Slide 1: FY20 Half Year Results Presentation
FY20 HALF YEAR RESULTS PRESENTATION 12 February 2020 Stuart Irving, Chief Executive Officer and President Nick Oldfield, Chief Financial Officer 1
Slide 2: 1H20 Executive Summary
1H20 Executive Summary Resilient operating performance – EPS impacted by interest rates and tax FY19 guidance affirmed Revenue EBITDA EPS $1,141.7m 1.2% $338.7m 2.2% 29.12 cents 16.7% Computershare has delivered a resilient operating performance. However, 1H20 Management EPS impacted by reduced marg
Slide 3: FY20 unwrapped
FY20 unwrapped 2H factors support earnings guidance 1H Positives 1H Negatives - Increase in recurring revenues 78.3% of Group total, up from 76.1%, offsetting - Headline EBITDA Margin 29.7%, up 30bps. Adjusting for IFRS16 and the Karvy the declines in event-based revenues disposal, EBITDA margin 27.
Slide 4: FY20 Outlook
FY20 Outlook Management EPS guidance unchanged – down around 5% FY20 › As we said in November at the AGM, we continue to expect Management EPS for FY20 to be down around 5% in constant currency - Mortgage Services and Employee Share Plans expected to offset weak Corporate Actions, lower margin incom
Slide 5: FY20 key priorities – execution scorecard
FY20 key priorities – execution scorecard Delivering on strategic plans PROGRESS RESULT PROGRESS RESULT 4. CONTINUE TO 1. PROGRESS THE Delivered slight operating DELIVER MEASURABLE RESTRUCTURE OF OUR All asset migrations on track to revenue growth in US Register ORGANIC GROWTH IN UK MORTGAGE SERVICE
Slide 6: Laying the foundations for long term growth and returns
Laying the foundations for long term growth and returns Growth Profitability Capital Management › Management revenues $1,141.7m, +1.2%. › Management EBITDA $338.7m, +2.2%. EBITDA › Strong net operating cash flow, +41.7% with Excluding margin income ($117.1m v $125.2m) margin 29.7%, up 30bps. EBITDA
Slide 7: Management revenue by business stream
Management revenue by business stream Revenues up 1.2%, +4.6% adjusting for margin income and Karvy 1H20 @ CC 1H19 CC Variance 1H20 Issuer Services $430.5 $471.8 -8.8% $424.3 Mortgage Services & Property Rental Services $348.2 $302.4 +15.1% $343.9 Employee Share Plans & Voucher Services $151.5 $126.
Slide 8: Issuer Services
Issuer Services Resilient Register Maintenance with lower event-based revenues 1H20 @ CC 1H19 Actual CC Variance Register Maintenance $326.1 $334.3 -2.5% Corporate Actions $73.8 $88.6 -16.7% Stakeholder Relationship Management $18.3 $35.5 -48.5% Issuer Services - Other $12.2 $13.4 -9.0% Total Issuer
Slide 9: Employee Share Plans
Employee Share Plans Equatex continues to outperform 1H20 @ CC 1H19 Actual CC Variance Fee revenue $67.6 $57.2 +18.2% Transactional revenue $62.9 $45.8 +37.3% Margin income $6.5 $7.0 -7.1% Other revenue $7.1 $6.6 +7.6% Total Employee Share Plans revenue $144.1 $116.7 +23.5% Employee Share Plans EBIT
Slide 10: Mortgage Services
Mortgage Services Disciplined growth in the US, UK migration on track 1H20 @ CC 1H19 Actual CC Variance US Mortgage Services $227.3 $159.4 +42.6% UK Mortgage Services $105.4 $128.0 -17.7% Total Mortgage Services revenue $332.7 $287.4 +15.8% Total Mortgage Services EBITDA $75.5 $59.2 +27.5% EBITDA ma
Slide 11: 1H20 Management results summary
1H20 Management results summary Resilient operating performance with lower margin income and higher tax rate 1H20 @ CC 1H19 Actual CC Variance 1H20 Actual Total Revenue $1,141.7 $1,127.8 +1.2% $1,124.3 Margin income $117.1 $125.2 -6.5% $116.0 Operating Costs $803.1 $795.4 +1.0% $787.6 Share of net p
Slide 12: Management revenue bridge
