Slide 1: For personal use only
For personal use only 19 February 2025
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
02 03 For personal use only 01 BUSINESS UPDATE GLOBAL EXPANSION 1H25 HIGHLIGHTS 05 04 06 SEGMENT OUTLOOK & FINANCIAL OVERVIEW DIVIDEND RESULTS
Slide 4: For personal use only
For personal use only
Slide 5: A Year of Milestone
For personal use only A YEAR OF MILESTONE
Slide 6: Underlying Results
UNDERLYING RESULTS For personal use only Underlying Underlying Underlying Free Cash NPBIT Operating Profit on pcp on pcp on pcp Underlying Underlying Dividend Operating Revenue EPS per Share on pcp on pcp on pcp 6
Slide 7: Statutory Results
STATUTORY RESULTS For personal use only Statutory Statutory Revenue Operating Profit Statutory NPBT on pcp on pcp on pcp Statutory NPAT Free Cash Basic EPS on pcp on pcp on pcp 7
Slide 8: For personal use only
For personal use only
Slide 9: Continued Investment in FY
CONTINUED INVESTMENT IN FY For personal use only Enhanced Check-in & Facial Recognition Global Booking System Completed Our check-in process has commenced to be significantly Servcorp has successfully completed the development and rollout of improved with the introduction of facial recognition its g
Slide 10: For personal use only
For personal use only
Slide 11: Growing Global Presence
GROWING GLOBAL PRESENCE For personal use only Strategic Expansion in 1H25 • Servcorp continued its growth with the opening of 3 new operations, including 1 in Australia & New Zealand and 2 in the Middle East, strengthening strategic presence in these key regions. Upgrading and Enhancing Workspaces •
Slide 12: Improved Global Footprint
IMPROVED GLOBAL FOOTPRINT • In 1H25, Servcorp continued expanding its global footprint where suitable opportunities and management depth are For personal use only present. • In the 6 months to 31 December 2024, $14.8m capital expenditure were invested to launch 4 new locations, including a replaceme
Slide 13: Portfolio Overview
PORTFOLIO OVERVIEW For personal use only Staggered Lease Expir y Profile Diversifie dClient Base Less than 1 Year 1 to 3 years 3 to 5 years 5 to 10 years Over 10 years 13 ANZ & SEA North Asia Europe & Middle East USA
Slide 14: For personal use only
For personal use only
Slide 15: Financial Performance
FINANCIAL PERFORMANCE For personal use only Revenue Underlying NPBIT 170.0 168.1 40.0 34.4 157.7 30.0 29.0 155.0 #039;mil #039;mil 145.4 22.6 140.0 137.7 20.0 13.6 125.0 10.0 1H22 1H23 1H24 1H25 1H22 1H23 1H24 1H25 FY COMMENCED Return on Funds Employed ROFE WITH A ROBUST START 1H25 70% FY24 68% FY22 FY21
Slide 16: Revenue
REVENUE Underlying Operating Revenue* achieved a growth of 7% year-on-year For personal use only Underlying Operating Revenue on pcp +$ +$ GROWTH PRICING OFFICES + 16 cOWORKING * Underlying Operating Revenue refers to revenue generated by Mature floors from operating activities
Slide 17: Expenses
EXPENSES Overall expenses decreased 4% on 1H24, while revenue* was up 7% For personal use only • Service expenses increased marginally by $0.6m or 2%, reflecting effective cost disciplinary measures implemented to counter-effect the persistent inflationary pressure. • Servcorp continued its strategi
Slide 18: Profitability
PROFITABILITY Underlying Operating Profit up 22%*; Statutory NPBT up 70%* For personal use only • Strong 1H25 Underlying NPBIT of $34.4m, up $5.5m or 19% on pcp**, supporting progress toward meet the full-year profit guidance • Statutory NPBT includes non-recurring credit adjustment totalling $6.8m
Slide 19: Cash Flow
CASH FLOW Large cash reserve to support organic growth and continued global expansion For personal use only 1H25 1H24 Var Var #039;m #039;m #039;m % Net Operating Cash flow $91.7 81.6 10.1 12% Add: Tax paid 2.6 7.1 (4.4) (63%) Less: Lease liability Cash Rent for related period paid in related period 54.9 57.
