Reliance Worldwide Corp. Ltd. · ASX:RWC
Reliance Worldwide — Shareholder Meeting (October 2023)
24 slides from Reliance Worldwide's shareholder meeting presentation, Oct 26, 2023
Slide 1: 2023 Annual General Meeting
2023 Annual General Meeting 26 October 2023 RELIANCE WORLDWIDE CORPORATION LIMITED ABN 46 610 855 877
Slide 2: Important notice
Important notice This presentation contains general information about the activities of Reliance Worldwide Corporation Limited and its operating businesses at the date of presentation (26 October 2023). It is information given in summary form and does not purport to be complete. It should be read in
Slide 3: RWC Board of Directors
RWC Board of Directors Stuart Crosby Heath Sharp Christine Bartlett Russell Chenu Non-Executive Chairman Chief Executive Officer Independent Non-Executive Independent Non-Executive Director Director Darlene Knight Sharon McCrohan Ian Rowden Brad Soller Independent Non-Executive Independent Non-Execu
Slide 4: Chairman’s address
Chairman’s address Stuart Crosby 4
Slide 5: FY23 Financial Highlights
FY23 Financial Highlights All figures in US$ Net sales Net sales Adjusted EBITDA Adjusted NPAT $1,243.8 million 268.7 million $274.6 $155.7 million $1,172.2 million +6% growth overall1 +17% growth on pcp +3% on pcp +2% -4% on pcp +9% constant currency growth +5% excluding EZ-Flo -3% excluding +5% on
Slide 6: Higher operating cash flow: net debt reduced by $116m
Higher operating cash flow: net debt reduced by $116m Debt metrics US$m 30-Jun-23 30-Jun-22 Cash and cash equivalents 16.6 27.7 Gross debt 451.7 578.7 Net debt1 435.0 551.1 Net debt / EBITDA2 1.69x 2.1x 1 Net debt excludes lease liabilities 2 Net Debt/12 month trailing EBITDA 6
Slide 7: FY23 Dividend
FY23 Dividend FY23 Dividend pay-out ratio of 54% of Reported NPAT, 48% of Adjusted NPAT 80 Total Dividends Declared Total Dividends Declared Total Dividends Paid 15.0 (US$m) 9.8 (US Cents Per Share) (A$ Cents Per Share) 78 14.5 9.6 9.5 9.5 14.2 76 75.1 75.1 9.4 14.0 74 72 9.2 13.5 13.4 70 9.0 13.0 6
Slide 8: RWC Board Committee Chairs
RWC Board Committee Chairs Sharon McCrohan Darlene Knight Russell Chenu Christine Bartlett Chair – ESG Chair – Health & Safety Chair – Audit & Risk Chair – Nomination & Committee Committee Committee (to 26 October 23) Remuneration Committee Brad Soller Chair – Audit & Risk Committee (from 26 October
Slide 9: ESG FY23 Highlights
ESG FY23 Highlights GHG Scope 1 & 2 Results 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 FY21 FY22 FY23 Scope 1 Scope 2 Target Line 9
Slide 10: Health & Safety
Health & Safety Reportable Injury Frequency Rate 7 6.2 6.1 6 5.2 5 4.9 4 3 2 1 0 FY20 FY21 FY22 FY23 Reportable Injury Frequency Rate 10
Slide 11: Remuneration
Remuneration ▪ The remuneration market for CEO’s in the US has moved significantly since 2021, particularly for LTI awards ▪ A review of CEO remuneration arrangements, including LTI opportunity in FY23, resulted in several changes to RWC’s LTI framework ▪ US and Australian external consultants provi
Slide 12: CEO’s address
CEO’s address Heath Sharp 12
Slide 13: FY23 Overview
FY23 Overview Resilient performance despite significant economic headwinds Ongoing outperformance relative to market ▪ 9% constant currency sales growth including EZ-Flo1, 3% excluding EZ-Flo Resilience of core R&M market sector reconfirmed ▪ Focus on non-discretionary repair projects and backlog of
Slide 14: Segment results: Americas
Segment results: Americas Revenue and EBITDA growth from EZ-Flo acquisition Americas Half Year Revenue Trend US$m FY23 FY22 % Change (US$m) 470 Net Sales 890.1 791.0 13% 460 Adjusted EBITDA1, 2 159.5 133.8 19% 450 440 Adjusted EBITDA margin (%) 17.9% 16.9% 100bps 430 1, 2 Adjusted EBIT 131.0 111.5 1
Slide 15: Segment results: Asia Pacific
Segment results: Asia Pacific Transfer of SharkBite manufacturing to the US impacted volumes A$m FY23 FY22 % Change APAC Half Year Revenue Trend (A$m) Net Sales 282.7 293.5 (4%) 150 Adjusted EBITDA1 47.2 58.7 (20%) 130 Adjusted EBITDA margin (%) 16.7% 20.0% (330bps) 110 Adjusted EBIT1 33.2 44.6 (26%
Slide 16: Segment results: EMEA
Segment results: EMEA UK sales up 7%, Continental Europe sales down 5% on pcp £m FY23 FY22 % Change EMEA Half Year Revenue Trend (£m) Net Sales 226.0 218.8 3% 120 Adjusted EBITDA1, 2 72.9 74.3 (2%) 110 100 Adjusted EBITDA margin (%) 32.3% 34.0% (170bps) 90 Adjusted EBIT1, 2 61.5 64.2 (4%) 80 70 Adju
Slide 17: FY23 Operational Highlight: 2 new product ranges launched
FY23 Operational Highlight: 2 new product ranges launched SharkBite Max and PEX-a/Expansion Fitting range launched in Americas ▪ North American launch on 23 March 2023 ▪ 5-phase SKU rollout over 15 months, completion expected end of FY24 ▪ Phases 1 and 2 completed, Phase 3 now underway ▪ Transfer of
Slide 18: FY23 Operational Highlight: manufacturing reconfiguration
FY23 Operational Highlight: manufacturing reconfiguration Reshaping of Australia manufacturing footprint with production transferred to the US ▪ SharkBite Max design has enabled some manufacturing and all assembly of North American product to shift from Australia to the US ▪ Injection moulding of al
Slide 19: 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 20: RWC named Lowe’s Plumbing Vendor Partner of the Year
RWC named Lowe’s Plumbing Vendor Partner of the Year 2023 was the 4th time RWC has achieved this in our 7-year relationship 20
Slide 21: First quarter trading update
First quarter trading update Ongoing resilience of R&R globally continues to underpin the business ▪ Trading is in line with expectations Americas ▪ Sales down low single-digit percentage points ▪ Lower remodelling activity levels ▪ Trading is in line with expectations, sales down mid-single digit p
Slide 22: Outlook for FY24
Outlook for FY24 ▪ Expect sales to be down by low single-digit percentage points ▪ EBITDA margins in FY24 expected to be higher than FY23, following SharkBite Max Americas production transfer from Australia to the US ▪ Phased timing means this will be more evident in the 2nd Half ▪ External sales ex
Slide 23: Our Focus for 2024
Our Focus for 2024 Position RWC to reap benefits of a stronger, fitter business once demand returns ▪ Everyone safe every day: deliver further progress in Health and Safety performance ▪ Continue above market growth in all key geographies ▪ Execute on new product initiatives launched in 4th Quarter
Slide 24: Plumbing matters. We make it better.
Plumbing matters. We make it better.
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