Slide 1: For personal use only
For personal use only
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 Executive Chairman listed GoGetta in New Zealand Canada 30 Year Allan English on ASX Australia established established Anniversary DISCLAIMER Silver Chef Limited ha
Slide 3: Excellent Year of Growth: Performance Highlights
SILVER CHEF GROUP – EXCELLENT YEAR OF GROWTH For personal use only PERFORMANCE HIGHLIGHTS Total contract originations up 67% to $303.0 million Rental assets and lease receivables up 50% to $539.2 million * Profit (after tax) up 45% to $22.4 million; $23.4 million after adjusting for one- off loan no
Slide 4: Outstanding Year on Year Growth
SILVER CHEF GROUP – OUTSTANDING YEAR ON YEAR GROWTH For personal use only FY16 FY15 Change Revenue ($ millions) $221.1m $171.0m 29% Rental assets (at cost) and lease receivables ($ millions) * $539.2m $358.9m 50% NPAT ($ millions) $22.4m $15.5m 45% NPAT before one-off loan note break costs ($ millio
Slide 5: Growth Surpassed Expectations in Both Brands
GROWTH SURPASSED EXPECTATIONS IN BOTH BRANDS For personal use only COST VALUE OF RENTAL ASSETS GROUP ORIGINATIONS (RENTAL ASSET AND WDV OF LEASE RECEIVABLES* ACQUISTIONS AND ADVANTAGE)* 600.0 350 Cost Value of Silver Chef rental assets Cost Value of GoGetta rental assets SilverChef Rental GoGetta Re
Slide 6: Strong Current and Future Revenue from Asset Base
STRONG CURRENT AND FUTURE REVENUE FROM ASSET BASE For personal use only ASSETS BY SEGMENT Revenue up 29% to $221.1 million 47% Hospitality Australia Hospitality revenue up 14% to $125.5 million Hospitality New Zealand Hospitality Canada GoGetta revenue up 56% to $89.5 million FY16 3% 4% GoGetta GoGe
Slide 7: Hospitality
HOSPITALITY For personal use only Growth in the Company’s key channels of restaurants, franchises, Prospects for our business in Canada are strong and we have cafes and bars remains strong accelerated our roll-out strategy to the Eastern Provinces The Silver Chef business in Australia and New Zealan
Slide 8: Hospitality Australia: Key Divisional Statistics
HOSPITALITY AUSTRALIA For personal use only KEY DIVISIONAL STATISTICS Rental asset numbers 62,599 Rental assets at cost $219.2m Rental asset WDV $136.8m • 31% growth in domestic rental asset originations Finance lease receivable $43.9m • 14% growth in rental asset base Average contract life 29 month
Slide 9: Australia Hospitality Market Outlook
AUSTRALIA HOSPITALITY MARKET OUTLOOK For personal use only CULTURE AND RECREATIONAL EXPENDITURE 120.00 100.00 80.00 • The hospitality industry continues to maintain strong growth despite being a mature market in Australia 60.00 $AUDbn • Australia’s love of coffee has continued with 7.4% annual 40.00
Slide 10: Hospitality Canada
HOSPITALITY CANADA For personal use only KEY DIVISIONAL STATISTICS Rental asset numbers 4,679 CALGARY Rental asset costs AUD $14.5m VANCOUVER Rental asset WDV AUD $11.9m TORONTO Finance lease receivable AUD $1.4m • Canadian asset base has reached AU $16 million - double from Customer numbers 904 pre
Slide 11: Hospitality New Zealand
HOSPITALITY NEW ZEALAND AUCKLAND For personal use only KEY DIVISIONAL STATISTICS Rental asset numbers 5,359 Rental asset costs AUD $18.1m CHRISTCHURCH Rental asset WDV AUD $12.0m Finance lease receivable AUD $0.9m Customer numbers 893 • 33% growth in acquisitions from FY15 Population1 Foodservice Ma
Slide 12: Profitable Hospitality
PROFITABLE HOSPITALITY For personal use only • In March 2016, Silver Chef acquired Profitable Hospitality, an online membership community focused on providing entrepreneurs with the essential tools and advice to operate a successful hospitality business • Profitable Hospitality is a key part of the
Slide 13: GoGetta Growth
GOGETTA GROWTH For personal use only Record breaking acquisitions for the year ending Significant upfront acquisition costs incurred in the year, driving need 30 June 2016 (84% growth) to adopt cost deferral policy Continued focus on transport and construction sectors – light Growth in rental asset
Slide 14: GoGetta Growth: Key Divisional Statistics
GOGETTA GROWTH For personal use only KEY DIVISIONAL STATISTICS – GOGETTA GOGTTA RENTAL ASSET BASE BY SECTOR Rental asset numbers 18,040 2% 2% Rental assets at cost $222.1m 11% 11% 3% Agricultural Rental asset WDV $171.9m 3% Construction Fitness Finance lease receivables $19.1m Hospitality Light Comm
Slide 15: GoGetta Market Outlook
GOGETTA MARKET OUTLOOK For personal use only ROAD FREIGHT TRANSPORT IN AUSTRALIA $50,000 $46,000 $42,000 $AUDm $38,000 • Road Freight Transport in Australia is expected to grow at an annualised 2.5% over the next five years $34,000 • Housing and apartment construction each set to continue growing at
Slide 16: Capital Management
CAPITAL MANAGEMENT For personal use only Long term rental book now > $60 million Extension of group debt facility to $400m providing further capacity to fund future growth $110.6 million of debt drawn in year to 30 June under Syndicated Progressing evaluation of other funding options including whole
Slide 17: Capital Management: Equity, Debt, Funding Strategy
