Slide 1: Metro Performance Glass FY20 Results Presentation
Metro Performance Glass FY20 Results Presentation 19 June 2020
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by Metro Performance Glass Limited (Company Number 5267882) (“Metro Performance Glass”). Please do not read this Presentation in isolation This presentation contains some forward looking statements about Metro Performance Glass and the
Slide 3: Introduction to the FY20 year
Introduction to the FY20 year Strong operating cashflows, targeted capital expenditure and cost management supported a strengthened group balance sheet, with net debt reducing by $16.5m, to $66.9 million. In New Zealand the strength in our customer relationships supported stable performance in our k
Slide 4: Overview of FY20 financial results
Overview of FY20 financial results Group revenue of $254.9m declined 5% vs. FY19 and Group EBIT1 of $23.2m 1 declined 8%, with a reduction in large‐scale commercial project exposures in NZ being offset to a degree by revenue growth in Australia NZ revenue of $203.0m (‐7%) and EBIT1 of $27.8m (‐11%),
Slide 5: Our goals
Deliver market leading customer service Our goals Develop our organisational capabilities Uphold scale & strength through product and channel leadership Leverage that scale to deliver solutions efficiently 5
Slide 6: Deliver market leading customer service; develop organisational capabilities
Deliver market leading Develop our organisational Uphold scale & strength Leverage scale to deliver customer service capabilities through product & channel solutions efficiently leadership • Positive feedback received in recent • Continued focus on instilling a • AGG delivered revenue growth • Rampe
Slide 7: NZ market: residential dwelling consent issuance continued to grow in FY20
NZ market: residential dwelling consent issuance continued to grow in FY20, but actual activity levels remained broadly in line with last year Total NZ residential consents (9 month lagged, by number) Volume of flat glass imported into NZ (non‐lagged, million square metres)3 +5.9% +7.9% 34,804 • 9 m
Slide 8: New Zealand's focus on enriching the customer relationship continues
New Zealand’s focus on • Metroglass operates in an increasingly competitive market and is enriching the customer committed to providing a differentiated and market‐leading customer experience. relationship continues to support our market • Customer feedback is increasingly reflecting our efforts to
Slide 9: Australian market: residential construction activity declined across our key states
Australian market: residential construction activity declined across our key states, offset by increased use of double glazing South east Australia house approvals (6mth lagged, by number)1 South east Australia alterations & additions (by value A$bn)2 73,705 +0.2% (2.1%) 68,182 (10.4%) 66,050 5.7 5.
Slide 10: AGG is building a focused glass processing business across south-eastern Australia
AGG is building a • Australian Glass Group (AGG) is on positive trajectory, focused glass processing achieving revenue growth despite soft market conditions business across south‐ and an EBITDA1 positive result for the second half of FY20. eastern Australia, • AGG’s clear strategy and marketing is s
Slide 11: FY20: Metroglass Group revenue (NZ$m)
FY20: Metroglass Group revenue (NZ$m) (5%) (7%) NZ 267.8 254.9 (1%) (24%) (2%) 143.1 141.6 3% (+5% in A$) 52.5 50.4 51.9 40.1 21.8 21.3 Residential NZ Commercial Glazing NZ Retrofit NZ Australian Glass Group Total group revenue FY19 FY20 Note: The allocation of sales between residential and commerci
Slide 12: FY20: Financial results summary
FY20: Financial results summary Group results FY20 FY19 % FY20 Segment results FY20 FY19 FY20 % change NZ$m1 Post IFRS 16 Pre IFRS 16 change Pre IFRS 16 NZ$m3 Post IFRS 16 Pre IFRS 16 Pre IFRS 16 Revenue 254.9 267.8 (5%) 254.9 New Zealand Revenue 203.0 217.4 (7%) 203.0 EBITDA before significant item
Slide 13: EBIT bridge: FY19 to FY20
FY19 EBIT 25.2 Underlying NZ gross profit 7.2 resulting from revenue decline Factory and Glazing cost savings 2.7 New Zealand NZ depreciation and amortisation 1.1 NZ other 0.4 EBIT bridge: FY19 to FY20 ($m) Tasmania growth 1.4 New South Wales cost savings 1.0 Australia Victorian sales mix 1.3 Other
Slide 14: FY20: Group summary cash flow & balance sheet
FY20: Group summary cash flow & balance sheet Key cash flow items FY20 FY19 FY20 • The group achieved reductions in working capital for the second (NZ$m) Post IFRS 16 Pre IFRS 16 Pre IFRS 16 successive year through close management of trade debtors and EBIT pre significant items 23.2 25.2 21.2 inven
Slide 15: Impairment of intangible assets in New Zealand
Impairment of intangible Intangible assets (NZ$m) Goodwill on acquisitions assets in New Zealand. Opening balance – 1 April 2019 140.0 Impairment of New Zealand goodwill (86.5) Foreign exchange impact (0.4) Closing balance – 31 March 2020 53.1 For the year ended 31 March 2020 • As a consequence of t
Slide 16: Looking forward, Metroglass will closely monitor market activity levels
Looking forward, Metroglass will closely monitor market activity levels and reposition itself appropriately to reflect the changing conditions The extent and prolonged nature of the anticipated declines in building activity are highly uncertain • As a result of COVID‐19 we now expect building activi
Slide 17: Metroglass will continue to reposition itself appropriately
Metroglass will continue to reposition itself appropriately to reflect the changing conditions Remain confident in our strategy and ability to adapt as required • In the coming year, we will work hard to support our customers with excellent service and maintain our market‐ leading position in New Ze
Slide 18: Appendix: Reconciliation of non-GAAP to GAAP profit measures
Appendix: Reconciliation of non‐GAAP to GAAP profit measures Non‐GAAP financial information FY20 FY19 Full year to 31 March 2020 • Group results are reported under NZ IFRS. This presentation includes non‐ ($M) ($M) GAAP financial measures which are not prepared in accordance with NZ IFRS, being: Pro
Slide 19: Appendix: FY20 half on half performance
Appendix: FY20 half on half performance Segment results Under IFRS 16 Under IFRS 16 Under IFRS 16 Under IFRS 16 Pre IFRS 16 Pre IFRS 16 (NZ$m) 2H20 1H20 2H19 1H19 2H20 1H20 New Zealand Commercial 17.3 22.8 28.3 24.2 17.3 22.8 Residential 66.6 74.9 66.5 76.7 66.6 74.9 Retrofit 9.5 11.8 9.7 12.2 9.5 1
Slide 20: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki Auckland 2013, New Zealand Ph: (+64) 09 927 3000 www.metroglass.co.nz/ Simon Mander – Chief Executive Officer Simon.Mander@metroglass.co.nz (+64) 029 636 2661 Brent Mealings– Chief Financial Officer Brent.Mealings@m