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RWC ASX ANNOUNCEMENT 26 October 2021 Reliance Worldwide Corporation Limited Level 26 140 William Street Melbourne Victoria 3000 Australia Tel : +61 ( 0 ) 3 8352 1400 TRADING UPDATE FOR QUARTER ENDED 30 SEPTEMBER 2021 Reliance Worldwide Corporation Limited ( ASX : RWC ) ( " RWC " or " the Company " ) has today provided a trading update for the three months ended 30 September 2021¹ . RWC experienced sales growth over the prior corresponding period ( " pcp " ) in all three regions , with reported net sales up 8 % overall to $ 246 million² . Operating earnings³ represented by Earnings before Interest and Tax were 5 % higher over pcp , and up 4 % on an Adjusted basis . Underlying demand remained strong in all three regions , reflecting continuing consumer investment in home improvement that has driven repair and remodelling activity . However , supply chain issues relating to shipping and freight delays , materials shortages , and delays elsewhere in the construction sector have constrained top line growth rates . This has been particularly acute in the UK where a shortage of transport drivers coupled with materials supply constraints is adversely impacting residential construction and remodelling activity . As we foreshadowed in August at the FY21 results announcement , operating margins were lower , impacted by price rises introduced to cover input cost inflation particularly copper , resins , and steel . Other cost pressures including shipping and freight along with rising energy costs also negatively impacted margins . Net debt of $ 160.3 million at 30 September 2021 was lower than the pcp but was $ 29.9 million higher than at 30 June 2021. This was due to payment of the $ 28 million purchase price on completion of the LCL acquisition in August , as well as higher capital expenditure and planned inventory increases . Inventories have grown versus pcp with investments to help mitigate on - going supply chain issues and to improve our ability to service our customer base . At quarter end RWC had $ 408 million of cash and unutilised committed facilities available . The total limit available under its syndicated facility agreement has been increased by A $ 100 million to A $ 850 million . The additional tranche has a maturity date of 30 September 2023. RWC expects to have headroom of approximately US $ 127 million following completion of the EZ - FLO International acquisition³ . RWC remains in compliance with the terms of its borrowing agreements . 1 The financial results are extracted from unaudited management accounts . RWC's standard processes were followed to confirm the material accuracy of the results . All figures are in US $ unless otherwise specified . 3 EBITDA , Adjusted EBITDA , and Adjusted EBIT are non - IFRS measures used by RWC to assess operating performance and have not been subject to audit or audit review . 4 EBITDA and EBIT adjustments for Q1 FY22 : Adjustments exclude one - off items of LCL acquisition costs and the gain on sale of the StreamLabs business . See separate ASX announcement dated 26 October 2021 . ABN 46 610 855 877 1 rwc.com