Savills plc

Results for 6 months

ending 30 June 2020

6 August 2020

Mark Ridley & Simon Shaw

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 Summary & Outlook

3

Introduction,

Highlights & Business

Development

Highlights

5

Group Revenue £791.4m

-6.6% (cc -7.0%)

Group UPBT £13.2m

-65.6% (cc -66.4%)

Drivers

Property and Facilities Management revenue up 4%,

Consultancy revenue up 1%, helping to mitigate the

significant impact of Covid-19, particularly in Q2 on global

leasing and investment market volumes

Commercial Transaction revenue reduced 23% overall

with Asia Pacific and North America particularly affected

UK Residential revenue down 8%, reflecting significant

reductions in transactional activity during lockdown,

partially mitigated by a strong recovery in June

Savills Investment Management revenue down 6% as a

result of lower performance fees. Base management fees

up 9%, with period end AUM up 11% at €20.4bn

Group UEPS 7.0p

(2019 H1: 20.9p)

Net Cash/(Debt) £9.4m

(2019 H1: -£139.0m)

Dividend 0.00p

(2019 H1: 4.95p)

cc = constant currency

Performance Overview

Savills Diversified Business Model

6

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

Property Management – 43%

Consultancy – 18%

Investment Management – 4%

Commercial Transactions – 27%

Residential Transactions – 8%

Recurring revenue streams with less

exposure to transaction environment

Strong Property Management

business

2.3 billion sq. ft under management

€20.4bn AUM within SIM

High-return, but cyclical earnings

77:23 split Commercial vs. Residential

65:35 Commercial split Tenant

rep/leasing vs. Capital markets

35%(2019-H1: 41%)

65%(2019-H1: 59%)

Revenue£512.9m

Revenue £278.5m

Balance of the Global business is now weighted to 2/3rd less cyclical revenue

7Staff numbers: weighted Average to 30 June 2020

853

Employees

35

Offices

6,496

Employees

133

Offices

2,099

Employees

44

Offices

29,613

Employees

58

Offices

Offices closed 17 March, phased

re-opening from 4 May, now over

60% open, but with restrictions in

place in California, Pennsylvania &

Texas

Offices closed 23 March,

phased re-opening from 18

May (Residential), the

remainder from 26 May, now

100% open

Offices closed from

14 March, phased re-

opening from 27 April,

now 100% open

Offices closed from 31 January,

phased re-opening from end

February, now 90% open but with

restrictions in place in Australia, Hong

Kong, Singapore & India

Operational Status During Pandemic – Covid-19

Management Actions & Response to the Pandemic

8

Cost control:

Senior Management salary cuts (20%)

Reductions in discretionary expenditure

Reduction and deferment of capital expenditure

Cancellation of 2019 final dividend

Limited application of Government support schemes

Continued strategic growth:

Focus on Consultancy and Property Management

Sector growth in Logistics, Multi-Family and Life

Sciences

Maintained bench strength of Global workforce

Opportunities for organic recruitment

Maintained Graduate programme

United Kingdom: Market Dynamics

Macro themes

Unprecedented GDP fall over first five months, (April registering -20.5%)

Extensive Government intervention from April, tapering down from August

PMI index falls to all time low and unemployment rises significantly (+650,000 in

Q2)

Return to work programme for many corporates delayed until September,

prolonging impact on City Centre activity

Market statistics

UK Commercial Investment volumes down 62% in Q2 (weakest ever)

Office take up in H1 reduced by 37% with London the most heavily

impacted market

Logistics take up rose to a record 22.5 million sq. ft, a second quarter rise of 81%

UK Housing Transaction Volumes down 25% in H1, (down 47% in Q2) although

strong recovery is underway particularly in the country markets

0

500

1,000

1,500

2,000

2,500

3,000Residential Sales -£1m+

Country London

Revenue: £298.8m | Growth: -2% YOY | Employees: 6,496 | Offices: 133

0

10

20

30

40

50

60

70

80

£ b

illio

n

Q1 Q2Q3 Q4

Source: Property Data, Savills

UK Commercial Investment Volumes 2000-2020

10

Macro themes

Asia Pacific GDP is forecast to fall by 0.2% in 2020, rebounding strongly in 2021 (7.4%)

Downside risks include the resurgence of Covid-19 in Hong Kong, Singapore and Australia and its

continued spread in India

Significant Government intervention across the region, including massive monetary easing,

interest rate reductions, creating a rebound on the regions stock markets

Market statistics

Asia Pacific H1 investment activity fell by -40%, with Retail -53%, Offices -41% and Industrial -9%

