SERVICE STREAM LIMITED — Earnings Release 2018

Aug 14, 2018

Service Stream Limited

FY18 Results Presentation

Leigh Mackender Managing Director

15 August 2018

Contents

• Performance Highlights
• Financial Performance
• Operational Performance
• Group Strategy & FY19 Outlook
• Historical Financial Performance Data

Company Profile

Service Stream Limited (ASX: SSM) is a S&P/ASX 300 company providing design, construction, installation and maintenance services across essential infrastructure networks within the Telecommunication and Utility sectors

Performance Highlights

	FY18EBITDAof$67.3m…up39%onFY17
Financial	FY18NPATof$41.1m…up45%onFY17
	FY18EPSof11.29cps…up45%onFY17
	SolidcashgenerationleadingtoNetCashof$73.0mat30-Jun-18
	Increasedfinaldividendto4.5centspershare(fully-franked)
	Maintainedindustry-leadingperformanceacrossHSEmetrics
Operational	Furtherincreasedshareofnbncustomeractivations…andfurtherincreaseinnbn'maintenance'activitiesasnetworkexpands
	Securedmultiplenewfieldserviceagreementswithutilityassetowners,providingfuturegrowthofannuity-stylerevenues
	SolidpipelineofcontractedrevenuetosupportgrowthintoFY19
	Continued focus on 'execution and delivery' to support growth in annuity-stylenetwork maintenance activities under the nbn OMMA contract
	Leading national provider of wireless network design and construction services
Strategic	Technology-agnostic to take advantage of increasing investment across both fixedline and wireless technologies
	Identification of external expansion and diversification opportunities continuing

FINANCIAL PERFORMANCE

Financial Highlights

$632.9m

Revenue up from $501.8m in FY17

$67.3m EBITDA up from $48.4m in FY17

$41.1m NPAT up from $28.4m in FY17

11.29cps EPS up from 7.78cps in FY17

$73.0m Net Cash up from $49.9m at Jun-17

• Revenue up 26% … with growth delivered across all three operating segments relative to the prior corresponding period (FY17)

• 2H18 is the tenth consecutive half-year delivering growth in each of EBITDA, EBIT, NPAT and EPS

• Improvement in EBITDA and EBIT margins relative to FY17

• NPAT up 45% on FY17 in line with increase in EBITDA

• EPS growth of 45% over FY17

• Final dividend of 4.5 cps (fully-franked) up 50% on 2H17

• Continued working capital improvements produced an EBITDA-to-OCFBIT conversion of 148% for the year

• Operating Cashflow of $79.7m up $29.0m on FY17

Key Financial Measures

10th consecutive half-year delivering improvement across key profit measures

$ million	FY18	FY17		Change
Profitability:
Revenue	632.9	501.8	131.1	26%
EBITDA	67.3	48.4	18.9	39%
EBITDA %	10.6%	9.6%	1.0%
EBITA	63.9	45.3	18.5	41%
EBIT	57.9	40.9	17.0	42%
EBIT %	9.1%	8.1%	1.0%
Net profit after tax	41.1	28.4	12.7	45%
Cashflow & Capital Management:Operating Cashflow	79.7	50.7	29.0	57%
Net Cash	73.0	49.9	23.2	46%
Earnings per share (cents)	11.29	7.78	3.51	45%
Dividends declared per share (cents)	7.5	4.5	3.0	67%
Adjusted Profitability:
NPATA1	41.5	29.1	12.4	43%

Segment Results

Delivering revenue & profit growth across all segments, led by Fixed Communications

Segment results

$ million	FY18		FY17		Change
Fixed Communications	301.3		215.6		85.7
Network Construction	234.9		196.8		38.0
Energy & Water	104.7		94.6		10.1
Eliminations, interest & other revenue	(7.9)		(5.2)		(2.7)
Total Revenue	632.9		501.8		131.1
Fixed Communications	38.7	12.8%	25.8	11.9%	12.9	0.9%
Network Construction	24.4	10.4%	20.9	10.6%	3.5	(0.2%)
Energy & Water	9.8	9.3%	7.6	8.0%	2.2	1.3%
Unallocated corporate costs	(5.5)	(0.9%)	(5.9)	(1.2%)	0.4	0.3%
Total EBITDA	67.3	10.6%	48.4	9.6%	18.9	1.0%
Fixed Communications	34.7	11.5%	22.1	10.3%	12.6	1.2%
Network Construction	22.4	9.5%	19.1	9.7%	3.3	(0.2%)
Energy & Water	6.3	6.0%	5.6	5.9%	0.7	0.1%
Unallocated corporate costs	(5.5)	(0.9%)	(5.9)	(1.2%)	0.4	0.3%
EBIT	57.9	9.1%	40.9	8.1%	17.0	1.0%
Financing costs	0.4		(0.2)		0.6
Income tax expense	(17.2)		(12.3)		(4.8)
Net profit after tax	41.1	6.5%	28.4	5.7%	12.7	0.8%

