Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — H1 FY2025 Earnings Presentation
28 slides from Reliance Worldwide's earnings presentation, Feb 18, 2025
Slide 1: FY25 Interim Results Presentation
FY25 Interim Results Presentation 18 February 2025
Slide 2: Important Notice
Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (18 February 2025). 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: HY25 Overview
HY25 Overview Contribution from Holman and strong execution offset soft end markets Progress with Continued Manufacturing group-wide progress in and operational operational Strong financial RWC/Holman footprint review projects that performance integration and underway will underpin sales future init
Slide 4: HY25 Financial Highlights
HY25 Financial Highlights All figures in US$ Net sales +14.8% growth overall1 Adjusted EBITDA +15.2% on pcp $676.5 +3.8% excluding Holman and Supply Smart $143.8 Adjusted EBITDA margin: 22.2%2 million million Adjusted NPAT Adjusted EPS +12.3% on pcp +14.0% on pcp $76.0 Reported NPAT +31.8% 9.8 Repor
Slide 5: HY25 Performance Summary
HY25 Performance Summary Six months ended: 31 December 31 December % Change 2024 2023 US$m Net sales 676.5 589.5 14.8% Commentary Reported EBITDA 142.8 112.6 26.8% ▪ Net sales up 14.8% on pcp Adjusted for one-off items1 1.0 12.2 (91.8%) ▪ Excluding Holman and Supply Smart, sales were up 3.8% on pcp
Slide 6: Segment results: Americas
Segment results: Americas Underlying sales growth of 5.4%, strong operating earnings growth Americas Commentary US$m HY25 HY24 % Change ▪ Sales were 3.3% higher than pcp, despite weaker remodel and commercial construction markets Net Sales 440.6 426.4 3.3% ▪ Excluding Supply Smart, America’s sales w
Slide 7: Segment results: Asia Pacific
Segment results: Asia Pacific Sales up 87% driven by the Holman acquisition in March 2024 Asia Pacific Commentary A$m HY25 HY24 % Change ▪ Net Sales up 87.4% on pcp: Net Sales 226.7 121.0 87.4% ▪ A$110.8m in sales from Holman Adjusted EBITDA1,2 27.2 12.9 110.9% ▪ External sales excluding Holman up 0
Slide 8: Segment results: EMEA
Segment results: EMEA Lower P&H volumes in UK, Continental Europe sales up 2.3% EMEA Commentary £M HY25 HY24 % Change ▪ External sales 4.6% lower than pcp: Net Sales 94.3 101.4 (7.0%) ▪ UK external sales 6.9% lower than pcp ▪ UK plumbing and heating sales down 8.6% due to lower Adjusted EBITDA1,2 27
Slide 9: HY25: Reduction in leverage from lower net debt and stronger operating earnings
HY25: Reduction in leverage from lower net debt and stronger operating earnings Six months ended: 31 December 31 December % Change Cash flow performance 2024 2023 US$m US$m HY25 HY24 Cash generated from operations 127.0 151.6 (16.2%) Adjusted EBITDA 143.8 124.8 Income tax paid (18.3) (29.6) (38.3%)
Slide 10: Working capital increase due to the addition of Holman
Working capital increase due to the addition of Holman Net working capital US$m 31-Dec-24 30-Jun-24 31-Dec-23 Commentary Trade and other receivables 233.0 238.8 216.3 ▪ Net working capital increased slightly from 30 June 2024: Inventories (excl. Holman) 283.3 270.8 292.9 ▪ Inventories (excl Holman)
Slide 11: Outlook for FY25
Outlook for FY251 FY25 Specific Guidance The following key assumptions are provided for ▪ RWC expects full year group external sales for FY25 to be up by FY25: mid-single digit percentage points on pcp ▪ Operating cash flow conversion expected to be ▪ Excluding Holman and Supply Smart, full year gro
Slide 12: RWC is well positioned to respond to tariff increases
RWC is well positioned to respond to tariff increases ▪ RWC predominantly manufactures key products in each region for sale RWC’s principal international flows: within that region, potentially a competitive advantage ▪ Americas COGS includes approx. $120m in purchases from China ▪ China to US curren
