Servcorp's Creative Team

SERVCORPANNUAL REPORT 2016 LIMITED EDITION INTERNATIONAL FASHION MOGUL PAR IS NEW YORK LONDON For personal use only 5 STAR RUNWAY TO THE WORLD Fashion Week is Global Servcorp is Global The most glamorous 5 Star operation that presents in the best light around the world. For personal use only Servcorp Limited – ABN 97 089 222 506 SERVCORPANNUAL REPORT 2016 LIMITED EDITION 2016 FASHION PROGRAM Results in review 2 23 Servcorp’s creative team Bespoke locations 4 24 Corporate governance Chairman’s letter 6 36 Directors’ report CEO’s message 9 46 Remuneration report Global footprint 11 58 Auditor’s independence declaration Global communications 14 59 Financial report Green initiative 17 97 Auditor’s report Community service 19 99 Shareholder information Business solutions 20 101 Corporate information BEST FASHION SHOWS 2016 DUBAI HONG KONG TOKYO DOHA LONDON For personal use only Servcorp’s Aim To be the world’s finest Serviced Offices, providing IT and commercial services second to none, giving our clients a commercial advantage, paying our people reasonable wages and giving our shareholders an acceptable return on the funds they invest. Runway to the world 1 DESIGNED FOR SUCCESS Net profit before tax (million) Servcorp Geographic Spread (floors) FY10 $2.9 FY11 $3.0 28 Australia FY12 $18.3 23 Japan FY13 $27.6 22 United States FY14 $34.3 10 China 10 Saudi Arabia 09 UAE FY15 $41.2 07 Singapore 04 Thailand 04 Qatar FY16 04 United Kingdom $48.8 04 New Zealand 03 Malaysia 03 Hong Kong 03 Turkey FY17 (projected) $56.0 03 Belgium 03 Bahrain For personal use only 03 Iran 02 Philippines 02 France 02 India 01 Lebanon 01 Kuwait 2 Servcorp Annual Report 2016 12 months ended 30 June 2012 2013 2014 2015 2016 $’000 $’000 $’000 $’000 $’000 Revenue & other income 200,785 207,995 242,247 277,378 328,601 Net profit before tax 18,329 27,630 34,257 41,211 48,840 Net profit after tax 14,801 21,271 26,336 33,141 39,722 Net operating cash flows 32,003 27,092 40,214 59,928 60,575 Cash & investments 104,334 99,758 108,788 114,451 114,586 Net assets 198,709 207,900 217,101 241,898 261,020 Earnings per share $0.150 $0.216 $0.268 $0.337 $0.404 Dividends per share $0.150 $0.150 $0.200 $0.220 $0.220 Revenue (millions) Servcorp floors and locations(as at 30 June) 350 160 157 $328.6 151 140 145 300 136 134 139 $277.4 132 131 120 124 117 122 250 $242.2 110 100 200 $200.8 $208.0 80 150 60 100 40 50 20 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY17 Locations Floors Locations forecast Floors forecast Servcorp offices (as at 30 June) 6000 5800 5397 5000 4920 4275 4000 3837 3645 3000 For personal use only 2000 1000 FY12 FY13 FY14 FY15 FY16 FY17 Offices Offices forecast Runway to the world 3 KUWAIT KUWAIT CITY BESPOKE LOCATIONS – Level 18, Sahab Tower ACROSS THE GLOBE KINGDOM OF SAUDI ARABIA DAMMAM – Levels 20 & 22, Al Hugayet Tower IS A – Level 21, Al Khobar Gate Tower “Every day RIYADH – Level 6, Al Akaria Plaza FASHION SHOW – Level 18, Al Faisaliah Tower – Level 1, The Business Gate AND THE WORLD – Level 29, Olaya Towers JEDDAH IS THE – Level 9, Jameel Square COCO CHANEL Runway” – Level 26, Kings Road Tower – Level 7, Al Murjanah Tower UNITED STATES UNITED KINGDOM UNITED ARAB EMIRATES OF AMERICA