Service Stream Limited · ASX:SSM
Service Stream — Investor Presentation (September 2007)
19 slides from Service Stream's investor presentation, Sep 4, 2007
Slide 1: AAS Contract & Capital Raising
For personal use only AAS Contract & Capital Raising September 2007
Slide 2: Agenda
Capability + Ambition + Growth Agenda For personal use only • AAS Contract Win • Financial Impact • Equity Capital Raising 2
Slide 3: Access and Associated Services contract win
Capability + Ambition + Growth Access and Associated Services contract win For personal use only • National Telstra contract (Metropolitan & Regional) • 4 years • Estimated Annual Revenue of over $300m from FY2009 onwards • Increased national presence • Services also referred to as SIMBA: • Speciali
Slide 4: What does AAS mean financially?
Capability + Ambition + Growth What does AAS mean financially? For personal use only • Revenue of over $300M per annum after 1st year • FY2008 $195.0M • FY2009 $300.0M • Replaces existing Telstra contracts of $55M per annum • 2007/8 forecast includes all capital expenditure, ramp-up costs and workin
Slide 5: Current AAS Activity
Capability + Ambition + Growth Current AAS Activity Metro BNE/SYD/ADL/PER QLD For personal use only Service Stream Current FTEs – 523 • Teneriffe • Geebung Current Revenues AAS TCI • Brisbane 06/07 - $55M NSW 07/08 (Forecast) - $60M Service Stream • Silverwater • North Ryde • St Leonards GPG • Wethe
Slide 6: Post AAS Activity
Capability + Ambition + Growth Post AAS Activity Now known as AAS QLD AAS Regions For personal use only Service Stream National Contract Queensland • Teneriffe Forecast FTEs – 1,882 -Brisbane Nth • Geebung -Queensland Sth TCI 13 New Branches • Brisbane NSW Forecast Revenues AAS NSW -Sydney Sth Servi
Slide 7: Additional information
Capability + Ambition + Growth Additional information For personal use only • Over 10 years experience providing full range of AAS services • Highly experienced management team • Leverages existing national network • Ability to integrate workflow management system to fit Telstra’s system • Steering
Slide 8: Cash Flow impact of AAS contract
Capability + Ambition + Growth Cash Flow impact of AAS contract For personal use only FY2008 $ million Operating cash flow * ($13.7m) Capital expenditure ($1.9m) Mobilisation costs (recruitment and training) ($1.0m) Ramp-up costs ($4.1m) Net Cash Flow ($20.7m) * Operating cash flow includes the foll
Slide 9: Capital expenditure for AAS contract
Capability + Ambition + Growth Capital expenditure for AAS contract For personal use only Budgeted capital expenditure consists of the following: $ million Depot fit-out $3.4m IT Systems $2.5m Call Centre Upgrade $1.0m Other (vehicles, tools, etc) $0.7m Total Capital expenditure $7.6m To be funded b
Slide 10: Equity Raising – Pro forma Balance Sheet
Capability + Ambition + Growth Equity Raising – Pro forma Balance Sheet Actual Pro-forma For personal use only $ million 30 June 2007 Adjustments* 30 June 2007 Cash 5.2 +4.5 9.7 Receivables & WIP 80.3 80.3 Fixed Assets 5.2 5.2 Other 7.7 7.7 Goodwill 155.7 155.7 Total Assets 254.1 258.6 Payables & pr
Slide 11: Guidance
Capability + Ambition + Growth Guidance For personal use only FY 2008 • At least $37M EBITDA • Includes $7M in AAS start up costs • EPS impacted by significant working capital funding for AAS contract build-up (approx $30M) • Average debt in 2008 expected to be approx $40M (after capital raising) at
Slide 12: Equity Raising – $40M Placement
Capability + Ambition + Growth Equity Raising – $40M Placement For personal use only Offer Structure • $40M to be raised by issue of fully paid ordinary shares • New shares will be eligible for final dividend of 4.5¢ (fully franked) payable on 19 October 2007 • Lead Manager – Citi • Equity raising w
Slide 13: Equity Raising – Indicative Timetable
Capability + Ambition + Growth Equity Raising – Indicative Timetable For personal use only Trading Halt Before 10.00am, 3 Sep 2007 Books Open 12.00pm, 3 Sep 2007 Management Presentation 2.30pm, 3 Sep 2007 Books Close 6.30pm, 3 Sep 2007 Announcement of the Placement and lift Before 10.00am, 4 Sep 200
Slide 14: Appendix: Extract from FY2007 Results Presentation
For personal use only Appendix Extract from FY2007 Results Presentation
Slide 15: Highlights – Full-year to June 2007
Capability + Ambition + Growth Highlights – Full-year to June 2007 For personal use only y Record earnings performance: Pro forma Statutory Revenue $292.5M, +71.1% $247.1M, +44.5% EBITDA $30.1M, +244.3% $21.2M, +142.6% NPAT $17.5M, +301.6% $11.2M, +158.2% y Increased fully franked dividend of 4.5 ce
Slide 16: Continued Expansion
Capability + Ambition + Growth Continued Expansion For personal use only August 2006 Acquired Fibercom August 2006 Vodafone contract extension and expansion January 2007 Completes merger with TCI, cancels 40.3M shares January 2007 Acquired General Purpose Group February 2007 Awarded Do Not Call Regi
Slide 17: Operational Overview
Capability + Ambition + Growth Operational Overview For personal use only TOW (Ticket of Work) Contact Centre Solutions Infrastructure Services • Installation and maintenance • STR Solutions • Recoverable works • Installation and maintenance • Specialist Services • Do Not Call Register • Utilities •
Slide 18: Continued Strong Growth
Capability + Ambition + Growth Continued Strong Growth For personal use only Six monthly Revenue / EBITDA (Pro Forma Dec 06) November 2004 February 2005 January 2006 August 2006 January 2007 190 Acquired Skilled Acquired operating Acquired Acquired Merger Communications Businesses of Milcom Fibercom
Slide 19: Important Notice - Disclaimer
Capability + Ambition + Growth Important Notice - Disclaimer For personal use only 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
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