computershare limited full year results 2011 presentation€¦ · management net profit after nci...
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Computershare LimitedFull Year Results 2011 Presentation
Stuart CrosbyPeter Barker
10 August 2011
2
IntroductionFinancial Results
CEO’s Report
PRESIDENT & CHIEF EXECUTIVE OFFICER
Stuart Crosby
Introduction
4
Note: all results are in USD millions unless otherwise indicated
Results HighlightsManagement Adjusted Results
Introduction
FY 2011 FY 2010 v FY 2010FY 2011 @ FY 2010
exchange rates
Management Earnings per share (post NCI) US 55.67 cents US 57.80 cents Down 3.7% US 54.09 cents
Total Revenue $1,618.6 $1,619.6 Down 0.1% $1,566.5
Operating Expenses $1,125.4 $1,111.3 Up 1.3% $1,087.5
Management Earnings before Interest, Tax,
Depreciation and Amortisation (EBITDA) $493.6 $510.9 Down 3.4% $479.0
EBITDA Margin 30.5% 31.5% Down 100 bps 30.6%
Management Net Profit after NCI $309.3 $321.2 Down 3.7% $300.7
Days Sales Outstanding 41 days 41 days Flat
Cash Flow from Operations $319.6 $414.5 Down 22.9%
Free Cash Flow $296.2 $357.4 Down 17.1%
Capital Expenditure $32.2 $93.9 Down 65.7%
Net Debt to EBITDA ratio 1.35 times 1.40 times Down 0.05 x
Final Dividend AU 14 cents AU 14 cents Flat
Final Dividend franking amount 60% 60% Flat
5
Computershare Strengths
› Strong balance sheet, low gearing and continued robust cash generation.
› Diversification into counter and non cyclical businesses gives stability to revenue and profit base.
› More than 70% of revenue recurring in nature.
› Demonstrated ability to acquire and integrate businesses that add to shareholder value.
› Global footprint (in all major markets and 20 plus countries including China, India, Russia) supports unique cross-border transaction capabilities.
› Consistent investment in R&D and product development provides strong platform for the future.
› Sustained record for delivering service and product innovation, quality improvements, operational efficiencies and cost reductions.
Introduction
Trading environment
› In a difficult environment, annuity revenue lines such as register maintenance, employee share plans, communications services, corporate trust (Canada), voucher services (UK) and the deposit protection scheme (UK) continue to hold up well.
› Net margin income is also holding up due significantly to increased client balance capture.
› However transactional revenue lines remain challenged, with soft corporate actions levels across the world, low levels of mutual fund solicitation projects and subdued levels of Chapter 11 bankruptcy filings in the US.
› Cost management remains a key focus. But as foreshadowed last year there was some cost catch up in FY11. Interest costs also increased as a result of higher margins on bank facilities renewed.
› Despite flat revenues, we maintained our levels of investment in technology. This is vital to our capacity to execute on inorganic growth opportunities, such as the proposed (subject to regulatory clearance) acquisition of the Bank of New York Mellon’s shareowner services business.
6
Introduction
Investment
› Major acquisitions announced during the year include the Bank of New York Mellon’s shareowner services business (still subject to regulatory clearance), and Servizio Titoli in Italy.
› We continue to make good progress on integrating recently acquired businesses, including the HBOS EES business, which delivered significantly improved results in FY11 with further benefit expected in the next period.
› We are also examining several other acquisition opportunities, mainly in non-traditional business lines. But we will not prejudice our capacity to resource and fund the integration of the BNY Mellon shareowner services business.
7
Introduction
Guidance
› Looking forward to FY12, the impact and duration of current market volatility are unclear. This makes us even more cautious about guidance than usual.
› A week ago, we would have said that we do not expect management eps results from Computershare’s current portfolio of businesses in FY12 to be significantly different from those achieved in FY11. That guidance would have assumed that equity, interest rate and FX market conditions remain broadly consistent with then current levels for the rest of the financial year, an assumption that is no longer valid.
› In the past, high levels of volatility and uncertainty have been followed by quite strong activity levels in a range of our revenue lines, with revenues for secondary fundraisings and chapter 11 bankruptcy administration, for instance, replacing anticipated dealing, IPO and M&A income. Of course, it is by no means certain that will be the case this time.
› As usual, we will update the market on our view of the outlook at the Annual General Meeting in November.
