Computershare Limited · ASX:CPU
Computershare — Investor Day (March 2005)
61 slides from Computershare's investor day presentation, March 2005
Slide 1: Investors & Analyst Briefing March 2005
Computershare Investors & Analyst Briefing March 2005
Slide 2: Computershare Asia Pacific
Computershare Asia Pacific Stuart Crosby Group Managing Director Asia/Pacific Investor Presentation March 2005
Slide 3: Outline
Outline – Computershare Asia Pacific – Geographical spread – Markets, offerings and opportunities – Computershare Australia – Market overview – Business lines
Slide 4: Computershare Asia Pacific
Computershare Asia Pacific India -Investor Services Seoul - Mutual Funds - Analytics Distribution (SRG) Hong Kong -Investor Services -Plans Singapore - CRM (SRG) Manila -Markets Tech -Analytics Data Capture & Research New Zealand - Investor Services
Slide 5: Business lines by geography
Business lines by geography Aust. NZ HK India Manila Sing. Korea Japan Investor Services Plans Document Services Corporate Proxy Analytics Pepper Separate Business Unit Not Offered
Slide 6: Asia Pacific: Hong Kong, India, Malaysia
Computershare Asia Pacific Hong Kong • Mainly investor services, but growing plans opportunities (esp into China). • Developing analytics and proxy opportunities. • 80% market share, and dominant in large transactions (eg, Link REIT). Main competitor Tricor (owned by Bank of East Asia). • Hot IPO ma
Slide 7: Asia Pacific: New Zealand, Philippines, Korea
Computershare Asia Pacific New Zealand • Mainly investor services. • Unattractive tax environment for plans. Some analytics opportunities. • 90% market share in investor services. Sole competitor (BK) recently sold to NZX and ASX Perpetual (50% each), and new owners clearly have plans to move it up-
Slide 8: Asia Pacific: Japan, Singapore, China
Computershare Asia Pacific Japan • Analytics and proxy distribution arrangements with a range of market players. • Material interest from some investor services participants in CPU offering as the Japanese market opens up and dematerialises. Singapore • Mainly creative and client management for cust
Slide 9: Australia
Australia Melbourne -Global Head Office -Operations -Document Services -Investor Services -Plans -Analytics (SRG) -Pepper (SRG) Brisbane Perth - Investor Services -Investor Services - Document Services Sydney Adelaide -Investor Services -Document Services - Investor Services -Plans -Markets Technolo
Slide 10: Australia – market overview
Computershare Australia – market overview • Very high level of M&A and capital management activities. • Increased penetration of the Computershare “integrated solution”, especially in the M&A and IPO spaces. Examples include Westfield triple stapling (processing, print and mail, analytics and proxy)
Slide 11: Australia – by business line
Computershare Australia – by business line Investor Services • 65% market share. • Coming out of a period of aggressive price competition and hoping for more rational behaviour going forward. • Future ownership of main competitor (ASX Perpetual) uncertain and clear signs that it is limiting capital
Slide 12: Australia – by business line
Computershare Australia – by business line Plans • Dominant provider of premium share plan administration and promotion services. • Offering enhanced through improved on-line dealing services and Pepper-based plan promotion and education services. Georgeson Shareholder Communications • Dominant prov
Slide 13: Computershare EMEA
Computershare EMEA Rob Chapman Group Managing Director EMEA Investor Presentation March 2005
Slide 14: Outline
Outline – Computershare EMEA – Geographical spread – Markets, offerings and opportunities – Computershare EMEA – Business challenges – Market overview – Business opportunities
Slide 15: Computershare EMEA
Computershare EMEA .. . UK: London, Edinburgh, . Bristol, Channel Islands Ireland: Dublin Germany: Munich . Russia: Moscow Italy: Rome -Investor Services -Document Services -Plans -Analytics (SRG) South Africa: Johannesburg -Pepper (SRG) -Markets Technology -Investor Services -Corporate Actions -Pla
Slide 16: EMEA business lines by country
Computershare EMEA Channel South UK Ireland Islands Italy Russia Germany Africa Investor Services Plans Document Services Corporate Proxy Analytics Pepper Separate Business Unit as part of other services Not Offered
Slide 17: EMEA: UK
Computershare EMEA UK • Investor Services to 30% of FTSE 100 and 25% of registry market. • M&A activity has increased – gaining in excess of 40% of recent market activity. • Employee Share Plans a fragmented market – Computershare well positioned to service global corporations headquartered in UK (a
Slide 18: EMEA: UK
