Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Investor Presentation (March 2023)

43 slides from Broadridge Financial Solutions's investor presentation, Mar 2, 2023

1. Slide 1: Scaling a Global Fintech Leader

   0© 2023 | Scaling a Global Fintech Leader Investor Presentation March 2023 EXHIBIT 99.1

2. Slide 2: Forward-looking statements

   1© 2023 | This 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 Securities Litigation Reform Act of 1995. Stateme

3. Slide 3: Use of Non-GAAP Financial Measures

   2© 2023 | 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”), Free cash flow, and Recurring revenue growth constant currenc

4. Slide 4: A clear path for long term growth

   3© 2023 | A clear path for long term growth A global Fintech leader addressing a large and growing market Three franchise businesses executing on clear growth strategies grounded in long term trends Long track record delivering consistent growth and strong total shareholder returns 2014 Invest for G

5. Slide 5: Broadridge is a global Fintech leader

   4© 2023 | Broadridge is a global Fintech leader Managing proxy voting for 750 million equity shareholder positions Powering $9T per day in fixed income and equity trades Distributing more than 7B critical communications each year 750 MILLION $9 TRILLION 7 BILLION Broadridge powers the critical infra

6. Slide 6: $60 billion and growing market opportunity

   5© 2023 | Technology and operations spend by global banks is over $190 Billion Broadridge has a $60 billion and growing market opportunity $60B CURRENT OPPORTUNITY $22B GOVERNANCE $23B CAPITAL MARKETS $16B WEALTH

7. Slide 7: Three strong growing franchises with $3.7 billion in Recurring revenue

   6© 2023 | Capital Markets $903M Recurring Revenue 14% Average Annual Growth Wealth & Investment Management $550M Recurring Revenue 11% Average Annual Growth Governance $2.3B Recurring Revenue 8% Average Annual Growth $3.7B FY’22 RECURRING REVENUE Three strong growing franchises with $3.7 billion in

8. Slide 8: The Broadridge financial model

   7© 2023 | The Broadridge financial model is focused on driving steady revenue growth and consistent earnings per share growth, generated by: Continued margin expansion from our scale and operational efficiencies Balanced capital allocation leveraging our strong free cash flow businesses Investments

9. Slide 9: Strong track record of delivering growth and value

   8© 2023 | $4.19 $4.66 $5.03 $5.66 $6.46 2.5 3.5 4.5 5.5 6.5 7.5 1000 1500 2000 2500 3000 3500 4000 FY'18 FY'19 FY'20 FY'21 FY'22 Recurring revenue growth Adjusted EPS Strong track record of delivering growth and value $M except for per share measures 10% Recurring revenue average annual growth 11% A

10. Slide 10: Consistent margin expansion

    9© 2023 | 13.8% 15.0% 13.8% 13.6% 13.3% Consistent margin expansion Note: Information about our use of Non-GAAP measures and a reconciliation to closest GAAP measures may be found on slides 31 - 41 15.9% 17.1% 17.5% FY'18 FY'19 FY'20 FY'21 FY'22 +120 bps +40 bps +60 bps Efficiency Contributions from

11. Slide 11: Track record of delivering consistent growth and strong TSR

    10© 2023 | Track record of delivering consistent growth and strong TSR FY’14 – FY’17 (CAGR) FY’17 – FY’20 (CAGR) Three-year Growth Objectives (CAGR) FY’20 – FY’23 Organic Recurring revenue growth1 5% 5% 5-7% Recurring revenue growth 7%2 7% 7-9% Adj. Operating Income Margin expansion (bps/ year) (Non

12. Slide 12: Investor Communication Solutions Segment Overview

    11© 2023 | Investor Communication Solutions SEGMENT OVERVIEW

13. Slide 13: ICS Strategy

    12© 2023 | ICS Strategy Extend our strong and growing Governance franchise Grow End-to-End Issuer Solutions Build Data-Driven Fund Solutions Drive Next-Gen Regulatory Transform Omni-Channel Communications A leader at the heart of a powerful governance network Recurring revenues of $2.3B and average

14. Slide 14: Our network links investors, asset managers, and issuers

    13© 2023 | Our network links investors, asset managers, and issuers across North America 170M+ Retail shareholder accounts 120,000+ Institutional shareholders 30,000+ Mutual funds and ETFs ISSUERS OF SECURITIES SHAREHOLDERS 200,000+ Financial advisors 9,000+ Corporate issuers REGULATORY BODIES & TRA

15. Slide 15: Key volume drivers: position and trade volume growth

    14© 2023 | 1% 2% 8% 7% 3% 8% 11% 6% 10% 26% 18% 9% 11% 11% 8% 4% 4% 10% 9% 2% 10% 14% FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 Equity MF/ETF ITG EQUITY & MUTUAL FUND/ETF POSITION GROWTH Key volume drivers: position and trade volume growth 1% (4)% 8% 3% 2% 3% 13% 6% 9% 12% 1%

