Slide 1: FY18 Results Presentation
Service Stream Limited FY18 Results Presentation Leigh Mackender Managing Director 15 August 2018
Slide 2: Contents
Contents 1 Company Profile 2 Performance Highlights 3 Financial Performance 4 Operational Performance 5 Group Strategy & FY19 Outlook 6 Historical Financial Performance Data 2
Slide 3: Company Profile
Company Profile Service Stream Limited (ASX: SSM) is a S&P/ASX 300 company providing design, construction, installation and maintenance services across essential infrastructure networks within the Telecommunication and Utility sectors Network operations, Network engineering, design and Utility asset
Slide 4: Performance Highlights
Performance Highlights FY18 EBITDA of $67.3m … up 39% on FY17 FY18 NPAT of $41.1m … up 45% on FY17 Financial FY18 EPS of 11.29 cps … up 45% on FY17 Solid cash generation leading to Net Cash of $73.0m at 30-Jun-18 Increased final dividend to 4.5 cents per share (fully-franked) Maintained
Slide 5: Financial Performance
FINANCIAL PERFORMANCE
Slide 6: Financial Highlights
Financial Highlights $632.9m Revenue up 26% … with growth delivered across all three operating segments relative to the prior corresponding period Revenue up from $501.8m in FY17 (FY17) 2H18 is the tenth consecutive half-year delivering growth in each $67.3m EBITDA up from $48.4m in FY17 of EB
Slide 7: Key Financial Measures
Key Financial Measures 10th consecutive half-year delivering improvement across key profit measures Group Revenue $800 ($m) $700 Key financial measures 632.9 $600 501.8 $500 438.9 411.3 $ million FY18 FY17 Change $400 389.6 $300 Profitability: $200 Revenue 632.9 501.8 131.1 26% $100 EBITDA 67.3 48.4
Slide 8: Segment Results
Segment Results Delivering revenue & profit growth across all segments, led by Fixed Communications Group EBITDA ($m) $80 $70 67.3 $60 48.4 $50 Segment results 35.8 $40 $30 25.4 $ million FY18 FY17 Change 16.6 $20 Fixed Communications 301.3 215.6 85.7 $10 Network Construction 234.9 196.8 38.0 $0 FY1
Slide 9: Cashflow Results
Cashflow Results Quality of earnings underpinned by strong cashflow performance EBITDA to OCFBIT conversion % 300% 250% Cashflow results 200% 183.0% 177.8% 148.5% 150% 133.7% 117.6% $ million FY18 FY17 Change 100% EBITDA 67.3 48.4 18.9 50% 0% +/- non-cash items & change in working capital 32.6 8.5 2
Slide 10: Capital Management
Capital Management Highlighted by the on-market share buy-back & increase in dividends Net Cash / (Net Debt) ($m) $80 73.0 $70 $60 49.9 The Group’s balance sheet continues to strengthen with Net Cash $50 $40 41.1 increasing by $23.1m during the year to $73.0m, after: $30 $20 14.8 $10 - buy-back of
Slide 11: Operational Performance
OPERATIONAL PERFORMANCE
Slide 12: Safety Performance
Safety Performance Maintaining our focus on the safety of our people, our customers and the community Focus continues on maintaining a strong safety culture as operations across the business continue to grow and expand Delivered further improvements in reducing lost time injuries and severity ra
Slide 13: Fixed Communications
Fixed Communications Network operations, maintenance and minor works Fixed Communications $400 Revenue ($m) $350 301.3 $300 Revenue up 39.7% on prior year driven by an increase in nbn $250 215.6 OMMA volumes and minor projects, with a solid revenue $200 195.3 182.0 contribution of $48.3 million fr
Slide 14: Network Construction
Network Construction Network engineering, design and construction Network Construction $300 Revenue ($m) $250 234.9 196.8 Revenue up 19.3% on prior year driven by increases in Wireless $200 177.8 and nbn design & construction activities under the MIMA & DCMA $150 139.4 contracts $100 $50 $0 Incr
Slide 15: Energy & Water
Energy & Water Utility asset installation, inspection and maintenance Energy & Water $175 Revenue ($m) $150 Revenue up 10.7% on prior year with TechSafe’s revenue of $125 94.6 104.7 $100 $14.9m for the year impacted by a slightly slower second-half. $75 77.3 82.0 $50 EBITDA margin steady and in
