Broadridge Financial Solutions, Inc. · NYSE:BR

Broadridge Financial Solutions — Investor Presentation (May 2022)

41 slides from Broadridge Financial Solutions's investor presentation, May 16, 2022

1. Slide 1: Scaling a Global Fintech Leader

   0© 2022 | Scaling a Global Fintech Leader Fourth Quarter Fiscal Year 2022 Investor Presentation EXHIBIT 99.1

2. Slide 2: Forward-Looking Statements

   1© 2022 | Forward-Looking Statements This presentation and other written or oral statements made from time to time by representatives of Broadridge Financial Solutions, Inc. ("Broadridge" or the "Company") may contain “forward-looking statements” within the meaning of the Private Securities Litigati

3. Slide 3: Use of Non-GAAP financial measures, KPIs and foreign exchange rates

   2© 2022 | 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 (“

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

   3© 2022 | 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© 2022 | Broadridge is a global Fintech leader Manage more than 2 billion critical mutual fund and equity proxy communications per year Powering $9T per day in fixed income and equity trades >2 BILLION $9 TRILLION Broadridge powers the critical infrastructure behind investing, governance, and commu

6. Slide 6: We have a strong track record of delivering growth and value

   5© 2022 | $2,452 $2,612 $2,760 $2,946 $3,228 $3.13 $4.19 $4.66 $5.03 $5.66 2 2.5 3 3.5 4 4.5 5 5.5 6 1000 1500 2000 2500 3000 3500 FY'17 FY'18 FY'19 FY'20 FY'21 Recurring revenue Adjusted EPS We have a strong track record of delivering growth and value $M except for per share measures 11% Recurring

7. Slide 7: Broadridge has a $52 billion and growing market opportunity

   6© 2022 | Technology and operations spend by global banks is over $190 Billion Broadridge has a $52 billion and growing market opportunity $52B CURRENT OPPORTUNITY $19B GOVERNANCE $21B CAPITAL MARKETS $12B WEALTH

8. Slide 8: Three strong growing franchises with $3.2 billion in Recurring revenue

   7© 2022 | Capital Markets $661M Recurring Revenue 8% Four-Year Average Growth Wealth & Investment Management $525M Recurring Revenue 13% Four-Year Average Growth Governance $2.0B Recurring Revenue 7% Four-Year Average Growth $3.2B FY’21 RECURRING REVENUE Three strong growing franchises with $3.2 bil

9. Slide 9: Track record of delivering consistent growth and strong TSR

   8© 2022 | 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-

10. Slide 10: Investor Communication Solutions Segment Overview

    9© 2022 | Investor Communication Solutions SEGMENT OVERVIEW

11. Slide 11: ICS Strategy

    10© 2022 | 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 $2.0B and 4-year a

12. Slide 12: Our network links investors, asset managers, and issuers across North America

    11© 2022 | 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

13. Slide 13: Key volume drivers: position and trade volume growth

    12© 2022 | 1% 2% 8% 7% 3% 8% 11% 6% 10% 26% 21% 9% 11% 11% 8% 4% 4% 10% 9% 2% 10% 15% FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 YTD 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

14. Slide 14: The importance of corporate governance continues to grow

    13© 2022 | 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

15. Slide 15: ICS Segment Overview

    14© 2022 | ICS Segment Overview FY'18 FY'19 FY'20 FY'21 11% 7% ICS FISCAL YEAR RECURRING REVENUES $568 $570 $156 $189 $331 $344 $783 $940 FY'20 FY'21 $1,839 $2,042 YoY Growth +20% +4% +21% 0% Regulatory Customer Communications Data-Driven Fund Solutions Issuer Avg. Annual Growth 4% 7% 6% $2.0B

16. Slide 16: Global Technology and Operations Segment Overview

    15© 2022 | Global Technology and Operations SEGMENT OVERVIEW

17. Slide 17: GTO fiscal year recurring revenues

    16© 2022 | $701M $558M GTO FISCAL YEAR RECURRING REVENUES $492 $525 $615 $661 FY'20 FY'21 $1,107 $1,186 +7% +7% YoY Growth FY'18 FY'19 FY'20 FY'21 Wealth & Investment Management Capital Markets 18% 4%10% 7% 10% Avg. Annual Growth $1.2B GTO Strategy: Grow Capital Markets franchise and continue buildi

18. Slide 18: Capital Markets Overview

    17© 2022 | 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

19. Slide 19: Simplification, mutualization, front-to-back digitization

    18© 2022 | Simplification Clients are looking to simplify their technology stack and operating models and reduce solution fragmentation Mutualization Market pressures are accelerating front office mutualization Front-to-back digitization Firms are looking to drive deeper integration and automation a

20. Slide 20: Wealth & Investment Management Overview

    19© 2022 | • 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

21. Slide 21: Broadridge Business Model

    20© 2022 | Broadridge Business Model

22. Slide 22: The Broadridge financial model

    21© 2022 | 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

23. Slide 23: Maintaining closed sales momentum

    22© 2022 | FY'20 FY'21 FY'22 $240 – $280 $228 $232 Guidance We are maintaining closed sales momentum… $ in millions CLOSED SALES FY'20 FY'21 FY’21 SALES BACKLOG $355 $385 12% 12% % OF RECURRING REVENUE

