Service Stream Limited

Bob Grant

Chief Financial Officer

31 May 2018

Thorney Opportunities (ASX:TOP) & Thorney Technologies (ASX:TEK)

Sydney Investment Forum Presentation

2

Agenda

1 Company Overview

Business Operations

Financial Performance & Outlook

2

3

4 Q&A

COMPANY OVERVIEW

4

Company ProfileService 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.

26 Offices & Depots

Servicing 75% of Australia’s land mass

Workforce of over 5,000

10k+ Tickets of Work per day

100k+ Properties visited per day

35m+ Properties visited per annum

0.00

0.30

0.60

0.90

1.20

1.50

1.80

May-14 Feb-15 Nov-15 Aug-16 May-17 Feb-18

SHARE PRICE PERFORMANCE – 4 YEARS

OPERATIONS AT A GLANCE

Fixed-Line

Wireless

Electricity

Water

Gas

Telecommunications Utilities

MARKETS WE OPERATE ACROSS

SERVICE STREAM LIMITED (ASX:SSM)

EBITDA

Earnings per share

Dividend per share

Net Cash (31-Dec-17)

Share Price (21-May-18)

Market Capitalisation (21-May-18)

FY17

$48.4m

7.78cps

4.50cps

1H18

$32.1m

5.45cps

3.00cps

$63.6m

$1.575

$567.9m

EV/EBITDA 1

PER 17.7x

14.4x

1 based on FY18 consensus earnings

BUSINESS OPERATIONS

6

Business Operations

Utility asset installation, inspection and maintenance

Network operations, maintenance and minor works

Network engineering, design and construction

Through our three operating divisions; Fixed Communications, Network Construction and Energy &

Water, we work with clients across the telecommunication and utility sectors to provide specialist services

associated with the design, construction, installation and ongoing maintenance of their essential

networks

Service Stream’s Fixed Communications team specialises in providing design, construction, upgrade and maintenance

services across Australia’s fixed-line telecommunication networks

7

Fixed Communications

Services include:

End-user installation and commissioning Activation

End-user fault diagnosis and rectification Service Assurance

Network fault diagnosis and rectification Network Assurance

Network fault prevention Remediation

Proactive network augmentation and upgrade Minor Projects

Network asset relocation Recoverable Works

Customers include:

nbn co

Telstra

Optus

TPG

Technologies include:

Fibre-optic (FTTP, FTTC, FTTN, FTTB)

Copper

Hybrid-fibre Coaxial (HFC)

Installation & Commissioning Asset Re-locationService & Network Assurance

8

Network ConstructionService Stream’s Network Construction team specialises in site acquisition, design, engineering, construction, installation,

upgrade and maintenance of wireless & fibre-optic fixed-line telecommunication infrastructure

Services include:

Design & construction of multi-technology

telecommunication networks

Site acquisition for greenfield wireless infrastructure

Engineering, design, construction & decommissioning

of wireless infrastructure … including LTE base

stations, towers and rooftop deployments

Upgrade of wireless infrastructure … including LTE

base stations, towers and rooftop deployments

Lease management & colocation negotiations

Wi-Fi design & installation and satellite earth stations

Customers include:

nbn co

Telstra, Vodafone, Nokia, TPG

Private wireless network owners

Technologies include:

Fibre-optic (FTTP, FTTC, FTTN, FTTB)

Wireless (2G, 3G, 4G, 5G)

Engineering & Design Network Construction Upgrade & Maintenance

Service Stream’s Energy & Water team specialises in providing design, installation, maintenance and customer management

services to Australia’s electricity, gas and water network owners and retailer service providers

9

Energy & Water

Services include:

Meter reading

Meter and asset replacement

Disconnection/re-connection services

Smart-meter network deployments

Asset inspection and compliance auditing

Commercial and residential solar PV

Electric vehicle charge station

Battery storage

Customers include:

Network owners

Network operators

Utility Regulators

Utility Retailers

Technologies include:

Electricity

Gas

Water

Installation & Maintenance Design & Installation Inspection & Auditing

FINANCIAL PERFORMANCE & OUTLOOK

11

Financial PerformanceThe last four years have been characterised by the Group delivering consistent growth in profit, underpinned by strong cashflow generation and sound capital management

215.0

174.6197.4

213.8 217.1 221.9240.8

261.0

294.1

$0

$50

$100

$150

$200

$250

$300

$350

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Group Revenue($m)

7.59.0

10.7

14.715.7

20.121.1

27.3

32.1

$0

$5

$10

$15

$20

$25

$30

$35

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Group EBITDA($m)

3.5%

5.2% 5.4%

6.9%7.2%

9.1% 8.8%

10.4%10.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Group EBITDA %

241%

134%

16%

219%

196%

164%

115% 119%

178%

0%

50%

100%

150%

200%

250%

300%

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

EBITDA to OCFBIT conversion %

15.3%

17.7% 17.9%

12.6%

9.2%

6.2% 5.6%4.5%

0.3%

0%

5%

10%

15%

20%

25%

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Working Capital(% of annualised Revenue)

14.8

10.1

0.5

31.8 30.8 31.5

17.4

33.3

42.6

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Operating Cashflow($m)

(38.1)

(10.4) (11.0)

14.8

37.741.1 44.1

49.9

63.6

($60)

($40)

($20)

$0

$20

$40

$60

$80

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Net Cash / (Net Debt)($m)

0.18

0.58

1.05

1.992.28

2.92

3.58

4.20

5.45

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Reported EPS(cents per share)

0.00 0.00

0.50

1.00 1.00

1.50 1.50

3.00 3.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18

Dividends Declared(cents per share)

Since announcing a share buy-back in February, the Company has

acquired and cancelled a total of 4.6 million shares

We expect operation of the share buy-back to continue

In February, we confirmed that we expected full-year Group EBITDA

to be approximately $64m

FY18 Outlook

12

Q&A