MPG – 2018 Interim Results Release

1 
 
NZX, ASX and Media Release                                                 20 November 2017 
 
RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2017 
Metro Glass reports increased Australian contribution offset by softer than 
anticipated construction activity in NZ resulting in flat half year net profit  
Summary of results for the six months ended 30 September 2017 (1H18)
 1
 
$m New ZealandAustraliaGroup 
 1H18 
(6 months) 
1H17
(6 months) 
1H18
(6 months) 
1H17
2
(1 month) 
1H18 
(6 months) 
1H17
(6 months) 
Revenue 112.1 111.729.64.6141.7 116.3
Segmental EBITDA
3
 21.4 23.83.90.8 
Normalised
4
 EBITDA  24.7 24.0
Reported EBITDA  24.7 23.1
Normalised NPAT  11.8 12.5
Reported NPAT  11.8 11.5
 
 Strong group operating cash flow of $17.6 million in the half year, up +252% from $5.0 million in 1H17 
 NZ RetroFit double glazing revenue grew 14.4% to $11.6 million 
 NZ Commercial glazing revenue fell 6.1% to $25.2 million, however the commercial forward book grew 
from $29.7 million 
to a record $30.7 million 
 Declared a fully‐imputed interim dividend of 3.6 cents per share, in line with 1H17 
 Launched a Strategic Review of the business, expected to be completed by March 2018 
 Peter Griffiths elected as the new Chairman effective today, following Sir John Goulter’s retirement
 
Metro Performance Glass (NZX.MPG, ASX.MPP, Metro Glass) today reports net profit after tax for the six months 
to 30 September 2017 of $11.8 million, broadly in line with the result achieved in the same period a year ago, 
and the financial guidance provided at the Annual Shareholders’ Meeting in August 
2017. 
While the company maintained its leadership position in the Australasian glass processing industry and held its 
glass category share in NZ above 55%, construction activity levels in NZ were considerably softer than 
anticipated. The company’s half year result was also impacted by inefficiency in factory labour and continuing 
pricing pressures
 in the South Island, somewhat offset by an increased contribution from Australian Glass Group. 
Anticipated growth in NZ residential and commercial construction activity in the six month period did not 
eventuate, contributing to a disappointing financial result in NZ. The sector was adversely impacted by housing 
affordability and the availability 
of credit, difficult winter conditions, uncertainty around the general election, 
and continued industry‐wide capacity constraints. 
New Zealand revenue rose marginally to $112.2 million from $111.7 million in the prior corresponding period. 
EBITDA fell by $2.4 million or 10% to $21.4 million, impacted by competitive pricing pressures in the South 
Island,
 factory labour utilisation and a spike in electricity prices during the period. However, pleasing progress 
                                                            
1
 All prior period comparisons are to the half year ended 30 September 2016 (1H17) unless otherwise stated. 
2
 Australian Glass Group (“AGG”) was acquired on 1 September 2016.  Results for the Australia segment include 1 month of ownership for 
1H17 and 6 months of ownership for 1H18.
 
3
 All non‐Generally Accepted Accounting Principles (GAAP) financial measures are defined and reconciled to a GAAP measure on page 5. 
4
 EBITDA and NPAT were normalised in the prior period to exclude $1.0m of one‐off expenses related to the acquisition of AGG.  

 
 
 
 
