Broadridge Financial Solutions, Inc. · NYSE:BR
Broadridge Financial Solutions — Investor Day (December 2020)
135 slides from Broadridge Financial Solutions's investor day presentation, Dec 10, 2020
Slide 1: Investor Day 2020
EXHIBIT 99.1 Investor Day 2020 Broadridge: | A Global Fintech Leader.” 277 KE = a AEE IAGO OE oe f 2 7.° A aie i A: On ge sie ae ii nn) Mecsocy cee. 2 Pao Zo pod 7 eae Broadridge’
Slide 2: Agenda
1|| Tim Gokey Bob Schifellite, Dorothy Flynn, Cindy Dash, and Doug DeSchutter Tom Carey and Vijay Mayadas Chris Perry and Mike Alexander Samir Pandiri Edmund Reese Scale a Global Fintech Leader for Governance and Investing Grow Capital Markets Build Wealth and Investment Management Extend our Govern
Slide 3: Forward-Looking Statements
2|| Forward-Looking Statements The Broadridge 2020 Investor Day presentations 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 Pri
Slide 4: Use of Non-GAAP Financial Measures
3|| Use of Non-GAAP Financial 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 circum
Slide 5: Scale a Global Fintech Leader for Governance and Investing
Scale a Global Fintech Leader for Governance and Investing PRESENTED BY Tim Gokey Chief Executive Officer, wa oO Broadridge Financial Solutions ne ae 2 a =a <i 7 7 | A ee ra Wn) eee ge 4 ze lo oe ie Broadridge:
Slide 6: Positioned for long-term, sustainable growth and top quartile TSR
5|| Broadridge is positioned for long-term, sustainable growth and continued top quartile TSR A global Fintech leader addressing a large and growing market Balanced capital allocation to drive shareholder return Three franchise businesses executing on clear growth strategies
Slide 7: Broadridge is a global Fintech leader
6|| Broadridge is a global Fintech leader Managing governance process for more than 80% of U.S. shares Powering $10T per day in fixed income and equity trades Distributing more than 6B critical communications each year 80% SHARES $10 TRILLION 6 BILLION Broadridge powers the critical infrastructure b
Slide 8: Strong track record of delivering growth and value
7|| We have a strong track record of delivering growth and value $1,642 $1,742 $1,897 $2,452 $2,612 $2,760 $3,036 $2.25 $2.47 $2.73 $3.13 $4.19 $4.66 $5.03 0 1 2 3 4 5 6 0 500 1000 1500 2000 2500 3000 3500 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Recurring revenue Adjusted EPS $M except for
Slide 9: $46 billion and growing market opportunity
8|| Technology and operations spend by global banks is over $190 Billion Broadridge has a $46 billion and growing market opportunity $46B CURRENT OPPORTUNITY $19B GOVERNANCE $15B CAPITAL MARKETS $12B WEALTH
Slide 10: Growth driven by evolution of financial services industry
9|| Our growth is being driven by continued evolution of the financial services industry Commodization Passive investing AI Cloud Fintech startups REGULATION Mobile Zero commission trading Blockchain Managed accounts Digital communications Next-generation mutualization and resilience Digital transfo
Slide 11: Extend our strong and growing Governance franchise
10|| We will 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 Leading position at the heart of a powerful governance network Recurring revenues of $1.9B and 3-year CAG
Slide 12: Grow our Capital Markets franchise
11|| Grow our Capital Markets franchise… Leading global provider of post-trade processing for cash securities Recurring revenues of $650M and 3-year CAGR of 8% Continued growth driven by evolution of global banks Launching AI-powered fixed income trading platform Component solutions Global simplific
Slide 13: Build a next-generation Wealth & Investment Management franchise
12|| …and continue building a next-generation Wealth & Investment Management franchise Leading provider of back office capabilities for North American wealth managers Strong set of differentiated component solutions for front- and middle-office Recurring revenues of $524M and 14% 3-year CAGR Launchi
Slide 14: Delivering next-generation technology and innovation to clients
13|| We are delivering next-generation technology and innovation to our clients Consistent investment in next-generation technology drives ongoing Innovation • APIs & Micro Services • Cloud First • Agile, Dev Ops approach • Ongoing platform modernization • Mutualization of our internal services • Dr
Slide 15: Growth grounded in a strong culture
14|| Our growth is firmly grounded in a strong culture that drives real business impact WINNER, Financial Data Services, 2015-2020 World’s Most Admired Companies FORTUNE® Magazine USA India Canada
Slide 16: Balanced, growth friendly capital allocation
15|| $2.8B free cash flow $1.5B targeted M&A investment $2.3B returned to shareholders We remain committed to balanced, growth friendly capital allocation FY2015 – FY2020 SELECT SOURCES AND USES OF CASH
Slide 17: Clear plan for sustained growth and top quartile TSR
16|| A clear plan for sustained growth and top quartile TSR Extend our strong and growing governance franchise Grow our capital markets franchise Build a next-gen wealth & investment management franchise Drive sustainable and consistent revenue and earnings growth DELIVER TOP QUARTILE TSR 2014 Inves
