COMMENCING 1H FY20 January 2020 1 New business stream reporting - - PowerPoint PPT Presentation

commencing 1h fy20
SMART_READER_LITE
LIVE PREVIEW

COMMENCING 1H FY20 January 2020 1 New business stream reporting - - PowerPoint PPT Presentation

NEW BUSINESS STREAM REPORTING COMMENCING 1H FY20 January 2020 1 New business stream reporting Commencing 1H FY20 Aligning financial reporting to the new global business streams Commencing with the upcoming 1H FY20 results to be


slide-1
SLIDE 1

1

NEW BUSINESS STREAM REPORTING – COMMENCING 1H FY20

January 2020

slide-2
SLIDE 2

2

New business stream reporting – Commencing 1H FY20

Aligning financial reporting to the new global business streams

› Commencing with the upcoming 1H FY20 results to be released on February 12th, Computershare will move to a new financial reporting structure › This new reporting structure aligns with how the business is now managed and structured › This presentation is designed to help investors understand these changes. The presentation does not contain a Trading Update or comment on guidance › The reporting changes only impact business streams’ results. Overall group results are unchanged: Management revenue, EBITDA, EPS, ROE and free cash flow etc remain the same › The level and detail of financial disclosure will also remain the same › Numbers expressed are at Actual rates throughout this presentation unless otherwise stated. Refer to slide 16 for average exchange rates

slide-3
SLIDE 3

3

Explaining the new business streams

› Issuer Services

Register Maintenance, Corporate Actions and Stakeholder Relationship Management now form Issuer Services. We have also added our Corporate Governance software products business that provides entity management and board portals solutions, this was previously in Corp, Tech and Other

› Mortgage Services

Mortgage Services is now a stand alone business stream. It includes US and UK Mortgage Services and our Property Rental Service business including the Deposit Protection Scheme

› Business Services

Will now be made up of Bankruptcy, Class Actions, Corporate Trust (including Bonds previously classified as Register Maintenance) and for historical purposes Karvy Funds (disposed in FY19)

› Employee Share Plans

Voucher Services, previously in Business Services, is now in Employee Share Plans

› Communication Services

Will now include Utilities (previously Business Services)

› Corporate and Technology

Corporate and Technology includes shared service functions including Risk, Internal Audit, Global Information Security and Corporate. Throughout the presentation, Other includes income previously classified as Tech & Other and expenses associated with performance incentives

slide-4
SLIDE 4

4

Issuer Services

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Register Maintenance 339.6 160.2 711.2 315.0 Corporate Actions 91.7 164.3 Stakeholder Relationship Management 35.5 5.2 67.3 10.6 Total (per previous reporting) 466.8 165.4 942.8 325.6 Inclusions Add Governance Services 8.5 0.5 16.5 0.9 Add Other 1.5

  • 1.8

3.3

  • 6.3

Removals Less Bonds/Successor Trustee and Escrow

  • 5.0
  • 3.1
  • 10.7
  • 6.6

Issuer Services 471.8 161.0 951.9 313.6

.

slide-5
SLIDE 5

5

Business Services

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Business Services (per previous reporting) 443.9 118.5 927.4 249.7 Inclusions Add Bonds/Successor Trustee and Escrow 5.0 3.1 10.7 6.6 Add Other 0.6 1.2 0.9

  • 0.6

Removals Less Mortgage Services

  • 286.3
  • 59.3
  • 614.7
  • 135.1

Less Property Rental Services

  • 14.9
  • 7.6
  • 30.2
  • 15.8

Less Vouchers

  • 9.9
  • 6.9
  • 18.7
  • 12.9

Less Utilities

  • 4.3

0.5

  • 8.7

0.7 Business Services 134.1 49.5 266.7 92.6

slide-6
SLIDE 6

6

Employee Share Plans & Voucher Services

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Employee Share Plans (per previous reporting) 116.6 22.1 288.5 69.2 Inclusions Add Vouchers 9.9 6.9 18.7 12.9 Add Other 0.1 0.5

  • 1.7

Employee Share Plans & Voucher Services 126.6 29.0 307.7 80.3

slide-7
SLIDE 7

7

Communication Services & Utilities

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Communication Services (per previous reporting) 83.2 14.5 168.9 39.9 Inclusions Add Utilities 4.3

  • 0.5

8.7

  • 0.7

Add Other 0.1

  • 0.1

0.2

  • 1.3

Communication Services & Utilities 87.6 13.9 177.8 37.9

slide-8
SLIDE 8

8

Mortgage Services & Property Rental Services

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Mortgage Services (per previous reporting) 286.3 59.3 614.7 135.1 Inclusions Add Property Rental Services 14.9 7.6 30.2 15.8 Add Other 1.2