8
Introduction
9
IntroductionFinancial Results
CEO’s Report
CHIEF FINANCIAL OFFICER
PETER BARKER
10
FinancialResults
11
Drivers Behind FY 2011 Financial Performance
› Continued solid delivery in subdued market conditions of recurring revenues across the year, business lines and geographies. Non-equity market businesses (Corporate Trust, Deposit Protection Scheme, Voucher Services) generally performed well, though our U.S. Bankruptcy and Funds Services businesses were off historic highs achieved in FY10.
› Ongoing cost and capex discipline, however resumption of annual compensation reviews did impact margins (as predicted).
› Growth of client balance levels contributed to an excellent margin income outcome.
› As forecast, our own interest costs felt the effects of a full year of increased credit spreads from our club debt facility (facility renewed May 2010).
› Foreign exchange impacts both the P&L and balance sheet – reflecting the generally weaker USD vs GBP/CAD/AUD.
FinancialResults
12
Group Financial Performance
Note: all results are in USD millions unless otherwise indicated
FinancialResults
Sales Revenue $1,598.9 $1,599.6 (0.0%)
Interest & Other Income $19.7 $20.0 (1.6%)
Total Revenue $1,618.6 $1,619.6 (0.1%)
Operating Costs $1,125.4 $1,111.3 1.3%
Share of Net (Profit)/Loss of Associates ($0.4) ($2.6)
Management EBITDA $493.6 $510.9 (3.4%)
Management Adjustments - Revenue/(Expense) ($10.5) ($5.7)
Reported EBITDA $483.1 $505.2 (4.4%)
Statutory NPAT $264.1 $294.8 (10.4%)
Management NPAT $309.3 $321.2 (3.7%)
Management EPS US 55.67 cents US 57.80 cents (3.7%)
Statutory EPS US 47.53 cents US 53.05 cents (10.4%)
FY10FY11% variance
to FY 2010
13
Management EPS FinancialResults
26.14
31.38
26.9625.97 26.4228.71
52.11
57.8055.67
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2009 2010 2011
US
Ce
nts
1H 2H FY
14
FY 2011 Management NPAT Analysis
321.2
309.3
8.1 3.3
2.5 1.517.4
1.818.3
2.412.0
9.8
4.2
250.0
270.0
290.0
310.0
330.0
350.0
US
$ m
illi
on
FinancialResults
15
Revenue & EBITDAHalf Year Comparisons
FinancialResults
783.0
728.7
807.5 812.1781.0
837.6
238.6 236.9274.8
236.1 246.0 247.6
30.5%
32.5%34.0%
29.1%
31.5%29.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
100
200
300
400
500
600
700
800
900
1H09 2H09 1H10 2H10 1H11 2H11
Op
era
tin
g M
arg
in %
Re
ve
nu
e &
EB
ITD
A (
US
$ m
illi
on
)
Revenue Management EBITDA Operating Margin
16
Revenue Breakdown FinancialResults
Register Maintenance $698.5 $660.2 5.8% $367.7 $330.8 $342.9 $317.3
Corporate Actions $179.5 $183.2 (2.0%) $82.7 $96.8 $71.0 $112.2
Business Services $266.1 $276.3 (3.7%) $134.9 $131.2 $136.5 $139.8
Stakeholder Relationship Mgt $97.1 $163.5 (40.6%) $57.6 $39.5 $81.9 $81.6
Employee Share Plans $157.6 $119.7 31.6% $83.6 $74.0 $70.1 $49.6
Communication Services $172.2 $159.0 8.3% $87.5 $84.7 $80.9 $78.1
Technology & Other Revenue $47.8 $57.6 (17.0%) $23.6 $24.1 $28.8 $28.8
Total Revenue $1,618.6 $1,619.6 (0.1%) $837.6 $781.0 $812.1 $807.5
1H 20102H 2010FY 2010
FY 2011
variance to
FY 2010
Revenue Stream 1H 20112H 2011FY 2011
17
FY 2011 Revenue & EBITDARegional Analysis
Total Revenue breakdown EBITDA breakdown
* Group functions have been allocated and reported within the six regions.
23%
8%
19%
6%
32%
13%
Australia & NZ
Asia
UCIA
Continental Europe
USA
Canada
15%
10%
24%
3%
27%
20%
FinancialResults
Regional Reporting
Previous Structure Current Structure
Australia & NZ Australia & NZ
Asia Asia
USA USA
Canada Canada
Europe, Middle East & Africa UCIA ( UK, Channel Islands , Ireland & Africa )
Continental Europe ( Germany, Scandinavia, Russia & Italy )
18
•Note: some balances attract no interest or a set margin for Computershare.
