Reliance Worldwide Corp. Ltd. · ASX:RWC

Reliance Worldwide — Investor Presentation (October 2017)

45 slides from Reliance Worldwide's investor presentation, Oct 31, 2017

  1. Slide 1: Analyst and Investor Presentation

    Analyst and Investor Presentation 31 October 2017 | PAGE 1 Reliance Worldwide Corporation Limited

  2. Slide 2: Important Notice

    Important Notice This presentation contains general information about the activities of Reliance Worldwide Corporation Limited and its operating businesses at the date of presentation (31 October 2017). It is information given in summary form and does not purport to be complete. It should be read in

  3. Slide 3: Agenda

    Agenda  Global Overview  Review and Strategic Update  Americas  Asia Pacific  EMEA  Q&A | PAGE 3 Reliance Worldwide Corporation Limited

  4. Slide 4: Global Overview

    Global Overview | PAGE 4 Reliance Worldwide Corporation Limited

  5. Slide 5: Global Overview and Strategic Priorities

    Global Overview and Strategic Priorities Net sales1 $601.7 million +13% growth vs PF FY20161 (+17% on a constant currency basis) EBITDA1 $120.7 million +22% growth vs PF FY20161 NPAT1 $65.6 million +26% growth vs PF FY20161 Strong net sales growth from Americas +19% growth vs PF FY20161 Americas EME

  6. Slide 6: Americas

    Americas | PAGE 6 Reliance Worldwide Corporation Limited

  7. Slide 7: Americas FY 2017 Accomplishments

    Americas FY 2017 Accomplishments Key Milestones Leading Brands with Top Positions in Categories We Serve  Strategic acquisition of HOLDRITE expands opportunity in Product Line Brand Market Position residential and commercial new construction markets Brass PTC Fittings Fittings & Pipe  Phase 1 Lowe

  8. Slide 8: Americas Facility Overview

    Americas Facility Overview Innovation, Sales, & Support Atlanta, GA Poway, CA Vaughn, ON Manufacturing Cullman, AL (3) La Vergne, TN Distribution Cullman, AL Las Vegas, NV Vaughn, ON | PAGE 8 Reliance Worldwide Corporation Limited

  9. Slide 9: Americas Growth Plan

    Americas Growth Plan Strong Market Fundamentals Growing Solution Focused Portfolio Ongoing Investment  Long term growth supported by  Innovative products and economy, supply and demand platforms of new construction and  Sales and marketing generating demographics end‐use demand in all channels 

  10. Slide 10: Market Fundamentals – Housing Outlook

    Market Fundamentals – Housing Outlook Strong Fundamentals in US Support Ongoing Growth New Home Existing Home Median Home Aging Sales Sales Prices Homes 8% 4% 3.5% 62% are over 40 yrs. old Note: 2017 Forecast vs 2018 Forecast Economic Forecast Housing Forecast 2017 2018 2017 2018 2015 2016 Forecast

  11. Slide 11: Market Fundamentals – Remodeling

    Market Fundamentals – Remodeling Healthy Gains in Remodeling Activity Moving into 2018  Healthy and stable growth in home improvement and repair spending is anticipated for the remainder of 2017 and into the first half of 2018  The LIRA projects that annual increases in remodeling expenditures wil

  12. Slide 12: Market Fundamentals – Commercial

    Market Fundamentals – Commercial  Renewed growth in commercial buildings.  Growth segments in 2017  Office Buildings up 11%  Warehouses up 9%  Education up 9%  Healthcare up 2%  Transportation up 135% Sources: Dodge Midyear 2017 Construction Outlook Commercial Product Solutions supported by s

  13. Slide 13: Market Fundamentals – Labor Arbitrage

    Market Fundamentals – Labor Arbitrage Projections for Plumbers Plumbing Workforce Required in 2022 600 49 ‐167 2012 2022 500 500 500 21% 382 400 400 Thousands Thousands 300 300 200 200 100 100 Workforce Today HS Graduates Retiring Workforce Future Workforce Plumbing Workforce Entering Workforce Incl

  14. Slide 14: Executing Growth Plan – Innovation: Residential New Construction

    Executing Growth Plan – Innovation: Residential New Construction  Revolutionary push to connect fitting optimized for the new construction market  Fast, versatile and reliable  Correct fit indicator Complete rough plumbing system for new construction (no tools, flame or chemicals) | PAGE 14 Relia

