Welcome eerybody to the Computershare FY 2021 full year results presentation. Following the presentation, we will open the call for question. To ask a question during this time, please press star one on your telephone keypad. I'll now hand over to our first speaker, Chief Executive Officer, Stuart Irving. Good morning, everyone, and welcome to Computershare's FY 2021 results conference call. I'm joined today by Nick Oldfield, our Chief Financial Officer, and Michael Brown from our investor relations team. As usual, on this call, I'll take you through the key aspects of our results and the outlook for the new financial year. We did release a presentation pack to the ASX, and it's also on our website, and there's a lot of information in the deck for you. As usual on these calls, I'll focus my remarks on the opening pages of the presentation. Nick will then take you through the slides on our financial results. After some concluding remarks, we'll open up the call for questions. As a reminder, we will be talking in US dollars in constant currency unless we state otherwise. Let's start on page two of the presentation. There are really three key points I'd like to call out here. Firstly, I'm very pleased to say that we delivered a strong operating performance in the second half of the year. Earnings were 39% higher in the second half compared to the first half, and we made just over $0.30 per share of EPS in the second half. We said in February that we expected the H1 results would mark the bottom of the earnings cycle for Computershare and that earnings growth was underway, and you can see that coming through. H2 was effectively the equal best operating result, excluding margin income in Computershare's history. Secondly, our main operating businesses are performing well. We are making good progress executing on our growth plans, and we're also benefiting from high market activity levels. Without a doubt, the year had plenty of operational challenges. Margin income is frustrating with record low interest rates, and the government restrictions and U.S. mortgage services went on for longer than we expected. The strong growth in Issuer Services and employee share plans enabled us to deliver on the upgraded guidance that we provided in February. Adjusting for an increase in the annual leave provision, as many employees were restricted to home and didn't take leave, EBIT, excluding margin income, would have also been in line with guidance. As I've talked about before, strategically, a better quality Computershare is emerging. We clearly made a big step forward this year with our announcement in March. We're acquiring the assets of Wells Fargo Corporate Trust Services, a leading U.S. provider of trust and agency services to government and corporate clients. Due to complete later in the year, the acquisition accelerates our scale to a top four position in the attractive U.S. corporate trust market. It also provides Computershare with greater exposure to interest rates and positive long-term growth trends in trust and securitization products. Now, we are delighted with the acquisition. We have secured regulatory approval from the OCC since we last spoke, and we are heavily focused on the plan to first separate the business from Wells and then integrate into Computershare. On that note, I would like to thank our existing and new shareholders for supporting our capital raise to partially fund the acquisition. We had very high levels of participation in the offer, which is a great endorsement of the strategy, and I am very grateful for your support. Let's move along to page three, where we show a more detailed analysis of the results, the earnings waterfall. We bridge from the FY 2020 management EPS of $0.56 per share through to the result of $0.52 per share for the year, then show guidance on the far right-hand side for comparison. I'll walk you through the bridge. Margin income on the left was the single largest factor in the period. The drop in MI from $200 million last year to $104 million this year cost us over $0.13 per share. $0.084 of this drop was in the first half, it's the lowest level of MI for a long time for us. We averaged $20 billion of balances in the second half, which was high, partly driven by strong corporate actions activity. The average yield on the exposed balances was only 0.7%, and this was less than half the rate we earned in FY 2020. Grouping three of the next columns together, mortgage services cost us $0.10 of EPS. As we've talked about before, we took the decision to be more conservative and change the amortization period from nine years down to eight for the performing MSRs we own in the U.S. to reflect the elevated level of runoff in the market. That cost us $0.016. It impacted earnings, but it's non-cash. Second, the extension of the foreclosure moratorium in the U.S. won't surprise anyone either. It was part of the government's response to the pandemic, and it went on for around 10 months longer than initially anticipated. While the CARES Act moratorium was finally lifted at the end of July, it was in place for the full second half of the year, and it cost us around $0.019 per share. The third part of the cost is in U.K. mortgage services. FY 2020 was the last year we received a sizable fixed fee contribution under the UKAR contract, with only $4 million coming through in FY 2021. That was a $45 million drop in revenues over FY 2020. This reduced EPS by $0.07 in FY 2021. We clearly knew this was coming, and we've been proactive in taking out more costs from this business to adjust. You also see on page 21 of the deck, we have upgraded our cost out target in U.K. mortgage services from a total of GBP 65 million to GBP 75 million, and we delivered GBP 8.4 million of these extra savings this year compared to our original plans. We are making good progress rightsizing the business, and we do expect to return to a modest profit in FY 2022. Moving to the green bars, the good news stories. All the cost-out programs across Computershare really helped our results. Across stages one, two, and three, the Equatex synergies and expanded cost out opportunity in mortgage services added $0.094 of earnings. We do expect our cost out programs to deliver a further $73 million of gross savings over the next two years, and we continue to look for more cost out opportunities. As you know, it's in our DNA. We will use these savings to help mitigate wage inflation pressures across the group, particularly in the U.S., wage inflation should run at around 3% next year, I can see the pressures across the economy. While we manage our costs very carefully at Computershare, that's around $38 million of additional headwind on a pre-tax basis next year that we have to offset to deliver growth. Moving to the next