Slide 1: ASX Market Announcements cover letter
23 February 2022 ASX Market Announcements ASX Limited 4th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, SCHAFFER CORPORATION LIMITED (ASX:SFC) INVESTOR PRESENTATION - HY22 RESULTS Please find attached SFC’s Investor Presentation for the first half of the 2022 financial year. The Board has
Slide 2: FY22 Half-Year Results Presentation
FY22 Half-Year Results Presentation December 2021 Creating long-term shareholder value through the efficient operation of our businesses and growth in our investments
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Schaffer Corporation Limited ACN 008 675 689 (“The Company”) for information purposes only. This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recomm
Slide 4: Organisation Chart
Organisation Chart MANUFACTURING GROUP INVESTMENTS AUTOMOTIVE LEATHER (83% OWNED) SFC (100%), GOSH CAPITAL (83%) § Finishing § Company Owned Property - Slovakia - Victoria, Australia § Syndicated Investment Property § Cutting § Equities - Slovakia - Listed - China - Internally Managed - Externally M
Slide 5: Group Consolidated Financial Performance
Group Consolidated Financial Performance • 1H22 Statutory NPAT1 of $6.5m § Automotive Leather NPAT of $7.5m, down $5.1m • NPAT1 $13.0m excluding non-cash, revaluation of HTG o Lower sale volumes relating to the global semiconductor chip • Interim fully franked dividend retained at 45¢ shortage § Del
Slide 6: Change in NPAT – 1H22 vs 1H21
Change in NPAT1 – 1H22 vs 1H21 NPAT1 excluding HTG revaluation decreased by $2.5m §1 Automotive Leather NPAT down $5.1m § $7.5m vs 1H21 of $12.6m +$1.1m +$0.4m 0.0 Impact of global semiconductor chip shortage +$2.5m -$0.1m §2 Delta NPAT down $1.3m § $0.3m loss vs 1H21 $1.0m profit -$5.1m -$6.5m Proj
Slide 7: Fully Franked Dividends
Fully Franked Dividends SFC is a consistent dividend payer 90 § The Board has declared an interim fully franked dividend of 45¢ per share, the same as previous corresponding period, payable on 11 80 March 2022 70 45 35 45c Interim 40 Dividend 45 26 30 25 25 25 23 21 20 45 45 45 13 13 13 14 11 12 10
Slide 8: Cash Generated
Cash Generated Half-Year ($m) 1H22 2H21 1H21 1 Increase in Automotive Leather Working Capital NPAT 6.5 15.7 23.1 Increase in Automotive Leather working capital during 1H22 due to higher inventory as the global Unrealised pre-tax gains – group investments 7.5 (2.1) (13.5) semiconductor chip shortage
Slide 9: Group Net Debt Increase ($m)
Group Net Debt Increase ($m) Net debt increased due to: § $6.2m dividend paid to SFC shareholders $7.0 § $10.4m new Group Investments § $7.0m Capex and Property Development $10.4 $20.5 o $3.6m for Jandakot Property o $1.4m for Delta $6.2 o $1.0m for Beachside o $0.5m for Automotive Leather $9.0 Net
Slide 10: Group Net Debt Overview ($m)
Group Net Debt Overview ($m) MANUFACTURING GROUP INVESTMENTS Syndicated All amounts in $m Automotive Gosh Total Total SFC Investments Investment Leather Capital Dec 21 Jun 21 Properties Type of Debt: Bank and other debt (9.0) (1.8)2 (22.1) (6.6) (39.5) (38.6) Equipment finance (6.3) - - - (6.3) (7.8
Slide 11: Automotive Leather
Automotive Leather Half-Year Ending December 1H22 1H21 First half impacted by semiconductor chip shortages and supply chain challenges § Revenue and profits negatively impacted by lower sales volumes relating to the Revenue ($m) $56.1 $88.8 semiconductor chip shortage. Management aligned the cost ba
Slide 12: Group Investments
