V1DIS Computershare Limited Half Year 215 Presentation Stuart Irving Mark Davis 11 February 215
Introduction CEO s Report 2
V1DIS Introduction Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER
Summary Statutory Introduction 1H15 Vs 2H14 Vs 1H14 (pcp) Earnings per share (post NCI) 2.79 cents Down 86.1% Down 88.9% Total Revenues $959.5m Down 1.1% Down 2.2% Total Expenses $91.9m Down.5% Up 13.% Statutory Net Profit (post NCI) $15.5m Down 86.2% Down 88.9% Reconciliation of Statutory NPAT to Management 1H15 Net profit after tax per statutory results $15.5m Management Adjustments (after tax) Amortisation 29. Acquisitions and Disposals 3.9 Other 112.2 Total Management Adjustments $145.1m Net Profit after tax per Management $16.6m Management results are used, along with other measures, to assess operating business performance. The Company believes that exclusion of certain items permits better analysis of the Group s performance on a comparative basis and provides a better measure of underlying operating performance. Management adjustments are made on the same basis as in prior years. Non-cash management adjustments include significant amortisation of identified intangible assets from businesses acquired in recent years, which will recur in subsequent years, asset disposals and other one off charges. Cash adjustments are predominantly expenditure on acquisition-related and other restructures, and will cease once the relevant acquisition integrations and restructures are complete. A full description of all management adjustments is included in the ASX Appendix 4D Note 2. The non-ifrs financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards. Note: all figures in this presentation are in USD M unless otherwise indicated. 4
Management Summary Introduction 1H 215 2H 214 v 2H 214 1H 214 v 1H 214 1H 215 @ 1H 214 exchange rates Management Earnings per share (post NCI) US 28.88 cents US 3.83 cents Down 6.3% US 29.41 cents Down 1.8% US 28.79 cents Total Operating Revenue $959.5 $1,45.7 Down 8.2% $976.9 Down 1.8% $966.1 Operating Costs $699. $771.7 Down 9.4% $79.2 Down 1.4% $74.6 Management Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) $259.3 $273.6 Down 5.2% $267. Down 2.9% $26. EBITDA Margin 27.% 26.2% Up 8 bps 27.3% Down 3 bps 26.9% Management Net Profit post NCI $16.6 $171.5 Down 6.3% $163.6 Down 1.8% $16.1 Cash Flow from Operations $147.7 $217.4 Down 32.1% $191.9 Down 23.% Free Cash Flow $137.4 $27.2 Down 33.7% $185.6 Down 25.9% Days Sales Outstanding 46 days 45 days Up 1 day 42 days Up 4 days Capital Expenditure $13. $9.5 Up 36.8% $1.3 Up 26.2% Net Debt to EBITDA ratio 2.28 times 2.13 times Up.15 times 2.26 times Up.2 times Interim Dividend AU 15 cents AU 15 cents Flat AU 14 cents Up 1 cent Interim Dividend franking amount 2% 2% Flat 2% Flat Note: all results are in USD M unless otherwise indicated. 5
Drivers Behind 1H15 Performance Introduction 6 Register Maintenance revenues were broadly flat compared to 1H14. There continues to be challenging conditions across many markets and lower shareholder activity has impacted the USA. Decreases have been largely offset by contributions from the Olympia Corporate & Shareholder Services acquisition in Canada and the Registrar & Transfer Company acquisition in USA. Revenues from Corporate Actions were lower compared to the prior two halves despite seeing some increase in corporate activity in Australia and Canada. With the integration of a number of recent acquisitions completed, the Employee Share Plans business continues to perform well despite the impact of lower transactional and margin income revenues. Average client balances were slightly higher compared to 1H14 and 2H14, but with the maturity of a large hedge position in Dec 13, margin income was adversely impacted across a range of business lines. Business Services revenue was largely flat on pcp. It was negatively impacted by weak market conditions in Bankruptcy Administration, the sale of Highlands Insurance and the loss of a key client in Utility Back Office Services. This was mostly offset by organic and inorganic growth in Loan Servicing and modest growth in Voucher Services and the Deposit Protection Schemes. The decrease in Stakeholder Relationship Management revenues was driven by the disposal of Pepper in June 14. The strong cost focus in all business lines continues.
