Service Stream Limited · ASX:SSM
Service Stream — H1 FY2016 Earnings Presentation
15 slides from Service Stream's earnings presentation, Feb 17, 2016
Slide 1: FY16 First Half Results Presentation
Service Stream Limited For personal use only FY16 First Half Results Presentation Leigh Mackender Managing Director 17 February 2016
Slide 2: Group Highlights
Group Highlights For personal use only EBITDA of $15.7m (up 6%) / NPAT growth to $8.8m (up 15%)¹ Strong balance sheet and solid cash conversion, cash-on-hand $37.6m, zero Financial debt Increased interim dividend to 1.00 cps (fully-franked) Proposing a 5.0 cps return of capital to shareholde
Slide 3: Financial Highlights
Financial Highlights For personal use only Increase in revenue driven by growth across Mobile $217.1m Communications and Energy & Water segments Strong work volumes continued within Fixed Communications Revenue up from $213.8m FY15 H2 associated with ongoing ramp-up of nbn-related activities F
Slide 4: Operational Highlights
Operational Highlights For personal use only Continued focus on safety sustaining low LTIFR of 1.0 LTIFR (rolling 12 months) Focus on service delivery and client relations underpinning 6.0 5.0 4.6 results 4.0 2.9 3.0 Success in securing new organic growth opportunities 2.0 1.2 across known ser
Slide 5: Key Financial Measures
Key Financial Measures For personal use only $m Revenue 250 215.0 213.8 217.1 Key financial measures 200 197.4 compared to immediately preceding period 174.6 150 FY16 FY15 $ million Change 1st half 2nd half 100 Revenue 217.1 213.8 3.2 2% 50 EBITDA 15.7 14.7 0.9 6% EBITDA % 7.2% 6.9% 0.3% 0 1H14 2H14
Slide 6: Segment Results
Segment Results For personal use only $m EBITDA 18 15.7 16 Segment results 14.7 compared to immediately preceding period 14 12 10.7 FY16 FY15 $ million Change 10 9.0 1st half 2nd half 7.5 Fixed Communications 95.0 96.4 (1.3) 8 Mobile Communications 85.0 81.5 3.5 6 Energy & Water 38.2 36.3 1.9 4 Elim
Slide 7: Cashflow Results
Cashflow Results For personal use only $m Operating Cashflow 35.0 31.8 30.8 Cashflow results 30.0 compared to immediately preceding period 25.0 20.0 FY16 FY15 $ million Change 14.8 1st half 2nd half 15.0 10.1 EBITDA 15.7 14.7 0.9 10.0 +/- change in working capital 15.0 17.5 (2.5) 5.0 0.5 OCFBIT 30.7
Slide 8: Capital Management
Capital Management For personal use only Working Capital Strong cashflow performance assisted by: 25% % of annualised revenue – successful wind-up of certain programs of work within 20% 17.7% 18.0% 15.7% Fixed Communications 15% 12.6% – continued focus on working capital management 10% 9.2% 5% I
Slide 9: Business Unit Update
Business Unit Update For personal use only Fixed Communications Continued growth in work volumes associated with nbn customer connections contract replacing concluded programs of work Secured new nbn MIMA construction agreement for a five-year term, expect future growth as nbn- related construct
Slide 10: Delivering against our Strategic Plan
Delivering against our Strategic Plan Continued execution against our Strategic Plan, underpinning sustainable profitability and growing shareholder For personal use only returns EXTEND the reach of the business to achieve step growth RECONFIGURE the operating model by driving Awarded $500m+ of ne
Slide 11: FY16 Outlook
FY16 Outlook For personal use only We expect that the second-half of FY16 will continue to deliver solid operational and financial performance. EBITDA to be in line with the first-half, subject to a continuation of prevailing market conditions: – Extent of growth in wireless work volumes within Mo
Slide 12: Appendices
For personal use only Appendices
Slide 13: Key Financial Measures
Key Financial Measures For personal use only Key financial measures compared to prior corresponding period FY16 FY15 $ million Change 1st half 1st half Revenue 217.1 197.4 19.6 10% EBITDA 15.7 10.7 5.0 47% EBITDA % 7.2% 5.4% 1.8% Net profit after tax 8.8 4.0 4.8 118% Earnings per share (cents) 2.28
Slide 14: Segment Results
Segment Results For personal use only Segment results compared to prior corresponding period FY16 FY15 $ million Change 1st half 1st half Fixed Communications 95.0 84.3 10.7 Mobile Communications 85.0 72.5 12.5 Energy & Water 38.2 40.9 (2.7) Eliminations & Interest Rec'd (1.1) (0.3) (0.8) Total Reve
Slide 15: Cashflow Results
Cashflow Results For personal use only Cashflow results compared to prior corresponding period FY16 FY15 $ million Change 1st half 1st half EBITDA 15.7 10.7 5.0 +/- change in working capital 15.0 (9.0) 24.0 OCFBIT 30.7 1.7 29.0 Net interest and financing costs 0.1 (1.2) 1.3 Operating Cashflow 30.8 0