Slide 1: FY08 Presentation
For personal use only August 2008 FY08 Presentation
Slide 2: Agenda
For personal use only Agenda –FY08 Results Highlights –Group Overview –Operational Overview –Financial Summary –Outlook 2
Slide 3: Highlights - Full year to June 2008
For personal use only Highlights - Full year 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 to continue growth in 2009 with $37.2M baseline growth of 30% –Well positioned to capitalise
Slide 4: A Record Performance
A Record Performance For personal use only Revenue ($M) EPS (cents) EBITDA ($M) $650.0M 700 60 12 10.66 10.98 CAGR CAGR CAGR $48.0M 600 60.7% 43.6% 50 83.6% 10 $450.6M $37.2M 500 40 8 6.97 400 30 6 $247.1M $21.2M 300 $171.0M 20 4 200 2.58 $8.7M $60.6M 10 2 100 $2.3M 0 0 0 FY05 FY06 FY07 FY08 FY09 FY
Slide 5: Group Overview
Group Overview For personal use only 52 locations Workforce of 4000 Market leader in telecommunications - copper, wireless, fibre Achieving diversification strategy Strong order book - 2009 guidance locked in - Revenue $650M - EBITDA $48M Strong pipeline Balance sheet capacity 5
Slide 6: Operational Overview
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 Fibercom 6
Slide 7: 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 –Gold Coast desalination plant –Sydney desalination plant 7
Slide 8: 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 Australia’s leading metering services provider AMRS Strong position for roll-out of Smart Metering Serviceworks Power Alinta sub metering assets Power McC
Slide 9: 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 Fiberco
Slide 10: 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
Slide 11: Financial Summary
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 - 11
Slide 12: Balance Sheet
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 9.4 Total Liabil
Slide 13: Operating Cash Flow
Operating Cash Flow For personal use only A Year of Investment 30 June 2008 30 June 2007 $ million Net profit after tax 18.1 11.2 Depreciation and amortisation 6.7 2.7 Working capital movement (57.9) (7.4) Gain on sale of investments - (1.3) Operating cash flow (33.1) 5.2 Investment - 1.6 Capital ex
Slide 14: Capital Structure
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 previous – Unused fac
Slide 15: 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 manag
Slide 16: 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 brokers, analysts and investors and not as specific advice to any particular party or person. Neither the Company, nor any of its off