Computershare Limited · ASX:CPU
Computershare — Macquarie Securities Australia and New Zealand Corporate Conference in Asia 2011
21 slides from Computershare's conference presentation, Aug 31, 2011
Slide 1: Market Announcement
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 www.computershare.com MARKET ANNOUNCEMENT For personal use only MARKET ANNOUNCEMENT Date: 31 Au
Slide 2: Computershare Limited - Macquarie Asia Conference
Computershare Limited For personal use only Stuart Crosby Chief Executive Officer Macquarie Asia Conference 31 August - 2 September 2011 Singapore & Hong Kong
Slide 3: About Computershare
About Computershare: For personal use only › Computershare (ASX:CPU) is a global leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialise in corporate trust services, tax voucher solutions, bankruptcy administratio
Slide 4: Where we operate
About Computershare: Where we operate For personal use only 3
Slide 5: Computershare Strengths
Computershare Strengths For personal use only › Strong balance sheet, low gearing and continued robust cash generation. › Diversification into counter and non cyclical businesses gives stability to revenue and profit base. › More than 70% of revenue recurring in nature. › Demonstrated ability to acq
Slide 6: Trading environment
Trading environment For personal use only › In a difficult environment, annuity revenue lines such as register maintenance, employee share plans, communications services, corporate trust (Canada), voucher services (UK) and the deposit protection scheme (UK) continue to hold up well. › Net margin inc
Slide 7: Results Highlights – FY11
Results Highlights – FY11 Management Adjusted Results For personal use only FY 2011 @ FY 2010 FY 2011 FY 2010 v FY 2010 exchange rates Management Earnings per share (post NCI) US 55.67 cents US 57.80 cents Down 3.7% US 54.09 cents Total Revenue $1,618.6 $1,619.6 Down 0.1% $1,566.5 Operating Expenses
Slide 8: Revenue & EBITDA Half Year Historical Comparisons
Revenue & EBITDA Half Year Historical Comparisons For personal use only 900 50% 837.6 807.5 812.1 800 783.0 781.0 45% 728.7 40% 700 Revenue & EBITDA (US$ million) 34.0% 35% 32.5% Operating Margin % 600 31.5% 30.5% 29.6% 29.1% 30% 500 25% 400 20% 300 274.8 238.6 236.9 236.1 246.0 247.6 15% 200 10% 10
Slide 9: FY 2011 Revenue & EBITDA Regional Analysis
FY 2011 Revenue & EBITDA Regional Analysis For personal use only Total Revenue breakdown EBITDA breakdown 13% 15% 20% 23% Australia & NZ Asia 10% UCIA 8% Continental Europe 32% USA Canada 27% 24% 19% 3% 6% 8
Slide 10: Margin Income & Client Balances Analyses
Margin Income & Client Balances Analyses For personal use only Margin Income Analysis Total funds (USD 10.2b) held 200.0 12.0 during FY11 11.2 Exposure to No 180.0 interest exposure rates 28% 10.0 42% ($2.8b) 160.0 ($4.3b) 8.8 140.0 9.2 7.2 8.0 8.2 120.0 US$ Billion US$ Million Effective 6.4 hedging
Slide 11: Exposed Funds & Hedges
Exposed Funds & Hedges For personal use only Exposed Funds by Currency (FY11 Average Balances) Total Exposed Funds Non-hedged Exposed Funds (both hedged and non-hedged) AUD Other 3% ($0.2b) AUD 7% ($0.6b) Other CAD 3% ($0.1b) CAD 12% ($0.6b) 16% ($1.2b) 14% ($0.6b) USD 30% ($2.2b) USD 31% ($1.3b) GB
Slide 12: Free Cash Flows and Technology Spend
Free Cash Flows and Technology Spend For personal use only 250 120 12.0% 10.7% 206.7 207.7 10.1% 10.3% 10.0% 9.9% 200 100 9.5% 10.0% Technology costs as a % of revenue 181.6 171.2 159.9 80 4.4 3.4 4.1 8.0% 148.4 3.9 2.7 150 US$ million US$ million 18.5 2.3 19.0 19.9 27.6 26.1 60 19.7 6.0% 100 23.2 2
Slide 13: Key Debt Ratios
Key Debt Ratios For personal use only › EBITDA Interest Coverage Net Financial Indebtedness to EBITDA 25.0 2.00 1.80 20.0 1.60 1.40 15.0 1.20 Times Times 1.00 22.1 22.3 1.72 1.67 10.0 0.80 17.0 1.42 1.40 1.42 1.35 15.1 0.60 13.3 5.0 10.4 0.40 0.20 0.0 0.00 1H09 2H09 1H10 2H10 1H11 2H11 1H09 2H09 1H1
Slide 14: Debt Facility Maturity Profile
Debt Facility Maturity Profile For personal use only Debt Committed Bank Private Placement Maturity Dates 600.0 ** Drawn Debt Facilities Debt Facility Facility FY12 Mar-12 123.0 123.0 123.0 550.0 FY13 Jul-12 550.0 550.0 May-13 297.7 300.0 300.0 FY14 May-14 140.0 300.0 300.0 500.0 FY15 Mar-15 124.5 1
Slide 15: Group Strategy and Priorities
Group Strategy and Priorities For personal use only Our group strategy remains as it has been: › Continue to drive operations quality and efficiency through measurement, benchmarking and technology. › Improve our front office skills to protect and drive revenue. › Continue to seek acquisition and ot
Slide 16: Delivery Against Strategy
Delivery Against Strategy For personal use only Delivering on the first 2 limbs of the strategy (cost & revenue) has been a key priority: › Operational productivity and quality continues to improve across the globe. › Revenue initiatives continue to offset to some extent revenue drag from GFC client
Slide 17: Details on integration (HBOS and ST) and acquisition (BMSS)
Details on integration – (HBOS and ST) and acquisition (BMSS) For personal use only › We continue to make good progress on integrating recently acquired businesses: › The HBOS EES business delivered significantly improved results in FY11 with further benefits expected in FY12. › ST delivered a bette
Slide 18: Details on acquisition - SWG
Details on acquisition - SWG For personal use only › SWG comprises 3 businesses: › Serviceworks: a provider of solutions to the Utilities sector in Australia (electricity, gas, water). › Connectnow: a provider of specialist home moving services to customers across Australia and New Zealand. › Switch
Slide 19: Details on acquisition - SLS
Details on acquisition - SLS For personal use only › SLS is a fee-based primary and special servicer of US residential mortgages. It is principally a sub-servicer but it does own some Mortgage Servicing Rights. › Loans serviced include first liens, subordinated and home equity lines of credit. › SLS
Slide 20: Other priorities - Market Position and Market Structure
Other priorities - Market Position and Market Structure For personal use only › We continue to enhance the quality of our operational and client directed processes, and to develop and launch new and enhanced products across the full range of our businesses. › Third party shareholder and issuer satis
Slide 21: Outlook FY12
Outlook FY12 For personal use only › Over the past few years, we have provided with our annual results guidance on expected performance in the forthcoming year (in management eps terms). › This year the impact and duration of the high market volatility was unclear, and this made us even more cautiou