Computershare Limited · ASX:CPU
Computershare — Investor Presentation (March 2007)
43 slides from Computershare's investor presentation, Mar 16, 2007
Slide 1: Market Announcement: Investor Briefing Materials
Computershare Limited ABN 71 005 485 825 Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Australia PO Box 103 Abbotsford Victoria 3067 Australia Telephone 61 3 9415 5000 Facsimile 61 3 9473 2500 MARKET ANNOUNCEMENT www.computershare.com Friday, 16 March 2007 Date: To: ASX MARKET ANNOUNCEME
Slide 2: Computershare Investor Presentation 2007
COMPUTERSHARE INVESTOR PRESENTATION 2007 16th March 2007
Slide 3: Stuart Crosby, Chief Executive Officer
COMPUTERSHARE INVESTOR PRESENTATION Stuart Crosby Chief Executive Officer 16th March 2007
Slide 4: EMEA
COMPUTERSHARE EMEA INVESTOR PRESENTATION Chris Morris Managing Director / EMEA 16th March 2007
Slide 5: Computershare - EMEA
COMPUTERSHARE - EMEA UK: .. . . London, Edinburgh, Bristol, Channel Islands Ireland: Dublin . Germany: Munich Russia: Moscow Italy: Rome -Investor Services -Communication Services -Plans South Africa: Johannesburg -Pepper (CRM) -Corporate Proxy -Investor Services -Plans -Custodial Services 4
Slide 6: Computershare - UK
COMPUTERSHARE - UK › Evaluated all clients profitability and increased fees or terminated contracts › Shared services lowest of all CPU locations › Marketing and PR excellent, still no sales staff and we are winning business › Financial reporting and control finally up to scratch › Service levels im
Slide 7: Computershare - UK
COMPUTERSHARE - UK › Hired a top senior management team, by end of the year the business will be run by the Poms › Restructured business to a model more suited to the UK environment › Totally restructured operations, more flexible working conditions. Aim to have 50% moved to night shift › Winning of
Slide 8: EMEA: Ireland, South Africa, Italy, Spain and Portugal
COMPUTERSHARE - EMEA Ireland › 90% market share, only competitor - Capita › No growth but improving margins South Africa › A difficult market but managed to retain over 95% market share › A significant improvement in service levels Italy, Spain and Portugal › Proxy and Stock Identification work › Go
Slide 9: EMEA: Germany, Austria, Switzerland, Russia
COMPUTERSHARE - EMEA Germany, Austria, Switzerland › Main business lines - Plans, Registry and AGM › Plans market currently relatively small, but government initiatives underway › Standard Life - 200,000 German policy holders › 80% of AGM market › Purchased another print business Russia › Now have 6
Slide 10: EMEA Business Challenges
COMPUTERSHARE – EMEA BUSINESS CHALLENGES › Maintain service standards › Expansion in Europe › Increase commercial work in print/mail › Develop better relationships with market participants › Get to number 1 in registry in the UK, 1 year left to meet our goal › Make more money in EMEA than the US so
Slide 11: EMEA Business Opportunities
COMPUTERSHARE – EMEA BUSINESS OPPORTUNITIES › Sale of Lloyds Registry › DI cross listings in the UK from Russia and the US › We are now established as a credible provider of BPO services to Government with Corgi, Gilts and DPS which should create further opportunities.
