COMPUTERSHARE ANNUAL REPORT 2008

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DIVIDENDSThe following dividends of the consolidated entity have been paid or declared since the end of the preceding financial year:Ordinary sharesA final dividend in respect of the year ended 30 June 2007 was declared on 15 August 2007 and paid on 21 September 2007.This was an ordinary dividend of AU 9.0 cents per share unfranked, amounting to AU$51,638,553 (US$46,162,730).An interim ordinary dividend in respect of the half year ended 31 December 2007 was declared on 13 February 2008 and paid on25 March 2008. This was an ordinary dividend of AU 10.0 cents per share franked to 20.0% amounting to AU$55,565,406(US$49,672,672).A final dividend in respect of the year ended 30 June 2008 was declared by the directors of the Company on 13 August 2008, tobe paid on 19 September 2008. This is an ordinary dividend of AU 11.0 cents per share, franked to 30.0%. As the dividend was notdeclared until 13 August 2008 a provision has not been recognised as at 30 June 2008.REVIEW OF OPERATIONSOverviewThe FY08 result demonstrated the capacity of the Group to grow revenue and earnings despite conditions weakening in majormarkets. Interest rate levels fell in North American markets, nonetheless margin income grew on FY07 due to increased clientbalances. Continued focus on controllable costs and the ability to keep cost increases well below the rate of revenue growth againcontributed to the record result. Favourable exchange rate movements and share buy back activity also contributed to earnings pershare growth.Computershare delivered record financial earnings, increasing earnings per share (on a management adjusted basis) by 41% from36.68 to 51.61 cents per share. This represents Management net profit after Outside Equity Interest (“OEI”) of $290.4 million.Total revenues increased by 12% to $1,582.5 million while operating cash flows grew 8% to $347.3 million.Due to business growth, operating expenses have increased 5% compared to the prior year but remain lower than the 12% increasein operating revenue. Depreciation and amortisation expenses remained consistent year on year.The Group’s effective tax rate has increased from 25.8% for the year ended 30 June 2007 to 26.0% in the current financial year.The Group’s financial position remains strong with total assets of $2,238.0 million being financed by shareholders’ funds totalling$770.2 million.02-13Overview14-36Governance37-88FinancialsRevenuesRegionally, revenues were apportioned between Asia Pacific 28%, North America 48% and EMEA 24%.The Asia Pacific region contributed total revenues of $437.0 million (2007: $319.5 million). North America contributed total revenuesof $766.9 million (2007: $782.4 million). The EMEA region contributed total revenues of $371.0 million (2007: $311.3 million).Operating costsOperating expenses were $1,106.0 million an increase over prior year of 5%. Cost of sales remained constant whilst personnel costsgrew 9%. Corporate & other direct costs decreased 16% and 14% respectively.Total technology costs increased to $157.2 million (2007: $132.0 million) which includes $64.8 million of research and developmentexpenditure which has been expensed in line with the Group’s policy.89-92ReportsWorking capitalImproved profits contributed to operating cash flows of $347.3 million for the 2008 financial year. This is an improvement of$26.3 million or 8% on the previous financial year. Capital expenditure of $42.8 million was an increase of $17.1 million over 2007due largely to post acquisition property related expenditure. Days sales outstanding increased slightly to 44 days (2007: 43 days).Ordinary sharesOn 15 November 2006, Computershare announced an on-market buy-back of up to 25 million ordinary shares for capitalmanagement purposes. The buy-back commenced in December 2006 for a period of six months. On 24 May 2007 Computershareannounced that the buy-back would be extended by a further six months so that it continued until 29 November 2007 or earlierif the maximum number of shares were bought back before that date. On 15 August 2007 Computershare announced that thebuy-back was increased to a total of 45 million ordinary shares under the existing program. The buy-back period was also extendedto 31 January 2008.From 1 July 2007 to 18 October 2007, the Company purchased and cancelled 35,205,009 ordinary shares at a total cost ofAU$343.2 million with an average price of AU$9.75 and a price range from AU$8.76 to AU$11.00.On 18 October 2007, Computershare completed the on-market buy-back program when the total number of shares boughtback and cancelled reached 45 million. The total cost of the buy-back program was AU$445.8 million with an average price ofAU$9.91 and a price range from AU$8.52 to AU$11.00.93-96Further InformationPAGE 23
Directors’ ReportEarnings per share2008 2007Basic earnings per share 50.12 39.08Diluted earnings per share 49.89 39.00Management basic earnings per share 51.61 36.68Management diluted earnings per share 51.38 36.61The management basic and diluted earnings per share amounts have been calculated to exclude the impact of significant items(refer note 7 in the financial report) in order to make the earnings per share amounts for the current year more comparable withthe earnings per share amounts for 2007.SIGNIFICANT CHANGES IN ACTIVITIESSignificant changes in the affairs of the consolidated entity during the financial year that are reported in the consolidated financialstatements were:Acquisitionsa) On 4 July 2007, Computershare acquired Datacare Software Group Limited based in Ireland, a supplier of entity managementand subsidiary governance software.b) On 24 July 2007, Computershare acquired the