COMPUTERSHARE LIMITED. - Earnings Release 2019

COMPUTERSHARE LIMITED

2019 FULL YEAR RESULTS PRESENTATION

Stuart Irving Chief Executive Officer and President

Mark Davis Chief Financial Officer

14 August 2019

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FY19 Executive summary Delivering strong results through sound execution

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Management results [1]
Revenue EBITDA EPS
$2,411.4m 4.8% $685.9m 10.2% 71.46 cents 12.8%
Statutory EPS Return on Equity [3] Dividend per share
Actual Actual Final
76.57 cents [2 ] 38.8% 26.4% 30bps AU 23 cents 9.5%
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FY19 Management EPS increased by (+12.8%) with improved performances from all major business lines; margin income gains and a reduced tax rate

1 Management results are expressed in constant currency throughout this presentation unless otherwise stated. Constant currency equals FY19 results translated to USD at FY18 average exchange rates. All figures in this presentation are presented in USD millions, unless otherwise stated 2 Reconciliation of statutory to management results can be found on slide 24

3 Return on Equity impacted by the addition of profit on disposal of Karvy ($106.4m) increasing total equity and excluded from Management NPAT. Adjusting total equity for profit on disposal increases ROE to 28.4%, up 170bps

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Executing strategic priorities continues to deliver strong returns

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Profitability

Growth

Capital Management

› Strong one off event based revenue, increased the FY18 base, pleasing profit performance in FY19
› Computershare continues to lay the foundations for sustained growth with disciplined investments in growth engines and selective complementary acquisitions
- › Balance sheet remains strong post funding Equatex acquisitions and organic growth initiatives
- › Net debt to EBITDA leverage ratio remains conservative at 1.84x, below mid point of target range
› Group EBITDA margin continues to rise to 28.4% (up 130bps)
› Employee Share Plans performing well. Strong initial contribution from Equatex assisted 2H performance. Platform and broader integration program progressing well. Significant upgrade to technologies, capabilities and scale. Synergy benefits on track
› Strong Margin income contribution at $250.7m, up 39.7%, with $18.5bn average client balances
› Investments in Equatex $419.7m, US Mortgage Services: LenderLive $31.8m and MSRs $100.4m and CAPEX $55.6m including $18.3m on US data centre
› Register Maintenance and Corporate Actions EBITDA margin continues to climb, 35.8%, +250bps despite weaker Corporate Actions activity
- › Karvy disposal completed in 1H - $75.7m post tax proceeds
› Excellent performance in Register Maintenance continues. 5.3% organic revenue growth in US with solid margin expansion
› Ongoing growth in US Mortgage Services. Improved 2H performance with UPB of $101.8bn, up 25.7% with scope for long term growth

› ROE 26.4%, down 30bps. Excluding Karvy, up 170bps at 28.4%. ROIC at 14.8%, down 340bps, reflecting increased investment in US Mortgage Services and Karvy proceeds

› Cost out programs progressing well
› New Issuer Services global business unit building traction in additional large complementary markets, with ongoing revenue growth in Register Maintenance
› Restructuring underway in UK Mortgage Services to improve profitability. Final migration of 3rd party loans on track for FY20, as per Investor Day
› New on market share buy-back announced AU$200m consistent with capital management strategy
› AU 23 cents final dividend, +9.5%
› Lower effective tax rate of 26.5% - with 1H favourable settlement of legacy issue

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FY19 key priorities – execution scorecard Disciplined execution drives growth and profitability

PROGRESS RESULT 4. TRANSITION Shift from regional structure to TO GLOBAL improve customer focus and BUSINESS LINES strategic planning for new growth opportunities

PROGRESS RESULT 1. INVEST IN THE FUTURE OF Equatex acquired, technology OUR PLANS integration underway, BUSINESS customer service enhanced

PROGRESS RESULT 2. EXECUTE OUR Develop a new 5 year plan for MORTGAGE the combined global business SERVICES with ongoing growth in the US STRATEGIC PLANS Migrate UK 3rd party loans to CPU's platform PROGRESS RESULT 3. RETURN ISSUER Drive organic growth through SERVICES TO new services to clients and ORGANIC shareholders with a seamless GROWTH approach to front office and new product development

PROGRESS RESULT 5. EXPAND OUR GLOBAL Optimise Shared Services to SERVICE MODEL drive efficiencies and best STRATEGY practice. Build capabilities in optimum locations

PROGRESS RESULT Drive digitisation and leverage data to improve operational processes and enhanced customer services

6. PROGRESS OUR STAGE, 1,2 & 3 EFFICIENCY INITIATIVES

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FY20 outlook

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FY20 Guidance

› In constant currency, for FY20 we expect:
Management EPS to be down by around 5.0%
Excluding UK Mortgage Services (delayed migration of UK loans to CPU platform as previously announced) and the adoption of IFRS16 accounting for leases, we expect Management EPS would increase by around 5.0%

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Assumptions

› We expect margin income revenue to be similar to FY19 ($246.5m base for comparative purposes)
› Equity markets remain at current levels and interest rate markets remain in line with current market expectations
› Consistent with Investor Day, we expect the delayed migration of UK loans to have an isolated impact to Management EBITDA of $35m
› Group tax rate to be (~27.0%) in FY20 compared to FY19 (26.5%)
› The weighted average number of ordinary shares on issue to be the same as FY19 i.e. no benefits from the share buy-back included
› For constant currency comparisons, FY19 average exchange rates are used to translate the FY20 earnings to USD (refer to slide 59)
› For comparative purposes, the base FY19 Management EPS is 70.24 cents

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Growth: Employee Share Plans

Equatex performing well and integration program on track

	FY19@ CC	FY18 Actual	CC Variance
Fee revenue	$133.7 $107.3 +24.6%
Transactional revenue	$123.9 $86.0 +44.1%
Margin income	$16.2 $16.7 -3.0%
Other revenue	$22.1 $18.4 +20.1%
Total Employee Share Plans revenue	$295.9	$228.4	+29.6%

Employee Share Plans EBITDA	$70.8	$53.8	+31.6%
EBITDA margin %	23.9%	23.5%	+40bps
EBITDA ex margin income	$54.6	$37.0	+47.6%
EBITDA margin ex margin income %	19.5%	17.5%	+200bps

› Strong revenue growth +29.6% and EBITDA growth accelerates, up 31.6% - Equatex enhances scale, capabilities and financial performance
› EBITDA margin excluding margin income, up 200bps to 19.5% supported by efficiency gains
› Equatex outperforming initial expectations with stronger than anticipated transactional revenues. Beginning to leverage market leadership across Europe and UK. $68.9m revenue, $17.2m EBITDA contribution in FY19 (acquired in November 2018)
› Equatex integration underway with good progress in adopting platform across combined European business
› Growth in client base with new client wins recognising technical expertise
› Significant uplift in client satisfaction rating (NPS) with numerous clients who utilise our offering being recognised with industry awards

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Growth: Mortgage Services

e for sustained rowth Strong 2H performance in the US with scop g

	FY19 @ CC	FY18 Actual	CC Variance
	$361.2	$306.1	+18.0%
	$263.4	$254.1	+3.7%
Total Mortgage Services revenue	$624.6	$560.2	+11.5%
Total Mortgage Services EBITDA	$136.5	$124.5	+9.6%

US

› Strong recovery in 2H performance with good loan growth and cost savings. Record Q4 performance with PBT margins achieving target levels of 20% towards the end of the year
› UPB up 25.7% to $101.8bn, carefully building additional scale with scope to grow to circa. $150bn
› Business approaching planned optimum revenue mix. Subservicing and part-owned MSR’s make up just under half of the total and high margin ancillary revenues contribute 31% of sales
› Strong increase in capital light sub servicing UPB, +34.9% with an excess strip deal completed in 2H recycling capital for growth
› MSR investments of $100.4m in FY19, total capital employed of $502.2m. Next stage of growth expected to be less capital intensive

UK

› Delivered positive revenue growth, +3.7% despite runoff of UKAR closed book. FY19 revenue includes full fixed fee contribution, expected to decline by around $40m in FY20
› Restructuring underway given reduction in fixed fee from FY19 onwards, Brexit impacted challenger bank loan originations and the delay in migrating 3[rd] party loans to CPU platform (as announced at Investor Day on 21 May 2019)
› Additional $50m of cost savings to be delivered over 3 years with 90% to be achieved in first two years
› Improving profitability from FY21 onwards (as announced at Investor Day)
› Streamlined, more competitive business, will be well placed as normal market conditions are restored over time

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Note: US MSR amortisation in the period is $43.1m ($34.4m pcp)

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Profitability: Register Maintenance and Corporate Actions Continuing growth and margin expansion in our largest business

	FY19@ CC	FY18 Actual	CC Variance
Register Maintenance revenue	$727.1 $710.3 +2.4%
Corporate Actions revenue	$167.5 $160.6 +4.3%
Total Register Maintenance & Corporate Actions revenue	$894.6 $870.9 +2.7%

Register Maintenance & Corporate Actions EBITDA	$319.9	$290.4	+10.2%
EBITDA margin %	35.8%	33.3%	+250bps
EBITDA ex margin income	$202.2	$207.9	-2.7%
EBITDA margin ex margin income %	26.0%	26.4%	-40bps

› Strong performance with revenues +2.7%, EBITDA +10.2% and ongoing margin expansion to 35.8% enhanced by margin income
› US Register Maintenance revenues increased by 5.3% with net client wins and ongoing efficiency improvements. New leadership and business aligned management structure blending experience with new talent, revitalising performance
› Improved customer service levels and investments in product development leading to consistently high net promoter scores (NPS: 50-70 across regions)
› Corporate Actions activity was subdued in 2H as expected. Increasing market recognition for CPU’s expertise in complex cross border transactions, driving high profile client wins
› Issuer Services – new strategies gaining traction in large complementary revenue pools. Leveraging core skills and strong client relationships in private markets, governance and corporate secretarial services and registered agent, all benefitting from structural growth trends

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Profitability: Structural cost out programs tracking to plan Stages 1, 2 and 3 total gross savings of $80.1m achieved to date

Activity
Total cost
savings
estimates $m
Benefit realisation (cumulative)
FY17A
FY18A
FY19A
FY20E
FY21E
FY22E
FY23E
Stage 1 Total
25 - 30
7.8
14.0
21.8
27.6
28.0
28.0
28.0
Stage 2 Total
60 - 70
5.9
35.4
54.1
63.0
66.6
66.6
66.6
Stage 3 Total
40 - 55
4.3
14.3
25.0
38.1
45.4
Total cost savings
estimate for Stages 1 - 3
125 - 155
13.7
49.4
80.1
104.9
119.6
132.7
140.0

› FY19 incremental gross savings of $30.7m – ahead of plan by $5m versus initial FY19 expectations with accelerated benefits in optimisation of shared services and management structure
› Further gross savings of $60m to be achieved over the next 4 years
› In addition, Equatex synergies ($30m of total savings as previously announced to be achieved over 36 months following completion) and UK Mortgage Services additional cost savings of $50m, to be delivered over 3 years with 90% to be achieved in first two years

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Capital management

Strategies support growth investments and shareholder distributions

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Consistently high returns Conservative balance sheet Growth investments
1.84x - below mid point of Equatex $419.7m
ROE 26.4%, ROIC 14.8% range
LenderLive $31.8m
4.0 year average debt duration,
$550m USPP completed on MSR's $100.4m
improved terms
BBB/Baa2 ratings
Recycling capital Share Buy-back Increased Dividend
Karvy sold, $75.7m post tax Final 23 cps, +9.5%
proceeds AUD $200m announced today
Franked @ 30%
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FY19 Management results summary

Strong performance across all major business lines with margin income enhancing earnings

FY19@ CC	FY18 Actual	CC Variance	FY19 Actual
$2,411.4 $2,300.9 +4.8% $2,356.5 $250.7 $179.5 +39.7% $246.5 $1,724.4 $1,678.5 +2.7% $1,680.6
$685.9	$622.6	+10.2%	$674.9
28.4% 27.1% +130bps 28.6%
$38.4 $32.9 +16.7% $37.5
$47.4 $35.2 +34.7% $47.3
$600.2 $554.6 +8.2% $590.1
$67.9 $62.1 +9.3% $66.7 $532.2 $492.5 +8.1% $523.4
$141.0	$139.6	+1.0%	$138.8
$388.0	$344.7	+12.6%	$381.4
71.46	63.38	+12.8%	70.24
FY19 Actual FY18 Actual Variance $411.6 $453.0 -9.1% $312.9 $379.2 -17.5% 1.84 times 1.33 times +0.51 times

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11 1 References in this presentation to free cash flow and net debt exclude SLS advances/non-recourse debt as appropriate

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Management revenue bridge

Strong contributions from US Mortgage Services, Employee Share Plans and margin income

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2,450
2,400 2,411.4
54.8
71.2
Included
$65.9m of
2,350 large one off 2,356.5
event based 4.0 1.0
revenues
4.8
16.3 68.0
14.6
2,300
2,300.9 26.8
2,250
2,200
USD million
FX
Register Maintenance Corporate Actions Employee Share Plans Services Corporate & Technology Revenue
Stakeholder
FY18 Mgt Revenue Business Services Relationship Mgt Communication Margin Income FY19 @ CC Mgt FY19 Mgt Revenue
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Management revenue by business stream All major business lines performing well

Business stream	FY19@ CC	FY18 Actual	CC Variance	FY19 Actual
Business Services	$945.6 $894.4 +5.7% $927.4
Register Maintenance	$727.1 $710.3 +2.4% $711.2 $167.5 $160.6 +4.3% $164.3 $295.9 $228.4 +29.6% $288.5 $177.6 $181.6 -2.2% $168.9 $68.0 $94.8 -28.3% $67.3 $29.7 $30.7 -3.3% $28.9
Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Corporate & Technology
Total Management Revenue	$2,411.4	$2,300.9	+4.8%	$2,356.5

› Group revenues increase by 4.8%. Reflects strategic growth in US Mortgage Services, margin income gains and Equatex contribution. As expected, large event based activities in FY18 impact Stakeholder Relationship Management, Corporate Actions and Class Actions performance versus pcp – $65.9m
› Margin income increased by $71.2m to $250.7m with increases across Business Services $36.5m, Corporate Actions $23.2m and Register Maintenance $12.0m
› Employee Share Plans +$67.5m, includes contribution from Equatex
› Business Services revenue growth of 5.7% includes Mortgage Services’ revenue +11.5% and a consistently strong performance in high margin, capital light Corporate Trust. Karvy disposal completed in 1H19, contributing $17.9m in FY19
› Register Maintenance revenue +$16.8m with $12.0m from margin income. Growth in US, UK and HK
› Corporate Actions +$6.9m (-$16.3m excluding Margin Income)

