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: Thursday 22 March 2012 To
Slide 2: Investor & Analyst Briefing
Investor & Analyst l Briefing i fi For personal use only Computershare Limited 22 March 2012
Slide 3: Welcome & Introduction
INVESTOR & ANALYST BRIEFING For personal use only W l Welcome & Introduction I t d ti Stuart Crosby President & Chief Executive Officer 22 March 2012
Slide 4: Business Overview: Australia and New Zealand
Investor & Analyst y Briefing g For personal use only Business Overview: Australia and New Zealand Scott Cameron Head of Computershare Australia and New Zealand 22 March 2012
Slide 5: Australia and New Zealand: Scott Cameron Biography
Regional Overview: Australia and New Zealand Scott Cameron For personal use only Biography g p y › Former Tax Partner at Ernst & Young in area of Financial Services › Joined CPU in 2005 as Head of Global Taxation & Accounting › 2008 – 2011 CFO for CPU’s CPU s Asia Pacific region › June 2011 appointe
Slide 6: Investor Services - Australia
Regional Overview: Australia and New Zealand Investor Services - Australia For personal use only State of play p y › Continue to lead market in Australia (60% plus of ASX 50/ASX 200) › M&A market subdued but winning those corporate actions that arise – Fosters/TWL demerger Barrick Gold demerger, Gol
Slide 7: Investor Services - New Zealand
Regional Overview: Australia and New Zealand Investor Services - New Zealand For personal use only State of play p y › Market leader with 70% of NZX 50 › Business has held up well despite flat corporate activity during FY12 › Won the IPO work for NZ Treasury’s Mixed Ownership Model (sale of SOE) pro
Slide 8: Communication Services
Regional Overview: Australia and New Zealand Communication Services For personal use only State of play p y › A leading provider of specialised inbound and outbound communication services that integrate print, mail and electronic solutions › Continuous inkjet colour printers: › Melbourne and Sydney
Slide 9: Plan Managers
Regional Overview: Australia and New Zealand Plan Managers For personal use only State of play p y › Continues to be the market leader in Australia › Reputation for ability to roll-out global plans enhanced with successful launch of Fletcher Buildings plan across multiple jurisdictions and thousands
Slide 10: Proxy Solicitation
Regional Overview: Australia and New Zealand Proxy Solicitation For personal use only State of play p y › Ongoing market leader in Australia › Engaged in most major recent corporate actions requiring solicitation e.g. Fosters takeover by SAB Miller Miller, Barrick Gold Gold’ss acquisition of Equinox
Slide 11: Fund Services
Regional Overview: Australia and New Zealand Fund Services For personal use only State of play p y › Specialist in unit trust and unlisted investment product registry administration. Moved business away from investment administration and fund accounting to focus on core unit registry › Development o
Slide 12: Serviceworks Group (SWG)
Regional Overview: Australia and New Zealand Serviceworks Group (SWG) For personal use only Background g › SWG established 11 years ago › Comprises 3 businesses: › Serviceworks (SW) – a provider of solutions to retail utilities (electricity, gas and water) sector in Australia ranging from consulting
Slide 13: Serviceworks Group: Strategic rationale
Regional Overview: Australia and New Zealand Serviceworks Group For personal use only Strategic g rationale › Non-core but has similarities to our business e.g. high volume BPO providing link between Utility Retailers (Issuers) and their Customers (Securityholders) › Global partner required to maxim
Slide 14: Serviceworks Group
Regional Overview: Australia and New Zealand Serviceworks Group For personal use only State of play p y › Excellent engagement from management and staff since acquisition › Integration milestones being achieved › Since acquisition, SWG growth from existing clients and new client on-boarding projects
Slide 15: Serviceworks Group: Challenges & opportunities
Regional Overview: Australia and New Zealand Serviceworks Group For personal use only Challenges g & opportunities pp › Ongoing integration › Operational and client on-boarding efficiencies › Product and technology development e.g. customer self service › Tier 1 retailers › Maximisation of CN and Sw
Slide 16: Introducing Computershare Digital Post Australia
INTRODUCING AUSTRALIA'S ONLINE POSTAL SERVICE €omputershare Digital Post yy Australia © DIGITAL POSTAL MAIL
Slide 17: Digital Post Australia (DPA)
Regional Overview: Australia and New Zealand Digital Post Australia (DPA) For personal use only State of play p y › DPA is Australia’s first digital mail service › Launched 14 March 2012 › JV between CPU (40%), (40%) Salmat (40%) and Zumbox (20%) › DPA has separate management team that reports to DP
Slide 18: Digital Postal Mail
Digital Postal Mail – Making Mail Easier... And accessible from anywhere! For personal use only 17. Investor & Analyst Briefing - Computershare Limited.
