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Computershare LimitedFull Year Results 2009 Presentation
Stuart CrosbyPeter BarkerPeter Barker
12 August 2009
Introduction FinancialResults
CEO’s ReportResults
2
Introduction
S C bStuart Crosby
President & CEO
3
IntroductionResults HighlightsManagement Adjusted ResultsManagement Adjusted Results
FY09 FY08 FY09 versus FY08 FY09 at FY08 exchange
FY09 at FY08 rates versus FY08exchange
rates rates versus FY08
Earnings per Share (Post OEI) 52.11 cents 51.61 cents Up 1% 59.65 cents Up 16%
Total Operating Revenues $1,511.6m $1,582.5m Down 4% $1,680.1m Up 6%
Operating Expenses $1,035.9m $1,106.0m Down 6% $1,143.6m Up 3%
Earnings before Interest, Tax, Depreciation
and Amortisation (EBITDA)
$475.5m $479.2m Down 1% $536.5m Up 12%
and Amortisation (EBITDA)
EBITDA margin 31.5% 30.3% + 120 bps 32.0% + 170 bps
Net Profit after OEI $289.5m $290.4m Flat $331.4m Up 14%
Days Sales Outstanding (DSO) 40 days 44 days Down 4 days
Cash Flow from Operations $341.5m $347.3m Down 2%
Free Cash Flow $318.6m $304.5m Up 5%
Capital Expenditure $22.9m $42.8m Down 46%
N D b EBITDA i 1 67 i 1 64 i 0 03 iNet Debt to EBITDA ratio 1.67 times 1.64 times +0.03 times
Final Dividend AU11 cents AU11 cents Flat
Dividend franking amount 50% 30% Up by 20%
4
Note: all results are in USD except for dividend
Computershare Strengths Introduction
› Strong balance sheet, low gearing and continued robust cash generation› More than 70% of revenue recurring in nature› Revenues, cash-flows and margins holding up reasonably well despite the
challenging environment› Diversification into counter and non cyclical businesses strengthen revenue and
profit base› Computershare’s:› Computershare s:
› Globally diversified footprint (17 countries including China, India, Russia)› Unique cross-border transaction capabilities › Continued investment in R&D and product development› Ongoing operational efficiencies and significant cost reductions› Strong balance sheet and cash flow generation› Strong balance sheet and cash flow generation› Demonstrated ability to acquire and integrate businesses
Leave us well positioned for an eventual up turn in the global economy
5
Outlook Introduction
› We anticipate USD management earnings per share for financial year 2010 to p g g p ybe similar to 2009
› Our outlook assumes that equity, interest rate and FX market conditions remain broadly consistent with current levels for the financial yearremain broadly consistent with current levels for the financial year
6
Introduction Financial CEO’s ReportResults
p
7
FinancialResults
kPeter Barker
CFO
8
Drivers Behind FY2009 Financial PerformanceFinancialResults
› Corporate action environment, shift from M&A and IPO’s to secondary capital p , y praisings
› Significant ongoing cost reductions and operating efficiencies› Continued investments in and growing importance of counter and non cyclical› Continued investments in, and growing importance of, counter and non cyclical
businesses› Interest rate levels and client balances› Market softness in ‘traditional’ transfer agent and associated businesses› Foreign exchange
9
FinancialResults
Group Financial Performance – US$m
VarianceFY09 FY08
Variance FY09 to
FY08
Sales Revenue 1,494.0 1,564.0 (4%)
Interest & Other Income 17.6 18.6 (5%)
Total Revenue 1,511.6 1,582.5 (4%)
Operating Costs 1,035.9 1,106.0 (6%)
Share of Net (Profit)/Loss of Associates 0.2 (2.7)
Management EBITDA 475.5 479.2 (1%)
Management Adjustments - Revenue/(Expense) (31.6) (7.3)
Reported EBITDA 443.9 471.9 (6%)
Statutory NPAT 252.5 282.0 (10%)
Management NPAT 289.5 290.4 (0%)
Management EPS 52.11 51.61 1%
Statutory EPS 46.02 50.12 (8%)
10
Analysis of Management EPS Half Year Comparison
FinancialResults
US cents
Half Year Comparison
25
30
20
10
15
0
5
0
1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09
HY 6.60 9.52 8.82 13.92 17.86 18.83 27.36 24.25 26.14 25.97FY 16 12 22 74 36 68 51 61 52 11
11
FY 16.12 22.74 36.68 51.61 52.11
FinancialResults
FY09 Management NPAT Analysis
1 EBITDA - EMEA
$USm
380
400
2 OEI
3 Depn & Amort
65.5 3.0 1.95.7
7.9360
380
p
4 Interest26.7320
340
5 Tax
6 EBITDA - AP
290.4
42.5
289.5
280
300
7 EBITDA - NA260