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Margin income

Margin income increased to $246.5m, +37.3% with $18.5bn average balances

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Impacted by
weaker Corporate
Action activity
21.0
140.0
21.0
18.0
120.0
125.2
121.2
17.3
16.6 16.8 16.6
16.3
16.1
15.0
100.0
15.1 15.2 15.0
99.9
12.0 89.4
86.4 80.0
79.0 79.6
74.3
69.6
9.0 66.6 60.0
6.0 40.0
3.0 20.0
0.0 0.0
1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19
Average balances Margin Income (USD m)
for period USD billion
Average Client Balances
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Note: Margin income and balances translated at actual FX rates for the period

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Profile of fixed rate deposits and swaps

As at 30 June 2019

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3,500
Fixed rate deposits
3,000 Swaps
2,500
2,000
1,500
1,000
500
0
Jul-19 Jul-20 Jul-21 Jul-22 Jul-23
As at 31 December 2018
3,500
Fixed rate deposits
3,000 Swaps
2,500
2,000
1,500
1,000
500
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
USD million
USD million
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Fixed rate deposits Swaps

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EBITDA and margins by business stream

Solid growth in EBITDA, +10.2% with ongoing margin expansion to 28.4%, up 130bps

Business Stream	FY19 @ CC	FY18 Actual	CC Variance		FY19 EBITDA Margin in CC %	FY18 Actual EBITDA Margin %
Business Services	$255.0 $240.1 +6.2% 27.0% 26.8% $319.9 $290.4 +10.2% 35.8% 33.3% $70.8 $53.8 +31.6% 23.9% 23.5% $41.4 $39.2 +5.6% 23.3% 21.6% $10.8 $22.6 -52.2% 15.9% 23.8% ($12.0) ($23.5) n/a n/a n/a $685.9 $622.6 +10.2% 28.4% 27.1% $435.2 $443.1 -1.8% 20.1% 20.9%
Register Maintenance & Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Corporate & Technology
Total Management EBITDA

Total Management EBITDA ex MI

› Revenue growth and benefits from structural cost out programs drive $63.3m EBITDA increase to $685.9m
› Consistent EBITDA margin performance at 28.4%, towards top end of range over last 10 reporting periods: 24.1% to 29.4%.
› Solid increases in EBITDA for Business Services +6.2%, Register Maintenance and Corporate Actions +10.2% and Employee Share Plans +31.6%
› Pleasing EBITDA ex margin income performance given FY18 results included $65.9m of large one off event based revenues, inflating the base for FY19 comparisons
› Margin income makes a significant contribution with high incremental margin - increases by $71.2m to $250.7m.
› Corporate Actions revenue excluding margin income is $93.2m, down $16.3m reflecting weaker market conditions as anticipated. Register Maintenance & Corporate Actions margins rise to 35.8%, led by efficiency gains and margin income
› EBITDA Contribution: Equatex $17.2m, Karvy $9.3m prior to disposal

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EBITDA and margin income by business stream EBITDA $685.9m, with margin income increasing by 39.7%

Business Stream	FY19 EBITDA @ CC	FY19 MI @ CC	FY19 EBITDA ex MI @ CC	FY18 EBITDA	FY18 MI	FY18 EBITDA ex MI	CC Variance
Business Services	$255.0 $116.8 $138.2 $240.1 $80.3 $159.9 -13.6%
Register Maintenance & Corporate Actions	$319.9 $117.7 $202.2 $290.4 $82.5 $207.9 -2.7%
Employee Share Plans	$70.8 $16.2 $54.6 $53.8 $16.7 $37.0 47.6%
Communication Services	$41.4 $0.0 $41.4 $39.2 $0.0 $39.2 5.6%
Stakeholder Relationship Mgt	$10.8 $0.0 $10.8 $22.6 $0.0 $22.6 -52.2%
Corporate & Technology	($12.0) $0.0 ($12.0) ($23.5) $0.0 ($23.5) n/a
Total Group	$685.9 $250.7 $435.2 $622.6 $179.5 $443.1 -1.8%

› Margin income increased to $250.7m, +$71.2m ($179.5m pcp). Improved average annualised yield of 1.74% on exposed balances
› Higher average balances, $18.5bn ($17.0bn pcp). 2H balances normalised to $16.1bn as expected
› Average exposed client balances* increased to $12.1bn ($11.4bn pcp)
› New policy framework for managing interest rate exposures with minimum hedging levels increased to 4 years. Minimum counterparty credit ratings, maximum deposit thresholds and client balances financial reporting continue to apply

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Numbers are quoted at actual rates

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Operating costs analysis

Disciplined cost controls with 2.7% opex growth

Operating costs	FY19 @ CC	FY18 Actual	CC Variance	FY19 Actual
Cost of sales	$388.0 $380.7 +1.9% $378.4 $1,035.4 $992.6 +4.3% $1,009.5 $976.0 $925.8 +5.4% $951.7 $59.4 $66.8 -11.1% $57.8 $80.0 $90.7 -11.8% $77.5 $110.9 $107.3 +3.4% $108.1 $110.1 $107.2 +2.7% $107.2

Personnel
Fixed/Perm
Variable/Temp
Occupancy
Other Direct
Computer/External technology
Total Operating Costs	$1,724.4	$1,678.5	+2.7%	$1,680.6
Operating Costs/Income Ratio	71.5%	73.0%	-150bps	71.3%

› Excluding acquisitions and disposals, total operating costs decreased 0.2%
› Investing in growth engines: Equatex contributed $51.7m to operating costs
› Underlying Fixed/perm headcount costs (excluding acquisitions and disposals) increased by 1.4% demonstrating disciplined cost control
› Occupancy costs decreased by a lower real estate footprint and relocating to Louisville

Refer to slide 45 for Technology costs at actual FX rates. Computer/External technology includes hardware, software licenses, network and voice costs, 3[rd] party vendor fees and data centre costs

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Cash flow summary at actual fx rates

Positive free cash flows impacted by tax, interest and integration costs

	FY19 Actual	FY18 Actual
Net operating receipts and payments Net interest and dividends Income taxes paid Net operating cash flowsexcludingSLS advances Cash outlay on business capital expenditure Net cash outlay on MSR purchases – Maintenance1	$585.2 $595.6 ($68.1) ($55.7) ($105.5) ($86.9)
	$411.6 $453.0 ($55.6) ($39.4) ($43.1) ($34.4)
Free cash flowexcluding SLS advances	$312.9	$379.2
SLS advance funding requirements2 Cash flow post SLS advance funding2 Investing cash flows Net cash outlay on MSR purchases – Investments1 Acquisitions (net of cash acquired) Disposal of Karvy Other Net operating and investing cash flows	($27.2) ($14.6)
	$285.7 $364.6 ($57.3) ($55.0) ($445.2) ($40.9) $75.7 - ($17.4) $1.1
	($444.2) ($94.8)
	($158.5) $269.8

