Metro Performance Glass’ 2018 Results

NZX, ASX and Media Release                                    24 May 2018 
 
Metroglass announces its results for the 2018 financial year and the 
conclusions of its strategic review 
 
Summary of results for the 12 months ended 31 March 2018 (FY18)
1
 
$m New ZealandAustraliaGroup 
 FY18FY17FY18FY17
(7 mths) 
FY18 FY17 
Revenue 212.9213.855.430.5268.3 244.3
Segmental EBIT
2
 29.231.93.23.2 
EBIT before significant items
3
 30.9 33.9
EBIT 28.0 32.9
Profit for the period before significant items
3
18.4 21.3
Profit for the period (or NPAT) 16.3 19.4
 
 Group revenue of $268.3 million (+10%) including a full 12 months of trading from AGG. EBIT of $28.0 
million (‐15%) and NPAT of $16.3 million (‐16%) impacted by significant items 
 Strong operating cash flow of $33.6 million (+92%) and net debt flat at $94.3m 
 Soft 
NZ construction activity resulted in flat NZ sales; RetroFit revenue grew +25% 
 Australian revenue growth supported by Victorian double glazing sales, however capital programme 
disruptions impacted financial results in the final quarter of FY18 
 Completed a $20.6m capital programme involving all plants, plus greenfield Tasmanian plant 
 Declared a
 fully‐imputed final dividend of 3.8 cps, bringing total FY18 dividends to 7.4 cps 
 Conducted a strategic review of the business; changes at board and senior management level 
 
Metro Performance Glass (NZX.MPG, ASX.MPP, Metroglass) today reports Reported net profit after tax for the 
12 months to 31 March 2018
 of $16.3 million, within the guidance provided in early April 2018, and the results 
of its strategic review announced in October 2017. 
Group revenue for year to 31 March 2018, including a full 12 months of trading from Australian Glass Group 
(AGG), rose 10% to $268.3 million. NZ revenue was 
in line with FY2017, or up marginally on a daily sales basis.  
Chair Peter Griffiths said: “The Group had a busy transitional year as it adapted to the softer growth in NZ, 
implemented an extensive capital investment programme and conducted a strategic review of the business. 
Pleasingly, Metroglass has maintained its
 leadership position with its NZ glass category share above 55%.   
“EBIT before significant items fell 9% to $30.9 million this year which was a disappointing result. However the 
cost issues New Zealand faced in the first half have been addressed, and the capital programme that caused 
meaningful disruptions in Australia 
in the final quarter of the financial year is now complete.” 
                                                            
1
 All prior period comparisons are to the full year ended 31 March 2017 (FY17) unless otherwise stated. 
2 
All non‐Generally Accepted Accounting Principles (GAAP) financial measures are defined and reconciled to a GAAP measure in the 2018  
Annual Report also released today, available here: http://www.metroglass.co.nz/investor‐centre/annual‐interim‐reports    
 
3
 EBIT before significant items excludes $2.9m for CEO departure and recruitment costs in FY18, and $1.0m of one‐off, non‐deductible 
expenses related to the acquisition of AGG in FY17. NPAT before significant items in FY17 also excluded tax adjustments relating to IPO 
expenses and the finalisation of prior year tax
 positions.   

