Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Investor Presentation (October 2024)
41 slides from Reliance Worldwide's investor presentation, Oct 24, 2024
Slide 1: ASX Announcement: Investor presentation
ASX Announcement 24 October 2024 Investor presentation Reliance Worldwide Corporation Limited (ASX: RWC) is conducting an investor presentation from 2.30pm today (Sydney time). A copy of the presentation slides is attached. For personal use only For enquiries, please contact: Phil King Group Investo
Slide 2: Investor Briefing
For personal use only Investor Briefing 24 October 2024
Slide 3: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (24 October 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
Slide 4: Agenda
Agenda For personal use only 1. Group strategy overview 2. Regional spotlight • Americas • APAC • EMEA 3. Manufacturing footprint review 4. Group-wide operational initiatives 5. Trading outlook update 3
Slide 5: Speaker introductions
Speaker introductions For personal use only Heath Sharp Will Kilpatrick Nicole Sumich Dixon Thuston Andrew Johnson CEO EVP & President, Americas EVP & President, Asia Pacific EVP of & President, EMEA CFO 4
Slide 6: RWC's Vision | Complete plumbing global leader
RWC’s Vision | Complete plumbing global leader Everything rough plumbing For personal use only 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 5
Slide 7: Strategy Overview
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 8: RWC's model for growth
RWC’s model for growth Organic growth initiatives in combination with acquisitions that collectively enhance and broaden RWC’s product portfolio and customer reach For personal use only In any given period, targeted base business growth rate with upside Revenue growth since IPO in 2016 has been driv
Slide 9: 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 8
Slide 10: Estimating the total addressable market
Estimating the total addressable market Fire Hydrant Fire Fire Sprinkler For personal use only Fire Hose Reel Chilled Water Hot Water Mechanical (HVAC) Condensed Water Geothermal Electrical Hot & Cold Water Water In Recyclable Water Sanitary Drainage Est Market Construction market Sewer Drainage Ser
Slide 11: Target Addressable Market by region
Target Addressable Market by region RWC has healthy share of market with room for growth For personal use only Est. Market size1 RWC Share RWC share Market size Americas $20B ~5% APAC $2B ~15% EMEA $4.5B ~9% Total Market: $26.5B 1. Market size estimated at MSP for all water-in and water-out rough pl
Slide 12: Regional Strategy Summary
For personal use only Regional Strategy Summary 11
Slide 13: Strategic growth initiatives
Strategic growth initiatives Global strategy, local execution For personal use only Commercial Americas: Residential repair & plumbing through a Larger remodel and Growth across three areas remodel through combination of new residential new continued channel product development construction partner
Slide 14: Americas
For personal use only Americas Market leading brands driving growth initiatives 13
Slide 15: 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 Product Mix US$878m America’s growth opportunities are centred on three Net Sales pillars: Push To Con
Slide 16: Americas | Significant opportunity in end markets
Americas | Significant opportunity in end markets Americas Target Addressable Market RWC Americas net sales: US$878M For personal use only RWC Share RWC share Market size Commercial Commercial Net sales by New Build + end market New ~2% Residential R&R Repair & Residential Remodel ~2% New Build Repa
Slide 17: Americas | Key brands and products
Americas | Key brands and products Repair / Remodel Commercial New Residential For personal use only Key Brands Key Products Trusted brands focused on products that make jobs easier for the Pros and DIY 16
Slide 18: Americas | Repair and remodel
Americas | Repair and remodel For personal use only Brands Products Push to connect fittings PEX pipe Crimp fittings Pipe supports Appliance installation Water heater install / repair Key growth areas: eCommerce, product development, service excellence 17
Slide 19: Americas | Commercial
Americas | Commercial For personal use only Brands Products Outlet boxes Water heater accessories TestRite HydroFlame Pipe and fittings Pressure regulating valves Key growth areas: Product development, bolt-on acquisitions 18
Slide 20: Americas | Overview of commercial job phases
Americas | Overview of commercial job phases We aim to have strong branded products in all phases of commercial jobs For personal use only Commercial Job Site Construction Phases Context Phase 0 Pre-Planning 1 Concrete Pour 2 Drain Waste & 3 Potable Water 4 Trim Out 5 Fixture Top Vent Systems Out Bu
Slide 21: Americas | New residential
Americas | New residential For personal use only Brands Products Fittings PEX pipe Supply lines & stop valves Pipe supports Outlet boxes Plumbing valves Key growth area: focused efforts leveraging product portfolio and channel relationships to win in largely untapped market 20
