Gwa Group Limited · ASX:GWA
Gwa — Investor Day (March 2024)
52 slides from Gwa's investor day presentation, Mar 7, 2024
Slide 1: GWA Strategy Update and Site Tour ASX Release
7 March 2024 ASX Release GWA Strategy Update and Site Tour GWA Group Limited (GWA) is hosting a Strategy Update and Site Tour on Thursday, 7 March 2024, at the company’s Innovation and Distribution Centre, Prestons, Western Sydney, commencing at 10.00 am (AEDT). Attached is a copy of the presentatio
Slide 2: GWA Strategy Update and Site Tour
GWA Strategy Update and Site Tour 7 March 2024
Slide 3: Agenda
Agenda Strategic Update 5 Overview and safety focus Urs Meyerhans 12 Strategic Plan GWA strategy by pillar 17 Win the plumber Craig Norwell 22 Innovate through design and partnerships Caroline Sunaryo 27 Grow aftermarket offerings Craig Norwell Our foundations 32 Customer experience Melissa Hayes 38
Slide 4: Executive Leadership Team
Executive Leadership Team URS MEYERHANS CALIN SCOTT CRAIG NORWELL ERNIE LAGIS MANAGING DIRECTOR AND CEO GROUP CHIEF FINANCIAL OFFICER GM SALES COMPANY SECRETARY CAROLINE SUNARYO RITESH PATEL MELISSA HAYES PATRICIA OLIVER GM SUPPLY CHAIN & INNOVATION CHIEF INFORMATION OFFICER GM MARKETING GM PEOPLE &
Slide 5: Introduction to GWA
Introduction to GWA GWA CAROMA METHVEN CLARK _ dorf Group Limited 1G
Slide 6: Overview & Safety Focus
Overview Urs Meyerhans & Safety Focus 5
Slide 7: Workplace Health and Safety
Ongoing commitment Workplace Health and Safety 1950.0 Worker 1750.0 insights No. Worker Insights 1550.0 1350.0 Worker insights (a leading 1150.0 indicator) continues to increase in 950.0 FY24. Resulting in improved 750.0 incidence reporting. WIFR- FYTD WIFR- 12 month rolling Total Injury Refreshed w
Slide 8: Key take-aways from today
Key take-aways from today GWA has established a strong position across our key target markets We have executed well through a period of subdued market conditions Financial and operating results in 1H24 reflect our disciplined approach Our strategic plans have established a strong platform for growth
Slide 9: Regional Diversification
Regional Regional diversification reduces Diversification group risk to a single market Group 1H FY24 Australia 1H FY24 United Kingdom, 7% SA, 8% New Zealand, 9% WA, 12% NSW, 35% QLD, 20% Australia, 84% VIC, 25% Australia New Zealand United Kingdom NSW VIC QLD WA SA 8
Slide 10: Diverse markets across the Australian building sector
Diverse markets across End market diversification provides stability through the Australian building sector the cycle and provides the platform for growth. $’m Capitalise on Market leader position in Commercial New Build Grow from Established position in R&R and Residential New Build Increase share
Slide 11: Market outlook (AU)
Market outlook (AU) Repair & Renovation (R&R) Commercial Short term Short term • Subdued activity expected to continue in Residential R&R • GWA expects to maintain positive momentum • Solid pipeline in Commercial R&R • Currently seeing good momentum in health & aged care – expected to continue Long
Slide 12: Supply Chain Update
Supply Chain Update Challenges managed with initiatives in place to mitigate risks + Shipping contracts in place + Access to multiple freight carriers + Dual sourcing capabilities + Healthy stock on hand levels with targeted stock build + Safety stock at manufacturing sites for fast moving products
Slide 13: Strategic Plan
Strategic Plan Urs Meyerhans 12
Slide 14: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 15: Overarching objective of the strategy is to increase the Customer Pull
Overarching objective of the strategy is to increase the Customer Pull Merchants Purchase Builder Plumber Decision Consumer Commercial Plumber Advice Architect Plumber Designer Developer 14
Slide 16: Excellent progress made on Strategy
Excellent progress made on Strategy KPM 2025 Targets Progress Win the Plumber Win the Plumber 25,000+ plumbers engaged 21,700+ plumbers signed up and categorized; Technical services provided (quantity) 11,500 plumbers engaged in technical services: • More than 1,000 Innovate Through NPD sales >10% o
Slide 17: Our FY24 Priorities to ensure Disciplined Execution
Our FY24 Priorities to ensure Disciplined Execution In the context of Customer Profitable our overall strategy, first volume growth we set two priorities: Agile ways of working Big bets Customer first mindset Win the core Respond on time New Product launch Deliver on time Technical Services Right fi
