Slide 1: Full Year Results Presentation and Earnings Guidance
2021 Full Year Results Presentation and Earnings Guidance 25 February 2022 Capral Limited (ASX:CAA) 15 Huntingwood Drive Huntingwood NSW 2148 Approved and authorised by Capral’s Board of Directors
Slide 2: Australia's Leading Supplier of Aluminium Products and Solutions
AUSTRALIA’S LEADING SUPPLIER OF ALUMINIUM PRODUCTS AND SOLUTIONS 6 PLANTS 8 DISTRIBUTION CENTRES ANNUAL EXTRUSION CAPACITY 8 EXTRUSION PRESSES¹ 12 TRADE CENTRES 65,000 TONNES ANNUAL TURNOVER MARKET SHARE MARKETS - OVER ~$600 ~26% RESIDENTIAL & COMMERCIAL 1,000 CONSTRUCTION, EMPLOYEES² MILLION INDUST
Slide 3: Agenda
AGENDA 1. FY21 Highlights 2. FY21 Financials 3. Strategy 4. Outlook & Guidance
Slide 4: FY21 Highlights
FY21 HIGHLIGHTS Tony Dragicevich, CEO & Managing Director “Record year driven by strong demand from all key market segments”
Slide 5: FY21 Performance Highlights
FY21 PERFORMANCE HIGHLIGHTS RECORD FULL YEAR RESULT – SLIGHTLY ABOVE GUIDANCE Volume up 25% on FY21 to 76,300 tonnes FY21 Trading EBITDA1 FY21 EBITDA1 $38.2m $59.2m Sales Revenue $593m (FY20: $19.7m) (FY20: $47.2m) (FY20: $432m) Normalised² Earnings Per Share at Final dividend $1.80 50 cps Strong ba
Slide 6: Volume Breakdown and Growth
VOLUME BREAKDOWN AND GROWTH Channels to market (volume) Diverse industry exposure Volume Seasonality Tonnes (000’s) 45 15% 11% 40 35 30 42% 25 26% 26% 59% 20 15 47% 10 5 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 Extruded Aluminium (direct from mill) Industrial Residenti
Slide 7: Residential Market Grew Strongly
RESIDENTIAL MARKET GREW STRONGLY Annual Dwelling Commencements¹ (000’s) 2021 250 Latest estimate¹ 233,400 starts in 2021 up 25% on 2020 200 Residential starts rose Detached dwellings strongly, assisted by; up by 27% - low interest rates 150 - HomeBuilder and State government Multi-res incentives up
Slide 8: Recent Capral Residential & Commercial Projects
RECENT CAPRAL RESIDENTIAL & COMMERCIAL PROJECTS Seaview House, Middleton, SA Sarah Sands Apartments, Brunswick, VIC Schüco windows and bi-fold doors Capral commercial sliding doors and framing systems Burwood Brickworks, Burwood East, VIC McDonalds, Perth, WA 8 Capral commercial double glazed framin
Slide 9: Industrial Sector Rebounding Strongly
INDUSTRIAL SECTOR REBOUNDING STRONGLY Total Capral Industrial Volumes (Index 2012) New Truck and Van Builds (000’s) 45 150 40 100 35 30 50 25 20 0 15 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 10 Source: Capral 5 Marine Manufacturing & 0 Steady market conditions General Fabrication 2012 2013
Slide 10: Recent Capral Industrial Projects
RECENT CAPRAL INDUSTRIAL PROJECTS Incat, TAS Arends Trailers, SA Wave piercing catamaran. Route: Malta to Sicily Combination tipper unit Con-form, VIC Les Stagg Oval Proserpine, QLD 10 Capral Con-form rafter mounted platform Capral seating system
Slide 11: FY21 Financials
FY21 FINANCIALS Tertius Campbell, CFO “Record earnings driven by a combination of higher volume, robust margins, and operating leverage” 11
Slide 12: Record Earnings
RECORD EARNINGS FY21 FY20 FY21 volume 25% higher than prior period Sales Volume ('000 tonnes) 76.3 61.0 Sales revenue increased 37%, driven by volume and higher metal prices (LME) $m $m EBITDA up by 32% on FY20 Sales Revenue 593.3 432.0 Depreciation on owned assets increased due to acqui
Slide 13: Robust Financial Position That Supports Dividends and Reinvestment
ROBUST FINANCIAL POSITION THAT SUPPORTS DIVIDENDS AND REINVESTMENT BALANCE SHEET DEC 21 DEC 20 $m $m Inventory (raw material and finished goods) increased due to; activity Current Assets levels, increased metal prices (LME), and higher goods in transit Inventory 130.5 79.1 Trade Receivables 96
Slide 14: Strong Cash Earnings Offset by Higher Working Capital Requirements and Business Acquisition
STRONG CASH EARNINGS OFFSET BY HIGHER WORKING CAPITAL REQUIREMENTS AND BUSINESS ACQUISTION CASH FLOW FY21 FY20 $m $m Working Capital increase driven by increased debtors and inventory due to EBITDA1 59.2 47.2 rising sales levels and higher metal cost (LME) Working Capital (12.2) 10.5 Finance Cos
Slide 15: Strategy and Outlook
STRATEGY AND OUTLOOK Tony Dragicevich, CEO & Managing Director “Drive return on recent investments and keep improving our long-term competitive position“ BUILD OPTIMISE GROW on our what we for the strengths do future
Slide 16: Improve Productivity and Competitiveness, Retain Share Gains
IMPROVE PRODUCTIVITY AND COMPETIVENESS, RETAIN SHARE GAINS Manufacturing Distribution Sales • Deliver benefits of Smithfield plant • Release Capral’s new window & door • On-going technology investment to acquisition, aim to run at capacity 2Q22 product range and systems software improve sales effect
Slide 17: On a Path to a Better Tomorrow: Our Roadmap
ON A PATH TO A BETTER TOMORROW OUR ROADMAP • Active sustainability committee. • Net Zero by 2050 (Scope 1 and 2 emissions) • Drive sustainability best practice throughout business • Underpinned by a commitment to the United Nations Sustainability Development Goals Progress made - Capral’s extrusion
Slide 18: Key Industry Influencing Trends
KEY INDUSTRY INFLUENCING TRENDS Anti-Dumping Activities Aluminium Price (LME & MJP) Original case won in 2010 with low level duties imposed on Chinese imports A$/kg Metal Cost Reforms to federal legislation and methodology Measures imposed against all Vietnam and some Malaysian imports 4.50 20
Slide 19: Outlook and Earnings Guidance
OUTLOOK AND EARNINGS GUIDANCE ▪ Early in 2022 Capral’s operations were mildly impacted by COVID-related labour shortages ▪ Residential building is forecast2 to remain buoyant during 2022 with a high level of work in the pipeline ▪ Other key markets, Commercial and Industrial, are also expected to re
Slide 20: Questions
CAPRAL 2021 FULL YEAR RESULTS QUESTIONS
Slide 21: Strategic National Footprint
STRATEGIC NATIONAL FOOTPRINT CAPRAL HAS A NATIONAL FOOTPRINT WITH A PRESENCE IN EVERY STATE AND EXTRUSION PLANTS NEAR FIVE MAINLAND CAPITAL CITIES RDC – Regional Distribution Centre AC – Aluminium Centre Distribution Centres 4 Bremer Park manufacturing plant Queensland 20 ► Capacity 30k tonnes 1 ► C