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Introduction to Broadridge
Samples of Data and Statistical Measurement




November 18, 2008
Broadridge

     Overview
         NYSE listed, $2+ billion (Lake Success, NY)

     „
         Investor communications, brokerage processing, and clearing services

     „
         Business model: Efficiency and participation

     „


     Advanced Technology, examples:
         Customized interfaces, connect 90m+ street accounts, through 900+ banks and broker-dealers

     „
         We process approx. 14k shareholder meetings annually -- communications and voting

     „
         ProxyEdge (3k+ institutional investors)

     „
         ProxyVote.com (17m+ “Main Street” accounts)

     „
         Investor Mailbox (portal for over 16m accounts, on brokers’ websites)

     „
         Direct mail to 90m+ investor accounts

     „
         Also, trade confirmations, statements, retirement plans 

     „


     Private Sector Leadership in Implementing SEC and NYSE Rules, examples:
          Investor “preference databases” for e-delivery, householding, and Notice & Access 

     „
          Electronic shareowner forums -- soft launch 10/20

     „
          XBRL taxonomy for the Proxy Statement (14A) -- donated to XBRL U.S.

     „
          Suppression of 54% of all physical mailings, consistent with investor preferences (‘08 proxy season)

     „
          Numerous education initiatives for investors and issuers

     „


     Constructive Analyses for Policy Makers, examples:
         Extensive analysis of Notice & Access rules: pre- and post rulemaking
     „
         Electronic shareowner forums - technical functionality for SEC Proxy Roundtable
     „
         Proxy Roundtable - over voting analysis for SEC Division of Trading & Markets
     „
         Mutual Fund Summary Prospectus delivery option - cost savings analysis, footnotes to proposed rules
     „
         NYSE Proxy Working Group - analysis of proposed changes to broker vote rule, analysis of Canada’s NI54-101
     „
         Analytic support to Senate Banking, House Financial Services, Departments and Agencies
     „
         Analytic support to third parties and associations (e.g., Chamber of Commerce, AARP, Council of Institutional
     „
         Investors, Society of Corporate Secretaries, National Investor Relations Institute)

1
Efficiency and Participation
     Proxy Season Statistics
                                           60                                                                                    54.1
                                                                                                                         49.1
    Physical Mailings Eliminated
                                                                                                                  45
                                           50
      (a measure of efficiency)                                                                           40.9
                                           40                                                     34.4
                                                                                           32
As a percent of all accounts
                                                                                     27
                                           30
processed by Broadridge
                                                                             18.6
                                           20
                                                                10.5 11.4
                                                         7.7
                                                 4.8
                                           10

                                            0
                                                '97     '98     '99    '00    '01    '02    '03     '04     '05    '06     '07     '08


          Average Quorum
                  92
     (a measure of participation)
                                                                90.7
                                           91                                              90.4
                                           90
Of the total number of street shares                                                88.9
processed by Broadridge, “Average          89
                                                                             88.2                                 88.1
                                                                      87.9
Quorum” represents the percent that                                                                       87.7
                                                               87.6
                                           88
                                                                                                                          87
were voted. Includes “Broker Votes”
                                           87                                                                                    86.4
                                                       86.2
                                           86
                                                85
                                           85
                                           84
                                           83
                                           82
Note: “Proxy Season” covers 2/15 to 5/1.        '97     '98     '99    '00    '01    '02    '03    '04     '05     '06    '07     '08


2
Notice & Access Provides Companies with Additional Savings Opportunity.
    Estimated First Year Net Savings: $ 143 Million

