Slide 1: Capral Aluminium
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Slide 2: 2005 First Half Result
CAPRAL ALUMINIUM LIMITED 2005 First Half Result Key reasons for the first half trading loss: * Capacity constraints following Minto closure and during Bremer ramp up - customers on allocation and volumes lower * High manufacturing costs at Bremer ALUMINIUM
Slide 3: Status of Bremer
CAPRAL ALUMINIUM LIMITED Status of Bremer All elements of the Bremer plant are now working, but: * Automation not fully operational in some areas, particularly product handling and packing * Some bottlenecks to be addressed, eg ageing ovens capacity * Production volume at Bremer is low while Eagle F
Slide 4: Restructuring
CAPRAL ALUMINIUM LIMITED Restructuring * Actions taken - Transfer of Shared Services to Bremer achieved - Closure of Queensland distribution centre and transfer to Bremer - Extended Eagle Farm operation to December 2005 to meet market/customer needs - Milperra paintlines to continue through to last
Slide 5: Other Operations
CAPRAL ALUMINIUM LIMITED Other Operations * Canning Vale (WA) - WA market is strong - Good market position - Profitable and made a good contribution * Campbellfield (VIC) - Lower conversion costs - Increased productivity - Further improvement required to get to investment case CArraL \
Slide 6: Financial Position
CAPRAL ALUMINIUM LIMITED Financial Position « Gearing (debt: debt & equity) is 26% at 30 June following the rights issue in April 2005 ¢ Working Capital : Sales ratio at June of 15.8% ALUMINIUM
Slide 7: Adoption of AIFRS
CAPRAL ALUMINIUM LIMITED Adoption of AIFRS The translation to the Australian equivalent to IFRS caused the following change to retained earnings at 31 December 2004 $m Foreign currency translation reserve 3.0 Retirement benefit assets 1.9 Asset impairment (Milperra & Yennora) (7.4) Tax expense 2.7 O
Slide 8: Outlook for Second Half
CAPRAL ALUMINIUM LIMITED Outlook for Second Half * Customers slow to return because they have other supply arrangements in place ¢ Manufacturing cost at Bremer continues to be high * Campbelifield and Canning Vale will continue solid performance ¢ Market is weaker with downturn in housing ¢ Import v
Slide 9: Crane Aluminium acquisition
CAPRAL ALUMINIUM LIMITED Crane Aluminium acquisition Rationale * Good businesses, strong position in distribution ¢ Lifts market presence significantly, better positioned to compete with imports * Substantial synergies * Complementary capabilities — business model, facilities and people ii CAPRAL AL
Slide 10: Crane Aluminium acquisition
CAPRAL ALUMINIUM LIMITED Crane Aluminium acquisition Key facts « Purchase price approximately $124 million * Trading results reported by Crane Group Limited: June 2005 Year June 2004 Year $m $m Sales 225.9 219.9 EBITDA 17.9 22.9 EBITA 13.8 19.4 Status * Satisfied due diligence and signed sale and pu
Slide 11: Crane Aluminium's businesses
CAPRAL ALUMINIUM LIMITED Crane Aluminium’s businesses 3 businesses: - Crane Aluminium Extrusions — Penrith and Angaston plants — second largest manufacturer of aluminium extrusions in Australia - Crane Aluminium Systems — major distributor and marketer of custom designed aluminium extrusions and com
Slide 12: Key Synergy Opportunities
CAPRAL ALUMINIUM LIMITED Key Synergy Opportunities Manufacturing economies of scale ¢ Manufacturing best practice transfer * Consolidation of warehousing and freight ¢ Procurement scale * Overhead reduction * Common business systems Synergies of more than $10m p.a expected by 2008 ALUMINIUM
Slide 13: Capral /Crane Combination
CAPRAL ALUMINIUM LIMITED Capral /Crane Combination Crane brings..... Merged business gets... Capral brings..... > oe Canteen Loco macancttmat {including die technolo i ~~ {netueing cle technology manufacturing _ oe _ Cree a ae oN 4 Committed customer) High asset sere capacity SN volumes iligati ~_vo
Slide 14: Funding for Crane Aluminium and Next Months
CAPRAL ALUMINIUM LIMITED Funding for Crane Aluminium and Next 12 Months 1 ATE CAPRAL ALUMINIUM * Equity issue - 2 for 3 renounceable rights issue at $1.50 - Underwritten by GPG - Raises $113m (net of 3% underwriting fee) ¢ Additional debt facility through ANZ bank - Additional unsecured facility of
Slide 15: Earnings Summary Half Yearly
CAPRAL ALUMINIUM LIMITED Earnings Summary Half Yearly 000s H1 05 H2 04 H1 04 Revenue 157,846 | 187,341 169,496 EBITDA (13,237) | (21,336) | (13,939) D&A (6,054) | (5,650) (5,923) EBIT (19,291) | (26,986) | (19,862) Interest Expense (2,455) (331) (395) (Loss) Before Taxation (21,746) | (27,317) (20,2
Slide 16: Underlying Performance Half Yearly
CAPRAL ALUMINIUM LIMITED Underlying Performance Half Yearly * Impairment of Automotive & Paint line assets 000s Hi 05 H2 04 Hi 04 EBIT (19,291) | (26,986) ] (19,862) Significant non-operating items Profit on sale of PPE (30) (154) (555) Restructuring 1,028 9,387 10,654 Impairment* 0 5,459 0 Underlyi
Slide 17: Half Yearly EBIT comparison
CAPRAL ALUMINIUM LIMITED Half Yearly EBIT comparison 000s Underlying EBIT H2 04 (12,294) Underlying EBIT H1 05 (18,293) EBIT Variance (5,999) Volume/Mix (3,173) Bremer Manufacturing Variance (6,146) Overhead Reduction & Other Items 3,320 (5,999) ALUMINIUM
Slide 18: Overhead Analysis
CAPRAL ALUMINIUM LIMITED Overhead Analysis Warehouse Overheads Selling Expenses Information Technology Corporate Overheads Mn \ 12,908 14,055 14,781 3,648 4,366 4,342 6,101 5,898 5,426 27,647 30,274 30,251 ALUMINIUM
Slide 19: Balance Sheet June December June
CAPRAL ALUMINIUM LIMITED Balance Sheet 30 June 31 December June 2005 2004 2004 $000 $000 #039;000 Current assets 116,740 113,658 137,143 Current liabilities (89,185) (95,732) (78,489) 27,555 17,926 58,654 Non-current assets 175,478 175,919 208,411 Non-current liabilities (36,108) (36,952) (51,683) 139,
Slide 20: Cash Flow
CAPRAL ALUMINIUM LIMITED Cash Flow 000s H1 2008 H2 2004 H1 2004 Net Cash (Outflow) from Operating Activities (25,247) (14,428) (5,763) Cash Flows from Investing Activities Capital Expenditure (8,387) (15,161) (24,163) Proceeds from Sale of PP&E 17 1,155 2,297 Other Items 0 44 Net Cash (Outflow) from
Slide 21: Operating Working Capital Performance
CAPRAL ALUMINIUM LIMITED Operating Working Capital Performance ) A Current Assets Receivables Inventories Other Current Assets Current Liabilities Payables Other Provisions Operating Working Capital Movement — Year on Year (inci(dec) Revenue from operations WC % to Sales (annualised) 000's Hi 2005 H