Slide 1: Financial Results for the Full Year Ended 30 June 2014
For personal use only COMPUTERSHARE LIMITED (ASX:CPU) FINANCIAL RESULTS FOR THE FULL YEAR ENDED 30 JUNE 2014 13 August 2014 NOTE: All figures (including comparatives) are presented in US Dollars (unless otherwise stated). The non-IFRS financial information contained within this document has not been
Slide 2: Market Announcement
MARKET ANNOUNCEMENT Melbourne, 13 August 2014 – Computershare Limited (ASX:CPU) today reported Statutory Basic Earnings per Share (EPS) of 45.20 cents for the twelve months ended 30 June 2014, an increase of 60.1% on FY13. Management Earnings per Share were 60.24 cents, an increase of 9.8% over the
Slide 3: Reconciliation of Statutory Results to Management Results
MARKET ANNOUNCEMENT Reconciliation of Statutory Results to Management Results FY14 USD 000’s Net profit after tax as per Statutory Results 251,401 For personal use only Management Adjustments (after tax) Amortisation Intangible assets amortisation 62,204 Strategic business initiatives Net gain on di
Slide 4: Market Announcement: Other Adjustments and Commentary
MARKET ANNOUNCEMENT Other Acquisition related expenses of $0.8 million were incurred associated with the Shareowner Services, Olympia and R&T acquisitions. An accounting gain of $2.3 million was recorded as a result of translation of foreign currency bank accounts. An acquisition accounting ad
Slide 5: CEO Commentary
MARKET ANNOUNCEMENT Computershare’s CEO, Stuart Irving, said, “It was a pleasing year in terms of our result outcomes and achieving what we set out to do at the start of the year. Earnings delivered were at the top end of our guidance despite a number of our businesses still facing challenging condi
Slide 6: Regional Results Commentary
MARKET ANNOUNCEMENT United Kingdom, Channel Islands, Ireland & Africa (UCIA) Revenues in the UCIA region grew 8.1% on pcp to $324.0 million and EBITDA grew 4.0% to $120.4 million. The investor services business revenues and earnings were higher year on year, particularly evident in the second half.
Slide 7: Balance Sheet Overview
MARKET ANNOUNCEMENT Balance Sheet Overview Total assets increased by $189.3 million from 30 June 2013 to $3,808.2 million as at 30 June 2014. Shareholder’s equity increased $136.3 million to $1,267.2 million over the same period. Net borrowings decreased to $1,199.2 million (from $1,257.3 million at
Slide 8: Outlook for Financial Year 2015
MARKET ANNOUNCEMENT Outlook for Financial Year 2015 Looking to the year ahead, lower yields on client balances and some short term headwinds are expected to be a drag on earnings, but the Company is seeing modest improvements in some of its key operating environments. Taking all factors into account
Slide 9: Full Year Results 2014 Presentation
Computershare Limited For personal use only Full Year Results 2014 Presentation Stuart Irving Mark Davis 13 August 2014 V1DIS
Slide 10: Introduction, CEO's Report, Financial Results
For personal use only Financial CEO’s Introduction Results Report 2
Slide 11: Introduction
Introduction For personal use only Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER V1DIS
Slide 12: Results Summary
Results Summary Statutory Results Introduction FY14 vs FY13 For personal use only Earnings per share (post NCI) 45.20 cents Up 60.1% Management results are used, along with other measures, to assess operating business performance. The Company Total Revenues $2,048.6m Up 0.1% believes that exclusion
Slide 13: Management Results Summary
Management Results Summary Introduction For personal use only FY 2014 @ FY FY 2014 FY 2013 v FY 2013 2013 exchange rates Management Earnings per share (post NCI) US 60.24 cents US 54.85 cents Up 9.8% US 59.86 cents Total Operating Revenue $2,022.6 $2,025.1 Down 0.1% $2,079.9 Operating Costs $1,480.9
Slide 14: Drivers Behind FY14 Financial Performance
Drivers Behind FY14 Financial Performance Introduction › Overall Register maintenance revenues were slightly down. The contributions from recent For personal use only acquisitions and modest improvements in shareholder activity were offset primarily by the strengthening US dollar. › Revenue in trans
Slide 15: Computershare Strengths
Computershare Strengths Introduction › Leading market position in all major markets for equity investor record-keeping and For personal use only employee stock plan administration based on: - sustainable advantages in technology, operations, domain knowledge and product development; - sustained qual
Slide 16: Guidance
Guidance Introduction For personal use only › Looking to the year ahead, lower yields on client balances and some short term headwinds are expected to be a drag on earnings, but we are seeing modest improvements in some of our key operating environments. Taking all factors into account we expect Man
Slide 17: Introduction, CEO's Report, Financial Results
For personal use only Financial CEO’s Introduction Results Report 9
Slide 18: Financial Results
Financial Results For personal use only Mark Davis CHIEF FINANCIAL OFFICER V1DIS
Slide 19: Group Financial Performance
Group Financial Performance Financial Results % variance FY 2014 FY 2013 2H 2014 1H 2014 2H 2013 1H 2013 For personal use only to FY 2013 Sales Revenue $2,011.4 $2,015.7 (0.2%) $1,040.3 $971.1 $1,041.1 $974.7 Interest & Other Income $11.2 $9.4 19.2% $5.4 $5.8 ($3.5) $12.9 Total Management Revenue $2
Slide 20: Management EPS
Management EPS Financial Results For personal use only 70 60.24 60 54.85 49.09 50 40 US Cents 30.83 29.41 30 26.87 27.98 26.00 23.09 20 10 0 2012 2013 2014 1H 2H FY 12
Slide 21: FY14 Management NPAT Analysis
FY14 Management NPAT Analysis Financial Results 350 For personal use only 340 5.9 3.3 1.9 1.3 0.4 2.9 7.6 7.6 330 4.6 3.7 36.9 320 USD M 310 335.0 300 304.9 290 280 FY13 EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - EBITDA - Tax Interest Dep'n & NCI FY14 NPAT USA Canada ANZ UCIA ASIA CEU Tec
Slide 22: Management Revenue & EBITDA
Management Revenue & EBITDA Half Year Comparisons Financial Results 1,200 60% For personal use only 1,037.3 1,037.5 1,045.7 987.6 976.9 1,000 50% 781.4 Revenue & EBITDA USD M 800 40% Operating Margin % 600 27.3% 30% 27.1% 26.2% 25.9% 23.9% 24.4% 400 20% 268.4 267.0 273.6 247.5 241.4 211.5 200 10% 0
Slide 23: Management Revenue Breakdown
Management Revenue Breakdown Financial Results For personal use only % variance Revenue Stream FY 2014 FY 2013 2H 2014 1H 2014 2H 2013 1H 2013 to FY 2013 Register Maintenance $821.9 $824.1 (0.3%) $432.3 $389.5 $429.4 $394.7 Corporate Actions $154.2 $169.4 (8.9%) $77.0 $77.2 $76.6 $92.8 Business Serv
Slide 24: Management Revenue & EBITDA – Regional Analysis
Management Revenue & EBITDA – Regional Analysis Half Year Comparisons Financial Results Revenue Breakdown EBITDA Breakdown For personal use only 1,200 300 273.6 268.4 267.0 1,037.3 1,037.5 1,045.7 987.6 976.9 247.5 241.4 1,000 99.5 250 43.6 110.5 102.2 44.3 43.5 97.0 90.0 211.5 50.8 45.1 781.4 800 2
Slide 25: Margin Income Analysis
Margin Income Analysis Financial Results For personal use only 200 18 16.7 180 15.4 16 14.4 14.0 160 13.6 14 12.1 140 12 117.4 120.0 120 USD Billion 104.9 105.8 10 USD Million 100 89.0 86.8 8 80 6 60 4 40 20 2 0 0 1H12 2H12 1H13 2H13 1H14 2H14 Margin Income Average balances AVERAGE MARKET CASH RATES
Slide 26: FY14 Client Balances: Interest Rate Exposure
FY14 Client Balances Interest Rate Exposure Financial Results For personal use only Average funds (USD 14.2b) held during FY14 CPU had an average of USD14.2b of client funds under management during FY14. No exposure 24% ($3.4b) For 24% ($3.4b) of the FY14 average client Exposure to funds under manag
Slide 27: FY14 Client Balances: Exposure and Currency
FY14 Client Balances Interest Rate Exposure and Currency Financial Results For personal use only Exposed Funds by Currency (FY14 Average Balances) Average exposed funds Average exposed funds balance prior to hedging balance net of hedging Other AUD Other AUD 4% ($0.5b) 3% ($0.3b) 4% ($0.3b) 4% ($0.3
Slide 28: Client Balances: Fixed and Floating Rate Term Deposits
Client Balances Fixed and Floating Rate Term Deposits Financial Results For personal use only 8,000 Floating Rate Deposits Fixed Rate Deposits 7,000 6,000 5,000 4,000 USD M 3,000 2,000 1,000 0 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 20
Slide 29: Total Management Operating Costs
Total Management Operating Costs Half Year Comparisons Financial Results For personal use only 900 790.2 800 768.9 771.6 746.3 709.2 700 196.8 168.3 196.2 193.4 164.9 600 569.9 500 132.0 USD M 400 300 593.4 577.9 572.7 578.3 544.3 437.9 200 100 0 1H12 2H12 1H13 2H13 1H14 2H14 Controllable Costs (exc
Slide 30: Management Operating Costs
Management Operating Costs Half Year Comparisons Financial Results For personal use only 450 373.2 370.4 365.9 361.6 400 352.1 350 290.4 300 USD M 250 196.8 196.2 193.4 168.3 164.9 200 131.9 132.0 129.4 123.1 122.6 117.8 150 89.9 100 60.6 47.7 44.3 43.3 41.4 39.2 37.4 37.3 37.1 36.9 30.3 20.7 50 0 C
Slide 31: Technology Costs
Technology Costs Continued Investment to Maintain Strategic Advantage Financial Results For personal use only 14% 13.1% 160 12.7% 12.1% 11.8% 11.8% 11.5% 12% 140 131.9 129.4 Technology costs as a % of revenue 122.6 6.2 123.1 5.7 117.8 120 7.2 4.9 10% 8.9 32.4 100 44.2 31.6 89.9 8% 45.8 30.2 USD M 2.
Slide 32: FY14 Operating Cash Flow Analysis
FY14 Operating Cash Flow Analysis Financial Results For personal use only 450 10.2 0.5 3.3 2.4 400 85.0 350 300 USD M 250 200 409.3 334.0 150 100 50 0 Net Operating Net Receipts & Loan Servicing Dividends & Interest Paid & Income Taxes Net Operating Cash Flow FY13 Payments Advances Interest Other Fi
Slide 33: Capital Expenditure vs. Depreciation
Capital Expenditure vs. Depreciation Financial Results 40 37.8 For personal use only 0.9 35 30 25.6 24.3 23.9 25 23.7 1.6 3.2 2.0 USD M 5.6 20 3.9 3.8 12.9 15 2.1 10.3 9.5 10 0.3 1.5 0.6 17.2 1.3 2.7 0.9 14.6 2.6 11.1 5 7.6 6.4 4.9 0 1H12 2H12 1H13 2H13 1H14 2H14 Information Technology Communication
Slide 34: Free Cash Flow
Free Cash Flow Financial Results For personal use only 250 217.4 200.8 200 188.2 191.9 146.4 150 133.3 USD M 100 50 30.1 23.6 20.2 10.0 6.3 10.2 0 1H12 2H12 1H13 2H13 1H14 2H14 Operating Cash Flows Cash outlay on Capital Expenditure Note: Excludes assets purchased through finance leases which are no
Slide 35: Balance Sheet at June 2014
Balance Sheet at 30 June 2014 Financial Results For personal use only Jun-14 Jun-13 Variance See ASX Appendix 4E as at 30 June 2014 for full details. USD M USD M Jun-14 to Jun-13 › Current assets increased Current Assets $1,117.5 $982.4 13.8% mainly due to SLS and other receivables as well as cash (
Slide 36: Key Financial Ratios
Key Financial Ratios Financial Results For personal use only EBITDA Interest Coverage Net Financial Indebtedness to EBITDA 14 3.5 12 3.0 10 2.5 Times 8 2.0 Times 13.2 6 1.5 2.92 2.86 2.72 9.5 2.47 8.6 2.26 2.13 4 7.3 7.7 8.4 1.0 2 0.5 0 0.0 1H12 2H12 1H13 2H13 1H14 2H14 1H12 2H12 1H13 2H13 1H14 2H14
Slide 37: Debt Facility Maturity Profile
Debt Facility Maturity Profile Financial Results Private Maturity Dates Debt Committed Bank Placement USD M Drawn Debt Facilities Debt Facility Facility For personal use only FY15 Dec-14 90.6 150.0 Mar-15 124.5 124.5 124.5 FY17 Mar-17 21.0 21.0 21.0 FY18 Jul-17 443.5 450.0 450.0 Feb-18 40.0 40.0 40.
Slide 38: Working Capital Management
Working Capital Management Financial Results For personal use only Days sales outstanding 50 48 45 45 45 43 42 42 40 35 30 No. Of Days 25 20 15 10 5 0 1H12 2H12 1H13 2H13 1H14 2H14 30
Slide 39: Return on Invested Capital vs. WACC and Return on Equity
Return On Invested Capital vs. WACC and Return on Equity Financial Results For personal use only 30% 28.01% 25.80% 25% 22.34% 20% 15.84% 16.38% 14.37% 15% 10% 8.97% 9.51% 8.61% 5% 0% FY12 FY13 FY14 WACC ROIC ROE • ROIC = (Mgt EBITDA less Depreciation less Income Tax expense)/(Total Debt add Total Eq
Slide 40: Equity Management
Equity Management Final Dividend of 15 cents (AU) Financial Results For personal use only EPS - Statutory US 45.20 cents EPS - Management US 60.24 cents Interim Dividend AU 14 cents (20% franked) Final Dividend AU 15 cents (20% franked) Current Yield* 2.3% * Based on 12 month dividend and share pric
Slide 41: Financial Summary – Final Remarks
Financial Summary – Final Remarks Financial Results › Trading conditions are still challenging across some business lines, but the group remains For personal use only well positioned to benefit from the improving economic environment. › Ongoing disciplined cost management continues to drive solid re
Slide 42: Introduction, CEO's Report, Financial Results
For personal use only Financial CEO’s Introduction Results Report 34
Slide 43: CEO's Report
CEO’s Report For personal use only Stuart Irving PRESIDENT & CHIEF EXECUTIVE OFFICER CEO PRESENTATION V1DIS
Slide 44: Group Strategy and Priorities
Group Strategy and Priorities CEO’s Report Our group strategy remains as it has been: For personal use only - Continue to seek acquisition and other growth opportunities where we can add value and enhance returns for our shareholders. - Improve our front office skills to protect and drive revenue. -
Slide 45: Delivery against strategy and priorities
Delivery against strategy and priorities CEO’s Report The Shareowner Services synergies are nearing completion and recent acquisitions are all For personal use only progressing well and meeting expected milestones. However, the opportunities for further acquisitions in our traditional registry space
Slide 46: Acquisitions update – Shareowner Services
Acquisitions update – Shareowner Services CEO’s Report › Synergy realisation continues to track in line with expectation. For personal use only › At 30 June 2014, 95% of total synergies have been achieved. Cumulative Cost Synergies (USD M) Cost to Realise Synergies (USD M) Expected realisation of Up
Slide 47: USA Update
USA Update CEO’s Report › The US continued to experience historically low interest rates but saw improvements in For personal use only both M&A activity and shareholder trading activity. › Shareowner Services and Loan Servicing integrations are now behind us both having surpassed our expectations an
Slide 48: Canada Update
Canada Update CEO’s Report For personal use only › Corporate Trust continues to grow despite the persistently low interest rate environment. › Corporate Actions deal flow remains soft, particularly IPOs. › Client retention continues to be the key priority for Investor Services, along with ongoing fo
Slide 49: UCIA Update
UCIA Update CEO’s Report › The integration of the Morgan Stanley Global Stock Plan business is progressing well and we remain on schedule to complete the migration of all clients by the end of For personal use only 2014. › Transactional volumes in Plan Managers continue to be positive. We have also
Slide 50: Continental Europe Update
Continental Europe Update CEO’s Report › In Italy, our Registry and Meeting Services business has been stable, but with no major For personal use only IPOs or EGMs this year, organic growth has been subdued. › While we have not seen an uplift in market activity in Germany, our Registry business has
Slide 51: Asia Update
Asia Update CEO’s Report For personal use only › The Hong Kong IPO market remains active, although application levels remain lack lustre. New issuer acquisition and cross-selling of services have both been very positive. › Growth in the employee share plan business remains strong and due to strength
Slide 52: Australia & New Zealand Update
Australia & New Zealand Update CEO’s Report › The Australian Investor Services business maintained its market leading position and a For personal use only number of important client contracts were renewed. › Improved market conditions resulted in appointments to a number of IPOs. Significant client
Slide 53: Full Year Results 2014 Presentation
Computershare Limited For personal use only Full Year Results 2014 Presentation Stuart Irving Mark Davis 13 August 2014 V1DIS
Slide 54: Appendix
For personal use only Appendix: Full Year Results 2014 Presentation 13 August 2014 46
Slide 55: Appendix 1: Group Comparisons
For personal use only Appendix 1: Group Comparisons Group Comparisons 47
Slide 56: Management Revenue
Management Revenue Half Year Comparisons Financial Results For personal use only 100% 3% 2% 2% 1% 2% 1% 9% 10% 10% 10% 10% 12% 90% 11% 12% 11% 13% 13% 80% 11% 5% 3% 4% 3% 4% 4% 70% 23% 24% 60% 19% 24% 25% 23% 50% 9% 9% 9% 7% 8% 7% 40% 30% 20% 43% 42% 41% 41% 40% 40% 10% 0% 1H12 2H12 1H13 2H13 1H14 2
Slide 57: Management Revenue by Product
Management Revenue by Product Half Year Comparisons Financial Results For personal use only 1,200 1,037.3 1,037.5 1,045.7 17.2 987.6 14.5 976.9 14.1 1,000 91.7 16.3 99.8 15.6 100.0 98.3 94.8 112.3 124.6 134.6 781.4 112.5 800 52.2 124.9 21.5 45.4 46.7 31.2 90.3 28.0 234.7 US D M 85.0 247.3 241.0 600
Slide 58: Management Revenue
Management Revenue Half Year Comparisons Financial Results 500 For personal use only 440.6 432.3 429.4 450 394.7 389.5 400 334.2 350 300 247.3 246.9 241.8 241.0 234.7 250 USD M 200 148.3 134.6 124.9 124.6 112.5 112.3 150 100.0 99.8 98.3 94.8 92.8 91.7 90.3 88.7 85.0 77.2 77.0 76.6 67.4 100 52.2 46.7
Slide 59: FY14 Management Revenue Regional Analysis
FY14 Management Revenue Regional Analysis Financial Results 450 For personal use only 406.5 400 350 262.4 300 250 USD M 200 133.0 128.7 119.8 150 106.1 74.0 73.9 73.8 100 69.2 66.7 59.5 57.4 56.2 51.9 33.5 31.5 26.3 24.1 23.8 50 16.6 16.6 16.0 15.4 11.7 10.9 10.7 6.0 5.9 5.5 5.0 4.6 3.8 3.8 3.6 2.7
Slide 60: Effective Tax Rate
Effective Tax Rate Statutory & Management Financial Results For personal use only 30% The group’s effective statutory tax rate is 21.8% for the full year ended 30 June 2014. The 25.1% group’s effective statutory tax 25% rate for the comparative prior 22.3% 22.6% 22.4% period was 16.6%. 21.8% 20% In
