Computershare Limited Half Year Results 2013 Presentation Stuart - - PowerPoint PPT Presentation

Computershare Limited Half Year Results 2013 Presentation

Stuart Crosby Peter Barker 13 February 2013

2

Introduction Financial Results CEO’s Report

PRESI DENT & CHI EF EXECUTI VE OFFI CER

Stuart Crosby

Introduction

4

Results Summary

Statutory Results

Introduction * Prior period Statutory results were restated due to re-measurement of put option liability. Refer to ASX Appendix 4D Note 2 Note: all figures in this presentation are in USD M unless otherwise indicated

Management adjusted 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 Company’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. They are predominantly non-cash items.

This year’s non-cash management adjustments include significant amortisation of identified intangible assets from businesses acquired in recent years, which will recur in subsequent years, and one-off charges. Cash adjustments are predominantly expenditure on acquisition- related and other restructures, and will cease once the relevant acquisition integrations and restructures are complete. A full description of all management adjustment items is included in the ASX Appendix 4D Note 8. The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards. 1H13 Vs 2H12 Vs 1H12 (pcp) Earnings per share (post NCI )

17.02 cents 54.1%* (15.2%)*

Total Revenues

$987.6m (7.7%) 25.4%

Total Expenses

$895.0m (9.2%) 38.8%

Statutory Net Profit (post NCI )

$94.6m 54.1%* (15.2%)*

Reconciliation of Statutory results to Management Adjusted results 1H13 Net profit after tax per statutory results $94.6m Management Adjustments (after tax)

Recurring – Amortisation – Intangibles 33.0 Recurring – Marked to Market (0.4) Recurring – Indian acquisition put option liability 0.8 Non Recurring – Acquisition costs 20.9 Non Recurring – Provision for tax liability 0.4

Total Management Adjustments

$54.7m

Net Profit after tax per Management Adjusted results $149.3m

5 Note: all results are in USD M unless otherwise indicated

Results Summary

Management Adjusted Results

Introduction

1H 2013 2H 2012 v 2H 2012 1H 2012 v 1H 2012 1H 2013 @ 1H 2012 exchange rates Management Earnings per share (post NCI ) US 26.87 cents US 26.00 cents

Up 3.3%

US 23.09 cents

Up 16.4%

US 27.26 cents Total Revenue $987.6 $1,037.3

Down 4.8%

$781.4

Up 26.4%

$1,003.4 Operating Costs $746.3 $790.2

Down 5.6%

$569.9

Up 30.9%

$758.9 Management Earnings before I nterest, Tax, Depreciation and Amortisation (EBI TDA) $241.4 $247.5

Down 2.4%

$211.5

Up 14.1%

$244.6 EBI TDA Margin 24.4% 23.9%

Up 60 bps

27.1%

Down 270 bps

24.4% Management Net Profit after NCI $149.3 $144.5

Up 3.3%

$128.3

Up 16.4%

$151.5 Days Sales Outstanding 48 days 43 days

Up 5 days

42 days

Up 6 days

Cash Flow from Operations $133.3 $188.2

Down 29.2%

$146.4

Down 8.9%

Free Cash Flow $109.7 $158.1

Down 30.6%

$136.4

Down 19.6%

Capital Expenditure $23.9 $37.9

Down 36.9%

$24.2

Down 1.2%

Net Debt to EBI TDA ratio 2.72 times 2.86 times

Down 0.14 times

2.92 times

Down 0.20 times

I nterim Dividend AU 14 cents AU 14 cents

Flat

AU 14 cents

Flat

I nterim Dividend franking amount 20% 60%

Down from 60%

60%

Down from 60%

6

Drivers Behind 1H13 Financial Performance

Introduction

› Revenue in transactional business lines, especially corporate actions, remain

• depressed. Proxy solicitation (corporate and mutual fund) still suffering.

› Register maintenance revenues better, but still soft due to lower activity based fees and holder attrition. › Continued strong cost focus in traditional business lines, to some extent masked by technology investment and capex to support integration. A simple example – if all synergies expected from the Shareowner Services integration were already realised, EBITDA margin would be nearly 3% higher. › Employee share plans continue to perform strongly, with continuing realisation of benefits from the HBOS EES acquisition (migrations almost completed). › Margin balances remain strong, but today’s liquidity environment puts pressure

• n what banks will pay for deposits and therefore on yields on rolled hedges.

› Serviceworks group continues to track well and ahead of plan. › SLS continues to win business but growth has slowed as some on-boardings have been delayed by external factors. We remain very confident about the business going forward, but are realising that growth can be quite lumpy.

Computershare Strengths

7 Introduction

› Leading market position in all major markets for equity investor record-keeping and employee stock plan administration based on: › sustainable advantages in technology, operations, domain knowledge and product development; › sustained quality excellence and operational efficiency; and › a joined-up global platform (20+ countries including China, India and Russia), and seamless development and execution of cross-border solutions. › Demonstrated track record for successfully moving into new business lines with similar operational and market profiles, and integrating and delivering synergies from acquisitions in existing business lines. › Well over 70% of revenues recurring in nature. › Long track record of excellent cash realisation from operations. › Balance sheet remains strong and gearing remains prudent, with average maturity 5 years and no more than USD 305M maturing in any one financial year.