transfer agency business of UMB Bank based in Kansas City, USA.c) On 8 October 2007, Computershare acquired Restricted Stock Systems, Inc. based in the United States, which provides officers,directors and affiliates of public companies (“insiders”) a software solution when buying or selling company securities.d) On 18 October 2007, Computershare acquired Administar Services Group LLC based in the United States, which providesadministration services related to the settlement of securities and consumer class action litigation as well as Chapter 11bankruptcy litigation.e) On 1 November 2007, Computershare acquired Four Points BVBA based in Belgium, which provides meeting services.f) On 20 December 2007, Computershare acquired Ezicomms Pty Ltd based in Australia, which provides meeting services.g) On 1 February 2008, Computershare acquired control of VEM Aktienbank AG (VEM). VEM is a corporate actions bank listedon the regulated market of the Munich Securities Exchange and traded on the open market of the Frankfurt Stock Exchange.It provides services for execution of initial public offerings and other corporate actions as well as designated sponsoringmandates.h) On 3 March 2008, Computershare acquired Machine Dreams Inc.’s business based in USA, which provides audience responsesystems which bring sophisticated interactive communications and data capture to events and meetings.i) On 26 March 2008, Computershare acquired QM Technologies Limited based in Australia, which provides essential mail andcustomer communication management services.j) On 7 April 2008, Computershare acquired Strand Business System Limited based in the United Kingdom, which provideselectoral management software and services.k) On 1 June 2008, Computershare acquired Audience Alive Pty Ltd based in South Africa, which provides interactive votingsystems for meetings and conferences.In the opinion of the directors there were no other significant changes in the affairs of the consolidated entity during the financialyear under review that are not otherwise disclosed in this report or the consolidated accounts.SIGNIFICANT EVENTS AFTER YEAR ENDNo matter or circumstance has arisen since the end of the financial year which is not otherwise dealt with in this report or in theconsolidated financial statements that has significantly affected or may significantly affect the operations of the consolidated entity,the results of those operations or the state of affairs of the consolidated entity in subsequent financial years, except that:Acquisitions post 30 June 2008On 13 August 2008, Computershare agreed principal terms for the acquisition of Busy Bee Childcare Vouchers Limited, one of theleading UK based managers and administrators of childcare voucher schemes. The acquisition was completed on 1 September2008 with consideration paid of GBP£90 million. The acquisition is expected to be EPS positive in FY2009 and increasingly accretivethereafter. The impact on earnings is not expected to be material to the Group. It is impracticable to disclose the value of assets andliabilities information due to the proximity to year end.Debt FacilityDuring FY08 Computershare increased its bank debt facilities from AU$ 400 million to US$ 750 million via one and three yeartranches. The lender group increased from two to five lenders.Post balance date on 29 July 2008 Computershare issued notes in the US Private Placement market, raising US$235 millionmaturing in 10 years for a fixed coupon of 6.34%.CentsCentsPAGE 24 Computershare Annual Report 2008
Page 7 and 8: Management Discussion and AnalysisC
Page 9 and 10: North America Regional OverviewDesp
Page 12: 2008 HIGHLIGHTS> Acted for all majo
Page 16 and 17: As at the date of this Annual Repor
Page 18 and 19: 4. BOARD INDEPENDENCEThe Board has
Page 20 and 21: With limited exceptions, the Compan
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Page 28 and 29: No incentives, either short or long
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Page 44 and 45: Impairment of assetsAll non-current
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Page 48 and 49: HedgingThe Group documents at the i
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Page 54 and 55: Reconciliation of weighted average
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Page 58 and 59: ConsolidatedParent Entity2008 2007
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Page 66 and 67: Nature and purpose of reservesi. Fo
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The assets and liabilities arising
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Computershare Limited Closed Group
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33. RELATED PARTY DISCLOSURESKey ma
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(a) Interest rate riskInterest rate
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The consolidated entity minimises c
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(c) OtherThe Group is subject to re
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SECONDARY BASIS - Business Segments
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40. ASSOCIATED ENTITIESDetails of i
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Directors’ DeclarationIn the dire
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Independent Auditor’s Report02-13
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Shareholder InformationThis section
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Office Locations02-13Overview14-36G
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HEAD OfficeComputershare LimitedABN
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COMPUTERSHARE ANNUAL REPORT 2008

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