Slide 1: FY2010 Results Presentation
For personal use only FY2010 Results Presentation
Slide 2: Agenda
2 Agenda For personal use only 1. Results overview 2. Financial review 3. Strategy & outlook AED Oil Limited
Slide 3: Results Overview
3 For personal use only Results Overview Graeme Sumner – Managing Director AED Oil Limited
Slide 4: Underlying EBITDA in line with expectations; excellent operating cash flow performance
Underlying EBITDA in line with expectations; excellent 4 operating cash flow performance For personal use only • $23.2m increase in metering & solar revenue $520.8M • $40.2m decline in infrastructure project Revenue down from $558.2m revenues • Strong growth in AMRS $27.0M • Project volumes declined
Slide 5: Underlying performance in key businesses steady
5 Underlying performance in key businesses steady For personal use only • New contracts secured and existing contracts renewed • Telstra – Access and Associated Services (AAS) / Payphones • Western Power – meter reading and installation services • Citipower / Powercor – meter reading services • Orig
Slide 6: Improving health and safety performance
6 Improving health and safety performance For personal use only Lost Time Injury Frequency Rate 13.0 • Service Stream is committed to 12.0 providing a workplace that is LTI’s per million hours worked 11.0 10.0 safe and without risk to health 9.0 for all personnel 8.0 7.0 6.0 • Our focus on health an
Slide 7: Financial review
7 For personal use only Financial review Bob Grant – Chief Financial Officer AED Oil Limited
Slide 8: Financial highlights: operating cash flow up 104.9%; net debt down 42.2%
Financial highlights: operating cash flow up 104.9%; net 8 debt down 42.2%; gearing reduced to 20.1% For personal use only 30 June 30 June % change $ million 2010 2009 Revenue 520.8 558.2 (6.7%) Underlying EBITDA 27.0 30.1 (10.3%) Reported EBITDA 6.4 30.1 (78.7%) EBIT (0.9) 22.7 n/a NPAT (2.6) 11.1
Slide 9: Strategic rebalancing of revenue mix
9 Strategic rebalancing of revenue mix For personal use only CUSTOMER CARE SPECIALIST FIELD SERVICES $ million 590 23.2 7.6 580 • Exiting non-core construction 31.9 businesses 570 9.6 11.5 3.4 • Re-focus on core field services 558.2 560 activities 550 16.0 540 530 0.8 5.8 520.8 520 510 500 FY June 0
Slide 10: Significant one-off items impacted reported results
10 Significant one-off items impacted reported results For personal use only REPORTED AT H1 $ million 30 27.0 1.9 1.1 25 15.8 • Majority of impact due to 100% reversal of McCourt Dando GCDA claim as reported 20 in H1 • Net impact of significant items on H2 15 EBITDA ($1.8 million) 10 2.5 3.4 6.4 2.7
Slide 11: Underlying performance of all businesses in line with expectations
Underlying performance of all businesses in line with 11 expectations For personal use only REVENUE UNDERLYING EBITDA EBITDA MARGIN % $ million 2010 2009 2010 2009 2010 2009 SPECIALIST FIELD SERVICES 446.8 479.1 27.3 32.1 6.1% 6.7% - Communications 272.2 283.9 11.6 - 4.3% - - AMRS 73.1 49.9 6.7 - 9.
Slide 12: Cash flow increase driven by improvements in working capital and underlying performance
Cash flow increase driven by improvements in 12 working capital and underlying performance… For personal use only 30 June 30 June $ million 2010 2009 Reported EBITDA 6.4 30.1 Tax paid (0.4) (1.9) Net financing costs (6.4) (7.4) Working capital movement 17.2 (12.6) Operating cash flow 16.8 8.2 Procee
Slide 13: Significant reduction in net debt
13 …which has enabled a significant reduction in net debt For personal use only $ million 110 9.1 102.6 31.4 100 Equity raising and group wide 93.5 focus on capital management saw net debt reduce by $43.3 90 million over FY2010 80 11.9 70 59.3 60 50 40 30 Net Debt June 08 Movement FY09 Net Debt June
Slide 14: Banking facilities extend to July 2012 with headroom for growth
Banking facilities extend to July 2012 with headroom for 14 growth For personal use only Amount As at 30 June 10 ($ million) Facility Limit Amount Drawn Available Commercial bills 67.5 49.0 18.5 Overdraft 10.0 0.7 9.3 Finance leases 13.8 9.6 4.2 Total balance sheet net debt 91.3 59.3 32.0 Bank guara
Slide 15: Strategy & outlook
15 For personal use only Strategy & outlook Graeme Sumner – Managing Director AED Oil Limited
Slide 16: Continued focus on providing flexible, low cost service model
Continued focus on providing flexible, low cost service 16 model… For personal use only • Renewed focus on core activities • Maintain strong focus on our flexible and low cost field services model • Continue to deliver projects and programs to the telecommunications, utilities and government sectors
Slide 17: Core capability gives optimism about future growth
…and our core capability gives us optimism about 17 future growth For personal use only • Demand for core Specialist Field Services strengthening • Environmental services • Coalition and Labor broadband policies both positive • Smart meter installations • Mobile infrastructure • Solid foundation to
Slide 18: Some risks remain
18 Some risks remain… For personal use only • Ongoing Telstra volumes and market uncertainty due to political environment • Uncertainty re commitment of governments to environmental sustainability programs • TCI Ericsson Jersey project - • $50.2m received from client following successful claim, with
Slide 19: But the worst is behind us
19 …but the worst is behind us For personal use only • Review of opportunities underway following amendments to the tax consolidation legislation • Initial tax benefit of $1.3m has been recognised in the FY10 accounts • Continued focus on cash flow generation and tight capital management • McCourt D
Slide 20: Appendices
20 For personal use only Appendices AED Oil Limited
Slide 21: Balance sheet
21 Balance sheet For personal use only 30 June 30 June $ million 2010 2009 Receivables and WIP 122.8 141.3 Plant and equipment – WDV 15.4 20.2 Inventory 14.9 13.5 Other 6.6 2.5 Goodwill 205.4 205.4 Total assets 365.1 382.9 Payables 59.0 67.8 Net debt (including cash ($0.7M) / $9.0M) 59.3 102.6 Provi
Slide 22: Cash flow statement
22 Cash flow statement For personal use only 30 June 30 June $ million 2010 2009 Receipts from customers 571.9 609.1 Payments to suppliers and employees (548.3) (591.6) Net interest and other finance costs (6.4) (7.4) Income tax paid (0.4) (1.9) Net cash used in operating activities 16.8 8.2 Net cap
Slide 23: Group overview
23 Group overview For personal use only Service Stream is a field services organisation, delivering technical services and small projects predominantly to the telecommunications and utilities sector. It is a niche provider of value added services & applications to government, utilities and public co
Slide 24: Group overview (continued)
24 Group overview (continued) For personal use only Business Segment CUSTOMER CARE SPECIALIST FIELD SERVICES FY10 Revenue $79.9m $79.8m $446.8m TCI CUSTOMER CARE COMMUNICATIONS AMRS (incl Infrastructure Ser vices) FY10 Segment Revenue Contributions $272.2m $101.5m $73.1m Business Offers a complete e
Slide 25: Important Notice – Disclaimer
25 For personal use only Important Notice – Disclaimer This presentation has been prepared by the management of Service Stream Limited (the ‘Company’) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. Neither the Company, nor any of its