  15. Slide 15: Executing Growth Plan – Innovation: Commercial New Construction

    Executing Growth Plan – Innovation: Commercial New Construction Makeshift Method Engineered Solution  UL recognized water, smoke and firestop system  Protects against the spread of fire, smoke and gases  Provides a water seal for unwanted water intrusion Meter to Fixture and Floor to Ceiling Solu

  16. Slide 16: Executing Growth Plan – Demand Generation

    Executing Growth Plan – Demand Generation Demand Generation Activity Occurs  Product and Application Training Throughout The Route To Market Process  Field Devised Innovation for Building Professionals  Relationship Building  Estimation Services  Safety Awareness  BIM and Specification Submitt

  17. Slide 17: Executing Growth Plan – Supply Chain Excellence

    Executing Growth Plan – Supply Chain Excellence Leading with Supply Chain Excellence  Increasing manufacturing capacity for SharkBite, EvoPEX fittings, PEX tubing and Cash Acme valves in Cullman with an investment program in excess of $10M over FY2018 and FY2019  Maintained sector leading fill rat

  18. Slide 18: Executing Growth Plan – Supply Chain Excellence

    Executing Growth Plan – Supply Chain Excellence Substantial Investment in Americas Production Capabilities Cullman Manufacturing Campus Image – EvoPEX Assembly Machines Additional PEX Line EvoPEX™ Assembly Center Future Expansion Purchase SharkBite® Machining Center Future Injection Molding | PAGE 1

  19. Slide 19: Executing Growth Plan – Strategic Acquisitions: HOLDRITE

    Executing Growth Plan – Strategic Acquisitions: HOLDRITE Overview Sales mix (CY2015, percentages based on USD)  HOLDRITE acquired in 2HFY17 for total consideration of US$92.5 By sales channel By end market million (subject to customary closing adjustments) DIY Retail 9%  North American market lead

  20. Slide 20: Americas Summary

    Americas Summary • Sustainable housing and commercial construction building recovery The market in which we operate has • Steady economic growth; tight labor markets including building trades fundamentals that supports growth • Aging housing stock driving core repair/service and remodel sectors We c

  21. Slide 21: APAC

    APAC | PAGE 21 Reliance Worldwide Corporation Limited

  22. Slide 22: APAC FY 2017 Accomplishments

    APAC FY 2017 Accomplishments Key Milestones Leading Brands with Top Positions in Categories We Serve  Continued market leading position across all key product Product Line Brand Market Position segments in Australia and New Zealand Brass PTC Fittings Fittings & Pipe  PE‐Xa manufactured in RWC Spai

  23. Slide 23: Who we are – The journey began in Brisbane in 1949

    Who we are – The journey began in Brisbane in 1949 History  RMC established in Brisbane in 1949.  Focus moved from general engineering to water products in 1950.  Synergistic acquisitions of strategic manufacturing processes or water product companies expanded the company early in the 2000’s.  O

  24. Slide 24: Australia & New Zealand Facility Overview

    Australia & New Zealand Facility Overview Innovation, Sales, & Support Brisbane, QLD Manufacturing Melbourne, VIC (5) Brisbane, QLD Auckland, NZ Distribution Melbourne, VIC Brisbane, QLD Sydney, NSW Perth, WA Auckland, NZ | PAGE 24 Reliance Worldwide Corporation Limited

  25. Slide 25: APAC Growth Plan

    APAC Growth Plan Strong Market Fundamentals Growing Solution Focused Portfolio Ongoing Investment  Market leading brands with  State of the art, fully automated proven history and manufacturing assets performance  Industry leading technical sales  Widest product range, leading support and custom

  26. Slide 26: Market Fundamentals – Australian Market Outlook

    Market Fundamentals – Australian Market Outlook Stable ongoing base, coming off a period of high activity Median Home Home GDP1 Job Growth1 Prices1 Sales1 2.75% 0% 0% Note 1: 2017 v 2018 Forecast change -4.00% Economic Forecast Housing Forecast F 17/18 F 18/19 F 17/18 F 18/19 F 16/17 F 16/17 Forecas

  27. Slide 27: Executing – Market Leadership: Residential New Construction

    Executing – Market Leadership: Residential New Construction VALVES PEX PIPE PLUMBING FITTINGS WATER METER  Revolutionary push to connect fitting for the first home buyer construction market  Fast, Versatile, and Reliable Complete rough plumbing system for new construction (no tools, flame or chemi

  28. Slide 28: Executing – Innovation: Commercial New Construction

    Executing – Innovation: Commercial New Construction PRV PEX PIPE WATER METERS SHARKBITE Makeshift Method Engineered Solution  Under review for application in the Australia / New Zealand market  Complimentary product enhancing our piping system package Meter to Fixture and Floor to Ceiling Solution

