Slide 1: Reece Limited - HY20 Results Presentation
ASX Announcement 27 February 2020 Reece Limited - HY20 Results Presentation Reece Limited (“Reece Group”; ASX: REH) today announces its financial results for the half-year ended 31 December 2019. Please find attached HY20 Financial Results presentation. For further information contact: Andrew Hewett
Slide 2: Half Year Results 2020
reece Half Year Results 2020
Slide 3: Disclaimer
Disclaimer Important Notice and 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. The information is given in
Slide 4: Agenda
Agenda Our Approach Financial Summary Business Highlights HY20 Financial Performance Reece Group | Half Year Results 2020 3
Slide 5: Our Approach
Agenda Our Approach Reece Group | Half Year Results 2020 4
Slide 6: Our Blueprint
Our Blueprint Inspired Live Embrace our Execute Deliver Customer by our the Reece 2030 Vision Transformation Promise Purpose Way Reece Group | Half Year Results 2020 5
Slide 7: It all starts with our Purpose & Values
It all starts with our Purpose & Values Improving the lives of our customers and people by striving for greatness every day Reece Group | Half Year Results 2020 6
Slide 8: Reece Group | Half Year Results 2020
Reece Group | Half Year Results 2020 7
Slide 9: Our Vision
Our Vision United Australia & States New Zealand Growth Platform Customised service in a digital landscape Reece Group | Half Year Results 2020 8
Slide 10: Financial Summary
Agenda Financial Summary Reece Group | Half Year Results 2020 9
Slide 11: Financial Highlights
Financial Highlights Including impact of Sales Normalised Normalised Statutory AASB 16 Revenue EBITDA* NPAT** NPAT Leases up 9% up 20% flat up 37% to $2,962m to $313m at $106m to $105m Excluding impact of Sales Normalised Normalised Statutory Revenue EBITDA* NPAT** NPAT AASB 16 Leases up 9% up 1% up
Slide 12: Segment Performance
Segment Performance Sales Revenue • US sales revenue grew 19% 2,718 2,962 and 9% on a like-for-like, constant currency basis • ANZ sales revenue 1,465 1,466 1,496 1,253 maintained in a softening market ANZ US TOTAL HY19 HY20 Reece Group | Half Year Results 2020 11
Slide 13: US Economic Commentary
US Economic Commentary Single and multi-family housing starts Leading Indicator of remodeling activity – Homeowner improvements four-quarter moving totals ($bn) Projections based on LIR (‘000’s) Single Family ('000s) Multi-Family ('000s) Q4 2019 US Census Bureau four qtr rate of change LIRA four qtr
Slide 14: ANZ Economic Commentary
ANZ Economic Commentary Dwelling Approvals Dwelling Completions (000s) (000s) 239 232 231 222 219 213 218 200 202 188 193 194 177 168 165 161 162 168 150 157 146 148 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Alterations and Addition
Slide 15: Business Highlights
Agenda Business Highlights Reece Group | Half Year Results 2020 14
Slide 16: US Growth Platform, Customised Service
US Growth Customised Platform Service Laying the Digitisation and foundations Innovation Investing in People People & Leadership & Leadership Reece Group | Half Year Results 2020 15
Slide 17: US Growth Platform: Laying the foundations
US Growth Customised Platform Service Laying the foundations Reece Group | Half Year Results 2020 16
Slide 18: Understanding our customers and their experience
Understanding our customers and their experience Reece Group | Half Year Results 2020 17
Slide 19: US Branches
US Branches +11 Reece Group | Half Year Results 2020 18
Slide 20: Reece Group | Half Year Results 2020
Reece Group | Half Year Results 2020 19
Slide 21: Investing in People & Leadership
US Growth Customised Platform Service Investing in People & Leadership Reece Group | Half Year Results 2020 20
Slide 22: Investing in our people & reducing complexity
Investing in our people & reducing complexity Reece Group | Half Year Results 2020 21
Slide 23: Digitisation and Innovation
US Growth Customised Platform Service Digitisation and Innovation Reece Group | Half Year Results 2020 22
Slide 24: Digitising the customer experience
Digitising the customer experience Reece Group | Half Year Results 2020 23
Slide 25: Reece means quality
Reece means quality Reece Group | Half Year Results 2020 24
Slide 26: Bringing showroom experiences to the customer
Bringing showroom experiences to the customer Reece Group | Half Year Results 2020 25
Slide 27: Innovating to manage our business better
Innovating to manage our business better Reece Group | Half Year Results 2020 26
Slide 28: Fast Experiments, Clear Process, Uplift in Proposition
Fast Experiments Venture Arm Clear Process Uplift in Proposition Reece Group | Half Year Results 2020 27
Slide 29: Investing in our network
Investing in our network 11 122 52 44 180 182 33 36 +5 15 Reece Group | Half Year Results 2020 28
Slide 30: People & Leadership
US Growth Customised Platform Service People & Leadership Reece Group | Half Year Results 2020 29
Slide 31: Learning Differently
Learning Differently Reece Group | Half Year Results 2020 30
Slide 32: Reece's Bushfire Relief Commitment
Reece’s Bushfire Relief Commitment Reece Group | Half Year Results 2020 Photo credit: Beth Jennings 31
Slide 33: HY20 Financial Performance
Agenda HY20 Financial Performance Reece Group | Half Year Results 2020 32 32
Slide 34: Results Summary
Results Summary Including impact from AASB 16 Leases Excluding impact from AASB 16 Leases 31 Dec 2019 half-year (A$m) HY20 HY19 Var. (%) 31 Dec 2019 half-year (A$m) HY20 HY19 Var. (%) Sales revenue 2,962 2,718 9% Sales revenue 2,962 2,718 9% Normalised EBITDA* 313 260 20% Normalised EBITDA* 263 260
Slide 35: Leasing Impact
Leasing Impact • Adopted 1 July 2019, with no change to comparative numbers as permitted by AASB 16 • Recognition of right-of-use (47) assets and lease liabilities (10) • Reducing NPAT by $7M Reece Group | Half Year Results 2020 34
Slide 36: USA Segment Summary
USA Segment Summary 31 Dec 2019 HY20 HY20 HY19 Var. (%) • Sales increased 19% half year (A$m) (post AASB 16) (pre AASB 16) (pre-AASB 16) • On a like-for-like constant currency basis increase in Sales Revenue 1,496 1,496 1,253 19% sales 9% • Increase in depreciation Normalised expense due to impact f
Slide 37: ANZ Segment Summary
ANZ Segment Summary 31 Dec 2019 HY20 HY20 HY19 Var. (%) half year (A$m) (post AASB 16) (pre AASB 16) (pre AASB 16) • Revenue flat in a slowing market • Increase in depreciation Sales Revenue 1,466 1,466 1,465 0% expense due to impact from AASB 16 Normalised • HY19 included MORSCO 208 179 186 4% EBIT
Slide 38: Cash Flow
Cash Flow 31 December 2019 half-year (A$m) HY20 HY19 Net Working Capital Normalised EBITDA* 313 260 (FY15A–HY20A) Net movements in working capital (24) (111) 1,200 25.0% Non-cash items in EBITDA 3 - 1,000 Income Tax Paid (47) (59) 800 20.0% Finance Costs (44) (41) 600 Cash flow from operations 201 4
Slide 39: Balance Sheet
Balance Sheet 31 December 2019 As at 31 As at 30 As at 31 Net Debt half year (A$m) Dec 2019 Jun 2019 Dec 2018 (excluding lease liabilities) Cash and cash equivalents 103 128 99 1,635 1,481 Total debt 1,738 1,609 1,694 Net debt 1,635 1,481 1,595 90 40 Net Financial asset 14 13 45 -2 (2) (FX derivativ
Slide 40: HY20 Summary
HY20 Summary 01 02 03 Solid result US on track Continued investment in digitisation and innovation Reece Group | Half Year Results 2020 39
Slide 41: Q&A
Q&A Reece Group | Half Year Results 2020 40 40