Slide 1: 2024 Half Year Results Presentation and Earnings Guidance
2024 Half Year Results Presentation and Earnings Guidance 28 August 2024 Capral Limited (ASX:CAA) 15 Huntingwood Drive, Huntingwood NSW 2148 Approved and authorised by Capral’s Board of Directors
Slide 2: Agenda
2 Agenda 1 Business Overview 2 1H24 Highlights 3 1H24 Financials 4 Strategy 5 Outlook & Guidance
Slide 3: Our business at a glance
3 Manufacturer of #1 Aluminium Extrusion Our business at a glance #1 Distributor of Aluminium Sheet and Plate Australia’s leading Supplier of supplier of aluminium #1 Industrial Extrusion extrusion and rolled products Supplier of #1 Aluminium Value Add Services Distributor of #2 Window and Door Fram
Slide 4: Our business at a glance
4 Our business at a glance 6 Plants 8 Distribution Centres Key Markets ~28% 8 Extrusion Presses 15 Trade Centres Residential and Market Share Commercial Construction 65,000 tonne Industrial Annual extrusion capacity ~$640 million1 ~$455 million 1000+ Annual Turnover Total Assets Employees 1 Last 12
Slide 5: Half year highlights
5 Half year highlights "Volume and earnings in line with expectations: • Residential demand was weaker than prior year due to low commencements and reduced pipeline • Industrial demand remained solid • Margins maintained through effective cost management and recovery." Tony Dragicevich, CEO & Managi
Slide 6: 1H24 Performance highlights
6 1H24 Performance highlights Half year results in line with expectations Volume Sales Revenue Underlying EBITDA1, 2 Underlying EBIT2 EBITDA¹ 33,500 tonne $313m $28.7m $16.9m $29.2m 35,600t 1H23 $330m 1H23 $31.7m 1H234 $20.7m 1H234 $31.1m 1H234 6% 5% 9% 18% 6% NPAT Net Cash NTA per share Capital Man
Slide 7: Sales channels
7 Sales channels Industry diversification supports volume during housing downturn Volume 6% down on 1H23 in line with expectations • Residential soft as commencements remained low and backlog dissipated • Resellers returned to imports as supply chain normalised Volume (six monthly) 45 • Partially of
Slide 8: Detached housing commencements have slowed
8 Detached housing commencements have slowed Multi-residential expected to lead recovery Capral’s residential volume is mainly aligned with Detached 2024 and Low-Rise Dwellings Latest estimate1 165,000 starts in 2024 Annual Dwelling Commencements1 (000’s) • Residential starts impacted by: - High int
Slide 9: Recent Capral Projects: Residential
9 Recent Capral Projects Residential Phoenix Terraces Islington, NSW Eagle Bay Beach House, WA The Palms Collaroy, NSW Fabricator Products Fabricator Products Fabricator Products Fin Windows Capral Urban Windows & Busselton Aluminium Capral Artisan Framing PCW Commercial Capral AGS Framing System Do
Slide 10: Recent Capral Projects: Commercial
10 Recent Capral Projects Commercial Catherine McCawley College, NSW Monterey Community Centre, NSW Gold Coast Airport, QLD Fabricator Products Fabricator Products Fabricator Products PCW Commercial Capral AGS Framing System PCW Commercial Capral AGS Framing System Queensland Glass Capral Curtain Wa
Slide 11: Industrial sector remains solid
11 Industrial sector remains solid Underpinned by broad industry diversification Transport Marine Solar Industrial Manufacturing & Resellers • Sector holding at record • Commercial ferry builds • Demand for local solar Construction General Fabrication • Volume to resellers highs on growing freight s
Slide 12: Recent Capral Projects: Industrial
12 Recent Capral Projects Industrial Borcat Trailers Ciltech Incat Trailer Manufacturer Marina manufacturer Ferry builder Wetherill Park, NSW Wangara, WA Hobart, TAS
Slide 13: Half year highlights
13 Half year highlights "Underlying earnings performance and cash generation remains strong despite lower volume and inflationary pressures." Tertius Campbell, CFO
Slide 14: Metal cost broadly in line with 2023
