increased focus on racial justice. In this complex environment, I remain incredibly proud of how Broadridge's more than 12,000 associates are continuing to step up supporting our clients, coworkers and families, while staying engaged in our communities. As COVID continues, our first priority remains the health and safety of our associates. We continue to deploy extensive safety protocols for our essential workforce, which include temperature checks, social distancing, and the use of personal protective equipment. Our non-production offices have remained closed and no associates will be required to return before January, a date we continue to assess. Despite those challenges, Broadridge has not missed a beat in serving clients, closing sales, and developing new products. We've continued to process high trade volumes and record numbers of shareholder communications. As a result, Broadridge delivered a very strong quarter that drove strong fiscal year 2020 results, including 10% recurring revenue growth, 8% EPS growth, and record closed sales. Our outlook for fiscal 2021 calls for continued top and bottom line growth, 2% to 6% recurring revenue growth, and 4% to 10% adjusted EPS growth, as well as increased investment in our people, platforms, and technology. More importantly, I'm confident Broadridge is meeting the moment posed by these times, including the near-term challenges of the pandemic and the longer-term opportunities created by the acceleration of the key trends driving our growth. Turning now to the quarter, Broadridge reported an exceptional fourth quarter. Performance was driven…

Thanks, Tim, and thank you for the kind words and your mentorship and partnership. It has been an honor and a pleasure to work so closely with you over the past six years. It is bittersweet to be on my last earnings call as Broadridge's CFO. I'll begin my comments with several call-outs on slide 9. First, the strong finish. This was an exceptional fourth quarter highlighted by near-record sales and 10% organic growth, translating into 6% organic growth for the all-important second half of the year and 4.5% organic for the full year. Second, event-driven revenue. This is the highest event has been all year. But even with a 33% increase this quarter, we still closed fiscal 2020 with well below average event-driven revenues. Third, closed sales. Our sales team stood and delivered an impressive quarter and another full year record performance, demonstrating the strength and resilience of the Broadridge business model. This leads to the fourth call-out, backlog. The recurring revenue backlog stands at $355 million or 12% of fiscal 2020 recurring revenue, which gives us fantastic visibility into future growth. Fifth, a strong balance sheet. We exited the year right at our long-term target leverage ratio and with ample liquidity. As we think about uncertain macroeconomic climate we are in, it is great to be in such a strong position. Final call-out, guidance. Our fiscal 2021 guidance calls for another year of top and bottom line growth even in the face of a pandemic and global recession. Importantly, embedded in our guidance is meaningful investments to ensure we are well prepared for the recovery and continued long-term growth. Let's turn to slide 10 to review our revenue growth drivers. Total revenue grew 14%. The biggest driver of this was 10% organic growth and, in particular, revenue from…

Thank you, Jim. Thanks for your leadership and friendship over the past few years and best of luck in your new role. I know you'll do great things at Indigo Ag. I'm excited for this new interim role and I'm looking forward to meeting all of you. Broadridge is exiting fiscal 2020 in a strong position and poised for additional growth. We have a strong plan to drive growth. And my goal is to maintain our focus on disciplined cost management to fund additional investments. We have a lot of momentum and our primary goal is that we continue to put ourselves in position to continue that momentum across each of our major verticals. And we look forward to sharing what that will mean, not just for fiscal 2021, but for our next set of three-year objectives that we will share with you at our Investor Day this December. Rocco, let's go to Q&A.

Absolutely, sir. We will now begin the question-and-answer session. Today's first question comes from Darrin Peller with Wolfe Research. Please go ahead.

All right. Hey. Thanks, guys. Jim, first of all, I just want to say congrats to you. We're, obviously, going to miss you, but all the best to you. Guys, when we think about the structural opportunities you're seeing from this environment and what we saw last quarter was obviously strong position growth and a very real demand for your GTO business given just demand from financial institutions, I think. And volumes obviously helped, but when we look at your guidance, obviously, you're still suggesting 2% to 6% which is a decel from now, and I know there's tough comps. What I guess I'm trying to figure out is what's already done by bookings, what you already know about. And then when we consider what could be sustainable, couldn't position growth being strong be sustainable now in the environment we're in, given how many more retail investors, fractional shares, free trading? So, maybe just start there if you can.

