Schaffer Corporation Limited · ASX:SFC
Schaffer — Shareholder Meeting (November 2023)
29 slides from Schaffer's shareholder meeting presentation, Nov 15, 2023
Slide 1: Schaffer Corporation Limited Annual General Meeting Chairman's Address
15 November 2023 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS Please find attached the Chairman’s Address to the Annual General Meeting of SFC. The Chairman has author
Slide 2: Chairman's Address
Good morning, ladies and gentlemen. My name is John Schaffer. I am the Chairman and Managing Director of Schaffer Corporation. It is my pleasure to welcome you all to the 69th Annual General Meeting of Schaffer Corporation Limited and our 60th year listed on the Australian Securities Exchange. I wou
Slide 3: Board of Directors and Senior Executives
Next, I would like to introduce the Company’s Non-executive Directors: Mrs. Danielle Blain AM; Mr David Schwartz; and Mr Michael Perrott AM. I would also like to introduce our Chief Financial Officer, Mr Ralph Leib, and our Company Secretary, Mr Jason Cantwell. Today, we are also joined by our Gener
Slide 4: Chairman's Address
Schaffer Corporation’s Annual Report, including reports of the Directors and the Auditors, for the year ended 30 June 2023 have been in members’ hands for the statutory period. I will now commence my Chairman’s address after which I will invite questions and comments from members. 3
Slide 5: 2023 financial year results
I am pleased to share the results for the 2023 financial year with you, my fellow shareholders. The year was again a pleasing year for Schaffer Corporation Limited (SFC), although it was another year of many challenges, particularly for our Automotive Leather business. The Automotive Leather managem
Slide 6: Operating challenges and recovery
• Supply chains for over three years remained severely disrupted and became materially elongated adding further complexity in managing the business and working capital requirements. We have finally seen this return to normal. • More recently in March 2022 the Automotive Leather division experienced
Slide 7: Turning to the Group results
Turning to the Group results. The Group reported a statutory profit of $14 million. It is important to note that our profits include the financial impacts from unrealised, non-cash revaluations of our investments, in accordance with required accounting standards. These unrealised, non-cash gains or
Slide 8: Cash generation and capital allocation
The Group generated $6 million of cash, down from $36 million in the prior year. Automotive Leather consumed $21 million of cash, primarily to fund an increase in hide purchases in anticipation of the launch of the major renewed program which was delayed. During the year we: • Returned $14 million t
Slide 9: Total Shareholder Return
Total Shareholder Return (TSR*) measures the combined returns to shareholders from share price movements, the re-investment of dividends, and dividend imputation credits. Over the past 10 years, Schaffer Corporation’s TSR equates to 19% per year. If an investor had invested $100,000 in Schaffer Corp
Slide 10: Automotive Leather
I now hand over to Ralph Leib. Ralph is both Schaffer Corporation’s and Automotive Leather’s Chief Financial Officer and will review the financial performance of the Automotive Leather division. 9
Slide 11: Automotive Leather results
Thank you, Chairman, and good morning, ladies and gentlemen. Automotive Leather The Automotive Leather division had a difficult year as the division was impacted by multiple challenges. While revenues increased 5% to $143 million, profit was down 39% to $11.1 million. Our revenues, operating margins
Slide 12: Automotive Leather 1H24 update
The Automotive Leather division’s Management team took the necessary strategic actions to ensure that the business navigated the abovementioned challenges during the year and to ensure the business is ready for the 2024 financial year and onwards. olumes for the major renewed program are close to no
Slide 13: Future growth remains strong
We once again remind shareholders that, subject to various risks, the prospects of the Automotive Leather division remain strong, with future growth in Europe supported by renewed major programs, and new program launches with Mercedes Audi and Porsche. At this juncture, I now hand over to Dan Birks.
