Slide 1: Annual General Meeting 2010 cover letter
Servcorp Limited ABN 97 089 222 506 Level 12 MLC Centre 19-29 Martin Place Sydney NSW 2000 Australia T | +612 9231 7616 F | +61 2 9231 7665 W | servcorp.com.au 17 November 2010 The Manager Company Announcements Office Australian Securities Exchange By Electronic Lodgement Dear Sir Servcorp Limited A
Slide 2: Servcorp Limited Annual General Meeting Presentation
For personal use only Servcorp Limited Annual General Meeting Presentation Alf Moufarrige, CEO , 2010 Wednesday 17 November 2010 1
Slide 3: Operational Highlights 2009 / 2010
Operational Highlights 2009 / 2010 For personal use only Ø Mature floor NPBT of $25.13 million for FY 2010 (in line with forecast) Ø NPBT of $2.88 million for FY 2010 Total Floors as at Ø V.I.P. package growth of 20% for FY 2010 30 June 2010 = 77 Ø V.I.P. revenue growth of 9% in constant currency fo
Slide 4: Financial Results - FY 2010
Financial Results - FY 2010 For personal use only FY 2010 FY 2009 % Constant % $000's $000's Currency Revenue 168,837 228,646 (26%) (19%) Mature Floor Net Profit Before Tax 25,127 54,360 (54%) Immature Floor Expansion Costs (20,103) (2,942) Office Squared Losses (2,149) (4,143) 48% Net Profit Before
Slide 5: Serviced Office Business
Serviced Office Business For personal use only Ø Trading conditions in the Serviced Office Business were very difficult in FY 2010: Ø Depressed global business sentiment Ø Decrease in demand for Serviced Offices Ø Both occupancy and office pricing have been impacted Ø Average occupancy has softened
Slide 6: Virtual Office (V.I.P.) Business
Virtual Office (V.I.P.) Business For personal use only Ø Continued growth of V.I.P. – package growth of 20% 20% during FY 2010 Ø V.I.P. revenue decreased by 1% for FY 2010 Ø V.I.P. revenue increased by 9% on a constant currency basis compared to FY 2009 4 4
Slide 7: Around The World 2009 – 2010: Australia, New Zealand, Japan
Around The World 2009 – 2010 For personal use only AUSTRALIA & NEW ZEALAND Ø Not impacted to the same extent as other markets by the global financial crisis Ø One floor in Sydney closed during FY 2010 Ø Opened 3 floors since 1 July 2010 in this market Ø 5 additional floors are expected to open in FY
Slide 8: Around The World: Greater China and Southeast Asia
Around The World 2009 – 2010 GREATER CHINA For personal use only Ø The Hong Kong market was significantly impacted by the global financial crisis but has now substantially recovered Ø Opened four floors in Greater China in FY 2010 Ø The lease in our landmark location in 2IFC was signed at the bottom
Slide 9: Around The World: Middle East and India
Around The World 2009 – 2010 For personal use only MIDDLE EAST Ø The property market in Dubai has suffered a material downturn however we did re- re-negotiate our leases in this city at the bottom of the market which ensures that Servcorp remains profitable in this city Ø Serviced Office markets in
Slide 10: Around The World: Europe and USA
Around The World 2009 – 2010 For personal use only EUROPE Ø The European market continues to be very difficult Ø The Paris location continues to be impacted by pricing pressures but we are now operating at cash flow breakeven in this city Ø The Brussels location has now stabilized Ø A floor opened i
Slide 11: Global Expansion – Update
Global Expansion – Update Floors open at 30 June 2010 & Floors expected to open during FY 2011 For personal use only Ø New floor openings are progressing well Ø Management continue to have confidence in the V.I.P. business model USA 2 19 Ø 22 floors have already opened since 1 July 2010 Europe 7 2 Ø
Slide 12: Global Expansion – Update
Global Expansion – Update Ø Current unencumbered cash balances remain strong at $102 million For personal use only Ø Take up of V.I.P. packages has been somewhat slower than originally anticipated as the opening dates of the majority of the floors in the USA are between three and six months behind s
Slide 13: 2010 / 2011 Outlook
2010 / 2011 Outlook Ø Servcorp confirms forecast mature floor net profit before tax guidance for FY 2011 of For personal use only $30 million Ø $13 million for H1 2011 Ø $17 million for H2 2011 (This forecast assumes currencies remain constant, global financial markets remain stable and no unforesee
Slide 14: Dividend FY 2010 and Outlook FY 2011
Dividend FY 2010 For personal use only Ø March 2010 interim dividend of 5.00 cps (fully franked) paid Ø October 2010 final dividend of 5.00 cps (fully franked) paid Dividend FY 2011 - Outlook Ø It is anticipated that dividends in relation to FY 2011 will be 10.0 cents per share, fully franked 1213