COMPUTERSHARE LIMITED. — Investor Presentation 2016

Aug 9, 2016

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

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

COMPUTERSHARE
LIMITED
Positioning for sustained earnings
growth
----- End of picture text -----

2016 Full Year Results Presentation

Stuart Irving Chief Executive Officer and President

Mark Davis

Chief Financial Officer

10 August 2016

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

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

Robust underlying business performance continues Management EBITDA excluding both margin income and the impact of exchange rate movements has grown 46.1% since FY13

==> picture [652 x 352] intentionally omitted <==

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

400 35%
379.3
350 364.4
30%
327.2
300
25%
250
259.7
21.4% 20%
20.8%
19.6%
200
16.4% 15%
150
10%
100
5%
50
0 0%
FY13 FY14 FY15 FY16
Mgt EBITDA (excluding MI) EBITDA margin (excluding MI)
USD million
EBITDA Margin
----- End of picture text -----

Management EBITDA translated at FY16 average exchange rates and excludes margin income

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

2

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

Overview: Positioning for sustained earnings growth

› FY16: Resilient performance

• Total management revenue $2,074.7m, +5.0%[1]

• Management EBITDA $557.1m, +0.5% (26.9% margin) and Management EBITDA excluding margin income $394.4m, +4.3%[1]

• Management EPS 55.09 cents, -7.9%, in line with guidance (around -7.5%) and -4.3% in CC

• Free cash flow (excluding SLS advances) $347.4m, -10.5%

• ROE 26.9%

• Register maintenance and corporate actions EBITDA $277.5m, +2.6%[1]

• Business services EBITDA $153.6m, +13.9%[1]

• Plan Managers EBITDA $58.9m, -20.8%[1] due primarily to a substantial reduction in transaction volumes following a period of sustained market volatility

› Positioning for sustained earnings growth

• Investing for growth

• › Execution of mortgage servicing strategy well on track: UKAR and CMC

• › Investing to strengthen market leading position in Plans

• Sustain leading position in Registry with ongoing operational efficiencies

• Structural group wide cost review underway supported by external cost out specialists

› Capital management and enhanced shareholder returns

• Net debt to EBITDA ratio (excluding non-recourse SLS Advance debt) 2.12x remains within Board policy range

• Recycling capital to drive growth, scale and improved returns - Corporate headquarters sold

• Disciplined acquisition strategy focused on near verticals and core competencies

• Clear capital management policy AU$105.2m of shares bought back to date. FY16 dividend up by 6.5%

1 Figures are quoted in constant currency (CC). CC equals FY16 results translated to USD at FY15 average exchange rates All figures throughout this presentation are in USD million unless otherwise stated

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

3

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

FY17 outlook

Guidance

• › In constant currency, Computershare expects FY17 Management EPS to be slightly up on FY16 with a further update to be provided at the AGM

Assumptions

• › This outlook assumes that equity markets remain at current levels and interest rate markets perform broadly in line with current market expectations and that FY17 corporate action revenue is similar to FY16

• › Our constant currency guidance assumes that FY16 average exchange rates are used to translate FY17 earnings to USD (refer slide 52 for details)

• › Also subject to the important notice on slide 53 regarding forward-looking statements

Change in approach to guidance

• › FY17 guidance is given in constant currency terms to better illustrate Group underlying performance

• › For comparative purposes, the base Management EPS for FY16 is 55.09 cents

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

4

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

Contents

Section	Title	Page
1	Company overview	6
2	Financial performance	7
3	Operating review	11
4	Strategies and Execution	22
5	Conclusion	25
6	Appendices	26

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

5

==> 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 outsourcing due to rising compliance, technology complexity and requirement for efficient processing, payments and reconciliations

6

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

FY16 Computershare - at a glance

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

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

Management revenue @ CC Management EBITDA @ CC
Canada ANZ
ANZ Canada
9% 8%
15% 14% Asia
8%
Asia
6%
$2,074.7m $557.1m UCIA
UCIA 22%
USA
19%
47%
USA
CEU
CEU 45%
3%
4%
Communication Services Technology & other Communication Services Technology & other
9% 2% 9% 2%
Employee Employee
Share Plans Share Plans
11% 10%
Stakeholder
Stakeholder Register Relationship Maintenance Register
Relationship Maintenance Mgt
& Corporate
Mgt $2,074.7m 37% 1% $557.1m Actions
4%
50%
Business
Business
Services Corporate Services
30% Actions 28%
7%
By geography
By business stream
----- End of picture text -----*

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

• 7 Figures are quoted in constant currency (CC). CC equals FY16 results translated to USD at FY15 average exchange rates * Mortgage Services revenue is $321.1m in constant currency

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

Results summary

Total Management Revenue Operating Costs Management EBITDA EBITDA Margin % Management Profit Before Tax	Total Management Revenue Operating Costs Management EBITDA EBITDA Margin % Management Profit Before Tax	Comparison in constant currency	Comparison in constant currency	Comparison in constant currency
		FY16@ CC 1	FY15 Actual	CC Variance		FY16 Actual
		$2,074.7	$1,976.1 Up 5.0% $1,974.2 $1,419.7 Up 6.8% $1,440.2
		$1,516.3
		$557.1	$554.1	Up 0.5%		$532.6
		26.9%	28.0% Down 110bps 27.0% $455.3 Down 1.9% $427.2
		$446.7
Management NPAT		$315.3	$332.7	Down 5.2%		$303.5
Management EPS (US cents)		57.22	59.82	Down 4.3%		55.09
Statutory EPS (US cents) Management EPS (AU cents) Free cash flow2 Net debt to EBITDA ratio3 Final Dividend (AU cents) Final Dividend franking amount
		FY16 Actual	FY15 Actual	Variance
		28.55 75.74 $347.4 2.12 17.00 20%	27.61 Up 3.4% 71.31 Up 6.2% $388.3 Down 10.5% 1.86 Up 0.26 times 16.00 Up 1 cent 25% Down from 25%