Yeah, sure. Darrin, it's Tim. Thank you. Thank you very much. We feel very good about – let me just step back for a second. We feel very good about the long-term trends supporting our business and supporting our organic growth and our overall growth strategy, and we'll talk about that in December. And definitely as we were looking pre-crisis at our preliminary plans, we had a growth rate that was more in the 6% range. And as we have evaluated things and looked at where we are now, we see a few different factors knocking a couple of points off of that. One is a more cautious view on stock record growth. That is definitely baked into our plan. I can come back and talk about it in a second. The other is interest rates which affect our matrix unit. And the third is a little bit lower revenue from sales, not because we don't think our sales will be strong, but just focus a little bit on the pace of client implementation. And so, those three factors, just about equally weighted, account for about 2 points relative to what we would have thought was our initial plan. And we think that is prudent and that we'll be in a very good position. I think that positions us well to invest and it positions us well to really undertake any variety of scenarios. I think also on the event side, we're being the same as flat to this year which is pretty muted. And so, I think that takes a lot of risk out of this plan, but it really enables us to focus it on the investment.

Tim, I mean, just to quickly follow on to that, I mean the position growth or the record growth itself, I mean it looks like we're in this environment where retail investors are obviously more involved. And I think just it's easier to buy whether it's free trading or fractional shares. So, I guess I'd be curious why you're assuming a low-single-digit growth rate there. And then just broadly, I guess what I was really looking for is structurally speaking, given the environment we're in now with more digital transformation, what do you point to as where Broadridge is benefiting from this environment now because they can provide the needs for clients, whether it's banks or customer communications?

Yeah, absolutely. So, first of all, on the stock record growth, we don't have a crystal ball. What we saw was certainly good stock record growth this year, lower interim record growth. So, when you average those two together this year, it was about 5% and we're going into next year looking at something that's a little bit lower than that. On how we benefit from the increased digital demand, we see it really both on the communications side. We're seeing good growth in our digital communications. We're seeing it on the data and analytics side. We're seeing it – we're very excited about the launch of our digitally based Fixed Income trading platform. So, we're seeing it really across lots of different arenas, Darrin. Obviously, the strong growth in Virtual Shareholder Meetings, which we expect to continue this year, was a real nice pickup for us. And so, it's really across the breadth of our product areas.

Great. All right. That's great to see. Thanks, guys. Appreciate it.

Our next question today comes from David Togut with Evercore ISI. Please go ahead.

Thank you. Good morning. And all the best to you, Jim, in the next chapter.

Thanks, David.

Good to see the 55% new sales growth in the quarter and you did call out strong sales, in particular, in capital markets. Can you talk about the propensity of big banks to outsource in this environment, given some of the headwinds and tailwinds that they face?

Sure, David. We're seeing, I think, a really interesting tension there because their need is higher than ever. And then at the same time, because of all the complexity of everything's going on, there's a question about undertaking transformational projects. And so, I think one of the things that we really saw at the end of this year was a significantly higher demand for lots of smaller projects that can make a big impact. And so, we saw a lot of those and then some good medium-sized projects. And we were pleased that the derivatives deal that I spoke about, very transformational project for that institution and that's something they want to carry forward and move ahead with even despite the complexity of the pandemic and the complexity of doing everything remotely. So, we're seeing some institutions really moving forward strongly and taking advantage of this and investing. We're seeing other institutions hang back. We think the net-net of that, though, is going to be continued very positive sales. We did see really strong pickup in our international sales. So, our sales outside the US were up more than 50% and we see a continued strong pipeline outside the US as well, so really nice progress across the board.

Appreciate that. And then as a follow-up, can you update us on the onboarding and development process around the big UBS wealth management contract? And to what extent could that serve as, let's say, a launch pad in the business, given demand you might be seeing from other wealth managers currently?

Yeah. Absolutely. So, that project remains really well on track. We are very pleased with the progress there. We're continuing to strengthen our wealth capability, not just with that project, but also with the M&A that we've done and with some of the smaller component sales. And I'll come back to UBS in a second, but just to reiterate the recent acquisition of the RPM acquisition, the Rockall acquisition performing really, really strongly. I think as we look at UBS and what follows on from it, I think what we're seeing from the largest clients now is interest in seeing that go live, so with lots of discussions, but very much wanting to see that go live which is on track to do. But what it is doing is it is increasing our credibility overall in the wealth space, and so we're seeing significant increase in demand across the rest of our wealth portfolio. As you know, we appointed Mike Alexander President in the third quarter. That's been a key step in making this a stand-alone business and his leadership is really helping us well. So, across our wealth strategy, we feel really good. The UBS piece is one component of that. Our component solutions is another piece of it, and the strength of some of the new acquisitions is a third piece.

And our next question today comes from Peter Heckmann with D.A. Davidson. Please go ahead. Alexis Huseby - D.A. Davidson & Co.: Hi guys. This is Alexis Huseby on for Pete today. Thanks for taking our questions. So, you mentioned the distribution revenue would be flat to down in fiscal 2021 and I'm wondering if you can help us with the approximate impact to that that comes specifically from 30e-3.

