Slide 1: Half Year Results Presentation and Earnings Guidance
2021 Half Year Results Presentation and Earnings Guidance 25 August 2021 Capral Limited (ASX:CAA) Level 4, 60 Phillip Street Parramatta NSW 2150 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 TONNES² ANNUAL TURNOVER MARKET SHARE MARKETS - OVER >$500 ~26% RESIDENTIAL & COMMERCIAL 900 CONSTRUCTION, EMPLOYEES³ MILLION INDUSTR
Slide 3: Agenda
AGENDA 1. 1H21 Highlights 2. 1H21 Financials 3. Strategy 4. Outlook & Guidance
Slide 4: 1H21 Highlights
1H21 HIGHLIGHTS Tony Dragicevich, CEO & Managing Director “Strong first half driven by momentum in key market segments”
Slide 5: 1H21 Performance Highlights
1H21 PERFORMANCE HIGHLIGHTS VERY STRONG FIRST HALF RESULT – AHEAD OF GUIDANCE 1H21 Trading EBITDA1 1H21 EBITDA¹ Volume up 33% on 1H20 to ~36,000 tonnes $15.7m $26.2m (1H20: $5.8m) (1H20: $17.0m) Sales Revenue $261m (1H20: $196m) Earnings per share at Interim dividend Strong balance sheet 93 cents 20
Slide 6: Volume Breakdown and Growth
VOLUME BREAKDOWN AND GROWTH Channels to market (volume) Diverse industry exposure Volume Seasonality Tonnes (000’s) 40 15% 13% 35 30 25 26% 58% 42% 45% 20 15 10 5 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Source: Capral Source: Capral Residential building includes additions
Slide 7: Residential Market Continues to Grow
RESIDENTIAL MARKET CONTINUES TO GROW 2021 Annual Dwelling Commencements¹ (000’s) 250 Latest forecast¹ 211,000 starts in 2021 up 16% on 2020 200 Residential starts rising Detached dwellings strongly, assisted by; increasing by - low interest rates - HomeBuilder stimulus 26% 150 - State government fir
Slide 8: Recent Capral Residential & Commercial Projects
RECENT CAPRAL RESIDENTIAL & COMMERCIAL PROJECTS Medindie House, SA Rae Rae House, Melbourne, VIC Schüco windows & doors Capral Futureline windows & Schuco doors The Marsden Brewhouse, NSW Coastal Luxury, Lorne, VIC 8 Capral commercial glazing systems Deco cladding and Capral architectural glazing sy
Slide 9: Industrial Sector Rebounding
INDUSTRIAL SECTOR REBOUNDING Total Capral Industrial Volumes (Index 2012) New Truck and Van Builds (000’s) 140 45 120 40 100 35 (¹) 80 30 60 25 40 20 20 0 15 10 Source: Capral 5 0 Marine Manufacturing & 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Improving market conditions General F
Slide 10: Recent Capral Industrial Projects
RECENT CAPRAL INDUSTRIAL PROJECTS Catamaran Ferry, Austal Vietnam Mounted HVAC platform, Con-form Group Capral marine grade plate and extrusion Capral extrusion Tipper, Muscat Trailers Ventilation Shafts M5/M8 Tunnel, Sydney 10 Capral plate and extrusion Capral extrusion gold anodised
Slide 11: 1H21 Financials
1H21 FINANCIALS Tertius Campbell, CFO “Earnings underpinned by a combination of higher volume and improved operating leverage” 11
Slide 12: Very Strong First Half Earnings
VERY STRONG FIRST HALF EARNINGS 1H21 1H20 1H21 volume 33% higher than prior period Sales Volume ('000 tonnes) 35.9 27.0 Sales revenue increase driven by volume and higher metal prices $m $m EBITDA up by 54% on 1H20 (up by 108% excluding JobKeeper 1H20) Sales Revenue 261.2 195.6 Depreciat
Slide 13: Robust Financial Position That Supports Dividends and Reinvestment
ROBUST FINANCIAL POSITION THAT SUPPORTS DIVIDENDS AND REINVESTMENT BALANCE SHEET JUN 21 DEC 20 $m $m Inventory (raw material and finished goods) increased due to; activity Current Assets levels, increased metal prices, and higher goods in transit Inventory 116.7 79.1 Trade Receivables 82.5 66.
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 1H21 1H20 $m $m Working Capital increase driven by increased debtors and inventory due to EBITDA 26.2 17.0 rising sales levels and higher metal cost Working Capital (11.8) 3.4 Finance Cost (2.6
Slide 15: Strategy and Outlook
STRATEGY AND OUTLOOK Tony Dragicevich, CEO & Managing Director “Drive return on recent investments and keep improving our long-term competitive position“ BUILD OPTIMISE GROW on our what we for the strengths do future
Slide 16: Improve Productivity and Competitiveness, Retain Share Gains
IMPROVE PRODUCTIVITY AND COMPETIVENESS, RETAIN SHARE GAINS Manufacturing Distribution Sales • Deliver benefits of Smithfield plant • Upgrade Capral’s window & door • On-going technology investment to acquisition, aim to run at capacity 1Q22 product range and systems software improve sales effectiven
Slide 17: Key Industry Influencing Trends
KEY INDUSTRY INFLUENCING TRENDS Anti-Dumping Activities Aluminium Price (LME & MJP) Original case won in 2010 with low level duties imposed on Chinese imports A$/kg Metal Cost Reforms to federal legislation and methodology 3.30 Measures imposed against all Vietnam and some Malaysian imports 20
Slide 18: Outlook – Earnings Guidance Upgraded
OUTLOOK – EARNINGS GUIDANCE UPGRADED Capral continues to operate as an essential business during COVID restrictions and, at this stage, does not expect restrictions to have a significant adverse impact on demand in the second half Smithfield extrusion plant will continue to ramp up production le
Slide 19: Questions
CAPRAL 2021 HALF YEAR RESULTS QUESTIONS
Slide 20: 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