• Source: UK – Bank of England MPC Rate; US – Federal Reserve Fed Funds Rate; Canada – Bank of Canada Overnight Target Rate; Australia –Reserve Bank of Australia Cash Rate
Margin Income Analysis
Average Market Interest rates
1H09 2H09 1H10 2H10 1H11 2H11
UK 4.6% 0.82% 0.50% 0.50% 0.50% 0.50%
US 1.53% 0.27% 0.25% 0.25% 0.25% 0.25%
Canada 2.58% 0.64% 0.25% 0.29% 0.88% 1.00%
Australia 6.23% 3.35% 3.24% 4.10% 4.58% 4.76%
FinancialResults
86.4 83.974.5 77.5
84.587.0
7.2
6.4
8.2
8.8 9.2
11.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
1H09 2H09 1H10 2H10 1H11 2H11
US
$ B
illi
on
US
$ M
illi
on
Margin Income Average balances
19
FY11 Client Balances –Interest Rate Exposure
No exposure28% ($2.8b)
Effective hedging: natural
8% ($0.8b)
Effective hedging:
derivative / fixed
rate22% ($2.3b)
Exposure to interest rates42% ($4.3b)
Total funds (USD 10.2b) held during FY11
CPU had an average of USD10.2b of client funds under management during FY11.
For 28% ($2.8b) of the FY11 average client funds under management, CPU had no exposure to interest rate movements either as a result of not earning margin income, or receiving a fixed spread on these funds.
The remaining 72% ($7.4b) of funds are “Exposed” to interest rate movements. For these funds: 22% had effective hedging in place (being either derivative or fixed rate deposits) 8% was naturally hedged against CPU’s own floating rate debt
The remaining 42% was exposed to changes in interest rates.
FinancialResults
FY11 Client Balances –Interest Rate Exposure and Currency
20
AUD
3% ($0.1b) CAD
14% ($0.6b)
GBP
40% ($1.7b)
USD
31% ($1.3b)
Other
12% ($0.6b)
“Exposed Funds” by Currency (FY11 Average Balances)
Average exposed funds balance net of
hedging US$4.3b
($10.2b x 42%)
AUD
3% ($0.2b)
CAD
16% ($1.2b)
GBP
44% ($3.2b)
USD
30% ($2.2b)
Other
7% ($0.6b)
Average exposed funds balance prior to any
hedging US$7.4b
($10.2b x 72%)
Total Exposed Funds(both hedged and non-hedged)
Non-hedged Exposed Funds
FinancialResults
Client Balances –Forward view of Hedges
21
0
500
1,000
1,500
2,000
2,500
3,000
Jul-11 Jul-12 Jul-13 Jul-14 Jul-15
Total Synthetic Hedging (derivatives & term deposits)
US$m Total hedges
Derivative and Fixed Rate Deposits in place at 30-Jun-11
FinancialResults
22
Client Balances –Interest Rate Hedging Policy and Strategy
Policy:
Minimum hedge of 25% / Maximum hedge of 100%
Minimum term 1 year / Maximum term 5 years
(some exceptions permitted under the Board policy)
Current Strategy:
Continue to monitor medium term swap rates with the intention of accumulating cover should rates rise materially
FinancialResults
23
Operating Costs Half Year Comparisons
FinancialResults
406.7
350.6396.8
427.1395.4
436.2
137.4
141.2
138.8
148.6
139.6
154.2
0
100
200
300
400
500
600
700
1H09 2H09 1H10 2H10 1H11 2H11
US
$ m
illi
on
Operating costs excl. COS Cost of Sales (COS)
24
Operating CostsHalf Year Comparisons
* Corporate operating costs have been allocated and reported under the five main cost categories – cost of sales, personnel, occupancy, other direct and technology. Technology costs include a portion of personnel, occupancy and other direct costs attributable to technology services.
FinancialResults
13
7.4
26
3.8
37
.7
23
.0
82
.2
14
1.2
22
6.6
32
.3
20
.4
71
.3
13
8.8
26
3.7
30
.3
22
.7
80
.0
14
8.6
28
3.7
34
.8
26
.8
81
.8
13
9.6
25
6.1
33
.9
24
.6
80
.7
15
4.2
29
3.4
34
.6
28
.9
79
.3
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Cost of Sales Personnel Occupancy Other Direct Technology
US
$ m
illi
on
1H09 2H09 1H10 2H10 1H11 2H11
25
Technology CostsContinued Investment to Maintain Strategic Advantage
The basis for calculating and classifying technology costs has been revised from 1 July 2010. Partly this reflects changes in reporting structures, where technology workers previously embedded within business units are now part of the global technology group, and partly it corrects some inconsistencies that had developed over time. While the aggregate spend does not change materially, the FY11 numbers are compiled on the revised basis.
