Service Stream Limited · ASX:SSM
Service Stream — Shareholder Meeting (November 2008)
29 slides from Service Stream's shareholder meeting presentation, Nov 13, 2008
Slide 1: Annual General Meeting November 2008
For personal use only November 2008 Annual General Meeting
Slide 2: Agenda
For personal use only Agenda – Chairman’s Presentation – Meeting Resolutions – CEO’s Presentation 2
Slide 3: Chairman's Presentation
For personal use only Chairman’s Presentation
Slide 4: Highlights
For personal use only Highlights – Operating revenue up 82.3% to $450.6M – EBITDA up 75.6% to $37.2M – Reported NPAT up 61.1% to $18.1M – $1B Telstra AAS contract performing to expectations – Annualised revenues approaching $650M – $2B work-in-hand for next 4 years 4
Slide 5: Highlights
For personal use only Highlights – All business units performing profitably – Material organic growth opportunities in core infrastructure business streams – Strong balance sheet and capacity to fund growth – Full year DPS maintained at 7.5 cents – Positive FY09 outlook 5
Slide 6: The story so far…
For personal use only The story so far… – Consolidation of nine major acquisitions over 4 years – Growth turnover from $60.6M to $450.6M – Growth in net profit after tax from $0.6M to $18.1M – Growth in workforce from 1,500 to over 4,000 people – Growth in national footprint from 11 to 52 sites 6
Slide 7: Business of the Meeting
For personal use only Business of the Meeting
Slide 8: Resolution: Remuneration Report
Resolution 1 For personal use only “That the Remuneration Report for the year ended 30 June 2008 be adopted.” 8
Slide 9: Resolution: Re-election of Adrian James Field
Resolution 2 For personal use only “That Adrian James Field who retires by rotation in accordance with rule 7.1(f) of the Company’s constitution and, being eligible, stands for re-election, be re-elected as a director of the Company.” 9
Slide 10: Resolution: Re-election of Rodney Allen Stanton
Resolution 3 For personal use only “That Rodney Allen Stanton who retires by rotation in accordance with rule 7.1(f) of the Company’s constitution and, being eligible, stands for re-election, be re-elected as a director of the Company.” 10
Slide 11: Resolution: Share issue approval
Resolution 4 For personal use only “That the issue of 4,110,576 fully paid ordinary shares in the Company on the terms set out in the explanatory statement accompanying the notice of this meeting, be approved for the purpose of rule 7.4 of the ASX Listing Rules.” 11
Slide 12: Managing Director & CEO's Presentation
For personal use only Managing Director & CEO’s Presentation
Slide 13: Agenda
For personal use only Agenda – Year in Review - Financial Overview - Group Milestones and Overview – 2009 Business Overview – Drivers for Growth – Future Outlook 13
Slide 14: Year in Review: A Record Performance
For personal use only Year in Review A Record Performance Revenue ($M) EPS (cents) EBITDA ($M) $450.6M 500 60 12 10.66 10.98 450 50 10 400 $37.2M 350 40 8 6.97 $247.1M 300 250 30 6 $171.0M $21.2M 200 20 4 150 2.58 $8.7M $60.6M 100 10 2 $2.3M 50 0 0 0 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 FY05 FY06
Slide 15: Year in Review: Financial highlights to June 2008
For personal use only Year in Review Financial highlights to June 2008 $450.6M Revenue up 82.3% – Full Year Dividend maintained at 7.5cps – Business portfolio enhanced and market leading positions strengthened – Positioned for continued strong growth in 2009 $37.2M EBITDA up 75.6% – Well positioned
Slide 16: Year in Review: Financial Summary
Year in Review Financial Summary For personal use only Reported Result FY 2008 FY 2007 % change Revenue $450.6M $247.1M 82.3% EBITDA $37.2M $21.2M 75.6% EBIT $30.6M $18.5M 65.0% NPAT $18.1M $11.2M 61.1% Earnings per share 10.98cps 10.66cps 3% Full year dividend 7.5cps 7.5cps - 16
Slide 17: Year in Review: Balance Sheet
