Slide 1: Investor & Analyst Briefing
For personal use only Investor & Analyst Briefing Computershare Limited 13 March 2008
Slide 2: Welcome
For personal use only Investor & Analyst Briefing Darren Murphy Head of Treasury and Investor Relations Welcome
Slide 3: Computershare Global Footprint
Computershare Global Footprint For personal use only 3. Analyst Briefing of Computershare Limited.
Slide 4: Introduction
For personal use only Investor & Analyst Briefing Stuart Crosby Chief Executive Officer Introduction 13 March 2008
Slide 5: Market Environment
Market Environment For personal use only › General slowdown in merger and acquisition activity › Obviously less merger and acquisition value than before the sub-prime › Biggest drop - private equity buy outs - long term benefit for Computershare › Corporate to corporate cash and equity deals still h
Slide 6: Interest Rates
Interest Rates For personal use only › Materially lower than recent peaks, especially in the United States, but also in other Northern hemisphere markets › As disclosed in ½ year results, significant hedging of core balances (about ½ of recent average daily balances) › Continue to grow capture of ba
Slide 7: Interest Rate Sensitivity on Core Balances
Interest Rate Sensitivity on Core Balances For personal use only US$m PBT 80 Impact 60 40 20 0 -3.00% -2.50% -2.00% -1.50% -1.00% -0.50% Current 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% -20 -40 -60 Exposure -80 Hedged exposure This graph outlines the sensitivity of northern hemisphere interest rate chang
Slide 8: Business Overview: United States of America
For personal use only Investor & Analyst Briefing Steven Rothbloom Head of Computershare USA Business Overview United States of America 13 March 2008
Slide 9: United States of America: State of Play
Regional Overview: United States of America For personal use only › State of Play › No. 1 or 2 ranking across all our core businesses › Phenomenal tax season, great momentum › Significant focus on new product and service enhancements › Cross-sell efforts paying big dividends › Adding top talent acro
Slide 10: United States of America: Major wins
Regional Overview: United States of America For personal use only › Major wins › Home Depot Dutch Auction >one of the largest in history › Proxy Solicitation for TXU Corporation Acquisition >the largest ever public-to-private transaction › Plans Software Services & Software in two prominent, complex
Slide 11: United States of America: Challenges and Opportunities
Regional Overview: United States of America For personal use only › Challenges and Opportunities › Consolidation/exiting/reshaping of competitors › Private equity no longer competing with us for acquisitions and taking clients › Renewed Acquisitions Focus › Computershare Executive Services (formerly
Slide 12: US Investor Services: State of Play
Regional Overview: United States of America Investor Services For personal use only › State of Play › Major market share of top-tier clients › Dow 30 – 63% › S&P 500 – 36% › Fortune 500 – 31% › Fiscal year to date: 110 new appointments › Awarded significant amount of IPO-related business › Acquired
Slide 13: US Investor Services: Challenges and Opportunities
Regional Overview: United States of America Investor Services For personal use only › Challenges and Opportunities › Implement quality methodology to: › Improve productivity › Reduce operating risks › Differentiate us in the marketplace › Market dynamics › New products and innovations › Cross-sell i
Slide 14: Corporate Actions and Asset Reunification Programs
Regional Overview: United States of America Corporate Actions and Asset Reunification Programs For personal use only › State of Play › Involved in more than 200 deals this FY to date › Several high profile M&A and private equity deals › Challenges and opportunities › M&A activity › Interest rate env
Slide 15: Corporate Proxy Solicitation and Funds Services
Regional Overview: United States of America Corporate Proxy Solicitation and Funds Services For personal use only › State of Play › Georgeson ranked No. 1 Merger and Acquisition proxy solicitor/information agent by Corporate Control Alert › 8th consecutive year at top › Over 30% of M&A transactions
Slide 16: Plan Managers and Plans Software
Regional Overview: United States of America Plan Managers and Plans Software For personal use only › State of Play Plan Managers › 27 new clients › Market share top-tier clients › Fortune 500 – 15% › S&P 500 – 14% Plans Software › 150 new clients › Enhanced version of flagship Express Options produc
Slide 17: Question Time
For personal use only Investor & Analyst Briefing Steven Rothbloom Head of Computershare USA Question Time 13 March 2008
Slide 18: Business Overview: Canada
For personal use only Investor & Analyst Briefing Wayne Newling Head of Computershare Canada Business Overview Canada 13 March 2008
Slide 19: Canada: State of Play
