Gwa Group Limited · ASX:GWA
Gwa — Investor Day (September 2022)
52 slides from Gwa's investor day presentation, Sep 21, 2022
Slide 1: GWA Investor Market Briefing Presentation (ASX release)
21 September 2022 ASX Release GWA Investor Market Briefing Presentation GWA Group Limited (GWA) is hosting an Investor Market Briefing on Wednesday, 21 September 2022, at the company’s Innovation and Distribution Centre (IDC), Prestons, Western Sydney, commencing at 10.00 am (AEST). Attached is a co
Slide 2: GWA Investor Market Briefing
GWA INVESTOR MARKET BRIEFING 21 SEPTEMBER 2022 INVESTOR MARKET BRIEFING
Slide 3: Agenda
Agenda 4 Overview and safety focus Urs Meyerhans 11 Strategic Plan 15 GWA strategy by pillar 16 Win the plumber Craig Norwell 20 Innovate through design and partnerships Caroline Sunaryo 25 Grow after market offerings Craig Norwell 29 Our foundations 30 Customer experience Melissa Hayes 33 Digital A
Slide 4: Leadership
Leadership URS MEYERHANS CALIN SCOTT CRAIG NORWELL ERNIE LAGIS MANAGING DIRECTOR & CEO GROUP CHIEF FINANCIAL OFFICER GM SALES COMPANY SECRETARY CAROLINE SUNARYO ALEX LARSON MELISSA HAYES PATRICIA OLIVER EXECUTIVE GM SUPPLY CHAIN & INNOVATION GM TECHNOLOGY & TRANSFORMA- GM MARKETING GM PEOPLE & PERFO
Slide 5: Introduction to GWA
3 to GWA Introduction INVESTOR MARKET BRIEFING
Slide 6: Overview and safety focus
Overview and safety focus URS MEYERHANS INVESTOR MARKET BRIEFING 4
Slide 7: GWA's recent journey
GWA’s recent journey Exit of local $118m strategic sanitaryware acquisition of manufacturing Methven and source from overseas suppliers Caroma Flagship Sale of Door & Property stores open in Access Systems consolidation into Sale of China Sale of Dux Hot Water & Sale of Gliderol Adelaide and busines
Slide 8: Ongoing commitment to workplace health and safety
Ongoing commitment to workplace health and safety 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Safety is a core value at GWA FY15 + Safety a core focus: “we care for each other” is a cultural pillar Total Injury Frequency Rate FY16 + Comprehensive COVID safe FY17 program business wide + On site mental health FY18
Slide 9: Delivering water solutions in the built environment
Delivering water solutions in the built environment Leading water solutions provider in buildings Market leading reputation + Leading developer + Focus on + Addressable market + Owner of the + Pioneering + Strong reputation and supplier of sanitaryware, opportunity AUS market’s leading water saving
Slide 10: Revenue profile
Revenue profile AUSTRALIAN MARKET BY SEGMENT – NSV REVENUE BY SEGMENT REVENUE ~$1.4BN - $1.6BN FY221 BY GEOGRAPHY1 RESI $0.2BN RESI 14% 81% AUSTRALIA MULTI-RESI $0.1BN MULTI-RESI 4% COMMERCIAL $0.15BN COMMERCIAL 11% NEW ZEALAND R&R R&R 21% $0.9BN - $1.1BN 61% 8% INTERNATIONAL INVESTOR MARKET BRIEFIN
Slide 11: Australian residential completions
9 Quantity Completed Annually 20,000 40,000 60,000 80,000 100, 000 120, 000 140, 000 160, 000 0 FY - 20 FY 00 -2 0 FY 01 • Actual -2 0 • Forecast FY 02 -2 0 FY 03 -2 0 FY 04 -2 RESIDENTIAL¹ 0 FY 05 -2 0 FY 06 -2 0 FY 07 -2 0 FY 08 -2 0 FY 09 -2 0 Actual FY 10 -2 0 FY 11 -2 0 FY 12 SOURCE BIS OXFORD
Slide 12: Commercial activity
10 $m Work Done FY - 10,000 20,000 30,000 40,000 50,000 60,000 0 20 FY 01 -2 0 FY 02 -2 0 • Actual FY 03 -2 0 • Forecast FY 04 -2 0 FY 05 -2 0 FY 06 -2 COMMERCIAL¹ 0 FY 07 -2 0 FY 08 -2 0 FY 09 -2 0 FY 10 -2 0 Actual FY 11 -2 0 FY 12 -2 0 FY 13 -2 0 SOURCE BIS OXFORD ECONOMICS FY 14 -2 0 Forecast FY
Slide 13: Strategic Plan
Strategic Plan URS MEYERHANS INVESTOR MARKET BRIEFING 11
Slide 14: Strategy
Strategy Making everyday water experiences extraordinary – today, and for tomorrow on an page STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER- FOCUS ON STR
Slide 15: Overarching objective of the strategy
Overarching objective of the strategy is to increase the Customer pull MERCHANTS PURCHASE BUILDER PLUMBER DECISION INVESTOR MARKET BRIEFING CONSUMER COMMERCIAL PLUMBER ADVICE ARCHITECT PLUMBER 13 DESIGNER DEVELOPER
Slide 16: Leverage our strengths to grow the future
Leverage our strengths to grow the future Implementing change across … to deliver on our desired future state GWA to enable consistent and sustainable profitable growth + Strengthen our relationships with + Above market growth in Revenue and Plumbers and end Customers to drive Profit in our core seg
Slide 17: GWA Strategy by Pillar: Win the Plumber
GWA Strategy by Pillar WIN THE PLUMBER CRAIG NORWELL INVESTOR MARKET BRIEFING 15
Slide 18: Win the Plumber
Win the Plumber Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER- FOCUS ON STRATEG
Slide 19: Why win the Plumber?