  • 0.1

1.2

  • 0.7

Mortgage Services & Property Rental Services 302.4 66.8 646.1 150.2

slide-9
SLIDE 9

9

Corporate & Technology

USD M 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA Corporate & Technology (per previous reporting) 17.3 10.9 28.9

  • 9.5

Removals Less Governance Services

  • 8.5
  • 0.5
  • 16.5
  • 0.9

Less Other Issuer Services

  • 1.5

1.8

  • 3.3

6.3 Less Other Business Services

  • 0.6
  • 1.2
  • 0.9

0.6 Less Other Employee Share Plans & Voucher Services

  • 0.1
  • 0.5

1.8 Less Other Communication Services & Utilities

  • 0.1

0.1

  • 0.2

1.3 Less Other Mortgage Services & Property Rental Services

  • 1.2

0.1

  • 1.2

0.7 Corporate & Technology 5.4 11.2 6.3 0.2 Computershare allocates out all corporate expenses to the business lines. The residual Corporate and Technology revenues reflect some third party technology revenues, rental income, interest income and other corporate related transaction income. The movement in EBITDA between 1H and 2H reflects movement in provisions.

slide-10
SLIDE 10

10

Management Revenue by Business Stream (NEW)

Restatement of prior year disclosure

FY19 1H19 FY19 @ CC 1H19 @ CC FY18 1H18 Issuer Services 951.9 471.8 972.1 479.3 977.4 479.5 Mortgage Services & Property Rental Services 646.1 302.4 657.2 304.6 584.3 276.3 Employee Share Plans & Voucher Services 307.7 126.6 315.8 128.6 249.4 116.8 Business Services 266.7 134.1 272.5 137.3 291.0 155.3 Communication Services & Utilities 177.8 87.6 187.2 91.2 191.3 96.2 Corporate & Technology 6.3 5.4 6.6 5.5 7.4 3.8 Total Group 2,356.5 1,127.8 2,411.4 1,146.5 2,300.9 1,127.8

CC = Numbers translated at the 1H18 and FY18 average exchange rates

slide-11
SLIDE 11

11

Management EBITDA by Business Stream (NEW)

Restatement of prior year disclosure

FY19 1H19 FY19 @ CC 1H19 @ CC FY18 1H18 Issuer Services 313.6 161.0 318.6 162.8 293.9 140.8 Mortgage Services & Property Rental Services 150.2 66.8 152.3 67.3 133.0 59.9 Employee Share Plans & Voucher Services 80.3 29.0 81.2 28.9 65.5 27.2 Business Services 92.6 49.5 95.5 51.1 93.4 46.5 Communication Services & Utilities 37.9 13.9 39.3 14.5 36.6 12.8 Corporate & Technology 0.2 11.2

  • 1.0

10.8 0.2 6.1 Total Group 674.9 331.4 685.9 335.4 622.6 293.4

CC = Numbers translated at the 1H18 and FY18 average exchange rates

slide-12
SLIDE 12

12

APPENDIX

slide-13
SLIDE 13

13

Summary

Previous Business Stream Reporting 1H19 Revenue 1H19 EBITDA FY19 Revenue FY19 EBITDA New Business Stream Reporting 1H19 Revenue 1H19 EBITDA* FY19 Revenue FY19 EBITDA* Register Maintenance 339.6

160.2 711.2 315.0 Corporate Actions 91.7 164.3 Stakeholder Relationship Management 35.5 5.2 67.3 10.6 Total 466.8 165.4 942.8 325.6 Issuer Services 471.8 161.0 951.9 313.6 Employee Share Plans 116.6 22.1 288.5 69.2 Vouchers 9.9 6.9 18.7 12.9 Employee Share Plans & Voucher Services 126.5 29.0 307.2 82.1 Employee Share Plans & Voucher Services 126.6 29.0 307.7 80.3 Business Services 443.9 118.5 927.4 249.7 Business Services 134.1 49.5 266.7 92.6 Mortgage Services & Property Rental Services 302.4 66.8 646.1 150.2 Communication Services 83.2 14.5 168.9 39.9 Communication Services & Utilities 87.6 13.9 177.8 37.9 Corporate & Technology 17.3 10.9 28.9

  • 9.5

Corporate & Technology 5.4 11.2 6.3 0.2 Total Group 1,127.8 331.4 2,356.5 674.9 Total Group 1,127.8 331.4 2,356.5 674.9 * Under new reporting, EBITDA has been adjusted to reflect the distribution of performance incentives by business stream (previously allocated in Corporate & Technology)

slide-14
SLIDE 14

14

Margin Income by Business Stream (NEW)

