Metro Performance Glass 2020 Results

METRO PERFORMANCE GLASS



19 June 2020

Metro Performance Glass Limited (NZX: MPG, ASX: MPP) – full year results announcement
for the year ended 31 March 2020

Please find attached the financial information required by NZX Listing Rule 3.5 and 3.6 together with a copy of
Metro Glass’ full year results presentation and Annual Report for the year ended 31 March 2020.
Documents attached:
1. Market announcement in relation to the full year results
2. Full year results presentation
3. Metro Glass’ Annual Report including group financial statements for the year ended 31 March 2020
4. NZX Appendix 1
For the purposes of ASX Listing Rule 1.15.3, Metro Performance Glass Limited confirms that it continues to
comply with the listing rules of its home exchange, the NZX Main Board.

Yours sincerely

Andrew Paterson
Company Secretary
Metro Performance Glass Limited

---

NZX.MPG, ASX.MPP 19 June 2020
Metroglass announces its FY20 results
• Metroglass group delivered on its FY20 EBIT
1
guidance and net debt reduction target, despite the closure
of NZ operations towards the end of March due to COVID-19
• Strengthened group balance sheet with net debt reduced by $16.5m from strong operating cashflows
• Revenue declined 5% to $254.9m, with reduced exposure to large-scale commercial projects in NZ being
partially offset by revenue growth in Australia
• EBIT before significant items
2
of $23.2m, compared to $25.2m in FY19
• Australian Glass Group is on a positive trajectory, with an EBITDA
3
positive result in H2 FY20
• Statutory net profit after tax (NPAT) of $(77.9m) down from $5.0m in FY19; driven by an $86.5m
impairment of intangible assets due to the softer outlook for NZ construction

Metro Performance Glass (Metroglass) today reports financial results for the 12 months to 31 March 2020 (FY20) in
line with the EBIT
1
guidance and net debt reduction target provided in November 2019.
CEO Simon Mander said: “The group’s FY20 results reflect a solid result in challenging market conditions. In New
Zealand, we maintained consistent revenue in our key residential segment but had a decline in commercial glazing
revenue as we reduced our risk exposure on large scale projects. In Australia, we have begun to make clear progress
on our turnaround plan, growing revenues and delivering a positive EBITDA result for the second half.”
Group Revenue for the year to 31 March 2020 of $254.9m was 5% below last year, with New Zealand declining 7% and
Australia up 3%. EBIT before significant items fell 8% to $23.2m. As a result of an $86.5m impairment charge on New
Zealand goodwill, statutory NPAT declined to a $(77.9m) loss, from $5.0m in FY19. NPAT before significant items
4

declined to $10.9m, from $14.2m in FY19.
Net debt was reduced by $16.5m this year to $66.9m at 31 March 2020, through strong cash generation, focussed
capital expenditure and further reductions in working capital.
“We operate within a dynamic and competitive environment and our focus remains on providing a differentiated and
market leading customer experience. Our latest group-wide customer survey showed increasingly positive feedback
on the quality of our people and service, which is a testament to the hard work of our teams this year.”
New Zealand
Revenue in New Zealand declined 7% to $203.0m in FY20, which was principally driven by a 24% fall in commercial
glazing sales as the business began to focus on small-medium sized projects where the business has a strong track-
record and sees future opportunities. NZ EBIT fell 11% to $27.8m (inclusive of a $1.9m IFRS-16 benefit) with lower
revenue only partially offset by savings in factory and glazing costs.
The impacts of COVID-19 began to be felt towards the end of March and then had a dramatic effect on New Zealand
operations in April and early May. The business was able to continue paying all salaried and wage staff in full
throughout the shutdown period, supported by the Government’s wage subsidy.

Note: all non-Generally Accepted Accounting Principles (GAAP) financial measures are defined and reconciled to a GAAP measure in the 2020 Annual
Report, available here: https://www.metroglass.co.nz/investor-centre/annual-interim-reports/.
1
Earnings before interest and tax (EBIT), before significant items. This guidance was provided on a pre IFRS-16 basis.
2
EBIT before significant items, post IFRS-16. FY20 significant items at EBIT: $86.5m impairment of NZ goodwill, $4.6m of NSW restructuring costs.
FY19 significant item: $9.6m impairment of Australian intangible assets.
3
Earnings before interest, tax, depreciation and amortisation (EBITDA), before significant items (NSW restructure costs).
4
NPAT before significant items. FY20 significant items at NPAT also include a $0.9m positive tax adjustment relating to prior periods.

The negative repercussions on the New Zealand economy caused by the COVID-19 pandemic are expected to be
significant and result in lower construction activity for the coming 12 - 24 months. The glass processing and installation
industry also continues to be very competitive. Due to the current level of uncertainty, management have developed
and are planning for a number of potential future scenarios.
As a consequence of the forecasted significantly lower construction activity, and the increased competitive intensity,
a review of the carrying values of Metroglass’ assets resulted in an $86.5m impairment on New Zealand goodwill,
which initially arose from acquisitions completed in 2012 (pre-IPO). This non-cash charge has no impact on the
company’s bank covenants and is presented as a significant item in the FY20 financial statements.
Australian Glass Group (AGG)
Pleasingly, AGG continued to consistently deliver on its service-led value proposition throughout the year. AGG’s
revenue increased by 3% to $51.9m in FY20 (or +5% in Australian dollar terms) with further growth in the Tasmanian
business offsetting the structural changes made in New South Wales (NSW). This revenue growth was particularly
pleasing given the significant deterioration in the wider Australian construction activity.
Revised energy efficiency requirements for new commercial buildings were introduced in 2019 and has contributed to
increased demand for double glazing this year. AGG is well positioned to benefit from the anticipated roadmap of
future building code changes which will also increase the use of double glazing in residential dwellings.
In November 2019 Metroglass announced that the NSW operations would be reoriented to focus on supplying double-
glazed units. Local production of other products was scaled down and operating costs have been materially reduced.
AGG’s EBIT loss decreased by $1.2m to $(3.6m) this year. This financial performance remains below an acceptable
level and more work is still to be done, however the business is showing steady improvement and is on an encouraging
path. For the second half, AGG delivered an EBITDA positive result.
Cashflow and balance sheet
Metroglass further strengthened its financial position this year, reducing net debt by $16.5m to $66.9m. The Company
retained borrowing headroom of more than $50m at 31 March 2020.
As part of the company’s response to the COVID-19 environment, the company took the prudent step of agreeing with
its banks a relaxation of the key financial covenant, net debt to EBITDA, from 3.0x to 4.0x for all tests up to and including
31 March 2021. As part of this relief the Group agreed to provide regular updates to its banking partners and to limit
growth capital expenditure and pay no dividends in FY21. Constructive discussions are ongoing with regard to
providing for future requirements as the economic conditions in both New Zealand and Australia become clearer.
Market conditions and outlook
While the implications of the COVID-19 pandemic on construction activity in New Zealand and Australia are uncertain,
Metroglass expects a significant decline in economic activity for at least the next 12 to 24 months. The base case
estimate for 9 month lagged NZ residential consents is for a marginal fall in FY21 and a c. 20% decline in FY22, before
a c. 5% recovery in FY23. A 20% decline in detached residential housing starts in our key Australian markets in FY21
(non-lagged) is also expected, followed by a 9% recovery in FY22.
Building activity in NZ essentially ceased during the COVID-19 shutdown period and productivity was also impacted
under Alert Levels 3 and 2. This will impact on the traditional lag between residential housing consents and glass
demand, but this lag will provide Metroglass some opportunity to observe market conditions in the coming months
and refine its plans accordingly.
Mr Mander said: “We remain confident in our strategy and ability to respond to the changing conditions. Metroglass
will work hard to support our customers with excellent service and maintain our market-leading position in New
Zealand and growing position in Australia. We will continue to preserve cash, with a focus on critical capital
expenditure and effective and proactive management of costs. We have already made some progress on our operating

and overhead cost base in FY20 and have carried this focus into FY21 to ensure that the group is best positioned to
emerge from the effects of the pandemic successfully.”
The company will provide shareholders with an update on trading performance and current conditions at its Annual
Shareholders’ meeting on 21 August 2020.
/Ends





Full year results webcast and conference call details
Metro Performance Glass Limited will host a conference call today to review its FY20 results. The briefing is scheduled
to begin at 10am NZDT and can be joined by webcast or conference call.

You can listen to the webcast via the company’s website: http://www.metroglass.co.nz/investor-centre or directly:
https://globalmeet.webcasts.com/starthere.jsp?ei=1326394&tp_key=24ef8595fa. 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 after 2pm on the day.
To 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 when prompted, please quote the conference code: 462705.
New Zealand Toll Free 0800 423 972 International +64 (0)9 913 3624
Australia Toll Free 1 800 590 693 United States/Canada 866-519-2796
Australia (Melbourne) +61 (0)3 8317 0929 United Kingdom Toll Free 0800 358 6374
Australia (Sydney) +61 (0)2 9193 3719

For further information, please contact:
Andrew Paterson
Investor Relations
(+64) 027 403 4323
Andrew.Paterson@metroglass.co.nz


Authorised by the Metroglass Board.

---

FY20 Results Presentation
19 June 2020
Metro Performance Glass

2
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 lookingstatements about Metro Performance Glass and the environment in which the company operates.
Forward looking statements can generally be identified by the use of forward lookingwords 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 analystspresentations 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 adviceor a securities
recommendation, anddoes 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 ofindependent 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 ofthe 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.
Disclaimer

Introduction to the FY20 year
Strong operating cashflows, targeted capital expenditure and cost
management supported a strengthened group balance sheet, with
net debt reducing by $16.5m, to $66.9 million.
In New Zealand the strength in our customer relationships
supported stable performance in our key window manufacturer
segment, as we reduced our exposure to large-scale commercial
glazing projects.
Australian Glass Group began to deliver on its turnaround plan
despite significant declines in market activity –achieving revenue
growth, sustained strong operating performance, and an EBITDA
positive result for the second half.
3

Group revenue of $254.9m declined 5% vs. FY19 and Group EBIT
1
of $23.2m
declined 8%, with a reduction in large-scale commercial project exposures in
NZ being offset to a degree by revenue growth in Australia
NZ revenue of $203.0m (-7%) and EBIT
1
of $27.8m (-11%), primarily driven by
a 24% reduction in commercial glazing revenues. Residential revenues were
broadly inline with last year
Australian revenue of $51.9m (+5% in $A) in a declining market, EBIT
1
loss of
$3.6m improved by $1.2m vs. FY19, supported by profitable growth in our
double-glazing segment
Net debt declined $16.5m year on year to $66.9m, supported by strong
operating cashflows. Held borrowing headroom of more than $50m at year
end and agreed financial covenant relief for FY21
Statutory Net Profit After Tax of $(77.9m) compared to $5.0m in FY19,
impacted by an $86.5m impairment of intangible assetsresulting from
significant changes in the outlook for our sector of the construction industry
4
1
2
3
4
Overview of FY20 financial results
5
Note: The definitions for all non-GAAP measures of financial performance are provided on slide 18 of this release.
1
Earnings before interest and tax, before significant items, post IFRS-16. FY20 significant items at EBIT: $86.5m impairment of NZ goodwill,
$4.6m of NSW restructuring costs. FY19 significant item: $9.6m impairment of Australian intangible assets.

