Slide 1: Half Year Results Presentation December 2016
For personal use only Half Year Results Presentation December 2016 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 Statutory first half NPAT3 has reduced to $2.4 million; Underlying Profit2 improved 21% on the prior corresponding period (pcp) • Prior year statutory result included $4.2 million NPAT3 from the sale of property • Underlying profit driven by improving prof
Slide 4: Cash Flow
Cash Flow A significant increase in cash generation from a planned decrease in stock levels For personal use only Half-Year Ending ($m) Dec-2016 Jun-2016 Dec-2015 The establishment of the new (current) (pcp) Slovakian facility is virtually complete, with the majority of EBIT 5.7 2.5 11.4 leather now
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $11.5 million during the first half For personal use only All amounts in $m’s Automotive Building Syndicate Gosh Total Total Leather Materials & Investment Capital 31 Dec 30 Jun Corporate Properties 2016 2016 Type of Debt: Bank debt – recourse - 5.0 2.4 - 7.4 4
Slide 6: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.43/share (June 2016: $7.42/share) Property Building Property used Syndicate Automotive Materials & by SFC Investment Gosh Total Total Leather1 Corporate Operations Properties Capital1 Property 31 Dec 2016 Net assets (Book) ($m
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 ($m’s) Dec-2016 Dec-2015 % Change (current) (pcp) Revenue 77.5 71.4 9% Segment EBIT 4.0 2.3 74% • Revenue increased 9% compared to pcp - sales volume increased but partially offset by FX impact. • Operating margin improvement • 13% re
Slide 9: Automotive Leather Outlook
Automotive Leather Outlook For personal use only Volumes are expected to continue trending upwards for the second half of FY17 due to the commencement of several new programs. Revenue and hide costs per sqm are expected to be similar to the first half, based on current FX rates. Further effici
Slide 10: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 10
Slide 11: Building Materials Results
Building Materials Results For personal use only Half-Year Ending ($m’s) Dec-2016 Dec-2015 % Change (current) (pcp) Revenue 21.7 28.4 (24%) Segment EBIT 1.2 2.4 (50%) Overall revenue for Building Products was similar to pcp and margins were down resulting from a differing sales mix for the period.
Slide 12: Building Materials Outlook
Building Materials Outlook For personal use only Building Materials continues to operate in a challenging West Australian environment for both the commercial and retail sectors. The slow down in these sectors continues to weigh on growth and profitability. However, Building Products on the east
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) ($m) Property used
Slide 14: Property – Lot 101, and Jandakot Rd
Property – Lot 101, 103 and 104 Jandakot Rd Lot 101, 103 & 104 Jandakot Road For personal use only A strategic 57 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 6.4 ha Urbanstone manufacturing (Lot 101). • 6.8 ha special use Nursery and Showrooms (Lot 104 & p
Slide 15: Investment Property (Syndicates)
Investment Property (Syndicates) For personal use only IBM Building, Hay St, West Perth, WA Hometown Cannington, WA Parks Centre, Bunbury, WA 15
Slide 16: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only Half-Year Ending ($m’s) Dec-2016 Dec-2015 % Change (current) (pcp) Revenue 2.3 3.0 (23%) EBIT (excluding Property Sales) 1.0 1.3 (23%) Property Sales EBIT1 - 5.7 Total Segment EBIT 1.0 7.0 1. Dec-15 includes the sale of SFC’s s
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 17
Slide 18: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only Half-Year Ending ($m’s) Dec-2016 Jun-2016 Dec-2015 (current) (pcp) Revenue 0.7 0.5 0.7 Segment EBIT excluding sale of property 0.4 0.3 0.4 Profit from sale of trust property1 0.1 - 0.3 Segment EBIT 0.5 0.3 0.7 1. Share of trust profits from the pr
Slide 19: Outlook – H2 FY17 Summary
Outlook – H2 FY17 Summary For personal use only • For H2 FY17, compared to previous corresponding period, we estimate: ‒ A significant increase in volume, revenue and profit for Automotive Leather (subject to exchange rate volatility). ‒ A decrease in profit for Building Materials. ‒ A modest decrea
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only Schaffer Corporation Limited results are reported under International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The Company discloses certain non-IFRS financial measures. The non-IFRS measures
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