Slide 1: ASX cover letter: Service Stream reports full year results
Service Stream Limited Level 1, 355 Spencer Street Tel: 61 3 9677 8888 West Melbourne, VIC 3003 Fax: 61 3 9677 8800 PO Box 14570, ABN: 46-072-369-870 Melbourne, VIC 8001 www.servicestream.com.au For personal use only 25 August 2011 The Manager – Listings Australian Securities Exchange Limited Exchan
Slide 2: Service Stream Limited FY11 Results Presentation
For personal use only Service Service Stream Stream Limited Limited FY11 FY11 Results Results Presentation Presentation August 2011 August 2011
Slide 3: Agenda
2 Agenda For personal use only 1. Results overview 2. Financial review 3. Strategy & outlook
Slide 4: Results overview
3 For personal use only Results overview Graeme Sumner – Managing Director
Slide 5: Full Year Highlights
4 Full Year Highlights For personal use only EBITDA of $34.6m up 28.1% on underlying FY10 result Increase in EBITDA margin from 5.2% to 5.5% Basic EPS of 5.80 cents LTIFR down to 1.21 per million hours worked Contract wins, extensions and renewals underpin solid forward revenue Important
Slide 6: FY11 reflects improvement across all key metrics
5 FY11 reflects improvement across all key metrics For personal use only Revenue ($m) Lost Time Injury Frequency Rate (per million hours worked) FY 11 FY 11 FY 10 FY 10 FY 09 FY 09 FY 08 FY 08 FY 07 FY 07 0 100 200 300 400 500 600 700 0.0 1.0 2.0 3.0 4.0 5.0 EBITDA ($m) Operating Cashflow ($m) FY 11
Slide 7: It's been a busy FY11 across all core segments
6 It’s been a busy FY11 across all core segments For personal use only 1.6 million tickets of work completed under A&AS contract 3,800 fibre lead-ins completed 31 million utility meters read 9,800 solar panel installations completed 310,000 utility meter replacements 900 mobile phone tow
Slide 8: Financial review
7 For personal use only Financial review Bob Grant – Chief Financial Officer
Slide 9: FY11 reflects strong financial performance across all key financial metrics
FY11 reflects strong financial performance across all 8 key financial metrics For personal use only June June Change Change $ million 2011 2010 $m % Revenue 633.3 520.8 112.5 21.6% Underlying EBITDA 34.6 27.0 7.6 28.1% Reported EBITDA 34.6 6.4 28.2 440.3% EBIT 28.1 (0.9) 29.1 n/a NPAT 16.5 (2.6) 19.
Slide 10: The strategic rebalancing of our revenue mix continues
9 The strategic rebalancing of our revenue mix continues For personal use only $ million 700 29.1 40.2 660 31.8 4.7 1.5 633.3 12.2 620 85.8 580 540 520.8 500 460 Jun 10 Environmental Metering TCI & A&AS Discontinued Other Eliminations Jun 11 Infrastructure Activities Services Capability : Ambition :
Slide 11: Significant growth in AMRS drives lift in revenues
Significant growth in AMRS drives lift in revenues 10 whilst EBITDA margins continue to improve For personal use only REVENUE EBITDA EBITDA % June June June June June June $ million 2011 2010 2011 2010 2011 2010 Specialist Field Services 580.7 446.8 39.7 27.3 6.8% 6.1% Customer Care 59.6 79.8 2.5 5.
Slide 12: Excellent operating cashflow result assisted by working capital efficiency
Excellent operating cashflow result assisted by 11 continued improvement in working capital efficiency For personal use only Working Capital % of Revenue June June $ million 2011 2010 20% Reported EBITDA 34.6 6.4 +/- change in working capital (2.8) 17.2 OCFBIT 1 31.8 23.6 15% Net tax paid (1.6) (0.4
Slide 13: Increased borrowing capacity through lower gearing levels and new trade line facility
Increased borrowing capacity through lower gearing 12 levels and new trade line facility For personal use only Facility Amount Amount Leverage = 1.1x As at 30 June 2011 ($ million) Limit Drawn Available (Net Debt/EBITDA) Commercial bills 65.0 38.0 27.0 Overdraft 5.0 - 5.0 Finance leases 15.0 9.3 5.7
Slide 14: Capital Management Update
13 Capital Management Update For personal use only The directors have not declared a dividend in respect of FY11 SSM is well positioned to take advantage of opportunities (e.g. NBN) without the need to raise capital Shareholders’ desire for dividends is well understood, and the Company’s objec
Slide 15: Income Tax opportunity update
14 Income Tax opportunity update For personal use only Background Following amendments to Income Tax law in May 2010, Service Stream lodged a series of objections with the ATO with respect to the tax treatment of acquisitions made by the company dating back to 2004, including the merger with TCI i
Slide 16: Strategy & outlook
15 For personal use only Strategy & outlook Graeme Sumner – Managing Director
Slide 17: Strategy - A communications and utilities focus
16 Strategy - A communications and utilities focus by: For personal use only Retaining our leadership position in fixed line maintenance services Delivering on our build and upgrade programs in mobile infrastructure Developing additional resources and capabilities to meet the demands of the Na
Slide 18: National Broadband Network update
17 National Broadband Network update For personal use only Addressable market* $16-20 billion <10% awarded to date * Service Stream’s estimate of the addressable market relating to fibre network design & construct, lead-ins, installation of optical network terminals (ONTs), maintenance augmentat
Slide 19: We're well positioned for NBN
18 We’re well positioned for NBN For personal use only Capabilities: Can meet all of Telstra’s network remediation requirements Specialist capability to perform lead-ins and installation of ONTs Formed Syntheo JV with Lend Lease to bid for fibre network design & construct Design and construct wire
Slide 20: Outlook: Significant opportunities for growth
19 Outlook: Significant opportunities for growth For personal use only National Broadband Network proceeding: <10% of addressable work released to the market so far SSM has already secured significant work Mobile telephony market remains very active: Data demand continues to drive growth in infr
Slide 21: Appendices
For personal use only Appendices 20
Slide 22: Balance sheet
21 Balance sheet For personal use only 30 June 30 Jun $ million 2011 2010 Cash 9.2 - Receivables and WIP 146.6 120.5 Plant and equipment – WDV 9.1 13.2 Inventory 14.3 14.9 Other 11.4 9.0 Goodwill and other intangible assets 211.4 207.6 Total assets 402.0 365.1 Payables 79.5 59.0 Core debt 38.0 49.0
Slide 23: Cash flow statement
22 Cash flow statement For personal use only 30 June 30 June $ million 2011 2010 Receipts from customers 689.6 571.9 Payments to suppliers and employees (657.8) (548.3) Net interest and other finance costs (5.6) (6.4) Income tax paid (1.6) (0.4) Net cash used in operating activities 24.6 16.8 Net ca
Slide 24: 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 sectors. It is a niche provider of value added services & applications to government, utilities and public c
Slide 25: Group overview (continued)
24 Group overview (continued) For personal use only Business Segment CUSTOMER CARE SPECIALIST FIELD SERVICES TCI CUSTOMER CARE COMMUNICATIONS AMRS (Including Infrastructure Services) 50% 30% FY11 Segment Revenue Contributions 20% Business Offers a complete end to end Provides a range of network Spec