COMPUTERSHARE ANNUAL REPORT 2008

Management Discussion and AnalysisComputershare produced its fifth consecutive year of record revenues, earnings andoperating cash flows.Management earnings per share increased 41% to 51.61 cents per share, compared to36.68 cents per share in FY2007. Reported basic earnings per share was 50.12 cents.Management net profit after Outside Equity Interest (“OEI”) was $290.4 million, anincrease of 32% over FY2007. Reported net profit after OEI was $282.0 million.The final dividend was AU11 cents per share, 30% franked. Total dividends for the yearwere AU21 cents per share, an increase of 24% on FY2007 (AU17 cents per share).FINANCIAL PERFORMANCETotal revenues increased 12% to a record $1,582.5 million. Register maintenance revenues grew 13% driven by improved pricingoutcomes in Canada, Australia and the UK, increased holders in Hong Kong from continued Chinese IPO activity, a full yearcontribution from smaller US registry acquisitions and continuation of the growth trend in India and Russia. Corporate actionrevenue increased 20% with a strong run of IPOs in Hong Kong in the first half and the emergence of capital reorganisations (mainly inthe UK and Australia) offsetting the effects of equity and financial market instability, which otherwise slowed the second half.Communication Services revenue grew 39%, driven mainly by the Permail and QM Technologies acquisitions in Australia. Fund Servicesrevenue was 21% lower than the record achieved in FY2007 due to a lack of major transactions in the US Mutual Fund sector. This waspartially offset by an 88% growth in Indian mutual fund revenues. External Technology and other revenues grew 28% underpinned bythe contributions from the Datacare Software Group, Restricted Stock Systems and VEM Aktienbank AG acquisitions.Included in the overall revenue growth was a 25% increase in margin income as higher cash balances and favourable exchange ratetranslation more than offset the second half decline in northern hemisphere interest rates.Total operating expenses were again contained in FY2008, increasing 5% to $1,106.0 million as against the 12% increase in revenues.Management EBITDA was $479.2 million, an increase of 29% on the previous year. If the US Dollar had remained at FY2007 levels,Management EBITDA would have been approximately $455 million, a constant dollar increase over FY2007 of 23%. ManagementEBITDA Margin increased from 26% in FY2007 to 30% in FY2008. Borrowing costs increased 34% to $41.5 million as a result ofincreased debt levels from acquisitions and capital management initiatives.Depreciation increased 25% to $28.6 million due to additional depreciation from acquired businesses. Amortisation increased 21% to$11.1 million due to additional spend on property leasehold improvements.The headline effective tax rate for the year ended 30 June 2008 was 26.0% (FY2007 25.8%). The normalised effective tax rateadjusted for specific management adjustments (being recognition of tax losses and non-assessable gain on the sale of controlledentities) for the period ending 30 June 2008 was 26.4% (FY2007 28.5%).REGIONAL PERFORMANCERegionally, revenues were derived from North America 48%, EMEA 24% and Asia Pacific 28%. EBITDA contribution by region wasNorth America 51%, EMEA 26% and Asia Pacific 23%.The North American region contributed revenues of $766.9 million and EBITDA of $246.2 million. The region was down marginallyin revenue terms but was able to deliver a 16% uplift in EBITDA. The US and Canadian registry businesses were both flat despite thenegative impact of sizeable falls in interest rates, whilst the Canadian Fixed Interest business delivered another strong performance.Transactional-based businesses such as Fund Services and Corporate Proxy were down on the prior corresponding period.Communication Services experienced improved financial outcomes in the US, but was flat in Canada. Employee Plans results weremixed; the Canadian business matched last year’s result whereas the US business fell below expectations partially as a result of loweractivity as equity markets weakened. Smaller US acquisitions contributed to the improved EBITDA outcome.The EMEA region contributed revenues of $371.0 million and EBITDA of $124.6 million. EMEA regional improvement was driven bywidespread contributions. The UK Registry and UK Plans businesses again underpinned the overall UK business expansion whilst thesmaller businesses of Russia, Ireland and South Africa all delivered markedly improved financial outcomes. Full year contributions fromThe Deposit Protection Service (DPS) contract as well as the Datacare acquisition aided the region’s substantial progress. Germany waslargely flat on FY2007, as was the Interactive Meetings Ltd (IML) business.The Asia Pacific region contributed revenues of $437.0 million and EBITDA of $108.4 million. Asia Pacific’s improvement was drivenby another strong result from the Australian Registry business and substantial uplifts in the Hong Kong and Indian businesses. TheCommunication Services business in Australia benefited from the QM Technologies acquisition in the fourth quarter of FY2008, whilstthe Australian Employee Plans, Fund Services and Corporate Proxy businesses were flat on FY2007.PAGE 6 Computershare Annual Report 2008