Annual Shareholders’ Meeting Presentation and Addresses

NZX.MPG, ASX.MPP                                                           
 
Metro Performance Glass Limited  
Annual Shareholders’ Meeting, 24 August 2018 
 
Chair’s address 
 
Good morning. I would like to begin by reflecting on events since the last ASM. The first point I 
would make is that the Board listened to you. We recognised the need for changes and there have 
indeed been changes: 
1) Changes to the board 
 We have reduced the number
 of directors by one, two directors have stepped down, one 
new director has joined us, we have a new chair and we have reorganised the board 
committees.   
2) Changes to management 
 Nigel Rigby resigned as CEO and yesterday we announced his replacement which I’ll cover 
off in more detail 
later. Our Australian CEO has also recently stepped down.  
 We have also been recruiting. Since October last year, we have on boarded a significant 
amount of new management talent and capability. Within our plants we have filled 7 level 2 
and 21 level 3 positions across New Zealand and Australia.
 We are now fully manned in 
terms of factory leaders and supervisors.  
 The Senior Leadership team has stepped up and has led the organisation very ably and I 
would like to publically acknowledge and thank them all for their efforts.   
3) Changes to the way we communicate 
 You’ll 
have seen increased levels of disclosure as well as much earlier indications of how we 
see the coming financial year unfolding. 
4) Changes to our focus as a business 
 It is on this last point I would like to elaborate on by covering our four key strategic 
initiatives, and then
 close with a brief update on how the 2019 financial year has begun. 
At Metroglass’ our purpose is to be a customer‐dedicated organisation that delivers market‐
differentiated glass products and glazing services.  
While rapidly growing construction activity in recent years supported expansion and diversification, 
we did not execute well. 
We have recognised the need to alter our focus and style. Metroglass is 
now focused on optimising and enhancing our internal capability to execute on the opportunities 
ahead. 
There are four objectives that we're focused on for the next 24 months and beyond.   

    
2 
 
Firstly, we're looking to re‐establish a reputation for consistent and market‐leading customer 
service.  Secondly, we need to build an organisation that really values its people as we look to 
improve execution across the business. Thirdly, the company’s scale position needs to be used to 
good effect, both in 
our processing plants and our distribution system and in our branch operations.  
Our scale across the group gives us significant buying opportunities for raw glass and associated 
consumable components and we're already leveraging that.  Finally, we're driving for a lower unit 
cost position than we currently have which we see as
 essential for the long‐term sustainability of our 
business.   
I’ll now look at each objective in more detail. Firstly, delivering leading market‐leading service for 
our customers. Pleasingly progress on this objective is already apparent as can be seen on the chart 
showing recent improvements at the Highbrook processing plant. 
We are recognising and adapting 
to the fact that we've got different customer groups that appreciate and value, service in different 
ways.   
Getting material into your factory so you can assemble windows, getting glass onto your site so you 
can install it on time, or getting a retrofit unit into your
 house as a residential customer when 
promised, your perception of service and delivery and full on time is different.   
While the Highbrook delivery‐in‐full‐on‐time performance shown on the presentation slides is just 
an example metric and an example plant, this service improvement trend has been apparent across 
our plants in recent months.   
Developing our organisation capabilities is also a key determinant of the Company’s future success. 
We need to build our bench strength in key roles and then retain and value our people. So they stay 
with us and help us improve execution across the business.  
Programs are
 now in place to improve recruitment, induction, how we recognise performance, and 
look at different ways to reward people. We’re aim to markedly increase staff retention, so that we 
can build the deep expertise and capabilities that we need in production, distribution, sales, and 
marketing. We’re also working on improving 
various support systems to help us to work smarter. 
By way of an example here, despite a competitive local labour market, the turnover of plant staff at 
our largest plant Highbrook has fallen by almost 10% over the last three months which has been very 
pleasing.  
The third strategic objective focusses
 on utilising Metroglass Group’s scale, and its position across a 
wide range of channels and markets. This breadth of our product range, participating in multiple 
channels to market and holding a strong market share gives us significant manufacturing, 
procurement and distribution advantages.  
A diversified operating model provides our customer with 
a one‐stop shop and provides the group 
with certain buffers in a market downturn. 
The fourth objective is that the scale and quality assets the Company has today are used effectively 
to drive for a lower cost position than we currently have.  
Continuing to incorporate automation into our manufacturing processes
 is a key lever for us to 
ensure we remain competitive as a domestic manufacturer. By way of example, comparing our 
current factory labour costs as a proportion of revenue in our New Zealand and Australian 
businesses currently shows a material gap. The significant difference in levels of processing 

