Helping people
thrive through
places and spaces
ANNUAL REPORT AND ACCOUNTS 2023
Helping people
thrive through
places and spaces
It could be a sustainable office that sparks creativity, or
a home that gives a family room to grow; a development
focused on the needs of the local community, or a rural
estate consciously managed for biodiversity.
Whether you are an investor, client, colleague, or live
in the communities in which we operate, our goal is
simple: to help our stakeholders thrive through
places and spaces.
SEE OUR BUSINESS MODEL ON PAGES 10 AND 11
Mark Ridley
CEO
Places and spaces are more than land or bricks and
mortar. They’re where people create new ideas,
build memories and plan futures.
Contents
OVERVIEW
02 Group highlights
05 Savills at a glance
STRATEGIC REPORT
06 Chair’s statement
10 Our business model
12 Market insights
18 Key performance indicators
20 Chief Executive’s review
27 Chief Financial Officer’s review
30 Principal and emerging risks and uncertainties
facing the business
37 Viability statement
38 Responsible business
74 Task Force on Climate-Related Financial
Disclosures (‘TCFD’)
GOVERNANCE
81 Governance Overview
81 Applying the Principles of the 2018 UK Corporate
Governance Code
82 Leadership and Company Purpose
82 Chair’s Introduction
84 Governance at a Glance
86 Board of Directors
89 Group Executive Board
92 Board Leadership and Company Purpose
93 Board Attendance in 2023
94 Promoting a Positive and Inclusive Culture
96 How we engage with our stakeholders
99 Section 172(1) statement
103 Division of Responsibilities
103 A robust governance framework
104 Division of Responsibilities
108 Composition, Succession and Evaluation
108 What the Board did in 2023
110 Nomination & Governance Committee Report
115 Board and Committee Evaluation
117 Audit, Risks and Internal Controls
117 Review of the effectiveness of the risk management
and internalcontrol systems
118 Audit Committee Report
127 Directors’ Remuneration Report
127 Annual statement
151 Directors’ Report
155 Statement of Directors’ responsibilities in respect
of the financial statements
FINANCIAL STATEMENTS
156 Independent Auditor’s Report
166 Consolidated income statement
167 Consolidated statement of comprehensive income
168 Consolidated and Company statements of financial position
169 Consolidated statement of changes in equity
170 Company statement of changes in equity
171 Consolidated and Company statements of cash flows
172 Notes to the financial statements
265 Appendices
267 Shareholder information
OVERVIEW FINANCIAL STATEMENTSGOVERNANCESTRATEGIC REPORT
01
The Group produced a resilient
performance in 2023 in the face
of sharply increased interest
rates and the consequent
dramatic reductions in
transaction volumes globally.
GROUP HIGHLIGHTS
Reported profit after tax
£39.5m
(2022: £119.8m)
£119.8m
£39.5m
2022
2023
Reported earnings per share
30.0p
(2022: 87.0p)
87.0 p
30.0p
2022
2023
Underlying profit**
£94.8m
(2022: £164.6m)
£164.6m
£94.8m
2022
2023
Underlying earnings per share**
55.1p
(2022: 94.9p)
94.9p
55.1p
2022
2023
Balance (non-transactional)*
65%
(2022: 60%)
60%
65%
2022
2023
Revenue
£2,238.0m
(2022: £2,298.3m)
£2,298.3m
£2,238.0m
2022
2023
02
Annual report and accounts 2023
During 2023, global real estate markets have faced the obvious
challenges associated with inflation and the related steep rise in
interest rates. Different regions have varied in the pace of their
adjustment to current conditions and all have experienced a
material decline in trading volumes during that adjustment process.
TheGroup’s performance is inline with our expectations following
thisprolonged recalibration of markets.”
Mark Ridley
CEO
SEE PAGES 20 TO 26
* Defined as the % of Group revenue derived from non-transactional revenue streams. See Non-Financial Key Performance Indicators on page 19 for
furtherinformation.
** Underlying profit is an alternative performance measure used to assess the performance of the Group. Underlying profit is calculated by adjusting reported
pre-tax profit for profit/loss on disposals, share-based payment adjustments, amortisation and impairment of intangible assets arising from business
combinations, impairment of goodwill, significant restructuring costs, transaction-related costs and other items that are considered significant in size or non-
operational in nature. Underlying EPS is also an alternative performance measure used to assess the performance of the Group. Underlying EPS is calculated
using the underlying profit after tax measure, with the weighted average number of shares remaining the same as the GAAP measure. Refer to Note 2.3 and
Note 8 to the financial statements for further explanation of underlying profit measures.
*** Reported pre-tax profit margin is an alternative performance measure calculated by dividing profit before income tax by revenue.
**** Estimated position as at 31 December 2023, 2022 comparative as reported in the 2022 Report and Accounts.
Underlying profit margin**
4.2%
(2022: 7.2%)
7.2%
4.2%
2022
2023
Reported pre-tax profit margin***
2.5%
(2022: 6.7%)
6.7%
2.5%
2022
2023
Operating cash generation
£18.8m
(2022: £164.0m)
£164.0m
2022
2023
Assets under management (‘AUM’)
£22.1bn
****
(2022: £22.1bn)
£22.1bn
£22.1bn
2022
2023
Property under management (sq ft.)
2.6bn
(2022: 2.5bn)
2.5bn
2.6bn
2022
2023
Geographical spread (% non-UK)
58%
(2022: 58%)
58%
58%
2022
2023
£18.8m
03
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
680+
Offices and
associates
42,000+
Staff
United Kingdom
42%
Continental Europe
and the Middle East
15%
£2.2bn
Group revenue
WHAT WE DO
Asia Pacific
30%
North America
13%
04
Annual report and accounts 2023
Our vision is to be the real estate advisor of
choice in the markets we serve. We do not
wish to be the biggest, just the best.
Demonstrating
geographic and
business diversity
CONTINENTAL EUROPE
AND THE MIDDLE EAST
£941.5m
Revenue
(2022: £956.3m)
£659.0m
Revenue
(2022: £669.7m)
131
Offices
(2022: 130)
9,454
Employees
(2022: 9,036)
57
Offices
(2022: 57)
28,412
Employees
(2022: 27,462)
UNITED KINGDOM ASIA PACIFIC
£342.4m
Revenue
(2022: £335.0m)
£295.1m
Revenue
(2022: £337.3m)
63
Offices
(2022: 57)
3,220
Employees
(2022: 2,888)
43
Offices
(2022: 43)
994
Employees
(2022: 945)
NORTH AMERICA
Where our
expertise lies
For nearly 170 years, we have
been helping people thrive
through “places and spaces”.
At the forefront of the real
estate industry and with over
42,000 professionals working
collaboratively across our
global and local networks, we
offer a huge range of services
and specialist expertise to
ensure our clients achieve the
bestoutcomes.
TRANSACTION ADVISORY
The Transaction Advisory
business stream comprises
commercial, residential, leisure
and agricultural leasing, tenant
representation and investment
advice on purchases and sales.
SEE PAGES 22 AND 23
PROPERTY AND
FACILITIES MANAGEMENT
Management of
commercial,residential,
leisureand agricultural
property for owners.
Provisionof a comprehensive
range of services to occupiers
of property, ranging from
strategic advice through to
project management and all
services relating to a property.
SEE PAGE 24
INVESTMENT MANAGEMENT
Investment management of
commercial and residential
property portfolios for
institutional, corporate or
private investors, on a pooled
or segregated account basis.
SEE PAGE 26
CONSULTANCY
Provision of a wide range of
professional property services
including valuation, project
management and housing
consultancy, environmental
consultancy, landlord and
tenant, rating, development,
planning, strategic projects,
corporate services and research.
SEE PAGE 25
SAVILLS AT A GLANCE
Our global size and strength
We have an international network of over 680 offices and associates and
over 42,000 staff throughout the UK, Asia Pacific, the Americas, Continental
Europe, Africa and the Middle East, offering a broad range of specialist
advisory, management and transactional services to clients all over the world.
05
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Resilient performance
in challenging markets
driven by the Group’s
less transactional
service lines.”
Stacey
Cartwright
Chair
Results overview
Savills strength across its less transactional service
lines continued to provide a resilient earnings stream,
underpinning Savills overall performance in a global
real estate market challenged by significantly reduced
transactional activity. The Group’s revenue decreased
by 3% to £2.2bn (2022: £2.3bn), 2% down on a constant
currency basis. Although not immune to market
volatility(particularly in respect of some Consultancy
service lines), the strength of our less transactional
businesses underpinned Savills performance overall,
growing revenue by 7% to £1.5bn. Prime drivers
of performance were Consultancy and Property
Management, which performed well, growing revenue
by4% and 11% respectively.
The Group’s Transactional business experienced a
17% drop in revenue during the year as global market
conditions remained extremely subdued for longer than
anticipated at the start of 2023. This was the primary
cause of the 42% reduction in the Group’s underlying
profit of £94.8m (2022: £164.6m), representing an
underlying profit margin of 4.2% (2022: 7.2%).
Our Investment Management business traded in line with
our expectations, although deployment of capital was
inevitably reduced given lack of price transparency in
most of its target markets.
Chair’s statement
06
Annual report and accounts 2023
At the year end, Savills Investment Management had
significant investment ‘dry powder’ for both real estate
equity and debt opportunities, including Samsung Life
having committed its first $1bn to support a number
ofproducts.
As a result of the challenging market conditions during
2023, the real estate services industry as a whole
undertook a number of rounds of cost reduction and
reorganisation actions. In line with our strategy during
the global financial crisis of 2008, as well as more
recently through the pandemic, and supported by our
strong financial position; Savills continued to maintain
its core bench-strength around the world, ensuring
we provided the highest level of service to our clients
throughout the year and remain well positioned for
market recovery.
We did, however, review the global business for
locationsor service lines where the anticipated time
frames for market recovery remain protracted. This
resulted in selective restructuring of certain transactional
and related support teams and resulted in one-off costs
of £13.9m being incurred.
The costs of this restructuring led Group’s reported
profit before tax to decrease by 64% to £55.4m (2022:
£153.9m), representing a pre-tax profit margin of 2.5%
(2022: 6.7%).
The Group continued to maintain a positive liquidity
position with net cash (cash and cash equivalents net
of borrowings and overdrafts in the notional pooling
arrangements) of £157.3m at year end (2022: £307.4m).
Currency movements in the year decreased revenue by
£14.4m, underlying profit by £0.7m and reported profit
before taxation by £1.1m.
Market conditions
Throughout the year, real estate markets across the
globe were challenged by significantly increased interest
rates, geopolitical events and, on a more asset specific
level, uncertainties over the future role of offices and the
valuation of existing stock in the era of sustainability. These
factors, together with certain location-specific issues,
significantly reduced capital transaction volumes in global
markets to their lowest levels for a decade. In addition,
economic uncertainty led to delays in corporate occupiers
committing to new leasing activity in many markets.
The value recalibration process took time to catalyse
market liquidity, with the majority of lending banks
continuing to extend existing loan terms. The
consequence of this was that global market conditions
remained extremely subdued for longer than originally
anticipated at the start of 2023.
However, in Q4 2023 we began to see lenders start
to exercise their security rights. This began to have a
positive effect on market activity towards the year end
and should be a catalyst for improved volumes in 2024.
The rate at which individual investment markets are
recalibrating varies around the globe; however, it appears
that the UK prime Commercial market has re-priced to
a point where it represents value, particularly for assets
with strong sustainability credentials, for which there
is significant occupier demand. In addition, our Prime
residential business has performed well, particularly in
central London. As anticipated a year ago, residential
markets outside London were more subdued as volumes
reverted to more normal levels of activity after the
abnormally large volumes transacted post-pandemic.
In Europe, investment transaction volumes reached
their lowest levels since the eurozone debt crisis. The
slowing of investment activity quarter-by-quarter was a
widespread trend across all European countries and the
major asset classes, with the office sector continuing to
face the most significant reduction in volume.
In the Asia Pacific region, property investment volumes
overall fell by 33% in 2023. China experienced increasing
debt-related difficulties amongst the major domestic
developers in addition to the macro trends affecting
manufactured supply to international markets. Other
markets in the region were affected by the sharply higher
cost of borrowing, with significant volume declines in
the mature markets of Australia and South Korea. Hong
Kong was one of two markets which recorded only a
single digit decline, however this was off an already very
low base with volumes still 70% below their previous
peak in 2018.
In North America, the office market remained sluggish
as economic uncertainty, questions over the return to
offices, particularly in the major metropolitan markets
of the East and West Coast, and slowing employment
growth caused corporates to delay major leasing
decisions, pending greater clarity.
Group revenue down 3% to £2.2bn
(2022:£2.3bn)
Underlying profit before tax decreased 42%
to £94.8m (2022: £164.6m)
Reported profit before tax, including
exceptional costs, decreased 64% to£55.4m
(2022: £153.9m)
Underlying basic EPS down 42% to 55.1p
(2022: 94.9p); reported basic EPS down
66%to 30.0p (2022: 87.0p)
Aggregate proposed final and
supplementary interim dividends of 15.9p
(2022: 29.0p), giving a total distribution for
the year of 22.8p (2022: 35.6p)
Net cash of £157.3m (2022: £307.4m)
2023 HIGHLIGHTS
07
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
CHAIR’S STATEMENT continued
Business development
Savills has continued to focus on the strategic
development of the business and improving our service
offering to clients; this has been enabled by the Group’s
strong balance sheet. In the first half of the year, we
progressed our strategy of expanding our Global Prime
Residential services with the acquisition of agencies in
Italy (BeLiving Srl) and Portugal (Predibisa, Sociedade
de Mediaçāo Imobiliária, Lda). The Group also acquired
Automotive Property Consultancy Holdings Limited,
a specialist property consultancy dedicated to the
franchised motor retail sector in the UK.
In the second half of the year, the Group acquired
Site 8Pty Limited, expanding our retail property
management business in Australia. The UK business
recently completed the acquisition of Nash Bond
Limited, a leading UK prime retail agency and lease
consultancy business, enhancing our position in this
recovering market. Finally, DRC Savills Investment
Management established the Group’s first position in the
US real estate debt market through a joint venture with
QCP LLC, a real estate debt manager based in Atlanta.
Supported by our strong balance sheet we continue
to review opportunities to enhance our client offering
across geographies and service lines.
Focus on technology
Technology continues to be an important focus
for the Group, and we are well on the way through
implementation of significant platform upgrades across
the globe including both operating and finance systems
and service-specific digital transformation programmes.
We continue to investigate and experiment with new and
emerging technologies through our innovation and data
teams globally. Recently there has been an increased
focus on the opportunities presented by the latest
developments in the broad area of artificial intelligence
(‘AI’), or ‘Machine Learning’, which we use as a driver
of efficiency in many of our bespoke data and service
line platforms across the Group. One example of this is
BrickByte in Germany, which was acquired by the Group
in 2022. It is a technology-enabled method of workspace
planning, driven by Machine Learning, to save time and
optimise the use of space, and which has significantly
increased its revenues year-on-year.
Our other digital businesses continue to perform well.
Cureoscity, our wholly-owned platform that connects
occupiers, landlords and their managing agents continued
to grow Annual Recurring Revenue (‘ARR’) significantly
year-on-year and has begun to expand into markets outside
the UK. Our market-leading UK on-line auction business
continues to take market share, and despite increasingly
challenging markets, sold over £570m of property during
the period, an increase of 25% year-on-year.
Through our wholly owned technology businesses and
investments, we are experimenting with the latest advances
in generative design particularly to test project feasibility
at an earlier stage in the design process. For example,
VU.CITY (in which the Group has an investment) uses its
Climate: Through our advice to clients and the
work we do directly, we always seek to add value
through initiatives that help both people and our
environment to thrive. In 2023, our absolute Scope
1 and 2 ‘market-based’ Greenhouse Gas (‘GHG’)
emissions totalled to 5,947 tonnes CO
2
e, which is
a 26.9% (2,187 tonnes CO
2
e) reduction against our
2019 base year. When assessed on an annual basis,
we have seen a 11% reduction in the Group’s Scope
1 and 2 emissions, associated with a 6% decrease in
electricity consumption and an increase in uptake of
green tariffs. To drive our de-carbonisation journey,
in 2023, we increased the usage of efficient LED
lighting, for example, in Continental Europe and the
Middle East, where 80% of occupied floor area now
has LED. As a result of our strategy in respect of
office lease renewals, by year end 87% of total office
space occupied by Savills in North America is now
situated in accredited, energy efficient buildings.
Culture: We actively foster an inclusive workplace
– aiming to attract diverse talent, develop and
support our people, and always lead by example.
In 2023, Savills UK won EDI (Equality, Diversity,
and Inclusion) Programme of the Year at Inspiring
Women in Property Awards hosted by Property
Week. Similarly, Bisnow’s UK Rise Initiative
recognised Savills UK as one of the companies
leading the way to improve diversity in real estate.
Savills North America has placed 21st in the
Newsweek Excellence 1000 Index, identified as an
example of corporate success and responsibility.
Meanwhile, Savills was awarded UK Apprenticeship
Employer of the Year at the Personnel Today
Awards and was 1st in The Times Rate My
Placement for Apprentices and listed Top 100
Apprenticeship Employers of 2022 – 2023.
Community: People are at the heart of our
business. We aim to create a lasting positive social
impact on the local communities which we impact
through the way we engage with them, the work
we do and the charitable initiatives we run to
support them. During 2023, 24,300 hours were
given by our people for volunteering, an increase
from 16,700 in 2022. In addition, £2.1m was donated
by the Group and combined Regional Businesses;
with £4.7m Social and Local Economic Value
delivered by Savills UK.
SUSTAINABILITY IN REAL ESTATE
SiteSolve technology combined with complete digital
city models at ‘planning grade’ levels of accuracy, to
generate instant development options, taking into account
environmental and other extant planning constraints.
We maintain our policy of continuing to support
technology initiatives across the Group, striking the
balance between locally led innovation and broader
centralised initiatives.
08
Annual report and accounts 2023
4.2%
Underlying
profit margin
(2022: 7.2%)
£39.5m
Reported
profit after
tax
(2022: £119.8m)
Board
On 1 January 2024, I became Chair on the
retirement of Nicholas Ferguson. Since
he was appointed in May 2016, Savills has
both delivered commendable growth and
successfully navigated the challenges of both
COVID and the market corrections of the last
two years. I would like to thank him for his
enormous contribution to the business.
On 13 December 2023, John Waters was
appointed as an additional Independent
Non-Executive Director and replaced me as
Chair of the Savills Audit Committee with effect from
1January 2024. We are delighted that John has joined the
Board and look forward to benefitting from his extensive
experience to support our future growth.
Dividends
An interim dividend of 6.9p per share (2022: 6.6p),
amounting to £9.4m was paid on 2 October 2023, and a
final ordinary dividend of 13.9p per share (2022: 13.4p) is
recommended, making the ordinary dividend 20.8p per
share for the year (2022: 20.0p). A supplemental interim
dividend of 2.0p per share (2022: 15.6p) is declared,
taking into account the significantly reduced underlying
performance of our Global Transaction Advisory
business. Taken together, the ordinary and supplemental
interim dividends comprise an aggregate distribution for
the year of 22.8p per share, representing a decrease of
36% on the 2022 aggregate ordinary and supplemental
dividend of 35.6p.
Subject to Shareholder approval of the proposed final
dividend at the AGM on 15 May 2024, the aggregate final
and supplementary interim dividends of 15.9p will be
paid on 23 May 2024 to Shareholders on the register at
12 April 2024.
People
On behalf of the Board, I wish to express my thanks to all
our people worldwide for their hard work, commitment,
collaborative approach and continued focus on client
service, which enabled the Group to deliver results in line
with our expectations in such challenging times.
Summary and outlook
Savills resilient performance in 2023 highlights the diversity
and strength of our global business. In the context of
extremely challenging real estate markets, which saw the
lowest levels of transaction volumes for a decade, our less
transactional businesses have provided a solid platform for
the Group with a resilient and growing earnings stream.
With increased expectation of a reduction in the cost of
capital being likely during 2024, we expect re-financing
driven activity and the sustainability agenda to be positive
for transaction volumes, and therefore improving price
transparency, in a number of markets. There also remain,
for the near term at least, questions over office utilisation
in certain locations, perhaps most keenly felt in the North
American metropolitan markets of the eastern and
westernseaboards.
Current economic and geopolitical conditions remain
uncertain and although we expect this to continue for
some time, most markets appear to be past the moment of
peak uncertainty. There are some early signs of underlying
market improvements, which should set the course for a
broader recovery during the second half of the year and
into 2025.
Our policy of retaining our core bench-strength, enabled
byour strong balance sheet, positions the Group well for
the future.
Stacey Cartwright
Chair
13 March 2024
£94.8m
Underlying profit
(2022: £164.6m)
£2,238.0m
Revenue
(2022: £2,298.3m)
09
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
OUR BUSINESS MODEL
The model below illustrates in simple terms how we create
Shareholder value through improving the strength of our
premium brand, and through the delivery of profits and dividends
to Shareholders. We treat every client as an individual and
take time to understand what they need and how we can best
servicethem.
For over 160 years, we have been helping
people thrive through places and spaces.
With more than 42,000 professionals
dedicated to commercial and prime
residential real estate across 70 countries,
we have the expertise to bring a client’s
vision to life.
We firmly believe that our people are
key to delivering excellent service to
our clients and achieving our objectives;
they give us a unique perspective of the
markets in which we operate and connect
our clients with real estate opportunities
and market intelligence.
The culture ingrained in our business is
what sets us apart, guiding the way our
people behave to bring our clients the
best possible service.
We have built our brand and reputation
on the quality of our people, relationships,
resources and processes. Savills has
a strong and well-embedded culture,
founded on an entrepreneurial approach
and on our values and operational
standards. All that we do is underpinned
by strong governance, a disciplined
approach to risk management and
high standards of responsibility, which
supports the sustainable development
of our business. More detail of our
governance structure, policies and
practices can be found later in this
AnnualReport on pages 81 to 155.
We are committed to delivering the
highest levels of client service and
creating long-term relationships with our
clients. We are committed to adding value
while always honouring our responsibility
to protect the environment, support
local communities and foster an inclusive
culture. Whether our client is a corporate
business looking to expand, an investor
seeking to sustainably optimise their
portfolio or a family trying to find a new
home, we bring a truly personal approach
to every project, delivering best-in-class
insights and advice to help our clients
make better property decisions.
Local knowledge
Entrepreneurial
approach
Client care
programmes
High-quality service
Market intelligence
Brand and reputation
Prudent capital structure
Strong cash generation
Our resources & relationships1
FINANCIAL
LONG-TERM CLIENT
RELATIONSHIPS
OUTSTANDING PEOPLE
INTELLECTUAL
PROPERTY
10
Annual report and accounts 2023
40%
Property and
facilities
management
26%
Commercial
transactions
20%
Consultancy
9%
Residential
transactions
5%
Investment
management
DEFENSIVE,
SCALE BUSINESS
CYCLICAL HIGH-MARGIN
BUSINESSES
REVENUE BY BUSINESS
OUR GLOBAL VALUES
We listen – We put our
clientsat the heart of
everything we do. We listen
to our clients’ unique needs
and take time to understand
their aspirations, responding
with bespoke solutions to help
them achieve theirgoals
We empower – Our experts
pioneer new approaches,
bringing fresh ideas and
informed insights to thetable
We challenge – We are always
open and honest in our views,
constructively challenging our
clients and each other in the
pursuit of the best results
We collaborate – We
collaborate with our clients
to build personal, lasting
relationships, uniting diverse
perspectives and expertise
across our global and
localnetworks
GOVERNANCE
Strong Board and
management
High standards of governance
DISCIPLINED APPROACH
TORISK
Risk mitigation to limit
exposure to any one market
oreconomy
Underpinned by
3
SHAREHOLDERS
PEOPLE
CLIENTS
COMMUNITY
High-quality service –
Clientrelationship
Client care – Client relationship
management team
Reduce environmental impact
–Carbon emission reduction
Community investment –
Community engagement
programmes
£39.5m
Reported
profit after
tax
22.8p
Dividends
30.0p
Reported
earnings
pershare
£94.8m
Underlying
profit
55.1p
Underlying
earnings
pershare
Develop talent
Employee engagement
Diversity and inclusion
Value-creation
4
Our business model
2
11
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
While the second half of 2023
saw the UK Central Bank base
rate stabilise, this did not feed
through into a notable pick-
up in commercial property
investment activity in the
UK. Furthermore, the impact
of high debt and operating
costs and wider economic and
political uncertainty slowed
down decision-making in most
occupational markets.
Just over £39bn of commercial property investments
were transacted in the UK in 2023, which is 41% lower
than the previous year and 38% down on the five-year
average. Every commercial property sector experienced
lower investment volumes in 2023 than 2022, with
the largest fall being in offices (47%) and the smallest
beingretail (12%).
Economic uncertainty continued to slow occupational
decision-making, and this caused a reduction in
take-up across all the main commercial property
sectors in most markets. One exception to this trend
was the City of London office market where take-
up was 12% higher in 2023 than 2022. However, at a
national level, office leasing activity outside London
was12% down year-on-year and large logistics
take-up was down 40%year-on-year.
Premier League HQ,
Brunel Building, Paddington,
London
The London office project management team,
part of building and project consultancy (‘BPC’),
has completed the fit-out of circa 40,000 sq ft.
at the Premier League’s new HQ in the Brunel
Building, Paddington, W2. Initially instructed on
33,000sqft. in 2019, following this success, the
team was appointed as project manager on a
further 7,000sqft. for the organisational body.
MARKET INSIGHTS
UK Commercial
12
Annual report and accounts 2023
UK Residential
2023 proved a more challenging year for the UK housing market, as
successive interest rate rises put pressure on prices and constrained
transaction levels. Across the market as a whole transactions levels fell
by -19% on the back of a -23% fall in mortgage approvals; with activity
becoming more weighted to cash and equity-rich buyers.
The prime housing markets were not immune to these
pressures with prices falling by an average of 1.1% in
London and 4.8% across the rest of the country, as post-
pandemic drivers of activity also dissipated.
A weaker housing market coincided with the ending
of the ‘help-to-buy’ scheme and significant planning
uncertainty, meaning housebuilders faced numerous
headwinds. That fed through into a softer development
land market. Correspondingly, values of greenfield
development land ended the year -8.7% below their
peakof September2022.
Though activity levels remained relatively buoyant, we
also saw a progressive slowing in rental growth at the
top end of the UK housing market. Rents rose by around
4.5%, as the acute demand-supply imbalance eased over
the course of 2023 and the Renter’s Reform Bill made
slow progress through parliament.
The Water House, Highgate
Guide price: £17m
Completed: December 2023
Property received multiple bids,
selling to a UK-based buyer.
The Water House is a dramatic contemporary house
sitting in glorious half-acre grounds and offering
countryside living in the heart of London. The property
is discreetly situated down a quiet heath side lane and
offers a level of privacy and seclusion rarely found
anywhere in London.
The family accommodation is imaginatively arranged
over two floors around the stunning double volume,
galleried family room and kitchen. Further exceptional
features include a long indoor pool-room, and a
detached studio annex in the rear garden.The house
is set on the plot to make the best of the south-west-
facing garden and pond. There is also ample secure
parking and a private pathway leading to Fitzroy Park.
13
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
MARKET INSIGHTS continued
North America
Entering 2024, the US is still
carefully navigating a Federal
Reserve-engineered ‘soft landing’
designed to temper inflation
without tipping the economy
intoa recession.
The US unemployment rate increased slightly over
the past year, from 3.4% at the start of 2023 to 3.7%
by December. Throughout 2023, employers added
2.7million jobs, a significant decrease from the
4.8million jobs gained in 2022, yet a larger increase than
in the years preceding the pandemic. The labour market
remains robust but is cooling to more sustainable levels,
with wage-growth generally moderating. Inflation, as
measured by the Consumer Price Index (‘CPI’), remains
above target at 3.1%, down from 6.5% the previous year.
The Federal Reserve has revised its forecast, anticipating
three rate cuts totalling 75 basis points (0.75%) in 2024.
The office market remains sluggish as economic
uncertainty and slowing employment growth cause a
reduction in overall demand. However, there is a bifurcation
in the office sector that partly exhibits signs of both
cautious recovery and resilience due to a high demand for
Class A space that is centrally located and well-amenitised
to “earn the commute” of employees. In contrast, older and
outdated office space continues to struggle, prompting
an increase in conversions to reposition these buildings
– a strategy that could eventually lower the availability
rate and ultimately bring the overall office market closer
to equilibrium. While sublease space has contributed to
the oversupply, the rate of new sublease offerings has
slowed, and supply has even begun to decline in some
markets. Currently, leasing activity is largely driven by lease
expirations, but an improving economy could prompt
tenants who have paused leasing decisions over the past
year to proceed with transactions.
In the US industrial market, tenants are gaining
leverageas normalised demand meets increased supply.
This rise in supply is leading to higher vacancy rates,
exerting some downward pressure on rental rates.
However, these rates are still significantly higher than
they were two years ago. Despite record amounts of
speculative development, higher interest rates have led
to a slowdown in construction, which will help mitigate
further increases in vacancies as supply tightens again.
The primary demand-driver, consumer spending, has
remained resilient despite challenges, with third-party
logistics providers and manufacturers continuing to be
very active. Investors are increasingly attracted to this
property type due to its solid long-term fundamentals
and relatively low levels ofdistress.
Chedraui, USA
Savills represented multi-national grocery retailer,
Chedraui USA, on its acquisition of a 1.4m sq ft.
industrial property in the Inland Empire outside Los
Angeles, where it will develop a state-of-the-art
distribution centre including a 500,000sq ft. cooler
and 25,000 sq ft. office facility for employees. The
transaction resulted in the largest industrial fee in
Savills North Americahistory.
14
Annual report and accounts 2023
Europe
2023 will be remembered for what was record eurozone inflation,
record eurozone interest rates and a year of elevated investor caution,
as European investment transactions recorded the lowest levels since
the aftermath of the eurozone debt crisis.
Drags on investment activity accumulated throughout
the year: the sluggish economic growth; the unavailability
of debt and its high cost; the mismatch between buyers
and sellers’ expectations and the narrowing spread
between long-term interest rates and real-estate
yields. Hence, investment activity kept slowing quarter
afterquarter.
Based on preliminary Q4 estimations, we anticipate that
European investment volumes totalled approximately
€140bn last year, slightly more than half the volume
transacted in 2022 and 56% down on the past five-year
average. This declining activity was widespread across all
European countries, with the exception of Greece, thanks
to one large portfolio deal. It was also widespread across
various asset classes, with the office sector continuing to
face the most significant downturn. Nevertheless, certain
sectors showed greater resilience than others, notably
senior housing, hotels and retail.
Investors’ attention is now focused on the timing of
the first interest-rate cut. Capital Economics predicts
a first 25-bps cut in Q2 2024, with rates to fall from
4.00% to 2.75% by the end of 2024. This will heighten
real estate’s investment appeal. As the gap in buyer and
seller price expectations begins to close, we expect a
gradual improvement in investment activity starting in
H2 2024. This revival of activity is anticipated to be most
pronounced in areas where prices experienced significant
corrections. ‘Beds and Sheds’ will retain their status as
preferred asset classes, benefitting from a persistent
structural imbalancebetween supply anddemand.
Barcelona World Trade Centre
Savills signed a five-year integral property
management agreement for World Trade Centre
Barcelona, which comprises 48,000 sq m. in three
buildings of mixed use (offices, 5*hotel, retail and
parking) in Barcelona Port.
15
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
MARKET INSIGHTS continued
Investment Management
Interest rates remained the single
biggest factor influencing real
estate investment in 2023.
Expectations in early 2023 that the second half of the
year could mark a turning point for real estate investment
markets proved wide of the mark as central banks raised
interest rates further and for longer than many expected.
As a result, real estate valuations remained under
significant pressure as yields moved out. At the same
time, the relative attraction of returns for alternative asset
classes, and in numerous instances, ongoing allocation
constraints towards real estate because of the so-called
‘denominator effect’, were significant headwinds for
capital-raising initiatives and transaction volumes.
The amount of capital raised for European real estate
Core, Core plus, value-add and opportunistic strategies
fell for the second consecutive year, with 2023 recording
the lowest level of capital raised since 2013, when the
region was starting to recover from the sovereign debt
crisis, Preqin data shows. Combined with high costs of
debt, the result was a halving of investment transactions
across Europe last year compared to 2022, and the worst
year for deals since 2012, MSCI data shows. Investment
activity in Asia-Pacific was also down sharply in 2023,
albeit the 20% year-on-year decline points to deal-
making holding up better than in Europe.
Notwithstanding a number of high profile cases, the
market didn’t see the levels of distressed sales that
some anticipated, given sharply higher debt financing
costs and the level of refinancing that was estimated
to be required in 2023. As interest rates start to come
down, lower borrowing costs will ease some refinancing
pressures. Nonetheless, credit conditions will likely remain
tight and higher loan-to-value ratios will challenge some
transactions, particularly assets that require significant
capital expenditure to improve the energy efficiency
andsustainability.
A retreat from traditional bank lenders continued to
openup opportunities for debt funds. With debt investors
more protected against declines in real-estate values, the
sector is rising in appeal amongst investors.
The interest rate environment looks set to dominate
the performance of the sector again in 2024. But while
investment-market conditions are likely to remain
challenging in the early part of 2024, with real-estate
values having already corrected significantly, lower
interest rates could start to open up new opportunities
for both equity and debt investors. But in a world
characterised by higher interest rates, investors will
need to think and act differently, focusing on sectors
where long-term demand-drivers and supply constraints
support rental growth and income.
Valencia
As part of its growing commitment to the
European Living sector, Savills IM acquired two
newly built residential properties in Valencia,
comprising 209 units. The assets were developed
in November 2022 as part of four residential
towers that make up “SkyHomes”, a highly
sustainable, modern residential asset located in
the Malilla neighbourhood of the city. In addition
to securing an EPC A rating, a great achievement
as Spain has one of the most restrictive EPC rating
systems for multi-family housing in Europe, other
sustainable characteristics include aerothermal
heat pumps in each unit. Electric vehicle chargers
soon to be installed along with bicycle racks in the
underground parking garage. The project aims to
achieve “BREEAM Excellent – In Use” certification.
The development also offers comprehensive
amenities, including a swimming pool, coworking
space and playgrounds.
16
Annual report and accounts 2023
Asia Pacific
Gwanghwamun Building,
South Korea
A partial sale (B1) of a mixed-use office and retail
property located in the core CBD across prominent
buildings including the Seoul Finance Center and
Four Seasons Hotel.
In the face of persistent interest-
rate hikes, China’s economic
slowdown and elevated global
economic uncertainties, investors
became more cautious and slowed
decision-making commitments
in 2023. Asia Pacific property
investment volumes fell by -33.2%
year-on-year in 2023 to US$126.4
billion* but still outperformed the
Americas (-55.5% year-on-year)
and CEME(-51.4% year-on-year).
China was the most active market in terms of
investmentvolume across the region in 2023, with
investment volumes contracting by 26.6% year-on-
year to US$33.8 billion, notwithstanding a debt crisis,
a property market downturn and an elevated risk
of deflation. Investment activity was supported by
recent fiscal measures, an increasing number of asset
disposals by developers, and a recent proliferation of
auction sales.Buyers were mainly domestic end-users
with insurance companies interested in good-quality
commercial stock in Tier 1 cities, while the participation
of foreign investors was limited.
Benefitting from an ultra-loose monetary policy and a
weak currency, Japan remained in the spotlight for global
investors in 2023 with a 20% year-on-year decline in
investment volumes to US$31.4 billion. Thanks to robust
inbound tourism, more investors were not only interested
in prime logistics warehouses, but also favoured retail
and hotel assets, which recorded increases in transaction
volumes of 34.2% and 16% YoYrespectively.
Other mature markets were affected by the higher cost
of borrowing, and investment volumes saw a decline
in 2023, particularly in Australia (-57.4% year-on-year)
and South Korea (-49.4% year-on-year). Singapore also
saw a decline of 6.6% year-on-year in 2023, in a market
supported by several large retail deals. Hong Kong was
one of two markets which recorded only a single digit
decline (-1.9% year-on-year), but volumes are still 70%
below their previous peak in 2018.
* Notes: Office, retail, industrial, apartment, hotel, and senior housing &
care transactions included. Entity level deals included. Development sites
excluded. Based on independent reports of properties and portfolios
$10 million and greater. Data believed to be accurate but not guaranteed.
Source: MSCI Real Capital Analytics, as of 10th January 2024.
17
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
KEY PERFORMANCE INDICATORS
Financial
The measure
The amount of cash the business has
generated from operating activities.
The target
To maintain strong cash
generation to fund working capital
requirements, Shareholder dividends
and strategic initiatives of the Group.
The measure
Underlying profit growth is the
increase/decrease in underlying
profit year-on-year.
The target
To deliver sustainable growth in
underlying profit.
Underlying profit margin
4.2%
Cash generation
£18.8m
Underlying earnings per share
55.1p
Underlying profit
£94.8m
Reported profit after tax
£39.5m
The measure
Revenue growth is the increase in
revenue year-on-year.
The target
To deliver growth in revenue from
expansion both geographically and
by business segment.
Revenue
£2,238.0m
£2,298.3m
£1,740.5m
£2,238.0m
£2,147.0m
2022
2020
2023
2021
The measure
Profitability after all operating costs
but before the impact of significant
non-operational costs and taxation.
The target
To deliver growth in operating
margin by improving the efficiency
with which services are offered.
The measure
Earnings per share (‘EPS’) is the
measure of profit generation.
Underlying EPS is calculated by
dividing underlying profit by the
weighted average number of
sharesin issue.
The target
To deliver progressive, sustainable
growth in underlying EPS to
enhance Shareholder value.
The measure
Reported profit after tax growth is
the increase/decrease in reported
profit after tax year-on-year and
over a longer term.
The target
To deliver sustainable long-term
growth in reported profit after tax.
7.2%
5.6%
4.2%
9.3%
2022
2020
2023
2021
94.9p
56.8p
55.1p
116.5p
2022
2020
2023
2021
£119.8m
£68.0m
£39.5m
£146.7m
2022
2020
2023
2021
£164.0m
£241.4m
£302.7m
2022
2020
2023
2021
£164.6m
£96.6m
£94.8m
£200.3m
2022
2020
2023
2021
£18.8m
18
Annual report and accounts 2023
The measure
Reported EPS is the measure of
reported profit generation and is
calculated by dividing reported
profit after tax by the weighted
average number of shares in issue.
The target
To deliver long-term growth
in reported EPS to enhance
Shareholder value.
Reported earnings per share
30.0p
87.0 p
49.0p
30.0p
104.9p
2022
2020
2023
2021
The measure
Geographical diversity is measured
by the spread of revenues by region.
The target
To progressively balance the
Group’s geographical exposure
through expansion in our chosen
geographic markets.
Non-Financial
Geographical spread
57.9%
(% non-UK)
The measure
Revenue by type of business.
The target
To maintain a healthy balance
of transactional and less or non-
transactional business revenues.
Balance
65.5%
(% non-transactional income)
59.5%
61.7%
65.5%
58.4%
2022
2020
2023
2021
The measure
Total square footage property
undermanagement.
The target
To progressively increase the global
square footage under management.
The measure
Growth in assets under
management of our investment
management business, Savills
Investment Management.
The target
To increase the value of investment
portfolios through portfolio
management, new mandates and
the launch of new funds.
Property under management
2,635.1m
(million sq ft.)
Assets under management
£22.1bn
2,472.1m
2,347.5m
2,635.1m
2,450.9m
2022
2020
2023
2021
£22.1bn
£19.0bn
£22.1bn
£21.9bn
2022
2020
2023
2021
58.4%
59.2%
57.9%
56.9%
2022
2020
2023
2021
19
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Our vision is to be the real
estateadvisor of choice in
the markets we serve. This
is underpinned, especially in
difficult market conditions, by
retaining our core bench-strength
to provide best-in-class insights
and advice to help individuals,
businesses and investors make
better property decisions.”
Mark Ridley
Group Chief
Executive
The key components of our business strategy to
support thisvision are as follows:
Business diversification
Geographical diversification
Commitment to clients to deliver the highest
standards ofclient service
Strength in all real estate sectors
Maintenance of our financial strength
Robust performance of the less transactional
businesses, representing 65% of Group revenue, which
grew 7%, underpinning overall Group performance
Savills Investment Management revenue decreased
6%. Assets under management was stable at £22.1bn
(2022: £22.1bn). $1bn commitment from Samsung
Life largely awaiting deployment
Global Transactional Advisory revenues, in
aggregate 35% of Group revenue, decreased 17%,
reflecting significantly reduced capital and leasing
market volumes globally
Global Residential revenues declined 19% as markets
normalised, following high levels of post pandemic
activity, and adapted to higher interest rates
KEY OPERATING HIGHLIGHTS
Chief Executive’s review
20
Annual report and accounts 2023
Our performance
Savills geographic and business diversity were key to achieving the year’s results. Our performance analysed by region
was as follows:
Revenue £m Underlying profit/(loss) £m
2023 2022 % change 2023 2022 % change
UK 941.5 956.3 (2) 98.3 118.1 (17)
Asia Pacific 659.0 669.7 (2) 23.4 41.4 (43)
CEME 342.4 335.0 2 (9.8) 17.3 n/a
North America 295.1 337.3 (13) (8.4) 4.1 n/a
Unallocated – – n/a (8.7) (16.3) n/a
Total 2,238.0 2,298.3 (3) 94.8 164.6 (42)
On a constant currency* basis Group revenue decreased by 2% to £2,252.4m, underlying profit decreased 42% to
£95.5m (and reported profit before tax decreased by 63% to £56.5m). Our Asia Pacific business represented 30% of
Group revenue (2022: 29%) and our overseas businesses as a whole represented 58% of Group revenue (2022: 58%).
Our performance by service line is set out below:
Revenue £m Underlying profit/(loss) £m
2023 2022** % change 2023 2022** % growth
Transaction Advisory 772.9 930.1 (17) 4.3 71.9 (94)
Property and Facilities Management 899.5 813.9 11 48.8 46.5 5
Consultancy 459.8 441.5 4 35.6 41.3 (14)
Investment Management 105.8 112.8 (6) 14.8 21.2 (30)
Unallocated – – n/a (8.7) (16.3) n/a
Total 2,238.0 2,298.3 (3) 94.8 164.6 (42)
* Constant currency is an alternative performance measure used to assess
theperformance of the Group. Revenue and underlying profit for the
year are translated at the prior year exchange rates to provide a constant
currency comparison. Refer to the appendices to the financial statements
forfurther explanation of this measure.
** Refer to Note 6 for details of change to the prior year comparatives for
Property and Facilities Management and Consultancy.
Overall, our Commercial and Residential Transaction
Advisory business revenue represented 35% of Group
revenue (2022: 40%) and was the service line most
directly affected by the challenging market conditions
during the year. Of this, Residential Transaction
Advisory represented 9% of Group revenue (2022: 10%).
Our Property and Facilities Management businesses
continued to perform well, growing year-on-year and
representing 40% of Group revenue (2022: 35%). Our
Consultancy businesses increased revenue by 4% and
represented 20% of revenue (2022: 19%), albeit that
the performance of some of the service lines, such as
security valuations, were affected by reduced market
volumes. Finally, Investment Management again
represented 5% of Group revenue (2022: 5%).
Unallocated costs reduced year-on-year as a result of
central interest income and the reduction in profit-related
remuneration payable to the Group’s senior management.
People
Over the past year Savills has continued to invest in the
business, employing the best people, diversifying by
geography and strengthening our offer in all major real
estate sectors.
The UK business retained both its number one spot in
the Top 100 Apprenticeship Employers of 2023-2024
(Rate My Apprenticeship Awards) for its second year and
its standing as The Times Property Graduate Employer
of Choice for the 17th consecutive year. It was also
named by the Financial Times as one of the UK’s leading
management consultants for the second year running.
In our CEME business, Savills Abu Dhabi and Sharjah won
two awards at the Property Finder Awards and Savills
Poland was honoured in the ESG Strategy category in
the Prime Property Prize 2023 awards.
In Asia Pacific, the Savills Hong Kong business won
the Property Management Team of the Year award
from RICS and the Savills Singapore business won the
Facilities Management Team of the Year award at the
RICS Southeast Asia Awards 2023.
These awards are a testament to the strength of our
people and their approach to client service and I thank
them for their continued commitment, loyalty and
hardwork.
21
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
-
17%
YOY change
The Savills Group advises on commercial, residential, rural
and leisure property. We also provide corporate finance
advice, investment management and a range of property-
related financial services. Operations are conducted
internationally through four business streams
Underlying profits fell to £4.3m (2022: £71.9m),
reflectingthe impact of sharply reduced volumes
transacted worldwide and the Group’s policy of retaining
core bench-strength during market corrections to
maintain client service and enable the Group to benefit
from future market recovery.
Asia Pacific Commercial
Revenue from the Asia Pacific Commercial Transactional
business decreased by 30% to £102.1m (2022: £145.3m),
a decrease of 27% in constant currency.
There were significant revenue reductions across the
region as markets began to recalibrate in the face of
interest rate rises and other challenges. In China, we
did not see the broad return of transaction volumes
which was anticipated after the end of COVID-related
lockdowns in Q1 2023. Instead, transactional revenues
declined by approximately 15% in China and 6% in Hong
Kong in comparison with a low base in 2022. However,
the recently recruited logistics teams performed well
and enabled the mainland Chinese transaction business
largely to mitigate the effect of the revenue fall on
profits. The other principal countries showing revenue
and profit reduction year-on-year were Australia, which
was one of the last markets to begin recalibration,
Singapore, South Korea and Japan, albeit the latter
cameoff a record performance in 2022 and continued
totrade profitably during 2023.
Overall the Asia Pacific Commercial Transactional
business recorded underlying losses of £2.9m (2022:
£13.4m underlying profit).
UK Commercial
UK Commercial Transactional revenue fell by 15% to
£100.6m (2022: £118.9m), reflecting fewer transactions
ininvestment markets and more subdued leasing activity.
Just over £39bn of commercial property investments
were traded in the UK in 2023, which is 41% lower
than the previous year and 38% down on the five-year
average. All commercial property sectors experienced
lower investment volumes in 2023 than 2022, with the
largest fall being in offices (-47%) and the smallest
beingin retail (-12%).
While the second half of 2023 saw the Bank of England
base rate stabilise, this did not quickly feed through into
a notable pick-up in commercial property investment
activity in the UK. Rather, Savills increased its share of
available market activity, for instance in prime Grade A
sustainable office transactions. Indeed, Savills advised on
11of the 16 largest transactions to occur in the year.
CHIEF EXECUTIVE’S REVIEW continued
£930.1m
£772.9m
2022
2023
Transaction
Advisory
Rest of Group
65%
£4.3m
Underlying profit
-
94%
YOY change
Transaction Advisory
£772.9m
Revenue
£71.9m
2022
2023
£4.3m
35%
Transaction Advisory
Overall, our Transaction Advisory revenue decreased by
17% (16% on constant currency basis) to £772.9m (2022:
£930.1m). Globally our commercial capital transaction
business revenue decreased by 30% and our leasing
and occupier-focused transactional revenues by 9%.
Our Global Residential business revenue reduced by
19%against a strong comparative in 2022.
Contribution to
Group revenue
(%)
22
Annual report and accounts 2023
Economic uncertainty continued to delay corporate
decision-making which resulted in a reduction in take-up
across all the main commercial property sectors in most
markets. One exception to this trend was the drive for
sustainability which saw take-up in the City of London
office market (Grade A with high sustainability rating)
increase by 12% year-on-year. However, at a national level,
office leasing activity outside London was 12% down
on2022 and large logistics take-up was down 40%
year-on-year.
As a result, despite market share gains, underlying profits
fell by 31% to £14.0m (2022: £20.4m) with a reduced
margin of 13.9% (2022:17.2%).
North America
Revenue from the North America Transactional business
decreased to £266.7m (2022: £303.5m), a 12% decrease
at both prevailing and constant currency rates.
The overwhelming majority of North American revenue
relates to occupier leasing transactions across the
office sector, which were considerably affected by
the understandable tendency for corporate occupiers
to delay transactions in the face of uncertain market
conditions. We saw growth in Southern California,
Washington DC, Chicago and in the US segment of the
recently launched Global Occupier Services business,
which more than doubled revenue, albeit off a low base.
These partially mitigated reductions in activity elsewhere.
In the major metropolitan markets such as New York and
San Francisco where the continuation of homeworking
in the face of return-to-work strategies, in the financial
services and technology sectors particularly, restricted
demand for offices for much of the year. There were
signs of improved activity emerging in Q4 2023, which
should support improved performance in 2024. Capital
markets revenues reduced by 48% to £12.4m (2022:
£23.7m) as investors came to terms with both reduced
occupier demand for metropolitan office space and the
rising cost of debt.
Profits were significantly impacted by the effect of
market conditions on revenue. During the year a
focused restructuring exercise was carried out to
improve profitability in the future, as well as continuing
investment in growth of the newly established Occupier
Services platform. The business recognised an overall
underlying loss of £7.4m (2022: £2.3m underlying profit).
Continental Europe and the Middle East
In CEME, transaction fee income decreased by 12% to
£114.6m (2022: £129.8m); 10% in constant currency.
The primary market-related themes were similar to those
experienced elsewhere, however the extent of their
impact alongside other more local issues, particularly in
Germany, continental Europe’s largest real estate market,
was significant to the extent that our transactional
business there made a material loss. Germany is one of
the slowest global markets to recalibrate and market
conditions in France were not dissimilar.
In contrast, our businesses in the Middle East, Italy,
Czech Republic and Portugal saw transactional revenue
growth as a consequence of both organic investment
and recent acquisition activity. Spain and Ireland
showed considerable resilience in their transactional
performances too, maintaining strong market share.
Wecontinued to grow market share in many countries
but could not mitigate the effect of volume reductions
inmost markets.
Profitability was impacted primarily by the significant
downturn in activity causing losses in both the major
markets of France and Germany and also in the
Netherlands and Belgium. This together with increased
interest costs on CEME net borrowings resulted in an
underlying loss for the year of £20.3m (2022: £2.7m
underlying loss).
UK Residential
UK Residential Transactional revenue decreased
by 18%to £171.0m (2022: £208.3m), reflecting the
decrease in market volumes with successive interest
rate rises andthe consequent fall in mortgage approvals
dampening demand.
Second hand sales revenue declined by 23% with a
reduction in the number of exchanges of 23% to 4,735
(2022: 6,124). This was exacerbated by a decrease in the
average sales value by 4% to £1.61m (2022: £1.68m). In
London the average lot size transacted by Savills was
down 3% to £2.23m and by 8% to £1.27m in the regions.
Volumes in both the regional UK market and central
London declined significantly, but consistent with our
expectations.
Revenue from the sale of new homes reduced 24%
year-on-year, reflecting a decrease of 27% in the number
of exchanges, much of which occurred in the regional
markets with London more resilient, which was also
manifested by an 8% increase in average value transacted.
Underlying profit reduced by 45% to £19.4m (2022:
£35.1m), reflecting the effect of the revenue reduction
year-on-year. This performance represented an
underlying profit margin of 11.4% (2022: 16.9%).
Asia Pacific Residential
Revenue from the Asia Pacific Residential Transaction
business decreased by 26% to £17.9m (2022: £24.3m),
afall of 24% in constant currency.
86% of the regional revenue was generated in Greater
China, where debt costs drove falls in revenue of between
22% and 25% in mainland China and Hong Kong, although
profits from those regions only fell by £0.7m in aggregate.
Elsewhere revenues reduced by between 20% and 50%,
the latter in Singapore where market conditions, including
the impact of stamp duty for non-residents, were also
reflected in a temporarily reduced share of profit from our
associate, Huttons. The effect of these reductions were
partially mitigated by small increases in profitability in
our businesses in Thailand and Vietnam, however overall
underlying profits fell to £1.5m (2022: £3.4m).
23
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
CHIEF EXECUTIVE’S REVIEW continued
Property and Facilities Management
Our Property and Facilities Management businesses
continued to perform well, with revenues growing by 11%
to £899.5m (2022: £813.9m); 11% in constant currency.
Savills total area under management increased by 7%
to 2.63bn sq ft (2022: 2.47bn sq ft). Underlying profit
increased by 5% to £48.8m (2022: £46.5m), 6% in
constant currency.
Asia Pacific
In Asia Pacific, Property Management revenue was
£447.1m, an increase of 10% year-on-year (2022:
£404.9m); 12% increase in constant currency.
Revenue grew across the region with improved
performances in Singapore, South Korea and Vietnam.
Hong Kong experienced revenue growth of 1% overall,
however much of this was in lower margin Facilities
Management, which did not mitigate the effect of
a reduced contribution from a long-standing joint
venture in Macau as the leisure industry there saw much
reduced throughput-related demand. In mainland China,
revenue growth of 2% was offset by growth in staff
costs, including temporary staff filling vacancies caused
in part by migration. Meanwhile in Singapore, revenue
and profitability were significantly enhanced through a
much improved performance by Absolute Maintenance
Services Pte Limited and Solute Pte Limited (‘AMS’),
bothacquired the previous year.
The Asia Pacific region’s underlying profits increased by
6% year-on-year to £22.2m (2022: £21.0m) reflecting a
slightly reduced margin of 5.0% (2022: 5.2%).
UK
The UK Property Management business grew revenues
by 9% to £355.7m (2022: £327.4m) with square footage
under management increasing by 4% (31 December
2023: 600.1m sq ft, 31 December 2022: 577.0m sq ft).
During the year we continued to diversify our Facilities
Management business into new service lines, such as
car park consultancy, as well as securing significant
newmandates.
Our Residential Lettings business had another successful
year with revenues and profit increasing by 6%. This
was primarily driven by the London market which was
characterised by strong tenant demand, albeit with
reducedsupply.
Finally, our rural management business also performed
well with revenue growth of 5% and significant profit
improvement.
Overall, the UK Property Management business increased
underlying profit by 17% to £30.4m (2022: £25.9m).
Continental Europe and the Middle East
CEME Property Management revenues increased by
19% to £96.7m (2022: £81.6m); the same on a constant
currency basis. Over half of this increase was in respect
of pass-through costs for outsourced services in
Germany, which had no effect on profits.
Revenues grew in all regions, reflecting significant contract
wins in the Middle East, Spain, Ireland and Poland.
Area under management at 31 December 2023 was
294.8m sq ft., up 11% on last year (31 December 2022:
265.4m sq ft.).
Profitability and margins in the CEME businesses were
significantly affected by initial scale up costs on new
contract wins, inflationary cost pressures, reduced levels
of profitable ad hoc consultancy work in the prevailing
economic environment and a higher interest cost on
debt balances associated with recent acquisitions. As
a result, the CEME business recognised an underlying
lossof £3.8m (2022: £0.4m loss).
+
11%
YOY change
Property and Facilities Management
£813.9m
£899.5m
2022
2023
Property
and Facilities
Management
Rest of Group
£48.8m
Underlying profit
£899.5m
Revenue
£46.5m
£48.8m
2022
2023
+
5%
YOY change
60%
40%
Contribution to
Group revenue
(%)
24
Annual report and accounts 2023
+
4%
YOY change
Consultancy
£441.5m
£459.8m
2022
2023
Consultancy
Rest of Group
£35.6m
Underlying profit
£459.8m
Revenue
£41.3m
£35.6m
2022
2023
-
14%
YOY change
Consultancy
Global Consultancy revenue increased by 4% to £459.8m
(2022: £441.5m), 5% at constant currency rates. Much of
the revenue growth derived from lower margin service
lines, whilst some of the higher margin services were
materially affected by either reduced market volumes (e.g.
security valuations) or the impact of market sentiment
on client willingness to commit to longer-term projects
(e.g. Development Consultancy/Planning). In addition, the
cost base was affected by salary inflation in respect of
professional consultants. These factors were most marked
during the first half of the year. Thereafter, we experienced
improved activity particularly in Q4, improving on our H1
2023 underlying profit decline of 55% to end the year with
underlying profit decreasing by only 14% to £35.6m (2022:
£41.3m); 13% on a constant currency basis.
UK
The UK Consultancy businesses, comprising a broad
range of advisory activities, increased revenue by 9%
to£271.0m (2022: £248.4m).
Revenue growth came from most main service lines
with the exception of Development Consultancy, as
developers delayed projects in the prevailing economic
climate. Project Management Consultancy continued
to grow well with increasing numbers of Green “retro-
fit” assignments. Housing Consultancy also performed
well and, whilst Planning Consultancy revenue grew
somewhat, it was largely derived from smaller project
work, rather than master planning and major schemes,
with aconsequent reduction in profitability.
The above factors in addition to professional staff cost
increases, resulted in underlying profit increasing by 6%
to £29.7m (2022: £28.0m).
Asia Pacific
In the Asia Pacific Consultancy segment, revenues
decreased by 4% to £84.1m (2022: £87.4m); 1% on a
constant currency basis. The overwhelming majority of
revenues are earned in Australia, mainland China and Hong
Kong. All of these were affected by reductions in valuation,
development and research consultancy which linked to the
impact of reduced transaction volumes on sentiment and
in particular in China, the effect of economic conditions
and debt on development activity.
Project management and green fit-out assignments
in particular, improved performance in Singapore and
selective markets in South East Asia.
The above factors resulted in underlying profit decreasing
by 34% to £1.9m (2022: £2.9m), 31% in constant currency.
Continental Europe and the Middle East
Revenue increased by 6% (as reported and in constant
currency) to £76.3m (2022: £71.9m).
Revenue growth was driven primarily by the Middle East,
Portugal and Italy. Reduced revenue in Germany and
Netherlands reflected substantially reduced valuation
business as a result of reduced transactional activity in
those markets. The cost base was further impacted by
investment in new residential and workplace strategy
recruitment in Germany and France respectively and
increased interest costs on prior acquisitions.
Underlying profit fell by 42% to £5.0m (2022: £8.6m);
41% in constant currency.
North America
This segment primarily comprises complex project
management through Macro Consultants LLC (‘Macro’),
a national project management consultancy business
and T3 Advisors, a workplace solutions advisory firm
specialising in the life sciences and technology sectors.
Revenue decreased by 16% to £28.4m (2022: £33.8m),
as reported and in constant currency. This was primarily
as a result of two factors. First, in Project Management,
a major media business client put on indefinite hold a
number of significant projects for the year, for which
staff had already been allocated. Secondly, the T3
business was affected by retrenchment in the technology
sector. Both businesses significantly refocused to replace
their work in progress pipelines but suffered losses
during the year, which could only be partially mitigated
by improvements in other consultancy services such as
workplace and incentives consultancy.
The impact of these factors resulted in an underlying
lossof £1.0m (2022: £1.8m underlying profit).
80%
20%
Contribution to
Group revenue
(%)
25
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
-
6%
YOY change
Investment Management
£112.8m
£105.8m
2022
2023
Investment
Management
Rest of Group
£14.8m
Underlying profit
£105.8m
Revenue
£21.2m
£14.8m
2022
2023
-
30%
YOY change
Investment Management
Despite the prolonged challenging macro environment,
Savills Investment Management delivered a resilient
result with revenue down 6% to £105.8m (2022: £112.8m),
7% down on a constant currency basis.
The decrease was primarily due to a 35% reduction
in transaction fees in line with the reduced activity in
the overall market. Base management fees declined
marginally to £84.0m (2022: £85.7m) and represented
79% of gross revenues (2022: 76%). The decline was
consistent with expectations as several existing products
came to their natural end-of-life whilst new strategies
were initiated during the year and will take time to
buildscale.
AUM, including undrawn commitments, remained stable
at £22.1bn (2022: £22.1bn). Successful new product
launches and new mandates, as well as improved capital
raising of £2.0bn (2022: £1.6bn) despite the difficult
market conditions were offset by disposal activity and
valuation reductions during the period. The relationship
with Samsung Life continued well, with Samsung having
committed its contracted $1bn to various products, much
of which is yet to be deployed and is included in the
approximately £1.7bn of investable funds carried over to
2024. At the most recent measurement date prior to this
report, 79% of funds (by AUM) continued to exceed their
respective fund target or benchmark returns on a five-
year rolling basis.
Successes during the year include significant new
mandates won in Spain and Italy and growth of the
Living platform in the UK and continental Europe. DRC
Savills Investment Management expanded into new
territories, launching the DRC SIM Australia Real Estate
Debt Fund and establishing its first position in the US
real estate debt market through a joint venture with QCP
LLC, an Atlanta based real estate debt manager.
Underlying profits for Investment Management
decreased by 30% to £14.8m (2022: £21.2m), 31% on a
constant currency basis. In addition to the fall in revenue
noted above, the year was also impacted by salary
inflation in the sector and the cost of further platform
growth for new product strategies, in advance of
material revenues as capital is deployed.
Mark Ridley
Group Chief Executive
CHIEF EXECUTIVE’S REVIEW continued
95%
Contribution to
Group revenue
(%)
5%
26
Annual report and accounts 2023
Simon
Shaw
Group Chief
Financial
Officer
Profit margin
Underlying profit margin decreased to 4.2% (2022:
7.2%), see Note 2.3 and Note 8 for further explanation of
underlying profit measures. From a trading perspective,
this reflected the mix of business in the face of significant
market-related revenue decreases substantially reducing
profits in higher margin Transactional and Investment
Management businesses, with revenue falling 17% and
6% respectively. It also reflected Group policy to retain
core bench-strength through market downturns in
order to maintain client service and benefit from market
recoveryin due course.
Reported pre-tax profit margin decreased to 2.5%
(2022:6.7%).
Taxation
The tax charge for the year decreased to £15.9m
(2022:£34.1m), representing an effective tax rate on
reported profit before tax of 28.7% (2022: 22.2%). The
Group’s effective reported tax rate is higher than the UK
effective rate of tax of 23.5% as a result of disallowable
expenses largely arising from transaction-related costs.
The underlying effective tax rate increased to 22.3%
(2022: 20.5%).
The Group’s strength across our less
transactional service lines continued
to provide a resilient earnings stream
and maintain our strong financial
position. Our full-year performance
for 2023 was in line with our
expectations, given the significant
challenges faced by global real
estate markets in theyear.”
Chief Financial Officer’s review
27
STRATEGIC REPORT FINANCIAL STATEMENTSGOVERNANCEOVERVIEW
CHIEF FINANCIAL OFFICER’S REVIEW continued
Transaction-related costs
During the year the Group recognised a total of £14.6m
in transaction-related costs (2022: £15.5m). These costs
primarily represent liabilities for future consideration
payments which are contingent on the continuity of
recipients’ employment at the time of payment (2023:
£12.7m, 2022: £14.8m). The largest individual component
of this charge related to the acquisition during 2021 of
the 75% partnership interests in DRC Capital LLP, which
the Group did not already then own.
These charges have been excluded from the calculation
of underlying profit on a consistent basis in line with the
Group’s policy.
Restructuring costs
In response to the challenging market conditions, during
the year, management conducted a focussed review of
the Group’s businesses, where market recovery was not
anticipated to be significant in the short or medium term.
As described in the CEO’s review, this resulted in non-
recurring restructuring costs of £13.9m in aggregate.
Accordingly, these charges have been excluded from the
calculation of underlying profit on a consistent basis in
line with the Group’s policy.
Earnings per share
Basic earnings per share decreased 66% to 30.0p
(2022:87.0p), reflecting a 67% decrease in reported
profit after tax. Adjusted on a consistent basis for
significant restructuring, transaction-related costs, profits
and losses on disposals, certain share-based payment
adjustments, amortisation of intangible assets arising
from business combinations, impairments of goodwill
and significant transaction-related fair value gains,
underlying basic earnings per share decreased 42%
to55.1p (2022:94.9p).
Fully diluted earnings per share decreased by 65% to
28.8p (2022: 82.2p). The underlying fully diluted earnings
per share decreased 41% to 52.9p (2022: 89.8p).
Cash resources, borrowings and liquidity
Cash and cash equivalents, net of overdrafts in notional
pooling arrangements, at year end decreased 33% to
£314.5m (2022: £467.1m). This decrease reflected the
Group’s reduced profitability in the year and the related
increase in net working capital.
Gross borrowings at year end decreased to £157.2m
(2022: £159.7m). These principally comprise £150.0m
(2022: £150.0m) of 7, 10 and 12 year fixed rate notes
which were issued in June 2018. The Group’s £360.0m
UK revolving credit facility (‘RCF’) was undrawn at
the end of the year (2022: undrawn), part of a total
of £422.0m (2022: £426.2m) of undrawn borrowing
facilities available to the Group. At the year end, cash
andcash equivalents net of borrowings was £157.3m
(2022: £307.4m).
Cash is typically retained in a number of the Group’s
subsidiaries in order to meet the requirements of
commercial contracts or capital adequacy. In addition,
cash in certain territories is retained to meet future
growth requirements.
The Group’s net inflow of cash is typically greater in the
second half of the year. This is as a result of seasonality
in trading and the major cash outflows associated with
dividends, profit related remuneration payments and
related payroll taxes in the first half. The Group cash
inflow for the year from operating activities was £18.8m
(2022: £164.0m). As previously mentioned, this reduction
was due to reduced profits year-on-year and the related
short-term increase in net working capital.
With a significant proportion of the Group’s revenue
typically being transactional in nature, the Board’s
strategy is to maintain low levels of gearing, but retain
sufficient credit facilities to enable it to meet cash
requirements during the year and finance the majority
ofbusiness development opportunities as they arise.
Capital and Shareholders’ interests
During the year 4,322 (2022: 68,739) new ordinary
shares were issued on the exercise of options by
participants of the Group’s SAYE schemes and 32,549
(2022: 81,098) of new ordinary shares were issued to
participants of the Group’s PSP schemes. The total
number of ordinary shares in issue (before the impact
of shares held by the Savills plc 1992 Employee Benefit
Trust and the Savills Rabbi Trust) at 31 December 2023
was 144,389,919 (2022: 144,353,048).
Savills Pension Scheme
The funding level of the defined benefit Savills Pension
Scheme in the UK, which is closed to future service-
based accrual, worsened during the year, with lower
asset returns reducing the value of the Scheme’s
assets and a rise in the yield on AA-rated corporate
bonds increasing the Scheme’s liabilities. The plan was
in a deficit position of £0.7m at the year-end (2022:
£22.3msurplus).
Net assets
Net assets as at 31 December 2023 were £752.8m (2022:
£805.3m). This movement reflects primarily the Group’s
profit for the year offset by currency translation losses,
reflecting the strengthening of sterling during the year,
purchases of treasury shares, dividend payments and
actuarial losses recognised on the Group’s defined
benefit pension schemes.
28
Annual report and accounts 2023
Key performance indicators (‘KPIs’)
The Group uses a number of KPIs to measure its
performance and review the impact of management
strategies. These KPIs are detailed under the Key
Performance Indicators section on pages 18 and 19. The
Group continues to review the mix of KPIs to ensure that
these best measure its performance against its strategic
objectives, in both financial and non-financialareas.
Financial policies and risk management
The Group has financial risk management policies
whichcover financial risks considered material to the
Group’s operations and results. These policies are subject
to continuous review in light of developing regulation,
accounting standards and practice. Compliance with
these policies is mandatory for all Group companies and
is reviewed regularly by the Board. Refer to Note 3 to the
financial statements for further information on financial
risk management.
Treasury policies andobjectives
The Group Treasury policy is designed to reduce the
financial risks faced by the Group, which primarily relate
to funding and liquidity, interest rate exposure and
currency rate exposures. The Group does not engage in
trades of a speculative nature and only uses derivative
financial instruments to hedge certain risk exposures.
TheGroup’s financial instruments comprise borrowings,
cash and liquid resources and various other items such
as trade receivables and trade payables that arise
directly from its operations. Surplus cash balances are
generally held with A rated banks or better.
Interest rate risk
The Group finances its operations through a mixture
of retained profits and borrowings, at both fixed and
floating interest rates. Borrowings issued at variable rates
expose the Group cash flow to interest rate risk, which is
partially offset by cash held at variable rates. Borrowings
issued at fixed rates expose the Group to fair value
interest rate risk. Group policy is to maintain at least 70%
ofits borrowings in fixed rate instruments.
Liquidity risk
The Group prepares an annual funding plan which
is approved by the Board and sets out the Group’s
expected financing requirements for the next 12 months.
These requirements are ordinarily expected to be met
through existing cash balances, loan facilities and
expected cash flows for the year.
55.1p
Underlying
earnings
per share
(2022: 94.9p)
£157. 3m
Cash and cash
equivalents,
net of borrowings
(2022: £307.4m)
30.0p
Reported
earnings
pershare
(2022: 87.0p)
Foreign currency
The Group operates internationally and is exposed to
foreign exchange risks. As both revenue and costs in
each location are generally denominated in the same
currency, transaction-related risks are relatively low
and generally associated with intra Group activities.
Consequently, the overriding foreign currency risk relates
to the translation of overseas profits and losses into
sterling on consolidation. The Group does not actively
seek to hedge risks arising from foreign currency
translations due to their non-cash nature.
The net impact of foreign exchange rate movements
during the year represented a £14.4m decrease in
revenue and a £0.7m decrease in underlying profit.
Refer to Note 3.2 to the financial statements and the
appendices for further information on foreign exchange
risk and movements during the year.
Simon Shaw
Group Chief Financial Officer
29
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
A robust framework for
identifying and managing risk
Identifying and managing our risks
The Board determines the Group’s appetite for risk in
pursuit of strategic objectives, and the level of risk that
can be taken by the Group and its operating companies.
Savills businesses worldwide are responsible for executing
their activities in accordance with the risk appetite set
by the Board, complemented by the Savills Code of
Conduct, Group policies and delegated authoritylimits.
Risk is assessed across the Group using a systematic
risk-management model covering both external and
internal factors and the potential impact, timing
of impact, and likelihood of those risks occurring.
Conclusions from risk assessments are incorporated into
Risk Registers at Principal Business and Group-level,
which evolve to reflect changes in identified principal
risks and the emergence of new risks and uncertainties.
Where it is considered that a risk can be mitigated
further, responsibilities are assigned and action plans are
agreed. Principal risks are those to which the Board and
senior management pay particular attention and which
could cause the delivery of the Group’s strategy, results,
financial condition or prospects to differ materially
from expectations. Emerging risks are those which
have unknown components, the impact of which could
crystallise over a longer period of time.
We aim to continuously strengthen our risk management,
with more dynamic risk detection, visibility of the linkage
between risks across the Group.
The Group Director of Risk & Assurance facilitates the
risk assessment and evaluation process with Group and
Principal/business unit management, and challenges risk
findings and the internal control framework to ensure
that these are effective. Risk owners periodically attend
the Group Risk and Audit Committees to present their
in-depth analysis of risks to ensure they are aligned with
an accepted risk tolerance.
Group policies and delegated authority levels set by the
Board provide the basis against which potential risks are
reviewed and escalated to the appropriate level within
the Group, up to and including the Board, for review
andconfirmation.
We have a clear framework for identifying and managing
risk, both at a financial, operational and strategic level.
Our risk identification and mitigation processes have
been designed to be appropriate to the ever-changing
environments in which we operate.
The Board is responsible for
the Group’s system of risk
management and internal control.
Risk management is recognised
as an integral part ofthe
Group’sactivities.”
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS
30
Annual report and accounts 2023
Plc Board
Audit Committee
Group Executive Board
Group Risk Committee
and Group ESG Committee
Principal Business Executive Committees
Heads of Group
functions
Key risks:
Heads of Group
functions identify the
key risks and develop
mitigation actions
Heads of operating
companies
Key risks:
Heads of operating
companies create
a register of their
principalrisks and
mitigation actions
The Savills Investment Management business has its own
comprehensive and regulatory-compliant framework for identifying
and managing risk, reporting to the Group’s Risk and Audit
Committees and Board.
Review and confirmation
Review and confirmation by the Board.
Process
Risks and mitigation reviewed by Audit
Committee after validation by the Group Risk
Committee and Executive Boards/Committees.
Ongoing review and control
There is ongoing review of the risks and the
controls in place to mitigate these risks.
Review and assessment
Group Director of Risk and Assurance
consolidates the risks identified by the Principal
Businesses, functional and Group risks to
compile the Group’s key risks. Any significant
programme/project risks are also considered
andfactored into the Group Principal Risks.
Roles and responsibilities
The Board continuously reviews the Group’s principal
risks and is supported in the discharge of this
responsibility by various committees, and in particular
the Audit Committee, the Group Risk Committee and
theGroup Executive Board.
The risk management roles and responsibilities of the
Board, its Committees, and business management are
set out below, and all of these responsibilities have been
discharged during the year.
1. Board
Responsibilities
Approves the Group’s strategy
Determines Group risk appetite in the context of the
Group achieving its strategic objectives
Establishes and monitors the Group’s systems of risk
management and internal control.
The Audit Committee supports the Board by monitoring
risk and reviewing the effectiveness of internal controls,
including systems to identify, assess, manage and
monitor risks.
Actions
Receives regular reports on Internal and External
Audit and other assurance activities
Receives regular risk updates from the
PrincipalBusinesses
Determines the nature and extent of the principal
Group risks and assesses the effectiveness of
mitigating actions
Annually reviews the effectiveness of risk
management and internal control systems
Approves the Group risk management policy.