    
2 
 
The capital investment programme (totalling $20.6 million) is aimed at delivering improved capability and 
efficiency at each of the Group’s processing plants, as well as better geographic alignment of equipment to 
market opportunities across the Group.  
The NZ programme went largely to plan, however the Australian programme proved challenging with 
significant
 shipping disruptions extending the planned shutdown period. As a consequence, AGG’s sales, costs 
and customer experience were impacted in the second half of the financial year.  
Chief Financial Officer John Fraser‐Mackenzie said: “The Group had strong operating cash flow of $33.6 million 
(+92%), supported by improved working capital management 
and lower tax payments in the year. We also 
were pleased to maintain net debt in line with last year after funding capital expenditure of $20.6 million and 
dividends of $14.1 million. We have considerable headroom in our financing facilities, however looking forward 
debt reduction is a priority for the Group
 given our position in the cycle.” 
Metroglass’ board has declared a final dividend of 3.8 cents per share, taking the total dividends for the year 
to 7.4 cents per share. This is consistent with the Company’s dividend policy range but marginally below last 
year’s payment given the weaker financial result 
and the Company’s focus on debt reduction. The dividend 
will be fully imputed for New Zealand shareholders. The record date for dividend entitlements will be 9 July 
2018 and the payment date will be 24 July 2018. 
New Zealand results 
New Zealand revenue was flat at $212.9 million, with Canterbury activity
 driving a 2% decline in residential 
revenue. New Zealand EBIT fell by $2.6 million (‐8%), with the vast majority of this decline occurring in the first 
half of the year. Underlying profit improvement was offset by pricing pressures in the slowing Canterbury 
region and excess factory labour carried in 
the first half. Financial performance stabilised in the second half, 
with steady sales across the country and no further significant cost or pricing deterioration.  
The business also incurred non‐recurring costs of $2.0 million relating to spikes in NZ electricity pricing (these 
risks have now been hedged) and one‐off consultancy
 costs associated with the strategic review and 
manufacturing improvement projects. 
RetroFit revenue for the year of $21.5 million (+25%) was generated by very strong growth in the second half, 
supported by a new advertising campaign
4
 focusing on the benefits of double glazing in summer and continued 
systems and capability development. 
Commercial glazing revenue of $48.2 million fell 5%, however profitability improved as the business focused 
on projects within core capabilities. The forward book of commercial glazing work remained steady at $28.3 
million. 
Manufacturing performance in 
the Upper North Island was below expectations this year, however plant 
performance and customer service across the Group has rebounded quickly following the capital programme’s 
completion, and has trended positively in FY2019 to date. 
Australian results 
AGG made significant changes in its business during the year, with capital investment resulting in
 the doubling 
of its double glazing capacity, moving to an international float glass import model and opening its third 
processing plant in Hobart, Tasmania. The Tasmanian plant will enable better localised service and frees up 
capacity in the Victorian plant which serviced this market historically. 
AGG had full year revenue 
of $55.4 million supported by growing Victorian double glazing sales, compared to 
$30.5 million for the seven months Metroglass owned AGG in FY2017. Profitability was below expectation due 
to the longer than anticipated disruption from the capital programme and ongoing poor machine reliability in 
the Sydney plant (now addressed by the
 capital programme).  
                                                            
4
 Recent advertising has focused on the benefits from double glazing and LowE glass in summer (keeping the house cooler). View the advert 
by clicking the “Latest on TV” tile at http://www.retrodg.co.nz/. 

