Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2016 Earnings Presentation
22 slides from Metro Performance Glass's earnings presentation, Nov 23, 2015
Slide 1: Metro Performance Glass
Metro Performance Glass Results for the 6 months ended 30 September 2015 Strictly confidential and not for public release
Slide 2: Agenda
Agenda 1. Overview – Nigel Rigby, CEO 2. Financial results – John Fraser-Mackenzie, CFO 3. Market trends and operational highlights – Nigel Rigby 4. Outlook – Nigel Rigby Strictly confidential and not for public release 1
Slide 3: Overview
Overview Strictly confidential and not for public release
Slide 4: 1H16: highlights and results summary
1H16: highlights and results summary In June, the new $21.5m Auckland automated processing plant was officially opened by New Zealand’s Prime Minister, the Rt. Hon John Key Strong sales growth achieved in the 6 months to 30 September 2015 despite lower than anticipated industry growth, +8.4% vs. pcp
Slide 5: Financial results
Financial results Strictly confidential and not for public release
Slide 6: 1H16: summary income statement
1H16: summary income statement $000’s 1H16 1H16 Var % Actual PFI Half year sales grew +8.4% vs. pcp and were +0.8% above Sales 94,863 94,081 0.8% both guidance and PFI Cost of sales 45,237 41,973 (7.8%) Gross profit 49,626 52,108 (4.8%) Lower gross profit driven by higher labour and raw Gross profit
Slide 7: 1H16: summary balance sheet
1H16: summary balance sheet $000’s Sept-15 Mar-15 Sept-15 Major plant-related capital investment programme Actual Actual PFI now complete Cash 2,752 7,609 11,369 – The Auckland plant will have some final pieces of Working capital 23,770 19,264 25,559 equipment installed in December, including a Deri
Slide 8: 1H16: summary cash flow statement
1H16: summary cash flow statement $000’s 1H16 1H16 Capital expenditure in this period related to: Var % Actual PFI – The purchase of enhanced glass edge- Receipts from customers 92,514 90,030 2.8% working machinery for the Auckland plant Payments to suppliers & employees (79,101) (72,793) (8.7%) Net
Slide 9: 1H16: interim dividend
IH16: interim dividend The Board declared a fully imputed interim dividend of 3.6 cents per share, to be paid on 22 January 2016 to all shareholders on the register as at 8 January 2016 This pay-out is consistent with the company’s dividend policy of paying between 55% and 75% of full year NPATA, we
Slide 10: Market trends and operational highlights
Market trends and operational highlights Strictly confidential and not for public release
Slide 11: Market conditions: macro trends
Market conditions: macro trends Construction activity and building consents have returned to pre global financial crisis levels, backed by record net migration, low interest rates and rising momentum in building activity New Zealand residential new build consents Revenues remain highly aligned to 9
Slide 12: Market conditions: regional trends
Market conditions: regional trends Residential building consent issuance grew 12% over the September quarter (vs. the June quarter), with consents for the twelve months to September reaching ~26,200 Commercial construction activity is also on an upward trajectory Momentum is rising in Auckland const
Slide 13: 1H16: operational highlights
1H16: operational highlights The four glass processing plants have handled increased volumes well, with significant room for future plant optimisation As a strongly customer focussed business, the primary key performance indicator for Metro Performance Glass is the proportion of customer orders ‘del
Slide 14: Key growth initiative: Commercial
Key growth initiative: Commercial The commercial business continues to perform well, Committed forward orders ($m) both in winning a high proportion of targeted projects and in subsequent execution 20 18.6 18 Beyond the record high forward order book, we see 16 13.8 significant growth opportunities
Slide 15: Key growth initiative: Retrofit
Key growth initiative: Retrofit Ran a highly successful TV advertising campaign in Retrofit sales, 1H15 vs. 1H16 ($000) April and May 2015. This resulted in significant inbound interest: +26% 8,000 – > 100% increase in leads year on year 6,000 – > 75% increase in quotes and acceptances year 4,000 on
Slide 16: Long term incentive scheme
Long term incentive scheme The Board has approved the implementation of a long term incentive scheme for senior management. This will include a mix of share options and share performance rights which align management and shareholder interests Based on the terms of the scheme, shareholder approval wi
Slide 17: Operational priorities for the FY2016 year
Operational priorities for the FY2016 year •1 Drive top line growth and glass category share, through our product and supply chain strategy ensuring customers’ expectations are exceeded, and that Metro Performance Glass is the company of choice •2 Deliver manufacturing excellence to achieve our desi
Slide 18: Outlook
Outlook Strictly confidential and not for public release
Slide 19: FY16 outlook
FY16 outlook We have significant growth opportunities ahead of us, and as such are continuing to invest in operating capability improvements. These investments include: – Enhancing our glazing capabilities and resources in line with a growing commercial pipeline, – Developing the infrastructure behi
Slide 20: Appendix
Appendix Strictly confidential and not for public release
Slide 21: Reconciliation of GAAP to non-GAAP profit measures
Reconciliation of GAAP to non-GAAP profit measures 1H16 Non-GAAP financial measures $m actual Our results are reported under NZ IFRS. This presentation Net profit after tax (or Profit for the period) 11.0 includes non-GAAP financial measures which are not prepared in Add back: taxation expense 3.4 a
Slide 22: Disclaimer
Disclaimer Please do not read this presentation in isolation This presentation supplements our half year results announcement dated 23 November 2015 and FY16 interim report. It should be read subject to and in conjunction with the additional information in that release, and other material which we h
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