1 Maintenance MSR capex assumed to be equivalent to the amortisation charge for the period

2 Net operating and financing cash flows

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Balance sheet

Post acquisitions and growth investments, leverage ratio below mid point of target range (1.75x - 2.25x)

	Jun 19	Jun 18	Variance
Current Assets	$1,501.1 $1,241.9 +20.9%
Non-Current Assets	$3,183.9 $2,646.3 +20.3%
Total Assets	$4,685.0	$3,888.2	+20.5%
Current Liabilities	$701.1 $1,091.6 -35.8%
Non-Current Liabilities	$2,409.8 $1,463.2 +64.7%
Total Liabilities	$3,110.9	$2,554.8	+21.8%
Total Equity	$1,574.1	$1,333.4	+18.1%
Net debt1 Net debt to EBITDA ratio1 ROE2 ROIC4	$1,241.4 $827.5 +50.0% 1.84 times 1.33 times +0.51 times 26.4%3 26.7% -30bps 14.8% 18.2% -340bps

1 Excluding non-recourse SLS Advance debt
2 Return on equity (ROE) = rolling 12 month Mgt NPAT/rolling 12 mth avg Total Equity
3 Impacted by the addition of profit on disposal of Karvy ($106.4m) increasing total equity and excluded from Management NPAT. Adjusting total equity for profit on disposal increases ROE to 28.4%, up 170bps

4 Return on invested capital (ROIC) = (Mgt EBITDA less depreciation & amortisation less income tax expense)/(net debt + total equity). Net debt includes cash classified as an asset held for sale in Jun18

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FY20 Execution priorities

Continuing focus on customers, technologies and efficiencies to drive growth and profitability

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Conclusions

› CPU continues to deliver strong results. Management EPS +12.8%, EBITDA +10.2%, EBITDA margins up to 28.4%, up 130 bps
› Improved performances from all major business lines, margin income gains and a reduced tax rate
› Execution progress in building Employee Share Plans, developing Issuer Services and cost out programs
› US Mortgage Services tracking to plan - achieved target PBT margin at 20% towards year end, with scope for sustained growth. UK Mortgage Services migration delay disappointing, one off impact to FY20 profitability. Restructuring to restore profitability in FY21
› Conservative Balance Sheet with leverage ratio below mid point of target range (1.75x-2.25x) self funds acquisitions, growth investments and increased shareholder distributions. New AU$200m share buy-back announced today, AU 23 cents final dividend, up +9.5%
› FY20 Management EPS is expected to be down around 5.0%, impacted by the delayed migration of UK loans to CPU platform and the adoption of IFRS16. Excluding these factors, Computershare expects to deliver ongoing profitable growth

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APPENDICES

Statutory results FY19 Management NPAT analysis FY19 Computershare at a glance Management EBITDA (ex MI) Management EPS – AUD equivalent Financial performance by half year at actual FX rates Revenue and EBITDA by business stream at actual FX rates Global Registry Maintenance and Employee Share Plans Business Services revenue excluding mortgage services Management revenue by region Technology costs CAPEX versus depreciation Client balances Debt facility maturity profile Key financial ratios Effective tax rate Dividend history and franking Mortgage Servicing Exchange rates

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Statutory results

Statutory EPS 76.57 cents exceeds Management EPS 70.24

› Management 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 Group’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. › Non-cash management adjustments include significant amortisation of identified intangible assets from businesses acquired in recent years, which will recur in subsequent years, asset disposals and other 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 adjustments is included on slide 25. › The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards. Reconciliation of Statutory Revenue to Management Results FY19 Total Revenue per statutory results $2,469.0m Management Adjustments Gain on Disposal of the Indian Karvy venture -$106.5 Marked to market adjustments – derivatives -$4.4 Karvy put option liability re-measurement -$1.7 Total Management Adjustments -$112.5 Total Revenue per Management Results $2,356.5m Reconciliation of Statutory NPAT to Management Results FY19 Net profit after tax per statutory results $415.7m Management Adjustments (after tax) Amortisation $40.1 Acquisitions and Disposals -$86.4 Other $11.9 Total Management Adjustments -$34.4 Net Profit after tax per Management Results $381.4m FY19 FY18 Vs FY18 (pcp) Total Revenues $2,469.0m $2,301.1m +7.3% Total Expenses $1,939.7m $1,911.5m +1.5% Statutory Net Profit (post NCI) $415.7m $300.1m +38.5% Earnings per share(post NCI) 76.57 cents 55.17 cents +38.8%	› Management 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 Group’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. › Non-cash management adjustments include significant amortisation of identified intangible assets from businesses acquired in recent years, which will recur in subsequent years, asset disposals and other 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 adjustments is included on slide 25. › The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards. Reconciliation of Statutory Revenue to Management Results FY19 Total Revenue per statutory results $2,469.0m Management Adjustments Gain on Disposal of the Indian Karvy venture -$106.5 Marked to market adjustments – derivatives -$4.4 Karvy put option liability re-measurement -$1.7 Total Management Adjustments -$112.5 Total Revenue per Management Results $2,356.5m Reconciliation of Statutory NPAT to Management Results FY19 Net profit after tax per statutory results $415.7m Management Adjustments (after tax) Amortisation $40.1 Acquisitions and Disposals -$86.4 Other $11.9 Total Management Adjustments -$34.4 Net Profit after tax per Management Results $381.4m FY19 FY18 Vs FY18 (pcp) Total Revenues $2,469.0m $2,301.1m +7.3% Total Expenses $1,939.7m $1,911.5m +1.5% Statutory Net Profit (post NCI) $415.7m $300.1m +38.5% Earnings per share(post NCI) 76.57 cents 55.17 cents +38.8%
Total Revenues $2,469.0m $2,301.1m Total Expenses $1,939.7m $1,911.5m Statutory Net Profit (post NCI) $415.7m $300.1m Earnings per share(post NCI) 76.57 cents 55.17 cents	+7.3% +1.5% +38.5% +38.8%

Reconciliation of Statutory Revenue to Management Results	FY19
Total Revenue per statutory results Management Adjustments Gain on Disposal of the Indian Karvy venture Marked to market adjustments – derivatives Karvy put option liability re-measurement Total Management Adjustments Total Revenue per Management Results	$2,469.0m -$106.5 -$4.4 -$1.7 -$112.5 $2,356.5m

Reconciliation of Statutory NPAT to Management Results	FY19
Net profit after tax per statutory results Management Adjustments (after tax) Amortisation Acquisitions and Disposals Other Total Management Adjustments Net Profit after tax per Management Results	$415.7m $40.1 -$86.4 $11.9
	-$34.4
	$381.4m

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24 Numbers are translated at actual average rates for the period

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Management adjustment items Appendix 4E Note 3

Management adjustment items net of tax for the year ended 30 June 2019 were as follows:

Amortisation

› Customer relationships and most of other intangible assets that are recognised on business combinations or major asset acquisitions are amortised over their useful life in the statutory results but excluded from management earnings. The amortisation of these intangibles in the year ended 30 June 2019 was $40.1 million. Amortisation of mortgage servicing rights, certain acquired software as well as intangibles purchased outside of business combinations is included as a charge against management earnings.

