Siv Capital Limited · ASX:SIV
Siv Capital — Silver Chef — H1 FY2010 Earnings Presentation
28 slides from Siv Capital's earnings presentation, Mar 4, 2010
Slide 1: FY2010 Half Year Results Presentation
For personal use only FY2010 Half Year Results Presentation Allan English – Managing Director Charles Gregory – Chief Operating Officer Neil Burton – Chief Financial Officer
Slide 2: Overview
For personal use only Overview Business Model Leadership Team Financial Results Outlook & Guidance Summary
Slide 3: Overview - Financials
For personal use only Overview - Financials • FY2010 EPS guidance upgraded from 26 cents to 28 cents • Rental income up 45% to $23.3m • Net Profit Before Tax $4.2m from $1.1m • Operating cash flow up from $9.7m to $16.7m • Earnings per share on expanded capital base up from 4.9cents to 17.8 cents •
Slide 4: Overview - Operations
For personal use only Overview - Operations Innovator in equipment rental SME-friendly One product – two brands High recurring income streams, asset utilisation Strong leadership team/corporate culture
Slide 5: A market innovator
For personal use only A market innovator • Rent-Try-Buy model has 24-year track record of success • Strong asset remarketing capabilities • Rental agreements are long term • Risk management – weekly direct debit payments means low customer default • Customer base growing - model works in all market
Slide 6: One product – two brands
For personal use only One product – two brands • 2 brands on offer - Silverchef & GoGetta • Targeting commercial equipment rental market • Silverchef – leader in hospitality equipment funding • GoGetta – broader range of commercial equipment • Dual offering has facilitated strong growth • Australia-
Slide 7: Strong leadership team
For personal use only Strong leadership team • CEO succession plan now underway • Smooth transition phase over 2 years • Changes effective July 1, 2010 • Strong, experienced management team
Slide 8: Allan English
For personal use only Allan English • Founder and Managing Director 24 years • Extensive experience in hospitality, equipment sales, service and rental • Moving to non-executive Chairman role July 1, 2010 • Continuing commitment to support management • Maintaining shareholding and participating in D
Slide 9: Charles Gregory
For personal use only Charles Gregory • Chief Operating Officer since July 2008 • 2-year succession plan • Promotion to CEO role effective July 1, 2010 • Extensive experience in management, leadership and driving company growth • 12 years with leading ASX-listed travel group Flight Centre
Slide 10: Experienced Board
For personal use only Experienced Board • Same board since 2005 ASX float • From July 1, 2010 Allan English as Non-Executive Chairman • Role reflects continuing high-level involvement • Current Chairman Andrew Kemp - a non-executive director and Finance Committee Chairman from July 1, 2010 • Bede Ki
Slide 11: Success through Our People
Success through … For personal use only Our People • Core Values: teamwork, respect, attitude, flexibility, integrity and communication • Investing in our people – SilverChef Training Academy • Alignment to company goals and Incentive Based Pay • The Great Place to Work Survey “ Taking everything in
Slide 12: Financial Results
For personal use only Financial Results
Slide 13: Financial Results - Overview
For personal use only Financial Results - Overview • H1 delivers growth in revenue, profit, EPS and DPS • ASX-listed since 2005 • 23.1% average compound EPS growth since listing • Plus fully franked dividends
Slide 14: H1 FY 2010 Financial Results
For personal use only H1 FY 2010 Financial Results • Strong growth in H1 2010 results • Significant lift in rental income and operating cash flow • Increases in NPBT and NPAT • Strong EPS growth • Fully franked dividend doubled • Successful capital raising program during H1 FY2010 – $2.5 million sha
Slide 15: Financials to date… Net operating cash flow
Financials to date… For personal use only Net operating cash flow ($ 000) H1 2010 - up 73% on pcp to $16.7m
Slide 16: EBITDA
For personal use only EBITDA ($ 000) H1 FY2010 - up 52.8% to $16.0m
Slide 17: NPAT
For personal use only NPAT ($ 000) 4,000 3,500 3,000 2,500 2nd ha l f 2,000 Is t Ha l f 1,500 1,000 500 - 2006 2007 2008 2009 2010 H1 - up 288% on pcp to $3.2m
Slide 18: Earnings Per Share (cps)
For personal use only Earnings Per Share (cps) guidance - 28 cps for FY 2010
Slide 19: Dividend performance (cps)
For personal use only Dividend performance (cps) H1 2010 - doubled to 8 cents a share
Slide 20: Risk Management, Funding, Outlook & Growth
For personal use only Risk Management, Funding, Outlook & Growth
Slide 21: Risk Management - Credit and Client Risk
For personal use only Risk Management Credit and Client Risk • Weekly Customer payments • Security bond lodged by Customers • 7,560 clients with the largest being <1% of rental income • Average bad debt write off less than 2% pa of rental income over the past 5 years Predictability Risk • Recurring
Slide 22: Risk Management - Interest Rate and Asset Risk
For personal use only Risk Management Interest Rate Risk • $30 million debt fixed at 6.46% to July 2011 Asset Risk • 95% of assets are earning income
Slide 23: SilverChef Remarketing process
For personal use only SilverChef Remarketing process Client returns Silver Chef Asset Cleaned Service Facility & Serviced equipment Target FY 2010 80% sold or rented within 60 days of receipt Dealer Web Online Rental Sales Sales Auction
Slide 24: GoGetta Remarketing Process
For personal use only GoGetta Remarketing Process Client Returns Equipment to Vendor … within 90 Days New Client Purchase for Stock Sale or … New Rental Contract with GoGetta
Slide 25: Funding
For personal use only Funding • Current facilities with BankWest until July 2011 • Dividend reinvestment plan announced • Internal cash flows generate $40m plus in 2010 …also considering • 2nd Bank Syndication, discussions underway • Debentures, and • Further capital raising
Slide 26: Outlook & Guidance
For personal use only Outlook & Guidance • FY 2010 EPS guidance upgraded to 28 cps from 26 cps • Live rental contracts grow – from 6,500 to 7,560 in 1H • Strong contract renewals • Recurring income streams maintained • Compound average EPS growth rate of 23.1% since 2005 ASX listing
Slide 27: Summary
For personal use only Summary • EPS FY2010 upgrade to 28 cps from 26 cps despite dilution from capital raising • Fully franked dividends - dividend payout 60% to 70% with DRP option • Trading on PE of 7 times FY2010 forecast • 24-year successful track record • $100 million assets under management •
Slide 28: Conclusion - Thank you
For personal use only Conclusion Thank you … Any questions?