Siv Capital Limited · ASX:SIV
Siv Capital — Investor Presentation (August 2018)
28 slides from Siv Capital's investor presentation, Aug 30, 2018
Slide 1: 2018 Full Year Investor Presentation
2018 FULL YEAR INVESTOR PRESENTATION SILVER CHEF LIMITED
Slide 2: Disclaimer
1986 2005 2008 2011 2013 2018 Silver Chef established by Silver Chef Launched Silver Chef Silver Chef GoGetta Non-Executive Chairman listed GoGetta in New Zealand Canada Exit and Run Off Allan English on ASX Australia established established DISCLAIMER Silver Chef Limited has not considered the fina
Slide 3: Agenda
Agenda 1. Year in review 2. GoGetta exit and run off process 3. Hospitality review of operations 4. Capital Management 5. Multi-year Transformation Project 6. Future outlook 7. Other information SILVER CHEF LIMITED 2018
Slide 4: Year in Review
Year in Review • Underlying hospitality business remains positive with a net profit before tax of $17.3m • Hospitality rental revenue of $178.4m and $187.0m of originations • Hospitality asset base growth (at cost) of 11.9% to $415.0m • Statutory unaudited net loss after tax of $48.0m following the
Slide 5: Full Year Results Summary
Full Year Results Summary KEY FINANCIAL STATISTICS OVERVIEW OF RESULTS 30 JUNE 2018 – SEGMENT SPLIT $ millions FY17 FY18 Change Hospitality GoGetta Unallocated (unless otherwise stated) $ millions Total (pre overhead) (pre overhead) overheads Revenue 178.4 104.2 4.5 287.1 Revenue 286.0 287.1 0.4% EB
Slide 6: Underlying Earnings Bridge
Underlying Earnings Bridge $ millions The loss constitutes: Hospitality GoGetta Total (unless otherwise stated) • A write down of expected returns from the GoGetta business Underlying ongoing operations 17 - 17 • Customer remediation and related costs Discontinuing operations - (11) (11) • A write o
Slide 7: GoGetta Exit and Run off process
GoGetta Exit and Run off process • On 26 February 2018 the Company announced its decision to exit the GoGetta business • The decision was made in the best interests of the Company’s long term growth and profitability • The Company commenced an orderly run off process in March 2018 • Cash generated a
Slide 8: GoGetta Run Off
GoGetta Run Off ($ millions) Rental Assets Debt 30 June ($ millions) 2018 As at 31 March 2018 140.0 125.0 Net rental assets 91.9 Securitised sell-in April 2018 - (13.0) Net lease receivables 9.3 Customer contract payouts and idle asset sales (21.1) (10.0) Net trade receivables 6.6 Depreciation (11.0
Slide 9: Silver Chef has become a single brand dedicated solely to hospitality
“Silver Chef has become a single brand dedicated solely to hospitality. This sharper focus will enable a deeper understanding of both customers and the industry, which will unlock additional growth in dedicated hospitality channels such as coffee and pubs & clubs” 9 SILVER CHEF LIMITED 2018
Slide 10: Hospitality Review of Operations
Hospitality Review of Operations • Overall hospitality asset base grew to $415.0m up 11.9% from prior financial year • Global originations were $184.6m • Asset base and originations per country were: Closing Closing Growth Originations Originations Growth Hospitality Asset Base Asset Base % FY17 FY1
Slide 11: Hospitality Review of Operations
Hospitality Review of Operations A disappointing year of growth due to: Positive future outlook: • Focus on GoGetta exit • Focus on hospitality will enable deeper customer insights and enable additional • Significant disruption caused by the Canadian management change and the growth in dedicated hos
Slide 12: Hospitality Opportunity for Growth
Hospitality Opportunity for Growth • Australian hospitality market growth is forecast at 2% over five years to 2022- 23 (IBIS World) • The total number of foodservice outlets in Australia is 63,099 - Silver Chef current customer number is 12,642 (Food Industry Foresight) • The New Zealand hospitalit
Slide 13: Hospitality Performance
Hospitality Performance COST VALUE OF RENTAL ASSETS AND LEASE RECEIVABLES Cost Value of Silver Chef Rental Assets Silver Chef Lease Receivables Current Value PORTFOLIO 72.88% - < $15k 450 CONCENTRATION 12.78% - $15k - $25k 400 9.28% - $25k - $50k 350 91.6 3.88% - $50k - $100k 68.1 300 1.18% - Over $
Slide 14: Hospitality Regional Performance