    
3 
 
Market conditions 
NZ residential and non‐residential activity remained at historically strong levels this year, however demand 
appears to have plateaued at this level. While strong economic and demographic fundamentals continue to 
support strong activity, supply‐side constraints such as industry capacity, labour and material costs, and credit 
availability limited further
 growth. 
AGG is focused primarily on the detached dwelling segment of new residential construction in South East 
Australia. Supported by strong underlying demand, activity levels are continuing to hold at historically very 
strong levels, in Victoria in particular; and we continue to see evidence of increased penetration of double 
glazing 
in our key markets.  
Recruitment of a new Chief Executive  
Former Metro Glass’ CEO Nigel Rigby left the business in March 2018.  
Metro Glass Chairman Peter Griffiths said, “The recruitment process for the new CEO is progressing. While the 
process is taking time, the board believes that finding the right leader
 to take Metroglass forward is critical for 
its people and its shareholders. CFO John Fraser‐Mackenzie and the senior leadership team are operating the 
company well in the interim, and we thank them and all Group staff for their efforts this year.” 
Strategic review outcomes  
Metroglass is today updating investors 
and analysts on its strategic priorities, and plans to achieve these 
priorities. A copy of the presentation is available on the NZX, ASX and Metroglass websites. 
Mr Griffiths said, “After very strong sales growth over a number of years, we expect that over the next 24 
months activity in our core
 NZ market will remain flat before softening over the medium term.  
“Taking the cycle position into account, we conducted extensive reviews across the business, including 
assessments of each channel and geography, deep dives on our production approach, and considered feedback 
from customers and shareholders. 
“This affirmed our confidence that Metroglass’ 
strategy and purpose remain valid. Metroglass will continue to 
be a customer dedicated organisation that delivers market differentiated glass products and glazing services. 
However, the focus has shifted from expansion and diversification, to optimisation and enhancement of our 
internal capability to execute. 
“The Group has an unrivalled customer proposition, is generating
 strong cash flows, and following a 
considerable capital investment phase, has numerous opportunities for optimisation ahead.” 
The Group’s strategy is based on four key priorities, each with a set of initiatives for delivery in the next 12‐24 
months:  
1) Deliver market leading service to our customers 
Service is a key differentiator for our customers and critical to their success and profitability. The NZ and 
Australian businesses are now well set up to satisfy anticipated market demands over the next 24 months, and 
will focus on processing and installation efficiency, productivity and reliability.  
2) Develop our organisational capabilities
 
Improving our ability to execute against our strategic initiatives is critical, and following a number of years of 
rapid growth, a greater focus will be placed on investing in our people, their capabilities and support systems.  
3) Maintain scale position via product and channel leadership 
Metroglass has grown to service more than 55% of the NZ flat glass market. Scale is an important advantage 
in the NZ market, providing significant manufacturing, procurement and distribution advantages.  
Glass is a rapidly evolving product, and we have invested to keep pace with the rate of change. We will continue
 
to drive product leadership with ‘NZ first’ products via continual market research and innovation. 

    
4 
 
We will continue to maintain our multiple channels to the different key market segments, which offer varied 
cycle exposure and growth opportunities. We will continue to participate in the value chain through to the 
customer in the RetroFit channel for the present.  
AGG will use its significant new double glazing capacity
 and improved supply chain to deliver profitable growth 
in South East Australian market. 
4) Leverage our scale and assets to deliver lowest total delivered cost 
A persistent focus on increasing efficiency and automation and lowering costs is essential to for the long term 
sustainability of the business, and to enable us to compete successfully against imports and changing industry 
dynamics.  
FY2019 financial targets 
Chair Peter Griffiths said: “Future market conditions are always difficult to predict, but
 we expect activity in 
New Zealand to remain close to the current levels for the coming 12 months, with further Canterbury declines 
being offset by growth in other regions.  
“In Australia, activity in AGG’s target markets has held up well. We consider overall market activity may soften 
however AGG will 
still have significant growth opportunities ahead of it as it builds sales capability and utilises 
its increased production capacity. 
As we implement our initiatives across the Metroglass Group in the 2019 financial year, we are targeting Group 
EBIT of between $30 ‐ $33 million capital expenditure of approximately $10 million and repayment
 of between 
$7 – $10 million of debt. We also intend to maintain our current dividend policy. 
 
/Ends 
 
 
 
 
FULL YEAR RESULTS AND STRATEGY UPDATE BRIEFING: 
Metro Glass will host a briefing scheduled to begin at 10:00am NZDT, 8:00am AEDT today, which can be joined 
by webcast or conference call.  
To listen to the webcast, access the company’s website at http://www.metroglass.co.nz/investor‐centre/. An 
online archive of the event will be available after 2pm. 
To join the conference call, participants will need to dial in to one of the numbers below. When prompted by 
the operator, please quote the conference code: 5200407. 
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 800 239 9838 
 
Investor contact:  
Andrew Paterson, (+64) 027 403 4323

---

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Metro
 
Performance
 
Glass
FY18
 
Results
 
Presentation
24
 
May
 
2018

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Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Agenda1.
FY18
 
highlights
2.
Financial
 
results
3.
Market
 
conditions
4.
FY19
 
outlook
 
and
 
financial
 
targets
5.
Strategy
 
update
6.
Q&A
 
session
2

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1.
 
