Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — RBS Morgans Analysts & Institutional Advisors presentation (August 2010)
38 slides from Siv Capital's conference presentation, Aug 6, 2010
Slide 1: Silver Chef Limited (SIV) Presentation to RBS Morgans
3% RBS Morgans Silver Chef Limited (SIV) Presentation to RBS Morgans Analysts & Institutional Advisors / e S$ i 2 “090° silverchef cogetta’ hospitality equipment funding equipment funding Rent. Try. Buy.” go.Rent. go.Grow. #0.0wn.
Slide 2: Agenda
3* RBS Morgans ® Overview e Inside Our Business e Financial & Investor Highlights e investment Proposition e Summary silverchef hospitality equipment funding ‘equipment funding, Ront. Try. Buy.” go.Rent. £0.Grow. g0.0wn.
Slide 3: Overview — Silver Chef Limited
3< RBS Morgans Overview — Silver Chef Limited ° Long Term Commercial Equipment Rental Company . Primarily in Hospitality Sector e 5 100m Assets under management ° Over 6,000 Clients ° 60m Market Capitalisation ° 23.22% CAGR in EPS since listing silverchef Sogetta’ ‘hospitality equipment funding ‘equ
Slide 4: Overview — Our Success Story
3 RBS Morgans Overview — Our Success Story @ 24-year trading history ® The opportunity - pizza oven story e Developing the “Rent. Try. Buy.” model © ASX listing 2005 ® Expansion - GoGetta launched in 2008 e Leadership succession plan carried out July 2010 sitverchef sogetta’ hospilaily equipment fun
Slide 5: Rent. Try. Buy. Model
as RBS Morgans Rent. Try. Buy. Model ® Low weekly rental ° 75% rebate @ One-year minimum term ® Flexible options that are client focused @ 13 Week Rental Bond silverchef cogent hospitality equipment fending ‘equipment funding Rent, Try: Buy.” (0. GOW. 0.0Wt.
Slide 6: Inside Our Business: What has the model delivered?
>< RBS Morgans inside Our Business What has the model has delivered? Recurring Annuity Style Income Stream — 70% A large client base with low concentration Low bad debts 29-month contract average in Hospitality Satisfactory Investor Returns since 2005 TSR 238% TSR 90% (in last 12 months) © ® @ 6 @ s
Slide 7: Risk Management
ye i RBS Morgans RISK MANAGEMENT silverchef hospitality equipment tundi Ront. Try. Bay?
Slide 8: Managing Risk - Credit
a« RBS Morgans Managing Risk - CREDIT ® Low bad debts 13-week rental bond No client larger than 1% 50% to 60% credit approval rate Historically Low comparative bad debts silverchef Sogetta’ hospitality equipment fun a ‘equipment funding Ront. Try. Buy? Ko.Rant. 0.Grow, s10.0wn,
Slide 9: Managing Risk - Asset
a< RBS Morgans Managing Risk - ASSET e Finance - the business critical asset @ Majority of rental assets ultimately purchased by client ® Residual Asset Risk silverchef sogetta’ hospitality equipment funding ‘equipenent funding 9 Ront. Try. Buy. io. Rent. go.Grow. g0.0wn.
Slide 10: Asset risk management - hospitality
x¢RBS Morgans Asset risk management - hospitality F. -Client returns Silver Chef = Fi i) Service Facility ‘Asset Cleaned ‘ equipment & Serviced Target. FY 2010 80% sold within 60 days of receipt eos Web Online Dealer siverchef Sogetta’ hospitality equipment funding ‘equipment funding Ront. Try. Buy.
Slide 11: Asset risk management - GoGetta
3* RBS Morgans Asset risk management - GoGetta o ..within.90 Days ® Sale or: New. Rental Contract with GoGetta es . On re silverchef Sogetta’ hospitality equipment funding ‘equipment funding Ront. Try. Buy.” #o.ftent. f0.Grow. £0.0wn.
