Computershare | ANNUAL REPORT | 2018

This financial report covers the consolidated entity consisting of Computershare Limited and its controlled entities.

The 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 Australia

The financial report was authorised for issue by the directors on 17 September 2018. The company has the power to amend and reissue the financial report.

A separate notice of meeting including a proxy form is enclosed with this financial report.

CONTENTS*

OVERVIEW

Financial highlights and financial calendar

3

Chairman's Report

4

CEO's Report

5

Computershare at a glance

7

Key financial metrics

9

Growth

11

Profitability

13

Capital Management

14

Corporate Responsibility

15

People

19

Group Operating Overview

21

Business Strategies and Prospects

23

GOVERNANCE

Corporate Governance Statement

25

Directors' Report

38

Auditor's Independence Declaration

55

FINANCIALS

Consolidated Statement of Comprehensive Income

56

Consolidated Statement of Financial Position

57

Consolidated Statement of Changes in Equity

58

Consolidated Cash Flow Statement

59

Notes to the Consolidated Financial Statements

60

REPORTS

Directors' Declaration

106

Declaration to the Board of Directors

107

Independent Auditor's Report

108

FURTHER INFORMATION

Shareholder information

114

Corporate directory

115

* 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' Report.

FINANCIAL HIGHLIGHTS

STATUTORY RESULTS

Total revenue Net profit after non-controlling interests (NCI) Statutory earnings per share

MANAGEMENT ADJUSTED RESULTS

Management EBITDA Management net profit after NCI Management earnings per share Management earnings per share (in constant currency)

BALANCE SHEET

Total assets Total shareholders' equity

PERFORMANCE INDICATORS

Free cash flow (excluding SLS advances) Net debt to management EBITDA (excluding non-recourse debt)* Return on equity* Staff numbers

JUNE 2018

JUNE 2017 % CHANGE

2,289.9 million 300.1 million 55.17 cents

2,105.8 million 266.4 million 48.76 cents

8.7% 12.6% 13.1%

622.6 million 344.7 million 63.38 cents 62.10 cents

540.8 million 297.3 million 54.41 cents 54.41 cents

15.1% 15.9% 16.5% 14.1%

3,888.2 million 1,333.4 million

3,947.0 million 1,237.0 million

-1.5% 7.8%

379.2 million 1.33 times 26.7% 18,360

362.2 million 1.60 times 25.6% 17,706

4.7% -0.27 times Up 110 bps

For a reconciliation between statutory and management adjusted results, refer to note 4 in the notes to the financial statements.

* 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 the 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.

Where constant currency (CC) references are used in this report, constant currency equals FY2018 results translated to USD at FY2017 average exchange rates.

FINANCIAL CALENDAR

2018

22 AUGUST 17 SEPTEMBER 14 NOVEMBER

Record date for final dividend

Final dividend paid

The Annual General Meeting of Computershare Limited ABN 71 005 485 825

LOCATION:

Computershare Conference Centre Yarra Falls, 452 Johnston Street Abbotsford, Victoria 3067

TIME:

10.00am

2019

13 FEBRUARY

Announcement of financial results for the half year ending 31 December 2018

3

Computershare Annual Report 2018

CHAIRMAN'S REPORT

In FY2018 Computershare delivered the largest profit recorded in our history, with the fastest rate of earnings growth since FY2009.

We continue to make good progress in executing the growth, profitability and capital management strategies that are driving our solid performance. Importantly, we did what we said we would do and we are delivering to plan.

YEAR IN REVIEW

FY2018 saw Computershare's profit trajectory improve. We upgraded our FY2018 earnings guidance twice during the year landing on "12.5% with a positive bias". It is pleasing to deliver Management EPS growth of 14.1% in constant currency.

Execution is at the core of Computershare. In FY2018 we completed several large and complex transactions in some of our events-based businesses that achieved great outcomes for our customers, while also progressing our cost-out programmes, laying the foundations for future growth.

We continue to build out our mortgage services growth engine to plan, and we are tracking towards our target returns.

The Equatex acquisition is another highlight of our year. This purchase will enhance our scale, capabilities and earnings in employee share plans, our other strategic growth engine.

Our profitability strategies are driving margin expansion. Register maintenance is a high-quality business which continues to perform, and, after a period of compression, the business achieved modest revenue growth and further margin expansion in the second half of the year. Margin income also improved, reaching almost $100 million in the second half of the year, demonstrating the significant leverage we have to rising interest rates.

Computershare continues to generate strong free cash flow, an inherent feature of our business model. This cash flow self-funds our technology initiatives, growth plans and strategic investments as well as supporting our share buy-back and reducing debt. Our financial position is strong.

The final FY2018 dividend is AU 21 cents, a rise of 10.5% on pcp, which brings the total dividend for the year to AU 40 cents, an overall increase of 11.1% year on year.

OUTLOOK

We continue to lay the foundations for sustained growth at Computershare. Our strategy to deliver multi-year earnings growth is on track.

In FY2019 we expect to deliver around 10% growth on FY2018 Management EPS in constant currency. We expect stronger contributions from mortgage services, employee share plans and margin income, and we will continue to execute our cost-out programmes. The outlook for corporate actions and fee income from some of our larger events looks slightly more subdued at this stage than in FY2018.

ACKNOWLEDGMENTS

Computershare is committed to delivering more value to our shareholders, customers and communities. On behalf of my fellow directors, I thank you for your support as a shareholder and look forward to your continued involvement in FY2019.

I would also like to thank all of our people around the world for their tremendous efforts in delivering great outcomes for our customers and, in turn, these financial results. It is Computershare's special culture of `doing the right thing' that is both our most important asset and our most significant competitive strength.

Finally, I thank Stuart Irving, our CEO and President, for his inspirational leadership and tireless commitment to our company, and the rest of my fellow board members for their expertise, skills and support.

Simon Jones Chairman

4

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