Slide 1: Market Announcement: Investor and Analyst Briefing 2014
Computershare Limited ABN 71 005 485 825 Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Australia PO Box 103 Abbotsford Victoria 3067 Australia Telephone 61 3 9415 5000 Facsimile 61 3 9473 2500 MARKET ANNOUNCEMENT For personal use only www.computershare.com Date: Thursday 20 March 2014 To
Slide 2: Investor & Analyst Briefing
Investor & Analyst Briefing For personal use only Computershare Limited 20 March 2014 V1DIS
Slide 3: Introduction
Investor & Analyst Briefing For personal use only Introduction Stuart Crosby President & CEO 20 March 2014 V1DIS
Slide 4: Business Overview – UCIA
Investor & Analyst Briefing For personal use only Business Overview – United Kingdom, Channel Islands, Ireland & Africa (UCIA) Naz Sarkar Head of Computershare UCIA 20 March 2014 V1DIS
Slide 5: Plan Managers
Regional Overview Plan Managers For personal use only › State of play - The migration of all Halifax Employee Equity Services clients was completed in 2013. - The integration of the Morgan Stanley Global Share Plan Services business is on track and due to be fully completed by the end of 2014. - The
Slide 6: UCIA Channel Islands
Regional Overview - UCIA Channel Islands For personal use only › State of play - Client service levels and client satisfaction remain high and translating into good win rates both at tender and up-sales. - Jersey Trust becoming an increasingly important component for Depositary Receipt issuance. - C
Slide 7: Investor Services – United Kingdom
Regional Overview – UCIA Investor Services – United Kingdom For personal use only › State of play - High levels of customer approval and loyalty. - Vodafone Return of Value the largest single corporate action in UK ever with over $80bn of value returned to holders. - IPO market is back, particularly
Slide 8: UCIA Ireland
Regional Overview - UCIA Ireland For personal use only › State of play - Positive signs in registry market with 5 new upcoming IPOs, 2 switch wins and no losses. - Further momentum in US and other foreign companies re-incorporating in Ireland as well as Irish company IPOs in the US. - Now administer
Slide 9: UCIA Business Services
Regional Overview - UCIA Business Services For personal use only › State of play - Gilts contract successfully renewed for 10 years following a competitive procurement process. - Deposit Protection Scheme continues to grow market share and is now the only provider in England and Wales to offer both
Slide 10: UCIA Voucher Services (CVS)
Regional Overview - UCIA Voucher Services (CVS) For personal use only › State of play - Government response to its own consultation on the new Tax-free childcare (TFC) scheme 2 months overdue. - Press release on Tuesday 18th March suggests that TFC will be managed solely by Government agency. - Acqu
Slide 11: UCIA Communication Services
Regional Overview - UCIA Communication Services For personal use only › State of play - Increased Employee Plans activity is driving additional revenue. - Sector specific proposition development for Wealth Management & Utilities is yielding increased new business. - Sutton & East Surrey Water repres
Slide 12: UCIA South Africa
Regional Overview - UCIA South Africa For personal use only › State of play - There has been a pick up in new listings and M&A activity. We are maintaining market share by securing the majority of these. - Corporate client relationships remain strong. › Challenges and opportunities - New market entr
Slide 13: Georgeson – Corporate Proxy Solicitation
Regional Overview - UCIA Georgeson – Corporate Proxy Solicitation For personal use only › State of play - Corporate Proxy now based on 40% recurring revenues related to Annual General Meetings. - Shareholder activism on the rise. - Concern over new binding votes on pay in the UK and Switzerland driv
Slide 14: UCIA Question Time
Investor & Analyst Briefing For personal use only Business Overview – United Kingdom, Channel Islands, Ireland & Africa (UCIA) Question Time Naz Sarkar Head of Computershare UCIA 20 March 2014 V1DIS
Slide 15: Business Overview – Continental Europe
Investor & Analyst Briefing For personal use only Business Overview – Continental Europe Steffen Herfurth Head of Computershare Continental Europe 20 March 2014 V1DIS
Slide 16: European Regulatory and Infrastructure Developments
Regional Overview – Continental Europe European Regulatory and Infrastructure Developments For personal use only › Market participants continue to debate a range of initiatives that have the potential to change the European market dynamic in the near to mid-term, including: › Infrastructure initiati
Slide 17: Investor Services - Russia
