Computershare Limited Full Year Results 2009 Presentation Stuart - - PowerPoint PPT Presentation

Computershare Limited Full Year Results 2009 Presentation

Stuart Crosby Peter Barker Peter Barker 12 August 2009

I ntroduction Financial Results CEO’s Report Results

2

Introduction

S C b Stuart Crosby President & CEO

3

Introduction

Results Highlights

Management Adjusted Results Management Adjusted Results

FY09 FY08

FY09 versus FY08

FY09 at FY08 exchange

FY09 at FY08 rates versus FY08

exchange rates

rates versus FY08 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% Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA)

$475.5m $479.2m

Down 1% $536.5m Up 12% and Amortisation (EBITDA) EBITDA margin

31.5% 30.3%

+ 120 bps 32.0% + 170 bps Net Profit after OEI

$289.5m $290.4m

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% Free Cash Flow

$318.6m $304.5m

Up 5% Capital Expenditure

$22.9m $42.8m

Down 46% N D b EBITDA i

1 67 i 1 64 i

0 03 i Net Debt to EBITDA ratio

1.67 times 1.64 times

+ 0.03 times Final Dividend

AU11 cents AU11 cents

Flat Dividend franking amount

50% 30%

Up by 20% 4

Note: all results are in USD except for dividend

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

I ntroduction Financial CEO’s Report Results p

7

Financial Results

k Peter Barker 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

Financial Results

Group Financial Performance – US$m

Variance FY09 FY08 Variance 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

Half Year Comparison

Financial Results

US cents

Half Year Comparison

25 30 20 10 15 5 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 16 12 22 74 36 68 51 61 52 11

11

FY 16.12 22.74 36.68 51.61 52.11

Financial Results

FY09 Management NPAT Analysis

1

EBITDA - EMEA

$USm 380 400

2

OEI

3

Depn & Amort 65.5 3.0 1.9 5.7 7.9

360 380

p

4

Interest 26.7

320 340

5

Tax

6

EBITDA - AP 290.4 42.5 289.5

280 300

7

EBITDA - NA

260 FY08 NPAT 1 2 3 4 5 6 7 FY09 NPAT

12

Financial Results

Free Cash Flows

Operating cash flow vs capital e pendit e

240

$USm

capital expenditure

183.5 206.2 159.9 181.6

180 210

117.8 137.5 141.1

120 150

36.7 73.1 65.8 18 8 24 0

30 60 90

11.8 11.9 14.6 10.4 7.8 17.9 18.8 24.0 12.6 10.3

30 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Operating Cash Flows Capital Expenditure 13 p g p p

Financial Results

Revenue & EBI TDA

Half Year Comparisons Half Year Comparisons

694.0 724.4 788.2 794.3 783.0 728.7 300 800 EBITDA $USm Revenue $USm 456.0 588.1 626.7 694.0 188.7 257.4 221.8 238.6 236.9 200 250 500 600 700 354.5 93.1 99.7 140.4 181.7 100 150 300 400 65.4 50 100 200 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09

Revenue Management EBI TDA

14

Financial Results

Management EBI TDA Margin

Half Year Comparison Half Year Comparison

32.7% 30.5% 32.5% 35%

EBITDA margin

22 4% 27.2% 27.9% 25% 30% 18.5% 20.4% 22.4% 25.1% 20% 17.0% 15% 10% 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09

15

Financial Results

Revenue Breakdown – US$m

FY09 FY08 Variance FY09 t o FY08

Register Maintenance

736.2 817.6 (10% )

Corporate Actions

313.4 303.6 3%

Fund Services

83.9 91.3 (8% ) ( )

Stakeholder Relationship Mgt

73.9 89.0 (17% )

Employee Share Plans

98.4 119.0 (17% )

Communication Services

146 6 105 3 39%

Communication Services

146.6 105.3 39%

Technology & Other Revenue

59.3 56.8 4%

Tot al Revenue 1 511 6 1 582 5

(4% )

