Slide 1: FY21 Results Presentation
Servcorp Limited For personal use only FY21 Results Presentation Thursday 26 August 2021 Presented by: Mr. Alf Moufarrige, Chief Executive Officer & Mr. Anton Clowes, Chief Financial 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: 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 For personal use only been swift and we continue to manage through the pandemic by prioritising: A strong liquidity position Current cash bala
Slide 4: For personal use only
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Slide 5: Headline
Headline Reasonable underlying FY21 performance despite difficult COVID-19 For personal use only 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 8
Slide 6: FY21 Result
FY21 Result Statutory NPAT $22.1m, up 219% For personal use only UnderlyingA FY21 v Statutory FY21 v Profit & Loss FY21 FY20 FY20 FY21 FY20 FY20 A$m A$m Revenue and other income 275.7 352.9 22% 275.2 352.9 22% Operating expenses (245.7) (315.4) 22% (247.2) (337.3) 27% Net profit before tax 30.0 37.5
Slide 7: Statutory Position
Statutory Position Balance sheet and Cash flow For personal use only Jun-21 Jun-20 FY21 FY20 Balance Sheet Cash Flow A$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)
Slide 8: Performance
Performance Underlying operating performance For personal use only 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 $2
Slide 9: Positioning: Cash flow & liquidity
Positioning Cash flow & liquidity For personal use only • 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 $110.0m 9
Slide 10: Servcorp Capacity: Global Footprint
Servcorp Capacity Global Footprint For personal use only Our global footprint encompasses 125 floors, in 43 cities across 21 countries In FY21 we opened one floor in Manila & closed two floors Office Capacity 6,000 (Al Khobar & NYC). 5,751 5,615 5,788 5,039 Net capacity increased by (136) 173 10
Slide 11: Servcorp Capacity: Coworking
Servcorp Capacity For personal use only Coworking Recent growth in the flexible workspace industry has been underpinned by the expansion of coworking spaces. While the COVID-19 pandemic had a significant impact on coworking initially, our investment pre-COVID in refurbishing reception areas has play
Slide 12: Segment Performance
Segment Performance For personal use only Global overview MatureA Revenue Mature Mature Cash Margin Segment Revenue Growth NPBTB EarningsC A$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)
Slide 13: Operating Summary by Segment: ANZ and South East Asia
Operating Summary by Segment For personal use only ANZ and South East AsiaA (ANZSEA) • FY21 Mature Revenue and Mature: Revenue, Cash Earnings & Segment Profit Segment Profit were down $90.0 16% and 75% respectively $80.0 with operations having been $75.0 substantially impacted by $67.1 COVID-19. $60
Slide 14: Operating Summary by Segment: North Asia
Operating Summary by Segment (cont’d) For personal use only North Asia Despite the impact of COVID-19 Mature: Revenue, Cash Earnings & Segment Profit North Asia as a whole produced a $150.0 solid result with the drag on profit $130.6 attributed to China (including $125.0 $117.5 Hong Kong). Matur
Slide 15: Operating Summary by Segment: Europe and Middle East
Operating Summary by Segment (cont’d) For personal use only Europe and Middle East (EME) EME was substantially impacted Mature: Revenue, Cash Earnings & Segment Profit by COVID-19. Mature Revenue $100.0 $91.6 and Mature Cash Earnings were down 22% and 61% respectively in FY21 compared to FY20. $75
Slide 16: Operating Summary by Segment: USA
Operating Summary by Segment (cont’d) For personal use only USA As a result of the restructure in Mature: Revenue, Cash Deficit & Segment Loss FY20 the smaller USA footprint $25.0 $23.0 concentrated in three cities on the east coast and Houston in $20.0 Texas, means the USA has had less of an impa
Slide 17: Dividend
Dividend Final FY21 dividend For personal use only Final dividend Dividends paid (cents per share) payable of 9.0 cps, 30.0 unfranked, payable 26.0 26.0 on 7 October 2021 25.0 23.0 FY22 dividendA 20.0 13.0 13.0 10.0 20.0 18.0 FY22 dividends are cps 15.0 9.0 uncertain however, we 9.0 would expect
Slide 18: Outlook: FY22 Guidance
Outlook FY22 GuidanceA For personal use only While it remains unclear how long the path to a post-COVID world is, we remain optimistic. The roll out of the vaccine across markets in which we operate, as well as impacts of fiscal stimulus, are supporting economic activity, with both business and cons
Slide 19: Outlook (cont'd): Path to Post-COVID World
Outlook (cont’d) Path to Post-COVID World For personal use only In order to achieve our guidanceA and cash flow forecastsA we remain focused on controlling operating expenditure, maintaining strong liquidity and encouraging team members and clients to be vaccinated. Furthermore we are prepared for r
Slide 20: Questions & Answers
For personal use only 20 & ANSWERS QUESTIONS