Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Macquarie Australia Conference 2022
25 slides from Reliance Worldwide's conference presentation, May 5, 2022
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference 5 May 2022 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 (5 May 2022). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for subscrip
Slide 3: Agenda
Agenda 1. Lookback Through COVID 4 2. Strategy Overview 8 3. Capital Management 18 4. Third Quarter Trading Update 21 5. Summary 24 3
Slide 4: Lookback through COVID
Lookback through COVID Sales growth and Adjusted EBITDA growth of 41% on a 2-year basis Net Sales 9 Months YTD $m Adjusted EBITDA 9 Months YTD $m +41% +41% 800 700 200 600 150 500 400 100 300 200 50 100 0 0 9 Mo/FY20 9 Mo/FY21 9 Mo/FY22 9 Mo/FY20 9 Mo/FY21 9 Mo/FY22 31 Mar YTD US Freeze EZ-FLO 31 Ma
Slide 5: Americas performance through COVID
Americas performance through COVID Uplift in US repair and remodel activity has been sustained beyond COVID Americas Quarterly Revenues $m ▪ Americas sales excluding EZ-FLO up 34% 200 on a 2-year basis for 9 months ended 31 March 150 ▪ Price rises have positively impacted reported sales in past 4 qu
Slide 6: APAC performance through COVID
APAC performance through COVID Continued growth in external sales driven by strength of Australian new construction and R&R market APAC Quarterly Revenues A$m Australian New Dwelling Commencements1,2 80 70 200,000 60 150,000 50 40 100,000 30 20 50,000 10 0 0 2018 2019 2020 2021 Houses Other 1 Source
Slide 7: EMEA performance through COVID
EMEA performance through COVID Sales recovered post COVID lock downs, UK P&H volumes have now reverted to longer run trend RWC Top 20 UK P&H SKUs vs Builders EMEA Quarterly Revenues £m Merchant Building Index 140 60 120 50 100 40 80 30 60 20 40 10 Top 20 P&H SKU's 20 BMBI P&HE BMBI Kitchens & Bathro
Slide 8: Strategy Overview
Strategy Overview 8
Slide 9: Market fundamentals are favourable for long term growth
Market fundamentals are favourable for long term growth 9
Slide 10: US private fixed residential investment (PRFI) levels
US private fixed residential investment (PRFI) levels PFRI over-investment and under-investment PFRI as a % of GDP – actual and “normalized” since 2002 using a moving 20-year average Source: Bank of America Source: Bank of America ▪ Since the start of the housing bubble in the mid-2000s, ▪ Actual PF
Slide 11: RWC Strategy
RWC Strategy Creating value through product leadership 11
Slide 12: 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 13: A portfolio of strong brands
A portfolio of strong brands 13
Slide 14: Continued product innovation is core to RWC
Continued product innovation is core to RWC RWC’s products are designed to make the end users livers easier 14
Slide 15: Acquisitions have expanded product portfolio
Acquisitions have expanded product portfolio Most recent acquisition was EZ-FLO in November 2021 ▪ Leading manufacturer and distributor of plumbing supplies, including plumbing specialty products, appliance supply lines, flexible water connectors, gas Sales by Product Category connectors, stop valve
Slide 16: RWC self-manufactures >80% of products sold
1 RWC self-manufactures >80% of products sold Manufacturing capabilities enable strong control of supply chain 1 % of revenue 16
Slide 17: Service and delivery performance are key competitive factors
Service and delivery performance are key competitive factors Americas: 11 Distribution Centres ▪ New 600,000 sq ft facility in Alabama ▪ Will enable consolidation of sub-optimal locations in Alabama into one location ▪ Brings broader distribution network in alignment with our long-term growth needs
Slide 18: Capital Management
Capital Management 18
Slide 19: 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 20: RWC’s debt facilities increased in April
RWC’s debt facilities increased in April RWC Debt Facilities Maturity Profile ($m) ▪ Net debt of $555.2 million at 31 March 2022 up slightly on 31 Dec 2021 reflecting higher accounts receivable balances 500 resulting from growth in sales 450 45 400 ▪ During April, RWC completed a $250 million unsecu
Slide 21: FY22 Third Quarter Trading Update
FY22 Third Quarter Trading Update 21
Slide 22: Summary of 9-Month FY22 Performance
Summary of 9-Month FY22 Performance Commentary Nine months ended: Variance Variance 31 Mar 211 31 Mar 22 FY22 v FY22 v ▪ Sales growth recorded in Americas and Asia Pacific $m FY21 YTD FY20 YTD regions, slight decline in EMEA revenues following strong activity levels in the pcp Net Sales 740.5 845.2
Slide 23: Outlook for FY22
Outlook for FY22 1 Outlook for RWC’s key markets remains positive from a demand perspective ▪ Demand underpinned by RWC’s core repair and maintenance concentration and augmented by increased expenditure on home remodelling activity and heightened levels of new home construction. ▪ Operating margins
Slide 24: Summary
Summary 24
Slide 25: Long Term Outlook
Long Term Outlook 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
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