Savills Plc. Results for Year Ended 31 December savills.com

Transcription

1 Savills Plc Results for Year Ended 31 December 2012 savills.com

2 Disclaimer Forward-looking statements These slides contain certain forward-looking statements including the Group s financial condition, results of operations and business, and management s strategy, plans and objectives for the Group. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group s control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that the Group operates in a highly competitive environment. All forward-looking statements in these slides are based on information known to the Group on the date hereof. The Group undertakes no obligation publicly to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 Presentation Format Results Introduction Financial Review Business Review Management Focus Outlook 3

4 Highlights Revenue up 12% to 806.4m (2011: 721.5m) Underlying PBT up 21% to 60.8m (2011: 50.4m) Record UPBT in Asia of 32.6m; up 18% Record UPBT in Property Management of 18.2m; up 9% Transaction Advisory profits of 32.8m; up 36% PBT Margin improvement from 7.0% to 7.5% Underlying Basic EPS up 22% to 35.3p (2011: 29.0p) Overall dividend up 18.5% to 16p per share (2011: 13.5p) 4

5 Financial Review 5

6 Summary Underlying Results Year ended December ( millions) % chg Revenue % Underlying profit before tax % Underlying PBT margin 7.5% 7.0% Underlying basic earnings per share % Dividend per share 16.0p 13.5p 18.5% Net cash % Net assets % 6

7 Underlying PBT Reconciliation Year ended December ( millions) Reported profit before tax Goodwill/intangible/investment impairments/amortisation Share-based payment adjustment Restructuring costs (Profit)/loss on disposal of subsidiaries, joint venture & available for sale (1.7) (2.3) investments Underlying PBT

8 Global Revenue and Underlying PBT Year ended December Revenue UPBT ( millions) % chg % chg Transaction Advisory % % Property Management % % Consultancy % % Investment Management % (23.4)% Unallocated / other (97.1)% (8.6) (7.8) (10.3)% Total % % UPBT margin 7.5% 7.0% 8

9 Revenue and Underlying Profit by Region Year ended December Revenue UPBT ( millions) % chg % chg UK % % Asia Pacific % % Europe % (7.0) (9.6) 27.1% America (3.2)% (2.1) (1.4) (50.0)% Investment Management % (23.4)% Unallocated / other (97.1)% (8.6) (7.8) (10.3)% Total % % 9

10 Transaction Advisory Business Year ended December Revenue UPBT ( millions) % chg % chg Commercial Transactions - Asia Pacific % % - UK % % - Europe % (6.0) (8.8) 31.8% - America (3.2)% (2.1) (1.4) (50.0)% Residential Transactions - UK % (0.7)% - Asia Pacific (7.0)% % % % UPBT margin 10.6% 8.8% 10

11 Non-transactional Business Year ended December Revenue UPBT ( millions) % chg % chg Property management - Asia Pacific % (3.7)% - UK % % - Europe (0.4)% (0.5) (0.7) 28.6% Total Property management % % Consultancy - UK % % - Asia Pacific % % - Europe % (0.5) (0.1) (400.0)% Total Consultancy % % Investment Management % (23.4)% Unallocated / other (97.1)% (8.6) (7.8) (10.3)% Total % % UPBT margin 5.6% 5.9% 11

12 Business Review 12

13 Commercial Transaction Advisory Business Year ended December Revenue UPBT ( millions) % chg % chg Commercial Transactions - Asia Pacific % % - UK % % - Europe % (6.0) (8.8) 31.8% - America (3.2)% (2.1) (1.4) (50.0)% Total % % UPBT margin 6.9% 3.5% Strong second half in Asia with increasing private demand for commercial assets Significant gains in Prime Central London transactions Previous UK business development activities contributing well Reduced losses in Europe - Improvements in Ireland, France and Netherlands US - Acquired final 25% in fourth quarter and restructured management 13

