COMPUTERSHARE LIMITED. - Investor Presentation 2021

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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:	4 May 2021
To:	Australian Securities Exchange
Subject:	Macquarie Australia Conference 2021

Attached is a presentation to be delivered at today’s investor conference.

For further information contact:

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

This announcement was authorised to be given to the ASX by the CEO.

For more information, visit www.computershare.com

MACQUARIE AUSTRALIA CONFERENCE 2021

May 2021

Stuart Irving , President and Chief Executive Officer

Computershare at a glance

A technology-enabled administrator of financial assets

ISSUER SERVICES BUSINESS SERVICES EMPLOYEE SHARE PLANS MORTGAGE SERVICES COMMUNICATION SERVICES CORPORATE AND TECHNOLOGY

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Over $1 $187 billion 50% of
AUA in 1 million employees
25,000 12,600 trillion
mortgages supported with
clients people payments Share PlansEmployee serviced a Covid
facilitated payment
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Note: All numbers as at 30 September 2020.

Trading update – FY21 guidance unchanged Management EPS to be down around 8%, pre-Entitlement Offer[1]

In constant currency, for FY21 we expect:

Guidance

Management EPS to be down by around 8%, on a pre-Entitlement Offer basis[1]

‒ We expect Management EPS for 2H21 to be around 30.0 cents per share, on a pre-Entitlement Offer basis[2]

‒ EBIT ex margin income to be up by around 14%[3]

For the first three months of 2H FY21:

Better than February expectations In line with February expectations

Behind February’s expectations

Shareholder paid fees in US Issuer Services starting to pick up

Margin income balances and yields Corporate Actions volumes in Issuer Services

New client wins for full Corporate Actions range of Issuer Services’ volumes in Issuer solutions Services Ongoing recovery in Contributions from Employee Share Plans’ Corporate Creations and trading volumes Verbatim acquisitions

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Government support and low cost capital reducing levels of corporate bankruptcies Extension to US Mortgage Services foreclosure moratorium now expected into FY22

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For comparative purposes FY20 Management EPS is 56.12 cents per share in FY20 constant currency. Percentage calculated relative to prior calendar period. 2. The 2H21 Management EPS of 30.0 cents per share has not been adjusted for the shares that will be issued as part of the Entitlement Offer. 3. The base FY20 Management EBIT ex margin income is $298.7m in FY20 constant currency. 4. Key assumptions underpinning guidance: Margin income revenue expected to be around $105m, Equity and interest rate markets remain at current levels / in line with current market expectations and Group tax rate between 28.0% - 30.0%. 5. Refer to Slide 69 of the FY21 Half Year Results Presentation dated 9 February 2021 for constant currency conversion rates.

Computershare’s commitments

Increasing leverage to structural growth trends

Strong free cash flow supports growth strategies and shareholder distributions

Building scale in new Issuer Services, Corporate Trust and Employee Share Plans growth markets

Ongoing efficiency programs

Developing new products and innovations

Consistent dividend history

Protecting our company, communities and customers

High levels of recurring revenue with leverage to equity markets and interest rates

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Issuer Services

Globally integrated product offering gaining traction

Mgmt EBIT ex. Margin Income $102.8m 23.3% Margin: 160bps 23.5%

Revenue breakdown	1H21 CC	1H20 Actual	CC Variance
Register Maintenance*	$302.7	$300.9	+0.6%
Corporate Actions Stakeholder Relationship Management	$65.3 $35.2	$48.5 $18.1	+34.6% +94.5%
Issuer Services-Other Margin Income Total revenue*	$34.4 $22.1 $459.8	$12.4 $44.4 $424.3	+177.4% -50.1% +8.4%
Mgmt EBITDA	$126.7	$129.2	-1.9%
Mgmt EBITDA margin	27.5%	30.5%	-300bps
Mgmt EBIT ex Margin Income	$102.8	$83.4	+23.3%
Mgmt EBIT ex Margin Income margin	23.5%	21.9%	+160bps

Revenue excluding Margin Income

Key Priorities

	FY18	FY19	FY20	1H21
Registry Global Net Wins1	293	354	195	139

Units Under Managementup 9.5% year over year, with 5,800 units added in 1H

1,500 client entities added globally, now operating in 8 different countries

Global managed shareholder accounts (millions)

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38.5 38.2
38.0
37.5
37.0 36.7
36.5
36.0
35.5
35.0
FY19Q2 FY19Q3 FY19Q4 FY20Q1 FY20Q2 FY20Q3 FY20Q4 FY21Q1 FY21Q2
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Steady growth demonstrated since 2018
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Notes: Unless otherwise specified, percentage differences relevant to 1H20 are on a constant currency basis[1] Excludes uncontrollable losses (eg Delisting, M&A). Corporate Creations acquired in February 2020. Verbatim acquired in July 2020.

