Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — H1 FY2012 Earnings Presentation
21 slides from Siv Capital's earnings presentation, Mar 8, 2012
Slide 1: FY12 Half Year Results Investor Presentation
For personal use only SILVER CHEF LIMITED (SIV) FY12 Half Year Results Investor Presentation Charles Gregory, Chief Executive Officer David Wilson, Chief Financial Officer
Slide 2: Agenda
Agenda For personal use only • Introduction • Financial highlights • Operations • New initiatives • Financials • Risk management • Funding • Outlook 2
Slide 3: Introduction – About Silver Chef
Introduction – 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 caterin
Slide 4: 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 5: 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 5
Slide 6: 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 8 7 6 5 4 3 2nd Half 2 1st Half 1 0 2008 2009 2010 2011 2012 * For full FY2012, reflects full year guidance 6
Slide 7: 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 7
Slide 8: 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% 8
Slide 9: 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 9
Slide 10: 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% 10
Slide 11: Statement of Comprehensive Income
Statement of Comprehensive Income 31-Dec-11 31-Dec-10 For personal use only $000’s $000’s • Increased revenue off growing asset Revenue 39,234 30,155 base Expenses from ordinary activities (28,212) (22,288) Finance costs (2,418) (2,142) • Effective risk management has Change in fair value of derivat
Slide 12: Statement of Financial Position
Statement of Financial Position For personal use only 31-Dec-11 30-Jun-11 There is a more detailed $000’s $000’s breakdown of assets and liabilities ASSETS in the appendix 4D lodged for HY Current assets 8,581 6,671 Non-current assets 121,705 100,001 31 Dec 2011 TOTAL ASSETS 130,286 106,672 •Non-cur
Slide 13: 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 14: Risk Management - Credit Risk
Risk Management - Credit Risk For personal use only • Bad debts less than 1% of revenue • Drivers: – Robust model • Rental bond received in advance • Weekly direct debits in advance • No client larger than 1% of assets under management – Skilled and sufficiently resourced credit approval and recover
Slide 15: 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 15
Slide 16: 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 16
Slide 17: 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 17 17
Slide 18: Outlook
Outlook 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 35c, NPAT
Slide 19: 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 20: Disclaimer
For personal use only Disclaimer Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal advi
Slide 21: FY12 Half Year Results
For personal use only FY12 Half Year Results Investor Presentation Silver Chef Limited (SIV)