Savills plc Results for the six months ended 30 June 2016

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.

2

Results

1

2

3

4

Introduction, Highlights &

Business Development

Financial Review

Management Focus

Summary & Outlook

3

Highlights

4

Performance overview Drivers

Group Revenue £622.7m

+13.8% (cc 10.3%)

Group UPBT £42.8m

+11.5% (cc 7.8%)

Transaction advisory revenues up 5%.

Strong Residential and International

Commercial market performances offset

reduction in UK Commercial volumes.

Continued expansion in the US through

bolt-on acquisitions and recruitment.

Global property management revenue

up 23%.

Consultancy revenue up 9%.

Savills IM revenue growth of 96%

reflecting significant contribution from SEB

(acquired 31 August 2015).

Group UEPS 21.8p

+9.0%

Net Cash £34.7m

n/a

Dividend 4.4p

+10.0%

cc = constant currency

Savills Diversified Business Model

5

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

Property Management – 35%

Consultancy – 17%

Investment Management – 4%

Commercial Transactions – 32%

Residential Transactions – 12%

• Recurring revenue streams with less

exposure to transaction environment

• 1.95bn ft2 under management

• Strong Property Management business

• €17.1bn AUM

• High-return, but cyclical earnings

• 73:27 split Commercial vs. Residential

• 58:42 Commercial split Tenant rep/leasing

vs. Capital markets

44% 56%

Combination of cyclical and less cyclical service lines

Ten Year H1 Revenues

6

-

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

£m

Transactional "Non-Transactional"

48%

52%

44%

56%

£136.2m £351.6m £288.8m

53%

47%

Broad Geographic Spread

Over 31,000* employees in 700 offices in more than

60 countries

7

580 Employees

5,066 Employees

126 Offices

1,104 Employees

35 Offices

24,887 Employees

59 Offices

Revenue

£94.4m

(15% of Total)

664 Employees

28 Offices

*Staff numbers – weighted average for 2016 H1

Revenue

£255.8m

(41% of Total)

Revenue

£63.1m

(10% of Total)

Revenue

£209.4m

(34% of Total)

Business Development / Highlights

8

UK UK North

America Asia Pacific Europe Investment

Management

Growth

Initiatives /

Recruitment

New Residential

Offices in Maida

Vale & Primrose Hill

City Capital

Markets team

Licensed Leisure

team

Acquisition of

Chainbow –

Residential PM

Successful

integration of

Smiths Gore

YOPA investment

Management

changes: Joint

CEO’s

New Australia CEO

China Capital

Markets - Beijing &

Shanghai

expansion

Japan Recruitment

New COO

Retail Agency in

Paris

Office Agency in

Munich

Warsaw Industrial

team

Barcelona expansion

New Jersey

expansion

New York Retail

team

Industrial Team in

Memphis / Cleveland

Atlanta Expansion

New Offices / Teams

in North Carolina

Occupier Services

Expansion

Cross Border

Secondments

Integration of SEB

Substantial new

mandates

German Retail fund

launched

New Sydney office

New Shanghai office

Retail asset/fund

management team lift

Financial Review

9

Summary Underlying Results

10

6 months ended 30 June (£m) 2016 2015 % chg

Revenue 622.7 547.0 +13.8%

Underlying PBT 42.8 38.4 +11.5%

Underlying PBT margin 6.9% 7.0% (0.1)% pts

Underlying basic earnings per share 21.8p 20.0p +9.0%

Dividend per share 4.4p 4.0p +10.0%

Net cash / (debt) 34.7 (24.3) n/a

Net assets 346.7 313.1 +10.7%

Revenue and underlying PBT by business

11

258.2

178.4

96.4

14.0

271.1

219.0

105.1

27.5

0

50

100

150

200

250

300

2015

2016

+23%

+9%

+96%

Revenue

24.3

7.7 7.8

2.5

23.3

10.2 8.2

3.9

0

5

10

15

20

25

30

+32% +5%

+56%

Transaction

Advisory

Property

Management Consultancy

Investment

Management

UPBT

+5%

-4%

Margin 9.4% 8.6% 4.3% 4.7% 8.1% 7.8% 17.9% 14.2%

£m

Revenue and underlying PBT by region

12

231.0

184.9

86.7

44.4

255.8

209.4

94.4

63.1

0

50

100

150

200

250

300

2015

2016

Revenue

UK Asia Pacific North America

UPBT

+11%

Continental Europe

22.5

12.8

7.5

(0.5)

