Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Investor Presentation (November 2024)
40 slides from Reliance Worldwide's investor presentation, Nov 1, 2024
Slide 1: Investor Presentation
Investor Presentation November 2024
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (1 November 2024). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for sub
Slide 3: RWC's Vision | Complete plumbing global leader
RWC’s Vision | Complete plumbing global leader 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 3
Slide 4: Strategy Overview
Strategy Overview RWC seeks to create value through product leadership 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, enable the DIYer, whi
Slide 5: 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 In any given period, targeted base business growth rate with upside Revenue growth since IPO in 2016 has been driven by a from specific
Slide 6: RWC is well positioned for long-term growth
RWC is well positioned for long-term growth 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 6
Slide 7: Construction market: estimating the total addressable market
Estimating the total addressable market Fire Hydrant Fire Fire Sprinkler 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 Services Behind the Wall:
Slide 8: Target Addressable Market by region
Target Addressable Market by region RWC has healthy share of market with room for growth 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 plumbing across R&R, new
Slide 9: Global locations and manufacturing
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: ps In Brisbane Australia we manufacture: Inthe United States we manufacture: ~ Push-to-connect: ~ Push-to-
Slide 10: Manufacturing footprint
Manufacturing footprint Assessment of future manufacturing footprint options, with a regional focus along with global co-ordination ▪ Goal is to ensure RWC maintains high quality and achieves lowest cost of manufacture ▪ Agility and speed-to-market also inform manufacture versus outsource ▪ Increasi
Slide 11: Strategic growth initiatives
Strategic growth initiatives Global strategy, local execution 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 expansion and bolt-on
Slide 12: Americas
Americas Market leading brands driving growth initiatives 12
Slide 13: 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 Product Mix US$878m America’s growth opportunities are centred on three Net Sales pillars: Push To Connect ▪ Residential rep
Slide 14: Americas | Significant opportunity in end markets
Americas | Significant opportunity in end markets Americas Target Addressable Market RWC Americas net sales: US$878M 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 Repair & Remodel Residenti
Slide 15: Americas | Key brands and products
Americas | Key brands and products Repair / Remodel Commercial New Residential Key Brands Key Products Trusted brands focused on products that make jobs easier for the Pros and DIY 15
Slide 16: Americas | Repair and remodel
Americas | Repair and remodel 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 16
Slide 17: Americas | Commercial
Americas | Commercial Brands Products Outlet boxes Water heater accessories TestRite HydroFlame Pipe and fittings Pressure regulating valves Key growth areas: Product development, bolt-on acquisitions 17
Slide 18: 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 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 Build out of detailed Co
Slide 19: Americas | New residential
Americas | New residential 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 19
Slide 20: APAC
APAC Leveraging RWC + Holman 20
Slide 21: APAC | Overview
APAC | Overview Holman significantly changes APAC’s growth profile RWC Holman Channel mix Strategy 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 most value to the end use
Slide 22: APAC | A compelling proposition
APAC | A compelling proposition RWC and Holman bring together an unrivalled combination of four key elements 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 ability to deliver dedic
Slide 23: 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 Retail Wholesale Specialist Hardware Plumbing MRO Retail 23
Slide 24: EMEA
EMEA Driving to operational excellence 24
Slide 25: EMEA | Overview
EMEA | Overview EMEA is focused on driving operational efficiency ahead of market recovery Category mix1 Strategy £209m Pursue organic growth initiatives Net Sales1 26% ▪ Targeted new product development opportunities 2% 58% leveraged across existing sales channels 14% £61m Adjusted Operational Exce
Slide 26: EMEA | Focused on business improvement
EMEA | Focused on business improvement Current lower volume environment is allowing a focus on further lifting operating performance Implementation of long-term structural change in the cost base of the EMEA business: ▪ Organisation re-design across spans and layers, reduced complexity and focused m
Slide 27: EMEA | Looking beyond FY25
EMEA | Looking beyond FY25 EMEA is well-positioned for a recovery in volumes 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 in retail EMEA will con
Slide 28: FY24 Financial Performance Summary
FY24 Financial Performance Summary 28
Slide 29: FY24 Financial Highlights
FY24 Financial Highlights All figures in US$ Net sales Adjusted EBITDA +0.2% growth overall1 In line with pcp $1,245.8 -2.4% excluding Holman $274.6 Underlying Adjusted EBITDA million million margin: 22.3%2 Cash generated Adjusted NPAT -5.7% on pcp from operations +7% versus pcp $146.9 $23 million i
Slide 30: FY24 Performance Summary
FY24 Performance Summary Year ended: 30 June 2024 30 June 2023 % Change US$m Net sales 1,245.8 1,243.8 0.2% Commentary Reported EBITDA 247.5 276.1 (10.4%) ▪ Net sales up 0.2% on pcp, included a partial contribution from Holman 1 Adjusted for one-off items 27.1 (1.5) ▪ Excluding Holman, sales were 2.