Market
 
conditions
 
&
 
FY18
 
highlights
3

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
FY18:
 
Full
 
year
 
result
 
highlights

Group
 
revenue
 
of
 
$268.3m
 
(+10%)
 
including
 
a
 
full
 
12
 
months
 
of
 
trading
 
from
 
AGG.
 
EBIT
 
of
 
$28.0m
 
(
‐
15%)
 
and
 
NPAT
 
of
 
$16.3m
 
(
‐
16%)
 
impacted
 
by
 
significant
 
items

Strong
 
operating
 
cash
 
flow
 
of
 
$33.6
 
million
 
(+92%);
 
net
 
debt
 
flat
 
at
 
$94.3m

Soft
 
NZ
 
construction
 
activity
 
resulted
 
in
 
flat
 
NZ
 
sales;
 
RetroFit
 
revenue
 
grew
 
+25%

Australian
 
revenue
 
supported
 
by
 
Victorian
 
double
 
glazing
 
sales,
 
however
 
capital
 
programme
 
disruptions
 
impacted
 
financial
 
results
 
in
 
the
 
final
 
quarter
 
of
 
FY18

Completed
 
a
 
$20.6m
 
capital
 
programme
 
involving
 
all
 
plants,
 
and
 
a
 
greenfield
 
Tasmanian
 
plant

Declared
 
a
 
fully
‐
imputed
 
final
 
dividend
 
of
 
3.8
 
cps,
 
bringing
 
total
 
FY18
 
dividends
 
to
 
7.4
 
cps

Conducted
 
a
 
strategic
 
review
 
of
 
the
 
business

Changes
 
at
 
board
 
and
 
senior
 
management
 
level
4
1234
5
6
7
8

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Manufacturing
 
performance
 
and
 
the
 
FY18
 
capital
 
programme
Capital
 
programme
 
aimed
 
at
 
delivering
 
improved
 
capability
 
and
 
efficiency
 
at
 
the
 
Group’s
 
existing
 
six
 
processing
 
plants
 
as
 
well
 
as
 
establishing
 
the
 
seventh
 
plant
 
in
 
Hobart,
 
Tasmania
 
(photos
 
below)
New
 
Zealand’s
 
installation
 
programme
 
was
 
executed
 
on
 
time
 
and
 
budget.
 
The
 
business’
 
customer
 
experience
 
metrics
 
have
 
quickly
 
rebounded
 
and
 
are
 
trending
 
positively
The
 
Australian
 
programme
 
proved
 
challenging
 
due
 
to
 
significant
 
shipping
 
disruptions
 
delaying
 
some
 
key
 
equipment
 
beyond
 
the
 
planned
 
shutdown
 
period.
 
As
 
a
 
consequence,
 
AGG’s
 
sales,
 
costs
 
and
 
customer
 
experience
 
were
 
impacted
 
in
 
the
 
final
 
quarter
 
of
 
the
 
financial
 
year
All
 
sites
 
are
 
back
 
to
 
full
 
operation
 
and
 
are
 
focused
 
on
 
delivering
 
for
 
customers
5
New
 
glass
 
processing
 
plant
 
based
 
in
 
Hobart,
 
Tasmania.

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Maintained
 
leadership
 
position
 
and
 
NZ
 
glass
 
category
 
share
 
above
 
55%
Capital
 
program
 
successfully
 
completed.
 
Plant
 
performance
 
and
 
customer
 
service
 
trending
 
positively
FY18
 
sales
 
in
 
line
 
with
 
last
 
year
 
(up
 
marginally
 
on
 
a
 
daily
 
sales
 
basis),
 
with
 
Canterbury
 
activity
 
declines
 
driving
 
a
 
2%
 
fall
 
in
 
NZ
 
residential
 
revenue
Commercial
 
glazing
 
profitability
 
improved
 
as
 
the
 
business
 
focussed
 
on
 
projects
 
in
 
its
 
core
 
capability.
 