green column in the bridge, we did deliver profitable operational growth in FY 2021. We delivered over $0.09 per share of operational earnings growth excluding margin income, and the split was broadly $0.03 in the first half and $0.06 in the second. As I mentioned earlier, EBIT XMI was up 12.6% for the year. Adjusting for the increased annual leave provision, as we didn't force people to take time off during the pandemic, it would have been 14% growth. I think that was an important thing to do because I think we've retained our special culture at Computershare, despite all the challenges of remote working and lockdown. At the earnings level, we came in at down 7.3% for the year. That was 70 basis points ahead of the upgraded guidance we gave in February at down 8%, and we made just over $0.30 per share in the second half. Let's now talk about the businesses and how they performed starting on page five. We'll start with issuer services, which is the largest business in the group, and contributes 43% of total revenues. The business is performing well. Revenue was up 9% this year, and again, we saw the operational gearing come through with EBIT XMI up 26.3%, and margins expanded by 240 basis points to 24.4%. I'd have to say we're very pleased with these results. Revenue grew across all its business lines. Registry revenue was up 3.2%, excluding margin income, which is a good pickup from the 0.6% growth in the first half. The number of shareholder accounts we manage around the world increased slightly year on year, and we also increased client wins by a net 277, which is up 82 wins on FY 2020. This market share growth is good validation of our offer. Issuer paid fees grew by over 4%. These are the recurring revenues and now account for 69% of total revenues in the business. Holder paid fees are more transactional, but pleasingly, we did see some recovery in the second half here. They account for over 28% of the revenue, and margin income effectively halved in the business throughout FY 2021. Corporate actions was strong in FY 2021. We saw increased transactional volumes and high market activity levels across all our major regions. Excluding margin income, revenues and corporate actions increased by 35%. The M&A and Hong Kong IPO boom has been a positive for us. FY 2021 was also a story of capital raises, particularly in the U.K. It also reminds you that our key metric is the number of completed deals rather than announced ones. Announced transactions are a good lead indicator, but we do earn our revenues when the deal has been completed. Stakeholder Relationship Management, another of our event-based businesses, did well. Revenues XMI increased by 45% with a very strong first half as we completed a number of mutual fund proxy campaigns. As I've said before, though, these projects are lumpy and not recurring. We don't expect the same level of contribution from corporate actions due to less capital raise transactions or from SRM in FY 2022. Our new governance businesses, as we now call them, are building scale. We are successfully leveraging our core registry skills in the new complementary adjacencies, registered agent, and entity management. Our key metric of units or entities registered in the state under management, has grown 12% during the year through underlying resilience of the book and new client wins. These are high-quality businesses with room for sustained growth in large addressable markets. They also provide recurring subscription-style revenues and don't have any margin income exposure. I'm pleased with our progress in governance services and our ability to provide an expanded suite of services and a combined offer, and it's a clear competitive strength. Moving on to employee share plans. It also delivered a robust result. It more than doubled earnings excluding margin income in the second half compared to the PCP. Recurring fee revenues increased by 4%, excluding margin income. EBIT XMI was up 68%, and we delivered 790 basis points of margin expansion on the same basis. What's really driving that growth? As you know, we are implementing our market-leading platform, EquatePlus, across Europe and Australia, with over 3 million participants now live on the platform. This is helping us win market share. New client wins were up 7%. Transactional revenues also recovered as equity markets rallied. You will remember the fees were down 7.4% at the halfway stage and have finished the year up 16%, and they're now above pre-pandemic levels. That's been a big recovery driver. The structural rise of equity-based remuneration is also clear to see here. Units under administration are up 13%, and more companies are issuing equity deeper into their organizations to attract, retain, and reward employees. Moving on to business services. It delivered a disappointing result, these are clearly not peak earnings for the group. Revenue was down 15% and EBIT XMI fell by 34%. There are really three parts to this. Firstly, the Canadian corporate trust business performed consistently, which is a decent result given the high PCP. Bankruptcy reported strong revenue growth up 37%, although it was first half driven, and class actions declined by 31%. There are a couple of points to make here. First, the economic stimulus packages have effectively delayed the bankruptcies we expected to see when the year began, and you can see that in the public filings. There's been very little activity over the last six months. We do expect volumes to recover over time, but the outlook for FY 2022 is slightly subdued. Same with class actions. There has been very little activity through the courts, and while the structural growth trends are intact at around 6% volume growth PA in cases, again, the outlook for FY 2022 is a little subdued. Let's move to mortgage services. It's been a doozy of a year. There have been lots of challenges to manage. With the pandemic-related restrictions in the U.S. extending through FY 2021 and a prolonged period of record low rates driving elevated levels of runoff, the results aren't all bad. EBIT XMI margin, including the increased amortization, stayed positive. Total UPBs down 6% to $112 billion. With this, the value of loans we sub-serviced increased by 16%. The mix is improving also. Performing sub-servicing UPB grew by 28%, and we now sub-service over 290,000 loans. Capital light revenues increased by 17% in a year, partly as we're able to sell MSRs on a retained basis, converting owned MSR into sub-servicing business. This helped drive the mix in the portfolio I've just talked about. We also expanded our recapture capability. This is our defense to losing loan servicing from refi. We have retained the servicing on over $250 million of loans that would have been serviced somewhere else. Having said all