Slide 1: 2019 Half Year Results Presentation
2019 Half Year Results Presentation
Slide 2: Important Notice and 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 3: Contents and agenda
Contents and agenda Financial HY19 HY19 Focus Financial Summary Performance Peter Wilson, CEO & MD Gavin Street, CFO 3 2019 Half Year Results The Reece Group - Works for you
Slide 4: Financial Summary
Financial Summary 4 2019 Half Year Results The Reece Group - Works for you
Slide 5: HY19 Summary
Financial Summary HY19 Summary Sales Revenue Normalised NPAT** 104% to $2,718 million 20% to $127 million Normalised EBITDA* NPAT 45% to $260 million 8% to $98 million * Normalised EBITDA excludes business acquisition costs and finance income * * Normalised NPAT excludes business acquisition costs 5
Slide 6: Financial Highlights: Sales Revenue
Financial Highlights HY18 - $1,332m Sales Revenue A$2,718m HY19 - $2,718m 104% Column1 $2,718 ■ Record sales result ■ Strong like for like sales $1,211 $1,332 $1,141 ■ Acquisitions in USA & NZ $1,050 HY15 HY16 HY17 HY18 HY19 6 2019 Half Year Results The Reece Group - Works for you
Slide 7: Financial Highlights: Normalised EBITDA
Financial Highlights HY18 - $179.0m Normalised EBITDA A$260.1m HY19 - $260.1m* 45% $260 ■ Solid performance in $179 underlying business $164 $155 ■ MORSCO delivering to $133 expectations ■ Continuing to invest in people & technology HY15 HY16 HY17 HY18 HY19 7 2019 Half Year Results The Reece Group -
Slide 8: Financial Highlights: NPAT
Financial Highlights HY18 - $105.7m NPAT A$98m HY19 - $97.8m 8% $96 $106 $127 $98 $90 $80 ■ Impact of one off acquisition costs ■ NPAT excluding acquisition costs was up 20% HY15 HY16 HY17 HY18 HY19 Normalised NPAT 8 2019 Half Year Results The Reece Group - Works for you
Slide 9: Segment Performance
HY19 Financial Performance Segment Performance Sales Revenue 2,718 ■ Top end of guidance 1,332 1,465 1,253 1,332 ■ ANZ sales revenue up 10% ■ Continuing to invest in people & technology ANZ USA Total 2017 2018 ■ MORSCO in line with expectations Normalised EBITDA ■ Mix of business impact on EBITDA 26
Slide 10: Dividends
Financial Highlights HY18 – 6 cps Dividends 6 cps HY19 – 6 cps CAGR 5.7% 6.00 6.00 5.80 5.40 ■ Interim dividend declared 4.80 maintained at 6 cents per share ■ Total cash dividend paid up 12.6% FY15 FY16 FY17 FY18 FY19 10 2019 Half Year Results The Reece Group - Works for you
Slide 11: Underlying Australian economic indicators remain supportive
Financial Highlights Underlying Australian economic indicators remain supportive Dwelling Approvals Dwelling Completions (000’s) (000’s) 219 212 219 231 239 232 202 222 192 193 199 194 176 161 162 168 165 173 150 151 146 148 149 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY09 FY10 FY11 F
Slide 12: Positive momentum sustained in US market
Positive momentum sustained in US market Single and multi-family housing starts 2006 – 2020E Leading indicator of remodeling activity – Q4 2018 Four-Quarter Moving Homeowner Improvements & Repairs (‘000’s) Single Family Multi-Family Rate Change Four-Quarter Moving Totals Historical Estimates LIRA Pr
Slide 13: Half Year Highlights
Half Year Highlights 13 2019 Half Year Results The Reece Group - Works for you
Slide 14: Three focus areas in first half
Half Year Highlights Three focus areas in first half Customer > Digitisation > MORSCO integration 14 2019 Half Year Results The Reece Group - Works for you
Slide 15: Works for you.
Half Year Highlights Works for you. 15 2019 Half Year Results The Reece Group - Works for you
Slide 16: Outlets +20
Half Year Highlights +20 10 122 OUTLETS 54 45 177 33 179 15 16 2019 Half Year Results The Reece Group - Works for you
Slide 17: NZ presence continues to grow
Half Year Highlights NZ presence continues to grow 17 2019 Half Year Results The Reece Group - Works for you
Slide 18: Delivering market leading products
Half-Year Highlights Delivering market leading products 18 2019 Half Year Results The Reece Group - Works for you
Slide 19: Three focus areas in first half
Half Year Highlights Three focus areas in first half Customer > Digitisation > MORSCO integration 19 2019 Half Year Results The Reece Group - Works for you
Slide 20: Technology strategy at the heart of our business
Half Year Highlights Technology strategy at the heart of our business 20 2019 Half Year Results The Reece Group - Works for you
Slide 21: Digital enhancements driven by customer insights
Half Year Highlights Digital enhancements driven by customer insights + = Human Centred Design Customer Insight New online Products and Services 21 2019 Half Year Results The Reece Group - Works for you
Slide 22: Innovation strategy embedded
Half Year Highlights Innovation culture and Innovation capability strategy embedded Brand New ideas that experiences protect and that fuel growth grow Reece 22 2019 Half Year Results The Reece Group - Works for you
Slide 23: Three focus areas in first half
Half Year Highlights Three focus areas in first half Customer > Digitisation > MORSCO integration 23 2019 Half Year Results The Reece Group - Works for you
Slide 24: Listening & learning about MORSCO
Half Year Highlights Listening & learning about MORSCO 24 2019 Half Year Results The Reece Group - Works for you
Slide 25: Working together to build our Vision & Strategy
Half Year Highlights Working together to build our Vision & Strategy ✓ ✓ ✓ Purpose Values Vision 25 2019 Half Year Results The Reece Group - Works for you
Slide 26: MORSCO +2 outlets
MORSCO Half Year Highlights +2 OUTLETS Plumbing branch Waterworks branch HVAC branch 26 2019 Half Year Results The Reece Group - Works for you
Slide 27: Contents and agenda
Contents and agenda Financial HY19 Operational Financial Highlights Highlights Performance Peter Wilson, CEO & MD Gavin Street, CFO 27 2019 Half Year Results The Reece Group - Works for you
Slide 28: HY19 Financial Performance
HY19 Financial Performance 28 2019 Half Year Results The Reece Group - Works for you
Slide 29: Results summary
HY19 Financial Performance Results summary December half year (A$m) HY19 HY18 Var. ■ Normalised EBITDA at top end of (%) guidance Net sales 2,718 1,332 104 ■ NPAT down 8% due to recognition of Normalised EBITDA 260 179 45 acquisition costs EBIT 192 154 25 ■ MORSCO results in line with NPAT 98 106 (8
Slide 30: Cash Flow
HY19 Financial Performance Cash Flow December half year (A$m) HY19A HY18A Net Working Capital 1200 (FY14A–HY19A) 0.25 Normalised EBITDA* 260 179 1000 Net movements in working capital (111) (26) 800 0.2 600 Non-cash items in EBITDA 1 0 400 0.15 Income Tax Paid (59) (59) 200 Finance Costs (41) (3) 0 0
Slide 31: Balance Sheet Net debt
HY19 Financial Performance Balance Sheet Net debt As at 31 As at 31 December half year end (A$m) Dec 2018 Jun 2018 1,595 Cash and cash equivalents 99 540 Total debt 1,694 0 Net debt 1,595 0 Financial asset (FX derivative) 45 0 151 90 40 -2 Net debt including FX derivative 1,550 (540) impact Leverage
Slide 32: HY19 Summary
HY19 Summary Enhancing Stronger Digitisation MORSCO customer Innovation presence continues on track experience in NZ 32 2019 Half Year Results The Reece Group - Works for you
Slide 33: Q&As
Q&As 33 2019 Half Year Results The Reece Group - Works for you
Slide 34: Thank you
Thank you 34 2019 Half Year Results The Reece Group - Works for you