Slide 1: Financial Results for the Half Year Ended 31 December 2014
For personal use only COMPUTERSHARE LIMITED (ASX:CPU) FINANCIAL RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014 11 February 2015 NOTE: All figures (including comparatives) are presented in US Dollars unless otherwise stated. The non-IFRS financial information contained within this document has not
Slide 2: Market Announcement
MARKET ANNOUNCEMENT Melbourne, 11 February 2015 – Computershare Limited (ASX:CPU) today reported Statutory Basic Earnings per Share (EPS) of 2.79 cents for the six months ended 31 December 2014, a decrease of 88.9% on the prior corresponding period (pcp – being the six months ended 31 December 2013)
Slide 3: Reconciliation of Statutory Results to Management Results
MARKET ANNOUNCEMENT Reconciliation of Statutory Results to Management Results 1H15 USD 000’s Net profit after tax per Statutory Results 15,498 Management Adjustments (after tax) For personal use only Amortisation Intangible assets amortisation 29,030 Acquisitions and disposals Restructuring provisio
Slide 4: Market Announcement: Other adjustments and Commentary
MARKET ANNOUNCEMENT Other An impairment charge of $109.5 million was booked against the carrying value of goodwill related to the Voucher Services business. For further information refer to note 11 in the 4D as well as the Company’s market announcement dated 30 July 2014 and note 34 of the 2014 An
Slide 5: Market Announcement: Outlook and EPS Performance
MARKET ANNOUNCEMENT “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 overal
Slide 6: Regional Results Commentary
MARKET ANNOUNCEMENT Continental Europe Revenues in the region grew 4.0% on pcp to $47.0 million and EBITDA increased 73.3% to $0.7 million. A strong performance by the Russian business, growth in the Italian business plus the reclassification of some revenue in the Employee Share Plans business cont
Slide 7: Balance Sheet Overview
MARKET ANNOUNCEMENT Balance Sheet Overview Total assets decreased $180.3 million to $3,627.9 million at 31 December 2014 and Shareholders’ equity decreased $144.8 million to $1,122.4 million, driven largely by the impairment charge against Computershare Voucher Services. Net borrowings increased $56
Slide 8: Outlook for Financial Year 2015
MARKET ANNOUNCEMENT Outlook for Financial Year 2015 In August the Company said it anticipated Management EPS for the full year FY15 to be around 5% higher than FY14 which was confirmed at the AGM in November. This guidance assumed that foreign exchange and interest rates remained at the levels that
Slide 9: Half Year Results 2015 Presentation
Computershare Limited For personal use only Half Year Results 2015 Presentation Stuart Irving Mark Davis 11 February 2015 V1DIS
Slide 10: CEO's Introduction / Financial Results Report
For personal use only Financial CEO’s Introduction Results Report 2
Slide 11: Introduction
Introduction For personal use only Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER V1DIS
Slide 12: Results Summary
Results Summary Statutory Results Introduction For personal use only Management results are used, along with other measures, 1H15 Vs 2H14 Vs 1H14 (pcp) to assess operating business performance. The Company Earnings per share (post NCI) 2.79 cents Down 86.1% Down 88.9% believes that exclusion of cert
Slide 13: Management Results Summary
Management Results Summary Introduction For personal use only 1H 2015 @ 1H 2014 1H 2015 2H 2014 v 2H 2014 1H 2014 v 1H 2014 exchange rates US 28.88 US 30.83 US 29.41 US 28.79 Management Earnings per share (post NCI) cents cents Down 6.3% cents Down 1.8% cents Total Operating Revenue $959.5 $1,045.7
Slide 14: Drivers Behind 1H15 Financial Performance
