Metro Performance Glass Ltd · NZX:MPG
Metro Performance Glass — 8 months ended 31 Ma Earnings Presentation
27 slides from Metro Performance Glass's earnings presentation, May 27, 2015
Slide 1: Metro Performance Glass
Metro Performance Glass Results For The 8 Months Ended 31 March 2015 Strictly confidential and not for public release
Slide 2: Disclaimer
Disclaimer This presentation, dated 27 May 2015, provides additional commentary on Metro Performance Glass’s financial results announcement for the eight months ended 31 March 2015. It should be read in conjunction with the documents attached to that announcement, which highlight future outlook, exp
Slide 3: About Metro Performance Glass
About Metro Performance Glass Largest glass processor in New Zealand with +50% share (~2x largest competitor). Converts float glass into end use products and applications including windows, shower screens, balustrades, splashbacks and other applications. Only full service supplier offering cut and a
Slide 4: Metro Senior Management Team
Metro Senior Management Team Nigel Rigby Insert Photos Insert Photos Awaiting Update Geoff Rasmussen John Fraser-Mackenzie Dean Brown Barry Patterson • GM Operations • CFO • North Island Region Manager • South Island Region Manager (from 6 July) • 17 years with Metro. • Previously Finance Director a
Slide 5: Results Summary – 8 Months Ended 31 March 2015
Results Summary – 8 Months Ended 31 March 2015 A strong start for Metro Performance Glass: o PFI earnings achieved - Net profit after tax of $9.6M exceeds prospective financial information (PFI). o Auckland site consolidation completed on time and budget. o Auckland plant operating since January. o
Slide 6: Results Overview
Results Overview Strictly confidential and not for public release
Slide 7: PFI Forecast: Slightly weaker sales mitigated by cost management
PFI Forecast: Slightly weaker sales mitigated by cost management $000’s Actual PFI Change Net Sales 114,998 117,792 -2.4% Gross Margin 60,216 62,537 -3.7% Sales slightly weaker than PFI as consents did not convert into revenue as quickly as in the Gross Margin % 52.3% 53.1% -0.8pts past. Distributio
Slide 8: Margins have met expectations
Margins have met expectations Cost savings in overheads and marketing have offset slightly lower sales and higher labour costs EBITDA Margins % 8 Months Ended 31 March Raw material costs were flat as a % of sales, 26.0% purchasing costs remain flat after impact of hedge 24.0% on foreign currency pur
Slide 9: Abridged Balance Sheet / Capital Structure
Abridged Balance Sheet / Capital Structure Key Items As At 31 March $000’s Actual PFI Cash 7,609 11,375 Working capital 21,105 20,438 Other assets 353 1,843 Property plant and equipment (note 1) 46,244 48,865 Intangibles 125,397 125,397 Total Assets 200,708 207,918 Senior Debt 55,000 55,000 Other li
Slide 10: Auckland Site Consolidation Update
Auckland Site Consolidation Update Strictly confidential and not for public release
Slide 11: Auckland automation has gone to plan
Auckland automation has gone to plan In January we opened the new automated Auckland processing facility which is the most advanced in Australasia We are very pleased with the way the project has proceeded, on-time and on budget. Plant is now fully operational with the exception of the automated edg
Slide 12: Auckland site consolidation has gone very well
Auckland site consolidation has gone very well Auckland Restructuring Expenses Actual PFI Component $000’s Project involved exiting 5 sites and opening 1. 2 sites fully exited, 1 sub-leased, 1 to be exited at Relocation and make good 919 1,300 30 June 2015 (Patiki Road). 1 site being reviewed. Dupli
Slide 13: Sales and Market Update
Sales and Market Update Strictly confidential and not for public release
Slide 14: Sales growth has not translated as expected
Sales growth has not translated as expected Daily Sales Growth vs pcp 16.0% 14.0% Growth in window residential and commercial has performed strongly, particularly in Auckland 12.0% and Christchurch 10.0% Sales growth has not accelerated as contemplated in the prospectus. 8.0% 13.9% Sales growth has
Slide 15: Consents have not converted into sales as quickly as in the past
Consents have not converted into sales as quickly as in the past Metro Revenue vs Housing Consents (9 Month Lag) 180,000 The last 6 months has seen a deviation in sales correlation with 9 month lagged residential consents. 170,000 Last 6 data points would all be below the line of best Metro’s rollin
Slide 16: The commercial pipeline continues to grow
The commercial pipeline continues to grow Commercial Sales $M Forward Orders $M's 3.5 As At Month End 18 16 3.0 15.6 15.8 14 15.2 13.5 13.8 13.9 12 13.3 13.3 2.5 12.7 12.3 11.7 10 8 2.0 6 4 1.5 2 0 1.0 Strictly confidential and not for public release 15
Slide 17: The Commercial market is active
The Commercial market is active Anecdotally, activity in the commercial sector is increasing. We are now quoting an increasing volume of work. Our increase in forward work (acceptances) supports this. Awly Building Conversion of acceptances to revenue is hard to predict with some jobs experiencing c
Slide 18: Retrofit Update
Retrofit Update Strictly confidential and not for public release
Slide 19: Retrofit sales have started to accelerate
Retrofit sales have started to accelerate Retrofit Sales FY14 vs FY15 April May June July August September October November December January February March 2014 2015 Strictly confidential and not for public release
Slide 20: We launched TV in the third week of April
We launched TV in the third week of April which is the lynch pin of our promotional activity Television Print Web Peter Wolfkamp, a well recognised and Advertorial on RetroFit in the New A brand new modern, easy to navigate reputable builder fronts the new TV Zealand Herald special feature Spaces. w
Slide 21: We have improved our installation teams
In addition, we have improved our installation teams to ensure effective delivery and higher productivity Install teams have been fully trained on timber and aluminium retrofits and use the latest tooling and installation techniques to improve productivity, quality and the volume of installations. I
Slide 22: Outlook
Outlook Strictly confidential and not for public release
Slide 23: Glass Acquisition
Glass Acquisition On 2 April Metro acquired the assets of Mainland Glass. Mainland Glass is a small glass processor in Christchurch. The integration was seamless and without incident. Ongoing we may make small bolt-on acquisitions that either add to our distribution footprint or our product range. W
Slide 24: Outlook
Outlook The inability (of the industry) to convert consents into revenue as quickly as in the past could negatively impact short term revenue growth. We believe the cyclical increase in housing construction will continue for longer, albeit with lower peaks. Commercial sales are increasing as a % of
Slide 25: Summary and Q&A
Summary and Q&A Strictly confidential and not for public release
Slide 26: Summary
Summary A good start for Metro Performance Glass o PFI earnings achieved o Auckland consolidation completed o New Auckland plant up and running o Platform laid for Retrofit Overall building activity remains robust, but the conversion of residential consents into revenue is lagging. Similarly, commer
Slide 27: 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/ Nigel Rigby – Chief Executive Officer nigel.rigby@metroglass.co.nz (64) 9 927 3000 John Fraser-Mackenzie – Chief Financial Officer john.fraser-mack
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