Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Jefferies Asia Forum 2021
34 slides from Reliance Worldwide's conference presentation, Sep 9, 2021
Slide 1: ASX Announcement: Presentation at Jefferies Asia Forum
ASX Announcement For personal use only 9 September 2021 Presentation at Jefferies Asia Forum Reliance Worldwide Corporation Limited (ASX: RWC) advises that Heath Sharp, Group CEO, and Andrew Johnson, Group CFO, will be presenting at the Jefferies Asia Forum on 9 September 2021. A copy of the present
Slide 2: Jefferies Asia Forum
For personal use only Jefferies Asia Forum 9 September 2021 Heath Sharp Chief Executive Officer Andrew Johnson Chief Financial 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 (9 For personal use only September 2021). It is information given in summary form and does not purport to be complete. The presentation is not an offe
Slide 4: Agenda
For personal use only Agenda 1. RWC Overview 4 2. Strategy Overview 8 3. Regional Strategies 12 4. FY21 Performance 20 5. FY22 Outlook 24 3
Slide 5: RWC Overview
For personal use only RWC Overview 4
Slide 6: RWC is a leader in water flow and control products
RWC is a leader in the design, manufacture and supply of water flow and control products and solutions for use in the “behind the wall” plumbing sector For personal use only ▪ The leader in brass and plastic push to connect (“PTC”) fittings in key geographies ▪ Majority of sales are to the repair an
Slide 7: RWC product portfolio
RWC product portfolio RWC’s brands transform performance and efficiency for plumbing and heating and For personal use only specialist industries around the world Fittings Pipes Valves Integrated FluidTech Installation Solutions 57% of Net Sales: 12% of Net Sales 12% of Net Sales 9% of Net Sales 10%
Slide 8: RWC 5-Year Post-IPO Performance History
RWC 5-Year Post-IPO Performance History For personal use only Net Sales A$m Adjusted EBITDA A$m Adjusted NPAT A$m 5 Year CAGR: 22% 400 5 Year CAGR: 30% 5 Year CAGR: 34% 349 250 1,600 350 212 1,400 1,341 300 277 200 1,162 251 1,200 1,104 250 158 1,000 150 200 130 800 769 151 150 100 602 121 600 79 66
Slide 9: Strategy Overview
For personal use only Strategy Overview 8
Slide 10: Creating Value through Product Leadership
Creating Value through Product Leadership Create and deliver plumbing products that are the first choice for users Solutions for xa butor <w/ Operational the end-user ~.” Relationsh & Excellence Smart product solutions that improve contractor Increasing value for the distributor while providing Prem
Slide 11: End Use by Region
End Use by Region Core RMI market represents significant share of global end use segments For personal use only 10 Note* - FluidTech segment includes water treatment, drinks and dispense, air and pneumatics, and blown fibre applications; Segment splits based on Group FY20 net external sales
Slide 12: Regional Strategies
For personal use only Regional Strategies 11
Slide 13: Americas: stable historical growth and key fundamentals
Americas: stable historical growth and key fundamentals support core repair segment For personal use only 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 Ag
Slide 14: Americas growth plan
Americas growth plan Utilise strength of brand, product offering and focused innovation approach across For personal use only distribution network to expand market share Goals Representative initiatives ▪ Commercial end market selling investment Own the ▪ Extend brands to new categories Demand… proj
Slide 15: US Growth Estimate – Potential Upside
US Growth Estimate – Potential Upside In any given period, targeted base business growth rate with upside from specific For personal use only 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 Bas
Slide 16: EMEA strategy
EMEA strategy Enabling specific initiatives in UK and Europe to accelerate, expand and access For personal use only 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
Slide 17: UK Growth Estimate – Potential Upside
UK Growth Estimate – Potential Upside In any given period, targeted base business growth rate with upside from specific For personal use only 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 Poten
Slide 18: APAC: Australian Core Growth Initiatives
