Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — FY2024 Earnings Presentation
25 slides from Reliance Worldwide's earnings presentation, Aug 20, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation 20 August 2024 RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (20 August 2024). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for subs
Slide 3: FY24 Overview
FY24 Overview Strong execution offset soft residential new construction and remodel markets Holman Progress with acquisition group-wide Successful new operational Strong financial completed and product rollouts projects that performance integration with boosted will underpin RWC well performance fut
Slide 4: FY24 Financial Highlights
FY24 Financial Highlights All figures in US$ Net sales Adjusted EBITDA +0.2% growth overall1 In line with pcp $1,245.8 -2.4% excluding Holman $274.6 Underlying Adjusted EBITDA million million margin: 22.3%2 Cash generated Adjusted NPAT -5.7% on pcp from operations +7% versus pcp $146.9 $23 million i
Slide 5: FY24 Performance Summary
FY24 Performance Summary Year ended: 30 June 2024 30 June 2023 % Change US$m Net sales 1,245.8 1,243.8 0.2% Commentary Reported EBITDA 247.5 276.1 (10.4%) ▪ Net sales up 0.2% on pcp, included a partial contribution from Holman 1 Adjusted for one-off items 27.1 (1.5) ▪ Excluding Holman, sales were 2.
Slide 6: Segment results: Americas
Segment results: Americas Strong operating earnings growth Americas Commentary US$m FY24 FY23 % Change ▪ Weaker demand from discretionary remodel end-markets adversely impacted sales, but was largely offset by new product revenues: Net Sales 877.7 890.1 (1.4%) ▪ Continued rollout of SharkBite Max, n
Slide 7: Segment results: Asia Pacific
Segment results: Asia Pacific Transfer of SharkBite manufacturing to the US impacted volumes and margins Asia Pacific Commentary A$m FY24 FY23 % Change ▪ Sales were up 2.6%, including A$48.8m in sales from Holman Net Sales 290.1 282.7 2.6% ▪ Excluding Holman, sales were down 14.6%: inter-company sal
Slide 8: Segment results: EMEA
Segment results: EMEA Margins impacted by lower volumes in UK and Continental Europe EMEA Commentary £M FY24 FY23 % Change ▪ Sales 7.3% lower than pcp, with external sales 9.6% lower than pcp: Net Sales 209.4 226.0 (7.3%) ▪ UK external sales down 9.2% on pcp ▪ UK plumbing and heating sales down 6.2%
Slide 9: FY24: strong operating cash flow performance
FY24: strong operating cash flow performance Year ended: 30 June 2024 30 June 2023 Variance Cash flow performance US$m US$m FY24 FY23 Cash generated from operations 314.2 292.7 7.3% Adjusted EBITDA 274.6 274.6 Income tax paid (39.8) (42.4) -6.1% Cash generated from operations 314.2 292.7 Net cash in
Slide 10: Working capital management underpinned cash flow
Working capital management underpinned cash flow Net working capital US$m 30-Jun-24 30-Jun-23 Commentary ▪ Net working capital reduced by $16.4m during FY24 due to reduced Trade and other receivables 238.8 246.0 inventory levels, lower trade receivables and higher trade payables Inventories (excl. H
Slide 11: Balance sheet strengthened through net debt reduction
Balance sheet strengthened through net debt reduction Debt metrics Amount Drawn US$m 30-Jun-24 30-Jun-23 US$ million Facility Limit Expiry at 30 June 24 Cash and cash equivalents 19.9 16.6 Bank Facilities Gross debt 441.0 451.7 Tranche B/Facility B 320.0 91.0 Nov-26 1 Net debt 421.1 435.0 Tranche A1
Slide 12: Outlook for FY25
Outlook for FY251 FY25 Specific Guidance For the first six months of trading in FY25: The following key assumptions are provided for ▪ RWC expects consolidated external sales to be broadly flat, FY25: within a range of up or down by low single digit percentage ▪ Operating cash flow conversion expect
Slide 13: Strategic growth initiatives
