Gwa Group Limited · ASX:GWA
Gwa — H1 FY2022 Earnings Presentation
34 slides from Gwa's earnings presentation, Feb 15, 2022
Slide 1: Financial Results Presentation for the Half Year Ended 31 December 2021
15 February 2022 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Financial Results Presentation for the Half Year Ended 31 December 2021 We enclose the following document for immediate release to the market: • Half Year Results Presentation On 15 February 2022 at 10
Slide 2: Results Presentation
] Results Presentation Half Year ended 31 December 2021 15 February 2022 1
Slide 3: Presenters
Presenters Urs Meyerhans Calin Scott Managing Director and CEO Chief Financial Officer 2
Slide 4: Agenda
Agenda ‒ Overview ‒ Group Financial Results ‒ Business Performance ‒ Strategic Update ‒ Summary & FY22 Outlook ‒ Q&A ‒ Appendix 3
Slide 5: Overview
01 | Overview IG GWA a Group Limited | METHVEN CLARK dorf
Slide 6: Solid 1H performance – proactively managing COVID conditions
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Solid 1H performance – proactively managing COVID conditions Improved financial performance through successfully addressing disruptions ‒ Revenue up 2%; Normalised EBIT up 11% Cashflow/balance sheet remain str
Slide 7: Improved safety performance
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Improved safety performance Total Injury Frequency Rate Reduction in in Total Injury Frequency Rate to 0.9 in 1HFY22. Ongoing tailored training to address manual handling issues 14 12 Proactive COVID safety
Slide 8: Group Financial results
02 | Group Financial results 1G GWA c Souptini | METHVEN caxx | dorf
Slide 9: Normalised EBIT up 11% with solid uplift in EBIT margin
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Normalised EBIT up 11% with solid uplift in EBIT margin A$m Normalised¹ 1H FY22 1H FY21 % Change Revenue 201.3 197.2 2.1% EBITDA 45.5 42.2 8.0% ‒ Group Revenue up 2% PcP EBIT 35.6 32.1 11.0% EBIT Margin % 17.7% 16
Slide 10: Operational discipline helps mitigate turbulent 1H markets
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Operational discipline helps mitigate turbulent 1H markets Normalised¹ EBIT Bridge (A$M) ‒ Volume/Mix: Reflects negative impact of COVID-19 on volumes primarily in the International Markets, partially 37.0 (0.8) o
Slide 11: Strong cash conversion enables 7.0 cents interim dividend
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Strong cash conversion enables 7.0 cents interim dividend Cash flow from Continuing Operations A$M 1H FY22 1H FY21 ‒ Cash Flow from Operations down 12% to $43.6m EBITDA 45.5 42.2 reflects planned inventory build t
Slide 12: Solid financial position maintained – credit metrics stable
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Solid financial position maintained – credit metrics stable 30 June 30 June 30 June 30 June 31 Dec ‒ Net debt $104.0m down 0.8% on prior year with Metrics1 2018 2019 2020 2021 2021 continued focus on cash manageme
Slide 13: Business Performance
03 | Business Performance 122|G GWA | MeTHVEN | cl an« | dorf
Slide 14: Group revenue improved by +2% vs. 1H FY21
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Group revenue improved by +2% vs. 1H FY21 Revenue by 1H (A$m) Revenue commentary $ Revenue & % of Group Australia 1HFY20 1HFY21 1HFY22 162.9 161.9 152.8 ‒ Sales grew by 6% on the prior period $161.9m ‒ Strong perf
Slide 15: Proactive mitigating of supply chain risks
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Proactive mitigating of supply chain risks Challenges Mitigation strategies Long term shipping contracts Container & shipping shortages Chartering own vessel Proactive planning with key suppliers Regional
Slide 16: 1H NPD launches to strengthen & extend our core propositions
1H NPD launches to strengthen & extend our core propositions With a focus on providing functional and stylish solutions, we launched new additions to our ranges. Our passion to deliver superior solutions for health & hygiene in the bathroom, saw us expand our hygiene technology, GermGard, to all Ren
Slide 17: Focussed centres of excellence
