Acquisition of DTZ Monday, 5 December 2011
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Acquisition of DTZ Monday, 5 December 2011
Transaction overview
• UGL has acquired the trading operations of DTZ for £77.5 million (A$119 million¹) from the
Transaction Administrator of DTZ
highlights
• Another key step in UGL’s journey to become the world leader in global property services
• Global real estate services company with a strong brand and operations throughout Asia, the
UK, Europe, Middle East and the Americas
• Long-term, trusted service provider with its beginnings in 1784
DTZ
overview • Leading market position in China and top 5 in the UK property services market²
• Best in class valuation, research and investment management capabilities
• Over 4,700 permanent employees in 145 cities across 43 countries
• Combined annual revenue of A$5.1 billion
Impact on • Approaching 53,000 personnel, including contractors worldwide
UGL • Operating across approximately 240 offices in 43 countries
• One of the broadest vertically integrated property services offerings globally
• Expected to be marginally earnings per share3 accretive from FY2012 and growing strongly
Financial thereafter
impact
• 100% debt funded with new debt facilities
¹ Assumes A$:£ exchange rate of 0.652 as at 2 December 2011
2 Top Agents 2011 Survey, Estates Gazette, 24 September 2011
3 Excluding non-recurring items
2
Strategic rationale
Increased exposure to high growth markets in Asia, especially China, India and
Singapore
Enhances UGL’s ability to provide an integrated end-to-end service offering to
clients globally and to global clients seeking a single solutions provider
Expanded geographic footprint covering the UK, Europe and Asian markets
Iconic brand with reputation for service excellence across a blue chip client base
Continued trend to outsource and globalisation of clients creating favourable
industry dynamics and significant opportunities for growth
3Complementary platform
UGL Services DTZ
• Broad based corporate real estate
services capability
• Predominantly facilities
management services • Additional real estate services
include:
• Limited CRE services
Service
offering
• Client base of blue chip corporates
+ — Investment & Asset
Management
and government agencies
— Consulting & Research
• Client base of blue chip corporates
and government agencies
Geographic
footprint
• Predominantly North America and Asia
+ • Predominantly Asia, UK and Europe
Employee
Base
• 35,000 employees, including
contractors + • 4,700 permanent employees
4Service offering
DTZ’s capabilities range across the full spectrum of corporate real estate services
Occupational Investment &
Professional Investment Consulting &
& Development Valuation Asset
Services Agency Research
Markets Management
• Advice and • Property and • Valuation, appraisal • Advice on the sale, • Working in • Consultancy
transaction facilities and due diligence acquisition and partnership with services for public
execution on behalf management services funding of real clients to achieve and private sector
of landlords and estate their specific risk / clients
developers • Project return objectives
management and from their property • Delivery of complex
• Management of building consultancy portfolios development and
changing services regeneration
accommodation projects
requirements on
behalf of occupiers • DTZ Research
provides insight and
analysis into today’s
global real estate
markets
Source: DTZ 2011 Annual Report 5Geographic footprint
DTZ operates in 145 cities across 43 countries
UK & Ireland
The Americas 2 countries
16 cities
2 countries 1,400 employees Asia Pacific
21 cities
200 employees 10 countries
36 cities
2,150 employees
CEMEA
29 countries
72 cities
950 employees
DTZ Operations
Source: DTZ 2011 Annual Report
¹ CEMEA includes Central Europe, the Middle East and Africa 6Earnings breakdown
DTZ is diversified across multiple service lines and geographies
Revenue by Service Revenue by Geography
Investment & Asset Management
The Americas
Consulting & Research 5%
6%
5%
Investment
Agency
11%
Occupational &
Development
Markets UK & Ireland
Asia Pacific
35% 38%
31%
Valuation
18%
CEMEA
Professional Services
25%
26%
Total FY 2011: £341m
Source: DTZ 2011 Annual Report. Based on fiscal year ended 30 April 2011
7Strategic initiatives
UGL has identified a number of strategic initiatives to drive performance and growth
Increased focus on high-growth integrated end-to-end corporate solutions
mandates
Continued investment in China and broader Asian business to solidify leading
market position
Leverage cross-selling opportunities across services and regions
Investment in technology systems to drive cost savings and enhance service
capability
Expand Investment & Asset Management business into Asia and the Americas
8Integration plan
UGL has a strong track record of successfully integrating acquisitions
• Integration through a staged approach with initial transition period of 100 days
Integration
- Model successfully adopted by UGL in past acquisitions