Slide 19: What is DPA
Regional Overview: Australia and New Zealand Digital Post Australia (DPA) For personal use only What is DPA › A nationwide paperless postal system for consumers › unlike email a closed system, restricted to verified mailers and individually verified consumers linked to a physical mailing address › A
Slide 20: Question Time
Investor & Analyst y Briefing g For personal use only Question Time S Scott C Cameron Head of Computershare Australia and New Zealand 22 March 2012
Slide 21: Business Overview: Asia
Investor & Analyst y Briefing g For personal use only Business Overview: Asia J James W Wong Head of Computershare Asia 22 March 2012
Slide 22: Asia: Hong Kong
Regional Overview: Asia Hong Kong For personal use only State of play p y › Fund raising and corporate actions remain active but investors more risk averse › Listed products and corporate actions getting increasingly complex, further highlighting our leading position › Worked with HKEx Listing Divis
Slide 23: Asia: China
Regional Overview: Asia China For personal use only State of play p y › Relocation of Sydney based Plans personnel completed and local recruits reached critical mass › Meeting services for Chinese listed companies has been successful since launch › Effectively utilized our presence in China to stay
Slide 24: Asia: India
Regional Overview: Asia India For personal use only State of play p y › Changes in Mutual Funds regulations making fund products a less attractive cash investment alternative › Hostile regulatory environment › New IPOs emerging but both flow and application volume subdued with price competition keen
Slide 25: Asia: Japan
Regional Overview: Asia Japan For personal use only State of play p y › Activist shareholders and opportunistic funds got fingers burned › Corporate fear level subsides, and price pressure on IR business in general › Need to move from fear to IR focus › Obtained ID business from other MUFG companies
Slide 26: Question Time
Investor & Analyst y Briefing g For personal use only Question Time J James W Wong Head of Computershare Asia 22 March 2012
Slide 27: Business & Integration Overview
Investor & Analyst y Briefing g For personal use only Business & Integration Overview M k Davis Mark D i & Stuart S IIrving i Co-Heads of Shareowner Services 22 March 2012
Slide 28: Shareowner Services - US: Recap of transaction
Regional Overview: Shareowner Services Shareowner Services - US For personal use only Recap p of the transaction › Cost $550m › Clearance received on 4 November 2011 › Transaction close achieved 31 December 2011 › We are 11 weeks in... Recap of the opportunity › Synergies at $72.5M › First six month
Slide 29: Shareowner Services - US: Statistics
Regional Overview: Shareowner Services Shareowner Services - US For personal use only Statistics - combined US Clients DOW 30 S&P 500 6 000 6,000 73 % 66 % ShareonerServices CPU 28. Investor & Analyst Briefing - Computershare Limited.
