COMPUTERSHARE LIMITED. — Interim / Quarterly Report 2018

Feb 13, 2018

==> picture [418 x 183] intentionally omitted <==

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

COMPUTERSHARE
LIMITED
Strategic growth and cyclical recovery
----- End of picture text -----

2018 Half Year Results Presentation

Stuart Irving Chief Executive Officer and President

Mark Davis

Chief Financial Officer

14 February 2018

==> picture [721 x 76] intentionally omitted <==

==> picture [20 x 541] intentionally omitted <==

Executive summary

1H18 results – strategic growth and cyclical recovery

Management results[1]

EPS

Revenue EBITDA 10.8% 20.0% $1,111.9m $289.6m

30.22 cents 17.4%

Dividend per share

Statutory EPS

Free cash flow

Interim

Actual Actual Interim 31.43 cents[2] 14.4% $166.3m[3] 10.9% AU 19 cents

11.8%

1H18 Management EBITDA grew strongly (+20%) driven by good progress in US Mortgage Services, increased event activity in Stakeholder Relationship Management and Class Actions, cyclical recovery in Corporate Actions and margin income and disciplined cost management

1 Management results are expressed in constant currency throughout this presentation unless otherwise stated. Constant currency equals 1H18 results translated to USD at 1H17 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 23

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

==> picture [90 x 17] intentionally omitted <==

2

==> picture [20 x 541] intentionally omitted <==

FY18 guidance – further upgraded

Outlook improved

• › At last November’s AGM, we said that we expected FY18 Management EPS in constant currency to increase by around +10% on FY17

• › Given the strong 1H18 result and the outlook for 2H18, we now expect Management EPS for FY18 in constant currency to increase by +12.5% on FY17 with a positive bias

Assumptions

• › This outlook assumes that equity markets remain at current levels and interest rate markets remain in line with current market expectations

• › This outlook also assumes the Karvy sale completes in 2H18, share buy-back continues (negligible contribution to Management EPS in FY18) and a small positive impact in FY18 from US tax reform

• › Consistent with FY17 guidance approach, this guidance assumes that FY17 average exchange rates are used to translate the FY18 earnings to USD (refer to slide 58)

• › For comparative purposes, the base FY17 Management EPS is 54.41 cents

==> picture [90 x 17] intentionally omitted <==

3

==> picture [20 x 541] intentionally omitted <==

Good progress on executing strategic priorities

Growth

Capital Management

Profitability

› Mortgage Services EBITDA up 72.1%, now making a significant contribution to Group EBITDA (19.4%)

› Corporate Actions revenue strengthening from FY17 cyclical lows, up 31.0%

› Strong free cash flow $166.3m, up 10.9%

› Net debt to EBITDA continues to reduce - 1.58x – after self

› Margin income accelerating, up $11.8m

› US Mortgage Services continuing to drive scale, UPB up 19.1% since 30 June, revenue and margin expansion

funding growth engines, strategic investments, share buy-back and increased dividends

› $17.3bn of 1H18 average client balances – yield up to 0.92%

› AUD49.7m of CPU shares acquired at an average price of $14.74

› Stakeholder Relationship Management EBITDA up $16.5m, driven by a large event for a US Fund

• › US subservicing UPB up 107.1% with improved market penetration

› Buy-back expected to continue in March

• › UK Mortgage Services intensive integration workload underway and on track

• › Stage 1 and 2 cost out program delivering benefits. Stage 3 details in April

› AU 19 cents interim dividend +11.8%

› Karvy sale now expected to complete in 2H18 ~ $90m sale proceeds

• › Share Plans increased earnings potential: $131.9bn of assets under administration, over half in the money

› Group EBITDA margin up 190bps to 26.0% with further expansion in US Registry margin

==> picture [90 x 17] intentionally omitted <==

4

==> picture [20 x 541] intentionally omitted <==

Growth: Mortgage Services Performing well, now contributes 19.4% of Group EBITDA

		1H18 @ CC	1H17 Actual	CC Variance
		$143.4	$123.7	+15.9%
		$119.0	$117.3	+1.4%
Total Mortgage Services revenue		$262.4	$241.0	+8.9%
Total Mortgage Services EBITDA		$56.1	$32.6	+72.1%

US

• › Growth engine performing well with UPB up 19.1% to $71.1bn – on track to achieve scale and target returns = 20% PBT margins and 12-14% post tax free cash flow return on average invested capital

• › Pleasing growth in high margin capital light subservicing, UPB +107.1%, improved network of servicing agreements

• › Continued growth in high margin non base servicing fee revenues driving improved returns

• › Stable regulatory environment with ongoing structural trend towards servicing quality

UK

• › UKAR - Intensive integration underway, contract generating expected returns

• › Move to a single platform progressing well, releases significant synergy savings in FY19 and FY20

• › Three challenger banks now live and generating new servicing volumes, implementation fees assisted revenue

==> picture [90 x 17] intentionally omitted <==

• Note: US MSR amortisation in the period is $16.0m ($9.8m pcp)

5

==> picture [20 x 541] intentionally omitted <==

Growth: Employee Share Plans

Investing for sustained growth with enhanced earnings potential

		1H18@ CC	1H17 Actual	CC Variance
Transactional revenue		$38.7 $36.8 +5.2%
Fee revenue		$50.5 $53.0 -4.7%
Margin income		$6.9 $8.0 -13.8%
Other revenue		$8.7 $8.5 +2.4%
Total Employee Share Plans revenue		$104.7	$106.3	-1.5%
Employee Share Plans EBITDA		$22.3	$24.7	-9.7%
EBITDA margin %		21.3%	23.2%	-190bps
EBITDA ex margin income		$15.4	$16.7	-7.8%
EBITDA margin ex margin income %		15.7%	17.0%	-130bps

• › Good growth in transactional revenue +5.2% driven by stronger equity markets - solid result given Brexit inflated pcp

• › EBITDA affected by lower margin income (lower deposit returns) and less high margin implementation fees

• › Continued growth in Asia leveraging off market leading design and data analytics capability

• › Investing For the Future program - improvements in customer facing and business development technologies - new platform successfully deployed in China, step change improvement in usage metrics

• › Increase in assets under administration to $131.9bn - enhanced earnings potential

==> picture [90 x 17] intentionally omitted <==

6

==> picture [20 x 541] intentionally omitted <==

Profitability: Register Maintenance and Corporate Actions Recovery in event activity, focus on returning Registry to organic growth

		1H18@ CC	1H17 Actual	CC Variance
Register Maintenance revenue		$326.5 $329.7 -1.0%
Corporate Actions revenue		$84.5 $64.5 +31.0%
Total Register Maintenance & Corporate Actions revenue		$410.9 $394.3 +4.2%
Register Maintenance & Corporate Actions EBITDA		$138.4	$123.4	+12.2%
EBITDA margin %		33.7%	31.3%	+240bps
EBITDA ex margin income		$102.4	$93.6	+9.4%
EBITDA margin ex margin income %		27.3%	25.7%	+160bps

• › Stable Register Maintenance revenues with strong cyclical recovery in Corporate Actions mainly from large US transactions

• › Combination of higher margin events based revenues and cost out programs driving solid EBITDA growth +12.2% and margin improvement to 33.7%, +240bps

