Annual Report 2010 Servcorp Limited ABN 97 089 222 506 Highlights 1 2010 in review 2 Servcorp locations 4 Global expansion 6 About Chairman’s message 7 CEO statement 8 Servcorp New locations 9 The environment 10 Servcorp offers the world’s finest Serviced and Virtual Office solutions. Founded in Community service 11 Sydney in 1978, Servcorp now operates an Servcorp services 12 international network of prime CBD locations ITS 13 throughout Australia, New Zealand, Japan, China, South-East Asia, India, Europe, the The Servcorp team 14 Middle East, United Kingdom and United Corporate governance 16 States including the prestigious Chifley Directors’ report 26 Tower, Sydney; Shiroyama Trust Tower, Tokyo; Emirates Towers, Dubai; and Louis Financial report 43 Vuitton Building, Paris. Servcorp’s office and Auditor’s report 100 IT solutions enable companies of any size Shareholder information 102 to operate with the corporate presence, IT, infrastructure and support of a multi national Corporate information 104 organisation, without having the associated overheads normally required to do so. A Servcorp Smart Office® is a fully managed corporate office suite in a prime CBD building. It includes a dedicated, local receptionist, access to a worldwide network of meeting rooms, secretarial support on hand and exclusive access to an online portfolio of business services and tools. A Servcorp Virtual Office® gives clients access to the presence, facilities and services of a Servcorp Smart Office®, whilst they work from home or another location. 2010 Highlights ▪ Servcorp global expansion… new VIP floors begin to hatch ▪ New regions… USA, UK, Saudi Arabia, Kuwait ▪ Equity capital raising… $80 million to fund expansion ▪ Australian Export Awards Winner… Large Services category ▪ NSW Export Awards Winner… Large Services category 1 2010 We stretch our wings Net profit before tax ($ millions) Revenue ($ millions) Actual Immature floors Forecast Mature floors Forecast 47.3 44.6 $228.6 $219.1 $190.1 35.2 34.1 $186.0 $167.5 $185.8 $168.8 $145.9 $160.8 $159.6 $141.7 15.0 2.9 $4.2 $6.7 $4.3 $9.5 $9.2 06 07 08 09 10 11 06 07 08 09 10 11 12 months to June 2010 12 months to June 2010 $2.9 million $168.8 million 12 months ended 30 June 2006 2007 2008 2009 2010 $’000 $’000 $’000 $’000 $’000 Revenue & other income 145,941 167,518 190,142 228,646 168,837 Net profit before tax 35,207 34,124 44,578 47,275 2,875 Net profit after tax 25,375 26,332 33,834 34,097 2,006 Net operating cash flows 35,345 39,984 51,192 43,024 8,798 Cash & cash equivalents 58,213 55,401 73,716 83,958 131,948 Interest earning financial assets 5,035 9,266 - - - Net assets 107,261 111,152 127,651 145,291 212,610 Earnings per share $0.316 $0.327 $0.420 $0.427 $0.022 Dividends per share $0.105 $0.230 $0.200 $0.250 $0.100 2 2011 Fly Servcorp floors and locations (at 30 June) 121 108 77 71 67 64 64 57 56 55 50 42 06 07 08 09 10 11 Locations Floors Forecast locations Forecast floors Servcorp geographic spread (at 30 June 2010) United States of America (2) Kuwait (1) Saudi Arabia (1) Qatar ( 2) Bahrain (2) United Arab Emirates (3) United Kingdom (1) Belgium (2) France (4) Japan (20) (17) Australia (3) New Zealand (4) Singapore (6) China (3) Hong Kong (2) Malaysia (3) Thailand 3 Locations opened in the: 2010 financial year 2011 financial year Servcorp...seeing beauty, colour and growth across the globe Australia Adelaide Japan Levels 24 and 30 Sydney Westpac House Tokyo Level 29 Chifley Tower 91 King William Street Level 11 Aoyama Palacio Tower 2 Chifley Square 3-6-7 Kita-Aoyama Minato-ku Canberra Levels 56 and 57 MLC Centre Level 11 St George Centre Level 14 Hibiya Central Building 19-29 Martin Place 60 Marcus Clarke Street 1-2-9 Nishi-Shimbashi Minato-ku Level 26, 44 Market Street Level 1 The Realm Level 20 Marunouchi Trust Tower – Main 18 National Circuit 1-8-3 Marunouchi Chiyoda-ku Levels 21 and 22 201 Miller Street New Zealand Level 7 Wakamatsu Building North Sydney 3-3-6 Nihonbashi-Honcho Chuo-ku Auckland Level 32, 101 Miller Street Level 27 PWC Tower Level 8 Nittochi Nishi-Shinjuku Building North Sydney 188 Quay Street 6-10-1 Nishi-Shinjuku Shinjuku-ku Suite 2201 Level 22 Tower Two Level 20 ASB Bank Centre Level 9 Ariake Frontier Building Tower B Westfield Bondi Junction 135 Albert Street 3-7-26 Ariake Koto-ku 101 Grafton Street Bondi Junction Wellington Level 28 Shinagawa Intercity Tower A Level 16 Vodafone on the Quay 2-15-1 Konan Minato-ku Suite F Level 1 Octagon 157 Lambton Quay 110 George Street Level 32 Shinjuku Nomura Building Parramatta 1-26-2 