Slide 1: Full-Year Results Presentation June 2019
Full-Year Results Presentation June 2019 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 Group Investments SFC Investments Gosh Capital (83% Owned) Automotive Leather (83% Owned) Company Owned Property Company Owned Property • Finishing • Jandakot Rd, Jandakot, WA • Bennett Ave, North Coogee − Kosicé – Slova
Slide 3: Group Consolidated Financial Performance
Group Consolidated Financial Performance Revenue down but profitability up • Automotive Leather revenue down 13% • Underlying Group profit up 6% reflecting operational efficiencies and FX gains • FY19 fully franked dividends up 56% Full-Year Ending June-2019 June-2018 Revenue from continuing operati
Slide 4: Cash Flow
Cash Flow Full-Year Ending ($m) June-2019 June-2018 NPAT 22.9 23.3 Depreciation and other non-cash items 3.5 4.8 Profit on sale of businesses and assets (0.3) (5.0) Non-cash impairment of assets 1.2 4.5 Payment of tax relating to increased profit in FY18 Add minority interests 4.8 4.9 Change in tax
Slide 5: Group Net Debt
Group Net Debt Net Debt increased $3.0m during FY19. The Net Debt increase of $3.0m Syndicated Total Total includes: Automotive SFC Investment Gosh 30 June 30 June All amounts in $m’s Leather Investments Properties Capital 2019 2018 • Increase in Type of Debt: Automotive Bank debt 4.0 - 19.1 6.1 29.
Slide 6: Dividends
Dividends The Board has declared a final dividend of 40¢ per share fully franked which is a 33% increase compared to the prior corresponding period. The full-year FY19 dividends of 70¢ per share is a 56% increase on FY18. Shareholder Dividends $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- FY 20
Slide 7: Total Shareholder Returns
Total Shareholder Returns 5-year SFC TSR and Share Prices 35.00% $16.00 $14.45 30.00% $14.00 29.15% 26.27% $12.00 25.00% Average Share Price $10.32 $10.00 16.64% Average 5-year TSR 20.00% 16.96% 12.54% $8.00 15.00% $6.00 $6.05 10.00% $5.49 $4.87 Average 5-year total $4.00 shareholder return 5.00% $2
Slide 8: Automotive Leather
Automotive Leather Schaffer Corporation Limited
Slide 9: Automotive Leather
Automotive Leather Full-Year Ending ($m’s) June-2019 June-2018 Revenue 176.3 203.4 Segment NPAT* 23.4 23.7 * NPAT excludes 16.83% minority interests. Volumes decreased – tougher global automotive conditions Revenue and NPAT include a significant positive FX gain compared to FY18. 4% depreciati
Slide 10: Schaffer Building Materials
Schaffer Building Materials 10
Slide 11: Building Materials
Building Materials Full-Year Ending ($m’s) June-2019 June-2018 Revenue – continuing operations 19.5 17.0 Segment Underlying NPAT – continuing operations 0.0 (1.0)* * June-2018 Underlying NPAT excludes (1) $4.4m net profit after tax on sale of the Building Products divisions; and (2) $3.2m impairment
Slide 12: Group Investments
Group Investments Company Owned Property Lots 701, 702 & 703 Jandakot Rd, Jandakot, WA Bennett Avenue, North Coogee, WA Syndicated Property Industrial Hotels Commercial 12
Slide 13: Group Investments
Group Investments Net Equity Net Book Market Value Equity Cost1 Value Value Pre-Tax2 Value3 ($m) ($m) ($m) ($m) ($m) Property Used by SFC Operations $6.5 $6.5 $11.4 $11.4 $9.9 Rental Properties $26.6 $27.9 $63.0 $39.9 $29.7 Development Sites $9.6 $9.5 $43.5 $42.5 $32.4 Total Property $42.7 $43.9 $11
Slide 14: Group Investments - Property Portfolio
Group Investments - Property Portfolio SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used by SFC operations
Slide 15: Lots 701, 702 & 703 Jandakot Road
Lots 701, 702 & 703 Jandakot Road A strategic 54.4ha property asset located between two freeways and 15 minutes south of the Perth CBD. • 38.8ha – A Scheme Amendment increased the scope of Additional Uses to allow Warehouses, Showrooms, Storage, Masonry Production and Nurseries. This Additional Use
Slide 16: Bennett Avenue, North Coogee
Bennett Avenue, North Coogee Land Area: 2.1 hectares. Zoned high density residential from industrial. Site can accommodate approximately 175 units. Land swap to square land completed 16
Slide 17: SFC Investments
SFC Investments Full-Year Ending ($m’s) June-2019 June-2018 Revenue 6.3 5.0 Segment NPAT 1.4 1.1 FY19 unrealised gains from the revaluation of equity investments ~$0.3m after tax Cash plus term deposits (short-term) at 30 June 2019 - $21.1m New Investments SFC US structure established as an in
Slide 18: Gosh Capital Investments
Gosh Capital Investments Full-Year Ending ($m’s) June-2019 June-2018 Revenue 1.3 1.4 Segment Underlying NPAT* 0.7 0.4 * Underlying NPAT excludes 16.83% minority interests and $0.7m after tax and minority interests for the impairment of Dixon Rd, Rockingham at June-2019 Unrealised gains from the re
Slide 19: Group Outlook – H1 FY20
Group Outlook – H1 FY20 The Group FY20 first-half revenue and profit is expected to be significantly lower than the prior corresponding period due to lower forecast volumes for Automotive Leather including the delayed start of a significant program. That program is now scheduled to commence in the
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information Underlying Profit Reconciliation ($000’s) Full-Year Ending (all items after tax and minority interests) June-2019 June-2018 NPAT 22,899 23,292 Profit on sale of Building Products division - (4,393) Impairment of assets 711 3,150 Non-recurring costs 248 473 Underlying P
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