Computershare EMEA UK • Diversification into market sectors that utilise our core capabilities – such as CORGI (gas regulator); NHS (health care) and Gilts (HMT govt. bonds). • Analytics and proxy opportunities emerging in the UK market – significant interest. • Transition of GSC and Analytics to br
Slide 19: EMEA: Ireland and South Africa
Computershare EMEA Ireland • Mainly investor services with 90% market share. Sole competitor Capita. • Employee Share Plans business important due to global nature of clients – but not large. • IPO and M&A levels low in recent times – less than five significant transactions a year. • Potential to ex
Slide 20: EMEA: Germany and Russia
Computershare EMEA Germany • E Magin acquisition to strengthen AGM offering • Transfer of former JV registry service to German based service and CARE system – providing control and ability to review over-all go-to-market approach. Russia • Minority interest in NRC – ownership of 45% of the company a
Slide 21: EMEA: Channel Islands and Italy
Computershare EMEA Channel Islands • Joint venture with Rawlinson-Hunter to provide specialist off-shore Executive and Employee investment funds. • Linked closely to Employee Share Plans offered out of mainland UK. • Potential to expand into more specialist investment, plans and trust instruments be
Slide 22: EMEA – business challenges
Computershare EMEA – business challenges • Europe is still very much a collection of vastly differing markets – local knowledge is absolutely key. • Harmonisation of EU financial markets is likely but uncertain – Euroclear SSE project still some way off (2008/10). • Consolidation of exchanges / CSDs
Slide 23: EMEA – market overview
Computershare EMEA – market overview Expansion – building around the key market hubs Largely registered market Benelux is a bearer market NCSD is registrar for Sweden & Finland Home to some major issuers 20% owned by OM Opportunities in plans, SRG, Registered shares ADRs 2nd largest ADR market in Eu
Slide 24: EMEA – business opportunities
Computershare EMEA – business opportunities Hub Issues Approach France Culture; banking In short term, investigate potential acquisition of Issuer dominance; small registry Services business as starting point. Build up local team to market. increase Plans / SRG sales. Longer term operate to drive co
Slide 25: EMEA – business opportunities
Computershare EMEA – business opportunities • Aggressive pursuit of core Investor Service expansion in UK – realising potential of Equiserve and global propositions to global clients. • Expansion of service offerings in core markets through targeted acquisition, market consolidation and key account
Slide 26: Computershare North America
Computershare North America Steven Rothbloom Group Managing Director North America Investor Presentation March 2005
Slide 27: Outline
Outline – Computershare North America – Geographical spread – Canada – Market overview – Business lines – US – Market overview – Business lines – Fixed income services initiative
Slide 28: Computershare North America
Computershare North America North America –Investor Services –Employee Plans –Document Services –Mutual Fund Proxy Services –Corporate Proxy –Fixed Income Services –Analytics –Pepper –World Records
Slide 29: Canada
Canada Toronto, Richmond Hill Ontario Winnipeg Manitoba Halifax Nova Scotia Vancouver British Columbia Montreal Quebec Calgary Alberta
Slide 30: Canada
Canada Competitive landscape – Has remained status quo—environment is relatively stable – 62% transfer agent market share – 20% employee plans market share – One major competitor Highlights – Canada rule 54-101 enables TAs to mail to beneficial owners—ADP monopoly broken – Computershare helped drive
Slide 31: United States of America
United States of America Canton Massachusetts* Burr Ridge, NYC, Hauppauge Chicago New York Illinois Golden Colorado Shelton San Francisco Connecticut California Edison, Jersey City* Dallas New Jersey Texas Cleveland Ohio Rockville Maryland * Locations to be added upon close of EquiServe acquisition
Slide 32: US – Market Overview
US – Market Overview – Computershare’s uniqueness in the marketplace is being noticed – End-to-end service offering – Independent from any banks – Technological edge – Industry is consolidating – When EquiServe deal closes, Computershare will be the largest transfer agent in the US – A large Transfe
Slide 33: US – Highlights
US – Highlights – Recent wins include: – ALLTEL stock transfer – went live August 2004 – News Corporation stock transfer – went live November 2004 • Handled transition of listing from Australia to New York – Principal Financial Group stock transfer – went live January 2005 – A significant register f
Slide 34: US – Highlights
US – Highlights – And of course, McDonald’s Corporation – Won before EquiServe deal announced – Went live February 28, 2005 – Ronald even took a few shareholder calls!
