SERVICE STREAM LIMITED — AGM Information 2013

Oct 22, 2013

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Service Stream Limited Executive Director’s AGM Presentation

Brett Gallagher 23 October 2013

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Overview Financial

• FY13 Revenue $527m ($66m) from FY12

• A disappointing FY13 with EBITDA loss of ($13.4m) ($51.4m) from FY12

• Fixed Communications’ EBITDA loss of ($32m) includes ($19.9m) relating to SSM’s share of the Syntheo Joint Venture

• Mobile Communications and Energy & Water both delivered improved results in line with expectation

• Net Debt $52m ($10.2m) from June 12

• Operating Cashflow $3.2m ($12.8m) from FY12

• Fixed Communications’ goodwill written-down by ($89.8m)

• No final dividend declared for FY13

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Refer to the Financial Statements for Y/E 30 June 2013 for further details on the results for the year, SSM’s agreement with its Syntheo Joint Venture partner, and the banking refinance.

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Overview Operational

• New arrangements with NBN Co and joint venture partner limit future exposure to Syntheo

• Key leadership changes made within Executive Team & the Fixed Communications Division

• Banking refinance secured out to 31 August 2014

• Appointment of Terry Sinclair as Managing Director - effective 6 November 2013

• Growth in Mobile Communications and Energy & Water segments

• Improved Safety Performance – Auditing & Reporting

• Staff salaries held at FY13 level

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FY14 outlook

• No EBITDA impact of Syntheo in FY14 and agreed contributions have been factored into cash forecast

• Fixed Communications’ recent success in winning a number of Telstra and NBN contracts will provide a solid platform for FY14 … ongoing focus on division re-structure, cost control and contract execution

• Mobile Communications has secured a 2 year extension of its SAED contract with Telstra and is well placed for Construction growth in FY14

• Energy & Water is confident of securing extensions to various metering contracts that expire in FY14. The division also expects to extend its relationship with Origin Energy for in-home-services

• Board is confident of returning to a solid profitable position in FY14 anticipating EBITDA of around $20m with a heavy bias to second half

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Our business’ medium term prospects are strong

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� Australian government’s investment in NBN will
continue to drive opportunities, particularly in the
Fixed
areas of SSM’s proven competence of New Estates
Communications
and Customer Connections.
� Increasing demand for mobile data will continue to
Mobile drive the development and augmentation of the
Communications necessary supporting infrastructure.
� Upward pressure on energy prices will continue to
drive consumers to manage the consumption of
energy more effectively, creating opportunities in
Energy & Water
smart metering, solar PV, hot water and heating etc.
�
Owners of ageing energy networks will seek better
demand side management solutions.
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Questions?

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