    
3 
 
automation is one of the key drivers of this gap and we believe we can bring the Australian labour 
efficiency much closer to the New Zealand levels over time.  
As we progress through the 2019 and 2020 financial years: 
 We will have an absolute dedication to excellent service for 
our customers. This doesn’t 
however mean that we will be all things to all people. We're focussed on customers who 
really value our offering, be that in terms of our quality, the breadth of products and 
services we provide, our distribution capabilities, or the depth of our technical knowledge. 
 We'll
 continue to deeply embed a best practice production culture that will deliver sustained 
and consistent performance. The Group has excellent production facilities in place now, so 
the gains we’re targeting will come from supporting, training and engaging our people, and 
driving continual incremental improvements in our processes.  
While John will 
cover our financial performance shortly, the final point I would like to note is that 
while market activity levels look likely to be sustained for some years yet, we will take a conservative 
view on this, and through disciplined capital management we will steadily reduce the Groups debt 
levels. This will
 help to ensure that we are in good financial shape should any downturn in activity 
occur.  
I’ll now provide an overview of early trading for the 2019 financial year to date as well as the current 
views on financial outlook.  
In New Zealand we are pleased with the clear improvements 
made in increasing ‘people’ capabilities 
and in delivering sustained improvements in service levels. Despite variable market conditions, 
financial performance in New Zealand is on‐target and ahead of the same period last year.  
Unfortunately based on year to date trading, Australia is not in the same position. Our recent capital 
investment
 program, related equipment commissioning and the opening of the new Tasmanian 
plant highlighted gaps in organisational capability. 
Having said that, a refreshed Australian senior leadership team is now in place, including an Acting 
AGG CEO and new General Managers in New South Wales and Victoria. 
We continue to have strong 
belief in what this business can achieve over time. Service levels are 
now improving and we’re focussed on building the required capabilities to achieve better returns, 
however as we’ve observed in New Zealand this will take time. 
From a Group perspective, year to date sales are in line with last year,
 but EBIT is behind as a direct 
result of the Australian results. 
Turning to the outlook for the full 2019 financial year, our current expectations are that Group EBIT 
will be at the lower end of previously provided target range of $30 ‐ $33 million, with some risk 
around our Australian 
results as I’ve noted. 
We will provide a further update on progress alongside the Company’s half year results in 
November. 
We were pleased to announce yesterday the appointment of Simon Mander as Metroglass’ new 
CEO, who will join the company in January 2019. 
This appointment followed an extensive international search undertaken
 by the board following 
former CEO Nigel Rigby’s resignation in December 2017 and departure in March 2018. 

    
4 
 
Simon is an experienced and inclusive people leader.  During his career he has specialised in 
performance improvement, strategy development and execution. He has worked internationally in a 
number of industries and has recent experience in the New Zealand and Australian building products 
and manufacturing sectors.   
Simon will join Metroglass from 
Tru‐Test Corporation Ltd, a world leading New Zealand based ag‐
tech company where he is currently the CEO. Prior roles have been with well‐known companies such 
as Fletcher Building, DS Smith, Carter Holt Harvey, Partners in Performance, Lion Nathan and 
McKinsey. He was also a director of NZX listed
 Wellington Drive Technologies for 9 years.  
Simon has a trade background in aircraft engineering and holds a Bachelor of Engineering (Mech) 
from Auckland University. He also represented New Zealand in yachting on a number of occasions 
including in the International 470 class at the 1988 Olympic Games. 
The Board is 
pleased to have attracted such a high‐calibre candidate. We believe Simon will be a 
great addition to the existing senior leadership team, which has very ably led the business forward in 
the intervening period. 
Thank you.  
 
