Gwa Group Limited · ASX:GWA
Gwa — FY2016 Earnings Presentation
26 slides from Gwa's earnings presentation, Aug 22, 2016
Slide 1: ASX cover letter: Annual Results Presentation FY2016
GWA Group Limited S ABN 15 055 964 280 t 6173109 6000 f 6173852 2201 Wwen.gwagroup.com.au 7 Eagleview Place Eagle Farm OLD 4009 GPO Box 1411 Brisbane QLD 4001 22 August 2016 risbane Ql ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual Results Presentation for t
Slide 2: Results Presentation 22 August 2016
Results Presentation 22 August 2016 gwagroup.com.au
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. gwagroup.com.au 2
Slide 4: Agenda
Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 3
Slide 5: Agenda
Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 4
Slide 6: Significant progress made in FY16
Significant progress made in FY16 Overview Group results Segment results Outlook Appendix * #1 • Strong financial result compared to prior year • Revenue up 3% • Net Profit After Tax up 15% • Earnings Before Interest and Tax up 8% • Improved Group EBIT margin - up 0.7 ppts • Return on Funds Employed
Slide 7: Result consistent with market guidance
Result consistent with market guidance Overview Group results Segment results Outlook Appendix What we said Results for FY16 EBIT higher in 2nd half • EBIT in 2nd half up 13% on first half 1 vs 1st half FY16 ~$10m reduction in • Inventory reduction of $14m in 2nd half – contributes 2 working capital
Slide 8: Improvement across all key metrics
Improvement across all key metrics Overview Group results Segment results Outlook Appendix Normalised from Continuing Operations* Revenue Gearing Ratio 3.2% 2pp $439.7m 22% Operating EBITDA 3.2% Cashflow $84.3m 12.2% $91.7m EBIT EPS 7.6% 28.6% $78.3m 19.0 cents Dividend NPAT 14.8% Final Ordinary 8c
Slide 9: Good progress on strategy
Good progress on strategy Overview Group results Segment results Outlook Appendix Strategic Priority Update on Progress Leverage and build on core assets & • Launch of Cleanflush – initial sales strong, ranged in 200+ Reece showrooms brands to drive revenue and market • NPD pipeline approved and pri
Slide 10: Weighted end market growth 4% in FY16
Weighted end market growth 4% in FY16 Overview Group results Segment results Outlook Appendix 1 2 GWA end market exposure Market activity FY16 Residential Strong pipeline remains from lag Residential detached house between approvals and completions 23% completions Increased by 5% in FY16 Multi-Resid
Slide 11: Agenda
Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 10
Slide 12: Strong increase in earnings, NPAT & EPS
Strong increase in earnings, NPAT & EPS Overview Group results Segment results Outlook Appendix FY15 FY16 A$m Continuing Discont'd Group Continuing Discont'd Group Operations Operations Total Operations Operations Total Normalised EBITDA 81.7 5.1 86.8 84.3 (0.5) 83.8 EBIT 72.8 1.5 74.3 78.3 (0.6) 77
Slide 13: Net profit up 15% on prior period
Net profit up 15% on prior period Overview Group results Segment results Outlook Appendix Normalised net profit from Continuing Operations A$m FY15 FY16 % Change Continuing Operations up Revenue 426.2 439.7 3.2% 15% on prior corresponding period EBIT 72.8 78.3 7.6% Interest Expense (7.3) (6.6) -9.6%
Slide 14: Continuing Operations EBIT up 8%
Continuing Operations EBIT up 8% Overview Group results Segment results Outlook Appendix 90 Improved mix in B&K from 14.5 (17.1) higher margin products 85 and price increases offset by decline in A$ vs prior year 80 7.5 78.3 Market volume growth A$M 75 72.8 0.6 higher in Multi-Res and lower margin p
Slide 15: Operating cashflow up 12%
Operating cashflow up 12% Overview Group results Segment results Outlook Appendix Cash flow from Operations FY15 FY16 A$M Significant improvement in EBITDA 81.7 84.3 Operating cashflow in 2nd half Net movement in Working (1.8) 6.3 Capital Lower inventory and focus Other 1.8 1.1 on integrated busines
Slide 16: Financial position strengthened further
Financial position strengthened further Overview Group results Segment results Outlook Appendix 30 June 30 June 31 Dec 30 June Metric Net debt reduced by 7% on FY15 2014 2015 2015 2016 Net Debt 149.4 94.8 90.8 88.4 A$M times 190 16 Leverage Ratio 14 Net Debt / EBITDA 1.7 1.1 1.2 1.1 170 150 12 Inter
Slide 17: Agenda
Agenda Overview Group results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 16
Slide 18: Bathrooms & Kitchens revenue up 4%
Bathrooms & Kitchens revenue up 4% Overview Group results Segment results Outlook Appendix Revenue up 4% broadly in Continuing Operations A$m FY15 FY16 % Change line with end markets Revenue 330.0 342.0 3.6% Strong sales growth QLD EBITDA 87.7 86.6 -1.3% (+12%), NSW and VIC (+6%), partially offset b
Slide 19: Door & Access Systems revenue up 2%
Door & Access Systems revenue up 2% Overview Group results Segment results Outlook Appendix Revenue up 2% on prior year Continuing Operations A$m FY15 FY16 % Change Stronger sales in NSW Revenue 96.2 97.7 1.6% (+7%), VIC (+12%) offset by EBITDA 8.6 8.7 1.2% WA (-7%) EBIT 7.2 7.3 1.4% D&A business ha
Slide 20: Agenda
Agenda Overview Group Results Segment results Outlook Appendix Overview Tim Salt Managing Director Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt gwagroup.com.au 19
Slide 21: FY17 Outlook
FY17 Outlook Overview Group Results Segment results Outlook Appendix Renovation & Replacement segment expected to be relatively stable 1 Market activity Recent approvals data point to expected slow-down in construction, however, continued lag between approvals and completions and pipeline of work, y
Slide 22: Results Presentation
Results Presentation 22 August 2016 gwagroup.com.au
Slide 23: Appendix
GWA Group Limited Appendix GS gwagroup.com.au
Slide 24: Significant items
Significant items Overview Group results Segment results Outlook Appendix Significant Items A$m FY15 FY16 Continuing Operations Factory Closures (39.3) 0.0 Restructuring Costs (13.3) 0.0 Other 1.0 0.0 Significant Items from Cont. Ops (51.6) 0.0 Pre Tax Discontinued Operations Non cash impairment (25
Slide 25: Appendix – Proforma 5 year summary
Appendix – Proforma 5 year summary Overview Group results Segment results Outlook Appendix A$m FY12 FY13 FY14 FY15 FY16 Revenue Bathrooms & Kitchens 297.8 286.3 306.6 330.0 342.0 Door & Access Systems 78.9 89.8 92.8 96.2 97.7 Total Cont'd Ops 376.7 376.1 399.4 426.2 439.7 Discontinued Ops ** 225.4 1
Slide 26: Results Presentation
Results Presentation 22 August 2016 gwagroup.com.au