Win the Plumber CONNECT, DEEPEN AND LEVERAGE PLUMBING INDUSTRY RELATIONSHIPS WHY WIN THE PLUMBER? + Plumbers are the common denominator in our diverse customer base, as the installers for all plumbing products in ANZ + Plumbers buy or influence what’s used in the majority of plumbing projects in ANZ
Slide 20: How we win the Plumber
How we win DELIVERED BY JUNE 30 2022 KEY PERFORMANCE MEASURES the Plumber + Frontline Plumbing Specialists in place 1 25,000 plumbers engaged + Plumber training needs analysis 2 Plumbers trained* completed with MPA*/PICAC* and TAFE CONNECT, DEEPEN AND LEVERAGE 3 Technical services provided* + Double
Slide 21: Partnering to improve the industry
Partnering to improve the industry and develop the next generation Apprentices/year Plumber CE training/year GWA:MP Partnership Common purpose on the quality of plumbing / ESG INVESTOR MARKET BRIEFING 19
Slide 22: Innovate through Design and Partnerships
GWA Strategy by Pillar INNOVATE THROUGH DESIGN AND PARTNERSHIPS CAROLINE SUNARYO INVESTOR MARKET BRIEFING 20
Slide 23: Innovate through design & partnerships
Innovate through design & partnerships Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR
Slide 24: Innovate through design & partnerships: competitive advantage
Innovate through design & partnerships LEVERAGE IN-HOUSE CAPABILITY AND GLOBAL PARTNERSHIPS TO Our Competitive FAST-TRACK VALUE CREATION AND PORTFOLIO MODERNISATION Advantage Our technical expertise, Why innovate through design & partnerships? in-depth market knowledge, combined with supply + Produc
Slide 25: How we innovate through design & partnerships
How we innovate through DELIVERED BY JUNE 30 2022 KEY PERFORMANCE MEASURES design & partnerships + 5 Year NPD roadmap Measures FY25 Target established Vitality Index >10% NPD sales as a % of LEVERAGE IN-HOUSE CAPABILITY AND + Product & Supply overall GSV within 2 years Database available GLOBAL PART
Slide 26: Our innovation journey continues
Our innovation journey continues, with focus on sustainable and smart product solutions in traditional and emerging categories NEXT-GEN BATHROOM EASY SUSTAINABLE EMERGING TECHNOLOGY INSTALLATION PRODUCTS CATEGORIES Next-gen shower spray & Modular Sustainable Connected flushing technology system prod
Slide 27: Grow After Market Offerings
GWA Strategy by Pillar GROW AFTER MARKET OFFERINGS CRAIG NORWELL INVESTOR MARKET BRIEFING 25
Slide 28: Grow our after-market offerings
Grow our after- market offerings Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER-
Slide 29: Grow our after-market offering
Grow our after-market offering BUILD A COMPREHENSIVE AFTER-MARKET CAPABILITY Our Competitive Advantage Why grow our after-market offerings? ANZ scale in ‘new build’ + ANZ replacement and renovation is circa 3x size of new build share and customer coverage uniquely positions us to create and develop
Slide 30: Grow our after-market offering
Grow our after- market offering B2P BUILD A COMPREHENSIVE AFTER-MARKET CAPABILITY SERVICES Spare parts (B2P) + Direct to Plumber Service Model DELIVERY + Spares Data Management Services (Asset & Property Managers) + Asset Services agreements + OPEX asset services Delivery Models + Rapid Response INV
Slide 31: Our Foundations: Customer Experience
Our Foundations CUSTOMER EXPERIENCE MELISSA HAYES INVESTOR MARKET BRIEFING 29
Slide 32: Customer experience
Customer experience Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER- FOCUS ON STR
Slide 33: Customer experience
Customer experience INTEGRATED CUSTOMER EXPERIENCE WITH STRUCTURED BRANDS & CATEGORY PORTFOLIOS Why deliver great Customer experiences? Deliver a compelling market proposition + Be the brand of choice + Our Customers’ journey involves many critical, Create easy & engaging and oftentimes challenging,
Slide 34: How we deliver great Customer experiences
How we deliver great DELIVERED BY JUNE 30 2022 KEY PERFORMANCE MEASURES Customer experiences + Customer Journey Mapping Completed for all Customers + Brand Equity Increase, with measurement through bi-annual brand equity surveying + Brand and Customer Value INTEGRATED CUSTOMER EXPERIENCE Proposition
Slide 35: Our Foundations: Digital
Our Foundations DIGITAL ALEX LARSON INVESTOR MARKET BRIEFING 33
Slide 36: Digital
