Slide 1: Analyst Presentation 2005 Full Year Results
CAPRAL ALUMINIUM Analyst Presentation 2005 Full Year Results Year Ended 31 December 2004
Slide 2: 2004 Issues
2004 Issues Capacity Bremer Delays Market Dynamics Product / Price Mix
Slide 3: Capacity
Capacity Minto closure — too early Qtr 4 capacity impacted Transition plan not well managed Mitigation plans in place for 2005 2
Slide 4: Bremer Delays
Bremer Delays ¢ Software issues impacted production ¢ Commissioning issues with Packaging lines and Aging Ovens ¢ Recruitment and training has been more complex than anticipated Wy il oa.
Slide 5: Market Dynamics
Market Dynamics ¢ Imports continued to take market share ¢ LME increased in 2004 — time lag between cost increase and price recovery ¢ Import volume led to aggressive domestic pricing aie
Slide 6: Product / Customer Mix
Product / Customer Mix ¢ Sales mix skew towards lower margin larger customers ¢ Finishing margins low ¢ Capacity constraints resulted in stock outs in trade centres and warehouses
Slide 7: Appoint CEO
Appoint CEO Complete Bremer East Coast closures Manage customer expectations Achieve budget milestones UI
Slide 8: Appoint CEO: search status
anise ¢ Search agency appointed ¢ Long list being reviewed ¢ Anticipate appointment by June 05
Slide 9: Complete Bremer
Complete Bremer B1 and B2 presses operational by May 05 ¢ Anodising — March 05 * 2°¢ paintline — March 05 ¢ Warehouse — progressively commissioned through to May 05 * Operational management separated from project management * Recruitment and training program — completed by June 05
Slide 10: East Coast Closures
East Coast Closures ¢ Eagle Farm — closure extended to June 05 ¢ Milperra — phased closure between April 05 — June 05 ¢ Murrarie — closure complete by Feb 05 | Nn Po -9
Slide 11: Manage Customer Expectations
Manag Cus omer Expectations ¢ 18t Half 05 — DIFOT improvement ¢ 2" Half 05 — begin to capitalise on the “Bremer service opportunity” ‘be WI CARE GR
Slide 12: Achieve Budget Milestones
Achieve Budget Milestones ¢ Prudent budget has been set for 2005 ¢ Critical for Capral to deliver on it’s 2005 financial targets ¢ Company wide focus page 1 Ml)
Slide 13: The Future - A New Capral
The Future - A New Capral Regional company structure Three manufacturing plants Complete service offering Systems driven Customer focus Step outs : nie .
Slide 14: East Coast extrusion market mostly imported
Focussing on the East Coast market, the majority of extrusions are imported (~64,000 tonnes per annum) Australian East Coast Extrusion Market by Manufacturer East Coast 150,000 125,000 Imports 2 100,000 3 r Almax 75,000 Crane 50,000 G James 25,000 Capral - Other 0 Capral Lge (ULES CARA
Slide 15: Earnings Summary - Full Year December 2004
Earnings Summary - cut year December 2004 000s _ 2004 | 2003 Revenue from operating activities 356,837 382,321 Revenue from outside the operating activities 4,306 22,120 Total Revenue 361,143 404,441 EBITDA (30,222) 5,103 D&A (12,412) (12,173) EBIT (42,634) (7,070) Interest Expense (726) (595) (Loss
Slide 16: Underlying Performance - Full Year December 2004
Underlying Performance - Fut year pecember 2004 Revenue from operating activities Sales Revenue Australia - core business Other (primarily scrap sales) EBIT Significant non operating items : Profit on sale of property, plant & equipment Restructuring cost Underlying EBIT performance Better / (Worse)
Slide 17: Restructuring Cost
: b il MY SN Restructuring Cost Redundancies Bremer Operational Readiness Additional Rent Industrial Press Dies Other 2,403 1,197 1,246 0 992 0 669 512 20,041 6,114
Slide 18: Year over Year EBIT - Full Year December 2004
Year over Year EBIT — Full Year December 2004 000s Underlying EBIT FY 03 (3,323) Underlying EBIT FY 04 (23,302) EBIT Variance (19,979) Volume/Mix (12,872) Bremer Manufacturing Variance (4,481) Campbelifield Manufacturing Variance (5,230) Overhead Reduction & Other Items 2,604 (19,979) A, Pn
Slide 19: Volume by Segment
i Pa ag) ba I) age 18 He I) Volume by Segment 03 vs 04 Capacity constraints in Q4 Industrial distributors volume was steady Supply chain issues resulted in stock outs Strong A$ impacted export volume Architectuat Industrial Automotive ‘Trade Centre
Slide 20: Bremer Park - Extrusion
Bremer Park - Extrusion Extrusion Volume & Unit Costs 2005 - 2006 42000 mame Volume - Tons Unit Cost $/kg 10000 000 6000 Tons 4000 2000 a1 05 Q2 05 Qs 05 Q4 '05 Qt 06 2 06 Q3 '06 24 06 * Q2 2005 - Presses B1 & B2 operational * Q3 2005 - All presses on 6 day 24 hrs pw roster (p by EN * Q2 2006 — Clos
Slide 21: Overhead Analysis - Full Year December 2004
Ove rhead Analysis ~— Full Year December 2004 Warehouse Overheads Selling Expenses 28,836 31,751 Information Technology 8,708 8,703 Corporate Overheads 11,324 13,006 | HI) il | CARR Ak
Slide 22: Headcount - Full Time Equivalents
page 22 Headcount — Full Time Equivalents Corporate Manufacturing Western Australia Sales Total To exit on closure: Milperra Eagle Farm Murrarie 640 744 107 108 156 216 958 1,134 65 (all) 128 (most) 34 (most)
Slide 23: Balance Sheet 31 December 2004
000's 2004FY | 2003 FY Current Assets & Liabilities Cash 1,388 2,646 Receivables 52,989 61,687 Full Year Inventories 43,461 48,132 31 December 2004 payabies (57,772)| (64,274) Borrowings (26,121) (10,881) Provisions (2,801) (3,656) Other 4,928 4,313 Total 16,072 47,967 Long Term Assets & Liabilities
Slide 24: Cash Flow - Full Year December 2004
Cash Flow — Full Year 31 December 2004 : 000s. 2004 FY. 2003 FY. Net Cash (Outflow) from Operating Activities (20,191) (2,652) Cash Flows from Investing Activities Capital Expenditure (39,324) (64,977) Proceeds from Sale of PP&E 3,452 19,720 Payments for Intangible Assets/Investments 0 (2,000) Other
Slide 25: Operating Working Capital Performance
Operating Working Capital Performance Mi | Page 25 me (excluding Borrowings, Cash & Taxation) Current Assets Receivables Inventories Other Current Assets Current Liabilities Payables Other Provisions Operating Working Capital Movement-— Year on Year Decrease/(Increase) 000’s - 2004FY | 2003FY | 2002
Slide 26: Major Capex Projects 2002-2004 - summary
Major Capex Projects 2002-2004 - summary ‘boa Nt CARR GL $m Total Spent | Still to to 31/12/04 | Spend Bremer Park 88.0 93.3 3.0 | Capital Payments (3.5) Still to be received (0.5) Campbelifield 21.8 21.7 0.1 Re realaans One System 8.0 8.7 0 117.8 123.7 (0.4)