Slide 1: FY25 Results Presentation
For personal use only FY25 RESULTS PRESENTATION
Slide 2: Disclaimer
Disclaimer For personal use only 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 invitati
Slide 3: Table of Contents
Table of Contents For personal use only 1. Highlights 2. Business Update 3. Global Expansion 4. Financial Results 5. Segment Overview 6. Outlook & Dividend 7. Appendices
Slide 4: Highlights
For personal use only
Slide 5: Underlying Results
Underlying Results For personal use only Underlying Free Cash* Underlying NPBIT* on pcp on pcp Underlying Operating Underlying Operating Revenue Profit on pcp on pcp Underlying EPS DPS on pcp on pcp * FY25 Guidance for Underlying Free Cash: at least $75.0m ** FY25 Guidance for Underlying NPBIT: $61.
Slide 6: Statutory Results
Statutory Results For personal use only Statutory Revenue Statutory Operating Profit on pcp on pcp Statutory NPBT Statutory NPAT on pcp on pcp Free Cash* Basic EPS on pcp on pcp 6 * Cash inflow from Operating Activities adjusting for lease payments
Slide 7: Business Update
For personal use only
Slide 8: A Landmark Year
A Landmark Year For personal use only Record Profit: Underlying NPBIT more than doubled over 3 years RECORD RECORD EARNING UNDERLYING NPBIT PER SHARE (EPS) RECORD DIVIDEND RECORD (DPS) UNDERLYING FREE CASH 8
Slide 9: Investing in Tech & People
Investing in Tech & People For personal use only Enhanced Smart Office® Platform Enterprise Messaging System Streamlining Client Communications Major digital infrastructure upgrades was completed within our Smart Office® ecosystem, including the full migration of Development of aproprietary messagin
Slide 10: Global Expansion
For personal use only
Slide 11: Growing Global Presence
Growing Global Presence For personal use only • During FY25, 6 new operations were opened, including 1 in ANZ & South East Asia and 5 in Europe & the Middle East. • 2 locations were closed in FY25, including 1 in North Asia and 1 in Europe & the Middle East. Capital resources from closed floors were
Slide 12: Improved Global Footprint
Improved Global Footprint For personal use only Office Capacity 5,999 6,000 452 5,547 5,500 5,326 221 5,141 5,162 5,150 176 Offices (12) 5,000 21 5,547 5,141 4,500 4,000 FY21 FY22 FY23 FY24 FY25 FY26 Forecast Net capacity added Net capacity reduction Forecast net capacity In FY25, Servcorp continued
Slide 13: Portfolio Overview
Portfolio Overview For personal use only ANZ & SEA Diversified North Asia Europe & Middle East Client Base USA Staggered Lease Expir y Profile Less than 1 year 1 to 3 years 3 to 5 years 5 to 10 years Over 10 years 13
Slide 14: Financial Results
For personal use only
Slide 15: Financial Performance
Financial Performance For personal use only Revenue Underlying NPBIT 352.1 360.0 75.0 69.1 317.0 295.5 300.0 275.6 60.0 56.3 240.0 47.8 45.0 #039;mil #039;mil 180.0 31.0 30.0 120.0 60.0 15.0 - - FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Return on Funds Employed ROFE FY25, 74% FY24, 68% FY25 FY23, 62% FY21 U
Slide 16: Revenue
Revenue Record Underlying Operating Revenue & Record Revenue per Floor For personal use only Revenue Underlying Operating Revenue on pcp +$ +$ GROWTH** Client PRICING** Satisfaction continues OFFICES improving + cOWORKING 16 * Underlying Operating Revenue refers to revenue generated by Mature floors
Slide 17: Expenses
Expenses Continued investment in people and tech to drive long-term sustainable growth For personal use only Expenses • Service expenses increased by $9.0m (12%), mainly due to additional investment in team resources and human capital to support global portfolio expansion. In FY25, 221 new offices w
Slide 18: Profitability
Profitability Profitability For personal use only Underlying Operating Profit up 27%; Statutory NPBT up 46% • Strong Underlying NPBIT of $69.1m, more than doubled over the last 3 years • Statutory NPBT includes non-recurring adjustment totalling $1.6m ($8.2m net cost in FY24): o One-off non-cash adj
Slide 19: Cash Flow
Cash Flow Large cash reserve to support organic growth and continued global expansion For personal use only FY25 FY24 Var Var #039;m #039;m #039;m % Net Operating Cash flow 191.8 165.8 26.0 16% Add: Tax paid 5.3 10.5 (5.2) (49%) Less: Lease liability Cash Rent for related period paid in related period 115.3
Slide 20: Cash Flow
Cash Flow For personal use only Includes expansion at six new operations & 350.0 upcoming centres Mostly relating to profit growth in 300.0 regions with lower income tax regime Dividend of 28.0 cps 250.0 (129.3) made up of net rent timing differences & 211.1 200.0 FX movements Total in $m 2.9 ($5.3)
Slide 21: Balance Sheet
Balance Sheet For personal use only Balance Sheet Jun-25 Jun-24 PP&E ROUA Total PP&E & ROUA #039;m #039;m #039;m #039;m #039;m Cash 131.5 103.3 Opening balance 89.6 316.5 406.1 Trade Receivables1 43.1 35.9 PP&E & ROUA 415.6 406.1 Addition3 27.2 94.9 122.1 Software & Intangible 2.7 2.7 Disposal4 (2.1) - (2.1) Goodw
Slide 22: Segment Overview
