Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2019 Earnings Presentation
19 slides from Metro Performance Glass's earnings presentation, Nov 26, 2018
Slide 1: FY19 Interim Results Presentation
Metro Performance Glass FY19 Interim Results Presentation 26 November 2018 Strictly confidential and not for public release
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: 1H19: Key events
1H19: Key events 1 Group revenue of $140.5m (-1%), EBIT of $15.5m (-18%) and NPAT of $9.1m (-22%), impacted by poor trading results in Australia 2 NZ revenue and EBIT inline with the same period last year, with growing North Island activity offset by further South Island declines. Sustained improv
Slide 4: Executing on Metroglass' refreshed strategy
Executing on Metroglass’ refreshed strategy Our top priority in the half year has been the New Zealand operations, where pleasingly we have achieved sustained incremental improvements in customer experience, operating performance and culture. The Australian business is challenging and taking longer
Slide 5: Early impacts from strategic initiatives
Early impacts from strategic initiatives Customer service metrics trending positively in NZ Diversified channel presence maintained Example plant metrics: Highbrook Daily sales (NZ$000) 800 97% 92% 80% 17% 600 18% 36% 400 74% 80% 200 44% - H1 H2 H1 H2 H1 FY18 Q4 FY19 Q1 FY19 Q2 FY17 FY18 FY19 Late t
Slide 6: Building activity levels remain supportive, but slowdown continues in Canterbury
Building activity levels remain supportive, but slowdown continues in Canterbury Strong economic and demographic fundamentals continue to support strong activity (moderating but still high migration, low interest rates, underbuilt Auckland, KiwiBuild), but supply-side constraints (capacity, costs, c
Slide 7: Changes in Metroglass' competitive landscape
Changes in Metroglass’ competitive landscape The broader industry in which we operate is continuing to evolve, presenting us with both opportunities and risks. Including: – Market penetration of advanced glass products continues to increase – Viridian, our largest glass processing competitor is curr
Slide 8: Window manufacturing – typical residential supply process
Window manufacturing – typical residential supply process Window Manufacturer Prime Die Holder Manufactures aluminium frames Supplies aluminium to Window Manufacturer Window Manufacturer Completed Dwelling Orders supply-only double glazed units from MPG Manufactures and supplies glass within 48-72 h
Slide 9: Operational update – New Zealand
Operational update – New Zealand Focus has been on building organisational capability in order to develop our customers better service – Service levels in the half have been highest achieved in over 2 years – Filled all operational leadership roles and strengthened supervisor levels across sites – R
Slide 10: Operational update – Australia
Operational update – Australia Corporate Steve Hamer appointed Acting CEO in August Victoria Tasmania New South Wales Capital programme has delivered the right Embedded processes and organisational Variable production performance in the equipment to meet market demand capability in new facility with
Slide 11: 1H19: Group revenue
1H19: Group revenue Metroglass Group revenue (NZ$ million)1 1H19 1H18 $140.5m $141.7m $76.7m $75.3m $24.2m $25.2m $27.5m $29.6m $12.2m $11.6m Residential (NZ) Commercial Glazing Retrofit (NZ) Australian Glass Metroglass Group (NZ) Group 2% (4%) +5% (7%) (1%) +1% (NZ) Notes: 1. The allocation of sale
Slide 12: 1H19: First half results summary
1H19: First half results summary Metroglass Group (NZ$m)1 1H19 1H18 % chg Segment results (NZ$m)2 1H19 1H18 % chg Revenue 140.5 141.7 (1) New Zealand Revenue 113.0 112.1 1 EBITDA 22.7 24.7 (8) Segmental EBITDA1 22.3 21.4 4 Depreciation & amortisation 7.2 5.8 24 Segmental EBIT 17.0 16.9 1 EBIT 15.5 1
Slide 13: 1H19: EBIT summary
1H18 EBIT 18.8 Canterbury commercial glazing 1.5 Underlying NZ gross profit % 3.7 EBIT bridge: 1H18 to 1H19 ($m) improvement 1H19: EBIT summary NZ distribution costs 0.6 New Zealand NZ factory labour 0.3 NZ overheads, depreciation & 1.2 other Tasmanian start-up impact 1.7 New South Wales revenue dec
Slide 14: 1H19: Summary cash flow & balance sheet
1H19: Summary cash flow & balance sheet Key cash flow items (NZ$m) 1H19 1H18 Net working capital improved with focussed inventory management in New Zealand partially offset by the build-up of EBIT 15.5 18.8 inventory in Australia for the new Tasmanian plant Operating cash flows 9.4 17.6 Operating ca
Slide 15: Capital management and dividends
Capital management and dividends The board has reviewed the group’s leverage and dividend policy against its current operating performance, its long- term strategy, the uncertain future competitive landscape, and expectations of how the Australasian building cycles could evolve in the coming years F
Slide 16: Outlook for FY19
Outlook for FY19 Future market conditions are always difficult to predict, and industry commentators are currently predicting a broad range of potential market trajectories. Leading indicators point to steady levels of activity in the near term, and we are not expecting any major changes to market d
Slide 17: Q&A session
Q&A session Strictly confidential and not for public release 16
Slide 18: Appendix: Explanation of non-GAAP profit measures
Appendix: Explanation of non-GAAP profit measures Non-GAAP financial information 1H19 1H18 Six months to 30 September Group results are reported under NZ IFRS. This presentation includes non-GAAP ($M) ($M) financial measures which are not prepared in accordance with NZ IFRS, being: Profit for the pe
Slide 19: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki Auckland 2013 New Zealand Ph: + 64 9 927 3000 www.metroglass.co.nz/ John Fraser-Mackenzie – Chief Financial Officer john.fraser-mackenzie@metroglass.co.nz (+64) 027 551 6751 Andrew Paterson – Investor Relations andr
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