GWA : FY20 Half Year Results Presentation

17 February 2020

ASX On-Line

Manager Company Announcements

Australian Securities Exchange

Dear Sir

Financial Results Presentation for the Half Year Ended 31 December 2019

We enclose the following document for immediate release to the market:

• Half Year Results Presentation

On 17 February 2020 at 10:00am (AEDT), GWA will be hosting a webcast of its FY20 half year results briefing. The webcast is accessible via the GWA website at www.gwagroup.com.au.

This document was authorised for release by the GWA Board.

Yours faithfully

R J Thornton

Executive Director

Superior Solutions for Water

Results

Presentation

Half Year ended 31 December 2019

17 February 2020

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.

Financials have been adjusted for IFRS16 Leases unless otherwise stated.

2

Agenda

01 Overview and key themes

02 Financial results

03 Strategic progress

04 Summary and outlook

05 Appendix

3

01 Overview and key themes

4

Overview		Financial results		Strategic progress		Outlook		Appendix

Solid performance given weaker Australian residential housing conditions

Group EBIT within guidance

• Revenue impacted by market conditions in Australia and retailer de-stocking in Q1 and Q2 FY20
• Revenue growth in New Zealand and International markets
• EBIT margins in the Australia business (excluding Methven) broadly maintained
• Acceleration of cost-out savings and Methven synergies mitigates a significant amount of revenue decline

Superior water solutions strategy remains on track, with Methven integration ahead of target

• Market share maintained in Australia (excluding Methven); overall Australian market share increased due to Methven
• Strengthening relationships with merchant partners through joint business planning and core range extension
• Increased collaboration with secondary customers capturing segment opportunities (Aged Care, Commercial Renovation & Replacement) with commercial order bank strong and in growth

FY20 guidance maintained

• GWA is positioned to capitalise on anticipated market recovery in early FY21
• Continued investment in revenue enhancing and cost-out opportunities (Caroma Smart Command®, brand initiatives and consolidated distribution centres and offices)
• Leveraging Methven improved performance and international capability to further diversify earnings
• FY20 normalised¹ EBIT expected to be $80-85m

5	¹ Normalised is before $(0.4)m in significant items (after tax) relating to integration costs
	associated with the acquisition of Methven

02 Financial results

6

Overview		Financial results		Strategic progress		Outlook		Appendix

Operational discipline delivers EBIT within guidance range

Normalised¹ from continuing operations² includes Methven in 1H FY20 but not1H FY19

	A$m Normalised¹	1H FY19	1H FY20	% Change
	Exclud es M et hven	Includ es M et hven
	Revenue	182.6	206.3	12.9%
	EBITDA	46.1	48.1	4.3%
	EBIT	39.1	38.1	-2.6%
	NPAT	26.2	24.0	-8.2%
	EBIT Margin %	21.4%	18.5%	-2.9pp
	EPS	9.9c	9.1c	-0.8c
	Interim Dividend	9.0c	8.0c	-1.0c

• EBIT of $38.1m within $37-41m guidance range provided at the AGM
• Net profit down (8.2)% on prior year primarily due to increased interest costs on the debt related to the acquisition of Methven
• EBITDA up 4.3% due to the inclusion of Methven earnings and depreciation in 1H FY20 and slightly higher depreciation in GWA
• Effective tax rate 29.2%
• Ongoing robust financial position enables fully-franked interim dividend of 8 cents per share

7		¹ Normalised is before $(0.4)m in significant items (after tax) relating to integration costs associated
	with the acquisition of Methven
		² Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018

Overview		Financial results		Strategic progress		Outlook		Appendix

Operational discipline maintains EBIT margin

Normalised¹ from continuing operations² (pro forma) includes Methven in 1H FY20 and1H FY19

			Pro Forma
	A$m Normalised¹	1H FY19	1H FY20	% Change
	Includ es M et hven	Includ es M et hven
	Revenue	233.1	206.3	-11.5%
	EBITDA	52.6	48.1	-8.6%
	EBIT	43.3	38.1	-12.1%
	NPAT	28.4	24.0	-15.2%
	EBIT Margin %	18.6%	18.5%	-0.1pp
	ROFE %	19.6%	15.6%	-4.0pp
	EPS	10.7	9.1	-1.6c
	Interim Dividend	9.0c	8.0c	-1.0c

