Slide 1: The Acquisition of EquiServe
The Acquisition of EquiServe A Briefing for Shareholders October 2004
Slide 2: Transaction Details
Transaction Details > Total value of US$292 million(based on share price and FX on basic terms date) > US$216 in cash plus > 29.6 million shares (slightly less than 5% of post transaction issued share capital) >» Cash element to be funded by debt > Gearing net debt to equity ratio approximately 45%
Slide 3: Company profile
Company profile > One of America’s largest transfer agents (share registrars) > Almost 19 million shareholder accounts > Close to 1300 clients > Over half of companies comprising Dow Jones Industrial Average > 1 million Employees in Share Plan business
Slide 4: Financial Impact
Financial Impact >» Expected to be EPS accretive in FY05 >» Targeted synergies estimated to deliver over US$55 million to EBITDA by Year 3 » EquiServe expects to close calendar year 2004 with $US300 million in revenue
Slide 5: Funding Strategy
Funding Strategy >» DST Systems, Inc to take equity > Debt funding > Initial short-term commitment > Arranging longer term solution > Likely to be US$ funded long-term debt
Slide 6: Strategic Impact
Strategic Impact > CPU will become a major player in US in both Share Registry and Plans >» Enhanced annuity revenue stream > Great opportunities to up-sell and cross-sell > Significant benefit for Document Services > Unique global presence to deliver benefit to US companies > Further strengthens Co
Slide 7: Strategic Impact (continued)
Strategic Impact (continued) > Now a major player in ADR processing market > Significant opportunities to win registry business of ADR issuers in their home market and deliver a consolidated global view of their shareholder base using CPU’s “PORTIS” technology > We can leverage off a common database
Slide 8: Post EquiServe Revenue Synergies
Post EquiServe Revenue Synergies » Cross-sell and up-sell Computershare products and services, including: > Proxy Solicitation > Document Services > Analytics >» ADR processing > Shareholder/Employee Communication
Slide 9: Post EquiServe Cost Synergies
Post EquiServe Cost Synergies > Information Technology (from 4 independent systems to 1) > Occupancy » Business Integration >» Administration > Marketing and Sales
Slide 10: Integration
Integration > Measured approach through detailed planning that has; » An established integration team > Identified key milestones and timescales > Agreed priorities > Integration team led by Penny Maclagan — Director and the Group’s Chief Information Officer >» Weare able to call on a wide range of