Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Macquarie Australia Conference 2024
30 slides from Reliance Worldwide's conference presentation, May 7, 2024
Slide 1: Presentation at Macquarie Australia Conference
ASX Announcement 7 May 2024 Presentation at Macquarie Australia Conference Reliance Worldwide Corporation Limited (ASX: RWC) advises that Heath Sharp, Chief Executive Officer, will be presenting at the Macquarie Australia Conference today. A copy of the presentation is attached. For personal use onl
Slide 2: Investor Presentation May 2024
For personal use only Investor Presentation May 2024 Heath Sharp Chief Executive Officer RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 3: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (7 May 2024). It is information given in summary form and does not purport to be complete. For personal use only The presentation is not an offer or i
Slide 4: Introduction to RWC
For personal use only Introduction to RWC Who we are, what we do, where we play 3
Slide 5: RWC delivers a broad portfolio of plumbing solutions
RWC delivers a broad portfolio of plumbing solutions From the construction of new commercial and residential buildings to the repair and remodel of existing ones, RWC’s portfolio of innovative products and trusted brands make the job easier and more dependable For personal use only Plumbing Solution
Slide 6: RWC's portfolio of trusted products and brands
RWC’s portfolio of trusted products and brands deliver smart solutions that For personal use only are the first choice for plumbers 5
Slide 7: RWC manufactures in each of its major end markets
RWC manufactures in each of its major end markets For personal use only 6
Slide 8: RWC has a strong growth track record
RWC has a strong growth track record Since IPO in 2016, Net Sales has grown at an 18% CAGR driven by FY23 organic growth and M&A EBITDA Margin: For personal use only 22.2% RWC Net Sales US$m 1,400 1,200 1,000 FY16 EBITDA 800 Margin: 18.5% 600 400 200 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 9: Strategy overview
For personal use only Strategy overview What’s the opportunity 8
Slide 10: RWC's Vision | Complete plumbing global leader
RWC’s Vision | Complete plumbing global leader For personal use only Everything rough plumbing: Broad portfolio of plumbing products and systems Aimed at both Residential & Commercial end markets Across new construction, repair and remodel Distributed through wholesale, retail and OEM channels 9
Slide 11: RWC is well positioned for long-term growth
RWC is well positioned for long-term growth For personal use only Large and fragmented landscape RWC’s Total Addressable Market >US$25B Few large players Enduring tail winds Labour shortage Ageing homes Sustainability investments Differentiated proposition Save time Make jobs easier Tier 1 brands 10
Slide 12: RWC seeks to create value through product leadership
Strategy Overview RWC seeks to create value through product leadership For personal use only Solutions for Value for the Industry leading the job site distributor execution Smart product solutions that improve Increasing value for the distributor Premium quality products and contractor productivity,
Slide 13: Ongoing product development underpins strategy
Ongoing product development underpins strategy Gas Appliance SharkBite MAX PEX-a HoldRite For personal use only Connectors Product • Residential Markets • Residential remodel • Residential • Residential End repair and • Re-pipe remodel repair and remodel • Residential new • Residential new remodel c
Slide 14: Strategy implementation
For personal use only Strategy implementation How we are executing 13
Slide 15: Market capture priority by region
Market capture priority by region Each region has different growth opportunities For personal use only Growth across three pillars ▪ Residential repair & remodel through continued channel partner expansion Americas ▪ Commercial plumbing through a combination of new product development and bolt-on ac
Slide 16: Global | Continuous Improvement
Global | Continuous Improvement Focus Area Description Outcome ▪ Standardise and strengthen S&OP process and tools ▪ Continual focus on delivery performance For personal use only Supply Chain ▪ Supplier quality program ▪ Optimise inventory levels globally ▪ Continuous cost improvement within a “qual
Slide 17: Americas | Overview
Americas | Overview Strategy is to extend further into commercial plumbing and residential new construction while maintaining strong presence in residential repair and remodel For personal use only End Market Exposure US$890m Commercial New Residential America’s growth opportunities are centred on t
Slide 18: EMEA | Overview
EMEA | Overview EMEA is focused on driving operational efficiency ahead of market recovery Category mix1 Strategy For personal use only £226m Net Sales1 Pursue organic growth initiatives ▪ Targeted new product development opportunities leveraged across existing sales channels £73m Adjusted Operation
Slide 19: Asia Pacific | Overview
Asia Pacific | Overview Holman significantly changes APAC’s business growth profile RWC Holman Channel mix Strategy For personal use only Current Category leadership A$283 A$192m Net Net Sales3 WP ▪ Lead the PEX market through wholesale partners, Sales1 by bringing in global innovation and solutions
Slide 20: Holman overview
Holman overview Two major revenue categories: Plumbing and Watering For personal use only Plumbing Watering Revenue 47% 53% (% of total) SKUs ~1,300 ~1,800 Channels Wholesale Retail Retail Hardware Landscape Products PVC pipe and fittings - DWV, stormwater, pressure, S&P Garden hoses, retractable ho
Slide 21: Recap of Holman acquisition
Recap of Holman acquisition Holman broadens RWC’s product offering and channel reach in APAC Holman’s product portfolio ▪ Holman’s plumbing products portfolio complements RWC water-in portfolio with water-out products will complement RWC’s ▪ Additional product ranges doubles RWC’s Target Addressable
Slide 22: Focused on delivering for shareholders
For personal use only Focused on delivering for shareholders Capital Management approach 21
Slide 23: 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 For personal use only Strong Financial Value creation Capital management Focus Improving long term Organic Capital Capital Consistent Ca
Slide 24: RWC: committed to making a positive, lasting impact
RWC: committed to making a positive, lasting impact Net Zero by 42% reduction in Scope 3 2050 Scope 1 and Scope For personal use only Continue to measure Scope 3 Committed to 2 emissions by 2030 emissions with an aspiration of reducing Scope 1 and setting targets to achieve net Environment Scope 2 e
Slide 25: Outlook
For personal use only Outlook 24
Slide 26: Short term market challenges due to higher interest rates
Short term market challenges due to higher interest rates… Leading Indicator or Remodelling Activity – Fourth Quarter Australian New Dwelling Commencements1 For personal use only 200,000 150,000 100,000 50,000 0 2019 2020 2021 2022 2023 Detached Houses Multi-Family US Existing Home Sales2 (000) UK N
Slide 27: …but long-term fundamentals remain strong
…but long-term fundamentals remain strong Aging housing stock supports R&R activity Repair & Remodel sector is less cyclical than new construction For personal use only 26
Slide 28: FY24 Outlook: guidance maintained
1 FY24 Outlook: guidance maintained Group February 2024 Guidance Trading Outlook Status Net Sales Down low to mid-single digits on FY23 Unchanged For personal use only Operating Margin Group EBITDA margin stable on FY23 Unchanged Operating Cash Flow 2nd Half operating cash flow conversion of 90%+ Un
Slide 29: Conclusion
For personal use only Conclusion 28
Slide 30: RWC is a global growth-orientated building products company
RWC is a global growth-orientated building products company with defensive end-market exposures Global plumbing solutions in a large and Portfolio of plumbing solutions underpinned growing market by in-house R&D For personal use only FY23 EBITDA Margin: 22.2% FY16 EBITDA Margin: 18.5% Track record o
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