The EMEA region comprises the United Kingdom, Ireland, Channel Islands, South Africa and Germany.

REGIONAL SUMMARY

During the last year we have looked closely at the organisation and implemented a series of changes to improve financial returns. The restructuring the business operations in the UK will deliver significant benefits that accrue in FY 2004. The introduction of electronic shareholdings required us to restructure operations in South Africa, (where we work for 90% of listed companies) and staff numbers were reduced from 671 to 468.

There has been careful investment in businesses in potential growth areas for the future. Computershare acquired a 27% interest in Pepper AG to provide issuers with sophisticated tools to analyse and communicate with retail shareholders. We also purchased a 30% interest in NRC (National Registry Company of Russia) to extend our footprint in the region.

Further diversification from core registry services is progressing with alternative revenue streams developing well despite adverse market conditions. There has been consistent growth in Plan Managers’ income. Revenues from CDS from non-registry clients increased to 37% of billing. In addition the introduction of new services for issuers such as Shareholder Solutions, SRM, and Proxy Solicitation received a positive response in all regions, and is beginning to generate returns.

Changes in the management team have resulted in the appointment of Rob Chapman as Managing Director, EMEA Region.

UNITED KINGDOM

INVESTOR SERVICES
(OUR SHARE REGISTRY)

The Year in Review

During the course of the year, management has focused on streamlining operations to reduce the cost base. We implemented our centralisation and restructuring policy that resulted in a reduction in employee numbers together with a consolidation of operational processing in Bristol. This has delivered some savings this financial year and will deliver significant reductions in the overall cost base in FY 2004.

The business concentrated on drawing together the services Computershare offers to issuers into a more integrated offering. We have successfully introduced a range of services for issuers including proxy voting and corporate action solicitation, proxy telephone voting, premium broker line, Open Ended Investment Companies (OEICs) management, and IPO registration.

Low-cost dealing services have been promoted to issuers and revenues have increased in employee share plans dealing and telephone dealing.

Market Conditions

Financial markets in the UK have contracted in the last year, with a reduction in the number of listed companies; the value of trades on the London Stock Exchange has remained static. As a result the level of corporate actions was reduced with European IPOs down from 309 in 2001 to 174 in 2002.

There has been market consolidation in the registry business with the acquisition of Northern Registrars by a competitor, and continuing strong price competition for the limited amount of available new business. This has impacted our core business, and as a result management has taken action to ensure that all resources – staff, capital, investment in technology – are deployed effectively. We are continuing to make investments in order to automate our processes for greater efficiency, so when market activity picks up we will benefit from a significantly reduced cost base. Interest rates in the UK are at a 50 year low, which has a clear impact on margins.

Despite adverse market conditions, the business has gained two major clients where we were successful in introducing them to products which help to reduce the cost of servicing shareholders while continuing to meet their legal obligations and protecting their corporate reputations.

Significant Transactions

• Whitbread plc transferred their registry to Computershare following the award of the SAYE and Executive Options plans to CPM in the previous year.
• The Shareholder Solutions business gained the Bradford and Bingley program to trace 75,000 unclaimed shareholders.
• Shareholder Relationship Management projects have been run for 15 clients.
• 123 Corporate action projects have been undertaken including Marconi, Boots, Kingfisher, Rolls-Royce and Arcadia.
• Delisting and the first liquidation payments were managed for RT Group plc (formerly Railtrack Group plc, who went into voluntary liquidation).