COMPUTERSHARE LIMITED. - Investor Presentation 2022

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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:	3 May 2022
To:	Australian Securities Exchange
Subject:	Macquarie Australia Conference 2022

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 Group CEO.

For more information, visit www.computershare.com

MACQUARIE AUSTRALIA CONFERENCE

3 May 2022

Nick Oldfield , Chief Financial Officer

Computershare at a glance

A technology-enabled administrator of financial assets

Issuer Services Employee Share Plans Corporate Trust Mortgage Services Business Services 40,000+ ~14,000 $77bn $240bn 38.3m 131,980 Communication Services Clients People Client Assets under Shareholder Entities under balances, administration accounts management providing leverage to interest rates

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Note: Canadian Corporate Trust remains part of Business Services.

1H22 Summary

Growth in Register Maintenance, Governance Services and Employee Share Plans offset by lower event activity. Bankruptcy and Class Actions remain subdued. Significant leverage to rising interest rates

Employee Share Plans revenue growth and margin expansion. Equate+ platform supports market share gains

Event based revenues impacted by lower activity levels. Optionality retained

UK Mortgage Services return to profitability. Sale under consideration

Governance Services gains traction with new client wins. Scope for sustained growth

CCT exceeds expectations on fee income. Significant leverage to interest rates

US Mortgage Services affected by macro challenges. Outlook improving

Margin income set to rise with new expectations of US rate increase in Q4

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High quality core administration businesses drive consistent operating performance

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25.3% 25.8%
24.6%
2,000 23.3% 23.1% 23.6% 25%
22.1%
21.3%
18.9%
20%
17.3%
1,500
1,172
1,128 1,128 1,124 1,102
15%
986 977 960 939 1,003 240
1,000 296 270 245 269
217
287 246 233 222
10%
500
700 731 727 716 786 832 858 880 833 931 5%
0 0%
1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22
Recurring Non recurring EBIT Margin
USD M
Total Revenue EBIT Margin %
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Margin Income

FY22 margin income now expected to exceed $152m with anticipated Q4 global rate rises

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2H22 assumed 1st April 25
bps interest rate rise in the
180.0 US. Contributes incremental 140.0
125.2 $7m: $2m Legacy and $5m
121.2 CCT.
160.0
116.0
120.0
Further rate rises expected
140.0 to deliver greater MI
contribution
100.0
~ 89.9
120.0
83.4
80.0
100.0 100bps increase in
average interest rates on 62.1
80.0 balances equates to an 2H exposed average 55.5 51.5 60.0
annualised EPS increase
60.0 of 26 cents per share
40.0
40.0
20.0
20.0 ~ 40.5
27.9
21.0 16.1 16.8 17.6 17.6 20.0
0.0 0.0
1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22E
Average balances - Total ($bn) Margin Income ($m)
USD billion USD million
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Margin Income and Balances translated at Actual fx rates. 1H22 Margin Income in constant currency is $60.1m. 1H22 includes CCT Margin Income and balances for 2 months ($27.9bn is the weighted average balance for 1H22). * Assumes ETR of 28% and CPU retains 90% of the rate rise benefit.

Issuer Services

Registry and Governance Services continue to grow, weaker event revenue

Mgmt EBIT ex. MI $97.5m 6.3% Margin: 130bps 22.2%

Revenue breakdown	1H22 CC	1H21 Actual	CC Variance
Register Maintenance*	$317.3	$306.4	+3.6%
Corporate Actions* Stakeholder Relationship Management	$50.2 $26.3	$66.4 $35.5	-24.4% -25.9%
Governance Services Margin Income Total revenue	$44.7 $17.9 $456.4	$34.6 $22.1 $465.0	+29.2% -19.0% -1.8%
Mgmt EBITDA	$116.8	$127.9	-8.7%
Mgmt EBITDA margin	25.6%	27.5%	-190bps

FY22 key priorities

Growth drivers

Global managed shareholder accounts (millions)

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Ongoing front office investment to leverage client relationships

Investment in product innovation and client experience

Drive organic growth in new market segments

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Increasing regulatory complexity driving stronger corporate focus on governance and compliance

Increasing demand for digitized solutions

Outsourcing facilitates access to better technology, lower cost and a higher quality solution

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38.5 38.3
38.2
38.1
37.9
38.0
37.5
37.0
36.7 36.7
36.5
36.5
36.0
35.5
FY19Q2 FY19Q4 FY20Q2 FY20Q4 FY21Q2 FY21Q4 FY22Q2
Steady growth demonstrated since FY19 and increase from FY21
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6 * Revenue excluding Margin Income

