Gwa Group Limited · ASX:GWA
Gwa — Morgans Queensland Conference 2018
20 slides from Gwa's conference presentation, Oct 10, 2018
Slide 1: Morgans Queensland Conference Presentation ASX cover letter
10 October 2018 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Morgans Queensland Conference Presentation Attached is a copy of the presentation given by the Managing Director of GWA Group Limited, Tim Salt, at the Morgans Queensland Conference in Brisbane today. Y
Slide 2: Morgans QLD Conference Presentation
Superior solutions for water Morgans QLD Conference Presentation 10 October 2018
Slide 3: GWA – about us
GWA – about us GWA - we make life better with superior solutions for water Our business Our core brands Our strengths Leading designer and supplier Significant scale across key of products, services and segments of B&K market technology focused on Bathrooms & Kitchens (B&K) Enviable reputation
Slide 4: GWA – a business repositioned for growth
GWA – a business repositioned for growth GWA 2014 GWA 2018 (today) Operational focus Diverse Building Products business spread across Focus on Bathrooms & Kitchens segment - $1.4bn category numerous segments Manufacturing Focus on local product manufacturing Collaborative relationships with exclusiv
Slide 5: Transformation from Push to Pull
Transformation from Push to Pull Primary Secondary Customer End User Customer Merchant Renovator/Small builder Independent Consumer Plumber Commercial Commercial Builder/Developer Plumber Residential Builder 4
Slide 6: Improved operating results and returns
Improved operating results and returns Group Revenue (A$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 19.3 18.7 17.8 18.
Slide 7: GWA operates in a large local market with significant growth opportunities
GWA operates in a large local market with significant growth opportunities A$1.4 billion addressable market Residential Multi Comm Commercial R&R Residential R&R -Res ercial $191m $123m $138m $324m $673m 13% 9% 10% 22% 46% 6 Source: GWA estimates – Australia market only, excludes NZ and Spares.
Slide 8: …with higher exposure to the more stable R&R segment
…with higher exposure to the more stable R&R segment B&K sales by segment % B&K sales by geography % Commercial NZ 15% 7% WA 12% NSW Multi- 34% residential 11% Renovation & Replacement VIC 53% 22% Detached housing QLD SA 21% 18% 7% 7 Source: GWA estimates
Slide 9: Priority is to leverage strengths in existing geographies, segments and categories
Priority is to leverage strengths in existing geographies, segments and categories GWA Superior Solutions for Water Growth Model New Geography Existing Priority. Strengthen core offering through organic and inorganic expansion Existing Adjacent 8 Segment / Category
Slide 10: Significant segment growth opportunities
Significant segment growth opportunities Market by segment (NSV – A$1.4bn) Residential Multi Comm Commercial R&R Residential R&R -Res $191m $123m $138m $324m $673m Rest-of-market Potential ~$150m NSV GWA ~ 35% ~ 25% ~ 35% share share share ~ 16% share ~ 16% share 9 Source: GWA estimates – Australia
Slide 11: …and capability to extend into large water solutions adjacencies
…and capability to extend into large water solutions adjacencies 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 Existing Priority. Strengthen core segment penetration
Slide 12: Intelligent bathroom system using Bluetooth integration
Intelligent bathroom system using Bluetooth integration within the bathroom connected to the Building Management System (BMS)/Cloud Non Touch fixtures Intelligent Bathroom Management System Bluetooth Smartphone Building Cloud Adaptor Management System 11
Slide 13: Caroma Smart Command Video
Caroma Smart Command Video 12
Slide 14: Benefits that Smart Command unlocks
Benefits that Smart Command unlocks Decision making Sustainability and Customer / Cost reduction through fact based innovation Consumer experience insights 13
Slide 15: Strategy positions GWA for growth
Strategy positions GWA for growth 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 Deliver e
Slide 16: GWA – making life better through superior solutions for water
GWA – making life better through superior solutions for water Demonstrating ability to drive growth and improve shareholder returns A more focused business with strong brands and leading market positions Pursuing significant growth opportunities focused on superior solutions for water Increa
Slide 17: 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. 16
Slide 18: Morgans QLD Conference Presentation
Superior solutions for water Morgans QLD Conference Presentation 10 October 2018
Slide 19: Residential R&R segment stability provides resilience through the cycle
Appendix - Residential R&R segment stability provides resilience through the cycle Alterations and Additions – Completions ($m) 9,000 8,000 7,000 $m Completed Annually 6,000 5,000 4,000 3,000 2,000 1,000 0 Actual Forecast 18
Slide 20: Commercial new build sustaining long term growth trajectory
Appendix - Commercial new build sustaining long term growth trajectory Non Residential – Value of Work Done (A$m) 60,000 50,000 40,000 30,000 20,000 10,000 0 Actual Forecast 19