Tot al Revenue 1,511.6 1,582.5

(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 will include comparatives) (effective 1H FY10 – will include comparatives)

Regional Reporting

Current Structure Going Forward

North America Asia Pacific USA 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)

17

* * Fund Services now incorporated in Stakeholder Relationship Management

Financial Results

Margin I ncome Analysis

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)* 6 4 6 4 6 4 7 0 8 7 8 7 7 2 6 4 18

* Note: some balances attract no interest or a set margin for Computershare

(US$bn) 6.4 6.4 6.4 7.0 8.7 8.7 7.2 6.4

Financial Results

FY09 Revenue & EBI TDA

Regional Analysis Regional Analysis

Total Revenue EBI TDA Total Revenue breakdown EBI TDA breakdown

26%

17% 43%

46%

40% 43%

28%

Asia Pacific EMEA North America Asia Pacific EMEA North America

19

Financial Results

Operating Costs

Half Year Comparisons

$USm

Half Year Comparisons

137 4 500 600

$

144.5 133.2 138.9 139.7 137.0 147.4 137.4 141.2 400

345.0 355.2 367.4 404.9 395.4 426.2 406.7 350.6

200 300 100 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 l f l ( )

20

Operating Costs excl. COS Cost of Sales (COS)

Financial Results

Technology Costs

Continued I nvestment to Maintain Strategic Advantage Continued I nvestment to Maintain Strategic Advantage

$USm

6.5 6.7 9.6% 9.4% 10.1% 10.3% 10.0% 160 180

$USm

41.6 41.3 38.2 3.6 6.5 6.0% 8.0% 100 120 140 21.4 40.6 44.6 45.3 50.0 4.0% 60 80 100 40.5 43.3 64.8 63.6 0.0% 2.0% 20 40 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 Development Infrastructure Maintenance Admin Technology costs as a % of sales revenue

21

Financial Results

Balance Sheet as at 30 June 2009

Variance Jun-09 Jun-08

US$'000s US$'000s

Jun-09 to Jun-08

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 it 901 168 770 196

17%

Total Equity 901,168 770,196

17%

22

Financial Results

Key Financial Ratios

EBI TDA I nterest Coverage Net Financial I ndebtedness to EBI TDA

12.1 8.7 11.9 11.5 13.3 10 12 14 times

EBI TDA I nterest Coverage

2.48 2.5 3.0 times

2 4 6 8

1.68 0.94 1.64 1.67 0.5 1.0 1.5 2.0

FY05 FY06 FY07 FY08 FY09

0.0 FY05 FY06 FY07 FY08 FY09 US$m US$m Jun-09 to Jun-08 Cash 180.4 124.2 45% Interest Bearing Liabilities * 974.3 910.9 7% Net Debt 793 9 786 7 1% Net Debt 793.9 786.7 1% Management EBITDA 475.5 479.2 (1% ) Net Debt to Management EBITDA 1.67 1.64 2% 23

* Average Tenor of drawn debt at 30 June 2009 was 4.2 years.

Debt Facility Maturity Profile

Financial Results Maturity Dates Debt Drawn Committed Debt Facilities Bank Debt F ilit Private Placement F ilit

700 US$m Facility Facility FY10 FY11 Oct-10 390.6m 550.0m 550.0m Mar-11 50.0m 50.0m 50.0m FY12 Mar-12 123.0m 123.0m 123.0m FY13 FY14 440 6 600.0 500 600 700 FY15 Mar-15 124.5m 124.5m 124.5m FY16 FY17 Mar-17 21.0m 21.0m 21.0m FY18 FY19 Jul-18 235.0m 235.0m 235.0m Total $944.1m* $1,103.5m $550.0m $553.5m 440.6 235.0 235.0 300 400 123.0 124.5 21.0 123.0 124.5 21.0 100 200 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Debt drawn Committed debt facility

