Slide 1: FY 2018 Results Presentation
Servcorp Limited For personal use only FY 2018 Results Presentation Wednesday 22 August 2018 Presented by: Mr. Marcus Moufarrige, Chief Operating Officer 1
Slide 2: Disclaimer
Disclaimer Important Information For personal use only 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: Overview
Overview For personal use only Introduction The flexible workspace industry (as it is now known) has seen unprecedented change as commercial real estate experiences significant disruption. Whilst this brings new competition and certain challenges, Servcorp believes it brings immense opportunity. We
Slide 4: FY18 Result
FY18 Result For personal use only Underlying NPBT $37.9m, down $10.3m Underlying Statutory Statutory FY18 v Constant FY18 FY18 FY17 FY17 FX A$m A$m A$m Revenue 314.4 314.4 329.6 5% 3% Operating expenses (276.5) (276.5) (281.4) < 1% Strategic initiative expenses - (5.8) - Net profit before tax 37.9 3
Slide 5: FY18 Result (cont'd)
FY18 Result (cont’d) For personal use only Operating performance Net operating cash flows $50.1m, down $4.3m on FY17 Statutory NPBT $32.1m, down $16.1m on FY17; within FY18 NPBT guidance of between $30.0m and $35.0m One-off strategic initiative expenses incurred in FY18 of $5.8m Underlying
Slide 6: Strategic Initiatives
Strategic Initiatives For personal use only Long term value 3rd party consultation and market review Focus on long term value Responding to competitive pressures Executed initiatives include change of look and feel and customer experience Remain focused on generating recurring net operatin
Slide 7: Statutory Position
Statutory Position Balance sheet and Cash flow For personal use only Jun-18 Jun-17 FY18 FY17 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 93.4 104.4 Opening cash 1 July 104.4 95.8 Trade receivables 43.9 41.7 Net operating cash flows 50.1 54.4 PP&E 134.1 125.8 Net investing cash flows (30.3) (23.0) G
Slide 8: Performance
Performance Satisfactory underlying performance For personal use only FY18 NPBT of $32.1m underpinned by a strong North Asia result offset by the underperformance of the USA, Saudi Arabia and Singapore and $5.8m of one-off expenses relating to strategic initiatives Underlying NPBT of $37.9m excl
Slide 9: Positioning
Positioning Healthy cash flow & liquidity For personal use only Cash flows generated from operations of $50.1m, down $4.3m Cash balances of $97.1m 9
Slide 10: Servcorp Capacity
Servcorp Capacity Servcorp Coworking For personal use only Our investment in reshaping our portfolio to modernise current fit-outs and enhance our coworking offering is progressing well We have completed 61 locations and expect to complete a further 18 locations during the remainder of calendar
Slide 11: Segment Performance
Segment Performance Global overview For personal use only Revenue Revenue Growth Profit / (Loss) Margin Segment A$m % A$m % FY18 FY17 Actual Constant FX FY18 FY17 FY18 FY17 Australia, New Zealand & South 88.8 89.6 (1%) 7.2 6.4 8% 7% East Asia North Asia 108.7 107.1 1% 24.0 21.4 22% 20% Europe & Midd
Slide 12: Operating Summary by Segment: ANZSEA
For personal use only Operating Summary by Segment ANZ and South East Asia (ANZSEA) NPBT performance in ANZ / SEA increased by 13% Singapore and Indonesia underperformed while the balance of the region is healthy 12
Slide 13: Operating Summary by Segment: North Asia
Operating Summary by Segment (cont’d) For personal use only North Asia North Asia as a whole produced an outstanding result NPBT for FY18 was $24.0m, up 12% from $21.4m in FY17 13
Slide 14: Operating Summary by Segment: Europe and Middle East
Operating Summary by Segment (cont’d) For personal use only Europe and Middle East (EME) Like for Like floors in the Europe and Middle East segment produced a weaker result in FY18 mainly due to tough markets in Saudi Arabia partially offset by a solid UK result The UAE also had a tough year giv
Slide 15: Operating Summary by Segment: USA
Operating Summary by Segment (cont’d) For personal use only USA Slower than expected progress New market initiatives showing early positive signs Market becoming more educated Tax write down does not impact cash We still believe there is significant potential 15
Slide 16: Dividend
Dividend For personal use only Final FY18 dividend Final dividend payable of 13.0 cps, 25% franked Total FY18 dividends payable of 26.0 cps, 16% franked Forecast FY19 dividendA Dividends of 26.0 cps (13.0 cps each half) are anticipated to be paid for FY19 FY19 franking levels are uncertain A
Slide 17: Outlook
Outlook FY19 NPBT guidanceA is between $34.0m and $40.0m, FY19 new For personal use only floor operating losses of between $4.0m and $5.0m and FY19 net operating cash flows exceeding $50.0m. Reflecting Directors’ confidence in Servcorp’s future, dividends of 26.0 cps (13.0 cents in each half) are an
Slide 18: Questions and Answers
For personal use only 18 & ANSWERS QUESTIONS