Siv Capital Limited · ASX:SIV

Siv Capital — Silver Chef — H1 2011 Earnings Presentation

36 slides from Siv Capital's earnings presentation, Mar 7, 2011

  1. Slide 1: Silver Chef Limited (SIV) 1H 2011 Results Presentation

    For personal use only Silver Chef Limited (SIV) 1H 2011 RESULTS PRESENTATION

  2. Slide 2: Charles Gregory, CEO & Neil Burton, CFO

    Silver Chef (SIV) 1H 2011 For personal use only CHARLES GREGORY, CEO & NEIL BURTON, CFO 2

  3. Slide 3: Agenda

    Silver Chef (SIV) 1H 2011 For personal use only • FINANCIAL HIGHLIGHTS • OPERATIONS • KEY FINANCIALS • BUSINESS DRIVERS & FUNDAMENTALS • OUTLOOK • SUMMARY 3

  4. Slide 4: Financial Highlights

    Silver Chef (SIV) 1H 2011 For personal use only FINANCIAL HIGHLIGHTS 4

  5. Slide 5: Highlights – 1H 2011

    Highlights – 1H 2011 For personal use only • Rental revenues $30.1m up 29% • EBITDA $19.48m up 22% • NPBT steady, $4.23m • Interim fully-franked dividend 9cps vs 8cps up 12.5% 5

  6. Slide 6: Rental Revenues - up 29%

    Silver Chef (SIV) 1H 2011 For personal use only Rental Revenues - up 29% Revenue #039;000 50,000 45,000 40,000 35,000 30,000 2nd half 25,000 20,000 Ist Half 15,000 10,000 5,000 - 2006 2007 2008 2009 2010 2011 6

  7. Slide 7: EBITDA - up 22%

    Silver Chef (SIV) 1H 2011 For personal use only EBITDA - up 22% EBITDA #039;000 35,000 30,000 25,000 20,000 2nd half 15,000 Ist Half 10,000 5,000 - 2006 2007 2008 2009 2010 2011

  8. Slide 8: Dividends - up 12.5%

    Silver Chef (SIV) 1H 2011 For personal use only DIVIDENDS - up 12.5% Dividend Performance (cents per share) 18.0 16.0 14.0 12.0 10.0 Final 8.0 Interim 6.0 4.0 2.0 - 2006 2007 2008 2009 2010 2011

  9. Slide 9: Operations Update

    Silver Chef (SIV) 1H 2011 For personal use only OPERATIONS UPDATE 9

  10. Slide 10: Rental assets and cash flows

    Silver Chef (SIV) 1H 2011 For personal use only • Rental assets (at cost) $127.2m up 17% • Rental asset purchases $36.8m up 40.8% • Net operating cash flows $19.95m up 19.3% 10

  11. Slide 11: Rental Assets (at cost) - $127.2m

    Silver Chef (SIV) 1H 2011 For personal use only Rental Assets (at cost) - $127.2m Assets under Management #039;000 140.000 120.000 100.000 80.000 Hospitality as Cost 60.000 GoGetta at Cost 40.000 20.000 - June 06 June 07 June 08 June 09 June 10 Dec-10 11

  12. Slide 12: Divisional performance

    Silver Chef (SIV) 1H 2011 For personal use only Divisional performance • Hospitality - core division • 1H rental revenues $23.5m up 19.45% • GoGetta – established new markets • 1H rental revenues $5.8m up 82.8% 12

  13. Slide 13: Key Financials

    Silver Chef (SIV) 1H 2011 For personal use only KEY FINANCIALS 13

  14. Slide 14: 1H factors

    Silver Chef (SIV) 1H 2011 For personal use only 1H factors: • Write off unamortised borrowing costs ($336k for new facility) • Write down investment property valuation ($248k vs $23k 1H2010) • Tax rate increase to 27.7% from 24.8% ($1.17m vs $1.04m 1H2010) • NPBT steady at $4.23m vs. $4.2m (1H 2010)

  15. Slide 15: EPS

    Silver Chef (SIV) 1H 2011 For personal use only EPS: • Basic EPS 13.8cps (17.79cps: 1H 2010) • Full dilution effect of 5.3m shares issued in Oct/Nov 2009 • Introduction of DRP assisting capital management 15

