Computershare Limited · ASX:CPU
Computershare — CLSA Investors' Forum 2018
16 slides from Computershare's conference presentation, Sep 13, 2018
Slide 1: Market Announcement: CLSA Investors' Forum 2018
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 For personal use only www.computershare.com Date: 13 September 2018 To: Aus
Slide 2: Delivering multi-year earnings growth
Delivering multi- year earnings For personal use only growth CLSA Investors’ Forum 2018 Stuart Irving Chief Executive Officer and President 13 September 2018
Slide 3: Company overview
Company overview A leading global provider of administration services in our selected markets Who we are For personal use only › Global market leader in transfer agency and share registration, employee equity plan administration, proxy solicitation and stakeholder communications › Also specialise in
Slide 4: FY18 Computershare at a glance
FY18 Computershare at a glance Management revenue @ CC Management EBITDA @ CC For personal use only Canada ANZ ANZ Canada 9% 11% 4% Asia 14% 9% Asia By geography 7% UCIA 17% $2,247.7m UCIA $609.7m 21% CEU USA 3% 48% CEU USA 4% 53% Communication Services Corporate & Technology Communication Services,
Slide 5: Executive summary
Executive summary FY18 solid results, fastest rate of earnings growth since FY09 For personal use only Management results1 Revenue EBITDA EPS $2,247.7m 6.3% $609.7m 12.7% 62.10 cents 14.1% Statutory EPS Free cash flow Dividend per share Actual Actual Final 55.17 cents2 13.1% $379.2m3 4.7% AU 21 cent
Slide 6: Good progress on executing strategic priorities
Good progress on executing strategic priorities Growth Profitability Capital Management For personal use only › Mortgage Services EBITDA › Group EBITDA margin › Free cash flow of $379.2m, up 65.4% to $122.4m, continues to rise to 27.1% funds increased MSR growth 22.4% margin (up 150bps) investments,
Slide 7: Growth: Mortgage Services
Growth: Mortgage Services Strong profit growth, EBITDA +65.4%, execution tracking to plan FY18 @ CC FY17 Actual CC Variance For personal use only US Mortgage Services revenue $306.1 $257.2 +19.0% UK Mortgage Services revenue $240.1 $239.8 +0.1% Total Mortgage Services revenue $546.2 $496.9 +9.9% Tot
Slide 8: UK Mortgage Services: Future revenue and profit expectations
UK Mortgage Services: Future revenue and profit expectations Book expected to turn to positive organic growth by FY20 / FY21 For personal use only UK Mortgage Services Revenue & EBITDA FY18 – FY23 UKAR Related Revenues Servicing revenues decline as book amortises - £240m UKAR fixed fee received over
Slide 9: Growth: Employee Share Plans
Growth: Employee Share Plans Laying the foundations for future growth FY18 @ CC FY17 Actual CC Variance For personal use only Transactional revenue $83.0 $79.3 +4.7% Fee revenue $104.4 $106.9 -2.3% Margin income $16.2 $16.5 -1.8% Other revenue $17.8 $17.7 +0.6% Total Employee Share Plans revenue $22
Slide 10: Profitability: Margin income
Profitability: Margin income 2H18 margin income highlights leverage to rising interest rates For personal use only 18.0 17.3 140.0 16.0 16.6 16.8 16.6 16.3 15.1 15.2 15.0 14.0 14.4 120.0 14.0 Sharp improvement 12.0 Average Client Balances from cyclical for period USD million for period USD billion 1
Slide 11: Breakdown of client balances
Breakdown of client balances Significant leverage to rising interest rate cycle – 11.4bn of average exposed balances in FY18 For personal use only USD 17.0bn Assuming an Total balances increase of 100bps on our FY18 exposed non-hedged balances ($8.5bn) CPU would generate an additional $85m USD 5.6bn
Slide 12: Global Registry returns to organic growth in 2HFY18
Global Registry returns to organic growth in 2HFY18 High quality revenues and ongoing margin expansion For personal use only 1,000 50.0% 900 45.0% 152.1 140.9 135.7 800 140.2 40.0% 125.8 158.7 700 35.0% 33.5% EBITDA Margin 600 30.0% USD millions 31.7% 30.5% 28.8% 500 25.0% 25.5% 400 20.0% 18.8% 300
Slide 13: Profitability: Structural cost out programs progressing well
Profitability: Structural cost out programs progressing well Stages 1, 2 and 3 total gross savings of $125m - $155m affirmed For personal use only Total cost Benefit realisation (cumulative) Activity savings estimates $m FY17A FY18A FY19E FY20E FY21E FY22E FY23E Stage 1 Total 25 - 30 7.8 14.0 19.6 2
Slide 14: Capital management
Capital management: Free cash flow funds growth, debt reduction and enhanced returns Cash generative, high returns business model For personal use only › Free cash flow of $379.2m, up 4.7%. Recurring revenues, high margins and low maintenance capex, funds growth investments and shareholder returns ›
Slide 15: Summary: Delivering multi-year earnings growth
Summary Delivering multi-year earnings growth For personal use only Laying the foundations for Purposefully designed Growth, Optionality converting into sustained growth, extending our Profitability and Capital profitability; margin income, competitive moats and executing Management strategies corpo
Slide 16: 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