Regional Overview – Continental Europe Investor Services - Russia For personal use only › State of play - CPU is now the largest registry services provider in Russia. - Continued technology investment establishes us as the clear market leader in deployment of online services using the Computershare
Slide 18: Investor Services & Plans – Denmark and Sweden
Regional Overview - Continental Europe Investor Services & Plans – Denmark and Sweden For personal use only › State of play - Successfully pursuing the strategy of cross-selling to existing clients and winning new mandates with a unique service portfolio. - Growth in non-AGM voting services (Employe
Slide 19: Investor Services - Germany
Regional Overview - Continental Europe Investor Services - Germany For personal use only › State of play - Maintaining market leadership by number of AGMs (>250 events p.a.) and blue chip clients (27 out of 30 DAX). High client retention and contract renewals. 3 new clients (Siemens and spin-offs) w
Slide 20: Investor Services - Italy
Regional Overview - Continental Europe Investor Services - Italy For personal use only › State of play - Re-branding of Servizio Titoli to Computershare in September 2013. - New business opportunities are limited by weak IPO market. - Undisputed market leader and strengthening its position by wideni
Slide 21: Georgeson Corporate Proxy – Southern Europe
Regional Overview - Continental Europe Georgeson Corporate Proxy – Southern Europe For personal use only › State of play - Against weak market conditions, the client portfolio for Proxy Solicitation is slowly increasing across the region. - A specific solution to act as an Information Agent for clos
Slide 22: Continental Europe Question Time
Investor & Analyst Briefing For personal use only Business Overview – Continental Europe Question Time Steffen Herfurth Head of Computershare Continental Europe 20 March 2014 V1DIS
Slide 23: Business Overview – United States of America
Investor & Analyst Briefing For personal use only Business Overview – United States of America Steven Rothbloom Head of Computershare United States of America 20 March 2014 V1DIS
Slide 24: Investor Services
Regional Overview – United States of America Investor Services For personal use only › State of play - Client satisfaction (97%) and recommendation rate (91%) strong and increasing, good retention: 400+ contracts renewed/extended FYTD. - Leveraging solid market and steady transaction levels to drive
Slide 25: Corporate Proxy Solicitation & Fund Services
Regional Overview - United States of America Corporate Proxy Solicitation & Fund Services (CFS) For personal use only › State of play - Overall Georgeson proxy business – annual meeting, proxy fights and M&A – relatively flat year over year as we head into the AGM season. - M&A activity: #1 Provider
Slide 26: Plan Managers
Regional Overview - United States of America Plan Managers For personal use only › State of play - New client assignments, market improvements, new business and internal initiatives to increase participant revenues and reduce expenses driving strong financial results. - Business pipeline strong; 45
Slide 27: Communication Services
Regional Overview - United States of America Communication Services For personal use only › State of play - 1H FY14 volumes strong in core print mail business driven by higher transactional activities, events and commercial sales (non-CPU) penetration. - Current trend of annual unit volumes processe
Slide 28: INVeSHARE
Regional Overview - United States of America INVeSHARE For personal use only › State of play - CPU 25% owner and strategic partner. - Next generation technology platform for street communications. - CPU providing physical fulfilment, sales support and private label contracting. › Challenges and oppo
Slide 29: Bankruptcy & Class Action Administration (KCC)
Regional Overview - United States of America Bankruptcy & Class Action Administration (KCC) For personal use only › State of play - Corporate bankruptcy activity remains low. - In this slow period, KCC was awarded the largest engagement of the year; as well as an additional notable win, the City of
Slide 30: SLS
Regional Overview - United States of America SLS For personal use only › State of play - Mortgage servicing market remains robust. - SLS completed large MSR transaction with financial partner. - Unpaid Principal Balance (UPB) now at approx. $33B with robust pipeline. › Challenges and opportunities -
Slide 31: MSR Acquisition Financing Overview
Regional Overview – United States of America MSR Acquisition Financing Overview For personal use only › Flagged this time last year that a component of SLS’ growth strategy included pursuing acquisitions of Mortgage Servicing Rights (MSRs) and we have continued to pursue that strategy. › This is in
Slide 32: MSR Acquisition Financing Overview cont.
