Service Stream Limited · ASX:SSM
Service Stream — H1 FY2017 Earnings Presentation
20 slides from Service Stream's earnings presentation, Feb 15, 2017
Slide 1: FY17 First Half Results Presentation
Service Stream Limited FY17 First Half Results Presentation For personal use only Leigh Mackender Managing Director 15 February 2017
Slide 2: Group Highlights
Group Highlights For personal use only EBITDA of $21.1 m (up 35% on FY16 H1) Group NPAT of $13.0m (up 48% on FY16 H1) Financial Strong balance sheet, increased net cash to $44.1m, maintained zero debt Increased interim dividend to 1.5 cents per share (fully-franked) Maintained solid HSE pe
Slide 3: Group Performance
Business Units Update For personal use only Group Performance
Slide 4: Financial Highlights
Financial Highlights $240.8m Fixed Communications revenue up 16.5% on FY16 H1 For personal use only Energy & Water revenue up 27.2% on FY16 H1 Revenue up from $217.1m in FY16 H1 FY17 H1 is the seventh consecutive half-year delivering $21.1m EBITDA growth EBITDA margin of 8.8% driven by favou
Slide 5: Key Financial Measures
Key Financial Measures Group Revenue $300 ($m) For personal use only 240.8 $250 215.0 213.8 217.1 221.9 197.4 $200 174.6 Key financial measures $150 compared to prior corresponding period $100 FY17 FY16 $ million Change $50 1st half 1st half Revenue 240.8 217.1 23.7 11% $0 1H14 2H14 1H15 2H15 1H16 2
Slide 6: Segment Results
Segment Results Group EBITDA $25 ($m) For personal use only 21.1 20.1 $20 15.7 14.7 Segment results $15 compared to prior corresponding period 10.7 $10 9.0 7.5 FY17 FY16 $ million Change 1st half 1st half $5 Fixed Communications 110.7 95.0 15.7 Mobile Communications 83.5 85.0 (1.5) $0 Energy & Water
Slide 7: Cashflow Results
Cashflow Results Group OCFBIT ($m) $40 For personal use only $35 32.3 33.0 30.7 $30 24.3 $25 Cashflow results $20 18.2 compared to prior corresponding period $15 12.1 FY17 FY16 $10 $ million Change 1st half 1st half $5 1.7 EBITDA 21.1 15.7 5.4 $0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 +/- non-cash items
Slide 8: Capital Management
Capital Management Working Capital (% of annualised Revenue) For personal use only 25% Continued operational focus produced a further improvement 20% 17.7% 17.9% in working capital efficiency at 5.6% of annualised revenue 15% 15.3% 12.6% 10% 9.1% 6.2% 5.6% Strong EBITDA to OCFBIT conversion of 1
Slide 9: Operational Performance
Operational Performance For personal use only Maintained solid HSE performance across major metrics: - Lost Time Injury Frequency Rate of 1.27 - Total Recordable Injury Frequency Rate of 4.05 Total Reportable Injuries 25 Phase I of ERP implementation has been delivered on-budget 20 21.15 15 8.54
Slide 10: Business Unit Performance & Update
Business Units Update For personal use only Business Unit Performance & Update
Slide 11: Fixed Communications
Fixed Communications Cable network specialists Fixed Communications $150 Revenue ($m) For personal use only $125 110.7 96.4 95.0 97.7 $100 84.3 $75 Strong EBITDA margin of 12.5% for first-half assisted 55.7 $50 42.7 by favourable work mix, scale efficiencies, $25 operational improvements and one-o
Slide 12: Mobile Communications
Mobile Communications Wireless network specialists Mobile Communications $125 Revenue ($m) For personal use only 99.2 $100 81.5 85.0 81.7 83.5 72.5 $75 67.7 Revenue for the first-half was steady $50 $25 Continuing to work closely with major customers to $0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 impr
Slide 13: Energy & Water
Energy & Water Utility network specialists $100 Energy & Water For personal use only Revenue ($m) 73.5 $75 Increase in revenue & EBITDA in line with expectations $50 50.7 43.8 48.6 40.9 38.2 36.3 Secured new meter reading contracts during first-half to $25 support continued growth: $0 1H14 2H14
Slide 14: Group Strategy & Outlook
Business Units Update For personal use only Group Strategy & Outlook
Slide 15: Group Strategy
Group Strategy Continuing to deliver against our strategic plan during FY17 with dual focus on the fundamentals of our business and future growth For personal use only Superior service delivery and execution Maintain strong balance sheet and manage SERVICE DELIVERY working capital within target
Slide 16: FY17 Outlook
FY17 Outlook We expect that the second-half of FY17 will continue to deliver For personal use only solid operational and financial performance, with EBITDA to be broadly in-line with the first-half: – Extent of growth in wireless work volumes within Mobile Communications still difficult for Manage
Slide 17: Appendices
Business Units Update For personal use only Appendices
Slide 18: Key Financial Measures
Key Financial Measures For personal use only Key financial measures compared to immediately preceding period FY17 FY16 $ million Change 1st half 2nd half Revenue 240.8 221.9 18.9 9% EBITDA 21.1 20.1 1.0 5% EBITDA % 8.8% 9.1% (0.3%) Net profit after tax 13.0 11.2 1.9 17% Earnings per share (cents) 3.
Slide 19: Segment Results
Segment Results For personal use only Segment results compared to immediately preceding period FY17 FY16 $ million Change 1st half 2nd half Fixed Communications 110.7 97.7 13.0 Mobile Communications 83.5 81.7 1.8 Energy & Water 48.6 43.8 4.8 Eliminations & Interest Rec'd (2.0) (1.3) (0.7) Total Reve
Slide 20: Cashflow Results
Cashflow Results For personal use only Cashflow results compared to immediately preceding period FY17 FY16 $ million Change 1st half 2nd half EBITDA 21.1 20.1 1.0 +/- non-cash items & change in working capital 3.2 12.8 (9.6) 1 OCFBIT 24.3 33.0 (8.6) Net tax paid (6.8) (1.7) (5.1) Net interest and fi