    Processes for beneficial shareholder                                                   By sending a Notice iinstead of a full set, Notice
     Processes for beneficial shareholder                                                  By sending a Notice nstead of a full set, Notice
    communication and proxy voting become more                                             & Access provides an additional tool to save on
     communication and proxy voting become more                                            & Access provides an additional tool to save on
    efficient every year. In 2007,, U.S. corporrate
     efficient every year. In 2007 U.S. corpo ate                                          printing and postage. To date, early adopters
                                                                                           printing and postage. To date, early adopters
    issuerrs overrall realized over $900 Million in savings
     issue s ove all realized over $900 Million in savings                                 overall have realized estimated $143 Million in
                                                                                           overall have realized estimated $143 Million in
    on printt and postage.*                                                                savings with Notice & Access.**
     on prin and postage.*                                                                 savings with Notice & Access.**

    Savings from the Elimination offPhy sical
    Savings from the Elimination o Physical                                                     Savings from Use of Notice & Access
    Mailings (2007) -- Excludes Notice &
    Mailings (2007) -- Excludes Notice &                                                        with Beneficial Shareholders
    Access Savings
    Access Savings

                                         $900 M+
              Est. Savings                                                                         Est. N&A Savings
              (2007): All                                                                          (to date): 653
              Issuers Overall                                                                      Companies

                Householding

                E-delivery
                (ProxyEdge®
                & Internet)
                                                                                                           Notice & 

                Managed                                                                                                          $143 M
                                                                                                           Access

                Account
                Processing

       * Approximately one-half of mailings are now                                            ** July 1, 2007 – June 30, 2008; net of
       being eliminated.                                                                          service fees.


       The unit savings estimate is based on information from NIRI and Broadridge internal data. It rep resents an average printed material cost of
       $4.38 across all beneficial meetings. Postage is calculated at $1.26 and is based on Broadridge actual data for the 2007 proxy season.


3
But the Savings Have Come at the Expense of “Main Street” Participation

    “Matched” Account Participation: Before and After Notice & Access


      Participation has decreased among the same account holders, especially among smaller investors.



                          Number of               # that Voted         # that Voted
     Size of                                                                              Percent Change +/(-)
     Account           Accounts in Range          Before N&A            After N&A
     (share range)

     < 1000                        5,982,606              868,027              343,941           (61)*

     1,000 - 4,999                  648,656               143,527               55,402           (61)


     5,000 - 9,999                    61,266               14,685                7,244           (51)

     10,000 - 49,999                  40,862               10,301                5,605           (46)

     > 50,000                          7,657                 2,324               1,626           (30)

          Total                    6,741,047             1,038,864             413,818           (60)


“Matched” accounts denotes the same account. Comparison of voting at the same companies -- with N&A
(current meeting) to without N&A (prior meeting, pre-N&A rules). Based on all 164 corporate shareholder
meetings from July 1, 2007 - April 30, 2008.

    * Includes mailings of a 2nd Notice (with a ballot) and full packages as a result of ‘consents’ and issuer
    stratification.
4
Notice & Action Rules Changed the “Default” on Information Access.

    Few Account Holders Are Taking the Required Steps

              A Notice informs investors of the Internet availability of proxy information. Investors
              now need to take steps to obtain the information they automatically received prior
              to Notice & Access.

     Numerous studies on “defaults” by behavioral economists in varied applications (e.g., 

        rebates for consumer electronics, 401(k) savings participation, no-fault insurance and 

        other areas) all to point to the same conclusion; namely, opt-in rates are low, opt-out 

        rates are low, and when there is a change in the underlying default, people typically take 

        no action, even when it is in their economic to act.


     By changing the underlying default, N&A reduced information access by over 96%. It has 

         also resulted in voting without viewing proxy information.


     Of 812,772 accounts that received Notices by mail*:

          Only 1.05% requested materials

          Only 3.7% went to the specified URL to view the materials or vote





     *Since the effective date of the rules (7/1/07), Broadridge has provided monthly statistics on adoption,
     voting rates, and cost savings. Since 5/1/08, Broadridge has also tracked statistics on web viewing. i.e.,
     “eyeballs.”


