ACCG923 - RWC Ltd: Analysis of Financial Reporting & Disclosures

This case study provides an analysis of Reliance Worldwide Corporation Limited's (RWC) 2017 annual report, focusing on the financial highlights, Chairman's report, and Chief Executive Officer's report. It examines the company's performance, including net sales, EBITDA, and NPAT, comparing them against prospectus forecasts. Key achievements, such as the rollout of SharkBite products and the acquisition of Holdrite, are discussed. The report also delves into RWC's growth strategy, product innovation, and customer relationships. Furthermore, it addresses the ACCG923 Accounting Standards and Practice S1, 2018 assignment brief, requiring a detailed explanation of impairment write-downs made by the company, including a discussion of impaired assets and alignment with AASB 136 requirements.

RELIANCE WORLDWIDE CORPORATION LIMITED
ACN 610 855 877
ANNUAL
REPORT
2017

1Annual Report 2017
Contents
Financial Highlights 2
Chairman’s Report 3
Chief Executive Officer’s Report 4
Operating and Financial Review 6
Corporate Governance Statement 10
Financial Report 16
Directors’ Report 16
Remuneration Report 22
Auditor’s Independence Declaration 32
Consolidated Statement of Profit or Loss and Other Comprehensive Income33
Consolidated Statement of Financial Position 34
Consolidated Statement of Changes in Equity 35
Consolidated Statement of Cash Flows 36
Notes to the Consolidated Financial Statements 37
Directors’ Declaration 63
Independent Auditor’s Report 64
Shareholder Information 69
Corporate Directory 72
1Annual Report 2017

2 Reliance Worldwide Corporation Limited
FINANCIAL HIGHLIGHTS
$601.7m
Net sales
FY2017 Net sales, EBITDA and NPAT all ahead of
Prospectus Forecast1
Strong net sales
growth from Americas
+19% growth vs pro forma FY20162
Strong balance sheet
at 30 June 2017
(net leverage of 1.95x)
$120.7m
EBITDA
+22% growth vs pro forma FY20162
$65.6m
NPAT
+26% growth vs pro forma FY20162
82.4%
Free cash flow conversion
of EBITDA
6.0 cents
per share
Total dividend for FY2017 o
NPAT Payout ratio of 48%
1. Prospectus dated 18 April 2016.
2. Pro forma unaudited results for the 12 months ending 30 June 2016 prepared on the same basis as set out in the Prospectus.
+13% growth vs pro forma FY20162

3Annual Report 2017
IMPORTANT NOTICESCHAIRMAN’S REPORT
Dear fellow shareholders,
On behalf of the Board, I am pleased to present
to you the 2017 Annual Report of Reliance
Worldwide Corporation Limited (“RWC”). This is
the first full year report following the successful
listing of the Company’s shares on the Australian
Securities Exchange on 29 April 2016.
The financial results for FY2017 have continued
our track record of delivering strong sales and
earnings growth. Pleasingly, we exceeded
the sales and profit forecasts contained in the
Prospectus issued for the ASX listing.
RWC is a leader in the design, manufacture and
supply of premium branded, high quality water
flow and control products and solutions for the
plumbing industry. We are a global business with
manufacturing and distribution operations in the
USA, Australia, the UK, Canada, New Zealand
and Spain. RWC’s key products and solutions
are primarily used in “Behind the Wall” plumbing
and hot water systems. These products and
solutions include pipe fittings and related pipe,
control valves and thermostatic products and
are used for both residential and commercial
applications, with a principal focus on the
residential repair and renovation end-market.
