Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — FY2021 Earnings Presentation
23 slides from Metro Performance Glass's earnings presentation, May 21, 2021
Slide 1: FY21 Annual Results Presentation
METRO PERFORMANCE GLASS FY21 Annual Results Presentation 21 May 2021
Slide 2: Key messages
Key messages • The Metroglass Group displayed resilience throughout FY21, supported by the strength and dedication of its people • Metroglass delivered a solid result in the competitive NZ market, while COVID‐19 shutdown impacts overshadowed underlying performance • The Australian business turnaroun
Slide 3: Our strategy and values
Our strategy and values hal I OW/ OUR VISION OUR PURPOSE FOR CUSTOMERS To be the leader Making lives By providing the best service in glass solutions brighter every day FOR OUR PEOPLE By providing a great place to work The Metro Way SAFETY PRODUCT & OUR OUR OWNING PROCESS QUALITY CUSTOMER PEOPLE OUR
Slide 4: Unified and resilient throughout a disruptive year
Unified and resilient throughout a disruptive year OUR PEOPLE • Strong focus on safety and wellbeing • Resilient and united team able to adapt at pace and maintain service to customers • First cohort of staff completed our award‐winning Brighter Minds programme • Growing apprenticeship scheme with 8
Slide 5: FY21 key financial outcomes
FY21 key financial outcomes1 GROUP Revenue NEW ZEALAND 2 $232.3m ‐9% (FY20: $254.9m) Revenue EBIT $179.8m, ‐11% $19.4m, ‐27% EBIT NPAT (FY20: $203.0m) (FY20: $26.4m) $17.9m ‐18% $7.9m ‐21% (FY20: $21.8m) (FY20: $9.9m) AUSTRALIA Revenue EBIT Net debt Leverage ratio $52.5m, +1% ($0.7m), +$2.9m $48.0m
Slide 6: Residential consents have continued to grow in NZ, despite the pandemic
Residential consents have continued to grow in NZ, despite the pandemic. Though the momentum of actual activity has been impacted by significant disruptions Total NZ residential consents (9 month lagged, by number) NZ non‐residential consents (by value $bn)2 5.9% 8.1% 37,614 34,804 5.3% 32,860 ‐0.4%
Slide 7: Solid performance in New Zealand, while COVID-19 shutdown impacts overshadowed underlying performance
Solid performance in New • Metroglass responded well to fluctuating COVID‐19 restrictions and international supply chain disruptions, however these shocks significantly impacted momentum across the industry Zealand, while COVID‐19 • shutdown impacts The business ramped up after COVID‐19 Alert Level
Slide 8: Residential construction activity in southeast Australia has stabilised
Residential construction activity in southeast Australia has stabilised, as high‐ performance double‐glazing penetration continues to increase South east Australia: house approvals (6m lagged, by number)1 South east Australia: housing data (rolling 12 months)2 20% 73,869 ‐10.2% 1.1% 15% 13% 66,359 6
Slide 9: The Australian turnaround progressed well with stable operational performance
The Australian turnaround • Australian Glass Group (AGG) is now a leading supplier of high‐performance double‐ glazed units throughout southeast of Australia, with its solid service performance progressed well with recognised in the market stable operational performance and a • AGG faced prolonged C
Slide 10: FY21: Metroglass Group revenue (NZ$)
Fy21: Metroglass Group revenue (NZ$) $254.9m $232.3m FY20 FY21 $141.6m $118.2m $51.9m $52.5m $40.1m $36.8m $21.3m $24.9m Residential NZ Commercial Glazing NZ Retrofit NZ Australian Glass Group Total group revenue (17%) (8%) 16% 1% (9%) (11%) NZ revenue for the 10 months excluding Group revenue for t
Slide 11: FY21: Financial results summary
FY21: Financial results summary Group results Segment results FY21 FY202 % change FY21 FY20 % change NZ$m1 NZ$m1,3 Group New Zealand Revenue 232.3 254.9 (9%) Revenue 179.8 203.0 (11%) EBITDA before significant items 38.4 43.4 (12%) Gross profit 86.4 104.1 (17%) Depreciation & amortisation 20.4 21.7
Slide 12: FY21: EBIT bridge (NZ$m)
12 FY20 EBIT 21.8 Change in April and May NZ EBIT ‐ COVID‐19 Alert Level 4 and 3 10.5 lockdowns Note: EBIT is before before significant items. NZ Government wage subsidy 6.1 ‐ COVID‐19 NZ revenue decline 1.8 (June 20 ‐ March 21) FY21: EBIT bridge (NZ$m) NZ gross profit % decline New Zealand 3.0 (Jun
Slide 13: FY21: Group summary cash flow & balance sheet
FY21: Group summary cash flow & balance sheet Key cash flow items (NZ$m) FY21 FY20 • Net operating cash flows were slightly below last year with the impacts of the COVID‐19 shutdown period only being partially offset by cost savings and the NZ Government wage EBIT before significant items 17.9 21.8
Slide 14: Net debt reduced by $18.9m in FY21
Net debt reduced by $18.9m in FY21 supported by strong operating cash flows, focused capital expenditure and prudent cost management $94.3m $83.3m $66.9m $48.0m Mar‐18 Mar‐19 Mar‐20 Mar‐21 14
Slide 15: Board reassesses its approach to capital allocation
A stronger balance sheet and increased confidence in the Group’s market positions and future financial performance has enabled the Board to reassess its approach to capital allocation • The priority order for the use of capital going forward will be: New Zealand AGG Net operating cash flow Net opera
Slide 16: Metroglass' dividend policy
Metroglass’ dividend policy • Despite the disruptions from COVID‐19, the success of Metroglass’ debt reduction means that the group is expecting to achieve its communicated target of a net debt to EBITDA ratio of 1.5x in the first half of FY22 • The Board’s current intention is to resume dividend pa
Slide 17: Outlook for FY22 – healthy pipeline of work
Outlook for FY22 – healthy pipeline of work • Increasing confidence that activity levels across both NZ and Australia will be at Change image least sustained at current levels for the rest of the 2021 calendar year, though in NZ industry capacity constraints may limit growth in the near term • The r
Slide 18: We remain focussed on our strategy and near-term goals
We remain focussed on our strategy and near‐term goals Building resilience and Grow and improve Our balance sheet is defending Metroglass’ profitability in Australia, strong and robust to leadership position in benefiting from increasing cope with future risks New Zealand demand for double‐glazing a
Slide 19: Q&A
Q&A 19
Slide 20: Appendix: Reconciliation of non-GAAP to GAAP profit measures
Appendix: Reconciliation of non‐GAAP to GAAP profit measures FY21 FY20 Non‐GAAP financial information Full year to 31 March ($M) ($M) • Group results are reported under NZ IFRS. This presentation includes non‐ GAAP financial measures which are not prepared in accordance with NZ IFRS, Profit for the
Slide 21: Appendix: FY21 half on half performance
Appendix: FY21 half on half performance Segment results (NZ$m) 1H19 2H19 1H20 2H20 1H21 2H21 New Zealand Commercial 24.2 28.3 22.8 17.3 18.0 18.8 Residential 76.7 66.5 74.9 66.6 59.1 59.0 Retrofit 12.2 9.7 11.8 9.5 12.1 12.8 1 Total revenue 113.0 104.4 109.6 93.4 89.2 90.6 Gross profit % 51.0% 50.4%
Slide 22: 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 23: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki, Auckland 2013 Ph: + 64 9 927 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@metroglass.co.
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