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Computershare Limited

MARKET ANNOUNCEMENT

ABN 71 005 485 825 Yarra Falls, 452 Johnston Street Abbotsford Victoria 3067 Australia PO Box 103 Abbotsford Victoria 3067 Australia Telephone 61 3 9415 5000 Facsimile 61 3 9473 2500 www.computershare.com

Date:	27 April 2017
To:	Australian Securities Exchange
Subject:	Investor and Analyst Briefing 2017

Attached are the materials that are being presented to investors and analysts today at Computershare’s annual business briefing session.

A copy of these materials will also be posted on the Computershare website (www.computershare.com.au).

For further information contact:

Michael Brown Investor Relations Ph +61 (0) 400 24 8080 [email protected]

About Computershare Limited (CPU)

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

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

Computershare is represented in all major financial markets and has over 16,000 employees worldwide.

For more information, visit www.computershare.com

Investor and Analyst Briefing Building sustained earnings growth

Stuart Irving CEO

27 April 2017

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Schedule

10.00 – 10.20	Introduction – Conference Centre	Introduction – Conference Centre	Introduction – Conference Centre
10.20 – 11.00	Margin Income Unwrapped – Conference Centre
11.00 – 11.40	Global Registry and Employee Share Plans – Conference Centre
11.50 – 12.30	Blue stream Delivering Efficiencies - Innovation Garage	Orange stream UK Mortgage Servicing - Boardroom	Green stream US Mortgage Servicing - England/Edison
12.30 – 12.35	All streams return to Conference Centre
12.35 – 1.00	Lunch
1.10 – 1.50	Blue stream US Mortgage Servicing - England/Edison	Orange stream Delivering Efficiencies - Innovation Garage	Green stream UK Mortgage Servicing - Boardroom
2.00 – 2.40	Blue stream UK Mortgage Servicing - Boardroom	Orange stream US Mortgage Servicing - England/Edison	Green stream Delivering Efficiencies - Innovation Garage
2.40 – 2.50	All streams return to Conference Centre
2.50 – 3.15	Closing remarks and question time

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FY17 Management EPS Guidance reaffirmed

Outlook

In February with increased confidence, we expected management EPS for FY17 to be between 56 - 58 cents in constant currency (FY16 55.09 cents)

At the November 16 AGM, we expected management EPS to be slightly up on FY16 in constant currency

This outlook assumes that equity markets remain at current levels, interest rate markets perform in line with current market expectations and that FY17 corporate actions revenue is similar to FY16*

Today we are re-affirming

Our constant currency guidance assumes that FY16 average exchange rates are used to translate FY17 earnings to USD. This is also subject to the standard disclosures on forward-looking statements.

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Robust underlying business performance continues

Management EBITDA excluding the impact of margin income and exchange rate movements increased by 10.6% in 1H17 versus pcp

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400
379.3
350 364.4
327.2
300
250
259.7
200
180.7
150 163.3163.3
100
50
0
FY13 FY14 FY15 FY16 1H17
USD millions
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Management EBITDA excluding margin income for each period is translated at FY16 average exchange rates. 1H17 results translated to USD at 1H16 average exchange rates

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All figures throughout this presentation are in USD million unless otherwise stated

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Delivering sustained earnings growth

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Growth Profitability Capital Optionality
Management
› Mortgage Services › Cost management › Strong free cash › Leveraged to rising
program underway flow deleveraging interest rates, tax
› Employee Share
and on track balance sheet cuts, inorganic
Plans
opportunities and
reduced
bureaucracy
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Simpler, more transparent, disciplined and profitable

Margin Income Unwrapped Headwind becoming tailwind

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Margin Income

Headwind becoming tailwind, FY18 expected to be higher than pcp

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18.0
16.0 105.8 16.6
16.3
15.1 15.2 15.0
14.0
14.4
14.0
12.0
89.4
86.8
86.4
10.0
79.0
74.3
8.0
66.6
6.0
4.0
2.0
0.0
1H14 2H14 1H15 2H15 1H16 2H16 1H17
Average balances Margin Income (USD m)
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References throughout this presentation relate to 1H17 unless otherwise stated

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Balances across the business model

Margin income features across a broad spectrum of products in our key markets of US, UK and Canada

› More than 90% of margin income is generated across 3 key currencies

Business Activity	US	Canada
Register Maintenance
Corporate Actions
Employee Share Plans
Business Services - Class Actions
Business Services - Bankruptcy Administration
Business Services - Mortgage Services
Business Services - Corporate Trust
Business Services - Deposit Protection Scheme
Business Services - Voucher Services

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denotes exposed balances

denotes non-exposed balances

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Breakdown of balances

Exposed and hedged

USD 16.6bn Total balances

USD 10.3bn Exposed balances

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USD 4.8bn
Hedged balances
USD 2.8bn USD 2.0bn
Fixed Rate Deposits Fixed Rate Swaps
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Lagged impact from rate changes

USD 6.3bn Non-exposed balances

USD 5.5bn Non-hedged balances USD 1.2bn USD 4.3bn Natural hedge Non-hedged floating rate balances corporate debt Immediate impact from rate changes

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Balances analysis

Majority of balances are exposed to interest rate changes

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Balances that are not
exposed to interest
rate changes because
either they earn a
Not
fixed spread or do not
Exposed
earn interest at all
38%
Exposed
USD6.3bn USD 16.6bn
pre-hedging
(Average for 1H17) 62%
…
Balances impacted
by interest rate
changes
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Exposed and non-exposed balances by business

Yield, balances and margin income breakdown

Business Activity	1H17 Balances (USD billions)	1H17 Balances (USD billions)	Margin Income (USD millions)
	Exposed	Non-exposed
Register Maintenance	2.0	0.4	10.2
Corporate Actions	2.7	1.2	18.4
Employee Share Plans	1.6	0.3	8.7
Business Services	4.0	4.4	29.3
Totals	10.3bn	6.3bn	66.6m
	16.6bn
Margin Income	$52.0m	$14.6m
Average annualised yield	1.01%	0.46%

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Profile of the non-exposed balances

› In 1H17 non-exposed balances represented USD 6.3bn or 38% of the total book
› Non-exposed balances occur across the product spectrum in multiple geographies but are concentrated more heavily in the US and Canada
› Our fee spread is fixed, 3rd parties remain exposed to movements in interest rates and they, not CPU, will benefit from rising rates
› Typical product examples of non-exposed balances include:
Escrows across corporate actions and business services eg. class action administration, bankruptcy administration and corporate trust
Business Services corporate trust products where for regulatory reasons clients require us to hold the funds
› By their very nature, the quantum of these types of funds can move around significantly but since FY09 this component of the book has averaged just under 30% of total balances. Balances typically held for < 1 year
› Growth in recent periods has been underpinned by increases in escrow mandates and our class actions business

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Exposed balances (hedged and un-hedged)

Key driver of margin income upside

Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging	Average exposed balance pre-hedging
	1HFY17	FY16	FY15	FY14	FY13	FY12	FY11	FY10	FY09
Average balances (USD)	10.3bn	9.9bn	10.5bn	10.8bn	11.6bn	9.2bn	7.4bn	6.29bn	4.9bn
% of overall balances	62%	64%	69%	76%	77%	67%	72%	74%	72%

