Slide 1: Capral Limited (ASX:CAA) Full Year 2020 Results
25 February 2021 Capral Limited (ASX:CAA) Level 4, 60 Phillip Street Parramatta NSW 2150 Approved and authorised by Capral’s Board of Directors
Slide 2: 6 plants; 9 extrusion presses; 18 distribution centres
6 plants; 9 extrusion presses 18 distribution centres Australia-wide Annual extrusion capacity 65k tonnes Annual turnover ~$432 million¹ Residential & commercial construction, industrial Over 800 employees 2 ¹ 12 months to 31 Dec 2020
Slide 3: FY20 Highlights, Financials, Strategy and Outlook, Questions
1. FY20 Highlights 2. FY20 Financials 3. Strategy and Outlook 4. Questions
Slide 4: Full year earnings ahead of guidance, very strong second half
“Full year earnings ahead of guidance, very strong second half profit and cash flow, and continuation of dividend” 4
Slide 5: Full year result ahead of latest guidance
▪ Full year result ahead of latest guidance − Trading EBITDA¹ of $19.7m (FY19: $11.0m) and EBITDA of $47.2m (including JobKeeper: $11.9m)(FY19: $19.9m) − 2H20 Trading EBITDA1 of $13.9m due to strong sales performance, improved operating leverage and savings realised from business initiatives − Volum
Slide 6: Capral continued to operate throughout COVID restrictions
Capral continued to operate throughout the period of COVID restrictions. A number of initiatives were implemented to safeguard employees and the business: ▪ Strict range of protocols for hygiene, cleaning, social distancing and COVID risk plans at all sites ▪ Business travel curtailed and restrictio
Slide 7: Volume, Seasonality, Industry exposure, Channels to market
Channels to market (volume) Diverse industry exposure Volume Seasonality Tonnes (000’s) 40 16% 13% 35 30 28% 56% 42% 45% 25 20 15 10 5 0 Source: Capral 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 * Residential building includes additions and alterations DC: Capral Distribut
Slide 8: Annual Dwelling Commencements
Annual Dwelling Commencements (‘000) 2020 ▪ Capral’s volume in the residential market is mainly aligned with Detached 250 and Low-Rise Dwellings (shaded green in graph) ▪ Residential commencements declined significantly through 1H20 but bounced back in 2H20 on the back of low interest rates, HomeBui
Slide 9: Commercial and residential project examples
MLC Nicholas Learning Centre, Kew VIC San Clemente High School, Mayfield NSW Capral Architectural Glazing System Won the Master Builders Association Newcastle Excellence in Building Award ECU Science Building, Joondalup WA Private Residence, South-West WA Capral sheet used on periodic table facade C
Slide 10: Total Capral Industrial Volumes and New Truck and Van builds
Total Capral Industrial Volumes (Index 2012) New Truck and Van builds¹ (‘000) 120 45 40 100 35 80 30 25 60 20 40 15 10 20 5 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Capral ¹ Source: TIC (Truck Industry Council of Australia) (Prim
Slide 11: Marine and industrial project examples
Woonbalu – Cordina Marine, WA Fred Olsen Express – Austal, WA Capral Plate & Extrusions Capral Plate & Extrusions Connect South Canopies, South Perth, WA Capral Sheet & Plate Winner of the 2020 Iwan Iwanoff Award For Small Project Architecture Arends Trailers, Murray Bridge, SA Capral Plate & Extrus
Slide 12: Earnings strong in second half, excellent cash flow
“Earnings strong in second half, with excellent cash flow due to improved debtor collections and lower inventory levels” 12
Slide 13: FY20 volume 8% higher than prior year
FY20 volume 8% higher than prior year. 2H20 volume 14% stronger than 2H19 FY20 FY19 Sales revenue increase driven by higher volume, partially offset by impact on sales price Sales Volume ('000 tonnes) 61.0 56.7 due to lower LME $m $m Trading EBITDA increased significantly on the back of buoy
Slide 14: Balance Sheet
BALANCE SHEET DEC ’20 DEC ’19 $m $m Inventory consists mainly of raw material (billet) and finished goods (rolled Current Assets Inventory 79.1 78.9 product and extrusion). Reduction in inventory on hand offset by increase in Trade Receivables 66.3 62.6 goods in transit ($4.1m) due to shipping
Slide 15: Working capital reduction driven by debtor collections
CASH FLOW FY20 FY19 $m $m Working Capital reduction primarily driven by excellent debtor collections EBITDA 47.2 19.9 Working Capital 10.5 (3.6) at Year End Finance Cost (5.5) (5.6) Operating Cash Flow 52.2 10.7 Operational interest charge in line with FY19, balance of finance cost is intere
Slide 16: Optimise: What we do
“Deliver benefits from capital and resourcing investments to further improve Capral’s long term competitive position" OPTIMISE What we do 16
Slide 17: Manufacturing, Distribution and Market Development
Manufacturing Focus on delivering benefits of Smithfield extrusion capacity acquisition Continuation of process improvement programmes at Bremer Park and other sites Selective maintenance capital spend to ensure on-going plant reliability and efficiency Distribution Improvements in market offer and
Slide 18: Anti-Dumping Activities
Anti-Dumping Activities Aluminium Price ► Original case won in 2010 with low level duties imposed on Chinese imports ► Reforms to federal legislation and methodology A$/kg Metal Cost ► Measures imposed against all Vietnam and some Malaysian sourced extrusions 3.30 2010 to 2019 ► Anti-circumvention /
Slide 19: Working with Government to strengthen anti-dumping measures
▪ LME¹ is forecast to be at higher levels throughout 2021 ▪ AUD weakened to ~$US0.67 early in 2020 but recovered to $US0.77 at year end. It is forecast to remain at that level through 2021² ▪ Residential commencements are expected to recover to around 185,000 units in 20213. The recovery is led by d
Slide 20: Capral has a national footprint with a presence in every state
Capral has a national footprint with a presence in every state and extrusion plants near five mainland capital cities Distribution Centres 4 Bremer Park manufacturing plant Queensland 20 ► 1 Cairns AC ► Capacity 30k tonnes* Darwin ► 2 Townsville RDC / AC ► 4 presses (1 moth balled) ► 3 Sunshine Coas
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