For personal use only
Slide 23: Segment Overview
Segment Overview For personal use only AUNZ & SOUTH EAST ASIA NORTH ASIA • Continued gradual recovery supported by stable market conditions and • North Asia delivered a solid result in FY25, with revenue up 4% to targeted investment in capability, which in turn enables improved profit $90.0m and seg
Slide 24: All Mature Operations
All Mature Operations For personal use only • Strong Top-Line and Earnings Growth Mature revenue grew by $32.2m to $332.9m, reflecting solid demand, improved pricing, and stable occupancy across core regions. Segment profit rose by $14.5m to $68.4m, a 27% increase year-on-year. Cash earnings increas
Slide 25: ANZ & South East Asia
ANZ & South East Asia For personal use only • Steady Recovery and Revenue Growth ANZ & South East Asia continued their gradual recovery in FY25, supported by stable market conditions and ongoing investment in management capability. Revenue increased by $3.5m or 5% to $73.9m, with approximately half
Slide 26: North Asia
North Asia For personal use only • Resilient Performance Across Core Markets North Asia delivered a solid performance in FY25, with revenue rising by 4% to $90.0m and segment profit improving by 20% to $14.8m. Continued strength in Japan, supported by stable market demand and operational discipline,
Slide 27: Europe & Middle East
Europe & Middle East For personal use only • Strong Revenue and Earnings Growth Europe and the Middle East delivered the strongest regional performance in FY25, with mature revenue increasing by $21.1m on the prior year. Growth was supported by a combination of strong client demand, operational matu
Slide 28: USA
USA For personal use only • Encouraging Revenue Growth and Stabilisation The USA segment showed modest but meaningful progress in FY25, with revenue increasing by 16% to $22.0m. This was driven by a gradual recovery in occupancy and stabilisation of core operations, particularly in key metropolitan
Slide 29: Outlook & Dividend
For personal use only
Slide 30: Dividend
Dividend For personal use only Final FY25 Dividend • Final dividend payable of 14.0 cps, 10% franked, payable on 2 October 2025 • Total FY25 dividend is increased to 28.0 cps, up 12% on FY24 dividends • FY26 dividend payment is not expected to be below 30.0 cps. Dividends paid/estimate (cents per sh
Slide 31: Outlook & Guidance
Outlook & Guidance For personal use only Strategic Priorities and Operational Focus Servcorp’s aim is to provide the finest workspace solutions to our customers by providing the best locations, facilities, technology and people crucial to making businesses successful. Our operations span 19 countrie
Slide 32: Appendices
For personal use only
Slide 33: Revenue
Revenue For personal use only Revenue #039;m FY25 FY24* Var % Statutory Total Revenue 352.1 317.0 35.1 11% Add Revenue from JV operation 1.7 1.9 (0.2) (10%) Less Other revenue and income** (2.7) (2.9) 0.2 (6%) Operating Revenue 351.1 316.0 35.1 11% Less Pre-maturity revenue (18.2) (6.8) (11.4) 169% Pos
Slide 34: Profit
Profit FY25 #039;m FY24 #039;m Var #039;m Var % For personal use only Statutory NPBT 62.6 42.9 19.7 46% Add Operating loss from pre-mature or post-closure floors 4.9 5.2 (0.3) (5%) Impairment losses, closure costs and other non-recurring costs 1.6 8.2 (6.6) (81%) Underlying NPBIT 69.1 56.3 12.8 23% Less Inte
Slide 35: Profit
Profit For personal use only Statutory Profit Underlying FY25 FY24 Var Var FY25 FY24 Var Var #039;m #039;m #039;m % #039;m #039;m #039;m % Revenue and other income 352.1 317.0 35.1 11% Statutory Revenue and other income 352.1 317.0 35.1 11% Total expenses (289.5) (274.1) (15.4) (6%) Revenue from JV 1.7 1.9 (0.2) (10%
Slide 36: Segment
Segment For personal use only FY25 Total FY24 Total Adj. Total Revenue from Adj. from status Revenue from Revenue from Other FY25 Mature Revenue from Revenue from Other FY24 Mature new floors pre- changes since new floors pre- Continuing adjustments Revenue Continuing Continuing adjustments Revenue
Slide 37: KPI Tracker
KPI Tracker 400.0 70.0 350.0 60.0 300.0 50.0 EPS (cents) 250.0 40.0 200.0 #039;m For personal use only 30.0 150.0 Statutory Revenue Underlying NPBIT Underlying EPS 20.0 100.0 #039;m #039;m cents 10.0 50.0 FY21 275.7 30.0 24.4 FY22 275.6 31.0 26.1 - - FY23 295.5 47.8 38.4 FY21 FY22 FY23 FY24 FY25 FY24 317.0 5
Slide 38: Statutory vs. Underlying
Statutory vs. Underlying For personal use only Statutory Revenue vs. Revenue $352.1 Revenue from continuing operations and other income* 360.0 $317.0 Revenue from continuing $295.5 $1.1 Statutory Revenue 300.0 operations & other income $275.7 $275.6 $0.6 $3.4 $0.4 #039;m #039;m 240.0 $6.5 FY21 275.7 275.3
Slide 39: Glossary
Glossary For personal use only ANZ Australia and New Zealand Cash Earnings Is EBITDA minus Cash Rent paid Cash Rent Cash Rent is the amount paid to a landlord (or lessor) by Servcorp as a lessee under the terms of a signed lease agreement cps Cents per share DPS Dividend per share EME Europe & the M