Slide 1: Financial Results for the Half Year Ended 31 December 2010
For personal use only COMPUTERSHARE LIMITED (ASX:CPU) FINANCIAL RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2010 9 February 2011 NOTE: All figures (including comparatives) are presented in US Dollars (unless otherwise stated). Copies of the 1H11 Results Presentation are available for download at: ww
Slide 2: Mixed business conditions negatively impact results
MARKET ANNOUNCEMENT Mixed business conditions negatively impact results Melbourne, 9 February 2011 – Computershare Limited (ASX:CPU) today reported Management Adjusted For personal use only Earnings per Share (EPS) of 26.96 cents for the six months ended 31 December 2010, a decrease of 14.1% over th
Slide 3: Management EPS performance and regional summary
MARKET ANNOUNCEMENT This half saw the Europe, Middle East and Africa (EMEA) region split into two segments. The new segments are United Kingdom, Channel Islands, Ireland & Africa (UCIA) and Continental Europe. The slowdown in corporate For personal use only actions saw the Australian and United King
Slide 4: United Kingdom, Channel Islands, Ireland & Africa (UCIA)
MARKET ANNOUNCEMENT United Kingdom, Channel Islands, Ireland & Africa (UCIA) For personal use only New segment reporting breaks out UCIA for the first time. The region grew 1H11 revenues by 2.3% over 1H10 to $135.1 million, underpinned by the HBOS EES acquisition (both in the UK and the Channel Isla
Slide 5: Debt maturity profile
MARKET ANNOUNCEMENT The debt maturity profile is outlined in the table below: For personal use only Maturity Dates Debt Drawn Committed Bank Private Debt Debt Placement Facilities Facility Facility FY11 Mar-11 50.0m 50.0m 50.0m FY12 Mar-12 123.0m 123.0m 123.0m FY13 May-13 297.8m 300.0m 300.0m FY14 M
Slide 6: Reconciliation – Statutory Results to Management Adjusted
MARKET ANNOUNCEMENT Reconciliation – Statutory Results to Management Adjusted Results For personal use only 1H11 USD 000’s Net profit after tax as per Statutory Results 116,874 Management Adjustments (after tax) Redundancy provisions 93 Intangible assets amortisation 14,461 Net loss on disposal of b
Slide 7: About Computershare Limited (CPU)
MARKET ANNOUNCEMENT About Computershare Limited (CPU) For personal use only Computershare (ASX:CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialise in corporate trust services, tax vouch
Slide 8: Half Year Results 2011 Presentation
For personal use only Computershare Limited Half Year Results 2011 Presentation Stuart Crosby Peter Barker 9 February 2011
Slide 9: Introduction, Financial, CEO's Report
For personal use only Introduction Financial CEO’s Report Results 2
Slide 10: Introduction
Introduction For personal use only S Stuart C Crosby b President & Chief Executive Officer 3
Slide 11: Results Highlights
Results Highlights Introduction Management Adjusted Results For personal use only 1H 2011 @ 1H 2010 1H 2011 v 2H 2010 v 1H 2010 exchange rates Management Earnings per share (post NCI) US 26.96 cents Up 2.0% Down 14.1% US 26.63 cents Total Revenue $781.0 Down 3.8% Down 3.3% $771.3 Operating Expenses
Slide 12: Computershare Strengths
Computershare Strengths Introduction For personal use only › Strong g balance sheet,, low gearing g g and long-term g robust cash ggeneration. › Diversification into counter and non cyclical businesses gives stability to revenue and profit base. › More than 70% of revenue recurring in nature. nature
Slide 13: Trading environment
Trading environment Introduction For personal use only › Transactional revenues continue to be subdued and we have limited visibilityy of when the cycle will turn. Revenue lines affected include corporate actions, mutual fund proxy solicitation, bankruptcy administration and trading. › We are seeing
Slide 14: Investment and guidance
Investment and guidance For personal use only › Despite p the revenue softness,, we plan p to maintain our investment in technology, operational capabilities and new product. We see this as vital to our capacity to execute on growth opportunities. › The range of acquisition opportunities that we are
