COMPUTERSHARE 2019 ANNUAL GENERAL MEETING 13 November 2019
2019 ANNUAL GENERAL MEETING Chairman’s address Simon Jones Chairman 13 November 2019
Executive summary Management results FY19 guidance affirmed Revenue EBITDA EPS $2,411.4m 4.8% $685.9m 10.2% 71.46 cents 12.8% FY19 Management EPS increased by 12.8% with improved performances from all major business lines; margin income gains and a reduced tax rate. Management results are expressed in constant currency. Constant currency equals FY19 results translated to USD at FY18 average exchange rates. All figures in this presentation are presented in USD millions, unless otherwise stated. 3
Long term shareholder returns Free cash flow Dividend per share $3.4bn generated $1.7bn distributions paid 450 50 45 400 40 350 35 300 30 AUD cents 250 USD m 25 200 20 150 15 100 10 50 5 0 0 FY10 11 12 13 14 15 16 17 18 FY19 FY10 11 12 13 14 15 16 17 18 FY19 Free cash flow excludes SLS advances. Numbers at Actual fx rates 4
Corporate Responsibility Community Raised Raised over AUD 9.3 AUD over AUD million 760,150 AUD 170,000 300,000 to date Our global charity: World Raised for Change A Life Donated to our Trek Nepal Trek Nepal Youth International – Nepal since launch projects in FY19 2018 2019 Focus for FY20 Run another successful Trek Nepal and raise at least AUD 150,000 Review our selected local charities to ensure they are meeting our expectations Increase global employee participation in Change A Life to 10% 5
Corporate Responsibility Sustainability In the 1970s, Computershare pioneered electronic platforms for managing share registers. Forty years later, all our global businesses continue to champion the use of innovative technology to enable our clients to reduce the environmental footprint of their own activities. Focus for FY2020 Continue the work achieved so far with our Green Office Challenge 9 staff initiatives and roll out the 10 th Challenge Work towards eliminating as much single-use plastic as possible in Computershare offices Further focus on Green IT to reduce our carbon footprint 6
2019 ANNUAL GENERAL MEETING CEO’s address Stuart Irving Chief Executive Officer and President 13 November 2019
Enhancing the AGM Global business presentations Naz Sarkar Stuart Swartz Francis Catterall Nick Oldfield Issuer Services Corporate Trust Employee Share Mortgage Services Plans 8
Quality recurring revenues and consistent high returns 10 year track record: Recurring revenue CAGR 8.4%, EBITDA margin 27.5% * , ROE 26.9% * 3,500 30% 3,000 25% 2,357 2,500 2,301 EBITDA margin/ROE 2,114 Total Revenue 2,025 2,023 1,976 1,974 20% 2,000 1,819 542 529 USD m 1,620 1,619 465 % 454 506 474 567 15% 1,500 546 615 10% 745 1,000 5% 500 875 1,004 1,273 1,458 1,517 1,522 1,500 1,649 1,772 1,815 0 0% FY10 11 12 13 14 15 16 17 18 FY19 Recurring Non recurring EBITDA Margin ROE Based on 10 year average 9 Numbers at actual fx rates
Key messages Designing and investing in long-term growth strategies Enhancing growth engines, improving efficiencies, expanding the moats New global product aligned management structure to position for next growth stage Focus on new product development and evolving customer needs Disciplined execution of key priorities drives performance Generating strong free cash flow to self-fund growth and shareholder returns 10
FY19 key priorities – execution scorecard Disciplined execution drives growth and profitability PROGRESS PROGRESS RESULT RESULT 1. INVEST IN 4. TRANSITION THE FUTURE OF TO GLOBAL Shift from regional structure to Equatex acquired, technology OUR PLANS BUSINESS improve customer focus and integration underway, BUSINESS LINES strategic planning for new customer service enhanced growth opportunities PROGRESS RESULT PROGRESS RESULT 2. EXECUTE OUR 5. EXPAND OUR MORTGAGE Develop a new 5 year plan for GLOBAL Optimise Shared Services to SERVICES the combined global business SERVICE MODEL drive efficiencies and best STRATEGIC with ongoing growth in the US. STRATEGY practice. Build capabilities in PLANS Migrate UK 3rd party loans to optimum locations CPU's platform PROGRESS PROGRESS PROGRESS RESULT RESULT 3. RETURN 6. PROGRESS ISSUER Drive organic growth through OUR STAGE Drive digitisation and leverage SERVICES TO new services to clients and 1, 2 & 3 data to improve operational ORGANIC shareholders with a seamless EFFICIENCY processes and enhanced GROWTH approach to front office and INITIATIVES customer services new product development 11