1 Constant currency (CC) equals FY16 results translated to USD at FY15 average exchange rates

2 Free cash flow has been calculated excluding operating cash flow requirements for SLS advances. The comparative period has been restated. Cash flows related to SLS are detailed on slide 19

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

3 Excludes non-recourse SLS advance debt

8

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

FY16 management NPAT analysis Underlying resilience of operating business

==> picture [637 x 328] intentionally omitted <==

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

Controllable External
360
16.1
350
340 5.6
6.0 0.8
330 332.7
13.0
320
8.1 315.3
310
11.7
300 303.5
290
280
FY15 Mgt EBITDA Interest Dep'n & NCI MI Tax FY16 NPAT FX FY16 NPAT
NPAT (ex MI) Amort @ CC
USD million
----- End of picture text -----

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

9 Constant currency (CC) equals FY16 results translated to USD at FY15 average exchange rates

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

Management EPS – AUD equivalent

• › For Australian investors, AUD equivalent EPS remains key and the weaker AUD has driven an increase in this metric over recent years

• › From FY13 to FY16, in AUD EPS terms, CPU produced 42.2% growth with a CAGR of 12.4%

Management EPS (AUD)

==> picture [658 x 322] intentionally omitted <==

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

1.0297
120
0.9139
100 0.8389
0.7273
80
75.74
71.31
60 65.92 ~
53.27 ~
40
20
0
FY13 FY14 FY15 FY16
AUD/USD average exchange rate
10
Cents per share
----- End of picture text -----

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

Management revenue breakdown

		Comparison in constant currency	Comparison in constant currency	Comparison in constant currency
Revenue stream		FY16@ CC	FY15 Actual	CC Variance		FY16 Actual
Register Maintenance		$764.1 $798.9 Down 4.4% $727.8 $147.5 $144.2 Up 2.3% $140.5 $629.3 $519.1 Up 21.2% $605.7 $234.3 $247.6 Down 5.4% $222.2 $193.4 $179.8 Up 7.6% $174.4 $71.2 $58.2 Up 22.3% $70.1 $34.9 $28.2 Up 23.8% $33.4
Corporate Actions
Business Services
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Technology & Other Revenue
Total Management Revenue		$2,074.7	$1,976.1	Up 5.0%		$1,974.2

• › Register maintenance impacted largely by the disposal of Russian business. Adverse impact in the US due to M&A, pricing and shareholder activity but client wins strong. Improved performance in UK, Hong Kong and Australia

• › Corporate actions benefited from stronger US M&A activity

• › Business services stronger largely due to full period contribution from HML, growth in US mortgage services, bankruptcy, India mutual funds, UKAR and acquisitions – Gilardi and CMC

• › Weaker share prices of large energy and resource clients driving lower transactional activity in employee share plans and lower margin income

• › Communication services benefited from increased volumes in Australia and USA

• › Stakeholder relationship management revenue was driven by large recoverable income (postage)

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

11

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

Management revenue bridge 5% revenue growth (pre FX impact)

==> picture [667 x 381] intentionally omitted <==

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

2,100
6.7
13.6
13.0
117.6 13.0
2,074.7
9.8
2,050
$20.0m
Russian
business
2,000 disposal
1,976.1 100.5 1,974.2
1,950 2.7
32.1
1,900
1,850
12
USD million
FX
Actions
Revenue Register Corporate Employee Share Plans Services Revenue Revenue
Maintenance Tech & Other
Stakeholder
FY15 Total Mgt Business Services Relationship Mgt Communication Margin Income FY16 Total Mgt Revenue @ CC FY16 Total Mgt
----- End of picture text -----

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

Client balances and margin income Continued growth in balances

==> picture [689 x 353] intentionally omitted <==

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

18
16
15.7 Effective hedging - natural 8%
15.2 15.2 ($1.2bn)
14
14.2
12 Effective hedging - derivative
/ fixed rate 26%
($4.1bn)
10
224.9
8 192.6 Exposure to interest rates 30%
($4.7bn)
175.8
6 153.3
4
No exposure 36%
2 ($5.7bn)
0
FY13 FY14 FY15 FY16
Average balances (USD billion) Margin income (USD million)
USD billion Pre-hedged exposure
Client Balances
exposed
Not
----- End of picture text -----

Note: Margin income and balances translated at actual average rates for the year Refer to slides 43 – 45 for further details

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

13

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

Client balances Strong leverage to rising rates

3.00% exposed balances ($4.7bn) CPU would generate an 2.50% additional $47m annualised EBITDA 2.00% 1.50% 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

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

14 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 30 Jun 16

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

EBITDA by business stream

		Comparison in constant currency	Comparison in constant currency	Comparison in constant currency	Comparison in constant currency	Comparison in constant currency	Comparison in constant currency
		FY16 @ CC	FY15 Actual	CC Variance		FY16 Actual	FY16 Actual EBITDA Margin %
Register Maintenance & Corporate Actions		$277.5 $270.5 Up 2.6% $266.0 30.6% $153.6 $134.9 Up 13.9% $145.3 24.0% $58.9 $74.4 Down 20.8% $56.5 25.4% $49.3 $38.7 Up 27.4% $46.2 26.5% $6.9 $9.0 Down 23.3% $6.5 9.3% $11.1 $26.6 Down 58.3% $12.1 n/a
Business Services
Employee Share Plans
Communication Services
Stakeholder Relationship Mgt
Technology & Other
Total Management EBITDA		$557.1	$554.1	Up 0.5%		$532.6	27.0%