Our goals
Deliver market leading customer service
Develop our organisationalcapabilities
Uphold scale & strength through product and channel leadership
Leverage that scale to deliver solutions efficiently
5

•Positive feedback received in recent
customer survey
1
with NZ rated
7.5/10 and AGG rated 8.0/10
•Strengthened relationships with key
customers in NZ and delivered a 30%
reduction in external rework
alongside stable DIFOT
•Successfully reset service
performance in Australia, with DIFOT
improving by 8% and external rework
down by 18%
•AGG piloted and launched AGG
Connect™, a digital platform enabling
an improved customer experience
•Continued focus on instilling a
strong culture of safety and
wellbeing. Reducing incidents
remains a top priority
•Now supporting 70+ apprentices
on their journey towards gaining a
professional qualification
•Launched a learning management
system to enable our employees to
develop and transfer skills and
capabilities across the company
•Our latest employee survey
showed a 19% increase in the
percentage of engaged employees
•AGG delivered revenue growth
supported by focused efforts to
build a leading double glazing
offering in South East Australia
•Introduced improved technical
specification process for generic
balustrades and pool fencing –
significantly reducing lead-times
for customers
•Launched market-leading LowE
‘Extreme’ double glazing which
offers similar performance to
some triple glazing products
•Ramped up inter-region product
distribution ensuring that we can
continue to meet customer
demands across our markets
•Reshaped our commercial glazing
business in NZ to more efficiently
execute the small to medium
projects within our pipeline
•Restructured the New South Wales
business to clearly focus it on the
growing double glazing segment
•Restructured our Christchurch
operations to improve South Island
profitability and simplified shift
structures in the Highbrook plant
post Alert Level 4 shutdown
1
Question: “On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?”
Deliver market leading
customer service
Develop our organisational
capabilities
Uphold scale & strength
through product & channel
leadership
Leverage scale to deliver
solutions efficiently
6

2.0
2.0
2.1
4.6
5.2
5.0
FY18FY19FY20
South IslandNorth Island
•9 month lagged residential
consents in FY20 rose by
+5.9%, or +1.2% on a floor
area (sqm) basis
•Detached dwelling
consents +1.2%, or -2.5%
on a floor area basis
•Multi-residential +14.4%,
or +13.7% on a floor area
basis
Total NZ residential consents (9 month lagged, by number)
NZ non-residential consents (by value $bn)
2
•The value of
non-residential consents in
FY20 was flat on the prior
year
•North Island -3.3%
•South Island +7.0%
7.1
+7.9%
+5.9%
(0.4%)
+7.6%
1.Source: Statistics NZ, rolling month residential dwelling consents. Detached hosing consents lagged by 9 months, multi-residential consents lagged by 12 months.
2.Source: Statistics NZ, value of non-residential consents (new plus altered). No lag applied.
3.Source: Statistics NZ, rolling 12-month importation of selected tariff codes of flat glass.
NZ market: residential dwelling consent issuance continued to grow in
FY20, but actual activity levels remained broadly in line with last year
7.2
6.6
FY18FY19FY20
Volume of flat glass imported into NZ (non-lagged, million square metres)
3
•All architectural glass is
sourced internationally
and imported into NZ
•The total volume of flat
glass imported in FY20
declined by 7% after a
large increase in FY19
7.5
6.4
+19.0%
7.0
(6.7%)
21,090
21,176
21,438
9,363
11,684
13,366
FY18FY19FY20
Detached dwellingsMulti-residential
30,453
32,860
34,804
7

•Metroglass operates in an increasingly competitive market and is
committed to providing a differentiated and market-leading
customer experience.
•Customer feedback is increasingly reflecting our efforts to deliver
strong service performance, with consistent DIFOT in FY20
combined with a 30% reduction in quality issues
1
.
•Commercial glazing sales declined 24% in FY20 as we transitioned
our forward book of work towards small to medium sized projects.
•Continuing to adapt and align the business to current conditions as
required, with structure changes made in our commercial glazing
and Christchurch operations during FY20, and a simplified shift
structure rolled out at the Highbrook plant post the Alert Level 4
shutdown.
•Furthered several people related initiatives including the ramping
up of our commitment to supporting our people to complete
apprenticeships (now with 70+).
New Zealand’s focus on
enriching the customer
relationship continues to
support our market
leading position.
Revenue
$203.0m (7%)
EBIT
2
$27.8m(11%)
1
As measured by the percentage of external reworks.
2
Before significant items.
8

2.7
2.8
2.8
2.7
2.7
2.6
FY18FY19FY20
VICNSWACTTAS
5.7
5.7
5.6
2.7
2.8
2.8
2.7
2.7
2.6
FY18FY19FY20
VICNSWACTTAS
68,182
73,705
66,050
(10.4%)
+8.1%
South east Australia house approvals (6mth lagged, by number)
1
South east Australia alterations & additions (by value A$bn)
2
•6 month lagged new house approvals in south east
Australia declined by 10.4% in FY20
•Victoria -9.8%, NSW -13.0%, ACT -9.1% Tasmania +9.4%
•The value of alterations and additions declined by -2.1% in FY20
•Victoria -0.3%, NSW -2.7%, ACT -2.1%, TAS -36.9%
Australian market: residential construction activity declined across
our key states, offset by increased use of double glazing
1.Source: Australian Bureau of Statistics, number of residential dwelling approvals (12 months to 31 March 2020) with a 6-month lag applied
2.Source: Australian Bureau of Statistics, value of alterations and additions (12 months to 31 March 2020). No lag applied.
+0.2%
(2.1%)
Counter to the declines on overall construction activity over the past 12 months, we’re continuing to see
increased use of double glazing, supported by increasing energy efficiency requirements for buildings.
9

AGG is building a
focused glass processing
business across south-
eastern Australia,
providing double glazing
and high performance
glass, with exceptional
customer service.
Revenue
$51.9m+3%
EBIT
1
($3.6m)+25%
•Australian Glass Group (AGG) is on positive trajectory,
achieving revenue growth despite soft market conditions
and an EBITDA
1
positive result for the second half of FY20.
•AGG’s clear strategy and marketing is showing good results
with an 11% increase in double glazing sales in FY20.
•Strong operational performance sustained, with DIFOT
improving 8% and quality issues reduced by 18%, reinforced
by further positive feedback in our latest customer survey.
•Completed the restructure of our New South Wales business
as announced in November 2019 to focus on double glazing.
We continue to anticipate growth in this segment over the
medium term, supported by changes in the National Building
Code anticipated to come into effect over calendar years
2022 and 2023.
10
1
Before significant items.

143.1
52.5
21.8
50.4
267.8
141.6
40.1
21.3
51.9
254.9
Residential NZCommercial Glazing NZRetrofit NZAustralian Glass GroupTotal group revenue
FY19FY20
FY20: Metroglass Group revenue (NZ$m)
Note:TheallocationofsalesbetweenresidentialandcommercialapplicationsisdifficultasMetroglassdoesn’talwaysknowtheenduseofapieceofglass.Thecategorisationmethodologyis
consistentacrossperiods,howeverCommercialGlazingrevenuewillincludesomelevelofresidentialglazingsalesandservices.
(7%) NZ
(1%)(24%)(2%)
(5%)
3%
11
(+5% in A$)

FY20: Financial results summary
1.Unlessotherwisestated,financialresultsareinclusiveofimpactsfromthenewleaseaccountingstandard(NZIFRS-16).Furtherdetailsareprovidedinnote7tothefinancialstatements.
2.Thedefinitionsforallnon-GAAPmeasuresoffinancialperformanceareprovidedonslide18ofthisrelease.
3.Thefullsegmentnoteisavailableinnote2oftheinterimfinancialstatements.
Segment results
NZ$m
3
FY20
Post IFRS 16
FY19
Pre IFRS 16
% change
FY20
Pre IFRS 16
New Zealand
Revenue
203.0217.4(7%)203.0
Gross profit %51.6%50.7%
SegmentalEBIT27.831.1(11%)25.9
Australia
Revenue
51.950.43%51.9
Gross profit %21.4%21.9%
Segmental EBIT(3.6)(4.8)25%(3.6)
Group results
NZ$m
1
FY20
Post IFRS 16
FY19
Pre IFRS 16
%
change
FY20
Pre IFRS 16
Revenue254.9267.8(5%)254.9
EBITDA before significant items
1,2
44.8 39.7 13%36.2
Depreciation & amortisation21.7 14.5 50%15.0
EBIT before significant items
1,2
23.2 25.2 (8%)21.2
Profit for the year before
significant items
2
10.9 14.2 (23%)11.9
Significant items(88.8)(9.2)(88.5)
Profit for the year(77.9)5.0 (76.6)
Basic EPS (cents)(42.0)2.7
Total dividend (cps)-3.8
12

EBIT bridge: FY19 to FY20 ($m)
New Zealand
Australia
13
New Zealand
Australia
25.2
21.2
23.2
7.2
2.7
1.1
0.4
1.4
1.0
1.3
0.1
1.9
FY19 EBIT
Underlying NZ gross profit
resulting from revenue decline
Factory and Glazing cost savings
NZ depreciation and amortisation
NZ other
Tasmania growth
New South Wales cost savings
Victorian sales mix
Other AGG costs
FY20 EBIT pre-IFRS-16
NZ IFRS-16 lease changes
FY20 EBIT post-IFRS-16

FY20: Group summary cash flow & balance sheet
•The group achieved reductions in working capital for the second
successive year through close management of trade debtors and
inventory
•Net operating cash flows increased this year, though the +31%
increase was primarily a result of IFRS-16 changes
•At 31 March 2020, the ratio of net debt to EBITDA was 1.9 times
(pre IFRS-16 basis). Reported net debt decreased by $16.5m year
on year. Group gearing
2
increased from 34.7% at 31 March 2019
to 46.5% at 31 March 2020 as a result of IFRS-16 changes
•Right-of-use assets and lease liabilities are now shown on the
balance sheet following the adoption of IFRS 16
Notes:
1.Networkingcapital:trade&otherreceivables+inventory-trade&otherpayables.
2.Gearing:netinterestbearingdebt/(netinterestbearingdebt+equity).
Key balance sheet items
(NZ$m)
FY20
Post IFRS 16
FY19
Pre IFRS 16
FY20
Pre IFRS 16
Net working capital
1
30.432.530.4
Property plant & equipment
59.664.659.6
Total assets
258.0286.8205.7
Right of use assets
50.4n/an/a
Lease liabilities
59.5n/an/a
Net debt
66.983.366.9
Total shareholders equity
76.8157.084.6
Keycash flow items
(NZ$m)
FY20
Post IFRS 16
FY19
Pre IFRS 16
FY20
Pre IFRS 16
EBIT pre significant items
23.225.221.2
Operating cash flows
30.823.624.4
Capital expenditure
8.77.88.7
Dividends paid
-7.0-
14

•An impairment review is undertaken at least every 12 months. As a result
of this year’s review, the Directors have resolved to impair the carrying
value of NZ goodwill by $86.5m as at 31 March 2020
•This goodwill balance arose from historical transactions before the
company’s IPO in 2014
•This is an accounting charge only with no change to cash flows and no
impact on bank covenants
•The result of this impairment is that the carrying value of net assets from
$0.85 per share as at 31 March 2019 to $0.41 per share as at 31 March
2020
•Further information on this testing and the underlying scenarios is
provided in note 4.2 to the financial statements
Impairment of intangible
assets in New Zealand.
For the year ended 31 March 2020
•As a consequence ofthe forecast
declines in construction activity post
COVID-19, and increased competitive
intensity, the carrying values of assets
were reviewed.
•The review was conducted using a set
of conservative, probability weighted
future scenarios.
15
Intangible assets (NZ$m)Goodwill on acquisitions
Opening balance –1 April 2019
140.0
Impairment of New Zealand goodwill
(86.5)
Foreign exchange impact
(0.4)
Closing balance –31 March 2020
53.1

Looking forward, Metroglass will closely monitor market activity levels and
reposition itself appropriately to reflect the changing conditions
The extent and prolonged nature of the anticipated declines in building activity
are highly uncertain
•As a result of COVID-19 we now expect building activity to decline in the
coming months and remain at lower levels for an extended period
•Our base case estimate for 9 month lagged NZ residential consents is that
they will decline marginally in FY21 before declining by c. 20% in FY22, and
then recovering by c. 5% in FY23
•Building activity in NZ essentially ceased during the COVID-19 shutdown
period and productivity was also impacted under Alert Levels 3 and 2. This
will impact on the traditional lag between residential housing consents and
glass demand, but this lag will provide Metroglass some opportunity to
observe market conditions in the coming months and refine our plans
accordingly
•While detached residential housing starts in Australia had begun to stabilise
and showed an improving trend at the start of 2020, we now expect a 20%
decline in our key states in FY21 (non-lagged), followed by a 9% recovery in
FY22
16

Metroglass will continue to reposition itself appropriately to reflect the
changing conditions
Remain confident in our strategy and ability to adapt as required
•In the coming year, we will work hard to support our
customers with excellent service and maintain our market-
leading position in New Zealand and growing position in
Australia
•We will continue to preserve cash, with a focus on critical
capital expenditure and proactive management of costs
•We’ve already made some progress on our operating and
overhead cost base during FY20 and have carried this focus
into FY21
17

Appendix: Reconciliation of non-GAAP to GAAP profit measures
Non-GAAP financial information
•Group results are reported under NZ IFRS. This presentation includes non-
GAAP financial measures which are not prepared in accordance with NZ
IFRS, being:
•EBITDA: Earnings before interest, tax, depreciation and amortisation
•Segmental EBIT: Earnings before interest and tax (EBIT) for either the
New Zealand or Australia segment of the Group
•EBIT pre-IFRS 16: Earnings before interest and tax (EBIT) adjusted to
remove the impact of changes from NZ IFRS 16 (lease accounting
standard)
•NPAT pre-IFRS 16: Profit for the year (NPAT) adjusted to remove the
impact of changes from NZ IFRS 16 (lease accounting standard)
•We believe that these non-GAAP financial measures provide useful
information to readers to assist in the understanding of our financial
performance, financial position or returns, but that they 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
Full year to 31 March 2020
FY20FY19
($M)($M)
Profit for the year before significant items10.9 14.2
Add: Tax adjustments relating to prior periods0.9 -
Less: NSW restructure costs(3.2)-
Less: Impairment of intangible assets(86.5)(9.2)
Profit for the year (GAAP)(77.9)5.0
Add: taxation expense2.3 5.5
Add: net finance expense7.0 5.1
Earnings before interest and tax (EBIT) (GAAP)(67.9)15.7
Add: depreciation & amortisation21.714.5
EBITDA(46.2)30.1
EBIT (GAAP)(67.9)15.7
Add: NSW restructure costs4.6 -
Add: Impairment of intangible assets86.5 9.6
EBIT before significant items23.2 25.2
EBITDA(54.0)30.1
Add: NSW restructure costs4.6 -
Add: Impairment of intangible assets86.5 9.6
EBITDA before significant items37.1 39.7
Profit for the year (GAAP)(77.9)5.0
Add back: amortisation of acquisition-related
intangibles and its associated tax effect
1.4 1.7
NPATA(76.4)6.7
18