• Combined businesses to be led by Robert Shibuya, Group President UGL
Management Services and headquartered in Los Angeles
• Key existing DTZ management team committed to UGL
9Impact on UGL
Acquisition builds scale in UGL’s property services business
and enhances UGL’s geographic footprint
Pro forma FY2011 revenue by division Pro-forma FY2011 revenue by geography
1
Asia EMEA
9% 7%
Resources
18%
Americas
Property Services 19%
37%
Rail
24%
Australia
65%
Infrastructure
21%
Total FY2011: A$5.1bn
Source: UGL 2011 Annual Report, DTZ 2011 Annual Report. Based on UGL fiscal year ending June and DTZ fiscal year ending April. Average April 2011 year ending A$:£ exchange rate of 0.611 10
1 EMEA refers to Europe, the Middle East and AfricaImpact on UGL Services
Acquisition expands UGL’s CRE capability and significantly enhances
UGL’s geographic footprint in property services
Pro-forma FY2011 revenue by service Pro-forma FY2011 revenue by geography
1
EMEA
CRE 19%
28%
Americas
51%
Asia Pacific
Facilities Management 30%
72%
Total FY2011: A$1.9bn
Source: UGL 2011 Annual Report, DTZ 2011 Annual Report. Based on UGL fiscal year ending June and DTZ fiscal year ending April. Average April 2011 year ending A$:£ exchange rate of 0.611 11
1 EMEA refers to Europe, the Middle East and AfricaPeople
Combined UGL workforce approaching 53,000 people
including nearly 40,000 people in property services
Pro-forma people by division – UGL Pro-forma people by geography – UGL Services
Resources EMEA1
12% 4%
Rail
5%
Infrastructure Asia Pacific
5% 29%
Property Services Americas
78% 67%
Total of 52,500 employees, including contractors
Source: UGL management, DTZ 2011 Annual Report 12
1 EMEA refers to Europe, the Middle East and AfricaFinancial impact and funding
Acquisition expected to be accretive1 from FY2012 with conservative gearing maintained
• Acquisition expected to be marginally earnings per share1 accretive from FY2012, growing more strongly
thereafter
• 100% debt funded with new debt facilities
• Pro-forma leverage and gearing ratios still maintained at conservative levels
Pre-acquisition Pro-forma acquisition
Net debt as at 30-Jun-2011 $178m $317m
Net debt / (net debt + equity) 13.2% 21.4%
Net debt / EBITDA 0.6x 1.0x
1 Excluding non-recurring items 13UGL’s property services journey
DTZ is a key step in UGL’s journey as the emerging leader in global property services
1998: UGL acquires Kilpatrick Green
2002: UGL acquires KFPW
2005: UGL acquires Premas expanding into Asia
2006: UGL acquires Equis establishing a presence in the US and India
2007: UGL acquires Unicco expanding into facilities management in North America
2011: UGL acquires DTZ completing its global footprint and integrated property services
offering
14Important notice
This presentation and any oral presentation accompanying it:
• is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in UGL Limited (“UGL”) or to retain
any securities currently held;
• is for information purposes only, is in summary form and does not purport to be complete;
• is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives,
financial situation or needs of any particular investor, potential investor or any other person. Such persons should consider seeking
independent financial advice depending on their specific investment objectives, financial situation or needs when deciding if an
investment is appropriate or varying any investment;
• may contain forward looking statements. Any forward looking statements are not guarantees of future performance. Any forward looking
statements have been prepared on the basis of a number of assumptions which may prove to be incorrect or involve known and unknown
risks, uncertainties and other factors, many of which are beyond the control of UGL, which may cause actual results, performance or
achievements to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes
will not differ materially from these statements. Any forward looking statement reflects views held only as of the date of this presentation.
Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, UGL does not undertake any
obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on
which any such statement is based.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,
opinions and conclusions contained in this presentation and any oral presentation accompanying it. To the maximum extent permitted by
law, UGL and its related bodies corporate, and their respective directors, officers, employees, agents and advisers, disclaim and exclude all
liability (including, without limitation, any liability arising from fault or negligence) for any loss, damage, claim, demand, cost and expense of
whatever nature arising in any way out of or in connection with this presentation and any oral presentation accompanying it, including any
error or omission therefrom, or otherwise arising in connection with any reliance by any person on any part of this presentation and any oral
presentation accompanying it.
15You can also read
