Computershare Limited · ASX:CPU
Computershare — Macquarie Australia Investor Conference May 2016
16 slides from Computershare's conference presentation, May 5, 2016
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: 5 May 2016 To: Australian
Slide 2: Macquarie Australia Investor Conference
COMPUTERSHARE LIMITED For personal use only MACQUARIE AUSTRALIA INVESTOR CONFERENCE Mark Davis Chief Financial Officer May 2016
Slide 3: Today's agenda
Today’s agenda › Company overview For personal use only › 1H16 results at a glance › FY16 guidance › Margin income › Recent developments - UKAR appointment highlights - US mortgage servicing strategy - Blockchain › Capital management › Computershare core principles 2
Slide 4: Company overview
Company overview A leading global provider of administration services in our selected markets For personal use only Who we are › Global market leader in transfer agency and share registration, employee equity plan administration, proxy solicitation and stakeholder communications › Also specialise in
Slide 5: 1H16 Computershare - at a glance
1H16 Computershare - at a glance Management revenue Management EBITDA For personal use only 9% 7% 15% 16% ANZ 10% ANZ By geography 7% Asia Asia UCIA UCIA $938.7m CEU $242.3m CEU 18% 24% USA USA 48% Canada Canada 43% 3% 0% Register Register Maintenance Maintenance 9% 2% 5% & Corporate Actions 7% By b
Slide 6: FY16 guidance
FY16 guidance For personal use only › In February 2016 we said that we expected the Group’s Management EPS would be around 7.5% lower than FY15 and that we were seeing some softening in the operating environment › We now have greater clarity on FY16 and reiterate our guidance that Management EPS is
Slide 7: Margin income and client balances
Margin income and client balances Yield pressure continues but balances remain steady For personal use only 18 16 16.7 Effective hedging natural 8% 15.1 15.2 15.0 14 ($1.2bn) 14.4 14.0 Pre-hedged exposure 13.6 Effective hedging derivative 12 / fixed rate 29% 120.0 ($4.3bn) 10 USD billion 104.9 105.8
Slide 8: Client balances yield comparison
Client balances Assuming current Yield comparison balances remain steady and CPU is able to achieve an increase of 3.0% 100bps in yield in For personal use only future periods, an additional $150m of EBITDA per annum 2.5% would be earned 2.0% 1.5% 1.0% 0.5% 0.0% Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 De
Slide 9: UKAR appointment highlights
UKAR appointment highlights Financially attractive appointment that enhances strategic positioning For personal use only 1 Contract – appointed by UK Government agency (UKAR) under a long term contract of 7 years to exclusively service a £30bn portfolio of mortgages. A separate £11bn portfolio that
Slide 10: US mortgage servicing strategy
US mortgage servicing strategy Our objective is to build a capital light servicing business able to support all parts of the mortgage cycle For personal use only We are investing in building We do not nor do we intend to our fulfillment capabilities. originate loans however Originate Fulfill This ca
Slide 11: US mortgage servicing strategy: addressing strategic challenges
US mortgage servicing strategy Addressing our strategic challenges For personal use only Why we need to Strategic challenge Impact of CMC address 1. We need to acquire MSR in › Drive scale › Co-issue program provides volume at the best possible › Manage run-off steady flow and avoids bulk price › En
Slide 12: US mortgage services: surplus capital once optimal size obtained
US mortgage services Surplus capital once optimal size obtained For personal use only We’re expecting to deploy additional capital in the coming years. Upon reaching optimal scale, our after-tax cash flows will be able to replace our run-off AND deliver strong excess free cash flow FOR ILLUSTRATION
Slide 13: Blockchain
For personal use only Blockchain If blockchain technology is widely adopted across our markets Computershare is well positioned for market evolution and will endure Our global presence and deep market knowledge makes us an attractive partner for blockchain solution providers. Connecting a registry p
Slide 14: Capital management
For personal use only Capital management We have announced a clear policy whereby we intend to maintain our gearing level such that net debt / EBITDA is between 1.75x – 2.25x (excluding the non-recourse SLS advance facility debt), with temporary flexibility to go above this range to take advantage o
Slide 15: Computershare core principles
Computershare core principles For personal use only We are creating a Executing multi year simpler, more strategies to drive transparent and growth, address disciplined challenges and improve Computershare with productivity greater disclosure Continuing to focus on building and protecting scale in c
Slide 16: Important notice
Important notice Forward-looking statements › This announcement may include 'forward-looking statements'. Such statements can generally be For personal use only identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objecti
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