Gwa Group Limited · ASX:GWA

Gwa — H1 FY2012 Earnings Presentation

23 slides from Gwa's earnings presentation, Feb 14, 2012

  1. Slide 1: ASX cover letter for Half Year Results Presentation

    GWA Group Limited ABN 15 055 954 380 t 61 73109 6000 f 6173852 2201 wwnw.gwagroup.com.au S Level 2, HO (South Tower) 520 Wickham Street Fortitude Valley QLD 4006 GPO Box 1411 Brisbane QLD 4001 14 February 2012 ASX On-Line Manager Company Announcements Australian Securities Exchange Dear Sirs Financi

  2. Slide 2: For personal use only

    - GWA Group Limited : | | HHT] ait abt (s

  3. Slide 3: Half Year Presentation

    For personal use only Half Year Presentation 14 February 2012 Presented by: Peter Crowley Title: Managing Director

  4. Slide 4: Major Successes & Challenges for the Half Year

    Major Successes & Challenges for the Half For personal use only Year √ Restructuring ahead of schedule with 7% less employees at December 2011 √ Margin improvement for Heating & Cooling due to cost reductions √ Strong cash flow despite market decline √ Sale of Sebel and North America completed durin

  5. Slide 5: Result Highlights – H/Y to December 2011

    For personal use only Result Highlights – H/Y to 31 December 2011 ƒ Underlying sales down 11%. Overall revenue down 1% due to inclusion of Gliderol ƒ Trading EBIT down 9% ƒ Impact of lower building activity partially offset by cost improvements and Gliderol contribution ƒ Lower inventory levels desp

  6. Slide 6: Results - H/Y to December 2011

    Results- H/Y to 31 December 2011 For personal use only Half Year Half Year $000’s 31.12.11 31.12.10 Change Continuing Businesses Sales Revenue 314,995 318,891 -1.2% Trading EBIT 44,886 49,477 -9.3% EBIT Margin 14.2% 15.5% Trading Profit after Tax 27,393 29,304 -6.5%

  7. Slide 7: Results - H/Y to December 2011 (net profit)

    Results- H/Y to 31 December 2011 For personal use only Half Year Half Year $000’s 31.12.11 31.12.10 Trading Profit after tax 27,393 29,304 Discontinued Operations Profit/(Loss) after tax -6,679 3,854 Restructuring Expenses after tax -7,457 Nil Net Profit 13,257 33,158

  8. Slide 8: Major Variations in Trading EBIT for Continuing Businesses

    Major Variations in Trading EBIT for For personal use only Continuing Businesses $M ƒ Sales volumes adversely 10 20 30 40 50 60 impacted by absence of 0 Government stimulus, low 2010 49.5 building activity and poor sales of environmental water and Mix Volume -14.3 heaters ƒ Minimal price movements i

  9. Slide 9: Segment Results - H/Y to December 2011

    Segment Results- H/Y to 31 December 2011 For personal use only Half Year Half Year % Change $000’s 31.12.11 31.12.10 Bathrooms & Kitchens 35,940 41,215 -12.8% Heating & Cooling 7,192 7,120 1.0% Door & Access Systems 8,403 8,753 -4.0% Corporate costs (6,649) (7,611) 12.6% Continuing Operations before

  10. Slide 10: Sales Impacted by Reduced Government Programs and Market Decline

    Sales Impacted by Reduced Government For personal use only Programs and Market Decline A’000 Dec 11 Dec 10 % Change Sales 154,533 173,032 -11% ƒ Sales boosted last year by Trading BER, public housing and EBIT 35,940 41,215 -13% rebate programmes EBIT ƒ Wetherill Park transition to margin 23.3% 23.8%

  11. Slide 11: Lower Demand Offset by Cost Improvements

    For personal use only Lower Demand Offset by Cost Improvements A$000 Dec 11 Dec 10 % Change Sales 86,553 100,530 -14% ƒ Sales adversely impacted Trading by environmental product EBIT 7,192 7,120 +1% sales and slow summer season for evaporative EBIT margin 8.3% 7.1% +17% coolers ROFE 18.0% 16.9% ƒ So

