Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — Shareholder Meeting (August 2023)
23 slides from Metro Performance Glass's shareholder meeting presentation, Aug 1, 2023
Slide 1: 2023 Annual Shareholders' Meeting
M ET R O P ER FORM ANCE GL A SS 2023 Annual Shareholders’ Meeting 1 August 2023
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: Key messages
Key messages • A challenging FY23 for Metroglass, with an overhang from Covid-19, as supply chains disruption continued to affect operating and inventory efficiency. Focus remained on supporting customers. Legacy debt remains. • Gross margin improved through Q4 FY23 supported by increased pricing an
Slide 6: Capital structure
Capital structure • It is the board’s intention to return to dividends as free cash flow becomes available inline with Metroglass’ capital management framework. • Metroglass remain focused on reducing the Group’s leverage to below 1.5x net debt to EBITDA. On 31 March 2023 this was 3.2x reducing to 2
Slide 7: Chief Executive's address
Chief Executive’s address 7
Slide 8: The Group remains resilient and is focused on its strategic priorities
The Group remains resilient and is focused on its strategic priorities • New Zealand is recovering its gross margin and working capital reductions as supply chain disruptions and rising input costs abate . However, the debt legacy from Covid remains. • Key window manufacturer and commercial segments
Slide 9: Financial highlights
Financial highlights GROUP 1 Revenue NEW ZEALAND 2 $263.5m +12% (FY22: $236.1m) Revenue EBIT $186.7, +5% $6.4m, -14% EBIT NPAT (FY22: $178.0m) (FY22: $7.4m) $11.8m +100% $1.5m nm (FY22: $5.9m) (FY22: $(0.5)m) AUSTRALIA Revenue EBIT Net debt Leverage ratio $76.7m, +32% $6.4m, +$6.7m $60.1m +7.8m 3.3x
Slide 10: Trading update: April to June 2023
Trading update: April to June 20231 Activity remains at softer levels in the first quarter (YTD) with progress made on debt and working capital reductions Key metrics 1 NZ AU Group • YTD Group revenue is similar to the prior year as glass processed volumes in New Zealand business remain at a softer
Slide 11: H1 transition and Metroglass' strong proposition: Code change
H1 transition and Metroglass’ strong proposition: Code change New Zealand climate zones • New building code compliance increase all zones, in three phases: • November 2022: All zones increasing 42% on todays thermal performance to R0.37 • May 2023, split into 3 R value requirements, with the coldest
Slide 12: H1 transition and Metroglass' strong proposition: Product suite
H1 transition and Metroglass’ strong proposition: Product suite Metroglass product suite features At its core, glass performance can be summarised across three performance attributes: Classic • VLT (light transmission) • SHGC (solar heat gain control) Higher • U-value (thermal performance) H1 change
Slide 13: FY23 investments in double glazing processing and Low E glass
FY23 investments in double glazing processing and Low E glass mean we are well positioned for the residential building regulation changes • Furnaces commissioned in Highbrook and Christchurch in late 2022 debottlenecking double-glazing processing • Installed a series of modifications that deliver im
Slide 14: Our customers continue to rate our service positively
Our customers continue to rate our service positively and guide our initiatives to improve New Zealand Australia 8.5 7.9 8.1 7.9 7.9 8.0 8.0 8.1 7.9 8.0 7.6 7.8 7.5 7.7 7.7 7.7 7.3 7.3 1 Survey question: “On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?” 14
Slide 15: The medium-term outlook is uncertain, but Metro has plans in place
The medium-term outlook is uncertain, but Metro has plans in place to respond New Zealand • The 12-month rolling residential consents has continued to decline, and while above estimated industry capacity, uncertainty remains on the number of dwellings ultimately constructed in FY24 and beyond. • Act
Slide 16: General business and shareholder questions
General business and shareholder questions 16
Slide 17: Resolutions
vy Resolutions 17
Slide 18: 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. 18
Slide 19: Resolution 2: Graham Stuart
Resolution 2: Graham Stuart 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 Graham Stuart retires in accordance with this requirement and off
Slide 20: Resolution 3: Mark Eglinton
Resolution 3: Mark Eglinton 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 Mark Eglinton retires in accordance with this requirement and off
Slide 21: Thank you.
vy Thank you. y
Slide 22: 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 Liam Hunt – Investor Relations Liam.hunt@metroglass.co.nz (+64) 022 01
Slide 23: 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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