Slide 1: December 2008 Half Year Results Presentation
Schaffer Corporation For personal use only December 2008 Half Year Results Presentation
Slide 2: Devaluation of the AUD short term impact on half year profitability
Devaluation of the AUD had a short term negative impact on Dec half year profitability, but a lower AUD improves margins in the For personal use only Automotive Leather Division % Half Year ($m’s) to Dec-07 to Dec-08 change Revenue 91.1 85.5 -6% EBITDA 13.8 10.4 -25% EBIT 11.2 7.6 -32% Net profit af
Slide 3: Cash flow
Cash flow For personal use only Half Year Ending (A$m) Dec-07 Dec-08 EBITDA 13.8 10.4 Net interest paid (2.6) (2.8) Tax paid (3.3) (1.1) Howe change in trade working capital (’08 - mainly pmts for raw materials) 9.6 (20.1) Other changes in working capital (1.3) 1.0 Unrealized loss on foreign currenc
Slide 4: Group Debt Profile
Group Debt Profile For personal use only Build. Mat. JV Invest. Howe Total at + Corporate Properties Leather 31/12/08 Type of Debt :- Bank Debt - recourse 21.3 3.1 - 24.4 Bank Debt - non-recourse - 23.5 - 23.5 Govt. Loans - non-recourse - - 36.6 36.6 Equipment Finance 1.9 - - 1.9 Other Debt - - - -
Slide 5: Debt Utilization at Dec. 2008
Debt Utilization at 31 Dec. 2008 For personal use only 120.0 100.0 Debt Facility - $M's 80.0 60.0 40.0 20.0 - Bldg Materials & JV Inv. Properties Howe Leather Total Group Corp. Unutilized 10.1 1.5 15.3 26.9 Utilized 25.4 26.6 36.6 88.6 Utilized Unutilized 5
Slide 6: Interest Cover & Debt to NTA Ratio
Interest Cover & Debt to NTA Ratio For personal use only Build. Mat. + JV Invest. Howe Total Corporate Properties Leather EBIT (millions) $ 5.0 $ 1.5 $ 1.1 $ 7.6 EBITDA (millions) $ 6.5 $ 1.7 $ 2.2 $ 10.4 Interest Cover 6.5 1.7 1.8 3.3 Gross Debt (millions) $ 23.2 $ 26.6 $ 36.6 $ 86.4 NTA (property
Slide 7: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products
Slide 8: Building Materials Results
Building Materials Results For personal use only Building Materials $M’s Dec-07 Dec-08 % change Revenue 33.0 37.9 +15% Segment EBIT 5.1 5.7 +11% Margin 15.6% 15.0% • Strong earnings growth boosted by record activity levels for Delta Corporation. • Trading conditions for paving and walling products r
Slide 9: Automotive Leather
For personal use only 9 Automotive Leather
Slide 10: Exchange Rates: AUD vs USD & EUR
For personal use only 10 AUD/USD 0.600 0.650 0.700 0.750 0.800 0.850 0.900 0.950 1.000 07/01/2008 07/07/2008 07/13/2008 07/19/2008 07/25/2008 07/31/2008 08/06/2008 08/12/2008 08/18/2008 08/24/2008 08/30/2008 09/05/2008 July 08 – January 09 09/11/2008 09/17/2008 09/23/2008 09/29/2008 10/05/2008 10/11
Slide 11: Automotive Leather Results
Automotive Leather Results For personal use only $M’s Dec-07 Dec-08 % change Revenue 54.3 44.2 -19% Segment EBIT 3.8 1.1 -71% EBIT exc. FX 3.0 8.2 +273% gains/losses Margin 7.1% 2.6% Margin exc. FX 5.5% 18.6% gains/losses • Pre-tax FX losses of $7.1m during H1 had a negative impact on earnings. ($3.
Slide 12: Property
Property For personal use only 616 St Kilda Rd, Melbourne IBM Building, Hay St, West Perth 89 St Georges Tce, Perth 12
Slide 13: Property
Property For personal use only $M’s Dec-07 Dec-08 % change Revenue 3.5 3.1 -11% Net rental income 1.1 1.5 +36% Profit on property sales 2.0 - n/a Segment EBIT 3.1 1.5 -50% • Strong growth in net rental income due to rent increases. • Prior period earnings positively impacted by property sales (Melbo
Slide 14: Outlook – H2 FY09
Outlook – H2 FY09 For personal use only • Building Materials – Trading conditions for Building Products (paving & walling products) are expected to remain difficult, and production levels at Delta are expected to be lower due to the completion of some major contracts. Consequently earnings for the B
Slide 15: Outlook – H2 FY09 cont.
Outlook – H2 FY09 cont. For personal use only • General – Management will continue to remain focused on managing operating expenses with a view to maintaining an adequate return to shareholders, minimizing working capital requirements, and ensuring an efficient and safe working environment for all e
Slide 16: Outlook - Dividends
Outlook - Dividends For personal use only • The Board had declared an unchanged interim dividend of 25c per share fully franked, and payable in March 2009. • The final dividend for FY09 will not be decided until the full year financial results are available, and will be paid based upon the cash posi