Slide 30: Shareowner Services - US: International
Regional Overview: Shareowner Services Shareowner Services - US For personal use only International India United States Seattle Delhi Makati, Boston Philippines Minneapolis Chennai Troy Hartford 270 Chicago New York City Philippines Pittsburgh Jersey City San Francisco Denver Manila St. Louis Los An
Slide 31: Other Benefits
Regional Overview: Shareowner Services Other Benefits For personal use only Other benefits › Outsourcing opportunities broader group › Best practice opportunities › Cross Sell › Communication Services › Georgeson › KCC › Governance Services › Global Solutions 30. Investor & Analyst Briefing - Comput
Slide 32: Key Risks
Regional Overview: Shareowner Services Key Risks For personal use only Client attrition › Client engagement has been high initial priority › Strong client management governance and framework exists › Client response to acquisition thus far has been very positive › Some client attrition experienced d
Slide 33: Key Risks: Service quality
Regional Overview: Shareowner Services Key Risks For personal use only Service quality q y › No conversions during 2012 Tax and Proxy Season › Strong focus on service delivery to ensure consistent CPU USA service experience › CPU US service quality and satisfaction at record highs 32. Investor & Ana
Slide 34: Shareowner Services Organization
Shareowner Services Organization For personal use only Computershare Limited S Stuart C Crosby b President & CEO Global Computershare U.S. Steven Rothbloom President & CEO U.S. Shareowner Services Stuart Irving Mark Davis CIO President Shared Services Global Shareowner Services Sales and Marketing R
Slide 35: Investor Services: Core program objectives
Regional Overview: Shareowner Services Investor Services For personal use only Summary y of core program p g objectives j DOJ Approval Process Transaction Close Minimal Day 1 Disruption Stock Options Business Analysis – March 2012 Debrand / Rebrand from BNYM Q2 2012 Convert clients to CPU IT infrast
Slide 36: Investor Services: Workstreams
Regional Overview: Shareowner Services Investor Services For personal use only Structure WORKSTREAMS Rebrand Project Stock Options Review Business Integration Project Client Migration Project Separation Project • Internal • Invest or Divest • OUTPUT (print / • GAP • Transition Services • External el
Slide 37: Synergies: How we will achieve synergies
Regional Overview: Shareowner Services Synergies For personal use only How we will achieve synergies y g › Technology › Operations Rationalisation › Facilities Rationalisation › Staff › I Insourcing i 36. Investor & Analyst Briefing - Computershare Limited.
Slide 38: Synergy timelines
Regional Overview: Shareowner Services Synergies For personal use only Synergy y gy timelines FY12 FY13 FY14 FY15 I Incremental t lEExpected t dSSynergies i 25 2.5m 25 0 25.0m 35 0 35.0m 10 0 10.0m Cumulative Expected Synergies 27.5m 62.5m 72.5m Costs to realise synergies We anticipate one off costs
Slide 39: Question Time
Investor & Analyst y Briefing g For personal use only Question Time M k Davis Mark D i & Stuart S IIrving i Co-Heads of Shareowner Services 22 March 2012
Slide 40: Business Overview: Canada
Investor & Analyst y Briefing g For personal use only Business Overview: Canada W Wayne N li Newling Head of Computershare Canada 22 March 2012
Slide 41: Canada: Investor Services
Regional Overview: Canada Investor Services For personal use only State of play p y › Focus remains on client retention/new business/cost control › Re-signing major clients to multi year contracts › Corporate Actions activity remains depressed › Client satisfaction remains high Challenges & opportun
Slide 42: Canada: Corporate Trust
Regional Overview: Canada Corporate Trust For personal use only State of play › Strong activity in residential d l mortgage backed b k d securities continues to yield ld strong results l › Debt activity has been consistent over the past year with new and existing issuances, we continue to hold a str
Slide 43: Canada: Communication Services
Regional Overview: Canada Communication Services For personal use only State of play p y › Core transactional revenue continues to grow steadily › Gaining traction in Financials with two new clients finalising contracts and good organic growth within existing accounts › Strong quality and SLA manage
Slide 44: Canada: Plan Managers
Regional Overview: Canada Plan Managers For personal use only State of play p y › Continue to win large ESPP mandates › Business continues to do well post disposal of Stock Options business › Extremely scaleable driven by robust ESPP technology › Client satisfaction remains at all time high Challeng
Slide 45: Canada: Corporate Proxy
Regional Overview: Canada Corporate Proxy For personal use only State of play p y › Lack of M&A activity impacting on Proxy business › Average dollar value of deals has declined due to competition › Still winning our market share in a soft market Challenges & opportunities › Competitive landscape re