CAPITAL MANAGEMENT For personal use only EQUITY DEBT FUNDING STRATEGY • Gross gearing no more than 70% • New five bank senior syndicated debt • Evaluating wholesale funding alternatives facility improved maturity to the group’s including securitisation structures in • Reinvestment of cash operating
Slide 18: Credit and Residual Asset Risk
CREDIT AND RESIDUAL ASSET RISK For personal use only • 59.2% increase in total assets (rentals and BAD DEBTS AND IMPAIRMENT LOSS lease receivables) with only 0.2% rise in bad debts over revenue 4.0% 3.5% • Bad debt still trending within desired 3.3% 3.4% 3.5% range of 2.5% - 3.5% of revenue for the
Slide 19: Earnings and Returns
EARNINGS AND RETURNS For personal use only 30.00% 75 68.9 25.00% 24.1% 23.6% 65 22.1% 20.2% 20.5% 21.0% 55 20.00% 51.4 42.0 45 Cents 14.5% 43.4 15.00% 14.6% 41.4 37.3 12.2% 36.0 14.1% 13.9% 35 12.3% 10.00% 29.6 28.5 30.0 25 20.0 20.5 5.00% 15 0.00% 5 FY11 FY12 FY13 FY14 FY15 FY16 ROA ROE Dividend pe
Slide 20: Growth Requires Deferral of Upfront Lease Origination Costs
GROWTH REQUIRES DEFERRAL OF UPFRONT LEASE ORIGINATION COSTS For personal use only • Silver Chef has historically experienced • The accounting impact of expensing as • The deferral policy has been applied with relatively constant growth in upfront incurred as opposed to deferring over the effect from
Slide 21: Profit and Loss
PROFIT AND LOSS For personal use only $ millions FY12 FY13 FY14 FY15 FY16* • Strong revenue growth driven from significant increase in Revenue 84.2 114.4 141.3 171.0 221.1 asset base Expenses from ordinary activities (25.6) (33.8) (42.6) (57.9) (65.3) • Depreciation and loss on sale Loss on sale of
Slide 22: Financial Position
FINANCIAL POSITION For personal use only $ millions FY12 FY13 FY14 FY15 FY16 • Significant growth in fixed asset base driven from record ASSETS acquisitions Cash 0.7 1.3 1.5 1.6 5.7 • Strong growth in long term Trade receivables and other 2.6 3.9 5.6 8.0 15.1 lease portfolio Lease receivables - - 11
Slide 23: Cash Flow
CASH FLOW For personal use only • Operating cash flow $ millions FY12 FY13 FY14 FY15 FY16 significantly impacted by Net cash from operating activities 56.4 75.3 89.4 103.3 119.7 upfront costs of acquisitions Payments for plant and equipment (94.4) (126.1) (139.1) (184.0) (305.0) • Significant draw d
Slide 24: Excellent Ongoing Customer Satisfaction Levels
EXCELLENT ONGOING CUSTOMER SATISFACTION LEVELS For personal use only • Silver Chef strives to maintain a reputation of exceptional service by using insights and customer-first thinking to deliver +68 quick, easy, personalised experiences • This focus means we can delight our customers and improve ou
Slide 25: We Are a B Corp Organisation
WE ARE A “B CORP” ORGANISATION For personal use only We believe successful, sustainable commercial enterprises require alignment of their B Corporations are an emerging group of companies that are using the power of business activities around a values driven framework and a desire to make a wider co
Slide 26: Strategy and Outlook
STRATEGY AND OUTLOOK For personal use only Leadership succession Continued strong underlying outlook for domestic hospitality Sustainable growth in GoGetta, particularly within the transport and light commercial channels Build momentum in Canada and aggressively grow the asset base Continued success
Slide 27: About Silver Chef Limited
ABOUT SILVER CHEF LIMITED For personal use only SILVER CHEF GROUP 27
Slide 28: Company Overview
COMPANY OVERVIEW For personal use only ASX Trading Information Key performance measures Share Price 24th August 2016 $ 10.35 Dividend 42.0 cents 52-w Trading Range $7.67 – $11.73 EPS 68.9 cents Issued Shares 35,152 Market Capitalisation $363.8m Debt 30th June 2016 $ 250.1m Cash/Term Deposits 30th Ju
Slide 29: 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 30: Organisation Chart
ORGANISATION CHART For personal use only Executive Chairman Allan English Head of People and Chief Operations Officer Chief Financial Officer Culture Damien Guivarra Doug McAlpine Mike Connell Executive General Manager Executive General Manager Executive General Manager Group Sales & Marketing North
Slide 31: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only ALLAN ENGLISH DAMIEN GUIVARRA DOUG MCALPINE EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER (DESIGNATE) CHIEF FINANCIAL OFFICER The founder of Silver Chef Limited, Allan has had extensive Mr Damien Guivarra was appointed to the role of Chief Doug is a Cha
Slide 32: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only SYLVIA PO-CHING ROB PHELPS KRISTIAN THANAS EXECUTIVE GENERAL MANAGER EXECUTIVE GENERAL MANAGER EXECUTIVE GENERAL MANAGER SOUTHERN REGION NORTHERN REGION CANADA The longest serving member of Silver Chef Group's leadership Robert has more than 25 years
Slide 33: Silver Chef Leadership Team
SILVER CHEF LEADERSHIP TEAM For personal use only MIKE CONNELL KEVIN SAVVAS Simone Smith-Henry Vinnie D’Alessandro HEAD OF PEOPLE AND CULTURE GROUP SALES & MARKETING MANAGER GROUP PROJECT MANAGER IT MANAGER Mike Connell joined the company in January 2016. Kevin Savvas started with the Company in 201
Slide 34: 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