Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — Shareholder Meeting (August 2022)
28 slides from Metro Performance Glass's shareholder meeting presentation, Aug 9, 2022
Slide 1: 2022 Annual Shareholders' Meeting
M ET R O P ER FORM ANCE GL A SS 2022 Annual Shareholders’ Meeting 9 August 2022
Slide 2: Metro Performance Glass Board of Directors
Metro Performance Glass Board of Directors Jenn Bestwick Mark Eglinton Peter Griffiths Independent Non-Executive Director, Member of the Independent Non-Executive Director, Chair of the Independent Non-Executive Chair, Member of the Audit and Risk Committee People and Culture Committee People and Cu
Slide 3: Today's agenda
Today’s agenda 1. Welcome and introductions 2. Chair’s address 3. Chief Executive’s address 4. General business and shareholder questions 5. Formal business and resolutions 3
Slide 4: Chair's address
Chair's address 7 )™
Slide 5: Our strategy
Our strategy hat I 0u/ OUR VISION OUR PURPOSE FOR CUSTOMERS. To be the leader Making lives By providing the best service in glass solutions brighter every day ror oun ene By providing a great place to work The Metro Way SAFETY PRODUCT & OUR OUR OWNING PROCESS QUALITY CUSTOMER PEOPLE OUR WORK Working
Slide 6: Key messages
Key messages • The Group managed frequent and evolving Covid-19 disruptions and other external pressures well, limiting supply volatility to customers • Strategic actions and investments in double glazing processing and high-performance glass mean we are well positioned for the upcoming changes in r
Slide 7: Metroglass' framework guides our approach to capital allocation
Metroglass’ framework guides our approach to capital allocation New Zealand AGG Net operating cash flow Net operating cash flow • Net operating cash flows impacted by rapid increases in material costs that are partially offset by a series of price increases, and a lower NZ Net operating cash flow Go
Slide 8: Chief Executive's address
Chief Executive’s address 8
Slide 9: The Group made progress despite ongoing external pressures
The Group made progress despite ongoing external pressures OUR BUSINESS • Managed service to our customers well with strong and clear communication, sufficient stock levels and operational stability • AGG’s transformation into a specialist double-glazing business continued in FY22, with a modest imp
Slide 10: Metroglass extends its reach into glass recycling with 5R Solutions Limited investment
Metroglass extends its reach into glass recycling with 5R Solutions Limited (5R) investment • Metroglass is in the process of converting its loan to 5R solutions Limited to a 50% equity position • Equity accounted results will be reflected in the Group’s financial statements for future reporting per
Slide 11: Significant achievements in FY22
Significant achievements in FY22 Window and Glass Association awards: Won the Designing with Glass – Residential for Ferg’s house, Sandy Bay featuring Metroglass toughened single glazed glass installed by the Metro Direct Whangarei Finalists: • Design Awards – commercial Dunedin Mall glass floor ove
Slide 12: FY22 Financial snapshot
FY22 Financial snapshot GROUP Revenue NEW ZEALAND 2 $236.1m +2% (FY21: $232.3m) Revenue EBIT $178.0, -1% $7.4m, -61% EBIT NLAT (FY21: $179.8m) (FY21: $18.7m) $5.9m -66% $(0.5)m -$7.6m (FY21: $17.2m) (FY21: $7.2m) AUSTRALIA Revenue EBIT Net debt Leverage ratio $58.1m, +11% $(0.3)m, +57% $52.3m +4.3m
Slide 13: Our customers continue to rate our service positively and guide our initiatives to improve
Our customers continue to rate our service positively and guide our initiatives to improve New Zealand Australia 8.1 8.0 8.0 8.1 7.9 7.9 7.8 7.9 7.7 7.7 7.7 7.3 7.6 7.3 June 2019 November June 2020 December May 2021 December May 2022 June 2019 November June 2020 December May 2021 December May 2022 2
Slide 14: Changes to building insulation requirements support usage of Low E glass
Changes to building insulation requirements support usage of Low E glass in New Zealand, and penetration of double glazing in Australia New Zealand Australia H1 insulation changes increase the use of high- National Construction Code changes increase the use performing low-E glass in windows of doubl
Slide 15: Thermal performance changes are the first major change since the introduction of Double Glazing
Thermal performance changes are the first major change since the introduction of Double Glazing in 2007/08 • Current building code compliance for windows is achieved with R0.26 thermal performance, applied to all zones • New building code compliance increase all zones, in three phases: • November 20
Slide 16: Activity in our markets
Activity in our markets New Zealand residential construction remains Australian residential market is solid, as strong steady, as capacity constraints widen the gap approvals translate into activity. However, supply between consents and actual activity constraints temper completion rates Residential
Slide 17: Rapid increases to input costs has created acute pressure, with successful market pricing
Rapid increases to input costs has created acute pressure, with successful market pricing supporting a path to gross profit recovery • In the prior 12 months, the weighted average cost per sqm of glass increased significantly, and rapidly • Consist with other industries inflationary cost pressure ha
Slide 18: Trading update: April to July 2022
Trading update: April to July 20221 Softer activity levels in the first quarter (YTD), driven by industry supply chain disruptions and labour availability that moderated execution • YTD Group revenue similar to prior year; the volumes in New Zealand business were softer and the Australian business a
Slide 19: Metroglass is positioning for a challenging market
Metroglass is positioning for a challenging market • New Zealand residential building consents are at record levels in the last 12 months. Capacity constraints in the industry mean that we expect building activity continue, but the rate of execution due to wider industry issues likely to be a drag •
Slide 20: We remain focussed on our strategy and near-term goals
We remain focussed on our strategy and near-term goals Building resilience and Grow profitability in Ensure our balance defending Metroglass’ Australia, benefiting from sheet is robust to cope leadership position in increasing demand for with future risks and New Zealand double-glazing opportunities
Slide 21: General business and shareholder questions
General business and shareholder questions 21
Slide 22: Resolutions
vy Resolutions 22
Slide 23: Resolution 1: Auditor remuneration
Resolution 1: Auditor remuneration To consider and, if thought fit, pass the following ordinary resolution: That the Board be authorised to fix the fees and expenses of PwC as Auditor for the ensuing year. 23
Slide 24: Resolution 2: Jenn Bestwick
Resolution 2: Jenn Bestwick Metro Performance Glass constitution and NZX Listing Rule 2.7.1 require that any director appointed by the board must retire from office at the next annual meeting but is eligible to seek election. Director Jenn Bestwick retires in accordance with this requirement and off
Slide 25: Resolution 3: Julia Mayne
Resolution 3: Julia Mayne Metro Performance Glass constitution and NZX Listing Rule 2.7.1 require that any director appointed by the board must retire from office at the next annual meeting but is eligible to seek election. Director Julia Mayne retires in accordance with this requirement and offers
Slide 26: Opportunity for questions
T h a nk yo u Opportunity for questions 26
Slide 27: 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.
Slide 28: 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
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