 
Chief Financial Officer’s address 
Good morning everyone. I'd like to start by covering off the 2018 full year result highlights.  These 
results incorporate a full 12 months of Australian Glass Group trading, whereas 2017 included only 
seven months following the acquisition.  Group revenue grew to $268 million this year, up 10% on 
the prior year.
 This growth was driven by Australia, with New Zealand revenue being flat year on 
year.  Our reported Group earnings before interest and tax declined by 15% and reported net profit 
after tax declined by 16%.  The net profit result was impacted by significant cost items relating to the 
departure of 
the CEO.  
Pleasingly, we delivered strong operating cash flows of $33.6 million and we were able to maintain 
flat debt year on year. This was despite a capital program in excess of $20 million that has set us up 
well for the future.  The company declared a final dividend for the
 year of 3.8 cents per share which 
was paid on 24 July, which brought the total dividend for the year to 7.4 cents per share. That's 
within our dividend policy but slightly below what was paid in the prior year, reflecting our focus on 
debt management. 
The Group conducted a 
significant capital upgrade programme in the final three to four months of 
the financial year. This was complicated in as far as it involved all of our seven processing sites in 
New Zealand and Australia, and many of the changes were interconnected.  We were pleased with 
the delivery of the program
 in New Zealand, which was implemented on time and in budget.  
Inevitably the start‐up has an impact on production and service levels but we quickly moved through 
the installation phase into business as usual and we're happy with all the gear that we bought and 
how it's running. 
In 
Australia and more particularly Sydney our program did not go as well and this was exacerbated 
by delays in the arrival of some critical items and that pushed us beyond the Christmas shutdown 
period.  As a result of the delays we lost revenue and incurred additional labour.  The establishment 

    
5 
 
of the new greenfield Tasmanian plant went well and will enable us to provide better service to 
existing Tasmanian customers and to free up capacity in Victoria. 
Overall, the capital program has provided the Group with significant capability enhancements, 
simplified our plants and given us better geographic alignment of equipment 
to where we see the 
market opportunities.   
Looking at the split of Group revenue, the New Zealand residential segment was down 2% on the 
prior year driven primarily by a decline in Canterbury sales, but offset by growth in the North Island. 
Regional South Island also remained a strong market for
 us. 
Commercial revenue declined to $48.2 million but our profitability improved as we focused on 
projects that were better suited to us.  Our forward book of commercial glazing work remained 
relatively steady at $28.3 million.  
Retrofit enjoyed another pleasing year of growth, with revenue up 25% to $21.5 million, and 
a 
particularly strong second half despite the warmer weather over that period. We increased our 
advertising across television and social media and we were more active in regional home shows, 
resulting in higher leads received. We also had a higher conversion rate that contributed to the 
stronger revenue performance. 
Australian Glass
 Group revenue rose to $55.4 million, reflecting a full 12‐month contribution in the 
financial year.  Underlying performance in Victoria was strong with continued growth in sales of 
double glazed units as we increased production from our Victorian plant and sold them into a strong 
market.  New South Wales revenue 
performance was disappointing in the year, having been 
impacted by plant reliability issues prior to the capital program but also delays in the completion of 
the capital program. 
New Zealand segmental EBIT before significant items included some improvement in underlying 
profit, but this was offset by issues including factory labour inefficiency
 and South Island pricing 
challenges early in the year. The result stabilised in the second half in which EBIT was flat year on 
year.  
Some of the noted costs are non‐recurring, including portions of the $1.2 million of consultancy 
costs and $0.8m of higher electricity costs.  
AGG achieved EBIT 
before significant items of $3.2 million, in line with the prior year.  The additional 
five months of reported EBIT were offset by lower revenue and profitability on our New South Wales 
business which was impacted as noted earlier by plant reliability and issues with the capital program.   
AGG’s profit was also
 impacted by transitioning to a float glass import model, which included 
establishing warehouses in Sydney and in Melbourne which will deliver lower costs over the medium 
term but impacted this year’s financial results.  
I’d now like to provide a brief operational update and discuss progress against our four key strategic 
initiatives. 
Our first objective is to ensure we are delivering market leading service to our customers. In New 
Zealand our deliveries in full and on time in the first quarter of FY19 have been the highest 
Metroglass has delivered since the fourth quarter of FY17.  Particularly pleasing in this regard is
 our 
performance in Christchurch and an improvement in our consistency.  As part of our back to basics 
approach we have a pro‐active program managing volumes across our sites and this is working well.  