Management revenue bridge Strong contributions from US Mortgage Services and Employee Share Plans with lower event-based and margin income revenues 1,180 1,160 15.0 25.5 0.9 1.9 8.1 1,140 1,141.7 17.4 USD million 1,127.8 39.3 1,120 1,124.3 24.9 1,100 1,080 1,060 FX 1H19 Mgt Margin Income 1H20 Mgt Pl
Slide 13: Margin Income
Margin Income Margin income decreased to $116.0m, -7.3% with $16.8bn average balances Impacted by timing of US rate cuts and balances 35.0 125.2 121.2 116.0 120.0 30.0 99.9 100.0 89.4 25.0 86.4 79.0 79.6 74.3 80.0 20.0 69.6 66.6 21.0 USD million USD billion 17.3 60.0 15.0 16.3 16.6 16.8 16.6 16.8 16
Slide 14: EBITDA and margins by business stream
EBITDA and margins by business stream EBITDA $338.7m, +2.2% includes IFRS16 benefit Operating Margin 1H20 @ CC 1H19 CC Variance 1H20 @ CC 1H19 Issuer Services $130.1 $161.0 -19.2% 30.2% 34.1% Mortgage Services & Property Rental Services $82.3 $66.8 +23.2% 23.6% 22.1% Employee Share Plans & Voucher S
Slide 15: EBITDA and margin income by business stream
EBITDA and margin income by business stream EBITDA ex margin income $221.6m 1H20 1H20 MI @ 1H20 1H19 1H19 MI @ 1H19 CC EBITDA @ CC EBITDA ex EBITDA @ CC EBITDA ex Variance CC MI @ CC CC MI @ CC Issuer Services $130.1 $44.7 $85.4 $161.0 $61.1 $99.9 -14.5% Mortgage Services & Property Rental $82.3 $32
Slide 16: Operating cost analysis
Operating cost analysis Opex up 1.0% including IFRS16, up 2.5% excluding IFRS16, acquisitions and disposals 1H20 @ CC 1H19 CC Variance 1H20 › Under IFRS16, $23.9m of Cost of Sales $174.5 $175.5 -0.6% $171.2 occupancy costs have been reclassified as depreciation ($20.7m) and interest ($3.6m) Personne
Slide 17: Structural cost out programs
Structural cost out programs Programs delivering benefits as anticipated Total cost Benefit realisation (cumulative) Activity savings estimates $m FY17A FY18A FY19A FY20E FY21E FY22E FY23E Stage 1 Total 25 - 30 7.8 14.0 21.8 27.6 28.0 28.0 28.0 Stage 2 Total 60 - 70 5.9 35.4 54.1 63.0 66.6 66.6 66.6
Slide 18: Cash flow summary at actual FX rates
Cash flow summary at actual FX rates Positive free cash flows, $206.6m, +68.5% 1H20 Actual 1H19 Actual Net operating receipts and payments $312.2 $268.1 Net interest and dividends ($33.3) ($35.1) › Excluding loan servicing Income taxes paid ($28.6) ($56.4) advances, operating cash Net operating cash
Slide 19: Balance Sheet
Balance Sheet Leverage ratio within target range 1.75x – 2.25x Dec-19 Jun-19 Variance Current Assets $1,468.4 $1,501.1 -2.2% › Net debt increased to $1,340.1m, up $98.7m following MSR investment Non Current Assets $3,448.7 $3,183.9 +8.3% ($139.3m), buy-backs (AU$32.9m) and final dividend (AU$124.9m)
Slide 20: Conclusions
Conclusions › 1H20 result, resilient operating performance with earnings impacted by margin income, increased tax rate and known UKAR delayed migration costs › High quality core industrial businesses performing to plan, optionality embedded across the group › Cost out programs remain on track › Dela
Slide 21: Appendices
APPENDICES Statutory results 1H20 Management NPAT analysis Revenue and EBITDA Margin IH20 Computershare at a glance Management EBITDA (ex MI) Management EPS – AUD equivalent Financial performance by half year at actual FX rates Revenue and EBITDA by business stream at actual FX rates Management EBIT
Slide 22: Statutory results
Statutory results 1H20 1H19 Vs 1H19 (pcp) Total Revenues $1,125.8m $1,242.1m -9.4% Total Expenses $940.3m $912.0m +3.1% Statutory Net Profit (post NCI) $124.7m $259.4m -51.9% Earnings per share (post NCI) 23.00 cents 47.77 cents -51.9% › Management results are used, along with other measures, to ass
Slide 23: Management adjustment items