Computershare Strengths Introduction Leading position in all major markets for equity investor record-keeping and employee stock plan administration based on: - sustainable advantages in technology, operations, domain knowledge and product development; - sustained quality excellence and operational efficiency; and - a joined-up global platform and seamless development and execution of crossborder solutions. Consolidating position across our traditional business lines and continuing to extract synergies from acquisitions. Capacity to create new growth opportunities by extending our technology enabled registry and processing capabilities into new business lines. More generally: - over 7% of revenues recurring in nature; - long track record of excellent cash realisation from operations; and - strong balance sheet and prudent gearing, with average maturity of debt facilities of 4.2 years. 7
Guidance Introduction In August we said that we anticipated Management EPS for the full year FY15 to be around 5% higher than FY14 which we confirmed at our AGM in November. This guidance assumed that foreign exchange and interest rates remained at the levels that prevailed at that time. While overall business performance continues to track to expectations, the recent material strengthening of the USD and weakening of interest rate markets has impacted our Management EPS guidance by more than 2 cents per share. Accordingly, we now expect Management EPS for the full year FY15 to be modestly higher than FY14. As usual, our assessment of the outlook assumes that equity, foreign exchange and interest rate markets remain at current levels and that anticipated corporate actions materialise as expected. It is also subject to the important notice on slide 64 regarding forward looking statements. 8
Introduction CEO s Report 9
V1DIS Mark Davis CHIEF FINANCIAL OFFICER
Group Performance 1H 215 2H 214 % variance to 2H 214 1H 214 % variance to 1H 214 Sales Revenue $954.4 $1,4.3 (8.3%) $971.1 (1.7%) Interest & Other Income $5.1 $5.4 (4.3%) $5.8 (11.5%) Total Management Revenue $959.5 $1,45.7 (8.2%) $976.9 (1.8%) Operating Costs $699. $771.7 9.4% $79.2 1.4% Share of Net (Profit)/Loss of Associates $1.2 $.5 $.7 Management EBITDA $259.3 $273.6 (5.2%) $267. (2.9%) Statutory NPAT $15.5 $112. (86.2%) $139.4 (88.9%) Management NPAT $16.6 $171.5 (6.3%) $163.6 (1.8%) Management EPS (US cents) 28.88 3.83 (6.3%) 29.41 (1.8%) Statutory EPS (US cents) 2.79 2.13 (86.2%) 25.7 (88.9%) Note: all results are in USD M unless otherwise indicated. 11
US Cents Management EPS 7 6 54.85 6.24 5 49.9 4 3 23.9 26. 26.87 27.98 3.83 29.41 28.88 2 1 212 213 214 215 1H 2H FY 12
USD M 1H15 Management NPAT Analysis 17 165 2.8 16 6.5.4 155 15 22.3 3.6.3 4.6 1.5 145 163.6 5.5 5.6 6.2 16.6 16.6 14 147.3 135 13 1H14 NPAT EBITDA - USA EBITDA - Canada EBITDA - ANZ EBITDA - UCIA EBITDA - ASIA EBITDA - CEU EBITDA - Tech & Corp Tax Expense Interest Expense Dep'n & Amort NCI 1H15 NPAT 13
Revenue & EBITDA USD M Operating Margin % Management Revenue & EBITDA Half Year Comparisons 1,2 6% 1, 1,37.3 987.6 1,37.5 976.9 1,45.7 959.5 5% 8 781.4 4% 6 27.1% 23.9% 24.4% 25.9% 27.3% 26.2% 27.% 3% 4 2% 2 211.5 247.5 241.4 268.4 267. 273.6 259.3 1% 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Revenue Management EBITDA Operating Margin % 14
Management Revenue Breakdown Revenue Stream 1H 215 2H 214 % variance to 2H 214 1H 214 % variance to 1H 214 Register Maintenance $387.3 $432.3 (1.4%) $389.5 (.6%) Corporate Actions $72.8 $77. (5.4%) $77.2 (5.7%) Business Services $245.8 $241. 2.% $246.9 (.4%) Stakeholder Relationship Mgt $21.1 $46.7 (54.9%) $28. (24.7%) Employee Share Plans $121.6 $134.6 (9.6%) $124.9 (2.6%) Communication Services $96.7 $1. (3.3%) $94.8 2.% Technology & Other Revenue $14.3 $14.1 1.1% $15.6 (8.3%) Total Revenue $959.5 $1,45.7 (8.2%) $976.9 (1.8%) Note: all results are in USD M unless otherwise indicated. 15