Regional Overview – United States of America MSR Acquisition Financing Overview cont. For personal use only › Having a 3rd party funding vehicle or financing partner that takes on the funding of existing and future advances and / or the MSR cost materially improves transaction economics. › The fundi
Slide 33: United States of America Question Time
Investor & Analyst Briefing For personal use only Business Overview – United States of America Question Time Steven Rothbloom Head of Computershare United States of America 20 March 2014 V1DIS
Slide 34: Global Service Model
Investor & Analyst Briefing For personal use only Global Service Model Stuart Irving Chief Information Officer 20 March 2014 V1DIS
Slide 35: Global Service Model - An Acquired Best Practice
Global Service Model - An Acquired Best Practice For personal use only › Outsourcing and offshoring expertise acquired from the Shareowner Services Acquisition (2012) › 10+ years of experience in: - Call Centre and Web Chat in the Philippines. - Transaction processing and technology development in I
Slide 36: What was the Opportunity
What was the Opportunity For personal use only › Leverage the acquired capabilities, enhanced with Computershare’s infrastructure and processes, to create a Global Service Model (GSM) that delivers: - Virtual offshore centres operating on the same applications, controls and processes as onshore oper
Slide 37: Advantages of the Global Service Model
Advantages of the Global Service Model For personal use only New for legacy CPU clients New for legacy BNYM clients › Live Chat web support. › Virtual service centre model. › Longer operating hours and faster › Improved caller experience - screen turnaround times. pop-up, call handling procedures, s
Slide 38: Global Service Model Transition
Global Service Model Transition For personal use only 37
Slide 39: Foundation - Vendor Strategy & Contract Negotiation
Foundation - Vendor Strategy & Contract Negotiation For personal use only Critical Success Factors Outcomes › Partnerships with vendors › Changed and added new aligned to CPU’s strategic vendor relationships for both objectives to provide best in call centre servicing and class operations’ servicing
Slide 40: Foundation - Technology Platform
Foundation - Technology Platform › All Offshore processing is performed on the same applications as onshore. For personal use only › All Offshore processing restricted to virtual desktop architecture: - Personnel use computers that render screens and accept keystroke input. - All shareholder and cli
Slide 41: Foundation - Business Readiness
Foundation - Business Readiness › Enhancement of virtual Operations model to include offshore sites: For personal use only - Clients no longer required to choose between an onshore or offshore model. - Seamless routing of transaction types based on virtual model and resource availability. - Common b
Slide 42: Foundation - Global Workforce Planning and Dashboards
Foundation - Global Workforce Planning and Dashboards For personal use only Components and Benefits › Global workforce planning team created to provide consolidated view and management of transaction volumes for resource optimisation and capacity planning. › Consistent with virtual service model, pr
Slide 43: Expansion
Expansion › GSM expanded to legacy US CPU registry clients. For personal use only - Client communications and consents. - Offshore staff expansion. - Transition planning. › Additional transactions and products introduced to GSM. › Karvy Computershare Private Ltd. introduced as additional Indian tran
Slide 44: Globalisation
Globalisation › Australian and Canadian adoption of GSM for Registry in 2013. For personal use only › Initiated reviews of other opportunities to leverage offshore capabilities for other CPU business lines including: - Business Services. - Technology. - Corporate Administration. 43
Slide 45: Optimisation
Optimisation › Leverage and implement best practices across regions to maximise For personal use only benefits without hindering quality - Global workforce management - Cross train representatives to optimise demand across regions. - Common Practices - Standardise processes and controls across regio
Slide 46: Where are we in the Journey
Where are we in the Journey › Vendor Evaluation For personal use only - Continual evaluation of onshore and offshore performance. › Progress on Volumes - About one-third of eligible GSM transactions achieved to date. - We expect that the total universe of eligible transactions for the GSM will be ca
Slide 47: Global Service Model Question Time
Investor & Analyst Briefing For personal use only Global Service Model Question Time Stuart Irving Chief Information Officer 20 March 2014 V1DIS
Slide 48: Business Overview – Serviceworks Group
Investor & Analyst Briefing For personal use only Business Overview – Serviceworks Group Andrew Duncan Managing Director, Serviceworks Group 20 March 2014 V1DIS
Slide 49: Why did Computershare acquire the Serviceworks Group?
