Metro Performance Glass FY17 Full ‐ Year Result Presentation 25 May 2017 Strictly confidential and not for public release
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 environment in which the company operates. Forward looking statements can generally be identified by the use of forward looking words such as “anticipate”, “expect”, “likely”, “intend”, “should”, “could”, “may”, “propose”. “will”, “believe”, “forecast”, “estimate”, “outlook”, “target”, “guidance” and other similar expressions. Forward looking statements, opinions and estimates provided in this Presentation are inherently uncertain and are based on assumptions and estimates which are subject to certain risks, uncertainties and change without notice. Because these statements are forward looking, Metro Performance Glass’ actual results could differ materially. Any past performance information in this Presentation should not be relied upon as (and is not) an indication of future performance. Media releases, management commentary and analysts presentations are all available on the company’s website. Please read this presentation in the wider context of material previously published by Metro Performance Glass. There is no offer or investment advice in this Presentation This presentation is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment advice or a securities recommendation, and does not take into account any person’s individual circumstances or objectives. Every investor should make an independent assessment of Metro Performance Glass on the basis of independent expert financial advice. All information in this Presentation is current at the date of this Presentation, and all currency amounts are in NZ dollars, unless otherwise stated. Metro Performance Glass is under no obligation to, and does not undertake to, update the information in this Presentation, including any assumptions. Disclaimer To the maximum extent permitted by law, Metro Performance Glass and its affiliates and related bodies corporate, officers, employees, agents and advisors make no representation or warranty (express or implied) as to the currency, accuracy, reliability or completeness of the information in this Presentation and disclaim all liability for the information (whether in tort (including negligence) or otherwise) to you or any other person in relation to this Presentation, including any error in it. Strictly confidential and not for public release 1
Agenda 1. Market update and results overview – Nigel Rigby, CEO 2. Financial results – John Fraser ‐ Mackenzie, CFO 3. Market trends – Nigel Rigby 4. Update on growth initiatives – Nigel Rigby 5. Strategy and outlook – Nigel Rigby Strictly confidential and not for public release 2
A longer ‐ term view: transformation of Metro Glass’ production New Zealand's first ever Before the Building Code up ‐ cycle for double glazing changes in 2007, circa. 90%+ of 35,000 90% NZ Dwelling Consents (Last 12 Months) Metro Glass’ window manufacturing were single 80% 30,000 panes of glass, with double ‐ 70% glazed units being < 10% 25,000 60% Today, double ‐ glazed units 20,000 50% generate more than half of our 2007: NZ Building 40% revenue and account for more Code changes 15,000 supported the uptake than 80% of all window glass we 30% of double ‐ glazing process 10,000 20% 5,000 The use of more complex 10% products like digital printing, 0 0% screen printing, lamination and 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 low emissivity glass (Low E) is Calendar years also rapidly increasing. Low E is NZ dwelling consents now utilised in c. 20% of all of Estimated % of Metro Glass windows 1 that were double ‐ glazed Estimated % of Metro Glass windows that were double ‐ glazed double ‐ glazed units produced Estimated % of Metro Glass double ‐ glazed units including Low E Estimated % of Metro Glass double ‐ glazed units with Low E 1 Includes residential, commercial & RetroFit window manufacturer sales. Source: Statistics NZ (March 2005 – March 2017), Company information. Strictly confidential and not for public release 3
