Slide 1: Full Year Results 2019
reece Full Year Results _ 2019
Slide 2: Important Notice and Disclaimer
Important Notice and 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. The information is given in summary for
Slide 3: Contents
Contents Financial Business FY19 Financial Highlights Highlights Performance FULL YEAR RESULTS_2019 &
Slide 4: It all starts with our Purpose & Values
It all starts with our Purpose & Values Discover your best Innovate big and small Grow as ateam Try. Try. Try. Improving the lives of our customers and people by striving for greatness every day Do the right thing Keep it simple Write the next chapter Behumble “> FULL YEAR RESULTS_2019 4
Slide 5: FY19 - a year of transition
FY19 - . a year of transition Local to global Pivot to digital experience Investing for future growth Drawing on our history to succeed ina slowing market Prudent debt management FULL YEAR RESULTS_2019
Slide 6: Our inherent commitment stays the same
Our inherent commitment stays the same Helping our customers succeed Being known for quality products and services Sharing our expertise FULL YEAR RESULTS_2019
Slide 7: A long term investment strategy with a local focus
A long term investment strategy with a local focus United States - Growth Opportunity Australia & New Zealand - Customised service ina digital landscape FULL YEAR RESULTS_2019
Slide 8: Contents
Contents Financial Business FY19 Financial Highlights Highlights Performance FULL YEAR RESULTS_2019 8
Slide 9: Financial Highlights
Slide 10: FY19 Financial Summary
FY19 Financial Summary T tT T v to $5,464m to $522m to $238m to $202m * Normalised EBITDA excludes business acquisition costs, finance income and fair value inventory unwind ** Normalised NPAT excludes business acquisition costs and fair value inventory unwind FULL YEAR RESULTS_2019 10
Slide 11: Sales Revenue
Sales Revenue FY19 Sa O03 of + Record sales result $5,464 ¢ Acquisitions in the US & NZ $2,689 $2,085 $2,276 $2,429 FY15 FY16 FY17 FY18 FY19 FULL YEAR RESULTS_2019 a
Slide 12: Normalised EBITDA
Normalised EBITDA FY19 $522m | % Australia with a slowing market $522 $335 oo aia MORSCO results in line $282 with expectations . Continuing to invest in people & technology FY15 FY16 FY17 FY18 FY19 FULL YEAR RESULTS_2019 12
Slide 13: Statutory NPAT
Statutory NPAT FY19 $202m Normalised NPAT up 6% * Impact of one off acquisition costs and fair value inventory unwind ANZ moderated in the second half FULL YEAR RESULTS_2019 $238 $225 neo $212 | $202 ! $166 FYI5 FYI6 FYI7 FYI8 FYI9
Slide 14: Segment Performance
Segment Performance Record ANZ result, ; sales revenue up 6.6% Sales ase Normalised 522, Revenue EBITDA MORSCO performing in line with expectations 2,689 2,866 378 373 378 | 2,598 2,689 The business mix has impacted on EBITDA 149 margins New housing approvals have ANZ USA TOTAL ANZ USA TOTAL slowed
Slide 15: Dividends
Dividends FY19 20.25cps + Total dividend declared for FY19 maintained at 20.25 cents per share * Total cash dividend up 3.4% to $113.6 million 15.20 18.40 20.00 20.25 20.25 FY15 FY16 FY17 FY18 FY19 FULL YEAR RESULTS_2019
Slide 16: ANZ Economic Commentary
ANZ Economic Commentary A slower Australian economy underlining the importance of diversification Dwelling Approvals (000s) Alterations and Additions $ million) Dwelling Completions (000s) Non-residential Commencements $ million) FULL YEAR RESULTS_2019
Slide 17: US Economic Commentary
US Economic Commentary Single and multi-family housing starts (‘000’s) Non-Residential Building Construction Expenditure ($bn) Note eludes beth pvaseand pub FULL YEAR RESULTS_2019 1374 12471245 12861297 Leading Indicator of remodeling activity - Q1 2019 Water Supply Construction Expenditure ($bn) Ho
Slide 18: Business Highlights
Business Highlights Pe FULL YEAR RESULTS_2019
Slide 19: Leading US Growth Platform
/ t Leading .“ US Growth us er novating for Investing in our Platform yp erience the Future ~ People
Slide 20: Leading US Growth Platform
a ge t Leading .“ US Growth cate’ novating for Investing in our Platform Pa erience the Future ~ People
Slide 21: One Year In
Slide 22: Strategy & Vision
Strategy & Vision Discover your best Innovate big and small Try. Try. Try. Do the right thing Keep it simple Write the next chapter Be humble FULL YEAR RESULTS_2019 22
Slide 23: Laying the foundations for the long term
Laying the foundations for the long term FULL YEAR RESULTS_2019
Slide 24: US Branches
US Branches FULL YEAR RESULTS_2019
Slide 25: US Growth Platform
US Growth ; inovating for Investing in our Platform "the Future - People
Slide 26: Exclusive Products
Exclusive Products Thermann FULL YEAR RESULTS_2 Exclusive brands, quality products, innovation and superior support are key to delivering value to our customers. EvoPEX
Slide 27: Digitising the customer experience
Digitising the customer experience FULL YEAR RESULTS_2019
Slide 28: Australian Branches
FULL Australian Branches Ol. YEAR RESULTS_2019 +5
Slide 29: NZ Expansion
| NZ Expansion A truly national footprint FULL YEAR RESULTS_2019 @ Xkkik @ Kj} g¥ ‘Mhhuty @ Nkga wiz
Slide 30: NPS
NPS Flo FM FIZ FIS FI4 FIS FI6 FIT FIB FID FULL YEAR RESULTS_2019 30
Slide 31: US Growth Platform
US Growth ; inovating for Investing in our Platform "the Future - People
Slide 32: NEXT & Superseed
Slide 33: Continuous Improvement
Continuous Improvement War on FULL YEAR RESULTS_2019 | 33
Slide 34: US Growth Platform
Ma eading a — US Growth er Innovating for Investing in our Platform y- erience - the Future “ People
Slide 35: Leadership
Leadership FULL YEAR RESULTS_2019
Slide 36: Financial Highlights
Financial Highlights pl FULL YEAR RESULTS_2019
Slide 37: Results Summary
Results Summary 30 June 2019 full year (A$m) MORSCO results in line with expectations Sales Revenue Normalised EBITDA* NPAT down 10% due to recognition of business acquisition EBIT costs and one off impact of fair NPAT value inventory unwind Normalised NPAT** New Zealand acquisition complete Finals
Slide 38: Net Working Capital and Cash Flow
1200 -800 FY14 Receivables FY15 L Net Working Capital (FYI4A-FY19A) FY16 = Inventory FY17 FY18 Payables 25% 20% 15% 10% 5% FY19 NWC% (RHS) 30 June 2019 full year (A$m) FYI9A FY18A Normalised EBITDA* Net movements in working capital Non-cash items in EBITDA Income Tax Paid Finance Costs Cash flow fro
Slide 39: Balance Sheet
Balance Sheet Net Debt uss? 151 90 ve Q) (540) FY14 FY15 FY16 FY17 FY18 FY19 As at 30 As at 31 30 June 2019 year end (A$m) Jun 2019 | Dec 2018 Cash and cash equivalents Total debt Net debt Net Financial asset (FX derivative) Net debt including FX derivative impact Leverage Ratio (Net Debt / EBITDA*)
Slide 40: FY2019 Summary
FY2019 Summary Globally Industry ; diversified : Fi Investing Integration leading growth expertise for the future strategy FULL YEAR RES!
Slide 41: Q&A