Group Risk
31
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS continued
2. Group Executive Board
Responsibilities
Strategic leadership of the Group’s operations
Ensures that the Group’s risk management and other
policies are implemented and embedded
Monitors that appropriate actions are taken to
manage material strategic risks and key risks arising
within the risk appetite set by the Board
Considers emerging risks in the context of the
Group’s strategic objectives and the global macro-
economic and socio-political environment
Approves Group policies
Monthly/quarterly finance and performance reviews
Receives updates from Group Risk Committee
Monitors the application of risk appetite and the
effectiveness of risk management processes. The
Group Risk Committee and Board also consider the
Group’s overall risk appetite in the context of the
negative impact that the Group can sustain before
the Group’s business model, future performance,
solvency or liquidity are threatened.
Actions
Review of risk management and assurance activities
and processes.
The Directors have carried out a robust assessment
of the principal risks facing the Company –
including those that would threaten its business
model, future performance, solvency, liquidity
and/or pose a material reputational risk. Our
consideration of these key risks and uncertainties
relating to the Group’s operations, along with
their potential impact and the mitigations in
place, is set out on pages 30 to 36. There may
be risks and uncertainties other than those listed
which may also adversely affect the Group and its
performance. More detail can be found in the Audit
Committee Report on pages 118 to 126.
We also conduct a formal exercise twice yearly to
identify and assess emerging risks. While assessing
potential emerging risks we have considered our
risk exposure across a number of themes, e.g.
finance and economics, geopolitical and security,
social, technological, climate and sustainability.
Emerging risk and horizon scanning are integrated
as part of regular risk discussions and reported at
both regional and Group level.
PRINCIPAL AND EMERGING RISKS
3. Principal Business Executive Committees
Responsibilities
Responsible for risk management and internal control
systems within the relevant regions/businesses
Monitor the discharge of responsibilities by business
units within the relevant regions/businesses.
Actions
Review key risks and mitigation plans
Review results of assurance activities
Escalate key risks to Group Management and Group
Executive Board and the Plc Board.
4. Heads of the Group functions and
operating companies
Responsibilities
Maintain an effective system of risk management and
internal control within their function/business unit.
Actions
Regularly review operational, project, functional and
strategic risks as well as emerging risks
Review mitigating controls, whether financial,
operational or compliance and mitigation plans to
address control gaps
Plan, execute and report on assurance activities as
required by Regional or Group Management.
The Group’s overall risk management framework is
further enhanced by the contributions of specialist
groups, for example, the Group Information Security
Committee. As appropriate, certain businesses also
havetheir own risk committees.
Savills continuously reviews and enhances its
risk management process and seeks advice from
independent advisors where applicable.
32
Annual report and accounts 2023
In summary, the Group’s principal existing and emerging risks (not in order of priority) are:
Risk Description Mitigations
Change
from 2022
1
MARKET CONDITIONS, MACRO-ECONOMIC AND GEOPOLITICAL ISSUES
Strategic
objective:
Geographic
diversification/
Financial
strength
Global markets have seen increased volatility,
with geopolitical and macro-economic risk,
particularly in relation to inflation and resultant
interest rate increases, with the consequent
impact of increased interest rates on real estate
values, resulting in uncertainty in many sectors.
This macro-economic uncertainty could
lead to a material contraction in real estate
transactionalactivity.
Political change could bring changes in
policy focus and economic outlook with
a consequential impact on real estate
transactionmarkets.
Inflation and consequential increases in interest
rates have impacted market sentiment and
investor confidence, with the speed at which
individual investment/transactional markets will
recalibrate to the current/anticipated cost of
debt uncertain.
Group earnings and our financial condition
could be adversely affected by these and other
macro-economic uncertainties. Savills operates
in a number of countries where transactional
business is the largest component, increasing
the level of risk in relation to earnings.
There is a currency risk from operating in a
largenumber of countries.
As this is in an externally driven risk, the risk
landscape is fluctuating with wider economic
interventions and geopolitical challenges.
Savills has a relatively resilient business model with a
strong brand and focus on excellence in client service.
Our strategy of diversifying our service offering
and geographic spread mitigates the impact on
the Group of macro-economic downturns and
weak transactional market conditions in specific
geographies, but this strategy cannot entirely
mitigate the overall risk to earnings. To manage
these risks further, we maintain a continuous
focus on our cost-base and seek to improve
operationalefficiencies.
Contingency plans are in place to enable us to
respond quickly to market information, economic
trends and adverse events.
Continual monitoring of market conditions, market
changes and other events, against our Group
strategy, supported by the reforecasting and
reporting in all of our businesses, are key to our
ability to respond on a timely basis to changes in
our operatingenvironment.
Our exposure to countries with economies which
are currently weak is balanced by our business in
stronger markets. When considering new market
entry we undertake due diligence including the
impact assessment of political and economic
issuesin that particular country.
We manage currency risk in local operations
through natural hedging and matching revenue
andcosts in the same currency.
2
ACHIEVING THE RIGHT MARKET POSITIONING IN RESPONSE TO THE NEEDS OF OUR CLIENTS
Strategic
objective:
Business
diversification/
Strength in
Residential and
Commercial
markets/
Geographical
diversification/
Commitment
toclients
The markets in which we operate are highly
competitive. Competition could lead to a
reduction in market share resulting in a decline
in revenue. Failure to respond to changing
service requirements from clients, to innovate
or execute on transformational activities could
impact profitability and market share. Our
focus is on retaining existing clients as well as
engaging with new clients. Our service offering
continuously evolves and improves to meet
the changing needs of our clients and this
will continue as changes to our clients’ real
estate requirements change, as a result of, for
example,climate change.
To remain competitive in all markets and deliver
return to investors, we continue to promote
and differentiate our strengths while focusing
on providing the quality of service that our
clientsrequire.
We continue to invest in the development of client
relationships, our businesses and people and
associated systems/digital technology to support,
enhance and extend our client serviceoffering.
1
Market conditions, macro-economic and
geopoliticalissues.
7
Operational resilience/business continuity.
2
Achieving the right market positioning to
meettheneeds of our clients.
8
Business conduct.
3
Recruitment and retention of
high-calibre employees.
9
Changes in the regulatory environment/
regulatory breaches.
4
Reputational and brand risk.
10
Acquisition/integration risk.
5
Legal risk.
11
Environment and sustainability.
6
Failure or significant interruption to IT systems
causing disruption to client service.
Change from 2022:
Up
Down
Unchanged
33
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Risk Description Mitigations
Change
from 2022
3
RECRUITMENT AND RETENTION OF HIGH-CALIBRE STAFF
Strategic
objective:
Financial
strength/
Commitment
toclients
We recognise that the future success of our
business is dependent on attracting, developing,
motivating and retaining peopleof the
highestquality.
We continue to invest in the development of
our people and our learning and development
programmes across the business. Reflecting the
change to working patterns, Savills has maintained
its flexible approach to office working while
ensuring that client service remains at the highest
level. We focus on fostering a diverse and inclusive
culture across all our businesses which allows all
our people to bring their true whole selves to work
and be best they can be.
Our partnership-style culture and profit-sharing
approach to remuneration are combined with
selective use of share-based and other rewards to
incentivise and retain our best people for the long-
term benefit of the Group. We continuously review
our markets to ensure that reward packages
remaincompetitive.
We aim to develop talent and promote from
within. Our Diversity and Inclusion strategy, health
and wellbeing programmes and encouragement
of charitable activities and participation in the
communities in which our businesses operate, all
combine to ensure that our businesses have an
inclusive culture, provide our employees with the
ability to be the best they can be and maintain their
‘employer of choice’status.
4
REPUTATIONAL AND BRAND RISK
Strategic
objective:
Strength in
Residential and
Commercial
markets/
Commitment
toclients
Savills is a strong, well-recognised and valued
brand with an excellent reputation in the
markets in which it operates. The Group’s
reputation could be damaged due to an action
or event that results in negative media/social
media coverage.
We recognise the need to maintain this
reputation by ensuring the quality of the
service we provide and as described below,
requiring our people to operate to the highest
ethicalstandards.
We recognise that our brand strength is vital to
maintaining market share in established and new
markets. A brand management programme is in
place to ensure the brand’s positioning and identity
is clearly and consistently promoted.
Our social media policy is supported by
guidance and training as well as ongoing
monitoring. All external statements have to be
appropriatelyapproved.
We recognise that the quality of the service we
offer is vital to maintaining the brand. We have in
place policies, controls and processes to monitor
the quality of our client service to support our
programme of continuous improvement.
The Group has well established Environmental,
Social and Governance (‘ESG’) programmes as
set out in Responsible Business on pages 38 to 73
tosupport our brand values.
5
LEGAL RISK
Strategic
objective:
Financial
strength/
Commitment
to clients
Failure to fulfil our legal or contractual
obligations to clients could subject the Group to
action and/or claims from clients. The adverse
outcome of such actions/claims could negatively
impact our reputation, financial condition and/or
the results of our businesses.
For example:
In accepting client engagements, Group
companies are generally subject to client duty
of care obligations. Failure to satisfy these
obligations could result in claims being made
against the relevant operating company.
In our Property and Project Management
businesses, we may be responsible for
appointing or overseeing third-party
contractors that provide construction and
engineering services. In addition in our
Property Management business we may be
responsible for health and safety at site-level.
Failure to discharge these responsibilities in
accordance with our obligations could result
in brand damage and/or claims being made
against the operating companies.
In our valuation consultancy businesses, we
can be subject to claims, alleging, in particular
the over-valuation of properties.
The Group has a range of policies in place including
client acceptance, legal and regulatory compliance,
data protection, health and safety, procurement,
contractor management and valuation to mitigate
contractual risk.
In particular we have Best Practice groups, policies,
procedures and training which are designed to
deliver the relevant contractual obligations and
thereby mitigate against the risk of such actions/
claims being made and where such claims occur,
to limit liability, particularly in relation to health and
safety and consultancy services such as valuations.
Such policies are regularly reviewed.
The Group maintains professional indemnity
insurance to respond to and mitigate the Group’s
financial exposure to any claims. As described
below, our strong emphasis on appropriate
business conduct by all our employees, contractors
and associates further mitigates this risk.
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS continued
34
Annual report and accounts 2023
Change from 2022:
Up
Down
Unchanged
Risk Description Mitigations
Change
from 2022
6
FAILURE OR SIGNIFICANT INTERRUPTION TO OUR IT SYSTEMS CAUSING DISRUPTION TO CLIENT SERVICE
Strategic
objective:
Financial
strength/
Commitment
toclients
Major failures in our IT systems may result
in client service being interrupted or data
being lost/corrupted causing damage to our
reputation and consequential client and/or
revenue loss.
There is a risk that a third-party cyber attack
on our infrastructure by a malicious individual
or group could be successful and impact the
availability of critical systems.
Specific back-up and resilience requirements are
built into our systems.
Our critical infrastructure is set up so far as is
reasonably practical to prevent unauthorised
access and reduce the likelihood and impact of
a successful cyber attack.
Our data centres are accredited to international
information security standards. Our IT strategy
is to diversify our services utilising the cloud and
hosting, in order to avoid a single point of failure.
Penetration testing and vulnerability testing is
carried out regularly.
Business continuity and disaster recovery plans
are in place to cover the residual risks that cannot
bemitigated.
We continuously review our resilience to cyber
attacks, implementing new systems and procedures
to address continuously evolving and ongoing
cyber threats.
Cyber insurance cover is in place.
7
OPERATIONAL RESILIENCE/BUSINESS CONTINUITY
Strategic
objective:
Financial
strength/
Commitment
toclients
Significant non-IT events may affect continuity
of service to clients, consequential revenue loss
and reputational damage.
Business continuity plans are in place across our
businesses worldwide to enable us to respond to
external incidents which threaten the continuity of
our operations.
Continuity plans encompass a range of events that
could impact on our people or buildings such as
pandemics, terrorist events and natural disasters.
As with most other large international businesses,
remote working capabilities are robust. We have
teams and processes dedicated to disaster recovery
and the implementation of business continuity
plans that ensure that these can be activated
across key teams at short notice if so required.
8
BUSINESS CONDUCT
Strategic
objective:
Business
diversification/
Geographical
diversification/
Commitment
toclients
Significant non-IT events may affect business
continuity. We operate in international markets
that may present business conduct-related
risks involving, for example, fraud, bribery
orcorruption.
Failure by the Group and its employees to
observe the highest standards of integrity and
conduct in dealing with clients, suppliers and
other stakeholders could result in civil and/or
criminal penalties, regulatory sanction, debarring
and/or reputational damage.
We have programmes to promote compliance with
our Code of Conduct, particularly in areas of higher
risk such as procurement.
We have a zero-tolerance approach to breaches of
our Code of Conduct.
35
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Change from 2022:
Up
Down
Unchanged
Risk Description Mitigations
Change
from 2022
9
CHANGES IN THE REGULATORY ENVIRONMENT/REGULATORY BREACHES
Strategic
objective:
Commitment
toclients
We are required to meet a broad range of
regulatory compliance requirements in each of
the markets in which we operate.
For example:
Some of our operations have regulatory licences:
In the UK, Savills Capital Advisors Limited
and Savills Investment Management LLP are
authorised and regulated by the Financial
Conduct Authority (‘FCA’) in respect of activities
conducted pursuant to the Markets in Financial
Instruments Directive (‘MIFID’) and Alternative
Investment Fund Managers Directive (‘AIFMD’).
Savills Investment Management entities are also
variously authorised by the Bank of Italy, MAS
in Singapore, BaFin in Germany, JFSC in Jersey,
CSSF in Luxembourg and ASIC in Australia.
Savills Group companies also hold financial
services advisory licences in Japan. Our entities
across the Group employ resources and maintain
a framework of controls aimed at preventing our
business being used to facilitate financial crime,
and to comply with complex financial sanctions
regimes which are continually changing in
response to global events.
In addition, some of our service businesses
are regulated by The Royal Institution of
Chartered Surveyors (‘RICS’), for example,
Savills(UK)Limited.
Failure to satisfy regulatory compliance
requirements may result in fines being imposed,
adverse publicity, brand/reputation damage
and ultimately the withdrawal of regulatory
approvals. We also have a number of key
statutory obligations including the protection
ofthe health, safety and welfare of our staff
andothers affected by our activities.
Our Group Policy Framework, which sets out
ourstandards for professional, regulatory,
statutorycompliance and business conduct, is
reviewed regularly.
To support this framework each business has
its own regulatory compliance resources which
monitor regulatory developments and maintain the
internal processes and controls required to fulfil our
compliance obligations.
Our compliance environment, at all levels, is subject
to regular review by internal audit and external
assurance providers.
10
ACQUISITION/INTEGRATION RISK
Strategic
objective:
Business
diversification/
Geographical
diversification/
Strength in
Residential and
Commercial
markets/
Financial
strength
The structuring and integration of acquisitions is
critical to realising the benefits targeted. People,
systems and processes are key components.
We apply the Group Acquisitions Policy and
procedures and use professional advisors in the due
diligence process, and allocate responsibility and
accountability to individuals for integration. Post-
acquisition reporting ensures the Board is aware of
progress against plan.
11
ENVIRONMENT AND SUSTAINABILITY
Strategic
objective:
Commitment to
clients/Financial
strength
Environment and sustainability matters are a
significant consideration for clients, employees
and investors.
Savills offers its clients expert advice on
a growing range of environmental and
sustainability matters.
Savills, like all listed companies, has
commitments and targets to meet in accordance
with the legislation of the relevant jurisdictions.
We apply the Group’s Sustainability Policy and
employ appropriately qualified and skilled teams.
We are continuously enhancing our services in
this area to ensure that we can provide clients,
employees and investors with the best advice
andinformation.
Savills has committed to net zero targets: Scope
1 and 2 net zero by 2030; and Scope 3 (for
controlled assets) by 2040.
We collect data and report in accordance with
the relevant legislation and regulatory framework,
including TCFD (Responsible Business pages 74
to80).
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS continued
36
Annual report and accounts 2023
VIABILITY STATEMENT
The longer-term viability of the Group is assessed for
a period longer than for the going concern analysis.
In accordance with Provision 31 of the UK Corporate
Governance Code, the longer-term viability assessment
was conducted for a period of three years, ending on
31December 2026, taking account of the Group’s current
position and prospects, the Group’s strategic plan, and
the Group’s principal risks and the management of those
risks, as detailed in the Strategic Report on pages 6 to
80. The Group’s emerging risks are also disclosed in the
Strategic Report. This longer-term assessment supports
the Board’s statements on both viability, as set out
below, and going concern as set out on page 151.
Period for assessment
The Directors have determined that a three-year
period would be an appropriate time frame for this
assessment being consistent with the period covered
by the Group’s strategic plan and the cyclical nature of
property markets. The strategy and associated principal
risks which underpin the Group’s three-year plan are
reviewed by the Directors at least annually. The Directors
also satisfied themselves that they have the evidence
necessary to support the statement in terms of the
effectiveness of the internal control environment in
placeto mitigate risk.
Viability assessment and key assumptions
Sensitivity analysis was undertaken on the three-year
plan, including financing projections, to flex the financial
forecasts under a variety of severe downside scenarios,
which involved applying different assumptions to the
underlying forecast both individually and in aggregate.
These scenarios assess the potential impact from
several macro-economic risks, including a severe global
economic downturn analogous to that experienced
during the Global Financial Crisis in 2008/09. The results
of this sensitivity analysis showed that the Group would
maintain significant available facility and covenant
headroom to be able to withstand the impact of such
scenarios over the period of the financial forecast, as
a result of the resilience and diversity of the Group,
underpinned by a strong balance sheet.
Performance against the three-year plan is monitored
on an ongoing basis, including regular Board briefings
provided by the Heads of the Principal Businesses on
the progress made by those businesses. These reviews
consider both the market opportunity and the associated
risks. These risks are considered within the Board’s risk
appetite framework. The Directors continue to monitor
the principal risks facing the Group, including those that
would threaten the execution of its strategy, its business
model, future performance, solvency and liquidity. These
principal risks and the consequent impact these might
have on the Group are detailed on pages 30 to 36.
Viability statement
The Audit Committee reviews the output of the viability
assessment in advance of final evaluation by the Board.
Based on the Group’s strong net cash position and
undrawn £360m Revolving Credit Facility at the year
end, as described in the Chief Financial Officer’s review,
combined with the assessment explained above and in
accordance with the UK Corporate Governance Code,
the Directors confirm that they have a reasonable
expectation that the Group will be able to continue to
operate and meet its liabilities as they fall due, over the
three-year period ending 31 December 2026.
The Directors also considered it appropriate to prepare
the financial statements on the going concern basis as
explained in Note 2.2 to the accounts.
37
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS
Governance
Human Rights
Modern Slavery
Speak-up
TCFD
Social
Our clients
Our people
Community
Helping both
people and our
environment
to thrive
Sustainability and
Environment
Sustainability
Environment
Savills Earth
Read
more
on page
40
Read
more
on page
46
Read
more
on page
64
38
Annual report and accounts 2023
We focus on those key areas where we believe we can
make a difference and endeavour to manage our impact
in a responsible and sustainable manner. Tofulfil this aim
we actively embrace a range of policies and practices
that foster a positive approach towards peopleand the
environment as an integral part of our day-to-day activities.
Group ESG Committee
Responsible (with the Group Risk Committee) for
overseeing climate-risk assessment and other aspects
of the Group’s ESG agenda
Tracks and monitors the delivery of the Group-
wide ESG targets which are aligned to the nine UN
Sustainable Development Goals
Chair: Group Legal Director & Company Secretary
Lead: Group Sustainability Director.
TCFD workstream runs throughout
Our Group ESG Committee
Our ESG Committee, comprising senior representatives
from our Principal Businesses and centralteams, co-
ordinates our ESG strategy.
ESG Strategy
The ESG strategy is set at the Group level and is then
implemented at the regional and country level. The ESG
strategy aligns to the nine UN Sustainable development
Goals where we believe we can make the mostdifference.
ESG Our Strategic Goals
The Group’s ESG strategy is focused where we believe
we can make the most difference. It is developed and
recommended by management and endorsed at Board
level and is then implemented at regional and countrylevel.
Commitment to 9 UN Sustainable
Development Goals Climate Change People
Good Health and
Well-Being
Throughout 2023 Savills plc remained committed
toachieving net zero for its operations (Scope 1
and 2) in 2030 and for its value chain (Scope 3)
greenhouse gas (‘GHG’) emissions by 2040.
Savills also worked with the Science-Based
Targets initiative (‘SBTi’) to verify near-term
decarbonisation targets with as part of this,
Savillsbeing recognised by the Race to Zero
andBusiness Ambition for 1.5°C campaigns.
Subsequent to year end, in February 2024, Savills
had near-term science-based carbon reduction
targets validated by Science-Based Targets
initiative (SBTi) as follows:
Savills plc commits to reduce absolute Scope 1
and 2 GHG emissions 72% by 2030 from a 2019
base year.
Savills plc also commits to reduce Scope 3 GHG
emissions from purchased goods and services
51.6% per million GBP of value added by 2030
from a 2022 base year.
Savills plc further commits to reduce Scope
3 GHG emissions from investments 51.6% per
square meter within the same timeframe.
Savills have a supplier commitment to influence
stakeholders to work towards carbon neutrality.
In addition, Savills have comprehensive services
offering SustainabilityConsultancy.
Developing Talent
Diversity & Inclusion
Promoting Health & Wellbeing
Quality Education
Gender Equality
Affordable and
CleanEnergy
Decent Work and
Economic Growth
Sustainable Cities
andCommunities
Responsible
Consumption
andProduction
Climate Action
Life on Land
39
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Sustainability and
Environment
2023 Highlights
Savills UK win Gold for Sustainability at 2023 International
CSR Excellence Awards
Savills IM win “Most Responsible Investment Firm” atCSR
Excellence Awards
Savills IM wins Property Week’s Property Fund Manager
of the Year award, demonstrating how sustainability is
embedded into its investment management approach
Savills Earth wins CIBSE Building Simulation Award
2023and is a CIBSE Building Simulation Young Modeller
Award 2023 finalist
Savills Poland wins ESG Strategy category at Property
Prize Awards
Savills Italy recognised for commitment to all-round
sustainability in the Real Estate category at the LC
Sustainability Awards
Increased renewable energy tariffs across global office
portfolio, for example, in the UK green electricity now
accounts for 88% of our usage
Increased use of efficient LED lighting, for example, in
Continental Europe and the Middle East 80% of occupied
floor area now uses LED lighting
87% of total office space occupied by Savills North America
is now located in accredited, energy-efficient buildings
Savills Earth advised clients on the planting of
2,816,950trees
Savills has near-term 1.5°C-aligned carbon reduction
targets validated by Science Based Targets initiative (SBTi)
FTSE4Good rating to 3.5/5 and a Carbon Disclosure
Project (CDP), B rating from 2023 surveys.
Savills recognises
the need for urgent
action by real
estate owners and
occupiers to help
address the climate
crisis and support
the transition to
a greener, more
resilient economy.
40
Annual report and accounts 2023
Our Net Zero Targets
Throughout 2023 Savills plc remained committed to
achieving net zero for its operations (Scope 1 and 2) in
2030 and for its value chain (Scope 3) greenhouse gas
(‘GHG’) emissions by 2040. Savills also worked with the
Science Based Targets initiative (‘SBTi’) to verify interim
decarbonisation targets with as part of this, Savills being
recognised by the Race to Zero and Business Ambition
for 1.5°C campaigns.
Subsequent to year end, in February 2024, Savills had
near-term science-based carbon reduction targets
validated by Science Based Targets initiative (‘SBTi’)
asfollows:
Savills plc commits to reduce absolute Scope 1 and
2 GHG emissions 72% by 2030 from a 2019 base
year. Savills plc also commits to reduce Scope 3 GHG
emissions from purchased goods and services 51.6% per
million GBP of value added by 2030 from a 2022 base
year. Savills plc further commits to reduce scope 3 GHG
emissions from investments 51.6% per square meter
within the same timeframe.
Separately from our SBTi approved targets, Savills
Group has a long-term target to achieve net zero for
its operations (Scope 1 and 2) in 2030 and for its value
chain (Scope 3) greenhouse gas (GHG) emissions
by2040.
Environment – Our Strategy in Action
The Board is responsible overall for managing ESG
and climate-related risks and realising opportunities,
as detailed in the Governance section of the TCFD
Disclosures on page 74.
A summary of our ESG strategy, which is founded on
the UN Sustainable Development Goals framework, and
our Sustainability Policy can be found here (https://
www.savills.com/why-savills/environmental-social-and-
governance.aspx)
Across the Group we continue to implement practical
initiatives to improve the environmental performance
of the workspaces that we occupy, including in the
design of new offices, retro-fitting existing ones, and
the ongoing active management of both. Initiatives
underway across our office locations globally include:
Ensuring each Principal Business has costed actions
in place sufficient to meet wider Group Net Zero
transition plans, aligned to our decarbonisation
targets for 2030 and 2040
Replacement of standard electricity tariffs with certified
renewable ‘green’ energy tariffs, where available
Ensuring that all future office fit-outs follow
sustainability fit-out guidelines or industry equivalents
e.g., BREEAM refurbishment
Ensuring that all new leases where possible, are
consistent with requirements of the Savills Green
Lease Guide
Transitioning all company and leased cars away
from petrol and diesel to low emission vehicles prior
to2028.
41
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
(‘AMR’) meters were installed across c.40% of the office
portfolio. Savills CEME has also worked to increase
coverage of more efficient LED lighting. 22 of 38 Savills
CEME offices now have full LED solutions, equating to
80% of occupied floor area, increased from 17 offices in
2022. Meanwhile, Savills Asia Pacific has offices in 9 out
of 12 countries which are now close to 100% LED lighting.
Others are well on the way to a managed transition,
replacing with LED as old lighting requires replacement,
for example, Savills Malaysia and Savills are replacing
fluorescent light tubes with LED. For North America 87%
of total office space occupied by Savills is now located
inaccredited, energy-efficient buildings.
In CEME, our teams continue the transition away from
carbon fuel using vehicles, with the proportion of Electric
Vehicles (‘EV’) now 10% and hybrid at 30%. The total
CEME fleet continues to grow slightly at 4% compared
to 2022, but with a decrease in fuel vehicles of 13% the
transition is progressing.
During the year we made progress on obtaining
certified renewable energy tariffs. For the UK, renewable
electricity tariffs now account for 88% of the total
requirement (2022: 83%) with green gas tariffs now
covering 91% of the UK leased office spaces. In CEME,
12 of 38 offices now have green tariffs, an additional 2
from 2022. In North America, our Chicago office started
a green energy pilot in October and plans are in place
for the New York HQ to be 100% green energy backed
by RECs in 2024, with 25% already being sourced from
green energy. Savills IM has also increased green tariffs
with renewable energy now a source to some extent
at Paris, Frankfurt (Main), Hamburg, Munich, Milan,
Warsaw and Stockholm offices. There is still much more
work to do on this agenda and we will continue to seek
furtherimprovement.
Savills has continued to focus on improving the energy
efficiency of our office locations globally. For example,
in 2023 in the UK, 41 new Automatic Meter Reading
Sustainability and Environment continued
42
Annual report and accounts 2023
Environmental Social and Governance (‘ESG’)
training programmes
Savills CEME rolled out further ESG learning programmes
to 10 countries in 2022 and then to the remaining
countries in the first half of 2023, achieving full coverage.
The combined completion rate for Savills CEME
stands at over 80%. In 2023, Savills UK also launched
a sustainability learning hub, containing three modules
and a learning pathway including podcasts, articles and
videos. For Savills Asia Pacific ESG learning is made
available and the region is now working to develop
further ESG learning and development programmes.
For Savills North America, employee ESG training will
be a key focus for 2024; in the meantime the region has
sponsored specific employees to attend the CoreNet
ESG programmes. Savills IM continues to utilise ESG
Learning and Development to upskill its teams on ESG,
with a learning approach which is broken down into
three different areas: legislative learning, role-based
learning and strategic ESG development opportunities.
We know that the infrastructure in parts of CEME is
not as accessible as others, so the move to EV may
be slower than desirable in some locations, however,
our management teams are agreed upon the need for
this important transition. Changing-out gas heating
systems in offices which are landlord-controlled remains
challenging. However, we continue to review where
we can remove gas from the leased portfolio via office
moves and equipment upgrades as relevant. The UK also
launched a new Business Travel Policy which has been
integrated within Savills UK sustainability targets. China
has a green travel guidance in place focused on using
high-speed train instead of planes, whereappropriate.
Responsible resource use and wider green
building certifications
Significant progress has been made regarding the take-
up of green building certifications for our occupied office
spaces. For CEME, 10 of 38 offices hold green building
certifications and four other offices are in the process
of securing these. In Australia all buildings which are
occupied are NABERS-rated, while in China
several offices now have LEED and WELL accreditations.
In Hong Kong, preparations for BEC Climate Ready
certification are in hand, while other buildings have
obtained BEAM Plus Existing Building Platinum Rating.
Similarly, Savills Japan has relocated its office to a
CASBEE Smart Wellness Office building, with Savills
Malaysia also relocating its Kuala Lumpur office to a
Green office building. Savills Korea, Savills Thailand,
Savills Taipei and Savills Vietnam all now have some
LEED certified office space and Savills Singapore has
obtained BCA Green Mark and BCA Green Mark Healthier
Workplace certifications. Savills headquarters in London
holds a BREEAM certification, while Savills IM offices
have BREEAM In-use for Milan, a BREEAM Construction
for Warsaw, a LEED (Core & Shell) for Madrid, a Sweden
Green Building Council (‘SKA’) in Stockholm and a WELL
enabled office space inLondon.
In CEME paper consumption has seen a 7% increase
compared to 2022; however, this represents a 54%
reduction compared with 2019 for paper use per FTE.
Savills UK maintains a recycling target of 75% and is
currently achieving 49%. Office sustainability targets are
in place covering printing, recycling, energy consumption
and awards to incentivise improvements. A further
decrease in printing has been measured in the UK, with
an approximate reduction of 70% in total printing figures
since 2019, with some Savills UK divisions now working
towards paperless working. We continue to work towards
a wider collection of accurate water consumption data
for our leased occupied officespaces.
43
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Savills Earth and
wider Sustainability
Consultancy Services
2,816,950
of land for natural capital and
nature restoration projects
NEW SOCIAL VALUE
TEAM CREATED
AND SAVILLS
ADVISED ON:
62
clients
38
and acted as
sustainability
advisor on
26
further
projects
+
100,000 acres
ADVISED ON:
ADVISED CLIENTS ON THE PLANTING OF:
trees across England and Scotland
Waste
management
plans and
10
Waste
management
audits completed
in Ireland
21
A partner of
Global Real Estate
Sustainability
Benchmark (‘GRESB’),
Savills has supported
GRESB submissions
totalling assets under
management of
over £10 billion for
16 portfolios across
7 sectors.
30 BREEAM, 14 BREEAM
In-use, 21 LEED and 9 WELL
certifications. In addition to 12
BREEAM In-use aligned climate
resilience reports.
CLIENT SUSTAINABILITY STRATEGIES CREATED:
social projects
22
During 2023 our Savills
Earth teams in the UK
worked on client projects
which aim to provide 2.3
GW of energy storage
including 0.7 GW of
hydrogen, and advised on
19.3 GW of in-development
and operational renewable
energy generation projects.
They also assisted clients
with 0.78 GW of demand
connections including
EV charging.
44
Annual report and accounts 2023
ADVOCACY PARTICIPATION:
UK Net Zero Carbon
Buildings Standard,
UKGBC Retrofit Offices
Group, CIBSE Building
Simulation Group,
LPDF’sSustainability
Working Group, Sutton
Council’s Housing and
Regeneration team Group.
Advisory roles on the
Social Value UK Advisory
Board (Chair), Creative
Estuary Board, Land Aid
Grants Committee and
GLA High Streets for All
Advisory Board.
Carbon audits completed
on natural capital in the
food and farming sector
CIBSE Building Simulation
Award 2023 Winner, CIBSE
Building Simulation Young
Modeller Award 2023 finalist.
50,398 hectares
Major retail real estate sustainability study
for leading luxury brand in Asia and a
decarbonisation pathway for Singapore-
listed REIT, in addition to holding 5 workshops
with Hong Kong-listed developer.
+
180
SUSTAINABLE DESIGN
CONSULTANCY SERVICES
PROVIDED:
planning
applications
25
pre-planning
projects
5
FIRST SET OF SAVILLS
ENVIRONMENTAL EXCHANGE
BIODIVERSITY NET GAIN
CREDITS SOLD TO:
residential developers
covering a total area of
3
223
Independent
ISO 14001
Certifications
established
10
graduates and
11
apprentice
supported in 2023
1
New Savills ESG Client-facing
services in Europe, providing
ESG Due diligence pre-acquisition,
a GRI-aligned report, 4 CRREM
analysis reports, 12 energy strategy/
efficiency projects and 38 energy-
consulting services.
NEW SERVICE LINES:
Climate risk and
resilience,
Savills GreenFit,
Savills Environmental
Exchange, Grid Consultancy
(Grid IQ), Sustainable
Master-planning
AWARD WINNING:
Contributed to 49 press
pieces in 23 different
national, regional and
trade publications on
ESGand sustainability-
related topics. Produced
43 blog pieces and a
five-episode Savills Earth
podcast series that has
been downloaded over
17,000 times.
ISO 14001 audits
undertaken
45
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Be Extraordinary,
together.”
Social
RESPONSIBLE BUSINESS continued
2023 Highlights
24,300 volunteering hours were given by
our people this year; an increase from 16,700
in2022
£2,090,000 donated by the Group to
charitablecauses
£4,705,925 social and local economic value
wasdelivered for Savills UK
Over 580 pro bono hours given
Savills UK wins EDI (Equality, Diversity and
Inclusion) Programme of the Year at Inspiring
Women in Property Awards hosted by
PropertyWeek
Savills North America has placed 21st in the
Newsweek Excellence 1000 Index, identified
as an example of corporate success and
responsibility
Savills Earth UK teams worked on client projects
which aim to provide 2.3 GW of energy storage
including 0.7 GW of hydrogen and advised on
19.3 GW of renewable energy projects. They also
assisted clients 0.78 GW of demand connections
including EV charging
Savills advised clients on planting 2,816,950
trees and 108 carbon audits completed on
natural capital in the food and farming sector
Bisnow’s UK Rise Initiative recognised Savills UK
as one of the companies leading the charge to
improve diversity in real estate
Savills France nominated for Innovation in
management (Nuits de l’Immobilier) for creating
a community engagement role
Savills UK named as exemplar in EG’s 2022
LGBTQ+ Attitudes & Actions
UK Apprenticeship Employer of the Year at the
Personnel Today Awards
Savills UK 1st in the Times Rate My Placement
for Apprentices (up from 8th in 2022) and
listedTop 100 Apprenticeship Employers of
2022 – 2023
Savills UK awarded the Times Graduate
Employer of Choice for the seventeenth
consecutiveyear.
A company is nothing without a strong culture.
We actively foster an inclusive workplace –
aiming to attract diverse talent, develop and
support our people, and always lead by example.
46
Annual report and accounts 2023
Our cultural framework
Our Purpose
Our Vision
To be the real estate advisor of choice in the markets we serve.
The growth of the Group is underpinned by providing best-in-class
insights and advice to help individuals, businesses and investors
make better real estate decisions.
Our Values
We Collaborate
We Empower
We Challenge
We Listen
Helping people thrive through
places and spaces
47
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Helping our people to be the best they can be to fulfill
their potential we:
Encourage an open, inclusive and supportive
culturein which every individual is respected
Help our people to excel through appropriate
learningand development
Share success and reward achievement
Recognise that our people’s diverse strengths
combined with good teamwork produce the
bestresults
Believe that a rewarding workplace inspires
andmotivates
Strive to provide an environment in which our
people can be their whole selves and can flourish
and thrive – this allows us to recruit, motivate and
retain talented people and build on our status as
anemployer of choice
Engage with our people to communicate our
vision and strategy through well-established
internalchannels.
Employee engagement
We believe that in order to deliver our strategy, it
is essential that our people are fully engaged and
motivated. Our employees’ wellbeing is fundamental
to this and, we continue to build on our wellbeing
programmes and activities globally. We continue to listen
to and support the needs of our people, ensuring honest,
open lines of communication to enable our employees
to stay positive, connected and productive, while feeling
valued and supported.
We use multiple channels to communicate and
engagewith employees, including regular town hall and
other meetings, all-employee emails, our intranet, and
our digital platform which allows direct employee
communication (in local languages) with Non-Executive
Directors (including the Chair) to allow employee
feedback to flow to the Board direct. We also have an
independently facilitated ‘Speak-up’, (whistleblowing)
hotline to allow colleagues to raise concerns in
confidence if they wish about the conduct of our business.
Our People
48
Annual report and accounts 2023
We gather feedback regularly from our employees to
assess their levels of engagement. For example, in 2023
we undertook an employee survey in the UK which had a
63% response rate and a 91% engagement index score.
Using questions provided by the independent survey
facilitator, questions ranged from how proud employees
felt to work at Savills to how seriously they believed
Savills takes Diversity and inclusion.
Developing our people
We firmly believe in the value of developing future
talentfrom within the Group and we want people to
grow their careers at Savills. We work hard to help
nurture the entrepreneurs and leaders of the future and
aim to foster a culture which enables our talented and
diverse people to thrive.
We invest heavily in our people’s development and
encourage everyone to pursue opportunities for
growth. We support our employees to develop and
grow their careers. Our learning programmes are
designed to respond to the specific development
needs of employees identified through their annual
performance appraisals and we encourage all our
employees to attend conferences, internal events, and
participate in projects to supplement their Continuous
Professional Development (‘CPD’). We also deliver
learning programmes to reinforce and support the
development of our values and behaviours; for example,
in relation to financial crime risk, Our Code of Conduct
and data security and data management programmes.
We continue to deliver learning and development in all
areas including management and leadership, client and
business skills and professional and technical skills.
How the Board engages with employees –
Seepages 101 and 102.
49
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Savills will strive to be a
truly inclusive employer
within the real estate
sector by having the
right inclusive policies,
learning and development,
leadership and recruitment
principles in place to
ensure all employees and
clients are treated fairly
and are able to be their
true, whole selves.”
Diversity and inclusion
We aim to do this
by working to:
attract the most diverse talent at all stages
of their careers from all backgrounds
develop our diverse talent, ensuring clear
career paths with no glass ceilings
lead by example with our most senior
leaders setting an inclusive culture.
50
Annual report and accounts 2023
select people of the highest quality from the widest
available pool of talent; this makes Savills a better
business. We are committed to recruiting, developing and
retaining diverse talent which reflects the communities in
which we live and work. We work together to bring out
the best in each other and to sustain the strong working
relationship ethic that has nurtured our ‘can do’ attitude.
As an organisation committed to diversity in its workforce,
we will continue to strengthen our policies, processes
and practices to develop our diversity and inclusion plans
across the Group’s markets and geographies, consistent
with our corporate goals. There are many ways in which
we are working to further build diversity: leadership,
learning and awareness, employee listening, recruitment
and our approach to talent management.
The Group has six key diversity and inclusion pillars
covering: gender, social mobility, ethnicity, LGBTQ+,
disability and age. Our objectives and the progress we
have made across all six pillars can be found below:
Our strategy is to embrace diversity and provide a
platform and a supportive environment in which all our
employees can be the best they can be. Diversity and
inclusion remains a key priority for the Board. Inclusion
is at the heart of our culture, which is founded in mutual
respect and non-discrimination in respect of age,
disability, gender, race, religion, sexual orientation or
socio-economic background. With oversight from the
Board, we have continued to implement our Diversity
and Inclusion strategy. We work hard to ensure those
skills, experiences and perspectives are nurtured
andencouraged.
We continue to work to evolve our activities to educate
our people, take decisive action, generate engagement
and help implement our inclusion and diversity initiatives.
We look to nurture an inclusive culture in which
difference is accepted and valued. We believe that
diversity of thought, experience and background at all
levels gives us a competitive advantage and underpins
the success of our business by giving us the ability to
Area of focus Objectives Implementation What we do
We aim to
support all
our colleagues
through every
age and stage
of their career
with relevant
development,
policies,
support
and benefits
Flexible working
Improving internal
communication of existing
and new policies
Promoting mentoring and
rewarding loyalty
Ensuring that policies and
support are offered for
working carers
Menopause awareness
training.
We support a significant number of people to
work flexibly for different reasons to accommodate
personal and professional requirements
We are committed to our UK ‘Making your
Mentoring programme relevant for the modern
workplace’, a scheme that has been in place for
many years and which allows both mentor and
mentee to benefit from their involvement
Launched a carers’ network to support those who
have caring responsibilities. We continue to work
with Carers UK and Employers for Carers to provide
support to those with caring responsibilities
Celebrated Intergenerational Working week by
holding a panel celebrating the different strengths
a multi-generational workforcebrings.
Our goal is
to create an
accessible
and inclusive
business
where people
of all abilities
can work for
us or with us
without barrier
Raising awareness through
supporting internal and
external events
Implementing compulsory
diversity and equality
awareness training across
thebusiness
Engaging with a number
of professional bodies
and diversity groups to
obtain their assistance
andexpertise
Removing the stigma –
promoting awareness of
mental health issues.
We are committed to being a ‘Valuable 500’
business, which is a pledge to encourage 500
companies across the globe to sign up and agree
to be more inclusive in terms of disability
CEME held workshops on apparent and hidden
disabilities during 2023 similarly the UK held an event
to raise money for charity partners and to hear from
inspirational speakers on their disabilities and abilities
In Asia, Savills Singapore, had a focus this year on
hiring and supporting individuals with disabilities,
while Savills China focused several of their social
outreach efforts to support the disabled
UK launched a Disability ‘EnAble’ network to
support those in the business who have a disability
or long-term health condition
We hold a certification as a Disability Confident
Committed Employer (Level 2) in the UK.
Age
Disability
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Area of focus Objectives Implementation What we do
We ensure that
all cultural,
religious and
ethnic diversity
is celebrated
and should
never be a
barrier to being
your true self
at work
Ensuring zero tolerance of
harassment and bullying
Making equality in the
workplace the responsibility
of all leaders and managers
Taking action that supports
ethnic minority career
progression.
Savills globally supports Black History Month with
educational programmes highlighting key black
role models
Our US Building Inclusivity and Diversity Group
regularly hosts speaker and panel-discussion
events for our employees and clients to encourage
awareness and constructive dialogue regarding
diversity and inclusion
In North America, our Employee Resource Group
‘Black Excellence United’ focuses on recruiting,
retention, collaboration and advancement of
diverse communities
Savills US Junior Development programme over
the last four years 84% of participants were from
groups classed as diverse
BeU’s Black History Month webinar created a
‘Book of Bios’ and ran a back-to-school drive
supporting over 4,400 students
Savills UK has signed up to the Race at Work
Charter, a UK initiative designed to improve
outcomes for Black, Asian and Minority Ethnic
(‘BAME’) employees in the UK.
Gender Working
towards
ensuring the
same access
to opportunity
and experience
for everyone
at Savills, no
matter their
gender
Continue to ensure that our
learning and development
programmes fully support
our approach to diversity
and inclusion
Relaunched our gender
equality and unconscious
bias training, to further raise
awareness of diversity
Launched a Communication
Skills programme for
women focused on public
speaking and participating
inpanelevents.
Our ‘Women in Leadership positions’, determined
in accordance with FTSE Women Leaders
Review criteria, was 37.1% as at 31 October
2023 (31 October 2022: 36.5%). We continue to
remain focused into the medium term on further
improving gender diversity
We will continue to evolve our approach to meet
the needs of our clients and people
In Asia, Savills India have had a focus on
supporting women in the workforce, while in North
America our Women’s Initiative Network WIN
organised a virtual International Women’s Day,
with monthly internal communications and hosted
3 insightful webinars.
LGBTQ+ Embrace
diversity and
provide a
platform and
a supportive
environment
for everyone
to be the
best they can
be. Improve
LGBTQ+
inclusion in the
workplace
Raising awareness
Recruiting and retaining
bestpeople.
Hosted a significant Pride celebration in London in
2023 with a focus on raising money for the Albert
Kennedy Trust
As part of LGBTQ+ History Month Savills
highlighted one inspirational LGBTQ+ figure
eachweek
Savills North America’s Pride+ group organised an
LGBT+ roundtable and a Pride month session on
allyship and inclusivity in the workplace
In CEME, D&I was further promoted through
28 wider D&I country initiatives, including
participation in Pride month.
Diversity and inclusion continued
Ethnicity
Gender
LGBTQ+
52
Annual report and accounts 2023
Area of focus Objectives Implementation What we do
Socio
economic
We aim to
educate and
remove any
barriers due
to social
backgrounds
by supporting
initiatives
which drive
social mobility,
in both our
organisation
and the
communities
we operate
within
Creating a workplace that
provides an equal and
fair platform for everyone
to be the best they can
be regardless of their
background
Increasing diversity of
talentpool
Inspiring the next generation
to consider property for
theircareer.
We are a founding sponsor of Rethink Food,
providing vertical farming towers in primary
schools in the UK
Donated our Chelsea Flower Show garden to a
children’s home where it was re-purposed to a
playground and to support the children growing
their own food
During 2023 Savills Vietnam’s ‘Savills Cares’
programme aimed to improve the futures of
underprivileged children in Vietnam through
education. Savills Vietnam’s teams worked
with charity partners Blue Dragon Children’s
Foundation and Saigon (Ho Chi Minh) Children’s
Charity to deliver scholarships, with the equivalent
value of US $20,000 per year. Since 2017, Savills
Vietnam has supported 59 underprivileged
students to stay in tertiary education
Our UK apprentice scheme has gone from
strength to strength – Savills now has 228
apprentices in the UK
Working with Career Ready, a social mobility
charity, to offer 15 work placements a year for
three years
In Savills Vietnam, there has been a strong
emphasis on building a diverse team representing
different generations, genders, academic
backgrounds and nationalities.
Gender balance
In accordance with Companies Act 2006, as at
31December 2023 our total global workforce of
40,503 colleagues comprised 21,668 males (53%)
and 18,835 females (47%). Of these, 196 were senior
executives (157 (80%) males, 40 (20%) females)
comprising members of the Group Executive Board
and Board members of the corporate entities whose
financial information is incorporated in the Group’s
2023 consolidated accounts in this Annual Report.
During the year, the Company’s Board of Directors
comprised 9 members – 6 males and 3 female.
In accordance with the Equality Act 2010, Savills
UK, as an employer with 250 or more UK employees
publishes an annual gender pay report (calculated
in accordance with the published requirements) on
the Savills UK’s website. (calculated in accordance
with the published requirements) on the Savills
UK’swebsite.
Socio
economic
53
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Diversity and inclusion continued
Wellbeing and mental health
The wellbeing of our people is fundamental to our
high-performing and supportive culture.
We have established wellbeing programmes, and
provide a range of benefits, services and support while
encouraging everyone to take a proactive role in their
own wellbeing.
We want our workplaces to have a culture of openness
and help eradicate the stigma of mental health through
educational events, skill building and awareness raising.
In 2023 we continued
to focus on initiatives
toraise awareness
around mental health
and wellbeing
Savills UK has increased its number of Mental
Health Champions in 2023 to 340 which is 5%
of UK employees. Awareness was further raised
by marking both World Suicide Prevention Day
in September and World Mental Health Day
inOctober.
In Savills CEME, 12 countries have formal mental
health support from an external provider, while
other countries have held events and focused
on raising awareness of mental health and
widerwellbeing.
Building on the Savills Asia Pacific regional
eventin 2022, the majority of the Savills
business in Asia Pacific have hosted their own
country-specific mental wellness-related events,
includinghealth talks.
For Savills North America, ‘Headspace’ is the
dedicated external mental health partner,
which regularly hosts wellness workshops.
These sessions cover topics like enhancing
sleep quality, achieving work-life balance,
and practicing mindfulness. Employees have
ongoing access to educational resources and
videos addressing mental health topics through
further learning programmes. In 2023 Savills
North America launched a Step Challenge to
promote regular physical activity.
Savills Investment Management’s mental health
partner MYND UP hosted a series of webinars
available to all and the business also undertook
MarchOn!, where employees were encouraged
to walk 100 miles throughout the month and
reconnect with nature and promote positive
behaviours. Savills Investment Management
similarly undertook PrideOn! in June, substituting
walking for cycling as part of this challenge to
promote better fitness and sustainable transport.
We continue to develop and make available to
all our people wellbeing initiatives and benefits
to raise awareness of health and lifestyle issues
affecting mental health and wellbeing.
54
Annual report and accounts 2023
In our pursuit of making a positive impact for our clients,
we continue to take a long-term approach to our client
relationships, ensuring we gain a deep understanding
of our clients’ evolving needs, challenges, and priorities
and balancing these against the backdrop of changing
market conditions. Making a positive impact for our
clients is at the heart of our purpose. We believe in
creating and nurturing strong enduring relationships,
continually listening to our clients, and working in
partnership. If it matters to our clients, it matters to us.
Client care excellence
As part of our Client Relationship Management (‘CRM’)
programme we have client advocates in place who
maintain continuous dialogue with our clients and
share updates relating to their strategy and evolving
needs with the wider Savills client teams. This strategy
ensures we implement a proactive approach to client
engagement; that our clients receive the best quality
advice at the right time; and that they experience a
joined-up, consistent and personal service.
Client listening
Our commitment to excellent client care is reflected
in our client listening programme. We commission
independent client reviews to ensure that we gather
feedback on how we are managing client relationships,
areas for improvement and opportunities for added
value. We assess service satisfaction levels, and we also
carry out post-bid feedback to incorporate learnings into
future commercial pursuits. This investment into better
understanding our existing and prospective clients puts
us in a stronger position to both retain mandates and
winnew projects.
Our overall approach to client listening provides deeper
insight into our clients’ priorities and preferences so
we can refine the Savills client experience. This may
affect how we assemble the right client team or the
development of our service offering. A key example
includes the bolstering of ESG services across markets –
asignificant and growing strategic priority for our clients.
In 2023 we saw the strengthening of this service offering,
with the addition of the Social Value team, reflecting
both our own and our clients’ commitment to positively
contribute to the communities we serve.
Collaboration
We believe that our clients will get the best result when
we work as one, and we therefore foster a collaborative
and inclusive culture which embeds a good understanding
of the breadth of Savills expertise across all our teams. We
run various initiatives to ensure our people are continually
upskilling and learning about our broad and evolving
service offering as well as partnering internally.
Our Clients
This enables us to bring in the right expertise to our
clients from across the organisation and therefore
ensures our clients can be empowered with best-in-
class advice at the right time to make smarter property
decisions. An example of this includes our extensive
‘lunch and learn’ programme as well as our expanding
on-demand learning resources. We have also rolled out
several initiatives to promote an inclusive culture and in
2023 we engaged with clients through our diversity and
inclusion networks to ensure our work in this area is not
only contributing to our internal culture but is a shared
experience which adds value to our clients’ diversity
andinclusion goals.
Nurturing and supporting our people to ensure they
have the right skills and competencies is essential
to the success of our client programme. As well as
the upskilling on the breadth of services highlighted
above, we also provide tailored training and coaching
aimed specifically at supporting our people in client
leadership roles. To embed our relationship ethos across
the organisation we also ensure colleagues at all levels
receive the appropriate learning opportunities to evolve
their client relationships. In 2023 we expanded our
‘Next Generation’ client engagement programme, and
partnering with our excellent research teams we not only
provided our junior team members with a platform to
learn and grow their client relationships, also benefitting
our clients. This forward-thinking initiative aligns with
our commitment to staying ahead of industry trends,
ensuring we provide innovative solutions that align
withour clients’ future needs.
Client insights technology
To augment our client care efforts, we continually invest
in cutting-edge technology. In 2023 we completed the
roll-out of our relationship intelligence portal across UK
& CEME, which has enabled visibility of our vast network
of clients and prospects across the region and further
supports the delivery of a seamless client experience
across teams and borders. Our goal is to ensure greater
visibility of client intelligence and increase efficiencies
and collaboration between client relationship teams
across the UK and CEME; we will continue to further
embed our integrated client insights platform and
analytics capability across markets.
Our overall approach to client care is underpinned by
ourcommitment to making a positive impact for our
clients, which sits at the heart of our purpose. We will
continue to strive for client excellence, and refine our
approach as well as invest in the appropriate skills and
technologies to evolve our strategy in line with our
clients’ future needs. Being unified in both our purpose
and our values will continue to drive the best-in-class
client experience we strive for.
55
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
People are at the heart of
our business. We aim to
create a lasting positive
social impact on the local
communities which we
impact through the way we
engage with them, the work
we do and the charitable
initiatives we undertake to
support them.”
Community
RESPONSIBLE BUSINESS continued
Each year, a range of
social and community-
focused initiatives are
undertaken by Savills
worldwide.
In 2023, 24,300 volunteering hours were given
by our people, a significant increase from
16,700in 2022
The Group and combined Regional Businesses
also donated £2,090,000, with £4,705,925
Social and Local Economic Value delivered for
Savills UK and over 580 pro bono hours given.
Here are just some of the initiatives we are very
proud to have been part of in 2023:
56
Annual report and accounts 2023
Savills Vietnam
Savills Vietnam’s ‘Savills Cares’ programme works
to improve the futures of underprivileged children
in Vietnam through education. With its charity
partners Blue Dragon Children’s Foundation and
Saigon (Ho Chi Minh) Children’s Charity, Savills
Vietnam delivers scholarships of US$20,000 per
year. Since 2017, Savills Vietnam has supported
59 underprivileged students to stay in tertiary
education. Some of the students supported come
from ethnic minorities including Hmong, Thai,
Tay, and Dao. The ‘Students for a Better Future’
programme supports disadvantaged children
and young adults in Vietnam to reach their full
potential through quality education, training, and
job opportunities. In 2023, Savills Cares supported
39 students; of the six graduates, four have now
gained successful employment. Savills Vietnam
alsodonated 25 computer monitors and 105
laptops to this cause.
Savills Poland
In June, World Environment Day (‘WED’) was
celebrated by businesses worldwide and marked by
many Savills offices globally. To mark WED this year,
our teams in Poland organised a special workshop
for 15 teenagers from a nearby school at its offices.
The purpose was to raise awareness and knowledge
about sustainable development, climate change
and the challenges facing the younger generations.
Following the success of the Warsaw event, where
six of our employees volunteered, the team in Poland
are working to ensure this idea can be scaled so
otheryoung people can benefit from it.
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Community continued
Savills China
During 2023 China’s teams focused their social
outreach efforts to support the disabled and elderly
as well as working with autism charities within the
locations within which Savills operates. Over 300
Savills team members participated in various events
across China which celebrated the release of a new
book written by autistic children, in partnership
with the charity Light of Rainbow.
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Annual report and accounts 2023
Savills North America
This summer, Savills Black Excellence United (‘BeU’)
Philanthropy Committee, initiated a ‘Back-to-School
Drive’. inspiring the charitable spirit and generosity
of Savills employees in eight offices across the US;
they promoted the initiative through collection
containers that could be filled with vital supplies
for underserved students in communities across
regions. Eight schools were supported, serving over
4,400 students, equating to nearly five students for
every member of the Savills North America team.
Every year, the New York real estate community
comes together for the Mid-Atlantic Juvenile
Diabetes Research Foundation (‘JDRF’) Real Estate
Games. Its 34th annual Olympic-style competition
continued its mission of raising funds for Type
1 diabetes research for the JDRF. Savills North
America, as the Founding Partner, has consistently
championed this cause in DC, New York and
Chicago since the games began. In 2023, the DC
Games yielded significant results, breaking records
while raising an impressive $825,000.
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Community continued
Savills UK
Savills UK is a founding partner of LandAid’s
pro bono programme and continues to support
this charity network by providing free-of-charge
advisory and consultancy services. In 2023 our
UK staff donated over 580 hours to pro bono
projects across the UK, aiming to positively support
communities using Savills specific industry skills
and expertise. 2023 pro bono projects included:
Pre-acquisition survey used for move-on
accommodation for young people who had
been homeless
Identifying and securing new premises for a
charity requiring a location with a 15-mile radius
of Buckingham
Condition survey and carbon assessments
undertaken on six properties owned by a
charity which works with young people who
arehomeless and leaving care
PR support to a charity which provides help to
families experiencing poverty.
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Annual report and accounts 2023
Savills Investment
Management (Savills IM)
Throughout 2023, Savills Investment Management
organised a number of internal events to raise
money for its partner charity, The Cycle, which
is dedicated to addressing gender equality by
providing safe water, sanitation, hygiene services,
and menstrual education programmes to deprived
primary schools in India. The Cycle’s remarkable
efforts have already supported over 75,000 people,
ensuring daily access to safe sanitation. Notably,
six of Savills IM’s global offices, approximately
100 employees, collaboratively organised a ‘Big
Buffet’ event in December to support The Cycle.
The initiative was sponsored by Savills Investment
Management’s Gender Group and generated a warm
and festive atmosphere for colleagues to share the
seasonal spirit through an assortment of home-
baked goods. The event also served as a platform
for individuals to bring in dishes from their cultural
backgrounds, highlighting the richness of our offices’
diversity. The funds raised through donations to ‘fill
a plate’ were then donated to The Cycle, making a
lasting impact on the communities they serve. Over
£5,300 was raised for The Cycle during 2023.
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RESPONSIBLE BUSINESS continued
Savills Investment
Management (Savills IM)
In 2019, a Savills Investment Management fund
acquired the Cathedral Hill estate, a 94,000ft²
industrial site Guildford, Surrey, envisioning a net-
zero carbon retrofit. Instead of a complete rebuild,
the focus was on utilising the existing structure
to reduce overall carbon emissions and create a
leading industrial investment. Key goals included
elevating EPC ratings, obtaining a BREEAM
Excellent certification, transitioning to renewable
energy, and modernising travel facilities.
Savills UK Building and Project Consultancy teams
managed the project. The transformed Cathedral
Hill boasts occupant-focused upgrades, including
increased natural light, enhanced air quality and
improved office facilities. Renewable energy
integration, through individual Photovoltaic (‘PV’)
panels and Tesla batteries, replaced the previous
gas-powered system, with some occupiers now
able to sell surplus energy back to the grid. It is
estimated that across the 13 units over 440,000
kWh will be generated, saving 100 tonnes of
CO
2
e per year. Additionally, the project addressed
biodiversity with the introduction of bird and bat
boxes, native trees and wildflower meadows. The
result is a site with net zero operational emissions,
which has transformed an outdated, inefficient
site into one of the best industrial assets in the
area. The finished product is unrecognisable
from the estate originally purchased, a significant
regeneration story on every measure.
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Annual report and accounts 2023
Environmental Case studies 2023
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
United Arab Emirates
Savills Dubai were thrilled to participate in a
mangrove planting event in October in Ajman.
This initiative was part of the ‘Today for Tomorrow
– Mangrove Project’, a United Arab Emirates
Government project, designed by Companies for
Good and activated by Quest for Adventure UAE.
Savills was part of a larger group which together
planted 42 mangroves while volunteering.
Savills Spain
In Spain, to support Climate Change Day, Savills
teams organised tree-planting, with the objective of
regenerating a native forest in an area of grassland.
53 volunteers, including Spain’s CEO & COO
collaborated to plant 200 native trees and shrubs.
The species used, in addition to being appropriate
to the environmental conditions of the space, once
grown, will provide new shelter and edible fruits or
nectar for bees and other insects.
RESPONSIBLE BUSINESS continued
Governance
Our commitment to
acting honestly, with
integrity, and always
with clients’ best
interests at heart,
is fundamental to
everything we do.”
64
Annual report and accounts 2023
Our reputation has been built on our people and we
believe that employees whose behaviours reflect our
business philosophy deliver the excellent client service
that we strive to provide. Our business philosophy also
captures our commitment to ethical, professional and
responsible conduct and our entrepreneurial, value-
enhancing approach.
Savills has a zero tolerance approach to bribery and all
other forms of corruption. Our Code of Conduct sets out
our commitment to operate responsibly wherever we
work in the world, to work professionally, fairly and with
integrity and to engage with our stakeholders to manage
the social, environmental and ethical impact of our
activities in the different markets in which we operate.
We empower and support our employees to always
make the right decisions consistent with this policy. Our
corporate conduct is based on our commitment to act
responsibly at all times. We will uphold laws relevant to
countering bribery and corruption in all the jurisdictions
in which we operate.
To facilitate the Savills Board’s assessment and
monitoring of culture, the Board adopted KPIs, set out
on page 95 of the Governance Report.
Our approach to human rights
Savills is committed to conducting its business ethically
and in line with all relevant legislation including human
rights laws. We fully support the principles of UN Global
Compact, the UN Declaration of Human Rights and
the International Labour Organization’s (‘ILO’) Core
Conventions. Any breaches of our Code of Conduct
may be reported in accordance with the Group’s Speak-
upprocedure.
Modern slavery
We believe the risk of slavery or human trafficking in
therecruitment and engagement of our employees is
low. To ensure it remains low, we have provided training
on modern slavery and taken steps to make sure our
staff and supply chain partners are aware of the Act
and its requirements. We published our latest Modern
Slavery and Human Trafficking Statement which can be
found at https://www.savills.co.uk/footer/slavery-and-
human-trafficking-statement.aspx setting out the steps
we have taken in the past year to ensure our suppliers
and their supply chains adopt similar standards to Savills
to prevent slavery and human trafficking taking place in
oursupply chain.
Speak-up
Savills Group is committed to maintaining the highest
ethical standards and a culture of openness, integrity and
accountability in all its business dealings and practices.
Savills takes any malpractice (i.e. fraud, bribery, illegal
or unethical conduct or wrongdoing) very seriously. Our
people should be encouraged to raise any concerns they
may have about the conduct of others in the business
or the way the business is run at an early stage and in
an appropriate way. Our Speak-up policy, in relation to
which we now have third-party-managed confidential
reporting facilities in all markets, enables employees to
raise any matters of concern, anonymously if they so
wish, and is embedded into our business; it applies to
employees and supply chain partners of the Group’s
businesses worldwide.
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Our Chosen SDGs
We are committed to operating
responsibly and providing fair, safe
and diverse workplaces.
What we did in 2023
Savills Group: This year Savills efforts towards
providing fair, safe and diverse workplaces were
recognised by a host of external awards:
Savills UK win EDI (Equality, Diversity, and
Inclusion) Programme of the Year at Inspiring
Women in Property Awards hosted by
PropertyWeek
Bisnow’s UK Rise Initiative recognised Savills
UK as one of the companies leading the charge
to improve diversity in real estate
Savills North America placed 21st in Newsweek
Excellence1000 Index, identified as an
example of corporate success and responsibility
UK win Apprenticeship Employer of the Year at
the Personnel Today Awards, came 1st place in
the Times Rate My Placement for Apprentices
up from 8th place and listed in the Top 100
Apprenticeship Employers of 2022 – 2023.
Our goal is to provide healthy
workplaces, encourage healthy lifestyles
and raise awareness of mental health
and wellbeing.
What we did in 2023
Savills Germany: To raise awareness on mental
health and mindfulness issues, Savills Germany ran a
month-long campaign this year. This kicked off with
a newsletter explaining the initiative, followed by
two workshops run for our teams in Germany during
work hours. Additional information and exercises
to use remotely had a good uptake and, following
positive feedback, the local teams are now looking
into doing a similar event, annually.
The Group’s ESG strategy aims to achieve a
positive impact on the environment and society,
while maintaining robust governance measures
and is aligned with nine of the 17 UN Sustainable
Development Goals (‘SDGs’).
We adopted these nine SDGs as these are most
relevant to the real estate sector and our business
and have agreed the underlying objectives to support
our delivery against these in our Principal Businesses.
Here are specific examples of initiatives in place across
our businesses during 2023 in relation to each of
the nine SDGs.
We aim to minimise carbon emissions
and work continuously towards net zero
carbon targets globally.
What we did in 2023
Savills Group: Savills have worked to in increase their
coverage of more efficient LED lighting within our
occupied leased offices locations this year. Greater
coverage of CEME offices now have full LED equating
to 80% of occupied floor area, increased from 2022.
Meanwhile, Hong Kong has offices in 9 out of 12
countries which are now close to 100% LED lighting.
Others are on the way to a managed transition,
replacing with LED as old lighting requires replacement
for example, Malaysia and Thailand have had a focus
on replacing old fluorescent light tubes with LED as
they wear out. Meanwhile for North America 87% of
total office space occupied by Savills is now located
inaccredited, energy efficient buildings.
GOOD HEALTH & WELL-BEING
DECENT WORK AND ECONOMIC GROWTH
CLIMATE ACTION
We aim to maximise energy efficiency,
and switch to using renewable energy
across our workspaces.
What we did in 2023
Savills UK: Some key actions our UK teams have
taken to reduce Scope 1 and 2 carbon emissions in
2023 included:
Roll-out of smart meters across our rented office
portfolio, to allow more accurate monitoring of
energy consumption, installing 41 half-hourly
Automatic Meter Read (‘AMR’)meters
All offices were benchmarked based on energy
consumption and energy audits were carried out
at the six highest consuming sites
Continuing to transition to a more energy-
efficient computer set-up of laptops and one
screen, replacing two screens and increasing the
set-point temperature in server rooms to 21
o
C
Continued to reuse as much equipment and
furniture as possible in office fit-outs, donating
office furniture to charity as part of the fit-out
process, including around £12,000 of furniture
donated to schools.
AFFORDABLE & CLEAN ENERGY
66
Annual report and accounts 2023
We seek to reduce our
environmentalimpacts through
active operational management and
responsible procurement.
What we did in 2023
Savills Group: Progress on obtaining certified
renewable energy tariffs has been made within 2023.
For the UK offices green tariffs now account for 88%,
increased from 83% in 2022, with green gas tariffs
covering 91%. In CEME, 12 of 38 offices now have
green tariffs, an additional two over 2022. For North
America, our Chicago office started a green energy
pilot and plans are in place for the New York HQ
to be 100% green energy backed by RECs in 2024,
with 25% already being sourced from green energy.
The Savills IM business has also increased renewable
energy use, which is now a source to some extent at
the Paris, Frankfurt, Hamburg, Munich, Milan, Warsaw
and Stockholm offices. There is still much work to do
on this agenda in Asia, where green tariffs are generally
unavailable across those markets. Some green tariffs
are being used in Australia and we are working with
the landlord to allow the recognition of these.
We work with government, national
and local communities to create
sustainable places.
What we did in 2023
Savills Investment Management UK: In 2019,
Savills Investment Management acquired the
Cathedral Hill estate, a 94,000ft² industrial site.
Instead of a complete rebuild, the focus was on
utilising the existing structure to reduce overall
carbon emissions and create a leading industrial
investment. Key goals included elevating EPC
ratings, obtaining a BREEAM Excellent certification,
transitioning to renewable energy, and modernising
travel facilities. Situated in Guildford, Surrey, the
transformed Cathedral Hill now boasts occupant-
focused upgrades, including increased natural light,
enhanced air quality and improved office facilities.
Renewable energy integration, through individual
Photovoltaic (‘PV’) panels and Tesla batteries,
replaced the previous gas-powered system, with
some occupiers now able to sell surplus energy
back to the grid. It is estimated that over 440,000
kWh will be generated, saving 100 tonnes of
CO
2
e per year. Additionally, the project addressed
biodiversity with the introduction of bird and bat
boxes, native trees and wildflower meadows.
We actively promote gender equality
and aim to create a diverse and
inclusive environment for all.
What we did in 2023
Savills Investment Management: This year, Savills
IM’sGender Committee sponsored partner charity,
TheCycle, who are dedicated to addressing gender
equality by providing safe water, sanitation, hygiene
services, and menstrual education programmes
to deprived primary schools in India. The Cycle’s
remarkable efforts have already supported over
75,000 people. In December over 100 employees,
collaboratively organised a ‘Big Buffet’ event to
support The Cycle. The event generated a warm
and festive atmosphere for colleagues to share the
Christmas spirit through an assortment of home-
baked goods. The event also served as a platform
for individuals to bring in dishes from their cultural
backgrounds, highlighting the richness of our
office’sdiversity. Over £5,300 was raised through
donations to ‘fill a plate’.
We aim to create opportunities
for growth and development for our
people and within the communities
that we impact.
What we did in 2023
Savills Vietnam: Since 2017, Savills Vietnam has
supported 59 underprivileged students to stay in
tertiary education. The ‘Students for a Better Future’
programme supports disadvantaged children
and young adults in Vietnam to reach their full
potential through quality education, training, and job
opportunities. In 2023, Savills supported 39 students;
of the six graduates, four have now gained successful
employment. Savills Vietnam also donated 25
computer monitors and 105 laptops to this cause.
We expect our suppliers to operate
responsibly and seek to protect
biodiversity and ecosystems.
What we did in 2023
Savills Spain: To support Climate Change Day,
Savills teams in Spain organised a tree-planting activity
with the objective of regenerating the native forest.
53 volunteers collaborated to plant 200 native trees
and shrubs. The species used, in addition to being
appropriate to the environmental conditions of the
space, will provide new shelter and edible fruits or
nectar for bees and other insects.
GENDER EQUALITYQUALITY EDUCATION
LIFE ON LAND
SUSTAINABLE CITIES ANDCOMMUNITIES
RESPONSIBLE CONSUMPTION AND PRODUCTION
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Greenhouse gas emissions
Our greenhouse gas (‘GHG’) emissions statement
includes all emission sources required under the
Companies Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013 and the Companies (Directors’
Report) Regulations 2018 for the financial year to
31December 2023.
Reporting methodology
We report our GHG emissions using the revised edition of
the GHG Protocol Corporate Accounting and Reporting
Standard, the GHG Protocol Scope 2 Guidance, the GHG
Protocol Corporate Value Chain (Scope 3) Standard and
the UK Government Guidance on Streamlined Energy
and Carbon Reporting (‘SECR’). Our reporting boundary
is based on an operational control approach and includes
emissions from Savills plc and Group subsidiaries with a
majority shareholding.
Where actual data becomes available or there are
betterproxy data available for more accurate estimation,
we restate individual data point of the previous year at
a threshold of 20% difference, i.e. we shall not restate
previously reported data if the difference between
reported data and actual data is less than 20%. We
will also restate the emissions if the cumulative effect
of the differences is more than 5% difference to the
Scope affected. We might also restate data as a result
of acquisition or disposal of sites/subsidiaries during
the reporting year, subject to the specific condition
of the acquisition or disposal. Where an acquisition or
divestment is material, with the inclusion or removal
of the entity’s data results in a variation that exceeds
± 5% of the original, historical data will be restated
whereattainable.
Scope 1 and 2 emissions
Reported Scope 1 emissions includes emissions from
fuelconsumption by the Group’s owned and leased
vehicles and the combustion of fuels within our offices.
Scope 2 emissions are reported using both ‘market-
based’ and ‘location-based’ methodologies and relate
to the consumption of purchased electricity, heat,
steam and cooling in Savills offices where Savills
has operational control. Savills has a network of
representatives and associates in over 700 locations
globally. Out of the 700 locations, 281 fall under the
reporting Scope as Savills has operational control i.e.
authority to introduce and implement our operating
policies. The majority of other offices, over 400, are
associates that are not consolidated into the Group
accounts and are outside the organisational boundary.
Some remaining offices are serviced offices and
therefore outside the operationalboundary.
Scope 1 and Scope 2 ‘location-based’ emissions were
calculated using regional or national emission factors
published by the United Nations Statistics Division, the
UK Government GHG Conversion Factors for Company
Reporting, the US Environmental Protection Agency, the
Australian Department of the Environment & Energy and
other national agencies and internationally recognised
guidelines for each reporting period. Under the Scope
2 ‘market-based’ method, no emissions were accounted
for electricity supplies backed with local Renewable
Energy Certificates (‘RECs’), such as Renewable Energy
Guarantees of Origin (‘REGO’) in the UK and the EU. This
GHG accounting principle follows the Scope 2 Quality
Criteria set out by the GHG Protocol Scope 2 Guidance.
Scope 2 ‘market-based’ emissions from energy use
with no RECs in place were calculated using regional or
national residual mix emission factors.
To coordinate the collection of GHG emissions data
across our global operations, a network of Environmental
Reporting Officers (‘EROs’) and data entry users has
been established within Savills, reporting datasets to the
Group Sustainability Reporting Manager on a biannual
basis. A third-party environmental reporting tool was used
to facilitate data collection, aggregation and the data
quality review. GHG emissions data was collated using
actual activity data wherever possible. In some instances,
where actual activity data was not readily available, we
calculated our operational emissions using a range of
standard carbon accounting methods in an estimation
hierarchy. 21% of reported emissions were based on
estimates using this method. For sites where there is
partial data for the time period, the data is extrapolated
based on the time period with no data. For sites where
there is no current data, historic data from the previous
year is used to extrapolate the relevant time period. If sites
have no current or historic actual data we use benchmarks
based on energy consumption per square metre of
floor area relative to the rest of the region. Historically,
for North America, it was challenging to collect actual
data, therefore we used benchmarks based on energy
spend per square metre of floor area (sourced from the
Building Owners and Managers Association) which were
then converted to energy consumption. In 2023 we have
successfully collected actual data from most sites in North
America and only use this method for the remaining few.