that, we had just over $700 million of capital employed in this business at the end of June. This reflected a delayed MSR transaction which completed in the first week of July and a temporary peak in advancing on behalf of a sub-servicing client. Adjusting for this, the invested capital would have been flat over the year. We're now very focused on the pathway to better. What is this? Now, we can reduce the capital employed through ongoing MSR sales, recycling capital, and creating new capital light sub-servicing businesses. We have a strong pipeline of new fulfillment business, and we're in the process of implementing these contracts. Whilst the moratorium on foreclosures has come to an end, there are still a range of relief measures put in place by the CFPB, which will remain through to the end of the calendar year. Once these finish, we do expect to be able to add high margin non-performance and servicing work together with its associated ancillary fees to help improve the bottom line. That will start to come through in the second half, but clearly we've got a lot of work to do here. Putting it all together, our largest businesses performed very well. The more cyclical events businesses were a mixed bag, ups and downs. Margin income was frustrating. U.S. mortgage services needs to improve, and we've added a whole new long-term growth engine in the U.S., which is Corporate Trust. Let's move to page six and talk about our outlook for FY 2022. For FY 2022, our initial guidance is to deliver around 2% growth in management EPS. There are several moving parts in this, so I'll step you through it. The guidance includes CPU legacy. That's Computershare before the acquisition and without the rights issue. Let me highlight an important number here that may be missed in all the excitement of an improved margin income outlook. For the legacy business, we do expect management XMI to improve over 3% on the PCP. Second, we show the contribution from CCT for the eight months we expect to own it for the year. Finally, the dilutive impact of the rights issue. To help you, we also put in a bridge for the guidance, which is on page seven. Starting on the left, we have FY 2021 management EPS translated at FY 2020 FX rates of $5,203. There's the FX adjusted equivalent of what we're reporting today, which is $52.46. That's in constant currency. With wage inflation that I've called out, cost out programs, and some underlying business growth. The guidance for the legacy business would have been $0.547 per share. This would be a rise of 4.2% compared to the adjusted PCP. That's underlying organic growth. Moving along the chart, the Corporate Trust acquisition is expected to close in October or November, and we expect CTS to add over $0.04 of earnings in FY 2022. We have to adjust for the rights issue. We assume the rights issue took place in full on the 1 July. Pre the rights issue, the weighted number of shares on issue in FY 2021 was around 540 million. In FY 2022, it's over 604 million. Using the higher share count dilutes EPS by $0.056. Taking all this into account, we expect around $0.534 of EPS in FY 2022, which is around 2% growth on last year. The other guidance assumption to call out is on margin income. I'll do a little bit of the sum of the parts breakdown here. We expect for Computershare on a standalone basis, MI to be the same in FY 2022 as it was last year at around the $107 million. This is better than the initial guidance we gave at $80 million for FY 2022, and Nick will talk you through how we achieved the uplift. We assume balances of $17 billion, and as usual, we base our yield assumptions on the three-month swap curves as they are today. We don't speculate on the rates. You'll also remember that CCT has balances too, $60 billion of them. Around $9 billion is directly exposed to interest rates, with the majority of the others in money market funds, where fees are fixed, and we don't classify them as margin income. We expect CCT to contribute additional margin income of around $38 million. This gives us $145 million of margin income in total. Balances for the group should average between $55 billion-$60 billion. Our view is that margin income will be split broadly $60 million in the first half and $85 million in the second half, and this reflects our assumption around the timing of the closing of the CCT acquisition. I'll now pass over to Nick for further details on the financial results. Thank you, Stuart. Good morning, everyone. Let me start with our financial results this year, which are on slide 19 of the deck. As you can see, group revenue ex margin income was up 3.6%. Adjusting for M&A and the UKAR fixed fee, organic operating revenue growth was 4.6%. Increased contributions from issuer services and employee share plans are the key drivers here. Reflecting the fall in interest rates, total revenue for the group fell 0.8% over the prior corresponding period. There's more detail on revenue on slides 27-29, including revenue excluding margin income across each business stream. EBIT for the year fell 11.5% to $440.7 million. In large part, this decline is attributable to the $95.1 million reduction in margin income, whilst amortization expense increased by $35.8 million. This reflects both the change in amortization period announced last year and an unwinding of a couple of excess strip trades mid-year. We assume an eight-year amortization period for performing loans going forward. Therefore, expect amortization expense at a similar level in FY 2022. As Stuart has already said, excluding margin income, EBIT increased 12.6% to $336.4 million. Adjusting for the increase in our annual leave provision, EBIT excluding margin income was up 14%. The EBIT ex margin income margin was up 130 basis points to 15.6%, again, largely due to the improved contributions of Issuer Services and employee share plans. As anticipated, interest expense was lower, reflecting the lower rate environment. Our income tax expense was lower too, at $105.4 million. The effective tax rate for the year was 27.2%, slightly better than we anticipated. This was largely due to a change in tax rates in the U.K. and the related revaluation of the net deferred tax asset position. We also expect a slightly lower ETR range in FY 2022 of 26%-28%. This reflects a slight change in expected profit mix and a lower expected U.S. BEAT expense. Management NPAT was down 7.4% to $281.4 million. As you've already heard, management EPS was down too, 7.3% to $0.5203 per share. Our statutory results are set out on slides 25 and 26. Statutory NPAT was $189 million, with the difference attributable to the amortization of non-MSR acquired intangible assets of $42.7 million. Acquisition related expenses of $24.5 million, which was largely attributable to the ongoing