USD M USD M Management Revenue & EBITDA Regional Analysis Half Year Comparisons Revenue Breakdown EBITDA Breakdown 1,2 3 1, 1,37.3 11.5 987.6 97. 1,37.5 12.2 976.9 9. 1,45.7 99.5 959.5 96.7 25 211.5 247.5 5.8 241.4 45.1 268.4 267. 44.3 43.5 273.6 43.6 259.3 48.9 8 781.4 2 6 99.4 217.7 452.5 47.2 455.3 437.9 468. 49.3 15 53.6 43.2 9.2 77.6 12. 18. 14.2 9.3 4 2 45.1 62.9 41.1 61.8 4.6 66.7 46.9 147.9 156.9 15.4 16.2 15.8 177.1 166.7 57.1 54. 59.7 58.3 56.9 57. 59.2 214.1 2.7 232.2 199.7 2.7 177.4 18.7 1H12 2H12 1H13 2H13 1H14 2H14 1H15 1 5 3.1 4. 12.9.8 14.2 1.6 7.4 6.7 6.7 63.7 71.1 56.9 72.6 73. 18.1 19.4 2.4 15. 23.4 18.2 2.9 31.6 36. 27.2 3.6 18.4 17.6 24. 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Australia & NZ Asia UCIA Continental Europe USA Canada Australia & NZ Asia UCIA Continental Europe USA Canada 16
USD Million USD Billion Margin Income Analysis 2 16.7 18 18 16 15.4 13.6 14.4 14. 15.1 16 14 14 12 12.1 117.4 12. 14.9 15.8 12 1 1 8 89. 86.8 89.4 8 6 6 4 4 2 2 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Margin Income Average balances AVERAGE MARKET INTEREST RATES * Note 1: Some balances attract no interest or a set margin for Computershare. Note 2: Analysis includes Shareowner Services client funds from 2H12. * UK Bank of England MPC Rate; US Fed Funds Rate; Canada Bank of Canada Overnight Target Rate; Australia RBA Cash Rate. 1H12 2H12 1H13 2H13 1H14 2H14 1H15 UK.5%.5%.5%.5%.5%.5%.5% USA.25%.25%.25%.25%.25%.25%.25% Canada 1.% 1.% 1.% 1.% 1.% 1.% 1.% Australia 4.64% 4.5% 3.34% 2.93% 2.55% 2.5% 2.5% 17
1H15 Client Balances Interest Rate Exposure Average funds (USD 15.1b) held during 1H15 Exposure to interest rates 37% ($5.6b) Effective hedging: derivative / fixed rate 24% ($3.6b) No exposure 31% ($4.7b) Effective hedging: natural 8% ($1.2b) CPU had an average of USD15.1b of client funds under management during 1H15. For 31% ($4.7b) of the 1H15 average client funds under management, CPU had no exposure to interest rate movements either as a result of not earning margin income, or receiving a fixed spread on these funds. The remaining 69% ($1.4b) of funds were exposed to interest rate movements. For these funds: 24% had effective hedging in place (being either derivative or fixed rate deposits). 8% was naturally hedged against CPU s own floating rate debt. The remaining 37% was exposed to changes in interest rates. 18
1H15 Client Balances Interest Rate Exposure and Currency Exposed Funds by Currency (1H15 Average Balances) Average exposed funds balance prior to hedging Average exposed funds balance net of hedging Other 4% ($.4b) AUD 3% ($.3b) CAD 16% ($1.7b) Other 5% ($.3b) AUD 5% ($.3b) CAD 26% ($1.4b) USD 4% ($4.2b) USD 37% ($2.1b) GBP 37% ($3.8b) GBP 27% ($1.5b) US$1.4b (US$15.1b x 69%) US$5.6b (US$15.1b x 37%) 19
USD M Client Balances Fixed and Floating Term Deposits Including Fixed Rate Derivatives 7, Floating Rate Deposits Fixed Rate Deposits Derivatives 6, 5, 4, 3, 2, 1, Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 2
USD M Total Management Operating Costs Half Year Comparisons 9 8 7 6 569.9 79.2 196.8 746.3 768.9 168.3 196.2 79.2 164.9 771.6 193.4 699. 165. 5 132. 4 3 593.4 577.9 572.7 544.3 578.3 534. 2 437.9 1 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Controllable Costs (excl COS) Cost of Sales (COS) 21
36.9 2.7 44.3 39.2 37.3 37.1 41.4 38.3 6.6 47.7 3.3 37.4 43.3 34.5 89.9 132. 122.6 129.4 131.9 117.8 123.1 118.8 168.3 164.9 165. USD M 196.8 196.2 193.4 29.4 365.9 361.6 373.2 352.1 342.4 37.4 Management Operating Costs Half Year Comparisons 45 4 35 3 25 2 15 1 5 Cost of Sales Personnel Occupancy Other Direct Technology 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Note: Corporate operating costs have been allocated and reported under the five main cost categories cost of sales, personnel, occupancy, other direct and technology. Technology costs includes personnel, occupancy and other direct costs attributable to technology services. 22