Appendix: FY20 half on half performance
19
1
Before significant items.
Segment results
(NZ$m)
Under IFRS 16Under IFRS 16Under IFRS 16Under IFRS 16Pre IFRS 16Pre IFRS 16
2H201H202H191H192H201H20
New Zealand
Commercial17.322.828.324.217.322.8
Residential66.674.966.576.766.674.9
Retrofit9.511.89.712.29.511.8
Total revenue93.4109.6104.4113.093.4109.6
Gross profit %50.1%52.9%50.4%51.0%49.0%52.1%
Segmental EBIT
1
10.617.214.117.09.616.3
Australia
Revenue24.827.122.927.524.827.1
Gross profit %21.3%21.5%16.0%26.9%21.2%22.3%
Segmental EBIT
1
(1.33)(2.3)(3.44)(1.3)(1.4)(2.2)

Contact information
Metro Performance Glass Limited
5 Lady Fisher Place, East Tamaki
Auckland 2013, New Zealand
Ph: (+64) 09 927 3000
www.metroglass.co.nz/
Simon Mander –Chief Executive Officer
Simon.Mander@metroglass.co.nz
(+64) 029 636 2661
Brent Mealings–Chief Financial Officer
Brent.Mealings@metroglass.co.nz
(+64) 021 240 6463
Andrew Paterson –Investor Relations
andrew.paterson@metroglass.co.nz
(+64) 027 403 4323
20

---

ANNUAL
REPORT
2020

This report is dated
19 June 2020 and is
signed on behalf of
the Board of Metro
Performance Glass Limited
by Peter Griffiths, Chair,
and Bill Roest, Director.
Peter Griffiths
Chairman
Willem (Bill) Roest
Director
The Metroglass group delivered on its
2020 EBIT guidance and net debt reduction
target set in November 2019 – despite the
closure of New Zealand operations towards
the end of March due to COVID-19.
The strength of our customer
relationships in New Zealand supported
stable performance in the competitive
window manufacturer segment, as we
reduced our exposure to large-scale
commercial glazing projects.
Australian Glass Group began to deliver
on its turnaround plan despite significant
declines in market activity – achieving
revenue growth, sustained strong
operating performance, and an EBITDA
1

positive result for the second half.
The group continued to strengthen its
financial position this year through strong
operating cash flows, efficient use of
capital expenditure, and cost management.
Net debt has been reduced by 29% or
$27.4 million to $66.9 million over the past
two years putting the group in a stronger
position to weather anticipated declines
in economic and building activity. Financial
covenant relief has also been agreed for
the 2021 financial year.
Chair and Chief Executive’s Review .........................................2
Management Review ...................................................................8
Our Strategy at a Glance .......................................................12
Board of Directors .....................................................................14
Senior Leadership Team ..........................................................16
Financial Statements ...............................................................19
Notes to the Financial Statements ....................................25
Independent Auditor’s Report ..............................................63
Corporate Governance ............................................................70
Remuneration Report ..............................................................78
Statutory Information .............................................................82
Company Directory ...................................................................88
1. Earnings before interest, tax, depreciation and amortisation;
before significant items.

Metro Performance Glass’ (Metroglass) focus
on strengthening key customer relationships
has continued to support our financial
performance this year, particularly in the face
of challenging market dynamics. Metroglass
New Zealand reinforced its market leadership
in a competitive market, while Australian
Glass Group (AGG) continued to deliver on
its turnaround plan, growing revenue and
achieving an EBITDA
1
positive result in the
second half of the year.
The group has continued to
focus on strengthening its
financial position through
the generation of operating
cash flows, efficient use of
capital expenditure, and cost
management to reduce its
net debt by 29% or $27.4
million to $66.9 million over
the past two years. We’ve
also agreed relaxed financial
covenants with our banking
partners for the 2021
financial year, and these
combined efforts have put
the group in a stronger
position to weather the
declines in economic and
building activity which likely
lie ahead.
We operate in a dynamic and
competitive environment.
Despite the added
uncertainty caused by
the pandemic, Metroglass’
board and management
team remain confident in
the group’s strategy of
1. Earnings before interest, tax, depreciation and amortisation,
before significant items.
Peter Griffiths
CHAIRMAN
Simon Mander
CEO
CHAIR AND CHIEF
EXECUTIVE’S REVIEW
The impacts of COVID-19
were increasingly felt
towards the end of March
and had a dramatic effect on
operations in New Zealand
post the company’s financial
year end of 31 March 2020
(FY20). We discuss the
impacts of COVID-19 and
our response on page 3.
Metro Performance Glass
is a leading provider of
glass processing and glazing
solutions in Australasia, with
a team of over 1,150 people
committed to delivering
exceptional products and
services for our customers.
We are pleased to report
that the Metroglass
group delivered on the
FY20 EBIT guidance and
net debt reduction target
set in November 2019,
despite losing a week of
New Zealand operations
at the end of March due
to the COVID-19 shutdown.
METRO PERFORMANCE GLASS LIMITED
2



ANNUAL REPORT 2020

We moved swiftly and
safely to appropriately
scale down and close all
glass processing and
installation, and immediately
implemented alternative
working arrangements
where possible to keep the
business moving forward.
We elected to continue
paying all salaried and waged
staff in full throughout the
shutdown period, which we
considered vital to limit the
stress and anxiety our
employees and their families
felt during this highly
uncertain period. The
company qualified for and
received the wage subsidy
from the New Zealand
Government for 926
employees, totalling
$6.5 million.
Our people maintained
a high level of connection
with customers during the
shutdown period, supporting
them with essential glazing
services, cash-flow planning,
COVID-19-related safety
protocols, and ensuring
they were informed of
relevant government
subsidies and support.
All Metroglass processing
and installation operations
resumed, with health and
safety and physical distancing
protocols in place, at
COVID-19 Alert Level 3 on
28 April. Thanks to the
significant preparation
work completed during the
lockdown, our teams were
able to restart and ramp-up
production to pre-COVID-19
levels within one week.
Australian Glass Group
(AGG) has not faced material
disruption from COVID-19
restrictions to date. In line
with New Zealand’s
operations and Australian
Government directives,
the company introduced
health and safety and
physical distancing
protocols to ensure the
safety of its workforce.
COVID-19 has had near-term
impacts on group operations
and financial performance
and is expected to
contribute to a material
decline in New Zealand and
Australian economic activity
for at least the next 12 to
24 months. Several actions
have been taken to preserve
the cash position of the
company during this time,
including cost control
measures, the seeking
of rent relief and the
cancellation or deferral
of all non-essential
capital expenditure.
Metroglass further
strengthened its financial
position this year and
retained borrowing
headroom of more than
$50 million at 31 March 2020.
The company took the
prudent step of agreeing
a relaxation of Metroglass’
key financial covenant: net
debt to EBITDA from 3.0x
to 4.0x for all tests up to
and including 31 March 2021.
The company and its banking
partners are continuing
to engage in constructive
discussions to provide for
future requirements.
The board and management
team continue to evolve a
series of forward-looking
scenarios and strategic
plans to enable the group
to rapidly respond to
changes in market
conditions. The extent and
prolonged nature of the
anticipated declines in
building activity are
uncertain and these
scenarios will continue to
change as the future path
of the economy becomes
clearer. Metroglass is
focused on retaining our
market leadership position
and emerging from this
challenges in as strong
a position as possible.
COVID-19 EXCERPT
On 25 March 2020, Metro Performance Glass (Metroglass)
significantly scaled down or closed its operations across New Zealand
in response to the Government’s move to COVID-19 Alert Level 4. The
Group noted its support for the steps being taken by the New Zealand
Government to manage and mitigate the effects of the pandemic.
providing the best customer
service, developing its people,
and leveraging its scale to
efficiently deliver leading
glass solutions.
A range of initiatives are
being advanced to ensure
we remain focused on our
key customers, are resilient
across a range of market
conditions, and are well
positioned to take advantage
of future opportunities.
During the 2020 financial
year, we made several
changes to our organisational
structure, our shift patterns,
maintenance practices and
raw material supply chains.
We have also continued to
develop our people and
expand our apprenticeship
programme, and we invested
in factory equipment to
improve performance and
reduce our safety risks.
In November 2019,
Metroglass announced that
AGG’s New South Wales
(NSW) business would be
reoriented to focus on the
production of double-glazed
units. This restructure
resulted in significant
reductions in operating
costs and helped to position
the business for future
growth in line with supportive
changes in the National
Building Code anticipated
to come into effect in
calendar years 2022
and 2023.
AGG is now on a positive
track and has executed well
against its turnaround plan
in the second half of the year.
3

Despite a softening market,
AGG achieved revenue
growth and delivered a
positive EBITDA result for
the second half of the year.
REVENUE AND EARNINGS
PERFORMANCE
Group revenue of $254.9
million was 5% below
last year’s result, with
New Zealand revenue
declining 7% to $203.0 million
and Australian revenue
growing 3% to $51.9 million.
Group EBIT
2
declined 8%
in FY20 to $23.2 million,
before significant items
3

but inclusive of the
impacts from adopting
the IFRS-16 lease
accounting standard.
In New Zealand, Metroglass’
EBIT before significant items
fell 11% from $31.1 million to
$27.8 million, with the reduced
contribution from commercial
glazing more than offsetting
the $1.9 million net benefit
from adopting the new IFRS-
16 lease accounting standard.
AGG’s annual EBIT loss,
before significant items,
decreased by $1.2 million
to $(3.6) million this year,
facilitated by strong growth
in Tasmania and cost
reductions in NSW. This
financial performance
remains below an acceptable
level and more work is still
to be done, however the
business is showing steady
improvement and is on an
encouraging path.
The negative repercussions
on the New Zealand economy
caused by the COVID-19
pandemic are expected to
be significant and result in
lower construction activity
for the coming 12 - 24
months. Glass processing
and installation continue
to be very competitive.
The currently heightened
level of uncertainty has
made accurate forecasting
particularly challenging,
which we discuss further in
the outlook section below.
The carrying values of
the company’s intangible
assets were reviewed in this
context, which resulted in
an $86.5 million impairment
to New Zealand goodwill,
which initially arose from
acquisitions completed in
2012 (pre-IPO). This non-
cash charge has no impact
on the company’s bank
covenants and is presented
as a significant item in the
FY20 financial statements.
Principally as a result of the
New Zealand impairment
charge, we have reported
a statutory Net Loss After
Tax of $(77.9) million in FY20,
down from a Net Profit
After Tax (NPAT) of $5.0
million in FY19. NPAT before
significant items
3
declined
to $10.9 million from $14.2
million in the prior year.
NEW ZEALAND – ENRICHING
THE CUSTOMER RELATIONSHIP
Metroglass continues to
operate in an increasingly
competitive market and is
committed to providing a
differentiated and market-
leading customer experience.
This year we have focused
on defending our market
position, diversifying
our risk exposures and
strengthening relationships
with our key customers.
Despite the number of
building consents increasing
over the past year, in our view
supply constraints across
the broader construction
industry have restricted the
level of actual construction,
with activity in our core
residential segment remaining
broadly in line with last year.
All architectural glass used
in New Zealand construction
is imported and the total
volume of glass imports
declined by 7% over the
past 12 months
4
.
Metroglass’ key service
performance measures
remained strong throughout
the year, with a 30%
reduction in the rate
of external rework and
delivery-on-time-in-full
(DIFOT) and late-tail-DIFOT
performance continuing
in line with last year.
During the year, the company
implemented improvements
in customer communications
and tailored service offerings
to meet the needs of its key
customers. Pleasingly, our
second New Zealand-wide
customer survey conducted
in November 2019 achieved
CHAIR AND CHIEF EXECUTIVE’S REVIEW CONTINUED
CHAIR AND CHIEF EXECUTIVE’S REVIEW CONTINUED
2. Earnings before interest and tax, before significant items.
3. FY20 significant items: $86.5m impairment of New Zealand goodwill, $4.6m of NSW
restructure costs and $0.9m of positive tax adjustments relating to prior periods.
FY19 significant item: $9.6 million impairment of Australian intangible assets.
4. Source: Statistics New Zealand, 12 months ended 31 March 2020.
1. Earn.EiaE1gsb.refgoorft1t .,
4