Slide 20: Cash Flow
CASH FLOW Includes expansion at 250.0 four new operations & upcoming centres For personal use only Mostly relating to 200.0 profit growth in regions with higher income tax regime Dividend of 13.0 cps ($61.5) made up of net rent timing $100.9 differences Total 150.0 ($1.2) ($2.6) Unencumbered Total U
Slide 21: Balance Sheet
BALANCE SHEET Balance Sheet Dec-24 Jun-24 PP&E ROUA Total PP&E & ROUA For personal use only #039;m #039;m #039;m #039;m #039;m Cash 119.0 103.3 Opening balance 89.6 316.5 406.1 Trade Receivables1 39.6 35.9 PP&E & ROUA 409.4 406.1 Addition3 14.8 45.4 60.2 Software & Intangible 2.6 2.7 Disposal4 (0.0) (13.8) (13.8)
Slide 22: For personal use only
For personal use only
Slide 23: Segment Overview
SEGMENT OVERVIEW For personal use only • Segment Profit from mature operations remains steady at $8.0m • Although revenue was lower year-on-year due to adverse forex impact • Segment Revenue from mature operations showed marginal growth despite arising from converting local currencies into the repor
Slide 24: All Mature Operations
ALL MATURE OPERATIONS Mature: Revenue, Segment Profit & For personal use only • Strong Growth in Mature Operations Cash Earnings $200.0 Servcorp’s mature operations saw solid growth in 1H25. Revenue increased from $147.9m in 1H24 to $158.8m in 1H25, highlighting the continued strength and resilience
Slide 25: ANZ and South East Asia
ANZ AND SOUTH EAST ASIA Mature: Revenue, Segment Profit & For personal use only • Stable Revenue Performance Cash Earnings Mature revenue showed a slight increase, rising from $34.5m to $34.8m, reflecting $40.0 a 1% growth. While the growth was modest, it demonstrates the resilience of the regional
Slide 26: North Asia
NORTH ASIA For personal use only • Revenue Decline Due to Forex Impact Mature: Revenue, Segment Profit Mature revenue declined from $44.4m to $42.7m, primarily due to unfavourable & Cash Earnings foreign exchange movements when converting local currency revenue into AUD. The $60.0 underlying busines
Slide 27: Europe and Middle East
EUROPE AND MIDDLE EAST Mature: Revenue, Segment Profit & For personal use only • Strong Revenue Growth Mature revenue increased significantly from $59.0m to $69.9m, reflecting a 19% year- Cash Earnings on-year growth, highlighting Servcorp’s ability to capitalize on market opportunities and $80.0 de
Slide 28: USA
USA For personal use only • Steady Progress in Core Operations Mature: Revenue, Segment Profit In the first half of 2025, USA achieved solid growth, with key financial metrics showing & Cash Earnings notable improvements. Mature revenue grew from $9.4m in 1H24 to $10.3m in 1H25, up 9% on pcp. The im
Slide 29: For personal use only
For personal use only
Slide 30: Dividends
DIVIDENDS Interim FY25 Dividend For personal use only • Interim dividend payable of 14.0 cps, 10% franked, payable on 2 April 2025 • Expected Final FY25 dividend no less than 14.0 cps • Total FY25 dividend expected to be not less than 28.0 cps (up 12%) Dividends paid/estimate (cents per share) 30.0
Slide 31: Outlook Guidance
OUTLOOK GUIDANCE For personal use only Business Outlook With the first half of FY25 behind us, Servcorp continues to demonstrate resilience and steady business performance. Our disciplined execution and strategic initiatives have led to positive momentum across key operational metrics. While macroec
Slide 32: For personal use only
For personal use only
Slide 33: Revenue
REVENUE For personal use only #039;m 1H25 1H24* Var % Statutory Total Revenue 168.1 157.7 10.4 7% Add Revenue from JV operation 0.8 0.9 (0.1) (6%) Less Other revenue and income** (0.9) (1.8) 0.9 (52%) Operating Revenue 168.1 156.7 11.3 7% Less Pre-maturity revenue (9.3) (3.7) (5.6) 151% Post-closure re
Slide 34: Profit
PROFIT 1H25 1H24 Var Var 1H24 #039;m For personal use only #039;m #039;m #039;m % Statutory NPBT 38.3 22.5 15.8 70% 1H24 Underlying NPBIT reported in 1H24 28.3 Floors closed in the last 12 months on 1H24** (0.6) Add Floors turned mature in the last 12 months on 1H24 1.2 Operating loss from pre-mature or post-cl
Slide 35: Profit
PROFIT Statutory Profit Underlying 1H25 1H24* Var Var 1H25 1H24 Var Var For personal use only #039;m #039;m #039;m % #039;m #039;m #039;m % Revenue and other income 168.1 157.7 10.4 7% Statutory Revenue and other income 168.1 157.7 10.4 7% Total expenses (129.9) (135.2) 5.3 4% Revenue from JV 0.8 0.9 (0.1) (6%) Net p
Slide 36: Segment
SEGMENT 1H25 Total 1H24 Total Adj. Total Revenue from Adj. from status Revenue from Revenue from Other 1H25 Mature Revenue from Revenue from Other 1H24 Mature For personal use only new floors pre- changes since new floors pre- Continuing adjustments Revenue Continuing Continuing adjustments Revenue
Slide 37: KPI Tracker
200.0 35.0 KPI TRACKER 30.0 150.0 25.0 EPS (cents) 20.0 #039;m 100.0 Statutory Revenue Underlying NPBIT Underlying EPS 15.0 For personal use only #039;m #039;m cents 10.0 50.0 1H22 137.7 13.6 11.6 5.0 1H23 145.4 22.6 20.0 1H24 157.7 29.0 26.0 - - 1H25 168.1 34.4 31.5 1H22 1H23 1H24 1H25 Statutory Revenue Und
Slide 38: Stats vs Underlying Tracker
STATS vs UNDERLYING TRACKER Statutory Revenue vs. Revenue from continuing operations and other income* For personal use only Revenue Revenue from 200.0 $168.1 Statutory continuing $157.7 Revenue operations & $145.4 0.0 150.0 $137.7 $0.6 other income $0.0 $0.8 #039;m #039;m #039;m 100.0 1H22 137.7 136.9 $168.
Slide 39: Glossary
GLOSSARY ANZ Australia and New Zealand For personal use only Cash Earnings Is EBITDA minus Cash Rent paid Cash Rent Cash Rent is the amount paid to a landlord (or lessor) by Servcorp as a lessee under the terms of a signed lease agreement cps Cents per share DPS Dividend per share EME Europe & the M