Slide 22: Americas | Key brands and products
Americas | Key brands and products Repair / Remodel Commercial New Residential For personal use only Key Brands Key Products Trusted brands focused on products that make jobs easier for the Pros and DIY 21
Slide 23: APAC: Leveraging RWC + Holman
For personal use only APAC Leveraging RWC + Holman 22
Slide 24: APAC | Overview
APAC | Overview Holman significantly changes APAC’s growth profile RWC Holman Channel mix Strategy For personal use only Pre-Holman A$241m Category leadership A$192m Net Net Sales3 WP ▪ Lead the PEX market through wholesale partners, Sales1 by bringing in global innovation and solutions that add mos
Slide 25: APAC | A compelling proposition
APAC | A compelling proposition RWC and Holman bring together an unrivalled combination of four key elements For personal use only 1 2 3 4 Global expertise in Proven service and 75+ yrs. of innovation Well-known brands retail and wholesale execution with and local plumbing that are trusted by and ab
Slide 26: APAC | Delivering RWC & Holman revenue synergies
APAC | Delivering RWC & Holman revenue synergies The market has responded well to the acquisition. Activity on revenue synergies is underway with positive engagement and momentum For personal use only Retail Wholesale Specialist Hardware Plumbing MRO Retail 25
Slide 27: APAC | SharkBite now available in Bunnings stores
APAC | SharkBite now available in Bunnings stores Rollout to 76 Bunnings large-format stores to be completed by end of 2024 For personal use only 26
Slide 28: APAC | Launch of SharkBite in Bunnings
APAC | Launch of SharkBite in Bunnings An opportunity for a brand refresh For personal use only ▪ 69 fittings for Pex and Copper, Pex pipe, and ball valves ▪ The Original Push-to-Connect is the key tagline and point of difference ▪ Coincides with “Lead Free” providing points of difference with in-ai
Slide 29: EMEA: Driving to operational excellence
For personal use only EMEA Driving to operational excellence 28
Slide 30: EMEA | Overview
EMEA | Overview EMEA is focused on driving operational efficiency ahead of market recovery Category mix1 Strategy For personal use only £209m Pursue organic growth initiatives Net Sales1 26% ▪ Targeted new product development opportunities 2% 58% leveraged across existing sales channels 14% £61m Adj
Slide 31: EMEA | Focused on business improvement
EMEA | Focused on business improvement Current lower volume environment is allowing a focus on further lifting operating performance For personal use only Implementation of long-term structural change in the cost base of the EMEA business: ▪ Organisation re-design across spans and layers, reduced co
Slide 32: EMEA | Looking beyond FY25
EMEA | Looking beyond FY25 EMEA is well-positioned for a recovery in volumes For personal use only We will continue to pursue selected growth opportunities in EMEA ▪ UK commercial plumbing ▪ UK residential new construction ▪ Continental Europe expansion of residential plumbing and heating presence i
Slide 33: Manufacturing Strategy
For personal use only Manufacturing Strategy 32
Slide 34: Global manufacturing locations
Inthe UK we manufacture: - Push-to-connect fittings - Pipes l oO c at i re) n Ss Water filtration & drinks dispense fittings In China we manufacture: ~ Appliance installation & repair products: A 7 EZFIO In Spain Inthe United States we manufacture: ~ we manufacture: ~ Push-to-connect: ~ Push-to-conn
Slide 35: Manufacturing footprint
Manufacturing footprint Assessment of future manufacturing footprint options, with a regional focus along with global co-ordination For personal use only ▪ Goal is to ensure RWC maintains high quality and achieves lowest cost of manufacture ▪ Agility and speed-to-market also inform manufacture versu
Slide 36: Global initiatives Overview
For personal use only Global initiatives Overview 35
Slide 37: Global initiatives in focus for 2025
Global initiatives in focus for 2025 Execution excellence Focus area Activity Outcome For personal use only ▪ Keep safety our No.1 priority ▪ Everyone safe, every day People, Safety & Culture ▪ Progress our ESG priorities ▪ Positive impact on our people, our communities and the environment ▪ Continu
Slide 38: Outlook
For personal use only Outlook 37
Slide 39: FY25 First Half Outlook: guidance maintained
FY25 First Half Outlook: guidance maintained1 Group Prior Guidance Current Guidance Status External Sales Expected to be broadly flat, within a range of up or down by Unchanged For personal use only low single digit percentage points on pcp (excluding Holman and Supply Smart) Operating Margin Improv
Slide 40: Conclusion
For personal use only Conclusion 39
Slide 41: Plumbing Matters. We Make It Better.
Plumbing Matters. We Make It Better.
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