Metro Performance Glass : MPP FY22 results presentation

METRO PERFORMANCE GLASS

For personal use only

Full year result 31 March 2022

For personal use only

Key messages

• The Metroglass Group has managed frequent Covid-19 disruptions and other external pressures well, limiting supply volatility to our customers
• Solid revenue in New Zealand was aided by resilient activity before and after the lockdown, however higher input costs and supply chain disruptions materially impacted profitability
• AGG's transformation into a specialist double-glazing business gained momentum in FY22, despite the Covid-19 induced headwinds, and achieved a further improved EBIT result
• Increases to Metroglass' net debt in FY22 driven by targeted investments in capability, capacity and quality ahead of building insulation requirement changes and an increase in safety stock levels to better manage supply volatility for customers

Our Environmental, Social and Governance

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This year we have continued to build on our approach and reporting of ESG, including;

• Good progress improving safety and wellbeing, with Metroglass TRIFR trending lower
• Continue to invest in our apprenticeship scheme with 8 apprentices qualified in FY22 and 79 currently enrolled
• Proud to have launched the groups first Environmental Sustainability policy
• Initiated workstreams focussed on climate change and related disclosures, understanding our carbon emissions footprint and making efforts to reduce our key resource consumption over the long term
• Continuing to provide training and guidance to hiring managers focussed at eliminating unconscious bias from our recruitment processes and systems

3

Financial highlights

only

GROUP1

For personal use

Revenue

$236.1m

(FY21: $232.3m)

EBIT

$5.9m -66%

(FY21: $17.2m)

Net debt

$52.3m +4.3m

(FY21: $48.0m)

+2%	NEW ZEALAND1
Revenue	EBIT

$178.0, -1% $7.4m, -61%

NPAT		(FY21: $179.8m)	(FY21: $18.7m)
$(0.5)m	-$7.6m
(FY21: $7.2m)		AUSTRALIA
		Revenue	EBIT
Leverage ratio		$58.1m, +11%	$(0.3)m, +57%
3.7x	nm	(FY21: $52.5m)	(FY21: $(0.7)m

(FY21: 1.7x)

4	1	Unaudited financial results. Unless otherwise stated, results are shown in NZ$m and before significant items.

Solid revenue was aided by resilient activity before

onlyand after the lockdown,

however higher input costs and supply chain usedisruptions materially impacted profitability

personalRevenue

$178.0m (1%)

EBIT1

For$7.4m (61%)

• Metroglass' focus on strong and clear communications, safety stock levels, and operational stability, provided certainty to the market and tempered volatility for our customers.
• A mix of external pressures from lockdowns, employee availability, supply chain disruptions and rapid cost inflation significantly impacted our ability to operate efficiently.
• All of our segments were impacted by disruptions to varying degrees, including delays to projects and the availability of other building products in the construction supply chain.
• • Despite the residential segment revenue falling 2% as a result of a reduced operating period, our efforts to balance the portfolio made solid progress as we maintained a stable market share and leadership position.
  • Commercial glazing revenue declined 9%, primarily as lockdowns and supply chain disruptions delayed and extended projects.
  • Retrofit revenue grew 16% benefiting from homeowners seeking to upgrade their homes.
• Improvements to our customer service model has resulted in record levels of customer satisfaction, achieving 8.1/101
• Strengthened Metroglass' strategic positioning with investments in capacity, capability and quality ahead of upcoming building insulation standard changes coming into affect in November 2022.

5 1 Survey question: "On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague"