SERVCORP LIMITED — AGM Information 2011

Nov 15, 2011

Servcorp Limited Annual General Meeting

Presented by Alf Moufarrige, CEO

& Thomas Wallace, CFO

Wednesday 16 November 2011

1

Operational Highlights - FY 2011

• Revenue up 8% to $182.06M
• Mature floor NPBT up 24% to $31.19M
• Immature floor loss of $27.98M
• NPBT of $3.04M up 6% on FY 2010
• Strong unencumbered cash balances of $91.27M at 30 June 2011
• Solid net operating cash flow of $18.79M
• Strong AUD reduced the cost of funding overseas Capex
• FY 2011 - biggest expansion year ever - 40 new floors
• 116 floors in 51 cities in 21 countries at 30 June 2011

Operational Highlights - FY 2011

Total Floors by Region 30 June 2011

Total Floors = 116

Financial Results – FY 2011

	FY 2011	FY 2010	%	ConstantCurrency %
	$AUD	$AUD
	000's	000's
Total Revenue	182,056	168,837	8%	13%
Mature Floor Net Profit Before Tax	31,191	25,126	24%
Total Immature Floor Loss	(27,983)	(20,102)	39%
Office Squared Gain / (Loss)	(172)	(2,149)
Total Net Profit Before Tax	3,036	2,875	6%	(52%)

Financial Results – FY 2011

	As at30 June 2011	As at30 June 2010	%
	$AUD000's	$AUD000's
Cash Balance (unencumbered)	91,269	121,030	(25%)
Net Assets	192,612	212,610	(9%)
Net Tangible Assets (per share)	$1.81	$2.01	(10%)
	FY 2011	FY 2010	%
Earnings Per Share (cents per share)	2.5cps	2.2cps	14%
Total Dividends (cents per share)	10.00cps	10.00cps

Mature Business – FY 2011

• Mature result of $31.19M (guidance - $30.00M)
• Challenging trading conditions in FY 2011:
  • natural disasters in Japan and Australia
  • turmoil on global financial markets
• Management is satisfied with the overall result
• 6 floors became mature in FY 2011
• Revenue and margins in H2 FY 2011 improved in several regions
• Australia & Southeast Asia continue to perform strongly
• Average mature floor occupancy increased to 79%

Immature Business – FY 2011

Immature Floors by Region 30 June 2011

Number of Floors

Immature Business – FY 2011

• Immature floor losses were $27.98M for FY 2011
• Offsetting immature floor losses were cash incentives received of $5.64M
• New floor Capex and Opex costs in line with budget expectations
• Executed majority of leases near the bottom of the market
• Servcorp should be competitive if global business confidence recovers
• Europe and the USA recovering slower than anticipated
• Immature floors in these regions have been adversely affected
• Management continues to have confidence in the Servcorp business model
• Focus on growing immature revenue

Global Expansion – Update

Total Floors Opened by Region 24 months ended 30 June 2011

Global Expansion – Update

• Satisfied with overall progress of new floor rollouts
• In FY 2012 we will slow the pace of expansion and consolidate
• Expect to open no more than 15 floors in FY 2012
• 68 floors expected to open in 36 months to 30 June 2012

Trading Update – Q1 FY 2012

• Trading conditions continued to be challenging in Q1 FY 2012
• Global financial markets continue to be highly volatile
• This continues to impact business confidence
• Mature and Immature results for Q1 FY 2012 are in line with guidance
• Opened two new floors in Q1 FY 2012:
  • Shanghai
  • Guangzhou

FY 2012 Outlook

• Management is cautiously optimistic about the outlook for Servcorp
• Anticipate revenue and margins to continue to improve during FY 2012
• Reaffirm guidance for FY 2012:
  • Mature floor NPBT $37.00M
  • Immature floor loss of approximately $20.00M

[This forecast assumes currencies remain constant and global financial markets remain stable]

Dividend FY 2011

Dividends of 10.0 cents per share fully franked paid in FY 2011

Dividend Outlook – FY 2012

Dividends of 15.0 cents per share expected to be paid for FY 2012 (Franking level expected to be at least 50%)

[This payment is subject to currencies remaining constant, global financial markets remaining stable and no unforeseen circumstances]