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: Wednesday, 18th March 200
Slide 2: Investor & Analyst Briefing
For personal use only Investor & Analyst Briefing Computershare Limited 18 March 2009
Slide 3: Welcome & introduction
For personal use only Investor & Analyst Briefing Stuart Crosby President & Chief Executive Officer Welcome & introduction
Slide 4: Market environment
Market environment For personal use only › Strong recurring revenue base offers significant protection › Margin income hit but good treasury management and hedges provide significant cushion › Restructuring and recapitalisation transactions also beneficial; expected to continue › Enterprise sales ap
Slide 5: KCC acquisition
KCC acquisition For personal use only › Acquiring Kurtzman Carson Consultants › Regulatory approval and closing expected in 2 to 4 weeks › A leading US corporate restructuring claims and noticing agent › US $19 million operating EBITDA in 2008 › Specialists in bankruptcy administration › Highly succ
Slide 6: Observations from first 60 days
For personal use only Investor & Analyst Briefing Peter Barker Chief Financial Officer Observations from first 60 days 18 March 2009
Slide 7: Background and why Computershare?
Background and why Computershare? For personal use only Background › 2 years BHP Billiton Singapore (Iron Ore, Met Coal Marketing) › 17 years in IT industry in Singapore, USA, the Netherlands, Ireland, UK, Sydney. Final role was Cisco Systems’ regional CFO Asia-Pacific › B.Comm (UQ), MBA (Heriot-Wat
Slide 8: Computershare's culture and fabric
Computershare’s culture and fabric For personal use only › Distributed model with limited “headquarters centricity” (ie tiny HQ) › Strong business accountability, manifested by: › EBITDA targets pushed down heavily to most levels › Decisions generally made as close to the ‘coalface’ as practical › ‘
Slide 9: CFO's particular areas of focus
CFO’s particular areas of focus For personal use only › Short term funding › Long term funding model / strategy › Margin income and strategy › Standardisation of finance and support back office operations: drive efficiencies, scale for growth 8. Analyst Briefing of Computershare Limited.
Slide 10: Interest rate sensitivity on core balances
Interest rate sensitivity on core balances For personal use only US$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 Hedged exposure -80 This graph outlines the sensitivity of northern hemisphere interest rate chang
Slide 11: Hedge lifecycles
Hedge lifecycles For personal use only Hedging of long term sustainable balances 100% 80% 60% 40% 20% 0% Jun '09 Jun '10 Jun '11 Jun '12 1 13 25 37 Total Hedging 10. Analyst Briefing of Computershare Limited.
Slide 12: Question Time
For personal use only Investor & Analyst Briefing Peter Barker Chief Financial Officer Question Time 18 March 2009
Slide 13: 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 18 March 2009
Slide 14: United States: Investor Services
Regional Overview: United States of America Investor Services For personal use only State of play › Represent the largest US companies (63% of Dow, 46% of Fortune 100) › Continued strong client satisfaction and loyalty › Successful deployment and uptake of new products (market order sales; internati
Slide 15: United States: Corporate Proxy Solicitation & Funds Services
Regional Overview: United States of America Corporate Proxy Solicitation & Funds Services For personal use only State of play › Georgeson No 1 M&A proxy solicitor/information agent (over 30% of M&A transactions tracked by Corporate Control Alert magazine) › CFS No 1 in mutual fund proxy, winning 70%
Slide 16: United States: Plan Managers & Plans Software
Regional Overview: United States of America Plan Managers & Plans Software For personal use only State of play › Plan Managers maintains market share and added 14 clients in 1H09 › Plans Software no. 1 in client satisfaction for in-house stock plan administration › 2 major releases of flagship Expre
Slide 17: United States: Communication Services
Regional Overview: United States of America Communication Services For personal use only State of play › Winning new commercial business in banking and other industries › Continue to provide integral support to registry and plans business in this critical area › Launched online document hosting and
Slide 18: United States: Bankruptcy and class action administration
Regional Overview: United States of America Bankruptcy and class action administration For personal use only State of play › A high-potential business in the current environment, with strong activity in both primary products › Acquired initial presence (Administar) in October 2007 › For Administar,
Slide 19: Question Time
For personal use only Investor & Analyst Briefing Steven Rothbloom Head of Computershare USA Question Time 18 March 2009
Slide 20: Business Overview: Canada
For personal use only Investor & Analyst Briefing Wayne Newling Head of Computershare Canada Business Overview Canada 18 March 2009
