Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Investor Day (September 2019)
90 slides from Reliance Worldwide's investor day presentation, Sep 19, 2019
Slide 1: Investor day presentation slides
ASX Announcement For personal use only 19 September 2019 Investor day presentation slides Reliance Worldwide Corporation Limited (ASX: RWC) advises that members of the investment community met with members of RWC’s senior management team and toured the manufacturing facilities in Cullman, Alabama, U
Slide 2: Investor Day September 2019
For personal use only Investor Day September 2019
Slide 3: Important notice
Important notice For personal use only This presentation contains general information about the activities of Reliance Worldwide Corporation Limited and its operating businesses at the date of presentation (18 September 2019). It is information given in summary form and does not purport to be comple
Slide 4: Welcome and Objectives
For personal use only Investor Day Welcome and Objectives Wednesday September 18, 2019
Slide 5: Agenda
Agenda For personal use only Welcome and Safety 8:00am – 8:15am Heath Sharp, Rodney Maronay Strategy Overview 8:15am – 9:15am Heath Sharp, Gerry Bollman, Kal Nanji StreamLabs Product Showcase 9:15am – 10:00am Heath Sharp, Dixon Thuston, Sam Elia End User Markets 10:00am – 10:15am Heath Sharp Break 1
Slide 6: Objectives
Objectives Key insights that you will acquire today For personal use only Clarity on our vision for growth driven by talented people, shared and consistent values, and a compelling value proposition An understanding of how we leverage our growth platforms that include demand generation, distribution
Slide 7: Strategy Review
For personal use only Investor Day Strategy Review Wednesday September 18, 2019
Slide 8: Our strategy summary sets out our priorities
Our strategy summary sets out our priorities A clear growth plan focused on key customer segments underpinned by our values For personal use only 7
Slide 9: Our values represent the foundation of our strategy for success
Our values represent the foundation of our strategy for success For personal use only 8
Slide 10: Values inform our talent initiatives
Values inform our talent initiatives For personal use only Driving programs across the group Training Implementing leadership and supervisor development programs Utilize E-Learning courses for all employee compliance training and new course development Succession planning Identifying high pote
Slide 11: Values drive our commitment to social responsibility
Values drive our commitment to social responsibility For personal use only Focused on enhancing shareholder returns through sustainable and responsible practices Diversity and inclusion initiatives underway Sustainable product development efforts Proactive recycling and waste management Ongo
Slide 12: Values led us to unite our family of brands
Values led us to unite our family of brands A rebranding journey to live up to the brand and connect our people For personal use only 11
Slide 13: Branding challenge
Branding challenge Our ever-growing portfolio requires consistency and impact For personal use only Our brands Our brands post pre 2017 2017 12 12
Slide 14: One brand family
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Slide 15: Powerful branding…impactful execution
Powerful branding…impactful execution Aligned with our long-term objectives and brand values For personal use only 14
Slide 16: Shared brand values engage our greatest asset
Shared brand values engage our greatest asset Firmly aligned with the brand, our values are engaging and connecting our people For personal use only 15
Slide 17: Our Priorities And Our Growth Plan
For personal use only Our Priorities And Our Growth Plan
Slide 18: Our strategic priorities
Our strategic priorities For personal use only 17
Slide 19: Our strategic priorities
Our strategic priorities Enabling specific initiatives to accelerate, expand and access For personal use only Goals Example Activity Expanding shelf space in distribution in Achieve profitable growth in the Americas core, repair and maintenance Driving solution sales in the UK with JG markets in
Slide 20: Our growth plan
Our growth plan Using key levers across the organization to drive sustainable and impactful growth For personal use only 19
Slide 21: RWC growth drivers
RWC growth drivers Focused activity supporting growth drivers are enabled by strong core competencies For personal use only Goals Key initiatives Own the project Combining our portfolio of brands, Convert plumbers to our smart with a family ensuring ease of compatibility, solutions and gain loyalty