In addition to absolute GHG emissions metrics, we
report two standardised intensity metrics that enable
comparisons of our regional performance and year-on-
year results. These are Scope 1 and 2 ‘market-based’
emissions per £ million of revenue and Scope 1 and 2
‘location-based’ emissions intensity of our offices per
square metre floor area. The floor area GHG intensity
ratio excludes emissions from fuel consumption of our
business fleet to enable direct comparison of operational
energy efficiency of our premises.
Our Disclosures
68
Annual report and accounts 2023
Scope 3 emissions
In 2023, we undertook our third assessment of the
Group’s Scope 3 emissions. The first year assessment
adopted a staged approach reflecting the scale of the
project. This assessment first analysed the upstream
emissions associated with our operations in the United
Kingdom and North America, and was then scaled-up
to provide an estimate of the Scope 3 emissions for all
regions in which we operate. In 2022, we expanded the
scope of the data collection process to cover all regions
in which we operate and Savills IM’s discretionary Assets
Under Management. This year we have followed the
same methodology as in 2022, which now provides a
dataset that is comparable to the previous year.
Reported Scope 3 upstream emissions include purchased
goods and services, capital goods, waste generated
in operations, water consumption, business travel in
vehicles not owned, leased or controlled by the Group,
employee commuting and fuel and energy-related
emissions that are not captured in Scopes 1 and 2.
Purchased goods and services include all expenditure on
services (for example cleaning, insurance, IT, professional
services) and consumable products or goods (for
example food and stationery). Capital expenditure
includes all expenditure on durable products or goods
that were acquired within the Group’s 2023 financial
year (for example office furniture). The methodology
used to estimate the supply-chain emissions from
purchased goods and services and capital goods is
based on the Exiobase
1
environmentally extended
input-output (‘EEIO’) dataset. EEIO combines economic
information about the trade between industrial sectors
with environmental information and the emissions arising
directly from thosesectors.
Financial expenditure data was collected across all
regions. In some cases, where data only covers 10
months of the year, estimates were used to extrapolate
this to 12 months. Business travel data quality and
availability varies across the business. Business travel
emissions were calculated based on actual activity data,
where possible. Where activity data was not available,
expenditure data was used and business travel emissions
were calculated using the Exiobase model.
During 2022, we rolled out surveys to assess employee
commuting activity across all countries where Savills
has operations. We had responses from over 5,000
employees and calculated commuting emissions using
the UK Government GHG Conversion Factors for
Company Reporting and US EPA emissions factors.
Thisdata has been combined with current employee
numbers and emissions factors to update the results for
2023. We plan to repeat the commuting survey every
few years, to see if travel habits have materially changed.
Waste, water, fuel and energy-related emissions are
collected using the same data collection process that is
used for Scopes 1 and 2, as described above.
Reported Scope 3 downstream emissions relate to Savills
IM Assets under Management (‘AUM’) and cover all funds
and mandates where Savills IM exercises discretionary
control
2
and had sufficient information to calculate
this. While Savills IM has discretionary control, it is
important to note that a significant number of the asset
leases are of a ‘full repairing and insuring’ nature, which
presents a challenge when it comes to data collection
and opportunities for energy reduction interventions.
Savills IM emissions for both 2022 and 2023 were
estimated based on the actual energy use data for
the previous year (2021 and 2022 respectively) where
feasible. Where data was found to be incomplete for a
specific utility for a particular building area (e.g. landlord-
controlled or tenant-controlled areas), the actual data
was extrapolated to provide full coverage. For assets
where no actual consumption data was available, energy
use and the associated GHG emissions were estimated
based on industry benchmarks
3
. For assets where there
was insufficient information to enable benchmarking,
a strategy has been implemented to ensure that
benchmarking is possible for the next reporting year.
Savills IM has set an objective of collecting 75% of actual
data from AUM by 2025 and is working with property
and asset managers, tenants and ESG consultants to
achieve this data coverage.
Going forward, we plan to further refine our Scope 3
analysis by implementing a strategy to improve data
collection processes across our global operations. This
will be focused on providing activity data particularly
for business travel, improving the efficiency of data-
collection processes through systemisation and reducing
the need for extrapolation where possible.
1. EXIOBASE3 is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. It is attributed to the EXIOBASE Consortium and can be
found at www.exiobase.eu.
2. Discretionary fund is defined as one where Savills IM holds decision-making and fiduciary responsibilities regarding which assets to buy and sell, in addition to
asset management activities such as development, fit-out, refurbishment and leasehold transactions. In some jurisdictions a Discretionary Fund is a fund where
Savills IM has launched the fund and has control over the fund strategy. This definition extends to a small number of segregated mandates where the client
maintains discretion over their portfolio strategy. For more information on scope please refer to Savills IM’s Responsible Investment Policy.
3. Benchmarks used include the Chartered Institution of Building Services Engineers (‘CIBSE’)’s Energy Benchmarking Tool for the UK, the EU Buildings Database,
comprehensive IP benchmark database of our consultant, EVORA, and the GRESB Real Estate Assessment.
69
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Performance and trends
In 2023, our absolute Scope 1 and 2 ‘market-based’
emissions totalled 5,947 tonnes CO
2
e, which is a 26.9%
(2,187 tonnes CO
2
e) reduction against our 2019 base
year. When assessed on an annual basis, we have seen
an 11% reduction in the Group’s Scope 1 and 2 emissions,
associated with a 6% decrease in electricity consumption
and an increase in uptake of green tariffs. The Group
used 23,861 MWh of energy, a 1% decrease on last year,
comprised of a 12% increase in fuel use and the 6%
decrease in electricity consumption.
There has been a 20% increase in Scope 1 emissions
associated with business travel from Company-owned
and leased vehicles. This is mainly driven by increased
travel in Europe and improved data capture. To reduce
these emissions, the Group will continue to switch
Company-owned and leased cars to electric vehicles
orhybrid alternatives.
On an intensity basis, our Scope 1 and 2 ‘location-based’
GHG emissions per office floor space has reduced by
13.8% year-on-year and 29.0% since 2019. Our GHG
financial intensity metric, expressed as GHG emissions
per £million revenue, has seen a reduction of 8.6%
and 37.5% respectively. These metrics reflect continual
improvement in managing our environmental impacts
and associated carbon emissions through office retrofits,
fleet upgrades, behavioural changes, and procurement
of renewable electricity.
Key measures implemented and underway to reduce
our Scope 1 and 2 GHG emissions include: LED lighting
replacements, energy audits, promoting behavioural
changes to eliminate energy wastage, procurement of
renewable electricity and replacement of our owned and
leased vehicles with zero or low-emission alternatives.
For specific examples of this go to ‘Our Net Zero
Targets’ section (page 41). In 2023, we also worked to
formalise costed Net Zero Transition Plans for each of
thePrincipal Businesses to guide efforts towards long-
term decarbonisation.
In 2023, as in 2022, actual or estimated Scope 1 and 2
emissions data was reported for all offices where we
have operational control. Reported energy and GHG
emissions data include estimates where actual data
was unavailable. Due to a significant effort this year
to engage with landlords to collect actual data, the
proportion of estimated data has decreased by 14%
when compared to 2022, it remains a key priority to
strive for improved data accuracy.
The 2023 Scope 3 emissions totalled 238,083 tonnes
CO
2
e, including our upstream emissions from business
operations and the downstream AUM emissions where
Savills IM exercises discretionary control. These AUM
emissions were 133,421 tonnes CO
2
e which contributed
56% of Scope 3 emissions reflecting an increase of
12.5% on 2022. The increase is principally attributed to
significant growth in this discretionary AUM reflecting
asset acquisitions.
Our upstream Scope 3 emissions totalled to 104,662
tonnes CO
2
e, an uplift of 6.3% since 2022 reflecting
the significant improvement in data collection and the
accuracy of the determining Scope 3 emissions in 2023.
The increase in upstream emissions is mainly related
to business travel emissions across the UK and CEME
businesses. The factors affecting this are a combination
of improved travel data collection and increases in
journeys for business purposes.
Our Disclosures continued
70
Annual report and accounts 2023
Corporate GHG Emissions, tonnes CO
2
e 2023 2022 2021 2020 2019 change vs 2019
Scope 1 (Direct) 1,907^ 1,691 1,869 1,794 1,775 7.4%
Scope 2 (Indirect, market-based) 4,040^ 4,989 4,783 5,386 6,358 -36.5%
Total Scope 1 and 2
1
5,947 6,679 6,652 7,180 8,133 -26.9%
Scope 2 (Indirect, location-based) 5,055^ 5,462 5,280 5,847 6,719 -24.8%
GHG financial intensity ratio
(tonnes CO
2
e / £ million revenue) 2.66 2.91 3.10 4.13 4.25 -37.5%
GHG intensity ratio of our offices
(tonnes CO
2
e / sq m.)
2
0.034 0.039 0.040 0.042 0.048 29.0%
2023 2022 2021 2020 2019 change vs 2022
Scope 3 upstream, estimate
3
104,662 98,469
4
55,223 nr nr 6.3%
Scope 3 downstream, estimate
3
133,421 118,544 nr nr nr 12.5%
Total Scope 3 238,083 217,013 55,223 nr nr 9.7%
Grand Total 244,030 223,692 61,875 nr nr 9.1%
Corporate Energy Use, MWh 2023 2022 2021 2020 2019 change vs 2019
Total energy use 23,861^ 24,006 22,864 24,568 25,938 -8.0%
Data coverage (offices reporting data) 281 276 279 285 282
(100%) (100%) (100%) (100%) (92%) nr
Notes:
1. Total Scope 1 and 2 emissions and GHG financial intensity ratio are calculated using the market-based Scope 2 emissions.
2. GHG intensity ratio of our offices is calculated using the location-based Scope 2 emissions.
3. This disclosure is partial; as we continue to work to improve our understanding of our Scope 3, our final figures are expected to be higher. With exception of Savills
IM AUM, downstream emissions covering carbon relating to client services are excluded.
4. The Scope 3 upstream emissions from 2022 have been restated according to the restatement policy. Reviewing the methodology used resulted in improvements
to the procurement data and the addition of WTT emissions for commuting.
^ We engaged Grant Thornton UK LLP to provide independent limited assurance over selected data highlighted in the above table with a ^ symbol using the
assurance standards ISAE 3000 (Revised) and ISAE 3410. Grant Thornton has issued an unqualified opinion over the selected data and the full assurance report
can be found on our website here (https://www.savills.com/why-savills/grant-thornton-limited-assurance-report-2023.pdf).
71
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
RESPONSIBLE BUSINESS continued
Scope 3 2023 Performance by category
5
GHG Emissions Category
tonnes
CO
2
e %
Purchased goods and services 51,918 22%
Capital goods 3,932 2%
Fuel and energy related activities (not included in Scope 1 & 2) 2,181 1%
Waste generated in operations 386 0%
Business travel 10,127 4%
Employee commuting 36,118 15%
Savills IM Assets Under Management 133,421 56%
Total 238,083
5
100%
5. This disclosure is partial, as we continue to work to improve our understanding of our Scope 3, our final figures are expected to be higher. With exception of Savills
IM AUM, downstream emissions covering carbon relating to client services are excluded.
2023 Performance by Region
Energy use
GHG emissions
Scope 1 and 2
GHG emissions
Scope 3
Region MWh %
Intensity
ratio, tonnes
CO
2
e / m
2
tonnes
CO
2
e %
tonnes
CO
2
e %
Asia Pacific 4,463 19% 0.035 2,020 34% 45,889 19%
Europe, the Middle East & Africa 8,184 34% 0.036 2,093 35% 16,836 7%
North America 3,244 14% 0.034 1,045 17% 6,881 3%
United Kingdom 6,664 28% 0.029 630 11% 32,415 14%
Savills IM 1,306 5% 0.060 159 3% 136,062 57%
Total 23,861 100% 0.034 5,947 100% 238,083 100%
Our Disclosures continued
72
Annual report and accounts 2023
Non-financial and sustainability information statement 2023
The table below sets out where stakeholders can find information in our Strategic report that relates to non-financial
matters detailed under section 414CB of the Companies Act 2006.
Reporting
requirement Relevant Policies and standards
Read more about our impact, including the
principal risks relating to these matters Page
Environmental
matters
Environmental Policy GHG Emissions
TCFD reporting
Principal and emerging risks and
uncertainties facing the business
68 to 72
73 to 80
30 to 36
Employees Health and Safety Policy
Equality and Diversity Policy
Code of Conduct
Whistleblowing Policy
Group Chief Executive Review – People
Business Model
‘People’ section of Responsible Business
‘Culture’ section of Responsible Business
‘People and culture’ Principal Risk in
the Principal and Emerging Risks and
Uncertainties
s.172 (1) Companies Act statement – People
Corporate Governance Report
Directors’ Remuneration Report
20 to 26
10 and 11
48 to 54
65
30 to 36
99
81 to 126
127 to 150
Human rights Code of Conduct
Modern Slavery Statement
‘Culture’ section of Responsible Business 65
Social matters Code of Conduct
Modern Slavery Statement
Tax Strategy
ResponsibleBusiness 38 to 73
Financial crime
(anti-money
laundering,
anti-bribery
and corruption
and compliance
with financial
sanctions)
Code of Conduct
Whistleblowing Policy
Anti-Bribery and Corruption Policy
Culture section of Responsible Business
Corporate Governance Report
65
81 to 126
Outcome of non-
financial policies
and standards
Carbon emissions reporting
Gender Diversity reporting in accordance
with the Corporate Governance Code 2018
ResponsibleBusiness
Corporate Governance Report
68 to 72
114
Principal Risks Principal and emerging risks and
uncertainties facing the business
30 to 36
Business model ‘Our business model’ section of the
Strategic Report
10 and 11
Due diligence
processes
in place in
pursuance of
promoting non-
financial policies
and standards
All employees required to read and adhere
to the Code of Conduct
Whistleblowing reports reviewed by
theBoard
Anti-corruption, anti-bribery and anti-
financial sanctions training and monitoring
65
73
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (‘TCFD’)
Focusing on climate-related risks to deliver
amore sustainable future
Real estate and associated infrastructure are responsible
for close to 40% of global carbon dioxide emissions
and the global building floor area is expected to double
by 2060. Savills is focused on climate-related risks
and working with its clients, suppliers and the local
communities on which its operations impact, to deliver
a more sustainable future. Savills recognises the need
for urgent action by real estate owners and occupiers
to address the climate crisis and rapidly transition to a
greener, more resilient economy. This TCFD Disclosure
outlines the climate-related risks and opportunities that
Savills has identified and the associated actions and
budgets in place to address these.
In this section we provide climate-related financial
disclosures consistent with TCFD guidance. By this
we mean the four TCFD recommendations and the 11
recommended disclosures set out in Figure 4 of Section
C of the report entitled ‘Recommendations of the Task
Force on Climate-related Financial Disclosures’ published
in June 2017 by the TCFD. We have also referenced the
recommendations in “Task Force on Climate-related
Financial Disclosures, Implementing the Recommendations
of the Task Force on Climate-related Financial Disclosures,
October 2021”. A longer TCFD document, which
goes beyond the formal annual disclosures, has also
been provided (https://www.savills.com/why-savills/
tcfd-report-2023.pdf), which includes supplementary
detail anda table outlining the TCFD consistency and
improvement points within our 2023 Report.
Governance
The Board is responsible overall for managing climate-
related risks and realising opportunities, as detailed in the
Governance section (page 81). The Board is supported in
this respect by the Group Executive Board (‘GEB’), which
is responsible for implementing climate-related risk
management plans, addressing climate-related threats to
Savills business model and for identifying and realising
opportunities. In addition, the Group Risk Committee
and Group Environmental Social & Governance (‘ESG’)
Committee are responsible for overseeing climate risk
assessment and other aspects of Savills corporate
sustainability and ESG agenda and reporting into the
GEB. The Board and GEB both meet at least quarterly.
The Group ESG Committee meets at least bi-annually
and the Savills TCFD Working Group meets at least
annually. The Board is updated on progress against goals
and targets regularly, and at least annually considers the
progress made against our goals.
The Board and Board committees are informed about
climate-related issues, including both climate risks and
opportunities, via written reports and oral updates
along with formal presentations from the Group
Legal Director& Company Secretary and the Group
Sustainability Director.
Both the Group Legal Director & Company Secretary
and the Group Sustainability Director have climate-
related actions within their KPIs, as do GEB members,
including the Group CEO. Climate-related issues,
including associated risks and opportunities, are also
considered when the Board is reviewing strategy,
budgets, major plans of action, proposed investments,
capital expenditure and acquisitions. Climate issues are
considered as part of and new and existing office space
lease agreements and Savills are working to incorporate
this into the acquisitions process. An example of how
this is embedded in decision-making is that sustainability
and ESG, specifically climate risks and opportunities,
are discussed within Board meetings and as part of the
wider risk review process by Group Risk Committee, from
which management decisions are often determined.
The Savills TCFD Working Group and Group ESG
Committee report into the GEB and through it to the
Board and, as part of this reporting, highlight climate
related items and associated actions (page 31). The
process by which Group management is informed about
climate-related issues is through the ESG Committees
in each Principal Business, which either have TCFD as a
key agenda item or which have their own TCFD working
groups. ESG Groups in the Group’s Principal Businesses
(in UK, CEME, Asia Pacific, North America Savills
Investment Management (‘Savills IM’)) were established
to develop and manage programmes in those businesses
within the Group’s overall TCFD framework. The process
employed by each Principal Business to manage physical
and transition risk is typically for the management
teams within the relevant business to oversee any
corresponding action or agenda points made within
the relevant ESG Committee or via designated TCFD
action trackers. Key climate-related actions and risks are
monitored and managed through these ESG Committees
which respectively report to the Group ESG Committee
and the Savills TCFD Working Group, with key messages
then further disseminated to management across
the Group as appropriate. The Heads of the Principal
Businesses have overall climate-related responsibilities
for their businesses; with progress by Principal Business
against agreed targets monitored and overseen by the
Group ESG Committee, which reports viathe Group Legal
Director & Company Secretary, to
the GEB and the Board.
Savills TCFD Working Group was supported by Willis
Towers Watson (‘WTW’), who assisted each Principal
Business to effectively assess climate-related risk during
2021, following which each Principal Business was able to
develop further its action plans to address climate risks
and realise opportunities specific to it.
74
Annual report and accounts 2023
Strategy and Risk Management
Interface between climate-related risks and
overall risk management
For each Principal Business, climate-risk management
plans have been developed to establish mitigation and
adaptation measures to manage the most material
climate-related risks. Savills Group processes for
managing climate-related risks are outlined in the
Governance section above, and are also aligned to
Savills wider risk management approach and enterprise
risk management system (‘ERM’) (page 30). For
more information on the Group’s material existing
and emerging risks see Principal and emerging risks
section(page 33).
The materiality assessment was based on an integrated
view of the impact and likelihood of occurrence for each
risk and opportunity. Climate-related risks continue to
be evaluated as part of the Savills Group six-monthly
risk identification, review and assessment process for
emerging and principal risks conducted by the Group
Risk Committee (page 30). The TCFD materiality process
is also integrated within the wider risk management
processes; the Group’s Risk Register has a high-level
summary risk covering ‘Environment and Sustainability’
with further details on climate-related issues managed
within specific TCFD risk documentation. Climate-related
risks and opportunities are integrated into current
decision-making and strategy formulation, for example,
in creating and reviewing strategies for lower-carbon,
more energy-efficient operations. Further examples of
Savills initiatives to improve the energy efficiency of our
operations are in ‘Environment – Our Strategy in Action’
section (page 41).
The Savills TCFD Working Group, responsible for
overseeing the climate scenario risk assessment, includes
the Group Risk Director and the Group Sustainability
Director within its membership. The climate risk
assessment adopts other elements used in the broader
Savills risk assessment categories including:
description of the risk and time horizon
(identification)
impact-likelihood rating (the evaluation
enablingprioritisation)
mitigating actions and controls (mitigation)
future action plans & risk owner (monitoring).
As part of this process, each risk is given an inherent and
residual risk score and a ‘go-forward mitigation plan’ is
developed, which is then cascaded down and managed
accordingly by the relevant business or teams. The
results are integrated into ERM reporting and ongoing
identification, assessment and management of climate-
related risks.
As the 2021 assessment considered future scenarios
with long timescales, the intention is for a full review,
similar to this, to be undertaken every three years. In the
intervening period the risks and opportunities identified
are considered each year by the Savills TCFD Working
Group, with any required updates included in the latest
annual TCFD report. In relation to 2023, the Savills
TCFD Working Group concluded that no significant
updates were required to the overarching Group risks
and opportunities, however, the actions relating to
each of the items identified and relative progress made
against these was reviewed. A bottom-up comprehensive
assessment of the existing climate-related risks and
opportunities identified will be undertaken via workshops
with the Principal Businesses in 2024.
Scenario analysis
In order to explore the business risks and opportunities,
in 2021, Savills, with the support of WTW, undertook
climate scenario analysis against two scenarios. The two
scenarios have average temperature rises of 2°C and 4°C
respectively, and identified physical and transition risks
together with the time horizon in which they are most
likely to occur and the potential financial impact on Savills
strategy. The time horizons selected defined ‘short-term’
as the next one to five years, ‘medium-term’ as five to
ten years and ‘long-term’ as ten years or more. The
timelines were chosen to reflect Savills business planning.
Group materiality incorporates a combined view of the
considered impacts across the Principal Businesses.
Below 2°C scenario (< 2°C)
The scenario is based on The Paris Agreement to
which more than 190 countries committed, to limit
global warming to well below 2°C above pre-industrial
temperatures and to pursue efforts to limit it to no more
than 1.5°C. The scenario assumes climate policies are
introduced early and become gradually more stringent
across the globe. There is an increase in public and
private investment into green technologies and the
share of renewables by 2030 in global electricity supply
increases to approximately 50%
1
shifting economies from
being fossil fuel dependent to renewable energy driven.
More stringent government policies such as stricter
energy efficiency building codes and carbon taxes help
advanced economies achieve net zero by 2050 and the
world by 2070
2
.
The scenario assumes low growth in
material consumption and increasing consumer pressure
on businesses to drive sustainability. Those companies
which fail to transition their businesses to a low-carbon
model will be adversely impacted.
High Emissions Pathway (> 4°C)
This scenario is aligned with RCP8.5, where due to high
emissions in the atmosphere, temperature is likely to
increase by more than 4°C compared to pre-industrial
times by the year 2100. This scenario builds on the
Fossil-fuelled Development scenario of the Shared
Socio-economic Pathways. There’s an expectation that
competitive markets and developing and developed
societies continue to grow rapidly. There is an increasing
adoption of resource and energy intensive lifestyles
around the world and the push for economic and social
development is coupled with the exploitation of abundant
fossil fuels. As a result of the failure to transition, the
physical impacts of climate change become increasingly
severe. The increase in frequency and severity of flooding,
higher sea level rise and other physical hazards put
additional stress on the built environment.
1. World Energy Outlook 2020, IEA, 2020.
2. Sustainable Development Scenario, IEA, 2020.
75
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (‘TCFD’) continued
When the risks and opportunities were identified in 2021 by each region in which the Group operates, we found
commonalities between them all, therefore, Group materiality incorporates a combined view of the considered impacts
across the Principal Businesses. Assessment outcomes were then discussed within the Savills TCFD Working Group
and at a Principal Business level in order that climate-related risks or opportunities with a higher relevant risk could be
prioritised via action management.
Risk type Risk description
Time frame
of impact Potential financial impact Materiality assessment
Physical – Assessed under the High Emissions Scenario (> 4°C) 2025 2030
Acute
catastrophic
events
Increased frequency
and severity of
extreme weather
events, such as
cyclones, hurricanes,
heat waves, wildfires
and floods
Long-
term
Risk Impact:
Potential for increased property damage from
catastrophicevents deemed minimal. Climate modelling
which considers RCP8.5, conducted by WTW shows
minimal exposure across short, medium and long terms.
In relation to assets under the management of Savills IM,
some exposure, however, Savills IM is developing strategies
to mitigate the impact of these risks in relation to assets in
funds under its management.
Low Low
Opportunity Impact:
As cities become increasingly concerned about the
impacts of severe physical risk events, there is potential for
Savills to support resilient city strategic planning, which
could generate additional revenue for the business.
Chronic
gradual
changes
in weather
patterns
Longer-term shifts
in weather patterns,
which may cause
increasing frequency
of heavy rain and
wind, rising sea
levels and average
temperatures
Long-
term
Risk Impact:
Potential for increased operational and maintenance costs,
which are passed on from landlords to Savills as tenant,
relevant cost deemed minimal. Some of the assets in funds
managed by Savills IM have some exposure, however, Savills
IM is developing strategies to mitigate the impact of these
risks in relation to assets in funds under its management.
Low Low
Transition – Assessed under the Below 2°C scenario (< 2°C)
Policy and
regulation
Enhanced climate
risk disclosures
Short-
term
Risk Impact
The financial cost of compliance and disclosures is
considered to be limited.
Low Low
Introduction of
emissions caps,
carbon pricing
andoffsets
Long-
term
Risk Impact
Savills is predominantly a service provider, its overall
emissions are low in relative terms, and it intends to further
reduce its emissions through Principal Business targets.
Low Low
Opportunity Impact
Given higher carbon taxes, there will likely be increased
demand for sustainable design and performance advice
for offices, providing revenue opportunity.
Changes in building
standards; new
requirements
for property
transactions,
development and
operations
Short to
medium-
term
Risk Impact
Because Savills is already implementing actions to track,
and monitor changing regulatory standards, conduct
retrofits to increase efficiency of properties and increase
ESG knowledge across the Savills business, the risk is
assessed as ‘low’. In relation to assets held in funds managed
by Savills IM, ensuring that fund assets meet future minimum
standards may result in additional asset management costs
at fund level, however overall risks deemed low.
Low Low
Opportunity Impact
Significant opportunity for Savills Principal Businesses to
increase revenue by becoming a leading provider of ESG
consultancy and investment services to clients which will
increasingly demand it.
Summary of Risks and
Opportunitiesidentified
Materiality scoring for Savills TCFD risks and
opportunities utilised the below scoring criteria:
Event will probably occur in most circumstances,
>70% – Likely
Event should occur at some time, 20 – 70% – Possible
Event could occur at some time, but exceptional,
0 – 20% – Unlikely
The following financial scales have been used to
determine the materiality of the identified climate
risks and opportunities, which are in line with our
ERM process. Potential to impact % proportion of
financialprofit:
Low – Up to 5%
Moderate – 5 – 10%
Severe – Over 10%
76
Annual report and accounts 2023
Risk type Risk description
Time frame
of impact Potential financial impact Materiality assessment
Reputation Increased
stakeholder
concern or negative
stakeholder feedback
Short-
term
Risk Impact
Risk is assessed as low, when reflecting the mitigation
plans in place, a moderate opportunity exists.
Moderate Low
Opportunity Impact
A proactive approach to sustainability and commitment to
responsible business, such as Savills Group and Savills IM’s
net zero targets and the concentration of ESG services into
Savills Earth, should help to attract the next generation of
talent who are increasingly concerned with sustainability
issues. There is significant opportunity to become a leading
provider of ESG services to clients, if Savills can continue
to develop employee skill sets and knowledge to build its
client facing service offering.
Market
Changes
Shifts in client
preferences for
real estate services
incorporating climate
considerations
Short-
term
Risk Impact
Greater level of focus on climate related risks. If Savills
fails to respond to these shifts in client focus it could see
reduced income and market share, arising from lower
relevance in the market. However, mitigation in place
forthis.
Moderate Low
Opportunity Impact
Savills could increase its market share and revenues if it
becomes a leading provider of sustainability consultancy
services. Likely increase in demand for consultancy advice.
Markets vulnerable
to climate change
becoming less
desirable over time
Long-
term
Risk Impact
Due to the inherent diversification of Savills business this
was assessed as being likely to have minimal impact.
Low Low
Opportunity Impact
Potential to share expertise across Savills Regional
Businesses to meet new client requirements. Consequently,
this could generate additional revenue.
Specialist skills
shortages
Short-
term
Risk Impact
As Savills is proactively investing in expanding
sustainability recruitment and training across its business,
this risk is assessed as being low.
Low Low
Opportunity Impact
If Savills can attract the next generation of talent to
build on its existing resource base, it could generate
a competitive advantage and lead to increased
revenuegeneration.
Technology
Development
Substitution of
existing products or
services with lower
emissions options
Short to
medium-
term
Risk Impact
Savills will continue to incur development and capital
investment costs in relation to client-facing real-estate
technology. However, relative costs deemed low.
Moderate Low
Opportunity Impact
Developments in data collection technology could
presentSavills a moderate opportunity to increase revenue
by further strengthening the Group’s consultancy and
advisory service offering on emissions reporting and
benchmarking. There is also an opportunity for Savills
to occupy more efficient buildings, with smarter more
efficient technology, which could lead to cost reductions
on Savills own electricity spend.
77
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (‘TCFD’) continued
Evaluation of resilience
2 Degrees – Risks and opportunities
Under the well below 2°C scenario, Savills Group
strategy is assessed as being resilient to the impacts
of the transition to a low-carbon economy, with most
risks assessed as ‘low’. In particular, Savills assessed that
the opportunities presented in terms of new revenue
streams derived, for example, from the expansion of
sustainability consultancy services and efficiency gains
from technologies, outweighed the transition risks that
the Group is exposed to. The most material transition
risks and opportunities under this scenario are assessed
as being ‘moderate’ in 2025 with exposure reducing to
‘low’ by 2030 and are as follows:
1. Reputation: Increased stakeholder concern or
negative stakeholder feedback with the consequent
brand impact;
2. Market: Shifts in client preferences for real estate
services incorporating climate considerations and
a requirement for service providers to have the
necessaryexpertise; and
3. Technology: Substitution of existing products or
services with lower emissions options.
In terms of the below 2°C scenario for physical risks,
there was modelled to be relatively minimal risk,
therefore, exposure was found to be broadly consistent
with today.
4 Degrees – Risks and opportunities
Strategies would be reviewed, along with the associated
risks and opportunities should the likely climate forecasts
change to go beyond the 2°C scenario. Under the High
Emissions Pathway (>4°C) scenario, whilst extreme
weather events are forecast to increase, the physical
risk impact to Savills Group businesses is expected
to be relatively low, due to the advisory nature of
business activities, which only use leased space that
can be relocated. Savills also assessed the potential for
additional revenue opportunities under this scenario.
The higher physical risk will likely lead to climate-
change-related migration in the long-term and increased
volume of movement provides opportunities to increase
revenue in Savills consultancy and transaction advisory
businesses. In relation to Savills IM, assets held on behalf
of investors in its managed funds have some exposure
to high flood risk and moderate storm risk, and these
risks are projected to increase in the long term. To ensure
strategy resilience, Savills IM intends to invest in detailed
assessments of higher-risk assets currently held within
its managed funds, and to engage as appropriate with
flood and coastal risk management agencies to plan
future protection and consider divestment if adaptation
measures are deemed inadequate.
Savills has identified that it will further reduce
its exposure to these risks and exploit potential
opportunities through the following actions:
Remaining committed to our Group goals of net
zero for our Scope 1 and 2 carbon emissions by
2030 and for our Scope 3 emissions by 2040.
Savills are currently working with Science-Based
Targets initiative (‘SBTi’) to validate proposed
interim decarbonisation targets, with the aim of
being consistent with a no-greater-than 1.5°C
temperatureincrease;
Savills will continue to invest further in the
development of the Group’s client sustainability
offering across its regional businesses, in particular
by building out the ‘Savills Earth’ offering, our energy
and sustainability combined services, complemented
by appropriate learning and development
programmes to ensure that knowledge of climate-
related risks is embedded in all relevant teams to
support them to meet client requirements; and
Savills will also continue to invest in technology
solutions and strategic partnerships with firms
offering climate-change related services and solutions
both to better serve its clients changing demands
and to reduce its own carbonfootprint. Sometimes
this will be achieved by the acquisition of such firms.
TCFD Risk mitigation and adaptation budgets
The Savills TCFD Working Group used the workshop
findings summarised above to analyse the resilience of
Savills business model and strategy to climate change,
taking into consideration different climate-related
scenarios. In addition, consolidating the estimates
provided by the ESG Groups in the Principal Businesses,
the TCFD Working Group developed financial costing in
relation to risk mitigation for TCFD, which are outlined
below (for the avoidance of doubt excluding costs
in relation to assets managed by Savills IM under the
terms of its investment management appointments).
The assumptions applied in developing these current
costings estimates are in particular highly sensitive to
changes in regulation, energy costs, offset costs etc.
TCFD is integrated into Savills wider financial planning
processes. Any factors underpinning the risks or
opportunities which are interdependent, and could
impact on Savills Group’s ability to create value over time
and deliver its growth plans, are noted and addressed
accordingly, following the processes outlined in the TCFD
Governance section above. During 2023, several actions
relating to TCFD within each of the Principal Businesses
have been undertaken, for example, actions relating
to net zero plans and ESG learning and development
programmes for employees.
78
Annual report and accounts 2023
The below figures represent an estimated forecast costing of risk mitigation and adaptation plans included within
financial and business plans, set against estimated total Savills Group cost projections, over the ‘medium-term’ (i.e. the
period from 1 January 2024 to 31 December 2029). As the mitigation and adaptation actions include both physical and
transition risk the costs are based on a combined view considering both scenarios outlined above:
Regional area /
business
TCFD-related costs for risk
mitigation covering period
from start of 2024 up to
end2029.
Presented as % of total
costbase over the
‘mediumterm’*
TCFD-related costs for risk
mitigation covering period
from start of 2023 up to
end2029.
Presented as % of total
costbase over the
‘medium term’ Explanation of TCFD mitigation and adaptation budgets.
2023 2022
UK 0.08% 0.08% Example actions budgeted for include:
Annual increase in insurance premium, attributed to
climatechange
Increased M&E to ensure climate control within offices
Numerous actions relating to regional net zero plans, to
negate need of carbon offsetting
ESG training to staff
Transitioning company cars to EVs
Regional monitoring ofemerging regulations.
Implementation of Internal and external
communicationstrategy
Support individual office initiatives
Development of in-housetalent
APAC 0.05% 0.04%
N America 0.02% 0.00%
CEME 0.26% 0.23%
Savills IM 0.18% 0.48%****
Group Total 0.1%** 0.1% Total estimated cost is rounded and inclusive of estimated
offset costs.***
* For comparison purposes, total Group operating costs (inc. profit-related bonus & interest) was estimated covering a six-year period based on total 2023 Group
operating costs, business plan forecasts and, from 2026 onwards, assuming 5% growth year-on-year.
** Underlying budget figures were rounded and are estimated for a six-year period, therefore, subject to change over time.
*** A shadow internal price on carbon is under consideration by the Group. In the interim, for the purposes of this report the assumed cost of carbon offsets at 2030
was £150 per tonne of CO
2
e.
**** Savills IM figures have been restated, changing from 0.77% to 0.48%; this was due to an error made during the previous year’s reporting.
Estimates have also been developed for potential value
of climate-related opportunities over the ‘medium term’.
The financial figures relating to the climate-market
changes and associated opportunities over the ‘medium
term’ are subject to continuous review, and are, in
particular, highly sensitive to market developments and
are commercially sensitive. They have therefore not been
reported in detail. However, these provide significant
additional revenue opportunities, with the value of the
opportunity estimated to significantly outweigh the total
costs of mitigating climate change-related risks.
Metrics and Targets
The methodology for target setting and progress
tracking, including the metrics which are outline below,
is that targets are proposed and then progress discussed
within both the Group ESG Committee and the TCFD
Working Group, with the outcomes from this being put
forward for GEB and Board sign off, and then managed,
as required. As outlined above, the process to manage
physical and transition risk is typically for the teams
within each Principal Business to project manage any
corresponding action or agenda points made within the
relevant ESG Committees or through designated TCFD
action trackers.
Metrics used by Savills Group to assess climate-related
risks and opportunities, in line with Group strategy and
the Group risk management process, include Green
House Gas (‘GHG’) emissions for absolute Scope 1, Scope
2 and Scope 3. The GHG metrics are summarised within
the GHG reporting section of this report (pages 68 to
72). The GHG metrics are measured to check exposure
to GHG emissions and, therefore, future carbon prices,
along with the link to success against Savills Group’s net
zerotargets.
A further metric used is the estimated expenditure and
investment deployed toward climate-related risks and
opportunities; additional details are outlined above.
Monitoring TCFD-related expenditure gives an indication
of the extent to which risk mitigation has been budgeted
for and how long-term value might be affected. Savills
have improved upon this metric during the year by
adding a comparison of 2023 budgets with budgets
from the prior year.
79
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Savills has undertaken Group Net Zero Transition Plan
and costing exercises, as part of its TCFD review, with
changes in carbon price monitored globally to assist
predicting future cost implications. Savills is currently
working with Science Based Targets initiative (‘SBTi’) to
have proposed interim decarbonisation targets validated.
Once this process has been completed, Savills intend
to disclose these targets and report against them. In
addition, Savills remains committed to achieving net zero
for Scopes 1 and 2 by 2030, and Scope 3 by 2040. This is
an established target which we disclosed in our 2021 and
2022 TCFD reports.
Regional targets set to align with the UN’s Sustainable
Development Goals (‘SDGs’) will also assist with some
actions relating to the TCFD regional working groups, for
example ESG training programmes. The 9 SDGs which
Savills is aligned to and the corresponding objectives
can be found here: (https://www.savills.com/why-savills/
environmental-social-and-governance.aspx). Aligned
with the Group SDG framework, each Principal Business
has developed its own detailed SDG roadmap which
has SMART targets relating to topics such as energy
efficiency, waste management and recycling and ESG
awareness days, as examples. These are managed by
their relevant ESG Committees and are monitored twice
a year at the Group ESG Committee. Likewise each
Principal Business has a costed net zero plan which is
aligned with the framework mapped out within the wider
Group Net Zero Transition Plan.
Performance on material climate-related issues are linked
into remuneration considerations, forming part of the
KPIs which are reviewed at annual employee appraisals
and, therefore, linked to bonus allocation. This covers key
staff responsible for climate related issues, including, but
not limited to, the Group Chief Executive Officer, Group
Chief Financial Officer, Group Legal Director & Company
Secretary and the Group Sustainability Director.
This Strategic report, as set out on pages 6 to 80, has
been approved by the Board and signed on its behalfby
Mark Ridley,
Group CEO
13 March 2024
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (‘TCFD’) continued
80
Annual report and accounts 2023
GOVERNANCE OVERVIEW
Applying the Principles of the 2018 UK
Corporate Governance Code
Compliance with the UK Corporate Governance Code
The Company reported against the 2018 UK Corporate Governance Code (the ‘Code’) and the Companies
(Miscellaneous Reporting) Regulations 2018. Our Governance Report reflects these requirements as they apply
toSavills and includes cross references to relevant sections of the Strategic Report, the Directors’ Remuneration
Report and other related disclosures. A copy of the Code is available from the Financial Reporting Council’s website
at www.frc.org.uk. It is the Board’s view that for the financial year ended 31 December 2023 Savills was fully compliant
with all of the Principles and Provisions set out in the Code.
The table below details where key content on the compliance with the Code can be found in this report.
Page
1 Board leadership
and Company
purpose
This provides an overview of
the Board activities during
theyear
Board of Directors 86 to 88
Group Executive Board 89 to 91
Effective Board 92
Board attendance 93
Culture 95
Employee engagement 102
Stakeholder engagement 96
Section 172 Statement 99 to 101
2 Division of
responsibilities
Explains the roles of the Board
and its Directors
Corporate Governance Structure 104 and 105
Roles on the Board 106
3 Composition,
succession and
evaluation
This includes the Nomination &
Governance Committee Report
Board activities in 2023 108 and 109
Board composition 107
Nomination & Governance Committee Report 110 to 116
Appointments and succession planning 112 and 113
Diversity 114
Evaluation 115
4 Audit, Risks and
Internal Controls
This includes the Audit
Committee Report
Risk management and internal control 117
Audit Committee Report 118 to 126
Internal Controls and risk management 126
External Auditor 124 and 125
Principal risks and uncertainties 30 to 36
5 Remuneration Directors’ Remuneration Report 127 to 150
6 Directors’ Report 151 to 154
81
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
LEADERSHIP AND COMPANY PURPOSE
Stacey
Cartwright
Chair
Chair’s Introduction
On behalf of the Board, I am delighted to
present our Corporate Governance Report
for the year ended 31 December 2023. Itis
my first report as Chair and summarises
how the Board and our governance has
provided leadership over the year, in support
of the long-term sustainable success of the
Company, enabled by highly engaged and
motivated employees and acollaborative,
values-based and inclusive culture. In this
year’s report we describe the Group’s
compliance with the 2018 UK Corporate
Governance Code (the ‘Code’) and explain
how the Board and its Committees have
operated in 2023.”
The Board’s focus throughout 2023 has been to continue
to progress and deliver the Group’s strategic objectives,
whilst remaining agile and responsive to significant
macro-economic headwinds and opportunities.
The Board remains focused on utilising the Company’s
corporate governance framework to promote the long-
term sustainable success of the Group, embedding
stakeholder needs and consideration of broader
environmental and social matters as integral components
within the decision-making process. The Company’s
corporate governance framework remains critical to the
Group’s successfully meeting our net zero targets and
the delivery of our ESG strategy, which aims to achieve
a positive impact on the environment and society, while
maintaining robust governance measures.
The Board is committed to maintaining the highest
standards of corporate governance, which are
fundamental to the discharge of our responsibilities.
Ourrobust and effective corporate governance practices
enable the Group to deliver its strategy and create
long-term Shareholder value. Further information on
ourstrategy and business model can be found on
pages6 to 80.
Ensuring that we do the right thing in the right way
requires the right leadership and as custodian of Savills
culture the Board demands openness and transparency
to maintain an environment in which honesty, integrity
and fairness are valued and practised by our people
every day.
82
Annual report and accounts 2023
The Board’s behaviour and the values it displays set the
tone to guide our people’s behaviour, and ensure that
they live by and demonstrate the right values, which in
turn enable entrepreneurial and prudent management
to deliver long-term success for the Group and its
stakeholders. All of the Non-Executive Directors are
considered by the Board to be independent, meaning
that at least half of the Board members throughout
the year were Independent Non-Executive Directors
(excluding Nicholas Ferguson, as Chair during 2023).
Over the last few years we have brought several new
Directors onto the Board, taking steps to refresh the
Board and prepare for further succession. The Board,
together with the Nomination & Governance Committee,
has continued to monitor the composition and skills
matrix of the Board and at senior management levels
across the Group. On, 1 January 2024 I became Chair
on the retirement of Nicholas Ferguson. Since he was
appointed in May 2016, Savills has both delivered
commendable growth and successfully navigated the
challenges of both COVID and the market corrections
of the last two years. I would like to thank him for his
enormous contribution to the business.
I am pleased to report that, following an extensive
search process, supported by an independent specialist
search firm, on 13 December 2023, John Waters was
appointed to the Board as an additional Independent
Non-Executive Director. John replaced me as Chair of
the Savills Audit Committee with effect from 1 January
2024. John’s extensive experience will complement and
further enhance the wide-ranging skills and experience
of the Board and its Committees and I am delighted to
welcome him to the Board (see Nomination & Governance
Committee Report on pages 110 to 116). One further
change to Board responsibilities is the appointment of
Richard Orders to replace me as Senior Independent
Director, also with effect from 1January2024.
We remain firmly committed to having a Board that is
diverse in all respects. With support from the Nomination
and Governance Committee, we continue to monitor
requirements. The FCA’s Listing Rules now sets a board
diversity target stating that at least 40% of a board are
women, at least one of the roles of CEO, CFO, Chair and
SID is held by a woman, and at least one director is from
a minority ethnic background. The Company has met all
of the above targets, except the target to have 40% of
Board membership represented by women, which we
expect to comply with in 2024. We have also met the
Parker Review target to have at least one Director from
aminority ethnic background.
We test Board effectiveness and performance annually
through a formal evaluation. This year was conducted
in-house, led by myself and facilitated by the Group
Legal Director & Company Secretary. The process, key
conclusions and areas of focus for 2024 are set out on
page 115. I am pleased to report the findings show there
is clear consensus that the Board is operating well with
effective leadership and in an environment where open
discussion and input from all members isencouraged.
Positive feedback was also received on the composition
of the Board and the conduct of meetings and materials
provided. Some areas for focus were identified and
we will look to progress these during the year ahead.
Following this review, I am satisfied that the Board
continues to perform effectively and in particular I am
confident that the Board has the right balance of skills,
experience and diversity of personality to continue to
encourage open, transparent debate and challenge.
The details of Directors, skills and experience are set
out on pages 86 to 88. The governance framework and
the roles of the various Board Committees, principal
management committee and other key committees are
set out on pages 104 and 105.
Risk management remains a fundamental element of
the Board and Audit Committee’s agendas and our
governance efforts across the Group as a whole. The
Audit Committee’s Report on pages 118 to 126 sets out in
more detail the systems of risk management and internal
control. Details of our principal existing and emerging
risks and uncertainties can be found on pages30 to 36.
We believe that engaging with our Shareholders and
encouraging an open, meaningful dialogue between
Shareholders and the Company is vital to ensuring
mutual understanding. We are in regular contact with our
major Shareholders and potential Shareholders and in
2023 continued our scheduled programme of meetings
through in-person meetings and by way of video
conference as part of our continuing commitment to this
open and transparent dialogue. You can read more about
Shareholder engagement on pages 101 and 102.
Included within this Report is our Annual Implementation
Report on Directors’ Remuneration, which will be
presented to Shareholders for approval at the 2024 AGM.
We will continue to challenge ourselves and the business
and to consider and to learn from our decisions to
ensure that we build upon the existing strength of our
governance structure.
Stacey Cartwright
Chair
13 March 2024
83
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2
Executive
Board
gender
Diversity
Composition
Independent
Directors
Governance at a Glance
7
Non-Executive
2
0-3 years
3
3-5 years
2
5-9 years
6
Male
6
UK
8
White
3
Female
3
Non-UK
1
Ethnic minority
Board
Nationality
Board
Ethnicity
LEADERSHIP AND COMPANY PURPOSE
continued
The Board remains satisfied that it has
the appropriate balance of skills, experience,
independence and knowledge.”
84
Annual report and accounts 2023
The Board is committed to
maintaining the highest standards
of corporate governance.”
2023 HIGHLIGHTS
Board composition and changes
33% female representation on the Board
John Waters joined the Board on 13 December 2023
as an additional Independent Non-Executive Director
and replaced Stacey Cartwright as Chair of the Savills
Audit Committee with effect from 1 January 2024
Stacey Cartwright became Chair on the retirement
ofNicholas Ferguson on 1 January 2024
Richard Orders replaced Stacey Cartwright as
the Senior Independent Director with effect from
1January 2024.
Board attendance
In 2023 there were eight scheduled meetings of the
Board which Directors attended either in-person or
remotely, using video conference facilities
Directors’ attendance record at the scheduled Board
and. Board Committee meetings, is set out in the
table on page 93
Attendance is expressed as the number of scheduled
meetings attended, out of the number that each
Director was eligible or invited to attend.
Annual General Meeting
The 2023 AGM was held on 17 May 2023 at
33Margaret Street, London W1G 0JD
All Directors attended the AGM either in person
orremotely
During the AGM, the Company provided an
updateon trading up to the AGM, following which
the Chair Nicholas Ferguson took questions from
Shareholders which were responded to by the Chair
and other Directors
Voting was carried out by way of a poll as authorised
by the Articles of Association
All resolutions contained in the Notice of Meeting
were passed.
LR9.8.6R(10) as at the date of the Annual Report
Number of
Board
members
Percentage of
theBoard
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management**
Percentage
of executive
management
Men 6 67% 3* 8 100%
Women 3 33% 1
#
0 0
Other categories – – – – –
Not specified/prefer not to say – – – – –
Number of
Boardmembers
Percentage of
theBoard
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management**
Percentage
of executive
management**
White British or other White (including
minority-white groups) 8 89% 4 7 86%
Mixed/Multiple ethnic groups 0 0 0 0 0
Asian/Asian British 1 11% 0 1 14%
Black/African/Caribbean/Black British 0 0 0 0 0
Other ethnic group, including Arab – – – – –
Not specified/ prefer not to say – – – – –
* Mark Ridley (CEO), Simon Shaw (CFO), Richard Orders (SID)
# Stacey Cartwright (Chair)
** Defined as the Group Executive Board
85
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Appointment to the Board
Mark joined Savills in 1996 and was
appointed to the Board on 1 May 2018.
Background and relevant
experience
Mark is a Fellow of the Royal
Institutionof Chartered Surveyors.
He was Chair of Savills Commercial
from May 2008, then Chief Executive
Officer of Savills UK from 2013, and
additionally of Savills Europe from
2014, until he was appointed as
Deputy Group Chief Executive on
1 May 2018. As of 1 January 2019,
Mark was appointed as Group Chief
ExecutiveOfficer.
Other appointments
Trustee of Reading Real Estate
Foundation. Member of the
British Property Federation’s
LeadershipForum.
Appointment to the Board
Simon joined Savills as Group Chief
Financial Officer in March 2009.
Background and relevant
experience
Simon is a Chartered Accountant.
Hewas formerly Chief Financial Officer
of Gyrus Group PLC, a position he
held for five years until its sale to the
Olympus Corporation. Simon was
Chief Operating Officer of Profile
Therapeutics plc for five years and
also worked as a corporate financier,
latterly at Hambros Bank Limited.
Other appointments
Non-Executive Chair of Synairgenplc.
Appointment to the Board
Stacey was appointed to the Board
asa Non-Executive Director on
1October 2018 and became Chair
inJanuary 2024.
Background and relevant
experience
Stacey most recently served as Chief
Executive and then Deputy Chair of
Harvey Nichols Group until 2018, and
prior to that was EVP and CFO of
Burberry Group plc. She previously
served as CFO of Egg plc and spent
her early career in a number of
finance roles at Granada Group PLC.
She was a Non-Executive Director
at GlaxoSmithKline PLC from 2011
to 2016 and the Senior Independent
Non-Executive Director of the English
Football Association from 2018 to
2020. She qualified as a Chartered
Accountant with Price Waterhouse.
Other appointments
Non-Executive Director of AerCap
Holdings N.V, Genpact Ltd, Gymshark
and Majid al Futtaim (‘MAF’)
Entertainment. She is also the Chair of
MAF Lifestyle Advisory Committee.
Board of Directors
R N
Mark Ridley
Group Chief
Executive Officer
Simon Shaw
Group Chief
Financial Officer
N
Stacey
Cartwright
Chair of Savills
plc and Chair of
the Nomination
& Governance
Committee
LEADERSHIP AND COMPANY PURPOSE continued
86
Annual report and accounts 2023
Appointment to the Board
Florence was appointed to the Board
as a Non-Executive Director on
1October 2018.
Background and relevant
experience
Florence is currently Chief Executive
Officer of Willis Towers Watson
France& Luxembourg, having joined
from Zurich Insurance where she
was Chief Executive Officer France.
Florence was previously Chief
Operating Officer of Hiscox
Europe, prior to which she held senior
executive roles at AXA Real Estate
and AXA Investment Managers.
She spent her early career at
McKinsey&Company.
Other appointments
Non-Executive Director of Grant
Thornton International Limited.
Non-Executive Director of Auchan
Retail International.
Appointment to the Board
Dana was appointed to the Board
as a Non-Executive Director on
1November2019.
Background and relevant
experience
Dana was most recently a partner
and founding member of the Real
Estate Private Equity group at Angelo
Gordon, a privately held alternative
investment firm. During her 25-year
tenure, ending in December 2019, she
served as a manager and leader of
investment teams across all major US
markets, and served as a Member of
the Investment Committees for the
firm’s US Opportunistic, Core Plus and
Value Real Estate Funds. She spent her
early career in real estate valuation and
advisory at Arthur Andersen LLP in
Washington, DC.
Other appointments
Independent Director Cohen & Steers
Income Opportunities REIT, Inc
(‘CNSREIT’) and Advisory Board of
NYU Schack Institute of Real Estate.
A
N
Florence
Tondu-Mélique
Independent Non-
Executive Director
N
R
Dana Roffman
Independent Non-
Executive Director
Key:
A
Audit Committee
N
Nomination & Governance Committee
R
Remuneration Committee Chair of Committee
Appointment to the Board
Philip was appointed to the Board
as a Non-Executive Director on
1January2021.
Background and relevant
experience
Philip Lee is currently Vice Chair of
Global Banking, HSBC Bank and is a
member of the Global Banking Vice
Chair and Banking Leadership Forums.
Philip was previously with Deutsche
Bank (2013-2018) as Vice Chair of
South East Asia and Chief Country
Officer for the Bank in Singapore. Prior
to 2013, Philip was with JP Morgan
(1995-2013), where he was CEO South
East Asia Investment Banking and
Senior Country Officer, Singapore,
after having worked in senior positions
for various other banks in the region
before then. Since 2006, he has also
held roles on various advisory bodies
and Statutory Boards established by
theSingaporegovernment.
Other appointments
Non Executive Director of Heliconia
Capital Management, an investment
firm owned by Temasek focused on
growth-oriented Singapore companies,
and SPH Media Holdings, the Singapore
media company owned by the
Singapore Government. He is also
Chairof the Singapore Government’s
Health Promotion Board.
Philip Lee
Independent Non-
Executive Director
A
N
87
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Appointment to the Board
John was appointed to the Board
as a Non-Executive Director on
13December 2023.
Background and relevant
experience
John was with PwC for 36 years, of
which 24 were as a partner. John
was the lead partner from 2016 until
2020 as part of the Savills audit by
PwC. He was largely based in London
but had spells working for the firm in
both Hong Kong and Rome. During
his career he served as audit partner
to a wide range of clients, including
a number of significant property
businesses based both in London
andHong Kong.
Other appointments
None.
John Waters
Independent Non-
Executive Director
and Chair of the
Audit Committee
Appointment to the Board
Richard was appointed to the Board
asa Non-Executive Director on
1January 2021.
Background and relevant
experience
Richard Orders is currently Managing
Director at Moelis & Company, a
leading global independent investment
bank, heading the firm’s Hong Kong
office, having founded its predecessor
firm, Asia Pacific Advisors, in 2009.
Prior to this, Richard was with ABN
AMRO (1996-2008), latterly from
2004-8 as Vice Chair and Head of
Global Clients Asia, having previously
been Executive Chair and CEO of
ABN AMRO Asia Corporate Finance.
Previously, Richard held various roles
in Barings Bank, which he joined
in 1976, latterly as Head of Barings
Investment Banking business in Asia,
ex-Australia and Japan (1994-96) and
Director of Barings Corporate Finance
London(1996).
Other appointments
None.
Appointment to the Board
Marcus was appointed to the Board
as a Non-Executive Director on
15December 2022.
Background and relevant
experience
From 2002 until 2019, Marcus Sperber
held various roles with BlackRock,
acting first as the portfolio manager of
BlackRock’s UK property fund, before
being appointed as Head of EMEA
real estate and then ultimately holding
the role of Global Head of Real Estate.
Prior to 2002, Marcus held various
positions with Ashtenne (2001-2002),
Enterprise (1992-2001) and Roger Tym
& Partners (1990-92), having started
his career with the British Rail Property
Board (1987-89).
Other appointments
Founder of NorthCroft Capital, a
Real Estate Investment and advisory
business and a Non-Executive Director
of Cadillac Fairview Property Trust and
Fiera Real Estate Investment Limited
and Trustee of Jewish Care, a not-for-
profit charity.
Richard Orders
Senior Independent
Non-Executive
Director and
Chair of the
Remuneration
Committee
Marcus Sperber
Independent Non-
Executive Director
N
R
A A
N N
Board of Directors continued
LEADERSHIP AND COMPANY PURPOSE continued
88
Annual report and accounts 2023
Group Executive Board
Mark Ridley
Group Chief
Executive Officer
(effective
1 January 2019)
Simon Shaw
Group Chief
Financial Officer
Deputy Group Chief
Executive(from 1May 2018 to
31December 2018)
(SEE BOARD OF DIRECTORS ON PAGES 86
TO88 FOR FULL BIOGRAPHY)
(SEE BOARD OF DIRECTORS ON PAGES 86
TO88 FOR FULL BIOGRAPHY)
Key:
A
Audit Committee
N
Nomination & Governance Committee
R
Remuneration Committee Chair of Committee
Appointment to the Group
Executive Board:
Alex was appointed to the Group
Executive Board on 1 November 2019.
Background and relevant
experience
Alex became Global CEO of
SavillsInvestment Management on
1November 2019 and was appointed
to Savills Group Executive Board at
that time. Alex was previously Head
of Asia Pacific for M&G Investments
based in Singapore, with responsibility
for the development and leadership
of that company’s business across all
investment sectors in Asia Pacific. Prior
to this, he was Chief Executive of M&G
Real Estate, based in London. Before
that he was Chief Investment Officer
and CEO Europe of MGPA Limited.
Other appointments
None.
Alex Jeffrey
Chief Executive
Officer – Savills
Investment
Management
89
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Chris Lee
Group Legal
Director &
Company
Secretary
Raymond Lee
Chief Executive –
Hong Kong, Macau
and Greater China
David Lipson
Chief Executive
Officer – Savills
North America
Appointment to the Group
Executive Board
Raymond was appointed to the Group
Executive Board in January 2011.
Background and relevant
experience
He joined Savills in 1989. In 2003,
Raymond became the Managing
Director in Hong Kong and Macau and
in 2010 was appointed CEO of Greater
China. Raymond is a Fellow member
of the Hong Kong Institute of Directors
and holds an honorary fellowship
at the Quangxi Academy of Social
Science. Raymond is also an Honorary
Doctor of Management at Lincoln
University and holds a Fellowship
at the Asian College of Knowledge
Management (‘ACKM’). He became a
fellow member of the Royal Institute of
Chartered Surveyors (RICS) in 2016.
Other appointments
None.
Appointment to the Group
Executive Board
Chris joined Savills in June 2008
andwas appointed to the Group
Executive Board in August 2008.
He has responsibility for legal and
compliance issues globally.
Background and relevant
experience
He held equivalent roles with Alfred
McAlpine plc, Courts plc and Scholl
plc between 1997 and 2008, prior to
which he was deputy group secretary
of Delta plc from 1990 to 1997.
Other appointments
None.
Appointment to the Group
Executive Board:
David was appointed to the Group
Executive Board on 1 January 2024.
Background and relevant
experience
David Lipson is CEO of Savills North
America. He previously served as
President, North America from
2021 through 2023. As CEO, his
responsibilities include oversight of
all Savills business lines and locations
in North America, as well as mergers
and acquisitions and strategic business
development pursuits. David has
dedicated more than 33 years of
service to Savills and is one of the
firm’s most tenured and respected
leaders. He co-managed the Mid-
Atlantic region for almost 15 years
and has served on the firm’s Board
and executive committee since 2004
and2014, respectively.
Other appointments
David currently serves as Chair of
the Board for the British Schools
and Universities Foundation. He is a
member of the Board of Benefactors
at Christ Church, Oxford.
Group Executive Board continued
LEADERSHIP AND COMPANY PURPOSE continued
90
Annual report and accounts 2023
Christian
Mancini
Chief Executive
Officer – Asia
Pacific (ex Greater
China)
James Sparrow
Chief Executive
Officer, UK & CEME
Appointment to the Group
Executive Board:
Christian was appointed to the Group
Executive Board on 1 July 2016.
Background and relevant
experience
Christian was made CEO of Savills
Japan in 2007 and appointed CEO of
Savills Northeast Asia in 2012.
Other appointments
Christian also serves as Non-Executive
Director in Savills Asset Advisory, the
wholly-owned asset management
subsidiary of Savills Japan Co, Ltd
created in May 2012.
Appointment to the Group
Executive Board:
James was appointed to the Group
Executive Board on 1 May 2018.
Background and relevant
experience
James is a Fellow of the Royal
Institution of Chartered Surveyors. He
became Chief Executive of Savills UK
& CEME in September 2018, having
previously been Chief Executive of
Savills UK since 1 May 2018. Prior to
this James held the position of Head
of Professional Services, Savills UK
and was a member of the Savills UK
Executive Board since 2013 when it
was established. Before that James
was a member of the Executive Board
of Savills Commercial, having joined
Savills in 1988.
Other appointments
None.
91
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
LEADERSHIP AND COMPANY PURPOSE continued
Board Leadership and Company Purpose
Effective Board
Having the appropriate mix of experience, expertise,
diversity and independence is essential for the Savills
Board. Our Board comprises highly skilled professionals
who bring a range of skills, perspectives and corporate
experience to our Boardroom (see pages 86 to 88). To
ensure sufficient time for discussion, the Board utilises
its principal committees to effectively manage its time
(see pages 104 and 105 for Governance Framework).
At each Board meeting, the agenda ensures sufficient
time for the Committee Chairs to report on the
contents of discussions at Committee meetings, any
recommendations to the Board which require approval
and the actions taken.
Governance arrangements and Board
resources
Our governance arrangements support the development
and delivery of strategy by:
ensuring accountability and responsibility;
facilitating the sharing of information to
informdecisions;
establishing engagement programmes with key
stakeholders (see pages 101 and 102);
maintaining a robust system of risk oversight,
management and effective internal controls
(seepage 126); and
providing independent insight and knowledge
fromthe Non-Executive Directors.
The Board has formally adopted a schedule of matters
reserved to it for decision. These matters include
decisions relating to the Group’s strategy, financing, any
major acquisition or disposal, the risk appetite of the
Group and the authorisation of capital expenditure above
the delegated authority limits. The schedule was most
recently reviewed in March 2024 and is available along
with the Terms of Reference of the Board’s principal
Committees on the Company’s website at
http://ir.savills.com.
Board and Committee meetings are structured to allow
open discussion. To enable the Board to discharge its
duties, each Director receives appropriate and timely
information. Board papers are circulated electronically
via a secure portal, giving Directors sufficient time to
consider and digest their contents. The Chair of the
Board and the Chairs of the Committees set the agendas
for upcoming meetings with support from the Group
Legal Director & Company Secretary.
The Chair, together with the Group Legal Director &
Company Secretary, ensures that the Directors receive
management information, including financial, operating
and strategic reports, in advance of Board meetings.
We aim to ensure that the information shared with our
Board is of sufficient depth to facilitate debate and to
allow Board members to fully understand the content.
The Board will, as appropriate, invite the preparer of the
report to attend meetings so the Board can gain a better
understanding and question management directly. The
Heads of Principal Businesses also periodically attend
Board meetings to discuss the progress made by the
Principal Businesses against their strategic plans.
In order to fulfil their duties, procedures are in place
for Directors to seek both independent advice and
the advice of the Group Legal Director & Company
Secretary who is responsible for advising the Board on
allgovernance matters.
At its meetings during the year, the Board discharged
its responsibilities and received updates on the Group’s
financial performance, key management changes,
material new projects, financial plans, and ESG, legal
andregulatory updates.
92
Annual report and accounts 2023
Board Attendance in 2023
Attendance at all Board and Committee meetings by Directors is as shown in the table below:
Board
8 scheduled
meetings
(including the
Strategy Day)
Audit Committee
5 scheduled
meetings
Nomination &
Governance
Committee
3 scheduled
meetings
Remuneration
Committee
4 scheduled
meetings
Non-Executive Directors
Nicholas Ferguson
1, 2, 3
8 3 3 4
Stacey Cartwright 8 5 2 4
Florence Tondu-Mélique 8 5 3 –
Dana Roffman 7 – 3 4
Philip Lee 8 5 3 –
Richard Orders 8 – 3 4
Marcus Sperber 7 4 3 –
John Waters
4
1 – – –
Executive Directors
Mark Ridley
5, 6
8 2 3 3
Simon Shaw
5, 7
8 5 – 1
1. The Chair attended three Audit Committee meetings by invitation.
2. The Chair attended four Remuneration Committee meetings.
3. Nicholas Ferguson retired from the Board on 31 December.
4. John became a member of the Audit Committee on 1 January 2024.
5. Members of the Group Executive Board.
6. The Group Chief Executive attended two Audit Committee meetings by invitation.
7. The Group Chief Financial Officer attended five Audit Committee meetings by invitation.
Notes to table and graphics
1. The information above is stated as at 13 March 2024.
2. The FCA’s Listing Rules now set board diversity targets for listed companies requiring that (i) at least 40% of Board members are women; (ii) at least one of the
roles of CEO, CFO, Chair and SID is held by a woman; and (iii) at least one director is from a minority ethnic background. Savills has met the targets for (ii) and (iii)
but does not yet meet the target of 40% of the Board being women. The Company fully expects to comply with this target in 2024.
93
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
LEADERSHIP AND COMPANY PURPOSE continued
The Board is responsible for instilling throughout the Company a strong and well embedded inclusive culture; founded
on an entrepreneurial approach, one of integrity and openness, and one that values diversity and is responsive to
the views of its Shareholders and wider stakeholders. This is underpinned by our values and operational and ethical
standards. We have built our brand and reputation on the quality of our people, relationships, resources and processes.
The Savills Code of Conduct helps aid the understanding and embodiment of behaviours that align employees with
the culture set by the Board, and underpins our social, ethical and environmental commitments. A confidential and
anonymous independently hosted ‘Speak-up’ facility is in place which enables employees to report any concerns
related to unethical conduct in any areas of the business. All disclosures are investigated promptly, overseen by the
Group Legal Director & Company Secretary and escalated to the Board as appropriate, with follow-up action being
taken as soon as practicable thereafter.
Our cultural framework
Our Purpose
Helping people thrive through
places and spaces
Our vision
To be the real estate advisor of choice in the markets we serve.
The growth of the Group is underpinned by providing best-in-class
insights and advice to help individuals, businesses and investors
make better real-estate decisions.
Our values
We CollaborateWe Empower We ChallengeWe Listen
READ MORE ABOUT OUR VALUES ON PAGE 11
94
Annual report and accounts 2023
Staff turnover, retention
and absenteeism rates
Internal audit
Action taken
Received and considered updates
on the risk and internal control
environments within the Group’s
Asia Pacific, North American,
CEME and UK businesses and
Savills Investment Management
Link to culture
Provides the Board with a direct
view to ensure that behaviours
are at the desired standard
and provides details of any the
corrective action being taken
Employee management
information
Action taken
Received feedback on the employee
surveys across the business
Link to culture
Analysis of Employee Survey data
enables the Board to understand
the employee experience. This
provides the Board with insights
into working environments,
employee behaviours and
attitudes and enables the Board to
assess how working practices and
behaviours align with the purpose,
values and strategy of the Group
Modern slavery
Action taken
Reviewed and approved the
Group’s Modern Slavery Statement
Link to culture
This provides the Board with a
broad understanding of practices
and behaviours across the Group,
and how these align with our values
Provides oversight of steps taken
to prevent modern slavery and
human trafficking within the Group
and its supply chain
Whistleblowing
Action taken
The Board receives reports
received via the Group’s
whistleblowing (‘Safe Call’)
systemand received the progress
of related investigations
Link to culture
Speak-up reports provide the
Board with a view of the nature
of employee concerns and trends
inbehaviours
Health & safety
information
Action taken
The Board receives health and
safety management data from
across the Group
Link to culture
Enables the Directors to assess the
effectiveness of safety practices
and behaviours
Direct Management
Action taken
The Board receive
presentationsfrom senior
management across the Group
together with regularreports
Link to culture
This provides the Board with
direct insights into behaviours
and practices, and the
practical application of policies
andstandards
Employee wellbeing
Training & development
(programme overview
and outputs)
Exit interviews
Whistleblowing,
grievance and ‘Speak-
up’ data
Promptness of
payments to suppliers
Employee surveys Recruitment, reward
and promotion
decisions (overview)
How the Board monitored culture in 2023
Our people-related KPIs
95
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
LEADERSHIP AND COMPANY PURPOSE continued
Stakeholder Engagement
Savills is a geographically and culturally diverse business
providing services in more than 70 countries. As a result,
it has a global and diverse community of stakeholders,
each with their own interests in, and expectations of
theCompany.
Making a positive impact is at the heart of our
relationships. From the way we advise our clients,
to the work we do directly, we are committed to
adding commercial value while always honouring our
responsibility to protect the environment, support
local communities and foster an inclusive culture.
The development of strong and positive relationships
between Savills and its external stakeholders is
an intrinsic part of our purpose and culture. Our
stakeholders include not only clients, our Shareholders
and our people, but also suppliers and the wider
communities in which we operate. As noted in the
Company’s statement on Section 172 of the Companies
Act 2006 set out on page 99, in making their decisions
and in discharging their duties to promote the success
of the Company, the Directors must have regard to the
interests of its stakeholders.
We have summarised below why our stakeholders are
important to us, what we believe their principal interests
are and how the Board and Company seeks to engage
and respond.
The collective role of the Directors is to act as effective
and responsible stewards of the Company. In so doing,
the Board ensures that the Company is well positioned
to achieve long-term sustainable success and deliver
value for its stakeholders.
The Board engages directly with stakeholders
(receivingpresentations and reports from the Executive
Directors, and in relation to business for which they
have responsibility, senior management from across the
Group), but there is also significant engagement at all
levels across the Group, particularly in relation to people,
clients and suppliers, with the Board receiving regular
updates on stakeholder views. The Board maintains
oversight of this engagement and receives reports
and updates on such engagement from the Executive
Directors and senior management and is given the
opportunity to challenge these findings at Board and
Committee meetings. This information is used to inform
discussion and decision-making.
Our Suppliers
Our businesses have regular
engagement with their key
suppliers, who are required
to operate with high service
levels and the ethical standards
that are set out in our Code of
Conduct. We regularly monitor
the relationship and engagement
approach with our third-
partysuppliers
Our Clients
Our clients are key to the success
of our business
Our People
Our people are our most valuable
asset. We firmly believe that
our people are key to delivering
excellent service to our clients and
achieving our objectives
Our Community
We believe that the community
engagement programmes that we
have developed have a positive
impact on the areas where our
people live and ensure that
Savills is firmly engaged with the
communities we serve
Our Shareholders
We believe that engaging with our
Shareholders, and encouraging
an open, meaningful dialogue
between Shareholders and the
Company is vital to ensuring
mutual understanding
Our Environment
We are committed to improving
the impacts our operations have
on the environment, managing
climate-related risks and working
together with our clients,
suppliers and local communities
towards delivering a more
sustainablefuture
Savills
96
Annual report and accounts 2023
We are focused on driving long-term sustainable performance for the benefit of our clients, Shareholders and wider
stakeholder groups. We aim to maintain an open and positive dialogue with all our stakeholders, considering their key
interests and communicating with them on a regular basis.
The Board remains committed to strengthening its engagement with employees and the Company’s wider stakeholder
group and considers the views of key stakeholders in its decision-making, recognising that they are central to the long-
term prospects of the Company.
Stakeholder group and why
we engage How we engaged them in 2023 Further links
Our Clients
Our clients are key
to the success of
ourbusiness.
We are in continuous contact with our clients, to understand their
requirements, to listen to their feedback on our service levels and to
understand their expectations in terms of the development of our
serviceoffering.
We invest in our people and systems to ensure they have the right skills,
competencies and tools to effectively nurture and grow client relationships.
Our investment in this programme, our internal collaboration and the
introduction of technology has supported our client relationship management
approach, resulting in us being able to better meet our clients’ expectations
and adapt more quickly to evolving market conditions.
The quality of our service performance continues to be regularly assessed
by independent reviewers. This helps us better understand how we are
managing relationships and what we need to change to deliver the service
and added value our clients expect. We regularly ask our clients for feedback
on our service offering so we can continue to provide best-in-class services
andadvice.
Client
engagement
page 55
Our People
People are at the core
of our business.
We aim to build a
trusting, respectful and
inclusive culture where
people feel engaged
and fulfilled.
We want our people
tobe treated with
dignity at work and
to have their human
rightsrespected.
We firmly believe that our people are key to delivering excellent service to
our clients and achieving our objectives. We believe that in order to deliver
our strategy, it is essential that our people are fully engaged and motivated.
Wellbeing is fundamental to this and, over the last few years, we have
continued to build on our wellbeing programmes and activities.
We have continued to focus on employee engagement through a number
of areas, including supporting the health and wellbeing of our employees.
We gather feedback regularly from our employees to assess their levels of
engagement. We treat all our people with dignity and respect, with support
against cost-of-living increases targeted to more junior employees and
maintaining our core bench-strength through challenging markets. During the
year we continued to utilise valuable multiple channels to communicate and
engage with employees, including regular town hall and other meetings, all-
employee emails and our intranet.
As part of our commitment to helping all our people to understand the
Group’s growth strategy and to raise other questions about the Group, our
digital platform allows direct employee communication (in local languages)
with Non-Executive Directors (including the Chair) to allow employee views
toflow to the Board direct.
During 2024 we will review this facility to ensure that this remains an effective
mechanism for facilitating two way communication with employees direct with
the Board member.
Our Principal Businesses have employee-led groups in place covering areas
such as diversity and inclusion, innovation, and social events. Feedback
received from these working groups is given to the ESG Committee, and
ultimately the Board.
Employee
feedback
page48
Diversity and
Inclusion pages
50 to 54
Engaging with
our people
page102
97
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Stakeholder group and why
we engage How we engaged them in 2023 Further links
Our Community
We believe that the
community engagement
programmes that we
have developed have a
positive impact on the
areas where our people
live and ensure that
Savills is firmly engaged
with the communities
we serve.
