THE REDEFINING YEAR

2002 has been a redefining year for Computershare.

  • We have delivered steady profit levels
  • We maintained strong operating cash flows from all businesses
  • We established a new global management structure to generate higher returns from our continuing global expansion
  • We completed a critical evaluation of all areas of the business with renewed focus on margins and growth opportunities
  • We expanded our strategic relationships through joint ventures with Deutsche Börse and Hong Kong Stock Exchange
  • We acquired BT Registries in Australia and New Zealand and Mercantile Registrars in South Africa
  • We received Securities Exchange Commission approval to be an ADR agent in the United States
  • We increased the breadth and expertise of the Board which now has a majority of non-executive directors
  • We increased our half year dividend from 0.5 cents to 2.5 cents per share, fully franked.

At the same time, the company expanded its products and services platform with technology development, particularly in the area of Employee Share Plans and also commenced the establishment of its proprietary registry software, SCRIP system, in Hong Kong, the United States and Canada. Of particular importance is that the company has continued its prudent approach by expensing research and development costs totalling $36 million this year, rather than the normal industry practice of capitalising such costs.

Computershare's long-term strategy remains unchanged and our competitive advantage as the only true global provider of registry and other related services has been further strengthened by our achievements this year. Our aims are to achieve and maintain market leadership in countries where we operate, to sustain high rates of growth and attractive returns from our investments and integrated technology platform, and to expand geographically.

STRUCTURED FOR SUCCESS

A significant feature of this year has been Computershare's examination of people, processes and costs across all businesses in each country. This gave rise to the implementation of a new global management structure into three operating divisions, Europe (United Kingdom, Ireland and South Africa), North America (United States and Canada) and Asia Pacific (Australia, New Zealand and Hong Kong). With this also came a number of substantial new appointments to boost skill levels within all businesses. The regional managing directors are Iain Saville (Europe), Steven Rothbloom (North America) and Stuart Crosby (Asia Pacific). They are responsible for profitability of all businesses within their region with a focus on marketing Computershare's core strengths of technology, and global integrated product offerings.

Computershare is well equipped to face the future with confidence. Operationally, the company is on track to have its proprietary software, the SCRIP system, live in all three regions by the end of 2002. The US migration is now complete and the Canadian migration has already commenced. Following this, Computershare will have a truly global registry model which will be able to deliver efficiencies and benefits to the company's clients across the regions in which they operate.

Over the last few months there have been substantial changes to senior management including new appointments for contact centre and key operations roles. We remain committed and are determined to win major clients in all businesses globally.

OPERATIONAL ACHIEVMENTS

Key operational achievements during the year include:
Global Registry - Asia Pacific

  • Acquisition of BT Registries in Australia and New Zealand o
  • Selected registrar for over 60% of new IPOs in Australia
  • Formation of a joint venture with Hong Kong Exchanges and Clearing Limited to expand our market share and become the dominant provider of registry and related services to the Hong Kong market
  • Appointed the share registrar for the Bank of China HK listing the largest IPO in Asia this year with nearly 400,000 shareholders
  • Selected to advise the China Securities Depository and Clearing Corporation on the Chinese securities registration service