Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — 2010 Rising Stars Microcap Conference
34 slides from Siv Capital's conference presentation, Jun 9, 2010
Slide 1: 2010 Rising Stars Microcap Conference
For personal use only 2010 Rising Stars Microcap Conference SILVER CHEF ASX-SIV Presented by Allan English (MD) and Charles Gregory (CEO July 2010) SYDNEY HILTON, 10 of June 2010
Slide 2: Overview
For personal use only Overview - Our Success Story - Our Business - Our Offer - About Us Investor & Financial Results Inside Our Business Outlook Summary
Slide 3: Overview – Our Success Story
For personal use only Overview – Our Success Story Silver Chef - a unique approach to equipment finance 24 years of successful operations More than 7500 customers nationally
Slide 4: Overview – Our Business
For personal use only Overview – Our Business Founded 24 years ago by Managing Director Allan English Conveyor ovens for home delivery pizza Sale of equipment distribution business to focus on rental business Developed Rent-Try-Buy®
Slide 5: Overview – Our Business
For personal use only Overview – Our Business Based in Brisbane, national operations 70 employees Customers throughout Australia $100 million assets under management Market capitalisation $50 million
Slide 6: Our Offer – The Rent-Try-Buy Solution
For personal use only Our Offer – The Rent-Try-Buy® Solution 12 month rental agreement It keeps the customers options open… Can purchase the equipment at any time during the first 12 months and receive a 75% rental rebate Return the equipment at end of term if not required Continue to rent
Slide 7: Successful expansion
For personal use only Successful expansion Initially one brand – Silver Chef Now two brands – Silver Chef & GoGetta Silver Chef – leader in hospitality equipment funding GoGetta – broader range of commercial equipment Australia-wide dealer and vendor network 2 brands = diversity and busi
Slide 8: About Us – Industry recognition
For personal use only About Us – Industry recognition Restaurant and Catering Awards Queensland – Best Equipment Supplies and Commercial Design Supplier Finalist in the National Marketing Institute awards Finalist in the “Great Place to Work” institute awards 90% staff voted that Silver Chef
Slide 9: Allan English
For personal use only Allan English Founder and Managing Director for 24 years Moving to non-executive Chairman role July 1, 2010 Maintaining shareholding
Slide 10: Charles Gregory
For personal use only Charles Gregory Chief Operating Officer since July 2008 2-year succession plan Promotion to CEO role effective July 1, 2010 Extensive experience in management, leadership and driving company growth 12 years with leading ASX-listed travel group Flight Centre
Slide 11: Investor & Financial Results
For personal use only Investor & Financial RESULTS
Slide 12: Investor – Results
For personal use only Investor – Results $ 1 and 13.4 million shares MARKET CAPITALISATION 2005 = $ 13.4 million $ 2.20 and 21.2 million shares MARKET CAPITALISATION 2010 = $ 46.8 million Over 20% CAGR in EPS since 2005 – 28c 60%-70% DPOR 57c paid in dividends since 2005 – 8% Div Yield (full
Slide 13: Investor – Mid Year Results
For personal use only Investor – Mid Year Results Mid Year EPS on expanded capital base up from 4.9 cents to 17.8 cents Interim fully franked dividend doubled to 8 cents a share Updated EPS Guidance to 28c Current PE 7.8
Slide 14: Financials – Mid Year Results
For personal use only Financials – Mid Year Results Rental income up 45% to $23.3m Net Profit Before Tax $4.2m up from $1.1m Operating cash flow up from $9.7m to $16.7m
Slide 15: EBITDA ($000)
For personal use only EBITDA ($ 000) 25,000 20,000 15,000 2nd ha l f 10,000 Is t Ha l f 5,000 - 2006 2007 2008 2009 2010 H1 FY2010 - up 52.8% to $16.0m
Slide 16: NPAT ($000)
For personal use only NPAT ($ 000) 4,000 3,500 3,000 2,500 2nd ha l f 2,000 Is t Ha l f 1,500 1,000 500 - 2006 2007 2008 2009 2010 H1 - up 288% on pcp to $3.2m
