Slide 1: Silver Chef Limited (SIV) Rights Issue Presentation
For personal use only SILVER CHEF LIMITED (SIV) Rights Issue Presentation March 2012
Slide 2: Important Notices
Important Notices For personal use only This investor presentation (Presentation) has been prepared by Silver Chef Limited (ABN 28 011 045 828) (SIV or Silver Chef). This Presentation has been prepared in relation to a pro-rata accelerated non-renounceable rights issue of new SIV ordinary shares (Ne
Slide 3: Important Notices (cont.)
Important Notices (cont.) For personal use only Risk An investment in SIV shares is subject to a number of investment and other known and unknown risks, some of which are beyond the control of SIV and which can affect the value of an investment in SIV. SIV does not guarantee any particular rate of r
Slide 4: Agenda
Agenda For personal use only • Rights Issue Overview • About Silver Chef • Financial Highlights • Operations • New Initiatives • Financials • Risk Management • Funding • Outlook & Summary • Risk Factors • Selling Restrictions 4
Slide 5: Rights Issue Overview
Rights Issue Overview For personal use only • Silver Chef is undertaking a 2 for 13 accelerated non-renounceable rights issue to raise to approximately $10.0 million (the Rights Issue) • The funds raised from this Rights Issue, together with the significant extension of Silver Chef’s debt facilities
Slide 6: Key Terms of the Rights Issue
Key Terms of the Rights Issue For personal use only Key details • 2 for 13 accelerated non-renounceable rights issue to raise approximately A$10.0 million Offer • Approximately 3.6 million new Silver Chef ordinary shares to be issued (15.4% of existing shares on structure issue) • Fully underwritten
Slide 7: Rights Issue Timetable
Rights Issue Timetable For personal use only Timetable * Institutional Offer period (under trading halt) 15 – 16 March 2012 Institutional bookbuild opens 15 March 2012 Institutional bookbuild closes 16 March 2012 Ordinary shares recommence trading 19 March 2012 Record Date - 7pm Sydney, Australia ti
Slide 8: About Silver Chef
About Silver Chef For personal use only • Established over two decades ago by Chairman and major shareholder, Allan English, and listed on ASX in 2005 • Provision of equipment funding solutions under two brands: Silver Chef - financing GoGetta - financing commercial commercial catering equipment equ
Slide 9: Financial Highlights - FY12 Half Year Results
Financial Highlights - FY12 Half Year Results For personal use only • Rental assets (at cost) $167.8m up 32% • Rental revenues $39.1m up 30% • NPAT $4.2m up 38% • Basic EPS 18.17c up 32% • Interim fully-franked dividend 9.5cps up 6% • Full year guidance maintained basic EPS – 35c • Intention to main
Slide 10: Financial Highlights - Rental Assets and Revenues
Financial Highlights - FY12 Half Year Results For personal use only Rental assets (at cost) - up 32% to Rental Revenues - up 30% to $39.1m $167.8m *GoGetta established 2008 10
Slide 11: Financial Highlights - NPAT and Operating Cash Flows
Financial Highlights - FY12 Half Year Results For personal use only NPAT - up 38% to $4.2m Net operating cash flows - up 29% to $25.7m * For full FY2012, reflects full year guidance 11
Slide 12: Financial Highlights - EPS and Dividends
Financial Highlights - FY12 Half Year Results For personal use only Earnings per share - up 32% to Dividends - up 0.5cps to 9.5cps 18.17 cents 35 30 25 20 Half Year Full Year 15 10 5 0 2008 2009 2010 2011 2012 *2011 HY includes full dilution effect of 5.3m shares issued Oct/Nov 2009 12
Slide 13: Operations
Operations For personal use only • Growth in rental assets (at cost) $167.8m up 32% • Rental asset purchases $46.7m up 28% • Hospitality division: – rental revenues $27.9m up 19% – rental assets (at cost) $122.5m up 23% • GoGetta: – rental revenues $10.5m up 79% – rental assets $45.3m up 63% 13
Slide 14: New Initiatives
New Initiatives For personal use only • Go.Own.plus – GoGetta long term rental product launched and operating • Franchise sector – Hospitality, over $5m in rental assets acquired in 1st half FY2012 • Overseas expansion – New Zealand launch and operating 14
Slide 15: Financials – Key Ratios