Slide 13: Global initiatives in focus for 2025
Global initiatives in focus for 2025 Execution excellence Focus area Activity Outcome ▪ Keep safety our No.1 priority ▪ Everyone safe, every day People, Safety & Culture ▪ Progress our ESG priorities ▪ Positive impact on our people, our communities and the environment ▪ Continual focus on delivery p
Slide 14: RWC is well-placed to drive long-term growth
RWC is well-placed to drive long-term growth Optimised footprint and operational excellence in addition to a continued focus on growth provide operating leverage as volumes recover Shift of manufacturing capability to the US optimises manufacturing costs US manufacturing footprint and footprint Stro
Slide 15: Supplementary Financial Information
Supplementary Financial Information
Slide 16: HY25 Shareholder Distributions
HY25 Shareholder Distributions FY25 Interim FY24 Interim ▪ The interim cash dividend will be paid in Australian dollars at 3.9691 cents per share. The amount has been converted US$m CPS US$m CPS to Australian currency using the average exchange rate over the 5 business days ended 14 February 2025 To
Slide 17: HY25 Adjustment Items
HY25 Adjustment Items US$ million EBITDA EBIT Tax Expense NPAT HY25 Reported 142.8 107.8 (25.3) 67.2 Americas: DC rationalisation 0.3 0.7 (0.2) 0.5 APAC: Holman integration and synergy realisation 0.7 0.7 (0.2) 0.5 costs Total one-off costs 1.0 1.4 (0.4) 1.0 Goodwill tax amortisation - - 7.8 7.8 HY2
Slide 18: Taxation
Taxation Six months ended: 31 December 31 December % Change 2024 2023 US$m Reported net profit before tax 92.5 69.6 32.9% Commentary Tax Expense (25.3) (18.6) 36.0% ▪ The accounting effective tax rate for the period was 27.4% Reported net profit after tax 67.2 51.0 31.8% compared with 26.7% in the p
Slide 19: Segment results in US$
Segment results in US$ Asia Pacific US$m HY25 HY24 % Change Net Sales 150.3 78.9 90.5% Adjusted EBITDA1,2 18.1 8.4 115.2% Adjusted EBITDA margin (%) 12.0% 10.6% 140bps Adjusted EBIT1,2 9.2 4.2 119.0% Adjusted EBIT margin (%) 6.1% 5.3% 80bps EMEA US$M HY25 HY24 % Change Net Sales 121.9 127.0 (4.0%) A
Slide 20: Debt maturity profile
Debt maturity profile US$ million Facility Limit Amount Drawn Expiry Commentary at 31 Dec 24 ▪ Net debt to Adjusted EBITDA was 1.41 times at 31 December 2024 (based on historic EBITDA for a 12-month period ended 31 December Bank Facilities 2024) compared with 1.56 times for the pcp Tranche B/Facilit
Slide 21: Macro-economic indicators
Macro-economic indicators Americas EMEA APAC UK New Orders for Construction: All New Australian New Dwelling Commencements2,3 4,500 Housing (£m)1 4,250 4,000 250,000 3,750 3,500 3,250 200,000 3,000 2,750 150,000 2,500 2,250 100,000 2,000 1,750 50,000 1,500 1,250 1,000 0 Jul to Oct to Jan to Apr to J
Slide 22: RWC strategy
Plumbing Matters. We Make It Better.” RWC strategy
Slide 23: RWC is a global growth-orientated building products company with defensive end-market exposures
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
Slide 24: 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 24
Slide 25: RWC's Vision | Complete plumbing global leader
RWC’s Vision | Complete plumbing global leader Everything rough plumbing Broad portfolio of plumbing products and systems Aimed at both Residential & Commercial end markets Across new construction, repair and remodel Distributed through wholesale, retail and OEM channels 25
Slide 26: 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 27: Strategic growth initiatives
Strategic growth initiatives Global strategy, local execution Commercial Americas: Residential repair & plumbing through a Larger remodel and Growth across three areas remodel through combination of new residential new continued channel product development construction partner expansion and bolt-on
Slide 28: 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