ANNUAL REPORT 2020

7.5/10 (June 2019: 7.3/10),
further validating our
progress in fostering these
relationships. The quality of
these relationships continues
to be critical in a very
competitive industry.
Our people are the key
that unlocks our customer
relationships and our value
proposition. Through
improved communications,
training and support
initiatives, we have seen
positive improvements in
the engagement and
feedback from our teams.
In our FY20 employee
engagement survey, we
recorded an increase of
19% in the number of
actively engaged staff.
Learning and development
are very important parts
of Metroglass’ operations,
and during FY20 we launched
a learning management
system which has enabled
our employees to develop and
transfer skills and capabilities
across the company.
Our focus on upskilling
the next generation of the
Metroglass workforce has
seen us more than double
our apprentice numbers this
year, with over 70 employees
now on the journey towards
gaining a professional
qualification. We have also
bolstered the tools,
frameworks and training
we provide our people
leaders, allowing them to
improve the development and
performance of their teams.
The safety and wellbeing
of our people is always at
the centre of our people
initiatives. Our safety
During the year the
company implemented
improvements in customer
communications and
tailored service offerings
to meet the needs of our
key customers.
statistics show we still
need to improve in this
area, with the number of
incidents remaining at a
similar level to the prior two
years. The company’s safety
programme and systems
are evolving and maturing,
and we are continuing to
put considerable effort into
supporting our teams with
improved safety equipment,
refreshed policies, practices
and training. During the year,
we installed a significant
number of additional
lifting cranes in our plants
which has meaningfully
reduced the need for
manual lifting of heavy
products going forward.
AUSTRALIAN GLASS GROUP
– STRENGTHENING OUR
MARKET POSITION
AGG is building a focused
glass processing business
across south-eastern
Australia, providing high
performance glass and
double glazing, with
exceptional customer service.
Pleasingly, AGG’s revenue
grew (in Australian dollar
terms) by 5% this year,
despite Australian residential
starts falling 13% in calendar
year 2019.
In November 2019 we
announced that our NSW
operations would be
reoriented to focus on
supplying double-glazed
units. Local production of
other glass products was
significantly scaled down, the
physical production footprint
has been condensed from
four buildings to two, and
operating costs have
materially reduced.
5

NSW represents a meaningful
long-term growth opportunity,
as the state has a very low,
but increasing, penetration
of double glazing in windows
and doors. A set of supportive
legislative changes in the
National Building Code is
anticipated to come into
effect in calendar years 2022
and 2023. These changes will
require new residential
buildings to be constructed
to an increased energy-
efficiency rating, which can
readily be achieved with double
glazing. This requirement
was introduced for new
commercial buildings in
2019 and the subsequent
increased usage and
interest in double glazing
has been significant.
Tasmanian operations have
continued to deliver further
growth in revenue and
market share since starting
in early 2018, and AGG
Victoria maintains a strong
position within a highly
competitive market.
AGG has maintained its
operational performance
with DIFOT improving 8%
and external rework declining
18% during FY20. Our second
Australian customer survey,
conducted in November 2019,
saw AGG maintain its strong
rating of 8.0/10 (8.0/10 in
July 2019); this validates the
improvements in its service
offering to customers.
Our Australian team has
delivered well against its
turnaround plan over the
past six months. The board
and management team are
appreciative and proud
of their commitment
and results.
CAPITAL MANAGEMENT
Metroglass reduced net
debt by $16.5 million this
year, to $66.9 million as
at 31 March 2020. This
was supported by strong
operational cash flow,
focused capital expenditure
across the group, and
further reductions in
working capital.
Capital expenditure was
managed conservatively with
$8.7 million being invested in
key safety equipment, core
information systems, as well
as by enhancing our digital
printing capability and other
operational capability.
Before the significant
impacts from the COVID-19
pandemic became clear,
the board had expected to
reach the leverage target
of 1.5x net debt to EBITDA
(pre IFRS-16) during the
2021 financial year. As
at 31 March 2020 this
ratio was 1.9x. We remain
committed to the 1.5x
leverage target, ensuring
the strength and stability
of the company’s financial
position and will continue
to prioritise debt reduction.
As at 31 March 2020,
Metroglass retained
borrowing headroom of
more than $50 million.
The company’s banking
partners have agreed to
relax Metroglass’ key
financial covenant: net
debt to EBITDA from 3.0x
to 4.0x for all tests up to
and including 31 March 2021,
and we are continuing to
engage in constructive
discussions to provide
for future requirements.
CHAIR AND CHIEF EXECUTIVE’S REVIEW CONTINUED
Capital expenditure was
managed conservatively with
$8.7 million being invested
in key safety equipment and
core information systems,
and operational capability.
METRO PERFORMANCE GLASS LIMITED
6



ANNUAL REPORT 2020

OUTLOOK
While the implications of
the COVID-19 pandemic
on construction activity in
New Zealand and Australia
are uncertain, we expect
a significant decline in
economic activity for at
least the next 12 to 24
months. At present external
forecasters are generally
predicting a moderate to
severe reduction in both
New Zealand residential
consents and Australian
housing starts over
this period.
Metroglass’ financial
performance is strongly
correlated with the cyclical
nature of the construction
industry. New residential
dwelling consents in
New Zealand provides a
leading indicator of future
demand and was running at
historical highs in 2019 and
early 2020. However, as a
result of COVID-19 we now
expect building activity to
decline in the coming months
and remain at lower levels
for an extended period.
Given the current heightened
level of uncertainty, the
board and management
team consider it prudent
to develop and monitor a
number of conservative
forward-looking scenarios.
These scenarios have been
formed after assessing
a wide range of inputs
including economic forecasts,
observed market data points
including the implications
observed during previous
recessionary events,
feedback from customers,
and analysis of the company’s
sales trends and existing
forward books of work.
Building activity in New Zealand
essentially ceased during the
COVID-19 shutdown period
and productivity was also
impacted under Alert Levels
3 and 2. This will impact on
the traditional 9-month lag
between residential housing
consents and glass demand,
but this lag will continue to
provide Metroglass some
opportunity to observe
market conditions in the
coming months and refine
our plans accordingly.
Our base case estimate
for 9 month lagged NZ
residential consents is
that they will decline
marginally in FY21 before
declining by c. 20% in
FY22, and then recovering
by c. 5% in FY23.
While detached residential
housing starts in Australia
had begun to stabilise and
showed an improving trend
at the start of 2020, we now
expect a 20% decline in our
key states in FY21 (non-
lagged), followed by a 9%
recovery in FY22.
These are current estimates
and subject to change.
The extent and prolonged
nature of the anticipated
declines in building activity
are uncertain and these
scenarios will continue to
change as the future path
of the economy becomes
clearer. The board and
management are
focused on positioning
the group to traverse
this changing environment.
We will continue to preserve
cash, with a focus on critical
capital expenditure and
effective and proactive
management of costs.
We have made some
progress on our operating
and overhead cost base
during FY20 and will carry
this focus into FY21 to
position the group to
emerge successfully from
the effects of the pandemic.
PETER GRIFFITHS
Chair
SIMON MANDER
Chief Executive
7

MANAGEMENT
REVIEW
SUMMARY
Group revenue of $254.9 million for the
full year ended 31 March 2020 (FY20) was
5% below the previous 12-month period.
New Zealand revenue declined 7% to
$203.0 million, while AGG’s revenue
increased 3% to $51.9 million.
GROUP REVENUE BY SEGMENT ($M)
Residential
NZ
Commercial Glazing
NZ
143.1
141.6
52.5
40.1
21.3
51.9
254.9
267.8
-7% (NZ)
-1%
21.8
50.4
Retrofit
NZ
Total Group
Revenue
Australian
Glass Group
FY19
-5%
FY20
-2%-24%+3%
(+5% in A$)
All values stated herein are in New Zealand dollars (NZD) unless otherwise stated. The financial
reporting impacts of the new lease accounting standard (IFRS-16) are detailed in note 7 to the
financial statements on page 58.
Group EBIT fell 8% in
FY20 to $23.2 million,
before significant items
but inclusive of a $1.9
million net benefit through
adopting the new IFRS-16
lease accounting standard.
The negative repercussions
on the New Zealand economy
caused by the COVID-19
pandemic are expected to
be significant and result
in lower construction
activity for the coming
12 - 24 months. The glass
processing and installation
industry also continues to
be very competitive with
significant increases in
supplier capacity having
come online over the past
few years. The carrying values
of the company’s intangible
assets were reviewed
in this context, which
resulted in an $86.5 million
impairment to New Zealand
goodwill. This non-cash
charge has no impact
on the company’s bank
covenants and is presented
as a significant item in the
FY20 financial statements.
Principally as a result of this
impairment charge, the
group reported a statutory
Net Loss After Tax of $(77.9)
million in FY20, down from a
Net Profit After Tax (NPAT)
of $5.0 million in FY19. NPAT
before significant items
declined to $10.9 million
from $14.2 million in the
prior year.
METRO PERFORMANCE GLASS LIMITED
8



ANNUAL REPORT 2020

SUMMARY OF RESULTS FOR THE 12 MONTHS ENDED 31 MARCH 2020 (FY20)
$MNEW ZEALANDAUSTRALIAGROUP
FY20FY19FY20FY19FY20FY19
Results: After adoption of IFRS-16 (leases)
Revenue203.0 217.4 51.9 50.4 254.9267.8
Segmental EBIT before significant items27.8 (3.6)
EBIT before significant items 23.2
EBIT (67.9)
Profit for the year before significant items 10.9
Profit for the year (NPAT) (77.9)
Results: Before adoption of IFRS-16 (leases)
Revenue203.0 217.4 51.9 50.4 254.9267.8
Segmental EBIT before significant items25.9 31.1 (3.6)(4.8)
EBIT before significant items 21.225.2
EBIT(69.5)15.7
Profit for the year before significant items 11.914.2
Profit for the year (NPAT)(76.6)5.0
GROUP EBIT BRIDGE ($M)
FY19 EBIT
Underlying NZ gross
profit resulting from
revenue decline
Factory and Glazing
cost savings
NZ depreciation
and amortisation
NZ other
25.2
7. 2
2.7
1.1
0.4
1.4
1.0
1.3
0.1
21.2
1.9
23.2
Tasmania growth
New South Wales
cost savings
Victoria sales mix
Other AGG costs
FY20 EBIT
pre-IFRS-16
NZ IFRS-16
lease changes
FY20 EBIT
post IFRS-16
New ZealandAustralia
9

Building activity in
New Zealand essentially
ceased during the COVID-19
shutdown period and
productivity was also
impacted under Alert
Levels 3 and 2. This will
impact on the traditional
9-month lag between
residential housing
consents and glass demand,
but this lag will continue to
provide Metroglass some
opportunity to observe
market conditions in the
coming months and refine
our plans accordingly.
MANAGEMENT REVIEW CONTINUED
Strong operational cash flow,
focused capital expenditure
and further reductions in
working capital enabled the
group to reduce net debt by
$16.5 million to $66.9 million
NEW ZEALAND REVENUE
$203.0M
(-7%)
Total revenue in New Zealand
declined by $14.4 million
(or 7%) to $203.0 million,
principally due to reduced
revenue in the commercial
segment compared with
the prior year, and variable
demand in the residential
window manufacturing
segment in the first half
of FY20.
Despite competitive
pressures and pricing
reductions in the company’s
key residential segment,
residential revenues of
$141.6 million remained
in line with last year.
Commercial glazing revenue
declined 24% in FY20 to
$40.1 million, as the business
lowered its risk tolerance
and focused on small-to-
medium-sized projects.
This focus presents
opportunities for future
targeted growth but
meant that fewer large-
scale projects were
completed compared
to the previous year.
Revenue from the Retrofit
double-glazing channel
declined 2% to $21.3 million.
During FY20, we further
refined the targeting of
our marketing activity and
pleasingly reduced the
average acquisition cost
per customer. Many
consumers are continuing
to undertake partial rather
than full house installations;
however, the average
contract size did increase
versus the prior year.
New Zealand’s EBIT of
$27.8 million, inclusive of the
net benefit of $1.9 million
from the changes to lease
accounting standards, was
11% below last year primarily
as a result of the lower
revenue. Offsetting this
were savings in material
costs due to sound inventory
and factory management as
well as savings achieved by
hiring glazing subcontractors
and labour according to
project workload.
Impairment of
New Zealand goodwill
The impacts of COVID-19
on the group have already
been wide-ranging and
significant. We outline these
and our responses as part
of the COVID-19 excerpt
on page 3. The heightened
level of uncertainty at this
time has made accurate
forecasting of the future
particularly challenging.
The New Zealand construction
industry is now expected
to face significantly lower
activity levels for the coming
12 - 24 months as a result of
the deteriorating economic
conditions. This includes
the significant decline
anticipated in net migration
which will directly impact
housing demand. The glass
processing and installation
industry also continues to
be very competitive with
significant increases in
supplier capacity coming
online over the past
few years.
Due to the current level of
uncertainty, management
have developed a number
of potential future scenarios
that show a range of plausible
outcomes. In forming these
scenarios, management have
considered the views of
several economic forecasters,
observed market data points
(including building consents),
feedback from customers,
analysis of existing forward
books of work, anticipated
customer wins and/or
losses and other
competitive dynamics.
AGG made positive steps in its
turnaround plan, gaining market
share and delivering strong
service levels for its customers.
METRO PERFORMANCE GLASS LIMITED
10