Key achievements during the past year include:
• Continued strong growth in sales, particularly
for Push-to Connect (“PTC”) fittings in the
Americas;
• Completion of the first phase of the rollout of
SharkBite PTC fittings and accessories into
Lowe’s Home Improvement Centers in the
USA. The second phase of the rollout will
be completed in the first half of FY2018 so
that SharkBite will then be in an additional
1,700+ outlets in the USA;
• Sales of PTC to The Home Depot (“THD”)
continuing to grow. We continued to work on
new projects with THD;
• Acquiring the Holdrite business in June
2017. Holdrite brings complementary
engineered products to RWC. Holdrite is well
established in the residential and commercial
new construction sectors. The acquisition
provides some exciting new products and
will aid our efforts to expand penetration into
those sectors;
• Launch of the EvoPEX PTC system into the
residential new construction sector; and
• We continue to invest in new product
development and technology. Work
continues on developing connected
devices for application within the Internet
of WaterTM platform.
The following report from our Chief Executive
Officer, Heath Sharp, and the accompanying
review of operations provide commentary on
performance and business outlook.
The balance sheet remains strong and we have
significant liquidity available to fund projected
growth. Financing facilities were increased by
$100 million during the year, in part to fund
the Holdrite acquisition, with the maturity date
extended to 30 September 2020.
RWC now has a global workforce of over
1,100 employees who bring a diverse range
of capabilities and skills. On behalf of the
Board, I would like to recognise and thank our
management team and employees for their
efforts and dedication which continue to deliver
strong outcomes.
I also take this opportunity to thank shareholders
for your ongoing support and look forward to
meeting with you at the Annual General Meeting
to be held on 30 October 2017.
Jonathan Munz
Chairman

4 Reliance Worldwide Corporation Limited
Dear shareholders,
I am pleased to report the excellent business
performance of your Company for the year
ended 30 June 2017, with operating and financial
results exceeding sales and profit forecasts1. In
this, our first full-year report since RWC’s shares
were listed on the ASX, the Company can report
outstanding growth in net sales2 and earnings
with strong and sustainable growth expected to
continue in FY2018.
I could not be prouder of
our people
It is a rare opportunity to be part of a team that
delivers the forecasts in a prospectus year. The
entire RWC team deserves credit for delivering
such outstanding financial and operating results.
We have a team that enthusiastically comes
together to collaborate across all our geographic
and market segments – aligning activities,
sharing innovative ideas, raising performance
levels, rising to meet immediate challenges and
adapting to the public company environment –
while making decisions for the long-term growth
of the business.
RWC is fortunate to have a unique culture
that underpins our success. Our long-serving
workforce readily welcomes new talent and
embraces diversity, creating an exciting, dynamic
atmosphere that allows us to attract and retain
the best people. One standout example is our
Cullman, Alabama workforce which comprises a
tremendous group of people, both longstanding
and more recent team members, and is
proudly represented by roughly equal numbers
of men and women, an employment ratio
that is highly unusual in a manufacturing and
distribution operation.
A fundamental tenet of our culture is that
everyone deserves to return home at the end
of the day as healthy as they started. We
commenced implementing wellness programs
in a number of locations with other locations to
follow. To sharpen our focus on shop-floor safety,
we are aligning safety reporting protocols and
metrics across all locations. We look forward to
reporting on the results of these initiatives.
I offer my sincere gratitude to the global RWC
team for their continuing dedication to the
business during the past 12 months. Their efforts
are generating outstanding total shareholder
returns and are positioning us to achieve and
sustain growth.
I would also like to thank the Board for its
continuing support and guidance.
Holdrite: the newest
RWC business
The Holdrite acquisition was completed in June
2017. Holdrite brings to RWC a broad range of
innovative products that are installed immediately
adjacent to SharkBite and Cash Acme products
in residential and commercial buildings and
sold via our existing sales channels. Holdrite is
a product development and commercialisation
engine that belies its size. As we deepen our
understanding of Holdrite, we become even
more delighted with the move to join our
companies. Perhaps the most pleasing aspect
is the tremendous culture, so closely aligned
with RWC’s. The Holdrite team have built a great
business. They are a very welcome addition to
the RWC family.
