Reece Limited · ASX:REH
Reece — Shareholder Meeting (October 2023)
28 slides from Reece's shareholder meeting presentation, Oct 26, 2023
Slide 1: 2023 Annual General Meeting Addresses
ASX Announcement 26 October 2023 2023 Annual General Meeting Addresses Attached for release are the 2023 AGM addresses and presentation made today at today’s Reece Limited AGM. For further information contact: Siobhan Weaver Investor Relations E: siobhan.weaver@reece.com.au This announcement has bee
Slide 2: Chair Address – Tim Poole
Chair Address – Tim Poole Good morning. Reece has continued to execute its long-term growth strategy and delivered a strong result in FY23. SLIDE: Financial highlights Sales revenue was up 16% to $8.8 billion driven by product price inflation and moderating demand across all markets. Normalised EBIT
Slide 3: CEO presentation – Peter Wilson
• A recap on our FY23 performance • And an update on Q1 trading for FY24 SLIDE: Reece blueprint As we have outlined previously, our Blueprint guides what we do across all areas of our business. We are a purpose and values led organisation, and our 2030 vision is to be our trade’s most valuable partn
Slide 4: Financial highlights
SLIDE: Financial highlights Turning to look at FY23 in more detail. Sales were up 16% to 8.8 billion, and 11% on a constant currency basis. In ANZ, sales were up 10% to $3.9 billion, and in the US, sales were up 12% to 3.3 billion in US dollars. In both markets we saw product inflation and demand mo
Slide 5: Reece Group AGM 2023
Reece Group AGM 2023 1. 2023 AGM
Slide 6: 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 summary form and does not purport to be com
Slide 7: Chair’s Address
Chair’s Address Tim Poole
Slide 8: Financial highlights
Financial highlights Sales Normalised Statutory Adjusted Revenue* EBITDA1 NPAT NPAT up 16% up 16% down 1% up 11% to $8.8b to $975m to $388m to $405m Final dividend Total dividend 17 cents per share, 25 cents per share, fully franked fully franked *Group sales revenue up 11% on a constant currency ba
Slide 9: Thank you to all our employees in Australia, New Zealand and the United States
Thank you to all our employees in Australia, New Zealand and the United States of America.
Slide 10: Chair transition and Board update
Chair transition and Board update • Peter Wilson will move to Executive Chair in coming years. • Provides stability and continuity, while playing active role in business. • Committed to expanding the Board to add an independent director who will Chair our Audit and Risk Committee. 6. 2023 AGM
Slide 11: Group CEO’s Address
Group CEO’s Address Peter Wilson
Slide 12: Agenda
Agenda 01 02 03 Strategy and FY23 financial Q1 FY24 operational recap performance update recap 8. 2023 AGM
Slide 13: Strategy & operational recap
02 Strategy & operational recap 9. 2023 AGM
Slide 14: Our Blueprint
Our Blueprint Inspired Live the Embrace Execute Deliver by our Reece our 2030 Strategic Customer Purpose Way Vision Priorities Promise Our purpose and We will be our Operational Customised To improve the lives service of our customers values guide our trade’s most Excellence and our people by decisi
Slide 15: Strong FY23 operational execution under strategy
Strong FY23 operational execution under strategy Operational Accelerating Investing for Excellence Innovation Profitable Growth • Ongoing focus on being brilliant at the • Progressing innovation initiatives; focus on • US store rollout and Reece rebrand 2030 fundamentals, continuous trade of the fut
Slide 16: An established and growing network
An established and growing network 655 231 Branches Branches Market leader, leveraging network Roll out progressing at pace, density to deliver customer promise. growth platform for the long term. 12. 2023 AGM
Slide 17: Five years in the US
Five years in the US 80% ~30% USD sales revenue growth* team growth 3.1x 5 2030 EBIT growth** bolt-on acquisitions Our trade’s ~35% most valuable branch network growth commenced brand roll-out partner ~125% senior branch team growth launched *Revenue growth calculated from FY19 (first year post-acqu
Slide 18: FY23 financial performance recap
04 FY23 financial performance recap 14. 2023 AGM
Slide 19: Group performance
Group performance Group Adjusted EBIT & Sales Group ROCE 700 5,000 16.0% 9,000 600 4,500 14.0% 8,000 4,000 7,000 12.0% Sales revenue ($m) 500 Shareholders equity Adjusted EBIT ($m) 3,500 plus net debt ($m) 6,000 10.0% ROCE (%) 400 3,000 5,000 2,500 8.0% 300 4,000 2,000 6.0% 3,000 1,500 200 4.0% 2,00
Slide 20: Financial highlights
Financial highlights Sales Normalised Adjusted Adjusted Adjusted Revenue* EBITDA1 EBIT NPAT EPS up 16% up 16% up 19% up 11% up 11% to $8.8b to $975m to $668m to $405m to 63 cents From $7.7b From $838m From $562m From $363m Final dividend Total dividend Normalised Net leverage ratio2 EBITDA1 margin 1
Slide 21: Q1 FY24 update
05 Q1 FY24 update 17. 2023 AGM
Slide 22: Q1 FY24 Sales
18 Q1 FY24 Sales • Group sales up 3% on pcp, up 1% on constant currency basis5, slightly ahead of expectations Sales revenue • ANZ sales up 3% on pcp ($M) • Ongoing product inflation • Backlogs supported activity • US sales flat on USD basis • Slowdown in residential activity impacting demand as exp
Slide 23: Summary
06 Summary 19. 2023 AGM
Slide 24: Summary
Summary Strong Long-term Investing for Softening Result Focus the Future environment 20. FY23 Result
Slide 25: Reece Group
reece group"
Slide 26: Appendix & supplementary information
Appendix & supplementary information
Slide 27: Key FY23 metrics
Key FY23 metrics Reconciliation from Statutory EBIT to Adjusted EBIT Reconciliation from Statutory NPAT to Adjusted NPAT FY23 - 30 June 2023 (A$m) FY23 FY22 Var. % FY23 - 30 June 2023 (A$m) FY23 FY22 Var. % NPAT (statutory) 388 392 (1%) EBIT (statutory) 654 578 13% Add back (tax effected): Add back:
Slide 28: Group definitions
Group definitions EBITDA adjusted to exclude impairment, business acquisition costs and finance costs 1 Normalised EBITDA (as reported in note 2.1 of the Annual Report) 2 Net leverage ratio Net borrowings over 12-month rolling EBITDA, calculated on a pre-AASB16 Leases basis 3 Return on capital emplo