Computershare Market Update

Transcription

1 MARKET ANNOUNCEMENT 29 May 2002 Computershare Market Update At its half year results announcement Computershare undertook to provide an update on business conditions to the market at the end of May. The agenda for this update covers principally routine matters and was advised earlier this month. The presentation attached to this Market Announcement sets out the material as contemplated by the Agenda in the following order - Confirmation of forecasts and targets - Regional highlights - FY 2002 priorities and improvements - New global structure and new appointments - Growth - key areas of focus Consistent with Computershare disclosure policy a copy of the presentation is accessible from Computershare s web site Computershare has decided to cancel tomorrow's proposed briefing and conference call. The company has been disappointed by recent inappropriate market speculation concerning the contents of this briefing and given the routine nature of its contents has simply decided to make the contents of the presentation available through this medium. Page 1 of 1

2 Market Update 30 May

3 Contents Confirmation of Forecasts & Targets Regional Highlights and Major Recent Deals Technology Update FY 02 Priorities & Improvements in place New Global Structure & New Appointments Growth - Key areas of focus Summary 2

4 FY 02 targets & forecasts Confirm that our assumption for remainder of FY 02 was correct - ie. no significant recovery in investment banking conditions Key characteristics of 2H FY 02 affecting revenue to date: fewer IPO s and corporate actions in 2nd half MTR(H/Kong) & Telkom (South Africa) IPOs now deferred to FY 03 minor increase in interest rates In line with market conditions, FY 02 expectations are now tracking at the low end of our forecast range for revenue, EBITA & NPAT Revenue range: $753.0m to $775.0m EBITDA range: $145.0m to $152.0m NPAT range: $56.0m to $60.0m 3

5 Regional Highlights Australasia Stuart Crosby appointment (1 July) to head Australasian time zone Michael Gardner appointment - Aus Operations Shareholder Satisfaction Surveys now introduced SCRIP conversion complete in Hong Kong Merger with Hong Kong Exchange to complete on 1 June 02 (detail Slide 8) 4

6 Regional Highlights Europe Staffing levels stabilised at current levels Iain Saville commenced (1 May) to head European time zone Darryl Corney appointment (1 July) Senior Executive Europe Mercantile acquisition effective from 1 April effective 100% market share all IT will be provided from Bristol generating cost savings 50% of major analytics business acquired STRATE now introduced in SA 5

7 Regional Highlights North America Steven Rothbloom appointment (1 July) to head North American time zone Shareholder Survey: Satisfaction levels at 94% Continuing success: win new ESPP business SCRIP on track to go live end September (US) & December (Canada) Prudential demutualisation (Canada) completed Consolidation of NA operations on track for completion in Dec 02 with anticipated cost savings in FY 03 6

8 Regional Highlights Major Deals Australasia TAB buyback Capital raisings - Westfield America Trust & Macquarie Infrastructure HKEx Registrars merger, MTR deferred to FY 03 Europe Won First Active Bank (170k holders) from IRG Capita HMV Media & Xstrata new floats Mercantile acquisition finalised Telkom (SA) IPO deferred to FY 03 North America HP/Compaq Takeover J.M. Smuckers spin-off 7

9 New Joint Venture with Hong Kong Exchange Announced 26 April 02 Equity interests in J/V = CPU 76%; HKEx 24% Completion date 1 June 02 Market share increased from 63% to 83% Increased representation of clients in major Hong Kong indices HKEx - excellent strategic partner for expansion into China Move to scripless trading environment anticipated in the short term Recently announced alliance between HKEx & LSE to facilitate increase in dual listings will benefit CPU 8

10 Technology Development Update SCRIP implementation on schedule - Hong Kong - completed - US - end September - Canada - end December COSMOS Options live July 02 BP live in Sep 02 Investor Centre live UK & US Workflow all regions i3 (communications technology) development ongoing 9

11 Addressing Our Priorities - Improvements Increase focus on customer service levels Maximise cross-selling opportunities locally & globally Maintain competitive advantage in established markets Continue to implement cost saving initiatives Management restructure into 3 main time zones to drive growth & improve accountability and efficiency at the regional level Strengthened management quality with new appointments Expanded the composition and expertise of the Board 10

12 Addressing Our Priorities - Improvements (continued) Increase quality of management reporting function Enhance treasury management expertise Forecasting models rebuilt & reviewed by external consultants Monthly management reporting time frame shortened Treasury functions consolidated at HO New senior finance appointments 11

13 CPU - Time Zone Management Framework Time Zone Head Computershare Investor Services (CIS) Computershare Plan s (CPM) Computershare Analytics (CAS) Head Corporate Services Business Development CFO Computershare Document Services (CDS) Operations Client Services HR Marketing Business Controllers Call centres Operations Training Sales & Senior Relationship s Legal & Compliance Manger EDC & Workflow Client Services Corporate Actions 12

14 CPU - New Global Structure CEO CPU Limited Chris Morris European Time Zone Head Iain Saville North America Time Zone Head Steve Rothbloom Australian Time Zone Head Stuart Crosby Head Legal & Compliance Paul Tobin CFO Tom Honan Head CTS Penny Maclagan Head of Global Operations Ed Stockdale CIS UK CIS NA & COO NA CIS Australia Global Compliance Group Functions CTS Asia Head Global CDS Michael Gardner CIS Ireland CPM NA CIS Hong Kong Company Secretary Investor Relations CTS Europe Head Global Analytics Global Services Paul Conn CIS South Africa CAS NA CIS New Zealand Taxation CTS NA Head Global Plans TBA CIS Germany CPM Australia Treasury Exchange Systems Head Market Structure Dudley Chamberlain CPM Europe CAS Asia Group Accountant CAS Europe CFO NA CFO Europe CFO Asia 13

15 New Global Structure - Main Features Release CEO from involvement in day to day running of business Reporting structure for global operations based on 3 time zones (Europe, North America and Australasia) increased accountability for revenue & profit growth at the regional level consolidate cost base into regional hubs - drive efficiency Global product specialists report to CEO and provide consultation to time zone management Technology services for each time zone remain consolidated reporting to Penny Maclagan Finance for each time zone reports to CFO as do treasury, taxation and investor relations Company secretarial and corporate finance functions now separated 14

16 New Senior Management Appointments Iain Saville - European Time Zone Head Steve Rothbloom - North America Time Zone Head Stuart Crosby - Australasia Time Zone Head Paul Tobin - Head of Legal and Compliance Tom Honan - CFO Darryl Corney - Senior Executive Europe Ed Stockdale - Head of Global Operations Michael Gardner - Head of Operations - Australia 15

17 Board Breadth & Expertise - New Appointments Sandy Murdoch Non- Executive Chairman Chris Morris CEO Penny Maclagan Head of IT Tony Wales Non-Executive Peter Griffin Non-Executive New Appointments Iain Saville CBE European Time Zone Head UK capital markets expertise & senior relationships Formerly CEO CrestCo (UK) Phil DeFeo Non-Executive US capital markets expertise & senior relationships Chairman & CEO of Pacific Exchange 16

18 Growth - Key Areas of Focus Customer Relationships & Service Quality Integrated Product Offering Technology Expertise Cost Efficiency 17

19 Enhance Customer Relationships and Service Quality New structure aligns sales and marketing and relationship managers function into time zone regional responsibility customer centric focus maximise cross-selling opportunities High profile market appointments to CPU Board that enhance senior corporate relationships & brand recognition UK - Iain Saville US - Phil DeFeo Senior operations appointment to Australian registry (Michael Gardner) Co-ordination of global Analytics business (Paul Conn) Benchmark customer service satisfaction levels in all regions 18

20 Expand Product Offering Employee share and option plan administration CPU largest provider worldwide Conservatively est. value over $1bn annually Closely aligned to HR outsourcing business Expand Analytics business to provide more services especially for global companies Outstanding success of CDS - further potential Specialised shareholder services - proxy solicitation, odd lot programs, call centre campaigns Focus on other initiatives that capitalise on core skills & infrastructure eg. mutual funds / trusts 19

21 Leverage our Expertise in Technology Infrastructure now in place to add incremental businesses at minimal cost eg: South Africa Mercantile Hong Kong Hong Kong Exchange UK Deutsche Bourse Increased focus on allocation of IT resources Return on investment criteria & benchmarks Business case feasibilities to determine priorities Cost /benefit accountability with Time Zone Heads 20

22 Ongoing Cost Efficiency Program Increased focus on staffing costs Critical evaluation of costs short term tactical reductions long term strategic opportunities Increased fiscal discipline emphasis on forecasting/ planning business performance business case assessment on all new projects sophisticated project management principles for all major projects in progress 21

23 Summary Tracking at low end of FY 02 forecast range in line with market conditions Despite difficult conditions we have continued to drive our business, win new clients & increase market share Major technology projects in progress remain on schedule FY 02 Priorities have been addressed and improvements now in place Future growth opportunities and strategy are well defined New management structure and senior appointments provide the appropriate foundation in which to to accelerate organic growth 22