Slide 1: HY09 Presentation
For personal use only February 2009 HY09 Presentation
Slide 2: Agenda
For personal use only Agenda –2009 Half Year Results Highlights –Financial Summary –Operational Overview - Segment Review –Group Overview –Outlook 2
Slide 3: Highlights – Half Year to December 2008
For personal use only Highlights – Half Year to December 2008 $277.4M –Record revenue and EBITDA levels Revenue up 39.3% –Interim Dividend maintained at 3.5cps –Revenue and earnings growth continues in spite $15.3M EBITDA up 12.1% of the current global economic conditions. –Renewal and extension of
Slide 4: Contract Highlights
For personal use only Contract Highlights –AAS contract achieving all expectations –Contract renewals - SA Water (5 year metering services) - APA Group (5 year gas meter services) –Contract wins - Sydney Water (2 year + 6 year option metering maintenance) - Ipswich motorway (Multi-utility relocation
Slide 5: Financial Summary
Financial Summary For personal use only Reported Result 40 HY 2009 HY 2008 % change 35 Revenue $277.4M $199.1M 39.3% 30 EBITDA $15.3M $13.6M 12.1% $ 2 2 .7 M 25 $ 2 3 .6 M 2HY 1HY EBIT $11.7M $10.8M 8.0% $M 20 NPAT $6.6M $6.6M 0.5% 15 $ $ 15 .6 M Earnings per share 3.74cps 4.17cps (10.3%) 10 1 5 $ 1
Slide 6: Balance Sheet
Balance Sheet For personal use only A solid platform for growth 31 Dec 2008 30 June 2008 $ million Receivables and WIP 138.2 136.5 Plant and equipment - WDV 18.8 20.2 Inventory 14.9 11.4 Other 7.9 5.8 Goodwill 206.4 206.4 Total Assets 386.2 380.3 Payables 56.4 79.9 Net debt 119.0 93.5 Provisions and
Slide 7: Operating Cash Flow
Operating Cash Flow For personal use only Investing for the future 6 months to 12 months to $ million 31 Dec 2008 30 June 2008 Net profit after tax 6.6 18.1 Operating cash flow (15.2) (33.1) Source: Company data 7
Slide 8: Cash Flow Forecast
Cash Flow Forecast For personal use only Investing for the future 6 months to 6 months to $ million 30 June 2009 31 Dec 2008 Operating cash flow 17.3 (15.2) Investing cash flow (3.5) (5.1) Financing cash flow (5.5) (5.2) Net Debt 110.7 119.0 Gearing ratio (EBITDA to Net Debt) 2.9 3.2 Interest Cover
Slide 9: Capital Structure
Capital Structure For personal use only 31 Dec 2008 30 June 2008 $ million Net debt 119.0 93.5 Equity 203.0 197.4 Net debt to net debt plus equity 36.9% 32.2% Financing facilities – Funding secured to October 2010 – Sufficient headroom in covenants to fund growth – Unused facilities of $44M 9
Slide 10: Segment Results – Revenue Summary
Segment Results For personal use only Revenue Summary HY 2009 HY 2008 % change Contact Centre Solutions $34.0M $35.3M (3.6%) Tickets of Work $156.7M $99.1M 58.1% Infrastructure Services $85.9M $64.3M 33.6% Source: Company data 160 140 120 100 Contact Centre Solutions $M 80 Tickets of Work 60 Infrast
Slide 11: Segment Results – Contact Centre Solutions
Segment Results For personal use only Contact Centre Solutions HY 2009 HY 2008 % change Revenue $34.0M $35.3M (3.6%) EBITDA $2.9M $2.0M 45.0% EBIT $1.9M $0.9M 111.1% Source: Company data Comments – Revenue constant with good visibility – Strong cost focus and contract management 11
Slide 12: Segment Results – Tickets of Work
Segment Results For personal use only Tickets of Work HY 2009 HY 2008 % change Revenue $156.7M $99.1M 58.1% EBITDA $12.1M $8.6M 40.7% EBIT $11.1M $8.0M 38.7% Source: Company data Comments – Strong revenue growth and good visibility – Long term contracts – AAS & AMRS 12
Slide 13: Segment Results – Infrastructure Services
Segment Results For personal use only Infrastructure Services HY 2009 HY 2008 % change Revenue $85.9M $64.3M 33.6% EBITDA $4.5M $6.1M (25.0%) EBIT $3.3M $4.9M (32.2%) Source: Company data Comments – Strong revenue growth – Comprehensive review and action plan implemented for McCourt Dando business 1
Slide 14: Quality and People
Quality and People For personal use only • Strategic investment achieves successful re-certification of Safety 4801, Quality 9001 and Environmental 14001 Management Systems. • 300+ managers and supervisors trained on safety/environmental duty of care and risk assessment. • Continued quality, safety
Slide 15: Group Overview
Group Overview For personal use only 52 locations Workforce of over 4000 Market leader in telecommunications - copper, wireless, fibre Achieving diversification strategy - electricity, gas, water Strong order book - 2009 guidance - Revenue approaching $600M - EBITDA $38M Strong pipeline Balance shee
Slide 16: Outlook
Outlook 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 Existing capability through Fibercom and GPG Broadband Network fibre ba
Slide 17: Outlook - Infrastructure Outsourcing
Outlook - 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 supply & stor
Slide 18: Outlook – second half
For personal use only Outlook – second half Management remains confident 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 –Reco
Slide 19: Customer Partnerships
Customer Partnerships For personal use only 19
Slide 20: 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