Slide 1: Investor Presentation 31 December 2016 Results
For personal use only Investor Presentation 31 December 2016 Results
Slide 2: Disclaimer
1986 2005 2008 2011 2013 2016 For personal use only Silver Chef established Silver Chef Launched Silver Chef Silver Chef Silver Chef by Non-Executive listed GoGetta in New Zealand Canada 30 Year Chairman Allan English on ASX Australia established established Anniversary DISCLAIMER Silver Chef Limite
Slide 3: Performance Highlights
SILVER CHEF GROUP For personal use only PERFORMANCE HIGHLIGHTS Excellent growth in domestic hospitality rental base up 18%* on 30 June 2016 GoGetta volume reduction in response to improved customer quality measures Canadian rental asset base up 54% on 30 June 2016, with acquisitions up 49%# NZ asset
Slide 4: Satisfactory Half Year Performance
SILVER CHEF GROUP – SATISFACTORY HALF YEAR PERFORMANCE For personal use only 1H17 1H16 Change Revenue ($ millions) $137.8m $100.7m 37% Rental assets (at cost) and lease receivables ($ millions) * $624.2m $446.8m 40% NPAT ($ millions) $4.6m $10.3m (55%) Underlying NPAT ($ millions)# $6.9m $7.6m (9%)
Slide 5: Good Growth in Originations with Increased Focus on Quality Customers
GOOD GROWTH IN ORIGINATIONS WITH INCREASED FOCUS ON QUALITY CUSTOMERS For personal use only COST VALUE OF RENTAL ASSETS GROUP ORIGINATIONS (RENTAL ASSET AND WDV OF LEASE RECEIVABLES ACQUISTIONS AND ADVANTAGE)* Cost Value of Silver Chef rental assets Cost Value of GoGetta rental assets SilverChef Ren
Slide 6: Half Year Earnings Analysis
HALF YEAR EARNINGS ANALYSIS UNDERLYING EARNINGS BRIDGE 1H16 TO 1H17 ($M) UNDERLYING EARNINGS BRIDGE 1H17 TO 2H17 ($M) For personal use only • Strong margin on asset base growth, but at a lower yield due to • GoGetta average yield improvement post rental rate rise in May 2016 weighting towards GoGett
Slide 7: Hospitality
HOSPITALITY For personal use only Continued strong growth in Canada through expansion into eastern Strong underlying growth (23%) in domestic hospitality originations provinces Expansion of New Zealand office generating significant growth New key account management approach yielding good results SIL
Slide 8: Hospitality - Australia
HOSPITALITY AUSTRALIA For personal use only KEY DIVISIONAL STATISTICS 1H17 2H16 Rental asset numbers 67,113 62,599 Originations including Advantage (AUD) $77.4m $57.8m* Rental assets at cost (AUD) $239.6m $212.3m Rental asset WDV (AUD) $155.2m $133.5m • Focus on key dealers driving significant growt
Slide 9: Hospitality - Canada
HOSPITALITY CANADA For personal use only KEY DIVISIONAL STATISTICS 1H17 2H16 Rental asset numbers 6,893 4,679 CALGARY Originations including Advantage (AUD) $10.4m $5.8m* VANCOUVER TORONTO Rental asset costs (AUD) $22.3m $14.5m Rental asset WDV (AUD) $18.1m $11.9m • Rental asset acquisitions increas
Slide 10: Hospitality - New Zealand
HOSPITALITY NEW ZEALAND AUCKLAND For personal use only KEY DIVISIONAL STATISTICS 1H17 2H16 Rental asset numbers 6,086 5,359 CHRISTCHURCH Originations including Advantage (AUD) $8.3m $4.8m* Rental asset costs (AUD) $21.9m $18.1m Rental asset WDV (AUD) $14.9m $12.0m Finance lease receivable (AUD) $3.2
Slide 11: GoGetta Growth
GOGETTA GROWTH For personal use only Tightening of credit policy controls, particularly in light commercial Strengthening broker and vendor relationship in key asset classes sector, to drive reduced provisioning and increased yield Actions taken to improve fraud prevention controls Significant deman
Slide 12: GoGetta Growth - Key Divisional Statistics
GOGETTA GROWTH For personal use only KEY DIVISIONAL STATISTICS 1H17 2H16 GOGETTA RENTAL ASSET BASE BY SECTOR Rental asset numbers 17,530 18,040 13% 11% Originations including Advantage (AUD) $76.9m $85.1m* 3% 2% Construction Rental assets at cost (AUD) $236.9m $205.4m Fitness Rental asset WDV (AUD)
Slide 13: Response to Fraud Event
RESPONSE TO FRAUD EVENT For personal use only CIRCUMSTANCES MANAGEMENT RESPONSE • Fraudulent customers worked with • Introduced new third party customer evaluation software to give insight into fraudulent vendors to defraud GoGetta of financial behaviour and to verify customers’ identity against an
Slide 14: Capital Management
CAPITAL MANAGEMENT For personal use only In advanced negotiations of commercial terms for securitisation Lease receivables increased to $80m available for immediate funding solution securitisation Strong first half cashflow performance reduced reliance on external Group senior debt facility extended
Slide 15: Capital Management
CAPITAL MANAGEMENT For personal use only EQUITY SECURITISATION WAREHOUSE STRATEGY INDICATIVE TERMS • Support from two major Australian banks • Reinvestment of cash operating profits of • Deliver securitisation warehouse for $83.7m into rental asset base • Improved financial leverage without availabi
Slide 16: Credit and Residual Asset Risk
CREDIT AND RESIDUAL ASSET RISK For personal use only HOSPITALITY BAD DEBTS AND IMPAIRMENT LOSS GOGETTA BAD DEBTS AND IMPAIRMENT LOSS 3.5% 8.0% 7.6% 2.9% 3.0% 3.0% 2.7% 7.0% 2.5% 2.5% 6.0% 2.1% 4.9% 5.0% 4.3% 2.0% 1.6% 3.7% 4.0% 3.5% 3.5% 1.3% 2.9% 1.5% 1.2% 1.2% 2.8% 0.9% 3.0% 1.0% 0.6% 0.6% 1.2% 0.