Acquisitions and disposals

› An accounting gain of $106.4 million was recognised on disposal of the Indian Karvy venture.
› Acquisition related expenses of $10.9 million were incurred related to the acquisition of Equatex Group Holding AG (Equatex), including a $6.2 million loss on derivatives used to fix the amount of borrowings needed to fund the acquisition. Additionally, acquisition related expenses of $2.6 million were incurred related to the acquisition of LenderLive Financial Services LLC.
› Pursuant to the Australian controlled foreign company rules, a one-off tax expense of $5.8 million has been recognised as a result of the Equatex IP restructure.
› An expense of $0.7 million was recognised for re-measurement of contingent consideration payable to the sellers of RicePoint Administration Inc, Capital Markets Cooperative, LLC and Altavera, LLC.

Other

› Costs of $14.8 million were incurred in relation to progress of the shared services and technology components of the structural cost-out programmes and the major operations rationalisation underway in Louisville, USA.
› An impairment charge of $13.5 million was recognised due to the write-off of Computershare’s investments in SETL Development Limited and CVEX Group, Inc.
› A restatement of deferred tax balances due to tax law changes in two US states resulted in a tax benefit of $12.8 million.
› Derivatives that have not received hedge designation are marked to market at the reporting date and taken to profit and loss in the statutory results. The marked to market valuation resulted in a gain of $3.1 million.
› The Karvy put option liability re-measurement up to the date of disposal resulted in a gain of $1.7 million.
› A true-up of the US tax reform impact on foreign subsidiary profits resulted in a tax expense of $1.2 million.

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FY19 Management NPAT analysis Margin income assists NPAT growth

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450 FY18 included
$65.9m of large
one off event
400 based revenues 17.7
5.8 1.4 5.0 6.7
71.2 388.0
381.4
350
8.0
344.7
300
250
200
150
100
50
0
USD million
(ex MI) Interest Tax NPAT FX
FY18 NPAT interest FY19 @ CC FY19 NPAT
Mgt EBITDA Margin Income Dep'n & Amort Non-controlling
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FY19 Computershare at a glance

Management revenue @ CC

Management EBITDA @ CC

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Canada ANZ Canada ANZ
8% 10% Asia 13% 4% [Asia] 6%
5%
UCIA
21%
$2,411.4m UCIA $685.9m
25%
USA CEU
47% 3%
USA
CEU
53%
5%
Comms Services Corporate & Technology Corporate &
Comms Services, 6%
8% 1% Technology, -2%
Employee Employee
Share Plans Share Plans,
12% 10%
Stakeholder Register Stakeholder Register
Relationship Maintenance Relationship Maintenance
Mgt 30% Mgt, 2% & Corporate
3% $2,411.4m $685.9m Actions, 47%
Corporate
Actions Business
Business
7% Services,
Services
37%
39%
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Mortgage Services (included in Business Services) revenue is $624.6m and Management EBITDA $136.5m in constant currency

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Management EBITDA excluding the impact of margin income and FX movements

6 Year CAGR 9.0%

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Includes $66.2m of
large one off event
based revenues
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434.8
428.4
405.3
372.8
357.7
321.5
255.3
FY13 FY14 FY15 FY16 FY17 FY18 FY19
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Note: Management EBITDA translated at FY19 average exchange rates and excludes margin income

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Management EPS – AUD equivalent

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140 0.9
0.8389
0.7758 0.8
0.7521
120
0.7273
0.7177
0.7
100
97.87 0.6
80
0.5
81.69
75.74
71.31 72.35
0.4
60
0.3
40 81.69 ~
75.74
71.31 72.35
0.2
~
20
0.1
0 0
FY15 FY16 FY17 FY18 FY19
FX rate
Cents per share
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AUD/USD average exchange rate

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Financial performance by half year at actual FX rates

	2H19	1H19	2H18	1H18	2H17	1H17	2H16	1H16	2H15	1H15	2H14	1H14
Total Management Revenue	$1,228.7 $1,127.8 $1,173.1 $1,127.8 $1,110.8 $1,003.2 $1,035.5 $938.7 $1,016.5 $959.5 $1,045.7 $976.9
Operating Costs	$885.2 $795.4 $843.4 $835.2 $811.6 $762.3 $744.5 $695.7 $720.7 $699.0 $771.7 $709.2
Management EBITDA	$343.5	$331.4	$329.3	$293.4	$299.5	$241.3	$290.3	$242.3	$294.8	$259.3	$273.6	$267.0
EBITDA Margin %	28.0% 29.4% 28.1% 26.0% 27.0% 24.1% 28.0% 25.8% 29.0% 27.0% 26.2% 27.3%
Management Profit Before Tax	$264.6 $258.8 $260.3 $232.2 $239.6 $187.6 $235.0 $192.2 $244.2 $211.1 $220.9 $215.0
Management NPAT	$191.5	$189.9	$177.9	$166.8	$156.7	$140.6	$159.7	$143.8	$172.1	$160.6	$171.5	$163.6
Management EPS (US cents)	35.27	34.97	32.76	30.62	28.67	25.74	29.11	25.98	30.94	28.88	30.83	29.41
Management EPS (AU cents)	49.84	48.03	42.31	39.38	38.22	34.13	39.78	35.96	39.28	32.03	33.93	31.98
Statutory EPS (US cents)	28.80	47.77	23.74	31.43	21.28	27.48	13.33	15.22	24.82	2.79	20.13	25.07
Net operating cash flows^ Days Sales Outstanding Dividend (AU cents) Franking (%) Net debt to EBITDA*	$235.0 $176.6 $253.7 $199.3 $247.0 $173.3 $214.5 $158.5 $247.3 $169.4 $221.7 $223.7 60 65 59 57 60 56 56 53 48 46 45 42 23 21 21 19 19 17 17 16 16 15 15 14 30% 30% 100% 0% 0% 30% 20% 100% 25% 20% 20% 20% 1.84 1.88 1.33 1.58 1.60 1.91 2.12 2.06 1.86 2.10 1.96 2.09

^ Excluding SLS advances

Ratio excluding non-recourse SLS Advance debt

Notable acquisitions: Olympia Finance Group Inc (7[th] Oct 13), Registrar and Transfer Company (1[st] May 14), Homeloan Management Limited (17[th] Nov 14), Valiant (1[st] May 15), Gilardi & Co. LLC (28[th] Aug 15), SyncBASE Inc (1[st] Feb 16), Capital Markets Cooperative LLC (29[th] Apr 16), Equatex Group Holding AG (9[th] Nov 18), LenderLive Financial Services, LLC (31[st] Dec 18)

Notable divestments: Highland Insurance (27[th] Jun 14), Pepper (30[th] Jun 14), ConnectNow (30[th] Jun 15), Closed Joint Stock Company "Computershare Registrar" and Computershare LLC Russia (16[th] Jul 15), VEM Aktienbank AG (31[st] Jul 15), INVeSHARE (16[th] Sep 16), Karvy – 50% interest (17[th] Nov 18) 30

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Revenue and EBITDA by business stream at actual FX rates

	FY19 Revenue	FY19 EBITDA	FY19 Actual EBITDA Margin %	FY18 Revenue	FY18 EBITDA	FY18 Actual EBITDA Margin %
Business Services	$927.4 $249.7 26.9% $894.4 $240.1 26.8% $711.2 $710.3 $164.3 $160.6 $875.5 $315.0 36.0% $870.9 $290.4 33.3% $288.5 $69.2 24.0% $228.4 $53.8 23.5% $168.9 $39.9 23.6% $181.6 $39.2 21.6% $67.3 $10.6 15.7% $94.8 $22.6 23.8% $28.9 ($9.5) n/a $30.7 ($23.5) n/a
Register Maintenance
Corporate Actions
Register Maintenance & Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Corporate & Technology
Total Group	$2,356.5	$674.9	28.6%	$2,300.9	$622.6	27.1%