Employee Share Plans

Improved fee revenue with trading volumes recovering

Mgmt EBIT* ex. Margin Income $14.6m 19.8% Margin: 220bps 11.2%

*1H21 impacted by $4.5m of one-off regulatory costs associated with Brexit transition. Adjusted EBIT ex MI $19.1m +4.9%, margin 14.6%, +110bps.

Revenue breakdown	1H21 CC	1H20 Actual	CC Variance
Fee Revenue	$67.7	$66.5	+1.8%
Transactional Revenue	$57.3	$61.9	-7.4%
Other Revenue	$5.8	$7.0	-17.1%
Margin Income	$2.2	$6.3	- 65.1%
Total revenue	$132.9	$141.6	-6.1%
Mgmt EBITDA	$19.4	$27.1	-28.4%
Mgmt EBITDA margin	14.6%	19.1%	-450bps
Mgmt EBIT ex Margin Income	$14.6	$18.2	-19.8%
Mgmt EBIT ex Margin Income margin	11.2%	13.4%	-220bps

Key Priorities

Outstanding shares and options under administration

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Continue to win new 1H21 growth net
1 5%
clients new clients
Upgrade to EquatePlus
2 96% EMEA clients upgraded
platform
Dec 2020 value and volume
3 Trading volume recovery of transactions exceeded
pre Covid December 2019
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300 AuA Shares/Options/Units 30
200 20
100 10
- -
FY18Q1 FY18Q2 FY18Q3 FY18Q4 FY19Q1 FY19Q2 FY19Q3 FY19Q4 FY20Q1 FY20Q2 FY20Q3 FY20Q4 FY21Q1 FY21Q2
AuA Billions
Shares/ Options / Units
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› Q2 improvement in AuA as corporates continued to use equity remuneration to attract, retain and reward employees
› Outstanding shares & options under administration up 9% per annum post Equatex acquisition

Mortgage Services

Foreclosure moratorium and low rates impacting US, UK cost out on track

Mgmt EBIT ex. Margin Income	Mgmt EBIT ex. Margin Income
-$2.6m	111.1%
Margin: -0.9%	840bps

Revenue breakdown	1H21 CC	1H20 Actual	CC Variance
US Mortgage Services*	$213.1	$209.4	+1.8%
Margin Income	$2.1	$17.9	-88.3%
UK Mortgage Services	$66.3	$101.6	-34.7%
Total revenue	$281.5	$328.9	-14.4%
Mgmt EBITDA1	$47.0	$75.9	-38.1%
Mgmt EBITDA margin	16.7%	23.1%	-640bps
Mgmt EBIT ex Margin Income	-$2.6	$23.4	-111.1%
Mgmt EBIT ex Margin Income margin	-0.9%	7.5%	-840bps

Revenue excluding Margin Income

Key Priorities

Growth in Sub-Servicing

Growth in US capital light revenues

Growth in US capital light Increase in sub1 +3.2% revenues servicing UPB Recapture UPB pipeline Expansion of recapture 2 $200m since launch in capability December 2020 Delivery of UK cost out $34.8m cost savings 3 program delivered in 1H21

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140.0 800
120.0
600
100.0
80.0
400
60.0
40.0
200
20.0
- 0
Sub-servicing UPB ($) Sub-servicing Loan Count (#) Total UPB ($) Total Loan Count (#)
UPB (USD $B)
Loan Count (k)
Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20
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Notes:[1] UK Mortgage Services EBITDA loss making ($0.6m) in 1H21 and 1H20. 1H21 UK Mortgages EBIT loss of ($1.1m), US Mortgages EBIT ex Margin Income margin -0.7%.