Market recovery at variable speeds, with investment volumes in China increasing by 67% in Q2

Strength maintained in Tokyo with vacancy rate of 0.4%, stronger market recovery also

experienced in Korea and Vietnam

Given the travel restrictions, cross border investment activity fell by 43% year on year

Sector weighting focused on logistics, multi-family in growth economies, with Singapore likely to

experience stronger demand due to China tensions

Asia Pacific: Market Dynamics

0

20

40

60

80

100

120

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

£b

ns

Asia Pacific Commercial Investment Volumes

Q4

Q3

Q2

Q1

-

5

10

15

20

25

30

£b

ns

Asia Pacific Commercial Investment Volume by Market

2015

2016

2017

2018

2019

1H/2020

Revenue: £279.7m | Growth: -6% YOY | Employees: 29,613 | Offices: 58

$0

$40

$80

$120

$160

$200

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

US Commercial Investment Volumes – Major Metros

Q4

Q3

Q2

Q1

$bn

North America: Market Dynamics

Macro themes

Real GDP declined 32.9% on an annualised basis in Q2

Unemployment increased to 14.7% in April (3.6% in April 2019), reflecting the

nationwide lockdown and business closures

All states have entered phased reopening at this point, but many companies

continue to implement work from home/hybrid measures

Market statistics

Many organisations have put real estate decisions on hold and national Office

Leasing volumes declined 31% compared to H1 2019

Markets most impacted include New York and San Francisco, where tenant

controlled space has swelled, but greater resilience in markets including

Washington DC and Atlanta

Commercial investment volumes fell 26% compared to H1 2019, with a sharp

decline in Q2

Strong take up across the national Logistics markets, weak demand in Retail

sector

Source: Real Capital Analytics, Savills, Includes all Commercial Property Types

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018 2019 H1 2020

US Annual Commercial Office Leasing Volume

To

tal vo

lum

e (

sq

ft;

mil

lio

n)

Source: Savills, Includes New Leases and Renewals

Revenue: £105.5m | Growth: -20% YOY | Employees: 853 | Offices: 35

Europe & Middle East: Market Dynamics

Macro themes

GDP likely to slump by 8% in 2020, the biggest fall since World War 2, with strong

rebound anticipated in 2021

Significant regional variations, with resilience experienced in Germany, Netherlands and

the Nordics, whilst Spain, France and Italy all experienced significant GDP declines

Concerns of second wave with restrictions re-imposed in Spain

Market statistics

European investment volumes in H1 fell by (-2.5%), but Q2 volumes dropped by 48%

Investment activity in Germany increased by 31.5% in H1, with Luxembourg, Portugal,

Belgium and the CEE region all recording higher H1 results

Office leasing volumes fell by 33% during H1 2020

Sector demand weighted towards Logistics, Prime Offices and Multi-Family, with Retail

experiencing the weakest demand with significant downward price correction

In the Middle East, impact on oil prices (-33% yoy) and have adversely affected markets in Dubai, with residential sales volumes reducing by -40% in Q2

-3.5

%

-4.8

%

-3.6

%

-10

.8%

-5.7

%

-10

.6%

-7.4

%

-4.4

%

-10

.6% -8

.0% -6

.1%

-9.3

%

2.0

%

1.9

%

1.5

%

1.4

%

1.3

%

1.3

%

1.1

%

1.0

%

1.1

%

1.0

%

0.9

%

0.3

%

-15.0%

-12.5%

-10.0%

-7.5%

-5.0%

-2.5%

0.0%

2.5%

5.0%

GDP Growth Forecast

2020

2020-2025 pa

0

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 2018 2019 2020

Bill

ion

Eu

ros

European Investment Volumes

Q4

Q3

Q2

Q1

5-yearH1 average

Revenue: £107.4m | Growth: -5% YOY | Employees: 2,099 | Offices: 44

Savills Investment Management: Market Dynamics

Macro themes

Significant weight of capital supporting values, with strong Q1 activity

Many transactions on hold in Q2 or values re-based, with sector focus strengthening in

Multi-Family, Logistics and prime CBD offices

All UK Retail funds gated due to valuation uncertainty

Portfolio Asset Management stress testing processes enhanced to deal with Covid-19

Rent collection in Q1 heavily impacted across most sectors, improving in Q2 except in

Retail and Hospitality, with significant re-structuring to monthly turnover rents

