Slide 1: 2013 Full Year Results Presentation
For personal use only 2013 Full Year Results Presentation 21 February 2014 Capral Limited 1 21 February 2014 CAPRAL FULL YEAR RESULTS
Slide 2: Overview of Results: Full Year to December 2013
OVERVIEW OF RESULTS FULL YEAR TO DECEMBER 2013 For personal use only • Trading EBITDA1 profit of $4.1m, (2012: $4.0m) $4.1m Trading profit • Volumes slightly up assisted by OSA acquisition in Q4 • OSA acquisition contributed $0.4m EBITDA1 • Net loss of $51.7m includes: Net Profit impacted by impairm
Slide 3: Financial Summary: Twelve Months to December 2013
FINANCIAL SUMMARY TWELVE MONTHS TO DECEMBER 2013 For personal use only 2013 2012 Sales Volumes - External (‘000 tonnes) 45.9 45.3 $m $m Sales Revenue 310.3 303.9 1 Trading EBITDA 4.1 4.0 Restructuring cost (4.3) (1.4) LME Revaluation/ Forex 2 (1.0) (0.6) 3 Acquisition Gain (less associated cost) 1.8
Slide 4: Cost Management Initiatives Played a Critical Role
COST MANAGEMENT INITIATIVES PLAYED A CRITICAL ROLE MITIGATING NEGATIVE VOLUME, PRICE AND INFLATION IMPACTS For personal use only 1 EBITDA $m 6 $4.0 ($2.3) $0.9 $4.1 4 $10.9 2 ($5.5) 0 -2 ($4.1) -4 -6 $0.4 -8 -10 Trading Volume Margin Inflation OSA Cost Management Other Trading EBITDA 12 Initiatives E
Slide 5: Trading EBITDA Break Even Point Improved by 44% Since 2008
TRADING EBITDA1 BREAK EVEN POINT OF THE BUSINESS HAS IMPROVED BY 44% SINCE 2008 For personal use only Tonnes per day 300 Underlying costs have reduced significantly. 295 • Further employee head count reduction of 46 since December 2012 (excluding OSA acquisition) • Manufacturing efficiency improved
Slide 6: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG For personal use only $m $m $m 12 months to Dec 13 Dec 12 Dec 11 EBITDA (41.4) 2.1 6.2 Working Capital 3.4 6.9 2.3 Finance Cost (0.8) (0.5) (1.6) Equity Compensation Amortisation 0.8 1.2 1.2 Operating Cash Flow Impairment 41.5 - - Gain on acquisition (3.1) - - Other 0.1
Slide 7: OneSteel Aluminium Acquisition
ONESTEEL ALUMINIUM ACQUISITION For personal use only • Completed 1 October 2013 • Fixed Assets, Inventory and Employee entitlements acquired for $18.7m Successful Acquisition • Partially funded by a capital raising ($13.9m) • $1.8m net acquisition gain after integration and restructuring costs • Mig
Slide 8: Leverage to Recovery in Residential Construction
LEVERAGE TO RECOVERY IN RESIDENTIAL CONSTRUCTION For personal use only COMMENCEMENT RECOVERY STARTED IN 2013 AND ANTICIPATED TO CONTINUE THROUGH 2015 ANNUAL DWELLING COMMENCEMENTS ‘000 200 MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS 175 Underlying demand 175 175 MONTHLY 168 169 U
Slide 9: Aluminium Extrusion Demand Expected to Recover from Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND IS EXPECTED TO RECOVER FROM CYCLICAL LOW LEVELS For personal use only ‘000 Tonnes ALUMINIUM EXTRUSION MARKET PA 200 200 • Market has fallen ~22% from its high in 2007 to the low in 2012 183.3 175 Forecast • Early signs of recovery is visible in the new dwelling sector 22%
Slide 10: Outlook
OUTLOOK For personal use only • H ousing commencements are forecast* to be around 168,700 for calendar 2014, up 4% on the prior year • The weakening AUD, although still high by historical standards, is a positive sign for local manufacturing and under normal circumstances should assist Capral’s comp
Slide 11: Important Notes
IMPORTANT NOTES For personal use only This presentation includes forward-looking estimates that are subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly 1 Trading EBITDA is the Statutory EBITDA adjusted for significant items that are material i