#1LPL Financial LPL FINANCIAL HOLDINGS INC. Q3 2022 INVESTOR PRESENTATION October 27, 2022 LPL Financial Member FINRA/SIPC#2Notice to Investors: Safe Harbor Statement Statements in this presentation regarding LPL Financial Holdings Inc.'s (together with its subsidiaries, the "Company") future financial and operating results, growth, priorities, business strategies and outlook, including forecasts and statements relating to the Company's future advisory and brokerage asset levels and mix, organic asset growth, deposit betas, core G&A expenses (including outlook for 2022), promotional, share-based compensation and depreciation and amortization expenses, Gross Profit* benefits, EBITDA* benefits, target leverage ratio, client cash balances and yields, service and fee revenue, transaction revenue, investments, capital returns, planned share repurchases, and the amount and timing of the onboarding of brokerage and advisory assets from People's United Bank ("People's"), Boenning & Scattergood and CUNA Mutual Group ("CUNA"), as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of October 27, 2022 and are not guarantees that the expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from the expressed or implied expectations of the forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties and delays in onboarding the assets of People's, Boenning & Scattergood or CUNA advisors; disruptions in the businesses of the Company, People's, Boenning & Scattergood or CUNA that could make it more difficult to maintain relationships with their respective advisors and their clients; the choice by clients of People's, Boenning & Scattergood or CUNA advisors not to open brokerage and/or advisory accounts at the Company; changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's strategy and success in managing client cash program fees; changes in the growth and profitability of the Company's fee-based offerings; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenues; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions; whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations; the costs of settling and remediating issues related to regulatory matters or legal proceedings, including actual costs of reimbursing customers for losses in excess of our reserves; changes made to the Company's services and pricing, and the effect that such changes may have on the Company's Gross Profit* streams and costs; the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements and efficiencies expected to results from its initiatives, acquisitions and programs; the effect of the COVID-19 pandemic, including efforts to contain it; and the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after October 27, 2022 and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to October 27, 2022. THIS PRESENTATION INCLUDES DATA AS OF SEPTEMBER 30, 2022, UNLESS OTHERWISE INDICATED. L LPL Financial Member FINRA/SIPC 2#3Notice to Investors: Non-GAAP Financial Measures Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company's current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company. Specific Non-GAAP financial measures have been marked with an asterisk (*) within this presentation. Reconciliations and calculations of such measures can be found in the appendix of this presentation. EPS prior to amortization of intangible assets and acquisition costs is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and EPS prior to amortization of intangible assets and acquisition costs because management believes that these metrics can provide investors with useful insight into the Company's core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company's ongoing operations. Adjusted net income and EPS prior to amortization of intangible assets and acquisition costs are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and EPS prior to amortization of intangible assets and acquisition costs, please see the appendix of this presentation. Gross profit is calculated as total revenue less advisory and commission expense and brokerage, clearing and exchange expense. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company's gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company's core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the appendix of this presentation. Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; loss on extinguishment of debt; promotional; acquisition costs; employee share-based compensation; and regulatory charges. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company's total expense as calculated in accordance with GAAP. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly a reconciliation of the Company's outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort. EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Company's earnings from operations. EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA, please see the appendix of this presentation. Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement ("Credit Agreement") as "Consolidated EBITDA," which is consolidated net income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, including unusual or non-recurring charges and gains, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company's debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the appendix of this presentation. THIS PRESENTATION INCLUDES DATA AS OF SEPTEMBER 30, 2022, UNLESS OTHERWISE INDICATED. LPL Financial Member FINRA/SIPC 3#4LPL Overview Mission We take care of our advisors so they can take care of their clients Key Markets and Services $1.0T+ Client Assets: • Advisory: $543B Brokerage: $496B 21,000+ Advisors: • Independent Advisors: 11,800+ • Independent RIA: 5,700+ (~500 firms) Vision Become the leader across the advisor-centered marketplace Purpose Serve advisors so they can... Help their clients achieve life's goals and dreams Be great entrepreneurs and run thriving businesses Strategy To bring our vision to life, we will deliver... Capabilities and services that help advisors provide differentiated experiences for their clients Personalized solutions – from flexible and compelling affiliation models, to services to help run extraordinary practices Q3 2022 Business Metrics Client Assets (end of period): Organic Net New Assets: Organic Annualized Growth: Recruited Assets(1): Advisors (end of period): Accounts (end of period): • Institutional Services: 3,500+ (~1,100 institutions) Key Metrics Q3 2022 LTM Financial Metrics $1.0T $19.9B 7% Average Client Assets: $1.1T Organic Net New Assets: $101B Organic Annualized Growth: 9% $13B Recruited Assets(1); $84B 21,044 Gross Profit*: $2.9B 7.8M EBITDA*: $1,217M EPS Prior to Amort. of Intangible $8.95 Assets and Acquisition Costs*: Q3 2022 Debt Metrics Debt Ratings (3) | Outlook Credit Agreement EBITDA* (LTM): Total Debt: $1.3B Moody's Rating: Ba1 | Positive+ $2.7B S&P Rating: BB+ | Positive Leverage Ratio(2): 1.72x Cost of Debt: 4.27% t On review for upgrade LPL Financial Member FINRA/SIPC 4#5L We continue to drive business and financial growth Total assets have nearly doubled Total Advisory and Brokerage Assets ($B) Organic asset growth has increased -3x Organic Net New Asset Growth Rate (Incl. dividends and interest, less advisory fees) EPS prior to amortization of Operating margin has increased intangible assets and acquisition ~3 points Operating Margin (EBITDA* % of Gross Profit*) costs has increased ~3x EPS Prior to Amortization of Intangible Assets and Acquisition Costs* Up -2x $1,206 $1,038 $903 $764 53% $615 $628 52% 51% 48% 44% 45% Up -3x 13.2% Up -3 Points Up -3x Acquisition costs $8.95 reduced LTM by 2 points 8.9% 48% 44% 43% 43% 7.4% 40% 38% 5.3% 3.7% 3.2% $2.84 $5.33 $7.17 $7.02 $6.46 2017 2018 2019 2020 2021 Q3'22 2017 2018 2019 2020 2021 Q3'22 LTM 2017 2018 2019 2020 2021 Q3'22 2017 2018 2019 2020 2021 Q3'22 LTM LTM Advisory % of Total Advisory and Brokerage Assets LPL Financial Member FINRA/SIPC 5#6Our vision is to become the leader across the entire advisor- centered marketplace PLAY 1 Meeting advisors where they are in the evolution of their practices Deepen our participation across traditional independent and third-party bank channels Redefine our industry with our new, transformative independent employee and RIA-only models PLAY 2 Helping advisors differentiate and win end- clients Create a leading end-to-end platform for advisors Develop and enhance end-client experiences PLAY 3 Delight advisors and their clients with industry-leading experiences Transform our service model into a customer care model Drive performance, efficiency and scale with a real-time, digital operating model Develop excellence in continuous improvement PLAY 4 Helping advisors run the most successful businesses in the industry Raise quality of execution and likelihood of success through our Services Group Deliver comprehensive financial advice and planning services Unlock growth, succession and protection through innovative growth and capital solutions A strategy to win in the marketplace LPL Financial Member FINRA/SIPC 6#7LPL investment highlights: significant opportunities to grow and create long-term shareholder value 1 Industry leader with scale, structural tailwinds, and expanded addressable markets 2 Expanded capabilities to enhance the advisor value proposition 3 Organic growth opportunities through net new assets and ROA 4 Resilient business model with natural hedges to market volatility 5 Disciplined expense management driving operating leverage 6 Capital-light business model with significant capacity to deploy 7 Opportunity to consolidate fragmented core markets through M&A LPL Financial Member FINRA/SIPC 7#81 Industry leader with scale, structural tailwinds, and expanded addressable markets We are a market leader with scale advantages and industry tailwinds Growing Demand for Advice Projected Growth in US Retail Investment Market Independent Channel Gaining Share Leading Position in Traditional Markets Total Advisor-Mediated Assets Traditional Markets (4) Tripling our Total Addressable Markets Expanded Addressable Markets (4) ~$5T LPL: ~2% Advisor-Mediated: 5% CAGR -$18T -$21T Waddell & Reed added 2% market share in 2021 -$24T 100% ~$32T ~$28T Other Employee Channels: 3% CAGR -28% -27% 80% -26% ~$3T LPL: -16% ~$24T ~$8T ~$7T Wirehouses: 60% ~$6T 2% CAGR BMO and M&T added -4% market share in 2021; CUNA and People's expected to add ~4% market share in 2022 Rest of Market: -98% Rest of Market: -99% ~$4T LPL: <1%(4) -36% -34% 40% ~$24T ~$21T Independent Channels: -31% Rest of Market: -84% ~$1T LPL: -16% -$18T 20% 8% CAGR -36% -39% -43% Rest of Market: ~84% 0% 2016 2019 2022E 2016 2017 2018 2019 2020 2021 2022E Traditional Independent Third-Party Financial Institution Advisory-oriented Independent Addressable Employee Channels Advisor-Mediated Discount