Broadridge Financial Solutions Inc at UBS Global Technology and AI Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alex Kramm - UBS - Analyst : It certainly seems -- so that's very comprehensive. So let's see if you left anything for me to dig into.But actually, starting with, like you said, the biggest business, the regulatory communications business, you mentioned position growth in the mid- to high single digits over the medium term. So maybe you can just unpack that a little bit, what gives you confidence in that? And talk about the long-term trends that are supporting that?

Question: Alex Kramm - UBS - Analyst : Very good. Maybe taking the same question a little bit more into the near term, and we actually wrote about this in your initiation, but investors have obviously been on the sidelines here in this higher interest rate environment. But I think since the election, we've seen investors seem to be a little bit more active again, moving off the sideline. So is that something you think could benefit position growth maybe in the near term? So maybe not as much as we saw in COVID, but we saw that trend back then. So it feels a little bit similar, but yes, I don't know what you're seeing so far, maybe help us.

Question: Alex Kramm - UBS - Analyst : And then maybe staying on the near term here, and I think it's something you haven't talked about earlier, but the one revenue source that you have is event-driven revenues, which can be a little bit more sporadic. So you noted that the second quarter should be a fairly large quarter. So maybe you can just remind us what is driving that and if there's any change in your expectations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 3:55PM, BR.N - Broadridge Financial Solutions Inc at UBS Global Technology and AI Conference

Question: Alex Kramm - UBS - Analyst : Fantastic. Thanks for that helpful update here. And then maybe the last one on the ICS, the regulatory side. Just more, I guess, bigger picture, like any new initiatives that you are particularly excited about as you think about that business going forward? Anything new that you're -- that couldn't support the growth over the next few years that we should be focused on?

Question: Alex Kramm - UBS - Analyst : So why don't we move to the GTO side then for a second. Starting with capital markets. Bigger picture question. But again, similar to what I just asked you on the other side here. What are you most excited about in that business maybe from a both near, medium and longer-term perspective? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 3:55PM, BR.N - Broadridge Financial Solutions Inc at UBS Global Technology and AI Conference

Question: Alex Kramm - UBS - Analyst : Good. Taking that question a little bit more near term again. You mentioned actually yourself earlier that trading volumes can be a swing factor in that business. So I don't know if you're aware, but I also cover the exchanges. So we track volumes pretty closely every day. And it seems like the quarter is actually off to a pretty good start. Are you seeing the same thing? Anything that could drive incremental upside to what you've talked about maybe in the last quarter? Or is it just not big enough to move the needle?

Question: Alex Kramm - UBS - Analyst : No. Very, very, very good. Shifting gears to wealth. Wealth, definitely an industry that we like the structural backdrop given where I work, that makes sense. So can you maybe talk about how you can capitalize on that attractive end markets? And anything that you're particularly excited about in the medium term here to support those growth rates? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 3:55PM, BR.N - Broadridge Financial Solutions Inc at UBS Global Technology and AI Conference

Question: Alex Kramm - UBS - Analyst : Good. Maybe just speaking of wealth, you just a couple of months ago, closed the acquisition of the SIS business. So can you talk about that business and how that actually fits into your broader wealth strategy?

Question: Alex Kramm - UBS - Analyst : Good. And then maybe just a bigger picture question across the whole business. You actually said in your earlier remarks that it all starts with sales. So you had record sales in fiscal 2024, I think 1Q '25 as well. So maybe just a quick update what you're seeing in terms of demand, again, both in the near and medium term?

Question: Alex Kramm - UBS - Analyst : And then while on sales, maybe you can quickly talk about maybe the pricing strategy more broadly. It doesn't seem like price is a big part of your growth algorithm. You didn't mention it earlier, I don't think, which is a little bit different to most of the companies I cover. So maybe you can talk about why that may appear different, and if it actually could change in the future?

Question: Alex Kramm - UBS - Analyst : I'm being mindful of the time, but maybe we can squeeze two more questions in. So again, when that last question maybe goes hand-in-hand a bit of margins, the margin expansion you mentioned. So you are focused on margin expansion from here, but some people have argued to me in the last couple of weeks that maybe your margins -- well, they're low relative to some of the peers. So is that fair? Do you think there's more room for margin expansion going forward? Or how do you think about the margins overall?

Question: Alex Kramm - UBS - Analyst : Fair enough. And then maybe just broadly here again, but as you think about both revenue and cost, this conference is TMT and AI. So maybe briefly, how do you think about AI? How does Broadridge think about AI? Is there a vision for the company? And what areas do you see the most opportunities? I don't know if we have enough time for that, but --

Question: Alex Kramm - UBS - Analyst : We're technically out of time, but I did have another question on M&A strategy. You talked about it earlier. Was there anything else that we haven't talked about on the M&A side? Or --

Question: Alex Kramm - UBS - Analyst : Makes a lot of sense. Thank you for addressing that as well. And thanks for coming to the conference. Hope to see you again.