Half Year 2026 Savills PLC Earnings Call

August 13, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Simon Shaw: Okay. Good morning, everyone. Welcome to Margaret Street, and thank you for joining us this morning, despite the hot Central Line for some people. My name is Simon Shaw, CEO, and I am joined by Nick Sanderson, our Group Chief Financial Officer. Today I am absolutely delighted to be reporting on a very strong H1 for Savills. Also to really recognize the fact that we are at an inflection point, a genuine inflection point for this business, having completed the Eastdil Secured Savills transaction 2 weeks ago. We will probably spend a bit of time on both of those today. Maybe I have changed it. It has. The format for today is pretty standard. I will take you through the highlights of our performance during the H1. Nick will take you through the financial highlight details.

Simon Shaw: Okay. Good morning, everyone. Welcome to Margaret Street, and thank you for joining us this morning, despite the hot Central Line for some people. My name is Simon Shaw, CEO, and I am joined by Nick Sanderson, our Group Chief Financial Officer. Today I am absolutely delighted to be reporting on a very strong H1 for Savills. Also to really recognize the fact that we are at an inflection point, a genuine inflection point for this business, having completed the Eastdil Secured Savills transaction two weeks ago. We will probably spend a bit of time on both of those today. Maybe I have changed it. It has. The format for today is pretty standard. I will take you through the highlights of our performance during the H1. Nick will take you through the financial highlight details.

Speaker #2: Okay, good morning, everyone. Welcome to Margaret Street, and thank you for joining us this morning, despite the hot Central Line for some people. My name is Simon Shaw, CEO, and I'm joined by Nick Sanderson, our Group Chief Financial Officer.

Speaker #2: And today, I'm absolutely delighted to be reporting on a very strong first half for Savills. And also, to really recognize the fact that we're at an inflection point—a genuine inflection point—for this business, having completed the Eastill Secured Savills transaction two weeks ago.

Speaker #2: So we'll probably spend a bit of time on both of those today. Have you asked if anything has changed? It has. The format for today is pretty standard.

Speaker #2: I'll take you through the highlights of our performance during the first half. Nick will take you through the financial details. I also want to spend a little time looking at the context for our performance, which you'll see in a moment, as it is very important.

Simon Shaw: I also want to spend a little time looking at the context for our performance, which you will see in a moment, is very important. I will then remind you of the strategy which we talked about back in March, together with some of the steps we have taken, both in business development standalone at Savills, but also with Eastdil Secured Savills. Then we will try and do a bit of crystal ball gazing for 2026 as a whole. Let us crack on. This is a very strong set of results in conditions that were far from easy in many of the markets in which we operate. I am particularly delighted with them. You can see from the charts on the right of this slide that all the major metrics are moving in the right direction, and this is essentially driven by 3 factors.

Speaker #2: I'll then remind you of the strategy which we talked about back in March, together with some of the steps we've taken, both in Business Development Standalone and Savills, but also with Eastill Secured Savills.

Speaker #2: And then we'll try and do a bit of crystal ball gazing for 2026 as a whole. So, let's crack on. This is a very strong set of results in conditions that were far from easy in many of the markets in which we operate.

Speaker #2: So, I'm particularly delighted with them. You can see from the charts on the right of this slide that all the major metrics are moving in the right direction.

Speaker #2: And this is essentially driven by three factors. First of all, our transactional business is generally improving, which was—and I'm particularly glad to see—significantly assisted by a strong performance in our North American occupier-facing leasing market.

Simon Shaw: First of all, our transactional business generally improving, which was, and I am particularly glad to see, significantly assisted by a strong performance in our North American occupier-facing leasing market. Our capital transaction business also significantly improved, despite the fact, and this is important, you will see in a minute, that we had very little exposure to the driver of world capital transaction volumes in the US market during the period. Secondly, our less transactional business grew as we anticipated, and you will see later on with significant improvement to the bottom line. Finally, and these 2 are connected actually, we start to see the benefits of our cost saving initiatives through last year. We have also worked hard to broaden and deepen our bench during this period with some key recruitment and team lifts.

Simon Shaw: First of all, our transactional business generally improving, which was, and I am particularly glad to see, significantly assisted by a strong performance in our North American occupier-facing leasing market. Our capital transaction business also significantly improved, despite the fact, and this is important, you will see in a minute, that we had very little exposure to the driver of world capital transaction volumes in the US market during the period. Secondly, our less transactional business grew as we anticipated, and you will see later on with significant improvement to the bottom line. Finally, and these two are connected actually, we start to see the benefits of our cost saving initiatives through last year. We have also worked hard to broaden and deepen our bench during this period with some key recruitment and team lifts.

Speaker #2: But our capital transaction business also significantly improved, despite the fact—and this is important; you'll see in a minute—that we had very, very little exposure to the driver of world capital transaction volumes in the US market during the period.

Speaker #2: Secondly, our less transactional business grew as we anticipated, and you'll see later on a significant improvement to the bottom line. And finally—and these two are connected, actually—we started to see the benefits of our cost-saving initiatives through last year.

Speaker #2: We've also worked hard to broaden and deepen our bench during this period with some key recruitment and team lifts. And, of course, Eastdil Secured Savills joined the group on the 31st of July, just two weeks ago.

Simon Shaw: Eastdil Secured Savills joined the group on 31 July, just two weeks ago. Frankly, we are both delighted now to be able to get on with business. You will see later that they actually, unsurprisingly, had a very strong H1 too. I will talk a bit about what we are doing in terms of integration. Finally, on this slide, reflecting our confidence and the normal operation of our ordinary dividend, we have declared an interim dividend of 7.8p, up 5.5% year on year. Let us start by looking at the capital market context for our performance. What these charts show is the 12-month rolling investment market volumes quarter by quarter since 2020. The reason we do that, it is the best way to minimize background noise and seasonality from the data.

Speaker #2: And frankly, we're both delighted now to be able to get on with business. You'll see later that they actually, unsurprisingly, had a very strong first half, too.

Speaker #2: And I'll talk a bit about what we're doing in terms of integration, etc. Finally, on this slide—reflecting our confidence and the normal operation of our ordinary dividend—we declared an interim dividend of 7.8p, up 5.5% or so year on year.

Speaker #2: So, let's start by looking at the capital market context for our performance. What these charts show is the 12-month rolling investment market volumes, quarter by quarter, since 2020.

Speaker #2: And the reason we do that is it's the best way to minimize background noise and seasonality from the data. What you'll see during the last six months, from the top left, is that global volumes were recovering nicely—up 18% half year on half year.

Simon Shaw: What you will see during the last six months from the top left is that global volumes were recovering nicely, up 18% half year on half year. If you look to the top right, you can see that the US market has driven that global growth. You will have also picked that up from the results of our peer group companies with large exposure to the US over the last couple of weeks. Bear in mind that the US capital market represented 60% of global volumes, and it grew by 24% half year on half year. Remember, we had next to no exposure to that market during H1 2026. Thankfully, we have got Eastdil in the house now. APAC and EMEA were markets that performed slightly differently, and they are markets where our traditional investment agency strength lies.

Speaker #2: And if you look to the top right, you can see that the US market has driven that global growth. You'll have also picked that up from the results of our peer group companies with large exposure to the US over the last couple of weeks or so.

Speaker #2: And bear in mind that the US capital market represented 60% of global volumes, and it grew by 24% half year on half year. And remember, we had next to no exposure to that market during the first half of '26.

Speaker #2: Thankfully, we've got Eastill in the hatch now. APAC and EMEA were markets that performed slightly differently, and they're markets where our traditional investment agency strength lies.

Speaker #2: So what you see from the bottom left is APAC coming back nicely, but from a low base. And critically, sentiment in EMEA really, for obvious reasons, was affected by its nature as the most hydrocarbon import-dependent market on the planet, for obvious reasons.

Simon Shaw: What you see from the bottom left is APAC coming back nicely, but from a low base. Critically, sentiment in EMEA, really for obvious reasons, was affected by its nature as the most hydrocarbon import dependent market on the planet. For obvious reasons, that has caused a lot of issues over the course of this period. The three conclusions to draw from this slide are that, number one, market share gains in our markets outside the US has enabled us to perform as well as we did during H1 in some difficult conditions. Number two, it is self-evident why we desired the quality exposure to the US that Eastdil Secured Savills provides us.

Speaker #2: That's caused a lot of issues over the course of this period. So, the three conclusions to draw from this slide are that, number one, market share gains in our markets outside the US have enabled us to perform as well as we did during the first half, in some difficult conditions.

Speaker #2: Number two, it's self-evident why we desire the quality exposure to the US that Eastdil Secured Savills provides us. And finally—this is an implication rather than overt on the slide—the resilience and profitable growth of our less transactional business has been, and will remain, hugely important to the performance of our organization overall, both in terms of our client service and our financial performance.

Simon Shaw: Finally, this is an implication rather than overt on the slide, the resilience and profitable growth of our less transactional business has been and will remain hugely important to the performance of our organization overall, both in terms of our client service and our financial performance. With that in mind, let us have a quick look at the revenue highlights. In these couple of slides, I am going to focus on revenue. Nick Sanderson will talk you through profitability, but you will see that every business line has improved during this period on the bottom line. Across the board in our transactional business, it is a story of gains in market share, enabling us to perform as we have and show the growth in revenues that we have. We start with the commercial transaction business.

