Slide 1: Full Year Results Presentation June 2015
For personal use only Full Year Results Presentation June 2015 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: Value Drivers
Value Drivers For personal use only Share Price (June 30): $4.85 No of Shares: 14 million Market Cap: $67.9 million FY15 dividends per share: $0.25 fully franked SFC is a diversified company with four operating divisions Automotive Building Investment Gosh Leather1 Materials Property Capital1 Overhe
Slide 4: Financial Performance
Financial Performance For personal use only Group EBIT3 decreased due to: • Higher hide costs at Automotive Leather (magnified by a strengthening USD). • Higher costs associated with new leather program start-ups. • Weakening EUR negatively affecting our export revenue. Full-Year June-2015 June-2014
Slide 5: Cash Flow
Cash Flow For personal use only Full-Year Ending ($m) June-2015 June-2014 EBITDA 13.9 24.3 The Increase in Howe trade working capital represents the Less profit of disposal of assets - (0.7) build up of hide stock for the expected significant increase in Net interest paid (3.5) (3.4) Automotive Leat
Slide 6: Group Net Debt
Group Net Debt For personal use only Building Syndicate Total Total Automotive Materials & Investment Gosh 30 June 30 June All amounts in $m’s Leather Corporate Properties Capital 2015 2014 Type of Debt: Bank debt - recourse - 6.3 3.7 - 10.0 6.7 Bank debt - non-recourse 11.2 - 19.7 6.1 37.0 24.3 - G
Slide 7: Assets
Assets For personal use only Market value of Group Net Tangible Assets $7.52/share (pcp $7.14/share) Property Building Property Syndicate Total Automotive Materials & used by SFC Investment Gosh Total 30 June Leather1 Corporate Operations Properties Capital1 Property 2015 Net assets (Book) ($m) 34.5
Slide 8: Automotive Leather
For personal use only 8 Automotive Leather
Slide 9: Automotive Leather Results
Automotive Leather Results For personal use only $m June-2015 June-2014 % Change Revenue 101.1 103.5 (2%) Segment EBIT 6.3 15.21 (59%) 1. FY14 EBIT includes $4m abnormally high stock profits due to previous FX movements Sales volumes were 6% higher in the second half than the previous correspondin
Slide 10: Automotive Leather Key Points
Automotive Leather Key Points For personal use only Volumes are set to increase significantly due to numerous new programs, including new supply to Mercedes, which is currently ramping up slowly. A volume increase of a least 50% is expected over FY16 and FY17. The new Slovakian finishing and exp
Slide 11: Automotive Leather Outlook H1 FY16
Automotive Leather Outlook H1 FY16 For personal use only • Volumes for H1 FY16 are expected to be higher than first half last year based on awarded new programs. • The hide stock held at the start of FY16 was purchased at higher than current hide prices, and at an average of USD 0.80, so resulting h
Slide 12: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 12
Slide 13: Building Materials Results
Building Materials Results For personal use only $m June-2015 June-2014 % Change Revenue 49.1 52.0 (5%) Segment EBIT 1.4 1.8 (22%) Margin 2.8% 3.4% The continued impact from the decrease in resource sector related civil infrastructure developments in Western Australia have further decreased Buildi
Slide 14: Building Materials Key Points
Building Materials Key Points For personal use only Building Products Infrastructure projects in the commercial and government sectors are driving manufactured and natural stone sales. The residential sector spending is down and intense competition continues with both local competition and impor
Slide 15: Building Materials Outlook H1 FY16
Building Materials Outlook H1 FY16 For personal use only Order books are at higher levels than the start of FY15 which is positive. Prospective projects are numerous and encouraging. Intense competition and margin compression prevails. Further cost reductions have been, and will be, implemen
Slide 16: Property
Property For personal use only IBM Building, Hay St, West Perth, WA 616 St Kilda Rd, Melbourne, VIC Parks Centre, Bunbury, WA Hometown Cannington, WA 16
Slide 17: Property Portfolio (Total Group)
Property Portfolio (Total Group) For personal use only SFC Current SFC Share of Tax on Lettable SFC Share of Book Market Capital Net Equity Land Size Area Ownership Value Value* SFC Share of Gain Value Address Description Ownership Structure (sqm) (sqm) % ($m) ($m) Debt ($m) ($m) ($m) Property used
Slide 18: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook For personal use only $m June-2015 June-2014 % Change Revenue (excluding Property Sales) 6.0 6.1 (2%) EBIT (excluding Property Sales) 2.4 2.6 (8%) Occupancy improved to 95% (100% for retail) by the end of FY15, but rental incentives to achieve tha
Slide 19: 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 39 Dixon Road, Rockingham, WA Bulky goods retail with 3 tenants 19
Slide 20: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook For personal use only $m’s Jun-2015 Jun-2014 % Change Revenue 1.1 0.5 95% Segment EBIT (excluding insurance proceeds) 0.6 0.2 131% EBIT (excluding insurance proceeds) increased for FY15 due to the new rental and distribution income being earned from reinvested profit
Slide 21: Group Outlook – H1 FY16 Summary
Group Outlook – H1 FY16 Summary For H1 FY16 compared to prior corresponding period we estimate: For personal use only • Significant increase in Volume and Revenue for Automotive Leather, but similar profit to H1 FY15 (based on current exchange rates) • A modest increase in profit for Building Materi
Slide 22: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only EBITDA Reconciliation ($000’s) June 2015 June 2014 Profit before income tax 5,213 12,148 Finance income (102) (202) Finance costs 3,602 3,632 Impairment of Goodwill - 3,696 EBIT 8,713 19,274 Depreciation and amortisation 5,214 5,057 EBITDA 13,927
Slide 23: 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