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Assuming an
increase of 100bps
on our exposed
balances (USD
5.5bn) CPU would
generate an
additional $55m
annualised
EBITDA
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46%
54% USD 10.3bn
USD 4.8bn
USD 5.5bn
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Balances that remained exposed to changes in interest rates

Balances that were fixed via swaps and fixed rate deposits

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CPU floating rate debt will operate as a natural hedge against exposed balances, at Profit before Tax the impact is unchanged for 1H17

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Breakdown of exposed balances by currency

Currently most exposed to USD rates though GBP and CAD remain important

Average exposed balances hedged

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CAD
13%
USD
USD 4.8bn
46%
(USD 10.3bn x 46%)
GBP
41%
Average exposed balances un-hedged
Other AUD
8% 7%
CAD
12%
USD 5.5bn
(USD 10.3bn x 54%)
USD GBP
48% 25%
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Average exposed balances prior to hedging

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Other
AUD
4%
4%
CAD
13%
USD 10.3bn
USD (USD 16.6bn x 62%)
47%
GBP
32%
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9 Average balances during 1H17

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Profile of our swap and deposit book

Management of exposed balances

Treasury management

Mark to market commentary

› Swaps: overall positions can be replaced at similar levels – no cliff
› Treasury teams are actively managing exposed balances within policy guidelines
› Fixed and floating rate deposits: some reinvestment difference in Canada and the UK but higher rates available in USA
› Floating rate term deposits enable us to achieve a premium yield compared to at call rates while retaining exposure to a higher rate environment
› We expect margin income to increase in FY18 underpinned by US interest rate rises
› Fixed rate swaps give greater flexibility on liquidity with reduced credit risks
› In a low rate environment (bottom of the cycle) floating rate deposits and short duration swaps will feature more heavily to ensure exposure to a change in cycle
› In a higher rate environment, increased use of fixed rate swaps or fixed rate deposits with longer duration would be typical

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Profile of our swap and fixed rate deposit book

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

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5,000
4,500
4,000
Fixed Rate Deposits DerivativesSwaps
3,500
c.80% of hedges
3,000
expire by Nov 2017
2,500
2,000
1,500
1,000
500
0
Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
USD Million
----- End of picture text -----

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Position at 31 Dec 2016

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Duration – enhancing yield

Stability of balances facilitates long term depositing

› Floating rate deposits are included in both exposed and non-exposed balances

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5,000
4,000
3,000
2,000
1,000
0
Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
USD Million
----- End of picture text -----

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Governance and sensitivities

Our approach to managing balances

Permissible counterparties

Counterparty Universe:

› Either directed or permitted by client (eg. list of approved counterparties or ratings requirement)
› If not directed, policy mandates that funds be held with strong investment grade banks with limits on exposure to individual counterparty with duration limit overlay
› Weekly compliance reporting to senior management detailing all balances by both counterparty and duration

Liquidity management

› All products are managed to ensure all liquidity requirements are met
› Policy mandates minimum amounts that are required to be at call and maximum limits at various durations
› Stability of balances enable terming of balances - majority of these balances have one to two year duration
› Given significant amounts that will be at call at any given time bank overnight deposit rates are important

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Governance and sensitivities

Our approach to managing balances

Interest rate movements

› Managed in accordance with board approved policy which amongst other things deals with the minimum and maximum hedging parameters of our “core exposure”

› The core exposure is determined at product level based on the analysis of historical patterns of minimum of predictable exposed balance levels

› Strong governance framework exists for approval of swaps and fixed rate deposit positions

Opportunities and challenges

› Balances have grown substantially over recent years driven by organic growth and new products
› Factors that could impact on balances levels in the future are:
› Client mandate wins or losses
› Market activity levels
› And to a lesser extent faster payment methods in some regions where cheques remain prevalent

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Headwind turning into tailwind

After a sustained period of interest rate declines rate curves are now improving

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%
6.00
5.00
USD
4.00
3.00
2.00
1.00
-
%
7.00
6.00
5.00
GBP
4.00
3.00
2.00
1.00
-
%
6.00
5.00
CAD 4.00
3.00
2.00
1.00
-
----- End of picture text -----

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Conclusions

$16.6bn

Growing 3rd party balances

Yield enhanced

Disciplined use of swaps and term deposits to enhance yield

Tailwind

FY18 Margin income expected to increase

No cliff/no lockout

No material impact from expiring hedges. Short duration book ensure benefits as rates rise

$10.3bn

Balances exposed to rates; immediate and lagged benefits

1 % = $55m EBITDA

$55m annualised EBITDA benefit from 1% increase on exposed un-hedged balances

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Global Registry

Driving margin growth

Naz Sarkar

CEO - United Kingdom, Channel Islands, Ireland and Africa

27 April 2017

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Global Registry

Driving margin growth

› Our strategic aim is to continue to be the leading global provider of registry services and drive margin growth by developing innovative solutions, cross-selling services and increasing operational efficiency
› Execution priorities:
Develop new income streams including: non-issuer paid, ancillary services, private markets
Leverage great client relationships to up-sell and cross-sell services
Centralisation of back office services and shared services
Process automation
› Regulator / competitor pressure represents a challenging environment in which to deliver both top line growth and cost reduction
› However our deep market understanding, global franchise and strong track record in innovation and efficiency / cost reduction all lend themselves to meeting the challenge
› Successful execution is expected to drive continued margin improvement

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Global Registry

Robust business generating high quality earnings, strong cash flow and improving margin

Management Revenue by Region

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ANZ
14%
ASIA
8%
USD
892.4m
North Europe
America 17%
61%
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----- Start of picture text -----

ANZ
14%
ASIA
8%
USD
893.4m
North
America Europe
17%
61%
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----- Start of picture text -----

ANZ
14%
ASIA
8%
USD
868.3m
North Europe
America 16%
62%
44% of Global
Management Revenue
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47.7% of Global
Management Revenue
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48.3% of Global Management Revenue

FY15 @ CC

FY14 @ CC

FY16

Management Revenue by Type

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

Corp Corp
Actions Actions
16% 15%
USD
Holder/ Holder/ USD
Broker 892.4m Issuer Broker 893.4m Issuer
Paid Paid Paid Paid
23% 58% 24% 58%
Margin Margin
Income Income
3% 3%
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----- Start of picture text -----

Corp
Actions
16%
USD
Holder/
Broker 868.3m Issuer
Paid Paid
23% 58%
Margin
Income
3%
----- End of picture text -----

Management EBITDA margin 27.5% Management EBITDA margin 28.8%

Management EBITDA margin 30.6%

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FY14 and FY15 results are translated at FY16 average exchange rates. 3 Management EBITDA margin = Management EBITDA divided by Management Revenue

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Global Registry

No. 1 or 2 by size in focus markets

NORTH AMERICA Largest provider in US 2,800 clients & 2 ADR banks (3,000 ADRs) Largest provider in Canada 2,900 clients

Major Indices

51% Fortune Global 500* 73% Dow Jones 30 30% FTSE 350 50% ASX 200 65% TSX 78% HSI

