Slide 1: Financial Results Presentation for the Year Ended 30 June 2021
16 August 2021 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Financial Results Presentation for the Year Ended 30 June 2021 We enclose the following document for immediate release to the market: • Results Presentation On 16 August 2021 at 10:00am (AEST), GWA will
Slide 2: Results Presentation
Results Presentation Year ended 30 June 2021 16 August 2021 1
Slide 3: Presenters
Presenters Urs Meyerhans Patrick Gibson Managing Director and CEO Group Chief Financial Officer 2
Slide 4: Agenda
Agenda ‒ Overview ‒ Group Financial Results ‒ Business Performance ‒ CEO Initial Impressions ‒ Strategic Focus ‒ Summary & FY22 Outlook ‒ Q&A ‒ Appendix 3
Slide 5: Overview
01 | Overview lS GWA | METHVEN | cLan« | dorf
Slide 6: Solid 2H improvement provides momentum for FY22
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Solid 2H improvement provides momentum for FY22 Improved 2H FY21 v 1H FY21 performance ‒ Revenue up 6%; EBIT up 13%; EBIT margin up 120 bps - demonstrates operating leverage ‒ Positive sale
Slide 7: Continued focus on Safety and Sustainability
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Continued focus on Safety and Sustainability Safety key outcomes FY21 Total Injury Frequency Rate 14 ‒ All GWA sites accredited to new global safety standard, ISO45001 12 ‒ Mental health am
Slide 8: Group Financial results
02 | Group Financial results 1G GWA ; Group Limited | METHVEN L dorf
Slide 9: Revenue up 2% however EBIT impacted by weaker Commercial segment
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Revenue up 2% however EBIT impacted by weaker Commercial segment A$m Normalised¹ FY20 FY21 % Change Revenue 398.7 405.7 1.8% ‒ Revenue up 2% reflects improved residential markets in 2H and
Slide 10: Continued operational discipline helps mitigate weaker 1H markets
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Continued operational discipline helps mitigate weaker 1H markets Normalised¹ Continuing Operations EBIT Bridge (A$M) ‒ Volume/Mix: Reflects impact of COVID-19 on volumes primarily in 1H an
Slide 11: Strong cash generation maintained – operating cashflow up 16%
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Strong cash generation maintained – operating cashflow up 16% ‒ Continued strong focus on cash management Cash flow from Continuing Operations A$M FY20 FY21 EBITDA 92.2 88.4 ‒ Operating cas
Slide 12: Strong financial position maintained – credit metrics enhanced
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Strong financial position maintained – credit metrics enhanced 30 June 30 June 30 June 30 June 30 June ‒ GWA remains in a strong financial position – credit Metrics1 2017 2018 2019 2020 202
Slide 13: Business Performance
03 | Business Performance 2|S GWA | METHVEN LAR} dorf
Slide 14: Revenue uplift in 2H as markets improve
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Revenue uplift in 2H as markets improve FY21 Revenue vs pcp (A$) Revenue commentary $ Revenue & % of Group 1H 2H FY Australia ‒ 1H impacted by slowdown in the project segment and uncertaint
Slide 15: Methven integration complete
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Methven integration complete ‒ Revenue up in FY21 with strong growth in New Zealand and 7% International diversifying geographic base ‒ Integration cost synergies achieved target of A$3m in
Slide 16: Market driven innovation and new product development
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Market driven innovation and new product development ‒ Creation of the Sydney and Auckland centres of excellence ‒ Technical, design and sourcing capability, test rigs ‒ Significant investm
Slide 17: Underpinned by centre of excellence
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Underpinned by centre of excellence ‒ New vertical and horizontal test rigs at Prestons Innovation and Distribution Centre enable modelling of hydraulic impacts in Commercial buildings and
Slide 18: CEO Initial Impressions
04 CEO Initial Impressions 17
Slide 19: Initial impressions positive
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Initial impressions positive People ‒ Experienced and highly capable senior team ‒ Engaged and passionate workforce focused on customer service Products/brands ‒ Market–leading brands in co
Slide 20: Strategic Focus
05 | Strategic Focus 0G Solid | meTHVEN | cLAn« | dorf
Slide 21: Strategy on a page
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Strategy on a page Making everyday water experiences extraordinary – today, and for tomorrow To be the trusted and integrated solutions partner Strategy in the delivery of sustainable water
Slide 22: Our strategic focus
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook Our strategic focus Integrated and valuable customer experience by being 1. Deliver great customer experiences easy to do business with and consistent in delivery Connect, deepen and levera