Employee Share Plans

Equate+ platform drives market share gains and margin expansion

Mgmt EBIT ex. MI $31.8m 122.4% Margin: 1000bps 20.7%

Revenue breakdown	1H22 CC	1H21 Actual	CC Variance
Fee revenue	$73.6	$69.8	+5.4%
Transactional revenue Other revenue	$73.1 $6.8	$58.7 $5.9	+24.5% +15.3%
Margin income Total revenue Mgmt EBITDA Mgmt EBITDA margin	$1.2 $154.8 $35.7 23.1%	$2.3 $136.7 $19.3 14.1%	- 47.8% +13.2% +85.0% +900bps

FY22 key priorities

Growth drivers

Outstanding shares and options under administration

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Strong client fee growth Progress the rollout of Equate+

Continued growth in units under admin

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Equitization of remuneration – issuing more equity as compensation and deeper into organisations

Technology solutions and employee access and ease of use

Globalisation of workforces and increasingly complex regulation are driving corporates to seek global service partners to provide compliant and consistent solutions

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300 30
AuA Shares/Options/Units
250 25
200 20
150 15
100 10
50 5
0 0
FY18Q3 FY18Q4 FY19Q1 FY19Q2 FY19Q3 FY19Q4 FY20Q1 FY20Q2 FY20Q3 FY20Q4 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY22Q1 FY22Q2
AuA ($bn)
Shares/Options/Units (Bn)
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› Outstanding shares/options/units under administration increased 5% YoY to 28bn as the equitisation of remuneration trend continues with many corporates issuing equity deeper into the organisations.

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Mortgage Services

Macro environment impacts US performance, outlook improving

Mgmt EBIT ex. MI[2] -$2.5m 7.4% Margin: Flat -0.9%

Revenue breakdown	1H22 CC	1H21 Actual	CC Variance
US Mortgage Services*	$212.8	$213.1	-0.1%
US Mortgage Services Margin Income	$1.2	$2.1	-42.9%
UK Mortgage Services	$55.2	$68.7	-19.7%
Total revenue	$269.2	$283.9	-5.2%
Mgmt EBITDA1	$55.6	$47.0	+18.3%
Mgmt EBITDA margin	20.7%	16.6%	+410bps

Revenue excluding Margin Income

FY22 key priorities

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Execute capital recycling transactions to drive subservicing volume

Implement new loan X origination system and new client pipeline

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Evaluate opportunities to maximise shareholder value in UK operations

Growth drivers

Ending of foreclosure moratoriums and withdrawal of Government support packages should lead to special servicing opportunities

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Strong levels of market liquidity driving demand for MSR and interest in capital light solutions to leverage CPU MSR co-issue channel

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Origination levels likely to remain relatively elevated whilst ever low rates continue

Stable UPB, growth in Sub-Servicing

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140.0
120.0
100.0
80.0
60.0
40.0
20.0
-
Total UPB ($) Sub-servicing UPB ($)
UPB ($bn)
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 Jun-21 Dec-21
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8 1 UK Mortgage Services EBITDA $4.9m in 1H22 and ($0.7m) in 1H21. 2 1H22 UK Mortgages EBIT ex MI $4.4m, US Mortgages EBIT ex Margin Income loss $6.9m, margin -3.3%.

Business Services

Consistent Canadian Corporate Trust offset by reduced event based revenues

Mgmt EBIT ex. Margin Income $6.3m 51.2% Margin: 420bps 8.9%

Revenue breakdown	1H22 CC	1H21 Actual	CC Variance
Corporate Trust*	$26.4	$25.8	+2.3%
Bankruptcy*	$16.3	$41.3	-60.5%
Class Actions*	$28.4	$31.6	-10.1%
Margin Income	$11.6	$15.7	-26.1%
Total revenue	$82.6	$114.4	-27.8%
Mgmt EBITDA	$18.7	$29.5	-36.6%
Mgmt EBITDA margin	22.6%	25.8%	-320bps

Revenue excluding Margin Income

FY22 key priorities

Growth drivers

Corporate Trust Canada, positive long-term trends

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Continue to add corporate trust mandates

Improve Class Actions and X Bankruptcy growth and profitability

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Focus on global and large scale Class Action opportunities

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Ongoing growth in debt under administration

Timing of withdrawal of Government stimulus key to recovery in bankruptcy volumes

Covid related Class Action activity expected across a range of sectors

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Debt under Administration CAD (bn) 60 Fee Revenue USD (M)
2,500 10-year CAGR 4.2% 9-year CAGR 6.2%
50
2,000
40
1,500 30
1,000 20
500 10
0 0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H22 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H22
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Computershare Corporate Trust (CCT)

Results exceed expectations, significant leverage to rising interest rates (acquisition completed 1[st] November)

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Mgmt EBIT ex. Margin Income Revenue breakdown 1H22 CC
MMF Fee Revenue $2.2
$1.7m Other Fee Revenue $67.1
Margin Income $7.5
Margin: Total revenue $76.7
2.4% Mgmt EBITDA $9.6
Mgmt EBITDA margin 12.5%
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10-year CAGR 5.5%
400
350
300
250
200
150
100
50
0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Trust fee revenue (USD M)
364
349
321 318 324 335
284
260
241
225
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Separation and integration plan underway

6-12 months

12-24 months

24+ months

❑ Ongoing separation activity: Infrastructure build and key system migrations in full swing to separate from Wells Fargo
❑ Client contract reviews/restricted account strategy
❑ Technology Transition
❑ Deposit Transfers from Wells Fargo
❑ Steady State to be achieved (Business fully integrated and operating at full capacity)
❑ Separation from Wells Fargo
❑ Synergy target of $80 million achieved by Year 5 post-close
❑ Offshore captive set-up

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Includes 2 months contribution in 1H22.