Excluding markets where CPU does not operate

EMEA

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

No.2 in UK; largest provider in Jersey, Ireland,
South Africa, Italy, Denmark & Switzerland
Largest AGM Services provider in Germany &
Netherlands; No. 2 in Sweden
1,840 clients in UCIA; 760 clients in Continental
Europe
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HONG KONG 2[nd] largest provider 879 clients

AUSTRALIA & NEW ZEALAND Largest provider in both markets 944 clients in Australia 240 clients in New Zealand

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Global Registry

Large global issuers

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Global Registry

Low volatility in wins/losses and retentions in all markets

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EMEA
CANADA
0.2% 1.0%
0.6% 2.4%
HONG KONG
1.3%
USA
0.1%
1.5%
1.2%
AUSTRALIA/NEW ZEALAND
% wins or losses calculated as net
number of wins & losses compared
0.6% 1.7%
to total clients in 1H17
% retentions calculated as number
of competitive retentions compared
to total clients in 1H17
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Global Registry

Opportunities for growth through innovation

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

Top line growth - Examples Global franchise
Corporate Actions
Non-issuer paid Additional services
Global Capital Markets
Premium Transfer Service (US) Dividend Account Service (HK) Georgeson
Governance Services
Investor Trade (ANZ) Demutualisation Services (CAN)
Executor Services (UK) Virtual / Hybrid AGMs (ALL)
Cost out
opportunities
New revenue opportunities
Helping prepare private companies for modern Investor Relations
Louisville
Increasing number of private market clients including REITS
Operational efficiencies
Opportunities to cross-sell beyond pure registry (Corporate Trust, Virtual
Meetings, Compliance and Governance Solutions) Process automation
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Global Registry

Changing market landscape creates challenges and opportunities

Competition and market
› No new entrants but examples of existing providers being sold or looking to sell
› We continue to operate in competitive markets
› Limited switch business in all markets › Interest rates at historically low levels impacting Margin Income
› Lower corporate action activity levels
Market structure
› Revenue model driven by shareholder numbers which remain stable or growing in Europe, Asia, Canada and Australia
› Attrition is a factor in some markets (notably US) driven by M&A, competition and market structure
› Actively involved in market structure changes in Hong Kong & Australia
› Blockchain/Distributed Ledgers: previous position remains unchanged
› Strong global pipeline of “spin offs”/demergers driving revenue opportunities

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Global Registry

Delivering positive margin jaws despite shareholder attrition

› Attrition is a factor in some markets and is a function of M&A, competition and market structure
› In the US for example, shareholder volumes fell by 1.6m (-8.6%) in 2016 to 16.6m, driven by:
Switch to competitors: 0.85m holders, mostly banking relationship driven
M&A: 0.3m holders
Underlying shareholder attrition: 0.45m holders
› The rate of underlying shareholder attrition in the US reduced from 5.1% in 2015 to 3.6% in 2016, back in line with historical levels
› In other regions, shareholder numbers are stable or growing
› In all cases we will address the impact of attrition through innovation and new revenue streams

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Employee Share Plans Building a global growth engine

Naz Sarkar

CEO - United Kingdom, Channel Islands, Ireland and Africa

27 April 2017

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Global Employee Share Plans

Building a global growth engine

› Our strategic aim is to combine best-in-class service and technology in order to grow our client base and maximise the value of assets under management; and drive strong revenue and earnings growth
› Well-placed to continue to benefit from positive structural trends (equity as a growing part of compensation) and cyclical recovery (rising share prices in local currencies). Combination of recurring issuer paid revenues and employee paid transactional fees
› Execution priorities:
Implement new front end web interface
Roll out data analytics and new reporting capabilities
Complete current service improvement programme, including process automation
› Regulator / competitor pressure represents a challenging environment in which to deliver both revenue growth and cost reduction
› However our full service capability, deep market understanding, global franchise and strong track record in innovation and efficiency / cost reduction all lend themselves to meeting the challenge
› Successful execution will optimise the base from which we can profit from equity market growth and interest rate rises

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Global Employee Share Plans

Driving growth through increased core fees and recovery in transactional fees

Management Revenue by Region

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ANZ ANZ ANZ
8% ASIA 7% ASIA 6% ASIA
4% 6% 8%
North North North Management
America37% USD America36% USD America37% USD Revenue
239.6m 235m 222.2m
USD 114.4m
(+9.1% vs.
Europe Europe Europe 1H16)
51% 51% 49%
13% of Global 12.6% of Global 11.3% of Global
Management Revenue Management Revenue Management Revenue
----- End of picture text -----

FY14 @ CC

FY15 @ CC

FY16

1H17

Management Revenue by Type

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Oth Rev Oth Rev Oth Rev
7% 7% 8%
Margin Margin Margin
Income Income Income
16% 14% 13%
USD Issuer Fees USD Issuer Fees USD Issuer
239.6m 44% 45% Fees
235m 222.2m 50%
Dealing
Dealing Dealing & FX
& FX & FX 29%
33% 34%
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----- Start of picture text -----

Transactional
Revenue
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----- Start of picture text -----

USD 40.5m
(+39.2% vs.
1H16)
----- End of picture text -----

Management EBITDA margin 34.6% Management EBITDA margin 30.3% Management EBITDA margin 25.4%

FY14 and FY15 results are translated at FY16 average exchange rates. 1H17 results translated to USD at 1H16 average exchange rates 12 Management EBITDA margin= Management EBITDA divided by Management Revenue

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Global Employee Share Plans

Unique capability to maximise structural growth opportunity

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

The % of European
companies having
employee share plans
has increased from 65%
in 2006 to 86% in 2016
Number of companies
using Performance
Awards has increased in
the US from 51.7% to
69.3% from 2010 to 2014
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----- Start of picture text -----

Contributory and
award based
share plans
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CPU leverages local knowledge, technology and full service expertise to support complex global requirements

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Global Employee Share Plans

No. 1 in focus markets

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EUROPE
USA / CANADA
Largest provider
Largest provider of Contributory
536 clients
Schemes in both markets
335 clients in US; 206 clients in
Canada
HONG KONG
Largest provider
Major Indices
166 clients
25% Fortune Global 500
40% Dow Jones 30
43% FTSE 100
AUSTRALIA &
NEW ZEALAND
40% Stoxx Euro 50
Largest provider
24% ASX 200
100 clients
5% TSX
24% HSI
Excluding markets where CPU does not operate
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Global Employee Share Plans

Pre and post-vest earnings potential

› Use of Trust or Nominee structures (fee income)

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

Plan launch and
communication
Plan
Post vesting administration and
servicing
Reporting and
Vesting
analytics
----- End of picture text -----

› Full range of communication services (fee income)
› Driving core fee revenue
› Regular dealing revenue as shares are acquired into plans
› Margin income on particular plans
› Corporate Actions
› Plan performance reporting
› Financial Reporting to support Issuer disclosures (cross-sell fees)
› Tax Reporting
› Analytics to drive plan design and communication
› Sale, part sale and hold services driving dealing and FX revenue
› On-going hold services, re-investment services and dealing driving dealing and FX revenue
› Issuer services for those with postvest clawback rules

