Gwa Group Limited · ASX:GWA
Gwa — H1 FY2018 Earnings Presentation
24 slides from Gwa's earnings presentation, Feb 19, 2018
Slide 1: ASX cover letter: Half Year Results Presentation
| GS “GWA | Group Limited ABN 4380 t 61 73709 6000 f G1 7 3852 2201 WWW. Gwva group Cem) au 7 Eagleview Place Eagle Farm GUD 4099 GPO Box 1411 Brisbane QLD 4001 19 February 2018 Brisbane QLD 40 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Financial Results Presen
Slide 2: Results Presentation – Half Year ended 31 December 2017
Results Presentation Half Year ended 31 December 2017 19 February 2018 Page 1
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. Page 2
Slide 4: Agenda
Agenda GWA Group Limited G Page 3
Slide 5: Agenda
Agenda Overview and key themes Tim Salt Managing Director & CEO Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt Page 4
Slide 6: Overview and key themes
Overview and key themes Page 5
Slide 7: Continued revenue growth above market from profitable share gains in core segments
Overview Group results Segment results Outlook Appendix Continued revenue growth above market from profitable share gains in core segments GWA continues to grow ahead of the market Profitable share gains in core segments drives revenue growth ahead of market Strengthened product ranging and NP
Slide 8: Strong financial result across all metrics
Overview Group results Segment results Outlook Appendix Strong financial result across all metrics Revenue ROFE 2% 1.4pp $227.1m 20.9% EBITDA Operating Cashflow 5% $44.2m $45.0m 14% EBIT EPS 6% 7% $41.8m 10.5 cents NPAT Interim Dividend 7% 13% $27.7m 8.5 cents fully-franked Page 7
Slide 9: Focused on R&R, detached housing and commercial segments
Overview Group results Segment results Outlook Appendix Focused on R&R, detached housing and commercial segments B&K sales by segment % B&K sales by geography % Commercial NZ 15% 7% WA 12% NSW Multi- 34% residential 11% Renovation & Replacement VIC 53% 21% Detached housing 21% SA QLD 7% 19% Source:
Slide 10: Continuing to grow revenue ahead of the market
Overview Group results Segment results Outlook Appendix Continuing to grow revenue ahead of the market 2 B&K revenue up 2.6% vs market increase of 0.7%1 Continued market share growth in B&K Renovation & Overall market remains relatively flat Replacement 21 Decreased (0.7)% (MAT) 20.5 20.7 Residentia
Slide 11: Group financial results
Group financial results Page 10
Slide 12: Strong increase in net profit - up 7% on prior period
Overview Group results Segment results Outlook Appendix Strong increase in net profit - up 7% on prior period Continuing Operations Half Year Half Year A$m Dec 16 Dec 17 EBITDA 42.2 44.2 Net profit up 7% on prior period EBIT 39.2 41.8 NPAT 26.0 27.7 EBIT up 6% from market share gains in core seg
Slide 13: EBIT growth from profitable share gains, margin management
Overview Group results Segment results Outlook Appendix EBIT growth from profitable share gains, margin management Group EBIT bridge (A$m) Group EBIT up 6% on prior period 50 Volume/Mix - Continued focus on higher margin products in 3.6 (4.2) 5.0 (1.8) B&K core segments (R&R, Commercial, Detache
Slide 14: Continued strong cashflow generation
Overview Group results Segment results Outlook Appendix Continued strong cashflow generation Cash flow from Operations A$M Half Year Half Year Continue to generate strong cashflow across the business Dec 16 Dec 17 EBITDA 42.2 44.2 Improved working capital management drives increase in operating
Slide 15: Strong financial position supports growth and re-investment through the cycle
Overview Group results Segment results Outlook Appendix Strong financial position supports growth and re-investment through the cycle 30 June 30 June 31 Dec 30 June 31 Dec GWA remains in a strong financial position – all credit metrics Metric 2015 2016 2016 2017 2017 strengthened from prior corres
Slide 16: Segment results
Segment results S GWA Group Limited
Slide 17: Bathrooms & Kitchens – continuing to grow above market while maintaining margin
Overview Group results Segment results Outlook Appendix Bathrooms & Kitchens – continuing to grow above market while maintaining margin Half Year Half Year Continuing Operations A$m Dec 16 Dec 17 % Change Revenue up 2.6% - ahead of market growth of 0.7% Revenue 174.3 178.9 2.6% continued share g
Slide 18: Door & Access Systems – refocusing initiatives drive significant earnings and margin improvement
Overview Group results Segment results Outlook Appendix Door & Access Systems – refocusing initiatives drive significant earnings and margin improvement Half Year Half Year Continuing Operations A$m % Change Dec 16 Dec 17 Revenue down 2% Revenue 49.1 48.2 -1.8% Improved sales in NSW (+8%) offset
Slide 19: Summary and outlook
Summary and outlook Page 18
Slide 20: Continuing to deliver on strategy
Overview Group results Segment results Outlook Appendix Continuing to deliver on strategy Strategic priority Progress against priorities Continued profitable share growth Leverage and build on core assets & brands to drive NPD focused on core segments driving improved performance revenue and mar
Slide 21: Strategic Review – proposed divestment of Door & Access Systems business
Overview Group results Segment results Outlook Appendix Strategic Review – proposed divestment of Door & Access Systems business Based on a recent strategic review of the GWA Group, a decision has been made to focus on the Bathrooms & Kitchens business, where GWA has strong market positions, marke
Slide 22: FY18 outlook
Overview Group results Segment results Outlook Appendix FY18 outlook Key area FY18 commentary Market expected to remain relatively steady; continued momentum in NSW & VIC; Market Activity offset by slower conditions in QLD and WA R&R segment expected to remain relatively stable Commercial forw
Slide 23: Appendix
Appendix Page 22
Slide 24: Proforma 5 year summary
Proforma 5 year summary Half Year Half Year A$m FY13 FY14 FY15 FY16 FY17 Dec 16 Dec 17 Revenue Bathrooms & Kitchens 286.3 306.6 330.0 342.0 350.4 174.3 178.9 Door & Access Systems 89.8 92.8 96.2 97.7 95.9 49.1 48.2 Total Cont'd Ops 376.1 399.4 426.2 439.7 446.3 223.4 227.1 Discontinued Ops ** 189.2