Slide 1: FY16 Results Presentation
Service Stream Limited For personal use only FY16 Results Presentation Leigh Mackender Managing Director 17 August 2016
Slide 2: Group Highlights
Group Highlights For personal use only EBITDA of $35.8m (up 41% on FY15) Group NPAT of $20.0m Financial Strong balance sheet, increased cash on hand to $41.1m, maintained zero debt 5.0 cps capital return completed in June Declared increased final dividend of 1.50 cents per share (fully-fra
Slide 3: Group Performance
Business Units For personal use only Update Group Performance
Slide 4: Financial Highlights
Financial Highlights For personal use only Steady revenue growth across all three business units $438.9m Revenue influenced by increasing move to client-supplied Revenue up from $411.3m in FY15 materials across key contracts 2H16 is the sixth consecutive half-year delivering EBITDA $35.8m gr
Slide 5: Key Financial Measures
Key Financial Measures For personal use only $m Group Revenue ($m) $250 215.0 217.1 221.9 213.8 197.4 $200 174.6 Key financial measures $150 $100 $ million FY16 FY15 Change $50 Revenue 438.9 411.3 27.7 7% $0 EBITDA 35.8 25.4 10.4 41% 1H14 2H14 1H15 2H15 1H16 2H16 EBITDA % 8.2% 6.2% 2.0% n/a Net prof
Slide 6: Segment Results
Segment Results For personal use only $m Group EBITDA ($m) $25 20.1 $20 15.7 14.7 $15 Segment results 10.7 9.0 $10 7.5 $ million FY16 FY15 Change $5 Fixed Communications 192.8 180.6 12.1 $0 Mobile Communications 166.7 154.0 12.6 1H14 2H14 1H15 2H15 1H16 2H16 Energy & Water 82.0 77.3 4.7 Eliminations
Slide 7: Cashflow Results
Cashflow Results For personal use only $m Operating Cashflow ($m) $35 31.8 30.8 31.5 $28 Cashflow results $21 14.8 $14 10.1 $ million FY16 FY15 Change $7 0.5 EBITDA 35.8 25.4 10.4 $0 1H14 2H14 1H15 2H15 1H16 2H16 +/- non-cash items and change in working capital 27.9 8.6 19.3 1 OCFBIT 63.7 34.0 29.7
Slide 8: Capital Management
Capital Management For personal use only Strong cashflow performance for year assisted by: Working Capital (% of annualised Revenue) 25% - wind-up of certain programs of work and mobilisation of new 20% 17.7% 17.9% contracts within Fixed Communications 15.3% 15% 12.6% - relentless focus on working
Slide 9: Operational Performance
Operational Performance For personal use only Lost Time Injuries Continued to deliver improved HSE performance across all major 3.5 performance metrics: 3 2.90 2.5 - Lost Time Injury Frequency Rate of 0.83 (down from 1.23) 2 1.5 1.23 - Total Recordable Injury Frequency Rate of 4.61 (down from 17.3
Slide 10: Operational Performance … continued
Operational Performance … continued For personal use only Mobile Communications has diversified its client-base and delivery of initial works has commenced: - Nokia Networks (work on Optus’ wireless network) - NSW Telco Authority - PIPE Networks (part of the TPG group) - Axicom (previously known a
Slide 11: Business Unit Performance & Update
Business Units For personal use only Update Business Unit Performance & Update
Slide 12: Fixed Communications
Fixed Communications For personal use only FY16 Highlights Revenue ($m) $125 96.4 95.0 97.7 Significant progress in further improving the “works-to-cash” $100 84.3 cycle and reducing ongoing working capital requirements $75 55.7 $50 42.7 $25 Mobilisation of new Operations & Maintenance contract
Slide 13: Fixed Communications … continued: FY17 Priorities
Fixed Communications … continued For personal use only FY17 Priorities Continued mobilisation of Operations & Maintenance contract with nbn as FTTN and HFC network deployment increases Scaling of resources to meet increased FTTN construction program secured for delivery during FY17 Recruitment
Slide 14: Mobile Communications
Mobile Communications For personal use only FY16 Highlights Revenue ($m) $125 99.2 $100 85.0 Increased client-base and revenue diversity across the 67.7 72.5 81.5 81.7 $75 wireless and recoverable works operations: $50 - Nokia Networks, NSW Telco Authority, PIPE Networks, Axicom $25 $0 1H14 2H14 1
Slide 15: Mobile Communications … continued: FY17 Priorities
Mobile Communications … continued For personal use only FY17 Priorities Enhancement and expansion of internal delivery teams, to support a multi-client operating environment Mobilisation and bolstering of additional personnel to support recently expanded client base Continue working with key c
Slide 16: Energy & Water
Energy & Water For personal use only FY16 Highlights Revenue ($m) $100 73.5 $75 Effective mobilisation of new contract with AGL’s Active 50.7 43.8 Stream - installing 40,000+ electricity smart meters $50 40.9 36.3 38.2 $25 Completed 2,445 residential & commercial Solar PV $0 1H14 2H14 1H15 2H15
Slide 17: Energy & Water … continued: FY17 Priorities
Energy & Water … continued For personal use only FY17 Priorities Scale smart metering operations in SA, QLD and NSW to support increased installation volumes Increase commercial solar pv operations through a wider customer base Continue to build credentials and work pipeline with customers to
Slide 18: Group Strategy & Outlook
Business Units For personal use only Update Group Strategy & Outlook
Slide 19: Group Strategy
Group Strategy Continue to deliver against our strategic plan during FY17 by focusing on the fundamentals of our business For personal use only Client Mature Securing Service relationships operating Our people growth delivery model opportunities UNLOCK REFINE EXTEND value from existing and refine ou
Slide 20: Outlook
Outlook For personal use only The Group is focussed on delivering earnings growth in FY17, subject to anticipated customer demand and ongoing success in mobilising recently-secured contracts FY17 key priorities: – Continue to effectively mobilise the Operations & Maintenance contract with nbn, a