Slide 1: FY24 Full Year Results Presentation
Service Stream FY24 Full Year Results Presentation 21 August 2024
Slide 2: Acknowledgment of Country
Acknowledgment of Country Service Stream acknowledges the traditional custodians of country throughout Australia and their continuing connections to land, water and communities. We pay our respects to their elders past and present.
Slide 3: Key Messages
Key Messages Scalable and attractive business operating across growing markets 1 Exceptional financial results across all key metrics 2 Strong cash flows and return to net cash position 3 Utilities strategic repositioning substantially complete 4 Continued value creation for Shareholders 5 Strong pl
Slide 4: Group Financial Highlights
Group Financial Highlights Exceeding expectations across all key financial metrics Total Revenue Underlying EBITDA $ 2,392m $ 129.2m Increase of 11.2% up on pcp Increase of 13.2% on pcp NPATA Cashflow Conversion $ 50.1m 101.6% Increase of 36.4% on pcp OCFBIT Net Cash FY24 Total Dividend $ 7.9m 4.5 c
Slide 5: Operational & Strategic Highlights
Operational & Strategic Highlights Creating value through disciplined execution of our strategy Secured Contract Works Expanded WIH $2.2bn $5.5bn Secured over the initial contract Retaining 97% of existing contracts which proceeded to market terms People Improved Utility Performance Improving 3.5% E
Slide 6: Creating significant shareholder value
Creating significant shareholder value The acquisition and integration of Lendlease Services has dramatically changed the Group’s profile Total Revenue ($m) EBITDA from Operations ($m) EPS-A ($m) CAGR 9.6% CAGR 17.3% 129 CAGR 43.8% 8.2 2,392 114 2,151 91 6.2 6.0 80 5.3 1,564 804 FY21 FY22 FY23 FY24
Slide 7: High Quality Diversified Revenues
High Quality Diversified Revenues Positive work mix aligned to the Group’s growth strategy and risk appetite Work Type Commercial Models • Further enhancements to the Group’s revenue profile in line with our strategy 2% 20% ‐ New works secured in FY24 heavily biased to annuity style, lower- 30% risk
Slide 8: Reporting Segment Insights
Reporting Segment Insights Telecommunications Utilities Transport • Segment revenue has significantly diversified over • Segment repositioning continues to make solid • Secured new long-term maintenance agreement the past 3 years, underpinning a tripling of progress with Dept Transport & Planning, s
Slide 9: Major Contract Renewals and New Business
Major Contract Renewals and New Business Secured $2.2bn+ in major multi-year agreements, further enhancing a diversified portfolio \ \ \ \ Renewing and expanding core agreements, Multinet Optus South East Water Energy Queensland Victorian Maintenance National 5G Wireless Metering Services Metering S
Slide 10: Safety Performance
Safety Performance Continuing to deliver industry leading safety performance • 23% reduction in High Potential Incidents • Increased investment and proactive leadership driving several initiatives: ‒ Service Stream Safety Leadership Model ‒ Critical Control awareness program across higher-risk work
Slide 11: Sustainability
Sustainability Making a meaningful contribution across each of the Group’s 5 Sustainable Pathways Safety The wellbeing of our workforce, clients and communities we operate First Nations Support Fleet Optimisation across 1.2% ($19.1m) of 120 Hybrid People Group Revenue Vehicles spent with First Natio
Slide 12: Financial Performance
Financial Performance 12
Slide 13: Financial Headlines
Financial Headlines Total Revenue1 Underlying Underlying EBITDA EBITDA Adjusted NPAT Underlying Operating Total FY24 Dividend from fromOperations Operations22 Cashflow (OCFBIT) $2,392m $129.2m $63.4m $50.1m $131.2m 4.5cps +11.2% vs pcp +15.2% vs pcp 13.2% vs pcp +36.4% vs pcp +42.0% vs pcp 200.0% vs
Slide 14: Telecommunications
