Slide 1: 2018 Full Year Results Presentation
2018 Full Year Results Presentation
Slide 2: Australia's leading supplier of aluminium products and solutions
Australia's leading supplier of aluminium products and solutions 5 plants; 8 extrusion presses 17 distribution centres Australia-wide Annual extrusion capacity 70k tonnes Annual turnover ~$455 million¹ Residential, commercial construction, industrial Employs over 1000 people ¹ 12 months to 31 Dec 20
Slide 3: Agenda
Agenda 1. FY18 Highlights 2. FY18 Financials 3. Strategy and Outlook 4. Questions 3
Slide 4: FY18 Highlights
FY18 Highlights Tony Dragicevich, CEO & MD “Full year earnings in line with guidance” 4
Slide 5: FY18 Performance Highlights
FY18 Performance Highlights Full year result in line with guidance Trading EBITDA¹ of $14.3m (FY17: $18.4m) and EBITDA of $13.1m (FY17: $18.8m) Volumes down 4% on prior period after a reasonably strong first half Strong balance sheet and net cash of $27.6m Final dividend declared at 1.0 ce
Slide 6: Volume Breakdown
Volume Breakdown Channels to market (volume) Diverse industry exposure Volume Seasonality Tonnes (000’s) Source: Capral * Residential building includes additions and alterations Source: Capral RDC: Capral Regional Distribution Centre ** Industrial includes transport, marine and other manufacturing s
Slide 7: Conditions softening in Residential market
Conditions softening in Residential market Annual Dwelling Commencements¹ (‘000) 2018 Residential commencements in line with 2017 but forecast to decline through 2019 Multi-Res High Rise is showing the sharpest decline, forecast 26% down in 2019, however this is not a source of primary volume fo
Slide 8: Recent Capral Residential & Commercial Projects
Recent Capral Residential & Commercial Projects Architect designed house Queanbeyan NSW, featuring Schuco doors Adelaide Convention Centre SA featuring Capral Commercial Framing Barwon Water, Geelong VIC, featuring Capral Curtain Wall 175 Moololah House, Brisbane, featuring Amplimesh Supascreen secu
Slide 9: Industrial sector robust
Industrial sector robust Total Capral Industrial Volumes (Index 2012) New Truck and Van builds¹ (‘000) 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 2018 F² F² Source: Capral ¹ Source: TIC (Truck Industry Council of Australia) (Prime Mover Magazine) ² Source: Capral Transport segment continu
Slide 10: Recent Capral Industrial Projects
Recent Capral Industrial Projects Austal Shipyard Henderson WA, patrol boats and commercial ferry Bannister Downs WA, featuring anodized aluminium sheet “Echoes” aluminium sculpture in Kempsey NSW Truck trailer units built by MaxiTrans, Ballarat VIC 10
Slide 11: Extrusion market steady but beginning to slow
Extrusion market steady but beginning to slow Residential construction slowing particularly in High Rise Detached housing is the primary driver of Capral’s volume in the residential market Non-residential building remains robust Key industrial sectors reasonably strong Capral has an estima
Slide 12: FY18 Financials
FY18 Financials Tertius Campbell, CFO “Cash flow generation remains strong, enabling the business to invest in operational improvement projects and return cash to shareholders" 12
Slide 13: Trading EBITDA Impacted by Higher LME and Imports
Trading EBITDA Impacted by Higher LME and Imports FY18 total volume 4% lower than prior period FY18 FY17 Sales revenue improvement driven by higher LME Sales Volume ('000 tonnes) 60.5 63.2 prices $m $m Sales Revenue 455.1 448.7 Margins continue to be under pressure due to imports and excess lo
Slide 14: Metal Cost Recovery Negatively Impacted by rising LME
Metal Cost Recovery Negatively Impacted by rising LME Announcement by US Government of trade sanctions caused LME to rise 35% in April 2018 to a 7 year high of $US2,718t LME remained high throughout most of 2018 Easing concerns saw LME fall back late in the year to finish 2018 at $US1,858t. Th
Slide 15: Financial position supports dividends and re-investment
Financial position supports dividends and re-investment FY18 FY17 Dec 18 Dec 17 $m $m $m $m Current Assets EBITDA 13.1 18.8 Inventory 85.0 77.0 Working Capital 0.0 (3.0) Trade Receivables 65.4 68.0 Finance Cost & Other (1.1) (0.8) Net Cash and Equivalents 27.6 34.4 Other 1.7 0.7 Operating Cash Flow
Slide 16: Strategy and Outlook
Strategy and Outlook Tony Dragicevich, CEO & MD “Invest in technology to ensure Capral’s long term competitive position" 1616
Slide 17: Investments to improve productivity and competitiveness
Investments to improve productivity and competitiveness Automated product handling and packing at Bremer New paint line at Canning Vale, WA ($2.4m) Park, QLD ($5.0m) Equipment installation completed Q4 2018 Stage 1 & 2 installation and commissioning Commissioning well advanced successfully
Slide 18: Dumped imports suppress prices and injure local industry
Dumped imports suppress prices and injure local industry 18
Slide 19: Outlook
Outlook LME¹ is forecast to remain in a modest downward trend during 2019 AUD weakened to ~$US0.70 by 2018 year end and forecast to remain close to that level through 2019² Residential commencements are expected to soften³ Industrial sector anticipated to remain reasonably strong Extrusion
Slide 20: National footprint of aluminium extrusion plants and distribution centres
National footprint of aluminium extrusion plants and distribution centres Extrusion Extrusion plants plants Distribution Distribution centres centres QLD - Bremer Capacity 35k tonnes, 4 presses 2 paint lines and anodising line 2018: Automated product handling project WA - Canning Vale Capaci
Slide 21: Questions
CAPRAL ALUMINIUM SHAPING THE FUTURE Questions