Gwa Group Limited · ASX:GWA

Gwa — H1 FY2017 Earnings Presentation

25 slides from Gwa's earnings presentation, Feb 20, 2017

  1. Slide 1: ASX cover letter: Half Year Results Presentation

    GS om Group Limited f 617 3852 2201 ww gwagraup.com.au 7 Eagleview Place Eagle Farm OLD 4008 GPO Box 1411 20 February 2017 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Financial Results Presentation for the Half Year Ended 31 December 2016 We en

  2. Slide 2: Results Presentation Half-year ended 31 December 2016

    Results Presentation Half-year ended 31 December 2016 20 February 2017 gwagroup.com.au

  3. Slide 3: Disclaimer

    Disclaimer This presentation contains non-IFRS financial measures to assist users to assess the underlying financial performance of the Group. The non-IFRS financial measures in this presentation were not the subject of a review or audit by KPMG. gwagroup.com.au 2

  4. Slide 4: Agenda

    Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 3

  5. Slide 5: Agenda

    Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 4

  6. Slide 6: Key themes from first half result

    Key themes from first half result Overview Group results Segment results Outlook Appendix • Customer and consumer initiatives focused on less cyclical #1 Renovation and Replacement segment • Improving engagement with major customers • Strengthening NPD pipeline – new range of Caroma Cleanflush #2 •

  7. Slide 7: Result in context of strategic priorities

    Result in context of strategic priorities Overview Group results Segment results Outlook Appendix Focus area Results for 1HFY17 Grow the top line • Revenue up 2% vs market growth of ~1% 1  • Group EBIT margin up 0.8 points, ROFE up 1.8 points 2 Maintain margin resilience  • Corporate costs down 16

  8. Slide 8: Improvement across key metrics

    Improvement across key metrics Overview Group results Segment results Outlook Appendix Continuing Operations* Revenue ROFE 2% 1.8pp $223.4m 19.5% Operating EBITDA 6% Cashflow $42.2m 22% $39.6m EBIT EPS 7% 14% $39.2m 9.9 cents Dividend NPAT 8% Interim Ordinary 7% $26.0m 7.5c *Continuing Operations ex

  9. Slide 9: Revenue growth ahead of weighted end market growth

    Revenue growth ahead of weighted end market growth Overview Group results Segment results Outlook Appendix 1 2 GWA end market exposure Market activity FY17 Renovation & Overall market remains relatively flat Replacement Residential Change 0% (MAT) 22% Residential Strong pipeline remains from lag det

  10. Slide 10: Agenda

    Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 9

  11. Slide 11: Net profit up 8% on prior period

    Net profit up 8% on prior period Overview Group results Segment results Outlook Appendix  Net profit from Continuing Half Year Half Year Continuing Operations A$m Dec 15 Dec 16 % Change Operations up 8% on prior Revenue 220.2 223.4 1.5% corresponding period EBIT 36.8 39.2 6.6%  EBIT up 7% driven b

  12. Slide 12: Continuing Operations EBIT up 7%

    Continuing Operations EBIT up 7% Overview Group results Segment results Outlook Appendix 45  Improved mix in B&K from 2.7 (1.7) 40 0.6 0.8 continued focus on higher 35 margin products 30  Market volume growth 25 continues to be in Multi- Residential and lower A$M 20 36.8 39.2 margin products – not

  13. Slide 13: Operating cashflow up 22%

    Operating cashflow up 22% Overview Group results Segment results Outlook Appendix Cash flow from Operations Half Year Half Year  Continued focus on cashflow - A$M Dec 15 Dec 16 operating cash up 22% on prior EBITDA 39.8 42.2 period Net movement in Working (7.1) (3.9) Capital  More effective workin

  14. Slide 14: Strong financial position maintained

    Strong financial position maintained Overview Group results Segment results Outlook Appendix 30 June 30 June 31 Dec 30 June 31 Dec Metric  GWA remains in strong financial position - credit 2014 2015 2015 2016 2016 metrics continue to be consistent with Net Debt 149.4 94.8 90.8 88.4 92.0 investment

  15. Slide 15: Agenda

    Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 14

  16. Slide 16: Solid result in Bathrooms & Kitchens

    Solid result in Bathrooms & Kitchens Overview Group results Segment results Outlook Appendix  Revenue up 3% - top line Half Year Half Year growth ahead of market Continuing Operations A$m % Change Dec 15 Dec 16 Revenue 169.8 174.3 2.7%  Strong sales growth in NSW (+13%), QLD and EBITDA 42.0 44.3 5

  17. Slide 17: Large decline in WA market impacts D&A result

    Large decline in WA market impacts D&A result Overview Group results Segment results Outlook Appendix  Revenue down 3% on prior Half Year Half Year year Continuing Operations A$m % Change Dec 15 Dec 16 Revenue 50.4 49.1 -2.6%  Sales across Eastern seaboard up +1.5% offset by significant EBITDA 4.5

  18. Slide 18: Agenda

    Agenda Overview Group Results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 17

  19. Slide 19: Continuing to progress strategy

    Continuing to progress strategy Overview Group results Segment results Outlook Appendix Strategic Priority Update on Progress • Launch next range of Cleanflush 2HFY17 Leverage and build on core assets & • New consumer experience centres opening brands to drive revenue and market • Enhanced digital c

  20. Slide 20: FY17 Outlook

    FY17 Outlook Overview Group Results Segment results Outlook Appendix  Renovation & Replacement segment expected to be relatively stable Market activity 1  Recent approvals data point to expected slow-down in construction, however, continued lag between approvals and completions supports continued

  21. Slide 21: Results Presentation February 2017

    Results Presentation 20 February 2017 gwagroup.com.au

  22. Slide 22: Appendix

    GWA Group Limited Appendix GS gwagroup.com.au

  23. Slide 23: Appendix - strong increase in earnings, NPAT & EPS

    Appendix - strong increase in earnings, NPAT & EPS Overview Group results Segment results Outlook Appendix Half Year Dec 15 Half Year Dec 16 A$m Continuing Discont'd Group Continuing Discont'd Group Operations Operations Total Operations Operations Total Reported EBITDA 39.8 (0.5) 39.3 42.2 0.0 42.2

  24. Slide 24: Appendix – Proforma 5 year summary

    Appendix – Proforma 5 year summary Overview Group results Segment results Outlook Appendix Half Year Half Year A$m FY12 FY13 FY14 FY15 FY16 Dec 15 Dec 16 Revenue Bathrooms & Kitchens 297.8 286.3 306.6 330.0 342.0 169.8 174.3 Door & Access Systems 78.9 89.8 92.8 96.2 97.7 50.4 49.1 Total Cont'd Ops 3

  25. Slide 25: Results Presentation Half-year ended 31 December 2016

    Results Presentation Half-year ended 31 December 2016 20 February 2017 gwagroup.com.au

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