Guidance

8 Introduction

› In November 2012 at the AGM we said that we expect Management eps to be between 10% and 15% higher than in FY12. › Since November, there has been an increase in optimism about a range of the economies in which we operate and equity market price levels have risen. To date, we have seen no material flow through of these factors to our businesses. › We continue to expect Management eps for FY13 to be between 10% and 15% higher than in FY12. › As usual, our assessment of the outlook assumes that equity, foreign exchange and interest rate markets remain at current levels.

9

Introduction Financial Results CEO’s Report

CHI EF FI NANCI AL OFFI CER

PETER BARKER

Financial Results

11

Group Financial Performance

Note: all results are in USD M unless otherwise indicated

Financial Results

1H 2013 2H 2012 % variance to 2H 2012 1H 2012 % variance to 1H 2012

Sales Revenue $974.7 $1,030.6 (5.4%) $772.0 26.3% Interest & Other Income $12.9 $6.7 92.6% $9.4 37.2%

Total Revenue $987.6 $1,037.3 (4.8% ) $781.4 26.4%

Operating Costs $747.6 $790.2 (5.4%) $569.9 31.2% Share of Net (Profit)/Loss of Associates ($1.4) ($0.3) ($0.1)

Management EBI TDA $241.4 $247.5 (2.4% ) $211.5 14.1% Statutory NPAT $94.6 $61.4 54.1% $111.5 (15.2% ) Management NPAT $149.3 $144.5 3.3% $128.3 16.4% Management EPS (US cents) 26.87 26.00 3.3% 23.09 16.4% Statutory EPS (US cents) 17.02 11.04 54.1% 20.06 (15.2% )

12

Management EPS

Financial Results

31.38 26.96 23.09 26.87 26.42 28.71 26.00 57.80 55.67 49.09

10 20 30 40 50 60 70

2010 2011 2012 2013 US Cents 1H 2H FY

13

1H13 Management NPAT Analysis

Financial Results

128.3 149.3 34.3 1.8 0.0 1.6 0.5 9.6 5.7 2.5 14.7 3.4 0.4

100 110 120 130 140 150 160 170 180

1H12 NPAT EBI TDA - USA EBI TDA - Canada EBI TDA - ANZ EBI TDA - UCI A EBI TDA - ASI A EBI TDA - CEU EBI TDA - Tech & Corp Tax Expense I nterest Expense Dep'n & Amort NCI 1H13 NPAT

USD M

14

Revenue & Management EBI TDA

Half Year Comparisons

Financial Results

807.5 812.1 781.0 837.6 781.4 1,037.3 987.6 274.8 236.1 246.0 247.6 211.5 247.5 241.4 34.0% 29.1% 31.5% 29.6% 27.1% 23.9% 24.4%

0% 10% 20% 30% 40% 50% 60% 200 400 600 800 1,000 1,200

1H10 2H10 1H11 2H11 1H12 2H12 1H13 Operating Margin % Revenue & EBI TDA USD M Revenue Management EBI TDA Operating Margin

15

Revenue Breakdown

Financial Results

Note: all results are in USD M unless otherwise indicated

Revenue Stream 1H 2013 2H 2012 % variance to 2H 2012 1H 2012 % variance to 1H 2012

Register Maintenance

$394.7 $440.6

(10.4%)

$334.2

18.1% Corporate Actions

$92.8 $88.7

4.7%

$67.4

37.7% Business Services

$241.8 $234.7

3.0%

$148.3

63.1% Stakeholder Relationship Mgt

$31.2 $52.2

(40.2%)

$34.6

(9.9%) Employee Share Plans

$112.5 $112.3

0.1%

$85.0

32.3% Communication Services

$98.3 $91.7

7.3%

$90.3

8.9% Technology & Other Revenue

$16.3 $17.2

(5.0%)

$21.5

(24.3%)

Total Revenue $987.6 $1,037.3 (4.8% ) $781.4 26.4%

Revenue & Management EBI TDA – Regional Analysis Half Year Comparisons

16

Revenue Breakdown EBI TDA Breakdown

Financial Results

41.6 31.6 31.6 27.2 36.0 30.8 19.9 19.4 15.0 18.1 56.8 62.4 60.7 56.9 60.7 2.2 12.4 3.1 7.4 4.0 66.2 69.1 43.2 90.2 77.6 48.4 52.2 53.6 50.8 45.1

246.0 247.6 211.5 247.5 241.4

50 100 150 200 250 300

1H11 2H11 1H12 2H12 1H13 USD M

Australia & NZ Asia UCIA Continental Europe USA Canada

184.3 180.9 214.1 200.7 232.2 68.3 57.5 57.1 54.0 59.7 141.2 162.9 147.9 156.9 150.4 34.3 58.1 45.1 62.9 41.1 258.5 266.4 217.7 452.5 407.2 94.5 111.7 99.4 110.5 97.0