24

$200M bank club facility, expiring Oct-09, cancelled by CPU 30-Jun-09

Financial Results

Capital Expenditure

Capital Expenditure Vs. Depreciation

$USm $USm 2.6 25 2.5 3.0 7 9 4.8 0.8 0.6 0.6 15 20 4.1 2.2 1.6 1.9 1.2 2.2 3.8 7.9 3.0 0.7 0.5 1.1 0.5 0.2 10 7.6 5.0 12.1 8.8 13.9 7.2 8.2 0.9 2.3 1.9 3.8 1.4 5 2.9 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Information Technology Communication Services Facilities Occupancy Other Depreciation

25

Financial Results

Working Capital Management

Days sales outstanding

45 50

Days

y g

45 43 44 40 35 40 45 25 30 10 15 20 5 FY06 FY07 FY08 FY09

26

Financial Results

Return On I nvested Capital Vs. WACC and Return on Equity Return on Equity

40.20% 36 10% 42% 26 40% 36.10% 30% 36% 17.62% 19.64% 17.98% 19.40% 26.40% 8 24% 10.24% 10.34% 10.20% 10.57% 12.19% 12% 18% 6% FY06 FY07 FY08 FY09 WACC ROIC ROE 27

Equity Management – Final Dividend

• f 11 cps (AU)
• f 11 cps (AU)

EPS – Basic US 46.02 cents EPS M t US 52 11 t EPS – Management US 52.11 cents I nterim Dividend (40% franked) AU 11 cents I nterim Dividend (40% franked) AU 11 cents Final Dividend (50% franked) AU 11 cents Current Yield* 2.2%

* Based on 12 month dividend and share price of A$10.13 (close 10 August 2009)

28

Financial Results

Financial Summary – Final Remarks

› Record management EPS achieved in a ‘once-in-a-generation’ difficult g g economic environment › Solid revenues, disciplined expense, cost and capital expenditure management have driven solid margins and generation of free cash flow have driven solid margins and generation of free cash flow › Maintained strong balance sheet › Return on equity > 35% › Final dividend maintained at AU 11 cents per share, franking lifted to 50%

29

Market Financial CEO’s Report Overview Results CEO s Report

30

CEO’s Report

CEO Presentation

Stuart Crosby President & CEO

31

Group Strategy and Priorities

CEO’s Report

› 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 › 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 are committing priority resources in two areas: › Continuing to lift our market position › Engaging with a range of proposals and projects around the globe that › Engaging with a range of proposals and projects around the globe that look to change the legal and/or operational structure of securities

• wnership and of communications between issuers and investors (we refer

to these matters as “market structure”) to these matters as market structure )

32

Delivery Against Strategy

CEO’s Report

› Delivering on the first two limbs of the strategy (cost and revenue) remains a g gy ( ) key factor in protecting our profits and margins in these tough times: › Operational productivity continues to improve across the globe › Pay off from revenue initiatives mitigates the declines that we would › Pay-off from revenue initiatives mitigates the declines that we would

• therwise be seeing

› Our position at the top of independent service surveys supports client t ti d i i retention and pricing › Non-cyclical and counter-cyclical acquisitions during the year also protect our profits and margin across the business cycle › Our strong balance sheet and robust cashflows allow us to look at any

• pportunities that emerge

33

Priority - Lifting our Market Position

› We continue to enhance the quality of our operational and client directed q y p processes › We continue to release a range of new and enhanced products across the full range of our businesses range of our businesses › Third party shareholder and issuer satisfaction surveys, as well as our own market research, continue to show that the market is recognising our edge in quality and product innovation quality and product innovation › We expect our differentiation from our competitors to increase - the differentiation should be even clearer as some competitors work to address funding concerns and others prepare for the exit of private equity and other funding concerns, and others prepare for the exit of private equity and other non-strategic owners

