Service Stream Limited · ASX:SSM
Service Stream — Shareholder Meeting (October 2024)
28 slides from Service Stream's shareholder meeting presentation, Oct 23, 2024
Slide 1: 2024 Annual General Meeting
Service Stream 2024 Annual General Meeting
Slide 2: Acknowledgment of Country
Acknowledgment of Country Service Stream acknowledges the traditional custodians of country throughout Australia and their continuing connections to land, water and communities. We pay our respects to their elders past and present
Slide 3: Board of Directors
Board of Directors Brett Gallagher Leigh Mackender Chairman Managing Director Martin Monro Elizabeth Ward Sylvia Wiggins Independent Independent Independent Non-executive Director Non-executive Director Non-executive Director 3
Slide 4: Voting and Questions Process
Voting and Questions Process Voting General • Voting will be conducted by poll on all items of business Question Process • Questions will be responded to at the conclusion of the formal business • Questions will be taken from those present at the meeting, or submitted in writing prior 4
Slide 5: Chairman's Address
Chairman’s Address 5
Slide 6: Maintaining Australia's critical infrastructure
ASX 300 listed entity Maintaining Australia’s critical infrastructure Group revenue FY24 Market Capitalisation Revenue secured with federal or state governments Strategically located across Employee workforce Specialist subcontractors all states and territories Property / service visits per annum Pl
Slide 7: Managing Director's Address
Managing Director’s Address 7
Slide 8: FY24 Financial Highlights
FY24 Financial Highlights Exceptional financial results across all key metrics Total Revenue Underlying EBITDA $ 2,392m $ 129.2m Increase of 11.2% up on pcp Increase of 13.2% on pcp NPATA Cashflow Conversion $ 50.1m 101.6% Increase of 36.4% on pcp OCFBIT Net Cash FY24 Total Dividend $ 7.9m 4.5 cps 8
Slide 9: Major Contract Renewals and New Business
Major Contract Renewals and New Business Secured $2.2bn in major multi-year agreements, further enhancing a diversified portfolio Secured Contract Works \ \ \ \ $2.2bn Retaining 97% of contracts which Multinet Optus South East Water Energy Queensland proceeded to market Victorian Maintenance Nationa
Slide 10: High Quality Diversified Revenues
High Quality Diversified Revenues Positive work mix aligned to the Group’s growth strategy and risk appetite Work Type Commercial Models • Group’s revenue profile biased to annuity style, lower-risk maintenance agreements 2% 20% 30% ‐ Multi-year O&M operations now reflecting ~70% (63% in FY23) of 6%
Slide 11: Safety Performance
Safety Performance Continuing to deliver industry leading safety performance • 23% reduction in High Potential Incidents • Increased investment and proactive leadership driving several initiatives: ‒ Service Stream Safety Leadership Model ‒ Critical Control awareness program across higher-risk work
Slide 12: Our Strategy Delivering Results
Our Strategy Delivering Results To be Australia’s Leading Essential Network Services Provider Improved financial performance and strong balance 1 DELIVERY sheet Superior service solutions and delivery excellence 2 Extended capabilities and dependable operational performance for our valued clients OP
Slide 13: Creating significant shareholder value
Creating significant shareholder value The acquisition and integration of Lendlease Services has dramatically changed the Group’s profile Total Revenue ($m) EBITDA from Operations ($m) EPS-A ($m) CAGR 9.6% CAGR 17.3% 129 CAGR 43.8% 8.2 2,392 114 2,151 91 6.2 6.0 80 5.3 1,564 804 FY21 FY22 FY23 FY24
Slide 14: Profitable Growth
Profitable Growth Exposure to continued investment across key markets and an opportunity to increase future market share Addressable maintenance market $AU billion • Strong levels of investment from Government and private asset owners and operators driven by: +3.5 CAGR% 60.7 59.0 57.4 • Ageing infra
Slide 15: FY25 Trading Update
FY25 Trading Update Strong FY24 results and solid pipeline of opportunities providing positive momentum in FY25 • Group trading performance during Q1 in-line with Management’s expectations • ~85% of WIH for FY25 secured under contract or extension options • Continuing to enhance the Group’s quality
Slide 16: Questions
Questions 16
Slide 17: Formal Business of the Meeting
Formal Business of the Meeting 17
Slide 18: Resolution 1
Resolution 1 Adoption of remuneration report To consider and if thought fit, pass the following resolution as an ordinary resolution: “That the remuneration report for the year ended 30 June 2024 be adopted.” Note: The remuneration report is set out on pages 23 to 45 of the Company’s 2024 annual rep
Slide 19: Resolution 1 Proxy Position
Resolution 1 Proxy Position Resolution 1 - Adoption of remuneration report In Favour Against Open Usable* 415,101,485 3,874,344 780,566 *Open Usable Proxy Votes are available to the Chairman 19
Slide 20: Resolution 2
Resolution 2 Re-election of Elizabeth Ward To consider and if thought fit, pass the following resolution as an ordinary resolution: “That Elizabeth Ward (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
Slide 21: Resolution 2 Proxy Position
Resolution 2 Proxy Position Resolution 2 – Re-election of Elizabeth Ward In Favour Against Open Usable* 400,211,713 20,285,337 801,445 *Open Usable Proxy Votes are available to the Chairman 21
Slide 22: Resolution 3
Resolution 3 Acquisition of securities by Leigh Mackender under the FY25 Tranche of the Company’s Short-Term Incentive Plan To consider and if thought fit, pass the following resolution as an ordinary resolution: “That for the purpose of ASX Listing Rule 10.14 and for all other purposes, approval is
Slide 23: Resolution 3 Proxy Position
Resolution 3 Proxy Position Resolution 3 – Acquisition of securities by Leigh Mackender under the FY25 Tranche of the Company’s Short-Term Incentive Plan In Favour Against Open Usable* 416,479,926 3,908,664 780,647 *Open Usable Proxy Votes are available to the Chairman 23
Slide 24: Resolution 4
Resolution 4 Acquisition of securities by Leigh Mackender under the FY25 Tranche of the Company’s Long-Term Incentive Plan To consider and if thought fit, pass the following resolution as an ordinary resolution: “That the acquisition by Leigh Mackender of 577,801 performance rights under the FY25 Tr
Slide 25: Resolution 4 Proxy Position
Resolution 4 Proxy Position Resolution 4 – Acquisition of securities by Leigh Mackender under the FY25 Tranche of the Company’s Long-Term Incentive Plan In Favour Against Open Usable* 418,674,061 1,716,731 795,637 *Open Usable Proxy Votes are available to the Chairman 25
Slide 26: Proxy Position for all Resolutions
Proxy Position for all Resolutions Resolutions In Favour Against Open Usable* Resolution 1 - Adoption of remuneration report 415,101,485 3,874,344 780,566 Resolution 2 – Re-election of Elizabeth Ward 400,211,713 20,285,337 801,445 Resolution 3 – Acquisition of securities by Leigh Mackender under the
Slide 27: Questions
Questions 27
Slide 28: www.servicestream.com.au
ServiceStream www.servicestream.com.au