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

Computershare Limited Half Year Results 2009 Presentation Stuart Crosby Peter Barker 11 February 2009

CEO’s Report Financial Results I ntroduction 2

Introduction President & CEO Stuart Crosby 3

Results Highlights Introduction 1H09 vs 2H 08 vs 1H 08 Management earnings per share 26.14 cents up 8% down 4% Operating revenues $783.0m down 1% down 1% Operating costs $544.1m down 5% up 2% Management EBITDA $238.6m up 8% down 7% EBITDA margin 30.5% + 260bps - 220bps Management net profit after OEI $145.2m up 8% down 7% Free cash flows $147.3m up 26% down 21% Interim Dividend AU 11 c flat up 10% Dividend franking 40% vs 30% vs 20% Note: all results are in USD except for dividend 4

Computershare Strengths Introduction › Strong balance sheet, low gearing and robust cash generation › More than 70% of revenue recurring in nature › Revenues, cash-flows and margins holding up very well despite the challenging environment › Continued strong investment in R&D and product development › Global diversification across 17 countries including long term growth engines China, India and Russia › Proven technology capabilities and innovation › Demonstrated ability to acquire and integrate businesses › Unique cross-border transaction capabilities 5

Outlook Introduction Unchanged from the AGM – we expect USD management earnings per share for financial year 2009 to be about the same as last year, perhaps marginally behind. This assumes equity, interest rate and FX market conditions remain broadly consistent with current levels for the rest of the financial year. While USD guidance is flat on FY08 Mgt EPS USD 51.6 cps FY08, AUD guidance at current AUD/ USD @ 8/ 08 0.87 AUD 59.3 cps forex rates is now about 30% up AUD/ USD @ 2/ 09 0.67 AUD 77.2 cps on last year (at August 08 rates). 6

CEO’s Report Financial Results I ntroduction 7

Financial Results Peter Barker CFO 8

Drivers behind financial performance › Corporate action environment › Interest rate levels › Balances › Acquisitions › Cost reductions and operating efficiencies › Foreign exchange › Balance sheet management 9

Group Financial Performance – US$m Financial Results Variance Variance 1H09 t o 1H09 t o 2H08 1H08 1H09 2H08 1H08 Sales Revenue 772.7 784.2 (1% ) 779.8 (1% ) Interest & Other Income 10.3 10.1 2% 8.5 22% Tot al Revenue 783.0 794.3 (1% ) 788.2 (1% ) Operating Costs 544.1 573.6 (5% ) 532.4 2% Share of Net (Profit)/ Loss of Associates 0.3 (1.1) (1.6) Management EBITDA 238.6 221.8 8% 257.4 (7% ) Management Adjustments - Revenue/ (Expense) (16.1) (8.2) 0.9 Report ed EBITDA 222.5 213.6 4% 258.3 (14% ) Management EPS 26.14 24.25 8% 27.36 (4% ) 10

Financial Results 1H09 1H08 Rolling 12 months Management EPS Performance 1H07 1H06 1H05 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 1H09 6.60 9.52 8.82 13.92 17.86 18.83 27.36 24.25 26.14 12

HY09 Management NPAT Analysis Financial Results $USm 1 EBITDA - EMEA 2 Tax 3 OEI 4 Depn & Amort 5 Interest 6 EBITDA - AP 7 EBITDA - NA 13

Net Operating Cash Flows Financial Results $USm Operat ing Cash Flow Vs. Capit al Expendit ure 240 206.2 210 183.5 180 159.9 141.1 150 137.5 117.8 120 90 65.8 60 24.0 30 18.8 14.6 17.9 12.6 10.4 7.8 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 Operat ing Cash Flow s Capit al Expendit ure 14

Free Cash Flow Financial Results Operating Cash Flow s less Capital Expenditure $USm 200 187.4 Free Cash Flow: - 3 year 1H CAGR 42% 165.6 - 5 year CAGR 55% 147.3 150 129.7 117.1 107.4 100 51.3 50 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 15

Half Year Comparisons – Revenue & EBI TDA Financial Results $USm 900 300 257. 4 750 250 238. 6 R E 221.8 e B v I 188.7 600 200 181. 7 e T n D u 140. 4 A 450 1 50 e 99. 7 300 1 00 1 50 50 694.0 783. 0 588.1 626. 7 724. 4 788. 2 794.3 0 0 1 H06 2H06 1 H07 2H07 1 H08 2H08 1 H09 Total Revenue M anagement EBITDA 16

Half Year Comparisons – Revenue & EBI TDA Financial Results 1st Half $USm $USm $USm 2nd Half $USm 800 300 800 300 257.4 700 700 238.6 250 250 221.8 600 600 1 88.7 200 200 181.7 500 500 140.4 400 150 400 150 300 300 100 100 200 200 694.0 783.0 788.2 50 50 100 100 794.3 724.4 626.7 0 0 0 0 1H07 1H08 1H09 2H06 2H07 2H08 Revenue Management EBITDA Revenue Management EBITDA 17

Management EBI TDA Margin Financial Results 35% 32.7% 30.5% 30% 27.2% 27.9% 25% 22.4% 25.1% 20.4% 18.5% 20% 17.0% 15% 10% 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 18