Forward
 
book
 
of
 
work
 
currently
 
at
 
$28.3m
Retrofit
 
revenue
 
grew
 
+25%
 
year
 
on
 
year
 
after
 
a
 
particularly
 
strong
 
second
 
half
 
across
 
the
 
North
 
Island
 
following
 
a
 
successful
 
summer
 
advertising
 
campaign
NZ
 
financial
 
performance
 
stabilised
 
in
 
the
 
second
 
half,
 
with
 
labour
 
and
 
inventory
 
costs
 
aligned
 
to
 
softer
 
activity
 
levels
Underlying
 
profit
 
improvement
 
offset
 
by
 
a
 
number
 
of
 
non
‐
recurring
 
cost
 
items
Transitional
 
year
 
for
 
AGG
 
as
 
it
 
invested
 
significantly
 
in
 
double
 
glazing
 
capacity,
 
moved
 
to
 
an
 
international
 
glass
 
import
 
model
 
and
 
opened
 
its
 
third
 
plant
AGG’s
 
AUD$9.5m
 
capital
 
program
 
has
 
close
 
to
 
doubled
 
AGG’s
 
double
 
glazing
 
production
 
capacity,
 
and
 
step
 
changed
 
the
 
business’
 
ability
 
to
 
service
 
its
 
customers
Underlying
 
performance
 
in
 
Victoria
 
was
 
acceptable
 
with
 
continued
 
growth
 
in
 
double
 
glazing
 
sales
 
as
 
we
 
increased
 
production
 
capacity
 
into
 
a
 
strong
 
market
The
 
New
 
South
 
Wales
 
business
 
had
 
a
 
disappointing
 
year,
 
with
 
revenue
 
impacted
 
by
 
ongoing
 
plant
 
reliability
 
issues
 
prior
 
to
 
the
 
capital
 
programme,
 
followed
 
by
 
installation
 
delays
AGG
 
opened
 
a
 
greenfield
 
processing
 
plant
 
in
 
Hobart,
 
Tasmania
 
in
 
early
 
2018.
 
Enables
 
better
 
service
 
levels
 
for
 
the
 
local
 
market
 
and
 
frees
 
up
 
capacity
 
in
 
the
 
Victorian
 
plant
 
that
 
had
 
serviced
 
this
 
market
 
previously
6
Operational
 
highlights

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
2.
 
Financial
 
results
7

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
FY18:
 
Group
 
revenue
8
(5%)
+25%
+10%
Metroglass
 
Group
 
revenue
 
(NZ$
 
million)
1,2
Notes:1. The allocation of sales between residential and commercial application
s is difficult as Metroglass doesn’t always know the end use of a piece of gla
ss. 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)
(2%)
143.2
48.2
21.5
55.4
268.3
145.6
51.0
17.2
30.5
244.3
Residential
 
(NZ)
Commercial
 
Glazing
(NZ)
Retrofit
 
(NZ)
Australian
 
Glass
 
Group
(12
 
months;
 
7
 
months)
Metroglass
 
Group
FY18
FY17

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
FY18:
 
Full
 
year
 
results
 
summary
9
1. EBITDA before significant it
ems, EBIT before significant items and Segmental EBIT are non
‐
GAAP measures of financial perform
ance. Additional detail is provided on slide 28 of this release.
2. The full segment note is available in the FY18 Annual Report (financial st
atements note 2.1). FY17 D&A has been restated to conform with the current y
ear’s presentation, with NZ
amortisation previously sitting under Group D&A. Significant items for both
FY17 and FY18 are included in the Group Costs line (therefore excluded fr
om Segmental EBIT figures).
Metroglass Group
 
