Slide 1: Annual General Meeting
Annual General Meeting Wednesday 8 November 2017 1
Slide 2: Welcome
Welcome 1. NPAT has increased from $21.3m in FY 13 to $40.7m in FY 17, up 91% 2. Servcorp in the last 3 years has generated over $206m in pre- tax free cash flowA; free cash flow is up 77% since FY 13 3. Our share price has increased ~39%B since November 2013 4. FY 17 NPAT of $40.7m was an all time
Slide 3: Welcome cont’d
Welcome cont’d Our industry is in unprecedented transition We are seeing many new participants and as a result the shared workspace market is growing rapidly, more than 25% annually This opens up substantial opportunities for Servcorp. We expect our business returning to its traditional revenu
Slide 4: $30m investment in Servcorp’s future
$30m investment in Servcorp’s future We are investing $20m over the next 12 months reshaping the portfolio to modernise current fit-outs and to embellish their ecosystem to incorporate CoWorking as an integral piece In addition we are investing a further $10m over the next 12 to 18 months to imp
Slide 5: Tri-Seven Tokyo | Barangaroo Sydney
Tri-Seven Tokyo | Barangaroo Sydney 5
Slide 6: Headline performance
Headline performance Revenue and other income of $329.6m, up $1.0m NPBT of $48.2m, down 1% on pcp NPAT of $40.7m, up 3% on pcp Like for Like NPBT of $58.1m, up 16% Operating cash flow from operations (after tax) of $54.4m, down 10% Unencumbered cash balance of $107.9m, up 8% on pcp NTA
Slide 7: NPAT $40.7m, up 3%, record result
NPAT $40.7m, up 3%, record result 7
Slide 8: Balance sheet and Cash flow
Balance Sheet Cash Trade & other receivables PP&E Goodwill Deferred tax asset Other assets Total assets Trade & other payables Provisions Deferred tax liabilities Other liabilities ‘tal liabilities Net assets Jun-17 ASm 104.4 41.7 125.8 14.8 33.6 70.4 390.7 79.5 76 1.2 35.2 12: Jun-16) ASm| 95.8 40.
Slide 9: Our story
Our story Servcorp Location Growth Servcorp Office Growth 140 138 7,000 135 134 6,000 5,751 5,397 131 4,920 Servcorp Locations 130 5,000 Servcorp Offices 4,275 3,837 125 4,000 122 120 3,000 117 115 2,000 110 1,000 105 0 FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17 9
Slide 10: 5 year free cash flows
5 year free cash flows Free cash flow up 77% since FY 13 15% pre-tax CAGR Last 3 years generated over $206m in pre-tax free cash flow Current cash balance up ~$20m from FY 13 Cash flow from Operations $80 $70 $60 $50 A$m $40 72.9 67.9 66.0 $30 59.9 60.6 54.4 44.8 $20 37.2 40.2 27.1 $10 $0 FY
Slide 11: Shareholder value
Shareholder value FY 17 Paid Total dividends up 73% since FY 13 (15.00 cps to 26.00 cps) Servcorp share price up 38% since November 2013 Dividends paid (cents per share) Final dividend paid of 13.00 cps, 50% franked 30.0 Total dividends paid of 26.00 cps (50% 25.0 franked), up 18% on FY 16 2
Slide 12: 1st Quarter FY18
1st Quarter FY 18 Excluding the USA, 1Q 18 results are generally in line with forecasts The USA continues to be Management’s primary focus While the USA 1Q 18 result is disappointing, Serviced and Virtual Office sales have improved from 30 June 2017. Management is confident this forward trend
Slide 13: FY18 Guidance
FY 18 Guidance Management reconfirms NPBT guidance for FY 18 of between $45m and $55mA Servcorp’s future will be reflected in 4Q 18 result when we expect to have delivered improved occupancy and margins and see benefits from our industry-leading CoWorking product A. Subject to currencies remaini