Slide 1: Half Year Results Presentation December 2017
Half Year Results Presentation December 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 Manufacturing Divisions Investment Divisions Property Portfolios Automotive Leather (83% Owned) Company Owned Property Gosh Capital (83% Owned) • Jandakot Rd, Jandakot, WA • Owned Property • Finishing • Campersic Rd, Herne Hill, WA (D
Slide 3: Financial Performance
Financial Performance Profit has significantly improved • Automotive Leather profit included significant FX gains reflected in both revenue and profit in addition to cost efficiencies from improved operational performance. • The half-year result included $4.4m after tax profit for the sale of the Bu
Slide 4: Cash Flow
Cash Flow Significant increase in operating cash due to profit performance, including FX gains. Proceeds from the divestment of the Building Products division - $17.4 million. Half-Year Ending ($m) Dec-2017 Jun-2017 (current) NPAT 11.2 3.5 Add depreciation 2.6 2.7 (Profit)/loss on sale of businesses
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $36.4 million during the first half. All amounts in $m’s Automotive SFC Syndicate Gosh Total Total Leather Corporate Investment Capital 31 Dec 30 Jun & Building Properties 2017 2017 Materials Type of Debt: The remaining Bank debt – recourse - - 2.4 - 2.4 3.8 $1
Slide 6: Group Net Cash/(Debt) Trend
Group Net Cash/(Debt) Trend 30.0 Net debt peaked to fund the 20.0 establishment of Automotive Leather’s new Slovakian 10.0 finishing and cutting facility that opened in FY16. 0.0 Since then, cash has been -10.0 -7.4 generated by: • Reduced Working Capital - Net Cash/(Debt) $m's -20.0 Automotive Leat
Slide 7: Automotive Leather
Automotive Leather a Schaffer Corporation Limited
Slide 8: Automotive Leather Results
Automotive Leather Results Half-Year Ending ($m’s) Dec-2017 Jun-2017 (current) Revenue 105.0 93.4 Segment NPAT* 10.9 6.4 * NPAT excludes 16.83% minority interests. Revenue and NPAT include a significant positive FX impact compared to H2 FY17. 9% appreciation of the EUR:USD. Approximately 60% of
Slide 9: Schaffer Building Materials
Schaffer Building Materials 9
Slide 10: Building Materials Results
Building Materials Results Half-Year Ending ($m’s) Dec-2017 Jun-2017 (current) Revenue – continuing operations 8.2 4.7 Segment Underlying* NPAT – continuing operations (0.6) (0.8) * Underlying NPAT excludes (1) $4.4m net profit after tax on sale of the Building Products divisions; and (2) $3.2m impa
Slide 11: Property Portfolio (Total Group)
Property Portfolio (Total Group) SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value* Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used by SFC operations 218
Slide 12: Investment Property
Investment Property Company Owned Property Lot 701, 702 & 703 Jandakot Rd, Jandakot, WA Syndicated Property Hometown Cannington, WA IBM Building, Hay St, West Perth, WA Parks Centre, Bunbury, WA 12
Slide 13: Investment Property Results & Outlook
Investment Property Results & Outlook Half-Year Ending ($m’s) Dec-2017 Jun-2017 (current) Revenue 2.3 2.4 Segment NPAT 0.5 0.3 Lot 701 Jandakot Road (Urbanstone factory) leased since the sale of the Urbanstone business on 22 November to Austral Masonry Holdings Pty Ltd as a triple net lease with a
Slide 14: Lots 701, 702 & 703 Jandakot Road
Lots 701, 702 & 703 Jandakot Road A strategic 54.4 ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 38.8 ha – The West Australian Minister for Planning approved a Scheme Amendment in November to increase the scope of Additional Uses to allow Warehouses, Showroo
Slide 15: Gosh Capital
Gosh Capital 10 Bennett Avenue, North Coogee, WA Land Area: 2.1 hectares. Zoned high density residential from industrial. Site can accommodate approximately 175 units. 15
Slide 16: Gosh Capital Results & Outlook
Gosh Capital Results & Outlook Half-Year Ending ($m’s) Dec-2017 Jun-2017 (current) Revenue 0.7 0.7 Segment NPAT* 0.2 0.2 * NPAT excludes 16.83% minority interests.. As an investment company, Gosh Capital actively evaluates investment opportunities to maximise the value of its assets and grow the p
Slide 17: SFC Capital
SFC Capital • Significant cash has been generated from the Automotive Leather division and the sale of the Building Products division. • SFC is forming a new investment vehicle with a focus on: • Global listed equity investments. • Global unlisted equity investments. • The division will comprise a c
Slide 18: Outlook – H2 FY18 Summary
Outlook – H2 FY18 Summary • For H2 FY18, compared to H1 FY18, we estimate: ‒ Similar profit for Automotive Leather (subject to exchange rate volatility). ‒ A reduction of the loss for the continuing operations of Building Materials. ‒ A modest increase in profit for Syndicate Investment Property. ‒
Slide 19: Non-IFRS Financial Information
Non-IFRS Financial Information Underlying Profit Reconciliation ($000’s) Full-Year Ending (all items after tax and minority interests) Dec-17 Jun-17 NPAT 11,249 3,484 Profit on sale of Building Products division (4,393) - Impairment of assets 3,150 1,629 Restructuring costs 144 121 Profit on sale of
Slide 20: 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