Direct LPL Financial Member FINRA/SIPC 8#91 Industry leader with scale, structural tailwinds, and expanded addressable markets L We have tripled our addressable markets with new affiliation models Overview • • Advisory-Oriented Independent Market New ~$5T Opportunity Strategic Wealth Provides comprehensive support for "breakaway advisors" to move to independence • Includes enhanced, hands-on assistance through all aspects of new practice startup and transition Delivers tailored business support through strategic consulting and Business Solutions RIA-Only Advisory Enables RIAs to leverage fully-integrated capabilities, technology, services, and clearing platform Supported by dedicated relationship management teams along with practice-level support Provides the flexibility to outsource risk management and compliance (Corporate RIA) or manage internally (Independent RIA) • Independent Employee Market New ~$4T Opportunity Independent Employee Pairs the benefits of independence with the turnkey services of an employee model Enables advisors to own their client relationships and have the freedom to design their practices to fit their model for advice Increases payout for advisors versus traditional employee firms through a lower-cost model Progress We launched our Strategic Wealth model in April 2020 and have recruited over $8B in assets We relaunched our model for RIA-only advisors in April 2021 and have welcomed a number of new advisors We launched our Independent Employee model in August 2020 and have recruited over $4B in assets LPL Financial Member FINRA/SIPC 9#102 Expanded capabilities to enhance the advisor value proposition We have increased our investment in capabilities to enhance our advisor value proposition and drive growth We are focused on delivering capabilities that position advisors to spend more time with their clients Illustrative Advisor Time Allocation As a result, we have increased our technology investments over time Technology Portfolio Spend ($M) Client Management Enabled through capabilities ~70%+ ~12% ~$220 CAGR ~30-50% -$180 ~14% ~$160 ~$155 CAGR Investment Management ~30-40% ~10-20% -$120 -$105 -10% Practice Management -20-30% Historically 2017 2018 2019 2020 2021 2022 Outlook (5) L LPL Financial Member FINRA/SIPC 10#112 Expanded capabilities to enhance the advisor value proposition Advisory makes up the majority of our total assets Our business is shifting from brokerage to advisory Advisory Assets ($B) (6) Advisory % of Total Advisory and Brokerage Assets $643 $543 $461 $366 $273 $282 51% 53% 52% 48% 44% 45% The shift to advisory can create value . Assets are shifting from brokerage to advisory, consistent with industry trends, as end-clients seek greater levels of support from advisors Our mix of advisory is below industry levels of ~70% advisory Prior to large financial institutions, we are shifting towards advisory at a rate of ~2%+ per year Advisory ROA is ~10 bps higher than brokerage ROA, so a ~2% shift is ~$13M in annual Gross Profit* benefit 2017 2018 2019 2020 2021 Q3'22 • LTM Organic Growth Rate: 13% 9% 12% 14% 19% 11% Centrally managed platforms are growing within advisory Centrally Managed Assets ($B) (7) Centrally Managed Assets % of Total Advisory Assets $96 $83 • $67 $52 $33 $38 14% 14% 15% 15% 15% 12% Centrally managed platforms can create additional value within advisory • Outsourcing portfolio design and management can free up advisors' time to serve clients and grow their practices Advisors can also continue to design their own portfolios while outsourcing investment management tasks to LPL Centrally managed platforms have increased as a percentage of total advisory assets Centrally managed platform ROA is ~10 bps higher than advisory overall, so a 1% increase is $6M in annual Gross Profit* benefit 2017 2018 2019 2020 2021 Q3'22 • LTM Organic 22% 20% 17% 15% 30% 15% Growth Rate: LPL Financial Member FINRA/SIPC 11#12Business Services Planning & Advice Services 2 Expanded capabilities to enhance the advisor value proposition Our Services Group has grown to -4,200 subscriptions with annualized revenue of ~$34M in Q3 Planning and Advice Digital and employee-powered solutions that help advisors expand the breadth and depth of their advice Helps advisors increase marketplace differentiation while limiting additional complexity and risk Plans can average $1,000 per month Current Portfolio: Paraplanning In Development: Tax Planning and High Net Worth Services Business Optimizers Digital solutions that provide risk mitigation and business continuity services to support practice operations and succession planning Services Group Subscriptions Planning & Advice Services+ Business Optimizers Professional Services 4,233 3,896 169 3,529 63 94 3,022 2,598 2,605 Lower revenue and lower cost since they deliver digital capabilities 2,425 Subscriptions average $100+ per month 2,085 2,138 1,787 Current Portfolio: M&A Solutions, Digital Officet, Resilience Plan and Assurance Plan 1,715 1,499 1,410 In Development: Client Engage 1,219 1,188 910 657 Professional Services 516 Digital and employee-powered solutions that provide practice management expertise to increase practice-level growth and operational efficiency 1,099 1,235 1,328 1,377 1,459 703 753 805 897 • • Higher revenue and higher cost due to full support from an LPL team Subscriptions average $1,500+ per month Q3 74 Current Portfolio: Business Strategy