Business Services

Market leading Canadian Corporate Trust business creates base for US expansion

Mgmt EBIT ex. Margin Income $12.9m 55.4% Margin: 360bps 13.1%

Revenue breakdown	1H21 CC	1H20 Actual	CC Variance
Corporate Trust*	$26.0	$24.2	+7.4%
Bankruptcy*	$41.3	$18.5	+123.2%
Class Actions*	$31.5	$45.3	-30.5%
Margin Income Total revenue Mgmt EBITDA	$15.8 $114.6 $29.6	$32.9 $120.8 $41.7	-52.0% -5.1% -29.0%
Mgmt EBITDA margin	25.8%	34.5%	-870bps
Mgmt EBIT ex Margin Income	$12.9	$8.3	+55.4%
Mgmt EBIT ex Margin Income margin	13.1%	9.5%	+360bps

Revenue excluding Margin Income

Key Priorities

Corporate Trust - positive long term trends

1 2 3

FY21 YoY growth in Expansion in Corporate 44% US Corporate Trust Trust US Services mandates 1H21 revenue has Bankruptcy Revenue 2x doubled from Growth 1H20

Class Action case Deliver on Global Class Global wins in South Action opportunities Africa, UK and US

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Debt under Administration Fee Revenue
2,500 10- year CAGR 4.9% 60,000 10-year CAGR 6.4%
2,000 50,000
40,000
1,500
30,000
1,000
20,000
500
10,000
- 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Q2
$CAN Bn USD '000s
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On the 24[th] March 2021, Computershare announced the acquisition of the Wells Fargo Corporate Trust business (“CTS”)

Clear strategic fit, expanding North American corporate trust operations

Geographic expansion in US
Extension of current Canadian and US operations

A market leading US corporate trust position

Moves Computershare from #8 to a top 4 market position in the US[1]

Stable, capital light, recurring revenue stream

Long tenured appointments, average contract expected life of ~9 years
High proportion of recurring revenue

Increasing exposure to long term growth in trust and securitisation products

US bond issuances and securitisations have grown at ~7% and ~8% p.a. respectively for the last 25 years[2]
Capital light business

Expected to retain highly experienced management team

Scope for product improvement and technology innovation

Separation and integration plan well advanced

Attractive financial returns

CTS management team has an established track record
~26 average years of industry experience
Material cost synergies reaching US$80m p.a. (from year 5) targeted in operations, IT, and other areas
Additional revenue synergies not captured
Clear transition plan for CTS
24 month Transitional Services Agreement (“TSA”) period
15%+ EPS accretion on a proforma FY21 basis[3] including full run rate synergies[4] , and EPS neutral excluding synergies[3]
Clear pathway to 15%+ ROIC for CTS over time[5]
Source: Refinitiv US Capital Markets Review 2020. Trustee ranking by gross proceeds. 2. Source: Refinitiv. 3. FY21 Management EPS accretion as if the acquisition was effective from 1 July 2020. Calculated in accordance with AASB 133, with adjustments to reflect the bonus element of the Entitlement Offer. Excludes one-off post-tax transaction costs of US$35m, integration costs of US$89m, and amortisation of intangibles recognised as a result of the acquisition. 4. Assumes full run rate annual pre-tax synergies of US$80m expected to phase in over 5 years post acquisition close. 5. CTS ROIC target in FY25 driven by organic business growth and synergies, assuming consensus forward interest rate curve as at 18 March 2021.

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CTS is a leading US corporate trust service provider

CTS offers trustee, agency and fiduciary/custody services in connection with securities and related transactions backed by a variety of asset classes
Established player with over 80 years of operating history

~9 years ~2,000 ~26,000 Avg. contract Full time Mandates expected life employees

Comprehensive and diverse product offering delivered through two main business divisions:

Fee-Based Revenue Mix[1]

Conventional Debt and Specialised Services

Structured Products and Services

Offers trustee, agency and fiduciary services on bond and debt programs for corporations and government entities

Offers trustee, agency and fiduciary/custody services in connection with securities and related transactions backed by a variety of asset classes

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MMF Fees & Other
9% LTM
Net Interest Revenue:
Income US$477m
18%
Trust Fees
73%
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~125 products across all major asset classes

Sizeable Client Balances[2]

Total balances have been growing at ~7% p.a. for the last three years
Deposits are placed with eligible accounts and earn margin income
Money Market Funds (“MMFs”) are placed with eligible funds and earn a fee

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Exposed Deposits
14%
Total
Non-Exposed
Balances:
Deposits
15% US$62bn
MMFs
72%
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Source: Wells Fargo Corporate Trust Services, its representatives and associates. See page 2 for the relevant disclaimer. Pie charts may not add up to 100% due to rounding. 1. Year ended 31 10 December 2020. 2. Average balances over 4Q20.