ANNUAL REPORT 2020

Our base case estimate
for 9 month lagged NZ
residential consents is that
they will decline marginally
in FY21 before declining by c.
20% in FY22, and then
recovering by c. 5% in FY23.
Further detail on the
company’s future scenarios
is provided alongside note 4.2
to the financial statements
on page 43.
As a result, the board and
management reviewed
the carrying values of
Metroglass’ assets,
resulting in an $86.5 million
impairment on New Zealand
goodwill. This non-cash
charge has no impact
on the company’s bank
covenants and is presented
as a significant item in the
FY20 financial statements.
The New Zealand goodwill
balance predominantly arose
through the acquisition
of Metropolitan Glass and
Glazing Limited and its
subsidiaries by Metroglass
Holdings Limited on
31 January 2012 (pre-IPO).
AUSTRALIAN GLASS
GROUP REVENUE
$51.9M
(+3%)
AGG continued to
consistently deliver on its
service-led value proposition
throughout the year. AGG’s
revenue increased by 3%
to $51.9 million in FY20
with further growth in
the Tasmanian business
offsetting structural
changes made in NSW.
In Australian dollar terms,
AGG’s revenue increased
5% in FY20, from $47.0
million to $49.2 million.
This revenue growth was
particularly pleasing given
the significant deterioration
in Australian construction
activity during the year.
In the second half of FY20
(the 6 months ended 31
March 2020) AGG continued
its momentum and
significantly improved on the
prior comparable period, with
an 8% increase in revenue,
8% reduction in operating
costs, and a 12% reduction
in overheads, delivering a
positive EBITDA result.
AGG’s FY20 EBIT loss
of $(3.6) million improved
$1.2 million over the prior
year’s results, supported
by growth in Tasmania and
costs savings in NSW.
The Tasmanian business
(commissioned in early 2018)
continued its accelerated
ramp-up, with processing
volumes growing by more
than 50% over the last
12 months. Victoria grew
processing volumes
by 4% and revenue by
$1.2 million during FY20,
within a challenging and
competitive market.
As expected, processing
volumes and revenue
declined in NSW following the
restructure and refocusing
of this business towards
double glazing. However,
double-glazing revenue in
the region increased 11%
compared with the prior year.
AGG made several positive
steps forward in its
turnaround plan this year,
gaining market share and
delivering strong service
levels for its customers. The
business holds a relatively
small but increasing position
in the large and fragmented
south-east Australian
glass processing market
and we continue to see
potential and long-term
value in this investment.
AGG is well positioned to
benefit from the anticipated
roadmap of National
Building Code changes
that will further boost the
demand for double glazing.
CASH FLOW AND
BALANCE SHEET
Metroglass reduced net
debt by $16.5 million this
year, to $66.9 million as
at 31 March 2020. This
reduction was supported by
strong operational cash flow,
focused capital expenditure
across the group and further
reductions in working capital.
Total working capital for
the group declined from
$32.5 million to $30.4 million
as a result of reduced sales
and sound management of
inventory and debtors.
Capital expenditure
increased 12% on the prior
year, to $8.7 million, as the
company invested in safety,
capability and efficiency
projects to support
Metroglass’ position in the
market. These initiatives
included enhanced digital
printing capability, improved
manual handling equipment,
and upgrades to core
information systems.
Metroglass further
strengthened its financial
position this year and
retained borrowing headroom
of more than $50 million
at 31 March 2020. The
company’s banking partners
have agreed to relax
Metroglass’ key financial
covenant: net debt to EBITDA
from 3.0x to 4.0x for all
tests up to and including
31 March 2021. As part of
this covenant relief, the
Group agreed to a quarterly
covenant testing regime,
a cap on non-specified
growth capital expenditure
and a continued cessation
of dividend distributions
until the Net Debt to
EBITDA ratio is below 1.5x.
We continue to work closely
with our banking lenders
and engage in constructive
discussions to provide for
future requirements as
the economic conditions
in both New Zealand and
Australia become clearer.
Existing bank facilities extend
through until 31 August
2021, providing the group
the opportunity to consider
various options to reduce or
refinance its borrowings.
AGG continued to consistently
deliver on its service-led value
proposition throughout the year.
11

OUR STRATEGY
AT A GLANCE
SAFETY
Embed ‘Home safe
every day’ as our
way of life
PRODUCT &
PROCESS QUALITY
Right first time,
every time
OUR
CUSTOMER
At the centre of
everything we do
OUR
PEOPLE
We value,
inspire, train and
develop our team
OWNING
OUR WORK
We take
responsibility and
work as one team
THE METRO WAY
Petr Gierf rPhsWeGlmh((GmBPBte)
12



ANNUAL REPORT 2020

OUR OBJECTIVESFY20 PROGRESS
DELIVER MARKET LEADING
CUSTOMER SERVICE TO OUR
CUSTOMERS
Quality and service are key differentiators
for our customers and critical to their
success and profitability.
• Conducted our second group-wide customer survey, which showed consistent
scores overall and further shift towards ‘positive feedback’, with 2.2 positive
comments for every 1 negative (Prev. 1.4:1)
• Metroglass worked hard to strengthen its relationships with key customers
in New Zealand and delivered a 30% reduction in external rework alongside
stable DIFOT
• Achieved our goal of resetting AGG service performance. AGG operated very
consistently in FY20, with DIFOT improving by 8% and external rework down by
18% AGG is now recognised as a leading Australian double glazing provider, and
delivered revenue growth despite significant declines in overall building activity
• AGG piloted and launched AGG Connect™, our digital platform enabling an
improved customer experience
DEVELOP OUR
ORGANISATIONAL CAPABILITIES
Our people are the key to unlock our value
proposition and critical relationships with
customers. To cultivate this we are investing
in our people, their capabilities, and our
support systems.
• We made progress in reducing our safety risks, but reducing incidents remains
a top priority. The company’s safety programmes and systems are evolving and
maturing, and we are continuing to put effort into supporting our teams with
improved safety equipment, refreshed policies, practices and training. This year
we installed a considerable amount of additional lifting equipment to reduce
repetitive manual handling tasks, and health and safety risks
• Launched a learning management system to enable our employees to develop
and transfer skills and capabilities across the company
• Our latest group-wide employee survey pleasingly showed a 16% increase in the
percentage of engaged employees
• We’re supporting more than 70 apprentices who are now on the journey towards
gaining a professional qualification
• Deployed training and support initiatives to help people leaders improve
the performance and development of their teams
UPHOLD OUR SCALE STRENGTH
THROUGH PRODUCT & CHANNEL
LEADERSHIP
Metroglass’ scale and leadership position
in the New Zealand flat-glass market
provides advantages across customer
support, procurement, manufacturing and
distribution. We will continue to operate
across multiple channels in NZ, offering varied
cycle exposures and growth opportunities.
AGG operates in a much larger and more
fragmented market where a smaller targeted
player can be successful. AGG will continue
to build a strong market position targeted
on providing double glazing and high-
performance glass in the South East
Australian market. Glass is a rapidly evolving
product and we are well placed to continue
to provide market leading offerings.
• Metroglass’ NZ margins grew, but revenue declined as a result of the business
actively de-risking its position in the more complex end of the commercial glazing
segment (with commercial revenue down 23%)
• Introduced an improved technical specification process for generic balustrades
and pool fencing – significantly reducing lead-times for customers
• Completed a national realignment process in our retrofit business, leveraging
regional best practices and approaches to improve future service delivery for
our customers
• Launched market-leading LowE ‘Extreme’ double glazing for the premium window
market which offers similar performance to some triple glazing products
• AGG continued to grow in declining market, with further significant growth
achieved in Tasmania
• AGG successfully released a suite of high-performance glass products into the
domestic and light commercial market, and continue to see the interest in double
glazing grow
LEVERAGE OUR SCALE TO
DELIVER SOLUTIONS EFFICIENTLY
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.
• Across both New Zealand and Australia, we have ramped up and streamlined the
processes for producing and then shipping product between regions, ensuring that
we can continue to meet customer demands across our markets
• Continuous improvement initiatives across all of our manufacturing plants are
continuing to support the operational performance in New Zealand and Australia
• Restructured our Christchurch operations in the first half of the year, supporting
improved South Island profitability, and simplified the shift structures in our
Highbrook plant
• Reshaped our commercial glazing business to more efficiently execute the small to
medium projects within our pipeline
• Restructured the New South Wales business to clearly focus it on the growing
double glazing segment
1
2
3
4
13

PETER GRIFFITHS
Independent, Non-Executive
Chair
Appointed: September 2016
After a career in the energy
industry Peter has become
a professional director. His
last executive position was
as Managing Director of
BP Oil New Zealand, retiring
in 2009. He has previously
served on a number of
boards including Z Energy,
Marsden Maritime Holdings,
The New Zealand Refining
Company, and New Zealand
Oil and Gas. He is also
Chair of the New Zealand
Business and Parliament
Trust and has private
interests in general aviation.
Peters holds a Bachelor
of Science (Honours)
degree from Victoria
University of Wellington.
ANGELA BULL
Independent, Non-Executive
Director, Chair of the People
and Culture Committee
Appointed: May 2017
Angela is currently the
Chief Executive Officer of
Tramco Group Limited, a
large New Zealand property
investment company, a
director of the Real Estate
Institute of New Zealand
and, realestate.co.nz, and
a director of Callaghan
Innovation Research Limited.
She joined Tramco Group
in February 2016. Prior to
leading Tramco, Angela held
a number of senior positions
over a 10-year period with
Foodstuffs, most recently
being General Manager
Property Development for
Foodstuffs North Island.
This was preceded by
a legal career, including
roles with Chapman Tripp,
the Crown Law Office
and Simpson Grierson.
Angela holds Bachelor
of Arts and Bachelor of
Laws degrees from the
University of Auckland.
BOARD OF
DIRECTORS
RUSSELL CHENU
Independent, Non-Executive
Director, Member of the Audit
and Risk Committee
Appointed: July 2014
Russell has significant
experience in the corporate
sector with more than 23
years in senior management
roles. He has considerable
expertise in senior finance-
related roles, including with
building products companies.
Russell is currently an
independent director and
the Chairman of the Audit
and Risk Committee of
ASX-listed businesses CIMIC
Group Limited and Reliance
Worldwide Corporation
Limited. He is also a
director of James Hardie
Industries plc, following a
23-year career with the
company, holding various
management and executive
positions in a number of
countries, including most
recently serving as Group
Chief Financial Officer
from 2004 to 2013. Before
this role, Russell served as
Chief Financial Officer for
several ASX-listed companies
(TAB, Delta Gold, Australian
National Industries and
Pancontinental Mining) and
Mighty River Power. He was
also previously Treasurer of
Pioneer International. Russell
has a Bachelor of Commerce
degree from The University
of Melbourne, a Master of
Business Administration
from Macquarie Graduate
School of Management and
is a Member of the Society
of Certified Practising
Accountants (Australia).
METRO PERFORMANCE GLASS LIMITED
14



ANNUAL REPORT 2020

GRAHAM STUART
Independent, Non-Executive
Director, Member of the Audit
and Risk Committee
Appointed: November 2019
Graham has over 30 years-
experience in senior
executive and governance
roles in New Zealand and
internationally. He was
previously the CEO of Sealord
Group from 2007 to 2014 and
prior to that was CFO and
Director of Strategy with the
Fonterra Co-operative Group
from 2001 to 2007. Graham
is the chair of EROAD
Limited, an independent
director and chair of the
audit committee of Tower
Limited, independent director
and chair of the audit and
risk committee of North
West Healthcare Property
Management Limited. Graham
is a Fellow of Chartered
Accountants Australia &
New Zealand. Graham has
a Master of Science from
Massachusetts Institute of
Technology and a Bachelor
of Commerce from the
University of Otago.
WILLEM (BILL) ROEST
Independent, Non-Executive
Director, Chair of the Audit
and Risk Committee
Appointed: July 2014
Bill has extensive experience
in the New Zealand corporate
sector, both in executive and
non-executive functions, in
particular in the domains
of finance and corporate
governance. He is currently
on the boards of Synlait
Milk (where he chairs the
Audit and Risk Committee)
and New Zealand Housing
Foundation. Prior to his non-
executive roles, Bill held the
position of Chief Financial
Officer at Fletcher Building
for 12 years. Before this,
he held several leadership
roles within the Fletcher
Group, including as Managing
Director of Fletcher
Residential and Fletcher
Aluminium. Bill is a Fellow of
the Association of Chartered
Certified Accountants
(United Kingdom) and an
Associate Member of the
Chartered Accountants
Australia and New Zealand.
As announced on
22 November 2019, Bill Roest
will retire as a director prior
to the Company’s 2020
annual shareholders’ meeting.
RHYS JONES
Independent, Non-Executive
Director, Member of the
People and Culture Committee
Appointed: April 2018
Rhys has had a 30-year
career working in the
Australasian building material
and packaging industries.
He is currently the Executive
Director and Chairman of
the Executive Board of
Vulcan Steel Limited, a large
privately owned trans-
Tasman steel distributor with
over 30 business units across
Australasia. He is also a
director of Carbine Aginvest
Corporation Limited (formally
Tru Test Corporation Limited).
Prior to joining Vulcan Steel
in 2006, Rhys has held
senior roles in particular
with Carter Holt Harvey
Ltd and Fletcher Challenge,
including as Chief Operating
Officer of the Pulp, Paper,
and Packaging business
of Carter Holt Harvey. He
holds a Master of Business
Studies degree from Massey
University and a Bachelor
of Science from Victoria
University of Wellington.
MARK EGLINTON
Independent, Non-Executive
Director, Member of the
People and Culture Committee
Appointed: April 2020
Mark is currently the Group
Chief Executive Officer and
a director of NDA Group,
a leading international
engineering and fabrication
business, and Chair of
Blueberry Country Limited.
Prior to this, he was the
Chief Executive Officer of
Tenon Limited (NZX listed
at that time) from 2005 to
2009 and held several senior
positions with Fletcher
Building, including the
role of Managing Director
of Fletcher Aluminium &
Plyco Doors from 1999 to
2001. Mark has a Bachelor
of Commerce and a
Bachelor of Laws from
the University of Otago.
15

