Slide 1: Full Year Results Presentation June 2013
For personal use only Full Year Results Presentation June 2013 Creating long-term shareholder value through the efficient operation and growth of our core businesses
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 • Precast concrete – Herne Hill, WA • Finishing - Thomastown, Victoria • Tannery - Rosedale, Vic
Slide 3: Highlights
Highlights For personal use only Overall profits are similar to the prior year • Building Materials continued to perform strongly. • Automotive Leather volumes, revenue and profits were lower, as predicted. • $2.3 million of profit after tax related to the ongoing insurance claim for the loss of bui
Slide 4: Financial Performance
Financial Performance For personal use only Revenue decreased but statutory profits were similar to the prior year Full-Year June-2013 June-2012 % Change Revenue ($m) 138.4 152.6 (9%) EBITDA ($m)1 20.0 19.9 1% EBIT ($m)2 14.8 14.9 (1%) NPAT ($m) 7.6 7.5 1% EPS $0.54 $0.53 1% Return on average capita
Slide 5: Financial Performance: Underlying Profit
Financial Performance For personal use only After removal of insurance proceeds, the Underlying Profit has decreased by 20% Full-Year June-2013 June-2012 % Change Underlying Profit1 ($m) 5.1 6.4 (20%) Underlying EPS $0.36 $0.45 (20%) Underlying ROACE 10% 12% 1. Refer to slide 25 for Underlying Profi
Slide 6: Cash Flow
Cash Flow For personal use only Full-Year Ending ($m) June-2013 June-2012 Cash flow from operations EBITDA 20.0 19.9 and insurance proceeds resulted in further reduced Less profit of disposal of assets / non-cash items (4.0) (1.3) net debt Net interest paid (3.2) (3.8) Howe trade working capital
Slide 7: Group Net Debt
Group Net Debt Group Net debt reduction of $4.0 million adds more strength to our Balance Sheet For personal use only Building Total Total Materials & Automotive 30 June 30 June All amounts in $m Corporate Property1 Leather 2013 2012 Type of Debt: Bank debt - recourse 1.0 3.7 - 4.7 8.1 Bank debt - n
Slide 8: Group Net Debt
Group Net Debt Group Net debt halved over the past 4 years For personal use only NET DEBT ($m) 80.0 69.5 70.0 61.1 60.0 25.5 51.5 50.0 21.6 39.4 40.0 25.8 35.4 30.0 26.6 15.9 25.6 18.4 20.0 22.7 22.1 10.0 17.4 17.6 13.9 0.0 3.0 1.4 -0.6 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 -10.0 Building Materials & C
Slide 9: Debt and Assets
Debt and Assets For personal use only Market value of Group Net Tangible Assets $6.58/share (pcp $6.24/share) Building Materials & Automotive Total Corporate Property Leather 30 June 2013 Net assets (Book) ($m) 37.9 3.1 23.5 64.5 Net assets (Market Value) ($m) 43.2 30.9 23.5 97.6 Asset backing (NTA
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 $m June-2013 June-2012 % Change Revenue 58.5 56.4 4% Segment EBIT 5.5 5.0 10% Margin 9.4% 8.8% Civil infrastructure developments and civil works for large resources projects in Western Australia have continued to increased profits for Delta (precast
Slide 12: Building Products Key Points
Building Products For personal use only Key Points Strategy for the Archistone Masonry Division is progressing to plan. We are supplying a wide variety of building types and growing the application of our unique value-added range of products in the Architectural market. Our product offering has
Slide 13: Building Products Major Projects Completed
Building Products For personal use only Major Projects Completed New South Wales: • Juvenile Justice Centre, Wagga Wagga URBANSTONE • Juvenile Justice Centres, St. Marys • Veterans Memorial Park ACT, Anzac memorial Western Australia: • Australian Taxation Office Albury Bayview Terrace, Claremont
Slide 14: Delta Key Points
Delta For personal use only Key Points Continuance of projects from resource and infrastructure sectors during FY2013. Slow-down in resource sector projects will put more focus on civil infrastructure and commercial work during FY2014. Successful completion of the supply of precast, prestresse
Slide 15: Automotive Leather
For personal use only 15 Automotive Leather
Slide 16: Automotive Leather Results
Automotive Leather Results For personal use only $m June-2013 June-2012 % Change Revenue 72.9 89.6 (19%) Segment EBIT 5.0 7.4 (32%) Margin 7% 8% 19% decrease in volumes and revenue was expected due to the completion of programs in FY2012 and FY2013. China volumes were down 44%, Europe down 5%.
Slide 17: Automotive Leather Key Points
Automotive Leather For personal use only Key Points Foreign currency for FY2013 was on average unfavourable compared to FY2012. However, the decline in the value of the AUD late in FY2013 will have a net positive financial effect in FY2014 if rates remain at current levels. New European programs
Slide 18: Automotive Leather Global Footprint
Automotive Leather Global Footprint For personal use only Aachen, Germany Tokyo, Kosice, Japan Slovakia Shanghai, China Melbourne, Australia Offices Factories 18
Slide 19: Property
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 19
Slide 20: Property Results
Property Results For personal use only $m June-2013 June-2012 % Change Revenue 7.1 6.6 8% Segment EBIT (excl. disposals and insurance) 3.5 2.8 23% Net margin 48% 42% Profit on disposals - 0.41 Insurance proceeds less associated costs 4.02 1.32 Segment EBIT 7.5 4.5 64% 1. Relates to sales of syndicat
Slide 21: Property Portfolio
Property Portfolio For personal use only Property Interest Total estimate of $47.4 million of unrealised Syndicated Investment Properties property value before tax. IBM Building, 1060 Hay St, West Perth, WA 22% • $27.8 million from syndicated properties Océ House, 616 St Kilda Rd, Melbourne, VIC 20%
Slide 22: Outlook – H1 FY2014
Outlook – H1 FY2014 For personal use only Automotive Leather • Volumes are expected to increase in the first half of FY2014 as newly started programs gain momentum. The volume increase is expected from European programs. • If foreign currency rates continue at current levels, there will be a positiv
Slide 23: Outlook – H1 FY2014 continued
Outlook – H1 FY2014 continued For personal use only Building Materials • Strong order banks going into FY2014. • Any increased activity in the residential and commercial sector is expected to be offset by a slow down in resource sector projects. • H1 FY2014 revenue and EBIT are forecasted to be lowe
Slide 24: Outlook – H1 FY2014 continued: Overall and Dividends
Outlook – H1 FY2014 continued For personal use only Overall • A significant increase in Revenue and EBIT expected for H1 FY2014 (if current foreign exchange rates prevail). • Automotive Leather gains expected to outweigh the lower projections forecast for Building Materials and Property. Dividends •
Slide 25: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only June June June June EBITDA Reconciliation ($000’s) 2013 2012 Underlying Profit Reconciliation ($000’s) 2013 2012 Profit before income tax 11,522 11,236 NPAT 7,558 7,517 Finance income (374) (176) Profit on sale of investment property after tax - (
Slide 26: 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