FinancialResults
36.627.0
32.9 33.0 28.8 26.6
23.2
22.1
23.3 26.3
20.2 23.9
18.5
19.7
19.919.0
27.6 26.1
4.4
2.3
3.9 3.4 4.1 2.7
10.7%
9.9%10.0% 10.1% 10.3%
9.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
20
40
60
80
100
120
1H09 2H09 1H10 2H10 1H11 2H11
Te
ch
no
log
y c
osts
as a
% o
f re
ve
nu
e
US
$ m
illi
on
Development Infrastructure Maintenance Admin Technology costs as a % of revenue
26
Free Cash Flows
Notes: 1. * US$49.7m includes acquisition of Land and Buildings in the UK (US$34.7m).2. ** US$15.4m excludes assets purchased through finance leases which are not cash outlays.
**
FinancialResults
159.9
181.6
206.7 207.7
148.4
171.2
12.6 10.3
49.7 *
7.3 8.0 15.4 **
0
50
100
150
200
250
1H09 2H09 1H10 2H10 1H11 2H11
US$
mill
ion
Operating Cash Flows Cash outlay on Capital Expenditure
27
FY 2011 Operating Cash Flows Analysis FinancialResults
414.5
319.6
22.924.1
32.5109.4
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
US
$ m
illi
on
28
Balance Sheet as at 30 June 2011FinancialResults
Jun-11 Jun-10 Variance
US$'000 US$'000Jun-11 to
Jun-10
Current Assets $733,928 $653,512 12.3%
Non Current Assets $2,139,310 $2,036,943 5.0%
Total Assets $2,873,238 $2,690,455 6.8%
Current Liabilities $538,456 $497,347 8.3%
Non Current Liabilities $1,089,326 $1,120,156 (2.8%)
Total Liabilities $1,627,782 $1,617,503 0.6%
Total Equity $1,245,456 $1,072,952 16.1%
29
Key Financial Ratios
EBITDA Interest Coverage Net Financial Indebtedness to EBITDA
FinancialResults
10.413.3
22.1 22.3
17.015.1
0.0
5.0
10.0
15.0
20.0
25.0
1H09 2H09 1H10 2H10 1H11 2H11
Tim
es
1.72 1.671.42 1.40 1.42 1.35
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
1H09 2H09 1H10 2H10 1H11 2H11
Tim
es
Jun-11 Jun-10 Variance
US$ Mn US$ MnJun-11 to
Jun-10
Interest Bearing Liabilities $1,013.5 $994.0 2.0%
Less Cash ($347.2) ($278.7) 24.6%
Net Debt $666.3 $715.4 (6.9%)
Management EBITDA (rolling 12 months) $493.6 $510.9 (3.4%)
Net Debt to Management EBITDA 1.35 1.40 (3.6%)
30
Debt Facility Maturity Profile
** The white $550M FY13 bar is the Bank of New York Mellon acquisition bridge facility that matures in July 2012. This facility remains undrawn and should the BNY-M acquisition occur, we will draw on it at point of acquisition and then replace it with long term debt.
FinancialResults
123.0
297.7
140.0
124.5
21.0
235.0
123.0
300.0 300.0
124.5
21.0
235.0
550.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
US
$ m
illi
on
Debt Drawn USPP Bridge Facility
**Maturity Dates
Debt Committed Bank Private Placement
Drawn Debt Facilities Debt Facility Facility
FY12 Mar-12 123.0 123.0 123.0
FY13 Jul-12 550.0 550.0
May-13 297.7 300.0 300.0
FY14 May-14 140.0 300.0 300.0
FY15 Mar-15 124.5 124.5 124.5
FY16
FY17 Mar-17 21.0 21.0 21.0
FY18
FY19 Jul-18 235.0 235.0 235.0
TOTAL 941.2 1,653.5 1,150.0 503.5
31
Capital Expenditure vs. Depreciation FinancialResults
1H09 2H09 1H10 2H10 1H11 2H11
Other 0.5 0.2 3.0 3.0 2.0 1.8
Occupancy 3.0 0.7 35.9 30.0 1.0 2.5
Communication Services Facilities 1.9 1.2 1.7 0.8 1.0 4.6
Information Technology 7.2 8.2 9.2 10.4 4.7 14.6
Depreciation 14.3 13.1 15.1 16.4 16.0 18.6
12.610.3
49.7
44.2
8.7
23.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
US
$ m
illi
on
32
Working Capital Management FinancialResults
3840 40
41
38
41
0
5
10
15
20
25
30
35
40
45
1H09 2H09 1H10 2H10 1H11 2H11
No
. O
f D
ays
Days sales outstanding
33
Return On Invested Capital Vs. WACC andReturn on Equity
FinancialResults
10.57% 10.41% 9.83%
17.98% 17.36% 16.94%
36.10%
31.44%
26.93%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
FY09 FY10 FY11
WACC ROIC ROE
Equity Management – Final Dividend of 14 cents (AU)
34
FinancialResults
EPS - Basic US 47.53 cents
EPS - Management US 55.67 cents
Interim Dividend AU 14 cents (60% franked)
Final Dividend AU 14 cents (60% franked)
Current Yield* 3.8%
* Based on 12 month dividend and share price of AU$ 7.34 (close 5 August 2011)
35
Financial Summary – Final Remarks
› Second highest management EPS in group’s history in difficult market conditions.
