Slide 1: 1H22 Investor Presentation ASX Announcement
ASX Announcement 24 February 2022 1H22 Investor Presentation Attached for release is Reece Limited’s first half FY22 results presentation for the 6 month period ended 31 December 2021. For further information contact: Siobhan Weaver Investor Relations E: siobhan.weaver@reece.com.au T: 0477 480 813 C
Slide 2: Half Year Results 2022
Half Year Results 2022 6 months ended 31 December 2021
Slide 3: Disclaimer
Reece Group – Half Year Results 2022 2 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. The information is given in summ
Slide 4: Presenters
Reece Group – Half Year Results 2022 3 Presenters Peter Wilson Andrew Cowlishaw Group Chief Group Chief Executive Officer Financial Officer
Slide 5: What we'll share today
Reece Group – Half Year Results 2022 4 What we’ll share today 01 02 03 HY22 summary HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 6: Navigating an ever-changing environment
Reece Group – Half Year Results 2022 5 Navigating an ever-changing environment Complex Constrained Inflationary Strong Strong COVID global supply impacts demand execution by environment chains setting Reece team
Slide 7: Financial highlights
Reece Group – Half Year Results 2022 6 Financial highlights Strong result in a complex environment; significant inflation tailwind Sales Normalised EBIT NPAT EPS Revenue EBITDA* up 17% up 14% up 16% up 28% up 28% to $3.6b to $397m to $275m to $157m to 24 cents Dividend ANZ US 7.5 cents per share Sal
Slide 8: What we'll share today
Reece Group – Half Year Results 2022 7 What we’ll share today 01 02 03 HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 9: Our focus
02 Our focus
Slide 10: Our Blueprint
Reece Group – Half Year Results 2022 9 Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise
Slide 11: Our Blueprint
Reece Group – Half Year Results 2022 10 Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise Our purpose and We will be the Brilliant Customised To improve the lives values guide our trade's most Fundamentals service o
Slide 12: What we'll share today
Reece Group – Half Year Results 2022 11 What we’ll share today 01 02 03 HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 13: Business Highlights HY22
03 Business Highlights HY22
Slide 14: Business highlights ANZ
Business highlights eh i Why % NY
Slide 15: Strong execution to manage macro challenges
Reece Group – Half Year Results 2022 14 Strong execution to manage macro challenges Brilliant Investing for Delivering Fundamentals Growth Innovation • Managed inflation, supply • Digital upgrades, • Continued to chain, COVID-19 enhanced customer progress interruptions experience breakthrough opport
Slide 16: Enabling our people to be their best
Reece Group – Half Year Results 2022 Enabling our people Brilliant Fundamentals to be their best Supporting our people to remain resilient, building the leaders of tomorrow
Slide 17: Strong management of supply chain disruption
Reece Group – Half Year Results 2022 Strong management of Brilliant Fundamentals supply chain disruption Leveraged scale and flexible model to ensure service maintained
Slide 18: Australia & New Zealand network
Reece Group – Half Year Results 2022 17 Australia & New Zealand network Brilliant Fundamentals 11 122 52 644branches 44 184 179 37 15
Slide 19: Enhancing our customer experience
Reece Group – Half Year Results 2022 18 Enhancing our customer experience Investing for Growth Flex POS maX FlexPOS ReeceConnect • Upgraded customer functionality • Nextgen Point of Sale rollout • Expanded ecosystem with drove increase in weekly active users continued new integrations • Enhanced sec
Slide 20: Business highlights US
Business highlights US
Slide 21: Investing to enable long term growth
Reece Group – Half Year Results 2022 20 Investing to enable long term growth Brilliant Investing for Delivering Fundamentals Growth Innovation • Strong management of • Store rollout and • Initial focus on inflation, supply chain, upgrade program first two COVID-19 progressing strategy pillars US • P
Slide 22: US network
Reece Group – Full Year Results 21 US network Investing for Growth 201 branches
Slide 23: Enhancing the digital customer experience
Reece Group – Half Year Results 2022 Enhancing the digital Brilliant Fundamentals customer experience Launched maX tailored for the US market
Slide 24: Launching the Reece brand
