Slide 1: Half Year Results Presentation December 2014
For personal use only Half Year Results Presentation December 2014 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 Building Materials Division Property Division Automotive Leather Division Delta Syndicated Investment Property Howe (83% Owned) • Precast Concrete – Herne Hill, WA • Finishing • Thomastown, Victoria, Australia •
Slide 3: Overview
Overview For personal use only Reduced first half results compared to previous corresponding period (pcp) • FX movements had a negative impact on Automotive Leather results – AUD:USD down, AUD:EUR up. • Building Material’s profit was less compared to pcp due to a reduced market and increasing compet
Slide 4: Financial Performance
Financial Performance For personal use only First half results are lower than pcp, but an improvement on the immediately prior period. • Reduced volumes and negative FX movements for the current period. • The previous year contained over $4 million of abnormal stock profits for Automotive Leather du
Slide 5: Cash Flow
Cash Flow For personal use only Dec-2014 Jun-2014 Dec-2013 Half-Year Ending ($m) (current) (pcp) EBIT 4.5 4.0 15.3 Add depreciation 2.6 2.3 2.7 Less profit on disposal of assets - - (1.4) Net interest paid (1.8) (1.7) (1.7) Larger tax payments relating to FY14 Tax paid (3.6) (1.1) (1.8) Change in Ho
Slide 6: Group Net Debt
Group Net Debt Building Syndicated Automotive Gosh Total Total Total For personal use only All amounts in $m’s Materials & Investment 31 Dec 30 Jun 31 Dec Leather Capital Corporate Properties 2014 2014 2013 Type of Debt: Bank debt - recourse 5.5 3.7 - - 9.2 6.7 5.7 Bank debt - non-recourse - 19.7 2.
Slide 7: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.40/share (pcp $7.09/share) Building Syndicated Automotive Gosh Total Materials & Investment Leather1 Capital1 31 Dec 2014 Corporate Properties Net assets (Book) ($m) 37.0 (8.4) 33.2 6.2 68.0 Net assets (Market Value) ($m) 45.5
Slide 8: Automotive Leather
For personal use only 8 Automotive Leather
Slide 9: Automotive Leather Results
Automotive Leather Results For personal use only Dec-2014 Jun-2014 Dec-2013 Half-Year Ending ($m’s) (current) (pcp) Revenue 47.2 50.4 53.0 Segment EBIT 3.5 4.1 11.1 Margin 8% 8% 21% USD strengthened 3.5% and EUR weakened 2.3% against the USD on a 6 month average basis– both negative impacts for Ho
Slide 10: Automotive Leather Outlook
Automotive Leather Outlook For personal use only Volumes are trending upwards • H2 FY15 volumes are expected to be higher than pcp as supplies to new model programs commence. • The trend should continue in to FY16 when new supply to Mercedes will commence. • At least 50% increase in volumes over t
Slide 11: Automotive Leather Outlook: New Leather Finishing and Cutting Facility
Automotive Leather Outlook For personal use only New Leather Finishing and Cutting Facility • Construction has commenced for a new 15,000 sqm facility in Kosicé, Slovakia, due to be operational towards the end of calendar 2015 to accommodate the increasing volumes from H1 FY16. • Gives Howe an incre
Slide 12: Automotive Leather Currency Impacts
Automotive Leather Currency Impacts For personal use only Foreign exchange exposures are a risk to Automotive Leather’s results and forecasts. An increase (or decrease) of 1¢ for the AUD:EUR reduces (increases) cash and EBIT by approximately $1 million per annum. A 1¢ decrease (or increase) in
Slide 13: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 13
Slide 14: Building Materials Results
Building Materials Results For personal use only Dec-2014 Jun-2014 Dec-2013 Half-Year Ending ($m’s) (current) (pcp) Revenue 25.1 22.2 29.7 EBIT 0.6 (0.8) 2.5 Margin 2.4% (3.6%) 8.6% The decrease in the resource sector related civil infrastructure developments in Western Australia has reduced the m
Slide 15: Building Materials Outlook
Building Materials Outlook For personal use only The order banks are at the similar reasonable levels they were at the start of FY15. Cost reductions will continue to be reviewed and adjusted to maximise profitability within the current industry conditions. We are cautious with our outlook due
Slide 16: 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 16
Slide 17: 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 $30.2 million of unrealised property Océ House, 616 St Kilda Rd, Melbourne, VIC 20% value before tax above book value. Home
Slide 18: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only Dec-2014 Jun-2014 Dec-2013 Half-Year Ending ($m’s) (current) (pcp) Revenue 3.1 2.8 3.3 EBIT (excluding Property Sales) 1.2 1.2 1.4 Margin 41% 43% 43% Property Sales Revenue - 1.6 - Property Sales EBIT - 0.5 - Total Segment EBIT
Slide 19: Gosh Capital
Gosh Capital For personal use only 20 39 Dixon Road, Rockingham, WA Bulky goods retail with 3 tenancies 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommodate approximately 175 units 19
Slide 20: Gosh Capital Portfolio
Gosh Capital Portfolio For personal use only Book Market Property Value1 Value Debt ($m) ($m) ($m) Owned Property 10 Bennett Ave, North Coogee, WA (Land holding) $1.8 $13.6 - 39 Dixon Rd, Rockingham, WA (Bulky Goods Retail) $9.5 $10.1 $6.1 Property Unit Trusts Space 207 and Harbour Park, NSW (Office
Slide 21: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only Dec-2014 Jun-2014 Dec-2013 Half-Year Ending ($m’s) (current) (pcp) Revenue 0.5 0.3 0.2 Segment EBIT excluding insurance proceeds 0.2 0.1 0.1 Margin 41% 40% 55% Insurance proceeds less associated costs - - 1.21 Segment EBIT 0.2 0.1 1.3 1. Relates t
Slide 22: Outlook – H2 FY15 Summary
Outlook – H2 FY15 Summary For personal use only • For H2 FY15, compared to previous corresponding period, we estimate: • an increase in Automotive Leather EBIT due to increasing volumes for new model programs; • an improved EBIT for Building Materials from satisfactory order banks and reduced cost s
Slide 23: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only Half-Year Ending Dec Jun Dec EBIT Reconciliation ($000’s) 2014 2014 2013 Profit before income tax 2,730 2,248 9,900 Impairment of goodwill - - 3,696 Finance income (74) (70) (132) Finance costs 1,883 1,843 1,789 EBIT 4,539 4,021 15,253 Schaffer Co
Slide 24: 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