REECE LIMITED — Earnings Release 2016

Aug 24, 2016

FY 2016 Full Year Results

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Announcement 25[th] August 2016

Snapshot

NPBT*

Sales Revenue 9.2%  to $2,276m

23.2%  to $281m

NPAT** 16.1%  to $192m

Dividends 21.1%  to $0.92

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

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

• Record sales , profit and dividends in FY 2016

 Continued to invest in logistics, development of new products and improving customer service

• Includes profit on sale of property and impairment charge to goodwill

• Underlying business performing well

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Record sales performance

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$2,276
$2,085
$1,776
$1,507 $1,503 $1,564 $1,519 $1,535
$1,437
$1,309
$m FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Sales Revenue

9.2%  to $2,276m

• Underlying Reece business continuing to perform well

• Building activity at record levels

• Grew market leading exclusive brands

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Increased NPBT *

*before tax and unrealised gain/loss on foreign exchange contracts

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$281
$228
$185
$171
$163 $162 $163 $163
$149
$140
$m FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Profit Before Tax*

23.2%  to $281m

• Investment in branch network & distribution centres

• Profit on sale of property in NSW

• Impairment to goodwill recognised for AC Components, subsidiary of Actrol Group

• Actrol Group integration complete and positioned to deliver future value to shareholders

Increased NPAT *

*after unrealised gain/loss on foreign exchange contracts

Profit After Tax*

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$192
$166
$123
$119 $119
$114 $114 $113
$103
$97
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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16.1%  to $192m

• Continue to use forward exchange contracts to manage currency risk

• Unrealised loss on foreign currency contracts of $0.8m (2015 gain $10.4m )

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$m

Record dividend

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$92
$76
$64
$61 $61 $62
$57 $58
$52 $51
$m FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Dividends

21.1%  to $91.6m

• Dividend payment up 16 cents from the prior year

• Final dividend of 65 cents per fully franked share

• Total dividends paid and to be paid relating to FY 2016 is 92 cents per share

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FY 2016 Full Year Results

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Announcement 25[th] August 2016