IMPORTANT NOTICESCHIEF EXECUTIVE OFFICER’S REPORT

5Annual Report 2017
1 This report should be read in conjunction with the Operating and Financial Review commentary on page 6.
2. Net sales after eliminating intercompany sales.
3. Pro forma unaudited results for the 12 months ended 30 June 2016 prepared on the same basis as set out in the Prospectus dated 18 April 2016. Comparis
the Pro Forma FY2016 results as comparison with the FY2016 Statutory Period results is not considered meaningful. The FY2016 Statutory Period covered
incorporation of the Company on 19 February 2016 to 30 June 2016 with Australian trading operations consolidated from 6 April 2016 and non-Australian t
consolidated from 3 May 2016. The FY2016 Statutory Period results are presented in the 30 June 2017 Financial Report.
4. Forecast results presented in the Prospectus dated 18 April 2016.
5. EBITDA and EBIT both before significant items (including non-operating foreign exchange gains and losses) in Pro Forma FY2016.
Products: Innovation drives
our strategy
As a global provider of water control systems and
plumbing solutions for domestic, commercial
and industrial applications, RWC recognises that
meeting demand for market-leading products
requires ongoing investment in research and
development, training, and manufacturing
and distribution facilities. We have long
been known for products that exceed global
industry standards. Creating new products,
smarter products, products that solve real-
world problems, products that improve lives
and living conditions is the vision that drives
RWC’s strategy.
Our flagship line, SharkBite Push-to-Connect
(“PTC”) plumbing fittings and associated
accessories, continues to lead sales growth and
market penetration in the residential repair and
remodel markets, particularly in the Americas,
where our efforts to build brand awareness
and expand retail distribution are proving
quite successful.
The launch of the EvoPEX system, the first PTC
meter-to-fixture solution specifically optimised
for new construction, together with the Holdrite
product range of engineered solutions for the
plumbing and mechanical contractor markets,
are now driving penetration into the residential
and commercial new construction markets in
the USA.
By design, all RWC products are transformative
to traditional plumbing methods. SharkBite led
this concept in the USA starting in 2004. Now
with Holdrite, we expand to converting makeshift
methods into commercialised engineered
solutions, making plumbing installations faster
and easier, performance more reliable and the
tradesman’s tasks more efficient. Our goal is
to be the premier supplier of superior platforms
and product solutions for all “Behind the Wall”
plumbing requirements, from meter to fixture in
sectors that include not only residential repair
and maintenance but also in residential and
commercial new construction. We expect to
continue introducing these sector-changing
innovations as we expand market share
and penetration.
Customers
Of course, without our customers, we have no
business. Our beginnings, more than 60 years
ago in Australia, have seen multiple decade
relationships with world class performers such
as Reece and Rheem Australia. In 2017, we
celebrated the 15th anniversary of the acquisition
of Cash Acme which has seen the building of
relationships with leading names in the North
American plumbing industry, including A.O.
Smith, Bradford White, Ferguson, Ace Hardware
and Wolseley Canada. This year also marked
the 10th anniversary of supplying The Home
Depot, a commercial partnership that created a
powerhouse PTC fitting franchise in the big-box
retail channel. This year we are also delighted
to welcome Lowe’s to the SharkBite PTC family.
We are proud of these relationships and look
forward to developing them further in coming
years. Our long time and ongoing goal is to
always make RWC an easy company with which
to do business.
FY2017 Financial Review:
A continuous record of
strong annual growth1
Our record of strong annual growth continued
in FY2017 with outstanding financial results
achieved. Net sales2 grew by 12.6% compared
with pro forma FY20163, an impressive 2.4%
above Prospectus Forecast4. On a constant
currency basis, net sales2 increased by 17.2%
with local currency growth in all operating
segments. The Compound Annual Growth Rate
in net sales2 over the last 10 financial years
is 12%, an increase principally attributable to
continued expansion of the core SharkBite PTC
business in the Americas operating segment.
EBITDA5, EBIT5 and NPAT showed double digit
growth compared with pro forma FY20163 and
also exceeded Prospectus Forecasts4, reflecting
the combined benefits of strong growth in
net sales, careful procurement initiatives and
improvements in manufacturing efficiencies.