Slide 18: Agenda
17|| Tim Gokey Bob Schifellite, Dorothy Flynn, Cindy Dash, and Doug DeSchutter Tom Carey and Vijay Mayadas Chris Perry and Mike Alexander Samir Pandiri Edmund Reese Scale a Global Fintech Leader for Governance and Investing Grow Capital Markets Build Wealth and Investment Management Extend our Gover
Slide 19: Extend our Governance Franchise
Extend our Governance Franchise PRESENTED BY Bob Schifellite President, Investor Communication Solutions Broadridge’
Slide 20: Governance franchise recurring revenue profile
19|| $1.9B TOTAL RECURRING REVENUE 6% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. KEY BUSINESSES • Regulatory • Issuer • Data-Driven Fund Solutions • Customer Communications $19B TOTAL ADDRESSABLE MARKET Our Governance franchise has a strong and growing recurring revenue profi
Slide 21: Unique network and four key growth themes
20|| Unique network with strong underlying macro drivers and a large global market opportunity Powering greater investor engagement through next-generation regulatory communications Providing corporate issuers with a growing range of governance and regulatory needs Driving next-generation digital co
Slide 22: Network links investors, asset managers, and issuers
21|| 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 & TRADE ASSOCIATIONS 1,000+ Banks and broker-dealers Our network links investors, asset m
Slide 23: Each entity in our ecosystem presents an opportunity
22|| Institutional • Proxy voting • Class actions Mutual funds and ETFs • Interim reports • Distribution Insight ISSUERS OF SECURITIES SHAREHOLDERS Financial advisors • Technology platforms • Data-driven marketing Corporate issuers • Annual meetings services • Disclosure solutions Banks and broker-d
Slide 24: Industry tailwinds impacting our clients
23|| • Increasing retail shareholding • Investors are more engaged in governance • Greater digitization enabling better data- driven insights • Expanded client opportunities, such as improved distribution • Brokers and advisors leveraging digital as a competitive advantage • End-users expecting impr
Slide 25: Capturing growing global opportunities
24|| Capturing growing global opportunities 74K Public companies ~100 Markets 8.6T+ Shares 123K Funds 400M+ Investors Key solutions include: • Annual meeting services • Fund communications • Data and analytics • Shareholder disclosure solutions
Slide 26: Governance franchise creates unique client benefits
25|| Lower operating costs Higher shareholder engagement Solutions for new regulations Growth and retention of revenue Deep financial services knowledge and client commitment Data and network value Mutualized operating model Our Governance franchise creates unique benefits for our clients and the in
Slide 27: Drive Next-Gen Regulatory
GROWTH THEME 1 Drive Next-Gen Regulatory PRESENTED BY Bob Schifellite President, Investor Communication Solutions ves Pag Pa Z i ¢ Che ‘hi a ¢ < ¢ Ze Pye) ow f, Broadridge:
Slide 28: Next-Gen Regulatory business growth
27|| $792M TOTAL RECURRING REVENUE 8% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. $624M $673M $750M $792M FY17 FY18 FY19 FY20 KEY DRIVERS • Continued equity, mutual fund, and ETF position growth • Enhanced shareholder engagement through tech enablement • Event-driven revenue i
Slide 29: Industry Trends: position growth
28|| Industry Trends Rise in managed account assets Growth of self-directed, affordable investing Shift to model-based investing FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 U.S. EQUITY, MUTUAL FUND, AND ETF POSITIONS U.S. Equity Positions U.S. Mutual Fund & ETF Positions 8% 6% 10YR CAGR P
Slide 30: Driving future success in product and technology innovation
29|| • Shareholder Rights Directive II – Global Proxy • Enhanced e-delivery • ProxyVote.com redesign • SEC Rule 30e-3 • Corporate Actions • Class Actions Portal • Pass-Through Voting • Streamlined fund reports We are driving our future success in product and technology innovation now • Next-gen arch
Slide 31: ProxyVote App Video
ProxyVote App Video Bs Broadridge’ PROXYVOTE™ APP e Increase participation
Slide 32: Innovating across regulatory communications
31|| Innovating across all aspects of regulatory communications PROXY INTERIMS POST SALE CORPORATE ACTIONS
Slide 33: Long track record of innovation in regulatory communications
32|| Patented Inline Summary Prospectus ProspectusView Investor/Advisor Mailbox End-to-End Vote Confirmation 2011 – 2015 Notice and Access Rule Virtual Shareholder Meeting Mobile Device (Access and Voting) 2000 – 2010 e-Delivery ProxyEdge® Only Consent Management and Paper Suppression 1990s Retail i
Slide 34: Grow End-to-End Issuer Solutions
GROWTH THEME 2 Grow End-to-End Issuer Solutions PRESENTED BY Dorothy Flynn President, “ett eeeees = Corporate Issuer Solutions a P. i ie er Aa - re i ©. ee ao Pan ti : Z ion ¢ co" eh eee 4 Zh _ Broadridge’
Slide 35: Issuer solutions track record of growth
34|| $157M TOTAL RECURRING REVENUE 14% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. $104M $118M $137M $157M FY17 FY18 FY19 FY20 STRATEGY FOR GROWTH: • Expand our relationships with public companies • Grow our leadership in issuers’ required compliance activities • Drive growth