I will take a crack at that, but I'm looking also at our CFO to see if he has a comment which he may not. I think it is broadly relatively small in this coming year. And as you know, we've said 30e-3 is a very mild positive for us, so not – we really think about it, since the distribution piece is really low-to-no margin, we really focus on the recurring piece. So, from an overall recurring revenue and profitability, we see it as neutral to a slight positive. Specifically, on the distribution revenue side, it's a mild negative, but not something that is really materially changing the numbers. Alexis Huseby - D.A. Davidson & Co.: Okay. That makes sense. And then I think I heard you mention 1% in recurring revenue, but could you help us with the approximate acquired revenue carried into fiscal 2021 from prior deals?

Yeah. This is Jim. That's correct. About a point of growth is embedded in our guidance. And if you recall, we had a couple deals come a little bit later in the year like Fi360 and FundsLibrary which we'll carry through, so it'll be about a point of growth in 2021.

And just as a reminder, so that's the carryover impact and our guidance never anticipates any M&A that might occur in the coming year.

And our next question today comes from Ken Hill with Rosenblatt. Please go ahead.

Hey, good morning. The question on data/analytics you guys had highlighted here in the slide deck that still in really good growth there. I was wondering just given the COVID environment, we've seen more and more peers really make greater investment in that area. How you guys are thinking about some initiatives here over the course of the next fiscal year to really kind of ramp up the offering there?

Yeah. So, there are a couple of areas, Ken, where I think this is interesting. So, most of our investment over the past few years in data/analytics has been in serving the fund industry. We have a suite of solutions that gives the fund industry transparency into fund flows, their sales, their share performance. And one of the key things that we've really done in terms of investment is pull together data sets that used to be disparate and that fund companies used to have to acquire from different places and knit together and that was very complex for them. And with our global distribution products, they can now have retail and institutional North America, Europe, Asia and pull all that into one data set. And that is something that is really helpful especially for the largest global asset managers. So, that continues to be a real growth area for us. And in this period of uncertainty and volatility, they're looking for even more transparency than ever. The other one I will just mention is not – we don't usually talk about it relative to data/analytics, but when you talk about leveraging the data we have, we've been working for quite a while in terms of how do we leverage the fixed income data that we have. And we were making some significant investments in that the past few years and the AI-enabled Fixed Income platform that we're about to launch this fall is something that is going to really leverage that fixed income data in a way institution by institution. That will bring AI to fixed income traders, allow them to figure out natural counterparties for complex trades and enable them to carry out those trades. And that's one of the things probably in the whole company that we're most excited about.

Got it. That's really helpful. One other question I had, you guys, historically, you've broken out a bit of a live, not live yet recurring revenue backlog. Any color on the $355 million, how that looks now?

Yes. So, kind of about two-thirds of that is not yet live at all. So, we've got obviously really good visibility and a whole bunch of – a bunch of this is sort of pure growth as we onboard it, recognizing there'll be a really large piece associated with the UBS deal, which really won't have any impact in 2021, more of a 2022 event.

And our next question today comes from Puneet Jain with JPMorgan. Please go ahead.

Hi. Thanks for taking my question. And, Jim, all the best and hope our paths cross again.

Thank you, Puneet.

So, one question, Tim, on pipeline, like how's your pipeline converting into revenue, any actual impact you have seen on implementations from the pandemic and also on the sales cycle? Just wanted to make sure like the recession impact on sales guidance, have you started seeing slowdown in the first four months or in the last four or five months versus being conservative, given the uncertainty?

Yeah. Puneet, thank you for that question. Broadly, the impact has been surprisingly low. And I'll talk about each of the different pieces. So, first of all, in terms of completing sales, obviously, we just had a terrific sales quarter. And to be fair, a lot of those sales were on the one-yard line at the beginning of the pandemic and we certainly saw institutions carrying on and finishing those. In terms of the sales cycle, obviously, we measure at each of the different stages in terms of pipeline creation and moving things through the pipeline. And we have seen modestly lower pipeline creation in the last 12 weeks. And I'll say it's a modest delta. It's not a huge delta. Part of it, Puneet, is we can't really be sure because, given the amount of focus that we had on closing that degree of business, it's very hard for us to discern whether lower pipeline creation is just our own capacity or anything that's going on out there in the world. So, that will develop. That is one of the reasons we're being slightly more cautious. But, again, it's a marginal difference. On the implementation side, we just finished the year of record revenue from new sales in terms of onboarding. We did see a few delays in some projects, but nothing canceled, just pushed out a few months. And we have built that into our plans for this year. And that is one of the things that was contributing a little bit to a bit of a decrement and a little bit more caution around our revenue outlook. That said, this next year is going to be another record in terms of revenue from newly onboarded sales. And as we think about our ongoing growth of the company, you know that revenue from new sales is a key driver for us. And that continues to accelerate and we see that continue to accelerate in the future. So, that remains a very positive solid long-term trend. This year will be another record. We just took our foot a little bit off the gas in terms of making sure that we are accounting for any potential delays that might arise.

