Slide 1: FY20 Results Presentation
For personal use only Servcorp Limited FY20 Results Presentation Tuesday 25 August 2020 Presented by: Mr. Alf Moufarrige, Chief Executive Officer Presented by: Mr. Alf Moufarrige, Chief Executive Officer & Mr. Anton Clowes, Chief Financial 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: COVID-19 Impact
COVID-19 Impact The consequences of the COVID-19 pandemic for the flexible workspace industry have been For personal use only unprecedented. In response, Servcorp has rapidly adapted to the present environment across our global footprint, with the first priority being to protect the health and safet
Slide 4: COVID-19 Response
COVID-19 Response Servcorp is well positioned to manage through a range of potential recovery scenarios: For personal use only A strong liquidity position Since 2010 Servcorp has conservatively maintained a strong balance sheet. This conservatism will provide a buffer in handling the liquidity pre
Slide 5: For personal use only
For personal use only 5
Slide 6: Headlines
Headlines Strong underlying performance despite COVID-19 trading conditions For personal use only in 4Q20 Revenue and other income up 5% Continued Operations revenue up 11% Underlying1 NPBT up 17% Underlying Free Cash up 3% Operating performance in the first 9 months of FY20 up 17% Res
Slide 7: FY20 Result
FY20 Result For personal use only Underlying NPBT $37.5m, up 17% UnderlyingA FY20 v Statutory FY20 FY19 FY19 FY20 FY19 A$m A$m Revenue and other income 327.4 295.2 11% 352.9 337.2 Operating expenses (289.9) (263.2) 10% (337.3) (324.7) Net profit before tax 37.5 32.0 17% 15.6 12.5 Income tax expense
Slide 8: Statutory Position: Balance sheet and Cash flow
Statutory Position Balance sheet and Cash flow For personal use only Jun-20 Jun-19 FY20 FY19 Balance Sheet Cash Flow A$m A$m A$m A$m Cash 99.9 65.1 Opening cash 1 July 65.1 93.4 Trade receivables 31.1 46.4 A A Net operating cash inflows 182.3 51.0 PP&E 476.4 145.6 Net investing cash flows (18.0) (52
Slide 9: Performance
Performance Satisfactory underlying operating performance For personal use only FY20 Revenue of $352.9m up 5% from $337.4m – a new Servcorp record. FY20 Continued operations revenue of $327.5m was up 11% on the pcp FY20 Underlying NPBT of $37.5m underpinned by a strong North Asia result, improve
Slide 10: Positioning: Healthy cash flow & liquidity
Positioning Healthy cash flow & liquidity For personal use only Cash $101.4m, up $35.2m from $66.2m at 30 June 2019 10
Slide 11: Servcorp Capacity: Global Footprint
Servcorp Capacity For personal use only Global Footprint Our global footprint encompasses 126 floors, in 43 cities across 21 countries During the first three quarters of FY20 we opened new floors in New York City and Shanghai and expanded existing locations in Brisbane and Hobart. In FY20 we red
Slide 12: Servcorp Capacity: Coworking
Servcorp Capacity For personal use only Coworking Recent growth in the flexible workspace industry has been underpinned by the expansion of coworking spaces. The COVID-19 pandemic has had a significant impact on coworking. Given the nature of coworking and its inherent lack of social distancing, cow
Slide 13: AASB16 – Leases Key Messages
AASB16 – Leases Key Messages For personal use only No impact on our business No Impact on Our economics Cash How the business is managed Significant impact on financial reporting Leases brought on to the balance sheet Positive NPBT impact over time; not material in FY20 Special conce
Slide 14: Segment Performance: Global overview
Segment Performance For personal use only Global overview Like for Like Like for LikeA Like for Like Segment Segment Profit / Margin Revenue Cash EarningsB (Loss) A$m A$m A$m % FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 ANZ & SEA 79.5 82.0 10.3 9.5 20.0 18.5 13% 12% North Asia 130.9 110.8 23.0 29.7 32.
Slide 15: Operating Summary by Segment: ANZ and South East Asia
Operating Summary by Segment For personal use only ANZ and South East Asia (ANZSEA) Like for Like segment profit in ANZ & SEA was up 8% in FY20, slowed in the third quarter of FY20 as a result of the impact of the COVID-19 pandemic. Thailand performed poorly in FY20. Like for Like Cash Earnings
Slide 16: Operating Summary by Segment: North Asia
Operating Summary by Segment (cont’d) For personal use only North Asia Despite the impact of COVID-19 North Asia as a whole produced a solid result with the drag on profit attributed to China (including Hong Kong). Like for like revenue was up 18% from $110.8m to $130.9m. Like for Like Cash Ea
Slide 17: Operating Summary by Segment: Europe and Middle East
Operating Summary by Segment For personal use only (cont’d) Europe and Middle East (EME) Despite the impact of COVID-19 EME produced an outstanding result with significant contributions from Saudi Arabia, UAE and Qatar partially offset by a poor performance from France. Like for Like segment pro
Slide 18: Operating Summary by Segment: USA
Operating Summary by Segment (cont’d) For personal use only USA Implemented some significant structural changes in our USA business. Replaced the General Manager in the USA. Ms. Colleen Susini (based in New York) joined us in April and comes with extensive flexible workspace industry experience.
Slide 19: Dividend
Dividend For personal use only Final FY20 dividend Final dividend payable of 9.0 cps, unfranked, payable on 1 October 2020 Dividends paid (cents per share) 30.0 25.0 20.0 13.0 13.0 10.0 11.0 cps 15.0 9.0 10.0 11.0 13.0 13.0 13.0 11.0 5.0 0.0 FY16 FY17 FY18 FY19 FY20 Interim Final FY21 dividend F
Slide 20: Outlook: COVID-19 and the next months
Outlook COVID-19 and the next 12 months For personal use only While it remains unclear how long global COVID-19 restrictions will continue, and the recovery profiles as restrictions are eased, Servcorp’s operations are likely to remain adversely impacted at least in the short term. The focus for the
Slide 21: Outlook (cont'd): Medium Term
Outlook (cont’d) Medium Term For personal use only We have undertaken a detailed review of our business. For FY21 we anticipate that even at a low case, Servcorp will remain profitable, consequently, we expect the underlying business to continue to generate substantial Underlying Free CashA. In thos
Slide 22: Questions & Answers
For personal use only 22 & ANSWERS QUESTIONS