Slide 36: Public companies have complex governance challenges
35|| Provide information on company results to all constituents Enable shareholder voting on key company issues Disclose key information to regulators ISSUER GOVERNANCE REQUIREMENTS INSTITUTIONAL SHAREHOLDERS REGULATORS REGISTERED SHAREHOLDERS RETAIL BENEFICIAL SHAREHOLDERS Public companies have a n
Slide 37: Capabilities and beneficial proxy relationships
36|| • Transfer agent services • Corporate actions • Proxy distribution, voting, and tabulation • Shareholder communications • Retail engagement strategy • Virtual shareholder meetings • ESG consulting • Shareholder data & analytics • SEC/EDGAR filings • Document composition and printing • IPO, M&A,
Slide 38: Expanding recurring relationships with issuers
37|| Leading financial services firm FY15 REVENUE: $91K FY20 REVENUE: $884K Leading industrial corporation FY18 REVENUE: $21K FY20 REVENUE: $187K FY20FY19FY18FY17FY16FY15 ShareLink® Shareholder Data Services Annual Meeting Type, EDGAR, Print Transfer Agency VSM DocuBuilder ShareLink® Annual Meeting
Slide 39: Virtual Shareholder Meeting Video
38|| Virtual Shareholder Meeting Video
Slide 40: Proven platform powering virtual shareholder meetings
39|| COMPETITIVE ADVANTAGES • Proven track record • Streamlined access • Integrated voting • Single source provider 2020 VIRTUAL SHAREHOLDER MEETING KEY STATISTICS1 VSM OF THE FUTURE • Next-gen user interface • Enhanced tools for seamless meeting management • Increased transparency for issuers and s
Slide 41: Build Data-Driven Fund Solutions
GROWTH THEME 3 Build Data-Driven Fund Solutions PRESENTED BY Cindy Dash General Manager, (tte ee tees on . - at Investor Communication Solutions i ee Aa —) y Bp ey Pee ae 2 eRe 22 a ne Zi ee a> oe Broadridge:
Slide 42: Data-Driven Fund Solutions portfolio
41|| $339M TOTAL RECURRING REVENUE 12% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. $244M $269M $304M $339M FY17 FY18 FY19 FY20 GROWTH DRIVERS • Launch new distribution solutions • Expand capabilities for retirement • Market forces driving our growth potential • Continue sales
Slide 43: Challenges for asset management industry participants
42|| Increased Competition • Distributor proprietary offerings • New digital-only services New Regulations • Complex and diverging regulations across multiple geographies Focus on Fees and Margin • Shift to passive investment • Industry consolidation Significant changes are creating challenges for a
Slide 44: Data-driven insights to help clients grow
43|| We leverage data-driven insights to help our clients grow their business, maintain compliance, and drive engagement Global Distribution Retirement Technology and Analytics Trusted advisor for the front-office of distribution Robust network connecting asset managers, advisors, and investors Driv
Slide 45: Data and Analytics: Global Distribution
44|| Data and Analytics Enhanced global data-sets Curated Research and Insights For better decision-making Integrated Platform Distribution Insight Optimizing product and distribution strategy Empowering the front-office of asset managers while mutualizing middle-office distribution costs 1 | GLOBAL
Slide 46: Distribution Insight Video
45|| Distribution Insight Video
Slide 47: Leading retirement technology solutions
46|| Delivering leading retirement technology solutions Helping clients gather and grow assets with fiduciary-driven tools 2 | RETIREMENT TECHNOLOGY AND ANALYTICS Open Architecture Retirement Services Offering flexibility and choice Trust and Custody Enhancing the institutional retirement market exp
Slide 48: Driving customer education and engagement
47|| Driving customer education and engagement Leveraging data to optimize the fund investor and participant experience while driving better financial outcomes 65M Retirement participants 23 of Top 25 Recordkeepers are clients 3 | CUSTOMER JOURNEY MANAGEMENT Personalized Experience Tailored, data-dr
Slide 49: Differentiated value proposition
48|| Scale Minimizing the cost of asset management with our integrated platforms Network Effect Connecting asset managers to financial intermediaries and investors Product Innovation Data, insights, and technology helping clients drive growth and remain competitive Broadridge delivers real business
Slide 50: Transform Omni-Channel Communications
GROWTH THEME 4 Transform Omni-Channel Communications PRESENTED BY Doug DeSchutter President, Customer Communications Broadridge:
Slide 51: Omni-channel approach to drive growth
50|| Leverage scale, digital innovation to drive unique omni-channel approach $573M TOTAL RECURRING REVENUE HIGHLIGHTS • ~$70M digital business with double-digit recurring revenue growth • $50M in synergies driving double-digit earnings growth • Record sales in FY20 KEY DRIVERS • Digitization of fin
Slide 52: Print to digital conversion economics
51|| Print to digital conversion economics benefit both clients and Broadridge (illustrative) CLIENTS
Slide 53: Executing on three goals from 2017 Investor Day