Drivers Behind 1H15 Financial Performance Introduction › Register Maintenance revenues were broadly flat compared to 1H14. There continues to be challenging conditions across many markets and lower shareholder activity has For personal use only impacted the USA. Decreases have been largely offset by
Slide 15: Computershare Strengths
Computershare Strengths Introduction › Leading position in all major markets for equity investor record-keeping and employee For personal use only stock plan administration based on: - sustainable advantages in technology, operations, domain knowledge and product development; - sustained quality exc
Slide 16: Guidance
Guidance Introduction For personal use only › 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 a
Slide 17: CEO's Introduction / Financial Results Report
For personal use only Financial CEO’s Introduction Results Report 9
Slide 18: Financial Results
Financial Results For personal use only Mark Davis CHIEF FINANCIAL OFFICER V1DIS
Slide 19: Group Financial Performance
Group Financial Performance Financial Results For personal use only % variance to % variance to 1H 2015 2H 2014 1H 2014 2H 2014 1H 2014 Sales Revenue $954.4 $1,040.3 (8.3%) $971.1 (1.7%) Interest & Other Income $5.1 $5.4 (4.3%) $5.8 (11.5%) Total Management Revenue $959.5 $1,045.7 (8.2%) $976.9 (1.8
Slide 20: Management EPS
Management EPS Financial Results For personal use only 70 60.24 60 54.85 49.09 50 40 US Cents 30.83 29.41 28.88 30 26.87 27.98 26.00 23.09 20 10 0 2012 2013 2014 2015 1H 2H FY 12
Slide 21: 1H15 Management NPAT Analysis
1H15 Management NPAT Analysis Financial Results 170 For personal use only 165 2.8 6.5 0.4 160 1.5 155 4.6 22.3 0.3 150 USD M 3.6 163.6 145 160.6 160.6 5.5 5.6 6.2 140 147.3 135 130 1H14 EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - Tax Interest Dep'n & NCI 1H15 NPAT USA Canada ANZ U
Slide 22: Management Revenue & EBITDA
Management Revenue & EBITDA Half Year Comparisons Financial Results 1,200 60% For personal use only 1,037.3 1,037.5 1,045.7 987.6 976.9 1,000 959.5 50% 781.4 Revenue & EBITDA USD M 800 40% Operating Margin % 600 27.3% 30% 27.1% 26.2% 27.0% 25.9% 23.9% 24.4% 400 20% 268.4 267.0 273.6 259.3 247.5 241.
Slide 23: Management Revenue Breakdown
Management Revenue Breakdown Financial Results For personal use only % variance to % variance to Revenue Stream 1H 2015 2H 2014 1H 2014 2H 2014 1H 2014 Register Maintenance $387.3 $432.3 (10.4%) $389.5 (0.6%) Corporate Actions $72.8 $77.0 (5.4%) $77.2 (5.7%) Business Services $245.8 $241.0 2.0% $246
Slide 24: Management Revenue & EBITDA – Regional Analysis
Management Revenue & EBITDA – Regional Analysis Half Year Comparisons Financial Results Revenue Breakdown EBITDA Breakdown For personal use only 1,200 300 273.6 268.4 267.0 1,037.3 1,037.5 1,045.7 259.3 987.6 976.9 247.5 1,000 99.5 959.5 250 241.4 43.6 110.5 102.2 44.3 43.5 97.0 90.0 48.9 96.7 211.5
Slide 25: Margin Income Analysis
Margin Income Analysis Financial Results 200 18 16.7 For personal use only 180 15.4 15.1 16 14.4 14.0 160 13.6 14 140 12.1 12 117.4 120.0 120 USD Billion 104.9 105.8 10 USD Million 100 89.0 86.8 89.4 8 80 6 60 4 40 20 2 0 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Margin Income Average balances AVERAGE MA
Slide 26: 1H15 Client Balances: Interest Rate Exposure
1H15 Client Balances Interest Rate Exposure Financial Results For personal use only Average funds (USD 15.1b) held during 1H15 CPU had an average of USD15.1b of client Exposure to funds under management during 1H15. interest rates 37% ($5.6b) No exposure For 31% ($4.7b) of the 1H15 average client fu
Slide 27: Client Balances: Interest Rate Exposure and Currency