    
6 
 
In addition to a focus on timely deliveries we are working hard on reducing reworks and improving 
our delivery experience, and continue to see opportunities to improve. 
In Australia, service levels have been gradually improving and our current focus is on sustaining 
these.  This has taken longer than we anticipated, 
but we believe we are now well placed and our 
delivery and quality performance continue to improve. 
Our second objective is to develop our organisational capabilities.  A cornerstone of this is reducing 
our employee turnover and absenteeism and we have launched a variety of programs in this regard. 
The leadership team
 is heavily invested in this process and we are pleased with early progress. As 
Peter mentioned Highbrook has improved dramatically, and we are beginning the process of rolling 
out the initiatives employed there across the rest of the Group.   
From a key personnel perspective we are pleased to have appointed 
new General Managers in each 
of the South Island, New South Wales and Victoria and have an experienced interim CEO in place for 
AGG.   We also have new leadership in place across each of the four NZ factories and have a full 
complement of production managers and supervisors in place across
 all of our production sites. 
Turning to our scale position, our share of total flat glass imports into New Zealand remains over 
55%, but as we flagged this has reduced in recent months as we have worked to lower inventory 
levels. We are also now fully operational in Tasmania and 
confident of the opportunity this market 
presents to us.  Additionally we continue to work on maintaining the best range and will be rolling 
out both new and improved products through the year.   
Fourthly, leveraging our scale and assets to deliver lowest total delivered cost is a critical success 
factor for the
 business.  In New Zealand we face some headwinds with pressure on wage rates in a 
competitive market and increasing fuel costs while Australia will incur higher electricity costs.  That 
said our goal is to offset any cost increase whilst building our service and quality performance. 
Before I finish, on behalf 
of the leadership team I would like to extend our appreciation and 
gratitude to all of the staff at Metro and AGG.  We are very fortunate to have a team of talented and 
experienced people who work hard every day on behalf of all of our stakeholders and we thank 
them
 for their commitment and dedication. 
Thank you.

---

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Metro
 
Performance
 
Glass
Annual
 
Shareholders’
 
Meeting
24
 
August
 
2018

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1
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
Agenda1.
Chair’s
 
address
2.
Chief
 
Financial
 
Officer’s
 
address
3.
General
 
business
 
and
 
shareholder
 
questions
4.
Ordinary
 
business
 
and
 
resolutions
5.
Voting
6.
Refreshments
2

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
1.
 
Chair’s
 
Address
3

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Board
 
of
 
directors
3.
 
Angela
 
Bull
Independent,
 
non
‐
executive
 
Director
Chair
 
of
 
People
 
and
 
Culture
 
Committee
Appointed:
 
May
 
2017
5.
 
Gordon
 
Buswell
Independent,
 
non
‐
executive
 
Director
 
Member
 
of
 
People
 
and
 
Culture
 
Committee
Appointed:
 
October
 
2015
2.
 
Russell
 
Chenu
Independent,
 
non
‐
executive
 
Director
Member
 
of
 
Audit
 
and
 
Risk
 
Committee
Appointed:
 
July
 
2014
1.
 
Peter
 
Griffiths
Independent,
 
non
‐
executive
 
Chair
Member
 
of
 
Audit
 
and
 
Risk
 
Committee
Appointed:
 
September
 
2016
6.
 
Willem
 
(Bill)
 
Roest
Independent,
 
non
‐
executive
 
Director
Chair
 
of
 
Audit
 
and
 
Risk
 
Committee
Appointed:
 
July
 
2014
From
 
left
 
to
 
right:
4.
 
Rhys
 
Jones
Independent,
 
non
‐
executive
 
Director
 
Member
 
of
 
People
 
and
 
Culture
 
Committee
Appointed:
 
April
 
2018
4

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Metroglass
 
is
 
focused
 
on
 
optimising
 
and
 
enhancing
 
its
 
internal
 
capability
 
to
 
execute
 
on
 
the
 
opportunities
 
ahead
5
1.
 
Delivering
 
market
 
leading
 
service
 
to
 
our
 
customers
2.
 
Developing
 
our
 
organizational
 
capabilities
3.
 
Maintaining
 
our
 
scale
 
position
 
via
 
product
 
and
 
channel
 
leadership
4.
 