24. Slide 24: ...while continuing to expand margin

    23© 2022 | 13.8% 15.0% 13.8% 13.6% …while continuing to expand margin Note: Information about our use of Non-GAAP measures and a reconciliation to closest GAAP measures may be found on slides 32-39 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

25. Slide 25: Capital allocation

    24© 2022 | TOTAL CAPITAL RETURNS 4 YTD'21 YTD'22 $1.94 $2.16 $2.30 33% 11% 6% DIVIDENDS PER SHARE M&A Client Platform Investments CapEx and Software Capital allocation 2 1. Includes Software purchases and capitalized internal use software. 2. Net investments on new client conversions, including deve

26. Slide 26: Fiscal Year 2022 Guidance

    25© 2022 | Fiscal Year 2022 Guidance FY’22 Guidance Updates / Change Recurring revenue growth High end of 12-15% No change Adjusted Operating income margin (Non-GAAP) ~18.5% No change Adjusted earnings per share growth (Non-GAAP) 13-15% Increasing from 11-15% Closed sales $240-$280M No change

27. Slide 27: Earnings Conference Call Third Quarter Fiscal Year 2022

    26© 2022 | Scaling a Global Fintech Leader E A R N I N G S C O N F E R E N C E C A L L Third Quarter Fiscal Year 2022

28. Slide 28: Key messages

    27© 2022 | Key messages Broadridge delivered strong third quarter results, including 16% recurring revenue growth, double-digit Adjusted EPS growth, and strong sales 1 2 3 4 5 Our growth continues to be powered by long-term trends and the continued successful integration of Itiviti The value of the

29. Slide 29: Summary financial results

    28© 2022 | Summary financial results $ in millions, except per share data THIRD QUARTER SUMMARY FINANCIAL RESULTS 2022 2021 Inc./(Dec.) Recurring revenues $1,012 $873 16% Total revenues 1,534 1,390 10% Operating income 246 239 3% Adjusted Operating income (Non-GAAP) 313 284 10% Adjusted Operating in

30. Slide 30: Appendix

    Appendix oe es Broadridge:

31. Slide 31: Supplemental Reporting Detail - Product Line Reporting

    30© 2022 | 1Confidential and Proprietary | Supplemental Reporting Detail ‒ Product Line Reporting (Unaudited) In the second quarter of fiscal year 2021, the Company changed its presentation of disaggregated revenue by product line disclosures to reflect internal realignment of the Company’s revenue

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

    31© 2022 | Explanation of Non-GAAP measures and Reconciliation of GAAP to Non-GAAP measures

33. Slide 33: Non-GAAP measures explanation

    32© 2022 | 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 measures

    33© 2022 | Non-GAAP measures We exclude Acquisition and Integration Costs, IBM Private Cloud Charges, Real Estate Realignment and Covid-19 Related Expenses, Investment Gains, and the Software Charge, from our Adjusted Operating Income (as applicable), as well as other adjusted earnings measures, bec

35. Slide 35: Reconciliation of GAAP to Non-GAAP Measures

    34© 2022 | 1Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures Note: Amounts may not sum due to rounding. Year ended June 30, Dollars in millions 2021 2020 2019 2018 2017 2016 2015 2014 Operating Income (GAAP) $678.7 $624.9 $652.7 $598.1 $534.0 $502.3 $468.5 $418.3 Adjustment

36. Slide 36: Reconciliation of GAAP to Non-GAAP Measures

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

37. Slide 37: Reconciliation of GAAP to Non-GAAP Measures

    36© 2022 | 1Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures (Unaudited) 3 Months Ended Mar. 31 9 Months Ended Mar. 31 Dollars in millions 2022 2021 2022 2021 Operating income (GAAP) $246.0 $239.2 $418.2 $397.3 Adjustments: Amortization of Acquired Intangibles and Purchased

38. Slide 38: Reconciliation of GAAP to Non-GAAP Measures

    37© 2022 | 1Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (a) Real Estate Realignment Expenses impacted Adjusted earnings per share by $0.01 and $0.01 for the three months ended March 31, 2022 and 2021, respectively, and less than $0.01 and $0.28 for the nine

39. Slide 39: Reconciliation of GAAP to Non-GAAP Measures

    38© 2022 | 1Confidential and Proprietary | Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (a) Real Estate Realignment Expenses were $29.6 million for the year ended June 30, 2021. Covid-19 Related Expenses were $15.7 million and $2.4 million for the year ended June 30, 2021 and 2020, respec

40. Slide 40: Fiscal Year 2022 Adjusted Earnings Per Share Growth Rate

    39© 2022 | 1Confidential and Proprietary | Fiscal Year, 2022 Adjusted Earnings Per Share Growth Rate (a) Diluted earnings per share – GAAP (2) – 2% growth Adjusted earnings per share – Non-GAAP 13-15% growth Adjusted Operating Income Margin (b) Operating income margin % - GAAP ~13.5% Adjusted Operat

41. Slide 41: Broadridge Investor Relations Contacts

    40© 2022 | W. Edings Thibault Edings.Thibault@Broadridge.com Sean Silva Sean.Silva@Broadridge.com Broadridge Investor Relations Contacts

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