FY08 NPAT 1 2 3 4 5 6 7 FY09 NPAT
12
FinancialResults
Free Cash Flows
Operating cash flow vs capital e pendit e
240
$USmcapital expenditure
183.5
206.2
159.9
181.6180
210
117.8
137.5 141.1
120
150
36.7
73.1 65.8
18 8 24 030
60
90
11.8 11.9 14.6 10.4 7.817.9 18.8 24.0
12.6 10.3
0
30
1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09
Operating Cash Flows Capital Expenditure
13
p g p p
FinancialResults
Revenue & EBITDAHalf Year ComparisonsHalf Year Comparisons
694.0724.4
788.2 794.3 783.0
728.7
300800
EBITDA$USm
Revenue$USm
456.0
588.1626.7
694.0
188.7
257.4
221.8
238.6
236.9
200
250
500
600
700
354.5
93.199.7
140.4
181.7
100
150
300
400
65.4
0
50
0
100
200
1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09Revenue Management EBITDA
14
FinancialResults
Management EBITDA MarginHalf Year ComparisonHalf Year Comparison
32.7%
30.5%
32.5%35%
EBITDA margin
22 4%
27.2%
27.9%
25%
30%
18.5%20.4%
22.4% 25.1%
20%
17.0%15%
10%
1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09
15
FinancialResults
Revenue Breakdown – US$m
FY09 FY08Variance FY09 to
FY08
Register Maintenance 736.2 817.6 (10%)
Corporate Actions 313.4 303.6 3%
Fund Services 83.9 91.3 (8%)( )
Stakeholder Relationship Mgt 73.9 89.0 (17%)
Employee Share Plans 98.4 119.0 (17%)
Communication Services 146 6 105 3 39%Communication Services 146.6 105.3 39%
Technology & Other Revenue 59.3 56.8 4%
Total Revenue 1 511 6 1 582 5 (4%)Total Revenue 1,511.6 1,582.5 (4%)
Note – Included in the revenue results are $170.3m of Margin Income (FY08: $217.5m) and $242.4m of Recoverable Income (FY08: $255.8m)
16
FY10 Regional Analysis & Revenue Breakdown(effective 1H FY10 will include comparatives)(effective 1H FY10 – will include comparatives)
Regional Reporting
Current Structure Going Forward
North AmericaAsia Pacific
USACanada
Europe, Middle East & Africa Australia & NZAsiaEurope, Middle East & Africa
Revenue Segmentse e ue Seg e ts
Current Structure Going Forward
Register Maintenance Register MaintenanceCorporate Actions Corporate ActionsFund Services Business Services*Stakeholder Relationship Management Stakeholder Relationship Management**Employee Share Plans Employee Share PlansCommunication Services Communication ServicesTechnology & Other Technology & OtherTechnology & Other Technology & Other
* Business Services – KCC, Administar, IML events (from Corporate Actions), Computershare Voucher Services & Deposit Protection Scheme (from Registry Maintenance)
17
** Fund Services now incorporated in Stakeholder Relationship Management
FinancialResults
Margin Income Analysis
Average market interest rates:UK 4.55% 4.49% 4.78% 5.30% 5.71% 5.19% 4.16% 0.82%US 3.70% 4.66% 5.25% 5.25% 4.85% 2.67% 1.53% 0.27%Canada 2.79% 3.77% 4.25% 4.25% 4.45% 3.51% 2.58% 0.64%Australia 5.50% 5.58% 6.03% 6.25% 6.52% 7.12% 6.23% 3.35%
Average balances (US$bn)* 6 4 6 4 6 4 7 0 8 7 8 7 7 2 6 4
18
*Note: some balances attract no interest or a set margin for Computershare
(US$bn) 6.4 6.4 6.4 7.0 8.7 8.7 7.2 6.4
FinancialResults
FY09 Revenue & EBITDARegional AnalysisRegional Analysis
Total Revenue EBITDATotal Revenue breakdown
EBITDAbreakdown
26%
17%
43%46%
40%
43%
28%
Asia Pacific EMEA North America Asia Pacific EMEA North America
19
FinancialResults
Operating Costs Half Year Comparisons
$USm
Half Year Comparisons
137 4500
600
$
144.5 133.2 138.9 139.7 137.0 147.4 137.4 141.2
400
345.0 355.2 367.4 404.9 395.4 426.2 406.7 350.6200
300
100
0
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09
l f l ( )
20
Operating Costs excl. COS Cost of Sales (COS)
FinancialResults
Technology CostsContinued Investment to Maintain Strategic AdvantageContinued Investment to Maintain Strategic Advantage
$USm
6.5 6.7
9.6%9.4%
10.1% 10.3%10.0%
160
180
$USm
41.6
41.3 38.23.6
6.5
6.0%
8.0%
100
120
140
21.4
40.6
44.6 45.350.0
4.0%
0
60
80
100
40.5 43.364.8 63.6
0.0%
2.0%
0
20
40
FY06 FY07 FY08 FY09FY06 FY07 FY08 FY09
Development Infrastructure Maintenance Admin Technology costs as a % of sales revenue
21
FinancialResults
Balance Sheet as at 30 June 2009
Variance Jun-09 Jun-08US$'000s US$'000s
Jun-09 to Jun-08
Current Assets 537,013 516,129 4%
Non Current Assets 1,960,523 1,721,889 14%
Total Assets 2,497,537 2,238,018 12%
