computershare agm presentation asx.ppt - chairman`s address an… · attached is the chairman’s...

MA

RK

ET A

NN

OU

NC

EMEN

T

Computershare LimitedABN 71 005 485 825

Yarra Falls, 452 Johnston Street AbbotsfordVictoria 3067 Australia

PO Box 103 AbbotsfordVictoria 3067 Australia

Telephone 61 3 9415 5000Facsimile 61 3 9473 2500www.computershare.com

MARKET ANNOUNCEMENT

Date: 11th November 2009

To: Australian Securities Exchange

Subject: Computershare Limited Annual General Meeting

Attached is the Chairman’s address and CEO’s presentation being delivered to the Annual General Meeting at 10.00am today, 11th November 2009. For further information contact: Mr Darren Murphy Head of Treasury and Investor Relations Ph +61-3-9415-5102 [email protected] About Computershare Limited (CPU)

Computershare (ASX:CPU) is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialise in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services.

Founded in 1978, Computershare is renowned for its expertise in data management, high volume transaction processing, payments and stakeholder engagement. Many of the world’s leading organisations use these core competencies to help maximise the value of relationships with their investors, employees, creditors, members and customers.

Computershare is represented in all major financial markets and has over 10,000 employees worldwide.

For more information, visit www.computershare.com

Annual General Meeting ofAnnual General Meeting ofComputershare Limited 11 November 2009

Annual General Meeting

Chris MorrisE ti Ch iExecutive Chairman

Introduction

11 November 2009

Financial Performance Indicators

* management adjusted results

3. Annual General Meeting of Computershare Limited.

CPU share price performance Jul 2008 – Oct 2009Jul 2008 – Oct 2009

ASX50 versus CPU

CPU: +20.6%$11.00

$12.00

ASX 50 7 3%$9.00

$10.00

ASX 50: -7.3%

$7.00

$8.00

$5.00

$6.00

Computershare entered the ASX50 in September 2009

$

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Computershare entered the ASX50 in September 2009


CPU share price performanceJan 2006 – Oct 2009Jan 2006 – Oct 2009

ASX200 versus CPU

$11.00

$12.00

CPU: +57.9%

$8.00

$9.00

$10.00CPU: +57.9%

$6.00

$7.00

$

ASX 200: +2%

ASX 200 Industrials: -9.1%

$3.00

$4.00

$5.00

Jan-

06

Apr-

06

Jul-0

6

Oct

-06

Jan-

07

Apr-

07

Jul-0

7

Oct

-07

Jan-

08

Apr-

08

Jul-0

8

Oct

-08

Jan-

09

Apr-

09

Jul-0

9

Oct

-09


CORPORATE RESPONSIBILITY ‘Change a Life’Change a Life

Project spend to date:

Ethiopian Eye Clinic - Ethiopia 95,000

Phongsaly Health and Livehood - Laos 298,958

Highland Children's Education Project Cambodia 250 000Highland Children s Education Project - Cambodia 250,000

Chad Farmer Regeneration Project - Chad 572,271

Sunrise Children's Village - Cambodia 590,173g ,

Victims of Crime - South Africa 827,840

Cash at Bank 1,600,000

Total Raised 4,234,242


CORPORATE RESPONSIBILITY ‘Change a Life’Change a Life

Sunrise Children’s Village Update

Main project at present is supporting the b ildi f thi d hbuilding of third orphanage

African Cycle Event September 2009

Five day cycle for the Mike Thomson Change a Life Trust


Annual General MeetingAnnual General Meeting

St t C bStuart CrosbyChief Executive OfficerChief Executive Officer

11 November 2009

2009 IN REVIEW Revenue and Earnings (USD)Revenue and Earnings (USD)

› Total operating revenues – down 4% to $1,511.6 millionTotal operating revenues down 4% to $1,511.6 million

› Management EBITDA – down 1% to $475.5 million

› Operating cash flows – down marginally at $341.5 million

› Management net profit after OEI – flat at $289.5 million

› Management EPS – up marginally at 52.11 centsManagement EPS up marginally at 52.11 cents


2009 IN REVIEW Operating MarginOperating Margin

› Total operating revenues -Total operating revenues down 4% to $1,511.6 million

› Operating costs - down 6%› Operating costs down 6% to $1,035.9 million

› Management EBITDA margin› Management EBITDA margin -maintained over 30%


* Management adjusted

2009 IN REVIEW Dividends (AUD)Dividends (AUD)

› Interim dividend –Interim dividend 11 cents 40% franked

› Final dividend –› Final dividend 11 cents 50% franked


2009 IN REVIEW The story behind the numbersThe story behind the numbers

› A flat result is a great outcome in the toughest market forA flat result is a great outcome in the toughest market for decades (globally, if not in Australia)

› Corporate actions revenues held up well (increasing slightly on› Corporate actions revenues held up well (increasing slightly on FY 09)

› Strong cost management helped close the revenue gap:› Strong cost management helped close the revenue gap:

› Continued delivery of process efficiencies, mostly from technology

› Dynamic workforce management delivered savings as volumes decreased

› “Never waste a crisis” – restructures, branch closures, salary freezes


2009 IN REVIEW The story behind the numbersThe story behind the numbers

› Strong contributions from recent acquisitions - notablyStrong contributions from recent acquisitions notably Computershare Voucher Services (formerly Busybees) and KCC (bankruptcy and class action administration) also helped