Equatex integration, and $27.5 million associated with our cost out programs, the main contributor being the U.K. mortgage services restructuring. I'll now jump back to slide eight and talk about margin income. The margin income result was broadly in line with expectations, with H2 2021 being $51.5 million at actual rates. Notwithstanding this result, average balances were actually around $2.5 billion better than the first half and much greater than we expected, meaning our overall yield on client balances declined further from the first half to around 51 basis points. This increase in balances is largely due to a growth in SPAC funds, as we have managed to penetrate that market segment in the second half of the year. To date, however, these balances have not attracted any margin income due to the fee arrangements in place for these types of transactions. Adjusting for these SPAC funds, our exit balances at the end of FY 2021 are in line with our FY 2022 expectation of around $17 billion. Looking to FY 2022, however, we're actually upgrading our margin income expectations to be around $107 million, and that's $145 million when we include the contribution from CCT. A reminder, these numbers are in constant currency. What's behind this improved margin net income outlook for our core business? Firstly, we've been able to secure an extension of our deposit protection service contract in the U.K. through to 2026. This means that we can reinvest funds that had previously been expected to revert to short-dated rates in FY 2022, and we can add further duration to term funds that were previously anticipated to end in FY 2023. Moreover, and importantly, this new contract provides more flexibility in terms of duration and liquidity requirements, whilst U.K. medium-term rates have also improved significantly since we did our half-year outlook. Altogether, the DPS represents around two-thirds of the margin income uplift that we're now anticipating in FY 2022. The remainder of the uplift is driven from an improvement in the U.S. dollar interest rate outlook, where medium-term swap rates have picked up since the half year. We've been able to take advantage of this and add duration to the book to secure a higher return in FY 2022. Together, this drives a higher yield expectation in FY 2022 on the legacy book to be around 63 basis points on balances of $17 billion. Looking at the CCT book, we expect that to come on board in October, November time and deliver around $38 million in margin income during the year at a yield of around 29 basis points. To be clear, we're not assuming any upside in FY 2022 from extended duration, recapture of money market funds, or yield enhancement strategies at this point. There's more detail on our balances on slides 71-75. I'd like to talk about slide 20. Here we show the bridge in operating costs between FY 2020 and FY 2021. Importantly, we've drawn out the reduction in underlying operating expense. You can see how the cost out programs are having an impact. These programs realized $82.6 million of benefit in FY 2021. $32.4 million of this came from the finalization of the asset migration program in U.K. mortgage services. All the IT costs associated with the transition has come out, and that's what this saving represents. The remaining $52.2 million comes from our other cost out programs, the largest being the restructuring of our U.K. mortgage services business. Overall, our adjusting operating cost base was $1.181 billion, a reduction of 6.5%. Where did these savings go? First of all, there's $8 million of M&A related additional OpEx, a little bit of Corporate Creations, and a full year of Verbatim. There's the investment in growth. We've added capacity to meet demand in corporate actions and in building out our corporate secretarial capability. This added $33 million of cost. Finally, there's some one-off costs of $9.6 million, a regulatory levy and a particular bad debt. These won't repeat in FY 2022. You'll also note the cost of sales increased from $371.8 million to $410.4 million. This is driven by a sales mix and underpins that higher revenue excluding margin income that we discussed earlier. Total operating expense is detailed on slide 35. You can see the usual breakdown there. On slide 21, we show the impact of all our cost out initiatives. You'll see we're increasing our cost out savings target by $30 million relative to our prior estimate. This reflects, firstly, a $10 million increase in the synergies we anticipate generating from taking the EquatePlus platform around the world. Second, an increase in our expected benefit realization for the U.K. mortgage services cost out program of around $10 million, taking the overall saving here to $75 million, excluding the IT costs associated with the platform migration. Third, an increase in our stage three cost out target of $10 million. This represents the additional savings from the transformation of our finance and people functions, together with some reductions in office space. At the same time, we've increased the expected cost to achieve by $15 million. The total gross multi-year benefit target for which we extend the delivery period out to FY 2024 now from these programs is now estimated to be $276 million. I'll finish with some comments on our balance sheet and cash flow on slide 22 before handing back to Stuart. In the period, we generated $375.3 million of net operating cash flow, representing an EBITDA to cash conversion rate of around 60% at actual rates. Free cash flow was $260 million. CapEx was down for the year at $16.3 million due to lower IT-related spend. Net cash flow was $40.8 million after spending $21.8 million on acquisitions, $172.8 million on dividends, and around $123.6 million on MSRs. Our capital recycling transaction was slightly delayed at year-end and completed in the first week of July. Adjusting for that, net investment in MSR for the year was around $100 million and therefore largely maintenance in line with the amortization expense for the year. We do expect that net MSR investment will be a fair bit lower in FY 2022. All told, net debt has reduced materially over the last 12 months. This reflects the receipts of the rights issue ahead of completion of the CCT acquisition later this calendar year. As a result, our net debt to EBITDA ratio fell to 1.07x. Looking ahead, the net debt to EBITDA ratio will peak post the completion of the CCT acquisition before starting to organically repair. We anticipate it being around the top of our target range at the end of FY 2022. I'll now hand back to Stuart. Thank you, Nick. Finally on to conclusions. Look, FY 2021 was undoubtedly one of the toughest years of my and many other people's careers. Managing global businesses remotely, the numerous false starts