Reliance Worldwide Corp. Ltd. · ASX:RWC

Reliance Worldwide — H1 FY2018 Earnings Presentation

17 slides from Reliance Worldwide's earnings presentation, Feb 26, 2018

  1. Slide 1: Reliance Worldwide Corporation 1HFY18 Results Presentation

    RELIANCE WORLDWIDE CORPORATION LIMITED ACN 610855877 THFY18 RESULTS PRESENTATION 4 26 February 2018

  2. Slide 2: Important Notice

    Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (26 February 2018). It is information given in summary form and does not purport to be complete. The presentation is not an offer or invitation for su

  3. Slide 3: Agenda

    Agenda 1. Highlights 3 2. Financial Performance 6 3. Growth Strategy and Outlook 15 Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 2

  4. Slide 4: 1. Highlights

    1. Highlights Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 3

  5. Slide 5: 1HFY18 Achievements

    1HFY18 Achievements  Continued strong sales growth in the Americas led by core SharkBite products Double digit growth in external sales in Australia and the UK  Completed integration of Holdrite acquisition with performance in line with  expectations  Completed seamless rollout of product to all

  6. Slide 6: 1HFY18 Financial Highlights

    1HFY18 Financial Highlights Net sales    EBITDA NPAT $362.6 million $79.3 million $41.5 million +28% growth1, +31% on a +25% growth1, +27% on a 8.0 cents per share (basic), +19% constant currency basis constant currency basis growth1     Continued strong Balance Sheet Interim dividend sales g

  7. Slide 7: 2. Financial Performance

    2. Financial Performance Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 6

  8. Slide 8: 1HFY18 Results

    1HFY18 Results June year end (A$m) 1HFY18 1HFY17 Variance (%) Commentary Net sales 362.6 282.7 28.3%  Net sales up 28% compared to 1HFY17 (+31% on a constant currency basis) EBITDA 79.3 63.7 24.5%  Solid performance across all 3 segments1: Americas EBIT 67.8 54.7 23.9% (+34%), Asia Pacific (+10%)

  9. Slide 9: Segment Results – Americas

    Segment Results – Americas June year end (A$m) 1HFY18 1HFY17 Variance Net sales1 266.8 198.8 + 34.2% EBITDA 52.9 37.1 + 42.6% EBITDA margin 19.8% 18.7% + 110 bps Financial commentary Operational commentary  Net sales growth of 34% compared to 1HFY17 (+39% on a  Holdrite integration completed on sc

  10. Slide 10: Segment Results – Asia Pacific

    Segment Results – Asia Pacific June year end (A$m) 1HFY18 1HFY17 Variance Net sales1 121.6 110.9 + 9.6% EBITDA 29.9 27.1 + 10.3% EBITDA margin 24.6% 24.4% + 20 bps Financial commentary Operational commentary  Net sales growth of 10% compared to 1HFY17  Strong SharkBite production  Double digit gr

  11. Slide 11: Segment Results – EMEA

    Segment Results – EMEA June year end (A$m) 1HFY18 1HFY17 Variance Net sales1 29.4 23.7 24.1% EBITDA (0.4) 0.8 nm EBITDA margin (1.4%) 3.4% - 480 bps Financial commentary Operational commentary  Net sales increase of 24% compared to 1HFY17 (+23% on a  Ongoing production efficiency improvements in S

  12. Slide 12: Strong Cash Flow Generation

    Strong Cash Flow Generation Commentary June year end (A$m) 1HFY18 1HFY17 Variance  Free cash flow generation3 of EBITDA 79.3 63.7 + 24.5% $39.0m in 1HFY18 Non-cash items in EBITDA (0.2) (0.2) + 0.0%  Lower conversion ratio reflects Changes in working capital (23.3) (9.9) - 135.4% investment in inv

  13. Slide 13: Balance Sheet Strength

    Balance Sheet Strength Debt metrics Commentary A$m 31 December 2017 30 June 2017  Strong balance sheet with net leverage reduced to 1.79x at 31 Cash and cash equivalents 25.0 35.0 December 2017 Gross debt 268.4 270.4  Higher inventories compared with 30 June 2017 to support growth in Net debt 243.

  14. Slide 14: 3. Growth Strategy and Outlook

    3. Growth Strategy and Outlook Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 13

  15. Slide 15: Overview of Growth Strategy

    Overview of Growth Strategy Invest in the core • Continued penetration of core brass PTC fittings & accessories in Americas • Growth in core valves, pipe, thermostats across all existing geographies Disciplined M&A to accelerate growth Create new solutions • Pursue adjacent “tuck Drives under” oppor

  16. Slide 16: FY18 Outlook

    FY18 Outlook FY2018 forecast EBITDA of between $150 million and $155 million1   Continued market penetration of SharkBite PTC fittings and accessories in the Americas Increased penetration of residential and commercial new construction markets with Holdrite and  EvoPEX products  Positive net imp

  17. Slide 17: Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 20

    Reliance Worldwide Corporation Limited INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 20

Reliance Worldwide — H1 FY2018 Earnings Presentation on 6ix