Nishi-Shinjuku Shinjuku-ku United States Level 9 Avaya House Level 21 Shiodome Shibarikyu Building 123 Epping Road of America 1-2-3 Kaigan Minato-ku North Ryde Chicago Levels 16 and 27 Shiroyama Trust Tower Level 5 Nexus Building 155 North Wacker Drive 4-3-1 Toranomon Minato-ku Norwest Business Park 42nd floor 4 Columbia Court Level 45 Sunshine 60 Baulkham Hills 300 North LaSalle Street 3-1-1 Higashi-Ikebukuro Toshima-ku Suite 4925 49th floor Melbourne Level 27 Tokyo Sankei Building Level 27, 101 Collins Street Washington 1-7-2 Otemachi Chiyoda-ku 1717 Pennsylvania Avenue NW Level 40, 140 William Street Suite 1025 10th floor Level 18 Yebisu Garden Place Tower 4-20-3 Ebisu Shibuya-ku Brisbane 1155 F Street NW Yokohama Level 36 Riparian Plaza Suite 1050 10th floor Level 10 TOC Minato-Mirai 71 Eagle Street Atlanta 1-1-7 Sakuragi-cho Naka-ku Level 24 AMP Place Terminus 200 Nagoya 10 Eagle Street 3333 Piedmont Road Suite 2050 20th floor Level 40 Nagoya Lucent Tower Perth 6-1 Ushijima-cho Nishi-ku Level 28 AMP Tower 1075 Peachtree Street NE Level 4 Nagoya Nikko Shoken Building 140 St Georges Terrace Suite 3650 36th floor 3-2-3 Sakae Naka-ku Level 18 Central Park New York City Osaka 152-158 St Georges Terrace Financial Times Building 1330 Avenue of the Americas Level 9 Edobori Center Building 23rd floor 2-1-1 Edobori Nishi-ku McLean Level 19 Hilton Plaza West Office Tower 2-2-2 Umeda Kita-ku 1650 Tysons Boulevard 15th floor Level 4 Shinsaibashi Plaza Building 3-12-21 Minami-Senba Chuo-ku Fukuoka Level 15 Fukuoka Tenjin Fukoku Seimei Building 1-9-17 Tenjin Chuo-ku Level 2 NOF Hakata Ekimae Building 1-15-20 Hakata-Ekimae Hakata-ku 4 Servcorp...seeing beauty, colour and growth across the globe China and Hong Kong Shanghai Level 23 Citigroup Tower 33 Huayuanshiqiao Road Level 29 Shanghai Kerry Centre 1515 Nanjing West Road Doha, Qatar Levels 14 and 15 Chengdu Commercialbank Plaza Level 18 West Bay Shangri-La Office Tower 9 Binjiang East Road Jeddah, Kingdom of Saudi Arabia Beijing Level 9 Jameel Square Level 24 Tower 3 Corner of Talhia Street and Al China Central Place Andalus Street 77 Jianguo Road Chaoyang South East Asia District Riyadh, Kingdom of Saudi Arabia Singapore Level 19 Tower E2 Level 18 Penthouse and Level 42 Oriental Plaza Al Faisaliah Office Tower Suntec Tower Three 1 East Chang An Avenue King Fahad Highway 8 Temasek Boulevard Dongcheng District Olaya District Levels 30 and 31 Hangzhou Kuwait City, Kuwait Six Battery Road Level 1 Lyra Level 18 Sahab Tower 2 Science and Technology Salhia Kuala Lumpur, Malaysia Park Road Level 36 Menara Citibank Singapore-Hangzhou Science Beirut, Lebanon 165 Jalan Ampang & Technology Park HEDA Suite 2029 Level 2 Beirut Souks Level 20 Hong Kong Louis Vuitton Building Menara Standard Chartered Level 19 Two International Allenby Street 30 Jalan Sultan Ismail Finance Centre Downtown Beirut 8 Finance Street Central Bangkok, Thailand Levels 8 and 9 Suite 901 Level 9 The Hong Europe 1 Silom Road Bangrak Kong Club Building 3A Chater Road Central Paris, France Level 29 The Offices at Level 5 Louis Vuitton Building Centralworld Suite 1202 Level 12 101 Avenue des Champs 999/9 Rama 1 Road One Peking Elysées Pathumwan 1 Peking Road Tsimshatsui Kowloon Levels 2 and 3 Manila, Philippines 17 Square Edouard VII Suite 22C Level 22 Tower One Ayala Triangle Middle East Level 2 Actualis Building 6767 Ayala Avenue (Corner 21 and 23 Boulevard Paseo de Roxas Avenue) Abu Dhabi, Haussmann Makati City United Arab Emirates Level 4 London, United Kingdom Al Mamoura Building B Level 17 Dashwood House India Muroor Road 69 Old Broad Street Mumbai Dubai, Brussels, Belgium Levels 7 and 8 United Arab Emirates Levels 20 and 21 Vibgyor Towers Levels 41 and 42 Bastion Tower G Block Emirates Towers 5 Place du Champ de Mars C62 Bandra Kurla Complex Sheikh Zayed Road Istanbul, Turkey Hyderabad Manama, Levels 5 and 6 Level 7 Maximus Towers Kingdom of Bahrain Louis Vuitton Orjin Building Building 2A Levels 22 and 41 West Tower 15 Bostani Sokagi Tesvikiye Mindspace Complex Bahrain Financial Harbour (Corner Adbi Ipecki Cadessi) Hi-Tech City King Faisal Highway Nisantasi 5 Servcorp has a strong track record of global organic growth since its IPO in 1999. At the time of the IPO, Servcorp operated in 8 countries with 33 floors. In October 2009 it operated in 13 countries, with 67 floors. Over the past 30 years of operations, Servcorp has made a significant investment in proprietary business infrastructure and IT platforms which has transformed the range and depth of services available to Servcorp’s clients.