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High quality recurring trust fee revenue

Trust Fees per CY half (US$m)

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177.6 178.9
171.6
170.1
164.9
161.3 162.6
158.1
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020
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Trust fees are durable and recurring in nature; derived from trustee, agency and fiduciary/custody services provided on long dated contracts
Generated from serving in variety of fee-based capacities per mandate
~75%[2] recurring revenue[3]
Fees earned upfront and throughout life of a transaction
Highly diversified revenue stream – varied client composition and broad product/service offering with low concentration risk
- No single client contributes more than 5%[4]
- Average client relationship (top 10) of ~20 years
- Trust fee revenues derived from long-dated contracts (~9 years average contract expected life)
Annualised CAGR of trust fees between CY17 and CY20. 2. Year ended 31 December 2020. 3. Recurring revenue is a non-IFRS financial measure which may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures. See page 3 for further information. 4. Excluding affiliated entities (Wells Fargo Bank N.A. contributed ~6% in CY20).

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Significant opportunity to drive meaningful efficiencies

Three main A Operations and IT categories of Transformation programs including efficiencies deployment of new technologies, identified automation and digitisation to enhance client experience and product suite

B Shared services functions C Front office and other admin .

Front and middle office investments for efficiency and growth

Leveraging Computershare's global shared service functions. Existing corporate services not transitioning from Wells Fargo

Time frame for synergy realisation acknowledges 24month transitional period post completion

‒ Forecast execution expenses of US$210m to transition and integrate the business, incurred over the TSA period, plus Realisation of US$21m of transformation costs to achieve synergies (all efficiencies expected pre-tax) incurred over five years[1] to occur over five ‒ Stand-up capex of US$103m incurred over the first 12 years months and funded on day one

Full run rate synergies represent ~20% of CTS CY20 operating costs

Cost Synergies (US$m)[2]

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24 Month TSA Period
80
63
48
17
11
Year 1 Year 2 Year 3 Year 4 Year 5
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Integration benefits with existing corporate trust operations limited until post transition
Funded from ongoing operating cashflow. 2. Realisation of cost synergies assumes transitional services appropriately delivered by vendor and within the time frame envisaged at time of announcement (24 months), and business is ready for full separation post TSA.

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Computershare & CTS - $78 billion in combined cash balances Increased leverage to rising rates

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150 248.7 250.9 260
232.2
218.2
130
197.9 198.5 198.1 210
110
165.9
160
90
80.4 79.2 78.2
69.5
67.5 66.0 67.1 67.1
70 110
35.2
41.2
23.2 24.5 25.6 27.8 29.5 43.7
50
60
17.3
19.8
30 17.3 17.4 15.0 16.5 14.8 9.9
6.9
8.2 7.7 7.4 7.0 6.9 7.2 7.8
8.1 10
6.2 6.3 6.7 6.3 4.8 4.8 5.2
10
10.1 10.3 10.1 11.0 11.8 12.9 11.3 11.6
2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20
-10 -40
CPU - Exposed CPU - Non Exposed WF - Exposed WF - Non Exposed WF - MMF
MI - US$M
Balances - US$BN
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Acquisition enhances the proportion of high quality revenue in Computershare’s portfolio and leverage to long term growth trends

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Revenue Mix by Business
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Revenue Mix by Type
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Revenue Mix by Geography

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4 %
6 %
7 %
11 % 23 % 8 %
41 %
13 % 9 %
52 %
27 % 77 % 21 %
5 % 3 %
8 %
17 % 6 %
6 % 34 % 7 %
9 %
18 % 60 %
11 %
23 % 92 %
Mortgage Services USA UCIA2
Business Services 1 Australia & NZ Canada
Recurring Revenue Non-Recurring Revenue
Wells Fargo CTS Asia Continental Europe
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including CTS
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Issuer Services Mortgage Services
Employee Share Plans Business Services
Communication Services Wells Fargo CTS
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Source: Company filings. CTS management. LTM figures as at 30-Dec-20. Pie charts may not add up to 100% due to rounding. 1. Recurring revenue is a non-IFRS financial measure which may not be comparable to similarly titled measures presented by other entities and should not be construed as an alternative to other financial measures. See page 3 for further information. 2. United Kingdom, 14 Channel Islands, Ireland and Africa.

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Important notice

Summary information

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

Financial data

Management results are used, along with other measures, to assess operating business performance. The company believes that exclusion of certain items permits better analysis of the Group’s performance on a comparative basis and provides a better measure of underlying operating performance.
Management adjustments are made on the same basis as in prior years.
The non-IFRS financial information contained within this document has not been reviewed or audited in accordance with Australian Auditing Standards.
All amounts are in United States dollars, unless otherwise stated.

Past performance

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

Future performance and forward-looking statements

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

Disclaimer

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

Not intended for foreign recipients

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

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COMPUTERSHARE LIMITED. — Investor Presentation 2021

64696_rns_2021-05-03_56da1916-c882-4388-a1ae-57741132df95.pdf