(NZ$m)
FY18 FY17 %
 
chg
Revenue
268.3
244.3
10
EBITDA
 
before
 
significant items
1
43.3
 
44.9
 
(3)
Depreciation
 
&
 
amortisation
12.4
 
11.0
 
13
EBIT
 
before
 
significant
 
items
1
30.9
 
33.9
 
(9)
NPAT
 
before
 
significant
 
items
1
18.4
 
21.3
 
(14)
Significant
 
items
(2.1) (2.0)
7
NPAT
16.3
 
19.4
 
(16)
Basic
 
EPS
 
(cents)
8.8
10.5 (16)
Total
 
dividend
 
(cps)
7.6
7.6
‐
Segment
 
results
 
(NZ$m)
FY18 FY17
4
%
 
chg
New
 
Zealand
Revenue
212.9 213.8
(0)
Segmental EBIT
1
29.2 31.9
(8)
Australia
(12
 
months) (7
 
months)
Revenue
55.4 30.5
n/a
Segmental
 
EBIT
3.2
3.2
n/a

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
FY18:
 
EBIT
 
summary
10
EBIT
 
before
 
significant
 
items
 
bridge:
 
FY17
 
to
 
FY18
 
($m)
33.9
30.9
2.9
1.4
1.7
0.8
0.4
1.2
2.0
2.0
0.3
FY17 EBIT
before significant items
NZ profit improvement
South Island pricing
NZ factory labour
NZ electricity costs
NZ Advertising
Consultancy costs
AGG Segmental EBIT
(5 extra months)
AGG profit decline & capital
programme delays
Other Group costs
FY18 EBIT
before significant items

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
11
FY18:
 
Summary
 
cash
 
flow
 
&
 
balance
 
sheet
Operating
 
cash
 
flow
 
+
 
92%
 
or
 
$16.1m,
 
with
 
improved
 
working
 
capital
 
management
 
and
 
lower
 
tax
 
payments
 
in
 
the
 
year
Group
 
inventory
 
increased
 
$1.1m
 
to
 
$23.5m
 
as
 
AGG
 
transitioned
 
to
 
a
 
glass
 
import
 
model
Excess
 
inventory
 
held
 
in
 
NZ
 
at
 
the
 
half
 
year
 
was
 
wound
 
back
 
in
 
the
 
second
 
half
Accounts
 
payable
 
increased
 
across
 
the
 
Group
 
on
 
improved
 
terms
 
for
 
purchases
 
of
 
glass
 
and
 
imported
 
consumables;
 
also
 
included
 
final
 
capital
 
program
 
payments
 
post
 
commissioning
 
and
 
the
 
CEO
 
settlement
 
paid
 
in
 
April
 
2018
 
Net
 
debt
 
remained
 
flat
 
year
 
on
 
year,
 
while
 
accommodating
 
$20.6m
 
of
 
capital
 
expenditure.
 
Group
 
gearing
3
decreased
 
from
 
37.6%
 
at
 
31
 
March
 
2017
 
to
 
37.0%
 
at
 
31
 
March
 
2018
The
 
Board
 
declared
 
a
 
fully
 
imputed
 
final
 
dividend
 
of
 
4.0
 
cents
 
per
 
share
 
to
 
be
 
paid
 
on
 
24
 
July
 
2018
 
to
 
all
 
shareholders
 
on
 
the
 
register
 
at
 
9
 
July
 
2018
Total
 
FY18
 
dividends
 
of
 
7.6
 
cps
 
are
 
at
 
the
 
top
 
end
 
of
 
the
 
Company’s
 
dividend
 
policy
 
range
 
(77%
 
of
 
NPATA
 
or
 
69%
 
of
 
NPATA
 
before
 
significant
 
items)
 
