Service Stream Limited · ASX:SSM
Service Stream — H1 2007 Earnings Presentation
16 slides from Service Stream's earnings presentation, March 2007
Slide 1: Half Year Results Presentation
Half Year Results Presentation March 2007
Slide 2: Agenda
Agenda y Results Highlights y Financial Summary y Group Overview y Outlook
Slide 3: Highlights - Half-year to Dec 2006
Highlights - Half-year to Dec 2006 y Record earnings performance y Revenue up 20.4% to $96.1M y EBITDA up 52.8% to $6.2M y NPAT up 75.6% to $3.3M y Market Capitalisation exceeds $200M y Increased fully franked interim dividend of 3.0 cents per share y Growth through acquisitions and organic growth y
Slide 4: Half Year in Review
Half Year in Review Aug 06 Acquired Fibercom Aug 06 Vodafone contract extension and expansion Jan 07 Completes merger with TCI Jan 07 Cancels 40.3M shares Jan 07 Acquired General Purpose Group Feb 07 Awarded Do Not Call Register contract
Slide 5: Financial Summary - Reported Result
Financial Summary - Reported Result HY 2006* HY 2005 % change Revenue $96.1M $79.8M +20.4% EBITDA $6.2M $4.0M +52.8% EBIT $5.2M $3.3M +57.2% NPAT $3.3M $1.9M +75.6% Earnings Per Share 4.67 cps 3.43 cps +36.2% Interim Dividends 3.0 cps 0.75 cps +300.0% * HY 2006 results do not include any earnings fo
Slide 6: Financial Summary - Pro Forma Result
Financial Summary - Pro Forma Result HY 2006* HY 2005 % change Revenue $138.5M $79.8M +73.6% EBITDA $14.5M $4.0M +262.5% EBIT $13.3M $3.3M +303.0% NPAT $7.9M $1.9M +315.8% * HY 2006 Pro forma results assumes TCI was acquired on 1 July 2006
Slide 7: Continued Strong Growth
Continued Strong Growth Half-year Revenue / EBITDA (Pro Forma Dec 06) 190 Nov 2004 Feb 2005 Jan 2006 Aug 2006 Jan 2007 Acquired Acquired operating Acquired Acquired Merger Skilled Communications business of Milcom Fibercom TCI Ltd 170 Services Pracom Limited Technology Proforma result 150 138.5 130
Slide 8: Continued Strong Growth
Continued Strong Growth EBITDA $m (Pro Forma Dec 06) EBITDA % Margin (Pro Forma Dec 06) 16 14.5 14 10.46% 12 10 8 5.12% 4.95% 5.08% 6 4.7 4.1 4 2.4 2 0 0. 00% Jun-05 Dec-05 Jun-06 Dec-06 Jun-05 Dec-05 Jun-06 Dec-06
Slide 9: Balance Sheet
Balance Sheet $ million 31 Dec 30 Jun 31 Dec 30 Jun 2006 * 2006 2006 * 2006 Cash 9.0 2.0 Payables & provisions 41.3 23.6 Receivables & WIP 55.2 33.0 Borrowings 38.3 6.5 Fixed Assets 5.7 4.4 Non-current liabilities 9.7 0.6 Other 6.1 1.4 Goodwill 148.2 18.6 Total Assets 224.2 59.4 Total Liabilities 89
Slide 10: Status Report – Service Stream Group
Status Report – Service Stream Group y 2,100 staff and 22 branches nationally providing: - Outsourced field force management - Technical support - Customer assistance - Asset management services y Core operating divisions – Communications and Solutions y Telecommunications sector focus y Solid platf
Slide 11: National Coverage – Service Stream Group
National Coverage – Service Stream Group Service Stream Brsibane y 22 Locations Geebung y Over 2,100 Staff TCI y Telecommunications Brisbane industry managed Service Stream services Service Stream North Sydney Welshpool Silverwater specialist North Ryde y Fixed line and GPG wireless expe
Slide 12: Business Streams
Business Structure Service Stream Limited (SSM) STR STR Milcom TCI Fibercom GPG Business Streams Communications Solutions Technology Labour Services Embedded Communications Commissioning Recoverable works Wireless Technology Training technology Installation & Solutions Installation Maintenance Maint
Slide 13: TCI – Clients / Projects
TCI – Clients / Projects y Vodafone – National responsibility for 2G and 3G rollout (Acquisition & Build) y Completing Adelaide & Perth 3G rollout.2G works across all regions y Telstra – Design, Construct, Installation & Commissioning - National y Design & build activity across all States y Motorola
Slide 14: TCI – Clients / Projects
TCI – Clients / Projects y Austar – Eastern States –Regional Wireless Broadband rollout (Turnkey) y Commercial rollout progressing – approx 100 sites. Additional sites from Broadband y Connect funding will be known mid June 2007 y Ericsson – 3G 850Mhz upgrade on Telstra network –Qld y Main project c
Slide 15: Outlook
Outlook y Continued organic growth y Ongoing vertical integration y Broadening infrastructure roll-out capability y Expanding into similar verticals y Continue to seek out sensible acquisitions
Slide 16: Interim Results Presentation
Interim Results Presentation March 2007