14 Metal cost broadly in line with 2023 Aluminium Price $A (LME & Premiums) 1. Average Premiums decreased marginally during 1H24, due to 5.00 lower regional premiums 2. The international LME price is 4.00 volatile and impacted by global supply factors. Average LME remained on par with 3.00 FY23 at $
Slide 15: Earnings in line with expectations
15 Earnings in line with expectations Strong underlying EBITDA 1H24 1H23 1 Volume 6% lower than 1H23 Sales Volume ('000 tonnes) 1 33.5 35.6 Sales Revenue down 5% on 1H23, reflecting lower volume $m $m 2 Sales Revenue 2 313.4 329.6 3 Underlying EBITDA (excluding one-off claims cost reversal of $2m in
Slide 16: Strong balance sheet
16 Strong balance sheet underpinning capital management initiatives 1 Inventory increased due to normal mid-year higher stock levels and Balance Sheet Jun 24 Dec 23 higher metal prices (LME) than end 2023 Current Assets $m $m Inventory 1 137.0 126.1 2 Receivables metrics remain excellent with DSO at
Slide 17: Strong cash generation
17 Strong cash generation with cash released from lower working capital Cash Flow 1H24 1H23 Continued strong focus on cash management. Cash conversion ratio improved due to reduction in working capital. $m $m Underlying EBITDA 1 28.7 31.7 1 Working capital decrease driven by strong collections and t
Slide 18: Disciplined capital management
18 Disciplined capital management driving returns for shareholders On-Market buy-back Final Dividend Special Dividend Interim Dividend 1. Dividends • Capral resumed paying dividends in 2017 for FY16 • All dividends were fully franked • Future dividends will be unfranked until Capral has utilised ava
Slide 19: Strategy and outlook
19 Strategy and outlook "We continue to focus on increasing return on invested capital, improving our competitive position, and growing our presence in aluminium distribution." Tony Dragicevich, CEO and Managing Director
Slide 20: Clearly Defined Strategy
20 Clearly Defined Strategy Build, Optimise and Grow GROW for the future • Leverage our capabilities into new opportunities • Develop innovative new products and channels to market • Enhance presence in architectural OPTIMISE what we do markets • Continually improve key customer • Expand footprint s
Slide 21: Improve productivity, grow in new markets
21 Improve productivity, grow in new markets and retain market share gains Manufacturing Distribution Sales and Marketing • Continue process improvement programmes • Capral's new window and door range and • Ongoing technology investment to improve systems software released to market sales effectiven
Slide 22: Improve productivity, grow in new markets
22 Improve productivity, grow in new markets and retain market share gains Market Development Lower-carbon Aluminium Solar Cladding Imports & Anti-dumping • Expand market understanding and • Grow share against imports in the • Work with cladding system • Retain market share gains penetration of LocA
Slide 23: ESG Framework
23 ESG Framework On a path to a better tomorrow 2024 Highlights Three Pillars of Sustainability • Capral's Integrated Management System enhanced to align with International Financial Reporting Standards (IFRS), including data capture for Environmental Product Declarations Environment Social Governan
Slide 24: Outlook
24 Outlook Earnings guidance unchanged • FY24 Underlying EBITDA³, absent unforeseen events, expected to be in the range of $50m to $54m, with NPAT between $23m and $27m • Industrial and Commercial markets are expected to remain firm • Residential building commencements are forecast¹ to remain soft f
Slide 25: Questions & Appendix
ALUMINIUM Questions & Appendix
Slide 26: Strategic National Footprint
26 Strategic National Footprint Capral has a national footprint with a presence in every state 25 Darwin and Extrusion plants near five mainland capital cities Cairns 1 5. Bremer Park Manufacturing Plant • Capacity 23k tonnes Townsville 2 • 3 presses • 1 paintline • Co-located with distribution centr