› Margin income held up in the short term better than expected as quality banks chased (and paid for) liquidity – but this won’t be sustained

› Currency volatility knocks reported results about but does not affect underlying business performance (which is what we manage)


COMPUTERSHARE TODAY Business As UsualBusiness As Usual

› Cost management continues to be a priority – eg, FY 2009 payCost management continues to be a priority eg, FY 2009 pay freeze across the board

› But not cutting costs at the expense of services levels -› But not cutting costs at the expense of services levels evidenced by ever stronger third party service survey outcomes

› And continuing to invest in service and product improvements› And continuing to invest in service and product improvements –eg, custodian portal in Australia

› All of which combine to support excellent client retention› All of which combine to support excellent client retention


COMPUTERSHARE TODAY Organic GrowthOrganic Growth

› Strong operations also support great sales outcomes, eg:Strong operations also support great sales outcomes, eg:

› USA – Frontier (registry), CIT (bankruptcy), American Funds (mutual fund proxy), Chemical Bank (communications services)(mutual fund proxy), Chemical Bank (communications services)

› Canada – Ontario Financing Authority (registry)

› UK – Schroders (registry), Resolution (takeover), ASDA (plans)

› Australia – Myer (IPO), CBA (inbound communication services)

› Asia – HK IPOs (since 1 July, we have handled 15 out of 26 IPOs, and over 88% of both applications and funds raised), many PRC l (f i li i )plans (foreign listings)


COMPUTERSHARE TODAY Balance SheetBalance Sheet

› Our strong balance sheet has let us concentrate on the businessOur strong balance sheet has let us concentrate on the business

› We are one of only a handful of companies of our size not to access equity markets during FY09access equity markets during FY09

› Our debt levels have remained comfortably below 2x EBITDA

› Half our debt is institutional fixed term

› The other half is term bank facilities:

› USD 200M 12 month facility surrendered mid year (not currently needed)

› USD 550M 3 year facility due to roll October 2010 – early stages of renegotiation


COMPUTERSHARE TODAY CorporateCorporate

› Our own M&A activity continues – deals since last AGM include:Our own M&A activity continues deals since last AGM include:

› KCC (up to USD 145M) – strongly counter-cyclical and great market shareshare

› HBOS Plans (up to GBP 40M) – takes us to a leading position in the UK Plans market and, more importantly, to a dominant position in , p y, pthe market for truly global plans

› National City (USD 16.2M+) – US TA bolt-ony ( )

› I-nvestor (USD 12.4M) – first presence in Denmark and Sweden


COMPUTERSHARE TODAY CorporateCorporate

› As always, we continue to monitor a range of M&A and otherAs always, we continue to monitor a range of M&A and other investment targets and opportunities: small, medium and large

› We assess opportunities against the same criteria we’ve always› We assess opportunities against the same criteria we ve always used:

› Will we be any good at it?› Will we be any good at it?

› Does it add value to us and/or do we add value to it?

› Is it sensibly priced?

› Property – we may move from operating leases to finance leases p y y p gin a few of the premises we occupy, allowing us to take advantage of attractive valuations


LOOKING FORWARD QualitativeQualitative

› We continue to look for expansion (organically and by acquisition) in e co ue o oo o e pa s o (o ga ca y a d by acqu s o )market-related areas as well as in less or counter cyclical areas

› India, Russia and China continue to represent strong growth potential, p g g p

› Our cross border offering wins us a very high share of clients with global ambitions – 8 of 10 names mentioned for the Shanghai g ginternational board are our clients

› We increasingly differentiate ourselves by delivering quality service and product innovation – especially potent now as competitors cut deep (our IT spend remains ~10% of revenue)

› Private equity owners of competitors seem to be looking to cash out over next 12 to 24 months


LOOKING FORWARD QuantitativeQuantitative

› We said in August 2009 that we expected USD managementWe said in August 2009 that we expected USD management earnings per share for financial year 2010 to be similar to financial year 2009

› So far this year our profit is tracking slightly ahead of 2009, and we are increasingly confident of exceeding last year’s

fperformance, assuming equity, interest rate and FX market conditions remain broadly consistent with current levels for the rest of the financial yearrest of the financial year


OVERALL STRATEGY UnchangedUnchanged

› Drive operations quality and efficiency through measurement,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 ourwhere we can add value and enhance returns for our shareholders


CONTINUED DELIVERY AGAINST STRATEGY

› Delivery on the first 2 limbs (cost and revenue) has been a keyDelivery on the first 2 limbs (cost and revenue) has been a key factor in protecting our profits in the face of the GFC:

› operational productivity continues to improve across the globe

› revenue initiatives, especially in business as usual, continue to deliver (but mostly filling holes rather than growing)

l ll d d› operational excellence puts us on top in independent service surveys everywhere they’re offered, protecting our pricing power and strengthening our client retention

› We continue to identify and execute on value accretive acquisitions – eg, KCC, HBOS, National City, I-nvestor


Annual General MeetingAnnual General Meeting

Ch i M iChris MorrisExecutive Chairman

QuestionsQ

computershare agm presentation asx.ppt - chairman`s address an… · attached is the chairman’s...

Documents