Leveraging
 
our
 
scale
 
and
 
assets
 
to
 
deliver
 
lowest
 
total
 
delivered
 
cost
Metroglass’
 
purpose
 
is
 
to
 
be
 
a
 
customer
‐
dedicated
 
organisation
 
that
 
delivers
 
market
‐
differentiated
 
glass
 
products
 
and
 
glazing
 
services
Our
 
four
 
strategic
 
objectives:

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Delivering
 
market
 
leading
 
service
 
to
 
our
 
customers
6
1
Service
 
is
 
a
 
key
 
differentiator
 
for
 
our
 
customers
 
and
 
critical
 
to
 
their
 
success
 
and
 
profitability
The
 
New
 
Zealand
 
and
 
Australian
 
businesses
 
are
 
equipped
 
to
 
satisfy
 
anticipated
 
market
 
demands
 
over
 
the
 
next
 
24
 
months,
 
and
 
will
 
focus
 
on
 
processing
 
and
 
installation
 
efficiency,
 
productivity
 
and
 
reliability
Developing
 
our
 
organizational
 
capabilities
2
Improving
 
our
 
ability
 
to
 
execute
 
against
 
these
 
strategic
 
initiatives
 
is
 
critical
Following
 
a
 
number
 
of
 
years
 
of
 
rapid
 
growth,
 
a
 
greater
 
focus
 
will
 
be
 
placed
 
on
 
investing
 
in
 
our
 
people
 
and
 
their
 
capabilities
 
as
 
well
 
as
 
on
 
our
 
support
 
systems
44%
75%
36%
18%
FY18
 
Q4
FY19
 
YTD
Example:
 
Highbrook
 
DIFOT
 
%
Late
 
tail
 
(DIFOT
 
+
 
48
 
hours)
DIFOT
 
(avg.
 
of
 
48
‐
72
 
hrs
 
for
 
residential)
93%
80%

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Maintaining
 
our
 
scale
 
position
 
via
 
product
 
and
 
channel
 
leadership
7
3
Metroglass
 
has
 
grown
 
to
 
service
 
more
 
than
 
55%
 
of
 
the
 
NZ
 
flat
‐
glass
 
market.
 
Scale
 
is
 
an
 
important
 
advantage
 
in
 
this
 
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
 
in
 
‘NZ
 
first’
 
products
 
through
 
ongoing
 
market
 
research
 
and
 
innovation
We
 
will
 
maintain
 
our
 
multiple
 
channels
 
to
 
the
 
different
 
key
 
market
 
segments,
 
which
 
offer
 
varied
 
cycle
 
exposure
 
and
 
growth
 
opportunities
AGG
 
will
 
use
 
its
 
significant
 
new
 
double
 
glazing
 
capacity
 
and
 
improved
 
supply
 
chain
 
to
 
deliver
 
profitable
 
growth
 
in
 
the
 
South
 
East
 
Australian
 
market

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Leveraging
 
our
 
scale
 
and
 
assets
 
to
 
deliver
 
lowest
 
total
 
delivered
 
cost
8
4
A
 
persistent
 
focus
 
on
 
increasing
 
efficiency
 
and
 
automation
 
and
 
lowering
 
costs
 
is
 
essential
 
for
 
the
 
long
‐
term
 
sustainability
 
of
 
our
 
business,
 
and
 
to
 
enable
 
us
 
to
 
compete
 
successfully
 
against
 
imports
 
and
 
changing
 
industry
 
dynamics

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
What
 
do
 
FY19/FY20
 
look
 
like?
Dedication
 
to
 
excellent
 
customer
 
service
 
(but
 
not
 
being
 
all
 
things
 
to
 
all
 
people)
We
 
will
 
maintain
 
our
 
product
 
leadership
 
position,
 
with
 
a
 
broad
 
product
 
offering,
 
existing
 
routes
 
to
 
market,
 
and
 
our
 
current
 
geographic
 
spread
Deeply
 
embedded
 
best
 
practice
 
production
 
culture.
 
