Computershare Limited Full Year Results 2007 Presentation Stuart - PowerPoint PPT Presentation

Computershare Limited Full Year Results 2007 Presentation Stuart Crosby Tom Honan 1 5 August 2 0 0 7

CEO’s Report Financial Results I ntroduction 2

Introduction President & CEO Stuart Crosby 3

Introduction Results Highlights › Management EPS of 36.68 cents, up 61% › Management Net Profit After OEI of $219.4m, up 62% › Free cash flows of $295.3m, up 86% › Total Operating Revenues of $1,418.4m, up 17% › Operating Costs of $1,050.9m, a 7% increase › Management EBI TDA margin up from 20% to 26% › Total Dividend 17 cents (AUD) per share, up 31% Note: all results are in USD except for dividend; all comparisons with FY06 4

Introduction A Strong Result From a Broad Base › Continued strong performance across all major business lines and regions › Standouts: HK, UK, Canada, Aus, US (ie, just about everywhere!) › Revenue growth a factor but margin growth just as important › Cost growth 7% vs. revenue growth 17% takes Management EBI TDA margin from 20% to 26% › No material impact from recent market volatility expected 5

Introduction Global Equities Market Completed M & A Volume Annual M & A Book to Bill Ratio Source: SDC Thomson Financial and UBS Securities Australia Ltd 6

Introduction Global I nterest Rate Market % % UK US 8 8 6 6 4 4 2 2 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007 % Canada 8 6 4 2 0 2000 2001 2002 2003 2004 2005 2006 2007 7

Introduction Computershare Strengths › More than 70% of Revenue recurring in nature › Global Diversification – across 17 countries including growth engines China, I ndia and Russia › Exposure to global interest rates › Proven technology capabilities and innovation › Demonstrated ability to acquire and integrate businesses › Strong and sustained earnings and cashflow growth › Unique cross-border transaction capacities 8

Outlook Introduction Long-term growth in Management EPS of 20% per year remains the target, to be achieved by a combination of organic growth and acquisitions, as well as continued balance-sheet management. Looking to FY08 and having regard to current equity and interest rate market conditions, we expect Management EPS to be more than 15% higher than FY07. 9

Introduction Ordinary Share buy-back › I ncrease total buy-back program to 45 million ordinary shares, leaving 31,582,023 ordinary shares still to be purchased. › Buy-back period extended to 31 st January 2008. 10

CEO’s Report Financial Results I ntroduction 11

Financial Results Tom Honan CFO 12

Group Financial Performance – US$m Financial Results Variance FY07 FY06 Sales Revenue 1,404.2 1,198.3 17% Interest & Other Incom e 14.2 16.4 (13% ) Total Revenue 1,418.4 1,214.7 17% Operating Costs 1,050.9 977.8 (7% ) Share of Net (Profit)/Loss of Associates (3.0) (3.2) Management EBI TDA 370.5 240.1 54% Managem ent Adjustm ents - Revenue/(Expense) 16.2 (1.8) Reported EBI TDA 386.6 238.3 62% Management EPS 36.68 22.74 61% 13

Drivers behind financial performance Financial Results • Corporate action environment • Interest rate levels • Higher balances • New clients • Acquisitions • Divestment of underperforming business • Cost control • Operating efficiency • Balance sheet improvements • Acquisition synergies • Foreign exchange 14

Financial Results FY07 FY06 AI FRS Management EPS Performance FY05 FY04 AGAAP FY03 US cents 40 35 30 25 20 15 10 5 0 15

EPS Growth FY05 to FY10 Financial Results Management EPS US cents 50 40 30 20 10 0 FY05 FY06 FY07 FY08 FY09 FY10 EPS projected from FY05 at 20% p.a. Actual / Forecast EPS growth 16

Analysis of Management EPS – Financial Results Half Year Comparison 20.00 18.00 16.00 14.00 12.00 US cents 10.00 8.00 6.00 4.00 2.00 0.00 1H05 2H05 1H06 2H06 1H07 2H07 6.60 9.52 8.82 13.92 17.86 18.83 17

FY07 NPAT Analysis Financial Results $USm 300 1.6 250 42.3 3.5 65.5 1 EBITDA - AP 2.3 200 2 EBITDA - EMEA 39.8 3 EBITDA - NA 4 150 25.1 Depn & Amort 5 Interest 6 100 Tax 219.4 135.5 7 OEI 50 0 FY06 NPAT 1 2 3 4 5 6 7 FY07 NPAT 18

Net Operating Cash Flows Financial Results $USm Operating Cash Flow Vs. Capital Expenditure 321.0 330 300 270 240 210 183.6 180 150 109.8 120 90 60 25.0 25.7 23.7 30 0 FY05 FY06 FY07 Operating C ash Flow s C apital Ex penditure 19

Free Cash Flow – up 86% on FY06 Financial Results $USm Operating Cash Flows less Capital Expenditure 295.3 300 250 200 158.6 150 86.2 100 50 0 FY05 FY06 FY07 20

Cash Flows Financial Results $USm 330 321.0 Free Cash Flow 4 year CAGR 71% 300 295.3 270 240 210 183.6 180 158.6 150 109.8 120 96.3 90 86.2 46.2 81.5 60 30 34.3 0 FY03 FY04 FY05 FY06 FY07 Operating C ash Flow s Free C ash Flow s 21

