Slide 1: Welcome & Introduction
Investor & Analyst Briefing For personal use only Welcome & Introduction Stuart Crosby President & Chief Executive Officer 21 March 2013
Slide 2: Business Overview: UK, Channel Islands, Ireland & Africa (UCIA)
Investor & Analyst Briefing For personal use only Business Overview: United Kingdom, Channel Islands, Ireland & Africa (UCIA) Naz Sarkar Head of UCIA 21 March 2013
Slide 3: UCIA Plan Managers
Regional Overview: UCIA Plan Managers For personal use only State of play › Underlying Plans business performing well with very high client retention/renewal rates in the year and significant new client wins. › Transactional revenue remains strong and we have seen some early positive impact of recov
Slide 4: GSPS EMEA Acquisition
Regional Overview: UCIA Plan Managers For personal use only GSPS EMEA Acquisition › Strong corporate client customer base that includes large UK and European issuers. › GSPS compared to the EES acquisition*: Employees • 9% Clients • 33% Annual Revenue • 74% Revenue per client • 225% Revenue per part
Slide 5: UCIA Channel Islands
Regional Overview: UCIA Channel Islands For personal use only State of play › Offshore business still performing strongly with good organic growth year on year. › Offshore Registry in Jersey and Guernsey showing steady growth with high win rates on tenders. › The Vested Share Account product is prov
Slide 6: UCIA Registry UK
Regional Overview: UCIA Registry UK For personal use only State of play › Continue to enjoy high levels of customer approval. Rated number one in Capital Analytics Survey overall and top in 6 of the 8 headline categories. › Some major client contracts renewed with minimal client losses. › Direct Lin
Slide 7: UCIA Ireland
Regional Overview: UCIA Ireland For personal use only State of play › Registry market remains very ‘sticky’. › Increase in companies re-domiciling to Ireland and spin-offs listing in US. › Now administering over 300 ETF funds – up from 240 last year and seeing growth in underlying transaction volume
Slide 8: UCIA Communication Services
Regional Overview: UCIA Communication Services For personal use only State of play › Continued focus on providing high quality communication services for the internal business units, plus ongoing development of commercial revenues. › Continued focus on protecting existing revenue & profit, by renewi
Slide 9: UCIA South Africa
Regional Overview: UCIA South Africa For personal use only State of play › M&A activity remains subdued but we continue to pick up the majority of new listings in the market. › Corporate client relationships remain very strong with minimal impact from new registry and CSDP market entrants. › Managem
Slide 10: Georgeson – Corporate Proxy Solicitation
Regional Overview: UCIA Georgeson – Corporate Proxy Solicitation For personal use only State of play › Corporate Proxy now based on 30% recurring revenues related to Annual General Meetings. › One-off activity related to M&A continues to be subdued but shareholder activism related activity continues
Slide 11: Computershare Voucher Services (CVS)
Regional Overview: UCIA Computershare Voucher Services (CVS) For personal use only State of play › CVS continues to be the market leader in a fragmented and highly competitive market. › Government announced in its mid-term review that it intends to give working families further support with their ch
Slide 12: UCIA Business Services
Regional Overview: UCIA Business Services For personal use only State of play › DPS continues to grow market share in line with growth in the private rented sector. › From April DPS will be the only scheme to offer both custodial and insured options following successful tender process. › Scottish cu
Slide 13: Question Time
Investor & Analyst Briefing For personal use only Question Time Naz Sarkar Head of UCIA 21 March 2013
Slide 14: Business Overview: Continental Europe
Investor & Analyst Briefing For personal use only Business Overview: Continental Europe Steffen Herfurth Head of Computershare Continental Europe 21 March 2013
Slide 15: EU Regulatory and Infrastructure Developments
Regional Overview: Continental Europe EU Regulatory and Infrastructure Developments For personal use only There are a raft of initiatives in play that may change the market dynamic in the near to mid- term, including: Infrastructure initiatives: › Proposed introduction of T2S settlement system, by t
Slide 16: Investor Services - Russia
Regional Overview: Continental Europe Investor Services - Russia For personal use only State of play › Two registrars owned by CPU in Russia cumulatively have the largest market share. › Fund Administrator has been formed by adding specialised depository services into the scope of services. › Roll-o
Slide 17: Investor Services – Denmark & Sweden
Regional Overview: Continental Europe Investor Services – Denmark & Sweden For personal use only State of play › CPU well positioned with unique service portfolio and new products. › Continuously high client satisfaction among registry clients. › Growth in revenue for non-CSD registered share regist
Slide 18: Investor Services - Germany
Regional Overview: Continental Europe Investor Services - Germany For personal use only State of play › Increased market share for CPU due to significant wins: e.g. Siemens AGM (> 9k attending), Osram and Telefonica Deutschland registry and meeting services (incl. >500k mail packs for CCS Germany).
