Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year ended 31 December 2012 February 2013 1
Slide 2: Executive Summary
LSL Property Services plc Year results presentation February 2013 Executive Summary Very good progress during 2012 despite no improvement in market transaction levels - Underlying Group Operating profit up 13% to £35.1m - Net debt reduced by 25% to £26.6m - Full year dividend increased by 9% to 9.5p
Slide 3: Progress Highlights
LSL Property Services plc Year results presentation February 2013 Progress Highlights Good progress towards leadership in all key markets Agency – Asset Agency – Financial Surveying Agency – Branches Management Services LSL Market leader #2 in market Market leader #4 in market position 2012 2012 mar
Slide 4: Financial Performance
LSL Property Services plc Financial Performance
Slide 5: Summary Group Financials
LSL Property Services plc Year results presentation February 2013 Summary Group Financials EBITA £m 2012 2011 P&L 40 17.9% 15.4% 20% 14.4% Revenue 243.8 218.4 12% 35 14.2% EBITA margin (%) 30 15% EBITA (£m) 11.3% Underlying Group Operating 25 35.1 31.1 13% Profit(1) 20 10% 35.1 15 31.9 31.1 28.3 Mar
Slide 6: Financial Performance – Surveying
LSL Property Services plc Year results presentation February 2013 AWARDS Financial Performance – - Winner Best Surveyor/Valuer Surveying Surveying Segment Professional Indemnity costs 2012 2011 £17.3m additional provision booked as an Mortgage approvals ‘000 1,150 1,227 (6%) exceptional item at June
Slide 7: Financial Performance – Estate Agency
LSL Property Services plc Year results presentation February 2013 Financial Performance – Estate Agency Market 2012 2011 Inc/ (dec) House Puchase Mortgage Approvals 610,000 593,000 3% Actual – including M&P Like-for-Like – excluding M&P KPIs 2012 2011 Inc / (dec) 2012 2011 Inc/ (dec) Exchange Units
Slide 8: Marsh and Parsons
LSL Property Services plc Year results presentation February 2013 Marsh and Parsons Strong first year contribution Actual – incl Earls Court Like-for-Like – excl Earls Court 2012 2011 % inc H1 12 H1 11 % inc Revenue £m 27.3 26.6 2% 26.9 26.6 1% Operating Profit £m 7.2 6.8 6% 7.4 6.8 9% Margin % 26 2
Slide 9: Financials – Cashflow and Debt
LSL Property Services plc Year results presentation February 2013 Financials – Cashflow and Debt Continued Strong Cash Generation £m 2012 2011 Operating Cashflows Higher rate of PI cash settlements Operating Profit 35.1 31.1 Depreciation 3.5 2.6 Improvement in working capital following 2011 JV (1.3)
Slide 10: Market and Strategy
LSL Property Services plc Market and Strategy
Slide 11: Mortgage Market Overview
LSL Property Services plc Year results presentation February 2013 Mortgage Market Overview House Purchase Approvals Annual Growth in Mortgage Approvals (’000) (%) 800 40% Thousands 700 30% 600 20% 10% 500 0% 400 -10% 300 -20% 200 -30% 100 -40% Jan-11 Dec-11 Dec-12 Nov Nov Jun-11 Jun-11 Jan May May F
Slide 12: Surveying: Operations and Development
LSL Property Services plc Year results presentation February 2013 Surveying: Operations and Development Market Share Operational Update Surveying Market Share Focus on customer service levels and ’000 2008 2009 2010 2011 2012 innovation Jobs Performed 461 439 531 500 408 Ongoing investment in servic
Slide 13: Estate Agency
LSL Property Services plc Year results presentation February 2013 Estate Agency Agency Profit Transformation 2007 – 2012 Marsh and Parsons 13.5% 20% Key platform for growth through both new 30.0 15% openings and bolt on acquisitions in prime 10.0% 7.6% central London market 20.0 7.2% 10% 5.8% 5% New
Slide 14: Estate Agency – Counter-Cyclical Income
LSL Property Services plc Year results presentation February 2013 Estate Agency – Counter-Cyclical Income Total Lettings and Asset Management income up 43% to £62.3m Balanced Growth: Asset Management and Lettings Lettings Lettings income (excluding Marsh & Parsons) up 23% £m 70.0 5 Now represents 67
Slide 15: Estate Agency – other businesses
LSL Property Services plc Year results presentation February 2013 Estate Agency – other businesses Financial Services Total LSL lending up from £6.8bn to £7.1bn across Pink, First Complete and Linear Pink and Home of Choice acquired in 2010 as loss making businesses and transformed with revenue up 1
Slide 16: Summary
LSL Property Services plc Year results presentation February 2013 Summary Key areas of focus and growth opportunities Significant investment in organic growth opportunities: Estate Agency - Continuing to increase branch profitability through investment in resource to grow average fee and lettings
Slide 17: Appendices
LSL Property Services plc Appendices
Slide 18: LSL’s Genesis
LSL Property Services plc Year results presentation February 2013 LSL’s Genesis LSL’s business transformation from a loss making insurance distribution arm Key Events July 2001 2004 2011 2012 2008 New MBO of your-move and e.surv Q4 Renewal of Acquisition of First Complete Asset management acquisitio
Slide 19: Who are We Now?
LSL Property Services plc Year results presentation February 2013 Who are We Now? LSL Property Services plc Residential Property Buyers and Sellers Customer Capture Surveying Estate Agency Strategic Business Cross Surveying Selling Surveying Surveying Current Surveyors (Employees) Current Estate Age