Slide 1: 1H21 Results Presentation
Servcorp Limited For personal use only 1H21 Results Presentation Wednesday 24 February 2021 Presented by: Mr. Alf Moufarrige, Chief Executive Officer & Mr. Anton Clowes, Chief Financial Officer Presented by: Mr. Alf Moufarrige, Chief Executive 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: COVID-19
COVID-19 The impact of COVID-19 on the flexible workspace industry has been unprecedented. Servcorp’s response to the existing global For personal use only environment has been swift and we continue to manage through the pandemic by prioritising a range of potential recovery scenarios: A strong li
Slide 4: For personal use only
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Slide 5: Headline
Headline 1H21 performance reflecting challenging COVID-19 trading conditions For personal use only and global economic environment Underlying Free Cash down 14% Revenue and other incomeA down 22% Like for Like revenue down 14% (constant currency down 11%) UnderlyingB NPBT down 10% FY21 i
Slide 6: 1H21 Result
1H21 Result Underlying NPBT $19.0m, down 10% For personal use only UnderlyingA 1H21 v Statutory 1H21 1H20 1H20 1H21 1H20 A$m A$m Revenue and other income 140.0 178.3 22% 142.0 178.3 Operating expenses (121.0) (157.3) 23% (124.1) (159.4) Net profit before tax 19.0 21.0 10% 17.9 18.9 Income tax expens
Slide 7: Statutory Position: Balance sheet and Cash flow
Statutory Position Balance sheet and Cash flow For personal use only Dec-20 Jun-20 1H21 1H20 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 87.1 99.9 Opening cash 1 July 99.9 65.1 Trade receivables 23.0 31.1 Net operating cash inflows 68.0 91.0 PP&E 427.4 476.4 Net investing cash flows (2.4) (5.9) Goo
Slide 8: Performance
Performance Underlying operating performance For personal use only 1H21 revenue $140.0m (excluding $2.0m JobKeeper subsidy), down 22% on 1H20. Like for Like revenue $139.7m, down 14% (down 11% on a constant currency basis) reflecting the benefits of the global footprint consolidation undertaken in
Slide 9: Positioning: Cash flow & liquidity
Positioning Cash flow & liquidity For personal use only • Overall cash decreased by $11.3m from 30 June 2020 to $90.1m at 31 December 2020 primarily driven by a strengthening Australian dollar. 9
Slide 10: Servcorp Capacity: Global Footprint
Servcorp Capacity Global Footprint For personal use only Our global footprint encompasses 125 floors, in 43 cities across 21 countries In 1H21 we closed two floors, Park Avenue in New York City and Al Hugayet in Al Khobar. Net capacity decreased by 36 offices to 5,003 and FY21 capacity is foreca
Slide 11: Servcorp Capacity: Coworking
Servcorp Capacity For personal use only Coworking The COVID-19 pandemic continues to have a significant impact on coworking. Given the nature of coworking and its inherent lack of social distancing, coworking is still expected to take significantly longer to recover from COVID-19. We continue to hol
Slide 12: Segment Performance: Global overview
Segment Performance For personal use only Global overview Like for Like Like for LikeA Like for Like Segment Segment Profit / Margin Revenue Cash EarningsB (Loss) A$m A$m A$m % 1H21 1H20 1H21 1H20 1H21 1H20 1H21 1H20 ANZ & SEA 32.9 41.3 0.1 7.7 4.9 9.2 0% 19% North Asia 61.5 63.1 13.7 10.2 15.0 12.4
Slide 13: Operating Summary by Segment: ANZ and South East Asia
Operating Summary by Segment For personal use only ANZ and South East Asia (ANZSEA) • Excluding the JobKeeper subsidy, Like for Like revenue is down 20% in 1H21 having been impacted by COVID-19. • Similarly Like for Like Segment Profit was down 98% in 1H21 however, the region was cash flow positive,
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 North Asia as a whole produced a solid result with the drag on profit attributed to China (including Hong Kong). Like for Like revenue was down 3% from $63.1m to $61.5m. Like for Like Cash Ear
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) Despite the impact of COVID-19 EME produced a reasonable result with contributions from Saudi Arabia, UK and Qatar partially offset by an under performance from France. Like for Like revenue and Like for Lik
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 FY20 the smaller USA footprint concentrated in three cities on the east coast and Houston in Texas, means the USA has had less of an impact on the global performance. The USA has been severely impacte
Slide 17: Dividend
Dividend Interim FY21 dividend For personal use only Interim dividend payable of 9.0 cps, unfranked, payable on 7 April 2021 Expected FY21 dividendA Final dividend of 9.0 cps is expected to be paid for FY21 Franking levels are uncertain A. Subject to currencies remaining constant, continued st
Slide 18: Outlook: COVID-19 and the next months
Outlook COVID-19 and the next 12 months For personal use only While it remains unclear how long the global COVID-19-led recession will last, we remain cautiously optimistic. The imminent roll out of the vaccine across markets in which we operate, as well as impacts of fiscal stimulus, are supporting
Slide 19: Outlook (cont'd): FY21 & Post-COVID
Outlook (cont’d) FY21 & Post-COVID For personal use only For the remainder of FY21 we anticipate sustained difficult trading conditions however, even at a low case, the underlying business will remain profitableA and cash generating. In those circumstances, we would expect to continue to make divide
Slide 20: Questions & Answers
For personal use only 20 & ANSWERS QUESTIONS