Management adjustment items Appendix 4D note 2 Amortisation › Customer relationships and most of other intangible assets that are recognised on business combinations or major asset acquisitions are amortised over their useful life in the statutory results but excluded from management earnings. The a
Slide 24: 1H20 Management NPAT analysis
USD million 24 0 50 100 150 200 1H19 NPAT 250 Mgt EBITDA 189.9 15.4 (ex MI) Margin Income 8.1 Dep'n & Amort 31.4 Interest 3.8 1H20 Management NPAT analysis Tax 7.2 Non-controlling 3.1 interest 1H20 @ CC NPAT 157.8 FX 0.8 1H20 NPAT 157.0
Slide 25: Total Revenue and EBITDA margin
High quality core industrial drives consistent operating performance EBITDA margin 29.9% including IFRS16 - in line with 10 year 1H performance range; 24.1-31.5%* 1,800 35% 1,600 29.9% 30% 1,400 25% 1,200 1,128 1,128 1,124 986 1,003 EBITDA margin 977 Total Revenue 960 20% USD millions 1,000 939 270
Slide 26: IFRS16/AASB 16 - Leases
IFRS16/AASB 16 - Leases Management EBITDA impact reflected in Corporate & Technology business stream 1H20 @ CC 1FRS16 @ 1H20 1H19 Actual CC Variance 1H20 @ 1FRS16 @ 1H20 CC excluding Actual rates Actual rates excluding IFRS16 @ CC IFRS16 @ Actual rates Management EBITDA $338.7 $23.9 $314.8 $331.4 -5
Slide 27: 1H20 Computershare at a glance
1H20 Computershare at a glance Management revenue @ CC Management EBITDA @ CC Canada ANZ ANZ Canada 8% 10% Asia 5% Asia 14% By geography 6% 5% UCIA 13% CEU $1,141.7m UCIA $338.7m 2% 23% USA 51% CEU 3% USA 60% Communication Corporate & Technology Services & Corporate & Technology 0% 11% Utilities Com
Slide 28: Management EBITDA excluding margin income and FX movements
Management EBITDA excluding the impact of margin income and FX movements increased by 7.5% in 1H20 versus pcp 434.8 428.4 405.3 372.8 357.7 321.5 255.3 221.6 206.2 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H20 Note: Management EBITDA translated at FY19 average rates and excludes margin income. 1H20 result
Slide 29: Management EPS – AUD Equivalent
Management EPS – AUD Equivalent 140 1 0.9139 0.9 0.8389 120 0.7758 0.7521 0.8 0.7273 0.7177 100 0.6838 0.7 97.87 Cents per share 0.6 80 81.69 75.74 0.5 71.31 72.35 60 65.92 0.4 48.03 0.3 40 42.35 0.2 20 0.1 0 0 FY14 FY15 FY16 FY17 FY18 FY19 1H20 AUD/USD average exchange rate 29
Slide 30: Financial performance by half year at actual FX rates
Financial performance by half year at actual FX rates 1H20 2H19 1H19 2H18 1H18 2H17 1H17 2H16 1H16 2H15 1H15 2H14 1H14 Total Management Revenue $1,124.3 $1,228.7 $1,127.8 $1,173.1 $1,127.8 $1,110.8 $1,003.2 $1,035.5 $938.7 $1,016.5 $959.5 $1,045.7 $976.9 Operating Costs $787.8 $885.2 $795.4 $843.4 $
Slide 31: Revenue and EBITDA by business stream at actual FX rates
Revenue and EBITDA by business stream at actual FX rates 1H20 1H20 1H20 1H19 1H19 1H19 REVENUE EBITDA EBITDA REVENUE EBITDA EBITDA MARGIN % MARGIN % Issuer Services $424.3 $129.0 30.4% $471.8 $161.0 34.1% Mortgage Services & Property Rental Services $343.9 $82.1 23.9% $302.4 $66.8 22.1% Employee Sha
Slide 32: Management EBITDA ex Margin Income by business stream
Management EBITDA ex Margin Income by business stream FY19 and FY18 at actual FX rates FY19 FY19 MI FY19 1H19 1H19 MI 1H19 2H19 2H19 MI 2H19 EBITDA EBITDA ex EBITDA EBITDA ex EBITDA EBITDA MI MI ex MI Issuer Services $313.6 $112.4 $201.2 $161.0 $61.1 $99.9 $152.6 $51.3 $101.3 Mortgage Services & Pro
Slide 33: Global Register Maintenance and Employee Share Plans revenue
Global Register Maintenance and Employee Share Plans revenue Registry Maintenance @ CC Employee Share Plans @ CC Margin Oth Rev Holder/Broker Income 5% paid 4% 30% Issuer paid 1H20 @ CC 64% $326.1m $144.1m Fee 47% Transaction Margin 44% income 6% Oth Rev Holder/Broker Margin 6% paid Income 29% 6% Is