Speaker #2: So, with that in mind, let's have a quick look at the revenue highlights. In these next couple of slides, I'm going to focus on revenue.

Speaker #2: Nick will talk you through profitability, but you'll see that every business line has improved during this period on the bottom line. Across the board, in our transactional business, it is a story of gains in market share enabling us to perform as we have and show the growth in revenues that we have.

Speaker #2: We start with the commercial transaction business. Revenue is up 19% overall, with capital transactions up 22%—well ahead of the market in what was described in Q2 as a delayed, not destroyed, continuation of recovery, in EMEA in particular.

Simon Shaw: Revenue is up 19% overall, with capital transactions up 22%, well ahead of market in what was described in Q2 as a delayed, not destroyed, continuation of recovery, in EMEA in particular. Of note was UK growth of 17% against a market where volumes actually declined by 12% H1 on H1. Very strong performance. In APAC, it was again a market share story with our business development activities of last year starting to come good in Australia during the ramp-up phase, and importantly, the market in Greater China beginning to turn more positive, again, off a low base. Finally, we saw different levels of market recovery across continental Europe with, broadly speaking, the further south you get, the better, the further north, the more compromised.

Speaker #2: Of note was UK growth of 17%, against a market where volumes actually declined by 12% half-year on half-year. Very strong performance. In APAC, it was again a market share story.

Speaker #2: With our business development activities of last year starting to come good in Australia during the ramp-up phase, and importantly, the market in Greater China beginning to turn more positive.

Speaker #2: Again, off a low base. Finally, we saw different levels of market recovery across continental Europe, with, broadly speaking, the further south you get, the better.

Speaker #2: The further north, the more compromised. But our occupier advisory business, particularly in the US, is very strong—23% growth in revenues year on year, which is really good to see.

Simon Shaw: Our occupier of the advisory business, particularly in the US, very strong, 23% growth in revenues year on year, which is really good to see. Nick will talk a bit more about the profitability improvement in a few quotes. Residential was more mixed, with revenues up 3% overall, and this is a very good performance in some tricky market conditions. Particularly, given the largest part of our residential business being the UK, was down 9%. Nick will talk about the impact of the Renters' Rights Act in a moment because that's the predominant reason for that decline. The brightest was our secondary sales or conventional estate agency, if you will, where we saw growth of 2%, again, driven against declines in market volumes, but increase in our market share of transactions above GBP 5 million. Finally, the Middle East was up 34% on a very strong first quarter.

Speaker #2: Nick will talk a bit more about the profitability improvement in two quarters. Residential was more mixed. We had revenues up 3% overall, and this is a very good performance in some tricky market conditions.

Speaker #2: Particularly given the strong — the largest part of our residential business being the UK, which was down 9%. And Nick will talk about the impact of the Renters' Rights Act.

Speaker #2: In a moment, because that's the predominant reason for that decline. The brighter spot was our secondary sales, or conventional estate agency if you will, where we saw growth of 2%.

Speaker #2: Again, driven against declines in market volumes, but an increase in our market share of transactions above £5 million. Finally, the Middle East was up 34% on a very strong first quarter.

Speaker #2: Before conflict escalation constrained new development sales from Q2, but one thing I will point out here is we've seen no evidence to date of expat repatriation from the region, which is important as we look forward.

Simon Shaw: The poor conflict escalation constrained new development sales from Q2. But one thing I will point out here is we've seen no evidence to date of expat repatriation from the region, which is important as we look forward. Let's turn to our less transactional lines. Here you'll see significant in due course profit growth from these businesses in a moment. But if we start with PM and FM, we saw revenue growth in line with our long-term expectations of mid to high single digits, and that is net of the impact of last year's restructuring in China, which reduced revenue. So you'll note it's about 170 basis points of reduction in revenue simply through that restructuring, but improved profits.

Speaker #2: So let's turn to our less transactional lines. Here you'll see significant, in due course, growth from these—profit growth from these businesses in a moment.

Speaker #2: But if we start with PM and FM, we saw revenue growth in line with our long-term expectations of mid to high single digits. And that is net of the impact of last year's restructuring in China, which reduced revenue.

Speaker #2: For your notes, it's about 170 basis points of reduction in revenue, simply through that restructuring, but improved profits. Elsewhere, we're winning new business across EMEA.

Simon Shaw: Elsewhere, we're winning new business across EMEA and in Asia Pacific and broadening the client offering in Singapore, where we're pushing into government-mandated integrated facilities management contracts, much aided by the acquisition of Alpina in that market last year. MEIT Consultants is a small business, but I put it there and reference it because it brings critical M&E and environmental engineering capability into the data center sector for us in EMEA. Moving on to our consulting business. It grew revenue by 2%, with strong valuations and building consultancy contributing in EMEA and the successful integration of our move and change management business, Hoffman, in the US. These were offset at the revenue line by a significant reduction in project management pass-through costs in India.

Speaker #2: And in Asia Pacific, we're broadening the client offering in Singapore, where we're pushing into government-mandated integrated facilities management contracts, much aided by the acquisition of Alpina in that market last year.

Speaker #2: MEIT Consultants is a small business, but I put it there for reference. It brings critical M&E and environmental engineering capability into the data center sector for us in EMEA.

Speaker #2: Moving on to our consulting business—it grew revenue by 2%, with strong valuations and building consultancy contributing in EMEA, and the successful integration of our move and change management business, Hoffman, in the US.

Speaker #2: These were offset at the revenue line by a significant reduction in project management pass-through costs in India. So, zero profit impact—but again, another reduction in revenue.

Simon Shaw: Zero profit impact, but again, another reduction in revenue and the impact of last year's restructuring in China as well, which had a small impact on the revenue line here. Again, positive impact on profits. I should note that in many of these consultancy lines, we are beginning to benefit significantly from investment in data curation and digitization. Finally, Savills Investment Management grew revenues by 8%, despite a still very challenging capital raising market across EMEA. It was higher transaction fees and asset management fees that drove that growth. We have also made some management changes in there in both Europe and Asia, and now working on the next five-year plan for that business. All in all, our less transactional businesses performed well and really anchored the performance of the group overall.

Speaker #2: And the impact of last year's restructuring in China as well—a small impact on the revenue line here. Again, a positive impact on profits. I should note that in many of these consultancy lines, we are beginning to benefit significantly from investment in data curation and digitization.

Speaker #2: Finally, Savills Investment Management grew revenues by 8%, despite a still very challenging capital-raising market across EMEA. It was higher transaction fees and asset management fees that drove that growth.

Speaker #2: We've also made some management changes there, in both Europe and Asia, and are now working on the next five-year plan for that business. All in all, our less transactional businesses performed well and really anchored the performance of the group overall.

Speaker #2: So I'll now turn to our newest family member. He's still secured, which obviously didn't affect our performance during these first six months, other than that we had to recognize some of the costs of acquisition.

Simon Shaw: I will now turn to our newest family member, Eastdil Secured, which obviously did not affect our performance during this first six months, other than that we had to recognize some of the costs of acquisition before the period end. Their H1 momentum, both in revenue and in pipeline, evidence why we are so excited about this combination. The mix of revenue was well-balanced, roughly 60% equity-related, 40% debt-related. I would draw your attention to the fact that actually that debt advisory business is the Eastdil Secured Savills equivalent of the recurring revenue line, which is important to us as we go forward.

Speaker #2: Before the period end. So their first-half momentum, both in revenue and in pipeline, evidences why we are so excited about this combination. The mix of revenue was well balanced, roughly 60% equity-related and 40% debt-related.

Speaker #2: And I would draw your attention to the fact that actually the debt advisory business is the Savills equivalent of the recurring revenue line, which is important to us as we go forward.

Speaker #2: And also, draw your attention to the fact that, as you can see from the chart below, East still secured that Savills was number one in the US public M&A market advisory league table during this period.

Simon Shaw: I would also draw your attention to the fact, as you see from the chart below, that Eastdil Secured Savills was number one in the US public M&A market advisory league table during this period, which was an exceptional performance in both senses of that word, exceptional. Do not expect that necessarily to continue through the H2, but it is great to see it. It definitely helped drive their revenue growth in the US up 33%, versus the European revenue growth up a healthy 23% during the period. Obviously, H1 was pre-acquisition and therefore it does not directly benefit Savills shareholders during the period. What I do think it does do, though, is it underpins the rationale, structure, and ultimately the board decision to go ahead with that transaction when we did.

Speaker #2: That was an exceptional performance, in both senses of the word "exceptional." So don't necessarily expect that to continue through the second half, but it's great to see it.

Speaker #2: And it definitely helped drive their revenue growth in the US up 33%, versus the European revenue growth, which was up a healthy 23% during the period.

Speaker #2: Obviously, H1 was pre-acquisition and therefore doesn't directly benefit Savills shareholders during the period. What I do think it does do, though, is it underpins the rationale, structure, and ultimately the board's decision to go ahead with that transaction when we did.

Speaker #2: So if you hold that thought, I'll hand over to Nick to take you through the detail of our finances.

