Slide 1: Financial Results for the Full Year Ended 30 June 2010
For personal use only COMPUTERSHARE LIMITED (ASX:CPU) FINANCIAL RESULTS FOR THE FULL YEAR ENDED 30 JUNE 2010 11 August 2010 NOTE: All figures (including comparatives) are presented in US Dollars (unless otherwise stated). Copies of the FY10 Results Presentation are available for download at: www.com
Slide 2: An excellent result despite challenging conditions
MARKET ANNOUNCEMENT An excellent result despite challenging conditions Melbourne, 11 August 2010 – Computershare Limited (ASX:CPU) today reported Management Adjusted For personal use only Earnings per Share of 57.80 cents for the twelve months ended 30 June 2010, an increase of 10.9% over the prior
Slide 3: Reconciliation – Statutory Results to Management Adjusted Results
MARKET ANNOUNCEMENT Reconciliation – Statutory Results to Management Adjusted Results For personal use only FY10 USD 000’s Net profit after tax as per Statutory Results 294,757 Management Adjustments (after tax) Restructuring provisions no longer required (net) (153) Intangible assets amortisation 2
Slide 4: Market announcement: outlook commentary
MARKET ANNOUNCEMENT “Looking to the future, it is not clear when transactional activity will return to more typical levels. Revenue lines that we expect to be particularly affected during FY11 include corporate actions, mutual fund proxy solicitation, For personal use only bankruptcy administration
Slide 5: Regional results commentary
MARKET ANNOUNCEMENT Heightened focus on controllable costs also assisted the significant improvement in the Indian business. The employee plan business in China continued to grow appreciably whilst Japan was flat, although both are immaterial For personal use only from a Group wide perspective. Euro
Slide 6: Debt refinancing and maturity profile
MARKET ANNOUNCEMENT During May 2010 the Company re-financed the $550.0 million bank debt facility that was to mature in October 2010. The new syndicated facility comprises a 3 year tranche of $300.0 million and a 4 year tranche of $300.0 For personal use only million with margins having increased ma
Slide 7: Management Adjustments
MARKET ANNOUNCEMENT Management Adjustments For personal use only The Company will continue to provide a summary of Post Tax Management Adjustments in an effort to assist Investors in understanding the comparative operating performance of the business. The adjustments for FY10 were as follows: • Rest
Slide 8: For further information
MARKET ANNOUNCEMENT For further information: For personal use only Mr Darren Murphy Head of Treasury and Investor Relations Tel: +61-3-9415 5102 Mobile: +61-418 392 687 ______________________________________________________________________________________________________________ Page 8 of 8 Full Yea
Slide 9: Full Year Results 2010 Presentation
For personal use only Computershare Limited Full Year Results 2010 Presentation Stuart Crosby Peter Barker 11 August 2010
Slide 10: Introduction, Financial Results, CEO's Report
For personal use only Introduction Financial CEO’s Report Results 2
Slide 11: Introduction
Introduction For personal use only Stuart Crosby President & Chief Executive Officer 3
Slide 12: Results Highlights
Results Highlights Introduction Management Adjusted Results For personal use only FY 2010 @ FY 2009 FY 2010 FY 2009 v FY 2009 exchange rates Management Earnings per share (post OEI) US 57.80 cents US 52.11 cents Up 11% US 55.74 cents Total Revenue $1,619.6 $1,511.6 Up 7% $1,552.5 Operating Expenses
Slide 13: Computershare Strengths
Computershare Strengths Introduction For personal use only › Strong balance sheet, low gearing and continued robust cash generation. › Diversification into counter and non cyclical businesses gives stability to revenue and profit base. › More than 70% of revenue recurring in nature. › Demonstrated a
Slide 14: Outlook
Outlook Introduction For personal use only › As anticipated, transactional revenues have been subdued and there is no clarity when more typical levels will return. Revenue lines affected include corporate actions, mutual fund proxy solicitation, bankruptcy administration and trading. › Net margin in
