Annual Meeting of Shareholders - BROADRIDGE FINANCIAL SOLUTIONS INC

Financial Performance:

• Consolidated net sales reached a record $1.93 billion for fiscal year ended June 30, 2026, representing a 1.1% increase year-over-year.
• Retail net sales remained flat at $1.0 billion, driven by the grain and dough portfolio (NY bakery items, Texas Roadhouse rolls) and new Vachon sauces.
• Food service net sales grew 2.4% to $927 million, supported by national chain restaurant customers.
• Consolidated gross profit increased 4.7% to $477.3 million, marking the fourth consecutive year of record highs, driven by cost savings programs.
• Operating income rose 8.3% to $238.7 million, achieving the third consecutive year of record highs, despite higher SG&A expenses.
• Quarterly dividend increased by 6% to $1.05 per share, marking the company's 64th consecutive year of annual dividend increases.

Guidance and Future Outlook:

• Management anticipates continued retail growth in fiscal 2027 driven by incremental sales from the Vachon acquisition and new product pipeline launches.
• Food service sales are expected to be supported by select quick-service restaurant (QSR) partners and national accounts focused on menu innovation.
• Long-term strategy rests on three pillars: accelerating core business growth, simplifying the supply chain to reduce costs and grow margins, and expanding via focused M&A and strategic licensing.
• The company aims to deliver innovation reflecting changing consumer tastes while maintaining a commitment to high quality.

Business Segments and Product Lines:

• Acquisition: Completed the May acquisition of Vachon, a premium Japanese barbecue sauce brand with clean-label products, to expand leadership in the sauce category across retail and food service.
• Core Portfolio: Strength in the grain and dough portfolio, including New York bakery items and Texas Roadhouse rolls.
• Integration: Vachon products have been added to both retail and food service portfolios, complementing existing family recipe-based brands.
• Supply Chain: Temporary supply agreements affecting non-core sales concluded during the quarter ended March 31, 2026, no longer impacting results.

Market and Competitive Landscape:

• The company continues to leverage the "authenticity" of its portfolio, rooted in family recipes and distinct origin stories.
• Growth is being driven by partnerships with national chain restaurant operators to develop authentic, craveable flavors.
• The acquisition of Vachon reinforces the company's position in the growing premium sauce category.
• 11 consecutive years of record net sales indicate strong market positioning and resilience.

Risks and Challenges:

• SG&A Expenses: Higher selling, general, and administrative expenses partially offset the benefits of increased gross profit during the fiscal year.
• Supply Chain Constraints: Mention of a concluded temporary supply agreement suggests potential vulnerability in non-core sales or logistics dependencies.
• Market Volatility: Reliance on national chain customers implies exposure to QSR industry fluctuations.

Management Commentary and Tone:

• Management expressed high confidence in the company's future, citing shared commitment to authenticity in products and operations.
• Tone was celebratory regarding record financial performance and shareholder returns, while emphasizing gratitude for employee dedication.
• Strategic focus was placed on the "Marzetti Company" rebranding to better reflect the expanded portfolio honoring founders like Vachon.

Analyst Questions and Answers:

• No formal analyst Q&A session occurred as this transcript represents the Annual Meeting of Shareholders focused on governance and board matters rather than a dedicated earnings Q&A.
• The meeting concluded with an announcement of the dividend increase and the election of new directors.

Other Key Points:

• Board Changes: Bob Fox retired after a 35-year tenure (since 1991); Greg Hughes was elected to the board as President and CEO of Suntory Global Spirits, bringing food and beverage expertise.
• Governance: Directors elected for three-year terms; executive compensation and Deloitte & Touche as the independent auditor were ratified.
• Operational Focus: Emphasis on employee safety, food safety, and food quality as foundational to business trust.
• Shareholder Count: 27,290,749 common shares were outstanding and entitled to vote as of the record date.