Capral Limited · ASX:CAA
Capral — FY2003 Earnings Presentation
18 slides from Capral's earnings presentation, February 2004
Slide 1: Shareholder Presentation – Full Year Results and Strategy Update
Capral Aluminium Limited Shareholder Presentation February 2004 z Full Year Results 31 December 2003 z Capral Strategy Update Greg L’Estrange – Managing Director Nigel Chalk – Finance Director
Slide 2: Full Year Results 31 December 2003
Capral Aluminium Limited Shareholder Presentation Full Year Results 31 December 2003
Slide 3: Earnings Summary
Capral Aluminium Limited Earnings Summary Full Year December 2003 000's 2003 2002 Revenue from operating activities 382,321 440,327 Revenue from outside the operating activities 22,120 36,177 Total Revenue 404,441 476,504 EBITDA 5,103 18,033 D&A 12,173 12,356 EBIT (7,070) 5,677 Interest Expense (595
Slide 4: Underlying Performance
Capral Aluminium Limited Underlying Performance Full Year December 2003 000's 2003 2002 Better / (Worse) Revenue from operating activities * Sales Revenue Australia - core business 347,577 374,375 (26,798) Sales Revenue Australia - closed business 0 0 0 Sales Revenue New Zealand 0 21,107 (21,107) Ot
Slide 5: Year over Year EBIT
Capral Aluminium Limited Year over Year EBIT Full Year December 2003 Underlying EBIT FY 02 9,592 Underlying EBIT FY 03 (3,323) EBIT Variance (12,915) Volume / Mix (8,075) Cost of Business transition / High cost business model (4,840) until transition is complete EBIT Variance (12,915) 5
Slide 6: Overhead Analysis
Capral Aluminium Limited Overhead Analysis Full Year December 2003 000's 2003 2002 Warehouse Overheads 10,460 9,089 Selling Expenses 31,751 31,446 Information Technology 8,703 8,842 Corporate Overheads 13,006 13,484 Total Australia 63,920 62,861 New Zealand 0 4,095 Total 63,920 66,956 6
Slide 7: Balance Sheet
Capral Aluminium Limited Balance Sheet Full Year December 2003 000's 2003 2002 Current Assets & Liabilities Cash 2,646 5,249 Receivables 61,687 59,708 Inventories 48,132 47,797 Payables (54,274) (55,829) Borrowings (10,881) (10,048) Provisions (3,656) (3,966) Other 4,313 3,328 Total 47,967 46,239 Lo
Slide 8: Operating Working Capital Performance
Capral Aluminium Limited Operating Working Capital Performance (excluding Borrowings, Cash & Taxation) 000's 2003 2002 Current Assets Receivables 61,687 59,708 Inventories 48,132 47,797 Other Current Assets 4,313 3,361 Current Liabilites Payables (54,274) (55,829) Other Provisions (3,656) (3,966) Op
Slide 9: Cash Flow
Capral Aluminium Limited Cash Flow Full Year December 2003 000's 2003 2002 Net Cash Inflow /(Outflow) from Operating Activities (2,652) 45,652 Cash Flows from Investing Activities Capital Expenditure (64,977) (41,563) Proceeds from Sale of PP&E 19,720 19,050 Payments for Intangible Assets 0 (2,164)
Slide 10: Funding arrangements
Capral Aluminium Limited Funding arrangements Facility Limit Used Available $m $m $m Core Borrowings AUD 50m 50 0 50 Export Facility AUD 49m 49 29 20 AUD 5m 5 4 1 Overdraft AUD 15m 15 4 11 Total 119 37 82 10
Slide 11: Major CAPEX projects 2003
Capral Aluminium Limited Major CAPEX projects 2003. Budget Spent Committed Dec 03 Bremer Park $88.0m $57.3m $19.5m Campbellfield $23.2m $20.9m $2.0m One System $8.0m $8.0m $ 0.0m Total (Major) $119.2m $86.2m $21.5m 11
Slide 12: Capral Strategy Update
Capral Aluminium Limited Shareholder Presentation Capral Strategy Update
Slide 13: Major Focus Areas
Capral Aluminium Limited Major Focus Areas z Bremer Park z Campbellfield Industrial Press z Warehouse Consolidation z SAP System z Overheads 13
Slide 14: Bremer Park
Capral Aluminium Limited Bremer Park z Watpac well underway with construction z Equipment installation commences in second quarter z Commissioning during third and fourth quarters z Fully operational first quarter 2005 14
Slide 15: Campbellfield Industrial Press
Capral Aluminium Limited Campbellfield Industrial Press z Equipment operational handover during December 2003 z Operational ramp up phase now in progress z Projected to be at target capacity by April 2004 15
Slide 16: Warehouse Consolidation
Capral Aluminium Limited Warehouse Consolidation z Scoresby closed in January 2004 z Port Melbourne to close in April 2004 z Homebush to close in April 2004 z Murrarie to close in fourth quarter 2004 16
Slide 17: SAP System
Capral Aluminium Limited SAP System z Fully implemented in fourth quarter 2003 z Initial issues relating to data integrity and employee knowledge now well progressed z Full benefits will be achieved over 2004 z The forecasted benefits of the system should be exceeded after it has been operational fo
Slide 18: Overheads
Capral Aluminium Limited Overheads z Forecast reduction of overheads from 16% to 10% of sales should be achieved by end of 2005 z Enablers: – System implementation – Warehouse consolidation – Supply chain system implementation – Transition costs eliminated – Production site consolidation at Bremer 1