52|| Larger long-term opportunity • Launched Broadridge Communications Cloud • Recent milestone wins ̶ Leading U.S. bank ̶ Global Fintech ̶ Leading U.S. Insurer Compelling near-term financial benefits • Achieved synergies more than twice our initial goal • Double-digit earnings growth every year sin
Slide 54: Opportunity in further digitizing financial services
53|| THERE IS OPPORTUNITY IN FURTHER DIGITIZING FINANCIAL SERVICES Financial institutions continue to meet the needs of digitizing their customer base in the broad sense with more efficient and cost-effective services, such as robo-advisors, trading apps, online banking, and mobile services Yet, the
Slide 55: Investing in omni-channel communications
54|| Leverage Broadridge’s investments to move dated, legacy digital communications infrastructure to a unified, cloud-based, omni-channel platform Consolidate print and digital omni-channel communications onto a high scale, high- performance, and low-cost network to mutualize non- differentiating f
Slide 56: Broadridge Communications Cloud
55|| AUTOMATED WORKFLOW AND ORCHESTRATION FLEXIBLE MODULES AND OPEN APIs Existing Broadridge & Client Platforms API Batch DATA Composition Analytics & Reporting Identity & Preference Mgmt. Omni-Channel Customer Experience Information Management Omni-Channel Delivery CUSTOMER ACTION Email, SMS, App N
Slide 57: Communications Cloud Video
56|| Communications Cloud Video
Slide 58: Friction in e-delivery
57|| FRICTION More steps to access e-delivery Your monthly account statement is now available online at www.xyzacst.com. The safest way to view your statement is to follow these steps: 1. Go to www.xyzacst.com and log on to your account. 2. Under the My Account Tab , select Monthly Statements. *** P
Slide 59: Data-driven, personalized push communications
58|| Email account performance summaries Use data to visualize performance Enable advisors to tailor messages to each person We are making digital better than paper: Data-driven, personalized push communications
Slide 60: Reduce friction by pushing valuable content
59|| Send a text with a link to a personalized, interactive statement for anywhere viewing American Century Capital Value Fund – Shareholder Action Required We are making digital better than paper: Reduce friction by pushing valuable content
Slide 61: Deploy print-to-digital accelerators
60|| ONE STEP ACCELERATE DIGITAL ADOPTION by creating a synchronized, seamless experience USE QR CODES TO ENGAGE CUSTOMERS IN AN INTERACTIVE AND EFFORTLESS EXPERIENCE USE INNOVATIVE TECHNIQUES on your transactional, marketing, and regulatory print communications to drive digital engagement Making di
Slide 62: Two case studies of digital acceleration
61|| Two case studies of how we are driving digital acceleration CLIENT A leading U.S. Insurer • One holistic, omni-channel platform ‒ Managed service ‒ Self-service capabilities ‒ Template rationalization • Subscription-based pricing • Cloud-based technology with open API An enterprise-wide digital
Slide 63: Industry's point of consolidation
62|| Industry’s point of consolidation Broadridge has built the premier technology center for omni-channel customer communications Our omni-channel value proposition delivers strong sales performance as we partner with providers looking to accelerate digital outcomes and rationalize in-house print c
Slide 64: Tracking key milestones for omni-channel platform
63|| • Meaningful outsourcing wins; extended sales momentum • Transition of legacy print relationships to digital • Continual enhancement of Broadridge Communications Cloud with unique differentiation • Extended reach with partnerships • Further acceleration of digital revenue growth Industry’s prin
Slide 65: Extend our Governance Franchise - Summary
Extend our Governance Franchise - Summary PRESENTED BY Bob Schifellite President, Peepoecocobcc SE —_ ; e a Investor Communication Solutions ee Poe Fi ——_ a mee . San eae . Ae Lo ea ae a al aoa 7. ce Broadridge
Slide 66: Governance franchise supported by four key themes
65|| Unique network with strong underlying macro drivers and a large global market opportunity Powering greater investor engagement through next-generation regulatory communications Providing corporate issuers with a growing range of governance and regulatory needs Driving next-generation digital co
Slide 67: Grow Capital Markets
Grow Capital Markets PRESENTED BY Tom Carey President, Global Technology and Operations a 40" a Figo Z Pa Z i vA Che ‘hi a ¢ VA z A Je Stews 228 24 ow oe Se oye Broadridge’
Slide 68: Positioned to solve for market trends as SaaS provider
67|| Uniquely positioned to solve for market trends and industry challenges as a market-leading SaaS provider Global simplification solves for client needs in a consistent, optimized way including expanded asset classes Component solutions meet the needs of global firms with integration and geograph
Slide 69: Capital Markets franchise growth and sales momentum
68|| $517M $569M $591M $650M FY17 FY18 FY19 FY20 $650M TOTAL RECURRING REVENUE KEY DRIVERS • Delivery of next-gen post-trade platform • Launch of new SaaS solutions • Strong sales momentum • Onboarding of major clients 8% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. $15B TOTAL