  29. Slide 29: Executing – Demand Generation

    Executing – Demand Generation Demand Generation Activity Occurs  Product and Application Training Throughout The Route To Market Process for Building Professionals  BIM and Specification Submittal Assistance  Technical Support  Code/Regulation Development  Risk Mitigation Benefits  Proven and

  30. Slide 30: Executing – Industry Leading Assets

    Executing – Industry Leading Assets Substantial Investment in Australian Production Capabilities for all Core Products Molding ‐ Croydon Brisbane Head Office PEX Extrusion – Dandenong Forging ‐ Moorabbin High Speed Machining ‐ Braeside Automated Assembly – Dandenong | PAGE 30 Reliance Worldwide Corp

  31. Slide 31: Executing – Our Channel Partners

    Executing – Our Channel Partners  WHOLESALE & DISTRIBUTION PARTNERS: MANUFACTURING PARTNERS:  RWC maintains a key supplier position with RWC is a strategic partner with  all major plumbing wholesalers / distributors the following leading industry manufacturers | PAGE 31 Reliance Worldwide Corpora

  32. Slide 32: APAC Summary

    APAC Summary • A strong building base will remain for the foreseeable future The market in which we operate is • Flat economic growth; tight labour markets including building trades stable and slow moving • Good mix of multi unit and single dwelling developments in the pipeline We continue to packag

  33. Slide 33: EMEA

    EMEA | PAGE 33 Reliance Worldwide Corporation Limited

  34. Slide 34: UK - Who We Are

    UK ‐ Who We Are • Established 1986 • Based in Evesham • 86 Employees • 1,200 customers | PAGE 34 Reliance Worldwide Corporation Limited

  35. Slide 35: UK Product Portfolio - What Do We Supply

    UK Product Portfolio ‐ What Do We Supply Enables our customers to clearly understand the solutions we provide | PAGE 35 Reliance Worldwide Corporation Limited

  36. Slide 36: UK Channels - Who Do We Supply

    UK Channels ‐ Who Do We Supply Underfloor Heating National Plumbing Merchants OEM Thermal Interface Units | PAGE 36 Reliance Worldwide Corporation Limited

  37. Slide 37: UK – Our Key Support Elements

    UK – Our Key Support Elements BIM Compliant Dedicated Certified Key Account Products Management Business Excellence KANBAN Same Day Supplied Availability Collaborate with partners to pull through product demand | PAGE 37 Reliance Worldwide Corporation Limited

  38. Slide 38: UK Growth Opportunities

    UK Growth Opportunities • TIUs – Electronic Unit NPD • UFH Expansion • Wholesale Expansion range extensions – • Wolseley • BSS • R&D focused activities to drive: • Enhanced performance • Extended product lifecycles • Increased ROI Investigate UK M&A opportunities to supplement organic growth | PAGE

  39. Slide 39: Spain Overview

    Spain Overview • Based in Granada • RWC Group integration 2015 • 50 Employees • Extrusion & Moulding Facility | PAGE 39 Reliance Worldwide Corporation Limited

  40. Slide 40: Spain - Products

    Spain ‐ Products Spain Overview PEX‐a & EVOH PEX SharkBite Push‐to‐Connect and Press Fittings Continue to leverage our fittings IP through R&D | PAGE 40 Reliance Worldwide Corporation Limited

  41. Slide 41: Spain – Investment in Manufacturing Capability

    Spain – Investment in Manufacturing Capability Spain Overview | PAGE 41 Reliance Worldwide Corporation Limited

  42. Slide 42: Spain – Driving Growth

    SpainSpain - Driving – Driving Growth Growth Key Focus Areas • Maximise installed capacity • Drive fittings growth to increase profitability • Range addition – UFH & Solar Leverage improved manufacturing capacity via increasing exports | PAGE 42 Reliance Worldwide Corporation Limited

  43. Slide 43: Future Thinking

    Future Thinking | PAGE 43 Reliance Worldwide Corporation Limited

  44. Slide 44: Current Geographical Situation in EMEA

    Current Geographical Situation in EMEA Key Current operational sites Established Business Start-up in progress Not present Strategically develop revenue in EMEA via acquisition in European market | PAGE 44 Reliance Worldwide Corporation Limited

  45. Slide 45: Analyst and Investor Presentation

    Analyst and Investor Presentation 31 October 2017 | PAGE 45 Reliance Worldwide Corporation Limited

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