Slide 17: Earnings Per Share (cps)
For personal use only Earnings Per Share (cps) 30.0 25.0 20.0 Yea r End 15.0 Ha l f yea r 10.0 5.0 - 2006 2007 2008 2009 F 2010 guidance - 28 cps for FY 2010
Slide 18: Net operating cash flow ($000)
For personal use only Financials H1 2010…net operating cash flow ($ 000) 25,000 20,000 15,000 2nd ha l f 10,000 Is t Ha l f 5,000 - 2006 2007 2008 2009 2010 H1 2010 - up 73% on pcp to $16.7m
Slide 19: Inside Our Business
For personal use only Inside Our Business Funding, Our People, Our Customers, Risk Management, & Strategic Planning
Slide 20: Funding
For personal use only Funding Current facilities with BankWest until July 2011 Bank discussions underway Debentures, and further capital raising being considered Successful capital raising program during H1 FY2010 - $2.5 million share placement - $4 million 1-for-4 rights issue (50% oversubs
Slide 21: Business Drivers – Our People
For personal use only Business Drivers – Our People Core Values: teamwork, respect, attitude, flexibility, integrity and communication Investing in our people – Silver Chef Training Academy Alignment to company goals and Incentive Based Pay Annual Team Leader conference – Vision, BHAG, Perso
Slide 22: Our People - Experienced Board
For personal use only Our People - Experienced Board Same board since 2005 ASX float From July 1, 2010 Allan English as Non-Executive Chairman Role reflects continuing high-level involvement Current Chairman Andrew Kemp - a non-executive director and Finance Committee Chairman from July 1, 2
Slide 23: Business Drivers – Our People
For personal use only Business Drivers – Our People The Great Place to Work Survey: “ Taking everything into account I would say this is a great place to work” 90% Yes “ Management is competent at running the business” 100% Yes “Management has a clear view of where the organisation is going and ho
Slide 24: Our Customers …
For personal use only Our Customers …
Slide 25: Customer network
For personal use only Customer network Harry – our profile client! Engaging with our customers New business & business-retention strategies Significant marketing initiative to soon be announced
Slide 26: Risk Management – Credit & Asset
For personal use only Risk Management – Credit & Asset Weekly customer payments Security bond lodged by customers 7,560 clients with the largest being <1% of rental income Customer base growing – model works in both “good” and “bad” times
Slide 27: Risk Management – Credit & Asset cont…
For personal use only Risk Management – Credit & Asset cont….. We finance the cornerstone assets in the business 95% of assets are earning income
Slide 28: Silver Chef Remarketing Process
For personal use only silverchef Remarketing Process Client returns Silver Chef Service Facility Asset Cleaned equipment & Serviced Target FY 2010 80% sold within 60 days of receipt Dealer Web Online Rental Sales Auction Sales
Slide 29: GoGetta Remarketing Process
For personal use only GoGetta Remarketing Process Client Returns Equipment to Vendor … within 90 Days New Client Purchase for Stock Sale or … New Rental Contract with GoGetta
Slide 30: Strategic Planning & Execution
For personal use only Strategic Planning & Execution
Slide 31: Outlook
For personal use only Outlook FY 2010 EPS guidance upgraded to 28 cps from 26 cps Compound average EPS growth rate of 23.1% since 2005 ASX listing 1H FY2010 Net Assets at $23.1 million Live rental contracts up – from 6,500 to 7,560 in 1H Strong contract renewals Recurring income streams
Slide 32: Summary
For personal use only Summary • Growth business with solid foundation • Well managed business - particularly the risk aspects • Good future prospects
Slide 33: Disclaimer
For personal use only • 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 ad
Slide 34: Conclusion – Thank you
For personal use only Conclusion Thank you … Any questions?