Computershare Limited Annual General Meeting

Transcription

1 MARKET ANNOUNCEMENT Computershare Limited ABN Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Australia PO Box 103 Abbotsford Victoria 3067 Australia Telephone Facsimile Date: 11 th November 2009 To: Subject: Australian Securities Exchange Computershare Limited Annual General Meeting Attached is the Chairman s address and CEO s presentation being delivered to the Annual General Meeting at 10.00am today, 11 th November For further information contact: Mr Darren Murphy Head of Treasury and Investor Relations Ph darren.murphy@computershare.com.au About Computershare Limited (CPU) Computershare (ASX:CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialise in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services. Founded in 1978, Computershare is renowned for its expertise in data management, high volume transaction processing, payments and stakeholder engagement. Many of the world s leading organisations use these core competencies to help maximise the value of relationships with their investors, employees, creditors, members and customers. Computershare is represented in all major financial markets and has over 10,000 employees worldwide. For more information, visit MARKET ANNOUNCEMENT

2 Annual General Meeting of Computershare Limited 11 November 2009

3 Annual General Meeting Chris Morris Executive Chairman Introduction 11 November 2009

4 Financial Performance Indicators * management adjusted results 3. Annual General Meeting of Computershare Limited.

5 CPU share price performance Jul 2008 Oct 2009 $12.00 ASX50 versus CPU $11.00 CPU: +20.6% $10.00 $9.00 ASX 50: -7.3% 73% $8.00 $7.00 $6.00 $5.00 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Computershare entered the ASX50 in September Annual General Meeting of Computershare Limited.

6 CPU share price performance Jan 2006 Oct 2009 ASX200 versus CPU $12.00 $11.00 $10.00 CPU: +57.9% $9.00 $8.00 $7.00 $6.00 ASX 200: +2% ASX 200 Industrials: -9.1% $5.00 $4.00 $3.00 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct Annual General Meeting of Computershare Limited.

7 CORPORATE RESPONSIBILITY Change a Life Project spend to date: Ethiopian Eye Clinic - Ethiopia 95,000 Phongsaly Health and Livehood - Laos 298,958 Highland Children's Education Project - Cambodia 250, Chad Farmer Regeneration Project - Chad 572,271 Sunrise Children's Village - Cambodia 590,173 Victims of Crime - South Africa 827,840 Cash at Bank 1,600,000 Total Raised 4,234, Annual General Meeting of Computershare Limited.

8 CORPORATE RESPONSIBILITY Change a Life Sunrise Children s Village Update Main project at present is supporting the building of third orphanage African Cycle Event September 2009 Five day cycle for the Mike Thomson Change a Life Trust 7. Annual General Meeting of Computershare Limited.

9 Annual General Meeting Stuart t Crosby Chief Executive Officer 11 November 2009

10 2009 IN REVIEW Revenue and Earnings (USD) Total operating revenues down 4% to $1,511.6 million Management EBITDA down 1% to $475.5 million Operating cash flows down marginally at $341.5 million Management net profit after OEI flat at $289.5 million Management EPS up marginally at cents 9. Annual General Meeting of Computershare Limited.

11 2009 IN REVIEW Operating Margin Total operating revenues - down 4% to $1,511.6 million Operating costs - down 6% to $1,035.9 million Management EBITDA margin - maintained over 30% * Management adjusted 10. Annual General Meeting of Computershare Limited.

12 2009 IN REVIEW Dividends (AUD) Interim dividend 11 cents 40% franked Final dividend 11 cents 50% franked 11. Annual General Meeting of Computershare Limited.

13 2009 IN REVIEW The story behind the numbers A flat result is a great outcome in the toughest market for decades (globally, if not in Australia) Corporate actions revenues held up well (increasing slightly on FY 09) Strong cost management helped close the revenue gap: Continued delivery of process efficiencies, mostly from technology Dynamic workforce management delivered savings as volumes decreased Never waste a crisis restructures, branch closures, salary freezes 12. Annual General Meeting of Computershare Limited.

14 2009 IN REVIEW The story behind the numbers Strong contributions from recent acquisitions - notably Computershare Voucher Services (formerly Busybees) and KCC (bankruptcy and class action administration) also helped Margin income held up in the short term better than expected as quality banks chased (and paid for) liquidity but this won t be sustained Currency volatility knocks reported results about but does not affect underlying business performance (which is what we manage) 13. Annual General Meeting of Computershare Limited.

