Slide 1: Half Year Results Presentation December 2015
For personal use only Half Year Results Presentation December 2015 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 Automotive Leather Division Property Division Building Materials Division Howe (83% Owned) Syndicated Investment Property Delta • Precast Concrete – Herne Hill, WA • Finishing − Thomastown, Victoria, Australia −
Slide 3: Financial Performance
Financial Performance For personal use only First half results have improved on the prior corresponding period (pcp) • Includes $4.2 million realised from the sale of property • Underlying Profit has improved on prior year: – Significant revenue increase driven by Automotive Leather – Margin improve
Slide 4: Cash Flow
Cash Flow Positive operating cash generation and sale of property has reduced Net Debt For personal use only Half-Year Ending ($m) Dec-2015 Jun-2015 Dec-2014 (current) (pcp) EBIT 11.4 4.2 4.5 The build up of hide stock for the Add depreciation 2.7 2.6 2.6 significant increase in Automotive Leather v
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $6.7 million during the first half For personal use only All amounts in $m’s Automotive Building Syndicate Gosh Total Total Total Leather Materials & Investment Capital 31 Dec 30 Jun 31 Dec Corporate Properties 2015 2015 2014 Type of Debt: Bank debt – recourse
Slide 6: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.61/share (pcp $7.40/share) Property Building Property used Syndicate Automotive Materials & by SFC Investment Gosh Total Total Leather1 Corporate Operations Properties Capital1 Property 31 Dec 2015 Net assets (Book) ($m) 35.7
Slide 7: Automotive Leather
For personal use only 7 Automotive Leather
Slide 8: Automotive Leather Results
Automotive Leather Results For personal use only Half-Year Ending ($m’s) Dec-2015 Jun-2015 Dec-2014 (current) (pcp) Revenue 71.4 53.9 47.2 Segment EBIT 2.3 2.8 3.5 Sales Volumes were 41% higher than pcp and 23% higher than the immediately preceding 6 months. Howe is starting 16 new programs over
Slide 9: Automotive Leather Outlook
Automotive Leather Outlook For personal use only Volumes are expected to continue trending upwards for the second half of FY16 and into FY17. Hide stock on hand at Dec 2015 has been purchased at lower USD costs, however the stock has been purchased at an average USD 0.72 (compared to USD 0.80 at
Slide 10: Schaffer Building Materials / Building Products
Schaffer Building Materials For personal use only Building Products 10
Slide 11: Building Materials Results
Building Materials Results For personal use only Half-Year Ending ($m’s) Dec-2015 Jun-2015 Dec-2014 (current) (pcp) Revenue 28.4 24.0 25.1 Segment EBIT 2.4 0.8 0.6 Economic conditions and government spending in the Eastern States had contributed to an improvement in Building Products’ (paving and
Slide 12: Building Materials Outlook
Building Materials Outlook For personal use only The order banks are currently at reasonable levels. There are some encouraging prospects, although competition is extremely intense, particularly for the precast market. Cost reductions will continue to be reviewed and adjusted to maximise profi
Slide 13: Property Portfolio (Total Group)
Property Portfolio (Total Group) For personal use only SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value* Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used
Slide 14: Property – Lot 101, and Jandakot Rd
Property – Lot 101, 103 and 104 Jandakot Rd For personal use only A strategic 57 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 6.4 ha Urbanstone manufacturing (Lot 101) • 6.8 ha special use Nursery and Showrooms (Lot 104 & part Lot 103) • 44.1 ha currently z
Slide 15: Investment Property (Syndicates)
Investment Property (Syndicates) For personal use only IBM Building, Hay St, West Perth, WA Hometown Cannington, WA Parks Centre, Bunbury, WA 15
Slide 16: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only Half-Year Ending ($m’s) Dec-2015 Jun-2015 Dec-2014 (current) (pcp) Revenue 3.0 2.9 3.1 EBIT (excluding Property Sales) 1.3 1.2 1.2 Property Sales EBIT 5.7 - - Total Segment EBIT 7.0 1.2 1.2 Occupancy remained at 95% for the f
Slide 17: Gosh Capital
Gosh Capital For personal use only 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommodate approximately 175 units 20 17
Slide 18: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only Half-Year Ending ($m’s) Dec-2015 Jun-2015 Dec-2014 (current) (pcp) Revenue 0.7 0.6 0.5 Segment EBIT excluding sale of property 0.4 0.4 0.2 Profit from sale of trust property 0.3 - - Segment EBIT 0.7 0.4 0.2 Profits are steadily increasing as a r
Slide 19: Outlook – H2 FY16 Summary
Outlook – H2 FY16 Summary For personal use only • For H2 FY16, compared to previous corresponding period, we estimate: ‒ A significant increase in volume and revenue for Automotive Leather, but similar profit to H2 FY15 (subject to exchange rate volatility). This would be an improvement on the first
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only Half-Year Ending Half-Year Ending EBIT Reconciliation ($000’s) Dec 2015 Dec 2014 Underlying Profit Reconciliation ($000’s) Dec 2015 Dec 2014 Profit before income tax 9,615 2,730 NPAT 6,692 2,087 Finance income (39) (74) Profit on sale of share in
Slide 21: 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