34

Priority - Market Structure Projects

› A range of market structure projects are underway around the world › Some are driven by brokers’ and custodians’ desire for back-office efficiencies

• in these cases, the interests of our clients (issuers of securities) are often at

risk, as back office efficiency comes at significant cost to transparency and i i b i d i communication between issuers and investors › Others are driven by issuers responding to increasing investor power and activism by seeking better visibility of who owns their securities and better ways to communicate with them › Examples include the ECB’s Target 2 Securities project and the “proxy plumbing” enquiries of the US SEC - similar exercises are underway in Canada, Russia, Hong q y , , g Kong and the UK › We are actively engaged in all cases, and in all cases: › Our global experience gives us a unique and widely valued perspective and › Our global experience gives us a unique and widely-valued perspective, and we are active and influential participants in the debate › We work to deliver our clients better transparency of their ownership and ff ti i ti h l ith th i i t

35

more effective communication channels with their investors

Other Key Points at a Group Level

› We accept that volatile foreign exchange markets will continue to bring noise p g g g to our reported results; we will continue to focus on local business profitability › Operating margins continue to hold up › Corporate actions revenue has also held up but it remains lumpy › Corporate actions revenue has also held up - but it remains lumpy › Non-cyclical and counter-cyclical businesses – Deposit Protection Scheme and Vouchers in the UK, bankruptcy and class action administration in the US, t t t i C d d i l i ti i b i corporate trust in Canada and commercial communication services businesses everywhere – also help protect us from the immediate financial markets cycles

36

North America Update

United States

CEO’s Report

United States

›

I nvestor Services

› Client retention remains strong off the back of strong service, but client insolvency having some impact › Revenues also hit by dividend reductions / cessation and by record low › Revenues also hit by dividend reductions / cessation, and by record low transaction volumes and IPO activity › Strong cost management has more than covered falls in transactional fees, b t i i f ll h d t ff t but margin income falls harder to offset ›

Other

› Fund services ramping up for some major projects p g p j p j › Plans also hurt by collapse in transaction volumes › Georgeson achieving good market share in “fights”; restructuring AGM service to meet rule 452 repeal opportunities service to meet rule 452 repeal opportunities › Bankruptcy admin – moving Administar into KCC and expanding infrastructure to take advantage of very buoyant market

37

CEO’s Report

North America Update

Canada Canada

›

I nvestor Services

› Client retention strong but insolvency biting › Working on a range of industry efficiency initiatives

C T

›

Corporate Trust

› Strong business development and growth in a tough environment › Low interest rates drag against that growth Low interest rates drag against that growth › Looking to take some products (eg, escrow administration) to other markets – have already written escrow business in Aust and UK

Othe

›

Other

› Plans - holding up well › Georgeson – hit by lower M&A levels but still market leader g y › CCS – good growth in value-added work (commercial and non-registry)

38

EMEA Update

UK Russia Germany I reland & South Africa

CEO’s Report

UK, Russia, Germany, I reland & South Africa

›

UK

› Investor Services had a great FY09 – FY10 more challenging after large client losses through nationalisation, takeover, etc › More registry client acquisition opportunities as competitors struggle to › More registry client acquisition opportunities as competitors struggle to maintain service standards in the tough environment › Deposit Protection Scheme and Vouchers going very well Pl lli d i i l b l l ti t l lti ti l › Plans selling award winning global solutions to large multinationals ›

Germany

› VEM stabilised and focused on integration across the CPU group g g p ›

Russia, I reland and South Africa

› Russian market heavily impacted by GFC › Ireland and South Africa tracking well in a difficult environment

39

CEO’s Report

Asia Pacific Update

Asia Asia

›

Hong Kong and China g g

› Hong Kong IPO pipeline strong and starting to flow (hopefully) › Established as a credible provider of proxy services to PRC issuers (where no market for proxy services had previously existed) no market for proxy services had previously existed) › Plans offering for foreign listed PRC issuers continues to attract clients ›

