Slide 1: Market Announcement: Investor and Analyst Briefing 2015
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 For personal use only MARKET ANNOUNCEMENT www.computershare.com Date: 26 March 2015 To: Austral
Slide 2: Welcome - Investor & Analyst Day 2015
Welcome For personal use only Investor & Analyst Day 2015 Stuart Irving CEO – Computershare Limited 26 March 2015 V1DIS
Slide 3: Business Overview - Asia
Investor & Analyst Briefing For personal use only Business Overview - Asia James Wong Head of Asia 26 March 2015 V1DIS
Slide 4: Asia: Investor Services - Hong Kong
Regional Overview - Asia Investor Services - Hong Kong For personal use only › State of play - IPO volumes remain steady but retail participation is still subdued - Improving registry and corporate actions revenues from growing client base on back of prior periods’ IPOs - Shanghai – Hong Kong Connec
Slide 5: Asia: Plan Managers - Hong Kong & China
Regional Overview - Asia Plan Managers - Hong Kong & China For personal use only › State of play - Leading provider in Asia with a client base of household names in Hong Kong and China - Continue to experience strong growth assisted by a healthy pipeline and registry relationships with trust assets
Slide 6: Asia: Shareholder Analytics & Proxy - Hong Kong
Regional Overview - Asia Shareholder Analytics & Proxy - Hong Kong For personal use only › State of play - Depository model provides opportunity for shareholder analytics/identification given opaque holding structures - We maintain a local sales front-end, leveraging off our Jersey City Analytics te
Slide 7: Asia: Investor Services & Mutual Funds - India
Regional Overview - Asia Investor Services & Mutual Funds - India For personal use only › State of play - New issue and government privatisation remains subdued despite marked improvement in market sentiment after the Modi election win - Benefitting from increased market AUM - Increased regulatory c
Slide 8: Business Overview – Australia & New Zealand
Investor & Analyst Briefing For personal use only Business Overview – Australia & New Zealand Scott Cameron Head of Australia & NZ 26 March 2015 V1DIS
Slide 9: Australia & New Zealand: Investor Services - Australia
Regional Overview – Australia & New Zealand Investor Services - Australia For personal use only › State of play - Continued leading position (70% of ASX 20; 58% of ASX 200) - Successfully executed on a number of high profile corporate actions including Medibank IPO; Healthscope IPO; David Jones take
Slide 10: Australia & New Zealand: Investor Services - New Zealand
Regional Overview – Australia & New Zealand Investor Services - New Zealand For personal use only › State of play - 58% of NZX 50 - Successfully completed the IPO of Genesis, the last of the trilogy of Government asset sales that also included Mighty River Power and Meridian Energy › Challenges and
Slide 11: Australia & New Zealand: Plan Managers
Regional Overview – Australia & New Zealand Plan Managers For personal use only › State of play - Market leader - Competitive win of QBE global share plan administration - Our own in-house share plan won an award at the Employee Ownership Australia and NZ Association’s 2014 award ceremony - Trading
Slide 12: Australia & New Zealand: Communication Services
Regional Overview – Australia & 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 digital solutions - Computershare’s communication services offering was critical to
Slide 13: Australia & New Zealand: Georgeson Proxy Solicitation
Regional Overview – Australia & New Zealand Georgeson Proxy Solicitation For personal use only › State of play - Market activity remains subdued - Involved in a number of high profile campaigns including CK ENV Investments Pty Ltd $2.37 billion takeover of Envestra Limited; Wotif.com Holdings Limite
Slide 14: Australia & New Zealand: Serviceworks
Regional Overview – Australia & New Zealand Serviceworks For personal use only › State of play - Ongoing CEO strategic review - Post the loss of APG (takeover by AGL) in 2014, Serviceworks’ focus has been on right sizing its cost base and successfully retaining (Horizon Power) and building the clien
Slide 15: Business Overview - Canada
Investor & Analyst Briefing For personal use only Business Overview - Canada Stuart Swartz Head of Canada 26 March 2015 V1DIS
Slide 16: Canada: Investor Services
Regional Overview – Canada Investor Services For personal use only › State of play - Established market leader and continuing to maintain client base - Clients acquired from Olympia now fully transitioned with synergy expectations met and client retention strong - While new issuer IPO activity is be
