Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Day (December 2023)
143 slides from Broadridge Financial Solutions's investor day presentation, Dec 7, 2023
Slide 1: Powering and transforming financial markets
December 7, 2023 Powering and transforming financial markets EXHIBIT 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements The Broadridge Investor Day 2023 presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") contains “forward-looking statements” within the meaning of the Private Se
Slide 3: Use of Non-GAAP financial measures, KPIs and foreign exchange rates
3 Use of Non-GAAP financial measures, KPIs and foreign exchange rates Use of Non-GAAP Financial Measures This presentation includes certain Non-GAAP financial measures including Adjusted Operating income, Adjusted Operating income margin, Adjusted Net earnings, Adjusted earnings per share (“EPS”), F
Slide 4: Today's Agenda
4 Today’s Agenda TOPIC PRESENTERS Powering and transforming financial markets Tim Gokey, Chief Executive Officer Driving democratization and digitization Doug DeSchutter, Mike Tae, Co-Presidents, ICS Simplifying and innovating trading Vijay Mayadas, President, Capital Markets Modernizing wealth mana
Slide 5: Powering and transforming financial markets
Presented by December 7, 2023 Powering and transforming financial markets Tim Gokey Chief Executive Officer
Slide 6: Broadridge is powering and transforming financial markets
6 Broadridge is powering and transforming financial markets We have a unique position in a large and growing market… With a clear strategy to capture the opportunity across our three franchises… Driving attractive long- term returns with top- quartile TSR
Slide 7: We have a unique network and business model
7 We have a unique network and business model… Regulatory Bodies & Trade Associations Broker-dealers & Wealth Managers Investors Public Companies & Funds 10,000+ Corporate issuers 1,000+ Banks and broker-dealers 30,000+ Mutual funds and ETFs 200,000+ Financial advisors 150,000+ Institutional shareho
Slide 8: Powering a scale business at the intersection of financial services
8 Powering a scale business at the intersection of financial services Wealth Managers 30,000+ Mutual funds and ETFs 120,000+ Institutional shareholders 170M+ Retail shareholder accounts Capital Markets Firms Asset Managers Corporate Issuers • 14 of 15 largest U.S. wealth providers • 30% U.S. advisor
Slide 9: We serve a $60B+ vended market
9 We serve a $60B+ vended market… FY'20 FY'23 +30% Source: McKinsey & Co. Vended Addressable Market Growth $46B $60B Governance Capital Markets $25B $24B FY’23 Vended Addressable Market Wealth & IM $12B 100% = $60B
Slide 10: With significant additional opportunity
10 With significant additional opportunity… BR Vended 27% 73% $225B Total Addressable Market Total Vended 5-6% 7-9% Annual Growth Rate Source: McKinsey & Co.
Slide 11: Long track record of growth and shareholder value
11 Resulting in a long track record of growth and shareholder value $2.6 $2.7 $2.9 $4.1 $4.3 $4.4 $4.5 $5.0 $5.7 $6.1 $2.25 $2.47 $2.73 $3.13 $4.19 $4.66 $5.03 $5.66 $6.46 $7.01 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Adjusted EPS Total Revenue ($B) 10% Recurring Revenue CAGR 14%
Slide 12: Our growth is underpinned by secular demand drivers
12 Our growth is underpinned by secular demand drivers Digitization of communications Acceleration of trading Democratization of investing Data and artificial intelligence Regulation Governance Capital Markets Wealth & IM
Slide 13: We have aligned our business around these long-term drivers
13 We have aligned our business around these long-term drivers Extend Governance ▪ Scaled to enable doubling of equity and fund positions ▪ Crossed $100M threshold in digital revenues ▪ Expanded data & analytics with European fund data, board reporting ▪ Extended our capabilities across the entire t
Slide 14: Driving democratization and digitization in governance
14 We are driving democratization and digitization in governance… Funds Asset Managers Public Companies Broker-Dealers FY’23 Recurring revenue: $2.5B FY’18-23 Avg. annual growth: 9% Governance Growth Opportunities ✓ Drive democratization in regulatory communications ✓ Digitize communications ✓ Lever
Slide 15: Simplifying trading in capital markets
15 Simplifying trading in capital markets… FY’23 Recurring revenue: $965M FY’18-23 Avg. annual growth: 14% Capital Markets Growth Opportunities ✓ Optimize trading and connectivity ✓ Simplify post-trade ✓ Deliver transformation and innovation Front-office Back-office Middle-office Note: Information a
Slide 16: Modernizing wealth management
16 …and modernizing wealth management Broadridge Enterprise Integration Services Broadridge Post-Trade Components and Services Broadridge Advisor Workstation Wealth Advisor Component Solutions Client Apps Partner Apps FY’23 Recurring revenue: $560M FY’18-23 Avg. annual growth: 10% Wealth & Investmen
Slide 17: Franchises underpinned by clients, technology, and culture
17 Our franchises are underpinned by world class clients, technology, and culture Clients Engaged AssociatesNext-Gen Technology
Slide 18: Talented and engaged associates drive business impact
18 Our talented and engaged associates and client-focused culture drive real business impact Associate Engagement “Broadridge is a Great Place to Work” 73% 83% FY'20 FY'23
Slide 19: Strong capital stewardship contributes to top-quartile shareholder returns
19 Our strong capital stewardship contributes to top-quartile shareholder returns M&A Internal Investment Dividend Share repurchase Maintain investment grade Drive ~100% FCF conversion, monetize recent investments, return ROIC to mid-high teens Capital Allocation Priorities ✓ Fund high return intern
Slide 20: Strong and experienced management team