All financial measures and period-on-period changes thereto are rounded to the displayed number of decimal places

Cashflow Results

Quality of earnings underpinned by strong cashflow performance

Cashflow results
$ million	FY18	FY17	Change
EBITDA	67.3	48.4	18.9
+/- non-cash items & change in working capital	32.6	8.5	24.1
OCFBIT1	99.9	56.9	43.0
1EBITDA to OCFBITconversion %	148%	118%	31%
Net interest and financing (paid) / received	0.4	(0.0)	0.4
Tax paid	(20.6)	(6.1)	(14.5)
Operating cashflow	79.7	50.7	28.9
Capital expenditure (net of proceeds from sales)	(7.5)	(8.7)	1.2
TechSafe acquisition (net of cash acquired)	(0.7)	(17.1)	16.5
Free cashflow	71.5	24.9	46.6
Dividends paid	(21.7)	(11.0)	(10.8)
Lease liability payments	(0.4)	(0.2)	(0.2)
Purchase of shares	(18.6)	(3.9)	(14.7)
Share buy-back	(8.0)	0.0	(8.0)
Net increase in cash	22.8	9.8	13.0
1Operating cashflow before interest & tax

All financial measures and period-on-period changes thereto are rounded to the displayed number of decimal places

Capital Management

Highlighted by the on-market share buy-back & increase in dividends

• The Group's balance sheet continues to strengthen with Net Cash increasing by $23.1m during the year to $73.0m, after:
  • buy-back of 5.0 million shares at a total cost of $8.0m; and
  • purchase of shares for expected vesting under the FY18 share-based incentive plans
• Board has declared a final dividend of 4.5 cps (fully-franked)
• Total dividends for the year of 7.5 cps up 3.0 cps on FY17 and represents a pay-out ratio of 66%
• Management continues to work through a disciplined process of identifying and evaluating business expansion opportunities
• TechSafe's profit contribution for the year of $3.0m was insufficient to satisfy the acquisition's earn-out condition due to a timing issue of work release, resulting in $1.0m being written-back to profit in accordance with the relevant accounting standard

OPERATIONAL PERFORMANCE

Safety Performance

Maintaining our focus on the safety of our people, our customers and the community

• Focus continues on maintaining a strong safety culture as operations across the business continue to grow and expand
• Delivered further improvements in reducing lost time injuries and severity rates throughout the year
• Working through a range of new initiatives to drive further improvement across Recordable and Medically Treated Injuries as performance improvement levels moderate
  • Increasing use of lead indicators to assess group performance across key risk areas
  • Targeted campaigns to review and improve HSE processes associated with higher risk field activities

Fixed Communications

Network operations, maintenance and minor works

• Revenue up 39.7% on prior year driven by an increase in nbn OMMA volumes and minor projects, with a solid revenue contribution of $48.3 million from other customers
• EBITDA margin steady in line with 2H17 & 1H18
• nbn NMRA contract extended to Dec-19
• Increase in nbn OMMA assurance & remediation volumes in 2H18 offset the expected decline in activations due to the HFC pause:
  • Service Stream Fixed Communications completed 363,200 nbn customer activations during the second-half, further increasing its OMMA market share
  • The ramp-up in the volume of assurance and remediation tickets continues as the National Broadband Network is progressively activated, with Service Stream completing 201,000 tickets during the second-half

Network Construction

Network engineering, design and construction

• Revenue up 19.3% on prior year driven by increases in Wireless and nbn design & construction activities under the MIMA & DCMA contracts
• Increases more than offsetting cessation of the nbn New Developments contract
• EBITDA margin maintained in line with that achieved in recent years
• Revenue under the MIMA & DCMA contracts increased to $105.7m in line with expectation
• Significant focus during the year on the completion of Fibre-to-the-Curb designs under the DCMA contract and construction of the first 13 x FTTC SAMs for nbn
• Wireless revenues driven by significant focus on the Telstra 'black-spot' program

Energy & Water

Utility asset installation, inspection and maintenance

• Revenue up 10.7% on prior year with TechSafe's revenue of $14.9m for the year impacted by a slightly slower second-half.
• EBITDA margin steady and in line with 2H17 & 1H18.
• 100% of incumbent metering contracts were retained during the year.
• Three new field service contracts, with an aggregate annual value of $9.5 million, have been won from competitors over recent months.
• 11.8 MW of solar PV installed during the year, with a strong continuing bias to commercial end-users.