• Revenue reflects the decline in residential new build and renovation construction activity in Australia coupled with trade destocking and lapping a strong 1H FY19 in Methven Australia due to pipeline fill
• Ongoing strength in commercial activity and international growth partially offsets the residential revenue decline in Australia
• ~$8m of cost management and $1m Methven synergies (both higher than originally targeted) have limited EBIT decline to (12.1)% with continued investment in strategic initiatives
• EBIT margin maintained
• Net profit down (15.2)% on prior year primarily due to increased interest costs on the debt related to the acquisition of Methven
• ROFE decline reflects a combination of lower earnings and increased goodwill related to the acquisition of Methven

8		¹ Normalised is before $(0.4)m in significant items (after tax) relating to integration costs associated
	with the acquisition of Methven
		² Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018

Overview		Financial results		Strategic progress		Outlook		Appendix

Market share growth in Australia including Methven

Market Data¹

Market Segment	1H FY20 vs
C hange vs prio r co rrespo nding perio d	1H FY19
Residential detached housing	-12%
Multi-Residential	-14%
Commercial (new build)	2%
Rennovation & Replacement	-5%
(commercial and residential)
Total addressable market	-6%

Market share maintained on a sales-out basis2

23.2

2.4

					20.7		20.8	20.8
			20.3
	19.6

• Trading conditions deteriorated in 1H FY20 predominantly in detached and multi-residential housing
• Residential renovation decreased due to the significant decline in existing housing turnover (refer slide 31)
• Commercial activity (new build / R&R) remains solid, particularly across the eastern seaboard, but did not fully offset declines in the other segments
• GWA Australia (ex Methven) has held market share on a sales-out basis²
• Overall market share, including Methven's contribution, has increased to 23.2% of the addressable Australian market

	Dec 15	Dec 16	Dec 17	Dec 18	Dec 19
9				Methven			GWA (ex Methven)
	¹ Source: BIS Oxford Economics and GWA estimates Australia market
		² GWA Australia (ex Methven) revenue on a 'sales out' basis (i.e. adjusted for customer destocking)

Overview		Financial results		Strategic progress		Outlook		Appendix

New Zealand performance improving and growth in International continues

Continuing operations¹ (pro forma) includes Methven in 1H FY20 and1H FY19

			Pro Forma
	A$m Revenue	1H FY19	1H FY20	% Change
	Includ es M et hven	Includ es M et hven
	Australia	191.2	162.8	-14.8%
	New Zealand	27.2	27.5	0.7%
	International	14.7	16.0	9.1%
	Continuing operations	233.1	206.3	-11.5%

• Australia revenue impacted by weak market partially offset by improved mix
• New Zealand revenue increase reflects a solid performance across both Methven and GWA's existing business. Methven now in growth after going backwards for three consecutive years
• International increased solidly across both the United Kingdom and Asia, up ~7% and ~26% respectively with continued focus on customer development opportunities

10	¹ Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018

Overview		Financial results		Strategic progress		Outlook		Appendix

Strong cost management and Methven synergies

Normalised¹ continuing operations² includes Methven in 1H FY20 but not1H FY19

A$M

45

40

35

30

25

20

15

10

5

0

Normalised¹ Continuing Operations EBIT Bridge (A$m)

(11.9)		3.8
		8.0
	1.0	(1.9)

39.1

38.1

1H FY19 Volume/Mix	Price	FX	Net cost	Methven	1H FY20
			changes	contribution

• Volume/Mix: impacted in Australia by weak market and trade destocking, slightly offset by improved mix
• Price: Price increase in November 2019 will impact more in 2H FY20
• FX: Weaker AUD on product purchases mostly mitigated through forward contracts
• Net cost changes: higher savings through ongoing SG&A cost discipline and higher than originally targeted savings from optimisation of supply chain have more than offset input cost inflation. These have enabled increased investment in growth initiatives, such as: marketing spend; Caroma Smart Command® and warehouse and office consolidation costs
• Methven: improved significantly on 2H FY19. Includes ~$1m of synergies and $(0.4)m adverse Methven related fx impact

11		¹ Normalised is before $(0.4)m in significant items (after tax) relating to integration costs associated
	with the acquisition of Methven
		² Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018

Overview		Financial results		Strategic progress		Outlook		Appendix

Good progress on Methven integration

• Earnings improving (up 50% on 2H FY19)
• • Methven now in growth in New Zealand following three years of decline
  • International growing strongly; UK business growing market share
  • Methven Australia impacted by weak conditions and lapping significant NPD1 pipeline fill in 1H FY19
• Executing increased Methven product ranging in Australia
• Full bathroom offering commenced in Asia but delayed in the United Kingdom due to new regulatory requirements
• Cost synergies ahead of target - $1m in 1H FY20 and now expect at least NZ$6m by FY21
• Integrated sales' structures in Australia and New Zealand supported by
  Group functions