Services*, Marketing Solutions and Admin Solutions 2020 Q4 Q1 Q2 Q3 Q4 Q1 2021 Q2 2022 Q3 Recently Launched: Bookkeeping t Based on feedback from advisors, CFO Solutions was rebranded as Business Strategy Services and Remote Office was rebranded as Digital Office to better align with the breadth of the offering to advisors LPL Financial Member FINRA/SIPC 12 Subscriptions are the number of advisors using the service#132 Expanded capabilities to enhance the advisor value proposition We are digitizing key advisor workflows to help drive practice - scalability and efficiency ClientWorks Connected 1 2 3 4 5 6 M Attracting Prospects (Lead gen) Turning Prospects New Account into Clients (Getting to yes) Onboarding (Attracting new assets) Managing Portfolios (Creating great investor outcomes) Client Management (Goals-based planning) Servicing Client Requests (Helping clients live their lives) For each of the platforms, we are integrating a free solution as well as leading third-party options LPL Financial Member FINRA/SIPC 13#143 Organic growth opportunities through net new assets and ROA We continued to drive solid organic growth with a net new asset growth rate of ~9% for the past year Total Organic Net New Assets (8) ($B) Organic Total NNA+ Organic Annualized Growth Rate* Organic Net New Advisory Assets (9) ($B) Organic Advisory NNA+ Net Brokerage to Advisory Conversions (10) Organic Annualized Growth Rate* L Organic Net New Brokerage Assets (9) ($B) Π Organic Brokerage NNA+ Net Brokerage to Advisory Conversions (10) Organic Annualized Growth Rate* 7.4% 5.3% 3.2% 3.7% $56 $33 $16 $23 $119 13.2% $101 8.9% $89 19.4% $64 13.2% 13.6% 11.8% 10.8% 9.0% $50 $33 $28 $25 6.7% 6.8% 1.7% $37 (0.6%) 0.1% $29 (4.0%) $7 $8 $7 $7 $9 $13 $10 ($12) ($2) $0 2017 2018 2019 2020 2021 Q3'22 LTM 2017 2018 2019 2020 2021 Q3'22 LTM ($7) ($7) ($9) ($13) ($10) ($8) 2017 2018 2019 2020 2021 Q3'22 LTM Ex. Large Financial Institutions Organic Growth Rate: Organic NNA: 9.3% $84 6.2% $70 Ex. Large Financial Institutions Organic Growth Rate: Organic NNA: 17.6% $81 10.5% $62 Ex. Large Financial Institutions Organic Growth Rate: 0.6% 1.4% Organic NNA: $3 $8 † Prior to Q4 2021, net new assets and net new assets growth rates exclude the assets of Waddell & Reed LPL Financial Member FINRA/SIPC 14#153 Organic growth opportunities through net new assets and ROA We are the leading third-party provider to financial institutions Serving ~1,100 institutions with ~$260B(11) in assets We onboarded BMO and M&T in 2021, CUNA in Q2 2022 and People's United Bank in Q3 2022 CUNA MUTUAL GROUP Wealth management business of CUNA Mutual Group ~$36B in assets and 550+ advisors Onboarded in Q2 2022 Our Value BMO • • We provide financial institutions with access to an array of investment solutions and wealth management platforms to enhance and scale their business. With LPL, financial institutions can provide retail clients with enhanced capabilities, grow their business faster, increase profitability, and lower regulatory risk. M&T Bank BMO Fortune 500 bank with 700+ branches nationwide ~$20B in assets and 170+ advisors Onboarded in Q2 2021 Top 10 Financial Institutions on LPL's Platform BECU CUNA Central Bank MUTUAL GROUP New York M&T Bank Community Bank OLD NATIONAL Member FDIC SOUTH STATE STERLING Webster Bank BANK NATIONAL BANK People's United A division of M&T Bank Bank with 500+ branches nationwide ~$15B in assets and 115+ advisors Onboarded in Q1 2021 M&T acquired People's United Bank and elected to onboard the wealth management business to LPL's platform -$6B in assets and 30+ advisors Onboarded in Q3 2022 Financial Institutions Channel AUM M&T and BMO combined added -$35B of assets in 2021 ~$270B ~$265B ~$200B ~$170B 2019 2020 † Includes approximately $4.4B (CUNA) and $0.5B (People's) of assets on third-party management platforms, which LPL does not include in its reporting of total advisory and brokerage assets 2021 Q3+ CUNA and People's LPL Financial Member FINRA/SIPC 15#163 Organic growth opportunities through net new assets and ROA As advisors use more of our services, our returns increase We have seen a favorable mix shift in our platforms (12) Additional drivers of growth Gross Profit* ROA Brokerage (13) ~15-20 bps +-10 bps Assets down 8% YOY Advisory(6) ~25-30 bps (higher ROA when using Corporate platform) Services Group ~40-45 bps +10 bps Centrally Managed (7) ~35-40 bps +-5 bps 4,233 Subscribers New Models Assets down 9% YOY Assets down 6% YOY Services Provided to Advisors Strategic Wealth Independent Employee Model RIA-Only Model Enhanced Services & Capabilities Industry-leading service experience New integrated layer of capabilities LPL Financial Member FINRA/SIPC 16#174 Resilient business model with natural hedges to market volatility We benefit from rising market levels and interest rates, and our business model has natural hedges to market volatility Macro benefits Market Levels (S&P 500) Rising market levels drive growth in assets and related revenues including advisory fees, trailing commissions, and sponsor revenues Interest Rates Rising interest rates benefit on client cash yields Annual Gross Profit* Impact ~$10M Per 1% increase in market levels ~$1,000M (14) Over first +300 bps of rate hikes Natural offsets to market declines Cash Sweep Balance Increased risk and volatility in the market drives higher cash sweep balances Transaction Volume Increased risk