Broadridge Financial Solutions (BR) RBC Capital Markets Financial Technology Conference summary

Business overview and growth

• Operates as a global fintech with a $24B market cap, serving asset managers, capital markets, wealth managers, and public companies.

• Provides infrastructure for corporate governance, regulatory communications, and SaaS technology platforms.

• Achieved 10% average annual fee revenue growth and 14% earnings growth over the past decade.

• Total shareholder return averaged 22% over the last decade, aiming for top quartile returns long-term.

• Market opportunity exceeds $200B, with current penetration at $4B in vended services.

Key business segments and performance

• Governance (ICS) is the largest segment at $2.5B, growing 10% annually, driven by position-based fees and product innovation.

• Capital markets segment is $1B, growing at 14% annually, bolstered by acquisitions like Itiviti.

• Wealth management is just under $600M, growing 10% annually, with recent platform completion for UBS.

• M&A and share buybacks are key capital allocation strategies, with about 50% of excess cash going to M&A over the past decade.

• Dividend growth has been in double digits nearly every year except during the pandemic.

Industry trends and strategic positioning

• Major trends include democratization of investing, digitization, data/AI adoption, modernization of wealth management, and regulatory change.

• Focuses on mutualizing costs for clients, especially around regulatory changes.

• Positioned to benefit from ongoing market trends and low current market penetration.

• Innovation includes distributed ledger technology, AI applications, and pass-through voting.

• Data assets are leveraged for advanced analytics and predictive AI-driven products for clients.