Slide 1: ASX Market Announcements cover letter
18 August 2021 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - FY21 RESULTS Please find attached SFC’s Investor Presentation for the 2021 financial year. The Board has authorised the docum
Slide 2: FY21 Results Presentation
FY21 Results Presentation June 2021 Creating long-term shareholder value through the efficient operation of our businesses and growth in our investments
Slide 3: Organisation Chart
Organisation Chart MANUFACTURING GROUP INVESTMENTS AUTOMOTIVE LEATHER (83% OWNED) SFC (100%), GOSH CAPITAL (83%) Finishing Company Owned Property - Kosicé – Slovakia - Jandakot Rd, Jandakot, WA - Thomastown – Victoria, Australia - Dixon Road, Rockingham, WA (via Gosh) - Bennett Ave, North Coogee
Slide 4: Consolidated Financial Performance
Group Consolidated Financial Performance Full Year Ending June 2021 June 2020 % change NPAT1 up $15.2 million, +65% Revenue ($m) $196.3 $155.6 26% 38% increase in Automotive Leather profit compared to Covid-19 NPAT1 ($m) $38.8 $23.6 65% impacted FY20 Unrealised, non-cash net gains for the Group’
Slide 5: Change in NPAT – FY21 versus FY20
Change in NPAT1 – FY21 versus FY20 NPAT1 increased $15.2m (+65%) versus FY21 +$1.5m +$0.6m +$2.5m 1 Automotive Leather NPAT of $24.4m versus FY20 $17.6m +$2.2m FY20 impacted by Covid-19 plant closures +$1.6m +$6.8m 2 Delta NPAT of $1.0m versus FY20 underlying loss of $0.6m Challenging, but imp
Slide 6: Cash Flow
Cash Flow 1 Decrease in Automotive Leather Working Capital Full Year Ending ($m) June 2021 June 2020 Significant decrease in Automotive Leather working capital NPAT 38.8 23.6 during H1 as excess hides resulting from Covid-19 shutdowns in H2 FY20 were utilised. Unrealised pre-tax gains – group invest
Slide 7: Group Net Debt Decrease
Group Net Debt Decrease ($m) -$0.4 Net debt decreased due to: $12.3 strong operating cash generation of $48.2m from the Automotive Leather division, as sales recovered $16.1 and hide inventories reduced, following the Covid shutdowns in $3.7 H2 FY20. $10.9 $59.9 $6.2m proceeds from the sale of l
Slide 8: Group Net Debt Overview
Group Net Debt Overview ($m) MANUFACTURING GROUP INVESTMENTS Syndicated Total Total Automotive Gosh All amounts in $m SFC Investments Investment 30 June 30 June Leather Capital Properties 2021 2020 Type of Debt: Bank and other debt (9.2) (1.0)2 (21.8) (6.6) (38.6) (53.4) Equipment finance (7.8) - -
Slide 9: Dividends
Dividends The Board has declared a final fully franked dividend of 45¢ per share, an increase of 29% compared to the FY20 final dividend. 90 Payable on 17 September 2021. 80 SFC has paid $42.7m fully franked dividends in the past 5 years and $59.4m in the past 10 years. 70 45 25 25 25 26 23 20
Slide 10: Automotive Leather
Automotive Leather Strong Recovery compared to severely impacted Covid-19 FY20 Full Year Ending June 2021 June 2020 Significant increase in volumes drove a 27% increase in revenue and 38% increase in NPAT. The global automotive industry recovered from the Covid-19 related industry shut-downs Rev
Slide 11: Group Investments
Group Investments NPAT increased by $6m Full Year Ending June 2021 June 2020 NPAT of $16.1m includes: Revenue ($m) $14.6 $7.7 unrealised, non-cash gains from the revaluation of Segment NPAT1 ($m) $16.1 $10.1 equity investments of $10.7m after tax (FY20: $8.5m) – primarily HTG2 realised profit
Slide 12: Group Investments – Pre-Tax Net Equity Value Increase FY17 to FY21
Group Investments Pre-Tax Net Equity Value1 Increase ($m) – FY17 to FY21 $191.7 We continue to grow Group Investments, $20.6 investing opportunistically with the $162.6 objective to maximising shareholder value $24.4 over the medium and long-term 19% $134.4 $56.4 CAGR4 Pre-Tax Net Equity Value h
Slide 13: Group Investments – Pre-Tax Net Equity Value FY21
Group Investments Pre-Tax Net Equity Value1 Increase ($m) – FY21 +$5.3 -$1.3 +$15.3 $0.0m -$10.9 +$2.4 +$18.3 $191.7 $162.6 June 2020 Auto Leather Dividends SFC Dividends Paid Realised Gains - Unrealised Gains - Gains - Property Other June 2021 Received Equities Equities 1. Market value less debt 2.