We
 
have
 
the
 
equipment
 
and
 
are
 
focussed
 
on
 
building
 
and
 
sustaining
 
excellent
 
people
 
across
 
the
 
business
Capital
 
management
 
discipline
 
will
 
generate
 
strong
 
cash
 
flows,
 
with
 
capital
 
spend
 
at
 
maintenance
 
levels,
 
inventory
 
being
  
optimised,
 
and
 
Group
 
debt
 
reducing
9

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Trading
 
update
 
and
 
outlook
 
for
 
FY19
FY19
 
year
 
to
 
date
 
trading:
•
New
 
Zealand
:
 
•
We
 
are
 
pleased
 
with
 
the
 
clear
 
improvements
 
made
 
in
 
increasing
 
‘people’
 
capabilities
 
and
 
in
 
delivering
 
sustained
 
improvements
 
in
 
service
 
levels
•
Despite
 
variable
 
market
 
conditions,
 
financial
 
performance
 
in
 
New
 
Zealand
 
is
 
on
‐
target
 
and
 
ahead
 
of
 
the
 
same
 
period
 
last
 
year
•
Australia
:
 
•
Unfortunately
 
Australia
 
is
 
not
 
in
 
the
 
same
 
position.
 
Our
 
recent
 
capital
 
investment
 
program,
 
related
 
equipment
 
commissioning
 
and
 
the
 
opening
 
of
 
the
 
new
 
Tasmanian
 
plant
 
highlighted
 
gaps
 
in
 
organisational
 
capability
•
A
 
refreshed
 
Australian
 
senior
 
leadership
 
team
 
is
 
now
 
in
 
place,
 
including
 
an
 
Acting
 
AGG
 
CEO
 
and
 
new
 
General
 
Managers
 
in
 
New
 
South
 
Wales
 
and
 
Victoria
•
We
 
continue
 
to
 
have
 
strong
 
belief
 
in
 
what
 
this
 
business
 
can
 
achieve
 
over
 
time.
 
Service
 
levels
 
are
 
now
 
improving
 
and
 
we’re
 
focussed
 
on
 
building
 
the
 
required
 
capabilities
 
to
 
achieve
 
better
 
returns,
 
however
 
as
 
we’ve
 
observed
 
in
 
New
 
Zealand
 
this
 
will
 
take
 
time
•
Group
:
 
Sales
 
in
 
line
 
with
 
last
 
year,
 
but
 
EBIT
 
is
 
behind
 
as
 
a
 
direct
 
result
 
of
 
the
 
Australian
 
results
FY19
 
Group
 
outlook
:
•
Currently
 
expect
 
Group
 
EBIT
 
to
 
be
 
at
 
the
 
lower
 
end
 
of
 
previously
 
provided
 
target
 
range
 
of
 
$30
 ‐
$33
 
million,
 
with
 
some
 
risk
 
around
 
our
 
Australian
 
results
 
as
 
noted
 
above
•
Further
 
update
 
will
 
be
 
provided
 
alongside
 
the
 
Company’s
 
half
 
year
 
results
 
in
 
November
10

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Simon
 
Mander
 
appointed
 
as
 
Metroglass’
 
new
 
CEO
11
Simon
 
will
 
join
 
Metroglass
 
in
 
January
 
2019
Experienced
 
and
 
inclusive
 
people
 
leader,
 
with
 
a
 
strong
 
track
 
record
 
in
 
both
 
New
 
Zealand
 
manufacturing
 
and
 
building
 
materials
Most
 
recent
 
role:
 
CEO
 
of
 
Tru
‐
Test
 
Corporation
 
Ltd,
 
a
 
world
 
leading
 
New
 
Zealand
 
based
 
ag
‐
tech
 
company
 
Has
 
also
 
held
 
senior
 
positions
 
with
 
Fletcher
 
Building,
 
DS
 
Smith,
 
Carter
 
Holt
 
Harvey,
 
Partners
 
in
 
Performance,
 
Lion
 
Nathan
 
and
 
McKinsey.
 
He
 
was
 
also
 
a
 
director
 
of
 
NZX
 
listed
 
Wellington
 
Drive
 
Technologies
 
for
 
9
 
years
 
Simon
 
has
 
a
 
trade
 
background
 
in
 
aircraft
 
engineering
 
and
 
holds
 
a
 
Bachelor
 
of
 
Engineering
 
(Mech)
 
from
 
Auckland
 
University
He
 
also
 
represented
 
New
 
Zealand
 
in
 
yachting
 
on
 
a
 
number
 
of
 
occasions
 
including
 
in
 
the
 
International
 
470
 
class
 
at
 
the
 
1988
 
Olympic
 
Games
 

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
2.
 