Slide 17: Canada: Corporate Trust
Regional Overview – Canada Corporate Trust For personal use only › State of play - Strong escrows, trusts, and MBS results offset weaker conditions in other products, such as debt trusteeships and warrants - Oil & Gas Royalty business revenue still on target for FY15, but some impact expected next y
Slide 18: Canada: Plan Managers
Regional Overview – Canada Plan Managers For personal use only › State of play - EOS, our new award based (Stock Options, Restricted Stock) administration platform, has been well received by the market with a number of high profile wins (Telus, Air Canada, CN Rail) - Transition and integration of th
Slide 19: Canada: Communication Services
Regional Overview – Canada Communication Services For personal use only › State of play - Continue to grow in depth and breadth of services provided to core banking and insurance clients - Enhancing Sales and Solutions team to drive more digital business - We remain a trusted provider for our client
Slide 20: Business Overview – Continental Europe
Investor & Analyst Briefing For personal use only Business Overview – Continental Europe Steffen Herfurth Head of Continental Europe 26 March 2015 V1DIS
Slide 21: Continental Europe: Investor Services - Germany
Regional Overview – Continental Europe Investor Services - Germany For personal use only › State of play - Predominantly AGM business providing services to 27 out of 30 DAX - Strong client retention with increasing high value add product penetration into a range of blue chip clients - Encouraging pe
Slide 22: Continental Europe: Investor Services - Italy
Regional Overview – Continental Europe Investor Services - Italy For personal use only › State of play - Acquisition of Istifid’s registry assets in January 2015 has further cemented our significant share of the FTSE MIB Index (Top 40 Italian Issuers) - IPO market still subdued - Introduction of new
Slide 23: Continental Europe: Investor Services - Russia
Regional Overview – Continental Europe Investor Services - Russia For personal use only › State of play - Leading market position and seen as a strong independent provider to the marketplace - Significant corporate action activity over recent months associated with market turmoil - Expanding product
Slide 24: Investor Services & Employee Plans - The Nordics
Regional Overview – Continental Europe Investor Services & Employee Plans - The Nordics For personal use only › State of Play - Computershare won all new IPO mandates in 2014 in the Danish market, including ISS Group (largest Nordic IPO since 2009) and the Forward Pharma raising (ADRs issued and lis
Slide 25: Continental Europe: Communication Services - Germany
Regional Overview – Continental Europe Communication Services - Germany For personal use only › State of play - Steady growth due to wins from our registry and AGM offerings and strategic registry – communication services work - Client satisfaction remains at very high levels - Successfully driving
Slide 26: European Regulatory and Infrastructure Developments
Regional Overview – Continental Europe European Regulatory and Infrastructure Developments For personal use only › Regulatory and market changes in Europe continue - Amendments to Shareholders Rights Directive (SRD) › Will change how investors and issuers communicate and impact some voting arrangeme
Slide 27: 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 26 March 2015 V1DIS
Slide 28: UCIA: Plan Managers
Regional Overview - UCIA Plan Managers For personal use only › State of play - The Morgan Stanley Global Share Plan Services integration was completed at the end of 2014 with strong client retention - An EMEA based plans structure has been established and has already started winning new business in
Slide 29: UCIA: Investor Services - Channel Islands
Regional Overview - UCIA Investor Services - Channel Islands For personal use only › State of play - Jersey Trusts continuing to be an attractive vehicle for the issue of Depositary Receipts for companies re-domiciling their HQ - Steady growth in use of offshore vehicles to support a Depositary Inte
Slide 30: UCIA: Investor Services - United Kingdom
Regional Overview – UCIA Investor Services - United Kingdom For personal use only › State of play - Contracts extended with a number of key FTSE100 customers i.e. HSBC Holdings, Rolls-Royce Holdings and Vodafone - Subdued IPO market, but we are maintaining our market share - Several notable corporat