Slide 17: Profit and Loss
PROFIT AND LOSS For personal use only $ millions 1H16 1H17 Change Revenue 100.7 137.8 37% Expenses from ordinary activities (30.5) (43.2) 42% • Strong revenue growth from increase in asset base Loss on sale of plant and equipment (3.9) (5.1) 31% Earnings before interest, depreciation, amortisation,
Slide 18: Financial Position
FINANCIAL POSITION For personal use only • Significant growth in fixed $ millions FY16 1H17 Change asset base driven from strong ASSETS acquisition volumes Cash 5.7 8.5 49% • Strong growth in long term Trade receivables and other 15.1 23.7 57% lease portfolio Lease receivables 65.3 81.1 24% • Arrear
Slide 19: Cash Flow
CASH FLOW For personal use only • Operating cash flow up due to $ millions 1H16 1H17 Change increase in rental asset base Net cash from operating activities 53.5 83.7 56% • Significant stabilisation in debt Payments for plant and equipment (150.3) (185.9) 24% drawdown rate as acquisition rates norma
Slide 20: Excellent Ongoing Customer Satisfaction Levels
EXCELLENT ONGOING CUSTOMER SATISFACTION LEVELS For personal use only • Silver Chef strives to maintain a reputation of exceptional customer and partner experience by using insights and customer first thinking to deliver quick, easy, +72 personalised experiences which cannot be delivered by other equ
Slide 21: We Are a B Corp Organisation
WE ARE A “B CORP” ORGANISATION For personal use only We believe a successful, sustainable commercial enterprise requires As a B Corporation, Silver Chef has an ongoing commitment to building a alignment of our activities around a values driven framework and a desire to sustainable modern business. T
Slide 22: Creating Stakeholder Value - The Silver Chef Approach
Creating Stakeholder Value – The Silver Chef Approach For personal use only B-Corp • Silver Chef believes that a strong core purpose leads to success within every aspect of its business Increased Engaged and Profits Happy Staff • Maintaining a higher purpose driven culture as reflected by Silver Che
Slide 23: Strategy and Outlook
STRATEGY AND OUTLOOK For personal use only Strong 2H17 earnings skew, driven by improved GoGetta contract yield and improved cost management Full year earnings guidance $21 - $23m, underlying $23 - $25m Strong acquisition growth rate in Canada Buoyant domestic and New Zealand hospitality market cond
Slide 24: About Silver Chef Limited
For personal use only ABOUT SILVER CHEF LIMITED SILVER CHEF GROUP 24
Slide 25: Product and Key Features
PRODUCT AND KEY FEATURES For personal use only RentTryBuy Initial Offering (RTB) Customer Decision at 12 Months Purchase Continue Renting Upgrade Return Equipment* Easy Own Subsequent Decision Go.Own.Plus Continue RTB Retention (LTR) Customer Decision in Further 12 Months Purchase Return Equipment*
Slide 26: Organisation Chart
ORGANISATION CHART For personal use only Chief Executive Officer Damien Guivarra Executive General Manager Executive General Manager Executive General Manager Group Sales & Chief Financial Officer Head of People and Culture Northern Region Southern Region Canada Marketing Manager Doug McAlpine Mike
Slide 27: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only DAMIEN GUIVARRA DOUG MCALPINE CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Mr Damien Guivarra was appointed to the role of Chief Doug is a Chartered Accountant and commenced as Silver Chef's Operating Officer in October 2015. Over the last ten yea
Slide 28: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only ROB PHELPS KRISTIAN THANAS MIKE CONNELL EXECUTIVE GENERAL MANAGER EXECUTIVE GENERAL MANAGER HEAD OF PEOPLE AND CULTURE NORTHERN REGION CANADA Robert has more than 25 years of experience in the financial Kristian joined Silver Chef in 2012 as part of
Slide 29: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only KEVIN SAVVAS SIMONE SMITH-HENRY VINNIE D’ALESSANDRO GROUP SALES & MARKETING MANAGER GROUP PROJECT MANAGER IT MANAGER Kevin Savvas started with the Company in 2011 as the Simone is responsible for Project Management and Vinnie D'Alessandro joined Silv
Slide 30: Company Directory
COMPANY DIRECTORY For personal use only Company Secretary Don Mackenzie Share Register Boardroom Pty Limited GPO Box 3993 Sydney NSW 2001 Phone: 1300 737 760 Fax: 1300 653 459 Website: www.boardroomlimited.com.au Securities Exchange The Company is listed on the Australian Securities Exchange (SIV.AX