Capral Limited · ASX:CAA
Capral — H1 2004 Earnings Presentation
34 slides from Capral's earnings presentation, August 2004
Slide 1: Capral Aluminium Limited Analyst Presentation
CAPRAL ALUMINIUM LIMITED Analyst Presentation August 2004 z Half Year Results - Half Year Ended 30 June 2004 z Bremer Park Update z Strategic Imperatives 1
Slide 2: Half Year Results
Half Year Results Half Year Ended 30 June 2004 2
Slide 3: Earnings Summary
Earnings Summary Half Year 30 June 2004 2004 2003 Revenue from operating activities 169,496 186,181 Revenue from outside the operating activities 1,790 483 Total Revenue 171,286 186,664 EBITDA (14,264) 2,856 D&A 6,341 6,203 EBIT (20,605) (3,347) Interest Expense (395) (350) (Loss)/Profit Before Taxa
Slide 4: Underlying Performance
Underlying Performance Half Year 30 June 2004 2004 2003 Better / (Worse) Revenue from operating activities * * Sales Revenue Australia - core business 151,991 168,186 (16,195) Other (primarily scrap sales) 17,505 17,995 (490) 169,496 186,181 (16,685) * LME movement year on year represents a shif t o
Slide 5: Half Year Sales Tonnes by Segment
Half Year 02 to 04 Sales Tonnes by Segment 30,000 25,000 20,000 15,000 10,000 5,000 0 Core Sales (Tonnes) 2002 29,415 2003 27,143 2004 25,169 5
Slide 6: Capral Monthly Tonnage
Capral Monthly Tonnage 6,000 5,000 4,000 2002 3,000 2003 2004 2,000 1,000 0 Jan Feb Mar Apr May Jun 6
Slide 7: Overhead Analysis
Overhead Analysis Half Year 30 June 2004 000's 2004 HY 2003 FY 2003 HY Warehouse Overheads 5,702 10,460 4,874 Selling Expenses 14,781 31,751 15,488 Information Technology 4,342 8,703 4,335 Corporate Overheads 5,426 13,006 6,017 Total Australia 30,251 63,920 30,714 7
Slide 8: Balance Sheet
Balance Sheet 000's Half Year 2004 HY 2003 FY 2003 HY 30 June Current Assets & Liabilities Cash 15,428 2,646 3,442 2004 Receivables 63,717 61,687 59,317 Inventories 44,037 48,132 49,390 Payables (63,079) (54,274) (42,909) Borrowings (3,757) (10,881) (40,058) Provisions (3,510) (3,656) (11,374) Other
Slide 9: Operating Working Capital Performance
Operating Working Capital Performance (excluding Borrowings, Cash & Taxation) 000's 2004 HY 2003 FY 2003 HY Current Assets Receivables 62,185 61,687 59,317 Inventories 44,037 48,132 49,390 Other Current Assets 4,139 4,313 2,484 Current Liabilites Payables (61,547) (54,274) (42,909) Other Provisions
Slide 10: Cash Flow
Cash Flow Half Year 30 June 2004 000's 2004 HY 2003 FY 2003 HY Net Cash Inflow /(Outflow) from Operating Activities (5,763) (2,652) (4,633) Cash Flows from Investing Activities Capital Expenditure (24,163) (64,977) (28,632) Proceeds from Sale of PP&E 2,297 19,720 514 Payments for Intangible Assets/
Slide 11: Project Expenditure
Project Expenditure Bremer Park Budget Spent To Spend Bremer Park $91.4m $81.9m $9.5m Capex Operational $3.4m $1.1m $2.3m Readiness Project 11
Slide 12: Restructuring
Restructuring 2004 HY 2004 FY 2003 HY Actual Forecast Actual Redundancies $8.1m $11.0m $0.0m Restructuring $2.6m $3.0m $0.7m Costs 12
Slide 13: Renounceable Rights Issue
Renounceable Rights Issue June 2004 Highlights • 16,219,446 shares allotted @ $2.00 • 13,929,052 shares(being approximately 85.9%) were accepted • 2,290,394 taken up by GPG – as underwriter Summary Shares issued @ $2.00 $32.4m Costs associated with issue $0.7m Total share capital $31.7m 13
Slide 14: Bremer Park Update
Bremer Park Update ALUMINIUM
Slide 15: Bremer Park Aerial June 2004
Bremer Park Aerial ~ 30 June 2004 15
Slide 16: View of Bremer Park from Warrego Highway
View of Bremer Park from Warrago Highway 16
Slide 17: The side/rear view of Bremer Park
The side/rear view of Bremer Park Loading area Despatch 17