Slide 18: GWA Strategy by Pillar: Win the Plumber
GWA Strategy by Pillar Craig Norwell Win the Plumber 17
Slide 19: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 20: Win the plumber
Win the BY 2025 plumber #1 choice to plumbers as their technical partner delivering Connect, deepen and trusted, and valued, services and solutions. leverage plumbing industry relationships + Common denominator in diverse customer base + Quality of Plumber + Products + Services defines customer expe
Slide 21: What we have achieved
What we Key Performance have achieved Measures >25,000 plumbers engaged Plumbers trained* Technical services Breakthrough in ANZ Created superior Customer provided* plumber customer technical services collaboration develop base scale and training superior solutions *Number of + Quality (NPS) for eac
Slide 22: What's next
What’s next Provide technical Own plumber training Create plumber Superior plumbing services and support & accreditation loyalty solutions Technical services Foundation training for Coverage and Continuous improvement plumbers & apprentices engagement Digital solutions through Customer led innovatio
Slide 23: Innovate through Design & Partnership
GWA Strategy by Pillar Caroline Sunaryo Innovate through Design & Partnership 22
Slide 24: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 25: Innovation through design & partnership
Innovation through BY 2025 design & partnership Recognised as progressive industry leaders in sustainable Leverage in-house capability bathroom, kitchen and laundry solutions. and global partnerships to fast-track value creation and portfolio modernisation + Product trends are emerging and progressi
Slide 26: Our FY24 Priorities to ensure Disciplined Execution
Our FY24 Priorities to ensure Key Performance Disciplined Execution Measures Measures FY25 Target Vitality Index >10% NPD sales as a % of overall Sales within 2 years Faster Vitality Index GWA Point of Portfolio Speed to market average >20% to Market >10%* Differentiation Optimisation speed to marke
Slide 27: What's next
What’s Leverage strategic partnerships to deliver affordable and smart bathroom next solutions within care, commercial and residential applications Affordable Everyday Smart Connected Affordable Assistive Dementia & Mobility Connected Care Care Living and Aged Care Support Collection Technology Coll
Slide 28: Grow After Market Offering
GWA Strategy by Pillar Craig Norwell Grow After Market Offering 27
Slide 29: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 30: After-market
After- BY 2025 market Recognised for technical and service superiority for lifetime of our products and solutions Build a comprehensive after-market capability + ANZ bathroom replacement and renovation 3x new build value + GWA under-indexes our ‘rightful share’ in R&R + Competitive advantage servici
Slide 31: What we have achieved
What we Key customer Key have achieved collaborations Performance Measures Growth in spare Embed the fundamentals parts sales Building 13.5k 300 branches services revenue Customer base Merchant partners Establish customer base of Partner with Merchants to maintenance plumbers deliver ‘real-time’ nee
Slide 32: What's next
What’s next Spare parts Services Smart Solutions (B2P) (Asset owners (Connected & & Property Managers) Modular) Issue identification Asset Services Modular Fulfillment / Delivery agreements bathrooms & Installation installation Whole of Life solutions Plumber services Specification Smart connected D
Slide 33: Our Foundations: Customer Experience
Our Foundations Melissa Hayes Customer Experience 32
Slide 34: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 35: Customer experience
Customer BY 2025 experience We provide customers’ product, services and purchase experiences that set Delivering “Integrated Customer the enviable Experience with structured brands benchmark. and category portfolios” + To be the brand of choice + Our Customers’ journey involves many critical, and of
Slide 36: What we have achieved
What we Key Performance have achieved Measures Brand Equity Increase with measurement through bi-annual brand equity surveying Increase in Net Ensure a compelling Create easy & Ensuring complete, Promoter Score market proposition engaging channel correct and across Merchants and experiences connecte
Slide 37: What's next?
What’s next? Ensure a compelling Create easy & Ensuring complete, market proposition engaging channel correct and experiences connected data Caroma - Made for Life Create training hubs Deliver product information (Customer Launch - in support of launching the Merchant Channels) Finalise and execute
Slide 38: Customer Experience
Customer Experience Breathing life into our Caroma market proposition We simplified our offering, make it easier to choose Caroma as aligned to needs of our defined Customer profiles & reaffirmed our reason for being the bathroom leader. 37
Slide 39: Our Foundations: Digital
Our Foundations Ritesh Patel Digital 38
Slide 40: Strategy on a page
Strategy Strategy Making everyday on a page water experiences To be the trusted and integrated solutions partner in the delivery of sustainable water solutions for bathrooms, kitchens and laundries extraordinary– today, and for Focus tomorrow Win the Innovate through Grow our Focus on strategic plum
Slide 41: Investment in digital opportunities to deliver superior customer experience
Investment in digital A stronger emphasis on digital BY 2025 opportunities to deliver channels is crucial, re-thinking A technologically the way we connect superior customer with Customers connected experience, bringing purchasing experience convenience across the entire bathroom, kitchen and laundr
Slide 42: What we have achieved
What we have achieved Digital ERP Modernization New Digital Plumbers Hub Over 200+ improvements and 14 version updates have been deployed was launched with over 2,000 since Go-Live, improving GWA efficiency and productivity. registered plumbers. How can I find the Finance Customer Service Supply Cha
Slide 43: What's next
What’s next Customer Segment Horizon – 2024 (H1) Horizon 2 – 2024 (H2) Horizon 3 – 2025 (H3) Merchant Serve Me Grow Me Innovate with Me Plumber Find & Spec Products Install & Maintain Products Grow Me & My Business Consumer Inform Me Help Me Connect Me Specifier Inform Me Help Me Teach Me New Caroma
Slide 44: Financial Strength & Capacity for Growth
Financial Strength Calin Scott & Capacity for Growth 43
Slide 45: Returns to shareholders
Returns to shareholders $182m in dividends paid to shareholders 8.0 in the last 5 years. 3.5 6.5 7.0 Reflecting an average payout Ratio of 80% of Normalised Net 9.5 8.0 Profit After Tax. 7.0 7.0 6.0 6.0 44
Slide 46: Strong financial position
Strong financial position GWA remains in a strong financial position to fund investment in both organic and inorganic opportunities X times $’m $180m multi-currency facility recently renewed and expires in October 2026 $40m bi-lateral facility renewed matures October 2024 Facility headroom of $123m
Slide 47: Capital management aligned to growth strategy
Capital management Investment in growth aligned to growth Strategic investment in growth initiatives: strategy + Win the plumber + Innovate through design and partnerships + Grow after market + Strategic growth opportunities + Profitable volume growth Shareholder returns + Customer first initiatives
Slide 48: Summary & Conclusion
Summary Urs Meyerhans & Conclusion 47
Slide 49: Key take-aways from today
Key take-aways from today GWA has established a strong position across our key target markets We have executed well through a period of subdued market conditions Financial and operating results in 1H24 reflect our disciplined approach Our strategic plans have established a strong platform for growth
Slide 50: In Summary
In Summary A more focused business positioned for growth Clear and focused strategy – targeting above market revenue and profit growth Strong financial position and disciplined capital allocation supports growth investment and sustainable value creation for shareholders BY 2025 GWA to be the trusted
Slide 51: Questions and Answers
Questions and Answers 50 Glam CAROMA = METHVEN CLARK dorf Group Limited
Slide 52: Site Tour
Site Tour ANDY GRIGOR JOHANN KARUNARATNE SCOTT IRVING DR STEVE CUMMINGS HEAD OF DESIGN & INNOVATION HEAD OF DESIGN NATIONAL LOGISTICS MANAGER INNOVATION DIRECTOR – OF PRODUCT EXCELLENCE SMART SOLUTIONS 51