Slide 1: Half Year Results Presentation December 2013
For personal use only Half Year Results Presentation December 2013 Creating long-term shareholder value through the efficient operation and growth of our core businesses
Slide 2: Organisation Chart (Core Businesses)
Organisation Chart (Core Businesses) For personal use only SCHAFFER CORPORATION LIMITED Building Materials Division Property Division Automotive Leather Division Delta Syndicated Investment Property Howe (83% owned) • Precast concrete – Herne Hill, WA • Finishing – Thomastown, Victoria • Tannery – R
Slide 3: Overview
Overview For personal use only EBIT has increased by 61% but statutory profit is down 7% after $3.7 million goodwill write-off • The driver of the EBIT increase is Automotive Leather with increased volumes and favourable FX impacts. • Building Material’s profit is down in comparison to the buoyant f
Slide 4: Financial Performance
Financial Performance For personal use only EBIT increased 61% but Statutory Profits decreased by 7% due to a $3.7m non-tax deductible goodwill write-off Half-Year Dec-2013 1 Dec-2012 2 % Change Revenue ($m) $86.2 $72.3 19% EBITDA ($m) 3 $18.0 $12.0 51% EBIT ($m) 4 $15.3 $9.5 61% NPAT ($m) 5 after $
Slide 5: Cash Flow
Cash Flow Stronger operating cash flow has enabled significant investment by Gosh Capital For personal use only without a significant increase in Group Net Debt Half-Year Ending ($m) Dec-2013 Dec-2012 EBITDA 18.0 12.0 Less profit on disposal of assets and non-cash items (0.8) (3.5) Net interest paid
Slide 6: Group Net Debt
Group Net Debt Building Materials and Corporate (100% recourse to SFC) remains cash positive For personal use only Building Syndicated Total Total Materials & Investment Automotive Gosh 31 Dec 31 Dec All amounts in $m’s Corporate Properties Leather Capital 2013 2012 Type of Debt: Bank debt - recours
Slide 7: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.09/share (pcp $6.46/share) Building Syndicated Materials & Investment Automotive Gosh Total Corporate Properties Leather1 Capital1 31 Dec 2013 Net assets (Book) ($m) 36.7 (4.0) 29.2 6.1 68.0 Net assets (Market Value) ($m) 42.0
Slide 8: Automotive Leather
For personal use only 8 Automotive Leather
Slide 9: Automotive Leather Results
Automotive Leather Results For personal use only $m’s Dec-2013 Dec-2012 % Change Revenue 53.0 35.1 51% Segment EBIT 11.1 1.7 537% The previous corresponding period was a low base due to an expected changeover to new vehicle models, political disputes between Japan and China, and the AUD being part
Slide 10: Automotive Leather Outlook H2 FY14
Automotive Leather Outlook H2 FY14 For personal use only Volumes for H2 FY14 are expected to be similar to H1 as supplies to the new model programs continue. If current FX rates prevail, our price per square metre will be on average higher than H1. Margins are expected to be lower in H2 than H
Slide 11: Schaffer Building Materials / Building Products
Schaffer Building Materials For personal use only Building Products 11
Slide 12: Building Materials Results
Building Materials Results For personal use only $m’s Dec-2013 Dec-2012 % Change Revenue 29.7 33.7 (12%) EBIT 2.5 4.7 (46%) Margin 9% 14% A decrease in the resource sector related civil infrastructure developments in Western Australia have decreased revenue and margin. The Building Products (pav
Slide 13: Building Materials Outlook H2 FY14
Building Materials Outlook H2 FY14 For personal use only The order banks are currently at similar levels as they were at the start of FY13. However we are cautious with our outlook due to the expected timing of order delivery, the current business conditions resulting from a decline in the resou
Slide 14: Investment Property
Investment Property For personal use only IBM Building, Hay St, West Perth, WA 616 St Kilda Rd, Melbourne, VIC Parks Centre, Bunbury, WA Hometown Cannington, WA 14
Slide 15: Property Portfolio
Property Portfolio For personal use only % SFC Property Interest Syndicated Investment Properties Syndicated Investments IBM Building, 1060 Hay St, West Perth, WA 22% Estimated $27.7 million of unrealised property Océ House, 616 St Kilda Rd, Melbourne, VIC 20% value before tax above book value. Home
Slide 16: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only $m’s Dec-2013 Dec-2012 % Change Revenue 3.3 3.2 5% Segment EBIT 1.4 1.3 5% Margin 43% 43% Tenancies have remained at almost 100% for the majority of the period. For H2 FY14 an increase in vacancies is expected for our offic
Slide 17: Gosh Capital
Gosh Capital For personal use only 39 Dixon Road, Rockingham, WA Bulky goods retail with a further 1000 sqm being developed for lease to Petbarn 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential Site can accommodate approx. 175 units Example image of proposed
Slide 18: Gosh Capital Portfolio
Gosh Capital Portfolio For personal use only Cost Property ($m) Owned Property 10 Bennett Ave, North Coogee, WA (Land holding) $1.7 39 Dixon Rd, Rockingham, WA (Bulky Goods Retail) $8.2 Property Unit Trusts Space 207 and Harbour Park, NSW (Offices) $1.0 265 Parramatta Rd, NSW (Bulky Goods Retail) $0
Slide 19: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only $m’s Dec-2013 Dec-2012 % Change Revenue 0.2 0.3 (46%) Segment EBIT excluding insurance proceeds 0.1 0.2 (65%) Margin 55% 83% Insurance proceeds less associated costs 1.21 3.41 Segment EBIT 1.3 3.7 (66%) 1. Relates to fire damage claim for 10 Benne
Slide 20: Outlook – H2 FY14 summary
Outlook – H2 FY14 summary For personal use only • For H2 FY14 compared to prior corresponding period we estimate: • Significant increase in Automotive Leather results compared to prior corresponding period due to volumes and FX. • Similar subdued result for Building Materials compared to prior corre
Slide 21: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only Dec Dec Dec Dec EBITDA Reconciliation ($000’s) 2013 2012 Underlying Profit Reconciliation ($000’s) 2013 2012 Profit before income tax 9,900 7,846 NPAT* 4,909 5,287 Impairment of goodwill 3,696 - Impairment of goodwill 3,696 - Finance income (132)
Slide 22: 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