Slide 21: Canada: Investor Services
Regional Overview: Canada Investor Services For personal use only State of play › Client retention remains strong › Product development working well: tax free savings accounts (TFSA), self service direct registration for US issuers › Reduced M&A/IPO and transactional activity › Major focus on cost c
Slide 22: Canada: Corporate Trust
Regional Overview: Canada Corporate Trust For personal use only State of play › Despite market downturn, continue to hold strong market position › Debt under administration up 17% to ~ $1 trillion; winning most new business › Default levels increasing, driving revenue (debt restructuring, etc) › Foc
Slide 23: Canada: Communication Services
Regional Overview: Canada Communication Services For personal use only State of play › Steady growth continues › High quality being maintained › Significant IT investment in operational delivery to reduce risk and increase effectiveness › Successful assimilation of filing acquisition into existing b
Slide 24: Canada: Plan Managers
Regional Overview: Canada Plan Managers For personal use only State of play › Significant drop in market prices has cut trading activity › Companies curtailing equity plan offerings, but a rebound expected as executive pay mix changes from cash bonuses to equity based incentives › Cost base reduced
Slide 25: Canada: Proxy
Regional Overview: Canada Proxy For personal use only State of play › Market now has 3 players, Georgeson maintaining market share › Slow down in deal flow, cost base adjusted accordingly › Re-signed core business for this season › Georgeson sales team actively selling across Computershare lines of
Slide 26: Question Time
For personal use only Investor & Analyst Briefing Wayne Newling Head of Computershare Canada Question Time 18 March 2009
Slide 27: Business Overview: Asia
For personal use only Investor & Analyst Briefing James Wong Head of Computershare Asia Business Overview Asia 18 March 2009
Slide 28: Asia: Hong Kong
Regional Overview: Asia Hong Kong For personal use only State of play › IPO pipeline full but stalled › Some recapitalisation projects, but also fee pressure from clients under financial stress › New investor-directed products launched: web-based Investor Centre and eIPO pre-registration Challenges
Slide 29: Asia: China
Regional Overview: Asia China For personal use only State of play › Plan Managers (HK/China) migration to Beijing underway › Beijing presence already active in providing service to HK-listed Chinese companies, cross-selling proxy and plan manager services Challenges & opportunities › The potential l
Slide 30: Asia: India
Regional Overview: Asia India For personal use only State of play › Market conditions have affected IPO flow and also impacted fee income of mutual fund business, which is AUM based › Cost-cutting measures have been implemented Challenges & opportunities › New local IPO regulation could impact on vo
Slide 31: Asia: Japan
Regional Overview: Asia Japan For personal use only State of play › Joint venture with Mitsubishi UFJ continues to perform › Downturn in economy forced issuers to cut back › Reviewing our sales strategy to become more focused › Looking at introducing related new services Challenges & opportunities ›
Slide 32: Question Time
For personal use only Investor & Analyst Briefing James Wong Head of Computershare Asia Question Time 18 March 2009
Slide 33: Morning tea break
Investor & Analyst Briefing For personal use only Computershare Limited Morning tea break 18 March 2009
Slide 34: Business Overview: Australasia
For personal use only Investor & Analyst Briefing Mark Davis Head of Computershare Australasia Business Overview Australasia 18 March 2009
Slide 35: Australasia: Investor Services - Australia
Regional Overview: Australasia Investor Services - Australia For personal use only State of play › Continued market leadership with 60% market share › New products (investor centre, issuer online, intermediary online, investor vote, proxy watch, etc) well received › Continued good run of key client
Slide 36: Australasia: Investor Services - New Zealand
Regional Overview: Australasia Investor Services - New Zealand For personal use only State of play › Remain clear market leader but market is getting smaller › Ongoing emphasis on innovation and leveraging off new product releases (issuer online, investor centre, portfolio view) Challenges & opportu
Slide 37: Australasia: Communication Services
Regional Overview: Australasia Communication Services For personal use only State of play › Leading provider of specialised one to one communication solutions that integrate print and mail with electronic distribution › QMT integration on track › Volumes largely unaffected by market downturn given e
Slide 38: Australasia: Plan Managers
Regional Overview: Australasia Plan Managers For personal use only State of play › Clear market leader in Australia and organic growth continues › Business restructured in last 12 months and in good shape for future challenges › Global footprint key to many successes eg. Brambles, BHP › Solid recurr