2 
 
was made in the Company’s development businesses particularly with profitability improvements delivered in 
both Auckland commercial glazing and Auckland RetroFit. 
Sales in the NZ commercial glazing business fell 6.1% to $25.2 million versus the same period last year as the 
business focussed on profitable growth and projects within the business’ core
 competencies. Installation of 
glass at the Acute Services Building at Christchurch Hospital contributed to strong growth in South Island 
commercial glazing. However this was offset by a decline in the North Island following a focus on improved 
profitability, and deferral in the execution on a number of key projects. The 
commercial forward book grew 
3% year on year to $30.7 million at 30 September 2017. 
Auckland commercial glazing delivered considerably improved margins despite a 6.6% decline in revenue in 
the half year following changes to tendering processes and glazier management. These results include the 
integration of the former Mint Glass business
 which has been restructured since its assets were acquired from 
receivership in December 2015.  
The NZ RetroFit double‐glazing business grew half‐year sales by 14.4% to $11.6 million from $10.0 million at 
the same time a year ago. RetroFit has a strong forward order book and the business anticipates
 stronger 
growth in the second half of the financial year. Auckland RetroFit increased revenue by 34% and delivered an 
EBITDA contribution of 15% after making a small loss in the prior corresponding period. 
Australian Glass Group (AGG) sales for the 6 months increased 12% on the prior period (on a 
pro‐forma basis 
assuming AGG had been owned for the entire prior comparable period). This growth was driven by a 33% 
increase in Double Glazed Unit (DGU) sales in Victoria, as penetration of double glazing in residential homes 
continues to increase. 
AGG’s profitability in the half year was impacted by a
 number of short‐term factors that will be addressed by 
improvement programs that the business has in place. Firstly, machine reliability issues were experienced in 
the New South Wales facility that will be improved in the current financial year’s capital expenditure program, 
and secondly AGG’s glass procurement transitioned to an 
international import model utilising Metro Glass’ 
suppliers. This change saw two glass storage facilities opened in the period with attendant costs, but will 
provide cost savings in the second half.   
AGG will spend approximately $9.5 million on capital expenditure in FY18. This will close to double AGG’s DGU 
production capacity, and
 step change the business’ ability to service the growing Victorian and Tasmanian 
markets, with processing capabilities in New South Wales also improved.  
Group revenue for the six months to 30 September 2017 rose 22% to $141.7 million from $116.3 million in the 
same period a year ago, lifted by a 
full six‐month contribution from AGG compared to one month in the prior 
corresponding period. Group EBITDA rose 7% to $24.7 million from $23.1 million in the same period last year. 
Net profit after tax rose 2% to $11.8 million in the half year compared with $11.5 million in the prior
 
corresponding period. Excluding the one‐off AGG acquisition costs in the previous corresponding period, 
Normalised NPAT declined to $11.8 million from $12.5 million in the same period a year ago. 
Operating cash flow improved considerably to $17.6 million in the half year, up 252% from $5.0 million in the 
prior 
corresponding period. The improvement was driven by the increased contribution from AGG, improved 
debtor and creditor management and the timing of tax payments. 
BALANCE SHEET AND DIVIDEND 
The company remains in a secure financial position with strong operating cash flow supporting the capital 
expenditure program, dividends and reduced net debt. Total
 net interest‐bearing debt reduced to $93.9 
million at 30 September 2017 from $94.5 million at 31 March 2017 and $95.4 million at 30 September 2016.  

 
 
 
 
3 
 
The Metro Glass Board has today declared a fully‐imputed interim dividend of 3.6 cents per share, in line with 
the dividend paid in the first half of last year. The record date for dividend entitlements is 9 January 2018 and 
the payment date is 23 January 2018.  
GOVERNANCE 
Sir 
John Goulter retired from the Board effective today, and the Board has elected Peter Griffiths, who joined 
the Board in September 2016, as the new Chairman. The Board wishes to thank Sir John for his contribution to 
Metro Glass from IPO through to today, a period which has seen significant changes
 to the business and the 
environment in which it operates. 
Peter Griffiths said: “Metro Glass is a great NZ Inc. story.  It is a solid business that has grown rapidly in recent 
years and I’m excited by the opportunities that lie ahead.” 
The Board is continuing to evaluate the composition 
of Board. 
STRATEGIC REVIEW 
Following an extended period of growth in volumes and wholesale changes in product complexity in New 
Zealand, Metro Glass is now entering a period of more moderate growth.  Since listing on the NZX and ASX in 
July 2014 the business has held its position as the New
 Zealand market leader and established a technical and 
service capability that is locally and internationally competitive. Metro Glass acknowledges this approach, in the 
face of very strong demand, has come at some cost to short term returns for shareholders.   
As a consequence of significant variations in the timing of both 
residential and commercial work put in place in 
New Zealand between Metro Glass’ assumptions and the actual market, the Metro Glass Board announced that 
it had initiated a Strategic Review in October 2017. 
Peter Griffiths said: “The bones of the group are very solid. This review is serving to ensure that
 the company’s 
business model is effective and efficient for the two countries in which we operate and that we prioritise the 
best opportunities to improve customer experience and financial returns to our shareholders.” 
The Strategic Review is expected to be completed by March 2018. FNZC has been appointed to work 
with the 
Board and management on aspects of this Review.  
MATCHING INVESTMENT WITH DEMAND 
As was advised at the annual meeting in August, Metro Glass had configured its New Zealand business for a 
higher level of activity, but now in recognition of softer than expected conditions, steps have been taken to
 