16. Slide 16: The importance of corporate governance continues to grow

    15© 2023 | The importance of corporate governance continues to grow Technology is driving increased participation and diversification for retail investors New technologies are lowering the cost of investing and bringing in new investors.  ETFs  Managed Accounts  Zero commission trading  Enhanced

17. Slide 17: ICS segment overview

    16© 2023 | ICS segment overview FY'18 FY'19 FY'20 FY'21 FY'22 8% ICS FISCAL YEAR RECURRING REVENUES $615 $216 $364 $1,075 FY'21 FY'22 +11% $2,270 YoY Growth +15% +6% +14% 8% Regulatory Customer Communications Data-Driven Fund Solutions Issuer Avg. Annual Growth 4% 7% 6% $2.3B11% 11%

18. Slide 18: Global Technology and Operations Segment Overview

    17© 2023 | Global Technology and Operations SEGMENT OVERVIEW

19. Slide 19: GTO fiscal year recurring revenues

    18© 2023 | $701M $558M GTO FISCAL YEAR RECURRING REVENUES $550 $903 FY'21 FY'22 $1,452 +39% +5% YoY Growth FY'18 FY'19 FY'20 FY'21 FY'22 Wealth & Investment Management Capital Markets 18% 4%10% 24%13% Avg. Annual Growth $1.5B GTO Strategy: Grow Capital Markets franchise and continue building next-ge

20. Slide 20: Capital Markets overview

    19© 2023 | Capital Markets overview 1. In equity and fixed income trades processed on average per day • A global leader in post-trade processing for cash securities • Continued growth driven by evolution of global banks • Launching AI-powered fixed income trading platform • Itiviti adds strength, sc

21. Slide 21: Itiviti acquisition is delivering value for Broadridge

    20© 2023 | Itiviti (BTCS) acquisition is delivering value for Broadridge 1 Significantly strengthen Capital Markets franchise  Deepening relationships at key clients  Enhancing liquidity, market making, and trade processing across trade lifecycle  Developing capabilities to drive front-to-back so

22. Slide 22: Wealth & Investment Management overview

    21© 2023 | • Leading provider of back-office capabilities • Strong set of differentiated component solutions for front- and middle-office • Launching the industry’s only unified front-to-back technology platform • Growing Integrated Investment Management Suite Wealth & Investment Management overview

23. Slide 23: Fiscal second quarter 2023 summary

    22© 2023 | Fiscal second quarter 2023 summary

24. Slide 24: Key messages as of February 2, 2023 earnings call

    23© 2023 | Key messages as of February 2, 2023 earnings call Broadridge delivered strong second quarter results including 8% Recurring revenue growth constant currency and 11% Adjusted EPS growth 1 2 3 4 Broadridge continues to execute on key long term growth initiatives across Governance, Capital M

25. Slide 25: Second quarter summary financial results

    24© 2023 | SECOND QUARTER SUMMARY FINANCIAL RESULTS 2023 2022 Inc./(Dec.) Recurring revenues $840 $793 6% Total revenues 1,293 1,260 3% Operating income 108 69 57% Adjusted Operating income – Non-GAAP 173 141 23% Diluted earnings per share $0.48 $0.40 20% Adjusted earnings per share – Non-GAAP $0.91

26. Slide 26: Second quarter 2023 segment Recurring revenues

    25© 2023 | $138 $235 Q2'22 Q2'23 $163 $27 $96 $181 Q2'22 Q2'23 Regulatory Customer Comms. Data-Driven Fund Solutions Issuer 12% 11% 11% 9% ICS RECURRING REVENUES GTO RECURRING REVENUES $467 Capital Markets Wealth & Investment Management $373 12% (3%) +10% Information about our use of Non-GAAP measur

27. Slide 27: Second quarter 2023 Total revenue growth drivers

    26© 2023 | $65 $59 $70 $63 $38 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Total Revenue Recurring Event-Driven Distribution FX Q2'23 Total Revenue QUARTERLY EVENT-DRIVEN REVENUE 4 pts (2) pts 1 pt 3% SECOND QUARTER 2023 TOTAL REVENUE GROWTH DRIVERS $58M FY’16-FY’22 QUARTERLY AVERAGE $ in millions. Pts cont

28. Slide 28: Closed sales remain on track with fiscal year 2023 guidance

    27© 2023 | FY'21 FY'22 FY'23 $231 $280 $ in millions CLOSED SALES H1'22 H1'23 $112 $94 $270 – $310 Closed sales remain on track with fiscal year 2023 guidance

29. Slide 29: Client platform spend and FCF conversion

    28© 2023 | 1. Net investments on new client conversions, including development of platform capabilities 2. Last twelve months (LTM) Free cash flow conversion equals Free cash flow for the most recent four quarters divided by Adjusted Net earnings for the same four quarters 3. Information about our u

