Slide 1: ASX cover letter: Annual Results Presentation
GWA Group Limited ‘ABN.18 055 984 980 t 6173109 6000 f 617 3852 2201 \vaww.gwagroup.com.au Level 2, HO (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 14 August 2012 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual Res
Slide 2: For personal use only
For personal use only
Slide 3: Annual Results Presentation
Annual Results Presentation 14 August 2012 Presented by: Peter Crowley Title: Managing Director
Slide 4: Major Successes & Challenges for the Year
GWA Group Limited GS Major Successes & Challenges for the Year \ Restructuring completed - Plant closures / rationalisation resulting in 8% lower workforce, funded through non core property sales ¥ Construction and commissioning of Moss Vale water heater factory upgrade completed \ Sale of non core
Slide 5: Result Impacted by Poor Underlying Demand
Ss GWA Group Limited Result Impacted by Poor Underlying Demand Headline sales down 6%, underlying sales down 12% after adjusting for full year of Gliderol Macro drivers of reduced underlying revenue - Decline in residential housing 4% — Lower renovation spending 2% - Cessation of solar rebates and s
Slide 6: 2011/12 has Positioned Businesses to Deliver Growth when Conditions Improve
SG GWA Group Limited 2011/12 has Positioned Businesses to Deliver Growth when Conditions Improve Company structure is working effectively, comprising three core Australian Building Fixtures and Fittings Divisions leveraging market opportunities Lower cost supply chains established from restructuring
Slide 7: Strategic Priorities are More Focussed to Sustain Competitive Advantage
GWA Group Limited S Strategic Priorities are More Focussed to Sustain Competitive Advantage = Our market strategy is aimed to deliver strong value propositions through — Product innovation — Brand management - Developing and supporting aligned channels = Our operational strategy is to focus on marke
Slide 8: Results - Year to June 2012
| GS GWA Group Limited Results —Year to 30 June 2012 Full Year Full Year $Million 2012 2011 Sales Revenue 602.1 641.6 Trading EBIT 75.4 99.9 EBIT Margin 12.5% 1.525% Trading Profit after Tax for Continuing Businesses 45.6 59.0 Net Profit after Tax Incl Restructuring and Disc. Businesses 39.7 64 Chan
Slide 9: Lower Trading EBIT is Driven by Sales Decline
GS GWA Group Limited Lower Trading EBIT is Driven by Sales Decline XIN pue anion, 0Sealou] 4102 J84IO—-sBueg YQ 4809 20d Gh0e Reduced housing activity, cessation of Government solar rebates and stimulus spending Minor currency / price movements Negative impact of lower throughput on overhead recover
Slide 10: Ongoing Restructuring Continues to Improve Productivity with 8% Decline in Workforce
| GS GWA | Group Limited Ongoing Restructuring Continues to Improve Productivity with 8% Decline in Workforce Total Employees June 2011 2150 Divestments (196) Restructuring & Operational (166) Total Employees June 2012 1788
Slide 11: Building Activity has Declined to Unsustainable Levels
| Group Limited Building Activity has Declined to Unsustainable Levels New Dwelling Activity 12 Month Moving Average 190,000 180,000 170,000 160,000 450,000 140,000 Moving Annual Numbers 130,000 120,000 +——\ e) £ Ss Ss < se Source: BIS Shrapnel —e— Approvals —s— Commencements —a— Completions NX N s
Slide 12: Bathrooms & Kitchens: Poor Trading Conditions Impacting Demand
| Sle Group Limited Bathrooms & Kitchens Poor Trading Conditions Impacting Demand A000 June 12 June 11 % Change Sales 297.8 332.4 -10% ® Sales reflect cessation of Government stimulus and Trading : poor trading conditions ePee 61.0 78.9 =e Increased sales in DIY EBIT% 20.5% 23.7% channels =» Wetheri
Slide 13: Heating & Cooling: Lower Demand for Environmental Water Heaters
| G om Group Limited Heating & Cooling Lower Demand for Environmental Water Heaters A‘000 June 12 June 17 Sales 165.8 LOSeE Trading EBIT 13.3 17.2 EBIT% 8.0% 8.8% ROFE 14.1% 19.1% aa ecosmartr Solar ag HEAT ar SOURCE apac % Change -15% -23% Adverse sales mix due to cessation of Government rebates on
Slide 14: Door & Access Systems: Impact of Lower Residential Building Activity
G GWA Group Limited Door & Access Systems impact of Lower Residential Building Activity A’000 June 12 June 11 % Change Sales 138.6 114.0 Trading EBIT 14.1 2 EBIT% 10.1% 15.0% ROFE 16.1% 19.0% GLIDEROL GARAGE DOORS @) Austral Lock” [A] Hillaldam SLIDING DOOR SYSTEMS Sales increased due to full years
Slide 15: Strong Cash Flow Reflects Improved Supply Chain and Operational Efficiency
| GS GWA | | Group Limited Strong Cash Flow Reflects Improved Supply Chain and Operational Efficiency plus Sale of Non Core Assets $Million 2012 2011 Cash Generated from Continuing Operations 110.5 111.0 Cash Generated from Discontinued Operations -2.0 16.6 Restructuring Cash Flows -9.6 S15 Cash gen
Slide 16: Financial Metrics Remain Strong
GWA Group Limited GS Financial Metrics Remain Strong Net Debt ($M) Gearing Ratio (Net Debt / Net Debt Plus Equity) Leverage Ratio (Net Debt / EBITDA) Debt Maturity Profile July 2014 July 2016 2012 174.5 29% 1.87 200.0 100.0 2011 198.1 31% 1:53
Slide 17: Maintenance of Fully Franked Dividend Supported by Strong Cash Flow
SS GWA | Group Limited Maintenance of Fully Franked Dividend Supported by Strong Cash Flow $Million 2012 Trading profit after tax 45.6 Trading earnings per share 15.1i¢ Reported earnings per share 13.1¢ Ordinary Dividend = Interim 9.5¢ = Final 8.5¢ = Total (fully franked) 18.0¢ 2011 59.0 19.6¢ 21.0¢
Slide 18: Dividend Policy Changed to Reflect Adverse Impact of Market Conditions
S GWA | Group Limited Dividend Policy Changed to Reflect Adverse Impact of Market Conditions Current policy states “Absent an unexpected decline in profitability, ordinary dividends will be maintained at 18.0 cents per share until it equals 70% to 80% of earnings, at which time it wil increase in li
Slide 19: GWA's Strategic Agenda for Inorganic Growth is Unchanged
GS GWA Group Limited GWA’s Strategic Agenda for Inorganic Growth is Unchanged We currently have $95 million of unused loan facilities and the DRP is being reactivated to ensure we are in position to respond to opportunities Focus is on growth through product (eg Austral Lock) and/or market adjacenci
Slide 20: 2012/13 Outlook
GWA Group Limited GS 2012/13 Outlook = Residential housing approvals have improved in last quarter following decline through 2011/12 » First half year operating profit will decline against same period last year but higher building approvals should flow through to sales in late 2012 » Restructuring i
Slide 21: Non-IFRS Financial Measures
GWA Group Limited SG Non-IFRS Financial Measures Given the significance of the restructuring expenses and discontinued operations 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
Slide 22: For personal use only
For personal use only