20 We have a strong and experienced management team Today’s speakers Doug DeSchutter Co-President, ICS Mike Tae Co-President, ICS Vijay Mayadas President, Capital Markets Tom Carey President, GTO Chris Perry President, Head of Global Sales Dipti Kachru Chief Marketing Officer Tyler Derr Chief Techno
Slide 21: Better positioned than ever to drive sustainable long-term growth
21 Broadridge is better positioned than ever to drive sustainable long-term growth We have a unique position in a large and growing market… With a clear strategy to capture the opportunity across our three franchises… Driving attractive long- term returns with top- quartile TSR
Slide 22: Driving democratization and digitization in Governance
Co-Presented by December 7, 2023 Driving democratization and digitization in Governance Michael Tae Co-President, Investor Communication Solutions Doug DeSchutter Co-President, Investor Communication Solutions
Slide 23: Driving democratization and digitization in Governance
23 Driving democratization and digitization in Governance Enable democratization via next-gen Regulatory Deliver Data-Driven Fund Solutions Simplify governance for Issuers Transform omni-channel Customer Communications GOVERNANCE NETWORK
Slide 24: Extending our strong and growing Governance franchise
24 We continue to extend our strong and growing Governance franchise FY19 FY20 FY21 FY22 FY23 $25B Addressable market 9% Avg. annual growth $2.5B Recurring revenue Note: Growth in constant currency. Information about our use of Non-GAAP measures and reconciliations to GAAP measures may be found on s
Slide 25: We have a unique network and business model
25 We have a unique network and business model… Regulatory Bodies & Trade Associations Broker-dealers & Wealth Managers Investors Public Companies & Funds 10,000+ Corporate issuers 1,000+ Banks and broker-dealers 30,000+ Mutual funds and ETFs 200,000+ Financial advisors 150,000+ Institutional shareh
Slide 26: Large global market opportunity
26 …with a large global market opportunity ~100 Markets 9.1T+ Shares 58k Public companies 400M+ Investors 137k Funds
Slide 27: Our client promise: safer, smarter, more efficient
27 Our client promise: a safer, smarter, and more efficient experience Top cybersecurity standards Certified quality Trusted compliance network Safer Investor visibility Proprietary intelligent suppression Data & AI-powered insights Smarter Digital first Operational resiliency Scale efficiencies Mor
Slide 28: Client-first culture of innovation is consistently recognized
28 Our client-first culture of innovation is consistently recognized 2023 SIFMA’s Excellence in Operations Award 2023 IDC FinTech Rankings Top 100 2023 Leader in Everest Group’s Product PEAK Matrix® Assessment 2023 Leader in Aspire CCM to CXM Leaderboard 2023-24 Document Strategy Hot Companies 2023
Slide 29: Enable democratization via next-gen Regulatory
29 Enable democratization via next-gen Regulatory $1.1B Recurring revenue 12% Avg. annual growth FY19 FY20 FY21 FY22 FY23 Constant need for innovative compliance solutions Continued equity, mutual fund, and ETF position growth Growth Drivers Note: Growth in constant currency. Information about our u
Slide 30: Democratization of investing is driving position growth
30 Democratization of investing is driving position growth FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 10-Year Average Growth Note: Position growth indexed to 100 in 2013. Reflects position growth processed in the same time period of both years. 11% 9% Blended Average Equity Po
Slide 31: Sustainable fundamentals underscore consistent position growth
31 Sustainable fundamentals underscore consistent position growth Position Growth (~9%) More Positions per Investor (5-7%) More Investors (2-4%) Investing Population Growth Market Participation Growth Population growth brings new investors An increasing portion of the population invests Demographics
Slide 32: More investors contribute to position growth
32 242M 262M 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 49% 59% More investors contribute to position growth U.S. Adult Population U.S. Families Holding Stock Sources: Survey of Consumer Finances, Board of Governors of the Federal Reserve Board and U.S. Census encompassing 2013-2022 time
Slide 33: More positions per investor drives growth across generations
33 ⏹ Average positions for mutual funds and ETFs ⏹ Average positions for equities More positions per investor drives growth across all generations 4.3 4.5 1.1 3.25.3 7.7 0 2 4 6 8 10 12 14 16 18 20 2018 2022 6.2 6.7 2.7 6.08.9 12.6 0 2 4 6 8 10 12 14 16 18 20 2018 2022 8.2 9.2 4.4 8.512.6 17.8 0 2 4
Slide 34: Helping clients navigate constant regulatory change
34 We continue to help clients navigate constant regulatory change… 304 SEC Final Rules, Since 2010 22 Average Per Year 2 7 11 12 21 10 4 4 5 10 2 7 11 5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 111 UK and European Directives, Since 2010 8 Average Per Year Notes: UK 2022
Slide 35: Creating a consistent market for innovative compliance solutions
35 …creating a consistent market for innovative compliance solutions Patented Inline Summary Prospectus ProspectusView Investor/Advisor Mailbox End-to-End Vote Confirmation SEC Rule 15c 2011 – 2015 Notice and Access Rule Virtual Shareholder Meeting Mobile Device (Access and Voting) SEC Rule 22-c 200
Slide 36: Success in Regulatory allows us to extend Governance franchise
36 Success in Regulatory allows us to extend our Governance franchise $0.7B $0.2B $0.4B $1.1B FY'19 FY'20 FY'21 FY'22 FY'23 $2.5B ICS Recurring Revenue Avg. annual growth 9% 12% Regulatory Data-Driven Fund Solutions Issuer Customer Communications 10% 16% 03% Note: Growth in constant currency. Inform
Slide 37: Deliver Data-Driven Fund Solutions
37 Deliver Data-Driven Fund Solutions $404M Recurring revenue 10% Avg. annual growth Retirement Technology and Analytics Global Distribution Insights FY19 FY20 FY21 FY22 FY23 Growth Drivers Note: Growth in constant currency. Information about our use of Non-GAAP measures and reconciliations to GAAP
Slide 38: Global Distribution Insights
38 Robust data $100T+ in AUM tracked and analyzed across retail, institutional and private markets High domain expertise Human powered solutions to augment powerful data and analytics Actionable analytics platform Integrated platform to analyze competitive, operational, and regulatory data for smart
Slide 39: Retirement Technology and Analytics
39 Retirement Technology and Analytics support the industry’s largest retirement needs Improving participant engagement Enabling prudent fiduciary standards Powering scalable platforms Personalized multi-channel communications for plan participants Education, designations, software, and data & analy
Slide 40: Simplify governance for Issuers
40 Simplify governance for Issuers $243M Recurring revenue 16% Avg. annual growth Regulatory composition and disclosure Data and analytics capabilities FY19 FY20 FY21 FY22 FY23 Growth Drivers Omni-channel engagement tools Note: Growth in constant currency. Information about our use of Non-GAAP measu
Slide 41: Helping issuers navigate complexity of reaching shareholders
41 We help issuers navigate the complexity of reaching shareholders Aggregate Complexity Annual shareholder meeting and proxy disclosures Ongoing regulatory reporting (e.g., 10K, 10Q) Other event-driven disclosures (M&A, capital raise) Special shareholder meetings and related disclosures New regulat
Slide 42: Issuer data, composition and omni-channel solutions
42 Data and Insights to bring transparency to shareholder base, including demographic, voting patterns, and composition information Identifying and analyzing Composition solutions to create effective investor communications and enhance the marketing + regulatory experience Composing and customizing
Slide 43: Largest US public companies choose Broadridge
43 The result: many of the largest and most well-known US public companies choose Broadridge 3,100+ Public company clients 343 S&P 500 clients 85 S&P 100 clients
Slide 44: Transform omni-channel Customer Communications
44 Transform omni-channel Customer Communications $673M Recurring revenue 3% Avg. annual growth Growth Drivers Large omni-channel outsourcing opportunities Demand for next-gen digital solutionsFY19 FY20 FY21 FY22 FY23 Note: Growth in constant currency. Information about our use of Non-GAAP measures
Slide 45: Executing on three primary goals from previous Investor Days
45 We continue to execute on the three primary goals shared at previous Investor Days Larger long-term opportunity Digital Network Leveraging print to expand and transform digital relationships Exceeded $100M in high-growth digital revenue Compelling near-term financial benefits Achieve Synergies Ac
Slide 46: Key investments: Broadridge Communications Cloud
46 We are continuing our focus on key investments… OMNI-CHANNEL CUSTOMER EXPERIENCE FLEXIBLE MODULES AND OPEN APIS Omni-Channel Composition Identity & Preference Management Information & Journey Management Omni-Channel Delivery Analytics & Reporting Broadridge Communications Cloud℠ A modern communic
Slide 47: Better experiences and economics for clients
47 …delivering better experiences and economics for our clients Tailored Shareholder Reports Wealth Statements Proxy Voting
Slide 48: Video: InFocus Platform
Video InFocus Platform
Slide 49: Our innovation is recognized by the industry
49 Our innovation is recognized by the industry Everest Group Digital Experience Platforms (DXP) in Asset and Wealth Management (AWM) Products PEAK Matrix® Assessment 20231
Slide 50: Next-gen experiences deliver strong business outcomes
50 Fee Revenue Better economics for clients Higher customer engagement rates Broadridge strategic alignment Next-gen experiences deliver strong business outcomes 3x Click-throughs 10x Account information views Paper and Postage Processing Processing Saves Billions in communications costs Print Digit
Slide 51: Governance: our strategy is working
51 Driving democratization and digitization in Governance Enable democratization via next-gen Regulatory Deliver Data-Driven Fund Solutions Simplify governance for Issuers Transform omni-channel Customer Communications ✓ Our strategy is working ✓ The ICS network is our greatest asset ✓ Four healthy
Slide 52: Simplifying and innovating trading
December 7, 2023 Capital Markets Simplifying and innovating trading Vijay Mayadas President, Capital Markets Presented by
Slide 53: Simplifying and innovating across a complex ecosystem
53 Simplifying and innovating across a complex ecosystem We deliver simplification, transformation and innovation across the trade lifecycle We do this through global, scalable SaaS platforms that support the largest capital markets firms We are a market leader in capital markets technology solution
Slide 54: Leading capital markets technology provider
54 Broadridge is a leading capital markets technology provider $24B Addressable market $965M Recurring revenue 14% Avg. annual growth FY19 FY20 FY21 FY22 FY23 Note: Growth in constant currency. Information about the use of Non-GAAP measures and reconciliations to GAAP measures may be found on slides
Slide 55: Global simplification, transformation and innovation across trade lifecycle
55 Best Sell-Side Outsourcing Provider 2016-23 Best Distributed-Ledger Technology 2023 Best in AI 2023 Best OMS 2021-22 Best Equity E/OMS 2023 Best Use of AI in Investment/Trading 2023 Best Reconciliation Platform 2023 Best Outsourcing Provider 2020-2022 Best Distributed Ledger Solution 2021-23 We d
Slide 56: $56B market: well positioned to grow