1H15 Client Balances Interest Rate Exposure and Currency Financial Results For personal use only Exposed Funds by Currency (1H15 Average Balances) Average exposed funds Average exposed funds balance prior to hedging balance net of hedging Other AUD AUD Other 4% ($0.4b) 3% ($0.3b) 5% ($0.3b) 5% ($0.3
Slide 28: Client Balances: Fixed and Floating Term Deposits
Client Balances Fixed and Floating Term Deposits Financial Results Including Fixed Rate Derivatives For personal use only 7,000 Floating Rate Deposits Fixed Rate Deposits Derivatives 6,000 5,000 4,000 USD M 3,000 2,000 1,000 0 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 20
Slide 29: Total Management Operating Costs
Total Management Operating Costs Half Year Comparisons Financial Results For personal use only 900 790.2 800 768.9 771.6 746.3 709.2 699.0 700 196.8 168.3 196.2 193.4 164.9 165.0 600 569.9 500 132.0 USD M 400 300 593.4 577.9 578.3 572.7 544.3 534.0 437.9 200 100 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15
Slide 30: Management Operating Costs
Management Operating Costs Half Year Comparisons Financial Results For personal use only 450 373.2 370.4 365.9 361.6 352.1 400 342.4 350 290.4 300 USD M 250 196.8 196.2 193.4 168.3 165.0 164.9 200 132.0 131.9 129.4 123.1 122.6 118.8 117.8 150 89.9 100 60.6 47.7 44.3 43.3 41.4 39.2 38.3 37.4 37.3 37.
Slide 31: Technology Costs
Technology Costs Continued Investment to Maintain Strategic Advantage Financial Results 14% For personal use only 13.1% 160 12.7% 12.4% 12.1% 11.8% 11.8% 11.5% 12% 140 131.9 129.4 Technology costs as a % of revenue 122.6 6.2 123.1 5.7 117.8 118.8 120 7.2 4.9 10% 8.9 5.6 32.4 100 44.2 31.6 89.9 32.2
Slide 32: 1H15 Operating Cash Flow Analysis
1H15 Operating Cash Flow Analysis Financial Results For personal use only 250 200 61.1 150 0.0 0.5 6.3 10.2 USD M 100 191.9 147.7 50 0 Net Operating Net Receipts & Loan Servicing Dividends & Interest Paid & Income Taxes Net Operating Cash Flow 1H14 Payments Advances Interest Other Finance Paid Cash
Slide 33: Capital Expenditure vs. Depreciation
Capital Expenditure vs. Depreciation Financial Results 40 37.8 For personal use only 0.9 35 30 25.6 24.3 23.9 25 23.7 1.6 3.2 2.0 USD M 5.6 20 3.9 3.8 12.9 15 13.0 0.6 2.1 10.3 0.9 9.5 1.3 10 0.3 1.5 0.6 17.2 1.3 2.7 0.9 14.6 2.6 11.1 5 10.2 7.6 6.4 4.9 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Informati
Slide 34: Free Cash Flow
Free Cash Flow Financial Results For personal use only 250 217.4 200.8 200 188.2 191.9 146.4 147.7 150 133.3 USD M 100 50 30.1 23.6 20.2 10.0 6.3 10.2 10.3 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Operating Cash Flows Cash outlay on Capital Expenditure Note: Excludes assets purchased through finance lea
Slide 35: Balance Sheet at December 2014
Balance Sheet at 31 December 2014 Financial Results For personal use only Dec-14 Jun-14 Variance USD M USD M Dec-14 to Jun-14 Current Assets $1,057.9 $1,117.5 (5.3%) See CPU interim Financial Statements Appendix 4D as at 31 December 2014 for full details. Non Current Assets $2,569.9 $2,690.7 (4.5%)
Slide 36: Key Financial Ratios
Key Financial Ratios Financial Results For personal use only EBITDA Interest Coverage Net Financial Indebtedness to EBITDA 14 3.5 12 3.0 10 2.5 8 2.0 Times Times 13.2 6 1.5 2.92 2.86 2.72 9.5 10.2 2.47 8.6 2.26 2.13 2.28 4 7.3 7.7 8.4 1.0 2 0.5 0 0.0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 1H12 2H12 1H13
Slide 37: Debt Facility Maturity Profile
Debt Facility Maturity Profile Financial Results Private Maturity Dates Debt Committed Bank Placement USD M Drawn Debt Facilities Debt Facility Facility For personal use only FY15 Mar-15 124.5 124.5 124.5 FY16 Dec-15 93.3 150.0 FY17 Mar-17 21.0 21.0 21.0 FY18 Jul-17 434.3 450.0 450.0 Feb-18 40.0 40.