Slide 22: Growth enablers – innovation
Growth enablers – innovation Development embedded in user insights to fill pipeline for current and future growth For personal use only RWC horizon planning Horizon 3 New 1. Empathize 5. Launch Value Who is the user? How do we Horizon 2 What is their issue? commercialize? Emerging Horizon 1 RWC Core
Slide 23: Growth enablers – M&A
Growth enablers – M&A Acquisitions will continue to be an important complement to organic growth efforts For personal use only Historical Growth Driving Rationale Approach RWC has a successful track record of Given underlying market growth Value Creation Strategy acquiring and integrating rates,
Slide 24: Product, the building blocks
Product, the building blocks Innovation and M&A contribute to the fundamental building blocks of growth For personal use only Accessories 23
Slide 25: Revenue by category
Revenue by category While PTC fittings are a large part of our business, we have a growing, diverse For personal use only range of related solutions transforming productivity and efficiency for our end users 9% 12% Brass PTC 11% Plastic PTC 12% Fittings Non-PTC FY19 Gross Pipe Revenue by category Va
Slide 26: Fittings provide a strong foundation
Fittings provide a strong foundation A variety of fittings solutions that deliver efficiency and reliability available through For personal use only a vast network of outlets across markets and channels Available across Americas, UK, and Australia #1 position in Americas Brass PTC #1 position in
Slide 27: Fittings provide a strong foundation
Fittings provide a strong foundation The fittings category, with an overall market growth of 4-5%, contribute to a solid and For personal use only growing foundation Market Dynamics Applications Pipeline Organic Growth Margins A$1B global Service and repair Extending size range Brass PTC marke
Slide 28: Growing category diversification
Growing category diversification RWC has built a complete portfolio of solutions with top market positions - all aligned with For personal use only the SharkBite value proposition – ease of use, efficiency, labor savings, and availability PEX pipe available across global regions Top 3 producer in
Slide 29: Growing category diversification
Growing category diversification Portfolio of relevant product solutions in attractive and growing end use markets For personal use only to help our end users deliver, control and optimize fluids in their projects Market Dynamics Applications Pipeline Organic Growth Margins A$10B + global Essent
Slide 30: StreamLabs
For personal use only StreamLabs IOT platform vision, product, and technology
Slide 31: RWC connected solution vision
RWC connected solution vision RWC IoT (Internet of Things) platform enables development of connected products For personal use only across major categories firmly positioning RWC at leading edge Municipal Water Ecosystem of Solutions Enabled by RWC IOT Platform Condition information and user action
Slide 32: StreamLabs Product
For personal use only StreamLabs Product Connected water leak detection product market and opportunity 31
Slide 33: StreamLabs: Solutions for every homeowner and application
StreamLabs Solutions for every homeowner and application For personal use only Monitor Control Fast no plumber install Auto or manual water shutoff Whole home water monitoring Temp & pressure monitoring Learning leak alerts Drip detect functionality Smart home integrations Learning l
Slide 34: Market dynamics
Market dynamics The potential market for leak detection/home protection is extremely attractive For personal use only The category is largely being driven by the insurance industry which has authority approaching a regulatory agency 0 800K 3.6M 37% Entrenched competitors to US homes that will file a
Slide 35: Target customer
Target customer StreamLabs fits with RWC’s targets: customers, segments, markets, solutions For personal use only RWC US existing market segments Core repair, maintenance and remodel Which Residential and commercial new construction OEM 9% segments Water heater OEMs we target Specialty solutio
Slide 36: Commercial approach
Commercial approach Go-to-market plan: phased approach to market For personal use only Leak claim homeowners, one touch consumers, several hundred thousand people per year that 1 2 3 4 have had a leak claim and are desperate for a solution Plumbing and HVAC contractors that incentivize their wor
Slide 37: StreamLabs summary