781.0 837.6 781.4 1,037.3 987.6

200 400 600 800 1,000 1,200

1H11 2H11 1H12 2H12 1H13 USD M

Australia & NZ Asia UCIA Continental Europe USA Canada

17

Margin I ncome Analysis

Average Market Interest rates * 1H10 2H10 1H11 2H11 1H12 2H12 1H13 UK 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% US 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Canada 0.25% 0.29% 0.88% 1.00% 1.00% 1.00% 1.00% Australia 3.24% 4.10% 4.58% 4.76% 4.64% 4.05% 3.34% Financial Results

Note 1: Some balances attract no interest or a set margin for Computershare Note 2: Analysis includes Shareowner Services client funds from 2H12 * UK – Bank of England MPC Rate; US – Fed Funds Rate; Canada – Bank of Canada Overnight Target Rate; Australia – RBA Cash Rate

74.5 77.5 84.5 87.0 89.0 117.4 120.0 8.2 8.8 9.2 11.2 12.1 15.4 16.7

2 4 6 8 10 12 14 16 18 20 40 60 80 100 120 140 160 180 200

1H10 2H10 1H11 2H11 1H12 2H12 1H13 USD Billion USD Million Margin I ncome Average balances

18

1H13 Client Balances – I nterest Rate Exposure

Average funds (USD 16.7b) held during 1H13

Financial Results

No exposure 22% ($3.6b) Effective hedging: natural 6% ($0.9b) Effective hedging: derivative / fixed rate 24% ($4.0b) Exposure to interest rates 48% ($8.1b)

CPU had an average of USD16.7b of client funds under management during 1H13. For 22% ($3.6b) of the 1H13 average client funds under management, CPU had no exposure to interest rate movements either as a result of not earning margin income, or receiving a fixed spread on these funds. The remaining 78% ($13.1b) of funds were “exposed” to interest rate movements. For these funds:

• 24% had effective hedging in place (being

either derivative or fixed rate deposits).

• 6% was naturally hedged against CPU’s
• wn floating rate debt.

The remaining 48% was exposed to changes in interest rates.

1H13 Client Balances – I nterest Rate Exposure and Currency

19

“Exposed Funds” by Currency (1H13 Average Balances)

Average exposed funds balance net of hedging US$8.1b (US$16.7b x 48% ) Average exposed funds balance prior to any hedging US$13.1b (US$16.7b x 78% )

Total Exposed Funds

(both hedged and non-hedged)

Non-hedged Exposed Funds

Financial Results

AUD 3% ($0.3b) CAD 19% ($2.5b) GBP 25% ($3.3b) USD 49% ($6.5b) Other 4% ($0.5b) AUD 3% ($0.3b) CAD 28% ($2.3b) GBP 20% ($1.6b) USD 44% ($3.5b) Other 5% ($0.4b)

Client Balances – Forward view of Hedges

Fixed Rate Deposits and Derivatives in place at 31 Dec 2012

20

Financial Results

Policy: Minimum hedge of 25% / Maximum hedge of 100% Minimum term 1 year / Maximum term 5 years (some exceptions permitted under the Board policy) Current Strategy: Continue to monitor medium term swap rates with the intention of accumulating cover should rates rise materially

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Hedging (fixed rate deposits) Hedging (derivatives) USD M Total hedges

21

Total Management Operating Costs

Half Year Comparisons

Financial Results

396.8 427.1 395.4 436.2 437.9 593.4 577.9 138.8 148.6 139.6 154.2 132.0 196.8 168.3 535.6 575.7 535.1 590.4 569.9 790.2 746.3

100 200 300 400 500 600 700 800 900

1H10 2H10 1H11 2H11 1H12 2H12 1H13 USD M

Controllable Costs (excl COS) Cost of Sales (COS)

22

Management Operating Costs

Half Year Comparisons

* Corporate operating costs have been allocated and reported under the five main cost categories – cost of sales, personnel, occupancy, other direct and

• technology. Technology costs includes personnel, occupancy and other direct costs attributable to technology services.

Financial Results

138.8 263.7 30.3 22.7 80.0 148.6 283.7 34.8 26.8 81.8 139.6 256.1 33.9 24.6 80.7 154.2 293.4 34.6 28.9 79.3 132.0 290.4 36.9 20.7 89.9 196.8 365.9 44.3 60.6 122.6 168.3 361.6 39.2 47.7 129.4

50 100 150 200 250 300 350 400 450

Cost of Sales Personnel Occupancy Other Direct Technology USD M 1H10 2H10 1H11 2H11 1H12 2H12 1H13

23

Technology Costs

Continued I nvestment to Maintain Strategic Advantage

Financial Results

32.9 33.0 28.8 26.6 34.7 23.0 31.2 23.3 26.3 20.2 23.9 21.8 46.5 48.4 19.9 19.0 27.6 26.1 30.5 45.9 44.2 3.9 3.4 4.1 2.7 2.9 7.2 5.7 80.0 81.8 80.7 79.3 89.9 122.6 129.4 10.0% 10.1% 10.3% 9.5% 11.5% 11.8% 13.1%