Simon Shaw: If you hold that thought, I will hand over to Nick to take you through the detail of our finances.

Speaker #1: Thank you, Simon. Morning, everyone. As you referenced, Simon, it’s a hot summer’s day. Very impressed to see a few ties in the room. Thankfully, no shorts from Clyde.

Nick Sanderson: Thank you, Simon. Morning, everyone. As you reckon, Simon, hot summer's day. Very impressed to see a few ties in the room. Thankfully, no shorts from Clyde. Let's turn to the headline results, where the group has delivered strong earnings growth driven by an increase in revenue along with positive margin progression. Revenue of more than GBP 1.2 billion is up 8.7%, predominantly organically generated, with underlying EBITDA up 32% to almost GBP 74 million. Underlying PBT at GBP 34.3 million is up 47%, or almost 49% on a constant currency basis, delivering underlying EPS of 17.9p. This strong EPS growth means the interim dividend has again been increased at a rate well ahead of inflation, with a 5.4% uplift delivering a payout of 7.8p per share.

Speaker #1: So let's turn to the headline results, where the group has delivered strong earnings growth, driven by an increase in revenue along with positive margin progression.

Speaker #1: Revenue of more than £1.2 billion is up 8.7%, predominantly organically generated, with underlying EBITDA up 32% to almost £74 million. Underlying PBT at £34.3 million is up 47%, or almost 49% on a constant currency basis.

Speaker #1: Delivering underlying EPS of 17.9 pence. This strong EPS growth means the interim dividend has again been increased at a rate well ahead of inflation, with the 5.4% uplift delivering a payout of 7.8 pence per share.

Speaker #1: And as you can see, we ended the period with net debt of less than £50 million, although we moved back to a net cash position at the end of July, ahead of completion of the Eastdil acquisition.

Nick Sanderson: As you can see, we ended the period with net debt of less than GBP 50 million, although we moved back to a net cash position at the end of July ahead of completion of the Eastdil acquisition. As you heard from Simon, revenue growth was delivered across all Savills' main business areas, including transactional revenues up 14% overall, driven by a strong commercial performance, particularly in North America, offsetting some of the headwinds in EMEA residential. Less transactional revenues again rose, up 6%. Overall, less transactional revenues of GBP 776 million represented 63% of group total revenues, a critical component of Savills' diversified and well-balanced business model. As you can see bottom right, the consistent revenue growth delivered by the group over the last four years is up by more than 20%.

Speaker #1: As you heard from Simon, revenue growth was delivered across all Savills' main business areas, including transactional revenues, which were up 14% overall. This was driven by strong commercial performance, particularly in North America, offsetting some of the headwinds in EMEA residential.

Speaker #1: Less transactional revenues again rose, up 6%. Overall, less transactional revenues of £776 million represented 63% of group total revenues, a critical component of Savills' diversified and well-balanced business model.

Speaker #1: And as you can see in the bottom right, the consistent revenue growth delivered by the group over the last four years is up by more than 20%.

Speaker #1: This strong performance delivered not only revenue growth, but also a significant increase in underlying profit before tax too, which was up 47%. There was a significant reduction in first-half losses on the commercial transactional side, driven by improved performances, notably in the US, Hong Kong, Germany, Italy, and the UK.

Nick Sanderson: This strong performance delivered not only revenue growth, but also a significant increase in underlying profit before tax too, which was up 47%. There was a significant reduction in H1 losses on the commercial transactional side, driven by improved performances, notably in the US, Hong Kong, Germany, Italy, and the UK. The group also benefited from the inherent operational leverage within the business. Residential advisory activities delivered a profit of GBP 2.1 million. Although this was down from last year, principally due to the one-time negative income recognition effects of the imposition of the Renters' Rights Act in the UK. H1 profits on the less transactional side were up 28% to GBP 42.2 million, with a particularly strong uplift of 74% on the consultancy side, largely resulting from the restructuring activities last year in China and strong progress year to date in North America.

Speaker #1: The group also benefited from the inherent operational leverage within the business. Residential advisory activities delivered a profit of £2.1 million, although this was down from last year, principally due to the one-time negative income recognition effects of the imposition of the Renters' Rights Act in the UK.

Speaker #1: First-half profits on the less transactional side were up 28%, to £42.2 million, with a particularly strong uplift of 74% on the consultancy side, largely resulting from the restructuring activities last year in China, and strong progress year to date in North America.

Speaker #1: The property and facilities management business delivered another resilient performance, and the Group continues to focus on lifting the investment management margin. So, with first half underlying profits of £34.3 million, you can see in the bar chart that margin growth momentum continues to build across the business, which is one of the Group's key strategic priorities.

Nick Sanderson: The property and facilities management business delivers another resilient performance, and the group continues to focus on lifting the investment management margin. With H1 underlying profits of GBP 34.3 million, you can see in the bar chart that margin growth momentum continues to build across the business, one of the group's key strategic priorities. Equally, this improved level of profit came through across all of the group's regions, with the smallest uplift but highest profits coming from EMEA, where an improved performance on the continent was largely offset by lower UK residential profits. APAC performed strongly, delivering a 75% increase in profit, driven by a strong capital markets performance and cost-saving measures in China. Following our targeted investments in the region, particularly in Australia and Japan, there should be more profit in coming periods.

Speaker #1: Equally, this improved level of profit came through across all of the group's regions, with the smallest uplift but highest profits coming from EMEA, where an improved performance on the continent was largely offset by lower UK residential profits.

Speaker #1: APAC performed strongly, delivering a 75% increase in profit, driven by a strong capital markets performance and cost-saving measures in China. Following our targeted investments in the region, particularly in Australia and Japan, there should be more profit in coming periods.

Speaker #1: And North America generated a profit of £2.6 million, a positive £9 million swing year-on-year, driven by both our transactional and consultancy activities delivering positive margins.

Nick Sanderson: North America generated a profit of GBP 2.6 million, a +GBP 9 million swing year-on-year, driven by both our transactional and consultancy activities delivering positive margins. On the occupier leasing side, there was an increase in larger office deals and overall pipelines for the H2 were strong across both office and industrial. Pulling this all together with the group's customary reconciliation of underlying profit to IFRS-reported profits, there are two key points to highlight alongside the more detailed reconciliation included in the appendices. Firstly, the GBP 7.2 million of restructuring costs includes the previously guided GBP 3 million overhang from last year's restructuring activities, with the balance linked to the further right-sizing of certain service lines, predominantly in APAC and on the continent.

Speaker #1: On the occupier leasing side, there was an increase in larger office deals, and overall pipelines for the second half were strong across both office and industrial.

Speaker #1: So, pulling this all together—with the group's customary reconciliation of underlying profit to IFRS reported profits—there are two key points to highlight, alongside the more detailed reconciliation included in the appendices.

Speaker #1: Firstly, the £7.2 million of restructuring costs include the previously guided £3 million overhang from last year's restructuring activities, with the balance linked to the further right-sizing of certain service lines, predominantly in APAC and on the Continent.

Speaker #1: And for the second half, a similar quantum is expected, as the group completes its strategic restructuring activities, including some Eastdil-related integration costs, which, as you would expect, are predominantly in Europe.

Nick Sanderson: For the H2, a similar quantum is expected as the group completes its strategic restructuring activities, including some Eastdil-related integration costs, which, as you would expect, are predominantly in Europe. In total, the full year's restructuring and integration costs are likely to be around half of last year's GBP 30 million charge and are expected to benefit the group's profits and margin in future years. Secondly, the GBP 13.5 million in transaction costs includes professional advisor fees related to the Eastdil purchase. Following successful closing of the deal, the balance of the advisory costs and fees associated with the acquisition mean group transaction costs are expected to be higher in the H2 than the H1. Whilst the group's profits are consistently H2-weighted, this has been a strong H1 for the Savills team, with underlying EPS up 53%.

Speaker #1: In total, the four years' restructuring and integration costs are likely to be around half of last year's £30 million charge, and are expected to benefit the group's profits and margin in future years.

Speaker #1: Secondly, the £13.5 million of transaction costs includes professional advisor fees related to the Eastdil purchase. Following the successful closing of the deal, the balance of the advisory costs and fees associated with the acquisition mean group transaction costs are expected to be higher in the second half than the first.

Speaker #1: So, whilst the group's profits are consistently second-half weighted, this has been a strong first half for the Savills team, with underlying EPS up 53%.

Speaker #1: And we are pleased to report the same for our new colleagues at Eastdil Secured Savills too, who had a particularly strong first half.

Nick Sanderson: We are pleased to report the same for our new colleagues at Eastdil Secured Savills too, who had a particularly strong H1. You can see in the second column, Eastdil's H1 revenues were GBP 225 million, the $302 million in US dollars Simon referred to earlier. This delivered an underlying EBITDA of GBP 38.4 million for the six months, presented on the same US GAAP basis as Eastdil's GBP 84 million EBITDA for the full year 2025 that we disclosed back in March. Further down the page, you can see that this EBITDA of GBP 38.4 million would translate into an illustrative estimated underlying PBT of GBP 37.8 million, or margin of 17%, post conversion to IFRS and adjusting for depreciation and other items.

Speaker #1: You can see in the second column, East still's H1 revenues were £225 million, the $302 million Simon referred to earlier.