SIMON MANDER
Chief Executive Officer
Joined: November 2018
Simon has broad leadership
expertise at senior levels
across industries ranging
from ag-tech, building
products, to flexible and
fibre-based packaging.
During Simon’s career, he has
specialised in performance
improvement, as well as in
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 market.
Simon joined Metroglass
from Tru-Test Corporation
Limited, a world-leading
New Zealand-based ag-tech
company where he was 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 nine years.
Simon has a trade
background in aircraft
engineering and holds a
Bachelor of Engineering
(Mech) degree from the
University of Auckland. In
addition, he represented
New Zealand in yachting
on a number of occasions
including in the International
470 class at the 1988
Olympic Games.
BRENT MEALINGS
Chief Financial Officer
Joined: January 2020
Brent joined Metroglass
following a 17-year career
with Fonterra Co-operative
Group where he held various
leadership positions, most
recently Director Commercial
Global Operations. Prior
roles included Director
Group Finance and Group
Financial Controller.
Brent is a Chartered
Accountant and holds
a Master of Business
Administration from the
University of Canterbury.
ROBYN GIBBARD
General Manager
Upper North Island
Joined: February 1997
Robyn leads the Upper
North Island region for
Metroglass and has worked
in the business for more
than 20 years. She has
previously led Metroglass’
sales force nationally, and
held many customer-facing
roles across commercial
glazing, branch management
and sales management.
GARETH HAMILL
General Manager
Lower North Island
Joined: April 2002
Gareth leads the Lower
North Island region and has
worked for Metroglass for
more than 15 years, and
brings particular experience
in commercial glazing. He
is a Director of the Glass
and Glazing Institute of
New Zealand, and also a
Member of The Institute of
Building (NZIOB) and of the
Window & Glass Association
of New Zealand (WGANZ)
Glass Technical Committee.
Gareth holds a Bachelor
of Building Science
degree from Victoria
University of Wellington.
SENIOR
LEADERSHIP TEAM
METRO PERFORMANCE GLASS LIMITED
16



ANNUAL REPORT 2020

ANDREW DALLISON
General Manager
South Island
Joined: June 2018
Andrew leads the South
Island region for Metroglass.
He brings over 30 years’
experience, having held senior
sales, technical, operational
and general management
roles in both the packaging
and chemical industries.
Before joining the company,
his most recent role was
leading the packaging division
of The Industrial Group,
based in Saudi Arabia.
Andrew holds a Master of
Business Administration
degree from Deakin
University in Australia
and a Bachelor of
Science degree from the
University of Canterbury.
DAYNA SAUNDERS
Human Resources Director
Joined: November 2014
Dayna leads Metroglass’
Human Resources team
nationally. She has over
10 years’ experience in
HR, Talent & Recruitment
spending eight years at
Fletcher Building before
commencing with Metroglass.
Dayna holds a Bachelor
of Business degree in
Marketing & Management
and a NZ Diploma in
Business from the Auckland
University of Technology.
BARRY PATERSON
General Manager
Commercial Glazing
and Technical
Joined: November 2005
Barry leads Metroglass’
technical team and
commercial glazing business
nationally. He has 15 years
of experience across the
New Zealand and Australian
glass industries. Barry has
held a diverse range of
commercial and management
finance roles in the arable
and manufacturing industries,
and was a director on the
board of Westland Milk
Products from 2010 to 2016.
He holds a Bachelor of
Commerce and Management
degree and a Postgraduate
Diploma in Marketing
from Lincoln University.
AMANDEEP KAUR
Group Health and
Safety Manager
Joined: April 2019
Amandeep leads Group
Health and Safety across
both our New Zealand
and Australia businesses,
responsible for the
development and
implementation of health
and safety strategy. She
brings with her a wealth of
experience, with strengths
in creating and implementing
a high-performing safety
culture. Before joining the
company, Amandeep held
senior health and safety
roles at Harrison Grierson,
Sinclair Knight Merz, and
Compass Group, after
starting her career in quality
assurance with Nestlé,
Frucor and Real Foods.
Amandeep holds a Master
in Food Science Technology
degree as well as a Graduate
Diploma in Occupational
Health and Safety.
17

NON-GAAP FINANCIAL INFORMATION
Metroglass’ standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP)
is profit for the year, or net profit after tax. Metroglass 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 Group’s financial performance, financial
position or returns, and 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 NZ IFRS. 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.
• EBITDA before significant items: EBITDA less significant items, being: an $86.5m impairment of New Zealand
goodwill (“FY20 goodwill impairment”) in FY20, $4.6m of redundancies and associated costs relating to the
restructure of the New South Wales operation in FY20 (“NSW restructure costs) and $9.6m of intangible
asset impairment cost in FY19 (“FY19 intangible asset impairment”).
• EBIT before significant items: EBIT less significant items, being: FY20 goodwill impairment, NSW restructure
costs, and FY19 intangible asset impairment.
• Profit for the year before significant items: Profit for the year less significant items, being: FY20 goodwill
impairment, NSW restructure costs, FY19 intangible asset impairment and an AGG tax refund relating to
prior periods.
• NPATA: Profit for the year before the amortisation of acquisition-related intangibles and its associated tax effect.
GAAP TO NON-GAAP RECONCILIATION
Full Year to 31 March
FY20
($M)
FY19
($M)
Profit for the year before significant items10.914.2
Add: Tax adjustments relating to prior periods0.9–
Less: NSW restructure costs(3.2)–
Less: Impairment of intangible assets(86.5)(9.2)
Profit for the year (GAAP)(77.9)5.0
Add: taxation expense2.95.5
Add: net finance expense7.05.1
Earnings before interest and tax (EBIT) (GAAP)(67.9)15.7
Add: depreciation & amortisation21.714.5
EBITDA(46.2)30.1
EBIT (GAAP)(67.9)15.7
Add: NSW restructure costs4.6–
Add: Impairment of intangible assets86.59.6
EBIT before significant items23.225.2
EBITDA(46.2)30.1
Add: NSW restructure costs4.6–
Add: Impairment of intangible assets86.59.6
EBITDA before significant items44.939.7
Profit for the year (GAAP)(77.9)5.0
Add back: amortisation of acquisition-related intangibles and its associated tax effect1.41.7
NPATA(76.5)6.7
20 3REV03NR32UAD0EIGUSSEGP2P 0F
18



ANNUAL REPORT 2020

OUR RESULTS
Consolidated Statement of Comprehensive Income ....................20
Consolidated Statement of Financial Position ...............................21
Consolidated Statement of Changes in Equity ...............................22
Consolidated Statement of Cash Flows ............................................23
Notes to the CONSOLIDATED financial statements .....................25
1. Basis of preparation ...........................................................................25
1.1 Basis of preparation ...........................................................................25
1.2 COVID-19 Pandemic .............................................................................26
1.3 Going concern ........................................................................................27
2 Financial Performance .......................................................................27
2.1 Segment Information..........................................................................27
2.2 Revenue .....................................................................................................29
2.3 Operating expenditure .......................................................................29
2.4 Significant items ...................................................................................30
2.5 Earnings per share...............................................................................31
3 Working Capital ......................................................................................32
3.1 Trade receivables ..................................................................................32
3.2 Inventories ...............................................................................................33
3.3 Trade and other payables .................................................................34
3.4 Deferred Income ...................................................................................34
3.5 Financial instruments .........................................................................35
4 Long-Term Assets ................................................................................41
4.1 Property, Plant and equipment.......................................................41
4.2 Intangible Assets ..................................................................................43
5 Debt & Equity ..........................................................................................49
5.1 Interest-bearing liabilities ...............................................................49
5.2 Contributed equity ...............................................................................51
6 Other ..........................................................................................................53
6.1 Income taxation .....................................................................................53
6.2 Deferred taxation .................................................................................53
6.3 Group Reserves .....................................................................................55
6.4 Related Party Transactions .............................................................57
6.5 Contingencies .........................................................................................57
6.6 Commitments .........................................................................................57
7 Leases ........................................................................................................58
7.1 Right-of-use Assets ...........................................................................59
7.2 Reconciliation of lease commitments
to lease liabilities ..................................................................................60
Independent auditor’s report .........................................................63

FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATEDCONSOLIDATED
Notes
2020
$’000
2019
$’000
Sales revenue2.1254,908 267,836
Cost of sales(139,037)(146,517)
Gross profit2.1115,871 121,319
Distribution and glazing-related expenses(45,350)(47,593)
Selling and marketing expenses(14,370)(13,621)
Administration expenses(33,571)(34,870)
Other income582 –
Profit before significant items, interest and tax23,162 25,235
Significant items2.4(91,074)(9,560)
(Loss)/Profit before interest and tax(67,912)15,675
Finance expense(7,145)(5,105)
Finance income 101 19
(Loss)/Profit before income taxation(74,956)10,589
Income taxation expense6.1(2,908)(5,547)
(Loss)/Profit for the year(77,864)5,042
Other comprehensive income
Items that may be reclassified to profit or loss in the future:
Exchange differences on translation of foreign operations(11)(253)
Cash flow hedges (net of tax)978 (226)
Total comprehensive income/(loss) for the year attributable to shareholders(76,897)4,563
Earnings per share
Basic and diluted earnings per share (cents per share)2.5(42.0)2.7
The Board of Directors authorised these financial statements for issue on 19 June 2020.
For and on behalf of the Board:
Peter Griffiths Willem (Bill) Roest
Chairman Director
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Refer to Note 7 specifically relating to the impact of adoption of NZ IFRS 16 Leases.
METRO PERFORMANCE GLASS LIMITED
20



ANNUAL REPORT 2020

AS AT 31 MARCH 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATEDCONSOLIDATED
Notes
2020
$’000
2019
$’000
Assets
Current assets
Cash and cash equivalents14,742 5,488
Trade receivables3.133,294 38,839
Inventories3.220,276 22,934
Derivative financial instruments3.51,982 172
Other current assets12,711 5,345
Total current assets83,005 72,778
Non-current assets
Property, plant and equipment4.159,645 64,581
Right-of-use assets7.150,363 –
Deferred tax assets6.27,520 3,011
Intangible assets4.257,499 146,442
Total non-current assets175,027 214,034
Total assets258,032 286,812
Liabilities
Current liabilities
Trade and other payables3.323,216 29,286
Deferred income3.47,366 1,080
Income tax liability2,766 2,408
Derivative financial instruments3.5200 659
Lease liabilities7.25,552 –
Provisions1,992 916
Total current liabilities41,092 34,349
Non-current liabilities
Interest-bearing liabilities5.181,630 88,832
Derivative financial instruments3.51,986 1,057
Lease incentive– 2,650
Lease liabilities7.253,933 –
Provisions2,551 2,961
Total non-current liabilities140,100 95,500
Total liabilities181,192 129,849
Net assets76,840156,963
Equity
Contributed equity5.2307,198 306,693
Retained earnings(60,472)21,329
Group reorganisation reserve(170,665)(170,665)
Share-based payments reserve6.3931 725
Foreign currency translation reserve(15)(4)
Cash flow hedge reserve(137)(1,115)
Total equity76,840156,963
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
21

FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED
2020
Notes
Contributed
Equity
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Opening balance at 1 April 2019306,693 (171,059)21,329 156,963
Change in accounting policy (adoption of NZ IFRS 16)1––(3,937)(3,937)
Restated total equity at 1 April 2019306,693 (171,059)17,392 153,026
Loss for the year––(77,864)(77,864)
Movement in foreign currency translation reserve–(11)–(11)
Other comprehensive income for the year3.5–978 –978
Total comprehensive income/(loss) for the year–967 (77,864)(76,897)
Dividends paid––––
Payments received on management incentive plan shares5.2144 ––144
Vesting of employee share purchase scheme5.2361 (181)–180
Movement in share-based payments reserve6.3–387 –387
Total transactions with owners, recognised directly in equity505 206 –711
Balance at 31 March 2020307,198 (169,886)(60,472)76,840
CONSOLIDATED
2019
Notes
Contributed
Equity
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Opening balance at 1 April 2018306,653 (170,550)24,233 160,336
Change in accounting policy (adoption of NZ IFRS 9 and NZ IFRS 15)– – (905)(905)
Restated total equity at 1 April 2018306,653 (170,550)23,328 159,431
Profit for the year– – 5,042 5,042
Movement in foreign currency translation reserve– (253)– (253)
Other comprehensive income /(loss) for the year– (226)– (226)
Total comprehensive income/(loss) for the year– (479)5,042 4,563
Dividends paid– – (7,041)(7,041)
Payments received on management incentive plan shares5.240 ––40
Movement in share-based payments reserve6.3– (30)– (30)
Total transactions with owners, recognised directly in equity40 (30)(7,041)(7,031)
Balance at 31 March 2019306,693 (171,059)21,329 156,963
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
METRO PERFORMANCE GLASS LIMITED
22