StreamLabs summary Ready for a new and growing market For personal use only RWC has a robust product offering in a growing market with no entrenched competitors, with other large respected plumbing companies pushing the market Strong platform that sets the foundation for growth and expansion of
Slide 38: StreamLabs Technology
For personal use only StreamLabs Technology Scalable and flexible platform to leverage across our portfolio 37
Slide 39: Born in the serverless cloud
StreamLabs Born in the “serverless” cloud For personal use only 1960 2005 2015+ 2016 CORPORATE AWS AWS Platform DATA CENTER CLOUD “SERVERLESS” CLOUD architecture Engineering resources required 38
Slide 40: Platform Overview
StreamLabs Platform Overview For personal use only Hardware Backend Apps Serverless Components StreamLabs Monitor StreamLabs Database Gateway Compute App StreamLabs Third-Party Control Apps 39
Slide 41: Modular by design
StreamLabs Modular by design For personal use only StreamLabs Wi-Fi module StreamLabs Monitor Water filter StreamLabs Control Water heater Underfloor heating Thermostatic valve 40
Slide 42: One App…..countless possibilities
StreamLabs One App…..countless possibilities. For personal use only ! 41
Slide 43: End Use Market and Regional Review
For personal use only Investor Day End Use Market and Regional Review Wednesday September 18, 2019
Slide 44: Our customers
For personal use only Our customers
Slide 45: End use market focus
End use market focus Product development and innovation driven by robust understanding of For personal use only end use market challenges; bundled solutions aimed at target end users RWC Product Categories RWC Target Contractor End Users Fittings Category Pipe Category Valves Category Integrated Flu
Slide 46: Solutions for the built environment
Solutions for the built environment Wide ranging applications across multiple segments drive our future growth For personal use only Cygnus Homes, Tru by Hilton, Duxford, UK Idaho, US SharkBite® push-to-connect Designed to reduce fittings reduced installation installation time and improve time by 75
Slide 47: EMEA Review
For personal use only EMEA Review 48
Slide 48: Agenda
Agenda For personal use only 1. EMEA business snapshot 2. Market update 3. Growth initiatives 4. Talent 5. Operations 6. Integration update 49
Slide 49: RWC EMEA snapshot
RWC EMEA snapshot Exceptionally strong brands in a diversified set of markets, products and geographies For personal use only Category Mix - UK Category Mix - Europe Brands Valves A$m 360.9 Fluid Tech Other Brass PTC Plastic PTC Net Sales1 Pipe Integrated Installation Managing Solutions Pipe A$m 109
Slide 50: EMEA snapshot: products and customers
EMEA snapshot: products and customers RWC’s stronghold in UK plumbing and heating market is similar to the Americas For personal use only whereas continental Europe is focused on OEMs in FluidTech markets Channel Mix1 Example customers Representative products Automotive Other OEM Cold water UK Whole
Slide 51: EMEA market update
EMEA market update Short-term outlook clouded by economic and political uncertainty, but For personal use only long-term fundamentals remain strong Short term macro trends Long term fundamentals strong Brexit introduces significant uncertainty Long term RMI outlook is positive with low UK 2020
Slide 52: Brexit update and planning
Brexit update and planning RWC continues to evaluate potential implications of Brexit and has For personal use only executed several initiatives to mitigate impact to the business Situation 31st October – UK due to leave European Union UK & EU strongly disagree on key aspects of a potential ‘wit
Slide 53: Our growth priorities
Our growth priorities Enabling specific initiatives in UK and Europe to accelerate, expand and access For personal use only Goals EMEA plans UK: expand share and offering in core market Achieve profitable growth in through continued focus on Speedfit range, core, repair and maintenance underfloor
Slide 54: Growth initiative – FluidTech markets
Growth initiative – FluidTech markets Attractive market opportunity that will drive growth through greater focus on the For personal use only right end use segments, product fit, and resource allocation Focus Area Markets End Use Plan Drinks and Dispense and Pure Water Prioritize NPD and fill prod
Slide 55: Talent and organization
Talent and organization Strengthened leadership team and UK organizational structure to better For personal use only support growth and collaboration New Hire / New function / Additional keys to revised org design EMEA CEO leadership and Edwin de Wolf structural changes: Leverage strong roster of
Slide 56: RWC EMEA operations snapshot
RWC EMEA operations snapshot Robust operations footprint producing over 1B finished components annually For personal use only Key performance objectives UK Manufacturing Footprint LAUNCESTON 33k sq ft manufacturing Continued improvement on HSE with focus on leadership Molding, welding & assembly
Slide 57: EMEA integration update
EMEA integration update Significant integration effort in FY19 and continuing into FY20 to For personal use only accelerate growth and drive synergy realization Scale of acquisition Completed in FY19 Continued efforts in FY20+ Innovative leader in plastic push to Consolidated legacy RWC into JG
Slide 58: Americas Review
For personal use only Americas Review 59
Slide 59: Agenda
Agenda For personal use only 1. Americas business snapshot 2. Market update 3. Growth initiatives 4. Talent 5. Operations 6. Integration update 60
Slide 60: RWC Americas snapshot
RWC Americas snapshot Well positioned brands across a diverse product range serving multiple segments For personal use only Category Mix Channel Mix Brands A$m 653.9 Hardware Plastic Net Sales1 Brass PTC PTC Wholesale OEM Export Fittings Non-PTC A$m 105.3 Adjusted Other Pipe EBITDA2 Retail Integrate
Slide 61: Americas market update
Americas market update Conditions that drive demand for our solutions are positive overall and For personal use only across key segments Overall Core segments New construction Americas economy is relatively Repair and remodel activity Weakening demand with healthy and large slower but positive inher
Slide 62: Americas growth plan
Americas growth plan Leverage innovation, strength of brand and product offering For personal use only across distribution network to expand market share Goals Highlighted initiatives Own the project Investment in commercial end market selling and marketing with a basket capabilities designed to p
Slide 63: Growth initiative - commercial market
Growth initiative - commercial market Attractive market opportunity that will require investment in product and sales talent For personal use only Potential revenue opportunity RWC addressable products by construction phase per project 1 2 3 4 5 US$155k Accy. 5 Story, multi-building, Firestopping (c
Slide 64: Growth initiative – residential service and repair
Growth initiative – residential service and repair Water heater replacement involves multiple, high value, RWC solutions For personal use only Market Opportunity for RWC Potential water heater replacement value to RWC More than 7.5 million water heaters are replaced annually in the US RWC produc
Slide 65: Growth initiative – leveraging reach
Growth initiative – leveraging reach RWC Americas well positioned to Pro customer with changing For personal use only buying preferences Pro buying preferences are changing Location, availability and convenience drive purchase habits1 Pros generally avoid private label rough plumbing products1 K
Slide 66: Talent and organization
Talent and organization Organizational capability enhancement firmly aligned For personal use only with key Americas growth drivers Commercial market Commercial sales resource center resources Demand… Enhance coordination Support Reach… Support connected and efficiency of commercialization and devic
Slide 67: RWC Americas operations snapshot
RWC Americas operations snapshot Growth supportive operations and distribution facilities For personal use only Key performance objectives US Manufacturing Footprint CULLMAN, AL 395k sq ft manufacturing Creating a safety focused culture Implementing Sales & Operating Planning (S&OP) Produces/A
Slide 68: Americas integration update
Americas integration update Primary integration efforts completed in FY19 with FY20 focused on For personal use only accelerating growth Completed in FY19 Continued efforts in FY20 Consolidated legacy JG USA infrastructure into Drive growth in FluidTech end markets for John RWC Americas; transit
Slide 69: Operations Review
For personal use only Investor Day Operations Review Wednesday September 18, 2019
Slide 70: Agenda
Agenda For personal use only 1. Safety 2. Lean Management 3. Continuous Improvement 4. Procurement 5. Strategic Topics 71
Slide 71: Safety: Global Improvement Strategy
For personal use only Safety Global Improvement Strategy 72
Slide 72: Injury Rate
Injury Rate 52% reduction in injury rate in FY19 For personal use only Group Lost Time Rate 3.5 Reportable Rate 3 Reportable Target 2.5 2 1.5 1 0.5 0 FY18 FY19 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 73 Note: Vertical axis measures Incident Rate (Rolling 12 months sum of injuries x 100 / avg