Slide 34: Business Services revenue
Business Services revenue 1H20 @ CC 1H19 India Funds Class $16.9 13% Class Corporate Actions Actions Trust $54.8 $58.1 $44.8 45% 43% 37% Corporate Trust $44.1 33% $121.4m $134.1m Bankruptcy Bankruptcy $21.8 $15.0 18% 11% 34
Slide 35: Management revenue and EBITDA at actual FX rates
Management revenue and EBITDA at actual FX rates Revenue by Region EBITDA by Region 1,400.0 400.0 1,228.7 343.4 350.0 331.4 336.6 1,200.0 1,127.8 94.3 1,124.3 38.2 100.9 92.1 47.6 47.4 300.0 1,000.0 250.0 USD millions USD millions 605.5 800.0 531.7 576.6 190.7 200.0 175.6 202.0 600.0 62.8 150.0 41.5
Slide 36: 1H20 Management revenue at actual FX rates
1H20 Management revenue at actual FX rates 300 250 232.3 227.3 200 USD millions 150 116.6 100 82.5 70.9 54.5 47.9 50 42.0 42.9 36.9 36.7 27.6 16.1 15.5 15.6 18.5 8.0 10.1 7.9 5.0 2.8 3.3 2.3 0.9 0.1 0.0 0.0 0 Issuer Services Mortgage Services & Employee Share Plans & Business Services Communication
Slide 37: Issuer Services breakdown
1H20 Management revenue at actual FX rates Issuer Services breakdown 300 250 200 175.1 USD millions 150 100 50 43.4 40.5 36.0 26.9 26.2 13.6 9.6 9.3 9.5 8.0 5.5 3.3 7.2 0.0 1.0 2.0 2.3 0.0 0.5 0.0 2.9 0.3 1.2 0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Service
Slide 38: Australia
Australia Management revenue: AUD million 1H19 2H19 1H20 162.7 131.8 150.2 90.0 80.2 80.0 72.3 70.0 66.1 65.6 62.8 60.0 56.6 50.0 40.0 30.0 20.0 11.1 11.7 9.0 10.0 5.3 3.4 0.6 0.0 Issuer Services Plans & Vouchers CCS & Utilities Corporate & Technology 1H19 2H19 1H20 38
Slide 39: Australia – Issuer Services
Australia – Issuer Services Management revenue: AUD million 1H19 2H19 1H20 80.2 56.6 72.3 70.0 59.9 60.0 57.4 50.0 46.4 40.0 30.0 18.7 20.0 12.8 9.7 10.0 1.4 1.6 0.5 0.7 0.0 0.0 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Services - Other 1H19 2H19 1H20 39
Slide 40: Hong Kong
Hong Kong Management revenue: HKD million 1H19 2H19 1H20 357.9 384.4 407.1 350.0 300.0 288.7 264.6 256.6 250.0 200.0 150.0 127.6 118.5 93.5 100.0 50.0 -0.1 0.3 -0.1 0.0 Issuer Services Plans & Vouchers Corporate & Technology -50.0 1H19 2H19 1H20 40
Slide 41: Hong Kong – Issuer Services
Hong Kong – Issuer Services Management revenue: HKD million 1H19 2H19 1H20 264.6 256.6 288.7 250.0 210.5 204.8 205.7 200.0 150.0 100.0 62.4 45.8 50.0 38.3 14.0 12.5 15.7 0.0 0.0 0.2 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Services - Other 1H19 2H19 1H20
Slide 42: India (including Issuer Services breakdown)
India (including Issuer Services breakdown) Management revenue: INR million 1H19 2H19 1H20 1,608.6 - - 1,400.0 400.0 365.8 1,170.9 350.0 1,200.0 300.0 1,000.0 250.0 800.0 200.0 600.0 150.0 437.7 400.0 100.0 72.0 200.0 50.0 0.0 0.0 Issuer Services Business Services Register Maintenance Corporate Acti
Slide 43: USA
USA Management revenue: USD million 1H19 2H19 1H20 531.7 605.5 576.6 300.0 268.7 262.6 250.0 232.3 227.3 201.3 200.0 159.4 150.0 100.0 83.3 70.9 60.4 50.0 28.9 31.4 27.6 19.4 20.7 18.5 0.9 0.1 0.0 0.0 Issuer Services Mortgage Services & Property Plans & Vouchers Business Services CCS & Utilities Cor
Slide 44: USA – Issuer Services
USA – Issuer Services Management revenue: USD million 1H19 2H19 1H20 262.6 268.7 232.3 250.0 198.7 200.0 175.2 175.1 150.0 100.0 52.3 50.0 41.2 40.5 28.1 21.0 9.5 7.0 7.8 7.2 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Services - Other 1H19 2H19 1H20 44
Slide 45: Canada