Increased selling, general and administrative
expenses in the second half, including costs to
support retail channel expansion activities in the
Americas and expensing of transaction costs
associated with the Holdrite acquisition, partiall
offset these results.
I look forward to providing shareholders with
further updates on our progress in products
and performance.
Heath Sharp
Chief Executive Officer

6 Reliance Worldwide Corporation Limited
IMPORTANT NOTICESOPERATING AND FINANCIAL REVIEW
This Operating and Financial Review forms part of, and should be read in conjunction with, the statutory Directors’ Report for the year ended
Results for the financial year
Actual
FY2017
($m)
Pro Forma
FY20161
($m)
Variance
(%)
Prospectus
Forecast2
FY2017
($m)
Variance
(%)
Net sales 601.7 534.4 12.6 587.8 2.4
EBITDA3 120.7 99.1 21.8 117.7 2.5
EBIT3 101.3 82.7 22.5 97.8 3.6
Net profit after tax 65.6 52.1 25.9 62.6 4.8
Group Overview
RWC is a leader in the design, manufacture and supply of water flow and control products and solutions for use in “behind the wall” plumbing
clear number one manufacturer in the world of brass PTC plumbing fittings which are sold under our SharkBite brand. PTC replaces the tradit
intensive crimp and expansion PEX systems and copper solder fittings.
The SharkBite PTC business in North America is at the core of the RWC growth story and that business continued to deliver strong double dig
FY2017. RWC has continued its strategic focus on building awareness of SharkBite PTC fittings and associated accessories to drive sales grow
penetration. The majority of SharkBite PTC sales are in the defensive repair and maintenance and renovation end markets.
The launch of the EvoPEX PTC system into target markets late in 2016 began our penetration into the residential new construction sector in N
Penetration into this sector has been expanded following completion of the Holdrite acquisition. Holdrite also provides us with expansion into
construction market. Holdrite’s results have been consolidated from 12 June 2017 and are included in the Americas segment. Revenue and p
from Holdrite in FY2017 was minimal given the short period of inclusion.
RWC has 12 manufacturing facilities across Australia, New Zealand, the USA and Spain. Manufacturing of SharkBite SKUs for the Americas se
to be transitioned to Cullman, Alabama following the successful completion of the installation and commissioning of two new SharkBite PTC fi
cells at that facility during 2016. Holdrite products are manufactured at a facility in Tennessee, USA.
Group Results Review
Net sales for FY2017 of $601.7 million were 12.6% higher than for Pro Forma FY20161 (17.2% higher on a constant currency basis) and 2.4% ahead of
Prospectus Forecast2. The increase was driven principally through continued expansion of SharkBite PTC business in the Americas operating seg
including a sales benefit in the second half from the initial rollout of product to approximately half of Lowe’s 1,700+ stores in the USA. This w
by a decline in the AUD translated value of sales in the EMEA segment that was primarily due to a materially stronger AUD/GBP exchange rat
On a local currency basis, sales in the UK increased 7.5% on the prior year.
EBITDA was $120.7 million, an increase of 21.8% over Pro Forma FY20161 and 2.5% ahead of Prospectus Forecast2. This strong result reflects growth
in net sales combined with benefits of procurement initiatives and improved manufacturing efficiencies achieved during the year. Partially off
was increased SG&A spending in the second half to support retail channel expansion activities in the Americas together with expensing trans
associated with the Holdrite acquisition.
Net profit after tax (“NPAT”) was also ahead of Prospectus Forecast at $65.6 million, an increase of 25.9% over Pro Forma FY20161 and 4.8% ahead of
Prospectus Forecast.