Slide 19: Communication Services - Germany
Regional Overview: Continental Europe Communication Services - Germany For personal use only State of play › Focus remains on operational management and margin improvement. › CIS integration proceeds through registry wins (meeting invitations) and bearer share management (entrance tickets). › Digita
Slide 20: VEM - Germany
Regional Overview: Continental Europe VEM - Germany For personal use only State of play › VEM has acquired a solid base of recurring revenue business, such as paying agency, designated sponsoring, research, SME share option plans and listing partner mandates. › VEM was able to capture a number of SM
Slide 21: Servizio Titoli (ST) - Italy
Regional Overview: Continental Europe Servizio Titoli (ST) - Italy For personal use only State of play › Market remains weak; no new floats very few small caps; last midcap (SEA airport authority) has been pulled back by the market. › SME’s bankruptcy rates at their highest for the last decade. › De
Slide 22: Corporate Proxy – Southern Europe
Regional Overview: Continental Europe Corporate Proxy – Southern Europe For personal use only State of play › Georgeson involved in all material proxy fights in 2012/2013. Market activity after summer break is down. › Focus on additional consulting services incl. Corporate Governance Services – assi
Slide 23: Question Time
Investor & Analyst Briefing For personal use only Question Time Steffen Herfurth Head of Computershare Continental Europe 21 March 2013
Slide 24: Business Overview: Shareowner Services
Investor & Analyst Briefing For personal use only Business Overview: Shareowner Services Mark Davis & Stuart Irving Joint Heads of Shareowner Services 21 March 2013
Slide 25: Transaction Recap
Shareowner Services Integration Transaction Recap For personal use only Recap of the transaction › Cost $550m. › Clearance received on 4 November 2011. › Transaction close achieved 31 December 2011. › 18-month period to complete data migrations; overall, 2-3 year integration program. › We are almost
Slide 26: Key Integration Program Objectives
Shareowner Services Integration Key Integration Program Objectives For personal use only 26. Analyst Briefing of Computershare Limited.
Slide 27: Integration Program Approach
Shareowner Services Integration Integration Program Approach For personal use only 27. Analyst Briefing of Computershare Limited.
Slide 28: Integration Risk Management
Shareowner Services Integration Integration Risk Management For personal use only Key risks all being effectively managed › Client retention. › Synergies achievement. › Staff retention and engagement. › Service quality. › Capacity to continue the benefits of offshoring arrangements. › Client data mi
Slide 29: Synergies
Shareowner Services Integration Synergies For personal use only How we are achieving transaction synergies › Technology. › Operations rationalisation. › Facilities rationalisation. › Staff. › In-sourcing and offshoring. › Vendor management. 29. Analyst Briefing of Computershare Limited.
Slide 30: Synergies Progress
Shareowner Services Integration Synergies For personal use only Synergies progress Anticipated Timing FY12 FY13 FY14 FY15 Delivered 9.3m 11.0m Incremental expected synergies 15.7m 36.8m 5.0m Cumulative expected synergies 36.0m 72.8m 77.8m Costs to realise synergies › We anticipate one off costs of a
Slide 31: Operations Integration – Facilities
Shareowner Services Integration Operations Integration – Facilities For personal use only Facilities consolidation › At close of transaction, Operations were being conducted in a combined total of 13 different locations. › By June 2013, Operations will have been consolidated into 6 locations (includ
Slide 32: Operations Integration – Call Centres
Shareowner Services Integration Operations Integration – Call Centres For personal use only › At close of transaction there were six separate call centres. Two sites, previously announced, are closing in May 2013. Expansion in College Station, TX and Manila. › All remaining call centres, including o
Slide 33: Operations Integration – Call Centers
Shareowner Services Integration Operations Integration – Call Centers For personal use only 33. Analyst Briefing of Computershare Limited.
Slide 34: Operations Integration – Offshoring
Shareowner Services Integration Operations Integration – Offshoring For personal use only › Shareowner Services conducted work with offshore partners in Manila, Philippines and in Noida, India. Previously we discussed exploring these capabilities for the broader group. › Strategic review of vendors
Slide 35: Operations Integration - Offshoring
Shareowner Services Integration Operations Integration - Offshoring For personal use only Offshoring process › Distributed processing. › Work routed based on employee skillset. › Consistency of process and scalability. 35. Analyst Briefing of Computershare Limited.