Speaker #1: This delivered an underlying EBITDA of £38.4 million for the six months, presented on the same US GAAP basis as Eaststill's £84 million EBITDA for the full year 2025 that we disclosed back in March.

Speaker #1: Further down the page, you can see that this EBITDA of £38.4 million would translate into an illustrative estimated underlying PBT of £37.8 million, or a margin of 17%, post-conversion to IFRS and adjusting for depreciation and other items.

Speaker #1: This underlying profit is presented on a consistent basis, with the Savills standalone underlying PBT, including adjustments for the amortization expense relating to the historic one-time Eastdil SIP put in place in 2025.

Nick Sanderson: This underlying profit is presented on a consistent basis with the Savills standalone underlying PBT, including adjustments for the amortization expense relating to the historic one-time Eastdil SIPP put in place in 2025. As disclosed on purchase, the five-year SIPP results in a non-cash annual charge of around GBP 30 million, or GBP 15 million each six months, which will continue to be reflected in reported profits until maturity in 2030. To give you a sense of the pro forma group profitability pre synergies, we have combined the standalone Eastdil and Savills H1 performances, along with the expected initial interest expense associated with the $800 million of acquisition financing, which should, of course, fall over time as the debt is paid down from free cash flow.

Speaker #1: As disclosed on purchase, the five-year SIP results in a non-cash annual charge of around £30 million, or £15 million for each six months, which will continue to be reflected in reported profits until maturity in 2030.

Speaker #1: To give you a sense of the pro forma group profitability pre-synergies, we've combined the standalone Eastdil and Savills H1 performances, along with the expected initial interest expense associated with the $800 million of acquisition financing, which should, of course, fall over time as the debt is paid down from free cash flow.

Speaker #1: So, taken together, on a proforma illustrative basis, the combination would have increased the H1 group UPBT by £21 million to £55 million, an uplift of 60%.

Nick Sanderson: Taken together on a pro forma illustrative basis, the combination would have increased the H1 group UPBT by GBP 21 million to GBP 55 million, an uplift of 60%. This reaffirms the board's view that the combination should not only deliver better client outcomes, but also meaningful earnings accretion and strong returns for shareholders, too. Looking ahead to the full year 2026 numbers for the enlarged group, which will include Eastdil's contribution from August through to December. With Eastdil historically having a much less skewed profit weighting to the second half than Savills standalone, current expectations are for a five-month profit contribution to the group, broadly similar to the Eastdil profit performance in the first half. We will, of course, be able to provide actual rather than illustrative financials at year-end, and we will give you clear line of sight of Eastdil's performance, as well as updating our segmental reporting.

Speaker #1: This reaffirms the board's view that the combination should not only deliver better client outcomes but also meaningful earnings accretion and strong returns for shareholders.

Speaker #1: So looking ahead to the full year 2026 numbers for the enlarged group, which will include East still's contribution from August through to December. With East still historically having a much less skewed profit weighting to the second half than Savills standalone, current expectations are for a five month profit contribution to the group, broadly similar to the East still profit performance in the first half.

Speaker #1: We will, of course, be able to provide actual rather than illustrative financials at year-end, and we'll give you clear line of sight on East Still's performance, as well as updating our segmental reporting.

Speaker #1: Finally, from me, the group remains committed to maintaining a strong balance sheet, with the cash flow generation of the group, including the underpin from Savills' resilient, less transactional earnings, supporting a capital allocation policy of running with some low financial leverage.

Nick Sanderson: Finally from me, the group remains committed to maintaining a strong balance sheet with the cash flow generation of the group, including the underpin from Savills resilient less transactional earnings, supporting a capital allocation policy of running with some low financial leverage. To facilitate the combination with Eastdil, the team successfully arranged an attractive $800 million bridge facility from existing group lenders. $450 million of this has already been refinanced with a three plus one plus one-year term bank loan, which has pricing and covenants in line with the group's existing main revolving credit facility, which matures in 2030. The remaining $350 million is expected to be refinanced within the next 12 months through the issuance of new fixed coupon, medium-term, US private placement notes in a market well known to Savills. These combined US dollar facilities are expected to have an all-in cost between 5.5% and 6%.

Speaker #1: To facilitate the combination with East still, the team successfully arranged an attractive 800 million dollar bridge facility from existing group lenders. 450 million of this has already been refinanced, with a three plus one plus one year term bank loan, which has pricing and covenants in line with the group's existing main revolving credit facility, which matures in 2030.

Speaker #1: The remaining $350 million is expected to be refinanced within the next 12 months through the issuance of new fixed coupon medium-term US private placement notes, in a market well known to Savills.

Speaker #1: These combined US dollar facilities are expected to have an all in cost between five and a half and six percent. Looking ahead, the expected strong cash generation of the enlarged group is set to deliver a net debt to EBITDA of 1.5 times or less by year end 26, and around a one times at the end of 2027, or else equal.

Nick Sanderson: Looking ahead, the expected strong cash generation of the enlarged group is set to deliver a net debt to EBITDA of 1.5x or less by year-end 2026, and around a 1x at the end of 2027, all else equal. The enlarged group's through the year cash flow profile will be similar to Savills' historic profile, so you should continue to see a higher leverage ratio at half year than full year. Taken together, the board remains committed to maintaining the group's strong balance sheet and attractive shareholder distribution policy, while still having some scope to pursue further growth opportunities, always taking a disciplined approach. With these positive financial results, along with the technical guidance slide included in the appendix, you should hopefully have all the key data points to update your models. Now back to Simon to talk about strategy.

Speaker #1: And the enlarged group’s through-the-year cash flow profile will be similar to Savills’ historic profile, so you should continue to see a higher leverage ratio at half year than at full year.

Speaker #1: Taken together, the Board remains committed to maintaining the Group's strong balance sheet and attractive shareholder distribution policy, while still having some scope to pursue further growth opportunities, always taking a disciplined approach.

Speaker #1: So, with these positive financial results, along with the technical guidance slide included in the appendix, you should hopefully have all the key data points to update your models.

Speaker #1: Now, back to Simon to talk about strategy.

Speaker #2: Thank you, Nick. I won't take too long now. Before I get into that, I'd just like to re-emphasize the East's still secure transaction.

Simon Shaw: Thanks, Jimmy. I will not take too long now. Before I get into that, I would just like to reemphasize around the Eastdil Secured transaction and articulate so clearly and directly how I believe it benefits all the stakeholders of Savills, because I am genuinely confident on all three counts I am about to give you. First of all, and most importantly, the clients. Clients gain a partner who can help them from the very largest, most complex of transaction, down through leasing and other services that we provide, to the day-to-day management of their assets and portfolios. Our people benefit from a larger playing field, broader and deeper client relationships, and more opportunity in a genuinely global franchise. Finally, our shareholders gain, as you have heard, an earnings enhancing transaction that lifts our margin trajectory, provides attractive returns, and strengthens the global position of this group.

Speaker #2: And articulate so clearly and directly how I believe it benefits all the stakeholders of Savills, because I'm genuinely confident on all three counts I'm about to give you.

Speaker #2: So, first of all, and most importantly for clients, clients gain a partner who can help them from the very largest, most complex of transactions, down through leasing and other services that we provide, to the day-to-day management of their portfolios.

Speaker #2: Our people benefit from a larger playing field, broader and deeper client relationships, and more opportunity in a genuinely global franchise. And finally, our shareholders gain, as you've heard, an earnings-enhancing transaction that lifts our margin trajectory, provides attractive returns, and strengthens the global position of this group.

Speaker #2: So let's look at that in the context of what has become affectionately known as the Pyramid of Promise, which is our strategic slide. Because that really is the heart of the story.

Simon Shaw: Let's look at that in the context of what has become affectionately known as the pyramid of promise, which is our strategic slide. That really is the heart of the story, and you will have seen this in March when I put it up for the first time for you. If we start at the base of that pyramid, we have always had a focus on building our less transactional business lines around the world, that is property management, facilities management. They represent our constant practical touch point with our clients, and corporately, they act as the keel on the ship in all weathers. We then move up through the pyramid, through investment management, and into the transactional element of our business, via consultancy as well. The transactional business element has its own hierarchy of volatility and profitability.

Speaker #2: And you will have seen this in March, when I put it up for the first time for you. But if we start at the base of that pyramid, we have always had a focus on building our less transactional business lines around the world.

Speaker #2: That's property management, facilities management. They represent our constant, practical touchpoint with our clients, and corporately, they act as the keel on the ship in all weathers.

Speaker #2: We then move up through the pyramid, through investment management, and into the transactional element of our business—via consultancy as well. The transactional business element has its own hierarchy of volatility and profitability.

Speaker #2: So, if you look at the debt element, as I mentioned earlier, that's much more of a recurring business line, despite it being transactional. And at the apex, M&A and strategic advice is perhaps the most profitable, but also inherently variable.

Simon Shaw: If you look at the debt element, as I mentioned earlier, that is much more of a recurring business line, despite it being transactional. At the apex, M&A and strategic advice is perhaps the most profitable, but also inherently variable. Building on our historic strength in capital transactions, Eastdil Secured Savills builds out that part of the portfolio of services by enhancing that strategic M&A, advisory, portfolio recap, debt and equity capability, and most importantly, at scale, both in EMEA and in North America. If you recall my slide right at the beginning, that is really important to us. Overall, as I have just said, the combination dramatically increases our ability to serve our clients, from the discrete conversation in the boardroom, down through the execution of real estate transactions, into the day-to-day management of underlying real estate portfolios and assets.

