Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — Investor Presentation (September 2009)
22 slides from Siv Capital's investor presentation, Sep 23, 2009
Slide 1: Silver Chef Limited
For personal use only Silver Chef Limited
Slide 2: Operational Strength & Stability
For personal use only Operational Strength & Stability • Commercial long term rental of profit generating assets - 29 months • Strong operating cash flows - $ 2 to $ 3m per month and growing • Organic growth strategy deploying one solution through two core brands • Effective risk and asset managemen
Slide 3: 2009 Highlights
For personal use only 2009 Highlights 20% - increase on rental income to $34.9M 16% - increase in operating cash flow to $20.5M 25% - return on shareholders funds (from 22% in 2008) 14 cents - fully franked dividend – for the June 09 financial year 36% - growth of NPAT to $3.6M (assisted by income t
Slide 4: Overview
For personal use only Overview • Established 1986 - IPO 2005 • Rent-Try-Buy rental program 12 month term 75% Rebate Purchase or continue to rent Established Product
Slide 5: Key Metrics
For personal use only Key Metrics High Low Growth Risk 7,000 - rental contracts $10,161 - average contract <1% - largest client / rental income 450 - dealers in Hospitality 85 - vendors in GoGetta High Growth – Low Risk
Slide 6: Hospitality Division – Silver Chef
For personal use only Hospitality Division – Silver Chef $33.3M - acquisitions, $76.6M - assets at cost on rental >400 - dealers nationwide - dealer incentive program supporting acquisition growth >200% - increase in clearance figures, quality and control since launch of Wacol Service Facility for u
Slide 7: Commercial Equipment Division - GoGetta
For personal use only Commercial Equipment Division - GoGetta 19% - over budget est. for Acquisitions, to $8.036M - penetrated multiple industries including compressors audio & lighting, and construction 85 - Vendors appointed to date 47 - Finance Brokers appointed to date Established a nationwide s
Slide 8: Risk Management
For personal use only Risk Management • Security Bonds • Weekly Rentals • Smart Numbers – DDR Defaults and settlement ratio • Remarketing of ex rental Assets • Credit Analyst Low, well managed risk
Slide 9: Financial Highlights
For personal use only Financial Highlights • Strong 5 year growth • Revenue, NPAT and Margin growth • Assets under management & cash flow growth • Shareholder value growth – increased EPS & Dividends Demonstrated Ability
Slide 10: Financial Highlights – Profit
Financial Highlights – Profit For personal use only Revenue - $m CAGR 31% Net Margin CAGR 18% 40.00 12.00% 20.00 6.00% - 0.00% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 NPAT - $m CAGR 55% 4.00 2.00 - 2005 2006 2007 2008 2009
Slide 11: Financial Highlights – Cash flow & Assets
Financial Highlights – Cash flow & For personal use only Assets C/Flow From Operations - $m CAGR 42% 25 20 15 10 Rental Assets - $m CAGR 39% 5 100 - 80 2005 2006 2007 2008 2009 60 40 20 - 2005 2006 2007 2008 2009
Slide 12: Shareholder Value
For personal use only Shareholder Value Earnings Per Share Dividends Per Share cents cents 25 16 12.5 8 0 0 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Return on Average Shareholder Funds 30.00% 15.00% 0.00% 2006 2007 2008 2009
Slide 13: Key Strengths
For personal use only Key Strengths • Weekly payments • Security bonds • Low bad debts, Critical Supplier, Diversified Customer and Distribution base • Resilient model in challenging economic climate • Remarketing ability of Used Assets – Online, Auctions, Dealers, Direct • Strong returns on rental
Slide 14: Outlook
For personal use only Outlook • Hospitality – Increase market share due to credit squeeze • GoGetta – point of difference • EPS growth to 23 cents after dilution • Key drivers for growth Dealer incentive program to maximise sales Wider distribution channels from our GoGetta Vendors Finance Broker ac
Slide 15: Funding
For personal use only Funding • Current business volumes can support $40M in acquisitions • Share issue being investigated • Bank clubbing • 2 years to run on BankWest facility • Dividend reinvestment plan to be introduced • Demonstrated ability to source capital to fund growth Funding our potential
Slide 16: Conclusion
For personal use only Conclusion • We are a long term rental company • Strong forecast growth - RTB model through two core brands • Certainty of future rental streams • Demonstrated, good investor returns.
Slide 17: Contacts
For personal use only Contacts Allan English Managing Director (07) 3335-3301 aenglish@silverchef.com.au Charles Gregory Chief Operating Officer (07) 3335-3347 cgregory@silverchef.com.au
Slide 18: Appendices
For personal use only Appendices • Detailed profit and loss • Detailed Balance Sheet • Detailed Cash flow statement
Slide 19: Appendix – Detailed Profit and Loss
Appendix 1 – Detailed Profit and Loss For personal use only Extract from Silver Chef Ltd Annual Report 2009 Income Statement June 09 June 09 $000 $000 Revenue 35,221 30,659 Expenses (27,544) (22,480) Profit/(loss) on sales of non current assets (544) (575) Change in fair value of investment property
Slide 20: Appendix – Detailed Balance Sheet
Appendix 2 – Detailed Balance Sheet For personal use only Extract from Silver Chef Ltd Annual Report 2009 Balance Sheet June 09 June 09 $000 $000 Current assets Cash and cash equivalents 504 2,526 Trade and other receivables 3,127 2,584 Tax receivables 207 - Investment property held for resale 270 -
Slide 21: Appendix – Detailed Cash Flow Analysis
Appendix 3 – Detailed Cash Flow Analysis For personal use only Extract from Silver Chef Ltd Annual Report 2009 Statements of Cash Flows June 09 June 09 $000 $000 Cash flows from operating activities Receipts from customers 40,886 32,503 Payments to suppliers and employees (16,105) (9,413) Finance co
Slide 22: Thank you.
For personal use only Thank you.