Slide 12: Managing Risk — Interest Rate
3< RBS Morgans Managing Risk — Interest Rate ° Hedge in Place @ 6.46% e Pro Active Interest Rate Risk Management Strategy @ Significant margin between WACC and Rental Rate 8 ‘a mony: silverchef coments hospitality equipment funding ‘equipment fund Rent. Try. Buy.” o.Rent. £o.Grow. 20.0wn.
Slide 13: Managing Risk — Other
$< RBS Morgans Managing Risk — Other ® internal Audit & Risk Review Process © Risk Identification and Management process e Robust Business Model ® Two Important Numbers — 80% & 80% siiverchef cogetta hospitality equipment funding, ‘equipment funding Rot. Try. Bury.” &0.Rent, #0.Grom, <o.0Wn,
Slide 14: Funding
3% RBS Morgans FUNDING ; ‘4g0® silverchet cogetta Rout. Try. Buy.” go.Rtent. #0, Grow. go.dwn,
Slide 15: Inside Our Business - Funding
3x RBS Morgans Inside Our Business - Funding @ 3 Year 74 Million Dollar Debt Facility secured — CBA ° DRP in place to preserve cash 6 Successful capital-raising program 2010 ® S40m per year internally generated
Slide 16: Our People
a< RBS Morgans OUR PEOPLE silverchet cogetta’ Rent. Try. Buy. go. Rent. go.Grow, s0.Own,
Slide 17: Inside Our Business - Our People
ax RBS Morgans Inside Our Business - Our People 6 Core Values — TRAFIC @ investing in our people — Training Academy ® Incentive-based pay — Alignment ° Annual conference ® Experienced & Dynamic Leadership Team 6 Experienced Balanced Board led by Allan silverchef hospitatity equipment funding Smet ‘e
Slide 18: BRW Great Place to Work Survey
3% RBS Morgans BRW Great Place to Work Survey Google 2 5th CLA DIAGEO Deloitte. ie siiverchef <ogetta’ haspilaity equipment funding ‘equipment funding Ront. Try. Buy.” ¢0.Rent, 10.Grow. g0.0wn. Buy:
Slide 19: BRW Great Place to Work Survey
3x RBS Morgans BRW Great Place to Work Survey “Taking everything into account | would say this is a great place to work” 90% Yes “Management has a clear view of where the organisation is going and how to get there” 94% Yes “Management is competent at running the business” 100% Yes “I’m proud to tell
Slide 20: Our Clients
_¥€RBS Morgans OUR CLIENTS ‘3 ; ‘yee® silverchef cogetta Rent. Try. Buy.” go. Rent. go.Grow, zo.Qwn,
Slide 21: Inside Our Business - Our Clients
_&RBS Morgans inside Our Business - Our Clients ; i “ silverchef sogetta Rent. Try. Buy.” go.Rent, so.Grow. £0. 0wn,
Slide 22: Our Clients
3% RBS Morgans Our Clients e Harry — our profile client! @ Engaging our clients ® The HISI report i os . ‘uge® siverchet sogetta Rent. Try, Buy.” go.ftent, go.Grow. 46. Own,
Slide 23: Strategy Development & Execution
>< RBS Morgans STRATEGY DEVELOPMENT & EXECUTION silverchef cogetta: hospitality equipment fang ‘equipment funding ‘equips 9
Slide 24: Growth Strategies - Strategic Planning & Execution
a< RBS Morgans Growth Strategies - Strategic Planning & Execution Gazelles | GROWING LEADERS » Groans COMPAS, ze The strategic planning system of choice for over.40% se argenti : oa => FLIGHT. CENTRE - Simplot MinterEllison |... |e mayen ec
Slide 25: Growth Strategies - Silver Chef Hospitality and GoGetta
24 RBS Morgans Growth Strategies - Silver Chef Hospitality Organic growth Franchise market & Broker strategy testing GoGetta Managed organic growth Australian market, Sector strategy ed f e e haee® silverchef sogetta hospitally equipment funding ‘equipment fu ing Rent. Try. Buy. go.Rent, 20.Grow, so
Slide 26: Financial & Investor Results
3< RBS Morgans FINANCIAL & INVESTOR RESULTS % a Moun i4g0* silverchet cogettar spitalily equipment funda rennin
Slide 27: Investor Highlights
3£ RBS Morgans Investor Highlights e Market cap at ASX listing 2005 - $13.4 million ° Market cap 2010 - $60 million (share price @S2.80) e 23.22% CAGR in EPS since 2005 e TSR 90% in last 12 months silverchef cogetta’ hospitality equipment funding ‘equipment funding Rontt. Try. Buy.” go.Rent, vo. Gro
Slide 28: Financial Highlights 1H2010
3< RBS Morgans Financial Highlights 1H2010 e Rental Income up 45% to $23.3m ° NPBT S 4.2m up from S$ 1.1m e Operating Cash flow $16.7m up from $9.7m ® Interim fully-franked dividend doubled to 8 cents per share e FY2010 EPS Guidance 28 cps silverchef cogetta hospitality equipment tundin ‘equipment f
Slide 29: Financial & Investor Results — EBITDA
%< RBS Morgans Financial & Investor Results — 5 Years EBITDA ($ 000) Bnd half Bist Half ~ “2006 2007-2008 ~-—-2009 2010 H1 FY2010 - up 52.8% to $16.0m . bee” silverchet cogetta Font. Try. Buy.® Ko.Rent, 20.Grow, go.0wn,
Slide 30: Financial & Investor Results — NPAT
¥¢RBS Morgans Financial & Investor Results — 5 Years NPAT ($000) . & 2nd half Bist Half 2006 2007 2008 2009 2010 H1 - up 288% on pcp to $3.2m ee Z e . “9 eo siverchef Sogetta’ hospitality equipment funding equipment funding Rent. Try. Buy.” 4o.Rent. £0.Grow. #0.0wn,
Slide 31: Financial & Investor Results — Earnings Per Share
3* RBS Morgans Financial & Investor Results — 5 Years Earnings Per Share (cps) =» 30.0 25.0 |e 20.0 |- & @ Year End 15.0 ft Half year 10.0 -§ 5.0 1-8 2006 2007 2008 2009 F 2010 guidance - 28 cps for FY 2010 5 i » “490 silverchef cogetta’ ‘hospitality equipment funding ‘equipment funding Rent. Try. B
Slide 32: Financial & Investor Results — Net Operating Cash Flow
34 RBS Morgans Financial & Investor Results — 5 Years Financials H1 2010...net operating cash flow ($ 000) @ 2nd half istHalt H1 2010 - up 73% on pcp to $16.7m hee silverchef Sogetta: hospitality equipment funding ‘equipment tunding Ront. Try. Buy” xo. ftent, o.Grow, 20.0wn,
Slide 33: Investment Proposition
3% RBS Morgans INVESTMENT PROPOSITION silverchef Sogetta’ hospitality equipment funding ‘equipment funding Rent, Try. Buy.” &0.Rent, ge.Grow. g0.0wn.
Slide 34: Investment Proposition
3% RBS Morgans Investment Proposition ° FY 2010 EPS guidance upgraded to 28cps ° FY 2010 PE of 10 times @ 2.80 ° Sustainable growth in EPS ~ supporting good TSR ° High degree of certainty — recurring income streams ° Succession plan executed silverchet Sogetta’
Slide 35: Things we are working at doing better
34 RBS Morgans Things we are working at doing better AND What if ...... ? ie ce silverchef sogetta Ront. Try. Buy.” Ko.Rent. i0.Grow. g0.0wn,
Slide 36: Summary
Summary ° Market innovator with unique business model ° Robust business model ° High degree of certainty — recurring income streams ® Successful risk management ® Strong Management team & Balanced Board ® Strategies in place for future growth in existing and new sectors and thereby TSR’s silverchef
Slide 37: Disclaimer
Disclaimer Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal advisors. This presentatio
Slide 38: Silver Chef Limited (SIV)
3% RBS Morgans Silver Chef Limited (SIV) getta equipment funding #o.Rent. <c.Grow. £0.0wn, hospitality equipment funding Rent. Try. Buy.°
Silver Chef — RBS Morgans Analysts & Institutional Advisors presentation (August 2010) on 6ix