Servcorp Limited · ASX:SRV
Servcorp — Shareholder Meeting (November 2009)
23 slides from Servcorp's shareholder meeting presentation, Nov 18, 2009
Slide 1: Servcorp Limited Annual General Meeting 2009 cover letter
18 November 2009 The Manager Company Announcements Office Australian Securities Exchange By Electronic Lodgement Dear Sir Servcorp Limited Annual General Meeting 2009 Servcorp Limited (SRV) will today address its Members at its Annual General Meeting to be held at the Wilarra Room, Level 2 The Grace
Slide 2: Servcorp Limited Annual General Meeting
For personal use only Servcorp Limited Annual General Meeting Wednesday 18 November 2009
Slide 3: Servcorp business highlights
Servcorp business highlights For personal use only Servcorp is a market leader in the Serviced Office business and has a track record of global growth, with strong cash flow generation and return on capital from existing business A market leading Serviced Office business Track record of successf
Slide 4: The transformation of Servcorp
The transformation of Servcorp Through 30 years of investment, Servcorp has built a proprietary IT platform For personal use only When it was established in 1978 Servcorp’s offering was premium quality Serviced Office space To improve the client service offering, Servcorp developed proprietary I
Slide 5: 2008/2009 Operational Highlights
2008/2009 Operational Highlights For personal use only Consolidation – slowed expansion/shut non-profit makers Virtual Office success Testing new Virtual Office business model Middle East success Focusing on the resilience of our business model Looked at opportunities for growth in new a
Slide 6: Servcorp today
Servcorp today Diversity of exposure Return on capital1 For personal use only 2009A floors by region 2008A and 2009A (%) 3%3% 3% 3% 100% 6% Qatar Bahrain 90% ROC (%) Australia New Zealand 80% 76% 28% 70% Singapore China 70% 26% Hong Kong Malaysia 60% Thailand Japan 50% 4% France Belgium 2008A 2009A
Slide 7: 2008/2009 financial performance
2008/2009 financial performance For personal use only Financial performance Events post balance date A$ million; YE 30 A number of events have occurred since 30 June 2009 June 2008A 2009A Capital raising of $77million (net) for expansion Revenue 190.1 228.6 Servcorp has paid a final dividend o
Slide 8: We have the Platform
We have the Platform For personal use only The Network Virtual Office Serviced Office Physical and Virtual Targeting SOHO’s/SME’s Primarily targeting growth Potentially every home business SME’s or branch offices of Currently over 60 locations MNC’s All interconnected, all the same The
Slide 9: We have the competitive advantage
We have the competitive advantage For personal use only Scalable global network Proprietary VoIP software Purpose built to provide Virtual Developed in-house by Servcorp’s Customer Office service R&D engineers facing Tested—10 years since its initial Enables key customer functionality advant
Slide 10: We have the Model
We have the Model The Servcorp technology platform allows the Virtual Office to be expanded off a For personal use only smaller fixed cost infrastructure resulting in lower capital outlay, cheaper cost structure and potentially higher returns Target Virtual Office versus Serviced Potential EBIT marg
Slide 11: We know the Model works
We know the Model works There are more than 14 existing Servcorp locations that have over 500 virtual For personal use only packages Virtual Office cost structure locations Ariake June 20091 June 20081 Growth (pcp) include Paris, Tokyo (Ariake), Hong Kong, Revenue (JPY) 6,558,369 3,854,053 70% Osa
Slide 12: The market is right – Example for the USA
The market is right – Example 1 for the USA For personal use only 10 GEN0190n.ppt 10
Slide 13: The window is now - Example for the USA
The window is now - Example 2 for the USA For personal use only 11 GEN0190n.ppt 11
Slide 14: We have the management
We have the management For personal use only Key management Other senior management Alf Moufarrige, Chief Executive Officer Susie Martin – Global leader in the Serviced Office industry, with 30 – General Manager, Australia and years of experience New Zealand – Responsible for Servcorp’s profitab
Slide 15: We can scale the management
We can scale the management For personal use only General Manager, Virtual Office General Manager, Saudi Arabia, Qatar and Kuwait – Barry Barakat – ex Macquarie Strong USA Team in place – Steve Haskin – 20 years experience in property investment banking – Jennifer Goodwyn – ex HQ, Kinko's St
Slide 16: We've identified the expansion targets
We’ve identified the expansion targets Servcorp’s target is to open at least 100 additional floors over the next three For personal use only to four years Virtual Office roll-out strategy Geographic presence1 Servcorp intends to accelerate its floor expansion targeting at least 100 new floors over
Slide 17: Quick look at locations on the go
Quick look at locations on the go For personal use only X = Virtual “Pods” Opening Date Location Opening Date Location June 2009 JAPAN February 2010 MIDDLE EAST Shinjuku X Beirut, Lebanon X September 2009 ABU DHABI INDIA Al Mamoura Gurgeon X December 2009 SAUDI ARABIA HONG KONG Jeddah Two IFC JAPAN
Slide 18: Quick look at locations on the go
Quick look at locations on the go Opening Date Location Opening Date Location April 2010 AUSTRALIA June 2010 AUSTRALIA Melbourne CBD X St Kilda, Melbourne X For personal use only Bondi Junction, Sydney X INDONESIA Parramatta, Sydney X Jakarta X JAPAN PHILLIPINES Yokohama X Manila X May 2010 AUSTRALI
Slide 19: We are fully funded
We are fully funded We’ve raised $77 million (net) for the expansion plan For personal use only The capital raising along with existing cash reserves, will be used to fund the expansion Use of proceeds Along with existing available cash reserves1, fund the new floor roll-out strategy including – s
Slide 20: Outlook for 2009/2010
Outlook for 2009/2010 For personal use only As foreshadowed, trading has been very difficult in the first quarter for the Mature Serviced Office Business and we expect this to continue for the second quarter Mature Serviced Office Business revenue is down 19% for Q1 2010 compared to Q1 2009 Ma
Slide 21: Outlook for 2009/2010
Outlook for 2009/2010 For personal use only Transition year: moving from a Serviced Office business to a global business infrastructure and technology services provider Virtual Office – Automation has led to strong growth in Australia and Japan New model focus – automated, small locations, mas
Slide 22: Outlook for 2009/2010
Outlook for 2009/2010 For personal use only As expected losses on immature floors will be significantly higher than previous years due to the aggressive expansion Target of 35 to 45 new floors by December 2010 with particular emphasis on new Virtual Office model Target of 29,000 Virtual packag
Slide 23: 2009/2010 Anticipated Dividend
2009/2010 Anticipated Dividend For personal use only – reflecting our confidence in the business April 2010 5 cents per share fully franked ordinary dividend October 2010 5 cents per share fully franked ordinary dividend Subject to changes in market conditions affecting the operating business