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 MARKET ANNOUNCEMENT www.computershare.com Date: 9 November 2016 To: Australian Securities Excha
Slide 2: 2016 Annual General Meeting
2016 ANNUAL GENERAL MEETING An inflection point in earnings growth 9 November 2016
Slide 3: Chairman's address
2016 ANNUAL GENERAL MEETING Chairman’s address Simon Jones
Slide 4: Company overview
Company overview A leading global provider of administration services in our selected markets Who we are › Global market leader in transfer agency and share registration, employee equity plan administration, proxy solicitation and stakeholder communications › Also specialise in mortgage servicing, c
Slide 5: Leveraging our strengths to drive profitable growth, free cash flow and enhanced returns
Leveraging our strengths to drive profitable growth, free cash flow and enhanced returns Diverse and loyal Largest global share Strong market customer base with registrar and positions with high many of the world’s employee share plans barriers to entry. leading administrator, only Technology organi
Slide 6: FY16 global highlights
FY16 global highlights 5 All figures presented are as at 30 June 2016 and stated in US Dollars (USD) unless otherwise noted.
Slide 7: FY2016 results
FY2016 results Track record of consistent returns › Delivered EPS of 55.09 cents – in line with guidance › Total management revenue +5.0%, $2,075m* › Management EBITDA $557.1m*, +0.5%, excluding margin income +4.3% › Free cash flow $347.5m, ROE 26.9% › AUD 105.2m shares bought back at accretive pric
Slide 8: Risk management
Risk management Computershare has a well developed culture, processes and governance in place to manage risk. These are established and embedded across all parts of the organisation. › Primary responsibility at the individual and business level › Strong independent oversight by the Risk and Audit Co
Slide 9: Corporate responsibility
Corporate responsibility Community – Change A Life 8
Slide 10: CEO's address
2016 ANNUAL GENERAL MEETING CEO’s address Stuart Irving
Slide 11: Robust underlying business performance continues
Robust underlying business performance continues Management EBITDA, excluding both margin income and the impact of exchange rate movements, has grown 46.1% since FY13 400 35% 379.3 350 364.4 30% 327.2 300 25% 250 259.7 EBITDA Margin USD million 21.4% 20% 20.8% 200 19.6% 16.4% 15% 150 10% 100 50 5% 0
Slide 12: Management revenue
Management revenue Computershare operates across a range of complementary businesses with a broad international footprint By geography By product Technology & Canada ANZ Communication other Services 2% 9% 15% 9% Employee Share Plans Asia 11% 6% Register Maintenance Stakeholder 37% Relationship $2,07
Slide 13: Strategy: Growth, profitability and capital management
Strategy: Growth, profitability and capital management Focus on organic growth, operational excellence and capital discipline Growth drivers › Mortgage servicing › Plans Profit drivers › Registry › Group wide efficiency programs › Margin income leverage Capital management › Debt leverage › Focus on
Slide 14: Growth: Mortgage servicing
Growth: Mortgage servicing Building scale to enhance returns Strategy › Build sustainable servicing business with complementary skills and scope to leverage CPU’s operational and technology expertise › Deploy incremental capital to deliver enhanced returns Update › CMC acquisition performing well ›
Slide 15: Growth: Employee share plans
Growth: Employee share plans Reinvigorating plans offerings to increase leverage to structural growth in equity compensation Long term Strong Reinvigorated Diversifying structural competitive customer value sector growth drivers position proposition and concentrations intact technology Transaction f
Slide 16: US: organic growth and profitability
US: organic growth and profitability Three stage strategy to drive improved performance in US registry › Manage revenue - offset/minimise attrition through corporate actions, new markets and product innovation: spin offs (increases number of shareholders), IPO’s and new products › Enhance profitabil
Slide 17: Client balances: strong leverage to rising rates
Client balances Assuming an Strong leverage to rising rates increase of 100bps on our FY16 exposed 3.00% balances ($4.7bn) CPU would generate an additional $47m annualised 2.50% EBITDA 2.00% 1.50% 1.00% 0.50% 0.00% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 J
Slide 18: Structural cost review
Structural cost review Programs Total benefits, underway to Benefits to be including deliver delivered across Louisville, operational and FY17 – FY20 expected to be process $85 – 100m* efficiencies Total cost savings Expected benefit realisation (cumulative) Activity estimates $m FY17 FY18 FY19 FY20
Slide 19: FY17 outlook
FY17 outlook Guidance affirmed Q1 FY17 trading and guidance › Computershare’s trading performance for Q1FY17 is consistent with the pcp › Given current trading and the outlook for the remainder of the year, we affirm EPS guidance for FY17 › In constant currency, Computershare expects FY17 Management
Slide 20: Conclusion
Conclusion An inflection point in earnings growth FY17 EPS guidance Q1 FY17 trading FY16 results (slightly up in CC) consistent with resilient affirmed the pcp Clear growth Enhancing strategies – profitability execution on track › Group-wide cost review › CMC delivering Capital management expected t
Slide 21: Important notice
Important notice Forward-looking statements › This announcement may include 'forward-looking statements'. Such statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'outlook', 'guid