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RWC Reliance Worldwide Corporation Limited Level 26 140 William Street Melbourne Victoria 3000 Australia Tel : +61 ( 0 ) 3 83521400 27 January 2021 TRADING UPDATE FOR SIX MONTHS ENDED 31 DECEMBER 2020 Net sales of $ 642 million , up 13 % on the prior corresponding period ( " pcp " ) EBITDA¹ expected to be in the range of $ 164 million to $ 167 million , up at least 30 % versus pcp Strong cash generation with a further reduction in net debt of $ 76 million in the period Reliance Worldwide Corporation Limited ( ASX : RWC ) ( " RWC " or " the Company " ) has today provided a trading update for the six months ended 31 December 2020. These results remain subject to finalisation and audit review . The Company will release its 2021 half year financial results on Monday 22 February 2021 . RWC Group Chief Executive Officer , Mr. Heath Sharp said RWC had performed strongly in the first half of the 2021 financial year with every region recording strong sales and operating earnings growth and the Group continuing to generate strong cash flows . " We achieved 13 % net sales growth for the half , and 17 % net sales growth on a constant currency basis . This has translated into strong operating earnings performance , with EBITDA expected to be up by at least 30 % on the prior corresponding period . EBITDA margins have increased as a result of the strong operational leverage driven by higher volumes , and each region is expected to report strong margin expansion for the period . Despite the challenges presented by the COVID - 19 pandemic , we have kept all our manufacturing facilities operating and our focus on execution has enabled us to meet the increased demand we have seen across our markets . " At the same time , cost reduction initiatives have also helped to lift margins . We delivered cost savings in the first half and are on track to meet our target of $ 25 million in annual cost savings on a run rate basis by the end of the 2021 financial year . Cash generation has been another feature of the half with a further reduction in net debt of $ 76 million in the period . RWC's leverage ratio² at 31 December 2020 had reduced to 0.88 times from 1.57 times a year ago . " The first half of the 2021 financial year has undoubtedly been a strong period for RWC and we are pleased with how the Group has performed in demanding circumstances . Given the continuing uncertainties in all our markets because of COVID - 19 we would caution against extrapolating the first half sales performance for the full year . We note that copper cost increases will negatively impact earnings in the second half and currency translation impacts may also adversely impact reported earnings " , Mr Sharp said . GROUP PERFORMANCE SUMMARY REVENUE • Net sales of $ 642 million , up 13 % on pcp . • Net sales growth on a constant currency basis of 17 % on pcp . OPERATING EARNINGS • EBITDA expected to be in the range of $ 164 million to $ 167 million , up at least 30 % versus pcp . 1 EBITDA means Earnings before interest , tax , depreciation and amortisation 2 Net debt ( excluding leases ) to EBITDA , based on historical EBITDA for a 12 - month period ended 31 December 2020 1 ABN 46 610 855 877 rwc.com