Notes:1. Excludes the consideration paid when acquiring AGG in FY17.2. Net working capital: trade & other receiv
ables + inventory – trade & other payables.
3. Gearing: net interest bearing debt / (net interest bearing debt + equity).
Key
 
balance
 
sheet
 
items
 
(NZ$m)
FY18
FY17
Net
 
working
 
capital
2
32.6
 
38.0
 
Property
 
plant
 
&
 
equipment
68.4
 
57.0
 
Total
 
assets
300.4
 
293.8
 
Net
 
debt
94.3
 
94.5
 
Total
 
shareholders
 
equity
159.0
 
156.5
 
Key cash
 
flow
 
items
 
(NZ$m)
FY18
FY17
EBIT
 
before
 
significant
 
items
30.9
 
33.9
 
Operating
 
cash
 
flows
33.6
 
17.6
 
Capital
 
expenditure
1
20.6
 
10.1
 
Dividends
 
paid
14.1
 
14.1
 

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
3.
 
Market
 
conditions
12

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Macro
 
conditions
 
in
 
New
 
Zealand
13
Residential
 
consents
 
lagged
 
by
 
9
 
months
Metro’s rolling 12 month 
NZ revenue ($000)
4
Rolling
 
six
 
month
 
metric
 
based
 
on
 
quantities
 
of
 
glass
 
imported
 
into
 
New
 
Zealand
 
(source:
 
Company
 
analysis,
 
Statistics
 
NZ).
 
Data
 
points
 
prior
 
to
 
Mar
‐
18
 
differ
 
slightly
 
to
 
that
 
previously
 
released
 
as
 
the
 
analysis
 
now
 
considers
 
a
 
small
 
number
 
of
 
additional
 
glass
 
tariff
 
codes.
 
Metroglass
 
maintained
 
New
 
Zealand
 
glass
 
category
 
share
4
of
 
greater
 
than
 
55%
 
(rolling
 
6
 
months)
Metroglass
 
NZ
 
revenue
 
remains
 
relatively
 
aligned
 
to
 
9
 
month
 
lagged
 
NZ
 
housing
 
consents,
 
however
 
participation
 
in
 
commercial
 
glazing
 
and
 
RetroFit
 
are
 
lowering
 
this
 
correlation
 
over
 
time
While
 
strong
 
economic
 
and
 
demographic
 
fundamentals
 
(migration,
 
interest
 
rates,
 
underbuilt
 
Auckland,
 
KiwiBuild)
 
continue
 
to
 
support
 
strong
 
activity,
 
supply
‐
side
 
constraints
 
(capacity,
 
costs,
 
credit
 
availability)
 
are
 
dampening
 
growth
Metroglass
 
maintained
 
total
 
glass
 
category
 
share
 
above
 
55%
 
in
 
FY18.
 
This
 
measure
 
fluctuates
 
based
 
on
 
glass
 
purchasing
 
levels,
 
and
 
is
 
expected
 
to
 
fall
 
in
 
1H19
 
due
 
to
 
the
 
Company’s
 
glass
 
inventory
 
reduction
 
program
55%
59%
60%
59%
Sep
‐
16
Mar
‐
17
Sep
‐
17
Mar
‐
18
 
150,000
 
170,000
 
190,000
 
210,000
 
230,000
 
250,000
22,000 24,000 26,000 28,000 30,000 32,000
05,00010,00015,00020,00025,00030,00035,000
0
50,000
100,000150,000200,000250,000
Apr‐16
Jul‐16
Oct‐16
Jan‐17
Apr‐17
Jul‐17
Oct‐17
Jan‐18
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
 
31
 
March
 
2018
 
rose
 
+3%
•
North
 
Island
 
+6%
•
South
 
Island
 ‐
6%
 
Canterbury
 ‐
15%
Residential
 
and
 
non
‐
residential
 
activity
 
remains
 
supportive
 
but
 
growth
 
in
 
New
 
Zealand
 
was
 
less
 
than
 
previously
 
anticipated
14
New
 
Zealand
 
–#
 
of
 
residential
 
consents
1
New
 
Zealand
 
–value
 
of
 
non
‐
residential
 
consents
 
($bn)
2
South
 
East
 
Australia
 
–#
 
of
 
detached
 
dwelling
 
approvals
3
South
 
East
 
Australia
 
–value
 
of
 
A&A
 
(A$bn)
3
1. Source:
 
Statistics
 
NZ,
 
number
 
of
 
residential
 
dwelling
 
consents
 
(12
 
months
 
to
 
31
 
March
 
2018).
 
