Slide 1: FY25 First-Half Results Presentation
Service Stream FY25 First-Half Results Presentation For the six months ended 31 December 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 Disciplined strategy execution delivering strong results and driving positive momentum 1 Delivered strong growth in revenue, earnings and profit Exceptional cash flow generation and strengthened 2 balance sheet Continued improvement in Utility Division earnings and 3 margins Expanded WI
Slide 4: Group Financial Highlights
Group Financial Highlights Exceeding expectations across all key financial metrics Total Revenue Underlying EBITDA $ 1,267m $ 73.6m Increase of 7.9% up on pcp Increase of 16.4% on pcp NPATA OCFBIT Cashflow Conversion $ 37.7m 126.3% Increase of 49.9% on pcp Net Cash Interim Dividend $ 55.4m 2.5 cps 4
Slide 5: Operational & Strategic Highlights
Operational & Strategic Highlights Disciplined execution of our strategy creating Shareholder value Contracts secured Expanded Work in Hand High Quality Order Book $1.1bn $5.9bn 87% O&M Renewed 94% of existing contracts which ~17% growth on pcp, initial contract Expanded annuity-style O&M contract b
Slide 6: High Quality Diversified Revenues
High Quality Diversified Revenues Diversified revenue aligned to a strong O&M base with exposure to select minor capital projects Work Type Commercial Model • Increased portion of works aligned to annuity-style, lower risk 1% 21% maintenance operations 27% ‐ Multi-year O&M operations reflects ~72% o
Slide 7: Reporting Segment Insights
Reporting Segment Insights Telecommunications Utilities Transport • Strong start to FY25 driven by continued demand • Solid first half result, with demonstrable uplift in • New VRMC contract mobilised successfully in Qtr 1, for fibre connections and back log of remediation segment revenue and EBIT w
Slide 8: Major Contract Renewals and New Business
Major Contract Renewals and New Business Secured $1.1bn+ in major multi-year agreements, further enhancing a diversified portfolio Secured Contract Works Urban Utilities MECS Maintenance 1.1bn Water $ (New) 5 + 5 Year Term Renewed 94% of existing contracts which proceeded to SA Water market Field Se
Slide 9: Safety Performance
Safety Performance Continuing to differentiate through our strong safety culture and leadership Total Recordable Injury Frequency Rate • Proud to be delivering industry leading safety performance 2.71 2.15 • Positive improvements delivered across major lag-indicators 1H24 1H25 • Key areas of focus:
Slide 10: Financial Performance
Financial Performance 10
Slide 11: Financial Headlines
Financial Headlines Total Revenue1 Underlying Underlying EBITDA EBITDA Adjusted NPAT Operating Cashflow Interim Dividend from fromOperations Operations22 (OCFBIT) $1,267m $73.6m $63.4m $37.7m $90.6m 2.5cps +7.9% vs pcp +15.2% 16.4% vs vs pcp pcp +49.9% vs pcp +34.3% vs pcp 25% vs pcp • Group EBITDA
Slide 12: Telecommunications
Telecommunications Highlights • Strong sector momentum has continued into FY25 • Revenue of $626.0m, up $30.0m (5.0%): ‒ Additional revenue from clearing backlog remediation and connection demand to improve industry response times ‒ Increase in activation volumes following the nbn fibre overbuild pr
Slide 13: Utilities
Utilities Highlights • Solid H1 performance reflecting the benefits of the strategic repositioning undertaken over the past 2 years • Revenue of $530.1m up $54.3m (11.4%) ‒ Strong revenue growth despite cycling off discontinued operations and completed D&C projects ‒ New contract wins and organic gr
Slide 14: Transport
Transport Highlights • Revenue of $110.5m, up $8.6m (8.4%) ‒ New long-term Victorian Road Maintenance contract commenced 1 July 2024 ‒ Acquisition of remaining 50% of SARS JV (SA outback zone) in September ‒ Connect Sydney JV delivered strong revenue growth ‒ Revenue growth offset by projects comple
Slide 15: Group Profit and Loss
Group Profit and Loss Comparison of results for the period ended 31 December 2024 $m 1H25 1H24 $ • Total Revenue +7.9%: Revenue 1,222.4 1,134.0 88.3 ‒ Revenue growth achieved across all 3 segments EBITDA 71.7 53.0 18.7 ‒ Largest driver was Utilities across new and existing Depreciation & amortisatio
Slide 16: Cashflow
Cashflow Comparison of results for the period ended 31 December 2024 $m 1H25 1H241 Change $ EBITDA 71.7 53.0 18.7 Change in working capital and non-cash items 17.7 13.5 4.1 • Closing net cash of $55.4m, up $52.1m on pcp Adjustments for joint ventures 1.2 1.0 0.3 OCFBIT 90.6 67.5 23.1 • Exceptional h
Slide 17: Balance Sheet & Capital Management
Balance Sheet & Capital Management Maintaining a strong balance sheet with firepower to grow 1. Maintain strong balance sheet • Capital lite business model, target > 80% OCFBIT conversion 126% H1 OCFBIT • Debt facilities $395m refinanced and extended to December 2027 Conversion • Expect to maintain
Slide 18: Group Outlook
Group Outlook 18
Slide 19: Work In Hand
Work In Hand Expansion of the Group’s high-quality and diversified order book • ~17% increase in WIH on pcp, following a positive period of contract retentions and new wins WIH ($b) 5.9 5.0 • Group’s WIH now reflects $5.9bn, excluding extension options +17% 1.2 1.0 ‒ Extension options equate to an a
Slide 20: Group Outlook
Group Outlook Expanded WIH, improved quality of earnings and scalable business platform to support earnings growth in FY25 • Positive momentum throughout FY24 has supported a strong start to FY25 • ~99% of WIH for FY25 secured under contract or contract extension options • Expect further improvement
Slide 21: Appendices
Appendices 21
Slide 22: Reconciliation of Statutory to Adjusted Profitability Measures
1. Reconciliation of statutory to adjusted profitability measures Reconciliation of EBITDA from Operations to NPAT $m 1H25 1H24 $ Underlying EBITDA from Operations 73.6 63.3 10.3 Onerous contract provision for QLD Utility project - (9.8) 9.8 EBITDA from Operations 73.6 53.5 20.1 Joint venture adjust
Slide 23: Other Information
2. Other information Reconciliation of Total Revenue to Revenue $m 1H25 1H24 $ Total Revenue 1,266.7 1,173.8 92.9 Joint venture adjustments (44.3) (39.8) (4.5) Revenue 1,222.4 1,134.0 88.3 Amortisation of Customer Contracts & Relationship Balance $m FY25 FY26 FY27 FY28 31 Dec 25 Comdain Infra
Slide 24: 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