and volatility in the market drives additional portfolio rebalancing activity and higher transaction volumes As equity markets declined in 1H 2022, cash balances increased by ~$13B, which translates to a ~$390M benefit annually (15) Transaction revenue increased ~$7M sequentially in Q1 2022 LPL Financial Member FINRA/SIPC 17#184 Resilient business model with natural hedges to market volatility We are well positioned to benefit from rising interest rates Client Cash Balances (16) ($B) ■ICA Sweep (EOP) CCA (EOP) ■DCA Sweep (EOP) ■Money Market Sweep (EOP) --Average Yield(17) $66.8 Annual potential Gross Profit* benefit from rising interest rates Over the last interest rate cycle, our deposit beta averaged -15% • Deposit betas were much lower early in the cycle, averaging ~2.5% over the first 4 Fed rate hikes $57.1 $3.3 $3.2 . After the first 4 rate hikes, deposit betas averaged ~25% $1.7 $48.5 $12.7 $1:3 $16.1 . $36.0 $8.2 $31.0 $32.5 $1.2 $9.3 $4.9 $1.1 $1:9 $37.3 $2.8 $5.1 $5.0 $47.7 $4.2 $24.8 $24.4 This cycle, deposit betas were consistent on the first 100 bps, and favorable on subsequent hikes Applying historical deposit betas to our current cash balances would yield: ~$60M of Annual Gross Profit* per subsequent rate hike, at a -25% deposit beta Estimated Interest Rate Sensitivity based on current balances + $22.9 $30.0 172 bps 216 bps Fed Funds rate target range as of October 27, 2022 ~$1,235M 105 bps 117 bps 75 bps 100 bps ~$1,175M ~$1,115M ~$1,055M -$995M ~$930M 2017 2018 2019 2020 2021 Q3'22 LTM ~$865M ~$800M ~$720M Average Yields (in bps) ICA Sweep 113 184 240 133 100 137 DCA Sweep 90 183 211 53 24 66 MM Sweep 64 73 73 22 3 23 CCA(18) 84 188 208 56 15 71 +200 bps +225 bps +250 bps +275 bps +300 bps +325 bps +350 bps +375 bps +400 bps Fed Funds rate target range (bps) Average 105 172 216 117 75 100 Client Cash % 5.0% 5.7% 4.3% 5.4% 4.7% 6.4% of Total Assets 200 225 225-250 250-275 275-300 300 - 325 325-350 350-375 375-400 400-425 Deposit Beta 10% 10% 20% 20% 20% 25% 25% 25% 25% Actual Prior Cycle Average Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC t Assumes change based on Q3 2022 end of period cash balances. Gross Profit* benefit is measured relative to a Fed Funds target range of 0 to 25 bps. 18#194 Resilient business model with natural hedges to market volatility ICA balances continued to grow, as demand increased for both fixed and variable contracts ICA Balances, including Money Market Overflow ($B) ■Money Market Overflow Balances ■Overflow ICA Balances Variable ICA Balances Fixed Rate ICA Balances Fixed Rate ICA Balance % ~50% -35% -35% ~40% -25% ~5% $47.7 $43.8 $37.3 $13.9 $2.1 $29.0 $1.7 $24.8 $24.4 $22.7 $0.9 $22.7 $17.6 $12.1 $14.9 $21.2 Overflow balances provide capacity when balances spike Historically, when ICA balances exceeded our fixed and variable contract capacity, we utilized money market overflow contracts Given improved bank deposit demand and the launch of CCA, we no longer have any money market overflow balances Variable balances are primarily indexed to Fed Funds . • Our variable ICA balances grew in the quarter, as demand increased from third-party banks Most variable balances are indexed to Fed Funds + a spread (~5 to ~15 bps) In the current environment, new variable contracts are averaging Fed Funds plus 5 to 10 bps Fixed rate ICA contracts are laddered over ~4 years New contracts: In Q3, we added ~$5B of fixed rate balances maturing in 2024-26, with a ~390 bps yield consistent with the 2-4 year points on the curve when contracted Maturing Contracts ($B) as of end of Q3 2022 יח ☐ New contracts added in Q3 2022 $6.1 $18.6 $2.0 $3.8 $12.3 $12.4 Matures in Q4 $5.0 $2.5 $9.0 $10.6 $4.1 $1.5 I $1.5 $1.5 2017 $2.3 $1.2 $1.0 2018 2019 2020 2021 Q3'22 Maturing Yield (bps) 2022 2023 2024 2025 2026 ~265 -330 ~235 -300 -295 † Weighted average yield across ladder is -285 bps Note: Yields shown on this page are prior to client deposit rates (~17 bps) and administrator fees (~4 bps). Money market sweep balances are not subject to these costs. LPL Financial Member FINRA/SIPC 19#205 Disciplined expense management driving operating leverage We remain focused on investing to drive organic growth while delivering long-term operating leverage in our core business Long-term cost strategy Deliver operating leverage in core business Prioritize investments that drive additional growth Drive productivity and efficiency Adapt cost trajectory as environment evolves Recent expense trajectory, prior to acquisitions Annual Core G&A* Growth 2022 Core G&A* context • • • • Our most recent 2022 Core G&A* plans were for a range of $1,170M to $1,195M Given year-to-date results, and opportunities to invest to drive growth, we expect to be towards the higher end As a result, we are raising the low end of our 2022 outlook range by $15 million, translating to an updated 2022 Core G&A range of $1,185M to $1,195M This translates to a Q4 2022 Core G&A* range of $320M to $330M Core G&A* outlook ~10.5% 13% -12% - ~13% 8% 6% 6.5% Q3 2022 Actual YTD 2022 $298M $865M 2019 2020 2021 Prior to Waddell & Reed 2022 Previous Outlook 2022 Updated 2022 Outlook $1,185M to $1,195M " Outlook LPL Financial Member FINRA/SIPC 20 20#21. 