To help us successfully engage with local communities, we have adopted a
range of approaches, e.g. charitable giving, volunteering events, pro bono
work, and work experience opportunities to facilitate and participate in
community interaction and cohesion. This approach means we can establish
and maintain effective connections, deliver real benefit and remain proactive
to the current issues that communities may be facing. In 2023, 24,300
volunteering hours were given by our people, an increase from 16,700 in
2022. In addition, over 580 pro bono hours were given.
Our Group’s ESG strategy is aligned with nine of the 17 UN Sustainable
Development Goals (‘SDGs’) to help us achieve our Sustainability objectives.
Read more about our community initiatives on pages 56 to 63.
Charity and
Community
involvement –
case studies on
pages 56 to 63
Our Environment
We are committed to
improving the impacts
our operations have
on the environment,
managing climate-
related risks and
working together with
our clients, suppliers
and local communities
towards delivering a
more sustainable future.
Whether it’s the way we advise clients or the work we do directly, we
always seek to add value through initiatives that help both people and our
environment to thrive.
Savills plc is committed to achieving net zero for its operations (Scope
1 and 2) in 2030 and for its value chain (Scope 3) green-house gas
(‘GHG’) emissions by 2040. Savills is currently working to verify interim
decarbonisation targets with the Science Based Targets initiative (‘SBTi’)
aspart of this, Savills would be recognised by the Race to Zero and Business
Ambition for 1.5°C campaigns.
Read more about our ESG strategy including carbon efficiency
improvements, GHG Emissions and TCFD reporting on pages 68 to 80.
Responsible
Business, our
ESG strategy
pages 30 to 80
Our Shareholders
We believe that
engaging with our
Shareholders and
encouraging an open,
meaningful dialogue
between Shareholders
and the Company is
vital to ensuring mutual
understanding.
The Group Chief Executive and Group Chief Financial Officer have primary
responsibility for investor relations and lead a regular programme of meetings
and presentations with analysts and investors.
We build relationships with our Shareholders through our investor relations
programme which includes regular investor roadshows. These engagements
generated insightful feedback which was shared with the Board and the
Company’s Committees with due regard being given to these views. In
addition, the Board also normally receives feedback twice each year from its
corporate brokers on investors’ and the market’s perceptions of the Company.
The AGM provides the Board with an opportunity to engage with
ourShareholders.
The Chair and the Senior Independent Director, Richard Orders, are also
available to meet Shareholders at all times when so required.
KPIs pages 18
and 19
Shareholder
engagement
pages 101
and102
Annual General
Meeting
page102
Our Suppliers
Our businesses have
regular engagement
with their key suppliers,
who are required to
operate with high
service levels and
the ethical standards
that are set out in
our Code of Conduct.
We regularly monitor
the relationship
and engagement
approachwith our third-
party suppliers.
We work with a broad range of supply-chain partners, particularly in our
property management businesses and work hard to ensure that we can deliver
the best service for our clients by building close and collaborative relationships
with key suppliers. Our Tiering framework ensures that the vast majority of
the expenditure is placed with service partners who sign up to our PM+ Core
Principles and regular 360° assessment is undertaken.
All suppliers are required to operate with high service levels and the ethical
standards that are set out in Savills Code of Conduct and our Modern Slavery
and Anti-Trafficking Statement.
We regularly monitor the relationship and engagement approach with our
third-party suppliers including communications received via the Company’s
Speak-up policy.
Code of
Conduct
page65
Speak-up
policy page 65
Modern Slavery
statement
page 65
LEADERSHIP AND COMPANY PURPOSE continued
Stakeholder Engagement continued
98
Annual report and accounts 2023
The Board of Directors of Savills plc consider, both individually and together, that they have acted in the way they
consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as
a whole. In doing this, the Directors have had regard to stakeholders, and amongst other matters, to those set out in
s.172(1) (a-f) of the Act in the decisions taken during the year ended 31 December 2023.
In the context of the Board’s activities during 2023, the table below sets out some examples of how the Directors have had
regard to the matters set out in Section 172(a-f) when discharging their Section 172 duties and decision-making.
Section 172 matters How the Board had regard to these matters during 2023
Read more about our
approachtos.172(1) matters
(a) likely
consequences of
any decisions in
the long term
The Board remains mindful that its strategic decisions can have
both short-and long-term implications for the Group and its
stakeholders and these implications are considered carefully.
We consider our stakeholders when developing and executing
ourstrategy which is reviewed on an annual basis. During the year
the Board:
considered regular reports from Senior Management and the
Heads of the Principal Businesses on business performance,
financing and the implementation of strategy throughout
theyear;
at a Strategy Review in November reconfirmed the Group’s
strategy and medium-term plan, including updates on progress
made in relation to strategic initiatives from across the business
and discussion of priorities in the short, medium and longer
terms, including the Group’s ESG strategy and net zero
carbonobjectives; and
approved material transactions, specifically the acquisitions of
BeLiving; Nash Bond and Predibisa.
Our business model
pages10 and 11
Chair’s statement
pages82and 83
Our strategy pages 6 to 80
Board focus in 2023
pages108 and 109
Board principal decisions
pages 108 and 109
Our purpose page 94
Risk management page 117
(b) interests of
employees
We believe that in order to deliver our strategy, it is important
that our people are fully engaged and motivated
We continue to listen to and support the needs of our people,
ensuring honest, open lines of communication to enable our
employees to stay positive, connected and productive, while
feeling valued and supported
Our employee engagement programme maintains its focus on
key areas, including in particular through third-party-led support
programmes with specific emphasis on health and wellbeing.
During the year we gathered feedback from our employees to
assess their levels of engagement through employee surveys.
Our people pages 48 to 54
Diversity and Inclusion
pages 50 to 54
Our culture page 65
Speak-up policy page 65
Leadership and Company
purpose page 92
Engaging with our
peoplepage 102
(c) fostering the
Company’s
business
relationships with
suppliers, clients
and others
The Board reviewed the 2024-2026 Business Plan which included
the importance of maintaining the highest levels of client service,
which is fundamental to the delivery of the Group’s strategic
goals. We tested our performance in this critical area and how
we need to further enhance our client service offering by seeking
feedback from a representative sample of clients across the globe.
Our business model
pages10 and 11
Our clients page 55
Speak-up policy page 65
Human rights and modern
slavery page 65
Leadership and Company
purpose page 92
Board principal
decisionspages 108 and 109
Section 172(1) statement
99
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Section 172 matters How the Board had regard to these matters during 2023
Read more about our
approachtos.172(1) matters
(d) impact of the
Company’s
operations on the
community and
the environment
The Board is responsible overall for managing ESG and climate-
related risks and realising opportunities. We recognise the need
for urgent action by real estate owners and occupiers to address
the climate crisis and rapidly transition to a greener more resilient
economy and target our initiatives accordingly.
TCFD allows us to better understand climate-related risk in our
own operations. The Board supports management’s approach
to Environmental, Social and Governance matters and we are
committed to strengthening our understanding of climate-related
risks to our own operations as well as helping our clients to
improve the resilience of their portfolios.
In 2023 we have continued to target improvements based on
delivering against our ESG objectives, as we progress towards
our nine Sustainable Development Goals globally. These SDGs are
those where we feel we can make the largest impact and which
are most relevant to our business. Specific examples of where we
continue to improve can be found in the Responsible Business
report on pages 38 to 80.
Environment
pages 40 to 43
Community
pages 56 to 63
GHG and energy data
pages68 to 72
TCFD disclosures
pages73to 80
(e) maintaining a
reputation for
high standards of
business conduct
Our Code of Conduct sets out our commitment to operate
responsibly wherever we work in the world, to work professionally,
fairly and with integrity and to engage with our stakeholders
to manage the social, environmental and ethical impact of our
activities in the different markets in which we operate.
We have policies in place requiring that we uphold laws relevant
to countering financial crime (including bribery and corruption)
inall the jurisdictions in which we operate.
To facilitate the Savills Board’s assessment and monitoring of
culture, the Board adopted a number of KPIs.
We are committed to ensuring that we take all appropriate steps
to prevent Modern Slavery from occurring in our business or
supply chain and continue to publish our annual Modern
Slavery statement, on our website and which sets out Savills zero
tolerance approach to Modern Slavery in our organisation and
supply chain. Our current statement, approved by the Board in
March 2023, sets out actions taken to address risks of Modern
Slavery within our business and supply chain during the financial
year from 1 January 2023 to 31 December 2023.
The Board is committed to ensuring that its composition
provides the necessary balance of diversity, skills, experience,
independence and knowledge to ensure we continue to run
the business effectively and deliver sustainable growth. In 2023
theBoard:
considered the composition and effectiveness of the Board;
reviewed and approved corporate statements;
undertook annual review of the principal and emerging risks of
the Group;
reviewed and validated the effectiveness of the Group’s systems
of internal controls and risk management framework;
considered reports on specific risk areas across the
business;and
reviewed and approved the Group’s full-year and half-year
results, as well as the regulatory announcements and the Group’s
Viability Statement and Going Concern status.
Chair’s statement on
pages82 to 84
Our culture page 65
Modern slavery
statementpage 65
Speak-up page 65
Leadership and purpose
page 92
Internal controls page 117
LEADERSHIP AND COMPANY PURPOSE continued
Section 172(1) statement continued
100
Annual report and accounts 2023
Section 172 matters How the Board had regard to these matters during 2023
Read more about our
approachtos.172(1) matters
(f) acting fairly as
between members
of the Company
The Directors understand their duty to act fairly between different
Shareholders as required by UK company law and the Company’s
regulatory obligations, pursuant to its UK listing.
We are in regular contact with our major Shareholders and
potential Shareholders.
Our active engagement programme with our Shareholders
involves a regular, scheduled programme of meetings as part of
our continuing commitment to open and transparent dialogue.
During the year the Group Chief Executive and Group Chief
Financial Officer undertook their regular programme of engagement
with Shareholders which included: the financial reporting cycle
comprising full-year and half-year financial results; and one-to-one
investor meetings (virtual) and calls.
During the year the Board reviewed and approved the following
activities and documents, and in doing so considered that they
were acting fairly between members:
AGM Trading Update
Half-year financial results
Notice including resolutions for the Annual General Meeting
Full-year results for the year ending 31 December 2022
Annual Report and Accounts 2023
2022 Supplemental and Final and 2023 Interim
Dividendapproval.
Engaging with
stakeholderspages
101 and 102
Engaging with our Investors
The Board is committed to maintaining an open dialogue with investors which is achieved through a programme of
structured engagement. We regularly engage with our institutional Shareholders through an active investor relations
programme. The Group Chief Executive and Group Chief Financial Officer have primary responsibility for investor relations
and lead a regular programme of meetings and presentations with analysts and investors. This includes presentations
following the publication of the Company’s full and half-year results. This programme maintains a continuous two-way
dialogue between the Company and Shareholders, and helps to ensure that the Board is aware of Shareholders’ views
on a timely basis. These engagements generate insightful feedback which is then shared with other Board members and
Committees with due regard being given to these views. In addition, the Board also normally receives feedback twice each
year from its corporate brokers on investors’ and the market’s perceptions of the Company. The Chair and Richard Orders
as the Senior Independent Director are also available to meet Shareholders at all times as required.
Engaging with our people
People are at the core of our business. The Board routinely invites members of the management team to join meetings
to present on the matters being discussed. In order to reach all employees, the Board utilises a combination of formal
and informal engagement methods which are detailed below.
In accordance with the Code, the Board continues to review the mechanisms that it uses to engage with its workforce.
Having considered the three mechanisms set out in the Code the Board is satisfied that reflecting the Group’s
geographic spread it was beneficial for all of the Non-Executive Directors to be engaged in the workforce engagement
programme, with each therefore to be ‘designated’ for workforce engagement purposes (rather than nominating
a single Non-Executive Director). The Board believes this enhances each of the Director’s engagement with, and
understanding of, workforce views, leverages cultural awareness and is more efficient (in that it does not require a
single designated Non-Executive Director to engage across all of the Group’s diverse geographic markets).
Ask the Board
In December 2018, we introduced a digital platform to allow direct employee communication with Non-Executive Directors
(including the Chair) in areas of focus (such as strategy, training & development opportunities; measurement of staff
performance and promotion criteria; diversity; and flexible working). During 2024 we will review this facility to ensure that
this remains an effective mechanism for facilitating two way communication with employees direct with the Board member.
101
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
LEADERSHIP AND COMPANY PURPOSE continued
The Board will continue to assess the effectiveness of its
engagement with the workforce and how ultimately this
informs the decisions that it takes, including the options
provided for in the Code.
How the Board factored employee engagement into its
decisions in 2023 – page 99.
More detail about our commitment to our people is set out
in the Responsible Business section of this Annual Report
and Accounts in the Strategic Report on pages 37 to 80.
Our approach to Shareholder engagement
AGM
The Annual General Meeting (‘AGM’) provides the Board
with an opportunity to communicate with, and answer
questions from, private and institutional Shareholders.
Allresolutions were passed at the 2023 meeting in line
with the Board’s recommendations. The Chair of each
of the Committees is available at the AGM to answer
questions. Directors are available before and during the
meeting to answer questions from Shareholders and to
meet with Shareholders following the conclusion of the
formal part of the meeting.
The level and manner of voting of proxies lodged on
each resolution at the AGM is declared at the meeting
and published on the Company’s website. The notice of
the AGM is sent out at least 20 working days before the
meeting and at least 15 working days’ notice would be
given before other general meetings.
In accordance with the Company’s Articles of
Association, electronic and paper proxy appointments
and voting instructions must be received not later
than 48 hours before a general meeting. Details of
the resolutions to be proposed at the Annual General
Meeting on 15 May 2024 can be found in the Notice of
Meeting which accompanies this Report and Accounts.
Corporate website
The Company’s website http://www.ir.savills.com has a
section dedicated to investors where a range of valuable
information can be found including:
A financial calendar of events
Published annual results and results announcements
Details of the Company’s corporate governance
arrangements
Board and Committee profiles
The Group’s ESG strategy
Regulatory announcements.
The Company has taken advantage of the provisions
within the Companies Act 2006 which allow
communications with Shareholders to be made
electronically, where Shareholders have not requested
hard-copy documentation. Details of the information
available to Shareholders can be found on page 267.
Employee Surveys
We gather feedback regularly from
our employees to assess their levels
of engagement.
Working Groups
Our principal businesses have
employee-led groups in place
covering areas such as diversity
and inclusion, innovation, and social
events. Feedback received from
these working groups are given to
the ESG Committee, and ultimately
the Board.
Our Diversity and Inclusion Groups –
pages 51 and 52.
Access to Non-
ExecutiveDirectors
Our digital platform which
allowsdirect employee
communication (in local languages)
with Non-Executive Directors
(including the Chair) in areas of
focus (such as strategy, training
and development opportunities;
measurement of staff performance
and promotion criteria; diversity;
andflexibleworking).
Town Hall/Employee
briefings
We hold town hall meetings within
our Principal Businesses, and other
events, in particular focusing on
wellbeing and mental health issues,
supported by webinars provided by
external providers.
Speak-up
We operate independently hosted
confidential and anonymous Speak-
up services which enable employees
to report any concerns related to
unethical conduct in any areas of
the business. All disclosures are
investigated promptly overseen
by the Group Legal Director &
CompanySecretary and escalated
to the Board as appropriate, with
follow-up action being taken as soon
as practicable thereafter.
Social Media
A variety of Social media channels
is utilised to enhance engagement
and the exchange of information
on the Company’s activities to all
stakeholders. These channels include,
X (formerly Twitter), Instagram and
our intranet. In particular our intranet
is used as a platform for employees
to access our policies and to receive
information on wellbeing, health and
safety, andtraining.
How we engage with employees
Section 172(1) statement continued
102
Annual report and accounts 2023
The Board is committed to the highest standards of
corporate governance and risk management which is
demonstrated in its established corporate governance
framework as illustrated on pages 104 and 105.
The Board leads the Group’s Governance Structure.
DIVISION OF RESPONSIBILITIES
Board Committees
The Board has established three principal Committees
to which it has delegated certain of its responsibilities,
as set out below. The roles, membership and activities
of these Committees can be found in the pages
whichfollow.
Group Executive Board (‘GEB’)
The Group Chief Executive is supported by the GEB.
The GEB is the key management committee of the
Group. It is chaired by the Group Chief Executive and
comprises the Group Chief Financial Officer, the Heads
of the Principal Businesses and the Group Legal Director
& Company Secretary. The GEB meets regularly and
under the leadership of the Group Chief Executive, the
GEB is responsible for the day-to-day management
of the Group including overseeing the development
and implementation of strategy, capital expenditure,
and investment budgets, for the ongoing review and
control of the Group’s principal existing and emerging
risks and uncertainties as detailed on pages 30 to 36
and reporting on these areas to the Board for approval,
implementing Group policy, monitoring financial and
operational performance of the Group and other specific
matters delegated to it by the Board. The Group Chief
Executive is also supported by Regional Service Line
Strategy Groups which are tasked with the continuous
development of service line offerings, client relationship
management and the development and sharing of best
practice in each region, in particular to ensure that the
Group’s offering across its key service lines continues to
evolve to meet new client requirements and to ensure a
consistent approach across the Group. An explanation
of how the Group creates and preserves value, and the
strategy for delivering its objectives is included in the
Strategic Report on pages 6 to 80.
A robust governance framework
Has primary responsibility for providing
entrepreneurial leadership for the Group
Oversees the overall strategic development of
the Group and approves the strategy to achieve
the Group’s strategic aims
Sets the Group’s values and standards
Ensures effective governance and risk
management and that the Group’s businesses
act ethically and that obligations to
Shareholders are understood and met
Delegates the management of the day-to-day
operation of the business to the Group Chief
Executive, supported by the Group Executive
Board subject to appropriate risk parameters.
The Board has adopted a formal schedule of matters specifically
reserved to it for decision-making. A full schedule of matters reserved
for the Board’s decision along with the Terms of Reference of the
Board’s principal Committees can be found on the Company’s
websiteat http://ir.savills.com
OVERVIEW OF THE BOARD’S
RESPONSIBILITIES
103
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIVISION OF RESPONSIBILITIES continued
Division of the Responsibilities
Board (during 2023: Chair, two Executive Directors and six Non-Executive Directors (seven
from 13 December 2023); with effect from 1 January 2024: Chair, two Executive Directors and
six Non-Executive Directors).
Audit Committee
Principal Business Executive Committees
Responsible for assisting the
Board in fulfilling its financial
and risk responsibilities, and in
particular for ensuring that the
financial statements are fair,
balanced and understandable
Oversees external financial
reporting, internal control,
risk management and reviews
the work of the Internal and
External Auditors
Advises the Board on
the appointment of the
ExternalAuditors.
Chair: John Waters
Number of meetings in the year: 5
For more information
see pages 118 to 126
Lead each Principal Business
Responsible for the day-to-day management of the relevant Principal Business
Oversee the development and implementation of strategy, capital expenditure, and investment budgets for
the ongoing review and control of Group risks, reporting on these areas to the Group Executive Board and,
asnecessary, the Board for approval
Implement Group policy
Monitor financial and operational performance of the relevant Principal Business and other specific matters
delegated to them by the Group Executive Board.
Responsible for the broad
policygoverning senior staff
pay and remuneration
Sets the actual levels of all
elements of the remuneration
of the Executive Directors,
and Group Executive
Boardmembers.
Chair: Richard Orders
Number of meetings in the year: 4
For more information
see pages 127 to 150
Responsible for size, structure
and composition of the Board
Reviewing and progressing
appointments to the Board
Responsible for succession
planning at Board and senior
management-level to ensure
that (i) the Board is refreshed
progressively such that the
balance of skills and experience
available to the Board remains
appropriate to the needs of
the business; and that (ii) the
Group has the necessary talent
bench-strength to ensure
seamless succession at senior
management-level
Makes recommendations to
the Board on the membership
of the principal Committees
oftheBoard
Monitoring of the Company’s
compliance with applicable
codes and other requirements
of Corporate Governance.
Chair: Stacey Cartwright
Number of meetings in the year: 3
For more information
see pages 110 to 115
Remuneration Committee Nomination & Governance Committee
104
Annual report and accounts 2023
Plc Board
Group ESG Committee
Group Chief Executive
Group ESG Committee
Responsible for the day-to-day
management of the Group.
Responsible (with the Group
Risk Committee) for overseeing
climate risk assessment and
other aspects of the Group’s
ESG agenda
Tracks and monitors the delivery
of the Group-wide ESG targets
which are aligned to the nine UN
Sustainable DevelopmentGoals.
Chair: Group Legal Director &
Company Secretary
Key executive management committee of the Group
Responsible for the day-to-day management of the Group
Oversees the development and implementation of strategy, capital
expenditure, and investment budgets, for the ongoing review
and control of Group risks, reporting on these areas to the Board
forapproval
Implements Group policy
Monitors financial and operational performance of the Group and other
specific matters delegated to it by the Board.
Chair: Group Chief Executive
Composition: Group Chief Financial Officer, the Heads of the Principal
Businesses, and the Group Legal Director & Company Secretary
Identifies and evaluates Group-level risks
Reviews and challenges risks reported by subsidiaries
Champions the ongoing Group-wide development of risk management
and the internal controls framework
Monitors Internal Audit and other sources of assurance on the
effectiveness of internal controls
Reviews ESG risk, including but not limited to TCFD-related items and
these are escalated as appropriate.
Group Executive Board
Group Risk Committee
105
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIVISION OF RESPONSIBILITIES continued
Roles on the Board
The Board comprises Executive and Non-Executive Directors, such that no one individual or small group of individuals
dominates the Board’s decision-making. The Non-Executive Directors are all deemed to be independent. To help
ensure a proper dialogue with all Directors, the Chair meets periodically with the Directors individually and the Non-
Executive Directors as a group (and without the Executive Directors). The division of responsibilities between the
various roles of the Board members is detailed below, demonstrating a clear division between the role of the Board
and executive management. The role descriptions of the Chair, Group CEO and Senior Independent Director are
reviewed annually by the Board and are updated as necessary to reflect changes in legislation or best practice.
Roles and Responsibilities of the Directors:
Non-
Executive
Chair
Nicholas
Ferguson (until
31 December
2023; Stacey
Cartwright with
effect from
1January 2024)
The roles of Chair and Group Chief Executive are distinct and separate and their roles
and responsibilities are clearly established.
The Chair is responsible for:
leading the Board and its overall effectiveness;
demonstrating objective judgement;
promoting a culture of openness and constructive challenge and debate between
allDirectors;
facilitating constructive Board relations and the effective contribution of all Non-
Executive Directors; and
ensuring Directors receive accurate, clear and timely information.
To help ensure a proper dialogue with all Directors, the Chair meets periodically with
the Directors individually and the Non-Executive Directors as a group (and without
theExecutive Directors).
Group Chief
Executive
Officer
Mark Ridley The Group Chief Executive has responsibility for all Group businesses and acts in
accordance with the authority delegated by the Board. There are a number of areas
where the Board has delegated specific responsibility to management, including
responsibility for the operational management of the Group’s businesses as well as
reviewing strategic issues and risk matters in advance of these being considered by
theBoard and/or its Committees.
Group Chief
Financial
Officer
Simon Shaw The Group Chief Financial Officer supports the Chief Executive in developing and
implementing the Group’s strategy.
leads the global finance function and develops key finance talent;
ensures effective financial reporting, processes and controls are in place;
recommends the annual budget and long-term strategic and financial plan; and
chairs the Group’s Proptech investment ‘fund’, Grosvenor Hill Ventures.
Independent
Non-
Executive
Directors
Philip Lee
Richard Orders
Dana Roffman
Marcus Sperber
Florence Tondu-
Mélique
John Waters
Monitor and challenge the performance of management;
assist in approval and review of strategy;
review Group financial information and provide advice to management;
engage with stakeholders and provide insight as to their views, including in relation to
employees and the culture of the Group; and
as part of the Nomination & Governance Committee, review the succession plans for
the Board and key members of senior management.
Senior
Independent
Non-
Executive
Director
Stacey
Cartwright to
31December
2023; with effect
from 1 January
2024 Richard
Orders
Provides a sounding board for the Chair and acts as a trusted intermediary for the
Directors as required; and is available to respond to Shareholder concerns when
contact through the normal channels is inappropriate.
Group Legal
Director &
Company
Secretary
Chris Lee The Group Legal Director & Company Secretary, whose appointment is a matter
reserved for the Board, is responsible for advising and supporting the Chair and the
Board on company law and corporate governance matters and for ensuring that Board
procedures are followed, as well as ensuring that there is a smooth flow of information
to enable effective decision-making.
The Group Legal Director & Company Secretary is further responsible for ensuring that
the Directors receive regular updates on developments in legal and regulatory matters.
All the Directors have access to the advice and services of the Group Legal Director
& Company Secretary and through him have access, if required, to independent
professional advice in respect of their duties at the Company’s expense.
Division of the Responsibilities continued
106
Annual report and accounts 2023
Board composition
In line with the requirements of the Code, the Board
comprises a majority of Independent Non-Executive
Directors. The Nomination & Governance Committee
considers the independence of the Non-Executive
Directors annually, having regard to the independence
criteria set out in the Code. As part of this process, the
Board keeps under review the length of tenure of all
Directors, which can affect independence. We believe the
Board’s composition gives us the necessary balance of
diversity, skills, experience, independence and knowledge
to ensure we continue to run the business effectively
and deliver sustainable growth. Further details regarding
diversity are on page 114 and our Diversity and Inclusion
strategy can be found on pages 50 to 54.
The biographical details of the Directors can be found
on pages 86 to 88 which show the breadth of their skills
and experience, why their contribution is important to
the Company’s long-term sustainable success, and their
membership of the Board’s various Committees.
Independence of Non-Executive Directors
The Chair is committed to ensuring the Board comprises
a majority of Independent Non-Executive Directors who
objectively challenge management, balanced against the
need to ensure continuity on the Board. On an annual
basis, the Board reviews the independence of its Non-
Executive Directors. Non-Executive Directors (‘NEDs’)
are expected to exercise independent judgement and to
be free from any business or other relationship that could
materially interfere with it. This independence is crucial
in bringing constructive challenge to the Group CEO
and management at Board meetings, while providing
support and guidance to promote meaningful discussion
and, ultimately, informed and effective decision-making.
Directors are required to provide sufficient information
to allow the Board to evaluate their independence
prior to and following their appointment. The Board
considers that all of the Non-Executive Directors bring
considerable expertise, strong independent oversight
and are Independent Non-Executive Directors, being
independent of management and having no business or
other relationship which could interfere materially with
the exercise of their judgement.
Outside interests and conflicts
The Board has adopted guidelines for dealing with
conflicts of interests. All potential new Directors are
asked to disclose their other significant commitments.
The Nomination & Governance Committee takes this into
account when considering proposed appointments to
ensure that Directors can discharge their responsibilities
to the Group effectively. This means not only attending
and preparing for formal Board and Committee
meetings, but also making time to understand the
business, and to undertake training.
The time commitment is agreed with each Non-
Executive Director on an individual basis. In addition,
all Directors must seek approval before accepting any
significant new commitment. The Board is satisfied
that the Chair and each of the Non-Executive Directors
committed sufficient time during the year to enable them
to meet their Board responsibilities and fulfil their duties
as Directors of the Company.
For the year ended 31 December 2023 and as at the
date of publication of this Annual Report, the Board is
satisfied that none of the Directors is over-committed
and that each of the Directors allocates sufficient
time to his or her role in order to discharge their
responsibilitieseffectively.
Indemnification of Directors
In accordance with the Company’s Articles of
Association, and to the extent permitted by law, the
Directors and the Group Legal Director & Company
Secretary are granted an indemnity, in respect of any
liabilities incurred as a result of their holding office.
Suchindemnities were in force during the financial year
to 31 December 2023 and up to the date of this Report.
The Company also maintains appropriate insurance
cover in respect of legal action against its Directors
andOfficers.
Conflicts of interest procedure
The Companies Act 2006 places a duty on each Director
to avoid a situation in which he or she has or can have a
direct or indirect interest which conflicts or may conflict
with the interests of the Company. A Director will not
be in breach of that duty if the relevant matter has been
authorised by the other Directors in accordance with
the Company’s Articles of Association. Procedures are in
place for the disclosure by Directors of any interest that
conflicts, or possibly may conflict, with the Company’s
interests and for the appropriate authorisation to be
sought if a conflict arises. The Board, or the Nomination
& Governance Committee on its behalf, reviews actual
and situational conflicts of interest at least annually and
as necessary if and when a new potential situational
conflict is identified or a potential conflict situation
materialises. During 2023, the actual and situational
conflicts of interest that were identified by each Director
were reviewed and authorised by the Board, subject to
appropriate conditions in accordance with the guiding
principles. The procedures adopted to deal with conflicts
of interest continue to operate effectively and the
Board’s authorisation powers continue to be exercised
properly in accordance with the Company’s Articles
ofAssociation.
107
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
COMPOSITION, SUCCESSION AND EVALUATION
What the Board did in 2023
The Board met eight times during the year to consider the items noted below.
The Board’s principal actions during 2023 were to consider and reconfirm the Group’s growth plans and those of the Principal
Businesses; to approve material transactions, specifically the acquisitions of BeLiving; Nash Bond and Predibisa; and strategic
recruitments across the Group; and to confirm the Group’s net carbon zero targets. One of the Board’s meetings during the
year was specifically devoted to the review of the Group’s strategy. The key areas of Board activity during the year are set out
as follows:
Area of Focus Board Activity
Leadership
andPeople
Reviewed the composition and performance of the Board and its Committees
Strategy Monitored the performance and growth of the Group’s Principal Businesses
Held the annual strategy review to consider in depth and reconfirm the Group’s strategy
Considered and approved the following growth initiatives consistent with the Group’s
strategicplan
Internal Control
and Risk
Management
Reviewed and confirmed the principal existing and emerging risks and uncertainties facing the
Group which are described in detail on pages 30 to 36
Reviewed the Group’s risk register and the effectiveness of the systems of internal control and
risk management
Received updates on the risk and internal control environments within the Group’s Asia Pacific,
North American, CEME and UK businesses and Savills InvestmentManagement
Governance Received updates on regulatory and governance developments
Received regular reports in relation to material legal matters
Reviewed and discussed the evaluation of the performance of the Board, its Committees and
individual Directors to ensure that they continued to be effective in support of Group strategy,
policy and practice
Considered and approved situational, and if they arose, actual conflicts of interest
Considered issues raised through the Group’s confidential reporting (‘Speak-up’)channels
Reviewed and approved the Company’s 2023 Modern Slavery Statement
Financial
Management
Reviewed the 2024-2026 Group Business Strategy and approved the 2024 Plan
Reviewed business, profit and cash management performance, and in each case, assessed
performance in these areas against the Group’s strategy, objectives and business plans to ensure
that the financial returns generated by the Group’s businesses were applied to the creation
of additional value, costs were controlled and that resources could be made available at the
appropriate time to realise businessopportunities
Considered and approved the 2023 Going Concern and Viability Statements
Reviewed and approved the Company’s 2024 Tax Strategy
Approved the 2023 annual and half-year results and trading updates, and accounting policies
so as to ensure that communication with the Group’s Shareholders was fair, balanced and
understandable; and, subject to Shareholder approval, the appointment and the remuneration of
the External Auditor
Stakeholder
Engagement
Received and considered investor feedback collated by the Company’s corporate brokers from
road-shows, presentations and meetings between investors and the Group Chief Executive and/
or Group Chief Financial Officer
Received updates on workforce engagement during the year
Received regular client feedback from the Group Chief Executive
108
Annual report and accounts 2023
Board and Committee meetings Key announcements
January Main Board
Remuneration Committee
Group Executive Board
February
March Main Board
Audit Committee
Remuneration Committee
Nomination & Governance Committee
Results for year ended 31 December 2023
April Group Executive Board Annual Report 2023 and Notice of AGM
May Main Board
AGM
Trading Statement
Published results of 2024 AGM
Recommended 2022 final dividend
June Main Board
Audit Committee
July Group Executive Board
August Main Board
Audit Committee
Nomination & Governance Committee
Half-year results & 2023 interim dividend
Announced that Stacey Cartwright would
become Chair effective 1 January 2024 on the
retirement of Nicholas Ferguson from the Board
October Group Executive Board
Audit Committee
November Main Board
Main Board strategy day
Nomination & Governance Committee
December Main Board
Audit Committee
Remuneration Committee
Group Executive Board
Appointment of NED and with effect from
1January 2024 Audit Chair John Waters
109
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
COMPOSITION, SUCCESSION AND EVALUATION continued
Nomination & Governance Committee Report
Stacey
Cartwright
Chair
The Nomination & Governance
Committee (‘Committee’) has a key role
to play in ensuring that the Board and
its principal Committees have the right
mix of skills, experience and diversity
to deliver Group strategy and to create
value. The Committee keeps under
review and evaluates the composition
of the Board and its Committees to
maintain the appropriate balance of skills,
knowledge and independence to be able
to functioneffectively.”
Dear Shareholder
On behalf of the Board, I am pleased to present the
Nomination & Governance Committee’s Report for the
financial year ended 31 December 2023. The Committee’s
principal role is to lead a formal, rigorous and transparent
process for Board appointments and ensure that plans
are in place for orderly succession at Board and senior
management level. It keeps the leadership needs of
the organisation under review, with a view to ensuring
the continued ability of the organisation to compete
effectively in the marketplace.
The Committee has continued to focus on succession
planning, and within this further seeking to facilitate
greater diversity and inclusion at Board and senior levels
with specific focus below this level. In this regard Board
membership is compliant with the FTSE Women Leaders
and Parker guidelines, and the proportion of women in
senior leadership positions (as defined by FTSE Women
Leaders) as at October 2023 was 37.1% (2022: 36.5%).
The Committee will continue to ensure the Board has in
place an effective leadership with the skills, experience
and diversity to match our strategic aims and ambition.
Stacey Cartwright
Chair of the Nomination & Governance
Committee
13 March 2024
Nicholas Ferguson (Chair* until his retirement on
31December 2023)
Stacey Cartwright (Chair* with effect from
1January 2024)
Philip Lee
Richard Orders
Mark Ridley (Executive Director)
Dana Roffman
Marcus Sperber
Florence Tondu-Mélique
John Waters (with effect from 13 December 2023)
COMMITTEE MEMBERS
110
Annual report and accounts 2023
* Save in circumstances where the Chair’s succession is considered.
The primary objectives of the Committee are:
to review the size and composition of the Board
and its key Committees and to plan for the
Board’s progressive refreshing, with regard to
balance and structure
to monitor the Company’s compliance with
applicable codes and other requirements of
corporate governance including the Code.
Responsible for size, structure and composition
of the Board
Reviewing and progressing appointments to
theBoard
Responsible for succession planning at Board
and senior management level to ensure that (i)
the Board is refreshed progressively such that
the balance of skills and experience available
to the Board remains appropriate to the needs
of the business; and that (ii) the Group has the
necessary bench-strength of talent to ensure
seamless succession at senior management level
Makes recommendations to the Board on the
membership of the principal Committees of
theBoard
Monitoring of the Company’s compliance with
applicable codes and other requirements of
corporate governance.
More detailed information on the role and
responsibilities of the Committee can be found
inthe Committee’s Terms of Reference which can
be accessed on the Company’s website at
http://ir.savills.com
The Committee has standing items that it considers
regularly under its Terms of Reference; for
example, the Committee reviewed its own Terms of
Reference (which are reviewed at least annually or
as required, eg to reflect changes to the Code or as
a result of changes in regulations or best practice).
Specifically during the year, the Committee:
Considered the proposed reappointment of
the Non-Executive Directors, before making a
recommendation to the Board that each Non-
Executive Director be proposed to Shareholders
for re-election at the 2024 AGM
Led the process to appoint a new Chair which
resulted in Stacey Cartwright being appointed
as Chair of the Company from 1 January 2024
on the retirement of Nicholas Ferguson from
theBoard
Led the process which resulted in the
appointment of John Waters to the Board.
KEY OBJECTIVES
MAIN RESPONSIBILITIES
PRINCIPAL ACTIVITIES DURING THE YEAR
111
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
COMPOSITION, SUCCESSION AND EVALUATION continued
The Committee met three times during 2023. Individual
attendance by Directors at this meeting is shown in
the table on page 93. Members of the Committee also
normally attend the Company’s AGM at which there is
an opportunity to meet with Shareholders. Any other
Director, the Group Legal Director & Company Secretary
or an external advisor may be invited by the Committee
to attend the meetings from time to time, as appropriate.
Changes to the Board and Committees
During the year to 31 December 2023, there were the
following changes to the Board:
Stacey Cartwright was appointed Chair with effect
from the date of the retirement of Nicholas Ferguson
on 1 January 2024
John Waters was appointed as an additional
Independent Non-Executive Director on 13 December
2023, and replaced Stacey Cartwright as Chair of the
Audit Committee with effect from 1 January 2024
Richard Orders replaced Stacey Cartwright as
the Senior Independent Director with effect from
1January 2024.
Succession planning
The Board and Committee remain focused on talent
planning, and the development of a diverse succession
pipeline and Board succession is a key topic at Committee
meetings. Board and senior management succession
plans, which are based on merit and are assessed against
objective criteria, are reviewed annually by the Committee.
The Committee monitors the length of tenure and the
skills and experience of the Non-Executive Directors to
assist in succession planning. The Committee continues to
keep the Board’s composition under review and considers
how that composition might be enhanced to ensure
that the Board continues to best meet the needs of the
Company and its Shareholders. The biographies of the
Board members appear on pages 86 to 88.
The Committee will continue to monitor the needs of
theBoard and its Committees in the context of the
delivery of the Group’s strategy, with the aim of ensuring
that the Group’s succession planning policy evolves
such that there is an identifiable supply of talent and
experience available to the Board and its Committees
from which to select successors.
No Director is involved in decisions regarding his or
her own succession. The Committee also monitors
the development of the executive team below the
Board to ensure that there is a diverse supply of senior
executives and potential future Board members with
theappropriate skills and experience.
Recruitment and election procedures
Chair Succession
Following the announcement in March 2023 that
Nicholas Ferguson would be retiring as Chair at the end
of the year, the Company commenced a rigorous search
to find a successor. On 10 August 2023, the Company
announced the appointment of Stacey Cartwright as
Chair with effect from 1 January 2024. Inaccordance
with its Terms of Reference, the Nomination &
Governance Committee led the process.
Heidrick & Struggles were appointed to conduct a
candidate search, based on a clear brief and the search
entailed creating a longlist of potential candidates from
which a shortlist was developed. This was further reduced
and the extensive evaluation process included detailed
interviews on a one-to-one basis with both Richard
Orders, NED and Mark Ridley Group CEO to understand
clearly what each candidate could bring to the role as
Chair, their approach to challenges that the business
may face in the future, as well as how they would see
the relationship working between Chair and Group CEO.
Following this process, the Committee was unanimous in
its recommendation to the Board that Stacey Cartwright
be appointed as Chair of the Group with effect from
1 January 2024. Heidrick & Struggles has no other
connection with the Group and is a signatory to the
Voluntary Code of Conduct of Executive Search Firms.
Nomination & Governance Committee Report
continued
112
Annual report and accounts 2023
Search for an additional NED
The Board recognises the benefit of progressively refreshing its membership and therefore commenced the search for
an additional Independent Non-Executive Director in September 2023. Before making this appointment, the Committee
assessed the balance of skills, knowledge, independence, experience and diversity of the Board and, in view of this
assessment, drew up a description of the role and competencies needed, which included the necessary financial experience
to chair the Audit Committee with effect from 1 January 2024, with a view to appointing the best-placed individual for
the role. In making a recommendation to the Board on a Non-Executive Director appointment, the Committee specifically
considered the expected time commitment of the proposed Non-Executive Director and other commitments they might
already have.
The Committee led the process which resulted in the appointment of John Waters to the Board. The Committee
assessed the balance of skills, knowledge, independence, experience and diversity of the Board and, in view of this
assessment, a description of the role and competencies needed was agreed, with a view to appointing the best
qualified individual for the role. Heidrick & Struggles was selected to lead the search due to its specialist knowledge
ofrecruiting at Board-level.
Recruitment Consultants Heidrick & Struggles provided a longlist of potential candidates and first-stage interviews
were led by the Chair of the Committee. In making the recommendation to the Board on the proposed appointment,
the Nomination & Governance Committee specifically considered the expected time commitment of the proposed
Non-Executive Director and the other commitments that they already had. A final shortlist of candidates was
selected for final-stage interviews with the Chair, Group Chief Executive Officer and Senior Independent Director.
The Committee was unanimous in their recommendation to the Board that John Waters be appointed as additional
Independent Non-Executive Director, and was delighted to welcome John to the Board on 13 December 2023. John
was also appointed Chair of the Audit Committee with effect from the date of Stacey Cartwright’s appointment as
Chair effective 1 January 2024.
Details of the different stages of the appointment process that the Committee followed in relation to the appointment
process of Stacey and John is set out below:
Step 1 Step 2 Step 3 Step 4 Step 5
Engaged with Heidrick
& Struggles and
provided them with a
search specification
Shortlisting of
candidates by the
Committee
Interview process with
Committee Members
Recommendation
to the Board of the
chosen candidate
Appointment terms
drafted and agreed
Stacey Cartwright’s biography
See page 86.
John Waters’ biography
See page 88.
113
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
COMPOSITION, SUCCESSION AND EVALUATION continued
Director reappointment
All Non-Executive Directors undertake a fixed term of
three years subject to annual re-election by Shareholders.
The fixed term can be extended, and consistent with
best practice, would not go beyond nine years unless
exceptional circumstances were deemed to exist.
The current length of tenure for the Chair and each of
the Non-Executive Directors as at 31 December 2023 is
set out on pages 86 to 88.
In accordance with the 2018 UK Corporate Governance
Code (the ‘Code’), all of the Directors will stand for
election/re-election as appropriate at the 2024 AGM
on 15 May 2024. The Board reviews Non-Executive
Director independence on an annual basis and takes into
account the individual’s experience, their behaviour at
Board meetings and their contribution to unbiased and
independent debate. The Board considers that all of the
Non-Executive Directors bring considerable management
expertise and strong independent oversight.
Diversity
Board and Group Diversity
At Board level, the approach to appointing new Directors
reflects the Committee’s objective of ensuring that there
is always an appropriate balance of experience and
backgrounds on the Board. Great emphasis is placed
on ensuring that Board membership embodies diversity
in its broadest sense. For this reason, members of
the Board are drawn from a wide range of disciplines,
industries and cultures. As an international business, we
benefit from our Non-Executive Directors’ knowledge
of and involvement with other businesses across Asia,
Europe and the UK and North America.
As reported on page 85, the FCA’s Listing Rules now
setboard diversity targets that at least 40% of the board
are women, at least one of the roles of CEO, CFO, Chair
and SID is held by a woman, and at least one director is
from a minority ethnic background. The Company has
metall of the above targets, except the target to have
40% of Board membership represented by women. As
at the date of this report women represented 33% of the
Board’s membership. The Company expects to comply
with this requirement by theend of 2024.
The benefits of diversity, in terms of age, ethnicity, skills,
experience and socio-economic background are an
active consideration in all recruitment decisions, as well
as in our talent development programme.
The Committee is responsible for overseeing the
development of a diverse pipeline for succession to
senior management. The Board has a longstanding
commitment to prioritise diversity and supports the
FTSE Women Leaders Review on gender diversity and
the Parker review on ethnic diversity. From a gender
perspective, we are pleased to have seen the positive
benefits of this approach, with women representing 33%
of the Board’s membership in 2023.
For the purposes of complying with the requirements of
the Code Provision 23, Senior Management is defined as
the Group Executive Board (‘GEB’). As at 31 December
2023 the GEB members and their direct reports totalled
196 of which 40 were female, 157 were male. Accordingly,
our Group Women in Leadership percentage
(determined in accordance with the FTSE Women
Leaders Review criteria) was 37.1% as at 31October
2023. Our previous year Group Women in Leadership
percentage as reported by the FTSE Women Leaders
Review was 36.5% (as at 30 October 2022).
In respect of ethnic diversity, the Board’s composition is
in accordance with the Parker Review recommendation
that at least one Director is from an ethnic minority
background by 31 December 2024.
The Committee noted considerable progress being made
to increase gender diversity, and the structured and
broad approach and actions being taken, which varied
based on geography and culture.
The Committee supports the initiatives taking place across
the Group’s businesses to improve diversity, including
work to further strengthen the pipeline of women
through a managed career path and improved access
to opportunities. More details on the Group’s diversity
and inclusion initiatives can be found on pages 50 to 54.
Information on Board and Executive Committee gender
and ethnicity can be found on page 85.
Nomination & Governance Committee Report
continued
114
Annual report and accounts 2023
In line with best practice, the performance and effectiveness of the Board and its Committees is assessed annually
through a formal performance evaluation process. In accordance with the Code requirements, the Board believes that
an external independent evaluation of Board effectiveness and performance, and that of its principal Committees, at
least every three years brings further insight into its performance. As well as looking to continually improve the Board’s
processes, the evaluation process is used to reflect on areas that the Board would like to see more focus on.
Board and Committee evaluation
The Board recognises that it continually needs to
monitor and improve its performance. In line with the
effective governance requirements of the Code, the
Board reviews its own performance and that of the
Directors and of its Committees annually.
2023 process
This year’s evaluation was conducted in-house, led
by Stacey Cartwright and facilitated by the Group
Legal Director & Company Secretary. The evaluation
undertaken involved each Board member completing
a questionnaire which was then used as the basis of
a confidential interview. The matters covered by the
evaluation included Board structure, Board effectiveness,
working practices, relationships with Shareholders and
interaction between Board members and management.
The output of the evaluation was presented to the Board
in March 2024 and the Directors discussed the points
raised by the review.
Conclusion from the 2023 evaluation
The conclusion from this year’s evaluation was that the
Board and its Committees continued to operate to a high
standard and continued to provide effective leadership
and exert the required levels of governance and control.
In particular, Board members considered that the
Board was now stronger in terms of diversity of
gender, experience, geography and background and
continued to contribute strongly to the development
and implementation of the Group’s strategy. Board
members also agreed that the Board was an open and
constructive forum and was focussed on the right issues,
striking a good balance between future thinking and
assurance. The Board’s Committees were also considered
to be continuing to work well, and were well-chaired
andsupported.
Areas of focus for 2024
Reflecting the output from the 2023 Board Evaluation,
the additional areas for Board focus, which would be
added to the Board’s 2024 workplan, were agreed
asfollows:
a. Ensuring that the Board had good exposure to the
wider stakeholder group, particularly to those people
below senior management to ensure that the non-
executive directors had visibility of the issues across
the business
b. Ensuring that the Board continued to meet with the
Company’s external brokers at least once a year to
ensure undertaking of market and Shareholder views
c. Strengthening the links between the Board and the
business by expanding the exposure to the Group’s
next level of management
d. Further broadening the experience of the Board
through the appointment of an additional independent
NED with a strong technology background
Board and Committee Evaluation
2021 Internal
Board Evaluation
2023 Internal
Board Evaluation
2022 External
Board Evaluation
115
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
COMPOSITION, SUCCESSION AND EVALUATION continued
Board and Committee Evaluation continued
As a result of the evaluation, the Board considers
the performance of each Director to be effective and
concluded that both the Board and its Committees
continue to provide effective leadership and exert the
required levels of governance and control. Shareholders
would therefore be recommended to re-elect Board
Members at the AGM inMay.
Following this review, we are satisfied that the Board
continues to perform effectively and in particular are
confident that the Board has the right balance of skills,
experience and diversity of personality to continue to
encourage open, transparent debate and challenge.
Board induction, training and development
Following appointment, all Directors receive a
comprehensive and tailored induction programme.
Induction programmes are facilitated by the Chair and
the Group Legal Director & Company Secretary and
tailored to the Director’s individual roles and needs.
Theinduction process is designed to develop the
Director’s knowledge and understanding of the Group
covering key areas including the Group’s purpose, values,
culture and strategy, its corporate governance, risks and
internal controls and the markets in which it operates.
New Directors are also provided with information
on relevant share dealing policies, Directors’ duties,
Company policies and governance.
The induction also includes one-to-one briefings
from theHeads of the Principal Businesses and an
introduction to each Group business’s development
strategy with the content of meetings varying
dependingon the Director being inducted and their
background and individualexperience.
Our induction programme for new Directors is
deliveredthrough:
meetings with the Chair, wider Board, Group
Legal Director & Company Secretary and relevant
Committee Chairs;
a structured programme of meetings with the Group
Executive Board members and senior management
to provide a deeper understanding of risks and
opportunities and stakeholder interests;
meetings with advisors, including the External
Auditor, to provide a valuable external
perspective;and
training as appropriate on key policies, statutory
duties and legal and governance requirements.
To enable the Board to discharge its duties, all Directors
receive appropriate and timely information, including
briefing papers distributed in advance of Board
meetings. The Board strongly supports the ongoing
development of its members and any Director can
request further information to support the fulfilment
of their individual duties or collective Board role and
throughout the year.
Governance
The Committee reviewed the Company’s compliance
with the Code and was satisfied that the Company
complied with the Code. The Committee will continue to
receive updates on corporate governance developments
and will consider the impact of those developments on
the Company.
Stacey Cartwright
Chair of the Nomination & Governance
Committee
13 March 2024
116
Annual report and accounts 2023
The principal existing and emerging risks and
uncertainties faced by the Group and the associated
mitigating actions for these are set out on pages
30to36.
The Board, assisted by the Audit Committee, is
responsible for reviewing the operation and effectiveness
of the Group’s internal controls. The internal control
system is designed to manage rather than eliminate the
risk of failure to achieve business objectives and can
provide only reasonable and not absolute assurance
against material misstatement or loss.
The Board is also responsible for ensuring that
appropriate systems are in place to enable it to identify,
assess and manage key risks. This responsibility
includes the determination of the nature and extent
of the principal risks the Board is willing to take to
achieve its strategic objectives and for ensuring that an
appropriate culture has been embedded throughout
the organisation. The Board’s attitude and appetite to
risk is communicated to the Group’s businesses through
thestrategy planning processes.
AUDIT, RISKS AND INTERNAL CONTROLS
Review of the effectiveness of the risk
management and internal control systems
The Board is supported by the Audit Committee in
discharging its oversight duties with regard to internal
control and risk management. During the year, the
Audit Committee on behalf of the Board, reviewed the
effectiveness of the risk management systems and
internal control systems, including financial, operational
and compliance controls. The Board did not identify
any significant failings or weaknesses in the year. Taking
into account the principal existing and emerging risks
and uncertainties set out on pages 30 to 36, and the
ongoing work of the Audit Committee in monitoring
the risk management and internal control systems on
behalf of the Board, the Board remains satisfied that the
review of internal controls did not reveal any significant
weaknesses and they continue to operate effectively.
117
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
John
Waters
Chair of
the Audit
Committee
I am pleased
to present the
AuditCommittee’s
report for the
financial year ended
31December 2023.”
On 13 December last year I became a Non-Executive
Director and became Chair of the Audit Committee on
Stacey Cartwright’s appointment as Chair on 1 January
2024. On behalf of the Audit Committee, I would like to
record the Committee’s thanks to Stacey for her work for,
and guidance of the Committee during her time as Chair.
This report seeks to provide insight into the Committee’s
activities in the year and sets out how it has performed
against its key objectives and how the Committee has
met the disclosure requirements as set out in the Code.
In particular this report provides an overview of the
Committee’s major considerations and work during
the year in ensuring that the Company’s governance
processes and reporting procedures remain appropriate,
robust, of a high standard and are rigorously applied.
Thekey matters considered in the year are set out
onpage 122.
The Audit Committee has discharged its responsibilities
over the year by providing effective independent
oversight, with the support of management and the
External Auditor. During the year, the Committee
continued to play a key role in assisting the Board in its
oversight of financial reporting and auditing matters,
including reviewing and monitoring the integrity of the
Group’s Financial Statements, the Group’s systems of
internal control and risk management, and the internal
and external audit processes. The Committee, and its
individual members, seek to act in a way to promote the
success of the Company for the benefit of its members
as a whole, including Shareholders, in accordance with
s.172 of the Companies Act 2006.
AUDIT, RISKS AND INTERNAL CONTROLS continued
Audit Committee Report
Stacey Cartwright
(Chair and member until 31 December 2023)
Philip Lee
Florence Tondu-Mélique
Marcus Sperber
John Waters
COMMITTEE MEMBERS
118
Annual report and accounts 2023
This ensures that the interests of the Group’s
Shareholders, and broader stakeholders, are properly
considered and reflected in the Committee’s decision-
making processes.
As outlined on page 121, the Committee met five times
during the year. The detail of attendance is found on
page 121.
In 2023, the Committee considered the effectiveness of
the Group’s internal controls and reviewed the Group’s
principal risks and uncertainties, to ensure the alignment
of these with the Company’s strategic objectives and risk
appetite. It monitored the effectiveness of the control
environment through the review of reports from Internal
Audit, management and the External Auditor and
ensured the quality of the Company’s financial reporting
by reviewing the 2023 Half-Year Financial Statements
and the year’s Annual Report and Accounts.
One of the Committee’s key responsibilities is to
confirm to the Board that it is satisfied that the
Annual Report and Accounts are fair, balanced and
understandable taken as a whole, and to provide the
information necessary for Shareholders to assess the
Company’s position, performance, business model and
strategy. In doing so, the Committee considers whether
management’s disclosures reflect the supporting
detail, or challenge management to explain and justify
their interpretation and, if necessary, re-present the
information. The External Auditor supports this process
in the course of its statutory audit by auditing the
Group’s accounting records against agreed accounting
practices, relevant laws and regulation. The External
Auditor’s report can be found on pages 156 to 165.
Following this review and challenge process, the
Committee was pleased to advise the Board that the
2023 Annual Report and Accounts is fair, balanced and
understandable and that the Directors have provided
the necessary information for Shareholders to assess the
Group’s position, prospects, business model and strategy.
This review and challenge process is described in further
detail on pages 123 and 124.
The Committee also considered the viability and going
concern statements and their underlying assumptions.
Following consideration, the Committee agreed with
management’s proposal that the Company’s long-term
Viability Statement should continue to cover a three-year
period (see page 37), that management had conducted
robust viability and going concern assessments and
recommended the approval of the Viability and Going
Concern Statements to the Board. The Committee will
continue to monitor changes in regulation and focus
on the audit, assurance and risk processes within the
Principal Businesses. The Committee considered its
compliance with the Code andthe FRC Guidance on
Audit Committees. The Committee believes that it has
addressed both their spirit and requirements.
The performance of the Audit Committee was again
evaluated this year and I am pleased to note that
feedback from Directors indicated strong satisfaction
with the Committee’s performance.
The Committee remains committed to continuing to
discharge its duties effectively and diligently in 2024.
John Waters
Chair of the Audit Committee
119
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
AUDIT, RISKS AND INTERNAL CONTROLS continued
How the Committee operates
Membership
The Committee is a fundamental element of the
Company’s governance framework. The Committee is
chaired by John Waters. Stacey Cartwright, Philip Lee,
Florence Tondu-Mélique and Marcus Sperber, all of whom
are Independent Non-Executive Directors, were members
of the Committee during the year. John Waters, who was
appointed to the Board and Committee as an additional
Independent Non-Executive Director on 13 December
2023, became Chair of the Audit Committee from
1January 2024 when Stacey Cartwright became Chair of
the Company. Members of the Committee are appointed
by the Board following recommendations by the
Nomination & Governance Committee and membership
is reviewed annually by the Nomination & Governance
Committee as part of the annual Board performance
evaluation. As at 31 December 2023 and up to the
date of this report, the Committee comprised entirely
Independent Non-Executive Directors. The members
of the Audit Committee have been selected to provide
the wide range of financial and commercial experience
needed to undertake its duties and each member of
the Audit Committee brings an appropriate balance of
financial and commercial experience, combined with a
sound understanding of the Company’s business, and is
therefore considered by the Board to be competent in
the Company’s sector. The expertise and experience of
the members of the Audit Committee are summarised
onpages 86 to 88.
The Board considers that each member of the
Committee is independent within the definition set
out in the Code and is capable of assessing the work
of management and the assurances provided by the
Internal and External Audit functions. The Board also
considers that John Waters, as Chair of the Committee,
possesses significant, recent and relevant financial
experience and that all Committee members have
relevant financial experience as required by the Code.
All members of the Committee receive an appropriate
induction, which includes an overview of the business,
its financial dynamics and risks, and meetings with
senior management. Committee members are expected
to have an understanding of the principles of, and
recent developments in, financial reporting, including
the applicable accounting standards and statements of
recommended practice, key aspects of the Company’s
policies, financing, internal control mechanisms, and
matters that require the use of judgement in the
presentation of accounts and key figures as well as
therole of Internal Audit and the External Auditor.
Objective
The objective of the Committee is the provision of
effective governance over the appropriateness of
financial reporting of the Group, including the adequacy
of related disclosures, the performance of both the
Internal Audit function and the External Auditor and
oversight of the Group’s systems of internal control,
business risks and related compliance activities.
Audit Committee Report continued
Responsibility for assisting the Board in fulfilling
its financial and risk responsibilities
Advising the Board on various statements
made in the Annual Report including those
on Viability, Going Concern, risks and controls
and in particular for ensuring that the
Financial Statements are fair, balanced and
understandable
Overseeing external financial reporting, internal
controls, risk management and reviews the
work of the Internal and External Auditors
Advising the Board on the appointment of the
External Auditor
Considering significant judgements,
assumptions and estimates made by
management in the financial statements.
The Committee is authorised to investigate any
matter within its Terms of Reference (a copy of
which can be found in the governance section
of the Company’s website at http://ir.savills.
com and which are reviewed at least annually
orasrequired).
The Committee has access to the services of the
Group Legal Director & Company Secretary and,
where necessary, the authority to obtain external
legal or other independent professional advice to
fulfil its duties.
The Committee’s key role is to assist the Board
in discharging its duties and responsibilities
for financial reporting, internal control, the
effectiveness of the risk management process and
in making recommendations to the Board on the
appointment of the External Auditor.
The Committee is responsible for the scope and
results of the external audit work, the related
fees and cost effectiveness and for ensuring the
independence and objectivity of the External
Auditor including the approval of the level of
provision of non-audit services.
The remuneration of the members of the
Committee and the policy with regard to the
remuneration of the Non-Executive Directors
areset out on pages 127 to 150.
MAIN RESPONSIBILITIES
ROLE OF COMMITTEE
120
Annual report and accounts 2023
Meetings held
The Committee meets at least five times per year and has an agenda planner linked to events in the Company’s
financial calendar and other matters that arise throughout the year, which fall for consideration by the Committee
under its remit. The Committee Chair agrees the meetings and agendas for each meeting.
There were five scheduled Committee meetings held during the year (with two of these meetings focused on matters
relating to the half-year and full-year reporting). The Committee reports to the Board after each Committee meeting.
Attendance at meetings during 2023 is shown in the table below:
Committee member Member since
Meetings
attended
Meetings
eligible to
attend
Stacey Cartwright* October 2018 5 5
Philip Lee January 2021 5 5
Florence Tondu-Mélique October 2018 5 5
Marcus Sperber December 2022 4 5
John Waters** January 2024 – –
* Member until 31 December 2023.
** Member since 1 January 2024.
How the Committee keeps up to date
The Committee is kept up to date with changes to Accounting Standards and relevant developments in financial
reporting, company law and the various regulatory frameworks through presentations from the Group’s External
Auditor, Group Chief Financial Officer, and Group Legal Director & Company Secretary. The Committee also receives
tailored briefings from management and the Group’s External Auditor from time to time. The Terms of Reference
of the Audit Committee include all the matters required under the Code and are reviewed at least annually by the
Committee. The Chair of the Committee meets informally and is in regular contact with key individuals involved
with the Company’s governance, including the Group Chief Financial Officer, Group Director of Risk & Assurance,
the Head of Internal Audit of Savills Investment Management (‘SIM’) and the Group Legal Director & Company
Secretary and prior to each Committee meeting, meets with each of them and senior members of the external
auditteamindividually.
In addition to its members, a standing invitation has been extended by the Committee to the Chair and Group Chief
Executive Officer to attend the Committee’s meetings. The Group Chief Financial Officer, Group Financial Controller,
the Group Director of Risk & Assurance, the Head of Internal Audit of SIM, Group Legal Director & Company Secretary
and the External Auditor attend each of the Committee’s meetings. Other senior executives from across the Group
areinvited periodically to present reports to assist the Committee in discharging its duties.
At least once a year, the Committee meets with the External Auditor and the Group Director of Risk & Assurance
without management being present. The Chair of the Committee also normally attends the AGM to respond to
Shareholder questions on its activities.
Activities of the Committee during the year
The Committee has a substantial agenda of items formulated to discharge its responsibilities, while maintaining
sufficient time for discussion of ad hoc matters that arise throughout the year. The Committee relies on
information and support from management across the business, receiving reports and presentations from business
management,the Heads of Key Group functions, Internal Audit and the External Auditor, which it challenges as
appropriate. Following each meeting, the Chair of the Committee reports on the main discussion points and any
actions arising from these to the Board.
The Committee provides advice to the Board on the form and basis of conclusions underlying the Viability
Statementas set out on page 37 and the going concern assessment.
121
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
AUDIT, RISKS AND INTERNAL CONTROLS continued
What the Committee did during the financial year ended 31 December 2023:
Responsibilities How the Committee discharged its responsibilities Mar June Aug Oct Dec
Financial
Reporting
Reviewed and discussed the key accounting considerations and estimates
and judgements reflected in the Group’s results for the half-year
■
Reviewed and discussed the key accounting considerations and
judgements reflected in the Group’s results
■
Reviewed the assessment supporting the going concern basis
ofaccounting
■ ■
Reviewed the Viability Statement and considered the processes
supporting the assessment of the longer-term solvency and liquidity
■ ■
External
Audit
Agreed the External Audit strategy and scope
■ ■
Considered and, where appropriate, approved the instruction of the
Group’s External Auditor’s provision of non-audit services
■ ■
Reviewed and considered reporting from the External Auditor,
including the External Auditor’s observations on the Group’s internal
controlenvironment
■
Discussed the performance of EY (‘EY’) who were the relevant External
Auditor for the 2023 year-end audit, assessed according to the Code
■
Met with the External Auditor without management present to discuss
their remit and any concerns
■ ■
Discussed and agreed remuneration in respect of external audit
services provided
■
Assessed the External Auditor’s independence, including the potential
impact of non-auditservices
■ ■
Internal
Audit
Considered and approved the remit of the Internal Audit function and
the Internal Audit plan
■
Received and considered reports from the Group’s Internal Audit
team covering various aspects of the Group’s operations, controls
and processes and monitored the progress made by management in
addressing recommendations arising out of these reports
■ ■
Monitored and reviewed the effectiveness of the Group’s
Internal Audit function in the context of the Group’s overall risk
managementarrangements
■
Met with the Group Director of Risk & Assurance privately to discuss
his remit and any concerns
■
Internal
Controls
and Risk
Management
Systems
Reviewed the effectiveness of the Group’s risk management system
and internal controls in place to manage the Group’s material existing
and emerging risks
■
Reviewed and considered the Group’s risk register
■ ■
Reviewed the risk management environment for each of the Group’s
regional businesses by receiving presentations from the Chief
Operating/Financial Officers of the Principal Businesses
■ ■ ■
Reviewed the Committee’s own performance, composition and Terms
of Reference, and recommended any changes the Committee considers
necessary for Board approval
■
Reviewed the reports provided by the Group’s Legal Director &
Company Secretary on significant legal matters
■ ■
Audit Committee Report continued
122
Annual report and accounts 2023
During the year, in addition to its established review processes, the Committee considered and reviewed a number
of other areas. These included updates on the risk and internal control environments within the Group’s UK, North
American, Asia Pacific, Investment Management and CEME businesses. In addition, the Committee examined the IT
systems strategy including the Group’s global approach to cyber security. The Committee specifically considered
the processes and assessment of the Group’s prospects and viability made by management to support the Viability
Statement which can be found on page 37. The Committee’s review included consideration of the time period
adopted, the processes supporting the assessment of the Group’s longer-term solvency and liquidity which support
the Viability Statement disclosure and assumptions.
The Committee considered and provided input into the determination of which of the Group’s principal risks might
have an impact on the Group’s longer-term solvency and liquidity. It also reviewed the results of management’s
scenario modelling, including severe downside modelling, and the stress testing of those financial models supporting
the viability analysis and challenged management on the appropriateness of the assumptions made.
Following discussions with management and the External Auditor, the Committee approved the disclosures of these
accounting policies and practices which are set out in Note 2 to the Financial Statements on pages 172 to 184.
Financial reporting
The Committee’s primary responsibility in relation to the Group’s financial reporting is to review, with management
andthe External Auditor, the appropriateness of the half-year and annual Financial Statements.
The Committee focuses on:
the quality and acceptability of accounting policies and practices;
material areas in which significant judgements have been applied or where significant issues have been discussed
with the External Auditor;
an assessment of whether the Annual Report & Accounts, taken as a whole, is fair, balanced and understandable;
the clarity of the disclosures and compliance with financial reporting standards and relevant financial and
governance reporting requirements;
providing advice to the Board on the form and basis underlying the long-term Viability Statement; and
any correspondence from regulators in relation to the Group’s financial reporting.
123
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Significant financial reporting estimates and judgements
As part of its monitoring of the integrity of the Financial Statements, the Committee considers the appropriateness
of the accounting policies proposed for adoption and whether management has made appropriate estimates and
judgements. To support its decision-making, the Committee seeks support and the views of the External Auditor in
these areas.
In accordance with Code provision 26, the following sets out the significant issues reviewed by the Committee
throughout the year, being those requiring management to exercise the highest level of judgement or estimation.
TheCommittee assesses these judgements to determine if they are reasonable and appropriate. This section outlines
the main areas of judgement that have been considered by the Committee and ensure that appropriate rigour has
been applied. The key reporting estimates and judgements considered by the Committee and discussed with the
External Auditor during the year were:
Matter considered Action
Revenue recognition The Committee considered the presumed risk of fraud and management override defined
by the International Accounting Standards.
The Committee discussed and challenged management’s conclusions in respect of revenue
recognition policies, satisfying itself that the approach applied to determine revenue
recognised in FY23 was appropriate, and in line with the Group’s accounting policies.
The Committee also received and discussed a report from the External Auditor setting out
their work, testing and conclusions in this area. The Committee, having challenged and
considered both management’s judgements and the External Auditor’s conclusions, agreed
that there were no material unadjusted issues in this area and that the approach taken
wasappropriate.
Carrying value
ofgoodwill
The Committee considered management’s approach in relation to the carrying value of the
Group’s businesses, and in particular goodwill. The Committee reviewed and considered
the detailed analysis of the key inputs to the valuations prepared and the process by which
they were drawn up. The Committee considered the appropriateness of the assumptions
used and reviewed the impact of sensitivity analysis.
The Committee also considered if there were any reasonably possible changes
in assumptions that would result in a material impairment and therefore require
further disclosure in the financial statements. These are set out in Note (15) to the
financialstatements.
The Committee also considered a report from the External auditor setting out its analysis
and conclusions in this area.
Overall, the Committee was satisfied with the assumptions made and judgements applied
bymanagement.
External Auditor
The current External Auditor, Ernst & Young LLP (‘EY’) was appointed following a comprehensive audit tender process
in 2019, and approval at the Company’s 2021 AGM. EY’s reappointment was approved at the 2023 AGM. Christabel
Cowling is the audit partner and has held the role since 2022.
The Audit Committee advises the Board on the appointment of the External Auditor, negotiates and agrees its
remuneration for audit and non-audit work, reviews its effectiveness, independence and objectivity and discusses
the nature, scope and results of the audit with the External Auditor. The Committee holds private meetings with the
External Auditor at the March and August Committee meetings to provide additional opportunity for open dialogue
and feedback to/from the Committee and the External Auditor without management being present. The Chair of the
Committee also meets with the external lead audit partner outside the formal Committee process throughout the year.
AUDIT, RISKS AND INTERNAL CONTROLS continued
Audit Committee Report continued
124
Annual report and accounts 2023
Audit and non-audit fees
To further safeguard the independence of the Company’s
External Auditor and the integrity of the audit process,
recruitment of senior employees from the External
Auditor is not allowed for an appropriate period after
they cease to provide services to the Company.
2023
£m
2022
£m
2021
£m
Audit fees 4.2 4.1 3.3
Non-audit fees 0.4 0.3 0.3
Details of the fees paid to the External Auditor can
be found in Note 7.2 to the Financial Statements on
page 198. The Company maintains a policy governing
the provision of non-audit services to the Group.
During the financial year ended 31 December 2023
contracts for non-audit services in excess of £0.1m
required Committee approval and the Chair of the Audit
Committee approved new instructions for the delivery
ofnon-audit services below this level.
The Committee was satisfied that in view of their
knowledge and experience of the Company, that when EY
was used, it was best placed to provide such non-audit
services and that their objectivity and independence had
not been impaired by reason of this further work. In line
with the Company’s policy on the provision of non-audit
work, the Committee reviewed the provision of non-audit
work provided by the External Auditor for the financial
year ended 31 December 2023 on a case-by-casebasis.
The Directors confirm that, insofar as they are each
aware, there is no relevant audit information of which
EYis unaware and each Director has taken the steps that
ought to have been taken as a Director to be aware of
any relevant audit information and to establish that EY
isaware of that information.
Effectiveness
The Committee assess the effectiveness of the External
Auditor and the appropriateness of the audit plan on
an annual basis, in addition to the level of the External
Auditor’s fees. The review covered a broad range of
matters including amongst other matters, the quality
of staff, its expertise, resources and the independence
of the audit. The Committee considered the External
Audit plan for the year and assessed how the External
Auditor had performed including consideration of the
robustness of their challenge and findings on areas
which required judgement, the strength and depth
of the lead partners and feedback from the Group’s
management. As part of the review of the effectiveness
of the external audit, a formal evaluation incorporating
views from the Committee and relevant members of
management is considered by the Committee. Feedback
from the review was provided to EY as part of the
annualplanningmeeting.
The Committee considers that the External Auditor
relationship is appropriate and the Committee is satisfied
with EY’s overall effectiveness.
Independence
An important aspect of managing the External Auditor
relationship, and of the annual effectiveness review, is
ensuring that there are adequate safeguards to protect
auditor objectivity and independence. The Committee
regards independence of the External Auditor as
absolutely crucial in safeguarding the integrity of the
audit process and takes responsibility for ensuring
the three-way relationship between the Committee,
the External Auditor and management remains
appropriate. In conducting its annual assessment, the
Committee reviews the External Auditor’s own policies
and procedures for safeguarding its objectivity and
independence. As one of the ways in which it seeks to
protect the independence and objectivity of the External
Auditor, the Committee has a policy governing the
engagement of the External Auditor to provide non-
audit services and its assessment of EY’s independence
is underpinned by this policy. In accordance with the
FRC’s Ethical Standard and the Group’s policy in place to
31 December 2023, the Committee approved only those
non-audit services which were permissible in the FRC’s
Ethical Standard.
The Audit and Risk Committee’s role
in ensuring the financial statements
taken as a whole are fair, balanced
andunderstandable
As part of the Committee’s assessment as to
whether the annual Financial Statements are ‘fair,
balanced and understandable’, taken as a whole
the Committee has oversight of and reviews the
effectiveness of key processes implemented
bymanagement.
In addition to the above, the Committee also
undertakes a review to determine if the entire
Financial Statements are representative of the
Group’s performance in the year and challenges
management on the overall balance of the Report
and Accounts prior to recommending approval of the
Financial Statements to the Board. This includes the
financial reporting responsibilities of the Directors
under Section 172 of the Companies Act 2006.
125
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Regulatory Reporting
The Financial Reporting Council (‘FRC’) publishes
thematic reviews and other guidance to help companies
improve the quality of corporate reporting through
the provision of guidance and reviews of the quality
ofreporting across public companies.
Internal control and risk management
Internal audit
The Committee has the primary responsibility for the
oversight of the Group’s system of internal control,
including the risk management framework, the
compliance framework, and the work of the Group’s
internal audit functions.
The internal audit function provides independent
assurance as to the adequacy and effectiveness of
the Company’s internal controls and risk management
systems. During 2023, Internal Audit services were
delivered by the Group’s Director of Risk and Assurance
with delivery support from two audit firms – RSM LLP
(“RSM”) and Grant Thornton LLP. Savills IM has its own
Head of Internal Audit who has responsibility for Internal
Audit planning and delivery within Savills IM with support
from RSM, and who reports to the Group Risk Committee
and the Audit Committee on findings and actions
arising from internal audits within Savills IM. The Group
Risk Committee and Audit Committee approve the SIM
annual Internal Audit Plan.
The Board’s responsibility for internal control and risk is
detailed on page 108 and is incorporated into this report
by reference.
The Group’s Director of Risk and Assurance attended
all five scheduled Audit Committee meetings, and the
SIM Head of Internal Audit attended by invitation two
meetings and provided a range of presentations and
papers to the Committee, through which the Committee
monitored the effectiveness of all of the Group’s material
internal controls, including financial, operational and
compliance controls on behalf of the Board.
