Slide 1: Half Year Results Presentation cover letter
Servcorp Limited ABN 97 089 222 506 Level 12 MLC Centre 19-29 Martin Place Sydney NSW 2000 Australia T | +612 9231 7616 F | +61 29231 7665 W | servcorp.com.au 25 February 2010 The Manager Company Announcements Office Australian Stock Exchange Limited By electronic lodgement Dear Sir Servcorp Limited
Slide 2: Analyst Presentation, Six Months ended 31 December 2009
For personal use only Servcorp Limited Analyst Presentation Thursday 25 February, 2010 Alf Moufarrige, CEO Six Months ended 31 December 2009 Thomas Wallace, CFO 1
Slide 3: Operational Highlights H1 2010
Operational Highlights H1 2010 Mature floor NPBT of $12.05 million for H1 For personal use only 2010 (in line with forecast) Total Floors - 71 Virtual Office packages up 5% in H1 2010 Australia & 21 New Zealand (10% annualised) Japan 19 Virtual Office revenue up 7% in constant currency for H1
Slide 4: Financial Results - H1 2010
Financial Results - H1 2010 H1 2010 H1 2009 For personal use only % % $000's $000's (Constant Currency) Revenue 84,034 118,298 (29%) (21%) Mature Floor Net Profit Before Tax 12,003 27,308 (56%) (excluding interest, foreign exchange and abnormals) Mature Floor Net Profit Before Tax 12,045 31,666 (62%
Slide 5: Serviced Office Business
Serviced Office Business Very difficult trading environment in H1 2010 For personal use only as a result of the global financial crisis: Increased competition in Serviced Offices Occupancy rates have suffered Office prices have been impacted Serviced Office margins compressed Average occ
Slide 6: Virtual Office Business
Virtual Office Business For personal use only Continued growth of Virtual Office - package growth of 5% for H1 2010 (annualised 10% growth) Virtual Office revenue increased by 2% in H1 2010 Virtual Office revenue increased by 7% on a constant currency basis compared to H1 2009 Management are
Slide 7: Office Squared
Office Squared For personal use only The Office Squared business has been scaled back considerably In the process of terminating the Joint Venture in I-City Office Squared will continue to operate in two locations: Hangzhou, China Norwest, Sydney Losses for H1 2010 were $1.2 million Ac
Slide 8: Around The World 2009 – 2010: Australia, NZ, Japan
For personal use only Around The World 2009 – 2010 AUSTRALIA & NEW ZEALAND Not impacted to the same extent as other countries by the global financial crisis One floor will close in H2 2010 Intend to open four new locations by the end of calendar 2010 Virtual Office is performing well JAPAN
Slide 9: Around The World 2009 – 2010: Greater China, Southeast Asia
For personal use only Around The World 2009 – 2010 GREATER CHINA Loss of some big clients in Shanghai and Beijing Management has been restructured in Greater China Two floors will close in H2 2010 We have just opened in the best building in Hong Kong in 2IFC (January 2010) On track to reco
Slide 10: Around The World 2009 – 2010: Middle East, India
For personal use only Around The World 2009 – 2010 MIDDLE EAST The property market in Dubai has suffered a material downturn. Servcorp is still profitable in this city Other cities in the Middle East are performing as expected Opened new floors in Jeddah and Abu Dhabi in H1 2010 A floor in K
Slide 11: Around The World 2009 – 2010: Europe, USA
For personal use only Around The World 2009 – 2010 EUROPE Paris office market continues to be soft Brussels surprised on the upside and is now in profits London opened in December 2009 USA Commenced expansion in H1 2010 First floor to open in Chicago in March 2010 We expect to have at le
Slide 12: Global Expansion Is On Track
For personal use only Global Expansion Is On Track The intention is to rapidly expand Servcorp’s footprint globally The opportunity to expand exists now because: Real estate markets are at cyclical lows and rents can be locked in at low rates We have developed the Virtual Office business mod
Slide 13: 2009/2010 Outlook
2009/2010 Outlook Trading conditions will continue to be challenging in the medium term For personal use only Revenue in January / February 2010 is encouraging Mature floor net profit before tax will continue at approximately $2 million per month for the second half of the 2010 financial year
Slide 14: 2009 / 2010 Dividend
2009 / 2010 Dividend For personal use only March 2010 interim dividend of 5 cents (fully franked) declared October 2010 final dividend of 5 cents (fully franked) anticipated 12