Slide 1: Half Year Results Presentation announcement 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 23 February 2011 The Manager Company Announcements Office Australian Stock Exchange Limited By electronic lodgement Dear Sir Servcorp Limite
Slide 2: Servcorp Limited Analyst Presentation
For personal use only Servcorp Limited Analyst Presentation Presented by Alf Moufarrige, CEO Taine Moufarrige, Executive Director Wednesday 23 February 2011 1
Slide 3: Operational Highlights H1 2011
Operational Highlights H1 2011 Mature floor NPBT of $13.32 million (in line with guidance) For personal use only Immature floor loss of $13.34 million NPBT of $0.12 million Virtual Office package growth of 7% Cash balance (unencumbered) of $97.00 million as at 31 December 2010 Cash balan
Slide 4: Financial Results – H1 2011
Financial Results – H1 2011 Six Months Ended Six Months Ended Constant For personal use only 31 December 2010 31 December 2009 % Currency % $AUD $AUD 000’s 000’s Revenue 89,360 84,034 6% 8% Mature Floor Net Profit Before Tax 13,318 12,045 11% Total Immature Floor Loss (13,342) (8,966) Office Squared
Slide 5: Mature Business
Mature Business Trading conditions were very difficult in Q1 2011 For personal use only Revenues and margins improved in Q2 2011 in several locations Two large traditional floors became mature and are performing strongly Abu Dhabi, UAE 2IFC, Hong Kong Average occupancy increased to 78% for
Slide 6: Virtual Office Business
Virtual Office Business For personal use only Continued growth of Virtual Office – package growth of 7% during H1 2011 (annualised 14%) Virtual Office revenue increased by 16% for H1 2011 Virtual Office revenue increased by 19% on a constant currency basis compared to H1 2010 Virtual Office
Slide 7: Australia & New Zealand
Around The World 2010 - 2011 AUSTRALIA & NEW ZEALAND For personal use only Australia and New Zealand have continued to perform strongly Revenues and margins have continued to increase in most capital cities Virtual Office memberships increased 1 floor closed in H1 2011 A new floor opened i
Slide 8: Japan
Around The World 2010 - 2011 JAPAN For personal use only The Japanese Serviced Office market continues to be competitive and very difficult Virtual Office package memberships continued to grow Given the broader economic climate Management are satisfied with the performance 1.5 floors closed
Slide 9: Greater China
Around The World 2010 - 2011 GREATER CHINA For personal use only Greater China, in particular Hong Kong, were significantly impacted by the global financial crisis Business confidence has recovered substantially Now seeing an improvement in revenues and margins Our large landmark floor in 2I
Slide 10: Southeast Asia
Around The World 2010 - 2011 SOUTHEAST ASIA For personal use only Southeast Asia was significantly impacted by the global financial crisis Markets in Singapore and Kuala Lumpur are now recovering The Serviced Office market in Bangkok continues to be stable 1 floor was opened in the new marke
Slide 11: Middle East
Around The World 2010 - 2011 MIDDLE EAST For personal use only Abu Dhabi became mature in H1 2011 and is now making profits Dubai has softened considerably The performance of Doha remains challenging Recent civil unrest in Bahrain may have an adverse impact on its results 3 new floors were
Slide 12: Europe
Around The World 2010 - 2011 EUROPE For personal use only European business sentiment continues to be depressed The Serviced Office market continues to be difficult 1 traditional floor in London was immature during H1 2011 Virtual Office V.I.P. floors will open in London and Brussels during
Slide 13: USA
Around The World 2010 - 2011 USA For personal use only The greatest opportunity and difficulties have been experienced in the USA This is the best opportunity Servcorp has ever had to establish a meaningful presence in the USA Rents have been negotiated at or near the bottom of the market Op
Slide 14: India Franchise / Office Squared
Around The World 2010 - 2011 INDIA FRANCHISE For personal use only The Indian market has recovered from the effects of the global financial crisis Servcorp has no direct capital exposure to the Indian market Servcorp’s Franchisee is now seeing an improvement in revenues and profitability See
Slide 15: Global Expansion – Update
Global Expansion – Update The major expansion across multiple regions has been very challenging Expansion Update by Region New Floors Open For personal use only Disappointed by the level of recovery experienced, especially in the USA Overall we have experienced costs in line with expansion bud
Slide 16: Global Expansion – Update Continued
Global Expansion – Update Continued Expect to open a total of 43 floors in FY 2011 (12 more than originally projected) For personal use only Expect to have 56 floors open in 26 new cities in 7 new countries as part of this expansion programme by 30 June 2011 In 2012 we will consolidate operati
Slide 17: FY 2011 Revised Outlook
FY 2011 Revised Outlook As advised at Servcorp’s AGM trading conditions were showing early signs of For personal use only improvement in Q2 2011 It is anticipated that the improvement in revenues and margins will continue into H2 2011 FY 2011 was always intended to be a major construction peri
Slide 18: FY 2011 Revised Outlook Continued
FY 2011 Revised Outlook Continued Europe and the USA are recovering at a slower pace than originally anticipated. As a result our immature floors in these regions have been adversely impacted For personal use only We have revised likely outcomes for the balance of FY 2011 which has resulted in a
Slide 19: FY 2011 Revised Outlook Continued
FY 2011 Revised Outlook Continued Management continue to have confidence in the Virtual Office V.I.P. business For personal use only model We have built the floors and have a strong global presence We are satisfied with the overall progress of new floor rollouts Our focus is solely on sales,
Slide 20: Dividend FY 2011
Dividend FY 2011 Interim Dividend (Declared) - 5.00 cents per share (fully franked) For personal use only Final Dividend (Anticipated) - 5.00 cents per share (subject to currencies remaining constant and the global financial market remaining stable) Dividend Outlook Given our expected improvem