I ndia

› IPO market and mutual fund valuations bouncing back ›

Japan

IR and p o sales th o gh JSS (JV ith MUTB) pe fo ming c editabl in a › IR and proxy sales through JSS (JV with MUTB) performing creditably in a difficult environment › Continue to engage positively with MUTB on broader opportunities

40

Asia Pacific Update

Australia and New Zealand

CEO’s Report

Australia and New Zealand

›

I nvestor Services

› Very strong major client retention › Strong corporate action flows have offset lower activities in other areas I lf i l l i i › Investor self-service levels continue to increase › Brought a wide range of new products to market (eg, custodian portal, a range of on-line voting tools for investors and issuers) › NZ – some capital raising activity, but otherwise subdued ›

Other

CCS c ts in disc etiona spend h ting comme cial e en es › CCS – cuts in discretionary spend hurting commercial revenues › CPM – proposed budget changes would have hurt most plans, and CPU played a strong role in addressing the threat › Georgeson – remain the market leader › Fund Services – integrated offering continues to attract clients

41

Computershare Limited Full Year Results 2009 Presentation

Stuart Crosby Peter Barker Peter Barker 12 August 2009

Appendix: Full Year Results 2009 Presentation 12 August 2009

43

Appendix 1: Group Comparisons

Group Comparisons

44

Financial Results

Behind the Headline – NPAT I MPACT

Net profit after tax at 30 June 2009 255,733

Redundancy provisions 12 689

US$000’s

Redundancy provisions 12,689 Restructuring provisions 2,524 VEM asset write-downs 12,573 , Profits on sales of controlled entities and business units (6,872) Marked to market adjustments - derivatives 940 Intangible asset amortisation 11,946

Management adjusted profit after tax at 30 June 2009 289 533 Management adjusted profit after tax at 30 June 2009 289,533

45

Financial Results

CPU Revenues

4%

Revenue Type

6% 10% Register Maintenance Corporate Actions 49% 5% 5% Fund Services Stakeholder Relationship Management 21% Employee Share Plans Communication Services 21% Technology & Other Revenue

46

Financial Results

FY09 Revenue

Regional Analysis

$USm

Regional Analysis

386.2

400 450 $USm 250 300 350

166.0 115 7 184.1 133.0127.5

150 200 250

`

52.9 25.4 5.7 15.7 115.7 13.1 4.8 31.4 35.1 18.3 19.0 53.7 36.9 47.6 12.6 26.9

50 100

5.7 4.8

Register Maintenance Corporate Actions Fund Services Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue Asia Pacific EMEA North America 47 Asia Pacific EMEA North America

Financial Results

Revenue

Full Year Comparisons

$USm

Full Year Comparisons

9.7 725.9 817.6 736.2

700 800 900

$

639

500 600 700

171.8 0.5 252.5 6.1 7.1 303.6 9 .3 313.4 146.6

200 300 400

110 90.3 95.8 63.2 43.5 116 86.9 117 75.7 44.2 91.3 89 119 105. 56.8 83.9 73.9 98.4 1 59.2

100 Register Corporate Actions Funds Services Stakeholder Employee Share Communication Technology & Other Register Maintenance Corporate Actions Funds Services Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue FY06 FY07 FY08 FY09

48

Financial Results

Operating Costs

Full Year Comparisons

$USm

Full Year Comparisons

431.1 459.4 501.6 475.2 450 500 550 77.7 4 8.6 84.4 78.6 350 400 27 27 3 28 56.4 27 53.5 200 250 300 56.2 69.5 113.7 29.7 64.5 77.2 131.3 39.9 63.9 66.1 1 33.5 61.5 44.6 15 2.5 50 100 150 2 22 50 Cost of Sales Personnel Occupancy Other Direct Technology Corporate FY06 FY07 FY08 FY09