The Committee approved the internal audit plan and
the SIM Internal Audit plan at the December Committee
meeting and received progress against those plans
during the year, while the effectiveness, workload of the
internal audit functions and the adequacy of available
resources were monitored throughout the year. The
Committee ensures that Internal Audit was appropriately
resourced with the skills and experience relevant to the
operations of the Group and that information was made
available to it to enable it to fulfil its mandate to the
appropriate professional standards.
The Committee reviews Internal Audit reports from
both Group and SIM on a regular basis and monitors
the status of all Internal Audit recommendations and
management’s responsiveness to their implementation,
and challenges both Internal Audit and management
where appropriate to provide assurance that the control
environment is robust and effective.
In assessing the performance of Internal Audit, the
Committee considered and monitored its effectiveness in
the context of the Company’s risk management system
and took into account management’s assessment of and
responsiveness to the Internal Auditor’s findings and
recommendations and reports from the External Auditor
on issues identified during the course of their work.
Assessment of Group’s system of internal
control, including the risk management
framework
The Committee, on behalf of the Board, undertook a
robust review of the effectiveness of the system of risk
management and internal control.
In performing its review of effectiveness, the
Committee reviewed and assessed the following
reportsandactivities:
Internal Audit reports on the review of the controls
across the Group and its monitoring of management
actions arising from these reviews;
management’s own assessment of risk and the
performance of the system of risk management and
internal control during 2023;
reports from the Group Director of Risk & Assurance
including reports on Group-wide risk assessment
activity and annual self-assessment findings;
reports from the SIM Head of Risk & Compliance
andthe SIM Head of Internal Audit; and
reports from the External Auditor on any issues
identified during the course of their work.
The Committee and the Board considered that the
information received was sufficient to enable a review
of the effectiveness of the Group’s internal controls
in accordance with the FRC’s Guidance on Risk
Management, Internal Control and Related Financial
andBusiness Reporting.
AUDIT, RISKS AND INTERNAL CONTROLS continued
Audit Committee Report continued
126
Annual report and accounts 2023
DIRECTORS’ REMUNERATION REPORT
Governance
This Report has been prepared
on behalf of the Board by the
RemunerationCommittee (the
‘Committee’) in accordance with the
requirements of the Companies Act
2006 and the Large and Medium-sized
Companies and Groups (Accounts and
Reports) (Amendment) Regulations
2008 (as amended) (‘Regulations’) and
the auditable disclosures referred to in
the External Auditor’s Report on pages
156 to 165 asspecified by the UK Listing
Authority and the Regulations.
Richard
Orders
Chair of the
Remuneration
Committee
Dear Shareholder
On behalf of the Board, I am pleased to introduce our
2023 Directors’ Remuneration Report (the ‘Report’).
Included within this Report are a summary of the
Directors’ Remuneration Policy (the ‘Policy’) which was
approved by Shareholders at our 2022 AGM and details
of how we implemented the Policy in 2023.
Our remuneration philosophy
As set out in previous reports, our long-standing focus
and business philosophy is founded on the premise that
staff in our sector are motivated through performance-
based incentives (variable remuneration) consistent
with our partnership culture. We firmly believe that this
approach best aligns Shareholders’ and management’s
interests and incentivises superior performance and
the creation of long-term Shareholder value. This
approach also ensures that our reward arrangements
areconsistent with, and sensitive to, the cyclical nature
of real estatemarkets.
The Policy is designed to deliver these objectives
and toprovide the reward potential necessary for the
Company to attract, retain and motivate the high-
calibre individuals on whom its continued growth
and development depend. Reflecting this philosophy,
the salaries for the Executive Directors, Group
Executive Board members and senior fee-earners
are set significantly below market medians for similar
businesses, with a greater emphasis on the performance-
related elements of profit share and/or, outside the UK,
commission in the total rewardpackage.
Annual statement
Richard Orders
Stacey Cartwright
Nicholas Ferguson
Dana Roffman
COMMITTEE MEMBERS
127
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT continued
Annual statement continued
The Committee is mindful of its responsibility to
rewardappropriately, but not excessively. As such, it
places great emphasis on the calibration of Executive
Director remuneration and structure against internal
relativities and wider market conditions, while also
rigorously assessing external competitive positioning in
setting remuneration. Finally, it determines targets to
ensure that reward properly reflects performance, that
it supports the delivery of our strategic and operational
objectives and that it is fair to management and
Shareholders alike. Overall, we continue to target staff
employment costs over the cycle to be in the range of
65%–70% of revenues which the Committee regards as
the key metric from a Shareholder’s perspective.
The Committee is comfortable that our remuneration
philosophy remains appropriate and continues to align to
the best interests of our stakeholders, demonstrated by
the high levels of Shareholder support for our Directors’
Remuneration Policy at our 2022 AGM.
2023 performance and
remunerationoutcomes
Savills strength across our less transactional service
lines continued to provide a resilient earnings stream,
underpinning Savills overall performance in a global
real estate market challenged by significantly reduced
transactional activity. The Group’s revenue decreased
by 3% to £2.2bn (2022: £2.3bn), down 2% on a constant
currency basis. Although not immune to market
volatility(particularly in respect of some Consultancy
service lines), the strength of our less transactional
businesses underpinned Savills performance overall,
growing revenue by 7% to £1.5bn. Prime drivers
of performance were Consultancy and Property
Management which performed well, growing revenue
by4% and 11% respectively. The Group’s Transactional
business experienced a 17% drop in revenue during the
year as global market conditions remained extremely
subdued for longer than originally anticipated at the
start of 2023. This was the primary cause of the 42%
reduction in the Group’s underlying profit of £94.8m
(2022: £164.6m), representing an underlying profit
margin of 4.2% (2022:7.2%).
As a result of the challenging market conditions during
2023, the real estate services industry as a whole
undertook a number of rounds of cost reduction and
reorganisation actions. In line with our strategy during
the global financial crisis of 2008, as well as more
recently through the pandemic, and supported by our
strong financial position, Savills continued to maintain
its core bench-strength around the world, ensuring
we provided the highest level of service to our clients
throughout the year and remain well positioned for
market recovery. We did, however, review the global
business for locations or service lines where the
anticipated time frames for market recovery remain
protracted. This resulted in selective restructuring of
certain transactional and related support teams.
* The KPIs are calculated as the change in the KPI over the period
1 January 2019 – 31 December 2023.
** The dividend cost for 2023 comprises the cost of the final dividend
recommended by the Board (amounting to £19.0m) alongside the
supplemental interim dividend (amounting to £2.7m), payment of which is
subject to Shareholder approval at the Company’s Annual General Meeting
(‘AGM’) scheduled to be held on 15 May 2024 and payable to Shareholders
on the Register of Members as at 12 April 2024 and the interim dividend
(£9.5m) paid on 2 October 2023.
*** Executive Director remuneration reflects the change in the total (“Single
Figure”) remuneration paid to the Group Chief Executive Officer and
Group Chief Financial Officer role holders over the period 1 January 2019 –
31December 2023.
2019–2023 Overview*
-34%
Underlying Profit
-27%
Dividend Payments to Shareholders**
+11%
Executive Director Remuneration***
+59%
Total Shareholder Return
128
Annual report and accounts 2023
Against the backdrop of these very challenging
market conditions, the Group continued to maintain a
positive liquidity position with net cash (cash and cash
equivalents net of borrowings and overdrafts in the
notional pooling arrangements) of £157.3m at year end
(2022: £307.4m).
Annual performance-related profit share
Given the above market context, having had regard to
the Company’s financial plans for the year, the Committee
set a broad range of financial targets within the annual
performance-related profit share with a view to striking an
appropriate balance between the stretching nature of the
targets and potential rewardoutcomes.
Reflecting on the factors set out above, profit
performancewas towards the lower end of the financial
range of targets. The 2023 underlying profit targets
ran from £80m at the threshold performance level
through to £180m for maximum performance reflecting
the uncertainty in the real estate market. Our actual
performance was £94.8m and so we achieved 36% of the
maximum target under the profit element of the bonus.
With regard to performance against non-financial
targets, we achieved strong performance in the areas
of growing our Global Residential, Global Prime Retail,
Global Occupier Services and Savills Earth offerings. Also
as a result of prevailing market conditions during 2023,
whilst maintaining our core bench-strength to ensure
that we could provide the highest level of service to our
clients throughout the year and remain well positioned for
market recovery, we reviewed certain markets and sectors
where the anticipated time frames for market recovery
remain protracted. This resulted in selective restructuring
in certain transactional and support teams. Alongside
this, we continued to acquire businesses and recruit high
quality talent in markets which have become much more
conducive to reasonably-priced business development.
This strong strategic progress, many aspects of which were
included in the non-financial targets set at the start of the
year, resulted in a total of 80 % of the maximum being
earned under this element of the bonus (2022: 90%).
Overall bonuses were earned at 47% of the maximum.
When considering the appropriateness of the bonuses
earned, the wider factors considered by the Committee
included the following performance highlights from 2023:
Revenue of £2.2bn achieved (2022: £2.3bn) against
a backdrop of extremely subdued global real estate
markets as a result of significantly increased interest
rates, geo-political events, and, on a more asset specific
level, uncertainties over the future role of offices and
the valuation of existing stock in the era of sustainability
Group underlying profit at £94.8m (2022: £164.6m),
with the year-on-year reduction primarily reflecting
the 17% drop in revenue generated by the Group’s
Transactional business during the year, as a result
of the significantly reduced transactional activity
inglobal transaction markets
Revenue in the Group’s less transactional businesses
of Consultancy and Property Management grew by
4% and 11% respectively as these businesses,
although not immune to market volatility (particularly
in respect of some Consultancy service lines),
performed well, with their strength helping to
underpin Group performance overall
Strong liquidity position maintained with net cash
(cash and cash equivalents net of borrowings and
overdrafts in the notional pooling arrangements) of
£157.3m at year end (2022: £307.4m)
The wider stakeholder experience over the year which
included delivering an 18% total shareholder return
(inclusive of a 15% increase in share price) in the
very challenging market context detailed above. In
recognition of the performance delivered through the
year, bonuses awarded to the Executive Directors were
consistent with those awarded to the Group Executive
Board members and wider senior fee earners with the
overall total payments reduced proportionately against
2023 in light of the overall lower level of profitability,
reflecting our pay model, but recognising the strong
financial and strategic progress delivered in the wider
market context. Reflecting the emphasis on reward for
performance, total employment costs remained within
the targeted 65-70% of Group revenue, with profit-
related pay reducing consistent with the year-on-year
reduction in underlying profit.
In light of the above, the Committee considered the
annual performance profit share outcomes for the
Executive Directors to be appropriate and reflect the
financial and non-financial performance of the business
and the experience of stakeholders.
Full details of the annual performance-related profit
share awards approved by the Committee for the
Executive Directors are included along with the other
elements of remuneration in the total remuneration
tableon page 136 of this Report.
Performance Share Plan
The end of the 2023 financial year was also the end of the
three-year performance period for our Performance Share
Plan (‘PSP’) awards made in November 2021. In this regard:
one-third was based on TSR performance measured
against the FTSE Mid 250 Index (excluding investment
trusts); based on the Company’s performance
compared to the FTSE 250 Index (ex-Investment
Trusts) over the 2021-23 (inclusive) performance
period, 0% of this element of the awards vested;
notwithstanding our positive EPS growth over the
period 2021 to 2023 (inclusive) of 1.4%, we were below
the threshold target set in 2021 and so this resulted in
0% of this element of the award vesting; and
one-third based on Return on Capital Employed
(‘ROCE’) performance; average ROCE over 2021-2023
(inclusive) was 16.6%, resulting in 37% of this element
of the award vesting.
The above resulted in a formulaic outcome of 12.36%
ofmaximum.
129
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
As with the annual performance-related profit share, the
Committee considered the performance-linked outcome
of the 2021 PSP awards in the context of the Company’s
performance and the wider stakeholder experience
over the past three years and concluded the formulaic
outcome was appropriate.
Further details regarding performance targets are set
outon page 137 of this Report.
In line with the Policy, awards for Executives which have
satisfied the performance conditions attaching to them
remain subject to a two-year holding period, during
which time Executives will be incentivised to maintain
the strong performance delivered over recent years.
Overall, the Committee is satisfied the Policy operated as
intended for 2023 and that outcomes reflect the financial
and non-financial performance delivered during the period.
Workforce and governance developments
During the year the Committee received updates on
workforce remuneration, mindful of the cost-of-living
pressures employees in some markets are facing.
Reflecting the generally increased cost of living across the
globe, various initiatives were implemented to support,
in particular, lower paid employees. For example, in the
UK, ‘My Rewards’ promotions were extended to allow
employees to access discounts on goods and services and
Royal London, the provider of Savills UK’s Group Personal
Pension Plan, supported by Savills UK’s Employee
Assistance Programme, provided a financial wellbeing
service. In the US, two new programmes were launched;
discounted gym membership and a free financial
wellnessservice.
With regard to engagement with employees on pay,
thiscontinues to be facilitated through the Savills
workforce engagement programme, which allows the
Non-Executive Directors to directly receive feedback
across a wide spectrum of topics, including how
executive remuneration aligns with wider employee
remuneration and supports the Group’s strategy.
2024 remuneration
As referenced in the ‘Our remuneration philosophy’
section above, Savills has a long-standing and
established approach of offering low base salaries for
senior staff relative to market medians (which approach
applies to the Executive Directors, Group Executive
Board Members (‘GEB Members’) and other senior
fee earners) consistent with our performance-based
approach to incentivisation and reward.
For 2024, the salaries of both Executive Directors will
remain unchanged. Salaries across the wider workforce
will increase by c.3% overall, but within this overall
increase, higher increases will be awarded to more junior
employees, and more senior employees who enjoy higher
performance-related pay, being awarded lower increases.
The UK workforce aligned pension contributions of 8%
for both Executive Directors will also remain unchanged.
For 2024, the maximum opportunity under the annual
performance-related profit share will remain unchanged
at £3.25m and £2.5m for the Group Chief Executive
Officer and the Group Chief Financial Officer respectively.
Awards will continue to be based on Group underlying
profit performance (75%) and on the achievement of
pre-set personal strategic and operational objectives
(25%). The underlying profit performance targets
are commercially sensitive and will therefore be fully
disclosedretrospectively in next year’sreport.
Like the annual performance-related profit share, for
2024 the PSP will remain consistent with the approach
taken in previous years. This will include an award of
performance shares with a value of 200% of base salary
for the Group Chief Executive Officer and the Group
Chief Financial Officer. The performance metrics will
also remain unchanged from the 2023 award being EPS
growth, relative total Shareholder return and ROCE with
an equal weighting applying to each metric. In line with
Policy, where at least threshold performance has been
achieved over the three-year performance period, awards
will be subject to a further two-year holding period.
Further details regarding the performance measures and
associated targets can be found on page 148. However, in
light of the current market context the Committee remains
in the process of finalising the specific targets to apply to
the 2024 PSP awards. The targets will be included in the
market announcement of the awards at the time of grant.
Chair succession
As announced in August 2023, Stacey Cartwright
succeeded Nicholas Ferguson as Chair of the
Board upon his retirement from the Board effective
31December 2023. In line with the Policy, Stacey will
receive an all-encompassing fee aligned to the market.
The fee, set at £240,000, reflected the current size and
complexity of Savills which have continued to grow as a
result of our successful business diversification and the
expected future time commitment of the role.
Conclusion
As a Committee, we continue to monitor best practice
developments in executive remuneration and consider
whether any amendments to the Policy are appropriate.
I hope you will support this Report at our AGM to be held
on 15 May 2024. I welcome any comments or feedback
you may have on the decisions made by the Committee.
Richard Orders
Chair of the
Remuneration Committee
DIRECTORS’ REMUNERATION REPORT continued
Annual statement continued
130
Annual report and accounts 2023
Annual Report on Remuneration
Role of the Committee
The principal role of the Committee is to support the Group to achieve its strategic objectives by designing a
Remuneration Policy consistent with the Group’s business model and values, such that we have the ability to attract,
recruit, retain and motivate the high-calibre individuals needed to deliver the Group’s strategy and promote the
long-term interests of the Company. The Committee also considers the broader implications of the Policy in the
context of environmental, social and governance (‘ESG’) considerations and how the Policy best supports the Group’s
delivery of its objectives in these areas. The Committee is responsible for the broad policy governing senior employee
remuneration. It sets the actual levels of all elements of the remuneration of the Executive Directors, the Chair of the
Company and the GEB members. The Committee also considers workforce remuneration and related policies and the
alignment of incentives and rewards with culture, risk management and the Group’s ESG objectives and when setting
the policy for Executive Director remuneration takes those matters into account. The Policy remains under periodic
review to ensure that it remains consistent with the Company’s scale and scope of operations, supports business
strategy, its environmental, social and governance strategy and its growth plans and helps drive the creation of
Shareholder value. The Committee also oversees the operation of Savills employee share schemes.
Committee members and attendees
As shown in the table below, during the year the Committee comprised the following Independent Non-Executive
Directors, with the following attendees:
Committee member Position Status
Richard Orders Chair of the Committee Independent
Stacey Cartwright Member of the Committee Independent
Nicholas Ferguson
1
Member of the Committee Independent
Dana Roffman Member of the Committee Independent
1 Nicholas Ferguson stood down from the Committee upon his retirement from the Board 31 December 2023.
Committee attendee Position Status
Mark Ridley Group Chief Executive Officer Attended by invitation (except when his own
remuneration was discussed)
Chris Lee Group Legal Director
& Company Secretary
Provided advice and support (except when his own
remuneration was discussed) as well as acting as
Secretary to the Committee
Simon Shaw, Group Chief Financial Officer, was invited to attend meetings to provide an overview of market conditions
and the Group’s financial performance.
2023 Attendance
Committee member
Meetings
Attended
Meetings
eligible to
attend
Richard Orders 4 4
Stacey Cartwright 4 4
Nicholas Ferguson 4 4
Dana Roffman 4 4
As at 31 December 2023 and up to the date of this Report, the Committee wholly comprised Independent Non-
Executive Directors. Biographies of each of the Committee members can be found on pages 86 to 88.
131
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT continued
The Committee met four times during 2023. The
principal agenda items considered by the Committee
during the year were as follows:
reviewing the voting outcome and associated
Shareholder feedback relating to the Directors’
Remuneration Report at the 2023 AGM;
determining 2022 performance-based profit share
and 2020 LTIP outcomes;
considered developments in workforce remuneration;
agreeing performance targets for both the 2023
annual performance-related profit share and
Performance Share Plan awards, mindful of uncertain
market conditions;
preparing an Annual Directors’ Remuneration
Reportconsistent with the legislation relating to
executive remuneration;
agreeing the remuneration packages of the Executive
Directors and GEB members; and
approving the grant of Performance Share
Planawards.
Advisors to the Committee
The Committee receives independent external advice
on executive remuneration from Korn Ferry who was
appointed as Remuneration Advisors in 2021. Korn
Ferry’s fees for advising the Remuneration Committee
during 2023 were £37,938.
The Committee is satisfied that the advice received
from Korn Ferry during the year was entirely objective
and independent. The Committee will continue to keep
these arrangements under review to ensure that they
remain appropriate to the needs of the Committee in
developing remuneration policy to support the delivery
ofGroupstrategy.
The Committee is also advised by the Group Legal
Director & Company Secretary (save in relation to
matters concerning his own remuneration).
Given the fundamental role that remuneration plays in
the success of the Group, in terms of the recruitment,
incentivisation and retention of high-quality employees,
the Group Chief Executive Officer attends meetings
by invitation and is consulted on the remuneration
package of the Group Chief Financial Officer and
otherGEBmembers.
Terms of Reference
The Committee’s Terms of Reference, which are
reviewedannually, or by exception to take account of
regulatory changes or best practice, are available from
the Group Legal Director & Company Secretary upon
request or can be viewed on the Company’s website
(www.savills.com).
Annual Report on Remuneration continued
132
Annual report and accounts 2023
Remuneration Policy
The Policy was approved by Shareholders at the Company’s AGM held on 11 May 2022 and documented in the
Reportand Accounts for the year ended 31 December 2021 available at https://ir.savills.com/.
The Group’s remuneration arrangements for the Executive Directors, GEB members and senior fee-earners are
structured to provide a competitive mix of variable performance-related (i.e. annual performance profit share
and longer-term incentives) and fixed remuneration (principally base salary) to reflect individual and corporate
performance. The objective is to set targets which provide an appropriate balance between being achievable
andstretching.
In determining the remuneration of the Executive Directors and reviewing that of the GEB members, the Committee
reviews the role and responsibilities of the individual, their performance, the arrangements applying across the wider
workforce and internal pay relativities. It also considers sector and broader market practice in the context of the
prevailing economic conditions and corporate performance on environmental, social and governance issues.
Overview of the Policy
A summary of the Policy for Executive Directors and how it will be applied for 2024 is set out below.
Element Summary of approach Application of Policy for 2024
Base salary Base salaries are set significantly below
market median levels, in line with the Group’s
philosophy of placing the emphasis on variable,
performance-related remuneration.
The Committee has determined that there will
be no increase to base salaries for Executive
Directors in respect of 2024.
Salaries from March 2024 will therefore be
asfollows:
Group Chief Executive Officer: £311,000.
Group Chief Financial Officer: £238,000.
Pension Pension benefits are provided through a Group
personal pension plan, as a non-pensionable
salary supplement or as a contribution to a
personal pension arrangement.
The Group Chief Executive Officer will be
entitled to a pension from the legacy defined
benefit pension plan but no longer accrues
benefits under the plan.
Since 1 January 2023 pension contributions/
salary supplements have been aligned with the
UK workforce contribution rate of 8% of salary
for both Executive Directors:
Group Chief Executive Officer: 8% of salary.
Group Chief Financial Officer: 8% of salary.
Benefits Benefits include:
medical insurance benefits;
annual car/car allowance (up to £9,000);
permanent health insurance;
life insurance; and
relocation expenses.
Benefits in line with Policy.
Annual
performance-
related profit
share
Reflects the Group’s annual profit performance
and personal performance against pre-set
objectives and overall contribution.
In line with the Group’s philosophy that there
is greater emphasis (than is the norm for listed
companies) on variable performance-related
pay. Consequently, 50% of any award payable
above an amount equal to base salary is
deferred into shares for three years.
Malus and clawback provisions apply.
The maximum potential annual profit share
awards for 2024 are:
Group Chief Executive Officer: £3.25m.
Group Chief Financial Officer: £2.5m.
For 2024 profit share awards, 75% will
be based on the Group’s annual profit
performance and 25% will be based on
the delivery of strategic and operational
performance goals. The Committee reserves
its ability to vary these proportions or apply
different/additional measures in future years.
133
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT continued
Element Summary of approach Application of Policy for 2024
Performance
Share Plan
Awards of shares are made subject to a three-year
performance period. Any awards which satisfy
the three-year performance conditions attaching
to them will then be subject to an additional two-
year holding period before vesting.
The maximum award potential remains at
200% of base salary, subject to an overall
annual maximum of shares with a value of
£1mon award per participant.
Malus and clawback provisions apply.
The awards for 2024 will be up to 200% of
base salary.
For 2024 Performance Share Plan awards, one-
third of the award will vest subject to absolute
Earnings Per Share performance, one-third
will vest subject to relative TSR performance
against the FTSE 250 Index (excluding
investment trusts) and one-third will vest
subject to ROCE performance.
Performance will be measured over the three-
year period starting on 1 January 2024.
Share Ownership
Guidelines
Achieved through share purchase and/or
retention of any after-tax shares which vest
pursuant to the Group’s share plans until the
guideline is met.
700% of base salary for the Group Chief
Executive Officer and Group Chief Financial
Officer while in post.
250% of salary applying for two years
post-cessation.
Non-Executive Director fees, which are set consistent with the median for the FTSE 250, are subject to annual review,
with any increase capped at RPI. Additional fees, again set consistent with the median for the FTSE 250, are payable
to the Senior Independent Director and Committee Chairs to recognise their additional responsibilities; these fees will
also not be increased in 2024.
The Board Chair’s fee, which again is set at levels consistent with the median for the FTSE 250 Index is subject to
annual review, capped at RPI. The Chair’s fee will not increase in 2024.
The Committee has ensured that the Directors’ Remuneration Policy and practices are consistent with the six factors
set out in Provision 40 of the Corporate Governance Code:
Factor How this has been addressed
Clarity Our Directors’ Remuneration Policy is well understood by our senior executive team and has been
clearly articulated to our Shareholders and representative bodies (both on an ongoing basis and
during consultation when changes are being made).
Simplicity The Committee is mindful of the need to avoid overly complex remuneration structures which
can be misunderstood and deliver unintended outcomes. Therefore, a key objective of the
Committee is to ensure that our Directors’ Remuneration Policy and practices are straightforward
tocommunicate and operate.
Risk Our Directors’ Remuneration Policy has been designed to ensure that inappropriate risk-taking
is discouraged and will not be rewarded via (i) the balanced use of both annual incentives and
long-term incentives which employ a blend of financial, non-financial and Shareholder return
targets, (ii) the significant role played by shares in our incentive plans including the deferral under
the annual performance-related profit share (together with in-employment and post-cessation
shareholding guidelines) and (iii) malus/clawback provisions within all our incentive plans.
Predictability Our incentive plans are subject to individual caps, with our share plans also subject to market
standard dilution limits. The use of shares within our incentive plans means that actual pay
outcomes are highly aligned to the experience of our Shareholders.
Proportionality There is a clear link between individual awards, delivery of strategy and our long-term performance.
In addition, the significant role played by incentive/‘at-risk’ pay, together with the structure of the
Executive Directors’ service contracts, ensures that poor performance is not rewarded.
Alignment to
culture
Our executive pay policies are fully aligned to the Company’s culture through the use of metrics
inboth the annual performance-related profit share and PSP that measure how we perform
against key aspects of our strategy, which has the objective of delivering sustainable growth
inprofit and ROCE. A similar structure operates across the Group.
Remuneration Policy continued
134
Annual report and accounts 2023
Fixed Pay
Annual Award Long-Term Award 50% share price growth on Long-Term Award
100%
Minimum Target Maximum
£5m
£
£0.5m
£1m
£1,5m
£2m
£2,5m
£3m
£3,5m
£4m
£4,5m
14% 8%
80%
77%
15%
£4,530,550
£4,219,550
£2,534,300
£347,550
6%
Minimum Target Maximum
£5m
£
£0.5m
£1m
£1,5m
£2m
£2,5m
£3m
£3,5m
£4m
£4,5m
100%
£268,253
£1,949,753
80%
14%
£3,482,253
£3,244,253
77%
8%
6%
15%
Illustrations of application of the Policy
The charts below illustrate how much the current Executive Directors could earn under four different performance
scenarios for 2024: ‘Minimum’, ‘On-target performance’, ‘Maximum’ and ‘Maximum with share price growth’ – based
onthe assumptions below.
Group Chief Executive Officer Group Chief Financial Officer
Element in the chart above Component Minimum Target Maximum
Fixed pay Base salary 2024 base salary
Pension 8% of salary for CEO
8% of salary for CFO
Benefits 2023 ‘single figure’ amount
Annual award Annual
performance-related
profit share
0% of
maximumaward
62.5% of
maximumaward
CEO – £3.25m
CFO – £2.5m
Long-term award PSP 0% of
maximumaward
25% of
maximumaward
CEO – 200% of salary
CFO – 200% of salary
Other assumptions ‘Maximum with share price growth’ is as ‘Maximum’ including assumed 50% share
pricegrowth
Excludes additional shares representing the value of dividends declared during the vesting
period which may attach to the deferred element of any annual performance-related profit
share award or PSP award at vesting
Assumes that no awards are made under tax advantaged all-employee share plans
The proposed new policy does not include an on-target level for the annual performance-
related profit share so 62.5% of maximum award has been used for illustrative purposes.
135
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT continued
Total remuneration for 2023 (audited)
Set out below are details of Executive Director remuneration for 2023.
Executive Directors’ ‘single figure’ for the financial year ended 31 December 2023 and as a comparison for the financial
year ended 31 December 2022.
Mark Ridley Simon Shaw
2023
£
2022
£
2023
£
2022
£
Salary paid 311,000 308,333 238,000 235,917
Benefits
1
11,670 11,529 11,216 11,216
Pension 24,880 43,167 19,040 42,465
Total fixed remuneration 347,550 363,029 268,256 289,598
Annual profit share – cash 920,000 1,348,500 707,000 1,036,500
Annual profit share – deferred shares 610,000 1,037, 500 470,000 798,500
Gain on long-term share-based awards
Performance Share Plan – performance element
2
(notional) 72,911 63,991 55,731 48,914
Performance Share Plan – share appreciation element
2
(notional) (28,838) 1,911 (22,043) 1,461
Long-term share-based reward (non-cash – notional)
2
44,073 65,902 33,688 50,375
Total variable remuneration 1,574,073 2,451,902 1,210,688 1,885,375
Total ie ‘single figure’ (part notional) 1,921,623 2,814,931 1,478,944 2,174,973
Notes:
1. Benefits comprise private medical insurance and car allowance.
2. For 2023 the notional value of the PSP award with a performance period which ended on 31 December 2023 (i.e. where the award will vest in November 2026)
has been valued based on the number of shares that will vest and the three-month average share price for the period to 31 December 2023 (850.5p per share).
For 2022 the notional value of the PSP award with a performance period which ended on 31 December 2022 (i.e. where the award will vest in June 2025) has been
valued based on the number of shares that will vest and the three-month average share price for the period to 31 December 2022 (857.9p) per share. The actual
value has been split between the relevant value on the date of the original award of the relevant shares (the PSP – performance element) and subsequent increase
in value (PSP – share price appreciation). Note that the long-term share-based reward (non-cash – notional) valuations for 2023 would be £49,851 and £38,105
respectively for Mark Ridley and Simon Shaw valued based on the share price as at 11 March 2024 (962p per share).
Annual Report on Remuneration
136
Annual report and accounts 2023
Performance-related remuneration for 2023 (audited)
Annual performance-related profit share
The following short-term performance measures applied to the 2023 annual performance-related profit share
arrangements with the target ranges purposefully calibrated as a broad sliding scale that took into account the
challenging and uncertain market conditions that included recent year high interest rates and price inflation. In this
context, the range of targets were set symmetrically as a broad range which the Committee considered realistic
at thelower end of the target range and aspirationally stretching at the top end of the range in light of market
conditionsand the overall incentive quantum and Savills tailored remuneration structure:
75% of the award was based on profit performance, defined as underlying profit performance. The target range and
Savills performance were as follows:
Minimum (25% of element)
Target
(62.5% of element)
Maximum target
(100% of element)
Savills underlying
profit performance
Bonus award
(% of element)
£80m £130m £180m £95m 36%
There was straight-line vesting between performance points.
As referenced in the Chairman’s letter mindful of challenging and uncertain market conditions, the Group performed
resiliently reflecting Savills strength across its less transactional service lines, with the Group’s Consultancy and
Property Management businesses performing well, underpinning Savills overall performance. The Committee approved
awards of 36% of maximum in respect of the underlying profit performance-related element (2022: 67.5%).
The remaining 25% of annual performance-related profit share awards was based on individual performance against
key strategic and operational objectives. The Executive Directors, based on performance against the targets set at
thestart of the year, were each awarded 80% of this 25%.
The Committee set strategic and operational objectives for the Executive Directors consistent with the Group’s
strategic growth focus and with ensuring that the Group remained its strong financial position through the period,
core bench-strength and client service levels were maintained, and which were aligned with longer-term value
creationfor Savills.
The tables overleaf set out the strategic and operational targets set for the Executive Directors and their actual
performance against the targets:
137
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Mark Ridley:
Target Achievement
1. Deliver an acceleration of the linkage and
growth in Portfolio Solutions, pivoting
away from Tenant Rep brokerage towards
mandated MSA and panel mandates and
ensure that there is sufficient infrastructure
to support this initiative at a global level
North America Portfolio Solutions launched, concentrating and co-ordinating
the delivery of US occupier services offerings into a national delivery platform
with a year-on-year doubling of revenue, New US Portfolio Solutions were
embedded into the Global Occupier Services offering, led by a Global Strategy
Board comprising the Regional Occupier Service leads
2. Reset the US Board structure including
setting up Divisional Boards for Portfolio
Solutions, Brokerage and Consultancy
Services, to provide greater focus and
linkage into the broad network
North America leadership and management restructured, including the
introduction of Divisional Leadership Boards for Portfolio Solutions, Brokerage
and Consultancy Services to lead those business lines
3. Develop the Savills Earth Consultancy
business, in particular, focusing on ‘brown
to green’ initiatives and retro-fitting of
obsolescent building stock and ensure
global linkage and best practice across
theentire platform
Savills Earth Consultancy business further developed, with geographic and service
line extension, which now includes Strategy, Certification, Reporting, Net Zero
Transition, Climate Resilience & Risk, and Savills Green Fit launched, including
turnkey solutions on asset repositioning and project management services and
allwell received by clients
4. Continue the growth of our Residential
activities in line with the global Residential
strategy plan, focusing on UK, CEME and
selected markets across APAC and the
Caribbean. Global Residential Strategy
plan. Accelerated the plan including
prioritisation of strategic targets including
Italy, Portugal, Singapore and Spain, with
further ongoing discussions covering
Australia; strengtheningthe Middle East
andevaluatingoptions in Paris
Residential platform growth delivered ahead of Board plan, including the
successful expansion of the Group’s CEME Residential Network through
acquisition across Switzerland (Verbier Lettings); Portugal (Predibisa); and Italy
(BeLiving); and recruitment in Spain (Barcelona); and the UAE
5. Ensure that the Group continues to make
progress to deliver net zero targets set
in 2022, in particular in 2023 by agreeing
carbon-zero pathways with SBTi
SBTi dialog opened in June 2023, with, after full review, near-term Scope 1,
2 and 3 targets validated by SBTi in February 2024. Scope 1 and 2 emissions
further reduced in 2023, seeing a 26.9% reduction below the 2019 baseline
6. Launch of the global Mobility Programme Global Mobility programme launched June 2023 to support the development
ofpotential future leaders and enhance client service
7. Enhance the global Diversity &
Inclusionprogramme
During the year, the Group’s commitment to further improving diversity and
inclusion was recognised through:
being awarded the UK EDI (Equality, Diversity and Inclusion) Programme of
the Year at Inspiring Women in Property Awards hosted by Property Week;
recognition through Bisnow’s UK Rise Initiative of Savills UK as one of the
companies leading the charge to improve diversity in real estate;
Savills UK being named as exemplar in EG’s 2022 LGBTQ+ Attitudes & Actions;
Savills UK being awarded the Times Graduate Employer of Choice for the
seventeenth consecutive year and ranked 1st in the Times Rate My Placement
for Apprentices for the second year;
Savills North America being a finalist for the Crain’s New York Business
Diversity Champion recognition at the annual Excellence in Diversity and
Inclusion Awards;
Savills North America being awarded Bisnow’s Rise Initiative for dedication
toadvanced diversity; and
FTSE Women Leaders 2023 ratio 37.4% (2022 : 36.3%) Savills (from 16.6% in 2017).
8. Confirm succession plans across all
Regionsand refresh leadership training
to ensure that this supports the agreed
succession plans
Strong progress on succession plans across all Principal Businesses with work
ongoing at year end
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
138
Annual report and accounts 2023
Mark Ridley continued:
Target Achievement
9. Ensure a continued focus on appropriate
cost-savings and efficiencies, particularly
within EMEA and North America, as well
as efficiency modelling across our global
officenetwork
Whilst maintaining core bench-strength; targeted restructuring, secured
operational efficiencies and significant annualised savings implemented in
2023ahead of Board planning, including:
North America restructuring of platform support;
In CEME reset of Germany capital markets and French leasing teams
andchanges of leadership in Italy and Poland;
In mainland China: second tier city leasing offering rationalised;
In the UK: residential development sales offering restructured; and
In Savills IM: Germany, UK and APAC platforms rationalised to drive
operational efficiency.
10. Consider merger and acquisition
opportunities in light of market conditions,
with particular focus on diversification
in North America and increased scale in
CEME, as well as scoping the requirement
for Facilities Management services as
Portfolio Solutions develops
Growth strategies progressed ahead of the Board’s plans, with in particular in
2023 the acquisition of (a) the residential businesses of BeLiving Srl (Italy) and
Predibisa (Portugal) and recruitment of a team to head Savills new Barcelona
residential office; (b) the Site 8 retail property management business in
Australia; (c) focused retail automotive consultancy and agency business APC
Holdings in the UK; (d) Prime Retail agency and consultancy business Nash
Bond in the UK; (e) the recruitment of a Life Sciences team in the key San Diego
life sciences market in the US; and in relation to Savills IM the formation of a US
real estate debt management JV with Quadrant Real Estate
Achievement was 8 out of 10 with ongoing work at year end in relation to succession plans and growth opportunities
which were impacted by market conditions.
Simon Shaw:
Target Achievement
1. Consider merger and acquisition
opportunities in light of market conditions,
with particular focus on diversification in
North America and increased scale in EMEA,
as well as scoping the requirement for
Facilities Management services as Portfolio
Solutions develops
Growth strategies progressed ahead of the Board’s plans, with in particular in
2023the acquisition of (a) the residential businesses of BeLiving Srl (Italy) and
Predibisa (Portugal) and recruitment of a team to head Savills new Barcelona
residential office; (b) the Site 8 retail property management business in Australia;
(c) focused retail automotive consultancy and agency business APC Holdings in the
UK; (d) Prime Retail agency and consultancy business Nash Bond in the UK; (e) the
recruitment of a life sciences team in the key San Diego life sciences market in the
US; and in relation to Savills IM the formation of a US real estate debt management
JV with Quadrant Real Estate
2. Oversight of Savills Investment Management
and specifically:
work with the SIM CEO to manage the
high-level Samsung relationship
oversight of any proposed material
SavillsIM corporate transactions and
market mapping
promote launch of Natural Capital fund
ensure that appropriate succession plans
are in place and that smooth transfer of
scheduled leaver responsibilities occurs
The progression of the Samsung relationship which has provided in excess of
US$1bn of seed capital to agreed Savills IM strategies since Samsung took a
minority interest in Savills IM in December 2021
Entry into the North American debt management market achieved through the
agreement of a JV with US real estate debt manager, Quadrant Real Estate
Natural Capital product developed and marketing underway with prospective
investors and consultants with a view to first close being achieved at the end
ofH1 2024
Succession plans successfully implemented with Savills IM leadership further
strengthened with, in particular, the appointment of a new UK/CEME Head of
Equity; and Global Head of Strategy & Capital Raising Business
3. US: position the business for improved
performance as markets recover including
diversification of services
North America leadership and management restructured, including the
introduction of Divisional Leadership Boards for Portfolio Solutions, Brokerage
and Consultancy Services to lead those business lines. Operational platform
regeared to drive efficiency and position it to support future growth
4. Assist in implementation of ESG
strategywith particular reference to
sustainability Consultancy
Savills Earth Consultancy business developed in line with the Board’s plans
which included extending to include Strategy, Certification, Reporting, Net Zero
Transition, Climate Resilience & Risk
Savills ‘Green Fit’ launched, including turnkey solutions on asset repositioning
&Project Management services, and all well received by clients
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Simon Shaw continued:
Target Achievement
5. Subject to the effect of overall market
conditions ensure focus on margin
improvement persists for each Regional
Business including identifying and
sponsoring cost and operating efficiency
improvements (including through
adoptionof technology)
Significant operational efficiencies and annualised savings delivered ahead
ofthe2023 Board plan including:
North America restructuring of platform support;
In CEME, reset of Germany capital markets and French leasing teams
andchanges of leadership in Italy and Poland;
In mainland China: second-tier city leasing offering rationalised;
In the UK: residential development sales offering restructured; and
In Savills IM: Germany, UK and APAC platforms rationalised to drive
operationalefficiency.
6. Manage the Group’s cash resources
includinginvestment and Shareholder
distribution policy
Exceeded the Board’s 2023 cash target, to end year with net cash of £157.3m
following management action to, in particular, limit discretionary spend given
challenging market conditions
7. Oversee and sponsor the Group’s multi-year
technology initiatives, to maximise cross-
fertilisation of initiatives including:
UK Valuations Digitisation programme
continued roll-out
Advance phase II Athena property
database progressive roll-out and
integration of unique data (eg Icans)
Continued roll-out across Valuation disciplines of proprietary digital platform
providing an end-to-end for managing the workflow across valuers and
mitigating risk, now used by all valuers in the UK ahead of plan for 2023
Successfully integrated new tenant risk, relationship and asset ownership
datasets into commercial property database. Delivered new roadmap features.
Active users grown significantly, now over 80% of the target user group
acrossthe UK
8. Continue the progressive harmonisation of
accounting systems across the Group based
on AX Dynamics implementations where
economically viable including upgrading
UKto D365
Continued delivery of ongoing Dynamics F&O (formerly AX) finance system
implementation, launching in four markets which was ahead of the 2023 target
9. Sponsor well-governanced project to
implement Dynamics AX and HR system in
North America (three-year programme)
Delivery of multi-year North America finance and HR system on track with
launchscheduled during 2024
10. Ensure Group Cyber Security Committee
(‘GISC’) meets its objectives to minimise
cyber risk as far as practicable
GISC met quarterly to consider security enhancement in the light of emerging
market practice and the Group’s experience. In 2023 the GISC monitored the
progress made by the Principal Businesses to further improve security and in
this respect considered the results of Qualys vulnerability testing and incident
causes and responses and the progress made in retiring end-of-life servers (eight
remaining in CEME at end 2023; 75 servers to be retired in APAC in January
2024, with the remainder targeted for retirement by end Q1, 2024) each quarter
and agreed further actions. Employee phishing responses continue to decline.
ISO27001 certification achieved in the UK in October 2023
Achievement was 8 out of 10 with ongoing work at year end in relation to implementation of a multi-year North
America finance and HR system and growth opportunities which were impacted by market conditions.
Based on the above, the overall outcome was 80% of maximum for each of the Executive Directors.
As described in the Chair’s letter earlier in this report, the Committee considered the formulaic outcome of 47% of
maximum and deemed it to be appropriate and that it reflected the financial and non-financial performance of the
business and the experience of stakeholders. This represented the following values:
Chief Executive Officer – £1,530,000
Chief Financial Officer – £1,177,000
In line with the Policy, 50% of the overall awards, above an amount equal to their respective base salaries, will be
deferred for a further three-year period in the form of shares.
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
140
Annual report and accounts 2023
Long-term incentives (audited)
The PSP award granted in 2021 was subject to performance in the three years to 31 December 2023. Following an
assessment of Savills performance against targets set at grant, the Committee determined that 12.3% of the award
hadmet the performance criteria and will be released at the end of the two-year holding period in November 2026.
The targets and Savills performance were as follows:
Weighting
Threshold target
(25% vesting)
Maximum target
(100% vesting)
Savills
performance
Vesting (% of
maximum)
Relative TSR versus FTSE Mid 250
index (excluding investment trusts)
1/3 Equal to index Outperform index
by 8% p.a.
3.98% versus
the Index
performance
of 5.76%
0%
% EPS growth 1/3 RPI plus 6% p.a.
compounded
RPI plus 12% p.a.
compounded
0% p.a. 0%
Return on capital employed 1/3 15% 25% 17% 37%
As described in the Chair’s letter earlier in this report, the Committee considered this outcome to be appropriate,
mindful of the potential for windfall gains, and reflects the financial and non-financial performance of the business
andthe experience of stakeholders.
Non-Executive Directors fees (audited)
The Non-Executive Director fees for 2023 were as follows:
Nicholas
Ferguson
(Chair)
Stacey
Cartwright Philip Lee
Richard
Orders
Dana
Roffman
Marcus
Sperber
Florence
Tondu-
Mélique John Waters
Basic fee £226,600 £57,650 £57,650 £57,650 £57,650 £57,650 £57,650 £2,974
Additional fees:
Senior Independent
Director £8,000
Remuneration
Committee Chair £10,000
Audit Committee
Chair £15,000
2023 Total £226,600 £80,650 £57,650 £67,650 £57,650 £57,650 £57,650 £2 ,974
2022 Total £220,800 £79,175 £56,175 £66,175 £56,175 £2,620 £56,175 –
Notes:
Marcus Sperber joined the Board effective 15 December 2022.
John Waters joined the Board effective 13 December 2023.
Nicholas Ferguson retired from the Board effective 31 December 2023.
The fees payable to the Non-Executive Directors are determined by the Non-Executive Chair and the Executive
Directors after considering external market data and individual roles and responsibilities. The fee for the Board Chair
isdetermined by the Remuneration Committee.
The fee payable to Nicholas Ferguson as Chair during 2023 was £226,600 p.a. (2022: £220,800 p.a.). The base fee for
the Non-Executive Directors for 2023 was £57,650 p.a. (increased from £54,700 effective 1 July 2022 in line with RPI),
with additional fees payable to the Senior Independent Director (£8,000 p.a.), the Audit Committee Chair (£15,000
p.a.) and the Remuneration Committee Chair (£10,000 p.a.).
The Non-Executive Directors do not participate in incentive arrangements or share schemes.
141
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Operation of Policy in 2024
Chair Fee
The Chair fee effective 1 January 2024 is £240,000 p.a. The fee level was set having regard to the size and complexity
of Savills, which continue to increase through successful business diversification, and the expected future time
commitment of the role. The fee will be reviewed, although not necessarily increased, effective 1 July 2025.
Base salary
The base salaries of the Executive Directors will be unchanged from March 2024 as follows:
Group Chief Executive Officer: £311,000; and
Group Chief Financial Officer: £238,000.
In line with our Policy, the base salaries for the Executive Directors continue to be positioned significantly below
market median against the FTSE 250 Index.
Variable remuneration
Annual performance-related profit share
The maximum annual performance-related profit share opportunity for 2024 will remain unchanged and will be:
£3.25m for the Group Chief Executive Officer; and
£2.5m for the Group Chief Financial Officer.
For the 2024 performance-related profit share, 75% of award potential will reflect the Group’s underlying
profit performance and 25% of award potential will reflect delivery against a mix of personal, strategic and
operationalobjectives.
The Committee considers prospective disclosure of individual objectives to be commercially sensitive and disclosure
will therefore be on a retrospective basis. The targets are similarly challenging to those set in 2023 having had regard
to current internal plans, external expectations for our future performance and current market conditions.
The Committee retains a general discretion to adjust the formulaic outcome to reflect exceptional events over the
performance period.
Performance Share Plan
The remuneration policy is for maximum awards of 200% of base salary. The PSP awards for 2024 will be 200% of
base salary for both Executive Directors.
Awards will vest subject to the satisfaction of absolute EPS growth targets for one-third of the award, TSR
performance for one-third of the award and Return on Capital Employed for the remaining one-third of the award.
The Committee is still in the process of agreeing the precise targets and full details of these will be set out in the RNS
announcement issued immediately after the PSP award is granted.
The awards made to Executive Directors will also be subject to a holding period so that any PSP awards for
whichthe performance vesting conditions are satisfied will not normally be released for a further two years from
the third anniversary of the original award date. Dividend accrual for PSP awards will continue until the end of the
holdingperiod.
As detailed in the Chair’s Introductory Statement, the Committee is in the process of finalising the specific targets
to apply to the 2024 PSP awards given current market conditions and will include the targets in the market
announcement of the awards.
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
142
Annual report and accounts 2023
Relative spend on pay
To provide context and outline how remuneration for Executive Directors compares with other disbursements, such
as dividends and general employment costs the table below illustrates general employment costs, Executive Director
reward, tax charges and dividend payments to Shareholders in 2023 and 2022.
2023
£m
2022
£m
%
Movement
Movement
Employment costs 1,496.3 1,509.8 -1
Underlying profit before tax 94.8 164.6 -42
Dividend payment to Shareholders 31.2 49.0 -36
Executive Director remuneration 3.8 4.8 -21
Ta x 138.3 150.4 -8
Employment costs (excluding arrangements for Executive Directors) comprise basic salaries, profit share and
commissions, social security costs, other pension costs and share-based payments
Tax comprises corporation tax, employers’ social security and business rates and equivalent payments
The dividend cost for 2023 comprises the cost of the final dividend recommended by the Board (amounting to
£19.0m) alongside the supplemental interim dividend (amounting to £2.7m), payment is subject to Shareholder
approval at the Company’s AGM scheduled to be held on 15 May 2024 (payable to Shareholders on the Register
ofMembers as at 12 April 2024) and the interim dividend (£9.5m) paid on 2 October 2023
Executive Director remuneration is the remuneration paid to the Group Chief Executive Officer and Group Chief
Financial Officer role holders and comprises basic salaries, profit share, social security costs, pension costs and
share-based payments.
Total Shareholder return and Group Chief Executive Officer remuneration
The Total Shareholder Return delivered by the Company over the last ten years is shown in the chart below.
The Board believes that the FTSE 250 Index (excluding investment trusts) remains the most appropriate index
againstwhich to compare TSR over the medium term as it is an index of companies of similar size to Savills. Savills
TSR relative to that of the FTSE 350 Super Sector Real Estate Index is also shown, as this index better reflects
conditions in real estate markets over recent years.
0
50
100
150
200
250
300
Dec
23
Dec
22
Dec
21
Dec
20
Dec
19
Dec
18
Dec
17
Dec
16
Dec
15
Dec
14
Dec
13
Savills FTSE 250 (excluding investment trusts) FTSE 350 Super Sector Real Estate
143
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Pay for performance
Year Chief Executive Officer
Total single figure
remuneration
£’000
Underlying
profit
£m
Underlying
profit annual
% change
Annual variable
element:
performance-
related profit
share – annual
award against
maximum
potential
%
Long-term
incentive to
vest (maximum
potential of
award)
%
2023 Mark Ridley 1,922 94.8 -42 36 12
2022 Mark Ridley 2,815 164.6 -17.8 67.5 11
2021 Mark Ridley 3,504 200.3 107.3 100 100
2020 Mark Ridley 1,294 96.6 -32.6 38 23
2019 Mark Ridley 2,377 143.4 -0.2 84 50
2018 Jeremy Helsby 2,196 143.7 +2.3 82 41
2017 Jeremy Helsby 2,507 140.5 +3.5 80 84
2016 Jeremy Helsby 2,595 135.8 +12 98 50
2015 Jeremy Helsby 2,298 121.4 +21 100 N/A
2014 Jeremy Helsby 3,279 100.5 +34 100 100
Total remuneration includes, as required, the notional value of PSP awards and executive share options which vested
(but were not exercised) in those years (note that no PSP awards were made in 2013 with the consequent effect on
Total Single Figure Remuneration in 2015 compared to the other years).
Annual percentage change in remuneration of Directors and employees
The table below shows a comparison of the annual change of each individual Director’s pay to the annual change
in average employee pay. Average employee pay is based on a Full Time Equivalent (‘FTE’) calculation.
Percentage change in remuneration
from 31/12/2022 to 31/12/2023
Percentage change in remuneration
from 31/12/2021 to 31/12/2022
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Mark Ridley
1
0.9 1.2 -31 4.5 -59.9 5.2
Simon Shaw 0.9 0 -31 4.6 0 7.9
Nicholas Ferguson 2.6 n/a n/a 2.7 n/a n/a
Stacey Cartwright
2
2.6 n/a n/a 1.9 n/a n/a
Philip Lee
3
2.6 n/a n/a 2.7 n/a n/a
Richard Orders
3
2.6 n/a n/a 5 n/a n/a
Dana Roffman 2.6 n/a n/a 2.7 n/a n/a
Marcus Sperber
4
n/a n/a n/a n/a n/a n/a
Florence Tondu-Mélique 2.6 n/a n/a 2.7 n/a n/a
John Waters
5
n/a n/a n/a n/a n/a n/a
All UK employees
6
3.9 5.4 -14.7 8.5 3.5 -13.5
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
144
Annual report and accounts 2023
Percentage change in remuneration
from 31/12/2020 to 31/12/2021
Percentage change in remuneration
from 31/12/2019 to 31/12/2020
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Mark Ridley
1
0 159 165 2 1 -52.5
Simon Shaw 0 0 165 2 -28 -52.5
Nicholas Ferguson 0 n/a n/a 0 n/a n/a
Stacey Cartwright
2
12 n/a n/a 9 n/a n/a
Philip Lee
3
n/a n/a n/a n/a n/a n/a
Richard Orders
3
n/a n/a n/a n/a n/a n/a
Dana Roffman 0 n/a n/a n/a n/a n/a
Marcus Sperber
4
n/a n/a n/a n/a n/a n/a
Florence Tondu-Mélique 0 n/a n/a 1 n/a n/a
John Waters
5
n/a n/a n/a n/a n/a n/a
All UK employees
6
-3.9 -1.1 34.3 -2.4 2.8 -7.3
Notes:
1. Mark Ridley’s 2021 benefits include £17,539 cash equivalent of additional holiday entitlement accruing under the Company’s loyalty holiday reward scheme
(andreflecting Mark Ridley’s 25th year of service).
2. Appointed Senior Independent Director 1 January 2021.
3. Appointed 1 January 2021.
4. Appointed 15 December 2022.
5. Appointed 13 December 2023.
6. Salary, benefits and bonus is compared against full-time equivalent UK employees.
CEO to employee pay ratio
The table below shows how the CEO’s single figure remuneration (as taken from the single figure remuneration table
on page 136) compares to the equivalent single figure remuneration for full-time equivalent UK employees, ranked at
the 25th, 50th and 75th percentile.
Year Method
25th percentile pay
ratio Median pay ratio
75th percentile pay
ratio
2023 Option A 76 : 1 54 : 1 30 : 1
2022 Option A 129 : 1 86 : 1 47 : 1
2021 Option A 144 : 1 102 : 1 56 : 1
2020 Option A 64 : 1 40 : 1 22 : 1
Notes to the CEO to employee pay ratio:
The regulations provide three options which may be used to calculate the pay for the employees at the 25th percentile,
median and 75th percentile. We have used Option A, following guidance that this is the preferred approach of some
proxy Advisors and institutional Shareholders. Option A captures all relevant pay and benefits for all employees in line
with the single figure for remuneration calculated for Executive Directors.
The ratios shown are representative of the FTE 25th percentile, median and 75th percentile pay for UK employees
within the Group as measured on 31 December 2023.
The pay for part-time employees has been grossed-up to one FTE.
The Committee has reviewed the employee data and believes the median pay ratio to be consistent with the pay,
reward and progression policies for the Company’s UK employees over the period. The decrease in the ratio for 2023
compared to 2022 reflects our pay for performance philosophy and focus on the pay of more junior employees to
continue to help mitigate the increase in the cost of living which particularly impacts at this level. As a result, the
continuing challenging business environment in 2023 resulted in a relative decrease in total remuneration for the
CEOcompared to the wider workforce.
145
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
The CEO’s pay is based on the ‘single figure’ of remuneration set out on page 136 of this report. Because a large
portion of the CEO’s pay is variable, the pay ratio is heavily dependent on the outcomes of variable pay plans and,
inthe case of long-term share-based awards, also share price movements.
Casual employees and those on zero-hours contracts have their pay annualised based on their hourly rate, using
37.5hours per week x 52 weeks per year.
The total pay and benefits and the salary component of total pay and benefits for the employees at each of the
25thpercentile, the median and the 75th percentile are shown below:
Year
Salary Total pay and benefits
25th percentile Median 75th percentile 25th percentile Median 75th percentile
2023 £22,459 £29,565 £46,438 £25,147 £35,881 £63,726
Notes to the calculations:
1. For Savills IM, Partnership members within the Affordable and DRC businesses are excluded from this report.
Pensions disclosure (audited)
During 2023 Company pension allowances for the Group Chief Executive Officer and the Group Chief Financial Officer
were 8% of base salaries, consistent with the pension contributions for the wider UK workforce.
Mark Ridley no longer accrues a pension benefit under the Company’s legacy defined benefit pension plan. The value
of the legacy benefit is shown below.
Executive Director
Defined benefit
pension accrued at
31December 2023
Defined benefit
pension accrued at
31December 2022
Defined benefit
pension accrued at
31December 2021
Defined benefit
pension accrued at
31December 2020
Mark Ridley 42,339 39,501 36,468 35,763
Mark Ridley’s accrued pension ceased to be linked to salary from 29 February 2016, at which point the accrued
pension was £31,875 p.a. The pension now increases in line with the standard revaluation provisions of the Plan that
apply to all deferred pensioners. The amounts shown include revaluation to 31 December 2020, 31 December 2021,
31December 2022 and 31 December 2023 respectively. No additional benefit is due in the event of early retirement.
Share interests
Details of shares in the Company which the Directors beneficially held or had a beneficial interest in as at 31 December
2023 are shown below.
Where the performance conditions attaching to any PSP award have been satisfied and the award is due
to vest in the future, the PSP award shares (discounted for anticipated tax liabilities) will count towards the
shareholdingrequirements:
Executive Directors
Number
of shares
(including
beneficially
held under the
SIP)
Unvested
shares with
performance
conditions
attaching
satisfied
(discounted
for anticipated
tax liabilities)
(PSP)
Total share
interests
that count
towards the
shareholding
requirement
Unvested
shares subject
to performance
conditions
(PSP)
Deferred
share bonus
plan awards
(vesting not
subject to
performance
conditions)
(DSBP)
Shareholding
requirement
1
Extent to which
shareholding
guideline met
Mark Ridley 231,854 37,461 269,315 201,533 222,952 224,665 120%
Simon Shaw 182,579 28,646 211,225 154,097 168,951 171,930 123%
1 Shareholding requirement of 700% of salary for both Executive Directors.
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
146
Annual report and accounts 2023
The Company currently applies shareholding requirements that the Group Chief Executive Officer and Group Chief
Financial Officer hold shares to the value of seven times their respective base salaries. New Executive Directors will
beexpected to build holdings to this level over time, principally through the retention of shares released to them
(after settling any tax due) following the vesting of share awards.
At
31December
2023
Nicholas Ferguson 39,286
Stacey Cartwright 4,983
Philip Lee –
Richard Orders –
Dana Roffman –
Marcus Sperber –
Florence Tondu-Mélique –
John Waters –
As at 13 March 2024, no Director had bought or sold shares since 31 December 2023.
The Savills Sharesave Scheme (audited)
Directors
At
31December
2022
Granted
during year
Exercised
during year
Lapsed
during year
At
31December
2023
Market value
at date of
exercise
Exercise price
per share
Exercisable
within six
months from
Mark Ridley 2,371 – – – 2,371 – 759p 01.11.25
Simon Shaw 2,371 – – – 2,371 – 759p 01.11.25
Scheme interests granted in 2023 (audited)
2023 PSP awards were made on 21 April 2023. As set out in the RNS announcement the terms of the award are
asfollows:
The following table sets out details of awards made to Executive Directors under the PSP in 2023. The Remuneration
Committee has full discretion to ensure that the final outturns reflect all relevant factors, including consideration of
anywindfall gains.
Type of
award
Basis of
award (face
value) 200%
base salary
Performance
period
% vesting
for threshold
performance
% vesting for
maximum
performance Performance criteria
Mark Ridley Nil-cost
options
£622,000
1 January
2023 to
31 December
2025
25% 100%
– One-third of award:
Earnings per share growth
– One-third of award:
Relative Total Shareholder
Return against the FTSE 250
(excluding investment trusts)
– One-third of award:
Return on Capital Employed
Simon Shaw Nil-cost
options
£476,000
147
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Awards will vest subject to the satisfaction of EPS targets for one-third of the award as follows:
25% (ie threshold) of the element to vest if the Company’s EPS growth is 4% p.a. compounded;
100% (ie the maximum) of the element to vest if the Company’s EPS growth is 10% p.a. compounded or more; and
with straight-line vesting between the two points.
A further one-third of the award will vest subject to the satisfaction of relative TSR performance versus the FTSE Mid
250 Index (excluding investment trusts) (‘the Index’) as follows:
25% (ie threshold) of the element to vest if the Group’s TSR performance equals that of the Index;
100% (ie the maximum) of the element to vest if the Group’s TSR performance outperforms the Index by 8% p.a.;
and with straight-line vesting between the two points.
A further one-third of the award will vest subject to the satisfaction of Return on Capital Employed targets as follows:
25% (ie threshold) of the element to vest if the Company’s ROCE is 12%;
100% (ie the maximum) of the element to vest if the Company’s ROCE is 22% or more; and
with straight-line vesting between the two points. ROCE is defined as:
Underlying profit before tax plus JV tax and net interest cost (excluding finance lease interest)
(Opening total debt plus Shareholders’ funds) plus (closing total debt plus Shareholders’ funds) / 2
The range of targets set for both EPS and ROCE were set with reference to both internal planning and external
expectations for our future performance. The targets were set to be realistic at the lower end of the performance
range and stretching at the top end of the range. Overall, the targets were considered similarly challenging to those
targets set in prior years.
The awards made to Executive Directors will also be subject to a holding period so that any PSP awards for which the
performance vesting conditions are satisfied will not normally vest for a further two years from the third anniversary
ofthe original award date. Dividend accrual for PSP awards will continue until the end of the holding period.
Awards were also made during the year under the Deferred Share Bonus Plan. Details of awards under this plan are
set out on the following page.
The Performance Share Plan (‘PSP’)
Number of shares
Directors
At
31 December
2022
Awarded
during
year
Vested
during
year
Lapsed
during
year
At
31 December
2023
Date of
grant
Closing
mid-market
price of a
share the
day before
grant
Market
value at
date of
vesting
First vesting
date
Mark Ridley
9,892 – 9,892 – – 16.04.18 976.5p 976.6p 16.04.23
62,997 – – – 62,997 15.04.19 917.5p – 15.04.24
70,828 – – 63,146 7,682 30.06.20 833.0p – 30.06.25
41,933 – – – 41,933 25.11.21 1,407p – 25.11.26
56,803 – – – 56,803 20.04.22 1,095p – 20.04.27
– 65,336 – – 65,336 21.04.23 952.0p – 21.04.28
Simon Shaw
10,410 – 10,410 – – 16.04.18 976.5p 976.6p 16.04.23
48,174 – – – 48,174 15.04.19 917.5p – 15.04.24
54,141 – – 48,269 5,872 30.06.20 833.0p – 30.06.25
32,054 – – – 32,054 25.11.21 1,407p – 25.11.26
43,397 – – – 43,397 20.04.22 1,095p – 20.04.27
– 50,000 – – 50,000 21.04.23 952.0p – 21.04.28
DIRECTORS’ REMUNERATION REPORT continued
Annual Report on Remuneration continued
148
Annual report and accounts 2023
The PSP award granted in 2020 was subject to performance in the three years to 31 December 2022. Following the
assessment of Savills performance against targets set at grant, the Committee determined that 10.9% of the award
hadmet the performance criteria and will vest at the end of the two-year holding period in June 2024. The remainder
of the award lapsed during the year.
Awards over 20,302 shares, together with a further 2,629 shares in lieu of dividends, vested under the PSP to
Executive Directors during the year. A subscription cost of 2.5p nominal value per share is payable on actual receipt
ofshares. The total pre-tax gain on awards vested during the year under the PSP was £223,371.
The Deferred Share Bonus Plan (‘DSBP’)
Number of conditional share awards
Directors
At
31 December
2022
Awarded
during year
Vested
during year
At
31 December
2023 Date of grant
Closing mid-
market price
of a share the
day before
grant
Market value
at date of
vesting
First vesting
date
Mark Ridley 85,446 – 85,446 – 27.04. 20 884.5p 945.2p 27.04.23
23,926 – – 23,926 17.0 6. 21 1,174p – 17.06.24
90,045 – – 90,045 20.04.22 1,095p – 20.04.25
– 108,981 – 108,981 21.04.23 952.0p – 21.04.26
Simon Shaw 63,821 – 63,821 – 27.04.20 884.5p 945.2p 27.04.23
17,747 – – 17,747 17.06.21 1,174p – 17.06. 24
67,328 – – 67,328 20.04.22 1,095p – 20.04.25
– 83,876 – 83,876 21.04.23 952.0p – 21.04.26
Awards granted under the DSBP to Executive Directors during the year were based on 50% of the 2022 annual
performance-related profit share above an amount equal to their respective base salaries in line with the Policy.
Underthe DSBP awards over 149,267, shares and 11,166 shares in lieu of dividends vested to Executive Directors during
the year. Mark Ridley and Simon Shaw also received cash in lieu of Dividend Shares due under DSBP vestings of
£14,526 and £10,850 respectively. The total pre-tax gain on DSBP awards vested during the year was £1,516,363.
NoDSBP awards lapsed.
During the year, the aggregate gain on the exercise of share options and shares vested was £1,739,734. The mid-
market closing price of the shares at 29 December 2023, the last business day of the year, was 969p and the range
during the year was 763.5p to 1,055p.
Payments to past Directors
No payments to past Directors were made during the year that are required to be reported under the Companies
(Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019.
Payments for loss of office
No payments for loss of office were made during the year.
External directorships
Savills recognises that its Executive Directors may be invited to become non-executive directors of other companies.
Such non-executive duties can broaden experience and knowledge which can benefit Savills. Subject to approval by
the Board and any conditions which it might impose, the Executive Directors and Group Executive Board members are
allowed to accept external non-executive directorships and retain the fees received, provided that these appointments
are not likely to lead to conflicts of interest. For non-executive directorships which are considered to arise by virtue of
an Executive Director’s or Group Executive Board member’s position within Savills, the fees are paid directly to Savills.
During 2023, Simon Shaw received a fee of £80,000 in relation to his continuing appointment as Non-Executive Chair
of Synairgen plc which he was permitted to keep (as this appointment is not linked to his role within theCompany).
149
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT continued
Service contracts
The Executive Directors have rolling service contracts which are terminable on 12 months’ notice by either the
Company or the Executive Director.
Directors Contract date
Mark Ridley 1 May 2018
Simon Shaw 16 March 2009
The Non-Executive Directors and the Chair have letters of appointment. In line with the UK Corporate Governance
Code, all Directors are subject to annual re-election at the AGM. The Chairman’s letter of engagement allows for
six months’ notice. Appointment of other Non-Executive Directors may be terminated by either party with three
months’notice.
Director Date appointed to Board End date of current letter of appointment
Stacey Cartwright 1 October 2018 31 December 2026
Nicholas Ferguson* 26 January 2016 26 January 2025
Philip Lee 1 January 2021 31 December 2026
Richard Orders 1 January 2021 31 December 2026
Dana Roffman 1 November 2019 31 October 2025
Marcus Sperber 15 December 2022 14 December 2025
Florence Tondu-Mélique 1 October 2018 31 December 2024
John Waters 13 December 2023 12 December 2026
* Mr N E H Ferguson retired from the Board effective 31 December 2023.
The Directors’ service contracts and letters of appointment are available for inspection at the Company’s City of
London office, 15 Finsbury Circus, London EC2M 7EB.
Shareholder votes on remuneration matters
The table below shows the voting outcomes for the 2022 Annual Remuneration Report at the AGM held on 17 May
2023 and the Directors’ Remuneration Policy approved at the AGM held on 11 May 2022.
Number of
votes ‘For’ and
discretionary % of votes cast
Number of
votes ‘Against’ % of votes cast
Total number
of votes cast
Number
of votes
‘Withheld’*
2022 Annual Directors’
Remuneration Report 104,780,580 88.99% 12,967,742 11.01% 117,748,322 662,899
Directors’ Remuneration Policy 96,748,672 84.71% 17,464,743 15.29% 114,213,415 429,995
* A vote withheld is not a vote in law.
Annual Report on Remuneration continued
150
Annual report and accounts 2023
DIRECTORS’ REPORT
In accordance with the UK Financial Conduct Authority’s
Listing Rules (LR 9.8.4C), the information to be included
in the Annual Report and Accounts, where applicable,
under LR 9.8.4, is set out in this Directors’ Report.
Other information incorporated into this Report by
reference can be found at:
Page/Note
Strategic Report 6
Principal developments 22
Material existing and emerging risks and
uncertainties 30
Statement of Directors’ responsibilities 155
Corporate Governance Statement 99
Engagement with UK employees 48
Greenhouse gas emissions 68
Engagement with suppliers, customers
and others in a business relationship 96
Financial Risk Management 184
UK Corporate Governance Code
The Company has complied throughout the year with
all relevant provisions of the 2018 UK Corporate
Governance Code (the ‘Code’). A copy of the Code
is available from the Financial Reporting Council’s
websiteat www.frc.org.uk.
Operations
The Company and its subsidiaries (together the ‘Group’)
operate through a network of offices and associates
throughout the Americas, the UK, Continental Europe,
Asia Pacific, Africa and the Middle East.
Results and dividends
The results for the Group are set out in the consolidated
income statement on page 166 which shows a
reported profit for the financial year attributable to the
Shareholders of the Company of £40.8m (2022: £119.4m).
An interim dividend of 6.9p per ordinary share amounting
to £9.5m was paid on 2 October 2023. It is recommended
that a final dividend of 13.9p per ordinary share
(amounting to £19.0m) is declared by the Company at
the AGM on 15 May 2024 and, subject to Shareholder
approval, paid on 23 May 2024 to Shareholders on the
register of members as at the close of business on 12 April
2024 together with a supplemental interim dividend of 2p
per ordinary share (amounting to £2.7m). More details of
the proposed dividend and the Company’s performance
can be found in the Chair’s Statement on pages 6 to 9.
Going concern
The Group’s business activities, together with the factors
likely to affect its future development, performance and
position are set out in the Strategic Report. The financial
position of the Group, its cash flows and liquidity position
are described in the Chief Financial Officer’s Review, with
details of the Group’s treasury activities and exposure
to financial risk included in Note 3 to the Consolidated
Financial Statements.
The Group has prepared its going concern assessment
for the period to the end of June 2025. As in prior years,
the Board undertook a strategic business review in
the current year taking account of the Group’s current
position and prospects, the Group’s strategic plan, and
the Group’s principal risks and the management of
those risks, as detailed in the Annual Report and the
Board’s risk appetite as detailed in the Strategic Report.
Sensitivity analysis was also undertaken, including
financing projections, to flex the financial forecasts
under several severe downside scenarios, which involved
applying different assumptions to the underlying
forecasted revenues, costs and underlying profits both
individually and in aggregate. These scenarios assess
the potential impact from several macro-economic risks,
including a severe global economic downturn analogous
to that experienced during the Global Financial Crisis in
2008/09. The results of this sensitivity analysis showed
that the Group would retain liquidity and maintain
significant available facility and covenant headroom to
be able to withstand the impact of such scenarios over
the period of the financial forecast, as a result of the
resilience and diversity of the Group, underpinned by
astrong balance sheet.
Based on the Group’s positive net cash position of
£157.3m (cash and cash equivalents less overdrafts
in notional pooling arrangements and borrowings)
and undrawn £360.0m revolving credit facility at the
year-end, as described in the Chief Financial Officer’s
review, combined with the assessment explained above,
the Directors have formed the judgement at the time
of approving the financial statements, that there is a
reasonable expectation that the Group has adequate
resources to continue as a going concern for a period
of at least 12 months from the date of the approval of
the financial statements until at least June 2025. For
thisreason, they continue to adopt the going concern
basis of accounting in preparing the Consolidated
Financial Statements.
Events after the reporting period
There have been no material events affecting the Group
or the Company since 31 December 2023.
151
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Directors
Biographical details of the current Directors are shown
on pages 86 to 88. All the Board members served
throughout the year, save for John Waters who was
appointed on 13 December 2023. Nicholas Ferguson
retired from the Board effective 31 December 2023.
Asat 31 December 2023 the Board comprised the Non-
Executive Chair, two Executive Directors and six Non-
Executive Directors.
Interests in the issued share capital of the Company held
at the end of the period under review and up to the date
of this Report by the Directors or their families are set
out on pages 146 and 147 of the Remuneration Report.
Details of share options held by the Directors pursuant
to the Company’s share option schemes are provided in
the Remuneration Report on pages 147 to 149. It is the
Board’s policy that the Group Chief Executive and Group
Chief Financial Officer hold shares in the Company to
the value of seven times their respective base salaries
(£2,177,000 and £1,666,000 respectively).
Directors’ interests in significant contracts
No Directors were materially interested in any contract
ofsignificance.
Indemnification of Directors
In accordance with the Company’s Articles of
Association, and to the extent permitted by law, the
Directors and the Group Legal Director & Company
Secretary are granted an indemnity, in respect of any
liabilities incurred as a result of their holding office.
Suchindemnities were in force during the financial year
to 31 December 2023 and up to the date of this Report.
The Company also maintains appropriate insurance
cover in respect of legal action against its Directors
andOfficers.
Management Report
This Directors’ Report, on pages 151 to 154, together
with the Strategic Report on pages 6 to 80, form the
Management Report for the purposes of DTR 4.1.5R.
Additional Information Disclosure
Pursuant to regulations made under the Companies
Act 2006 the Company is required to disclose certain
additional information. Those disclosures not covered
elsewhere within this Annual Report are as follows:
Share capital and major shareholdings
The issued share capital of the Company as at
31December 2023 comprised 144,389,919 2.5p ordinary
shares, details of which may be found on page 239.
The Company has only one class of share capital formed
of ordinary shares. All shares forming part of the ordinary
share capital have the same rights and each carries one
vote. The Directors have authority to allot and issue
ordinary shares and to disapply statutory pre-emption
rights. The powers are exercised under authority of
resolutions of the Company passed at the AGM.
