Slide 1: Full Year Results Presentation June 2016
For personal use only Full Year Results Presentation June 2016 Creating long-term shareholder value through the efficient operation and growth of our core businesses and investments
Slide 2: Organisation Chart (Core Businesses)
Organisation Chart (Core Businesses) For personal use only SCHAFFER CORPORATION LIMITED Automotive Leather Division Property Division Building Materials Division Howe (83% Owned) Syndicated Investment Property Delta • Precast Concrete – Herne Hill, WA • Finishing − Thomastown, Victoria, Australia −
Slide 3: Value Drivers
Value Drivers For personal use only Share Price (June 30): $5.10 No of Shares: 14 million Market Cap: $71.4 million FY16 dividends per share: $0.25 fully franked SFC is a diversified company with four operating divisions Automotive Building Investment Gosh 1 Overheads Group Leather Materials Propert
Slide 4: Financial Performance
Financial Performance For personal use only Full year results have improved on the prior year • 53% increase in revenue for Automotive Leather. • $4.2m of profit after tax from the sale of property. Full-Year Jun-20161 Jun-2015 % change Revenue ($m) 213.6 157.3 36% EBIT ($m) 2 13.9 8.7 60% NPAT ($m)
Slide 5: Cash Flow
Cash Flow Positive operating cash generation and sale of property has reduced Net Debt For personal use only Full-Year Ending ($m) Jun-16 Jun-15 The build up of hide stock for the (current) (pcp) significant increase in Automotive Leather volumes has finished. EBIT 11.2 8.7 • Sale of 616 St Kilda Rd
Slide 6: Group Net Debt
Group Net Debt Net Debt has reduced by $3.8 million during the year For personal use only All amounts in $m’s Automotive Building Syndicate Gosh Total Total Leather Materials & Investment Capital 30 Jun 30 Jun Corporate Properties 2016 2015 Type of Debt: Bank debt – recourse - 2.0 2.3 - 4.3 10.0 Ban
Slide 7: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.68/share (pcp $7.52/share) Property Building Property used Syndicate Automotive Materials & by SFC Investment Gosh Total Total Leather1 Corporate Operations Properties Capital1 Property 30 Jun 2016 Net assets (Book) ($m) 35.1
Slide 8: Automotive Leather
For personal use only 8 Automotive Leather
Slide 9: Automotive Leather Results
Automotive Leather Results For personal use only Full-Year Ending ($m’s) June-2016 June-2015 % Change Revenue 155.1 101.1 53% Segment EBIT 4.8 6.3 (23%) A transformative year with the completion of the new Slovakian finishing and cutting plants. Volumes increased 45% over prior year with the sta
Slide 10: Automotive Leather Key Points
Automotive Leather Key Points For personal use only The new Slovakian finishing plant produced its first hides in Oct 2015 and the new additional Slovakian cutting facilities commenced operations in January 2016. By transferring European customer leather finishing to Slovakia, our stock levels are
Slide 11: Automotive Leather Outlook H1 FY17
Automotive Leather Outlook H1 FY17 For personal use only • Volumes for H1 FY17 are expected to stay at the same level as the second half of FY16. Additional new programs, expected to commence in the second half of FY17, should further increase volumes. • Revenue for the first half will be impacted n
Slide 12: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 12
Slide 13: Building Materials Results
Building Materials Results For personal use only Full-Year Ending ($m’s) Jun-2016 Jun-2015 % change Revenue 51.8 49.1 6% Segment EBIT 2.9 1.4 110% Infrastructure projects in the commercial sectors drove increased sales for engineered product and natural stone sales for Building Products’ (paving a
Slide 14: Building Materials Key Points
Building Materials Key Points For personal use only Building Products The penetration of exclusive Australian sourced natural stone is progressing well in the local government and commercial infrastructure sector. Focus is on branding and customer service in the competitive but depressed WA resi
Slide 15: Building Materials Outlook H1 FY17
Building Materials Outlook H1 FY17 For personal use only Our estimate are conservative because industry conditions make this segment difficult to forecast. The order book for Building Products is very healthy. However, when combined with Delta, overall revenue is expected to be lower. Intense
Slide 16: Property Portfolio (Total Group)
Property Portfolio (Total Group) For personal use only SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value* Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used
Slide 17: Property: Lot 101 & Jandakot Road
Property For personal use only Lot 101, 103 & 104 Jandakot Road A strategic 57 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 6.4 ha Urbanstone manufacturing (Lot 101) • 6.8 ha special use Nursery and Showrooms (Lot 104 & part Lot 103) • 44.1 ha currently zon
Slide 18: Investment Property (Syndicates)
Investment Property (Syndicates) For personal use only IBM Building, Hay St, West Perth, WA Hometown Cannington, WA Parks Centre, Bunbury, WA 18
Slide 19: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only Full-Year Ending ($m’s) Jun-2016 Jun-2015 % change Revenue 5.4 6.0 (10%) EBIT (excluding Property Sales) 2.3 2.4 (5%) Property Sales EBIT 5.7 - - Total Segment EBIT 8.1 2.4 231% Occupancy remained at 95%. On 11 December 201
Slide 20: Gosh Capital
Gosh Capital For personal use only 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommodate approximately 175 units 20
Slide 21: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only Full-Year Ending ($m’s) Jun-2016 Jun-2015 % change Revenue 1.2 1.1 13% Segment EBIT excluding sale of property 0.7 0.6 24% Profit from sale of trust property 0.2 - - Segment EBIT 1.0 0.6 66% Profits are steadily increasing as a result of the rei
Slide 22: Group Outlook – H1 FY17 Summary
Group Outlook – H1 FY17 Summary For personal use only For H1 FY17 compared to prior corresponding period we estimate: • Improved profit for Automotive Leather (based on current exchange rates) • A decrease in profit for Building Materials. • A decrease in profit for Investment Property. • An increas
Slide 23: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only EBIT Reconciliation ($000’s) Full-Year Ending Schaffer Corporation Limited results are reported under Jun-16 Jun-15 International Financial Reporting Standards (IFRS) as issued Profit before income tax 7,542 5,213 by the International Accounting S
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Schaffer Corporation Limited ACN 008 675 689 for information purposes only. The presentation may contain forward looking statements or statements of opinion. No representation or warranty is made regarding the accuracy, complete