5
Responses to Notice Mailing
    Few Individual Investors View the Disclosures on the Specified URL.



       Number of            Number of Notice                            Number of Notice
        Notice          Recipients that Visited the                 Recipients that Visited the
       Recipients           Specified URL and                          Specified URL and
                                                             %                                           %
                        Selected “Read Materials”                        Selected “Vote”

         812,772                     2,593                  0.47                 21,115                 3.25




     Notes
     • Includes all 40 registrants that used Notice & Access (meetings from 6/1/08 to 9/26/08).
     • A total of 812,772 account holders received a Notice by mail.
     • Going to the URL and clicking on the “Vote” option opens a voting ballot and provides a link to view
     detailed information.
     • The “Read Materials” option presents the materials and includes the option to vote.




6
Investor Response Rates: Methods of Information Receipt vs. Method of Voting
Investors’ Existing Preferences Matter

    Investors who receive proxy information (mail or email) are more likely to use the
    Internet to vote than are investors who receive a Notice only.

              Voting Methods
                                       Total Items         Voting by           Voting by            Voting by          Voting by
                                          Sent            Paper Ballot        Paper Ballot       Internet Ballot    Internet Ballot
     Receipt of Info                       (#)                (#)                 (%)                  (#)                (%)


    Full Set Sent by Mail                    110,118              34,787                 31.8             26,626                23.0


    Notice Sent by Mail                      812,772                1,677                 0.4             21,115                     3.3


    Email Including Links                    328,651                   65                 0.1             37,351                12.5



    Notes
    • All 40 Notice & Access corporate issuers with meetings 6/1/08 to 9/26/08.
    • Distributions ranged from 1,226 to 966,578 accounts/issuer.
    • Total of 1,875,021 account holders. ProxyEdge (624,080 accounts) is a proprietary platform for institutional investors
    and financial advisors, and it is excluded.
    • Response rates represent an average of averages, i.e., on average for a given issuer. Differences due to rounding.
    • “Full Set by Mail” includes prior consents and issuer stratification of mailings.
    • “Email” delivery provides essentially the same experience for an account holder, with or without Notice & 

    Access, and is based on prior consent.

    • Prior “Consents” on file for 2.5 million account holders. Processing of prior consents and issuer stratification (e.g., full
    package to larger accounts) resulted in 11% of items mailed by full package (7/1/07 to 6/30/08).

7
Investor Mailbox



         Integrated web-based presentation of investor information, with execution capability, e.g., proxy,
    „	
         corporate actions, statements, tax forms, and prospectuses.

         Integrated with the proprietary websites of banks and brokers
    „	



         Over 16 million accounts
    „	



         “Enhanced” online information experience
    „	



         Provides information to investors in their natural online task environment.
    „	




8
Investor Mailbox




                       Proxy Analysis

                       Proxy Analysis




                       Proxy Analysis




                                        Access to data, information
                                        and analysis-XBRL based,
                                        data feeds, etc.

9
Investor Mailbox – E-mail Consent Growth



     Clients of brokers that have implemented the Investor Mailbox are consenting for e-delivery
     at increasing rates. It is providing an enhanced online delivery experience.

                                                                                                     Broker 2

                                                             16,000
                                                                                                                                        13,469
                                                             14,000
                                                             12,000
                                                             10,000
                                                              8,000
                                                                      4,525
                                                              6,000
                                                              4,000
                                                              2,000
                                                                  0




                                                                          n




                                                                        07
                                                                        07




                                                                        07




                                                                        08
                                                                        07


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                                                                        08
                                                                          7

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                                                                         7

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                                                                         7
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                                                                    ay
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                                                                 nv
                                                              Co
                                                 937,349
     1,000,000
       900,000
       800,000
       700,000
       600,000
       500,000   360,489
       400,000
       300,000
       200,000
       100,000
             0
                                                                                                     Broker 3
                    n




                                    07
                  07




                  07




                                    08
                  07


                    7




                                    08
                                     7

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                                                             50,000
        Co