improve efficiency and capital expenditure plans have been revised.  
The company indicated at its investor day in July 2017 that it expected to incur capital expenditure in FY18 of 
up to $25 million across the Group. This capital spend has been reviewed and is now expected to be in the 
vicinity of $20 million. 
This capital spend will improve processing ability for high specification glass across the Group. It will also 
simplify the operations of the Highbrook plant whilst giving it the capability to more efficiently process larger 
panels of glass.  Additionally the Australian capital spend will step change AGG’s ability
 to service the South 
East Australian market and will ensure the business has the necessary processing capabilities to meet the 
growth in DGU penetration anticipated over the next 2‐3 years. 
Implementation of the programme is on track with key equipment to be installed over the Christmas – New 
Year 
shutdown period, with benefits targeted to be delivered from the start of FY19. Annual capital 
expenditure in the next two years is expected to be in the range of $10 million to $12 million. “Planned capex 
over the next quarter will set Metro Glass up well for FY19 and this is
 in line with the Board’s commitment to 
prudent capital management,” says Peter Griffiths 

 
 
 
 
4 
 
The Company has also engaged an international manufacturing consultancy to help drive increased throughput 
and efficiency at Highbrook, Metro Glass’ largest processing plant. This project is still in its early stages and an 
update on progress will be provided with the Company’s full year results.  
MARKETS 
In New Zealand, residential construction
 activity is forecast to remain around current levels, with continuing and 
significant levels of migration, the current shortage of housing in Auckland, and the new Government’s proposed 
KiwiBuild programme that aims to build 100,000 new homes over 10 years (50% of these in Auckland), 
underpinning demand for new homes. 
While 
economic and demographic fundamentals are expected to support strong demand over the medium‐
term, there are a number of supply‐side constraints dampening growth. These include labour shortages and 
bottlenecks in the materials supply chain, as well as borrowing restrictions put in place by major lenders which 
has had the effect
 of slowing demand in the residential and non‐residential construction markets. 
In Australia, the business is primarily focussed on the rate of DGU penetration in construction of new detached 
dwellings and the alterations and additions markets in Victoria, Tasmania and New South Wales. The increase in 
DGU penetration is expected 
to more than offset the single percentage figure declines currently being seen in 
new building approvals in these states. The value of alterations and additions consented in New South Wales 
remained flat over the past 12 months, but increased close to 10% in Victoria.  
LOOKING FORWARD 
Whilst market activity is 
difficult to predict, forecasters are typically estimating that residential dwelling consents 
in New Zealand will continue in a range of 28,500 to 35,000 per annum in the next 2‐3 years. 
Metro Glass is adjusting its New Zealand business to reflect softer market conditions, and assuming no significant 
variation to the
 Company’s expectations, the Group’s net profit after tax for the 12 months to 31 March 2018 is 
likely to be in the range of $18.5 million ‐ $20.0 million. This compares to $19.4 million for the 12 months to 31 
March 2017.   
To deliver this result, the company is focussing 
on re‐aligning costs to expected volumes and driving processing 
efficiencies at the key Highbrook plant. Strong execution of the Group’s capital investment programme remains 
critical to position the business well for FY19. 
Finally, the Board would like to thank all Metro Glass employees for their efforts over the last six
 months. The 
company has a team of very committed and motivated people who compete hard every day and are committed 
to improving returns. 
/ends 

 
 
 
 
5 
 
HALF YEAR RESULTS WEBCAST AND CONFERENCE CALL: 
Metro Glass will host a conference call today to review the results for the 6 months to 30 September 2017. The 
conference call is scheduled to begin at 10:00am NZDT, 8:00am AEDT and will be webcast simultaneously over 
the Internet. To view the webcast,
 please follow the link available on the company’s investor website: 
http://www.metroglass.co.nz/investor‐centre/. The webcast can also be accessed directly from: 
https://edge.media‐server.com/m6/p/ajnwxv4v. 
Please allow extra time prior to the webcast to visit the site and download streaming media software if required. 
An online archive of the event will be available approximately two hours after the webcast. 
To instead join the conference call, participants will need to dial in to one of the numbers
 below at least 5 
minutes prior to the scheduled call time and identify yourself to the operator. When prompted, please quote 
the conference code: 8456680 
New Zealand Toll Free  0800 423 970  International                 +64 (0)9 9133 622 
Australia Toll Free  1800 573 793  Australia                  +61 (0)2 9193 3706 
United Kingdom Toll Free  0800 358 6377  US/Canada Toll Free 866 548 4713 
 
For further information please contact:  
Andrew Paterson, Investor Relations 
(+64) 027 403 4323 
andrew.paterson@metroglass.co.nz 
 

 
 
 
 