14 Residential Transaction Advisory Business Year ended December Revenue UPBT ( millions) % chg % chg Residential Transactions - UK % (0.7)% - Asia Pacific (7.0)% % Total % % UPBT margin 16.7% 16.2% UK Prime Residential continuing to perform well Prime Central London volumes down 7% UK Country market volumes increased by 5% Development sales strong with double the transaction volumes of 2011 Asia - Government measures to control activity. Strong performance in Singapore, Thailand and mainland China 14

15 Property Management Year ended December Revenue UPBT ( millions) % chg % chg Property Management - Asia Pacific % (3.7)% - UK % % - Europe (0.4)% (0.5) (0.7) 28.6% Total % % UPBT margin 6.1% 6.0% Total area under management up 29% to c.1,754m sq ft (2011: 1,360m sq ft) Asia Continued revenue growth but impacted by cost pressures UK Continued growth including prime residential lettings and significant commercial contract wins 15

16 Consultancy Year ended December Revenue UPBT ( millions) % chg % chg Consultancy - UK % % - Asia Pacific % % - Europe % (0.5) (0.1) (400.0)% Total % % UPBT margin 8.6% 8.8% Strong performance from UK planning, building and housing consultancy UK Valuations Stable revenues; insurance provisions (net increase of 1.4m over 2011) Asia Pacific - increased valuation and feasibility study assignments Continental Europe 0.6m redundancy costs in Q4 increased losses 16

17 Investment Management Year ended December Revenue UPBT ( millions) % chg % chg Investment Management % (23.4)% UPBT margin 15.3% 22.5% Assets under management increased 29% to 4.4bn Acquired IPAM in January 2012 to enhance German platform Investment costs during period formation of KAG/Paris office/portfolio managers/cio Substantial mandate wins increase investment capacity for

18 Asia Pacific Summary Year ended December Revenue UPBT ( millions) % chg % chg Transactions % % Property Management % (3.7)% Consultancy % % Total % % UPBT margin 9.80% 9.30% Transactions increase profit and improve UPBT margin to 9.8% (2011: 9.3%) Strong performances in Hong Kong, China, Singapore and Japan overcome weaker contribution in Australia 2013 increased control measures in Hong Kong, China and Singapore short term impact, but won t change long term fundamentals of high demand and limited supply in Prime markets 18

19 Europe Summary Year ended December Revenue UPBT ( millions) % chg % chg Commercial Transactions % (6.0) (8.8) 31.8% Property Management (0.4)% (0.5) (0.7) 28.6% Consultancy % (0.5) (0.1) (400.0)% Total % (7.0) (9.6) 27.1% Revenue growth despite continued reduction in market volumes Weaker performances in Germany and Sweden, but stronger in Ireland and the Netherlands 2011 restructuring improvements reduced loss. Further restructuring in 2012 (negative impact on UPBT of 700k) Strengthened management teams across the region 19

20 Diversification 2012 Revenue by Geography 'm UK Asia-Pacific Europe America Revenue by Business 'm Transaction Advisory Property / Facilities Mgmt Consultancy Investment Management Other Europe 9% (2011: 9%) America 1% (2011:1%) Consultancy 21% (2011:20%) Investment Mgmt 3% (2011:3%) Asia-Pacific 41% (2011:41%) UK 49% (2011:49%) Property / Facilities Mgmt 37% (2011:39%) Transaction Advisory 38% (2011:38%) 20

21 Management Focus Develop our global presence and branding Locations/ service lines Drive further margin improvement over medium term UK Merger/ IT investment (CRM) / cost management Continue development of Investment Management Platform 21

22 Outlook We have made a strong start to 2013, particularly in London and Asia and are confident of the Group s prospects. For the year as a whole we anticipate: Further improvements in our businesses in Continental Europe and the US; Weaker market conditions in a number of economies; Mid year impact of control measures in China and Hong Kong on transaction volumes But medium and long term characteristics of these markets remain compelling. 22