Hospitality Regional Performance RENTAL ASSET BASE GROWTH CANADA Canada Rental Assets (Cost $M) Canada Finance Leases (Carrying Value $M) • Ongoing year on year growth in the global hospitality asset bases 40 35 • Considerable growth in longer term finance lease products in the Canadian 6.8 market 3
Slide 15: Capital Management
Capital Management DEBT EQUITY STRATEGY • New $200 million Securitisation Debt Facility • Final dividend suspended • Diversify funding sources to ensure the availability introduced and drawn to $76m at 30 June 2018 of capital through the economic cycle necessary to • Existing Senior Syndicated Facil
Slide 16: Key Initiatives
Re-engineer Collections Key Initiatives • Prudent, deliberate one off reset of aged book • Undertaken an exhaustive process to ensure credit quality of the book moving forward is maintained • The Company has made the following changes to its credit management framework: – Implementation of a specifi
Slide 17: Multi-Year Transformation Project
Multi-Year Transformation Project 4 KEY PILLARS 1 2 3 4 ONE BRAND, RESTRUCTURE TECHNOLOGY INTERNATIONAL ONE INDUSTRY EXPANSION Leverage 32 years of customer Sets the Group up for the Speed, ease & efficiency No like for like competitor insight and understanding next phase of growth through Pulse in
Slide 18: Future Outlook
Future Outlook • Year of investment - $4m in digital transformation and streamline internal systems • Continue to reduce overheads and streamline operation • Successfully execute multi-year Transformation Project • Leveraging 32 years of history, customer insight - unlock growth opportunities in Aus
Slide 19: Other Information
Other Information SILVER CHEF LIMITED 2018
Slide 20: Financial Results
Financial Results $ millions FY2014 FY2015 FY2016 FY2017 FY2018 Revenue 141.3 171.0 221.1 286.0 287.1 Expenses from ordinary activities (42.6) (57.9) (65.3) (84.7) (139.1) Loss on sale of plant and equipment (5.4) (6.1) (9.1) (9.2) (18.0) Earnings before interest, depreciation, amortisation, impairm
Slide 21: Financial Position
Financial Position $ millions FY2014 FY2015 FY2016 FY2017 FY2018 ASSETS Cash 1.5 1.6 5.7 7.3 29.3 Trade receivables and other 5.6 8.0 15.1 36.2 12.9 Lease receivables 11.5 31.1 65.3 99.5 108.8 Other current assets 0.6 2.3 3.2 2.9 9.8 Rental assets at WDV 188.1 216.0 332.6 374.5 296.4 Other non curre
Slide 22: Cash Flow
Cash Flow $ millions FY2014 FY2015 FY2016 FY2017 FY2018 Net cash from operating activities 89.4 103.3 119.7 152.9 165.9 Payments for plant and equipment (139.1) (184.0) (305.0) (309.5) (248.3) Proceeds from sale of plant and equipment 35.1 48.3 58.3 78.7 93.9 Net proceeds from borrowing 17.4 32.0 11
Slide 23: Global Portfolio
Global Portfolio Silver Chef (CA) FY2017 FY2018 Originations Including Advantage (AUD) $18.6m $18.5m Rental Assets at Cost (AUD) $25.3m $29.3m Silver Chef (NZ) FY2017 FY2018 Finance Lease Receivables (AUD) $3.4m $6.8m Originations Including Advantage (AUD) $14.8m $16.9m Rental Asset Numbers 9,133 14
Slide 24: Products and Key Features
Products and Key Features RentTryBuy Initial Offering (RTB) Customer Decision at 12 Months Purchase Continue Renting Upgrade Return Equipment* Easy Own Subsequent Decision (LTR) Continue RTB Retention Customer Decision in Further 12 Months Purchase Return Equipment* Continue Renting RTB Retention LT
Slide 25: Purpose and Culture
Purpose and Culture SILVER CHEF LIMITED 2018
Slide 26: We Are A B Corp Organisation
We Are A B Corp Organisation Silver Chef was pleased to re-certify as a B- Corp during the course of 2018. This was a significant milestone, particularly as the company’s assessment score grew from 83 to 93. The B Corporation certification is a validation of Silver Chef’s commitment to social and en
Slide 27: A Purpose Driven Business
A purpose Driven Business The Company has always had a strong culture focused on its purpose of helping Net Promoter Score (NPS) is the industry leading customer experience and loyalty people achieve their dreams through its contribution to the community and its metric. Silver Chef has utilised NPS
Slide 28: Company Directory
Company Directory COMPANY SHARE SECURITIES OTHER SECRETARY REGISTER EXCHANGE INFORMATION Cherie O’Riordan Boardroom Pty Limited The Company is listed on the Silver Chef Limited, incorporated GPO Box 3993 Australian Securities Exchange and domiciled in Australia, is a Sydney NSW 2001 (SIV.AX). public