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Global Employee Share Plans

Latent earnings potential – UK post-vest assets under management

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14%
12
23%
Units (Bn)
10 Value GBP (Bn)
8
6
4
2
0
Jun 15 Jun 16 Feb 17
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Global Employee Share Plans

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Europe
[O/S]
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Large global issuers

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Global Employee Share Plans

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Wins, losses & retentions EUROPE
CANADA 1.1% 6.1%
1.5% 1.0%
HONG KONG
0.6%
USA
1.2%
6.3%
0.0%
% wins or losses calculated as net
AUSTRALIA / NEW ZEALAND number of wins & losses compared
to total clients in 1H17
5.0% 2.0% % retentions calculated as number
of competitive retentions compared
to total clients in 1H17
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Global Employee Share Plans

Investment in customer facing technologies and product refreshes

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Market leading innovation Global franchise
Extending the value chain by
retaining the assets
State of the art New IFRS Reporting Insightful data
reporting suites Capabilities analytics
Cross-sell and up-sell
opportunities
Other Group services
Cost out
opportunities
Implementing new front-end interface
Operational efficiencies
Enhancing the employee experience with increased usability
Positive issuer feedback (notably in Asia), Process automation
full global roll out has commenced
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Global Employee Share Plans

Well-placed to deliver growth

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Competition Market
› ›
Competition falls into various categories: Continue to diversify client base by
executing our growth strategy (no industry
segment accounts for >21% of EMEA
›
Wealth managers clients)
› ›
SaaS providers Service model based on providing regulated
services in multiple jurisdictions
›
Local full service providers
›
Exposure to global equity markets leading
to volatility in dealing and FX commissions
›
Global full service providers
›
Interest rates impacting UK ‘Save-As-You-
›
CPU’s offering combines technology, Earn’ margin income
regulatory compliance and deep sector
knowledge
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We are uniquely placed to leverage our global network, market knowledge and unique service model to meet clients’ needs

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Building the UK Mortgage Services Growth Engine

Andrew Jones

CEO – UK Mortgage Services 27 April 2017

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Executive summary

Building the UK Mortgage Services growth engine

› UKAR contract remains on track to deliver £600m of revenue and £100m of PBT

UKAR contract performing well

› Key risks identified as part of the UKAR appointment have decreased in intensity

› Circa 55% of the UKAR book has now been sold and all servicing has been retained

› Integration of HML and UKAR has progressed faster than initially expected

Integration ahead of plan

› Process to consolidate all mortgages onto a single scalable platform is now underway and will complete by mid 2019
› Contracts signed with Sainsbury’s Bank, Vida Homeloans and a leading high street retailer Heads of terms signed with a leading Investment Bank

Success with challenger banks

› These new contracts are expected to deliver £20bn of UPB by FY22

› By around FY20/21 we would expect the growth of these new clients to exceed book run-off
› UK Retail Banks remain under cost pressure with average RoE still well below pre-crisis levels

Opportunity with retail banks

› Our scale and deep content knowledge leave us well placed to exploit the emerging structural outsourcing opportunities that we believe will emerge

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Our Mortgage Servicing journey

Through the combination of HML and UKAR, Computershare now services £66bn of mortgages in the UK

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1988 2009 2014 2015 2016 2017 Homeloan HML acquires Computershare Acquisition of Topaz UKAR appointment Contracts secured Management Scarborough acquires HML Finance Limited secured with Blackstone and Limited (HML) Mortgage Services from RBS – Prudential as UKAR founded in the UK (SMS) as part of the extension of our sells further Contracts secured as part of the merger of the capability to include £11.8bn of assets with Cerberus and Skipton Building Skipton and master servicing TSB as UKAR sells Society Scarborough circa £13bn of Building Societies assets

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Our UK Mortgage Servicing business

Computershare is the largest third party mortgage servicer in the UK with over 60% market share

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The UK’s
largest
Mortgage
Servicer
58
Clients
600k MORTGAGES


35k accounts in arrears
The highest Mortgage Servicer
ratings globally

Regulated by and
compliant with
RECEIVE OVER MAKE OVER
Financial Conduct
102,000 170,000
Authority
INBOUND CALLS OUTBOUND CALLS
(FCA)
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Our services

The combination of the HML and UKAR platforms leaves us well placed to service the end-to-end mortgage life cycle

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Origination
Support
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Securitisation
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Servicing
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----- Start of picture text -----

Master
Servicing
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----- Start of picture text -----

Arrears
Management
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Loss
Recovery
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Quality and Risk
Management
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Platform and IT Analytics Change delivery development

What we don’t do: We never take a financial stake in the portfolios that we manage nor do we facilitate securitisations. We work with third parties to perform field visits, complete valuations and sell / manage repossessed property rather than doing this work ourselves.

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UKAR contract performing well

The UKAR contract continues to perform well with the key risks that we identified as part of the transaction decreasing in intensity since June 2016

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Change Since
Key risks
June 2016
Financial returns › We remain on track to deliver £600m of revenue and £100m of PBT over the term of the contract =
Contract extension › Option still exists for UKAR appointment to be extended beyond 7 years =
› Revenues from performance based pricing have been in line with expectations. This model ensures
Performance
based pricing that CPU’s objectives are aligned with the UK government’s objective of increasing the value of =
assets being serviced
›
The opening balance in June 2016 was slightly lower than expected and CPU was compensated for
Redemption rate
this. The rate of asset run-off is currently lower than we modelled in our investment case.
›
Circa 55% of the UKAR portfolio has now been sold through Neptune (£13bn) and Ripon (£11.8bn)
Future asset sales ›
CPU has retained servicing as part of these transactions
›
Mortgages have been acquired by Cerberus, Blackstone, TSB and Prudential who are all now CPU clients =
›
UKAR will continue to sell mortgages and CPU will work to retain servicing of divested portfolios
›
CPU is well placed to retain servicing given incumbency, scale and complexity of portfolios
›
Consent has now been received from UKAR to migrate all servicing onto the HML iConnect
Integration platform. Delivery of integration benefits remain on track and costs of integration are in line
with expectations
Service credits › In excess of 99% of service levels are being met with no material service credits paid
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Integrating HML and UKAR

Integration of HML and UKAR has progressed faster than expected and work has now commenced to consolidate all of the mortgages that we manage onto a single platform

› Significant progress has been made since completion of the UKAR transaction in June 2016:

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CULTURE

More than 300 roles have been removed in FY17 (pre new business)

A common culture of working together underpinned by a shared set of values and behaviours.

Single management team has been formed
HML Glasgow office will close in June 2017

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Sainsbury’s Bank and Vida Homeloans now live

REWARD AND

Single set of Head Office systems deployed across whole business

RECOGNITION

A standard approach for colleague recognition, reward and development.

› The next phase of the Integration Programme is focused on migrating all mortgages onto the HML iConnect platform
› Programme teams have been fully mobilised and a clear delivery plan is in place

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SYSTEMS

Common systems for all colleagues and clients across all CLS locations.

› Scope of the migration work will include migration of circa £40bn of mortgages, transfer of IT Services from UKAR’s existing data centre and re-platforming of a number of supporting applications
› Migrations will take place on a phased basis during FY18 and FY19

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PROCESSES

› All integration work is expected to be completed by mid 2019

Consistent processes and ways of working for all client facing and internal activity.