Votes may be exercised at general meetings of the
Company, by members in person, by proxy or by
corporate representatives (in relation to corporate
members). The Articles provide a deadline for the
submission of proxy forms (electronically or by paper)
of not less than 48 hours before the time appointed for
the holding of the general meeting or the adjourned
meeting (as the case may be). A Shareholder can lose
their entitlement to vote at a general meeting where
that Shareholder has failed to provide the Company
with information concerning interests in their shares or
a call or other sum payable by the Shareholder to the
Company in respect of such shares remains unpaid.
There are no unusual restrictions on the transfer of
ordinary shares. The Directors may refuse to register
a transfer of a certificated share unless the instrument
of transfer is: (i) lodged at the registered office of the
Company or any other place as the Board may decide
accompanied by the certificate for the shares to be
transferred and such other evidence as the Directors
mayreasonably require to show the right of the
transferor to make the transfer; or (ii) in respect of
only one class ofshares.
The Directors may also refuse to register a transfer
of a share (whether certificated or uncertificated),
whether fully paid or not, in favour of more than four
personsjointly.
DIRECTORS’ REPORT continued
152
Annual report and accounts 2023
As at 31 December 2023 the Company had been
notifiedof the following interests in the Company’s
ordinary share capital in accordance with DTR 5. It
should be noted that these holdings are likely to have
changed since notified to the Company. However,
notification of any change is not required until an
applicable threshold is crossed.
Shareholders¹
Number of
shares¹ %¹
Liontrust Investment
PartnersLLP 7,210,255 5.04
Global Alpha Capital
Management Ltd. 7,194,238 5.03
BlackRock, Inc Not disclosed <5.00
Heronbridge Investment
Management LLP 7,131,812 4.99
Jupiter Fund
ManagementPlc 7,113,311 4.97
1. The names of Shareholders and percentages of issued share capital are
stated as per the notifications received and have not been subject to
independent verification by the Company or any other person. As such, the
above table should not be assumed to be a full and accurate record of all the
interests that are required to be notified to the Company under the DTRs.
No changes to the above have been disclosed to
the Company in accordance with DTR 5, between
31December 2023 and 13 March 2024.
As at 31 December 2023, the Savills plc 1992 Employee
Benefit Trust (the ‘EBT’) held 7,615,420 ordinary shares
and the Savills Rabbi Trust held 1,502,155 ordinary shares.
Any voting or other similar decisions relating to these
shares held in trust are taken by the trustees, who may
take account of any recommendation of the Company.
The EBT waives its right to receive Savills plc dividends.
For further details of the trusts please refer to Note
2.23to the financial statements.
Purchase of own shares
In accordance with the Listing Rules, at the AGM on
17 May 2023 Shareholders gave authority for a limited
purchase of Savills shares of up to 10% of the issued share
capital of the Company. During the year, no shares were
purchased under the authority.
The Board proposes to seek Shareholder approval at the
AGM on 15 May 2024 to renew the Company’s authority to
make market purchases of its own ordinary shares of 2.5p
each for cancellation, to be held in treasury, sold for cash
or (provided Listing Rule requirements are met) transferred
for the purposes of or pursuant to an employee share
scheme. Details of the proposed resolution are included
in the Notice of AGM circulated to Shareholders with this
Annual Report and Accounts (the ‘AGM Notice’).
Change of control
There are no significant agreements which take
effect, alter or terminate in the event of change of
control of the Company except that under its banking
arrangements, a change of control may trigger an
earlyrepaymentobligation.
Articles of Association
The Company’s Articles are governed by relevant
statutes and may be amended by special resolution of
the Shareholders in a general meeting.
Subject to the Articles, UK legislation and any directions
given by resolution in general meeting, the business of
the Company is managed by the Directors.
The Company’s rules about the appointment and
replacement of its Directors are contained in the
Articles. Unless determined by ordinary resolution of
the Company, the number of Directors shall be not
less than three and not more than 18. A Director is not
required to hold any shares in the Company by way of
qualification. However, as more fully described on page
146, in accordance with Board policy, the Executive
Directors are expected to build-up and maintain a
shareholding in the Company. The Board may appoint
any person to be a Director and such Director shall hold
office only until the next AGM when he or she shall then
be eligible for reappointment by the Shareholders. The
Articles provide that each Director shall retire from office
at the third AGM after the AGM at which he or she was
last elected. A retiring Director shall be eligible for re-
election. However, in accordance with the UK Corporate
Governance Code, all Directors of the Company are
subject to annual re-election.
Annual General Meeting
The AGM is to be held at 33 Margaret Street, London
W1G 0JD at 12 noon on 15 May 2024; details are
contained in the AGM Notice circulated to Shareholders
with this Annual Report and Accounts.
Half-Year Report
Like many other listed public companies, we no longer
circulate printed Half Year Reports to Shareholders.
Instead, half-year results statements are published on the
Company’s website. This is consistent with our target to
reduce printing and distribution costs.
Political contributions
The Company made no political contributions during
theyear (2022: £nil).
153
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
DIRECTORS’ REPORT continued
Employees’ policies and involvement
The Directors recognise that the quality, commitment
and motivation of Savills staff is a key element to the
success of the Group; see page 48 for more information
as to employee engagement.
The Group provides regular updates covering
performance, developments and progress to employees
through regular newsletters, video addresses, the
Group’s intranet, social media and through formal and
informal briefings. These arrangements also aim at
ensuring that all of our staff understand our strategy and
to build knowledge on the part of employees of matters
affecting the performance of the Group. The Group
also consults with employees so as to ascertain their
views in relation to decisions which are likely to affect
theirinterests.
Employees are able to share in the Group’s success
through performance-related profit share schemes
(see page 240 for more details) and for UK employees
(including Executive Directors), share plans which
include a Sharesave Scheme and a Share Incentive Plan
(‘SIP’). The Sharesave Scheme is an HMRC-approved
save-as-you-earn share option scheme which allows
participants to purchase shares out of the proceeds
of a linked savings contract at a price set at the time
of the option grant. Participants may elect to save
up to £500 per month and options may normally be
exercised in the six months following the maturity of
the linked three-year savings contract. The potential for
extending the Sharesave Scheme internationally remains
under consideration. The SIP is also HMRC-approved
and through which participants may make regular
purchases of shares (up to the current statutory limit
of £1,800 per year equating to £150 per month) from
pre-tax income. Shares under the SIP normally vest after
five years and are free from income tax and national
insurancecontributions.
Human rights and equal opportunities
We support the principles of the UN Universal
Declaration of Human Rights and the Core Principles
ofthe International Labour Organization.
It is Group policy to provide employment on an equal
basis irrespective of gender, sexual orientation, marital
or civil partner status, gender reassignment, race,
colour, nationality, ethnic or national origin, religion or
belief, disability or age. In particular, the Group gives
full consideration to applications for employment from
disabled persons. Where existing employees become
disabled, it is the Group’s policy wherever practicable
to provide continuing employment and to provide
training and career development and promotion to
disabledemployees.
Whistleblowing
The Group encourages staff to report any concerns
which they feel need to be brought to the attention of
management. Whistleblowing procedures, which are
published on the Group’s intranet site, are available to
staff who are concerned about possible impropriety,
financial or otherwise, and who may wish to ensure that
action is taken without fear of victimisation or reprisal.
Independent auditors
In accordance with section 489 of the Companies Act
2006, a resolution for the reappointment of Ernst &
Young LLP as Auditors of the Company will be proposed
at the forthcoming AGM.
Disclosure of information to the auditor
Each Director confirms that, so far as he/she is aware,
there is no relevant audit information of which the
Company’s auditor is unaware and that each of the
Directors has taken all the steps that he/she ought to
have taken as a Director to make himself/herself aware
of any relevant audit information and to establish that
the Company’s auditor is aware of that information.
This confirmation is given pursuant to section 418 of
the Companies Act 2006 and should be interpreted
inaccordance with and subject to that section.
Engagement with UK employees
In accordance with Section 172 of the Companies Act
2006 our statement on engagement with UK employees
is on page 48.
Engagement with suppliers, customers
andothers in a business relationship with
theCompany
In accordance with Section 172 of the Companies Act
2006 our statement on engagement with suppliers,
customers and others in a business relationship with
theCompany is on pages 96 to 98.
By order of the Board
Chris Lee
Group Legal Director & Company Secretary
13 March 2024
Savills plc
Registered in England No. 2122174
154
Annual report and accounts 2023
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT
OF THE FINANCIAL STATEMENTS
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable United Kingdom law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have elected to prepare the Group and parent
Company financial statements in accordance with UK-
adopted international accounting standards (‘IFRSs’).
Under company law the Directors must not approve the
financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of the Group and
parent Company and of the profit or loss of the Group and
parent Company for that period. In preparing the financial
statements, the Directors are required to:
select suitable accounting policies in accordance
withIAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply
them consistently;
make judgements and accounting estimates that are
reasonable and prudent;
present information, including accounting policies, in
a manner that provides relevant, reliable, comparable
and understandable information;
provide additional disclosures when compliance
with the specific requirements in IFRSs is insufficient
to enable users to understand the impact of
particular transactions, other events and conditions
on the Group and Company financial position and
financialperformance;
in respect of the Group and parent Company financial
statements, state whether UK-adopted international
accounting standards have been followed, subject to
any material departures disclosed and explained in
the financial statements; and
prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the Group and parent Company will continue
inbusiness.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Group and parent Company’s transactions
and disclose with reasonable accuracy at any time the
financial position of the Group and parent Company and
enable them to ensure that the financial statements and
the Directors’ Remuneration Report comply with the
Companies Act 2006.
The Directors are also responsible for safeguarding the
assets of the Group and parent Company and hence for
taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors
are also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Corporate Governance Statement that comply with that
law and those regulations.
The Directors are responsible for the maintenance
andintegrity of the corporate and financial information
included on the Company’s website. Legislation in
the United Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
The Directors consider that the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary
for Shareholders to assess the Group and parent
Company’s performance, business model and strategy.
Each of the Directors, whose names and functions
are listed in pages 86 to 88, confirm to the best of
theirknowledge:
that the consolidated financial statements, prepared
in accordance with UK-adopted international
accounting standards give a true and fair view of the
assets, liabilities, financial position and profit of the
parent Company and undertakings included in the
consolidation taken as a whole; and
that the Annual Report, including the Strategic
Report, includes a fair review of the development
and performance of the business and the position
of the Company and undertakings included in the
consolidation taken as a whole, together with a
description of the principal risks and uncertainties
that they face.
In the case of each Director in office at the date the
Directors’ Report is approved:
so far as the Director is aware, there is no relevant
audit information of which the Group and parent
Company’s auditor is unaware; and
they have taken all the steps that they ought to have
taken as a Director in order to make themselves
aware of any relevant audit information and to
establish that the Group and parent Company’s
auditor is aware of that information.
On behalf of the Board
Mark Ridley
Group Chief Executive
Chris Lee
Group Legal Director & Company Secretary
Forward-looking statements
Forward-looking statements have been made by the
Directors in good faith using information up until the
date on which they approved the Annual Report and
Accounts. Forward-looking statements should be
regarded with caution due to uncertainties in economic
trends and business risks.
13 March 2024
155
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
to the members of Savills plc
Opinion
In our opinion:
Savills plc’s group financial statements and parent company financial statements (the “financial statements”)
givea true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2023
and of the group’s profit for the year then ended;
the group financial statements have been properly prepared in accordance with UK adopted international
accounting standards;
the parent company financial statements have been properly prepared in accordance with UK adopted
international accounting standards as applied in accordance with section 408 of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Savills plc (the ‘parent company’) and its subsidiaries (the ‘group’)
forthe year ended 31 December 2023 which comprise:
Group Parent company
Consolidated statement of financial position as at
31December 2023 Statement of financial position as at 31 December 2023
Consolidated income statement for the year then ended Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for
theyear then ended Statement of cash flows for the year then ended
Consolidated statement of changes in equity for the
yearthen ended
Related notes 1 to 35 to the financial statements
includinga summary of significant accounting policies
Consolidated statement of cash flows for the year
thenended
Related notes 1 to 35 to the financial statements,
includinga summary of significant accounting policies
The financial reporting framework that has been applied in their preparation is applicable law and UK adopted
international accounting standards and as regards the parent company financial statements, as applied in
accordance with section 408 of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent
company and we remain independent of the group and the parent company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment
of the group and parent company’s ability to continue to adopt the going concern basis of accounting included
the following:
We obtained Management’s going concern assessment and understood the process undertaken by Management
to evaluate the operational and economic impacts of the ongoing macro-economic uncertainty and other
downside scenarios on the group and to reflect these in the group’s forecasts.
We tested the clerical accuracy of the going concern cash flow models and evaluated the appropriateness of the
methods used to calculate the cashflow forecasts, this included Management’s considerations related to forecast
cash flows for climate change impacts, concluding these not be material in the going concern period.
156
Annual report and accounts 2023
We assessed the appropriateness of the forecasts used in the going concern model by comparing these to
thelatest Board approved forecast.
We obtained the cash forecast and covenant calculation for the going concern period which covers 18 months
from the balance sheet date to 30 June 2025. We have tested the assumptions that are most sensitive in each
modelled scenario, being revenues, costs and underlying profits, and tested compliance with the covenants
which focus on adjusted EBITDA. In particular, we compared the main assumptions to historical trends,
includingthe performance of the business through the 2008-2010 Global Financial Crisis and 2020-2022
COVID-19 pandemic.
We challenged the appropriateness of each of the key assumptions through agreeing them to supporting
evidence and searching for contradictory evidence, using our understanding of the group’s business, evidence
gained during the audit and our industry knowledge, including principal and emerging risks that could impact
the group.
We assessed Management’s stress test on both covenant compliance and liquidity where a severe global
economic downturn analogous to that experienced during the Global Financial Crisis in 2008-2010 was
modelled. We performed our own reverse stress test applying further sensitivities to Management’s stress
scenario to identify the point at which the covenants would be breached.
We agreed the cash balances to third party confirmations and key terms in the financing arrangements such
asavailable facility, loan maturity dates and covenants to the underlying agreements.
We read the Board minutes to identify any matters that may impact the going concern assessment.
We read the going concern disclosures included in the Annual Report in order to assess whether they are
appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group and parent company’s ability
tocontinue as a going concern for a period to 30 June 2025.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial
statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report. However, because not all future events or conditions can be predicted, this
statement is not a guarantee as to the group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope
We performed an audit of the complete financial
information of eight components and audit procedures
on specific balances for a further five components.
The components where we performed full or specific
audit procedures accounted for 92% of absolute profit
before tax*, 92% of revenue and 90% of total assets.
* absolute profit before tax is calculated as the amalgamation of the absolute
values of profits and losses across for each component in the group after
removing intercompany transactions.
Key audit matters
Revenue recognition, specifically;
– The risk of fraud in revenue recognition in relationto
cut-off in the transactional advisory business; and
– The risk of management override of controls in
relation to revenue recognition.
Goodwill impairment
Materiality
Overall group materiality of £4.1m which represents 5%
of profit before tax adjusted for non-recurring items.
157
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
to the members of Savills plc
An overview of the scope of the parent company and group audits
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our
audit scope for each company within the group. Taken together, this enables us to form an opinion on the consolidated
financial statements. We take into account size, risk profile, the organisation of the group and effectiveness of group-
wide controls, changes in the business environment, the potential impact of climate change and other factors such as
recent internal audit results when assessing the level of work to be performed at each company.
In assessing the risk of material misstatement to the group financial statements, and to ensure we had adequate
quantitative coverage of significant accounts in the financial statements, we selected 13 components as full or
specific scope, which represent the principal business units within the group.
Of the 13 components selected, we performed an audit of the complete financial information of eight components
(“full scope components”) which were selected based on their size or risk characteristics. For the remaining five
components (“specific scope components”), we performed audit procedures on specific accounts within that
component that we considered had the potential for the greatest impact on the significant accounts in the financial
statements either because of the size of these accounts or their risk profile.
The reporting components where we performed audit procedures accounted for 92% (2022: 84%) of the group’s
absolute profit before tax, 92% (2022: 92%) of the group’s revenue and 90% (2022: 90%) of the group’s total assets.
For the current year, the full scope components contributed 80% (2022: 74%) of the group’s absolute profit before
tax, 82% (2022: 83%) of the group’s revenue and 82% (2022: 81%) of the group’s total assets. The specific scope
components contributed 12% (2022: 10%) of the group’s absolute profit before tax, 10% (2022: 10%) of the group’s
revenue and 8% (2022: 8%) of the group’s total assets. The audit scope of these components may not have included
testing of all significant accounts of the component but will have contributed to the coverage of significant accounts
tested for the group. A further 6% of the group’s absolute profit before tax, 7% of the group’s revenue and 7% of the
group’s total assets were the subject of specified audit procedures, including obtaining additional cash confirmations.
Of the remaining components that together represent 2% of the group’s absolute profit before tax, none are
individually greater than 1% of the group’s absolute profit before tax. For these components, we performed
other procedures, including analytical review, testing of consolidation journals, intercompany eliminations and
foreign currency translation recalculations to respond to any potential risks of material misstatement to the group
financialstatements.
Involvement with component teams
In establishing our overall approach to the group audit, we determined the type of work that needed to be
undertaken at each of the components by us, as the primary audit engagement team, or by component auditors
from other EY global network firms operating under our instruction. Of the eight full scope components, audit
procedures were performed on one of these directly by the group audit team. The audit procedures performed on
the other seven full scope components and the five specific scope components were performed by component
audit teams. Where the work was performed by component auditors, we determined the appropriate level of
involvement to enable us to determine that sufficient audit evidence had been obtained as a basis for our opinion
onthe group as a whole.
The group audit team continued to follow a programme of planned visits that has been designed to ensure that
the Senior Statutory Auditor visits key locations. During the current year’s audit cycle, visits were undertaken by
the primary audit team to six component teams in the group (Germany, Spain, Ireland, Hong Kong, Singapore,
USA), whereas for all other locations, outside of the UK (five components), our visits were performed virtually.
We supplemented these visits with further interactions with the component teams through the use of video or
teleconferencing facilities, including virtual meetings with local Management. We held virtual planning meetings
before the year end and weekly video conference calls were held with each of our component teams from the
beginning of February through to the full-year results announcement in March 2024. The review of relevant audit
workpapers was facilitated by the EY electronic audit platform and screen sharing of work. This allowed appropriate
discussions with the component teams on audit strategy, risk identification and the results of audit procedures
performed. The primary team interacted regularly with the component teams where appropriate during various
stages of the audit, reviewed relevant working papers and were responsible for the scope and direction of the audit
process. This, together with the additional procedures performed at group level, gave us appropriate evidence for
our opinion on the group financial statements.
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Annual report and accounts 2023
Climate change
Stakeholders are increasingly interested in how climate change will impact Savills. The group has determined that
the most significant future impacts from climate change on their operations will be from shifts in client preferences
for real estate services incorporating climate considerations and the substitution of existing products or services
with lower emissions options. These are explained on pages 74 to 80 in the required Task Force On Climate Related
Financial Disclosures and on pages 30 to 36 in the principal risks and uncertainties.
Climate commitments are explained on page 41. All of these disclosures form part of the “Other information,” rather
than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of
considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the group’s business
and any consequential material impact on its financial statements.
The group has explained in note 2.1 how they have reflected the impact of climate change in their financial statements,
including how this aligns with their commitment to achieve net zero emissions by 2030. There are no significant
judgements or estimates relating to climate change in the notes to the financial statements as the group own few
properties and therefore have limited exposure in terms of changes in environmental requirements. The group have
also assessed that transition costs to a low carbon economy will be outweighed by alternative business opportunities.
Our audit effort in considering climate change was focused on the adequacy of the group’s disclosures in the
financial statements and their conclusion that no issues were identified that would materially impact the carrying
values of intangible assets or have any other material impact on the financial statements. We also challenged
the directors’ considerations of climate change in their assessment of going concern and viability and associated
disclosures. As part of this evaluation, we performed our own risk assessment, supported by our climate change
internal specialists, to determine the risks of material misstatement in the financial statements from climate change
which needed to be considered in our audit.
We also challenged the directors’ considerations of climate change risks in their assessment of going concern and
viability and associated disclosures. Where considerations of climate change were relevant to our assessment of
going concern, these are described above.
Based on our work we have not identified the impact of climate change on the financial statements to be a key audit
matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on:
the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion
thereon, and we do not provide a separate opinion on these matters.
159
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
to the members of Savills plc
Risk Our response to the risk
Key observations communicated
to the AuditCommittee
Revenue Recognition
Revenue for the year ended
31December 2023 is £2,238.0m
(2022: £2,298.3m).
There is a risk of fraud in
revenue recognition in relation
to cut-off in the transactional
advisory business. Transactional
advisory revenue for the year
ended 31 December 2023 is
£772.9m (2022: £930.1m).
Considering the relatively high
proportion of the transactional
revenue recognised close
to the year end, the risk of
misstatement may occur
through recognition in the
incorrect period, whether due to
management override, or error,
due to conditions attached
to the transactional advisory
revenue. We have identified
thisas a significant risk.
There is also a risk that revenue
may be misstated through
management override by
incorrectly recognising revenue
in order to increase profits
to meet bonus targets, or to
smooth financial results.
Refer to the Audit Committee
Report (page 124); Accounting
policies (page 181); and Note 5
of the Consolidated Financial
Statements (page 194).
We obtained an understanding of the group’s revenue
process and identified key controls but did not test or
rely on controls.
For a sample of transactional advisory revenue
transactions recognised close to the year end (both pre
and post year end), we obtained the underlying contract
with the customer. We read the contracts to identify
the performance obligations. For most transactions,
we determined that it was appropriate to recognise
revenue on unconditional exchange of contracts (lease
agreements or sale agreements). Where there were
performance obligations existing after exchange of
contracts and these were not satisfied at the year-end,
but cash was received, we checked that revenue was
appropriately deferred by confirming that a liability
wasrecorded in the Statement of Financial Position.
For the same sample, we agreed the revenue to cash
receipts, checking that a receivable or accrued income
was recognised where cash was not received prior to
the year end.
On a sample basis, we obtained credit notes issued in
January to determine if they related to revenue that had
been recognised in December. Where this was the case,
we gained an understanding of why the credit note
was issued and obtained reissued invoices to prove that
revenue was not overstated in 2023.
We tested all material consolidation adjustments, topside
adjustments and manual journal entries impacting
revenue by obtaining supporting documentation to
corroborate the amounts recorded inthe current period.
We performed full and specific scope audit procedures
over the cut-off risk in transactional advisory revenue
and the risk of management override of controls in 8
components, which covered 92% of revenue.
We did not identify any
material cut off issues
relating to transactional
advisory revenue
or any instances of
management override
relating to revenue
recognition in the year.
Goodwill impairment
At 31 December 2023 the
carrying value of goodwill is
£443.6m (2022: £449.4m).
The impairment charge
recognised during the year
is £3.9m (2022: nil).
Goodwill is tested
annually for impairment at
theCash Generating Unit
(CGU) level. The recoverable
amount of each CGU is
determined through a value
inuse calculation.
We understood the methodology applied in
Management’s impairment reviews for each of the
material CGUs and identified the controls over the
process but did not test or rely on controls.
For all material CGUs, we performed the
followingprocedures:
We validated the carrying amounts of the net assets
subject to impairment testing to the underlying
accounting records, checking consistency between
the assets and liabilities included in the carrying
value and the related cashflows.
We tested the integrity and mathematical accuracy
of the value in use models prepared by Management
to support the recoverable values, and that the
models are appropriate for this purpose.
Based on our
procedures, we
conclude that the
recoverable value of
the goodwill is less than
the carrying value for
the Indonesian CGU
and that Management’s
impairment of £3.9m
isappropriate.
160
Annual report and accounts 2023
Risk Our response to the risk
Key observations communicated
to the AuditCommittee
Goodwill impairment
continued
The value in use calculation
is based on Management’s
estimate of the future cash
flows of each underlying CGUs
and is most sensitive to the
assumptions around revenue
growth rates, operating profit
margin and discount rate.
Refer to the Audit Committee
Report (page 124); Accounting
policies (page 176); and Note 15
of the Consolidated Financial
Statements (page 210).
We agreed forecast cash flows to Board approved
budgets and strategic plans.
We have performed sensitivity analysis over key
assumptions to understand the impact of reasonably
possible changes in assumptions on the impairment
models and conclusions.
We identified the CGUs presenting a higher risk of
impairment based on the materiality of the allocated
goodwill, historical and actual trading performance,
the level of headroom estimated by Management and
its sensitivity to changes in key assumptions. For these
CGUs, we performed additional audit procedures,
inparticular:
We tested the key assumptions supporting
Management’s forecasted cash flows for each CGU,
including revenue growth, operating profit margin and
discount rate. We compared Management’s forecasts
to relevant economic and property industry forecasts
and to the historical performance of the CGUs. We
also engaged our internal valuation specialists to
assist with the evaluation of the discount rates applied
in Management’s value in use models.
We performed our own sensitivity analysis
to understand the impact of changes to key
assumptions, in particular revenue growth, operating
profit margin and discount rate, on the value in use
assessment and stress tested the assessment to
conclude on possible impairment.
For CGUs where the recoverability of the goodwill
was sensitive to reasonably possible changes in
key assumptions, we verified that appropriate
disclosures have been included in the group’s
financialstatements.
Our work on the carrying value of goodwill was performed
by the group audit team with assistance from a number
of component teams. Our procedures covered 99% of the
goodwill carrying value at the balance sheet date.
The recoverable
value of all other
CGUs exceeds their
carrying value and we
conclude that there is
no impairment of these
assets in the year.
The disclosures
prepared by
Management comply
with IAS 36 and
appropriately reflect
the CGUs where a
reasonable change
in assumption
could result in an
impairmentcharge.
Management have
appropriately
highlighted that a
reasonably possible
change in certain
key assumptions in
particular revenue
and operating profit
margin forecasts
could lead to material
impairment charges in
the US and Australia.
Changes to revenue
forecasts in Indonesia
could lead toadditional
impairment charges.
We concluded
appropriate disclosures
had been included in the
financial statements for
the above assumptions.
In the prior year, our auditor’s report included a key audit matter in relation to provision for professional indemnity
litigation and claims. This is no longer considered to be a key audit matter due to the reduction in the number of
claims as well as a significant reduction in the group’s provision for these claims, after considering any receivables
from insurers.
161
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
to the members of Savills plc
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected
to influence the economic decisions of the users of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the group to be £4.1 million (2022: £8.2 million), which is 5% (2022: 5%) of profit
before tax adjusted for non-recurring items. We believe that profit before tax adjusted for non-recurring items
provides us with the most relevant performance measure to the stakeholders of the entity and therefore have
determined materiality based on this number.
We determined materiality for the Parent Company to be £11.4 million (2022: £11.6 million), which is 3% (2022: 3%)
oftotal assets.
Starting basis IFRS profit before tax: £55.4 million
Adjustment for
non-recurring items
Add back:
Material acquisition costs £10.1 million
Restructuring costs £13.9 million
Impairment charge £3.9 million
Less:
Fair value gain on call option £1.4 million
Profit on disposal of joint ventures £0.4 million
Materiality IFRS profit before tax adjusted for non-recurring items of £81.5 million
Materiality of £4.1 million (5% of materiality basis)
During the course of our audit, we reassessed materiality which resulted in a small increase from our initial
materiality of £3.9m to the final materiality of £4.1m. We have audited using the lower materiality of £3.9m.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to
an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceedsmateriality.
On the basis of our risk assessments, together with our assessment of the group’s overall control environment,
our judgement was that performance materiality was 50% (2022: 50%) of our planning materiality, namely £2.0m
(2022:£4.1m). We have set performance materiality at this percentage due to the risk of material misstatements
occurring within the financial statements, including our understanding of the control environment and history of
past errors identified.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement
accounts is undertaken based on a percentage of total performance materiality. The performance materiality set
for each component is based on the relative scale and risk of the component to the group as a whole and our
assessment of the risk of misstatement at that component. In the current year, the range of performance materiality
allocated to components was £0.4m to £1.4m (2022: £0.8m to £3.5m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of
£0.2m (2022: £0.4m), which is set at 5% of planning materiality, as well as differences below that threshold that, in
our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed
aboveand in light of other relevant qualitative considerations in forming our opinion.
162
Annual report and accounts 2023
Other information
The other information comprises the information included in the annual report including Strategic Report, Governance,
Shareholder information and the Appendices set out on pages 265 and 266, other than the financial statements and
our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit,
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatementof the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in
the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are
not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the group and company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained
during the audit:
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 151;
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 151;
Director’s statement on whether it has a reasonable expectation that the group will be able to continue in
operation and meets its liabilities set out on page 151;
Directors’ statement on fair, balanced and understandable set out on page 155;
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
page 32;
The section of the annual report that describes the review of effectiveness of risk management and internal
control systems set out on page 126; and
The section describing the work of the audit committee set out on pages 118 to 126.
163
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT continued
to the members of Savills plc
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 155, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the group or the parent company
orto cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Theextent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the company and Management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and
determined that the most significant are those relevant to the reporting framework (UK adopted international
accounting standards, the Companies Act 2006 and UK Corporate Governance Code) and the relevant
international tax laws and regulations. In addition, we concluded that there are certain significant laws and
regulations which may have an effect on the determination of the amounts and disclosures in the financial
statements being the Listing Rules of the UK Listing Authority, UK financial services legislation, those laws and
regulations relating to employee matters and pensions legislation, and data protection requirements in the
jurisdictions in which the group operates.
We understood how Savills plc is complying with those frameworks through enquiry with Management, internal
audit, those responsible for legal and compliance procedures and the company secretary. We corroborated our
enquiries through our review of Board minutes and papers provided to the Board and the Audit Committee,
including internal audit reports, and our attendance at the meetings of the Audit Committee, as well as
consideration of the results of our audit procedures across the group.
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud
might occur by meeting with Management from various parts of the business to understand where it considered
there was susceptibility to fraud. We also considered performance targets impacting bonus arrangements, and
the risk of management override of controls. We engaged our forensics specialists in assisting our assessment
of the susceptibility of the group’s financial statements to fraud and designed specific responses to the risk
which were carried out by our full and specific scope locations. We considered the programmes and controls
that the group has established to prevent, deter and detect fraud, and how senior Management monitors those
programmes and controls. The risk in revenue for cut off in the transactional advisory business and management
override of controls in all revenue streams was considered to be higher and we performed audit procedures to
address these fraud risks. These procedures were designed to provide reasonable assurance that the financial
statements were free from material fraud or error.
164
Annual report and accounts 2023
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and
regulations. Our procedures involved:
– Enquiry of group Management, divisional Management, internal audit, those charged with governance and
legal counsel regarding their knowledge and any non-compliance or potential non-compliance with laws and
regulations of fraud that could affect the financial statements;
– Reading minutes of meetings of those charged with governance;
– Assessment of matters reported to the Audit Committee and the results of Management’s investigation
ofsuch matters, involving the use of specialists where necessary; and
– Journal entry testing, with a focus on manual revenue journals and journals indicating large or unusual
transactions close to the year end based on our understanding of the business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters we are required to address
Following the recommendation from the audit committee, we were appointed by the company on 19 May 2021
toaudit the financial statements for the year ending 31 December 2021 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments is 3 years,
covering the years ending 2021 to 2023.
The audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Christabel Cowling (Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
13 March 2024
165
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
| 2023 | 2022 | ||
| Notes | £m | £m | |
Revenue | 5 and 6 | ||
Employee benefits expense | 9.1 | ( | ( |
Depreciation | 16 and 17 | ( | ( |
Amortisation of intangible assets | 15 | ( | ( |
Impairment of goodwill | 15 | ( | |
Other operating expenses | 7.1 | ( | ( |
(Increase)/decrease in provision for expected credit loss | ( | ||
Other net gains | 7.1 | ||
Share of post-tax profit from joint ventures and associates | 18.1 | ||
Operating profit | 7.1 | ||
Finance income | 11 | ||
Finance costs | 11 | ( | ( |
Net finance income/(cost) | 11 | ( | |
Profit before income tax | |||
Income tax expense | 12 | ( | ( |
Profit for the year | |||
| Attributable to: | |||
Owners of the parent | |||
Non-controlling interests | ( | ||
| Earnings per share | |||
Basic earnings per share | 14.1 | ||
Diluted earnings per share | 14.1 | ||
| Supplementary income statement information | |||
| Reconciliation to underlying profit before income tax | |||
Profit before income tax | |||
– restructuring and transaction-related costs | 8 | ||
– other underlying adjustments | 8 | ( | |
Underlying profit before income tax | 6 and 8 |
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2023
166
Annual report and accounts 2023
| 2023 | 2022 | ||
| Notes | £m | £m | |
Profit for the year | |||
| Other comprehensive (loss)/income | |||
| Items that will not be reclassified to profit or loss: | |||
| Remeasurement of defined benefit pension scheme and employee | |||
benefitobligations | ( | ||
Changes in fair value of financial assets held at FVOCI | ( | ||
Tax on other items that will not be reclassified | 12 | ( | |
Total items that will not be reclassified to profit or loss | ( | ( | |
| Items that may be reclassified subsequently to profit or loss: | |||
Currency translation differences | ( | ||
Total items that may be reclassified subsequently to profit or loss | ( | ||
Other comprehensive (loss)/income for the year | ( | ||
Total comprehensive (loss)/income for the year | ( | ||
| Total comprehensive (loss)/income attributable to: | |||
Owners of the parent | ( | ||
Non-controlling interests | ( | ||
( |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2023
167
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Group | Company | ||||
| 2022 | |||||
| 2023 | restated* | 2023 | 2022 | ||
| Notes | £m | £m | £m | £m | |
| Assets: Non-current assets | |||||
Property, plant and equipment | 16 | 2.9 | 3.4 | ||
Right-of-use assets | 17 | 41.8 | 40.0 | ||
Goodwill* | 15 | – | – | ||
Intangible assets | 15 | 1.3 | 1.8 | ||
Investments in subsidiaries | 18.4 | 182.4 | 176.4 | ||
Investments in joint ventures and associates | 18.1 | – | – | ||
Deferred income tax assets | 19 | 2.6 | 1.9 | ||
Financial assets at fair value through other comprehensive income (‘FVOCI’) | 18.2 | – | – | ||
Financial assets at fair value through profit and loss (‘FVPL’) | 18.3 | – | – | ||
Defined benefit pension surplus | 10.2 | – | 1.2 | ||
Contract related assets | 5.1 | – | – | ||
Trade and other receivables | 20.3 | 6.9 | 7.1 | ||
| Assets: Current assets | 237.9 | 231.8 | |||
Contract assets | 5.1 | – | – | ||
Trade and other receivables | 20.1 | 75.1 | 81.4 | ||
Income tax receivable | 0.7 | – | |||
Derivative financial instruments | – | – | |||
Cash and cash equivalents** | 21 | 118.9 | 93.6 | ||
| Liabilities: Current liabilities | 194.7 | 175.0 | |||
Borrowings | 24 | – | – | ||
Overdrafts in notional pooling arrangement** | 22 | – | – | ||
Lease liabilities | 25 | 6.0 | 5.2 | ||
Derivative financial instruments | – | – | |||
Contract liabilities | 5.1 | – | – | ||
Trade and other payables* | 23.1 | 14.6 | 14.9 | ||
Income tax liabilities | – | 2.4 | |||
Employee benefit obligations | 26.2 | 0.2 | 0.2 | ||
Provisions | 26.1 | – | – | ||
20.8 | 22.7 | ||||
Net current assets | 173.9 | 152.3 | |||
Total assets less current liabilities | 411.8 | 384.1 | |||
| Liabilities: Non-current liabilities | |||||
Borrowings | 24 | – | – | ||
Lease liabilities | 25 | 54.2 | 53.6 | ||
Derivative financial instruments | – | – | |||
Other payables | 23.2 | – | – | ||
Retirement and employee benefit obligations | 26.2, 10.2 | – | – | ||
Provisions | 26.1 | 2.5 | 2.4 | ||
Deferred income tax liabilities | 19 | – | – | ||
56.7 | 56.0 | ||||
Net assets | 355.1 | 328.1 | |||
| Equity: | |||||
Share capital | 27 | 3.6 | 3.6 | ||
Share premium | 27 | 104.9 | 104.9 | ||
Other reserves | 29 | 38.2 | 38.2 | ||
Retained earnings | 29 | 208.4 | 181.4 | ||
Equity attributable to owners of the parent | 355.1 | 328.1 | |||
Non-controlling interests | 18.5 | – | – | ||
Total equity | 355.1 | 328.1 |
* See Note 18.6 for details of prior period restatement.
** Included within cash and cash equivalents are cash balances of £1 93 . 3 m (31 December 2022: £2 05 . 0 m) that are operated within a notional cash pooling
arrangement together with overdraft balances of £19 2 . 3 m (31 December 2022: £20 2. 0 m) presented above in current liabilities. See Note 22 for further details.
The profit after income tax of the Company for the year was £66.1m (2022: £78.8m).
The consolidated and Company financial statements on pages 166 to 171 were authorised for issue by the Board of
Directors on 13 March 2024 and were signed on its behalf by:
J J M Ridley S J B Shaw
Savills plc
Registered in England No. 2122174
CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION
as at 31 December 2023
168
Annual report and accounts 2023
| Attributable to owners of the parent | ||||||||
| Non- | ||||||||
| Share | Share | Other | Retained | controlling | Total | |||
| capital | premium | reserves* | earnings** | Total | interests | equity | ||
| £m | £m | £m | £m | £m | £m | £m | ||
Balance at 1 January 2023 | ||||||||
Profit for the year | ( | |||||||
| Other comprehensive income/(loss): | ||||||||
| Remeasurement of defined benefit pension | ||||||||
scheme and employee benefit obligations | ( | ( | ( | ( | ||||
| Changes in fair value of financial assets | ||||||||
atFVOCI | ||||||||
Tax on items taken to other comprehensive income/(loss) | 12 | |||||||
Currency translation differences | ( | ( | ( | ( | ||||
Total comprehensive (loss)/income for the year | ( | ( | ( | ( | ||||
| Employee share option scheme: | ||||||||
– Value of services provided | 28 | |||||||
– Tax on employee share option schemes | 12 | |||||||
Tax on other items taken to reserves | 12 | ( | ( | ( | ||||
Purchase of treasury shares | ( | ( | ( | |||||
Dividends | 13 | ( | ( | ( | ( | |||
Transfer between reserves | ( | ( | ||||||
Fair value of derivative financial instrument | ( | ( | ( | |||||
Balance at 31 December 2023 |
| Attributable to owners of the parent | ||||||||
| Non- | ||||||||
| Share | Share | Other | Retained | controlling | Total | |||
| capital | premium | reserves* | earnings** | Total | interests | equity | ||
| £m | £m | £m | £m | £m | £m | £m | ||
Balance at 1 January 2022 | ||||||||
Profit for the year | ||||||||
| Other comprehensive income/(loss): | ||||||||
| Remeasurement of defined benefit pension | ||||||||
scheme and employee benefit obligations | ||||||||
| Changes in fair value of financial assets | ||||||||
atFVOCI | ( | ( | ( | |||||
Tax on items taken to other comprehensive income/(loss) | 12 | ( | ( | ( | ( | |||
Currency translation differences | ||||||||
Total comprehensive income for the year | ||||||||
| Employee share option scheme: | ||||||||
– Value of services provided | 28 | |||||||
– Tax on employee share option schemes | 12 | ( | ( | ( | ||||
Issue of share capital | ||||||||
Tax on other items taken to reserves | 12 | |||||||
Purchase of treasury shares | ( | ( | ( | |||||
Dividends | 13 | ( | ( | ( | ( | |||
Transfer between reserves | ( | ( | ||||||
Fair value of derivative financial instrument | 3.8 | ( | ( | ( | ||||
Transactions with non-controlling interests | ( | |||||||
Additions through business combinations | 18.6 | |||||||
Balance at 31 December 2022 |
* Included within other reserves on the face of the statement of financial position are the capital redemption reserve, merger relief reserve, foreign exchange reserve
and revaluation reserve as disclosed in Note 29.
** Included within retained earnings on the face of the statement of financial position are treasury shares, share-based payments reserve and the profit and loss
account as disclosed in Note 29.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2023
169
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Attributable to owners of the Company
Notes
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve*
£m
Merger
relief
reserve*
£m
Other
reserves*
£m
Share-
based
payments
reserve**
£m
Retained
earnings**
£m
Total
equity
£m
Balance at 1 January 2023 3.6 104.9 0.3 34.9 3.0 52.5 128.9 328.1
Profit for the year – – – – – – 66.1 66.1
Other comprehensive income/(loss):
Remeasurement of defined
benefit pension scheme 10.2 – – – – – – (1.3) (1.3)
Tax on items taken to other
comprehensive income – – – – – – 0.4 0.4
Total comprehensive income
forthe year – – – – – – 65.2 65.2
Employee share option scheme:
– Value of services provided 28 – – – – – 28.8 – 28.8
– Exercise of share options – – – – – (21.3) 3.6 (17.7)
– Tax on employee share
option schemes 12 – – – – – 0.2 – 0.2
– Exercise of share options:
taxon employee share
optionschemes – – – – – (0.1) – (0.1)
Transfer between reserves – – – 3.0 (3.0) – – –
Dividends 13 – – – – – – (49.4) (49.4)
Balance at 31 December 2023 3.6 104.9 0.3 37.9 – 60.1 148.3 355.1
Attributable to owners of the Company
Notes
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve*
£m
Merger
relief
reserve*
£m
Other
reserves*
£m
Share-
based
payments
reserve**
£m
Retained
earnings**
£m
Total
equity
£m
Balance at 1 January 2022 3.6 104.4 0.3 34.9 3.0 44.1 132.7 323.0
Profit for the year – – – – – – 78.8 78.8
Other comprehensive income/(loss):
Remeasurement of defined
benefit pension scheme 10.2 – – – – – – 0.2 0.2
Tax on items taken to other
comprehensive income – – – – – – (0.1) (0.1)
Total comprehensive income
forthe year – – – – – – 78.9 78.9
Employee share option scheme:
– Value of services provided 28 – – – – – 30.4 – 30.4
– Exercise of share options – – – – – (21.0) 3.4 (17.6)
– Tax on employee share
optionschemes 12 – – – – – (0.6) – (0.6)
– Exercise of share options:
tax on employee share
optionschemes – – – – – (0.4) 0.4 –
Issue of share capital – 0.5 – – – – – 0.5
Dividends 13 – – – – – – (86.5) (86.5)
Balance at 31 December 2022 3.6 104.9 0.3 34.9 3.0 52.5 128.9 328.1
* Included within other reserves on the face of the statement of financial position are the capital redemption reserve, the merger relief reserve and other reserves
asdisclosed above.
** Included within retained earnings on the face of the statement of financial position are share-based payments reserve and retained earnings as disclosed above.
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2023
170
Annual report and accounts 2023
Group | Company | ||||
| 2023 | 2022 | 2023 | 2022 | ||
| Notes | £m | £m | £m | £m | |
| Cash flows from operating activities | |||||
Cash generated from/(used in) operations | 31 | (22.0) | (6.8) | ||
Interest received | 6.8 | 2.0 | |||
Interest paid | ( | ( | (2.1) | (2.1) | |
Income tax (paid)/received | ( | ( | (0.7) | 4.6 | |
Net cash generated from/(used in) operating activities | (18.0) | (2.3) | |||
| Cash flows from investing activities | |||||
Proceeds from sale of property, plant and equipment | 0.2 | – | |||
Proceeds from sale of financial assets held at FVOCI and FVPL | – | – | |||
Proceeds from sale of interests in joint ventures | – | – | |||
Dividends received from joint ventures | 18.1 | – | – | ||
Dividends received from associates | 18.1 | – | – | ||
Dividends received from subsidiary | 75.0 | 79.0 | |||
Dividends received from other parties | – | – | |||
Repayment of loans by joint ventures | – | – | |||
Repayment of loans by associates | – | – | |||
Repayment of loans by subsidiaries | 226.3 | 40.7 | |||
Repayment of loans by other parties | – | – | |||
Loans to joint ventures | ( | – | – | ||
Loans to associates | ( | – | – | ||
Loans to subsidiaries | (204.0) | (25.0) | |||
Loans to other parties | ( | ( | – | – | |
Acquisition of subsidiaries, net of cash and overdrafts acquired | 18.6 | ( | ( | – | – |
Deferred consideration paid in relation to prior year acquisitions | 23.3 | ( | ( | – | – |
Sublease income | 0.2 | – | |||
Purchase of property, plant and equipment | 16 | ( | ( | (1.1) | (1.5) |
Purchase of intangible assets | 15 | ( | ( | – | – |
Purchase of financial assets held at FVOCI and FVPL | ( | ( | – | – | |
Purchase of investment in joint ventures | 18.1 | ( | ( | – | – |
Investment in Employee Benefit Trust | 18.4 | (23.6) | (37. 3) | ||
| Return of capital investment from subsidiaries in relation | |||||
toEmployeeBenefit Trust funding | 25.8 | 29.5 | |||
Net cash (used in)/generated from investing activities | ( | ( | 98.8 | 85.4 | |
| Cash flows from financing activities | |||||
Proceeds from issue of share capital | – | 0.5 | |||
Proceeds from transaction with non-controlling interest | – | – | |||
Transaction costs incurred on transaction with non-controlling interest | ( | – | – | ||
Proceeds from borrowings | 24 | – | – | ||
Repayments of borrowings | 24 | ( | ( | – | – |
Financing fees paid | 32 | ( | – | – | |
Principal elements of lease payments | 32 | ( | ( | (6.1) | (5.7) |
Purchase of treasury shares | ( | ( | – | – | |
Dividends paid | 13 | ( | ( | (49.4) | (86.5) |
Net cash used in financing activities | ( | ( | (55.5) | (91.7) | |
Net (decrease)/increase in cash, cash equivalents and bank overdrafts | ( | ( | 25.3 | (8.6) | |
Cash, cash equivalents and bank overdrafts at beginning of year | 93.6 | 102.2 | |||
Effect of exchange rate fluctuations on cash and cash equivalents held | ( | – | – | ||
Cash, cash equivalents and bank overdrafts at end of year | 22 | 118.9 | 93.6 |
CONSOLIDATED AND COMPANY STATEMENTS OF CASH FLOWS
for the year ended 31 December 2023
171
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise stated, and are also
applicable to the parent Company.
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023
172
Annual report and accounts 2023
173
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
2.3 Use of non-GAAP measures continued
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
174
Annual report and accounts 2023
175
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
2.6 Foreign currency translation continued
Freehold property | 50 years |
Short leasehold property (less than 50 years) | Lower of estimated useful life and unexpired term of lease |
Equipment and motor vehicles | 3–10 years |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
176
Annual report and accounts 2023
Customer relationships | 3–15 years |
Order backlogs | 2–4 years |
Contracts – investment, property management and other existing business contracts | 2–20 years |
Brands | 10 years |
Computer software | 3–7 years |
177
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
178
Annual report and accounts 2023
179
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
180
Annual report and accounts 2023
181
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
2.25 Revenue continued
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
182
Annual report and accounts 2023
183
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
2. Accounting policies continued
3. Financial risk management
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks. The Group has in place a risk management programme
that seeks to limit the adverse effects on the financial performance of the Group. The Group and the Company use
financial instruments to manage material foreign currency risk.
The treasury function is responsible for implementing risk management policies applied by the Group and the
Company. The treasury function has a policy and procedures manual that sets out specific guidelines on financial risks
and the use of financial instruments to manage these.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
184
Annual report and accounts 2023
| Movement of currency against sterling | ||||
| £m | -10.0% | -5.0% | +5.0% | +10.0% |
| 2023 | ||||
| Estimated impact on post-tax profit | ||||
Euro | 0.6 | 0.3 | (0.4) | (0.7) |
Hong Kong dollar | (0.3) | (0.2) | 0.2 | 0.4 |
US dollar | 0.8 | 0.4 | (0.5) | (1.0) |
Chinese renminbi | (0.5) | (0.3) | 0.3 | 0.6 |
| Estimated impact on components of equity | ||||
Euro | 0.9 | 0.5 | (0.5) | (1.1) |
Hong Kong dollar | (7.8) | (4.1) | 4.5 | 9.6 |
US dollar | (17. 3) | (9.1) | 10.0 | 21.1 |
Chinese renminbi | (4.4) | (2.3) | 2.5 | 5.4 |
| 2022 | ||||
| Estimated impact on post-tax profit | ||||
Euro | (1.4) | (0.7) | 0.8 | 1.7 |
Hong Kong dollar | (0.8) | (0.4) | 0.4 | 0.9 |
US dollar | (0.8) | (0.4) | 0.4 | 0.9 |
Chinese renminbi | (0.6) | (0.3) | 0.3 | 0.7 |
| Estimated impact on components of equity | ||||
Euro | (0.9) | (0.5) | 0.5 | 1.2 |
Hong Kong dollar | (8.8) | (4. 6) | 5.1 | 10.7 |
US dollar | (18.7) | (9.8) | 10.8 | 22.9 |
Chinese renminbi | (4.8) | (2.5) | 2.8 | 5.9 |
185
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
3. Financial risk management continued
| Increase in interest rates | ||||
| £m | +0.5% | +1.0% | +1.5% | +2.0% |
| 2023 | ||||
Estimated impact on post-tax profit and equity | 1.1 | 2.1 | 3.2 | 4.2 |
| 2022 | ||||
Estimated impact on post-tax profit and equity | 1.0 | 2.6 | 4.3 | 5.9 |
| Decrease in interest rates | ||||
| £m | -0.5% | -1.0% | -1.5% | -2.0% |
| 2023 | ||||
Estimated impact on post-tax profit and equity | (1.1) | (2.1) | (3.2) | (4.2) |
| 2022 | ||||
Estimated impact on post-tax profit and equity | (2.3) | (3.7) | (3.7) | (3.6) |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
186
Annual report and accounts 2023
| 2023 | 2022 | |
| Counterparty rating (provided by S&P) | £m | £m |
AAAm | – | 1.0 |
AA- | 37.2 | 36.2 |
A+ | 152.2 | 148.9 |
A | 45.1 | 195.1 |
A- | 29.3 | 31.9 |
BBB+ | 13.7 | 18.2 |
BBB or below | 32.8 | 33.0 |
Total | 310.3 | 464.3 |
187
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
3. Financial risk management continued
3.5 Liquidity risk continued
Group continued
| Total | ||||||
| contractual | ||||||
| Less than | Between | Between | Over | undiscounted | Carrying | |
| £m | a year | 1 and 2 years | 2 and 5 years | 5 years | cash flows | values |
| 2023 | ||||||
Borrowings | 12.6 | 34.4 | 70.3 | 62.7 | 180.0 | 157. 2 |
Overdrafts in notional pooling arrangement | 192.3 | – | – | – | 192.3 | 192.3 |
Lease liabilities | 61.2 | 65.0 | 111.1 | 58.5 | 295.8 | 254.2 |
Derivative financial instruments | 2.5 | – | 3.2 | – | 5.7 | 5.7 |
Trade and other payables | 613.2 | 5.3 | 5.7 | 1.0 | 625.2 | 623.6 |
881.8 | 104.7 | 190.3 | 122.2 | 1,299.0 | 1,233.0 | |
| 2022 restated* | ||||||
Borrowings | 15.3 | 4.6 | 41.5 | 125.6 | 187.0 | 159.7 |
Overdrafts in notional pooling arrangement | 202.0 | – | – | – | 202.0 | 202.0 |
Lease liabilities | 61.4 | 77.9 | 110.6 | 70.7 | 320.6 | 277.6 |
Derivative financial instruments | 1.0 | 3.9 | 2.8 | – | 7.7 | 7.7 |
Trade and other payables | 676.8 | 19.4 | 3.4 | 0.1 | 699.7 | 698.7 |
956.5 | 105.8 | 158.3 | 196.4 | 1,417.1 | 1,345.7 |
| Total | ||||||
| contractual | ||||||
| Less than | Between | Between | Over | undiscounted | Carrying | |
| £m | a year | 1 and 2 years | 2 and 5 years | 5 years | cash flows | values |
| 2023 | ||||||
Lease liabilities | 7.9 | 7.9 | 23.8 | 29.7 | 69.3 | 60.2 |
Trade and other payables | 13.3 | – | – | – | 13.3 | 13.3 |
21.2 | 7.9 | 23.8 | 29.7 | 82.6 | 73.5 | |
| 2022 | ||||||
Lease liabilities | 7.1 | 7.1 | 21.2 | 33.5 | 68.9 | 58.8 |
Trade and other payables | 13.7 | – | – | – | 13.7 | 13.7 |
20.8 | 7.1 | 21.2 | 33.5 | 82.6 | 72.5 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
188
Annual report and accounts 2023
Group | Company | |||
2023 | 2022 | 2023 | 2022 | |
Equity | 752.8 | 805.3 | 355.1 | 328.1 |
Cash and cash equivalents | 506.8 | 669.1 | 118.9 | 93.6 |
Overdrafts in notional pooling arrangement | (192.3) | (202.0) | – | – |
Bank overdrafts | (4.2) | (2.8) | – | – |
Borrowings (gross of transaction costs) | (153.8) | (158.3) | – | – |
Cash and cash equivalents net of gross borrowings | 156.5 | 306.0 | 118.9 | 93.6 |
189
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
3. Financial risk management continued
| Financial | Financial | |||||||
| Financial | Financial | assets at | Total | Financial | Financial | assets at | Total | |
| assets at | assets at | amortised | carrying | assets at | assets at | amortised | carrying | |
| Group | FVPL | FVOCI | cost | amount | FVPL | FVOCI | cost | amount |
| £m | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 |
| Financial assets: | ||||||||
Financial assets at FVOCI | – | 5.0 | – | 5.0 | – | 5.7 | – | 5.7 |
Financial assets at FVPL | 38.5 | – | – | 38.5 | 36.8 | – | – | 36.8 |
Trade and other receivables | – | – | 606.2 | 606.2 | – | – | 549.5 | 549.5 |
Derivative financial instruments | 1.0 | – | – | 1.0 | 0.3 | – | – | 0.3 |
Cash and cash equivalents | – | – | 506.8 | 506.8 | – | – | 669.1 | 669.1 |
Total financial assets | 39.5 | 5.0 | 1,113.0 | 1,157. 5 | 37.1 | 5.7 | 1,218.6 | 1,261.4 |
| Financial | Financial | |||||
| Financial | liabilities at | Total | Financial | liabilities at | Total | |
| liabilities | amortised | carrying | liabilities | amortised | carrying | |
| Group | at FVPL | cost | amount | at FVPL | cost | amount |
| £m | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 |
| Financial liabilities: | ||||||
Borrowings | – | 157.2 | 157. 2 | – | 159.7 | 159.7 |
Overdrafts in notional pooling arrangements | – | 192.3 | 192.3 | – | 202.0 | 202.0 |
Lease liabilities | – | 254.2 | 254.2 | – | 277.6 | 277.6 |
Trade and other payables | – | 623.6 | 623.6 | – | 698.5 | 698.5 |
Derivative financial instruments | 5.7 | – | 5.7 | 7.7 | – | 7.7 |
Total financial liabilities | 5.7 | 1, 227.3 | 1,233.0 | 7.7 | 1,337. 8 | 1,345.5 |
| Financial | Financial | |||
| assets at | Total | assets at | Total | |
| amortised | carrying | amortised | carrying | |
| Company | cost | amount | cost | amount |
| £m | 2023 | 2023 | 2022 | 2022 |
| Financial assets: | ||||
Trade and other receivables | 75.0 | 75.0 | 84.8 | 84.8 |
Cash and cash equivalents | 118.9 | 118.9 | 93.6 | 93.6 |
Total financial assets | 193.9 | 193.9 | 178.4 | 178.4 |
| Financial | Financial | |||
| liabilities at | Total | liabilities at | Total | |
| amortised | carrying | amortised | carrying | |
| Company | cost | amount | cost | amount |
| £m | 2023 | 2023 | 2022 | 2022 |
| Financial liabilities: | ||||
Lease liabilities | 60.2 | 60.2 | 58.8 | 58.8 |
Trade and other payables | 13.1 | 13.1 | 13.7 | 13.7 |
Total financial liabilities | 73.3 | 73.3 | 72.5 | 72.5 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
190
Annual report and accounts 2023
£m | Level 2 | Level 3 | Total |
| 2023 | |||
| Assets | |||
| Financial assets at FVOCI | |||
– Unlisted equity investments | – | 5.0 | 5.0 |
Financial assets at FVPL | – | 38.5 | 38.5 |
Derivative financial instruments | 1.0 | – | 1.0 |
Total assets | 1.0 | 43.5 | 44.5 |
| Liabilities | |||
Derivative financial instruments | – | 5.7 | 5.7 |
Total liabilities | – | 5.7 | 5.7 |
£m | Level 1 | Level 2 | Level 3 | Total |
| 2022 | ||||
| Assets | ||||
| Financial assets at FVOCI | ||||
– Listed equity investments | 0.8 | – | – | 0.8 |
– Unlisted equity investments | – | – | 4.9 | 4.9 |
Financial assets at FVPL | – | – | 36.8 | 36.8 |
Derivative financial instruments | – | 0.3 | – | 0.3 |
Total assets | 0.8 | 0.3 | 41.7 | 42.8 |
| Liabilities | ||||
Derivative financial instruments | – | 1.0 | 6.7 | 7.7 |
Total liabilities | – | 1.0 | 6.7 | 7.7 |
191
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
3. Financial risk management continued
3.8 Fair value estimation continued
| Derivative | Financial | Financial | |
| financial | assets at | assets at | |
| £m | instruments | FVOCI | FVPL |
Opening balance 1 January 2023 | (6.7) | 4.9 | 36.8 |
Additions | (0.6) | 2.2 | 4.6 |
Disposals | – | (2.3) | (1.2) |
Transfer to investment in associate | – | (1.5) | – |
Conversion of loan | – | 1.8 | – |
Transfer to financial assets at FVPL | – | (0.1) | 0.1 |
Settlement | 0.2 | – | – |
Remeasurement | 1.3 | 0.1 | (1.0) |
Exchange movement | 0.1 | (0.1) | (0.8) |
Closing balance 31 December 2023 | (5.7) | 5.0 | 38.5 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
192
Annual report and accounts 2023
4. Critical accounting estimates and management judgements
4.1 Accounting estimates
Estimates are continually evaluated and are based on historical experience, current market conditions and other
factors including expectations of future events that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates. Changes in accounting estimates may be necessary if there are changes in
circumstances on which the estimate was based, or as a result of new information or more experience. The estimates
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year are discussed below.
(a) Defined benefit pensions
Determining the value of the future defined benefit obligation requires estimation in respect of the assumptions used
to calculate present values. These include future mortality, discount rate and inflation. Management determines these
assumptions in consultation with an independent actuary. Details of the estimates made in calculating the defined
benefit obligation are disclosed in Note 10.2.
(b) Goodwill
The Group tests goodwill for impairment on an annual basis by comparing the carrying value of these assets with
the value-in-use calculations of the relevant cash-generating unit (‘CGU’). Within this process, the Group makes a
number of key assumptions including discount rates, terminal growth rates and forecast cash flows. The assumptions
impact the recoverability of goodwill and the requirement for impairment charges in the income statement.
Additional information is disclosed in Note 15, which highlights the critical estimates applied in the value-in-use
calculations for those CGUs that are considered most sensitive to changes in key assumptions and the sensitivity
of these critical estimates.
(c) Debtor recoverability
As described in Note 20, provisions for impairment of trade receivables have been made. In reviewing the
appropriateness of these provisions, consideration has been given to the ageing of the debt and the potential
likelihood of default, taking into account current and future economic conditions. Impairment analysis is performed by
local management using a provision matrix to measure the expected credit losses, which is based on historical credit
loss experience adjusted for forward-looking factors specific to the debtors and economic environment.
4.2 Management judgements
The following are critical judgements, apart from those involving estimations (which are dealt with separately above),
that the Directors have made in the process of applying the Group’s accounting policies and that have the most
significant effect on the amounts recognised in the financial statements.
(a) Non-underlying items
The Group presents underlying profit, earnings and taxation as part of its non-GAAP measures explained in Note
2.3. These measures involve the exclusion of items that, in the judgement of the Directors, need to be disclosed
separately in order to provide additional information with respect to the Group’s operational performance. The items
that are excluded are considered significant and non-operational in nature and meet the Group’s criteria for exclusion
as described in Note 2.3. Further details of these items disclosed by the Directors in the reconciliation to underlying
profit are detailed in Note 8.
(b) Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The judgements made impact the value of the right-of-use assets and lease liabilities recognised in the statement
of financial position upon initial recognition of a lease.
The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this
assessment and that is within the control of the lessee.
193
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
| 2023 | 2022 | |
| £m | £m | |
Asset recognised for costs incurred to obtain a contract – investment management contracts | 1.8 | 2.4 |
Contract assets – consulting contracts | 12.6 | 7.4 |
Accrued income (Note 20.1) | 53.8 | 60.7 |
Total contract-related assets | 68.2 | 70.5 |
Current | 66.4 | 68.1 |
Non-current | 1.8 | 2.4 |
68.2 | 70.5 | |
Deferred revenue | 11.9 | 14.0 |
Total contract liabilities – current | 11.9 | 14.0 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
194
Annual report and accounts 2023
6. Segment analysis
Operating segments reflect internal management reporting to the Group’s chief operating decision-maker, defined
as the Group Executive Board (‘GEB’). The GEB primarily manages the business based on the geographic location in
which the Group operates, with the Investment Management business being managed separately.
The operating segments are identified as the following regions: the UK, Continental Europe and the Middle East
(‘CEME’), Asia Pacific and North America. The Savills Investment Management business is also considered a separate
operating segment. The reportable operating segments derive their revenue primarily from property-related services.
Within the UK and Asia Pacific, both commercial and residential services are provided. Other segments are largely
commercial-based.
Refer to the Group overview on page 5 and the segmental reviews on pages 22 to 26 for further information on
revenue sources. The GEB also reviews the business with reference to the nature of the services in each region.
Therefore, the Group has presented its segment analysis below in a matrix with the primary operating segments
based on regions in which the Group operates.
The GEB assesses the performance of operating segments based on a measure of underlying profit before tax which
adjusts reported pre-tax profit by profit/(loss) on disposals, share-based payment adjustment, significant restructuring
costs, significant transaction-related costs, amortisation and impairment of intangible assets arising from business
combinations, impairment of goodwill and other items that are considered non-operational and material (fair value
gain on a transaction-related call option in the current and prior year). Segmental assets and liabilities are not
measured or reported to the GEB, but non-current assets are disclosed geographically on page 197.
The segment information provided to the GEB for revenue and underlying profit/(loss) before tax for the year ended
31 December 2023 is as follows:
| Property and | ||||||
| Transaction | Facilities | Investment | ||||
| Advisory | Consultancy | Management | Management | Unallocated | Total | |
| 2023 | £m | £m | £m | £m | £m | £m |
| Revenue | ||||||
United Kingdom – commercial | 100.6 | 227. 8 | 304.5 | 43.2 | – | 676.1 |
United Kingdom – residential | 171.0 | 43.2 | 51.2 | – | – | 265.4 |
Total United Kingdom | 271.6 | 271.0 | 355.7 | 43.2 | – | 941.5 |
CEME | 114.6 | 76.3 | 96.7 | 54.8 | – | 342.4 |
Asia Pacific – commercial | 102.1 | 84.1 | 447.1 | 7.8 | – | 641.1 |
Asia Pacific – residential | 17.9 | – | – | – | – | 17.9 |
Total Asia Pacific* | 120.0 | 84.1 | 447.1 | 7.8 | – | 659.0 |
North America** | 266.7 | 28.4 | – | – | – | 295.1 |
Revenue | 772.9 | 459.8 | 899.5 | 105.8 | – | 2,238.0 |
| Underlying profit/(loss) before tax | ||||||
United Kingdom – commercial | 14.0 | 25.4 | 24.5 | 4.8 | (8.7) | 60.0 |
United Kingdom – residential | 19.4 | 4.3 | 5.9 | – | – | 29.6 |
Total United Kingdom | 33.4 | 29.7 | 30.4 | 4.8 | (8.7) | 89.6 |
CEME | (20.3) | 5.0 | (3.8) | 9.3 | – | (9.8) |
Asia Pacific – commercial | (2.9) | 1.9 | 22.2 | 0.7 | – | 21.9 |
Asia Pacific – residential | 1.5 | – | – | – | – | 1.5 |
Total Asia Pacific | (1.4) | 1.9 | 22.2 | 0.7 | – | 23.4 |
North America | (7.4) | (1.0) | – | – | – | (8.4) |
Underlying profit/(loss) before tax*** | 4.3 | 35.6 | 48.8 | 14.8 | (8.7) | 94.8 |
195
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
6. Segment analysis continued
The segment information provided to the GEB for revenue and underlying profit/(loss) for the year ended
31 December 2022 is as follows:
| Property and | ||||||
| Transaction | Facilities | Investment | ||||
| Advisory | Consultancy | Management | Management | Unallocated | Total | |
| 2022 | £m | £m | £m | £m | £m | £m |
| Revenue | ||||||
United Kingdom – commercial | 118.9 | 202.0 | 278.7 | 53.3 | – | 652.9 |
United Kingdom – residential | 208.3 | 46.4 | 48.7 | – | – | 303.4 |
Total United Kingdom | 327. 2 | 248.4 | 327.4 | 53.3 | – | 956.3 |
CEME**** | 129.8 | 71.9 | 81.6 | 51.7 | – | 335.0 |
Asia Pacific – commercial | 145.3 | 87.4 | 404.9 | 7.8 | – | 645.4 |
Asia Pacific – residential | 24.3 | – | – | – | – | 24.3 |
Total Asia Pacific* | 169.6 | 87.4 | 404.9 | 7.8 | – | 669.7 |
North America** | 303.5 | 33.8 | – | – | – | 337.3 |
Revenue | 930.1 | 441.5 | 813.9 | 112.8 | – | 2,298.3 |
| Underlying profit/(loss) before tax | ||||||
United Kingdom – commercial | 20.4 | 21.8 | 21.2 | 8.7 | (16.3) | 55.8 |
United Kingdom – residential | 35.1 | 6.2 | 4.7 | – | – | 46.0 |
Total United Kingdom | 55.5 | 28.0 | 25.9 | 8.7 | (16.3) | 101.8 |
CEME**** | (2.7) | 8.6 | (0.4) | 11.8 | – | 17. 3 |
Asia Pacific – commercial | 13.4 | 2.9 | 21.0 | 0.7 | – | 38.0 |
Asia Pacific – residential | 3.4 | – | – | – | – | 3.4 |
Total Asia Pacific | 16.8 | 2.9 | 21.0 | 0.7 | – | 41.4 |
North America | 2.3 | 1.8 | – | – | – | 4.1 |
Underlying profit/(loss) before tax*** | 71.9 | 41.3 | 46.5 | 21.2 | (16.3) | 164.6 |
* Revenues of £287.9m (2022: £291.8m) are attributable to the Hong Kong and Macau region.
** Revenues of £288.3m (2022: £329.2m) are attributable to the US.
*** Transaction Advisory underlying profit before tax includes depreciation of £34.5m (2022: £31.8m), software amortisation of £2.7m (2022: £2.2m) and share
of post-tax profit from joint ventures and associates of £2.5m (2022: £3.2m). Consultancy underlying profit before tax includes depreciation of £7.6m (2022:
£9.4m), software amortisation of £0.7m (2022: £0.7m) and share of post-tax profit from joint ventures and associates of £0.1m (2022: £0.3m). Property and
Facilities Management underlying profit before tax includes depreciation of £18.1m (2022: £16.1m), software amortisation of £1.6m (2022: £1.5m) and share
of post-tax profit from joint ventures and associates of £7.6m (2022: £8.6m). Investment Management underlying profit before tax includes depreciation
of £2.6m (2022: £2.1m) and software amortisation of £0.5m (2022: £0.5m). Included in Other underlying loss is depreciation of £6.8m (2022: £6.4m) and
software amortisation of £0.5m (2022: £2.0m).
**** Revenue (£27.6m) and underlying profit (£3.7m) attributable to the project management consultancy business in CEME has been reclassified from Property
and Facilities Management to Consultancy to ensure consistent presentation of this business stream with the rest of the Group.
The Unallocated segment includes costs and other expenses at holding company and subsidiary levels, which are not
directly attributable to the operating activities of the Group’s business segments.
A reconciliation of underlying profit before tax to profit before tax is provided in Note 8.
Inter-segmental revenue is not material. No single customer contributed 10% or more to the Group’s revenue for both
2023 and 2022.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
196
Annual report and accounts 2023
Non-current assets by geography are set out below:
| 2023 | 2022 | |
| £m | £m | |
| Non-current assets | ||
United Kingdom | 281.4 | 287.1 |
CEME | 147. 8 | 145.7 |
Asia Pacific | 144.9 | 156.9 |
North America* | 288.5 | 294.6 |
Total non-current assets | 862.6 | 884.3 |
* Total non-current assets of £284.6m (2022: £291.8m) are attributable to the US.
Non-current assets include goodwill and intangible assets, plant, property and equipment, right-of-use assets,
contract-related assets, non-current non-financial assets, and investments in joint ventures and associates. Defined
benefit pension surplus, non-current financial assets and deferred tax assets are not included.
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
| In employee benefit expense | ||
– Restructuring costs | 12.8 | 0.1 |
– Transaction-related costs | 12.8 | 15.4 |
| In depreciation | ||
– Depreciation of right-of-use assets – leasehold properties | 47.6 | 47.2 |
– Depreciation of right-of-use assets – equipment and motor vehicles | 3.4 | 2.0 |
| In other operating expenses | ||
| – Net foreign exchange losses/(gains) (including net losses/(gains) on forward | ||
foreign exchange contracts) | 0.7 | (0.7) |
– Restructuring costs | 1.1 | – |
– Transaction-related costs: deferred consideration revisions | – | (1.6) |
– Transaction-related costs: other | 1.5 | 1.4 |
– Impairment of fixed assets | – | 0.8 |
– Impairment of goodwill | 3.9 | – |
– Expense relating to short-term leases | 0.8 | 1.0 |
– Expense relating to variable lease payments not included in lease liabilities | 0.4 | 1.3 |
– Gain on disposal of leases (including sub-lets) | (4.3) | – |
| In other net gains | ||
| – Dividends from financial assets held at FVOCI | ||
Related to investments held at the end of the reporting period | – | (0.1) |
– Dividends from financial assets held at FVPL | (0.2) | (0.1) |
– Profit on disposal of joint ventures | (0.4) | – |
– Fair value gain on derivative financial instrument | (1.4) | (0.1) |
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OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
7. Operating profit continued
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
| Audit services | ||
Fees payable to the Company’s auditors for the audit of the parent Company | 0.9 | 0.8 |
Fees payable to the Company’s auditors and its associates for the audit of the Company’s subsidiaries | 3.3 | 3.3 |
4.2 | 4.1 | |
Audit-related assurance services | 0.4 | 0.3 |
Total | 4.6 | 4.4 |
8. Underlying profit before tax
| 2023 | 2022 | |
| £m | £m | |
Reported profit before tax | 55.4 | 153.9 |
| Adjustments: | ||
Amortisation of intangible assets arising from business combinations | 9.9 | 9.9 |
Impairment of goodwill | 3.9 | – |
Share-based payment adjustment (see Note 2.3 for explanation) | (1.1) | (14.7) |
Profit on disposal of joint ventures | (0.4) | – |
Restructuring costs | 13.9 | 0.1 |
Transaction-related costs | 14.6 | 15.5 |
Fair value gain on transaction-related call option | (1.4) | (0.1) |
Underlying profit before tax | 94.8 | 164.6 |
Impairment of goodwill in the year relates to the Indonesia cash generating unit. See Note 15 for further details.
Profit on disposal recognised is primarily in relation to disposal of holdings in joint ventures in China.
Restructuring costs in the current year includes the pay-out of settlement costs and the cost of a restructuring
programme, which was focused principally on a small number of areas of the global business where management
anticipates that market recovery will take longer to emerge. In the prior year, restructuring costs related to the ongoing
IFRS 2 ‘Share-based Payment’ charge for deferred shares, with a five-year vesting period, issued in relation to the
restructuring upon acquisition of Aguirre Newman SA (‘Aguirre Newman’) in 2017.
Transaction-related costs includes a £12.7m charge for future consideration payments which are contingent on the
continuity of recipients’ employment in the future (2022: £14.8m). In the current and prior year, a significant portion of
the charge related to the acquisition of DRC Capital LLP (‘DRC’) in 2021. Transaction-related costs also consist of £1.5m
of professional advisory transaction fees (2022: £1.4m) and £0.3m of interest on deferred consideration and non-current
future payments in relation to business acquisitions that are linked to employment (2022: £0.3m). In addition,
transaction-related costs included a £0.1m (2022: £0.6m) charge relating to prepaid amounts issued as part of business
acquisitions that are linked to continued active engagement in the business. Of these items, prepaid amounts that are
linked to active engagement in the business are recorded as employee benefits expenses in the income statement,
unwinding of interest is recorded as a finance cost in the income statement and all other charges/(credits) are recorded
within other operating expenses. In the prior year, transaction-related costs also consist of a £1.6m credit (2023: £nil)
for fair value changes to contingent deferred consideration not related to continuity of employment.