Restatement of prior year disclosure

FY19 1H19 FY19 @ CC 1H19 @ CC FY18 1H18 Issuer Services 112.4 61.1 113.8 61.6 80.0 35.0 Mortgage Services & Property Rental Services 58.2 26.4 59.3 26.6 36.7 15.6 Employee Share Plans & Voucher Services 15.9 7.1 16.4 7.2 16.9 7.1 Business Services 60.0 30.7 61.3 31.2 45.8 21.8 Communication Services & Utilities

  • Corporate & Technology
  • Total Group

246.5 125.2 250.7 126.6 179.5 79.6

CC = Numbers translated at the 1H18 and FY18 average exchange rates

slide-15
SLIDE 15

15

Management EBITDA ex Margin Income by Business Stream (NEW)

Restatement of prior year disclosure

FY19 1H19 FY19 @ CC 1H19 @ CC FY18 1H18 Issuer Services 201.2 99.9 204.8 101.2 213.9 105.8 Mortgage Services & Property Rental Services 92.0 40.4 93.0 40.7 96.3 44.3 Employee Share Plans & Voucher Services 64.4 21.9 64.8 21.7 48.6 20.1 Business Services 32.6 18.8 34.2 19.9 47.6 24.7 Communication Services & Utilities 37.9 13.9 39.3 14.5 36.6 12.8 Corporate & Technology 0.2 11.2

  • 1.0

10.8 0.2 6.1 Total Group 428.4 206.2 435.2 208.8 443.1 213.8

CC = Numbers translated at the 1H18 and FY18 average exchange rates

slide-16
SLIDE 16

16

Exchange rates

Currency FY19 1H19 FY18 1H18 USD 1.0000 1.0000 1.0000 1.0000 AUD 1.3933 1.3734 1.2890 1.2863 HKD 7.8371 7.8371 7.8219 7.8095 NZD 1.4893 1.4893 1.3977 1.3969 INR 70.6855 70.6855 64.9732 64.6323 CAD 1.3117 1.3117 1.2716 1.2709 GBP 0.7707 0.7707 0.7427 0.7588 EUR 0.8645 0.8645 0.8396 0.8533 RAND 14.0136 14.0136 12.7589 13.3921 RUB 65.5333 65.1752 58.7412 58.7208 AED 3.6729 3.6729 3.6728 3.6729 DKK 6.5256 6.4466 6.2495 6.3485 SEK 9.1332 8.9924 8.3012 8.2364 CHF 0.9937 0.9870 0.9689 0.9734

slide-17
SLIDE 17

17

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 investment advice or a recommendation to acquire Computershare’s shares
  • r other securities. It has been prepared without taking into account the objectives, financial situation or needs of a particular investor or a potential investor. Before making an investment decision, a

prospective investor should consider the appropriateness of this information having regard to his or her own objectives, financial situation and needs and seek specialist professional advice. Financial data

  • Management results are used, along with other measures, to assess operating business performance. The company believes that exclusion of certain items permits better analysis of the Group’s

performance on a comparative basis and provides a better measure of underlying operating performance.

  • Management adjustments are made on the same basis as in prior years.
  • The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards.
  • All amounts are in United States dollars, unless otherwise stated.

Past performance

  • Computershare’s past performance, including past share price performance and financial information given in this announcement is given for illustrative purposes only and does not give an indication or

guarantee of future performance. Future performance and forward-looking statements

  • This announcement may contain forward-looking statements regarding Computershare’s intent, belief or current expectations with respect to Computershare’s business and operations, market conditions,

results of operations and financial condition, specific provisions and risk management practices.

  • When used in this announcement, the words ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘should’, ‘could’, ‘objectives’, ‘outlook’, ‘guidance’ and similar expressions, are

intended to identify forward-looking statements. Indications of, and guidance on, plans, strategies, management objectives, sales, future earnings and financial performance are also forward-looking statements.

  • Forward-looking statements are provided as a general guide only and should not be relied upon as a guarantee of future performance. They involve known and unknown risks, uncertainties, contingencies,

assumptions and other important factors that are outside the control of Computershare.

  • Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumptions on which these statements are based.