0% 2% 4% 6% 8% 10% 12% 20 40 60 80 100 120 140 160

1H10 2H10 1H11 2H11 1H12 2H12 1H13 Technology costs as a % of revenue USD M

Development Infrastructure Maintenance Admin Technology costs as a % of revenue

24

Free Cash Flows

Note 1: 1H10 US$49.7m includes acquisition of Land and Buildings in the UK (US$34.7m) Note 2: Excludes assets purchased through finance leases which are not cash outlays

Financial Results

206.7 207.7 148.4 171.2 146.4 188.2 133.3 49.7 7.3 8.0 15.4 10.0 30.1 23.6

50 100 150 200 250

1H10 2H10 1H11 2H11 1H12 2H12 1H13 USD M

Operating Cash Flows Cash outlay on Capital Expenditure

25

1H13 Operating Cash Flows Analysis

Financial Results

146.4 133.3 42.1 46.4 16.5 49.6 35.5

20 40 60 80 100 120 140 160 180 200

Net Operating Cash Flow 1H12 Statutory Profit after Tax Non-Cash P&L I tems I ncrease in Assets I ncrease in Loan Servicing Advances I ncrease in Payables, Provisions & Tax Net Operating Cash Flow 1H13 USD M

26

Balance Sheet as at 31 December 2012

Financial Results

Dec-12 Jun-12 Variance USD M USD M Dec-12 to Jun-12

Current Assets $992.0 $956.6 3.7% Non Current Assets $2,759.7 $2,725.0 1.3%

Total Assets $3,751.6 $3,681.7 1.9%

Current Liabilities $767.1 $550.9 39.3% Non Current Liabilities $1,796.2 $1,976.5 (9.1% )

Total Liabilities $2,563.3 $2,527.3 1.4% Total Equity $1,188.3 $1,154.3 2.9%

See CPU interim Financial Statements Appendix 4D as at 31 December 2012 for full details. Dec-12 current liabilities includes the USD 250M club debt facility which matures in October 2013.

27

Key Financial Ratios

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

Financial Results

Dec‐12 Jun‐12 Variance USD M USD M Dec‐12 to Jun‐12 Interest Bearing Liabilities $1,771.3 $1,754.4 1.0% Less Cash ($442.4) ($441.4) 0.2% Net Debt $1,328.8 $1,313.0 1.2% Management EBITDA (rolling 12 months) $488.8 $459.0 6.5% Net Debt to Management EBITDA 2.72 times 2.86 times Down 0.14 times

22.1 22.3 17.0 15.1 13.2 9.5 7.3

5 10 15 20 25

1H10 2H10 1H11 2H11 1H12 2H12 1H13 Times

1.42 1.40 1.42 1.35 2.92 2.86 2.72

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

1H10 2H10 1H11 2H11 1H12 2H12 1H13 Times

28

Debt Facility Maturity Profile

Note: Average debt facility maturity is now 5.0 years

Maturity Dates USD M Debt Committed Bank Private Placement Drawn Debt Facilities Debt Facility Facility FY13 Nil Nil Nil Nil FY14 Oct-13 245.7m 250.0m 250.0m FY15 Dec-14 72.7m 150.0m Mar-15 124.5m 124.5m 124.5m FY16 Oct-15 295.9m 300.0m 300.0m FY17 Oct-16 150.8m 250.0m 250.0m Mar-17 21.0m 21.0m 21.0m FY18 Feb-18 40.0m 40.0m 40.0m FY19 Jul-18 235.0m 235.0m 235.0m Feb-19 70.0m 70.0m 70.0m FY22 Feb-22 220.0m 220.0m 220.0m FY24 Feb-24 220.0m 220.0m 220.0m TOTAL $1,695.6m $1,880.5m $800.0m $930.5m

124.5 21.0 235.0 40.0 70.0 220.0 220.0 150.0 72.7 250.0 300.0 250.0 245.7 295.9 150.8

50 100 150 200 250 300 350

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 USD M

USPP New USPP SLS Advance Facility SLS Advance Facility drawn Syndicated Debt Facility Syndicated Debt drawn

29

Capital Expenditure vs. Depreciation

Financial Results Notes: 1H10 US$49.7m includes acquisition of UCI A HQ building in Bristol, UK. 2H10 US$44.2M includes conversion of group HQ building in Melbourne, Australia from operating lease to finance lease. 9.2 10.4 4.7 14.6 17.2 11.1 6.4 1.7 0.8 1.0 4.6 3.9 2.1 2.7 35.9 30.0 1.0 2.5 3.2 23.7 12.9 3.0 3.0 2.0 1.8 0.9 2.0

49.7 44.2 8.7 23.5 24.2 37.9 23.9 10 20 30 40 50 60

1H10 2H10 1H11 2H11 1H12 2H12 1H13 USD M

Information Technology Communication Services Facilities Occupancy Other Depreciation

30

Working Capital Management

Financial Results

40 41 38 41 42 43 48

5 10 15 20 25 30 35 40 45 50

1H10 2H10 1H11 2H11 1H12 2H12 1H13

• No. Of Days

Days Sales Outstanding

31

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

Financial Results

The FY12 ROI C calculation included a full year proforma for Serviceworks, SLS and Shareowner Services

