Gwa Group Limited · ASX:GWA
Gwa — Morgan Stanley presentation, Sydney (December 2010)
19 slides from Gwa's conference presentation, Dec 6, 2010
Slide 1: Presentation to Morgan Stanley (ASX cover letter)
6 December 2010 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Presentation to Morgan Stanley S GWA Group Limited ABN 15.055 964 380 t 6173109 6000 f 617 3852 2201 wway.gwagroup.com.aut Level 2, HO (South Tower) 520 Wickham Street Fortitude Valley QLO 4006 GPO Box
Slide 2: For personal use only
For personal use only
Slide 3: Presentation to Morgan Stanley
For personal use only Presentation to Morgan Stanley 6 December 2010 Presented by: Peter Crowley Managing Director
Slide 4: GWA's Growth Strategy
For personal use only GWA’s Growth Strategy
Slide 5: GWA's Growth Strategy
For personal use only GWA’s Growth Strategy Focussed on driving: Organic Growth – investing in R & D, people, systems and supply chain to enhance our customer value proposition and business efficiency Inorganic Growth – pursuing acquisitions which add scale to the Group in product and market adj
Slide 6: Improved Capital and Labour Efficiency Underpins Our Competitiveness
For personal use only IMPROVED CAPITAL AND LABOUR EFFICIENCY UNDERPINS OUR COMPETITIVENESS 400 (1) 1.40 (1) 1.20 350 R e v e n u e / E m p lo y e e $ Revenue / Funds 1.00 300 E m p lo y e d $ '0 0 0 's 0.80 250 0.60 200 0.40 150 0.20 100 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Re
Slide 7: Our Strategy Has Led to Redefining our Businesses
Our Strategy Has Led to Redefining For personal use only our Businesses GWA has historically defined its businesses by the brands it markets This constrains the way we look at the markets where we can grow Our core businesses are now defined as • GWA Bathrooms and Kitchens • GWA Heating and Co
Slide 8: For personal use only
For personal use only Innovative wet room products Heating & cooling Access and security Educational and commercial and water control technologies for residential technologies for residential furniture solutions technologies for residential and commercial and commercial applications and commercial a
Slide 9: GWA is Well Positioned to Pursue Inorganic Growth Opportunities
For personal use only GWA is Well Positioned to Pursue Inorganic Growth Opportunities Capacity to fund acquisitions up to $100 million through debt and $300-$400 million through debt plus equity We have clear financial and strategic criteria for growth which underpins our work Five transaction
Slide 10: Gliderol Garage Door and Openers Acquisition
For personal use only Gliderol Garage Door and Openers Acquisition GWA have today announced the acquisition of Gliderol for $42 million Purchase price represents approximately 5.5 times sustainable EBITDA Annual sales revenue of approximately $70 million
Slide 11: Acquisition Rationale
For personal use only Acquisition Rationale • Gliderol fits GWA strategy of developing profitable growth within the building fixtures and fittings sector • The financial metrics and strategic direction meet GWA criteria • Gliderol has a similar builder customer base to our building fixtures and fitt
Slide 12: Gliderol Overview
For personal use only Gliderol Overview A leader in the manufacture and supply of garage doors to the Australian market Has been in operation for over 36 years as a family owned and operated business Based at Holden Hill Adelaide, with State based factories and distribution Employs approx 28
Slide 13: Gliderol - Markets
For personal use only Gliderol - Markets • Nationally, Gliderol competes in the manufacture, sale and distribution of residential garage doors and automatic openers • Market is highly leveraged to residential housing and new housing starts • Other demand drivers include renovations and additions and
Slide 14: Gliderol – Product Offering
For personal use only Gliderol – Product Offering Roller doors Sectional doors Industrial doors Tilt doors Automatic openers Roller shutters Garage storage solutions
Slide 15: Gliderol - Operations
For personal use only Gliderol - Operations National manufacturing footprint with 5 factories in the major capital cities Doors are manufactured utilising roll forming and metal pressing processes Automatic Openers are sourced from Taiwan to Gliderol specifications Strong track record of eff
Slide 16: Business Outlook
For personal use only Business Outlook
Slide 17: Underlying Improvement in Building Approvals Will Lead to Higher Completions
For personal use only Underlying Improvement in Building Approvals Will Lead to Higher Completions in 2009/10 New Dwelling Activity 12 Month Moving Average 190,000 180,000 Moving Annual Numbers 170,000 160,000 150,000 140,000 130,000 120,000 3 4 5 6 7 8 9 03 04 05 06 07 08 09 10 -0 -0 -0 -0 -0 -0 -0
Slide 18: Short Term Growth Drivers Should Continue to Deliver Increased Earnings
Short Term Growth Drivers Should For personal use only Continue to Deliver Increased Earnings Y/E June 2010 trading result was up 9.5% and forecast 2011 is for further 10-15% increase Both 2010 and 2011 have benefited from Government stimulus measures Growth drivers beyond 2011 comprise: − Our
Slide 19: For personal use only
For personal use only
GWA Group — Morgan Stanley presentation, Sydney (December 2010) on 6ix