Slide 1: Schaffer Corporation Full Year Results Presentation June 2008
For personal use only Schaffer Corporation Full Year Results Presentation June 2008
Slide 2: SFC Performance Highlights
SFC Performance Highlights For personal use only Operations Major Investments • 2008 NPAT $10.9m (+6%) • Acquisition of Archistone Pty Ltd $5.8m. • 2008 EBIT $22.1m (+15%) • Acquisition of three retail properties & • 2008 Operating cash flow $23.5m (+69%) one future retail development site $8.0m. •
Slide 3: Leather & Property underpin Profit Rise
Leather & Property underpin Profit Rise For personal use only % Full Year Ending 30 Jun (A$m) to Jun-07 to Jun-08 change Revenue 147.7 195.9 + 33% EBITDA 23.9 28.5 + 19% EBIT (net interest basis) 19.1 22.1 + 16% Net profit 10.3 10.9 + 6% EPS 0.73 0.77 Return on average capital employed (ROACE) 17% 1
Slide 4: NPAT Evolution
For personal use only 4 $M's 4 6 8 10 12 14 16 18 NPAT FY07 $10.3M Leather EBIT $2.9M NPAT Evolution Property EBIT $2.8M Build. Mat. EBIT $3.1M $0.9M Tax Interest $1.0M $1.3M NPAT FY08 $10.9M
Slide 5: Cash flow
Cash flow For personal use only Full Year Ending 30 Jun (A$m) Jun-07 Jun-08 EBITDA 23.9 27.9 Net interest paid (4.4) (5.4) Tax paid (4.2) (6.5) Howe change in trade working capital (1.1) 12.7 Other changes in working capital 0.4 (4.8) Other (0.7) - Total operating cash generated 13.9 23.9 Net Debt r
Slide 6: Jun-08 Debt Position
Jun-08 Debt Position For personal use only Non- $M Recourse Total Recourse Building Materials 22.8 0.0 22.8 Leather 0 36.7* 36.7 Property JV’s 2.1 23.9 26.0 Total Debt 24.9 60.6 85.5 Cash Reserves 21.7 Net Debt 63.8 Net Interest Cover 4.1 • 30-Jun-08 undrawn debt facilities: $21.4m; (Increased to $2
Slide 7: Automotive Leather
For personal use only 7 Automotive Leather
Slide 8: Automotive Leather Results
Automotive Leather Results For personal use only A$M Jun-07 Jun-08 % change Revenue 84.4 119.9 +42% Segment EBIT 6.0 8.9 +49% Margin 7% 7% • Strong sales growth lead by Asian customers (China). • Substantial earnings growth despite the appreciation of the AUD. • Each 1c movement in the AUD/USD excha
Slide 9: Business repositioned to be globally competitive, strong Asian growth
Howe business now repositioned to be globally competitive, strong growth in Asian market For personal use only Revenue ($M's) $120.0 • Sales to Asian customers up 228%. $100.0 • Labour intensive cost cutting Asia $61.7m operations all located in lower labour $80.0 $27.0m cost countries (China, Mexic
Slide 10: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products
Slide 11: Building Materials Results
Building Materials Results For personal use only Building Materials A$M Jun-07 Jun-08 % change Revenue 55.1 65.6 +19% Segment EBIT 10.8 8.7 -19% Margin 20% 13% • Strong sales growth boosted by first-time inclusion of Archistone acquisition and record revenue for Delta Corporation. • Earnings negativ
Slide 12: 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. • Additional retail development site purchased in Clarkson WA. • Further efficiency gains to come from rationalization of manufacturing
Slide 13: Delta Corporation (pre-cast & pre-stressed concrete)
Delta Corporation (pre-cast & pre-stressed concrete) For personal use only • $5m capex project to expand production and storage facilities almost complete. • Record revenue in FY08 and strong order book going into FY09. • Current major projects include, Bishop’s Ikea Mega Store, Innaloo Perth See an
Slide 14: Property
Property For personal use only IBM Building, Hay St, West Perth 616 St Kilda Rd, Melbourne 89 St Georges Tce, Perth 14
Slide 15: Property Result
Property Result For personal use only A$M Jun-07 Jun-08 % change Revenue 8.1 10.5 +29% Segment EBIT 3.8 6.6 +75% Margin 46% 63% • Revenue and earnings positively impacted by sale of 71 Queens Rd Melbourne ($1.4m profit before tax announced during first half results), and strong sales at Mindarie Key
Slide 16: 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) and a residential sub-division (Mindarie Keys, WA). 9 wholly o
Slide 17: Syndicated JV investment partners are industry experts
Syndicated JV investment partners are industry experts with track record of success For personal use only 17
Slide 18: Outlook – H1 2009
Outlook – H1 2009 For personal use only • Building Materials – Delta set to continue to leverage off robust WA construction/infrastructure projects due to strong order book. – Building products earnings likely to be somewhat lower than pcp due to housing slowdown, but stronger distribution model wil
Slide 19: Outlook - Dividends
Outlook - Dividends For personal use only • The Board expects to maintain ordinary dividends at 50c per share for the 2009 financial year, with a 25c per share interim dividend payable in March 2009. 19