Siv Capital Limited · ASX:SIV
Siv Capital — Investor Presentation (August 2017)
29 slides from Siv Capital's investor presentation, Aug 28, 2017
Slide 1: 2017 Investor Presentation
2017 INVESTOR PRESENTATION ~ SILVER CHE
Slide 2: Silver Chef Group
Silver Chef established by Silver Chef Launched Silver Chef Silver Chef Silver Chef Non-Executive Chairman listed GoGetta in New Zealand Canada 30 Year Allan English on ASX Australia established established Anniversary Silver Chef Limited has not considered the financial position or needs Words such
Slide 3: FY2017 Results Highlights
Net profit after tax of $20.2 million – strong second half performance of $15.6 million and includes one-off asset write FY2017 FY2016 Change (YoY) off for fraud of $2.3 million Consistent strong performance from the Hospitality business Revenue ($ millions) $286.0m $221.1m 29.4% with the rental ass
Slide 4: Silver Chef Rental Assets
Cost Value of Silver Chef Rental Assets Silver Chef Lease Receivables Current Value 77.2% - < $15k Silver Chef Advantage 450 10.6% - $15k - $25k 400 7.4% - $25k - $50k of contracts 350 48.1 below $15k 3.4% - $50k - $100k 24.2 300 25.4 1.4% - Over $100k $ million 250 5.2 21.1 6.1 13.4 200 150 309.9 2
Slide 5: GoGetta Rental Assets
37.6% - < $15k Cost Value of GoGetta Rental Assets GoGetta Lease Receivables Current Value 300 27.8% - $15k - $25k 27.2 21.6% - $25k - $50k 250 of contracts 21.4 under $25k 10.3% - $50k - $100k 200 2.8% - Over $100k $ million 150 12.4 247.8 100 5.4 221.8 50 117.6 84.0 90.1 33.0% - QLD 32.3% - NSW 0
Slide 6: Segment Metrics by Brand and Country
GoGetta FY2016 FY2017 Originations Including Advantage (AUD) $176.6m $140.1m Rental Assets at Cost (AUD) $221.8m $247.8m Finance Lease Receivables (AUD) $21.4m $27.2m Rental Asset Numbers 18,040 15,147 Customer Numbers 7,182 7,418 Average Contract Size $26,090 $26,929 Average Contract Life* 22 month
Slide 7: Impairment and Bad Debts
3.5% 3.1% 7.0% 6.2% 2.9% 3.0% 6.0% 2.5% 4.9% 6.1% 2.5% 5.0% 3.5% 3.7% 3.6% 2.0% 1.6% 4.0% 2.1% 1.3% 1.4% 1.5% 1.2% 3.0% 2.9% 1.0% 0.6% 1.2% 2.0% 0.6% 0.9% 0.5% 1.0% 0.6% 0.0% 0.0% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Impairment Loss to Rental Asset WDV and Lease Receivable Bad Debts to
Slide 8: Arrears
$2.4 Millions $2.2 $2.0 $1.8 $1.6 $1.4 Arrears $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $- Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Associated Arrears (LHS) • Introduction of Credit Sense and tightening of credit processes implemented in Oc
Slide 9: Strategy Pillars
Going deep – channel focus SILVER CHEF GROUP Asset optimisation - maximising returns Leveraging technology Purpose and culture International expansion 9
Slide 10: Channel Focus
• Focus on Hospitality with the Silver Chef brand • In depth understanding of customer, dealer and asset • Unlock profit pools such as franchise, coffee, pubs and clubs, developers and aged care - key to delivering continued growth • Focus on Transport and Construction with the GoGetta brand – shift
Slide 11: Asset Optimisation
• Continued focus both internally and with partners to increase the average contract duration and decrease asset return risk • Growing Silver Chef Certified Used and GoGetta Work Ready brands and distribution channels to minimise cycle times and maximise realisation value • Credit quality initiative
Slide 12: Leveraging Technology
Customer • Streamline customer applications with instant customer verification • Implementation of Company integrated application management portal for dealers and brokers • Automation of contract documentation upon customer approval • Company to gain process efficiencies leading to lower FTE and hi
Slide 13: International Expansion
• The Silver Chef brand continues to achieve significant expansion overseas • Evolution of the NZ business has led to a record breaking year with new acquisitions increasing 51% • The North American strategy remains positive - Canada had another record breaking year with acquisitions up 47% to $18.6
Slide 14: Purpose and Culture
• A global purpose of helping people to achieve their dreams enables Silver Chef to attract, engage and retain employees • Purpose, culture and values are at the centre of everything we do and drive Customer NPS staff satisfaction which leads to satisfied customers – an NPS of 72 of • Achieved throu
Slide 15: Certified B Corporation
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 positive impact on the
Slide 16: Funding Future Growth
SILVER CHEF GROUP Securitisation Diversified funding sources Strong senior banking relationships Funding future growth 16
Slide 17: Securitisation and Funding
• Terms for $200 million Securitisation Debt • Successful implementation of • Build effective long term relationships Facility have been formally approved and securitisation creates a reduced reliance with a diversified group of investors in final stages of documentation on new equity capital over t
Slide 18: Detailed Financials
DETAILED FINANCIALS 18 iN
Slide 19: Income Statement
• Revenue and EBITDA growth slightly in advance of asset base growth as a result of GoGetta yield improvement $ millions FY2013 FY2014 FY2015 FY2016 FY2017 Change • Expenses from ordinary Revenue 114.4 141.3 171.0 221.1 286.0 29.4% activities includes bad debt costs which are higher than Expenses fr
Slide 20: Balance Sheet
• Growth in arrears driven in part by growth in overall asset base, but also • Good growth in lease $ millions FY2013 FY2014 FY2015 FY2016 FY2017 Change receivable book year on year ASSETS • Growth in non-current assets entirely attributable to growth Cash 1.3 1.5 1.6 5.7 7.3 28.1% in deferred tax a
Slide 21: Cash Flow
• Strong growth in operating cashflow in line with revenue and EBITDA growth • $92.7M of additional capital $ millions FY2013 FY2014 FY2015 FY2016 FY2017 Change introduced during the year to fund growth Net cash from operating activities 75.3 89.4 103.3 119.7 152.9 27.7% Payments for plant and equip
Slide 22: Outlook
Maintain key relationships within domestic hospitality sector and continue to deliver above industry growth rates Continue international expansion in Canada with a focus on establishing our presence in the Eastern Provinces Focus on improved financial returns on capital invested in GoGetta: • Improv
Slide 23: Investor Information
TER INFORMATION SILVER CHEF GROUP
Slide 24: Rental Products and Terms
RentTryBuy Initial Offering (RTB) Customer Decision at 12 Months Purchase Continue Renting Upgrade Return Equipment* Easy Own Subsequent Decision Go.Own.Plus Continue RTB Retention (LTR) Customer Decision in Further 12 Months Purchase Return Equipment* Continue Renting RTB Retention LTR Advantage SI
Slide 25: Organisation Structure
Chief Executive Officer Damien Guivarra Executive General Executive General Executive General Group Sales & Chief Head of Group Project Manager Head of Technology Manager Northern Region Manager Southern Region Manager Canada Marketing Manager Financial Officer People and Culture Vinnie D'Alessandro
Slide 26: Management Profiles
Mr. Guivarra was appointed to the role of Chief Executive Officer in November Doug is a Chartered Accountant and commenced as Silver Chef's Chief Financial 2016. Over the last ten years Mr Guivarra has played an integral role in the growth of Officer in August 2014. He brings to the company 15 years
Slide 27: Management Profiles
Robert has more than 25 years of experience in the financial Kristian joined Silver Chef in 2012 as part of a new business Mike Connell joined the company in January 2016. Mike has sector, including executive positions with RemServ, St George development role in the hospitality sector in NSW. With a
Slide 28: Management Profiles
Simone is responsible for Project Management and Project Execution across the Vinnie D'Alessandro joined Silver Chef in June 2015 as IT Manager. He has 18 years group. Simone joined Silver Chef in 2007, and has extensive experience across all of technology experience across various operational, arch
Slide 29: Share Registry and Company Details
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 653 459 Website: boardroo