GENERAL MEETING Executing to plan 14 November 2018 2018 ANNUAL - PowerPoint PPT Presentation

2018 ANNUAL GENERAL MEETING Executing to plan 14 November 2018

2018 ANNUAL GENERAL MEETING Chairman’s address Simon Jones 14 November 2018

Executive summary FY18 solid results, fastest rate of earnings growth since FY09 Management results in USD 1 Revenue EPS EBITDA $2,247.7m 62.10 cents $609.7m 14.1% 6.3% 12.7% FY18 Management EPS grew strongly (+14.1%) driven by good progress in Mortgage Services, increased event activity in Stakeholder Relationship Management and Class Actions, cyclical recovery in Corporate Actions, improved margin income and disciplined cost management 1 Management results are expressed in constant currency throughout this presentation unless otherwise stated. Constant currency equals FY18 results translated to USD at FY17 average exchange rates. 3

Delivering earnings growth and high returns 70 20% 18% 60 16% 50 14% US cents 12% 40 ROIC % Post-tax 10% 30 8% 6% 20 4% 10 2% 49.09 54.85 60.24 59.82 55.09 54.41 63.38 0 0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 Management EPS Post-tax ROIC Management EPS translated to USD at actual FX rates for that year Return on invested capital (ROIC) = (Mgt EBITDA less depreciation & amortisation less income tax expense)/(net debt + total equity). 4

Consistent dividend track record Full-year dividend increased by 11.1% versus pcp 45 40 35 30 25 AU cents 20 15 10 5 28 28 29 31 33 36 40 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Dividend Per Share 5 5

Generating sustained returns for shareholders 6

Corporate Responsibility Community Globally, Computershare is dedicated to supporting initiatives which help alleviate poverty through our community giving scheme, Change A Life. This important and long-running programme has a focus on sustainability by investing 80% of donations in global projects that provide long-term solutions to the communities our employees vote to work with. The remaining 20% of donations go to local projects via established charities, chosen by our local employees. Computershare matches all employee payroll donations. 7 7

Corporate Responsibility Supporting local charities around the CPU world 8

Corporate Responsibility Sustainability 9

Board succession – orderly transition › Farewell and thanks to Penny Maclagan › Welcome Lisa Gay, Abi Cleland and and Les Owen Paul Reynolds Penny Maclagan Les Owen Lisa Gay Abi Cleland Paul Reynolds 10

2018 ANNUAL GENERAL MEETING CEO’s address Stuart Irving 14 November 2018

Executing strategies to drive performance and enhanced earnings 12

Growth: Mortgage Services Delivering to plan FY18 - USA USA Revenue Other Service Fees 320 28% Base 300 USD millions 306.1 Servicing Fees 280 $306.1m 56% 260 Servicing 257.2 240 Related Fees 16% 220 FY17 FY18 UK Revenue and EBITDA – FY18 to FY23 UK Revenue 260 255 Book expected to USD millions turn to positive 254.1 250 organic growth by FY20 / FY21 245 240 239.7 Note - Chart not to scale 235 230 UKAR Revenue Non UKAR Revenue EBITDA FY17 FY18 13

Growth: Employee Share Plans Equatex acquisition - laying the foundations for future growth Complementary High quality customer Enhancing capabilities Synergies affirmed geographic fit base 14

Profitability: Structural cost out programs progressing well Stages 1, 2 and 3 total gross savings of $125m - $155m affirmed 15

Profitability: Margin income 2H18 margin income highlights leverage to rising interest rates 18.0 140.0 17.3 16.0 16.8 16.6 16.6 16.3 15.2 15.1 15.0 14.0 120.0 14.4 14.0 Sharp 12.0 improvement Average Client Balances for period USD million for period USD billion from cyclical 100.0 105.8 Margin Income lows 10.0 99.9 89.4 80.0 86.8 86.4 8.0 79.6 79.0 74.3 6.0 69.6 60.0 66.6 4.0 40.0 2.0 0.0 20.0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Average balances Margin Income (USD m) Note: Margin income and balances translated at actual FX rates for the period 16

Global Registry returns to organic growth High quality revenues 400 350 300 250 USD millions 200 150 100 50 329.7 368.2 330.6 379.8 0 1H17 2H17 1H18* 2H18* Register Maintenance *Translated at FY17 avg fx rates. 17

Capital management Free cash flow funds growth, debt reduction and enhanced returns Cash generative business model – Self-fund growth investments – Capital light, high returns – MSR purchases $89.4m ROIC 18.2% Post tax Free Cash Flow $379.2m Equatex acquisition – Full-year dividend 40 AU cents per Debt reduction – share - accelerates Share Plans growth down $40.2m, 1.33x leverage ratio engine 40-60% payout ratio policy 18

Trading update and guidance Guidance › At this early stage of the year, we confidently affirm our FY19 Management EPS guidance, to increase by around +10% on FY18 in constant currency Commentary › Encouraging start to FY19 trading with growth in US Mortgage Services and Employee Share Plans, profitability in Registry and improving Margin Income › Guidance includes a contribution from Equatex for seven months of the year (completed on Monday 12 November) and the sale of Karvy in 1H19 › An updated guidance statement will be provided with the 1HFY19 results release in February 2019 › All other guidance assumptions are as per page 4 of the 15 August 2018 Results presentation 19

Summary Delivering multi-year earnings growth Laying the foundations for Purposefully designed Growth, Optionality converting into sustained growth, extending our Profitability and Capital profitability; margin income, competitive moats and executing Management strategies corporate actions and other event- our strategic priorities delivering results based activity across CPU Strong free cash flow self-funds Transformation to a simpler, Guidance: Confidently affirm FY19 growth engines, strategic transparent and disciplined CPU Management EPS to increase by investments and enhanced driving multi-year sustained around 10% on FY18 shareholder returns earnings growth 20