savills corporate overview 2009
TRANSCRIPT
Corporate Overview 2009 Savills plc
About Savills
leading global real estate advisor with over
200 offices19,000 people
Throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.
Savills is a
employing
worldwide
Savills has over 200
offices & associates throughout the
Americas, Europe, Asia Pacific, Africa and the Middle East
Key facts
History
1855 - Founded1987 - Savills becomes a limited
company1988 - Savills obtains a full
listing on the London Stock Exchange, and became Savills plc
1998 - Savills property service subsidiaries rebranded as FPDSavills acquired a majority shareholding in
the German, French & Spanish companies
2000 - Savills plc acquisition of First Pacific Davies
2004 - FPDSavills global rebrand to Savills
2006/7 - Acquisition of Hamilton Osborne King in
Ireland and Granite Partners LLC, US real estate investment banking firm
2008 - New Group CEO, Jeremy Helsby
Size & scale
19,000 employees, over 200 offices
Breadth of services
Key property sectors:residential, office, industrial, retail, leisure, healthcare, rural, hotel property, mixed use development schemes
Core service offerings: consultancy, research, acquisition/disposal, leasing, valuation, buildings services and project management, property management, asset management, facilities management, corporate finance advice, insolvency advice, rating, rent review capital allowances, planning. We also offer specialist fund and investment management, real estate finance, and private financial services
Mission statement
“Savills culture of innovation, passion and pride in client service drives us to be the real estate advisor of choice in our chosen markets.”
Our vision
“Our vision is to become the real estate advisor of choice in our chosen markets. We recognise that to achieve this goal we must continually think forward, anticipate trends and above all understand what those trends mean for our clients and our business.”Jeremy Helsby - Group Chief Executive
Building scale and brand recognition in our chosen global markets
Continued expansion/integration of global cross-border investment teams
Exploring selectively new opportunities in the strongest emerging economies
Expand the residential brand globally
Providing a ‘best in class’ client service
Increasing our non-transactional revenue/profit
Our strategy
Core values
Core business streams
Savills plc
Commercial, residential and agricultural agency.Investment purchases and sales.
Professional property services including:Valuation building & housing consultancy landlord & tenant rating planning research
Management of commercial and residential assets.Advice and services to occupiers.Land and farm management.
Investment management of commercial and residential property portfolios for institutional and professional investors.
Mortgage broking, financial planning and corporate finance advisory services.
Transactional ConsultancyProperty& facility
management
Fundmanagement
Financialservices
Corporate structure
Savills plc
Savills Private Finance
Cordea Savills LLP
SavillsCommercial
Limited
SavillsEurope
SavillsAmericas
Savills FinanceHoldings
Savills(L&P) Limited
SavillsAsia Pacific
Corporate structure
Peter Smith Chairman
Jeremy HelsbyGroup Chief Executive
Simon ShawGroup Chief Financial Officer
Rupert Sebag-MontefioreChairman &Chief Executive
Robert McKellarChief Executive
Simon HopeChairman
Mark RidleyChairman & Chief Executive
John LyonsChief Executive
Mark HarrisManaging Director
John Partridge Executive Chairman
Savills plc
SavillsAsia Pacific
SavillsEurope
SavillsCommercial Limited
SavillsAmericas
SavillsPrivate Finance
Cordea Savills LLPSavills (L&P)Residential & AgricultureProperty Service
Diversification business stream
Revenue 2008Non-transactional revenue of £360m (63% of total) Consultancy and Property/Facilities Management contributed 92% of total group profit
Properties &facilities
management34%
Shareholders
ShareholdersTop 10 investorsLloyds TSB Group:* 10.96%
Standard Life Investments: 7.81%
Artemis Investment Mgmt: 5.98%
Artisan Partners:** 4.86%
Legal & General Inv Mgmt: 4.26%
Blackrock MLIM: 3.46%
Third Avenue Mgmt:** 2.73%
Schroder Investment Mgmt: 2.20%
Scottish Widows: 2.03%
Majedie Asset Mgmt: 1.74%
* Employee Benefits Trust
**US shareholders
*Employees hold 6.0% of sharesDirectors hold 1.3%Quest and EBT hold 7.0%
Savills worldwide
19,834 employees in over 200 offices
*Guardian Facilities Management employees - 9,070
Broad geographic diversification
Revenue by location 2008Overseas revenue now £254.4m, and 45% of total group revenue (1998 – zero)
