Gwa Group Limited · ASX:GWA
Gwa — Goldman Sachs Small & Mid-Cap Conference 2017
27 slides from Gwa's conference presentation, Apr 28, 2017
Slide 1: ASX cover letter for Goldman Sachs conference presentation
Group Linnied ABN 15 055 $64 380 t Gt / 3109 GOCD T G4 7 3852 22191 viva. Qeva Group .COM aa 7 Eagleview Place Eagle Farm OLD 4009 28 April 2017 GPO Box 1411 Brishane OLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Goldman Sachs Small & Mid-Cap Conference P
Slide 2: GWA Presentation Goldman Sachs Conference
GWA Presentation Goldman Sachs Conference 28 April 2017 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 About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 3
Slide 5: A focused business with strong market position
A focused business with strong market position Strategic About GWA Group strategy progress Summary GWA is a leading designer and supplier of branded building fixtures to households and commercial buildings Our business Our Core Brands Our strengths Leading designer and supplier Significant scale acr
Slide 6: Strongly re-positioned for growth
Strongly re-positioned for growth Strategic About GWA Group strategy progress Summary From GWA today Diverse Building Products business spread across Clear focus on two segments with strong market numerous segments (Dux, Brivis, Gliderol exited) positions and market leading brands in $2bn category S
Slide 7: Operating model meets local needs with global scale
Operating model meets local needs with global scale Strategic About GWA Group strategy progress Summary Our Value Creating Operating Model Consumer Product Manu- Solution Customer Distribution insights Design facturing Expertise Service Research drives Local design Collaborative, Extensive Ability t
Slide 8: Strong and growing continuing operations
Strong and growing continuing operations Strategic About GWA Group strategy progress Summary FY16 Revenue by Division (A$m) FY16 EBIT by Division (A$m)* 7.3 98 342 84.6 Bathrooms & Kitchens Door & Access Bathrooms & Kitchens Door & Access Group Revenue (A$m) Group EBIT (A$m) 460 90 78.3 440 72.8 440
Slide 9: Strong financial position to fund growth
Strong financial position to fund growth Strategic About GWA Group strategy progress Summary 30 June 30 June 31 Dec 30 June 31 Dec Metric 2014 2015 2015 2016 2016 Strong credit metrics Net Debt 149.4 94.8 90.8 88.4 92.0 Leverage Ratio Credit metrics continue to be consistent with Net Debt / EBITDA 1
Slide 10: Margin resilience through the cycle
Margin resilience through the cycle Strategic About GWA Group strategy progress Summary EBIT (A$m) and margin (%) 90 20 17.1 17.8 17.5 GWA focused on maintaining margin resilience 80 18 16.1 through the cycle: 70 14.6 78.3 16 72.8 14 60 64.5 12 ~50% exposure to Renovations and Replacement 50 55 10 m
Slide 11: Strong presence in R&R, low exposure to multi-res
Strong presence in R&R, low exposure to multi-res Strategic About GWA Group strategy progress Summary B&K revenue by end market (%) D&A revenue by end market (%) Commercial Residential 23% 22% Multi-Res 3% Multi- Residential 11% Renovation & Replacement Residential Renovation & Commercial 52% Replac
Slide 12: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 11
Slide 13: Strategy – transformation from push to pull
Strategy – transformation from push to pull Strategic About GWA Group strategy progress Summary From Push To Pull Past: Manufacturing Driven Current: Customer focused Future: Customer and consumer centric gwagroup.com.au 12
Slide 14: Group strategy on a page
Group strategy on a page Our Mission: To build GWA as the most trusted and respected company in the building sector Our Purpose: MAKING LIFE BETTER ……. with simple, superior water solutions with a superior range of access and security systems Bathrooms & Kitchens Door & Access Systems GWA Operationa
Slide 15: D&A – build on residential strength; grow in commercial/multi-res
D&A – build on residential strength; grow in commercial/multi-res Strategic About GWA Group strategy progress Summary D&A approach by market segment Commercial Oportunity to grow in 23% Commercial /Multi-Res Segment Multi-Res 3% Continue to grow in Commercial Locksmithing Services Renovation & Resid
Slide 16: B&K - refocus on R&R, grow in commercial, be selective in multi-res
B&K - refocus on R&R, grow in commercial, be selective in multi-res Strategic About GWA Group strategy progress Summary B&K approach by market segment Residential 22% Renovation & Replacement Grow effectively in Residential 52% segment Refocus on R&R segment – largest and less cyclical segment Multi
Slide 17: 1HFY17 revenue growth ahead of weighted end market growth
1HFY17 revenue growth ahead of weighted end market growth Strategic About GWA Group strategy progress Summary 1 2 GWA end market exposure Market activity FY17 Renovation & Overall market remains relatively flat Replacement Residential Increased by 1% (MAT) 22% Residential Strong pipeline remains fro
Slide 18: R&R segment remains stable
R&R segment remains stable Strategic About GWA Group strategy progress Summary Renovation Activity (A$bn) Sources: ABS, ANZ Research gwagroup.com.au 17
Slide 19: Expected to remain stable as housing turnover below peak
…expected to remain stable as housing turnover below peak Strategic About GWA Group strategy progress Summary Housing sales (‘000s) Sources: ABS, ANZ Research gwagroup.com.au 18
Slide 20: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 19
Slide 21: Deliver consistent consumer experience to grow R&R
Deliver consistent consumer experience to grow R&R Strategic About GWA Group strategy progress Summary Digital touch points STAGES TRIGGER/ IDEATION RESEARCH PROJECT PLANNING CONSTRUCTION COMPLETION RENOVATION JOURNEY Physical touch points gwagroup.com.au 20
Slide 22: Build on core assets and brands to drive revenue
Build on core assets and brands to drive revenue Strategic About GWA Group strategy progress Summary Territories shaping our innovation and NPD pipeline Ease of installation Taps as fashion Style leadership Aged care Ongoing efficiency Customer segment opportunities gwagroup.com.au 21
Slide 23: NPD and innovation leveraging strong brands
NPD and innovation leveraging strong brands Strategic About GWA Group strategy progress Summary Innovative technology in sanitaryware Caroma Cleanflush – innovative technology, combining rimless bowl with Caroma flush and flow technology Creates superior flushing performance and better hygienic expe
Slide 24: Caroma Cleanflush video
Caroma Cleanflush video Strategic About GWA Group strategy progress Summary gwagroup.com.au 23
Slide 25: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 24
Slide 26: Summary - solid progress on group strategy
Summary - solid progress on group strategy Strategic About GWA Group strategy progress Summary GWA significantly re-positioned for growth Clear focus on two core divisions with strong ability to compete in ~$2 billion addressable market Solid financial position supports growth agenda with strong cas
Slide 27: GWA Presentation Goldman Sachs Conference
GWA Presentation Goldman Sachs Conference 28 April 2017 gwagroup.com.au
GWA Group — Goldman Sachs Small & Mid-Cap Conference 2017 on 6ix