Full Year Comparisons – Revenue & EBI TDA Financial Results $USm $USm 1 600 400.0 370.5 1 400 350.0 1 200 300.0 R E e B 240.1 1 000 250.0 v I e T n D 800 200.0 158.5 u A e 600 1 50.0 400 1 00.0 200 50.0 1418.4 810.4 1214.7 0 0.0 FY05 FY06 FY07 Total Revenue M anagement EBITDA 22

Half Year Comparisons – Revenue & EBI TDA Financial Results 1st Half $U Sm $USm 2nd Half $U Sm $USm 800 200 800 200 1 88.7 1 81 .7 180 180 700 700 160 160 600 1 40.4 600 140 140 500 500 120 120 99.7 93.1 400 100 400 100 724.4 694.0 80 80 626.7 65.4 300 300 588.1 60 60 455.9 200 200 354.5 40 40 100 100 20 20 0 0 0 0 2H05 2H06 2H07 1H05 1H06 1H07 Revenue Management EBITDA Rev enue M anagement EBITDA 23

Management EBI TDA Margin Financial Results 28.0% 26.1% 26.0% 24.0% 22.0% 20.5% 19.8% 19.6% 20.0% 18.6% 18.0% 16.0% 14.0% 12.0% 10.0% FY03 FY04 FY05 FY06 FY07 24

Revenue Breakdown – US$m Financial Results FY0 7 FY0 6 Variance Regist er Maint enance 725.9 639.6 13% Corporat e Act ions 252.5 171.8 47% Fund Services 116.1 110.5 5% St akeholder Relat ionship Mgt 86.9 90.3 (4% ) Employee Share Plans 117.1 95.8 22% Communicat ion Services 75.7 63.2 20% Technology & Ot her Revenues 44.2 43.5 2% Tot al Revenue 1 ,4 1 8 .4 1 ,2 1 4 .7 1 7 % Note: Included in the revenue results are $173.7m of Margin Income (FY06: $117.5m) and $263.8m of Recoverable Income (FY06: $245.6m). 25

Financial Results North America 23% 20% Regional Analysis – FY07 Revenue & EBI TDA EBITDA Breakdown EMEA Asia Pacific 57% 22% North America Total Revenue Breakdown 23% EMEA Asia Pacific 55% 26

Financial Results Full Year Comparisons – Operating Costs 1,050.9 FY07 977.8 FY06 FY05 653.4 $USm 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 27

Technology Costs – Establishing Global Platform Financial Results % US$m 140.0 15.0% 132.0 130.0 115.5 120.0 110.0 10% 10% 9% 10.0% 100.0 90.0 79.8 80.0 70.0 5.0% 60.0 50.0 40.0 30.0 0.0% FY05 FY06 FY07 Total Technology costs Technology costs as a % of sales revenue 28

Analysis of FY07 Technology Costs Financial Results 5% 33% 31% Total Costs US$132.0m Development Costs US$43.3m 31% Developm ent Infrastructure M aintenance Adm inistration 29

Balance Sheet as at 30 June 2007 Financial Results Variance Jun-07 Jun-06 US$'000s US$'000s Current Assets 368,891 338,475 9% Non Current Assets 1,366,224 1,264,318 8% Total Assets 1,735,115 1,602,793 8% Current Liabilities 338,551 265,620 (27% ) Non Current Liabilities 563,989 637,305 12% Total Liabilities 902,541 902,925 0% Total Equity* 832,574 699,868 19% * After buy-back of US$80.2m and dividends of US$70.3m 30

Key Financial Ratios Financial Results AGAAP AIFRS AGAAP AIFRS EBI TDA interest coverage Net Financial I ndebtedness to EBI TDA times times 3.0 25 2.48 21.1 2.5 20 2.0 1.68 15 12.1 11.9 1.5 1.21 8.7 0.94 10 1.0 5 0.5 0.0 0 FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07 AGAAP AIFRS AGAAP AIFRS Funds Flow to Total Debt % Gearing (Net Debt / Net Debt + 76% 80% Equity) % 57% 50% 60% 41% 37% 40% 43% 29% 40% 27% 30% 27% 20% 20% 10% 0% 0% FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07 31

Computershare Borrowings Financial Results Variance Jun-07 Jun-06 US$m US$m Cash 86.8 72.8 19% I nterest Bearing Liabilities * 435.1 476.5 9% Net Debt 348.3 403.7 14% Management EBITDA 370.5 240.1 54% Net debt to Management EBITDA 0.94 1.68 44% * Average Tenor of drawn debt is 4.6 years 32

Capital Expenditure Financial Results $USm Capital Expenditure Vs. Depreciation 30.0 1.7 1.3 25.0 2.0 6.0 4.4 20.0 4.3 Depreciation 4.5 5.1 15.0 4.8 10.0 15.1 12.6 12.6 5.0 0.0 FY05 FY06 FY07 Information Technology Communication Services Facilities Occupancy Other 33

Working Capital Management Financial Results Days Sales Outstanding Days 70 63 60 50 45 43 40 30 20 10 0 FY05 FY06 FY07 Note: historical DSO restated to exclude deferred revenue 34