Slide 1: ASX Announcement: FY24 Investor Presentation
ASX Announcement 19 August 2024 FY24 Investor Presentation Attached for release is Reece Limited’s FY24 Investor Presentation for the 12 month period ended 30 June 2024. For further information contact: Georgina Freeman Siobhan Weaver Investor Relations Corporate Affairs Reece Group Reece Group E: g
Slide 2: Full Year Results 2024
Full Year Results 2024 12 months ended 30 June 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, 19 August 2024. The information is given in summary form and does not p
Slide 4: Presenters
Presenters Peter Wilson Andy Young CEO CFO 3 Reece. Works for you.
Slide 5: Agenda
Agenda 01 FY24 overview 02 Strategy recap 03 Operational review 04 Financial review 05 Outlook 06 Summary 07 Q&A 4 Reece. Works for you.
Slide 6: FY24 Overview
01 FY24 Overview 5 Reece. Works for you.
Slide 7: Financial overview
Financial overview Disciplined execution in a challenging market environment Sales Adjusted Adjusted Adjusted revenue EBIT NPAT EPS up 3% to $9.1b up 2% to $681m up 3% to $416m up 3% to 64 cents ANZ US Net leverage ratio FY24 total dividend Sales revenue Sales revenue 25.75 cents per flat at $3.8b u
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 Building a better Our purpose We will be our Operational Customised service: and values guide trade’s most Excellence world for our our decisions and valuable partne
Slide 10: The Reece Way
The 2016 Reece Way 2024 1997 2006 9 Reece. Works for you.
Slide 11: The Reece Way
The Create customers Be your best Reece Way for life Team first Entrepreneurial spirit Innovate big Try. Try. Try. and small Our Purpose Building a better Own it Keep it world for our simple customers by Do the Be humble being the best. right thing 10 Reece. Works for you.
Slide 12: Operational review
03 Operational review 11 Reece. Works for you.
Slide 13: Strong execution of strategic priorities
Strong execution of strategic priorities Operational Accelerating Investing for Excellence Innovation Profitable Growth • Ongoing focus on the • Remain focused on innovation • Ongoing expansion of fundamentals, continuous initiatives supporting trade of network in both regions improvement and delive
Slide 14: ANZ Operational overview
Operational overview ANZ 13 Reece. Works for you.
Slide 15: ANZ network of scale
ANZ network of scale 12 661 branches 123 52 46 188 186 Leveraging network density to deliver customer promise; ongoing investment 38 in network infill and upgrades. 16 14 Reece. Works for you.
Slide 16: New Auckland distribution centre
New Auckland distribution centre To support and scale our operations in New Zealand. 15 Reece. Works for you.
Slide 17: Driving innovation for the future of our trade
Driving innovation for the future of our trade Staying at the forefront of future trends; helping our customers run their business with ease. 16 Reece. Works for you.
Slide 18: US Operational overview
Operational overview US 17 Reece. Works for you.
Slide 19: Building scale in the US
Building scale in the US 243 branches Network expansion and upgrades continue; strong progress on Reece rebrand. 18 Reece. Works for you.
Slide 20: Supporting growth in the US
Supporting growth in the US New distribution centre will support service proposition. 19 Reece. Works for you.
Slide 21: Continuing to invest in our team
Continuing to invest in our team Building capability to support the growth of our network. 20 Reece. Works for you.
Slide 22: Financial review
04 Financial review 21 Reece. Works for you.
Slide 23: Group financial highlights
Group financial highlights Statutory Statutory Statutory Statutory Statutory sales revenue EBITDA EBIT NPAT EPS up 3% up 7% up 4% up 8% up 8% to $9.1b to $1.0b to $681m to $419m to 65 cents From $8.8b From $944m From $654m From $388m From 60 cents Constant Adjusted Adjusted Adjusted Adjusted currenc
Slide 24: Group performance
Group performance Group adjusted EBIT & sales Group ROCE6 700 5,000 16.0% 9,000 4,500 600 14.0% 8,000 4,000 7,000 12.0% 500 3,500 Shareholders equity Sales revenue ($m) Adjusted EBIT ($m) plus net debt ($m) 6,000 10.0% 3,000 ROCE (%) 400 5,000 2,500 8.0% 300 4,000 2,000 6.0% 3,000 1,500 200 4.0% 2,0
Slide 25: ANZ financial highlights
ANZ financial highlights More challenging trading environment in 2H Sales flat • Softening housing market created headwinds FY24 in 2H. 1H 2H FY24 FY23 Var. % 30 June 2024 (A$m) • Backlog activity largely worked through. Sales revenue 1,972 1,874 3,846 3,853 flat Adjusted EBIT down 3% Adjusted EBITD
Slide 26: US financial highlights
US financial highlights USD End markets remain mixed FY24 1H 2H FY24 FY23 Var. 30 June 2024 (US$m) Sales up 3% (US dollars) Sales revenue 1,683 1,769 3,452 3,342 3% Adjusted EBITDA1 143 150 293 269 9% • Overall trading environment challenging, despite improvement in 2H sales. Adjusted EBITDA1 marg
Slide 27: Cashflow
Cashflow FY24 - 30 June 2024 (A$m) Adjusted EBITDA1 FY24 1,007 FY23 958 Net movements in working capital (incl. FX) 29 70 • Strong operating cash flow generation. Non-cash items and BAC income3 - 25 • Increased investment in priority areas: Income tax paid (194) (200) branch refurbishments, rebrand,
Slide 28: Balance sheet
Balance sheet Net working capital Debt • Disciplined management of NWC in subdued • Strong cashflow generation continuing to support volume environment. debt paydown. • NWC to sales ratio 18% (FY23: 19%). • Decrease in net leverage ratio to 0.6x (FY23: 0.9x). • US$300m USPP note issuance diversifyin
Slide 29: Capital management priorities
Capital management priorities Enable sustainable long term growth 01. 02. 03. Invest in growth Strong balance Shareholder sheet returns Organic Pay down debt; Dividends, investments retain flexibility share buyback. and M&A. for growth. 28 Reece. Works for you.
Slide 30: Outlook
05 Outlook 29 Reece. Works for you.
Slide 31: Expect near term to remain challenging (ANZ)
Expect near term to remain challenging 160 Australian single family private housing units1 ANZ 140 120 • Backlog largely worked 100 through. Thousands 80 60 • Housing activity expected 40 to remain soft. 20 0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Mar-24 Under construc
Slide 32: Expect near term to remain challenging (US)
Expect near term to remain challenging US new privately-owned single family housing units1 1200 US 1000 • Remain cautious given 800 economic uncertainty. Thousands 600 400 • Current trading environment 200 remains mixed. 0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24
Slide 33: Summary
06 Summary Reece approach remains unchanged. Focus on the Customer Investing for fundamentals proposition the future 32 Reece. Works for you.
Slide 34: Reece. Works for you.
07 33 Reece. Works for you.
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Slide 36: Appendix and supplementary information
Appendix and supplementary information 35 Reece. Works for you.
Slide 37: Key metrics
Key metrics Reconciliation from Statutory EBIT to Adjusted EBIT Reconciliation from Statutory NPAT to Adjusted NPAT FY24: 30 June 2024 (A$m) FY24 FY23 Var. FY24: 30 June 2024 (A$m) FY24 FY23 Var. EBIT (statutory) 681 654 4% NPAT (statutory) 419 388 8% Add back/deduct: Add back/deduct (tax effected):
Slide 38: Group definitions
Group definitions EBITDA adjusted to exclude government incentive scheme income (BAC income3), 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 Ap
Slide 39: FX impact on sales
FX impact on sales 38 Reece. Works for you.