• › Key priority to return US Registry to organic revenue growth – encouraging early progress: Business development transformed, sales and support restructured. Redesigned and invested in technology and front office initiatives to extend market leadership and enhance high quality customer experience

• › Market share of IPO’s up 10% to 44% over recent periods. More sophisticated product bundling strategy effective: 1/3[rd] of IPO customers buy multiple products

==> picture [90 x 17] intentionally omitted <==

7

==> picture [20 x 541] intentionally omitted <==

Profitability: Structural cost out programs progressing well Stage 1 and 2 benefits and timetable affirmed. Stage 3 details in April

Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E	Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E	Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E	Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E	Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E	Activity Total cost savings estimates $m Benefit realisation (cumulative) FY17A FY18E FY19E FY20E
Stage 1 Louisville	25 - 30	28%	50%	70%	100%
Stage 2 Spans of control	~15	45%	95%	100%
Operational efficiencies	10 - 15	-	20%	80%	100%
Procurement	5 - 8	-	50%	100%
Process automation	~20	-	20%	80%	100%
Other	10 - 12	-	50%	100%
Total cost savings estimate	85 - 100	13.7	43.4	78.1	92.8

• › Stage 1 and 2 cost out programs progressing well and delivering substantial benefits across multiple business streams. Total benefits, staging and timetable affirmed

• › Stage 1 Louisville project personnel centralisation almost complete with property rationalisation to follow

• › Stage 2 underway. Spans of control savings delivered with ongoing progress across other initiatives

• › Further cost savings anticipated with Stage 3 expected to be detailed in April 18

• Estimates of total cash costs to deliver Stage 1 remain unchanged at $80-85m, circa 65% opex. Estimates of stage 2 total cash costs also remain unchanged at $30-40m, circa 75% opex. All opex costs to be expensed and included in Management adjustments

==> picture [90 x 17] intentionally omitted <==

• 8 • Expected FY18 post tax management adjustment of $15-20m for Stages 1 and 2 (FY17 post tax management adjustments $20.5m)

==> picture [20 x 541] intentionally omitted <==

Capital management: enhancing shareholder returns

Cash generative business model

• › Strong free cash flow* $166.3m, up 10.9%. Recurring revenues, high margins and low maintenance capex, funds strategic investments and shareholder returns

Strategic investments

• › Self funding growth engines with investments in US MSR purchases $67.4m, up 9.4%

• › Invested a further GBP7.5m in SETL with Board representation

Acquisitions

• › Ongoing exploration of acquisition opportunities to leverage core strengths and alignment with CPU core competencies and financially accretive

Share buy-back

• › AUD49.7m of CPU shares acquired at an average price of $14.74

• › Buy-back expected to continue in March post payment of the FY18 interim dividend

Dividend

• › Interim dividend of AU 19 cents unfranked, +11.8% on pcp. At the conclusion of the share buyback, CPU intends to distribute the full value of available franking credits

Leverage ratio

• › Net debt to EBITDA ratio down to 1.58x from 1.60x

• › The sale of Computershare’s interest in Karvy now expected to close in 2H18, ~$90m expected sale proceeds

• Excluding SLS advances

==> picture [90 x 17] intentionally omitted <==

9

==> picture [20 x 541] intentionally omitted <==

1H18 Management Results summary Strong earnings growth and free cash flow

Total Revenue Margin income Operating Costs EBITDA EBITDA Margin % Depreciation Amortisation EBIT Interest Expense Profit Before Tax Income Tax Expense2 NPAT Management EPS(cents) Net operating cash flow1 Free cash flow1 Net debt to EBITDA ratio1	1H18@ CC	1H17 Actual	CC Variance		1H18 Actual
	$1,111.9 $1,003.2 +10.8% $1,127.8 $78.4 $66.6 +17.7% $79.6 $823.0 $762.3 +8.0% $835.1
	$289.6	$241.3	+20.0%		$293.4
	26.0% 24.1% +190bps 26.0%
	$16.1 $17.4 -7.5% $16.4
	$16.2 $9.9 +63.6% $16.2
	$257.3 $214.0 +20.2% $260.8
	$28.3 $26.4 +7.2% $28.6 $229.0 $187.6 +22.1% $232.2
	$60.1	$44.2	+36.0%		$61.1
	$164.6	$140.6	+17.1%		$166.8
	30.22	25.74	+17.4%		30.62
	1H18 Actual 1H17 Actual Variance $199.3 $173.3 +15.0% $166.3 $150.0 +10.9% 1.58 times 1.91 times -0.33 times

1 Excluding SLS advances/non-recourse SLS Advance debt as applicable 10 2 1H18 Management tax rate 26.3% (1H17 23.5%) largely reflects growing share of US earnings

==> picture [90 x 17] intentionally omitted <==

==> picture [20 x 541] intentionally omitted <==

1H18 management NPAT analysis

21% management EBITDA growth (ex margin income)

==> picture [590 x 317] intentionally omitted <==

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

Controllable External
200
180
11.8 16.0 2.2
1.9 5.0
160 36.6 1.4 164.6 166.8
140
140.6
120
100
80
60
40
20
0
Tax FX
NPAT Interest Dep'n & Amort Non- interest Margin Income CC NPAT
1H17 Actual Mgt EBITDA (ex MI) controlling 1H18 NPAT @ 1H18 Actual
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

11

==> picture [20 x 541] intentionally omitted <==

Management revenue breakdown

Strategic growth, cyclical recovery and increased event activity

Business stream		1H18@ CC	1H17 Actual	CC Variance		1H18 Actual
Business Services		$435.3 $375.7 +15.9% $441.4
Register Maintenance		$326.5 $329.7 -1.0% $330.8 $84.5 $64.5 +31.0% $85.2 $104.7 $106.3 -1.5% $106.5 $88.8 $88.8 +0.0% $91.4 $57.3 $21.4 +167.8% $57.5 $14.7 $16.8 -12.5% $15.0
Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Technology & Other Revenue
Total Management Revenue		$1,111.9	$1,003.2	+10.8%		$1,127.8

• › Business Services growing strongly – improved revenue from Class Actions +78.6% coupled with growth in US Mortgage Services revenue

• › Corporate Actions revenue improved from FY17 cyclical lows. Primarily driven by the US, with growth in Asia and Canada

• › Employee Share Plans revenues ex margin income stable, -0.4%. Transactional revenues increased above Brexit inflated pcp, +5.2%. Margin income yield affected by UK deposit rates

• › Stakeholder Relationship Management revenues increased by $35.9m primarily driven by a large proxy solicitation event for a US Fund

• › Margin income increased by $11.8m to $78.4m: Registry Maintenance $2.3m, Corporate Actions $3.9m, Business Services $6.7m partly offset by Employee Share Plans ($1.1m)

==> picture [90 x 17] intentionally omitted <==

12

==> picture [20 x 541] intentionally omitted <==

Management revenue bridge Multiple growth contributors

==> picture [651 x 419] intentionally omitted <==

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

Impacted
by AUD,
GBP and
CAD
1,140
Large event
- Growth in Class Actions for US Fund
1,120 +$33.9m 15.9 1,127.8
-
Growth in US Mortgage 11.8
1,100 Services +$15.8m 0.4 0.0 2.1 1,111.9
- Other Business Services
36.0
1,080 +$3.2m
1,060 16.1
5.5
1,040
52.9 USA +$12.5m
1,020 HK +$2.6m
1,000
1,003.2
980
960
940
USD million
FX
Actions
Register Corporate Employee
Revenue Maintenance Share Plans Services Revenue
Stakeholder
1H17 Actual Mgt Business Services Relationship Mgt Communication Tech & Other Revenue Margin Income 1H18 Total Mgt Revenue @ CC 1H18 Actual Mgt
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

