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Investor Presentaiton

Reconciliation 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
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