  12. Slide 12: Gliderol Contribution Offsets Market Decline

    For personal use only Gliderol Contribution Offsets Market Decline A$000 Dec 11 Dec 10 % Change Sales 74,029 45,482 +63% ƒ Door furniture sales and Trading profit impacted by loss of EBIT 8,403 8,753 -4% market share as well as EBIT overall market decline margin 11.4% 19.2% -41% ƒ Gliderol integrati

  13. Slide 13: Strong Cash Flow Despite Market Decline

    For personal use only Strong Cash Flow Despite Market Decline $000’s 2011 2010 Operating cashflow from trading activities 58,874 58,927 Discontinued operations (836) 8,566 Restructure cash flows (6,860) (3,375) Working capital movements (783) 978 Total operating cash flow (before interest and tax) 5

  14. Slide 14: Financial Structure is Stable With Facilities Available to Fund Growth

    For personal use only Financial Structure is Stable With Facilities Available to Fund Growth ƒ Total facilities $300 million with maturity in 2014 - 2016 ƒ Net debt reduced to $187 million ƒ Investment grade metrics allow for $100 million acquisition using existing facilities

  15. Slide 15: Full Year Ordinary Dividend Expected to be Maintained at 18 cents

    Full Year Ordinary Dividend is Expected to For personal use only be Maintained at 18 cents per Share Fully Franked $000’s 2011 2010 Half Year trading profit after tax for continuing operations 27,393 29,304 Trading Earnings per share 9.1 cents 9.7 cents Interim Dividend 9.5 cents 9.5 cents

  16. Slide 16: Housing Activity Shows No Sign of Improvement

    For personal use only Housing Activity Shows No Sign of Improvement New Dwelling Activity 12 Month Moving Average 190,000 180,000 Moving Annual Numbers 170,000 160,000 150,000 140,000 130,000 120,000 f) Ju 3 Ju 4 Ju 5 Ju 6 Ju 7 Ju 8 Ju 9 Ju 0 D 3 D 4 D 5 D 6 D 7 D 8 D 9 D 0 D -11 -0 -0 -0 -0 -0 -0 -

  17. Slide 17: Growth Options are Being Assessed in Uncertain Market

    For personal use only Growth Options are Being Assessed in Uncertain Market ƒ With completion of Sebel and North America sales we can now focus on core businesses ƒ Recent investigations into potential acquisitions have not uncovered opportunities which meet our financial and strategic criteria ƒ Ma

  18. Slide 18: Product Rework on Evaporative Coolers Has been Ramped up

    Product Rework on Evaporative Coolers For personal use only Has been Ramped up ƒ There is a fault in evaporative coolers manufactured between 2000 – 2003 ƒ We have been advertising for the past 12 months to encourage households to contact Brivis ƒ We are working with fire authorities to escalate com

  19. Slide 19: Priorities for Next Half Year

    For personal use only Priorities for Next Half Year ƒ Finalise closure of Blackburn ƒ Progress non-core property sales ƒ Improve performance of Door & Access Systems ƒ Targeted market development to offset slow market ƒ Commission Moss Vale upgrade ƒ Finalise strategic review to prioritise growth

  20. Slide 20: Our Focus for 2011/12 is to Build a Stronger Business

    Our Focus for 2011/12 is to Build a Stronger For personal use only Business so we can Capture the Upside when Building Activity Improves ƒ Reduce cost base through restructuring ƒ Strengthen the balance sheet through sale of non-core assets ƒ New product offers eg electronic access systems, 5 star g

  21. Slide 21: 2011/12 Full Year Outlook

    For personal use only 2011/12 Full Year Outlook ƒ Second half sales expected to be 3% - 6% below first half in line with seasonal trend and low building approvals ƒ Trading EBIT expected to be down 10% - 15% on the first half due to lower volume and sales mix ƒ Restructuring will be completed in the

  22. Slide 22: Non-IFRS Financial Measures

    For personal use only Non-IFRS Financial Measures Given the significance of the restructuring expenses and discontinued operations the Directors believe the presentation of non-IFRS financial measures is useful for the users of this document as they reflect the underlying financial performance of th

  23. Slide 23: For personal use only

    - GWA Group Limited : | | HHT] ait abt (s

GWA Group — H1 FY2012 Earnings Presentation on 6ix