Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — FY2017 Earnings Presentation
28 slides from Reliance Worldwide's earnings presentation, Aug 28, 2017
Slide 1: FY2017 Results Presentation
RELIANCE WORLDWIDE CORPORATION LIMITED $& 1 Z Z Z UZ FFRP FY2017 RESULTS PRESENTATION 28 August 2017
Slide 2: Important notice
Important notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (28 August 2017). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for subs
Slide 3: Agenda
Agenda 1. Highlights 3 2. About RWC 7 3. Financial performance 10 4. Strategy 18 5. New market opportunities 22 6. Outlook 25 Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 2
Slide 4: 1. Highlights
1. Highlights Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 3
Slide 5: FY2017 achievements
FY2017 achievements Exceeded Prospectus Forecasts for revenue, EBITDA, EBIT and NPAT Continued strong sales growth for core SharkBite PTC fittings and accessories in the Americas Phase 1 rollout to Lowe’s stores completed, expanding USA retail distribution network Strong sales growth to The
Slide 6: FY2017 financial highlights
FY2017 financial highlights Net sales EBITDA NPAT $601.7 million $120.7 million $65.6 million +13% growth vs PF FY20161 (+17% on a constant currency +22% growth vs PF FY20161 +26% growth vs PF FY20161 basis) Final dividend Strong net sales Strong balance sheet declared of 3 cps growth fr
Slide 7: Continuing RWC's long-term track record of strong growth
Continuing RWC’s long-term track record of strong growth RWC historical net sales growth, constant currency basis1 (A$m) 602 514 477 441 344 360 365 308 247 263 198 FY07A FY08A FY09A FY10A FY11A FY12A FY13A FY14A FY15A FY16A FY17A Note 1: Period from FY2007 to FY2017. Pro forma net sales calculated
Slide 8: 2. About RWC
2. About RWC Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 7
Slide 9: RWC is a leader in the design, manufacture and supply of water flow and control products
RWC is a leader in the design, manufacture and supply of water flow and control products and solutions for use in the “behind the wall” plumbing industry Leader in high growth brass push-to-connect (“PTC”) fittings category in key geographies Majority of sales to the defensive repair and renovat
Slide 10: Global manufacturing and distribution footprint
Global manufacturing and distribution footprint, with infrastructure in place to support strong future growth Atlanta, Georgia1 Evesham, UK R&D 1 Distribution 2 Vaughan, Ontario Distribution 1 Las Vegas, Nevada Distribution 1 Brisbane, QLD Manufacturing 1 San Diego, California Distribution 1 R&D 1 R
Slide 11: 3. Financial performance
3. Financial performance Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 10
Slide 12: FY2017 results
FY2017 results Commentary Prospectus FY2017 results ahead of Prospectus Forecast Actual Pro forma Variance Forecast Variance June year end (A$m) FY2017 FY20161 (%) FY20172 (%) Achieved a 13% increase in net sales vs PF FY2016 (+17% on a constant currency basis) Net sales 601.7 534.4 + 13% 587.8
Slide 13: Segment results – Americas
Segment results – Americas Actual Pro forma Prospectus Forecast June year end (A$m) FY2017 FY2016 Variance (%) FY2017 Variance (%) Net sales1 435.3 365.0 + 19.3% 397.6 + 9.5% EBITDA 74.6 58.4 + 27.7% 69.3 + 7.6% EBITDA margin 17.1% 16.0% + 110 bps 17.4% - 30 bps Financial commentary Operational comm
Slide 14: Segment results – Asia Pacific
Segment results – Asia Pacific Actual Pro forma Prospectus Forecast June year end (A$m) FY2017 FY2016 Variance (%) FY2017 Variance (%) Net sales1 218.1 201.0 + 8.5% 209.8 + 4.0% EBITDA 47.5 39.3 + 20.9% 45.6 + 4.2% EBITDA margin 21.8% 19.6% + 220 bps 21.7% + 10 bps Financial commentary Operational c
Slide 15: Segment results – EMEA
Segment results – EMEA Actual Pro forma Prospectus Forecast June year end (A$m) FY2017 FY2016 Variance (%) FY2017 Variance (%) Net sales1 50.1 51.1 -2.0% 67.2 - 25.4% EBITDA 0.5 3.8 - 86.8% 5.2 - 90.4% EBITDA margin 1.0% 7.4% - 640 bps 7.7% - 670 bps Financial commentary Operational commentary Seg
Slide 16: Strong free cash flow conversion
Strong free cash flow conversion Prospectus Commentary Actual Pro forma Forecast June year end (A$m) FY2017 FY2016 Variance (%) FY2017 Variance (%) Underlying cash flow performance EBITDA 120.7 99.1 + 22% 117.7 + 3% continues to be strong Change in working capital driven by an Non-cash items in
Slide 17: Capital expenditure
Capital expenditure1 Historical capex (A$m) and capex as % of depreciation Commenced construction of Cullman Phase 1 expansion Property acquisition in Cullman Growth capital expenditure planned Cullman facility completed, increasing brass PTC for FY2019 has been brought fittings production capacity
Slide 18: Balance sheet strength
Balance sheet strength Capitalisation Commentary Strong balance sheet position A$m 30 June 2017 30 June 2016 Net debt increase reflects funding of Holdrite Cash and cash equivalents 35.0 35.6 acquisition, partially offset by use of net operating Total debt 270.4 163.5 cash inflows to repay borro
Slide 19: 4. Strategy
4. Strategy Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 18
Slide 20: Our Direction
Our Direction To profitably revolutionise and disrupt the plumbing industry Why we do what we do by commercialising solutions that make the trade more effective and efficient What we want to The “behind the wall” sector leader become By developing and deploying differentiated capabilities, How we wi
Slide 21: Overview of growth strategy
Overview of growth strategy 6 1 Continued penetration of Industry consolidation core brass PTC fittings and accessories in Americas 5 2 Growth in market for Expansion into new other core products in all geographic markets Growth geographies (valves, pipes, Strategy thermostatics) 4 3 Expansion into
Slide 22: Update on USA retail distribution
Update on USA retail distribution Lowe’s Lowe’s rolling-out full SharkBite Plumbing Solutions range, including PTC fittings and accessories, PEX pipe and crimp fittings Roll-out to 1,700+ Lowe’s stores commenced with approximately half the stores fully stocked by June 2017 Final phase commence
Slide 23: 5. New market opportunities
5. New market opportunities Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 22
Slide 24: Holdrite acquisition overview
Holdrite acquisition overview Overview Sales mix (CY2015, percentages based on USD) Holdrite acquired in 2HFY17 for total consideration of US$92.5 million1 By sales channel By end market North American market leader in providing engineered solutions to solve Retail DIY everyday problems of plumb
Slide 25: Expansion into new end-use applications through innovation and development
Expansion into new end-use applications through innovation and development Innovation and product development a key pillar of RWC’s growth strategy Focus on developing innovative engineered product solution to solve everyday problems for plumbers and contractors and facilitate professional and t
Slide 26: 6. Outlook
6. Outlook Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 25
Slide 27: FY2018 outlook
FY2018 outlook FY2018 forecast EBITDA of between $145 million and $150 million1 Expect continued strong growth in sales of SharkBite PTC fittings and accessories in the Americas Penetration of residential and commercial new construction markets with EvoPEX and Holdrite products in the Americas
Slide 28: Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 27
Reliance Worldwide Corporation Limited INVESTOR PRESENTATION FY2017 RESULTS | PAGE 27