› Diverse portfolio of revenues, disciplined expense, cost and capital expenditure management continue to drive solid margins and strong free cash flow.
› Maintained strong and conservative balance sheet.
› Final dividend maintained at AUD 14 cents per share, franked to 60% (unchanged).
› Full year dividends maintained at AUD 28 cents per share, with average franking increasing from 55% to 60%.
FinancialResults
36
IntroductionFinancial Results
CEO’s Report
PRESIDENT & CHIEF EXECUTIVE OFFICERCEO PRESENTATION
Stuart Crosby
37
CEO’sReport
Group Strategy and Priorities
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.
› Continue to seek acquisition and other growth opportunities where we can add value and enhance returns for our shareholders.
In addition, we continue to commit priority resources in two areas:
› Continuing to lift our market position.
› Engaging with a range of proposals and projects around the globe that look to change the legal and/or operational structure of securities ownership and of communications between issuers and investors (we refer to these matters as “market structure”).
38
CEO’sReport
39
Delivery Against Strategy
Delivering on the first 2 limbs of the strategy (cost & revenue) has been a key priority:
› Operational productivity and quality continues to improve across the globe.
› Revenue initiatives continue to offset to some extent revenue drag from GFC client losses, low interest rates and soft volumes in transactional area.
› Our position at the top of independent service surveys evidences our quality achievements, and supports client retention and pricing.
In April 2011, we announced two significant transactions:
› The acquisition of Servizio Titoli (ST). This transaction closed before the end of FY11 and ST made a better than expected contribution to the FY11 result.
› The proposed acquisition of The BNY Mellon shareowner services business. This acquisition is subject to anti-trust clearance which has not yet been obtained.
We are examining several other acquisition opportunities, mainly in non-traditional business lines. But we will not prejudice our capacity to resource and fund the integration of the BNY Mellon shareowner services business.
CEO’sReport
40
Other priorities - Market Position and Market Structure
› We continue to enhance the quality of our operational and client directed processes, and to develop and launch new and enhanced products across the full range of our businesses.
› Third party shareholder and issuer satisfaction 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.
› Our market position is also significantly enhanced by our leading role as an advocate of issuer interests, and transparency in particular, in relation to a range of market structure issues.
› Turning to specific market structure issues:
› The US SEC has not said what it will do after its proxy concept release.
› We have invested heavily in understanding a range of EU regulatory and market structure reforms (CSD Law, Securities Law Directive, Target 2 Securities), participating in a wide range of consultation exercises, and issuer and issuer agent lobbying efforts.
› We continue to work on market development projects in HK, China & Russia.
CEO’sReport
USA Update
› Pending regulatory clearance, a strong integration team led by Stuart Irving and Mark Davis is being assembled for the BNY Mellon shareowner services integration. Planning well advanced to ensure quality migrations and undisrupted service for existing clients.
› Service levels, quality and survey scores remain excellent across all businesses.
› Winning new clients – eg, BB&T (formerly insourced TA) and re-signing large existing clients. But competition in the TA space esp at the top end remains very strong with Wells, AST, Broadridge and others very active.
› Volumes of project-driven work at Funds Services and KCC continue to soften (Resourcing reduced in parallel, but profits still hit).
› Push to build the class-actions footprint continues to bear fruit.
› M&A remains quiet, hurting corporate actions and proxy revenues.
› No response from the SEC as yet on its “proxy plumbing” consultation.
› Low interest rates and general economic conditions continue to drag on revenues.
41
CEO’sReport
42
Canada Update
› Increased tender activity amongst large clients (ours and not ours) is putting pressure on pricing.
› Winning a good number of new TA mandates more generally.
› Plans business continues to do well post disposal of the stock options business to Solium Capital.
› Corporate actions are very slow, impacting both investor services and proxy solicitation.