6 
 
APPENDIX 1: GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON‐GAAP RECONCILIATION 
Metro Glass’ standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP) is 
profit for the period, or net profit after tax. Metro Glass has used non‐GAAP measures which are not prepared in 
accordance with New Zealand International Financial Reporting Standards (NZ IFRS) when discussing financial 
performance in this document. The directors and management believe that these non‐GAAP financial measures 
provide useful information to readers to assist in the understanding of the company’s financial performance, financial 
position or returns, and are used internally to evaluate the performance of business units and to establish operational 
goals. These measures should not be viewed in isolation, nor considered as a substitute for measures reported in 
accordance with NZIFRS. Non‐GAAP financial measures may not be comparable to similarly titled amounts reported 
by other companies. Definitions of non‐GAAP financial measures used in this report: 
 EBITDA: Earnings before interest, tax, depreciation and amortisation. 
 EBIT: Earnings before interest and tax. 
 Segmental EBITDA: EBITDA of an operating segment in the Group. Excludes Group costs including 
insurance, professional services, director fees and expenses, listing fees and share incentive scheme 
costs. Further details provided in the Segment Information note of the 2018 Interim Report. 
 Normalised EBITDA: EBITDA, normalised in 1H17 to exclude $1.0m of one‐off expenses related to the 
acquisition of Australian Glass Group (“1H17 AGG Acquisition Expenses”). 
 Normalised EBIT: EBIT, normalised to exclude 1H17 AGG Acquisition Expenses. 
 Normalised net profit after tax, normalised to exclude 1H17 AGG Acquisition Expenses.  
 NPATA is defined as net profit after tax before amortisation of acquisition‐related intangibles and its 
associated tax effect.  
 
Six months to 30 September (NZ$ million) 1H18 1H17 
Normalised net profit after tax 11.8 12.5 
Less: 1H17 AGG Acquisition Expenses  ‐ 1.0 
Net profit after tax (or Profit for the period) (GAAP)
5
 11.8 11.5 
Add back: taxation expense
8
 4.8 5.0 
Add back: net finance expense
8
 2.3 1.7 
EBIT 18.8 18.2 
Add back: depreciation & amortisation
8
 5.8 4.8 
EBITDA 24.7 23.1 
EBIT 18.8 18.2 
Add back: 1H17 AGG Acquisition Expenses ‐ 1.0 
Normalised EBIT 18.8 19.2 
EBITDA 24.7 23.1 
Add back: 1H17 AGG Acquisition Expenses  ‐ 1.0 
Normalised EBITDA 24.7 24.0 
Net profit after tax (or Profit for the period) (GAAP)
8
 11.8 11.5 
Add back: amortisation of acquisition‐related intangibles and its 
associated tax effect 
0.9 0.8 
NPATA 12.7 12.3 
Due to rounding, numbers presented in the table above may not add up precisely to the totals provided. 
                                                            
5
 Extracted from interim financial statements.

---

Strictly
 
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Metro
 
Performance
 
Glass
FY18
 
Interim
 
Results
 
Presentation
20
 
November
 
2017

Strictly
 
confidential
 
and
 
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for
 
public
 
release
1
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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
Agenda1.
First
 
half
 
highlights
 
and
 
market
 
conditions
2.
Financial
 
results
3.
Update
 
on
 
Australian
 
Glass
 
Group
4.
Outlook
5.
Strategic
 
Review
 
and
 
governance
 
changes
2

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
First
 
half
 
highlights
 
&
 
market
 
conditions
3

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1H18:
 
Summary
 
of
 
first
 
half
 
results

Softer
 
than
 
anticipated
 
construction
 
activity
 
in
 
NZ
 
resulted
 
in
 
NZ
 
EBITDA
 
declining
 
13%
 
to
 
$21.0
 
million.
 
NZ
 
revenue
 
increased
 
0.4%
 
to
 
$112.1m,
 
daily
 
sales
 
+2.75%

Strong
 
revenue
 
growth
 
in
 
Australia
 
driven
 
by
 
double
 
glazing
 
sales
 
in
 
Victoria

Group
 
revenue
 
rose
 
22%
 
to
 
$141.7m
1
 
including
 
a
 
full
 
six
 
months
 
of
 
trading
 
from
 
AGG
2
.
 
