Capral Limited · ASX:CAA
Capral — H1 2016 Earnings Presentation
11 slides from Capral's earnings presentation, Aug 23, 2016
Slide 1: Half Year Results Presentation 2016
2016 HALF YEAR RESULTS PRESENTATION 23 AUGUST 2016 CAPRAL LIMITED 1 23 AUGUST 2016 CAPRAL HALF YEAR RESULTS
Slide 2: General Information
GENERAL INFORMATION Important Notes Darwin This presentation includes forward-looking estimates that are subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly. Cairns Townsville Trading EBITDA is the Statutory EBITDA adjusted for Mackay signific
Slide 3: Overview of Results
OVERVIEW OF RESULTS SIX MONTHS TO JUNE 2016 $10.0m Trading EBITDA1 • Trading EBITDA1 of $10.0m (2015: $4.1m) • EBITDA of $10.2m (2015: $2.6m) $10.2m EBITDA in first half • Volumes up 15% on H1 2015 • Strong housing market driving volume increase Net Profit of $6.8m • Net Profit after tax of $6.8m (2
Slide 4: Financial Summary
FINANCIAL SUMMARY SIX MONTHS TO JUNE 2016 H1 H1 2016 2015 Sales Volume (‘000 tonnes) 31.5 27.4 $m $m Sales Revenue 210.2 194.7 Trading EBITDA¹ 10.0 4.1 LME Revaluation² 0.4 (1.2) Other one off costs² (0.2) (0.3) EBITDA 10.2 2.6 Depreciation/Amortisation (2.9) (3.5) EBIT 7.3 (0.9) Finance Cost (0.5)
Slide 5: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG $m $m 6 months to Jun 16 Jun 15 EBITDA 10.2 2.6 Positive operating cash flow Working Capital (5.9) (10.0) driven by improved earnings Finance Cost (0.5) (0.6) Equity Compensation Amortisation (0.1) 0.3 Other (0.2) 0.1 Operating Cash Flow 3.5 (7.6) Capex Spend (1.7) (1.6)
Slide 6: Metal Costs Have Remained Stable in 2016
METAL COSTS HAVE REMAINED STABLE IN 2016 A$/kg Metal Cost (AUD - Quarterly Average) 3.00 2.50 2.00 • Metal costs reached multi-year highs in H1 2015 but collapsed during the second half of 2015 1.50 • Metal costs in H1 2016 have been stable with a small increase expected in H2 1.00 0.50 0.00 Q1 Q1 Q
Slide 7: Residential Construction Driving Strong Market
RESIDENTIAL CONSTRUCTION DRIVING STRONG MARKET RECOVERY STARTED IN 2013. VERY STRONG MULTI-RES. MONTHLY DWELLING APPROVALS AND DETACHED ANNUAL DWELLING ANTICIPATED TO GROW AT SLOWER PACE THROUGH 2016 QUARTERLY DWELLING COMMENCEMENTS COMMENCEMENTS ‘000 225 220 MONTHLY UNITS 213 22,000 200 20,000 181
Slide 8: Aluminium Extrusion Demand Has Recovered
ALUMINIUM EXTRUSION DEMAND HAS RECOVERED FROM CYCLICAL LOW LEVELS AND IS EXPECTED TO REMAIN STRONG ‘000 • Extrusion Market in 2016 has grown and is expected Tonnes ALUMINIUM EXTRUSION MARKET SALES VOLUME to remain at these levels through 2017 due to the PA 200 pipeline of residential work 200 Foreca
Slide 9: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES • Widest aluminium product offer BUILD • Large scale extrusion capability On our strengths • National distribution network • Committed and experienced people • Continue to reduce cost base OPTIMISE • Lean manufacturing drive to world class productivity What we do • Optimise
Slide 10: Anti-Dumping Measures Having a Positive Impact
ANTI-DUMPING MEASURES HAVING A POSITIVE IMPACT The impact of the initial • Case won in 2010 but the levels of duties imposed on Chinese imports were low anti-dumping measures • Circumvention activities diminished the impact was modest • A sustained campaign by Capral and others has resulted in signi
Slide 11: Outlook
OUTLOOK • Housing commencements are forecast¹ to be around 220,000 for the 2016 year, up 3% on the strong 2015 market. Detached housing steady, with multi-residential up 7% • Extrusion market expected to remain strong through 2017 due to pipeline of residential work • Further material strengthening