49

Financial Results

Revenue

Half Year Comparisons Half Year Comparisons

1 375.8 406.5 411.1 386.0 1 400 450 $USm 350.1 3 350.1 300 350 119.7 132.8 169.4 134.2 155.2 159.7 150 200 250 74.2 34.2 58.2 37.2 20.4 41.8 52.7 58.9 38.5 23.8 41.7 39.9 59.0 44.4 27.3 49.6 49.1 60.0 60.9 29.5 36.2 35.9 54.1 83.5 32.0 46.2 38.1 44.2 63.2 27.2 50 100 Register Maintenance Corporate Actions Funds Services Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09

50

Financial Results

Operating Costs

Half Year Comparisons

$USm

Half Year Comparisons

8 240.5 239.7 261.9 251.5 3.7 250 300 218.8 5 223 200 138.9 139.7 137.0 147.5 137.4 141.2 150 28.9 41.9 61.3 5 35.6 35.3 70.1 .4 30.5 27.4 76.7 .9 33.4 38.6 79.7 31.7 3.4 82.2 9 29.8 .2 71.3 50 100 16.5 23 2 20 12.6 23 17.9 2 21 4.6 Cost of Sales Personnel Occupancy Other Direct Technology Corporate

51

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Underlying Effective Tax Rate

Tax rate 30 0 35.0 % 23.9 28.5 26.4 27.5 25.0 30.0 19.4 15.0 20.0 5.0 10.0 0.0 FY05 FY06 FY07 FY08 FY09

52

Hedge Lifecycles

Financial Results

Hedging of Long Term Sustainable Balances

100%

Hedging of Long Term Sustainable Balances

80% 40% 60% 20% 0% Jul-09 Jul-10 Jul-11 Jul-12 Total Hedging

53

Total Hedging

I nterest Rate Sensitivity

Financial Results

80 US$m PBT Impact 40 60 20

• 20
• 3.00%
• 2.50%
• 2.00%
• 1.50%
• 1.00%
• 0.50%

Current 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%

• 60
• 40

Exposure Hedged exposure

This graph outlines the sensitivity of interest rate changes when measured against core client balances (long term sustainable balances) adjusted by the impact of floating rate debt corporate

• 80

Exposure Hedged exposure

54

balances (long term sustainable balances), adjusted by the impact of floating rate debt, corporate cash balances and derivative positions.

I nterest Rate Hedging

Risk Management

Financial Results

Risk Management

I nterest Rate Hedging

Strategy:

• Protect downside risk in current interest rate

environment Policy:

• Minimum hedge of 25% / Maximum hedge of 100%
• Minimum term 1 year / Maximum term 5 years
• Current hedging of balances exposed to interest

rates: 52%

55

Risk Management – Average Funds Balances for year ending 30 June 2009

Financial Results

for year ending 30 June 2009

By Category By Country

Sharesave/ Employee Plans 8% Dividend 16% Australia 5% US 22% Broker Trust 18% Dissenter 3% C d Regular Trust 21% Corporate Actions 34% Canada 49% UK 24%

Average funds balance US$6.8b

21%

56

Financial Results

Appendix 2: Country Summaries

Country Summaries

57

Financial Results

Appendix 2: Country Summaries

Asia Pacific

58

Financial Results

Australia

Half Year Comparison Half Year Comparison

76.7 74.9 84.0

80 90

$Am

Revenue Breakdown

221.5 250

$Am

Total Revenue

66.8 63.2 63.4 4 57.1 68.7

60 70

173.6 152.9 168.5 200 8.1 28.7 35.7 35.0 2 47.4 34.0 .5

40 50

143.2 136.5 100 150 24.7 9 8.6 28 7.2 21.0 .6 8.2 2 6.8 6.9 8.7 7.8 25.2 7.5 5 9.5 11.2 26. 8.2