15 COMPUTERSHARE TODAY Business As Usual Cost management continues to be a priority eg, FY 2009 pay freeze across the board But not cutting costs at the expense of services levels - evidenced by ever stronger third party service survey outcomes And continuing to invest in service and product improvements eg, custodian portal in Australia All of which combine to support excellent client retention 14. Annual General Meeting of Computershare Limited.

16 COMPUTERSHARE TODAY Organic Growth Strong operations also support great sales outcomes, eg: USA Frontier (registry), CIT (bankruptcy), American Funds (mutual fund proxy), Chemical Bank (communications services) Canada Ontario Financing Authority (registry) UK Schroders (registry), Resolution (takeover), ASDA (plans) Australia Myer (IPO), CBA (inbound communication services) Asia HK IPOs (since 1 July, we have handled 15 out of 26 IPOs, and over 88% of both applications and funds raised), many PRC plans (foreign listings) i 15. Annual General Meeting of Computershare Limited.

17 COMPUTERSHARE TODAY Balance Sheet Our strong balance sheet has let us concentrate on the business We are one of only a handful of companies of our size not to access equity markets during FY09 Our debt levels have remained comfortably below 2x EBITDA Half our debt is institutional fixed term The other half is term bank facilities: USD 200M 12 month facility surrendered mid year (not currently needed) USD 550M 3 year facility due to roll October 2010 early stages of renegotiation 16. Annual General Meeting of Computershare Limited.

18 COMPUTERSHARE TODAY Corporate Our own M&A activity continues deals since last AGM include: KCC (up to USD 145M) strongly counter-cyclical and great market share HBOS Plans (up to GBP 40M) takes us to a leading position in the UK Plans market and, more importantly, to a dominant position in the market for truly global plans National City y( (USD 16.2M+) US TA bolt-on I-nvestor (USD 12.4M) first presence in Denmark and Sweden 17. Annual General Meeting of Computershare Limited.

19 COMPUTERSHARE TODAY Corporate As always, we continue to monitor a range of M&A and other investment targets and opportunities: small, medium and large We assess opportunities against the same criteria we ve always used: Will we be any good at it? Does it add value to us and/or do we add value to it? Is it sensibly priced? Property we may move from operating leases to finance leases in a few of the premises we occupy, allowing us to take advantage of attractive valuations 18. Annual General Meeting of Computershare Limited.

20 LOOKING FORWARD Qualitative We continue to look for expansion (organically and by acquisition) in market-related areas as well as in less or counter cyclical areas India, Russia and China continue to represent strong growth potential Our cross border offering wins us a very high share of clients with global ambitions 8 of 10 names mentioned for the Shanghai international board are our clients We increasingly differentiate ourselves by delivering quality service and product innovation especially potent now as competitors cut deep (our IT spend remains ~10% of revenue) Private equity owners of competitors seem to be looking to cash out over next 12 to 24 months 19. Annual General Meeting of Computershare Limited.

21 LOOKING FORWARD Quantitative We said in August 2009 that we expected USD management earnings per share for financial year 2010 to be similar to financial year 2009 So far this year our profit is tracking slightly ahead of 2009, and we are increasingly confident of exceeding last year s performance, assuming equity, interest rate and FX market conditions remain broadly consistent with current levels for the rest of the financial year 20. Annual General Meeting of Computershare Limited.

22 OVERALL STRATEGY Unchanged Drive operations quality and efficiency through measurement, benchmarking and technology Improve our front office skills to protect and drive revenue Continue to seek acquisition and other growth opportunities where we can add value and enhance returns for our shareholders 21. Annual General Meeting of Computershare Limited.

23 CONTINUED DELIVERY AGAINST STRATEGY Delivery on the first 2 limbs (cost and revenue) has been a key factor in protecting our profits in the face of the GFC: operational productivity continues to improve across the globe revenue initiatives, especially in business as usual, continue to deliver (but mostly filling holes rather than growing) operational excellence puts us on top in independent d service surveys everywhere they re offered, protecting our pricing power and strengthening our client retention We continue to identify and execute on value accretive acquisitions eg, KCC, HBOS, National City, I-nvestor 22. Annual General Meeting of Computershare Limited.

24 Annual General Meeting Chris Morris Executive Chairman Questions