Regional Overview: Canada For personal use only › State of Play › National presence: Vancouver, Calgary, Toronto, Montreal, Halifax › Investor Services, Corporate Trust, Plans, Georgeson represented across all regions › Market leadership across all lines of business › Significant EBITDA growth over
Slide 20: Strategy: Canada
Regional Strategy: Canada For personal use only › Challenges and opportunities › Operational effectiveness/client retention › Acquisitions › New product introduction › Continued focus/development on risk management › M&A activity and interest rate environment
Slide 21: Canada Investor Services: State of Play
Regional Overview: Canada Investor Services For personal use only › State of Play › Strong year › Winning more than 63% of IPOs › Robust Corporate Actions › IPSCO sale to SSAB Stal > $7.7B › Prime West Energy Trust sale to ABU Dhabi NEC > valued $5B › CanWest Comms acquisition of Atlantis Alliance >
Slide 22: Canada Investor Services: Challenges
Regional Overview: Canada Investor Services For personal use only › Challenges › Regional T/As › Corporate actions >volume strong >value lower › Opportunities › Really benefiting from global operations initiatives › Ongoing centralization › Acquisitions › Global cross border transaction ability prov
Slide 23: Canada Corporate Trust: State of Play
Regional Overview: Canada Corporate Trust For personal use only › State of Play › Continuing to win mandates › Displaying strong predictable earnings › Ongoing margin enhancement › Seen as “industry experts” › Cost base remains flat through successful integration of acquisitions onto CPU platform ›
Slide 24: Canada Corporate Trust: Challenges
Regional Overview: Canada Corporate Trust For personal use only › Challenges › Consolidation of issuer companies and trusts could result in client loss › New debt and structured product issuances have slowed due to market uncertainty › Opportunities › Continued acquisition in local markets in both c
Slide 25: Canada Communication Services: State of Play
Regional Overview: Canada Communication Services For personal use only › State of Play › Successful in winning six commercial clients › Quality at all time high for both internal and external clients › Tapping into registry client base e.g. BNS, BMO and quarterly mailings for small cap market › Stro
Slide 26: Canada Communication Services: Challenges
Regional Overview: Canada Communication Services For personal use only › Challenges › Gaining foothold in commercial markets › Efficiently managing season spikes › Regulatory landscape changing › Opportunities › Strong commercial relationships and the opportunity to introduce new solutions to upsell
Slide 27: Question Time
For personal use only Investor & Analyst Briefing Wayne Newling Head of Computershare Canada Question Time 13 March 2008
Slide 28: Business Overview: Asia
For personal use only Investor & Analyst Briefing James Wong Head of Computershare Asia Business Overview Asia 13 March 2008
Slide 29: Asia: Hong Kong Review
Regional Overview: Asia Hong Kong For personal use only › Review › Main business line > Investor Services › Product extension through eIPO and allotment results hosting has enhanced business proposition and created pricing premium › Good growth for Plans business in Hong Kong › Also introduced Proxy
Slide 30: Asia: Hong Kong Threats and Opportunities
Regional Overview: Asia Hong Kong For personal use only › Threats and Opportunities › IPO pipeline from China influenced by macro economic control › Working on e-Comm initiative and applying for direct clearing system participation › HKEx shareholder communications initiatives offer new revenues › A
Slide 31: Asia: China Review
Regional Overview: Asia China For personal use only › Review › Beijing Office opened in Oct 2007> currently has two staff › Initially provides onshore customer service and regulatory liaison › Excellent relationship with regulators and market infrastructure 31. Analyst Briefing of Computershare Limi
Slide 32: Asia: China Threats and Opportunities
Regional Overview: Asia China For personal use only › Threats and Opportunities › Fast changing regulatory environment difficult to navigate › Plan to relocate Plan Managers China team to Beijing, and introducing proxy service to Chinese issuers › Helps secure Hong Kong’s lead by building a bridge b
Slide 33: Asia: India Review
Regional Overview: Asia India For personal use only › Review › 50:50 JV with Karvy Group › Biggest player in India in Investor Services and second biggest player in Fund Services › Our partner has strong distribution capability that helps to attract business 33. Analyst Briefing of Computershare Lim
Slide 34: Asia: India Threats and Opportunities
Regional Overview: Asia India For personal use only › Threats and Opportunities › Highly competitive but fast growing market > we are the only viable volume player › More consolidation possible but valuation expectations high 34. Analyst Briefing of Computershare Limited.