Digital Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER- FOCUS ON STRATEGIC DESIG
Slide 37: Digital
Digital INVESTMENT IN DIGITAL OPPORTUNITIES TO A stronger emphasis on digital channels is crucial, re-thinking the DELIVER A SUPERIOR way we connect with Customers. CUSTOMER EXPERIENCE Our Competitive Advantage Deep industry knowledge, relationships and partners, combined with speed to market, shapi
Slide 38: How Digital underpins our strategies
How Digital underpins DELIVERED BY JUNE 30 2022 KEY PERFORMANCE MEASURES our strategies + AR/VR/Planner Launch + Digital tools traffic growth + Virtual Experience + Plumber engagement and use Walkthrough Launch of Plumbers Hub INVESTMENT IN DIGITAL + ERP / CRM Transformation OPPORTUNITIES TO DELIVER
Slide 39: Caroma products available to experience in your own home
1 Caroma products Find the products on available to experience caroma.com.au in your own home GWA’s online platforms offer virtual and augmented reality experiences, allowing you to visualise your dream bathroom, kitchen and laundry. CAROMA VISUALISER enables a digital window into planning 2 your ba
Slide 40: Our Foundations: ESG
Our Foundations ESG ERNIE LAGIS INVESTOR MARKET BRIEFING 38
Slide 41: Environmental, Social, Governance
Environmental, Social, Governance Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER
Slide 42: Environmental, Social, Governance
Environmental, Social, Governance OUR ESG JOURNEY PRIORITIES CREATING SUSTAINABLE OUTCOMES THAT DRIVE VALUE AND FUEL GROWTH Have an effective ESG framework Why ESG? and governance structure Establish ESG as source of competitive advantage GWA’s approach to sustainability based around two objectives:
Slide 43: Environmental, Social, Governance
Environmental, Social, Governance DELIVERED BY JUNE 30 2022 + FY22 modern slavery risk CREATING SUSTAINABLE OUTCOMES mitigation actions THAT DRIVE VALUE AND FUEL GROWTH + Ongoing reductions in water usage, waste and carbon emissions + Percentage of females at the executive level Have an effective Pu
Slide 44: Our Foundations: Aligned Organisation
Our Foundations ALIGNED ORGANISATION PAT OLIVER INVESTOR MARKET BRIEFING 42
Slide 45: Aligned organisation
Aligned organisation Making everyday water experiences extraordinary – today, and for tomorrow STRATEGY To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries WIN THE PLUMBER INNOVATE THROUGH GROW OUR AFTER- FOCUS ON ST
Slide 46: Aligned organisation
A RE R S A B LE N Foundation: CRI T ICA L E s Aligned organisation U C T U R E e r o f r e s o g h r u el t c l e e v S T R b m the r i n u ir ght ting at THE RIGHT PEOPLE IN THE RIGHT ROLES, p e ra o FOCUSED ON THE RIGHT OUTCOMES E M S Y S T ed d S m l i n e Why an aligned organisation? e a d d str
Slide 47: How do we achieve an aligned organisation
How do we achieve an DELIVERED BY JUNE 30 2022 KEY PERFORMANCE MEASURES aligned organisation + Resource Plan In Place + Employee Value Proposition (EVP) that differentiates us in the + ANZ Akuna ERP and CRM transition market as an employer of choice to BAU complete THE RIGHT PEOPLE IN THE RIGHT ROLE
Slide 48: Financial Strength and Capacity for Growth
Financial Strength and Capacity for Growth CALIN SCOTT INVESTOR MARKET BRIEFING 46
Slide 49: Continued strong financial position
Continued strong GWA remains in a strong financial position financial position + provides enhanced financial flexibility for investment in both organic and strategic inorganic growth opportunities to fund growth + $180m multi-currency revolving facility initiatives renewed does not expire until Octo
Slide 50: Capital management
Capital management Investment in growth aligned to growth strategy Strategic investment in organic growth initiatives: + Win the Plumber + Innovate through design and partnerships + Strategic growth opportunities + After Sales & Service + Foundation activities Shareholder returns Target: EPS CAGR 5%
Slide 51: Summary & Conclusion
Summary & Conclusion URS MEYERHANS INVESTOR MARKET BRIEFING 49
Slide 52: In summary...
In summary... A MORE FOCUSED BUSINESS POSITIONED FOR GROWTH Clear and focused strategy – targeting above market revenue and profit growth BY 2025 GWA to be the trusted Strong financial position and and integrated solutions disciplined capital allocation provider in the delivery supports growth inves