Gwa Group Limited · ASX:GWA
Gwa — FY2024 Earnings Presentation
36 slides from Gwa's earnings presentation, Aug 19, 2024
Slide 1: FY2024 Full Year Results Presentation ASX cover letter
19 August 2024 The Manager Company Announcements Office Australian Securities Exchange Dear Sir or Madam GWA Group Limited (GWA Group) – FY2024 Full Year Results Presentation Please find attached for immediate release to the market the FY2024 Full Year Results Presentation for GWA Group. On 19 Augus
Slide 2: GWA Results Presentation
GWA Results Presentation Year ended 30 June 2024 19 th August 2024 Confidential
Slide 3: Our Presenters Today
Our Presenters Today Urs Meyerhans Calin Scott Craig Norwell Managing Director and CEO Group Chief Financial Officer Group Executive - Sales Confidential
Slide 4: Agenda
Agenda 01 Overview 02 Group Financial Results 03 Business Performance 04 New Products 05 Strategic Update 06 Summary & FY25 Outlook 07 Q&A Appendix Confidential
Slide 5: 1. Overview
CAROMA WETHVEN CLARK dorf Made For Life
Slide 6: FY24 Headlines
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Volume Growth through Disciplined Execution • Performance • Group volume growth of 2.1% with Australia and UK up 3.8% and 4.3% respectively offset by decline in New Zealand • Normalised EBIT and EBIT
Slide 7: Commitment to safety
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Commitment to safety • Worker insights (lead indicator) continue to increase • Recorded minor injuries with impacted workers returning relatively quickly to full duties • Continued focus on building c
Slide 8: 2. Group Financial Results
2. Group Financial Results Confidential
Slide 9: Continued growth in a challenging market
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook A$m Normalised1 FY24 FY23 % Change Revenue EBITDA 413.5 92.60 411.8 89.1 0.4% 4.0% Continued growth in a challenging market EBIT 74.20 70.4 5.4% Revenue EBIT Margin % 17.9% 17.1% 0.8pp • Australia rev
Slide 10: Sound performance despite softening market conditions in H2
Financial Business Summary & Overview New Products Strategy update A$m Normalised1 1H FY24 2H FY24 % Change FY24 results performance FY25 Outlook Revenue 206.00 207.50 0.8% 413.5 EBITDA 46.90 45.70 -2.5% 92.6 Sound performance despite softening EBIT 37.30 36.90 -1.1% 74.2 market conditions in H2 NPA
Slide 11: Underlying EBIT Improvement of 5% on prior year
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Normalised1 EBIT Bridge (A$M) Underlying EBIT Improvement of 5% on prior year 90.0 • Volume: group increase of 2.1% due to AU and UK, 85.0 partially offset by NZ. 9.6 80.0 3.0 • Price/Mix: price incre
Slide 12: Strong cash flow from operations and free cash flow
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Cash flow from Continuing Operations A$M FY24 FY23 EBITDA 92.60 89.10 Strong cash flow from operations and Net movement in Working Capital 8.00 10.40 free cash flow: Other 1.10 0.10 Cash Flow from Ope
Slide 13: FY24 final dividend of 8.0c per share fully franked
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook FY24 final dividend of 8.0c per share fully franked Dividends – cents/share 8.0 8.0 3.5 7.0 6.5 8.0 7.0 7.0 6.0 6.0 FY20 FY21 FY22 FY23 FY24 Final ordinary Interim ordinary 12 Confidential
Slide 14: Strengthening Financial Position
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook 30 June 30 June 30 June 30 June 30 June Metrics1 2020 2021 2022 2023 2024 Strengthening Financial Position Net Debt (A$M) 144.8 104.8 138.2 117.0 97.0 Leverage Ratio (times) Net Debt / EBITDA 1 1.9 1.
