Slide 1: ASX Market Announcements cover letter
22 February 2023 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - 1H23 RESULTS Please find attached SFC’s Investor Presentation for the first half of the 2023 financial year. The Board has
Slide 2: FY23 Half-Year Results Presentation
FY23 Half-Year Results Presentation DECEMBER 2022 Creating long-term shareholder value through the efficient operation of our businesses and growth in our investments
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Schaffer Corporation Limited ACN 008 675 689 (“The Company”). This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Schaffer C
Slide 4: Organisation Chart
Organisation Chart MANUFACTURING GROUP INVESTMENTS JANDAKOT – SOUTH CONNECT AUTOMOTIVE LEATHER (83% OWNED) SFC (100%) AND GOSH CAPITAL (83%) JANDAKOT - ▪ Finishing ▪ Company Owned Property ▪ 100% Owned - Slovakia - Victoria, Australia ▪ Syndicated Investment Property ▪ A large strategic asset locate
Slide 5: Group Consolidated Financial Performance
Group Consolidated Financial Performance 1H23 Statutory NPAT was $5.1m1 (1H222: $8.0m) Half-Year ending December ($m) 1H23 1H222 $ change 1 Automotive Leather NPAT1 of $4.8m, down $2.7m compared to Revenue $83.5 $73.2 $10.3 1H22 reflecting a challenging half for the division NPAT1 from: 2 Delta retu
Slide 6: Fully Franked Dividends
Fully Franked Dividends SFC is a consistent dividend payer ▪ The Board has declared an interim fully franked dividend of $0.45 per share, for shareholders on record on 10 March 2023, payable on 17 March 2023 90 90 80 70 45 45 35 45 40 25 25 25 26 30 23 20 21 45 45 45 45 13 13 13 14 12 10 11 30 15 10
Slide 7: Cash Generated
Cash Generated Half-Year Ending ($m) Dec 2022 Jun 2022 Dec 20211 1 Increase in Automotive Leather Working Capital NPAT1 5.1 18.2 8.0 ▪ Excess inventory associated with slow launch of major Net unrealised pre-tax losses/(gains) – group renewed programme. We expect vast majority of excess 1.8 (4.8) 7.
Slide 8: Group Net Debt Increase ($m)
Group Net Debt Increase ($m) Net debt increased due to: ▪ $7.4m dividends paid -$11.0m o $6.1m SFC shareholders, $1.3m dividends paid to $17.5m minorities ▪ $11.4m new Group Investments ▪ $8.2m Capex and Property Development $3.8m o $4.4m for Jandakot Property $4.4m $41.4m o $2.8m for Automotive Lea
Slide 9: Group Net Debt Overview ($m)
Group Net Debt Overview ($m) MANUFACTURING GROUP INVESTMENTS Syndicated Automotive SFC Gosh Total Total All amounts in $m Jandakot Investment Leather Investments Capital Dec 22 Jun 22 Properties Type of Debt: Bank and other debt (26.5) (1.4) (8.2)3 (22.3) (7.8) (66.2) (40.0) Equipment finance (7.9)
Slide 10: Automotive Leather
Automotive Leather A Challenging First Half Half-Year ending December ($m) 1H23 1H22 Revenue of $62.8m was 11.9% higher than 1H22 on the back of higher comparative Revenue $62.8 $56.1 sales volumes. Segment NPAT1 $4.8 $7.5 1H23 continued to be impacted by the global semiconductor chip shortages and
Slide 11: Automotive Leather continued
Automotive Leather continued Challenges (continued) ▪ The slow launch of a major renewed program continued to negatively impact sales volumes during 1H23. ▪ The slow launch also resulted in higher-than-normal hide inventory levels and negatively impacted cashflow generation. ▪ Inflationary pressures
Slide 12: Automotive Leather continued
Automotive Leather continued Outlook We once again remind shareholders that the prospects of the Automotive Leather division remain strong, with future growth in Europe supported by renewed major programs, and previously won programs with Mercedes and Audi. Our OEMs continue to report strong demand
Slide 13: Group Investments