10.41% 9.83% 8.61% 8.63% 17.36% 16.94% 13.57% 13.61% 19.90% 18.45% 14.37% 14.73% 31.44% 26.93% 22.34% 24.28% 0% 5% 10% 15% 20% 25% 30% 35% FY10 FY11 FY12 1H13 WACC ROI C (Previous) ROI C (Revised) * ROE

* ROI C = (EBI TDA less Depreciation less I ncome Tax expense)/ (Total Debt add Total Equity less Cash)

Equity Management I nterim Dividend of 14 cents (AU)

32 Financial Results

EPS ‐ Statutory US 17.02 cents EPS ‐ Management US 26.87 cents Interim Dividend AU 14 cents (20% franked) Current Yield* 2.8%

* Based on 12 month dividend and share price of AU$10.07 (close 8th Feb 2013)

33

Financial Summary – Final Remarks

Financial Results

› We continue to experience generally difficult trading conditions across most business lines. › However, ongoing disciplined expense and capital expenditure management continue to drive solid results and cash flow. › The Serviceworks and SLS acquisitions are both performing well and are anticipated to be future growth engines. › The Shareowner Services acquisition is also performing well with integration and synergy realisation on track. › DRP further diversifies options for future sources of funding. › Maintained strong and conservative balance sheet. › Interim dividend unchanged at AUD 14 cents per share, franked to 20% (down from 60% ).

34

Introduction Financial Results CEO’s Report

PRESI DENT & CHI EF EXECUTI VE OFFI CER CEO PRESENTATI ON

Stuart Crosby

CEO’s Report

Group Strategy and Priorities

36 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. › Continue to seek acquisition and other growth opportunities where we can add value and enhance returns for our shareholders. In addition, we continue to commit priority resources in three areas: › Integration of recent acquisitions. › Lifting our market position. › Engaging with regulatory developments and market structure change in the many jurisdictions in which we operate.

37

Delivery against strategy

CEO’s Report

Delivering on the first two limbs of the strategy (cost & revenue) is as always a key priority: › Our processes of measuring and benchmarking operational and shared services costs continue to deliver benefits. Over the next period, the Shareowner Services business’s off-shore capabilities are expected to bring meaningful quality benefits and savings when deployed to the legacy US client base, into other geographies, and beyond operations (e.g. for technology). › Our position at the top of independent service surveys across the world evidences our quality achievements. › Revenue initiatives continue to deliver benefits, and there is some evidence of pricing benefits from the sustained quality and innovation we have delivered, but these are being overpowered by revenue drag from shareholder attrition and soft transactional volumes. Our search for inorganic growth opportunities in existing business areas (including some of the newer business services lines) is quite active.

Acquisitions update – Shareowner Services

38

› While revenues remain softer than originally expected (as with most of our investor services assets around the world), the integration has been very smooth, with accompanying client benefits (many major clients re-signed or re- signing), and migrations and synergy realisation are running on or ahead of plan. › Post migration management structure agreed and announced. › Client attrition remains within our acquisition assumptions.

CEO’s Report

Costs to realise USD M

Said we expected 50.0 To date (as at Dec 12) 23.4 Expect to come 30.1 Increase 3.5

Synergies expected (as at Aug 12) USD M FY12 FY13 FY14 FY15

Said we expected 9.3 25.0 35.0 5.0 Cumulative expected 34.3 69.3 74.3

Synergies (current expectations) FY12 FY13 FY14 FY15

Delivered 9.3 11.0 Incremental expected 15.7 36.8 5.0 Cumulative expected 36.0 72.8 77.8

USA Update

› Encouraging new business outcomes across the combined US TA business, winning the majority of IPOs and several competitive tenders, but M&A activity is still weak. › Employee Plans is also winning business and revenue for the Shareowner Services Plans business is tracking well. › Fund Services activity continues to plumb new depths. Headcount has been reduced by a further 33%. › Corporate Proxy continues to win a majority of the opportunities from the Shareowner Services book. M&A activity remains pretty flat. › KCC Corporate Restructuring maintains its leadership in both the total and mega case market. KCC Class Actions is yet to achieve ideal name recognition with some law firms in chasing the mega deals in specific areas. However it is winning more deals overall and, through our major company relationships, being added to the tender panels of major class action targets.

CEO’s Report 39

Canada Update

› The Canadian market continues to be competitive so client retention remains a priority. › Transactional activity continues to be down from prior years, however, client revenues holding up well. › Corporate Actions remain soft, however, we have benefitted from larger transactions in the mining and commodities sector. › Employee Plans and Fixed Income see revenue growth against 1H12. › Communication Services continues to win commercial mandates through financial institution relationships. › Operational costs continue to see year over year reduction driven by lower transactional activity and efficiency programs. › Working closely with all major participants in continued market structure debate.