12

¹ New product development

Overview

Financial results

Strategic progress

Outlook

Appendix

Cash generation remains strong

Continuing operations¹ (pro forma) includes Methven in 1H FY20 and1H FY19

	Pro Forma
Cash flow from Continuing	1H FY19	1H FY20
Operations A$M	Includ es M et hven	Includ es M et hven
EBITDA	52.6	48.1
Net movement in Working Capital	7.3	(4.1)
Other	(3.3)	(1.8)
Cash Flow from Operations	56.6	42.2
Capital Expenditure	(3.9)	(8.2)
Restructuring / Other costs	(2.0)	(0.7)
Net Interest Paid	(3.2)	(4.4)
Tax Paid	(14.2)	(10.4)
Free Cash Flow	33.3	18.5
Discontinued Operations	99.3	0.0
Group Free Cash Flow	132.6	18.5

• Working capital adverse due to higher inventory relating to stock builds associated with the timing of Chinese New Year and the lead up to warehouse consolidations in Australia, and reduced debtors and payables
• Cash conversion ratio from Continuing Operations of 88%²
• Capital expenditure due to: warehouse and office consolidation with Methven; Caroma Smart Command® and IT investment
• FY20 cash restructuring / other costs relate primarily to Methven integration costs
• Discontinued operations include the proceeds on sale from the divestment of the Door & Access Systems' business
• Tax payments have reduced due to a top up payment made 1H FY19

13	¹ Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018
	² Cash Flow from Operations divided by normalised EBITDA

Overview

Financial results

Strategic progress

Outlook

Appendix

Strong financial position maintained

Continuing operations¹ includes Methven from 30 June 2019 but notin prior periods

	Metrics²	30 June	30 June	31 Dec	30 June	31 Dec
	2017	2018	2018	2019	2019
		Exclud es M et hven	Exclud es M et hven	Exclud es M et hven	Includ es M et hven	Includ es M et hven
	Net Debt	79.8	97.7	(7.1)	141.9	156.6
	Leverage Ratio
	Net Debt / EBITDA	0.9	1.1	(0.1)	1.6	1.9
	Interest Cover
	EBITDA / Net Interest	17.1	19.6	26.1	23.5	15.4
	Gearing
	Net Debt / (Net Debt + Equity)	19.9%	22.7%	-1.9%	27.5%	29.9%
	Net Debt
	Borrowings	112.0	125.0	25.0	177.8	185.5
	Bank Guarantees	4.1	1.8	0.8	3.8	4.9
	Cash	(36.4)	(27.9)	(32.9)	(39.6)	(33.8)
	Held for sale cash	-	(1.2)	-	-	-
		79.8	97.7	(7.1)	141.9	156.6

• GWA remains in a strong financial position
• Increased net debt due primarily to the acquisition of Methven in FY19 and in FY20 lower revenue in Australia and higher investment in capex to support growth
• Substantial headroom maintained within $250m banking facility
• • Facilities were refinanced in 1H FY20 with a $210m 3-year facility and a $40m 1-year facility, providing improved flexibility
• Credit metrics remain strong

	¹ Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018
	² Metrics calculated as required for reporting to GWA's syndicated banking group and have not
14	been adjusted for the impact of IFRS 16 Leases. Leverage Ratio is calculated using twelve
months pro forma Methven results and Interest Cover is calculated using Methven results from
	the acquisition date (10 April 2019)

03 Strategic progress

15

Overview		Financial results		Strategic progress		Outlook		Appendix

GWA strategy for growth

Corporate	Priorities

Drivers

Growth

We make life better with superior solutions for water

Build GWA as the most trusted and respected water solutions company

Maximise shareholder value creation - NPAT growth, ROFE, TSR

CUSTOMER FOCUSED		CONSUMER DRIVEN
Add value to customers through superior execution,		Deliver experiences to excite
insights, analytics and processes		consumers and drive revenue
		and market share growth

BUSINESS EFFICIENCY : Simple, effective processes and plans delight consumers and customers

BEST COST : Continuous improvement to support profitability and fund selective reinvestment

GREAT PEOPLE : Continue to build "fit for future" culture, engagement and capability

