Slide 1: 2022 Full Year Results Presentation and Earnings Guidance
2022 Full Year Results Presentation and Earnings Guidance 24 February 2023 Capral Limited (ASX:CAA) 15 Huntingwood Drive Huntingwood NSW 2148 Approved and authorised by Capral’s Board of Directors
Slide 2: Our Business at a Glance
OUR BUSINESS AT A GLANCE AUSTRALIA’S LEADING SUPPLIER OF ALUMINIUM EXTRUSION AND ROLLED PRODUCTS ANNUAL TURNOVER ~$690 #1 EXTRUSION MILLION MANUFACTURER 6 PLANTS KEY MARKETS: RESIDENTIAL #1 SUPPLIER OF 8 EXTRUSION PRESSES COMMERCIAL CONSTRUCTION INDUSTRIAL ALUMINIUM EXTRUSION 65,000 TONNES OF INDUST
Slide 3: Agenda
AGENDA 1. FY22 Highlights 2. FY22 Financials 3. Strategy 4. Outlook & Guidance
Slide 4: Full Year Highlights
FULL YEAR HIGHLIGHTS Tony Dragicevich, CEO & Managing Director “Record full year underlying earnings driven by; - improved sales mix from growth in high value sales channels - higher productivity from investments in manufacturing”
Slide 5: FY22 Performance Highlights
FY22 PERFORMANCE HIGHLIGHTS RECORD FULL YEAR RESULT Underlying EBITDA1&2 Volume lower than FY21 at 6% Sales Revenue 17% (excluding rent) 10% 71,800 $693m $62.2m tonnes (FY21: $593m) (FY21: $56.4m) (FY21: 76,300t) driven by record high LME driven by improved sales mix & margin 13% Underlying EPS² Und
Slide 6: Sales Channels and Industry Exposure
SALES CHANNELS AND INDUSTRY EXPOSURE Channels to Market (volume) Diverse Industry Exposure Volume Seasonality Tonnes (000s) 45 15% 11% 40 35 43% 30 29% 56% 25 46% 20 15 10 5 Extruded Aluminium (Direct from Mill) Industrial 0 Extruded Aluminium (via DCs) Residential Building 1H15 2H15 1H16 2H16 1H17
Slide 7: Residential Market Slowed and Pipeline Reducing
RESIDENTIAL MARKET SLOWED AND PIPELINE REDUCING 2022 Annual Dwelling Commencements¹ (000’s) 250 Latest estimate¹ 190,000 starts in 2022, down 18% on 2021 • Residential starts impacted by: 200 - - Higher interest rates - - Removal of government incentives • Detached dwellings down by 20% • Multi-res
Slide 8: Recent Capral Residential & Commercial Projects
RECENT CAPRAL RESIDENTIAL & COMMERCIAL PROJECTS Concrete House, ACT The Log Cabin, NSW Fabricator: ViewCo Fabricator: Arch-System Fabrication Pty Ltd Products: Schuco Windows and Doors Products: Capral Commercial Windows and Doors The Tasman Parliament Square, TAS Annie Hughston Centre, Fintona Girl
Slide 9: Industrial Sector Slowed in 2H22 but Remains Strong
INDUSTRIAL SECTOR SLOWED IN 2H22 BUT REMAINS STRONG Total Capral Industrial Volumes (Index 2012) Transport sector remains strong 160 • New truck builds posted record year, up 7% on 2021 140 • Government stimulus assisted sector recovery 120 (instant asset write-off) 100 • Strong grain season and sec
Slide 10: Recent Capral Industrial Projects
RECENT CAPRAL INDUSTRIAL PROJECTS Les WillPlay, Playground Equipment, Tallebudgera QLD HSP, Ute Lids and Canopies VIC Kirby Marine, Recreation Vessel Vawdrey Australia, Truck Body Builder VIC 10
Slide 11: Full Year Financials
FULL YEAR FINANCIALS Tertius Campbell, CFO “Improved underlying earnings performance despite softening in volume”
Slide 12: Record Full Year Earnings
RECORD FULL YEAR EARNINGS Volume 6% lower than FY21 FY22 FY21 Sales Revenue increased 17% on FY21, driven by high metal prices (LME) Sales Volume ('000 tonnes) 71.8 76.3 Underlying EBITDA up by 10% on FY21, primarily due to improved sales mix and margin $m $m Depreciation on owned assets i
Slide 13: Sound Financial Position That Provides Capacity for Dividends and Growth Investment
SOUND FINANCIAL POSITION THAT PROVIDES CAPACITY FOR DIVIDENDS AND GROWTH INVESTMENT BALANCE SHEET DEC 22 DEC 21 Inventory increased due to rebuild from low levels, high rolled stocks, and record high metal Current Assets $m $m prices (LME) Inventory 154.9 130.5 Trade Receivables 91.3 96.3 Re
Slide 14: Strong Cash Earnings Offset by Higher Working Capital Requirements
STRONG CASH EARNINGS OFFSET BY HIGHER WORKING CAPITAL REQUIREMENTS DUE TO RECORD HIGH METAL COSTS (LME) CASH FLOW FY22 FY21 Continued strong focus on cash management. Cash conversion ratio $m $m lower due to increase in working capital but will improve as working EBITDA1 60.0 59.2 capital levels nor
Slide 15: Strategy and Outlook
STRATEGY AND OUTLOOK Tony Dragicevich, CEO & Managing Director “Drive return on recent investments and keep improving our long-term competitive position“ BUILD OPTIMISE GROW on our what we for the strengths do future
Slide 16: Improve Productivity and Competitiveness, Retain Market Share Gains
IMPROVE PRODUCTIVITY AND COMPETIVENESS, RETAIN MARKET SHARE GAINS Manufacturing Distribution Sales • Continue process improvement • Capral’s new window & door product • On-going technology investment to programmes at all extrusion plants range and systems software released improve sales effectivenes
Slide 17: On a Path to a Better Tomorrow
ON A PATH TO A BETTER TOMORROW OUR ROADMAP Identify and implement strategies and processes to minimise • Active sustainability committee. the use of energy and develop sources of renewable energy • Net Zero by 2050 (Scope 1 and 2 emissions) Reduce how much waste is going to landfill by reuse, • Driv
Slide 18: Metal Cost at Record Highs
METAL COST AT RECORDS HIGHS Aluminium Price $A (LME & Premiums) Average Premiums increased 89% during 2022, due to significant increase in smelter billet premiums 5.00 Average LME increased 22% during FY22 to $A3,900t due to high global demand 4.00 1 The international LME price was impacted
Slide 19: Outlook and Earnings Guidance
OUTLOOK AND EARNINGS GUIDANCE ▪ Residential building is forecast1 to remain on par with 2022, but with a reducing pipeline of work ▪ Other key markets; Commercial and Industrial, are expected to remain at relatively high levels ▪ Reseller volumes will remain subdued as import supply chains normalise
Slide 20: Questions
QUESTIONS ALUMINIUM
Slide 21: Strategic National Footprint
STRATEGIC NATIONAL FOOTPRINT CAPRAL CAPRALHAS HASAA NATIONAL FOOTPRINT NATIONAL FOOTPRINTWITH WITHA A PRESENCE PRESENCEININ EVERY EVERYSTATE STATEAND AND EXTRUSION PLANTS NEAR FIVE MAINLAND CAPITAL CITIES EXTRUSION PLANTS NEAR FIVE MAINLAND CAPITAL CITIES RDC – Regional Distribution Centre AC – Alum