Slide 1: Full Year Results Presentation June 2009
For personal use only Schaffer Corporation Full Year Results Presentation June 2009
Slide 2: Lower Property earnings largely offset by rise in Building Materials & Automotive Leather
Lower Property earnings largely offset by rise in earnings for Building Materials & Automotive Leather For personal use only % Full Year Ending 30 Jun (A$m) to Jun-09 to Jun-08 change Revenue 169.5 195.9 -13% EBITDA 26.9 27.9 - 4% EBIT (net interest basis) 21.3 22.1 - 3% Net profit 10.5 10.9 - 4% Ne
Slide 3: Net Profit before Tax
Net Profit before Tax For personal use only 12.0 +15% +8% 10.0 8.0 -46% 6.0 4.0 $M's 2.0 0.0 -3% -2.0 Automotive Leather Building -4.0 Materials Property Corp./Interest -6.0 -8.0 FY08 FY09 3
Slide 4: NPAT Evolution
For personal use only 4 $M's 4 6 8 10 12 14 16 NPAT FY08 $10.9M EBIT - Build. Mat. $1.3M NPAT Evolution Net rental inc. $1.3M EBIT - Leather $0.7M Lower tax $0.5M EBIT - Prop. $4.1M Sales Other $0.1M NPAT FY09 $10.5M
Slide 5: Cash flow
Cash flow For personal use only Year Ending 30 Jun (A$m) Jun-08 Jun-09 EBITDA 27.9 27.5 Net interest paid (5.4) (5.4) Tax paid (6.5) (1.4) Howe change in trade working capital 12.7 (16.0) Other changes in working capital (4.8) 2.4 Total operating cash generated 23.9 7.1 Net Debt reduction/(increase)
Slide 6: Debt Position
Jun-08 Debt Position For personal use only Build. Mat. JV Invest. Automotive Total at + Corp. Properties Leather 30/06/09 3 distinct and separate “debt pools”. Type of Debt :- Bank Debt - recourse 21.2 3.2 - 24.4 Bank Debt - non-recourse - 23.4 - 23.4 Separate loan facilities Govt. Loans - non-recou
Slide 7: Interest Cover
Interest Cover For personal use only Building Auto Property Other Total Materials Leather EBIT 10,032 9,608 3,558 (1,891) 21,307 Interest (net) 1,456 2,249 1,670 - 5,375 Interest Cover 6.9 4.3 2.1 n/a 4.0 All interest cover and LVR ratios fall well within lending covenants (if applicable), across ea
Slide 8: SFC Dividend Yield History
SFC Dividend Yield History For personal use only Average dividend yield of 8.9% over the past 10 years, fully franked !! Over $93m paid out in dividends. 12.0% 10.0% Dividend Yield* 8.0% 6.0% 4.0% 2.0% 0.0% Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Financial Year ended * - Yield
Slide 9: Automotive Leather
For personal use only 9 Automotive Leather
Slide 10: Automotive Leather Results
Automotive Leather Results For personal use only A$M Jun-08 Jun-09 % change Revenue 119.9 96.6 -19% Segment EBIT 8.9 9.6 +8% Margin 7% 10% • Revenue down due to lower volumes, primarily in North America & Europe, however sales in Asia increased slightly. • EBIT & margin improvement due to depreciati
Slide 11: Automotive Leather - Global Footprint
Automotive Leather -Global Footprint For personal use only AACHEN DETROIT TOKYO KOSICE SHANGHAI JUAREZ BANGKOK MELBOURNE Offices Factories
Slide 12: Business remains well positioned to be globally competitive
The business remains well positioned to be globally competitive, and depreciation of the AUD has improved profitability. For personal use only • Revenue in Asia increased slightly despite slump in global automobile sales.(China now manufacturing more cars than North America). • New supply contract a
Slide 13: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products
Slide 14: Building Materials Results
Building Materials Results For personal use only Building Materials A$M Jun-08 Jun-09 % change Revenue 65.6 66.0 +1% Segment EBIT 8.7 10.0 +15% Margin 13% 15% • Record activity level for Delta Corporation’s pre-stressed and pre-cast concrete business. • Improved productivity and lower integration co
Slide 15: Building Products (paving, walling & imported products)
Building Products (paving, walling & imported products) For personal use only • National network of 13 Urbanstone Central stores/display centres across the country. • Looking at opportunities to organically expand retail network nationally, in the next few years. • Expanded product range to be intro
Slide 16: Delta Corporation (pre-cast & pre-stressed concrete)
Delta Corporation (pre-cast & pre-stressed concrete) For personal use only • The strategy to invest in upgrading manufacturing and storage facilities has resulted in outstanding returns in FY09. • Production levels are likely to return to more “normal” levels in the current financial year. • Major p
Slide 17: Property
Property For personal use only IBM Building, Hay St, West Perth 616 St Kilda Rd, Melbourne 89 St Georges Tce, Perth 17
Slide 18: Property Result
Property Result For personal use only A$M Jun-08 Jun-09 % change Revenue 9.8 6.5 -34% Segment EBIT 6.6 3.6 -46% Margin 67% 55% • Revenue and earnings negatively impacted by lack of property sales in comparison to prior year (sale of Queens Rd Melbourne $1.4m EBIT & Mindarie Keys land sales $2.9m EBI
Slide 19: Valuable portfolio of assets with recurring income
Valuable portfolio of assets with recurring income & substantial unrealized capital gains For personal use only § JV investment portfolio of 7 commercial and retail properties in WA & Victoria, plus an industrial sub-division (Neerabup WA) . Mindarie Keys residential sub-division now virtually compl
Slide 20: Syndicated JV investment partners are industry experts
Syndicated JV investment partners are industry experts with track record of success For personal use only 20
Slide 21: Outlook – H1 2010
Outlook – H1 2010 For personal use only • Building Materials – More “normal” activity levels at Delta are likely to result in materially lower revenue and EBIT for the division compared to 2009. – Building Products earnings are expected to improve slightly, but a significant improvement remains depe
Slide 22: Outlook - Dividends
Outlook - Dividends For personal use only • The Board currently expects to pay an ordinary dividends at 40c per share for the 2010 financial year. Nevertheless future dividends will be subject to reasonably favourable trading conditions, and possible changes to the future group cash and debt positio