COMPUTERSHARE ANNUAL REPORT 2017

1 COMPUTERSHARE ANNUAL REPORT 2017 This financial REPORT covers the consolidated entity consisting of COMPUTERSHARE Limited and its controlled financial REPORT is presented in United States dollars (USD), unless otherwise stated. COMPUTERSHARE Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: COMPUTERSHARE Limited Yarra Falls 452 Johnston Street, Abbotsford Victoria 3067 AustraliaThe financial REPORT was authorised for issue by the directors on 18 September 2017 . The company has the power to amend and reissue the financial separate notice of meeting including a proxy form is enclosed with this financial *OVERVIEWF inancial highlights and financial calendar4 Chairman s REPORT 5 CEO s Report6 COMPUTERSHARE at a glance8 Key financial metrics10 Growth12 Profitability14 Capital Management15 Corporate Responsibility16 People18 Group Operating Overview20 Business Strategies and Prospects22 GOVERNANCEC orporate Governance Statement24 Directors Report36 Auditor s Independence Declaration52 FINANCIALSC onsolidated Statement of Comprehensive Income53 Consolidated Statement of Financial Position54 Consolidated Statement of Changes in Equity55 Consolidated Cash Flow Statement56 Notes to the Consolidated Financial Statements57 REPORTSD irectors Declaration104 Declaration to the Board of Directors105

2 Independent Auditor s Report106 FURTHER INFORMATIONS hareholder information113 Corporate directory114* The Chairman s REPORT , Chief Executive Officer s REPORT , Group Operating Overview and Business Strategies and Prospects comprise our Operating and Financial Review (OFR) and form part of the Directors COMPUTERSHARE ANNUAL REPORT 2017 FINANCIAL HIGHLIGHTSFor a reconciliation between statutory and management adjusted results, refer to note 4 in the notes to the financial These financial indicators are based on management adjusted results. Management adjusted results are used, along with other measures, to assess operating business performance. The Group 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.

3 Management adjustment items that were income to the Group are included in statutory results as other income and therefore management total revenue is consistent with statutory total revenue. Return on equity is calculated as management NPAT after NCI over average monthly shareholders The June 16 balance has been restated to reflect the correction of an immaterial prior period error which resulted in the reduction of the Milestone carrying value by $ Reclassification of dividends received from associates and joint ventures from investing cash flows to operating cash flows in June constant currency references are used in this REPORT , constant currency equals FY2017 results translated to USD at FY2016 average exchange 2017 JUNE 2016% CHANGESTATUTORY RESULTST otal revenue 2, million 1, million profit after non-controlling interests (NCI)

4 Million million earnings per share cents cents ADJUSTED RESULTSM anagement EBITDA1 million million net profit after NCI1 million million earnings per share1 cents cents SHEETT otal assets2 3, million 3, million shareholders equity2 1, million 1, million INDICATORSFree cash flow (excluding SLS advances) debt to management EBITDA (excluding non-recourse debt)1 timesReturn on Down 130 bps Staff numbers 17,706 17,839 FINANCIAL CALENDAR2017201823 AUGUST 2017 Record date for final dividend18 SEPTEMBER 2017 Final dividend paid14 NOVEMBER 2017 The ANNUAL General Meeting of COMPUTERSHARE Limited ABN 71 005 485 825 LOCATION: COMPUTERSHARE Conference CentreYarra Falls, 452 Johnston StreetAbbotsford, Victoria 3067 FEBRUARY 2018 Announcement of financial results for the half year ending 31 December 2017 5 CHAIRMAN S REPORTYEAR IN REVIEWFY2017 marked an important inflection point in COMPUTERSHARE s earnings.

