COMPUTERSHARE ANNUAL REPORT 2008

(c) OtherThe Group is subject to regulatory capital requirements administered by certain US and Canadian financial institutions and bankingcommissions. These requirements pertain to the trust company charter granted by these authorities. The Group is also subject toregulatory capital requirements administered by the Financial Services Authority in the UK and by Regulatory Authority for FinancialInstitutions of Germany in Germany. These requirements pertain to the trust company charter granted by the Financial ServicesAuthority in the UK. In Germany, these requirements need to be met for underlying businesses. Failure to meet minimum capitalrequirements, or other ongoing regulatory requirements, can initiate action by the regulators that, if undertaken, could revokeor suspend the Group’s ability to provide trust services to customers in these markets. At all relevant times the Computersharesubsidiaries have met all minimum capital requirements. In addition to the capital requirements, a trust company must depositeligible securities with a custodian. The Group has deposited a certificate of deposit with the Group’s custodian in the UK in order tosatisfy this requirement.Computershare Limited (Australia) has issued a letter of warrant to Computershare Custodial Services Ltd. This obligatesComputershare Limited (Australia) to maintain combined tier one capital of at least Rand 455,000,000.Potential withholding and other tax liabilities arising from distribution of all retained distributable earnings of all foreignincorporated subsidiaries is US$9,744,237 (30 June 2007: US$5,574,403). No provision is made for withholding tax onunremitted earnings of applicable foreign incorporated subsidiaries as there is currently no intention to remit these earningsto the parent entity.In consideration of the Australian Securities and Investments Commission agreeing to allow AU$5,000,000 to form part of thenet tangible assets of Computershare Clearing Pty Ltd so that it can meet certain financial requirements under the conditions ofits Australian Financial Services Licence, Computershare Limited has agreed to make, at the request of Computershare ClearingPty Ltd, a AU$5,000,000 loan to it. Computershare Limited has agreed to subordinate its loan to any other unsecured creditors ofComputershare Clearing Pty Ltd. The loan was made pursuant to a deed of subordination dated 7 January 2004.In consideration of the Australian Securities and Investments Commission agreeing to allow AU$5,000,000 to form part of the nettangible assets of Computershare Share Plans Pty Ltd so that it can meet certain financial requirements under the conditions of itsAustralian Financial Services Licence, Computershare Limited has agreed to make, at the request of Computershare Share PlansPty Ltd, a AU$5,000,000 loan to it. Computershare Limited has agreed to subordinate its loan to any other unsecured creditors ofComputershare Share Plans Pty Ltd. The loan was made pursuant to a deed of subordination dated 5 July 2007.Computershare Limited (Australia), as the parent company, has undertaken to own, either directly or indirectly, all of the equityinterests and guarantee performance of the obligations of Computershare Investor Services LLC, Computershare Trust CompanyInc, Georgeson Shareholder Communications Inc, Computershare Trust Company of Canada and Computershare InvestorServices Inc with respect to any financial accommodation related to transactional services provided by Harris Trust and SavingsBank, Chicago.02-13Overview14-36Governance37-88Financials38. CAPITAL EXPENDITURE COMMITMENTSConsolidatedParent entity2008 2007 2008 2007$000 $000 $000 $000Less than 1 year:Fit-out of premises 400 720 - -Purchase of equipment 1,023 - - -Other - 2,670 - -1,423 3,390 - -39. SEGMENT INFORMATIONThe consolidated entity operates predominantly in three geographic segments: Asia Pacific; Europe, Middle East & Africa (EMEA)and North America.Asia Pacific includes Australia, New Zealand, India and Hong Kong. The EMEA region comprises of operations in the UK, Ireland,Germany, South Africa and Russia. North America includes the US and Canada.In each region the consolidated entity operates in five business segments: Investor Services, Plan Services, Communication Services,Stakeholder Relationship Management Services and Technology Services.The Investor Services operations comprise the provision of share registry and related services. The Plan Services operationscomprise the provision and management of employee share and option plans. Communication Services operations comprise laserimaging, intelligent mailing, scanning and electronic delivery. Stakeholder Relationship Management Services Group comprisethe provision of investor analysis, investor communication and management information services to companies, including theiremployees, shareholders and other security industry participants. Technology Services include the provision of software specializingin share registry and financial services. Intersegment charges are at normal commercial rates.All corporate entities have been included as unallocated in the geographic and business segments. Corporate entities’ main purposeis to hold intercompany investments and conduct financing activities. Previously corporate entities were reflected in the geographicregion of incorporation and corporate business segments, accordingly the 30 June 2007 comparatives have been updated. Themost significant changes to the 30 June 2007 geographic segment profit before income tax were corporate entity transactionsrelating to transfer pricing revenue, profit on sale of Analytics business and external interest expense now being included inunallocated. The most significant change to the 30 June 2007 business segment profit before income tax was that profit on sale ofAnalytics is now included in unallocated.Geographical segments are presented as the primary reporting segment of the Group, reflecting the manner in which the Grouphas been internally managed and financial information reported to the Board in the current financial year.89-92Reports93-96Further InformationPAGE 83