Current Liabilities 414,934 436,912 (5%)
Non Current Liabilities 1,181,434 1,030,910 15%
Total Liabilities 1,596,369 1,467,822 9%
T t l E it 901 168 770 196 17%Total Equity 901,168 770,196 17%
22
FinancialResults
Key Financial Ratios
EBITDA Interest Coverage Net Financial Indebtedness to EBITDA
12.1
8.7
11.9 11.513.3
10
12
14
timesEBITDA Interest Coverage
2.482.5
3.0
times
2
4
6
8 1.68
0.94
1.64 1.67
0.5
1.0
1.5
2.0
0
FY05 FY06 FY07 FY08 FY09
0.0
FY05 FY06 FY07 FY08 FY09
US$m US$m Jun-09 to Jun-08
Cash 180.4 124.2 45%
Interest Bearing Liabilities * 974.3 910.9 7%
Net Debt 793 9 786 7 1%Net Debt 793.9 786.7 1%
Management EBITDA 475.5 479.2 (1%)
Net Debt to Management EBITDA 1.67 1.64 2%
23
* Average Tenor of drawn debt at 30 June 2009 was 4.2 years.
Debt Facility Maturity Profile FinancialResults
Maturity Dates Debt Drawn CommittedDebt Facilities
Bank Debt
F ilit
Private Placement
F ilit
700US$m
Facility Facility FY10 FY11 Oct-10 390.6m 550.0m 550.0m
Mar-11 50.0m 50.0m 50.0m FY12 Mar-12 123.0m 123.0m 123.0m FY13 FY14
440 6
600.0
500
600
700 FY15 Mar-15 124.5m 124.5m 124.5m FY16 FY17 Mar-17 21.0m 21.0m 21.0m FY18 FY19 Jul-18 235.0m 235.0m 235.0m Total $944.1m* $1,103.5m $550.0m $553.5m 440.6
235.0 235.0300
400
123.0 124.5
21.0
123.0 124.5
21.0
0
100
200
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Debt drawn Committed debt facility
24
$200M bank club facility, expiring Oct-09, cancelled by CPU 30-Jun-09
FinancialResults
Capital Expenditure
Capital Expenditure Vs. Depreciation$USm$USm
2.625
2.53.0
7 9
4.8
0.8
0.60.6
15
20
4.1
2.2
1.6
1.91.2
2.2
3.8
7.9
3.00.7
0.5
1.1
0.5
0.210
7.6 5.0
12.1
8.8
13.9
7.2 8.2
0.9
2.3
1.93.8
1.45
2.90
1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09
Information Technology Communication Services Facilities Occupancy Other Depreciation
25
FinancialResults
Working Capital Management
Days sales outstanding
4550
Days
y g
4543 44
40
35
40
45
25
30
10
15
20
0
5
FY06 FY07 FY08 FY09
26
FinancialResults
Return On Invested Capital Vs. WACC andReturn on EquityReturn on Equity
40.20%
36 10%
42%
26 40%
36.10%
30%
36%
17.62%19.64%
17.98%19.40%
26.40%
8
24%
10.24%10.34% 10.20% 10.57%12.19%12%
18%
6%
FY06 FY07 FY08 FY09WACC ROIC ROE
27
Equity Management – Final Dividend of 11 cps (AU)of 11 cps (AU)
EPS – Basic US 46.02 cents
EPS M t US 52 11 tEPS – Management US 52.11 cents
Interim Dividend (40% franked) AU 11 centsInterim Dividend (40% franked) AU 11 cents
Final Dividend (50% franked) AU 11 cents
Current Yield* 2.2%
* Based on 12 month dividend and share price of A$10.13 (close 10 August 2009)
28
FinancialResults
Financial Summary – Final Remarks
› Record management EPS achieved in a ‘once-in-a-generation’ difficult g geconomic environment
› Solid revenues, disciplined expense, cost and capital expenditure management have driven solid margins and generation of free cash flowhave driven solid margins and generation of free cash flow
› Maintained strong balance sheet› Return on equity >35%› Final dividend maintained at AU 11 cents per share, franking lifted to 50%
29
Market Financial CEO’s ReportOverview Results CEO s Report
30
CEO’s Report
CEO Presentation
Stuart CrosbyPresident & CEO
31
Group Strategy and PrioritiesCEO’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› 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 are committing priority resources in two areas:› Continuing to lift our market position› Engaging with a range of proposals and projects around the globe that› Engaging with a range of proposals and projects around the globe that
look to change the legal and/or operational structure of securities ownership and of communications between issuers and investors (we refer to these matters as “market structure”)to these matters as market structure )
32
Delivery Against StrategyCEO’s Report
› Delivering on the first two limbs of the strategy (cost and revenue) remains a g gy ( )key factor in protecting our profits and margins in these tough times:
› Operational productivity continues to improve across the globe› Pay off from revenue initiatives mitigates the declines that we would› Pay-off from revenue initiatives mitigates the declines that we would