USD M Technology costs as a % of revenue Technology Costs Continued Investment to Maintain Strategic Advantage 16 14 12 1 11.5% 89.9 2.9 11.8% 122.6 7.2 45.8 13.1% 12.7% 129.4 131.9 5.7 6.2 32.4 44.2 12.1% 11.8% 123.1 117.8 4.9 8.9 31.6 3.2 12.4% 118.8 5.6 32.2 14% 12% 1% 8% 8 3.5 6% 6 4 21.8 46.5 48.4 56.6 44.3 46.8 39.8 4% 2 34.7 23. 31.2 36.7 34.4 39.8 41.2 2% 1H12 2H12 1H13 2H13 1H14 2H14 1H15 % Development Infrastructure Maintenance Admin Technology costs as a % of revenue 23
USD M 1H15 Operating Cash Flow Analysis 25 2 15 61.1 1.2.5 6.3. 1 191.9 147.7 5 Net Operating Cash Flow 1H14 Net Receipts & Payments Loan Servicing Advances Dividends & Interest Received Interest Paid & Other Finance Costs Income Taxes Paid Net Operating Cash Flow 1H15 24
USD M Capital Expenditure vs. Depreciation 4 37.8.9 35 3 25 24.3 23.7 23.9 25.6 1.6 2 3.2 3.9 2. 5.6 15 12.9 3.8 13. 1 5 17.2 2.1 11.1 2.7 6.4 14.6 1.3.3 1.5.9 7.6 9.5.6 1.3 2.6 4.9.6.9 1.3 1.2 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Information Technology Communication Services Facilities Occupancy Other Depreciation 25
USD M Free Cash Flow 25 217.4 2 188.2 2.8 191.9 15 146.4 133.3 147.7 1 5 3.1 23.6 2.2 1. 6.3 1.2 1.3 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Operating Cash Flows Cash outlay on Capital Expenditure Note: Excludes assets purchased through finance leases which are not cash outlays. 26
Balance Sheet at 31 December 214 Dec-14 Jun-14 Variance USD M USD M Dec-14 to Jun-14 Current Assets $1,57.9 $1,117.5 (5.3%) Non Current Assets $2,569.9 $2,69.7 (4.5%) Total Assets $3,627.9 $3,88.2 (4.7%) Current Liabilities $745.4 $834.6 (1.7%) Non Current Liabilities $1,76.1 $1,76.4 3.1% See CPU interim Statements Appendix 4D as at 31 December 214 for full details. Total Assets, Liabilities and Equity are impacted by the significant strengthening of the USD against other major currencies and the impairment of Voucher Services resulted in lower net asset balances. Total Liabilities $2,55.5 $2,541. (1.4%) Total Equity $1,122.4 $1,267.2 (11.4%) 27
Times Times Key Ratios EBITDA Interest Coverage Net Indebtedness to EBITDA 14 3.5 12 3. 1 2.5 8 2. 6 4 13.2 9.5 7.3 7.7 8.4 8.6 1.2 1.5 1. 2.92 2.86 2.72 2.47 2.26 2.13 2.28 2.5 1H12 2H12 1H13 2H13 1H14 2H14 1H15. 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Dec-14 Jun-14 Variance USD M USD M Dec-14 to Jun-14 Interest Bearing Liabilities $1,695.3 $1,659.3 2.2% Less Cash ($482.)* ($59.)* (5.3%) Net Debt $1,213.3 $1,15.2 5.5% Management EBITDA $532.9 $54.6 (1.4%) Net Indebtedness to EBITDA 2.28 times 2.13 times Up.15 times * Cash includes cash that is classified as an asset held for sale. 28
USD M Debt Facility Maturity Profile Maturity Dates USD M Private Debt Committed Bank Placement Drawn Debt Facilities Debt Facility Facility FY15 Mar-15 124.5 124.5 124.5 FY16 Dec-15 93.3 15. FY17 Mar-17 21. 21. 21. FY18 Jul-17 434.3 45. 45. Feb-18 4. 4. 4. FY19 Jul-18 235. 235. 235. Feb-19 7. 7. 7. FY2 Jul-19 176. 45. 45. FY22 Feb-22 22. 22. 22. FY24 Feb-24 22. 22. 22. 5. 45. 45. 45. 434.3 TOTAL 1,634.1 1,98.5 9. 93.5 4. 35. 3. 25. 235. 22. 22. 2. 15. 124.5 15. 176. 1. 5. 93.3 21. 4. 7.. FY15 FY16 FY17 FY18 FY19 FY2 FY21 FY22 FY23 FY24 SLS Advance Facility drawn SLS Advance Facility USPP Syndicated Debt drawn Syndicated Debt Facility Note: Average debt facility maturity is 4.2 years as at 31 Dec 14. 29
No. Of Days Working Capital Management Days sales outstanding 5 45 42 43 48 45 42 45 46 4 35 3 25 2 15 1 5 1H12 2H12 1H13 2H13 1H14 2H14 1H15 3
Return On Invested Capital vs. WACC and Return on Equity 3% 25.8% 28.1% 27.24% 25% 22.34% 2% 15% 14.37% 15.84% 16.38% 16.65% 1% 8.61% 8.97% 9.51% 9.33% 5% % FY12 FY13 FY14 1H15 WACC ROIC ROE ROIC = (Mgt EBITDA less Depreciation less Income Tax expense)/(total Debt add Total Equity less Cash). 31
Equity Management Interim Dividend of 15 cents (AU) EPS - Statutory US 2.79 cents EPS - Management US 28.88 cents Interim Dividend AU 15 cents (2% franked) Current Yield* 2.6% * Based on 12 month dividend and share price of AU$11.65 (close 9th Feb 215). 32