Chief
 
Financial
 
Officer’s
 
Address
12

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
13
1234
5
6
7
8

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
FY18:
 
Group
 
revenue
14
(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:
 
EBIT
 
summary
15
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
Operational
 
update
16
Delivering
 
market
 
leading
 
service
 
to
 
our
 
customers
NZ
 
customer
 
service
 
levels
 
in
 
Q1
 
FY19
 
have
 
been
 
the
 
highest Metroglass
 
has
 
delivered since
 
Q4
 
FY17
In
 
Australia,
 
the sales
 
and
 
production
 
recovery
 
has
 
been
 
slower
 
and
 
more
 
challenging
 
than
 
expected
 
following
 
the
 
completion
 
of
 
the
 
capital
 
installation
 
program
 
in
 
March.
 
Service
 
levels
 
have
 
improved
 
in
 
recent
 
weeks
 
and
 
the
 
focus
 
is
 
on
 
sustaining
 
these
Developing our
 
organisational
 
capabilities
Appointed
 
a
 
number
 
of
 
senior
 
regional
 
leaders
 
and
 
filled
 
a
 
number
 
of
 
critical
 
operational
 
vacancies
 
including
 
boosts
 
in
 
plant
 
supervision
Implemented
 
a
 
number
 
of
 
people focussed
 
programs
 
which
 
are
 
showing
 
positive
 
early
 
results
 
including
 
increased
 
morale
 
and
 
reduced
 
staff
 
turnover
Maintaining
 
our
 
scale
 
position
 
via
 
product
 
and
 
channel
 
leadership
Metroglass
 
maintained
 
total
 
NZ
 
glass
 
category
 
share
 
of
 
above
 
55%
 
in
 
H2
‐
18. However,
 
this
 
measure
 
fluctuates
 
based
 
on
 
glass
 
purchasing
 
levels
 
and
 
has
 
fallen
 
slightly year
 
to
 
date
 
as
 
the
 
Company
 
has
 
reduced inventory
Preparing
 
for the
 
FY19
 
launch
 
of
 
a
 
new
 
high
 
performance
 
double
 
glazed
 
unit
 
with
 
similar
 
performance
 
as
 
LowE
 
triple
 
glazed
 
units
Leveraging
 
our
 
scale
 
and
 
assets
 
to
 
deliver
 
lowest
 
total
 
delivered
 
cost
Factory
 
labour efficiency
 
tracking
 
to
 
expectation
 
in
 
NZ,
 
further
 
opportunities
 
remain
 
in
 
Australia

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
General
 
business
 
and
 
shareholder
 
questions
17

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
Ordinary
 
business
 
and
 
resolutions

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
To
 
consider
 
and,
 
if
 
thought
 
fit,
 
pass
 
the
 
following
 
ordinary
 
resolution:
Resolution
 
1:
 
That
 
the
 
Board
 
be
 
authorised
 
to
 
fix
 
the
 
fees
 
and
 
expenses
 
of
 
PwC
 
as
 
Auditor
 
for
 
the
 
ensuing
 
year.
Ordinary
 
business
 
and
 
resolutions
19

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
To
 
consider
 
and,
 
if
 
thought
 
fit,
 
pass
 
the
 
following
 
ordinary
 
resolution:
Resolution
 
2:
 
That
 
Gordon
 
Buswell,
 
who
 
retires
 
by
 
rotation
 
and
 
is
 
eligible
 
for
 
re
‐
election,
 
be
 
elected
 
as
 
a
 
Director
 
of
 
Metro
 
Performance
 
Glass
 
Limited.
Ordinary
 
business
 
and
 
resolutions
20

Strictly
 
confidential
 
and
 
not
 
for
 
public
 
release
To
 
consider
 
and,
 
if
 
thought
 
fit,
 
pass
 
the
 
following
 
ordinary
 
resolution:
Resolution
 
3:
 
That
 
Russell
 
Chenu,
 
who
 
retires
 
by
 
rotation
 
and
 
is
 
eligible
 
for
 
re
‐
election,
 
be
 
elected
 
as
 
a
 
Director
 
of
 
Metro
 
Performance
 
Glass
 
Limited.
Ordinary
 
business
 
and
 
resolutions
21