GWA Operational Measures

Market share, NSV, EBIT, ROFE, DIFOT, NPS, Safety, Engagement

SEGMENTS		CATEGORIES		BRANDS		SOLUTIONS
Build on Commercial
	Leverage sanitary to win all of		Deliver the best water		Lead "smart water
leadership and grow in R&R
	bathrooms and kitchens		experiences		management"

16

Overview		Financial results		Strategic progress		Outlook		Appendix

Caroma Smart Command® generating positive market engagement

Progress

• Strong customer engagement in multiple commercial segments
• Caroma Smart Command® installed in 36 sites across Australia and New Zealand, with solid bank of additional projects in the pipeline for 2H FY20
• 16 sites migrated to the cloud solution. Further migrations planned for 2H FY20. Creates a platform for fee-for-service solution
• Intelligent Shower and Eco Valve on track for launch in Q4 FY20 - completes whole of bathroom solution
• NPD¹ pipeline based on segment and customer needs
• Leveraging Methven geographic footprint for international expansion - China and South East Asia in premium commercial
• Broadening global exposure as naming rights sponsor of the World Plumbing conference in 2019 and Dubai 2020 World Expo
• Leveraging Austrade and NZTE² for lead generation and international support

17

¹ New product development

2 New Zealand Trade and Enterprise

Overview		Financial results		Strategic progress		Outlook		Appendix

We continue to invest behind our core brands

• Continued investment in our core brands enhances our engagement with consumers:
• • Launched Caroma Elvire premium range
  • Extensive media across outdoor, online and TVC¹
  • Continued momentum in Flagship Stores. Increased foot traffic and conversion through targeted events
  • Launched Methven Turoa coloured tapware
  • Launched Nefa II and Fast Flow II valves
  • Launched new shower and tapware ranges in both the UK and Asia; launched sanitaryware in Asia

18	¹ Television commercials

Overview		Financial results		Strategic progress		Outlook		Appendix

Investment in new distribution network enables integration of Methven portfolio, improved customer service and network efficiencies

‒ Consolidated distribution network to four key Distribution Centres in NSW, QLD, VIC and WA

‒ The new network enables one order / single invoicing across the combined portfolio and improved customer service

‒ Distribution footprint decreases while capacity increases by ~10k pallets

‒ Provides the base for improvement in operating efficiencies in FY21 and beyond

19

Overview		Financial results		Strategic progress		Outlook		Appendix

Strategic initiatives focus on generating medium-term revenue growth underpinned by operational discipline

Corporate priority

CUSTOMER FOCUSED

Add value to customers through superior execution, insights, analytics and processes

CONSUMER DRIVEN

Deliver experiences to excite consumers and

drive revenue and market share growth

EFFICIENCY/BEST COST/PEOPLE Simple, effective processes to delight consumers and customers with continuous improvement and great people

Progress made

Continue to:

• strengthen merchant customer relationships via joint business planning and core range extension
• increase collaboration with secondary customers capturing Commercial segment opportunities (Aged Care, Commercial R&R)
• grow Methven in Australia leveraging GWA scale and customer relationships
• convert the pipeline for Caroma Smart Command®
• drive growth in International markets
• Leverage increased investment in Caroma brand initiatives
• Premium product range Caroma Elvire performing ahead of expectations. Drive growth in 2H FY20
• Continue Caroma Cleanflush momentum - 1H FY20 sales up 11% vs pcp
• Continue performance improvement in flagship stores (Sydney, Adelaide)
• Continue to accelerate our $9-12m cost out programme FY19-FY21 in 2H FY20. $3m delivered in 1H FY20 (ahead of target)
• Maintain over delivery of Methven cost synergies - $1m in 1H FY20 and now expect at least NZ$6m by FY21
• Optimise new distribution centres (VIC, QLD, WA) to enhance customer service and improve operating efficiencies in FY21 and beyond

20

Overview		Financial results		Strategic progress		Outlook		Appendix

Continuing to strengthen Water Solutions over the medium-term

A$m	FY15	FY16	FY17	FY18¹	FY19¹ ²
Water Solutions³
Revenue	330.0	342.0	350.4	358.6	381.7
Normalised EBIT	65.5	70.9	74.3	76.2	78.1
EBIT Margin % (Water Solutions)	19.8%	20.7%	21.2%	21.3%	20.5%

1H FY19¹ ² 1H FY20¹ ²

1. 206.3

1. 38.1

21.4% 18.5%

		¹ Restatement of Net Sales to comply with IFRS 15. Periods before this are not restated
21		2	Restatement of EBIT to include IFRS 16 impact FY19 onwards
	3	Water Solutions includes the former B&K business, former Corporate, and Methven since purchased
			on 10 April 2019