No
 
lag
 
has
 
been
 
applied.
2. Source:
 
Statistics
 
NZ,
 
value
 
of
 
non
‐
residential
 
consents
 
(new
 
plus
 
altered;
 
12
 
months
 
to
 
31
 
March
 
2018).
3. Source:
 
Australian
 
Bureau
 
of
 
Statistics,
 
8731.0
 
Building
 
Approvals,
 
Australia
 
(12
 
months
 
to
 
31
 
March
 
2018).
•
Double
 
glazing
 
penetration
 
is
 
continuing
 
to
 
increase
•
Detached
 
dwelling
 
(house)
 
approvals
 
for
 
the
 
12
 
months
 
to
 
31
 
March
 
2018
 
rose
 
3%
•
Victoria
 
+6%,
 
NSW
 ‐
2%
•
The
 
value
 
of
 
alterations
 
and
 
additions
 
for
 
the
 
12
 
months
 
to
 
31
 
March
 
2018
 
rose
 
+5%
•
Victoria
 
+6%,
 
NSW
 
+5%
•
The
 
value
 
of
 
non
‐
residential
 
dwelling
 
consents
 
for
 
the
 
12
 
months
 
to
 
31
 
March
 
2018
 
rose
 
+3%
•
North
 
Island
 
+12%
•
South
 
Island
 ‐
14%
8,910
 
8,374
 
21,716
 
23,018
 
FY17
FY18
South
 
Island
North
 
Island
30,626
 
31,392
 
2.4
 
2.0
 
4.1
 
4.6
 
FY17
FY18
South
 
Island
North
 
Island
6.5
 
6.6
 
36,179
 
38,425
 
29,654
 
28,918
 
FY17
FY18
VIC
NSW
ACT
TAS
68,827
 
70,548
 
2.5
 
2.7
 
2.4
 
2.5
 
FY17
FY18
VIC
NSW
ACT
TAS
5.2
 
5.4
 

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
4.
 
FY19
 
outlook
 
and
 
financial
 
targets
15

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Outlook
 
for
 
FY19
Future
 
market
 
conditions
 
are
 
always
 
difficult
 
to
 
predict.
 
Our
 
current
 
expectations
 
are:
•
New
 
Zealand:
 
Activity
 
to
 
remain
 
close
 
to
 
the
 
current
 
levels
 
for
 
the
 
coming
 
12
 
months,
 
with
 
further
 
Canterbury
 
declines
 
being
 
offset
 
by
 
growth
 
in
 
other
 
regions
•
Australia:
 
activity
 
in
 
AGG’s
 
target
 
markets
 
has
 
held
 
up
 
well
 
this
 
year.
 
We
 
consider
 
overall
 
market
 
activity
 
may
 
soften,
 
however
 
AGG
 
will
 
still
 
have
 
significant
 
growth
 
opportunities
 
ahead
 
of
 
it
 
as
 
it
 
builds
 
sales
 
capability
 
and
 
utilises
 
its
 
increased
 
production
 
capacity
As
 
we
 
implement
 
our
 
initiatives
 
across
 
the
 
Metroglass
 
Group
 
in
 
the
 
2019
 
financial
 
year,
 
we
 
are
 
targeting
 
Group
 
EBIT
 
of
 
between
 
$30
 ‐
$33
 
million
 
capital
 
expenditure
 
of
 
approximately
 
$10
 
million
 
and
 
debt
 
repayment
 
of
 
between
 
$7.0
 
– $10
 
million
 
of
 
debt.
 
We
 
also
 
intend
 
to
 
maintain
 
our
 
current
 
dividend
 
policy.
16