Computershare makes no representation or undertaking that it will update or revise such statements. Disclaimer

  • No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the

maximum extent permitted by law, none of Computershare or its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence. Not intended for foreign recipients

  • No part of this announcement is intended for recipients outside Australia. Accordingly, recipients represent and warrant that they are able to receive this announcement without contravention of any

applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business.

slide-18
SLIDE 18

1

NEW BUSINESS STREAM REPORTING – COMMENCING 1H FY20 COUNTRY SLIDES

January 2020

slide-19
SLIDE 19

2

1H18 Management revenue at actual FX rates

65.0 0.0 8.2 0.0 58.4 2.3 42.0 0.0 10.6 22.9 0.0 0.0 49.3 132.9 45.1 0.0 2.7

  • 0.1

14.7 0.0 12.8 0.0 12.7 0.1 273.4 143.4 29.6 78.8 18.4 1.3 35.1 0.0 10.6 53.6 4.1 0.1

  • 50

50 100 150 200 250 300 350 400 450 Issuer Services Mortgage Services & Property Rental Services Employee Share Plans & Voucher Services Business Services Communication Services & Utilities Corporate & Technology USD millions ANZ Asia UCIA CEU USA Canada

slide-20
SLIDE 20

3

1H19 Management revenue at actual FX rates

63.4 0.0 8.1 0.0 48.1 3.8 40.2 0.0 12.4 16.9 0.0 52.0 142.9 54.5 7.8 2.9 0.6 16.1 0.0 11.9 0.0 13.4 0.0 262.6 159.4 28.9 60.4 19.4 0.9 37.5 0.0 10.7 48.9 3.7 0.1 50 100 150 200 250 300 350 400 450 Issuer Services Mortgage Services & Property Rental Services Employee Share Plans & Voucher Services Business Services Communication Services & Utilities Corporate & Technology USD millions ANZ Asia UCIA CEU USA Canada

slide-21
SLIDE 21

4

FY18 Management revenue at actual FX rates

118.1 0.0 15.1 0.0 110.8 3.5 82.8 0.0 23.9 47.6 0.0 0.0 104.6 278.2 99.0 1.1 6.4 0.8 52.6 0.0 25.3 0.0 28.5 0.1 539.4 306.1 65.1 136.4 38.4 2.6 79.9 0.0 21.1 105.9 7.3 0.4 100 200 300 400 500 600 700 800 Issuer Services Mortgage Services & Property Rental Services Employee Share Plans & Voucher Services Business Services Communication Services & Utilities Corporate & Technology USD millions ANZ Asia UCIA CEU USA Canada

slide-22
SLIDE 22

5

FY19 Management revenue at actual FX rates

107.2 0.0 14.4 0.0 94.6 4.2 73.0 0.0 29.1 17.0 0.0 0.0 104.2 285.4 162.4 18.4 6.5 4.1 52.9 0.0 21.0 0.0 29.7 0.1 531.3 360.7 60.3 143.7 40.1 0.9 80.1 0.0 20.5 87.5 6.9 0.1 100 200 300 400 500 600 700 800 Issuer Services Mortgage Services & Property Rental Services Employee Share Plans & Voucher Services Business Services Communication Services & Utilities Corporate & Technology USD millions ANZ Asia UCIA CEU USA Canada

slide-23
SLIDE 23

6

Australia

Management revenue: AUD million

76.3 10.6 75.1 3.0 80.2 11.1 66.1 5.3 138.4 19.4 142.8 4.5 136.8 20.1 131.7 5.9 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Issuer Services Plans & Vouchers CCS & Utilities Corporate & Technology 1H18 1H19 FY18 FY19

1H18 1H19 FY18 FY19 165.0 162.7 305.2 294.5

slide-24
SLIDE 24

7

Hong Kong

Management revenue: HKD million

1H18 1H19 FY18 FY19 344.6 357.9 716.2 742.4

266.0 78.6 0.1 264.6 93.5

  • 0.1

535.2 181.0 0.1 521.2 221.0 0.2

  • 100.0

0.0 100.0 200.0 300.0 400.0 500.0 600.0 Issuer Services Plans & Vouchers Corporate & Technology 1H18 1H19 FY18 FY19

slide-25
SLIDE 25

8

India

Management revenue: INR million

1H18 1H19 FY18 FY19 1,937.0 1,608.6 3,924.4 1,608.6

487.0 1,450.0 437.7 1,170.9 885.8 3,038.6 437.7 1,170.9 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 3,000.0 3,500.0 Issuer Services Business Services 1H18 1H19 FY18 FY19