Cash flow and leverage

Leverage ratio of 2.02x as at December 2021, within target range

Cashflow Waterfall

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Free cash flow
$181.5m
203.3
-12.3 -9.5 -101.9
-633.4
-713.0
Net operating Capex Net MSR spend Net acquisitions Dividends Net cash flow
cash flow and disposals
(ex SLS advances)
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Net Debt / EBITDA[1] (x)

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2.25x
Leverage
2.02x
target 1.93x
range
1.75x
1.07x
FY20 FY21 1H22
Net Debt (USD M) 1,244.9 673.7 [^] 1,342.2
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1 Excludes non-recourse SLS Advance debt.

Net cash payments for MSR purchases of $9.5m in 1H22 (purchases of $124.3m and sales of $114.8m). **Includes disposal of Milestone $16.7m.

The FY21 leverage ratio of 1.07x includes proceeds of rights issue which was deployed on the CCT acquisition in 1H22.[^] $620.2m of gross proceeds received for rights issue.

1H22 leverage ratio of 2.02x assumes 2 months EBITDA contribution from CCT. If we were to include 10 months pre acquisition EBITDA of $51.9m, the leverage ratio would have been 1.87x. The net debt calculation of $1,342.2m includes $33.0m of cash classified as an “asset held for sale”.

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FY22 Management EPS guidance affirmed Management EPS expected to be up around 9% on pcp

Net effect unchanged

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7.4 5.8
~ 57.0
4.6 ~ 55.4
52.46 5.1
0.3 6.1
4.4 0.5 Rate rises
1.9
and lower
Expected
Net Greater Macro volatility to be expense Affirmed
benefit impact now will reduce lower driving
now anticipated core earnings overall higher
growth contribution
expected
FY21 Impact of Impact BEAT Net non FY22 Q4 US Cost out Operational FY22 CCT Impact of rights FY22
Management EPS event based of inflation recurring items rate rises program savings earnings Management EPS issue Management EPS
(pre rights) businesses growth (Legacy CPU)
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Margin Income impact only.

Note: EPS breakdown is provided for indicative purposes and forms part of EPS Key Assumptions. In constant currency, FY22 Management EPS is expected to be up around 9% including CCT. This assumes FY21 Management EPS is 52.46 cents per share calculated on a WANOS of 540,879,593. FY22 Management EPS is expected to be 57.0 cents per share calculated on a WANOS of 603,729,336. Refer to slide 57 for constant currency conversion rates.

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2H22 Management EPS guidance unchanged

2H Management EPS expected to be up around 12% on pcp

Net effect unchanged

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3.3
6.3
0.6 ~ 34.3
2.4 0.2 0.8 0.3 2.6 ~ 31.3
30.67
Benefit More rate Expected Likely greater Affirmed
Market related
expected rises will to be benefit due to
revenues will
to be improve lower higher margin
reduce earnings
higher margin income overall income and
growth
lower expense
2H21 Management Impact BEAT Non recurring FY22 Q4 US Cost out Operational 2H22 Management CCT Impact of rights 2H22
EPS of inflation items rate rises program savings earnings EPS issue Management EPS
(pre rights) growth (Legacy CPU)
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Margin Income impact only.

Note: EPS breakdown is provided for indicative purposes and forms part of EPS Key Assumptions. In constant currency, Management EPS is to be up around 9% including CCT. This assumes FY21 Management EPS is 52.46 cents per share calculated on a WANOS of 540,879,593. FY22 Management EPS is 57.04 cents per share calculated on a WANOS of 603,729,336. Refer to slide 57 of 1H22 results presentation for constant currency conversion rates.

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FY23 outlook

Positive outlook for FY23 – another year of profitable growth expected

Tailwinds

Headwinds

Global interest rate rises expected to drive growth in margin income

Continued inflationary pressures on all major expense lines

Ongoing organic growth in segments of Registry Maintenance, Governance Services and Employee Share Plans

Risk of further macro volatility impacting businesses with capital markets exposure

Potential for rebound in pandemic impacted businesses of US Mortgage Services and Bankruptcy Administration

Possible US tax reform and higher mix of US profits expected to lead to higher ETR

Full year of CCT contribution

Timing of bank appetite for new deposits

Executing our strategy to build strong, efficient businesses with greater scale and leverage to positive growth trends and increased optionality

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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 2022

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