Ann: RWC FY22 Half Year Results Presentation, page-3

Answering questions at the investor briefing, CFO Mr Andrew Johnson said the inventory balance was high as it helped RWC to mitigate supply disruptions but it will be well into FY 23 before it significantly reduces.

Price rises will increase over the second half, approaching double digits by the end of FY 22. This will offset inflation but it is a dynamic environment. If copper goes beyond the predicted level, we'd have to take further action.

Re the long term outlook, Mr Heath Sharp, CEO, said FY 22 is very much a year of consolidating gains made in FY 21. The long term growth for this industry tends to be a couple of points of growth each year. Community members are renovating in what seems a structural change, and RWC expects it'll obtain some 'runoff' (accretion in activity).

CFO Mr Andrew Johnson said EzyFlo was in its early stages, with only six weeks' contribution in 1H 22. Its inventory is in pretty good shape.

In the USA, it looks like a 'normal winter'. There was a bit of weather in Texas in the last two weeks.

Re raw material costs, Mr Johnson said it wasn't hedging. It's holding higher raw material stocks to protect the business. It's in pretty good shape.

2H 21 was an incredible half for RWC: in 3Q 22, it won't see the margins it saw in 3Q 21, but they should return to where FY 21 ended that year.

The negative effect from 'not having freeze in FY 22' is best considered by how it caused a revenue uplift in FY 21 on a 'normal winter', so 'back out' the entirety of the previous year's freezing conditions.

Capital expenditure is expected in FY 23 to revert back to a more normal level. In FY 22, there's a fourth SharkBite line being installed.

With the EzyFlo acquisition, RWC is happy with, having 'bought the business we thought we did'. Restructuring was announced last week, and there should be some pick up in margins after a few months' lag. Revenue is at or even a little bit above what RWC expected. Major customer conversations indicate that they understand why RWC bought the business. It'll help make customers' shelf space more productive.

Re the price/cost lag, there was an EBITDA chart in the presentation.

The company isn't speculating on FY 23 margins as it's too early.

Supply chains from China to the USA has been no more challenging for EzyFlo than for RWC's other businesses sourcing from that area.

For 2H 22, RWC's expectation is that Lowe's warehouse changes are a one-off.