Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Macquarie Australia Conference 2021
25 slides from Reliance Worldwide's conference presentation, May 4, 2021
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference 4 May 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 (4 May 2021). 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. COVID-19: the past year in review 4 2. Group Strategy Overview 10 3. Regional Strategies 13 4. Capital Management 21 5. Summary 23 3
Slide 4: COVID-19 impacts: the past year in review
COVID-19 impacts: the past year in review 4
Slide 5: One year on from COVID-19
One year on from COVID-19 While early impacts were negative, from 1Q FY21 onwards all regions experienced sales growth driven by increased expenditure on repair and remodel activity RWC Quarterly Revenues A$m 350 300 250 200 150 100 Q4 Q1 Q2 Q3 FY19 FY20 FY21 5
Slide 6: Strong operating cash flows delivered during COVID-19
Strong operating cash flows delivered during COVID-19 Cash generation has enabled substantial reduction in net debt and leverage $m Cash Flow from $m Net Debt Net Debt/EBITDA (times) Operations 450.0 160 155.6 394.7 1.7 145.5 400.0 1.57 140 350.0 1.5 120 300.0 1.3 100 250.0 226.0 80 1.1 200.0 60 150
Slide 7: Segment results: Americas
Segment results: Americas Strongest performing region has benefitted from pronounced uplift in R&R activity Americas Quarterly Revenues US$m1 ▪ US sales have been boosted by a surge in residential repair and remodel activity 150 ▪ Sales in retail and hardware channels of core plumbing products have
Slide 8: Segment results: Asia Pacific
Segment results: Asia Pacific Growth driven by increased R&R activity and new housing construction in Australia APAC Quarterly Revenues A$m1 70 ▪ External sales growth reflects stronger Australian new housing construction and repair and remodel markets 60 ▪ Increased Australian single family constru
Slide 9: Segment results: EMEA
Segment results: EMEA Strong sales recovery post COVID-19 lock down ▪ Sales volumes recovered in July and August following easing of COVID-19 government restrictions EMEA Quarterly Revenues GBPm1 60 ▪ Improved sales activity driven by pent-up demand following 50 the COVID-19 lockdown and from channe
Slide 10: Strategy Overview
Strategy Overview 10
Slide 11: RWC strategy summary
RWC strategy summary Creating Value through Product Leadership Create, make and deliver plumbing products that are the first choice for users. Solutions for the end-user Distributor Relationships Operational Excellence Smart product solutions that improve Increasing value for the distributor while P
Slide 12: End Use by Region
End Use by Region Core RMI market represents significant share of global end use segments 12 Note* - FluidTech segment includes water treatment, drinks and dispense, air and pneumatics, and blown fiber applications; Segment splits based on Group FY20 net external sales
Slide 13: Regional Strategies
Regional Strategies 13
Slide 14: 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 15: Americas growth plan
Americas growth plan Utilize 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: Capital Management
Capital Management 21
Slide 22: 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 23: Summary
Summary 23
Slide 24: Summary
Summary RWC is well positioned for future growth and the 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, empowering the DIYer • Value for dist
Slide 25: Q&A
Q&A
Reliance Worldwide — Macquarie Australia Conference 2021 on 6ix