Reece Limited · ASX:REH
Reece — Shareholder Meeting (October 2022)
27 slides from Reece's shareholder meeting presentation, Oct 27, 2022
Slide 1: 2022 AGM Presentation
ASX Announcement 27 October 2021 2022 AGM Presentation Attached for release is Reece Limited’s 2022 AGM slide presentation. For further information contact: Siobhan Weaver Investor Relations Reece Group E: siobhan.weaver@reece.com.au T: 0477 480 813 This announcement has been authorised by Chantelle
Slide 2: Disclaimer
1 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 form and does not purport to be c
Slide 3: AGM 2022
reece group” AGM 2022 27 October 2022
Slide 4: Agenda
3 Agenda 01 02 03 HY22 summary FY22 Our focus Operational overview overview 04 05 06 FY22 Financial Outlook and Q1 Summary Performance
Slide 5: Navigating a challenging environment in FY22
4 Navigating a challenging environment in FY22 Focused on team and customer Flexible model to spread demand on network, focus on maintaining customer promise Increased inventory, prioritised being in stock for customers Focused on safe environment, supporting team & retention
Slide 6: Financial highlights
5 Financial highlights Strong result in a complex environment; significant inflation tailwind Sales Normalised EBIT NPAT EPS Revenue EBITDA* up 22% up 16% up 17% up 37% up 37% to $7.7b to $838m to $578m to $392m to 61 cents ANZ US Net leverage ratio** Total FY22 dividend Sales Revenue up Sales Reven
Slide 7: Our focus
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Slide 8: Our Blueprint
7 Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise Our purpose and We will be the Brilliant Customised To improve the lives service: of our customers values guide our trade's most Fundamentals and our people by dec
Slide 9: A customer led sustainability strategy
8 A customer led sustainability strategy 1. 2. 3. Sustainable Empowered Resilient Business Trade Communities We will reduce our environmental We will invest in our industry We will meaningfully contribute impact and promote sustainable to create more sustainable to building resilient business practi
Slide 10: Reducing our environmental footprint
9 Reducing our environmental footprint 35% Scope 1 and 2 GHG emissions Achieving our goals: reduction from FY21 baseline by FY30 New branches designed to reduce impact Net zero Invest in energy efficiency Scope 1 and 2 GHG emissions solutions for existing by FY40 network Expand efforts to source Par
Slide 11: ANZ
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Slide 12: Strong execution to manage macro challenges
11 Strong execution to manage macro challenges Brilliant Investing for Delivering Fundamentals Growth Innovation • Focused on • Network upgrades; • Progressing innovation ANZ store refurbishment initiatives; focus on fundamentals, strategy and culture in complex program, relocations trade of the fut
Slide 13: Australia & New Zealand network
12 Brilliant Fundamentals Australia & 11 New Zealand network 645 Branches 122 51 180 44 Network density enabled a 184 flexible approach to delivering 38 customer promise despite disruption in FY22 15
Slide 14: Enabling innovation & collaboration
Reece Group – AGM 2022 13 Delivering Innovation Enabling innovation & collaboration Continued focus on delivering innovation for trade of the future Moved to purpose built support centre, The Works, to drive innovation and collaboration
Slide 15: Operational Overview
Operational Overview US
Slide 16: Reflecting on four years in the US
15 Reflecting on four years in the US Strategic rationale when announced in 2018 ü Strategic platform ü Access to large, ü Experienced ü Ability to leverage ü Significant in the growing US growing markets management team operational opportunity to drive Sun Belt region with strong with deep industry
Slide 17: Moving to a single Reece brand
16 16 Investing for Growth Moving to a single Reece brand Local Reece presence a symbolic milestone Physical network rebrand commencing in California
Slide 18: FY22: early stages of executing of a long-term strategy
17 FY22: early stages of executing of a long-term strategy Brilliant Investing for Delivering Fundamentals Growth Innovation • Embedding culture, • Progressed network • Initial focus on building out training and investment program first two development program (refurb, new stores, strategy pillars U
Slide 19: US network
18 Investing for Growth US network 204 Branches
Slide 20: FY22 Financial performance
04 FY22 Financial performance
Slide 21: ANZ performance
20 ANZ performance FY22 • Sales up 12% due to demand and 30 June 2022 1HY 2HY FY22 FY21 Var. % FY20 inflation (AU$m) • Estimated product inflation dynamic H2 9% (H1 8-9%) Sales revenue 1,733 1,785 3,518 3,154 11.5% 2,888 • Adjusted EBITDA margin compression of 150bps Normalised EBITDA* 249 277 526 5
Slide 22: US performance
21 US performance USD FY22 HY1 HY2 FY22 FY21 Var. % FY20 30 June 2022 (US$m) • Sales up 28% on USD basis Sales revenue 1,364 1,622 2,986 2,333 28.0% 2,094 • Estimated product inflation dynamic H2 26% (H1 low-mid teens) Normalised EBITDA* 108 118 226 163 38.7% 147 • Normalised EBITDA margin up 50 bps
Slide 23: Outlook
05 Outlook
Slide 24: Q1 FY23 Sales
23 Q1 FY23 Sales Q1 sales up 29% for the Group Up 14% in ANZ Q1 FY23 Sales Up 33% in the US on USD basis ($M) 2,500 Inflation approx. 12% in ANZ, 86 2,281 305 2,195 approx. 25% in US vs Q1FY22 2,000 119 1,771 Gradual moderation in inflation and softening demand anticipated in H2, 1,500 therefore Q1
Slide 25: Reece well placed to navigate complex environment
24 Reece well placed to navigate complex environment Diversified business A trusted brand Clear track record 1 with a differentiated customer proposition 2 100 years of growing through the cycle 3 By geography, segment, customer; focused on resilient R+R Large markets Well capitalised Long term focu
Slide 26: Summary
25 Summary Strong Long-term Investing for Result Focus the Future
Slide 27: reece group
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