otherwise be seeing› Our position at the top of independent service surveys supports client
t ti d i iretention and pricing› Non-cyclical and counter-cyclical acquisitions during the year also protect our
profits and margin across the business cycle› Our strong balance sheet and robust cashflows allow us to look at any
opportunities that emerge
33
Priority - Lifting our Market Position
› We continue to enhance the quality of our operational and client directed q y pprocesses
› We continue to release a range of new and enhanced products across the full range of our businessesrange of our businesses
› Third party shareholder and issuer satisfaction surveys, as well as our own market research, continue to show that the market is recognising our edge in quality and product innovationquality and product innovation
› We expect our differentiation from our competitors to increase - the differentiation should be even clearer as some competitors work to address funding concerns and others prepare for the exit of private equity and otherfunding concerns, and others prepare for the exit of private equity and other non-strategic owners
34
Priority - Market Structure Projects
› A range of market structure projects are underway around the world › Some are driven by brokers’ and custodians’ desire for back-office efficiencies
- in these cases, the interests of our clients (issuers of securities) are often at risk, as back office efficiency comes at significant cost to transparency and
i i b i d icommunication between issuers and investors› Others are driven by issuers responding to increasing investor power and
activism by seeking better visibility of who owns their securities and better ways to communicate with them
› Examples include the ECB’s Target 2 Securities project and the “proxy plumbing” enquiries of the US SEC - similar exercises are underway in Canada, Russia, Hong q y , , gKong and the UK
› We are actively engaged in all cases, and in all cases:› Our global experience gives us a unique and widely valued perspective and› Our global experience gives us a unique and widely-valued perspective, and
we are active and influential participants in the debate› We work to deliver our clients better transparency of their ownership and
ff ti i ti h l ith th i i t
35
more effective communication channels with their investors
Other Key Points at a Group Level
› We accept that volatile foreign exchange markets will continue to bring noise p g g gto our reported results; we will continue to focus on local business profitability
› Operating margins continue to hold up› Corporate actions revenue has also held up but it remains lumpy› Corporate actions revenue has also held up - but it remains lumpy› Non-cyclical and counter-cyclical businesses – Deposit Protection Scheme and
Vouchers in the UK, bankruptcy and class action administration in the US, t t t i C d d i l i ti i b icorporate trust in Canada and commercial communication services businesses
everywhere – also help protect us from the immediate financial markets cycles
36
North America UpdateUnited States
CEO’s ReportUnited States
› Investor Services› Client retention remains strong off the back of strong service, but client
insolvency having some impact› Revenues also hit by dividend reductions / cessation and by record low› Revenues also hit by dividend reductions / cessation, and by record low
transaction volumes and IPO activity › Strong cost management has more than covered falls in transactional fees,
b t i i f ll h d t ff tbut margin income falls harder to offset› Other
› Fund services ramping up for some major projectsp g p j p j› Plans also hurt by collapse in transaction volumes› Georgeson achieving good market share in “fights”; restructuring AGM
service to meet rule 452 repeal opportunitiesservice to meet rule 452 repeal opportunities› Bankruptcy admin – moving Administar into KCC and expanding
infrastructure to take advantage of very buoyant market
37
CEO’s Report
North America UpdateCanadaCanada
› Investor Services› Client retention strong but insolvency biting› Working on a range of industry efficiency initiatives