to the pandemic recovery, having record low interest rates cloud our performance, not to mention making a leapfrog acquisition with all the due diligence you'd expect of us, as well as completing a major and complex capital raise. It was pretty tough. Everyone did their job, and our teams continued to deliver exceptional client outcomes. I want to express my thanks to all my colleagues for their outstanding contribution and dedication, not to mention their resilience. Looking forward, we enter FY 2022 with renewed vigor and confidence. We'll keep our heads down and keep true to the strategy to build stronger, more efficient businesses with more leverage to structural growth trends. We will focus on executing well, maintaining cost disciplines, and investing strong free cash flow in growth, new technology, and balance this with a conservative capital structure and returns for shareholders. We do expect a return to positive earnings growth in FY 2022. We have high-quality businesses with scale and strong recurring revenues in the group. Now event activity will fluctuate and interest rates will be what they are, but we have significantly increased our optionality for when rates do start to rise. I'd like to thank you all for your time, and I'll now hand back to the operator to open the line for questions. Thank you and welcome to the Q&A session. To ask a question, please press star one on your telephone keypad and wait for your name to be announced. The first question comes from Nigel Pittaway from Citigroup. Please go ahead, Nigel. Good morning, Stuart and Nick. First of all, just a question on the margin income guidance and sort of the renewal of the DPS contract. I mean, previously you sort of highlighted some concerns that banks weren't sort of willing to take five-year money and the rates you were getting on five-year money were somewhat subdued. Did that change over sort of the last few weeks and enabling you to sort of get a higher return and therefore sort of obviously come out with that $107 million guidance on the legacy book? Nigel, just quite importantly on the DPS contract. As you may be aware, in the last year of the contract, the investments have all got to be put short-dated and be fairly liquid. That was due up March 2022. We had a little bit of a DPS cliff. During the last six months, we've been in discussions with the British government. They've renewed that term for five years. That's meant that we've not had to come out of some of the term, which enjoying quite higher rates. They've also changed and relaxed some of the rules around what we can do as far as these investments are concerned and some of the durations and the limits. That's helped. As Nick said, it's probably around about 2/3 of the uplift. The other third really is some of the changes of appetites for certain banks for funds, both in the U.K. and also in the U.S. I mean, the U.K. rates have sort of improved a little bit for longer-term money. There was also some opportunities that the treasury team identified in the U.S. to be able to do that as well. That really sort of explains through why we get that uplift in margin income in FY 2022. It's a range of factors. Yeah. There is certainly some financial institutions certainly do have appetites and have been offering attractive rates Okay, thanks for that. Second question is just on servicing related fees in mortgage servicing. They seem to sort of leap in the second half and been the highest they've been by a key margin. Can you just make some comments on what's driving that, please? Nick, do you have insights into that? That just reflects some other income associated with some MSR transactions that were completed in the second half. We mentioned some unwinding of an excess strip, and as we've sold some MSR on a retained basis in the second half, that drove a little bit of a gain, Nigel. That's largely what's behind it. I wouldn't expect that to repeat at that level in 2022. The first half level is probably more an indication of a go-forward position. Would that be fair to say? The first- On that line. Just a little bit of steady growth. Yeah. Yeah. Okay. Maybe just finally, obviously you sort of mentioned the big increase in recovery in transactions in plans in the second half. It does look as if sort of that lift in revenue pretty much dropped through straight down onto the EBITDA line. Is that a sort of fair way to describe it? You're basically getting those transaction revenues with very little cost attached to them, and they just drop straight through? Yeah, that's right. We have to maintain the underlying infrastructure regardless of the number of transactions that actually come into the marketplace, as far as people exercising their stock, et cetera. We are able to get that extra increase to the bottom line in that business. Yeah. As I said, it was a big driver of the recovery in that business. The increased vesting and exercises certainly through the second half. Okay, thank you. Thank you, Nigel. The next question comes from Simon Fitzgerald from Evans and Partners. Please go ahead. Oh, hi there. Nick, first question for you. Can you just give us a little bit of clarity in terms of your expectations of depreciation and amortization charges in FY 2022? I'm comparing that to the $182.1 that was booked in 2021. Yeah. I expect amortization to be fairly flat in- Yep. In 2022. Depreciation as well? Yeah. It's not materially different to what it is in 2021. Okay, that's fair. Also, I note that just in one of the back pages in terms of the reconciliation with the statutory profits, there's $29 million there of other costs. 2022 of that relate to the U.K. cost out program, and that's consistent with the treatment that you've done in the past. I guess I'm just trying to get a bit of a handle in terms of what some of those numbers might look like in FY 2022, just given that we've got a lot going on and there's the big transaction costs associated with the CTS business. Yeah. Sorry, let me just clarify a comment I just made in terms of amortization. Sure. depreciation. They'll be fairly, I expect it to be broadly in line with 2021, with the exception of there will be some additional depreciation expense associated with CCT. Just to sort of call that out. In terms of the statutory adjustments or management adjustments in 2022, they will be Obviously, we've got the cost to achieve that we call out on slide 20. That'll be a large part of that. You will have the costs associated with the Wells Fargo CCT acquisition. Yep. They'll broadly be in line with what we previously disclosed. Okay. In addition to what we paid. Are they likely to come through in one year, in the FY 2022 year? It will largely be in the second half. Yep. Okay. It will largely be second half. You get a full year in 2023. Okay, good. Just one final question on the mortgage services business. I just want to get a bit more of a handle in terms of how much of that link with the level of interest rates is important to see that get back to the same sort of run rate that we've previously seen in the past. Maybe you can sort of help me with that in terms of. Margin income was one of the biggest declines that saw that business get to a loss. What sort of expectations or interest rate levels do you need to see to see that return? Yeah, look, it's a good question, Simon. Well, we always- Sorry, Nick. You're absolutely right insomuch as that particular business has very little opportunity to term out the monies that we receive. Yeah. Yeah. It's hard to get yield enhancement on that. When there is a interest rate decline, it is one of the businesses that are impacted quickly and by the most. Interest rates also have a bearing on mortgage rates. As we know, as interest rates came down, mortgage rates came down, that kind of sparked the sort of the refi activity. I think we've always said in mortgage services, a sort of gently rising rate environment is the optimal environment for a mortgage services business because it provides a little bit of balance. I think what we will see is mortgage rates start gently creeping up as the longer end of the curve, so longer-term money becomes a little bit more expensive. That will slow down the refi. I think it will take a while to get back to the margin income that we got in that business, or we enjoyed in that business through FY 2018, FY 2019. Yeah. Okay. All right. That's helpful. Thank you very much. Thank you, Simon. The next question comes from Matt Dunger from BofA. Please go ahead. Thank you very much, gentlemen, for taking my questions. Just if I could touch on the guidance. You've talked to the typical seasonal earnings skew. Could you confirm that this is around 40% or is it 42% in the first half? Also whether it's for the total group or this seasonal skew is for Computershare legacy before you look at the margin income, which comes in largely in the second half for CCT? Yeah. I think you saw clearly in FY 2021 quite a large skew between first half and second half. Yeah. We always said that we expected the better second half performance and delivered the $0.30. There has always been a little bit of a natural first half, second half skew on the legacy business. Clearly this year, that will also be the case because we don't expect to close the CCT transaction until November. Certainly its margin income, et cetera, et cetera, will all be pushed into the second half as well. It'll be more prevalent this year, even more than it was in FY 2021. Thanks, Stuart. On the tax rate guidance, 26%-28%, are there any one-offs in FY 2022, and is this in line with your long-run expectation? Look, there's no one-offs. Next, you want to take it? Yeah, sure. Let's do it. There's no one-offs in 2022 at the moment. As I called out in the commentary, we had a little bit of a benefit in 2021 from the revaluation of the net deferred tax asset position due to changes in U.K. rates. The reason why we're focused on or forecasting a slightly lower ETR in 2022 is largely because of the profit mix, lower profits in the U.S., in part because of the cost to take on the Wells Fargo acquisition. As a result, we anticipate having a lower U.S. B tax expense in 2022 as well. Moving forward, it really depends on just the outlook for corporate tax rates around the world. There's a lot of speculation at the moment that governments may be forced to put up rates to pay for COVID-related support. We've already seen that happen in the U.K., with them announcing rates will go up there from 2023 onwards. I do think that it's likely that there will be an increase in rates over the medium term. Outside of the U.K., we haven't got anything that we can point to definitively. Until that happens, my expectation is that our ETR will be similar to what it has been in FY 2021, perhaps will be slightly lower in 2022. 2021 is a good medium-term barometer until any rate changes occur. Thanks very much, Nick. Just a final one, if I could please. On the CCT contribution, you're flagging $1.8 million in FY 2022 from management EBIT XMI for eight months. You've talked about $11 million of cost synergies in year one. Are you able to talk to us about why there's not more earnings contribution coming through from CCT for eight months ownership? Yeah. Look, I think the CCT business ex margin income, as it stands just now, is not profitable. It's very much like the Canadian corporate trust business that we acquired 20 years ago. There was a strong reliance on margin income to drive the results. Over time, we've been able to change that fee structure and drive more of the earnings coming from fees rather than relying on margin income. Look, we do have some synergies coming through. Obviously, that was an annualized rate. We're only going to have it for half of the year or so. That's really why that number is fairly low. A lot of the integration and synergy work will commence in the second half of the year. Not all of these synergies will be delivered in the second half of FY 2022. More of them will be towards the first half of 2023. That's really the explanation why that number is low. Great. Thank you very much, Stuart. See you. Thank you, Matt. The next question comes from Andy Chuck from Macquarie. Please go ahead, Andy. Hi, Stuart. Hi, Nick. Thanks for taking my questions. The first question is on amortization, which picked up quite significantly in the second half, around $10 million. You called out down winding of excess strip sales in the U.S. mortgage servicing business. This is kind of the opposite of the capital recycling strategy that Computershare normally pursues. Can you provide some color around these transactions and whether we should expect more going forward? No. Look, I wouldn't expect any more, Andy. Sorry, Stuart. Absolutely. Andy, I wouldn't expect any more. These were sort of one-offs. Really, with these transactions, they were opportunistic. We had an excess strip investor looking to exit the transaction. It made sense for us to retain the assets on our portfolio. Essentially, it goes from having a partial interest in the MSR to having the full interest in the MSR. You're essentially buying back the excess strip interest, which increases your ownership stake and increases your go-forward amortization. At the same time, you do get the greater revenue associated with owning the full MSR. That's what the transaction is. As I said, there were two of them this year. They were one-off. I wouldn't anticipate any more of these happening moving forward. Certainly not the impact that we've seen in this last 12 months. Fantastic. Just