Slide 1: Metro Performance Glass Interim Results
Metro Performance Glass Interim Results For The 2 Months Ended 30 September 2014 Strictly confidential and not for public release
Slide 2: Disclaimer
Disclaimer This presentation, dated 21 November 2014, provides additional comment on Metro Performance Glass’s financial results announcement for the two months ended 30 September 2014. It should be read in conjunction with the documents attached to that announcement, which highlight future outlook,
Slide 3: Results Summary – 2 Months Ended 30 September 2014
Results Summary – 2 Months Ended 30 September 2014 Operating profit before interest tax and abnormal items of $7.0 million. Increasing EBITDA margins vs the pcp. Abnormal expenses (primarily IPO expenses) of $3.9M, which is in line with the prospectus forecast. Net profit after tax of $0.8 million.
Slide 4: Business snapshot
Business snapshot Metro is the leading value added glass provider in New Zealand with >50% share and national coverage through 17 sites, >700 employees and >260 vehicles Key facts Key activities Market leader with >50% share (~2x largest competitor) Cut and Arris National coverage through 17 sites L
Slide 5: Metro's business model
Metro’s business model Metro’s business model is driven by customised product, short lead times and a broad product range that requires flexible manufacturing equipment and processes Customised product Short lead time New Zealand residential windows are generally Industry standard for delivery of wi
Slide 6: Key market characteristics
Key market characteristics The New Zealand value added glass market is a just-in-time (JIT) market with limited imports New Zealand construction market has a high level of customisation Glass orders vary in terms of window size, colour, finishes, etc. ( requires Customisation manufacturing flexibili
Slide 7: Results Overview
Results Overview Strictly confidential and not for public release
Slide 8: Non GAAP Profit and Loss Statement for the 2 months ended 30 September
Non GAAP Profit and Loss Statement for the 2 months ended 30 September $000’s Comment Net Sales 31,555 Sales +13.4% vs pcp Gross Margin 16,750 Gross Margin % 53.1% Distribution and glazing 5,177 Selling and marketing 1,235 Administration expenses 3,346 Recurring EBIT (EBIT before abnormals) 6,992 Ab
Slide 9: Sales have been solid and momentum is building
Sales have been solid and momentum is building Sales Growth vs pcp 16% 14% 12% Sales have continued to build. 10% Sales growth has been solid in all geographies. 8% South Island supported by the Christchurch 13.9% rebuild has delivered strong sales growth. 13.4% 6% Growth in window residential and c
Slide 10: Margins have met expectations
Margins have met expectations EBITDA Margins % 2 Months Ended 30 Sept 26.00% Cost components Cost Relative Price 24.00% to Volume 22.00% Raw materials Higher Flat 20.00% 18.00% Operating labour Flat Higher 25.0% 16.00% 22.9% Other Lower Flat 14.00% 12.00% Overhead Lower Higher 10.00% 2013 2014 Actua
Slide 11: Balance Sheet / Capital Structure
Balance Sheet / Capital Structure Key Items As At 30 September $000’s Cash 7,380 Working capital 15,905 Other assets 12,965 Property plant and equipment 30,073 Intangibles 126,395 Total Assets 192,718 Senior Debt 55,000 Other liabilities 3,359 Total liabilities 58,359 Net Assets 134,359 Equity 302,7
Slide 12: Market Update
Market Update Strictly confidential and not for public release
Slide 13: Metro's revenue is growing with consents
Metro’s revenue is growing with consents Metro Revenue vs Housing Consents (9 Month Lag) 200,000 Comments: Residential consents for 30 190,000 June 2014 (9 month lag) to 30 March is 23,318 implies sales of Sales for 2 months ended 30 September was 13% $122M for the eight months ahead of prior year a
Slide 14: The commercial pipeline is growing
The commercial pipeline is growing Acceptances $000’s Forward Work $M’s Rolling 3 Mth Average As At 4,000,000 14 3,500,000 13.5 3,000,000 13 2,500,000 2,000,000 12.5 13.8 1,500,000 12 13.5 13.3 1,000,000 12.7 11.5 500,000 11 11.7 - May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 10.5 201
Slide 15: The Commercial market is active
The Commercial market is active 151 Cambridge almost complete • 5, 246 sqm • N 70 and digitally printed laminate Successfully tendered for Awly Building • 4,500 sqm • Stop Ray 50 and Tempaclad Successfully tendered for Burwood Hospital • 6,500 sqm • Stop Ray 50T Strictly confidential and not for pub
Slide 16: Auckland Site Consolidation Update
Auckland Site Consolidation Update Strictly confidential and not for public release
Slide 17: Auckland site consolidation is largely on track
Auckland site consolidation is largely on track Metro’s Auckland operations are in the process of being automated and consolidated Consolidation of existing Auckland sites (Head Office and adjacent Bulk Glass Store, Retrofit and Metro Frameless Glass offices, and South and Central factories) into on
Slide 18: Key assumptions in respect to Auckland one-off costs for the 8 months
Key assumptions in respect to Auckland one-off costs for the 8 months ended 31 March 2015 Prospectus Latest Forecast Assumption Assumption $000’s Component $000’s Comment Fixed asset impairment* 1,523 1,523 No additional impairments expected Lease exit costs* 2,954 Three sites with lease tails. Larg
Slide 19: Retrofit Update
Retrofit Update Strictly confidential and not for public release
Slide 20: Retrofit sales have lagged – the market focus has been on new builds
Retrofit sales have lagged – the market focus has been on new builds Net Sales FY15 vs FY14 Retrofit Sales $000’s 2 Months to 30 September 2014 $M’s FY 15 vs FY 14 1,400 2.4 1,200 2.2 1,000 2 800 1.8 600 1.6 2.2 2.2 400 1.4 200 1.2 0 April May June July August September 1 FY14 FY15 Fy 2014 Fy 2015 S
Slide 21: We have done a lot to improve the overall branding of Retrofit
We have done a lot to improve the overall branding of Retrofit New Branding – Change from Metrofit to Retrofit to improve exposure – rationale, retrofit is a common term used in the building industry and with consumers. New improved website – Along with the brand change a new website has been develo
Slide 22: We have also stepped up promotional activity
We have also stepped up promotional activity Over 500,000 homes targeted for the direct mail campaign. The target is specific to homeowners that have a household income of +$100k and are most susceptible to the retrofit double glazing offer. Retrofit has been represented at all the major consumer ho
Slide 23: Summary and Q&A
Summary and Q&A Strictly confidential and not for public release
Slide 24: Summary
Summary Financial results to date on track o Sales positive to pcp o DIFOT negatively impacted by lumpy volumes and product complexity which is recovering o Margins on track Auckland site consolidation on track for late January start-up Retrofit sales have lagged in favour of new builds Assuming the
Slide 25: Contact information
Contact information Metro Performance Glass Limited (Up to 12 December) Unit E 15 Kerwyn Ave, East Tamaki Auckland 2013 New Zealand Ph: + 64 9 927 3000 (From 12 December) 5 Lady Fisher Place, East Tamaki Auckland 2013 New Zealand Ph: + 64 9 927 3000 www.metroglass.co.nz/ Nigel Rigby – Chief Executiv