Summary Final Remarks Despite the impact of previously flagged headwinds and the ongoing challenging trading conditions, Group earnings were only marginally lower than pcp. Ongoing disciplined cost management continues to support results with new cost control measures being initiated during the period. Recent acquisitions continue to progress positively. Maintained conservative balance sheet. New syndicated debt facility provides better terms and along with the DRP, flexibility for our funding needs. Interim dividend up 1 cent against 1H14 to AU 15 cents per share, franked to 2%. 33
Introduction CEO s Report 34
V1DIS CEO s Report Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER CEO PRESENTATION
Group Strategy and Priorities CEO s Report Our group strategy remains as it has been: - Continue to seek acquisition and other growth opportunities where we can add value and enhance returns for our shareholders. - Improve our front office skills to protect and drive revenue. - Continue to drive operations quality and efficiency through measurement, benchmarking and technology. We continue to prioritise our focus on those areas that best assure our future by: Protecting profitability in mature businesses via new revenue and cost initiatives Investing in growth initiatives for businesses that offer that potential Evaluating new business opportunities but with high investment hurdle thresholds In regards to our asset portfolio, we recently concluded our prioritised asset clean up initiative, we continue to assess robustly the performance, future opportunities and prospects of all operating assets. 36
Delivery against strategy and priorities CEO s Report Recent, albeit modest, acquisitions have been fully integrated and the synergies expected have been achieved along with high levels of customer retention. Limited opportunities in our traditional registry space remain. We have expanded our Loan Servicing operations into the UK, and continue to invest in the US business s operational and technology capabilities to meet new regulatory requirements and position us for growth. We continue to see opportunities to deploy capital in performing and non performing MSRs. While the competitive landscape remains challenging, we continue to achieve high levels of customer satisfaction and client retention and our investments in integrated products helped us win a number of new clients across the group. We remain cost disciplined, adding volume to our Global Service model and have commenced a program in the US to rationalise property which whilst adding cost for this result will give us benefits over the coming years. There is a renewed focus on acquisition opportunities that strongly align with our core competencies. We continue to keep a watching brief on the possible disposal of the ASIC registry asset. As with any opportunity, our disciplined approach to acquisitions and return hurdles remain key. 37
USA Update We continue to achieve strong client retention and satisfaction in Transfer Agency and Employee Share Plans; including clients of the recently acquired R&T business. Continued low interest rates and a slower-than-anticipated rebound in completed M&A activity, especially for large deals, has impacted Corporate Actions performance. In addition to the loss of forced placed insurance income (we sold the business), the Loan Servicing business was also affected by a delay in onboarding recent wins and the general uncertainty surrounding the regulatory environment. Ongoing investment in quality measureable processes and our compliance framework should position us well for growth. The Class Action business has been successful in winning larger mandates, however the weakness in Bankruptcy persisted due to continued low levels of filings. We have commenced the execution of a multi year property rationalisation project and established facilities in Louisville, KY, which will have a positive impact on costs in coming years. CEO s Report 38
