Slide 1: Schaffer Corporation Investor Presentation FY23 Results ASX cover letter
23 August 2023 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - FY23 RESULTS Please find attached SFC’s Investor Presentation for the 2023 financial year. The Board has authorised the docum
Slide 2: FY23 Full-Year Results Presentation
FY23 Full-Year Results Presentation JUNE 2023 Creating shareholder value through the efficient operation of our businesses and long-term 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 FY23 Statutory NPAT was $13.6m1 (FY22: $26.2m) Full-Year ending June ($m) FY23 FY22 $ change 1▪ Automotive Leather NPAT1 of $11.1m, down $7.0m Revenue $183.6 $170.4 $13.2 compared to FY22 reflecting a challenging year for the Net Profit After Tax (NPAT)1 from
Slide 6: Fully Franked Dividends
Fully Franked Dividends SFC is a consistent dividend payer ▪ The Board has declared a final fully franked dividend of $0.45 per share, for shareholders on record on 8 September 2023, payable on 22 September 2023. ▪ Over the past 5 financial years o We have paid shareholders $55.4 million in fully fr
Slide 7: Cash Generated
Cash Generated Full-Year Ending June ($m) FY23 FY22 1 Increase in Automotive Leather working capital NPAT 13.6 26.2 ▪ Net working capital days increased 46 days compared to FY22, Net unrealised pre-tax (gains)/losses – group investments (1.4) 2.7 primarily due to lower hide purchases in 2H23 which r
Slide 8: 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 Jun 23 Jun 22 Properties Type of Debt: Bank and other debt (27.7) (1.4) (12.2) (22.2) (7.8) (71.4) (40.0) Equipment finance (8.0)
Slide 9: Automotive Leather
Automotive Leather Revenues increased to $143 million (FY22: $136 million), NPAT was down 39% to Full-Year ending June ($m) FY23 FY22 $11.1 million (FY22: $18.1 million). Revenues, operating margins, productivity and Revenue $142.8 $136.0 cashflow were impacted by: Segment NPAT1 $11.1 $18.1 ▪ The de
Slide 10: Automotive Leather continued
Automotive Leather continued Risks ▪ Slower than expected or delays in new program launches. ▪ Continued adverse currency volatility. ▪ Global economic uncertainties, including a global economic slowdown. ▪ Inflationary pressures, particularly labour and energy. Outlook ▪ Revenues and profitability
Slide 11: Group Investments
Group Investments Pre-Tax Net Equity Value1 of $186.5 million or $13.73/share Over the past five financial years: ▪ Pre-Tax Net Equity Value1 has increased by $73.3 million. 1. Pre-Tax Net Equity Value = market value less debt (including syndicated property debt) 2. All values represent SFC’s share,
Slide 12: Group Investments
Group Investments NPAT1 of $3.2m (FY22: $11.5m) - The prior year results included one off gains from: Full-Year ending June ($m) FY23 FY22 ▪ The sale of 23 lots at Beachside, North Coogee. Revenue $12.1 $17.2 ▪ The sale of various syndicated properties managed by Ascot Capital. Segment NPAT1 $3.2 $1
Slide 13: Group Investments – Property
Group Investments – Property Fugro Building West Perth, WA Hometown Cannington, WA Home Space, Tamworth, NSW 39 Dixon Rd Rockingham, WA Parks Centre Bunbury, WA Full-Year Results Presentation JUNE 2023 12
Slide 14: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Aerial View – February 2022 Full-Year Results Presentation JUNE 2023 13
Slide 15: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. South Connect – Jandakot Logistics Estate is well located to benefit from the increased demand for logistic and “last- mile” warehousing driven by the rapi
Slide 16: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Artist’s Impression; Future Lot 811 Jandakot Road ▪ Future Lot 811 is now DA approved and ready for development. ▪ Approved for warehouse tenancies with aggregate lettable area of 36,000 square metres. Full-Year Results Presentation JUNE 2023 15
Slide 17: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Artist’s Impression; South Connect Logistics Estate, Jandakot Full-Year Results Presentation JUNE 2023 16
Slide 18: Delta
Delta Full-Year ending June ($m) FY23 FY22 Summary Revenue $28.7 $17.3 ▪ Delta returned to profitability with NPAT of $2.0m (FY22: -$0.6m loss) Segment NPAT $2.0 ($0.6) notwithstanding challenges including: o Design and engineering complexity on a large project which impacted margins and cashflow du
Slide 19: Group Outlook – 1H24
Group Outlook – 1H24 Outlook Risk Factors While the current environment has many potential risks, we see opportunity ▪ Adverse currency volatility for our manufacturing operations during 1H24. ▪ Broader economic uncertainties, including an economic slowdown ▪ Automotive Leather ▪ Delayed program lau
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information As at Schaffer Corporation Limited results are reported under Reconciliation of Net Debt ($000’s) International Financial Reporting Standards (IFRS) as issued by the Jun 2023 Jun 2022 International Accounting Standards Board. The Company Interest-bearing loans and borr
Slide 21: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value1,2 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY23 FY23 Pre-Tax Net Equity Value1,2 ($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 $10.1 $0.74 5% Property: Rental Income $
Slide 22: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Net Equity Land Size SFC SFC Share of Address Description Ownership Structure Lettable Area Market Value on Capital Value After (sqm) Ownership % Debt ($m) (sqm) ($m) Gain ($m) Tax ($m) Property used by SFC Operat
Slide 23: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Net Equity Land Size SFC SFC Share of Address Description Ownership Structure Lettable Market Value on Capital Value After (sqm) Ownership % Debt ($m) Area (sqm) ($m) Gain ($m) Tax ($m) Development Sites Lot 706 J