Slide 15: Introduction, Financial Results, CEO's Report
For personal use only Introduction Financial CEO’s Report Results 7
Slide 16: Financial
Financial Results For personal use only Peter Barker Chief Financial Officer 8
Slide 17: Drivers Behind FY 2010 Financial Performance
Drivers Behind FY 2010 Financial Performance Financial Results For personal use only › Strong delivery of recurring revenues across both the year and across business lines and geographies, good client retention (post GFC losses) and solid performance from non-equity market businesses (Corporate Trus
Slide 18: Group Financial Performance
Group Financial Performance Financial Results For personal use only % variance to FY10 FY09 FY 2009 Sales Revenue $1,599.6 $1,494.0 7% Interest & Other Income $20.0 $17.6 13% Total Revenue $1,619.6 $1,511.6 7% Operating Costs $1,111.3 $1,035.9 7% Share of Net (Profit)/Loss of Associates ($2.6) $0.2
Slide 19: Analysis of Management EPS
Analysis of Management EPS Financial Results For personal use only 11
Slide 20: FY 2010 Management NPAT Analysis
FY 2010 Management NPAT Analysis Financial Results For personal use only 12
Slide 21: Free Cash Flows
Free Cash Flows Financial Results For personal use only ** Notes 1. * US$ 49.7m includes acquisition of Land and Buildings in the UK (US$ 34.7m) 2. Conversion of Melbourne HQ from operating lease to finance lease not reflected here as not a cash outlay 13
Slide 22: Revenue & EBITDA Half Year Comparisons
Revenue & EBITDA Financial Half Year Comparisons Results For personal use only 14
Slide 23: Revenue Breakdown
Revenue Breakdown Financial Results For personal use only FY 2010 Revenue Stream FY 2010 1H 2010 2H 2010 FY 2009 1H 2009 2H 2009 variance to FY 2009 (%) Register Maintenance $641.8 $312.6 $329.2 $629.3 $335.0 $294.3 2% Corporate Actions $215.0 $116.9 $98.1 $273.5 $145.6 $127.9 (21%) Business Service
Slide 24: FY 2010 Regional Analysis & Revenue Breakdown
FY 2010 Regional Analysis & Revenue Financial Breakdown Results For personal use only Regional Reporting Previous Structure Current Structure North America USA Asia Pacific Canada Europe, Middle East & Africa Australia & NZ Asia Europe, Middle East & Africa Revenue Segments Previous Structure Curren
Slide 25: Margin Income Analysis
Margin Income Analysis Financial Results For personal use only Average Market Interest Rates UK 5.71% 5.19% 4.16% 0.82% 0.50% 0.50% US 4.85% 2.67% 1.53% 0.27% 0.25% 0.25% Canada 4.45% 3.51% 2.58% 0.64% 0.25% 0.29% Australia 6.52% 7.12% 6.23% 3.35% 3.24% 4.10% •Note: some balances attract no interest
Slide 26: FY 2010 Revenue & EBITDA Regional Analysis
FY 2010 Revenue & EBITDA Financial Regional Analysis Results For personal use only Total Revenue EBITDA breakdown breakdown 18
Slide 27: Operating Costs Half Year Comparisons
Operating Costs Financial Half Year Comparisons Results For personal use only 19
Slide 28: Technology Costs
Technology Costs Financial Continued Investment to Maintain Strategic Advantage Results For personal use only 20
Slide 29: Balance Sheet as at June 2010
Balance Sheet as at 30 June 2010 Financial Results For personal use only Jun-10 Jun-09 Variance Jun-10 to US#039;000 US#039;000 Jun-09 Current Assets $653,512 $537,014 22% Non Current Assets $2,036,943 $1,960,524 4% Total Assets $2,690,455 $2,497,538 8% Current Liabilities $497,347 $414,935 20% Non Curren
Slide 30: Key Financial Ratios
Key Financial Ratios Financial Results For personal use only EBITDA Interest Coverage Net Financial Indebtedness to EBITDA Jun-10 Jun-09 Variance Jun-10 to US$ M US$ M Jun-09 Interest Bearing Liabilities $994.0 $974.3 2% less Cash ($278.7) ($180.4) 54% Net Debt $715.4 $793.9 (10%) Management EBITDA
Slide 31: Debt Facility Maturity Profile
Debt Facility Maturity Profile Financial Results For personal use only Debt Total Synidcated Private Placement Maturity Dates Drawn Debt Facilities Debt Facility Facility FY11 Mar-11 50.0 50.0 50.0 FY12 Mar-12 123.0 123.0 123.0 FY13 May-13 265.9 300.0 300.0 FY14 May-14 105.0 300.0 300.0 FY15 Mar-15
