Deluxe : Q1 2024 Deluxe Investor Presentation

First Quarter 2024 Earnings

May 1, 2024

© 2024 Deluxe Corporation

Brian Anderson

Vice President,

Strategy & Investor Relations

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Today's Presenters

Barry McCarthy	Chip Zint	Brian Anderson
President and	Senior Vice President and	Vice President,
Chief Executive Officer	Chief Financial Officer	Strategy & Investor Relations

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Cautionary Statement

Statements made in this presentation concerning Deluxe, the company's or management's intentions, expectations, outlook or predictions about future results or events are "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current intentions or beliefs and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: changes in local, regional, national and international economic or political conditions, including those resulting from heightened inflation, rising interest rates, a recession, or intensified international hostilities, and the impact they may have on the company, its data, customers, or demand for the company's products and services; the effect of proposed and enacted legislative and regulatory actions affecting the company or the financial services industry as a whole; continuing cost increases and/or declines in the availability of data, materials and other services; the company's ability to execute its transformational strategy and to realize the intended benefits; the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the company's control; declining demand for the company's checks, check-related products and services and business forms; risks that the company's strategies intended to drive sustained revenue and earnings growth, despite the continuing decline in checks and forms, are delayed or unsuccessful; intense competition; continued consolidation of financial institutions and/or bank failures, thereby reducing the number of potential customers and referral sources and increasing downward pressure on the company's revenue and gross profit; risks related to acquisitions, including integration-related risks and risks that future acquisitions will not be consummated; risks that any such acquisitions do not produce the anticipated results or synergies; risks that the company's cost reduction initiatives will be delayed or unsuccessful; risks related to any divestitures contemplated or undertaken by the company; performance shortfalls by one or more of the company's major suppliers, licensors, data or service providers; continuing supply chain and labor supply issues; unanticipated delays, costs and expenses in the development and marketing of products and services, including financial technology and treasury management solutions; the failure of such products and services to deliver the expected revenues and other financial targets; risks related to security breaches, computer malware or other cyber-attacks; risks of interruptions to the company's website operations or information technology systems; and risks of unfavorable outcomes and the costs to defend litigation and other disputes. The company's forward-looking statements speak only as of the time made, and management assumes no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the company's current expectations are contained in the company's Form 10-K for the year ended December 31, 2023, and other filings made with the SEC. The company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

Portions of the financial and statistical information that will be discussed during this call are addressed in more detail in today's press release which is posted on our investor relations website at deluxe.com. This information was also furnished to the SEC on the Form 8-K filed by the Company this evening. Any references to non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release and as part of this presentation.

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Barry McCarthy

President and Chief Executive Officer

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Q1'24 Financial Overview -

Investing to drive growth in Payments and Data

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North Star Progress & Timelines

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Q1'24 Highlights

(in millions)

-1.9%		+1.2%

n/m = not meaningful

n/m

+0.1%

+7.0%

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Q1'24 Segment Highlights

Merchant Services

• Revenue increased 8.3% vs Q1'23, on strong demand across go-to-market channels
• Adjusted EBITDA margin expanded 150 bps, contributing to 16.3% growth year-over-year
• Continued investment toward high-quality customer service and evolving product enhancements and features
• Omnichannel capabilities enable client growth and increased efficiencies

B2B Payments

• Revenue decreased 7.7% vs Q1'23, as transition to SaaS offerings continues
• Adjusted EBITDA margins expanded 120 bps, via continued focus on lockbox efficiencies and expense management
• Customer wins and strong pipeline present rest-of- year opportunities

Data Solutions

• Revenue grew 34.5% vs Q1'23 on strong demand for data-driven-marketing offerings
• Adjusted EBITDA growth of 46.1% vs Q1'23, as margins expanded 200 bps
• Sequencing of in-year marketing campaign activity makes recurrence of Q1 YoY growth rates unlikely over balance of '24
• Continued strength across both core FI space and extended attractive growth verticals

Print

• Revenue declined 3.4% consistent with unit secular decline forecasts
• Check revenues roughly flat vs Q1'23
• Adjusted EBITDA margin of 30% reflecting continued COGS efficiency and other expense discipline

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Long-term Value Creation Algorithm

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