56 $56B $24B vended addressable market + $32B in-house Ops & Tech spend 67% of Capital Market firms plan to replace or significantly upgrade one or more critical systems Costs and complexity are driving firms to search for ways to simplify the trade lifecycle Firms are looking to consolidate trading
Slide 57: Technology powers the entire trade lifecycle
57 Broadridge technology powers the entire trade lifecycle Initiate order Buy-side Sell-side Middle-office Lifecycle Events • Trade Confirmation • Allocation of Trade to Sub-accounts • Trade Validation Middle-office Matching and Allocation Market Participants Back-office Lifecycle Events • Trade Cle
Slide 58: Driving simplification and innovation across the trade lifecycle
58 Driving simplification and innovation across the trade lifecycle from trading to post-trade Optimizing trading and connectivity We optimize front-office trading and execution through our standard platform across both principal and agency markets Simplifying post-trade We enable sell-side clients
Slide 59: Optimizing and simplifying trading and connectivity in front-office
59 Optimizing and simplifying trading and connectivity in the front-office State-of-the-art platform Advanced trade order management Mission-critical, multi-asset, multi-market FIX network Delivering sophisticated automation and intelligent data flows Broad client connectivity, trade order routing a
Slide 60: Driving simplification in post-trade
60 Advanced technology that enables rapid component delivery Driving simplification in post-trade Industry Leading Solutions Equities | Fixed Income | Exchange Traded Derivatives | MBS | FX | Digital Assets Modern Technology Components Unified User Experience API Framework Enterprise Messaging Enter
Slide 61: Integrated front-to-back solutions
61 Enable better trading decisions and client insights by sharing post-trade data with front-office applications Increase Straight Through Processing (STP) and efficiency by reducing reconciliations and trade breaks Streamline post-trade operations with normalized data and integrated trade and trans
Slide 62: BondGPT and Distributed Ledger Repo
62 BondGPT incorporates Generative AI technology empowering users to trade smarter Leading innovations in technologies that will profoundly shape capital markets Databases, APIs and Calculated Values Web App LTX platform, API User Experience Reasoning Data Retrieval Memory & Insights Compliance Simu
Slide 63: Video: Capital Markets Innovation
Video Capital Markets Innovation
Slide 64: Broadridge's market position is strong
64 Broadridge’s market position is strong FRONT-TO-BACK DEPTH OF SOLUTIONS A ss et C la ss es , G eo gr ap h ie s B R E A D T H O F C O V E R A G E We differentiate through front-to-back integration across geographies and asset classes In-house builds by large firms, traditionally our main competito
Slide 65: Marquee Clients and Recent Wins
65 Marquee Clients and Recent Wins Our relationship with clients as a trusted, resilient partner is a key driver of sustainable growth Deepening client relationships Expanding wallet share front-to-back Favorable market trends
Slide 66: Simplifying and innovating across a complex ecosystem
66 Simplifying and innovating across a complex ecosystem We deliver simplification, transformation and innovation across the trade lifecycle We do this through global, scalable SaaS platforms that support the largest capital markets firms We are a market leader in capital markets technology solution
Slide 67: Modernizing wealth management
Presented by December 7, 2023 Modernizing wealth management Tom Carey President, GTO
Slide 68: Modernizing wealth management
68 Modernizing wealth management Our component based wealth platform powers clients’ growth We personalize investor experiences, optimize advisor productivity, and digitize operations Broadridge is a leading North American Wealth Fintech provider Our unique offering drives our go-to-market approach
Slide 69: Building a leading North American wealth management technology franchise
69 We are building a leading North American wealth management technology franchise $12B Addressable market 10% Avg. annual growth $560M Recurring revenue FY19 FY20 FY21 FY22 FY23 Note: Growth in constant currency. Information about the use of Non-GAAP measures and reconciliations to GAAP measures ma
Slide 70: Leading wealth Fintech with established market presence
70 Leading wealth Fintech with established market presence Industry Recognition Top 14 of 15 largest U.S. wealth providers use Broadridge components 120M+ accounts serviced via Broadridge’s platforms $15T+ in assets custodied on Broadridge’s platforms 37 of 100 of Barron’s Top 100 advisors use Broad
Slide 71: Wealth management is a dynamic and growing market
71 Wealth management is a dynamic and growing market Market conditions are evolving and forcing advisors to adapt Demographic shifts are changing the nature of wealth management services Regulatory demands and increasing margin pressure are causing firms to transform Accelerated demand for digital s
Slide 72: Component based ecosystem with open architecture
72 Component based ecosystem with open architecture that redefines wealth management technology Flexible, scalable platform designed to help firms drive innovation and perform more efficiently Delivers digital, modernized advisor capabilities with easy integration through published APIs Integrated t
Slide 73: Video: Wealth Platform
Video Wealth Platform
Slide 74: Personalizing the investor experience
74 Personalizing the investor experience Helping advisors deepen relationships – and grow their business Streamlines investor experience with our integrated components Delivers personalized communications and content Broad suite of component solutions power the experience Statements Online Self-Serv
