Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — Shareholder Meeting (August 2016)
22 slides from Metro Performance Glass's shareholder meeting presentation, Aug 24, 2016
Slide 1: Metro Performance Glass Annual Shareholders' Meeting
Metro Performance Glass Annual Shareholders’ Meeting, 24 August 2016 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: Today's agenda
Today’s agenda 1 Chairman’s address 2 CEO’s address 3 Ordinary business and resolutions 4 Voting 5 General business Strictly confidential and not for public release 2
Slide 4: Chairman's address
Chairman’s address Strictly confidential and not for public release
Slide 5: Review of key achievements in FY2016
Review of key achievements in FY2016 Sales Forward Book of Commercial Projects $188.0m $27.0m + 10.0%1 + 70.0% Production volume Retrofit double glazing revenue Record processing volumes in $14.1m all four plants + 39.1% Total Dividend Per Share (Fully Imputed) Continued investment in product leader
Slide 6: Financial outlook
Financial outlook Metro Glass has started the financial year well, and continues to benefit from the strong construction market in New Zealand We expect the current year to provide a marked improvement on our previous year’s result o Year to date, Retrofit has continued to grow at similar strong lev
Slide 7: Chief Executive Officer's address
Chief Executive Officer’s address Strictly confidential and not for public release
Slide 8: Benefiting from a strong market, backed by record net migration and low interest rates
Benefiting from a strong market, backed by record net migration, low interest rates and sustained positive momentum in building activity Metro Glass’ revenue remains aligned to 9 month lagged residential housing consents. In FY16 our revenue grew c. +10%3, outpacing the +8% growth suggested by lagge
Slide 9: Residential construction growth is heading north, while commercial work is strong
Residential construction growth is heading north, while commercial work is strong through out the country Residential building consent issuance grew 11% year on year, with consents in FY16 reaching ~27,800, led by Auckland +20% and surrounding regions (Waikato +34%, Bay of Plenty +45%) The Canterbur
Slide 10: Review of operating performance in FY2016
Review of operating performance in FY2016 +79% increase in sales of high performance LowE glass Production volume Customer service levels were variable and below our high Record processing volumes in in-house standards all four plants The new Auckland factory is running to expectations Continuing to
Slide 11: Commercial offering continues to expand and forward work pipeline grew
Metro Glass’ commercial offering continues to expand and our pipeline of forward work grew +71% to $27.0m over the financial year Mansons Building, Auckland Vinegar Lane, Auckland Mitre 10 Head Office, Auckland Otahuhu Glass canopy, Recreation Otara and Youth Centre Strictly confidential and not for
Slide 12: FY2016 financial highlights
FY2016 financial highlights Key P&L items ($000) FY16 FY151,2 Key balance sheet items ($000) FY16 FY15 (12 months) (8 months) Working capital4 21,970 19,264 Revenue 188,037 114,998 Cost of sales 90,724 57,205 Property plant & equipment 47,997 43,496 Gross profit 97,313 57,793 Total assets 230,910 21
Slide 13: Australian expansion: Increasing adoption of double glazing in Australia
Australian expansion: Increasing adoption of double glazing in Australia presents Metro Glass with a significant opportunity Double glazing penetration is gathering significant momentum in cooler climates like Victoria and Tasmania, which we currently estimate to account for c. 30-50% of windows in
Slide 14: Australian Glass Group is a strong fit with Metro Glass
Australian Glass Group is a strong fit with Metro Glass, providing the ability to leverage key competencies across both markets Metro Business comparison AGG Glass Victoria New South Wales Glass processing • High quality, high margin • Diversified product focus Double glazed units business with
Slide 15: Victoria & New South Wales offer sizeable markets with stable growth outlook
Victoria & New South Wales offer sizeable markets with a relatively stable medium term growth outlook in new detached dwelling construction Victoria Residential Approvals New South Wales Residential Approvals New Detached Housing New Multi Dwelling Units New Detached Housing New Multi Dwelling Units
Slide 16: Priorities for the FY2017 year
Priorities for the FY2017 year •1 Drive top line growth, through our product, supply chain and logistics strategy ensuring customers’ expectations are exceeded •2 Deliver manufacturing excellence to achieve our desired service and cost leadership position •3 Capture an increasing share of the growin
Slide 17: Formal business
Formal business Strictly confidential and not for public release
Slide 18: Ordinary business and resolutions
Ordinary business and resolutions To consider and, if thought fit, pass the following ordinary resolution: Resolution 1: That the Board be authorised to fix the fees and expenses of PwC as Auditor for the ensuing year Votes received in advance of today’s meeting: For Open Against Total votes % of is
Slide 19: Ordinary business and resolutions: Russell Chenu
Ordinary business and resolutions Russell Chenu To consider and, if thought fit, pass the following Independent, Non-Executive Director ordinary resolution: Chairman of Audit & Risk Committee Russell has significant experience in the Resolution 2: That Russell Chenu, who corporate sector with more t
Slide 20: Ordinary business and resolutions: Gordon Buswell
Ordinary business and resolutions Gordon Buswell To consider and, if thought fit, pass the following Independent, Non-Executive ordinary resolution: Director Gordon has more than 25 years’ Resolution 3: That Gordon Buswell experience in the building and (appointed by the Board as a Director on 6 con
Slide 21: Shareholder questions
Shareholder questions Strictly confidential and not for public release
Slide 22: Appendix: Explanation of non-GAAP profit measures
Appendix: Explanation of non-GAAP profit measures Non-GAAP financial measures Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS The non-GAAP financial measures used in this presentation include: – EBITDA:
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