Macro conditions in New Zealand Low interest rates, strong net migration, a robust economy and the persistent housing shortage in the upper North Island are continuing to fuel a supportive market backdrop. Activity in Canterbury is expected to continue its decline New Zealand residential new build consents ‐ previous peak Total New Zealand revenue remains aligned to 9 month was 33,281 units in June 2004 lagged NZ housing Metro’s rolling 12 month NZ revenue ($000) 240,000 40,000 12 month residential consents Long term average: 22.1k 230,000 35,000 consents per annum 220,000 30,000 210,000 25,000 200,000 190,000 20,000 180,000 15,000 170,000 10,000 Demand for glass lags 160,000 consents by six to 5,000 150,000 twelve months 140,000 0 18,000 20,000 22,000 24,000 26,000 28,000 30,000 '87 '89 '91 '93 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 Residential consents lagged by 9 months Source: Company information, Statistics NZ (April 1987 – March 2017) Strictly confidential and not for public release 4
Residential and non ‐ residential backdrops remain supportive New Zealand – # of residential consents 1 Victoria & New South Wales – # of detached dwelling approvals 3 • • Detached dwelling Residential dwelling 65,263 30,626 63,589 27,789 consents for the 12 (house) approvals for the 12 months to 31 months to 31 March 29,062 28,669 2017 rose +10% March 2017 in 21,716 18,937 VIC/NSW rose +3% • North Island + 15% 36,201 34,920 8,852 8,910 • Victoria + 4% • South Island + 1% FY16 FY17 FY16 FY17 • (Canterbury ‐ 8%) New South Wales + 1% VIC NSW South Island North Island New Zealand – value of non ‐ residential consents ($bn) 2 Victoria & New South Wales – value of A&A (A$bn) 4 • • The value of non ‐ The value of 6.5 4.9 5.8 4.5 residential dwelling alterations and consents for the 12 additions for the 12 2.4 2.3 4.1 months to 31 March months to 31 March 3.6 2017 rose +11% 2017 in VIC/NSW rose +8% 2.5 2.2 2.2 2.4 • North Island + 14% • Victoria + 13% FY16 FY17 FY16 FY17 • South Island + 7% VIC NSW • South Island North Island New South Wales + 2% 1. Source: Statistics NZ, number of residential dwelling consents (12 months to 31 March 2017). 2. Source: Statistics NZ, value of non ‐ residential consents (new plus altered; 12 months to 31 March 2017). 3. Source: Australian Bureau of Statistics, 8731.0 Building Approvals, Australia, tables 22 and 23 (12 months to 31 March 2017). 4. Source: Australian Bureau of Statistics, 8731.0 Building Approvals, Australia, tables 43 and 44 (12 months to 31 March 2017). Strictly confidential and not for public release 5
FY17: Full year result highlights Group revenue rose 30% to $244.3m 1 including seven months of trading from 1 Australian Glass Group (AGG) 2 . Excluding AGG, NZ revenue rose 14% to $213.8m Normalised EBITDA 3 rose 20% to $44.9m; Normalised NPAT 3 rose 11% to $21.3m 2 Completed the acquisition and integration of AGG 3 Commercial glazing revenue grew 23% to $51.0m 4 RetroFit double glazing revenue grew 23% to $17.2m 5 Declared a fully ‐ imputed final dividend of 4.0 cents per share, taking total FY17 6 dividends to 7.6 cents per share 1 All prior period comparisons are to the full year ended 31 March 2016 (FY16) unless otherwise stated. 2 Metro Glass acquired Australian Glass Group on 1 September 2016. 3 Normalised EBITDA and normalised NPAT are non ‐ GAAP measures of financial performance. Additional details are provided on slide 28 of this release. Strictly confidential and not for public release 6
Financial results Strictly confidential and not for public release
FY17: Group revenue Metro Glass group revenue (NZ$ million) 1,2 +14% (NZ) +30% 244.3 +23% +10% +23% 188.0 145.6 132.4 51.0 41.6 30.5 17.2 14.0 ‐ Residential (NZ) Commercial glazing RetroFit (NZ) Australian Glass Group Metro Glass group (NZ) (7 months) FY16 FY17 Residential sales to (1) window manufacturers, (2) merchants, and (3) retail. Notes: 1. The allocation of sales between residential and commercial application is difficult as Metro Glass doesn’t always know the end use of a piece of glass. Commercial sales noted here are those that are those sales captured in Metro Glass’ four commercial glazing entity P&Ls, and will include some residential glazing sales and services. 2. Residential revenues include sales to residential window manufacturers, merchants, and retail. Strictly confidential and not for public release 8
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