                                                                                                                                    45,419
                                                             45,000
                                                             40,000
                                                             35,000
                                                             30,000
                                                             25,000
                                                             20,000
                                                             15,000
                                                             10,000
                                                                          6,208
                                                              5,000
                                                                  0
                                                                      Conversion   Sep-07   Oct-07       Nov-07   Dec-07   Jan-08   Feb-08




10
Some Practical Implications - for Discussion


     21st Century Disclosure Initiative -- SEC Roundtable on October 8

         Efficiency and participation = provide more access points, consistent with current preferences and defaults
     „



         When it comes to millions of individual investors, Internet “access” is not a replacement for information delivery.
     „



         Mandating changes to current “defaults” for disclosure delivery has been shown to negatively impact participation of
     „
         millions of investors.



     Mutual Fund Summary Prospectus Delivery

         Broad consensus on the need to create a more user-friendly prospectus document.
     „



         Significant savings on printing and postage
     „




11

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Statistics and Facts on E-proxy Implementation in the US

  • 1. Introduction to Broadridge Samples of Data and Statistical Measurement November 18, 2008
  • 2. Broadridge Overview NYSE listed, $2+ billion (Lake Success, NY) „ Investor communications, brokerage processing, and clearing services „ Business model: Efficiency and participation „ Advanced Technology, examples: Customized interfaces, connect 90m+ street accounts, through 900+ banks and broker-dealers „ We process approx. 14k shareholder meetings annually -- communications and voting „ ProxyEdge (3k+ institutional investors) „ ProxyVote.com (17m+ “Main Street” accounts) „ Investor Mailbox (portal for over 16m accounts, on brokers’ websites) „ Direct mail to 90m+ investor accounts „ Also, trade confirmations, statements, retirement plans „ Private Sector Leadership in Implementing SEC and NYSE Rules, examples: Investor “preference databases” for e-delivery, householding, and Notice & Access „ Electronic shareowner forums -- soft launch 10/20 „ XBRL taxonomy for the Proxy Statement (14A) -- donated to XBRL U.S. „ Suppression of 54% of all physical mailings, consistent with investor preferences (‘08 proxy season) „ Numerous education initiatives for investors and issuers „ Constructive Analyses for Policy Makers, examples: Extensive analysis of Notice & Access rules: pre- and post rulemaking „ Electronic shareowner forums - technical functionality for SEC Proxy Roundtable „ Proxy Roundtable - over voting analysis for SEC Division of Trading & Markets „ Mutual Fund Summary Prospectus delivery option - cost savings analysis, footnotes to proposed rules „ NYSE Proxy Working Group - analysis of proposed changes to broker vote rule, analysis of Canada’s NI54-101 „ Analytic support to Senate Banking, House Financial Services, Departments and Agencies „ Analytic support to third parties and associations (e.g., Chamber of Commerce, AARP, Council of Institutional „ Investors, Society of Corporate Secretaries, National Investor Relations Institute) 1
  • 3. Efficiency and Participation Proxy Season Statistics 60 54.1 49.1 Physical Mailings Eliminated 45 50 (a measure of efficiency) 40.9 40 34.4 32 As a percent of all accounts 27 30 processed by Broadridge 18.6 20 10.5 11.4 7.7 4.8 10 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 Average Quorum 92 (a measure of participation) 90.7 91 90.4 90 Of the total number of street shares 88.9 processed by Broadridge, “Average 89 88.2 88.1 87.9 Quorum” represents the percent that 87.7 87.6 88 87 were voted. Includes “Broker Votes” 87 86.4 86.2 86 85 85 84 83 82 Note: “Proxy Season” covers 2/15 to 5/1. '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 2
