Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — H1 FY2023 Earnings Presentation
21 slides from Reliance Worldwide's earnings presentation, Feb 20, 2023
Slide 1: FY23 Interim Results Presentation
FY23 Interim Results Presentation 20 February 2023 RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (20 February 2023). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for su
Slide 3: HY23 Overview
HY23 Overview Results confirm resilience of RWC’s end markets despite economic headwinds ▪ 20% constant currency sales growth including EZ-Flo ▪ Demand proved to be resilient despite challenging economic conditions ▪ Volumes up 11% including EZ-Flo, underlying volumes excluding EZ-Flo declined 2% ▪
Slide 4: HY23 Financial Highlights
HY23 Financial Highlights All figures in US$ Net sales Adjusted EBITDA Adjusted NPAT $601.3 million $128.1 million $ 67.5 million +15% growth overall1 +2% on pcp -10% on pcp +20% constant currency growth +8% on pcp in constant currency Operating cash flow Net leverage ratio3 Interim Dividend $ 94.3
Slide 5: HY23 Performance Summary
HY23 Performance Summary US$ million HY22 HY23 % Change Commentary ▪ Constant currency sales growth of 20% Net Sales 521.8 601.3 15% 1 ▪ Constant currency sales growth of 6% excl. EZ-Flo Adjusted EBITDA 125.5 128.1 2% ▪ Stronger US$ adversely impacted reported results from Adjusted EBITDA margin (%)
Slide 6: HY23 Adjusted EBITDA
HY23 Adjusted EBITDA Sequential quarterly margin improvement, trend expected to continue in 2nd half Commentary +8% ▪ Constant currency Adjusted EBITDA up 8% ▪ FX translation headwinds due to US$ strength vs A$ and £ ▪ HY23 Adjusted EBITDA margin reflects higher cost inventory as a result of elevate
Slide 7: Segment results: Americas
Segment results: Americas Strong revenue and EBITDA growth from EZ-Flo acquisition Americas Commentary US$m HY22 HY23 % Change ▪ Sales growth of 28% driven by EZ-Flo and price increases Net Sales 333.6 427.3 28% ▪ 6% sales growth excluding EZ-Flo Adjusted EBITDA1, 2 56.9 71.6 26% Adjusted EBITDA mar
Slide 8: Segment results: Asia Pacific
Segment results: Asia Pacific Lower intercompany volumes impacted margins Asia Pacific Commentary A$m HY22 HY23 % Change ▪ Sales growth of 1% Net Sales 151.4 153.6 1% 1 ▪ External sales up 2% Adjusted EBITDA 32.4 28.4 -12% ▪ Continued strong volumes in Australia driven by Adjusted EBITDA margin (%)
Slide 9: Segment results: EMEA
Segment results: EMEA UK sales up 10% on pcp, Continental Europe in line with pcp EMEA Commentary £m HY22 HY23 % Change ▪ EMEA external sales up 6% on pcp in local currency Net Sales 105.9 108.7 3% 1, 2 ▪ UK external sales up 10% on pcp mainly driven Adjusted EBITDA 34.8 34.7 0% by higher prices wit
Slide 10: Cash flow from operations up 57%
Cash flow from operations up 57% Cash flow performance Commentary ▪ Cash flow from operations up 57%, working capital growth US$m HY22 HY23 lower than pcp Reported EBITDA1 119.6 124.3 ▪ Operating cash flow conversion 76% Changes in working capital (59.6) (30.0) ▪ Higher inventory levels due to: Cash
Slide 11: Net debt reduced by $17.6m in the half
Net debt reduced by $17.6m in the half Debt metrics Commentary ▪ Net debt decreased by $17.6m since 30 June 22 US$m 31-Dec-21 31-Dec-22 ▪ Total committed debt facilities of $1,050M: Cash and cash equivalents 26.4 34.9 ▪ Unutilised committed facilities of $527m Gross debt 571.7 568.4 ▪ Weighted avera
Slide 12: Outlook for FY 2023
Outlook for FY 2023 1 RWC is well positioned… ▪ RWC’s exposure globally is predominantly to the less cyclical R&R sector - our products feature in both non-discretionary repair projects and discretionary remodelling ▪ RWC’s brands are widely recognised “go to” products for repair work ▪ Improving op
Slide 13: Management priorities for 2023
Management priorities for 2023 Managing the near term while preparing for long term growth ▪ Managing pricing: current pricing reflects current cost environment but will be monitored and adjusted as necessary ▪ Executing on cost reduction initiatives: ▪ Continuous improvement initiatives: $8m foreca
Slide 14: Plumbing matters. We make it better.
Plumbing matters. We make it better.
Slide 15: Appendix
Plumbing matters Appendix
Slide 16: 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 Track record of creating value from M&A Resilient earnings profile due to R&R exposure A
Slide 17: Strategy Overview
Strategy Overview Creating 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, while providin
Slide 18: Segment performance drivers: Americas
Segment performance drivers: Americas Key indicators: ▪ Leading Indicator of Remodelling Activity (LIRA) ▪ Home value trends: R&R activity tends to track home values over time ▪ New housing permits and commencements ▪ Household formations ▪ Activity in sales of existing homes LIRA inputs and outputs
Slide 19: Segment performance drivers: Asia Pacific
Segment performance drivers: Asia Pacific Australian Residential Approvals1 Key indicators: ▪ Multi-family and stand alone residential approvals 200000 16% drop in annual ▪ New housing commencements 150000 housing approvals in 12 months to 31 ▪ Residential construction drivers: unemployment, governm
Slide 20: Segment performance drivers: EMEA
Segment performance drivers: EMEA Builders Merchant Building Index1 Key indicators: 180 170 ▪ UK repair and maintenance activity statistics 160 150 ▪ Sales performance of UK distributors 140 130 ▪ British Merchants Federation sales trends 120 110 100 90 80 Total Builders Merchants Plumbing, Heating
Slide 21: 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