Slide 75: Optimizing advisor productivity
75 Optimizing advisor productivity Delivering growth and giving advisors higher connectivity to clients Advisor Websites Client Communications Advisor Workstation Securities Based Lending Advisor Compensation Data Aggregation Trading & Order Management Cash & Liability Management Fiduciary Toolkits
Slide 76: Digitizing operations
76 Digitizing operations Compliance & Surveillance Alternative Investments Clearance & Settlement Tax Services Account Transfers Cash Management Regulatory Reporting Asset Servicing Margin & Collateral Management Administration & Recordkeeping Select Components Integrated technology that streamlines
Slide 77: Broadridge's market position is strong
77 B R E A D T H O F O F F E R IN G BREADTH OF SERVICE Fintechs Front Office Back Office Broadridge’s market position is strong Strength in position from our deep capabilities Leading front- to back- office solutions for North America Deep domain expertise with proven delivery and innovation capabil
Slide 78: Wealth Platform unlocks value across wealth segments
78 Our Wealth Platform unlocks value across wealth segments WEALTH MANAGEMENT SEGMENTS $8B Full-service brokerages $3B Independents and RIAs $1B Private banks BROADRIDGE WEALTH PLATFORM
Slide 79: Marquee Clients and Recent Wins
79 Marquee Clients And Recent Wins Strong focus on go-to-market and distribution Industry Event Marketing Client Early-Access to Solutions Partnership Distribution Tailored Client Engagement Year-on-Year Pipeline Acceleration Accelerating Client Engagement
Slide 80: Modernizing wealth management
80 Modernizing wealth management Our component based wealth platform powers clients’ growth We personalize investor experiences, optimize advisor productivity, and digitize operations Broadridge is a leading North American Wealth Fintech provider Our unique offering drives our go-to-market approach
Slide 81: Driving growth with next-generation technology
December 7, 2023 Driving growth with next-generation technology Tyler Derr Chief Technology Officer Presented by
Slide 82: Driving growth with next-generation technology
82 We are driving growth with next-generation technology Broadridge is a Fintech leader playing a crucial role in powering financial services We are putting the tech into Fintech with a four-pillar technology strategy We are helping our clients evolve and transform their business models
Slide 83: Scaled Fintech leader with modern technology and domain expertise
83 Broadridge is a scaled Fintech leader serving the industry with modern technology and global domain expertise Critical for the industry Leading scale and technology Innovating for clients 28 of 29 G-SIBs1 use at least one Broadridge service $10T of fixed income and equity trades processed per day
Slide 84: Putting the Tech into Fintech
84 Leading in data security Gaining compounding benefits from our position at the center of the highly regulated financial services industry Building architecture of the future Investing in a scalable platform that uses next-generation architecture Unlocking the power of data Leveraging our vast ind
Slide 85: Leading in data security
85 We stay at the vanguard of security by constantly learning from clients and regulators We gain compounding benefits by sitting at the center of a highly regulated industry Exceed security expectations of clients Anticipate and adapt to new regulations Certify our security and resiliency as world-
Slide 86: Modern architecture: cloud-first, data-centric, services-based
86 We are investing in a modern architecture that is cloud-first, data-centric, and services-based Flexible to deploy and integrate Cost efficient Scalable with clients Highly secure Cloud-first technology platforms Agile microservices Unified UI framework Optimized central data architecture + + + =
Slide 87: Unlocking the power of data
87 BRx Harmonized Data Model We are unlocking data to inform decisions, accelerate innovation, and build competitive differentiation Real Time Processing* Advisors Brokers Issuers Investors Funds Institutions Broadridge Data Hub Unified Data Infrastructure Exchanges Regulators Liquidity Providers Ma
Slide 88: Harnessing artificial intelligence
88 We are harnessing artificial intelligence as an enabler for growth and efficiency Improving productivity and efficiency throughout the enterprise Protecting client and IP at every step for Broadridge and our clients Commercializing innovative, AI-enabled capabilities for our clients Enhancing the
Slide 89: Wealth InFocus: transforming investor communications
89 Wealth InFocus: transforming investor communications For Cetera’s investors… 78% said Wealth InFocus provides a better digital experience 88% would like to receive Wealth InFocus communications going forward “ Wealth InFocus is a cutting-edge communications experience that is already improving cl
Slide 90: OpsGPT: supercharging operations productivity
90 OpsGPT: supercharging operations productivity OpsGPT® is a foundational AI-enabled capability trained on curated and harmonized data from our global post-trade systems. It will augment operations teams by providing real- time insights and recommended actions using natural language. Real-time visi
Slide 91: Creating lasting value for clients, industry and Broadridge
91 Creating lasting value for our clients, the financial services industry, and Broadridge We are driving growth with next-generation technology Broadridge is a Fintech leader playing a crucial role in powering financial services We are putting the tech into Fintech with a four-pillar technology str
Slide 92: Extending and deepening our client franchise
December 7, 2023 Extending and deepening our client franchise Chris Perry President Head of Global Sales Co-presented by Dipti Kachru Global Chief Marketing Officer
