Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Macquarie Australia Conference 2021
26 slides from Reliance Worldwide's conference presentation, May 3, 2021
Slide 1: Presentation at Macquarie Australia Conference
ASX Announcement For personal use only 3 May 2021 Presentation at Macquarie Australia Conference Attached is a copy of a presentation being given by Reliance Worldwide Corporation Limited’s Group Chief Executive Officer and Group Chief Financial Officer at the Macquarie Australia Conference on Tuesd
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 4 May 2021 Heath Sharp Chief Executive Officer Andrew Johnson Chief Financial Officer RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 3: Important Notice
Important Notice For personal use only This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (4 May 2021). It is information given in summary form and does not purport to be complete. The presentation is not an offer or i
Slide 4: Agenda
For personal use only Agenda 1. COVID-19: the past year in review 4 2. Group Strategy Overview 10 3. Regional Strategies 13 4. Capital Management 21 5. Summary 23 3
Slide 5: COVID-19 impacts: the past year in review
For personal use only COVID-19 impacts: the past year in review 4
Slide 6: One year on from COVID-19
One year on from COVID-19 For personal use only While early impacts were negative, from 1Q FY21 onwards all regions experienced sales growth driven by increased expenditure on repair and remodel activity RWC Quarterly Revenues A$m 350 300 250 200 150 100 Q4 Q1 Q2 Q3 FY19 FY20 FY21 5
Slide 7: Strong operating cash flows delivered during COVID-19
Strong operating cash flows delivered during COVID-19 For personal use only Cash generation has enabled substantial reduction in net debt and leverage $m Cash Flow from $m Net Debt Net Debt/EBITDA (times) Operations 450.0 160 155.6 394.7 1.7 145.5 400.0 1.57 140 350.0 1.5 120 300.0 1.3 100 250.0 226
Slide 8: Segment results: Americas
Segment results: Americas For personal use only Strongest performing region has benefitted from pronounced uplift in R&R activity Americas Quarterly Revenues US$m1 US sales have been boosted by a surge in residential repair and remodel activity 150 Sales in retail and hardware channels of core p
Slide 9: Segment results: Asia Pacific
Segment results: Asia Pacific For personal use only Growth driven by increased R&R activity and new housing construction in Australia APAC Quarterly Revenues A$m1 70 External sales growth reflects stronger Australian new housing construction and repair and remodel markets 60 Increased Australian
Slide 10: Segment results: EMEA
Segment results: EMEA For personal use only Strong sales recovery post COVID-19 lock down Sales volumes recovered in July and August following easing of COVID-19 government restrictions EMEA Quarterly Revenues GBPm1 60 Improved sales activity driven by pent-up demand following 50 the COVID-19 lo
Slide 11: Strategy Overview
For personal use only Strategy Overview 10
Slide 12: RWC strategy summary
RWC strategy summary For personal use only Creating Value through Product Leadership Create, make and deliver plumbing products that are the first choice for users. Solutions for the end-user Distributor Relationships Operational Excellence Smart product solutions that improve Increasing value for t
Slide 13: End Use by Region
End Use by Region For personal use only Core RMI market represents significant share of global end use segments 12 Note* - FluidTech segment includes water treatment, drinks and dispense, air and pneumatics, and blown fiber applications; Segment splits based on Group FY20 net external sales
Slide 14: Regional Strategies
For personal use only Regional Strategies 13
Slide 15: Americas: stable historical growth and key fundamentals support core repair segment
Americas: stable historical growth and key fundamentals For personal use only support core repair segment Long term market growth of 2% to 3% annually Highly Correlated Historical Category Key Driving Fundamentals Indicators for RMI Focused Metrics Non- Increasing Existing Home Kitchen and Median Ag
Slide 16: Americas growth plan
Americas growth plan For personal use only Utilize strength of brand, product offering and focused innovation approach across distribution network to expand market share Goals Representative initiatives Commercial end market selling investment Own the Extend brands to new categories Demand… proj
Slide 17: US Growth Estimate – Potential Upside
US Growth Estimate – Potential Upside For personal use only In any given period, targeted base business growth rate with upside from specific customer and product initiatives Variable Variable 1% to 2% 3% to 5% 2% to 3% Market Growth Above Market Growth Base Business Initiatives Potential Growth Bas
Slide 18: EMEA strategy
EMEA strategy For personal use only Enabling specific initiatives in UK and Europe to accelerate, expand and access Key underlying drivers UK Continental Europe Expand basket for Goals Plans Goals Plans existing end users with focus on driving P&H RMI: expand share and FluidTech: further develop
Slide 19: UK Growth Estimate – Potential Upside
UK Growth Estimate – Potential Upside For personal use only In any given period, targeted base business growth rate with upside from specific customer and product initiatives Variable Variable 1% to 2% 3% to 6% 1% to 2% 1% to 2% Market Growth Price Above Market Growth Base Business Initiatives Poten
Slide 20: APAC: Australian Core Growth Initiatives
APAC: Australian Core Growth Initiatives For personal use only Evolving market conditions and new opportunities drive our growth in our core market End users and channels What We Deliver Value Creation Wholesale Full Wholesaler support package including training and full customer care service We s
Slide 21: APAC growth strategies and priorities
APAC growth strategies and priorities For personal use only Driving core product initiatives to serve existing markets and emerging opportunities Goals APAC plans Achieve profitable growth in Australia/New Zealand: expand share core, new build markets in and offering in core market piping Australi
Slide 22: Capital Management
For personal use only Capital Management 21
Slide 23: RWC's Capital Management approach
RWC’s Capital Management approach For personal use only Capital management approach aims to minimise the cost of capital and ensure ongoing access to funding to meet future requirements Strong Financial Value creation Capital management Focus Improving long term Organic Capital Capital Consistent Ca
Slide 24: Summary
For personal use only Summary 23
Slide 25: Summary
Summary For personal use only RWC is well positioned for future growth and the resilience of the business has been demonstrated through the COVID-19 pandemic RWC is focused on creating value through product leadership • Solutions for the end-user: improving contractor productivity, empowering the
Slide 26: Q&A
For personal use only Q&A
Reliance Worldwide — Macquarie Australia Conference 2021 on 6ix