Slide 14: Automotive Leather
Automotive Leather Annual General Meeting NOVEMBER 2023 11 Thanks Ralph. Good morning to everyone. Again, it is a pleasure to be able to again attend the Schaffer AGM in person. I am proud to say that we are now viewed as a supply partner to the most exclusive car companies in Europe - namely: Jagua
Slide 15: Vehicle positioning
Automotive Leather Annual General Meeting NOVEMBER 2023 12 What is interesting is the clear difference in positioning of these vehicles – the Mercedes E Class is a traditional premium European sedan versus the versatile SU from China with a bundle of interesting features and strong interpretation of
Slide 16: Group Investments
Thank you, Dan. Group Investments Schaffer Corporation’s underlying valuation continues to be underpinned by tangible assets. Group Investments aims to maximise shareholder value over the medium and long- term by: • Continuing to grow our investment portfolio. • Accessing unique investment opportuni
Slide 17: Group Investments and fund launch
During the financial year, Group Investments contributed $3.2 million of profit. During the year we successfully launched the SFC Global Equity Fund for wholesale investors. The Fund ended the year up 7.6%3 net of fees with funds under management of $18.7m. At this juncture, I now hand over to Todd
Slide 18: Jandakot property - South Connect
Annual General Meeting NOVEMBER 2023 15 Thank you, Ralph. Our Jandakot property - South Connect Jandakot Logistics Estate is a strategic property asset that we are currently developing. It is located between Kwinana Freeway and Roe Highway and 15 minutes south of the Perth CBD. The site has approxim
Slide 19: Jandakot – South Connect – Logistics Estate
During the year, the pre-tax net equity value of Jandakot South Connect increased by $300k. The land value increased by $11.5 million to $77.5 million due to the investment in civil works that are due to be completed in the first half of this financial year. This was offset by $11.2 million debt dra
Slide 20: Delta
Thank you, Todd. Delta Delta produces precast and prestressed concrete products, predominantly for the Western Australian market. Delta returned to profitability, reporting profit of $2.0 million on higher revenue of $29 million. This compares to a loss of $0.6 million during the 2022 financial year
Slide 21: Overview of Delta's operations
Thanks John. Good morning everyone and thank you John for the opportunity to provide a brief overview of Delta’s operations. As you may recall from last year’s AGM, the State Government had embarked on a significant infrastructure program. Limited by capacity constraints due to delays on existing pr
Slide 22: Capacity expansion and reconfiguration
Delta Albany Ring Road Production Albany Ring Road Beams Annual General Meeting NOVEMBER 2023 21 I am pleased to report that the capacity expansion and reconfiguration program enabled Delta to supply an additional eight State Government infrastructure projects including the Morley Ellenbrook Line an
Slide 23: Conclusion
Conclusion In conclusion, the economic and geopolitical conditions have many uncertainties and risks, including: • significantly higher interest rates that may slow global demand, particularly in the automotive industry, • volatile currency movements, • higher energy prices, • inflationary cost pres
Slide 24: Dividends
Dividends Subject to Board approval in February, we expect to continue to pay a 45c fully franked dividend, the same as the last two halves. On behalf of the board, we would like to sincerely thank you to our shareholders. We also thank our management teams and employees for their hard work and pers
Slide 25: Questions and comments
I now invite questions or comments from members regarding the accounts and reports, and the management of the company. Members are also invited to ask our auditors questions relevant to the conduct of the audit and the preparation and content of the auditor’s report. 24
Slide 26: Annual financial statements and reports
I now turn to the first item of ordinary business in the Notice of Meeting “To receive and consider the annual financial statements and reports of the directors and the auditors for the period ended 30 June 2023” The Corporations Act requires that the Annual Financial Report, including the Directors
Slide 27: Resolution 1, Re-election of Director
I would now like to move to Resolution 1, Re-election of Director “That Mr Michael Perrott AM, who retires in accordance with the Company’s constitution and, being eligible for re-election, be re-elected as a Director” A total of 8,079,323 proxies were received, which represents 60% of the Company’s
Slide 28: Resolution 2, Remuneration Report
I would now like to move to Resolution 2, Remuneration Report “That the Remuneration Report for the period ended 30 June 2023 be adopted” Full details of the Company’s approach to remuneration for Directors and Senior Executives are included in our Remuneration Report contained within this year’s An
Slide 29: Conclusion of AGM
2023 Annual General Meeting Conclusion of AGM As there is no further business to be transacted and the formal proceedings have been completed, I declare the meeting closed. 28