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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.
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Results
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Introduction & Highlights
Financial Review
Business Review
Management Focus
Summary & Outlook
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Group underlying profit before tax up 28% (24% in constant currency) to £38.4m
(H1 2014: £30.1m)
Highlights
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Group revenue up 27% (25% in constant currency) to £547.0m (H1 2014:
£430.8m)
US revenues up substantially on full period effect of Savills Studley, with organic
revenue growth of 24%. Several bolt-on acquisitions completed in the period
Transaction Advisory revenue growth of 55% as strong UK Commercial, Asia
Pacific and US performances offset weaker UK Residential activity
Savills Investment Management revenue growth of 10% (14% in constant
currency). Assets under Management increased 25% to €7.9bn (H1 2014:
€6.3bn) and SEB acquisition expected to close imminently
Summary Underlying Results
6 months ended June (£ millions) 2015 2014 % chg
Revenue 547.0 430.8 27.0%
Underlying profit before tax 38.4 30.1 27.6%
Underlying PBT margin 7.0% 7.0% -
Underlying basic earnings per share 20.0p 17.2p 16.3%
Interim Dividend 4.0p 3.75p 6.7%
Net (debt) / cash (24.3) 2.5 n/a
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Underlying PBT Reconciliation
6 months ended June (£ millions) 2015 2014
Reported profit before tax 26.4 24.7
Intangible assets amortisation 1.5 1.1
Share-based payment adjustment (0.6) (0.4)
Restructuring costs 0.5 0.5
Profit on disposal of available-for-sale investments - (2.2)
Acquisition related costs 10.6 6.4
Underlying profit before tax 38.4 30.1
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Global Revenue and Underlying PBT
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Transaction Advisory 258.2 166.1 55.4% 24.3 16.3 49.1%
Property Management 178.4 158.5 12.6% 7.7 7.6 1.3%
Consultancy 96.4 93.5 3.1% 7.8 8.4 (7.1)%
Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3%
Other - - - (3.9) (3.8) (2.6)%
Total 547.0 430.8 27.0% 38.4 30.1 27.6%
UPBT margin 7.0% 7.0% 9
Revenue and Underlying Profit by Region
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
UK 222.7 209.6 6.3% 20.7 20.8 (0.5)%
Asia Pacific 184.9 158.1 17.0% 12.8 12.1 5.8%
Europe 38.7 39.3 (1.5)% (1.2) 0.1 n/a
United States 86.7 11.1 681.1% 7.5 (0.7) n/a
Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3%
Other - - - (3.9) (3.8) (2.6)%
Total 547.0 430.8 27.0% 38.4 30.1 27.6%
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Constant Currency Equivalent
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
UK 222.7 209.6 6.3% 20.7 20.8 (0.5)%
Asia Pacific 176.3 158.1 11.5% 12.1 12.1 -
Europe 43.6 39.3 10.9% (1.0) 0.1 n/a
United States 79.4 11.1 615.3% 6.7 (0.7) n/a
Investment Management 14.5 12.7 14.2% 2.8 1.6 75.0%
Other - - n/a (3.9) (3.8) (2.6)%
Total 536.5 430.8 24.5% 37.4 30.1 24.3%
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Transaction Advisory Business
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Commercial Transactions
- Asia Pacific 46.1 35.7 29.1% 4.5 3.5 28.6%
- UK 41.9 30.3 38.3% 5.9 2.5 136.0%
- Europe 19.0 20.5 (7.3)% (0.1) 1.1 n/a
- United States 86.7 11.1 681.1% 7.5 (0.7) n/a
Total Commercial Transactions 193.7 97.6 98.5% 17.8 6.4 178.1%
Residential Transactions - UK 51.8 59.6 (13.1)% 5.4 8.4 (35.7)%
- Asia Pacific 12.7 8.9 42.7% 1.1 1.5 (26.7)%
Total Residential Transactions 64.5 68.5 (5.8)% 6.5 9.9 (34.3)%
Total 258.2 166.1 55.4% 24.3 16.3 49.1%
UPBT margin 9.4% 9.8%
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Non-Transactional Business
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Property Management
- Asia Pacific 111.1 99.1 12.1% 6.2 5.7 8.8%
- UK 54.4 47.9 13.6% 3.3 3.6 (8.3)%
- Europe 12.9 11.5 12.2% (1.8) (1.7) (5.9)%
Total Property Management 178.4 158.5 12.6% 7.7 7.6 1.3%
Consultancy
- UK 74.6 71.8 3.9% 6.1 6.3 (3.2)%
- Asia Pacific 15.0 14.4 4.2% 1.0 1.4 (28.6)%
- Europe 6.8 7.3 (6.8)% 0.7 0.7 -
Total Consultancy 96.4 93.5 3.1% 7.8 8.4 (7.1)%
Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3%
Total 288.8 264.7 9.1% 18.0 17.6 2.3%
UPBT margin 6.2% 6.6% 13
Commercial Transaction Advisory
• Asia Pacific – substantial market share growth in Hong Kong
• UK – Central London investment and leasing markets remain strong. Continued strength in UK regional
investment
• Europe – constant currency growth in revenues of 4%, driven primarily by Germany
• US – like-for-like revenue growth of 24%. Improved position in tenant rep and occupier services
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Commercial Transactions
- Asia Pacific 46.1 35.7 29.1% 4.5 3.5 28.6%
- UK 41.9 30.3 38.3% 5.9 2.5 136.0%
- Europe 19.0 20.5 (7.3)% (0.1) 1.1 n/a
- United States 86.7 11.1 681.1% 7.5 (0.7) n/a
Total Commercial Transactions 193.7 97.6 98.5% 17.8 6.4 178.1%
UPBT margin 9.2% 6.6%
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Residential Transaction Advisory
• UK – revenues down 13% reflecting a cautious market in the run-up to the General Election
• Improving positioning in “Core London” market
• Signs of strengthening UK market post Election
• Asia Pacific – strong growth in revenues, mainly in Australia. Singapore remains very weak
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Residential Transactions - UK 51.8 59.6 (13.1)% 5.4 8.4 (35.7)%
- Asia Pacific 12.7 8.9 42.7% 1.1 1.5 (26.7)%
Total Residential Transactions 64.5 68.5 (5.8)% 6.5 9.9 (34.3)%
UPBT margin 10.1% 14.5%
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Property Management
• Area under management increased by 3% to 2.03bn sq ft (H1 2014: 1.97bn sq ft)
• Asia Pacific – growth in Hong Kong and Singapore. Staff cost pressure in China
• UK Commercial – new commercial management contracts and growth in rural (Smiths Gore acquisition in May)
• UK Lettings – impacted by pre-election caution and office openings. Good pipeline leading into H2
• Europe – Restructuring costs affecting profits in Sweden and Ireland
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Property Management
- Asia Pacific 111.1 99.1 12.1% 6.2 5.7 8.8%
- UK 54.4 47.9 13.6% 3.3 3.6 (8.3)%
- Europe 12.9 11.5 12.2% (1.8) (1.7) (5.9)%
Total Property Management 178.4 158.5 12.6% 7.7 7.6 1.3%
UPBT margin 4.3% 4.8%
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Consultancy
• UK – strong performances in Building, Planning and Housing & Healthcare, offset by short-term fluctuations
in Development and Valuations and expansion costs. Good pipeline leading into H2
• Asia Pacific – strong performance in Hong Kong, growth in Vietnam and Japan offset by weaker demand
from developers in China and restructuring in Australia
• Europe – revenue up 6% in constant currency reflecting growth in Germany and Ireland
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Consultancy
- UK 74.6 71.8 3.9% 6.1 6.3 (3.2)%
- Asia Pacific 15.0 14.4 4.2% 1.0 1.4 (28.6)%
- Europe 6.8 7.3 (6.8)% 0.7 0.7 -
Total Consultancy 96.4 93.5 3.1% 7.8 8.4 (7.1)%
UPBT margin 8.1% 9.0%
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Investment Management
• Fee income up 10% (14% in constant currency)
• Assets under management increased by 25% to €7.9bn (H1 2014: €6.3bn)
• Management fees represented 89% of revenue
• Rebranding of Cordea Savills to Savills Investment Management
• Acquisition of SEB Asset Management AG, anticipated to complete in August
6 months ended June
(£ millions)
Revenue UPBT
2015 2014 % chg 2015 2014 % chg
Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3%
UPBT margin 17.9% 12.6%
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Pursuing US growth opportunities (acquisition/recruitment)
Management Focus
Integrating key acquisitions
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Developing and integrating Europe and UK businesses
Deliver integration of SEB from completion
Strong first half performance due to market strength in key transactional
services
Summary & Outlook
Commercial markets generally strong, residential markets showing signs
of improvement.
Emphasis on delivery from period of expansionary activity
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Savills well placed to serve worldwide occupiers and Investors