› Operations restructure is delivering increased automation and well received new products (eg, new electronic service with Canadian Depository for Securities for broker stock movements into CDS).
› Low interest rates and general economic conditions drag across a range of the Canadian businesses.
CEO’sReport
43
UCIA Update
› Migration and integration of the former HBOS Employee Equity Solutions business progressing well with sharesave migrations completed, Jersey well advanced, and the financial benefits of those processes meeting or exceeding expectations.
› Aviva register and plans successfully migrated from Equiniti.
› New management in the Voucher Services business has improved commercial outcomes – better understanding of cost to serve leading to more accurately priced tenders, especially for highly price-sensitive public sector mandates.
› Deposit Protection Scheme continues to grow, with opportunities to expand within the UK to Scotland (most advanced) and other countries
› Ireland holding up well and ETF sector continues to provide good opportunities.
› South African corporate activity subdued.
› Low interest rates and general economic conditions dragging on all businesses
CEO’sReport
44
Continental Europe Update
› The November 2011 restructure to break out Continental Europe as a region on its own is already delivering benefits. A range of business development opportunities identified in the very fluid regulatory and structural environment.
› Russian business continues to build market position and client numbers. The fraud litigation there continues and risk management remains a high priority.
› Servizio Titoli acquisition completed and integration well advanced. Initial financial performance in advance of expectations.
› German AGM business looking more promising than a very quiet FY11.
› VEM depends on market activity and so is quiet (but profitable). It will benefit from any upturn in market activity and from the opening up of cross-border service opportunities.
› The Danish meeting and plans business is tracking as expected and is a valuable component in building more integrated Continental European offerings.
› New management structure in Sweden well received by clients.
CEO’sReport
45
Asia Update
› The HK IPO pipeline is still strong but retail demand remains very subdued.
› Planning for dematerialisation of the HK equities market continues.
› China plans and proxy businesses continue to grow profitably, and we have launched an AGM administration business with very encouraging first year results.
› India quiet, and IPO pricing fiercely competitive. Indian JV has acquired the major stake in a small registry business in Bahrain.
CEO’sReport
46
Australia & New Zealand Update
› Scott Cameron (formerly Asia-Pac regional CFO) has taken over from Mark Davis as regional head. (Mark is jointly heading the BNY Mellon shareowner services business integration project.)
› Corporate action levels down significantly.
› Winning a good share of what work there is – eg, Treasury Wines spin-off from Fosters.
› Good Communication Services client wins in late 2011 should positively impact 2012.
› Plans business grew and performed very well in a difficult market. The second year of tax reporting ran smoothly.
CEO’sReport
Computershare Limited
Full Year Results 2011 Presentation
Stuart CrosbyPeter Barker
10 August 2011
48
Appendix:
Full Year Results 2011 Presentation
10 August 2011
49
Group Comparisons
Appendix 1: Group Comparisons
50
CPU Revenues
43%
11%
16%
6%
10%
11%
3%
Register Maintenance
Corporate Actions
Business Services
Stakeholder Relationship M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
FinancialResults
51