• › Despite lower revenue, Register Maintenance and Corporate Actions EBITDA modestly higher. Adverse impact of US register maintenance and disposal of Russia offset by US corporate actions activity and improved performance in UK, Hong Kong and Australia

• › Employee Share Plans results were significantly impacted by lower transactional volumes for key clients and lower margin income. Increased regulatory costs and investments in service, product and systems also impacted outcomes

• › Business Services benefited from growth in US mortgage services, bankruptcy, class actions and India mutual funds administration

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

15

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

Operating costs analysis

Costs in line with expectations with new initiatives underway

• › As highlighted in FY16 guidance in August 2015, costs are up as expected

• › Operating cost increases of 6.8% are driven by:

• BAU OPEX up 1.8%, more than half made up on non recurring items

• net acquisitions and disposals 1.3%; and

• revenue mix 3.7%

			Comparison in constant currency	Comparison in constant currency	Comparison in constant currency
			FY16@ CC	FY15 Actual	CC Variance		FY16 Actual
Cost of sales		$369.0 $346.3 Up 6.6% $350.9 $731.1 $693.9 Up 5.4% $696.3 $83.3 $77.9 Up 6.9% $79.2 $80.8 $65.6 Up 23.2% $77.5 $252.1 $236.0 Up 6.8% $236.4
Controllable costs
Personnel
Occupancy
Other Direct
Technology
Total Costs			$1,516.3	$1,419.7	Up 6.8%		$1,440.2
Total Cost / Income Ratio			73.1%	71.8%			73.0%

Note: Corporate operating costs have been allocated and reported under the five main cost categories – cost of sales, personnel, occupancy, other direct and technology. Technology costs include personnel, occupancy and other direct costs attributable to technology services.

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

16

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

Operating costs bridge BAU OPEX including non recurring items up 1.8%

==> picture [638 x 300] intentionally omitted <==

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

1,540
76.1
1,520
1,516.3
1,500
1,480
1,460
52.3
1,440
18.0 1,440.2
1,420
1,419.7 26.3
1,400
1,380
1,360
USD million
FX
costs items) costs
BAU OPEX (including non recurring of disposals with revenue costs @ CC
FY15 Operating Acquisitions net Cost associated related activity FY16 Operating FY16 Operating
----- End of picture text -----

› BAU OPEX includes investment in product development and innovation, increases in regulatory risk and compliance costs, salary increases and non Louisville related rightsizing costs.

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

17

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

Structural cost review commenced

Group wide cost review a key priority

• › External consultants appointed to review:

• Process automation

• Supplier costs

• Productivity; and

• Business simplification measures

Louisville update – net benefits upgraded

	Prior estimate $m	Current estimate $m	Actual % complete	Future estimate % complete at end of FY	Future estimate % complete at end of FY	Future estimate % complete at end of FY	Future estimate % complete at end of FY
			FY16	FY17	FY18	FY19	FY20
One-off project costs to achieve 85-90 80-85 Expected annual cost savings 25-30 unchanged			31% 75% 90% 100% n/a Nil 15% 55% 70% 100%

• › One-off project costs to achieve benefits include the additional operating costs of dual processing, severance and capital expenditure for impacted US facilities together with the related technology requirements

• › Initial FTE target on track with >300 FTE currently in Louisville, targeting >600 FTE by 30 Jun 2017

• › Expected FY17 post-tax management adjustment of USD 16-18 million; FY18 management adjustment project costs are expected to be significantly lower

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

18

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

Cash flows

Strong cash flows fund growth and return strategies

	FY16 Actual	FY15 Actual
Net operating receipts and payments Net interest and dividends Income taxes paid Loan servicing advances (net) Statutory operating cash flows Add back: Loan servicing advances (net) Net operating cash flowsexcludingSLS advances Cash outlay on capital expenditure	$480.2 $523.8 ($50.5) ($47.7) ($57.0) ($59.5) ($68.1) ($44.5)
	$304.6 $372.1 $68.1 $44.5
	$372.7 $416.7 ($25.3) ($28.4)
Free cash flowexcluding SLS advances	$347.4	$388.3
SLS advance funding requirements Cash flow post SLS advance funding Investing cash flows Net cash outlay on MSR purchases and equity investment Net acquisitions & disposals Other Net operating and investing cash flows	($26.7) $31.8
	$320.7 $420.0 ($62.4) ($59.0) ($122.2) ($103.2) ($7.8) ($15.1)
	($192.4) ($177.3)
	$128.3 $242.7

Operating cash flows reflect:

• › Underlying free cash flow of $347.4m in FY16

• › Loan servicing advances sold to a capital partner in 2H16

• › Refer to slide 50 for detailed discussion on SLS cash flows

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

19

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

Balance sheet

Optimising the balance sheet to enhance future returns

	Jun 16	Jun 15	Variance
Current Assets
Non-Current Assets
Total Assets	$3,977.7	$3,801.5	Up 4.6%
Current Liabilities
Non-Current Liabilities
Total Liabilities	$2,869.0	$2,623.8	Up 9.3%
Total Equity	$1,108.7	$1,177.6	Down 5.9%
Net debt1 Net debt to EBITDA ratio1 ROE2 ROIC3

• ^ Includes cash that is classified as an asset held for sale

• 1 Excluding non-recourse SLS Advance debt

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

20 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 less income tax expense)/(net debt + total equity)

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

Capital management

A sign of confidence in our business and future

Share buy-back

• › The Company announced on 18 August 2015 an on-market buy-back having an aggregate value of up to AUD 140 million

• › As at 30 June 2016, the Company had acquired 9,377,069 ordinary shares for a total consideration of AUD 100.6 million at an average price of AUD 10.73 per share