Speaker #2: So, building on our historic strengths in capital transactions, Eastdil Secured Savills fills out that part of the portfolio of services by enhancing that strategic M&A, advisory, portfolio recap, debt and equity capability, and most importantly, at scale, both in EMEA and in North America.

Speaker #2: And if you recall my slide right at the beginning, that is really important to us. Overall, as I've just said, the combination dramatically increases our ability to serve our clients—from the discrete conversation in the boardroom, down through the execution of real estate transactions, into the day-to-day management of underlying real estate and portfolios and assets.

Speaker #2: So I'm just going to turn now to another slide I put up in March. I'm not going to go through the whole lot. You've seen most of this before.

Simon Shaw: I am just going to turn now to another slide I put up in March. I am not going to go through the whole lot. You have seen most of this before. On the left-hand side are the many reasons why this investment banking business of Eastdil is attractive to us. I want to just underline two further points. First of all, it enables us to access and partner with top global investors in real estate at the very highest level, before there is a transaction or an asset management strategy in mind, and that is critical. Secondly, debt advisory at scale enables us to serve every element of the cap table of the world's real estate investors. Those are the two, at heart, important things about this deal. Finally, I do believe that there is a genuinely symbiotic relationship between the two sides of our business.

Speaker #2: But on the left-hand side are the many reasons why this investment banking business of East still is attractive to us. But I want to just underline two further points.

Speaker #2: First of all, it enables us to access and partner with the top global investors in real estate at the very highest level, before there is a transaction or an asset management strategy in mind.

Speaker #2: And that is critical. Secondly, debt advisory at scale enables us to serve every element of the cap table of the world's real estate investors.

Speaker #2: Those are the two, at heart, most important things about this deal. Finally, I do believe that this is a genuinely symbiotic relationship between the two sides of our business.

Speaker #2: Our respective service lines are compatible and complementary, and there is opportunity going both ways, as this slide tries to show. It will also catalyze our ability to develop the global portfolio of our traditional service lines over the coming years as well.

Simon Shaw: Our respective service lines are compatible and complementary, and there is opportunity going both ways, as this slide tries to show. It will catalyze our ability to develop the global portfolio of our traditional service lines over the coming years as well. It is important in many different ways. If we turn to the business itself, some practical elements around our modus operandi. There is nothing particularly new here, in that we referenced that this is going to be our strategy back in March. You will recall that this is a combination which unusually for a sizable deal in our sector, carries very little overlap between the two businesses. This is important as it should help to mitigate revenue attrition, which inevitably occurs in mergers of this type. Critically too, our respective cultures are very similar.

Speaker #2: So, it's important in many different ways. If we turn to the business itself, some practical elements around our modus operandi—there's nothing particularly new here.

Speaker #2: In that, we referenced that this is going to be our strategy back in March. But you'll recall that this is a combination which, unusually for a sizable deal in our sector, carries very little overlap between the two businesses.

Speaker #2: This is important, as it should help to mitigate revenue attrition, which inevitably occurs in major mergers at this time. Critically, too, our respective cultures are very, very similar.

Speaker #2: And the one thing I would say is that with the broader and deeper interactions we've had between the businesses, between our people since March, that factor has just become ever more clear and more obvious to both of us, which is great.

Simon Shaw: The one thing I would say is that with the broader and deeper interactions we have had between the businesses, between our people since March, that factor has just become ever more clear and ever more obvious to both of us, which is great. What we have done from an operating perspective is to ensure that Eastdil Secured Savills retains its existing modus operandi, its existing operating model. A single global P&L, a single global bonus pool, with the frontline connectivity between us managed via something called the buddy system, which is an awful phrase, but we remember it because it is awful. Under which Savills individuals and their respective counterparts at Eastdil develop assisted relationships across service lines and sectors to know how to work together to go with joint offerings for the client or as a conduit for referrals.

Speaker #2: So what we've done from an operating perspective is to ensure that East still secures Savills retains its existing modus operandi, its existing operating model—a single global P&L, a single global bonus pool, with the frontline connectivity between us managed via something called the buddy system, which is an awful phrase, but you remember it because it's awful.

Speaker #2: Under which Savills individuals and their respective counterparts at East still develop assisted relationships across service lines and sectors, to know how to work together to go with joint offerings to the client, or as a conduit for referrals.

Speaker #2: From a governance perspective, East, Still, Secured CEO and President have both joined the group executive board, which is chaired by me, and it is the primary committee responsible for running this business overall, around the globe.

Simon Shaw: From a governance perspective, Eastdil Secured's CEO and president have both joined the group executive board, which is chaired by me, and it is the primary committee responsible for running this business overall around the globe. Finally, I am particularly pleased that even in the 2 weeks since we have actually consummated the transaction, we are already starting to see potential opportunities across referrals, but also joint approaches to market and indeed, joint appointments with clients. That is great news. Our results today, turning to other strategic priorities apart from the Eastdil position, are important because they reflect the standalone strategic and tactical initiatives we have taken over previous periods.

Speaker #2: And finally, I'm particularly pleased that even in the two weeks since we've actually completed the transaction, we're already starting to see potential opportunities across referrals, but also joint approaches to market, and indeed, joint appointments.

Speaker #2: So that's great news. Our results today, turning to other strategic priorities apart from the East Still position, are important because they reflect the standalone strategic and tactical initiatives we've taken over previous periods.

Speaker #2: I set out all these other strategic priorities in March, so I'm not going to go through them all in detail. But I would categorize them as classic growth and infill strategies, as we seek to bring the appropriate segments of that pyramid of promise to our clients and markets around the world over time.

Simon Shaw: I set out all these other strategic priorities in March, so I am not going to go through them all in detail, but I would categorize them as classic growth and infill strategies as we seek to bring the appropriate segments of that pyramid of promise to our clients and markets around the world over time. You will see we have done quite a lot over the last few months from the bottom of this slide. Much of it, from China to the Private Office to Savills Investment Management, has been about enhancing our roster of leaders and senior team members.

Speaker #2: You'll see we've done quite a lot over the last few months from the bottom of this slide. Much of it, from China to the private office to Savills Investment Management, has been about enhancing our roster of leaders and senior team members.

Speaker #2: But we're still keeping a very close eye on cost and on both individual and team performance across the business. Alongside some focused growth initiatives—which you will have heard about from the crew team, as the leading data center team in Japan—and the related investment management leader there as well.

Simon Shaw: We are still keeping a very close eye on cost and on both individual and team performance across the business, alongside some focused growth initiatives, which you will have heard about, from the recruiting of the leading data center team in Japan and an updated investment management leader there as well, through to investing into our proprietary CRM systems in global residential, broader initiatives in data curation, and dare I use the acronym, AI as well, where we have got a lot going on at the moment. We are also at the planning stage, I should say, for the launch of future service line enhancements in North America over the coming periods. There will be more about that over the next few years. There is a lot going on, but with some very clear strategic filters in place to ensure that we make the best use of both our human and capital resources.

Speaker #2: Through to investing in our proprietary CRM systems in global residential, and broader initiatives in data curation—and, dare I use the acronym, AI, as well—where we've got a lot going on.

Speaker #2: We're also at the planning stage, I should say, for the launch of future service line enhancements in North America over the coming periods.

Speaker #2: There'll be more about that over the next few years. So, there's a lot going on, but with some very clear strategic filters in place to ensure that we make the best use of both our human and capital resources.

Simon Shaw: There is a lot going on, but with some very clear strategic filters in place to ensure that we make the best use of both our human and capital resources. I look forward to updating you more fully in future periods along these lines. We finish by looking into that crystal ball, and after a strong H1, we are in a good place with significant pipelines. But I am constantly reminded of my new colleague, Mike van Kuijningen, CEO of Eastdil, and his great line, which resonates, "Pipeline's great, but you can't eat it." It obviously has to convert into closed transactions and revenue over the course of this period. To be frank, that execution timing is the hardest thing to predict in current market conditions in many, many markets in which we operate.

Speaker #2: So I look forward to updating you more fully in future periods along these lines. To finish by looking into that crystal ball, and after a strong H1, we're in a good place with significant pipelines.

Simon Shaw: I look forward to updating you more fully in future periods along these lines. We finish by looking into that crystal ball, and after a strong H1, we are in a good place with significant pipelines. But I am constantly reminded of my new colleague, Mike van Kuijningen, CEO of Eastdil, and his great line, which resonates, "Pipeline's great, but you can't eat it." It obviously has to convert into closed transactions and revenue over the course of this period. To be frank, that execution timing is the hardest thing to predict in current market conditions in many, many markets in which we operate. Which also include, I should say, the new political landscape in the UK, too, in advance of the budget in October.

Speaker #2: But I am constantly reminded of my new colleague, Mike Van Kenanigan, CEO of Eaststill, and his great line, which resonates: "Pipeline's great, but you can't eat it."