Got it. Got it. And, Jim, I know you'll share a lot more info at the Analyst Day, but 100 basis points in margin expansion, how should we think about long-term margin beyond that? Specifically, given like some of the margin drivers that you talked about, like how should we think about like – are they like the long-term cuts versus more being like a near-term cuts? And can you also talk about drivers for long-term margin expansion?

Yeah. Puneet, well, as Tim highlighted, put this in context, we just finished three years where we averaged 83 basis points per year of margin expansion. That includes ending on a very low event-driven year. So, I think our ability to generate margin expansion is pretty good. And, clearly, as we look at this year, on what is relatively modest recurring growth, to sign up for another 100 basis points of margin expansion is an indicator that we constantly have abilities to improve our margins. Obviously, we got a pickup with more digital and less distribution over time. But we think some of the changes that we're making are long-term sustainable. If you think about private cloud initiatives, if you talk about real estate, some of those things are very durable. It doesn't mean that we're going to change our longer-term outlook. The team will go through that in December. But, obviously, we continue to feel really good about levers available to us and our ongoing ability to make this business even more efficient.

And our next question today comes from Patrick O'Shaughnessy with Raymond James. Please go ahead. Patrick O'Shaughnessy - Raymond James & Associates, Inc.: Hey, good morning, guys. Can I get some more detail on the sales momentum that you guys spoke to in the BRCC business? What type of mandates did you win during the quarter?

It's Tim, Patrick. Good morning. We had a really good sales year for BRCC this year, certainly the strongest sales that we've seen since it became part of Broadridge, and lots of solutions across both financial services, but other industries as well. In the fourth quarter, in particular, there were two really chunky deals, not mega deals, but two quite chunky deals: one from a large global bank and a piece of their business, not their whole business; and one from a large health insurer, which was a very significant part of their business. And so, we like that. As we talked about BRCC, as you know, one of our theses was really around using it to more deeply penetrate some of our largest clients, to bring digital sales as well as to drive bottom line. And if we look at BRCC this year, we feel really pleased with the performance at a very strong bottom line outperformance this year. Very good sales, stable revenue, off-boarding of that major client that we've always talked about complete. So, when you look at the different strategic indicators for this business, it is a positive traction on a number of fronts, not too early to declare mission accomplished, but very positive developments. Patrick O'Shaughnessy - Raymond James & Associates, Inc.: Got it. Thank you for that color, Tim. And then I appreciate some of your commentary on the modernization of fund communications, but I want to press you a little bit. How do you monetize kind of the notion of driving more engagement in lower cost content for funds to the extent that it could offset the revenue hit, that $60 million revenue hit, from not sending out those prospectuses anymore?

Yeah. Very well. Thanks for that question. Look, just before I get to that, just stepping back for a second. Obviously, based on what we do, we're for investor disclosure and this really reinforces that. And we do well when the communications that clients receive are relevant and when the cost of that whole ecosystem is getting better. And as we think this change, if it is ratified and go through, will create more engaging communications, it will create a better digital experience at lower cost for the industry. And so, it's really a win-win-win and no one is better positioned than Broadridge. So, if you just get into a tangible example, now first of all, we did want to size for everyone sort of what is the amount of revenue that's sort of in these annual prospectuses. That's not all going to go away. There are chunks of funds that will not – it's optional. It's optional for funds. It's optional for broker-dealers. They're closed-end funds. There are some funds that won't elect to do it. There are some brokers that won't elect to do it. And also because of the fact that people still need to let people know about changes, we think this will lead to higher supplementals. So, that whole $60 million is not going away, but it does create new opportunity because this rule is complex to implement. There's a complexity of creating new summaries. A lot of that stuff, the big thick documents today, are offset print. A lot of these will be more print-on-demand. And then there's digitally hosting clickable layered content. And I just want to give an example. So, in January, we're going live with our 30e-3 solution. And this is something we're doing for the industry as a whole. And…

And, ladies and gentlemen, this concludes our question-and-answer session today. I would now like to turn the conference back over to Tim Gokey for any final remarks.

Thanks, Rocco, and thank all of you on the call for joining us today. I just want to take a moment to reiterate our key messages. Our strong results highlight the importance of what we do and the strength of our business model. The pandemic has and will continue to accelerate the long-term trends driving our growth. Looking into 2021, we see continued revenue and adjusted EPS growth backed by a record revenue backlog. This outlook includes increased investments in products, platforms, and people. And finally, Broadridge remains well positioned for continued growth. We look forward to sharing more on our outlook at our Virtual Investor Day on December 8. Thank you again for tuning in today, and we look forward to seeing you then.

Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.