Slide 36: New Organisational Structure
Shareowner Services Integration New Organisational Structure For personal use only 36. Analyst Briefing of Computershare Limited.
Slide 37: Data Migration Progress Update
Shareowner Services Integration Data Migration Progress Update For personal use only Project consists of two main streams › Shareholder and employee records of clients across 21 tranches. › Image, conversion records from multiple legacy storage systems to CPU platform. 16 of 21 tranche weekends succ
Slide 38: Our Approach to Migration
Shareowner Services Integration Our Approach to Migration For personal use only › System conversions are well advanced and will complete in May 2013 › 21 tranches, grouped according to client complexity › 16 tranches completed successfully 38. Analyst Briefing of Computershare Limited.
Slide 39: Image Data – Seven Platforms into One
Shareowner Services Integration Image Data – Seven Platforms into One For personal use only Legacy BNY Optical Legacy BNY Platter Content Mgr Current Current 3rd Party CPU DSS Proxy Scans Corres 45 million images of 60 Legacy Legacy million converted Mellon Mellon 39. Analyst Briefing of Computersha
Slide 40: Question Time
Investor & Analyst Briefing For personal use only Question Time Mark Davis & Stuart Irving Joint Heads of Shareowner Services 21 March 2013
Slide 41: Business Overview: Asia
Investor & Analyst Briefing For personal use only Business Overview: Asia James Wong Head of Computershare Asia 21 March 2013
Slide 42: Asia Hong Kong
Regional Overview: Asia Hong Kong For personal use only State of play › Fundraising and other corporate actions remain quiet as investors remain cautious, but some signs of activity picking up since December. › Launched first B Shares to H Shares conversion and working on others. › Drafting of Scrip
Slide 43: Asia China
Regional Overview: Asia China For personal use only State of play › Effectively utilised our presence in China to stay close to our important customers. › Slowly building a sales presence in Shanghai. › Conducted a series of Plans seminars and generated good interest. › CSRC lowered hurdle of Chines
Slide 44: Asia India
Regional Overview: Asia India For personal use only State of play › New IPOs emerging but take up remains slow. › SEBI making efforts in improving the funds industry environment and encouraging more activities beyond the big cities. › Expanding into new areas such as e-governance leveraging on BPO e
Slide 45: Asia Japan
Regional Overview: Asia Japan For personal use only State of play › Corporate activities remain low. › Acquired small book of ID business from a local competitor. › Fast Yen depreciation may tip the balance to break out of the deflationary cycle. Challenges & opportunities › Product integration and
Slide 46: Question Time
Investor & Analyst Briefing For personal use only Question Time James Wong Head of Computershare Asia March 2013
Slide 47: 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 21 March 2013
Slide 48: Investor Services - Australia
Regional Overview: Australia and New Zealand Investor Services - Australia For personal use only State of play › Rated #1 in 2013 Australian Registry Services Provider Survey. › Continue to lead market (62% of ASX50; 59% of ASX200). › Continue to win the large and/or complex corporate actions that a
Slide 49: Investor Services – New Zealand
Regional Overview: Australia and New Zealand Investor Services – New Zealand For personal use only State of play › Market leader with around 66% of market. › Successfully managed the Fonterra listing. › Mighty River Power IPO main focus over coming months. Challenges & opportunities › The remaining
Slide 50: Communication Services
Regional Overview: Australia and 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. › Continuous inkjet printer now in Brisbane to add to Melbourne
Slide 51: Plan Managers
Regional Overview: Australia and New Zealand Plan Managers For personal use only State of play › Continues to be the market leader in Australia. › Reputation for ability to roll-out global plans. › Production of 200,000 tax statements within 9 business days as part of end of financial year reporting
Slide 52: Proxy Solicitation
Regional Overview: Australia and New Zealand Proxy Solicitation For personal use only State of play › Market leader in Australia. › Engaged in most major recent corporate actions e.g. Consolidated Media’s acquisition by News, Woolworths spin-off and EGM. Challenges & opportunities › Although M&A act
