Ann: RWC FY23 Half Year Results Presentation, page-3

The briefing will be online later but a few points:

the CEO said currency moves had been 'significant'

The $15 million cost reduction is driven by lower volumes. Opertaing efficiencies (factories) are part: we had to look harder. RWC will take advantage of automation, so a greater proportion of production can be put through automatically given less volumes. Supply chains will also yield some savings. With EZ-Flo, it has a strong sourcing team in US/mainland China so will use that.

Finally making 'changes to structure of organisation' which is 'painful.' (Redundancies!)

In the USA, good time for change in leadership: Will Killpatrick departing. Restructuring needs some tough decisions that have been made.

In EMEA, this market 'got tough earlier'. Headcount is down around 10 per cent from the original plan: a freeze and 'tightened the reins'. Volumes have declined quite an amount but margin rate in EMEA stayed at 32 per cent.

We know 'what levers to pull' but have 'seen it before', Mr Sharp said.

(He didn't give numbers of employees being retrenched, nor what redundancy costs might be).

The CFO said as supply chains normalise, one would expect inventory to reduce.

The CEO said that price increases had averaged 8.5 per cent in 1H 23. It will have further discussions with clients as required.

Repair and remodelling in Australia and Pacific is a bit more than half leveraged to new construction in Australia (much more than in USA or Europe/UK/Middle East). I took it from this from Oz is far more vulnerable to a slowdown in new construction.

By region/product route/channel, it's a dynamic pricing environment. Prices in USA are appropriate (although obviously lags). Resins are tough: if they move up in cost, it'll affect prices. Wages and other costs are also important.