Gwa Group Limited · ASX:GWA
Gwa — H1 FY2015 Earnings Presentation
18 slides from Gwa's earnings presentation, Feb 17, 2015
Slide 1: ASX cover letter: Financial Results Presentation for Half Year Ended 31 December 2014
GWA Group Limited ‘ABN 15 055 964 380 t 6173109 6000 f 61 7 3852 2201 ‘www.gwagroup.com.au S Level 2, HO (South Tower) 20 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 17 February 2015 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sirs Financ
Slide 2: GWA Group Limited
GWA Group Limited GS
Slide 3: Half Year Presentation 17 February 2015
Half Year Presentation 17 February 2015 Presented by: Peter Crowley Title: Managing Director
Slide 4: Major Successes & Challenges for the Half Year
Major Successes & Challenges for the Half Year √ Bathrooms & Kitchens Net Sales +6% compared to prior period last year √ Door & Access Net Sales +4% compared to prior period last year √ Successful divestment of non core businesses √ Restructure of Bathrooms & Kitchens manufacturing facilities √ Stro
Slide 5: Improving Conditions in the First Half offset by lower production recoveries
Improving Conditions in the First Half offset by lower Wetherill Park production recoveries, slower re-stocking in Gainsborough and Gliderol performance Net Sales 5% better than prior year Trading EBIT 5% better than prior year Bathrooms & Kitchens Net Sales 6% better than prior year Door & Access N
Slide 6: Results – Half Year to 31 December 2014
Results – Half Year to 31 December 2014 $000’s Half Year Half Year % Continuing Dec 14 Dec 13 Change Businesses Sales Revenue 235,999 224,223 5.3% Trading EBIT 33,058 31,370 5.4% EBIT Margin 14.0% 14.0% Trading Profit after Tax 19,192 17,556 9.3%
Slide 7: Results – Half Year to 31 December 2014 (Net Profit)
Results – Half Year to 31 December 2014 $000’s Half Year Half Year % Continuing Businesses Dec 14 Dec 13 Change Trading Profit after Tax 19,192 17,556 9.3% Discontinued Operations Trading Profit after Tax 4,797 2,777 Restructuring expenses and significant items after Tax (36,757) (1,596) Impairment
Slide 8: Major Variations in Trading EBIT - Continuing Operations
Major Variations in Trading EBIT - Continuing Operations Price offsetting cost $45.0 increases and FX $9.9 -$10.0 impact $40.0 Cost increases $35.0 $31.4 $1.2 $0.5 $0.1 $33.1 includes impact of $30.0 lower production recoveries at Wetherill Park, FX $25.0 $m $20.0 and general cost $15.0 increases $1
Slide 9: Bathrooms & Kitchens Net Sales Growth in line with market
Bathrooms & Kitchens Net Sales Growth in line with market A’000 Half Year Half Year % Change Dec 14 Dec 13 Sales 162,990 154,399 5.6% Price increases offsetting impact of FX Trading Mix shift in total dwellings EBIT 40,254 37,534 7.2% with greater number of EBIT apartments driving lower $ margin 24.
Slide 10: Slower Gainsborough re-stocking and Gliderol performance
Slower Gainsborough re-stocking and Gliderol performance A$000 Half Year Half Year % Change Dec 14 Dec 13 Slower than expected re- Sales 73,277 70,171 4.4% stocking of Gainsborough products Trading EBIT 565 1,957 (71.1)% Revenue growth in Gliderol 8% but business still losing EBIT margin 0.8% 2.8% m
Slide 11: Cash Flow Driven by Improved Working Capital
Cash Flow Driven by Improved Working Capital $000’s Half Year Half Year Dec 14 Dec 13 Operating Cash Flow from Continuing Operations 40,656 19,521 DiscontinuedOperations 8,624 6,373 Restructuring Cash Flows (8,904) (2,009) Cash Flow Associated with One Time Significant Items (4,381) (215) Total Oper
Slide 12: Financial Metrics Remain Strong
Financial Metrics Remain Strong Half Year Half Year Dec 14 Dec 13 Net Debt ($M) 99.4 162.5 Gearing Ratio (Net Debt / Net Debt Plus Equity) 20.6% 28.9% Leverage Ratio (Net Debt / EBITDA) 1.19 1.99 Debt Maturity Profile October 2017 225.0
Slide 13: No Interim Dividend as Insufficient Retained Earnings
No Interim Dividend as Insufficient Retained Earnings as a Result of the Restructuring $000’s Half Year Half Year Dec 14 Dec 13 Half Year trading profit after Tax 23,989 20,333 Trading Earnings per share 7.7 cents 6.6 cents Impairment & Restructuring (36,757) (18,596) Net profit after Tax (12,768) 1
Slide 14: Completions Improving and Will Continue Through 2015 and 16
Completions Improving and Will Continue Through 2015 and 2016 Australia - New Dwelling Activity 12 Month Moving Annual 210,000 200,000 Moving Annual Numbers 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 Ju 03 Ju 04 Ju 05 Ju 06 Ju 07 Ju 08 Ju 09 Ju 10 Ju 11 Ju 12 Ju 13 4 D 03 D 04 D
Slide 15: Priorities for the Second Half
Priorities for the Second Half Continue to focus on the Bathrooms & Kitchens target market segments and strategic initiatives Continue to rebuild market share and restore profitability in Door & Access focusing on key market segments Continue to align the organisation ensuring maximum leverage and e
Slide 16: 2014/15 Full Year Outlook
2014/15 Full Year Outlook Second half performance is expected to be strong driven by increasing completions and renovation activity, price increases and improvements in Door & Access Systems performance 2014/15 Continued Operations Trading EBIT (before restructuring and significant items) is expecte
Slide 17: Non-IFRS Financial Measures
Non-IFRS Financial Measures Given the significance of the restructuring expenses and significant items 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- I
Slide 18: GWA Group Limited
GWA Group Limited GS