Slide 16: Group Strategy & Outlook
GROUP STRATEGY & OUTLOOK ye >. es
Slide 17: Group Strategic Pillars
Group Strategic Pillars We continue to focus on five fundamentals which drive operational effectiveness, continual improvement and support future growth CLIENT OPTIMISE OUR OUR DELIVER SERVICE DELIVERY RELATIONSHIPS DELIVERY MODEL PEOPLE GROWTH Continued focus on Continue to develop and Ongoin
Slide 18: Delivering Continued Growth
Delivering Continued Growth The business remains well positioned to deliver sustainable growth into the future Organic growth continues to be underpinned by superior service delivery and a ORGANIC solid contract pipeline across a blue-chip client base: nbn activations forecasted to increase in F
Slide 19: FY19 Outlook
FY19 Outlook We anticipate growth in Group EBITDA, EBIT and NPAT in FY19 leading to EPS growth of at least 10%, subject to forecasted customer demand. FY19 priorities include: – continued focus on superior service delivery and customer satisfaction for nbn in respect of customer activations and
Slide 20: Historical Financial Performance Data
HISTORICAL FINANCIAL PERFORMANCE DATA
Slide 21: Profit & Loss
PROFIT & LOSS $ million 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 FY15 FY16 FY17 FY18 Fixed Communications $93.16 $102.12 $97.19 $84.79 $100.96 $114.64 $145.70 $155.61 $195.29 $181.99 $215.59 $301.30 Network Construction $63.65 $75.74 $82.90 $94.89 $93.63 $103.19 $99.20 $135.65 $139.38 $177.80 $196.82
Slide 22: Shareholders' Perspective
SHAREHOLDERS' PERSPECTIVE $ million 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 FY15 FY16 FY17 FY18 Avg number of shares on issue (millions) 386.390 386.390 386.390 382.770 363.846 365.189 365.189 362.695 386.390 384.590 364.512 363.952 NPAT $4.05 $7.68 $8.81 $11.17 $13.03 $15.34 $19.90 $21.20 $11.72 $1
Slide 23: Cash Flow
CASH FLOW $ million 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 FY15 FY16 FY17 FY18 EBITDA $10.66 $14.73 $15.68 $20.14 $21.09 $27.26 $32.05 $35.25 $25.39 $35.82 $48.35 $67.30 +/- non-cash items & change in w/capital ($8.97) $17.53 $15.03 $12.83 $3.25 $5.26 $25.05 $7.57 $8.57 $27.86 $8.51 $32.62 OCFBIT $
Slide 24: Segment Results
SEGMENT RESULTS $ million 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 FY15 FY16 FY17 FY18 Fixed Communications nbn Activation & Assurance $43.27 $54.32 $61.63 $57.81 $66.80 $79.54 $109.94 $108.11 $97.60 $119.45 $146.33 $218.05 nbn Minor Projects $2.50 $4.92 $5.88 $6.86 $6.76 $6.59 $12.50 $22.44 $7.42 $1
Slide 25: Group Financial Results – by half-year
Group Financial Results – by half-year Group Revenue Group EBITDA Group EBITDA % $40 ($m) ($m) 338.8 12.0% $350 35.2 10.9% 10.4% 10.4% 294.1 $35 32.1 $300 10.0% 9.1% 261.0 8.8% $30 27.3 240.8 $250 215.0 213.8 217.1 221.9 $25 8.0% 6.9% 7.2% 197.4 21.1 $200 20.1 174.6 $20 6.0% 5.2% 5.4% 14.7 15.7 $150
Slide 26: Group Financial Results – by half-year
Group Financial Results – by half-year Group OCFBIT EBITDA to OCFBIT conversion % ($m) Working Capital $60 57.1 300% (% of annualised Revenue) 25% 241% $50 250% 219% 42.8 20% 17.7% 17.9% 196% $40 200% 178% 15.3% 32.3 33.0 32.5 164% 15% 30.7 12.6% $30 150% 134% 24.3 115% 119% 122% 9.2% 10% 18.2 100%
Slide 27: Segment Results – by half-year
Segment Results – by half-year Fixed Communications Network Construction Energy & Water $175 Revenue ($m) $150 Revenue ($m) $75 Revenue ($m) 155.6 135.7 145.7 $150 $125 103.2 53.5 $125 114.6 99.2 51.1 $100 94.9 93.6 48.6 102.1 101.0 $50 46.0 97.2 82.9 43.8 $100 93.2 75.7 40.9 84.8 36.3 38.2 $75 63.6
Slide 28: Disclaimer
Disclaimer Important information for investors This presentation has been prepared by Service Stream Limited (SSM). Whilst the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy or r
Slide 29: Service Stream
servicestream ESSENTIAL NETWORK SERVICES