Capral Limited · ASX:CAA
Capral — H1 2014 Earnings Presentation
9 slides from Capral's earnings presentation, Aug 21, 2014
Slide 1: 2014 Half Year Results Presentation
2014 Half Year Results Presentation 21 AUGUST 2014 CAPRAL LIMITED This presentation includes forward-looking estimates that are subject to risks, uncertainties and assumptions outside of Capral’s control and should be viewed accordingly. 1 21 August 2014 CAPRAL HALF YEAR RESULTS
Slide 2: Overview of Results
OVERVIEW OF RESULTS SIX MONTHS TO JUNE 2014 • Trading EBITDA1 profit of $2.6m (2013: $0.7m loss) • Volumes up 7% on H1 2013 (excluding OSA acquisition impact) $2.6m Trading profit in first half • Improved housing market driving volume increase • Billet premium increases are adversely impacting margi
Slide 3: Financial Summary
FINANCIAL SUMMARY SIX MONTHS TO JUNE 2014 H1 H1 2014 2013 Sales Volumes - External (‘000 tonnes) 27.0 20.6 $m $m Sales Revenue 176.3 141.2 1 Trading EBITDA 2.6 (0.7) Restructuring cost - (2.3) LME Revaluation/ Forex 2 (0.3) (1.1) Impairment of Assets - (41.5) 2 Abnormals (0.2) (0.6) EBITDA 2.1 (46.2
Slide 4: Balance Sheet Remains Strong
BALANCE SHEET REMAINS STRONG $m $m 6 months to Jun 14 Jun 13 EBITDA 2.1 (46.1) Working Capital (4.3) (5.2) Finance Cost (0.6) (0.4) Improved Operating Cash Flow Equity Compensation Amortisation 0.3 0.6 Impairment - 41.5 Other 0.2 (0.2) Operating Cash Flow (2.3) (9.8) Capex Spend (1.6) (1.5) Acquisit
Slide 5: Leverage to Recovery in Residential Construction
LEVERAGE TO RECOVERY IN RESIDENTIAL CONSTRUCTION RECOVERY STARTED IN 2013 ANNUAL DWELLING AND ANTICIPATED TO CONTINUE THROUGH 2015 COMMENCEMENTS ‘000 200 191 190* MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS 175 175 Underlying demand 168 MONTHLY UNITS 18,000 155 152 150 BIS Shrapn
Slide 6: Aluminium Extrusion Demand Is Recovering from Cyclical Low Levels
ALUMINIUM EXTRUSION DEMAND IS RECOVERING FROM CYCLICAL LOW LEVELS ‘000 Tonnes ALUMINIUM EXTRUSION MARKET PA 200 • Market has fallen ~20% from 2007 to 2013 200 • Recovery is visible in the new dwelling sector 175 183.3 • An increase in apartments relative to houses 22% 171.5 Forecast has increased th
Slide 7: Key Strategic Initiatives
KEY STRATEGIC INITIATIVES • Best aluminium product offer • Leading market share position • Long term customer relationships BUILD • • Experienced and committed workforce Commitment to continuous improvement and On our strengths customer service • National extrusion manufacturing footprint • National
Slide 8: Capral at the Forefront of Campaign to Reform Anti Dumping Regime
CAPRAL HAS BEEN AT THE FOREFRONT OF A CAMPAIGN TO REFORM THE AUSTRALIAN ANTI DUMPING REGIME Dumping & Countervailing Duties (Avg) 40% • Case won in 2010 but the levels of duties 30% The impact of the imposed imposed were low relative to Canada and USA 20% anti dumping measures to • Australian indust
Slide 9: Outlook
OUTLOOK • Housing commencements are forecast* to be around 191,000 for the year to December 2014, up 14% on the prior year • The AUD remains high by historical standards and favours imports of extrusions and fabricated aluminium products • We continue to drive cost out of the business and cost savin