Recycling capital - Sale and leaseback of our global headquarters

• › The Company’s global headquarters in Melbourne was sold during June 2016 in a sale and leaseback arrangement that is expected to complete in September 2016. The gain on sale, net of costs, is circa $40m and will be excluded from management earnings in FY17

Dividend

• › Final dividend of AU 17 cents franked at 20%, makes full year dividend of AU 33 cents up 6.5%, at an average franking of 58.8%

• › A new dividend franking policy was communicated during the year providing shareholders access to maximum allowable franking credits

• › Our short-term franking rate is expected to be in the range of 20% to 30%

• › Full year dividend payout ratio is 43.6%

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

21

FY16 Scorecard FY17 Priorities

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

Strategies and Execution

Aims and Strategy

• US Registries Maintain underlying business profitability and free cashflows

• Preserve market leading share

• Win net new business

• Cross sell additional services to strong and loyal customer base

• US Mortgage Build a significantly larger mortgage Servicing services business to drive profitability and enhanced returns on capital

• Grow Portfolio Size

• Drive optimal mix of MSR, subservicing, ancillary and up/downstream services in the mortgage chain

• Optimise the portfolio by managing run off, delinquencies, advance levels and cost / revenue per loan

• Enhance returns on capital

• › 73% of the Dow, 60% of the S&P 500, 55% of Fortune 500

• › Over 3300 clients, with lost clients to competitors < 1.5% p.a.

• › Average client contract term > 18 years

• › New client wins from IPO / Competitors exceed losses > 2 to 1

• › 43% of clients purchase services from more than one business line

• › Increased average revenue per customer

• › Commenced the program to integrate CMC and build the CoIssue Program to drive scale and mix at competitive prices

• › UPB increased by $17.6bn to $52.9bn

• › Completed 4 excess strip transactions totaling ~ $15bn of UPB

• › 1 non-performing MSR ($4.2bn UPB / $220M in advance debt) sold into an off-balance sheet SPV

• › Management restructure implemented to drive growth of expanded business

• › Maintain market share and external / internal quality scores

• › Execute on Front Office initiatives (pricing initiatives/ cross sell)

• › Drive efficiency initiatives to improve operating margin (Louisville Project / Cost Out)

• › Targeting Private Markets with our product base to target non listed emerging growth customers

• › Drive growth in UPB to deliver greater scale

• Target Monthly net new MSR

• purchases of $500m UPB

• Execute pipeline of non

• performing MSR opportunities

• › Expand capital light businesses: - Fulfilment

  • Mortgage Solutions

  • • Subservicing
  • • CMC ‘Services’

• › Improve operating efficiency: - Process automation - Global Service model - Business simplification

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

22

FY16 Scorecard FY17 Priorities

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

Strategies and Execution

Aims and Strategy

  - UKAR appointment - servicing GBP 30bn book › Execute UKAR business and with an additional GBP 11bn of assets technology integration purchased by Cerebus › Improve operating efficiency: › Increased share from 40% with HML to - Process automation 60% post UKAR - Global service model - Business simplification

  - › Secured two new clients who will originate mortgages driving organic › Increase profitability and cash growth flow by delivering synergies but grow platform to replace UKAR

  - › Fully delivered HML integration plan revenues over time realising planned savings › Support UK Government sales

  - › Capital light servicing model process

• UK Mortgage Build the leading UK mortgage Servicing servicing business while delivering synergies across the enlarged business

• Build market share by attracting bank /non bank lenders and mortgage book opportunities coming to the market

• Plan and commence delivery of synergies across the UKAR business

• Drive profitability

• Employee To build a global full service › Growth in client mandates despite › Continue to redefine our

• Share Plans Employee Plans business to benefit competitor activity. Number of operational model to increase from the structural trend of equity underlying units under administration automation, especially around based remuneration has increased regulatory reconciliation › New Financial Reporting, Tax Mobility, › Drive higher value from post vest

• 1. Invest in product and services to and mobile device solutions being rolled assets either by retaining them grow market share out or partnering with wealth management / broker providers
• 1. Maintain an effective compliance › Double digit revenue growth in Asia and ›

• regime in a low cost manner Canada Continue the technology refresh roll out

• 1. Increase automation to drive › Transaction volumes continue to be operational gearing and improve impacted especially for clients in the › Improve customer satisfaction costs resource sector in UK and Australia
• 1. Diversify client base to minimise › UK Interest rates negatively impacting sector exposure UK SAYE Plans

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

23

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

Hot Topics

Computershare has a measured and considered approach to Blockchain.

Blockchain

In the near to medium term, we will continue to pursue a dual track approach in terms of assessing the commercial value of introducing innovative blockchain services in market adjacencies, while also rigorously defending our existing role and overall market positioning.

In Australia, for example, we are cognisant that ASX’s monopoly on clearing is coming to an end and have been consulting a cross section of the Australian market, including market participants and regulators on the feasibility and demand for potential settlement solutions. Notwithstanding this, we continue to evaluate how best to work with the ASX on an overall technology model to replace CHESS that will benefit the market as a whole, including our core Issuers and their shareholders.

We continue to believe some commentary that blockchain is automatically “bad for Computershare” is ill informed, reflects incomplete analysis and a fundamental misunderstanding of the technology’s impact to our role in the market. Our global presence makes us an attractive partner to blockchain solutions providers and gives us access to a wide range of potential commercial blockchain opportunities.

On 23 June 2016, the UK voted to leave the European Union. It remains unclear exactly when the formal exit process will be triggered or when it will take effect or the terms that will apply post-exit. In the meantime, all the applicable rules and the basis on which our UK businesses operate in the region remain unchanged.

