Computershare Limited Full Year Results 2009 Presentation Stuart Crosby Peter Barker Peter Barker 12 August 2009
CEO’s Report Financial Results Results I ntroduction 2
Introduction President & CEO Stuart Crosby b C S 3
Results Highlights Introduction Management Adjusted Results Management Adjusted Results FY09 FY08 FY09 versus FY08 FY09 at FY08 FY09 at FY08 exchange exchange rates versus FY08 rates versus FY08 rates Earnings per Share (Post OEI) 52.11 cents 51.61 cents Up 1% 59.65 cents Up 16% Total Operating Revenues $1,511.6m $1,582.5m Down 4% $1,680.1m Up 6% Operating Expenses $1,035.9m $1,106.0m Down 6% $1,143.6m Up 3% $475.5m $479.2m Earnings before Interest, Tax, Depreciation Down 1% $536.5m Up 12% and Amortisation (EBITDA) and Amortisation (EBITDA) EBITDA margin 31.5% 30.3% + 120 bps 32.0% + 170 bps $289.5m $290.4m Net Profit after OEI Flat $331.4m Up 14% Days Sales Outstanding (DSO) 40 days 44 days Down 4 days Cash Flow from Operations $341.5m $347.3m Down 2% $318.6m $304.5m Free Cash Flow Up 5% Capital Expenditure $22.9m $42.8m Down 46% N Net Debt to EBITDA ratio D b EBITDA i 1 67 i 1.67 times 1.64 times 1 64 i + 0.03 times 0 03 i AU11 cents AU11 cents Final Dividend Flat Dividend franking amount 50% 30% Up by 20% Note: all results are in USD except for dividend 4
Computershare Strengths Introduction › Strong balance sheet, low gearing and continued robust cash generation › More than 70% of revenue recurring in nature › Revenues, cash-flows and margins holding up reasonably well despite the challenging environment › Diversification into counter and non cyclical businesses strengthen revenue and profit base › › Computershare’s: Computershare s: › Globally diversified footprint (17 countries including China, India, Russia) › Unique cross-border transaction capabilities › Continued investment in R&D and product development › Ongoing operational efficiencies and significant cost reductions › › Strong balance sheet and cash flow generation Strong balance sheet and cash flow generation › Demonstrated ability to acquire and integrate businesses Leave us well positioned for an eventual up turn in the global economy 5
Outlook Introduction › We anticipate USD management earnings per share for financial year 2010 to p g g p y be similar to 2009 › Our outlook assumes that equity, interest rate and FX market conditions remain broadly consistent with current levels for the financial year remain broadly consistent with current levels for the financial year 6
CEO’s Report p Financial Results I ntroduction 7
Financial Results Peter Barker k CFO 8
Drivers Behind FY2009 Financial Performance Financial Results › Corporate action environment, shift from M&A and IPO’s to secondary capital p , y p raisings › Significant ongoing cost reductions and operating efficiencies › › Continued investments in and growing importance of counter and non cyclical Continued investments in, and growing importance of, counter and non cyclical businesses › Interest rate levels and client balances › Market softness in ‘traditional’ transfer agent and associated businesses › Foreign exchange 9
Group Financial Performance – US$m Financial Results Variance Variance FY09 FY08 FY09 to FY08 Sales Revenue 1,494.0 1,564.0 (4%) Interest & Other Income 17.6 18.6 (5%) Total Revenue 1,511.6 1,582.5 (4%) Operating Costs 1,035.9 1,106.0 (6%) Share of Net (Profit)/Loss of Associates 0.2 (2.7) Management EBITDA 475.5 479.2 (1%) Management Adjustments - Revenue/(Expense) (31.6) (7.3) Reported EBITDA 443.9 471.9 (6%) Statutory NPAT 252.5 282.0 (10%) Management NPAT 289.5 290.4 (0%) Management EPS 52.11 51.61 1% Statutory EPS 46.02 50.12 (8%) 10
Analysis of Management EPS Financial Results Half Year Comparison Half Year Comparison US cents 30 25 20 15 10 5 0 0 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 HY 6.60 9.52 8.82 13.92 17.86 18.83 27.36 24.25 26.14 25.97 FY FY 16.12 16 12 22 74 22.74 36 68 36.68 51 61 51.61 52 11 52.11 11
FY09 Management NPAT Analysis Financial Results $USm 400 1 EBITDA - EMEA 380 380 5.7 2 OEI 1.9 3.0 65.5 360 7.9 3 Depn & Amort p 340 26.7 4 Interest 320 5 Tax 300 290.4 289.5 42.5 6 EBITDA - AP 280 7 EBITDA - NA 260 FY08 NPAT 1 2 3 4 5 6 7 FY09 NPAT 12