24.8

13.1

7.8

(0.1) -5

0

5

10

15

20

25

30 +10%

+13%

+9%

+42%

+2%

n/a

+4%

£m

Margin 9.7% 9.7% 6.9% 6.3% 8.7% 8.3% (1.1)% (0.2)%

The above excludes other costs of £2.8m (2015-H1 £3.9m) not allocated to the

operating activities of the group’s business segments

Cashflow performance

13

151

35

43

5

18 1

9

90

23 9

15

29 8

0

50

100

150

200

250

Net cash at 31-Dec-2015

UPBT Non-cash items

Working capital

Acquisition spend -

current & deferred

Net capex Net cash received

from JV & associates

Purchase of EBT shares

Dividends paid

Tax Foreign exchange

Other Net cash at 30-Jun-2016

£m

Cash used in operations of £56m

At 30 June 2016 - Net cash of £34.7m

At 30 June 2015 - Net debt of £(24.3)m

Commercial Transaction Advisory

14

2016 Revenue £197.6m (+2%) 2016 UPBT £12.9m (-28%)

North America solid revenue growth in major cities.

Europe revenue growth across the region, despite declining market volumes.

UK reduced transaction volumes in advance of Brexit referendum. Leasing remains relatively robust against

historical averages.

Asia Pacific strong growth in revenues in mainland China and Australia. Market share growth in Hong Kong

mitigating some of the effect of declining market volumes.

48.7

32.1

22.4

94.4

-

10

20

30

40

50

60

70

80

90

100

Asia Pacific UK Europe North America

Growth +6% (23)% +18% +9%

3.6 2.7

(1.2)

7.8

(2)

(1)

-

1

2

3

4

5

6

7

8

9

Asia Pacific UK Europe North America

Growth (20)% (54)% n/a +4%

Residential Transaction Advisory

15

2016 Revenue £73.5m (+14%) 2016 UPBT £10.4m (+60%)

UK prime markets impacted by stamp duty rises, secondary market volumes up in London (+14%) and

Country (+23%).

UK New Development sales strong (+26%).

Asia Pacific strong growth in revenues, in particular the prime markets of Beijing and Shanghai.

16.3

57.2

0

10

20

30

40

50

60

70

Asia Pacific UK

Growth +28% +10%

3.0

7.4

-

1

2

3

4

5

6

7

8

Asia Pacific UK

Growth +173% +37%

Property Management

16

2016 Revenue £219.0m (+23%) 2016 UPBT £10.2m (+32%)

Asia Pacific revenue growth in Hong Kong, China, Korea and Japan. Reorganisations in Japan and Australia

impacted profit growth.

UK strong growth in Residential lettings and Commercial property management. Significant contribution from

2015 acquisition of Smiths Gore.

Europe Significant contract wins across the region drives growth.

128.0

73.7

17.3

-

20

40

60

80

100

120

140

Asia Pacific UK Europe

Growth +15% +35% +34%

6.3

4.9

(1.0) (2)

(1)

-

1

2

3

4

5

6

7

Asia Pacific UK Europe

Growth +2% +48% +44%

Consultancy

17

2016 Revenue £105.1m (+9%) 2016 UPBT £8.2m (+5%)

UK strong performances in building & project consultancy, planning & development consultancy and

valuations.

Asia Pacific Revenue growth in Australia and Singapore more than offsetting weaker performance in Hong

Kong and China (development consultancy). Profits impacted by significant recruitment.

Europe revenue growth in France, the Netherlands and Poland.

81.1

16.4

7.6

0

10

20

30

40

50

60

70

80

90

UK Asia Pacific Europe

Growth +9% +9% +12%

7.2

0.2 0.8

0

1

2

3

4

5

6

7

8

UK Asia Pacific Europe

Growth +18% (80%) 14%

Investment Management

18

2016 Revenue £27.5m (+96%) 2016 UPBT £3.9m (+56%)

Strong growth following acquisition of SEB (31 August 2015).

Organic growth in revenues of 24%.

Assets under management increased by 116% to €17.1bn (2015-H1: €7.9bn).

Significant private equity mandates won in 2016.

Overall transacted €1.0bn on behalf of funds/mandates.

11.7

15.8

-

2

4

6

8

10

12

14

16

18

UK Europe

Growth

2.6

1.3

-

0.5

1.0

1.5

2.0

2.5

3.0

UK Europe

Growth +177% +41% +86% +44%

Strategic Progress

19

Management Focus

Further investment in the US, bolt-ons and recruitment

Grow transaction teams in key Asia markets

Continue investment in Property Management UK and Europe

20

New markets – eg Philippines, India, South America

Grow Savills IM and continue successful integration of SEB

Strong first half performance from diverse Group (geographical/business

line)

Summary & Outlook

Brexit impact: a near term concern for markets, but also an opportunity to

grow market share

21

Macro drivers affecting markets, but real estate fundamentals are good;

Savills well placed for current environment

Expectations remain currently unchanged but 2016 range of potential

outcomes has broadened

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