Slide 1: FY12 Results Investor Presentation
SILVER CHEF LIMITED (SIV) For personal use only FY12 Results SILVER CHEF LIMITED Investor (SIV) Presentation 7 September, 2012 Charles Gregory, Chief Executive Officer David Wilson, Chief Financial Officer 1
Slide 2: Agenda
Agenda For personal use only About Silver Chef FY12 Financial Highlights Risk Management Funding Outlook 2
Slide 3: 1. About Silver Chef
For personal use only 12 months to 30 June, 2012 1. ABOUT SILVER CHEF 3
Slide 4: Company Overview
Company Overview o Established 26 years ago by Chairman and major shareholder, Allan English. For personal use only o Listed on ASX in 2005. o More than 120 employees across Australia and New Zealand. o Provides equipment funding solutions under two brands: Silver Chef and GoGetta o A proven, rental
Slide 5: Business Model – Simple, Predictable & Sustainable
Business Model – Simple, Predictable & Sustainable For personal use only o Rental assets only acquired for specific rental contracts o Standard rental charged weekly by direct debit in advance o Minimum 12-month contract for customers provides recurring income o At the end of the contract, customer
Slide 6: Business Model – Silver Chef (Hospitality)
Business Model – Simple, Predictable & Sustainable Silver Chef (Hospitality) For personal use only o Freedom. Flexibility. Options. o Offers funding for all types of restaurant and catering equipment through standard contracts. o Supports businesses big or small, old or new, in Australia and New Zea
Slide 7: Business Model – GoGetta
Business Model – Simple, Predictable & Sustainable GoGetta For personal use only o Freedom. Flexibility. Options. o Provides funding for commercial equipment requirements of businesses large and small. o Target sectors include fitness, butchery and construction. o Business-friendly terms which ackno
Slide 8: FY12 Results Overview
FY12 Results Overview For personal use only ($m) 30 June 2012 30 June 2011 Change Rental income 84.0 62.7 34% Rental assets at cost 185.4 141.3 31% Net profit before tax (NPBT) 13.1 9.7 35% Net profit after tax (NPAT) 9.0 6.7 34% Operating cash flow 56.4 43.5 30% Basic EPS 37.4 cps 29.7 cp
Slide 9: FY12 Earnings – Key Drivers
FY12 Earnings – Key Drivers Organic Growth For personal use only o Both customer brands - Silver Chef (Hospitality) and GoGetta - delivered organic growth in Australia with rental asset acquisitions at cost in FY12 of $93.0 million, up from $66.7 million in FY11. Resilient Markets o The retail sub-s
Slide 10: Building Value – Total Shareholder Returns
Building Value – Total Shareholder Returns For personal use only 30.0% 40.0 37.4 26.3% 26.4% 25.4% 35.0 25.0% 24.1% 23.6% 21.7% 22.0% 30.0 29.7 20.0% 17.1% EPS (cents per share) 26.6 25.0 15.1% 22.5 14.6% 14.5% 14.6% 15.0% 20.0 13.5% 12.1% 12.5% 17.5 11.4% 16.1 15.0 10.0% 12.2 10.0 9.9 5.0% 5.0 0.0%
Slide 11: Building Value – Key Metrics
Building Value – Key Metrics For personal use only CAGR Change Since listing FY 11 v FY 12 Rental income 37% 34% Rental assets at cost 35% 31% Net profit before tax (NPBT) 42% 35% Net profit after tax (NPAT) 41% 34% Operating cash flow 41% 30% Basic EPS 21% 26% Total dividend
Slide 12: 2. Financial Highlights
For personal use only 12 months to 30 June, 2012 2. FINANCIAL HIGHLIGHTS 12
Slide 13: Financial Highlights – Rental Assets at Cost
Financial Highlights – Rental Assets at Cost For personal use only Rental assets (at cost) under management ($ thousand) o Total rental assets (at cost) - up 31% $200,000 to $185.4m 54,845 $180,000 o Silver Chef assets up 20.2% to $160,000 $130.6m 32,646 o Resilient retail sub-sector (cafes and $140
Slide 14: Financial Highlights – Rental Revenue
Financial Highlights – Rental Revenue For personal use only Rental revenue ($ millions) FY08 FY09 FY10 FY11 FY12 90 84.03 Rental income – Silver 29.09 32.93 42.02 49.24 60.11 Chef (Hospitality) 80 Rental income - 0.65 1.96 7.06 13.48 23.92 GoGetta 70 Total rental revenue 29.15 34.89 49.08 62.73 84.0