Slide 14: Group Investments – Property
Group Investments – Property IBM Building West Perth, WA Hometown Cannington, WA Marriott Hotel New York, USA 6 Centro Ave Subiaco WA Magnesium Dr Crestmead, QLD 39 Dixon Rd Rockingham, WA The Residences at Lakeview Memphis, USA Buller St Macquarie, QLD Cope Logistics 7 properties nationwide DoubleT
Slide 15: Group Investments – Property Portfolio
Group Investments – Property Portfolio Current Lettable Area SFC SFC Share of Book SFC Share of SFC Share of Debt Notional Tax on Address Description Ownership Structure Land Size (sqm) Net Equity Value ($m) (sqm) Ownership % Value ($m) Market Value ($m) ($m) Capital Gain ($m) PROPERTY USED BY SFC O
Slide 16: Property Portfolio (continued)
Group Investments – Property Portfolio (continued) Current Lettable Area SFC SFC Share of Book SFC Share of SFC Share of Debt Notional Tax on Address Description Ownership Structure Land Size (sqm) Net Equity Value ($m) (sqm) Ownership % Value ($m) Market Value ($m) ($m) Capital Gain ($m) DEVELOPMEN
Slide 17: Beachside North Coogee
Beachside North Coogee A 2.1 hectare property that has been zoned high density residential from industrial. State and Federal Government stimulus that extended from 2020 into 2021 accelerated interest in the site Stage 1 is now fully sold (20 of 28 medium density 2 to 3 storey single residential
Slide 18: Jandakot Road Property
Jandakot Road Property A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. Approximate developable lot area of 34ha after allowing for internal and external roads, drainage, buffers and the Bush Forever area. Allowable uses are Warehouses, Showroo
Slide 19: Delta
Delta Summary Full Year Ending June 2021 June 2020 Delta returned to profit for H1 and was close to break even for H2. Revenue ($m) $16.5m $17.8m A large infrastructure project that was due to commence during H2 was Segment Underlying NPAT1 ($m) $1.0m ($0.6m) delayed. 1. Underlying NPAT excludes
Slide 20: Outlook – H1 FY22
Group Outlook – H1 FY22 Summary Risk Factors Since February 2021, a global semiconductor chip shortage has Covid-19 progressively worsened, leading to sporadic production line shutdowns Global semiconductor chip shortages creating Automotive of most European OEM’s. Our customers are warning of
Slide 21: Non-IFRS Financial Information
Non-IFRS Financial Information Reconciliation of Net Debt excluding lease liabilities for leases previously As at Schaffer Corporation Limited results are reported under International classified as operating leases ($m’s) June 2021 June 2020 Financial Reporting Standards (IFRS) as issued by the Inte
Slide 22: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value1 FY17 FY18 FY19 FY20 FY21 FY21 FY21 FY21 vs FY20 Pre-Tax Net Equity Value1 ($m) ($m) ($m) ($m) ($m) Per Share % of Portfolio ($m) Property: Used by SFC Operations $19.6 $11.4 $11.4 $9.7 $9.7 $0.71 5% $0.0 Property: Rental Income $19.9 $37.5 $
Slide 23: Disclaimer
Disclaimer 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, completeness or reliability of