Slide 38: Working Capital Management
Working Capital Management Financial Results Days sales outstanding For personal use only 50 48 46 45 45 45 43 42 42 40 35 30 No. Of Days 25 20 15 10 5 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 30
Slide 39: Return on Invested Capital vs. WACC and Return on Equity
Return On Invested Capital vs. WACC and Return on Equity Financial Results For personal use only 30% 28.01% 27.24% 25.80% 25% 22.34% 20% 16.38% 16.65% 15.84% 14.37% 15% 10% 8.97% 9.51% 9.33% 8.61% 5% 0% FY12 FY13 FY14 1H15 WACC ROIC ROE • ROIC = (Mgt EBITDA less Depreciation less Income Tax expense)
Slide 40: Equity Management: Interim Dividend
Equity Management Interim Dividend of 15 cents (AU) Financial Results For personal use only EPS - Statutory US 2.79 cents EPS - Management US 28.88 cents Interim Dividend AU 15 cents (20% franked) Current Yield* 2.6% * Based on 12 month dividend and share price of AU$11.65 (close 9th Feb 2015). 32
Slide 41: Financial Summary – Final Remarks
Financial Summary – Final Remarks Financial Results › Despite the impact of previously flagged headwinds and the ongoing For personal use only challenging trading conditions, Group earnings were only marginally lower than pcp. › Ongoing disciplined cost management continues to support results with n
Slide 42: CEO's Introduction / Financial Results Report
For personal use only Financial CEO’s Introduction Results Report 34
Slide 43: CEO's Report
CEO’s Report For personal use only Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER CEO PRESENTATION V1DIS
Slide 44: Group Strategy and Priorities
Group Strategy and Priorities CEO’s Report Our group strategy remains as it has been: For personal use only - 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. -
Slide 45: Delivery against strategy and priorities
Delivery against strategy and priorities CEO’s Report Recent, albeit modest, acquisitions have been fully integrated and the synergies For personal use only expected have been achieved along with high levels of customer retention. Limited opportunities in our traditional registry space remain. We ha
Slide 46: USA Update
USA Update CEO’s Report › We continue to achieve strong client retention and satisfaction in Transfer Agency and Employee Share Plans; including clients of the recently acquired For personal use only R&T business. › Continued low interest rates and a slower-than-anticipated rebound in completed M&A
Slide 47: Canada Update
Canada Update CEO’s Report For personal use only › 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)
Slide 48: UCIA Update
UCIA Update CEO’s Report › The integration of the Morgan Stanley Global Stock Plan business was For personal use only completed successfully and on schedule in December 2014. › Transactional activity in Employee Share Plans is lower due to increased equity market volatility and fewer large vesting e
Slide 49: Continental Europe Update
Continental Europe Update CEO’s Report › Agreed to purchase the issuer services business of Istifid S.p.A, the 3rd For personal use only largest provider in the Italian market, to further strengthen our market leading position. › Despite political and competitive pressure in Russia increasing we had
Slide 50: Asia Update