Group Investments Half-Year Ending December 1H22 1H21 NPAT of $7.3m excluding HTG revaluation Revenue ($m) $8.7 $4.4 § Strong performance from most of our investments: Segment NPAT2 ($m) $0.8 $10.7 o NPAT of $2.5m on sale of various syndicated properties managed by Ascot Capital and proceeds of $6.9
Slide 13: Group Investments
Group Investments Pre-Tax Net Equity Value1 of $185.9 million or $13.54/share Pre-Tax Net Equity Value ($m) We continue to grow Group Investments, $191.7 investing opportunistically with the objective $185.9 of maximising shareholder value over the $20.6 $20.2 $162.6 medium and long-term $24.4 § Pre
Slide 14: Group Investments – Property
Group Investments – Property IBM Building West Perth, WA Hometown Cannington, WA Marriott Hotel New York, USA 6 Centro Ave Subiaco WA Torrens Road, St. Clair, SA 39 Dixon Rd Rockingham, WA The Residences at Lakeview Memphis, USA Home Space, Tamworth, NSW Seasons Hotel, Newman, WA DoubleTree Hilton V
Slide 15: Jandakot – South Connect
Jandakot – South Connect A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. § Approximate net developable area of 34ha. § Jandakot-South Connect is well located to benefit from the increased demand for showrooms and logistic warehousing driven by the
Slide 16: Jandakot – South Connect
Jandakot – South Connect Aerial View – February 2022 Half-Year Results Presentation DECEMBER 2021 15
Slide 17: North Coogee - Beachside
North Coogee - Beachside A 2.1 hectare property that has been zoned high density residential from industrial. § 2 / 3 storey single residential blocks settled to December 2021. § Stage 1: 27 of 28 sold § Stage 2: 4 of 24 sold § 11 blocks settled during the first half § $3.7m cash proceeds § $1.1m NP
Slide 18: Delta
Delta Half-Year Ending December 1H22 1H21 Summary Revenue ($m) $8.4 $8.9 § Delta incurred a loss of $0.3m Segment NPAT ($m) ($0.3) $1.0 o Delays, complexity and design changes associated with Bayswater Train Station - The project is now progressing more steadily. o Increased costs, including skilled
Slide 19: Group Outlook – FY22
Group Outlook – FY22 Outlook Risk Factors § Automotive Leather § Further impacts from Covid-19 include: o The chip shortage is gradually improving with our sales o A continuation of the semiconductor chip shortages and production volumes continuing to show creating Automotive Leather sales volatilit
Slide 20: Non-IFRS Financial Information
Non-IFRS Financial Information Reconciliation of Net Debt excluding lease liabilities for leases As at Schaffer Corporation Limited results are reported under previously classified as operating leases ($000’s) Dec 2021 Jun 2021 International Financial Reporting Standards (IFRS) as issued by the Inte
Slide 21: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value 1,2 Pre-Tax Net Equity Value 1,2 FY17 ($m) FY18 ($m) FY19 ($m) FY20 ($m) FY21 ($m) 1H22 ($m) 1H22 Per Share 1H22 % of Portfolio Highlights § The reduction in the: Property: Used by SFC Operations $19.6 $11.4 $11.4 $9.7 $9.7 $9.7 $0.71 5% o Pr
Slide 22: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current Lettable SFC SFC Share of Book SFC Share of SFC Share of Debt Notional Tax on Address Description Ownership Structure Land Size (sqm) Net Equity Value ($m) Area (sqm) Ownership % Value ($m) Market Value ($m) ($m) Capital Gain ($m) PROPERTY
Slide 23: Appendix II - Group Investments – Property Portfolio (continued)
Appendix II - Group Investments – Property Portfolio (continued) Current Lettable SFC SFC Share of Book SFC Share of SFC Share of Debt Notional Tax on Address Description Ownership Structure Land Size (sqm) Net Equity Value ($m) Area (sqm) Ownership % Value ($m) Market Value ($m) ($m) Capital Gain (