Canada Update CEO s Report IPO activity remains well below historical levels but we are seeing an increase in new Exchange Traded Fund issuances. Client retention continues to be strong. Expansion of offshore operational activities (both transaction types and clients covered) continues. Significant M&A activity in the Canadian market has lead to a substantial improvement in 1H15 revenue. The Corporate Trust business saw strong activity in the Mortgage Backed Securities and Oil & Gas Royalty areas but profitability was impacted by lower yields on client balances. While transactional activity has softened somewhat, Employee Share Plans was successful in winning a significant mandate to administer the North American ESP for a very large multinational Canadian company in the period. We completed the integration of our recent Olympia Corporate and Shareholder Services business acquisition for Transfer Agency and Corporate Trust and continue to progress on the integration of the SG Vestia Systems acquisition in our Employee Share Plans space. 39
UCIA Update CEO s Report The integration of the Morgan Stanley Global Stock Plan business was completed successfully and on schedule in December 214. Transactional activity in Employee Share Plans is lower due to increased equity market volatility and fewer large vesting events occurring. However, the underlying volume and launch of new plans remains positive. An operational restructure now sees some revenue within the CEU region. The acquisition of Homeloan Management Limited (HML) received FCA regulatory approval and was completed in November 214. Focus is now on integration to reduce costs and execute on opportunities to grow the business. There was a slowdown in corporate actions and IPO activity in 1H15. However other market activity remained positive in respect of new Depositary Interest issuance and Exchange Traded Fund activity in Ireland. Continuing growth in the Deposit Protection Scheme deposit pool reflects a strong UK rental housing sector. It is expected that the Voucher Services business will move into run off mode from 216. 4
Continental Europe Update CEO s Report Agreed to purchase the issuer services business of Istifid S.p.A, the 3rd largest provider in the Italian market, to further strengthen our market leading position. Despite political and competitive pressure in Russia increasing we had a strong 2nd quarter, mainly driven by an increasing number of corporate actions by our key clients. Executed an agreement to sell VEM Aktienbank in Germany. We expect to obtain regulatory approval and complete the transaction before 3 June 215. The Issuer Services businesses in the Nordic region continues to expand market share, especially in the AGM space. A new management structure was introduced after completing the integration of the Morgan Stanley Global Stock Plan business to improve service quality to our Continental European clients. 41
Asia Update CEO s Report The Investor Service business has seen continued growth in new clients from IPOs in recent periods. The Employee Share Plans business continued to show strong growth. Our Shareholder Analytics and Proxy business in China gained new clients and was helped by the increased level of corporate actions. The Indian Registry business remained steady while the Funds business benefited from a stronger stock market as revenues are linked to AUM. We are investing in our Hong Kong operations to provide further scale and cost benefit and improved alignment with Computershare s global standards. 42