Slide 15: Introduction, Financial, CEO's Report
For personal use only Introduction Financial CEO’s Report p Results 8
Slide 16: Financial
Financial Results For personal use only Peter Barker k Chief Financial Officer 9
Slide 17: Drivers Behind 1H 2011 Financial Performance
Drivers Behind 1H 2011 Financial Performance Financial Results For personal use only › Revenues down 3% when compared p against g a stellar 1H10. This reflects the importance and generally solid performance of our annuity equity market businesses, and the current low levels of corporate action activ
Slide 18: Group Financial Performance
Group Financial Performance Financial Results For personal use only % variance % variance 1H 2011 2H 2010 1H 2010 to 2H 2010 to 1H 2010 Sales Revenue $772.7 $801.3 (4%) $798.3 (3%) Interest & Other Income $8 3 $8.3 $10 8 $10.8 (22%) $9 2 $9.2 (9%) Total Revenue $781.0 $812.1 (4%) $807.5 (3%) Operati
Slide 19: Analysis of Management EPS
Analysis of Management EPS Financial Results For personal use only 12
Slide 20: 1H 2011 Management NPAT Analysis
1H 2011 Management NPAT Analysis Financial Results For personal use only 13
Slide 21: Free Cash Flows
Free Cash Flows Financial Results For personal use only ** * US 49.7m includes acquisition of Land and Buildings in the UK (US$ 34.7m) ** Lower 1H11 cash flow reflects movements in the balance sheet over the period 30‐Jun‐10 through 31‐Dec‐10 plus payment of variable compensation for the Y/E Jun‐10
Slide 22: Revenue & EBITDA
Revenue & EBITDA Financial Half Year Comparisons Results For personal use only 15
Slide 23: Revenue Breakdown
Revenue Breakdown Financial Results For personal use only % variance % variance Revenue Stream 1H 2011 2H 2010 1H 2010 to 2H 2010 to 1H 2010 Register Maintenance $ $325.8 $ $329.2 ( ) (1%) $ $312.6 4% Corporate Actions $99.1 $98.1 1% $116.9 (15%) Business Services $133.8 $123.1 9% $139.8 (4%) Stakeh
Slide 24: 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% 0.50% US 4 85% 4.85% 2 67% 2.67% 1 53% 1.53% 0 27% 0.27% 0 25% 0.25% 0 25% 0.25% 0 25% 0.25% Canada 4.45% 3.51% 2.58% 0.64% 0.25% 0.29% 0.88% Australia 6.52% 7.12% 6.23
Slide 25: 1H 2011 Revenue & EBITDA Regional Analysis
1H 2011 Revenue & EBITDA Financial Regional Analysis Results For personal use only Total Revenue breakdown EBITDA breakdown 12% 20% 17% 24% Australia & NZ Asia UCIA 13% 9% Continental Europe 33% USA 27% Canada 18% 23% 4% 1% Regional g Reporting p g Previous Structure Current Structure Australia & NZ
Slide 26: Operating Costs
Operating Costs Financial Half Year Comparisons Results For personal use only 19
Slide 27: Technology Costs
Technology Costs Financial Continued Investment to Maintain Strategic Advantage Results For personal use only * *The basis for calculating and classifying technology costs has been revised from 1 July 2011. Partly this reflects changes in reporting structures, where technologygy workers ppreviously
Slide 28: Balance Sheet as at December 2010
Balance Sheet as at 31 December 2010 Financial Results For personal use only Dec‐10 Jun‐10 Variance Dec‐10 to US#039;000 US#039;000 Jun‐10 Current Assets $644,200 $653,512 (1%) Non Current Assets $2,071,776 $2,036,943 2% Total Assets $2,715,976 $2,690,455 1% Current Liabilities $405,839 $ , $497,347 $ , (
Slide 29: Key Financial Ratios
Key Financial Ratios Financial Results For personal use only EBITDA Interest Coverage Net Financial Indebtedness to EBITDA Dec‐10 Dec 10 Jun‐10 Jun 10 Variance Dec‐10 to US$ Mn US$ Mn Jun‐10 Interest Bearing Liabilities $1,003.9 $994.0 1% Less Cash ($320.5) $ ($278.7) $ 15% Net Debt $683.4 $715.4 (4
Slide 30: Debt Facility Maturity Profile
Debt Facility Maturity Profile Financial Results For personal use only Debt Total Club Private Placement Maturity Dates Drawn Debt Facilities Debt Facility Facility FY11 Mar-11 50.0 50.0 50.0 FY12 Mar-12 123.0 123.0 123.0 FY13 May-13 297.8 300.0 300.0 FY14 May-14 85.0 300.0 300.0 FY15 Mar-15 124.5 1
Slide 31: Capital Expenditure vs. Depreciation
Capital Expenditure vs. Depreciation Financial Results For personal use only 24
Slide 32: Working Capital Management
Working Capital Management Financial Results For personal use only 25