Slide 46: Question Time
Investor & Analyst y Briefing g For personal use only Question Time W Wayne N li Newling Head of Computershare Canada 22 March 2012
Slide 47: Business Overview: United States of America
Investor & Analyst y Briefing g For personal use only Business Overview: United States of America St Steven R thbl Rothbloom Head of Computershare USA 22 March 2012
Slide 48: United States: Investor Services
Regional Overview: United States of America Investor Services For personal use only State of play p y › Client satisfaction strong, with highest scores to date for relationship management, operations and business-wide overall across multiple surveys › Client retention strong, with over 150 contracts
Slide 49: Corporate Proxy Solicitation & Fund Services
Regional Overview: United States of America Corporate Proxy Solicitation & Fund Services (CFS) For personal use only State of play p y › Q2 FY12 saw a reduction in M&A activity which reflects the August S&P downgrade and European economic issues; however, Georgeson won several significant transactio
Slide 50: United States: Plan Managers
Regional Overview: United States of America Plan Managers For personal use only State of play p y › Strong client loyalty and retention, with no competitive losses › Focused on supporting clients with regulatory compliance › Driving revenue via additional sales to existing clients clients, including
Slide 51: United States: Communication Services
Regional Overview: United States of America Communication Services For personal use only State of play p y › Significant business opportunities with CPU’s core business such as the Shareowner Services integration, and the non-core businesses (e.g. bankruptcy, class actions, and SLS) as well as comme
Slide 52: Bankruptcy and Class Action Administration (KCC)
Regional Overview: United States of America Bankruptcy and Class Action Administration (KCC) For personal use only State of play › 31% overallll market k t share h in i bankruptcy b k t administration d i i t ti in i CY2011 (1st (1 t in i market) k t) › 33% of “mega” market share in bankruptcy admin
Slide 53: Mortgage Servicing (SLS)
Regional Overview: United States of America Mortgage Servicing (SLS) For personal use only State of p play y ((since Dec 1,, 2011)) › Servicing portfolio Unpaid Principal Balance (UPB) has increased over 30% in the first three months, largely due to winning two new sub-servicing clients › Achieved s
Slide 54: Question Time
Investor & Analyst y Briefing g For personal use only Question Time St Steven R thbl Rothbloom Head of Computershare USA 22 March 2012
Slide 55: Business Overview: Continental Europe
Investor & Analyst y Briefing g For personal use only Business Overview: Continental Europe St ff Steffen H f th Herfurth Head of Computershare Continental Europe 22 March 2012
Slide 56: Our current footprint
Regional Overview: Continental Europe Our current footprint For personal use only 55. Investor & Analyst Briefing - Computershare Limited.
Slide 57: Investor Services - Russia
Regional Overview: Continental Europe Investor Services – Russia For personal use only State of play › Business units performed in accordance with expectations › Two registrars owned by CPU in Russia cumulatively have the largest market share › Successful growth of the client base › Integration of p
Slide 58: Investor Services - Denmark
Regional Overview: Continental Europe Investor Services – Denmark For personal use only State of play p y › Core registration and AGM business has underperformed due to fewer market transactions and increasing bankruptcies among major bank clients in 2011 › High client satisfaction among registry cl
Slide 59: Plan Managers - Denmark
Regional Overview: Continental Europe Plan Managers – Denmark For personal use only State of play p y › Market leader for LTIP schemes (options, warrants, phantoms etc.) › Successful implementation of first large client in Ireland › Migrating g a g clients from o legacy ga y system y (SPM1) ( ) to o
Slide 60: Investor Services - Sweden
Regional Overview: Continental Europe Investor Services – Sweden For personal use only State of play p y › Successfully retained our role as one of the market leaders of AGM services › Strong competition by local CSD (Euroclear Sweden) who provides various issuer services including meeting services
Slide 61: Investor Services - Germany
Regional Overview: Continental Europe Investor Services – Germany For personal use only State of play p y › For Issuer services the German market is still dominated by banks › CPU well positioned as registrar of choice for SME market › CPUU Registry g y won o first DAX mandate a da in 20110 › Market
Slide 62: Communication Services - Germany
Regional Overview: Continental Europe Communication Services – Germany For personal use only State of play p y › Printing market declining (Offset more than Digital) > Margins declining but starting to rationalise › Cost per unit increasing (fixed structures) > Positive trend to outsourcing (slow) ›
Slide 63: VEM - Germany
Regional Overview: Continental Europe VEM – Germany For personal use only State of play p y › Uncertain outlook for German and EU-Zone economy, long-term interest rates at record low, large caps with good performance at beginning of the year › European debt crisis still alienates market participants
Slide 64: Servizio Titoli (ST) - Italy
Regional Overview: Continental Europe Servizio Titoli (ST) – Italy For personal use only State of play p y › All-in-all ST is positively reacting to negative impact of Italian economy/finance: growth of business linked to blue chips extraordinary events is balancing revenue pressure by competitors a
Slide 65: Corporate Proxy - Southern Europe
Regional Overview: Continental Europe Corporate Proxy – Southern Europe For personal use only State of play p y › Strong half year for Intelligence products (i.e. Shareholder ID). Clients recognise superior quality and are ready to pay us a premium › Increasing client base in Italy and Spain › Banki
Slide 66: Question Time
Investor & Analyst y Briefing g For personal use only Question Time St ff Steffen H f th Herfurth Head of Computershare Continental Europe 22 March 2012
Slide 67: Business Overview: UK, Channel Islands, Ireland & Africa
Investor & Analyst y Briefing g For personal use only Business Overview: United Kingdom, Channel Islands, Ireland & Africa (UCIA) Naz Sarkar Head of UCIA 22 March 2012
Slide 68: UCIA: Registry UK
Regional Overview: UCIA Registry UK For personal use only State of play p y › No. 1 again in Capital Analytics Survey 2011/12 – 4 years in a row! › High client retention rates as major clients renew contracts › In a thin market we continue to win largest share of new IPOs › Maintaining very strong m
Slide 69: UCIA: Ireland
Regional Overview: UCIA Ireland For personal use only State of play p y › Market share remains high and solid › Now administering over 240 ETF funds – up from 200 last year › Government o proposals p opo a thata would ou d have a impacted pa d Irish Share a Plansa later a reversed d Challenges & opp
Slide 70: UCIA: Business Services
Regional Overview: UCIA Business Services For personal use only State of play p y › Low interest rate environment and growing private rental market driving continued growth in DPS deposit pool › Structured Products business line has slowed due to challenging market conditions › Gilts (UK Government
Slide 71: UCIA: Computershare Voucher Services
Regional Overview: UCIA Computershare Voucher Services (CVS) For personal use only State of play p y › Government has reiterated support for childcare vouchers › CVS continues to be the market leader but operating in a highly competitive market › Childcare Voucher Providers Association is building u
Slide 72: UCIA: Communication Services
Regional Overview: UCIA Communication Services For personal use only State of play p y › New MD with 15 yrs experience within UK’s largest communications businesses › Focus remains on delivering high quality reliable services to internal business units and developing stand alone commercial opportuni
Slide 73: UCIA: South Africa
Regional Overview: UCIA South Africa For personal use only State of play p y › M&A activity remains below historical norms but some signs of recovery › Maintaining market share through strong relationships › Focus remains on quality and effective cost management in the context of overall market wide
Slide 74: Georgeson - Corporate Proxy Solicitation
Regional Overview: UCIA Georgeson – Corporate Proxy Solicitation For personal use only State of play p y › Shareholder Activism is materially up and expected to increase as we enter the shareholder meeting season › Dutch market continues to perform well with increased number of clients and longer te
Slide 75: UCIA: Channel Islands
Regional Overview: UCIA Channel Islands For personal use only State of play p y › Offshore business continues to perform strongly with some recent major wins including Evraz, Randgold, Rolls-Royce and Rio Tinto › Successful cross selling g activityy between business units › High volume of re-domicil
Slide 76: UCIA: Plan Managers
Regional Overview: UCIA Plan Managers For personal use only State of play p y › Business is strong and stable with a number of cross-sell and new client wins › Dealing and FX revenues continue to be strong › Increased size of business has led to lower marginal costs of servicing clients › 80% of the
Slide 77: Question Time
Investor & Analyst y Briefing g For personal use only Question Time N Sarkar Naz S k Head of UCIA 22 March 2012
Slide 78: Close
Investor & Analyst l Briefing i fi For personal use only Computershare Limited Close 22 March 2012