13

==> picture [20 x 541] intentionally omitted <==

Client balances and margin income Stronger balances and increased yield drive accelerated margin income

==> picture [660 x 339] intentionally omitted <==

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

18
17.3 140
16 16.6 16.8
16.3
15.1 15.2 15.0
14 14.4 120
14.0
12
100
105.8
10
89.4
86.8 86.4 80
8
79.0 79.6
74.3
6 69.6
66.6 60
4
40
2
0 20
1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18
Average balances Margin Income (USD m)
for period USD billion
Average Client Balances
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

Note: Margin income and balances translated at actual FX rates for the period 14

==> picture [20 x 541] intentionally omitted <==

EBITDA and margins by business stream 20% EBITDA growth with margin expansion to 26%

Business Stream	1H18 @ CC	1H17 Actual	CC Variance		1H18 EBITDA Margin in CC %	1H17 Actual EBITDA Margin %
Business Services	$111.5 $76.4 +45.9% 25.6% 20.3% $138.4 $123.4 +12.2% 33.7% 31.3% $22.3 $24.7 -9.7% 21.3% 23.2% $13.8 $13.3 +3.8% 15.6% 14.9% $13.6 ($2.9) +569.0% 23.7% -13.5% ($10.0) $6.4 -256.3% n/a n/a $289.6 $241.3 +20.0% 26.0% 24.1%
Register Maintenance & Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Technology & Other
Total Management EBITDA

• › Strong growth in Business Services EBITDA, with Mortgage Services contributing $56.1m, +72.1% and enhanced profitability and margins in Class Actions

• › US Register Maintenance margins continue to improve underpinned by productivity gains. Corporate Actions profitability increased on higher revenues

• › Strong improvement in Stakeholder Relationship Management EBITDA driven by a large event for a US Fund – largest proxy solicitation campaign in US mutual fund history, covering ~ 35m investor accounts

• › Employee Share Plans EBITDA affected by lower margin income and less high margin implementation fees. Investing For the Future program to drive sustained growth - improvements in customer facing and business development technologies - new platform successfully deployed in China, step change improvement in usage metrics

==> picture [90 x 17] intentionally omitted <==

15

==> picture [20 x 541] intentionally omitted <==

EBITDA and margin income by business stream Robust underlying performance continues - EBITDA ex MI +21%

Business Stream Business Services Register Maintenance & Corporate Actions Employee Share Plans Communication Services Stakeholder Relationship Mgt Technology & Other	1H18 EBITDA @ CC	1H18 MI @ CC	1H18 EBITDA ex MI @ CC	1H17 EBITDA	1H17 MI	1H17 EBITDA ex MI	CC Variance
	$111.5 $35.5 $76.0 $76.4 $28.8 $47.6 +59.7% $138.4 $36.0 $102.4 $123.4 $29.8 $93.6 +9.4% $22.3 $6.9 $15.4 $24.7 $8.0 $16.7 -7.8% $13.8 $0.0 $13.8 $13.3 $0.0 $13.3 +3.8% $13.6 $0.0 $13.6 ($2.9) $0.0 ($2.9) +569.0% ($10.0) $0.0 ($10.0) $6.4 $0.0 $6.4 n/a
Total Group	$289.6 $78.4 $211.3 $241.3 $66.6 $174.7 +21.0%

• › Margin income accelerated to $78.4m ($66.6m pcp) with broad based increases across all US and Canadian exposed balances

• › Business Services margin income grew by $6.7m with increases in US Mortgage Services and Class Actions

• › Register Maintenance & Corporate Actions margin income increased on improved revenues with margins increasing to 27.3% (25.7% pcp) excluding margin income

==> picture [90 x 17] intentionally omitted <==

16

==> picture [20 x 541] intentionally omitted <==

Operating costs analysis

Cost to income ratio down to 74%, fixed labour costs held flat +0.3%

Operating costs	Operating costs	1H18 @ CC	1H17 Actual	CC Variance		1H18 Actual
Cost of sales		$195.0 $169.7 +14.9% $197.7 $477.4 $451.8 +5.7% $484.5 $441.8 $440.6 +0.3% $448.6 $35.5 $11.2 +217.0% $35.9 $45.5 $43.7 +4.1% $46.2 $52.6 $50.2 +4.8% $53.4 $52.5 $46.9 +11.9% $53.3
Personnel
Fixed/Perm
Variable/Temp
Occupancy
Other Direct
Computer/External technology
Total Operating Costs		$823.0	$762.3	+8.0%		$835.2
Operating Costs/Income Ratio		74.0%	76.0%	-200bps		74.1%

• › 200bps improvement in cost to income ratio demonstrates operational gearing

• › Disciplined control of BAU cost base with fixed labour costs held flat, while generating strong revenue growth

• › Increase in cost of sales reflects increased expenses relating to event based activity

• › Additional resources deployed to facilitate increased event based activity in Class Actions, Corporate Actions and Stakeholder Relationship Management

Refer to slide 43 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

==> picture [90 x 17] intentionally omitted <==

17

==> picture [20 x 541] intentionally omitted <==

Cash flow summary Free cash flows up 10.9% - self funding growth and capital management

	1H18 Actual	1H17 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	$273.1 $230.2 ($23.3) ($24.9) ($50.5) ($32.0)
	$199.3 $173.3 ($17.0) ($13.5) ($16.0) ($9.8)
Free cash flowexcluding SLS advances	$166.3	$150.0
SLS advance funding requirements2 Cash flow post SLS advance funding2 Investing cash flows Net cash outlay on MSR purchases – Investments1 Net acquisitions and disposals Disposal of Australian head office premises Disposal of investment in INVeSHARE inc. Other Net operating and investing cash flows	($36.0) $2.7
	$130.3 $152.7 ($51.4) ($51.8) ($14.7) ($8.6) - $62.2 - $23.8 ($5.2) $5.5
	($71.3) $31.1
	$59.0 $183.8

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

2 Net operating and financing cash flows

==> picture [90 x 17] intentionally omitted <==

18

==> picture [20 x 541] intentionally omitted <==

Balance sheet

Leverage ratio down to 1.58x after funding strategic investments, share buyback and dividend increase

		Dec 17	Jun 17	Variance
Current Assets	$1,261.7 $1,251.7 +0.8%
Non-Current Assets	$2,699.8 $2,695.3 +0.2%
Total Assets		$3,961.5	$3,947.0	+0.4%
Current Liabilities	$1,041.4 $753.1 +38.3%
Non-Current Liabilities	$1,618.7 $1,956.9 -17.3%
Total Liabilities		$2,660.0	$2,710.0	-1.8%
Total Equity		$1,301.5	$1,237.0	+5.2%
Net debt1 Net debt to EBITDA ratio1 ROE2 ROIC3	$936.9 $867.7 +8.0% 1.58 times 1.60 times -0.02 times 26.4% 25.6% +80bps 16.2% 15.5% +70bps

1 Excluding non-recourse SLS Advance debt

2 Return on equity (ROE) = rolling 12 month Mgt NPAT/rolling 12 mth avg Total Equity

3 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 Dec17 and Jun17

==> picture [90 x 17] intentionally omitted <==

19

==> picture [20 x 541] intentionally omitted <==

Market issues US tax reform, Brexit and Blockchain

US Tax Reform - earnings impacts

• › For the full year FY18, the US Federal corporate tax rate for Computershare is expected to be around 28% compared to 35% in FY17. This will fall to 21% in FY19. In FY18, Computershare also expects to continue to benefit from certain US tax deductions that will either reduce or cease to be available from 1 July 2018.

