Schaffer Corporation Limited · ASX:SFC
Schaffer — Shareholder Meeting (November 2024)
23 slides from Schaffer's shareholder meeting presentation, Nov 13, 2024
Slide 1: Annual General Meeting Chairman's Address
13 November 2024 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 70th Annual General Meeting of Schaffer Corporation Limited. I would like to acknowledge that we meet on the homelands of the Noo
Slide 3: Annual Report and Chairman's Address
I also welcome Mr. Todd Schaffer of TJS Advisory, who manages our major property assets. Finally, I would like to introduce representatives from our company auditor, EY, Mr. Trevor Hammond and Mr. Jeff Van Gent. Schaffer Corporation’s Annual Report, including reports of the Directors and the Auditor
Slide 4: FY2024 Results
I am pleased to share the results for the 2024 financial year. The year was again a good year for Schaffer Corporation Limited (SFC), with strong performance from the Automotive Leather division and Delta. The Automotive Leather management team once again performed well, adjusting to various challen
Slide 5: Group Results
I would like to thank the management teams across our group and all our employees for all their hard work and performance during this financial year. Turning to the Group results. Group Revenue was up 23% to $226 million, reflecting a good year from both Automotive Leather and Delta. Automotive Leat
Slide 6: Cash Generation and Capital Allocation
The Group generated $49 million of cash, up from $6 million in the prior year. The strong cash generation was due to: • improved profitability from Automotive Leather and Delta; and • a $16 million reduction in Automotive leather’s working capital predominantly related to a reduction in excess hide
Slide 7: 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 21% per year. If an investor had invested $100,000 in Schaffer Corp
Slide 8: Automotive Leather Financial Performance
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. 7
Slide 9: Automotive Leather
Thank you, Chairman, and good morning, ladies and gentlemen. Automotive Leather Automotive Leather had a good year as sales volumes improved due to the launch of a new Mercedes program and a renewed Land Rover program reaching ‘normal’ volumes. Revenues increased 27% to $182 million (FY23: $143 mill
Slide 10: Automotive Leather 1H25 Update
Automotive Leather 1H25 update Our main luxury automotive customers in Europe have recently reported their quarterly results. Jaguar Land Rover reported good results, with weakness in Europe and China. Included in Land Rover’s six-month results was the impact from the flooding of a key aluminum supp
Slide 11: Automotive Leather Strategy
Thanks Ralph and good morning to everyone. Over the past few years Howe has successfully launched a range of vehicles with Jaguar Land Rover, Audi, Mercedes and Porsche which now positions us strongly in the premium end of the European OEM market where leather is valued and respected. Production cap
Slide 12: Porsche Macan Launch
One of our latest vehicle launches is the all-electric Macan from Porsche. Our first vehicle with Porsche and hopefully a step to becoming a more significant supplier to this prestigious brand. I now hand back to Ralph. 11
Slide 13: 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 14: Investment Portfolio Growth
Over the same seven-year period, pre-tax net equity value of Group Investments has increased by $115 million, after having paid out $76 million of fully franked dividends to our shareholders and having bought back around $9 million in shares. During the financial year, Group Investments contributed
Slide 15: South Connect Jandakot
Thank you, Ralph. Our Jandakot property - South Connect is a strategic property asset located between Kwinana Freeway and Roe Highway and 15 minutes south of the Perth CBD. The site has approximately 34 hectares of developable land with allowable uses including warehouses, showrooms, storage, masonr
Slide 16: Delta
Thank you, Todd. Delta Delta reported a strong profit of $4.5 million (FY23: $2.0 million) on higher revenue of $31 million (FY23: $29 million) and improved operational efficiencies. Outlook for 1H25 Delta continues to operate positively in a challenging environment. Government investment in large-s
Slide 17: Conclusion
Conclusion In conclusion, the economic and geopolitical conditions have many uncertainties and risks, including: • significantly higher interest rates with slower economic activity globally. This can impact, in particular, the automotive and construction industries. • volatile currency movements, •
Slide 18: Dividends
Dividends Subject to Board approval in February, we expect to continue to pay a 45c fully franked dividend. On behalf of the board, we would like to sincerely thank you, our shareholders. We also thank our management teams and employees for their hard work and perseverance. losing, I would like to s
Slide 19: First Item of Business
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 2024” The Corporations Act requires that the Annual Financial Report, including the Directors
Slide 20: Resolution 1
I would now like to move to Resolution 1, Re-election of Director “That Mrs Danielle Blain 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 8,247,496 proxies were received, which represents 61% of the Company’s
Slide 21: Resolution 2
I would now like to move to Resolution 2, Re-election of Director “That Mr Anton Mayer, who retires in accordance with the Company’s constitution and, being eligible for re-election, be re-elected as a Director” A total of 8,247,496 proxies were received. Proxies submitted for Resolution 2 are shown
Slide 22: Resolution 3
I would now like to move to Resolution 3, Remuneration Report “That the Remuneration Report for the period ended 30 June 2024 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 23: Meeting Closed
As there is no further business to be transacted and the formal proceedings have been completed, I declare the meeting closed. 22