Slide 1: Full Year Results Presentation June 2017
Full Year Results Presentation June 2017 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) SCHAFFER CORPORATION LIMITED Automotive Leather Division Property Division Building Materials Division Howe (83% Owned) Syndicated Investment Property Delta • Precast Concrete – Herne Hill, WA • Finishing − Kosicé– Slovakia − Thomastown, Victoria, Australia Compa
Slide 3: Financial Performance
Financial Performance Full year statutory profit improved 3% • Significant increase in Automotive Leather EBIT due to 16% volume increase and efficiencies. • Offset by reduced profit from the Building Materials division, including a $2.3 million non-cash impairment of assets. Full-Year Jun-20171 Jun
Slide 4: Cash Flow
Cash Flow Positive operating cash generation from reduced stock levels and increased EBIT Full-Year Ending ($m) Jun-17 Jun-16 (current) (pcp) EBIT less non recurring costs 15.2 11.2 Add depreciation 5.3 5.3 Loss/(profit) on disposal of assets 0.2 (5.7) The majority of Automotive Net interest paid (2
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $14.4 million during the year All amounts in $m’s Automotive Building Syndicate Gosh Total Total Leather Materials & Investment Capital 30 Jun 30 Jun Corporate Properties 2017 2016 Type of Debt: Bank debt – recourse - 1.5 2.3 - 3.8 4.3 Bank debt - non-recourse
Slide 6: Assets
Assets Market value of Group Net Tangible Assets $7.83/share (pcp $7.68/share) Property & Investments Building Property used Syndicate Total Total Automotive Materials & by SFC Investment Gosh Property & 30 Jun Leather1 Corporate Operations Properties Capital1 Investments 2017 Net assets (Book) ($m)
Slide 7: Automotive Leather
Automotive Leather FEO WE THE PROMISE OF AUSTRALIA'S BEST LEATHER. of Schaffer Corporation Limited
Slide 8: Automotive Leather Results
Automotive Leather Results Full-Year Ending ($m’s) June-2017 June-2016 % Change Revenue 170.9 155.1 10% EBIT1 13.5 5.0 169% 1 Automotive Leather EBIT includes changes in the provision for the value of Employee Participation Units (EPUs). Revenues continued to grow, increasing 10% from the prior fi
Slide 9: Automotive Leather Outlook H1 FY18
Automotive Leather Outlook H1 FY18 • Volumes for the first half of 2018 are anticipated to be significantly higher than the volumes achieved in the first half of the 2017 financial year. • The operational efficiency improvements that benefited profits during the second half of the 2017 financial yea
Slide 10: Schaffer Building Materials
Schaffer Building Materials Building Products 10
Slide 11: Building Materials Results
Building Materials Results Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 38.0 51.8 (27%) Segment EBIT 0.0 2.9 Building Products (paving and walling) ◦ Negatively impacted by West Australian economic conditions. ◦ Remained profitable due to commercial projects in Western Australia and
Slide 12: Building Materials Outlook H1 FY18
Building Materials Outlook H1 FY18 Delta commenced FY18 with a significantly higher order bank than prior year after successfully winning a major contract. Revenues will increase and a return to profitability is expected, although margins remain under pressure. Building Products also commences t
Slide 13: Property Portfolio (Total Group)
Property Portfolio (Total Group) 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) ($m) Property used by SFC operations 218
Slide 14: Property
Property Lot 701, 702 & 703 Jandakot Road A strategic 54.4 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 6.2 ha Urbanstone manufacturing (Lot 701) • 5.8 ha special use Nursery and Showrooms (Lot 702 & part Lot 703) • 42.4ha currently zoned rural (including 1
Slide 15: Investment Property (Syndicates)
Investment Property (Syndicates) IBM Building, Hay St, West Perth, WA Hometown Cannington, WA Parks Centre, Bunbury, WA 15
Slide 16: Investment Property (Syndicates) Results & Outlook
Investment Property (Syndicates) Results & Outlook Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 4.7 5.4 (13%) EBIT (excluding Property Sales) 1.9 2.3 (19%) Property Sales EBIT - 5.71 - Total Segment EBIT 1.9 8.1 1. June 2016 included the sale of SFC’s share in the 616 St Kilda Road syn
Slide 17: Gosh Capital
Gosh Capital 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares Zoned high density residential from industrial Site can accommodate approximately 175 units 17
Slide 18: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook Full-Year Ending ($m’s) Jun-2017 Jun-2016 % change Revenue 1.4 1.2 13% Segment EBIT excluding sale of property 0.8 0.7 10% Profit from sale of trust property1 0.1 0.2 - Segment EBIT 0.9 1.0 1. Share of trust profits from the sales of Space 207 (Dec-15) and Harbour Park
Slide 19: Group Outlook – H1 FY18 Summary Dividends
Group Outlook – H1 FY18 Summary For H1 FY18 compared to prior corresponding period we estimate: • A significant improvement in profit for Automotive Leather (based on current exchange rates) • A decrease in profit for Building Materials. • Similar profit for Investment Property. • Similar profit for
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information EBIT Reconciliation ($000’s) Full-Year Ending Schaffer Corporation Limited results are reported under Jun-17 Jun-16 International Financial Reporting Standards (IFRS) as issued Profit before income tax 10,057 7,542 by the International Accounting Standards Board. The C
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