Speaker #2: It obviously has to convert into closed transactions and revenue over the course of this period. And, to be frank, that execution timing is the hardest thing to predict in current market conditions, in many, many markets in which we operate.

Speaker #2: Which also includes, I should say, the new political landscape in the UK too, in advance of the budget in October. That said, our less transactional businesses are giving us both the resilience and the growth we expect, which, together with those pipelines, means that our expectations for the full year remain unchanged.

Simon Shaw: Which also include, I should say, the new political landscape in the UK, too, in advance of the budget in October. That said, our less transactional businesses are giving us both the resilience and the growth we expect, which together with those pipelines, means that our expectations for the full year remain unchanged. I want to finish by thanking all our colleagues around the world for their hard work, resilience in some tricky market conditions, and their relentless focus on client service and rigorous execution, without which none of this would be possible. As we go into questions, I will leave a concluding slide up for you, which I think just sets out how we as management feel about Savills at the moment. This slide speaks to the breadth of our business, both by geography and by service lines, which provides overall diversification, but also critically, good growth potential.

Simon Shaw: That said, our less transactional businesses are giving us both the resilience and the growth we expect, which together with those pipelines, means that our expectations for the full year remain unchanged. I want to finish by thanking all our colleagues around the world for their hard work, resilience in some tricky market conditions, and their relentless focus on client service and rigorous execution, without which none of this would be possible. As we go into questions, I will leave a concluding slide up for you, which I think just sets out how we as management feel about Savills at the moment. This slide speaks to the breadth of our business, both by geography and by service lines, which provides overall diversification, but also critically, good growth potential.

Speaker #2: I want to finish by thanking all our colleagues around the world for their hard work, resilience in some tricky market conditions, and their relentless focus on client service and rigorous execution, without which none of this would be possible.

Speaker #2: So as we go into questions, I'll leave a concluding slide up for you, which I think just sets out how we as management feel about Savills at the moment.

Speaker #2: And this slide speaks to the breadth of our business, both by geography and by service lines, which provides overall diversification, but also, critically, good growth potential.

Speaker #2: It speaks, too, to our financial strength and the discipline with which we use it, and to our focus on margin improvement. I do believe that this set of characteristics supports the enlarged Savills strategy which, pursued with conviction and a relentless focus on client needs, will enable us to deliver very attractive shareholder returns over coming periods.

Simon Shaw: It speaks, too, to our financial strength and the discipline with which we use it, and to our focus on margin improvement. I do believe that this set of characteristics supports the enlarged Savills strategy, which pursued with conviction and a relentless focus on client needs, will enable us to deliver very attractive shareholder returns over coming periods. Thank you. That concludes the formal part this morning. We will now take some questions. If you have any, please do state your name and your institution for the record. I think Susie is going to govern any questions that come in online as well. There is even a microphone for Clyde, although you probably don't need it, to be fair.

Speaker #2: So, thank you. That concludes the formal part this morning. We'll now take some questions. If you have any, please do state your name and your institution for the record.

Speaker #2: And I think Susie's going to govern any questions that come in online as well. There was even a microphone for Clyde, although you probably don't need it, to be fair.

[Analyst]: I probably don't. Thank you. Good morning. First question was on market share.

Clyde Lewis: I probably don't. Thank you. Good morning. First question was on market share.

Speaker #3: Probably don't.

Speaker #1: Thank you.

Speaker #2: Thank you. First question was on market share. Sounds like a cracking job in the UK in particular. Fascinating to know a little bit more about how you've been so successful there.

Simon Shaw: Yeah.

[Analyst]: Sounds like you are doing a cracking job in UK in particular, but it would be fascinating to know a little bit more about how you have been so successful there, and also what sort of response have you seen from the competitors, I suppose?

Clyde Lewis: Sounds like you are doing a cracking job in UK in particular, but it would be fascinating to know a little bit more about how you have been so successful there, and also what sort of response have you seen from the competitors, I suppose?

Speaker #2: And I'm also wondering what sort of responses we've seen from the competitors. I suppose it differs across the various service lines, but if you take one of the most acute pieces of evidence around that, it would be in the residential market, which you know only too well.

Simon Shaw: Yeah. I suppose it differs across the different service lines. But if you take one of the most acute pieces of evidence around that would be in the residential market, which you know only too well. Clearly, it has not been a great overall market for UK residential for all sorts of well-rehearsed reasons we do not need to go into. I think the laser-eyed focus of our teams on proper advice to clients, in an environment where one can end up with agents bidding for the business with overvaluation, et cetera, has made a significant difference to us. I think also, if you have followed us for many years, as you know, in difficult market conditions, there is a tendency for a flight to quality and a flight to a degree of certainty of execution when it is necessary. I think we always benefit from that.

Speaker #2: And clearly, it hasn't been a great overall market for UK residential, for all sorts of well-rehearsed reasons we don't need to go into. I think that laser-eyed focus of our teams on proper advice to clients, in an environment where one can end up with agents bidding for the business with overvaluation, etc.

Speaker #2: It has made a significant difference to us. I think also, if you've followed us for many years, as you know, in difficult market conditions there is a tendency for a flight to quality.

Speaker #2: And a flight to a degree of certainty of execution when it's necessary. And I think we always benefit from that. Certainly, in my nearly 18 years, we've always benefited in more difficult market conditions.

Simon Shaw: Certainly, in my nearly 18 years, we have always benefited in more difficult market conditions. So I think there are two quite important factors there. I think in the commercial side of our business, we have just really stuck at it through thick and thin. I think about, for instance, the retail market over previous years, and we start to benefit from the business that is there. I would also say that there is an element, also, the halo effect of the Eastdil Secured transaction in many markets, particularly the case in the US, I would suggest. Even though what we do in the US today is leasing, there is a halo effect benefit to our organization from being aligned to Eastdil Secured Savills, which obviously is much better known in the US than it is necessarily over here. So those are a couple of factors.

Speaker #2: So I think there are two quite important factors there. I think in the commercial side of our business, we've just really stuck at it through thick and thin when I think about, for instance, the retail market over previous years.

Speaker #2: And we start to benefit from the business that is there. I would also say that there is an element, also, of the halo effect of the still-secure transaction.

Speaker #2: In many markets, particularly the case in the US, I would suggest, even though what we do in the US today is leasing, there is a halo effect benefit to our organisation from being aligned to the still secure saddles, which is obviously much better known in the US than it is necessarily over here.

Speaker #2: So, those are a couple of factors.

Speaker #3: Second one on the acquisition pipeline: I mean, obviously you've done smaller bolt-on deals fairly consistently over time. Is there going to be a bit of a pause, given, obviously, the big deal is done and you've got an awful lot of work to do?

[Analyst]: Second one on acquisition pipeline. I mean, obviously, you have done smaller bolt-on deals fairly consistently over time. Is there going to be a bit of a pause given obviously the big deal is done, you have got an awful lot of work to do, with the organic opportunities from these, they are obviously humongous.

Clyde Lewis: Second one on acquisition pipeline. I mean, obviously, you have done smaller bolt-on deals fairly consistently over time. Is there going to be a bit of a pause given obviously the big deal is done, you have got an awful lot of work to do, with the organic opportunities from these, they are obviously humongous.

Speaker #3: I mean, the organic opportunities from East still, obviously, are humongous. So does that get parked?

Simon Shaw: Yeah.

[Analyst]: Does that get parked?

Clyde Lewis: Does that get parked?

Speaker #2: I think not part, but really the next six months plus is all about generating the mutual benefit out of this large transaction we've done.

Simon Shaw: I think they are not parked, but really the next six months-plus is all about generating the mutual benefit out of this last transaction we have done. We will still do bolt-on infill things that, as I referenced earlier, which is a normal course of events. Where we have a gap to fill, we will fill it, but I would not expect a hero-style deal over the next few months at all. It is all about making the best of what we have now got, which is very exciting.

Speaker #2: We will still do bolt-on infill things that, as I've referenced earlier, are a normal course of events. Where we have a gap to fill, we will fill it.

Speaker #2: But I wouldn't expect a hero-style deal over the next few months at all. It's all about making the best of what we've now got, which is very exciting.

Speaker #3: I'll do one more now. So, the buddy system, and I suppose opportunities for Savills to piggyback on East still, and vice versa. I mean, six months on, maybe from when the deal was announced, you've had an awful lot of, I'm sure, interaction with them.

[Analyst]: I will do one more and then I will kick.

Clyde Lewis: I will do one more and then I will kick.

Simon Shaw: Okay.

[Analyst]: The buddy system and I suppose opportunities for Savills to piggyback on Eastdil and vice versa, I mean, six months on, maybe from when the deal was announced, you have had an awful lot of sure interaction with them. Where have your thoughts around the biggest opportunities for organic development sort of evolved to? What is the sort of top two or three areas that you can see evolving?

Clyde Lewis: The buddy system and I suppose opportunities for Savills to piggyback on Eastdil and vice versa, I mean, six months on, maybe from when the deal was announced, you have had an awful lot of sure interaction with them. Where have your thoughts around the biggest opportunities for organic development sort of evolved to? What is the sort of top two or three areas that you can see evolving?

Speaker #3: Where have your thoughts around the biggest opportunities for organic development evolved to? What are the top two or three areas that you can see evolving?

