Gwa Group Limited · ASX:GWA
Gwa — Shareholder Meeting (October 2022)
25 slides from Gwa's shareholder meeting presentation, Oct 28, 2022
Slide 1: 2022 Annual General Meeting ASX Release
28 October 2022 ASX Release 2022 Annual General Meeting In accordance with ASX Listing Rule 3.13.3, GWA Group Limited (GWA) attaches the Chairman’s and Managing Director’s address to be delivered at GWA’s 2022 Annual General Meeting at 10.30 am today in Brisbane. The release of this announcement was
Slide 2: Annual General Meeting Presentation
Annual General Meeting Presentation 28 October 2022 1
Slide 3: Agenda
Agenda 01 Financial Statements 02 Chairman’s Address 03 CEO Address 04 Formal Business 05 Close 2
Slide 4: Financial Statements
01 Financial Statements Financial statements for the year ended 30 June 2022 3
Slide 5: Chairman's Address
02) Chairman’s Address IG GWA eL Group Limited | METHVEN ARK dorf
Slide 6: Pleasing result in light of challenging economic conditions
Pleasing result in light of challenging economic conditions • Improved financial performance FY22 vs FY21 ‒ Revenue up 3.2%; Normalised EBIT up 9.3%; EBIT margin up 100 bps • Balance sheet remains solid ‒ 8.0 cents per share fully franked final dividend (full year dividend to 15.0c per share) up 20%
Slide 7: Ongoing commitment to sustainability
Ongoing commitment to sustainability • GWA’s approach to sustainability continues to be based around two central objectives ‒ Operating in a sustainable manner across our business by managing our resources as efficiently as possible and by acting in a socially responsible manner ‒ Providing leading-
Slide 8: Executive Remuneration
Executive Remuneration • Remuneration outcomes in FY22 ‒ Implemented change in variable remuneration mix with greater weighting on long-term incentives with continued focus on short-term financial targets and critical non-financial KPIs ‒ Due to the disciplined response to everchanging market condit
Slide 9: Your Executive
Your Executive • FY22 was the first full year for our new CEO/MD Urs Meyerhans • There were several new appointments to the Executive Leadership Team during the year: - Chief Financial Officer – Calin Scott - General Manager, Supply Chain and Innovation – Caroline Sunaryo - Company Secretary and Gen
Slide 10: Board Renewal Process
Board Renewal Process • Continued process to consider Board renewal and appointments • Board appointed external advisers, Hattonneale, to provide assistance in this process • Changes to Board in 2022: - Peter Birtles retired as Non-Executive Director on 30 June 2022 - Alison Barrass retires as Non-E
Slide 11: CEO Address
03 | CEO Address 10/G GWA Group Limited
Slide 12: Improved safety performance
Improved safety performance Total Injury Frequency Rate • Reduction in in Total Injury Frequency Rate from 4.3 to 1.9 in FY22 14.0 13.0 - Continued risk management 12.0 - Improved reporting 10.0 10.0 • Proactive COVID safety management 8.0 - Successfully managed changing COVID 6.2 6.0 requirements 4
Slide 13: Normalised EBIT up 9.3% with solid uplift in EBIT margin
Normalised EBIT up 9.3% with solid uplift in EBIT margin • Improved Group Revenue driven by: - Australian performance – up 7% PcP, offset by - Decline in New Zealand (Covid related impact) – down 17% PcP - International markets, UK performed well, offset by weakness in China (adoption of ‘Dynamic’ z
Slide 14: Group revenue improved by +3% vs. FY21
Group revenue improved by +3% vs. FY21 FY22 Revenue vs pcp (A$) Revenue commentary $ Revenue & % of Group FY20 FY21 FY22 Australia 323.2 340.6 319.8 • Sales grew by 7% on the prior period $340.6m 81% • Strong performance in R&R segment (both Commercial and +7% on PcP Residential) FY20 FY21 FY22 New
Slide 15: Price rises enable effective mitigation of supply chain disruptions
Price rises enable effective mitigation of supply chain disruptions • Volume/Mix: reflects negative impact of COVID-19 on volumes, particularly in international markets partially offset by favourable sales mix in Australia Normalised¹ EBIT Bridge (A$M) • Price: Price increase ~3% implemented from Ju
Slide 16: FY22 full year dividend increased by 20% from FY21
FY22 full year dividend increased by 20% from FY21 • Final dividend of 8.0 cents per share fully franked 9.5 represents an increase of 23% vs FY21 • This brings the FY22 full year dividend to 15.0 8.0 cents per share fully franked, an increase of 20% 3.5 6.5 vs FY21 • FY19 reported results included
Slide 17: Good progress with key strategic initiatives
Good progress with key strategic initiatives • Win the Plumber ‒ Increased engagement with ANZ plumbers • Innovate through design & partnership ‒ 5 year NPD roadmap completed ‒ SKU reviews completed • Customer experience ‒ Customer journey mapping completed ‒ Brand and Customer Value proposition def
Slide 18: How we win the Plumber
How we win the Plumber Connect, deepen and leverage plumbing industry relationships • Plumber’s Centre of Excellence Provide Technical Services & • Technical Services Support • Digital solutions through Plumber’s Hub • Apprentice Training Program Own Plumber Training & • Industry Endorsed Plumber CP
Slide 19: Defining a compelling brand and customer value proposition
Defining a compelling brand and customer value proposition • 3 phases of research conducted WE CONFIRMED OUR MARKET LEADER POSITION Caroma is the #1 most well known brand across ANZ markets. GWA HISTORICAL & COVERING GWA & Methven is known for its innovation & CURRENT STATE COMPETITORS expertise in
Slide 20: Digital
Digital • Digital tools for customer implemented on caroma.com.au ‒ Virtual reality & augmented reality ‒ 3D planning tools ‒ Virtual tour of flagship store in Alexandria, NSW • Digital engagement of products allows customers the convenience of engaging within the comfort of their own home 19
Slide 21: ERP implementation update
ERP implementation update • Implementation of ERP/CRM across ANZ • Short term impact on customers – planned to be fully resolved in H1, FY23 • Next steps – Ongoing focus on internal efficiencies and customer experience Next Steps Improving internal Enhancing customer Building resilience efficiency e
Slide 22: FY23 outlook
FY23 outlook Key focus FY23 commentary Trading Update 1QFY23 • Solid start to FY23 – 1QF23 Group revenue up 8.0%vs PcP ‒ Australia sales up 7% No material change to end ‒ NZ sales up 24% (reflects 5 week shutdown in PcP) markets since FY22 result ‒ UK sales down 3% • Pricing - average price increase
Slide 23: Formal Business
04 | Formal Business 2G GWA Soup tints | METHVEN | dorf
Slide 24: Poll
Poll Resolutions 1-3: Re-election of directors: • Mr Stephen Goddard; and • Mr John Mulcahy. Election of: • Mr Richard Thornton. Resolution 4: Adoption of the Remuneration Report for the year ended 30 June 2022. Resolution 5: Approval of the issue of Performance Rights to the Managing Director & CEO
Slide 25: Annual General Meeting Presentation
Annual General Meeting Presentation 28 October 2022 24