Slide 1: Global Virtual Office expansion and capital raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS For personal use only Servcorp Limited Global Virtual Office expansion and capital raising 12 October 2009
Slide 2: Disclaimer
Disclaimer For personal use only This presentation (Presentation) is issued by Servcorp Limited (ABN 97 089 222 506) (Servcorp). This Presentation is in relation to an institutional placement and an accelerated non-renounceable entitlement offer of new Shares to be issued by Servcorp under section 7
Slide 3: Servcorp business highlights
Servcorp business highlights Servcorp is a market leader in the Serviced Office business and has a track record of global For personal use only growth, with strong cash flow generation and return on capital from existing business A market leading Serviced Office business Track record of successf
Slide 4: The transformation of Servcorp
The transformation of Servcorp Through 30 years of investment, Servcorp has built a proprietary IT platform For personal use only When it was established in 1978 Servcorp’s offering was premium quality Serviced Office space To improve the client service offering, Servcorp developed proprietary I
Slide 5: Servcorp senior management team
Servcorp senior management team For personal use only Key management Other senior management Alf Moufarrige, Chief Executive Officer Susie Martin – Alf is one of the global leaders in the Serviced Office – General Manager, Australia and industry, with 30 years of experience New Zealand – Alf is
Slide 6: Servcorp today
Servcorp today Diversity of exposure For personal use only Return on capital1 2009A floors by region 2008A and 2009A (%) 3%3% 3% 3% 100% 6% Qatar Bahrain 90% ROC (%) Australia New Zealand 80% 76% 28% 70% Singapore China 70% 26% Hong Kong Malaysia 60% Thailand Japan 50% 4% France Belgium 2008A 2009A
Slide 7: 2009 financial performance
2009 financial performance For personal use only Financial performance Events post balance date A$ million; YE 30 June 2008A 2009A A number of events have occurred since 30 June 2009 Revenue 190.1 228.6 – Servcorp has paid a dividend of approximately $8 million Mature floor EBITDA 58.2 62.3 – six
Slide 8: The Servcorp Platform
The Servcorp Platform For personal use only The Network Virtual Office Serviced Office Physical and Virtual Targeting SOHO’s/SME’s Primarily targeting growth SME’s or branch offices of MNC’s Currently over 60 locations Potentially every home business “Plug and play” infrastructure All
Slide 9: Competitive advantage
Competitive advantage For personal use only Scalable global network Proprietary VoIP software Purpose built to provide Virtual Developed in-house by Servcorp’s Customer Office service R&D engineers facing Tested—10 years since its initial deployment Enables key customer functionality (eg. ad
Slide 10: Attractive market fundamentals
Attractive market fundamentals Servcorp management believes that current market conditions represent a superb For personal use only opportunity to expand and lock in lower cost structures than previously available Favourable rental Favourable market conditions for Servcorp to acquire new space on
Slide 11: Servcorp growth road map
Servcorp growth road map Servcorp’s target is to open at least 100 additional floors over the next three to four years For personal use only Virtual Office roll-out strategy Geographic presence1 Servcorp intends to accelerate its floor expansion targeting at least 100 new floors over the next ~3 t
Slide 12: Virtual Office versus Serviced Office
Virtual Office versus Serviced Office The Servcorp technology platform allows the Virtual Office to be expanded off a smaller For personal use only fixed cost infrastructure resulting in lower capital outlay, cheaper cost structure and potentially higher returns Target Virtual Office versus Serviced
Slide 13: Virtual Office model successfully implemented
Virtual Office model successfully implemented There are more than 14 existing Servcorp locations that have over 500 virtual packages For personal use only Ariake June 20091 June 20081 Growth (pcp) Virtual Office cost structure locations include Revenue (JPY) 6,558,369 3,854,053 Paris, Tokyo (Ariak
Slide 14: Offer overview
Offer overview For personal use only Accelerated non-renounceable 1 for 11 entitlement offer and institutional placement to Offer structure raise gross proceeds of approximately $80 million – institutional entitlement offer to raise approximately $22 million – institutional placement to raise appr
Slide 15: Impact of offer and expansion plan
Impact of offer and expansion plan The capital raising along with available existing cash reserves, will be used to fund the For personal use only expansion Statement of financial position Use of proceeds A$ millions 2009A Adj 2009PF Along with available existing cash reserves1, Cash 84 781 162 fu
Slide 16: Timetable
Timetable For personal use only Event Date 1,2 Institutional entitlement offer and placement offer 9.00am, Monday 12 October 2009 Institutional entitlement offer and placement close 5.00pm, Monday 12 October 2009 Trading recommences Tuesday 13 October 2009 Record date 7.00pm, Thursday 15 October 200
Slide 17: Key risks
Appendix 1—Key risks For personal use only Introduction A number of risks and uncertainties, which are both specific to Servcorp and of a more general nature, may affect the future operating and financial performance of Servcorp and the value of Servcorp shares. You should carefully consider the f
Slide 18: Key risks (cont)
Appendix 1—Key risks (cont) For personal use only Control systems – There will be pressure placed on the ability of Servcorp to maintain appropriate control, compliance, operating and financial systems. There is a risk that a failure of these systems may lead to delays in implementing the expansion
Slide 19: Key risks (cont)
Appendix 1—Key risks (cont) For personal use only Foreign currency risk Servcorp’s activities expose it to financial risks of changes in foreign currency exchange rates. Movements in the Australian dollar and other currencies in which Servcorp generates revenue may have an adverse impact on Servco
Slide 20: Key risks (cont)
Appendix 1—Key risks (cont) For personal use only Founder control and shareholding Following the offer, Alf Moufarrige will own no less than approximately 50% of the undiluted shares on issue of Servcorp and will therefore retain control of the company. The sale of a large portion of the shares ow
Slide 21: Key risks (cont)
Appendix 1—Key risks (cont) For personal use only Competition Servcorp faces competition from similar businesses in many of the markets it operates in. Some of those competitors have greater financial resources than are available to Servcorp. In addition, falling rents and higher vacancy rates pro
Slide 22: International Selling Restrictions
Appendix 2—International Selling Restrictions For personal use only This presentation and any accompanying documents do not constitute an offer or invitation in any jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. The distribution of this p
Slide 23: International Selling Restrictions (cont)
Appendix 2—International Selling Restrictions (cont) For personal use only Netherlands In relation to each member state of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”), no offer of the shares the subject of the offer to which this pres
Slide 24: International Selling Restrictions (cont)
Appendix 2—International Selling Restrictions (cont) For personal use only Hong Kong This presentation and any accompanying documents (Documents) are provided only for the personal and confidential use of professional investors as defined in the Hong Kong Securities and Futures Ordinance (Cap 571)
Slide 25: International Selling Restrictions (cont)
Appendix 2—International Selling Restrictions (cont) For personal use only France Prospective investors are informed that no prospectus (including any amendment, supplement or replacement thereto) has been or will be prepared in connection with the offering of the shares the subject of the offer t
Slide 26: International Selling Restrictions (cont)
Appendix 2—International Selling Restrictions (cont) For personal use only Singapore Neither this presentation nor any accompanying documents (“Documents”) have been, or will be, registered as a prospectus in Singapore with the Monetary Authority of Singapore under the Securities and Futures Act,
Slide 27: International Selling Restrictions (cont)
Appendix 2—International Selling Restrictions (cont) For personal use only Germany The shares the subject of the offer to which this presentation relates (New Shares) are neither registered for public distribution with the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleis