Computershare Limited Full Year Results 2008 Presentation Stuart - PowerPoint PPT Presentation

Computershare Limited Full Year Results 2008 Presentation Stuart Crosby Tom Honan 1 3 August 2 0 0 8

CEO’s Report Financial Results I ntroduction 2

Introduction President & CEO Stuart Crosby 3

Introduction Results Highlights › Management EPS of 51.61 cents, up 41% › Management Net Profit After OEI of $290.4m, up 32% › Operating cash flows of $347.3m, up 8% › Total Operating Revenues of $1,582.5m, up 12% › Operating Costs of $1,106.0m, up 5% › Final Dividend of 11 cents* (AUD) per share, up 22% › Dividend franking – 30% franked Note: all results are in USD except for dividend; all comparisons with FY07 *30% franked 4

Introduction Computershare Strengths › Strong and sustained earnings and cashflow growth › More than 70% of Revenue recurring in nature › Diversified across business lines and globally – across 17 countries including growth engines China, India and Russia › 1 st or 2 nd in all registry markets we service › Demonstrated ability to acquire and integrate businesses › Proven technology capabilities and innovation › Long term client relationships › Only global provider, offering our clients and their investors unique cross-border transaction services 5

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 balance sheet management. Looking to FY09 and having regard to current equity, foreign exchange and interest rate market conditions, we expect Management EPS to be approximately 10% higher than FY08. 6

CEO’s Report Financial Results I ntroduction 7

Financial Results Tom Honan CFO 8

Group Financial Performance – US$m Financial Results Variance FY08 FY07 Sales Revenue 1,564.0 1,404.2 11% Interest & Other Income 18.6 14.2 31% Total Revenue 1,582.5 1,418.4 12% Operating Costs 1,106.0 1,050.9 (5% ) Share of Net (Profit)/Loss of Associates (2.7) (3.0) Management EBI TDA 479.2 370.5 29% Management Adjustments - Revenue/(Expense) (7.3) 16.1 Reported EBI TDA 471.9 386.6 22% Management EPS 51.61 36.68 41% 9

FY08 NPAT Analysis Financial Results $USm 350 33.9 6.9 1 EBITDA - AP 10.4 300 2 EBITDA - EMEA 19.4 1.1 39.5 3 EBITDA - NA 250 35.4 4 Depn & Amort 290.4 5 Interest 200 219.4 6 Tax 7 OEI 150 FY07 NPAT 1 2 3 4 5 6 7 FY08 NPAT 10

Financial Results FY08 FY07 Rolling 12 months FY06 Management EPS Performance FY05 FY04 FY03 US cents 60 50 40 30 20 10 0 11

Analysis of Management EPS – Financial Results Half Year Comparison US cents 30.00 25.00 20.00 15.00 10.00 5.00 0.00 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 6.60 9.52 8.82 13.92 17.86 18.83 27.36 24.26 12

Net Operating Cash Flows Financial Results $USm Operating Cash Flow Vs. Capital Expenditure 347.3 350 321.0 300 250 183.6 200 150 109.8 100 42.8 50 25.7 25.0 23.7 0 FY05 FY06 FY07 FY08 Operating Cash Flows Capital Expenditure 13

Free Cash Flow Financial Results $USm Operating Cash Flows less Capital Expenditure 350 304.5 295.3 Free Cash Flow: 300 - 3 year CAGR 52% - 5 year CAGR 54% 250 200 158.6 150 86.1 100 50 0 FY05 FY06 FY07 FY08 14

Full Year Comparisons – Revenue & EBI TDA Financial Results $USm $USm 1 800 600.0 479.2 1 600 500.0 1 400 R E 370.5 e B 1 200 400.0 v I e T 1 000 n D 240.1 u 300.0 A e 800 600 200.0 400 1 00.0 200 1 21 4.7 1 41 8.4 1 582.5 0 0.0 FY06 FY07 FY08 Total Revenue M anagement EBITDA 15

Half Year Comparisons – Revenue & EBI TDA Financial Results 1st Half $USm $USm $USm 2nd Half $USm 800 300 800 300 257.4 700 700 250 250 221 .8 600 600 1 88.7 200 200 1 81 .7 500 500 1 40.4 400 150 400 150 99.7 300 300 100 100 200 200 50 50 100 100 588.1 694.0 788.2 794.3 724.4 626.7 0 0 0 0 1H06 1H07 1H08 2H06 2H07 2H08 Revenue Management EBITDA Revenue Management EBITDA 16

Management EBI TDA Margin Financial Results 35.0% 30.3% 30.0% 26.1% 25.0% 19.6% 20.0% 19.8% 15.0% 10.0% FY05 FY06 FY07 FY08 17

Revenue Breakdown – US$m Financial Results FY08 FY07 Variance Regist er Maint enance 817.6 725.9 13% Corporat e Act ions 303.6 252.5 20% Fund Services 91.3 116.1 (21% ) St akeholder Relat ionship Mgt 89.0 86.9 2% Employee Share Plans 119.0 117.1 2% Communicat ion Services 105.3 75.7 39% Technology & Ot her Revenues 56.8 44.2 29% Tot al Revenue 1,582.5 1,418.4 12% Note: Included in the revenue results are $217.5m of Margin Income (FY07: $173.7m) and $255.8m of Recoverable Income (FY07: $263.8m). 18

