Silver Chef : Appendix 4E and Annual Report 2017

Appendix 4E

Silver Chef Limited Preliminary Final Report

FINANCIAL YEAR ENDED 30 JUNE 2017

1. Details of the reporting period and the previous corresponding period

   Current period: 1 July 2016 to 30 June 2017

   Previous corresponding period: 1 July 2015 to 30 June 2016

2. Results for announcement to the market Year ended 30 June 2017 $'000 Year ended 30 June 2016 $'000 Change from previous corresponding period $'000 Change from previous corresponding period %

   2.1 Total revenue 286,025 221,082 64,943 29.4

3. Profit from ordinary activities after tax 20,245 22,356 (2,111) (9.4)

4. Net profit attributable to members 20,492 21,969 (1,477) (6.7)

5. 2.4 Dividends per ordinary shares Amountper security Franked amount per security

   Interim 2017 12.9 cents 100%

   Final 2017 (declared, not yet provided at 30 June 2017) payable on 2 October 2017 25.1 cents 100%

6. Record date for determining entitlements to the final dividend 8 September 2017

7. Brief explanation of revenue, net profit and dividends Refer to the 2017 annual report

1. Statement of comprehensive income

   Refer to the 2017 annual report

2. Statement of financial position

   Refer to the 2017 annual report

3. Statement of cash flows

   Refer to the 2017 annual report

4. Statement of changes in equity

   Refer to the 2017 annual report

5. Details of dividend payments Amount persecurity

   Year ended 30 June 2017

   Total amount paid $'000 Date of payment

   Final 2016 25.0 cents 8,788 16 September 2016

   Interim 2017 12.9 cents 4,649 31 March 2017

6. Dividend or distribution plan details

   The Company's Dividend Reinvestment Plan remains in place.

7. Net tangible assets per security Year ended 30 June 2017 (cents) Year ended 30 June 2016 (cents)

   Ordinary shares 413 359

8. Details of entities over which control has been gained or lost during the period

   There was no control gained or lost over entities during the financial year.

9. Investment in associates and joint venture entities

   Not applicable

   Silver Chef Limited

   Appendix 4E Preliminary Final Report For the 12 months ended 30 June 2017

10. Other significant information

    Refer to the 2017 annual report

11. Foreign entities, applicable accounting standards used

    Refer to the 2017 annual report

12. Commentary on the results for the financial year

    Refer to the 2017 annual report

13. Statement as to whether the report has been audited

    The report is based on accounts which have been audited.

14. Statement if the financial report is not audited

    Not applicable as the financial report has been audited.

15. Statement if the financial report is audited

The financial report has been audited and is not subject to disputes or qualifications.

Appendix 4E Page 2 of 2 Silver Chef Limited Annual Report 2017

Contents Page

Chairman's Report 2

A purpose driven business 5

Directors' report including the remuneration report 8

Index to the financial statements 32

Consolidated statement of profit or loss and other comprehensive

income 33

Consolidated statement of changes in equity 34

Consolidated statement of financial position 35

Consolidated statement of cash flows 36

Notes to the consolidated financial statements 37

Directors' Declaration 66

Independent Auditor's Report to members of Silver Chef Limited 67

Lead Auditor's Independence Declaration 72

ASX Additional Information 73

Company directory 75

Silver Chef Limited

Chairman's report

For the year ended 30 June 2017

During the year ended 30 June 2017, Silver Chef ("the Company") continued to execute its strategy of expanding its flexible rental product offering under both the Silver Chef and GoGetta brands. The Company reported a net profit after tax of $20.2 million, which was down 9.8% on the previous corresponding period. Overall, the Company delivered good growth in its rental asset base, but year on year financial returns were down on the back of poor customer contract performance in the GoGetta business, particularly in the light commercial channel. The Company is focused on improving return on capital and has implemented a number of changes to improve credit quality and average contract life of the GoGetta portfolio.

Under the long established Silver Chef brand focused on the hospitality sector, growth and financial performance from the Australian, New Zealand and Canadian markets was excellent. Under the domestically focused GoGetta brand, similar to other rapidly growing businesses, execution of that strategy came with its challenges during the year. The transport and construction sectors in which GoGetta operates have differing customer and credit dynamics and action has been taken to refine our definition of what constitutes a quality customer in that part of the business. During the year, the Company implemented a variety of business improvement initiatives in GoGetta and the significantly improved economic performance in the second half of the year is an early indicator that the portfolio is of better average quality.

Highlights

• Net profit after tax of $20.2M

• Consistent strong performance from the Hospitality business with the rental asset base* up 34% on 30 June 2016

• Strong growth in the New Zealand and Canadian asset bases

• Improved second half performance from GoGetta as predicted

• GoGetta business continues to be refined with focus on improving return on capital through customer quality measures

• Dividend payout ratio increased to 68.7% of full year earnings

• Implementation of securitisation funding facility on target

  *Asset base consists of rental assets at written down value, lease receivables at amortised cost and capitalised upfront costs of lease origination

  The business model

  The Company has two brands which operate as separate divisions: Hospitality (Silver Chef) which provides funding to businesses in the hospitality sector, and GoGetta, which provides equipment funding for small to medium sized businesses across a range of sectors. Both divisions offer a tried and tested equipment funding solution through the Rent.Try.Buy. and Rent.Grow.Own solutions.

  The success of the Company has been built around a number of factors which provide sustainable competitive advantages:

  • Experience - the Company has been providing its core business equipment funding model for over 30 years

  • Customers - a robust and flexible equipment rental for business critical assets for small businesses who recognise that it is the use of the equipment and not the ownership that produces profit

  • People - we have a strong focus on acquiring and developing high quality staff who are aligned to our core values and purpose which builds long term value for shareholders

  • Risk management - credit and asset management processes are evolving to manage risks associated with customer defaults

  • Asset remarketing - the Company has developed specific know-how around the re-conditioning and remarketing of used assets, particularly in the hospitality sector

  • Partnerships - we continue to strengthen our relationships with the hospitality dealer network by growing sales and marketing support. Our GoGetta finance broker network is expanding as the compelling risk sharing features of our Rent Try Buy formula gains traction with their small business clients.