Gwa Group Limited · ASX:GWA
Gwa — Shareholder Meeting (October 2019)
32 slides from Gwa's shareholder meeting presentation, Oct 25, 2019
Slide 1: ASX cover letter: AGM Presentation to Shareholders
25 October 2019 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 Director’s Address to Shareholders at the GWA Group Limited Annual Genera
Slide 2: Superior Solutions for Water - Annual General Meeting
Superior Solutions for Water Annual General Meeting 25 October 2019
Slide 3: Agenda
Agenda 01 Chairman’s Address 02 CEO Presentation 03 Formal Business 04 Close 2
Slide 4: Chairman's Address
o1 | Chairman's Address 3 iS GWA | METHVEN | oi Ae « | dorf Group Limited
Slide 5: Solid FY19 result
Solid FY19 result GWA performed ahead of the market and delivered a solid financial result ‒ FY19 represents our 4th annual period of increased market share ‒ B&K revenue steady despite 1.4% decline in GWA’s addressable market ‒ Strong cost discipline delivered stable EBIT margin ‒ Continued robust
Slide 6: Sustainability at GWA
Sustainability at GWA Our approach to sustainability is based around two central objectives: ‒ We operate in a sustainable manner across our business by managing our resources as efficiently as possible and by acting in a socially responsible manner; and ‒ We provide a range of products and systems
Slide 7: Remuneration
Remuneration Board Review of executive remuneration to ensure it remains aligned with remuneration strategy and market practice. Minor changes in FY20: ‒ Strengthened clawback provisions under Long Term Incentive (LTI) Plan ‒ LTI Plan revised to provide greater flexibility for executives in timing o
Slide 8: CEO's Presentation
02 CEO’s Presentation 7
Slide 9: Workplace Health and Safety
Workplace Health and Safety “We care for each other” is one of our cultural pillars – our objective remains to ensure everyone is safe... every day GWA Safety - Rolling 12 months Lost Time Injury frequency rate Substantial progress made in FY19: 6 ‒ Significant reduction in LTI¹s in FY19 5 ‒ All sit
Slide 10: FY19 - Solid financial result
FY19 - Solid financial result Normalised¹ from Continuing Operations² Revenue ROFE $381.7m 6.4% n/a n/a EBITDA Operating Cashflow $82.3m 2.7% $94.2m 64.4% EBIT EPS $77.4m 1.5% 19.6 cents 3.2% NPAT FY Dividend³ $51.8m 3.2% 18.5 cents fully-franked 2.8% ¹Normalised is before $7.6m in significant items
Slide 11: FY19 - Solid financial result (excluding Methven)
FY19 - Solid financial result (excluding Methven) Normalised¹ from Continuing Operations (ex. Methven)² Revenue ROFE $358.7m 0.0% 20.2% (1.0)pp EBITDA Operating Cashflow $80.8m 0.8% $91.1m 59.0% EBIT EPS $76.4m 0.2% 19.5 cents 2.8% NPAT FY Dividend $51.6m 2.8% 18.5 cents fully-franked 2.8% ¹Normalis
Slide 12: FY19 - Continued strong improvement in operating cashflow
FY19 - Continued strong improvement in operating cashflow Cash flow from Continuing FY-2018 FY-2019 ‒ Continued strong performance in operating cashflow Operations A$M EBITDA 80.2 82.3 ‒ Innovation & Distribution Centre at Prestons NSW driving: Net movement in Working Capital (20.9) 13.9 ‒ reduction
Slide 13: FY19 - Strong financial position maintained
FY19 - Strong financial position maintained Metric 30 June 30 June 30 June 30 June 30 Jun ‒ GWA remains in a strong financial position post the 2015 2016 2017 2018 2019 acquisition of Methven Net Debt 94.8 88.4 79.8 97.7 141.9 Leverage Ratio ‒ Increase in net debt reflects acquisition of Methven Net
Slide 14: GWA strategy for growth
GWA strategy for growth We make life better with superior solutions for water Build GWA as the most trusted and respected water solutions company Maximise shareholder value creation – NPAT growth, ROFE, TSR CUSTOMER FOCUSED CONSUMER DRIVEN Add value to customers through superior execution, Deliver e
Slide 15: FY19 - Continued progress on strategic initiatives
FY19 - Continued progress on strategic initiatives Corporate priority Progress made ▪ Joint business planning in B&K drives enhanced ranging / showroom presence CUSTOMER FOCUSED ▪ Trade and Retail sales team targeting merchants to access core Residential R&R Add value to customers through superior o
Slide 16: Methven acquisition strengthens water solutions strategy
Methven acquisition strengthens water solutions strategy About Methven Alignment with GWA Strategy Methven is a designer and manufacturer of Accelerates GWA’s strategy to deliver superior water solutions showers, taps and valves based in Auckland: Strengthens GWA’s position in Bathrooms and Kitche
Slide 17: Caroma Smart Command
Caroma Smart Command® 16 iS GWA | METHVEN | oi Ae « | dorf Group Limited
Slide 18: Caroma Smart Command
CAROMA © SMART COMMAND
Slide 19: Caroma Smart Command NABERS Impact
Caroma Smart Command NABERS Impact +25% Overall reduction in the total water consumption of a typical building A recent analysis by Norman Disney Young found The Caroma Smart Command range was identified as having the potential to provide benefit towards the NABERS Water rating tool by providing a m
Slide 20: Smart Command Sustainability Impact: Green Star Credits
Caroma Smart Command Sustainability Impact +6 GREEN STAR CREDITS A recent analysis by Norman Disney Young found by installing Smart Command your building can obtain an additional 6-8 credits towards your Green Star Rating under Design & As Built as well as 8-10 under green star performance rating to
Slide 21: Caroma Smart Command generating positive market engagement
Caroma Smart Command® generating positive market engagement Key area Progress ▪ Caroma Smart Command® now installed in 22 sites across Australia / NZ – solid bank of additional projects in the pipeline Expanded footprint ▪ Strong customer engagement with large developers in multiple commercial segme
Slide 22: FY20 Outlook
FY20 Outlook Key area FY20 Commentary In the context of the current economic uncertainty we provide the following detail: ▪ Reported sales Q1 FY20 up 17% - includes revenue from Methven sales in Q1 FY20 but not Q1 FY19 ▪ Total (proforma) sales down (8)% vs Q1 FY19, of which approximately half due to
Slide 23: Financial Statements
Financial Statements Financial statements for the year ended 30 June 2019 22
Slide 24: Resolution 1 – Re-election of John Mulcahy
Resolution 1 – Re-election of John Mulcahy That John Mulcahy 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. 23
Slide 25: Resolution 2 – Re-election of Stephen Goddard
Resolution 2 – Re-election of Stephen Goddard That Stephen Goddard 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. 24
Slide 26: Resolution 3 – Election of Alison Barrass
Resolution 3 – Election of Alison Barrass That Alison Barrass who retires as a director of the Company in accordance with clause 10.11 of the Company’s Constitution, be re- elected as a director of the Company. 25
Slide 27: Resolution 4 – Remuneration Report
Resolution 4 – Remuneration Report That the Remuneration Report for the year ended 30 June 2019 be adopted. 26
Slide 28: Resolution 5 – Approval of grant of performance rights
Resolution 5 – Approval of grant 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 355,000 Performance Rights (incorporating the right to acquire shares in the Company) to the Managing Director, Mr Tim S
Slide 29: Resolution 6 – Approval of grant of performance rights
Resolution 6 – Approval of grant 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 Richa
Slide 30: Resolution 7 – Financial Assistance
Resolution 7 – Financial Assistance That, in accordance with sections 260A and 260B(2) of the Corporations Act, and for all other purposes, approval is given for: (a) the provision of the Proposed Financial Assistance (as defined in the Explanatory Memorandum accompanying this Notice of Meeting) by
Slide 31: 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. 30
Slide 32: Superior Solutions for Water - Annual General Meeting
Superior Solutions for Water Annual General Meeting 25 October 2019