04 Summary and outlook

22

Overview		Financial results		Strategic progress		Outlook		Appendix

FY20 outlook - Guidance maintained: Normalised¹ EBIT $80-85m

Key area

Market Activity

GWA well positioned to deliver revenue and earnings growth as market recovers

FY20 earnings weighted to 2H -

FY20 guidance maintained

FY20 commentary

• Trading conditions to remain challenging in the short term, however forward indicators moving back into balance will provide a solid platform for growth
• Recent capital city house price increases, improving existing housing turnover and early signs of improving housing construction activity support anticipated improvement in residential market conditions in early FY21
• Commercial activity (new build, R&R) expected to remain solid across the eastern seaboard - order book remains strong and in growth
• Enhanced revenue opportunities as market recovers:
• • Caroma Smart Command®
  • Growth in core Commercial Segments (Aged Care, Commercial R&R)
  • Broader Methven ranging in merchants
  • New Product Development targeting Residential R&R and Aged Care
• Further growth in international markets (Asia, UK), leveraging Methven's presence
• Further scope for cost savings / Methven synergies supports margin maintenance and capacity for continued investment in growth initiatives
• Realigned cost base and network efficiencies provide increased operating leverage and enable continued investment in growth initiatives through the cycle
• Earnings in 2H FY20 expected to be higher than 1H FY20:
• • No material impact expected in FY20 from Coronavirus
  • Price increases implemented 1 November 2019 will benefit in 2H FY20
  • Acceleration of Methven cost synergies, expecting $3m in FY20
  • Acceleration of supply chain and SG&A savings, expecting $3m in 2H FY20
  • Group Normalised¹ FY20 EBIT expected to be within range of $80-85m

23	¹ Normalised EBIT is excluding Significant items

Superior Solutions for Water

Results

Presentation

Half Year ended 31 December 2019

17 February 2020

05 Appendix

25

Overview		Financial results		Strategic progress		Outlook		Appendix

FY20 Key Assumptions

• D&A (depreciation and amortisation) is expected to be ~$7-8m excluding the impact of IFRS
• 1. Including the impact of IFRS 16 D&A is expected to be ~$20-21m. (refer slide 27 for reconciliation)
• Interest costs expected to be ~$6-7m excluding lease interest. Including the impact of IFRS
• 1. lease costs are expected to be ~$8-9m. (refer slide 27 for reconciliation)
• ~$5m F/X on-costs expected to be offset by cost savings and price
• Tax rate on continuing normalised business of ~29-30%
• Working capital to remain broadly similar to FY19 proforma (including Methven)
• Capex of ~$12-14m due to: investment in Caroma Smart Command®; investment in NPD; cost out initiatives; warehouse racking and office fit-outs
• $6m savings in FY20 from the $9-12m cost out programme by FY21
• $3m savings from integration of Methven in FY20

26

Overview		Financial results		Strategic progress		Outlook		Appendix

IFRS 16 Leases - impact on key metrics

Continuing operations¹ (pro forma) includes Methven in 1H FY20 and1H FY19

			1H FY19				1H FY20
	A$m		Includes M ethven				Includes M ethven
Previously	Restated	IFRS 16		Pre IFRS 16	Post IFRS 16	IFRS 16
		disclosed		Adjustment		Adjustment	Adjustment	Adjustment
	Revenue	233.1	233.1	0.0		206.3	206.3	0.0
	EBIT (Normalised²)	42.8	43.3	0.6		37.5	38.1	0.6
	EBIT Margin %	18.3%	18.6%	0.2pcp		18.2%	18.5%	0.3pcp
	Depreciation & amortisation	3.7	9.2	5.6		3.6	10.0	6.4
	EBITDA (Normalised²)	46.4	52.6	6.1		41.1	48.1	7.0
	Net Interest expense	1.8	3.0	1.2		2.9	4.2	1.2
	NPAT	78.1	77.7	(0.4)		24.0	23.6	(0.4)
	NPAT (Normalised²)	28.8	28.4	(0.4)		24.4	24.0	(0.4)
	Operating Cash Flow	51.5	57.6	6.1		35.2	42.2	7.0
	ROFE %	19.3%	19.4%	0.1pcp		15.3%	15.6%	0.3pcp

¹ Continuing Operations excludes the Door & Access Systems' business which was sold on 3 July 2018

