Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — H1 FY2013 Earnings Presentation
24 slides from Siv Capital's earnings presentation, Feb 25, 2013
Slide 1: First Half Results to 31 December 2012
For personal use only First Half Results to 31 December 2012
Slide 2: First half to 31 December 2012
For personal use only First half to 31 December 2012 FIRST HALF RESULTS 2
Slide 3: The Silver Chef Group
The Silver Chef Group For personal use only o New brand hierarchy launched 1 February 2013. o Silver Chef Group created as ‘umbrella’ brand for all category-specific sub brands. o Existing Silver Chef brand used exclusively in hospitality industry. o Existing GoGetta brand used for all other sectors
Slide 4: First Half Highlights
First Half Highlights For personal use only Total revenue + 37% Rental assets (at cost) + 21% NPAT + 41% EPS + 21% Dividend + 47% Net tangible assets (NTA) + 26% 4
Slide 5: First Half – Key Drivers
First Half – Key Drivers Continued growth in assets and revenue For personal use only o Both brands grew strongly in the first half with Silver Chef growing rental income 26% to $35.3 million and GoGetta increasing 63% to $17.1 million. o Total rental assets (at cost) increased 21% to $229.8 million
Slide 6: Rental assets at cost
Rental assets at cost 250 For personal use only Group o Total rental assets (at cost) - up 21% to $229.8m since 30 June 200 2012. 72.8 o Total acquisitions of $65.6 million in first half. 54.9 150 $ million Silver Chef 32.7 o Up 20% to $157.0 million from 30 100 19.1 June 2012. 7.9 157.0 130.6 GoGet
Slide 7: Segment Review
Segment Review For personal use only Rental Revenue - First Half 2013 Rental assets (at cost) - First Half 2013 Silver Chef o Continued strong organic growth. 32% 32% Silver Chef Silver Chef o Increased penetration in new GoGetta GoGetta 68% target sectors; franchise and 68% New Zealand. o Improved
Slide 8: Financial Highlights – Revenue
Financial Highlights – Revenue For personal use only Total Revenue – up 37% to $53.6 million o Growing rental income from solid growth in rental assets across both brands. 90 o High utilisation of rental assets. 80 70 45.0 60 ($ m) 1H10 1H11 1H12 1H13 Change 50 $ millions 32.7 Silver 19.7 23.5 27.9
Slide 9: Financial Highlights – NPAT and Cash Flow
Financial Highlights – NPAT and Cash Flow For personal use only NPAT up 41% to $5.9 million Cash Flow from Operations up 43% 13 60 12 FY13 Forecast for NPAT 11 of $11.2m - $11.7m 50 10 9 30.7 40 8 $ millions $millions 7 23.5 4.8 30 6 18.6 5 3.6 20 4 2.0 36.7 10.9 3 6.9 5.9 25.7 8.7 2.8 10 20.0 2 1.1
Slide 10: Financial Highlights – EPS & Dividends
Financial Highlights – EPS & Dividends For personal use only Basic EPS - up 21% to 21.9 cents Half year dividends - up 58% to 14.0 cents 30 50 45 FY13 Forecast for EPS of 41 - 43 cps 25 40 35 20 30 19.2 14.5 Cents 25 15 11.0 Cents 8.8 15.9 10.0 20 10 7.2 15 5.5 10.0 7.4 17.4 7.9 5.0 14.0 21.9 10 7.3
Slide 11: Profit and Loss
Profit and Loss For personal use only CHANGE ($m) 1H09 1H10 1H11 1H12 1H13 (1H12 – 1H13) Revenue 16.3 23.4 30.2 39.2 53.6 + 37% Rental assets at cost 75.8 101.6 127.2 167.8 229.8 + 37% EBIT 3.0 5.7 6.4 8.4 11.6 + 39% Net profit after tax (NPAT) 0.8 3.2 3.1 4.2 5.9 + 41% Operating cash flow 9.7 16.7
Slide 12: Financial Position
Financial Position For personal use only ($m) 30 June 2012 31 December 2012 Change Current assets 5.9 9.9 + 69% Rental assets at fair value 129.2 157.7 + 22% Non-current assets 7.1 7.9 + 11% Total assets 142.2 175.5 + 23% Customer deposits and bonds 21.6 25.6 + 18% Current interest bearing debt 1.8
