Slide 1: 2024 Full Year Results Presentation and Earnings Guidance
2024 Full Year Results Presentation and Earnings Guidance 26 February 2025 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 FY24 Highlights 3 FY24 Financials 4 Strategy 5 Outlook & Guidance
Slide 3: Our business at a glance
3 Manufacturer and Distributor of #1 Aluminium Extrusion Our business at a glance Distributor of #1 Aluminium Sheet and Plate Australia’s leading supplier of aluminium extrusion and rolled products Supplier of #1 Aluminium Value Add Services
Slide 4: Our business at a glance
4 Our business at a glance 6 Plants 8 Distribution Centres Key Markets ~28% 8 Extrusion Presses 14 Trade Centres • Residential and Market Share Commercial Building 65,000 tonne Annual extrusion capacity • Industrial (Transport, Marine, Infrastructure, Solar, Metal Fabrication) ~$650 million ~$470 mi
Slide 5: Full year highlights
5 Full year highlights "Earnings above top-end of guidance range: • Industrial demand remained solid • Residential demand was weaker than prior year due to continued low commencements and reduced pipeline • Margins maintained through effective cost management and recovery." Tony Dragicevich, CEO & M
Slide 6: FY24 Performance highlights
6 FY24 Performance highlights Full year results exceed expectation Volume Revenue EBITDA1 EBIT NPAT2 67,800 tonne $650m $58.3m $34.5m $32.5m 71,100t FY23 $657m FY23 $61.5m FY234 $38.5m FY234 $31.8m FY23 5% on par 5% 10% 2% EPS2 Net Cash NTA per share Capital Management Safety Performance $1.88 $68.9
Slide 7: Sales channels
7 Sales channels Industry diversification supports volume during housing downturn Volume 5% down on FY23, ahead of expected housing recovery starting late 2025 • Residential soft as commencements remained low and backlog dissipated Volume (six monthly) • Resellers returned to imports as supply chain
Slide 8: Detached housing commencements remain soft
8 Detached housing commencements remain soft Expecting recovery in second half 2025 Capral’s residential volume is mainly aligned with Detached 2024 and Low-Rise Dwellings Latest estimate1 167,800 starts in 2024 • Residential starts impacted by: Annual Dwelling Commencements1 (000’s) - High interest
Slide 9: Recent Capral Projects: Residential
9 Recent Capral Projects Residential Boon Residence, WA The Albany, NSW Hill Street Wallsend, NSW Fabricator Products Fabricator Products Fabricator Products Busselton Aluminium Capral AGS Framing PCW Commercial Capral AGS Framing Fin Windows Urban 280 Sliding Window Windows System Windows System +
Slide 10: Recent Capral Projects: Commercial
10 Recent Capral Projects Commercial Donnybrook Railway Precinct, WA Southern Ocean Lodge, SA Song Bird Restaurant, NSW Fabricator Products Fabricator Products Fabricator Products LGA (WA) Capral AGS Framing System KR Installations Capral AGS Framing System Arch System Capral AGS Framing System Fabr
Slide 11: Industrial sector remains solid
11 Industrial sector remains solid Underpinned by broad industry diversification Transport Marine Solar Industrial Manufacturing & Resellers • Sector strong and • Commercial ferry builds • Demand for local solar Construction General Fabrication • Volume to resellers customer order books good local d
Slide 12: Recent Capral Projects: Industrial
12 Recent Capral Projects Industrial BAB Aluminium Muscat Trailers Incat Aluminium seating and grandstands Truck Trailer Builders Ferry builder Ingleburn, NSW Narellan, NSW Hobart, TAS
Slide 13: Full year highlights
13 Full year highlights "Earnings performance and cash generation remains strong despite slightly lower volume and inflationary pressures." Tertius Campbell, CFO
Slide 14: Metal cost increased in 2024 and lifted sharply at year end
14 Metal cost increased in 2024 and lifted sharply at year end and first quarter 2025 Aluminium Price $A (LME & Premiums) 1. Premiums were reasonably steady throughout 2024 but regional premiums have lifted sharply in 1Q25 5.00 2. The international LME price is volatile and impacted by global supply
Slide 15: Earnings better than expectation
15 Earnings better than expectation Remained robust throughout downturn in housing sector 1 Volume 5% lower than FY23 FY24 FY23 2 Sales Revenue on par with FY23, reflecting higher metal cost and selling prices Sales Volume ('000 tonnes) 1 67.8 71.1 EBITDA (excluding one-off claims cost reversal of $
Slide 16: Strong balance sheet
16 Strong balance sheet underpinning capital management initiatives 1 Inventory increased due to higher stock levels to support service offer Balance Sheet Dec 24 Dec 23 combined with higher metal prices (LME). Goods in transit were $14.3m Current Assets $m $m higher than prior year Inventory 1 155.
Slide 17: Strong cash generation
17 Strong cash generation Cash Flow FY24 FY23 Continued strong focus on cash management. $m $m 1 Working capital decreased marginally EBITDA 1 58.3 61.5 Finance cost higher due to increase in Right of Use leases Working Capital 1 1.3 19.9 2 Finance Cost 2 (6.8) (6.4) 3 Capex above prior year but in
Slide 18: Disciplined capital management
18 Disciplined capital management driving solid returns for shareholders 1. Distributions On-Market buy-back Final Dividend Special Dividend Interim Dividend • Capral aims to distribute 40-80% of underlying earnings per share • Total distribution of 76 cps or 45.5% (FY23: 72.5 cps or 41.0%) 2. Frank
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 & 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 t
Slide 21: Improve productivity, grow in new market segments
21 Improve productivity, grow in new market segments 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 ef
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 enhanced its Integrated Management Software (IMS) to improve ESG performance and align with new sustainability reporting Environment Social Governance standards • Environmental conservation • Our
Slide 24: Outlook and Guidance
24 Outlook and Guidance • FY25 EBITDA³, absent unforeseen events, expected to be broadly in line with prior year • Industrial and Commercial markets are expected to remain firm • Residential building commencements are forecast¹ to remain soft with a recovery to start in second half of 2025 • LME² is
Slide 25: Questions & Appendix
Questions & Appendix
Slide 26: Strategic National Footprint
26 Strategic National Footprint Capral has a national footprint with a presence in every state 24 Darwin and Extrusion plants near five mainland capital cities Cairns 1 5. Bremer Park Manufacturing Plan • Capacity 23k tonnes Townsville 2 • 3 presses • 1 paintline • Co-located with distribution centre