REGIONAL PERFORMANCE

Regionally, revenues were apportioned between Asia Pacific 30%, North America 37% and Europe, Middle East and Africa (EMEA) 33%, which is broadly consistent with FY2002.

EBITDA was apportioned between Asia Pacific 40%, North America 27% and EMEA 33%. The North American EBITDA contribution has increased from 18% at December 2002 demonstrating a significant improvement in their profitability in the 2nd half. The 2nd half EBITDA splits were Asia Pacific 37%, North America 32% and EMEA 31%.

The Asia Pacific region contributed revenues of $214.6 million and EBITDA of $53.6 million. A decline in registry performance was partly offset by improved contributions from the Plans and Document Services businesses.

The EMEA region contributed revenues of $231.9 million and EBITDA of $44.3 million. The Plans business experienced significant growth during the year. With the exception of the Technology Services business, all other European businesses results were unfavourably impacted by the market conditions.

The North American region contributed revenues of $258.8 million and EBITDA of $36.0 million. Investor Services and Plan Managers businesses were considerably down on last year, reflecting the unfavourable market conditions. All other businesses, including Canada’s Corporate Trust business, generated improved results on last year.

INVESTMENT ANALYSIS

Technology expenditure increased 3% to $82.5 million (excluding external bureau costs). Development expenditure of $38.6 million continued to be expensed. Development and infrastructure expenditure increased by 9% and 15% respectively while maintenance spend decreased by 9%.

Capital expenditure totalled $17.9 million, down $39.0 million on FY2002.Capital expenditure included occupancy upgrades of $1.7 million, technology infrastructure of $12.8 million and Document Services equipment of $1.0 million.

Computershare also acquired the software rights to the trading systems and settlement and clearing systems of EFA Group for $7.4 million.

Computershare continued to expand in the key US market with the acquisition of businesses including Charles Schwab Corporate Services’ Employee Stock Purchase Plan business for $1.7 million and the stock transfer business previously owned by Fifth Third Bancorp for $3.2 million.

Computershare also expanded its strategic relationships through associate businesses including:

a 49% interest in Deutsche Börse Computershare GmbH for $9.5 million;
a 27% interest in Pepper Technologies for $6.6 million, and
a 30% interest in National Registry Company of Russia for $1.5 million.

In addition, Computershare invested $8.6 million in shares in listed companies, including the New Zealand Stock Exchange.

Computershare acquired 18.7 million (3.38%) of its ordinary shares through an on-market buy back, for $38.4 million (an average price of $2.05 per share).

BALANCE SHEET AND CASH FLOWS

Total assets were $894.4 million. Shareholders funds decreased by 10% to $588.4 million due to the share buy back and the effect of foreign currency translation.

Cash flows from operations were $76.2 million reflecting profit generation and improved working capital management.

Debtor days outstanding are 67 days, down from 70 days at June 2002. This is still unacceptably high and further actions will be taken to address this in the early stages of FY2004. Payable days outstanding declined to 43 days.

Net borrowings increased by $43.2 million to $77.7 million to fund the share buy back, increased dividends and acquisition of, and investments in businesses. Gearing – net debt to equity – increased to 13.2% from 5% over the past year.

During FY2003, Computershare managed funds of between $3.7 billion and $5.5 billion. Our strategy is to minimise downside risk in the current low interest rate environment. 38% of funds are not exposed to interest rate movements and effective hedging is in place for 71% of the remaining exposed funds.

POST BALANCE DATE

There have been no significant events since the end of the financial year.