Reported
 
EBITDA
3
rose
 
7%
 
to
 
$24.7m;
 
Reported
 
NPAT
3
rose
 
2%
 
to
 
$11.8m

Strong
 
operating
 
cash
 
flow
 
of
 
$17.6
 
million,
 
up
 
252%
 
from
 
$5.0
 
million
 
in
 
1H17

Declared
 
a
 
fully
‐
imputed
 
interm dividend
 
of
 
3.6
 
cents
 
per
 
share,
 
in
 
line
 
with
 
1H17

Launched
 
a
 
Strategic
 
Review
 
of
 
the
 
business,
 
completion
 
expected
 
by
 
March
 
2018
4
1234
5
1
All
 
prior
 
period
 
comparisons
 
are
 
to
 
the
 
half
 
year
 
ended
 
30
 
September
 
2016
 
(1H17)
 
unless
 
otherwise
 
stated.
2
Metro
 
Glass
 
acquired
 
Australian
 
Glass
 
Group
 
(AGG)
 
on
 
1
 
September
 
2016.
3
EBITDA
 
and
 
normalised
 
NPAT
 
are
 
non
‐
GAAP
 
measures
 
of
 
financial
 
performance.
 
Additional
 
details
 
are
 
provided
 
on
 
slide
 
20
 
of
 
this
 
release
.
6

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Review
 
of
 
FY18
 
strategic
 
priorities
 
and
 
achievements:
 
half
‐
year
 
snapshot
5
23
45
1
•
Group
 
revenue
 
+22%
 
to
 
$141.7
 
million,
 
NZ
 
revenue
 
+0.4%
 
at
 
$112.1
 
million
 
vs.
 
1H17,
 
daily
  
sales
 
+2.75%
 
vs
 
1H17
•
Maintained
 
leadership
 
position
 
and
 
NZ
 
glass
 
category
 
share
 
above
 
55%
Drive
 
top
 
line
 
growth
 
and
 
glass
 
category
 
market
 
share
•
Inefficiencies
 
in
 
factory
 
labour
 
with
 
activity
 
levels
 
considerably
 
softer
 
than
 
anticipated
•
Engaged
 
an
 
international
 
manufacturing
 
consultancy
 
to
 
help
 
the
 
company
 
increase
 
throughput
 
and
 
increase
 
efficiency
 
at
 
Highbrook.
 
Project
 
is
 
still
 
in
 
its
 
early
 
stages
Improve
 
manufacturing
 
efficiency
•
Commercial
 
glazing
 
revenue
 
fell
 
6.1%
 
to
 
$25.2
 
million
 
as
 
the
 
business
 
focussed
 
on
 
profitable
 
growth
 
and
 
projects
 
within
 
the
 
business’
 
core
 
competencies,
 
and
 
saw
 
project
 
delays
•
Commercial
 
forward
 
order
 
book
 
grew
 
+3%
 
year
 
on
 
year
 
to
 
$30.7
 
million
 
at
 
30
 
September
 
2017
Increase
 
our
 
presence
 
in
 
the
 
commercial
 
market
•
Revenue
 
grew
 
by
 
14%
 
versus
 
the
 
same
 
period
 
last
 
year,
 
led
 
by
 
the
 
North
 
Island
•
Implemented
 
a
 
series
 
of
 
internal
 
process
 
and
 
systems
 
improvements
•
Turnaround
 
of
 
Auckland
 
RetroFit:
 
revenue
 
+34%
 
and
 
15%
 
EBITDA
 
margin
 
(small
 
loss
 
in
 
1H17)
Expand
 
our
 
RetroFit
 
double
 
glazing
 
business
•
Net
 
profit
 
after
 
tax
 
in
 
line
 
with
 
the
 
prior
 
comparable
 
period,
 
following
 
softer
 
than
 
anticipated
 
construction
 
activity
 
–which
 
was
 
a
 
disappointing
 
result
•
Operating
 
cash
 
flow
 
improved
 
to
 
$17.6
 
million,
 
up
 
252%
 
from
 
$5.0
 
million
 
in
 
1H17
Optimise
 
operating
 
performance
•
Reviewed
 
and
 
reduced
 
the
 
FY18
 
capital
 
expenditure
 
program
 
to
 
circa.
 
$20
 
million
•
Implementation
 
is
 
on
 
track
 
with
 
key
 
equipment
 
to
 
be
 
installed
 
over
 
the
 
Christmas
 
–New
 
Year
 
shutdown
 
period,
 
with
 
benefits
 
targeted
 
to
 
be
 
delivered
 
in
 
the
 
first
 
half
 
of
 
FY19
Execute
 
the
 
FY18
 
capex
 
programme
6

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Macro
 
conditions
 
in
 
New
 
Zealand
6
Residential
 
consents
 
lagged
 
by
 
9
 
months
Metro’s rolling 12 month 
NZ revenue ($000)
Source:
 
Company
 
information,
 
Statistics
 
NZ
4
Metro
 
Glass’
 
share
 
of
 
the
 
total
 
quantity
 
of
 
glass
 
purchased
 
and
 
imported
 
into
 
New
 
Zealand
 
(Statistics
 
New
 
Zealand
 
reports
 
aggregated
 
New
 
Zealand
 
data
 
monthly).
 
