Slide 1: Full Year Results Presentation June 2017
For personal use only Full Year Results Presentation June 2017 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 − Kosicé– Slovakia − Thomastown, Vic
Slide 3: Financial Performance
Financial Performance Full year statutory profit improved 3% For personal use only • Significant increase in Automotive Leather EBIT due to 16% volume increase and efficiencies. • Offset by reduced profit from the Building Materials division, including a $2.3 million non-cash impairment of assets. F
Slide 4: Cash Flow
Cash Flow Positive operating cash generation from reduced stock levels and increased EBIT For personal use only Full-Year Ending ($m) Jun-17 Jun-16 (current) (pcp) EBIT less non recurring costs 15.2 11.2 Add depreciation 5.3 5.3 Loss/(profit) on disposal of assets 0.2 (5.7) The majority of Automotiv
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $14.4 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 2017 2016 Type of Debt: Bank debt – recourse - 1.5 2.3 - 3.8 4.3 Ban
Slide 6: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.83/share (pcp $7.68/share) Property & Investments Building Property used Syndicate Total Total Automotive Materials & by SFC Investment Gosh Property & 30 Jun Leather1 Corporate Operations Properties Capital1 Investments 2017
Slide 7: Automotive Leather
For personal use only 7 Automotive Leather
Slide 8: Automotive Leather Results
Automotive Leather Results For personal use only Full-Year Ending ($m’s) June-2017 June-2016 % Change Revenue 170.9 155.1 10% EBIT1 13.5 5.0 169% 1 Automotive Leather EBIT includes changes in the provision for the value of Employee Participation Units (EPUs). Revenues continued to grow, increasing
Slide 9: Automotive Leather Outlook H1 FY18
Automotive Leather Outlook H1 FY18 For personal use only • Volumes for the first half of 2018 are anticipated to be significantly higher than the volumes achieved in the first half of the 2017 financial year. • The operational efficiency improvements that benefited profits during the second half of
Slide 10: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 10
Slide 11: Building Materials Results
Building Materials Results For personal use only Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 38.0 51.8 (27%) Segment EBIT 0.0 2.9 Building Products (paving and walling) ◦ Negatively impacted by West Australian economic conditions. ◦ Remained profitable due to commercial projects in
Slide 12: Building Materials Outlook H1 FY18
Building Materials Outlook H1 FY18 For personal use only Delta commenced FY18 with a significantly higher order bank than prior year after successfully winning a major contract. Revenues will increase and a return to profitability is expected, although margins remain under pressure. Building Pro
Slide 13: Property Portfolio (Total Group)
Property Portfolio (Total Group) For personal use only SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value* Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used
Slide 14: Property: Lot 701 & Jandakot Road
Property For personal use only Lot 701, 702 & 703 Jandakot Road A strategic 54.4 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 6.2 ha Urbanstone manufacturing (Lot 701) • 5.8 ha special use Nursery and Showrooms (Lot 702 & part Lot 703) • 42.4ha currently zo
Slide 15: Investment Property (Syndicates)
Investment Property (Syndicates) For personal use only IBM Building, Hay St, West Perth, WA Hometown Cannington, WA Parks Centre, Bunbury, WA 15
Slide 16: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 4.7 5.4 (13%) EBIT (excluding Property Sales) 1.9 2.3 (19%) Property Sales EBIT - 5.71 - Total Segment EBIT 1.9 8.1 1. June 2016 included the sale of SFC’s share in the
Slide 17: Gosh Capital
Gosh Capital For personal use only 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommodate approximately 175 units 17
Slide 18: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 1.4 1.2 13% Segment EBIT excluding sale of property 0.8 0.7 10% Profit from sale of trust property1 0.1 0.2 - Segment EBIT 0.9 1.0 1. Share of trust profits from the sales of Space 207 (De
Slide 19: Group Outlook – H1 FY18 Summary
Group Outlook – H1 FY18 Summary For personal use only For H1 FY18 compared to prior corresponding period we estimate: • A significant improvement in profit for Automotive Leather (based on current exchange rates) • A decrease in profit for Building Materials. • Similar profit for Investment Property
Slide 20: 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-17 Jun-16 International Financial Reporting Standards (IFRS) as issued Profit before income tax 10,057 7,542 by the International Accounting
Slide 21: 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