Savills plc

Results for the year ended 31 December 2017

15 March 2018

Disclaimer: Forward-looking statements

2

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.

Results

1 Introduction, Highlights & Business Development 2 Financial Review 3 Management Focus &

Summary & Outlook

3

Introduction, Highlights & Business Development

4

Highlights

5

Performance Overview Drivers

Group Revenue£1,600.0m

+10.7% (cc 7.3%)

Group UPBT £140.5m

+3.5% (cc 0.6%)

Transaction advisory revenues up 13%,

reflecting strong performance

throughout Asia and UK Commercial

and resilient UK Residential markets

Property Management revenue up 9%,

Consultancy revenue up 14%

Significant expansion in Europe and

North America, through

acquisitions and recruitment

Savills IM revenue ahead of

expectations

Group UEPS 75.8p

+4.6%

Net Cash £98.6m

(2016: £187.8m)

Dividend 30.2p

+4.1%

cc = constant currency

Ten Year Revenues

6

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

£m

Transactional "Less-Transactional"

Total Revenue

£904.8m

Total Revenue

£1,600.0m

Total Revenue

£568.5m

47%46%

48%

46%

40%38%

38%40%

35%37% 53%54%52%

54%60%62%62%60%65%63%

Ten Year Return on Capital Employed

71 Return on capital employed (ROCE) = Adjusted EBIT / Average of opening and closing debt + shareholders’ equity

The effect of adjusting for the investment in:

New York capital markets

Czech Republic

Gives an underlying ROCE of 30.4%.

0%

5%

10%

15%

20%

25%

30%

35%

40%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Return on capital employed

2017

ROCE

29%

10 Year Average

ROCE

26%

1

Savills Diversified Business Model

8

Defensive, Scale Businesses Revenue by Business Cyclical, High-Margin Businesses

Property Management – 32%

Consultancy – 17%

Investment Management – 4%

Commercial Transactions – 36%

Residential Transactions – 11%

• Recurring revenue streams with less

exposure to transaction environment

• 1.95bn ft2 under management

• Strong Property Management business

• €16.5bn AUM

• High-return, but cyclical earnings

• 77:23 split Commercial vs. Residential

• 54:46 Commercial split Tenant rep/leasing

vs. Capital markets

47%53%

Combination of cyclical and less cyclical service lines

Broad Geographic Spread

9

580Employees

5,554Employees

124Offices

1,206Employees

45Offices

26,894Employees

67Offices

Revenue

£224.8m

(14% of Total)

775Employees

30Offices

*Staff numbers – weighted average for 2017

Revenue

£627.1m

(39% of Total)

Revenue

£182.4m

(12% of Total)

Revenue

£565.7m

(35% of Total)

Over 34,000* employees and over 600 offices in 70 countries

Recent Acquisitions in Europe

10

Larry Smith (Italy)

Net Revenue c. €7m

80 staff

Aguirre Newman (Spain / Portugal)

Net Revenue €40m

400 staff

Map shows current offices of Aguirre Newman and Larry Smith. Savills has existing offices in Madrid, Barcelona and Milan

Financial Review

11

Summary Underlying Result

12

Year ended 31 December (£m) 2017 2016 % chg

Revenue 1,600.0 1,445.9 +10.7%

Underlying PBT 140.5 135.8 +3.5%

Underlying PBT margin 8.8% 9.4% (0.6)% pts

Underlying basic earnings per share 75.8p 72.5p +4.6%

Dividend per share 30.2p 29.0p +4.1%

Net cash 98.6 187.8 (47.5)%

Net assets 441.7 407.0 8.5%

Dividends

13

Year ended 31 December (pence) 2017 2016 % chg

Interim ordinary (“Less Transactional”) 4.65p 4.40p +6%

Final ordinary (“Less Transactional”) 10.45p 10.10p +3%

Supplemental (“Transactional”) 15.10p 14.50p +4%

Total distribution (per share) 30.20p 29.00p +4%

Total distribution (£m) 41.2 38.9 +6%

Revenue and Underlying PBT by Business

14

660.8

472.8

240.3

72.0

746.2

513.1

273.1

66.5

0

100

200

300

400

500

600

700

800

2016

2017

+9%

+14%

(8)%

Revenue

80.0

23.6 25.9

17.6

81.5

25.331.0

13.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

+7% +20%

(24)%

Transaction

Advisory

Property

Management Consultancy

Investment

Management

UPBT

+13%

+2%

Margin 12.1% 10.9% 5.0% 4.9% 10.8% 11.4% 24.4% 20.0%

£m

The figures in these charts

exclude revenues of £1.1m

and other net costs of £10.6m

(2016 £11.3m) not allocated

to the operating activities of

the group’s business

segments

Combined revenue and UPBT growth of 10% and 14% respectively

Revenue and Underlying PBT by Region

15

578.3

485.9

211.1170.6

626.0

565.7

224.8182.4

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

2016

2017

Revenue

UK Asia Pacific North America

UPBT

+8%

Continental Europe

72.1

42.6

18.913.5

76.5

55.6

7.811.2

0

10

20

30

40

50

60

70

80

90+6%

+16%

+6%+7%

+31%

(17)%(59)%

£m

Margin 12.5% 12.2% 8.8% 9.8% 9.0% 3.5% 7.9% 6.1%

The figures in these charts

exclude revenues of £1.1m

and other net costs of £10.6m

(2016 £11.3m) not allocated

to the operating activities of

the group’s business

segments

Cashflow Performance

16

188

99

141 1613

12

117

3217

40

34 7

0

50

100

150

200

250

300

350

400

Net cash at31-Dec-2016

UPBT Non-cashitems

Workingcapital

Cash flowsfrom

investments

Acquisitionspend -

current &deferred

Capex Purchase ofEBT shares

Dividendspaid

Tax Foreignexchange

Net cash at31-Dec-2017

£m

Cash generation from operations of £145m

(2016:£117.8m)