Slide 35: US – Highlights
US – Highlights – Integration of Georgeson Shareholder and Transcentive – Georgeson Shareholder: – Mutual fund proxy business integrated into Alamo Direct to form Fund Services group – Corporate proxy services now part of global stakeholder relationship group – US TA support services (post-merger, e
Slide 36: US – Priorities
US – Priorities – Close EquiServe deal & integrate the business – Leverage knowledge, expertise and processing capability to grow business beyond TA and Plans – Fixed income services—newly launched in US to build on Canadian Trust expertise – CDS—commercial print/mail for credit unions, check printi
Slide 37: Computershare Stakeholder Relationship Group
Computershare Stakeholder Relationship Group Dr. Oliver Niedermaier CEO, Stakeholder Relationship Group Investor Presentation March 2005
Slide 38: Management of Global Business
Management of Global Business
Slide 39: A Corporate Perspective
A Corporate Perspective – Unleashing “hidden” value and the true potential of recent acquisitions – CPU further exploiting recently acquired assets in terms of skills, brands, technology, etc. – A global structure for a global businesses – Optimizing product offering and value for clients – Adding a
Slide 40: A Personal Perspective
A Personal Perspective – Building a global Stakeholder Communications-powerhouse – IR provider from data to high end advisory – “Communication-enabling” of an industry – “Technology-enabling” of an industry – Bringing Stakeholder approach to market – Giving SRG within the CPU group even greater sign
Slide 41: SRG: The Rationale
SRG: The Rationale “Georgeson” Investor Relations Powerhouse Georgeson Shareholder Proxy solicitation Pepper Computershare technologies Analytics Communications consultancy Premium IR data content Technology applications
Slide 42: SRG: The Rationale within CPU
SRG: The Rationale within CPU „Georgeson“ Investor Relations Powerhouse Georgeson Shareholder Proxy solicitation Pepper Computershare technologies Analytics Communications consultancy Premier IR data content Technology applications Computershare core annuity business – Structure to chase the M&A mon
Slide 43: IR Value Chain
IR Value Chain Data Distribution Campaigns Advisory Current SRG Assets: • Global • Database Applications • Proxy Solicitation • Investor Targeting Ownership • Data Reporting • Shareholder • Retail Communication Database • Shareholder ID Communications Strategy • Creative Design Future Revenue Growth
Slide 44: IR Value Chain – an example
IR Value Chain – an example Data Distribution Campaigns Advisory Example: - „Dissident Shareholder Group“ -Identifying - Multi channel - Targeted institutional - Financial PR/ beneficial holders; communication and retail campaign C-Suite advisory Vote predictions
Slide 45: Why is Computershare fit to build this business?
