Slide 1: Service Stream Limited FY12 Results Presentation
Service Stream Limited FY12 Results Presentation For personal use only
Slide 2: Agenda
Agenda For personal use only 1. Results overview 2. Financial review 3. Strategy & outlook
Slide 3: Results Overview
Results Overview For personal use only Graeme Sumner Managing Director
Slide 4: Highlights: Financials
Highlights: Financials For personal use only EBITDA of $38.0m, up 10.0% on FY11 result. Increase in EBITDA margin from 5.5% to 6.4%. NPAT of $18.7m, up 13.8%. EPS of 6.60 cents, up 13.8%. Operating Cashflow result of $16.0m reflects resumption of tax payments. Declared a final dividend o
Slide 5: Highlights: Contracts
Highlights: Contracts For personal use only Syntheo won contracts with NBN Co for the design and construction of the National Broadband Network: – WA region, $174m over an initial two-year term, with options for a further two years, bringing the total potential value to $484m; and – SA/NT region,
Slide 6: FY12 builds on recent track record of consistent earnings growth
FY12 builds on recent track record of consistent earnings growth For personal use only Revenue ($m) Lost Time Injury Frequency Rate (per million hours worked) FY12 FY12 FY11 FY11 FY10 FY10 FY09 FY09 FY08 FY08 0 100 200 300 400 500 600 700 0.0 1.0 2.0 3.0 EBITDA ($m) Operating Cashflow ($m) FY12 FY12
Slide 7: Financial Overview
Financial Overview For personal use only Bob Grant Chief Financial Officer
Slide 8: Stronger operational results and lower average debt drive solid EPS growth
Stronger operational results and lower average debt drive solid EPS growth For personal use only Jun Jun Change Change $ million 2012 2011 $m % Revenue 592.2 633.3 (41.1) -6.5% EBITDA 38.0 34.6 3.5 10.0% EBITDA % 6.4% 5.5% 0.9% n/a EBIT 30.6 28.1 2.4 8.6% NPAT 18.7 16.5 2.3 13.8% Operating cash flow
Slide 9: Improved EBITDA margin offsets revenue reduction
Improved EBITDA margin offsets revenue reduction For personal use only Jun EBITDA Jun EBITDA Net Change 2012 % 2011 % change % Fixed Communications 300.2 326.9 (26.7) Mobile Communications 124.7 81.1 43.7 Energy & Water 169.1 232.4 (63.3) Inter-company revenue (2.2) (7.4) 5.2 Interest received 0.4 0
Slide 10: Fewer solar installs and loss of I&M impact revenue, partially offset by new NBN revenues
Fewer solar installs and loss of I&M impact revenue, partially offset by new NBN revenues and mobile growth For personal use only $ million 700 14.5 44.9 27.2 633.3 47.5 16.5 32.3 11.5 32.9 600 5.2 592.2 500 400 Jun 11 A&AS NBN Other Mobile Mobile Metering Environmental Customer Eliminations Jun 12
Slide 11: Working capital impacted by change in the mix of work
As expected, working capital has been impacted by a change in the mix of work For personal use only Working Capital % Jun Jun of Revenue $ million 2012 2011 20% Reported EBITDA 38.0 34.6 +/- change in working capital (10.5) (2.8) 15% OCFBIT1 27.6 31.8 Net tax paid (8.0) (1.6) Net interest paid (3.6)
Slide 12: Continued focus on cashflow and capital management pays dividends
Continued focus on cashflow and capital management pays dividends For personal use only Net Debt ($m) Leverage = 0.9x (Net Debt/EBITDA) FY12 FY11 FY10 FY09 Interest Cover = 7.8x FY08 (EBIT/Net interest 0 20 40 60 80 100 120 expense) Target debt of 1.0x to 1.5x EBITDA going forward. New $140m two
Slide 13: Strategy & Outlook
Strategy & Outlook For personal use only Graeme Sumner Managing Director
Slide 14: Service Stream: Who we are
Service Stream: Who we are For personal use only A leading provider of essential network services, including access, design, build, installation and maintenance. We operate principally in the essential networks of fixed telecommunications, mobile telecommunications, and energy & water. Blue ch
Slide 15: We've re-branded our divisions around three specialist brand names
We’ve re-branded our divisions around three specialist brand names… For personal use only 15
Slide 16: With all businesses on track for further growth
…with all businesses on track for further growth For personal use only NBN programs continue to ramp up. New Estates roll-out expected to reach 21,000 lots over Fixed the next 18 months. Communications Mobilisation of Syntheo progressing well, with 54 work- orders received across WA, SA and NT
Slide 17: NBN work orders received thus far
54 NBN work orders received thus far… Casuarina Darwin • 42 FSAM Design WA Transit Links 5 x Design For personal use only 3 x Design 3 x Design 1 x Construction • 5 FSAM Construction • 7 Transit Link Design Geraldton 5 x Design 1 x Construction NT Transit Links 3 x Design 1 x Construction South Pert
Slide 18: Strong medium term outlook
Strong medium term outlook Tender process for NBN Co’s brownfield work For personal use only packages 5 to 9 in the Eastern states is currently underway via Syntheo, valued at ~$1.6 billion. Demonstrated ability to secure large NBN-related contracts - Work Packages 2 & 3, New Developments. Tel
Slide 19: Questions?
For personal use only Questions?
Slide 20: Appendices
For personal use only Appendices
Slide 21: Group overview
Group overview SERVICE STREAM LIMITED (ASX:SSM) BOARD & MANAGEMENT For personal use only EBITDA (FY12) Peter Dempsey Chairman $38.0m EPS (FY12) Graeme Sumner Managing Director 6.60cps DPS (FY12) Stephe Wilks Non-Executive Director 2.00cps Net debt (Jun 2012) Brett Gallagher Non-Executive Director $3