Slide 32: Capital Expenditure vs. Depreciation
Capital Expenditure vs. Depreciation Financial Results For personal use only * Notes * US$ 29.8M conversion of Australian HQ building from operating lease to finance lease 24
Slide 33: Working Capital Management
Working Capital Management Financial Results For personal use only 25
Slide 34: Return On Invested Capital Vs. WACC and Return on Equity
Return On Invested Capital Vs. WACC and Financial Return on Equity Results For personal use only 26
Slide 35: Equity Management – Final Dividend
Equity Management – Final Dividend Financial of 14 cents (AU) Results For personal use only EPS - Basic US 53.05 cents EPS - Management US 57.80 cents Interim Dividend AU 14 cents (50% franked) Final Dividend AU 14 cents (60% franked) Current yield* 2.4% * Based on 12 month dividend and share price
Slide 36: Financial Summary – Final Remarks on FY10
Financial Summary – Final Remarks on FY10 Financial Results For personal use only › Another record management EPS. › Diverse portfolio of revenues, disciplined expense, cost and capital expenditure management have driven solid margins and excellent free cash flow. › Maintained strong and conservativ
Slide 37: Market Overview, CEO's Report, Results
For personal use only Market Financial CEO’s Report Overview Results 29
Slide 38: CEO Presentation
CEO Presentation CEO‟s Report For personal use only Stuart Crosby President & Chief Executive Officer 30
Slide 39: Group Strategy and Priorities
Group Strategy and Priorities CEO‟s Report For personal use only Our group strategy remains as it has been: › Continue to drive operations quality and efficiency through measurement, benchmarking and technology. › Improve our front office skills to protect and drive revenue. › Continue to seek acqui
Slide 40: Delivery Against Strategy
Delivery Against Strategy CEO‟s Report For personal use only Delivering on the first two limbs of the strategy (cost and revenue) has been a key priority: › Operational productivity and quality continues to improve across the globe. › Revenue initiatives offset to some extent revenue losses from cli
Slide 41: Priority - Lifting our Market Position
Priority - Lifting our Market Position CEO‟s Report For personal use only › We continue to enhance the quality of our operational and client directed processes, and during the year we rolled out platforms to make it easier for intermediaries (especially brokers and custodians) to deal with us. › We
Slide 42: Priority - Market Structure Projects
Priority - Market Structure Projects CEO‟s Report For personal use only › We continue to work on a range of market structure projects around the world, for example the SEC‟s concept release on the US Proxy System and the ECB‟s Target 2 Securities project. Similar exercises are underway in China, Rus
Slide 43: USA Update
USA Update CEO‟s Report For personal use only › Excellent service levels and quality across all businesses. › Winning new clients – eg, Frontier (spin from Verizon). › Significantly reduced volumes of project-driven work at Funds Services and KCC (Resourcing reduced in parallel, but profits still hi
Slide 44: Canada Update
Canada Update CEO‟s Report For personal use only › The corporate trust business won the State of Israel‟s global bond record keeping and paying agent work (being delivered in the US and UK as well as Canada), otherwise a slow market. › Corporate actions are very slow, impacting both investor service
Slide 45: EMEA Update
EMEA Update CEO‟s Report For personal use only › Migration and integration of the former HBOS Employee Equity Solutions business underway with a strong team assembled from around the world. › Voucher Services system migration complete. › New Russian management team working to integrate NRC and Nikoi
Slide 46: Asia Update
Asia Update CEO‟s Report For personal use only › HK IPO – have good pipeline but retail demand off the boil – Agricultural Bank only generated 100K applications (vs ICBC with 960K). › Major Chinese banks recapitalising – two complete, three to go. › China plans and proxy business continues to grow p
