Slide 1: ASX cover letter for 1H24 results presentation
21 February 2024 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 For personal use only Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - 1H24 RESULTS Please find attached SFC’s Investor Presentation for the first half of the 2024 financia
Slide 2: FY24 Half-Year Results Presentation
For personal use only FY24 Half-Year Results Presentation DECEMBER 2023 Creating shareholder value through the efficient operation of our businesses and long-term growth in our investments
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Schaffer Corporation Limited ACN 008 675 689 (“The Company”). For personal use only This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation
Slide 4: Organisation Chart
Organisation Chart For personal use only MANUFACTURING GROUP INVESTMENTS JANDAKOT – SOUTH CONNECT AUTOMOTIVE LEATHER (83% OWNED) SFC (100%) AND GOSH CAPITAL (83%) JANDAKOT - ▪ Finishing ▪ Company Owned Property ▪ 100% Owned - Slovakia - Victoria, Australia ▪ Syndicated Investment Property ▪ A large
Slide 5: Group Consolidated Financial Performance
Group Consolidated Financial Performance Half-Year ending December ($m) 1H24 1H23 % Change 1H24 Statutory NPAT1 increased 72.1% to $8.8m (1H23: $5.1m) For personal use only Revenue $112.9 $83.5 35.3% Net Profit After Tax (NPAT)1 from: 1▪ Automotive Leather profitability increased to $7.8m, up Automo
Slide 6: Fully Franked Dividends
Fully Franked Dividends SFC is a consistent dividend payer For personal use only ▪ The Board has declared a fully franked interim dividend of $0.45 per share, for shareholders on record on 8 March 2024, payable on 15 March 2024. 90 90 90 80 70 45 45 45 35 45 40 25 25 26 30 45 45 45 45 45 13 13 14 30
Slide 7: Cash Generated
Cash Generated Half-Year ending December ($m) 1H24 1H23 1 Reduction of Automotive Leather working capital NPAT 8.8 5.1 ▪ Net working capital reduced by $12.6m primarily due to lower For personal use only Net unrealised pre-tax losses – Group Investments 2.4 4.2 hide inventory. Depreciation 4.3 4.0 2
Slide 8: Group Net Debt Overview ($m)
Group Net Debt Overview ($m) MANUFACTURING GROUP INVESTMENTS For personal use only Syndicated Automotive SFC Gosh Total Total All amounts in $m Jandakot Investment Leather Investments Capital Dec 23 Jun 23 Properties Type of Debt: Bank and other debt (20.8) (1.4) (12.2) (22.2) (7.8) (64.4) (71.4) Eq
Slide 9: Automotive Leather
Automotive Leather 1H24 revenues increased 48% to $93m (1H23: $63m), with NPAT1 increasing 64% to Half-Year ending December ($m) 1H24 1H23 $7.8m (1H23: $4.8m) as a major delayed program finally launched. For personal use only Revenue $92.8 $62.8 Cash flow generation from operations from Automotive L
Slide 10: Delta
Delta Summary Half-Year ending December ($m) 1H24 1H23 ▪ Delta increased NPAT to $2.2m (1H23: $0.3m): For personal use only Revenue $14.7 $14.0 o Improved operational efficiencies Segment NPAT $2.2 $0.3 o Prior year 1H23 margins and cashflows were impacted by design and engineering complexity on a l
Slide 11: Group Investments
Group Investments Pre-Tax Net Equity Value1 of $195.5m (June 23: $186.5m) or $14.40/share (June 23: $13.73/share) For personal use only ▪ Pre-Tax Net Equity Value1 has increased by $100m since FY17. 1. Pre-Tax Net Equity Value = market value less debt (including syndicated property debt) 2. All valu
Slide 12: Group Investments
Group Investments Half-Year ending December ($m) 1H24 1H23 ▪ Group Investments represents a growing proportion of the Group’s underlying assets For personal use only and valuation. Revenue $5.4 $6.6 Segment NPAT1,2 $0.5 $1.8 ▪ We continue to grow the division opportunistically with the objective of
Slide 13: Group Investments – Property
Group Investments – Property For personal use only Fugro Building West Perth, WA Hometown Cannington, WA Home Space, Tamworth, NSW 39 Dixon Rd Rockingham, WA Parks Centre Bunbury, WA Half-Year Results Presentation DECEMBER 2023 12
Slide 14: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate For personal use only Aerial View – January 2024 Half-Year Results Presentation DECEMBER 2023 13
Slide 15: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. For personal use only South Connect – Jandakot Logistics Estate is well located to benefit from the increased demand for logistic and “last-mile” warehousi
Slide 16: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate For personal use only Artist’s Impression; South Connect Logistics Estate, Jandakot Half-Year Results Presentation DECEMBER 2023 15
Slide 17: Group Outlook – 2H24
Group Outlook – 2H24 Outlook Risk Factors For personal use only While the current environment has many potential risks, our manufacturing ▪ Delayed program launches for Automotive Leather operations should continue to perform well during 2H24. ▪ Adverse currency volatility for Automotive Leather ▪ A
Slide 18: Non-IFRS Financial Information
Non-IFRS Financial Information Schaffer Corporation Limited results are reported under As at For personal use only Reconciliation of Net Debt ($000’s) International Financial Reporting Standards (IFRS) as issued by the Dec 2023 Jun 2023 International Accounting Standards Board. The Company Interest-
Slide 19: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value1,2 FY18 FY19 FY20 FY21 FY22 FY23 HY24 HY24 HY24 Pre-Tax Net Equity Value1,2 ($m) ($m) ($m) ($m) ($m) ($m) ($m) Per Share % of Portfolio Property: Used by SFC Operations $11.4 $11.4 $9.7 $9.7 $9.7 $10.1 $10.1 $0.74 5% For personal use only Jan
Slide 20: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Net Equity Land Size SFC SFC Share of Address Description Ownership Structure Lettable Area Market Value on Capital Value After (sqm) Ownership % Debt ($m) (sqm) ($m) Gain ($m) Tax ($m) Property used by SFC Operat
Slide 21: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Land Size SFC SFC Share of Net Equity Address Description Ownership Structure Lettable Area Market Value on Capital (sqm) Ownership % Debt ($m) Value ($m) (sqm) ($m) Gain ($m) For personal use only Development Sit