Slide 93: Extending and deepening our client franchise
93 Broadridge is extending and deepening our client franchise Attractive, established, and diversified client relationships across the globe Differentiated value proposition powered by our trusted brand, deep domain expertise, and proven capabilities Immense growth opportunity across segments and in
Slide 94: Expansive, established, diversified client relationships
94 Our expansive, established, and diversified client relationships are a key driver of our growth ATTRACTIVE AND ESTABLISHED CLIENT BASE Relative size of Broadridge relationship by location Broadridge has long- standing relationships with many global and regional firms that make up the $60B vended
Slide 95: Proven relationships with influential global financial firms
95 We have proven relationships with the most influential global financial firms across the breadth of our services Top 10 Wealth Firms Top 10 Global Asset Managers Top 9/10 Custody Banks Top 6 Canadian Banks Top 10 Global Corporate Investment Banks
Slide 96: Engaging various functions across clients' organizations
96 As our capabilities have expanded, so has our success in engaging and serving various functions across our clients’ organizations A shift from vendor to trusted and valued partner Building off our primary relationship with operations executives, we are now actively engaging the front-office funct
Slide 97: Broadridge brand leads in awareness and reputation
97 The Broadridge brand leads in awareness and reputation – with key attributes of being trusted and proven Provides value to my business Is a trusted partner who always acts in my interest of my business Takes ownership and responsibility for everything they do Understands my business to identify t
Slide 98: The One Broadridge Advantage
98 The One Broadridge Advantage: Our value proposition is anchored around our clients’ needs We are trusted and transformative, with a unique ability to serve our clients, and the industry across their entire portfolio of needs Unparalleled expertise across governance, regulatory and global markets
Slide 99: Client testimonial: Société Générale
“ 99 Mike Walsh Head of Capital Markets Société Générale We partner with Broadridge because their solutions, backed by extremely high service standards, help us drive efficiency and innovation in our business. Their global scale and deep industry expertise help us improve our operations, respond to
Slide 100: We make it easy for clients to do more with Broadridge
100 We make it easy for clients to do more with Broadridge Our established relationships help remove risk and friction from a complex and extended buying process Fully executed Master Services Agreements Completed information security and cybersecurity reviews Industry recognized attestations or cer
Slide 101: Revenue grew by 32% across our top-20 clients
101 Revenue grew by 32% across our top-20 clients DIFFERENTIATED VALUE PROPOSITION 27% Increase of product groups sold to our top-20 clients since 2019 32% Revenue growth for top-20 clients since 2019 2019 2020 2021 2022 2023
Slide 102: Building on the equity of the Broadridge brand
102 We continue to build on the strong equity of the Broadridge brand to drive demand and reinforce our market leadership DIFFERENTIATED VALUE PROPOSITION Leadership role in industry forums Modern demand generation and digital experience Proprietary research and thought leadership
Slide 103: Significant opportunity to increase market share
103 SIGNIFICANT GROWTH OPPORTUNITY We have a significant opportunity to increase market share Governance $2.5B FY’23 Recurring Revenue $25B Addressable Market $965M FY’23 Recurring Revenue $24B Addressable Market $12B Addressable Market $560M FY’23 Recurring Revenue Capital Markets Wealth & IM
Slide 104: Accelerating growth outside North America
104 MIDDLE EAST INDIA POLAND CZECH ROMANIA AUSTRALIA UK NORDICS ITALY IRELAND BELGIUM GERMANY FRANCE SPAIN NETHERLANDS JAPAN HONG KONG SINGAPORE PHILIPPINES Accelerating our growth outside North America remains a key area of opportunity IMMENSE GROWTH OPPORTUNITY 24% FY’18–23 Recurring revenue CAGR
Slide 105: Proven go-to-market playbook
105 We are confident in capturing the opportunity with our proven go-to-market playbook 98% Client revenue retention rate Enabled by a carefully orchestrated playbook that reduces friction and enables multi-product long-term client relationships Broadridge Expertise Broadridge Relationship Managemen
Slide 106: Relentless focus on client satisfaction
106 We maintain a relentless focus on client satisfaction – a key element of our approach 90% of our clients have responded as Satisfied or Very Satisfied IMMENSE GROWTH OPPORTUNITY Data from Broadridge Annual Client Satisfaction Survey Process for years 2020-2023 Robust NPS program with an enterpri
Slide 107: Relationship expansion with a top tier global bank
107 Case study: relationship expansion and deepening with a top tier global bank 2020 2021 2022 2023 11% Average annual growth Global Proxy & SRD II Class Action Notifications Governance Services, Beneficial Proxy Managed Account Processing Transfer Agency ETF & Retirement Billing ETF Mutual Funds R
Slide 108: Extending and deepening our client franchise
108 Broadridge is extending and deepening our client franchise Attractive, established, and diversified client relationships across the globe Differentiated value proposition powered by our trusted brand, deep domain expertise, and proven capabilities Immense growth opportunity across segments and i
Slide 109: Client testimonial: DriveWealth
