Gwa Group Limited · ASX:GWA
Gwa — Macquarie Australia Conference 2019
21 slides from Gwa's conference presentation, May 2, 2019
Slide 1: Macquarie Australia Conference Presentation
2 May 2019 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Macquarie Australia Conference Presentation Attached is a copy of the presentation given by the Managing Director of GWA Group Limited, Tim Salt, at the Macquarie Australia Conference in Sydney today. Yours
Slide 2: Superior solutions for water
Superior solutions for water Presentation Macquarie Australia Conference 2019 02 May 2019
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. 2
Slide 4: Agenda
Agenda 01 About GWA 02 Methven acquisition 03 Update on strategic initiatives 04 Summary and questions 3
Slide 5: About GWA
About GWA 1G wa | dorf | METHVEN Group Limited
Slide 6: The business is now focused on superior solutions for water
The business is now focused on superior solutions for water Exit of local Divestment of Acquisition sanitaryware Door & Access of Methven manufacturing Systems and source from business overseas suppliers Sale of Gliderol Garage Sale of Dux Hot Doors Tim Salt Caroma Launch of Water appointed Flagship
Slide 7: GWA today
GWA today Making life better with superior water solutions Key brands ▪ Leading designer and supplier of products, services and technology focused on Bathrooms & Kitchens (B&K) ▪ Owner and distributor of market leading brands in core ~$1.7b B&K addressable market¹ focused on sanitaryware, taps / sho
Slide 8: Consistent improvement in operating results and returns
Consistent improvement in operating results and returns Group Revenue (A$m) Group EBIT (A$m) Revenue EBIT 453.2 84.4 426.2 439.7 446.3 80.6 399.4 78.3 72.7 64.4 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Group Return on Funds Employed (%) Group EBIT Margin (%) ROFE % EBIT Margin % 20.2 20.5 1
Slide 9: Consistent improvement in market share
Consistent improvement in market share Continued market share % growth in B&K1 20.8 20.7 20.3 19.6 19.1 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 8 1. Source: GWA estimates, B&K net sales as % of addressable market Australia (MAT December each year)
Slide 10: GWA strategy: Corporate Priorities
GWA strategy We make life better with superior solutions for water Build GWA as the most trusted and respected water solutions company Maximise shareholder value creation – NPAT growth , ROFE, TSR CUSTOMER FOCUSED CONSUMER DRIVEN Add value to customers through superior insights, Deliver experiences
Slide 11: Our approach to growth
Our approach to growth GWA Superior Solutions for Water Growth Model ➢ Local partnerships in ➢ Cannot win, will Commercial segments in not play New water scarce geographies Geography ➢ Grow via broader ➢ Priority. Strengthen core Existing segment penetration offering through organic and category and
Slide 12: Methven acquisition
Methven acquisition 1|G wa | dorf | METHVEN Group Limited
Slide 13: Methven acquisition strengthens water solutions strategy
Methven acquisition strengthens water solutions strategy About Methven Market by category1 (NSV – A$1.4bn) Sinks/ Sanitaryware Taps/Showers Baths Tubs Methven is a designer and manufacturer of showers, taps and valves based in Auckland: $574m $654m $76m $145m Rest-of-market ▪ Leadership position in
Slide 14: Methven acquisition provides compelling strategic rationale
Methven acquisition provides compelling strategic rationale Alignment with strategic objectives Accelerates GWA’s strategy to deliver superior water solutions Strengthens GWA’s position in bathroom and kitchen fixtures across Australia and New Zealand Increases GWA’s market share in Taps segme
Slide 15: Update on strategic initiatives
Update on strategic initiatives 14
Slide 16: Continued progress on strategic initiatives
Continued progress on strategic initiatives ▪ Embedding customer growth plans including opportunities in Aged Care / Health CUSTOMER FOCUSED ▪ Customer initiatives driving enhanced ranging / showroom presence Add value to customers through superior ▪ Continued conversion to Cleanflush drives increas
Slide 17: Caroma Smart Command - changing the standard in building water management
Caroma Smart Command® - changing the standard in building water management Key features of Caroma Smart Command¹ Key benefits of Caroma Smart Command¹ ▪ Touchless bathroom products Hygenic user experience ▪ Remote BMS² connectivity to all bathrooms Increased bathroom up time and better user expe
Slide 18: Caroma Smart Command generating positive market engagement
Caroma Smart Command® generating positive market engagement Key area Progress ▪ Smart Command now installed in 16 sites across Australia / NZ ▪ 7 additional projects in the pipeline for FY19 Expanded to more sites ▪ Strong customer engagement with large developers in commercial / retail ▪ Significan
Slide 19: Summary & Questions
Summary & Questions 18| Gem... QO |ciae« | dorf | METHVEN
Slide 20: GWA – business repositioned and better placed to manage through the cycle
GWA – business repositioned and better placed to manage through the cycle ▪ Slowing new build construction markets, predominantly in multi-residential segment ▪ Renovation & Replacement segment remains reasonably steady Market activity ▪ Commercial segment strong and GWA’s Commercial forward order b
Slide 21: Presentation
Superior solutions for water Presentation Macquarie Australia Conference 2019 02 May 2019