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Growth opportunities

Positive progress has been made in the last 12 months in both the Challenger Bank and Asset Trader segments of the mortgage outsourcing market. Our focus is now moving to the Retail Banking sector.

Challenger Banks

Retail Bank Outsourcing

Asset Traders

› RoE challenge (10.6% post-crisis versus 16.9% pre-crisis)

› “Wall of cash”

› Non high street lenders expected to return to pre-crisis market share – 10-15%

› Non core bank assets yet to be sold › Government disposals › Significant trading still expected – circa £50-100bn

› Volume of regulatory change means closed books on legacy platforms are expensive to maintain › Focus on digital banking

› Undersupplied demand even after public policy changes › High cost of entry

› Partly defensive play
› TSB

› Sainsbury’s Bank › Vida Homeloans

› Cerberus
› Prudential
› BAWAG

› High Street Retailer › Investment Bank (Heads of Terms)

› Blackstone

› Lower cost to serve driven by scale and single platform › Digital offering

› Digital offering

› Existing relationships with most major asset acquirers

› Transactional cost model

› Track record of successful launches › Recognised for deep content knowledge

› Proven migration and securitisation experience › Lower cost to serve driven by scale

› Proven migration experience › Robust approach to risk and compliance
› None

› Acenden – GE assets via Blackstone (c. £7bn)

› None

› Capita assets ownership under review

› Capita contract under review

› Target acquisition of Commercial First

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Challenger Banks

We expect our new Challenger Bank contracts to deliver £20bn of UPB by FY22

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Challenger Bank net lending Challenger Bank growth profile Challenger Bank best buy
2014 -15 positioning
Source: Council of Mortgage Lenders Source: CML Economics Source: KPMG Challenger Bank Annual Results 2016
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› Challenger banks that have launched in recent years have been able to originate £5bn-£6bn over a 4-5 year period in challenging market conditions and with relatively high funding costs
› We believe that the high street brands that stand behind two of the clients that we are working with will help to drive further volume as will the lower cost of funding that is available to these clients
› Challenger banks grew gross lending by 56% in 2015 versus banks that grew gross lending by 4% and building societies who grew by 9%
› The vast majority of the growth in net mortgage lending in recent years has been driven by the challenger banks. As a result of this growth we are seeing the share of lending taken by non high street lenders gradually return towards pre-crisis levels
› The growth of the challenger bank sector is driven by the willingness of these lenders to position themselves at the top of the best buy tables driven in part by their lower cost structures (average cost to income for challenger banks is 56.9% versus 80.6% for the Top 5) and also by their more flexible lending criteria (e.g. Aldermore have an age limit of 85 years versus a market norm of 70-75 years)

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Retail banking opportunity

Opportunities exist with both the larger retail banks and also with mid tier players

Global banking industry average Return on Equity

UK Retail Banks UPB

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Source: Bain & Company, “The return of corporate strategy in banking”

› The vast majority of the 91% of the UK mortgage market that is not outsourced is sat with the retail banks

Driver for larger Driver for mid tier Potential for lenders to players to smaller outsource closed outsource their players to books on legacy entire mortgage participate in platforms where portfolios in order a shared cost of to gain the services type maintaining benefits of scale model regulatory and address the addressing compliance is high RoE challenge both cost and cost savings and of over 30% can resourcing be achieved challenges

› Most banks have already undertaken significant restructuring to stave off the decline in RoE and to meet capital adequacy requirements
› Yet RoE continues to decline as net margins have reduced, the cost of regulation has increased and fee income has come under pressure
› Challenger banks with lower cost digital infrastructure have also continued to take market share
› This is driving the retail banks to look at transformational outsourcing opportunities

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Stable regulatory landscape

The volume and pace of regulatory change in the UK continues to increase and is a strong driver for retail banks to consider outsourcing as a route to reducing cost through platform consolidation

The way that customers in mortgage arrears are dealt with continues to be key area of focus for regulators

Regulatory environment in the UK is well established and the position of TPMAs is well understood

There continues to be a steady stream of regulatory initiatives that drive both project and operational initiatives

Whilst both the client and Computershare are typically regulated the responsibility for the way customers are treated sits with the client

Computershare provides a Master Servicing offering through TOPAZ where Computershare takes full regulatory responsibility for the way that customers are treated. Topaz is on track to be overseeing a back book of circa £13bn that is serviced by Computershare

Being Master Servicer offers the opportunity to earn an incremental premium and also to deliver a more standardised operating model

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Conclusions

Building the UK Mortgage Services growth engine

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1
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UKAR contract performing well

The risks associated with the UKAR contract have reduced in intensity and the contract remains on track to deliver £600m of revenue and £100m of PBT. Circa 55% of the UKAR book has been sold and all servicing has been retained.

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3
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Success with challenger banks

The challenger bank clients that we have won will deliver £20bn of UPB by FY22. Over time the growth of these clients is expected to exceed the rate of book runoff.

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2
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Integration ahead of plan

Synergies are being realised slightly faster than expected with over 300 roles removed in FY17 (pre new business) and our Glasgow office due to close in June 2017. The project to consolidate onto a single platform is now underway.

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4
----- End of picture text -----

Opportunity with retail banks

Our scale and deep content knowledge leave us well placed to exploit the emerging structural outsourcing opportunity with retail banks

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US Mortgage Services

Execution on track for scale and anticipated returns

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Executive summary

Execution on track for scale and anticipated returns

Compelling market dynamics create material opportunity for CPU

Attractive industry we know well that aligns with our core strengths

Addition of scale combined with operational effectiveness initiatives positions us for anticipated returns

Deployment of capital adds further differentiation and aids returns profile

Building competitive differentiation through focus on servicing quality, technology and product offering

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Point of reflection at scale (USD 100bn UPB). Financial returns at scale re-affirmed

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Key execution priorities for FY17

What we said we’d do

CMC Clients and Technology Regulatory Integration opportunities compliance › › › › Co-issue program Two major legacy Building our new No major expanded and MSR acquisitions loss mitigation developments delivering OVER closed system – has been › Impact of new
USD 500m UPB › Three performing major focus and administration per month will go live June sub-servicing remains unclear
› › Integrated loan opportunities won Expected to boarding function › Private label subdeliver operational created in Denver efficiencies, servicing solution reduce risk and
› Shared services launched to improve speed to
and IT functions capitalise on CMC market
combined opportunity ›
› First process Third party automation
Mortgage savings identified
Solutions offering launched – first wins secured

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Mortgage Servicing expertise

Computershare offers a full range of services across the mortgage value chain

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Trading
Recapture Fulfil
----- End of picture text -----

Trade, Co-issue, Capital Market Services, Recapture

Enable a nationwide network of mortgage bankers to leverage their collective power to receive better product, service, pricing and liquidity solutions during the processing, sale and servicing of mortgages.

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Fulfil, Diligence

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Mortgage
Solutions
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----- Start of picture text -----

Co-issue
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Provide mortgage loan fulfillment and closed loan review (due diligence) services.

Service

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Independent servicer of residential loans including asset conversion, loan administration, loss mitigation, default management and no-equity recovery services.