Acquisition spend £117m (2016: £27.1m)

Commercial Transaction Advisory

17

2017 Revenue £573.0m (+15%) 2017 UPBT £56.4m (-5%)

Asia Pacific strong growth in revenues and profitability in Hong Kong, Japan, Australia and Mainland China.

UK significant growth in Investment and Central London & International teams.

Europe revenue growth in both Tenant Rep/Leasing and Investment teams in particular Germany, Netherlands, Spain and Italy. New start-ups in

Czech Republic and developing logistics expertise in Netherlands and Poland affected profits.

North America Significant reduction in government and large/complex corporate transactions. Investment in Capital Markets and other team hires

significantly affected profits.

168.4

101.678.2

224.8

-

50

100

150

200

250

Asia Pacific UK Europe North America

Growth +30% +18% +9% +6%

26.9

17.2

4.5

7.8

-

5

10

15

20

25

30

Asia Pacific UK Europe North America

Growth +31% +17% (10)% (59)%

Residential Transaction Advisory

18

2017 Revenue £173.2m (+7%) 2017 UPBT £25.1m (+21%)

Asia Pacific strong growth in Hong Kong high end Residential sales and Singapore project sales.

UK revenue growth in second-hand sales in both London and outside the capital.

UK new development revenues up reflecting higher average unit values, despite lower volumes.

44.3

128.9

0

20

40

60

80

100

120

140

Asia Pacific UK

Growth +16% +4%

6.4

18.7

-

2

4

6

8

10

12

14

16

18

20

Asia Pacific UK

Growth +94% +7%

Property Management

19

2017 Revenue £513.1m (+9%) 2017 UPBT £25.3m (+7%)

Asia Pacific revenue growth in Hong Kong and Mainland China.

UK strong underlying revenue growth in Residential Lettings and Commercial Property Management.

Europe revenue growth in the Netherlands and Ireland, supported by the acquisition of Larry Smith (Italy).

300.9

165.8

46.4

-

50

100

150

200

250

300

350

Asia Pacific UK Europe

Growth +10% +4% +16%

15.4

11.7

(1.8)(4)

(2)

-

2

4

6

8

10

12

14

16

18

Asia Pacific UK Europe

Growth +6% +4% +18%

Consultancy

20

2017 Revenue £273.1m (+14%) 2017 UPBT £31.0m (+20%)

UK Strong performances in Building & Project Consultancy, Hotels & Leisure and Business Space.

Asia Pacific Valuation and Research Consultancy growth in Mainland China and Hong Kong.

Europe growth in Germany, France, the Netherlands and Spain (predominantly valuations).

204.9

45.722.5

0

50

100

150

200

250

UK Asia Pacific Europe

Growth +12% +21% +17%

23.9

5.12.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

UK Asia Pacific Europe

Growth +8% +113% +54%

Investment Management

21

2017 Revenue £66.5m (-8%) 2017 UPBT £13.3m (-24%)

As anticipated, revenue/profit affected by the decrease in disposal activity from the liquidating SEB German Open

Ended Funds vs 2016.

Transactions of circa £4.8bn (2016: £4.4bn) executed, including £2.58bn disposals and £2.23bn acquisitions.

AUM increased to £14.6bn (2016: £13.9bn); new capital offsetting liquidation distributions of SEB funds to date.

24.8

35.3

6.4

-

5

10

15

20

25

30

35

40

UK Europe Asia Pacific

Growth

5.0

6.5

1.8

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

UK Europe Asia Pacific

Growth-11%-4% -31%-22%0% 0%

22

Company Business Total

Investment

Cost

Realised

to date

Net

Investment

Percentage

Ownership

Notes

“Digital Hybrid”

Residential Agent

£13.5m £3.6m £9.9m 22.8% Grown to become 10th largest UK

Estate Agent, clear no.2 to

PurpleBricks amongst all hybrids

Digitally enabled Tenant

Rep for co-working /

serviced offices

£0.75m N/A £0.75m 100% Autonomous start up within Savills

AI approach to real

estate valuation

£50k N/A N/A 5% Stake taken in consideration for use

of Savills data and market know how

to prove models

Highly accurate 3D

digital city-scape

models to speed up

planning process

£4m N/A £4m 33% Seed funding roll out of VuCity

business model

Management Focus &

Summary & Outlook

23

Integrate acquisitions and review new opportunities

24

Continue to invest and grow Property Management and Consultancy (e.g. Europe)

Continue expansion of Savills Investment Management’s platform

Management Focus

Deliver succession plan

Deliver on investments in the US business

A strong 2017 despite market challenges

Solid start to 2018

25

The Board’s expectations for 2018 currently remain unchanged

Summary & Outlook

Heightened uncertainty (markets, geopolitical risks and rising interest rates) likely to temper strong transaction volumes in some markets

Connecting people and

property since 1855