27² Normalised is before $(0.4)m in significant items (after tax) relating to integration costs associated with the acquisition of Methven

Overview		Financial results		Strategic progress		Outlook		Appendix

Reconciliation - Reported NPAT to Normalised¹ NPAT

Continuing Operations² includes Methven in 1H FY20 but not1H FY19

			1H FY19			1H FY20
	A$m		Excludes M ethven			Includes M ethven
	Continuing	Discont'd	Group	Continuing	Discont'd	Group
		Operations²	Operations	Total³	Operations²	Operations	Total³
	Normalised¹
	REVENUE	182.6	0.0	182.6	206.3	0.0	206.3
	EBITDA	46.1	0.0	46.1	48.1	0.0	48.1
	EBIT	39.1	0.0	39.1	38.1	0.0	38.1
	NPAT	26.2	0.0	26.2	24.0	0.0	24.0
	EPS (cents)	9.4	19.3	28.6	9.1	0.0	9.1
	Significant Items
	Pre Tax	(1.5)	50.1	48.6	(0.6)	0.0	(0.6)
	Post Tax	(1.5)	50.8	49.3	(0.4)	0.0	(0.4)
	Reported
	REVENUE	182.6	0.0	182.6	206.3	0.0	206.3
	EBITDA	44.6	50.1	94.7	47.4	0.0	47.4
	EBIT	37.6	50.1	87.7	37.5	0.0	37.5
	NPAT	24.7	50.8	75.5	23.6	0.0	23.6
	EPS (cents)	9.4	19.3	28.6	8.9	0.0	8.9

• Normalised is before Significant items. Significant items relate to profit on sale of the Door & Access Systems business and the transaction and integration costs associated with the acquisition of Methven
  ² Continuing operations exclude the Door & Access Systems' business which was sold on 3 July 2018
  ³ Group Normalised NPAT, Reported EBIT and Reported NPAT will not, in all cases, add across the page due to rounding. The Group results are consistent with the 4D and Financial Report

28

Overview

Financial results

Strategic progress

Outlook

Appendix

Increased presence in R&R segment and improved geographic diversification provide resilience through the cycle

Segment

Resi	Category	Valves
18%
	Basins, Sinks,	1%
	Tubs & Baths
	18%

Resi	Multi-Resi	Sanitary
R&R	10%	ware
		43%
R&R
59%
Comm	Commercial	Taps &
R&R²
	13%	Showers
		38%

Geography		Brand
United Kingdom	Asia	Other
7%	1%	18%
New Zealand
13%		Dorf
		3%

Methven

13%Caroma

59%

	Australia	Clark
	7%
	79%
29	¹ Percentages are of total GWA revenue and assume 12 months Methven contribution

² Commercial R&R in Australia only

Overview		Financial results		Strategic progress		Outlook		Appendix

Solid history of increasing dividends paid to shareholders

Historical dividends paid (cents)

20.0
18.0
16.0
									1.0
14.0
																	9.5		9.5
12.0										8.0				9.0
10.0
8.0
6.0
																	8.5		9.0
4.0										7.0				7.5						8.0
	5.5				6.0
2.0
-		-				-
		FY14			FY15				FY16				FY17				FY18	FY19		FY20
									Special			Final ordinary			Interim ordinary

30

Overview		Financial results		Strategic progress		Outlook		Appendix

Existing housing turnover has declined significantly in FY19 but is beginning to show signs of recovery

	70
	60
	50
month	40
'000s per	30
20
	10
	0
	95	97	99	01	03	05	07	09	11	13	15	17	19

Number of dwelling sales, Australia

Linear (Number of dwelling sales, Australia)

31	Source: ANZ

Overview		Financial results		Strategic progress		Outlook		Appendix

Number of loans for construction and purchase of new dwellings

Number of loans, per month

8,500

8,000

7,500

7,000

6,500

6,000

5,500

5,000

32	Source: ABS

Overview		Financial results		Strategic progress		Outlook		Appendix

Annual net overseas migration & Australian population growth

Annual net overseas migration & Australian population growth

350.0	2.5
300.0
	2.0
250.0
200.0	1.5
150.0	1.0
100.0
	0.5
50.0
0.0	0.0

Annual net overseas migration ('000s)		Australian population growth (%)	Linear (Annual net overseas migration ('000s))

33	Source: ABS

Superior Solutions for Water

Results

Presentation

Half Year ended 31 December 2019

17 February 2020