savills corporate overview 2009

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Corporate Overview 2009 Savills plc

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Page 1: Savills Corporate Overview 2009

Corporate Overview 2009 Savills plc

Page 2: Savills Corporate Overview 2009

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

Page 3: Savills Corporate Overview 2009

Savills has over 200

offices & associates throughout the

Americas, Europe, Asia Pacific, Africa and the Middle East

Page 4: Savills Corporate Overview 2009

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

Page 5: Savills Corporate Overview 2009

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.”

Page 6: Savills Corporate Overview 2009

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

Page 7: Savills Corporate Overview 2009

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

Page 8: Savills Corporate Overview 2009

Core values

Page 9: Savills Corporate Overview 2009

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

Page 10: Savills Corporate Overview 2009

Corporate structure

Savills plc

Savills Private Finance

Cordea Savills LLP

SavillsCommercial

Limited

SavillsEurope

SavillsAmericas

Savills FinanceHoldings

Savills(L&P) Limited

SavillsAsia Pacific

Page 11: Savills Corporate Overview 2009

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

Page 12: Savills Corporate Overview 2009

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%

Page 13: Savills Corporate Overview 2009

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%

Page 14: Savills Corporate Overview 2009

Savills worldwide

19,834 employees in over 200 offices

*Guardian Facilities Management employees - 9,070

Page 15: Savills Corporate Overview 2009

Broad geographic diversification

Revenue by location 2008Overseas revenue now £254.4m, and 45% of total group revenue (1998 – zero)

Page 16: Savills Corporate Overview 2009

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

Page 17: Savills Corporate Overview 2009

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

Page 18: Savills Corporate Overview 2009

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

Page 19: Savills Corporate Overview 2009

Group revenue

Revenue (£)m

Page 20: Savills Corporate Overview 2009

Underlying profit before taxation

Underlying profit (£)m

Page 21: Savills Corporate Overview 2009

Share price

Share price (pence)*

• as at 31 December

• * adjusted for 2 for 1 share split in 2006

Page 22: Savills Corporate Overview 2009

Underlying basic earnings per share

Underlying basic earnings per share (pence)*

* adjusted for 2 for 1 share split in 2006

Page 23: Savills Corporate Overview 2009

Long term track record of delivering returns

Page 24: Savills Corporate Overview 2009

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

Page 25: Savills Corporate Overview 2009

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

Page 26: Savills Corporate Overview 2009

Market position

We offer world class services to clients from our wide range of regional platforms

Page 27: Savills Corporate Overview 2009

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

Page 28: Savills Corporate Overview 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

Page 29: Savills Corporate Overview 2009

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.

Page 30: Savills Corporate Overview 2009

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

Page 31: Savills Corporate Overview 2009

“ 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

Page 32: Savills Corporate Overview 2009

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