Service Stream Limited · ASX:SSM
Service Stream — Shareholder Meeting (October 2023)
17 slides from Service Stream's shareholder meeting presentation, Oct 18, 2023
Slide 1: Managing Director's 2023 AGM Presentation
Service Stream Limited Managing Director’s 2023 AGM Presentation 18 October 2023
Slide 2: Service Stream's Strategy Delivering Results
Service Stream’s Strategy Delivering Results 1 Integration of Lendlease Services complete Improving financial performance and strengthened 2 balance sheet Expanded service offerings and capabilities, supporting 3 recent organic contract wins Diversified Group portfolio\ across expanded and growing 4
Slide 3: Performance Highlights
Performance Highlights FINANCIAL PERFORMANCE Total Revenue Underlying EBITDA $ 2,150 38% on pcp $ 114.1 25% on pcp million million NPATA Cashflow Conversion 36.8 81.1% \ $ 17.2% on pcp million Underlying OCFBIT Net Debt FY23 Total Dividends $ 35.7 56% on pcp 1.5 cps 50% on pcp million Full
Slide 4: Performance Highlights
Performance Highlights OPERATIONAL & STRATEGIC PERFORMANCE New Works Secured Contracts Re-Secured $ 700m+ 100% Over respective initial Expiring term contracts terms successfully re-secured Queensland Utility Project Utility Operations On Track \ Improved Prior contract provision remains adequate Fin
Slide 5: Utilities
Utilities Highlights • Segment is well positioned coming into FY24 with a diversified revenue • Improving performance in the context of challenging market and operating base and ~85% of NTM revenue secured conditions during FY23 ‒ New 5-year agreement with AGL to provide Loy Yang A Station • Revenue
Slide 6: De-Risking Utilities Exposure
De-Risking Utilities Exposure Queensland Utility Project • Provision taken remains sufficient • Major construction activities remain on track for delivery in CY23 • Project net cash outflow during FY23 ~$25m • Neutral cash flow impact over remaining project period expected Strategic Repositioning •
Slide 7: Telecommunications
Telecommunications Highlights • Strong segment performance throughout FY23 • Momentum across nbn upgrade project and wireless programs maintained throughout H2 • Revenue of $970.4m up $330.4m (51%) reflecting inclusion of LLS operations and strong organic growth • Core O&M programs performing consis
Slide 8: Transport
Transport Highlights • Revenue of $292.2m, up $72.2m (32%) including full-year contribution of • Core ITS (intelligent traffic systems) capability acquired emerging as an LLS operations. area of significant opportunity ‒ Strong growth achieved in 2nd year of Connect Sydney (JV) operations • Positive
Slide 9: FY23 Group Revenue Profile
FY23 Group Revenue Profile Group revenue dominated by lower-risk schedule of rates commercial models Operating Segment Market 11% 21% • High portion of work secured under schedule of rates or cost-plus 41% 45% commercial models, reflecting lower-risk appetite $2.1b 8% $2.1b 34% 2% 5% 14% 6% • Signif
Slide 10: Diversified Portfolio of WIH
Diversified Portfolio of WIH Stable and high-quality client base of government entities and large industrial asset owners Work In Hand Contract Escalation • Majority of work held with government entities, or blue-chip industrial • >95% of WIH under term contracts have in-built review mechanisms clie
Slide 11: Expanding the Group's portfolio
Expanding the Group’s portfolio Leveraging the Group’s expanded capabilities to secure new growth opportunities UTILITIES TELECOMMUNICATIONS UTILITIES AGL NBN Intellihub Loy Yang Station Main Maintenance N2P – Evolution Agreement Smart Meter Installation $170m over 5 years $410m over 2 years $120m o
Slide 12: Sustainability: Our Pillars Framework
Sustainability: Our 5 Pillars Framework Delivering sustainable legacies for our stakeholders and future generations Safety The wellbeing of our workforce, clients and communities we operate across is our first priority Accomplishments Safety Safety People Improving how we attract, retain and 46% red
Slide 13: Sustainability: Safety Performance
Sustainability: Safety Performance Service Stream’s primary and most important sustainability priority Group Performance Total Recordable Injury Frequency Rate Achievements 2.94 2.33 • Significant reductions achieved across all major safety lag indicators : FY22 FY23 ‒ 21% reduction in Recordable In
Slide 14: Our Strategic Pillars
Our Strategic Pillars Supporting the delivery of improved, consistent and incremental value to our Stakeholders Our Vision Our Purpose To be Australia’s Leading Essential Network Services To partner with our valued clients and keep communities connected to Provider the essential infrastructure that
Slide 15: Future Growth
Future Growth Group’s expanded addressable market now exceeds $50b+ in annual maintenance related expenditure Strong Industry Growth • Increased technology adoption & digital transition Core markets • Ageing infrastructure Unprecedented levels of investment from Government and private asset owners /
Slide 16: Trading Update & Group Outlook
Trading Update & Group Outlook FY24 Trading Update • Group trading performance during Q1 in-line with Management’s expectations • Repositioning and financial performance of utility operations continues to be a major focus • Optimisation program underway with positive progress being made on prioritis
Slide 17: www.servicestream.com.au
ServiceStream www.servicestream.com.au