Capral Limited · ASX:CAA
Capral — H1 2010 Earnings Presentation
12 slides from Capral's earnings presentation, Aug 24, 2010
Slide 1: 2010 Half Year Results Presentation
2010 Half Year Results Presentation 24th August 2010 CAPRAL LIMITED FIRST HALF 2010 RESULT
Slide 2: Agenda
AGENDA • Profile • Performance Highlights • Key Profit Drivers • Anti Dumping Update • Strategy & Business Development • Outlook 2 24TH AUGUST 2010 CAPRAL FIRST HALF 2010 RESULT
Slide 3: Capral Profile
CAPRAL PROFILE • Australia’s largest manufacturer and distributor of aluminium profiles. • A National footprint of world class extrusion plants. 8 operating presses with annual capacity of 75KT. • A network of 5 major distribution facilities, 6 regional centres and 12 metropolitan trade centres with
Slide 4: First Half Performance Highlights
FIRST HALF PERFORMANCE HIGHLIGHTS 1H10 1H09 % CHANGE Sales Volumes - External (‘000 tonnes) 28.5 24.8 15.0 $m $m Sales Revenue 204.5 177 15.5 EBITDA 8.5 (9.2) Depreciation (6.0) (8.5) 29.4 EBIT 2.5 (6.8) Interest (1.4) (6.8) 79.4 Tax - - - NPAT 1.1 (24.6) 4 24TH AUGUST 2010 CAPRAL FIRST HALF 2010 RE
Slide 5: Financials: A Positive Underlying Cash Flow
FINANCIALS: A Positive Underlying Cash Flow $m $m June 10 EBITDA 8.5 Working Capital (Normalised) (1.8) Interest Paid (1.4) Equity Compensation Amortisation 2.1 (1.1) Underlying Cash Flow 7.4 Less: Additional Log Stock* (10.3) Other 2.6 (7.7) Reported Net Operating Cash Flow (0.3) With a Robust Bala
Slide 6: Sales volumes of 28.5 kt were 15.0% higher than 1st half 2009
SALES VOLUMES OF 28.5 KT WERE 15.0% HIGHER THAN THE 1ST HALF 2009, BUT STILL NOT BACK TO PRE GLOBAL CRISIS LEVELS ‘000 Tonnes Sales Volumes 40 • Capral sales volumes grew by 15.0% year on year. • Stronger in the large fabricator customer group, 35 benefiting from the first home owner stimulus. +15%
Slide 7: Key Profit Drivers
KEY PROFIT DRIVERS TRADING EBITDA INCREASED BY $18.5m IN THE FIRST HALF 2010 COMPARED TO FIRST HALF 2009 $m 15 $14.2m $11.0m $2.1m 10 $0.4m $8.5m 5 $7.3m -$3.5m -$9.2m -$7.5m -$3.0m 0 $3.5m -5 -$1.7m -10 1st Half Restructuring 2009 (H1) Volume Price Billet/ Inflation Cost 2010 (H1) Equity Comp Restr
Slide 8: Anti Dumping Update: Capral Has Proven Its Case
ANTI DUMPING UPDATE CAPRAL HAS PROVEN ITS CASE 1. There is an Australian Industry producing like goods 2. Certain extrusions were dumped 3. Countervailing subsidies exist in China 4. The Australian Industry producing like goods experienced injury 5. Dumping and subsidisation caused material injury t
Slide 9: Anti Dumping Update: Proposed Australian Measures Are Low
ANTI DUMPING UPDATE BUT - THE PROPOSED AUSTRALIAN MEASURES, AT THIS POINT ARE LOW Estimated Australian Measures Canada USA Due Sept ‘10 To largest Exporters ~ 5% ~ 33% Seeking ~ 33% weighted average Next Steps: • Capral has lodged an appeal against an aspect of Customs’ findings. The Trade Measures
Slide 10: Strategy & Business Turnaround
STRATEGY & BUSINESS TURNAROUND The First Phase has been completed: • Stabilise the Business - Recapitalise the Balance Sheet - Introduce a new operating philosophy - Implement a new management structure and accountability - Realise significant cost savings - Launch an Anti Dumping Case - Achieve pos
Slide 11: Outlook
OUTLOOK Market • Residential market to resume in 2011 after stalling. • Commercial to remain subdued. • Industrial mixed but growing with GDP. Pricing • Under pressure as a consequence of soft market conditions, continued influx of low priced imported products and some likely increases in domestic e
Slide 12: Anti Dumping - Appendix
ANTI DUMPING - APPENDIX Background • The Australian aluminium industry has suffered material injury from the effects of price undercutting from Chinese extrusion imports. Capral believes that this pricing reflects dumping and Chinese Government subsidy effects. • During the last decade, Chinese extr