Slide 1: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 19 FEBRUARY 2016 CAPRAL LIMITED 1 19 FEBRUARY 2016 CAPRAL FULL YEAR RESULTS
Slide 2: General Information
GENERAL INFORMATION Important Notes Footprint This presentation includes forward-looking estimates that are Darwin subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly. Cairns Trading EBITDA is the Statutory EBITDA adjusted for significant item
Slide 3: Overview of Results
OVERVIEW OF RESULTS FULL YEAR TO DECEMBER 2015 • Trading EBITDA¹ profit of $13.0m (2014: $9.2m) $13.0m Trading EBITDA • EBITDA profit of $5.1m (2014: $11.0m) $5.1m EBITDA • Sales revenue up 7.5% on 2014 • Volumes up 2.3%. Extrusion up 3.5%, Rolled products down 4.5% • Strong housing market driving v
Slide 4: Financial Summary
FINANCIAL SUMMARY TWELVE MONTHS TO DECEMBER 2015 2015 2014 Sales Volumes - External (‘000 tonnes) 57.8 56.5 $m $m Sales Revenue 402.6 374.7 1 Trading EBITDA 13.0 9.2 Restructuring related cost (0.7) (0.6) LME Revaluation (7.0) 3.2 Other one off costs (0.2) (0.8) EBITDA 5.1 11.0 Depreciation/Amortisa
Slide 5: Trading EBITDA Bridge
TRADING EBITDA BRIDGE Trading EBITDA $m 14 $0.1m $13.0m $3.8m $1.9m ($3.3m) 12 $1.3m 10 $9.2m 8 6 4 2 0 Trading EBITDA Volume Margin and Mix Inflation Cost Management Other Trading EBITDA FY14 Initiatives FY15 5 19 FEBRUARY 2016 CAPRAL FULL YEAR RESULTS
Slide 6: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG $m $m $m 12 months to Dec 15 Dec 14 Dec 13 EBITDA 5.1 11.0 (41.4) Working Capital 2.9 (1.2) 3.6 Operating cash flow level Acquisition Restructuring Costs - (2.2) - maintained, supported by reducing Finance Cost (1.2) (1.2) (0.8) inventory levels and metal cost Equity Com
Slide 7: Metal Costs Have Fallen from Multi-Year Highs
METAL COSTS HAVE FALLEN FROM MULTI-YEAR HIGHS A$/kg Metal Cost (AUD - Quarterly Average) 3.00 2.50 • Metal costs reached multi-year highs in Q1 2015 2.00 • Metal costs collapsed during the second half of 2015 1.50 - LME down from USD $1,802t to $1,495t - MJP down from USD $425t to $95t 1.00 • Result
Slide 8: Leverage to Recovery in Residential Construction
LEVERAGE TO RECOVERY IN RESIDENTIAL CONSTRUCTION RECOVERY STARTED IN 2013. VERY STRONG MULTI-RES ANTICIPATED TO GROW AT A SLOWER PACE THROUGH 2016 ANNUAL DWELLING COMMENCEMENTS ‘000 MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS 225 MONTHLY 217 UNITS BIS Shrapnel 214 forecast 198 20
Slide 9: Aluminium Extrusion Demand Is Recovering from Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND IS RECOVERING FROM CYCLICAL LOW LEVELS ‘000 Tonnes ALUMINIUM EXTRUSION MARKET SALES VOLUME PA • Extrusion Market in 2015 still ~11% below 2007 high 200 200 • Recovery is ongoing in the housing sector with Forecast 183.6 dwelling approvals exceeding 211,500 units1 178.7 183
Slide 10: 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 11: Increased Anti-Dumping Measures Against Chinese Imports
INCREASED ANTI-DUMPING MEASURES AGAINST CHINESE IMPORTS The impact of the initial anti-dumping measures • Case won in 2010 but the levels of duties imposed were low was modest • Circumvention activities diminished the impact • A sustained campaign by Capral and others has resulted in significant ref
Slide 12: Outlook
OUTLOOK • Housing commencements are forecast¹ to be around 216,700 for the 2016 year, up 1% on the strong 2015 market. Detached housing to remain at 2015 levels with multi-residential up 2.5% • The weakening AUD is positive for local manufacturing and under normal circumstances should assist Capral’