Year in Review Balance Sheet For personal use only A solid platform for growth 30 June 2008 30 June 2007 $ million Receivables and WIP 136.5 80.3 Plant and equipment 20.2 5.2 Other 17.2 7.7 Goodwill 206.4 155.7 Total Assets 380.3 248.9 Payables 79.9 70.0 Net debt 93.5 30.2 Provisions and other 9.5 9
Slide 18: Year in Review: Capital Structure
Year in Review Capital Structure For personal use only 30 June 2008 30 June 2007 $ million Net debt 93.5 30.2 Equity 197.4 139.3 Net debt to equity ratio 47.3% 21.7% Equity – $40M capital raising completed in Sept 07 Debt – Funding secured for the next 2 years – New terms more favourable than previo
Slide 19: Year in Review: Contract & Group Milestones
For personal use only Year in Review Contract & Group Milestones $1BN Telstra Access and Associated – $1BN Telstra Access and Associated Services contract tracking well Services contract awarded Sept 07 – AMRS contract renewals extend Service Stream’s presence in utilities sector $23M AMRS contract
Slide 20: Year in Review: Group Overview
Year in Review Group Overview For personal use only 52 locations Workforce of over 4000 Market leader in telecommunications - copper, wireless, fibre Achieving diversification strategy Strong order book Strong pipeline Balance sheet capacity 20
Slide 21: 2009 Operational Overview
2009 Operational Overview For personal use only Contact Centre Vodafone Optus DNCR Field Services - TOW Infrastructure Services - Utilities AAS Contract McCourt Dando Payphones Contract Recoverable Works Labour Services AMRS Metering Services Infrastructure Services - Telco TCI GPG Source: Company B
Slide 22: Drivers for Growth: New Contracts
For personal use only Drivers for Growth 1 New Contracts Service Stream has significant competitive advantages – Telstra AAS – Vodafone wireless build – Telstra wireless build – SA Water metering – APA metering services – Sydney desalination plant 22
Slide 23: Drivers for Growth: Acquisitions
For personal use only Drivers for Growth 2 Acquisitions Service Stream has a track record of successfully integrating acquisitions Power, water, gas Australia’s leading metering services provider AMRS Strong position for roll-out of Smart Metering Serviceworks Metering Power Alinta sub metering asse
Slide 24: Drivers for Growth: Major Opportunities
Drivers for Growth 3 Major Opportunities For personal use only SSM is well positioned to capitalise on major public and private sector infrastructure projects Est. Project Description Spend Capabilities National – Rollout of the new open access, high speed $10B 3Existing capability through Fibercom
Slide 25: Drivers for Growth: Infrastructure Outsourcing
Drivers for Growth 4 Infrastructure Outsourcing For personal use only Key Drivers Forecast Outsourced Expenditure – Construction & Maintenance $B $20 Lack of historical investment $15 Competitive efficiencies ongoing trend $10 Comm’s base line Comm’s NBN Ownership Changes Gas Electricity $5 Water su
Slide 26: Outlook
For personal use only Outlook Management is excited by the growth prospects of all divisions – Ongoing focus on delivery of major contracts – Strong organic growth to continue – Continue to execute and integrate strategic acquisitions – Drive organic growth in utilities sector – Appropriate capital
Slide 27: Investment Overview (Reminder)
For personal use only Investment Overview (Reminder) – Long term business objectives – Execution of consistent strategy focussing on essential infrastructure - Establish strong capability in telecommunications - Aim for Opex / Capex split of around 70% / 30% - Grow business organically and through a
Slide 28: Customer Partnerships
Customer Partnerships For personal use only 28
Slide 29: Important Notice - Disclaimer
For personal use only Important Notice - Disclaimer This presentation has been prepared by the management of Service Stream Limited (the ‘Company’) for the benefit of our shareholders, brokers, analysts and investors and not as specific advice to any particular party or person. Neither the Company,