Gwa Group Limited · ASX:GWA
Gwa — Morgans Queensland Conference 2017
26 slides from Gwa's conference presentation, Oct 13, 2017
Slide 1: Investor Presentation – Morgans Conference
Investor Presentation Morgans Conference 13 October 2017
Slide 2: Disclaimer
Disclaimer This presentation contains non-IFRS financial measures to assist users to assess the underlying financial performance of the Group. The non-IFRS financial measures in this presentation were not the subject of a review or audit by KPMG. Page 2
Slide 3: Agenda
Agenda About GWA Summary of Group Strategy Progress on Group Strategy Summary Page 3
Slide 4: About GWA
About GWA G om Group Limited
Slide 5: Strongly re-positioned for growth
Strongly re-positioned for growth From GWA today Diverse Building Products business spread across Clear focus on two segments with strong market numerous segments (Dux, Brivis, Gliderol exited) positions and market leading brands in $2bn category Strong ability to manage through the cycle Over 50%
Slide 6: Focused business with strong market position
Focused business with strong market position GWA is a leading designer and supplier of branded building fixtures to households and commercial buildings Our business Our Core Brands Our strengths Leading designer and supplier Significant scale across key of branded building fixtures segments of b
Slide 7: Operating model meets local needs with global scale
Operating model meets local needs with global scale Our Value Creating Operating Model Consumer Product Manu- Solution Customer Distribution insights Design facturing Expertise Service Research drives Local design Collaborative, Extensive Ability to add Market-leading consumer and team deliver exclu
Slide 8: Strong and growing Continuing Operations
Strong and growing Continuing Operations FY17 Revenue by Division (A$m) FY17 EBIT by Division (A$m)* 6.3 96 350 87.6 Bathrooms & Kitchens Door & Access Bathrooms & Kitchens Door & Access Group Revenue (A$m) Group EBIT (A$m) 460 90 446 78.3 80.6 440 72.8 440 75 426 64.5 420 60 55 399 400 45 376 30 38
Slide 9: Strong financial position supports growth through the cycle
Strong financial position supports growth through the cycle 30 June 30 June 30 June GWA remains in strong financial position - credit metrics Metric 2015 2016 2017 continue to be consistent with investment grade Net Debt 94.8 88.4 79.8 Leverage Ratio Net debt $80m – reflects strong cash generati
Slide 10: Margin resilience through the cycle
Margin resilience through the cycle EBIT (A$m) and margin (%) GWA focused on maintaining margin resilience 90 17.8 18.1 20 through the cycle: 17.1 80 16.1 18 14.6 78.3 80.6 70 16 72.8 14 ~50% exposure to Renovations and Replacement 60 64.5 market - less cyclical than new build market 12 50 55 10
Slide 11: Strong presence in R&R; low exposure to Multi-res
Strong presence in R&R; low exposure to Multi-res B&K revenue by end market (%) D&A revenue by end market (%) Commercial Residential 23% 22% Multi-Res 3% Multi- Residential 11% Renovation & Replacement Residential Renovation & Commercial 52% Replacement 53% 15% 21% Source: GWA estimates Page 11
Slide 12: Summary of Group Strategy
Summary of Group Strategy Page 12
Slide 13: Strategy – transformation from push to pull
Strategy – transformation from push to pull From Push To Pull Past: Manufacturing Driven Current: Customer focused Future: Customer and consumer centric Page 13
Slide 14: Corporate Priorities
Our strategy on a page Our Mission: To build GWA as the most trusted and respected company in the building sector Our Purpose: MAKING LIFE BETTER ……. with simple, superior water solutions with a superior range of access and security systems Bathrooms & Kitchens Door & Access Systems GWA Operational
Slide 15: GWA continuing to grow revenue ahead of the market
GWA continuing to grow revenue ahead of the market Focus on building profitable market share in core segments drives top line growth ahead of the market 1 2 GWA end market exposure Market activity FY17 Renovation & Overall market remains relatively flat Replacement Change (0.2)% (MAT) Residential Re
Slide 16: Renovation & Replacement segment remains stable
Renovation & Replacement segment remains stable Renovation Activity (A$bn) Sources: ABS, ANZ Research Page 16
Slide 17: ..and expected to remain so as housing turnover below peak
..and expected to remain so as housing turnover below peak Housing sales (‘000s) Sources: ABS, ANZ Research Page 17
Slide 18: Progress on Group Strategy
Progress on Group Strategy Page 18
Slide 19: Continued progress on strategy
Continued progress on strategy Strategic priority Progress against priorities Growing share consistently in core segments Leverage and build on core assets & brands to Strong new product and breakthrough innovation pipeline in FY18 drive revenue and market share growth Consumer engagement – co
Slide 20: Deliver consistent consumer experience to grow R&R
Deliver consistent consumer experience to grow R&R Digital touch points STAGES TRIGGER/ IDEATION RESEARCH PROJECT PLANNING CONSTRUCTION COMPLETION RENOVATION JOURNEY Physical touch points Page 20
Slide 21: Consumer concept centres to drive consumer engagement
Consumer concept centres to drive consumer engagement New Consumer Concept Centres in Adelaide and Sydney Seamless consumer experience across physical and digital touch points Optimise brand experience in partner showrooms Adelaide centre to open 18 October 2017 Sydney (Alexandria) expecte
Slide 22: Value-add solutions drives improved customer engagement
Value-add solutions drives improved customer engagement Implemented Joint Business Plans with major merchants driving agreed targets and initiatives Specific customer plans for Renovation and Replacement including product ranging, improved presence in showrooms and trade counters of major mercha
Slide 23: New national distribution centre - Prestons
New national distribution centre - Prestons New national distribution centre for Bathrooms & Kitchens at Prestons, NSW Consolidate B&K’s warehouse operations into 31,000 sqm purpose-built facility State of the art warehousing and R&D facilities on-site Supported by new warehouse management s
Slide 24: Summary
Summary Group Limited
Slide 25: Summary
Summary GWA significantly re-positioned for growth Clear focus on two core divisions with strong ability to compete in ~$2 billion addressable market Solid financial position supports growth agenda with strong cashflow generation Focus on margin resilience to manage through the cycle Over 50%
Slide 26: Investor Presentation – Morgans Conference
Investor Presentation Morgans Conference 13 October 2017 Page 26