Slide 1: Full Year Results Presentation June 2018
Full Year Results Presentation June 2018 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 Investments Property Other Automotive Leather (83% Owned) SFC Company Owned Property Equities • Finishing • Jandakot Rd, Jandakot, WA − Kosicé– Slovakia • Campersic Rd, Herne Hill, WA (Delta) − Thomastown, Victoria, Aust
Slide 3: Financial Performance
Financial Performance FY18 profit has significantly improved compared to FY17 • Automotive Leather profit included significant FX gains reflected in both revenue and profit in addition to cost efficiencies from improved operational performance. Full-Year Jun-2018 Jun-2017 Revenue from continuing ope
Slide 4: Cash Flow
Cash Flow Full-Year Ending ($m) Jun-2018 Jun-2017 Significant increase NPAT 23.3 5.9 in operating cash Add depreciation 4.8 5.3 consistent with profit performance, (Profit)/loss on sale of businesses and assets (5.0) 0.2 includes significant FX gains Add non-cash impairment of assets 4.5 2.3 Add min
Slide 5: Group Net Debt
Group Net Debt Net Debt has reduced by $42.5 million during FY18. All amounts in $m’s Automotive SFC Syndicate Gosh Total Total Leather Corporate Investment Capital 30 Jun 30 Jun & Building Properties 2018 2017 The remaining Materials $10.0m balance of Type of Debt: the Automotive Leather Government
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. - (1.3) Since then, cash has been (10.0) generated by: • Reduced Working Capital - Net Cash/(Debt) $m's (20.0) Automotive Lea
Slide 7: Dividends
Dividends • The Board has declared a final dividend of 30¢ per share fully franked, a 114% increase on prior corresponding period, payable on 14 September 2018. • The combined interim and final dividends total 45¢ which is a 73% increase on prior year. Shareholder Dividends $0.50 $0.45 $0.40 $0.35 $
Slide 8: Automotive Leather
Automotive Leather 8 a Schaffer Corporation Limited
Slide 9: Automotive Leather Results
Automotive Leather Results Full-Year Ending ($m’s) Jun-2018 Jun-2017 Revenue 203.4 170.9 Segment NPAT* 23.7 7.9 * NPAT excludes 16.83% minority interests. Revenue and NPAT include a significant positive FX impact compared to FY17. 9% appreciation of the average Euro versus US Dollar. Approximate
Slide 10: Schaffer Building Materials
Schaffer Building Materials 10
Slide 11: Building Materials Results
Building Materials Results Full-Year Ending ($m’s) Jun-2018 Jun-2017 Revenue – continuing operations 17.0 11.5 Segment Underlying* NPAT – continuing operations (1.0) (0.6) * Underlying NPAT excludes (1) $4.4m net profit after tax on sale of the Building Products divisions; and (2) $3.2m impairment o
Slide 12: Investments – Property & Other
Investments – Property & Other Company Owned Property Lot 701, 702 & 703 Jandakot Rd, Jandakot, WA Syndicated Property Hometown Cannington, WA Parks Centre, Bunbury, WA IBM Building, Hay St, West Perth, WA 12
Slide 13: Investments – Property and Other (Total Group)
Investments – Property and Other (Total Group) Net Book Market Equity Cost2 Value Value Value1 ($m) ($m) ($m) ($m) Property Used by SFC Operations $6.6 $6.6 $11.4 $10.0 Rental Properties $19.4 $23.6 $58.4 $24.5 Development Sites $8.0 $7.7 $41.9 $30.7 Total Property $34.0 $37.9 $111.7 $65.2 Equities
Slide 14: Investments - Property Portfolio (Total Group)
Investments - Property Portfolio (Total Group) SFC SFC SFC Tax on Net Current SFC Share of Share of Share of Capital Equity Ownership Land Lettable Area Ownership Book Value Market Value Debt Gain Value Address Description Structure Size (sqm) (sqm) % ($m) ($m) ($m) ($m) ($m) Property used by SFC op
Slide 15: Lots 701 & 702 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 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. 16
Slide 17: SFC Investments - Property & Other - Results
SFC Investments - Property & Other - Results Full-Year Ending ($m’s) Jun-2018 Jun-2017 Revenue 5.0 4.7 Segment NPAT 1.1 0.7 Lot 701 Jandakot Road (Urbanstone factory) leased since the sale of the Urbanstone business on 22 November to Austral Masonry Holdings Pty Ltd as a triple net lease with a 10
Slide 18: Gosh Capital - Results
Gosh Capital - Results Full-Year Ending ($m’s) Jun-2018 Jun-2017 Revenue 1.4 1.4 Segment NPAT* 0.4 0.4 * NPAT excludes 16.83% minority interests.. FY18 investments: ◦ $0.5 million in an industrial property unit trust ◦ $0.75 million in managed equities funds Market value of the investment portfo
Slide 19: Outlook – H1 FY19 Summary
Outlook – H1 FY19 Summary • For H1 FY19, compared to H1 FY18, we estimate: ‒ Similar profit for Automotive Leather (subject to exchange rate volatility). ‒ An improvement for the continuing operations of Building Materials. ‒ A modest increase in profit for SFC Property Investments ‒ Similar profit
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) Jun-18 Jun-17 NPAT 23,292 5,856 Profit on sale of Building Products division (4,393) - Impairment of assets 3,150 1,629 Non-recurring costs 473 770 Profit on sale of
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