“ 109 Harry Temkin Chief Digital Officer, DriveWealth “ It has been a phenomenal partnership. We couldn't be happier with the decision that we made to come back to Broadridge. And we look forward to this partnership over the many years to come and expect between the two of us to continue to grow bot
Slide 110: A financial model powering sustainable long-term growth with high returns
Presented by December 7, 2023 A financial model powering sustainable long-term growth with high returns Edmund Reese Chief Financial Officer
Slide 111: Financial model drives steady and consistent earnings
111 Broadridge’s financial model drives steady and consistent earnings Strong Free cash flow generation positions Broadridge for attractive capital return and investments High-return, growth- oriented investments that drive ROIC growth Positioned to deliver continued strong top and bottom-line growt
Slide 112: Business and financial model positioned for sustainable growth
112 Broadridge’s strong business and financial model is positioned to drive sustainable, long-term growth Recurring Revenue Balanced Capital Allocation TSR Adjusted EPS 100% Free cash flow conversion and mid-to-high teen ROIC 7-9% Sustainable growth 8-12% Steady and consistent growth Top-Quartile TS
Slide 113: Compounding TSR business
113 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 S&P500 BR Our steady and consistent earnings growth and capital return has resulted in a compounding TSR business… $0.72 $2.90 FY'13 FY'23 $1.88 $7.01 FY'13 FY'23 14% 10-year CAGR EARNINGS PER SHARE DIVIDENDS PER SHARE
Slide 114: Consistently delivered on three-year objectives
114 …that has consistently delivered on its three-year objectives over multiple cycles CAGR FY’14 – FY’17 FY’17 – FY’20 FY’20 – FY’23 Organic Recurring revenue growth1 5% 5% 8% Recurring revenue growth 7%2 7% 11%3 Adj. Operating income margin expansion (bps/yr) (Non-GAAP)3 532 80 77 Adj. earnings pe
Slide 115: Recurring revenue growth in line with or above objectives
115 The model begins with Recurring revenue growth which has grown in line with or above our three-year objectives for the last 10 years RECURRING REVENUE GROWTH 66% 9% 6% 9% 7% 6% 6% 10% 10% 16% 9% FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 RECURRING DISTRIBUTION EVENT-DRIVEN $6B F
Slide 116: Closed sales conversion to revenue contributes 6pts
116 The biggest driver has been converting Closed sales to revenue – which has consistently contributed 6pts to Recurring revenue growth Note: In FY’17, Recurring revenue growth excludes $424MM from the acquisition of NACC. As reported in FY’17, recurring revenue rose 29% SALES CONTRIBUTION TO RECUR
Slide 117: High demand and long runway for growth
117 The demand for our products is high and we have a long runway for growth… RECURRING REVENUE GROWTH Tech & Ops addressable market Third party spend BROADRIDGE CLOSED SALES +5% +8% Growth Rates +9% $225B $60B Source: McKinsey & Co. Closed sales represents CAGR from FY’14 to midpoint of FY’24 guida
Slide 118: Closed sales growth replenishing Revenue Backlog
118 …driven by Closed sales growth replenishing our Revenue Backlog and providing visibility to future growth RECURRING REVENUE GROWTH FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 Guidance $400M FY’23 RECURRING REVENUE BACKLOG …which represents 10% FY’23 RECURRING REVENUE CLOSED
Slide 119: Strong retention across client base
119 We continue to have strong retention across our client base RECURRING REVENUE GROWTH RECURRING REVENUE RETENTION RATE 97% 97% 98% 98% 97% 97% 98% 98% 98% 98% FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23
Slide 120: Internal contribution to recurring revenue growth
120 FY'24-FY'26 Est. Avg 4pts Position Growth: 14% FY'21 FY'22 FY'23 INTERNAL CONTRIBUTION TO RECURRING REVENUE GROWTH FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 Avg 2pts Position Growth: 7% 3pts 5pts 4pts4pts 1pt 1pt 2pts 2pts 1pt 1pt Elevated position growth has increased the internal growth contri
Slide 121: Organic Recurring revenue growth of 5-8% for FY'24-FY'26
121 The demand for our products and secular tailwinds supports organic Recurring revenue growth of 5-8% for FY’24-FY’26 RECURRING REVENUE GROWTH RECURRING REVENUE GROWTH DRIVERS Beginning Recurring revenue Closed Sales Client Losses Internal Growth Acquisitions Ending Recurring revenue 5-7pts (2)pts
Slide 122: Event-driven revenue
122 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 Guidance EVENT-DRIVEN REVENUE 219 284 244 175 235 269 211 $ in millions $250M - $234M AVERAGE $230M We expect high quality event-driven revenue to be in line with the 7-year average. Over time, we expect event-driven revenue to grow in line with po
Slide 123: Investments in high return opportunities
123 Investments are a key part of our financial model. We invest in high return opportunities that enable us to sustain a high level of Recurring revenue growth RECURRING REVENUE GROWTH CAPEX Client Platform Investment OPEX Medium Term Long Term Product Enhancement Digital (e.g. InFocus) DLR Sales &
Slide 124: History of margin expansion
124 160 120 10 40 80 120 40 60 60 110 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 19.8% FY'14 FY'23 AOI MARGIN EXPANSION HISTORY (bps; NON-GAAP) 50 bps Avg Annual Expansion Target 10 Year average Annual AOI margin expansion 80 bps Broadridge has a long history of being able to expand
Slide 125: AOI margin expansion
125 Core Expansion Interest Income 60 11050 AOI MARGIN EXPANSION (bps; NON-GAAP) Distribution 124 64 (30) 0 80 90 130 60 (10) (70) (30) FY'21 FY'22 FY'23 FY'24-FY'26 Est. (40) (70) 50 50+ bps Margin Expansion Reported margins are impacted by float income and distribution revenue, which have an immat
Slide 126: Operating leverage drives margin expansion
126 Broadridge generates operating leverage through scale, higher- margin digital growth and cost efficiency, allowing us to fund growth investments while delivering margin expansion RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION Scale Digital Expense Mgt & Efficiency Investmen
