Slide 1: Annual Results Presentation for the Year Ended 30 June 2014
GWA Group Limited ABN 15 055 964 380 t 6173109 6000 f 617 3852 2201 ‘Wwww.gwagroup.com.au Level 2, HQ (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 19 August 2014 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual Resu
Slide 2: For personal use only
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Slide 3: Annual Results Presentation
For personal use only Annual Results Presentation 19 August 2014 Presented by: Peter Crowley Title: Managing Director
Slide 4: Major Successes & Challenges for the Half Year
For personal use only Major Successes & Challenges for the Half Year √ Bathrooms & Kitchens (excluding Hot Water) growing strongly with volumes up 5% and revenues up 7% compared to last year √ Restructure savings above expectations √ Building activity improving with completions strengthening √ Strat
Slide 5: Improving Conditions in the Second Half offset by Door & Access performance
For personal use only Improving Conditions in the Second Half offset by Door & Access performance Net Sales 2% better than prior year (1% adjusting for API acquired October 2012) Trading EBIT 8% better than prior year Bathrooms & Kitchens Net Sales (excluding Hot Water) 7% better than prior year Gai
Slide 6: Our Market is Changing
For personal use only Our Market is Changing While GWA remains Australia’s leading supplier of building fixtures and fittings, our markets are evolving: The relationship with our buyers is becoming more equal and also less predictable, through trends such as channel consolidation and digitisation Sh
Slide 7: In response to market changes, we have developed a strong argument for our portfolio
For personal use only In response to market changes, we have developed a strong argument for our portfolio Our Mission To be Australia's leading supplier of products and solutions to the residential and commercial building markets What we will do We will be efficient and easy to deal with We recogni
Slide 8: In response to market changes, we have developed a strong argument for our portfolio
For personal use only In response to market changes, we have developed a strong argument for our portfolio What we will do cont… We will free up our business units to focus on their markets by leveraging corporate functions which will enable: – Increased innovation and market insights; – Closer cust
Slide 9: Growth and Shareholder Return Driven by Focus and Leverage
For personal use only Growth and Shareholder Return Driven by Focus and Leverage We will focus on our core businesses of Bathrooms & Kitchens and Door & Access Systems where we see strong growth and returns in the future We will align and leverage the corporate functions to support the core business
Slide 10: Results – Year to June 2014
For personal use only Results –Year to 30 June 2014 $Million FY 14 FY 13 Change Sales Revenue 578.0 565.4 2% Trading EBIT 72.3 66.8 8% EBIT Margin 12.5% 11.8% Trading Profit after Tax 43.8 39.3 11% Net Profit after Tax Inc Restructuring, Impairment and Significant Items 18.6 32.4 -43%
Slide 11: Trading EBIT Waterfall
For personal use only Trading EBIT Waterfall 80,000 75,000 14,834 681 72,342 Volume and mix impacted by 70,000 66,770 lower $margin products in 8,118 65,000 3,984 3,521 Bathrooms & Kitchens and 60,000 decline in Hot Water and Garage Door volumes together with 55,000 supply issues in Gainsborough 50,
Slide 12: Bathrooms & Kitchen - Strong Performance
For personal use only Bathrooms & Kitchen - Strong Performance $Million FY 14 FY 13 % Change Sales 379.2 367.5 3% Traditional Bathrooms & Kitchens Net Sales up 7% but skewed to Trading lower $ margin products as medium EBIT 75.0 64.5 16% to high density dwelling activity increases EBIT% 19.8% 17.6%
Slide 13: Heating & Cooling
Heating & Cooling For personal use only Share Gains in Victorian Market $Million FY 14 FY 13 % Change Sales 62.8 58.8 7% Share gained in core categories Strong winter season for ducted gas Trading heater sales EBIT 5.7 6.2 -9% Strong Growth in Evaporative Cooler Sales up 40% on prior year EBIT% 9.0%
Slide 14: Door & Access Systems
Door & Access Systems For personal use only Gainsborough Supply Disruption & Gliderol Issues $Million FY 14 FY 13 % Change Sales 136.6 140.9 -3% Underlying sales down by 7% adjusting for API which was Trading acquired in October 2012 EBIT 3.9 10.9 -64% Gainsborough EBIT down $5 million year on year
Slide 15: Cash Flow Reflects Inventory Build in Core Businesses for Market Improvement
For personal use only Cash Flow Reflects Inventory Build in Core Businesses for Market Improvement $Million FY 14 FY 13 Cash generated from continuing operations 63.5 98.4 Restructuring Cash Flows -4.3 -13.6 Cash Flow Associated with One Time Significant Items -5.1 -1.2 Cash generated from Operation
Slide 16: Financial Metrics Remain Strong
For personal use only Financial Metrics Remain Strong FY 14 FY 13 Net Debt ($M) 145.1 162.2 Gearing Ratio (Net Debt / Net Debt Plus Equity) 26% 28% Leverage Ratio (Net Debt / EBITDA) 1.67 1.92 Debt Maturity Profile July 2016 200.0 July 2018 75.0
Slide 17: Fully Franked Dividend of 5.5 cents per share impacted by Gliderol Impairment
Fully Franked Dividend of 5.5 cents per For personal use only share impacted by Gliderol Impairment $Million FY 14 FY 13 Trading profit after tax 43.8 39.3 Trading earnings per share 14.3¢ 12.9¢ Reported earnings per share 6.1¢ 10.6¢ Ordinary Dividend Interim 0.0¢ 6.0¢ Final 5.5¢ 6.0¢ Total (fully f
Slide 18: Priorities For FY15 – Growth & Leverage
For personal use only Priorities For FY 15 – Growth & Leverage Continue to develop our focus on Bathrooms & Kitchens target market segments Rebuild market share in Door & Access focusing on key market segments Divest Dux and Brivis through a process managed by Greenstone Partners in Sydney Align the
Slide 19: Housing Activity Improving and Will Continue Through FY15
For personal use only Housing Activity Improving and Will Continue Through FY 15 Australia - New Dwelling Activity 12 Month Moving Annual 200,000 190,000 Moving Annual Numbers 180,000 170,000 160,000 150,000 140,000 130,000 120,000 Ju 3 Ju 4 Ju 5 Ju 6 Ju 7 Ju 08 Ju 9 Ju 0 Ju 1 Ju 2 Ju 3 D 3 D 4 D 5
Slide 20: FY15 Outlook
For personal use only FY 15 Outlook Market activity has improved with completions forecast to increase through FY 15 Price increases taken through FY 14 are offsetting the impact of FX The supply issues seen in the Gainsborough business are behind us Gliderol improvements are slowly starting to show
Slide 21: Non-IFRS Financial Measures
For personal use only Non-IFRS Financial Measures Given the significance of the restructuring expenses and significant items the Directors believe the presentation of non-IFRS financial measures is useful for the users of this document as they reflect the underlying financial performance of the busi
Slide 22: For personal use only
GWA Group Limited GS MM ——es == —— I= =a 7 5 = | _— a ——, \ | ¢ —_ ae Le —=— Sa