Silver Chef : Appendix 4E and Annual Report

Appendix 4E

Silver Chef Limited Preliminary Final Report

FINANCIAL YEAR ENDED 30 JUNE 2016

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

   Current period: 1 July 2015 to 30 June 2016

   Previous corresponding period: 1 July 2014 to 30 June 2015

2. Results for announcement to the market Year ended 30 June 2016 $'000 Year ended 30 June 2015 $'000 Change from previous corresponding period $'000 Change from previous corresponding period %

   2.1 Total revenue 221,082 171,015 50,067 29%

3. Profit from ordinary activities after tax 22,356 15,531 6,825 44%

4. Net profit attributable to members 21,969 15,145 6,824 45%

2.4 Dividends per ordinary shares Amountper security Franked amount per security

Interim 2016 17.0 cents 100%

Final 2016 (declared, not yet provided at 30 June 2016) payable on 16 September 2016 25.0 cents 100%

1. Record date for determining entitlements to the final dividend 5 September 2016

2. Brief explanation of revenue, net profit and dividends Refer to the 2016 annual report

1. Statement of comprehensive income

   Refer to the 2016 annual report

2. Statement of financial position

   Refer to the 2016 annual report

3. Statement of cash flows

   Refer to the 2016 annual report

4. Statement of changes in equity

   Refer to the 2016 annual report

5. Details of dividend payments Amount persecurity

   Year ended 30 June 2016

   Total amount paid $'000 Date of payment

   Final 2015 20.0 cents 6,188 17 September 2015

   Interim 2016 17.0 cents 5,378 22 April 2016

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 2016 (cents) Year ended 30 June 2015 (cents)

   Ordinary shares 359 266

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 2016

10. Other significant information

    Refer to the 2016 annual report

11. Foreign entities, applicable accounting standards used

    Refer to the 2016 annual report

12. Commentary on the results for the financial year

    Refer to the 2016 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 2016

    Contents Page

    Executive Chairman's Report 2

    Corporate and social responsibility statement 6

    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 71

    Independent Auditor's Report to members of Silver Chef Limited 72

    Lead Auditor's Independence Declaration 74

    ASX Additional Information 75

    Company directory 77

    Silver Chef Limited

    Executive Chairman's report

    For the year ended 30 June 2016

    In March 2016, Silver Chef celebrated its thirtieth anniversary and it is with great pride that I recognise the significant achievements that the team has accomplished. We have funded over 45,000 customers, have grown our asset base to

    $539.2 million, now operate in three countries and employ over four hundred people. Importantly since our listing on the stock exchange in 2005, we have delivered outstanding total shareholder returns. It has been a challenging but rewarding journey so far and I believe based on our business model, our value system and our people we can continue to achieve great things.

    The Company reported a net profit after tax of $22.4 million for financial year ending 30 June 2016. As previously noted, the result includes a one-off after tax break cost of $1.0 million arising from early redemption of $30 million of loan notes on 14 September 2015. As a result, after adjusting for this the net profit after tax for the year is $23.4 million. The effect of the first year of deferring upfront origination costs is set out in section 6 of the Directors' Report.

    Silver Chef has again delivered a record level of period on period growth in its rental asset base and in earnings per share. The Company has continued its trend of strong returns, delivering 18% compound annual earnings per share growth since listing in 2005. Growth in the GoGetta business has exceeded our expectations and reflects the success we have had in developing deep relationships with equipment finance brokers in both the transport and construction channels. Importantly, the reliable and sustainable performance in the Australian hospitality sector remains the engine room of the business and we again delivered growth well above general industry trend. Our New Zealand and Canadian businesses delivered on aggressive origination targets for the year and are growing in line with plan. Our outlook for both the Silver Chef and GoGetta brands remains positive.

    Highlights

    • Revenue up 29% to $221.1 million

    • Rental assets (at cost) and lease receivables up 50% to $539.2 million

    • Profit (after tax) up 45% to $22.4 million

    • 18% compound annual growth in underlying earnings per share since listing

    • Total contract originations up 66% to $303.0 million

    • GoGetta asset base* up 86% on 30 June 2015, with record originations of $160.1 million for the full year

    • Growth in hospitality asset base* higher than expectations up 30% on 30 June 2015

    • Canadian business growing strongly in line with expectations

      *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 clear competitive advantages:

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

    • Customers - a robust rental based equipment funding model for business critical assets that is well suited to the needs of small business 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 value for shareholders

    • Risk management - credit and asset management processes effectively manage risks associated with customer defaults