Slide 61: Appendix 2: Country Summaries
For personal use only Appendix 2: Country Summaries Country Summaries 53
Slide 62: Australia
Australia Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 250 80 74.7 218.3 71.9 71.5 211.3 71.0 69.3 68.2 67.8 198.1 70 64.5 63.9 189.0 188.5 187.9 200 56.5 55.7 60 53.0 150 50 AUD M AUD M 39.2 38.8 37.0 35.8 40 35.3 100 30 20.4 18.3 17.2 16.7 16.3 16.1
Slide 63: Hong Kong
Hong Kong Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 400 200 177.9 180 350 161.2 160.8 159.4 157.7 156.6 160 300 264.6 253.9 140 247.6 231.7 226.8 225.0 250 120 HKD M HKD M 200 100 72.5 80 150 50.6 60 46.2 46.0 40.3 100 36.5 36.1 31.3 40 28.0 20.8 16
Slide 64: India
India Half Year Comparison Financial Results 1,400 Total Revenue Revenue Breakdown For personal use only 1,600 1,451.3 1,140.5 1,200 1,299.1 1,255.4 1,400 1,127.5 940.0 1,000 895.8 1,200 1,018.5 998.0 723.0 1,000 800 660.0 INR M 632.5 INR M 800 600 600 356.1 336.0 330.6 400 292.9 292.7 260.0 400 200
Slide 65: United States
United States Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 600 250 215.1 210.4 208.8 196.0 468.1 500 455.2 452.5 184.9 200 437.9 407.2 400 150 131.2 131.1 116.7 USD M 112.5 USD M 112.0 107.0 300 217.7 100 200 48.8 45.2 40.0 38.8 37.9 37.9 50 35.0 34.4
Slide 66: Canada
Canada Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 120 50 46.7 110.2 46.3 108.8 103.5 43.2 45 98.6 96.9 40.2 94.0 39.0 100 38.7 38.1 37.8 40 37.2 36.8 34.8 32.7 35 80 30 CAD M CAD M 60 25 20 40 15 12.3 11.0 10.6 9.5 9.5 9.0 8.7 8.6 8.5 8.2 10 7.8 7.6
Slide 67: United Kingdom & Channel Islands
United Kingdom & Channel Islands Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 45 40.6 39.6 39.1 40 94.0 100 87.8 33.7 33.6 90 35 82.5 82.4 79.8 76.1 28.7 80 30 70 24.0 25 GBP M 21.5 GBP M 21.0 20.7 60 20.5 20.5 20.5 20.1 19.7 19.2 17.9 17.6 20 50 40 15
Slide 68: South Africa
South Africa Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 130.3 160 140 128.3 128.1 144.5 144.0 124.9 142.5 123.6 138.0 135.8 117.7 130.3 140 120 120 100 100 80 RAND M RAND M 80 60 60 40 40 20 20 7.8 7.5 7.4 7.2 7.2 7.1 6.0 5.4 3.8 3.5 3.5 3.4 2.9 2.6
Slide 69: Germany
Germany Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 30 14 27.7 27.1 12.4 25.7 11.6 12 25 10.4 9.5 10 20 8.4 8.4 8.3 16.0 15.4 8 7.4 EUR M EUR M 14.8 15 6.2 6 4.8 10 3.5 4 3.4 2.9 2.3 2.3 2.2 2.2 2.1 2.1 2.0 5 1.7 1.7 1.5 2 1.4 1.2 1.2 1.1 0.9 0.8 0.8
Slide 70: Russia
Russia Half Year Comparison Financial Results Total Revenue Revenue Breakdown For personal use only 600 500 430.6 450 403.5 393.5 500 450.3 400 353.3 421.2 418.5 342.5 340.1 350 373.8 363.4 361.2 400 300 RUB M RUB M 300 250 200 200 150 100 100 25.0 50 23.3 20.5 19.7 18.7 17.7 0 0 1H12 2H12 1H13 2H13
Slide 71: Appendix 3: Assumptions
Appendix 3: Assumptions Financial Results For personal use only Assumptions 63
Slide 72: Assumptions: FY14 Exchange Rates
Assumptions: FY14 Exchange Rates Financial Results Average exchange rates used to translate profit and loss to US dollars For personal use only USD 1.0000 AUD 1.09422 HKD 7.75614 NZD 1.21756 INR 61.56622 CAD 1.07060 GBP 0.61811 EUR 0.73834 RAND 10.35299 RUB 33.86180 AED 3.67313 DKK 5.50849 SEK 6.536
Slide 73: Important Notice: Forward looking statements
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