Reece Limited · ASX:REH
Reece — Shareholder Meeting (October 2024)
31 slides from Reece's shareholder meeting presentation, Oct 24, 2024
Slide 1: 2024 Annual General Meeting Addresses
ASX Announcement 24 October 2024 2024 Annual General Meeting Addresses Attached for release are the 2024 AGM Chair and CEO addresses and AGM presentation. For further information contact: This announcement has been authorised by Chantelle Duffy, Company Secretary at the direction of the Reece Limite
Slide 2: Chair Address – Tim Poole
Chair Address – Tim Poole I’m delighted to address you today and share more about our performance and activities over the last 12 months. SLIDE: Financial highlights Reece had another positive year in FY24, delivering on its long-term growth strategy and navigating challenging markets to deliver a s
Slide 3: CEO Address – Peter Wilson
CEO Address – Peter Wilson Good morning and thank you for joining us for our 2024 AGM. SLIDE: Agenda Today I’ll give you a recap on our strategy, talk through our operational and financial highlights for FY24 and share first quarter sales for FY25. SLIDE: Our Blueprint Our blueprint guides everythin
Slide 4: Financial overview
SLIDE: Financial overview Turning now to an overview of FY24. Our result for the year reflected disciplined execution as we continued to navigate challenging markets. Group sales were up 3% to $9.1 billion. ANZ sales were flat at $3.8 billion, with housing markets softening during the year. US sales
Slide 5: Summary
Our focus remains on the long term and delivering our customer promise. SLIDE: Summary In summary, despite short term challenges, our long-term approach remains unchanged. We are a diversified business by customer and end market and are well placed to face into a softer trading environment. The medi
Slide 6: Reece Group AGM 2024
Reece Group AGM 2024 >
Slide 7: Disclaimer
Disclaimer The material in this presentation has been prepared by Reece Limited (ABN 49 004 313 133) (“Reece") (ASX:REH) and is general background information about Reece's activities current as at the date of this presentation, 24 October 2024. The information is given in summary form and does not
Slide 8: Chair’s Address
Chair’s Address Tim Poole
Slide 9: Financial highlights
Financial highlights Sales Adjusted Adjusted Adjusted revenue EBIT NPAT EPS up 3% to $9.1b up 2% to $681m up 3% to $416m up 3% to 64 cents FY24 final dividend FY24 total dividend 17.75 cents per share 25.75 cents per share (fully franked) (fully franked) For all statutory metrics (EBIT, NPAT and EPS
Slide 10: Reece. Works for you.
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Slide 11: CEO’s Address
CEO’s Address Peter Wilson
Slide 12: Agenda
Agenda 01 Strategy & operational recap 02 FY24 financial review 03 Q1 FY25 update 04 Summary 7 Reece. Works for you.
Slide 13: Strategy & operational recap
01 Strategy & operational recap 8 Reece. Works for you.
Slide 14: Our Blueprint
Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise Building a better Our purpose We will be our Operational Customised service: and values guide trade’s most Excellence world for our our decisions and valuable partne
Slide 15: The Reece Way
The Create customers Be your best Reece Way for life Team first Entrepreneurial spirit Innovate big Try. Try. Try. and small Our Purpose Building a better Own it Keep it world for our simple customers by Do the Be humble being the best. right thing 10 Reece. Works for you.
Slide 16: Strong execution of strategic priorities
Strong execution of strategic priorities Operational Accelerating Investing for Excellence Innovation Profitable Growth • Ongoing focus on the • Remain focused on innovation • Ongoing expansion of fundamentals, continuous initiatives supporting trade of network in both regions improvement and delive
Slide 17: An established and growing network
An established and growing network 661 branches +6 +15 243 branches branches Market leader, leveraging network density Roll out progressing at pace, to deliver customer promise. growth platform for the long term. 12 Reece. Works for you.
Slide 18: Driving innovation for the future of our trade
Driving innovation for the future of our trade Delivering digital tools to help customers run their businesses. 13 Reece. Works for you.
Slide 19: FY24 Financial review
02 FY24 Financial review 14 Reece. Works for you.
Slide 20: Financial overview
Financial overview Disciplined execution in a challenging market environment Sales Adjusted Adjusted Adjusted revenue EBIT NPAT EPS up 3% to $9.1b up 2% to $681m up 3% to $416m up 3% to 64 cents ANZ US Net leverage ratio FY24 total dividend Sales revenue Sales revenue 25.75 cents per flat at $3.8b u
Slide 21: Group performance
Group performance Group adjusted EBIT & sales Group ROCE3 700 5,000 16.0% 9,000 4,500 600 14.0% 8,000 4,000 7,000 12.0% 500 3,500 Shareholders equity Sales revenue ($m) Adjusted EBIT ($m) plus net debt ($m) 6,000 10.0% 3,000 ROCE (%) 400 5,000 2,500 8.0% 300 4,000 2,000 6.0% 3,000 1,500 200 4.0% 2,0
Slide 22: ANZ financial highlights
ANZ financial highlights Sales flat • Softening housing market created headwinds. FY24 1H 2H FY24 FY23 Var. % • Backlog activity largely worked through. 30 June 2024 (A$m) Sales revenue 1,972 1,874 3,846 3,853 flat Adjusted EBIT down 3% • Remained focused on execution of the Adjusted EBITDA1 307 253
Slide 23: US financial highlights
US financial highlights USD Sales up 3% (US dollars) FY24 1H 2H FY24 FY23 Var. 30 June 2024 (US$m) • Overall trading environment challenging. Sales revenue 1,683 1,769 3,452 3,342 3% Adjusted EBIT up 7% (US dollars) Adjusted EBITDA1 143 150 293 269 9% Adjusted EBITDA1 margin 8.5% 8.5% 8.5% 8.1% 4
Slide 24: Capital management priorities
Capital management priorities Enable sustainable long term growth 01. 02. 03. Invest in growth Strong balance Shareholder sheet returns Organic Pay down debt; Dividends, investments retain flexibility share buyback. and M&A. for growth. 19 Reece. Works for you.
Slide 25: Q1FY25 update
03 Q1FY25 update 20 Reece. Works for you.
Slide 26: Trading Update Q1FY25
Trading Update Q1FY25 Sales revenue ($M) • Softness in housing markets continues • ANZ revenue broadly flat YoY with underlying volumes softening on the same period last year. Sales supported by recent bolt-on M&A activity. • US revenue -6.5% (USD) YoY reflecting lower volumes, deflation in select c
Slide 27: Summary
04 Summary Reece approach remains unchanged. Focus on the Customer Investing for fundamentals proposition the future 22 Reece. Works for you.
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Slide 29: Appendix & supplementary information
Appendix & supplementary information 24 Reece. Works for you.
Slide 30: Key metrics
Key metrics Reconciliation from Statutory EBIT to Adjusted EBIT Reconciliation from Statutory NPAT to Adjusted NPAT FY24: 30 June 2024 (A$m) FY24 FY23 Var. FY24: 30 June 2024 (A$m) FY24 FY23 Var. EBIT (statutory) 681 654 4% NPAT (statutory) 419 388 8% Add back/deduct: Add back/deduct (tax effected):
Slide 31: Group definitions
Group definitions Adjusted EBITDA and Adjusted EBIT are non-IFRS metrics used by Reece for internal management reporting purposes as 1 Adjusted EBITDA / Adjusted EBIT these metrics better reflect underlying performance. Non-IFRS information is not subject to review or audit by the Company’s external