Metro
 
Glass
 
has
 
maintained
 
New
 
Zealand
 
glass
 
category
 
share
4
of
 
grater
 
than
 
55%
Metro
 
Glass
 
NZ
 
revenue
 
remains
 
relatively
 
aligned
 
to
 
9
 
month
 
lagged
 
NZ
 
housing
 
consents
While
 
strong
 
economic
 
and
 
demographic
 
fundamentals
 
(migration,
 
KiwiBuild,
 
underbuilt
 
Auckland)
 
are
 
expected
 
to
 
support
 
strong
 
demand
 
over
 
the
 
medium
‐
term,
 
supply
‐
side
 
constraints
 
and
 
borrowing
 
restrictions
 
are
 
dampening
 
growth
Metro
 
Glass
 
maintained
 
total
 
glass
 
category
 
share
 
above
 
55%
 
in
 
1H18.
 
This
 
measure
 
fluctuates
 
based
 
on
 
glass
 
purchasing
 
levels,
 
and
 
the
 
business
 
is
 
aiming
 
to
 
reduce
 
inventory
 
over
 
the
 
next
 
12
 
months
 
140,000
 
160,000
 
180,000
 
200,000
 
220,000
 
240,000
20,000 22,000 24,000 26,0
00 28,000 30,000 32,000
55%
61%
58%
9/30/2016
3/31/2017
9/30/2017
05,00010,00015,00020,00025,00030,00035,000
0
50,000
100,000150,000200,000250,000
NZ
 
revenue
 
(last
 
12
 
months)
9
 
month
 
lagged
 
Res.
 
Consents
 
(last
 
12
 
months)

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
•
Residential
 
dwelling
 
consents
 
for
 
the
 
12
 
months
 
to
 
30
 
September
 
rose
 
+3%
•
North
 
Island
 
+6%
•
South
 
Island
 ‐
5%
 
(Canterbury
 ‐
18%)
Residential
 
and
 
non
‐
residential
 
activity
 
remains
 
supportive
 
but
 
was
 
softer
 
than
 
anticipated
 
in
 
New
 
Zealand
7
New
 
Zealand
 
–#
 
of
 
residential
 
consents
1
New
 
Zealand
 
–value
 
of
 
non
‐
residential
 
consents
 
($bn)
2
Victoria
 
&
 
New
 
South
 
Wales
 
–#
 
of
 
detached
 
dwelling
 
approvals
3
Victoria
 
&
 
New
 
South
 
Wales
 
–value
 
of
 
A&A
 
(A$bn)
4
1. Source:
 
Statistics
 
NZ,
 
number
 
of
 
residential
 
dwelling
 
consents
 
(12
 
months
 
to
 
30
 
September
 
2017).
2. Source:
 
Statistics
 
NZ,
 
value
 
of
 
non
‐
residential
 
consents
 
(new
 
plus
 
altered;
 
12
 
months
 
to
 
30
 
September
 
2017).
3. Source:
 
Australian
 
Bureau
 
of
 
Statistics,
 
8731.0
 
Building
 
Approvals,
 
Australia,
 
tables
 
22
 
and
 
23
 
(12
 
months
 
to
 
30
 
September
 
2017).
4. Source:
 
Australian
 
Bureau
 
of
 
Statistics,
 
8731.0
 
Building
 
Approvals,
 
Australia,
 
tables
 
43
 
and
 
44
 
(12
 
months
 
to
 
30
 
September
 
2017).
•
Double
 
glazing
 
penetration
 
is
 
continuing
 
to
 
increase
 
in
 
Australia
•
Detached
 
dwelling
 
(house)
 