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Capital
Market Diligence
Services
Service
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Mortgage Solutions

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Provides real estate asset management and valuation solutions with a proven track record in asset marketing and disposition services through its partner network of 20,000 real estate agents.

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Building our platform for growth

Diversified business maximises overall returns

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High
Non-
performing
owned MSR
Performing
owned MSR
CAPITAL
INTENSITY
Non-
Performing
sub-
servicing
Capital
Mortgage
Markets
Solutions
Services
Execution
Performing Loan -only
sub- Fulfilment & Trading
servicing
Low Diligence
Low High
MARGIN
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Financial disclosure

Revenue breakdown / 1HFY17 business segment financials

US Mortgage Services 1H17 revenue composition

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Other Fees
27%
Base Servicing
Fees
51%
$123.7m
Servicing
Related Fees
22%
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Base fees

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

Servicing related fees

Additional fees received from servicing a loan
› Loss mitigation fees e.g. for loan modifications
› Ancillary Fees e.g. late fees
› Margin income

Other service fees

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

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Building our platform for growth

Three key requirements to hit scale in FY20

Grow scale

› Targeting market share 1-1.5%
› We see scale as UPB c. USD 100 bn

Get the right mix

› Owned MSR and sub-serviced
› Performing and Non-performing
› Ancillary and up/downstream business that support core servicing business

Optimise the portfolio

› Prepayment risk, borrowing rate and advance levels, delinquency levels
› Targeting c. 20% PBT margin

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Current portfolio c. USD 59bn (April 2017) Substantial market opportunity to deliver portfolio growth

Active strategies in place to deliver on all objectives

Operational programs in place to deliver expected level of portfolio performance

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Building our platform for growth

5 strategic pillars to deliver scale

Capital light model

Growth in fee based business

Optimising our portfolio

› Leverage MSR purchases to drive new business

 - › Portfolio performance measurement and management

› Multiple service offerings expand client
- opportunities, create stickiness and enhance returns
› Capital partners

› Manage prepayment risk through hedging, recapture, pricing, and customer selection

› Excess structures
› Advance financing

Drive MSR growth

› CMC Co-Issue
› Legacy special servicing opportunities

Operational effectiveness

› Workflow and process automation
› Offshoring
› Channel management
› CPU infrastructure

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Industry landscape

Market dynamics create compelling opportunity for CPU

› USD 10 Trillion outstanding mortgage volume

Market size

› Over USD 1 Trillion in annual new origination
› CPU targeting a fraction of share
› Three of four major listed servicers have had or are facing major regulatory or financial challenges

Dislocation amongst Tier 1 Non-Bank Servicers

› Creates room for a high quality servicer to emerge

Continued shift to non-banks High quality providers well-placed

› Non-banks now service over 25% of outstanding mortgages
› Creates confidence that potential for substantial growth for CPU exists
› Do not want to be reliant on a single servicing outlet

Concentration risk concerns of major client groups

› Coupled with dislocation above, creates opportunity for a new player of size / credibility to emerge
›
Substantial fragmentation Likely to see consolidation driven by need for scale, increased at smaller end of market regulatory burden and capital required to retain servicing

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Competitive strengths

Consistent with Computershare’s compliance culture

Servicing Growth Capital Scale CPU quality profile › Upgraded by › New servicing in › Do not originate › Materially › Has scale, Moodys & Fitch manageable loans - credit smaller than resources and in past year, proportions risk substantially listed peers – competencies S&P re-affirmed › Co-issue reduced and do more that drive ability not compete manageable yet to create
› New program delivers with customers substantial material
investments in regular flow and › opportunity efficiencies
systems and helps manage Ability to deploy remains
process will run-off capital › Track record help improve › differentiates us and experience Mix of servicing
further from pure subin operating in and ancillary servicers and regulated
› Track record in business enhances markets around
special enhances returns the world servicing/ returns and performance creates › Conservatively improvement ‘stickiness’ leveraged
› Track record in special servicing/ performance improvement

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Our business at scale

Re-affirming financial returns

Measure	What it looks like	How we get there	How we get there
VOLUME	UPB > USD 100bn	›	Continue to grow out CMC Co-Issue
	Market share 1-1.5%		program
		›	Execute on legacy opportunities in
			pipeline
		›	Build up sub-servicing portfolio
MIX	c. 70/30 Servicing v Fee Based business	›	Drive growth in 3rd party ancillary
	c. 50/50 Owned v Sub-Serviced		businesses
	c. 40/60 Non-performing v Performing	›	Leverage capital deployment to drive out
			sub-servicing opportunities
RETURNS	PBT c. 20%	›	Add scale as per above
	Free cash flow RoIC 12-14%	›	MSR pricing broadly unchanged
		›	Deliver on margin expansion plans

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Priorities for next twelve months

Where we will make progress to deliver on our plan

› Improvement in operating margin through increasingly scalable platform
› Initiatives include workflow and process automation, productivity management programs, borrower communication channels and offshoring

Margin expansion

› A number of attractive legacy opportunities – both sub-servicing and owned MSR
› Expect to increase CMC flow to c. USD 1bn UPB a month
› Targeting a doubling in loan fulfilment volume (Altavera)

Execute on pipeline

› Leveraging existing Valuation and Title capabilities for third parties
› Capital light – enhances RoIC and margin › Substantial market to tackle

Grow out 3[rd] party solutions business

› Leverage capital deployment to drive sub-servicing volumes
› Penetration of CMC patron network

Deliver sub-servicing growth

› Execution of legacy opportunities
› New Loss Mitigation and Workflow platform, due to go live in August

Implement our new loss mitigation system

› Will deliver opex and IT savings, together with a more robust operational framework which will reduce regulatory risk
› Important for excess capital partners as a mechanism to protect their investment
› P&L / margin / RoIC enhancing for CPU

Recapture solution

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US mortgage regulatory update

Regulation creates barriers to entry – aligned with CPU background elsewhere

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Regulatory
landscape
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› The primary federal regulatory body overseeing the US residential mortgage market is the Consumer Financial Protection Bureau (the “CFPB”), which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”).
› State regulators may also exercise authority to supervise companies performing mortgage related activities and are responsible for enforcing state consumer protection laws. And supplemental to the federal and state regulatory frameworks, residential mortgage companies that do business with Fannie Mae and Freddie Mac must maintain eligibility standards and comply with their guidelines.
› Events shaping the regulatory landscape include (a) an appeal by the CFPB against a decision made by the Court of Appeal in a case brought by PHH Corporation that the single-Director structure of the CFPB was unconstitutional; and (b) a Presidential sponsored review that will look at the framework created in the Dodd Frank Act and structure of the CFPB.

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Our
approach
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› Investments in the form of key personnel have occurred in the Risk, Legal, and Compliance functions through the integration of resources from the recent acquisition of CMC and recruitment of industry experienced professionals.
› Investments in technology have concentrated on tools that improve efficiencies, remove variability in outcomes and improve the customer experience.
› Continued focus on the “voice of the customer” has enabled management to prioritise initiatives and drive customer satisfaction.

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Outlook
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› US Mortgage Services is better positioned for growth with a more scalable risk and compliant infrastructure.
› Investments are targeted in areas that produce a positive customer experience while reducing regulatory risk.
› Uncertainty of rules and enforcement activities continue to permeate the regulatory environment and poses unique challenges to market participants.

