Slide 1: Full Year Results Presentation cover letter
20 August 2009 The Manager Company Announcements Office Australian Stock Exchange Limited By electronic lodgement Dear Sir Servcorp Limited (SRV) Full Year Results Presentation nclosed is a copy of the 2009 Full Year Results briefing presented at Servcorp’s analyst pkesentation held at Level 12 MLC
Slide 2: Servcorp Limited Analyst Presentation
Servcorp Limited Analyst Presentation Thursday 20 August 2009 Twelve months ended 30 June 2009
Slide 3: Servcorp Background
Servcorp Background World’s finest Serviced Offices and Virtual Offices Market leader – Excellence in every aspect of the business Established 1978 Listed in December 1999 13 Countries - 22 Cities - 67 Floors No longer “just” a Serviced Office provider Global network of real technology
Slide 4: Servcorp Floors Geographic Spread
Servcorp Floors Geographic Spread Qatar - 2 Bahrain - 2 UAE - 2 Belgium - 2 Australia - 18 France - 4 Japan - 17 New Zealand - 3 Singapore - 5 China - 5 Thailand -3 Malaysia - 2 Hong Kong - 2 Australia New Zealand Singapore China Hong Kong Malaysia Thailand Japan France Belgium UAE Qatar Bahrain 3
Slide 5: 2008/2009 Operational Highlights
2008/2009 Operational Highlights Tough trading environment in FY 2009 Increased competition Margins dropping Relatively strong occupancy 2 new floors opened in Australia – North Sydney and Adelaide Cost cutting initiatives implemented since July 2008 Closure of 6 floors in FY 2009 4
Slide 6: 2008/2009 Operational Highlights
2008/2009 Operational Highlights Consolidation – slowed expansion/shut non-profit makers Virtual Office success – automating and optimising Testing new Virtual Office business model Middle East success Focusing on the resilience of our business model Looking at opportunities in the USA a
Slide 7: 2008/2009 Operational Highlights
2008/2009 Operational Highlights New Virtual website available worldwide Sign up on-line Automatic set up Access to Hottdesk = access to Servcorp New Servcorp website and Hottdesk 6
Slide 8: Virtual Office Focus Increased Revenue – test sites
Virtual Office Focus Increased Revenue – 2 test sites Automated and Optimised Growth over ARIAKE (Tokyo) Jun-09 Jun-08 12 months Revenue (JPY) 6,558,369 3,854,053 70% Packages 836 503 66% Growth over NORWEST (Sydney) Jun-09 Mar-09 4 months Revenue (AUD) 15,097 12,186 24% Packages 152 109 39% New V
Slide 9: 2008/2009 Operational Highlights
2008/2009 Operational Highlights New Prospect System for Offices Allocated working phone number instantly Instant proposal Instant lease (in October 2009) Instant set up 8
Slide 10: 2008/2009 Operational Highlights
2008/2009 Operational Highlights Onefone – Virtual clients One number Hand set online One bill Cheap calls 9
Slide 11: 2008/2009 Operational Highlights
2008/2009 Operational Highlights OFFICE² Tough climate for startup Three projects operational - two stable one very challenging (i- City) Refocus away from costly marketing onto development and Cisco partnership Accepted into Cisco Developer Program Working closely with Servcorp team on pr
Slide 12: Financial Highlights
Twelve months ended 30 June 09 Financial Highlights % 000’s Revenue Up 20% to $228,646 Mature floor profit Up 3% to $54,360 Net Profit Before Tax Up 6% to $47,275 Net Profit After Tax Up 0.8% to $34,097 Earnings Per Share Up 1.7% to $0.427 Negligible Debt ($1,662) Net Assets Up 14% to $145,291 Cash
Slide 13: Consolidated Revenue AUD(Millions)
Servcorp Consolidated Total Revenue 10 years 2000 – 2009 250.0 228.7 190.1 200.0 167.5 Consolidated Revenue 145.9 AUD(Millions) 150.0 122.7 124.1 118.4 113.8 107.5 100.0 59.9 50.0 0.0 2000 (8 2001 2002 2003 2004 2005 2006 2007 2008 2009 Months) Financial Year 12
Slide 14: Consolidated Net Profit Before Tax years 2005–2009
Servcorp Consolidated Net Profit Before Tax 10 years 2005 – 2009 50.0 47.3 44.6 45.0 40.0 35.2 34.1 35.0 Net Profir Before Tax 30.0 AUD(Millions) 23.5 25.0 18.9 20.0 13.7 15.0 9.0 10.0 5.3 5.0 0.0 -0.2 -5.0 2000 (8 2001 2002 2003 2004 2005 2006 2007 2008 2009 M onths) Financial Year 13