Australia & New Zealand Update CEO s Report The Australian Investor Services business continues to hold its market leading position. In addition to retaining a number of important clients, 1H15 saw some significant new registry client wins including QBE. Computershare s unique ability to provide an integrated service offering was instrumental in the winning and successful execution of the A$5.7billion Medibank IPO. The NZ Investor Services business continues to perform well albeit the activity associated with the Government asset IPOs has now passed. A highlight of the past 6 months has been Communication Services developing it s inbound capabilities in the superannuation arena. Our market leading Employee Share Plans business was instrumental in helping secure new client wins in both registry and employee plans service. Georgeson continues to win its market share albeit proxy solicitation activity remains slow. In the first 6 months following the loss of APG (takeover by AGL) Serviceworks focus has been on right sizing its cost base. 43
V1DIS Computershare Limited Half Year 215 Presentation Stuart Irving Mark Davis 11 February 215
Appendix: Half Year 215 Presentation 11 February 215 45
Appendix 1: Group Comparisons Group Comparisons 46
Management Revenue Half Year Comparisons 1% 9% 3% 2% 2% 1% 2% 1% 1% 12% 9% 1% 1% 1% 1% 1% 8% 7% 11% 4% 11% 11% 12% 13% 13% 13% 5% 3% 4% 3% 4% 2% 6% 19% 23% 24% 24% 25% 23% 26% 5% 4% 9% 9% 9% 7% 8% 7% 8% 3% 2% 43% 42% 4% 41% 4% 41% 4% 1% % 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 47
US D M Management Revenue by Product Half Year Comparisons 1,2 1, 8 781.4 21.5 9.3 1,37.3 17.2 91.7 112.3 52.2 987.6 16.3 98.3 112.5 31.2 1,37.5 14.5 99.8 124.6 45.4 976.9 15.6 94.8 124.9 28. 1,45.7 14.1 1. 134.6 46.7 959.5 14.3 96.7 121.6 21.1 6 85. 34.6 234.7 241.8 247.3 246.9 241. 245.8 4 148.3 67.4 88.7 92.8 76.6 77.2 77. 72.8 2 334.2 44.6 394.7 429.4 389.5 432.3 387.3 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 48
34.6 52.2 31.2 45.4 28. 46.7 21.1 21.5 17.2 16.3 14.5 15.6 14.1 14.3 67.4 88.7 92.8 76.6 77.2 77. 72.8 148.3 85. 112.3 112.5 124.6 124.9 134.6 121.6 9.3 91.7 98.3 99.8 94.8 1. 96.7 USD M 234.7 241.8 247.3 246.9 241. 245.8 334.2 44.6 394.7 429.4 389.5 432.3 387.3 Management Revenue Half Year Comparisons 5 45 4 35 3 25 2 15 1 5 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 1H12 2H12 1H13 2H13 1H14 2H14 1H15 49
6.9 3.8 1.6.5.7 1.1 1.5 1.6.5 18.5 2. 14.3 11.2 6.5 8.7 8.7. 3.8 1.7 16.4 2.9 3.1.3 1.6 2.3 5.8 1.2 3.2 21.6 28.5 13.6 15.6 32.3 37.4 32.2 49.4 52.3 54.3 64.4 62.9 USD M 121.4 189.4 1H15 Management Revenue Regional Analysis 25 2 15 1 5 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue ANZ Asia UCIA CEU USA Canada 5
Tax Rate % Effective Tax Rate Statutory & Management 7% 63.3% 6% 5% 4% The Group s effective statutory tax rate is 63.3% for the half year ended 31 December 214. The Group s effective statutory tax rate for the comparative prior period was 19.4%. 3% 2% 22.3% 25.1% 16.6% 22.6% 22.4% 23.% 21.8% The increase in the group s Statutory ETR is primarily driven by the asset impairment of US$19.5m, which is not tax deductible. 1% % FY12 FY13 FY14 1H15 Statutory Management 51
Appendix 2: Country Summaries Country Summaries 52
1H12 2H12 1H13 2H13 1H14 2H14 1H15 1.8.9 1.4.8.9 1.1.8 4.4 2.5 3.2 1.9 3.8.4 3.3 17.2 16.3 18.3 14.1 16.1 16.7 18.9 2.4 11.8 12.6 13.7 12.9 13.8 12.1 12.4 22.1 AUD M AUD M 35.3 38.8 39.2 37. 35.8 53. 56.5 55.7 187.9 189. 188.5 198.1 193.5 63.9 64.5 218.3 211.3 68.2 66.2 67.8 71. 71.9 71.5 69.3 69.7 74.7 Australia Half Year Comparison Total Revenue Revenue Breakdown 25 8 7 2 6 15 5 4 1 3 2 5 1 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 1H12 2H12 1H13 2H13 1H14 2H14 1H15 53
1H12 2H12 1H13 2H13 1H14 2H14 1H15 3.3 3.8 2.9 4.3... 4.4 1.3 4.5 2. 4.5 4.6 8.6 46.2 4.3 36.5 5.6 46. 48.1 16. 16.1 2.8 28. 31.3 36.1 42.1 72.5 HKD M HKD M 226.8 225. 231.7 253.9 247.6 264.6 282.6 157.7 159.4 156.6 16.8 161.2 177.9 183.8 Hong Kong Half Year Comparison Total Revenue Revenue Breakdown 4 2 35 18 16 3 14 25 12 2 1 15 8 6 1 4 5 2 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans 1H12 2H12 1H13 2H13 1H14 2H14 1H15 54