Asia Update CEO’s Report › The Investor Service business has seen continued growth in new clients from For personal use only 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
Slide 51: Australia & New Zealand Update
Australia & New Zealand Update CEO’s Report › The Australian Investor Services business continues to hold its market For personal use only leading position. In addition to retaining a number of important clients, 1H15 saw some significant new registry client wins including QBE. › Computershare’s uni
Slide 52: Half Year Results 2015 Presentation
Computershare Limited For personal use only Half Year Results 2015 Presentation Stuart Irving Mark Davis 11 February 2015 V1DIS
Slide 53: Appendix
For personal use only Appendix: Half Year Results 2015 Presentation 11 February 2015 45
Slide 54: Appendix 1: Group Comparisons
For personal use only Appendix 1: Group Comparisons Group Comparisons 46
Slide 55: Management Revenue
Management Revenue Half Year Comparisons Financial Results For personal use only 100% 3% 2% 2% 1% 2% 1% 1% 9% 10% 10% 10% 10% 10% 12% 90% 11% 12% 11% 13% 13% 13% 80% 11% 5% 3% 4% 3% 4% 2% 4% 70% 23% 24% 60% 19% 24% 25% 23% 26% 50% 9% 9% 9% 7% 8% 7% 8% 40% 30% 20% 43% 42% 41% 41% 40% 40% 40% 10% 0% 1
Slide 56: Management Revenue by Product
Management Revenue by Product Half Year Comparisons Financial Results For personal use only 1,200 1,037.3 1,037.5 1,045.7 17.2 987.6 14.5 14.1 976.9 959.5 1,000 91.7 16.3 99.8 15.6 100.0 14.3 98.3 94.8 96.7 112.3 124.6 134.6 781.4 112.5 800 52.2 124.9 121.6 21.5 45.4 46.7 31.2 90.3 28.0 21.1 234.7 U
Slide 57: Management Revenue
Management Revenue Half Year Comparisons Financial Results 500 For personal use only 440.6 432.3 429.4 450 394.7 389.5 387.3 400 334.2 350 300 247.3 246.9 245.8 241.8 241.0 234.7 250 USD M 200 148.3 134.6 124.9 124.6 121.6 112.5 112.3 150 100.0 99.8 98.3 96.7 94.8 92.8 91.7 90.3 88.7 85.0 77.2 77.0
Slide 58: 1H15 Management Revenue Regional Analysis
1H15 Management Revenue Regional Analysis Financial Results For personal use only 250 189.4 200 150 121.4 USD M 100 64.4 62.9 54.3 52.3 49.4 37.4 32.3 50 32.2 30.2 28.5 21.6 20.0 18.5 16.4 15.6 14.3 13.6 11.2 10.7 8.7 8.7 6.9 6.5 5.8 3.8 3.8 3.1 2.9 2.3 1.6 1.6 1.6 1.5 1.2 1.1 0.7 0.5 0.5 0.3 0.0 0
Slide 59: Effective Tax Rate
Effective Tax Rate Statutory & Management Financial Results For personal use only 70% 63.3% 60% The Group’s effective statutory tax rate is 63.3% for the half 50% year ended 31 December 2014. The Group’s effective statutory tax rate for the comparative prior period was 19.4%. Tax Rate % 40% The incr
Slide 60: Appendix 2: Country Summaries
For personal use only Appendix 2: Country Summaries Country Summaries 52
Slide 61: Australia
Australia Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 250 80 74.7 71.9 218.3 71.5 71.0 69.7 211.3 69.3 68.2 67.8 66.2 70 198.1 64.5 63.9 193.5 189.0 188.5 187.9 200 56.5 55.7 60 53.0 50 150 39.2 38.8 AUD M AUD M 37.0 35.8 40 35.3 100 30 22.1 20.4 18.9
Slide 62: Hong Kong
Hong Kong Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 400 200 183.8 177.9 180 350 161.2 160.8 159.4 157.7 156.6 160 282.6 300 264.6 253.9 140 247.6 231.7 226.8 225.0 250 120 HKD M HKD M 200 100 72.5 80 150 50.6 60 48.1 46.2 46.0 42.1 100 40.3 36.5 36.