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Global Register Maintenance and Employee Share Plans revenue

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Registry Maintenance @ CC Employee Share Plans @ CC
Oth Rev
7%
Margin
Income
Holder/Broker
6%
paid
Issuer paid
28%
66%
Fee
45%
$727.1m $295.9m
Margin
Income Transaction
6% 42%
Oth Rev
8%
Margin
Holder/Broker Income
paid 7%
28% Issuer paid
68%
Fee
47%
$228.4m
$710.3m
Margin Transaction
Income 38%
4%
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FY18
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Business Services revenue excluding Mortgage Services

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FY19 @ CC FY18
Other Other
$9.8 $10.9
India Funds 3% 3%
$17.5 India Funds
Voucher 6% $45.1
Services
Class Actions 14%
$19.4 Class Actions
$122.2
6% 38% $136.1
Voucher 41%
Services
Deposit $20.8
Protection 6%
Scheme
$31.4
10% Deposit
Protection
Scheme
$320.9m $23.3 $334.2m
7%
Corporate
Trust
$77.6 Corporate
24% Trust
$73.5
22%
Bankruptcy Bankruptcy
$43.0 $24.6
13% 7%
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Management revenue and EBITDA at actual FX rates Regional Analysis

Revenue by region

EBITDA by region

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2,500 800
2,356.5
2,300.9
195.2
2,114.0 214.5 700 674.9
622.6
2,000 181.0 85.8
600
540.8 91.3
1,087.9 1,137.2 500 81.1
1,500
994.4
400 366.2
323.5
1,000 104.4 266.0
106.9 300
93.8
453.5 489.7 580.3 200 18.4 18.6
20.0
500
107.7 136.2
96.6
136.2 154.4 100
119.1
255.2 247.5 220.4 48.4 56.4 43.3
28.6 25.4 24.7
0 0
FY17 FY18 FY19 FY17 FY18 FY19
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Australia & NZ Asia UCIA Continental Europe USA Canada

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FY19 Management revenue at actual FX rates Regional Analysis

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550
450
350
250
150
50
Register Corporate Actions Business Services Stakeholder Employee Share Communication Corporate &
Maintenance Relationship Mgt Plans Services Technology
-50
ANZ Asia UCIA CEU USA Canada
494.9
382.2
320.9
143.4
99.5
84.3 82.2 86.4 85.8
57.8 59.1 60.3
45.7 49.1
40.1
29.1 29.7
21.2 11.7 12.5 0.0 19.4 8.7 16.5 0.0 1.0 3.4 7.8 6.1 0.0 14.4 21.0 20.4 0.0 6.5 6.8 5.0 0.6 7.0 1.9 11.1 3.2
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Australia

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Management revenue: AUD million
FY17 FY18 FY19
325.0m 305.2m 294.5m
141.2
130.5
119.6
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117.3
110.3
107.5
26.6 25.3 27.0
20.0 19.3 20.0
13.1 12.3 12.1
5.5 6.9 7.0
1.3 0.7 1.3
Register Maintenance Corporate Business Stakeholder Employee Share Communication Corporate &
Actions Services Relationship Mgt Plans Services Technology
FY17 FY18 FY19
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Hong Kong

Management revenue:HKD million	Management revenue:HKD million	Management revenue:HKD million
FY17	FY18	FY19
631.8m	716.3m	742.5m
Register Maintenance Corporate Actions Stakeholder Relationship Mgt Employee Share Plans

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FY17 FY18 FY19

India[*]

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Management revenue: INR million
FY17 FY18 FY19
3,451.4m 3,924.4m 1,608.6m
2,961.6
2,673.8
1,137.7
836.8
659.1
401.1
118.4 125.9
69.8
Register Maintenance Corporate Actions Business Services
FY17 FY18 FY19
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Karvy disposal completed in November 18 and the sale included all operations.

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United States

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Management revenue: USD million
FY17 FY18 FY19
Mortgage
Services
994.4m 1,087.9m 1,159.7m FY17: 257.2
FY18: 306.1
FY19: 361.2
494.9
434.4
382.2
376.0
365.8363.1
Equatex
FY19: 22.5
98.0 99.5
82.8
71.5 64.3 76.8 67.3 65.1
49.1
36.9 38.4 40.1
12.6 12.2 11.1
Register Corporate Business Stakeholder Employee Share Communication Corporate &
Maintenance Actions Services Relationship Mgt Plans Services Technology
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FY17 FY18 FY19

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Canada

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Management revenue: CAD million
FY17 FY18 FY19
240.3m 272.8m 258.7m
133.2
114.5
103.0
80.6 79.4 78.3
25.7 28.3 26.7 27.0
20.0
17.2
8.5 9.2 9.0
4.4 4.2
2.6
Register Maintenance Corporate Business Employee Share Plans Communication Services Corporate &
Actions Services Technology
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FY17 FY18 FY19

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United Kingdom and Channel Islands

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Management revenue: GBP million
FY17 FY18 FY19
331.3m 335.0m 373.1m
Mortgage
Services
FY17: 188.5
FY18: 188.7
FY19: 195.7
247.6
221.5222.3
59.8
54.2 55.0
39.4 41.2 43.2
3.9 3.3 7.7 4.2 4.9 5.0 4.8 4.7 5.0 3.3 3.5 4.7
Register Corporate Business Stakeholder Employee Share Communication Corporate &
Maintenance Actions Services Relationship Mgt Plans Services Technology
FY17 FY18 FY19
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South Africa


217.3 228.8		21.9 26.1 25.3	0.7	1.3	16.9 16.7 0.5 14.5
Register Maintenance Corporate Actions Stakeholder Relationship Mgt Employee Share Plans FY17 FY18 FY19

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Germany

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Management revenue: EUR million
FY17 FY18 FY19
39.6m 42.8m 46.0m
26.0
23.9
20.0
15.9
15.5
14.3
4.0 3.9
3.1
0.5 0.6 0.6
Register Maintenance Employee Share Plans Communication Services Corporate & Technology
FY17 FY18 FY19
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Switzerland

Switzerland	Switzerland	Switzerland
Management revenue:CHF million
FY17	FY18	FY19
7.7m	11.1m	45.2m
			38.2 Equatex FY19: 36.2

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6.9 7.0
4.8
4.1
2.8
0.1 0.1 0.0
Register Maintenance Employee Share Plans Corporate &
Technology
FY17 FY18 FY19
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Technology costs at actual FX rates

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----- Start of picture text -----

350 12.4%
11.4% 12%
11.3%
300
261.3 263.0 265.6
10%
9.6 10.0 10.0
250
75.8 8%
84.2 87.9
200
6%
150
103.6
91.7 95.4
4%
100
2%
50
75.8 73.7 72.3
0 0%
FY17 FY18 FY19
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Development Infrastructure Maintenance Admin Technology costs as a % of revenue

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Technology costs include personnel, occupancy and other direct costs attributable to technology services

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Capital expenditure versus depreciation at actual FX rates

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----- Start of picture text -----

80 45
40
70
35
60 57.2
1.2
30
50 12.3
25
40 37.3 6.6
35.4
1.9 4.5 20
30
11.1 8.7
15
1.0
1.7
20
37.1 10
23.1
10 20.8
5
0 0
FY17 FY18 FY19
Capex
USD million USD million Depreciation
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FY18

FY19

Information Technology Communication Services Facilities Occupancy Other Depreciation

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FY19 Information Technology: US data centre relocation costs $18.3m.