Slide 70: Significant transition in Capital Markets
69|| Significant transition in Capital Markets creates business challenges for our clients Firms seek to modernize their technology stack, componentize their architecture, and reduce their technical debt Need for greater resiliency, scale, and capacity Continued focus on operational efficiency to dr
Slide 71: Comprehensive post-trade solutions
70|| Comprehensive solutions that span the post-trade lifecycle end-to-end 19 of 24 U.S. primary dealers use Broadridge’s institutional fixed income trading platform 11 of top 15 process equities for top global investment banks 75+ self-clearing U.S. broker- dealers use Broadridge’s platform 100+ co
Slide 72: Three growth opportunities
71|| We execute our strategy across three growth opportunities Drive global simplification in post-trade Combine data and technology to create network value Deliver new components, solutions, and services
Slide 73: Driving simplification in post-trade
72|| Driving simplification in post-trade • Reduces cost and risk • Improves business performance • Increases resilience • Modernizes technology • Creates base for future growth DELIVERING TECHNOLOGY AND OPERATIONAL TRANSFORMATION TO DRIVE BUSINESS RESULTS NEXT-GEN GLOBAL POST-TRADE Multi-channel Us
Slide 74: New components, solutions, and services
73|| Delivering value with new components, solutions, and services EXPANDING OUR MARKET COVERAGE • Asset class expansion into exchange traded derivatives and cryptocurrency • 20 new markets since 2018 CREATING NEW SOLUTIONS • Global Corporate Action SaaS solution with four major clients • Securities
Slide 75: Combining data and new technologies to create network value
74|| Addressing client needs by combining data and new technologies to create network value DELIVERING NETWORK VALUE Broadridge depth in industry knowledge, large data sets, and new technologies power analytics to improve client business results • Accelerate industry operational transformation • Cre
Slide 76: LTX Video
LTX Video es Broadridge” LTX Trade smarter a @ pa Broadridge
Slide 77: LTX fixed income trading platform
76|| LTX is our fixed income trading platform combining AI and next-generation protocols Expected to launch Q3 FY21 with 10 dealers and over 35 buy-side customers Aiming to digitize trading for the nearly $10 trillion U.S. corporate bond market Utilizes powerful AI to identify natural buyers and sel
Slide 78: Distributed Ledger Repo solution
77|| Our Distributed Ledger Repo solution increases efficiency and reduces costs and risk in bi-lateral repo transactions Generates cost savings in the $2 trillion bi-lateral repo market Creates operational efficiencies by reducing custodian, tri-party and Fed costs due to immobilization of collater
Slide 79: Solving mission-critical functions across capital markets
78|| We solve for mission-critical, non-differentiating functions across capital markets globally with innovative technology solutions Uniquely positioned to solve for market trends and industry challenges as a market-leading SaaS provider Global simplification solves for client needs in a consisten
Slide 80: Wealth Platform Video
Wealth Platform Video bal Broadridge’ WEALTH PLATFORM Unleash innovatiGn Pee fo pa Broadridge
Slide 81: Build Wealth and Investment Management
Build Wealth and Investment Management PRESENTED BY Chris Perry President, Broadridge Financial Solutions Pa ees Ae 7. ne eee Pd a y “a aie Broadridge’
Slide 82: Next-Generation Industry Wealth Platform
81|| We will soon launch our Next-Generation Industry Wealth Platform Longer term, there is opportunity to grow our Integrated Investment Management Suite Today, we deliver Differentiated Component Solutions to solve key Wealth Management needs Our strategy is resonating in the marketplace, and we a
Slide 83: Evolving industry trends driving demand for wealth solutions
82|| NORTH AMERICAN WEALTH AUM GROWTH OVER 2012-20Rapidly evolving industry trends and market needs are driving demand for our wealth solutions and services Generational shifts are driving demand for personalization, holistic advice, and new investment options Acceleration of digitization Fee compre
Slide 84: Uniquely positioned to serve wealth management clients
83|| Narrow Technology & Investment Content Fintechs Pure Technology BroadCAPABILITIES SO LU TI O N S MARKET LANDSCAPE “Broadridge is the only Fintech leader with the proven technology, scale and experience to deliver such a transformational solution.” ‒ Tom Naratil President, UBS Americas We are un
Slide 85: Wealth & Investment Management growth
84|| Wealth & Investment Management generated significant growth $524M TOTAL RECURRING REVENUE KEY DRIVERS • Closing key sales • Extending our front to back solutions • Executing on integrated tech platform build 14% 3-YEAR CAGR All financial metrics are FY20 unless otherwise noted. $352M $389M $406
Slide 86: Established market presence and foundation