6 Capital light business model with significant capacity to deploy Our capital management strategy is focused on driving growth and maximizing shareholder value Our capital management principles Disciplined capital management to drive long-term shareholder value Maintain a strong and flexible balance sheet о Management target leverage ratio range of 1.5x to 2.5x о Flexible debt structure to support capital allocation Prioritize investments to support and drive organic growth Recruiting to drive net new assets Capital to support advisor growth and advisor M&A Investments in capabilities to attract new advisors and assets Capitalize on opportunistic M&A Dynamic capital allocation framework ROI Returns and opportunities vary over time M&A Organic growth о Remain prepared for attractive opportunities Return excess capital to shareholders Share repurchases Dividends Share repurchases / Dividends Use of cash LPL Financial Member FINRA/SIPC 21#226 Capital light business model with significant capacity to deploy Due to our improved earnings profile, we are lowering our target leverage range Repositioning for Macroeconomic Conditions . • Continued growth, combined with an improved interest rate environment, meaningfully improved our earnings power - driving down our leverage ratio • Accordingly, we lowered our target leverage ratio to a range of 1.5 to 2.5 times Leverage Ratio (2) Prior Management Target Range 2.81x 2x-2.75x 2.15x Updated Management Target Range 2.26x 2.16x 2.05x 1.5x − 2.5x 1.72x • This new range positions us well to operate over a range of economic cycles and strikes the right balance between preserving balance sheet strength and investing for growth 2017 2018 2019 2020 2021 Q3'22 Balance Sheet Principles • • Balance sheet strategy is unchanged - maintain a strong balance sheet that can absorb market volatility while having the capacity to invest for growth A long-term target leverage range of 1.5x to 2.5x positions our balance sheet well over a range of cycles We are willing to operate temporarily above our target range if attractive M&A opportunities arise At the top end of our target leverage range, we have the capacity to deploy up to ~$2.6B of additional capital • We maintain a management target of at least $200 million in Corporate Cash (19)† † Management's corporate cash target covers approximately 18 months of principal and interest due on corporate debt LPL Financial Member FINRA/SIPC 22 222#236 Capital light business model with significant capacity to deploy We have significant capital deployment capacity... Capital Deployment Capacity Above target leverage range Up to 2.5x leverage ~$1.5-1.8B 4 ~$480M-$750M 3 ~$820M 2 ~$220M 1 Capital Deployment Capacity Estimate as of Q3 2022 Potential M&A capacity above our target range Willing to temporarily go above our target leverage range for attractive M&A opportunities Incremental M&A leverage capacity within our target range Incremental capital accessible if all other capacity were deployed for M&A at a 6-8x purchase multiple (20) Additional leverage capacity Capital available to deploy up to 2.5x leverage Discretionary cash Corporate cash available to use above $200M management target as of Q3 2022 LPL Financial Member FINRA/SIPC 23#246 Capital light business model with significant capacity to deploy ☐ ...And we have continued to return capital to shareholders Share Repurchases and Dividends ($M) Share Repurchases Dividends Repurchased >10% of shares over 2018-2019 $506 $583 Capital deployment focused on organic growth and M&A New share repurchase authorization of $2B represents ~11% of our market capitalization+ $500 $305 $418 $229 $204 $170 $225 $114 $150 $90 $90 $88 $83 $79 $80 $80 2017 2018 2019 2020 2021 Q3'22 LTM Average Diluted Share Count (M): 92.1 90.6 84.6 80.7 † Increased share repurchase authorization by $2B as of 09/21/2022, which we plan to begin to utilize in 2023, following $150M of planned share repurchases in Q4'22 81.7 81.5 LPL Financial Member FINRA/SIPC 24 24#257 Opportunity to consolidate fragmented core markets through M&A Our addressable markets are fragmented, with potential for consolidation Addressable markets(4) Growth potential from consolidation Traditional Markets (4) Expanded Markets (4) ~$3T LPL: -16% Rest of Market: -84% ~$1T LPL: -16% Rest of ~$5T LPL: ~2% ~$4T LPL: <1% Rest of Market: -98% Rest of Market: -99% Market: ~84% Traditional Independent Third-Party Financial Institution Advisory-oriented Independent Addressable Employee Channels • • • Our scale, capabilities, and economics give us competitive advantages in M&A The traditional and advisory-oriented markets are fragmented with consolidation opportunities Rising cost and complexity is making it harder for smaller players to compete Therefore, we believe consolidation can drive value by adding scale, increasing our capacity to invest in capabilities, and creating shareholder value LPL Financial Member FINRA/SIPC 25#26L ☐ 7 Opportunity to consolidate fragmented core markets through M&A Recent acquisitions (1) have added scale in our traditional markets, accelerated our expansion into new markets, and added new capabilities WADDELL &REED Financial, Inc. 2021 -$74B of assets transferred Traditional Markets Transaction closed on ☐ LUCIA SECURITIES- 2020 E.K.RILEY INVESTMENTS, LLC 2020 New Markets ALLEN & fco COMPANY EST. 1932 2019 ~$1.5B assets ~$2B assets ~$3B assets transferred Leading San Diego practice with approximately 20 advisors National Planning HOLDINGS, INC. Leading Seattle practice with approximately 35 advisors Leading Florida practice ■ Affiliated under our employee model