Speaker #2: I think, in no particular order, the obvious one is with a debt advisory business of scale in the organisation. We already have one in the UK—small, effective, but small and UK-focused.

Simon Shaw: I think, in no particular order, the obvious one is with a debt advisory business of scale in the organization. We already have one in the UK, small, effective, but small and UK-focused. Our clients around the globe could well do with that debt advisory capability that comes from the Eastdil side. So that's almost a no-brainer. I think the other area which is very exciting, and we've been bolstering our roster, as you heard, in this over the course of the last few months as well, is the whole area of digital infrastructure and data centers. I'm particularly interested in how Eastdil Secured Savills, and Savills can work together in the APAC region, which I think is incredibly exciting. It'll be the case in EMEA as well, but APAC is almost surging very, actually more.

Speaker #2: But our clients around the globe could well do with that debt advisory capability that comes from the East side, so that's almost a no-brainer.

Speaker #2: I think the other area, which is very exciting—and we've been bolstering our roster, as you heard, in this over the course of the last few months as well—is the whole area of digital infrastructure and data centres.

Speaker #2: And I'm particularly interested in how East still secured Savills, and how Savills can work together in the APAC region, which I think is incredibly exciting.

Speaker #2: It’ll be the case in a year as well, but APAC is almost urgent territory for us. So, I think those are two areas where you can really point to activity and potential quite quickly.

Simon Shaw: I think those are two areas where you can really point to activity and potential quite quickly. I think the rest of it is a long burn. We talked about synergies at the March announcement, so I've got every confidence that the sort of numbers we put out there are going to be obliterated in real life over a number of years as we look out.

Speaker #2: I think the rest of it is a long burn. We talked about synergies at the March announcement. I've got every confidence that the sort of numbers we put up there are going to be obliterated in real life.

Speaker #2: Over a number of years, as we look out. Morning, Chris Wellington at Deutsche. You've cooled down a bit now, I suppose, after getting in a little bit late this morning.

[Analyst]: Okay.

Clyde Lewis: Okay.

Chris Millington: Morning, Chris Millington at Deutsche.

Simon Shaw: You've cooled down a bit, Matt.

Chris Millington: Just about. Running a little bit late this morning. The first one's just a quick checking question about the dividend. Obviously, as you say, ahead of inflation, but somewhat lacking earnings growth. Is there any reason to think there's any sort of change there going forward, or we should keep a similar cut?

Speaker #2: Well, first one—just a quick check-in question about the dividend. Obviously, as you say, it's ahead of inflation, but somewhat lacks earnings growth. Is there any reason to think there's any sort of change there going forward, or should we expect a similar company policy?

Simon Shaw: No change to the policy at all. Clearly, the one thing that we'll need to work through is that we'll have a five-month contribution this year from Eastdil, but all the shares have been issued. But the approach around progressively growing the ordinary dividend, depending by the less transactional, faster supplemental dividend absolutely remains in place.

Speaker #1: No change to the policy at all. And clearly, the one thing that we'll need to work through is that we'll have a five-month contribution this year from East still, but all shares have been issued. But the approach around progressively growing the ordinary dividend, depending on the less transactional cost of supplemental dividend, absolutely remains in place.

Chris Millington: That's what I was hoping to hear. Next one is restructuring. What do you think the benefit this year is in terms of cost savings? I know it's always a bit difficult to get underneath, but what do you think the

Speaker #2: That's what I was hoping to hear. Next one is restructuring. What do you think the benefit this year is, in terms of cost savings?

Speaker #2: I know it's always a bit difficult to get underneath, but what do you think the cost is?

Simon Shaw: I think it's very difficult because obviously you've got uncovered business development costs as well. Take our Australia business. We've invested a lot in Australia and starting to see the results both in reality in the P&L, but also in pipeline.

Speaker #3: I think it's very difficult because, obviously, you've got business development costs as well. Take our Australia business—we've invested a lot in Australia and are starting to see the results, both in reality in the P&L, but also in pipelines.

Chris Millington: Okay.

Speaker #2: But if you took a gross benefit, before that additional cost load, I'd suggest it's around half the £13 million—around half, about £6 million—that we guided to last year.

Simon Shaw: If you took a gross benefit before that additional cost load, I would suggest it is around half the GBP 13 million, around half, about GBP 6 million of it, that we guided to last year in this period.

Speaker #2: In this period, very helpful, given they were cracking up D2 and whatnot. APAC, the page you showed—the kind of backdrop of market conditions.

Chris Millington: Very helpful. Getting there with question about D2. APAC, the page you showed the backdrop of market conditions, and APAC looks fairly flat. We know it is not flat, and you would need to go a little bit further back in the chart to show that. Perhaps you can give us a context of where Asia is now, where it used to be.

Speaker #2: And APAC looks fairly flat. Now, we know it's not flat, and you'd need to go a little bit further back in the chart to show that.

Speaker #2: But perhaps you can give us a context of where Asia is now, where it used to be, and perhaps a bigger focus on mainland China and Hong Kong, which were clearly half of the balanced deals.

Simon Shaw: Yeah.

Chris Millington: Perhaps a bigger focus on mainland China, Hong Kong, which is clearly heartland Savills.

Speaker #3: Yeah, I think—not to go on about it for too long—but I think one of the big differences is Asia and our Asia business has historically been very Sino-centric.

Simon Shaw: Yeah, I think, not to go on about it for too long, but I think one of the big differences about Asia and our Asia business has historically been very Sino-centric. It has been really around greater China. So mainland China, Hong Kong, and indeed Taiwan, Chinese Taipei as well. We have consciously sought to build our business in Australia and Japan over time. Those are the two markets that have actually strengthened somewhat over the course of this first 6 months. We have also seen a strengthening of the Chinese market, both Hong Kong and mainland China, but candidly off a very low base of last year. So I would expect to see further growth coming through in the next 18 months or so in that traditional heartland of the Sino axis.

Speaker #3: It's been really around Greater China—so, mainland China, Hong Kong, and indeed Taiwan (Chinese Taipei) as well. We have consciously sought to build our business in Australia and Japan over time.

Speaker #3: Those are the two markets that have actually strengthened somewhat over the course of these first six months. And we've also seen a strengthening of the Chinese market, both Hong Kong and mainland China, that, candidly, offer a very low base off last year.

Speaker #3: So, I would expect to see further growth coming through in the next 18 months or so in that traditional heartland of the Sino axis.

Speaker #3: But I'm also very excited about the things that we're doing in Australia and Japan that will leverage underlying market growth in those markets. Not to leave aside Singapore, Korea, et cetera, but those are the material ones where there's significant value on an international scale.

Simon Shaw: I am also very excited about the things that we are doing in Australia and Japan that will leverage underlying market growth in those markets. Not to leave aside Singapore, Korea, et cetera, but those are the material ones where there is significant value on an international scale.

Speaker #2: And sorry, this is the final one. Investment management—the only bit we didn't really move forward. What's the outlook for capital raising in the second half?

Chris Millington: Sorry, this is the final one. Investment management, the only bit which did not really move forward. What is the outlook for capital raising in the H2? Also, do you think the business now needs additional scale to kind of keep up where you are? Is that still a big focus point to move that ahead?

Speaker #2: But also, do you think the business now needs additional scale to kind of keep up with where you are? I mean, is that still a big focus point—to move that ahead?

Speaker #3: Yeah, I think we're looking at it at the moment under new leadership, both at the Chief Executive level and also in the crucial Japanese market, where we've recruited a very strong individual from the market to run our business there.

Simon Shaw: Yeah, I think we are looking at it at the moment under new leadership, both at the chief executive level and also in the crucial Japanese market, where we have recruited a very strong individual from the market to run our business there. The honest answer is that raising capital for core and potentially core plus blind pool real estate funds is very difficult. So we are doing a lot more in the region of joint ventures and partnerships with almost as local operating partner, with private equity. I do see that as a significant part of the long-term future. What I am doing at the moment is allowing new leadership to come up with their plan for the next period, which of course, we will be discussing with Savills, our partner in Savills Investment Management.

Speaker #3: The honest answer is that raising capital for core and potentially core-plus blind pool real estate funds is very, very difficult. So we're doing a lot more in the region of joint ventures and partnerships, almost as a local operating partner with private equity.

Speaker #3: And I do see that as a significant part of the long-term future. But what I'm doing at the moment is allowing new leadership to come up with their plan for the next period, which, of course, we'll be discussing with Samsung, our partner in standard investment management.

Speaker #2: Thank you.

Chris Millington: Thank you.

[Analyst] (UBS): Good morning, it's Andrew from UBS. Just a simple question from me on UK residential. Obviously, you are trying to cut costs for obvious reasons, but are you seeing any light in the tunnel into age? I guess with the Renters' Rights Act specifically, that will continue to drag because you have the 12-month run rate of monthly collections for that.

Speaker #4: Morning, New South UK from EBS. Just one question from me. On UK residential—obviously a challenging first half for obvious reasons, but are you seeing any light at the end of the tunnel into the second half?

Speaker #4: I guess with the Renters' Rights Act specifically, that will continue to drag because you need to put in a 12-month run rate of monthly collections for that to reverse to normal.