85|| 100% of the largest North American banks are served by Broadridge 30%+ of U.S. financial advisors utilize Broadridge front office solutions ~$11T+ assets on Broadridge platforms 75M+ accounts serviced on Broadridge’s trade processing platforms Broadridge has an established market presence and s
Slide 87: Clear strategy for continued growth
86|| We have a clear strategy for continued growth Deliver differentiated component solutions Grow integrated investment management suite Launch the next-generation industry wealth platform
Slide 88: Differentiated component solutions
87|| Acquire, engage, and manage clients FRONT OFFICE Manage the advisory business MIDDLE OFFICE Run the firm BACK OFFICE • Increasing engagement using AI technology • Enriching data aggregation solutions • Launching new digital capabilities • Expanding our product and client portfolio • Making our
Slide 89: Industry wealth platform ecosystem
88|| The optimum combination of Broadridge technology plus integrated firm proprietary and best-in-class third party tools Our wealth platform is a comprehensive ecosystem enabling firms to grow their business Optimize advisor productivity Desktop, tablet, and mobile workstation Enhance the investor
Slide 90: Investment management solutions
89|| Well positioned for success • Growing market • Cost effective solutions • Access to higher value clients • Serves 17 of the largest 20 global investment managers and 500+ firms globally Key trends driving market growth • Consolidation in the investment management industry • Outsourcing of non-c
Slide 91: Leading Fintech provider in a large, growing industry
90|| We are a leading Fintech provider, well positioned in a large, growing, and evolving industry We will soon launch our Next-Generation Industry Wealth Platform Longer term, there is opportunity to grow our Integrated Investment Management Suite Today, we deliver Differentiated Component Solution
Slide 92: Expand International
Expand International PRESENTED BY Samir Pandiri President, “rete eetees Broadridge International eo sa ee — ee Loe es Age oe ee Pane ¢ é y Che ‘hi o Pe cra Cd AG aoa Broadridge:
Slide 93: International extends key franchises globally
92|| With significant growth potential, International extends our key franchises globally Broadridge has a sizeable, rapidly growing presence in EMEA and APAC We continue to expand our Fund Communication Solutions Our next-generation Governance solutions are driving growth We are globalizing Capital
Slide 94: Extending North American franchises globally
93|| We continue to extend our North American franchises globally CAPITAL MARKETS and GOVERNANCE RUSSIA IRELAND UK POLAND CZECHGERMANY NETHERLANDS JAPAN HONG KONG SINGAPORE INDIA AUSTRALIA 1,100+ associates in EMEA & APAC 3,600+ global support associates in India 800+ clients 18% FY17-20 revenue CAG
Slide 95: Market dynamics creating international opportunities
94|| Market dynamics are creating opportunities to expand Broadridge internationally Shift to global solutions over regional or asset-based choices Increased transparency and shareholder engagement New regulatory changes in EMEA & APAC continue to challenge our clients EU integration plus growing ne
Slide 96: Three attractive growth opportunities
95|| We are pursuing three attractive growth opportunities Globalize capabilities and client relationships Offer solutions that solve industry challenges Enable technology modernization and mutualization CAPITAL MARKETS NEXT-GENERATION GOVERNANCE FUND COMMUNICATIONS
Slide 97: Globalize Capital Markets post-trade capabilities
96|| Reconciliation, clearing reports, and distribution insights Trade and transaction reporting U.S. fixed income post-trade Revenue & expense management, BPO 1st market 11 total markets 29 total markets International equities post-trade (4 total markets) International & U.S. fixed income post-trad
Slide 98: Accelerate growth driven by Shareholder Rights Directive II
97|| Accelerate growth driven by Shareholder Rights Directive II Increase market presence in Japan through joint venture with Tokyo Stock Exchange; Signed 1,000th client in 2019 Continue to extend our leadership position across International markets Drive growth through next- generation Governance s
Slide 99: Shareholder Rights Directive II Video
98|| Shareholder Rights Directive II Video
Slide 100: Case Study: Shareholder Rights Directive II
99|| CASE STUDY Shareholder Rights Directive II 110+ IMPLEMENTATIONS COMPLETED THE RULE Financial intermediaries to comply with stricter requirements on proxy voting and shareholder disclosure THE OPPORTUNITY Broadridge is uniquely positioned to solve the industry needs THE ANSWER Delivered end-to-e
Slide 101: Fund Communications: pan-European platform
100|| POWERING OUR CLIENT SOLUTIONS Wealth Managers & Multi-Managers Investment Platforms Insurance Companies Aggregators & Data Vendors Static Data Documents Portfolio Data Financials Additional Data ASSET MANAGERS INVESTMENT INDUSTRY Expand Fund Communication Solutions capabilities and market posi
Slide 102: International extends key franchises globally