Why is Computershare fit to build this business? • A unique combination of technology, communications and content assets • Brand Strength: Georgeson, a 71 year old name, especially strong in the key market of the U.S. • An end to end product and service offering • Access to the Global Call Center an
Slide 46: Strategic Program in place
Strategic Program in place • Agenda 24: – Objective for the end of calendar year 2006 is to: Significantly increase the value of the business for CPU! How: – Aggressive revenue growth (proxy expansion, further regional pepper expansion, etc.) – Aggressive profitability growth towards high margin bus
Slide 47: Striving for uniqueness and sustainability in our business
Striving for uniqueness and sustainability in our business t a Di Da st rib ut • Longer Revenue Lock-in io • Natural Point of Contact n • Higher Profile Board level • Assist Registry/Plans wins Ad s v n is as ig o p ry a mn a ig C Ca mp
Slide 48: Key Priorities for next 6 months
Key Priorities for next 6 months • Significant investment in market positioning • Address some of the gaps in the M&A advisory space • Invest in the Global Data Repository (Institutional Ownership etc.) • Integrate offerings and bundling into client focused solutions (first focus on equiserve client
Slide 49: What is being said?
What is being said? Sydney Morning Herald “Australian share registry operator Computershare…” The Australian “..the world’s largest share registry and „Georgeson“ services company…” Investor Relations AFR Powerhouse ”global share registry manager Georgeson Computershare..” Shareholder Proxy solicita
Slide 50: Document Services Global Review
Computershare Document Services Global Review David Hynes Global Chairman CDS Investor Presentation March 2005
Slide 51: Agenda
Agenda – Story so far… – Overall Business Model – How it works for CPU – CDS – adding value… – Status of regional business units – Global Summary
Slide 52: Story so far…
Story so far… – Volumes internal/external have increased 3 fold since acquisition in 2000 – CDS had 3 stable facilities in 2 countries now has 10 in 4 countries (includes 2 Equiserve facilities) – CDS external revenue streams are constant and annuity based providing resistance against the peaks and
Slide 53: Overall Business Model – how it works for CPU
Overall Business Model – how it works for CPU – Start up viability: Internal volumes usually underpin 75% of startup cost base – Long term viability: Within 3-5 years reach a 50/50 split of internal/external revenue – Capability: External focus drives people skill, product and technology innovation
Slide 54: Overall Business Model – Growth Strategy
Overall Business Model – Growth Strategy – Internal sales - CIS/CPM - Outsourced Work – ensure no leakage - New Products – Quick Certs, Edgar filings, Quorum, Financial Print, Quarterly Reports – External sales - Targeted client segments: energy, insurance, financial - Leverage all CPU business unit
Slide 55: Overall Business Model – Lessons Learnt
Overall Business Model – Lessons Learnt – Inefficient in-house operations are the best targets for off-shore growth – Large customers are sticky – In Australia we have seen very little movement of large accounts – Large accounts have been won by using our Consultancy Methodology to provide tailored
Slide 56: CDS – adding value…
CDS – adding value… Additional purchases Delivery channel Payment methods statement marketing Benefit influencing selection of channel choice reduced costs influencing payment method choice increased revenue influencing purchase of additional products
Slide 57: Australian Market
Australian Market – Almost fully outsourced. Mature market – major competitors are listed players – Growing National Coverage model with acquisition in Perth (~20 % Market Share WA) – Electronic delivery sales strong – becoming a competitive advantage – Influence up-sell & cross-sell campaigns on tr
Slide 58: EMEA Market (UK)
EMEA Market (UK) – Expect market to grow with continued outsource trend – Looking for a UK acquisition to fast track growth – Other acquisition/greenfield opportunities exist in Ireland and South Africa – Strong focus on take-over of existing in-house operations – Added 4 Color Digital Print to Serv
Slide 59: US Market
US Market • Expect market to grow with continued outsource trend • Following Equiserve/Alamo Print and Mail facilities integration, we will come a significant player – volumes increase 5 fold with additional facilities providing a wider distribution model • External sales strategy is now effective i
Slide 60: Canadian Market
Canadian Market – Expect market to grow with continued outsource trend – Need to expand coverage model – Completing integration of Royal & SunAlliance print and mail environment into CDS – strong focus on next big deal (energy/utility sector) – Large registry market share is providing a constant sou
Slide 61: Global Summary
Global Summary – Current revenue split: 60% internal / 40% external – Global foot print - best in the world! – Tech Products - have global suite - deployed globally in Feb 05 – Win major clients to become a major player in each market – Sales opportunities – work with all CPU businesses to create hi