Slide 23: Summary and FY22 outlook
06 Summary and FY22 outlook 22
Slide 24: FY22 outlook
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook FY22 outlook¹ Key area FY22 commentary ‒ Continued momentum expected in residential detached completions - HomeBuilder, consumer sentiment Market activity – strong momentum ‒ R&R in Residen
Slide 25: GWA well positioned to capitalise on improving market conditions
Financial Business CEO Initial Strategic Summary & Overview results performance impressions focus FY22 Outlook GWA well positioned to capitalise on improving market conditions • Significantly improved 2H FY21 performance provides positive momentum into FY22 • Cashflow/balance sheet remain strong to
Slide 26: Q&A
07|Q&A 3|& Go nies | metHvEN | cine | dorf
Slide 27: Disclaimer
Disclaimer This Presentation contains projections and other prospective statements that represent GWA's assumptions and views, including expectations and projections about GWA's business, the industry in which it operates and management’s own beliefs and assumptions. Such matters require subjective
Slide 28: Results Presentation
Results Presentation Year ended 30 June 2021 16 August 2021 27
Slide 29: Appendix
08 | Appendix i — 23|& GWA C
Slide 30: FY22 Key Assumptions
FY22 Key Assumptions1 Area Assumption Australian market backdrop BIS total building activity data2 is indicating market growth of +2% in FY22 Customer stock on hand Not expecting any significant customer de/restocking in FY22 Price increase Effectively ~3% was implemented from 1 July 2021 across Aus
Slide 31: FY21 dividend increased marginally on FY20
FY21 dividend increased marginally on FY20 1.0 9.5 9.5 9.0 8.0 3.5 6.5 8.5 9.0 7.5 8.0 7.0 6.0 6.0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Special Final ordinary Interim ordinary 30
Slide 32: Increased presence in R&R segment and improved geographic diversification
Increased presence in R&R segment and improved geographic diversification provide resilience through the cycle Segment1 Category Valves Commercial 1% Basins, Sinks, Tubs & 12% Baths 18% Multi-resi 8% Sanitaryware 43% Resi R&R 19% 61% Taps & Showers 38% Geography Brand Other United Asia 17% Kingdom 1
Slide 33: Housing turnover increasing at a dramatic rate following FY20 decline
Housing turnover increasing at a dramatic rate following FY20 decline 70 60 ‘000s per month 50 40 30 20 10 0 95 97 99 01 03 05 07 09 11 13 15 17 19 21 32 Source: ANZ Bank, data to June 2021
Slide 34: Australian population growth negative due to border closures
Australian population growth negative due to border closures Annual net overseas migration & Australian population growth 350 2.5 300 2.0 250 1.5 200 150 1.0 100 0.5 50 0 0.0 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Annua
Slide 35: Number of loans, per month
34 Number of loans, per month 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016 Jan-2017 Feb-2017 Mar-2017 Apr-2017 May-2017 Jun-2017 Source: ABS, data to June 2021 Jul-2017 Aug-2017 Sep-2017 Oct-2017 Nov-2017 Dec-2017 Total number of loans Jan-
Slide 36: Quantity Completed Annually
Quantity Completed Annually 20,000 40,000 60,000 80,000 0 100,000 120,000 140,000 160,000 FY-1975 35 FY-1976 FY-1977 FY-1978 FY-1979 FY-1980 FY-1981 FY-1982 FY-1983 FY-1984 FY-1985 FY-1986 FY-1987 FY-1988 FY-1989 FY-1990 FY-1991 FY-1992 FY-1993 FY-1994 FY-1995 Actual ¹ 19% of GWA’s Australian revenu
Slide 37: Australian Market Context – Commercial work done expected to improve FY22 onwards
Australian Market Context – Commercial work done expected to improve FY22 onwards, A&A to continue at high levels Commercial¹ Alterations & Additions² 60,000 12,000 50,000 10,000 $m Approved Annually $m Work Done 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2,000 0 0 Actual Forecast Actual Forecast
Slide 38: Quantity Completed Annually
Residential completions rose by 7% during FY21. Completions expected to rise ~21,000 or 19% in FY22 (Completions’ lag vs. approvals ~12 months) 160,000 140,000 120,000 Quantity Completed Annually 100,000 80,000 12 mths 12 mths 60,000 12 mths 40,000 20,000 0 Approvals - Actual Completions - Actual 37
Slide 39: Quantity Completed Annually
Multi-residential completions expected to fall by (13,000) or (17)% in FY22 (Completions’ lag vs. approvals ~12-24 months) 140,000 120,000 Quantity Completed Annually 100,000 80,000 12 mths 60,000 40,000 20,000 18 mths 18 mths 0 Approvals - Actual Completions - Actual 38 Source: BIS Oxford Economics
Slide 40: Group – improvement in 2H FY21
Group – improvement in 2H FY21 A$m Normalised¹ 1H FY21 2H FY21 % Change FY21 Revenue 197.2 208.5 5.7% 405.7 EBITDA 42.2 46.2 9.5% 88.4 EBIT 32.1 36.4 13.4% 68.5 NPAT 20.0 22.3 11.5% 42.3 EBIT Margin % 16.3% 17.5% 1.2pp 16.9% EPS 7.6c 8.4c 0.8c 16.0 Significant Items 1H FY21 2H FY21 % Change FY21 Pre
Slide 41: Results Presentation
Results Presentation Year ended 30 June 2021 16 August 2021 40