Margin I ncome analysis Financial Results US$m 250 217.5 200 173.7 150 117.5 100 50 0 FY06 FY07 FY08 Average Interest rates: UK 4.52% 5.04% 5.45% US 4.18% 5.25% 3.76% Canada 3.28% 4.25% 3.98% Australia 5.54% 6.25% 6.82% Average balances (US$bn) * 6.4 6.7 8.7 * Note: some balances attract no interest or a set margin for Computershare 19

Financial Results North America 26% 23% Regional Analysis – FY08 Revenue & EBI TDA EBITDA Breakdown EMEA Asia Pacific 51% North America 28% Total Revenue Breakdown 24% EMEA Asia Pacific 48% 20

Full Year Comparisons – Operating Costs Financial Results $USm 1200 1100 1000 284.4 278.6 900 277.7 800 700 600 500 821.4 400 772.3 700.2 300 200 100 0 FY06 FY07 FY08 Operating Costs excl. COS Cost of Sales (COS) 21

Technology Costs – Focused on Revenue & Cost I nitiatives Financial Results % US$m 175.0 12.0% 150.0 9.6% 9.4% 10.1% 125.0 8.0% 100.0 75.0 132.0 115.5 157.2 4.0% 50.0 25.0 0.0 0.0% FY06 FY07 FY08 Total Technology costs Technology costs as a % of sales revenue 22

Analysis of FY08 Technology Costs Financial Results 4% 26% 42% Total Costs US$157.2m Development Costs US$64.8m 28% Development Infrastructure Maintenance Administration 23

Analysis of Technology Costs Financial Results $USm 160 6.5 140 41.3 6.5 120 3.7 41.6 100 50.0 44.6 80 40.6 60 21.4 40 64.8 43.3 40.5 20 0 FY06 FY07 FY08 Development Infrastructure Maintenance Admin 24

Balance Sheet as at 30 June 2008 Financial Results Variance Jun-08 Jun-07 US$'000s US$'000s Current Assets 516,129 368,891 40% Non Current Assets 1,721,889 1,366,224 26% Total Assets 2,238,018 1,735,115 29% Current Liabilities 436,911 338,551 (29% ) Non Current Liabilities 1,030,911 563,990 (83% ) Total Liabilities 1,467,823 902,541 (63% ) Total Equity* 770,195 832,574 (7% ) * After buy-back of US$297.5m. 25

Key Financial Ratios Financial Results EBI TDA interest coverage Net Financial I ndebtedness to EBI TDA times times 14 3.0 12.1 11.9 2.48 11.5 12 2.5 10 8.7 2.0 1.68 1.64 8 1.5 6 0.94 1.0 4 0.5 2 0 0.0 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 26

Computershare Borrowings Financial Results Variance Jun-08 Jun-07 US$m US$m Cash 124.2 86.8 43% I nterest Bearing Liabilities * 910.9 435.1 (109% ) Net Debt 786.7 348.3 (126% ) Management EBITDA 479.2 370.5 29% Net debt to Management EBITDA 1.64 0.94 (75% ) * Average Tenor of drawn debt at 30 June 2008 was 3.2 years. 27

Debt Facility Maturity Profile Financial Results US$m FY09 $200.0m FY10 Nil 700.0 600.0 FY11 $600.0m 600.0 FY12 $123.0m 500.0 FY13 Nil FY14 Nil 400.0 FY15 $124.5m 300.0 235.0 FY16 Nil 200.0 200.0 FY17 $21.0m 123.0 124.5 FY18 Nil 100.0 21.0 FY19 235.0m 0.0 Total $1,303.5m FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Includes the US Private Placement (USPP) transaction for $235m completed on 29 th July 2008, maturing July 2018. 28

Capital Expenditure Financial Results $USm Capital Expenditure Vs. Depreciation 45.0 3.2 40.0 35.0 12.7 30.0 1.7 Depreciation 1.3 25.0 4.1 6.0 4.4 20.0 4.5 15.0 5.1 10.0 22.7 15.0 5.0 12.6 0.0 FY06 FY07 FY08 Information Technology Communication Services Facilities Occupancy Other 29

Working Capital Management Financial Results Days Sales Outstanding Days 50 45 44 43 45 40 35 30 25 20 15 10 5 0 FY06 FY07 FY08 30

Return On I nvested Capital Vs. WACC Financial Results I ncreased returns, lower Cost of Capital AGAAP AI FRS 20% 18% 16% 14% 12% 10% 8% 6% FY03 FY04 FY05 FY06 FY07 FY08 WACC ROIC 31

Financial Results FY08 FY07 AI FRS FY06 ROE FY05 FY04 Return on Equity AGAAP FY03 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 32

Equity Management – Final Dividend of 11 cps (AU) Financial Results › EPS – Basic US 50.12 cents › EPS – Management US 51.61 cents › Final Dividend (30 % franked) AU 11 cents › Current Yield* 2.1% * Based on 12 month dividend and share price of A$9.99 (close 12 February 2008) 33

Equity Management – Ordinary Share Buy-back Financial Results › Acquired 45,000,000 ordinary shares › Average price AUD $9.91 › Commenced Dec-06, completed Oct-07 34