Slide 1: Service Stream Limited HY12 Results Presentation
For personal use only Service Service Stream Stream Limited Limited HY12 FY11 Results Results Presentation Presentation 23 February 2012 August 2011
Slide 2: Agenda
2 Agenda For personal use only 1. Results overview 2. Financial review 3. Strategy & outlook
Slide 3: Results overview
3 For personal use only Results overview Graeme Sumner – Managing Director
Slide 4: Highlights: Financials
4 Highlights: Financials For personal use only EBITDA of $19.2m, up 19.1% on HY11 result. Increase in EBITDA margin from 5.4% to 6.2%. NPAT of $10.0m, up 27.9%. EPS of 3.51 cents up 27.6%. Strong Operating Cashflow result of $19.5m, up $17.1m, providing further funding for current contracts, growth
Slide 5: Highlights: Customers
5 Highlights: Customers For personal use only Contract wins and extensions Syntheo won contracts with NBN Co for the design and construction of the National Broadband Network: WA region, $174m over an initial two-year term, with an option of a further two years, bringing the total potential value to
Slide 6: HY12 reflects continued improvement in most key metrics
HY12 reflects continued improvement in most key 6 metrics For personal use only Revenue ($m) Lost Time Injury Frequency Rate (per million hours worked) HY12 Dec 11 HY11 Dec 10 HY10 Dec 09 HY09 Dec 08 HY08 Dec 07 0 50 100 150 200 250 300 350 0 1 2 3 EBITDA ($m) Operating Cashflow ($m) HY12 HY12 HY11
Slide 7: Financial review
7 For personal use only Financial review Bob Grant – Chief Financial Officer
Slide 8: A strong financial performance across all key financial metrics
A strong financial performance across all key financial 8 metrics For personal use only Dec Dec Change Change $ million 2011 2010 $m % Revenue 308.0 300.3 7.6 2.5% EBITDA 19.2 16.1 3.1 19.1% EBITDA % 6.2% 5.4% n/a 0.9% EBIT 15.4 13.0 2.4 18.1% NPAT 10.0 7.8 2.2 27.9% Operating cash flow 19.5 2.3 17.
Slide 9: Growth in fixed and wireless infrastructure services drives improvement in EBITDA margins
Growth in fixed and wireless infrastructure services 9 drives improvement in EBITDA margins For personal use only REVENUE EBITDA EBITDA % Dec Dec Dec Dec Dec Dec $ million 2011 2010 2011 2010 2011 2010 Telecommunications 221.2 187.7 15.7 11.4 7.1% 6.1% Telstra A&AS 132.3 121.4 Other fixed-line commu
Slide 10: Excellent operating cashflow result delivered through continued focus on working capital efficiency
Excellent operating cashflow result delivered through 10 continued focus on working capital efficiency For personal use only Working Capital % of Annualised Revenue Dec Dec 20% $ million 2011 2010 Reported EBITDA 19.2 16.1 +/- change in working capital 8.6 (11.1) 15% OCFBIT1 27.8 5.0 Net tax paid (7
Slide 11: Increased borrowing capacity through lower gearing levels
Increased borrowing capacity through lower gearing 11 levels For personal use only As at 31 December 2011 Facility Debt Guarantees Amount ($ million) Limit Drawn Drawn Available Commercial Bills & Notes Facilities 65.0 26.0 - 39.0 Multi-option Facility (Overdraft / Bank G'tees) 20.0 - 13.1 6.9 Multi
Slide 12: Interim dividend declared
12 Interim dividend declared For personal use only The Directors have declared a fully-franked interim dividend of 1.0 cent per share, with relevant dates as follows: Ex-dividend date: 12 March 2012 Record date: 16 March 2012 Payment date: 20 April 2012 The Company’s Dividend Reinvestment Plan (DRP)
Slide 13: Income Tax opportunity likely to be nil
13 Income Tax opportunity likely to be nil For personal use only As previously reported, following legislative amendments to the tax treatment of prior-period business acquisitions, Service Stream lodged a series of objections and claimed additional tax deductions of $41.0m. After commissioning the
Slide 14: Strategy & outlook
14 For personal use only Strategy & outlook Graeme Sumner – Managing Director
Slide 15: Maintaining a communications and utilities focus
15 Maintaining a communications and utilities focus by: For personal use only Developing resources and capabilities to maximise opportunities presented by the NBN program. Maintaining our focus on delivering reliable and cost effective services to Telstra and other customers. Maintaining market lead
Slide 16: Outlook: Progress on key projects remains strong
16 Outlook: Progress on key projects remains strong For personal use only National Broadband Network proceeding: • Roll out program in WA/SA/NT on track. • Steady acceleration in new estate deployments. • Significant opportunities remain. • Key focus on attracting and retaining skilled people. Wirel
Slide 17: Appendices
For personal use only Appendices 17
Slide 18: Revenue mix changes
18 Revenue mix changes For personal use only $ million 350 9.5 19.2 5.0 0.6 21.7 14.0 325 6.8 10.9 308.0 300.3 300 275 250 Dec 10 A&AS Wireless NBN NBN Metering Environmental Discontinued Other Dec 11 New Estates Syntheo JV Activities Capability : Ambition : Growth
Slide 19: Group overview
19 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