Brexit

In the wake of the vote to the leave the European Union, Sterling has weakened against a range of currencies including the US dollar. The Base Rate of interest in the UK was cut to 0.25% on 4[th] August reflecting concern on the growth prospects for the UK economy.

Whilst these are headwinds, our UK business fundamentals remain the same and we continue to hold good and improving positions in our chosen markets including registry, plans and mortgage services.

Also, whilst there may be some future changes to “passporting rules” that currently enable our UK business to undertake regulated business in the EU, we have other regulated entities in the EU that could undertake that activity and skill sets that are transportable if required to do so in the future.

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

24

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

Conclusions

• › Resilient FY16 performance with Management EPS in line with guidance

  • Total management revenue up 5.0%[1]

  • Management EBITDA excluding margin income up 4.3%[1]

• › Continued track record of robust underlying profitability

  • Management EBITDA excluding both margin income and the impact of exchange rate movements has grown 46.1% since FY13[2]

• › Positioning for sustained earnings growth

  • Investing for growth – mortgage servicing strategy well on track, strengthening Plans

  • Sustain leading position in Registry with ongoing operational efficiencies

  • Structural group wide cost review underway coupled with property rationalisation benefits

• › Shareholder focused capital management

  • Free cash flow (excluding SLS advances) $347.4m

  • AU$105.2m of shares bought back to date. FY16 dividend up by 6.5%

• › Growth outlook – In constant currency, Computershare expects FY17 Management EPS to be slightly up on FY16 with a further update to be provided at the AGM

• › Simpler, more transparent and disciplined CPU emerging with focus on building and protecting scale in core markets to drive operating leverage, profitable growth and improved returns

• › Next steps: Structural cost review and trading updates at AGM

• 1 FY16 results translated to USD at FY15 average exchange rates

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

2 Translated at FY16 average exchange rates and excludes Margin Income

25

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

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

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

Statutory results Financial performance by half year at actual rates Global Registry Maintenance and Plan Managers 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 SLS (US mortgage servicing) cash flows US and UK Mortgage Servicing – UPB and number of loans Exchange rates

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

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

Exchange rates
----- End of picture text -----

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

Statutory results

FY16 FY15	› 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 28. › The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards. Vs FY15 Up 3.4% Up 0.2% Up 0.2% Up2.4% FY16 $1,988.9m (3.2) (0.3) (11.1) ($14.7) $1,974.2m FY16 $157.3m 64.0 68.4 13.7 $146.2m $303.5m
Earnings per share (post NCI) 28.55 cents 27.61 cents Total Revenues $1,988.9m $1,984.0m Total Expenses $1,742.5m $1,738.5m Statutory Net Profit(post NCI) $157.3m $153.6m	Up 3.4% Up 0.2% Up 0.2% Up2.4%
Reconciliation of Statutory Revenue to Management Results	FY16
Total Revenue per statutory results Management Adjustments Marked to Market adjustment on derivatives Gain on sale of Japanese joint venture interest Gain on acquisition Total Management Adjustments Total Revenue per Management Results	$1,988.9m (3.2) (0.3) (11.1)
	($14.7) $1,974.2m
Reconciliation of Statutory NPAT to Management Results	FY16
27 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	$157.3m 64.0 68.4 13.7
	$146.2m
	$303.5m

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

Management adjustment items Appendix 4E Note 3

Management adjustment items net of tax for the year ended 30 June 2016 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 for the year ended 30 June 2016 was $64.0 million. Amortisation of intangibles purchased outside of business combinations (eg, mortgage servicing rights) is included as a charge against management earnings.

Acquisitions and disposals

• › A liability of $47.3 million was recognised for contingent consideration payable to the sellers of Homeloan Management Limited. An acquisition accounting adjustment related to the Registrar and Transfer Company resulted in a benefit of $1.0 million.

• › The finalisation of disposal accounting for the Russian registry business, VEM (a corporate actions bank located in Germany) and the Australian ConnectNow business resulted in a loss of $25.9 million due to a write-off of the associated cumulative translation differences from the foreign currency translation reserve. The cumulative translation differences are only reclassified to profit or loss when the disposal process has been completed and control over a foreign subsidiary is lost. The Russian registry business and VEM were classified as held for sale as at 30 June 2015.

• › A gain of $8.9 million was recorded on acquisition of assets under the mortgage servicing contract with UK Asset Resolution Limited.

• › Acquisition and disposal related expenses of $2.4 million were incurred associated with recent acquisitions and disposals including Gilardi & Co, Capital Markets Cooperative, Homeloan Management Limited, Altavera, SyncBASE and ConnectNow.

• › Restructuring costs of $1.3 million were incurred for the Gilardi & Co, Valiant Trust Company and SyncBASE acquisitions.

• › A property in the UK was written down to fair value less cost of disposal on classification as ‘held for sale’ resulting in a loss of $1.7 million.

• › A gain of $0.3 million was recorded on sale of the Japanese joint venture interest.

Other

• › Costs of $8.5 million were incurred in relation to the major operations rationalisation underway in Louisville, USA.

• › The put option liability re-measurement resulted in an expense of $7.5 million related to the Karvy joint venture arrangement in India.

• › 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 $2.3 million.

