Savills plc. Results for the year ended 31 December 2015

Transcription

1 Savills plc Results for the year ended 31 December March 216 1

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 and Highlights 2 Financial Review 3 Strategic Progress 4 Summary and Outlook 3

4 Highlights Performance overview Group revenue Group UPBT 1,283.5m +19% 121.4m +21% Group UEPS 63.2p +14% Net Cash 151.m -2% Dividend 26.p +13% Drivers Transaction advisory revenues up 25% Strong UK commercial, Asia Pacific and US offset by weaker UK residential US revenue growth of 71% (like-for-like 12%) Several bolt-on acquisitions completed Savills Investment Management growth through SEB deal (AUM up 138% to 17.1bn) 4

5 Savills Diversified Business Model Defensive, Scale Businesses Revenue by Business Cyclical, High-margin Businesses Property management 31% Consultancy 18% Commercial Transactions 36% Residential Transactions 12% Investment management 3% Recurring revenue streams less exposure to transaction environment 2.4bn ft 2 under management Strong UK consultancy business 52% 48% High-return, but cyclical earnings 3:1 split Commercial vs. Residential 57:43 Commercial split Tenant rep/leasing vs. Capital markets 17.1bn AuM Combination of cyclical and less cyclical service lines 5

6 Ten Year Revenues m 1,4 1, m 665.5m 1, 48% % 47% 52% Transactional "Non-Transactional" 6

7 Broad Geographic Spread Over 3, employees in 7 offices in more than 6 countries 4,588 Employees 129 Offices 931 Employees 34 Offices 58 Employees 27 Offices 24,597 Employees 59 Offices m Revenue (15% Employees of Total) Revenue 56m (44% of Total) Revenue 13m (1% of Total) Revenue 41m (31% of Total) *Staff numbers - weighted average for 215 7

8 Business Development UK UK North America Asia Pacific Europe Investment Management Acquisitions Smiths Gore Rural property management Collier & Madge Commercial property management Cooper Brady Tenant rep, Project Management Silicon Valley Vertical Integrations Corporate Real Estate, Tampa KLG Advisors Consultancy, NY Real Facilities Tenant rep - Toronto Cordeau-Marshall Sydney, Australia, Residential Agency & Property Management Pro-Directions Christchurch, New Zealand Project Management Tagis Amsterdam Project Management SEB Asset Management Frankfurt, Singapore New Offices / Teams Residential Offices Ealing, Earls Court and Shoreditch Aberdeen Mixed services New Offices Phoenix, Dallas Sydney, Chinatown Residential Taipei 2 new Residential offices Team lifts: Singapore Tenant rep, Valuation Sydney Valuation Project Management Pan-Region New Offices Stuttgart, Barcelona Team lifts: Amsterdam & Frankfurt Office Agency, Milan Capital Markets New Offices Hong Kong 8

9 (%) (pence) (pence) ( m) ( m) (%) Continuing positive trend in financial KPIs Revenue Underlying PBT ROCE 1 1,4 1,2 1, ,78 1, Margin Underlying EPS DPS 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% - 9.3% 9.5% 8.3% 7.% 7.3% Ordinary Supplementary Return on capital employed (ROCE) = EBIT / Average of opening and closing debt + equity 9

10 Financial Review 1

11 Summary Underlying Results Year ended December ( millions) % chg Revenue 1, , % Underlying profit before tax % Underlying PBT margin 9.5% 9.3% +.2% pts Underlying basic earnings per share 63.2p 55.2p +14% Dividend per share 26.p 23.p +13% Net cash % Net assets % 11

12 Revenue and underlying PBT by business Revenue m Transaction Advisory % 618. Property Management % 39.7 Consultancy % 23.3 Investment Management +59% UPBT % % +6% % Margin 13.7% 12.4% 5.5% 5.4% 1.8% 1.7% 15.7% 24.5% * Excludes unallocated costs of 12.2m (214: 13.7m) 12

13 Revenue and underlying PBT by region m UK Asia Pacific United States +11% % Europe Revenue % +2% % UPBT (1)% % % Margin 13.% 12.8% 9.8% 8.5% 11.% 9.8% 1.8% 6.9% * Excludes unallocated costs of 12.2m (214: 13.7m) 13