In the current year, a fair value gain of £1.4m was recognised on the fair value measurement of the Samsung Life call
option, which gives Samsung Life the right to purchase up to an additional 10% shareholding in the Savills Investment
Management group subject to the quantum of capital it has invested in SIM products during the initial five-year term
(2022: fair value gain of £0.1m).
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
198
Annual report and accounts 2023
9. Employees
9.1 Employee benefits expense
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Basic salaries and wages | 853.3 | 780.1 | 13.0 | 11.4 |
Profit share and commissions | 464.8 | 557. 3 | 7.4 | 7.9 |
Wages and salaries | 1,318.1 | 1,337.4 | 20.4 | 19.3 |
Social security costs | 109.3 | 103.9 | 3.0 | 2.5 |
Other pension costs | 40.1 | 38.1 | 0.7 | 0.6 |
Share-based payments | 28.8 | 30.4 | 2.5 | 2.9 |
1,496.3 | 1,509.8 | 26.6 | 25.3 |
9.2 Staff numbers
The monthly average number of employees (including Directors) for the year was:
Group | Company | |||
2023 | 2022 | 2023 | 2022 | |
United Kingdom | 9,454 | 9,036 | 194 | 178 |
CEME | 3,220 | 2,888 | – | – |
Asia Pacific | 28,412 | 27,462 | – | – |
North America | 994 | 945 | – | – |
42,080 | 40,331 | 194 | 178 |
The average number of UK employees (including Directors) during the year included 128 employed under fixed-term
and temporary contracts (2022: 116).
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
| Key management | ||||
– Short-term employee benefits | 15.1 | 17.4 | 3.9 | 4.3 |
– Post-employment benefits | 0.1 | 0.1 | 0.1 | 0.1 |
– Share-based payments | 4.2 | 4.9 | 1.8 | 2.1 |
19.4 | 22.4 | 5.8 | 6.5 |
199
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
(Liability)/asset in the statement of financial position | (0.7) | 22.3 | – | 1.2 |
Net interest income included in finance income | 1.0 | 0.4 | 0.1 | – |
Actuarial (loss)/gain included in other comprehensive income | (24.0) | 4.5 | (1.3) | 0.2 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
200
Annual report and accounts 2023
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Present value of funded obligations | (195.1) | (186.7) | (10.8) | (10.3) |
Fair value of plan assets | 194.4 | 209.0 | 10.8 | 11.5 |
(Liability)/asset in the statement of financial position | (0.7) | 22.3 | – | 1.2 |
Group | Company | |||||
| Present | Fair value | Present | Fair value | |||
| value of | of plan | value of | of plan | |||
| obligation | assets | Total | obligation | assets | Total | |
| £m | £m | £m | £m | £m | £m | |
At 1 January 2023 | (186.7) | 209.0 | 22.3 | (10.3) | 11.5 | 1.2 |
Interest (expense)/income | (8.9) | 9.9 | 1.0 | (0.5) | 0.6 | 0.1 |
| Remeasurements: | ||||||
| – Loss on plan assets, excluding amounts | ||||||
included in interest income | – | (18.4) | (18.4) | – | (1.0) | (1.0) |
| – Loss from change in financial | ||||||
assumptions | (5.7) | – | (5.7) | (0.3) | – | (0.3) |
| – Gain from change in demographic | ||||||
assumptions | 1.7 | – | 1.7 | 0.1 | – | 0.1 |
– Experience losses | (1.6) | – | (1.6) | (0.1) | – | (0.1) |
Benefit payments | 6.1 | (6.1) | – | 0.3 | (0.3) | – |
At 31 December 2023 | (195.1) | 194.4 | (0.7) | (10.8) | 10.8 | – |
Group | Company | |||||
| Present | Fair value | Present | Fair value | |||
| value of | of plan | value of | of plan | |||
| obligation | assets | Total | obligation | assets | Total | |
| £m | £m | £m | £m | £m | £m | |
At 1 January 2022 | (301.7) | 319.1 | 17.4 | (16.6) | 17.6 | 1.0 |
Interest (expense)/income | (6.0) | 6.4 | 0.4 | (0.3) | 0.3 | – |
| Remeasurements: | ||||||
| – Loss on plan assets, excluding amounts | ||||||
included in interest income | – | (108.7) | (108.7) | – | (6.0) | (6.0) |
| – Gain from change in financial | ||||||
assumptions | 115.9 | – | 115.9 | 6.4 | – | 6.4 |
| – Gain from change in demographic | ||||||
assumptions | 9.0 | – | 9.0 | 0.5 | – | 0.5 |
– Experience losses | (11.7) | – | (11.7) | (0.7) | – | (0.7) |
Benefit payments | 7.8 | (7.8) | – | 0.4 | (0.4) | – |
At 31 December 2022 | (186.7) | 209.0 | 22.3 | (10.3) | 11.5 | 1.2 |
201
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
10. Pension schemes continued
10.2 Defined benefit plan continued
| SFM Plan | ||
| 2023 | 2022 | |
| £m | £m | |
Asset in the statement of financial position | 3.2 | 3.2 |
Net interest income included in finance income | 0.1 | – |
Actuarial (losses)/gains included in other comprehensive income | (0.5) | 2.0 |
| SFM Plan | ||
| 2023 | 2022 | |
| £m | £m | |
Present value of funded obligations | (10.8) | (9.9) |
Fair value of plan assets | 14.0 | 13.1 |
Asset in the statement of financial position | 3.2 | 3.2 |
| SFM Plan | |||
| Present value | Fair value | ||
| of obligation | of plan assets | Total | |
| £m | £m | £m | |
At 1 January 2023 | (9.9) | 13.1 | 3.2 |
Interest (expense)/income | (0.4) | 0.5 | 0.1 |
| Remeasurements: | |||
– Gain on plan assets, excluding amounts included in interest income | – | 0.6 | 0.6 |
– Loss from change in financial assumptions | (0.9) | – | (0.9) |
– Experience losses | (0.2) | – | (0.2) |
Employer contributions | – | 0.4 | 0.4 |
Benefit payments | 0.4 | (0.4) | – |
Exchange movement | 0.2 | (0.2) | – |
At 31 December 2023 | (10.8) | 14.0 | 3.2 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
202
Annual report and accounts 2023
| SFM Plan | |||
| Present value | Fair value | ||
| of obligation | of plan assets | Total | |
| £m | £m | £m | |
At 1 January 2022 | (13.5) | 14.2 | 0.7 |
Interest (expense)/income | (0.2) | 0.2 | – |
| Remeasurements: | |||
– Loss on plan assets, excluding amounts included in interest income | – | (2.1) | (2.1) |
– Gain from change in demographic assumptions | 4.4 | – | 4.4 |
– Experience losses | (0.3) | – | (0.3) |
Employer contributions | – | 0.5 | 0.5 |
Benefit payments | 0.4 | (0.4) | – |
Exchange movement | (0.7) | 0.7 | – |
At 31 December 2022 | (9.9) | 13.1 | 3.2 |
UK Plan | SFM Plan | |||
As at 31 December | 2023 | 2022 | 2023 | 2022 |
Expected rate of salary increases | 3.25% | 3.25% | 2.50% | 2.50% |
Projection of social security contribution ceiling | – | – | 2.25% | 2.25% |
| Rate of increase to pensions in payment | ||||
– pension promise before 1 January 1986 | – | – | 2.20% | 2.20% |
– pension promise after 1 January 1986 | – | – | 2.20% | 2.20% |
– accrued before 6 April 1997 | 3.00% | 3.00% | – | – |
– accrued after 5 April 1997 | 2.80% | 3.00% | – | – |
– accrued after 5 April 2005 | 2.00% | 2.00% | – | – |
| Rate of increase to pensions in deferment | ||||
– accrued before 6 April 2001 | 5.00% | 5.00% | – | – |
– accrued after 5 April 2001 | 2.50% | 2.60% | – | – |
– accrued after 5 April 2009 | 2.50% | 2.50% | – | – |
Discount rate | 4.50% | 4.80% | 3.55% | 4.24% |
Inflation assumption | 3.00% | 3.20% | 2.20% | 2.20% |
UK Plan | SFM Plan | ||||
2023 | 2022 | 2023 | 2022 | ||
Retiring at the end of the reporting year | – Male | 87.9 | 88.1 | 85.8 | 85.6 |
– Female | 89.7 | 89.8 | 89.2 | 89.0 | |
Retiring 20 years after the end of the reporting year | – Male | 89.7 | 89.8 | 88.5 | 88.4 |
– Female | 91.4 | 91.5 | 91.4 | 91.3 |
203
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
10. Pension schemes continued
10.2 Defined benefit plan continued
| Impact on present value | ||
| of scheme obligations | ||
| UK Plan | SFM Plan | |
| £m | £m | |
1% increase in discount rates | (25.1) | (1.4) |
1% increase in inflation rate | 12.2 | 1.0 |
1% increase in salary increase rate | 0.9 | 0.1 |
1 year increase in life expectancy | 6.3 | 0.4 |
| UK Plan | ||||||||
2023 | 2022 | |||||||
| Quoted | Unquoted | Total | Quoted | Unquoted | Total | |||
| £m | £m | £m | % | £m | £m | £m | % | |
– Government bonds | 63.2 | – | 63.2 | 33% | 44.1 | – | 44.1 | 22% |
– Corporate bonds (investment grade) | 2.7 | – | 2.7 | 1% | 2.7 | – | 2.7 | 1% |
– Cash and cash equivalents | 15.4 | – | 15.4 | 8% | 32.0 | – | 32.0 | 15% |
Liability-driven investment (‘LDI’)* | 81.3 | – | 81.3 | 42% | 78.8 | – | 78.8 | 38% |
Investment funds | – | 34.6 | 34.6 | 18% | – | 35.5 | 35.5 | 17% |
Bonds | 24.7 | 40.8 | 65.5 | 34% | 23.4 | 35.7 | 59.1 | 28% |
Cash and cash equivalents | 2.7 | – | 2.7 | 1% | 17.1 | – | 17.1 | 8% |
Asset-backed securities** | 10.3 | – | 10.3 | 5% | 18.5 | – | 18.5 | 9% |
Total | 119.0 | 75.4 | 194.4 | 100% | 137.8 | 71.2 | 209.0 | 100% |
| UK Plan | |
| Impact on | |
| value of Plan | |
| assets | |
| £m | |
1% increase in discount rates* | (22.0) |
1% increase in inflation rate | 12.0 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
204
Annual report and accounts 2023
| SFM Plan | ||||
2023 | 2022 | |||
| Unquoted | Unquoted | |||
£m | % | £m | % | |
Investment funds | 14.0 | 100% | 13.2 | 100% |
Total | 14.0 | 100% | 13.2 | 100% |
| Less than | Between | Between | Over | ||
| a year | 1–2 years | 2–5 years | 5 years | Total | |
| At 31 December 2023 | £m | £m | £m | £m | £m |
| Pension benefit payments | |||||
– UK Plan | 6.3 | 15.7 | 27. 2 | 421.9 | 471.1 |
– SFM Plan | 0.5 | 0.5 | 1.7 | 15.9 | 18.6 |
205
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Bank interest receivable | 49.5 | 13.3 |
Net interest on defined benefit pension assets | 1.1 | 0.4 |
Finance income | 50.6 | 13.7 |
Bank interest payable | (28.9) | (8.5) |
Unwinding of discounts on liabilities | (0.4) | (0.5) |
Finance charges on lease liabilities | (9.2) | (9.0) |
Finance costs | (38.5) | (18.0) |
Net finance income/(cost) | 12.1 | (4.3) |
12. Income tax expense
Analysis of tax expense for the year:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
| Current tax | ||
| United Kingdom: | ||
Corporation tax on profits for the year | 13.2 | 15.9 |
Adjustment in respect of prior years | 0.7 | 2.8 |
13.9 | 18.7 | |
Overseas tax | 14.3 | 22.2 |
Adjustment in respect of prior years | (0.5) | 0.9 |
Total current tax | 27.7 | 41.8 |
| Deferred tax | ||
| Representing: | ||
United Kingdom | 1.2 | 4.0 |
Effect of change in UK tax rate on deferred tax | (0.2) | (2.1) |
Overseas tax | (9.1) | (6.1) |
Adjustment in respect of prior years | (3.7) | (3.5) |
Total deferred tax (Note 19) | (11.8) | (7.7) |
Income tax expense | 15.9 | 34.1 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
206
Annual report and accounts 2023
The tax on the Group’s profit before income tax differs from the theoretical amount that would arise using the UK
weighted average tax rate of 23.5% (2022: 19%) applicable to profits of the consolidated entities as follows:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Profit before income tax | 55.4 | 153.9 |
Tax on profit at 23.5% (2022: 19%) | 13.0 | 29.3 |
| Effects of: | ||
Adjustment in respect of prior years | (3.5) | 0.2 |
Difference in overseas tax rates | (0.3) | 3.6 |
Utilisation of previously unprovided tax losses | (0.7) | (0.8) |
Expenses and other charges not deductible for tax purposes | 10.2 | 7.1 |
Non-assessable income | (0.6) | (0.6) |
Tax on joint ventures and associates | (2.0) | (2.6) |
Effect of change in tax rates on deferred tax | (0.2) | (2.1) |
Income tax expense | 15.9 | 34.1 |
The effective tax rate of the Group for the year ended 31 December 2023 is 28.7% (2022: 22.2%), which is higher
(2022: higher) than the UK weighted average applicable rate.
Detailed analysis of the impact from the application of OECD’s Pillar Two Model Rules on both historical performance
and forward-looking projections is underway. As the Group does not generally operate in low tax jurisdictions, the
impact is not expected to be material.
Deferred tax has been determined using the applicable effective future tax rate that will apply in the expected period
of utilisation of the deferred tax asset or liability.
The tax credited/(charged) to other comprehensive income is as follows:
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
| Tax on items that will not be reclassified to profit or loss | ||||
Deferred tax on remeasurement of defined benefit pension scheme | 5.8 | (1.5) | 0.3 | – |
Deferred tax on pension – effect of tax rate change | 2.6 | (2.4) | 0.1 | (0.1) |
8.4 | (3.9) | 0.4 | (0.1) | |
Tax on items relating to components of other comprehensive income | 8.4 | (3.9) | 0.4 | (0.1) |
207
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
12. Income tax expense continued
The tax credited/(charged) to reserves is as follows:
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Current tax on share-based payment arrangements | 0.2 | 0.4 | – | 0.1 |
Deferred tax on share-based payment arrangements | 0.3 | (3.0) | 0.1 | (0.7) |
Current tax on IFRS 16 lease recognition release | 0.2 | 0.2 | 0.1 | 0.1 |
Deferred tax on IFRS 16 recognition release | (0.2) | (0.2) | (0.1) | (0.1) |
Deferred tax on revaluation of FVOCI investments | (0.2) | – | – | – |
Current tax on foreign exchange reserve movements | (0.2) | 0.3 | – | – |
Tax on items recognised directly in reserves | 0.1 | (2.3) | 0.1 | (0.6) |
13. Dividends – Group and Company
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
| Amounts recognised as distribution to equity holders in the year: | ||||
| In respect of the previous year | ||||
Ordinary final dividend of 13.4p per share (2021: 12.75p) | 18.2 | 17.6 | 18.4 | 17. 8 |
Supplemental interim dividend of 15.6p per share (2021: 15.6p) | 21.2 | 21.6 | 21.5 | 21.8 |
Special dividend of £nil per share (2021: 27.05p) | – | 37.4 | – | 37.8 |
| In respect of the current year | ||||
Interim dividend of 6.9p per share (2022: 6.6p) | 9.4 | 8.9 | 9.5 | 9.1 |
48.8 | 85.5 | 49.4 | 86.5 |
The Group paid £2.2m (2022: £0.4m) of dividends to non-controlling interests.
Under the terms of the Savills plc 1992 Employee Benefit Trust (the ‘EBT’), the Trustees have waived their dividend
entitlement for all shares held by the Trust. The dividends paid to the Rabbi Trust are eliminated upon Group
consolidation, as a result the dividends paid by the Group and the Company are not equal.
The Board recommends a final dividend of 13.9 p per ordinary share (amounting to £19 .0 m), alongside the
supplemental interim dividend of 2.0p per ordinary share (amounting to £2.7m), to be paid on 23 May 2024 to
Shareholders on the register at 12 April 2024. These financial statements do not reflect this dividend payable.
The total paid and recommended ordinary and supplemental dividend for the 2023 financial year comprises an
aggregate distribution of 22.8 p per ordinary share (2022: 35.6 p per ordinary share).
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
208
Annual report and accounts 2023
14. Earnings per share
14.1 Basic and diluted earnings per share
Basic earnings per share (‘EPS’) are based on the profit attributable to owners of the Company and the weighted
average number of ordinary shares in issue during the year, excluding the weighted average number of ordinary shares
held by the EBT (2023 closing: 7,615,420 shares, 2022 closing: 6,780,308 shares) and the Rabbi Trust (2023 closing:
1,502,155 shares, 2022 closing: 1,914,869 shares).
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume
conversion of dilutive potential ordinary shares, being the share options granted to employees where the exercise
price is less than the average market price of the Company’s ordinary shares during the year and where performance
conditions have been met.
The earnings and the shares used in the calculations are as follows:
| 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
| Earnings | Shares | EPS | Earnings | Shares | EPS | |
| £m | million | pence | £m | million | pence | |
Basic earnings per share | 40.8 | 135.9 | 30.0 | 119.4 | 137.3 | 87.0 |
Effect of additional shares issuable under option | – | 5.8 | (1.2) | – | 7.9 | (4.8) |
Diluted earnings per share | 40.8 | 141.7 | 28.8 | 119.4 | 145.2 | 82.2 |
14.2 Underlying basic and diluted earnings per share
| 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
| Earnings | Shares | EPS | Earnings | Shares | EPS | |
| £m | million | pence | £m | million | pence | |
Basic earnings per share | 40.8 | 135.9 | 30.0 | 119.4 | 137.3 | 87.0 |
Amortisation of intangible assets arising from business combinations after tax | 7.6 | – | 5.6 | 7.6 | – | 5.5 |
Impairment of goodwill after tax | 4.0 | – | 2.9 | |||
Share-based payment adjustment after tax | (0.6) | – | (0.4) | (11.9) | – | (8.7) |
Profit on disposal of joint ventures after tax | (0.4) | – | (0.3) | – | – | – |
Restructuring costs after tax | 10.6 | – | 7.8 | 0.1 | – | 0.1 |
Transaction-related costs after tax | 14.3 | – | 10.5 | 15.3 | – | 11.1 |
Fair value gain on transaction-related call option | (1.4) | – | (1.0) | (0.1) | – | (0.1) |
Underlying basic earnings per share | 74.9 | 135.9 | 55.1 | 130.4 | 137.3 | 94.9 |
Effect of additional shares issuable under option | – | 5.8 | (2.2) | – | 7.9 | (5.1) |
Underlying diluted earnings per share | 74.9 | 141.7 | 52.9 | 130.4 | 145.2 | 89.8 |
Refer to Note 8 for the gross amounts of the above adjustments and a reconciliation between reported profit before
tax and underlying profit before tax, alongside further details on each of the adjustments.
209
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
| Group | ||||||||
| Investment | ||||||||
| Customer/ | and property | |||||||
| business | management | Order | Computer | Company | ||||
| Goodwill | relationships | contracts | backlogs | Brands | software | Total | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Cost | ||||||||
At 1 January 2023 restated* | 505.0 | 44.4 | 59.4 | 3.8 | 4.7 | 45.2 | 662.5 | 10.0 |
| Additions through business | ||||||||
combinations (Note 18.6) | 10.4 | – | 0.5 | – | – | – | 10.9 | – |
Other additions | – | – | – | – | – | 5.5 | 5.5 | – |
Disposals | – | – | – | – | – | (4.4) | (4.4) | (5.2) |
Exchange movement | (14.2) | (0.8) | (0.7) | (0.2) | (0.1) | (0.9) | (16.9) | – |
At 31 December 2023 | 501.2 | 43.6 | 59.2 | 3.6 | 4.6 | 45.4 | 657.6 | 4.8 |
Accumulated amortisation and impairment | ||||||||
At 1 January 2023 | 55.4 | 26.0 | 31.8 | 2.9 | 2.3 | 28.2 | 146.6 | 8.2 |
Amortisation charge for the year | – | 3.3 | 5.7 | 0.5 | 0.3 | 6.0 | 15.8 | 0.5 |
Impairment in the year | 3.9 | – | – | – | – | – | 3.9 | – |
Disposals | – | – | – | – | – | (4.5) | (4.5) | (5.2) |
Exchange movement | (1.7) | (0.4) | (0.6) | (0.1) | (0.1) | (0.7) | (3.6) | – |
At 31 December 2023 | 57.6 | 28.9 | 36.9 | 3.3 | 2.5 | 29.0 | 158.2 | 3.5 |
| Net book value | ||||||||
At 31 December 2023 | 443.6 | 14.7 | 22.3 | 0.3 | 2.1 | 16.4 | 499.4 | 1.3 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
210
Annual report and accounts 2023
| Group | ||||||||
| Investment | ||||||||
| Customer/ | and property | |||||||
| Goodwill | business | management | Order | Computer | Company | |||
| restated* | relationships | contracts | backlogs | Brands | software | Total | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | |
| Cost | ||||||||
At 1 January 2022 | 463.8 | 40.8 | 58.7 | 3.5 | 4.6 | 38.4 | 609.8 | 10.0 |
| Additions through business | ||||||||
combinations restated* | 13.6 | 1.9 | 1.1 | – | – | 0.5 | 17.1 | – |
Other additions | – | – | – | – | – | 7.0 | 7.0 | – |
Disposals | – | – | (1.1) | – | – | (1.9) | (3.0) | – |
Exchange movement | 27.6 | 1.7 | 0.7 | 0.3 | 0.1 | 1.2 | 31.6 | – |
At 31 December 2022 restated* | 505.0 | 44.4 | 59.4 | 3.8 | 4.7 | 45.2 | 662.5 | 10.0 |
Accumulated amortisation and impairment | ||||||||
At 1 January 2022 | 52.2 | 22.0 | 26.6 | 2.1 | 1.8 | 20.9 | 125.6 | 6.2 |
Amortisation charge for the year | – | 3.3 | 5.6 | 0.6 | 0.4 | 7.0 | 16.9 | 2.0 |
Disposals | – | – | (1.1) | – | – | (0.6) | (1.7) | – |
Exchange movement | 3.2 | 0.7 | 0.7 | 0.2 | 0.1 | 0.9 | 5.8 | – |
At 31 December 2022 | 55.4 | 26.0 | 31.8 | 2.9 | 2.3 | 28.2 | 146.6 | 8.2 |
| Net book value | ||||||||
At 31 December 2022 restated* | 449.6 | 18.4 | 27.6 | 0.9 | 2.4 | 17.0 | 515.9 | 1.8 |
211
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
15. Goodwill and intangible assets continued
| Indefinite | |||||||
| Property and | life | ||||||
| Transaction | Facilities | Investment | intangible | ||||
| Advisory | Consultancy | Management | Management | Total | Goodwill | assets* | |
| 2023 | £m | £m | £m | £m | £m | £m | £m |
United Kingdom | 34.3 | 13.6 | 30.9 | 32.2 | 111.0 | 109.0 | 2.0 |
CEME | 62.3 | 19.3 | 20.8 | 4.7 | 107.1 | 107.1 | – |
Asia Pacific | 16.3 | 5.2 | 38.6 | 1.4 | 61.5 | 61.5 | – |
North America | 156.3 | 9.7 | – | – | 166.0 | 166.0 | – |
| Total goodwill and indefinite life | |||||||
intangible assets | 269.2 | 47.8 | 90.3 | 38.3 | 445.6 | 443.6 | 2.0 |
| Indefinite | |||||||
| Property and | life | ||||||
| Transaction | Facilities | Investment | intangible | ||||
| Advisory | Consultancy | Management | Management | Total | Goodwill | assets* | |
| 2022 restated** | £m | £m | £m | £m | £m | £m | £m |
United Kingdom | 29.3 | 12.9 | 30.9 | 32.2 | 105.3 | 103.3 | 2.0 |
CEME | 60.2 | 19.6 | 21.1 | 4.8 | 105.7 | 105.7 | – |
Asia Pacific | 20.6 | 5.9 | 38.0 | 1.4 | 65.9 | 65.9 | – |
North America | 164.5 | 10.2 | – | – | 174.7 | 174.7 | – |
| Total goodwill and indefinite life | |||||||
intangible assets | 274.6 | 48.6 | 90.0 | 38.4 | 451.6 | 449.6 | 2.0 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
212
Annual report and accounts 2023
| 2023 | 2022 | |
| Discount rate | Discount rate | |
| range | range | |
United Kingdom | 12.4% | 12.0% |
Continental Europe | 10.6% – 14.7% | 11.3% – 16.0% |
Asia Pacific | 10.4% – 15.1% | 10.9% – 16.5% |
North America | 11.7% – 12.1% | 12.3% – 12.5% |
Middle East | 14.0% | 14.6% |
| 2023 | 2022 | |
| Long-term | Long-term | |
| growth rate | growth rate | |
| range | range | |
United Kingdom | 1.5% | 1.7% |
Continental Europe | 0.9% – 3.1% | 1.1% – 3.3% |
Asia Pacific | 0.4% – 6.8% | 0.8% – 6.8% |
North America | 1.7% – 2.1% | 1.7% – 1.9% |
Middle East | 4.3% | 2.9% |
213
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
16. Property, plant and equipment
| Equipment | ||||
| Freehold | Leasehold | and motor | ||
| property | improvements | vehicles | Total | |
| Group | £m | £m | £m | £m |
| Cost | ||||
At 1 January 2023 | 0.1 | 104.8 | 86.7 | 191.6 |
Additions through business combinations (Note 18.6) | – | 0.1 | 0.2 | 0.3 |
Additions | – | 8.9 | 8.5 | 17.4 |
Reclassification to equipment and motor vehicles | – | (1.2) | 1.2 | – |
Reclassification to right-of-use-assets | – | – | (0.3) | (0.3) |
Disposals | (0.1) | (6.0) | (10.6) | (16.7) |
Exchange movement | – | (2.3) | (2.8) | (5.1) |
At 31 December 2023 | – | 104.3 | 82.9 | 187. 2 |
| Accumulated depreciation and impairment | ||||
At 1 January 2023 | – | 58.0 | 56.6 | 114.6 |
Charge for the year | – | 9.0 | 9.6 | 18.6 |
Disposals | – | (2.4) | (8.9) | (11.3) |
Exchange movement | – | (1.0) | (1.8) | (2.8) |
At 31 December 2023 | – | 63.6 | 55.5 | 119.1 |
| Net book value | ||||
At 31 December 2023 | – | 40.7 | 27.4 | 68.1 |
| Equipment | ||||
| Freehold | Leasehold | and motor | ||
| property | improvements | vehicles | Total | |
| Group | £m | £m | £m | £m |
| Cost | ||||
At 1 January 2022 | 0.1 | 91.9 | 71.2 | 163.2 |
Additions | – | 6.1 | 13.7 | 19.8 |
Additions through business combinations | – | 3.4 | 2.0 | 5.4 |
Reclassification to equipment and motor vehicles | – | (0.7) | 0.7 | – |
Disposals | – | (0.2) | (4 .9) | (5.1) |
Exchange movement | – | 4.3 | 4.0 | 8.3 |
At 31 December 2022 | 0.1 | 104.8 | 86.7 | 191.6 |
| Accumulated depreciation and impairment | ||||
At 1 January 2022 | – | 47.4 | 49.5 | 96.9 |
Charge for the year | – | 7. 8 | 8.8 | 16.6 |
Impairment | – | 0.8 | – | 0.8 |
Disposals | – | – | (4.7) | (4 .7) |
Exchange movement | – | 2.0 | 3.0 | 5.0 |
At 31 December 2022 | – | 58.0 | 56.6 | 114.6 |
| Net book value | ||||
At 31 December 2022 | 0.1 | 46.8 | 30.1 | 77.0 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
214
Annual report and accounts 2023
| Freehold | |||
| property | Equipment | Total | |
| Company | £m | £m | £m |
| Cost | |||
At 1 January 2023 | 0.1 | 10.4 | 10.5 |
Additions | – | 1.1 | 1.1 |
Disposals | (0.1) | (0.4) | (0.5) |
At 31 December 2023 | – | 11.1 | 11.1 |
| Accumulated depreciation and impairment | |||
At 1 January 2023 | – | 7.1 | 7.1 |
Charge for the year | – | 1.5 | 1.5 |
Disposals | – | (0.4) | (0.4) |
At 31 December 2023 | – | 8.2 | 8.2 |
| Net book value | |||
At 31 December 2023 | – | 2.9 | 2.9 |
| Freehold | |||
| property | Equipment | Total | |
| Company | £m | £m | £m |
| Cost | |||
At 1 January 2022 | 0.1 | 8.9 | 9.0 |
Additions | – | 1.5 | 1.5 |
At 31 December 2022 | 0.1 | 10.4 | 10.5 |
| Accumulated depreciation and impairment | |||
At 1 January 2022 | – | 5.7 | 5.7 |
Charge for the year | – | 1.4 | 1.4 |
At 31 December 2022 | – | 7.1 | 7.1 |
| Net book value | |||
At 31 December 2022 | 0.1 | 3.3 | 3.4 |
215
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
| Equipment | Total | ||
| Leasehold | and motor | right-of-use | |
| properties | vehicles | assets | |
| Group | £m | £m | £m |
| Cost | |||
At 1 January 2023 | 368.6 | 8.5 | 377.1 |
Additions | 28.0 | 4.2 | 32.2 |
Additions through business combinations (Note 18.6) | 0.5 | – | 0.5 |
Lease modifications | 8.5 | – | 8.5 |
Transfers | (3.6) | 3.9 | 0.3 |
Disposals (including disposals relating to sub-lets*) | (25.1) | (1.7) | (26.8) |
Exchange movement | (10.3) | (0.2) | (10.5) |
At 31 December 2023 | 366.6 | 14.7 | 381.3 |
| Accumulated depreciation and impairment | |||
At 1 January 2023 | 148.4 | 4.9 | 153.3 |
Charge for the year | 47.6 | 3.4 | 51.0 |
Disposals (including disposals relating to sub-lets*) | (14.6) | (1.8) | (16.4) |
Transfers | (1.0) | 1.0 | – |
Exchange movement | (4.7) | (0.2) | (4.9) |
At 31 December 2023 | 175.7 | 7. 3 | 183.0 |
| Net book value | |||
At 31 December 2023 | 190.9 | 7.4 | 198.3 |
| Equipment | Total | ||
| Leasehold | and motor | right-of-use | |
| properties | vehicles | assets | |
| Group | £m | £m | £m |
| Cost | |||
At 1 January 2022 | 338.4 | 10.0 | 348.4 |
Additions | 29.2 | 1.7 | 30.9 |
Additions through business combinations | 2.7 | – | 2.7 |
Disposals/lease modifications | (18.6) | (3.6) | (22.2) |
Exchange movement | 16.9 | 0.4 | 17.3 |
At 31 December 2022 | 368.6 | 8.5 | 377.1 |
| Accumulated depreciation and impairment | |||
At 1 January 2022 | 110.4 | 5.4 | 115.8 |
Charge for the year | 47. 2 | 2.0 | 49.2 |
Disposals/lease modifications | (15.4) | (2.8) | (18.2) |
Exchange movement | 6.2 | 0.3 | 6.5 |
At 31 December 2022 | 148.4 | 4.9 | 153.3 |
| Net book value | |||
At 31 December 2022 | 220.2 | 3.6 | 223.8 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
216
Annual report and accounts 2023
| Right-of-use | |
| assets – | |
| Leasehold | |
| Properties | |
| Company | £m |
| Cost | |
At 1 January 2023 | 55.8 |
Additions | 7.5 |
Disposals | (1.1) |
At 31 December 2023 | 62.2 |
| Accumulated depreciation and impairment | |
At 1 January 2023 | 15.8 |
Charge for the year | 4.7 |
Disposals | (0.1) |
At 31 December 2023 | 20.4 |
| Net book value | |
At 31 December 2023 | 41.8 |
| Right-of-use | |
| assets – | |
| Leasehold | |
| Properties | |
| Company | £m |
| Cost | |
At 1 January 2022 | 64.9 |
Additions | 0.7 |
Disposal relating to sub-let* | (9.8) |
At 31 December 2022 | 55.8 |
| Accumulated depreciation and impairment | |
At 1 January 2022 | 15.5 |
Charge for the year | 5.0 |
Disposal relating to sub-let* | (4.7 ) |
At 31 December 2022 | 15.8 |
| Net book value | |
At 31 December 2022 | 40.0 |
217
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Joint ventures | Associates | |||
| Investment | ||||
| (including | ||||
| Investment | loans) | Goodwill | Total | |
| £m | £m | £m | £m | |
| Cost or valuation | ||||
At 1 January 2023 | 11.0 | 2.5 | 0.4 | 2.9 |
Additions | 0.5 | – | 3.2 | 3.2 |
Disposals | (0.3) | – | – | – |
Exchange movement | (0.6) | – | – | – |
At 31 December 2023 | 10.6 | 2.5 | 3.6 | 6.1 |
| Share of profit | ||||
At 1 January 2023 | 18.5 | 4.6 | – | 4.6 |
Group’s share of profit from continuing operations | 7.7 | 2.5 | – | 2.5 |
Dividends received | (8.6) | (1.4) | – | (1.4) |
Exchange movement | (0.9) | (0.2) | – | (0.2) |
At 31 December 2023 | 16.7 | 5.5 | – | 5.5 |
| Total | ||||
At 31 December 2023 | 27.3 | 8.0 | 3.6 | 11.6 |
Joint ventures | Associates | |||
| Investment | Investment | Goodwill | Total | |
| £m | £m | £m | £m | |
| Cost or valuation | ||||
At 1 January 2022 | 9.7 | 2.3 | 0.4 | 2.7 |
Additions | 0.4 | – | – | – |
Disposals | (0.1) | – | – | – |
Exchange movement | 1.0 | 0.2 | – | 0.2 |
At 31 December 2022 | 11.0 | 2.5 | 0.4 | 2.9 |
| Share of profit | ||||
At 1 January 2022 | 15.5 | 4.9 | – | 4.9 |
Group’s share of profit from continuing operations | 8.8 | 3.3 | – | 3.3 |
Dividends received | (7.1) | (4 . 2) | – | (4.2) |
Exchange movement | 1.3 | 0.6 | – | 0.6 |
At 31 December 2022 | 18.5 | 4.6 | – | 4.6 |
| Total | ||||
At 31 December 2022 | 29.5 | 7.1 | 0.4 | 7.5 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
218
Annual report and accounts 2023
| 2023 | 2022 | |
| £m | £m | |
| Listed securities | ||
OnTheMarket plc | – | 0.8 |
| Unlisted securities | ||
Vucity Limited | – | 1.8 |
Andor Holdco Limited | 1.7 | – |
Income Analytics Limited | 1.2 | 0.7 |
YOPA Property Limited | – | – |
Daishin GK Canal | – | 0.7 |
Thirdfort Limited | 0.3 | 0.3 |
Home Click Pte Limited | 0.2 | 0.2 |
Other smaller investments | 1.6 | 1.2 |
5.0 | 5.7 |
| 2023 | 2022 | |
| £m | £m | |
Sterling | 3.4 | 3.8 |
Japanese yen | 0.6 | 1.0 |
Other | 1.0 | 0.9 |
5.0 | 5.7 |
219
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
18. Investments and transactions continued
| 2023 | 2022 | |
| £m | £m | |
Convertible loans | 15.1 | 15.9 |
Instruments held in investment funds | 23.4 | 20.9 |
38.5 | 36.8 |
18.4 Company – Investments in subsidiaries
| Investments | ||||
| in subsidiaries | ||||
| indirectly owned | ||||
| Direct | – share-based | |||
| investments | payment | Investments | ||
| in subsidiaries | contribution | in EBT | Total | |
| £m | £m | £m | £m | |
At 1 January 2022 | 81.5 | 69.9 | 23.6 | 175.0 |
| Increase due to IFRS 2 share-based payment contribution | ||||
tosubsidiaries | – | 27. 5 | – | 27.5 |
Increase due to capital contribution to EBT | – | – | 37. 3 | 37. 3 |
Decrease due to EBT contributions from subsidiaries | – | (45.9) | – | (45.9) |
| Decrease due to write-off of investment in EBT upon | ||||
exerciseof options | – | – | (17.5) | (17.5) |
At 31 December 2022 | 81.5 | 51.5 | 43.4 | 176.4 |
| Increase due to IFRS 2 share-based payment contribution | ||||
tosubsidiaries | – | 26.4 | – | 26.4 |
Increase due to capital contribution to EBT | – | – | 23.6 | 23.6 |
Decrease due to EBT contributions from subsidiaries | – | (26.1) | – | (26.1) |
| Decrease due to write-off of investment in EBT upon | ||||
exerciseof options | – | – | (17.9) | (17.9) |
At 31 December 2023 | 81.5 | 51.8 | 49.1 | 182.4 |
Refer to Note 35 for a full list of the Group’s subsidiaries. The Company directly owns Savills Holding Company
Limited, all other subsidiaries in the Group are indirectly owned. The carrying value of the investment in the Company’s
subsidiary is assessed for impairment by comparing the carrying value of the investment to the underlying net assets
of the subsidiary. No impairment was identified during the year.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
220
Annual report and accounts 2023
18.5 Non-controlling interests
Material non-controlling interests
The total non-controlling interest at the end of the year is £34.9m (2022: £37.2m). The majority of non-controlling
interests in respect of the Group’s subsidiaries where the Group does not own a holding of 100% are not considered
to be individually material, with the exception of the 25% non-controlling interest held by Samsung Life in the Savills
IM Group (31 December 2023: £33.5m, 31 December 2022: £33.7m). The loss after tax allocated to the non-controlling
interest of the Savills IM Group for the year ended 31 December 2023 was £1.9m (31 December 2022: £0.2m profit
after tax).
| 31 December | 31 December | |
| 2023 | 2022 | |
| Savills IM Group | £m | £m |
Non-current assets | 106.8 | 110.0 |
Current assets | 113.7 | 105.3 |
Current liabilities | (69.6) | (47.0) |
Non-current liabilities | (16.8) | (33.5) |
Net assets | 134.1 | 134.8 |
Revenue | 105.8 | 112.7 |
(Loss)/profit after tax | (7.4) | 1.1 |
A reconciliation of non-controlling interest is as follows:
| Non- | ||||
| controlling | ||||
| Savills IM | interest in | Other non- | Total non- | |
| Group net | Savills IM | controlling | controlling | |
| assets | Group | interests | Interests | |
| £m | £m | £m | £m | |
Balance at 1 January 2023 | 134.8 | 33.7 | 3.5 | 37.2 |
(Loss)/income for the year | (7.4) | (1.9) | 0.6 | (1.3) |
| Other comprehensive loss: | ||||
Remeasurement of defined benefit pension scheme | (0.5) | (0.1) | – | (0.1) |
Tax on items taken to other comprehensive income | 0.1 | – | – | – |
Currency translation differences | (1.5) | (0.4) | (0.3) | (0.7) |
Total comprehensive (loss)/income for the year | (9.3) | (2.4) | 0.3 | (2.1) |
Employee share option scheme: value of services provided | 1.7 | 0.4 | – | 0.4 |
Dividends | – | – | (2.2) | (2.2) |
| Transfer between reserves: | ||||
– Issue of deferred shares | 10.1 | 2.6 | – | 2.6 |
– EBT contributions to Savills plc | (3.2) | (0.8) | – | (0.8) |
– Other, including employee share option scheme | – | – | (0.2) | (0.2) |
Balance at 31 December 2023 | 134.1 | 33.5 | 1.4 | 34.9 |
221
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
18. Investments and transactions continued
18.5 Non-controlling interests continued
Material non-controlling interests continued
| Non- | ||||
| controlling | ||||
| Savills IM | interest in | Other non- | Total non- | |
| Group net | Savills IM | controlling | controlling | |
| assets | Group | interests | Interests | |
| £m | £m | £m | £m | |
Balance at 1 January 2022 | 112.7 | 28.2 | 1.0 | 29.2 |
Profit for the year | 1.1 | 0.2 | 0.2 | 0.4 |
| Other comprehensive income/(loss): | ||||
Remeasurement of defined benefit pension scheme | 2.1 | 0.5 | – | 0.5 |
Tax on items taken to other comprehensive income | (0.6) | (0.2) | — | (0.2) |
Currency translation differences | 2.3 | 0.6 | – | 0.6 |
Total comprehensive income for the year | 4.9 | 1.1 | 0.2 | 1.3 |
Employee share option scheme: value of services provided | 3.0 | 0.8 | – | 0.8 |
Dividends | – | – | (0.4) | (0.4) |
| Transfer between reserves: | ||||
– Issue of deferred shares | 16.0 | 4.0 | – | 4.0 |
– EBT contributions to Savills plc | (1.8) | (0.4) | – | (0.4) |
Additions through business combinations | – | – | 2.7 | 2.7 |
Balance at 31 December 2022 | 134.8 | 33.7 | 3.5 | 37.2 |
Transactions in the previous year
In the prior year, the Group acquired 60% of the equity interest in PT CB Advisory, 70% of the equity interest in PT
Cakrawala Baswara Cemerlang and 60% of the equity interest in PT Cakrawala Baswara Indonesia. The Group also
acquired 60% of the equity interest in Absolute Maintenance Services Pte Limited and Solute Pte Limited and Simply
Affordable Homes LLP.
In 2021, the Group disposed of 25% of the shares in the Savills IM Group. In 2022, a further £0.7m of profit in relation
to this transaction was recognised in retained earnings following finalisation of costs and recycling of foreign exchange
reserves to retained earnings. The Group also received the remaining £7.9m of consideration receivable with respect to
this transaction and paid a further £0.2m in costs.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
222
Annual report and accounts 2023
| Provisional fair value to the Group | ||||
| Nash Bond | Others | Total | ||
| £m | £m | £m | ||
Non-current assets: | Property, plant and equipment | 0.1 | 0.2 | 0.3 |
Right-of-use asset | – | 0.5 | 0.5 | |
Intangible assets | – | 0.5 | 0.5 | |
Trade and other receivables | – | 0.1 | 0.1 | |
Current assets: | Contract assets | – | 0.3 | 0.3 |
Trade and other receivables | 0.5 | 0.7 | 1.2 | |
Income tax receivable | 0.1 | – | 0.1 | |
Cash and cash equivalents | 2.3 | 2.5 | 4.8 | |
Current liabilities: | Lease liabilities | – | (0.1) | (0.1) |
Trade and other payables | (1.0) | (1.5) | (2.5) | |
Income tax liabilities | – | (0.1) | (0.1) | |
Employee benefit obligations | – | (0.1) | (0.1) | |
Non-current liabilities: | Lease liabilities | – | (0.3) | (0.3) |
Deferred tax liabilities | – | (0.2) | (0.2) | |
Net assets acquired | 2.0 | 2.5 | 4.5 | |
Goodwill (provisional) | 5.0 | 5.4 | 10.4 | |
Purchase consideration | 7.0 | 7. 9 | 14.9 | |
| Consideration satisfied by: | ||||
Cash paid | 7.0 | 6.5 | 13.5 | |
Deferred consideration < 1 year | – | 0.5 | 0.5 | |
Deferred consideration > 1 year | – | 0.9 | 0.9 | |
7.0 | 7. 9 | 14.9 |
223
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
18. Investments and transactions continued
18.6 Acquisitions of subsidiaries continued
Other acquisitions
On 6 January 2023, the Group acquired 100% of the equity interest in Automotive Property Consultancy Holdings
Limited, a specialist property consultancy company dedicated to the franchised motor retail sector in the United
Kingdom. On 31 March 2023, the Group acquired 51% of the equity interest in BeLiving SRL (subsequently renamed
Savills Residential Italy SRL), a real estate company specialising in residential sales and rentals in Italy. On 31 May
2023, the Group also acquired 100% of the equity of Predibisa, Sociedade de Mediaçāo Imobiliária, Lda., a residential
and commercial real estate company based in Porto, Portugal. In addition, on 1 August 2023, the Group acquired a
55% equity interest in Site 8 Pty Limited, a retail property agency in Australia (subsequently renamed Savills Retail
Management Pty Limited).
Cash consideration for these transactions amounted to £6.5m. The remainder of the acquisition consideration relates
to deferred consideration of £1.4m payable, of which £0.5m is payable within one year of the reporting date.
Goodwill of £5.4m has been provisionally determined. Goodwill is attributable to the experience and expertise of key
staff and strong industry reputation and is not expected to be deductible for tax purposes.
Acquisition-related costs of £0.6m have been expensed as incurred to the income statement and classified within
other operating expenses.
The acquired businesses contributed revenue of £5.7m and a profit of £0.4m to the Group for the period from
acquisition to 31 December 2023. Had the acquisitions been made at the beginning of the financial year, revenue
would have been £7.7m and the profit would have been £0.5m. The impact on the Group’s overall revenue and profits
is not material.
The fair value of trade and other receivables acquired is £0.7m, £0.6m of which relates to trade receivables. The gross
contractual amount for trade receivables is £0.6m, all of which is expected to be collectible.
2022 acquisitions and prior year restatement
In the year ended 31 December 2022 the Group acquired a 60% equity interest in Absolute Maintenance Services
Pte Limited and Solute Pte Limited (‘AMS’), 100% equity interest in Pitmore 1 Limited, a 60% equity interest in Simply
Affordable Homes LLP, 100% of the equity interest in BrickByte GmbH, 100% of SRS Lease Administration LLC, a 60%
equity interest in PT CB Advisory, 70% of the equity interest in PT Cakrawala Baswara Cemerlang and a 60% equity
interest in PT Cakrawala Baswara Indonesia. The Group also acquired the trade and assets of Cureoscity Limited,
James A Baker and the trade and assets of a property management company based in Poland.
During the current year, provisional fair values relating to the acquisition of AMS were finalised, resulting in an increase
to goodwill of £0.2m and a corresponding increase in deferred consideration payable. This adjustment is considered a
measurement period adjustment in accordance with IFRS 3 and as a result the 31 December 2022 comparatives have
been restated.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
224
Annual report and accounts 2023
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
| Deferred tax assets | ||||
– Deferred tax asset to be recovered after more than 12 months | 45.8 | 37.6 | 2.1 | 2.3 |
– Deferred tax asset to be recovered within 12 months | 20.3 | 20.6 | 0.7 | 0.5 |
66.1 | 58.2 | 2.8 | 2.8 | |
| Deferred tax liabilities | ||||
– Deferred tax liability to be recovered after more than 12 months | (9.0) | (18.3) | (0.1) | (0.7) |
– Deferred tax liability to be recovered within 12 months | (1.8) | (2.9) | (0.1) | (0.2) |
(10.8) | (21.2) | (0.2) | (0.9) | |
Deferred tax asset – net | 55.3 | 37.0 | 2.6 | 1.9 |
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
At 1 January – net asset | 37.0 | 34.9 | 1.9 | 3.3 |
Amount credited/(charged) to the income statement (Note 12) | 11.6 | 5.6 | 0.3 | (0.5) |
Effect of tax rate change within the income statement (Note 12) | 0.2 | 2.1 | – | – |
| Tax credited/(charged) to other comprehensive income | ||||
– Defined benefit pension scheme – actuarial losses/(gains) | 5.8 | (1.5) | 0.3 | – |
– Defined benefit pension scheme – effect of UK tax rate change | 2.6 | (2.4) | 0.1 | (0.1) |
| Tax credited/(charged) to reserves | ||||
– Employee benefits | 0.3 | (3.0) | 0.1 | – |
– Revaluation of FVOCI investments | (0.2) | – | – | – |
– IFRS 16 initial lease recognition released to reserves | (0.2) | (0.2) | (0.1) | (0.8) |
Additions through business combinations (Note 18.6) | (0.1) | (0.4) | – | – |
Exchange movement | (1.7) | 1.9 | – | – |
At 31 December – net asset | 55.3 | 37.0 | 2.6 | 1.9 |
225
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
19. Deferred income tax continued
| Other | ||||||||
| Accelerated | employee | Share- | ||||||
| capital | Provisions | benefit | Tax | Retirement | based | |||
| allowances | and other* | obligations** | losses | benefits | Revaluations | payments | Total | |
| Deferred tax assets – Group | £m | £m | £m | £m | £m | £m | £m | £m |
Balance at 1 January 2022 | 3.2 | 12.8 | 15.4 | 4.6 | 2.3 | 0.2 | 11.5 | 50.0 |
| Reclassifications from/(to) | ||||||||
deferred tax liabilities | 0.3 | 2.4 | (1.3) | – | – | – | – | 1.4 |
Amount (charged)/credited to the income statement (Note 12) | (1.4) | 0.9 | 3.9 | 2.4 | (0.1) | – | 0.8 | 6.5 |
| Effect of tax rate change within | ||||||||
the income statement (Note 12) | 1.0 | 0.2 | 0.9 | – | – | – | – | 2.1 |
Amount credited to other comprehensive income (Note 12) | – | – | – | – | (0.7) | – | – | (0.7) |
| Amount charged to reserves | ||||||||
(Note 12) | – | (0.2) | – | – | – | – | (3.0) | (3.2) |
Exchange movement | – | 0.7 | 1.1 | 0.3 | – | – | – | 2.1 |
At 31 December 2022 | 3.1 | 16.8 | 20.0 | 7.3 | 1.5 | 0.2 | 9.3 | 58.2 |
| Reclassifications from/(to) | ||||||||
deferred tax liabilities | – | – | – | – | (7.7) | – | – | (7.7) |
Amount credited/(charged) to the income statement (Note 12) | 1.7 | 0.4 | (1.7) | 7.7 | (0.6) | – | 1.7 | 9.2 |
| Effect of tax rate change within | ||||||||
the income statement (Note 12) | – | 0.1 | 0.1 | – | – | – | – | 0.2 |
Amount credited to other comprehensive income (Note 12) | – | – | – | – | 5.8 | – | – | 5.8 |
| Effect of tax rate change within | ||||||||
| other comprehensive income | ||||||||
(Note 12) | – | – | – | – | 2.6 | – | – | 2.6 |
| Amount charged to reserves | ||||||||
(Note 12) | – | (0.2) | – | – | – | (0.2) | 0.3 | (0.1) |
| Additions through business | ||||||||
combinations (Note 18.6) | – | (0.1) | – | – | – | – | – | (0.1) |
Exchange movement | (0.1) | (0.6) | (1.1) | (0.2) | – | – | – | (2.0) |
At 31 December 2023 | 4.7 | 16.4 | 17.3 | 14.8 | 1.6 | – | 11.3 | 66.1 |
| Set-off of deferred tax liabilities | ||||||||
pursuant to set-off provisions | (8.9) | |||||||
Deferred tax asset at 31 December 2023 in the Statement of Financial Position | 57. 2 | |||||||
| Deferred tax asset at 31 December | ||||||||
| 2022 in the Statement of Financial | ||||||||
Position (net of £19.6m set-off) | 38.6 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
226
Annual report and accounts 2023
| Accelerated | |||||
| capital | Provisions | Retirement | Intangible | ||
| allowances | and other* | Benefits | assets | Total | |
| Deferred tax liabilities – Group | £m | £m | £m | £m | £m |
At 1 January 2022 | (0.2) | (0.6) | (4. 3) | (10.0) | (15.1) |
Reclassifications from/(to) deferred tax assets | – | – | – | (1.4) | (1.4) |
Tax (charged)/credited to the income statement (Note 12) | (1.0) | (0.1) | (0.2) | 0.4 | (0.9) |
Tax charged to other comprehensive income (Note 12) | – | – | (0.8) | – | (0.8) |
Effect of tax rate change within other comprehensive income (Note 12) | – | – | (2.4) | – | (2.4) |
Additions through business combinations | – | – | – | (0.3) | (0.3) |
Exchange movement | – | (0.1) | – | (0.2) | (0.3) |
At 31 December 2022 | (1.2) | (0.8) | (7.7) | (11.5) | (21.2) |
Transfers | – | (0.2) | – | 0.2 | – |
Reclassifications from/(to) deferred tax assets | – | – | 7.7 | – | 7.7 |
Tax credited/(charged) to the income statement (Note 12) | 0.4 | (0.7) | – | 2.7 | 2.4 |
Exchange movement | – | 0.1 | – | 0.2 | 0.3 |
At 31 December 2023 | (0.8) | (1.6) | – | (8.4) | 10.8 |
Set-off of deferred tax liabilities pursuant to set-off provisions | 8.9 | ||||
Deferred tax liabilities at 31 December 2023 in the Statement of Financial Position | (1.9) | ||||
Deferred tax liabilities at 31 December 2022 in the Statement of Financial Position (net of £19.6m set-off) | (1.6) | ||||
| Net deferred tax asset | |||||
At 31 December 2023 | 55.3 | ||||
At 31 December 2022 | 37.0 |
227
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
19. Deferred income tax continued
| Provisions | Retirement | Share-based | ||
| and other* | benefits | payments | Total | |
| Deferred tax assets – Company | £m | £m | £m | £m |
Balance at 1 January 2022 | 1.3 | – | 2.4 | 3.7 |
Amount credited/(charged) to the income statement (Note 12) | 0.1 | – | (0.2) | (0.1) |
Tax charged to reserves (Note 12) | (0.1) | – | (0.7) | (0.8) |
At 31 December 2022 | 1.3 | – | 1.5 | 2.8 |
Reclassifications to deferred tax liabilities | – | (0.4) | – | (0.4) |
Tax charged to other comprehensive income (Note 12) | – | 0.3 | – | 0.3 |
Effect of tax rate change within other comprehensive income (Note 12) | – | 0.1 | – | 0.1 |
Tax charged to reserves (Note 12) | (0.1) | – | 0.1 | – |
At 31 December 2023 | 1.2 | – | 1.6 | 2.8 |
Set–off of deferred tax liabilities pursuant to set-off provisions | (0.2) | |||
| Deferred tax asset at 31 December 2023 in the Statement | ||||
of Financial Position | 2.6 | |||
| Deferred tax asset at 31 December 2022 in the Statement of Financial | ||||
Position (net of £0.9m set-off) | 1.9 |
| Accelerated | |||
| capital | Retirement | ||
| allowances | Benefits | Total | |
| Deferred tax liabilities – Company | £m | £m | £m |
Balance at 1 January 2022 | (0.1) | (0.3) | (0.4) |
Tax charged to the income statement | (0.4) | (0.1) | (0.5) |
At 31 December 2022 | (0.5) | (0.4) | (0.9) |
Tax charged to the income statement | 0.3 | – | 0.3 |
Reclassifications from deferred tax assets | – | 0.4 | 0.4 |
At 31 December 2023 | (0.2) | – | (0.2) |
Set-off of deferred tax liabilities pursuant to set-off provisions | 0.2 | ||
| Deferred tax liabilities at 31 December 2023 in the Statement | |||
of Financial Position | – | ||
| Deferred tax liabilities at 31 December 2022 in the Statement of Financial | |||
Position (net of £0.9m set-off) | – | ||
| Net deferred tax asset | |||
At 31 December 2023 | 2.6 | ||
At 31 December 2022 | 1.9 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
228
Annual report and accounts 2023
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Trade receivables | 495.7 | 502.5 | – | – |
Less: loss allowance/impairment of receivables provision | (19.6) | (24.1) | – | – |
Trade receivables – net | 476.1 | 478.4 | – | – |
Amounts owed by subsidiary undertakings | – | – | 65.7 | 76.2 |
Other receivables | 72.0 | 57.8 | 2.4 | 1.5 |
Prepayments | 54.5 | 46.2 | 7.0 | 3.7 |
Accrued income | 53.8 | 60.7 | – | – |
656.4 | 643.1 | 75.1 | 81.4 |
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Sterling | 212.6 | 194.8 |
Euro | 82.2 | 89.2 |
Hong Kong dollar | 40.6 | 49.5 |
US dollar | 55.5 | 59.8 |
Australian dollar | 24.2 | 24.1 |
Chinese renminbi | 34.1 | 44.2 |
Other* | 46.5 | 40.9 |
495.7 | 502.5 |
229
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
20. Trade and other receivables continued
| More than | More than | More than | More than | |||
| 30 days | 60 days | 90 days | 180 days | |||
31 December 2023 | Current | past due | past due | past due | past due | Total |
Expected loss rate | 0.3% | 0.5% | 2.1% | 6.4% | 45.9% | 4.0% |
Gross carrying amount (£m) | 364.5 | 43.6 | 24.3 | 28.2 | 35.1 | 495.7 |
Loss allowance provision (£m) | (1.0) | (0.2) | (0.5) | (1.8) | (16.1) | (19.6) |
| More than | More than | More than | More than | |||
| 30 days | 60 days | 90 days | 180 days | |||
31 December 2022 | Current | past due | past due | past due | past due | Total |
Expected loss rate | 0.2% | 0.2% | 1.0% | 4.6% | 46.9% | 4.8% |
Gross carrying amount (£m) | 346.2 | 49.3 | 30.3 | 30.4 | 46.3 | 502.5 |
Loss allowance provision (£m) | (0.6) | (0.1) | (0.3) | (1.4) | (21.7) | (24.1) |
| 2023 | 2022 | |
| £m | £m | |
At 1 January | (24.1) | (30.3) |
Decrease/(increase) in loss allowance recognised in the income statement during the period | (0.7) | 2.1 |
Receivables written off during the year as uncollectible | 3.9 | 4.3 |
Transfers | – | 1.2 |
Foreign exchange | 1.3 | (1.4) |
At 31 December | (19.6) | (24.1) |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
230
Annual report and accounts 2023
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Trade receivables | 10.4 | 6.5 | – | – |
Other receivables | 9.8 | 6.3 | – | – |
Other assets | 38.8 | 24.3 | – | – |
Net investment in sub lease (Note 20.4) | 10.3 | 0.4 | 6.9 | 7.1 |
69.3 | 37. 5 | 6.9 | 7.1 |
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Less than a year | 2.0 | 0.2 | 1.0 | 0.9 |
Between 1 and 2 years | 1.8 | 0.2 | 1.0 | 0.9 |
Between 2 and 3 years | 1.6 | 0.2 | 1.0 | 0.9 |
Between 3 and 4 years | 1.6 | – | 1.0 | 0.9 |
Between 4 and 5 years | 1.6 | – | 1.0 | 0.9 |
Over 5 years | 4.6 | – | 4.1 | 4.7 |
Total undiscounted cash flows | 13.2 | 0.6 | 9.1 | 9.2 |
Discounting | (0.9) | – | (1.2) | (1.2) |
Carrying value of net investment in sublease | 12.3 | 0.6 | 7.9 | 8.0 |
231
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
21. Cash and cash equivalents
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Cash at bank and in hand | 416.5 | 556.7 | 118.9 | 93.6 |
Short-term bank deposits | 90.3 | 112.4 | – | – |
506.8 | 669.1 | 118.9 | 93.6 |
The carrying value of cash and cash equivalents approximates their fair value.
The effective interest rate on short-term bank deposits as at 31 December 2023 was 4.86% (2022: 3.97%); these
deposits have an average maturity of 29 days (2022: 25 days).
Cash and cash equivalents are denominated in the following currencies:
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Sterling | 224.0 | 331.3 | 118.7 | 93.5 |
Hong Kong dollar | 96.4 | 112.3 | – | – |
Euro | 55.6 | 80.2 | 0.1 | 0.1 |
Chinese renminbi | 40.0 | 36.9 | – | – |
US dollar | 11.0 | 13.8 | – | – |
Japanese yen | 12.9 | 22.9 | – | – |
Australian dollar | 7.7 | 10.6 | 0.1 | – |
South Korean won | 9.1 | 11.1 | – | – |
Singapore dollar | 11.3 | 13.4 | – | – |
Other currencies* | 38.8 | 36.6 | – | – |
506.8 | 669.1 | 118.9 | 93.6 |
* Other currencies include United Arab Emirates dirham, Omani rial, Egyptian pound, Saudi riyal, Bahrain dinar, Canadian dollar, Czech koruna, New Taiwan dollar,
Macau pataca, Thai baht, Vietnamese dong, New Zealand dollar, Indonesian rupiah, Philippine peso, Danish krone, Polish zloty, Swiss franc and Swedish krona.
22. Notional pooling arrangement – Group
For internal cash management purposes, the Group maintains a notional cash pooling arrangement with Barclays Bank
PLC, whereby credit and debit cash balances for the participating bank accounts are notionally offset. There is no
overdraft cost or charge associated with any pooled overdraft that is fully offset by pooled credit cash balances. As at
31 December 2023, the notional cash pooling arrangement included cash balances of £193.3m presented in cash and
cash equivalents (December 2022: £205.0m) and overdrafts of £192.3m (31 December 2022: £202.0m) presented in
current liabilities. This represents as at 31 December 2023 surplus pooled credit cash balances of £1.0m
(31 December 2022: surplus pooled credit cash £3.0m).
For the purpose of the Statement of Cash Flows, cash and cash equivalents net of overdrafts comprise the following:
| 31 December | 31 December | |
| 2023 | 2022 | |
| £m | £m | |
Cash and cash equivalents (see Note 21) | 506.8 | 669.1 |
Overdrafts in notional pooling arrangement | (192.3) | (202.0) |
Bank overdrafts (see Note 24) | (4.2) | (2.8) |
310.3 | 464.3 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
232
Annual report and accounts 2023
Group | Company | |||
| 2022 | ||||
| 2023 | restated* | 2023 | 2022 | |
| £m | £m | £m | £m | |
Deferred consideration (Note 23.3) | 1.1 | 2.5 | – | – |
Trade payables | 107.4 | 108.9 | 1.1 | 1.1 |
Amounts owed to subsidiary undertakings | – | – | 0.2 | – |
Other taxation and social security | 65.5 | 64.8 | 1.3 | 1.2 |
Other payables | 57.2 | 67.1 | – | – |
Accruals | 450.9 | 501.2 | 12.0 | 12.6 |
682.1 | 74 4.5 | 14.6 | 14.9 |
| 2023 | 2022 | |
| £m | £m | |
Deferred consideration (Note 23.4) | 1.4 | 0.8 |
| Accruals – relating to deferred and contingent business acquisition payments linked | ||
to employment conditions | 3.6 | 18.0 |
Other payables | 5.4 | 3.1 |
10.4 | 21.9 |
233
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
23. Trade and other payables continued
2023 | 2022 | ||||
| Non- | |||||
| Non- | contingent | Total | |||
| contingent | Total | Contingent | restated* | restated* | |
| £m | £m | £m | £m | £m | |
At 1 January | 2.5 | 2.5 | – | 3.4 | 3.4 |
| Reclassification from non-current deferred | |||||
consideration (Note 23.4) | 0.3 | 0.3 | 1.7 | 0.2 | 1.9 |
Additions through business combinations (Note 18.6) | 0.5 | 0.5 | – | 2.0 | 2.0 |
Interest unwind | – | – | – | 0.1 | 0.1 |
Deferred consideration paid | (2.1) | (2.1) | – | (3.3) | (3.3) |
Released to the income statement | – | – | (1.6) | – | (1.6) |
Exchange movement | (0.1) | (0.1) | (0.1) | 0.1 | – |
At 31 December | 1.1 | 1.1 | – | 2.5 | 2.5 |
2023 | 2022 | |||||
| Non- | Non- | |||||
| Contingent | contingent | Total | Contingent | contingent | Total | |
| £m | £m | £m | £m | £m | £m | |
At 1 January | – | 0.8 | 0.8 | 1.5 | 0.9 | 2.4 |
| Reclassification to current deferred | ||||||
consideration (Note 23.3) | – | (0.3) | (0.3) | (1.7) | (0.2) | (1.9) |
| Additions through business combinations | ||||||
(Note 18.6) | 0.7 | 0.2 | 0.9 | – | – | – |
Interest unwind | – | 0.1 | 0.1 | – | – | – |
Exchange movement | – | (0.1) | (0.1) | 0.2 | 0.1 | 0.3 |
At 31 December | 0.7 | 0.7 | 1.4 | – | 0.8 | 0.8 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
234
Annual report and accounts 2023
24. Borrowings
| 2023 | 2022 | |
| £m | £m | |
| Current | ||
Bank overdrafts | 4.2 | 2.8 |
Unsecured bank loans due within one year or on demand | 3.0 | 4.0 |
Loan notes due within one year or on demand | 0.7 | 3.8 |
7.9 | 10.6 | |
| Non-current | ||
Unsecured bank loans | 0.1 | 0.5 |
Loan notes | 150.0 | 150.0 |
Transaction costs (issuance of loan notes and RCF arrangement fees) | (0.8) | (1.4) |
149.3 | 149.1 | |
157.2 | 159.7 |
The Company does not have any borrowings as at 31 December 2023 and 31 December 2022.
The Group holds a £360.0m multi-currency revolving credit facility (‘RCF’), which includes an additional £90.0m
accordion facility, expiring in June 2026. As at 31 December 2023 none (2022: none) of the RCF was drawn.
The unsecured bank loans reflect a £0.9m working capital loan in Thailand, which is repayable on demand and
denominated in Thailand baht (2022: £0.9m), a £1.4m working capital loan in Indonesia which is repayable on demand
and denominated in Indonesian rupiah (2022: £0.3m) and £0.8m of loans in Singapore, denominated in Singapore
dollar (2022: £3.3m). The loans in Singapore include a £0.1m bank loan maturing within one year, a £0.3m factoring
facility maturing within one year and a £0.4m bridging loan, £0.3m expiring within one year and the remainder
expiring in 2025.
The loan notes due within one year or on demand reflect working capital loans in Singapore, which are repayable
within one year or on demand and denominated in Singapore dollars. These loans are payable to a non-controlling
interest holder in one of the Group’s subsidiaries.
Non-current loan notes reflect the £150.0m of long-term debt held by the Group through the issuance of 7, 10 and 12
year fixed-rate private note placements in the US institutional market, which were issued in June 2018.
Movements in borrowings are analysed as follows:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Opening amount as at 1 January | 159.7 | 150.5 |
Additional borrowings, net of transaction costs paid (including overdraft movement)* | 107.2 | 10.8 |
Repayments of borrowings | (109.9) | (5.6) |
Addition through business combination | – | 3.2 |
Amortisation of transaction costs | 0.6 | 0.6 |
Foreign exchange | (0.4) | 0.2 |
Closing amount as at 31 December | 157.2 | 159.7 |
* 2023 includes a £1.5m increase in overdraft balances within additional borrowings. 2022 includes £1.5m increase in overdraft balances and £0.3m of transaction
costs paid within additional borrowings.
235
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
24. Borrowings continued
The carrying value of the Group’s borrowings exposed to interest rate changes at the reporting date is:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Less than 1 year | 6.9 | 7.7 |
6.9 | 7.7 |
The Group’s remaining borrowings are fixed rate instruments and therefore excluded from the above analysis.
The effective interest rates at the reporting date were as follows:
| Group | ||
| 2023 | 2022 | |
| % | % | |
Bank overdrafts | 5.96 | 4.38 |
Bank loans | 6.95 | 3.72 |
Loan notes | 3.15 | 3.16 |
The carrying amounts of borrowings are materially approximate to their fair value, with the exception of the Group’s
long-term fixed rate private note placements. The fair value of these loan notes as at 31 December 2023 is £135.6m
(31 December 2022: £131.5m). The difference between the fair value and the book value is not recognised in the
reported results for the year. The fair value has been calculated based upon a discounted cash flow valuation utilising
observable market rates of borrowing that are comparable to the remaining length of the loan notes. The valuation
technique falls within Level 2 of the fair value hierarchy in IFRS 13.
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Sterling | 153.4 | 151.2 |
Indonesian rupiah | 1.4 | – |
Singapore dollar | 1.5 | 7.1 |
Other | 0.9 | 1.4 |
157.2 | 159.7 |
The Group has the following undrawn borrowing facilities:
| Group | ||||||
2023 | 2022 | |||||
| Fixed | Floating | Total | Fixed | Floating | Total | |
| £m | £m | £m | £m | £m | £m | |
Expiring within 1 year or on demand | 3.0 | 58.8 | 61.8 | 1.1 | 64.9 | 66.0 |
Expiring between 1 and 5 years | 0.2 | 360.0 | 360.2 | 0.2 | 360.0 | 360.2 |
3.2 | 418.8 | 422.0 | 1.3 | 424.9 | 426.2 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
236
Annual report and accounts 2023
25. Lease liabilities
The statement of financial position shows the following amount relating to lease liabilities:
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
At 1 January | 277.6 | 285.0 | 58.8 | 64.5 |
Additions | 32.2 | 31.7 | 7.5 | – |
Lease modifications | 8.5 | – | – | – |
Additions through business combinations (Note 18.6) | 0.4 | 2.7 | – | – |
Transfers from accruals | 0.3 | – | – | – |
Disposal of leases | (2.6) | (4.4) | – | – |
Repayments of lease liabilities | (63.9) | (60.5) | (8.2) | (7.7 ) |
Unwinding of discount | 9.2 | 9.0 | 2.1 | 2.0 |
Exchange movement | (7. 5) | 14.1 | – | – |
Closing amount as at 31 December | 254.2 | 277.6 | 60.2 | 58.8 |
Current | 52.9 | 53.2 | 6.0 | 5.2 |
Non-current | 201.3 | 224.4 | 54.2 | 53.6 |
For the Group, cash outflows with respect to leases, which includes short-term, low-value and variable lease payments,
totalled £65.1m (2022: £62.8m). Refer to Note 7.1 for information on the amount charged to the income statement with
respect to short-term, low-value and variable lease payments.
For the Company, cash outflows with respect to leases, which includes short-term lease payments, totalled £8.6m
(2022: £8.0m).
26. Provisions
| Professional | ||||||
| indemnity | Dilapidation | Restructuring | Other | Group | ||
| claims | provisions | provision | provisions | total | Company | |
| £m | £m | £m | £m | £m | £m | |
At 1 January 2023 | 12.5 | 10.9 | 0.3 | 6.1 | 29.8 | 2.4 |
Provided during the year | 8.7 | 2.3 | 13.5 | 4.3 | 28.8 | 0.1 |
Transfer from accruals | – | 0.2 | – | – | 0.2 | – |
Utilised during the year | (6.8) | – | (4.5) | (1.1) | (12.4) | – |
Released during the year | (1.7) | (0.2) | (0.3) | (2.7) | (4.9) | – |
Exchange movement | (0.1) | (0.2) | – | (0.1) | (0.4) | – |
Closing amount as at 31 December 2023 | 12.6 | 13.0 | 9.0 | 6.5 | 41.1 | 2.5 |
Current | 1.6 | 1.7 | 9.0 | 4.9 | 17.2 | – |
Non-current | 11.0 | 11.3 | – | 1.6 | 23.9 | 2.5 |
| Professional | ||||||
| indemnity | Dilapidation | Restructuring | Other | Group | ||
| claims | provisions | provision | provisions | total | Company | |
| 2022 | £m | £m | £m | £m | £m | £m |
Current | 1.6 | 2.6 | 0.3 | 4.7 | 9.2 | – |
Non-current | 10.9 | 8.3 | – | 1.4 | 20.6 | 2.4 |
Total | 12.5 | 10.9 | 0.3 | 6.1 | 29.8 | 2.4 |
237
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
26. Provisions continued
26.1 Provisions continued
(a) Professional indemnity claims
These arise from various legal actions, proceedings and other claims that are pending against the Group and are based
on management’s best estimates of the most likely outcome, taking into account the opinions of legal counsel. The
nature of the amounts provided in respect of legal actions, proceedings and other claims is such that the extent and
timing of cash flows can be difficult to estimate and the ultimate liability may vary from the amounts provided. The
non-current portion of these provisions is expected to be utilised within the next two to five years.
A separate receivable from insurers in relation to professional indemnity claims is recognised to the extent it is virtually
certain of being received. The provision and insurance asset are presented in the accounts as follows:
| 2023 | 2022 | |
| Group | £m | £m |
Provisions – current | 1.6 | 1.6 |
Provisions – non-current | 11.0 | 10.9 |
Trade and other receivables – non-current | (7.0) | (3.7) |
5.6 | 8.8 |
(b) Dilapidation provisions
The Group is required to perform dilapidation repairs and in certain instances restore properties to agreed specifications
prior to the properties being vacated at the end of their lease term. These amounts are based on management’s best
estimates of repair and restoration costs at a future date and therefore a degree of uncertainty exists over the value
of future cash outflows, given that these are subject to repair and restoration cost price fluctuations and the extent
of repairs to be completed at the end of the lease term. The majority of the non-current portion of these provisions
is expected to be utilised within the next two to 14 years.
(c) Restructuring provision
This provision comprises primarily termination payments to employees affected by restructuring.
26.2 Employee benefit obligations
In addition to the defined benefit obligations pension scheme disclosed in Note 10.2, the following are included in
employee benefit obligations:
| Total | |
| Group | £m |
At 1 January 2023 | 42.9 |
Provided during the year | 9.0 |
Additions through business combinations (Note 18.6) | 0.1 |
Actuarial movement on employee benefit schemes | 0.1 |
Utilised during the year | (6.2) |
Exchange movement | (1.9) |
At 31 December 2023 | 44.0 |
The above provisions relate to holiday pay and long service leave in the UK, Asia Pacific, Continental Europe and the
Middle East. Profit shares are included within accruals (Note 23).