• › Given the above, and commenting specifically on US Tax Reform, for FY18 Computershare expects the US Federal tax reforms to contribute an additional $6.0m benefit to the full year Management net profit after tax. Approximately, $2.5m of this has been recorded in 1H18.

• › The Group’s statutory income tax expense reduced in 1H18 due to a one-off income tax benefit of $42.4m from restating the US deferred tax balances based on the lower US Federal corporate tax rates enacted under US Tax Reform. This one-time benefit has been excluded from the Company’s management earnings.

• › For FY18 we now expect that the management effective tax rate for the Group will be slightly lower than in FY17 (29.2%).

• › In FY19, a number of factors are relevant including the introduction of new taxes (eg. BEAT and GILTI) and the reduction or cessation of certain US tax deductions. We continue to examine the implications, which may outweigh the benefits of the lower corporate tax rate, and the options to minimise the impact of the new rules.

Brexit

• › We continue to closely monitor Brexit developments and where appropriate, we have prepared plans to deal with potential impacts. We already have established capabilities in the EU which provide a range of options that we may implement once the UK’s transitional arrangements and longer term relationship with the EU become clearer.

Blockchain

• › In all of the markets in which we operate, including Australia, where it is proposed that blockchain technology will replace the current CHESS technology infrastructure, we remain firmly of the view that the registrar function will continue to be a sustainable and integral component of the market infrastructure. With a view to exploring a broader range of commercial opportunities that blockchain may enable, we have increased our equity stake in SETL to 11.3% with Board representation.

==> picture [90 x 17] intentionally omitted <==

20

==> picture [20 x 541] intentionally omitted <==

Conclusions

• › Executing our strategic priorities, complemented by cyclical recovery and increased event activity, driving strong earnings growth: Mgmt EBITDA +20.0%, Mgmt EPS +17.4%

• › Purposefully designed Growth; Profitability and Capital Management strategies delivering results

• Mortgage Services growth engine performing well, EBITDA up 72.1%

• Cost out programs on track - Stage 3 details in April

• EBITDA margin expansion: +190bps to 26.0%

• › Optionality converting into profitability

• Sharp improvement in event revenues: Stakeholder Relationship Management +167.8% and Class Actions +78.6%

• Strong cyclical recovery: Corporate Actions revenue +31.0%. Margin income accelerating - significant exposure to rising rates

• › Strong free cash flow self-funds growth engines, strategic investments and enhanced shareholder returns

• › Guidance further upgraded: FY18 Management EPS to increase by +12.5% on FY17 with positive bias

• › Transformation to a simpler, more transparent and disciplined CPU driving multi-year sustained earnings growth

==> picture [90 x 17] intentionally omitted <==

21

==> picture [352 x 183] intentionally omitted <==

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

APPENDICES
----- End of picture text -----

Statutory results Company Overview 1H18 Computershare at a glance Management EBITDA (ex MI) 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 Management EPS – AUD equivalent 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

==> picture [20 x 541] intentionally omitted <==

Statutory results

23 › 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 24. › 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 1H18 Total Revenue per statutory results $1,130.1m Management Adjustments Marked to market adjustments – derivatives -$2.0 Put option liability re-measurement -$0.3 Total Management Adjustments -$2.3 Total Revenue per Management Results $1,127.8m Reconciliation of Statutory NPAT to Management Results 1H18 Net profit after tax per statutory results $171.2m Management Adjustments (after tax) Amortisation $18.1 Acquisitions and Disposals $12.3 Other -$34.8 Total Management Adjustments -$4.4 Net Profit after tax per Management Results $166.8m 1H18 1H17 Vs 1H17 (pcp) Total Revenues $1,130.1m $1,057.4m +6.9% Total Expenses $941.3m $875.3m +7.5% Statutory Net Profit (post NCI) $171.2m $150.2m +14.0% Earnings per share(post NCI) 31.43 cents 27.48 cents +14.4% Numbers are translated at actual average rates for the period	23 › 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 24. › 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 1H18 Total Revenue per statutory results $1,130.1m Management Adjustments Marked to market adjustments – derivatives -$2.0 Put option liability re-measurement -$0.3 Total Management Adjustments -$2.3 Total Revenue per Management Results $1,127.8m Reconciliation of Statutory NPAT to Management Results 1H18 Net profit after tax per statutory results $171.2m Management Adjustments (after tax) Amortisation $18.1 Acquisitions and Disposals $12.3 Other -$34.8 Total Management Adjustments -$4.4 Net Profit after tax per Management Results $166.8m 1H18 1H17 Vs 1H17 (pcp) Total Revenues $1,130.1m $1,057.4m +6.9% Total Expenses $941.3m $875.3m +7.5% Statutory Net Profit (post NCI) $171.2m $150.2m +14.0% Earnings per share(post NCI) 31.43 cents 27.48 cents +14.4% Numbers are translated at actual average rates for the period
Total Revenues $1,130.1m $1,057.4m Total Expenses $941.3m $875.3m Statutory Net Profit (post NCI) $171.2m $150.2m Earnings per share(post NCI) 31.43 cents 27.48 cents	+6.9% +7.5% +14.0% +14.4%
Reconciliation of Statutory Revenue to Management Results	1H18
Total Revenue per statutory results Management Adjustments Marked to market adjustments – derivatives Put option liability re-measurement Total Management Adjustments Total Revenue per Management Results	$1,130.1m -$2.0 -$0.3
	-$2.3 $1,127.8m
Reconciliation of Statutory NPAT to Management Results	1H18
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	$171.2m $18.1 $12.3 -$34.8
	-$4.4
	$166.8m
23 Numbers are translated at actual average rates for the period

==> picture [20 x 541] intentionally omitted <==

Management adjustment items Appendix 4D Note 2

Management adjustment items net of tax for the half-year ended 31 December 2017 were as follows:

Amortisation

• › Customer contracts and 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 half-year ended 31 December 2017 was $18.1 million. Amortisation of intangibles purchased outside of business combinations (e.g. mortgage servicing rights) is included as a charge against management earnings.

Acquisitions and disposals

• › Tax expense of $5.5 million was booked when the agreement to sell the Group’s investment in the Indian venture Karvy was signed in August 2017. The associated accounting gain on disposal will only be recognised once the disposal is completed pending the required regulatory approvals.

• › An expense of $4.7 million was recognised for re-measurement of contingent consideration payable to the sellers of RicePoint Administration Inc.

• › Disposal related expenses of $1.9 million were incurred in relation to Karvy. Acquisition related expenses of $0.1m were incurred associated with recent acquisitions.

Other

• › A restatement of deferred tax balances due to the US tax reform resulted in a tax benefit of $42.4 million (refer to Appendix 4D note 4).

• › Costs of $5.8 million were incurred in relation to the major operations rationalisation underway in Louisville, USA and the Global Technology Centre in Edinburgh, UK.

• › As the remaining cash flows of Computershare’s Voucher Services continue being realised, an impairment charge of $3.5 million was booked against goodwill related to this business. It is expected that the remaining goodwill of $12.1 million associated with Voucher Services will be written off over the coming periods.

• › 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 $1.4 million.

• › The put option liability re-measurement resulted in a gain of $0.3 million related to the Karvy joint venture arrangement in India.

==> picture [90 x 17] intentionally omitted <==

24

==> picture [20 x 541] intentionally omitted <==

Company overview

A leading global provider of administration services in our selected markets

Who we are

• › Global market leader in transfer agency and share registration, employee equity plan administration, proxy solicitation and stakeholder communications

• › Also specialise in mortgage servicing, corporate trust, bankruptcy, class action administration and a range of other business services

Our capabilities

• › Renowned for our expertise in high integrity data management, high volume transaction processing, reconciliation, payments and stakeholder communications

• › Many of the world’s leading organisations use Computershare’s services to streamline and maximise the value of relationships with their investors, employees, customers and other stakeholders

Our strategy and model

• › Our strategy is to be the leading provider of services in our selected markets by leveraging our core competencies to deliver outstanding client outcomes from engaged staff

• › We focus on new products and services to reinforce market leadership in established markets and invest in technology and innovation to deliver productivity gains and improve cost outcomes

• › We have a combination of annuity and activity based revenue streams, strong free cash flow and high ROE

Growth drivers

• › Organic: Investment in mortgage servicing and employee share plans and enterprise wide cost out program coupled with property rationalisation benefits to drive growth and improved returns

• › Macro: Leverage to rising interest rates on client balances, corporate action and equity market activity

• › Structural: Emerging trend of new non-share registry opportunities due to rising compliance, technology complexity and requirement for efficient processing, payments and reconciliations

==> picture [90 x 17] intentionally omitted <==

25

==> picture [20 x 541] intentionally omitted <==

1H18 Computershare at a glance

Management revenue @ CC

Management EBITDA @ CC

==> picture [683 x 431] intentionally omitted <==

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

Canada ANZ Canada ANZ
9% 12% 15% 6% Asia
Asia 10%
7%
UCIA
$1,111.9m $289.6m 16%
UCIA
20% CEU
USA
0%
49%
CEU USA
3% 53%
Communication Services Technology & other Communication Services Technology & other
8% 2% 5% -3%
Employee Employee
Share Plans Share Plans
9% 7%
Stakeholder
Stakeholder Register Relationship Register
Maintenance
Relationship Maintenance Mgt
Mgt 29% 4% & Corporate
5% $1,111.9m $289.6m Actions45%
Corporate
Actions Business
Business 8% Services
Services
36%
39%
By geography
By business stream
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

26 * Mortgage Services (included in Business Services) revenue is $262.4m and Management EBITDA $56.1m in constant currency

==> picture [20 x 541] intentionally omitted <==

Management EBITDA excluding the impact of margin income and FX movements increased by 21% in 1H18 versus pcp

==> picture [579 x 254] intentionally omitted <==

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

404.6
372.9
357.5
321.5
255.6
211.3
174.7
FY13 FY14 FY15 FY16 FY17 1H18
----- End of picture text -----

Note: Management EBITDA translated at FY17 average exchange rates and excludes margin income. 1H18 results translated to USD at 1H17 average exchange rates

==> picture [90 x 17] intentionally omitted <==

27

==> picture [20 x 541] intentionally omitted <==

Financial performance by half year at actual FX rates

	1H18	2H17	1H17	2H16	1H16	2H15	1H15	2H14	1H14	2H13	1H13
Total Management Revenue	$1,127.8 $1,110.8 $1,003.2 $1,035.5 $938.7 $1,016.5 $959.5 $1,045.7 $976.9 $1,037.5 $987.6
Operating Costs	$835.2 $811.6 $762.3 $744.5 $695.7 $720.7 $699.0 $771.7 $709.2 $767.6 $747.6
Management EBITDA	$293.4	$299.5	$241.3	$290.3	$242.3	$294.8	$259.3	$273.6	$267.0	$268.4	$241.4
EBITDA Margin %	26.0% 27.0% 24.1% 28.0% 25.8% 29.0% 27.0% 26.2% 27.3% 25.9% 24.4%
Management Profit Before Tax	$232.2 $239.6 $187.6 $235.0 $192.2 $244.2 $211.1 $220.9 $215.0 $213.7 $184.9
Management NPAT	$166.8	$156.7	$140.6	$159.7	$143.8	$172.1	$160.6	$171.5	$163.6	$155.6	$149.3
Management EPS (US cents)	30.62	28.67	25.74	29.11	25.98	30.94	28.88	30.83	29.41	27.98	26.87
Management EPS (AU cents)	39.38	38.22	34.13	39.78	35.96	39.28	32.03	33.93	31.98	27.30	25.97
Statutory EPS (US cents)	31.43	21.28	27.48	13.33	15.22	24.82	2.79	20.13	25.07	11.23	17.02
Net operating cash flows^ Days Sales Outstanding Net debt to EBITDA*	$199.3 $247.0 $173.3 $214.5 $158.5 $247.3 $169.4 $221.7 $223.7 $189.5 $170.5 57 60 56 56 53 48 46 45 42 45 48 1.58 1.60 1.91 2.12 2.06 1.86 2.10 1.96 2.09 2.33 2.57

^ Excluding SLS advances

• Ratio excluding non-recourse SLS Advance debt

Notable acquisitions: Morgan Stanley GSPS (1[st] Jun 13), 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).

Notable divestments: IML (30[th] Jun 13), 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). 28

==> picture [20 x 541] intentionally omitted <==

Revenue and EBITDA by business stream at actual FX rates

		1H18 Revenue	1H18 EBITDA	1H18 Actual EBITDA Margin %		1H17 Revenue	1H17 EBITDA	1H17 Actual EBITDA Margin %
Business Services		$441.4 $113.5 +25.7% $375.7 $76.4 +20.3% $330.8 $329.7 $85.2 $64.5 $416.0 $139.6 +33.6% $394.2 $123.4 +31.3% $106.5 $22.5 +21.2% $106.3 $24.7 +23.2% $91.4 $14.1 +15.5% $88.8 $13.3 +15.0% $57.5 $13.6 +23.7% $21.4 ($2.9) -13.6% $15.0 ($10.0) n/a $16.8 $6.4 n/a
Register Maintenance
Corporate Actions
Register Maintenance & Corporate Actions
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Technology & Other
Total Group		$1,127.8	$293.4	+26.0%		$1,003.2	$241.3	+24.1%

