Servcorp Limited · ASX:SRV
Servcorp — H1 FY2012 Earnings Presentation
17 slides from Servcorp's earnings presentation, Feb 21, 2012
Slide 1: Servcorp Limited Analyst Presentation
Servcorp Limited Presented by: Analyst Presentation Six Months ended 31 December 2011 Alf Moufarrige, C.E.O. Marcus Moufarrige, C.O.O. Tuesday 21 February 2012 1
Slide 2: Operational Highlights – H1 FY 2012
Operational Highlights – H1 FY 2012 Total Floors Open Mature floor NPBT up 38% to $18.52M – in at 31 December 2011 = 119 line with guidance USA 21 Immature floor loss down 22% to $10.36M - in line with guidance Europe 9 NPBT of $8.16M, up from $0.12M Greater China 10 Operating cash flow up 72% t
Slide 3: Financial Results – H1 FY 2012: Profit & Loss Highlights
Financial Results – H1 FY 2012 Profit & Loss - Highlights H1 FY 2012 H1 FY 2011 Constant % $AUD 000’s $AUD 000’s Currency % Total revenue 99,381 89,360 11% 16% Mature floor net profit before tax 18,523 13,465 38% Immature floor loss (10,359) (13,342) (22%) Total net profit before tax 8,164 123 6,537
Slide 4: Financial Results – Cash flow Highlights
Financial Results – H1 FY 2012 Cash flow Highlights H1 FY 2012 H1 FY 2011 % $AUD 000’s $AUD 000’s Net operating cash flows 15,187 8,853 72% Payments for property, plant & equipment (6,723) (18,934) Dividends paid (4,922) (4,922) Other cash flow items 1,063 1,720 Increase / (decrease) in cash balance
Slide 5: Financial Results – Balance Sheet Highlights
Financial Results – H1 FY 2012 Balance Sheet - Highlights As at As at 31 December 2011 30 June 2011 % $AUD 000’s $AUD 000’s Cash balances 105,706 99,993 6% Cash balance (unencumbered) 96,996 91,270 Total Net Assets 198,460 192,612 3% Net Tangible Assets (per share) $1.87 $1.81 3% 2 4
Slide 6: Mature Business – H1 FY 2012
Mature Business – H1 FY 2012 Revenues and margins improved across most geographic segments This is despite the strength of the AUD throughout the period During the half the AUD increased by an average of: 11% against the USD 5% against the EUR 3% against the JPY Cost cutting and streamlining
Slide 7: Immature Business – H1 FY 2012
Immature Business – H1 FY 2012 Immature Floors as at Immature floor revenue continues to 31 December 2011 = 47 increase modestly each month USA 21 Management satisfied with the progress of the immature floor portfolio Europe 2 47 floors were immature at 31 December 2011 Greater China 4 Middle Eas
Slide 8: Global Expansion – Update
Global Expansion – Update Current strategy for FY 2012 is to: Slow the pace of expansion Consolidate operations in new and existing markets Original intention was to open no more than 15 floors in FY 2012 Now opening a total of 9 floors due to: Continued volatility in global markets Continuin
Slide 9: Global Expansion – Total Floor Expansion
Global Expansion – Update Total Floor Expansion 25 36 Months ending 30 June 2012 Floors opened in the 24 months to 30 June 2011 = 53 20 Floors to Open FY 2012 = 9 Total Floors = 62 Number of Floors 15 2 21 10 2 4 5 10 7 6 1 4 2 3 0 Australia & New Japan Southeast Asia Middle East Greater China Europ
Slide 10: Operating Summary by Region H1 FY 2012 – Australia, NZ, Japan
Operating Summary by Region H1 FY 2012 AUSTRALIA & NEW ZEALAND Mature floors Performance of Australia and New Zealand continues to be strong Immature floors One new floor opened in Brisbane Now 8 immature floors in the region JAPAN Mature floors Fukushima earthquake in March 2011 had a significa
Slide 11: Operating Summary by Region H1 FY 2012 – Greater China, Southeast Asia
Operating Summary by Region H1 FY 2012 GREATER CHINA Mature floors Growth continued throughout the half One floor closed in Hangzhou Immature floors Two floors were opened in Shanghai and Guangzhou Now 4 immature floors in Greater China SOUTHEAST ASIA Mature floors Southeast Asia performed stro
Slide 12: Operating Summary by Region H1 FY 2012 – Middle East
Operating Summary by Region H1 FY 2012 MIDDLE EAST Mature floors Middle Eastern region continues to perform strongly Performance of Dubai and Abu Dhabi continues to be solid Doha has seen a marked increase in profitability and margins A floor in Jeddah became mature during the half and is now ma
Slide 13: Operating Summary by Region H1 FY 2012 – Europe
Operating Summary by Region H1 FY 2012 EUROPE Mature floors Serviced Office market in Paris continues to be difficult Margins in both London and Brussels increased during the half One floor in London became mature in the half and is now making profits Immature floors Two floors in this region we
Slide 14: Operating Summary by Region H1 FY 2012 – USA
Operating Summary by Region H1 FY 2012 USA Immature floors Servcorp continues to gain sales traction in the USA Operating revenue continues to increase on a monthly basis There is risk that: The economy of the USA will not recover as quickly as anticipated; Aggressive competition will impact th
Slide 15: FY 2012 Outlook
FY 2012 Outlook Management continues to remain cautiously optimistic about the outlook for Servcorp Revenue and margins expected to hold at current level for the remainder of FY 2012 Management will focus on; Consolidating the immature business Increasing occupancy Increasing utilisation of se
Slide 16: Mature & Immature Net Profit Before Tax FY2002–FY2012 Forecast
Servcorp Limited Mature & Immature Net Profit Before Tax 10 Years ended FY 2011 & Forecast FY 2012 $60.0 $54.4 $52.8 $50.0 $42.9 $40.0 $38.3 $37.0 $31.2 $30.0 $28.2 $25.1 $AUD in Millions $20.0 $14.9 $10.0 $4.9 $6.1 $0.0 ($0.8) ($1.3) ($3.1) ($5.1) ($4.7) ($10.0) ($8.2) ($7.1) ($8.8) ($20.0) ($20.0)
Slide 17: Dividend FY 2012
Dividend FY 2012 Interim Dividend (declared) – 7.5 cents per share (50% franked) Final Dividend (anticipated) – 7.5 cents per share (expected to be 50% franked) [This payment is subject to currencies remaining constant, global financial markets remaining stable and no unforeseen circumstances] 13