CEO’s Report 40

41

UCI A Update

CEO’s Report

› Employee Plans business continues to perform well with good new client wins and up-sell to its existing client base. Recovery in equity markets has helped improve transactional revenue although this remains volatile. › The tenancy deposit franchise continues to grow. In addition to DPS in England and Wales and LPS Scotland, a new scheme set to launch in Northern Ireland as well as a new complimentary insurance scheme in England and Wales › Investor Services business is stable with no immediate signs of material uplift in corporate actions activity. Anticipating market structure changes in the UK and Ireland driven by new EU legislation which will impact in the medium term. › Voucher Services is performing satisfactorily, and operational restructure and relocation to our main UK facility is helping to unlock further efficiencies. We continue to track and influence the public policy debate that may impact this service in the future.

42

Continental Europe Update

CEO’s Report

› Flat markets in most of CEU region, but the IPO pipeline in the Nordics and in Germany starting to fill up. › Germany saw largest IPO for the last 5 years (Telefonica Germany). We run the register and will provide meeting services. Spin-off of Osram from Siemens will happen in April, CPU chosen as registrar and meeting services provider. › Strong performances by Servizio Titoli in Italy due to extraordinary meetings. › Less market activity and weak 1H13 for Corporate Proxy in Southern Europe. › Russian business performing well and running corporate actions with high visibility (eg, share buy-back of Baltika Breweries). We have moved from 80% to 100% ownership of the former NRC. › Continue to look for growth opportunities in an uncertain market environment. EU initiatives (i.e. T2S, CSD-R, SLD) gain momentum and will change the industry with upside potential.

43

Asia Update

CEO’s Report

› HK IPO activities were still subdued in 1H13, but some signs of improvement this year. The pipeline is still healthy so with a recovery in market sentiment these deals will come through. › Other corporate action activity has also been subdued due to market uncertainty. › Registry revenue remained stable. › Planning for dematerialisation of the HK equities market slipped further with possible implementation moving into 2016. › Chinese Employee Plans and Proxy businesses continue with healthy growth in both mandates and revenue. The new AGM administration business in China continues to do well and win clients. › In India a small number of IPOs have got away while the improvement in stock market performance boosted the AUM and therefore fees for the mutual fund services business.

44

Australia & New Zealand Update

CEO’s Report

› Our quality, service and client retention levels remain excellent across all our businesses. › Our Investor Services businesses in Australia and NZ continue to maintain their market leading positions. The corporate actions market remains subdued but we won our share – eg, Woolworths/SCA and Fonterra transactions. › Although the Communication Services market remains tough we continue to see opportunities, especially in leveraging our inbound capabilities. › The Plan Managers business continues to grow satisfactorily. › Serviceworks continues to grow revenue in Australia. Serviceworks has also had a small US presence for nine months with encouraging early signs. › In December 2012 we increased our investment in Digital Post Australia to 80%. During the last half we conducted a successful private launch and look forward to the public launch in the coming months.

Computershare Limited Half Year Results 2013 Presentation

Stuart Crosby Peter Barker 13 February 2013

46

Appendix: Half Year Results 2013 Presentation 13 February 2013

47

Group Comparisons

Appendix 1: Group Comparisons

CPU Revenues

Half Year Comparisons

48 Financial Results

39% 42% 42% 44% 43% 42% 40% 14% 9% 12% 10% 9% 9% 9% 17% 17% 17% 16% 19% 23% 24% 10% 10% 5% 7% 4% 5% 3% 6% 9% 9% 10% 11% 11% 11% 10% 10% 11% 10% 12% 9% 10% 4% 4% 3% 3% 3% 2% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1H10 2H10 1H11 2H11 1H12 2H12 1H13

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

49

Revenue by Product

Half Year Comparisons

Financial Results

317.3 342.9 330.8 367.7 334.2 440.6 394.7 112.2 71.0 96.8 82.7 67.4 88.7 92.8 139.8 136.5 131.2 134.9 148.3 234.7 241.8 81.6 81.9 39.5 57.6 34.6 52.2 31.2 49.6 70.1 74.0 83.6 85.0 112.3 112.5 78.1 80.9 84.7 87.5 90.3 91.7 98.3 28.8 28.8 24.1 23.6 21.5 17.2 16.3

807.5 812.1 781.0 837.6 781.4 1,037.3 987.6

200 400 600 800 1,000 1,200

1H10 2H10 1H11 2H11 1H12 2H12 1H13 US D M

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

50

Revenue

Half Year Comparisons

Financial Results

317.3 112.2 139.8 81.6 49.6 78.1 28.8 342.9 71.0 136.5 81.9 70.1 80.9 28.8 330.8 96.8 131.2 39.5 74.0 84.7 24.1 367.7 82.7 134.9 57.6 83.6 87.5 23.6 334.2 67.4 148.3 34.6 85.0 90.3 21.5 440.6 88.7 234.7 52.2 112.3 91.7 17.2 394.7 92.8 241.8 31.2 112.5 98.3 16.3

50 100 150 200 250 300 350 400 450 500 Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

USD M 1H10 2H10 1H11 2H11 1H12 2H12 1H13

51

1H13 Revenue

Regional Analysis

Financial Results

77.9 20.6 40.3 1.4 14.2 74.4 3.3 26.3 5.6 21.2 2.4 3.9 0.0 0.3 50.7 5.0 33.3 1.2 55.4 2.2 2.6 20.0 2.1 1.3 5.4 0.5 9.4 2.4 184.9 48.8 107.0 19.8 30.6 9.7 6.3 34.8 10.6 38.8 1.0 7.8 2.6 1.4

