Servcorp Limited · ASX:SRV
Servcorp — Shareholder Meeting (November 2021)
14 slides from Servcorp's shareholder meeting presentation, Nov 10, 2021
Slide 1: Servcorp Limited Annual General Meeting
Servcorp Limited Annual General Meeting Wednesday 10 November 2021 Presented by: Mr. Alf Moufarrige, Chief Executive Officer This presentation is approved and authorised by the Board of Directors of Servcorp Limited. 1
Slide 2: Disclaimer
Disclaimer Important Information Servcorp Limited (ABN 97 089 222 506) (“Servcorp”) is the parent entity of the Servcorp Group and is responsible for all information contained in this presentation. Not an offer nor investment advice This presentation is not an offer or invitation for subscription or
Slide 3: Servcorp's Aim
Servcorp’s Aim To be the world’s finest Workspace Solutions provider, by: providing IT and commercial services second to none; giving our clients a commercial advantage; paying our people reasonable wages; and giving our shareholders an acceptable return on the funds they invest. 3
Slide 4: FY21 in Review
FY21 in Review The impact of COVID-19 on the flexible workspace industry has been unprecedented. Servcorp’s response to the existing global environment has been swift and we continue to manage through the pandemic and post-pandemic world by prioritising: A strong liquidity position Current cash ba
Slide 5: FY21 Headline
FY21 Headline Reasonable underlying FY21 performance despite difficult COVID-19 trading conditions Underlying Free Cash $49.9m (down 25%) Revenue and other incomeA down 22% Mature revenue down 17% (constant currency down 10%) UnderlyingB NPBT down 20% Statutory NPBT up 83% FY21 final d
Slide 6: FY21 Result
FY21 Result Statutory NPAT $22.1m, up 219% UnderlyingA FY21 v Statutory FY21 v Profit & Loss FY21 FY20 FY20 FY21 FY20 FY20 A$m A$m Revenue and other income 275.7 352.9 22% 275.2 352.9 22% Operating expenses (245.7) (315.4) 22% (247.2) (337.3) 27% Net profit before tax 30.0 37.5 20% 28.5 15.6 83% Inc
Slide 7: Statutory Position
Statutory Position Balance sheet and Cash flow Jun-21 Jun-20 FY21 FY20 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 93.8 99.9 Opening cash 1 July 99.9 65.1 Trade receivables 24.0 31.1 Net operating cash inflows 151.2 182.3 PP&E & ROUA 392.4 476.4 Net investing cash flows (7.0) (18.0) Goodwill 13.8 1
Slide 8: Performance
Performance Underlying operating performance Revenue Underlying NPBT $375.0 $60.0 $352.9 $350.0 $337.4 $48.2 $329.6 $21.5 $50.0 $325.0 $2.4 $314.4 $37.9 $37.5 $2.9 $39.0 $40.0 $5.9 $32.0 $30.0 $300.0 A$m A$m $275.7 $30.0 $1.5 $275.0 $0.4 $21.9 $331.4 $48.2 $19.4 $327.2 $20.0 $250.0 $311.5 $298.4 $32
Slide 9: Positioning
Positioning Cash flow & liquidity • Underlying Free Cash $49.9m, down 25% • Cash $97.0m at 30 June 2021, decreased by $4.4m primarily driven by a strong Australian dollar and $8.0m downward cash balance revaluations • Current cash balances in excess of $105.0m (net of final dividend payment in Octob
Slide 10: Servcorp Capacity
Servcorp Capacity Global Footprint Our global footprint encompasses 125 floors, in 43 cities across 21 countries In FY21 we opened one floor in Manila & closed two floors Office Capacity 6,000 (Al Khobar & NYC). 5,751 5,615 5,788 5,039 Net capacity increased by (136) 173 102 offices to 5,141. 5,
Slide 11: Servcorp Capacity: Coworking
Servcorp Capacity Coworking Recent growth in the flexible workspace industry has been underpinned by the expansion of coworking spaces. While the COVID-19 pandemic had a significant impact on coworking initially, our investment pre-COVID in refurbishing reception areas has played a substantial part
Slide 12: FY21 Segment Performance
FY21 Segment Performance Global overview MatureA Revenue Mature Mature Cash Margin Segment Revenue Growth NPBTB EarningsC A$m % A$m A$m % Constant FY21 FY20 Actual FY21 FY20 FY21 FY20 FY21 FY20 FX ANZSEAD 67.1 80.0 (16%) (14%) 2.5 9.9 5.3 15.1 4% 12% USA 13.4 23.0 (42%) (24%) (4.5) (6.9) (2.7) (4.5)
Slide 13: Dividend
Dividend Final FY21 dividend Final dividend paid of Dividends paid (cents per share) 9.0 cps, unfranked 30.0 Total FY21 dividends 26.0 26.0 paid of 18.0 cps, 25.0 23.0 unfranked 20.0 20.0 13.0 13.0 18.0 18.0 Minimum 10.0 cps 15.0 9.0 expected FY22 9.0 9.0 dividendA 10.0 13.0 13.0 13.0 Minimum
Slide 14: Guidance & Trading Update
Guidance & Trading Update FY22 guidanceA reaffirmed Servcorp reaffirms FY22: MatureB NPBITC between $33.0m and $36.0m Underlying Free Cash of more than $50.0m Minimum dividendA of 18.0 cps (9.0 cps in each half); future franking levels are uncertain In order to achieve guidanceA and cash flow