FY20 outlook - affirmed In August, we said that we expect Management EPS for FY20 to be down around 5% in constant currency: outlook affirmed - Operating performance year to date is in line with expectations › Mortgage Services and Employee Share Plans are performing ahead of plan › Corporate actions and margin income are modestly weaker than expected - Refer to August presentation for guidance assumptions – to be updated at the 1H FY20 results 12
2019 ANNUAL GENERAL MEETING Issuer Services Naz Sarkar Global Head of Issuer Services 13 November 2019
The strength of our current Issuer Services business Issuer Services has scope for long term growth $316m $1.41bn $190m Estimated total available $158m revenue in chosen markets $37m 50% $951m of an 20% estimated $2.13bn $707m total in chosen markets (45%) Corporate Actions Georgeson Total global Computershare revenue for our chosen $60m markets $155m 50% $30m $19m 50% 12.5% Register Maintenance Governance Services Fund Proxy Services (US only) Management estimates based on FY19 Revenues at actual fx rates 14
High quality earnings and margin improvement Long-term EBITDA margin 27.3% 33.7% 2,000 35% 31.8% 30.8% 1,800 29.1% 29.1% 28.8% 30% 27.7% 1,600 25% 23.0% 1,400 EBITDA margin % 20.7% 1,200 18.7% 20% USD m 1,000 1,079 1,056 1,030 1,024 1,010 982 974 15% 946 951 909 800 600 10% 400 5% 317 320 309 200 286 280 272 264 243 212 202 - 0% FY10 11 12 13 14 15 16 17 18 FY19 Revenue EBITDA EBITDA Margin Numbers at actual fx rates 15
Large and complementary growth opportunities – leveraging the core Adjacent markets estimated to be $3bn+ • New private market wins Private Markets • Continuing to improve our offer (Addressable • New dedicated management market* - $1bn) team Registered Agent • New registered agent wins Services • New sales and management (Addressable focus market* - $1bn to $1.2bn) • Investing in new leadership Governance team Services • New Governance Services wins (Addressable market* - $1bn ) • Building new service options * Management estimates 16
Executing on our plan Investing in revitalised front office and product development Building on Significant Market structure Operational Governance new wins changes transformation Services › GEMS – world leading › Prepared for Brexit › New Global Issuer entity management innovation capability in software › Actively engaged in place proposed AU market “Computershare was the right fit › New managed service structure changes › Implementing next phase for Microsoft. They have offer of global operations technology solutions for us and transformation our investors, a wide range of › New expert advisory issuer services and a great team capability of experienced people” Microsoft Investor Relations 17
2019 ANNUAL GENERAL MEETING Corporate Trust Stuart Swartz Global Head of Business Services 13 November 2019
Corporate Trust Introduction Corporate Trust is a federation of products, however, many of these products require similar platforms, processes and knowledge. Registry Maintenance Disbursement and Tax Reporting Debt, exempt market securities, asset backed securities, Principal and interest payments to investors and warrants and subscription receipt investment classes public-private partnerships Custodian and Fiduciary Services Escrow Agent Cash, securities, and financial intermediary for the Quebec Cash, securities, source codes, documents and Immigrant Investor Program other assets Paying Agent Trustee Services Paying and fiscal agent for debt securities and Issuer trustee, indenture trustee, voting trusts, warrant conversions charitable trusts, reclamation trusts, royalty trusts, mineral trusts, diversified trusts and registered plan trusts 19
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