Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — H1 2019 Earnings Presentation
21 slides from Reliance Worldwide's earnings presentation, Feb 25, 2019
Slide 1: 1H FY19 Results Presentation
RELIANCE WORLDWIDE CORPORATION LIMITED ACN 610855877 1H FY19 RESULTS PRESENTATION 25 February 2019 Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1H FY19 RESULTS | PAGE 0
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (25 February 2019). 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: Agenda
Agenda 1. Highlights 3 2. Financial Performance 8 3. Segment Performance 13 4. Outlook 18 Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1H FY19 RESULTS | PAGE 2
Slide 4: Highlights
01. HIGHLIGHTS Reliance Worldwide Corporation Limited PAGE 3
Slide 5: Key Business Highlights
Key Business Highlights Sales and EBITDA growth in excess of 50% led by first full half-year inclusion of John Guest and continued double digit underlying growth in core SharkBite Push-to-Connect (PTC) fittings and accessories in the Americas Further penetration of our core SharkBite PTC business
Slide 6: 1H FY19 Financial Highlights
1H FY19 Financial Highlights Net sales Adjusted EBITDA3 NPAT $544.2 million $130.8 million $65.7 million +50% growth overall and +10% underlying growth on comparable +65% growth1 +58% growth1 basis1,2 Continued strong Balance Sheet Interim dividend sales growth from strength declared o
Slide 7: The Story of the Half
The Story of the Half Strong underlying growth in the Americas and EMEA continues to support group revenue growth • APAC was affected by a delay in the launch of sales of EvoPEX and PEX related systems caused by manufacturing challenges which have been resolved John Guest integration progressing
Slide 8: Business Outlook
Business Outlook Business fundamentals remain strong – we are happy with where the business is today and believe we are better positioned than ever before • End user demand remains strong in key markets, particularly in the USA and the UK • Evidenced by point of sale data at channel partners and w
Slide 9: Financial Performance
02. FINANCIAL PERFORMANCE Reliance Worldwide Corporation Limited PAGE 8
Slide 10: 1HFY19 Consolidated Results
1HFY19 Consolidated Results Commentary (A$m) 1H FY19 1H FY18 Variance Net Sales 544.2 362.6 +50% Net sales up 50% over comparative period (+44% on a constant currency basis) Reported EBITDA 120.7 79.3 +52% EBITDA margin 22.2% 21.9% +30bps Solid revenue performance across all 3 segments1: America
Slide 11: Year over Year Change in Net Sales
Year over Year Change in Net Sales All values in millions of AUD Commentary Overall growth in reported sales was A A 50% versus comparative period including the addition of John Guest and the favourable impact of a weaker Australian dollar on translated revenue Both periods also included one-off
Slide 12: Sound Cash Flow Generation from Operations
Sound Cash Flow Generation from Operations Commentary (A$m) 1H FY19 1H FY18 Variance Cash flow from operations generated1 Reported EBITDA 120.7 79.3 + 52.2% $69.5 million in FY19, an increase of 25% Changes in Working Capital (51.2) (23.5) - 118.0% over FY18 Cash flow from operations1 69.5 55.8 +
Slide 13: Balance Sheet Strength
Balance Sheet Strength Debt metrics Commentary A$m 31 December 2018 30 June 2018 Strong balance sheet with pro forma net leverage of 1.71x at 31 December Cash and cash equivalents 71.7 274.3 20181 Higher working capital compared with Gross debt 502.4 662.3 30 June 2018 to support a growing busin
Slide 14: Segment Performance
03. SEGMENT PERFORMANCE Reliance Worldwide Corporation Limited PAGE 13
Slide 15: Segment Results – Americas
Segment Results – Americas (A$m) 1H FY19 1H FY18 Variance Net sales1 323.6 266.8 + 21% EBITDA2 54.9 52.9 + 4% EBITDA margin 17.0% 19.8% (280 bps) Adjusted EBITDA3 55.8 52.9 + 5% Adjusted EBITDA margin 17.2% 19.8% (260 bps) Financial commentary Operational commentary Net sales grew 21% over the com
Slide 16: Year over Year Change in Net Sales - Americas
Year over Year Change in Net Sales - Americas All values in millions of AUD Commentary Overall growth in reported sales 21% versus comparative period including the addition of John Guest and the favourable impact of a weaker Australian dollar on translated revenue FY18 net sales included the one
Slide 17: Segment Results – EMEA
Segment Results – EMEA (A$m) 1H FY19 1H FY18 Variance Net sales1 154.3 29.4 +425% EBITDA2 43.3 (0.4) n/m EBITDA margin 28.1% (1.3%) n/m Adjusted EBITDA3 48.3 (0.4) n/m Adjusted EBITDA margin 31.3% (1.3%) n/m Financial commentary Operational commentary Net sales increased 425% compared to the prior
Slide 18: Segment Results – Asia Pacific
Segment Results – Asia Pacific (A$m) 1H FY19 1H FY18 Variance Net sales1 129.8 121.6 + 7% EBITDA2 24.6 29.9 (18%) EBITDA margin 19.0% 24.6% (560 bps) Adjusted EBITDA3 26.2 29.9 (12%) Adjusted EBITDA margin 20.2% 24.6% (440 bps) Financial commentary Operational commentary Net sales growth of 7% ver
Slide 19: Outlook
04. OUTLOOK Reliance Worldwide Corporation Limited PAGE 18
Slide 20: FY2019 Outlook
FY2019 Outlook FY2019 forecast EBITDA of $280 million to $290 million, including actual synergies expected to be realised in FY2019 and excluding one-off integration costs expected to be incurred1 Expect continued top line growth in all regions, including ongoing expansion in the core business a
Slide 21: Reliance Worldwide Corporation Limited
Reliance Worldwide Corporation Limited PAGE 20