Schaffer Corporation Limited · ASX:SFC
Schaffer — Shareholder Meeting (November 2021)
26 slides from Schaffer's shareholder meeting presentation, Nov 17, 2021
Slide 1: Schaffer Corporation Limited Annual General Meeting Chairman's Address
17 November 2021 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS Please find attached the Chairman’s Address to the Annual General Meeting of SFC. The Chairman has author
Slide 2: 2021 Annual General Meeting
2021 ANNUAL GENERAL MEETING 17 November 2021 Creating long-term shareholder value through the efficient operation of our businesses and growth in our investments Good Morning, Ladies and Gentlemen. My name is John Schaffer. I am the Chairman and Managing Director of Schaffer Corporation. It is my pl
Slide 3: Schaffer Corporation's Annual Report
Schaffer Corporation’s Annual Report, including reports of the Directors and the Auditors, for the year ended 30 June 2021 have been in members’ hands for the statutory period. Following my Chairman’s address, I will invite questions and comments from members. 2
Slide 4: Results for the 2021 financial year
I am pleased to share the results for the 2021 financial year with you, my fellow shareholders. The profit results are a record for the company. They were achieved despite the impacts of the Covid-19 pandemic on the global economy and our businesses. For the Automotive Leather division, the first tw
Slide 5: Group achieved record profit for 2021
As mentioned, the Group achieved record profit for 2021. In addition: • Revenues were up 26% to $196 million, primarily from Automotive Leather’s strong recovery; • Net profit after tax (NPAT1) was up 65% to $39 million; • NPAT included $11 million after tax of unrealised non-cash net gains from the
Slide 6: Total Shareholder Return
Total Shareholder Return (TSR*) measures the combined returns to shareholders from share price movements, dividends, and dividend imputation credits. Over the last five years, Schaffer Corporation’s average annual TSR is 47% per year. Taking a long-term perspective, if an investor had invested $100,
Slide 7: Cash generation for the financial year was remarkable
Cash generation for the financial year was remarkable. It benefitted from the Automotive Leather division’s strong operational performance and the reduction in the Covid-related excess inventory that was held at 30 June 2020. For the financial year, our businesses generated $60 million of operating
Slide 8: Automotive Leather
I now handover to Ralph Leib. Ralph is both Schaffer Corporation’s and Automotive Leather’s Chief Financial Officer and will review the financial performance of the Automotive Leather division. 7
Slide 9: Automotive Leather
Thank you, Chairman, and good morning, ladies and gentlemen. Automotive Leather The Automotive Leather division delivered a strong financial year. Revenues increased by 27% and profits increased by 38%. I note that the previous financial year was significantly impacted by Covid-19. The division bene
Slide 10: Automotive Leather Division Update for Financial Year 2022
Automotive Leather Division Update for Financial Year 2022 – Chips! Chips! & Ships! As noted in our results released in August 2021, the global automotive industry is being negatively impacted by the semiconductor chip shortage and other supply chain issues. While demand for new vehicles remains str
Slide 11: Automotive Leather Financial Year 22 first-half update
Automotive Leather Financial Year 22 first-half update In addition to the chip shortages, we are experiencing inflationary pressure on our costs, including hide costs, chemicals, and freight costs. We are also seeing supply chain disruptions and elongation. To mitigate supply chain risks, we are cur
Slide 12: Thank you Ralph
Thanks Ralph. Good morning to all. Unfortunately, due to Covid travel restrictions for the second year, I am unable to attend the AGM in person. On a similar note, due to the travel constraints, it has been almost two years since any of the Australian management team has visited any of our internati
Slide 13: Premium OEM Market
As outlined in previous years, our focus remains on high specification products of the premium OEM market with increasingly complex value-added features, such as perforation designs, lamination, and logo embossing. The new Range Rover has recently been launched to which the Automotive Leather Divisi
Slide 14: Group Investments
Thank you Dan. Group Investments Group Investments aims to maximise shareholder value over the medium and long-term by: • Continuing to grow our investment portfolio; • Accessing unique investment opportunities for shareholders; • Investing in businesses and people with proven track records; and • R
Slide 15: Underlying valuation underpinned by tangible assets
Schaffer Corporation’s underlying valuation continues to be underpinned by tangible assets. As at 30 June 2021, the Group’s investment portfolio (including our share of subsidiaries) had an estimated pre-tax net equity market value of $192 million, compared to $163 million for the prior year. That i
Slide 16: Jandakot Road Property
Jandakot Road Property A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. § Approximate developable lot area of 34ha after allowing for internal and external roads, drainage, buffers and the Bush Forever area. § Allowable uses are Warehouses, Showroo
Slide 17: Delta
Delta Delta produces precast and prestressed concrete products, predominantly for the Western Australian market. Delta returned to profit for the first half and was close to break-even for the second half. A large infrastructure project, Evolve Bayswater Station, was due to commence in the second ha
Slide 18: Complex Production Capabilities
I thought it would be useful to share some of the complex production capabilities Delta is able to deliver. Delta focuses on working with designers and major contractors to develop innovative, cost- effective precast solutions. It can take two-to-three years of preliminary budgets, conceptual design
Slide 19: Conclusion
Conclusion In conclusion, we live in interesting and volatile times. The first half of the current year has been impacted by chip shortages. Nonetheless, recent announcements from our OEMs indicate the position should incrementally improve over the next 12 months – we are starting to see the beginni
Slide 20: Risks and Dividends
These include: • The ongoing economic impacts of Covid-19 • Further waves of the pandemic, especially during the winter months in Europe and China, which could further disrupt raw material and finished product supply chains • The semiconductor chip shortages • Labour shortages and higher wage costs,
Slide 21: Questions or Comments
I now invite questions or comments from members regarding the accounts and reports, and the management of the company. Members are also invited to ask our auditors questions relevant to the conduct of the audit and the preparation and content of the auditor’s report. 20
Slide 22: Resolution 1
I now turn to the first item of ordinary business in the Notice of Meeting “To receive and consider the annual financial statements and reports of the directors and the auditors for the period ended 30 June 2021” The Corporations Act requires that the Annual Financial Report, including the Directors
Slide 23: Resolution 2
I would now like to move to Resolution 1, Re-election of Director “That Mrs. Danielle Blain AM, who retires in accordance with the Company’s constitution and, being eligible for re-election, be re-elected as a Director” A total of 8,854,992 proxies were received, which represents 64.5% of the Compan
Slide 24: Resolution 3
I would now like to move to Resolution 2, Re-election of Director “That Mr Anton Mayer, who retires in accordance with the Company’s constitution and, being eligible for re-election, be re-elected as a Director” Proxies submitted for Resolution 2 are shown on the screen. Proxies at the Chairman’s di
Slide 25: Remuneration Report
I would now like to move to Resolution 3, Remuneration Report “That the Remuneration Report for the period ended 30 June 2021 be adopted” Full details of the Company’s approach to remuneration for Directors and Senior Executives are included in our Remuneration Report contained within this year’s An
Slide 26: Meeting Closed
As there is no further business to be transacted and the formal proceedings have been completed, I declare the meeting closed. 25