Service Stream Limited · ASX:SSM

Service Stream — FY2014 Earnings Presentation

13 slides from Service Stream's earnings presentation, Aug 13, 2014

  1. Slide 1: FY14 Results Presentation

    Service Stream Limited FY14 Results Presentation For personal use only 13 August 2014

  2. Slide 2: Highlights (1 of 2)

    Highlights (1 of 2) For personal use only  Return to profitability with EBITDA of $16.6 million in line with revised guidance  Business generates Operating Cashflow before Interest & Tax of $50.7 million  Successful capital raise nets $18.9 million proceeds  Repayment of core debt by $43.0 milli

  3. Slide 3: Highlights (2 of 2)

    Highlights (2 of 2) For personal use only  Safety performance improves with LTIFR of 2.93  Payments to Syntheo JV of $20.4 million to finalise liability ahead of schedule  Refinancing of banking facilities out to September 2016 nearing finalisation on improved terms  Fixed Communication restores

  4. Slide 4: Successful capital raise

    Successful capital raise to reduce debt and complete refinance on more favourable terms For personal use only  Placement to Thorney International, Thorney Opportunities and other sophisticated investors of 42.5 million shares at $0.22 to raise $9.4 million  Rights Issue of 59.4 million shares at $

  5. Slide 5: Key financial measures

    Key financial measures Return to profitability with a focus on cash flow & capital management For personal use only $ million FY14 FY13 Change Revenue $389.6 $526.6 ($137.0) EBITDA $16.6 ($13.4) $30.0 EBITDA % 4.3% (2.5%) n/a Net profit after tax (before goodwill impairment) $2.3 ($17.3) $19.6 Net p

  6. Slide 6: Key financial trends

    Key financial trends For personal use only Revenue ($m) Net Debt ($m) 700 Revenue of $389.6m, down 70 Net debt reduced to 600 from prior period primarily 60 $10.4m, a reduction of due to cessation of $41.6m over the year. 500 50 contracts not yet offset by 400 NBN related ramp up. 40 300 30 200 20 1

  7. Slide 7: Segment results

    Segment results For personal use only EBITDA EBITDA $ million FY14 FY13 Change % % Fixed Communications $98.4 $136.0 ($37.6) Mobile Communications $166.9 $215.8 ($48.9) Energy & Water $124.2 $174.2 ($49.9) Inter-company revenue ($0.8) ($0.8) ($0.0) Interest received and other $0.9 $1.4 ($0.5) Total

  8. Slide 8: Cashflow results

    Cashflow results Net debt reduced from $52.0m to $10.4m over the year For personal use only $ million FY14 FY13 Change EBITDA $16.6 ($13.4) $30.0 +/- change in working capital $34.1 $19.0 $15.1 OCFBIT (from Service Stream operations) $50.7 $5.6 $45.1 Payments (to) / from Syntheo Joint Venture ($20.4

  9. Slide 9: BU Overview: Fixed Communications

    BU Overview: Fixed Communications Recovery in line with expectations For personal use only  More effective operating structure implemented  Focus on fixed-cost reduction to reduce exposure to volume variability  Continue to work closely with NBN & Telstra to meet emerging network demand  NBN New

  10. Slide 10: BU Overview: Mobile Communications

    BU Overview: Mobile Communications Meeting customer infrastructure plans For personal use only  Focus on fixed-cost reduction to reduce exposure to volume variability  New management team also focussed on:  increasing market-share and providing expanded service offering to telecommunications cust

  11. Slide 11: BU Overview: Energy & Water

    BU Overview: Energy & Water Successfully secured contract renewals and extensions For personal use only  Secured renewals and extensions of core metering contracts during the year, and continues to be a metering service provider of choice across key regions and clients:  Western Power: Three-year

  12. Slide 12: Focused strategy going forward

    Focused strategy going forward to underpin sustainable profitability and to grow shareholder value For personal use only  Unlocking value from existing core businesses … Strengthening customer relationships, retaining key contracts, mitigating contract risk, maximizing volume through delivery excel

  13. Slide 13: Positive outlook

    Positive outlook with each segment positioned well to take advantage of opportunities For personal use only  Fixed Communications Australian government’s investment in the NBN will present new opportunities on the back of its mixed technology strategy as well as in areas of proven competence such a

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