Slide 1: Half Year Results to 31 December 2014
For personal use only Half Year Results to 31 December 2014 1
Slide 2: Disclaimer
Disclaimer Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Perso ns needing advice should consult For personal use only their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal adv
Slide 3: Strong first half results
Strong first half results Highlights • Strong growth in underlying earnings and dividend returns • Record GoGetta acquisitions, up 51% on second half of FY14 For personal use only • Hospitality growth in line with expectation, including New Zealand and Canada • Strong growth in operating cash flow u
Slide 4: Strong growth in acquisition rate and assets
Strong growth in acquisition rate and assets For personal use only Book value of rental assets Group asset acquisitions 250 100 90 17.9 200 80 11.5 70 40.5 76.2 62.3 60 150 23.6 62.4 $ millions 25.9 26.9 50 $ million 22.7 44.4 40 100 18.5 18.4 26.9 30 16.1 125.7 133.3 50.0 47.0 111.1 20 39.7 39.5 50
Slide 5: Hospitality – Solid growth in a mature market
Hospitality – Solid growth in a mature market Australia For personal use only – Performing in line with expectations, although competitive environment – Enhancing annuity stream income – Innovate in response to customer and market dynamics – Continued growth in franchise sector and Pubs & Clubs New
Slide 6: Hospitality – Solid platform for growth in Canada
Hospitality – Solid platform for growth in Canada Foodservice Population1 Total outlets For personal use only Market1 Canada 35 million $US63 billion 109,213 Australia 22 million $US45 billion 74,196 1. Source: BIS Shrapnel 2. 3. Source: The Mezzanine Group – Market Research Report (September 2013)
Slide 7: GoGetta – Transport and Construction Focus
GoGetta – Transport and Construction Focus Strategy For personal use only – Increased focus on light commercial vehicles and the small to medium sized construction equipment sector – Deep markets with growing appetite for flexible finance options – Strong secondary market for used assets Rental asse
Slide 8: December 2014 Results Overview
31 December 2014 Results Overview Asset acquisitions For personal use only o Total rental assets (at cost) including lease receivables increased 12% to $335.0 million (30 June 2014: $299.0 million) Hospitality asset acquisitions of $50.0 million – up 27% from 2H14 GoGetta asset acquisitions of $
Slide 9: Profit & Loss
Profit & Loss Change $ millions 1H14 1H15 For personal use only 1H14 Revenue 67.4 82.9 23% Reflects people and other overheads Expenses from ordinary activities (20.5) (27.3) 39% associated with Loss on sale of plant and equipment (2.8) (2.9) 3% establishment of Canada and Melbourne Earnings before
Slide 10: Financial Position
Financial Position Change For personal use only $ millions 30 June 2014 31 December 2014 (FY14 – 1H15) Assets Cash 1.5 3.1 + 106% Lease receivables 11.4 17.9 +57% Other current assets 6.2 8.1 + 31% Rental assets at WDV 188.1 209.5 + 11% Other non current assets 11.2 11.7 + 4% Total assets 218.4 250.
Slide 11: Strong revenue performance off growing asset base
Strong revenue performance off growing asset base o Revenue up 23% to $83.0 million (1H14: $67.4 For personal use only Revenue by Segment 90 million). 1.7 o Hospitality revenue up 20% to $53.9 million (1H14: 80 $44.9million) 70 1.8 o GoGetta revenue up 27% to $27.4 million (1H14: 1.0 27.4 $21.5milli
Slide 12: Credit and residual asset risk
Credit and residual asset risk o Additional conservative provisioning in 1H15 as a result of review of collection processes For personal use only o Long term provisioning for doubtful debts and impairment normalising in range of 2-3% per annum o Client base remains highly diversified - largest clien
Slide 13: Funding
Funding Rental Asset Funding Source - First Half o In 1H15 the Company acquired $90.5 million of rental assets (at cost) of which 79% was funded from internally generated For personal use only cash flows 21% o As at 31 December 2014, 59% of the carrying amount of the Company’s rental assets is funde
Slide 14: Earnings and returns expected to improve
Earnings and returns expected to improve Period of substantial For personal use only overhead investment largely complete 14.00% 30 13.2% 12.2% 12.6% 12.00% 12.3% 11.7% 25 10.5% 24.00 10.4% 10.2% 10.00% 9.4% 21.81 22.36 21.04 20 8.00% 19.28 19.59 7.2% 7.7% 7.3% 18.02 6.4% 6.8% 6.3% 16.00 16.00 6.00%
Slide 15: Retail turnover 2004-14 and Outlook
Retail turnover- 2004-14 Outlook Cafes, restaurants and takeaway food services vs total industry 70.0 60.0 Cafes, restaurants and takeaway food Retail- General o Demand for coffee and dining out will 50.0 For personal use only % change cumulative by month create ongoing funding opportunities even 40
Slide 16: Company Background
For personal use only Silver Chef Limited Company Background 16
Slide 17: The Silver Chef Story
The Silver Chef Story For personal use only 2005 2011 Listed on ASX New Zealand business 1986 2008 established 2013 Established by Executive GoGetta brand launched Canadian business Chairman Allan English established Customer Value Proposition o Low weekly rental repayments o Frees up working capita
Slide 18: Strategy
Strategy Funding Focus on ensuring that the company has Group For personal use only access to sufficient o Continued focus on delivering ten year Argenti funding, in an appropriate debt / strategic plan – currently in year four equity mix to achieve growth Growth Silver Chef Customer Solutions Focus
Slide 19: Competitive Advantage through People and Culture
Competitive Advantage through People and Culture For personal use only o Every Silver Chef employee has a bonus linked to the satisfaction of our customers o Over the past five years there has been incremental growth in our customer satisfaction ratings and this equates directly to repeat business f