Slide 13: Risk Management
Risk Management For personal use only o Bad debts as a percentage of revenue fell to 0.5% (FY12: 0.7%) in the first half. o Strong asset utilisation with 96% of assets on active contracts. Bad debts and impairments 4.5% 4.3% 4.0% 3.5% 3.5% 3.3% 3.0% 2.9% 2.7% 2.5% 2.2% 2.0% 1.7% 1.4% 1.5% 1.1% 1.5%
Slide 14: Funding
Funding First Half - Rental Asset Funding Source For personal use only o Silver Chef utilises a diverse range of funding to support the growth of the business through the acquisition of assets for rental to clients. 26% o In 1H13 the Company acquired $65.6m worth of rental assets at cost of which 74
Slide 15: Outlook
For personal use only 12 months to 30 June, 2013 OUTLOOK 15
Slide 16: Strategy Update
Strategy Update For personal use only o Long term strategic plan in Customer Experience place to 2020. Develop an entrenched organisational focus on enhancing customer o FY2013 is Year 3 of Plan. experience. Maintaining Growth Adequate o Follows the Argenti System. Focus on organic growth Resources
Slide 17: Outlook
Outlook o On-track to meet full year guidance of Earnings per Share (EPS) of between For personal use only 41 and 43 cents per share. o Continued steady growth expected for remainder of year across both brands – Silver Chef and GoGetta. o Franchise sector penetration set to grow further. o Growth op
Slide 18: Appendices
18 For personal use only APPENDICES
Slide 19: Corporate Overview
Corporate Overview PROFILE ASX DETAILS For personal use only Employees 144 (as at 31 December, 2012) Listed 5 June, 2005 Sector 20: Industrials GICS Total Shares on issue 27,222,919 Industry Group: 2010 Capital Goods Silver Chef Limited (SIV) provides equipment funding to small-to-medium Operations
Slide 20: Business Model – Simple, Predictable & Sustainable
Business Model – Simple, Predictable & Sustainable o Rental assets only acquired for For personal use only specific rental contracts o Standard rental charged weekly by direct debit in advance o Minimum 12 month contract for customers provides recurring income o At the end of the contract, customer
Slide 21: Building Shareholder Value
Building Shareholder Value For personal use only 30.0% 40.0 37.4 26.3% 26.4% 25.4% 35.0 25.0% 24.1% 23.6% 21.7% 22.0% 30.0 29.7 20.0% 17.1% EPS (cents per share) 26.6 25.0 15.1% 22.5 14.6% 14.5% 14.6% 15.0% 20.0 13.5% 12.1% 12.5% 17.5 11.4% 16.1 15.0 10.0% 12.2 10.0 9.9 5.0% 5.0 0.0% 0.0 FY05 FY06 F
Slide 22: Building Value – Key Metrics (FY12)
Building Value – Key Metrics (FY12) For personal use only CAGR Change FY05 to FY12 FY 11 v FY 12 Rental income 37% 34% Rental assets at cost 35% 31% Net profit before tax (NPBT) 42% 35% Net profit after tax (NPAT) 41% 34% Operating cash flow 41% 30% Basic EPS 21% 26% Total di
Slide 23: Risk Management - Overview
Risk Management - Overview For personal use only o Silver Chef is exposed to two fundamental and ongoing risks; 1. credit and financial risk exposure to customers; and 2. residual asset risk inherent in the rental asset base. o The Company has over 12,000 rental agreements in place so risk is spread
Slide 24: Disclaimer
Disclaimer Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Persons needing advice should For personal use only consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal advi