Business BusinessOverview: OverviewServiceworks Group Group – Serviceworks Why Whydid did Computershare acquirethe Computershare acquire theServiceworks ServiceworksGroup Group? For personal use only › Deal Rationale - Entry point into a new vertical with a business that delivers services using very
Slide 50: Serviceworks Group Overview
Business BusinessOverview: OverviewServiceworks Group Group – Serviceworks Group Overview Group Overview For personal use only Serviceworks Group - Commenced 1999 in Melbourne consulting to newly privatised energy retailers. Three combined growth engines Acquired by Computershare in 2011. - We curre
Slide 51: Historical Milestones
Business Overview – Serviceworks Group Historical Milestones For personal use only 1999 2002 2003 2006 2008 2010 2011 2012 2013 Offering Full Continued End-to-End to grow Meter-to- Services Connectnow client base launched in Offering Cash Serviceworks North America Concise Bureau Services Customer S
Slide 52: Strategic Perspective
Business Business Overview: Overview Serviceworks GroupGroup – Serviceworks Strategic StrategicPerspective Perspective For personal use only › Integration into Computershare - Migration of shared services such as legal, compliance, finance, HR and IT infrastructure completed. - Leveraging knowledge
Slide 53: What does Serviceworks do
Business Overview – Serviceworks Group What does Serviceworks do For personal use only › Foundation business of the Serviceworks Group - Aims to provide clients with strategic advantage by leveraging technologies and scale – removing duplication across capabilities and functions. 1. Consulting › Pro
Slide 54: Serviceworks Market Overview
Business Overview – Serviceworks Group Serviceworks Market Overview For personal use only › Eighty independent energy and water organisations across Australia - Serviceworks services less than 20% of this core target market. › Three market segments - Large government tenders and large scale incumben
Slide 55: The Serviceworks Approach
Business Overview – Serviceworks Group What does Serviceworks do For personal use only › The Serviceworks Approach - Market knowledge › Identify market needs and capability gaps in the Utilities sector. - Develop › Develop specialist services and capabilities to deliver solutions to industry issues.
Slide 56: Customer Management Services
Business Overview – Serviceworks Group What does Serviceworks do For personal use only Customer Management Services Specialist Consulting Move Middle & Back of House Move Customer Service Ins Services Outs Planning & Strategy Deliver & Move Ins / Credit Send Bills Collect Usage Billing Customer Serv
Slide 57: What does Connectnow do
Business Overview – Serviceworks Group What does Connectnow do For personal use only › Business has built up organically since its foundation in 2001. › Provides comprehensive services for customers moving home. › Services facilitated including energy, water, telecommunications, pay TV, insurance, r
Slide 58: Connectnow Market Overview
Business Overview – Serviceworks Group Connectnow Market Overview For personal use only › Strong growth over past 10 years. › Category awareness has also grown. › Traditional channel is becoming very competitive and not expected to deliver growth at historic levels. › The specialist move home servic
Slide 59: Switchwise
Business Overview – Serviceworks Group Switchwise For personal use only › What does Switchwise do - Established in 2008 to sit alongside Serviceworks and Connectnow for customers seeking accurate price comparison. - Retail energy price comparison business. - Smallest business in the portfolio. - Aga
Slide 60: International Market Expansion
Business Overview – Serviceworks Group International Market Expansion For personal use only › Launched into the US via Texas – Texas market potentially as large as Australia. › North East States of US exhibit characteristics that lend to Serviceworks model e.g. competitive markets. › Other potential
Slide 61: Current State
Business Overview – Serviceworks Group Current State For personal use only › Serviceworks group has experienced strong organic growth over the past 10 years. › Tier 2 and new entrant retailers in competitive markets continue to find our outsource offering attractive - Need to keep systems and proces
Slide 62: Serviceworks Group Question Time
Investor & Analyst Briefing For personal use only Business Overview – Serviceworks Group Question Time Andrew Duncan Managing Director, Serviceworks Group 20 March 2014 V1DIS
Slide 63: Business Overview – Canada
Investor & Analyst Briefing For personal use only Business Overview – Canada Wayne Newling Head of Computershare Canada 20 March 2014 V1DIS
Slide 64: Investor Services
Regional Overview – Canada Investor Services For personal use only › State of play - Client satisfaction remains very high with overall satisfaction ratings at 95% whilst 90% willing to recommend our services. - M&A activity remains sluggish, however IPO activity up 40% calendar 2013 versus calendar
Slide 65: Corporate Trust
Regional Overview - Canada Corporate Trust For personal use only › State of play - Strong first half of the fiscal year underpinned by winning new mandates and retaining tenders on existing mandates. - Debt under administration continues to grow. - Broker Registered Product continues to perform well