5 We delivered management EPS in line with upgraded guidance, an increase of on FY2016 in constant currency terms, which is a solid result given the challenges we faced during the year. These included cyclically depressed corporate action revenues, the lowest margin income yield in the Company s history and a higher tax rate. Positively, in the second half, margin income improved for the first time in several years. Given these challenges, our results show the strength of our underlying business carefully designed deliberate strategies to drive this strengthened performance and earnings potential. In FY2016 we assessed our growth opportunities, invested in our capabilities and improved our competitive strengths. In FY2017 we made encouraging progress and delivered both earnings growth and strong cash flow; with our growth engines and cost out management strategies contributing to our profitability.

6 We are building significant earnings potential with our growing mortgage services businesses and our global share plans business. At the end of this financial period, our share plans business had around $125 billion of assets under administration. Adding in our multi-stage cost out program and the $ billion of average client balances that we manage, we believe we can deliver sustained earnings balance sheet also continues to strengthen given our significant cash flow and our moves to simplify the COMPUTERSHARE business. We sold both our Melbourne headquarters and our investment in INVeSHARE during the year. Our debt leverage ratio is now below our policy range, enabling us to announce a new share buy-back program. The final FY2017 dividend is AU 19 cents, a rise of , which brings the total dividend for the year to AU 36 cents, an overall increase of for the year.

7 OUTLOOKMost significantly, we are positioning COMPUTERSHARE for a period of sustained earnings growth. FY2017 was the beginning of a multi-year earnings growth phase. Our starting guidance for FY2018 assumes around growth in management EPS in constant we do not specifically guide to management EBITDA, we do expect it to grow at a faster rate than EPS. In bridging the two, we note that amortisation and the tax rate are increasing as our US businesses, including mortgage services, contribute a larger share of Group is well placed to deliver more value to shareholders, clients and communities. On behalf of my fellow Directors, I thank you for your support as a shareholder and look forward to your continuing involvement in FY2018. I would also like to thank all of our people around the world for their dedicated efforts in delivering these results.

8 I know you are extremely capable and deeply committed to delivering the best outcomes for clients, and that every day you live COMPUTERSHARE s special culture by doing the right thing . Finally, I would also like to thank Stuart Irving, our CEO and President, for his talented and dedicated leadership; and the rest of my fellow board members for their expertise, skills and Jones ChairmanI am pleased to REPORT that COMPUTERSHARE delivered solid earnings growth, strong free cash flow and an increased dividend for shareholders in FY2017. With our growth, profitability and capital management strategies beginning to drive improved returns, we are entering a new period of sustained earnings growth at COMPUTERSHARE ANNUAL REPORT 2017 Management EPS came in at cents, an increase of EBITDA was $ million, an increase of Around 55% of our earnings were delivered in the second margin income, underlying EBITDA was up by BUILDING SUSTAINED EARNINGS GROWTHOur growth, profitability and capital management strategies are driving our performance and importantly, our earnings power.

9 This earnings power is important because it gives us the confidence to highlight our belief that we are at the beginning of a multi-year earnings growth phase. GrowthOur self-funded growth engines have performed strongly in FY2017. Mortgage services increased revenues by 71%. On a combined basis across the US and UK, this business now accounts for almost 25% of Group revenues; it s a sizeable business with rising profitability. EBITDA effectively doubled to $78 million. The two main lead indicators in this business are unpaid principal balances (UPB; the value of loans under service) and service quality. These are the foundations for building a profitable and sustainable are executing to plan in US mortgage services, and continue to build towards scale and the anticipated returns we affirmed at our Investor and Analyst Briefing in April.

10 At the scale of servicing approximately $100 billion of UPB, we are seeking to build a business that will deliver 20% profit before tax margins and 12-14% post tax, post maintenance capex free cash flow return on average invested the end of June the UPB we serviced in our US business grew to $ billion, up from $ billion and in the UK, we serviced 64 billion. Our reputation for service quality also continues to grow and we continue to be rated as one of the world s best mortgage servicers by rating agencies. In this sensitive market, where service quality can determine regulatory risk, our reputation for quality is creating new servicing opportunities for us with the major banks and mortgage bond holders. The UKAR contract is a good news story, the integration is ahead of plan and the anticipated synergy benefits are being delivered, with more to come.