The Company had £0.2m of employee benefit obligations as at 31 December 2023 (2022: £0.2m), relating to holiday
pay and long service leave.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
238
Annual report and accounts 2023
The above employee benefit obligations have been analysed between current and non-current as follows:
| Group | ||
| 2023 | 2022 | |
| £m | £m | |
Current | 18.5 | 17.7 |
Non-current | 25.5 | 25.2 |
44.0 | 42.9 |
27. Share capital and premium – Group and Company
| 2023 | 2022 | 2023 | 2022 | |
| Authorised and allotted | Number of shares* | Number of shares* | £m | £m |
| Ordinary shares of 2.5p each: | ||||
Authorised | 202,000,000 | 202,000,000 | 5.1 | 5.1 |
Issued, called up and fully paid | 144,389,919 | 144,353,048 | 3.6 | 3.6 |
Movement in issued, called-up and fully paid share capital:
2023 | 2022 | |||||
| Share | Share | Share | Share | |||
| Number | capital | premium | Number | capital | premium | |
| of shares* | £m | £m | of shares* | £m | £m | |
At 1 January | 144,353,048 | 3.6 | 104.9 | 144,203,211 | 3.6 | 104.4 |
| Issued to direct participants on exercise | ||||||
of options under the Sharesave Scheme | 4,322 | – | – | 68,739 | – | 0.5 |
Issued to direct participants under the Performance Share Plan | 32,549 | – | – | 81,098 | – | – |
At 31 December | 144,389,919 | 3.6 | 104.9 | 144,353,048 | 3.6 | 104.9 |
* Number of shares are stated before the impact of the shares held by the EBT and Rabbi Trust.
Each issued, called-up and fully paid ordinary share of 2.5p is a voting share in the capital of the Company, is entitled
to participate in the profits of the Company and on winding-up is entitled to participate in the assets of the Company.
At the Annual General Meeting (‘AGM’) held on 17 May 2023, the Shareholders gave the Company authority, subject
to stated conditions, to purchase for cancellation up to 14,435,333 of its own ordinary shares (AGM held on 12 May
2022: 14,423,136). Such authority remains valid until the conclusion of the next AGM or 16 August 2024, whichever
is the earlier.
As at 31 December 2023, the EBT held 7,615,420 shares (2022: 6,780,308 shares) and the Rabbi Trust held 1,502,155
shares (2022: 1,914,869). These shares are held by the Group as ‘treasury shares’. Any voting or other similar decisions
relating to these shares are taken by the trustees of the EBT and the Rabbi Trust, who may take account of any
recommendation of the Company. The EBT waives all of its dividend entitlement. For further details of the EBT and
the Rabbi Trust refer to Note 2.22. A reconciliation of the movement in treasury shares for the year ended 31 December
is shown below:
| 31 December | 31 December | |
| Number of treasury shares | 2023 | 2022 |
At 1 January | 8,695,177 | 6,084,503 |
Shares acquired | 2,844,065 | 4,894,511 |
Shares reissued | (2,421,667) | (2,283,837) |
At 31 December | 9,117,575 | 8,695,177 |
239
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
28. Share-based payment
The Group operates four equity-settled share-based payment arrangements, namely the Sharesave Scheme, the
Performance Share Plan (‘PSP’), the Deferred Share Plan (‘DSP’) and the Deferred Share Bonus Plan (‘DSBP’). The
Group recognised total expenses relating to equity-settled share-based payment transactions of £28.8m in 2023
(2022: £30.4m). Of the total share-based payments charge, £1.3m (2022: £0.2m) relates to the Sharesave Scheme,
£10.3m (2022: £11.1m) relates to the DSP, £16.9m (2022: £18.5m) relates to the DSBP and £0.3m (2022: £0.6m) relates
to the PSP.
The Company recognised total expenses relating to equity-settled share-based payment transactions of £2.4m in 2023
(2022: £2.9m). Of the total share-based payments charge, £2.0m (2022: £2.3m) relates to the DSBP, £0.1m relates to
the Sharesave Scheme and £0.3m (2022: £0.6m) relates to the PSP.
Refer to the Remuneration Report for details of the PSP, pages 147 to 149. Refer to the Directors’ Report for details of
the Sharesave Scheme, page 154. The DSBP has been established to provide employees with an element of the annual
performance-related profit share which is deferred and awarded as shares in Savills plc. DSBP awards have a deferral
period of between three and five years. The DSP provides certain employees with an award over Savills plc shares for
purposes including recruitment and retention. Current awards under the DSP have a deferral period of between one
and seven years. In addition to continued employment, DSP awards may be granted with performance conditions
attaching, primarily relating to financial targets.
28.1 Movements in share schemes
| Sharesave | PSP | DSP | DSBP | |
| 2023 number of awards (‘000) | awards | awards | awards | awards |
Outstanding at 1 January | 2,290 | 543 | 3,682 | 5,520 |
Granted | – | 141 | 1,366 | 2,399 |
Exercised | (4) | (33) | (1,171) | (1,058) |
Cancelled | (92) | – | – | – |
Forfeited/lapsed | (103) | (10) | (107) | (200) |
Outstanding at 31 December | 2,091 | 641 | 3,770 | 6,661 |
| Exercisable at 31 December | ||||
Weighted average exercise price for awards outstanding at the beginning of the year, exercised in the year and forfeited/lapsed | ||||
in the year (pence) | 757.0 | – | – | – |
Weighted average exercise price for awards granted and outstanding at end of the year (pence) | 757.0 | – | – | – |
Weighted average remaining contractual life (years) | 1.8 | 2.4 | 1.9 | 1.9 |
| Weighted average share price at the date of exercise for awards | ||||
exercised in the year (pence) | 890.8 | 976.6 | 927.7 | 962.6 |
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
240
Annual report and accounts 2023
| Sharesave | PSP | DSP | DSBP | |
| 2022 number of awards (‘000) | awards | awards | awards | awards |
Outstanding at 1 January | 102 | 635 | 3,304 | 3,926 |
Granted | 2,304 | 122 | 1,606 | 2,714 |
Exercised | (69) | (71) | (1,107) | (1,034) |
Cancelled | (12) | – | – | – |
Forfeited/lapsed | (35) | (143) | (121) | (86) |
Outstanding at 31 December | 2,290 | 543 | 3,682 | 5,520 |
| Exercisable at 31 December | ||||
Weighted average exercise price for awards outstanding at the beginning of the year, exercised in the year and forfeited/lapsed | ||||
in the year (pence) | 640.0 | – | – | – |
| Weighted average exercise price for awards granted and outstanding | ||||
at end of the year (pence) | 757.0 | – | – | – |
Weighted average remaining contractual life (years) | 2.8 | 2.7 | 1.7 | 2.0 |
| Weighted average share price at the date of exercise for awards | ||||
exercised in the year (pence) | 1,214.0 | 1,095.3 | 1,053.0 | 1,082.0 |
28.2 Fair value of options
For all the DSP and DSBP schemes the fair value of awards is the closing share price before award date. The Actuarial
Binomial model of actuaries Lane Clark & Peacock LLP is used to fair value awards granted under the PSP and
Sharesave schemes.
The key inputs to determine the fair value of the awards granted under the PSP scheme during 2023 are shown below.
Performance Share Plan: Awards in the year ended 31 December 2023 | 21 April 2023 |
Share price at grant date (pence) | 980.0 |
Risk-free rate | 3.7% |
Volatility of Savills plc share price | 33% per annum |
Employee turnover | Zero |
The expected volatility is measured over the three years prior to the date of grant to match the vesting period of the
award. The risk-free rate is the yield on a zero coupon UK government bond at each grant date, with term based on
the expected life of the option or award.
The fair values of options granted in the period are shown below.
Grant | Grant date | Deferred period | Fair value pence |
DSBP 2023 | 21 April 2023 | 3 – 4 years | 952.0 |
DSBP 2023 | 31 May 2023 | 4 years | 907. 5 |
DSP 2023 | 21 April 2023 | 1 – 5 years | 952.0 |
DSP 2023 | 18 September 2023 | 3 – 4 years | 929.0 |
DSP 2023 | 31 May 2023 | 1 – 7 years | 907.5 |
DSP 2023 | 30 September | 1 – 5 years | 865.6 |
DSP 2023 | 6 November 2023 | 1 – 5 years | 835.5 |
PSP 2023 (EPS/ROCE) | 21 April 2023 | 5 years | 977.5 |
PSP 2023 (TSR) | 21 April 2023 | 5 years | 580.1 |
241
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
29. Share premium, retained earnings and other reserves
The share premium account represents the premium on shares issued. This reserve is non-distributable.
The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration. Refer to Note 28 for further details of
these plans.
The capital reserve includes mandatory minimum required capital reserves for certain regulated entities within the
Investment Management business. These reserves are restricted with respect to dividend payments and distributions
and are required to be treated separately to regular retained earnings.
The capital redemption reserve includes the nominal value of shares bought back by the Company. This reserve
is non-distributable.
The merger relief reserve arose from the acquisition of Studley Inc (2014 acquisition) and records the premium value
of the shares issued as part of the consideration for the acquisition of this business. This reserve is non-distributable.
The foreign exchange reserve primarily records exchange differences arising from the translation of the balance sheets
of foreign currency denominated subsidiaries.
The revaluation reserve primarily records fair value movements on the Group’s equity investments held at FVOCI
(see Note 18.2). This reserve is non-distributable.
| Attributable to owners of the parent | |||||||||
| Share- | Capital | ||||||||
| based | Profit | Total | redemption | Merger | Foreign | Total | |||
| payments | Treasury | and loss | retained | and capital | relief | exchange | Revaluation | other | |
| reserve | shares | account* | earnings* | reserve | reserve | reserve | reserve | reserves | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Balance at 1 January 2023 | 51.7 | (91.9) | 587.0 | 546.8 | 2.2 | 34.9 | 98.5 | (22.8) | 112.8 |
| Profit attributable to owners | |||||||||
of the Company | – | – | 40.8 | 40.8 | – | – | – | – | – |
| Other comprehensive (loss)/ | |||||||||
income | – | – | (16.2) | (16.2) | – | – | (26.6) | 0.6 | (26.0) |
| Employee share option | |||||||||
| scheme: | |||||||||
– Value of services provided | 28.8 | – | – | 28.8 | – | – | – | – | – |
| – Tax on employee share | |||||||||
option schemes | 0.5 | – | – | 0.5 | – | – | – | – | – |
– Exercise of options | (21.2) | 25.6 | (4.4) | – | – | – | – | – | – |
| – Exercise of options: tax | |||||||||
| on employee share option | |||||||||
schemes | (0.2) | – | 0.2 | – | – | – | – | – | – |
Tax on items taken to reserves | – | – | (0.4) | (0.4) | – | – | – | – | – |
Purchase of treasury shares | – | (26.3) | – | (26.3) | – | – | – | – | – |
Dividends | – | – | (48.8) | (48.8) | – | – | – | – | – |
Transfer between reserves | 0.7 | – | (10.4) | (9.7) | (3.0) | 3.0 | – | 7.7 | 7.7 |
| Fair value of derivative | |||||||||
financial instrument | – | – | (0.6) | (0.6) | – | – | – | – | – |
Balance at 31 December 2023 | 60.3 | (92.6) | 547.8 | 515.5 | (0.8) | 37.9 | 71.9 | (14.5) | 94.5 |
* Included within profit and loss account is tax on items taken directly to equity (Note 12) as disclosed above.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
242
Annual report and accounts 2023
| Attributable to owners of the parent | |||||||||
| Share- | Capital | ||||||||
| based | Profit | Total | redemption | Merger | Foreign | Total | |||
| payments | Treasury | and loss | retained | and capital | relief | exchange | Revaluation | Other | |
| reserve | shares | account* | earnings* | reserve | reserve | reserve | reserve | reserves | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Balance at 1 January 2022 | 48.3 | (68.8) | 560.5 | 540.0 | 2.0 | 34.9 | 51.6 | (12.3) | 76.2 |
| Profit attributable to owners | |||||||||
of the Company | – | – | 119.4 | 119.4 | – | – | – | – | – |
Other comprehensive income/(loss) | – | – | 2.4 | 2.4 | 0.2 | – | 47. 3 | (10.9) | 36.6 |
| Employee share option | |||||||||
| scheme: | |||||||||
– Value of services provided | 29.6 | – | – | 29.6 | – | – | – | – | – |
| – Tax on employee share | |||||||||
option schemes | (2.6) | – | – | (2.6) | – | – | – | – | – |
– Exercise of options | (21.0) | 25.9 | (4.9) | – | – | – | – | – | – |
| – Exercise of options: tax | |||||||||
| on employee share option | |||||||||
schemes | (2.6) | – | 2.6 | – | – | – | – | – | – |
Tax on items taken to reserves | – | – | 0.3 | 0.3 | |||||
Purchase of treasury shares | – | (49.0) | – | (49.0) | – | – | – | – | – |
Dividends | – | – | (85.5) | (85.5) | – | – | – | – | – |
Transfer between reserves | – | – | (4.0) | (4.0) | – | – | – | 0.4 | 0.4 |
| Fair value of derivative | |||||||||
financial instrument | – | – | (4.5) | (4.5) | – | – | – | – | – |
Transactions with non-controlling interests | – | – | 0.7 | 0.7 | – | – | (0.4) | – | (0.4) |
Balance at 31 December 2022 | 51.7 | (91.9) | 587.0 | 546.8 | 2.2 | 34.9 | 98.5 | (22.8) | 112.8 |
243
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
31. Cash generated from operations
Group | Company | |||
| 2023 | 2022 | 2023 | 2022 | |
| £m | £m | £m | £m | |
Profit for the year | 39.5 | 119.8 | 66.1 | 78.8 |
| Adjustments for: | ||||
Income tax (Note 12) | 15.9 | 34.1 | (2.7) | (2.3) |
Depreciation (Note 16 and 17) | 69.6 | 65.8 | 6.2 | 6.4 |
Amortisation of intangible assets (Note 15) | 15.8 | 16.9 | 0.5 | 2.0 |
Fair value gain on derivative financial instrument and FVPL investments | (2.1) | (0.1) | – | – |
(Gain)/loss on disposal of property, plant and equipment, intangible assets and leases | (4.0) | 1.1 | 0.3 | (3.0) |
Impairment of property, plant and equipment and goodwill | 3.9 | 0.8 | – | – |
Net finance (income)/cost (Note 11) | (12.1) | 4.3 | (5.2) | – |
Share of post-tax profit from joint ventures and associates (Note 18.1) | (10.2) | (12.1) | – | – |
Dividends from other parties | (0.2) | (0.2) | – | – |
Increase/(decrease) in employee and retirement obligations | 2.5 | 2.6 | – | (0.1) |
| Exchange movement and fair value movements on financial | ||||
instruments in operating activities | 0.5 | 0.6 | – | – |
Increase/(decrease) in provisions | 11.2 | (4.7) | – | – |
Increase in insurance reimbursement asset | (3.4) | – | – | – |
Dividend income from subsidiary | – | – | (75.0) | (79.5) |
Non-operational income – excess distribution from subsidiary with respect to share-based payment funding | – | – | – | (9.8) |
Charge for share-based compensation (Note 28) | 28.8 | 30.4 | 2.4 | 2.9 |
Operating cash flows before movements in working capital | 155.7 | 259.3 | (7.4) | (4.6) |
(Increase)/decrease in trade and other receivables and contract assets | (45.5) | (7.3) | (14.3) | 6.1 |
Decrease in trade and other payables and contract liabilities | (61.0) | (41.1) | (0.3) | (8.3) |
Cash generated from/(used in) operations | 49.2 | 210.9 | (22.0) | (6.8) |
Foreign exchange movements resulted in a £20.1m decrease in current and non-current trade and other
receivables (2022: £37.3m increase) and a £21.3m decrease in current and non-current trade and other payables
(2022: £43.8m increase).
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
244
Annual report and accounts 2023
32. Analysis of liabilities arising from financing activities
| Non-cash | |||||||
| movements | Movements | ||||||
| recognised | through | ||||||
| in the | Other | business | |||||
| At | Cash | Income | non-cash | combinations | Exchange | At | |
| Group | 1 January | flows | Statement | movements | and disposals | movement | 31 December |
| 2023 | £m | £m | £m | £m | £m | £m | £m |
Bank loans | (4.5) | 1.0 | – | – | – | 0.4 | (3.1) |
Loan notes | (153.8) | 3.2 | – | – | – | (0.1) | (150.7) |
Transaction costs | 1.4 | – | (0.6) | – | – | – | 0.8 |
Lease liabilities | (277.6) | 63.9 | (9.2) | (38.4) | (0.5) | 7.5 | (254.3) |
Liabilities arising from financing activities | (434.5) | 68.1 | (9.8) | (38.4) | (0.5) | 7. 8 | (407.3) |
| Non-cash | |||||||
| movements | Movements | ||||||
| recognised | through | ||||||
| in the | Other | business | |||||
| At | Cash | Income | non-cash | combinations | Exchange | At | |
| Group | 1 January | flows | Statement | movements | and disposals | movement | 31 December |
| 2022 | £m | £m | £m | £m | £m | £m | £m |
Bank loans | (0.9) | (0.3) | – | – | (3.2) | (0.1) | (4. 5) |
Loan notes | (150.0) | (3.8) | – | – | – | – | (153.8) |
Transaction costs | 1.6 | 0.4 | (0.6) | – | – | – | 1.4 |
Lease liabilities | (285.0) | 60.5 | (9.0) | (27. 3) | (2.7) | (14.1) | (277.6) |
Liabilities arising from financing activities | (434 . 3) | 56.8 | (9.6) | (27.3) | (5.9) | (14.2) | (434.5) |
Non-cash movements recognised in the income statement represent amortisation of transaction costs and
unwinding of discount on lease liabilities. Other non-cash movements to lease liabilities represent new leases and
disposal of leases.
The part of the lease payment that represents cash payments for the principal portion of the lease liability is presented
as a cash flow resulting from financing activities (2023: £54.7m, 2022: £51.4m). The part of the lease payment that
represents the interest portion of the lease liability is presented as an operating cash flow, consistent with the
presentation of the Group’s loan and bank interest payments (2023: £9.2m, 2022: £9.0m).
| Non-cash | |||||
| movements | |||||
| recognised | |||||
| in the | Other | ||||
| At | Cash | income | non-cash | At | |
| Company | 1 January | flows | statement | movements | 31 December |
| 2023 | £m | £m | £m | £m | £m |
Lease liabilities | (58.8) | 8.2 | (2.1) | (7.5) | (60.2) |
Liabilities arising from financing activities | (58.8) | 8.2 | (2.1) | (7.5) | (60.2) |
| Non-cash | ||||
| movements | ||||
| recognised | ||||
| in the | ||||
| At | Cash | income | At | |
| Company | 1 January | flows | statement | 31 December |
| 2022 | £m | £m | £m | £m |
Lease liabilities | (64.5) | 7.7 | (2.0) | (58.8) |
Liabilities arising from financing activities | (64.5) | 7.7 | (2.0) | (58.8) |
245
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
32. Analysis of liabilities arising from financing activities continued
Non-cash movements recognised in the income statement represent amortisation of transaction costs and
unwinding of discount on lease liabilities.
The part of the lease payment that represents cash payments for the principal portion of the lease liability is
presented as a cash flow resulting from financing activities (2023: £6.1m, 2022: £5.7m). The part of the lease payment
that represents the interest portion of the lease liability is presented as an operating cash flow, consistent with the
presentation of the Group’s loan and bank interest payments (2023: £2.1m, 2022: £2.0m).
The Company does not have any borrowings as at 31 December 2023 and 31 December 2022.
33. Related party transactions
Other than disclosed below and the information provided within the Remuneration Report and Note 9.3 (Key
management compensation), there were no significant related-party transactions during the year.
(a) Loans to related parties
Refer to Note 20.1 for details of loans made to joint ventures and associates.
(b) Transactions with associates and joint ventures
There were no material transactions with associates and joint ventures in the year (2022: no material transactions),
with the exception of transactions and balances disclosed in Notes 20.1 and 23.1.
(c) Company related-party transactions
The Company provided corporate function services to its subsidiaries at an arm’s length value of £32.6m
(2022: £31.0m).
Dividends of £75.0m from subsidiaries were recognised during the year (2022: £79.5m). Interest income of £2.5m
from subsidiaries on loans was recognised during the year (2022: £1.0m), with £0.1m of accrued intercompany interest
income at the end of the year (2022: £nil). In the prior year, the Company received distributions from its subsidiaries
with respect to the funding of the EBT in excess of the contribution made by the Company to date with respect to the
IFRS 2 share based payment contribution to subsidiaries, this excess of £9.8m was recognised within profit and loss
during the prior year (2023: £nil).
Amounts outstanding to and from subsidiaries as at 31 December 2023 are disclosed in Notes 20 and 23.
34. Post-balance sheet events
In February 2024, Samsung Life served notice on the call option to purchase a further 4% in the Savills IM Holdings
Limited group, which will increase their total shareholding to 29%. This transaction is expected to complete towards
the end of March 2024, with the Group due to receive £11.3m of proceeds.
There have been no other events that require adjustment to the Financial Statements or are considered to have
a material impact on the understanding of the Group’s and Company’s current financial position.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
246
Annual report and accounts 2023
35. Group – Investments
In accordance with Section 409 of the Companies Act 2006 a full list of subsidiaries, partnerships, associates and joint
ventures, the registered office and the effective percentage of equity owned by the Group, as at 31 December 2023,
are disclosed below. Unless otherwise stated, all subsidiary undertakings are consolidated into the Group financial
statements and share capital wholly comprises ordinary shares which are indirectly held by the Company.
Fully owned subsidiary
Country of
incorporation Registered office
Incoll Group Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Incoll Management Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Moores Cost Consulting Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (ACT) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (Aust) Holdings Pty Limited (ii) Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (Aust) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (NSW) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (QLD) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (SA) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (TAS) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (VIC) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills (WA) Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Capital Advisory Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Occupier Services Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Project Management
Pty Limited
Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Project Services (SA)
Pty Limited
Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Valuations Pty Limited Australia Level 25, 1 Farrer Place, Sydney, NSW 2000
Savills Sales W.L.L. Bahrain Flat/shop: 2802, Building: 2504, Road: 2832,
Block: 428, Area: Al Seef, Manama
Savills Middle East Co. W.L.L. Bahrain Flat/shop: 2804, Building: 2504, Road: 2832,
Block: 428, Area: Al Seef, Manama
Savills Canada, Inc Canada 181 Bay Street – Suite 200, Toronto, ON M5J 2T3
Savills Inc Canada 181 Bay Street – Suite 200, Toronto, ON M5J 2T3
Savills Services Inc Canada 181 Bay Street – Suite 200, Toronto, ON M5J 2T3
Guardian Property Services
(Shanghai) Company Limited
China Room 220, Block 1, No.100 Jinyu Road,
Pu Dong, Shanghai
Savills Business Information
Technology (Shenzhen) Limited
China Unit 201, A Tower, No. 1 QianWan Yi Road,
Qianhai Shengan Cooperation District, Shenzhen
Savills Property Services (Beijing)
Company Limited
China 2101 East Tower, Twin Towers, B-12
Jianguomenwai Avenue, Chaoyang District,
Beijing 100022
Savills Property Services (Chengdu)
Company Limited
China Room 2106, Yanlord Landmark, No. 1 Section 2,
Renmin South Road, Chengdu 610016
Savills Property Services (Chongqing)
Company Limited
China Room 1601, 16th floor, GuoHua Financial Center,
No. 9 JuXianYan Square, JiangBeiZui, Chongqing
Savills Property Services (Guangzhou)
Company Limited
China Room 1301, R&F Center, No.10 Hua Xia Road,
Zhujiang New Town, Guangzhou 510623
Savills Property Services (Hainan)
Limited
China Room 9A, Baifang Building, Baifang Square,
No. 105 Binhai Avenue, Longhua District, Haikou
247
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Fully owned subsidiary
Country of
incorporation Registered office
Savills Property Services (Hengqin)
Limited
China Room 105-19233, No. 6 Baohua Road, Hengqin
new area, Zhuhai
Savills Property Services (Shanghai)
Company Limited
China Unit D, Room 62,Block 3, No.227, Ru Shan
Road, Shanghai
Savills Property Services (Tianjin)
Company Limited
China Unit 4607, Tianjin World Financial Center,
No. 2 Dagu North Road, Xiaobailou Street,
Heping District, Tianjin
Savills Property Services (Wuhan)
Company Limited
China Unit 08-10, 27th Floor, CITIC PACIFIC Mansion,
No.1627 Zhongshan Avenue, Jiang’an District
Savills Property Services (Zhuhai)
Company Limited
China Room 2204, 22/F, Tower B, China Overseas
Building, Midtown, No. 2021 Jiuzhou West
Avenue, Zhuhai
Savills Corporate Appraisal &
Advisory Limited
China Unit 01, 21/F, East Tower, Twin Towers, B-12
Jianguomenwai Avenue, Chaoyang District,
Beijing 100022
Savills Real Estate Valuation
(Guangzhou) Company Limited
China Room 2105, R&F Center, No.10 Hua Xia Road,
Zhujiang New Town, Guangzhou 510623
Savills Technology Innovation Services
(Shanghai) Company Limited
China Room 205, floor 2 west, No. 707 zhangyang
road, China (Shanghai) Pilot Free Trade Zone
Savills Valuation and Professional
Services (BJ) Limited
China Unit 07, 21/F, East Tower, Twin Towers,
B-12 Jianguomenwai Avenue, Chaoyang District,
Beijing 100022
Savills Valuation and Professional
Services (GZ) Limited
China Room 2105, R&F Centre, No.10 Hua Xia Road,
Zhujiang New Town, Guangzhou
Shenzhen Guardian Property
Management Limited
China Unit 03, 9/F, China Resources Tower, No.2666,
Keyuan South Road, Nanshan District,
Shenzhen, 518000
Swan Property Services (Beijing)
Company Limited
China 2101 East Tower, Twin Towers, B-12
Jianguomenwai Avenue, Chaoyang District,
Beijing 100022
Savills Engineering Consulting
Shanghai Company Limited
China Room 205, floor 2 west, No. 707 Zhangyang
Road, China (Shanghai) Pilot Free Trade Zone
Savills CZ s.r.o. Czech Republic Florentinum, Building C, Na Florenci 2116/15,
Prague 1, 110 00
Cluttons Egypt Consulting JSC Egypt Building 17, Street 210, Al Maadi, Cairo
Savills Egypt Consulting JSC Egypt Building 17, Street 210, Maadi, Cairo
Savills Valuation SAS France 21 Boulevard Haussmann 75009, Paris
BRICKBYTE GmbH Germany Rosental 4, 80331 München
Savills Advisory Services GmbH Germany Taunusanlage 18, 60325 Frankfurt am Main
Savills Immobilien Beratungs GmbH Germany Taunusanlage 18, 60325 Frankfurt am Main
Savills Immobilien Beteiligungs –
GmbH
Germany Taunusanlage 18, 60325 Frankfurt am Main
Savills Immobilien Management GmbH Germany Taunusanlage 18, 60325 Frankfurt am Main
Savills Property Management
Deutschland GmbH
Germany Bonner Straße 209, 50968 Köln
Savills Facility Management
Deutschland GmbH
Germany Bonner Straße 209, 50968 Köln
35. Group – Investments continued
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
248
Annual report and accounts 2023
Fully owned subsidiary
Country of
incorporation Registered office
Martel Maides Limited Guernsey Royal Terrace, Glategny Esplanade,
St Peter Port, GY1 2HN
Parkes & Associates Limited Guernsey First Floor, Harbour Court, Les Amballes,
St Peter Port, GY1 1WU
Savills Channel Islands Limited Guernsey Royal Terrace, Glategny Esplanade,
St Peter Port, GY1 2HN
Absolute Result Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Bridgewater Management Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
BTHK Property Management Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Champion Insurance and Computer
Services Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Dominion Office Centre Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills IT Solutions Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Express Engineering Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Express Maintenance Services Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Gateway Contractors Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Greenscape Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
GRVM Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guard Able Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Care Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Management Services
Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Mandarin Management
Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Partners Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Property Agencies Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Property Management
Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Integrated Management
Services Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian ProTech Facilities
Management Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Guardian Quality Management Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Hip Kwan Property Management
Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Kenda Services Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Kwik Park Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Mount Link Services Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Quartey Properties Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills (China) Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills (Hong Kong) Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Asia Pacific Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
249
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Fully owned subsidiary
Country of
incorporation Registered office
Savills Building Services Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Design Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Engineering Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Guardian (Holdings) Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills India Holding Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Indonesia Holding Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Management Services Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Philippines Holding Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Project Consultancy Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Property Management Holdings
Limited
Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Property Management Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Realty Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Regional Services Limited Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Savills Property Services Limited Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
Savills Valuation and Professional
Services Limited
Hong Kong Room 1208, 1111 King’s Road, Taikoo Shing
Savills Valuation and Professional
Services (China) Limited
Hong Kong Room 1208, 1111 King’s Road, Taikoo Shing
Security and Safety Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Swan Hygiene Services Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Swan Pest Control Services Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Tarrayon Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
The Peninsular Centre Retailers
Association Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills Prestige Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills Smart Management Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills Smart Parking Limited Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Savills-One Management Services
Limited
Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
PT Property Connection Indonesia Indonesia Panin Tower – Senayan City, 16/F,
Jl.Asia Afrika Lot.19, Jakarta 10270
PT Savills Consultants Indonesia Indonesia Panin Tower – Senayan City, 16/F,
Jl.Asia Afrika Lot.19, Jakarta 10270
Actium (ii) Ireland 33 Molesworth Street, Dublin 2
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
250
Annual report and accounts 2023
Fully owned subsidiary
Country of
incorporation Registered office
Anateo Limited (ii) Ireland 33 Molesworth Street, Dublin 2
Savills Advisory Services (Ireland)
Limited
Ireland 33 Molesworth Street, Dublin 2
Savills Commercial (Ireland) Limited (ii) Ireland 33 Molesworth Street, Dublin 2
Savills Management Resource
Ireland Limited
Ireland 33 Molesworth Street, Dublin 2
Savills Residential (Ireland) Limited Ireland 33 Molesworth Street, Dublin 2
Savills Italia SRL Italy Via Manzoni, 37 – 20121 Milano
Savills Italy SRL (EUR) Italy Via Manzoni, 37 – 20121 Milano
Savills Asset Advisory Company
Limited
Japan TOHO Hibiya Promenade Building 8F,
1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006
Savills Japan Company Limited Japan TOHO Hibiya Promenade Building 8F,
1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006
Savills Japan Valuation GK Japan TOHO Hibiya Promenade Building 8F,
1-5-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006
Savills plc 1992 Employee
Benefit Trust
(vi) Jersey Third Floor Cambridge House, Le Truchot,
St Peter Port, GY1 1WD
1992 EBT Holdings Limited (vi) Jersey 50 La Colomberie, St. Helier, JE2 4QB
Savills (Jersey) Limited Jersey 19 Halkett Place, St Helier, JE2 4WG
Savills (Macau) Limited Macau Suite 1309-1310, 13/F Macau Landmark,
555 Avenida da Amizade
Savills Project Consultancy
(Macau) Limited
Macau Suite 1309-1310, 13/F Macau Landmark,
555 Avenida da Amizade
Savills Property Management
(Macau) Limited
Macau Suite 1309-1310, 13/F Macau Landmark,
555 Avenida da Amizade
Savills (Myanmar) Limited Myanmar No. 8, Unit 8-A, Centerpoint Towers, No. 65,
Corner of Sule Pagoda Road & Merchant Street,
Kyauktada Township, Yangon
Savills Asset and Property
Management BV
Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Agency BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Building & Project
Consultancy BV
Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Consultancy BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Holdings BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Investments BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Nederland Holdings BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills Retail BV Netherlands Viñoly Building, Claude Debussylaan 48,
Amsterdam 1082 MD
Savills (NZ) Limited New Zealand Level 6, 41 Shortland Street, Auckland Central,
Auckland, 1010
251
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Fully owned subsidiary
Country of
incorporation Registered office
FPD Management Services
Philippines Inc
Philippines 12/F., Times Plaza Building, United Nations
Avenue corner Taft Avenue, Ermita, Manila 1000
Savills Sp Z o.o. Poland Al. Jana Pawła II 22, Warszawa
Savills Portugal – Consultoria, Lda. Portugal Avenida Miguel Bombarda 4, 1000-208 Lisboa
Savills Portugal – Mediaçao
Imobiliaria Lda
Portugal Avenida Miguel Bombarda 4, 1000-208 Lisboa
Predibisa – Sociedade de Mediacao
Imobiliaria Lda
Portugal R. José Gomes Ferreira 117
Savills for Business Services SPC Saudi Arabia PO Box 17, Riyadh, Post Code: 11411
iProcurePro Pte Limited Singapore 30 Cecil Street #20-03 Prudential Tower, 049712
Savills (SEA) Pte Limited (ii) Singapore 30 Cecil Street #20-03 Prudential Tower, 049712
Savills (Singapore) Pte Limited Singapore 30 Cecil Street #20-03 Prudential Tower, 049712
Savills Property Management
Pte Limited
Singapore 20 Martin Road #03-01/02 Seng Kee Building,
239070
Savills Residential Pte Limited Singapore 30 Cecil Street #20-03 Prudential Tower, 049712
Savills Valuation & Professional
Services (S) Pte Limited
Singapore 30 Cecil Street #20-03 Prudential Tower, 049712
Savills Korea Advisors Realty
Company Limited
South Korea 13/F Seoul Finance Center, 136 Sejong-daero
Jung-gu, Seoul
Savills Korea Company Limited South Korea 13/F Seoul Finance Center, 136 Sejong-daero
Jung-gu, Seoul
Savills Diseno y Construccion
Barcelona SAU
Spain Avda. Diagonal 609-615, Barcelona
Savills Arquitectura SAU Spain Paseo de la Castellana, 81 28046 Madrid
Savills Barcelona SAU Spain Avda. Diagonal 609-615, Barcelona
Savills Consultores Real Estate SAU Spain Paseo de la Castellana, 81 28046 Madrid
Savills Corporate Finance SAU Spain Paseo de la Castellana, 81 28046 Madrid
Savills RE Spain SAU Spain Paseo de la Castellana, 81 28046 Madrid
Savills Valoraciones y Tasaciones SA Spain Paseo de la Castellana, 81 28046 Madrid
Savills Consultores Inmobiliarios SA Spain Paseo de la Castellana, 81 28046 Madrid
Loudden Bygg-och
FastighetsserviceAB
Sweden Box 6317, 102 35 Stockholm
Savills Förvaltning AB Sweden Sergels Torg 12 111 57 Stockholm
Savills Sweden AB Sweden Sergels Torg 12 111 57 Stockholm
Savills Sweden Investment AB Sweden Sergels Torg 12, 111 57 Stockholm
Savills (Taiwan) Limited Taipei 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, 110
Savills Residential Services
(Taiwan) Limited
Taipei 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, 110
Savills Valuation & Professional
Services (Taiwan)
(iii) Taipei 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, 110
Savills (Thailand) Limited Thailand 990 Abdulrahim Place Building, 26/F, Rama
IV Road, Silom Subdistrict, Bang Rak District,
Bangkok
Savills Services (Thailand) Limited Thailand 990 Abdulrahim Place Building, 26/F, Rama
IV Road, Silom Subdistrict, Bang Rak District,
Bangkok
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
252
Annual report and accounts 2023
Fully owned subsidiary
Country of
incorporation Registered office
Savills Real Estate LLC (Dubai) (iv) United Arab Emirates 22nd Floor, Arenco Tower, Sheikh Zayed Road,
PO Box 3087 Dubai
Savills Real Estate LLC (Sharjah) (iv) United Arab Emirates 2702C, Al Marzouqi Towers, King Faisal Street
Automotive Property Consultancy
Holdings Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Automotive Property Consultancy
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
B Bids Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Buckleys Estate Agents Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Chesterfield & Co (Rentals) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Cordea Savills Investments Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Cureoscity Technologies Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Currell Commercial Limited United Kingdom 9 Bonhill Street, London, EC2A 4DJ
Currell Residential Limited United Kingdom 9 Bonhill Street, London, EC2A 4DJ
Grosvenor Hill Ventures Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Hepher Dixon Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Holden Matthews Estate Agents
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Humphriss & Ryde Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Jago Dean PR Limited United Kingdom 33 Margaret Street, London, W1G 0JD
JP Case & Co Property Services
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
LIBRA Housing Advisory Services
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Liverpool ONE Management Services
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Mansfield Elstob Main Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Moor House Management Services
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Nash Bond Limited United Kingdom 33 Margaret Street, London, W1G 0JD
PCA Holdings Limited United Kingdom 33 Margaret Street, London, W1G 0JD
PCA Management Consultants Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Portnalls Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Prime Purchase Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Rickitt Grant & Company Limited United Kingdom 33 Margaret Street, London, W1G 0JD
S F Securities Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills (Europe) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills (L&P) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills (NI) Limited United Kingdom 2nd Floor, Longbridge House, 16-24 Waring
Street, Belfast, BT1 2DX
Savills (Overseas Holdings) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills (UK) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Advisory Services (L&P)
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Advisory Services Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Asia Pacific Holding Limited United Kingdom 33 Margaret Street, London, W1G 0JD
253
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Fully owned subsidiary
Country of
incorporation Registered office
Savills Asset Warehouse 1 Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Co-Investment Holdings
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Capital Advisors Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Commercial (Leeds) Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Commercial Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Finance Holdings plc United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Financial Services Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Holding Company Limited (i) United Kingdom 33 Margaret Street, London, W1G 0JD
Savills India Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Italy Holding Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills KSA Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Lending Solutions Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Management Resources
Limited
United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Management Resources
Northern Ireland Limited
United Kingdom 2nd Floor, Longbridge House, 16-24 Waring
Street, Belfast, BT1 2DX
Savills ME Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Middle East Holdings Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Telecom Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Savills Trust Company Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Smith Woolley Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Smiths Gore Limited United Kingdom 33 Margaret Street, London, W1G 0JD
The Currell Group Limited United Kingdom 9 Bonhill Street, London, EC2A 4DJ
The London Planning Practice Limited United Kingdom 33 Margaret Street, London, W1G 0JD
Wellington Holdings Limited United Kingdom 33 Margaret Street, London, W1G 0JD
BTR Capital Advisors I, LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
BTR Capital Advisors II, Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
BTR Capital Advisors III, Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
Gravitas Lease Audit Services LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Gravitas Real Estate Solutions LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Kelly, Legan & Gerard Inc United States 398 Park Avenue – 11th FL, New York, NY 10022
Savills Dallas Lease
Administration LLC
United States 15660 N Dallas Pkway, Ste 1200 Dallas, TX 75248
Macro Consultants LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Savills (L&P) Inc United States Unex House, 132–134 Hills Road, Cambridge
CB28PA
Savills (ME) LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Savills America Limited United States 399 Park Avenue – 11/F, New York, NY 10022
Savills Capital Markets LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Savills Gravitas Real Estate
Solutions LLC
United States 399 Park Avenue – 11th FL, New York, NY 10022
Savills Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
254
Annual report and accounts 2023
Fully owned subsidiary
Country of
incorporation Registered office
Savills Rabbi Trust (vi) United States 570 Lexington Ave, New York, NY 10022
Savills Occupier Services Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
SSOC, LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
Studley International, Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
Studley Advisors, Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
SVS (GA) Inc United States 399 Park Avenue – 11th FL, New York, NY 10022
SVS Stone LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
T3 Reallty Advisors West Corp United States 399 Park Avenue – 11th FL, New York, NY 10022
T3 Reallty Advisors, LLC United States 399 Park Avenue – 11th FL, New York, NY 10022
The Great Studley Stamp Company United States 399 Park Avenue – 11th FL, New York, NY 10022
Savills Vietnam Company Limited Vietnam 21/F, Tòa Tây- Lotte Center Hanoi, 54 Lieu Giai
Street, Cong Vi Ward, Ba Dinh District,
Hanoi City
SVVN Price Valuation Limited Liability
Company
Vietnam 17 Fl., Vincom Centre Building, 72 Le Thanh Ton
Str., Ben Nghe Ward, Dist 1, Ho Chi Minh City
Subsidiaries of which the Group
owns less than 100% % owned
Country of
incorporation Registered office
Savills Investment Management
(Australia) Pty Limited
75 Australia Level 36, Gateway, 1 Macquarie Place,
Sydney NSW 2000
Savills Retail Management Pty
Limited
(vii) 55 Australia Level 25, 1 Farrer Place, Sydney,
NSW 2000
Savills Belux Group SA 99.9 Belgium Avenue Louise 81, 1050 Brussels,
Belgium
DRC UK Whole Loan Fund (Feeder)
(GP) Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
DRC UK Whole Loan Fund (GP)
Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
European Real Estate Debt Fund II
(GP) Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
European Real Estate Senior Debt
(GP 1) Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
European Real Estate Senior Debt
(GP 2) Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
European Real Estate Senior Debt
(GP 3) Limited
75 Cayman Islands 94 Solaris Avenue, Camana Bay, PO
Box 1348, Grand Cayman, KY1-1108
Savills IM Japan Residential Fund II
Feeder GP Limited
75 Cayman Islands c/o Walkers Corporate Limited,
Cayman Corporate Centre, 27 Hospital
Road, George Town, Grand Cayman
KY1-9008
Savills Property Services (Shenzhen)
Company Limited
85 China Unit 02, 9/F, China Resources Tower,
No.2666, Keyuan South Road, Nanshan
District, Shenzhen, 518000,
Savills Egypt 55 Egypt Building 17, Street 210, Maadi, Cairo
Savills Investment Management SAS 75 France 54–56 Avenue Hoche, 75008 Paris
Savills SA 99.97 France 21 Boulevard Haussmann 75009, Paris
Savills Fund Management GmbH 70.5 Germany Rotfeder-Ring 7, D-60327
Frankfurt am Main
255
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Subsidiaries of which the Group
owns less than 100% % owned
Country of
incorporation Registered office
Savills Fund Management Holding
AG
75 Germany Rotfeder-Ring 7, D-60327
Frankfurt am Main
Savills IM Berlin Südkreuz GmbH
& Co. KG
75 Germany Rotfeder-Ring 7, 60327 Frankfurt
am Main
Savills IM Beteilugungs GmbH 75 Germany Rotfeder-Ring 7, 60327 Frankfurt
am Main
Savills Investment Management
(Germany) GmbH
75 Germany Sonnenstrasse 19, Munich
Savills Investment Management
(KVG) GmbH
67.43 Germany Rotfeder-Ring 7, D-60327
Frankfurt am Main
Jiayi Savills Property Services
Limited
51 Hong Kong 23/F, Two Exchange Square,
8 Connaught Place, Central
Merx HK Limited 60 Hong Kong Rooms 1202-04, 12/F, 1111 King's Road,
Taikoo Shing
Savills Billion Property Management
Limited
80 Hong Kong Rooms 805-813, 8/F, 1111 King's Road,
Taikoo Shing
Savills Investment Management
Asia Limited
75 Hong Kong Level 54, Hopewell Centre, 183 Queen’s
Road East
The Aurora Management Services
Limited
80 Hong Kong Rooms 805-813, 8/F, 1111 King's Road,
Taikoo Shing
Savills Vignature Property
Management Limited
70 Hong Kong Rooms 805-813, 8/F, 1111 King's Road,
Taikoo Shing
Savills The Vision Property
Management Limited
60 Hong Kong Rooms 805-813, 8/F, 1111 King's Road,
Taikoo Shing
PT Savills Advisory Services 70 Indonesia Panin Tower – Senayan City, 16/F,
Jl.Asia Afrika Lot.19, Jakarta 10270
PT Savills Management Services 60 Indonesia Panin Tower – Senayan City, 16/F,
Jl.Asia Afrika Lot.19, Jakarta 10270
PT CB Advisory 60 Indonesia Panin Tower – Senayan City, 16/F,
Jl.Asia Afrika Lot.19, Jakarta 10270
Savills Investment Management
SGR SpA
75 Italy Via San Paolo 7, 20121 Milan
Savills Residential Italy SRL (vii) 51 Italy Via di Montoro, 8 – 00186 Roma (RM)
JVF GP GK 68.16 Japan c/o Akasaka International Accounting
Office 2-10-5 Akasaka, Minato-ku,
Tokyo, Japan
Savills Investment
Architecture Design GK
75 Japan 3F BPR Place Kamiyacho, 1-11-9
Azabudai, 1 Chome-11 Azabudai,
Minato-ku, Tokyo 106-0041
SIM Real Estate GK 75 Japan 3F BPR Place Kamiyacho, 1-11-9
Azabudai, 1 Chome-11 Azabudai,
Minato-ku, Tokyo 106-0041
DRC European Real Estate
Debt Fund III (GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
DRC European Real Estate
Debt Fund III (SLI GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
DRC European Real Estate
Debt Fund IV (GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
DRC European Real Estate Debt
Fund IV (SLI) LP
75 Jersey 4th Floor, Ensign House, 29 Seaton
Place, St. Helier, JE2 3QL
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
256
Annual report and accounts 2023
Subsidiaries of which the Group
owns less than 100% % owned
Country of
incorporation Registered office
DRC Evergreen Whole Loan
(GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
DRC UK Whole Loan Fund II
(GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
European Real Estate Senior Debt
4 (GP) Limited
75 Jersey The Forum, 4 Grenville Street,
St Helier, JE2 4UF
European Real Estate Senior Debt
Fund (GP 7) Limited
75 Jersey IFC 5, St Helier, JE1 1ST
Prime London Residential
Development Jersey GP Limited
75 Jersey 3rd Floor Walker House, 28-34 Hill
Street, St Helier, JE4 8PN
Prime London Residential
Development Jersey II GP Limited
75 Jersey 3rd Floor Walker House, 28-34 Hill
Street, St Helier, JE4 8PN
Savills IM Single Asset Vehicle
Fund ICC
75 Jersey 3rd Floor, Liberation House,
Castle Street, St Helier,
Channel Islands JE1 2LH
Savills Investment Management
(Jersey) Limited
75 Jersey 3rd Floor, Walker House, 28-34 Hill St,
St Helier, JE4 8PN
DRC European Real Estate Debt
Fund IV (GP II) Sarl
75 Luxembourg 6H Route de Treves, Senningerberg
L-2633
DRC SIM Australia Real Estate Debt
Fund I (GP) Sarl
75 Luxembourg 10, rue C.M. Spoo
European Real Estate Senior Debt 5
(GP) Sarl
75 Luxembourg Airport Center Luxembourg 5,
Heienhaff, L-1736 Senningerberg
European Real Estate Senior Debt 6
(GP) Sarl
75 Luxembourg Airport Center Luxembourg 5,
Heienhaff, L-1736 Senningerberg
European Real Estate Senior Debt 8
Sarl
75 Luxembourg 6H Route de Treves, Senningerberg
L-2633
Savills IM European Fund V GP Sarl 75 Luxembourg 10, rue C.M. Spoo
Savills IM Japan Residential
Evergreen Feeder Fund A (GP) Sarl
75 Luxembourg 10, rue C.M. Spoo
Savills Investment Management
(Luxembourg) Sàrl
67.43 Luxembourg 10, rue C.M. Spoo
Merx Macau Limited 60 Macau Avenida da Praia Grande, nº 665,
Edifício Great Will, 16º andar,
Unidade A, em Macau
Merx Malaysia Sdn. Bhd. 60 Malaysia Unit 1336, Suite-A, Lobby 7, Block A,
Damansara Intan No 1, Jalan SS20/27,
47400 Petaling Jaya, Selangor,
Malaysia
Savills Investment Management BV 75 Netherlands Vida Building, Kabelweg 57, 1014 BA
Amsterdam
Savills & Partners LLC 65 Oman Hatat Complex Suite 30-36,
Ground Floor, P O Box 1475, Ruwi
Savills Investment Management
SpZ o.o.
75 Poland Gdanski Business Center – building B
(3rd floor), Inflancka 4 st.,
00-189 Warsaw
Absolute Maintenance Services
Pte Limited
60 Singapore 13 Kaki Bukit Place Absolute
Maintenance Building S416191
Merx Holdings (SG) Pte Limited 60 Singapore 168 Robinson Road, #12 Capital Tower,
068912
Merx Construction Management
(MCM) Pte Limited
60 Singapore 168 Robinson Road, #12 Capital Tower,
068912
257
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Subsidiaries of which the Group
owns less than 100% % owned
Country of
incorporation Registered office
Savills Investment Management
Pte. Limited
75 Singapore 83 Amoy Street, 01-01, 069960
Savills IM Japan Value Fund II GP Pte
Limited
75 Singapore 61 Robinson Road, #16-02, Robinson
Centre, 068893
Savills IM Japan Residential Fund II
GP Pte Limited
75 Singapore 61 Robinson Road, #16-02, Robinson
Centre, 068893
Solute Pte Limited 60 Singapore 13 Kaki Bukit Place, Absolute
Maintenance Building, S416191
Savills Investment Management SLU 75 Spain Paseo de la Castellana, 81 28046
Madrid
Savills Investment Management AB 75 Sweden Regeringsgatan 48, 5th Floor,
111 56 Stockholm
Cordea Savills SLP GP Limited 75 United Kingdom Wemyss House, 8 Wemyss Place,
Edinburgh, EH3 6DH
Cordea Savills SLP II LP 75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Cordea Savills SLP LP 75 United Kingdom Wemyss House, 3 Wemyss Place,
Edinburgh, EH3 6DH
DRC Savills Investment
Management LLP
75 United Kingdom 4th Floor, 6 Duke Street St James's,
London, SW1Y 6BN
Liverpool ONE Management
Company Limited
50 United Kingdom 33 Margaret Street, London, W1G 0JD
Savills IM Residential UK Limited 75 United Kingdom 33 Margaret Street, London, W1G 0JD
Prime London Residential
Development Co-Investment GP LLP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Prime London Residential
Development Co-Investment II
GP LLP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Prime London Residential
Development Co-Investment II LP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Prime London Residential
Development Co-Investment LP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Prime London Residential
Development GP LLP
75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Prime London Residential
Development II GP LLP
75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
SAH Investments Holdings Limited 45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes 2 LP 45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM SLP II GP LLP 75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, EH3 9WJ
Savills IM Dawn GP Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM Euro V Co-Investment GP
LLP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, Scotland, EH3 9WJ
Savills IM Euro V Co-Investment LP 75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, Scotland, EH3 9WJ
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
258
Annual report and accounts 2023
Subsidiaries of which the Group
owns less than 100% % owned
Country of
incorporation Registered office
Savills IM Holdings Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM Investco Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM Investments Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM JVF II Co-Investment GP
LLP
75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, Scotland, EH3 9WJ
Savills IM JVF II Co-Investment LP 75 United Kingdom 50 Lothian Road, Festival Square,
Edinburgh, Scotland, EH3 9WJ
Savills IM SLP General Partner LLP 75 United Kingdom Wemyss House, 8 Wemyss Place,
Edinburgh, United Kingdom, EH3 6DH
Savills IM SLP III GP LLP 75 United Kingdom Citypoint, 65 Haymarket Terrace,
Edinburgh, Scotland, EH12 5HD
Savills IM SLP III LP 75 United Kingdom Citypoint, 65 Haymarket Terrace,
Edinburgh, Scotland, EH12 5HD
Savills IM UK One Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM UK Property Ventures No.1
GP Limited
75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills IM UK Two Limited 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills Investment Management (UK)
Limited
75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills Investment Management LLP 75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Savills Investment Management
Overseas Holdings Limited
75 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes 1 GP
Limited
45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes 1 LP 45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes 2 GP
Limited
45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes GP LLP 45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes LLP 45 United Kingdom 33 Margaret Street, London, UK,
W1G 0JD
Simply Affordable Homes RP Limited 45 United Kingdom 33 Margaret Street, London,
UK, W1G 0JD
Stratland Management Limited 75 United Kingdom 33 Margaret Street, London,
UK, W1G 0JD
DRC SIM US Holdings LLC 75 United States Corporation Service Company,
251 Little Falls Drives, Wilmington,
Delaware
SGDN Limited 51 United Kingdom Stuart House, City Road, Peterborough,
PE1 1QF
Savills Investment Management Inc 75 United States 251 Little Falls Drive, Wilmington,
Delaware
259
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Joint Ventures % owned
Country of
incorporation Registered office
Shanghai No.1 and FPD Savills
Property Management Company
Limited
51 China Building No1, 3rd Floor, No.400,
Fangchun Road, Pudong District,
Shanghai
Zhuhai Hengqin Savills Assets
Operation Management Company
Limited
51 China Room 105-1460, No. 6 Baohua Road,
Hengqin New Area, Zhuhai
Chuangtuo Savills Property
Management (Shanghai) Company
Limited
50 China Room 408, No.481 Zhengli Road,
Yangpu District, Shanghai
Beijing Baiwang Savills Real Estate
Company Limited
49 China Room 501, 5F, Block 2, No. 2 South
Yongjie Road, Haidian District, Beijing
Foshan Meizhi & Savills Property
Management Company Limited
40 China Unit 2404, Building No. 4, Midea
Fortune Plaza, 1 Chende Road, Shunde
District, Foshan
Gohigh Savills (Shanghai) Property
Management Company Limited
49 China Room 203D, 2/F, No. 21, Lane 596,
Middle Yanan Road, Jingan District,
Shanghai
Guangzhou Nansi & Savills Property
Management Company Limited
49 China Room 1304, Feng Ze Dong Road
No.106, Nan Sha Area, Guang Zhou
Shanghai Qihui Savills Property
Services Company Limited
49 China Rm 548, 9F, No. 583 Lingmu Road,
Xuhui District, Shanghai
Beijing Haizhi Savills Property
ManagementCompany Limited
30 China Zone B, 6/F, Tower B, No.18 Zhong
Guan Cun Avenue, Haidian District,
Beijing
Beijing Hongyuan Savills Property
Management Company Limited
40 China Unit 104, F1,Building 4, No.2 Jinsui
Avenue, Shunyi District, Beijing
Savills BM Property Services
Company Limited
40 China Room 115, No.53, Lane 749, Middle
Tianmu Road, Zhabei District, Shanghai
Shenzhen Qianhai Savills Property
ServicesCompany Limited
40 China Unit 201,A Tower, No.1, QianWan Road,
Qianhai Shengan Cooperation District,
Shenzhen
Shanghai Kuntin Savills Property
Management Company Limited
40 China Room 252, 2F, No. 309 Meilong Road,
Xuhui District, Shanghai
Shanghai Dobe Savills Property
Management Company Limited
35 China Room 111, 1F, Building 11, No. 2447
Jiaotong Road, Putuo District,
Shanghai
Daisy Savills Property Management
(Beijing) Company Limited
35 China Unit 702, Tower 2, Office Building,
7/F, No. 18 Jianguomennei Avenue,
Chaoyang District, Beijing
Suzhou Industrial Park Hengtai Savills
Property Management Company
Limited
35 China Unit 303-304, Moon Bay International
Business Center, 9 Cuiwei Avenue,
Suzhou Industrial Park, Suzhou
Suzhou Jiarun Savills Property
ManagementCompany Limited
34 China Unit 1211, 12th Floor, Room 101, Building
1, Xinneng Business Plaza, No. 99 Si’an
Street, Suzhou Industrial Park
Beijing Yintai Savills Property
ManagementCompany Limited
33 China Unit 402C, 401, 4/F, Building 3, No. 2
Jianguomenwai Avenue, Chaoyang
District, Beijing
Beijing BHG Savills Retail & Property
Management Company Limited
24.5 China Room 107, Block 1, No 208, Lane 4,
North Xiangyun Road, Daxing District,
Beijing
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
260
Annual report and accounts 2023
Joint Ventures % owned
Country of
incorporation Registered office
Beijing Oriental Savills Asset
Management Company Limited
30 China Unit 303, 3/F No, 9 West Street
Wangfujing, Dongcheng District,
Beijing
Chengdu Shu Du Savills Property
Services Company Limited
65 China Unit 212, 2/F, No.1 Building, No.333
Jiqingsan Rd, Chengdu High-tech
District, Chengdu
Nanjing Smart Science Technology
Park & Savills Property Management
Company Limited
30 China Room 468, Floor 4, Building 9,
Xingzhihui Business Garden, No. 19,
Xinghuo Road, Jiangbei New District,
Nanjing, 210008
Shanghai South Hongqiao & Savills
Property Management Company
Limited
49 China No.5 Building, No. 277 Huqingping
Highway, Minhang District, Shanghai
Savills Raycom Property
Management (Beijing) Company
Limited
30 China Unit B1-08, No.2 South Road Ke Xue
Yan, Haidian District, Beijing
Shanghai Landsea Savills Property
Management Company Limited
49 China 9F, No. 583 Lingling Road, Xuhui
District, Shanghai
Shanghai Poly Savills Property
Management Company Limited
30 China Unit 01, 20/F, South Tower, No.528
South Pu Dong Road, Pu Dong,
Shanghai
Shanxi Zhidi Savills Property Services
Company Limited
30 China 4/F, Block 3, No.42 Xing Shan Temple,
Xi’an
Anlian Savills Property Management
(Shenzhen) Limited
25.5 China Unit B02(b), 19/F, Anlian Plaza,
No.4018, Jintian Road, Futian District,
Shenzhen
COSCO Savills Property
Development Company Limited
25 China Unit M, 7th Floor, No.720 Pudong
Avenue, Pudong District, Shanghai
Beijing Financial Street Savills
Property Management Company
Limited
20 China B1/F, Tong Tai Building, 33 Financial
Street, West District, Beijing
Beijing Zhong Bao Savills Property
Management Company Limited
10 China 603 China Life Tower, 16 Chao Wai
Street, Chaoyang District, Beijing
Tianjin TEDA Savills Property
Services Company Limited
10 China B2/F, Zone A1, Teda MSD, No.56
Second Avenue, Economy &
Technology Development Zone, Tianjin
Xi’an Qujiang Savills Property
Services Company Limited
30 China Room 1109-1, 11th Floor, No.2 Building
of Huashang Culture & Media Center,
No. 3001 Yanxiang Road, Xujiang New
District, Xi’an
Beijing Hualian Fashion Savills
Property Management Company
Limited
24.5 China Rm.304, Block1, Land 4, No.208 North
Xiangyun Road, Daxing District, Beijing
Heng Fu Savills Property
Management (Shanghai) Company
Limited
49 China Building A1, No. 57 Fuxing West Road,
Xuhui District, Shanghai
Jintai Savills Property Management
(Shanghai) Company Limited
35 China Rm 702, 6F, No.938 Jinshajiang Road,
Putuo District, Shanghai
Shanghai Construction Savills
Property Management Company
Limited
49 China Rm 1023, 10F, No. 390-408 East Beijing
Road, HuangPu District, Shanghai
Suzhou Caohu Science and
Technology Industry Services
Company Limited
34 China Rm.2201, Floor 22, Caohu Building,
No.1 Qianjing Road, Caohu Street,
Suzhou
261
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Joint Ventures % owned
Country of
incorporation Registered office
Lippo-Savills Property Management
Limited
50 Hong Kong Room 2301, 23/F, Tower One, Lippo
Centre, 89 Queensway
Guardian Management (Hong Kong)
Limited
50 Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Greenmile Ventures Limited 50 Hong Kong Vistra Corporate Services Centre,
Wickhams Cay II, Road Town, Tortola,
VG1110, British Virgin Islands
Greenwalls Gateway Limited 50 Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Skywise Technology & Innovation
Company Limited
50 Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
QF Savills Property Management
Limited
50 Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
Taikoo Shing
G.E.S. Holdings Limited 50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
G.E.S. Limited 50 Macau Alameda Dr. Carlos D’Assumpcao, No.
181 – 187, Edf. Kong Fai Com. 7/F, K – P
Crescendo Environmental Services
Limited
50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
Crescendo Property Services Limited 50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
East Sun Cleaning Services Limited 50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
Express Engineering (Macau) Limited 50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
Jade Forist Limited 50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
Winnerway Security Guards
Company Limited
50 Macau Alameda Dr. Carlos D’Assumpcao,
No. 181 – 187, Edf. Kong Fai Com. 7/F,
K – P
Savills (Johor) Sdn Bhd (ii) 49 Malaysia Upper Penthouse, Wisma RKT, No. 2
Jalan Raja Abdullah, Off Jalan Sultan
Ismail, 50300 Kuala Lumpur
Savills (KL) Sdn Bhd (ii) 49 Malaysia Upper Penthouse, Wisma RKT, No. 2
Jalan Raja Abdullah, Off Jalan Sultan
Ismail, 50300 Kuala Lumpur
Savills (Malaysia) Sdn Bhd (ii) 49 Malaysia Upper Penthouse, Wisma RKT, No. 2
Jalan Raja Abdullah, Off Jalan Sultan
Ismail, 50300 Kuala Lumpur
Savills (Penang) Sdn Bhd (ii) 49 Malaysia Upper Penthouse, Wisma RKT, No. 2
Jalan Raja Abdullah, Off Jalan Sultan
Ismail, 50300 Kuala Lumpur
Savills (Project Management)
SdnBhd
(ii) 49 Malaysia Upper Penthouse, Wisma RKT, No. 2
Jalan Raja Abdullah, Off Jalan Sultan
Ismail, 50300 Kuala Lumpur
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
262
Annual report and accounts 2023
Associates % owned
Country of
incorporation Registered office
SAS – Riviera Estates 51 France 11 Avenue Jean Medecin, 06000, Nice
Savills Germany Residential GmbH 40 Germany Friedrichstrabe 95, 10117 Berlin
KSH Guardian Property
Management Limited
50 Hong Kong 7/F, 1111 King’s Road, Taikoo Shing
Yuen Sang Property Management
Company Limited
50 Hong Kong Room 2501, 25/F, Alexandra House, 18 Chater
Road, Central
Savills Taiping Property
Management Limited
45 Hong Kong Rooms 805-813, 8/F, 1111 King’s Road,
TaikooShing
Guardian Home Limited 40 Hong Kong Shop No. 301, 3rd Floor, Chun Shek Shopping
Centre, Chun Shek Estate, 1 Shing Tin Street,
Shatin, New Territories
Hengli Savills Property
Management Limited
49 Hong Kong Unit 1806-08, Tower Two, Lippo Centre,
89Queensway
Glory Crest Limited 40 Hong Kong Shop No. 301, 3rd Floor, Chun Shek Shopping
Centre, Chun Shek Estate, 1 Shing Tin Street,
Shatin, New Territories
Guardian Home (Chun Shek)
Limited
40 Hong Kong Shop No. 301, 3rd Floor, Chun Shek Shopping
Centre, Chun Shek Estate, 1 Shing Tin Street,
Shatin, New Territories
Cordea Nichani India Advisers
Private Limited
18.75 India Ground Floor Front, 19 Kumarakrupa Road,
Bangalore 560001
LCA Core Sdn Bhd 40 Malaysia 18-2, Jalan PJU 5/4, Dataran Sunway, Kota
Damansara, 47810 Petaling Jaya, Selangor
Lucia Sdn Bhd 40 Malaysia 18-2, Jalan PJU 5/4, Dataran Sunway, Kota
Damansara, 47810 Petaling Jaya, Selangor
Rootcorp Ranganatha Limited 18.75 Mauritius 4th Floor, Raffles Tower, 19 Cybercity, Ebene
Monaco Real Estates SARL 51 Monaco 10 Ter Boulevard Princesse Charlotte
Really Pte Limited (ii) 32.7 Singapore 70 Shenton Way #09-12 EON Shenton S 079118
H Investment Pte Limited 40.5 Singapore 3 Bishan Place #05-01 CPF Bishan
Building S 579838
Huttons Asia Pte Limited 40.5 Singapore 3 Bishan Place #05-01 CPF Bishan
Building S 579838
Huttons Capital Pte Limited 40.5 Singapore 3 Bishan Place #05-01 CPF Bishan
Building S 579838
Huttons International Pte Limited 40.5 Singapore 3 Bishan Place #05-01 CPF Bishan
Building S 579838
Huttons Pte Limited 33.8 Singapore 3 Bishan Place #05-01 CPF Bishan
Building S 579838
DRCSIM US LLC 38.25 United States Corporation Service Company, 251 Little Falls
Drives, Wilmington, Delaware
Vucity Limited 30.39 United Kingdom 10 Orange Street, Haymarket,
London, WC2H 7DQ
Realplus Joint Stock Company 30 Vietnam House SH11-12, Floor 2, Q2 Thao Dien Residence,
No. 21 Vo Truong Toan Street, Thao Dien Ward,
Thu Duc City, Ho Chi Minh City
263
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Fully owned entity
Country of
incorporation Registered office
Liffey Valley Management Limited (v) Ireland 33 Molesworth Street, Dublin 2
Mahon Point Management Limited (v) Ireland 33 Molesworth Street, Dublin 2
White Water (Newbridge) Limited (v) Ireland 33 Molesworth Street, Dublin 2
White Water Management Limited (v) Ireland 33 Molesworth Street, Dublin 2
White Water Residential DAC (Designated Activity Company) (v) Ireland 33 Molesworth Street, Dublin 2
2GCSSO Limited (v) Ireland 33 Molesworth Street, Dublin 2
(i) Directly owned by Savills plc.
(ii) Both ordinary and redeemable shares owned by the Group.
(iii) Partnership interest.
(iv) Economic interest/part economic interest.
(v) The Group does not control these entities (as defined by IFRS 10) and they are not consolidated in to the Group’s financial statements.
(vi) The Group does not have a shareholding in these employee benefit trusts, however, these trusts are specifically designed to serve the purposes of the
sponsoring group entity and to ensure that there will be minimal risk of any conflict arising between the duties of the trustees and the interest of the group
entity. Accordingly, these trusts are under the de facto control of the group entity. IFRS 10 control assessment also supports that these trusts are under
controlof the group entity and are consolidated into the Group’s financial statements on that basis.
(vii) Listed as a non-wholly owned subsidiary as equity ownership is less than 100% however due to the Group having a present ownership interest in the
remainingequity shares subject to put options, it has been determined that there is no non-controlling interest present and the entity is accounted for
asawholly ownedsubsidiary.
The Group holds a number of investments in associates and joint ventures where it holds more than 50% of the
shareholding in these entities. Similarly, the Group holds a number of joint ventures where the shareholding is less
than 50% and some associates and one subsidiary where the shareholding is 50%. In all these instances management
has determined the appropriate classification of these shareholdings based on the contractual arrangements and
agreements in place, in particular focusing on the parties who have the ability to direct/control the relevant activities
of the investment taking into account representation on the Board of Directors, ability to participate/direct policy
making processes and the rights to variable returns from the investee.
NOTES TO THE FINANCIAL STATEMENTS continued
Year ended 31 December 2023
35. Group – Investments continued
264
Annual report and accounts 2023
Constant currency
The Group generates revenues and profits in various territories and currencies because of its international footprint.
Those results are translated on consolidation at the foreign exchange rates prevailing at the time. These exchange
rates vary from year to year, so the Group presents some of its results on a constant currency basis. This means that
the current year results are retranslated using the prior year exchange rates. This eliminates the effect of exchange
from the year-on-year comparison of results.
The constant currency effect on revenue, reported profit and underlying profit is summarised below:
2023
£m
2023
Constant
currency
effect
£m
2023 at
Constant
currency
£m
Revenue 2,238.0 (14.4) 2,252.4
Profit before tax 55.4 (1.1) 56.5
Underlying profit before tax 94.8 (0.7) 95.5
The Group’s segmental results for the current year are presented below in constant currency:
2023 at Constant Currency
Transaction
Advisory
£m
Consultancy
£m
Property and
Facilities
Management
£m
Investment
Management
£m
Unallocated
£m
Total
£m
Revenue
United Kingdom – commercial 100.6 227. 8 304.5 43.2 – 676.1
United Kingdom – residential 171.0 43.2 51.2 – – 265.4
Total United Kingdom 271.6 271.0 355.7 43.2 – 941.5
CEME 116.2 76.1 97.0 54.1 – 343.4
Asia Pacific – commercial 106.2 86.6 452.0 8.1 – 652.9
Asia Pacific – residential 18.5 – – – – 18.5
Total Asia Pacific 124.7 86.6 452.0 8.1 – 671.4
North America 267.7 28.4 – – – 296.1
Revenue 780.2 462.1 904.7 105.4 – 2,252.4
Underlying profit/(loss) before tax
United Kingdom – commercial 14.0 25.4 24.5 4.8 (8.7) 60.0
United Kingdom – residential 19.4 4.3 5.9 – – 29.6
Total United Kingdom 33.4 29.7 30.4 4.8 (8.7) 89.6
CEME (20.2) 5.1 (3.9) 9.2 – (9.8)
Asia Pacific – commercial (2.9) 2.0 22.7 0.7 – 22.5
Asia Pacific – residential 1.6 – – – – 1.6
Total Asia Pacific (1.3) 2.0 22.7 0.7 – 24.1
North America (7.4) (1.0) – – – (8.4)
Underlying profit/(loss) before tax 4.5 35.8 49.2 14.7 (8.7) 95.5
APPENDICES
265
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
The constant currency effect on the Group’s segmental results for the current year is presented below:
2023 – Constant Currency Effect
Transaction
Advisory
£m
Consultancy
£m
Property and
Facilities
Management
£m
Investment
Management
£m
Unallocated
£m
Total
£m
Revenue
United Kingdom – commercial – – – – – –
United Kingdom – residential – – – – – –
Total United Kingdom – – – – – –
CEME (1.6) 0.2 (0.3) 0.7 – (1.0)
Asia Pacific – commercial (4.1) (2.5) (4.9) (0.3) – (11.8)
Asia Pacific – residential (0.6) – – – – (0.6)
Total Asia Pacific (4.7) (2.5) (4.9) (0.3) – (12.4)
North America (1.0) – – – – (1.0)
Revenue (7.3) (2.3) (5.2) 0.4 – (14.4)
Underlying profit/(loss) before tax
United Kingdom – commercial – – – – – –
United Kingdom – residential – – – – – –
Total United Kingdom – – – – – –
CEME (0.1) (0.1) 0.1 0.1 – –
Asia Pacific – commercial – (0.1) (0.5) – – (0.6)
Asia Pacific – residential (0.1) – – – – (0.1)
Total Asia Pacific (0.1) (0.1) (0.5) – – (0.7)
North America – – – – – –
Underlying profit/(loss) before tax (0.2) (0.2) (0.4) 0.1 – (0.7)
APPENDICES continued
266
Annual report and accounts 2023
SHAREHOLDER INFORMATION
Key dates for 2024
Annual General Meeting 15 May 2024
Financial half-year end 30 June 2024
Announcement of half-year results 8 August 2024
Website
Visit our investor relations website www.savills.com for full up-to-date investor relations information, including the
latest share price, recent Annual and Half-Year Reports, results presentations and financial news.
Shareholder enquiries
For Shareholder enquiries please contact our Registrar, Equiniti (see below). For general enquiries please call our
Shareholder Services helpline on: 0371 384 2018 (overseas holders need to call +44 (0) 371 384 2018. Lines are open
from 8.30am to 5.30pm, Monday to Friday, excluding bank holidays). For further administrative queries in respect of
your shareholding, please access our Registrar’s website at www.shareview.co.uk.
Electronic communications
If you would prefer to receive Shareholder communications electronically in future, including your Annual and Half-
Year Reports and notices of meetings, please visit our Registrar’s website, www.shareview.co.uk and follow the link
to‘Register for e-communications’ under the Shareholder Services section.
Half-Year Report
Like many other listed public companies, we no longer circulate printed Half-Year Reports to Shareholders. Rather,
half-year results’ statements are published on the Company’s website. We believe that this is of benefit to those
Shareholders who do not wish to be burdened with such paper documents, and to the Company, as it is consistent
with our target of saving printing and distribution costs.
Professional advisors and service providers
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
Cannon Place
78 Cannon Street
London EC4N 6AF
Registrar
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Statutory auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
Joint Stockbrokers
UBS Investment Bank
5 Broadgate
London EC2M 2QS
Numis Securities Limited
45 Gresham Street
London EC2V 7BF
Principal Bankers
Barclays Bank PLC
1 Churchill Place
London E14 5HP
267
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS
Cautionary note regarding forward-looking statements
Certain statements included in this Annual Report are forward-looking and are therefore subject to risks, assumptions
and uncertainties that could cause actual results to differ materially from those expressed or implied because they
relate to future events. These forward-looking statements include, but are not limited to, statements relating to the
Company’s expectations. Forward-looking statements can be identified by the use of relevant terminology including
the words: ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘intends’, ‘forecasts’, ‘plans’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’,
‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology and include
all matters that are not historical facts. They appear in a number of places throughout this Annual Report and
include statements regarding our intentions, beliefs or current expectations and those of our Officers, Directors and
employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects,
growth, strategies and the businesses we operate.
Other factors that could cause actual results to differ materially from those estimated by the forward-looking
statements include, but are not limited to:
global economic business conditions;
monetary and interest rate policies;
foreign currency exchange rates;
equity and property prices;
the impact of competition, inflation;
changes to regulations, taxes;
changes to consumer saving and spending habits; and
our success in managing the above factors.
Consequently, our actual future financial condition, performance and results could differ materially from the plans,
goals and expectations set out in our forward-looking statements. Accordingly, no assurance can be given that
any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking
statements which speak only at their respective dates.
The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of
newinformation, future events or otherwise.
SHAREHOLDER INFORMATION continued
268
Annual report and accounts 2023
Savills plc
33 Margaret Street
London W1G 0JD
T: +44 (0)20 7499 8644
www.savills.com
Registered in England
No. 2122174