Slide 15: Financial Highlights – FY12 Results
Financial Highlights - FY12 Results Net profit after tax (NPAT) up 34% to $9.0 million Operating cash flows up 29.7% $56.4 million For personal use only $10.00 60.00 $56.4m $9.0m $9.00 50.00 $8.00 $43.5m $7.00 $6.7m 40.00 $6.00 $35.2m $5.2m $m $5.00 30.00 $4.00 $3.6m $20.5m 20.00 $17.6m $3.00 $2.6m
Slide 16: Financial Highlights – FY12 EBIT Analysis
Financial Highlights – FY12 EBIT Analysis For personal use only $40,000 ($ thousands) FY12 FY11 Movement 21,284 Income 84,213 62,929 34% $35,000 48 2,056 189 Loss on sale of assets (4,472) (2,416) 85% $30,000 Property impairments and (497) (307) 62% sales $25,000 6,800 Interest swap revaluations (32
Slide 17: Financial Highlights – EPS & Dividends
Financial Highlights – EPS & Dividends Basic EPS – up 26% to 37.4 cents For personal use only Full year dividends – up 20% to 24 cents 40.0 25 37.4 35.0 20 29.7 30.0 26.6 14.5 Cents per Share (cps) Cents per Share (cps) 25.0 22.5 15 11.0 Final 20.0 10.0 Interim 17.5 10 7.2 15.0 5.5 10.0 5.0 10.0 5 9
Slide 18: Operating Expenses
Operating Expenses Operating expenses as percentage of acquisitions For personal use only 40% 37.5% o Asset acquisitions are the significant driver of operating expenses 35% o Have remained constant since FY09 as a percentage of acquisitions 30% 29.4% 28.7% 28.3% 27.1% 25% 25.4% 22.3% 20% 19.2% 15%
Slide 19: Financial Position
Financial Position ($ thousands) 30 June 2012 30 June 2011 Change For personal use only Assets Current assets 5,881 6,671 12% Rental assets at fair value 129,246 94,784 36% Non-current assets 7,072 5,217 36% Total assets 142,199 106,672 33% Liabilities Customer deposits and bonds 21,638 17,1
Slide 20: Strong Cash Flow
Strong Cash Flow $ thousand For personal use only 110,000 Cash flow from equity issues 90,000 Cash flow from borrowings 70,000 Proceeds from asset sales 50,000 30,000 Operating cashflow 10,000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 (10,000) (30,000) Rental Assets (50,000) (70,000) (90,000) Other ca
Slide 21: 3. Risk Management
For personal use only 12 months to 30 June, 2012 3. RISK MANAGEMENT 21
Slide 22: Risk Management - Overview
Risk Management - Overview o Silver Chef is exposed to two fundamental and ongoing risks; credit and financial risk exposure to customers and For personal use only residual asset risk inherent in the rental asset base. o FY12 saw a decline in bad debts as a percentage of revenue to 0.7% (FY11 2.7%).
Slide 23: Risk Management - Hospitality assets
Risk Management - Hospitality assets For personal use only Client returns Silver Chef Asset cleaned equipment service facility & serviced 80% sold within 60 days of receipt Online Dealer sales Rentals Web sales auction 23
Slide 24: 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 24
Slide 25: 4. Funding
For personal use only 12 months to 30 June, 2012 4. FUNDING 25
Slide 26: Funding
Funding FY12 Rental Asset Funding o Silver Chef utilises a diverse range of funding to support the For personal use only growth of the business through the acquisition of assets for rental to clients. 27% o In FY12 the company acquired $93.0m worth of rental assets at cost of which 73% ($67.9m) was
Slide 27: 5. Outlook
For personal use only 12 months to 30 June, 2013 5. OUTLOOK 27
Slide 28: Outlook
Outlook For personal use only o Continuous steady growth expected for 2013 across both brands – Silver Chef and GoGetta o Franchise sector set to grow further o Growth opportunities in New Zealand through Silver Chef o Managing credit and residual asset risk – ongoing management focus o Year 3 of 10
Slide 29: Disclaimer
Disclaimer Silver Chef Limited has not considered the financial position or needs of the recipient in providing this presentation. Persons needing advice For personal use only should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legal advi
Slide 30: FY12 Results Silver Chef Limited (SIV)
For personal use only FY12 Results Investor Presentation Silver Chef Limited (SIV) 30