Slide 1: FY17 Full-Year Result Presentation
Metro Performance Glass FY17 Full‐Year Result Presentation 25 May 2017 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: Agenda
Agenda 1. Market update and results overview – Nigel Rigby, CEO 2. Financial results – John Fraser‐Mackenzie, CFO 3. Market trends – Nigel Rigby 4. Update on growth initiatives – Nigel Rigby 5. Strategy and outlook – Nigel Rigby Strictly confidential and not for public release 2
Slide 4: A longer-term view: transformation of Metro Glass' production
A longer‐term view: transformation of Metro Glass’ production New Zealand's first ever Before the Building Code up‐cycle for double glazing changes in 2007, circa. 90%+ of 35,000 90% NZ Dwelling Consents (Last 12 Months) Metro Glass’ window 80% manufacturing were single 30,000 panes of glass, with d
Slide 5: Macro conditions in New Zealand
Macro conditions in New Zealand Low interest rates, strong net migration, a robust economy and the persistent housing shortage in the upper North Island are continuing to fuel a supportive market backdrop. Activity in Canterbury is expected to continue its decline New Zealand residential new build c
Slide 6: Residential and non-residential backdrops remain supportive
Residential and non‐residential backdrops remain supportive New Zealand – # of residential consents1 Victoria & New South Wales – # of detached dwelling approvals3 • Residential dwelling 65,263 • Detached dwelling 30,626 63,589 27,789 consents for the 12 (house) approvals for months to 31 March the
Slide 7: FY17: Full year result highlights
FY17: Full year result highlights 1 Group revenue rose 30% to $244.3m1 including seven months of trading from Australian Glass Group (AGG)2. Excluding AGG, NZ revenue rose 14% to $213.8m 2 Normalised EBITDA3 rose 20% to $44.9m; Normalised NPAT3 rose 11% to $21.3m 3 Completed the acquisition and i
Slide 8: Financial results
Financial results Strictly confidential and not for public release
Slide 9: FY17: Group revenue
FY17: Group revenue Metro Glass group revenue (NZ$ million)1,2 +14% (NZ) +30% 244.3 +10% +23% +23% 188.0 132.4 145.6 41.6 51.0 17.2 30.5 14.0 ‐ Residential (NZ) Commercial glazing RetroFit (NZ) Australian Glass Group Metro Glass group (NZ) (7 months) FY16 FY17 Residential sales to (1) window manufac
Slide 10: FY17: Full year results summary
FY17: Full year results summary NZ$ million FY17 FY16 % change Revenue 244.3 188.0 29.9 Normalised EBITDA1,2 44.9 37.5 19.6 Depreciation & amortisation 11.0 7.4 48.3 Normalised EBIT1,2 33.9 30.1 12.5 Normalised NPAT2 21.3 19.3 10.8 Abnormal items (2.0) 1.2 nm Reported NPAT 19.4 20.5 (5.5) Basic EPS
Slide 11: FY17: Revenue and EBITDA summary
FY17: Revenue and EBITDA summary Revenue bridge: FY16 to FY17 ($m) Normalised EBITDA bridge: FY16 to FY17 ($m) 244.3 44.9 30.5 4.7 4.2 37.5 4.3 1.7 0.4 188.0 13.0 8.6 2.3 1.4 Core business growth development businesses (1) FY16 Revenue Growth of new distribution AGG revenue FY17 Revenue Core busines
Slide 12: FY17: Summary cash flow & balance sheet
FY17: Summary cash flow & balance sheet Key cash flow items (NZ$m) FY17 FY16 Normalised EBITDA rose +20% to $44.9m in FY17 Normalised EBITDA1,2 44.9 37.5 Operating cash flow conversion adversely impacted by $6.1m due to timing of tax payments, AGG acquisition expenses of Operating cash flows 17.6 27
Slide 13: FY17: final dividend
FY17: final dividend The Board has declared an final dividend of 4.0 cents per share (in line with 2H16), to be paid on 24 July 2017 to all shareholders on the register at 7 July 2017. The dividend is fully imputed for New Zealand resident shareholders. This increases total dividends for the FY17 ye
Slide 14: Update on growth initiatives
Update on growth initiatives Strictly confidential and not for public release
Slide 15: Commercial glazing
Commercial glazing Metro Glass participates in a wide variety of commercial glazing Metro Glass Commercial Forward Book (NZ; $m) projects from internal fitout of retail shops to highly complex facades for office or apartment buildings 29.7 28.8 Commercial glazing revenue +23% to $51.0m, with Aucklan
Slide 16: RetroFit double glazing
RetroFit double glazing RetroFit sales grew by 23% to $17.1m in FY17 (following 39% Metro Glass RetroFit sales (NZ$ million) growth in FY16) 10.0 2H17 sales growth continued in the North Island, but slowed in the South Island 7.6 6.6 7.1 6.0 We maintain our target of growing RetroFit revenue by 30%