Telecommunications Highlights • Strong sector momentum has continued throughout the full year, despite some project works being pulled forward into 1H FY24: ‒ Adverse weather rectification works over Q3 provided additional earning opportunities ‒ 2H FY24 revenue and earnings on par with 1H despite e
Slide 15: Utilities
Utilities Highlights • Strategic repositioning of the Utilities segment has largely been completed • Revenue of $972.1m up $83.7m (9.4%) ‒ Strong revenue growth despite cycling off revenue from discontinued operations and shift away from large scale fixed price lump sum D&C projects ‒ Multiple new O
Slide 16: Transport
Transport Highlights • Transport operations rebased following the de-mobilisation of WA regional road operations in FY23 • New long-term Victorian Road Maintenance contract commenced 1 July 2024 • Revenue of $219.5m, down $72.7m (24.9%) driven by inclusion of WA revenue in FY23 • EBITDA of $14.3m, a
Slide 17: Group Profit and Loss
Group Profit and Loss Comparison of results for the period ended 30 June 2024 $m FY24 FY23 $ • Total Revenue +11.2%: Revenue 2,291.6 2,052.8 238.8 ‒ Driven by continued strong sector tailwinds across Telco EBITDA 116.8 86.9 29.9 and Utility operations Depreciation & amortisation (42.8) (52.6) 9.9 ‒
Slide 18: Cashflow
Cashflow Comparison of results for the period ended 30 June 2024 $m FY24 FY23 Change $ Underlying EBITDA from Operations 129.2 114.1 15.1 • Exceptional full year operating OCFBIT conversion of 101.6%: +/- non-cash items & change in working capital 6.4 (16.8) 23.1 ‒ Continued strong focus on working
Slide 19: Balance Sheet & Capital Management
Balance Sheet & Capital Management Strong financial position supporting a material increase to the final dividend $m Jun-24 • Net cash position achieved in December has been retained and improved Syndicated debt facilities 395.0 • Balance sheet now comfortably in net cash swim lane Bonding facility
Slide 20: Group Outlook
Group Outlook 20
Slide 21: Work In Hand
Work In Hand High quality, multi-year order book across attractive industry sectors • Business secured $2.2bn of work during FY24 • $5.5bn WIH excludes extension options, equating to an additional $4bn if options fully executed • ~85% of WIH for FY25 secured under contract or contract extension opti
Slide 22: Group Outlook
Group Outlook Strong full-year results providing positive momentum into FY25 FY25 Outlook • Positive momentum during FY24 providing a strong foundation for growth and improvement in FY25 • Expect further improvements in quality of earnings across Utility operations • ~85% of WIH for FY25 secured und
Slide 23: FY25 Priorities
FY25 Priorities Creating long-term sustainable value for our Shareholders 1 Maintain industry leading safety performance Realise further improvements across Utility 2 Division earnings Secure organic growth opportunities aligned to 3 Group’s strategy and risk appetite Assessment of external growth a
Slide 24: Appendices
Appendices 24
Slide 25: Reconciliation of statutory to adjusted profitability measures
1. Reconciliation of statutory to adjusted profitability measures Reconciliation of Underlying EBITDA from Ops to NPAT $m FY24 FY23 $ Underlying EBITDA from Operations 129.2 114.1 15.1 Onerous contract provision for QLD project (9.8) (20.1) 10.3 EBITDA from Operations 119.4 94.0 25.4 Joint venture a
Slide 26: Other information
2. Other information Reconciliation of Total Revenue to Revenue $m FY24 FY23 $ Total Revenue 2,391.8 2,150.8 241.0 Joint venture adjustments 100.2 98.0 2.2 Revenue 2,291.6 2,052.8 238.8 Amortisation of customer contracts & relationship Balance $m FY23 FY24 FY25 FY26 FY27 30-Jun-24 Comdain
Slide 27: Disclaimer
Disclaimer This Presentation contains summary information about the current activities of Service Stream Holdings Limited (Service Stream). It should be read in conjunction with the Service Stream’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange