Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — Investor Presentation (October 2009)
24 slides from Siv Capital's investor presentation, Oct 19, 2009
Slide 1: Capital Raising Presentation
For personal use only Silver Chef Limited (SIV) Capital Raising Presentation Placement and 1 for 4 non- non- renounceable entitlement offer 19 October 2009
Slide 2: Disclaimer
For personal use only Disclaimer •The following disclaimer applies to this presentation and any information provided regarding the information contained in this presentation (the Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentati
Slide 3: Contents
Contents For personal use only 1. Executive summary 2. 2009 Highlights 3. Business Model 4. Historical Financial Performance 5. SIV Outlook 6. Capital Raising 7. Appendix 3
Slide 4: Executive Summary
For personal use only Executive Summary The Business – Established long term rental company in the Hospitality and Other Industries, with a unique Rent. Try. Buy. model – Profitable, Predictable revenue streams, Strong operational cash flow Equity Raising and Transaction Structure – Equity Raising o
Slide 5: Executive Summary
For personal use only Executive Summary Proceeds Applied To – Maximise existing market opportunity, – Maintain growth levels, and – Structure balance sheet to attract further wholesale debt funding Forecast – Forecast EPS fully diluted for FY2010 of 26 cents per share 5
Slide 6: Business Model: Operational Strength & Stability
BUSINESS MODEL For personal use only Operational Strength & Stability • Niche long term rental company predominately in the Hospitality Industry • Organic growth strategy deploying one solution through two core brands – Silver Chef and GoGetta • Rental generating assets over the long term – average
Slide 7: Typical contract profiles and returns
Position at For personal use only Typical Contract 12 months Profiles Client A – Returns Less than 10% Asset Redeployed 12% ROCE Sold OR Rented Client B – Purchases Cash Proceeds Client Dealer SIV Less than 10% Reinvested 30% ROCE Client C – Continues to Rent Approximately 80% Strong returns on rent
Slide 8: Business Model: Key Metrics
BUSINESS MODEL For personal use only Key Metrics High Low Growth Risk 7,500 - rental contracts $10,161 - average contract <1% - largest client / rental income 400+ dealers in Hospitality 85 - vendors in GoGetta High Growth – Low Risk 8
Slide 9: Business Model: Risk Management
BUSINESS MODEL For personal use only Risk Management • Security Bonds • Weekly Rentals • Smart Numbers – DDR Defaults and settlement ratio • Remarketing of ex rental assets & vendor security • Credit Analyst • Largest client < 1% Low Bad Debt : average less than 1.6% of rental income in the past 5 y
Slide 10: Business Model: Products, Same Model
BUSINESS MODEL For personal use only 2 Products Same Model Silver Chef GoGetta Acquisitions in FY2009 $33.3M $8.1M (exceeded budget by 19%) Assets at cost on Rental $76.6M $7.9M Dealers > 400 85 Vendors 47 Finance brokers Average deal size $10,000 $45,000 Rental Equipment Hospitality equipment Multi
Slide 11: 2009 Highlights
For personal use only 2009 Highlights 20% - increase in rental income to $34.9M 16% - increase in operating cash flow to $20.5M 25% - return on shareholders funds (from 22% in 2008) 14 cents - fully franked dividend – for the June 09 financial year 36% - growth of NPAT to $3.6M (assisted by investme
Slide 12: Continued Growth in Rental Assets
For personal use only Continued Growth in Rental Assets • Strong 5 year growth in rental assets with Rental Assets - $m CAGR 39% a CAGR of 39% 100 • Rental contracts are 29 months on 80 average providing Silver Chef with reliable 60 earnings 40 20 • History of repeat business - • Ability to acquire
Slide 13: Historical Financial Performance
Historical Financial Performance For personal use only Revenue - $m CAGR 31% Net Profit Margin CAGR 18% 40.00 12.00% 20.00 6.00% - 0.00% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 C/Flow From Operations - $m Earnings Per Share CAGR 42% cents 25 25 20 15 12.5 10 5 - 0 2005 2006 2007 2008 2009
Slide 14: SIV Outlook
For personal use only SIV Outlook • Hospitality – Increased market share due to enhanced marketing and distribution and in part due to the credit squeeze • GoGetta – point of difference • Current business volumes supported by strong levels of enquiry • Key drivers for growth Dealer incentive program
Slide 15: SIV Outlook
For personal use only SIV Outlook • In discussions for additional debt facilities to support growth • BankWest facility does not mature until 2012 with $30m of debt fixed at 6.46% pa • First quarter ahead of budget • Forecast reported EPS 26 cents per share for FY2010 post capital raising Funding ou
Slide 16: Capital Raising – Offer Summary
For personal use only Capital Raising – Offer Summary Offer structure and size • Institutional placement of approximately $2.5 million • 1 for 4 non-renounceable entitlement offer raising up to $4.0 million (1) • Conditional placement of $0.1million to the Directors requiring shareholder approval Is
Slide 17: Impact of the capital raising
For personal use only Impact of the capital raising Proceeds of the capital raising will be applied Unaudited Proforma Balance Sheet (1) to: • Maximise existing market opportunity • Maintain growth levels • Structure balance sheet to attract further wholesale debt funding • Proceeds of the capital r
Slide 18: Timetable
For personal use only Timetable (subject to final confirmation by the ASX) Placement Key Dates Announcement of the Placement and lift trading halt Monday 19 October Placement settlement Thursday 22 October Quotation of new Placement shares Friday 23 October Entitlement Offer Key Dates • Information
Slide 19: Contacts
For personal use only Contacts Allan English Managing Director (07) 3335-3301 aenglish@silverchef.com.au Charles Gregory Neil Burton Chief Operating Officer Chief Financial Officer (07) 3335-3347 (07) 3335 3322 cgregory@silverchef.com.au nburton@silverchef.com.au 19
Slide 20: Appendices
For personal use only Appendices • Profit and Loss Statement • Balance Sheet • Cash Flow Statement 20
Slide 21: Appendix – Profit and Loss
Appendix 1 – Profit and Loss For personal use only Extract from Silver Chef Ltd Annual Report 2009 Income Statement June 09 June 08 $000 $000 Revenue 35,221 30,659 Expenses (27,544) (22,480) Profit/(loss) on sales of non current assets (544) (575) Change in fair value of investment property (322) (1
Slide 22: Appendix – Balance Sheet
Appendix 2 – Balance Sheet For personal use only Extract from Silver Chef Ltd Annual Report 2009 Balance Sheet June 09 June 08 $000 $000 Current assets Cash and cash equivalents 504 2,526 Trade and other receivables 3,127 2,584 Tax receivables 207 - Investment property held for resale 270 - Other as
Slide 23: Appendix – Cash Flow Analysis
Appendix 3 – Cash Flow Analysis For personal use only Extract from Silver Chef Ltd Annual Report 2009 Statements of Cash Flows June 09 June 08 $000 $000 Cash flows from operating activities Receipts from customers 40,886 32,503 Payments to suppliers and employees (16,105) (9,413) Finance costs paid
Slide 24: Thank you
For personal use only Thank you. 24