Slide 1: Half-Year Results Presentation December 2018
Half-Year Results Presentation December 2018 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) SCHAFFER CORPORATION LIMITED Manufacturing Group Investments SFC Gosh Capital (83% Owned) Automotive Leather (83% Owned) Company Owned Property Company Owned Property • Finishing • Jandakot Rd, Jandakot, WA • Bennett Ave, North Coogee − Kosicé – Slovakia • Camper
Slide 3: Group Consolidated Financial Performance
Group Consolidated Financial Performance Revenue down but profitability up • Automotive Leather revenue down 13%. • Underlying profitability up 26% reflecting operational efficiencies and FX gains. • Delta returned to profitability. Half-Year Dec-2018 Dec-2017 Revenue from continuing operations ($m)
Slide 4: Cash Flow
Cash Flow Half-Year Ending ($m) Dec-2018 Jun-2018 Dec-2017 (current) (pcp) Payment of tax relating NPAT 12.7 12.1 11.2 to increased profit in Add depreciation 2.2 2.2 2.6 FY18 (Profit)/loss on sale of businesses and (0.2) - (5.0) assets Add non-cash impairment of assets - - 4.5 Add minority interest
Slide 5: Group Net Debt
Group Net Debt Net Debt increased $14.9m during the half due to investments increasing by $13.7m. All amounts in $m’s Automotive SFC Syndicated Gosh Total Total The Net Debt Leather Investments Investment Capital 31 Dec 30 Jun increase of $14.9m Properties 2018 2018 includes: • Increase in Type of D
Slide 6: Dividends
Dividends • The Board has declared an interim dividend of 30¢ per share fully franked which is double the prior corresponding period, payable on 15 March 2019. Shareholder Dividends $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- FY 2011 FY 2012 FY 2013 FY2014 FY 2015 FY 2016 FY 2017
Slide 7: Automotive Leather
Automotive Leather a Schaffer Corporation Limited
Slide 8: Automotive Leather
Automotive Leather Half-Year Ending ($m’s) Dec-2018 Dec-2017 Revenue 91.0 105.0 Segment NPAT* 12.2 10.9 * NPAT excludes 16.83% minority interests. Volumes decreased – tougher global automotive conditions Revenue and NPAT include a significant positive FX impact compared to H1 FY18. 5% deprecia
Slide 9: Schaffer Building Materials
Schaffer Building Materials 9
Slide 10: Building Materials
Building Materials Half-Year Ending ($m’s) Dec-2018 Dec-2017 Revenue – continuing operations 11.6 8.2 Segment Underlying NPAT – continuing operations 0.4 (0.6)* * Dec-2017 Underlying NPAT excludes (1) $4.4m net profit after tax on sale of the Building Products divisions; and (2) $3.2m impairment of
Slide 11: Group Investments
Group Investments Company Owned Property Lot 701, 702 & 703 Jandakot Rd, Jandakot, WA Syndicated Property Burlington Hotel, Vermont, USA Parks Centre, Bunbury, WA Pacific Hotel, Brisbane, QLD 11
Slide 12: Group Investments
Group Investments Net Equity Net Book Market Value Equity Cost1 Value Value Pre-Tax2 Value3 ($m) ($m) ($m) ($m) ($m) Property Used by SFC Operations $6.6 $6.6 $11.4 $11.4 $9.9 Rental Properties $25.4 $26.1 $61.3 $38.2 $27.4 Development Sites $9.2 $9.0 $43.1 $42.1 $32.0 Total Property $41.2 $41.7 $11
Slide 13: Group Investments - Property Portfolio
Group Investments - Property Portfolio SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used by SFC operations
Slide 14: Lots 701, 702 & 703 Jandakot Road
Lots 701, 702 & 703 Jandakot Road A strategic 54.4 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 38.8 ha – A Scheme Amendment increased the scope of Additional Uses to allow Warehouses, Showrooms, Storage, Masonry Production and Nurseries. This Additional Us
Slide 15: Bennett Avenue, North Coogee
Bennett Avenue, North Coogee Land Area: 2.1 hectares. Zoned high density residential from industrial. Site can accommodate approximately 175 units. 15
Slide 16: SFC Investments
SFC Investments Half-Year Ending ($m’s) Dec-2018 Dec-2017 Revenue 3.1 2.3 Segment NPAT 0.8 0.4 Unrealised gains from the revaluation of equity instruments ~$0.3m after tax. New Investments Cash plus term deposits (short-term) - $22.4m SFC US structure established as an investment vehicle for U
Slide 17: Gosh Capital Investments
Gosh Capital Investments Half-Year Ending ($m’s) Dec-2018 Dec-2017 Revenue 0.7 0.7 Segment NPAT* 0.6 0.2 * NPAT excludes 16.83% minority interests Unrealised gains from the revaluation of equity instruments ~$0.3m after tax. Realised profit on the sale of syndicated property (Inghams, SA) • IRR
Slide 18: Group Outlook – FY19
Group Outlook – FY19 The Group FY19 Underlying full-year NPAT is expected to be similar to FY18, subject to the uncertainties listed below. Uncertainty is created by: ‒ Trade war between China and the US ‒ Unknown impact from Brexit ‒ Economic slowdown in China, specifically automotive industry,
Slide 19: Non-IFRS Financial Information
Non-IFRS Financial Information Underlying Profit Reconciliation ($000’s) Half-Year Ending (all items after tax and minority interests) Dec-18 Dec-17 NPAT 12,674 11,249 Profit on sale of Building Products division - (4,393) Impairment of assets - 3,150 Non-recurring costs 208 144 Profit on disposal o
Slide 20: 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