1H12 2H12 1H13 2H13 1H14 2H14 1H15 7.4 29.9 18.2 55.4 68.5 41.5 11.4 33.6 292.7 26. 292.9 356.1 336. 334.8 INR M INR M 66. 632.5 723. 998. 1,18.5 1,127.5 895.8 87.1 94. 1,255.4 1,299.1 1,246.3 1,451.3 1,14.5 India Half Year Comparison Total Revenue 1,4 Revenue Breakdown 1,6 1,4 1,2 1,2 1, 1, 8 8 6 6 4 4 2 2 Register Maintenance Corporate Actions Business Services 55 1H12 2H12 1H13 2H13 1H14 2H14 1H15
1H12 2H12 1H13 2H13 1H14 2H14 1H15 6.8 8.9 9.7 7.8 5.2 6.3 5.9 5.6 5.1 5.8 17.9 45.2 48.8 37.9 37.9 31.3 28.5 4. 19.4 19.8 18.8 15.6 13.3 17.6 13.4 18. 16.4 34.4 34.1 33.2 31.6 3.6 34.3 35. 38.8 32.2 217.7 USD M USD M 112.5 112. 17. 116.7 131.1 131.2 121.4 47.2 49.3 452.5 455.2 437.9 468.1 215.1 184.9 28.8 196. 21.4 189.4 United States Half Year Comparison Total Revenue Revenue Breakdown 6 25 5 2 4 15 3 1 2 1 5 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 1H12 2H12 1H13 2H13 1H14 2H14 1H15 56
1H12 2H12 1H13 2H13 1H14 2H14 1H15 1.1 2.2 1. 1..3.5.6 2. 2.3 2.6 2.7 2.3 3.1 3.2 1. 1.3 1.4 1.4 1.5 1.4 1.4 12.3 11. 1.6 9.5 8.7 9. 7.6 8.6 7.8 8.5 8.2 9.5 9.6 15. CAD M CAD M 32.7 34.8 35.6 98.6 96.9 94. 37.8 36.8 38.1 38.7 37.2 4.2 39. 41.3 13.5 11.2 18.8 16.6 43.2 46.7 46.3 Canada Half Year Comparison Total Revenue Revenue Breakdown 12 5 45 1 4 8 35 3 6 25 2 4 15 2 1 5 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 1H12 2H12 1H13 2H13 1H14 2H14 1H15 57
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2.5 2.8 2.3 2.4 1.5 1.8 1.4 2.2.6.9.6 1.2.7 1.1 1.6 1.4 1.7 1.5 1.9 2.3 2. 2.1 1.3 1.3 1.3 2..8 6.7 GBP M GBP M 19.7 21. 2.1 21.5 2.5 2.3 2.7 19.2 2.5 2.5 17.9 17.6 24. 76.1 28.7 82.5 79.8 82.4 31.9 31.3 87.8 89.2 33.6 33.7 94. 39.6 39.1 4.6 United Kingdom & Channel Islands Half Year Comparison Total Revenue Revenue Breakdown 45 4 1 9 35 8 3 7 25 6 5 2 4 15 3 2 1 1 5 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 1H12 2H12 1H13 2H13 1H14 2H14 1H15 58
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2.6 3.8 3.5 5.4 3.5 6. 4.8 2.3 2.6 2.9 3.4....5.4.3.3.2.3.4 7.2 7.5 7.8 7.1 7.2 7.4 7.8 RAND M RAND M 13.3 125.4 138. 142.5 135.8 144.5 144. 117.7 123.6 128.1 128.3 124.9 13.3 112.4 South Africa Half Year Comparison Total Revenue Revenue Breakdown 2 14 18 12 16 14 1 12 8 1 8 6 6 4 4 2 2 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans 1H12 2H12 1H13 2H13 1H14 2H14 1H15 59
1H12 2H12 1H13 2H13 1H14 2H14 1H15.3.4.3.4.....1.2.1.1.1.1.5 1.2.8.8 1.1.9.7 1.4 1.5 1.2 1.2 1.7 1.7 2.1 2.3 2.3 2.3 2.2 2.1 2. 2.2 2.9 3.5 3.4 4.8 12.9 6.2 EUR M 14.8 16. 15.4 EUR M 7.4 8.4 8.4 8.3 8.2 9.5 1.4 25.7 11.6 27.1 12.4 27.7 Germany Half Year Comparison Total Revenue Revenue Breakdown 3 14 25 12 1 2 8 15 6 1 4 5 2 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue 6 1H12 2H12 1H13 2H13 1H14 2H14 1H15
1H12 2H12 1H13 2H13 1H14 2H14 1H15.... 2.9 25. 23.3 2.5 17.7 18.7 19.7 17.9 RUB M RUB M 363.4 373.8 361.2 34.1 353.3 342.5 418.5 393.5 421.2 43.5 45.3 43.6 532.2 511.5 Russia Half Year Comparison Total Revenue Revenue Breakdown 6 6 5 5 4 4 3 3 2 2 1 1 Register Maintenance Business Services Employee Share Plans 1H12 2H12 1H13 2H13 1H14 2H14 1H15 61
Appendix 3: Assumptions Assumptions 62
Assumptions: Exchange Rates Average exchange rates used to translate profit and loss to US dollars 1H15 1H14 USD 1. 1. AUD 1.1921 1.8746 HKD 7.75365 7.75463 NZD 1.22548 1.24547 INR 6.96397 62.31423 CAD 1.125 1.4514 GBP.6963.63533 EUR.772.74692 RAND 1.83311 1.615 RUB 39.34545 32.74783 AED 3.67298 3.67316 DKK 5.73727 5.575 SEK 7.111 6.5466 63
Important Notice Forward looking statements This announcement may include 'forward-looking statements'. Such statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'outlook', 'guidance' and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forward-looking statements. Such statements are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Computershare. Actual results, performance or achievements may vary materially from any forward-looking statements. Readers are cautioned not to place undue reliance on forwardlooking statements, which are current only as at the date of this announcement. 64