Reece Limited · ASX:REH
Reece — Investor Presentation (February 2024)
30 slides from Reece's investor presentation, Feb 27, 2024
Slide 1: HY24 Investor Presentation ASX Announcement
ASX Announcement 27 February 2024 HY24 Investor Presentation Attached for release is Reece Limited’s HY24 investor presentation for the 6 month period ended 31 December 2023. For further information contact: Georgina Freeman Siobhan Weaver Investor Relations Corporate Affairs Reece Group Reece Group
Slide 2: Half Year Results FY24
Half Year Results FY24 6 months ended 31 Dec 2023
Slide 3: Disclaimer
Disclaimer The material in this presentation has been prepared by Reece Limited (ABN 49 004 313 133) (“Reece") (ASX:REH) and is general background information about Reece's activities current as at the date of this presentation, 27th February 2024. The information is given in summary form and does n
Slide 4: Presenters
Presenters Peter Wilson Andy Young Group CEO Group CFO 3 Reece. Works for you.
Slide 5: Agenda
Agenda 01 02 03 HY24 overview Strategy recap Operational review 04 05 06 Financial review Outlook Summary 4 Reece. Works for you.
Slide 6: HY24 overview
01. HY24 overview 5 Reece. Works for you.
Slide 7: Financial overview
Financial overview Strong execution supported solid result in subdued environment. Sales Adjusted Adjusted Adjusted revenue EBIT NPAT EPS up 2.5% to $4.5b up 5% to $367m up 6% to $224m up 6% to 35 cents ANZ US* Net leverage ratio Half-year dividend Sales revenue Sales revenue 8 cents per share up 2%
Slide 8: Strategy recap
02. Strategy recap 7 Reece. Works for you.
Slide 9: Our Blueprint
Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise To improve the lives Our purpose and We will be our Operational Customised of our customers values guide our trade’s most Excellence service. and our people by decis
Slide 10: Strategy positions Reece for long term success
Strategy positions Reece for long term success A trusted brand Clear track record Diversified business 1 with a differentiated customer proposition 2 through economic cycles 3 by region, segment & customer; R+R focus Large markets Long term view Well capitalised 4 with attractive long term fundament
Slide 11: Operational review
03. Operational review 10 Reece. Works for you.
Slide 12: Strong operational execution maintained in HY24
Strong operational execution maintained in HY24 Operational Accelerating Investing for Excellence Innovation Profitable Growth • Ongoing focus on being • Innovation initiatives • ANZ network upgrades 2030 brilliant at the fundamentals, supporting trade of and non-plumbing continuous improvement the
Slide 13: ANZ network of scale
ANZ network of scale 10 655 Branches 124 52 44 185 Network density continues to 186 enable customer promise, 39 ongoing investment 15 in network standards. 12 Reece. Works for you.
Slide 14: Building scale in the US
Building scale in the US 240 Branches Continuing to expand and upgrade network, and strong progress on Reece rebrand. 13 Reece. Works for you.
Slide 15: Financial review
04. Financial review 14 Reece. Works for you.
Slide 16: Group financial highlights
Group financial highlights Statutory Statutory Statutory Statutory Statutory Sales EBITDA EBIT NPAT EPS up 2.5% up 13% up 13% up 20% up 20% to $4.5b to $526m to $367m to $224m to 35 cents From $4.4b From $466m From $325m From $186m From 29 cents Constant Adjusted Adjusted Adjusted Adjusted currency
Slide 17: ANZ financial highlights
ANZ financial highlights Focus on operational disciplines in softening trading environment. Sales up 2% • Backlog continued to support activity. HY24 31 December 2023 HY24 HY23 Var. HY22 • Growth driven by inflation which continued (A$m) to moderate during HY24. Sales revenue 1,972 1,928 2% 1,733 A
Slide 18: US financial highlights
US financial highlights HY24 AUD 31 December 2023 HY24 HY23 Var. HY22 Ongoing operational uplift in challenging (A$m) market conditions. Sales revenue 2,566 2,500 3% 1,867 Adjusted EBITDA 219 202 8% 148 Sales flat (US dollars) Adjusted EBITDA margin 8.5% 8.1% 46bps 7.9% • Trading environment subdued
Slide 19: Cashflow
Cashflow HY24 31 December 2023 (A$m) HY24 HY23 Adjusted EBITDA 526 488 • Improved operating cash flow. Net movements in working capital (incl. FX) 4 (186) • Net working capital to sales 18% Non-cash items and BAC income (1) 15 (FY23: 19%). Income tax paid (105) (90) • Increased investment in priorit
Slide 20: Balance sheet
Balance sheet HY24 31 December 2023 (A$m) HY24 FY23 Cash 337 373 Trade and other receivables 1,230 1,338 • Strong balance sheet provides flexibility through Inventories 1,441 1,505 the cycle. Other current assets - 3 • US$300m USPP note issuance, diversifying Total current assets 3,008 3,219 funding
Slide 21: Capital management priorities
Capital management priorities Enable sustainable long term growth 01. 02. 03. Invest in growth Strong balance Shareholder sheet returns Organic With flexibility for Dividends, investments and growth. share buyback. M&A. 20 Reece. Works for you.
Slide 22: Outlook
05. Outlook 21 Reece. Works for you.
Slide 23: H2 Outlook
H2 Outlook • Anticipating subdued demand environment to continue; softening in ANZ. • Medium to long term industry fundamentals remain supportive. • Reece approach remains unchanged. • Focus on customer proposition and being brilliant at the fundamentals. • Disciplined approach to costs while mainta
Slide 24: Summary
06. Summary 23 Reece. Works for you.
Slide 25: Summary
Summary Solid Subdued Long term Investing for Result environment Focus the Future 24 Reece. Works for you.
Slide 26: Reece Group
25 reece group"
Slide 27: Appendix and supplementary information
Appendix and supplementary information 26 Reece. Works for you.
Slide 28: Key metrics
Key metrics Reconciliation from Statutory EBIT to Adjusted EBIT Reconciliation from Statutory NPAT to Adjusted NPAT HY24 HY24 HY24 HY23 Var. HY24 HY23 Var. 31 December 2023 (A$m) 31 December 2023 (A$m) EBIT (statutory) 367 325 13% NPAT (statutory) 224 186 20% Add back/deduct: Add back/deduct (tax ef
Slide 29: Group definitions
Group definitions EBITDA adjusted to exclude government incentive scheme income (BAC income), impairment expenses and business 1 Adjusted EBITDA acquisition costs 2 Net leverage ratio Net debt over 12-month rolling EBITDA, calculated on a pre-AASB16 Leases basis 3 BAC income Income from Boosting App
Slide 30: FX impact on sales
FX impact on sales 29 Reece. Works for you.