Slide 1: FY24 First-Half Results Presentation
Service Stream FY24 First-Half Results Presentation For the six months ended 31 December 2023
Slide 2: Acknowledgment of Country
Acknowledgment of Country Service Stream acknowledges the traditional custodians of the country throughout Australia and their continuing connections to land, water and communities. We pay our respects to their elders past, present and emerging.
Slide 3: 1H FY24 Key Messages
1H FY24 Key Messages Disciplined execution of our strategy creating Shareholder value 1 Strong financial performance 2 Improved quality of earnings Return to net cash position, robust balance sheet to 3 support future growth Strong sector tail winds supporting continued organic 4 growth 5 Improved S
Slide 4: Group Financial Highlights
Group Financial Highlights Significant improvement across key financial metrics supporting enhanced Shareholder returns Total Revenue Underlying EBITDA $ 1,174 $ 63.3 million 18.1% on pcp million 14.9% on pcp NPATA Cashflow Conversion $ 25.2 111% million 46.9% on pcp OCFBIT Net Cash Interim Dividend
Slide 5: Group Operational Highlights
Group Operational Highlights Creating value through disciplined execution of our strategy OPERATIONAL & STRATEGIC UPDATES New and Existing Works Secured Strong WIH $ 1.2bn $5.1bn With 100% of expiring agreements Secured over respective initial successfully re-secured contract terms People Utility Di
Slide 6: Segment Insights
Segment Insights Telecommunications Utilities Transport • Strong sector tailwinds have continued into FY24 • Further progress demonstrated during H1 FY24 • Segment rebased following the demobilisation towards strategic repositioning and improving from WA regional operations in FY23 • Segment revenue
Slide 7: Major Contract Renewals and New Business
Major Contract Renewals and New Business Group secured more than $1.2bn in multi-year contract renewals and new works during H1 FY24 Electricity Gas Telecommunications Water Energy Queensland Multinet Optus South East Water Metering Services Victorian Maintenance Operations National 5G Wireless Mete
Slide 8: Group Revenue Profile
Group Revenue Profile Increased annuity style revenues and maintained a disciplined approach to pricing, commercials and risk appetite Reporting Segments Industry Sectors 12% • Further enhancements to the Group’s revenue profile in line with 21% our strategy 41% $1.2b 50% 7% $1.2b ‐ New works secure
Slide 9: Our People
Our People Improved labour market conditions supporting organic growth Safety Workforce • Group continued to achieve industry leading performance despite an • Workforce attrition continued to reduce during H1 FY24, albeit still increase in contractor related incidents impacting TRFIR higher than pre
Slide 10: Financial Performance
Financial Performance 10
Slide 11: Financial Headlines
Financial Headlines Total Revenue1 Underlying Underlying EBITDA EBITDA Adjusted NPAT Underlying Operating Interim Dividend from fromOperations Operations22 Cashflow (OCFBIT) $1,173.8m $63.4m $63.3m $25.2m $70.1m 2.0cps +18.1% vs pcp +15.2% 14.9% vs pcp +46.9% vs pcp 82.1% vs pcp 300.0% vs pcp • Stro
Slide 12: Telecommunications
Telecommunications Highlights • Strong sector tail winds are continuing to drive elevated performance across all aspects of Telecommunications operations • 1H bolstered by pull forward of project works in last quarter and phasing of wireless programs. Segment performance will be 1H skewed in FY24 •
Slide 13: Utilities
Utilities Highlights • Solid progress made during H1 FY24 towards repositioning and improving Utilities performance • Revenue of $475.8m up $66.9m (16.4%) ‒ Growth across Industrials, Power and Water sectors ‒ Fixed price lump sum D&C project revenues being progressively replaced with new annuity-st
Slide 14: Transport
Transport Highlights • Transport operations rebased following the de-mobilisation of WA regional road operations in FY23 • Solid pipeline of growth opportunities across O&M and ITS markets • Revenue of $101.9m, down $24.4m (19.4%) in-line with Management expectations ‒ ITS operations delivering cons
Slide 15: Group Profit and Loss
Group Profit and Loss Comparison of results for the period ended 31 December 2023 $m 1H24 1H23 $ • Total Revenue +18.1%: Revenue 1,134.0 955.4 178.6 ‒ Strong sector tailwinds driving revenue growth across Telco EBITDA 53.0 32.7 20.3 and Utility operations Depreciation & amortisation (21.6) (23.2) 1.
Slide 16: Cashflow
Cashflow Comparison of results for the period ended 31 December 2023 $m 1H24 1H23 Change $ • Exceptional H1 operating OCFBIT conversion of 111%: Underlying EBITDA from Operations 63.3 55.0 8.2 ‒ Continuing focus on working capital optimisation +/- non-cash items & change in working capital 5.9 (15.2
Slide 17: Balance Sheet & Capital Management
Balance Sheet & Capital Management Strong financial position supporting a material increase to the interim dividend $m Dec-23 • Return to net cash position 2 years post LLS acquisition (Nov 2021) Syndicated debt facilities 395.0 ‒ Reduction in debt well ahead of target (< 1.0x TLR in 2 years) Bondin
Slide 18: Group Outlook
Group Outlook 18
Slide 19: Profitable Growth
Profitable Growth Strong levels of WIH and a significant pipeline of growth opportunities across core markets Work In Hand Market Conditions • Business secured $1.2bn of work during 1H FY24 • Unprecedented levels of investment supporting the deployment and maintenance of critical infrastructure acro
Slide 20: Group Outlook
Group Outlook FY24 Outlook • Strong financial performance delivered in H1 setting the foundation for a positive full-year • Business successfully managing the inflationary environment well • Improved visibility across short and medium-term revenues, albeit no work volume guarantees remains a constan
Slide 21: FY24 H2 Priorities
FY24 H2 Priorities Creating long-term value for our Shareholders 1 Maintain industry leading safety performance Realise further improvements across Utility Division 2 earnings Delivery of full-year optimisation benefits currently 3 underway Securing further sustainable growth opportunities aligned 4
Slide 22: Appendices
Appendices 22
Slide 23: Reconciliation of statutory to adjusted profitability measures
1. Reconciliation of statutory to adjusted profitability measures Reconciliation of EBITDA from Operations to NPAT $m 1H24 1H23 $ Underlying EBITDA from Operations 63.3 55.0 8.2 Onerous contract provision for QLD Utility project (9.8) (20.1) 10.3 EBITDA from Operations 53.5 34.9 18.6 Joint venture a
Slide 24: Other information
2. Other information Reconciliation of Total Revenue to revenue $m 1H24 1H23 $ Total Revenue 1,173.8 993.6 180.2 Joint venture adjustments (39.8) (38.2) (1.6) Revenue 1,134.0 955.4 178.6 - - Amortisation of customer contracts & relationship Balance $m FY24 FY25 FY26 FY27 31 Dec 23 Comdain In
Slide 25: Disclaimer
Disclaimer This Presentation contains summary information about the current activities of Service Stream Holdings Limited (Service Stream). It should be read in conjunction with the Service Stream’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange