Gwa Group Limited · ASX:GWA
Gwa — H1 FY2011 Earnings Presentation
23 slides from Gwa's earnings presentation, Feb 15, 2011
Slide 1: ASX cover letter for half year results presentation
GWA Group Limited S ABN 15.055 964 380 t 6173109 6000 f 6173852 2201 wwawi.gwagroup.com.au Level 2, HQ (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 15 February 2011 PO Box 1411 Brisbane QLD 4001 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sirs Financia
Slide 2: For personal use only
For personal use only
Slide 3: Half Year Presentation
Half Year Presentation 15 February 2011 Presented by: Peter Crowley Title: Managing Director Sis Group Limited
Slide 4: Major Successes and Challenges for the Half Year
SG GWA Group Limited Major Successes and Challenges for the Half Year | Se) ei ee ae, Increased revenue and margins reflecting improvement in residential housing market Brivis integration progressing well Strong sales through Building Education Revolution (BER) Gliderol acquisition completed Reducti
Slide 5: Operating Result Highlights – H/Y to December 2010
GWA Group Limited GS Operating Result Highlights — H/Y to 31 December 2010 # Underlying sales up 4%. Overall revenue up 13% inclusive of Brivis = Trading EBIT up 17% = Increased labour productivity = Higher EBIT margins reflecting leverage from increased volumes « Safety improvement being maintained
Slide 6: Results – H/Y to December 2010
GS GWA Group Limited Results- H/Y to 31 December 2010 Half Year ¢000’s 31.12.10 Continuing Businesses Sales Revenue 368,330 Trading EBIT 55,020 EBIT Margin 14.9% Trading Profit after Tax 33,158 Discontinued Operation (AT) (Nil) Half Year 31.12.09 Change 326,725 47,053 14.4% 27,691 (2,147) 13% 17% 20
Slide 7: Major Variations in Trading EBIT for Continuing Businesses
GS GWA Group Limited Major Variations in Trading EBIT for Continuing Businesses | Dec 2008 Volume Price and Mix Cost Cost Increases Savings Other Dec 2010 Improved housing activity increasing sales volumes Some price repositioning required due to stronger Australian currency Cost increases largely d
Slide 8: Segment Performance - Building Fittings
if | GWA Group Limited GS Results — H/Y to 31 December 2010 Segment Performance - Building Fittings $000’s 31.12.10 31.12.09 Change Sales Revenue 223,156 214,607 4% Trading EBIT 49,748 45,115 10% EBIT Margin 22.3% 21.0% Includes Bathrooms and Kitchens and Door and Access Systems products
Slide 9: Segment Performance - Building Fittings
GWA Group Limited GS Segment Performance - Building Fittings Bathrooms and Kitchens « Improved demand across all products particularly in NSW and WA * Higher EBIT margin due to volume benefits = Operational and business process improvements are driving cost reductions Door and Access Systems « Impro
Slide 10: Segment Performance – Heating and Cooling
| GWA | Group Limited Results — H/Y to 31 December 2010 Segment Performance — Heating and Cooling $000’s 31.12.10 31.12.09 Change Sales Revenue 100,386 83,359 20% Trading EBIT 7,120 8,515. -16% EBIT Margin 7.1% 10.2% Funds Employed 82,400 39,800 ROFE (Annualised) 17% 30%
Slide 11: Segment Performance - Heating and Cooling
| GS | GWA | | Group Limited Segment Performance —- Heating and Cooling DUX * Decline in environmental product sales following reduced Government rebates in 2009 * Market change to less profitable products negatively impacting margins » Moss Vale upgrade and new product development to underpin futur
Slide 12: Segment Performance - Furniture
GWA Group Limited GS Results — H/Y to 31 December 2010 Segment Performance -— Furniture $000’s 31.12.10 31.12.09 Change Sales Revenue 44,684 29,329 52% Trading EBIT 5,877 807 628% » Sales and profitability benefited from Building Education Revolution (BER) sales « Fundamentals in education market ar
Slide 13: Strong Cash Flow Reflects Improved Working Capital Management
GWA Group Limited GS Strong Cash Flow Reflects Improved Working Capital Management $000's 2010 2009 Cashflow from trading activities 65,370 57,544 Restructure cash flows (3,375) (2,675) Working capital movements 3,101 (21,362) Operating cash flow before interest and tax 65,096 33,507 —_—=—_ Capital
Slide 14: Financial Structure is Stable With Facilities Available to Fund Growth
GS | GWA | Group Limited Financial Structure is Stable With Facilities Available to Fund Growth « Total facilities $267.5 million with maturity in 2013 = Net debt reduced to $156 million pre Gliderol completion = Investment grade metrics allow for $100 million acquisition using existing facilities
Slide 15: Improved EPS and Interim Dividend Maintained in Line with Policy
| | Group Limited Improved EPS and Interim Dividend Maintained in Line with Policy $000’s 2010 2009 Profit after tax for continuing operations for the half year 33,158 27,691 Earnings per share: Total 11.0 cents 8.5 cents Continuing Operations 11.0 cents 9.3 cents Interim Dividend 9.5 cents 9.5 cent
Slide 16: Overhang of Housing Commencements & Flood Reconstructions will Underpin Demand
GWA Group Limited GS Overhang of Housing Commencements & Flood Reconstructions will Underpin Demand New Dwelling Activity 12 Month Moving Average 190,000 180,000 , 170,000 160,000 150,000 140,000 Moving Annual Numbers Ss SS) Ss BS) ss FF F SF FS S 5 s F FX KF XK XM XK KX HK XK Source: BIS Shrapnel —
Slide 17: A Wide Range of Business Improvement Initiatives Continue To Be Pursued
GS GWA Group Limited A Wide Range of Business Improvement Initiatives Continue To Be Pursued Wetherill Park performance is undergoing fundamental improvement Labour productivity measure continues to improve - Ave Revenue / employee H/Y Dec 09 - $ 374,000 — Ave Revenue / employee H/Y Dec 10 - $ 381,0
Slide 18: GWA Bathrooms & Kitchens
GWA Group Limited GS GWA Bathrooms & Kitchens Kitchens & Laundry | Sanitaryware Baths & Spas Tapware
Slide 19: GWA Door & Access Systems
| GS | GWA Group Limited GWA Door & Access Systems Electronic Access Systems Timber Door Furniture Aluminium Door & Hardware Furniture ¢ GHI ¢ Hillaldam ¢ Austral Aluminium Door & Systems Hardware ¢ Austral * Hillaldam ¢ GHI
Slide 20: GWA Heating & Cooling
ics | Group Limited GWA Heating & Cooling Electric Environmental Gas Storage hot water | Solar hot Heat pump Storage Continuous water hot water fhotwater flow
Slide 21: Growth Opportunities Are Constantly Under Review
GWA Group Limited G Growth Opportunities Are Constantly Under Review = Product and market extensions such as Gliderol continue to be focus for growth = Clear financial and strategic discipline for growth = Opportunities in our core business segments will become available over time » The sale process
Slide 22: 2010/11 Full Year Outlook
GS GWA Group Limited 2010/11 Full Year Outlook Sales in the second half expected to be slightly higher than the first half allowing for inclusion of Gliderol from February Underlying demand should be 3-4% higher for full year. This is lower than original expectations reflecting slow down in third qu
Slide 23: For personal use only
For personal use only