C T› Corporate Trust› Strong business development and growth in a tough environment› Low interest rates drag against that growthLow interest rates drag against that growth › Looking to take some products (eg, escrow administration) to other
markets – have already written escrow business in Aust and UKOthe› Other
› Plans - holding up well› Georgeson – hit by lower M&A levels but still market leaderg y› CCS – good growth in value-added work (commercial and non-registry)
38
EMEA UpdateUK Russia Germany Ireland & South Africa
CEO’s ReportUK, Russia, Germany, Ireland & South Africa
› UK› Investor Services had a great FY09 – FY10 more challenging after large
client losses through nationalisation, takeover, etc› More registry client acquisition opportunities as competitors struggle to› More registry client acquisition opportunities as competitors struggle to
maintain service standards in the tough environment› Deposit Protection Scheme and Vouchers going very well
Pl lli d i i l b l l ti t l lti ti l› Plans selling award winning global solutions to large multinationals › Germany
› VEM stabilised and focused on integration across the CPU groupg g p› Russia, Ireland and South Africa
› Russian market heavily impacted by GFC› Ireland and South Africa tracking well in a difficult environment
39
CEO’s Report
Asia Pacific Update AsiaAsia
› Hong Kong and Chinag g› Hong Kong IPO pipeline strong and starting to flow (hopefully)› Established as a credible provider of proxy services to PRC issuers (where
no market for proxy services had previously existed)no market for proxy services had previously existed) › Plans offering for foreign listed PRC issuers continues to attract clients
› India› IPO market and mutual fund valuations bouncing back
› JapanIR and p o sales th o gh JSS (JV ith MUTB) pe fo ming c editabl in a› IR and proxy sales through JSS (JV with MUTB) performing creditably in a difficult environment
› Continue to engage positively with MUTB on broader opportunities
40
Asia Pacific UpdateAustralia and New Zealand
CEO’s ReportAustralia and New Zealand
› Investor Services› Very strong major client retention› Strong corporate action flows have offset lower activities in other areas
I lf i l l i i› Investor self-service levels continue to increase› Brought a wide range of new products to market (eg, custodian portal, a
range of on-line voting tools for investors and issuers)› NZ – some capital raising activity, but otherwise subdued
› OtherCCS c ts in disc etiona spend h ting comme cial e en es› CCS – cuts in discretionary spend hurting commercial revenues
› CPM – proposed budget changes would have hurt most plans, and CPU played a strong role in addressing the threat
› Georgeson – remain the market leader› Fund Services – integrated offering continues to attract clients
41
Computershare LimitedFull Year Results 2009 Presentation
Stuart CrosbyPeter BarkerPeter Barker
12 August 2009
Appendix:Full Year Results 2009 Presentation
12 August 2009
43
Appendix 1: Group Comparisons
Group Comparisons
44
FinancialResults
Behind the Headline – NPAT IMPACT
Net profit after tax at 30 June 2009 255,733
Redundancy provisions 12 689
US$000’s
Redundancy provisions 12,689
Restructuring provisions 2,524
VEM asset write-downs 12,573,
Profits on sales of controlled entities and business units (6,872)
Marked to market adjustments - derivatives 940
Intangible asset amortisation 11,946
Management adjusted profit after tax at 30 June 2009 289 533Management adjusted profit after tax at 30 June 2009 289,533
45
FinancialResults
CPU Revenues
4% Revenue Type
6%
10% Register Maintenance
Corporate Actions
49%
5%
5%Fund Services
Stakeholder Relationship Management
21%
Employee Share Plans
Communication Services
21% Technology & Other Revenue
46
FinancialResults
FY09 RevenueRegional Analysis
$USm
Regional Analysis
386.2400
450
$USm
250
300
350
166.0
115 7
184.1
133.0127.5150
200
250
`
52.9
25.45.7
15.7
115.7
13.14.8
31.4 35.118.3 19.0
53.736.9
47.6
12.626.950
100
5.74.80
Register Maintenance
Corporate Actions Fund Services Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
Asia Pacific EMEA North America
47
Asia Pacific EMEA North America
FinancialResults
RevenueFull Year Comparisons
$USm
Full Year Comparisons9.
