Capral Limited · ASX:CAA
Capral — FY2014 Earnings Presentation
10 slides from Capral's earnings presentation, Feb 19, 2015
Slide 1: 2014 Full Year Results Presentation
2014 Full Year Results Presentation 19 February 2015 CAPRAL LIMITED 1This 19 February 2015 presentation CAPRAL FULL and assumptions includes forward-looking estimates that are subject to risks, uncertainties YEAR RESULTS outside of Capral’s control and should be viewed accordingly.
Slide 2: Overview of Results
OVERVIEW OF RESULTS FULL YEAR TO DECEMBER 2014 • Trading EBITDA1 profit of $9.2m (2013: $4.1m) • Volumes up 23% assisted by full year impact of OSA acquisition $9.2m Trading profit and improved housing market • Escalating metal costs in Q4 adversely impacted margins • Net Profit after Tax of $2.7m i
Slide 3: Financial Summary
FINANCIAL SUMMARY TWELVE MONTHS TO DECEMBER 2014 2014 2013 Sales Volumes - External (‘000 tonnes) 56.5 45.9 $m $m Sales Revenue 374.7 310.3 1 Trading EBITDA 9.2 4.1 Restructuring related cost (0.6) (4.3) LME Revaluation/ Forex 2 3.2 (1.0) 3 Acquisition Gain (less associated cost) - 1.8 Impairment of
Slide 4: Volume growth, OSA acquisition and cost savings offset margin erosion
VOLUME GROWTH, OSA ACQUISITION AND COST SAVINGS OFFSET MARGIN EROSION AND INFLATION IMPACTS TO DRIVE IMPROVED PROFIT Tr EBITDA $m 14 12 $2.9m ($2.9m) 10 $5.5m ($0.1m) $9.2m $4.5m ($1.3m) 8 ($3.5m) 6 $4.1m 4 2 0 Tr EBITDA Volume OSA Acquisition Margin Billet Premium Inflation Cost Management Other Tr
Slide 5: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG $m $m $m 12 months to Dec 14 Dec 13 Dec 12 EBITDA 11.0 (41.4) 2.1 Working Capital (1.2) 3.6 6.9 Acquisition Restructuring Costs (2.2) - - Finance Cost (1.2) (0.8) (0.5) Equity Compensation Amortisation 0.7 0.8 1.2 Improved Operating Cash Flow Impairment - 41.5 - Gain on
Slide 6: Leverage to Recovery in Residential Construction
LEVERAGE TO RECOVERY IN RESIDENTIAL CONSTRUCTION RECOVERY STARTED IN 2013 AND ANTICIPATED TO CONTINUE THROUGH 2015 ANNUAL DWELLING COMMENCEMENTS ‘000 200 186 188 MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS 175 175 Underlying demand 169 MONTHLY UNITS 155 152 18,000 BIS Shrapnel 15
Slide 7: Aluminium Extrusion Demand Is Recovering from Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND IS RECOVERING FROM CYCLICAL LOW LEVELS ‘000 • Extrusion Market in 2014 still ~16% below 2007 high Tonnes ALUMINIUM EXTRUSION MARKET PA • Recovery is ongoing in the housing sector with 200 200 dwelling approvals exceeding 200,000 units1 for Forecast calendar year 2014 183.3
Slide 8: 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 9: Substantial Additional Duties Imposed on the Largest Chinese Exporter
SUBSTANTIAL ADDITIONAL DUTIES IMPOSED ON THE LARGEST CHINESE EXPORTER Dumping & Countervailing Duties (Avg) • Case won in 2010 but the levels of duties The impact of the imposed imposed were low relative to Canada and USA 40% 30% anti-dumping measures to • Concerns around ongoing circumvention by da
Slide 10: Outlook
OUTLOOK • Housing commencements are forecast1 to be around 187,550 for calendar 2015, up 1% on the strong market in 2014 • The weakening AUD is a positive sign for local manufacturing and under normal circumstances should assist Capral’s competitive position • Substantial additional duties imposed o