20 40 60 80 100 120 140 160 180 200

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue USD M ANZ Asia UCI A CEU USA Canada

52

Effective Tax Rate - Statutory & Management

Financial Results

26.6% 27.0% 22.3%

• 2.5%

27.8% 25.6% 25.1% 18.3%

• 5%

0% 5% 10% 15% 20% 25% 30% FY10 FY11 FY12 1H13 Tax Rate % Statutory Management The Group’s effective tax rate is negative 2.5% for the half-year ended 31 December 2012. The Group’s effective tax rate for the comparative six month period was 20.8%. Deductible interest expense and intangible asset amortisation has increased in the US as a result

• f its major acquisitions (which

were debt funded) in November and December 2011. Consequently, the US is anticipated to be in a tax loss position which gives rise to a negative tax expense. As the US has a relatively higher statutory tax rate compared to

• ther countries, the credit has

the impact of reducing the Group’s overall effective tax rate.

53

Country Summaries

Appendix 2: Country Summaries

54

Australia Half Year Comparison

Financial Results

217.3 165.2 192.6 167.4 198.1 187.9 218.3

50 100 150 200 250

1H10 2H10 1H11 2H11 1H12 2H12 1H13 AUD M

Total Revenue

73.5 45.8 3.6 2.7 9.1 73.1 9.4 54.4 19.3 4.2 1.4 8.9 70.9 6.2 80.0 21.5 1.8 3.2 9.6 72.4 4.1 59.9 24.2 1.5 3.1 10.0 61.6 7.0 74.7 17.2 20.4 1.8 11.8 67.8 4.4 56.5 16.3 35.3 0.9 12.6 63.9 2.5 71.0 18.3 38.8 1.4 13.7 71.9 3.2

10 20 30 40 50 60 70 80 90

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

AUD M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

55

New Zealand Half Year Comparison

Financial Results

8.3 7.4 7.5 7.2 8.0 6.4 7.8

1 2 3 4 5 6 7 8 9

1H10 2H10 1H11 2H11 1H12 2H12 1H13 NZD M

Total Revenue

5.8 2.3 5.6 1.8 0.1 5.5 2.0 0.1 5.7 1.5 5.8 2.0 0.2 5.2 0.9 0.3 5.5 2.1 0.2

1 2 3 4 5 6 7

Register Maintenance Corporate Actions Business Services

NZD M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

56

Hong Kong Half Year Comparison

Financial Results

297.0 210.3 327.6 234.1 253.9 226.8 225.0

50 100 150 200 250 300 350 400

1H10 2H10 1H11 2H11 1H12 2H12 1H13 HKD M

Total Revenue

155.1 135.3 1.0 5.6 0.0 151.5 52.2 2.3 4.2 0.0 147.9 172.0 0.6 7.1 0.0 153.8 62.4 0.4 3.0 14.5 157.7 72.5 3.3 4.4 16.0 159.3 46.2 3.8 1.3 16.1 156.0 40.3 2.9 4.5 20.8

20 40 60 80 100 120 140 160 180 200

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans

HKD M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

57

I ndia Half Year Comparison

Financial Results

1,134.2 1,060.1 1,101.7 1,074.4 998.0 1,018.5 1,451.3

200 400 600 800 1,000 1,200 1,400 1,600

1H10 2H10 1H11 2H11 1H12 2H12 1H13 I NR M

Total Revenue

301.6 61.0 771.6 235.3 26.5 798.4 278.7 135.2 687.8 290.5 69.8 714.2 330.6 7.4 660.0 356.1 29.9 632.5 292.7 18.2 1,140.5

200 400 600 800 1,000 1,200 1,400

Register Maintenance Corporate Actions Business Services

I NR M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

58

United States Half Year Comparison

Financial Results

297.1 312.2 258.3 266.4 217.7 452.5 407.2

50 100 150 200 250 300 350 400 450 500

1H10 2H10 1H11 2H11 1H12 2H12 1H13 USD M

Total Revenue

117.4 21.3 58.3 65.8 17.5 5.3 11.6 138.8 21.3 48.1 65.4 17.8 9.1 11.6 126.4 22.3 51.4 22.7 16.5 6.5 12.4 135.8 23.3 39.8 37.8 14.9 9.0 5.7 112.5 17.9 40.0 19.4 13.3 6.8 7.8 215.1 45.2 112.0 34.4 31.6 8.9 5.2 184.9 48.8 107.0 19.8 30.6 9.7 6.3

50 100 150 200 250

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

USD M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

59

Canada Half Year Comparison

Financial Results

94.3 109.5 97.7 109.0 98.6 110.2 96.9

85 90 95 100 105 110 115

1H10 2H10 1H11 2H11 1H12 2H12 1H13 CAD M

Total Revenue

38.3 12.6 32.0 1.3 7.2 1.8 1.0 45.9 14.0 36.1 1.6 8.0 1.7 2.1 37.0 13.0 36.3 1.5 7.2 1.7 1.1 48.3 12.2 36.1 1.6 8.5 1.9 0.5 37.8 12.3 36.8 1.1 7.6 2.0 1.0 46.7 11.0 38.1 2.2 8.6 2.3 1.3 34.8 10.6 38.7 1.0 7.8 2.6 1.4