10 20 30

50 3.0 4.9 7 3.0 5. 6 2.8 6 2.6 2.9 3.8 2.3 5. 1.9 2.0 4.1

10

Register Maintenance Corporate Actions Fund Services Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09

59 1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Hong Kong

Half Year Comparison

$HKm

Total Revenue

$HKm

Revenue Breakdown

Half Year Comparison

441.1 400 450 500 300.3 300 350 300 350 400 200 250 227.1 235.4 212.2 195.9 192.4 200 250 123.4 126.0 109 4 140.7 161.4 177.6 176.8 150 200 100 150 103.5 109.4 50.8 50 100 50 1H07 2H07 1H08 2H08 1H09 2H09 18.3 15.6 Register Maintenance Corporate Actions

60

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

I ndia

Half Year Comparison

2.3 INRm

Revenue Breakdown

Half Year Comparison

1,060.0 1200 INRm

Total Revenue

622 538.4 502.7 550 600 650 812.2 836.1 834.4 800 1000 8 381.2 .4 400 450 500 582.2 533.2 600 287.0 261.8 216.3 270.6 309.8 257.9 9.8 276.9 317. 250 300 350 200 400 .4 46.3 121.2 179 8 100 150 200 1H07 2H07 1H08 2H08 1H09 2H09 33 4 20.8 14.3 50 Register Maintenance Corporate Actions Fund Services 1H07 2H07 1H08 2H08 1H09 2H09

61

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

New Zealand

Half Year Comparison

$NZm

Revenue Breakdown

10 $NZm

Total Revenue

Half Year Comparison

7.0 8

8.6 8.1 8.4 8.1 7.5

8 5.9 6.3 6.4 6.4 6.1 6

6.9 7.5

6 4 4 1.6 1.8 2.0 1.7 1.4 2 2 1.0 Register Maintenance Corporate Actions 1H07 2H07 1H08 2H08 1H09 2H09

62

Register Maintenance Corporate Actions 1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Appendix 2: Country Summaries

North America

63

Financial Results

United States

Half Year Comparison

$USm

Revenue Breakdown

299.4 296 7 $USm

Total Revenue

Half Year Comparison

157.2 9.4

200 299.4 296.7 263.2 280.9 231.7 277.1 250 300

133.7 136.7 149 125.7 128.1

150 231.7 200

66.2 61.2

100 100 150

45.5 12.7 27.9 9 45.4 33.1 21.6 25.9 7 44.4 28.8 13.7 24.9 11.6 42.6 30.5 21.3 20.6 1.3 38.4 20.8 11.8 19.1 12.1 32.9 20.9 16.0 11.9

50 50 100

1 3.5 9. 3.7 9. 3.1 1 5.2 1 1 3.9 1 6.1 1

Register Main Corp Actions Fund Services Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09 1H07 2H07 1H08 2H08 1H09 2H09

64

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Financial Results

Canada

Half Year Comparison

$CAm

Revenue Breakdown

130 $CAm

Total Revenue

Half Year Comparison

76.0 76.4 81.8 74.7 76.4 80 90 $CAm

Revenue Breakdown

96.2 114.6 116.1 108.5 104.1 102.6

110 120 130 63.6 60 70 80 90 100 40 50 50 60 70 21.4 24.1 27.5 14.4 17.4 14.5 20 30 20 30 40 2.9 6.7 1.5 0.1 5.1 7.9 1.5 0.1 4.1 6.6 1.2 0.4 3.2 7.6 1.2 0.3 2.6 7.2 1.5 0.7 2.1 7.1 1.4 1.1 10 Register Maintenance Corporate Actions Stakeholder Relationship Employee Share Plans Communication Services Technology & Other Revenue 10 1H07 2H07 1H08 2H08 1H09 2H09

65

Maintenance Relationship Management Plans Services Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Appendix 2: Country Summaries