Slide 63: India
India Half Year Comparison Financial Results Total Revenue 1,400 Revenue Breakdown For personal use only 1,600 1,451.3 1,140.5 1,200 1,299.1 1,255.4 1,400 1,246.3 1,127.5 940.0 1,200 1,000 895.8 1,018.5 870.1 998.0 1,000 723.0 800 660.0 INR M 632.5 INR M 800 600 600 356.1 336.0 334.8 330.6 400 292.9
Slide 64: United States
For personal use only 56 USD M 0 100 200 300 400 500 600 1H12 217.7 2H12 452.5 1H13 407.2 2H13 455.2 1H14 437.9 United States Total Revenue 2H14 468.1 1H15 409.3 USD M 50 0 150 200 250 100 Half Year Comparison 112.5 215.1 184.9 208.8 196.0 Register 210.4 Maintenance 189.4 17.9 45.2 48.8 37.9 Actions
Slide 65: Canada
Canada Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 120 50 46.7 46.3 110.2 108.8 106.6 103.5 43.2 45 41.3 98.6 40.2 96.9 39.0 94.0 38.7 100 38.1 37.8 40 37.2 36.8 35.6 34.8 32.7 35 80 30 CAD M CAD M 60 25 20 15.0 40 12.3 15 11.0 10.6 9.6 9.5 9.5 9.0 8.
Slide 66: United Kingdom & Channel Islands
United Kingdom & Channel Islands Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 45 40.6 39.6 39.1 40 94.0 100 89.2 33.7 33.6 87.8 35 31.9 90 82.5 82.4 31.3 79.8 76.1 28.7 80 30 70 24.0 25 21.5 21.0 GBP M 20.7 GBP M 20.5 20.5 20.5 20.3 60 20.1 19.7 19.2 1
Slide 67: South Africa
South Africa Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 130.3 200 140 128.3 128.1 124.9 123.6 117.7 180 112.4 120 160 144.5 144.0 142.5 138.0 135.8 130.3 100 140 125.4 120 80 RAND M RAND M 100 60 80 60 40 40 20 7.8 20 7.8 7.5 7.4 7.2 7.2 7.1 6.0 5.4
Slide 68: Germany
Germany Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 14 30 27.7 27.1 12.4 25.7 11.6 12 25 10.4 9.5 10 20 8.4 8.4 8.3 8.2 16.0 8 7.4 15.4 EUR M EUR M 14.8 15 6.2 12.9 6 4.8 10 3.5 4 3.4 2.9 2.3 2.3 2.3 2.2 2.2 2.1 2.1 2.0 5 1.7 1.7 1.5 2 1.4 1.2 1.2 1.2
Slide 69: Russia
Russia Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 600 600 532.2 511.5 500 500 450.3 430.6 421.2 418.5 403.5 393.5 373.8 400 363.4 361.2 353.3 400 342.5 340.1 RUB M RUB M 300 300 200 200 100 100 25.0 23.3 20.5 19.7 18.7 17.9 17.7 2.9 0.0 0.0 0.0 0.0 0
Slide 70: Appendix 3: Assumptions
Appendix 3: Assumptions Financial Results For personal use only Assumptions 62
Slide 71: Assumptions: Exchange Rates
Assumptions: Exchange Rates Financial Results Average exchange rates used to translate profit and loss to US dollars For personal use only 1H15 1H14 USD 1.0000 1.0000 AUD 1.10921 1.08746 HKD 7.75365 7.75463 NZD 1.22548 1.24547 INR 60.96397 62.31423 CAD 1.10205 1.04514 GBP 0.60963 0.63533 EUR 0.7702
Slide 72: Important Notice
For personal use only 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', 'objecti