7
725.
9
817.
6
736.
2
700
800
900
$
639
500
600
70017
1.8
0.5
252.
5
6.1
7.1
303.
6
9 .3
313.
4
146.
6
200
300
40011
0
90.3
95.8
63.2
43.5
116
86.9 11
7
75.7
44.291
.3
89
119
105.
56.883
.9
73.9 98
.4 1
59.2
0
100
Register Corporate Actions Funds Services Stakeholder Employee Share Communication Technology & OtherRegister Maintenance
Corporate Actions Funds Services Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
FY06 FY07 FY08 FY09
48
FinancialResults
Operating CostsFull Year Comparisons
$USm
Full Year Comparisons
431.
1 459.
4 501.
6
475.
2
450
500
55077
.7
4
8.6
84.4
78.6
350
400
27 27
3
28
56.4
27
53.5200
250
300
56.2
69.5
113.
7
29.7
64.5 77
.2
131.
3
39.963
.9
66.1
1
33.561
.5
44.6
1 5
2.5
50
100
150
2 22
0
50
Cost of Sales Personnel Occupancy Other Direct Technology Corporate
FY06 FY07 FY08 FY09
49
FinancialResults
RevenueHalf Year ComparisonsHalf Year Comparisons
1 375.
8 406.
5
411.
1
386.
0
1400
450
$USm
350.
1 3
350.
1
300
350
119.
7
132.
8 169.
4
134.
2 155.
2
159.
7
150
200
250
74.2
34.2 58
.2
37.2
20.441
.8
52.7 58
.9
38.5
23.841
.7
39.9 59
.0
44.4
27.349
.6
49.1 60
.0
60.9
29.5
36.2
35.9 54
.1
83.5
32.046
.2
38.1
44.2 63
.2
27.2
0
50
100
0
Register Maintenance Corporate Actions Funds Services Stakeholder Relationship Management
Employee Share Plans Communication Services Technology & Other Revenue
1H07 2H07 1H08 2H08 1H09 2H09
50
FinancialResults
Operating CostsHalf Year Comparisons
$USm
Half Year Comparisons
8
240.
5
239.
7
261.
9
251.
5
3.7250
300
218.
8
5
223
200
138.
9
139.
7
137.
0
147.
5
137.
4
141.
2
150
28.9 41
.9
61.3
5
35.6
35.3
70.1
.430.5
27.4
76.7
.933.4 38.6
79.7
31.7
3.4
82.2
929.8
.2
71.3
50
100
16.5 23
2
20
12.623
17.92
21
4.6
0
Cost of Sales Personnel Occupancy Other Direct Technology Corporate
51
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Underlying Effective Tax Rate
Tax rate
30 0
35.0
%
23.9
28.5
26.427.5
25.0
30.0
19.4
15.0
20.0
5.0
10.0
0.0
FY05 FY06 FY07 FY08 FY09
52
Hedge Lifecycles FinancialResults
Hedging of Long Term Sustainable Balances
100%
Hedging of Long Term Sustainable Balances
80%
40%
60%
20%
0%
Jul-09 Jul-10 Jul-11 Jul-12
Total Hedging
53
Total Hedging
Interest Rate SensitivityFinancialResults
80US$m PBTImpact
40
60
0
20
-20
0-3.00% -2.50% -2.00% -1.50% -1.00% -0.50% Current 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%
-60
-40
Exposure Hedged exposure
This graph outlines the sensitivity of interest rate changes when measured against core client balances (long term sustainable balances) adjusted by the impact of floating rate debt corporate
-80
Exposure Hedged exposure
54
balances (long term sustainable balances), adjusted by the impact of floating rate debt, corporate cash balances and derivative positions.