Canada Management revenue: CAD million 1H19 2H19 1H20 132.3 126.4 121.6 70.0 64.2 60.0 57.0 55.4 51.8 49.2 48.5 50.0 40.0 30.0 20.0 14.0 13.2 13.4 10.0 4.8 4.3 4.3 0.1 0.1 0.0 0.0 Issuer Services Plans & Vouchers Business Services CCS & Utilities Corporate & Technology 1H19 2H19 1H20 45
Slide 46: Canada – Issuer Services
Canada – Issuer Services Management revenue: CAD million 1H19 2H19 1H20 49.2 57.0 48.5 50.0 45.0 43.7 40.0 34.6 35.0 33.6 30.0 25.0 20.0 14.1 15.0 11.9 12.3 10.0 5.0 1.5 1.5 1.6 0.0 Register Maintenance Corporate Actions Issuer Services - Other 1H19 2H19 1H20 46
Slide 47: UK, Channel Islands & Equatex
UK, Channel Islands & Equatex Management revenue: GBP million 1H19 2H19 1H20 187.8 235.2 194.2 Mortgage Services 1H19: 98.7m 2H19: 98.2m Plans including 1H20: 81.2m Equatex 120.0 1H19: 32.9m 110.2 110.0 2H19: 74.7m 1H20: 58.9m 100.0 Vouchers 93.2 1H19: 7.6m 2H19: 6.8m 81.5 1H20: 5.7m 80.0 64.6 60.0
Slide 48: UK and Channel Islands – Issuer Services
UK and Channel Islands – Issuer Services Management revenue: GBP million 1H19 2H19 1H20 28.5 30.0 27.1 25.0 20.5 20.4 19.8 20.0 15.0 10.0 4.6 5.0 3.1 3.0 2.9 2.8 2.1 2.1 2.1 2.1 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Services - Other 1H19 2H19 1H20 48
Slide 49: South Africa
South Africa Management revenue: RAND million 1H19 2H19 1H20 137.9 144.1 124.1 160.0 140.0 136.7 130.2 121.1 120.0 100.0 80.0 60.0 40.0 20.0 7.4 7.1 2.6 0.2 0.3 0.4 0.0 Issuer Services Plans & Vouchers Corporate & Technology 1H19 2H19 1H20 49
Slide 50: South Africa – Issuer Services
South Africa – Issuer Services Management revenue: RAND million 1H19 2H19 1H20 130.2 136.7 121.1 140.0 118.5 119.1 120.0 104.1 100.0 80.0 60.0 40.0 20.0 15.7 15.4 9.6 0.3 0.2 0.0 1.8 1.8 1.6 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Management Issuer Services - Other 1H19 2
Slide 51: Germany
Germany Management revenue: EUR million 1H19 2H19 1H20 16.9 29.0 17.6 16.0 14.4 14.0 14.0 13.2 12.0 11.6 10.0 8.0 6.0 4.0 2.8 2.8 2.5 2.0 1.4 0.7 0.1 0.0 0.1 0.0 Issuer Services Plans & Vouchers CCS & Utilities Corporate & Technology 1H19 2H19 1H20 51
Slide 52: Germany – Issuer Services
Germany – Issuer Services Management revenue: EUR million 1H19 2H19 1H20 2.8 13.2 2.8 14.0 13.0 12.0 10.0 8.0 6.0 4.0 2.6 2.5 2.0 0.2 0.2 0.3 0.0 Register Maintenance Issuer Services - Other 1H19 2H19 1H20 52
Slide 53: Technology costs as a % of revenue
Technology costs at actual FX rates 200 14% 12.6% 180 11.3% 11.2% 12% 160 Technology costs as a % of revenue 142.2 137.7 10% 140 7.6 128.0 5.9 4.1 120 29.6 8% 44.9 USD millions 100 43.0 6% 80 57.3 60 50.3 45.1 4% 40 2% 47.7 20 35.7 36.6 0 0% 1H19 2H19 1H20 Development Infrastructure Maintenance Admi
Slide 54: Capital expenditure versus depreciation
Capital expenditure versus depreciation at actual FX rates 80 38.0 40 70 35 60 30 Depreciation USD millions 50 25 Capex USD millions 40 18.9 18.6 20 33.3 0.8 30 4.7 15 23.8 3.9 0.4 20 7.7 10 13.6 2.7 0.4 24.0 4.1 10 0.2 5 13.1 9.0 0 0 1H19 2H19 1H20 Information Technology Communication Services Faci
Slide 55: Breakdown of client balances
Breakdown of client balances USD 16.8bn Total balances USD 11.6bn USD 5.2bn Exposed balances Non-exposed balances USD 3.6bn USD 8.0bn Hedged balances Non-hedged balances USD 6.4bn USD 1.6bn USD 3.2bn USD 0.4bn Non-hedged Natural hedge Fixed Rate Deposits Fixed Rate Swaps balances floating rate debt
Slide 56: Exposed and non-exposed balances by business
Exposed and non-exposed balances by business Margin income Margin income Business Activity 1H FY20 Balances (USD billions) Business Activity 1H FY19 Balances (USD billions) (USD millions) (USD millions) Exposed Non-exposed Exposed Non-exposed Register Maintenance 2.3 0.7 20.0 Register Maintenance 2.
