Metro Performance Glass : MPP 1H22 Results Presentation

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METRO PERFORMANCE GLASS

1H22 Interim Results Presentation

22 November 2021

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Key messages

• As Covid-19 restrictions reemerged, the Metroglass Group remained committed to stabilising the business and delivering to its customers
• Metroglass' performance was significantly impacted by the Covid-19 lockdown at the end of the half
• Australian Glass Group continues to execute well against its turnaround plan despite prolonged Covid-19 restrictions
• Ongoing supply chain disruption and emerging inflationary pressures are expected to continue however they will continue to be addressed through pricing strategies.
• Our focus on debt reduction has placed Metroglass in a strong position to cope with the immediate impacts of the pandemic

2

The Metroglass Group displayed its resilience in another challenging six-months

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OUR PEOPLE

• Remained focused on safety and wellbeing
• Consistently maintained normal pay for all staff during New Zealand's Alert Level 4
• Encouraged our people to get vaccinated
• Invested in staff promotion, training and capability development. Over 80 apprentices enrolled, and 5 qualifying in the half

OUR CUSTOMERS

• Maintained connections with customers
• Resumed the glass supply chain swiftly once Alert Levels allowed
• New Zealand business achieved highest customer survey results1 (7.8/10) and AGG's results remained solid despite Covid-19 imposed challenges (7.9/10)

OUR BUSINESS

• Successfully reopened all sites in New Zealand under Covid-19 protocols as alert levels allowed
• AGG maintained operations as they coordinated the state-by-stateCovid-19 restrictions and safety requirements
• Group-widecapital Investment to improve capability, quality and unlock capacity
• NZ wage subsidy received ($2.2m)

3

1. Survey question: "On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?"

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1H22 key financial outcomes1

GROUP

Revenue

$116.9m 0%

(1H21: $117.0m)

EBIT		NPAT
$3.0m	-76%	$0.4m
(1H21: $12.8m)		(1H21: $7.6m)

Net debt		Leverage ratio
$47.8m	-6%	2.8x

(1H21: $51.0m)	(1H21: 1.53x)

NEW ZEALAND2

	Revenue	EBIT
	$87.9m, -1%	$4.1m, -68%
	(1H21: $89.2m)	(1H21: $12.8m)
-94%
	AUSTRALIA2
	Revenue	EBIT
	$29.0m, +4%	($0.7m)
n/a	(1H21: $27.8m)	(1H21: $0.4m)

	1 Unless otherwise stated, results are shown in NZ$m and before significant items.
4	2 The full segment note is available in note 2 of the financial statements.

Consenting activity is strong in New Zealand, though there are clear constraints as supply chain and labour issues cap medium term activity

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Total NZ residential consents (9 month lagged, by number)1

14.0%	0.0%		4.8%	12.4%	44,299
		39,420
	37,627	37614
32,996
				24522
				22212
	22269	22141

21125

11871	15358	15473	17208	19777
Sept-19	Sept-20	Mar-21	Sept-21	Mar-22
			Multi-residential			Detached Housing

In the six months to September 2021 (on a 9-month lagged basis):

• Total residential consents rose 4.8%, or 4.0% in floor area (sqm)
• Detached dwelling consents rose 0.3%, with a 11.2% rise in multi-residential which represents 43.7% of all residential consents
• Since the start of 2021 residential consents continued to growth above record levels on a 9-month lag basis

NZ non-residential consents (by value $bn)1

7.6	-7.6%	10.3%	7.7
		7.0

2.3	1.8
1.7

5.3	5.3	5.9

Sep-19		Sep-20	Sep-21
		North Island		South Island

The value of non-residential consents for the 12 months to September 2021 (non-lagged) grew 10.3%

• North Island 11.9%; South Island 5.5%, Canterbury 28.1%
• Non-residentialconsents rebound to pre-covid levels as Metroglass' glazing forward books increase 7% at 30 September 2021 when compared to the prior year

5	1. Source: Statistics NZ