Slide 53: Fund Services
Regional Overview: Australia and New Zealand Fund Services For personal use only State of play › Focus has been on service delivery for new business onboarded in 2012. › CFS operations have moved under centralised model better enabling leverage of broader CPU learnings and processes. Challenges & op
Slide 54: Serviceworks
Regional Overview: Australia and New Zealand Serviceworks For personal use only State of play › CPU ownership now 18 months - integration largely complete. › Some good new client and project wins. Revenue growth and pipeline remains strong. › Focus on cost management and operational efficiencies con
Slide 55: Digital Post Australia
Regional Overview: Australia and New Zealand Digital Post Australia For personal use only State of play › 80% CPU/20% Zumbox JV – CPU acquired Fuji Xerox interest in Dec 2012. › First digital mail service in Australia running live and able to deliver › Private launch held in 2012 for employees of CP
Slide 56: Question Time
Investor & Analyst Briefing For personal use only Question Time Scott Cameron Head of Computershare Australia and New Zealand 21 March 2013
Slide 57: Lunch
Investor & Analyst Briefing For personal use only LUNCH
Slide 58: Business Overview: Specialized Loan Servicing (SLS)
Investor & Analyst Briefing For personal use only Business Overview: Specialized Loan Servicing (SLS) John Beggins & Toby Wells Specialized Loan Servicing Management 21 March 2013
Slide 59: US Strategic Perspective
Business Overview: Specialized Loan Servicing US Strategic Perspective For personal use only Objective › Identify a new business line where our skills, infrastructure and client relationships can add significant value and that can grow to be a material contributor to the Group. › Learn lessons (good
Slide 60: US Strategic Perspective: Integration into Computershare
Business Overview: Specialized Loan Servicing US Strategic Perspective For personal use only Integration into Computershare › Stage 1: begin migration of shared services such as legal, compliance, finance, HR, marketing, IT infrastructure, etc. › Stage 2: determine where cost efficiencies and produc
Slide 61: What is Mortgage Servicing?
Business Overview: Specialized Loan Servicing What is Mortgage Servicing? For personal use only › Mortgage Servicing is the management and administration of mortgage loans and adherence with loan documents and various regulatory requirements. Mortgage Servicing includes: › Billing, collection and pr
Slide 62: History of Mortgage Servicing
Business Overview: Specialized Loan Servicing History of Mortgage Servicing For personal use only › US mortgage industry started in small community banks that originated and serviced loans. › As banking consolidated and ownership of loans expanded to national banks, mortgage servicing operations wer
Slide 63: History of Mortgage Servicing, Cont’d.
Business Overview: Specialized Loan Servicing History of Mortgage Servicing, Cont’d. For personal use only › In an effort to maximise values, many of these loan products were directed to large low-cost service providers that were ill-equipped to deal with the large volume of defaulted loans. › Conse
Slide 64: Three Primary Types of Servicers
Business Overview: Specialized Loan Servicing Three Primary Types of Servicers For personal use only › Captive Servicers: › Generally bank-owned and service loans that are either originator owned or sold to third parties with servicing retained by the captive servicer. › Customer retention. › Cross-
Slide 65: Servicing Types
Business Overview: Specialized Loan Servicing Servicing Types For personal use only › Agency Servicing (Fannie Mae, Freddie Mac and Ginnie Mae) - Generally higher credit quality and conventional/conforming loans. › Low risk of default. › Low cost to service and minimal servicing advance requirements
Slide 66: Servicing Types, Cont’d.
Business Overview: Specialized Loan Servicing Servicing Types, Cont’d. For personal use only › Private Securitizations – generally lower credit quality and/or higher loan-to-value non-conventional/non-conforming loans. › High risk of default. › High cost to service and high advance requirements. › H
Slide 67: Servicing Types, Cont’d.
Business Overview: Specialized Loan Servicing Servicing Types, Cont’d. For personal use only › Whole Loans – generally not securitised, and owned by a single investor, which tends to be a hedge fund or financial institution that does not have captive or affiliated servicers. › Whole loan portfolios
Slide 68: Current State of the U.S. Mortgage Servicing Market
Business Overview: Specialized Loan Servicing Current State of the U.S. Mortgage Servicing Market For personal use only › Financial institutions continue to re-evaluate their business models. › Heightened regulatory landscape. › National Servicing Standards, Consumer Finance Protection Bureau, Basel
Slide 69: Regulatory Environment
Business Overview: Specialized Loan Servicing Regulatory Environment For personal use only › The U.S. mortgage market has always been highly-regulated, but with the mortgage crisis of 2007, the industry is experiencing unprecedented regulatory changes. › Formation of a new federal regulator, Consume
Slide 70: SLS Structure
Business Overview: Specialized Loan Servicing SLS Structure For personal use only › SLS servicing operations structure: › Servicing operations: loan boarding, loan administration, customer service, collections, loss mitigation, bankruptcy and foreclosure. › Finance and business development: accounti
Slide 71: Current State of SLS
Business Overview: Specialized Loan Servicing Current State of SLS For personal use only › SLS is a well-known, high-quality special servicer with a proven track record of improving the performance of challenged portfolios. › The majority of our business comes from: › Owners of credit risk in privat
Slide 72: Growth Opportunities for SLS
Business Overview: Specialized Loan Servicing Growth Opportunities for SLS For personal use only › Continue to pursue direct subservicing and strategic MSR opportunities. › Continue to develop and expand capital partner relationships to assist in the acquisition of MSRs and enhance subservicing rela
Slide 73: Question Time
Investor & Analyst Briefing For personal use only Question Time John Beggins & Toby Wells Specialized Loan Servicing Management 21 March 2013
Slide 74: Business Overview: Canada
Investor & Analyst Briefing For personal use only Business Overview: Canada Wayne Newling Head of Computershare Canada 21 March 2013
Slide 75: Canada Investor Services
Regional Overview: Canada Investor Services For personal use only State of play › Focus remains on client retention, new business, margin income opportunities and cost control across the Transfer Agent and Corporate Actions business lines. › Continue to negotiate and re-sign major clients. › Corpora
Slide 76: Canada Corporate Trust
Regional Overview: Canada Corporate Trust For personal use only State of play › Steady activity in residential mortgage backed securities. This includes new covered bond initiatives. › Debt activity has been consistent with new and existing issuances. › Broker Registered Product holding up. › Defaul
Slide 77: Canada Communication Services
Regional Overview: Canada Communication Services For personal use only State of play › Continued steady growth in core commercial transactional revenues. › Strong quality and service management driving high satisfaction and retention. › Good cost control continues to balance pricing pressures. Chall
Slide 78: Canada Plan Managers
Regional Overview: Canada Plan Managers For personal use only State of play › Improved margins being driven by growing transactional activity combined with strong economies of scale. › Continue to lead marketplace in ESP recordkeeping and equity plan related trusteeships. › Focus continues on revenu
Slide 79: Canada Corporate Proxy
Regional Overview: Canada Corporate Proxy For personal use only State of play › M&A deal flow remains very low, as market activity is soft and sporadic. › Continued pricing pressures as issuers seek bids from multiple competitors. › Regulatory changes (majority voting, slate ballots, say on pay) hei
Slide 80: Question Time
Investor & Analyst Briefing For personal use only Question Time Wayne Newling Head of Computershare Canada 21 March 2013
Slide 81: Business Overview: United States of America
Investor & Analyst Briefing For personal use only Business Overview: United States of America Steven Rothbloom Head of Computershare USA 21 March 2013
Slide 82: USA Investor Services
Regional Overview: United States of America Investor Services For personal use only State of play › Strong client satisfaction (93%), recommendation rate (90%), and retention: over 200 contracts renewed/extended FYTD and <1% competitive losses. › Increase in dividend activity (special, accelerated,
Slide 83: USA Plan Managers
Regional Overview: United States of America Plan Managers For personal use only State of play › Made a strategic decision to re-enter the options space, continuing to grow both options and ESPP. › Since that decision, retention OK - lost a large client, offset by solid new business pipeline. › Clien
Slide 84: USA Communication Services
Regional Overview: United States of America Communication Services For personal use only State of play › Realising major surge of FY13 growth from integration of new business. › Redirect of BNY Mellon Shareowner Services outsourced work to CCS US. › Redirect of Specialized Loan Servicing work to CCS
Slide 85: KCC Bankruptcy & Class Action
Regional Overview: United States of America KCC Bankruptcy & Class Action For personal use only State of play › Bankruptcy activity very low. › Within limited market, # 1 in overall market share (34%) and in “mega” market (50%), including Hostess Brands, Kodak & ResCap. › Class Action proposal activ
Slide 86: Corporate Proxy Solicitation & Fund Services
Regional Overview: United States of America Corporate Proxy Solicitation & Fund Services For personal use only State of play › Overall Georgeson proxy business – annual meeting, proxy fights, and M&A – relatively flat year over year – slight uptick in corporate governance consulting. › M&A activity
Slide 87: Question Time
Investor & Analyst Briefing For personal use only Question Time Steven Rothbloom Head of Computershare USA 21 March 2013
Slide 88: Close
Investor & Analyst Briefing For personal use only Close