==> picture [90 x 17] intentionally omitted <==

29

==> picture [20 x 541] intentionally omitted <==

Global Registry Maintenance and Employee Share Plans revenue

==> picture [683 x 463] intentionally omitted <==

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

Registry Maintenance @ CC Employee Share Plans @ CC
Oth Rev
8%
Holder/Broker MI
paid 7%
28% Issuer paid
68%
Fee
$326.5m $104.7m 48%
Margin
Income TX
4% 37%
Oth Rev
8%
MI
Holder/Broker 7%
paid
28% Issuer paid
69%
Fee
$106.3m 50%
$329.7m
Margin
TX
Income
35%
3%
1H18 @ CC
1H17
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

30

==> picture [20 x 541] intentionally omitted <==

Business Services revenue excluding Mortgage Services

==> picture [670 x 365] intentionally omitted <==

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

1H18 @ CC 1H17
Other
India Funds
3% 12% Other India Funds
5%
13%
Voucher
Services
6% Voucher
Deposit Services
Protection Class Actions 8%
Scheme 33%
6% Deposit
Class Actions
Protection
46% $173.0m $134.7m
Scheme
7%
Corporate
Trust
20%
Corporate
Bankruptcy Bankruptcy Trust
7% 10% 24%
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

31

==> picture [20 x 541] intentionally omitted <==

Management revenue and EBITDA at actual FX rates Regional Analysis

==> picture [625 x 357] intentionally omitted <==

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

Revenue by region EBITDA by region
1,200 350
1,127.8
1,110.9
103.5 299.5
1,003.2 98.5 293.4
300
1,000
82.4 42.5
45.1
241.3
250
800
538.2 544.9 38.7
456.2 200
600 159.7 152.2
150 106.2
34.2 59.6 40.0
400
100
225.7 230.0 2.4 1.4
227.7 17.6
48.1 48.4
200 48.5
66.6 75.4 50
69.6
24.4 29.4
138.0 117.2 133.9 24.0
21.4 16.9
0 0 7.2
1H17 2H17 1H18 1H17 2H17 1H18
Australia & NZ Asia UCIA Continental Europe USA Canada Australia & NZ Asia UCIA Continental Europe USA Canada
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

32

==> picture [20 x 541] intentionally omitted <==

1H18 Management revenue at actual FX rates Regional Analysis

==> picture [668 x 377] intentionally omitted <==

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

450
400
350
300
250
200
150
100
50
0
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
ANZ Asia UCIA CEU USA Canada
218.2
USD millions 168.9
142.8
52.3 52.8 53.2 50.6 53.5
39.6
31.8 26.4 22.4 34.2 29.6 18.4
11.9 12.0 8.5 4.1 0.0 7.8 4.8 0.0 0.3 1.6 3.3 1.7 0.0 8.2 10.6 12.6 10.6 0.0 2.7 12.7 4.1 2.8 0.5 3.3 1.2 6.4 1.5
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

33

==> picture [20 x 541] intentionally omitted <==

Australia

==> picture [663 x 445] intentionally omitted <==

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

Management revenue: AUD million
1H17 2H17 1H18
174.6m 150.4m 165.0m
73.0
68.2 68.9
66.3
61.9
51.1
13.0 13.6 13.5
10.2 9.8 10.5
7.8
6.2
5.3
3.5 3.6
1.9
0.8 0.5 0.4
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

34

==> picture [20 x 541] intentionally omitted <==

Hong Kong

==> picture [663 x 445] intentionally omitted <==

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

Management revenue: HKD million
1H17 2H17 1H18
315.8m 315.9m 344.7m
199.9
196.1
191.7
80.3 78.6
66.3
57.4
37.6 35.8
12.0 12.5
8.2
Register Maintenance Corporate Actions Stakeholder Relationship Mgt Employee Share Plans
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

35

==> picture [20 x 541] intentionally omitted <==

India

Management revenue: INR million

1H17 2H17 1H18 1,634.5m 1,816.9m 1,937.0m

==> picture [648 x 331] intentionally omitted <==

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

1,453.8
1,421.5
1,220.0
439.0
351.1
308.0
63.4 55.0 76.6
Register Maintenance Corporate Actions Business Services
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

36

==> picture [20 x 541] intentionally omitted <==

United States

==> picture [663 x 445] intentionally omitted <==

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

Management revenue: USD million
1H17 2H17 1H18
456.2m 538.2m 544.9m
143.4m
Mortgage
Services
123.7m
Mortgage
218.2
Services
195.7 197.3
178.7
170.1 168.9
52.8 49.6 50.6
36.5 35.0 35.8
31.5 29.6
17.4 19.6 18.4
14.7
7.3 5.2 6.4
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

37

==> picture [20 x 541] intentionally omitted <==

Canada

==> picture [663 x 445] intentionally omitted <==

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

Management revenue: CAD million
1H17 2H17 1H18
108.7m 131.6m 131.6m
67.7
59.2
44.1 43.8
36.6
33.5
15.0
13.3 13.4
9.9
8.6 8.7
4.9 5.2
3.6
1.1 1.5 1.9
Register Maintenance Corporate Business Employee Share Plans Communication Services Tech & Other Revenue
Actions Services
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

38

==> picture [20 x 541] intentionally omitted <==

United Kingdom and Channel Islands

==> picture [663 x 445] intentionally omitted <==

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

Management revenue: GBP million
1H17 2H17 1H18
162.8m 168.5m 160.8m 92.4m
Mortgage
91.1m
Services
Mortgage
Services 113.3
108.2 108.3
28.0
26.2
24.4
19.3 20.1 20.5
2.1 1.7 1.5 1.7 2.5 2.0 2.1 2.7 2.0 3.2 2.0
0.0
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

39

==> picture [20 x 541] intentionally omitted <==

South Africa

South Africa	South Africa	South Africa
Management revenue:RAND million
1H17	2H17	1H18
132.3m	124.5m	134.3m

115.3
111.4
105.9
	11.8	10.0	8.9					8.7	8.2	9.0
					0.4	0.3	1.2
Register Maintenance		Corporate Actions		Stakeholder		Relationship Mgt		Employee Share		Plans
			1H17	2H17	1H18

==> picture [91 x 19] intentionally omitted <==

40

==> picture [20 x 541] intentionally omitted <==

Germany

Germany	Germany	Germany
Management revenue:EUR million
1H17	2H17	1H18
14.0m	25.7m	15.4m

==> picture [648 x 344] intentionally omitted <==

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

13.3
10.8
10.1
9.9
2.6
2.1 2.0 2.2
1.1
0.4 0.3
0.1
Register Maintenance Employee Share Plans Communication Services Tech & Other Revenue
1H17 2H17 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

41

==> picture [20 x 541] intentionally omitted <==

Management EPS – AUD equivalent

› AUD equivalent EPS (actual) was impacted by the stronger AUD

Management EPS (AUD)

==> picture [614 x 300] intentionally omitted <==

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

120 1.0297
0.9139
100 0.8389
0.7774
0.7521
0.7273
80
75.74
71.31 72.35
60 65.92
53.27 ~
40
~ 39.39
20
0
FY13 FY14 FY15 FY16 FY17 1H18
AUD/USD average exchange rate
Cents per share
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