Slide 33: Return On Invested Capital Vs. WACC and Return on Equity
Return On Invested Capital Vs. WACC and Financial Return on Equity Results For personal use only 26
Slide 34: Equity Management – Interim Dividend
Equity Management – Interim Dividend Financial of 14 cents (AU) Results For personal use only EPS ‐ Basic US 21.03 cents EPS ‐ Management US 26.96 cents Interim Dividend AU 14 cents (60% franked) Current yield* 2.8% * Based on 12 month dividend and share price of AU$ 10.16 (close 3 February 2011) 27
Slide 35: Financial Summary – Final Remarks
Financial Summary – Final Remarks Financial Results For personal use only › A solid p performance for the half,, with results reflecting g both the strength g of the underlying business and the current absence of Computershare’s traditional growth drivers › Diverse pportfolio of revenues,, ongoing g
Slide 36: Market Overview, Financial Results, CEO's Report
For personal use only Market Financial CEO’s CEO s Report Overview Results 29
Slide 37: CEO Presentation
CEO Presentation CEO’s Report For personal use only Stuart Crosby President & Chief Executive Officer 30
Slide 38: 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. revenue › Continue to se
Slide 39: 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: i it › Operational productivity and quality continues to improve across the globe, evidenced by continued leadership in independent client and sh
Slide 40: Priority - Lifting our Market Position
Priority - Lifting our Market Position CEO’s Report For personal use only › Third party shareholder and issuer satisfaction surveys surveys, as well as our own market research, continue to show that the market recognises the edge that our quality and product innovation give us. This becomes all the
Slide 41: 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 US SEC’s review of the proxy voting system in that country and a range of European initiatives, including but by no means limited to
Slide 42: USA Update
USA Update CEO’s Report For personal use only › Excellent service levels and q qualityy across all businesses. › Winning some clients – eg, GM IPO – but also lost a couple of others to bundled credit offerings and “balance of trade” pitches. › Volumes remain low on transactional work – corporate act
Slide 43: Canada Update
Canada Update CEO’s Report For personal use only › Loss of largest g TA client (Bell ( Canada)) to a revitalised competitor p (formerly ( y CIBC Mellon, now Canadian Stock Transfer) has galvanised the Canadian management team. › State of Israel’s Israel s global bond record keeping and paying agent
Slide 44: UCIA Update
UCIA Update CEO’s Report For personal use only › Won major j clients Aviva (from ( Equiniti) q ) and Sports p Direct (from ( Capita) p ) for both registry and plans – plans take-on puts additional pressure on the HBOS migration / integration. › Migration and integration of the former HBOS Employee E
Slide 45: Continental Europe Update
Continental Europe Update CEO’s Report For personal use only › German AGM business doingg well,, but the reduction in numbers of EGMs post p GFC makes revenues soft. › New consolidated Moscow office provides the platform for the new Russian management team to integrate NRC and Nikoil. Nikoil › VEM c
Slide 46: Asia Update
Asia Update CEO’s Report For personal use only › Hongg Kong g business as usual running g well,, and we are investing g alongside g HKEx in the HK dematerialisation project sponsored by the HK Government and regulator. › HK fund raising (primary and secondary) has been strong and is likely to contin
Slide 47: Australia & New Zealand Update
Australia & New Zealand Update CEO’s Report For personal use only › Market share and business as usual revenues in investor services holding g up p well. › Transaction levels remain down, affecting corporate actions and solicitation revenues. › Winning a good share of large IPO appointments. › Commu
Slide 48: Half Year Results 2011 Presentation
For personal use only Computershare Limited Half Year Results 2011 Presentation Stuart Crosby Peter Barker 9 February 2011
