Reece Limited · ASX:REH
Reece — Investor Presentation (February 2025)
29 slides from Reece's investor presentation, Feb 24, 2025
Slide 1: ASX Announcement: HY25 Investor Presentation
ASX Announcement 24 February 2025 HY25 Investor Presentation Attached for release is Reece Limited’s HY25 investor presentation for the 6 month period ended 31 December 2024. For further information contact: Georgina Freeman Chloe Dougherty Investor Relations Media Relations Reece Group Reece Group
Slide 2: Half Year Results FY25
Half Year Results FY25 6 months ended 31 December 2024
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, 24 February 2025. The information is given in summary form and does not
Slide 4: Presenters
Presenters Peter Wilson Andy Young CHAIRMAN & CEO GROUP CFO 3 Reece. Works for you.
Slide 5: Agenda
Agenda 01 HY25 Overview 02 Strategy & Operational update 03 Financial review 04 Outlook 05 Q&A 4 Reece. Works for you.
Slide 6: HY25 Overview
01 HY25 Overview 5 Reece. Works for you.
Slide 7: Financial overview
Financial overview Market conditions remain challenging - continuing to invest through the cycle. Sales revenue EBITDA EBIT NPAT $4.4b $475m $305m $181m down 3% vs pcp down 10% vs pcp down 17% vs pcp down 19% vs pcp ANZ sales revenue US sales revenue EPS Half year dividend $2.0b US$1.6b * 28c 6.5c f
Slide 8: Strategy & Operational update
02 Strategy & Operational update 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 Building a better world Our purpose and values We will be our Operational Customised service: for our customers by guide our decisions trade’s most Excellence being
Slide 10: Operational Excellence 2030 vision
• Evolving our people promise. Operational • Customised service. Excellence 2030 • Executing the fundamentals of our business. vision Accelerating Innovation • Enhancing digital capabilities within ANZ. • Leveraging technology to support operational efficiency. • Expanding our market leading product
Slide 11: ANZ – investing in our network
ANZ – investing in our network 12 126 56 48 Leveraging extensive 190 network to deliver customer promise. 186 675 Ongoing investment in 41 bolt-on acquisitions, infill +14 16 and upgrades. branches 10 Reece. Works for you.
Slide 12: US – continuing to scale
US – continuing to scale Network expansion and upgrades. Rebrand complete. 261 branches +18 11 Reece. Works for you.
Slide 13: Financial review
03 Financial review 12 Reece. Works for you.
Slide 14: Group financial summary
Group financial summary Sales Revenue (constant currency) EBITDA EBIT $4.4b $475m $305m down 3% vs pcp down 10% vs pcp down 17% vs pcp NPAT Capex / Sales ROCE $181m 2.9% 13.0% down 19% vs pcp up 38bps vs pcp down 244bps vs June 2024 13 Reece. Works for you.
Slide 15: ANZ financial summary
ANZ financial summary Continuing to invest through the cycle to build a stronger business. Sales flat • Underlying volumes impacted by soft housing market. HY25 HY25 HY24 Var. % 31 December 2024 (A$m) • Headline sales supported by bolt-on M&A activity. • Product inflation broadly neutral. Sales reve
Slide 16: US financial summary
US financial summary Expanding the network and investing in core capabilities. USD HY25 Sales down 5% (US dollars) 31 December 2024 (US$m) HY25 HY24 Var. % • Residential New Construction softness impacting Sales revenue 1,596 1,683 (5%) volumes. EBITDA 135 143 (6%) • Ongoing deflation in select cate
Slide 17: Cashflow
Cashflow HY25 • Increased capital expenditure to 31 December 2024 (A$m) HY25 HY24 support: Net cash inflow from operations 256 378 - network expansion and branch refurbishments Capital Expenditure (129) (115) - technology investments Proceeds from sale of assets 3 8 • Completed two bolt-on acquisiti
Slide 18: Balance sheet
Balance sheet Net working capital Debt • NWC to sales ratio 20% (FY24: 18%) driven • Increase in net debt driven by lower operating by FX translation, network expansion and net cash flow. seasonal factors. • Net leverage ratio 0.8x (FY24: 0.6x). • NWC to sales ratio 19% (constant currency • Availabl
Slide 19: Group performance
Group performance Adjusted EBIT & Sales ROCE 500 6,000 5,000 25% 5,000 400 23% 2% -3% 4,000 20% 16% Shareholders equity Sales revenue ($m) Adjusted EBIT ($m) plus net debt ($m) 17% 4,000 15% 300 3,000 13% 15% ROCE (%) 4% 13% 13% 3,000 200 2,000 10% 2,000 100 1,000 5% 1,000 0 0 0 0% 1H21 1H22 1H23 1H
Slide 20: Capital management priorities
Capital management priorities Enable long term profitable growth 01. 02. 03. Invest in the Strong balance Returns to business sheet shareholders Organic Pay down debt; Dividends, investments retain flexibility share buyback. and M&A. for growth. 19 Reece. Works for you.
Slide 21: Outlook
04 Outlook 20 Reece. Works for you.
Slide 22: Outlook ANZ
Outlook ANZ Australian single family private housing under construction Macro headwinds to continue. 110 100 90 Units 000’s 80 • Housing activity expected to remain soft. 70 60 50 • No material change to volume settings 40 anticipated in near term. 30 20 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Sep
Slide 23: Outlook US
Outlook US US single and multi family housing 2,000 under construction Near term remain challenging. 1,800 1,600 Units 000's • Housing units under construction down 1,400 year on year. 1,200 1,000 • Interest rates and affordability continue to 800 create near term headwinds. Dec-18 Dec-19 Dec-20 Dec
Slide 24: Leadership reset to enable the future
Sasha Nikolic Adrian Palumbo James Healy Andy Young Group President & MD CEO, ANZ CEO, US Group CFO Leadership reset to enable the future 23 Reece. Works for you.
Slide 25: Board refresh and succession
Peter Wilson Ross McEwan Chairman & CEO Lead Independent Director Alan Wilson Chairman Emeritus (effective 1 March 2025) Sasha Nikolic Angela Mentis Gavin Street Group President & MD Independent Director Independent Director Board refresh and succession 24 Reece. Works for you.
Slide 26: Confidence in our long term approach
Confidence in our long term approach 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 fundamentals 5 with
Slide 27: Reece. Works for you.
05 26 Reece. Works for you.
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Slide 29: Appendix: Group definitions and non-IFRS measures
Appendix Group definitions and non-IFRS measures Adjusted EBITDA / Adjusted EBIT Adjusted EBITDA and Adjusted EBIT are non-IFRS financial measures used by Reece for internal management reporting Reconciliation from statutory EBIT to EBITDA purposes to assess underlying performance. Return on capital