REECE LIMITED — Earnings Release 2015

Aug 26, 2015

Full Year Results F2015

Announcement 27[th] August 2015

Snapshot

NPBT*

Sales Revenue 17.4%  to $2,085m

23.3%  to $228m

NPAT** 34.6%  to $166m

Dividends $0.12  to $0.76

• Net profit before tax and unrealised gain on foreign exchange contracts

** Net profit after tax and unrealised gain on foreign exchange contracts

• Record sales and profit results in FY2015

 Strong underlying performance of Reece Group with the inclusion of 12 months of FY2015 Actrol Group results

 Continued investment in people, the branch network, new products and process improvement

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Strong sales performance

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$2,085
$1,776
$1,564
$1,507 $1,503 $1,519 $1,535
$1,437
$1,309
$1,113
$m FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
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Sales Revenue

17.4%  to $2,085m

• Sales exceeded $2b for the first time

• Actrol Group integration progressing as planned with results in line with expectations

• Building activity at record levels

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Increased NPBT *

*before unrealised gain/loss on foreign exchange contracts

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$228
$185
$171
$163 $162 $163 $163
$149
$140
$125
$m FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
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Profit Before Tax*

23.3%  to $228m

• Improved online experience and upgraded back end systems

• Launched a number of new and innovative products

• Grew market leading exclusive brands

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Increased NPAT *

*after unrealised gain/loss on foreign exchange contracts

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$166
$123
$119 $119
$114 $114 $113
$103
$97
$87
$m FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
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Profit After Tax*

34.6%  to $166m

• Continue to use forward exchange contracts to manage currency risk

• Unrealised gain on foreign currency contracts of $10.4m driven by the devaluation of the AUD

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Continuing to invest

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$90
$81
$67 $68
$66 $65
$61
$53
$44
$33
$m FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
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Investment

• Opened 14 new branches

• Enhanced in-store experience with refurbishment of existing branches

• Development of core technology to deliver better customer service

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Note: Investment in property, plant and equipment (excludes acquisition of Actrol Group in 2014)

Solid dividend growth

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$76
$64
$61 $61 $62
$57 $58
$52 $51
$44
$m FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
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Dividends

18.8%  to $75,696

• Final dividend of 52 cents per fully franked share

• Total dividends paid and to be paid relating to FY2015 is 76 cents per share

• Total dividends up 12 cents from the prior year

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Full Year Results F2015

Announcement 27[th] August 2015