Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Jefferies Asia Forum 2021
33 slides from Reliance Worldwide's conference presentation, Sep 9, 2021
Slide 1: Jefferies Asia Forum
Jefferies Asia Forum 9 September 2021 Heath Sharp Chief Executive Officer Andrew Johnson Chief Financial Officer RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (9 September 2021). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for su
Slide 3: Agenda
Agenda 1. RWC Overview 4 2. Strategy Overview 8 3. Regional Strategies 12 4. FY21 Performance 20 5. FY22 Outlook 24 3
Slide 4: RWC Overview
RWC Overview 4
Slide 5: RWC is a leader in water flow and control products for behind the wall plumbing
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 sector ▪ The leader in brass and plastic push to connect (“PTC”) fittings in key geographies ▪ Majority of sales are to the repair and renovation (“R&R”) e
Slide 6: RWC product portfolio
RWC product portfolio RWC’s brands transform performance and efficiency for plumbing and heating and specialist industries around the world Fittings Pipes Valves Integrated FluidTech Installation Solutions 57% of Net Sales: 12% of Net Sales 12% of Net Sales 9% of Net Sales 10% of Net Sales - Push to
Slide 7: RWC 5-Year Post-IPO Performance History
RWC 5-Year Post-IPO Performance History Net Sales A$m Adjusted EBITDA A$m Adjusted NPAT A$m 5 Year CAGR: 22% 400 5 Year CAGR: 30% 5 Year CAGR: 34% 349 250 1,600 350 212 1,400 1,341 300 277 200 1,162 251 1,200 1,104 250 158 1,000 150 200 130 800 769 151 150 100 602 121 600 79 66 100 400 50 50 200 0 0
Slide 8: Strategy Overview
Strategy Overview 8
Slide 9: Creating Value through Product Leadership
Creating Value through Product Leadership Create and deliver plumbing products that are the first choice for users Solutions for xa butor <w/ Operational the end-user ~.” Relationsh & Excellence Smart product solutions that improve contractor Increasing value for the distributor while providing Prem
Slide 10: End Use by Region
End Use by Region Core RMI market represents significant share of global end use segments 10 Note* - FluidTech segment includes water treatment, drinks and dispense, air and pneumatics, and blown fibre applications; Segment splits based on Group FY20 net external sales
Slide 11: Regional Strategies
Regional Strategies 11
Slide 12: Americas: stable historical growth and key fundamentals support core repair segment
Americas: stable historical growth and key fundamentals 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 Age of Household Discret
Slide 13: Americas growth plan
Americas growth plan Utilise 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… project ▪ Add proven solut
Slide 14: US Growth Estimate – Potential Upside
US Growth Estimate – Potential Upside 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 Based on US core market g
Slide 15: EMEA strategy
EMEA strategy 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 Achieve offering in c
Slide 16: UK Growth Estimate – Potential Upside
UK Growth Estimate – Potential Upside 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 Potential Growth Based on U
Slide 17: APAC: Australian Core Growth Initiatives
APAC: Australian Core Growth Initiatives 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 support the Licensed Pl
Slide 18: APAC growth strategies and priorities
APAC growth strategies and priorities 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 Australia and New Zealand, sys
Slide 19: FY21 Financial Performance
FY21 Financial Performance 19
Slide 20: RWC financial snapshot for year ended June 2021
RWC financial snapshot for year ended 30 June 2021 Net sales Adjusted EBITDA Adjusted NPAT $1,341 million $349.2 million $211.9 million +15% growth overall1 +39% on pcp +63% on pcp +25% in constant currency Operating cash flow Net debt reduction Final dividend $334.3 million $128.3 million 7.0 cps T
Slide 21: Strong operating cash flow performance
Strong operating cash flow performance Cash generated enabled further reduction in net debt and higher FY21 dividend Cash Flow from $m Operations Net Debt/EBITDA Total Dividends Declared ($m) 1.8 120 400 1.67 1.6 102.7 350 334.3 100 1.39 1.4 300 278.3 1.2 80 71.1 250 1.0 200 60 55.3 178.9 0.8 150 0.
Slide 22: FY21 Revenues reflect COVID and US freeze impacts
FY21 Revenues reflect COVID and US freeze impacts Strong growth on a 2-year basis in all regions Americas Quarterly Revenues US$m 150 100 RWC Quarterly Revenues A$m 50 0 350 Q1 Q2 Q3 Q4 Asia Pacific Quarterly Revenues A$m 300 60 250 40 20 200 0 Q1 Q2 Q3 Q4 150 EMEA Quarterly Revenues GBPm 60 100 Q1
Slide 23: RWC’s Capital Management approach
RWC’s Capital Management approach 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 Capital Acquisitions mar
Slide 24: Outlook
Outlook 24
Slide 25: Outlook for FY 2022
Outlook for FY 2022 1 RWC will provide expanded quarterly trading updates from the first quarter of FY2022 PRICES: ▪ Average price rises announced in FY2021 of 6% will mitigate inflation impacts ▪ Price increases will flow through to Sales in FY22, regional variations will reflect different product
Slide 26: Regional outlook for FY 2022
Regional outlook for FY 2022 1 AMERICAS: ▪ COVID brought about a step change in residential remodelling activity in FY21 ▪ Home remodelling activity is expected to remain strong given fundamentals in core US residential segments ▪ FY22 sales (excl freeze) expected to continue to grow at above market
Slide 27: Summary
Summary 27
Slide 28: Summary
Summary RWC is well positioned for future growth and 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, enabling the DIYer • Value for distributo
Slide 29: Q&A
Q&A
Slide 30: Appendix
Appendix 30
Slide 31: RWC Americas snapshot
RWC Americas snapshot (in USD) Well positioned brands across a diverse product range serving multiple segments Category Mix Channel Mix Brands Other Export OEM Fittings $630m USD Plumbing Net Sales1 Fittings PTC Pipes Wholesale Valves Retail FluidTech $120m USD Adjusted Integrated Installation EBITD
Slide 32: EMEA business snapshot
EMEA business snapshot Exceptionally strong brands in a diversified set of markets and geographies Category mix2 Geographic mix2 Brands £217m Net Sales1 FluidTech Continental Europe Managing UK £72m Plumbing Adjusted EBITDA1 15 & Heating End Use Segments Footprint 1,100+ Employees R&D Manufacturing
Slide 33: RWC APAC snapshot
RWC APAC snapshot Exceptionally strong brands in a diversified set of markets, and geographies Category Mix – AUS/NZ Category Mix - Asia Brands Other Fittings A$277m PTC Fittings Fluid Tech Net Sales1 Other Pipe Fluid Tech Managing Brass PTC Other A$66m EBITDA 15 Valves Pipe End Use Segments 400+ Em