Gwa Group Limited · ASX:GWA
Gwa — Macquarie Australia Conference 2017
25 slides from Gwa's conference presentation, May 3, 2017
Slide 1: ASX cover letter: Macquarie Australia Conference Presentation
G GWA Group Limited ABN 18 055 964 380 t 6173109 6066 £ 64 7 3892 2201 WWW. Gua grOUp.COM aul 7 Eagleview Place Fagle Farm O£D 4909 GPG Box 1414 3 May 2017 Brisbane OLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Macquarie Australia Conference Presentation
Slide 2: GWA Presentation Macquarie Australia Conference
GWA Presentation Macquarie Australia Conference 3 May 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: 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 7: 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 8: 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 9: 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 10: 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 11: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 10
Slide 12: 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 11
Slide 13: Corporate Priorities
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 14: Strategic approach by market segment
Strategic approach by market segment Strategic About GWA Group strategy progress Summary D&A approach by market segment B&K approach by market segment Opportunity to grow in Grow effectively in Commercial /Multi-Res Residential Residential 22% Commercial 23% Continue to grow in Commercial Multi-Res
Slide 15: 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 Increased by 1% (MAT) Residential Strong pipeline remains from lag detached h
Slide 16: 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 15
Slide 17: …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 16
Slide 18: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 17
Slide 19: 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 18
Slide 20: 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 19
Slide 21: 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 22: Caroma Cleanflush video
Caroma Cleanflush video Strategic About GWA Group strategy progress Summary gwagroup.com.au 21
Slide 23: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary and Outlook gwagroup.com.au 22
Slide 24: 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 25: GWA Presentation Macquarie Australia Conference
GWA Presentation Macquarie Australia Conference 3 May 2017 gwagroup.com.au