Slide 1: ASX Market Announcements cover letter
14 February 2020 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - HY20 RESULTS Please find attached SFC’s Investor Presentation for the first half of the 2020 financial year. The Board has
Slide 2: Half-Year Results Presentation December 2019
Half-Year Results Presentation December 2019 Creating long-term shareholder value through the efficient operation and growth of our core businesses and investments
Slide 3: Organisation Chart (Core Businesses)
Organisation Chart (Core Businesses) SCHAFFER CORPORATION LIMITED 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 • Campersic Rd, Herne
Slide 4: Group Consolidated Financial Performance
Group Consolidated Financial Performance Half-Year Ending Dec-2019 Dec-2018 Revenue ($m) $92.7 $106.4 NPAT1 ($m) $13.9 $12.7 EPS (cents per share) 101.6 91.6 Ordinary dividends (fully franked) $0.45 $0.30 • Profit up 10% including unrealised non-cash net gains for the Group’s non-property investment
Slide 5: Cash Flow
Cash Flow Half-Year Ending ($m) Dec-2019 Jun-2019 Dec-2018 Capital expenditure included: (current) (pcp) • ~$4.1m for Automotive Leather NPAT 13.9 10.2 12.7 • $2.1m for Thomastown Finishing plant upgrade Unrealised gains – Group investments (4.7) (0.6) (0.4) • $2.0m for Slovakian plant and machinery
Slide 6: Group Net Debt
Group Net Debt Net Debt1 increased $20.0m during the half with investments increasing by $15.1m. Syndicated Total Total Automotive SFC Investment Gosh 31 Dec 30 June All amounts in $m’s Leather Investments Properties Capital 2019 2019 Type of Debt: Bank debt (15.7) - (21.4) (6.1) (43.2) (29.2) Equip
Slide 7: Dividends
Dividends The Board has declared an interim dividend of 45¢ per share fully franked which is a 50% increase compared to the prior corresponding period, payable on 13 March 2020. 6
Slide 8: Automotive Leather
Automotive Leather a Schaffer Corporation Limited
Slide 9: Automotive Leather
Automotive Leather Half-Year Ending ($m’s) Dec-2019 Dec-2018 Revenue 78.5 91.0 Segment NPAT* 11.0 12.2 * NPAT excludes 16.83% minority interests. Volumes decreased – tougher global automotive conditions Margins were positively impacted by cost management and continued improved process efficienci
Slide 10: Group Investments
Group Investments Company Owned Property Lots 701, 702 & 703 Jandakot Rd, Jandakot, WA Bennett Avenue, North Coogee, WA Syndicated Property Industrial Hotels Commercial 9
Slide 11: Investments
Group Investments Net Net Equity Equity Value Value Pre- Net Book Market Pre- Tax2 Equity Cost1 Value Value Tax2 Per Value3 ($m) ($m) ($m) ($m) share ($m) Property Used by SFC Operations $6.5 $6.5 $11.4 $11.4 $0.83 $9.9 Rental Properties $37.0 $36.5 $73.2 $47.7 $3.49 $37.0 Development Sites $10.1 $1
Slide 12: Investments - Property Portfolio
Group Investments - Property Portfolio SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) PROPERTY USED BY SFC OPERATIONS
Slide 13: Investments - Property Portfolio (continued)
Group Investments - Property Portfolio (continued) 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) ($m) DEVELOPMENT SITES L
Slide 14: Lots 701, 702 & 703 Jandakot Road
Lots 701, 702 & 703 Jandakot Road A strategic 54.4ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 38.8ha – A Scheme Amendment increased the scope of Additional Uses to allow Warehouses, Showrooms, Storage, Masonry Production and Nurseries. This Additional Use
Slide 15: Bennett Avenue, North Coogee
Bennett Avenue, North Coogee A 2.1 hectare property that has been zoned high density residential from industrial. • Residential subdivision plans produced. • Consulting with local government and planning authorities to implement planning guidelines that permit residential products relevant to the cu
Slide 16: Investments
Group Investments Half-Year Ending ($m’s) Dec-2019 Dec-2018 Revenue 4.1 3.8 Segment NPAT* 4.4 1.4 * NPAT excludes 16.83% minority interests for Gosh Capital investments Unrealised gains from the revaluation of equity investments - $3.2m after tax (H1 FY19 - $0.2m) Cash plus term deposits (short-
Slide 17: Schaffer Building Materials
Schaffer Building Materials 16
Slide 18: Building Materials
Building Materials Half-Year Ending ($m’s) Dec-2019 Dec-2018 Revenue 10.1 11.6 Segment NPAT (0.1) 0.3 Delta (precast concrete) remained close to break even. • Project schedule delays reduced the quantity of work and impacted profit performance. • Management is focused on maintaining efficient cost
Slide 19: Outlook – FY20
Group Outlook – FY20 FY20 Group profit is expected to be similar to FY19, subject to the risk factors mentioned below. SFC expects the Automotive Leather second half profit to be similar to the first half. Investments, other than directly held property, are revalued each period which could lea
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information Net Debt excluding interest-bearing liabilities for leases previously classified as operating leases ($000’s) As at Dec-2019 Jun-2019 Interest-bearing liabilities 78,026 38,242 less interest-bearing liabilities relating to leases previously classified as operating leas
Slide 21: 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