Slide 12: Australasia
COMPUTERSHARE AUSTRALASIA INVESTOR PRESENTATION Mark Davis Group Regional Director - Australasia 16 March 2007
Slide 13: Regional Overview
REGIONAL OVERVIEW › 9 Sites › Perth (2) › Adelaide › Melbourne (2) › Sydney (2) › Brisbane › Auckland › 5 Business lines › Investor Services › Communication Services › Plan Managers › Corporate Proxy › Fund Services 12
Slide 14: Investor Services Australia
INVESTOR SERVICES AUSTRALIA › Continues to be market leader with approximately 60% market share › Capitalised well on strong market conditions › Key enterprise (but not the only one) for cross selling group services › Positive pricing outcomes being achieved Challenges and Opportunities › Private eq
Slide 15: Investor Services New Zealand
INVESTOR SERVICES NEW ZEALAND › Mature market with approximately 85% market share › Succession planning has been key issue but has been handled effectively Challenges and Opportunities › Bringing new innovation from broader CPU world to market › Preserving pre-eminent market position
Slide 16: Communication Services
COMMUNICATION SERVICES › Rebranded › Efficiency benefits from state of the art new facility in Port Melbourne › Settled and strong management team › Capitalising well off the registry market but meeting commercial business targets Challenges and Opportunities › On-line annual report legislation – mo
Slide 17: Plan Managers
PLAN MANAGERS › Market leader in Australia › Less opportunity in New Zealand due to absence of regulatory incentives › Organic growth over last two years has been robust but still small in overall context Challenges and Opportunities › Good organic growth opportunities within CIS book remain › Citib
Slide 18: Corporate Proxy
CORPORATE PROXY › Market leader in Australia having advised on over $160 billion of M&A transactions over the last few years › Premium offering recognised in the market and we are winning all the big jobs eg. Cemex, Qantas, Promina, Flight Centre Challenges and Opportunities › Do not call register l
Slide 19: Fund Services
FUND SERVICES › Year of integration completed › Market has shown us that there exists significant opportunity and already won circa $1m annuity client Challenges and Opportunities › Automation – move from manual to STP › Old legacy systems causing problems in industry › Getting system strategy right
Slide 20: Asia
COMPUTERSHARE ASIA INVESTOR PRESENTATION James Wong Head of Asia 16th March 2007
Slide 21: Computershare - Asia
COMPUTERSHARE – ASIA Japan: China: Tokyo Beijing -Analytics - Representative Office -Corporate Proxy Singapore Hong Kong: Wanchai, -Pepper CRM Kwun Tong Philippines: -Investor Services Manila -Plans -Analytics back-end data preparation and capture India: Hyderabad, Mumbai, Bangalore and 100 + others
Slide 22: Hong Kong
COMPUTERSHARE – ASIA HONG KONG › Main business line - Investor Services › Seeing some results with expansion of Plans business into Hong Kong and China › Focusing on product extension (eIPO and results web hosting) › Playing an important role in local market infrastructure development in both Hong K
Slide 23: China
COMPUTERSHARE – ASIA CHINA › Setting up a presence › Now securing registration as a wholly-owned Foreign Enterprise › To provide onshore customer service and regulatory liaison › Excellent relationship with regulators › Exploring onshore revenue stream in addition to Plans › Help secure Hong Kong’s
Slide 24: India
COMPUTERSHARE – ASIA INDIA › 50:50 JV with Karvy Group › Biggest player in India › Main business lines - Investor Services and Fund Services › Highly competitive but growing market especially in Fund Services
Slide 25: Japan
COMPUTERSHARE – ASIA JAPAN › 50:50 JV with Mitsubishi UFJ Trust Bank › Main business lines - Analytics and Corporate Proxy › Excellent start to new business since November 2005 › Exploring possibilities to extend the scope of the joint venture
Slide 26: Asia Business Challenges and Opportunities
COMPUTERSHARE – ASIA BUSINESS CHALLENGES AND OPPORTUNITIES › Strengthening our position in Hong Kong, and catching opportunities in China, Japan and India › Product and service extension into the investor space › Integrating our services into market infrastructure to become a utility
Slide 27: US
COMPUTERSHARE US INVESTOR PRESENTATION Steven Rothbloom President & CEO North America 16th March 2007
Slide 28: Computershare US