Slide 57: Breakdown of exposed balances by currency
Breakdown of exposed balances by currency USD exposed balances continues to be the largest component Average exposed balances hedged Average exposed balances prior to hedging CAD 17% Other AUD 5% 2% CAD USD 45% USD 3.6bn 15% (USD 11.6bn x 31%) GBP 38% USD 11.6bn (USD 16.8bn x 69%) USD 48% GBP Averag
Slide 58: Profile of our swap and fixed rate deposit book
Profile of our swap and fixed rate deposit book Additional hedging undertaken in 1H20 As at 31 December 2019 4,000 Fixed rate deposits Swaps 3,500 USD million 3,000 2,500 2,000 1,500 1,000 500 0 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 As at 30 June 2019 4,000 Fixed rate deposits Swaps 3,500 USD million 3
Slide 59: Profile of floating rate deposits
Profile of floating rate deposits As at 31 December 2019 5,000 4,000 USD million 3,000 2,000 1,000 0 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 As at 30 June 2019 5,000 4,000 USD million 3,000 2,000 1,000 0 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 59
Slide 60: Debt maturity profile – December 2019
Debt maturity profile – 31 December 2019 Maturity Dates Debt Committed Bank Private SLS USD million Drawn Debt Debt Placement Advance Facilities Facility Facility Facility 800 FY20 Feb-20 62.5 125.0 125.0 FY21 Dec-20 138.3 225.0 225.0 700 Apr-21 343.0 450.0 450.0 FY22 Jul-21 37.0 50.0 50.0 86.7 Feb-
Slide 61: Key financial ratios
Key financial ratios Dec 19 Jun 19 Variance USD m USD m Dec 19 to Jun 19 Interest Bearing Liabilities including SLS advance debt $2,097.6 $2,036.3 +3.0% Less Cash ($548.5) ($561.3) -2.3% Net Debt including non-recourse SLS advance debt $1,549.1 $1,475.0 +5.0% Net debt excluding non-recourse SLS adva
Slide 62: Effective tax rate
Effective tax rate Statutory and management (at actual FX rates) 35% 32.8% 31.6% 30% 26.5% 25.4% › The Group’s statutory effective tax rate has 25% increased from 20.2% in 1H19 to 32.8% in 1H20 20.2% 20.7% › The Group’s management effective tax rate Tax Rate % 20% has increased from 25.4% in 1H19 to
Slide 63: Dividend history and franking
Dividend history and franking 25.0 23 23 20.0 21 21 19 19 17 17 15.0 16 16 15 15 14 10.0 5.0 0.0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 Dividend (AU cents) Franking (%) 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 20% 20% 20% 25% 100% 20% 30% 0% 0% 100%
Slide 64: Mortgage Servicing
US and UK Mortgage Services – UPB and number of loans US Mortgage Services UPB up 9.6% ($111.6bn v $101.8bn) Performing Non-performing At 31 Dec 19 At 30 Jun 19 At 31 Dec 19 At 30 Jun 19 Fully-Owned $22.3bn $13.7bn $9.7bn $10.6bn MSRs 1 97K Loans 66K Loans 88K Loans 97K Loans Excess strip deals Exce
Slide 65: Mortgage Services Revenue and EBITDA at actual FX rates
Mortgage Services Revenue and EBITDA at actual FX rates 1H18 2H18 1H19 2H19 1H20 US Mortgage Services revenue $143.4 $162.7 $159.4 $201.3 $227.3 UK Mortgage Services revenue $122.1 $132.9 $128.0 $127.1 $101.6 Total Mortgage Services revenue $265.4 $295.6 $287.4 $328.4 $328.9 Total Mortgage Services
Slide 66: Financial snapshot – US Mortgage Services
Financial snapshot – US Mortgage Services 1H20 revenue composition Other Base service fees servicing 36% fees • Base servicing fees, $121.6m, +28.4% 54% • Servicing related fees $23.5m, +5.8% • Other services fees $82.1m, +93.3% $227.3m Servicing related fees 10% Dec-19 Jun-19 Annual Report referenc
Slide 67: Mortgage services key terms
Mortgage services key terms Performing servicing: Servicing of a mortgage which is less than 30 days delinquent. Typically loans that meet the criteria of the Government Sponsored Entities e.g. “Fannie Mae”, “Freddie Mac”. Non-performing servicing: Servicing of a mortgage that is over 30 days delinq