Interest Rate HedgingRisk Management
FinancialResultsRisk Management
Interest Rate Hedging
Strategy: - Protect downside risk in current interest rate environment
Policy: - Minimum hedge of 25% / Maximum hedge of 100%
- Minimum term 1 year / Maximum term 5 years
- Current hedging of balances exposed to interest rates: 52%
55
Risk Management – Average Funds Balances for year ending 30 June 2009
FinancialResultsfor year ending 30 June 2009
By Category By Country
Sharesave/Employee
Plans8%Dividend
16%
Australia5%US
22%
Broker Trust18%
Dissenter3%
C d
Regular Trust21%
Corporate Actions34%
Canada49%
UK24%
Average funds balance US$6.8b
21%
56
FinancialResults
Appendix 2: Country Summaries
Country Summaries
57
FinancialResults
Appendix 2: Country Summaries
Asia Pacific
58
FinancialResults
Australia Half Year ComparisonHalf Year Comparison
76.7
74.9
84.0
80
90$Am Revenue Breakdown
221.5
250
$Am Total Revenue
66.8
63
.2
63.4
4
57.1
68.7
60
70
173.6
152.9
168.5
200
8.1
28.7
35.7
35.0
2
47.4
34.0
.5
40
50143.2
136.5
100
150
24.7
9 8.6
28
7.2
21.0
.6
8.2
2
6.8
6.9 8.
7
7.8
25.2
7.5
5
9.5
11.2
26.
8.2
10
20
30
50
3.0 4.
9 7
3.0 5. 6
2.8
6
2.6
2.9 3.8
2.3 5.
1.9
2.0 4.
1
0
10
Register Maintenance
Corporate Actions Fund Services Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
0
1H07 2H07 1H08 2H08 1H09 2H09
59
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Hong Kong Half Year Comparison
$HKmTotal Revenue
$HKm Revenue Breakdown
Half Year Comparison
441.1
400
450
500
300.3300
350
300
350
400
200
250
227.1 235.4
212.2195.9 192.4200
250
123.4126.0
109 4
140.7
161.4
177.6 176.8
150
200
100
150103.5 109.4
50.850
100
0
50
1H07 2H07 1H08 2H08 1H09 2H09
18.3 15.6
0
Register Maintenance Corporate Actions
60
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
India Half Year Comparison
2.3INRm
Revenue Breakdown
Half Year Comparison
1,060.0
1200
INRmTotal Revenue 62
2
538.
4
502.
7550
600
650
812.2 836.1 834.4
800
1000
8
381.
2
.4
400
450
500
582.2
533.2600 28
7.0
261.
8
216.
3
270.
6309.
8
257.
9
9.8
276.
9 317.
250
300
350
200
400
.4 46.3
121.
2
179
8
100
150
200
0
1H07 2H07 1H08 2H08 1H09 2H09
33
4
20.8
14.3
0
50
Register Maintenance Corporate Actions Fund Services
1H07 2H07 1H08 2H08 1H09 2H09
61
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
New Zealand Half Year Comparison
$NZm Revenue Breakdown10
$NZmTotal Revenue
Half Year Comparison
7.0
88.6
8.1
8.4
8.1
7.58
5.9
6.3 6.4 6.46.1
66.9
7.5
6
4
4
1.61.8
2.01.7
1.4
22
1.0
0
Register Maintenance Corporate Actions
0
1H07 2H07 1H08 2H08 1H09 2H09
62
Register Maintenance Corporate Actions
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Appendix 2: Country Summaries
North America
63
FinancialResults
United States Half Year Comparison
$USmRevenue Breakdown
299.4 296 7
$USm Total Revenue
Half Year Comparison
157.
2
9.4
200299.4 296.7
263.2
280.9
231.7
277.1
250
300
133.
7
136.
714
912
5.7
128.
1
150
231.7
200
66.2
61.2
100
100
150
45.5
12.7
27.9
9
45.4
33.1
21.6 25
.9
7
44.4
28.8
13.7
24.9
11.6
42.6
30.5
21.3
20.6
1.3
38.4
20.8
11.8 19
.1
12.1
32.9
20.9
16.0
11.9
50
50
100
1
3.5 9.
3.7 9.
3.1
1
5.2 11
3.9
1
6.1 1
0
Register Main Corp Actions Fund Services Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
1H07 2H07 1H08 2H08 1H09 2H09
0
1H07 2H07 1H08 2H08 1H09 2H09
64
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Canada Half Year Comparison
$CAm Revenue Breakdown130
$CAm
Total Revenue
Half Year Comparison
76.0
76.4
81.8
74.7 76
.4
80
90
$CAm Revenue Breakdown
96.2
114.6116.1
108.5
104.1 102.6110
120
130
63.6
60
70
80
90
100
40
50
50
60
70
21.4 24
.1 27.5
14.4 17
.414
.520
30
20
30
40
2.9
6.7
1.5
0.1
5.1 7.
9
1.5
0.1
4.1 6.
