Gwa Group Limited · ASX:GWA
Gwa — FY2013 Earnings Presentation
24 slides from Gwa's earnings presentation, Aug 21, 2013
Slide 1: ASX cover letter: Annual Results Presentation
GWA Group Limited ABN 15 055 964 380 t 617 3109 6000 f 61 7 3852 2201 \ww.gwagroup.com.aut Level 2, HQ (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 21 August 2013 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual Res
Slide 2: For personal use only
GWA GS Group Limited 74 iB. meal | mn ih. Wei be Be aR | | | | ie \ | | | | | | = t | I] | / ala EE | t fe) ii “lb 4
Slide 3: Annual Results Presentation
For personal use only Annual Results Presentation 21 August 2013 Presented by: Peter Crowley Title: Managing Director
Slide 4: Major Successes & Challenges for the Year
For personal use only Major Successes & Challenges for the Year √ Strategic re-positioning of the business completed - Strategy built around Focus, Reach & Leverage - 14% reduction in employees √ Sanitaryware improving market share √ Brivis gaining market share √ Strong cash flow from operational im
Slide 5: Difficult Trading Conditions Mitigated by the Strategic Re-positioning
For personal use only Difficult Trading Conditions Mitigated by the Strategic Re-positioning Underlying sales on a like for like basis down 9% (6% down including API) Trading EBIT of $66 million down 13% on last year Net Margin % relatively flat to last year with Selling, General & Administration co
Slide 6: Building Activity Showing Signs of Life
For personal use only Building Activity Showing Signs of Life New Dwelling Activity 12 Month Moving Annual 190,000 180,000 Moving Annual Numbers 170,000 160,000 150,000 140,000 130,000 120,000 Ju 3 Ju 4 Ju 5 Ju 6 Ju 7 Ju 8 Ju 9 Ju 0 Ju 1 Ju 2 D 3 04 D 5 D 6 D 7 D 8 09 D 0 D 1 D 2 13 -0 -0 -0 -0 -0 -
Slide 7: Results – Year to June 2013
Results –Year to 30 June 2013 For personal use only Full Year Full Year $Million 2013 2012 Change Sales Revenue 565.4 602.1 -6% Trading EBIT 65.8 75.4 -13% EBIT Margin 11.6% 12.5% Trading Profit after Tax for Continuing Businesses 38.6 45.6 -15% Net Profit after Tax Incl Restructuring and Disc. Busi
Slide 8: Lower Trading EBIT is Driven by Sales Decline Mitigated by Cost Savings
Lower Trading EBIT is Driven by Sales Decline For personal use only Mitigated by Cost Savings 80 75.4 -13.7 Difficult trading conditions impacting volumes across all 70 24.8 -1.7 65.8 businesses -6.4 60 Loss of market share in -12.7 Garage Doors and Hot Water 50 Pricing pressure in the Hot Water cat
Slide 9: Strategic Re-positioning Improves Productivity with 14% Decline in Workforce
For personal use only Strategic Re-positioning Improves Productivity with 14% Decline in Workforce Total Employees June 2012 1,788 Restructuring & Operational (256) Total Employees June 2013 1,532 (Excl API with 148 Employees)
Slide 10: Bathrooms & Kitchens
Bathrooms & Kitchens For personal use only Tough Trading Conditions $M June 13 June 12 % Change Sales 367.5 404.7 -9% First quarter carry over of the BER and Government Trading rebates EBIT 64.5 67.8 -5% Aggressive market pricing EBIT% 17.6% 16.7% impacted Hot Water sales Traditional Bathrooms & ROF
Slide 11: Heating & Cooling
Heating & Cooling For personal use only Weak Victorian Market and Aggressive Market Pricing $M June 13 June 12 % Change Sales 58.8 62.5 -6% Share regained in core Trading categories EBIT -19% Strong investment in new 5.2 6.5 product development EBIT% 8.9% 10.4% through the year Strong winter season
Slide 12: Door & Access Systems
Door & Access Systems For personal use only Lower Residential Building Activity and Gliderol Issues $M June 13 June 12 % Change Sales 140.9 138.6 2% Sales increased due to Trading inclusion of API EBIT 10.9 14.1 -23% Underlying sales down by 11% due to market EBIT% 7.7% 10.1% conditions and Gliderol
Slide 13: Strong Cash Flow Reflects Management's Operational Focus