Slide 15: Mature / Immature Floors & Office² NPBT
Servcorp Mature / Immature Floors & Office² NPBT – 10 years 2000 – 2009 60 Record 52.8 Mature 54.3 floor 55 result in 2009 50 42.9 38.4 Mature floor profit 45 40 35 up 3% compared Net Profit Before Tax to 2008 28.4 28.1 AUD(Millions) 30 25 20 14.9 7 floors immature as 15 9.4 at 30 June 2009 10
Slide 16: Consolidated Earnings Per Share years 2000–9
Servcorp Consolidated Earnings Per Share 10 years 2000 – 2009 50.0 42.7 42.0 40.0 32.7 31.6 AUD(Cents Per Share) 30.0 Earning Per Share 21.4 20.0 11.8 9.0 10.0 2.9 1.8 0.0 -4.0 -10.0 2000 (8 2001 2002 2003 2004 2005 2006 2007 2008 2009 months) Financial Year 15
Slide 17: 2008–2009 Focus Was On
2008 – 2009 FOCUS WAS ON: Management and IT implementation rather than expansion Sales, revenue, margins and controlling costs Customer service and retention Providing our clients with IT and Communications infrastructure that helps their businesses succeed. Differentiating our business mo
Slide 18: Around The World 2009–2010: Australia & New Zealand
Around The World 2009 – 2010 AUSTRALIA & NEW ZEALAND Landlords are trying to hang in there but… Rents are dropping Australia is tough Mining cities – seeing increased vacancy Looking at opportunities in Sydney, Melbourne and Brisbane New Zealand in recession – but Wellington is performin
Slide 19: Around The World 2009–2010: Japan
Around The World 2009 – 2010 JAPAN Great locations performing well but …… Extremely competitive markets – particularly in Tokyo Economic melt down – soft results Paying $250,000 too much in rent per month – aim to reduce significantly by February 2010 Best address at a bargain at Marunouch
Slide 20: Around The World 2009–2010: Asia & China
Around The World 2009 – 2010 ASIA & CHINA Rents have dropped Hong Kong and Singapore – signed IFC2 and MBFC Shanghai has a massive over supply of space Beijing rents are dropping Strong AUD doesn’t help Virtual Office model growth 19
Slide 21: Around The World 2009–2010: Middle East and India
Around The World 2009 – 2010 MIDDLE EAST Dubai– Good results considering climate Bahrain – Profitable Qatar – Tough but better second half Coming soon – Abu Dhabi, Jeddah and Kuwait Virtual Office model growth INDIA Franchise breaking even Opportunities for growth both in Virtual and O
Slide 22: Around The World 2009–2010: Europe and USA
Around The World 2009 – 2010 EUROPE Paris – is really tough Brussels – surprised to the upside in 2009 Coming soon – UK Strong Virtual Office model growth Automated and Optimised USA Opening soon in Chicago and New York 21
Slide 23: Around The World 2009–2010: IT Client Services and Solutions
Around The World 2009 – 2010 IT CLIENT SERVICES AND SOLUTIONS No longer just a serviced office Real integrated business Delivery of sophisticated client services online to improve return OneFone OneFax Wireless Maximise return from global converged network – real IT infrastructure We
Slide 24: 2009/2010 Outlook
2009/2010 Outlook Tough six months ahead in the existing business Real Estate opportunities abound globally Existing markets UK and USA Virtual Office model focus – automated, optimised, small locations, mass business market product Transition year: Moving from a Serviced Office business
Slide 25: 2008/2009 Dividend
2008/2009 Dividend December 2008 5 cents fully franked special dividend April 2009 10 cents fully franked ordinary dividend October 2009 10 cents fully franked ordinary dividend 24
Slide 26: Ariake packages and projections
Ariake Pa c k a g e s pro je c te d 1200 Ac tu a l Pa c k a g e s 115 0 1100 900 85 0 105 0 800 1000 75 0 95 0 700 65 0 900 600 85 0 APR AUG SEP DEC OCT NOV JUN FEB MAR 2010 JAN MAY 2009 JUL 550 5 00 450 APR AUG SEP DEC OCT NOV JUN FEB MAR 2009 JAN MAY 2008 JUL PROJECTIONS FROM JUNE 2010 Virtual Inc
Slide 27: Tokyo Map
Tokyo Map shihays esi S:SERVCORP | Virtual Office Everything bat the office