14 Cashflow performance 35 3 Cash generated from operations of 141m Net cash at 31- Dec-214 UPBT Non-cash items Working capital Acquisition spend - current & deferred Capex Dividends paid Tax Net cash at 31- Dec

15 Commercial Transaction Advisory 215 Revenue 46m (+34%) 215 UPBT 56m (+26%) Asia Pacific UK Europe US Asia Pacific UK Europe US Growth +16% +17% +1% +71% Growth (2)% +21% +28% +52% Asia Pacific substantial market share growth in Hong Kong ( Shanghai-Hong Kong Stock Connect ) UK Central London Investment and leasing markets remain strong. Continued strength in UK regional investment Europe constant currency growth in revenues of 22%, driven primarily by recovery in Germany US like-for-like revenue growth of 12%. Expansion in tenant rep and occupier services 15

16 Residential Transaction Advisory 215 Revenue 159m (+5%) 215 UPBT 21m (-11%) Asia Pacific 128 UK Asia Pacific 18 UK Growth +41% (1)% Growth (16)% (1)% UK impact of reduction in secondary sales revenue mitigated by strong performances in New Homes and PRS sectors Improving position in Core London market Asia Pacific strong growth in revenues; expansion in Australia, good performance in Shanghai. Singapore remains very weak including our mid market associate Huttons 16

17 Property Management 215 Revenue 391m (+15%) 215 UPBT 21m (+13%) Asia Pacific UK Europe Asia Pacific UK Europe Growth +1% +28% +9% Growth +8% +15% +8% Area under management decreased by 2% to 2.4bn sq ft (214: 2.9bn sq ft) Asia Pacific growth in Australia, Hong Kong, China and Singapore. Pricing pressure in Hong Kong UK New commercial management contracts and growth in rural (Smiths Gore acquisition in May) and Central London (Collier & Madge). Residential Management (incl Lettings) growth offset by expansion costs Europe Underlying constant currency growth (22%). Acquisition of Tagis in the Netherlands. Restructuring costs affecting profits in Sweden and Ireland 17

18 Consultancy 215 Revenue 23m (+6%) 215 UPBT 25m (+6%) UK Asia Pacific Europe UK Asia Pacific Europe 1 Growth +9% +3% (12)% Growth +12% (15%) (5)% UK strong performances in Building, Planning and Housing & Healthcare, offset by flat performance from valuations and expansion costs Asia Pacific strong performance in Hong Kong, growth in Vietnam and Japan offset by weaker demand for feasibility studies in China and expansion costs in Australia and Singapore Europe small reductions in business in Germany against a strong comparable 18

19 Investment Management 215 Revenue 45m (+59%) 215 UPBT 11m (+148%) UK Europe UK Europe Growth +4% +132% Growth 72% 247% Fee income substantially improved through acquisition of SEB (31 st August) Assets under management increased by 138% to 17.1bn (214: 7.2bn) Profits substantially improved to 1.9m ( Potsdamer Platz effect) Rebranded from Cordea Savills to Savills Investment Management Transactions of c. 4.1bn executed on behalf of investors and 1.7bn new capital raised 19

20 Strategic Progress 2

21 Key Achievements in performance Trends Transactional Commercial Strong Commercial performances across the Globe Resilient Residential performance Consultancy / Property management Strong PM performance Expansion of Consulting teams in a number of markets Investment Management A step shift in performance, coverage (Asia) and AUM Strengthened transactional/capital raising capability 21

22 Management Activity and Focus 215 Management Delivery 216 Focus Studley integrated and further bolt-on transactions completed in the US Increased resource and performance from cross-border investment and occupier service teams Recruitment/Bolt on business development Continuation of cross border focus Further office openings and market share gains in Core London Selective growth in Core market Malaysia acquired, India opened, Philippines in train Philippines and India SEB acquisition completed plus selective hires Disposal of liquidating SEB funds. Consider US expansion 22

23 Summary and Outlook Record Performance in 215 with a good start to 216 UK: Brexit and stamp duty Occupier demand positive Europe: offers value Asia: resilience of our business model Retain current expectations for the full year 23

24 Connecting people and property since 1855