1998 to 2008 Transformation of Savills
2008 1998
Revenue £568m £72m
Staff numbers 19,834* 870
% revenue from UK 55% 100%
Number of offices 182 39
Countries 36 1*9,070 Guardian employees
Savills produced a resilient performance in unprecedented global property markets
Group revenue £568.5m (2007 - £650.5m)
Underlying profit before tax £33.2m (2007 - £85.5m)
Underlying basic EPS up 18.1p (2007 - 46.1p)
Total dividend for 2008 of 9p (2007 - 18p)
Strong balance sheet
Net cash at year end £45.7m with committed borrowing facilities to 2011
2008 Financial highlights
Underlying business stream reporting
Underlying Underlying Revenue profit/(loss) margin (%)
(£)m (£)m (£)m
Transactional 208.4 3.2 1.5Consultancy 131.8 16.3 12.4Property & facilities management 191.4 14.2 7.4Fund management 19.5 3.6 18.5Financial services 17.4 (1.0) (5.7)Holding co. - (3.1) -
Total 568.5 33.2 5.8
Group revenue
Revenue (£)m
Underlying profit before taxation
Underlying profit (£)m
Share price
Share price (pence)*
• as at 31 December
• * adjusted for 2 for 1 share split in 2006
Underlying basic earnings per share
Underlying basic earnings per share (pence)*
* adjusted for 2 for 1 share split in 2006
Long term track record of delivering returns
Number 1 turnover - for six consecutive years
No. 1 Top Agent by UK Turnover No. 4 European agent by European Turnover
No. 6 Global agent by Worldwide Turnover
Number 1 turnover - for nine consecutive years
No. 1 Top Agent by UK Turnover No. 3 European agent by European Turnover
No. 4 Global agent by WorldwideTurnover
Market position
We offer world class services to clients from our wide range of regional platforms
External endorsements
TARGETjobs Employer of Choice Graduate Survey - First Place 2006, 2007, 2008, 2009
RTPI Planning Consultancy of the year 2008 - Winner
Best Business Superbrand in the Real Estate sector
Graduate Employer of Choice - winner 2006, 2007, 2008, 2009
Industry related awards
Over the years we have been recognised as ‘best in class’ in a diverse range of disciplines
Irish Property Awards 2008 Retail Agency Team of the Year Investment Agency Team of the Year Residential Agency of the Year
Scottish Awards 2008 Professional Team of the Year
North West Awards 2008 Investment Team of the Year
North West Awards 2007 Industrial Team of the Year Retail Team of the Year
Scottish Awards 2006 Investment Team of the Year
Property Week Awards 2005 Investment Team of the Year
Property Week Awards 2003 Investment Team of the Year
Estate Gazette Awards 2008 Industrial and Distribution Team of the Year
Estate Gazette Awards 2007 Retail and Leisure Team of the Year
BCSC Purple Apple Marketing Awards 2008
2008 SCEPTRE Awards Shopping Centre Managing Agent of the year
Corporate responsibility
Savills CR Programme centres on four key themes:
EnvironmentSavills is committed to reducing the impact of our operations on the environment and raising the environmental awareness of our people.
PeopleSavills will continue to invest in its most valuable resources - its people, by providing training and career development opportunities, encouraging work-life balance, reinforcing equality and diversity in the workplace.
ClientsSavills will respond to changes in the marketplace to offer services that meet the needs of our clients, while staying accountable to our shareholders.
Community Savills will play a part in contributing positively to the communities in which it operates.
Focus on long-term relationships
Best in class
Pragmatic
Get the deal done
Commitment
Relationship driven
Bright
Outgoing
Our priority is the client
Direct
Objective
Comments from client survey
“ At the core of Savills is a certain type – commercial, direct, you don’t get the fluffy stuff. Good straight forward advice. They’re straight forward, clever, well
educated people.”
“ Savills is consistent. They are entrepreneurial – they are thinking for us and thinking of new ideas. They are good and easy people to deal with – they fit well into our teams. They’re bright and outgoing. And they do understand our business – how all the parts fit together.”
“ Savills is populated by experienced, well respected, knowledgeable individuals. They are quite well supported by more junior teams, and they’ve done well to keep the teams together. There is real strength and depth. I get the feeling people respect each other across disciplines.”
Client testimonials
Vision for the brand
Savills equals = The best people Passionate Hungry Fun Creative Charismatic Entrepreneurial
The Savills brand is: Premium Dynamic Special and distinctive Aspirational Global