Group Investments Pre-Tax Net Equity Value1 (including syndicated Pre-Tax Net Equity Value #039;million property debt) of $185.2 million or $13.59/share Over the past five and a half years: $191.7 ▪ Pre-Tax Net Equity Value1 has increased by $89.6 million $187.7 $185.2 $20.6 $23.4 $19.1 ▪ We have paid
Slide 14: Group Investments
Group Investments NPAT1 of $1.8m (1H22: $2.3m) Half-Year ending December ($m) 1H23 1H223 ▪ +$2.0m NPAT for ongoing rent and distribution income (1H22: $1.9m) Revenue $6.6 $8.7 Segment NPAT1 ($m) $1.8 $2.3 o improved property rent and distributions offset by higher interest charges ▪ +$0.6m NPAT from
Slide 15: Group Investments – Property
Group Investments – Property Fugro Building West Perth, WA Hometown Cannington, WA Home Space, Tamworth, NSW 39 Dixon Rd Rockingham, WA Parks Centre Bunbury, WA Half-Year Results Presentation DECEMBER 2022 14
Slide 16: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Aerial View – February 2022 Half-Year Results Presentation DECEMBER 2022 15
Slide 17: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. South Connect – Jandakot Logistics Estate is well located to benefit from the increased demand for logistic and “last-mile” warehousing driven by the rapid
Slide 18: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Artist’s Impression; Future Lot 811 Jandakot Road ▪ Future Lot 811 is now DA approved and ready for development. ▪ Approved for 5 warehouse tenancies with aggregate lettable area of 36,000 square metres. Half-Year Results Presentation DECEMBER 2022 17
Slide 19: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Artist’s Impression; South Connect Logistics Estate, Jandakot Half-Year Results Presentation DECEMBER 2022 18
Slide 20: Delta
Delta Half-Year ending December ($m) 1H23 1H22 Summary Revenue $14.0 $8.4 ▪ Delta returned to profitability with NPAT of $0.3m (1HFY22: -$0.3m loss) Segment NPAT $0.3 ($0.3) notwithstanding challenges including: o Design and engineering complexity on a large project which continued to impact margins
Slide 21: Group Outlook – 2H23
Group Outlook – 2H23 Outlook Risk Factors ▪ The current environment remains volatile and challenging, with many ▪ Currency volatility potential risks that could impact our outlook. ▪ Broader economic uncertainties, including an economic slowdown ▪ Automotive Leather o Prospects of the Automotive Lea
Slide 22: Non-IFRS Financial Information
Non-IFRS Financial Information As at Schaffer Corporation Limited results are reported under Reconciliation of Net Debt ($000’s) International Financial Reporting Standards (IFRS) as issued by the Dec 2022 Jun 2022 International Accounting Standards Board. The Company Interest-bearing loans and borr
Slide 23: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value1,2,3 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1 FY23 H1 FY23 Pre-Tax Net Equity Value1,2 ($m) ($m) ($m) ($m) ($m) ($m) ($m) Per Share % of Portfolio Property: Used by SFC Operations $19.6 $11.4 $11.4 $9.7 $9.7 $9.7 $9.7 $0.71 5% Property: Rental I
Slide 24: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current Lettable Area SFC Share of Market SFC Share of Debt Notional Tax on Net Equity Value Address Description Ownership Structure Land Size (sqm) SFC Ownership % (sqm) Value ($m) ($m) Capital Gain ($m) After Tax ($m) Property used by SFC Operat
Slide 25: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio SFC Share of Notional Tax on Current Lettable SFC Ownership SFC Share of Net Equity Value Address Description Ownership Structure Land Size (sqm) Market Value Capital Gain Area (sqm) % Debt ($m) ($m) ($m) ($m) Development Sites Lot 706 Jandakot Ro