approvals
 
for
 
the
 
12
 
months
 
to
 
30
 
September
 
2017
 
in
 
VIC/NSW
 
fell
 ‐
2%
•
Victoria
 ‐
1%,
 
NSW
 ‐
3%
•
The
 
value
 
of
 
alterations
 
and
 
additions
 
for
 
the
 
12
 
months
 
to
 
30
 
September
 
2017
 
in
 
VIC/NSW
 
rose
 
+5%
•
Victoria
 
+10%
•
New
 
South
 
Wales
 ‐
0%
•
The
 
value
 
of
 
non
‐
residential
 
dwelling
 
consents
 
for
 
the
 
12
 
months
 
to
 
30
 
September
 
2017
 
rose
 
+6%
•
North
 
Island
 
+11%
•
South
 
Island
 ‐
3%
9,041
 
8,599
 
20,958
 
22,293
 
30
 
Sept
 
16
 
(LTM) 30
 
Sept
 
17
 
(LTM)
South
 
Island
North
 
Island
29,999
 
30,892
 
2.2
 
2.1
 
3.9
 
4.3
 
30
 
Sept
 
16
 
(LTM) 30
 
Sept
 
17
 
(LTM)
South
 
Island
North
 
Island
6.1
 
6.4
 
36,419
 
36,217
 
29,570
 
28,643
 
30
 
Sept
 
16
 
(LTM) 30
 
Sept
 
17
 
(LTM)
VIC
NSW
65,989
 
64,860
 
2.3
 
2.6
 
2.4
 
2.4
 
30
 
Sept
 
16
 
(LTM) 30
 
Sept
 
17
 
(LTM)
VIC
NSW
4.7
 
4.9
 

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Financial
 
results

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1H18:
 
Group
 
revenue
9
+1%
(6%)
+14%
+22%
Metro
 
Glass
 
Group
 
revenue
 
(NZ$
 
million)
1,2
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 glas
s. The categorisation methodology is
consistent across periods, however Commercial glazing revenue will include some level of residential glazing sales and services.
2. Residential revenues include sales to resid
ential window manufacturers, merchants, and retail.
+0%
 
(NZ)
75.3
 
25.2
 
11.6
 
29.6
 
141.7
 
74.7
 
26.8
 
10.2
 
4.6
 
116.3
 
Residential
 
(NZ)
Commercial
 
glazing
(NZ)
RetroFit
 
(NZ)
Australian
 
Glass
 
Group
(6
 
months,
 
1
 
month)
Metro
 
Glass
 
group
1H18
1H17
•
1H18
 
had
 
3
 
less
 
days
 
sales
 
(
‐
2.4%)
 
than
 
1H17,
 
principally
 
on
 
account
 
of
 
the
 
timing
 
of
 
Easter
 

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1H18:
 
First
 
half
 
results
 
summary
10
Notes:1. EBIT and EBITDA are normalised to exclude $1.0m of one
‐
off, non
‐
deductible expenses related to the acquisition of Austra
lian Glass Group (“FY17 AGG Acquisition Expenses”).
2. Net profit after tax, normalised to exclude FY17 AGG Acquisition Expenses
and tax adjustments relating to IPO expenses and the finalisation of prio
r year tax positions.
Additional detail is provided on slide 28 of this release.
NZ$
 
million
1H18
1H17 %
 
change
Revenue
141.7
116.3
21.9
Normalised
 
EBITDA
1,2
24.7
24.0
2.7
Depreciation
 
&
 
amortisation
5.8
4.8
20.9
Normalised
 
EBIT
1,2
18.8
19.2
(1.9)
Normalised NPAT
2
11.8
12.5
(6.1)
Abnormal
 
items
‐
(1.0)
nm
Reported NPAT
11.8
11.5
1.9
Basic
 
EPS
 
(cents)
6.4
6.2
2.5
Total
 
dividend
 
(cps)
3.6
3.6
‐

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1H18:
 
EBITDA
 
summary
11
Normalised
 
EBITDA
 
bridge:
 
1H17
 
to
 
1H18
 
($m)
24.0
24.7
1.0
1.4
0.4
0.4
0.7
3.1
1H17 Normalised EBITDA
South Island pricing
NZ factory labour
NZ electricity costs
NZ Advertising
NZ profit improvement
AGG EBITDA
(5 months)
1H18 Normalised EBITDA

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
12
1H18:
 