Slide 15: 3. Business Performance
3. Business Performance Confidential
Slide 16: Revenue up on FY23
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue up on FY23 FY24 Revenue Revenue commentary FY24 v FY23 $ Revenue & % of Group AUD 1H FY24 2H FY24 Australia AUD $m $m 171.6 170.7 • Disciplined execution of strategy with focus on customer ini
Slide 17: Revenue by State (AU)
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue by State (AU) Strong performance across Australia NSW A$m Revenue FY24 FY23 ∆ LY % Change o Despite R&R softness, strong H2 in the Builder and Projects segments fueled revenue growth YoY. NSW
Slide 18: Revenue by Merchant (AU)
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Revenue by Merchant (AU) Customer A vs PcP Customer B vs PcP Mixed Merchant Results across FY24 1HFY24 2HFY24 FY24 1HFY24 2HFY24 FY24 10.5% 4.9% 2 merchant partners in growth of just under 5% (0.3%) o
Slide 19: 4. New Products
4. New Products Confidential
Slide 20: Focused NPD launches targeting residential, commercial and entry level segments
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Focused NPD launches targeting residential, commercial and entry level market segments • Release of Contura II Hero Collection, showcasing latest design, technologies and materials • Introduction of m
Slide 21: 5. Strategy Update
5. Strategy Update Confidential
Slide 22: Excellent progress made on Strategy
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Excellent progress made on Strategy Key Performance Measures Progress Win the Plumber Win the Plumber o AU Plumber Bundle sales growth +8% on PcP 25,000 plumbers engaged o WTP delivered milestones thr
Slide 23: Refreshed Strategy: Win The Plumber remains a focus
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Refreshed Strategy: Win The Plumber remains a focus Making life better through innovation in everyday water Our 2027 Strategy experiences • Affirming continued commitment to Win the Plumber • Embeddin
Slide 24: Growth Pillars
Financial Business Summary & Overview New Products Strategy update Growth Pillars results performance FY25 Outlook Win the Plumber Care Residential Commercial “Trusted partner & “Lead the changing dynamic “Extend our Commercial “The Plumbers trusted solution leadership for in Residential solutions i
Slide 25: 6. Summary & FY25 Outlook
6. Summary & FY25 Outlook Confidential
Slide 26: We achieved volume growth in FY24 and responded swiftly to deteriorating market conditions
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook We achieved volume growth in FY24 and responded swiftly to deteriorating market conditions • FY24 – strong results in challenging market conditions o Delivery of sales & volume growth, as well as unde
Slide 27: Group Outlook FY25
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Group Outlook FY25 Region Commentary % of Group Sales • Mixed outlook for most market segments Australia 83% • Solid demand in health and aged care projects • The New Zealand economy is expected to re
Slide 28: Australia FY25 Outlook
Financial Business Summary & Overview New Products Strategy update results performance FY25 Outlook Australia FY25 Outlook Market segment GWA Focus Link to Strategy Commercial, new office build expected to • Healthcare and aged care projects Care decline, offset by positive outlook in health • Comme
Slide 29: 7. Q&A
7. Q&A Confidential
Slide 30: Disclaimer
Disclaimer o This Presentation contains projections and other prospective statements that represent GWA's assumptions and views, including expectations and projections about GWA's business, the industry in which it operates and management’s own beliefs and assumptions. Such matters require subjectiv
Slide 31: 8. Appendix
8. Appendix Confidential
Slide 32: FY25 Key Assumptions
FY25 Key Assumptions 1 Area Assumption Australian market backdrop BIS total building activity data2 is indicating a market decline of -2% in FY25 (constant prices) Price increase ~4% implemented in Australia from 1 February 2024 D&A (depreciation and amortisation) ~$5.0 - 7.0m excluding the impact o
Slide 33: Caroma remains our leading brand
Caroma remains our leading brand Segment Category Basins, Sinks, Project Sub-Segment1 Tubs & Baths 26% Taps & Showers 18% Resi, 17% 36% Valves & Other Multi-Res, 2% Merchant 6% 57% R&R, 56% Builder 17% Commercial, 21% Sanitaryware 44% Geography Brand International Other 9% 18% New Zealand 8% Dorf 2%
Slide 34: Australian Market Context: Quantity Completed Annually
Quantity Completed Annually 33 100,000 120,000 140,000 0 20,000 40,000 60,000 80,000 FY-2000 FY-2001 FY-2002 FY-2003 FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 Actual FY-2011 FY-2012 FY-2013 Forecast FY-2014 Residential¹ FY-2015 FY-2016 FY-2017 ¹ Approximately 17% of GWA’s Australian re
Slide 35: Australian Market Context: $m Approved Annually
$m Work Done 34 0 10,000 20,000 30,000 40,000 50,000 60,000 FY-2001 FY-2002 FY-2003 FY-2004 FY-2005 FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 Actual FY-2012 FY-2013 FY-2014 Forecast FY-2015 Commercial¹ FY-2016 FY-2017 FY-2018 ¹ Approximately 21% of GWA’s Australian revenue FY-2019 FY-2020 FY-2
Slide 36: Thank you
Thank you GWA Results Presentation Year ended 30 June 2024 19 th August 2024 Confidential