Slide 1: Half Year Results Presentation cover letter
Servcorp Limited ABN 97 089 222 506 Level 12 MLC Centre 19-29 Martin Place Sydney NSW 2000 Australia T | +61 2 9231 7616 F | +61 29231 7665 W | servcorp.com.au 21 February 2012 The Manager ASX Market Announcements Australian Securities Exchange By electronic lodgement Dear Sir Servcorp Limited (SRV)
Slide 2: Analyst Presentation Six Months ended 31 December 2011
For personal use only Servcorp Limited Presented by: Analyst Presentation Six Months ended 31 December 2011 Alf Moufarrige, C.E.O. Marcus Moufarrige, C.O.O. Tuesday 21 February 2012 1
Slide 3: Operational Highlights – H1 FY 2012
Operational Highlights – H1 FY 2012 Total Floors Open Mature floor NPBT up 38% to $18.52M – in at 31 December 2011 = 119 For personal use only line with guidance USA 21 Immature floor loss down 22% to $10.36M - in line with guidance Europe 9 NPBT of $8.16M, up from $0.12M Greater China 10 Operat
Slide 4: Financial Results – Profit & Loss Highlights
Financial Results – H1 FY 2012 Profit & Loss - Highlights For personal use only H1 FY 2012 H1 FY 2011 Constant % $AUD 000’s $AUD 000’s Currency % Total revenue 99,381 89,360 11% 16% Mature floor net profit before tax 18,523 13,465 38% Immature floor loss (10,359) (13,342) (22%) Total net profit befo
Slide 5: Financial Results – Cash flow Highlights
Financial Results – H1 FY 2012 Cash flow Highlights For personal use only H1 FY 2012 H1 FY 2011 % $AUD 000’s $AUD 000’s Net operating cash flows 15,187 8,853 72% Payments for property, plant & equipment (6,723) (18,934) Dividends paid (4,922) (4,922) Other cash flow items 1,063 1,720 Increase / (dec
Slide 6: Financial Results – Balance Sheet Highlights
Financial Results – H1 FY 2012 Balance Sheet - Highlights For personal use only As at As at 31 December 2011 30 June 2011 % $AUD 000’s $AUD 000’s Cash balances 105,706 99,993 6% Cash balance (unencumbered) 96,996 91,270 Total Net Assets 198,460 192,612 3% Net Tangible Assets (per share) $1.87 $1.81
Slide 7: Mature Business – Revenues and margins improved
Mature Business – H1 FY 2012 Revenues and margins improved across most geographic segments For personal use only This is despite the strength of the AUD throughout the period During the half the AUD increased by an average of: 11% against the USD 5% against the EUR 3% against the JPY Cost cut
Slide 8: Immature Business
Immature Business – H1 FY 2012 Immature Floors as at Immature floor revenue continues to 31 December 2011 = 47 For personal use only increase modestly each month USA 21 Management satisfied with the progress of the immature floor portfolio Europe 2 47 floors were immature at 31 December 2011 Grea
Slide 9: Global Expansion – Update
Global Expansion – Update Current strategy for FY 2012 is to: For personal use only Slow the pace of expansion Consolidate operations in new and existing markets Original intention was to open no more than 15 floors in FY 2012 Now opening a total of 9 floors due to: Continued volatility in glo
Slide 10: Global Expansion – Update: Total Floor Expansion
Global Expansion – Update Total Floor Expansion 36 Months ending 30 June 2012 For personal use only 25 Floors opened in the 24 months to 30 June 2011 = 53 20 Floors to Open FY 2012 = 9 Total Floors = 62 Number of Floors 15 2 21 10 2 4 5 10 7 6 1 4 2 3 0 Australia & New Japan Southeast Asia Middle Ea
Slide 11: Operating Summary by Region – Australia & New Zealand, Japan
Operating Summary by Region H1 FY 2012 AUSTRALIA & NEW ZEALAND Mature floors For personal use only Performance of Australia and New Zealand continues to be strong Immature floors One new floor opened in Brisbane Now 8 immature floors in the region JAPAN Mature floors Fukushima earthquake in Marc
Slide 12: Operating Summary by Region – Greater China, Southeast Asia
Operating Summary by Region H1 FY 2012 GREATER CHINA Mature floors For personal use only Growth continued throughout the half One floor closed in Hangzhou Immature floors Two floors were opened in Shanghai and Guangzhou Now 4 immature floors in Greater China SOUTHEAST ASIA Mature floors Southea
Slide 13: Operating Summary by Region – Middle East
Operating Summary by Region H1 FY 2012 MIDDLE EAST For personal use only Mature floors Middle Eastern region continues to perform strongly Performance of Dubai and Abu Dhabi continues to be solid Doha has seen a marked increase in profitability and margins A floor in Jeddah became mature during
Slide 14: Operating Summary by Region – Europe
Operating Summary by Region H1 FY 2012 EUROPE For personal use only Mature floors Serviced Office market in Paris continues to be difficult Margins in both London and Brussels increased during the half One floor in London became mature in the half and is now making profits Immature floors Two fl
Slide 15: Operating Summary by Region – USA
Operating Summary by Region H1 FY 2012 USA For personal use only Immature floors Servcorp continues to gain sales traction in the USA Operating revenue continues to increase on a monthly basis There is risk that: The economy of the USA will not recover as quickly as anticipated; Aggressive comp
Slide 16: FY 2012 Outlook
FY 2012 Outlook Management continues to remain cautiously optimistic about the outlook for Servcorp For personal use only Revenue and margins expected to hold at current level for the remainder of FY 2012 Management will focus on; Consolidating the immature business Increasing occupancy Increa
Slide 17: Mature & Immature Net Profit Before Tax FY2002–FY2012
Servcorp Limited Mature & Immature Net Profit Before Tax 10 Years ended FY 2011 & Forecast FY 2012 $60.0 $54.4 For personal use only $52.8 $50.0 $42.9 $40.0 $38.3 $37.0 $31.2 $30.0 $28.2 $25.1 $AUD in Millions $20.0 $14.9 $10.0 $4.9 $6.1 $0.0 ($0.8) ($1.3) ($3.1) ($5.1) ($4.7) ($10.0) ($8.2) ($7.1)
Slide 18: Dividend FY 2012
Dividend FY 2012 For personal use only Interim Dividend (declared) – 7.5 cents per share (50% franked) Final Dividend (anticipated) – 7.5 cents per share (expected to be 50% franked) [This payment is subject to currencies remaining constant, global financial markets remaining stable and no unfores