COMPUTERSHARE US Chicago Burr Ridge, IL Cleveland e— Canton, MA Denver (Golden) 7) j Shelton, CT San Francisco ——e New York Hauppauge, NY Los Angeles (Glendale) ——e Jersey City, NJ East Rutherford, NJ Dallas iano ae Edison, NJ Atlanta Houston (The Woodlands) 27 €omputershare
Slide 29: Lines of Business
LINES OF BUSINESS › Investor Services › Corporate Actions › Fund Services › Corporate Proxy Solicitation › Communication Services › Employee Share Plans › Other
Slide 30: What I Said Last Year and Where We Are Today
WHAT I SAID LAST YEAR AND WHERE WE ARE AT TODAY › Then: EquiServe migration was › Then: Fund Services triple the 50% complete year before, unprecedented › Now: 99.999% complete › Now: Well, we made it happen again › Then: Retention so far looked good › Then: Georgeson Proxy › Now: Still great at 98%
Slide 31: Highlights
HIGHLIGHTS › Financial results – Tom is in the room, but you can see I’m smiling › US transfer agent business › Largest market share of top-tier clients › S&P – 36% › Fortune 500 – 29% › Dow 30 – 63% › Client retention through two integrations – EquiServe and SunTrust acquisitions – 98% › Won 5 spin
Slide 32: Highlights: Corporate Actions / M&A
HIGHLIGHTS Corporate Actions / M&A › Largest corporate actions of the year › AT&T/BellSouth merger › Verizon spin › LSI Logic acquisition of Agere – shareholder approval expected March 29 › Small shareholder and PostMerger Cleanup™ › Sears- PostMerger CleanUp ™ › Federate Department Stores – PostMer
Slide 33: Highlights: Fund Services
HIGHLIGHTS Fund Services › Second straight year as top in the industry › Hired to handle more than 80% of the major engagements in market › Major wins included: › Merrill Lynch sale of mutual fund business to BlackRock – Fund Services solicitation for both sides of transaction › Legg Mason – second-
Slide 34: Highlights: Georgeson Corporate Proxy Solicitation
HIGHLIGHTS › Georgeson corporate proxy solicitation › Maintained top market share in the industry › Solicitations for M&A transactions: › 21.4% increase in deal activity compared to last year › Represented more than a third of companies in the S&P 500 › Cross-sell synergies from transfer agency busi
Slide 35: Highlights: Communication Services, Plan Managers
HIGHLIGHTS Communication Services › Continued expansion of commercial print/mail business for statement and check printing › Included large statement printing contracts for: › Eastern Bank › Dime Savings Bank › Centra Credit Union Plan Managers › 20 new clients › Includes multiple transfer agent cli
Slide 36: Challenges
CHALLENGES › Shift from an integration focus to a quality/service enhancements mode › Continue to compete effectively and profitably with broker firms in the equity compensation marketplace › Continue to generate value and cross-sell synergies from the non-annuity portion of our business › Remain to
Slide 37: Opportunities
OPPORTUNITIES › Complete rationalization and maximize utilization of infrastructure › Take advantage of and maximize opportunities from more stringent SEC rules › Capitalize on increased market activity in IPOs and M&A › Expand on the synergies between our transfer agent/M&A/proxy solicitation servi
Slide 38: Canada
COMPUTERSHARE CANADA INVESTOR PRESENTATION Wayne Newling President and Chief Executive Officer - Canada 16th March 2007
Slide 39: Computershare - Canada
COMPUTERSHARE - CANADA Winnipeg - Toronto Richmond Hill, ON Calgary ig Montreal Vancouver ————~e ——__ | ln 38 €omputershare
Slide 40: Registry
REGISTRY › Western Canada 75% Market Share › Central Canada 70% Market Share › Eastern Canada 80% Market Share › Competitors > CIBC Mellon > Three regional players › Sensible pricing in market › Extremely buoyant Corporate Actions market Key Focus Going Forward › Continued acquisition strategy acros
Slide 41: Corporate Trust
CORPORATE TRUST › 70% Market Share across Canadian market › Strong predictable earnings and margin › Continuing to show growth year over year › Strong regional management in place › Continued integration of recent acquisitions › New Corporate Trust recordkeeping platform in place Key Focus Going For
Slide 42: Communication Services
COMPUTERSHARE COMMUNICATION SERVICES › Successfully winning “commercial business” > Bank of Nova Scotia › Leveraging other Computershare relationships to gain CCS business › Continuing to drive efficiency and cost reduction across all Computershare business lines > Scannable Forms/EDC > Generic cert
Slide 43: Investor Presentation
COMPUTERSHARE INVESTOR PRESENTATION 2007 16th March 2007