Slide 39: Australasia: Proxy Solicitation
Regional Overview: Australasia Proxy Solicitation For personal use only State of play › Market leadership in Australia › Premium offering remains highly valued in the market (eg. Manchester Unity, BG, BHP, Dairy Farmers, WA Newspapers) Challenges & opportunities › Market conditions (M&A outlook rema
Slide 40: Australasia: Fund Services
Regional Overview: Australasia Fund Services For personal use only State of play › All clients migrated to Trust Architect System › Expansion of existing book of business › Major client business development pipeline Challenges & opportunities › Ongoing web and automation › Leveraging off renewed cos
Slide 41: Question Time
For personal use only Investor & Analyst Briefing Mark Davis Head of Computershare Australasia Question Time 18 March 2009
Slide 42: Business Overview: EMEA
For personal use only Investor & Analyst Briefing Chris Morris, Martyn Drake, Naz Sarkar EMEA Management Business Overview EMEA 18 March 2009
Slide 43: EMEA: Registry UK & Ireland
Regional Overview: EMEA Registry UK & Ireland For personal use only State of play › Capital raising and corporate re-organisation activities remain strong › Overall number of accounts in market have reduced through nationalisations › Our shareholder base down materially going forward, mostly through
Slide 44: EMEA: Business Services
Regional Overview: EMEA Business Services For personal use only State of play › Gilts – Increased activity with more auctions › Deposit Protection Scheme (DPS) – continues to perform well › Letting Protection Service – early days but good potential › Emissions Trading Scheme (ETS) – launches in Apri
Slide 45: EMEA: Plan Managers
Regional Overview: EMEA Plan Managers For personal use only State of play › Winning both new major clients and selling more work into existing clients › Winning about 50% of all new opportunities › Tax calculator is a competitive advantage › Costs are being well controlled Challenges & opportunities
Slide 46: EMEA: Communication Services
Regional Overview: EMEA Communication Services For personal use only State of play › Service levels have improved dramatically › Costs have been controlled effectively › Good revenue due to corporate action activity Challenges & opportunities › Commercial opportunities are challenging due to competi
Slide 47: EMEA: South Africa
Regional Overview: EMEA South Africa For personal use only State of play › Increased profitability diluted by lower Rand › Very successful Change a life bike ride from a charitable and profile point of view › Pan Africa opportunity progressing well Challenges & opportunities › Number 1 in the market
Slide 48: EMEA: Georgeson
Regional Overview: EMEA Georgeson For personal use only State of play › M&A market down considerably against last year › Shareholder activism and enhanced engagement on the rise › Companies fear shareholder backlash during the financial crisis › France and Netherlands going well, tough in Italy and
Slide 49: EMEA: IML
Regional Overview: EMEA IML For personal use only State of play › Parts of conference market down › AGM market increasing especially Europe › US business now consolidated in Minneapolis › Last 12 months we have acquired businesses in Belgium, Australia, US, South Africa and the Netherlands. › Organi
Slide 50: EMEA: VEM
Regional Overview: EMEA VEM For personal use only State of play › Chose the worst time to buy a bank › Losses have been written off › Now trading about break even › Very little corporate action work or IPOs › We now have a full banking licence › Moved into our offices Challenges & opportunities › Th
Slide 51: EMEA: Germany
Regional Overview: EMEA Germany For personal use only State of play › Registry going OK but mainly AGMs › Plans - big improvement, developed new system › Communications Services reorganised and now profitable › Governance Services going well Challenges & opportunities › With more shareholder activis
Slide 52: EMEA: Russia
Regional Overview: EMEA Russia For personal use only State of play › Been great until now, for the first time we see challenges ahead › Registry performing in line with expectations › Corporate action pipeline weakening › Transactional revenues reduced in line with market › Mutual fund TA linked to
Slide 53: EMEA: Governance Services
Regional Overview: EMEA Governance Services For personal use only State of play › Completed integration of Datacare and World Records › All clients now converted to new system called Global Equity Management Systems (GEMS) › Synergies have been realised ahead of budget › Leading global product › ICS
Slide 54: Question Time
For personal use only Investor & Analyst Briefing Chris Morris, Martyn Drake, Naz Sarkar EMEA Management Question Time 18 March 2009
Slide 55: Non Market Cycle Businesses: Busy Bees
For personal use only Investor & Analyst Briefing Penny Maclagan Executive Director Non Market Cycle Businesses: Busy Bees 18 March 2009
Slide 56: What does Busy Bees do?