GROUP STRATEGY & OUTLOOK

Group Strategic Pillars

We continue to focus on five fundamentals which drive operational effectiveness, continual improvement and support future growth

SERVICE DELIVERY

• Continued focus on superior service delivery and execution for our valued clients
• Drive ongoing improvements across our Safety performance
• Maintain a strong balance sheet and continue to minimise working capital requirements
• Maintain or improve Group EBITDA margins through scale and operational efficiencies

CLIENT RELATIONSHIPS

• Continue to develop and enhance our existing client relationships
• Expand and secure new relationships to support ongoing business growth
• Ongoing investments in technology to support DELIVERY MODEL

OPTIMISE OUR

• growth and increase efficiency Implement mature and
• scalable business frameworks and processes
• Increase use of data analytics and Business intelligence tools to drive improved business outcomes

OUR PEOPLE

• Continual investment in talent development and succession programs to support our valued people
• Ongoing investment in programs to attract and retain new talent
• Continue to drive and support an 'owners mentality' across the business
• Make it simple for our field workforce to engage with the business

DELIVER GROWTH

• Target additional 'annuity style' revenues to support ongoing future growth
• Maximise organic 'value add' opportunities across our existing client base
• Continue to assess acquisitions which provide revenue diversity and support growth across known / adjacent markets

Delivering Continued Growth

The business remains well positioned to deliver sustainable growth into the future

• Organic growth continues to be underpinned by superior service delivery and a solid contract pipeline across a blue-chip client base:
  • nbn activations forecasted to increase in FY19 after HFC pause in 2H18
  • nbn network maintenance volumes continues to increase
  • Increased investment in mobile technology and future 5G deployment
  • Increase in utility service contract wins and new energy projects
  • 100% retention rate for agreements which proceeded to market in FY18

• Investment in non-organic growth supported by a strong balance sheet
• We continue to work through a rigorous and disciplined approach in assessing M&A opportunities against our preferred criteria:
  • Revenue diversity & materiality
  • Market adjacency with similar operating model
  • Facing growth markets with opportunity for national footprint
  • Alignment of culture and values

FY19 Outlook

• We anticipate growth in Group EBITDA, EBIT and NPAT in FY19 leading to EPS growth of at least 10%, subject to forecasted customer demand.
• FY19 priorities include:
  • continued focus on superior service delivery and customer satisfaction for nbn in respect of customer activations and assurance works
  • completion of the MIMA and scaling of DCMA programs for nbn
  • completion of the Group's ERP replacement project with go-live of the third and final phase
  • securing organic growth opportunities across existing operations
  • continue to identify and assess further market expansion and diversification opportunities

