Slide 1: Full Year Results Presentation June 2012
For personal use only Full Year Results Presentation June 2012 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 Profits are up 56% despite tough conditions • Building Materials has performed strongly. • Europe and China combined leather sales volumes up 27%. • Ongoing benefits from strategic decision to close Automotive Leather’s North American operations. Strong cash flow and
Slide 4: Financial Performance
Financial Performance For personal use only Statutory Profits increased by 56% despite tough conditions Full-Year June-2012 June-20111 % Change Revenue ($m) $152.6 $138.1 11% EBITDA ($m)2 $19.9 $17.1 16% EBIT ($m)3 $14.9 $12.2 22% NPAT ($m) $7.5 $4.8 56% EPS $0.53 $0.34 57% Return on average capital
Slide 5: Financial Performance: Underlying Profit
Financial Performance For personal use only The Underlying Profit increase is satisfying Full-Year June-2012 June-2011 % Change Underlying Profit1 ($m) $6.4 $2.4 162% Underlying EPS $0.45 $0.17 163% Underlying ROACE 12% 7% 1. Refer to slide 24 for Underlying Profit reconciliation 5
Slide 6: Cash Flow
Cash Flow Strong cash flow from operations used to reduce net debt For personal use only Full-Year Ending ($m) June-2012 June-2011 EBITDA 19.9 17.1 Less profit of disposal of assets / non-cash items (1.3) (5.2) Net interest paid (3.8) (4.5) Tax paid (3.1) (2.1) Change in Howe trade working capital 3
Slide 7: Group Net Debt
Group Net Debt Group Net debt reduction of $12.2m adds more strength to our Balance Sheet For personal use only Building Syndicated Total Total Materials & Investment Automotive 30 June 30 June All amounts in $m’s Corporate Properties Leather 2012 2011 Type of Debt: Bank debt - recourse 4.2 3.9 - 8.
Slide 8: Debt and Assets
Debt and Assets For personal use only Market value of Group Net Tangible Assets $6.24/share (pcp $5.81/share) Building Syndicated Materials & Investment Automotive Total Corporate Properties Leather 30 June 2012 Net debt ($m) 1.4 22.0 15.9 39.3 % debt recourse to SFC 100% 18% 0% 21% Net assets (Book
Slide 9: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 9
Slide 10: Building Materials Results
Building Materials Results For personal use only $m’s June-2012 June-2011 % Change Revenue 56.4 51.9 9% Segment EBIT 5.0 3.9 26% Margin 9% 8% Momentum in resource developments in Western Australia has increased profits, particularly for Delta (precast prestressed concrete). Building Products (pa
Slide 11: Building Products Key Points
Building Products For personal use only Key Points A strong order bank by the end of FY12 - driven by our strong customer service and exceptional product quality. Market leader in Western Australia for Masonry Block, since commencement of production in 2011. Further product development to increa
Slide 12: Building Products: Major Projects Completed
Building Products For personal use only Major Projects Completed URBANSTONE AUSTRALIAN GRANITE Western Australia: Western Australia: • Haden Place Apartments - South Perth • Busselton Streetscapes - Shire of Busselton • Town of Kwinana - City Centre • Forrest Chase redevelopment stage 3 & 4 - Perth
Slide 13: Delta Key Points
Delta For personal use only Key Points Strong growth in resource and infrastructure sectors. Leading position in Western Australia allows Delta to focus on highly specialised work. Set an industry benchmark with the successful completion of complex architectural wall panels for the high profil
Slide 14: Automotive Leather
For personal use only 14 Automotive Leather
Slide 15: Automotive Leather Results
Automotive Leather Results For personal use only $m’s June-2012 June-2011* % Change Revenue 89.6 79.2 13% Segment EBIT 7.4 3.3 124% Margin 8% 4% * Previous year includes discontinued North American cutting operations 13% increase in revenue despite closing the North American cutting operations in
Slide 16: Automotive Leather Key Points
Automotive Leather For personal use only Key Points Volumes of cut leather sales for China and Europe increased 27%. Realised benefits of the strategic decision to close the North American operations. Currency translation into strong A$ is having negative effects. We are focused on our core bu
Slide 17: Automotive Leather Global Footprint
Automotive Leather Global Footprint For personal use only Aachen, Germany Tokyo, Kosice, Japan Slovakia Shanghai, China Melbourne, Australia Offices Factories 17
Slide 18: Property
Property For personal use only 616 St Kilda Rd, Melbourne IBM Building, Hay St, West Perth Hometown Cannington, WA 18
Slide 19: Property Results
Property Results For personal use only $m’s June-2012 June-2011 % Change Revenue 6.6 6.8 (4%) Segment EBIT (excl. disposals and insurance) 2.8 2.9 (4%) Net rental margin 42% 43% Profit on disposals 0.41 4.32 Insurance proceeds less associated costs 1.33 - Segment EBIT 4.5 7.2 (37%) 1. Relates to sal
Slide 20: Property Portfolio
Property Portfolio For personal use only % Property Interest Total estimate of $48.1 million of unrealised property value before tax. Syndicated Investment Properties IBM Building, 1060 Hay St, West Perth, WA 22% • $28.4m from syndicated properties portfolio Océ House, 616 St Kilda Rd, Melbourne, VI
Slide 21: Outlook – H1 FY13
Outlook – H1 FY13 For personal use only Challenging environment but some positive signs Automotive Leather • Volumes are expected to increase in the second half of FY13 and into FY14 based on awarded programs. • Revenue and EBIT will be materially lower for H1 due to the ongoing strength of the A$ a
Slide 22: Outlook – H1 FY13 continued
Outlook – H1 FY13 continued For personal use only Building Materials • Strong order banks going into FY13 aided by resource projects in Western Australia. • Revenue and EBIT for the first half of FY13 are expected to be higher than the previous corresponding period. • Further penetration into the ma
Slide 23: Outlook – H1 FY13 continued
Outlook – H1 FY13 continued For personal use only Overall • Reduced Revenue and EBIT expected for H1 FY13 (excluding potential final settlement of fire damage claim). • Our diversity will limit the reduction - Building Materials and Property division performance is improving whilst the Automotive Le
Slide 24: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only June June June June EBITDA Reconciliation ($000’s) 2012 2011 Underlying Profit Reconciliation ($000’s) 2012 2011 Profit before income tax 11,236 11,648 NPAT 7,517 4,816 Loss before tax from discontinued Profit on sale of investment property after
Slide 25: 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