Slide 68: 1H20 Previous Business Stream Reporting
1H20 PREVIOUS BUSINESS STREAM REPORTING 68
Slide 69: Explaining the new business streams
Explaining the new business streams › Issuer Services Register Maintenance, Corporate Actions and Stakeholder Relationship Management now form Issuer Services. We have also added our Corporate Governance software products business that provides entity management and board portals solutions, this was
Slide 70: Management revenue by business stream
Management revenue by business stream Business stream 1H20 @ CC 1H19 Actual CC Variance 1H20 Actual Business Services $475.0 $443.9 +7.0% $469.6 Register Maintenance $330.8 $339.6 -2.6% $326.0 Corporate Actions $76.8 $91.7 -16.2% $75.9 Employee Share Plans $143.7 $116.6 +23.2% $141.2 Communication S
Slide 71: EBITDA and margins by business stream
EBITDA and margins by business stream 1H20 @ CC 1H19 Actual CC Variance 1H20 EBITDA 1H19 Actual Margin in CC EBITDA Business Stream % Margin % Business Services $126.9 $118.5 +7.1% 26.7% 26.7% Register Maintenance & Corporate Actions $139.9 $160.2 -12.7% 34.3% 37.1% Employee Share Plans $27.4 $22.1
Slide 72: EBITDA and margin income by business stream
EBITDA and margin income by business stream 1H20 1H20 1H20 1H19 1H19 1H19 CC EBITDA MI EBITDA EBITDA MI EBITDA Variance Business Stream @ CC @ CC ex MI @ ex MI CC Business Services $126.9 $63.9 $63.0 $118.5 $55.4 $63.1 -0.2% Register Maintenance & Corporate Actions $139.9 $46.8 $93.1 $160.2 $62.8 $9
Slide 73: Summary
Summary Previous Business Stream 1H20 1H20 1H20 1H20 New Business Stream Reporting 1H20 1H20 1H20 1H20 Reporting Revenue @ EBITDA @ Revenue EBITDA Revenue @ EBITDA Revenue EBITDA CC CC CC @ CC Register Maintenance 330.8 326.0 139.9 138.8 Corporate Actions 76.8 75.9 Stakeholder Relationship 18.3 -5.1
Slide 74: Issuer Services
Issuer Services 1H20 @ CC 1H20 @ CC 1H20 1H20 USD M Revenue EBITDA Revenue EBITDA Register Maintenance 330.8 326.0 139.9 138.8 Corporate Actions 76.8 75.9 Stakeholder Relationship Management 18.3 -5.1 18.1 -5.1 Total (per previous reporting) 429.0 134.8 425.2 133.7 Inclusions Add Governance Services
Slide 75: Business Services
Business Services 1H19 1H19 FY19 FY19 USD M Revenue EBITDA Revenue EBITDA Business Services (per previous reporting) 475.0 126.9 469.6 126.3 Inclusions Add Bonds/Successor Trustee and Escrow 5.3 3.0 5.2 3.0 Add Other 0.5 -0.2 0.5 -0.2 Removals Less Mortgage Services -332.4 -75.7 -328.7 -75.7 Less Pr
Slide 76: Employee Share Plans & Voucher Services
Employee Share Plans & Voucher Services 1H19 1H19 FY19 FY19 USD M Revenue EBITDA Revenue EBITDA Employee Share Plans (per previous reporting) 143.7 27.4 141.2 27.1 Inclusions Add Vouchers 7.4 5.0 7.2 4.8 Add Other 0.4 0.1 0.4 -0.0 Employee Share Plans & Voucher Services 151.5 32.5 148.8 31.9 76
Slide 77: Communication Services & Utilities
Communication Services & Utilities 1H19 1H19 FY19 FY19 USD M Revenue EBITDA Revenue EBITDA Communication Services (per previous reporting) 82.4 15.2 79.1 14.5 Inclusions Add Utilities 4.0 -0.6 3.7 -0.6 Add Other 0.3 -0.1 0.3 0.1 Communication Services & Utilities 86.7 14.5 83.1 14.0 77
Slide 78: Mortgage Services & Property Rental Services
Mortgage Services & Property Rental Services 1H19 1H19 FY19 FY19 USD M Revenue EBITDA Revenue EBITDA Mortgage Services (per previous reporting) 332.4 75.7 328.7 75.7 Inclusions Add Property Rental Services 15.5 7.9 15.0 7.5 Add Other 0.2 -1.3 0.3 -1.1 Mortgage Services & Property Rental Services 348
