Gwa Group Limited · ASX:GWA
Gwa — Shareholder Meeting (October 2018)
37 slides from Gwa's shareholder meeting presentation, Oct 26, 2018
Slide 1: Annual General Meeting Presentation to Shareholders
? Eagleview Place Eagle Farm OLD 4009 GPO Box 1411 26 October 2018 Brisbane OLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual General Meeting Presentation to Shareholders In accordance with Listing Rule 3.13, we enclose the Chairman's and Managing Dire
Slide 2: GWA Annual General Meeting
GWA Annual General Meeting 26 October 2018
Slide 3: Agenda
Agenda 01 Chairman’s Address 02 Managing Director and CEO’s presentation 03 Formal Business 04 Close 2
Slide 4: Governance
Governance ▪ Corporate Governance has for many months been the subject of intense scrutiny ▪ Fundamentally each organisation needs to ask themselves the question posed by Justice Neville Owen the Commissioner of the Royal Commission into the collapse of HIH Insurance 2003 ▪ Did anyone stand back and
Slide 5: Risk Management
Risk Management ▪ The Board has established an Audit and Risk Committee which meets regularly throughout the year ▪ While not all board members are members of the committee nonetheless all Board members attend the meetings of the committee and participate in debate ▪ That committee has adopted a ris
Slide 6: Safety
Safety ▪ Our people are our most important asset: our goal is an injury free workplace ▪ “Caring For Each Other” is the ongoing theme central to the Group’s cultural pillars ▪ Substantial progress has been and continues to be made to improve the Group’s safety culture with a number of safety initiat
Slide 7: Sustainability
Sustainability ▪ We remain committed to sustainable practices and will continue to work with key stakeholders and communities to develop those ▪ GWA’s fundamental premise is to create superior solutions for people to enjoy and sustain water, our planet’s most precious resource ▪ The GWA Group has an
Slide 8: Board and executive remuneration
Board and executive remuneration ▪ Continued freeze on Board and executive remuneration for FY18 subject to one exception ▪ Short-term incentive payments for FY18 reflect improved Group profit performance enabling Board to maintain high dividend payout to shareholders ▪ Performance requirements unde
Slide 9: Overview of FY18 result
Overview of FY18 result Solid result ▪ The metrics for FY18 show a positive improvement on FY17 ▪ This is the third consecutive year of increased earnings per share and increased dividends to shareholders: FY18 dividend of $0.18 per share ▪ Profitable share gains in core segments has driven revenue
Slide 10: Managing Director's Presentation
Managing Director’s Presentation
Slide 11: GWA, a business with purpose
GWA, a business with purpose We make life better through the design and delivery of products, services and technologies that create superior solutions for people to enjoy and sustain water, our planet’s most precious resource. 10
Slide 12: Safety performance strengthening – 7 months LTI free
Safety performance strengthening – 7 months LTI free GWA Safety - Rolling 12 months frequency and # of incidents 14 12 10 8 6 4 2 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep No of LTIs MTIFR LTIFR TIFR 11
Slide 13: Solid FY18 financial result across metrics
Solid FY18 financial result across metrics Normalised¹ from Group Operations Revenue ROFE $453.2m 1.5% 0.3pp 20.5% B&K $359.3m +2.5% Operating Cashflow EBITDA $71.6m 3.8% -19.4% $89.5m Reduced due to move to new distribution centre EBIT EPS 4.7% 4.3% $84.4m 21.2 cents NPAT FY Dividend 4.3% 18.0 cent
Slide 14: Further share gains drive revenue growth above market
Further share gains drive revenue growth above market B&K revenue up 2.5% vs market of ~2%¹ Continued market share % growth in B&K² Renovation & Overall market showing growth in both Replacement Residential & Commercial R&R Increased ~2.5% (MAT) 20.8 Residential Strong pipeline remains from lag betw
Slide 15: Strong financial position supports growth and re-investment
Strong financial position supports growth and re-investment 30 June 30 June 30 June 30 June Metric ‒ GWA remains in a strong financial position 2015 2016 2017 2018 Net Debt 94.8 88.4 79.8 97.7 ‒ Substantial headroom within $225m syndicated Leverage Ratio banking facility maturing October 2020 Net De
Slide 16: Introduction to GWA's growth strategy
Introduction to GWA’s growth strategy 15
Slide 17: 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% 16 Source: GWA estimates – Australia market only, excludes NZ and Spares.
Slide 18: …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 % NZ Commercial 7% WA 15% 12% NSW Multi- 34% residential 11% VIC 22% Renovation & Detached Replacement housing 53% SA QLD 21% 7% 18% 17 Source: GWA estimates
Slide 19: 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 ➢ Priority. Strengthen core Existing offering through organic and inorganic expansion Existing Adjacent 18 Segment / Category
Slide 20: 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 19 Source: GWA estimates – Australia
Slide 21: …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 ➢ Priority. Strengthen core Existing segment penetration
Slide 22: 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 21
Slide 23: Caroma Smart Command Video
Caroma Smart Command Video 22
Slide 24: Benefits that Smart Command unlocks
Benefits that Smart Command unlocks Sustainability and Decision making Cost reduction Customer / innovation through fact based Consumer experience insights 23
Slide 25: Adding value to our customers to drive growth
Adding value to our customers to drive growth GWA supplies 1 Caroma in 2 toilets in displayed in Commercial new excess of 1300 build. outlets Future R&R opportunity Caroma ‘Care’ SKUs available Strong order in 1100 outlets. bank under- Range to pinning future expand to +200 sales SKUs Joined Up Fore
Slide 26: Significant progress made on strategic priorities
Significant progress made on strategic priorities Corporate priority Progress made ▪ Net sales growth with all major merchants in FY18 CUSTOMER FOCUSED ▪ Joint business planning driving mutually agreed targets and premiumisation Add value to customers through superior and insights targeting specific
Slide 27: FY19 outlook
FY19 outlook Key area FY19 commentary ▪ Market expected to remain relatively resilient; continued momentum in NSW & VIC; partially offset by slower conditions in QLD, WA and NZ Market Activity ▪ R&R segment expected to remain robust, (Residential and Commercial) ▪ Commercial forward order book remai
Slide 28: Formal Business
Formal Business Formal Business
Slide 29: Financial Statements
Financial Statements Financial Statements for the year-ended 30 June 2018. 28
Slide 30: Resolution 1 – Re-election of Darryl McDonough
Resolution 1 – Re-election of Darryl McDonough That Mr Darryl McDonough, 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. 29
Slide 31: Resolution 2 – Re-election of Peter Birtles
Resolution 2 – Re-election of Peter Birtles That Mr Peter Birtles, 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. 30
Slide 32: Resolution 3 – Remuneration Report
Resolution 3 – Remuneration Report That the Remuneration Report for the year ended 30 June 2018 be adopted. 31
Slide 33: Resolution 4 – Approval of Performance Rights
Resolution 4 – 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 220,000 Performance Rights (incorporating the right to acquire shares in the Company) to the Managing Director, Mr Tim Salt, on t
Slide 34: Resolution 5 – Approval of Performance Rights
Resolution 5 – 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 45,000 Performance Rights (incorporating the right to acquire shares in the Company) to the Executive Director, Mr Richard Thornt
Slide 35: Resolution 6 – Remuneration of Non-executive Directors
Resolution 6 – Remuneration of Non-executive Directors That for the purpose of ASX Listing Rule 10.17, clause 10.14 of the Company’s Constitution and for all other purposes, the maximum aggregate remuneration which may be paid to the non-executive directors in any year be increased from $1,095,000 t
Slide 36: 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. 35
Slide 37: GWA Annual General Meeting
GWA Annual General Meeting 26 October 2018