Slide 18: Bremer Park rollout plan: Extrusion
What is the current Bremer Park rollout plan? Extrusion The first new press (8”) became operational on Monday 16th August. A second 7” press (old QL2) will commence on Monday 30th August. Once these two presses are extruding quality product at a rate that exceeds the current Minto presses, MT1 and M
Slide 19: First Extrusion from New Press
First Extrusion from New Press ~ 16th August 2004 ~ 19
Slide 20: Bremer Park rollout plan: Paint
What is the current Bremer Park rollout plan? Paint Bremer Park will have two state of the art vertical paint lines. The first will be operational on 13th September with the second to follow on 18th October. 20
Slide 21: Bremer Park rollout plan: Anodising
What is the current Bremer Park rollout plan? Anodising The Bremer Park anodising facility comes on line week commencing 8th November 21
Slide 22: Bremer Park rollout plan: Warehouse
What is the current Bremer Park rollout plan? Warehouse The new Bremer Park automated warehouse will be in operation during December 22
Slide 23: Plant capabilities: Dies
What are the plant capabilities? Dies: We have a die warehouse with an automatic retrieval and put away process. This warehouse holds 18,000 dies with room to expand to 27,000 dies. 23
Slide 24: Plant capabilities: Extrusion
What are the plant capabilities? Extrusion: Capacity of 59,000 tonnes per year with 4 presses. We have two additional press bays that allows us to expand our capacity to 88,000 tonnes. 24
Slide 25: Plant capabilities: Paint
What are the plant capabilities? Paint: Capacity of 47,000 tonnes per year. Wood grain and marble finishing coming on line in 2005. 25
Slide 26: Plant capabilities: Anodising
What are the plant capabilities? Anodising: Capacity of 8,700 tonnes per year with capability to add an additional tank, increasing capacity to 12,000 tonnes per year. • Standard finishes • Bright • Interference colour range comes on line in 2005 26
Slide 27: Plant capabilities: Packing
What are the plant capabilities? Packing: Packing is an automated process designed to give major protection to our product Extrusion will be sub bundled then fed through a spiral wrapper before being packed in to a master bundle. The automated process ensures tight, secure bundles reducing risk of d
Slide 28: Plant capabilities: Warehouse
What are the plant capabilities? Warehouse: The automated Bremer warehouse has holding capacity for 2,280 sku’s There is capability to expand this warehouse to 6,840 sku’s 28
Slide 29: The Hub
The Hub t . 8. e eS © th 7
Slide 30: Strategic Initiatives
Strategic Initiatives ALUMINIUM
Slide 31: Critical Success Factors
Critical Success Factors z That Bremer Park is commissioned on schedule and achieves the projected efficiency levels. z That the reconfiguration of the supply chain and warehouses provides the service and cost outcomes. z That Capral develops a flat products value adding centre in each Capital City.
Slide 32: Capral Through Three Phases
Capral Through Three Phases DOING THE BASICS EXPANDING THE BASE GROWTH • Overhead Reduction • Stage 2 Bremer Park • Growth - Step Out • Warehouse Automation Opportunity Consolidation • 40% Improvement in • Customer Volume Relationship • Industrial Products Management (CRM) Value Adding • Advanced Pl
Slide 33: Capral's Model for Success
Capral’s Model for Success Capral Capral Capable Capral Capral Satisfied Supporting + People + Excellent = Customer Shareholder Operation z Reward with strong z Small company z Low cost. z Gets value dividend and share mindset. z Innovators and users z Exceptional service. growth. z Low overhead. of
Slide 34: Capral Aluminium
CAPRAL ALUMINIUM