Slide 17: Development businesses
Development businesses Operating leverage was impacted this year by investments into our “development businesses”, of which several are yet to contribute meaningfully to group earnings. We believe these investments will provide improved returns over time and help to consolidate Metro Glass’ industry
Slide 18: Australian Glass Group (AGG)
Australian Glass Group (AGG) Acquired on 1 September 2016 for NZ$47.5m. The initial Key Australian acquisition criteria: integration process went smoothly and is now complete 1. Leading player with a scale position Australia presents significant opportunities for Metro Glass 2. Quality glass process
Slide 19: Strategy update and outlook
Strategy update and outlook Strictly confidential and not for public release
Slide 20: Metro Glass' three pillar strategy
Metro Glass’ three pillar strategy supports its market position, with customer intimacy providing strong protection against import‐based competition Business Model Strategy Strictly confidential and not for public release 19
Slide 21: Review of 2017 strategic priorities and achievements
Review of 2017 strategic priorities and achievements • Group revenue +30% to $244.3 million, NZ revenue +14% to $213.8 million vs. FY16 1 Drive top line growth • Continued product range expansion, including digital printing in Auckland • Processed record glass volumes with a higher mix of high‐perfo
Slide 22: Key focus areas for FY18
Key focus areas for FY18 1. Drive top line growth and glass category share, by ensuring that customers continue to see Metro Performance Glass as the glass supplier of choice 2. Focus on improving manufacturing efficiency (including automation, processes and costs) to achieve our desired service and
Slide 23: Outlook for FY18
Outlook for FY18 The market backdrop is expected to remain supportive, although challenges exist within certain markets (Canterbury) We continue to see significant growth opportunities ahead, and as such are continuing to invest in operating capacity and capability improvements across the group New
Slide 24: Q&A / Appendix
Q&A / Appendix Strictly confidential and not for public release
Slide 25: 2H17: Summary financial performance
2H17: Summary financial performance Key P&L items (NZ$ million) 2H17 2H16 % change 2H17 financial results include the contribution of Australian Revenue 128.0 93.2 37.4 Glass Group from 1 September Normalised EBITDA1,2 20.8 18.4 13.2 2016. Depreciation & amortisation 6.1 4.2 47.0 Normalised EBIT1,2
Slide 26: Market conditions: regional trends in New Zealand
Market conditions: regional trends in New Zealand Residential building consent issuance grew 10% year on year to ~30,600 for the twelve months to March, with 71% of those consents in the North Island (Auckland +7%, Waikato +11%, Bay of Plenty +22%, Wellington +29%) While activity in Canterbury conti
Slide 27: Market conditions: Increasing scale of Auckland's housing shortage
Market conditions: Increasing scale of Auckland’s housing shortage Estimated shortage of houses built in Auckland 1.7 45,000 Auckland Population (million) Shortage of Dwellings 40,000 1.6 35,000 1.5 30,000 1.4 25,000 20,000 1.3 15,000 1.2 10,000 5,000 1.1 ‐ 1.0 (5,000) 2001 2002 2003 2004 2005 2006
Slide 28: Market conditions: Australia
Market conditions: Australia Australian Glass Group primarily targets the detached dwellings (houses) and alterations & additions (A&A) markets in Victoria and New South Wales with limited direct exposure to the more volatile multi dwelling units market In the 12 months ended 31 March 2017, the hous
Slide 29: Explanation of non-GAAP profit measures
Explanation of non‐GAAP profit measures Non‐GAAP financial measures Group results are reported under NZ IFRS. This presentation includes Full Year to 31 March; $M FY17 FY16 non‐GAAP financial measures which are not prepared in accordance Normalised net profit after tax 21.3 19.3 with NZ IFRS, being:
Slide 30: Contact information
Contact information Metro Performance Glass Limited Nigel Rigby – Chief Executive Officer nigel.rigby@metroglass.co.nz 5 Lady Fisher Place, East Tamaki (+64) 027 703 4184 Auckland 2013 New Zealand John Fraser‐Mackenzie – Chief Financial Officer Ph: + 64 9 927 3000 john.fraser‐mackenzie@metroglass.co