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

28

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

Financial performance by half year at actual rates

	2H16	1H16	2H15	1H15	2H14	1H14	2H13	1H13
Total Management Revenue	$1,035.5 $938.7 $1,016.5 $959.5 $1,045.7 $976.9 $1,037.5 $987.6
Operating Costs	$744.5 $695.7 $720.7 $699.0 $771.7 $709.2 $767.6 $747.6
Management EBITDA	$290.3	$242.3	$294.8	$259.3	$273.6	$267.0	$268.4	$241.4
EBITDA Margin %	28.0% 25.8% 29.0% 27.0% 26.2% 27.3% 25.9% 24.4%
Management Profit Before Tax	$235.0 $192.2 $244.2 $211.1 $220.9 $215.0 $213.7 $184.9
Management NPAT	$159.7	$143.8	$172.1	$160.6	$171.5	$163.6	$155.6	$149.3
Management EPS (US cents)	29.11	25.98	30.94	28.88	30.83	29.41	27.98	26.87
Management EPS (AU cents)	39.78	35.96	39.28	32.03	33.93	31.98	27.30	25.97
Statutory EPS (US cents)	13.33	15.22	24.82	2.79	20.13	25.07	11.23	17.02
Net operating cash flows^ Free cash flow^ Days Sales Outstanding Net debt to EBITDA*	$214.5 $158.2 $247.3 $169.4 $221.7 $223.7 $189.5 $170.5 $199.0 $148.4 $229.2 $159.1 $211.6 $217.5 $169.3 $146.9 56 53 48 46 45 42 45 48 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

Significant 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).

Significant 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). 29

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

Global Registry maintenance and Plan Managers revenue

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

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

Registry Maintenance @ CC Plan Managers @ CC
Other Rev
8%
Holder/Broker
MI
paid
14%
27% Issuer Paid
Fee
70%
45%
$798.9m $247.6m
Margin
Income
3%
TX
33%
Oth Rev
9%
Holder/Broker
MI
paid 13%
28% Issuer paid
69%
Fee
$764.1m $234.3m 49%
Margin
Income
3% TX
29%
FY15
FY16 @ CC
----- End of picture text -----

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

30

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

Management revenue & EBITDA Regional Analysis

==> picture [637 x 386] intentionally omitted <==

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

REVENUE BY REGION EBITDA BY REGION
2,500 600
554.1
540.6
532.6
2,022.6 1,976.1 1,974.2 500 87.1 88.0 70.2
2,000
189.5
185.9 165.6
400
1,500
212.2 229.8
905.9 251.8
881.7
965.3
300
1,000 15.0
23.5
107.3 113.1 200 14.0
81.2
327.9 136.8
361.7 364.0 135.5 113.1
500
113.9 100
122.3
124.4
41.3
46.6
45.9
378.1
311.3 273.7
48.2
31.3 36.8
0 0
FY14 FY15 FY16 FY14 FY15 FY16
Australia & NZ Asia UCIA Continental Europe USA Canada Australia & NZ Asia UCIA Continental Europe USA Canada
USD million USD millions
----- End of picture text -----

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

31

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

FY16 Management revenue Regional Analysis

==> picture [663 x 394] intentionally omitted <==

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

400
350
300
250
200
150
100
50
0
Register Corporate Actions Business Services Stakeholder Employee Share Communication Tech & Other
Maintenance Relationship Plans Services Revenue
M'ment
378.0
337.4
USD million
150.5
104.7
97.5 95.5
89.8
78.0
61.1 59.6 61.6 63.6
55.0
36.0 38.1
31.8
23.5 11.3 9.6 0.1 17.9 24.4 0.0 1.6 2.4 7.0 4.2 0.0 14.0 17.3 18.5 18.9 0.0 6.0 20.0 5.6 8.0 0.6 5.7 2.3 15.0 1.8
----- End of picture text -----

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

ANZ Asia UCIA CEU USA Canada

32

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

Australia

==> picture [667 x 483] intentionally omitted <==

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

Management revenue: AUD million
FY14 FY15 FY16
399.8m 357.3m 362.0m
144.0
140.8
132.2
123.3
121.3 121.2
72.8
41.4
32.8 34.6 33.5
29.0
26.0
22.3
19.3
10.8
4.2 3.8
2.0 1.9 2.1
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
FY14 FY15 FY16
33
----- End of picture text -----

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

Hong Kong

Hong Kong	Hong Kong	Hong Kong
Management revenue:HKD million
FY14	FY15	FY16
512.3m	575.4m	597.0m

	384.3
	367.1
	339.2
					118.1
		96.6	92.6		99.3
			76.1	9.1 67.4 16.5 18.6
	Register Maintenance		Corporate Actions	Stakeholder Relationship Mgt Employee Share Plans
34			FY14	FY15	FY16

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

India

India	India	India
Management revenue:INR million
FY14	FY15	FY16
2,426.6m	2,661.1m	2,793.4m

==> picture [562 x 305] intentionally omitted <==

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

2,100.3
1,911.9
1,618.8
662.9
592.7
178.9
86.4 100.4
----- End of picture text -----

==> picture [662 x 273] intentionally omitted <==

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

662.9
628.9
592.7
178.9
86.4 100.4
Register Maintenance Corporate Actions Business Services
FY14 FY15 FY16
35
----- End of picture text -----

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

United States

	United States	United States	United States	United States	United States	United States
	Management revenue:USD million
	FY14		FY15		FY16
	905.9m		881.7m		965.3m
	406.5	402.3								222.0m Mortgage
		378.0							337.4 Services
						262.4	256.0
			69.2	62.5 78.0						51.9	45.0	73.9 55.0		68.8	63.6	31.5	35.0	38.1
																			10.7	12.3	15.0
	Register		Corporate			Business				Stakeholder			Employee Share			Communication			Tech & Other
	Maintenance			Actions		Services				Relationship		Mgt		Plans			Services		Revenue
	36									FY14	FY15		FY16

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

Canada

==> picture [667 x 483] intentionally omitted <==

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

Management revenue: CAD million
FY14 FY15 FY16
202.9m 216.8m 218.9m
82.2 81.5
79.0 78.8 79.2 79.9
25.0
23.9 23.7
20.8
17.8 17.7
7.4
6.5
5.4
2.9 2.9 2.4
0.8 0.7 0.0
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
FY14 FY15 FY16
37
----- End of picture text -----