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Interest rate sensitivities

Sweet spot is modestly rising rate curve

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› New origination volume slows, negatively impacting co-issue and fulfilment businesses (re-financing volume slows while purchase volume stays steady or grows)
› Non-conventional mortgage products become more attractive to investors, creating new revenue opportunities for all business lines
› Margin income rises
› Fair market valuation of existing MSR portfolio improves
› Prepayment rates slow, reducing run-off in existing book
› New origination volume grows (in particular re-financing) positively impacting co-issue and fulfilment business

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› Margin income falls (can be offset by cash balances rising through greater liquidation activity)
› Fair market valuation of existing MSR portfolio reduces; increases impairment risk
› Prepayment rates increase, increasing run-off in existing book
› Market focus moves to more conventional products narrowing the range of opportunities for us

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Management of other key risks

We are comfortable with our residual risk exposure

MSR volumes drive financial outcomes. CMC provides strong visibility of performing buying opportunity and we have not felt the need to participate in any bulk/auction processes.

› New mortgage origination and MSR volumes

› Capital availability in terms of MSR purchasing and recycling through
Capital risk capital partner transactions is key to our ability to deliver growth. Interest remains high from partners.
- We continue to see opportunities to secure new legacy servicing (owned and sub-serviced). Higher interest rate environment will likely add to this..
›
Legacy servicing

› Government agencies can require loans to be repurchased by MSR Credit risk owner. Risk covered through contractual protection so counterparty due diligence important. CMC highly experienced in this field.

› Sustainability of MSR pricing › Sub-servicing business

› Regulatory environment

Concentration risk

We have been able to maintain CMC discounts to fair market whilst increasing volumes. Continued lower supply may increase competition and could impact this if volumes remain as they are.

Service quality key. Good performance on legacy side can lead to loss of business but also creates new opportunities. Performing linked to new origination, reputation and price (scale). CMC provides outlet.

We have invested significantly in our regulatory management resources. We do not expect any further material (adverse) regulatory changes.
We are not reliant on any major subservicing or co-issue client. We continue to explore opportunity to build new capital partner relationships.

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Growth opportunities and key priorities

We expect to make substantial progress towards our target in FY18

Expand CMC volume

› Targeting USD 1bn per month in FY18

Execute on current pipeline

› Sub-servicing opportunities in both performing and non-performing sectors

Penetrate CMC network

› Sub-servicing our no. 1 priority

Build out 3[rd] party business

› Execute on growth plans for Altavera and Mortgage Solutions

Implement new loss mitigation system

› Helps improve margins and control environment

Execute on margin expansion initiatives

› A range of cost reduction opportunities will help drive margin improvement in FY18

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Delivering Efficiencies

Mark McDougall Global Chief Information Officer 27 April 2017

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Key Messages

We have an identified set of cost-out programs (stage 1 and stage 2 in execution mode)

We have a long and successful track record of execution of cost-out projects

There has been a detailed, structured and considered approach

Stage 3 is in planning mode with more information to be provided in 2018

We are confident we will deliver on the benefits

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Delivering Efficiencies

Each of the Delivering Efficiencies strategic levers has an in-flight or planned project over the next three year horizon

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Where we do work How effectively we work

Reduction in manual work Process Automation Operations Digitisation Self-Service

Global Servicing Model Spans of Control Louisville Operational Efficiencies Edinburgh Procurement

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Delivering Efficiencies

Project Overviews

	Stage 1
		A North American project to establish a single, large operating facility in the US Region in a
	Louisville	lower-cost geographical area suitable to our business requirements, while significantly reducing
		our footprints in Chicago, Boston and Jersey City.
	Stage 2
	Spans of Control	A global project to improve the spans of control across the entire organisations, including all business lines, by de-layering manager to non-manager ratios.
		A global project in the operations domain to measure productivity in a way that exposes hidden
	Operational Efficiencies	process and time inefficiencies that will enable us to have greater insight to better manage
		performance and capacity.
		A global project in the procurement domain to review the multiple regional and functional
	Procurement	procurement teams across the group to ensure Computershare is leveraging its third party spend
		effectively.
		A global project across all businesses that focuses on innovative process automation that
	Process Automation	reduces the required investment and implementation times to drive efficiencies in areas such as
		shared services, client relationship management and reconciliation.
	Other	A number of smaller initiatives are also underway

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Delivering Efficiencies

The target savings range is reaffirmed as between USD 85-100m

Stage 1	$M	FY17 est. 28% FY18 55% FY19 69% FY20 100% 20% 90% 100% 25% 75% 100% 100% 50% 20% 80% 100%
Louisville	25 - 30	28% 55% 69% 100%
Stage 2	$M
Spans of Control	~15	20% 90% 100%
Operational Efficiencies	10 - 15	25% 75% 100%
Procurement	5 - 8	100% 50%
Process Automation	~20	20% 80% 100%
Other	10 – 12
Stage 3	TBD

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Louisville

The Louisville program has already delivered 28% of the benefits in FY17 ahead of the original forecast of 15% through early execution

For every employee hired in Louisville there is at least a corresponding FTE that is Financial released Management

The project forms one of the top 10 CEO global priorities

Sponsorship

Clearly identified owners of each major project track have also been in place since its inception

A transition plan was developed with the positions to be hired by week across the lifespan of the project

Governance

Planning

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Execution
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Use of digital, radio advertising & recruitment videos has proven successful

As at March 17, 599 staff work at the Louisville site

Marketing

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Louisville

A key to the success of the Louisville project has been the integration into the community

20% Higher Employee Engagement

41% processing of daily US work

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Corporate Citizenship

Culture

Population

› As of March 31, 2017 Louisville has surpassed the 500 employee threshold
› While the tasks of recruiting, hiring and training such a large population has been significant, Louisville has also provided the US an opportunity to create a culture unencumbered by previous Registry experiences
› We have begun to be recognized as a major employer who is very connected to the community
› We are members of Greater Louisville Inc. and the Metro Chamber of Commerce
› They represent all major areas of Operations including, Call Center, Transaction Processing, Plans, Corporate Actions and the more complex units such as the Tax, Proxy and Dividend processing unit
› Louisville gives us the opportunity to determine the optimal operating model going forward with a culture based on who we want to be vs. what we were
› We support the Mayor’s bike share and Give a Day programs
› We have partnerships with Brightside where we maintain a community garden
› Expanding beyond operations, front office, shared services and temporary roles for KCC and CFS and also located in Louisville
› We have a partnership with Family Scholar House where we consider single mothers who have obtained a college degree for positions at Computershare

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Spans of Control

This project has completed the execution phase and is now in the benefits realisation phase prior to completion

Ongoing reconciliation between roles and financials to ensure Financial benefit capture Management

The project forms one of the top 10 CEO global priorities Sponsorship

Governed by the global management team to ensure delivery Governance Globally co-ordinated communication plan that informed staff within a rolling 24 hour period Communication

Every role in the organisation was considered as part of the project scope

Planning

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Execution
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The core of the project was delivered from inception to completion in less than six months

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Spans of Control

The spans of control project leveraged a best practice approach to organisational layer design

