Slide 1: First Half 2018 Investor Presentation
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Slide 2: Disclaimer and company milestones
For personal use only Silver Chef established by Silver Chef Silver Chef Silver Chef Silver Chef Non-Executive Chairman listed New Zealand Canada 30 Year Allan English on ASX established established Anniversary Silver Chef Limited has not considered the financial position or needs Words such as ‘ant
Slide 3: Agenda
AGENDA GOGETTA EXIT SILVER CHEF STRAT FIRST HALE RESU CAPITAL MANAGE PEOPLE AND CULTU FULL YEAR OUTLOC DETAILED FINANC
Slide 4: Improved first half, challenging credit, exit decision
For personal use only SILVER CHEF GROUP Improved first half Continued challenging credit profile Decision to exit business 4
Slide 5: Decision to exit GoGetta business
For personal use only Silver Chef Limited (ASX: SIV) has made the decision to exit its GoGetta business Significant change in the strategic focus of the Company Provides a pathway to continued growth and expansion As a result of strategic review the Company has concluded: 1. Although underly
Slide 6: Rationale for GoGetta exit
For personal use only Credit quality – GoGetta consistently inferior credit performance over last ten years Contract performance drives profitability particularly contract duration and churn – GoGetta historically performs worse Intermediary between GoGetta and the customer – relationship and
Slide 7: GoGetta exit impacts and provisions
For personal use only 12 Staff Redeployed to Silver Chef 39 Staff leaving the business Core team retained to manage orderly run-off of GoGetta business over 12 to 18 months Initial restructuring cost estimates expected to be in the order of $3m (before tax) in FY18 Significant challenges i
Slide 8: Silver Chef strategy: one brand, one focus
For personal use only SILVER CHEF GROUP One brand – one focus Streamlined structure International expansion Digital leadership 8
Slide 9: Business transformation project: four pillars
For personal use only Silver Chef business to undergo significant transformation project to unlock the next stage of growth The transformation project will include four pillars: 1. Silver Chef will become a single global brand dedicated solely to hospitality 2. A national restructure of the Aust
Slide 10: Single brand dedicated to hospitality
For personal use only Silver Chef will become a single brand dedicated solely to the hospitality industry Proven 30 year history in delivering growth and profitability in the channel Sharper focus will enable a deeper understanding of both customers and the industry, which will unlock addition
Slide 11: Streamlined structure and management changes
For personal use only Consolidated structure will improve growth and profitability – 3 key drivers: 1. Increasing need for national account strategy due to dealer consolidation 2. Channel focus requires national alignment – eg Franchise 3. Streamlined national structure will allow more cost effect
Slide 12: International expansion in North America and New Zealand
For personal use only A key focus of the Transformation Project is to drive market share and returns from our international operations in North America and New Zealand Both operations provide considerable upside given the large total addressable markets and our small existing market share The
Slide 13: Digital leadership and technology investment
For personal use only Customer Invest additional capital to accelerate development of technology over the next three years Continue to build scalable systems to improve both customer experience and internal efficiencies Three core technology streams: 1. Development of an application portal for
Slide 14: For personal use only
For personal use only SILVER CHEF GROUP 14
Slide 15: First half results summary
For personal use only Hospitality GoGetta Unallocated $ millions Total (pre overhead) (pre overhead) overheads Revenue 87.7 56.3 2.0 146.0 EBITDA 57.7 14.6 (13.5) 58.8 $ millions (unless otherwise stated) 1H18 2H17 Change Profit/(loss) before tax 14.2 (18.3) (14.5) (18.6) Revenue 146.0 137.8 5.9% Ne
Slide 16: Regional performance: Australia, New Zealand, North America
For personal use only Australian hospitality lending business New Zealand business continues to Continue to see North America as a vast continues to perform well with a 6.3% outperform generating strong growth in opportunity and will ensure it has the increase in the rental asset base from 30
Slide 17: Rental assets and finance leases by country
For personal use only Australia Rental Assets (WDV) Australia Finance Leases (CV) New Zealand Rental Assets (WDV) New Zealand Leases (CV) Canada Rental Assets (WDV) Canada Finance Leases (CV) 300 30 30 250 25 25 5.2 5.3 3.4 72.2 200 64.3 20 20 4.6 1.9 51.4 3.2 40.9 150 15 15 33.5 9.0 18.7 0.9 1.6 1.
Slide 18: Key metrics by country
For personal use only Silver Chef (CA) 1H2018 1H2017 Originations Including Advantage (AUD) $8.2m $10.4m Rental Assets at Cost (AUD) $29.4m $22.3m Finance Lease Receivables (AUD) $5.2m $1.9m Rental Asset Numbers 10,607 6,893 Customer Numbers 1,397 1,018 Average Contract Size $11,116 $11,933 Silver C
Slide 19: Capital management
For personal use only SILVER CHEF GROUP Securitisation completed Diversified funding sources One off provisioning recognised in 1H18 Continued strong cash flow 19
Slide 20: Impairment and bad debts
For personal use only 10.0% 9.0% 8.6% Debtors and impairment for half year up on prior periods 8.0% Additional provisioning of $4.8m against hospitality exposures 7.0% as part of repositioning Australian business 6.0% Two larger exposures in the Australian and New Zealand 5.0% 4.8% business re
Slide 21: Senior debt renegotiation and securitisation facility
For personal use only Renegotiation of existing senior lending $200 million securitisation facility agreed on 18 December arrangements has commenced and will conclude by 31 2017 March 2018 Facility designed to finance new Australia rental contracts Financial covenants need to be restructured
Slide 22: For personal use only
For personal use only SILVER CHEF GROUP 22
Slide 23: Certified B Corporation
For personal use only Silver Chef became a Certified B Corporation in June 2015. The B Corporation certification is a validation of Silver Chef’s commitment to social and environmental responsibility B Corporations are an emerging group of companies that are using the power of business to create a p
Slide 24: B Corp recertification score
For personal use only Recertified as a B Corp, improving our score by 10 points, from 83 in 2015 to 93 in 2017 which further verifies us as a company who B Corp Score uses business as a force for good. Key improvements made over this period include: 2015 2017 Average company score of 58 80 requi
Slide 25: Full year outlook
For personal use only SIV to embark on significant Business Transformation Project and wind down GoGetta Business transformation has 4 key pillars: • Single brand – deep understanding of industry • Restructure in AU/NZ to unlock continued growth • Continued aggressive international expansion, partic
Slide 26: For personal use only
For personal use only SILVER CHEF GROUP 26
Slide 27: Statement of profit or loss
For personal use only • Revenue growth reduced due to lower GoGetta acquisitions and slightly softer hospitality acquisitions in Queensland and $ millions 1H17 1H18 Change New South Wales Revenue 137.8 146.0 6.0% • Expenses from ordinary activities up due to additional Expenses from ordinary activit
Slide 28: Statement of financial position
For personal use only • Trade receivables balance affected by additional provisioning • Good growth in lease $ millions FY17* 1H18 Change receivable book year on year ASSETS • Flat rental asset base as a result of lower hospitality and Cash 7.3 13.7 87.7% GoGetta volumes in 1H18 Trade receivables an
Slide 29: Cash flow summary
For personal use only • Growth in operating cash flow in line with revenue and EBITDA growth • Lower acquisition volumes $ millions 1H17* 1H18 Change driving lower payments for plant and equipment and Net cash from operating activities 72.8 75.1 2.3 lower debt requirements Payments for plant and equ
Slide 30: Rent-Try-Buy offering
For personal use only 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 LTR LTR
Slide 31: Contact details
For personal use only Don Mackenzie Boardroom Pty Limited The Company is listed on the Australian Silver Chef Limited, incorporated and GPO Box 3993 Securities Exchange (SIV.AX). domiciled in Australia, is a publicly listed Sydney NSW 2001 company limited by shares. Phone: 1300 737 760 Fax: 1300 653