Computershare Limited · ASX:CPU
Computershare — Merger or Acquisition (August 2011)
14 slides from Computershare's merger presentation, Aug 23, 2011
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 www.computershare.com MARKET ANNOUNCEMENT MARKET ANNOUNCEMENT Date: 23 August 2011 To: Australi
Slide 2: Proposed acquisition of two businesses
Computershare Limited Proposed p acquisition q of two businesses: • Australian utilities services group Serviceworks • U.S. mortgage servicer Specialized Loan Servicing LLC Stuart Crosby - CEO Peter Barker - CFO 23 August 2011
Slide 3: Serviceworks Group
Serviceworks Group CERTAINTY | INGENUITY | ADVANTAGE €omputershare
Slide 4: Serviceworks Group acquisition Summary
Serviceworks Group acquisition Summary › Acquiring Serviceworks Group (SWG) for upfront consideration of AUD 54.3 million. Potential additional payments depending on performance f over the next 3 years. › The acquisition is not subject to regulatory approval or third party approval and is expected p
Slide 5: Serviceworks Group acquisition Background on SWG
Serviceworks Group acquisition Background on SWG › Serviceworks is a provider of solutions to retail utilities companies in Australia: › Services provided range from consulting to end-to-end back office administration (customer activation, billing, collection and communication). › Revenues are based
Slide 6: Serviceworks Group acquisition Strategic Fit
Serviceworks Group acquisition Strategic Fit › Significant opportunities to share infrastructure and resources, and to further integrate processes that SWG and Computershare already offer ff in partnership. › Being part of a larger group will enable SWG to realise its potential more quickly and with
Slide 7: Specialized Loan Servicing, LLC
Specialized Loan Servicing, LLC
Slide 8: Specialized Loan Servicing Acquisition Summary
Specialized Loan Servicing, LLC Acquisition Summary › Acquiring Specialized Loan Servicing, LLC (SLS) from Shinsei Bank (82.35%), an outside investor (2.65%), and management (15%) for f upfront f cash consideration of USD 113.6 million. Potential additional payments depending on performance over the
Slide 9: Specialized Loan Servicing Acquisition Background on SLS
Specialized Loan Servicing, LLC Acquisition Background on SLS › SLS is a primary and special servicer of US residential mortgage loans. It is primarily a sub-servicer but it does own some Mortgage Servicing Rights. › Loans serviced include first liens, subordinated and home equity lines of credit. ›
Slide 10: Specialized Loan Servicing Acquisition Strategic Fit
Specialized Loan Servicing, LLC Acquisition Strategic Fit › There are significant opportunities to share infrastructure and resources, and to integrate processes. › Being part of a larger group offers access to scalable infrastructure to support g growth. › Regulatory and other pressures are leading
Slide 11: SLS Acquisition Risk Management
Specialized Loan Servicing, LLC Acquisition Risk Management › As well as Computershare’s Computershare s usual operational, operational commercial, commercial IT and legal due diligence, much time has been spent understanding the capital, liquidity and regulatory risks to which loan servicing busine
Slide 12: Risk Management - Advances
Specialized Loan Servicing, LLC Acquisition Risk Management - Advances › If borrowers are late making payments, SLS can be obliged to cover those arrears. This obligation is in some cases limited to keeping taxes and insurances up to date. In other cases it also applies to the principal and mortgage
Slide 13: Risk Management – Mortgage Servicing Rights (MSRs)
Specialized Loan Servicing, LLC Acquisition Risk Management – Mortgage Servicing Rights (MSRs) › MSRs are an intangible asset, being the right to service a portfolio of mortgages. Volatility in the value off MSRs has created serious impairment and other issues ffor a range of organisations over time
Slide 14: Risk Management - Regulation
Specialized Loan Servicing, LLC Acquisition Risk Management - Regulation › SLS’s operations are subject to extensive regulation by federal, state and other governmental authorities. › SLS has a group dedicated to monitoring and addressing regulatory requirements. q › CPU took specific regulatory adv