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Breakdown of client balances – averages for FY19

USD 18.5bn Total balances

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USD 12.1bn Exposed balances

USD 6.4bn Non-exposed balances

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USD 9.2bn
Non-hedged balances
USD 7.6bn USD 1.6bn
USD 1.3bn
Non-hedged Natural hedge
Fixed Rate Swaps
balances floating rate debt
Immediate impact from rate changes
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USD 2.9bn Hedged balances USD 1.6bn USD 1.3bn Fixed Rate Deposits Fixed Rate Swaps

Lagged impact from rate changes

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Exposed and non-exposed balances by business


Business Activity	FY19 Balances (USD billions)		Margin income (USD millions)	FY18 Balances (USD billions)		Margin income (USD millions)
	Exposed	Non-exposed		Exposed	Non-exposed
Register Maintenance	2.4	0.4	42.8	2.3	0.4	31.4
Corporate Actions	3.0	2.4	73.5	2.8	0.8	51.1
Employee Share Plans	1.5	0.2	15.7	1.7	0.3	16.7
Business Services	5.2	3.4	114.4	4.6	4.1	80.3
Totals	12.1bn	6.4bn	246.5m	11.4bn	5.6bn	179.5m
	18.5bn			17.0bn
Margin income	$210.7m	$35.7m		$145.4m	$34.1m
Average annualised yield	1.74%	0.55%		1.28%	0.61%

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Translated at actual FX rates

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Breakdown of exposed balances by currency USD exposed balances continues to be the largest component

Average exposed balances hedged

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CAD
2%
GBP
USD 2.9bn 40%
USD (USD 12.1bn x 24%)
58%
Average exposed balances pre natural hedging
AUD
Other
3%
6%
CAD
16%
USD 9.2bn
(USD 12.1bn x 76%)
USD
48% GBP
27%
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Average exposed balances prior to hedging

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Other
AUD
4%
3%
CAD
12%
USD 12.1bn
(USD 18.5bn x 65%)
USD
GBP
50%
31%
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49 Average balances during FY19

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Profile of floating rate deposits

As at 30 June 2019

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----- Start of picture text -----

6,000
5,000
4,000
3,000
2,000
1,000
0
Jul-19 Jul-20 Jul-21 Jul-22 Jul-23
USD million
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As at 31 December 2018

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----- Start of picture text -----

6,000
5,000
4,000
3,000
2,000
1,000
0
Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
USD million
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50 Floating rate deposits comprise both exposed and non-exposed balances

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Debt maturity profile – 30 June 2019

Average debt facility maturity is 4.0 years

						Maturity Dates USD million	Debt Drawn	Committed Debt Facilities	Bank Debt Facility	Private Placement Facility	SLS Advance Facility	SLS Advance Facility

						FY20 Feb-20 FY21 Dec-20 Apr-21 FY22 Jul-21	61.2 160.9 243.0 38.5	125.0 225.0 450.0 50.0	450.0 50.0		125.0 225.0
64.1						Feb-22 FY23 Apr-23 FY24 Jul-23 Feb-24 FY26 Nov-25	220.0 440.3 38.5 220.0 200.0	220.0 450.0 50.0 220.0 200.0	450.0 50.0	220.0 220.0 200.0
		64.1

		207.0				FY29 Nov-28	350.0	350.0		350.0
						TOTAL	$1,972.4	$2,340.0	$1,000.0	$990.0	$350.0
			9.7			$155.0m fixed $1,817.4m floating




		243.0	38.5 11.5			11.5 38.5

				38.5		38.5
					440.3
				220.0		22						350.0


	63.8	160.9				0.0		200.0
	61.2
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 USPP SLS non-recourse advance facilities drawn Syndicated debt drawn Bilateral Facilities Undrawn syndicated & bilateral facilities Undrawn SLS facilities

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Key financial ratios

	Jun 19	Jun 18	Variance
	USD m	USD m	Jun 19 to Jun 18
Interest Bearing Liabilities including SLS advance debt	$2,036.3	$1,481.1	+37.5%
Less Cash*	($561.3)	($534.7)	+5.0%
Net Debt (including SLS advance debt)	$1,475.0	$946.5	+55.8%
Management EBITDA	$674.9	$622.6	+8.4%
Net Financial Indebtedness to EBITDA	2.19 times	1.52 times	Up 0.67 times
Net Financial Indebtedness to EBITDA#	1.84 times	1.33 times	Up 0.51 times

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12.0 EBITDA Interest Coverage
10.0
9.9 10.0 10.1
8.0
6.0
4.0
2.0
0.0
FY17 FY18 FY19
Times
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Net Financial Indebtedness to EBITDA

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2.5
2.19
1.96
2.0
1.52 1.84
1.5
1.60
1.33
1.0
0.5
0.0
FY17 FY18 FY19
Times
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Net debt (excl. non-recourse SLS Advance debt) to EBITDA ratio Net debt to EBITDA ratio

excludes non-recourse SLS advance debt
Includes cash that is classified as an asset held for sale in Jun-18

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Effective tax rate

Statutory and management (at actual FX rates)

Tax rate %

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35%
30% 29.2%
28.3%
26.5%
25.7%
25%
20.9% 20.7%
20%
15%
10%
5%
0%
FY17 FY18 FY19
Statutory Management
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› The Group’s statutory effective tax rate has slightly decreased from 20.9% in FY18 to 20.7% in FY19
› The Group’s management effective tax rate has decreased from 28.3% in FY18 to 26.5% in FY19. This has been aided by a benefit in 1H19 from favourable settlement of legacy issue

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Dividend history and franking

5 Year CAGR 8.7%

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25.0
23
20.0 21 21
19 19
17 17
15.0 16 16
15 15
14
10.0
5.0
0.0
1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19
Dividend (AU cents)
Franking (%)
1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19
20% 20% 20% 25% 100% 20% 30% 0% 0% 100% 30% 30%
AU cents
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Policy 40% - 60% payout ratio of USD Management NPAT with maximum franking

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US and UK mortgage services - UPB and number of loans US mortgage services UPB up 25.7% ($101.8bn v $81.0bn)

Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.	Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.	Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.	Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.	Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.	Performing Non-performing At 30 Jun 19 At 30 Jun 18 At 30 Jun 19 At 30 Jun 18 U.S. $13.7bn 66K Loans $14.7bn 70K Loans $10.6bn 97K Loans $11.3bn 106K Loans Fully-Owned MSRs1 Excess strip deals $24.3bn 113K Loans Excess strip deals $16.8bn 77K Loans SPV deals $19.2bn 95K Loans SPV deals $13.0bn 62K Loans Part-Owned MSRs2 $21.7bn 129K Loans $13.4bn 69K Loans $12.3bn 119K Loans $11.8bn 101K Loans Subservicing3 $59.7bn $44.9bn $42.1bn $36.1bn Total US UPB £48.1bn 381k Loans £50.2bn 417K Loans £4.2bn 34K Loans £3.4bn 30K Loans Fee for Service3,4 U.K.
U.K.	Fee for Service3,4	£48.1bn 381k Loans	£50.2bn 417K Loans	£4.2bn 34K Loans	£3.4bn 30K Loans

