Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — H1 2021 Earnings Presentation
19 slides from Metro Performance Glass's earnings presentation, Nov 23, 2020
Slide 1: 1H21 Interim Results Presentation
M ET RO P E R FORM ANCE GL AS S 1H21 Interim Results Presentation 23 November 2020
Slide 2: Key messages
Key messages • The Metroglass Group displayed resilience through the first 6-months of FY21, supported by the strength and dedication of its people • Metroglass had a solid first half in New Zealand, although the COVID- 19 shutdown impacts overshadowed underlying performance • The Australian turnaro
Slide 3: The Metroglass Group displayed its resilience in a challenging six-months
The Metroglass Group displayed its resilience in a challenging six-months OUR PEOPLE OUR CUSTOMERS OUR BUSINESS • Maintained normal pay for all staff during NZ • Maintained regular contact and provided • Business continuity plans activated with alert level 4 support throughout the NZ lockdown safe a
Slide 4: 1H21 key financial outcomes
1H21 key financial outcomes1 GROUP Revenue NEW ZEALAND 2 $117.0m -14% (1H20: $136.7m) Revenue EBIT $89.2m, -19% $12.8m, -26% EBIT NPAT (1H20: $109.6m) (1H20: $17.2m) $12.8m -12% $7.6m -2% (1H20: $14.5m) (1H20: $7.7m) AUSTRALIA Revenue EBIT Net bank debt3 Leverage ratio $27.8m, +3% $0.4m, +$2.7m $47.
Slide 5: Residential consents have remained strong in NZ, though activity levels declined as a result of COVID-19
Residential consents have remained strong in NZ, though activity levels declined as a result of the COVID-19 alert level 4 lockdown Total NZ residential consents (9 month lagged, by number) NZ non-residential consents (by value $bn)2 +8.1% 0.0% -7.6% +0.4% +5.5% +12.7% 34,804 37,627 37,614 7.6 32,86
Slide 6: Strong first half performance in New Zealand with the COVID-19 shutdown impacts overshadowing underlying performance
Strong first half performance in New Zealand with the COVID-19 shutdown impacts overshadowing underlying performance • We responded well to numerous covid-19 driven issues including significant levels of demand uncertainty and volatility, supply chain disruptions, operating restrictions, and increas
Slide 7: Residential construction activity in south east Australia has softened, offset by increasing demand for double-glazing
Residential construction activity in south east Australia has softened, offset by increasing demand for double-glazing South east Australia: house approvals (6m lagged, by number)1 South east Australia: housing data (rolling 12 months)2 +0.8% -12.2% 20% 71,371 71,974 63,195 10% 0% 1% 29,598 29,363 2
Slide 8: The Australian turnaround progressed well with good operational performance and an EBIT positive result
The Australian turnaround progressed well with good operational performance and an EBIT positive result • Australian Glass Group (AGG) continued to operate through the first half without significant disruption and successfully managed the increasing COVID-19 related restrictions and safety requireme
Slide 9: 1H21: Metroglass Group revenue (NZ$)
1H21: Metroglass Group revenue (NZ$) 1H21 1H20 $136.7m $117.0m $74.9m $59.1m $27.8m $27.1m $22.8m $18.0m $12.1m $11.8m Residential (NZ) Commercial Glazing Retrofit (NZ) Australian Glass Metro Glass Group (NZ) Group (AU) (21%) (21%) 2% 3% (14%) (19%) Note: The allocation of sales between residential
Slide 10: 1H21: Financial results summary
1H21: Financial results summary Group results Segment results 1H21 1H20 % change 1H21 1H20 % change NZ$m1 NZ$m,1,3 Group New Zealand Revenue 117.0 136.7 (14)% Revenue 89.2 109.6 (19)% EBITDA before significant items 23.1 25.5 (9)% Gross profit % 48.7% 52.9% Depreciation & amortisation 10.3 11.0 (6)%
Slide 11: 1H21: EBIT bridge
11 1H20 EBIT Change in April NZ EBIT - COVID-19 14.5 8.8 Alert Level 4 lockdown NZ Govt wage subsidy - COVID-19 6.1 1H21: EBIT bridge NZ revenue - mainly due to 2.9 post-shutdown ramp up in May New Zealand NZ gross profit % - mainly due to 2.2 post-shutdown ramp up in May Distribution & glazing 2.0
Slide 12: 1H21: Group summary cash flow & balance sheet
1H21: Group summary cash flow & balance sheet Key cash flow items (NZ$m) 1H21 1H20 • Achieved further reductions in working capital through close management of trade debtors and inventory EBIT (post significant items) 13.7 14.5 Operating cash flows 19.6 18.9 • Safety levels for glass inventory will
Slide 13: Strong operating cashflows, focused capital expenditure and prudent cost management has supported ongoing net debt reduction
Strong operating cashflows, focused capital expenditure and prudent cost management has supported ongoing net debt reduction Group net debt (NZ$m) 51.0 1 94.3 3.3 83.3 73.4 66.9 47.7 Mar-18 Mar-19 Sep-19 Mar-20 Sep-20 Net bank debt Other financing 13 1 Net debt includes net bank debt of $47.7million
Slide 14: Outlook for FY21 – remains uncertain
Outlook for FY21 – remains uncertain • Consenting activity in NZ has been stronger than we had anticipated in recent months. However, there is some risk that building activity begins to soften early next year as a result of broader macro-economic factors as well as local issues such as extended bord
Slide 15: Our strategy and focus remains unchanged
Our strategy and focus remains unchanged Building resilience and Sustaining positive Prioritising debt defending Metroglass’ trajectory in Australia, reduction to provide leadership position and benefiting from increased optionality for growing demand for the future double-glazing 15
Slide 16: Q&A
Q&A 16
Slide 17: Contact information
Contact information Metro Performance Glass Limited 5 Lady Fisher Place, East Tamaki, Auckland 2013 Ph: + 64 9 927 3000 www.metroglass.co.nz/ Simon Mander – Chief Executive Officer Simon.Mander@metroglass.co.nz (+64) 029 636 2661 Brent Mealings – Chief Financial Officer Brent.Mealings@metroglass.co.
Slide 18: Appendix: Reconciliation of non-GAAP to GAAP profit measures
Appendix: Reconciliation of non-GAAP to GAAP profit measures 1H21 1H20 Non-GAAP financial information Half year to 30 September ($M) ($M) • Group results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS, being: Profi
Slide 19: 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
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