HISTORICAL FINANCIAL PERFORMANCE DATA

PROFIT & LOSS

$ million	1H15	2H15	1H16	2H16	1H17	2H17	1H18	2H18	FY15	FY16	FY17	FY18
Fixed Communications	$93.16	$102.12	$97.19	$84.79	$100.96	$114.64	$145.70	$155.61	$195.29	$181.99	$215.59	$301.30
Network Construction	$63.65	$75.74	$82.90	$94.89	$93.63	$103.19	$99.20	$135.65	$139.38	$177.80	$196.82	$234.85
Energy & Water	$40.93	$36.34	$38.19	$43.76	$48.58	$46.04	$53.55	$51.13	$77.26	$81.96	$94.62	$104.68
Interest Income	$0.05	$0.08	$0.20	$0.50	$0.32	$0.35	$0.43	$0.50	$0.13	$0.70	$0.67	$0.93
Other & Eliminations	($0.36)	($0.44)	($1.43)	($2.07)	($2.72)	($3.17)	($4.74)	($4.08)	($0.79)	($3.50)	($5.89)	($8.81)
Total Revenue	$197.43	$213.84	$217.06	$221.88	$240.77	$261.04	$294.14	$338.81	$411.27	$438.94	$501.81	$632.95
Fixed Communications	$8.35	$8.89	$8.23	$9.13	$11.02	$14.74	$18.85	$19.81	$17.24	$17.36	$25.76	$38.67
Network Construction	$2.74	$6.66	$7.77	$11.10	$9.03	$11.85	$11.20	$13.16	$9.40	$18.87	$20.88	$24.36
Energy & Water	$2.13	$1.41	$2.32	$2.72	$3.24	$4.37	$4.98	$4.80	$3.54	$5.03	$7.61	$9.77
Unallocated Corporate Services	($2.56)	($2.22)	($2.63)	($2.81)	($2.20)	($3.70)	($2.98)	($2.52)	($4.78)	($5.45)	($5.90)	($5.50)
EBITDA	$10.66	$14.73	$15.68	$20.14	$21.09	$27.26	$32.05	$35.25	$25.39	$35.82	$48.35	$67.30
EBITDA %	5.4%	6.9%	7.2%	9.1%	8.8%	10.4%	10.9%	10.4%	6.2%	8.2%	9.6%	10.6%
Depreciation	($2.04)	($1.85)	($1.82)	($1.99)	($1.10)	($1.93)	($1.27)	($2.15)	($3.89)	($3.81)	($3.03)	($3.43)
EBITA	$8.62	$12.88	$13.87	$18.15	$19.99	$25.33	$30.78	$33.09	$21.50	$32.01	$45.33	$63.87
Amortisation	($1.01)	($1.43)	($1.14)	($2.47)	($1.36)	($2.64)	($1.44)	($2.64)	($2.44)	($3.61)	($4.00)	($4.09)
Amortisation of customer contracts	$0.00	$0.00	$0.00	$0.00	$0.00	($0.46)	($0.97)	($0.96)	$0.00	$0.00	($0.46)	($1.93)
EBIT	$7.61	$11.46	$12.73	$15.68	$18.64	$22.24	$28.37	$29.49	$19.06	$28.41	$40.87	$57.85
EBIT %	3.9%	5.4%	5.9%	7.1%	7.7%	8.5%	9.6%	8.7%	4.64%	6.47%	8.15%	9.1%
Net financing costs	($1.43)	($0.52)	($0.13)	$0.19	$0.01	($0.18)	$0.18	$0.24	($1.95)	$0.07	($0.17)	$0.42
Income tax expense	($2.14)	($3.26)	($3.79)	($4.70)	($5.61)	($6.72)	($8.65)	($8.52)	($5.40)	($8.49)	($12.33)	($17.17)
NPAT	$4.05	$7.68	$8.81	$11.17	$13.03	$15.34	$19.90	$21.21	$11.72	$19.98	$28.37	$41.11
NPAT %	2.0%	3.6%	4.1%	5.0%	5.4%	5.9%	6.8%	6.3%	2.8%	4.6%	5.7%	6.5%
Adjusted EBIT	$7.61	$11.46	$12.73	$15.68	$18.64	$23.21	$29.33	$30.45	$19.06	$28.41	$41.85	$59.78
Adjusted NPAT	$4.05	$7.68	$8.81	$11.17	$13.03	$16.54	$20.58	$20.88	$11.72	$19.98	$29.57	$41.46

SHAREHOLDERS' PERSPECTIVE

$ million	1H15	2H15	1H16	2H16	1H17	2H17	1H18	2H18	FY15	FY16	FY17	FY18
Avg number of shares on issue (millions)	386.390	386.390	386.390	382.770	363.846	365.189	365.189	362.695	386.390	384.590	364.512	363.952
NPAT	$4.05	$7.68	$8.81	$11.17	$13.03	$15.34	$19.90	$21.20	$11.72	$19.98	$28.37	$41.10
Earnings per share (cents)	1.05	1.99	2.28	2.92	3.58	4.20	5.45	5.85	3.03	5.20	7.78	11.29
Adjustments:
- Acquisition costs (TechSafe)	-	-	-	-	-	$0.52	$0.00	$0.00	-	-	$0.52	$0.00
- Amortisation of customer contracts (TechSafe)	-	-	-	-	-	$0.46	$0.97	$0.96	-	-	$0.46	$1.93
- Write-back of Deferred Consideration (TechSafe)	-	-	-	-	-	$0.52	$0.00	($1.00)	-	-	$0.52	($1.00)
- Tax effect of above	-	-	-	-	-	($0.29)	($0.29)	($0.29)	-	-	($0.29)	($0.58)
	-	-	-	-	-	$1.20	$0.68	($0.33)	-	-	$1.20	$0.35
Adjusted NPAT	$4.05	$7.68	$8.81	$11.17	$13.03	$16.02	$20.58	$20.88	$11.72	$19.98	$29.05	$41.46
Adjusted Earnings per share (cents)	1.05	1.99	2.28	2.92	3.58	4.39	5.63	5.76	3.03	5.20	7.97	11.39
Dividends Declared (cents)	0.50	1.00	1.00	1.50	1.50	3.00	3.00	4.50	1.50	2.50	4.50	7.50
Dividend payout ratio	47.8%	50.3%	43.9%	51.4%	41.9%	71.4%	55.0%	77.0%	49.5%	48.1%	57.8%	66.4%

