Slide 1: FY 2019 Results Presentation
For personal use only Servcorp Limited FY 2019 Results Presentation Tuesday 27 August 2019 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: For personal use only
*EOMMUNITY H TO WORK WIT Der TEAM 1 (e) > —¢ m@SERVCORP
Slide 4: Headlines
Headlines A strong performance in 2H19 For personal use only 2H19 NPBT of $18.4m exceeding 2H19 NPBT guidance of between $14.0m and $18.0m 2H19 new floor operating losses of $3.5m in line with $4.0m new floor loss guidance FY19 net operating cash flows exceeding $50.0m FY19 Free Cash $62.1
Slide 5: FY19 Result
FY19 Result For personal use only Underlying NPBT $32.0m, down $5.9m Underlying Underlying FY19 v Statutory Statutory FY19 FY18 FY18 FY19 FY18 A$m A$m A$m A$m Revenue and other income 337.2 312.5 8% 337.2 312.5 Operating expenses (305.2)A (274.6) 11% (324.7) (280.5) Net profit before tax 32.0 37.9 1
Slide 6: Statutory Position: Balance sheet and Cash flow
Statutory Position Balance sheet and Cash flow For personal use only Jun-19 Jun-18 FY19 FY18 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 65.1 93.4 Opening cash 1 July 93.5 104.4 Trade receivables 46.4 43.9 Net operating cash inflows 51.0 50.1 PP&E 145.6 134.1 Net investing cash flows (52.1) (30.3)
Slide 7: Performance
Performance Satisfactory underlying operating performance For personal use only Revenue Underlying NPBT $400.0 $60.0 $328.6 $329.6 $337.2 $312.5 $48.8 $48.2 $320.0 $277.4 $45.0 $41.2 $37.9 $240.0 $32.0 A$m A$m $30.0 $160.0 $15.0 $80.0 $0.0 $0.0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY1
Slide 8: Positioning
Positioning Healthy cash flow & liquidity For personal use only Operating cash flow $51.0m, up 1.9% compared to FY18 Current cash balances in excess of $80m 8
Slide 9: Servcorp Capacity: Global Footprint
Servcorp Capacity For personal use only Global Footprint During the year we opened new floors in Berlin, Osaka, Riyadh and Tokyo and expanded existing capacity in our Mayfair and Canary Wharf locations in London In addition, we closed locations in Abu Dhabi, Auckland, Perth, Melbourne, Singapore
Slide 10: Servcorp Capacity: Coworking
Servcorp Capacity For personal use only Coworking Our investment in reshaping our portfolio to modernise current fit-outs and enhance our coworking offering is mostly complete. The flexible coworking space category continues to sell; we are approximately 3,000 coworking packages ahead compared to
Slide 11: Segment Performance
Segment Performance For personal use only Global overview Segment Profit / Like for Like Revenue Margin Segment (Loss) EBITDA A$m A$m A$m % FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 ANZ & SEA 90.7 88.8 7.1 7.2 16.8 14.7 8% 8% North Asia 118.5 108.7 20.6 24.0 27.0 26.1 17% 22% EME 85.2 78.6 7.8 10.0 17
Slide 12: Operating Summary by Segment: ANZSEA
For personal use only Operating Summary by Segment ANZ and South East Asia (ANZSEA) Performance in ANZSEA was relatively flat year on year ANZSEA impaired $2.6m of leasehold improvements relating to Indonesia and Singapore during the year 12
Slide 13: Operating Summary by Segment: North Asia
For personal use only Operating Summary by Segment (cont’d) North Asia North Asia as a whole produced a solid result with the drag on profit attributed to Hong Kong In FY19 China impaired $1.0m of leasehold improvements 13
Slide 14: Operating Summary by Segment: Europe and Middle East
Operating Summary by Segment (cont’d) For personal use only Europe and Middle East (EME) Like for Like floors in the EME segment produced a lower result in FY19 due to poor performances of France and Belgium, compounded by new floors opening in Saudi Arabia and Germany EME impaired $3.7m of leas
Slide 15: Operating Summary by Segment: USA
Operating Summary by Segment (cont’d) For personal use only USA FY19 Like for Like negative EBITDA improved $2.0m from negative $3.5m to negative $1.5m, reflecting some of the strategies that have been implemented In FY19 the USA impaired $10.5m of leasehold improvements relating to New York Cit
Slide 16: Dividend
Dividend For personal use only Final FY19 dividend Final dividend payable of 10.0 cps, 60% franked Total FY19 dividends payable of 23.0cps, 48.7% franked Forecast FY20 dividendA Dividends paid (cents per share) Dividends of 20.0 cps (10.0 30.0 cps each half) are anticipated 25.0 to be paid for
Slide 17: IFRS Key Messages
IFRS 16 Key Messages No impact on our business For personal use only No Impact on Our economics Cash How the business is managed Significant impact on financial reporting Leases brought on to the balance sheet Net profit before tax impact over time; not material in FY20 Supplementary
Slide 18: Outlook
Outlook FY20 guidance reaffirmed A For personal use only Servcorp’s FY20 NPBT guidance is between $36.0 million and $40.0 million. This represents our view that the overall business has stabilised, and while certain areas remain weak, others are outperforming. We also confirm FY20 Free Cash is expec
Slide 19: Questions and Answers
For personal use only 19 & ANSWERS QUESTIONS