Reece Limited · ASX:REH

Reece — Shareholder Meeting (October 2019)

44 slides from Reece's shareholder meeting presentation, Oct 30, 2019

  1. Slide 1: AGM 2019

    For personal use only AGM 2019

  2. Slide 2: Disclaimer

    Disclaimer For personal use only Reece AGM - 2019

  3. Slide 3: Chairman's Address

    For personal use only Chairman’s Address Mr Alan Wilson Reece AGM - 2019

  4. Slide 4: CEO & MD's Address

    Dec SLT For personal use only CEO & MD’s Address Mr Peter Wilson Reece AGM - 2019

  5. Slide 5: Agenda

    Agenda For personal use only Our Strategic Approach Financial Performance Business Highlights FY20 Preview Reece AGM - 2019

  6. Slide 6: Agenda: Our Strategic Approach

    Agenda For personal use only Our Strategic Approach Reece AGM - 2019

  7. Slide 7: It all starts with our Purpose & Values

    It all starts with our Purpose & Values For personal use only Reece AGM - 2019

  8. Slide 8: Our vision

    Our vision For personal use only United Australia & States New Zealand Reece AGM - 2019

  9. Slide 9: FY19 – a year of transition

    FY19 – a year of transition For personal use only Reece AGM - 2019

  10. Slide 10: Our inherent commitment stays the same

    Our inherent commitment stays For personal use only the same Reece AGM - 2019

  11. Slide 11: Agenda: Financial Performance

    Agenda For personal use only Financial Performance Reece AGM - 2019 11

  12. Slide 12: Sales Revenue

    Sales Revenue For personal use only FY19 $5,464m FY18 $2,689m • Record sales result 103% • Acquisitions in the US & NZ Reece AGM - 2019

  13. Slide 13: Normalised EBITDA

    Normalised EBITDA For personal use only FY19 $522m FY18 $378m • Solid performance in Australia with a 38% slowing market • MORSCO results in line with expectations • Continuing to invest in people & technology Reece AGM - 2019

  14. Slide 14: Statutory NPAT

    Statutory NPAT For personal use only FY19 $202m FY18 $225m • Normalised NPAT up 6% 10% • Impact of one off acquisition costs and fair value inventory unwind • ANZ moderated in the second half Reece AGM - 2019

  15. Slide 15: Segment Performance

    Segment Performance For personal use only • Record ANZ result, sales revenue up 6.6% Sales Normalised Revenue EBITDA • MORSCO performing in line with expectations • The business mix has impacted on EBITDA margins • New housing approvals have slowed in Australia ANZ USA TOTAL ANZ USA TOTAL Reece AGM

  16. Slide 16: Agenda: Business Highlights

    Agenda For personal use only Business Highlights Reece AGM - 2019 16

  17. Slide 17: Market Leading Customer Experience, US Growth Platform, Innovation, People

    For personal use only Market Leading US Growth Platform Customer Innovating for Investing in Experience the Future our People Reece AGM - 2019

  18. Slide 18: For personal use only

    For personal use only Reece AGM - 2019

  19. Slide 19: Strategy & Vision

    Strategy & Vision For personal use only Reece AGM - 2019

  20. Slide 20: Laying the foundations for the long term

    Laying the foundations for the long term For personal use only Reece AGM - 2019

  21. Slide 21: US Branches +4

    US Branches For personal use only +4 Reece AGM - 2019

  22. Slide 22: Growing in Southern California

    Growing in Southern California For personal use only California locations Total 23 Reece AGM - 2019

  23. Slide 23: Market Leading Customer Experience, US Growth Platform, Innovation, People

    For personal use only Market Leading US Growth Platform Customer Innovating for Investing in Experience the Future our People Reece AGM - 2019

  24. Slide 24: Product Innovation

    Product Innovation For personal use only GROHE Thermann EvoPEX Kaden Reece AGM - 2019

  25. Slide 25: Digitising the customer experience

    Digitising the customer experience For personal use only % Reece AGM - 2019

  26. Slide 26: Australian Branches +5

    Australian Branches 10 For personal use only 121 52 44 180 179 36 15 +5 Reece AGM - 2019

  27. Slide 27: NZ Expansion

    NZ Expansion For personal use only A truly national footprint +14 Reece AGM - 2019

  28. Slide 28: Market Leading Customer Experience, US Growth Platform, Innovation, People

    For personal use only Market Leading US Growth Platform Customer Innovating for Investing in Experience the Future our People Reece AGM - 2019

  29. Slide 29: NEXT & Superseed

    NEXT & Superseed For personal use only Reece AGM - 2019

  30. Slide 30: NEXT – innovation toolkit

    NEXT – innovation toolkit For personal use only Reece AGM - 2019

  31. Slide 31: Continuous Improvement

    Continuous Improvement For personal use only Reece AGM - 2019

  32. Slide 32: For personal use only

    For personal use only Reece AGM - 2019

  33. Slide 33: For personal use only

    For personal use only Reece AGM - 2019

  34. Slide 34: Market Leading Customer Experience, US Growth Platform, Innovation, People

    For personal use only Market Leading US Growth Platform Customer Innovating for Investing in Experience the Future our People Reece AGM - 2019

  35. Slide 35: Future Leaders

    For personal use only Future Leaders Reece AGM - 2019

  36. Slide 36: For personal use only

    For personal use only Reece AGM - 2019

  37. Slide 37: Responsibility

    Responsibility For personal use only Reece AGM - 2019

  38. Slide 38: Agenda: FY20 Preview

    Agenda For personal use only FY20 Preview Reece AGM - 2019

  39. Slide 39: ANZ Building

    ANZ Building Commentary For personal use only Dwelling Approvals Dwelling Completions A slower Australian (000s) (000s) economy underlining the importance of diversification 239 231 232 222 219 218 213 200 202 187 192 192 177 168 165 161 162 150 154 151 146 148 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY1

  40. Slide 40: ANZ Alterations

    ANZ Alterations Commentary For personal use only Alterations and Additions A slower Australian ($ million) economy underlining the importance of diversification 8,116 7,918 7,845 7,787 7,797 7,543 7,475 7,519 7,517 7,332 7,215 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Source: BIS Oxford

  41. Slide 41: ANZ Non-Residential

    ANZ Non-Residential Commentary For personal use only Non-residential Commencements A slower Australian ($ million) economy underlining the importance of diversification 45,972 44,891 43,818 41,991 40,101 37,890 37,760 36,151 35,194 33,600 31,219 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

  42. Slide 42: US Residential

    US Residential Commentary For personal use only Single and multi-family housing starts Leading Indicator of remodeling activity (‘000’s) - Q1 2019 336 6.9% 7.3% 7.3% 7.0% 6.9% 6.9% 6.4% 6.3% 6.0% 6.1% 6.5% 5.2% 2.6% 1,465 345 352 353 347 309 330 336 339 380 380 316 323 374 370 307 313 354 297 302 39

  43. Slide 43: US Non-Residential

    US Non-Residential Commentary For personal use only Non-Residential Building Construction Expenditure Water Supply Construction Expenditure ($bn) ($bn) 530 536 511 480 489 17 446 16 16 16 16 15 15 392 14 14 14 14 13 13 360 13 13 12 2013 2014 2015 2016 2017 2018 2019E 2020E 2005 2006 2007 2008 2009 2

  44. Slide 44: Q&A

    For personal use only Reece AGM - 2019 Q&A

Reece — Shareholder Meeting (October 2019) on 6ix