Gwa Group Limited · ASX:GWA
Gwa — Shareholder Meeting (October 2021)
35 slides from Gwa's shareholder meeting presentation, Oct 29, 2021
Slide 1: Annual General Meeting Presentation to Shareholders
29 October 2021 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sir Annual General Meeting Presentation to Shareholders In accordance with Listing Rule 3.13, we enclose the Chairman’s and Managing Director’s Address to Shareholders at the GWA Group Limited virtual Annua
Slide 2: Annual General Meeting
Annual General Meeting 29 October 2021 1
Slide 3: Online attendees – TEXT question process
Online attendees – TEXT question process 123-456-789 The question function has been enabled. You should see a messaging tab at the top of your screen If you wish to ask a question, please type the question in the “Ask a question” box and press the send arrow on the right hand side Your question will
Slide 4: Agenda
Agenda 01 Financial Statements 02 Chairman’s Address 03 CEO Presentation 04 Formal Business 05 Close 3
Slide 5: Financial Statements
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Financial Statements Financial statements for the year ended 30 June 2021 4
Slide 6: Chairman's Address
Financial Chairman’s CEO’s Formal Business Statements Address Presentation 02 Chairman’s Address 5
Slide 7: FY21 Result - solid 2H improvement provides momentum for FY22
Financial Chairman’s CEO’s Formal Business Statements Address Presentation FY21 Result - solid 2H improvement provides momentum for FY22 Improved 2H FY21 v 1H FY21 performance ‒ A challenging year BUT we achieved revenue improvement of 6%; EBIT up 13%; EBIT margin up 120 bps in 2H - demonstrates GWA
Slide 8: Ongoing commitment to sustainability at GWA
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Ongoing commitment to sustainability at GWA Sustainability remains fundamental to the way we conduct our business. Our approach to sustainability continues to be based around two central objectives: ‒ Operating in a sustainab
Slide 9: Executive Remuneration
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Executive Remuneration Remuneration outcomes in FY21: - Fixed Remuneration was frozen - Executive team eligible for Short-Term Incentive (STI) payments to recognise their disciplined response to weaker markets in 1H FY21 and
Slide 10: Board Renewal
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Board Renewal Board Renewal process underway ‒ The Board has commenced a formal review which will consider Board renewal and appointments ‒ We have appointed external advisers, Hattonneale, to provide assistance in this proce
Slide 11: CEO's Presentation
Financial Chairman’s CEO’s Formal Business Statements Address Presentation 03 CEO’s Presentation 10
Slide 12: Continued focus on Safety and Sustainability
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Continued focus on Safety and Sustainability Safety key outcomes FY21 Total Injury Frequency Rate 14 ‒ All GWA sites accredited to new global safety standard, ISO45001 12 ‒ Mental health ambassadors appointed on site and trai
Slide 13: Revenue up 2% however EBIT impacted by weaker Commercial segment
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Revenue up 2% however EBIT impacted by weaker Commercial segment A$m Normalised¹ FY20 FY21 % Change Revenue 398.7 405.7 1.8% ‒ Revenue up 2% reflects improved residential markets in 2H and EBITDA 92.2 88.4 -4.1% continued mom
Slide 14: Continued operational discipline helps mitigate weaker 1H markets
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Continued operational discipline helps mitigate weaker 1H markets Normalised¹ Continuing Operations EBIT Bridge (A$M) ‒ Volume/Mix: Reflects impact of COVID-19 on volumes primarily in 1H and impact of full year negative sales
Slide 15: Revenue uplift in 2H as markets improve
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Revenue uplift in 2H as markets improve FY21 Revenue vs pcp (A$) Revenue commentary $ Revenue & % of Group 1H 2H FY Australia ‒ 1H impacted by slowdown in the project segment and uncertainty due to $319.8m COVID-19 79% (FY20:
Slide 16: Strong cash generation maintained – operating cashflow up 16%
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Strong cash generation maintained – operating cashflow up 16% ‒ Continued strong focus on cash management Cash flow from Continuing Operations A$M FY20 FY21 EBITDA 92.2 88.4 ‒ Operating cash flow up 16% to $103.1m with Net mo
Slide 17: Strong financial position maintained – credit metrics enhanced
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Strong financial position maintained – credit metrics enhanced 30 June 30 June 30 June 30 June 30 June ‒ GWA remains in a strong financial position – credit Metrics1 2017 2018 2019 2020 2021 metrics enhanced Net Debt 79.8 97.