Slide 127: ~100% Free cash flow conversion expected FY'24-FY'26
127 After an elevated investment phase, we expect to generate a ~100% Free cash flow conversion in FY’24-FY’26… RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION HIGH FREE CASH FLOW CONVERSION GOING FORWARD: ~100% FREE CASH FLOW CONVERSION FY’14-FY’26 FCF CONVERSION 112% 77% FY'14
Slide 128: Dividend that grows in line with earnings
128 …enabling us to stay committed to a dividend that grows in line with earnings… RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION 17% 29% 11% 10% 11% 33% 11% 6% 11% 13% 10% GROWTH IN ANNUAL DIVIDEND 45% Target dividend payout ratio 11 Out of 12 years with double-digit dividend
Slide 129: Balancing investment for growth with capital return
129 …and balance investment for growth with capital return to shareholders RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION 55% 45% 20% 80% FY'09-FY'19 FY'20-FY'23 FY'24-FY'26 Dividends and Share Repurchases Organic and M&A BALANCED CAPITAL ALLOCATION ELEVATED INVESTMENT PERIOD G
Slide 130: Disciplined capital allocation creates shareholder value
130 Our strong capital position and disciplined capital allocation is expected to continue to create value for shareholders… RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION $ in billions 1. Assumes ~100% Free cash flow conversion in FY24 - FY’26 2. Add’l Debt capacity assumes le
Slide 131: Mid-to-high teen ROIC over next three years
131 Disciplined Capital allocation Growing returns on BTCS and Wealth Management 8-12% Earnings growth … and along with strong organic growth and payback on investment will drive a mid-to-high teen ROIC over the next three years RECURRING REVENUE GROWTH EARNINGS GROWTH BALANCED CAPITAL ALLOCATION No
Slide 132: Reaffirming full-year guidance for FY'24
132 We are reaffirming our full-year guidance for FY’24… FY’24 GUIDANCE UPDATES/CHANGES Recurring revenue growth constant currency (Non-GAAP) 6 - 9% No Change Adjusted Operating income margin (Non-GAAP) ~20% No Change Adjusted earnings per share growth (Non-GAAP) 8 - 12% No Change Closed sales $280M
Slide 133: New three-year growth objectives FY'24-FY'26
133 …and are setting new three-year growth objectives for FY’24 – FY’26, reflecting the strength and sustainability of the Broadridge financial model New 3yr Growth Objectives FY’24 – FY’26 (CAGR) Organic Recurring revenue growth 5-8% Recurring revenue growth constant currency (Non-GAAP) 7-9% Adjust
Slide 134: Explanation of non-GAAP measures and reconciliation
December 7, 2023 Explanation of non-GAAP measures and reconciliation of GAAP to non-GAAP measures
Slide 135: Non-GAAP measures
135 Non-GAAP measures Explanation and Reconciliation of the Company’s Use of Non-GAAP Financial Measures The Company’s results in this presentation are presented in accordance with U.S. generally accepted accounting principles ("GAAP") except where otherwise noted. In certain circumstances, results
Slide 136: Non-GAAP measures
136 Non-GAAP measures We exclude Acquisition and Integration Costs, IBM Private Cloud Charges, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, Russia-Related Exit Costs, the Software Charge, Loss (Gain) on Acquisition-Related Financial Instrument, the Gain on Sale of a Joint
Slide 137: Reconciliation of GAAP to Non-GAAP Measures
137 Reconciliation of GAAP to Non-GAAP Measures Year ended June 30, Dollars in millions 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Operating Income (GAAP) $936.4 $759.9 $678.7 $624.9 $652.7 $598.1 $534.0 $502.3 $468.5 $418.3 $337.1 Adjustments: Amortization of Acquired Intangibles and Pu
Slide 138: Reconciliation of GAAP to Non-GAAP Measures
138 Reconciliation of GAAP to Non-GAAP Measures (a) Real Estate Realignment Expenses were $23.0 million, $29.6 million, and $0.0 million for the years ended June 30, 2022, 2021, and 2020, respectively. Covid-19 Related Expenses were $7.5 million, $15.7 million, and $2.4 million for the years ended J
Slide 139: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
139 Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Year ended June 30, Dollars in millions, except per share amounts 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Diluted earnings per share (GAAP) $5.30 $4.55 $4.65 $3.95 $4.06 $3.56 $2.70 $2.53 $2.32 $2.12 $1.69 Adjustments: Amorti
Slide 140: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
140 Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Fiscal Year Ended June 30, 2023 Investor Communication Solutions Regulatory Data-Driven Fund Solutions Issuer Customer Comms. Total Recurring revenue growth (GAAP) 6% 11% 12% 9% 8% Impact of foreign currency exchange —% 1% —% —% —% Recurrin
Slide 141: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
141 Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Year ended June 30, Dollars in millions 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net cash flows from operating activities (GAAP) $823.3 $443.5 $640.1 $598.2 $617.0 $693.6 $515.9 $437.7 $431.4 $387.7 Capital expenditures and Softwar
Slide 142: Reconciliation: Fiscal Year 2024 Guidance
142 (a) Based on forward rates as of November 2023. (b) Adjusted Operating income margin guidance (Non-GAAP) is adjusted to exclude the projected $225 million impact of Amortization of Acquired Intangibles and Purchased Intellectual Property, Acquisition and Integration Costs, and Russia-Related Exi
Slide 143: Investor Relations Contacts
December 7, 2023 Investor Relations Contacts W. Edings Thibault Edings.Thibault@broadridge.com Greg Faje Greg.Faje@broadridge.com Sean Silva Sean.Silva@broadridge.com
Broadridge Financial Solutions — Investor Day (December 2023) on 6ix