FINANCIAL RESOURCES GROUP Investment Services ☐ April 30, 2021 for a purchase price of $300M Large independent broker-dealer network ■ Added to our scale and leadership position Increases our scale and capacity to invest in capabilities, technology, and service to help existing advisors serve their clients and differentiate in the marketplace 2017 ~$70B assets transferred ☐ Large independent broker-dealer network ☐ (1) Includes both closed and pending acquisitions Added to our scale and leadership position 2022 ~$40B assets Existing LPL branch office with approximately 800 advisors and 85 financial institutions Leading provider of managed programs for banks and credit unions, a strategic complement to our existing institutional offering ☐ BOENNING & SCATTERGOOD ESTABLISHED 1914 2022 ~$5B of assets as of June 2022 Leading Pennsylvania practice with approximately 40 advisors Affiliated under our employee model Expected to close in early 2023 Capabilities BlazePortfolio 2020 Industry-leading capabilities ~$12M purchase price ■ Innovative trading and rebalancing capabilities to drive efficiency and scale in advisors' practices ADVISORYWORLD FINANCIAL TECHNOLOGY 2018 Industry-leading capabilities -$28M purchase price Leading provider of digital tools for advisors that serves more than 30,000 U.S. financial advisors and institutions LPL Financial Member FINRA/SIPC 26#27As we continue to invest and increase our scale, we enhance our ability to drive further growth Invest in differentiated capabilities and a unique advisor experience Invest in advisor value · value proposition Increase Attract assets and advisors, and benefit from greater use of our services e scale in assets & advisors Long-term Shareholder Value and EPS Remain disciplined on expenses and return capital to shareholders Grow earnings LPL Financial Member FINRA/SIPC 27 22#28We are focused on executing our strategy and delivering results Total Advisory and Brokerage Assets (22) ($B) Organic Net New Asset Growth Key Earnings Growth Drivers 11% CAGR $1,206 $1,038 $903 $764 $615 $628 Up -3x 13.2% 8.9% 7.4% 5.3% 3.2% 3.7% 2017 2018 2019 2020 2021 Q3'22 2017 2018 2019 2020 2021 Q3'22 LTM Gross Profit* ($M) 13% CAGR $2,860 $2,455 $2,172 $2,103 $1,948 $1,555 EPS Prior to Amortization of Intangible Assets and Acquisition Costs* 26% CAGR $8.95 $7.17 $7.02 $6.46 $5.33 $2.84 2017 2018 2019 2020 2021 Q3'22 2017 2018 2019 2020 2021 LTM Q3'22 LTM Enhanced Advisor Value Proposition (Capabilities, Technology, Service) Increased Organic NNA (Opportunities in Traditional Markets) New Affiliation Models (Large Financial Institutions, Strategic Wealth Services, Independent Employee, RIA-Only) Greater Use of our Services (Advisory, Corporate, Centrally Managed, Business, Planning & Advice Services, Advisor Capital Solutions) Drive Operating Leverage in Core Business while Investing for Additional Growth Increased Scale and Capabilities through M&A Excess Capital Deployment (Technology, Advisor Capital, Returning Capital to Shareholders) LPL Financial Member FINRA/SIPC 28#29APPENDIX LPL Financial Member FINRA/SIPC#30Reconciliation Gross Profit* Gross profit* is a non-GAAP financial measure. Please see a description of gross profit under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below is a calculation of gross profit* for the periods presented herein: $ in millions Total revenue Advisory and commission expense Brokerage, clearing and exchange expense Gross Profit Net Income to EBITDA* and Credit Agreement EBITDA* Q3'22 LTM $8,362 5,414 87 $2,860 2021 $7,721 5,180 86 $2,455 2020 $5,872 3,697 71 $2,103 2019 $5,625 3,388 64 $2,172 2018 $5,188 2017 $4,281 3,178 63 2,670 57 $1,948 $1,555 EBITDA* and Credit Agreement EBITDA* are non-GAAP financial measures. Please see a description of EBITDA* and Credit Agreement EBITDA* under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below are reconciliations of the Company's net income to EBITDA* and Credit Agreement EBITDA* for the periods presented herein: $ in millions Q3'22 LTM 2021 2020 2019 2018 2017 Net income $635 $460 $473 $560 $439 $239 Interest expense on borrowings 116 104 106 130 125 107 Provision for income taxes Depreciation and amortization Amortization of other intangibles EBITDA Credit Agreement adjustments Credit Agreement EBITDA Total debt Total corporate cash 194 141 153 182 153 126 186 151 110 96 88 84 85 79 67 65 60 38 $1,217 $936 $909 $1,033 $866 $594 127 214 52 48 103 151 $1,345 2,741 424 $1,151 $961 2,839 237 2,359 280 $1,081 2,415 204 $969 $745 2,381 2,396 300 300 Credit Agreement Net Debt Leverage Ratio 2.81x Note: During the third quarter of 2021, the Company changed its definition of EBITDA to include the loss on extinguishment of debt and has updated prior period disclosures to reflect this change as applicable. $2,316 1.72x $2,602 2.26x $2,079 2.16x $2,211 2.05x $2,081 $2,096 2.15x Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC 30 30#31Reconciliation EPS prior to amortization of intangible assets and acquisition costs* and Adjusted Net Income* EPS prior to amortization of intangible assets and acquisition costs* and adjusted net income* are non-GAAP financial measures. Please see a description of EPS prior to amortization of intangible assets and acquisition costs* and adjusted net income* under "Non-GAAP Financial Measures" on page 3 of this presentation for additional information. Below are the following