Slide 31: Investor Services - Ireland
Regional Overview Investor Services - Ireland For personal use only › State of play - Exchange Traded Fund (ETF) activity in Ireland remains strong - Continuing flow of new clients for US Tax and Qualified Intermediary (QI) services - IPO activity tailed-off in second half of 2014 but we continue to
Slide 32: UCIA: Business Services – DPS/Gilts
Regional Overview - UCIA Business Services – DPS/Gilts For personal use only › State of play - Deposit Protection Service (DPS) continues to grow market share and is now the largest scheme in the UK - DPS Insured has established good foothold in the market and continues to outperform forecasts - UK
Slide 33: UCIA: Business Services – Voucher Services (CVS)
Regional Overview - UCIA Business Services – Voucher Services (CVS) For personal use only › State of play - Government appointed National Savings & Investments to be the sole provider of the new Tax-Free Childcare Scheme (TFC) - Existing childcare scheme will close to new entrants when TFC launches,
Slide 34: UCIA: Business Services – Mortgage Servicing (HML)
Regional Overview - UCIA Business Services – Mortgage Servicing (HML) For personal use only › State of play - UK mortgage market continues to strengthen, generating opportunities with both new entrants and mortgage asset acquirers - Computershare’s acquisition of HML well received by existing client
Slide 35: UCIA: Communication Services (CCS)
Regional Overview - UCIA Communication Services (CCS) For personal use only › State of play - CCS continues to add value to the wider UK business through its extended communications proposition - Acquisition of HML provides the business case to deploy global technology (Capturepoint) in the UK, open
Slide 36: UCIA: Investor Services – South Africa
Regional Overview - UCIA Investor Services – South Africa For personal use only › State of play - New listings are up; 25 for the full year and 15 in second half of 2014 of which we secured 19 and 12 respectively, maintaining our market share - Contracts renewed or extended with a number of clients,
Slide 37: UCIA: Georgeson - Corporate Proxy Solicitation
Regional Overview - UCIA Georgeson - Corporate Proxy Solicitation For personal use only › State of play - Shareholder activism picking up in most European markets including UK, France, Germany, Netherlands and Switzerland - Recurring AGM fees continuing to account for higher proportion of annual rev
Slide 38: Business Overview – United States of America
Investor & Analyst Briefing For personal use only Business Overview – United States of America Steven Rothbloom Head of USA 26 March 2015 V1DIS
Slide 39: United States: Investor Services
Regional Overview – United States of America Investor Services For personal use only › State of play - Leading market position (77% of Dow 30, 62% of S&P 500) and high client satisfaction levels - R&T integration completed as planned with client retention and synergies meeting expectations - Shareho
Slide 40: United States: Plan Managers
Regional Overview – United States of America Plan Managers For personal use only › State of play - Market leader in contributory style plans (ESPP) - Very competitive environment in options and restricted stock equity administration, dominated by wealth management players - Client satisfaction conti
Slide 41: United States: Specialized Loan Servicing (SLS)
Regional Overview – United States of America Specialized Loan Servicing (SLS) For personal use only › State of play - MSR activities have recently increased; continuing to evaluate and execute opportunities with MSR purchases - Executing on new origination servicing channels, both government-sponsor
Slide 42: United States: Georgeson Corporate Proxy and Fund Services
Regional Overview – United States of America Georgeson Corporate Proxy (GCP) and Fund Services (CFS) For personal use only › State of play - Increased shareholder activism, resulting in increased demand for GCP consultative services and solicitation efforts to defeat shareholder proposals - GCP rece
Slide 43: United States: Communication Services (CCS)
Regional Overview – United States of America Communication Services (CCS) For personal use only › State of play - Increased volume from commercial sales, including onboarding 2nd largest US commercial outsourcing client - Brought Long Island print mail operations onto CCS standard systems and proces
Slide 44: United States: Class Action & Bankruptcy Administration (KCC)