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

United Kingdom and Channel Islands

==> picture [667 x 483] intentionally omitted <==

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

Management revenue: GBP million
FY14 FY15 FY16
176.4m 203.6m 221.3m
62.7m
Mortgage
Services
101.1
81.0
79.6
64.6
57.3
46.3
44.6
41.8
35.5
8.2
6.9
5.2 1.8 2.0 4.2 3.4 4.4 4.0 3.3 2.9 3.4
Register Corporate Business Stakeholder Employee Share Communication Tech & Other
Maintenance Actions Services Relationship Mgt Plans Services Revenue
FY14 FY15 FY16
38
----- End of picture text -----

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

South Africa

Management revenue:RAND million	Management revenue:RAND million	Management revenue:RAND million
FY14 FY15		FY16
279.8m 244.3m		245.4m
255.2
220.6	217.3
		9.5	7.2	12.2		0.5 14.6 1.1 0.7	15.5	15.1
Register Maintenance		Corporate		Actions		Stakeholder Relationship Mgt Employee Share		Plans
39				FY14	FY15	FY16

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

Germany

Germany	Germany	Germany
Management revenue:EUR million
FY14	FY15	FY16
43.2m	38.6m	36.6m

==> picture [655 x 374] intentionally omitted <==

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

18.1
17.8 17.8
16.1
15.3
14.7
3.1
2.6 2.7
1.2 1.4 1.3
0.9
0.1 0.3
Register Maintenance Corporate Actions Employee Share Plans Communication Services Tech & Other Revenue
FY14 FY15 FY16
----- End of picture text -----

==> picture [10 x 7] intentionally omitted <==

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

40
----- End of picture text -----

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

Technology costs

==> picture [668 x 351] intentionally omitted <==

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

300
11.9% 11.9% 12.0%
12%
250 240.9 236.0 236.4
13.9 14.2 12.7 10%
200
61.8
62.5 65.7
8%
150
6%
91.1 79.0 81.1
100
4%
50
2%
74.1 80.4 76.9
0 0%
FY14 FY15 FY16
Development Infrastructure Maintenance Admin Technology costs as a % of revenue
USD million
----- End of picture text -----

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

41

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

Capital expenditure versus depreciation

==> picture [639 x 351] intentionally omitted <==

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

50
45
38.6
40
2.2
35
8.7 29.9
30
2.5
2.1
25
8.1
19.8
20
1.0
2.5
2.8
15
3.5
25.6
10
16.8
12.5
5
0
FY14 FY15 FY16
Information Technology Communication Services Facilities Occupancy Other Depreciation
USD million
----- End of picture text -----

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

42

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

FY16 client balances Interest rate exposure

Average funds held during FY16

USD 15.7bn

• › CPU had an average of USD 15.7bn of client funds under management during FY16.

• › For 36% (USD 5.7bn) of the FY16 average client funds under management, CPU had no exposure to interest rate movements either as a result of not earning margin income, or receiving a fixed spread on these funds.

• › The remaining 64% (USD 9.9bn) of funds were “exposed” to interest rate movements. For these funds;

• 26% had effective hedging in place (being either derivative or fixed rate deposits).

• 8% was naturally hedged against CPU’s own floating rate debt.

• The remaining 30% was exposed to changes in interest rates.

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

43

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

FY16 client balances

Exposed funds by currency (FY16 average balances)

Average exposed funds balance prior to hedging

Average exposed funds balance net of hedging

==> picture [127 x 38] intentionally omitted <==

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

USD 9.9bn
(USD 15.7bn x 64%)
----- End of picture text -----

USD 4.6bn (USD 15.7bn x 30%)

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

44

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

Client balances

Fixed and floating rate term deposits

7,000 Floating Rate Deposits Fixed Rate Deposits 6,000 5,000 4,000 3,000 2,000 1,000 0 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Fixed rate derivatives 1,200 Derivatives 1,000 800 600 400 200 0 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20

==> picture [49 x 45] intentionally omitted <==

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

45

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

Maturity Dates USD million	Debt Drawn	Committed Debt Facilities		Bank Debt Facility	Private Placement Facility	SLS Advance Facility
FY17 Dec-16 Dec-16 Mar-17 FY18 Jul-17 Feb-18 FY19 Jul-18 Feb-19 FY20 Jul-19 FY22 Feb-22 FY24 Feb-24	116.3 91.9 21.0 449.6 40.0 235.0 70.0 322.0 220.0 220.0	150.0 175.0 21.0 450.0 40.0 235.0 70.0 450.0 220.0 220.0		450.0 450.0	21.0 40.0 235.0 70.0 220.0 220.0	150.0 175.0
TOTAL	$1,785.9	$2,031.0		$900.0	$806.0	$325.0

Debt facility maturity profile

==> picture [678 x 357] intentionally omitted <==

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

500.0
449.6 450.0 450.0
450.0
400.0
350.0
325.0 322.0
300.0
250.0 235.0
220.0 220.0
208.3
200.0
150.0
100.0
70.0
50.0 40.0
21.0
0.0
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
SLS non-recourse advance facilities drawn SLS non-recourse advance facilities USPP Syndicated debt drawn Syndicated debt Facilities
Note: Average debt facility maturity is 2.8 years as at 30 Jun 16
46
USD million
----- End of picture text -----

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

Key financial ratios

	Jun 16	Jun 15	Variance
	USD m	USD m	Jun 16 to Jun 15
Interest Bearing Liabilities	$1,863.3	$1,769.1	5.3%
Less Cash	($526.6)	($604.1)*	(12.8%)
Net Debt	$1,336.7	$1,165.0	14.7%
Management EBITDA	$532.6	$554.1	(3.9%)
Net Financial Indebtedness to EBITDA	2.51 times	2.10 times	Up 0.41 times
Net Financial Indebtedness to EBITDA#	2.12 times	1.86 times	Up 0.26 times

