Slide 1: Servcorp Limited 1H20 Results Presentation
For personal use only Servcorp Limited 1H20 Results Presentation Tuesday 25 February 2020 Presented by: Mr. Alf Moufarrige, Chief Executive Officer 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: For personal use only
For personal use only 3
Slide 4: Headlines
Headlines Resilient 1H20 performance with all key metrics up on pcp For personal use only Revenue and other income up 9% to $178.8m Underlying NPBT up 47% to $21.0m Free Cash up 20% to $36.7m Occupancy up 3 percentage points to 76% Strong balance sheet Cash balances at 31 December 2019
Slide 5: 1H20 Result
1H20 Result For personal use only Underlying NPBT $21.0m, up 47% UnderlyingA 1H20 v Statutory 1H20 1H19 1H19 1H20 1H19 A$m A$m Revenue and other income 176.6 161.6 9% 178.8 164.2 Operating expenses (155.6) (147.4) 6% (159.9) (170.3) Net profit / (loss) before tax 21.0 14.2 47% 18.9 (6.1) Income tax
Slide 6: Statutory Position
Statutory Position Balance sheet and Cash flow For personal use only Dec-19 Jun-19 1H20 1H19 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 74.6 65.1 Opening cash 1 July 65.1 93.4 Trade receivables 43.9 46.4 A A Net operating cash inflows 100.7 23.6 PP&E 502.7 145.6 Net investing cash flows (5.9) (35.
Slide 7: Performance
Performance Satisfactory underlying operating performance For personal use only We produced a record revenue of $177.5m, up 9% on 1H19 1H20 Underlying NPBT of $21.0m (up 47% on 1H19) was underpinned by a strong EME result, a solid contribution from parts of North Asia offset by USA losses 7
Slide 8: Positioning
Positioning Healthy cash flow & liquidity For personal use only Free Cash for 1H20 is $36.7m, up $6.0m on 1H19 of $30.7m 8
Slide 9: Servcorp Capacity: Global Footprint
Servcorp Capacity For personal use only Global Footprint Our global footprint encompasses 145 floors, in 52 cities across 22 countries During 1H20 we consolidated several locations closing floors in Auckland, Bangkok, Brisbane, Chengdu and Jakarta Two new floors are scheduled to open in Manilla
Slide 10: Servcorp Capacity: Coworking
Servcorp Capacity For personal use only Coworking Our investment in reshaping our portfolio to modernise current fit-outs and enhance our coworking offering is mostly complete To date we have completed 90 of the previously identified locations and are committed to complete a further 5 locations
Slide 11: Segment Performance
Segment Performance For personal use only Global overview Segment Profit / Like for Like Revenue Margin Segment (Loss) Cash EarningsB A$m A$m A$m % 1H20 1H19 1H20 1H19 1H20 1H19 1H20 1H19 ANZ & SEA 43.8 45.0 9.9 4.0 9.0 9.1 23% 9% North Asia 66.4 58.9 10.3 13.4 13.2 15.2 15% 23% EMEA 45.8 37.7 5.4 0
Slide 12: Operating Summary by Segment: ANZSEA
Operating Summary by Segment For personal use only ANZ and South East Asia (ANZSEA) While revenue was down 3% on 1H19, segment performance in ANZ / SEA increased by 148% driven largely by continued improvement in SEA generally Like for Like Cash EarningsA decreased 2% for the same period owing l
Slide 13: Operating Summary by Segment: North Asia
Operating Summary by Segment (cont’d) For personal use only North Asia North Asia as a whole produced a good result Revenue for 1H20 was up 13% to $66.4m compared to 1H19 Like for Like Cash EarningsA decreased 13% for the same period driven by the poor performance of Hong Kong and Thailand W
Slide 14: Operating Summary by Segment: Europe and Middle East
Operating Summary by Segment For personal use only (cont’d) Europe and Middle East (EME) Like for Like floors in the EME segment produced a significantly improved result in 1H20 largely driven by solid performances of Saudi Arabia and UAE Revenue was up 21% in 1H20 and Like for Like Cash Earning
Slide 15: Operating Summary by Segment: USA
Operating Summary by Segment (cont’d) For personal use only USA The USA continues to produce losses. Like for Like Cash EarningsA worsened from negative $0.6m in 1H19 to negative $3.3m in 1H20 While the USA had some good intermittent sales months during calendar year 2019, its performance has de
Slide 16: Dividend
Dividend For personal use only Interim FY20 dividend Interim dividend payable of 11.0 cps (up 10% on previous forecast), 25% franked, payable on 2 April 2020 Expected FY20 dividendA Final dividend of 11.0 cps is expected to be paid for FY20 Franking levels are uncertain A. Subject to currencie
Slide 17: AASB16 – Leases Key Messages
AASB16 – Leases Key Messages For personal use only No impact on our business No Impact on Our economics Cash How the business is managed Significant impact on financial reporting Leases brought on to the balance sheet Positive NPBT impact over time; not material in FY20 Supplementary
Slide 18: Outlook
Outlook FY20 guidanceA reaffirmed For personal use only Notwithstanding the losses incurred in the USA, our first half performance has been strong. All key metrics are improved on the prior corresponding period including occupancy, operating margins, NPAT and Free Cash. Importantly the trend is cont
Slide 19: Questions & Answers
For personal use only 19 & ANSWERS QUESTIONS