Regional Overview – United States of America Class Action & Bankruptcy Administration (KCC) For personal use only › State of play - Substantial growth in class action business - Starting to leverage global service model to extract cost benefit - New mass tort administration vertical launched as part
Slide 45: Business Overview: Specialized Loan Servicing (SLS)
Investor & Analyst Briefing For personal use only Business Overview: Specialized Loan Servicing (SLS) John Beggins – Head of SLS Toby Wells – Head of Finance, SLS 26 March 2015 V1DIS
Slide 46: SLS Overview
SLS Overview › Current Portfolio Snapshot For personal use only AS OF FEB 2015 AS OF FEB 2014 UPB* LOAN COUNT UPB* LOAN COUNT TOTAL $36.2B 338,000 $32.5B 288,000 NON AGENCY $33.8B 325,000 $31.3B 281,000 AGENCY $2.4B 13,000 $1.2B 7,000 * Unpaid Principal Balance › Highlights (over last 12 months) - I
Slide 47: Current US Mortgage Servicing Environment
Current US Mortgage Servicing Environment › Consumer Financial Protection Bureau (CFPB) servicing rules implemented For personal use only with ongoing clarifying guidance › Federal Housing Finance Agency (FHFA) requirements proposed for non-bank servicers › Banks continue to have appetite for transf
Slide 48: US Regulatory Impact
US Regulatory Impact › Velocity and size of MSR transactions impacted by regulatory environment For personal use only and non-bank scrutiny - Coincides with steady and balanced legacy portfolio growth for SLS › FHFA capital and liquidity requirements create more clarity for MSR market - Smaller serv
Slide 49: Non-Bank Servicer Challenges
Non-Bank Servicer Challenges › Several competitors recently under significant scrutiny by state and federal For personal use only regulators › Key themes: - Rapid growth combined with a continually evolving standard of servicing - The ability to implement and integrate technology and operational pro
Slide 50: SLS Growth Strategy
SLS Growth Strategy › Continue to take advantage of opportunities to acquire and/or For personal use only sub-service legacy MSR product, both with and without capital partners (on balance sheet) › Selectively acquire performing agency MSRs to establish credibility, experience and track record in th
Slide 51: Business Overview: Homeloan Management Limited (HML)
Investor & Analyst Briefing For personal use only Business Overview: Homeloan Management Limited (HML) Andrew Jones Head of HML 26 March 2015 V1DIS
Slide 52: Mortgage Servicing in UK and Ireland
Mortgage Servicing in UK and Ireland › HML established the UK mortgage servicing market in 1989 For personal use only › Over last 25 years, HML has seen several cycles of the mortgage market; originating £1bn per month in 2006 and managing 40,000 arrears cases by 2009 › Mortgage servicing in the UK
Slide 53: UK and Irish Mortgage Market Overview
UK and Irish Mortgage Market Overview › Only 5% of the £1.25 trillion UK mortgage market is outsourced versus over For personal use only 50% in the US › Range of factors are driving growth in outsourcing of mortgage servicing in the UK: - Continued growth in asset trade activity; £150B of assets are
Slide 54: HML Background
HML Background › UK’s largest third-party mortgage administrator (TPMA) with more than 25 For personal use only years experience › Over 1,250 staff primarily operating out of Skipton, Glasgow, Derry and also in Dublin › Servicing both GBP denominated assets and Euro denominated assets (Republic of I
Slide 55: SLS and HML
SLS and HML › SLS and HML both service performing and non performing mortgage assets For personal use only › USA servicing market segments into Agency, Securitizations and Whole Loans. UK and Ireland segment into Retail Banks, Securitizations and Whole Loans › Unlike the USA TPMA business, in the UK
Slide 56: Regulatory Environment
Regulatory Environment › The way that customers in mortgage arrears are dealt with is a key area of For personal use only focus for both UK (FCA) and Irish (CBI) regulators › Regulatory environment in UK is well established and the position of TPMAs is well understood › There continues to be a stead
Slide 57: HML Strategy For Growth
HML Strategy For Growth › Whilst the competitive landscape continues to intensify we remain positive For personal use only around the market opportunity › Following Computershare’s acquisition there are a range of opportunities to achieve synergies and improve operational efficiency through deployme
Slide 58: Important Notice: Forward Looking Statements
Important Notice Forward Looking Statements For personal use only › This presentation 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