Servcorp Limited · ASX:SRV

Servcorp — FY2013 Earnings Presentation

15 slides from Servcorp's earnings presentation, Aug 27, 2013

  1. Slide 1: Servcorp Limited Analyst Presentation FY 2013

    Servcorp Limited Analyst Presentation FY 2013 Tuesday 27 August, 2013 Presented by A.G. Moufarrige Chief Executive Officer & Marcus Moufarrige Chief Operating Officer

  2. Slide 2: Operational Highlights

    Operational Highlights FY 2013  Revenue of $207,995,000  NPBT of $27,630,000  NPAT of $21,271,000  EPS of $0.22 cps  Mature floor NPBT of $42,216,000  NPBT growth in H2 of 22% vs. H1  Free cash produced (before tax) of $37,223,000  Unencumbered cash balances of $90,616,000 at 30 June 2013 

  3. Slide 3: Financial Results

    Financial Results FY 2013 % FY 2013 ¹ FY 2012 ² % Constant $AUD 000's $AUD 000's Currency Total Revenue 207,995 200,785 4% 5% Mature floor profit 42,216 37,307 13% Immature floor loss (14,586) (18,978) 23% Statutory NPBT 27,630 18,329 51% 53% Tax (6,359) (3,528) Statutory NPAT 21,271 14,801 44% 1: F

  4. Slide 4: Financial Results

    Financial Results FY 2013 As at As at 30 June 2013 30 June 2012 % $AUD 000's $AUD 000's Cash balance 99,758 104,334 (4%) Cash balance (unencumbered) 90,616 95,765 (5%) Total Net Assets 207,900 198,709 5% % FY 2013 FY 2012 Net Tangible Assets (per share) $1.96 $1.87 5% Earnings per share $0.22 ¹ $0.1

  5. Slide 5: Change in Depreciation Estimate and Normalised Result

    Change in Depreciation Estimate FY 2013  Depreciation rate of leasehold improvements reduced from 15% to 10% o 10% more accurately reflects the life of a Servcorp floor o Servcorp’s depreciation now aligned to industry standards  The impact was to increase NPBT by $6,130,000 in FY 2013 Normalised

  6. Slide 6: Financial Results - H1 vs. H2

    Financial Results FY 2013 - H1 vs. H2  Revenue improved by 3% in H2  Mature NPBT improved by 16% in H2  NPBT improved by 22% in H2 FY 2013 H1 vs. H2 AUD $000's 25,000 22,665 20,000 19,551 15,000 15,158 12,472 10,000 5,000 0 Mature NPBT NPBT H2 H1 6

  7. Slide 7: Mature Business

    Mature Business FY 2013 Mature Revenue & NPBT AUD $000's  In H1 FY 2013 business conditions remained challenging 200,000 o Aggressive price competition, which 188,472 o Adversely impacted revenue growth 180,630 160,000  Conditions improved in H2 FY 2013 120,000  Mature revenue increased by 4% dur

  8. Slide 8: The Servcorp Footprint and Immature Business

    The Servcorp Footprint Floors by Region 30 June 2013 ANZ/SEA  10 new floors opened in FY 2013 3 22 North Asia  72 new floors opened in the 48 months to 30 June 2013 43  We plan to open a further 8 large floors in FY 2014 EMEA Total = 132 o adding approximately 10% to office capacity USA 31  At 3

  9. Slide 9: Operating Summary by Region - ANZ/SEA

    Operating Summary by Region FY 2013 Mature Results - ANZ/SEA ANZ/SEA AUD $000's 80,000 Mature floors  Performance in New Zealand, Thailand and Malaysia 68,474 68,225 60,000 was consistent with FY 2012  Performance in Perth, Sydney and Singapore was worse than anticipated 40,000  Perth market cont

  10. Slide 10: Operating Summary by Region - North Asia

    Operating Summary by Region FY 2013 Mature Results - North Asia North Asia AUD $000's 80,000 Mature floors 69,998  North Asia produced a solid result in FY 2013 67,425 60,000  Shanghai and Hong Kong continue to disappoint  A weak JPY impacted revenues and profits 40,000  Underlying earnings from

  11. Slide 11: Operating Summary by Region - Europe & Middle East

    Operating Summary by Region FY 2013 Mature Results - EMEA Europe & Middle East AUD $000's 40,000 Mature floors 38,759  EMEA remains a key growth market for Servcorp 30,000 31,687  Revenues and profits from the region continue to grow  We now comply with licensing regulations in Saudi 20,000 Arabi

  12. Slide 12: Operating Summary by Region - USA

    Operating Summary by Region FY 2013 USA USA AUD $000's 15,000  Revenue from our USA business continues to 12,357 improve 10,000 8,737  USA business as a whole is now cash neutral 5,000 (excluding the new floor opened in March 2013 in New York) 0  All floors in the USA (except 1 new floor) will ma

  13. Slide 13: Dividend and Share Buy-Back

    Dividend FY 2013  Final dividend payable of 7.5 cents per share, fully franked  Total dividends payable in relation to FY 2013 of 15.0 cents per share, fully franked FY 2014 Forecast  Dividends of no less than 16 cents per share are expected to be paid for FY 2014  At this point, future franking

  14. Slide 14: Outlook

    Outlook FY 2014  Continue to remain optimistic about the outlook of Servcorp, and are encouraged by: o the continued growth in revenue, and; o the improvement in occupancy, particularly in Q4 FY 2013  Remain focused on reducing vacancy across the Serviced Office portfolio  Continue to focus on gr

  15. Slide 15: Questions & Answers

    Servcorp Limited Questions & Answers

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