Capral Limited · ASX:CAA
Capral — H1 2003 Earnings Presentation
18 slides from Capral's earnings presentation, August 2003
Slide 1: Analyst Presentation - Half Year Results 30 June 2003
Analyst Presentation - August 2003 Half Year Results 30 June 2003 Capral Strategy Greg L’Estrange – Managing Director Nigel Chalk – Finance Director Page 1
Slide 2: Analyst Presentation Half Year Results
Analyst Presentation Half Year Results 30 June 2003 Page 2
Slide 3: Earnings Summary
Earnings Summary Half Year 30 June 2003 2003 2002 Revenue from operating activities 186,181 230,228 Revenue from outside the operating activities 483 1,463 Total Revenue 186,664 231,691 EBITDA 2,856 12,083 D&A 6,203 6,187 EBIT (3,347) 5,896 Interest Expense (350) (1,053) (Loss)/Profit Before Taxatio
Slide 4: Underlying Performance
Underlying Performance 000's Half Year 30 June 2003 2003 2002 Better / (Worse) Revenue from operating activities * Sales Revenue Australia - core business 168,186 184,807 (16,621) Sales Revenue Australia - closed business 0 0 0 Sales Revenue New Zealand 0 21,487 (21,487) Other (primarily scrap sales
Slide 5: Year over Year EBIT
Year over Year EBIT Description 000's Driver B / (W) EBIT HY 02 5,896 EBIT HY 03 (3,347) EBIT Variance (9,243) Volume (6,920) De-stocking by major Fabricator and Distributor customers / Low er production volumes / transition costs $200k Pricing (346) Freight (290) Overheads 98 Business support costs
Slide 6: Half Year 02 vs 03 Sales Tonnes by Segment
Half Year 02 vs 03 Sales Tonnes by Segment 14000 2002 12000 2003 10000 8000 6000 4000 2000 0 Architectual Industrial Automotive Centres 2002 13465 10768 1480 3702 2003 13136 9171 1348 3488 Page 6
Slide 7: Capral Monthly Tonnage
Capral Monthly Tonnage 6,500 6,000 Destocking undertaken by 5,500 major customers in Building Fabricators and Distributor 5,000 segments. 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 N 02 D 02 M 02 M 03 Se 0 2 O 2 Ja 2 Fe 2 Fe 3 Ju 2 Ju 3 A 02 3 M 2 A 2 Ju 2 M 3 A 3 Ju 3 0 -0 l-0 0 0 -0 -0
Slide 8: Overhead Analysis
Overhead Analysis Half Year 30 June 2003 000's 2003 2002 FY 2002 HY Warehouse Overheads 4,874 9,089 4,501 Selling Expenses 15,488 31,446 15,478 Information Technology 4,335 8,842 4,213 Corporate Overheads 6,017 13,484 6,620 Total Australia 30,714 62,861 30,812 New Zealand 0 4,095 4,095 Total 30,714
Slide 9: Balance Sheet
Balance Sheet 000's 2003 HY 2002 FY 2002 HY Half Year Current Cash Assets & Liabilities 3,442 5,249 6,133 30 June Receivables 59,317 59,708 66,515 2003 Inventories Payables 49,390 (42,909) 47,797 (49,383) 59,210 (53,284) Borrowings (40,058) (10,048) (20,048) Provisions (11,374) (10,412) (10,614) Oth
Slide 10: Operating Working Capital Performance
Operating Working Capital Performance (excluding Borrowings, Cash & Taxation) 000's 2003 HY 2002 FY 2002 HY Current Assets Receivables 59,317 59,708 66,515 Inventories 49,390 47,797 59,210 Other Current Assets 2,484 3,361 2,092 Current Liabilites Payables (42,909) (49,383) (53,284) Other Provisions
Slide 11: Cash Flow
Cash Flow Half Year 30 June 2003 000's 2003 HY 2002 FY 2002 HY Net Cash Inflow /(Outflow) from Operating Activities (4,633) 45,652 15,859 Cash Flows from Investing Activities Capital Expenditure (28,632) (41,051) (14,624) Proceeds from Sale of PP&E 514 19,050 1,169 Payments for Intangible Assets 0 (
Slide 12: Funding Arrangements
Funding Arrangements Bremer Park and Campbellfield 5 Yr Term Facility • 5 year term facility with ANZ $49m (export guaranteed portion) • Backed by export credit guarantees Hermes/SACE • Major equipment suppliers SMS Eumuco Trevisan Cometal Engineering 3 Yr Core Facility ANZ • Commercial bill facilit
Slide 13: CAPEX
CAPEX Bremer Park and Campbellfield Budget Spent To Spend Bremer Park $76.4m $39.8m $36.6m Campbellfield $17.1m $11.0m $6.1m Total $93.5m $50.8m $42.7m Page 13
Slide 14: The Capral Employee's focus is Execution of the Business Plan
The Capral Employee’s focus is Execution of the Business Plan Page 14
Slide 15: Objective
Objective • Reduce Costs • Improve Service • Improve Flexibility Page 15
Slide 16: Cost Reduction
Cost Reduction Lever Progress Completion Target One System All sites completed October 2003 $2m p.a. except NSW saving by Distribution 2005 Warehousing •Campbellfield •Victoria and NSW by $6m p.a. Overhead construction Jan 2004 saving by commenced •Queensland by 2005 •Homebush Sold December 2004 Cor
Slide 17: Improve Service
Improve Service • One System – move from 4 business systems to 1 • Introduction of Advanced Planning & Optimisation to give end-to-end visibility through the supply chain • Warehouse and Stock consolidation – reduces complexity and damage • Improved freight arrangements through Capral operated hubs
Slide 18: Improved Flexibility
Improved Flexibility • Modernised plant allows Capral to meet market demand shifts • Reduced warehouse and overhead improves bottom of cycle performance • Additional capacity can be added at marginal cost and modest capital Page 18