to follow on that, you made a comment to Simon before that 2022 amortization should be in FY 2021. Just to clarify, do you mean second half 2021 as the run rate or actually the FY 2021 number? Sorry, yeah. 2022 second half. Fantastic. The second question from me is on the U.S. mortgage servicing business. The business has pursued a capitalized strategy in FY 2021. The UPB has declined 5.7%. I appreciate that the refinancing rates are elevated given the low rate environment, but the overall market continues to grow. Maybe you can please provide an update on the capital light strategy, and if you could also comment on when we should expect UPB to return to growth, please. Look, the first thing to note on the run down in the book is that it's largely on the non-performing portfolio. What's happened is the non-performing portfolio has run off with rates being low. The loans that are at the better end of that portfolio have been able to refinance. Because of the moratorium, we've not been able to replace those loans. It's largely the non-performing book where we've seen a runoff. The capital light strategy as a whole, we're focused on implementing already, and the MSR trades that we did towards the back end of FY 2021 were the sale of MSRs on a retained basis. When you see our subservicing portfolio go up, you've seen our own portfolio go down. That really reflects the capital light strategy in action. We're converting owned MSR into subservice MSR. The piece of the strategy you're talking about is having a permanent capital partner in place, a permanent capital vehicle in place. We're continuing to work diligently on that. It's taking us a little bit longer, quite frankly, because the funds that we're working with have encountered just some regulatory complexities that we just needed to work through with them as we put this structure in place. We're working through those and we anticipate making a lot of progress in this half. Great. Thanks for that. That's all for me. Thank you, Andy. The next question comes from Ed Henning. Please go ahead. Thanks for taking my questions, and sorry if I go over other questions as my phone dropped out, so I might have missed something. Just further on the U.S. mortgage servicing business and talking about your partner you're working with and you're hoping to get it in the second half or, sorry, in the next half, I would imagine. Can you just run through what is going to be the appetite for this partner? How fast can they run with you getting subservicing work for them? Part of what we're working through is making sure that they've got the capital to deploy immediately so that we can get it going immediately, Ed, and we're working on that basis. We're actively trying to build our MSR pipeline in the near term so that once the partnership is in place, we can hit the button and start to get into transactions almost straight away. What I'm trying to figure out, though, is how much are we talking potentially? Is it just dipping the toe in the water initially, or can you see your growth going up substantially on your subservices? The best way, we're targeting growth in our servicing portfolio over FY 2022. We're anticipating a return to growth in the portfolio in 2022, which will be fueled not just by the special servicing work that we've already talked about, but sub servicing coming out of our capital light partnership in the second half. Once you get the partner on board, is this going to see a material step up in the growth profile is kind of what I am trying to get at? Now look, I think we have to. I think, you know. See how we go with the partner, right? There's been a lot of work. There's a lot of complexity. They're a fund, there's challenges on certain things that they can own and not own, and we'll still have to have a little bit of equity in a vehicle, but not as much as we would ever have on some of the previous transactions that we've done. I think what we will do is we'll use this year, we'll implement it, obviously, with our co-issue program with CMC. We have access to the volume coming through. Then we'll slowly ramp that up. Now that we'll have that structure, we'll also be able to speak with other finance partners. Once you get the first one over the line and the necessary approvals, it'll be easier to get the other ones. Once we can do that's when you'll see a step change in growth, Ed. Okay. No, that's helpful Fairly gradual. Yeah. Okay. No, that's helpful. Going back to the previous question on mortgage servicing again, you talked about the returns and the business, and obviously rates have had an impact on that. If we just hold rates where they are now, which hopefully they stay that way for you guys, what kind of return do you think you can get in that business if I look at slide 52, where currently it's negative on an EBIT basis? Yeah. Obviously, margin income was part of that. 12%-14% return on invested capital. Yeah. Yeah. If rates stay exactly where they are, that creates a hole. Net-net, you're then talking high single-digit numbers, right? Yeah. The other challenge that we've got in that business to make up if rates stay where they are will be the cost per loan to serve and continuing to tackle efficiencies and deployment of digital technologies to reduce the cost to serve, to make up some of the gap, given we'll not have the margin income that we had in the business before until rates do change. Okay. That's what I was saying. There's a bit of work to be done. Yeah. Yeah. No, that makes sense. Just one last one, just circling back to employee share plans. Obviously, very strong period of transactional revenue bouncing back. I might have missed the comment before, but did you talk about growth going into 2022? Are you anticipating growth to continue for employee share plans? That transactional revenue to maintain at that high level? Look, we are. Look, I think that obviously when you look at transactional revenue up in the second half ending at 16%, that was on the PCP. You have to remember that late March, April, May in FY 2020, it was fairly subdued. Yeah. I would say that we are anticipating further growth in employee share plans in FY 2022, which is part of the plan. It'll actually be nice to see a little bit of a normalized year of it. Yeah. It should remain at the levels or slightly above what we see just in 2022. Yeah. Yeah. No worries. That's great. Thank you very much. Thank you, Ed. The next question comes from Ashley Dalziel from Goldman Sachs. Please go ahead. Hi there, guys. Thanks for taking my question. Just 1 on your expense profile into next year. Just picking up some of the analysis on slide 20, where in the current year or FY 2021, it looks as though your underlying expense inflation was essentially zero. Into 2022, you're