Slide 66: Communication Services
Regional Overview - Canada Communication Services For personal use only › State of play - Growth in commercial sales continues. - Client net promoter scores remain at very high levels. - Cost control and margin enhancement remains a key focus. - Exploring the Inbound Process Automation market to div
Slide 67: Plan Managers
Regional Overview - Canada Plan Managers For personal use only › State of play - Well positioned to capitalize on investment made to “Canadianize” our new grant- based award (Stock Options & Restricted Stock) recordkeeping system. - Interest in new system amongst our existing and competitors’ client
Slide 68: Corporate Proxy
Regional Overview - Canada Corporate Proxy For personal use only › State of play - Competitive landscape remains congested. - Pricing pressures continue due to new and existing entrants to marketplace. - Soft corporate activity resulting in deal flow at recent lows (industry off by 30% year on year)
Slide 69: Canada Question Time
Investor & Analyst Briefing For personal use only Business Overview – Canada Question Time Wayne Newling Head of Computershare Canada 20 March 2014 V1DIS
Slide 70: Business Overview - Asia
Investor & Analyst Briefing For personal use only Business Overview - Asia James Wong Head of Computershare Asia 20 March 2014 V1DIS
Slide 71: Asia: Hong Kong
Regional Overview - Asia Hong Kong For personal use only › State of play - Fundraising and other corporate activities finally started to recover in Q2FY14. - Drafting of Dematerialisation legislation to be submitted to Legislative Council in April 14. Working groups restarted with aggressive timelin
Slide 72: Asia: China
Regional Overview - Asia China For personal use only › State of play - Employee Plans business in China continues strong growth. - Interest in Shareholder ID and Proxy Solicitation growing. - Opened presence in Shanghai to complement Beijing. › Challenges & opportunities - International Board still
Slide 73: Asia: India
Regional Overview - Asia India For personal use only › State of play - IPOs and public sector privatisation still in the doldrums. - Reduced growth, inflation, softened currency and upcoming election drag on the market. - SEBI making efforts to improve the funds industry environment and encouraging
Slide 74: Asia: Japan
Regional Overview - Asia Japan For personal use only › State of play - Abenomics starting to work. - Moved our joint venture sales responsibilities into our partner Mitsubishi UFJ Trust Bank. - Early indications of improved deal flow. › Challenges & opportunities - A reinvigorated economy will gener
Slide 75: Asia Question Time
Investor & Analyst Briefing For personal use only Business Overview – Asia Question Time James Wong Head of Computershare Asia 20 March 2014 V1DIS
Slide 76: Business Overview – Australia & New Zealand
Investor & Analyst Briefing For personal use only Business Overview – Australia & New Zealand Scott Cameron Head of Computershare Australia & New Zealand 20 March 2014 V1DIS
Slide 77: Investor Services - Australia
Regional Overview – Australia & New Zealand Investor Services - Australia For personal use only › State of play - Market leader (60% of ASX 20; 55% of ASX 200). - 98% of respondents to 2014 Australian Registry Services Provider survey rated our performance as positive. - Contributed to the success o
Slide 78: Investor Services – New Zealand
Regional Overview - Australia & New Zealand Investor Services – New Zealand For personal use only › State of play - Market leader, with 62% of NZX50 index. - Successfully completed IPOs of Mighty River Power and Meridian Energy. › Challenges and opportunities - Pipeline of work for sale of remaining
Slide 79: Communication Services
Regional Overview - Australia & New Zealand Communication Services For personal use only › State of play - A leading provider of specialised inbound and outbound communication services that integrate print, mail and electronic solutions. - Provides point of difference from registry competitors – all
Slide 80: Plan Managers
Regional Overview - Australia & New Zealand Plan Managers For personal use only › State of play - Market leader. - Continued growth of business. - New client wins including some “lost” clients returning. - Trading volumes down. › Challenges and opportunities - Competitive landscape. - Potential roll
Slide 81: Proxy Solicitation
Regional Overview - Australia & New Zealand Proxy Solicitation For personal use only › State of play - Industry leader with promising uptick in market activity. - Involved in a number of high profile campaigns including Saputo Inc. takeover of Warrnambool Cheese & Butter Factory; Westfield Group Ltd
Slide 82: Serviceworks Group
Regional Overview - Australia & New Zealand Serviceworks Group For personal use only › State of play - Strong growth since acquisition in August 2011. - Added new clients and many existing clients have continued to grow. - Connectnow and Switchwise markets have seen competition intensify. - Integrat
Slide 83: Australia & New Zealand Question Time
Investor & Analyst Briefing For personal use only Business Overview – Australia & New Zealand Question Time Scott Cameron Head of Computershare Australia & New Zealand 20 March 2014 V1DIS
Slide 84: Close
Investor & Analyst Briefing For personal use only Close V1DIS