Layer	Role	Span (target)
1	Global CEO	1:7
2	Regional CEO	1:5
3	General Manager	1:6 to 1:7
	Senior Manager	1:6 to 1:8
	Manager	1:7 to 1:12
	Team Leader	1:9 to 1:15
12	Team Member	n/a

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Spans of Control

The target benefits have been successfully realised

› Computershare’s middle management had the least spans at the top which is where the majority of the reduction was achieved
› This initiative focused on management and all areas of the business versus an historical Operations focus
› Consultation was initialised in August 2016 and completed only five months later
› The resultant structure encourages quicker decision making and closer proximity to the end customers
› Best practice targets have now been established across all areas of the business and can be monitored for future compliance

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200+ FTE reduction

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6.6+
Average span
post execution
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Operational Efficiencies

Adopting a different methodology for productivity measurement and operations staff management to drive operating efficiency improvements

The project forms one of the top 10 CEO global priorities Sponsorship

Minimal capital investment required to support the project Financial Management

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Performance
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The core metrics are independent of the work completed which will allow for like-for-like comparisons between businesses and geographies

An initial pilot completed in Australian operations across simple and complex transactions Planning

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Execution
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Chance to establish a whole-oforganisation framework for exposing and solving problems as part of everyday business

Rollout initiated in non-core businesses in North America

Sustainability

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Operational Efficiencies

Enhancing productivity insight and focusing floor management on real time performance vs. weekly or monthly results

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Productivity Metric

Visual Management

Active Management

Defined Operating Rhythm

Visual Management Views

Updated Productivity Metric

Develop detailed views of productivity and quality, and provided deep dive analysis of hourly loss drivers

Refresh current productivity metrics to account for actual agent work output relative to total paid working hours

Work with operations management to develop a tailored operating rhythm to drive performance

Intra-day Reporting

Visual Analytics Deep-Dive

Drivers of Productivity

Support team leaders to understand and draw insights from the new visual metric s

Define efficiency and occupancy measures to visualise the specific drivers of performance of teams and individuals

Prepare daily interim views to understand team and individual agent performance

Team Leader Coaching

Productivity Opportunities

Ad-hoc Analytics for Active Management

Understand the drivers of efficiency and occupancy losses by performing direct observations during identified periods of opportunities

Work with team leaders to understand changes in performance and develop targeted interventions

Analysis specific areas at the request of management/team leaders

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Operational Efficiencies

During the pilot phase, Active Management across the identified opportunity areas produced a significant increase in productivity

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70%
baseline
average
productivity
pre-pilot
83%
5-day moving
average
productivity at
pilot end
19%
productivity
increase A 13 point productivity uplift (70 to 83%)
observed represents a 19% increase over the baseline
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Digital Ops

Digital Ops using innovative technologies will redefine the workplace for all companies

The project is working with the core business on benefits realisation capture as the core performance measure

The project is the number one of the top 10 CEO global priorities Sponsorship

Financial Management

Directly governed by the Global CEO, Global CIO and other key executives

We are using FTE and cost centre heat maps to identify departments across the organisation

Governance

Planning

Key strategic partners in both platform and delivery are working in tandem with us as we expand across the globe

Internal workshops have been held all over the globe to educate staff as to the art of the possible

Marketing

Execution

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Digital Ops

So what is it?

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Intelligent Process Automation
Load Process Business
Work Work Referral
exceptions
documents
images
work items
CPU System Process Owner
excel forms OCR
digitisation
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› Known in the industry by many names such as:
› Intelligent Process Automation
› Robotic Process Automation
› Virtual Workforce Management
› Automation is facilitated through the existing system user interface
› It doesn’t require system integration – therefore no development is required
› Software “robots” use the same application interfaces (UI) as our staff to execute on business processes
› A software “robot” is given login credentials and application access in exactly the same as any typical staff member
› 1 robot works 24/7, 365 days = 8760 hours

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Digital Ops

The small investment cost, delivery efficiency and speed to market makes the technology approach highly compelling

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Process
Core System
Re-engineering
Development
Digital Ops
size of required investment
Self-Service
Workflow
Channel
Transaction
Development
Automation
1 year 2 years 3 years
Time to Benefit
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Business Value
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Digital Ops

Deep data insights into the processing outcomes is already confirming the unlimited potential of the initiative

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21
Processes in
production and
counting!
2
Processes in
production per
week across the
globe in start-
up phase
500K
Wave 1
annualised
savings There are 11 incremental waves of process automation deployment, with
estimate increasing benefit profiles, planned across the globe in the next 3 years
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Closing Messages

We understand the cost-out projects and their relationships with each other to achieve the results stated

Louisville is ahead of plan and on track to deliver

Spans of Control has nearly completed and on track to deliver

Operational Efficiencies has proven its potential and will now look to execute on a global scale

Process Automation has mobilised quickly across the regions and is already delivering results in the mobilisation phase

We are confident we will deliver on the benefits

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AI assistant

COMPUTERSHARE LIMITED. — Investor Presentation 2017

64696_rns_2017-04-26_de8ebcd5-3067-4ffc-b8dd-1718d4fe28a7.pdf

Computershare Limited

MARKET ANNOUNCEMENT

For further information contact:

About Computershare Limited (CPU)

Investor and Analyst Briefing Building sustained earnings growth

Schedule

FY17 Management EPS Guidance reaffirmed

Robust underlying business performance continues

Delivering sustained earnings growth

Simpler, more transparent, disciplined and profitable

Margin Income Unwrapped Headwind becoming tailwind

Margin Income

Balances across the business model

Breakdown of balances

Exposed and hedged

Balances analysis

Majority of balances are exposed to interest rate changes

Exposed and non-exposed balances by business

Profile of the non-exposed balances

Exposed balances (hedged and un-hedged)

Breakdown of exposed balances by currency

Average exposed balances hedged

Profile of our swap and deposit book

Treasury management

Mark to market commentary

Profile of our swap and fixed rate deposit book

Duration – enhancing yield

Governance and sensitivities

Permissible counterparties

Counterparty Universe:

Liquidity management

Governance and sensitivities

Interest rate movements

Opportunities and challenges

Headwind turning into tailwind

After a sustained period of interest rate declines rate curves are now improving

Conclusions

$16.6bn

Yield enhanced

Tailwind

No cliff/no lockout

$10.3bn

1 % = $55m EBITDA

Global Registry

Naz Sarkar

Global Registry

Driving margin growth

Global Registry

Management Revenue by Region

FY15 @ CC

FY14 @ CC

FY16

Management Revenue by Type

Global Registry

No. 1 or 2 by size in focus markets

Major Indices

EMEA

Global Registry

Large global issuers

Global Registry

Low volatility in wins/losses and retentions in all markets

Global Registry

Opportunities for growth through innovation

Global Registry

Changing market landscape creates challenges and opportunities

Global Registry

Delivering positive margin jaws despite shareholder attrition

Naz Sarkar

Global Employee Share Plans

Building a global growth engine

Global Employee Share Plans

Driving growth through increased core fees and recovery in transactional fees

Management Revenue by Region

FY14 @ CC

FY15 @ CC

FY16

1H17

COMPUTERSHARE LIMITED. Investor Presentation 2017