FY 2011 RevenueRegional Analysis
FinancialResults
14
5.6
47
.5
3.4 6.1
19
.3
13
1.4
12
.0
51
.4
34
.7
30
.8
3.7
4.3
0.0
0.8
10
4.7
22
.7
66
.8
11
.0
85
.9
4.3 8.6
49
.8
4.0
1.9 1
2.6
1.2
17
.6
5.3
26
2.2
45
.6
91
.2
60
.5
31
.4
15
.5
18
.3
84
.8
25
.1
71
.9
3.1
15
.6
3.5
2.3
0.0
50.0
100.0
150.0
200.0
250.0
300.0
Register Maintenance
Corporate Actions
Business Services
Stakeholder Relationship
M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
US
$ m
illi
on
Australia & NZ Asia UCIA Continental Europe USA Canada
52
RevenueHalf Year Comparisons
FinancialResults
33
9.8
14
0.8
76
.0
56
.6
54
.1
83
.5
32
.3
30
8.2
11
4.1
10
0.9
71
.1
44
.3 63
.2
27
.0
31
7.3
11
2.2 1
39
.8
81
.6
49
.6
78
.1
28
.8
34
2.9
71
.0
13
6.5
81
.9
70
.1 80
.9
28
.8
33
0.8
96
.8
13
1.2
39
.5
74
.0 84
.7
24
.1
36
7.7
82
.7
13
4.9
57
.6
83
.6
87
.5
23
.6
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Register Maintenance
Corporate Actions Business Services Stakeholder Relationship
M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
US
$ m
illi
on
1H09 2H09 1H10 2H10 1H11 2H11
53
Effective Tax Rate - Statutory & Management FinancialResults
28.5%
26.4%
27.5%
26.6%27.0%
28.4%
26.3%
28.3%27.8%
25.6%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
FY07 FY08 FY09 FY10 FY11
Ta
x R
ate
%
Statutory Management
54
Country Summaries
Appendix 2: Country Summaries
55
Australia Half Year Comparison
FinancialResults
221.5
168.5
217.3
165.2
192.6
167.4
0.0
50.0
100.0
150.0
200.0
250.0
1H09 2H09 1H10 2H10 1H11 2H11
AU
$ m
illio
n
Total Revenue
74
.9
32
.8
3.5 5
.5
9.5
84
.0
11
.2
57
.1
26
.0
2.8
2.0
8.2
68
.7
4.1
73
.5
45
.8
3.6
2.7
9.1
73
.1
9.4
54
.4
19
.3
4.2
1.4
8.9
70
.9
6.2
80
.0
21
.5
1.8 3.2
9.6
72
.4
4.1
59
.9
24
.2
1.5 3
.1
10
.0
61
.6
7.0
-2.0
8.0
18.0
28.0
38.0
48.0
58.0
68.0
78.0
88.0
98.0
Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment
Employee Share Plans Communication Services
Tech & Other Revenue
AU
$ m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
56
New Zealand Half Year Comparison
FinancialResults
8.1
7.5
8.3
7.4 7.57.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
1H09 2H09 1H10 2H10 1H11 2H11
NZ
$ m
illio
n
Total Revenue 6.4
1.7
6.1
1.4
5.8
2.3
0.1
5.6
1.8
0.1
5.5
2.0
0.1
5.7
1.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Register Maintenance Corporate Actions Business Services
NZ
$ m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
57
Hong Kong Half Year Comparison
FinancialResults
195.9 192.4
297.0
210.3
327.6
234.1
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1H09 2H09 1H10 2H10 1H11 2H11
HK
$ m
illio
n
Total Revenue
17
7.6
17
.1
1.2
0.0
17
6.8
14
.8
0.8
0.0
15
5.1
13
5.3
1.0 5
.6
0.0
15
1.5
52
.2
2.3 4.2
0.0
14
7.9
17
2.0
0.6
7.1
0.0
15
3.8
62
.4
0.4 3.0
14
.5
0.0
50.0
100.0
150.0
200.0
250.0
Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment
Employee Share Plans
HK
$ m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
58
India Half Year Comparison
FinancialResults
836.1 834.4
1,134.2
1,060.11,101.7 1,074.4
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1H09 2H09 1H10 2H10 1H11 2H11
IN
R m
illio
n
Total Revenue
276.
9
20.8
538.
4
317.
4
14.3
502.
7
301.
6
61.0
771.
6
235.
3
26.5
798.
4
278.
7
135.
2
687.
8
290.
5
69.8
714.
2
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
Register Maintenance Corporate Actions Business Services
INR
mill
ion
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
59
United States Half Year Comparison
In 2H10 USD 13.4M of Business Services revenue was incorrectly reported as Corporate Actions. This has been corrected and the correct 2H10 Business Services revenue of USD 48.1M and Corporate Actions revenue of USD 21.3M is reflected here.
