Broadridge Financial Solutions Conference Summary Company Overview - Broadridge Financial Solutions is a leading provider of technology infrastructure in the financial services industry with a market cap of approximately $28 billion and annual fee revenue of $4.5 billion [3][4] - The company serves clients primarily in wealth management, asset management, capital markets, and corporate issuers, including 28 of the 29 globally systemic important banks [4] Core Business Segments - The Investor Communication Solutions (ICS) unit connects corporate issuers to investors through banks and advisors, facilitating a unique network [5] - The Global Technology Operations (GTO) business includes capital markets and wealth management services, providing front, middle, and back office systems [6][7] Growth Plans - Broadridge's growth strategy focuses on three areas: governance franchise, capital markets, and wealth management modernization [8][9] - The governance franchise aims to democratize and digitize governance, with mid-teens position growth in equities and mid-single digits in funds for FY25 [11][12] - Capital markets are being simplified and innovated, with a focus on AI and new technologies like Bond GPT [13][14] - Wealth management is being modernized through modular solutions, allowing firms to upgrade their back office capabilities [15] Financial Performance - Over the last decade, Broadridge has achieved 10% recurring revenue growth and 13% adjusted EPS growth, with dividends growing in line with earnings [16][17] - The company targets 5-8% organic revenue growth and 8-12% EPS growth over the next three years [17] Market Trends - The democratization of investing is driving position growth, with more investors entering the market and increasing the number of positions per investor [22][23] - Position growth has been in the high single digits over the last decade, with expectations for continued positive trends [25][26] Digital Transformation - Broadridge is actively investing in digital communications, with 85-90% of regulatory communications already suppressed digitally [32] - The customer communications business, valued at $700 million, is transitioning from 85% print to a growing digital segment [38][40] Revenue Streams - Recurring revenue is defined as revenue under contract for multiple years, while event-driven revenue is one-time or sporadic [46][47] - Distribution revenue, primarily from physical output, is expected to grow in the medium term but will likely dissipate in the long term as digital strategies are executed [50][51] Demand and Market Conditions - Demand for solutions related to cost efficiency remains strong, with clients seeking to reduce operational costs [55] - Market volatility has historically not negatively impacted position growth, with strong defensibility observed since 2007 [59][61] Competitive Landscape - Broadridge holds a significant share in the proxy business, with competitors like Proxy Trust and Mediant [66] - The company is exploring growth opportunities in the global proxy business as international investors increasingly buy US securities [66] Regulatory Environment - Current regulations, including potential digital asset disclosures and proxy reforms, are seen as opportunities for Broadridge [68][69] - The company has developed a disclosure solution for digital assets called Clarify [68] Capital Allocation Strategy - Broadridge prioritizes internal growth investments, dividends, tuck-in M&A opportunities, and share buybacks while maintaining an investment-grade credit rating [75][76]

Broadridge Financial Solutions (BR) FY Conference Summary Company Overview - Broadridge Financial Solutions is a $28 billion fintech company focused on capital markets, asset management, and wealth management, providing industry-level solutions for essential services [3][4] - The market for Broadridge's services is approximately $60 billion, with fee revenue around $4.5 billion, indicating significant growth potential [4] Financial Performance - Over the past decade, Broadridge has achieved a recurring revenue growth rate of 10% per year and earnings growth of 13% per year [4] - The company has consistently increased its dividend, achieving double-digit growth for 12 consecutive years [4] - For the current three-year period ending June 2026, Broadridge aims for 7% to 9% recurring revenue growth and 8% to 12% adjusted earnings growth, with expectations to meet these goals [5][6] Business Operations - Broadridge clears and settles $10 trillion daily and manages 800 million governance positions, sending 7 billion communications last year [7] - The company is positioned as a utility for corporate governance, connecting brokerage firms, asset managers, and individual investors [6] Growth Strategy - The growth strategy focuses on democratizing and digitizing governance, simplifying capital markets, and modernizing wealth management [8] - Key growth vectors include increasing equity positions, transitioning from print to digital communications, and enhancing client communication in wealth management [9][10] Recent Developments - Broadridge has expanded its market presence in Canada through an acquisition, enhancing its wealth management capabilities [11][40] - The company has observed significant growth in non-revenue generating equity positions, particularly in fractional shares and managed accounts, which could provide a tailwind for future growth [12][16][18] Sales and Revenue Guidance - Broadridge has lowered its guidance for closed sales due to macroeconomic uncertainties, but maintains a robust sales pipeline [21][28] - Delays in sales are attributed to procurement and legal processes rather than cancellations, with expectations that these sales will eventually onboard and contribute to revenue [28][29] Margin and Earnings Outlook - Broadridge anticipates earnings growth of 8% to 12%, with a historical average margin increase of 50 basis points per year [31][32] - The company is focused on balancing near-term earnings growth with long-term investments in innovation [33] Industry Trends and Future Growth - Capital markets are expected to grow the fastest, with governance and wealth management also showing potential for growth [35][38] - The wealth management business is projected to grow to high single-digit to low double-digit rates in the coming years, despite current noise from industry mergers [38][39] AI Integration - Broadridge is actively infusing AI into its platforms to enhance service offerings and reduce internal costs [49][54] - The company has developed unique data products that leverage AI for predictive analytics, which are already being adopted by asset managers [51][52] Regulatory Environment - The current administration's policies, particularly regarding crypto and investor engagement, present both opportunities and challenges for Broadridge [56][58] - The company is positioned to provide solutions for regulatory compliance and digital communication enhancements in response to evolving regulations [63] Conclusion - Broadridge Financial Solutions is well-positioned for growth in the fintech space, with a strong focus on innovation, AI integration, and adapting to regulatory changes, while maintaining a robust financial performance and strategic growth initiatives [4][5][11][35]