APAC: Australian Core Growth Initiatives Evolving market conditions and new opportunities drive our growth in our core market For personal use only End users and channels What We Deliver Value Creation Wholesale ▪ Full Wholesaler support package including training and full customer care service We s
Slide 19: APAC growth strategies and priorities
APAC growth strategies and priorities Driving core product initiatives to serve existing markets and emerging opportunities For personal use only Goals APAC plans Achieve profitable growth in ▪ Australia/New Zealand: expand share core, new build markets in and offering in core market piping Australi
Slide 20: FY21 Financial Performance
For personal use only FY21 Financial Performance 19
Slide 21: RWC financial snapshot for year ended June 2021
RWC financial snapshot for year ended 30 June 2021 For personal use only Net sales Adjusted EBITDA Adjusted NPAT $1,341 million $349.2 million $211.9 million +15% growth overall1 +39% on pcp +63% on pcp +25% in constant currency Operating cash flow Net debt reduction Final dividend $334.3 million $1
Slide 22: Strong operating cash flow performance
Strong operating cash flow performance Cash generated enabled further reduction in net debt and higher FY21 dividend For personal use only Cash Flow from $m Operations Net Debt/EBITDA Total Dividends Declared ($m) 1.8 120 400 1.67 1.6 102.7 350 334.3 100 1.39 1.4 300 278.3 1.2 80 71.1 250 1.0 200 60
Slide 23: FY21 Revenues reflect COVID and US freeze impacts
FY21 Revenues reflect COVID and US freeze impacts Strong growth on a 2-year basis in all regions Americas Quarterly Revenues US$m For personal use only 150 100 RWC Quarterly Revenues A$m 50 0 350 Q1 Q2 Q3 Q4 Asia Pacific Quarterly Revenues A$m 300 60 250 40 20 200 0 Q1 Q2 Q3 Q4 150 EMEA Quarterly Re
Slide 24: RWC's Capital Management approach
RWC’s Capital Management approach Capital management approach aims to minimise the cost of capital and ensure For personal use only ongoing access to funding to meet future requirements Strong Financial Value creation Capital management Focus Improving long term Organic Capital Capital Consistent Ca
Slide 25: Outlook
For personal use only Outlook 24
Slide 26: Outlook for FY 2022
Outlook for FY 2022 1 RWC will provide expanded quarterly trading updates from the first quarter of FY2022 For personal use only PRICES: ▪ Average price rises announced in FY2021 of 6% will mitigate inflation impacts ▪ Price increases will flow through to Sales in FY22, regional variations will refl
Slide 27: Regional outlook for FY 2022
Regional outlook for FY 2022 1 For personal use only AMERICAS: ▪ COVID brought about a step change in residential remodelling activity in FY21 ▪ Home remodelling activity is expected to remain strong given fundamentals in core US residential segments ▪ FY22 sales (excl freeze) expected to continue t
Slide 28: Summary
For personal use only Summary 27
Slide 29: Summary
Summary RWC is well positioned for future growth and resilience of the business has been For personal use only demonstrated through the COVID-19 pandemic ▪ RWC is focused on creating value through product leadership • Solutions for the end-user: improving contractor productivity, enabling the DIYer
Slide 30: Q&A
For personal use only Q&A
Slide 31: Appendix
For personal use only Appendix 30
Slide 32: RWC Americas snapshot (in USD)
RWC Americas snapshot (in USD) Well positioned brands across a diverse product range serving multiple segments For personal use only Category Mix Channel Mix Brands Other Export OEM Fittings $630m USD Plumbing Net Sales1 Fittings PTC Pipes Wholesale Valves Retail FluidTech $120m USD Adjusted Integra
Slide 33: EMEA business snapshot
EMEA business snapshot Exceptionally strong brands in a diversified set of markets and geographies For personal use only Category mix2 Geographic mix2 Brands £217m Net Sales1 FluidTech Continental Europe Managing UK £72m Plumbing Adjusted EBITDA1 15 & Heating End Use Segments Footprint 1,100+ Employ
Slide 34: RWC APAC snapshot
RWC APAC snapshot Exceptionally strong brands in a diversified set of markets, and geographies For personal use only Category Mix – AUS/NZ Category Mix - Asia Brands Other Fittings A$277m PTC Fittings Fluid Tech Net Sales1 Other Pipe Fluid Tech Managing Brass PTC Other A$66m EBITDA 15 Valves Pipe En