Details North Star Initiative to Drive Incremental $100 Million of Run-Rate Free Cash Flow by 2026

• Reaffirms 2023 outlook
• Provides 2024 guidance, signaling continuation of strong operating leverage
• Shares line of business strategies, including growth outlook through 2026
• Details execution plans via enterprise-wide North Star program

MINNEAPOLIS--Today in New York City, Deluxe, a Trusted Payments and Data company, is hosting its Investor Day featuring members of the company’s executive leadership team (ELT). Analysts and investors will join President and CEO Barry McCarthy and the ELT, both in-person and via live webcast, to learn more about the company’s plans to drive sustained profitable organic growth and increased free cash flow through 2026 via the recently-introduced North Star multi-year execution plan.

The formal presentations will begin at 8:30 am (EST) and will conclude at approximately 11:30 am (EST). A webcast of the live portion of the event and the accompanying presentation slides will be accessible at www.investors.deluxe.com. A replay of the webcast will be available following the event and accessible from the corporate website.

The company will reaffirm its existing guidance for 2023 and provide preliminary guidance for 2024, forecasting comparable adjusted EBITDA and comparable adjusted EPS growth to outpace revenue growth rates, consistent with both year-to-date Q3’23 results and its 2023 outlook, as follows (all figures are approximate):

Preliminary 2024 outlook:

Revenue of $2.14 to $2.18 billion
Adjusted EBITDA of $400 to $420 million
Adjusted EPS of $3.10 to $3.40
Free cash flow of $60 to $80 million

The company will also provide estimates for the results of operations for its businesses through 2026.

Information regarding the company's anticipated updated segment structure (effective starting in 2024) can be found in the company's Current Report on Form 8-K to be filed with the SEC on December 5, 2023, including furnished exhibits.

Note that the revenue outlook guidance for 2024 does not include revenue from the payroll business, which the company has decided to exit. Because customers are expected to convert to alternate providers throughout 2024, the company is not able to estimate this revenue. The company has also not reconciled the adjusted EBITDA, adjusted EBITDA margin, adjusted EPS or free cash flow outlook guidance to the directly comparable GAAP financial measures because the company does not provide outlook guidance for net income or the reconciling items between net income, adjusted net income and adjusted EBITDA, and certain of these reconciling items impact cash flows from operating activities. Because of the substantial uncertainty and variability surrounding certain of these forward-looking reconciling items, including asset impairment charges, restructuring and integration costs, gains and losses on sales of businesses and long-lived assets, and certain legal-related expenses, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measures is not available without unreasonable effort. The probable significance of certain of these reconciling items is high and, based on historical experience, could be material.