==> picture [328 x 245] intentionally omitted <==

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

12.0 EBITDA Interest Coverage
10.0 10.7
10.2
9.8
9.3
8.0
6.0
4.0
2.0
0.0
1H15 2H15 1H16 2H16
Times
----- End of picture text -----

==> picture [335 x 287] intentionally omitted <==

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

Net Financial Indebtedness to EBITDA
3.0
2.57
2.51
2.5 2.28
2.10
2.0 2.10 2.06 2.12
1.86
1.5
1.0
0.5
0.0
1H15 2H15 1H16 2H16
Net debt (excl. non-recourse SLS Advance debt) to EBITDA ratio
Net debt to EBITDA ratio
Times
----- End of picture text -----

• *Cash includes cash that is classified as an asset held for sale

47 # excludes non-recourse SLS advance debt

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

Effective tax rate

Statutory and management

Tax rate %

==> picture [386 x 319] intentionally omitted <==

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

40%
35.3%
35% 34.0%
30%
27.9%
26.1%
25%
22.4%
21.8%
20%
15%
10%
5%
0%
FY14 FY15 FY16
Statutory Management
----- End of picture text -----

› The increase in the Group’s management effective tax rate from 26.1% to 27.9% is driven by a range of factors including profit mix, non-creditable withholding tax, writing off expiring losses and reduced R&D benefits.

› The Group’s statutory effective tax rate has decreased from 35.3% in FY15 to 34.0% in FY16. FY15 included an asset impairment of $109.5m which is not tax deductible.

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

48

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

Dividend history and franking New policy to maximise franking distribution

==> picture [651 x 345] intentionally omitted <==

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

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

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

49

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

SLS (US mortgage servicing) cash flows

Cash flows have different statutory classifications and can fall across different reporting periods

	FY16 Actual	FY15 Actual	Notes
Loan Servicing Advances (net) Loan Servicing Borrowings (net) SLS advance funding (outflow)/inflow Net cash outlay on MSR purchases and SPV investments Net SLS investment during period	($68.1) ($44.5) Operating cash flow (outflow)/inflow > Loan servicing advances are a working capital requirement of SLS. > Loan servicing advances sold to a capital partner in 2H16. > As the advances are sold to capital partners the working capital will be returned to CPU. $41.4 $76.3 Financing cash flow (outflow)/inflow > Loan servicing advances are funded through a non-recourse borrowing facility. > $35m was drawn down late FY15 which funded 1H16 advance purchases. ($26.7) $31.8 The timing of the financing cash flows and the operating cash flows for a transaction can occur in different reporting periods. ($62.4) ($59.0) Investing cash flow (outflow) > MSR investments are disclosed net of excess strip sales. > An excess strip sale does not always occur in the same reporting period as the MSR purchase. > An SPV deal refers to the sale of the rights to the MSR and associated servicing advances into an SPV in which CPU typically takes a 20% equity stake. ($89.1) ($27.2)
	($89.1)	($27.2)

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

50

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

US and UK Mortgage Servicing - UPB and number of loans

		Performing	Performing	Performing		Non-performing	Non-performing	Non-performing
US Mortgage
Servicing		At 30 Jun 16		At 30 Jun 15		At 30 Jun 16		At 30 Jun 15
Fully-Owned		$4.9BN		$5.0BN		$8.8BN		$8.1BN
MSRs1		24K Loans		21K Loans		92K Loans		97K Loans
Part-Owned MSRs2		Excess strip deals $14.1BN 60K Loans		No excess strip deals		SPV deals $13.6BN 55K Loans		SPV deals $9.6BN 37K Loans
Subservicing3		Minimal $0.5M 1K Loans		$0.1BN 0.2K Loans		$11.0BN 97K Loans		$12.5BN 116K Loans
UK Mortgage
Servicing
Fee for Service3		£64.9BN 574K Loans		£28.8BN 121K Loans		£6.2BN 51K Loans		£5.9BN 29K Loans

1 CPU owns the MSR outright

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

3 Servicing performed on a contractual basis

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

51

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

Exchange rates

› Average exchange rates used to translate profit and loss to US dollars

Currency	FY16	FY15	FY14	FY13	FY12
USD	1.00000	1.00000	1.00000	1.00000	1.00000
AUD 1.37490 1.19208 1.0942 0.9712 0.9608
HKD 7.75858 7.75359 7.7561 7.7561 7.7739
NZD 1.50166 1.28103 1.2176 1.2180 1.2347
INR 66.28639 61.87461 61.5662 54.6508 49.6066
CAD 1.32181 1.16655 1.0706 1.0063 0.9979
GBP 0.67166 0.63239 0.6181 0.6372 0.6288
EUR 0.90395 0.82950 0.7383 0.7752 0.7381
RAND 14.45548 11.31205 10.3530 8.7774 7.6629
RUB 66.85318 48.53311 33.8618 31.2246 29.9949
AED 3.67303 3.67292 3.6731 3.6730 3.6730
DKK 6.74063 6.18363 5.5085 5.7777 5.4915
SEK 8.41380 7.70114 6.5366 6.6043 6.6521

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

52

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

Important notice

Forward-looking statements

• › This announcement may include 'forward-looking statements'. Such statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'outlook', 'guidance' and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forward-looking statements.

• › Such statements are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Computershare. Actual results, performance or achievements may vary materially from any forward-looking statements. Readers are cautioned not to place undue reliance on forwardlooking statements, which are current only as at the date of this announcement.

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

53