Summary
 
cash
 
flow
 
&
 
balance
 
sheet
Normalised
 
EBITDA
 
rose
 
+3%
 
to
 
$24.7m
 
in
 
1H18
Operating
 
cash
 
flow
 
improved
 
by
 
$12.6
 
million
 
versus
 
1H17,
 
with
 
an
 
the
 
increased
 
contribution
 
from
 
AGG,
 
improved
 
management
 
of
 
debtors
 
and
 
creditors,
 
and
 
the
 
timing
 
of
 
tax
 
payments
Carrying
 
excess
 
glass
 
inventory
 
at
 
30
 
September
 
2017,
 
with
 
opportunities
 
to
 
reduce
 
this
 
over
 
the
 
next
 
12
 
months
The
 
group’s
 
gearing
5
level
 
decreased
 
from
 
37.6%
 
at
 
30
 
September
 
2016
 
to
 
36.7%
 
at
 
30
 
September
 
2017
Total
 
capital
 
expenditure
 
in
 
FY18
 
is
 
expected
 
to
 
be
 
in
 
the
 
vicinity
 
of
 
$20m
 
The
 
Board
 
has
 
declared
 
a
 
fully
 
imputed
 
interim
 
dividend
 
of
 
3.6
 
cents
 
per
 
share
 
(in
 
line
 
with
 
1H17),
 
to
 
be
 
paid
 
on
 
23
 
January
 
2018
 
to
 
all
 
shareholders
 
on
 
the
 
register
 
at
 
9
 
January
 
2018
Notes:1. All references are to Normalised financials that exclude the impact of one
‐
off acquisition
related expenses in the 1H17 period totalling $1.0m.
2. EBIT and EBITDA are non
‐
GAAP measures of financial performance. Additional detail is
provided on slide 20 of this release.
3. Excluding the consideration paid when acquiring AGG.4. Net working capital: trade & other receiv
ables + inventory – trade & other payables.
5. Gearing: net interest bearing debt / (net interest bearing debt + equity).
Key
 
balance
 
sheet
 
items
 
(NZ$m)
1H18
1H17
Net
 
working
 
capital
4
37.7
38.0
Property
 
plant
 
&
 
equipment
62.0
57.0
Total
 
assets
300.2
293.8
Net
 
debt
93.9
94.5
Total
 
shareholders
 
equity
161.7
156.5
Key cash
 
flow
 
items
 
(NZ$m)
1H18
1H17
Normalised
 
EBITDA
1,2
24.7
24.0
Operating
 
cash
 
flows
17.6
5.0
Capital
 
expenditure
3
9.7
4.4
Dividends
 
paid
7.4
7.4

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Update
 
on
 
Australian
 
Glass
 
Group

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Australian
 
Glass
 
Group
 
(AGG)
 
update
South
 
East
 
Australia
 
presents
 
a
 
significant
 
opportunity
 
as
 
double
 
glazing
 
penetration
 
gathers
 
momentum.
 
Metro
 
Glass
 
provides
 
AGG
 
with
 
experience
 
in
 
production
 
efficiency
 
&
 
throughput,
 
procurement,
 
interfacing
 
with
 
customers
 
and
 
product
 
development
–
There
 
are
 
opportunities
 
to
 
improve
 
factory
 
labour
 
efficiency
 
at
 
AGG
 
as
 
throughput
 
improves.
 
Factory
 
labour
 
costs
 
as
 
a
 
percentage
 
of
 
revenue
 
at
 
AGG
 
are
 
more
 
than
 
double
 
that
 
of
 
the
 
New
 
Zealand
 
business
Australian
 
sales
 
for
 
the
 
6
 
months
 
increased
 
12%
 
on
 
the
 
prior
 
period
 
(on
 
a
 
pro
‐
forma
 
basis
 
assuming
 
AGG
 
had
 
been
 
owned
 
for
 
the
 
entire
 
prior
 
comparable
 
period)
–
Driven
 
by
 
a
 
33%
 
increase
 
in
 
Double
 
Glazed
 
Unit
 
(DGU)
 
sales
 
in
 
Victoria,
 
as
 
penetration
 
of
 
double
 
glazing
 
continues
 
to
 
increase
1H18
 
EBITDA
 
of
 
$3.9
 
million,
 
EBITDA
 
margin
 
of
 
13%.
 
AGG’s
 
profitability
 
in
 
the
 
half
 
year
 
was
 
impacted
 
by
 
a
 
number
 
of
 
short
‐
term
 
factors
 
that
 
are
 
being
 
addressed:
–
Machine
 
reliability
 
issues
 
in
 
the
 
New
 
South
 
Wales
 
facility.
 
To
 
be
 
significantly
 
reduced
 
following
 
the
 
FY18
 
capital
 
expenditure
 
program,
 
and
–
The
 
transition
 
of
 
AGG’s
 
glass
 
procurement
 
to
 
an
 
international
 
import
 
model.
 
This
 
change
 
saw
 
two
 
glass
 
storage
 
facilities
 
opened
 
in
 
the
 
period,
 
but
 
will
 
provide
 
cost
 
savings
 
in
 
the
 
second
 
half.
 
AGG
 
will
 
spend
 
approximately
 
$9.5
 
million
 
on
 
capital
 
expenditure
 
in
 
FY18.
 
This
 
will
 
close
 
to
 
double
 
AGG’s
 
DGU
 
production
 
capacity,
 
and
 
step
 
change
 
the
 
business’
 
ability
 
to
 
service
 
the
 
growing
 
Victorian
 
and
 
Tasmanian
 
markets,
 
with
 
processing
 
capabilities
 
in
 
New
 
South
 
Wales
 
also
 
improved
14