10 20 30 40 50 60

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

CAD M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

60

United Kingdom & Channel I slands Half Year Comparison

Financial Results

67.4 77.7 73.5 82.0 76.1 82.5 79.8

10 20 30 40 50 60 70 80 90

1H10 2H10 1H11 2H11 1H12 2H12 1H13 GBP M

Total Revenue

24.3 9.6 19.6 1.8 9.0 1.0 2.1 26.1 3.5 20.6 2.2 21.4 1.3 2.6 20.2 7.1 17.2 1.7 24.2 1.1 1.9 19.9 5.8 23.2 2.6 27.0 1.5 1.9 19.7 2.5 20.7 1.4 28.7 1.1 2.0 21.0 2.8 19.2 2.2 33.6 1.6 2.1 20.1 2.3 20.5 0.6 33.7 1.4 1.3

5 10 15 20 25 30 35 40

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

GBP M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

61

I reland Half Year Comparison

Financial Results

4.5 5.5 5.4 4.4 5.7 4.2 4.7

1 2 3 4 5 6

1H10 2H10 1H11 2H11 1H12 2H12 1H13 EUR M

Total Revenue

3.4 0.3 0.7 0.1 3.3 1.3 0.8 0.1 3.5 1.1 0.8 0.1 3.3 0.0 1.0 0.1 3.6 1.2 0.8 0.1 3.4 0.0 0.7 0.1 3.2 0.7 0.8 0.1

1 1 2 2 3 3 4 4

Register Maintenance Corporate Actions Employee Share Plans Tech & Other Revenue

EUR M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

62

South Africa Half Year Comparison

Financial Results

123.5 125.7 127.7 132.6 130.3 138.0 142.5

110 115 120 125 130 135 140 145

1H10 2H10 1H11 2H11 1H12 2H12 1H13 RAND M

Total Revenue

111.5 9.1 2.3 0.7 113.5 9.4 2.4 0.5 109.9 6.3 3.3 0.4 7.8 118.4 2.5 2.4 0.3 9.0 117.7 2.6 2.3 0.5 7.2 123.6 3.8 2.6 0.4 7.5 128.1 3.5 2.9 0.3 7.8

20 40 60 80 100 120 140

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans

RAND M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

63

Germany Half Year Comparison

Financial Results

16.3 22.9 16.8 24.2 14.8 27.1 16.0

5 10 15 20 25 30

1H10 2H10 1H11 2H11 1H12 2H12 1H13 EUR M

Total Revenue

3.7 1.4 0.0 5.2 0.5 4.5 1.0 10.4 1.4 0.0 4.8 0.2 3.6 2.4 2.2 1.7 0.0 5.5 0.2 6.0 1.3 10.9 1.2 0.3 3.0 0.2 7.0 1.7 2.1 1.4 0.3 3.5 0.1 6.2 1.2 10.4 2.2 0.4 4.8 0.2 8.4 0.8 2.3 1.7 0.3 3.4 0.1 7.4 0.8

2 4 6 8 10 12

Register Maintenance Corporate Actions Business Services Stakeholder Relationship M'ment Employee Share Plans Communication Services Tech & Other Revenue

EUR M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

I taly Half Year Comparison

64

0.6 1.6 1.1 6.9 5.8 6.8 5.5

1 2 3 4 5 6 7 8

1H10 2H10 1H11 2H11 1H12 2H12 1H13 EUR M

Total Revenue

0.0 0.6 0.1 0.0 1.6 0.0 0.0 1.0 0.0 5.3 1.4 0.2 4.0 1.3 0.6 5.1 1.3 0.4 4.5 0.5 0.5

1 2 3 4 5 6

Register Maintenance Stakeholder Relationship M'ment Tech & Other Revenue

EUR M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

Financial Results

65

Russia Half Year Comparison

Financial Results

135.3 182.1 312.1 402.1 418.5 363.4 373.8

50 100 150 200 250 300 350 400 450

1H10 2H10 1H11 2H11 1H12 2H12 1H13 RUB M

Total Revenue

129.2 6.2 175.3 6.8 293.2 17.7 1.2 371.3 26.8 4.0 393.5 25.0 0.0 340.1 23.3 0.0 353.3 20.5 0.0

50 100 150 200 250 300 350 400 450

Register Maintenance Business Services Stakeholder Relationship M'ment

RUB M

Revenue Breakdown

1H10 2H10 1H11 2H11 1H12 2H12 1H13

66

Assumptions

Appendix 3: Assumptions

Financial Results

67

Assumptions: 1H13 Exchange Rates

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

USD 1.0000

AUD 0.9666 HKD 7.7534 NZD 1.2323 INR 54.8980 CAD 0.9997 GBP 0.6290 EUR 0.7890 RAND 8.4619 RUB 31.8425 AED 3.6728 DKK 5.8775 SEK 6.7229

Financial Results