Slide 79: Corporate & Technology
Corporate & Technology 1H19 1H19 FY19 FY19 USD M Revenue EBITDA Revenue EBITDA Corporate & Technology (per previous reporting) 14.7 34.4 14.3 35.0 Removals Less Governance Services -8.1 0.9 -8.0 0.9 Less Other Issuer Services -1.8 0.8 -1.6 0.8 Less Other Business Services -0.5 0.2 -0.5 0.2 Less Othe
Slide 80: 1H20 Management revenue at actual FX rates
1H20 Management revenue at actual FX rates 450 400 350 293.4 300 250 179.3 USD millions 200 131.3 150 74.8 100 43.5 43.2 41.2 39.0 37.1 27.6 26.9 26.3 50 18.5 15.6 15.5 13.1 10.0 10.0 9.5 9.2 8.0 8.0 5.3 5.3 4.9 3.7 3.4 3.3 3.2 2.9 2.8 2.3 2.2 2.0 1.0 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0 Register Maintenan
Slide 81: Australia
Australia Management revenue: AUD million 1H19 2H19 1H20 162.7 131.8 150.2 61.0 60.1 59.5 57.6 57.0 46.4 18.0 12.8 11.7 11.1 9.0 8.9 6.0 6.1 5.5 5.8 4.2 0.7 0.6 1.4 1.2 Register Maintenance Corporate Business Stakeholder Relationship Employee Share Plans Communication Services Corporate & Technology
Slide 82: Hong Kong
Hong Kong Management revenue: HKD million 1H19 2H19 1H20 357.9 384.4 407.2 210.7 204.7 206.0 127.6 118.5 93.5 62.4 45.8 38.3 14.0 12.5 15.7 Register Maintenance Corporate Actions Stakeholder Relationship Mgt Employee Share Plans 1H19 2H19 1H20 82
Slide 83: India
India Management revenue: INR million 1H19 2H19 1H20 1,608.6 - - 1,137.7 401.1 69.8 Register Maintenance Corporate Actions Business Services 1H19 83
Slide 84: USA
USA Management revenue: USD million 1H19 2H19 1H20 Mortgage Services 531.7 426.7 576.6 1H19: 159.5m 2H19: 201.6m 1H20: 227.4m 293.4 279.6 215.3 203.4 178.8 179.3 55.1 44.4 43.5 28.1 28.9 31.4 27.6 21.0 19.4 20.7 18.5 9.5 6.1 5.0 4.9 Register Maintenance Corporate Business Stakeholder Relationship Em
Slide 85: Canada
Canada Management revenue: CAD million 1H19 2H19 1H20 132.3 126.4 121.6 63.6 54.4 50.9 44.2 34.1 34.7 14.0 13.9 13.1 13.2 11.7 12.1 4.7 4.2 4.3 2.0 2.3 2.9 Register Maintenance Corporate Business Employee Share Plans Communication Services Corporate & Technology Actions Services 1H19 2H19 1H20 85
Slide 86: UK, Channel Islands & Equatex
UK, Channel Islands & Equatex Management revenue: GBP million 1H19 2H19 1H20 Mortgage 187.8 232.8 194.2 Services 1H19: 97.7m 2H19: 98.0m 1H20: 81.0m 122.9 124.8 105.0 74.5 58.8 32.8 22.0 21.3 20.9 3.1 4.6 2.8 2.9 2.3 2.8 2.3 2.7 2.4 2.1 2.1 2.0 Register Maintenance Corporate Business Stakeholder Rel
Slide 87: South Africa
South Africa Management revenue: RAND million 1H19 2H19 1H20 137.9 144.1 124.1 120.5 121.2 101.0 15.7 15.4 9.6 7.4 7.1 5.1 0.3 2.6 0.2 0.0 Register Maintenance Corporate Actions Stakeholder Relationship Mgt Employee Share Plans Tech & Other Revenue 1H19 2H19 1H20 87
Slide 88: Germany
Germany Management revenue: EUR million 1H19 2H19 1H20 16.9 29.0 17.6 14.4 14.0 12.9 11.6 2.6 2.5 2.5 1.4 0.8 0.3 0.3 0.3 Register Maintenance Employee Share Plans Communication Services Corporate & Technology 1H19 2H19 1H20 88
Slide 89: Exchange rates
Exchange rates Currency 1H20 FY19 1H19 FY18 1H18 USD 1.0000 1.0000 1.0000 1.0000 1.0000 AUD 1.4623 1.3933 1.3734 1.2890 1.2863 HKD 7.8321 7.8405 7.8371 7.8219 7.8095 NZD 1.5504 1.4874 1.4893 1.3977 1.3969 INR 70.4405 70.4260 70.6855 64.9732 64.6323 CAD 1.3203 1.3252 1.3117 1.2716 1.2709 GBP 0.7993 0
Slide 90: Important notice
Important notice Summary information • This announcement contains summary information about Computershare and its activities current as at the date of this announcement. • This announcement is for information purposes only and is not a prospectus or product disclosure statement, financial product or