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17 November 2021

ASX Market Announcements

ASX Limited

th Floor, 20 Bridge Street

SYDNEY4 NSW 2000

Dear Sir/Madam,

SCHAFFER CORPORATION LIMITED (ASX:SFC) ANNUAL GENERAL MEETING

CHAIRMAN'S ADDRESS

Please find attached the Chairman's Address to the Annual General Meeting of SFC.

The Chairman has authorised the document to be released to the ASX.

For further information, please contact:

Mr Ralph Leib

Mr John Schaffer

Chairman

Chief Financial Officer

Schaffer Corporation Ltd

Schaffer Corporation Ltd

+61 8 9483 1201

+61 8 9483 1208

Yours sincerely

Company Secretary

Head Office: 1305 Hay Street, West Perth WA 6005 Postal Address: PO Box 770, West Perth WA 6872

Telephone: +61 8 9483 1222 Facsimile: +61 8 9481 0439 Website: www.schaffer.com.au

Schaffer Corporation Limited ABN 73 008 675 689

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2021 ANNUAL GENERAL MEETING

17 November 2021

Creating long-term shareholder value through the efficient operation of our businesses and growth in our investments

Good Morning, Ladies and Gentlemen.

My name is John Schaffer. I am the Chairman and Managing Director of Schaffer Corporation. It is my pleasure to welcome you all to the 67th Annual General Meeting of Schaffer Corporation Limited.

For the second year, we are webcasting the meeting due to Covid restrictions, which are making travel difficult, so I also welcome those shareholders who are attending virtually.

As it is now the nominated start time and we have a quorum, I declare today's Annual General Meeting open.

Firstly, I would like to present the Board of Directors and Senior Executives of the company to you beginning with my fellow Executive Director, Mr Anton Mayer. Mr Mayer is Executive Chairman of the Automotive Leather division and joins us today via videoconference from Florida.

Next, I would like to introduce the Company's Non-executive Directors: Mrs Danielle Blain AM;

Mr David Schwartz; and

Mr Michael Perrott AM.

I would also like to introduce our Chief Financial Officer, Mr Ralph Leib, and our Company Secretary, Mr Jason Cantwell.

Today, we are also joined virtually from Melbourne by our General Manager of Automotive Leather, Mr Dan Birks. And in person from Delta Corporation are our Executive Director, Mr Matt Perrella, and our General Manager, Mr Jason Walsh. I also welcome Mr Todd Schaffer of TJS Advisory, who manages our major property assets.

Finally, I would like to introduce our company auditor from EY, Mr Philip Teale. Mr Teale is rotating off our audit and being replaced by Mr Timothy Dachs, who will be our new audit partner.

1

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Schaffer Corporation's Annual Report, including reports of the Directors and the Auditors, for the year ended 30 June 2021 have been in members' hands for the statutory period.

Following my Chairman's address, I will invite questions and comments from members.

2

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I am pleased to share the results for the 2021 financial year with you, my fellow shareholders. The profit results are a record for the company. They were achieved despite the impacts of the Covid-19 pandemic on the global economy and our businesses.

For the Automotive Leather division, the first two months of the financial year started slowly. This was followed by a strong increase in sales volumes from our customers. The management team quickly adjusted the business to meet that increase.

Our investments experienced a volatile start to the year. They recovered strongly in November as global equity markets responded to the announcement of vaccines for Covid- 19.

We were also ready to take advantage of the changes in the domestic residential property market and bring our North Coogee development to market.

In the second half, a global semiconductor chip shortage emerged. That ongoing shortage is reducing production volumes of our OEMs and, as a result, is reducing the sales volumes of our Automotive Leather division. That impact continues in the 2022 financial year and is something we will discuss in detail later in the presentation.

3

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As mentioned, the Group achieved record profit for 2021.

In addition:

  • Revenues were up 26% to $196 million, primarily from Automotive Leather's strong recovery;
  • Net profit after tax (NPAT1) was up 65% to $39 million;
  • NPAT included $11 million after tax of unrealised non-cash net gains from the Group's equity investment portfolio;
  • For the first time, NPAT also included realised profit from the sale of residential land at North Coogee of $1.5 million after tax and minority interests;
  • Earnings per share were up 66% to $2.84 per share;
  • Annual dividends increased to 90 cents per share, a 12.5% increase compared to the prior year; and
  • Our Group Investments' net equity value before tax increased 18% to $192 million, up from $163 million last year.

4

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Schaffer Corporation Limited published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 04:16:04 UTC.