30. Slide 30: Capital allocation

    29© 2023 | TOTAL CAPITAL RETURNS $1.94 $2.16 $2.30 $2.56 $2.90 33% 11% 6% 11% 13% DIVIDENDS PER SHARE M&A Client Platform Investments CapEx and Software 2 1. Includes Software purchases and capitalized internal use software 2. Net investments on new client conversions, including development of platf

31. Slide 31: Fiscal Year 2023 Guidance

    30© 2023 | Fiscal Year 2023 Guidance as of February 2, 2023 FY’23 Guidance Updates/ Changes Recurring revenue growth constant currency - Non-GAAP 6 - 9% No Change Adjusted Operating income margin - Non-GAAP Increase of ~ 50 bps No Change Adjusted earnings per share growth - Non-GAAP 7 - 11% No Chang

32. Slide 32: Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures

    31© 2023 | Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures

33. Slide 33: Non-GAAP measures explanation

    32© 2023 | 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, r

34. Slide 34: Non-GAAP adjustments explanation

    33© 2023 | We exclude Acquisition and Integration Costs, IBM Private Cloud Charges, Real Estate Realignment and Covid-19 Related Expenses, the Russia-Related Exit Costs, Investment Gains, the Software Charge, the Gain on Acquisition-Related Financial Instrument and the Gain on Sale of a Joint Ventur

35. Slide 35: Adjusted operating income reconciliation

    34© 2023 | 1Confidential and Proprietary | Year ended June 30, Dollars in millions 2022 2021 2020 2019 2018 2017 2016 2015 2014 Operating Income (GAAP) $759.9 $678.7 $624.9 $652.7 $598.1 $534.0 $502.3 $468.5 $418.3 Adjustments: Amortization of acquired intangibles and purchased intellectual property

36. Slide 36: Adjusted earnings per share reconciliation

    35© 2023 | 1Confidential and Proprietary | (Unaudited) Year ended June 30, Dollars in millions, except per share amounts 2022 2021 2020 2019 2018 2017 2016 2015 2014 Diluted earnings per share (GAAP) $4.55 $4.65 $3.95 $4.06 $3.56 $2.70 $2.53 $2.32 $2.12 Adjustments: Amortization of acquired intangib

37. Slide 37: Quarterly operating income and net earnings reconciliation

    36© 2023 | 1Confidential and Proprietary | (Unaudited) Three Months Ended Dec. 31 Six Months Ended Dec. 31 Dollars in millions 2022 2021 2022 2021 Operating income (GAAP) $107.9 $68.9 $195.4 $172.1 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 53.7 62.5 109.5

38. Slide 38: Adjusted earnings per share reconciliation notes

    37© 2023 | 1Confidential and Proprietary | (Unaudited) (a) Real Estate Realignment Expenses impacted Adjusted earnings per share by $0.00 for the three and six months ended December 31, 2021. Covid-19 Related Expenses impacted Adjusted earnings per share by $0.02 and $0.03 for the three and six mont

39. Slide 39: Recurring revenue growth reconciliation, three months

    38© 2023 | 1Confidential and Proprietary | (Unaudited) Global Technology and Operations Capital Markets Wealth and Investment Management Total Recurring revenue growth (GAAP) 6% (5)% 2% Impact of foreign currency exchange 6% 3% 5% Recurring revenue growth constant currency (Non-GAAP) 12% (3)% 6% Thr

40. Slide 40: Recurring revenue growth reconciliation, six months

    39© 2023 | 1Confidential and Proprietary | (Unaudited) Global Technology and Operations Capital Markets Wealth and Investment Management Total Recurring revenue growth (GAAP) 8% (1)% 4% Impact of foreign currency exchange 5% 2% 4% Recurring revenue growth constant currency (Non-GAAP) 13% 1% 8% Six M

41. Slide 41: Free cash flow conversion reconciliation

    40© 2023 | 1Confidential and Proprietary | (Unaudited) (a) Last twelve months (LTM) sums the last four quarters of Free cash flow for the given period (b) Last twelve months (LTM) sums the last four quarters of Adjusted Net earnings for the given period (c) Free cash flow conversion is calculated as

42. Slide 42: Fiscal year 2023 guidance reconciliation

    41© 2023 | 1Confidential and Proprietary | Fiscal Year, 2023 FY23 Recurring revenue growth (a) Impact of foreign currency exchange – Recurring revenue growth constant currency – Non-GAAP 6-9% FY23 Adjusted Operating income margin (b) Operating income margin % - GAAP Increase of ~150 bps Adjusted Ope

43. Slide 43: Broadridge Investor Relations Contacts

    42© 2023 | W. Edings Thibault Greg Faje Sean Silva broadridgeir@broadridge.com Broadridge Investor Relations Contacts

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