Slide 35: Asia: Japan Review
Regional Overview: Asia Japan For personal use only › Review › 50:50 JV with Mitsubishi UFJ Trust Bank › Main business lines – Shareholder ID and Corporate Proxy › We have invested more resources to strengthen this business for more volume throughput › More merger and acquisition deals seen as well
Slide 36: Question Time
For personal use only Investor & Analyst Briefing James Wong Head of Computershare Asia Question Time 13 March 2008
Slide 37: Notice and Access Proxy Distribution
For personal use only Investor & Analyst Briefing Paul Conn Head of Global Capital Markets Business Overview Notice and Access Proxy Distribution 13 March 2008
Slide 38: SEC Requires Internet Availability & Notification
SEC Requires Internet Availability & Notification “Shareholder Choice Regarding Proxy Materials” For personal use only › What is required by companies? › Proxy materials must be posted on a publicly-accessible Internet site other than EDGAR › Notification of availability must be provided to sharehol
Slide 39: SEC Requires Internet Availability & Notification: Effective dates
SEC Requires Internet Availability & Notification “Shareholder Choice Regarding Proxy Materials” For personal use only › Effective dates › January 1, 2008 for large accelerated filers ($700 mil US market value end of fiscal 2Q) › January 1, 2009 for all companies and registered investment companies
Slide 40: Computershare's ProxyAccess Services for Notice-Only Mailings
Computershare’s ProxyAccess Services for Notice-Only Mailings For personal use only ProxyAccess Basic ProxyAccess Plus Supplemental Services* optional services* Consultation and › Notice and access rule guidance › Delivery preference campaign › In-depth analysis of voting analysis › Cost savings ide
Slide 41: Computershare Notice Document
Computershare Notice Document For personal use only Issuer logo List of voting items L E M P SA Instructions to requests copies 41. Analyst Briefing of Computershare Limited.
Slide 42: Computershare Document Presentation Solution
Computershare Document Presentation Solution For personal use only Issuer logo and color Thumbnails of materials Animated link to secure voting site 42. Analyst Briefing of Computershare Limited.
Slide 43: Computershare Document Presentation Solution
Computershare Document Presentation Solution For personal use only • One-page and two-page magazine views with animated page turning 43. Analyst Briefing of Computershare Limited.
Slide 44: Computershare Client Participation: Early results
Computershare Client Participation For personal use only › Early results › Five clients have mailed notice-only to date › All pleased with results: › Company A fewer registered holders voted, quorum increased › Company B fewer registered holders voted, quorum decreased less than 1%, reduced print vo
Slide 45: Computershare Client Participation: Early results
Computershare Client Participation For personal use only › Early results › Fulfillment requests were less than 3% › 3 of the 5 used our online document presentation and hosting solution › Internet press cites success: www.environmentalleader.com/2007/12/10/new-sec-rule- saved-sun-500000-and-100-mill
Slide 46: Computershare Client Participation: Client adoption
Computershare Client Participation For personal use only › Client adoption for 2008 › 108 clients have decided to use our notice and access product › 37 Notice Only › 10 Mixed Mailings › 50 Full-Set Solution › Approximately 65% are using our hosting solution › Others required to comply intend to mai
Slide 47: Industry Trends
Industry Trends For personal use only › Voluntary “fall season” participation › Early adopters mailed only notices › Fulfillment requests in the 2-3% range › Type of meeting › Over 60% routine › About 30% included non-routine management proposal › Balance included non-routine shareholder proposal ›
Slide 48: Industry Trends
Industry Trends For personal use only › A recent independent survey of companies shows that for 2008 spring season: › Use of N&A › 24% plan to use notice-only or a stratified notice and full-set mailing › 51% will mail full-sets and post materials › 22% are undecided › 3% had already used N&A › Expe
Slide 49: Industry Trends
Industry Trends For personal use only › Increased participation in 2009+, as issuers and retail investors get comfortable with the Notice and Access environment. › Other key geographic markets to facilitate notice and access style shareholder communications to reduce costs for issuers, drive efficie
Slide 50: Question Time
For personal use only Investor & Analyst Briefing Paul Conn Head of Global Capital Markets Question Time 13 March 2008
Slide 51: Coffee Break
Investor & Analyst Briefing For personal use only Computershare Limited Coffee Break 13 March 2008
Slide 52: Business Overview: Australasia
For personal use only Investor & Analyst Briefing Mr Mark Davis Head of Computershare Australasia Business Overview Australasia 13 March 2008
Slide 53: Australasia: Sites and Business lines
Regional Overview: Australasia For personal use only › 9 Computershare Sites 5 Business lines › Perth (2) › Investor Services › Adelaide › Communication Services › Melbourne (2) › Plan Managers › Sydney (2) › Corporate Proxy › Brisbane › Fund Services. › Auckland 53. Analyst Briefing of Computershar
Slide 54: Investor Services Australia: State of Play
Regional Overview: Australasia Investor Services Australia For personal use only › State of Play › Market leader with approximately 60% market share › Capitalised well on strong market conditions › Range of key clients retained without tender at better rates › Challenges and Opportunities › Strong f
Slide 55: Investor Services New Zealand: State of Play
Regional Overview: Australasia Investor Services - New Zealand For personal use only › State of Play › Mature market with approximately 85% market share › Clear market leader › Focused on bringing ongoing innovation to market › Challenges and Opportunities › Market is small and getting smaller › New
Slide 56: Communication Services: State of Play
Regional Overview: Australasia Communication Services For personal use only › State of Play › Now become a leading provider of specialised one-to-one communication solutions that integrate print and mail with electronic solutions › Settled and strong management team › Permail acquisition outcomes ve
Slide 57: Plan Managers: State of Play
Regional Overview: Australasia Plan Managers For personal use only › State of Play › Clear market leader in Australia › Less opportunity in New Zealand due to absence of regulatory incentives › Global footprint key to our recent major successes eg. BHP › Continues to achieve good organic growth › Ch
Slide 58: Proxy Solicitation: State of Play
Regional Overview: Australasia Proxy Solicitation For personal use only › State of Play › Market leader in Australia having advised on over $160 billion of Merger and Acquisition transactions over the last few years › Premium offering recognised in the market and we are winning all the big jobs eg.
Slide 59: Fund Services: State of Play
Regional Overview: Australasia Fund Services For personal use only › State of Play › Retained anchor client › Bought new technology through Portfolio Server acquisition and so system strategy settled and now very close to roll out › We now have substantially greater industry knowledge and expertise
Slide 60: Question Time
For personal use only Investor & Analyst Briefing Mr Mark Davis Head of Computershare Australasia Question Time 13 March 2008
Slide 61: Business Overview: Germany>Austria>Switzerland
For personal use only Investor & Analyst Briefing Mr Steffen Herfurth Head of Computershare Germany Business Overview Germany>Austria>Switzerland 13 March 2008
Slide 62: Germany> Austria> Switzerland
Regional Overview: Germany> Austria> Switzerland For personal use only › With the acquisition of VEM we now have a lot higher market profile, and opportunity to cross sell other CPU products like Georgeson and Governance Services › Focussed on expanding our services into the bearer market › Germany
Slide 63: Registry & AGM: State of Play
Regional Overview: Germany> Austria> Switzerland Registry & AGM For personal use only › State of Play › Dominant position in AGM market with almost 400 clients and 27 out of 30 DAX companies › In registry business #1 by number of issuers, but not servicing companies with large shareholder base, mark
Slide 64: pictures
pictures For personal use only 64. Analyst Briefing of Computershare Limited.
Slide 65: pictures
pictures For personal use only 65. Analyst Briefing of Computershare Limited.
Slide 66: pictures
pictures For personal use only 66. Analyst Briefing of Computershare Limited.
Slide 67: pictures
pictures For personal use only 67. Analyst Briefing of Computershare Limited.