  • 4. Notice & Access Provides Companies with Additional Savings Opportunity. Estimated First Year Net Savings: $ 143 Million Processes for beneficial shareholder By sending a Notice iinstead of a full set, Notice Processes for beneficial shareholder By sending a Notice nstead of a full set, Notice communication and proxy voting become more & Access provides an additional tool to save on communication and proxy voting become more & Access provides an additional tool to save on efficient every year. In 2007,, U.S. corporrate efficient every year. In 2007 U.S. corpo ate printing and postage. To date, early adopters printing and postage. To date, early adopters issuerrs overrall realized over $900 Million in savings issue s ove all realized over $900 Million in savings overall have realized estimated $143 Million in overall have realized estimated $143 Million in on printt and postage.* savings with Notice & Access.** on prin and postage.* savings with Notice & Access.** Savings from the Elimination offPhy sical Savings from the Elimination o Physical Savings from Use of Notice & Access Mailings (2007) -- Excludes Notice & Mailings (2007) -- Excludes Notice & with Beneficial Shareholders Access Savings Access Savings $900 M+ Est. Savings Est. N&A Savings (2007): All (to date): 653 Issuers Overall Companies Householding E-delivery (ProxyEdge® & Internet) Notice & Managed $143 M Access Account Processing * Approximately one-half of mailings are now ** July 1, 2007 – June 30, 2008; net of being eliminated. service fees. The unit savings estimate is based on information from NIRI and Broadridge internal data. It rep resents an average printed material cost of $4.38 across all beneficial meetings. Postage is calculated at $1.26 and is based on Broadridge actual data for the 2007 proxy season. 3
  • 5. But the Savings Have Come at the Expense of “Main Street” Participation “Matched” Account Participation: Before and After Notice & Access Participation has decreased among the same account holders, especially among smaller investors. Number of # that Voted # that Voted Size of Percent Change +/(-) Account Accounts in Range Before N&A After N&A (share range) < 1000 5,982,606 868,027 343,941 (61)* 1,000 - 4,999 648,656 143,527 55,402 (61) 5,000 - 9,999 61,266 14,685 7,244 (51) 10,000 - 49,999 40,862 10,301 5,605 (46) > 50,000 7,657 2,324 1,626 (30) Total 6,741,047 1,038,864 413,818 (60) “Matched” accounts denotes the same account. Comparison of voting at the same companies -- with N&A (current meeting) to without N&A (prior meeting, pre-N&A rules). Based on all 164 corporate shareholder meetings from July 1, 2007 - April 30, 2008. * Includes mailings of a 2nd Notice (with a ballot) and full packages as a result of ‘consents’ and issuer stratification. 4
  • 6. Notice & Action Rules Changed the “Default” on Information Access. Few Account Holders Are Taking the Required Steps A Notice informs investors of the Internet availability of proxy information. Investors now need to take steps to obtain the information they automatically received prior to Notice & Access. Numerous studies on “defaults” by behavioral economists in varied applications (e.g., rebates for consumer electronics, 401(k) savings participation, no-fault insurance and other areas) all to point to the same conclusion; namely, opt-in rates are low, opt-out rates are low, and when there is a change in the underlying default, people typically take no action, even when it is in their economic to act. By changing the underlying default, N&A reduced information access by over 96%. It has also resulted in voting without viewing proxy information. Of 812,772 accounts that received Notices by mail*: Only 1.05% requested materials Only 3.7% went to the specified URL to view the materials or vote *Since the effective date of the rules (7/1/07), Broadridge has provided monthly statistics on adoption, voting rates, and cost savings. Since 5/1/08, Broadridge has also tracked statistics on web viewing. i.e., “eyeballs.” 5
