Reliance Worldwide : Appendix 4D and interim financial report

For personal use only

21 February 2022

Results for announcement to the market

Appendix 4D for the half year ended 31 December 2021

Reliance Worldwide Corporation Limited (ASX: RWC) ("Company") announces the following financial results for the Company and its controlled entities (together "RWC") for the six months ended 31 December 20211.

RWC is a global market leader and manufacturer of water delivery, control and optimisation systems for the modern built environment. RWC pioneers and innovates plumbing products for residential, commercial and industrial applications. RWC's unique end-to-end meter to fixture and floor to ceiling plumbing and heating solutions target the repair, renovation, service, new construction and remodel markets. RWC manufactures and distributes products that disrupt and transform traditional plumbing methods by aiming to make the end user's job quicker and easier. RWC is the leading manufacturer in the world of brass Push-to-Connect ("PTC") plumbing fittings and a global leader in the manufacture and distribution of plastic PTC fittings and accessories. Following the acquisition of EZ-FLO International in November 2021, RWC is now also positioned as a leader in supporting those who service major appliance installations, including plumbed appliances, gas, hot water and dryer venting.

	Six months	Six months
Extracted from the 31 December 2021 Interim	ended	ended
Financial Report which has been reviewed by the	31 Dec	31 Dec
Company's auditor	2021	2020	Change
	US$'000	US$'000
Revenue from ordinary activities	521,835	464,189	12.4%
Net profit from ordinary activities after tax attributable
to members	63,736	65,913	(3.3%)
Net profit after tax attributable to members	63,736	65,913	(3.3%)

1 RWC changed its presentation currency to US dollars in the current financial year. Comparative profit or loss results for the six months ended 31 December 2020 previously reported in Australian dollars have been translated into US dollars using average exchange rates for that period. Comparative balance sheet items at 30 June 2021 have been translated using exchange rates at that date. The translation of non-IFRS comparatives has not been subject to audit or audit review. Please refer to Note 1(c) in the 31 December 2021 Interim Financial Report for additional information.

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Comparison with prior period
Six months ended:	31 December	31 December	Variance
	2021	20202
	US$ million	US$ million
Net sales	521.8	464.2	12%
EBITDA3	119.6	120.0	-
Adjusted for one-time items:
‐ Net EZ-FLO and LCL acquisition costs, gain	5.9	-	n/m
on sale of StreamLabs, debt financing costs
expensed4
Adjusted EBITDA3	125.5	120.0	5%
Reported net profit before tax	92.0	94.8	(3%)
Tax Expense	(28.3)	(28.9)	(2%)
Reported net profit after tax	63.7	65.9	(3%)
Adjusted for:
‐ Cash tax benefit of goodwill amortisation for	5.7	5.7	-
tax purposes5
‐ Net EZ-FLO and LCL acquisition costs,	5.9	-	n/m
gain on sale of StreamLabs, debt
refinancing costs expensed6
Adjusted net profit after tax3	75.4	71.6	5%
Basic earnings per share	8.1 cents	8.4 cents	(3%)
Adjusted earnings per share3	9.6 cents	9.1 cents	5%
Dividend per share	4.5 cents
n/m = not meaningful

Please also refer to the accompanying 31 December 2021 Interim Financial Report, Results Announcement and presentation slides released today for further information.

1. RWC changed its presentation currency to US dollars in the current financial year. Comparative profit or loss results for the six months ended 31 December 2020 previously reported in Australian dollars have been translated into US dollars using average exchange rates for that period. Comparative balance sheet items at 30 June 2021 have been translated using exchange rates at that date. The translation of non-IFRS comparatives has not been subject to audit or audit review. Please refer to Note 1(c) in the 31 December 2021 Interim Financial Report for additional information.
2. EBITDA means earnings before interest, tax, depreciation and amortisation; EBITDA, Adjusted EBITDA, Adjusted net profit after tax and Adjusted earnings per share are non-IFRS measures. These measures are used by RWC in order to enhance comparability from period to period and to assess operating performance. They have not been subject to audit or audit review.
3. Adjustments comprise: (i) Acquisition costs relating to LCL and EZ-FLO ($7.0 million); (ii) Inventory step up unwind ($1.3 million); (iii) Gain on sale of StreamLabs $2.5 million; (iv) Expensing of costs relating to previous debt facility ($0.1 million).
4. RWC is entitled to claim amortisation of certain intangibles for taxation purposes under longstanding tax concessions available in the USA. Goodwill is not amortised for accounting purposes under accounting standards.
5. Adjustments comprise: (i) Acquisition costs relating to LCL and EZ-FLO ($5.7 million); (ii) Inventory step up unwind ($1.3 million); (iii) Gain on sale of StreamLabs $1.9 million; (iv) Expensing of costs relating to previous debt facility ($0.1 million); (v) Non-cashwrite-off of capitalised debt cost ($0.7 million).

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Earnings per share

Weighted average earnings per share (basic) for the six months ended 31 December 2021 were US8.1 cents (2020 - US8.4 cents). Adjusted earnings per share were US9.6 cents (2020 - US9.1 cents), up 5% on the prior period.

Dividend for the six months ended 31 December 2021

			31	31
	31	31	December	December
	2021	2020
Six months ended:	December	December	Franked	Franked
2021	20207	amount	amount
Interim	US4.5cps	US4.3cps	20%	20%
Amount payable or paid	US$35.6m	US$34.3m

The dividend will be paid in Australian dollars at 6.285 cents per share.8 The record date for entitlement to receive the interim dividend is 11 March 2022. The payment date is 8 April 2022. The Company does not have a dividend reinvestment plan.

A final dividend for the 2021 financial year of AU7.0 cents per share franked to 20% was paid to eligible shareholders on 8 October 2021.

Net Tangible Assets per Share

Net tangible assets per share at 31 December 2021 were US$0.03 (30 June 2021 - US$0.34).

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The remainder of the information requiring disclosure to comply with ASX Listing Rule 4.2A.3 is contained in the 31 December 2021 Interim Financial Report, Results Announcement and presentation slides released today. These documents should be read in conjunction with this and each other document.

For further information, please contact:

Phil King

Group Investor Relations Director

Tel: [phone]

Email: [e-mail]

This announcement has been authorised for release by the Board of Reliance Worldwide Corporation Limited.

1. Declared and paid in Australian dollars at 6.0cps.
2. Converted to Australian currency using the average exchange rate over the five business days ended 17 February 2022.

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Reliance Worldwide Corporation Limited

ABN 46 610 855 877

Interim Financial Report

31 December 2021

For personal use only

Table of Contents
Directors' Report .................................................................................................................................................................	2
Auditor's Independence Declaration ...................................................................................................................................	4
Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income ....................................................................	5
Consolidated Statement of Financial Position .....................................................................................................................	6
Consolidated Statement of Changes of Equity....................................................................................................................	7
Consolidated Statement of Cash Flows ..............................................................................................................................	8
Notes to the Consolidated Financial Statements.................................................................................................................	9
Directors' Declaration........................................................................................................................................................	23
Independent Auditor's Review Report...............................................................................................................................	24

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