Segment Review
Americas
Actual
FY2017
($m)
Pro Forma
FY20161
($m) Variance
Prospectus
Forecast2
FY2017
($m) Variance
Net sales4 435.3 365.0 19.3% 397.6 9.5%
EBITDA3 74.6 58.4 27.7% 69.3 7.6%
EBITDA margin 17.1% 16.0% +110 bps 17.4% -30 bps

7Annual Report 2017
The Americas segment delivered solid growth in net sales and EBITDA. Net sales for the year were $435.3 million4, an increase of 19.3% over Pro Forma
FY20161 (23.4% increase on a constant currency basis) and 9.5% ahead of Prospectus Forecast2. EBITDA contribution was $74.6 million, an increase of
27.7% over Pro Forma FY20161 and 7.6% ahead of Prospectus Forecast2. The Americas performance was driven by continued market penetration of S
products and execution of the retail channel strategy in the USA. Procurement and other ongoing cost saving initiatives also contributed t
improvement compared with Pro Forma FY2016. The EBITDA margin was slightly lower than Prospectus Forecast mainly as a result of exp
related transaction costs and set up costs incurred for the roll out to Lowe’s.
The segment enjoyed strong growth across all market sectors and product groups with continued investment in building awareness, expa
and educating end users about the efficiency and effectiveness of RWC’s core SharkBite products and solutions.
As noted at the half year result, we benefited from the impact of customers increasing their inventory levels in anticipation of potential fre
during the North American winter. No weather conditions which RWC would classify as a freeze event eventuated and, as a result, custom
their inventory levels during the second half consistent with what occurred in FY2016. Customers have returned to normal buying pattern
Asia Pacific
Actual
FY2017
($m)
Pro Forma
FY20161
($m) Variance
Prospectus
Forecast2
FY2017
($m) Variance
Net sales4 218.1 201.0 8.5% 209.8 4.0%
EBITDA3 47.5 39.3 20.9% 45.6 4.2%
EBITDA margin 21.8% 19.6% +220 bps 21.7% +10 bps
Asia Pacific delivered net sales of $218.1 million4, an increase of 8.5% over Pro Forma FY20161 and 4.0% ahead of Prospectus Forecast2. Growth was mainly
achieved from increased sales to the Americas. External sales saw demand from Wholesale customers partially offset by somewhat lower
channel.
EBITDA for the year was $47.5 million, an increase of 20.9% over the comparative period and 4.2% ahead of Prospectus Forecast2. Asia Pacific also achieved
savings from procurement activities, ongoing manufacturing efficiencies and other cost saving initiatives.
EBITDA margin for the year was 21.8%, up from 19.6% for Pro Forma FY2016 but below the 24.4% achieved in the first half of FY2017. Th
seasonality in the business, with production volumes increasing in the December half year period in preparation for the northern hemisph
the relatively higher cost of copper experienced in the second half. Production for the Lowe’s rollout helped the second half margin for As
EMEA
Actual
FY2017
($m)
Pro Forma
FY20161
($m) Variance
Prospectus
Forecast2
FY2017
($m) Variance
Net sales4 50.1 51.1 (2.0%) 67.2 (25.4%)
EBITDA3 0.5 3.8 (86.8%) 5.2 (90.4%)
EBITDA margin 1.0% 7.4% -640 bps 7.7% -670 bps
Net sales in EMEA were $50.1 million4, down 2.0% on Pro Forma FY20161 sales. Pleasingly, segment sales increased 19% in constant currencies with e
sales in the UK increasing by 7.5% in GBP. Uncertainty following Brexit adversely affected sales in the United Kingdom, particularly in the
the UK improved in the second half of the year. Demand from Wholesale customers, particularly for thermostatic products, remained stro
sales to OEM customers increased. A materially stronger AUD/GBP exchange rate impacted both the cost of goods sold and the translated
Spain continues to supply its PEX pipe product to Australia to meet external demand. Increased production capacity in the second half en
to support higher demand in local markets.