What does Busy Bees do? It is a Childcare Voucher administrator For personal use only › Childcare vouchers : Government supported, tax effective, targeted employee benefit for provision of childcare services › Parents can direct pre tax pounds to authorised care providers for all children up to 16 y
Slide 57: How does it work?
How does it work? Busy Bees CV For personal use only d Pa un ef ym R en t Childcare Providers Employer Parents Parent Intentions Voucher Money 56. Analyst Briefing of Computershare Limited.
Slide 58: The competitive landscape
The competitive landscape For personal use only Good news: scope to grow with low penetration rates in many sectors The even better news: our position Sector Client Volume Market Penetration Ftse 100 16 16% Ftse 250 57 23% Fire & Rescue 16 23% Ambulance 20 35% NHS Trusts 226 48% Police Forces 23 50%
Slide 59: Why is it good for Computershare?
Why is it good for Computershare? It fits what we do For personal use only › Run a customer service centre › Record employee names, addresses & intentions › Manage money › Clients are corporations & public sector entities › Make payments, print vouchers › BUT with tools & processes ripe for improvem
Slide 60: What have we done?
What have we done? For personal use only › Installed Computershare people in major management and finance roles › Aligned the business structure with good customer services for all stakeholders › Setup a transition program with sufficient resource and control › Reviewed the business model and assump
Slide 61: Now the future: good news
Now the future: good news For personal use only › A new system: improved performance, stability and resilience. › fully integrated real-time self-serve processing › reduction in double-processing and manual workarounds › high quality data capture through existing Computershare tools › generic vouche
Slide 62: Question Time
For personal use only Investor & Analyst Briefing Penny Maclagan Executive Director Question Time 18 March 2009
Slide 63: Non Market Cycle Businesses: Kurtzman Carson Consultants LLC
For personal use only Investor & Analyst Briefing Steven Rothbloom Head of Computershare USA Non Market Cycle Businesses: Kurtzman Carson Consultants LLC 18 March 2009
Slide 64: What does KCC do?
What does KCC do? For personal use only › It is a claims and noticing agent for bankruptcy filings and corporate restructuring › The business derives its revenue from: › Billable hours based on a time tracking system used by all employees › Processing related to claims confirmations, voting tabulati
Slide 65: The competitive landscape
The competitive landscape For personal use only Top 2 are: › KCC › EPIQ Others include: › Garden City › BMC › Administar › Donlin Recano
Slide 66: Why is it good for Computershare?
Why is it good for Computershare? For personal use only › Clients are corporations › Decision makers are primarily law firms › Processing business and BPO as we are today › Utilises same infrastructure of print & mail, operations and call centres › Most significantly : › It is a great run business,
Slide 67: What have we done?
What have we done? For personal use only › We completed a very detailed due diligence of KCC and their entire business, infrastructure and growth prospects › We have already filed Hart Scott Rodino › We hope to close by month end
Slide 68: Now the future: good news
Now the future: good news For personal use only › Their current business, and pipeline is growing rapidly › We have a similar but much smaller business that can reap huge benefits when an orderly transition is complete › We will add a major service offering that is currently outsourced - proxy solic
Slide 69: Question Time
For personal use only Investor & Analyst Briefing Steven Rothbloom Head of Computershare USA Question Time 18 March 2009
Slide 70: Meeting Closed
Investor & Analyst Briefing For personal use only Computershare Limited Meeting Closed 18 March 2009