Capral Limited · ASX:CAA
Capral — Capral Aluminium — H1 2002 Earnings Presentation
22 slides from Capral's earnings presentation, August 2002
Slide 1: Analyst Presentation - August 2002
Capral Aluminium Limited Analyst Presentation - August 2002 z Half Year Results June 2002 z Capral Strategy Greg P L’Estrange Nigel D B Chalk
Slide 2: Half Year Results June 2002
Capral Aluminium Limited Analyst Presentation Half Year Results June 2002
Slide 3: Earnings
Capral Aluminium Limited Earnings June 2002 June 2001 ‘000 ‘000 Sales 230,228 229,463 EBITDA from Trading 11,216 4,499 D&A 6,187 7,544 EBIT from Trading 5,029 (3,045) Non Trading Inc/(Exp) 867 17,973 EBIT 5,896 14,928 Interest Expense 1,053 354 Profit Before Tax 4,843 14,574 Tax 483 1,017 NPAT 4,360
Slide 4: Turnaround Status
Capral Aluminium Limited Turnaround Status 2002 2001 2001 Jan-Jun Jul-Dec Jan-Jun Sales Core Business 184,807 198,492 165,767 New Zealand 21,487 18,866 19,470 Discontinued Business 0 17,189 24,393 Scrap 21,569 51,451 19,329 Other 2,365 1,765 504 230,228 287,763 229,463 Profit EBIT from Continuing Op
Slide 5: Earnings
Capral Aluminium Limited Earnings June 2002 June 2001 ‘000 ‘000 EPS 6.4c 9.5c DPS 4.0c 8.0c NTA 235.9c 246.3c EBIT/Sales 2.6% 6.5% EBIT/Sales Trading 2.2% (1.3%) Capral Aluminium Limited Half 5 Year Results 2002
Slide 6: Balance Sheet
Capral Aluminium Limited Balance Sheet Dec-00 Dec-00 Dec-01 Jun-02 Actual Pro Forma Actual Actua l Debtors 94.7 86.5 77.6 66.5 Inventory 97.7 97.7 63.6 59.2 Other Debtors 0.7 0.7 4.0 2.1 Creditors (66.0) (50.6) (53.3) (53.3) Other Creditors (100.5) (14.6) (15.7) (12.3) Working Capital 26.6 119.7 76.
Slide 7: Sales Tonnes by Segment
Capral Aluminium Limited Sales Tonnes by Segment 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Auto Building Centres IMP-Build IMP-Ind Tas NZ 2001 2002 Capral Aluminium Limited Half 7 Year Results 2002
Slide 8: LME and Sales movement
Capral Aluminium Limited LME and Sales movement 6.30 5.80 5.30 4.80 $/Kg 4.30 3.80 3.30 2.80 2.30 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Sell $/Kg LME Spread Capral Aluminium Limited Half 8 Year Results 2002
Slide 9: Headcount
Capral Aluminium Limited Headcount Jun 2002 Dec 2001 ‘000 ‘000 Manufacturing 654 688 Sales & Marketing 212 224 Corporate 64 67 Other 3 19 New Zealand 152 165 Total 1,085 1,163 Capral Aluminium Limited Half 9 Year Results 2002
Slide 10: December 2001 Undertakings
Capral Aluminium Limited December 2001 Undertakings Subject Measure Progress 1) Property Sales $21m Granville, Wingfield, Townsville 2) Working Capital $25m Achieved $14.0m - Ontrack 3) Headcount 161 Should be achieved 4) One System In Place Delay of 4 Months 5) New Zealand Path Forward Bradnam’s JV
Slide 11: Capral Strategy
Capral Aluminium Limited Analyst Presentation Capral Strategy
Slide 12: Capral is an Extrusion Company
Capral Aluminium Limited Capral is an Extrusion Company Without a strong “extrusion” engine room, the business has a questionable value. Capral Aluminium Limited Half 12 Year Results 2002
Slide 13: Strategy
Capral Aluminium Limited Strategy Establish two integrated extrusion centres of excellence at Canning Vale, Perth and Smeaton Grange, (Camden) Sydney. These manufacturing sites will be supported by Regional hubs to improve service to customers. These hubs will have value adding facilities incorporat
Slide 14: Impact of Change
Capral Aluminium Limited Impact of Change CURRENT FUTURE Manufacturing Warehouse Manufacturing Warehouse &/or Value Add Centres East Eagle Farm (Qld) Murarrie (Qld) Smeaton Grange Eagle Farm (Qld) Coast (NSW) Minto (NSW) Homebush (NSW) Yennora (NSW) Yennora (NSW) Granville (NSW) Campbellfield(Vic) M
Slide 15: Strategy
Capral Aluminium Limited Strategy z Strategy is focused on cost leadership and a significant reduction in order lead times. z The Project is based on existing market volumes, with some additional value adding for finishing of existing Capral metal that is not coated by Capral. Capral Aluminium Limit
Slide 16: Cost Improvement Areas
Capral Aluminium Limited Cost Improvement Areas z People Costs 626 fewer (full time equivalents) Not all these people are currently employed by Capral. z Extrusion Recovery Improvement – Existing 76% – Projected 87% – Benefit per 1% of recovery $400,000 EBIT Capral Aluminium Limited Half 16 Year Res
Slide 17: Import Competition
Capral Aluminium Limited Import Competition z The major growth in market share over the past 10 years has been South East Asia. z They have major production cost advantages over Australia. z However, Capral’s new facility will have a labour cost of less than $A0.40 per kilo. This cost caters for ext
Slide 18: Smeaton Grange Project
Capral Aluminium Limited Smeaton Grange Project z Land and Buildings – Supplied by Tesrol under a 10 x 10 year lease. – Capral has an option to purchase in year 10. – Land size 11.5 hectares. – Building 57,800 m2. Capral Aluminium Limited Half 18 Year Results 2002
Slide 19: Smeaton Grange Project
Capral Aluminium Limited Smeaton Grange Project • Plant and Equipment – Press – Provider: Cometal and SMS – 2 new presses, 3 totally refurbished. – The current wide range of products will be available, with a significant improvement in quality due to cooling and handling equipment. – Finishing – Pro
Slide 20: Funding
Capral Aluminium Limited Funding $M Overdraft 10.0 Borrowings 50.0 Sale of Campbellfield and Minto Sites 14.5 Granville Site 16.5 $91.0M Capral Aluminium Limited Half 20 Year Results 2002
Slide 21: Project Timetable
Capral Aluminium Limited Project Timetable Milestone Start Finish Site Works Building Approval August 02 October 02 Earth Works October 02 November 02 Steel November 02 February 03 Concrete November 02 March 03 Handover June 03 Plant Press Stage 1 February 03 April 03 Press Stage 2 June 03 July 03 F
Slide 22: New Production/Warehousing Operations
Capral Aluminium Limited New Production/Warehousing Operations Campbellfield Eagle Farm Automotive Products Light Manufacturing Light Manufacturing Security Products Home Improvements Home Improvements Warehouse(Cross Dock) Warehouse(Cross Dock) Finishing Capability Finishing Capability Smeaton Gran