Revenue Breakdown – US$m Financial Results Variance Variance 1H09 t o 1H09 t o 1H09 2H08 2H08 1H08 1H08 386.0 411.1 (6% ) 406.5 (5% ) Register Maintenance 155.2 134.2 16% 169.4 (8% ) Corporate Actions 36.2 49.6 (27% ) 41.7 (13% ) Fund Services 35.9 49.1 (27% ) 39.9 (10% ) Stakeholder Relationship Mgt 54.1 60.0 (10% ) 59.0 (8% ) Employee Share Plans 83.5 60.9 37% 44.4 88% Communication Services 32.1 29.5 9% 27.3 18% Technology & Other Revenue Tot al Revenue 783.0 794.3 788.2 (1% ) (1% ) Note: Included in the revenue results are $86.4m of Margin Income (2H08: 94.1m; 1H08: $123.4m) and $116.4m of Recoverable Income (2H08:139.5m; 1H08: $116.3m). 19

Margin I ncome analysis Financial Results US$m 140 123.4 120 100 94.1 89.7 86.4 84.0 80 65.3 60 52.1 40 20 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 Average interest rates: UK 4.55% 4.50% 4.78% 5.31% 5.71% 5.19% 4.16% US 3.70% 4.66% 5.25% 5.25% 4.85% 2.67% 1.53% Canada 2.79% 3.77% 4.25% 4.25% 4.45% 3.51% 2.58% Average balances (US$bn)* 6.4 6.4 6.4 7.0 8.7 8.7 7.2 * Note: some balances attract no interest or a set margin for Computershare 20

Regional Analysis – 1H09 Revenue & EBI TDA Financial Results EBI TDA Breakdown Total Revenue Breakdown 23% 30% 39% 42% 38% 28% Asia Pacific EMEA North America Asia Pacific EMEA North America 21

Half Year Comparisons – Operating Costs Financial Results $USm 600 500 147.4 137.4 139.7 137.0 138.9 133.2 144.5 400 300 426.2 406.7 404.9 200 395.4 367.4 355.2 345.0 100 0 1H06 2H06 1H07 2H07 1H08 2H08 1H09 Operating Costs excl. COS Cost of Sales (COS) 22

Technology Costs – Continued I nvestment to Financial Maintain Strategic Advantage Results US$m % 100 12% 1 1 % 90 1 0% 1 0% 1 0% 1 0% 9% 80 9% 82.7 80.1 77.1 70 70.3 8% 60 61 .7 59.1 56.4 50 40 4% 30 20 10 0 0% 1H06 2H06 1H07 2H07 1H08 2H08 1H09 Tot al Technology cost s Technology cost s as a % of sales revenue 23

Analysis of 1H09 Technology Costs Financial Results 5% 22% 45% Total Costs US$82.7m Development Costs US$36.6m 28% Development Infrastructure Maintenance Administration 24

Analysis of Technology Costs Financial Results $USm 100 4.4 80 3.1 18.5 1.4 21.9 1.7 60 20.3 23.2 29.2 21.8 40 18.9 9.3 20 36.6 30.3 21.1 18.8 0 1H06 1H07 1H08 1H09 Development Infrastructure Maintenance Admin 25

Balance Sheet as at 31 December 2008 Financial Results Variance Variance Dec-08 Jun-08 Dec-07 Dec-08 to Dec-08 to Jun-08 Dec-07 US$'000s US$'000s US$'000s Current Assets 439,046 516,129 (15% ) 369,763 19% Non Current Assets 1,754,871 1,721,889 2% 1,520,793 15% Total Assets 2,193,917 2,238,018 1,890,556 (2% ) 16% Current Liabilities 321,255 436,912 (26% ) 332,971 (4% ) Non Current Liabilities 1,082,008 1,030,910 5% 874,854 24% Total Liabilities 1,403,263 1,467,822 (4% ) 1,207,825 16% Total Equity 790,654 770,196 682,731 3% 16% 26

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 10.4 10 8.7 2.0 1.72 1.68 1.64 8 1.5 6 0.94 1.0 4 0.5 2 0.0 0 FY05 FY06 FY07 FY08 1H09* FY05 FY06 FY07 FY08 1H09* * Rolling 12 months 27

Computershare Borrowings Financial Results Dec-08 Jun-08 Variance Dec-07 Variance Dec-08 to Dec-08 to US$m US$m US$m Jun-08 Dec-07 Cash 155.7 124.2 25% 108.0 44% I nterest Bearing Liabilities * 947.2 910.9 4% 747.4 27% Net Debt 791.6 786.7 1% 639.3 24% Management EBITDA * * 460.4 479.2 (4% ) 439.1 5% Net Debt to Management EBI TDA 1.72 1.64 5% 1.46 18% * Average Tenor of drawn debt at 31 December 2008 was 4.8 years. * * Rolling 12 months 28

Debt Facility Maturity Profile Financial Results Debt Facility Debt Maturity Profile Facility (USD $m) utilised FY09 nil nil FY10 200.0 nil US$m FY11 600.0 402.7 FY12 123.0 123.0 700 FY13 nil nil 600.0 FY14 nil nil 600 FY15 124.5 124.5 FY16 nil nil 500 FY17 21.0 21.0 FY18 nil nil 400 FY19 235.0 235.0 Total 1303.5 906.2 300 235.0 200.0 200 123.0 124.5 100 21.0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 29