Free Cash Flows Financial Results Operating cash flow vs capital e pendit capital expenditure e $USm 240 206.2 210 183.5 181.6 180 159.9 141.1 150 137.5 117.8 120 90 73.1 65.8 60 36.7 24.0 24 0 30 30 18.8 18 8 17.9 14.6 12.6 11.8 11.9 10.4 10.3 7.8 0 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Operating Cash Flows p g Capital Expenditure p p 13
Revenue & EBI TDA Financial Results Half Year Comparisons Half Year Comparisons Revenue EBITDA $USm $USm 788.2 794.3 783.0 800 300 724.4 728.7 694.0 694.0 700 257.4 250 238.6 626.7 588.1 236.9 600 221.8 200 500 188.7 456.0 181.7 400 150 354.5 140.4 300 99.7 100 93.1 200 65.4 50 100 0 0 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Revenue Management EBI TDA 14
Management EBI TDA Margin Financial Results Half Year Comparison Half Year Comparison EBITDA margin 35% 32.7% 32.5% 30.5% 30% 27.2% 27.9% 25% 22.4% 22 4% 25.1% 20.4% 18.5% 20% 17.0% 15% 10% 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 15
Revenue Breakdown – US$m Financial Results Variance FY09 FY08 FY09 t o FY08 736.2 817.6 (10% ) Register Maintenance 313.4 303.6 3% Corporate Actions 83.9 91.3 (8% ) ( ) Fund Services 73.9 89.0 (17% ) Stakeholder Relationship Mgt 98.4 119.0 (17% ) Employee Share Plans 146 6 146.6 105 3 105.3 39% 39% Communication Services Communication Services 59.3 56.8 4% Technology & Other Revenue Tot al Revenue Tot al Revenue 1 511 6 1,511.6 1 582 5 1,582.5 (4% ) (4% ) Note – Included in the revenue results are $170.3m of Margin Income (FY08: $217.5m) and $242.4m of Recoverable Income (FY08: $255.8m) 16
FY10 Regional Analysis & Revenue Breakdown (effective 1H FY10 (effective 1H FY10 – will include comparatives) will include comparatives) Regional Reporting Current Structure Going Forward North America USA Asia Pacific Canada Europe, Middle East & Africa Australia & NZ Asia Europe, Middle East & Africa Revenue Segments e e ue Seg e ts Current Structure Going Forward Register Maintenance Register Maintenance Corporate Actions Corporate Actions Fund Services Business Services* Stakeholder Relationship Management Stakeholder Relationship Management* * Employee Share Plans Employee Share Plans Communication Services Communication Services Technology & Other Technology & Other Technology & Other Technology & Other * Business Services – KCC, Administar, IML events (from Corporate Actions), Computershare Voucher Services & Deposit Protection Scheme (from Registry Maintenance) * * Fund Services now incorporated in Stakeholder Relationship Management 17
Margin I ncome Analysis Financial Results Average market interest rates: UK 4.55% 4.49% 4.78% 5.30% 5.71% 5.19% 4.16% 0.82% US 3.70% 4.66% 5.25% 5.25% 4.85% 2.67% 1.53% 0.27% Canada 2.79% 3.77% 4.25% 4.25% 4.45% 3.51% 2.58% 0.64% Australia 5.50% 5.58% 6.03% 6.25% 6.52% 7.12% 6.23% 3.35% Average balances (US$bn)* (US$bn) 6 4 6.4 6 4 6.4 6 4 6.4 7 0 7.0 8.7 8 7 8 7 8.7 7 2 7.2 6 4 6.4 * Note: some balances attract no interest or a set margin for Computershare 18
FY09 Revenue & EBI TDA Financial Results Regional Analysis Regional Analysis Total Revenue Total Revenue EBI TDA EBI TDA breakdown breakdown 17% 26% 43% 43% 46% 40% 28% Asia Pacific EMEA North America Asia Pacific EMEA North America 19
Operating Costs Financial Results Half Year Comparisons Half Year Comparisons $USm $ 600 500 137.4 137 4 141.2 147.4 139.7 137.0 133.2 138.9 144.5 400 300 200 350.6 406.7 355.2 404.9 395.4 345.0 367.4 426.2 100 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Operating Costs excl. COS l Cost of Sales (COS) f l ( ) 20
Technology Costs Financial Results Continued I nvestment to Maintain Strategic Advantage Continued I nvestment to Maintain Strategic Advantage $USm $USm 10.1% 10.3% 9.6% 10.0% 180 9.4% 6.5 160 6.7 8.0% 6.5 140 41.3 38.2 3.6 120 6.0% 41.6 100 100 50.0 44.6 45.3 80 4.0% 40.6 60 21.4 40 0 2.0% 64.8 63.6 43.3 20 40.5 0 0.0% FY06 FY06 FY07 FY07 FY08 FY08 FY09 FY09 Development Infrastructure Maintenance Admin Technology costs as a % of sales revenue 21
Balance Sheet as at 30 June 2009 Financial Results Variance Jun-09 Jun-08 Jun-09 to Jun-08 US$'000s US$'000s Current Assets 537,013 516,129 4% Non Current Assets 1,960,523 1,721,889 14% Total Assets 2,497,537 2,238,018 12% Current Liabilities 414,934 436,912 (5% ) Non Current Liabilities 1,181,434 1,030,910 15% Total Liabilities 1,596,369 1,467,822 9% T t l E Total Equity it 901 168 901,168 770 196 770,196 17% 17% 22
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