  16. Slide 16: For personal use only

    Silver Chef (SIV) 1H 2011 For personal use only

  17. Slide 17: For personal use only

    Silver Chef (SIV) 1H 2011 For personal use only

  18. Slide 18: Business Drivers & Fundamentals

    Silver Chef (SIV) 1H 2011 For personal use only BUSINESS DRIVERS & FUNDAMENTALS 18

  19. Slide 19: Fundamentals

    Silver Chef (SIV) – 1H 2011 For personal use only Fundamentals • Operating successfully - 24 years • Model works in good and bad times • Approx 70% annuity-style income 19

  20. Slide 20: Business Drivers

    Silver Chef (SIV) 1H 2011 For personal use only Business Drivers • 400 dealers nationally • Vendor and broker relationships • Franchise market opportunities • Growing demand in SME target market 20

  21. Slide 21: Hospitality Division

    Silver Chef (SIV) 1H 2011 For personal use only Hospitality Division • Core business • Strong base of existing customers • New business potential • Franchise market opportunity 21

  22. Slide 22: GoGetta Division

    Silver Chef (SIV) 1H 2011 For personal use only GoGetta Division • Construction equipment • Trucks and large trailers • Health and gym industry • Bakeries • Establishing new markets 22

  23. Slide 23: Risk Management

    Silver Chef (SIV) 1H 2011 For personal use only Risk Management • Market • Credit • Assets • Funding • Other 23

  24. Slide 24: Risk Management - market

    Silver Chef (SIV) - market For personal use only • 24-year operating history • Market leadership position • Established model with barriers to new entrants • Established business partnerships 24

  25. Slide 25: Risk Management - credit

    Silver Chef (SIV) - credit For personal use only • 13-week rental bond • Weekly direct debit payments in advance • No client larger than 1% of revenue • 50% to 60% credit approval rate 25

  26. Slide 26: Hospitality assets

    Silver Chef (SIV) – Hospitality assets For personal use only 26

  27. Slide 27: GoGetta assets

    Silver Chef (SIV) – GoGetta assets For personal use only 27

  28. Slide 28: Risk Management - funding

    Silver Chef (SIV) - funding For personal use only • $74m interest only CBA facility to August 2013 • $30m interest hedge in place @ 4.46% to June 2011, then 5.25% to 2013 plus margin • Pro Active Interest Rate Risk Management • Strong operating cash flows 28

  29. Slide 29: Risk Management - risk management

    Silver Chef (SIV) – risk management For personal use only • Active Risk Review Process • Risk Identification and Management process • Robust rental model 29

  30. Slide 30: Outlook

    Silver Chef (SIV) 1H 2011 For personal use only OUTLOOK 30

  31. Slide 31: Continuing success

    Silver Chef (SIV) 1H 2011 For personal use only Continuing success: • More SMEs seeking asset flexibility • Potential to grow – rental market vs traditional debt finance • Increase market share, Hospitality • Finding new markets, GoGetta 31

  32. Slide 32: Key points for 2H FY2011

    Silver Chef (SIV) 1H 2011 For personal use only Key points for 2H FY2011 • Strong 1H rental asset purchases • High asset utilisation driving revenue growth 2H - and beyond • Recent natural disasters – no material asset writeoff 32

  33. Slide 33: FY2011 profit guidance maintained

    Silver Chef (SIV) FY 2011 For personal use only FY2011 profit guidance maintained • NPBT $9.5m to $10m up 26% - 33% • NPAT $6.7m to $7m up 21.8% - 27.3% • EPS 31.2cps, up from 28cps 33

  34. Slide 34: Summary

    Silver Chef (SIV) 1H 2011 For personal use only SUMMARY 34

  35. Slide 35: Summary

    Silver Chef (SIV) 1H 2011 For personal use only • Solid 1H growth – revenue, EBITDA & dividends • Increases - rental assets & operating cash flow • FY2011 guidance maintained – EPS 31.2cps vs 28cps • Business plan on track 35

  36. Slide 36: Silver Chef Limited (SIV) 1H 2011 Result Presentation

    For personal use only Silver Chef Limited (SIV) 1H 2011 RESULT PRESENTATION

Silver Chef — H1 2011 Earnings Presentation on 6ix