Savills plc. Results for the six months ended 30 th June August 2017

Transcription

1 Savills plc Results for the six months ended 30 th June August 2017

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 publically to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 Results 1 Introduction, Highlights & Business Development 2 Financial Review 3 Management Focus 4 Summary and Outlook 3

4 Highlights Performance overview Group Revenue 714.4m +14.7% (cc 7.1%) Group UPBT Group UEPS 25.7p +17.9% Net Cash Dividend 4.65p +5.7% 48.1m +12.4% (cc 5.1%) 1.4m (2016 H1: 34.7m) Drivers Transaction advisory revenues up 15%, reflecting strong performance throughout Asia, Continental Europe and UK Commercial market. Property Management revenue up 13%, Consultancy revenue up 15%. Continued expansion in Europe and North America, through bolt-on acquisitions and recruitment. Savills IM revenue growth of 22% and underlying profits up 69%. cc = constant currency 4

5 Ten Year H1 Revenues m 800 Total Revenue 714.4m Total Revenue 278.1m Total Revenue 399.0m 44% Less-Transactional Revenue 402.3m % % % Transactional "Less-Transactional" 5

6 Savills Diversified Business Model Defensive, Scale Businesses Revenue by Business Cyclical, High-Margin Businesses Property Management 34% Consultancy 17% Commercial Transactions 33% Residential Transactions 11% Investment Management 5% Recurring revenue streams with less exposure to transaction environment 1.86bn ft 2 under management Strong Property Management business 56% 44% High-return, but cyclical earnings 76:24 split Commercial vs. Residential 58:42 Commercial split Tenant rep/leasing vs. Capital markets 16.0bn AUM Combination of cyclical and less cyclical service lines 6

7 Broad Geographic Spread Over 33,000* employees and over 600 offices in more than 60 countries Over 31,000 employees in 700 offices in more than 60 countries 5,442 Employees 137 Offices 1,118 Employees 38 Offices 743 Employees 30 Offices 26,501 Employees 63 Offices Revenue 103.6m 580 (14% Employees of Total) Revenue 275.3m (39% of Total) Revenue 72.0m (10% of Total) Revenue 263.5m (37% of Total) *Staff numbers weighted average for 2017 H1 7

8 Recent acquisitions in Europe Aguirre Newman (Spain / Portugal) Annual Revenue circa 69m (net 40m) 400 staff Larry Smith (Italy) Annual Revenue circa 7m 80 staff Shows current offices of Aguirre Newman and Larry Smith. Savills has existing offices in Madrid, Barcelona and Milan. 8

9 Financial Review 9

10 Summary Underlying Result 6 months ended 30 June ( m) % chg Revenue % Underlying PBT % Underlying PBT margin 6.7% 6.9% (0.2)% pts Underlying basic earnings per share 25.7p 21.8p +17.9% Dividend per share 4.65p 4.40p +5.7% Net cash n/a Net assets % 10

11 Revenue and underlying PBT by business Revenue m Transaction Advisory % Property Management % Consultancy % Investment Management % 33.6 UPBT % 24.6 Combined revenue and UPBT growth of 13% and 11% respectively % +24% % 6.6 The figures in these charts exclude revenues of 1.1m and other net costs of 3.5m (2016-H1 2.8m) not allocated to the operating activities of the group s business segments Margin 8.6% 7.9% 4.7% 4.1% 7.8% 8.4% 14.2% 19.6% 11

12 Revenue and underlying PBT by region m UK Asia Pacific North America +7% +26% Continental Europe Revenue % % UPBT 0 +2% % (62)% n/a (0.1) Margin 9.7% 9.2% 6.3% 8.3% 8.3% 2.9% (0.2)% 2.1% The figures in these charts exclude revenues of 1.1m and other net costs of 3.5m (2016-H1 2.8m) not allocated to the operating activities of the group s business segments 12

13 Cashflow performance 250 Cash used in operations of 35m At 30 June Net cash of 1.4m At 30 June Net cash of 34.7m 150 m Net cash at 31-Dec-2016 UPBT Non-cash items Working capital Acquisition spend - current & deferred Capex Cash flows from investments Purchase of EBT shares Dividends paid 14 Tax 5 Foreign exchange Other 1 Net cash at 30-Jun

14 Commercial Transaction Advisory 2017 Revenue 237.0m (+20%) 2017 UPBT 16.3m (+26%) Asia Pacific UK Europe North America (2) (0.9) Asia Pacific UK Europe North America Growth +39% +23% +18% +10% Growth +169% +67% n/a (62)% North America subdued capital markets and reduction in leasing activity in Chicago, New York and Washington DC. Capital Markets and other team hires increased cost base short term. Europe revenue growth across the region, in particular France and Germany. New start-ups in Czech Republic and Luxembourg impacting cost base. UK significant growth in Investment and Development revenue. Asia Pacific strong growth in revenues in Hong Kong, Japan and Australia. Increasing controls over export of Chinese capital 14

15 Residential Transaction Advisory 2017 Revenue 75.1m (+2%) 2017 UPBT 8.3m (-20%) Asia Pacific UK - Asia Pacific UK Growth +23% -4% Growth -3% -27% UK second-hand sales broadly flat despite declining market volumes. Some currency underpin for international buyers UK new development sales reduced reflecting fewer exchanges and lower average unit values; but good pipeline of reservations. Asia Pacific strong growth in Hong Kong primary and secondary markets; further cooling measures in Hong Kong 15

16 Property Management 2017 Revenue 246.6m (+13%) 2017 UPBT 10.2m (2016 H1: 10.2m) Asia Pacific UK Europe (1) (2) (1.0) Asia Pacific UK Europe Growth +18% +3% +16% Growth (2)% +2% n/a Asia Pacific revenue growth in Hong Kong, China and Korea. UK strong revenue growth in Residential lettings and Commercial property management. Europe revenue growth in the Netherlands and Ireland. 16

17 Consultancy 2017 Revenue 121.0m (+15%) 2017 UPBT 10.2m (+24%) UK Asia Pacific Europe UK Asia Pacific Europe -0.4 Growth +13% +35% -4% Growth +11% +1,200% n/a UK strong performances in building & project consultancy and hotels & leisure. Asia Pacific valuation growth in Australia, China and Hong Kong. Europe lower revenues in Germany and the Netherlands offsetting growth elsewhere in Europe. 17

18 Investment Management 2017 Revenue 33.6m (+22%) 2017 UPBT 6.6m (+69%) UK Europe Asia Pacific UK Europe Asia Pacific Growth +3% +16% n/a Growth -8% +192% n/a Positive impact of Transaction fees on Fund disposals; but pure management fees still represented 67% of revenue Capital raising slightly ahead of H at 0.8bn and 3.0bn transacted (H1 2016: 1.0bn) Assets under management reduced through disposals to 16.0bn (2016-H1: 17.1bn), slightly higher than forecast at this stage of the programme. 18

19 Management Progress 19

20 Management Focus Integrate new acquisitions: Aguirre Newman and Larry Smith Develop the New York Capital Markets team Continue to invest and grow Property Management and Consultancy Expand Savills Investment Management s platform Review new markets India 20

21 Summary and Outlook A strong H1 despite some uncertain markets, but with positive currency effect Results again demonstrate the breadth and depth of the business, both by geography and business sector The Board s expectations for the full year remain unchanged 21

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