Business development

Capital raising has continued, growing total AUM to €20.4bn (11% increase over H1 2019),

with solid transaction pipeline

Japan Value II Fund achieved a final close at over US$500m

Continued growth of Logistics platform (€4.4bn), with significant transaction activity

Future fund and capital raising is still on track, with strong investor demand

Key strategic recruitment in Malaysia, Hong Kong and London, with further growth of our

Asian segregated mandate business

Growth of debt investment, increasingly attractive at this point of cycle, with DRC capital

winning UK’s best alternative lender of the year

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 2016 2017 2018 2019 2020

EU

R m

Savills IM Capital Raising

Half-year Full-year

Revenue: £30.5m | Growth: -6% YOY | Employees: 288 | Offices: 15

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Target Actual Actual

Percentage AUM outperforming respective benchmarks to Q1 2020

65%

Last

3 yrs

79%

Last

5 yrs

90%

Service Innovation and continued focus on ESG

14

Smart Building consultancy:

Thermal scanning

Touch free access

Amenity areas

Safe desk booking

Enhanced ventilation

Robotic cleaning

UV radiation

Services adapted:

Virtual viewings (8,000 in UK alone)

Remote auctions, (220 properties – 80%

success rate)

Sustainability consultancy:

Energy Brokerage

Technical Energy Consultancy

Waste Consultancy

Energy and

Infrastructure Development

Carbon offsetting

Financial Review

Summary Underlying Result

16

6 months ended 30 June (£m) 2020 2019 % chg

Revenue 791.4 847.0 (6.6)%

Underlying PBT 13.2 38.4 (65.6)%

Underlying PBT margin 1.7% 4.5% (2.8)% pts

Underlying basic earnings per share 7.0p 20.9p (66.5)%

Dividend per share - 4.95p n/a

Net cash/(debt) 9.4 (139.0) n/a

Net assets 536.6 461.5 +16.3%

Revenue and underlying PBT by business

17

346.3325.7

142.5

32.5

278.5

337.8

144.6

30.5

0

50

100

150

200

250

300

350

400

2019

2020

+4%

+1%

(6)%

Revenue

9.9

16.2

11.5

5.6

(14.7)

17.7

10.2

4.3

-20

-15

-10

-5

0

5

10

15

20

+9%

(11)%

(23)%

Transaction

Advisory

Property

Management Consultancy

Investment

Management

UPBT

(20)%

n/a

Margin 2.9% n/a 5.0% 5.2% 8.1% 7.1% 17.2% 14.1%

£m

The figures in these charts

exclude costs of £4.3m in

2020-H1 (2019-H1 £4.8m) not

allocated to the operating

activities of the group’s

business segments

Combined revenue and UPBT growth of 2% and -3% respectively

Revenue and underlying PBT by region

18

303.6 298.4

131.7113.3

298.8279.7

105.5 107.4

0

50

100

150

200

250

300

350

2019

2020

Revenue

UK Asia Pacific North America

UPBT

(2)%

CEME

22.2

15.5

6.7

(1.2)

15.0

11.8

(4.9) (4.4)

-10

-5

0

5

10

15

20

25(32)%

(6)%

(20)% (5)%

(24)%

n/a

n/a

£m

Margin 7.3% 5.0% 5.2% 4.2% 5.1% n/a n/a n/a

The figures in these charts

exclude costs of £4.3m in

2020-H1 (2019-H1 £4.8m) not

allocated to the operating

activities of the group’s

business segments

£28.5m

£9.4m

£13.2m

£27.1m

£5.3m

£7.1m

£27.2m

£16.2m

£8.3m £6.5m

£13.6m-

£10m

£20m

£30m

£40m

£50m

£60m

£70m

£80m

Net cash b/f UPBT Non-cash items Workingcapital

Acquisitions Capex Investmentcash flows

Purchase ofEBT shares

Tax Dividends Other Net cash c/f

Cashflow performance

191 Cash generated from/(used in) operations include “principal elements of lease payments” which are included within financing activities in the statutory cash flow

Cash generated from/(used in) operations1 of

£13.1m (2019 H1: -£125.1m)

£139.0m

Adjusting for timing of tax payments

Reported net cash at 30 June £9.4m

Tax payments timing benefit £(61.2)m

“Normalised” net debt at 30 June £(51.8)m

(At 30th June 2019 net debt was £139m)

£38.4m £6.0m £2.0m

£169.5m £5.1m £15.2m £14.0m £13.5m £36.4m £5.6m£73.9m £(139.0)m

2019-H1

comparative

Commercial Transaction Advisory

20

2020 Revenue £212.3m (-23%) 2020 UPBT -£17.9m (2019-H1 £5.0m)

Asia Pacific impacted by early onset of COVID-19 in Greater China and Singapore and lockdowns in Australia and Japan,

partially offset by growth in Korea and Vietnam

UK robust performance, particularly outside London, reflecting a very strong pre-lockdown performance

CEME reduced activity in Southern Europe, partially offset by strong performances in Germany and the low countries

North America last major region to go into lockdown resulting in a delayed return to normal activity levels, particularly in New

York and San Francisco

41.530.9

38.1

101.8

-

20

40

60

80

100

120

Asia Pacific UK CEME North America

Growth (39)% (2)% (11)% (23)%

(4.4)

0.9

(9.8)

(4.6)

(12)

(10)

(8)

(6)

(4)

(2)

-

2

Asia Pacific UK CEME North America

Growth n/a (31)% n/a n/a

Residential Transaction Advisory

21

2020 Revenue £66.2m (-8%) 2020 UPBT £3.2m (-35%)

UK both second-hand and new homes sales down, but signs of recovery towards the end of the period

UK Private Rented Sector revenues up by 87% year-on-year

Asia Pacific significant reductions in Australia and Singapore partially offset by growth in Mainland China and Thailand

52.9

13.3

0

10

20

30

40

50

60

UK Asia Pacific

Growth (8)% (10)%

1.6 1.6

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

UK Asia Pacific

Growth (54)% +14%

Property Management

22

2020 Revenue £337.8m (+4%) 2020 UPBT £17.7m (+9%)

Asia Pacific strong growth in Hong Kong, Japan, Singapore and Vietnam mitigated the effect of reduced revenues in

China, Australia and Korea. Cost savings contributed to margin improvement in the region overall

UK growth in Commercial Property and Facilities Management revenue was partially reduced by a decline of 11% in

Residential Property Management revenues driven by fewer residential lettings transactions during lockdown

CEME revenue growth in Spain and the Middle East offset by declines in Sweden and Portugal

190.0

110.1

37.7

-

20

40

60

80

100

120

140

160

180

200

Asia Pacific UK CEME

Growth +6% +2% (1)%

12.4

5.1

0.2-

2

4

6

8

10

12

14

Asia Pacific UK CEME

Growth +44% (25)% (75)%

Consultancy

23

2020 Revenue £144.6m (+1%) 2020 UPBT £10.2m (-11%)

UK strong performances in Housing, Building & Project Consultancy, Rural and Development outweighed reductions in

Financial Services, Lease Consultancy and Planning Consultancy

Asia Pacific growth in Australia, Singapore, Japan and South Korea largely offset slight reductions in Greater China due to

a reduced volume of valuation and research consultancy during lockdowns

CEME strong performances in Germany, the Netherlands, Sweden and Poland, largely mitigated the effect of reductions in

activity elsewhere

North America post-acquisition period (since March) of Macro Consultants (Project Management)

92.2

32.4

16.3

3.7

0

10

20

30

40

50

60

70

80

90

100

UK Asia Pacific CEME North America

Growth (1)% (1)% (1)%

6.1

2.02.4

-0.3-1

0

1

2

3

4

5

6

7

UK Asia Pacific CEME North America

Growth (27)% +100% +14%n/a n/a

Investment Management

24

2020 Revenue £30.5m (-6%) 2020 UPBT £4.3m (-23%)

Revenues base management fees represented approximately 82% (HY 2019: 75%) of gross revenues and grew by

9% during the period. This growth helped mitigate the 78% reduction in performance fee income

Performance 90% of funds (by AUM) continued to exceed their benchmark returns on a five year rolling basis, and this

track record contributed to significant capital raising activity, albeit reduced in the context of Covid-19 which made for

challenging market conditions

Assets under management increased by 11% to €20.4bn (H1 2019: €18.3bn)

12.7

15.3

2.5

-

2

4

6

8

10

12

14

16

18

UK CEME Asia Pacific

Growth

1.3

2.8

0.2

-

0.5

1.0

1.5

2.0

2.5

3.0

UK CEME Asia Pacific

Growth(3)%(9)% (10)%(41)%(11)% (33)%

Summary & Outlook

26

A resilient performance, particularly in the UK and Asia Pac

Continued growth in key Global markets and Less Transactional businesses

Financial strength to withstand further headwinds

2020 outlook depends upon trajectory of potential recovery through H2

Summary & Outlook

Maintain bench strength with continued strategic recruitment

Signs of recovery are emerging in a number of markets/sectors

Q&A