Gwa Group Limited · ASX:GWA
Gwa — H1 FY2013 Earnings Presentation
23 slides from Gwa's earnings presentation, Feb 20, 2013
Slide 1: ASX cover letter: Half Year Results Presentation
GWA Group Limited ABN 15 055 964 380, t 617 3109 6000 f 6173852 2201 www.gwagroup.com.au S Level 2, HO (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 Brisbane QLD 4001 20 February 2013 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sirs Financi
Slide 2: For personal use only
For personal use only
Slide 3: Half Year Presentation
Half Year Presentation 20 February 2013 Presented by: Peter Crowley Title: Managing Director
Slide 4: Major Successes & Challenges for the Half Year
GS GWA Group Limited Major Successes & Challenges for the Half Year 4 PR Strategic repositioning of the business implemented with 12.5% less employees (223 FTE’s) at December 2012 compared to June 2012 (excluding API) Plant closure and rationalisation savings tracking as expected Acquisition of API
Slide 5: Result Highlights - H/Y to December 2012
SG GWA Group Limited Result Highlights — H/Y to 31 December 2012 Underlying sales on a like for like basis down 10%. Overall revenue down 8% due to inclusion of API Trading EBIT down 23% QTR 2 sales down 7% on a like for like basis. Overall revenue down 3% due to inclusion of API QTR 2 Trading EBIT
Slide 6: Weak Dwelling Activity in First Half
| GS om Group Limited Weak Dwelling Activity in First Half New Dwelling Activity 12 Month Moving Annual 190,000 180,000 170,000 160,000 150,000 140,000 Moving Annual Numbers 130,000 120,000 Fa o PF Fe FF yi yg iF yo yo vX o® gs Source: BIS Shrapnel —e— Approvals —z— Commencements —2— Completions
Slide 7: Results - H/Y to December 2012
GWA Group Limited S Results - H/Y to 31 December 2012 Half Year Half Year $000’s SLA2ZA2 sii2gad Sales Revenue 289,873 314,995 Trading EBIT 34,579 44,886 EBIT Margin 11.9% 14.2% Trading Profit after Tax 20,899 27,393 Change -8.0% =29.0% S23 76
Slide 8: Results - H/Y to December 2012
GWA Group Limited GS Results - H/Y to 31 December 2012 Half Year $000’s 31.12.12 Trading Profit after Tax 20,899 Restructuring Expenses after tax -5,168 Net Profit (continuing operations) 15,731 Half Year Sil lL 27,393 7,457 G7 986
Slide 9: Major Variations in Trading EBIT
S GWA Group Limited Major Variations in Trading EBIT 50 44.9 2011 22 0 tt Ea [] [] woe HE Sales volumes adversely impacted by absence of Government stimulus, low building activity and poor sales of environmental water heaters Price has come under pressure in Bathrooms & Kitchens Cost increases more
Slide 10: Segment Results - H/Y to December 2012
GWA Group Limited SG Segment Results- H/Y to 31 December 2012 $000’s Half Year Half Year % Change Trading EBIT Siei2 12 3st Bathrooms & Kitchens 30,707 35,940 -14.6% Heating & Cooling 4,588 7 OD, -36.2% Door & Access Systems 6,481 8,403 -22.9% Corporate costs (7,197) (6,649) -8.2% Operations before
Slide 11: Bathrooms & Kitchens: Weak Market Conditions Impacting Demand
GS GWA Bathrooms & Kitchens Weak Market Conditions Impacting Demand AOD ise POCA Ps DEC LL. ue Change, Sal 147,233 154,512 -4.7% ore aa = Weak market conditions Trading impacting volume and price EBIT 30,707 35,940 -14.6% = Sales boosted last year by EBIT BER, public housing and margin 20.9% 23.3% o
Slide 12: Heating & Cooling: Cessation of Solar Rebates & Weak Market
GWA Heating & Cooling S Cessation of Solar Rebates & Weak Market Impacting Earnings Sales 72,247 86,386 -16.4% Trading EBIT 4,588 7,192 -36.2% EBIT margin 6.4% 8.3% -1.9% pts ROFE 9.6% 15.9% Sales adversely impacted by rebate driven environmental product sales Moss Vale cost savings on track Busines
Slide 13: Door & Access Systems: Impact of Lower Residential Building Activity
S GWA Door & Access Systems Impact of Lower Residential Building Activity Sales Trading EBIT EBIT margin ROFE 70,389 74,029 6,481 8,403 9.2% 11.4% 13.0% 18.9% -22.9% GLIDEROL GARAGE DOORS @) el Austral Lock” [A] Hillaldam SLIDING DOOR SYSTEMS Underlying sales down 12% Gainsborough business performin
Slide 14: Cash Flow Lower Driven By Weak Market Conditions and Restructuring
GWA Group Limited G Cash Flow Lower Driven By Weak Market Conditions and Restructuring $000’s Operating cashflow from trading activities Restructure cash flows Total operating cash flow (before interest and tax) Capital expenditure (net) 2012 2011 40,679 57,255 (8,384) (6,860) 32,295 50,395 (9,832)
Slide 15: Financial Structure is Stable With Facilities Available to Fund Growth
GWA Group Limited GS Financial Structure is Stable With Facilities Available to Fund Growth « Total facilities $300 million with maturity in 2014 - 2016 =» Net debt of $193 million » Investment grade metrics allow for targeted bolt on acquisitions from existing facilities
Slide 16: High Dividend Payout Ratio Maintained
i GWA Group Limited High Dividend Payout Ratio Maintained $000’s 2012 2011 Half Year trading profit after tax for continuing operations 20,899 27595 Trading earnings per share 6.9 cents 9.1 cents Interim Dividend 6.0 cents 9.5 cents
Slide 17: New Dwelling Activity May Have Bottomed But Improvement Could be Slow
GWA roup Limited Ss New Dwelling Activity May Have Bottomed But Improvement Could be Slow New Dwelling Activity 12 Month Moving Annual —=— Commencements Source: BIS Shrapnel —s— Completions 180,000 2 170,000 nat Ny o E 160,000 a ane 2 | 3 2 150,000 + Ss <q 2 140,000 + 3 = 130,000 + 120,000 +--+ oo a
Slide 18: Growth Options Continue To Be Assessed
GWA Group Limited GS Growth Options Continue To Be Assessed » Recent investigations into potential acquisitions have not uncovered opportunities which meet our financial and strategic criteria » Small acquisitions that leverage scale are possible in the short to medium term
Slide 19: Priorities for Second Half Year
GWA Group Limited GS Priorities for Second Half Year » Bed down the new organisational changes following the restructure announced in December = Commence the execution of the strategic plans which underpinned the restructure « Finalise the range rationalisation in Bathrooms & Kitchens = Commence the
Slide 20: Our Focus for 2012/13 is to Build a Stronger Business
GWA Group Limited GS Our Focus for 2012/13 is to Build a Stronger Business so we can Capture the Upside when Building Activity Improves «= Re-align the business with greater focus on customer segments » Strengthen the balance sheet through sale of non-core assets = New product offers eg G+ electroni
Slide 21: 2012/13 Full Year Outlook
GWA Group Limited GS 2012/13 Full Year Outlook » Second half sales expected to be flat to the first half » Trading EBIT expected to improve 1% - 3% on the first half due to API and positive impact of restructuring « Further business improvement opportunities are being assessed
Slide 22: Non-IFRS Financial Measures
| | Group Limited Non-IFRS Financial Measures Given the significance of the restructuring expenses 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 the business. The above non-IFRS f
Slide 23: For personal use only
For personal use only