EBITDA in EMEA for the full year of $0.5 million declined slightly from $0.8 million at the half year. This reflects both the higher cost of goo
weakening of the GBP as well as a one-time non-cash expense of $1.0 million in the second half associated with restructuring and busines
initiatives in 2H FY2017 designed to position the UK business to better capitalise on its solutions-oriented value proposition to the market
Dividend
A fully franked final dividend for FY2017 of 3.0 cents per share has been declared. This takes the total dividend for FY2017 to 6.0 cents p
70%, which represents a NPAT payout ratio of 48%, within the targeted payout range of 40% to 60% stated in the Prospectus dated 18 Ap
date for dividend entitlement is 12 September 2017. The payment date is 10 October 2017. At the lower end of the targeted payout rang
dividends to continue to be fully franked for the foreseeable future.

8 Reliance Worldwide Corporation Limited
IMPORTANT NOTICESOPERATING AND FINANCIAL REVIEW
Capital expenditure
Capital expenditure payments during FY2017 totalled $25.5 million, split between maintenance expenditure ($13.3 million) and growth capit
($12.2 million). The latter included acquisition of a property in Cullman, Alabama, which is presently being utilised as a warehouse / distribut
well as the fit out of a previously acquired facility at the site. Both were acquired to support growing demand and the need for additional man
warehousing space.
Following regular review of our capital plans, growth expenditure was also incurred to build additional capacity to meet expected future dem
additional fitting capacity in the USA and Australia and increased PEX production capacity in Spain.
Some growth capital expenditure originally planned for FY2019 has been brought forward to FY2018, driven by sales growth in core SharkBite
in the USA, which has resulted in a requirement to pay equipment deposits during FY2017 given the lead time of up to 12 months required by
manufacturers.
The current program of investment in capacity expansion to meet forecast growth in demand for SharkBite PTC and EvoPEX fittings as well as
expected to be substantially completed during FY2018. Capital expenditure for FY2018 is currently forecast at $35 million.
Cash Flow
Cash flow from Operations for the period was $71.9 million. EBITDA performance, along with continued active management of inventory, trad
trade creditors delivered a strong cash conversion result. This result was achieved despite the increase in inventory levels in 2H FY2017 in pr
second phase of the Lowe’s store rollout, which will take place in 1H FY2018. We expect inventory levels to reduce as that rollout occurs.
Balance Sheet
The balance sheet at 30 June 2017 continued to be in a strong position with liquidity to support further growth.
Net debt at 30 June 2017 was $235.4 million (30 June 2016 - $127.9 million). The increase over 30 June 2016 reflects additional borrowings o
to fund the Holdrite acquisition partially offset by net cash generated from operations during the year being used to reduce borrowings.
Net Debt, including the effect of the Holdrite funding, to EBITDA was 1.95 times as at 30 June 2017 (30 June 2016 - 1.29 times) and EBIT to ne
was 20.2 times (30 June 2016 - 13.1 times). EBITDA and EBIT reflect contributions from Holdrite only for the post-acquisition period from 12 J
30 June 2017.
Health and Safety
RWC places a strong emphasis on the health and safety of our workforce and is committed to providing a safe and healthy workplace for all e
and contractors. We aim for zero harm across the group. A robust health and safety management system is maintained which assists in the id
potential issues and hazards and the development of strategies and initiatives to mitigate the risk of harm. We have a good track record in m
preventing injuries.
Strategy and Business Development Activities
Overview
As noted in the Group Overview, RWC’s core brass PTC fittings have been the primary driver of growth and are likely to remain so over the co
particularly in the Americas. RWC plans to continue its strong focus on building awareness of the SharkBite PTC fittings and associated acces
sales growth and market penetration in the repair and re-model markets. Expansion into the residential and commercial new construction ma
will be driven by the EvoPEX and Holdrite products.
The Company also continues to pursue and invest in other adjacent growth opportunities. These include products and solution systems that h
in both the residential new construction and repair and remodel markets as well as the commercial construction market (to include large mul
developments as well as office, retail, education, hospitality, health care facilities and other institutions). Of particular interest are products o
that support growth in more than one area. These effective “platform enablers” could be ones we develop, acquire or partner to develop. Wh
link them all together is their focus on conveying, regulating, controlling, filtering and monitoring water from the source to the fixture in a reli
manner and increasing the ease and efficiency of installation.
