Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — H1 2017 Earnings Presentation
21 slides from Reliance Worldwide's earnings presentation, Feb 23, 2017
Slide 1: 1HFY17 Results Presentation
RELIANCE WORLDWIDE CORPORATION LIMITED ACN 610855877 www.rwc.com 1HFY17 RESULTS PRESENTATION 23 February 2017
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (23 February 2017). 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. Results Highlights 3 2. Financial Performance 6 3. Growth Strategy and Outlook 14 Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 2
Slide 4: 1. Results Highlights
1. Results Highlights Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 3
Slide 5: 1HFY17 Achievements
1HFY17 Achievements Continued strong sales growth in core SharkBite business in the Americas Sales to The Home Depot grew in the period with strong pre-winter purchasing New Lowe’s agreement provides expanded USA retail distribution network. Inventory built and preparation activities well unde
Slide 6: 1HFY17 Financial Highlights
1HFY17 Financial Highlights Net sales EBITDA NPAT $282.7 million $63.7 million $35.3 million +4% growth, +9% on a constant +18% growth 56% of FY17 Prospectus forecast currency basis Continued strong Net debt reduced by Interim dividend growth from Americas $31.6 million declared of 3 cps
Slide 7: 2. Financial Performance
2. Financial Performance Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 6
Slide 8: 1HFY17 Results
1HFY17 Results Pro Forma Commentary June year end (A$m) 1HFY17 1HFY16 Variance Net sales 282.7 271.9 + 4.0% Net sales up 4% compared to Pro Forma 1HFY16 (+9% on a constant currency basis) EBITDA1 63.7 54.0 + 18.0% Solid performance from Americas (+8)% and Asia Pacific (+5%), offset by weakness i
Slide 9: Group EBITDA Bridge (1HFY16 to 1HFY17)
Group EBITDA Bridge (1HFY16 to 1HFY17) A$m Sales growth Increase in opex driven by Sales adversely primarily related to intersegment impacted by Brexit volume driven Strong sales growth sales to the and stronger Lower cost of sales driven by continued SG&A activities in USA AUD/GBP driven by procure
Slide 10: Segment Results – Americas
Segment Results – Americas June year end (A$m) 1HFY17 Pro Forma 1HFY16 Variance Net sales1 198.8 184.1 + 8.0% EBITDA 37.1 29.5 + 25.8% EBITDA margin 18.7% 16.0% + 270 bps Financial commentary Operational commentary Net sales growth of 8% compared to Pro Forma 1HFY16 (+13% SharkBite PTC fittings
Slide 11: Segment Results – Asia Pacific
Segment Results – Asia Pacific June year end (A$m) 1HFY17 Pro Forma 1HFY16 Variance Net sales1 110.9 105.5 + 5.1% EBITDA 27.1 23.5 + 15.3% EBITDA margin 24.4% 22.3% + 210 bps Financial commentary Operational commentary Net sales growth of 5% compared to Pro Forma 1HFY16 Strong SharkBite producti
Slide 12: Segment Results – EMEA
Segment Results – EMEA June year end (A$m) 1HFY17 Pro Forma 1HFY16 Variance Net sales1 23.7 27.1 - 12.5% EBITDA 0.8 2.2 - 63.6% EBITDA margin 3.4% 8.1% - 470 bps Financial commentary Operational commentary Net sales down 13% compared to Pro Forma 1HFY16 (+10% Continued regular shipments from Spa
Slide 13: Strong Cash Flow Generation
Strong Cash Flow Generation Commentary June year end (A$m) 1HFY17 Pro Forma 1HFY16 Variance Strong cash flow conversion EBITDA 63.7 54.0 + 18.0% Non-cash items in EBITDA (0.2) (0.2) 0.0% Free cash flow generation3 of $42.2m in 1HFY17 Changes in working capital (9.9) (27.1) + 63.5% Cash flow from
Slide 14: Balance Sheet Strength
Balance Sheet Strength Debt metrics Commentary A$m At 31 December 2016 At 30 June 2016 Net debt reduced by $31.6 million in 1HFY17 Cash and cash equivalents 37.9 35.6 Strong balance sheet with net Gross debt 134.2 163.5 leverage reduced to 0.9x from 1.3x at 30 June 2016 Net debt 96.3 127.9 Net d
Slide 15: 3. Growth Strategy and Outlook
3. Growth Strategy and Outlook Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 14
Slide 16: Our Direction
Our Direction To profitably revolutionise and disrupt the plumbing industry Why we do what we do by commercialising solutions that make the trade more effective and efficient What we want to The rough plumbing sector leader become By developing and deploying differentiated capabilities, How we will
Slide 17: The Market In Which We Operate Supports Growth
The Market In Which We Operate Supports Growth The small diameter pipe, valve and fitting Projections for plumbers in the USA (‘000) market is large with no dominant competitor 49 (167) 500 Positive demand dynamics reinforce growth 382 PEX conversion is taking place in the pipe market away fro
Slide 18: Overview of Growth Strategy
Overview of Growth Strategy 6 1 Continued penetration of M&A brass PTC fittings and accessories in USA 5 2 Growth in market for New product development thermostatic and other Growth products strategy 4 3 Expansion into new Expansion into new geographic markets end-markets Reliance Worldwide Corporat
Slide 19: Expanded USA Retail Distribution
Expanded USA Retail Distribution • Expanded availability of SharkBite branded products • Increased growth and development of the overall PTC product category • Growth over long term for benefit of all distributors As such … RWC expects continued strong double digit growth in SharkBite PTC fittings a
Slide 20: FY17 Outlook
FY17 Outlook RWC reaffirms its pro forma FY17 Prospectus NPAT forecast1 and dividend target payout ratio for FY17 of 40-60% (in line with range set out in Prospectus) RWC expects continued market penetration of SharkBite PTC fittings and accessories in the Americas, which will benefit from our e
Slide 21: Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 20
Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY17 RESULTS 2017 | PAGE 20