Capral Limited · ASX:CAA
Capral — H1 2020 Earnings Presentation
21 slides from Capral's earnings presentation, Aug 21, 2020
Slide 1: 2020 Half Year Results Presentation
2020 Half Year Results Presentation 21 August 2020 Capral Limited (ASX:CAA) Level 4, 60 Phillip Street Parramatta NSW 2150 Approved and authorised by Capral’s Board of Directors
Slide 2: Australia's leading supplier of aluminium products and solutions
Australia's leading supplier of aluminium products and solutions 5 Plants 18 Distribution Centres Annual Extrusion Capacity 8 Extrusion Presses Australia-wide 65k Tonnes Annual Turnover Residential & Commercial Employs around 850 people ~$420 million Construction, Industrial 2
Slide 3: Agenda
AGENDA 1) 1H20 Highlights 2) 1H20 Financials 3) Strategy and Outlook 4) Questions 3
Slide 4: 1H20 Highlights
1H20 HIGHLIGHTS “Excellent result against a backdrop of a slowdown in building activity exacerbated by the COVID-19 pandemic” Tony Dragicevich, CEO & MD 4
Slide 5: 1H20 Performance Highlights
1H20 Performance Highlights ▪ Half year result well above prior period and ahead of guidance provided in the 2019 Annual Report − Trading EBITDA¹ of $10.2m (1H19: $2.4m) and EBITDA¹ of $17.0m (1H19: $3.4m) − Net profit after tax of $4.8m, a $13.2m improvement on 1H19 − Includes JobKeeper payments of
Slide 6: COVID Response Plan & Initiatives
COVID Response Plan & Initiatives Capral operated throughout the period of COVID restrictions. Initiatives implemented to safeguard employees and business, included: ▪ Strict range of protocols for hygiene, cleaning and social distancing ▪ Business travel curtailed and restrictions imposed on visito
Slide 7: Volume Breakdown
Volume Breakdown Channels to market Diverse industry exposure Volume Seasonality Tonnes (000’s) 40 17% 13% 35 30 VOLUME 46% VOLUME BY END 46% 25 BY CHANNEL MARKET 20 41% 37% 15 10 5 Rolled aluminium (via DCs) Industrial 0 Extruded aluminium (via DCs) Residential Building 1H15 2H15 1H16 2H16 1H17 2H1
Slide 8: Residential Market Slow But Forecasts Improving
Residential Market Slow But Forecasts Improving Annual Dwelling Commencements (‘000) 2020 Dwelling Commencements Forecasts 250 180 160 200 140 120 150 100 80 100 60 50 40 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 (F) Dec'19 Mar'20 May'20 Jun'20 Detached Housing Multi-Res Low Rise Multi-Res
Slide 9: Recent Capral Residential & Commercial Projects
Recent Capral Residential & Commercial Projects Gregory Hills Town Centre, NSW Qube Apartment Complex, Ryde NSW Architectural Battens Capral Architectural Glazing System Hindmarsh Island Boat House, SA Wilson Road, Blairgowrie VIC Schuco Window Systems Capral Architectural Glazing System 9
Slide 10: Industrial Sector Steady
Industrial Sector Steady Total Capral Industrial Volumes (Index 2012) New Truck and Van Builds¹ (‘000) 120 45 40 (2) 100 35 80 30 25 60 20 40 15 10 20 5 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020e 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Capral ¹ Source: TIC (Truck Industry Council
Slide 11: Recent Capral Industrial Projects
Recent Capral Industrial Projects NSW Distribution Centre Anzac Class Mast Upgrades Clenergy Solar Rail Austal WA Arends Trailers West Connex Project Animal Transport SA Alexandria NSW 11
Slide 12: 1H20 Financials
1H20 FINANCIALS “Strict cost saving measures combined with benefits flowing from Bremer Park rationalisation deliver strong earnings growth” Tertius Campbell, CFO 12
Slide 13: First Half Earnings Well Above Prior Period
First Half Earnings Well Above Prior Period 1H20 Volume on par with prior year 1H20 1H19 Sales revenue reduction driven by lower LME and securing import replacement Sales Volume ('000 tonnes) 26.8 26.8 volume at lower prices $m $m Margins continue to be under pressure due to imports and exce
Slide 14: Stable Financial Position Despite Pandemic
Stable Financial Position Despite Pandemic BALANCE SHEET JUN ’20 DEC ’19 $m $m Inventory consists of raw material (billet) and finished goods (rolled Current Assets product and extrusion). $0.9m increase due to higher finished goods Inventory 79.9 78.9 Trade Receivables 62.2 62.6 partly offset
Slide 15: Cash Generation Strong in First Half
Cash Generation Strong in First Half CASH FLOW 1H20 1H19 $m $m Working Capital reduction mainly driven by strong June debtor collections EBITDA 17.0 3.4 Working Capital 3.4 1.1 Operational interest charge slightly above 1H19 Finance Cost & Other (2.8) (2.5) Operating Cash Flow 17.6 2.0 Mai
Slide 16: Strategy and Outlook
STRATEGY AND OUTLOOK “Grow by strengthening Capral’s offer to market and continue operational optimisation to improve Capral’s long-term competitive position" Tony Dragicevich, CEO & MD BUILD OPTIMISE GROW On our strengths What we do For the future 16
Slide 17: Improve Productivity and Competitiveness
Improve Productivity and Competitiveness Manufacturing Focus on delivering cost savings from recent automation and capex projects, and streamlining operations post restructure Selective maintenance capital spend to ensure on-going plant reliability and efficiency Distribution Improvements in market
Slide 18: Key Industry Influencing Trends
Key Industry Influencing Trends Anti-Dumping Activities Aluminium Price ► Original case won in 2010 with low level duties imposed on Chinese imports ► Reforms to federal legislation and methodology ► Measures imposed against all Vietnam and some Malaysian sourced extrusions 2010 to 2019 ► Anti-circu
Slide 19: Outlook
OUTLOOK ▪ LME¹ is forecast to strengthen to pre-COVID levels through the remainder of 2020, after hitting four-year lows in May 2020 ▪ AUD fell sharply end of first quarter, recovering to pre-COVID levels by July ▪ Residential commencements forecast to have bottomed during the second quarter. Outloo
Slide 20: Strategic National Footprint
Strategic National Footprint Capral has a national footprint with a presence in every state and extrusion plants near five mainland capital cities Distribution centres 4 Bremer Park manufacturing plant Queensland 19 1 ► Capacity 30k tonnes ► Cairns AC Darwin ► 4 presses (1 moth balled) 2 Townsville
Slide 21: Questions
2020 Half Year Results Presentation QUESTIONS