Reece Group – Half Year Results 2022 23 Launching Brilliant Fundamentals the Reece brand Local Reece presence a symbolic milestone
Slide 25: What we'll share today
Reece Group – Half Year Results 2022 24 What we’ll share today 01 02 03 HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 26: HY22 Financial performance
04 HY22 Financial performance
Slide 27: Financial highlights
Reece Group – Half Year Results 2022 26 Financial highlights Sales Normalised EBIT NPAT EPS Revenue EBITDA* up 17% up 14% up 16% up 28% up 28% to $3.6b to $397m to $275m to $157m to 24 cents from $3.1b from $349m from $236m from $123m Half year 7.5 cents per share, fully franked Normalised down 40bp
Slide 28: ANZ segment performance
Reece Group – Half Year Results 2022 27 ANZ segment performance • Record result for sales revenue, HY22 Var. (%) 1HY22 1HY21 1HY20 EBITDA and EBIT 31 December 2021 (A$m) vs HY21 • Sales up 11% reflecting solid demand • Estimated product inflation dynamic Sales revenue 1,733 1,564 11% 1,465 H1 8%-9%
Slide 29: US segment performance
Reece Group – Half Year Results 2022 28 US segment performance AUD USD • Sales up 24% HY 22 • Estimated 1HY Inflation 31 December HY22 HY21 Var. (%) HY22 HY21 Var. (%) low-mid teens 2021 ($m) • Normalised EBITDA up 37 bps Sales revenue 1,867 1,509 24% 1,364 1,100 24% • Immaterial impact from FX Norm
Slide 30: Successful refinancing of debt
Reece Group – Half Year Results 2022 29 Successful refinancing of debt • Diversity of maturity dates • Reduced interest expense $50 million three year • Flexibility to draw down in AUD or USD revolving credit facility; • Fully repaid Term Loan B $300 million four year • $1.25 billion syndicated mult
Slide 31: Cashflow
Reece Group – Half Year Results 2022 30 HY22 Cashflow 31 December 2021 (A$m) HY22 HY21 Normalised EBITDA* 397 349 Net Working Capital Net movements in working capital (348) (130) (A$m) Non-cash items in EBITDA (3) 3 Income tax paid (88) (85) Finance costs (42) (38) 1200 0.25 Cash inflow/ (outflow) f
Slide 32: Net working capital
Reece Group – Half Year Results 2022 31 Net working capital Net working capital HY22 (A$m) NWC 30 June 2021 1,198m 1,800 1,600 1,400 Inventory 283m 1,200 1,000 Strategic inventory 800 investment in current environment Receivables 63m 600 400 200 Payables 3m - NWC 30/6/21 Receivables Inventory Payabl
Slide 33: Balance Sheet
Reece Group – Half Year Results 2022 32 Balance Sheet Financial Net Debt Financial Net Debt* (A$m) 1,000 1.6 900 1.4 (A$m) HY22 FY21 800 1.2 700 600 1.0 Cash and cash 118 829 500 0.8 equivalents 400 0.6 300 0.4 200 Senior debt 1,016 1,336 100 0.2 0 0.0 HY22 FY21 Net debt includi ng derivative and ca
Slide 34: What we'll share today
Reece Group – Half Year Results 2022 33 What we’ll share today 01 02 03 HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 35: Economic commentary
05 Economic commentary
Slide 36: ANZ – headline indicators solid in near term
Reece Group – Full Year Results 35 ANZ – headline indicators solid in near term Dwelling Approvals Dwelling Completions (000s) (000s) 239 244 219 213 215 211 231 223 232 223 202 221 193 193 195 200 181 187 162 165 174 148 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY13 FY14 FY15 FY16 FY1
Slide 37: US – underlying market drivers healthy
Reece Group – Full Year Results 36 US – underlying market drivers healthy Single + multi-family housing starts Leading indicator of remodeling activity (000s) (US$bn / ROC%) Single Famil y 550 15.0% 12.30% Mult i-Family 500 9.2% 9.0% 10.0% 450 8.80% 6.5% 7.6% 440 6.3% 5.8% 460 450 4.7% 5.0% 3.4% 3.2
Slide 38: What we'll share today
Reece Group – Half Year Results 2022 37 What we’ll share today 01 02 03 HY22 Our HY22 overview focus highlights 04 05 06 HY22 Financial Economic Summary performance commentary
Slide 39: Summary
06 Summary
Slide 40: Summary
Reece Group – Half Year Results 2022 39 Summary Record Long-term Positive Investing for Result Focus Near-term the Future External Setting
Slide 41: Supplementary information
Reece Group – Half Year Results 2022 40 Supplementary information
Slide 42: Normalised NPAT reconciliation
Reece Group – Half Year Results 2022 41 Normalised NPAT reconciliation 180 13 164 160 157 -6 140 120 100 80 60 40 20 0 NPAT Non-recurring earnings Refinance costs Normalised NPAT
Slide 43: Reece Group
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