Capral Limited · ASX:CAA
Capral — FY2016 Earnings Presentation
12 slides from Capral's earnings presentation, Feb 23, 2017
Slide 1: 2016 Full Year Results Presentation
2016 FULL YEAR RESULTS PRESENTATION 23 FEBRUARY 2017 CAPRAL LIMITED 1 23 FEBRUARY 2017 CAPRAL FULL YEAR RESULTS
Slide 2: General Information
GENERAL INFORMATION Important Notes Darwin This presentation includes forward-looking estimates that are subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly. Cairns Townsville Trading EBITDA is the Statutory EBITDA adjusted for Mackay signific
Slide 3: Overview of Results
OVERVIEW OF RESULTS FULL YEAR TO DECEMBER 2016 $20.3m Trading EBITDA1 • Trading EBITDA1 of $20.3m (2015: $13.0m) • EBITDA of $21.1m (2015: $5.1m) $21.1m EBITDA • Revenue up 5.5% on 2015 • Volumes up 9.7% • Strong housing market driving volume increase Net Profit of $14.4m • Net Profit after tax of $
Slide 4: Financial Summary
FINANCIAL SUMMARY TWELVE MONTHS TO DECEMBER 2016 2016 2015 Sales Volumes - External (‘000 tonnes) 63.4 57.8 $m $m Sales Revenue 424.8 402.6 1 Trading EBITDA 20.3 13.0 Restructuring related cost - (0.7) LME Revaluation 2 1.0 (7.0) Other one off costs 2 (0.2) (0.2) EBITDA 21.1 5.1 Depreciation/Amortis
Slide 5: Trading EBITDA Bridge
TRADING EBITDA BRIDGE Trading EBITDA $m 25 $0.5m ($3.4m) $0.7m $20.3m 20 $6.5m $3.0m 15 $13.0m 10 5 0 Trading EBITDA Volume Margin and Mix Inflation Cost Management Other Trading EBITDA FY15 Initiatives FY16 5 23 FEBRUARY 2017 CAPRAL FULL YEAR RESULTS
Slide 6: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG $m $m $m 12 months to Dec 16 Dec 15 Dec 14 EBITDA 21.1 5.1 11.0 Working Capital (5.0) 2.9 (1.2) Positive operating cash flow Acquisition Restructuring Costs - - (2.2) driven by improved earnings Finance Cost (0.9) (1.2) (1.2) Equity Compensation Amortisation 0.3 0.6 0.7
Slide 7: Metal Costs Have Been Stable Throughout 2016
METAL COSTS HAVE BEEN STABLE THROUGHOUT 2016 A$/kg 3.00 2.50 2.00 • Metal costs reached multi-year highs in H1 2015 but Premiums collapsed during 1.50 the second half of 2015 • Metal costs in 2016 have generally been 1.00 stable but LME increased late in the year and has continued to rise in early 2
Slide 8: Residential Construction Driving Strong Market
RESIDENTIAL CONSTRUCTION DRIVING STRONG MARKET RECOVERY STARTED IN 2013. MULTI-RES ANTICIPATED TO SLOW IN 2017.DETACHED HOUSING REMAINED STABLE MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS ANNUAL DWELLING COMMENCEMENTS ‘000 250 MONTHLY UNITS 22,000 227 225 20,000 216 211 18,000 20
Slide 9: Aluminium Extrusion Demand Has Recovered From Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND HAS RECOVERED FROM CYCLICAL LOW LEVELS AND IS EXPECTED TO REMAIN AT CURRENT LEVELS ‘000 Tonnes ALUMINIUM EXTRUSION MARKET SALES VOLUME PA 200 • Extrusion Market in 2016 has grown and is Forecast 200 186 expected to remain at these levels through 2017 186 179 due to the pip
Slide 10: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES • Widest aluminium product offer BUILD • Large scale extrusion capability On our strengths • National distribution network • Committed and experienced people • Continue to reduce cost base OPTIMISE • Lean manufacturing drive to world class productivity What we do • Optimise
Slide 11: Anti-Dumping Measures Having a Positive Impact on Volume
ANTI-DUMPING MEASURES HAVING A POSITIVE IMPACT ON VOLUME The impact of the initial • Case won in 2010 but the levels of duties imposed on Chinese imports anti-dumping measures were low was modest • Circumvention activities diminished the impact • A sustained campaign has resulted in reforms to feder
Slide 12: Outlook
OUTLOOK • Housing commencements are forecast¹ to be around 211,450 for the 2017 year, down 7% on the strong 2016 market. Detached housing down 4% and multi-residential down 10% • Extrusion market expected to remain reasonably strong through 2017 due to pipeline of residential work and increase in no