For personal use only Strong Cash Flow Reflects Management’s Operational Focus $Million 2013 2012 Cash Generated from Trading Operations 97.2 111.0 Cash Generated from Discontinued Operations 0.0 -2.0 Restructuring Cash Flows -13.6 -10.1 Cash Generated from Operations 83.6 98.9 Property / asset sale
Slide 14: Financial Metrics Remain Strong
Financial Metrics Remain Strong For personal use only 2013 2012 Net Debt ($M) 162.3 174.5 Gearing Ratio (Net Debt / Net Debt Plus Equity) 28% 29% Leverage Ratio (Net Debt / EBITDA) 1.92 1.87 Debt Maturity Profile July 2016 200.0 July 2018 75.0
Slide 15: Fully Franked Dividend at 95% of Trading Profit After Tax
Fully Franked Dividend at 95% of Trading For personal use only Profit After Tax $Million 2013 2012 Trading profit after tax 38.6 45.6 Trading earnings per share 12.7¢ 15.1¢ Reported earnings per share 10.6¢ 13.2¢ Ordinary Dividend Interim 6.0¢ 9.5¢ Final 6.0¢ 8.5¢ Total (fully franked) 12.0¢ 18.0¢
Slide 16: 2012/13 has Positioned Businesses to Deliver Growth as Conditions Improve
For personal use only 2012/13 has Positioned Businesses to Deliver Growth as Conditions Improve The Business units have commenced the implementation of key strategic initiatives across target market segments Work is underway to deliver a more efficient and customer responsive supply chain The Glider
Slide 17: Strategic Re-positioning Will Deliver a Sustainable Competitive Advantage
For personal use only Strategic Re-positioning Will Deliver a Sustainable Competitive Advantage The strategic work we completed in late 2012 with the help of LEK Consulting realigned our thinking and led to the restructuring of the key business units In turn the overarching strategy was fine tuned a
Slide 18: Strategic Re-positioning: Focus
For personal use only Strategic Re-positioning Will Deliver a Sustainable Competitive Advantage Our FOCUS is to grow in our core Australian building fixtures and fittings markets In particular we will FOCUS on growth in targeted market segments where GWA can sustain long term competitive advantage T
Slide 19: Strategic Re-positioning: Reach
For personal use only Strategic Re-positioning Will Deliver a Sustainable Competitive Advantage GWA will REACH the key decision makers across our target market segments. In doing so we will seek to influence their purchasing decisions: – Through a clear understanding of their needs – Through a value
Slide 20: Strategic Re-positioning: Leverage
For personal use only Strategic Re-positioning Will Deliver a Sustainable Competitive Advantage GWA will maximize competitive advantage through LEVERAGE to ensure the Group operates the most efficient structures to support our target market segments and aligned channel partners. GWA will LEVERAGE th
Slide 21: GWA's Focus is to Grow the Core Business and Improve Efficiency
For personal use only GWA’s Focus is to Grow the Core Business and Improve Efficiency Priority is growing the core businesses and improving efficiency Inorganic options that fit within the strategic roadmap will always be considered Financial criteria for growth will be maintained
Slide 22: 2013/14 Outlook
For personal use only 2013/14 Outlook Dwelling approvals are improving with signs of a slow but positive recovery through the year with completions expected to improve in the second half of the year Currency devaluation will impact cost of sales but price increases from September onwards have alread
Slide 23: Non-IFRS Financial Measures
For personal use only Non-IFRS Financial Measures Given the significance of the restructuring expenses and discontinued operations the Directors believe the presentation of non-IFRS financial measures is useful for the users of this document as they reflect the underlying financial performance of th
Slide 24: For personal use only
GWA GS Group Limited 74 iB. meal | mn ih. Wei be Be aR | | | | ie \ | | | | | | = t | I] | / ala EE | t fe) ii “lb 4