Slide 31: Segment results: Americas
Segment results: Americas Strong operating earnings growth Americas Commentary US$m FY24 FY23 % Change ▪ Weaker demand from discretionary remodel end-markets adversely impacted sales, but was largely offset by new product revenues: Net Sales 877.7 890.1 (1.4%) ▪ Continued rollout of SharkBite Max, n
Slide 32: Segment results: Asia Pacific
Segment results: Asia Pacific Transfer of SharkBite manufacturing to the US impacted volumes and margins Asia Pacific Commentary A$m FY24 FY23 % Change ▪ Sales were up 2.6%, including A$48.8m in sales from Holman Net Sales 290.1 282.7 2.6% ▪ Excluding Holman, sales were down 14.6%: inter-company sal
Slide 33: Segment results: EMEA
Segment results: EMEA Margins impacted by lower volumes in UK and Continental Europe EMEA Commentary £M FY24 FY23 % Change ▪ Sales 7.3% lower than pcp, with external sales 9.6% lower than pcp: Net Sales 209.4 226.0 (7.3%) ▪ UK external sales down 9.2% on pcp ▪ UK plumbing and heating sales down 6.2%
Slide 34: FY24: strong operating cash flow performance
FY24: strong operating cash flow performance Year ended: 30 June 2024 30 June 2023 Variance Cash flow performance US$m US$m FY24 FY23 Cash generated from operations 314.2 292.7 7.3% Adjusted EBITDA 274.6 274.6 Income tax paid (39.8) (42.4) -6.1% Cash generated from operations 314.2 292.7 Net cash in
Slide 35: Working capital management underpinned cash flow
Working capital management underpinned cash flow Net working capital US$m 30-Jun-24 30-Jun-23 Commentary ▪ Net working capital reduced by $16.4m during FY24 due to reduced Trade and other receivables 238.8 246.0 inventory levels, lower trade receivables and higher trade payables Inventories (excl. H
Slide 36: Balance sheet strengthened through net debt reduction
Balance sheet strengthened through net debt reduction Debt metrics Amount Drawn US$m 30-Jun-24 30-Jun-23 US$ million Facility Limit Expiry at 30 June 24 Cash and cash equivalents 19.9 16.6 Bank Facilities Gross debt 441.0 451.7 Tranche B/Facility B 320.0 91.0 Nov-26 1 Net debt 421.1 435.0 Tranche A1
Slide 37: 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 low single digit percentage points on pcp (excluding Holman and Supply Smart) Operating Margin Improvement in consolidated
Slide 38: Global initiatives in focus for 2025
Global initiatives in focus for 2025 Execution excellence Focus area Activity Outcome ▪ 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 ▪ Continual focus on delivery p
Slide 39: 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 40: Macro-economic indicators
Macro-economic indicators Americas EMEA APAC New Orders for Construction: All New Housing Australian New Dwelling Commencements2,3 4,250 (£m)1 4,000 3,750 200,000 3,500 150,000 3,250 100,000 3,000 50,000 2,750 2,500 0 Jul to Oct to Jan to Apr to Jul to Oct to Jan to Apr to Jul to Oct to Jan to Apr t
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