Slide 1: 2017 Annual General Meeting: Delivering sustained earnings growth
For personal use only 2017 ANNUAL GENERAL MEETING Delivering sustained earnings growth 14 November 2017
Slide 2: Chairman's address
For personal use only 2017 ANNUAL GENERAL MEETING Chairman’s address Simon Jones 14 November 2017
Slide 3: FY17: A year of solid growth
For personal use only FY17: A year of solid growth Final Dividend Revenue 11.80% 10.60% Free Cash Flow 7.90% EBITDA 4.60% EPS 3.50% $362.2 $2.18 AU 19 $557.2 million billion cents 57.04 million cents 1 Management results are expressed in constant currency throughout this presentation unless otherwis
Slide 4: Key operational statistics
For personal use only Key operational statistics As at 30 June 2017 4 *includes Indian JV
Slide 5: Strong free cash flow drives shareholder returns
For personal use only Strong free cash flow drives shareholder returns › Consistent free cash flow self funds growth engines, strengthens the balance sheet and enables distributions to shareholders. 5
Slide 6: Consistent dividend track record
For personal use only Consistent dividend track record Full year dividend increased by 11.8% in FY17 6
Slide 7: Delivering strong returns for shareholders
For personal use only Delivering strong returns for shareholders CPU share price 7
Slide 8: Corporate responsibility
For personal use only Corporate responsibility 8
Slide 9: CEO's address
For personal use only 2017 ANNUAL GENERAL MEETING CEO’s address Stuart Irving 14 November 2017
Slide 10: Executive summary: FY17 results - upgraded guidance delivered
For personal use only Executive summary FY17 results - upgraded guidance delivered Management results1 Revenue EBITDA EPS $2,182.5m 10.6% $557.2m 4.6% 57.04 cents 3.5% Statutory EPS Free cash flow Dividend per share Actual Actual Final 48.76 cents2 70.8% $362.2m3 7.9% AU 19 cents 11.8% FY17 upgraded
Slide 11: Strategies driving performance and earnings potential
For personal use only Strategies driving performance and earnings potential 11
Slide 12: Growth: Mortgage services performing to plan
For personal use only Growth: Mortgage services performing to plan US › Execution of growth strategy on track › Strengthening relationships with government agencies creating new sizeable revenue opportunities › Structural market change positive for CPU with industry leading service quality driving n
Slide 13: US mortgage services - UPB and number of loans
For personal use only US mortgage services - UPB and number of loans $67.0bn UPB at end of October, +$7.3bn increase since the end of FY17 Performing Non-performing At 31 Oct 17 At 30 Jun 17 At 31 Oct 17 At 30 Jun 17 Fully-Owned $13.2BN $8.5BN $11.7BN $12.4BN MSRs 1 59K Loans 38K Loans 97K Loans 103
Slide 14: Growth: Employee share plans performing well
For personal use only Growth: Employee share plans performing well › Strong recovery in transactional volumes driven by improved equity market strength and currency volatility › Reduced margin income impacted by cut in UK interest rates and lower sharesave balances › Investment in customer facing te
Slide 15: Profitability: Structural cost out program on track
For personal use only Profitability: Structural cost out program on track Total cost savings Expected benefit realisation (cumulative) Activity estimates $m FY17 FY18 FY19 FY20 Stage 1 Louisville (unchanged) 25 - 30 28% 45% 70% 100% Stage 2 Spans of control ~15 45% 95% 100% Operational efficiencies
Slide 16: Profitability: Register Maintenance – margin expansion
For personal use only Profitability: Register Maintenance – margin expansion › Slight revenue decline with growth in Hong Kong and Canada offset by US, UK and Australia › Cyclically depressed Corporate Actions revenues (weakest since FY05) due to geopolitical uncertainty. Flow on effect to Register
Slide 17: Client balances and margin income
For personal use only Client balances and margin income Lowest yield in CPU history – turned positive in 2H17 18.0 16.0 16.6 16.8 16.3 15.1 15.2 15.0 14.0 14.4 14.0 12.0 Average Client Balances for period USD billion 105.8 10.0 86.8 89.4 8.0 86.4 79.0 74.3 6.0 69.6 66.6 4.0 2.0 0.0 1H14 2H14 1H15 2H
Slide 18: Capital management: Enhancing shareholder returns
For personal use only Capital management: Enhancing shareholder returns Recycling capital › Completed the disposal of the Company’s global headquarters in Melbourne and investment in INVeSHARE Inc (excluded from management earnings in FY17) › Subsequent to June 30th 2017, the Company announced the a
Slide 19: FY18 outlook - upgrade
For personal use only FY18 outlook - upgrade Guidance › In constant currency, Computershare expects FY18 Management EPS to increase by around +10% on FY17 (previously +7.5%) Assumptions › This outlook continues to assume that equity markets remain at current levels, interest rate markets remain in l
Slide 20: Conclusions
For personal use only Conclusions › Delivered on FY17 upgraded guidance despite cyclically depressed Corporate Actions revenues › Clear, deliberate strategies in place to grow Computershare, improve profitability and enhance shareholder returns with capital management › Entering period of sustained
Slide 21: 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