Gwa Group Limited · ASX:GWA
Gwa — FY2017 Earnings Presentation
25 slides from Gwa's earnings presentation, Aug 21, 2017
Slide 1: ASX cover letter: Annual Results Presentation
i GS GWA | Group Limited f 61 7 3852 2201 WWW. Gevagroup.cOMm. ati 7 Eagleview Place Fagle Farn: 0: D 4009 21 August 2017 GPO Bax 1411 Brisbane QLD 4901 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual Results Presentation for the Year Ended 30 June 2017 We en
Slide 2: Results Presentation
Results Presentation Year ended 30 June 2017 21 August 2017 Page 1
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. Page 2
Slide 4: Agenda
Agenda GWA Group Limited G Page 3
Slide 5: Agenda
Agenda Overview and key themes Tim Salt Managing Director & CEO Group financial results Patrick Gibson Chief Financial Officer Segment results Patrick Gibson Summary and outlook Tim Salt Page 4
Slide 6: Overview and key themes
Overview and key themes Page 5
Slide 7: GWA delivers solid result while continuing to build strong platform for future growth
GWA delivers solid result while continuing to build strong platform for future growth Solid full year result – continued growth in top and bottom line Continued focus on top line growth and cost control to support margin management delivers earnings and market share growth Strengthening market
Slide 8: Continued improvement across key metrics
Continued improvement across key metrics Continuing Operations¹ Revenue ROFE 2% 0.9pp $446.3m 20.2% EBITDA Operating Cashflow 2% $86.2m $88.8m (3%) EBIT EPS 3% 7% $80.6m 20.3 cents Dividend NPAT 3% Full-year ordinary 16.5c² 10% $53.7m (7.5c interim, 9c final) ¹ Continuing operations excludes Glidero
Slide 9: Result consistent with market guidance
Result consistent with market guidance What we said Results for FY17 1 2H EBIT at or slightly ahead of first half FY17 EBIT in 2nd half up 5% on first half 2 $5m reduction in working capital in 2H Working capital reduced $9 million in 2H – contributes to 24% increase in operating cashflow in
Slide 10: GWA continuing to grow revenue ahead of the market
GWA continuing to grow revenue ahead of the market Focus on building profitable market share in core segments drives top line growth ahead of the market 1 2 GWA end market exposure Market activity FY17 Renovation & Overall market remains relatively flat Replacement Change (0.2)% (MAT) Residential Re
Slide 11: Group financial results
Group financial results Page 10
Slide 12: Increase in net profit drives uplift in EPS
Increase in net profit drives uplift in EPS A$m FY16 FY17 Net profit up 3% on prior year Continuing Operations EBITDA up 2% reflects lower Depreciation & Amortisation Reported EBITDA 84.3 86.2 EBIT up 3% in line with guidance, reflects market share EBIT 78.3 80.6 improvements in core segments
Slide 13: EBIT growth from share gains, focus on mix and margin management
EBIT growth from share gains, focus on mix and margin management Group EBIT up 3% on prior year Volume/Mix - Continued focus on higher margin products in B&K core segments (R&R, Commercial, Detached housing) drives improvement in product mix and increase in market share. Multi-Res is not a core
Slide 14: Continued strong cashflow generation
Continued strong cashflow generation Cash flow from Operations Continue to generate strong cashflow across the business FY16 FY17 A$M EBITDA 84.3 86.2 Working capital improvement in 2H from inventory management Net movement in Working 6.3 2.4 and integrated business planning initiative Capital O
Slide 15: Strong financial position supports growth and re-investment through the cycle
Strong financial position supports growth and re-investment through the cycle 30 June 30 June 30 June GWA remains in strong financial position - credit metrics Metric 2015 2016 2017 continue to be consistent with investment grade Net Debt 94.8 88.4 79.8 Leverage Ratio Net debt $80m – reflects st
Slide 16: Segment results
Segment results S GWA Group Limited
Slide 17: Bathrooms & Kitchens – continued growth ahead of market and margin resilience
Bathrooms & Kitchens – continued growth ahead of market and margin resilience Continuing Operations A$m FY16 FY17 % Change Revenue up 2.5% - ahead of market growth of 1.3% Revenue 342.0 350.4 2.5% continued share growth in core segments – R&R, EBITDA 86.6 89.4 3.2% commercial, detached houses EB
Slide 18: Door & Access Systems – addressing short term performance and strengthening for medium term
Door & Access Systems – addressing short term performance and strengthening for medium term Continuing Operations A$m FY16 FY17 % Change Revenue down 2% Revenue 97.7 95.9 -1.8% growth in eastern states VIC (+2%), QLD (+2%) more than EBITDA 8.7 7.7 -11.5% offset by weak WA market (-27%) EBIT 7.3
Slide 19: Summary and outlook
Summary and outlook Page 18
Slide 20: Continued progress on strategy
Continued progress on strategy Strategic priority Progress against priorities Growing share consistently in core segments Leverage and build on core assets & brands to Strong new product and breakthrough innovation pipeline in FY18 drive revenue and market share growth Consumer engagement – co
Slide 21: FY18 outlook
FY18 outlook Key area FY18 commentary Renovations & Replacement segment expected to remain relatively stable Market Activity Expect slow-down in construction markets however, lag between approvals and completions supports continued demand. Multi-Residential not a core focus segment Commercial
Slide 22: Appendix
Appendix Page 21
Slide 23: Renovation & Replacement segment remains stable
Renovation & Replacement segment remains stable Renovation Activity (A$bn) Sources: ABS, ANZ Research Page 22
Slide 24: Reconciliation of normalised and reported profit
Reconciliation of normalised and reported profit FY16 FY17 A$m Continuing Discont'd Group Continuing Discont'd Group Operations Operations Total Operations Operations Total Normalised EBITDA 84.3 (0.5) 83.8 86.2 0.0 86.2 EBIT 78.3 (0.6) 77.7 80.6 0.0 80.6 NPAT 51.9 (0.2) 51.7 53.7 0.0 53.7 Significa
Slide 25: Proforma 5 year summary
Proforma 5 year summary A$m FY13 FY14 FY15 FY16 FY17 Revenue Bathrooms & Kitchens 286.3 306.6 330.0 342.0 350.4 Door & Access Systems 89.8 92.8 96.2 97.7 95.9 Total Cont'd Ops 376.1 399.4 426.2 439.7 446.3 Discontinued Ops ** 189.2 178.6 121.6 4.8 0.0 Group Total 565.3 578.0 547.8 444.5 446.3 Normal