Slide 73: Safety Strategy
Safety Strategy Build a world-class safety culture to drive performance For personal use only Safety culture evolution Goals Zero injuries INJURY RATE Safety as a value Employee-led safety Safety by natural Management Personal knowledge, Care for others Continuous culture instinct co
Slide 74: Safety Foundation
Safety Foundation Emphasis on leadership, employee engagement, and key For personal use only policies/procedures - Strong top leadership priority Incident reporting Leadership - Increase ownership from operations managers / supervisors (OSHA training, goals & objectives, accountability) Fatality - I
Slide 75: FY20 safety objectives
FY20 safety objectives Continued injury reduction with actions to evolve the safety culture For personal use only Safety starts with people… creating awareness… and delivering results 10% reduction in injury rate Deploy safety leadership training Implement near miss/hazard reporting – leading
Slide 76: Lean Management: KPIs and Visual Factory
For personal use only Lean Management KPIs and Visual Factory 77
Slide 77: Operations KPIs
Operations KPIs Developing global metrics and approach to driving continuous improvement For personal use only Plant operations metrics Safety, quality, delivery and cost Weekly/monthly tool for operations management to drive performance Scorecard Analysis / Actions Emphasis on performance vs. m
Slide 78: Daily Lean management
Daily Lean management Connecting Ops KPIs with shop-floor visual management and accountability For personal use only Shop floor visual factory Shift/daily visual tool for short-interval accountability Cullman and control Operator ownership for achieving KPI targets, reporting results, and raisin
Slide 79: Continuous Improvement
For personal use only Continuous Improvement Driving cost out and Operations efficiency 80
Slide 80: Continuous Improvement (CI)
Continuous Improvement (CI) Building CI culture and processes For personal use only Foundation Key focus areas Procurement The right leadership to build the culture and implement the process New VP Procurement on-boarded Supporting regional execution and implementing new Metrics and visual f
Slide 81: Global Procurement
Global Procurement Driving cost savings and implementing procurement processes For personal use only Procurement Strategy Implementation Approach HIGH 1. Analyze 2. Prioritize Leverage Critical Spend cube with relevant Identify key projects Supplier relationship details Lowest landed cost Focu
Slide 82: Cost savings project tracking
Cost savings project tracking Project execution and visibility to results For personal use only Idea Pipeline Project Tracking Financial Reporting Project ideas developed with Tracking templates underway Consolidation of project savings estimated financial impact to summarize project, savings
Slide 83: Supply Chain process improvement
Supply Chain process improvement Enabled by S&OP For personal use only Need for Sales and Operations Planning (S&OP) process to drive efficiency through the supply chain Engaged leading third-party consultant to conduct a diagnostic in the Americas and provide recommendations Retained a consul
Slide 84: Long term strategic opportunities
Long term strategic opportunities Driving optimization across the Group For personal use only Make vs. buy (e.g. brass components, flexi hoses) Leverage John Guest tooling and automation expertise across the Group Manufacturing and distribution footprint strategy Alternate manufacturing tech
Slide 85: Q&A and Wrap Up
For personal use only Investor Day Q&A and Wrap Up Wednesday September 18, 2019
Slide 86: In Summary
In Summary For personal use only The fundamentals of our business are stronger than ever The diversity of our business – across geographies, The strength of, and growth runway for, our core end users, channels to market, products, raw push-to-connect businesses are complemented by materials – both r
Slide 87: For personal use only
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Slide 88: Solutions to Shape the World
For personal use only Solutions to Shape the World’
Slide 89: Appendix
For personal use only Appendix 90
Slide 90: RWC Group snapshot
RWC Group snapshot Global operations across the Americas, EMEA and APAC For personal use only Net Sales1 Managing Operating Innovation $1,104 15 24 5 Million Manufacturing Distribution R&D AUD Facilities Centers Facilities Employing Holding Manufacturing Distributing 2,300+ 900+ 22,000+ 18 Employees