Slide 1: Full Year Results Presentation June 2014
For personal use only Full Year Results Presentation June 2014 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 (83% owned) • Precast concrete - Herne Hill, WA • Finishing - Thomastown, Victoria • Tannery - R
Slide 3: Overview
Overview For personal use only FY14 EBIT1 increased by 31% but statutory profit was down after $3.7 million goodwill write-off • Automotive Leather had increased volumes and favourable FX impacts. • Building Material’s profit was down as competition continued to intensify and margins were compressed
Slide 4: Financial Performance
Financial Performance For personal use only EBIT increased 31% but Statutory Profits decreased by 18% due to a $3.7m non- tax deductible goodwill write-off Full-Year June-20141 June-20132 % Change Revenue ($m) 163.6 138.4 18% EBITDA ($m)3 24.3 20.0 22% EBIT ($m)4 19.3 14.8 31% NPAT ($m)5 after $3.7m
Slide 5: Cash Flow
Cash Flow For personal use only Full-Year Ending ($m) June-2014 June-2013 Net Debt Increase (+$2.1m) represented by: EBITDA 24.3 20.0 Gosh Debt (+$4.7m) Less profit of disposal of assets (0.7) (4.0) Net interest paid (3.4) (3.2) Gov Loan Pay (-$2.5m) Tax paid (2.9) (0.5) Other Debt (+$1.8m) (I
Slide 6: Group Net Debt
Group Net Debt Group Net Debt is conservative and the majority is non-recourse to SFC For personal use only Building Syndicate Total Total Materials & Investment Automotive Gosh 30 June 30 June All amounts in $m’s Corporate Properties Leather Capital 2014 2013 Type of Debt: Bank debt - recourse 3.0
Slide 7: Group Net Debt
Group Net Debt 80.0 NET DEBT ($m) For personal use only 69.5 70.0 25.5 61.1 60.0 21.6 51.5 50.0 25.8 39.4 35.4 26.6 40.0 37.5 18.4 25.6 15.9 10.0 30.0 22.6 22.7 20.0 22.1 22.5 17.4 10.0 13.9 3.0 1.4 4.6 0.0 -0.6 0.3 -4.9 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 -10.0 Building Materials & Corporate
Slide 8: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.14/share (pcp $6.58/share) Building Syndicate Materials & Investment Automotive Total Corporate Properties Leather1 Gosh Capital1 30 June 2014 Net assets (Book) ($m) 38.4 (8.2) 30.7 6.1 67.0 Net assets (Market Value) ($m) 46.9
Slide 9: Automotive Leather
For personal use only 9 Automotive Leather
Slide 10: Automotive Leather Results
Automotive Leather Results For personal use only $m June-2014 June-2013 % Change Revenue 103.5 72.9 42% Segment EBIT 15.21 5.0 202% 1. EBIT includes abnormally high stock profits in the first half of FY14 (refer below) Sales volumes increased by 16%, with a 31% increase in Europe, due to the comme
Slide 11: Automotive Leather Key Points
Automotive Leather Key Points For personal use only New program activity, based on awarded programs, is expected to increase production volumes going forward. This includes newly awarded programs by another major European car manufacturer. This is expected to have a more significant impact in FY16
Slide 12: Automotive Leather Outlook H1 FY15
Automotive Leather Outlook H1 FY15 For personal use only • Volumes for H1 FY15 are expected to be at similar levels to H2 FY14, and then increase in H2 FY15 based on awarded new programs. • We are net exporters in Euro and net importers in USD. Based on current level of exposure: A 1c 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 $m June-2014 June-2013 % Change Revenue 52.0 58.5 (11%) Segment EBIT 1.8 5.5 (68%) Margin 3.4% 9.4% The decrease in resource sector related civil infrastructure developments in Western Australia have decreased Building Materials revenue and margin,
Slide 15: Building Materials Key Points
Building Materials Key Points For personal use only Building Products The Eastern States commercial sector is showing some signs of improvement. Masonry Block is still gaining momentum, including value added architectural products. Focus is on cost reductions across Production and Retail that
Slide 16: Building Materials Outlook H1 FY15
Building Materials Outlook H1 FY15 For personal use only Order books are at similar levels to the beginning of FY14. But competition has intensified and margin compression is evident. The EBIT for H1 FY15 will not be as strong as the first half of FY14. We expect profit improvement from adju
Slide 17: 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 17
Slide 18: 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 $27.4 million of unrealised property Océ House, 616 St Kilda Rd, Melbourne, VIC 20% value before tax above book value. Home
Slide 19: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only $m June-2014 June-2013 % Change Revenue (excluding Property Sales) 6.1 6.5 (7%) EBIT (excluding Property Sales) 2.6 2.9 (10%) Margin 43% 45% Property Sales Revenue1 1.6 - - Property Sales EBIT1 0.5 - - Total Segment EBIT 3.1 2.
Slide 20: Gosh Capital
Gosh Capital For personal use only 20 39 Dixon Road, Rockingham, WA Bulky goods retail with 3 tenants • Spotlight • Rays Outdoors 10 Bennett Avenue, North Coogee, WA • Newly constructed 1001 sqm Petbarn facility Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommod
Slide 21: Gosh Capital Portfolio
Gosh Capital Portfolio For personal use only Book Market Value1 Value Debt Property ($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) $9.3 $8.9 $4.7 Property Unit Trusts Space 207 and Harbour Park, NSW (Offices
Slide 22: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only $m’s Jun-2014 Jun-2013 % Change Revenue 0.5 0.6 (6%) Segment EBIT (excluding insurance proceeds) 0.2 0.5 (49%) Margin 46% 85% Insurance proceeds less associated costs 1.21 4.01 Segment EBIT 1.4 4.5 (69%) 1. Relates to fire damage claim for 10 Benn
Slide 23: Group Outlook – H1 FY15 Summary
Group Outlook – H1 FY15 Summary For personal use only • For H1 FY15 compared to prior corresponding period we estimate: • Significantly lower EBIT for Automotive Leather due to the abnormally high stock profits in the prior corresponding period. • Lower subdued result for Building Materials compared
Slide 24: Dividends
Dividends For personal use only • The Board has declared a final dividend of 13¢ per share fully franked, an 8% increase on prior corresponding period, payable on 19 September 2014. • This makes the total dividend for FY14 25¢ per share (FY13: 23¢), a 9% increase on prior corresponding period, and e
Slide 25: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only June June June June EBITDA Reconciliation ($000’s) 2014 2013 Underlying Profit Reconciliation ($000’s) 2014 2013 Profit before income tax 12,148 11,522 NPAT 6,188 7,588 Finance income (202) (374) Impairment of Goodwill 3,696 - Finance costs 3,632
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