Service Stream Limited · ASX:SSM
Service Stream — Shareholder Meeting (October 2022)
17 slides from Service Stream's shareholder meeting presentation, Oct 19, 2022
Slide 1: Managing Director's 2022 AGM Presentation
Service Stream Limited Managing Director’s 2022 AGM Presentation 19 October 2022
Slide 2: Highlights: Service Stream profile
Highlights Service Stream profile 3 40+ operating million Property visits divisions conducted per annum Utilities Transport 9,000+ Telco people 80% Employees and skilled of work sub contractors Secured with 80+ Government or Government related Offices & entities warehouses $6.0+ billion Work in hand
Slide 3: FY22 performance highlights
FY22 performance highlights Successful acquisition EBITDA from and integration of Operations of $91.1m, Lendlease Services up 13% on pcp Full-Year EBITDA to Improved forward order OCFBIT conversion of book of $6bn+ WIH and 108% growing Effectively managed Robust balance sheet headwinds arising from
Slide 4: Financial headlines
Financial headlines Total Revenue1 EBITDA from Adjusted Operating Cashflow Final Dividend Operations2 NPAT (OCFBIT) $1,564m $91.1m $31.4m $98.7m 1cps +94.5% vs pcp +13.7% vs pcp -19.4% vs pcp +24.3% vs pcp ● Lendlease Services (LLS) ● EBITDA margin 5.8% ● Includes $2.1m ● Exceptional EBITDA to ● Str
Slide 5: Group transformation
Group transformation A diverse, multi-network essential service provider ● Improved revenue diversification following Lendlease Services acquisition ● Significantly reduced Group concentration risk across any single market / customer ● Growth across annuity style O&M / Minor Capital Works ● Positive
Slide 6: Work in hand
Work in hand Group holds an improved forward order book of $6bn+ and growing Order book increased to $6bn+, excluding multi-year extension options* $6bn+ Work in Extreme weather conditions and elevated inflationary Hand pressures Equates to evident across 3.2x FY22 the industry pro forma revenue
Slide 7: Managing inflationary pressures
Managing inflationary pressures ALTERNATIVE - FOR CONSIDERATION Group is well positioned to manage cost escalation pressures if we wanted to call out / highlight some specific detail across each Division ~87% of revenue subject to annual price reviews or priced ‘on application’ catering to market
Slide 8: Group Safety
Group Safety Maintaining our focus on driving continual improvement Total Recordable Injury Frequency Rate 2.94 Inclusion of LLS metrics a factor in the decline of Group performance, as expected 2.32 2.07 due to operational dynamics 1.53 FY19 FY20 FY21 FY22 Acquisition delivering increased indus
Slide 9: Safety Innovation
Safety Innovation Inflatable Tower Safety Net Service Streams’ proprietary inflatable safety net being deployed on a monopole mobile tower Assisting to reduce the risk of falling objects while working at heights 9
Slide 10: Sustainability
Sustainability Driving measured improvements across the Group's Sustainability Pathways Health & Safety Environment People Governance Community ● Continued proactive ● Adoption of Science ● Enhanced Employee ● Alignment of our ● Finalising Group’s reviews on managing Based Targets Value Proposition;
Slide 11: Utilities
Utilities Increasing our long-term O&M (services) revenues across water, electricity and industrial client base Highlights Major Clients Total Revenue ($m) ● Sydney Water 697.0 ● Revenue growth of 69% with addition of LLS operations, and increased water infrastructure projects ● South East Water 413
Slide 12: Telecommunications
Telecommunications Expanded client base and depth of services across long-term agreements Highlights Major Clients Total Revenue ($m) ● nbn 640.0 ● Revenue growth of 63% driven by inclusion of LLS and strong work volumes 392.4 ● Optus ● Telstra ● EBITDA margin reduction reflective of rebased legacy
Slide 13: Transport
Transport Providing long-term operational support and maintenance services to public and private road asset owners Highlights Major Clients Total Revenue ($m) ● Main Roads Western Australia 220.1 Operations impacted by prolonged wet weather delaying road maintenance and improvement activities acro
Slide 14: Integration Program
Integration Program Delivering on our commitments and keeping to plan Diversified revenue across additional quality blue-chip Successful exit of all TSA modules by 30 June 22 client base Extreme weather conditions and elevated inflationary ● Finance, pressures Peopleacross evident & Culture, share
Slide 15: Future growth
Future growth Group’s expanded addressable market now exceeds $25b in maintenance related expenditure Addressable Maintenance Market ($b) Growth drivers • Australian maintenance related expenditure growing to $51bn+ by FY26 • Service Stream’s addressable markets expanded to $25bn+ through new capabi
Slide 16: Trading update & Group outlook
Trading update & Group outlook FY23 trading update ● Group trading performance over Q1 in-line with Management’s expectations ● Strong performance across integrated telecommunications operations ● Position taken at the full-year associated with the QLD pipeline project remains appropriate ● Bias to
Slide 17: ServiceStream
ServiceStream