agm notes

CPU AGM

11/11/2009





Presentation by Stuart Crosby:



This financial year we have gone flat out to stand still

Costs are down 6% but our margin is up 32% will it continue who knows?

Dividends have been held but we increased our franking credits to 50% and anticipate this going forward.

Efficiency of technology has helped us as well as employing more temporary staff, if we don’t use them they drop out with less cost for us.

Restructure we have bought out some local registry companies; we were able to back out o maintaining branches and costs due to the GFC. All salaries are frozen. Concerned that interest held in banks would drop dramatically this did not happen and they continued to pay a higher interest rate, we are defying gravity and gravity will get us. Reporting in $US hopping to reduce the exchange rate this has been tough given the A$ went from 60cents to currently 93cents.



Future

Cost management remains a priority. The U.S. and Canada doing it tough. We are taking advantage of competitors; we are over investing in custodian proxy votes which have grown the business and locks in existing clients. Transfer agency has picked up a lot of new clients.

Canada we have a dominant position.

U.K. insolvency and nationalization has damaged business. Pick up in insurance business.

Australia We did Myer IPO gave us 60,000 new registrations

Hong Kong Barwon Shampoo company gave us 600,000 new clients in the IPO.



Balance Sheet:

Strong balance sheet let us concentrate on the business. Debt we are happy with two half times debt if a good company comes along for accumulation.

HBOS plans we have chased this business for a long time.

Smaller registry business still acquiring and bought at good prices

Denmark and Sweden are coming along nicely.

Mergers & Acquisitions: We ask three questions.

1) Will we be any good at this?

2) Does it add value

3) Is it sensibly priced as we are shamelessly stingy



Looking Forward:

India, Russia and China is where growth will come from.

A lot of large companies want help with raising capital around the world and this is where we can come to the fore.

Shanghai significantly high representation have 8 out of 10 major clients

In the U.S. we have 20%of the market.

In the U.K. we have 25% of the market

10% of our revenue is spent on technology.



Private equity owners of competitors seem to be looking to cash out which will represent opportunities and threats. It will make our competitors more transparent.

This financial year we are tracking ahead of 2009 and improvement is expected to be better than 2009.



We will continue to look at acquisitions.

Chris Morris “My greatest fear is key personal leaving that’s why we want Deferred Long Term Incentive plan it locks in key personal. We don’t give golden handshakes”

Cheers