guiding to underlying expense inflation as circa three. I appreciate there's definitely building wage inflation pressures in North America, but it does feel like a bit of an unnatural profile, I suppose, for a business like this. Could you help us unpack that a little? Were there any kind of mix or one-off elements that I might be missing there? Yeah. Look, you're right. Obviously, we always see in Computershare some sort of gradual and slow wage inflation pressure. I think we're seeing quite exceptional circumstances at the moment in terms of salary and wage pressure. A lot of that is really related to some of the more junior positions with Computershare, within the call center, transaction processing, et cetera, where you'd be paying $17 an hour for an agent in Louisville, then all of a sudden they're now working at home in a home environment. They then have an opportunity to take jobs with New York firms or Chicago firms all working from home and take New York and Chicago salaries at $23, $25 an hour. Look, I think over time, that will normalize back out. At the moment, there's some fairly exceptional circumstances driving some of that attrition in the organization that we've had to respond to. That's why you generally see well north of $30 million pre-tax of headwind on these, which is probably higher than you've ever seen in Computershare as we just have to react to the market. Yep. It's really what's driving it. Okay, perfect. Thanks. That's all I had. Thank you, Ashley Dalziel. Next question comes from Kieren Chidgey from Jarden. Please go ahead. Morning, guys. Just had a couple of questions for you. On the CTS margin income outlook you provided, which I think is sort of high, $30 million for the eight-month contribution in 2022. Nick, are you assuming there is any sort of reallocation of those money market funds you had highlighted that sort of opportunity during that period? Is that sort of expected to follow more in the 2023 year? Yeah. That's what we call recapture, Kieren, and we're not forecasting any of that recapture of money market funds balances into our FY 2022 earnings guidance. For the moment, we're anticipating that as a 2023 opportunity. Okay. I'm not sure if you've had any further sort of discussions or progress in working through that opportunity since announcing the deal, but has your confidence around that item changed at all over recent months? Look, we've spent a lot of time working on it. We're spending a lot of time just working on migrating all of the balances. It's not just the money market funds that we've got to focus on. It's all of the deposit book that we or the exposed deposit book that we've got to transfer out as well. We're very focused on it. We've got a team mobilized and working on it, and we're focused on doing it as fast as we possibly can. I think we always sort of said it would be 6 -12 months to get it done. There's a chance that we could get it done at the six months rate, but we're just being a little bit probably conservative in our outlook here and not including anything in 2022 at this stage. Thanks. A second question on U.K. mortgage services. We've seen quite a bit of sort of cost out delivered there, yet the EBITDA loss is pretty static year-on-year, and you've expanded sort of the cost out program there again, I think by another $10 million. Is that just now keeping pace with the runoff of the book? Is there enough happening from a revenue point of view that that business can move back into the black, or are you looking at alternative options for that business, including exiting it? Yeah. Look, I think in U.K. mortgage services, the U.K. mortgage market has been at fairly decent recovery, Kieren. The volumes are up. Our sort of lender-in-a-box model has seen increased number of levels. We've always got a bit of a job on our hands keeping up with runoff because we've got the large UKAR closed book. Yeah. The business will return to a profitable state in FY 2022, and then we'll continue going on. There's been a little bit of market subdued. Some of the large sort of book transfers have been on hold. Some of the sort of work that we've won in the past in Ireland and other bits and pieces, we haven't seen as many of these transactions over the last sort of period. It's been a little bit quiet. We always review the portfolio of companies at Computershare to see whether there's opportunities there. A lot of the hard yards has been done on that particular business. We just look forward to it making a better contribution and then the market sort of improving a little bit. Well, thanks. Just a final question. There's been changes in ownership of some of your peers globally are still due to take place in the registry market. Are you sort of expecting any opportunity off the back of that or sort of any change to pricing dynamics occurring in those markets? Yeah. Look, we haven't seen any that's very specifically in the issuer services space. We know that Boardroom recently acquired by one of the Temasek funds. Obviously Equiniti in the U.K. with Siris Capital. Also they're trying to do the same thing with the AST in the U.S., although I suspect the Department of Justice will have a look at that one because of Equiniti's ownership of the former Wells Fargo business. I think what it does do is it has created a bit of uncertainty especially with the Equiniti were supposed to take their U.K. platform into the U.S. That never happened. The new owners are saying they're going to take six months to have a look at it and make a determination of what they're going to do, which creates further delay and further uncertainty for some of these clients. They know that they're probably going to have to do a system conversion, therefore, they're more than happy to come out and have a look. Look, I'm not sure what it will do on the pricing aspect. It's too early to say. I see a change and churn there, which creates uncertainty. When we've got a very strong market position there, I see it as a net positive. All right. Thank you. Thanks. Thank you, Kieren. We have no further questions at this time. I'll now hand back over to Stuart for closing remarks. Yeah. Well, thank you very much. This was an unusual results presentation from us. We had Nick in New York, Michael in Sydney, and I'm sitting here in London. First time when at least two of us have not been in the same room. I hope that it went well from your perspective. I just want to say thanks again for your time. Much appreciated. Thanks again for your interest and support of Computershare, and I look forward to spending more time with you all in the coming days. Appreciate it. Thank you. That concludes the Computershare FY 2021 results presentation. Thank you once again for joining us today. You may all disconnect.