101|| With significant growth potential, International extends our key franchises globally Broadridge has a sizeable, rapidly growing presence in EMEA and APAC We continue to expand our Fund Communication Solutions Our next-generation Governance solutions are driving growth We are globalizing Capita
Slide 103: Drive Shareholder Returns Through the Broadridge Financial Model
Drive Shareholder Returns Through the Broadridge Financial Model PRESENTED BY Edmund Reese Chief Financial Officer, Dente ee nees a . ; : . 3 at Broadridge Financial Solutions = ae PA ee y Bp ey Pee ae 2 eRe 22 Se Zi ee Ae ee Broadridge:
Slide 104: Broadridge financial model
103|| 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 in o
Slide 105: Steady earnings resulting in top quartile TSR
104|| This simple financial model has produced steady and consistent earnings over time resulting in top quartile TSR growth FY14 - FY17 (CAGR) FY17 - FY20 (CAGR) Organic Recurring revenue growth1 5% 5% Recurring revenue growth 7%2 7% Adj. Operating Income Margin (bps/ year) 532 80 Adj. Earnings per
Slide 106: Long runway for growth and high-quality revenue mix
105|| GROWING RECURRING REVENUE $46B ADDRESSABLE MARKET $46B $1B $2B $3B $4B Total Addressable Market Amounts may not sum due to rounding We have a long runway for growth and a high-quality revenue mix… 42% FY17 FY20 REVENUE MIX 65% RECURRING REVENUE $4.5B TOTAL REVENUE $4.1B -3% 7% 58% 65% $3.0B 35
Slide 107: Consistent recurring revenue growth
106|| …that has been consistently growing at sustainable levels RECURRING REVENUE GROWTH AT LEAST 6% FOR OVER 6 CONSECUTIVE YEARS 6% 9% 7% 6% 6% 10% FY15 FY16 FY17 FY18 FY19 FY20 1. Recurring revenue growth excluding $424M from the acquisition of NACC. As reported in FY17, recurring revenue rose 29%
Slide 108: Recurring revenue broad based across segments
107|| Regulatory 8% Data-Driven Fund Solutions 12% Issuer Customer Communications 14% -2% $1.9B RECURRING REVENUE $1.2B RECURRING REVENUE Capital Markets Wealth & Investment Management 8% 14% GROWING RECURRING REVENUE Recurring revenue is broad based and growing across business segments and product
Slide 109: Recurring revenue benefits from position growth
108|| GROWING RECURRING REVENUE Recurring revenue benefits from the tailwind in position growth… TOTAL U.S. EQUITY AND U.S. MUTUAL FUND & ETF POSITIONS FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 U.S. Equity Positions U.S. Mutual Fund & ETF Positions 8% 10YR CAGR 6% 10YR CAGR
Slide 110: Closed sales momentum and recurring revenue backlog
109|| $127 $146 $151 $188 $215 $233 $239 FY15FY14 FY16 FY17 FY18 FY19 FY20 +11% CAGR GROWING RECURRING REVENUE …and is driven by momentum in our closed sales performance 1. Closed Sales and Backlog are Broadridge estimates and subject to revision 2. Recurring Revenue Backlog represents an estimate o
Slide 111: Strong client retention
110|| …and anchored in strong retention across our client base RECURRING REVENUE RETENTION RATE GROWING RECURRING REVENUE 97% 98% 98% 97% 97% 98% FY15 FY16 FY17 FY18 FY19 FY20
Slide 112: Event-driven revenue supported by position growth
111|| Which $203 $200 $180 $256 $135 $132 $156 $156 $173 $199 $219 $284 $244 $178 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ($M) GROWING RECURRING REVENUE Position growth also supports our high quality but more cyclical event-driven revenue FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY07 - FY13 $180M AVERAGE F
Slide 113: Committed to ongoing investment for future growth
112|| • Building new products like LTX • Enhancing key growth products (e.g. VSM offering), and to meet new regulations (e.g. SRD II solution) • Adding digital capabilities PRODUCT PLATFORM PEOPLE CONSISTENT INVESTMENT We are committed to ongoing investment that supports future growth… • Platform de
Slide 114: Steady margin expansion
113|| 80 bps annual FY17-20 average Adjusted Operating Income margin expansion Efficiency Contributions from business reengineering and internal growth Digital Margin expansion due to mix shift toward digital M&A Primarily weighted to early-stage businesses Investment Strategic investment aligned wi
Slide 115: Capital-light business generates strong free cash flow
114|| Our capital-light business generates strong free cash flow… 1. Calculated as Free Cash Flow / Adjusted Net Earnings 2. FY20 drops below 100% Cash Flow Yield due to significant increases in net Client platform spend, defined as net cash spent on new client conversions, including development of
Slide 116: Targeted acquisitions to support growth
115|| 4% 50%42% 3% $802M M&A SPEND1 19% PORTFOLIO IRR3 10% AVERAGE REVENUE GROWTH2 Capital Markets WealthData-Driven Fund Solutions Issuer TARGETED M&A FY18-FY20 STRONG FREE CASH FLOW …which allows us to make targeted acquisitions to support growth Note: Amounts may not sum due to rounding 1. For ac
Slide 117: Strong and growing dividend
116|| …and fuels a strong and growing dividend 1. Calculated as annual dividend over Adjusted Net earnings. Dividend declaration subject to Board of Directors approval STRONG FREE CASH FLOW GROWTH IN ANNUAL DIVIDEND $1.08 $1.20 $1.32 $1.46 $1.94 $2.16 FY15 FY16 FY27 FY18 FY19 FY20 29% 11% 11% 33% 11
Slide 118: Attractive capital returns to shareholders