FinancialResults
231.7
277.1297.1
312.2
258.3 266.4
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1H09 2H09 1H10 2H10 1H11 2H11
US
$m
illio
n
Total Revenue
12
2.8
33
.2
8.0
32
.7
19
.1
3.9
12
.1
12
8.0
30
.2
31
.1
53
.8
16
.0
6.1
11
.9
11
7.4
21
.3
58
.3
65
.8
17
.5
5.3
11
.6
13
8.8
21
.3
48
.1
65
.4
17
.8
9.1 1
1.6
12
6.4
22
.3
51
.4
22
.7
16
.5
6.5
12
.4
13
5.8
23
.3
39
.8
37
.8
14
.9
9.0
5.7
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Register Maintenance
Corporate Actions Business Services Stakeholder Relationship
M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
US$
mil
lio
n
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
60
Canada Half Year Comparison
FinancialResults
104.1102.6
94.3
109.5
97.7
109.0
85.0
90.0
95.0
100.0
105.0
110.0
115.0
1H09 2H09 1H10 2H10 1H11 2H11
CA
$ m
illio
n
Total Revenue
41
.8
17
.4
32
.8
2.6
7.2
1.5
0.7
45
.1
14
.5
31
.5
2.1
7.1
1.4
1.1
38
.3
12
.6
32
.0
1.3
7.2
1.8
1.0
45
.9
14
.0
36
.1
1.6
8.0
1.7 2.1
37
.0
13
.0
36
.3
1.5
7.2
1.7
1.1
48
.3
12
.2
36
.1
1.6
8.5
1.9
0.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Register Maintenance
Corporate Actions Business Services Stakeholder Relationship
M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
CA
$ m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
61
United Kingdom & Channel IslandsHalf Year Comparison
FinancialResults
86.596.4
67.4
77.773.5
82.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
1H09 2H09 1H10 2H10 1H11 2H11
GB
P m
illio
n
Total Revenue
26
.4
32
.0
11
.9
2.7
10
.4
1.0
2.1
24
.7
33
.4
20
.8
1.8
10
.3
1.3
4.0
24
.3
9.6
19
.6
1.8
9.0
1.0
2.1
26
.1
3.5
20
.6
2.2
21
.4
1.3
2.6
20
.2
7.1
17
.2
1.7
24
.2
1.1 1
.9
19
.9
5.8
23
.2
2.6
27
.0
1.5 1
.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment
Employee Share Plans Communication Services Tech & Other Revenue
GB
P m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
62
Ireland Half Year Comparison
FinancialResults
4.94.5 4.5
5.5 5.4
4.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1H09 2H09 1H10 2H10 1H11 2H11
EU
R m
illio
n
Total Revenue
3.7
0.5
0.1
4.3
0.2
0.1
3.4
0.3
0.7
0.1
3.3
1.3
0.8
0.1
3.5
1.1
0.8
0.1
3.3
0.0
1.0
0.1
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Register Maintenance Corporate Actions Employee Share Plans Tech & Other Revenue
EU
R m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
63
Germany Half Year Comparison
In Germany AGM revenue has in prior halves been recognised in Corporate Actions. To be consistent with the rest of CPU Group, we have in 2H11 reclassified this to Register Maintenance (from Corporate Actions). All prior period comparatives have been restated.
FinancialResults
19.0
26.3
16.3
22.9
16.8
24.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1H09 2H09 1H10 2H10 1H11 2H11
EU
R m
illio
n
Total Revenue
3.8
0.3
0.0
7.4
0.6
5.2
1.8
10
.5
0.0
0.0
6.8
0.3
5.2
3.43
.7
1.4
0.0
5.2
0.5
4.5
1.0
10
.4
1.4
0.0
4.8
0.2
3.6
2.4
2.2
1.7
0.0
5.5
0.2
6.0
1.3
10
.9
1.2
0.3
3.0
0.2
7.0
1.7
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
Register Maintenance
Corporate Actions Business Services Stakeholder Relationship
M'ment
Employee Share Plans
Communication Services
Tech & Other Revenue
EUR
mil
lio
n
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
64
South Africa Half Year Comparison
FinancialResults
136.1
123.4 123.5
125.7
127.7
132.6
116.0
118.0
120.0
122.0
124.0
126.0
128.0
130.0
132.0
134.0
136.0
138.0
1H09 2H09 1H10 2H10 1H11 2H11
ZA
R m
illio
n
Total Revenue
11
2.8
21
.2
1.9
10
7.0
10
.8
5.7
11
1.5
9.1
2.3
0.7
11
3.5
9.4
2.4
0.5
10
9.9
6.3
3.3
0.4
7.8
11
8.4
2.5
2.4
0.3
9.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment
Employee Share Plans
ZAR
mil
lio
n
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
65
Russia Half Year Comparison
FinancialResults
284.5
103.0135.3
182.1
312.1
402.1
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
1H09 2H09 1H10 2H10 1H11 2H11
RU
B m
illio
n
Total Revenue
24
7.7
36
.8
10
2.8
0.3
12
9.2
6.2
17
5.3
6.8
29
3.2
17
.7
1.2
37
1.3
26
.8
4.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Register Maintenance Business Services Stakeholder Relationship M'ment
RU
B m
illi
on
Revenue Breakdown
1H09 2H09 1H10 2H10 1H11 2H11
66
Assumptions
Appendix 3: Assumptions FinancialResults
67
Assumptions: Exchange Rates
Average exchange rates used to translate profit and loss to US dollars
USD 1.00000
AUD 1.0196
HKD 7.7763
NZD 1.3270
INR 45.3567
CAD 1.0061
GBP 0.6311
EUR 0.7379
ZAR 7.0344
RUB 29.7754
AED 3.6742
DKK 5.5007
SEK 6.7278
FinancialResults