EMEA

66

Financial Results

United Kingdom

Half Year Comparison

GBP

Half Year Comparison

.7 45.0 50

Revenue Breakdown

GBPm 86.5 96.4 90 100 GBPm

Total Revenue

29.7 30.4 33.6 29.6 37. 32.5 34.0 30 40 53.7 55.5 57.1 60 70 80 0.6 .4 11.8 .4 .3 20 50.4 30 40 50 10 1.8 9.4 1.1 1.0 4.7 2.7 9.8 1.5 1.4 8.2 1.6 9.3 0.8 1.8 10 2.4 1 1.4 1.5 2.7 10 1.0 2.1 1.8 10 1.3 4.0 10 10 20 Register Maintenance Corporate Actions Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue

1H07 2H07 1H08 2H08 1H09 2H09

1H07 2H07 1H08 2H08 1H09 2H09

67

Financial Results

I reland

Half Year Comparison

EURm

Revenue Breakdown

EURm

Total Revenue

Half Year Comparison

3.4 3.2 4 4.9 6 2.7 3.0 2.9 3.0 3 3.4 4.1 4.4 4.2 4.5 4.5 1.3 2 3 0.7 0.7 0.5 0.7 2 0.4 0.8 0.5 0.5 2 1 1.5 0.2 0.1 0.1 0.2 0.1 Register Maintenance Corporate Actions Funds Services Technology & Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09 1H07 2H07 1H08 2H08 1H09 2H09

68

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Germany

Half Year Comparison

6 EURm

Re e e B e kdo

EURm

Total Revenue

Half Year Comparison

9.8 11.6 10.1 10 11 12

Revenue Breakdown

31.2

30 35 EURm

Total Revenue

7.2 7.0 8.6 7.7 8.2 7.4 6.8 7 8 9

19.3 24.8 19 26.3

20 25 4.1 5.7 5.7 5.5 5.0 3.6 5.2 5.2 4 4 5 6

17.4 19

15 20 .7 5 2.9 5 0.8 5 3 6 1.8 3.4 2 3 4 5 10 0. 0.1 0.3 0.5 0.1 0.1 0.4 0.4 0.3 0.5 0.5 0.6 0.4 0.3 1 Register Maintenance Corporate Actions Stakeholder Relationship Management Employee Share Plans Communication Services Technology & Other Revenue 1H07 2H07 1H08 2H08 1H09 2H09

69

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

South Africa

Half Year Comparison

R B kd

ZARm

Total Revenue

Half Year Comparison

102.3 100.5 112.8 107.9 110 120 ZARm

Revenue Breakdown

136.1 123 4 140 160 81.5 87.6 80 90 100 87.7 99.7 115.2 113.1 123.4 100 120 50 60 70 60 80 12.1 12.9 12.6 23.3 15.5 20 30 40 20 40 6.3 10 Register Maintenance Corporate Actions 1H07 2H07 1H08 2H08 1H09 2H09

70

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Financial Results

Russia

Half Year Comparison

RUBm

Revenue Breakdown Total Revenue

Half Year Comparison

255.6 277.4 247.7 300 RUBm

Revenue Breakdown

272.6 292.9 284.5 300 RUBm 179.8 247.7 200 250 179.8 200 250 128.5 102 8 150 128.5 03 0 150 36.8 102.8 50 100 103.0 50 100 17.0 15.6 0.3 Register Maintenance Corporate Actions 1H07 2H07 1H08 2H08 1H09 2H09 1H07 2H07 1H08 2H08 1H09 2H09

71

1H07 2H07 1H08 2H08 1H09 2H09

Financial Results

Appendix 3: Assumptions

Assumptions

72

Assumptions: Exchange Rates

Financial Results

Average exchange rates used to translate profit and loss to US dollars

USD 1.00000 AUD 1.31946 HKD 7.76874 NZD 1.62827 INR 47.0214 CAD 1.14155 GBP 0 61234 GBP 0.61234 EUR 0.71780 ZAR 8.77224 RUB 28.6471 AED 3.67288

73