Slide 18: Methven integration complete
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Methven integration complete ‒ Revenue up in FY21 with strong growth in New Zealand and 7% International diversifying geographic base ‒ Integration cost synergies achieved target of A$3m in FY21 and A$6m total 1% ‒ Significan
Slide 19: Market driven innovation and new product development
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Market driven innovation and new product development ‒ Creation of the Sydney and Auckland centres of excellence ‒ Technical, design and sourcing capability, test rigs ‒ Significant investment in smart solutions ‒ Touchless,
Slide 20: Underpinned by centre of excellence
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Underpinned by centre of excellence ‒ New vertical and horizontal test rigs at Prestons Innovation and Distribution Centre enable modelling of hydraulic impacts in Commercial buildings and development of new water saving solu
Slide 21: Strategy on a page
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Strategy on a page Making everyday water experiences extraordinary – today, and for tomorrow To be the trusted and integrated solutions partner Strategy in the delivery of sustainable water solutions for bathrooms, kitchens a
Slide 22: Our strategic focus
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Our strategic focus Integrated and valuable customer experience by being 1. Deliver great customer experiences easy to do business with and consistent in delivery Connect, deepen and leverage plumbing 2. Win the plumber indus
Slide 23: FY22 outlook
Financial Chairman’s CEO’s Formal Business Statements Address Presentation FY22 outlook Key area FY22 commentary ‒ Group sales in 1Q FY22 flat compared to 1Q FY21 ‒ Australia sales up 6% despite some construction site and merchant closures during Trading 1Q FY22 lockdowns ‒ NZ sales down 32%, reflec
Slide 24: FY22 outlook (continued)
Financial Chairman’s CEO’s Formal Business Statements Address Presentation FY22 outlook (continued) Key area FY22 commentary Revenue focus FY22 ‒ FY22 focus on customer and consumer initiatives to generate revenue growth ‒ NPD focused on new bathroom ranges in Caroma New Product Developments ‒ Agree
Slide 25: Formal Business
Financial Chairman’s CEO’s Formal Business Statements Address Presentation 04 Formal Business 24
Slide 26: Online attendees – AUDIO question process
Online attendees – AUDIO question process 123-456-789 When the audio questions line is available, a link will appear on the home tab titled Asking Audio Questions If you would like to ask an audio question, pause the meeting broadcast and click on the link You will be prompted to enter your name and
Slide 27: Resolution 1 – Re-election of Darryl McDonough
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 1 – Re-election of Darryl McDonough That Mr Darryl McDonough, who retires as a director of the Company in accordance with clause 10.3 of the Company’s Constitution, be re-elected as a director of the Company. 26
Slide 28: Resolution 2 – Re-election of Peter Birtles
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 2 – Re-election of Peter Birtles That Mr Peter Birtles, who retires as a director of the Company in accordance with clause 10.3 of the Company’s Constitution, be re-elected as a director of the Company. 27
Slide 29: Resolution 3 – Remuneration Report
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 3 – Remuneration Report That the Remuneration Report for the year ended 30 June 2021 be adopted. 28
Slide 30: Resolution 4 – Approval of grant of performance rights
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 4 – Approval of grant of performance rights That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant of up to 600,000 Performance Rights (incorporating the
Slide 31: Resolution 5 – Approval of grant of performance rights
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 5 – Approval of grant of performance rights That for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is hereby given for the grant of up to 100,000 Performance Rights (incorporating the
Slide 32: ONLINE attendees – Voting
ONLINE attendees – Voting 123-456-789 When open, the vote will be accessible by selecting the voting tab at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or send butto
Slide 33: Resolution 1 and 2 voting results
Financial Chairman’s CEO’s Formal Business Statements Address Presentation Resolution 1 Re-election of Mr Darryl McDonough as Director FOR 192,792,009 97.60% OPEN 1,135,089 0.57% AGAINST 3,606,859 1.83% ABSTAIN 891,269 Resolution 2 Re-election of Mr Peter Birtles as Director FOR 195,186,628 98.80% O
Slide 34: Resolution 3, 4 and 5 voting results
Resolution 3 Adoption of Remuneration Report FOR 183,427,114 98.89% OPEN 964,162 0.52% AGAINST 1,097,934 0.59% ABSTAIN 1,544,266 Resolution 4 Approval of Grant of Performance Rights to Managing Director under the Long Term Incentive Plan FOR 183,544,408 98.52% OPEN 1,118,662 0.60% AGAINST 1,636,702
Slide 35: Annual General Meeting
Annual General Meeting 29 October 2021 34