slide-26
SLIDE 26

9

USA

Management revenue: USD million

1H18 1H19 FY18 FY19 544.9 531.7 1,087.9 1,137.2

273.4 143.4 29.6 78.8 18.4 1.3 262.6 159.4 28.9 60.4 19.4 0.9 539.4 306.1 65.1 136.4 38.4 2.6 531.3 360.7 60.3 143.7 40.1 0.9 0.0 100.0 200.0 300.0 400.0 500.0 600.0 Issuer Services Mortgage Services & Property Rental Services Plans & Vouchers Business Services CCS & Utilities Corporate & Technology 1H18 1H19 FY18 FY19

slide-27
SLIDE 27

10

Canada

Management revenue: CAD million

1H18 1H19 FY18 FY19 131.6 132.3 272.8 258.7

44.6 13.4 68.2 5.2 0.2 49.2 14.0 64.2 4.8 0.1 101.6 26.8 134.6 9.3 0.6 106.2 27.2 116.0 9.1 0.2 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 Issuer Services Plans & Vouchers Business Services CCS & Utilities Corporate & Technology 1H18 1H19 FY18 FY19

slide-28
SLIDE 28

11

UK, Channel Islands and Equatex

Management revenue: GBP million

1H18 1H19 FY18 FY19 160.8 187.8 335.0 420.6

25.3 100.8 32.7 0.0 2.0

  • 0.1

28.5 110.2 40.5 6.0 2.3 0.4 51.8 206.6 70.4 0.8 4.7 0.5 56.1 220.2 122.0 14.2 5.0 3.1

  • 50.0

0.0 50.0 100.0 150.0 200.0 250.0 Issuer Services Mortgage Services & Property Rental Services Plans & Vouchers Business Services CCS & Utilities Corporate & Technology 1H18 1H19 FY18 FY19 Equatex 1H19: 9.4m FY19: 52.3m Mortgage Services 1H18: 92.6m 1H19: 98.7m FY18: 189.3 FY19: 196.9

slide-29
SLIDE 29

12

South Africa

Management revenue: RAND million

1H18 1H19 FY18 FY19 134.3 137.9 272.9 282.0

125.0 9.0 0.3 130.2 7.4 0.2 255.3 16.7 0.9 267.0 14.5 0.5 0.0 50.0 100.0 150.0 200.0 250.0 300.0 Issuer Services Plans & Vouchers Corporate & Technology 1H18 1H19 FY18 FY19

slide-30
SLIDE 30

13

Germany

Management revenue: EUR million

1H18 1H19 FY18 FY19 15.4 16.9 42.8 45.9

2.3 2.2 10.8 0.1 2.8 2.5 11.6 0.1 14.8 4.0 23.9 0.1 15.9 3.9 26.0 0.1 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Issuer Services Plans & Vouchers CCS & Utilities Corporate & Technology 1H18 1H19 FY18 FY19

slide-31
SLIDE 31

14

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 investment advice or a recommendation to acquire Computershare’s shares
  • r other securities. It has been prepared without taking into account the objectives, financial situation or needs of a particular investor or a potential investor. Before making an investment decision, a

prospective investor should consider the appropriateness of this information having regard to his or her own objectives, financial situation and needs and seek specialist professional advice. Financial data

  • Management results are used, along with other measures, to assess operating business performance. The company believes that exclusion of certain items permits better analysis of the Group’s

performance on a comparative basis and provides a better measure of underlying operating performance.

  • Management adjustments are made on the same basis as in prior years.
  • The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards.
  • All amounts are in United States dollars, unless otherwise stated.

Past performance

  • Computershare’s past performance, including past share price performance and financial information given in this announcement is given for illustrative purposes only and does not give an indication or

guarantee of future performance. Future performance and forward-looking statements

  • This announcement may contain forward-looking statements regarding Computershare’s intent, belief or current expectations with respect to Computershare’s business and operations, market conditions,

results of operations and financial condition, specific provisions and risk management practices.

  • When used in this announcement, the words ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘should’, ‘could’, ‘objectives’, ‘outlook’, ‘guidance’ and similar expressions, are

intended to identify forward-looking statements. Indications of, and guidance on, plans, strategies, management objectives, sales, future earnings and financial performance are also forward-looking statements.

  • Forward-looking statements are provided as a general guide only and should not be relied upon as a guarantee of future performance. They involve known and unknown risks, uncertainties, contingencies,

assumptions and other important factors that are outside the control of Computershare.

  • Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumptions on which these statements are based.

Computershare makes no representation or undertaking that it will update or revise such statements. Disclaimer

  • No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the

maximum extent permitted by law, none of Computershare or its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence. Not intended for foreign recipients

  • No part of this announcement is intended for recipients outside Australia. Accordingly, recipients represent and warrant that they are able to receive this announcement without contravention of any

applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business.