Gwa Group Limited · ASX:GWA
Gwa — Shareholder Meeting (October 2017)
24 slides from Gwa's shareholder meeting presentation, Oct 27, 2017
Slide 1: Annual General Meeting Presentation to Shareholders
GWA Group Limited S ABN 16 055 964 380 t 61/3109 6000 f 617 3852 2201 Wy¥w.gWagroup.cOmM aut ? Eagleview Place Eagle Farm QLD 4009 GPO Box 1411 Brisbane QLD 4001 27 October 2017 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual General Meeting Presentation to S
Slide 2: 25th Annual General Meeting
25th Annual General Meeting 27th October 2017 Page 1
Slide 3: Managing Director's Address
Managing Director’s Address Page 2
Slide 4: Workplace Health and Safety
Workplace Health and Safety Continued focus on providing safe workplace for employees, contractors, visitors and customers Total Injury Frequency Rate (TIFR) Key initiatives in FY17: ‒ Safety Interactions Program to develop and drive safety behaviour engagement between employees and business ‘sa
Slide 5: GWA – a strong and growing business
GWA – a strong and growing business Group Revenue (A$m) Group EBIT (A$m) 460 90 80.6 446 78.3 440 72.8 440 75 426 64.5 420 60 55 399 400 45 380 376 30 360 15 340 0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Continuing Operations excluding Brivis Climate Systems, Dux Hot Water and Gliderol Gar
Slide 6: FY17 result - continued improvement across key metrics
FY17 result - continued improvement across key metrics Continuing Operations¹ Revenue ROFE 2% 0.9pp $446.3m 20.2% EBITDA Operating Cashflow 2% $86.2m $88.8m (3%) EBIT EPS 3% 7% $80.6m 20.3 cents Dividend NPAT 3% Full-year ordinary 16.5c 10%² $53.7m (7.5c interim, 9c final) ¹ Continuing operations ex
Slide 7: Result consistent with market guidance
Result consistent with market guidance What we said Results for FY17 1 2H EBIT at or slightly ahead of first half FY17 EBIT in 2nd half up 5% on first half 2 $5m reduction in working capital in 2H Working capital reduced $9 million in 2H – contributes to 24% increase in operating cashflow in
Slide 8: Solid result in FY17 while continuing to build strong platform for future growth
Solid result in FY17 while continuing to build strong platform for future growth Solid full year result – continued growth in top and bottom line Continued focus on top line growth and cost control to support margin management delivers earnings and market share growth Strengthening market posi
Slide 9: Continued strong cashflow generation
Continued strong cashflow generation Cash flow from Operations FY16 FY17 A$M EBITDA 84.3 86.2 Continue to generate strong cashflow across the business Net movement in Working 6.3 2.4 Capital Working capital improvement in 2H from inventory management Other 1.1 0.2 and integrated business plannin
Slide 10: Strong financial position supports growth and re-investment through the cycle
Strong financial position supports growth and re-investment through the cycle 30 June 30 June 30 June Metric 2015 2016 2017 Net Debt 94.8 88.4 79.8 GWA remains in strong financial position - credit metrics continue to be consistent with investment grade Leverage Ratio Net Debt / EBITDA 1.1 1.1 0.9
Slide 11: Bathrooms & Kitchens – continued growth ahead of market and margin resilience
Bathrooms & Kitchens – continued growth ahead of market and margin resilience Revenue up 2.5% - ahead of market growth of 1.3% Continuing Operations A$m FY16 FY17 % Change continued share growth in core segments – R&R, Revenue 342.0 350.4 2.5% commercial, detached houses EBITDA 86.6 89.4 3.2%
Slide 12: Door & Access Systems – addressing short term performance and strengthening for medium term
Door & Access Systems – addressing short term performance and strengthening for medium term Revenue down 2% Continuing Operations A$m FY16 FY17 % Change growth in eastern states VIC (+2%), QLD (+2%) more than Revenue 97.7 95.9 -1.8% offset by weak WA market (-27%) EBITDA 8.7 7.7 -11.5% Refocus
Slide 13: Continued progress on our strategy
Continued progress on our strategy Strategic priority Progress against priorities Growing share consistently in core segments Leverage and build on core assets & brands Strong new product and breakthrough innovation pipeline in FY18 to drive revenue and market share growth Consumer engagement
Slide 14: FY18 outlook
FY18 outlook Key area FY18 commentary Renovations & Replacement segment expected to remain relatively stable Update on market activity Expect slow-down in residential construction markets however, lag between approvals and completions supports continued demand. Multi-Residential not a core focus
Slide 15: Formal Business
Formal Business Page 14
Slide 16: Financial statements
Financial statements Financial Statements for the year ended 30 June 2017 Page 15
Slide 17: Resolution 1 – Re-election of John Mulcahy
Resolution 1 – Re-election of John Mulcahy That Mr John Mulcahy, who retires as a director of the Company in accordance with clause 10.3 of the Company’s Constitution, be re-elected as a director of the Company Page 16
Slide 18: Resolution 2 – Re-election of Richard Thornton
Resolution 2 – Re-election of Richard Thornton That Mr Richard Thornton, who retires as a director of the Company in accordance with clause 10.3 of the Company’s Constitution, be re-elected as a director of the Company. Page 17
Slide 19: Resolution 3 – Election of Jane McKellar
Resolution 3 – Election of Jane McKellar That Ms Jane McKellar, who retires as a director of the Company in accordance with clause 10.11 of the Company’s Constitution, be re-elected as a director of the Company. Page 18
Slide 20: Resolution 4 – Election of Stephen Goddard
Resolution 4 – Election of Stephen Goddard That Mr Stephen Goddard, who retires as a director of the Company in accordance with clause 10.11 of the Company’s Constitution, be re-elected as a director of the Company. Page 19
Slide 21: Resolution 5 - Adoption of Remuneration Report
Resolution 5 - Adoption of Remuneration Report That the Remuneration Report for the year ended 30 June 2017 be adopted. Page 20
Slide 22: Resolution 6 – Approval of Performance Rights
Resolution 6 – Approval of Performance Rights That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant of up to 250,000 Performance Rights (incorporating the right to acquire shares in the Company) to the Managing Director, Mr Tim Salt, on t
Slide 23: Resolution 7 – Approval of Performance Rights
Resolution 7 – Approval of Performance Rights That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant of up to 50,000 Performance Rights (incorporating the right to acquire shares in the Company) to the Executive Director, Mr Richard Thornt
Slide 24: 25th Annual General Meeting
25th Annual General Meeting 27th October 2017 Page 23