42 Note: Management EPS (AUD) for 1H17 was 34.13

==> picture [20 x 541] intentionally omitted <==

Technology costs at actual FX rates

==> picture [611 x 370] intentionally omitted <==

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

13.3%
160
11.5% 11.6% 12%
140 133.9
130.8
127.4
5.3
4.8
4.3 10%
120
42.2 38.2
100 42.0 8%
80
6%
46.8 50.6
60 45.0
4%
40
2%
20 39.6 36.2 37.3
0 0%
1H17 2H17 1H18
Development Infrastructure Maintenance Admin Technology costs as a % of revenue
USD million
----- End of picture text -----

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

==> picture [90 x 17] intentionally omitted <==

43

==> picture [20 x 541] intentionally omitted <==

Capital expenditure versus depreciation at actual FX rates

==> picture [668 x 389] intentionally omitted <==

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

30
25
21.1
0.7
20
5.9
14.3 14.6
15
0.3 0.5
1.1
3.6
5.1
10 0.5
1.4 14.1
5 10.0
6.6
0
1H17 2H17 1H18
Information Technology Communication Services Facilities Occupancy Other Depreciation
Capex
USD million USD million Depreciation
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

44

==> picture [20 x 541] intentionally omitted <==

Breakdown of client balances

Significant leverage to rising interest rate cycle – $11bn of average exposed balances in 1H18

==> picture [298 x 38] intentionally omitted <==

==> picture [399 x 44] intentionally omitted <==

==> picture [144 x 33] intentionally omitted <==

==> picture [143 x 33] intentionally omitted <==

Lagged impact from rate changes

Immediate impact from rate changes

==> picture [90 x 17] intentionally omitted <==

45

==> picture [20 x 541] intentionally omitted <==

Client balances Strong leverage to rising rates

exposed non-hedged balances ($8.2bn) CPU would generate an additional $82m annualised EBITDA*

3.00%

2.50%

2.00% 1.50%

==> picture [158 x 102] intentionally omitted <==

1.00%

0.50%

0.00% 1 2 3 Achieved Yield Market Yield Futures Yield

1 Achieved yield = annualised total margin income divided by the average balance for each reporting period

2 Market yield = avg. cash rate weighted according to the client balance currency composition for each reporting period

3 Futures yield = avg. implied rates weighted according to the client balance currency composition at 31 December 17

==> picture [90 x 17] intentionally omitted <==

• CPU floating rate debt will operate as a natural hedge against exposed balances

46

==> picture [20 x 541] intentionally omitted <==

Exposed and non-exposed balances by business

Business Activity	1H18 Balances (billions)	1H18 Balances (billions)	Margin income (millions)
	Exposed	Non-exposed
Register Maintenance	2.3	0.4	12.8
Corporate Actions	2.7	1.0	23.3
Employee Share Plans	1.6	0.2	7.1
Business Services	4.4	4.7	36.3
Totals	11.0bn	6.3bn	79.6m
	17.3bn
Margin income	$64.3m	$15.3m
Average annualised yield	1.17%	0.49%

==> picture [90 x 17] intentionally omitted <==

47

==> picture [20 x 541] intentionally omitted <==

Breakdown of exposed balances by currency Currently most exposed to USD rates though GBP and CAD remain important

==> picture [205 x 430] intentionally omitted <==

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

Average exposed balances hedged
CAD
3%
USD
33%
USD 2.8bn
(USD 11.0bn x 25%)
GBP
64%
Average exposed balances un-hedged
OtherAUD
6% 4%
CAD
16%
USD 8.2bn
(USD 11.0bn x 75%)
GBP
USD
22%
52%
----- End of picture text -----

==> picture [274 x 393] intentionally omitted <==

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

Average exposed balances prior to hedging
Other
AUD
6%
3%
CAD
13%
USD 11.0bn
(USD 17.3bn x 64%)
USD
47%
GBP
32%
48
Average balances during 1H18
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

==> picture [20 x 541] intentionally omitted <==

Profile of our swap and deposit book

Short duration fixed rate hedging – enhances yield without preventing the benefit of potential rate rises

==> picture [676 x 440] intentionally omitted <==

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

2,500
Fixed rate deposits Swaps
2,000
1,500
1,000
500
0
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
Floating rate deposits comprise both exposed and non-exposed balances
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
49
USD million
USD million
----- End of picture text -----

==> picture [20 x 541] intentionally omitted <==

Debt facility maturity profile

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 USD million	40.0 FY18 USPP Work underway to retire/refinance Now repaid	40.0 FY18 USPP Work underway to retire/refinance Now repaid			Maturity Dates USD million	Debt Drawn	Committed Debt Facilities		Bank Debt Facility	Private Placement Facility	SLS Advance Facility	SLS Advance Facility
					FY18 Feb-18 FY19 Jul-18 Dec-18 Dec-18 Feb-19 FY20 Jul-19	40.0 235.0 47.7 104.9 70.0 237.0	40.0 235.0 95.0 200.0 70.0 450.0		450.0	40.0 235.0 70.0	95.0 200.0
		40.0 Work underway to retire/refinance Now repaid	235.0 70.0 152.6 295	220.0 237.0 446.0 450 FY21 Jul-20 446.0 450.0 FY22 Feb-22 220.0 220.0 FY24 Feb-24 220.0 220.0 TOTAL $1,620.6 $1,980.0 $325m fixed $1,295.6m floating	FY21 Jul-20 FY22 Feb-22 FY24 Feb-24	446.0 220.0 220.0	450.0 220.0 220.0		450.0	220.0 220.0
					TOTAL	$1,620.6	$1,980.0		$900.0	$785.0	$295.0
									220.0

Note: Average debt facility maturity is 2.3 years as at 31-Dec-17

==> picture [90 x 17] intentionally omitted <==

50

==> picture [20 x 541] intentionally omitted <==

Key financial ratios

	Dec 17	Jun 17	Variance
	USD m	USD m	Dec 17 to Jun 17
Interest Bearing Liabilities including SLS advance debt	$1,634.7	$1,573.1	+3.9%
Less Cash*	($545.2)	($510.7)	+6.8%
Net Debt (including SLS advance debt)	$1,089.5	$1,062.4	+2.6%
Management EBITDA	$592.9	$540.8	+9.6%
Net Financial Indebtedness to EBITDA	1.84 times	1.96 times	Down 0.12 times
Net Financial Indebtedness to EBITDA#	1.58 times	1.60 times	Down 0.02 times

==> picture [315 x 221] intentionally omitted <==

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

12.0 EBITDA Interest Coverage
10.0
10.2
9.9
9.1
8.0
6.0
4.0
2.0
0.0
1H17 2H17 1H18
Times
----- End of picture text -----

==> picture [317 x 219] intentionally omitted <==

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

Net Financial Indebtedness to EBITDA
2.5 2.29
1.96
2.0 1.84
1.91
1.5
1.60 1.58
1.0
0.5
0.0
1H17 2H17 1H18
Times
----- End of picture text -----

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

==> picture [90 x 17] intentionally omitted <==

51

==> picture [20 x 541] intentionally omitted <==

Effective tax rate

Statutory and management (at actual FX rates)

Tax rate %

==> picture [398 x 295] intentionally omitted <==

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

35%
29.2%
30%
26.3%
25.7%
25% 23.5%
20%
16.2%
15%
10%
7.4%
5%
0%
1H17 FY17 1H18
Statutory Management
----- End of picture text -----

