Slide 1: 2015 Half Year Results Presentation
2015 Half Year Results Presentation 19 AUGUST 2015 CAPRAL LIMITED 1 19 August 2015 CAPRAL HALF YEAR RESULTS
Slide 2: General Information
GENERAL INFORMATION Important Notes Footprint This presentation includes forward-looking estimates that are Darwin subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly. Cairns Trading EBITDA is the Statutory EBITDA adjusted for signifi- cant it
Slide 3: Overview of Results
OVERVIEW OF RESULTS SIX MONTHS TO JUNE 2015 • Trading EBITDA1 profit of $4.1m (2014: $2.6m) $4.1m Trading EBITDA profit in • EBITDA profit of $2.6m (2014: $2.1m) first half • Volumes up 1.5% on H1 2014 • Improved housing market driving volume increase $2.6m EBITDA • Metal cost increases (~25% higher
Slide 4: Financial Summary
FINANCIAL SUMMARY SIX MONTHS TO JUNE 2015 H1 H1 2015 2014 Sales Volumes - External (‘000 tonnes) 27.4 27.0 $m $m Sales Revenue 194.7 176.3 1 Trading EBITDA 4.1 2.6 LME and Premium Revaluation 2 (1.2) (0.3) 3 Abnormals (0.3) (0.2) EBITDA 2.6 2.1 Depreciation/Amortisation (3.5) (3.6) EBIT (0.9) (1.5)
Slide 5: Cash Flow Impacted by Higher Working Capital
CASH FLOW IMPACTED BY HIGHER WORKING CAPITAL $m $m 6 months to Jun 15 Jun 14 EBITDA 2.6 2.1 Working Capital increased Working Capital (10.0) (4.3) due to higher metal costs Finance Cost (0.6) (0.6) and sales revenue Equity Compensation Amortisation 0.3 0.3 Other 0.1 0.2 Operating Cash Flow (7.6) (2.
Slide 6: Leverage to Recovery in Residential Construction
LEVERAGE TO RECOVERY IN RESIDENTIAL CONSTRUCTION RECOVERY STARTED IN 2013 ANNUAL DWELLING COMMENCEMENTS AND ANTICIPATED TO CONTINUE THROUGH 2015 ‘000 225 207 MONTHLY DWELLING APPROVALS AND 198 200 QUARTERLY DWELLING COMMENCEMENTS MONTHLY UNITS 175 20,000 175 Underlying demand 169 19,000 155 BIS Shra
Slide 7: Metal Costs Continue to Impact Margins
METAL COSTS CONTINUE TO IMPACT MARGINS A$/kg Metal Cost (AUD - Quarterly Average) 3.00 • The rapid rise in metal costs has not been fully recovered in sales price 2.50 • Both LME and Premiums rose throughout 2014 • The weaker AUD added to the metal cost increase 2.00 • From Q1 2014 to Q1 2015: - LME
Slide 8: Aluminium Extrusion Demand Is Recovering from Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND IS RECOVERING FROM CYCLICAL LOW LEVELS ‘000 ALUMINIUM EXTRUSION MARKET Tonnes • Extrusion Market in 2015 is forecast to grow PA 200 but still ~13% below 2007 high 200 • The housing sector is strong with dwelling Forecast approvals exceeding 200,000 units for calendar 183.3
Slide 9: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES • Best aluminium product offer • Leading market share position • Long term customer relationships BUILD • • Experienced and committed workforce Commitment to continuous improvement and On our strengths customer service • National extrusion manufacturing footprint • National
Slide 10: Commission Confirms Continued Dumping from China
COMMISSION CONFIRMS CONTINUED DUMPING FROM CHINA • Case won in 2010 but the levels of duties imposed were low relative to The impact of the imposed Canada and USA anti-dumping measures has • Concerns around ongoing circumvention by importers are: been modest - Duty Avoidance - Duty Absorption/ Sales
Slide 11: Outlook
OUTLOOK • Housing commencements are forecast1 to be around 207,000 for the year to December 2015, up 5% on 2014. Detached housing up 1% and multi-residential up 9% • The weakening AUD is positive for local manufacturing and under normal circumstances should assist Capral’s competitive position • Add