Slide 68: Registry & AGM: State of Play
Regional Overview: Germany> Austria> Switzerland Registry & AGM For personal use only › State of Play › Dominant position in AGM market with almost 400 clients and 27 out of 30 DAX companies › In registry business #1 by number of issuers, but not servicing companies with large shareholder base, mark
Slide 69: Communication Services: State of Play
Regional Overview: Germany> Austria> Switzerland Communication Services For personal use only › State of Play › Integration of 2 acquired print & mail businesses completed › CCS well positioned as provider for secure and transactional document outsourcing › Communication and Document Services market
Slide 70: Plans: State of Play
Regional Overview: Germany> Austria> Switzerland Plans For personal use only › State of Play › Up until 2006, only German banks (in co-operation with IT provider) visible as providers in Plans market › Plans market currently relatively small, but governmental initiatives underway › CPU launched new
Slide 71: VEM: State of Play
Regional Overview: Germany> Austria> Switzerland VEM For personal use only › State of Play › Germany’s leading corporate actions bank for SMEs (over 250 transactions since 1997) › Market leader in Designated Sponsoring › CPU’s stake ~92% › Challenges and Opportunities › Integrate CPU’s and VEM’s ser
Slide 72: VEM: Cross-Sell / Up-Sell opportunities (national)
Regional Overview: Germany> Austria> Switzerland VEM For personal use only › Cross-Sell / Up-Sell opportunities (national) › Registry business: influence companies at IPO to use registered shares to increase the take up of registered shares in the market › Ability to manage cash and stock on behalf
Slide 73: VEM: Cross-Sell / Up-Sell opportunities (international)
Regional Overview: Germany> Austria> Switzerland VEM For personal use only › Cross-Sell / Up-Sell opportunities (international) › Due to full Clearstream connectivity we can manage share transfers and cash payments on behalf of issuers inside Clearstream › Ability to access Euroclear directly or ind
Slide 74: Question Time
For personal use only Investor & Analyst Briefing Steffen Herfurth Head of Computershare Germany Question Time 13 March 2008
Slide 75: Business Overview: EMEA
For personal use only Investor & Analyst Briefing Chris Morris Head of EMEA Business Overview EMEA 13 March 2008
Slide 76: UK & Ireland: Structure
Regional Overview: UK & Ireland For personal use only › Structure › New structure in place, I will manage until end CY 2009 › Senior managers all in place and all UK residents › Some excellent next level management hired › Lloyds registry sold to Advent named Equiniti › Setup New Business Developmen
Slide 77: UK & Ireland Registry: State of Play
Regional Overview: UK & Ireland Registry For personal use only › State of Play › More rational pricing in the market › Still not number 1 but getting there › Challenges and Opportunities › Opportunity as Equiniti manages new owners and new system › Cross sell other CPU products to a blue chip client
Slide 78: UK & Ireland Business Services: State of Play
Regional Overview: UK & Ireland Business Services For personal use only › State of Play › NHS improved profitability › Gilts best client reference in the UK › Corgi > business as usual › DPS > Brilliant business > 90% on the internet › LPS > Letting Protection Services will launch April › Challenges
Slide 79: UK & Ireland Plans: State of Play
Regional Overview: UK & Ireland Plans For personal use only › State of Play › Number 1 in the UK › Global tax calculator live for Shell, other companies lined up › BHP voted best international plan › Released CPU broker accounts for trading and purchase of other products i.e. ISA › Introduced full s
Slide 80: UK & Ireland Georgeson: State of Play
Regional Overview: UK & Ireland Georgeson For personal use only › State of Play › Total restructure of Georgeson in EMEA now profitable › Increase in lost assets business (PMC), now using US system › Now in UK, South Africa, France, Germany, Spain and Italy › Challenges and Opportunities › Strong co
Slide 81: UK & Ireland Corporate Governance Services
Regional Overview: UK & Ireland Corporate Governance Services For personal use only › State of Play › Integration complete of Datacare and World Records › All development now done in Monahan (Ireland) › Released GEM best of both systems › Strong presence in NA & Europe weak in the UK › Challenges an
Slide 82: UK & Ireland IML: State of Play
Regional Overview: UK & Ireland IML For personal use only › State of Play › Rapid expansion › Purchased distributors in Australia, US, and Belgium › Still considered the number 1 product in the market globally › Large increase in marketing meetings › Setting up businesses in Germany and Hong Kong ›
Slide 83: UK & Ireland Communication Services UK
Regional Overview: UK & Ireland Communication Services UK For personal use only › State of Play › New Manager appointed › 90% of work is for registry and plans clients › Finally have work for colour printers › Challenges and Opportunities › Expand commercial work › Improved service levels 83. Analys
Slide 84: EMEA: South Africa and Russia
Regional Overview: EMEA For personal use only › South Africa › Maintaining profitability in spite of lower Rand › Increasing market share › Providing services to other CPU EMEA offices › Russia › Acquiring another 15% of NRC taking us to 80% › Options to buy other registry businesses › Huge opportun
Slide 85: Question Time
For personal use only Investor & Analyst Briefing Chris Morris Head of EMEA Question Time 13 March 2008
Slide 86: Meeting Closed
Investor & Analyst Briefing For personal use only Computershare Limited Meeting Closed 13 March 2008