Capral Limited · ASX:CAA
Capral — H1 2011 Earnings Presentation
13 slides from Capral's earnings presentation, Aug 19, 2011
Slide 1: 2011 Half Yearly Results Presentation
2011 Half Yearly Results Presentation 19th August 2011 CAPRAL LIMITED 1 19TH AUGUST 2011 CAPRAL HALF YEARLY RESULT
Slide 2: Capral Highlights
CAPRAL HIGHLIGHTS SIX MONTHS TO JUNE 2011 • Achieved in a declining market ... EBITDA¹ profit of $5.8m • Anchored by substantial and ongoing cost savings ... Net loss of $1.3m • Impacted by contractual purchases of excess billet ... $1.0m Operating cash outflow of $6.8m in the first half. Forward or
Slide 3: Financial Summary
FINANCIAL SUMMARY SIX MONTHS TO JUNE 2011 H1 H1 H1 2011 % 2010 2009 Sales Volumes - External (‘000 tonnes) 24.5 (14.0) 28.5 24.7 Sales Revenue 179.5 (12.2) 204.5 177.0 EBITDA 5.8 (28.2) 8.4 (9.6) Depreciation/Amortisation (6.1) (1.7) (6.0) (8.5) EBIT (0.3) - 2.3 (18.1) Net Interest (1.0) 15.2 (1.2)
Slide 4: Key Profit Drivers
KEY PROFIT DRIVERS PROJECT RELAUNCH COST SAVINGS AGAIN PLAYED A CRITICAL ROLE MITIGATING NEGATIVE VOLUME, PRICE AND INFLATION IMPACTS EBITDA $m $8.4m ($4.6m) 8 6 $0.4m $5.8m $4.8m 4 ($2.8m) 2 ($2.7m) $1.6m $0.2m 0 $0.6m -2 EBITDA 1H10 Volume Price Inflation Billet Equity LME & Stock Project Other EB
Slide 5: Efficiency and cost cutting initiatives have significantly reduced the fixed cost base
EFFICIENCY AND COST CUTTING INITIATIVES HAVE SIGNIFICANTLY REDUCED THE FIXED COST BASE OF THE BUSINESS The EBITDA1 break even of the business has reduced by 35% TONNES PER DAY 300 Underlying costs have been reduced in excess 293 of $25m PA over the 2008 base. 281 Highlights • Employee head count has
Slide 6: Capral's Cash Position Is In Good Shape
CAPRAL’S CASH POSITION IS IN GOOD SHAPE $m $m June 11 June 10 EBITDA 5.8 8.4 Working Capital (Normalised) (2.0) (1.8) Underlying Operating Cash Net Interest (1.0) (1.2) Flow remains positive Equity Compensation Amortisation Other 0.5 2.5 2.1 2.5 Underlying Cash Flow 5.8 10.0 Less: Additional Log Sto
Slide 7: The Aluminium Extrusion Market Is Forecast to Fall by ~10% in Calendar 2011
THE ALUMINIUM EXTRUSION MARKET IS FORECAST TO FALL BY ˜10% IN CALENDAR 2011 000 Tonnes ALUMINIUM EXTRUSION MARKET PA 200 200 Impacted by • Queensland flooding and severe weather events in -23% the Eastern States in Q1 183.3 175 • Declining consumer sentiment impacting market 170.6 -10% 165.2 activit
Slide 8: Decline in Housing Approvals Has Flowed Through to the Aluminium Extrusion Market
THE DECLINE IN HOUSING APPROVALS HAS FLOWED THROUGH TO THE ALUMINIUM EXTRUSION MARKET Seasonally adjusted dwellings Aluminium Extrusion market by quarter 2011 vs 2010 approved MONTHLY PER QUARTER UNITS ‘000 TONNES 17000 46 16000 44 2010 Actuals 15000 42 (6.6%) (14.1%) (12.7%) (6.4%) 14000 40 TREND 1
Slide 9: Anti Dumping Update
ANTI DUMPING UPDATE • In October 2010 the Trade Measures Branch of the Australian Customs Department imposed anti dumping and countervailing duties on certain aluminium extrusions from China • But the level of measures was low X ~6% for major exporters compared to the USA and Canada of ~33% • The de
Slide 10: The Turnaround Strategy Is Delivering
THE TURNAROUND STRATEGY IS DELIVERING • Stabilise the Business - Recapitalise the Balance Sheet - Embed a new operating philosophy The First Phase has been completed - Implement a lean management structure with increased accountability - Realise significant cost savings - Launch an Anti-Dumping Case
Slide 11: Outlook
OUTLOOK • Capral has a strong balance sheet and renewed lines of finance in place • Project Relaunch is continuing to deliver operational improvements and cost savings • Progress is being made on increasing market share in the Distribution segment coupled with the introduction of new products • Indu
Slide 12: Appendix 1 – Capral Profile
APPENDIX 1 – CAPRAL PROFILE • Australia’s largest manufacturer and distributor of aluminium profiles • A National footprint of world class extrusion plants 8 operating presses with annual capacity of 75KT • A network of 5 major distribution facilities, 6 regional centres and 12 metropolitan trade ce
Slide 13: Appendix 2 – Safety Is a Core Value in Capral
APPENDIX 2 – SAFETY IS A CORE VALUE IN CAPRAL • Nationally, achieved 5 months LTI free • Bremer Park: Manufacturing achieved 6 months LTI free and Distribution Centre achieved 18 months LTI free • Canning Vale and Campbellfield Manufacturing achieved 2 years LTI free • QLD and NSW Aluminium Centres