1 CPU owns the MSR outright
2 CPU has sold part of the MSR to a third party investor

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3 Servicing performed on a contractual basis
4 UK includes bureau UPB value, but excludes the number of bureau loans

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Mortgage Services Revenue and EBITDA at actual FX rates

	1H16	2H16	1H17	2H17	1H18	2H18	1H19	2H19
US Mortgage Services revenue	$106.4 $115.6 $123.7 $133.5 $143.4 $162.7 $159.5 $201.6
UK Mortgage Services revenue	$41.1 $52.2 $117.3 $122.4 $121.7 $132.4 $126.8 $126.8
Total Mortgage Services revenue	$147.5	$167.8	$241.0	$255.9	$265.1	$295.1	$286.3	$328.4
Total Mortgage Services EBITDA	$15.0	$24.4	$32.6	$41.4	$56.4	$68.1	$59.3	$75.8
EBITDA Margin %	10.2% 14.5% 13.5% 16.2% 21.3% 23.1% 20.7% 23.1%

EBITDA Margin

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23.1% 23.1%
21.3%
20.7%
16.2%
14.5%
13.5%
10.2%
1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19
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Financial Snapshot – US Mortgage Services

FY19 revenue composition

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Base
Other
servicing
service fees
fees
31%
56%
$361.2m
Servicing
related
fees
13%
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Base servicing fees, $202.3m, +18.3%
• Servicing related fees $47.1m, -5.9%
Other services fees $111.7m, +31.4%

	Jun-19	Jun-18	Annual Report reference
Net Loan Servicing Advances	$59.5	$37.8	• Note 16 Loan servicing advances • Note 14 Interest bearingliabilities	 Loan servicing advances  SLS non-recourse lendingfacility
Net MSR intangible asset	$330.3	$272.6	• Note 10 Intangible assets • Note 25 Mortgage servicingrelated liabilities	 Mortgage servicing rights  Mortgage servicingrelated liabilities
Investment in SPVs	$38.62	$25.4	• Note 20 Available-for-sale financial assets(Jun18)	 Investment in structure entities
Other intangible assets1	$73.7	$66.8	• Note 10 Intangible assets	 Goodwill; Other
Total invested capital	$502.2	$402.6

Net cash payments for MSR purchases	$100.4	$89.4	• Cashflow statement	 Investing cash flow - Payments for purchase of controlled entities and businesses (net of cash acquired) and intangible assets
MSR amortisation	$43.1	$34.4	• Note 3 Expenses	 Total Amortisation (net)

1 Other intangibles are largely goodwill and acquired client lists related to acquisitions

2 FY19 Financial assets at fair value through profit or loss – AASB 9 transition

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Mortgage services key terms

Performing servicing: Servicing of a mortgage which is less than 30 days delinquent. Typically loans that meet the criteria of the Government Sponsored Entities e.g. “Fannie Mae”, “Freddie Mac”.

Non-performing servicing: Servicing of a mortgage that is over 30 days delinquent up to management of the foreclosure process. Typically, non-performing servicing is performed over loans that are part of a securitization arrangement.

Mortgage servicing rights: Intangible assets representing an ownership right to service the mortgage for a fee for the life of the mortgage. The owner of the MSR can either service the loan itself or appoint a sub-servicer to do so.

Servicing advances: The owner of the MSR is required to fund various obligations required to protect a mortgage if the borrower is unable to do so. Advances receive a priority in any liquidation and are often financed in standalone non-recourse servicing advance facilities.

Part owned MSRs

› An Excess Strip Sale refers to the sale of a stream of cash flows associated with the servicing fee on a performing MSR. The seller of the servicing strip has the ability to service the mortgage.
› An SPV deal refers to the sale of the rights to the MSR and associated servicing advances into an SPV. CPU typically takes a 20% equity stake in the SPV and performs all servicing on the loans via a sub-servicing fee for service relationship.

US mortgage services – revenue definitions

Base fees – Fees received for base servicing activities

› Fees are generally assessed in bps for owned or structured deals, while subservicing is usually paid as a $ fee
› Subservicing fees vary by loan delinquency or category

Servicing related fees – Additional fees received from servicing a loan

› Loss mitigation fees e.g. for loan modifications
› Ancillary Fees e.g. late fees
› Margin income

Other service fees

› Includes valuation, real estate disposition services, loan fulfilment services and CMC Coop Services

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Exchange rates

› Average FX rates used to translate profit and loss to US dollars for key reporting currencies
› The USD has strengthened in FY19 against all currencies

Currency	FY19	FY18	Var	Movement against USD:
USD	1.0000	1.0000
AUD	1.3933	1.2890	8.1%	Weakened
HKD	7.8405	7.8219	0.2%	Weakened
NZD	1.4874	1.3977	6.4%	Weakened
INR	70.4260	64.9732	8.4%	Weakened
CAD	1.3252	1.2716	4.2%	Weakened
GBP	0.7716	0.7427	3.9%	Weakened
EUR	0.8746	0.8396	4.2%	Weakened
RAND	14.1190	12.7589	10.7%	Weakened
RUB	65.5333	58.7412	11.6%	Weakened
AED	3.6729	3.6728	0.0%	Weakened
DKK	6.5256	6.2495	4.4%	Weakened
SEK	9.1332	8.3012	10.0%	Weakened
CHF	0.9937	0.9689	2.6%	Weakened

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Important notice

Summary information

This announcement contains summary information about Computershare and its activities current as at the date of this announcement.
This announcement is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Computershare’s shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of a particular investor or a potential investor. Before making an investment decision, a prospective investor should consider the appropriateness of this information having regard to his or her own objectives, financial situation and needs and seek specialist professional advice.

Financial data

Management 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 Group’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.
The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards.
All amounts are in United States dollars, unless otherwise stated.

Past performance

Computershare’s past performance, including past share price performance and financial information given in this announcement is given for illustrative purposes only and does not give an indication or guarantee of future performance.

Future performance and forward-looking statements

This announcement may contain forward-looking statements regarding Computershare’s intent, belief or current expectations with respect to Computershare’s business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices.
When used in this announcement, the words ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘should’, ‘could’, ‘objectives’, ‘outlook’, ‘guidance’ and similar expressions, are intended to identify forward-looking statements. Indications of, and guidance on, plans, strategies, management objectives, sales, future earnings and financial performance are also forward-looking statements.
Forward-looking statements are provided as a general guide only and should not be relied upon as a guarantee of future performance. They involve known and unknown risks, uncertainties, contingencies, assumptions and other important factors that are outside the control of Computershare.
Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumptions on which these statements are based. Computershare makes no representation or undertaking that it will update or revise such statements.

Disclaimer

No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Computershare or its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence.

Not intended for foreign recipients

No part of this announcement is intended for recipients outside Australia. Accordingly, recipients represent and warrant that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business.

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AI assistant

COMPUTERSHARE LIMITED. — Earnings Release 2019

64696_rns_2019-08-13_1efd57c5-b695-4151-bed0-c86cd501c16a.pdf