Beyond product and system solutions the Company also continues to explore and evaluate opportunities to expand sales and distribution into
geographic markets. Focus remains on key markets in the UK and continental Europe, developed and developing markets in Asia, and select
Central or South America.
Growth opportunities in new products and/or geographies could be pursued organically, through acquisition or via joint venture partnership. A
or partnerships will need to deliver products complementary to our existing product range or provide access to new distribution channels and
evaluated against RWC’s business strategy and investment criteria.

9Annual Report 2017
New product development and innovation
Product development and innovation remain a key pillar of RWC’s growth strategy. Holdrite, with its strong innovation culture, has added
RWC’s already strong Research and Development team has been enhanced following the Holdrite acquisition and will continue to focus on
innovative engineered product solutions to solve the everyday problems of plumbers and contractors and facilitate professional and time
the residential and commercial new construction markets, while creating value for our distributors.
The team has been undertaking preliminary work on Connected Devices, in the context of application within the Internet of WaterTM (“IoW”TM) platform.
During the year, we acquired intellectual property specifically related to this field which has advanced our capabilities in flow monitoring
IoWTM infrastructure. In the mid-term, this is expected to yield a number of unique water usage monitoring products which are expected to
although these are not expected to deliver significant revenue until after FY2019. Longer term, this area of development raises the possib
advancements, in conjunction with our existing product range, to move towards “smart plumbing” systems.
USA Retail Distribution arrangements
In the second half of FY2017, we successfully completed the rollout of RWC’s full range of SharkBite Plumbing Solutions – PTC fittings, PTC
PEX pipe and crimp fittings – to approximately half of Lowe’s home improvement centres. The rollout added to our revenue for FY2017 alt
contribution also reflects the set up and training costs incurred in the rollout. The final phase of the rollout has commenced and will be co
first half of FY2018.
We continued to work with The Home Depot (“THD”) to deliver growth in their sales. THD’s buying followed the same pattern as prior per
June. During June, THD commenced the process of destocking RWC’s PEX pipe and crimp fittings in all but a small number of its stores wh
entire SharkBite Plumbing Solutions platform. THD continues to stock and support RWC’s SharkBite PTC fittings and accessories across its
stores, excluding a small number of outlets in one region. Implementation of these changes is consistent with our expectations advised at
year results announcement in February.
RWC remains committed to investing in and supporting all our distribution partners with industry leading solutions and service and a broa
for plumbers.
FY2018 Outlook
RWC currently expects FY2018 EBITDA to be in the range of $145 million to $150 million. This compares with EBITDA of $120.7 million in
will be driven by continued strong top line growth expected from ongoing expansion of the PTC business in the Americas, inclusion of a fu
results and ongoing growth and targeted opportunities to gain market share in Asia Pacific and EMEA. The forecast assumes, among other
general economic conditions are maintained, including in the geographies where RWC operates and no significant changes to current fore
exchange rates, particularly USD/AUD and GBP/AUD5. We have also assumed the copper price in FY2018 to be similar to prices experienced during
second half of FY2017 noting that we buy brass bar from our suppliers who in turn mainly use scrap brass in their production cycle (with s
machining being the largest constituent).
1. Pro forma unaudited results for the 12 months ended 30 June 2016 prepared on the same basis as set out in the Prospectus dated 18 April 2016. Compari
the Pro Forma FY2016 results as comparison with the FY2016 Statutory Period results is not considered meaningful. The FY2016 Statutory Period covered
incorporation of the Company on 19 February 2016 to 30 June 2016 with Australian trading operations consolidated from 6 April 2016 and non-Australian t
consolidated from 3 May 2016. The FY2016 Statutory Period results are presented in the 30 June 2017 Financial Report.
