Slide 1: Half Year Results Presentation: Dec-07
For personal use only Schaffer Corporation Half Year Results Presentation: Dec-07
Slide 2: SFC Performance Highlights (6 months to 31-Dec-07)
SFC Performance Highlights (6 months to 31-Dec-07) For personal use only Operations Acquisitions • Group Revenue $91.1m (+23%) • Building Materials: • EBIT 11.2m (+15%) – Archistone (Aug-07): $7.7m • Headline NPAT $5.8m (+11%) – 3 UrbanStone Central stores (Dec–Feb): $7.0m • Unrealised gain on group
Slide 3: Revenue growth improves long-term business fundamentals
Revenue growth improves long-term long business fundamentals For personal use only % Half Year Ending 31 Dec (A$m) to Dec-06 to Dec-07 change Revenue 73.9 91.1 + 23% EBITDA 12.2 13.8 + 12% EBIT (net interest basis) 9.8 11.2 + 15% Net Profit (headline) 5.2 5.8 + 11% EPS 0.37 0.41 + 11% ROCE 14% 17% C
Slide 4: Performance is not dependent on one industry sector
Performance is not dependent on one industry sector For personal use only 10.6 9.7 Other Investments Investment Property Automotive Leather Building Materials 4
Slide 5: Dec-07 Debt Position
Dec-07 Debt Position For personal use only Non- $M Recourse Total Recourse Building Materials 10.0 0.0 10.0 Leather 0 38.7* 38.7 Property Freehold 6.2 0.0 6.2 Property JV’s 2.1 19.7 21.9 Total Debt 18.3 58.4 76.7 Cash Reserves 19.9 Net Debt 56.8 • 31-Dec-07 undrawn debt facilities: $20m * Note: $38.
Slide 6: Actual gearing is ~half of what it appears
Actual gearing is ~half of what it appears For personal use only • Group gearing (Net Debt /Equity) per balance sheet @ 101%. - properties are recorded per AIFRS at depreciated cost; not market value. • Substituting Market Value for Book Value reduces Group gearing to 54%. (Property Book NTA = $0.67
Slide 7: Cash flow summary
Cash flow summary For personal use only Half-Year Ending 31 Dec (A$m) Dec-06 Dec-07 EBITDA 12.2 13.8 Net interest paid (2.0) (2.6) Tax paid (2.7) (3.3) Howe change in trade working capital (2.5) 9.3 Other changes in working capital (0.9) (0.9) Other (0.7) (0.4) Total cash generated 3.4 15.9 Debt red
Slide 8: Profitable niche focus: Building Materials
For personal use only Profitable niche focus Building Materials
Slide 9: Building scale and strengthening the long-term business fundamentals
Building scale and strengthening the long-term long business fundamentals For personal use only Building Materials A$M Dec-06 Dec-07 % change Sales 27.0 33.0 +22% EBIT 3.9 3.7 -6% EBIT Margin 14% 11% • Delta continues to leverage off robust WA economy. • Divisional sales grew in line with the first-
Slide 10: Future growth driven by acquisition of Archistone and Limestone Resources plus UrbanStone Central
Future growth driven by acquisition of Archistone and Limestone Resources plus UrbanStone Central retail store roll-out roll and rebadging For personal use only • Archistone projected revenue: $12m per annum approx • Opportunities for operational improvement in tandem with Limestone Resources • Prov
Slide 11: Leather – Howe Automotive Limited
Business repositioning locks in Howe’s For personal use only competitive future Leather – Howe Automotive Limited
Slide 12: Howe manufacturing and competitive advantages
• High labour intensive cutting operations all based in lower labour-cost labour countries For personal use only (Slovakia, China and Mexico) No cutting in Australia. • Major benefits: (i) lowers Howe’s cost base; (ii) provides local sales and service presence Manufacturing Sales Office Employees Co
Slide 13: Howe sales by region – Growth strongest in Asia
Howe sales by region – Growth strongest in Asia For personal use only 13
Slide 14: The repositioning keeps Howe competitive and well placed to grow revenue base
The repositioning keeps Howe competitive and well placed to grow For personal use only revenue base Leather (Howe Automotive Limited – “Howe”) A$M Dec Dec-06 Dec-07 % change Howe revenue 43.8 54.3 +24% Howe EBIT 4.0 3.8 -4% EBIT Margin 9.2% 7.0% • Howe’s reported $3.8m EBIT was lower than the pcp pr
Slide 15: Solid investments generating shareholder returns: Property
Solid investments generating shareholder For personal use only returns Property
Slide 16: JV partners are industry experts with track record of success
JV partners are industry experts with track record of For personal use only success 16
Slide 17: Property: Investment Property Leasing and Mindarie earnings bolstered by sale of Queens Rd
Property: Investment Property Leasing and For personal use only Mindarie earnings bolstered by sale of Queens Rd Property A$M Dec-06 Dec-07 % change Queens Rd EBIT * n/a 1.3 Leasing + Mindarie EBIT 1.5 2.8 +23% Book value 16.0 18.6 +16% Debt 18.6 21.7 +16% Market value 36.5 53.8 +47% LVR (debt/marke
Slide 18: Outlook - Earnings
Outlook - Earnings For personal use only • Building Materials (Delta, UrbanStone, Limestone Resources, Archistone) – Delta: strong order book for calendar 2008 – Building Products – Revenue growth forecast: • Improving distribution model • UrbanStone Central retail sales • Growth by extending produc
Slide 19: Outlook – Earnings (continued)
Outlook – Earnings (continued) For personal use only • Property – Investment Property leasing to provide stable and secure earnings (+ capital gain) – Mindarie: $3m EBIT and $4m cash to come from balance of project • Group Level Objectives – Grow Building Materials division; – Increase Leather reven
Slide 20: Outlook - Dividends
Outlook - Dividends For personal use only • Final Dividend – SFC will pay a 25¢/share ¢/share fully franked interim ordinary dividend – Ex Dividend Date: 6-Mar-08; 08; Record Date:13-Mar-08; Date:13 Payment Date: 18-Mar-08 • Dividend Outlook – SFC’s objective is to maintain dividends for 2007/08 at