Strategic growth initiatives Global strategy, local execution Americas: Commercial Growth across three areas Residential repair & plumbing through a Larger remodel and remodel through combination of new residential new Estimated Total Addressable Market: continued channel product development constru
Slide 14: Our Focus for 2025
Our Focus for 2025 Execution excellence Focus area Activity Outcome ▪ Keep safety our No.1 priority ▪ Everyone safe, every day People, Safety & Culture ▪ Progress our ESG priorities ▪ Positive impact on our people, our communities and the environment ▪ Continual focus on delivery performance ▪ Stand
Slide 15: Supplementary Financial Information
Supplementary Financial Information
Slide 16: FY24 Shareholder Distributions
FY24 Shareholder Distributions FY24 Interim FY24 Final FY24 Total FY23 Total US$m CPS US$m CPS US$m CPS US$m CPS Total Distribution Amount 35.6 4.5 39.3 5.0 74.9 9.5 75.1 9.5 ▪ The final cash dividend will be paid in Australian dollars at 3.781 cents per - Dividend 17.8 2.25 19.6 2.5 37.4 4.8 75.1 9
Slide 17: FY24 Adjustment Items
FY 24 Adjustment Items US$ million EBITDA EBIT Tax Expense NPAT FY24 Reported 247.5 187.5 (46.4) 110.1 Americas: Supply Smart closure of operations, 11.0 11.0 (2.8) 8.2 DC rationalisation Americas Total 11.0 11.0 (2.8) 8.2 Holman acquisition & integration costs 4.0 4.0 (1.2) 2.8 Holman acquisition -
Slide 18: Taxation
Taxation Year ended: 30 June 2024 30 June 2023 % Change US$m Reported net profit before tax 156.5 191.2 (18.1%) ▪ The accounting effective tax rate for the period was 29.6% compared with 26.9% in the pcp Tax Expense (46.4) (51.5) (9.9%) ▪ This rate excludes RWC’s entitlement to claim Reported net pr
Slide 19: Segment results in US$
Segment results in US$ Asia Pacific US$m FY24 FY23 % Change Net Sales 190.3 190.4 -0.1% Adjusted EBITDA1,2 22.0 31.9 (31.0%) Adjusted EBITDA margin (%) 11.6% 16.8% (530bps) Adjusted EBIT1,2 10.4 22.5 (53.8%) Adjusted EBIT margin (%) 5.5% 11.8% (630bps) EMEA US$M FY24 FY23 % Change Net Sales 263.6 27
Slide 20: Macro-economic indicators
Macro-economic indicators Americas EMEA APAC New Orders for Construction: All New Housing Australian New Dwelling Commencements2,3 4,250 (£m)1 4,000 3,750 200,000 3,500 150,000 3,250 100,000 3,000 50,000 2,750 2,500 0 Jul to Oct to Jan to Apr to Jul to Oct to Jan to Apr to Jul to Oct to Jan to Apr t
Slide 21: RWC strategy
Plumbing Matters. We Make It Better.” RWC strategy
Slide 22: RWC is well positioned for long-term growth
RWC is well positioned for long-term growth Large and fragmented landscape RWC’s Total Addressable Market >US$25B Few large players Enduring tail winds Labour shortage Ageing homes Sustainability investments Differentiated proposition Save time Make jobs easier Tier 1 brands 22
Slide 23: Strategy Overview
Strategy Overview Creating value through product leadership Solutions for Value for the Industry leading the job site distributor execution Smart product solutions that improve Increasing value for the distributor Premium quality products and contractor productivity, enable the DIYer, while providin
Slide 24: RWC's Capital Management approach
RWC’s Capital Management approach Capital management approach aims to minimise the cost of capital and ensure ongoing access to funding to meet future requirements Strong Financial Value creation Capital management Focus Improving long term Organic Capital Capital Consistent Capital Acquisitions mar
Slide 25: RWC is a global growth-orientated building products company
RWC is a global growth-orientated building products company with defensive end-market exposures Global plumbing solutions in a large and Portfolio of plumbing solutions underpinned growing market by in-house R&D Track record of creating value from M&A Resilient earnings profile due to R&R exposure R