CASH FLOW

CASH FLOW
$ million	1H15	2H15	1H16	2H16	1H17	2H17	1H18	2H18	FY15	FY16	FY17	FY18
EBITDA	$10.66	$14.73	$15.68	$20.14	$21.09	$27.26	$32.05	$35.25	$25.39	$35.82	$48.35	$67.30
+/- non-cash items & change in w/capital	($8.97)	$17.53	$15.03	$12.83	$3.25	$5.26	$25.05	$7.57	$8.57	$27.86	$8.51	$32.62
OCFBIT	$1.69	$32.27	$30.71	$32.97	$24.34	$32.52	$57.10	$42.81	$33.96	$63.67	$56.86	$99.91
Net tax paid	$0.00	$0.00	$0.00	($1.66)	($6.79)	$0.70	($14.65)	($5.99)	$0.00	($1.66)	($6.10)	($20.63)
Net interest & financing costs paid	($1.21)	($0.44)	$0.08	$0.23	($0.15)	$0.12	$0.17	$0.25	($1.64)	$0.31	($0.02)	$0.42
Operating cashflow	$0.48	$31.83	$30.79	$31.54	$17.40	$33.34	$42.63	$37.07	$32.31	$62.33	$50.75	$79.70
Capital expenditure	($1.11)	($2.75)	($4.14)	($5.40)	($5.10)	($3.74)	($3.49)	($4.25)	($3.86)	($9.55)	($8.84)	($7.73)
Proceeds from the sale of assets	$0.10	$0.08	$0.46	$0.77	$0.05	$0.06	$0.21	$0.03	$0.18	$1.23	$0.11	$0.24
Business acquisitions	$0.00	$0.00	$0.00	$0.00	$0.00	($17.14)	($0.69)	$0.00	$0.00	$0.00	($17.14)	($0.69)
Free cashflow	($0.53)	$29.16	$27.11	$26.91	$12.35	$12.52	$38.66	$32.86	$28.63	$54.02	$24.87	$71.52
Dividends paid	$0.00	($1.93)	($3.86)	($3.86)	($5.47)	($5.48)	($10.90)	($10.83)	($1.93)	($7.72)	($10.95)	($21.73)
Purchase of shares	($0.10)	($1.44)	($0.36)	($0.18)	($3.85)	($0.09)	($14.05)	($4.55)	($1.54)	($0.54)	($3.94)	($18.60)
Return of capital	$0.00	$0.00	$0.00	($19.43)	$0.00	$0.00	$0.00	$0.00	$0.00	($19.43)	$0.00	$0.00
Share Buy-back	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	($8.02)	$0.00	$0.00	$0.00	($8.02)
Proceeds / (Repayment) of borrowings	$4.00	($21.00)	$0.00	$0.00	$0.00	($0.18)	($0.20)	($0.15)	($17.00)	$0.00	($0.18)	($0.35)
Increase / (Decrease) in Cash	$3.37	$4.80	$22.89	$3.44	$3.03	$6.78	$13.51	$9.31	$8.17	$26.33	$9.81	$22.82
NET CASH / (DEBT)$ million
Cash and cash equivalents	$9.96	$14.76	$37.65	$41.09	$44.12	$50.90	$64.41	$73.70	$14.76	$41.09	$50.90	$73.70
Borrowings	($20.67)	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Finance lease liability	$0.00	$0.00	$0.00	$0.00	$0.00	($1.01)	($0.81)	($0.66)	$0.00	$0.00	($1.01)	($0.66)
	($10.71)	$14.76	$37.65	$41.09	$44.12	$49.89	$63.60	$73.04	$14.76	$41.09	$49.89	$73.04