Simon Shaw: Yeah

[Analyst] (UBS): reversible. But then more on the sales market, on the burn, are we seeing anything to be slightly more positive about? People talking about help to buy potentially coming back. Any thoughts you had around that market picking up or is it just going to remain difficult?

Speaker #4: But then, Morgan, on the sales market, under burn, are we seeing anything to be slightly more positive about? People are talking about Help to Buy potentially coming back. Do you have any thoughts around that market picking up, or is it just going to remain difficult?

Speaker #3: Yeah, I think it's definitely a neat space market, without question. And I do think we are pretty resilient, but at the sort of levels that we've talked about in the first half.

Simon Shaw: Well, I think it is a definitely needs-based market, without question about it. I do think we are pretty resilient, but at the levels that we have talked about in H1. On a macro level for the UK business, I would say our international business is performing pretty well, but is naturally a bit smaller still than the UK. For the UK business as a whole, I think there is a genuine need. Markets like a degree of certainty and clarity over cost. I think when we get past the first Healey budget at the end of October, we will start to get that clarity which we so badly need. Obviously, any demand side in consensus would be very positive, and there are plenty of house builders quite rightly who would like to see that. But clarity is above all what we need.

Speaker #3: On a sort of macro level, for the UK business, I would say our international business is performing pretty well, but it's naturally a bit smaller still than the UK.

Speaker #3: For the UK business as a whole, I think there is a genuine need. Markets like a degree of certainty and clarity over the past period.

Speaker #3: And I think when we get past the first Healy budget at the end of October, we'll start to get that clarity which we so badly need.

Speaker #3: Obviously, any demand-side incentive would be very positive, and there are plenty of house builders—quite rightly—who would like to see that. But clarity, above all, is what we need.

Speaker #2: Zach, I would just add that, on a like-for-like basis, our UK residential leasing business was up—like for like. And that, I think, goes back to one of Simon's comments earlier.

Nick Sanderson: Nick, I would just add that on a like-for-like basis, our UK residential leasing business was up.

Simon Shaw: Yeah.

Nick Sanderson: Like for like. That, I think, is going back to one of Simon's comments earlier, in more challenging markets, and this is a more challenging environment to be a landlord, you go to the best advisors to help you. So this year's numbers will be lower within that part of business just because of the timing of the invoicing now associated with that work. But like for like, business is doing very well, led by Andrew over here.

Speaker #2: In more challenging markets—and this is a more challenging environment to be a landlord—you go to the best advice to help you. Clearly, this year's numbers will be lower within that part of the business, just because of the timing of the invoicing now associated with that work.

Speaker #2: But like for like, business is doing very well, led by Andrew over here.

Speaker #3: That's a very good point. Anybody else?

Simon Shaw: That is a very good point. Anybody else?

Speaker #5: Good morning, James Fletcher here from Berenberg. Three, if I may—sorry about that. Could you give us a bit more colour on the Middle East, beyond just its impact on the transaction advisory business—kind of sentiment?

James Fletcher: Good morning. James Fletcher here from Berenberg. Three, if I may. Sorry about that. Can you give us a bit more color on Middle East than just its impact on transaction advisory business sentiment? I do not think we touched on it too much. Perhaps we should do one at a time.

Speaker #5: So I don't even touch on it too much then. Or, perhaps, we should do one at a time.

Speaker #3: Yeah, okay. Well, first up, Middle East. I mean, obviously, still a relatively new business in residential transactional terms for us. Very strong Q1.

Simon Shaw: Well, first up, Middle East. Obviously, still a relatively new business in residential transactional terms for us. Very strong Q1. With the conflict, that really had an impact on new development sales. It is really a secondary sales market at the moment as people who are living there start to trade up when they see the opportunity to do so. But critically, the major developments in Dubai are somewhat slower to the market at the moment, as you can imagine, for obvious reasons. Abu Dhabi is a little bit stronger, and Egypt is performing very well, too, which is excellent news. But it definitely will stall the trajectory, which was stratospheric over the last 18 months in residential sales in the Middle East. It will stall that for a bit, but that is inevitable.

Speaker #3: With the conflict, that really had an impact on new firm sales. It's really a secondary sales market at the moment, as people who are living there start to trade up when they see the opportunities to do so.

Speaker #3: But critically, the major developments in Dubai are somewhat slower to the market at the moment, as you can imagine, for obvious reasons. Abu Dhabi is a little bit stronger.

Speaker #3: And Egypt is performing very well too, which is excellent news. But it definitely will stall the trajectory, which has been stratospheric over the last 18 months in residential sales in the Middle East.

Speaker #3: It'll stall that for a bit, but that's inevitable.

Speaker #5: Perfect. And then, the second one was just on synergies. I wondered—data centres and debt advisory have been talked about. I wondered what the US client base was thinking about the prospect of having some of the less transactional services that you deliver.

James Fletcher: Okay. Second one was just on synergies. I wondered, you talked about data centers and debt advisory. I wonder what the US client base were thinking about prospects of having the less transactional services that you deliver. Is there any signs of positivity there to synergies?

Speaker #5: Are there any signs of positivity there in terms of synergies?

Speaker #3: Well, it's very, very early days. But I was lucky enough to be invited to the Eastal Secured Private Equity Conference in Utah about five, six, seven weeks ago now, which is C-suite of global private equity.

Simon Shaw: Well, it is very early days. I was lucky enough to be invited to the Eastdil Secured Private Equity Conference in Utah about five, six, seven weeks ago now. Which is C-suite of global private equity. All I can say is that the goodwill towards the Eastdil Secured Savills combination was extraordinary. I very much hope that we would see more activity out of that. It is sort of glorified halo effect, actually, from how we described these things back in March. I am pretty sure we will see that. It will take time to kick in, but we will see it.

Speaker #3: And all I can say is that the goodwill towards the Eastal-Savills combination was extraordinary, and I very much hope that we will see more activity out of that.

Speaker #3: It's sort of a glorified halo effect, actually, from how we described these things back in March. And I'm pretty sure we will see that. It'll take time to kick in, but we'll see it.

Speaker #5: Great. And then, the final one was just on where I'm at on seasonality in regards to Eastal. I think you might have mentioned this briefly, Nick. Just going forward, what should we think of as a normalized kind of H1/H2 split?

James Fletcher: Great. Final one was just on, wait a minute, on seasonality with regards Eastdil. I think you might have mentioned this briefly, Nick. Just going forward, what should we think as an authorized

Simon Shaw: H1, H2. I do not think you give a comp for even the half full year.

Speaker #5: I don't think you did give a comp for EBITDA for last year.

Nick Sanderson: That is partly because there is track record associated. Again, it is lumpiness. What I would say is if you look at Savills over the last 10 years, the weighting has been anywhere from 15% through to 35% profit H1 versus balance in the H2. They are much nearer the kind of 35%/40% H1, H2. I think with regards to the guidance that we have given suggesting that the five-month contribution will be broadly similar to their H1 is partly because the fact they had such a strong H1. We also know in a market like we are having at the moment, particularly given a lot of their deals tend to be larger, there is a timing risk associated with them. So the overall seasonality within the enlarged group will be lower going forward than proven historically.

Speaker #2: And that's partly because there is, let's try, for record, associated again—it's lumpiness. But what I would say is, if you look at Savills over the last 10 years, the weighting has been anywhere from 15% through to balance in the second half.

Speaker #2: They are much nearer the kind of 35, 40—first half, second half. I think, with regards to the guidance that we've given, suggesting that the five-month contribution will be broadly similar to their first half, is partly because of the fact they had such a strong first half.

Speaker #2: And we also know that in a market like we're having at the moment, particularly given a lot of their deals tend to be larger, there is a timing risk associated with them.

Speaker #2: So, the overall seasonality within the enlarged group will be lower going forward than it has been historically.

Simon Shaw: Brilliant. Thank you. Angela or Susie, you have got one online, I think.

Speaker #5: Great. Thank you.

Speaker #3: Anything else, Susie? You've got one online, I think.

Speaker #4: Yeah, I've got one from Dan Cowen at VMP. How about: Are there any specific risks you perceive from the changed UK political landscape, or is it just general macro policy risk?

Susie Bell: Yeah, I have got one from Dan Cowan at BNP Paribas. Are there any specific risks you foresee from the changed UK political landscape, or is it just general macro policy risk?

Speaker #3: Well, obviously, we shelter under macro policy—full stop—across the board in the UK. I think I don’t foresee any specific risks.

Simon Shaw: Well, obviously we shelter under macro policy full stop across the board in the UK. I do not foresee any specific risks. There are a lot of sound bites all over the place as there always are, and we are getting used to those in any given moment in the UK. I do think I would reemphasize that clarity is the important thing. More than anything else, that is what people can react to, and work on. You done? Unless there are any more questions, thank you very much for your attention and time today. Look forward to updating you in March. Bye.

Speaker #3: There are a lot of sound bites all over the place. There always are, and we're getting used to those in any given moment in the UK. But I do think I would re-emphasise that clarity is the important thing.

Speaker #3: More than anything else, that's what people can react to and work on. You done? Unless there are any more questions? Thank you very much for your attention and time today.

Speaker #3: Look forward to updating you in March.

Speaker #2: Thanks.

Operator: Goodbye

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