2. Forecast results presented in the Prospectus dated 18 April 2016.
3. Before significant items (including non-operating foreign exchange gains and losses) in Pro Forma FY2016.
4. Prior to elimination of inter-segment sales.
5. RWC traditionally does not hedge foreign currency exposures. Unfavourable rate movements may erode the translated value of results in the Americas an

10 Reliance Worldwide Corporation Limited
CORPORATE GOVERNANCE STATEMENT
The Board of Directors is responsible for the overall corporate governance of Reliance Worldwide Corporation Limited (“the Company”) and it
entities (together “the Group”). The Board monitors the operational and financial position and performance of the Group and oversees its bus
including approving the strategic objectives, plans and budgets of the Group. The Board is committed to optimising performance and building
value for shareholders. In conducting business with these objectives, the Board seeks to ensure that the Group is properly managed to protec
shareholder interests and that the Group, its Directors, officers and personnel operate in an appropriate environment of corporate governanc
Board has created a framework for managing the Group, including adopting relevant internal controls, risk management processes and corpo
policies and practices that it believes are appropriate for the Group’s business and that are designed to promote responsible management an
the Group.
The Australian Securities Exchange (“ASX”) Corporate Governance Council has developed and released its Corporate Governance Principles a
Recommendations 3rd edition (“ASX Recommendations”) for entities listed on the ASX in order to promote investor confidence and to assist
meet stakeholder expectations. This Corporate Governance Statement outlines the key aspects of the Company’s governance framework and
practices which are consistent with the ASX Recommendations unless stated otherwise.
Details of the key policies and practices and the charters for the Board and each of its Committees are available on the Company’s website a
This statement has been approved by the Board of Reliance Worldwide Corporation Limited and is current at 28 September 2017.
Board and management
The Board has adopted a written charter to provide a framework for its effective operation. The Board Charter sets out details of the Board’s
role and responsibilities, the expected relationship and interaction between the Board and management, details of the responsibilities and fu
reserved to the Board and those authorities which can be delegated by the Board to management and Board Committees. A copy of the char
viewed on the Company’s website.
The Board’s role is to:
• represent and serve the interests of shareholders by overseeing and appraising the Group’s strategies, policies and performance. This inc
overseeing the financial and human resources the Group has in place to meet its objectives and reviewing management performance;
• protect and optimise Group performance and build sustainable value for shareholders in accordance with any duties and obligations impo
by law and the Company’s Constitution and within a framework of prudent and effective controls that enable risk to be assessed and man
• set, review and ensure compliance with the Company’s values and governance framework (including establishing and observing high ethi
and
• ensure shareholders are kept informed of the Group’s performance and major developments affecting its state of affairs.
The management function is delegated by the Board to the CEO (and to other officers to whom the management function is properly delegate
A delegation of authority document has been approved by the Board. Management must supply the Board with information in a form, timefra
that will enable the Board to discharge its duties effectively. Directors are entitled to request additional information at any time when they co
Appointment of Directors
The Company has a formal agreement in place with each Director setting out the terms of their appointment. Directors have rights of access
Company documents, management and Company advisors to assist in the performance of their duties.
The process for selecting directors for appointment to the Board is overseen by the Nomination and Remuneration Committee. The Nominatio
Remuneration Committee undertakes appropriate checks on any potential candidates before a person is appointed by the Board or put forwa
shareholders as a candidate for election as a director. The Company provides shareholders with all material information in its possession rele
on whether or not to elect or re-elect a director. This information is provided in the notice for the Annual General Meeting. Once appointed, th
and Remuneration Committee oversees processes to support a director’s induction and ongoing professional development and training oppo
Ongoing professional development and training activities for directors may include visits to operational facilities, new product demonstration
development team and management presentations.
The Board collectively and each Director individually has the right to seek independent professional advice at the Company’s expense subjec
of the Chairman or the Board as a whole.
Structure of the Board and Director independence
The composition of the Board at the date of this report is:
Jonathan Munz, Chairman
Heath Sharp, Managing Director and Chief Executive Officer
Russell Chenu, Independent, Non-executive Director
Stuart Crosby, Independent, Non-executive Director
Ross Dobinson, Independent, Non-executive Director