Slide 49: Appendix: Half Year Results 2011 Presentation
For personal use only Appendix: Half Year Results 2011 Presentation 9 February 2011 42
Slide 50: Appendix 1: Group Comparisons
Appendix 1: Group Comparisons For personal use only Group Comparisons 43
Slide 51: CPU Revenues
CPU Revenues Financial Results For personal use only 3% 11% Register Maintenance Corporate Actions 9% 42% Business Services 5% Stakeholder Relationship M'ment Employee Share Plans 17% Communication Services Tech & Other Revenue 13% 44
Slide 52: 1H 2011 Revenue Regional Analysis
1H 2011 Revenue Financial Regional Analysis Results For personal use only 45
Slide 53: Revenue Half Year Comparisons
Revenue Financial Half Year Comparisons Results For personal use only 46
Slide 54: Operating Costs Half Year Comparisons
Operating Costs Financial Half Year Comparisons Results For personal use only * Corporate operating costs will be allocated and reported under the five main cost categories – cost of sales, personnel, occupancy, other direct and technology from the next reporting period. period 47
Slide 55: Underlying Effective Tax Rate
Underlying Effective Tax Rate Financial Results For personal use only 48
Slide 56: Client Balances - Hedging of Sustainable Client Balances
Client Balances - Financial Hedging of Sustainable Client Balances Results For personal use only Sustainable Client Balance Hedges – snapshot as at 31-Dec-10 100% 80% 60% 40% 20% 0% Jan 11 Jan-11 Jan 12 Jan-12 Jan 13 Jan-13 Jan 14 Jan-14 Total Hedging (derivatives, term deposits and floating rate de
Slide 57: Impact of Interest Rates on Profit Before Tax
Impact of Interest Rates on Profit Before Tax Financial Results For personal use only US$m PBT 110 Impact 90 This point is the estimated contribution (+$28m) that derivatives and fixed deposits will make to PBT over the next twelve months assuming cash 70 rates remain at current levels 1% up contrib
Slide 58: Client Balances – Interest Rate Hedging
Client Balances – Financial Interest Rate Hedging Results For personal use only Interest Rate Hedging Based on average g total funds* held during 1H11 Current Strategy: - Continue to monitor medium term swap rates with the intention of accumulating cover should rates rise Policy: - Minimum hedge of
Slide 59: Appendix 2: Country Summaries
Appendix 2: Country Summaries Financial Results For personal use only Country Summaries 52
Slide 60: Australia Half Year Comparison
Australia Financial Half Year Comparison Results For personal use only 53
Slide 61: New Zealand Half Year Comparison
New Zealand Financial Half Year Comparison Results For personal use only 54
Slide 62: Hong Kong Half Year Comparison
Hong Kong Financial Half Year Comparison Results For personal use only 55
Slide 63: India Half Year Comparison
India Financial Half Year Comparison Results For personal use only 56
Slide 64: United States Half Year Comparison
United States Financial Half Year Comparison Results For personal use only 57
Slide 65: Canada Half Year Comparison
Canada Financial Half Year Comparison Results For personal use only 58
Slide 66: United Kingdom & Channel Islands Half Year Comparison
United Kingdom & Channel Islands Financial Half Year Comparison Results For personal use only 59
Slide 67: Ireland Half Year Comparison
Ireland Financial Half Year Comparison Results For personal use only 60
Slide 68: Germany Half Year Comparison
Germany Financial Half Year Comparison Results For personal use only 61
Slide 69: South Africa Half Year Comparison
South Africa Financial Half Year Comparison Results For personal use only 62
Slide 70: Russia Half Year Comparison
Russia Financial Half Year Comparison Results For personal use only 63
Slide 71: Appendix 3: Assumptions
Appendix 3: Assumptions Financial Results For personal use only Assumptions 64
Slide 72: Assumptions: Exchange Rates
Assumptions: Exchange Rates Financial Results For personal use only Average exchange rates used to translate profit and loss to US dollars USD 1.00000 AUD 1.08022 HKD 7 76847 7.76847 NZD 1.37543 INR 45.77128 CAD 1.03601 GBP 0.64200 EUR 0.76332 ZAR 7.23072 RUB 30.75594 AED 3.67303 DKK 5.68780 SEK 7.1