LONDON DUBAI BOSTON – Level 17, Dashwood House – Level 23, Boulevard Plaza – Level 14, One International Place – Level 18, 40 Bank Street, Canary – Levels 41 & 42, Emirates Towers NEW YORK CITY Wharf – Levels 21 & 28, Al Habtoor Business – Level 23, 1330 Avenue of the – Level 30, The Leadenhall Building Tower Americas – Level 1, Devonshire House, – Level 54, Almas Tower – Level 26, The Seagram Building One Mayfair Place ABU DHABI – Level 40, 17 State Street – Level 4, Al Mamoura FRANCE – Level 36, Etihad Towers – Level 85, One World Trade Center PARIS – Level 17, World Trade Center PHILADELPHIA – Level 5, 101 Avenue des Champs – Level 37, BNY Mellon Center Elysées WASHINGTON D.C. – Level 2, 21 Boulevard Haussmann IRAN – Level 10, 1717 Pennsylvania Avenue – Levels 7, 8 and 9, Park Building BELGIUM – Level 10, 1155 F Street INDIA MIAMI BRUSSELS – Levels 20 & 21, Bastion Tower MUMBAI – Level 27, Southeast Financial Center – Level 8, Vibgyor Towers ATLANTA – Level 4, European Quarter – Schuman HYDERABAD – Level 20, Terminus 200 – Level 7, Maximus Towers – Level 36, 12th & Midtown LEBANON TYSONS CORNER BEIRUT THAILAND – Level 15, Corporate Office Center – Level 2, Beirut Souks BANGKOK Tysons II Louis Vuitton Building – Levels 8 & 9, 1 Silom Road CHICAGO – Level 29, The Offices at Centralworld – Level 42, 155 North Wacker Drive TURKEY – Level 18, Park Ventures Ecoplex – Level 49, 300 North LaSalle ISTANBUL HOUSTON – Levels 5 & 6, Louis Vuitton MALAYSIA Orjin Building – Level 39, Bank of America Center KUALA LUMPUR – Level 8, Tekfen Tower – Level 41, Williams Tower – Level 36, Menara Citibank DALLAS QATAR – Level 23, NU Tower 2 – Level 6, JP Morgan International DOHA – Level 33, ILHAM Tower Plaza III – Levels 14 & 15, – Level 10, Rosewood Court Commercialbank Plaza PHILIPPINES MANILA IRVINE – Level 22, Tornado Tower – Level 17, 6750 Ayala Avenue Office – LevelFor personal use only 8, Irvine Towers – Level 21, Burj Doha Tower LOS ANGELES – Level 22, Tower One & Exchange – Level 40, Figueroa at Wilshire KINGDOM OF BAHRAIN Plaza SAN FRANCISCO MANAMA – Level 27, 101 California Street – Levels 22 & 41, West Tower Bahrain Financial Harbour – Level 49, 555 California Street – Level 12, Diplomatic Commercial Offices Tower(DCO) 4 Servcorp Annual Report 2016 CHINA SINGAPORE SHANGHAI SINGAPORE – Level 23, Citigroup Tower – Penthouse Level & Level 42, – Level 29, Shanghai Jing An Suntec Tower Three Kerry Centre – Level 30, Six Battery Road – 5/F Somekh Building, – Level 39, Marina Bay Financial Rockbund Centre CHENGDU – Level 26, PSA Building – Level 18, Shangri-La Office – Level 8, The Metropolis Tower 2 Tower – Level 24, CapitaGreen – Level 28, One Aerospace Center AUSTRALIA BEIJING PERTH – Level 24, China Central Place – Levels 15 & 28, AMP Tower – Level 19, Oriental Plaza – Level 11, Brookfield Place – Level 26, Fortune Financial Center ADELAIDE HANGZHOU – Levels 24 & 30, Westpac House – Level 3, Jiahua International SYDNEY Business Center – Level 29, Chifley Tower GUANGZHOU – Level 36, Gateway – Level 54, Guangzhou IFC – Levels 56 & 57, MLC Centre HONG KONG – Level 26, 44 Market Street – Level 32, 101 Miller Street CENTRAL North Sydney – Level 19, Two International – Level 22, Tower Two Westfield Finance