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Focussed centres of excellence GWA innovation centres are at the forefront of global water technology innovation, focusing on designs of world first flushing systems, patented shower experiences and water saving s
Slide 18: Strategic Update
05 | Strategic Update GWA Group Limited 17/6
Slide 19: Building revised strategy
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Building revised strategy Setting the Groundwork ‒ Customer profiling ‒ Understanding different purchasing journeys ‒ Brand portfolio review ‒ Clear brand value proposition to our customers ‒ Category reviews to s
Slide 20: Caroma products available to experience in your own home
Caroma products available to experience in your own home Step 2: Caroma Visualiser enables a digital window into planning your bathroom, with virtual “walk- through” experiences and ability to share with GWA’s online your friends and family. platforms offer virtual and augmented reality experiences,
Slide 21: A committed Management Team to deliver the strategy
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook A committed Management Team to deliver the strategy Urs Meyerhans MD & CEO Caroline Sunaryo Melissa Hayes Craig Norwell Calin Scott Richard Thornton Patricia Oliver Alex Larson Supply Chain/ Marketing Sales CFO Co
Slide 22: Summary and FY22 outlook
06 Summary and FY22 outlook 21
Slide 23: Solid 1H performance – proactively managing COVID conditions
Financial Business Strategic Summary & Overview results performance focus FY22 Outlook Solid 1H performance – proactively managing COVID conditions Improved financial performance and successfully addressing all disruptions Cashflow/balance sheet remain strong Continued momentum into 2H FY22
Slide 24: FY22 outlook
Financial Business Strategic Summary & FY22 outlook¹ Overview results performance focus FY22 Outlook Key focus FY22 commentary Key Markets ‒ R&R in Residential/Commercial activity expected to remain positive ‒ Expect continued momentum in residential detached completions Positive for GWA ‒ Commercia
Slide 25: Q&A
07/Q&A —) 24|G ou... L meraven | cco | dor
Slide 26: 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 27: Appendix
08 | Appendix 26|G GWA Souptini | METHVEN dorf
Slide 28: FY22 Key Assumptions
FY22 Key Assumptions1 Area FY22 Expectation Actual 1H Australian market BIS total building activity data2 is indicating market growth BIS total building activity data is indicating market growth backdrop of +1% in FY22 of +2% in FY22 Price increase 3% implemented in ANZ from 1 July 2021 and ~4% 3% i
Slide 29: 1H FY22 dividend increased on 1H FY21
1H FY22 dividend increased on 1H FY21 1.0 9.5 9.5 9.0 8.0 3.5 6.5 8.5 9.0 7.5 8.0 7.0 7.0 6.0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Special Final ordinary Interim ordinary 28
Slide 30: Increasing presence in Commercial segment
Increasing presence in Commercial segment Segment1 Category Valves, 2% Resi, 16% Basins, Sinks, Tubs & Baths, 18% Multi-Resi, 5% Sanitaryware, 41% R&R, 60% Commercial, 19% Taps & Showers, 39% Geography Brand United Kingdom, Asia, 1% Other New 7% 17% Zealand, 12% Dorf 3% Methven 11% Caroma 60% Clark
Slide 31: Australian Market Context – residential completions expected to strengthen in FY22
Australian Market Context – residential completions expected to strengthen in FY22, multi-residential to recover in FY23 Residential¹ Multi - Residential² 160,000 120,000 140,000 100,000 Quantity Completed Annually Quantity Completed Annually 120,000 80,000 100,000 80,000 60,000 60,000 40,000 40,000
Slide 32: 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 8,000 $m Work Done 40,000 30,000 6,000 20,000 4,000 10,000 2,000 0 0 Actual Forecast Actual Forecast
Slide 33: Residential completions expected to rise by 24,000 or 23% during FY22
Residential completions expected to rise by 24,000 or 23% during FY22 (Completions’ lag vs. approvals ~15 months) 160,000 140,000 120,000 Quantity Completed Annually 100,000 80,000 12 mths 15 mths 60,000 12 mths 40,000 20,000 0 Approvals - Actual Completions - Actual 32 Source: BIS Oxford Economics
Slide 34: Results Presentation
Results Presentation Half Year ended 31 December 2021 15 February 2022 33