Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2020 Earnings Presentation
20 slides from Metro Performance Glass's earnings presentation, Nov 25, 2019
Slide 1: FY20 Interim Results Presentation
Metro Performance Glass FY20 Interim Results Presentation 25 November 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 first half FY20
Summary of the first half FY20 In New Zealand we continued to improve our customer experience and differentiate our offering, in an increasingly competitive and variable market. Australian Glass Group grew revenue in the key double‐ glazing segment and continued to deliver improved operational perfo
Slide 4: 1H20: Key financial outcomes
1H20: Key financial outcomes Group revenue of $136.7m declined 3% vs. 1H19, EBIT* of $14.5m (‐6%) 1 and NPAT* of $7.7m (‐15%) in challenging markets, supported by stable New Zealand performance and Australian double glazing growth NZ revenue of $109.6m (‐3%) and EBIT* of $17.2 (+2%), with broad soft
Slide 5: Our strategy at a glance: Our goals
Our strategy at a glance Our goals Deliver the best customer service in our market Develop our organisational capabilities Uphold our scale strength through leading products & distribution Leverage that scale to deliver best product value Strictly confidential and not for public release 4
Slide 6: Executing on our strategy
Executing on our strategy Deliver market leading Develop our organisational Uphold scale strength Leverage our scale to deliver customer service capabilities through product & channel solutions efficiently leadership • Positive feedback received in recent • Embedding a culture of safety and • AGG gr
Slide 7: Residential construction in NZ remains at elevated levels, with mix weighted to multi-dwellings
Residential construction in NZ remains at elevated levels, with the mix of consents increasingly weighted towards multi‐dwellings NZ detached housing (9 month lagged) and multi‐residential (12 month lagged) consents (by number)1 25,000 On a lagged basis, for the 12 months to 30 September 2019: 20,00
Slide 8: New Zealand is focused on delivering better quality and stable service levels
New Zealand is focused on delivering better quality and stable service levels as competitive activity intensifies across the country • Delivering a consistent experience for our customers is critical for their success and enables stronger relationships ‐ Customer service levels continue to trend pos
Slide 9: Residential construction activity in south east Australia is flat but expected to soften
Residential construction activity in south east Australia is flat but expected to soften South east Australia house approvals (6mth lagged, by number)1 South east Australia alterations & additions (by value A$bn)2 +3.6% +0.6% +5.5% ‐2.6% 68,847 71,357 71,753 5.5 5.8 5.7 29,670 29,586 29,174 2.6 2.8
Slide 10: AGG has turned around its operating performance and begun increasing share
AGG has turned around its operating performance and has begun increasing share in key doubling glazing segments • Australian revenue in AUD increased 1%, including 3% growth in our key doubling glazing segment • Improved operational performance across all states, with DIFOT +10% and external reworks
Slide 11: Update on New South Wales
Update on New South Wales • AGG’s Victorian and Tasmanian operations are profitable, and the New South Wales business has significantly improved its operational performance and customer service. In the last 6 months double glazing sales in NSW grew by 19%, however this was offset by declines in marg
Slide 12: 1H20: Metroglass Group revenue (NZ$m)
1H20: Metroglass Group revenue (NZ$m) (3%) NZ (2%) (6%) (3%) (1%) (3%) $136.7m $140.5m $74.9m $76.7m $22.8m $24.2m $27.1m $27.5m $11.8m $12.2m Residential (NZ) Commercial Glazing Retrofit (NZ) Australian Glass Metro Glass Group (NZ) Group (AU) 1H20 1H19 Note: The allocation of sales between resident
Slide 13: 1H20: Financial results summary
1H20: Financial results summary Under Pre Under Pre IFRS 16 IFRS 16 Segment results IFRS 16 IFRS 16 NZ$ million1 % change (NZ$m)3 % change 1H20 1H19 1H20 1H20 1H19 1H20 Revenue 136.7 140.5 ‐3% 136.7 New Zealand Revenue 109.6 113.0 ‐3% 109.6 EBITDA2 25.5 22.7 12% 20.6 Gross profit % 52.8% 51.0% 52.1%
Slide 14: EBIT bridge: 1H19 to 1H20
1H19 EBIT 15.5 Lower revenue 1.7 (largely UNI residential) * Increments shown in Australian dollars. NZ gross profit % improvement 2.0 New Zealand Costs: Other 1.0 AGG revenue 0.1 EBIT bridge: 1H19 to 1H20 ($m) AGG gross profit % decline 1.2 Australia* Costs: Other 0.2 Translation impact 0.1 (AUD to
Slide 15: 1H20: Group summary cash flow & balance sheet
1H20: Group summary cash flow & balance sheet Key cash flow items Pre NZ IFRS 16 • The group achieved reductions in working capital for the second 1H20 1H19 (NZ$m) 1H20 successive year through close management of trade debtors and EBITDA 25.5 22.7 20.6 inventory Operating cash flows 18.9 9.4 15.7 •
Slide 16: 1H20: Net debt and cash flows
Net debt (30 Sept 18) 95.2 Net debt (31 Mar 19) 83.3 Net operating cashflows 27.1 Interest paid 3.7 1H20: Net debt and cash flows Tax paid 4.4 Capital expenditure 4.3 3.2 Lease payments Foreign exchange & other Strictly confidential and not for public release 1.5 Net debt (30 Sept 19) 73.4 Total Ban
Slide 17: FY20 outlook
FY20 outlook The market • In NZ, building consents to remain at elevated levels, weighted increasingly towards multi‐residential dwellings. While leading indicators suggest no significant change to this in the near team, we expect further softness in certain regional markets, including Auckland • In
Slide 18: Q&A session
Q&A session Strictly confidential and not for public release
Slide 19: Appendix: Explanation of non-GAAP profit measures
Appendix: Explanation of non‐GAAP profit measures Non‐GAAP financial information 1H20 1H19 Six months to 30 September • Group results are reported under NZ IFRS. This presentation includes non‐ ($M) ($M) GAAP financial measures which are not prepared in accordance with NZ IFRS, being: Profit for the
Slide 20: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki Auckland 2013, New Zealand Ph: (+64) 09 927 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.fra
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