6
1.2
0.43.
2
7.6
1.2
0.32.
6
7.2
1.5
0.72.1
7.1
1.4
1.1
0
10
Register Maintenance
Corporate Actions Stakeholder Relationship
Employee Share Plans
Communication Services
Technology & Other Revenue
0
10
1H07 2H07 1H08 2H08 1H09 2H09
65
Maintenance Relationship Management
Plans Services Other Revenue
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Appendix 2: Country Summaries
EMEA
66
FinancialResults
United Kingdom Half Year Comparison
GBP
Half Year Comparison
.745
.0
50Revenue Breakdown
GBPm
86.5
96.4
90
100
GBPm Total Revenue
29.7
30.4
33.6
29.6
37.
32.5 34
.0
30
40
53.7 55.557.1
60
70
80
0.6 .4 11.8
.4 .3
20
50.4
30
40
50
10
1.8
9.4
1.1
1.0
4.7
2.7
9.8
1.5
1.4
8.2
1.6
9.3
0.8 1.8
10
2.4
1
1.4
1.52.
7
10
1.0 2.
1
1.8
10
1.3
4.0
0
10
0
10
20
0
Register Maintenance
Corporate Actions Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
1H07 2H07 1H08 2H08 1H09 2H09
1H07 2H07 1H08 2H08 1H09 2H09
67
FinancialResults
Ireland Half Year Comparison
EURm Revenue BreakdownEURmTotal Revenue
Half Year Comparison
3.4
3.2
4
4.9
6
2.7
3.0
2.9 3.0
3
3.4
4.1
4.44.2
4.54.5
1.3
23
0.7
0.7
0.5
0.7
2
0.4
0.8
0.5
0.5
2
11.5
0.2
0.1
0.10.
2
0.1
0
Register Maintenance Corporate Actions Funds Services Technology & Other Revenue
1H07 2H07 1H08 2H08 1H09 2H09
0
1H07 2H07 1H08 2H08 1H09 2H09
68
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Germany Half Year Comparison
6EURm Re e e B e kdoEURm Total Revenue
Half Year Comparison
9.8
11. 6
10.1
10
11
12Revenue Breakdown
31.2
30
35
EURm Total Revenue
7.2
7.0
8.6
7.7
8.2
7.4
6.8
7
8
9
19.3
24.8
19
26.3
20
25
4.1
5.7
5.7
5.5
5.0
3.6
5.2
5.2
44
5
617.4
19
15
20
.7 5
2.9
5 0.8
5
3
6
1.8
3.4
2
3
4
5
10
0.
0.1 0.30.5
0.1
0.10.
4
0.4
0.30.5 0
0.5 0.6
0.4
0.3
0
1
Register Maintenance
Corporate Actions Stakeholder Relationship Management
Employee Share Plans
Communication Services
Technology & Other Revenue
0
1H07 2H07 1H08 2H08 1H09 2H09
69
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
South Africa Half Year Comparison
R B kdZARm Total Revenue
Half Year Comparison
102.3 100.5
112.8107.9110
120
ZARmRevenue Breakdown
136.1
123 4
140
160
81.5
87.6
80
90
100
87.7
99.7
115.2 113.1
123.4
100
120
50
60
70
60
80
12.1 12.9 12.6
23.3
15.520
30
40
20
40
6.3
0
10
Register Maintenance Corporate Actions
0
1H07 2H07 1H08 2H08 1H09 2H09
70
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Russia Half Year Comparison
RUBm Revenue BreakdownTotal Revenue
Half Year Comparison
255.6
277.4
247.7
300
RUBm Revenue Breakdown
272.6
292.9
284.5300
RUBm
179.8
247.7
200
250
179.8200
250
128.5
102 8
150128.5
03 0
150
36.8
102.8
50
100103.0
50
100
17.0 15.6
0.30
Register Maintenance Corporate Actions
1H07 2H07 1H08 2H08 1H09 2H09
0
1H07 2H07 1H08 2H08 1H09 2H09
71
1H07 2H07 1H08 2H08 1H09 2H09
FinancialResults
Appendix 3: Assumptions
Assumptions
72
Assumptions: Exchange Rates FinancialResults
Average exchange rates used to translate profit and loss to US dollars
USD 1.00000
AUD 1.31946
HKD 7.76874
NZD 1.62827
INR 47.0214
CAD 1.14155
GBP 0 61234GBP 0.61234
EUR 0.71780
ZAR 8.77224RUB 28.6471AED 3.67288
73
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