Slide 1: Half-Year Results Presentation December 2018
For personal use only 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) For personal use only 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 − Kosi
Slide 3: Group Consolidated Financial Performance
Group Consolidated Financial Performance Revenue down but profitability up For personal use only • 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 cont
Slide 4: Cash Flow
Cash Flow Half-Year Ending ($m) Dec-2018 Jun-2018 Dec-2017 For personal use only (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
Slide 5: Group Net Debt
Group Net Debt Net Debt increased $14.9m during the half due to investments increasing by $13.7m. For personal use only 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: •
Slide 6: Dividends
Dividends For personal use only • 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 $- FY 2011 FY 2012 FY 2013 FY2014 FY
Slide 7: Automotive Leather
For personal use only 7 Automotive Leather
Slide 8: Automotive Leather
Automotive Leather For personal use only Half-Year Ending ($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
Slide 9: Schaffer Building Materials
Schaffer Building Materials For personal use only 9
Slide 10: Building Materials
Building Materials For personal use only 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) $4.4m net profit after tax on sale of the Building Products divisions; and (2
Slide 11: Group Investments
Group Investments For personal use only Company Owned Property Lot 701, 702 & 703 Jandakot Rd, Jandakot, WA Syndicated Property Burlington Hotel, Vermont, USA Parks Centre, Bunbury, WA Pacific Hotel, Brisbane, QLD 11
Slide 12: Group Investments
Group Investments For personal use only Net Equity Net Book Market Value Equity Cost1 Value Value Pre-Tax2 Value3 ($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 $32.0 Total Pr
Slide 13: Group Investments - Property Portfolio
Group Investments - Property Portfolio SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value Debt Gain Value For personal use only Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property
Slide 14: Lots 701, & Jandakot Road
Lots 701, 702 & 703 Jandakot Road For personal use only 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 Nurseri
Slide 15: Bennett Avenue, North Coogee
Bennett Avenue, North Coogee For personal use only Land Area: 2.1 hectares. Zoned high density residential from industrial. Site can accommodate approximately 175 units. 15
Slide 16: SFC Investments
SFC Investments For personal use only 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) - $22.4m SFC US structure established as an in
Slide 17: Gosh Capital Investments
Gosh Capital Investments For personal use only Half-Year Ending ($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 propert
Slide 18: Group Outlook – FY19
Group Outlook – FY19 For personal use only 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, specificall
Slide 19: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only 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 14
Slide 20: 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