Slide 1: Half Year Results Presentation December 2012
For personal use only Half Year Results Presentation December 2012 Creating long-term shareholder value through the efficient operation and growth of our core businesses
Slide 2: Organisation Chart (Core Businesses)
Organisation Chart (Core Businesses) For personal use only SCHAFFER CORPORATION LIMITED Building Materials Division Property Division Automotive Leather Division Delta Syndicated Investment Property Howe • Precast concrete – Herne Hill, WA • Finishing – Thomastown, Victoria • Tannery – Rosedale, Vic
Slide 3: Summary
Summary For personal use only Half-year profits up for the second consecutive year • Building Materials profit up strongly. • Automotive Leather volumes, revenue and profits lower as expected. • $2.0m profit after tax related to ongoing insurance claim for loss of building at 10 Bennett Avenue, Nort
Slide 4: Financial Performance
Financial Performance For personal use only Statutory Profits increased by 19% (prior corresponding period: 118% increase) Half-Year Dec-2012 1 Dec-2011 2 % Change Revenue ($m) $72.3 $81.0 (11%) EBITDA ($m) 3 $12.0 $11.1 8% EBIT ($m) 4 $9.5 $8.5 12% NPAT ($m) $5.3 $4.4 19% EPS $0.38 $0.32 19% Ordina
Slide 5: Cash Flow
Cash Flow Continued strong cash flow from operations used to reduce net debt For personal use only Half-Year Ending ($m) Dec-2012 Dec-2011 EBITDA 12.0 11.1 Less profit of disposal of assets / non-cash items (3.5) - Net interest paid (1.7) (1.8) Tax paid (0.3) (2.3) Change in Howe trade working capit
Slide 6: Group Net Debt
Group Net Debt Building Materials and Corporate (100% recourse to SFC) is now cash positive For personal use only Building Syndicated Materials & Investment Automotive Total Total All amounts in $m’s Corporate Properties Leather 31 Dec 2012 31 Dec 2011 Type of Debt: Bank debt - recourse 3.7 3.9 - 7.
Slide 7: Group Net Debt
Group Net Debt Group Net debt reduction of $46.8m over the past 4 years For personal use only NET DEBT ($M) 90.0 80.4 80.0 70.0 67.9 34.0 60.0 54.5 25.4 50.0 Automotive Leather 17.0 45.5 33.6 40.0 Syndicate Property 26.2 20.5 30.0 18.8 Building Materials and Corp. 26.2 25.5 20.0 Total 22.1 10.0 20.2
Slide 8: Assets
Assets For personal use only Market value of Group Net Tangible Assets $6.46/share (pcp $6.08/share) Building Syndicated Materials & Investment Automotive Total Corporate Properties Leather 31 Dec 2012 Net assets (Book) ($m) 45.6 (4.0) 21.2 62.7 Net assets (Market Value) ($m) 63.1 11.9 20.6 95.7 Ass
Slide 9: Schaffer Building Materials
Schaffer Building Materials For personal use only Building Products 9
Slide 10: Building Materials Results
Building Materials Results For personal use only $m’s Dec-2012 Dec-2011 % Change Revenue 33.7 28.9 17% Segment EBIT 4.7 2.8 66% Margin 14% 10% Resource and civil infrastructure developments in Western Australia have increased profits, particularly for Delta (precast prestressed concrete). Buildi
Slide 11: Automotive Leather
For personal use only 11 Automotive Leather
Slide 12: Automotive Leather Results
Automotive Leather Results For personal use only $m’s Dec-2012 Dec-2011 % Change Revenue 35.1 48.7 (28%) Segment EBIT 1.7 4.7 (63%) Margin 5% 10% 24% decrease in volumes due to program completion in the prior year and the Japan/China East China Sea islands dispute impacting the supply of our China
Slide 13: Property
Property For personal use only 616 St Kilda Rd, Melbourne IBM Building, Hay St, West Perth Hometown Cannington, WA 13
Slide 14: Property Results
Property Results For personal use only $m’s Dec-2012 Dec-2011 % Change Revenue 3.5 3.3 5% Segment EBIT (excl. disposals and insurance) 1.6 1.5 11% Net rental margin 46% 44% Profit on disposals - 0.42 Insurance proceeds less associated costs 3.41 - Segment EBIT 5.0 1.9 168% 1. Relates to fire damage
Slide 15: Property Portfolio
Property Portfolio For personal use only % Property Interest Total estimate of $47 million of unrealised property value before tax. Syndicated Investment Properties IBM Building, 1060 Hay St, West Perth, WA 22% • $27.5m from syndicated properties portfolio Océ House, 616 St Kilda Rd, Melbourne, VIC
Slide 16: Outlook – H2 FY13
Outlook – H2 FY13 For personal use only Positive indicators amongst prevailing uncertainty Automotive Leather • Volumes are expected to increase towards the end of FY13 and into FY14 based on awarded programs. • Currently, volumes are varying monthly because manufacturer production scheduling is dea
Slide 17: Outlook – H2 FY13 continued
Outlook – H2 FY13 continued For personal use only Building Materials • Strong order banks going into the second half of FY13. • Revenue and EBIT for the second half of FY13 are expected to be higher than the previous corresponding period. • Full year EBIT expected to be materially higher than prior
Slide 18: Outlook – H2 FY13 continued
Outlook – H2 FY13 continued For personal use only Overall • Underlying Profit, which excludes the impact of the ongoing fire damage claim, is expected to be higher in H2 FY13 than prior corresponding period. • With the expected increase in second half profit, the full year Underlying Profit is expec
Slide 19: Non-IFRS Financial Information
Non-IFRS Financial Information For personal use only Dec Dec Dec Dec EBITDA Reconciliation ($000’s) 2012 2011 Underlying Profit Reconciliation ($000’s) 2012 2011 Profit before income tax 7,846 6,735 NPAT 5,287 4,440 Finance income (190) (80) Profit on sale of investment property after tax - (301) Fi
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