• ›

• ›

The Group’s statutory effective tax rate has decreased from 16.2% in 1H17 to 7.4% in 1H18. This is primarily driven by the restatement of deferred tax balances due to US tax reform giving rise to a tax credit of $42.4 million. 1H18 tax expense also included capital gains tax for the pending disposal of Karvy Computershare Private Limited

The Group’s management effective tax rate has increased from 23.5% in 1H17 to 26.3% in 1H18 primarily driven by an increase in US profits which is subject to a higher effective tax rate

==> picture [91 x 19] intentionally omitted <==

52

==> picture [20 x 541] intentionally omitted <==

Dividend history and franking Franking suspended due to share buy-back

==> picture [651 x 364] intentionally omitted <==

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

100%
20.0 100%
19 19
18.0 90%
17 17
16.0 80%
16 16
15 15
14.0 70%
14
12.0 60%
10.0 50%
8.0 40%
6.0 30%
30%
4.0 25% 20%
20% 20% 20% 20%
2.0 10%
0%
0%
0.0 0%
1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18
Dividend (AU cents) Franking (%)
AU cents
----- End of picture text -----

==> picture [91 x 19] intentionally omitted <==

53

==> picture [20 x 541] intentionally omitted <==

US and UK mortgage services - UPB and number of loans US mortgage services UPB up 19.1% ($71.1bn v $59.7bn)

==> picture [507 x 362] intentionally omitted <==

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

Performing Non-performing
At 31 Dec 17 At 30 Jun 17 At 31 Dec 17 At 30 Jun 17
Fully-Owned $15.1bn $8.5bn $10.9bn $12.4bn
MSRs [1] 67K Loans 38K Loans 89K Loans 103K Loans
Part-Owned Excess strip deals Excess strip deals SPV deals SPV deals
$13.3bn $14.6bn $14.3bn $15.8bn
MSRs [2] 62K Loans 66K Loans 67K Loans 72K Loans
$3.2bn $1.8bn $14.2bn $6.6bn
Subservicing [3] 13K Loans 5K Loans 140K Loans 88K Loans
Total US UPB $31.6bn $24.9bn $39.5bn $34.8bn
Fee for £55.7bn £60.0bn £3.8bn £4.3bn
Service [3] 437K Loans 485K Loans 32K Loans 37K Loans
U.S.
U.K.
----- End of picture text -----

==> picture [161 x 262] intentionally omitted <==

• 1 CPU owns the MSR outright

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

==> picture [90 x 17] intentionally omitted <==

3 Servicing performed on a contractual basis

54

==> picture [20 x 541] intentionally omitted <==

Mortgage Services Revenue and EBITDA at actual FX rates EBITDA margin continuing to improve

	1H18	2H17	1H17	2H16	1H16
US Mortgage Services revenue	$143.4 $133.5 $123.7 $52.2 $41.1
UK Mortgage Services revenue	$119.0 $122.4 $117.3 $115.6 $106.4
Total Mortgage Services revenue	$293.4	$255.9	$241.0	$167.8	$147.5
Total Mortgage Services EBITDA	$56.4	$41.4	$32.6	$24.4	$15.0
EBITDA Margin %	19.2% 16.2% 13.5% 14.5% 10.2%

==> picture [538 x 168] intentionally omitted <==

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

EBITDA Margin
19.2%
16.2%
14.5%
13.5%
10.2%
1H16 2H16 1H17 2H17 1H18
EBITDA Margin
----- End of picture text -----

==> picture [90 x 17] intentionally omitted <==

55

==> picture [20 x 541] intentionally omitted <==

Financial Snapshot – US Mortgage Servicing

1H18 revenue composition

Base servicing fees 55% Servicing related fees 21% Other service fees 24% $143.4m • Base servicing fees, $79.3m, +25.8% • Servicing related fees $29.5m, +8.4% • Other services fees $34.5m, +3.4%	Base servicing fees 55% Servicing related fees 21% Other service fees 24% $143.4m • Base servicing fees, $79.3m, +25.8% • Servicing related fees $29.5m, +8.4% • Other services fees $34.5m, +3.4%	Base servicing fees 55% Servicing related fees 21% Other service fees 24% $143.4m • Base servicing fees, $79.3m, +25.8% • Servicing related fees $29.5m, +8.4% • Other services fees $34.5m, +3.4%	Base servicing fees 55% Servicing related fees 21% Other service fees 24% $143.4m • Base servicing fees, $79.3m, +25.8% • Servicing related fees $29.5m, +8.4% • Other services fees $34.5m, +3.4%	Base servicing fees 55% Servicing related fees 21% Other service fees 24% $143.4m • Base servicing fees, $79.3m, +25.8% • Servicing related fees $29.5m, +8.4% • Other services fees $34.5m, +3.4%
	Dec-17	Jun-17	FY17 Annual Report reference
Net Loan Servicing Advances	$59.1	$23.2	• Note 16 Loan servicing advances • Note 14 Interest bearingliabilities	 Loan servicing advances  SLS non-recourse lendingfacility
Net MSR intangible asset	$268.8	$217.7	• Note 10 Intangible assets • Note 25 Mortgage servicingrelated liabilities	 Mortgage servicing rights  Mortgage servicingrelated liabilities
Investment in SPVs	$27.1	$29.3	• Note 20 Available-for-sale financial assets	 Non current equitysecurities
Other intangible assets1	$68.1	$69.7	• Note 10 Intangible assets	 Goodwill; Other
Total invested capital	$423.1	$339.9		 Expected to decline in 2H – excess strip sales
Net cash payments for MSR purchases	$67.4	$85.82	• Cashflow statement	 Investing cash flow - Payments for purchase of controlled entities and businesses (net of cash acquired) and intangible assets
MSR amortisation	$16.0	$23.93	• Note 3 Expenses	 Total Amortisation (net)

• 1 Other intangibles are largely goodwill and acquired client lists related to the CMC acquisition 2 Dec-16 (1H17) = $61.6

• 56 3 Dec-16 (1H17) = $9.8

==> picture [90 x 17] intentionally omitted <==

==> picture [20 x 541] intentionally omitted <==

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

==> picture [90 x 17] intentionally omitted <==

57

==> picture [20 x 541] intentionally omitted <==

Exchange rates

• › Average FX rates used to translate profit and loss to US dollars for key reporting currencies

• › The USD has weakened in 1H18 against pcp against major operating currency – GBP, CAD and AUD

Currency	1H18	FY17	1H17	Var 1H	USD has:
USD	1.0000	1.0000	1.0000
AUD	1.28627	1.32964	1.32591	-3.0%	Weakened
HKD	7.80946	7.76304	7.75635	0.7%	Strengthened
NZD	1.39691	1.40496	1.39457	0.2%	Strengthened
INR	64.63232	66.62415	67.23397	-3.9%	Weakened
CAD	1.27087	1.32777	1.31820	-3.6%	Weakened
GBP	0.75881	0.78623	0.77617	-2.2%	Weakened
EUR	0.85331	0.91855	0.90632	-5.8%	Weakened
RAND	13.39206	13.73011	14.12585	-5.2%	Weakened

==> picture [90 x 17] intentionally omitted <==

58

==> picture [20 x 541] intentionally omitted <==

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.

==> picture [90 x 17] intentionally omitted <==

59