Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2018 Earnings Presentation
21 slides from Metro Performance Glass's earnings presentation, Nov 20, 2017
Slide 1: FY18 Interim Results Presentation
Metro Performance Glass FY18 Interim Results Presentation 20 November 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. First half highlights and market conditions 2. Financial results 3. Update on Australian Glass Group 4. Outlook 5. Strategic Review and governance changes Strictly confidential and not for public release 2
Slide 4: First half highlights & market conditions
First half highlights & market conditions Strictly confidential and not for public release 3
Slide 5: 1H18: Summary of first half results
1H18: Summary of first half results 1 Softer than anticipated construction activity in NZ resulted in NZ EBITDA declining 13% to $21.0 million. NZ revenue increased 0.4% to $112.1m, daily sales +2.75% 2 Strong revenue growth in Australia driven by double glazing sales in Victoria 3 Group revenue
Slide 6: Review of FY18 strategic priorities and achievements: half-year snapshot
Review of FY18 strategic priorities and achievements: half‐year snapshot • Group revenue +22% to $141.7 million, NZ revenue +0.4% at $112.1 million vs. 1H17, daily Drive top line growth and sales +2.75% vs 1H17 1 glass category market share • Maintained leadership position and NZ glass category shar
Slide 7: Macro conditions in New Zealand
Macro conditions in New Zealand While strong economic and demographic Metro Glass has maintained New Zealand glass category fundamentals (migration, KiwiBuild, underbuilt share4 of grater than 55% Auckland) are expected to support strong demand over the medium‐term, supply‐side constraints and 61% b
Slide 8: Residential and non-residential activity remains supportive but was softer than anticipated in New Zealand
Residential and non‐residential activity remains supportive but was softer than anticipated in New Zealand New Zealand – # of residential consents1 Victoria & New South Wales – # of detached dwelling approvals3 • Residential dwelling 65,989 64,860 • Double glazing 29,999 30,892 consents for the 12 p
Slide 9: Financial results
Financial results Strictly confidential and not for public release
Slide 10: 1H18: Group revenue
1H18: Group revenue Metro Glass Group revenue (NZ$ million)1,2 • 1H18 had 3 less days sales (‐2.4%) than 1H17, principally on account of the timing of Easter +0% (NZ) +22% 141.7 +14% 116.3 +1% (6%) 75.3 74.7 25.2 26.8 29.6 11.6 10.2 4.6 Residential (NZ) Commercial glazing RetroFit (NZ) Australian Gl
Slide 11: 1H18: First half results summary
1H18: First half results summary NZ$ million 1H18 1H17 % change Revenue 141.7 116.3 21.9 Normalised EBITDA1,2 24.7 24.0 2.7 Depreciation & amortisation 5.8 4.8 20.9 Normalised EBIT1,2 18.8 19.2 (1.9) Normalised NPAT2 11.8 12.5 (6.1) Abnormal items ‐ (1.0) nm Reported NPAT 11.8 11.5 1.9 Basic EPS (ce
Slide 12: 1H18: EBITDA summary
1H17 Normalised EBITDA South Island pricing 24.0 1.0 1H18: EBITDA summary NZ factory labour 1.4 Normalised EBITDA bridge: 1H17 to 1H18 ($m) NZ electricity costs 0.4 NZ Advertising 0.4 NZ profit improvement 0.7 Strictly confidential and not for public release AGG EBITDA 3.1 (5 months) 1H18 Normalised
Slide 13: 1H18: Summary cash flow & balance sheet
1H18: Summary cash flow & balance sheet Key cash flow items (NZ$m) 1H18 1H17 Normalised EBITDA rose +3% to $24.7m in 1H18 Normalised EBITDA1,2 24.7 24.0 Operating cash flow improved by $12.6 million versus 1H17, with an the increased contribution from AGG, improved Operating cash flows 17.6 5.0 mana
Slide 14: Update on Australian Glass Group
Update on Australian Glass Group Strictly confidential and not for public release
Slide 15: Australian Glass Group (AGG) update
Australian Glass Group (AGG) update South East Australia presents a significant opportunity as double glazing penetration gathers momentum. Metro Glass provides AGG with experience in production efficiency & throughput, procurement, interfacing with customers and product development – There are oppo
Slide 16: Outlook
Outlook Strictly confidential and not for public release
Slide 17: Outlook for FY18
Outlook for FY18 Whilst market activity is difficult to predict, forecasters are typically estimating that residential dwelling consents in New Zealand will continue in a range of 28,500 to 35,000 per annum in the next 2‐3 years Metro Glass is adjusting its New Zealand business to reflect softer mar
Slide 18: Strategic Review & Governance Changes
Strategic Review & Governance Changes Strictly confidential and not for public release
Slide 19: Strategic Review & Governance Changes
Strategic Review & Governance Changes As a consequence of significant variations in the timing of both residential and commercial work put in place in New Zealand between Metro Glass’ assumptions and the actual market, the Metro Glass Board announced that it had initiated a Strategic Review in Octob
Slide 20: 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
Slide 21: Appendix: Explanation of non-GAAP profit measures
Appendix: Explanation of non‐GAAP profit measures Non‐GAAP financial measures Group results are reported under NZ IFRS. This presentation includes non‐GAAP Six Months to 30 September; $M 1H18 1H17 financial measures which are not prepared in accordance with NZ IFRS, being: Normalised net profit afte
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