Centre Bondi Junction – Level 9, The Hong Kong – Level 1, The Octagon Club Building Parramatta KOWLOON – Level 15, Deloitte Building – Level 12, One Peking Road Parramatta – Level 9, Avaya House North Ryde – Level 5, Nexus Norwest Baulkham Hills WOLLONGONG – Ground floor, iC Enterprise 1, Innovation Campus University of Wollongong BRISBANE – Level 36, Riparian Plaza – Level 19, 10 Eagle Street – Level 27, Santos Place CANBERRA JAPAN – Level 1, The Realm TOKYO – Level 9, Nishi Building – Level 11, Aoyama Palacio Tower MELBOURNE – Level 14, Hibiya Central Building – Levels 18 & 27, 101 Collins Street – Level 20, Marunouchi Trust Tower – – Level 40, 140 William Street Main – Level 2, 710 Collins Street – Level 1, Marunouchi Yusen Building Docklands – Level 7, Wakamatsu Building – Level 2, Riverside Quay Southbank – Level 8, Nittochi Nishi-Shinjuku HOBART Building – Level 6, Reserve Bank Building – Level 9, Ariake Frontier Building – Level 28, Shinagawa Intercity Tower A NEW ZEALAND – Level 32, Shinjuku Nomura Building AUCKLAND – Level 21, Shiodome Shibarikyu – Levels 26 & 27, PWC Tower Building – Level 31, Vero Centre – Level 27, Shiroyama Trust Tower WELLINGTON – Level 45, Sunshine 60 – Level 16, Vodafone on the Quay – Level 27, Tokyo Sankei Building – Level 18, Yebisu Garden Place Tower YOKOHAMA – Level 10, TOC Minato Mirai NAGOYA For personal use only – Level 40, Nagoya Lucent Tower – Level 4, Nikko Shoken Building OSAKA – Level 9, Edobori Center Building – Levels 18 & 19, Hilton Plaza West – Level 4, Cartier Building Shinsaibashi Plaza FUKUOKA – Level 15, Fukuoka Tenjin Fukoku Seimei Building – Level 2, NOF Hakata Ekimae Building Runway to the world 5 The Chairman’s Letter Your Board is pleased with Servcorp’s overall performance in 2016. The year saw record levels for revenue, net profit before tax and net profit after tax. evenue for the year was $328.6 million, an increase of 19% on 2015. Net profit before tax was $48.8 million, an increase of 19%, and above guidance. Net profit after tax was $39.7 million, an increase of 20%, with earnings per share of 40.4 cents. Revenue and profit growth was achieved across most geographic segments. Servcorp continued to expand organically, but with a measured approach, adding 381 offices and increasing capacity by 7%. During the 2016 financial year the business generated record net operating cash surpluses of $60.6 million, up slightly on 2015. Cash and investment balances at 30 June 2016 were $114.6 million; $99.7 million of this balance was unencumbered and the Company has negligible debt. Having such strong cash balances uniquely positions Servcorp to take advantage of opportunities should they arise, particularly in turbulent markets. Directors have declared a final dividend of 11.0 cents per share, 50% franked. RThis final dividend brings total dividends for the year to 22.0 cents per share, resulting in a payout to shareholders of approximately $21.65 million. In 2017 we project net profit before tax to increase by not less than 15% to $56 million, and again expect to grow office capacity by approximately 7%. Directors anticipate the level of dividends for the 2017 financial year will be 22.0 cents per share (11.0 cents in each half).

Load more