Financials – Key Ratios For personal use only 1H12 FY11 1H11 Interest cover (net profit before tax and interest expenses/interest expense) 3.17x 3.35x 3.32x ROCE (EBIT/(capital + interest bearing debt)) 16.8% 16.7% 15.0% Net margin (NPAT/revenue) 10.7% 10.6% 10.1% 15
Slide 16: Statement of Comprehensive Income
Statement of Comprehensive Income For personal use only 31-Dec-11 31-Dec-10 $000’s $000’s Revenue 39,234 30,155 • Increased revenue off growing Expenses from ordinary activities (28,212) (22,288) asset base Finance costs (2,418) (2,142) Change in fair value of derivative financial • Effective risk m
Slide 17: Statement of Financial Position
Statement of Financial Position For personal use only 31-Dec-11 30-Jun-11 $000’s $000’s There is a more detailed breakdown of ASSETS assets and liabilities in the appendix 4D Current assets 8,581 6,671 lodged for HY 31 Dec 2011 Non-current assets 121,705 100,001 TOTAL ASSETS 130,286 106,672 • Non-cu
Slide 18: Statement of Cash Flows
Statement of Cash Flows For personal use only 31-Dec-11 31-Dec-10 $000’s $000’s Cash flows from operating activities • Strong operating cash flows Receipts from customers 48,536 37,057 Payments to suppliers and employees (17,985) (13,514) Finance costs including interest and other costs paid (2,339)
Slide 19: Risk Management - Credit Risk
Risk Management - Credit Risk For personal use only • Bad debts less than 1% of revenue • Drivers: – Robust model o Rental bond received in advance o Weekly direct debits in advance o No client larger than 1% of assets under management – Skilled and sufficiently resourced credit approval and recover
Slide 20: Risk Management - Hospitality assets
Risk Management - Hospitality assets For personal use only Client returns Silver Chef Asset cleaned equipment service facility & serviced Target FY 2012 80% sold within 60 days of receipt Dealer Web Online sales Rental sales auction 20
Slide 21: Risk Management - GoGetta assets
Risk Management - GoGetta assets For personal use only Client returns equipment to vendor …within 90 days New client Purchase for stock Sale or… new rental contract 21
Slide 22: Funding
Funding For personal use only • CBA facility limit increased to $110m • Capital management aligned towards acceptable levels of debt and equity funding • Interest rate cover 3.17 x 22 22
Slide 23: Predictable and Simple Model
Predictable and Simple Model For personal use only • Rental assets acquired for specific contracts • Standard rental charged per month based on asset cost • Minimum 12 month contract • At the end of the contract, customer either purchases, returns, upgrades or continues renting • Low average contrac
Slide 24: Outlook & Summary
Outlook & Summary For personal use only • Well positioned for second half 2012 • Strong operating cash flows, capacity to access capital markets • Growth opportunities in Australia across Silver Chef and GoGetta • Growth opportunities in New Zealand through Silver Chef • Guidance maintained with EPS
Slide 25: Risk Factors
Risk Factors For personal use only Overview This section identifies what the Directors regard as the key risks associated with an investment in Silver Chef. Shareholders should read the whole of this section in order to fully appreciate those risks before any decision is made to subscribe for New Sh
Slide 26: Risk Factors (cont.)
Risk Factors (cont.) For personal use only Maintenance of reputation and brand name The success of Silver Chef is reliant on its reputation and branding. Unforseen issues or events which place Silver Chef’s reputation at risk may impact on its future growth and profitability. Any factors that dimini
Slide 27: Risk Factors (cont.)
Risk Factors (cont.) For personal use only General investment risks: Share market risk There are general risks associated with any investment in the stock market. The value of Silver Chef's Shares quoted on ASX will be subject to varied and often unpredictable influences on the market for equities i
Slide 28: Selling Restrictions
Selling Restrictions For personal use only International offer restrictions This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. New
Slide 29: Rights Issue Silver Chef Limited (SIV)
For personal use only Rights Issue Investor Presentation Silver Chef Limited (SIV)