117|| …and attractive capital returns to shareholders 1. Capital return to shareholders through Annual Dividend and total share repurchase net of option proceeds STRONG FREE CASH FLOW DIVIDENDS AND SHARE REPURCHASES1 $1.08 $1.20 $1.32 $1.46 $1.94 $2.16 $1.93 $0.78 $2.33 $1.87 $3.09 $0.24 $3.33 $3.01
Slide 119: Capital available for share repurchases and M&A
118|| $2.1B $1.9B $0.7B Additional Debt Capacity2 Projected Free Cash Flow FY21-FY231 Dividend @ 45%3 FY21-FY23 Capital Available for Share Repurchases and M&A STRONG FREE CASH FLOW The capital strength of our business allows us to invest for growth, commit to a solid dividend and return capital to
Slide 120: FY21 Guidance Reaffirmed
119|| Guidance – Reaffirmed FY211 Recurring revenue growth 3-6% Total revenue growth 1-4% Adj. Operating Income Margin expansion (bps) ~100 Closed Sales $190–235M Adj. Earnings per Share Growth 6-10% 1. Fiscal year 2021 Guidance as of October 30, 2020 We are reaffirming our full-year guidance for FY
Slide 121: New three-year growth objectives FY20-FY23
120|| NEW 3yr Growth Objectives (CAGR) FY20 – FY23 Organic Recurring revenue growth 5-7% Recurring revenue growth 7-9% Adj. Operating Income Margin expansion (bps/year) 50+ Adj. Earnings per Share Growth 8-12% …and are setting new three-year growth objectives for FY20 – FY23. This financial model, w
Slide 122: Conclusion
Conclusion PRESENTED BY Tim Gokey Chief Executive Officer, Broadridge Financial Solutions Broadridge’
Slide 123: Clear plan for sustained growth and top quartile TSR
122|| A clear plan for sustained growth and top quartile TSR Extend our strong and growing governance franchise Grow our capital markets franchise Build a next-gen wealth & investment management franchise Drive sustainable and consistent revenue and earnings growth DELIVER TOP QUARTILE TSR 2014 Inve
Slide 124: Appendix
Appendix ve pa Broadridge’
Slide 125: Key Performance Indicators
124|| Key Performance Indicators
Slide 126: Key Performance Indicators
125|| Key Performance Indicators Management focuses on a variety of key indicators to plan, measure and evaluate the Company’s business and financial performance. These performance indicators include Revenue and Recurring fee revenue, as well as Non-GAAP measures of Adjusted Operating income, Adjust
Slide 127: Explanation of Non-GAAP Measures and Reconciliation
126|| Explanation of Non-GAAP Measures and Reconciliation of GAAP to Non-GAAP Measures
Slide 128: Non-GAAP Measures
127|| Non-GAAP Measures Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Net Earnings and Adjusted Earnings Per Share These Non-GAAP measures reflect Operating income, Operating income margin, Net earnings, and Diluted earnings per share, each as adjusted to exclude the impact o
Slide 129: Reconciliation of GAAP to Non-GAAP Measures: Operating Income
128|| Reconciliation of GAAP to Non-GAAP Measures FISCAL YEAR Dollars in millions 2020 2019 2018 2017 Operating income (GAAP) $624.9 $652.7 $598.1 $534.0 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 122.9 87.4 81.4 72.6 Acquisition and Integration Costs 12.5
Slide 130: Reconciliation of GAAP to Non-GAAP Measures: Net Earnings
129|| Reconciliation of GAAP to Non-GAAP Measures FISCAL YEAR Dollars in millions 2020 2019 2018 2017 Net Earnings (GAAP) $462.5 $482.1 $427.9 $326.8 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 122.9 87.4 81.4 72.6 Acquisition and Integration Costs 12.5 6.4
Slide 131: Reconciliation of GAAP to Non-GAAP Measures: EPS
130|| Reconciliation of GAAP to Non-GAAP Measures FISCAL YEAR Dollars in millions, except per share amounts 2020 2019 2018 2017 Diluted earning per share (GAAP) $3.95 $4.06 $3.56 $2.70 Adjustments: Amortization of Acquired Intangibles and Purchased Intellectual Property 1.05 0.74 0.68 0.60 Acquisiti
Slide 132: Reconciliation of GAAP to Non-GAAP Measures: Free Cash Flow
131|| Reconciliation of GAAP to Non-GAAP Measures FISCAL YEAR Dollars in millions 2020 2019 2018 2017 2016 2015 2014 Net cash flows provided by operating activities (GAAP) $598.2 $617.0 $693.6 $515.9 $437.7 $431.4 $387.7 Capital expenditures and Software purchases and capitalized internal use softwa
Slide 133: FY2021 Adjusted EPS Growth and Operating Income Margin Guidance
132|| FISCAL YEAR 2021 Adjusted Earnings Per Share Growth and Adjusted Operating Income Margin FY21 Adjusted Earnings Per Share Growth Rate (a) Diluted earnings per share - GAAP 5 - 12% growth Adjusted earnings per share - Non-GAAP 6 - 10% growth FY21 Adjusted Operating Income Margin (b) Operating i
Slide 134: Broadridge Investor Relations Contacts
133|| Elsa Ballard Tel: 212-973-6197 Email: Elsa.Ballard@Broadridge.com W. Edings Thibault Tel: 516-472-5129 Email: Edings.Thibault@Broadridge.com Broadridge Investor Relations Contacts
Slide 135: No part of this document may be distributed, reproduced or posted without the express
No part of this document may be distributed, reproduced or posted without the express written permission of Broadridge Financial Solutions, Inc. ©2020 Broadridge Financial Solutions, Inc. All rights reserved.
Broadridge Financial Solutions — Investor Day (December 2020) on 6ix