reconciliations of net income and earnings per diluted share to adjusted net income and EPS prior to amortization of intangible assets and acquisition costs for the periods presented herein: $ in millions, except per share data Q3'22 LTM Amount Per Share 2021 Net income / earnings per diluted share $635 Amortization of other intangibles 85 $7.79 1.05 Amount Per Share $460 $5.63 2020 Amount Per Share $473 79 0.97 67 $5.86 0.83 2019 Amount Per Share $560 65 $6.62 0.76 2018 Amount Per Share $439 2017 60 $4.85 0.66 Amount Per Share $239 $2.59 38 0.41 Acquisition costs (23) 44 0.53 76 0.93 0.00 0.00 0.00 0.00 Tax benefit (34) (0.42) (41) (0.51) (19) (0.23) (18) (0.21) (17) (0.19) (15) (0.16) Adjusted net income / EPS prior to amortization of intangible assets and acquisition costs $730 $8.95 $574 $7.02 $521 $6.46 $607 $7.17 $482 $5.33 $262 $2.84 Diluted share count 81.5 81.7 80.9 85.0 91.0 92.0 Note: Totals may not foot due to rounding LPL Financial Member FINRA/SIPC 31#32L Endnotes (1) Represents the estimated total advisory and brokerage assets expected to transition to the Company's broker-dealer subsidiary, LPL Financial LLC ("LPL Financial"), associated with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate. (2) The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA for the trailing twelve months. (3) Represents Moody's Corporate Family Rating and S&P Issuer Credit Rating. (4) LPL estimates based on 2019 Cerulli channel size and advisory share estimates and include market adjustment for 2019. (5) 2022 outlook is prior to M&A- and large bank-related onboarding spend in technology. (6) Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial or Allen & Company of Florida, LLC ("Allen & Company") and total assets on LPL Financial's independent advisory platform serviced by investment advisor representatives of separate investment advisor firms ("Independent RIAS"), rather than of LPL Financial. (7) (8) Consists of advisory assets in LPL Financial's Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios, and Guided Wealth Portfolios platforms. In April 2020, the Company updated its definition of net new assets to include dividends plus interest, minus advisory fees. Unless otherwise noted, net new assets figures for periods prior to Q2 2020 appearing in this presentation have been recast using the updated definition. (9) Consists of total client deposits into advisory or brokerage accounts (including advisory or brokerage accounts serviced by Allen & Company advisors) less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively. Annualized growth is calculated as the current period organic net new advisory or brokerage assets divided by preceding period total advisory or brokerage assets, multiplied by four. (10) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage. (11) LPL Institution Services AUM from banks and credit unions as of September 30, 2022. (12) Year-over-year comparisons are based on the change from Q3 2021 to Q3 2022. (13) Consists of brokerage assets serviced by advisors licensed with LPL Financial. (14) Assumes change based on Q3 2022 end of period ICA balances, presented on page 18. Additionally, as money market overflow balances shift back into ICA, there would be an additional upside of ~$20M per rate hike at a ~10% deposit beta. (15) Based on variable client cash balances indexed to Fed Funds. (16) During the second quarter of 2022, the Company updated its definition of client cash balances to include client cash accounts and exclude purchased money market funds. Client cash accounts include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. Prior period disclosures have been updated to reflect this change as applicable. (17) Calculated by dividing revenue for the period by the average balance during the period. (18) Calculated by dividing interest income earned on cash held in the CCA for the period by the average CCA balance, excluding cash held in CCA that has been used to fund margin lending, during the period. The remaining cash is primarily held in cash segregated under federal or other regulations in the condensed consolidated balance sheets. (19) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries, as defined by the Company's Credit Agreement, which include LPL Financial and The Private Trust Company, N.A., in excess of the capital requirements of the Company's Credit Agreement (which, in the case of LPL Financial, is net capital in excess of 10% of its aggregate debits, or five times the net capital required in accordance with Exchange Act Rule 15c3-1), and (3) cash and equivalents held at non-regulated subsidiaries. (20) Additional leverage capacity is assumed to be generated by acquired EBITDA* from an M&A opportunity at a 6-8x purchase multiple for which capital was deployed up to 2.5x leverage. (21) The up-front purchase price for Blaze Portfolio was $12M, with up to $5M in earn-out payments. (22) Consists of total advisory and brokerage assets under custody at LPL Financial and Waddell & Reed, LLC. (23) Acquisition costs include the costs to setup, onboard and integrate acquired entities. The below table summarizes the primary components of acquisition costs for the periods presented: $ in millions Compensation and benefits Professional services Promotional Other Acquisition costs Q3'22 LTM 2021 $23.1 $36.4 15.6 18.7 3.9 14.3 1.4 6.9 $44.0 $76.3 LPL Financial Member FINRA/SIPC 32