Slide 1: ASX cover letter: Half Year Results Presentation
o SERVCORP 20 February 2013 The Manager ASX Market Announcements Office Australian Securities Exchange By electronic lodgement Dear Sir Servcorp Limited (SRV) Half Year Results Presentation Enclosed is a copy of the 2013 Half Year Results briefing presented at Servcorp’s results presentation held at
Slide 2: Servcorp Results Presentation H1 FY 2013
For personal use only Servcorp Limited Results Presentation H1 FY 2013 A.G. Moufarrige, Chief Executive Officer Wednesday 20 February 2013 Marcus Moufarrige, Chief Operating Officer
Slide 3: Operational Highlights H1 FY 2013
Operational Highlights H1 FY 2013 For personal use only Revenue of $102,668,000 Statutory NPBT of $12,472,000 Leasehold depreciation rate changed from 15% to 10% Normalised NPBT of $9,384,000, 15% above H1 FY 2012 Statutory mature floor NPBT of $19,551,000 Free cash produced (before tax)
Slide 4: Operational Highlights: Total Number of Floors
Operational Highlights H1 FY 2013 For personal use only 35 Total Number of Floors at 31 December 2012 = 128 30 30 Number of Floors 25 21 21 20 19 15 13 12 10 9 5 3 0 Australia & Japan Southeast Asia Middle East India Greater China Europe USA New Zealand (Franchise) Region 3
Slide 5: Change in Depreciation Estimate
Change in Depreciation Estimate H1 FY 2013 For personal use only The depreciation rate of leasehold improvements changed from 15% to 10% o Effective 1st July 2012 o The new rate more accurately reflects the life of a Servcorp floor o More closely aligns Servcorp’s depreciation policy to the indust
Slide 6: Financial Results
Financial Results H1 FY 2013 For personal use only H1 FY 2013 H1 FY 2012 $AUD 000's $AUD 000's Total Revenue 102,668 99,381 Statutory mature floor NPBT 19,551 18,523 Statutory immature floor loss (7,079) (10,359) Statutory NPBT ¹ ² 12,472 8,164 Tax (2,636) (1,765) Statutory NPAT 9,836 6,399 1. The s
Slide 7: Financial Results
Financial Results H1 FY 2013 For personal use only As at As at 31 December 2012 30 June 2012 $AUD 000's $AUD 000's Cash balance 95,861 104,334 Cash balance (unencumbered) 87,149 95,765 Total Net Assets 198,188 198,709 Net Tangible Assets (per share) $1.86 $1.87 H1 FY 2013 H1 FY 2012 Earnings per sha
Slide 8: Mature Business
Mature Business H1 FY 2013 For personal use only Mature floor NPBT for the first half was $19.55M Difficult global market conditions continued to impact: o business confidence o office sales Mature floor performance in the first four months was very challenging in Singapore, Australia, Japan a
Slide 9: Immature Business
Immature Business H1 FY 2013 For personal use only Immature floor losses for H1 FY 2013 were $7.08M Revenue and occupancy continues to increase in the immature business 37 floors were immature at 31 December 2012 8
Slide 10: Immature Business
Immature Business H1 FY 2013 For personal use only 20 Immature Floors 19 at 31 December 2012 = 37 Number of Immature Floors 15 10 7 5 4 3 2 2 0 0 Australia & New Japan Southeast Asia Middle East Greater China Europe USA Zealand Region 9
Slide 11: Global Expansion Update
Global Expansion Update For personal use only Slowed pace of expansion in FY 2013 Opened 5 new floors in the first half Anticipate opening an additional 6 floors in second half 67 floors opened in 42 months to 31 December 2012 10
Slide 12: Global Expansion Update
Global Expansion Update For personal use only 25 Floors opened in the 42 months to 31 December 2012 = 67 21 Floors Opened During Expansion 20 15 13 12 10 8 6 5 4 3 0 Australia & Japan Southeast Asia Middle East Greater China Europe USA New Zealand Region 11
Slide 13: Operating Summary by Region: Australia & New Zealand
Operating Summary by Region H1 FY 2013 For personal use only Australia & New Zealand Australia experienced difficult trading conditions during H1 FY 2013 Impacted by the loss of four major clients in the first half Sydney and Perth, in particular, performed worse than expected A large supply
Slide 14: Operating Summary by Region: Japan
Operating Summary by Region H1 FY 2013 For personal use only Japan Trading conditions in Japan continue to be challenging and highly competitive Strong AUD had a negative impact on translated revenue and earnings An ageing floor in Tokyo was closed during the half 13
Slide 15: Operating Summary by Region: Middle East
Operating Summary by Region H1 FY 2013 For personal use only Middle East The Middle East is a growth market and results continue to improve Mature results in Qatar, UAE, Saudi Arabia and Bahrain were encouraging Floors in Turkey, Beirut and Kuwait became mature o loss from new floors slightly
Slide 16: Operating Summary by Region: Greater China
Operating Summary by Region H1 FY 2013 For personal use only Greater China Greater China’s overall performance was consistent with the prior half Beijing’s performance improved markedly The results in Shanghai and Hong Kong were disappointing There is considerable room for improvement in bot
Slide 17: Operating Summary by Region: Southeast Asia
Operating Summary by Region H1 FY 2013 For personal use only Southeast Asia The performance of Singapore was below original expectations A recovery in the second half is anticipated Both Malaysia and Thailand produced solid results One floor opened in Singapore in H1 FY 2013 16
Slide 18: Operating Summary by Region: Europe & UK
Operating Summary by Region H1 FY 2013 For personal use only Europe & UK Europe’s result was encouraging Both Paris and London have improved London out-performed on the profit line Brussels’ performance was consistent with the prior period 17
Slide 19: Operating Summary by Region: USA
Operating Summary by Region H1 FY 2013 For personal use only USA Revenue from our USA business continues to improve each month On a run rate basis, the USA business is now cash neutral Management still anticipate the USA to mature at the beginning of FY 2014 18
Slide 20: Dividend
Dividend H1 FY 2013 For personal use only Interim dividend of 7.5 cents per share, 100% franked Dividend FY 2013 Forecast Forecast final dividend of 7.5 cents per share, 100% franked for FY 2013 This payment is subject to currencies remaining constant, global financial markets remain stable and
Slide 21: Outlook FY 2013
Outlook FY 2013 For personal use only Global markets continue to be volatile The global Serviced Office industry continues to experience aggressive price competition It is Management’s intention to reduce vacancy across the whole portfolio over the next twelve months We will also continue to