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 For personal use only MARKET ANNOUNCEMENT www.computershare.com Date: 13 November 2013 To: Aust
Slide 2: Annual General Meeting of Computershare Limited
Annual General Meeting of For personal use only Computershare Limited 13 November 2013 V1DIS
Slide 3: Chairman Introduction
Annual General Meeting of For personal use only Computershare Limited Chris Morris Chairman Introduction V1DIS
Slide 4: The year in review
The year in review For personal use only › FY2013 environment very similar to FY2012: - Business environment remained very challenging - Realised significant synergies from the Shareowner Services acquisition during FY13 with material synergies still to come in FY14 - Remain acquisitive, purchasing
Slide 5: Board and Management changes
Board and Management changes For personal use only › No Director changes › Peter Barker, Group CFO left February 2013 › Mark Davis took over Group CFO role in July 2013 as advised at last year’s AGM 4. Annual General Meeting of Computershare Limited
Slide 6: Corporate Responsibility: Change a Life
Corporate Responsibility ‘Change a Life’ - Spend to date over $5 million For personal use only Projects Undertaken: Ethiopian Eye Clinic Ethiopia Phongsaly Health and Livehood Laos Highland Children's Education Project Cambodia Chad Farmer Regeneration Project Chad Sunrise Children's Village Cambodi
Slide 7: Corporate Responsibility: Third Sunrise Children's Village
Corporate Responsibility ‘Change a Life’ - Third Sunrise Children’s Village For personal use only › Grand opening of the Sunrise 3 village took place on 1st December 2012, World Aids Day › Ceremony was conducted by the Prime Minister of Cambodia, Hun Sen. 6. Annual General Meeting of Computershare L
Slide 8: Corporate Responsibility: Third Sunrise Children's Village
Corporate Responsibility ‘Change a Life’ - Third Sunrise Children’s Village For personal use only › Now have 70 children in the Sunrise 3 village › Planning to increase this to 120 children 7. Annual General Meeting of Computershare Limited
Slide 9: CEO Introduction
Annual General Meeting of For personal use only Computershare Limited Stuart Crosby Chief Executive Officer Introduction V1DIS
Slide 10: Headline earnings (USD)
Headline earnings (USD) › Total operating revenues – up 11.8% at 2,019.9 million For personal use only › Management EBITDA – up 11.1% at 509.8 million › Operating cash flows – down 0.2% at 334.0 million › Statutory net profit after NCI – down 9.2% at 157.0 million › Statutory EPS – down 9.2% at 28.2
Slide 11: Improving signs in underlying metrics
Improving signs in underlying metrics For personal use only › Management EBITDA margin 1,200 60% 1,000 50% - flat year on year at 25.2%, but a more 800 40% granular look shows it bottoming 2H12 - 600 30% this year we expect synergies from 400 20% acquisitions to continue to push it up 200 10% 0 0% 1
Slide 12: Dividends (AUD)
Dividends (AUD) › Interim – 14 cents 20% franked For personal use only Dividend and Franking % › Final – 14 cents 20% franked AU cents per share › Franking remains a challenge 14 14 14 14 14 14 14 14 because our revenues and 11 11 11 profits are mostly off-shore 10 › But currently expect to be able
Slide 13: 2013 Achievements
2013 Achievements › Completed Shareowner Services integration on time and with increased For personal use only synergy expectations › Completed HBOS EES plans business integration 6 months ahead of plan, allowing the team to roll into integrating the Morgan Stanley Smith Barney plans business acquir
Slide 14: Our revenue mix has changed dramatically since the GFC
Our revenue mix has changed dramatically since the GFC Total Revenue Segment Revenue USD millions For personal use only USD millions 600 489 500 383 400 Traditional non-transaction revenues flat 276 266 2,000 300 Except for Shareowner Services pickup across FY12 177 200 126 100 0 2008 2009 2010 2011
Slide 15: Three key themes for this new environment
Three key themes for this new environment › Protecting profitability in our mature businesses For personal use only - Continued quality building and a global operations model - Investing in complementary offerings - Maintain and maximise leverage to any recovery › Driving growth in businesses that o
Slide 16: Protecting mature businesses: global operation model
Protecting mature businesses Continued quality building and a global operation model For personal use only › Cost discipline remains at the core of our culture. But never at the expense of quality › Over the years, we have used a range of tools to build the quality and efficiency of our operational
Slide 17: Protecting mature businesses: complementary offerings
Protecting mature businesses Investing in complementary offerings For personal use only › INVeSHARE - Gives us exposure to the North American "street name" market for investor communications and other services to broker/dealers - a market segment that has lacked effective choice for a range of inves
Slide 18: Maintaining and maximising leverage to recovery
Protecting mature businesses Maintaining and maximising leverage to recovery USD millions Margin Balances – Term Deposits For personal use only 8,000 › Cost base lean from tough times – 30% headcount reduction from pre GFC 7,000 Floating Rate Deposits levels across major registry businesses Fixed Ra
Slide 19: Driving growth: loan servicing and utility back office
Driving growth Loan servicing For personal use only › Strong top line growth since acquiring SLS › Operating margins currently under some pressure from: - Integration and industrialisation expense (much of which is temporary) - Regulatory change adding costs and removing ancillary revenues but still
Slide 20: Driving growth: employee share plans
Driving growth Employee share plans For personal use only › Doubled revenues over past 5 years › Partly by acquisition but also good organic wins › Acquisition of Morgan Stanley European book late FY13 adds more momentum › China business also broadening its footprint › Strong market opportunity for
Slide 21: Simplifying the range of businesses
Simplifying the range of businesses Coming towards the end of a process to review all our businesses for strategic For personal use only fit and commercial contribution › Disposed of: - our Australian Fund Service business - originally planned to close down, but a buyer emerged after our results wer
Slide 22: Looking forward: Outlook
Looking forward Outlook For personal use only › In August, we said that we anticipated Management EPS for the full year FY14 to be around 5% higher than FY13 › While there are some encouraging early signs that the operating environment may be improving, we feel that changing guidance at this stage w
Slide 23: Important Notice
Important Notice Forward looking statements For personal use only › 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