  • 7. Responses to Notice Mailing Few Individual Investors View the Disclosures on the Specified URL. Number of Number of Notice Number of Notice Notice Recipients that Visited the Recipients that Visited the Recipients Specified URL and Specified URL and % % Selected “Read Materials” Selected “Vote” 812,772 2,593 0.47 21,115 3.25 Notes • Includes all 40 registrants that used Notice & Access (meetings from 6/1/08 to 9/26/08). • A total of 812,772 account holders received a Notice by mail. • Going to the URL and clicking on the “Vote” option opens a voting ballot and provides a link to view detailed information. • The “Read Materials” option presents the materials and includes the option to vote. 6
  • 8. Investor Response Rates: Methods of Information Receipt vs. Method of Voting Investors’ Existing Preferences Matter Investors who receive proxy information (mail or email) are more likely to use the Internet to vote than are investors who receive a Notice only. Voting Methods Total Items Voting by Voting by Voting by Voting by Sent Paper Ballot Paper Ballot Internet Ballot Internet Ballot Receipt of Info (#) (#) (%) (#) (%) Full Set Sent by Mail 110,118 34,787 31.8 26,626 23.0 Notice Sent by Mail 812,772 1,677 0.4 21,115 3.3 Email Including Links 328,651 65 0.1 37,351 12.5 Notes • All 40 Notice & Access corporate issuers with meetings 6/1/08 to 9/26/08. • Distributions ranged from 1,226 to 966,578 accounts/issuer. • Total of 1,875,021 account holders. ProxyEdge (624,080 accounts) is a proprietary platform for institutional investors and financial advisors, and it is excluded. • Response rates represent an average of averages, i.e., on average for a given issuer. Differences due to rounding. • “Full Set by Mail” includes prior consents and issuer stratification of mailings. • “Email” delivery provides essentially the same experience for an account holder, with or without Notice & Access, and is based on prior consent. • Prior “Consents” on file for 2.5 million account holders. Processing of prior consents and issuer stratification (e.g., full package to larger accounts) resulted in 11% of items mailed by full package (7/1/07 to 6/30/08). 7
  • 9. Investor Mailbox Integrated web-based presentation of investor information, with execution capability, e.g., proxy, „ corporate actions, statements, tax forms, and prospectuses. Integrated with the proprietary websites of banks and brokers „ Over 16 million accounts „ “Enhanced” online information experience „ Provides information to investors in their natural online task environment. „ 8
  • 10. Investor Mailbox Proxy Analysis Proxy Analysis Proxy Analysis Access to data, information and analysis-XBRL based, data feeds, etc. 9
  • 11. Investor Mailbox – E-mail Consent Growth Clients of brokers that have implemented the Investor Mailbox are consenting for e-delivery at increasing rates. It is providing an enhanced online delivery experience. Broker 2 16,000 13,469 14,000 12,000 10,000 8,000 4,525 6,000 4,000 2,000 0 n 07 07 07 08 07 7 08 7 07 07 07 7 7 7 -0 sio l-0 r- 0 -0 -0 v- n- n- n- b- b- g- p- c- ar ay Broker 1 ct Ju er Ap No Ja Ju Ja Fe Fe Au Se De M O M nv Co 937,349 1,000,000 900,000 800,000 700,000 600,000 500,000 360,489 400,000 300,000 200,000 100,000 0 Broker 3 n 07 07 07 08 07 7 08 7 07 07 07 7 7 7 -0 sio l-0 r- 0 -0 -0 v- n- n- n- b- b- g- p- c- ar ay ct Ju er Ap No Ja Ju Ja Fe Fe Au Se De M O M nv 50,000 Co 45,419 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 6,208 5,000 0 Conversion Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 10
  • 12. Some Practical Implications - for Discussion 21st Century Disclosure Initiative -- SEC Roundtable on October 8 Efficiency and participation = provide more access points, consistent with current preferences and defaults „ When it comes to millions of individual investors, Internet “access” is not a replacement for information delivery. „ Mandating changes to current “defaults” for disclosure delivery has been shown to negatively impact participation of „ millions of investors. Mutual Fund Summary Prospectus Delivery Broad consensus on the need to create a more user-friendly prospectus document. „ Significant savings on printing and postage „ 11