Slide 1: FY19 Annual Results Presentation
Metro Performance Glass FY19 Annual Results Presentation 23 May 2019 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: Summary of the year
Summary of the year Summary of the year Metroglass’ position in New Zealand • EBIT in line with March guidance, stronger debt reduction • Metroglass is a clear market leader and is well placed to succeed having invested • Improved financial results in New Zealand (80% of group revenue) ahead of its
Slide 4: Our strategy at a glance: Our goals
Our strategy at a glance Our goals Deliver market leading customer service Develop our organizational capabilities Uphold our scale strength through product & channel leadership Leverage that scale to deliver solutions efficiently Strictly confidential and not for public release 3
Slide 5: Executing on Metroglass' strategic objectives (1/2)
Executing on Metroglass’ strategic objectives (1/2) The New Zealand operations have achieved sustained incremental improvements in customer experience, operating performance and culture. The Australian business has taken longer to reset its operations, however the business stabilised in the second h
Slide 6: Executing on Metroglass' strategic objectives (2/2)
Executing on Metroglass’ strategic objectives (2/2) 3. Uphold our scale • Metroglass’ NZ revenue and margins grew, but market share of glass imports declined on new competitor capacity, lower inventory by strength through $1.6m and mix focus product & channel • Commercial glazing revenue grew by 8.9
Slide 7: FY19: Key financial outcomes
FY19: Key financial outcomes Group revenue of $267.8m in line with pcp, EBIT* of $25.2m (-18%) 1 and NPAT* of $14.2m (-23%), impacted by poor trading results in Australia NZ revenue of $217.4m (+2%) and EBIT of $31.1m (+6%), with 2 growing North Island activity offset by further South Island decline
Slide 8: Building activity levels remain at historically high levels
Building activity levels remain at historically high levels, with positive leading indicators in NZ and negative indicators in Australia Strong economic and demographic fundamentals continue to support strong activity (moderating but still high migration, low interest rates, underbuilt Auckland, Kiw
Slide 9: Operational update – New Zealand
Operational update – New Zealand Conducted extensive customer survey, re-prioritised internal initiatives to align with customer requirements Focus has been on building organisational capability in order to improve our service to customers – Service metrics have been highest achieved in over 2 years
Slide 10: Changes in Metroglass' competitive landscape
Changes in Metroglass’ competitive landscape • The New Zealand market is rapidly evolving, with the buoyant housing and construction markets encouraging investment from new and existing players • As at today, there continues to be little reliable information available about new entrant’s specific pl
Slide 11: Operational update – Australia
Operational update – Australia Tasmania Embedded processes and organisational capability in new facility with full glass processing capability, (including LowE glass) Transition of service from Victoria to the new plant saw service levels fall and a (temporary) loss of market share The plant is now
Slide 12: Operational update – Australia
Operational update – Australia Victoria % external reworks Capital programme has delivered the right equipment to meet market 4% demand Variable production performance in the period. Excess capacity following 3% commissioning of Tasmania plant also led to diseconomies of scale 2% Organisation and cu
Slide 13: FY19: Group revenue
FY19: Group revenue Metroglass Group revenue (NZ$m)1 +2% NZ 0% +9% +2% -9% 0% $268.3 $267.8 $143.2 $143.1 $48.2 $52.5 $55.4 $50.4 $21.5 $21.8 Residential (NZ) Commercial Glazing Retrofit (NZ) Australian Glass Group FY18 FY19 (NZ) Notes: 1. The allocation of sales between residential and commercial a
Slide 14: FY19: Full year results summary
FY19: Full year results summary NZ$m FY19 FY18 % change Segment results (NZ$m) FY19 FY18 % chg Revenue 267.8 268.3 0% New Zealand Revenue 217.4 212.9 2% EBITDA before significant items1,2 39.7 43.3 -8% Segmental EBIT1 31.1 29.2 6% Depreciation & amortisation 14.5 12.4 17% GM% 50.7% 49.5% EBIT before
Slide 15: FY19: EBIT summary
FY18 EBIT 30.9 Underlying NZ gross profit % 4.8 improvement NZ distribution costs 1.0 EBIT bridge: FY18 to FY19 ($m) NZ factory management 0.5 FY19: EBIT summary New Zealand NZ short term incentives 0.9 NZ overheads, depreciation 0.5 & other TAS EBIT 0.4 (1st year of operation) VIC EBIT lost on tran
Slide 16: FY19: Summary cash flow & balance sheet
FY19: Summary cash flow & balance sheet Key cash flow items (NZ$m) FY19 FY18 The New Zealand operations continued with its progress reducing working capital by $3.1m for the second successive EBIT 25.2 30.9 year on the back of reduced inventory levels. Operating cash flows 23.6 33.6 Net operating ca
Slide 17: FY19: Net debt and capital expenditure
FY19: Net debt and capital expenditure Net debt (NZ$m) and Gearing (%) 140 37.0% 125.0 40. 0% Net debt reduced by $11m to $83.3m 37.6% 35. 0% 34.7% 120 100 94.5 94.3 30. 0% Capital expenditure reduced 62% to $7.8m 24.9% 83.3 Axis Title Capex has been funded by debt and operating cash flow 25. 0% 22.
Slide 18: FY19: Cash flows
FY19: Cash flows Strong net cash from operations - New Zealand cash flow performance offset by AGG Final FY18 dividend of $7m paid during the year Foreign Exchange and other Net cash from operations Investing activities FY18 net debt FY19 net debt Interest paid Dividends Tax paid 37.9 (5.3) 2.2 (9.0
Slide 19: Outlook for FY20
Outlook for FY20 The market In New Zealand, building activity to remains at consistent strong levels Anticipate that housing starts in detached and A&A will remain near current levels A trading update, including preliminary financial guidance for the 2020 financial year, will be provided at our Annu
Slide 20: Q&A session
Q&A session Strictly confidential and not for public release
Slide 21: Appendix: Explanation of non-GAAP profit measures
Appendix: Explanation of non-GAAP profit measures FY19 FY18 Non-GAAP financial information Full year to 31 March ($M) ($M) Group results are reported under NZ IFRS. This presentation includes non-GAAP Profit for the period before significant items 14.2 18.4 financial measures which are not prepared
Slide 22: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki Auckland 2013 New Zealand Ph: + 64 9 927 3000 www.metroglass.co.nz/ Simon Mander – Chief Executive Officer Simon.Mander@metroglass.co.nz (+64) 029 636 2661 John Fraser-Mackenzie – Chief Financial Officer john.fraser