Slide 1: FY 2018 Interim Results Presentation
For personal use only Servcorp Limited FY 2018 Interim Results Presentation Thursday 22 February 2018 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
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Slide 4: Overview
Overview For personal use only Satisfactory operating performance in a rapidly evolving market Operating cash flow up 13.1% to $19.9m Operating profit up 7.7% on 1H17 NPBT $19.2, down 8.7% on 1H17 Unbudgeted expenses incurred in 1H18 of $1.9m relating to new strategic initiatives Operati
Slide 5: Overview (cont'd)
Overview (cont’d) For personal use only Significant strategic initiatives under way Directors believe there is an unprecedented opportunity to take advantage of the tremendous growth and transformation in today’s global workspace industry. As part of our investment into strategic initiatives, the
Slide 6: 1H18 Result
1H18 Result For personal use only Underlying NPAT $17.5m, down $0.6m Underlying Statutory Statutory 1H18 v Constant 1H18 1H18 1H17 1H17 FX A$m A$m A$m Revenue 157.0 157.0 168.0 6.5% 3.2% Operating expenses (135.9)A (137.8) (147.0) 6.2% Net profit before tax 21.1 19.2 21.0 8.7% Income tax expense (3.
Slide 7: Statutory Position: Balance sheet and Cash flow
Statutory Position Balance sheet and Cash flow For personal use only Dec-17 Jun-17 1H18 1H17 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 109.9 104.4 Opening cash 1 July 104.4 95.8 Trade receivables 36.6 41.7 Net operating cash inflows 19.9 17.6 PP&E 120.6 125.8 Net investing cash flows 0.2 (2.7) Go
Slide 8: Performance
Performance Satisfactory underlying operating performance For personal use only Operating cash flow up 13.1% to $19.9m Operating profit up 7.7% on 1H17 NPBT $19.2m, down 8.7% on 1H17 Unbudgeted expenses incurred in 1H18 of $1.9m relating to new strategic initiatives Operating NPAT of $15.6m
Slide 9: Positioning
Positioning For personal use only Healthy cash flow & liquidity Operating cash flow up 13.1% to $19.9m Cash balances of $109.9m, up 5.3% on 30 June 2017 9
Slide 10: Servcorp Capacity
Servcorp Capacity For personal use only Servcorp Coworking As announced at our AGM in November 2017, we have started investing in reshaping the portfolio to modernise current fit-outs and to embellish their ecosystem to incorporate coworking as an integral piece. We have completed 26 locations to
Slide 11: Coworking under construction
Coworking under construction For personal use only 11
Slide 12: Coworking under construction (cont'd)
Coworking under construction (cont’d) For personal use only 12
Slide 13: Segment Performance
Segment Performance For personal use only Global overview Revenue Revenue Profit / (Loss) Margin Growth Segment A$m % A$m % Constant 1H18 1H17 Actual FX 1H18 1H17 1H18 1H17 Australia, New Zealand & 45.2 43.8 3% 1.9 1.0 4% 2% South East Asia North Asia 52.4 54.4 (4%) 13.8 10.3 26% 19% Europe & Middle
Slide 14: Operating Summary by Segment: ANZSEA
For personal use only Operating Summary by Segment ANZ and South East Asia (ANZSEA) NPBT performance in ANZ / SEA increased by 90.0%. Singapore and Indonesia continue to underperform. The balance of the region is healthy. 14
Slide 15: Operating Summary by Segment: North Asia
For personal use only Operating Summary by Segment (cont’d) North Asia North Asia as a whole produced an outstanding result with NPBT improving by 34.0% The decline in revenue period on period is reflective of a strong Australian dollar. 15
Slide 16: Operating Summary by Segment: Europe and Middle East
For personal use only Operating Summary by Segment (cont’d) Europe and Middle East (EME) Like for Like floors in the Europe and Middle East segment produced a weaker result in 1H18 mainly due to tough markets in Saudi Arabia. However after stronger sales to date in 3Q18 we expect a strong 2H18 for
Slide 17: Operating Summary by Segment: USA
For personal use only Operating Summary by Segment (cont’d) USA Notwithstanding acceptable performances across a range of locations, the USA underperformed Following a USA Federal corporate tax rate reduction in December 2017 from 35% to 21%, and a review of the carried forward loss recoverabili
Slide 18: Dividend
Dividend For personal use only Interim FY18 dividend Interim dividend payable of 13.00 cps, 7.5% franked Final FY18 dividendA Final dividend of 13.00 cps is expected to be paid for FY18. Franking levels are uncertain. A. Subject to currencies remaining constant, global financial markets remainin
Slide 19: Outlook
Outlook FY18 guidanceA reaffirmed For personal use only As we reported with our 2017 results, the flexible workspace industry is undergoing a period of unprecedented transition and the global market for shared workspaces is growing rapidly. To address this opportunity, during the last six months we
Slide 20: Questions & Answers
For personal use only 20 & ANSWERS QUESTIONS