Investor Presentaiton

€2 (1) (2) (3) Endnotes The Company calculates its leverage ratio as total debt less total corporate cash, divided by Credit Agreement EBITDA for the trailing twelve months. Other employee channels include National & Regional B/D, Insurance B/D, and Retail bank B/D channels. Independent channels include independent B/D, Hybrid RIA, and Independent RIA channels. Estimated market sizing based on 2021 Cerulli reports, unless otherwise noted. Below are reconciliations of each market: Traditional Market Independent B/D RIA Market Hybrid RIA Employee Channel National & Regional B/D Wirehouse Independent RIA (-) Adj. to avoid double-counting Boutique B/D Enterprise Channel Insurance B/D Bank Trust Product Manufacturers* Boutique B/D* Retail bank B/D (-) Adj. to Retail bank B/D: Chase & Wells Fargo (4) (5) (6) (7) (8) (9) * Estimated market sizing based on LPL estimates. Product Manufacturers defined as fund companies with an adjacent traditional wealth management business serving individuals. Boutique B/D defined as National & Regional B/Ds with less than $50B AUM, which we view as an Enterprise market opportunity 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. 2022 is prior to M&A- and enterprise-related onboarding spend in technology. Consists of brokerage assets serviced by advisors licensed with LPL Financial. 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. 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. (10) 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. (11) Assumes change based on Q1 2023 end of period ICA balances, presented on page 21. (12) Annual benefit measured in total revenue. Based on variable client cash balances indexed to Fed Funds. (13) 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. (14) Calculated by dividing revenue for the period by the average balance during the period. (15) Calculated by dividing interest income earned on cash held in the Client Cash Account (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. (16) Calculated using the summation of the following components: (1) corporate cash available to use above $200M management target range, (2) the additional leverage capacity above current leverage times trailing twelve month Credit Agreement EBITDA, and (3) the additional leverage capacity from an M&A opportunity at a 6x purchase multiple for which capital was deployed up to 2.5x leverage. (17) Management's corporate cash target covers approximately 18 months of principal and interest due on corporate debt. (18) 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, Financial Resources Group Investment Services, LLC 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 and Financial Resources Group Investment Services, LLC, is net capital in excess of 10% of their 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. (19) 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. (20) Consists of total advisory and brokerage assets under custody at LPL Financial and Waddell & Reed, LLC. As of March 31, 2023, there were no assets under custody at Waddell & Reed. (21) During the first quarter of 2023, the Company updated its presentation of employee deferred compensation to be consistent with its presentation of advisor deferred compensation. As a result, gains or losses related to market fluctuations on advisor and employee deferred compensation plans are presented in the same line item as the related increase or decrease in compensation expense for purposes of Management's Statements of Operations. This change has not been applied retroactively as the impact on prior periods was not material. (22) 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 Professional services Compensation and benefits Promotional Other Acquisition costs Q1'23 LTM $8.0 2022 $12.0 2021 $18.7 15.8 20.6 36.4 0.6 2.3 14.3 1.5 1.3 7.0 $25.9 $36.2 $76.4 LPL Financial Member FINRA/SIPC 37 34