Slide 47: Australia & New Zealand Update
Australia & New Zealand Update CEO‟s Report For personal use only › Corporate action levels down significantly. › Winning a good share of what work there is – followed up Myer IPO role with Dulux and QR National IPO appointments. › Communication Services business winning new work, and final rational
Slide 48: Full Year Results 2010 Presentation
For personal use only Computershare Limited Full Year Results 2010 Presentation Stuart Crosby Peter Barker 11 August 2010
Slide 49: Appendix: Full Year Results 2010 Presentation
For personal use only Appendix: Full Year Results 2010 Presentation 11 August 2010 41
Slide 50: Appendix 1: Group Comparisons
Appendix 1: Group Comparisons For personal use only Group Comparisons 42
Slide 51: CPU Revenues
CPU Revenues Financial Results For personal use only 43
Slide 52: FY 2010 Revenue Regional Analysis
FY 2010 Revenue Financial Regional Analysis Results For personal use only 44
Slide 53: Revenue Half Year Comparisons
Revenue Financial Half Year Comparisons Results For personal use only 45
Slide 54: Operating Costs Half Year Comparisons
Operating Costs Financial Half Year Comparisons Results For personal use only 46
Slide 55: Underlying Effective Tax Rate
Underlying Effective Tax Rate Financial Results For personal use only 47
Slide 56: Hedge Lifecycles
Hedge Lifecycles Financial Results For personal use only Hedging of Long Term Sustainable Balances 100% 80% 60% 40% 20% 0% Jul-10 Jul-11 Jul-12 Jul-13 Total Hedging (derivatives, term deposits and floating rate debt) 48
Slide 57: Impact of Interest Rates on Profit Before Tax
Impact Impact of Interest Rates on Profit Before Tax Financial Results For personal use only US$m PBT This point is the estimated contribution Impact (+$34m) that derivatives and fixed deposits 90 will make to PBT over the next twelve months assuming cash rates remain at current levels 70 1% up cont
Slide 58: Interest Rate Hedging
Interest Rate Hedging Financial Risk Management Results For personal use only Interest Rate Hedging Current Strategy:- Continue to monitor medium term swap rates with the intention of accumulating cover should rates rise Policy: - Minimum hedge of 25% / Maximum hedge of 100% - Minimum term 1 year /
Slide 59: Appendix 2: Country Summaries
Appendix 2: Country Summaries Financial Results For personal use only Country Summaries 51
Slide 60: Australia Half Year Comparison
Australia Financial Half Year Comparison Results For personal use only 52
Slide 61: New Zealand Half Year Comparison
New Zealand Financial Half Year Comparison Results For personal use only 53
Slide 62: Hong Kong Half Year Comparison
Hong Kong Financial Half Year Comparison Results For personal use only 54
Slide 63: India Half Year Comparison
India Financial Half Year Comparison Results For personal use only 55
Slide 64: United States Half Year Comparison
United States Financial Half Year Comparison Results For personal use only 56
Slide 65: Canada Half Year Comparison
Canada Financial Half Year Comparison Results For personal use only 57
Slide 66: United Kingdom Half Year Comparison
United Kingdom Financial Half Year Comparison Results For personal use only 58
Slide 67: Ireland Half Year Comparison
Ireland Financial Half Year Comparison Results For personal use only 59
Slide 68: Germany Half Year Comparison
Germany Financial Half Year Comparison Results For personal use only 60
Slide 69: South Africa Half Year Comparison
South Africa Financial Half Year Comparison Results For personal use only 61
Slide 70: Russia Half Year Comparison
Russia Financial Half Year Comparison Results For personal use only 62
Slide 71: Appendix 3: Assumptions
Appendix 3: Assumptions Financial Results For personal use only Assumptions 63
Slide 72: Assumptions: Exchange Rates
Assumptions: Exchange Rates Financial Results For personal use only Average exchange rates used to translate FY10 profit & loss to USD USD 1.00000 AUD 1.13825 HKD 7.75900 NZD 1.43208 INR 46.73583 CAD 1.06571 GBP 0.63073 EUR 0.71745 ZAR 7.58359 RUB 30.21408 AED 3.67289 DKK 5.33968 SEK 7.25558 64