SEGMENT RESULTS

$ million	1H15	2H15	1H16	2H16	1H17	2H17	1H18	2H18	FY15	FY16	FY17	FY18
Fixed Communications
nbn Activation & Assurance	$43.27	$54.32	$61.63	$57.81	$66.80	$79.54	$109.94	$108.11	$97.60	$119.45	$146.33	$218.05
nbn Minor Projects	$2.50	$4.92	$5.88	$6.86	$6.76	$6.59	$12.50	$22.44	$7.42	$12.74	$13.34	$34.94
Other customers	$47.39	$42.88	$29.68	$20.12	$27.40	$28.52	$23.26	$25.06	$90.27	$49.80	$55.92	$48.31
Revenue	$93.16	$102.12	$97.19	$84.79	$100.96	$114.64	$145.70	$155.61	$195.29	$181.99	$215.59	$301.30
EBITDA	$8.35	$8.89	$8.23	$9.13	$11.02	$14.74	$18.85	$19.81	$17.24	$17.36	$25.76	$38.67
EBITDA %	9.0%	8.7%	8.5%	10.8%	10.9%	12.9%	12.9%	12.7%	8.8%	9.5%	11.9%	12.8%
Network Construction
nbn MIMA & DCMA	$0.00	$0.00	$0.00	$8.92	$13.16	$27.96	$45.69	$60.03	$0.00	$8.92	$41.13	$105.72
nbn New Developments	$17.46	$16.68	$20.08	$23.73	$21.01	$13.11	$0.51	$0.05	$34.14	$43.81	$34.12	$0.56
Wireless	$41.56	$53.85	$58.94	$61.21	$58.81	$61.71	$52.54	$75.05	$95.41	$120.15	$120.52	$127.59
Other & Eliminations	$4.63	$5.21	$3.88	$1.03	$0.65	$0.40	$0.46	$0.52	$9.83	$4.92	$1.06	$0.98
Revenue	$63.65	$75.74	$82.90	$94.89	$93.63	$103.19	$99.20	$135.65	$139.38	$177.80	$196.82	$234.85
EBITDA	$2.74	$6.66	$7.77	$11.10	$9.03	$11.85	$11.20	$13.16	$9.40	$18.87	$20.88	$24.36
EBITDA %	4.3%	8.8%	9.4%	11.7%	9.6%	11.5%	11.3%	9.7%	6.7%	10.6%	10.6%	10.4%
Energy & Water
Metering Services	$22.42	$22.58	$24.19	$32.46	$39.36	$33.14	$34.73	$30.56	$44.99	$56.66	$72.51	$65.29
New Energy	$12.19	$9.41	$9.40	$6.74	$4.61	$5.29	$5.75	$8.02	$21.60	$16.14	$9.90	$13.77
TechSafe	$0.00	$0.00	$0.00	$0.00	$0.00	$2.80	$7.86	$7.07	$0.00	$0.00	$2.80	$14.92
Customer Care & Other	$6.32	$4.35	$4.60	$4.56	$4.61	$4.81	$5.21	$5.49	$10.67	$9.16	$9.42	$10.70
Revenue	$40.93	$36.34	$38.19	$43.76	$48.58	$46.04	$53.55	$51.13	$77.26	$81.96	$94.62	$104.68
EBITDA	$2.13	$1.41	$2.32	$2.72	$3.24	$4.37	$4.98	$4.80	$3.54	$5.03	$7.61	$9.77
EBITDA %	5.2%	3.9%	6.1%	6.2%	6.7%	9.5%	9.3%	9.4%	4.6%	6.1%	8.0%	9.3%

Group Financial Results – by half-year

2.6 4.9 7.6 11.5 12.7 15.7 18.6 22.2 28.4 29.5 $0 $5 $10 $15 $20 $25 $30 $35 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Group EBIT ($m)

Dividend Payout Ratio %

Group Financial Results – by half-year

26

Segment Results – by half-year

2.1 1.4 2.3 2.7 3.2 4.4 5.0 4.8 $0 $2 $4 $6 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Energy & Water EBITDA ($m)

Network Construction

Disclaimer

Important information for investors

This presentation has been prepared by Service Stream Limited (SSM).

Whilst the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy or reliability of any statements, estimates, opinions or other information contained in this presentation.

To the extent this presentation contains forward looking statements, those forward looking statements have been made based upon SSM's expectations and beliefs concerning future developments and their potential effect upon SSM and are subject to risks and uncertainty which are, in many instances, beyond SSM's control. No assurance is given that future developments will be in accordance with SSM's expectations. Actual results could differ materially from those expected by SSM.

The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs.

In this presentation, unless otherwise stated or the context otherwise requires, references to 'dollar amounts' or '$' are to Australian dollars.