ANNUAL REPORT 2020

FOR THE YEAR ENDED 31 MARCH 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Cash flows from operating activities
Receipts from customers259,636 269,117
Payments to suppliers and employees(215,143)(231,190)
Interest received101 19
Interest paid(3,786)(5,327)
Interest paid on leases(3,227)–
Income taxes paid(6,007)(8,970)
Net cash inflow from operating activities31,574 23,649
Cash flows from investing activities
Payments for property, plant and equipment (net)(8,834)(7,088)
Payments for intangible assets(636)(718)
Net cash outflow from investing activities(9,470)(7,806)
Cash flows from financing activities
Lease liability principal payments(6,407)–
Repayment of borrowings (net)(6,522)(1,146)
Payments received on management incentive plan shares144 1,375
Dividend paid–(7,041)
Net cash outflow from financing activities(12,785)(6,812)
Net increase in cash and cash equivalents9,319 9,031
Cash and cash equivalents at the beginning of the year5,488 (3,497)
Effects of exchange rate changes on cash and cash equivalents(65)(46)
Cash and cash equivalents at the end of the year14,742 5,488
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
The table below sets out the annual movement in net debt:
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Opening balance of interest-bearing liabilities at 1 April88,832 90,818
Repayment of borrowings(6,522)(1,146)
Foreign exchange adjustments(680)(840)
Closing balance of interest-bearing liabilities at 31 March81,630 88,832
Less: cash and cash equivalents(14,742)(5,488)
Net debt at 31 March66,888 83,344

23

CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Reconciliation of (loss)/profit after income tax to net cash inflow from operating activities
(Loss)/profit for the year(77,864)5,042
Items not involving cash flows
Depreciation and amortisation21,670 14,458
Property, plant and equipment loss on disposal2,349–
Impairment of intangible assets86,500 9,560
Share-based payments expense374 (30)
Movement in deferred tax(3,094)(3,389)
Movement in credit loss provision882 (1,311)
Surplus on disposal of assets(29)(337)
Other185 71
108,837 19,022
Impact of changes in working capital items
Trade and other receivables4,546 481
Inventory2,600 504
Other current assets(7,375)193
Trade accounts payable and employee entitlements(5,929)(1,692)
Deferred income6,287 1,080
Interest accruals(13)(222)
General provisions127 (414)
Lease incentive provision–78
Income tax liability358 (423)
601 (415)
Net cash inflow from operating activities31,574 23,649
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED 31 MARCH 2020
METRO PERFORMANCE GLASS LIMITED
24



ANNUAL REPORT 2020
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF
PREPARATION
1.1 BASIS OF PREPARATION
Reporting entity
These financial statements
are for Metro Performance
Glass Limited (‘the Company’)
and its subsidiaries (together,
‘the Group’). The Group
supplies processed flat glass
and related products
primarily to the residential
and commercial building
sectors. The Company is a
for-profit entity for financial
reporting purposes and has
operations and sales in
New Zealand and Australia.
Statutory base
The Company is a limited
liability company incorporated
and domiciled in New Zealand.
The address of its registered
office is 5 Lady Fisher Place,
East Tamaki, Auckland.
The incorporation date for
Metro Performance Glass
Limited was 30 May 2014
and as part of a group
reorganisation was listed
on the New Zealand
Securities Exchange
(NZSX) on 29 July 2014.
Basis of preparation
These consolidated financial
statements have been
approved for issue by
the Board of Directors
on 19 June 2020.
The consolidated financial
statements of the Group
have been prepared in
accordance with Generally
Accepted Accounting
Practice in New Zealand
(NZ GAAP). The Group is
a for-profit entity for the
purposes of complying with
NZ GAAP. The consolidated
financial statements comply
with New Zealand equivalents
to International Financial
Reporting Standards
(NZ IFRS), other New Zealand
accounting standards and
authoritative notices that
are applicable to entities
that apply NZ IFRS. The
consolidated financial
statements also comply
with International Financial
Reporting Standards (IFRS).
Metro Performance Glass
Limited is a limited liability
company registered under
the New Zealand Companies
Act 1993 and is a Financial
Market Conduct reporting
entity under Part 7 of the
Financial Markets Conduct
Act 2013. The financial
statements of the Group
have been prepared in
accordance with the
requirements of the
New Zealand Stock Exchange
(NZX) Main Board Listing Rules.
Historical cost convention
The financial statements
have been prepared
under the historical cost
convention, except for
the revaluation of certain
financial assets and financial
liabilities at fair value.
Principles of consolidation
The financial statements
incorporate the assets and
liabilities of all subsidiaries
of Metro Performance Glass
Limited (‘the company’ or ‘the
parent entity’) as at 31 March
2020 and the results of all
subsidiaries for the year
then ended.
Subsidiaries are all entities
over which the Group has
control. It is a controlled
entity of the Company if
the Company is exposed
and has a right to variable
returns from the entity
and is able to use its power
over the entity to affect
those returns. Subsidiaries
are fully consolidated
from the date on which
control is transferred to
the Group. They are de-
consolidated from the
date that control ceases.
Intercompany transactions,
balances and unrealised
gains on transactions
between Group companies
are eliminated. Unrealised
losses are also eliminated
unless the transaction
provided evidence of
the impairment of the
asset transferred.
Goods and Services
Tax (GST)
The statement of
comprehensive income has
been prepared so that all
components are stated
exclusively of GST. All items
in the statement of financial
position are stated net of
GST, with the exception of
receivables and payables,
which include GST invoiced.
Critical accounting
estimates and judgements
Estimates and judgements
are continually evaluated and
are based on historical
experience and other factors,
including expectations of
future events that are
believed to be reasonable
under the circumstances.
The Group makes estimates
and assumptions concerning
the future. The resulting
accounting estimates will,
by definition, seldom equal
the related actual results.
The estimates and
assumptions that have a
significant risk of causing a
material adjustment to the
carrying amounts of assets
and liabilities within the next
financial year are discussed
in each accounting note
as appropriate.
FOREIGN CURRENCY
TRANSLATION
Functional and
presentation currency
The consolidated financial
statements are presented
in New Zealand dollars,
which is the Company’s
functional and presentation
currency and rounded where
necessary to the nearest
thousand dollars.
Transactions and balances
Foreign currency
transactions are translated
using the exchange rates
prevailing at the dates
of the transactions.
Foreign exchange gains
and losses resulting from
the settlement of such
transactions and from the
translation at period end
exchange rates of monetary
assets and liabilities
denominated in foreign
currencies are recognised
in profit or loss. They are
deferred in equity if they
relate to qualifying cash
flow hedges and qualifying
net investment hedges or
are attributable to part
of the net investment
in a foreign operation.
25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The results and financial position of foreign operations that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of
that balance sheet
• income and expenses for each statement of profit or loss and statement of comprehensive income are
translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect
of the rates prevailing on the transaction dates, in which case income and expenses are translated at the
dates of the transactions), and
• all resulting exchange differences are recognised in ‘Other comprehensive income’.
CHANGES IN ACCOUNTING POLICY AND DISCLOSURES
New and amended standards adopted by the Group
NZ IFRS 16 Leases was adopted on 1 April 2019. The new standard requires a lessee to recognise a lease liability that
reflects future lease payments and a ‘right-of-use’ asset for virtually all lease contracts. Interest and depreciation
charges on the lease liability and right-of-use assets replace the operating expenses that were incurred under
NZ IAS 17. Note 7 provides further information of the impact on the Group of adopting NZ IFRS 16.
Except as described above, the accounting policies applied are consistent with those of the annual financial
statements for the year ended 31 March 2019, and as described in those annual financial statements.
There have been no other changes to accounting policies and no other new standards adopted during the year.
1.2 COVID-19 PANDEMIC
On 11 March 2020 the World Health Organization declared a global pandemic as a result of the outbreak and spread
of COVID-19. Following this, on Wednesday 25 March 2020, the New Zealand Government raised its Alert Level to 4
(full lockdown of non-essential services) moving down to Alert Level 3 on 27 April 2020, Alert Level 2 on 14 May 2020
and to Alert Level 1 on 9 June 2020. During Alert Level 4, the Group’s operations in New Zealand were deemed a
non-essential service, and as a result, the Group’s New Zealand manufacturing plants and all branches were shut
down from 25 March 2020 to 27 April 2020. The shutdown severely impacted trading in New Zealand over that period.
The Group’s Australian business continued to operate largely unaffected through the same period..
An assessment of the impact of COVID-19 on the Group balance sheet is set out below, based on information
available at the time of preparing the financial statements:
BALANCE SHEET ITEMCOVID-19 ASSESSMENTNOTE
Trade receivablesThe Group has increased the provision for expected credit losses to reflect expected
financial difficulties of customers.
3.1
Deferred incomeThe Group applied for the New Zealand Government wage subsidy prior to balance date,
receiving it on 14 April 2020.
3.4
Property, plant and
equipment
Plant and equipment are stated at historical cost less depreciation and impairment. The
spread of COVID-19 and the resulting economic impacts provide an external indicator of
impairment. The Group has performed an impairment assessment and has concluded that
no impairment is required.
4.1
Right-of-use assets/Lease
liabilities
The Group has engaged with landlords for rent relief. The negotiations were completed
after balance date and as a result no adjustment is required to the carrying value of
right-of-use assets or lease liabilities at 31 March 2020.
7.1
GoodwillThe Group has considered the impacts of COVID-19 in the assumptions used in the
assessment of goodwill. As a result, an impairment has been recognised for the
New Zealand cash-generating unit (CGU).
4.2
Interest bearing liabilitiesThe Group’s banking partners have agreed to ease the leverage ratio covenant of net
debt to EBITDA from 3.0x to 4.0x for all test dates up to and including 31 March 2021.
5.1
1. Earn.EiaE1gsb.refgoorft1t .,
26



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
1.3 GOING CONCERN
There are inherent uncertainties in both
New Zealand and Australia relating to
the impact of continued border closures
on future net migration and the extent
of the deterioration in general economic
conditions. Accordingly the Directors
consider it appropriate to take a
cautious outlook on future residential
building activity. Notwithstanding a
challenging forecasting landscape, the
Directors are of the view that there will
be an adverse impact on the Group’s
earnings in the near term. Further detail
on the Group’s forecasts, which reflect
the matters referred to above and are
used in the assessment of both forecast
financial covenant compliance and the
carrying value of goodwill, is provided
Note 4.2.
In response, the Group has taken the
following measures:
• introduced cost control measures
and other actions to preserve the
cash position of the business
going forward
• cancelled or deferred all non-essential
capital and operating spend
• applied for and received the
New Zealand Government
wage subsidy
• obtained an Amendment and Waiver
letter from its banking partners to
ease the leverage ratio covenants
for all test dates up to and including
31 March 2021. The key covenant test
of Net Debt to EBITDA (on a pre-IFRS
16 basis) has been eased from 3.0x
to 4.0x. As part of this covenant
relief, the Group agreed to a
quarterly covenant testing regime,
a cap on non-specified growth capital
expenditure, a continued cessation
of dividend distributions until the
Net Debt to EBITDA ratio is below
1.5x and regular updates to the
banks. The Net Debt to EBITDA
covenant test (on a pre-IFRS 16
basis) returns to 3.0x after
31 March 2021.
The Group will need to refinance, extend
the term of or repay its facilities before
31 August 2021, and this period of time
provides the Group with various options
to reduce or refinance its borrowings.
The Directors have concluded that
it is appropriate that these financial
statements are prepared on a going
concern basis, taking regard of the
above and while acknowledging the
uncertainties around forecasting
earnings in the COVID-19 environment.
The Directors acknowledge that such
uncertainties do not represent material
uncertainties related to going concern.
2 FINANCIAL PERFORMANCE
2.1 SEGMENT INFORMATION
Operating segments of the Group at
31 March 2020 have been determined
based on financial information that
is regularly reviewed by the Board in
conjunction with the Chief Executive
Officer and Chief Financial Officer,
collectively known as the Chief
Operating Decision-maker for the
purpose of allocating resources,
assessing performance and making
strategic decisions.
Substantially all of the Group’s revenue
is derived from the sale of glass and
related products and services. This
revenue is split by channel only at the
revenue level into Commercial Glazing,
Residential and Retrofit. Commercial
glazing revenue reflects sales through
four specific commercial glazing
operations in New Zealand. The
allocation of sales between residential
and commercial can be difficult as
the Group does not always know the
end-use application. Following the
acquisition of Australian Glass Group
Pty Ltd (AGG) on 1 September 2016
the Group operates in two geographic
segments, New Zealand and Australia.
In the tables below:
• Group costs consist of insurance,
professional services, director fees
and expenses, listing fees and
share incentive scheme costs.
• significant items related to
impairment of intangible assets in
AGG in 2019, impairment of goodwill
in New Zealand and costs associated
with the restructure of New South
Wales operations in 2020.
27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CONSOLIDATED 2020
New Zealand
$’000
Australia
$’000
Eliminations
& Other
$’000
Group
$’000
Commercial Glazing40,139 ––40,139
Residential141,551 51,872 –193,423
Retrofit21,346 ––21,346
Total revenue203,036 51,872 –254,908
Gross profit104,774 11,097 –115,871
Segmental EBITDA before significant items and NZ IFRS 1636,458 (242)–36,216
NZ IFRS 16 Lease adjustment6,806 2,850 –9,656
Segmental EBITDA before significant items43,264 2,608 –45,872
Group costs––(1,040)(1,040)
Group EBITDA before significant items–––44,832
Depreciation and amortisation(15,467)(6,203)–(21,670)
EBIT before significant items27,797 (3,595)(1,040)23,162
Significant items(86,500)(4,574)–(91,074)
EBIT(58,703)(8,169)(1,040)(67,912)
Segment assets264,682 63,828 (70,478)258,032
Segment non-current assets (excluding deferred tax assets)123,303 44,204 –167,507
Segment liabilities78,417 61,854 40,921 181,192
CONSOLIDATED 2019
New Zealand
$’000
Australia
$’000
Eliminations
& Other
$’000
Group
$’000
Commercial glazing52,462 ––52,462
Residential143,136 50,402 –193,538
Retrofit21,836 ––21,836
Total revenue217,434 50,402 –267,836
Gross profit110,261 11,058 –121,319
Segmental EBITDA before significant items41,972 (1,212)–40,760
Group costs––(1,066)(1,066)
Group EBITDA before significant items–––39,694
Depreciation and amortisation10,885 3,574 –14,459
EBIT before significant items31,087 (4,786)(1,066)25,235
Significant items–(9,560)–(9,560)
EBIT31,087 (14,346)(1,066)15,675
Segment assets284,25157,269(54,708)286,812
Segment non-current assets (excluding deferred tax assets)170,186 40,837 –211,023
Segment liabilities27,25854,10748,484129,849
METRO PERFORMANCE GLASS LIMITED
28



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2.2 REVENUE
Accounting policy
Revenue comprises the value of the consideration received for the sale of goods and services, net of GST, rebates
and discounts and after eliminating sales within the Group.
The Group derives revenue from the sale of customised glass products. Revenue is recognised at a point in time
when a Group entity has transferred control, which is when it has delivered the glass products to the customer,
the customer has accepted the products and collectability of the related receivables is highly probable.
The Group also provides glazing services along with the sale of its glass products. Revenue is recognised for the
glazing and associated glass products when the glazing services have been completed, the customer has approved
the installation services and collectability of the related receivables is highly probable.
2.3 OPERATING EXPENDITURE
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Raw materials and consumables used67,296 72,212
Employee benefit expenses99,514 99,337
Subcontractor costs5,039 6,684
Depreciation and amortisation
1
21,670 14,459
Transportation and logistics10,028 10,357
Occupancy costs
1
1,014 10,528
Advertising1,950 1,858
Other expenses25,817 27,166
Total cost of sales, distribution and glazing related expenses, selling and marketing
expenses, and administration expenses232,328 242,601
1
Impacted by NZ IFRS 16 Leases transition. 2020 includes depreciation of right-of-use assets in Depreciation and amortisation. 2019
includes property operating lease payments in Occupancy costs.
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Audit and review of financial statements
Audit and review of financial statements - PwC376 315
Other services performed by PwC
Agreed-upon procedures relating to covenant compliance certificate and annual report– 11
Share scheme advice–56
Executive reward services–19
Real estate advisory services20 –
396 401
29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2.4 SIGNIFICANT ITEMS
CONSOLIDATEDCONSOLIDATED
Note
2020
$’000
2019
$’000
Impairment of New Zealand intangible assets4.286,500 –
Impairment of Australian intangible assets4.2–9,560
Restructure of New South Wales operations4,574 –
Total significant items before taxation91,074 9,560
Tax benefit on above items(1,372)(384)
Tax adjustments relating to prior periods6.1(916)–
Total significant items after taxation88,7869,176
Impairment of New Zealand intangible assets
Additional detail on impairment charges can be seen in the Intangible Assets Note 4.2.
Tax adjustments relating to prior periods
Tax adjustments relating to prior periods comprise a tax refund received by AGG relating to the reassessment
of prior year tax positions, in particular a difference between the market value and written-down value for tax
of assets at the time of AGG’s acquisition. The refund relates to additional depreciation claimed via a ‘step-up’
in taxable cost base.
Restructure of New South Wales operations
During the year, the New South Wales operations of AGG were consolidated to focus on supplying double-glazed
units to window manufacturers, with local production of non-window or processed glass discontinued. The
restructure had a direct impact on staff and discontinuation of identified plant and equipment. As a result,
the expenses below were recognised during the year:
Total
$’000
Property, plant and equipment loss on disposal2,349
Inventory write-down499
Redundancy payments581
Other1,145
4,574
During the year, the Group recognised income from the New Zealand wage subsidy scheme (Note 3.4) and increased
the credit loss provision (Note 3.1) due to the heightened risk created by the impact of COVID-19. The items are not
considered material for inclusion in significant items.
Accounting Policy
Significant items are a non-GAAP measure and are based on the Group’s internal policy as follows. Transactions
considered for classification as significant items are material restructuring costs, acquisition and disposal costs,
impairment or reversal of impairment of assets, business integration, and transactions or events outside of the
Group’s ongoing operations that have a significant impact on reported profit.
METRO PERFORMANCE GLASS LIMITED
30



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2.5 EARNINGS PER SHARE
Basic
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average number
of ordinary shares outstanding during the period.
CONSOLIDATEDCONSOLIDATED
20202019
(Loss)/Profit after tax ($’000)(77,864)5,042
Weighted average number of ordinary shares outstanding (‘000s)185,378 185,378
Basic earnings per share (cents per share)(42.0)2.7
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding
to assume conversion of all dilutive potential ordinary shares.
CONSOLIDATEDCONSOLIDATED
20202019
Weighted average number of ordinary shares outstanding (‘000s)185,378 185,378
Adjusted for share options (‘000s)
1
––
Weighted average number of ordinary shares for diluted earnings per share (‘000s)185,378 185,378
Diluted earnings per share (cents per share)(42.0)2.7
1
As no options are in the money, no dilution adjustment has been made.
Net tangible assets
Net tangible assets per share is a non-GAAP measure that is required to be disclosed by the NZX Listing Rules.
The calculation of the Group’s net tangible assets per share and its reconciliation to the consolidated balance sheet
is presented below:
CONSOLIDATEDCONSOLIDATED
20202019
Total assets ($’000)258,032 286,812
Less: intangible assets(57,499)(146,442)
Less: total liabilities(181,192)(129,849)
Net tangible assets ($’000)19,341 10,521
Shares on issue at the end of the period (‘000s)185,378 185,378
Net tangible assets per share (cents per share)10.43 5.68
Impact of NZ IFRS 16 on the Group’s net tangible assets per share at 31 March 2020
Pre
NZ IFRS 16
2020
Adjustments
under
NZ IFRS 16
2020
Post
NZ IFRS 16
2020
Total assets ($’000)205,650 52,382 258,032
Less: intangible assets(57,499)–(57,499)
Less: total liabilities(121,081)(60,111)(181,192)
Net tangible assets ($’000)27,070 (7,729)19,341
Shares on issue at the end of the period (‘000s)185,378 –185,378
Net tangible assets per share (cents per share)14.60 –10.43
31

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3 WORKING CAPITAL
3.1 TRADE RECEIVABLES
The following table summarises the impact of the credit loss provision on the trade receivables balance.
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Trade receivables36,132 40,800
Credit loss provision(2,838)(1,961)
33,294 38,839
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Movements in the credit loss provision are as follows:
Opening balance1,961 995
Impact of first-time adoption of NZ IFRS 9–1,334
Provision for impairment recognised during the year1,533 371
Receivables written off during the year as uncollectable(656)(739)
Balance at the end of the year2,838 1,961
Credit risk
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, and credit exposures
to wholesale and retail customers, including outstanding receivables and committed transactions, and is managed
at Group level.
The table below sets out information about the credit quality of trade receivables net of the expected credit
loss provision:
Current30-59 days60-89 days
90 days and
laterTOTAL
31 March 2020$’000$’000$’000$’000$’000
Gross carrying amount 21,772 8,037 2,029 4,294 36,132
Baseline 128 196 146 896 1,366
Market 53 10 8 203 274
Specific – – – 1,198 1,198
Total expected credit loss rate0.83%2.57%7.59%53.49%7.85%
Credit loss provision 181 206 154 2,297 2,838
Current30-59 days60-89 days
90 days and
laterTOTAL
31 March 2019$’000$’000$’000$’000$’000
Gross carrying amount 25,189 6,629 1,852 7,130 40,800
Baseline 135 136 100 414 785
Market 120 33 36 224 413
Specific – – – 763 763
Total expected credit loss rate1.01%2.56%7.36%19.65%4.81%
Credit loss provision 255 169 136 1,401 1,961
20 3REV03NR32UAD0EIGUSSEGP2P 0F
32



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Group extends credit to its customers based on an assessment of credit worthiness. Terms differ by customer
and may extend to 60 days past invoice date. A portion of the Group’s receivables are also subject to contractual
retentions which can last up to and exceed 12 months. Ageing is from invoice date and at balance date, a portion
of trade receivables are past due as defined by the applicable credit terms.
As of 31 March 2020, allowing for retention balances of $3.2 million (2019: $3.6 million) trade receivables of
$8.5 million (2019: $10.3 million) were past due but not impaired.
Critical estimates and judgements
Credit loss provision
To measure expected credit losses, trade receivables have been grouped and reviewed on the basis of the number
of days past due. The credit loss provision has been calculated by considering the impact of the following
characteristics:
• The baseline loss rate takes into account the write-off history of the Group over a five-year period as a predictor
of future conditions and applies an increasing expected credit loss estimate by trade receivables ageing profiles.
• The market characteristic considers the relative risk related to any particular market segment and makes an
assessment of the indirect exposure the Group has in respect of this market segment’s conditions via our
customer base. Of particular focus with respect to this characteristic in the current period is the direct and
indirect exposure to the vertical construction market segment.
• Specific credit loss provisions are made based on any specific customer collection issues that are identified.
Collections and payments from our customers are continuously monitored and a credit loss provision is
maintained to cover any specific customer credit losses anticipated.
COVID-19 impact
The Group has performed an assessment of credit risk on its customer base taking into consideration the
factors below:
• profile of the customer, i.e. corporate or individual customers
• region the customer is based in
• size and nature of the customer
• the Group’s understanding of and experience with the customer.
As a result of this assessment, the Group has increased its baseline and specific provisions to $2.5 million
(2019: $1.5 million), to reflect the estimated financial impact of defaults.
Accounting policy
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision
for estimated uncollectable amounts and expected credit losses. The carrying amount of the asset is reduced
through the use of provision accounts, and the amount of the loss is recognised in the statement of comprehensive
income within ‘Administration expenses’. Individual debtor accounts are reviewed for impairment and a provision is
raised based on management’s best estimate of recoverability. Trade receivables are also assessed for credit risk
on a forward-looking basis with a provision raised where a credit loss is considered likely. When a trade receivable
is uncollectable, it is written off against the provision account for trade receivables. Subsequent recoveries of
amounts previously written off are credited to the income statement against the impairment losses on receivables.
3.2 INVENTORIES
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Raw materials, primarily flat glass stock-sheets17,759 20,497
Work in progress2,517 2,437
20,276 22,934
The cost of inventories recognised as an expense and included in ‘Cost of sales’ amounted to $67.4 million
(2019: $72.2 million)
33

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
COVID-19 impact
The Group has assessed the impact of COVID-19 on the net realisable value of inventory. The majority of the
Group’s inventory items have no specific risk of obsolescence and are expected to be realised through sale
within four months. As a result, no write-down of inventory values was recognised.
Accounting policy
Raw materials and stock, work in progress and finished goods are stated at the lower of cost and net realisable
value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead
expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual
items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion and the estimated costs necessary to make
the sale.
3.3 TRADE AND OTHER PAYABLES
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Trade accounts payable17,354 19,939
Employee entitlements4,962 7,349
GST payable428 886
Other interest accruals175 189
Management incentive accrual297 923
23,216 29,286
Trade accounts payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
period which are unpaid. The carrying amount represents fair value due to their short-term nature.
Employee entitlements
Liabilities for wages and salaries, including non-monetary benefits, annual leave and lieu leave, are recognised in
respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid
when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken
and measured at the rates paid or payable.
The Group recognises a liability and an expense for bonuses on a formula that takes into consideration the profit
attributable to the Group’s shareholders. The Group recognises a provision where contractually obliged or where
there is a past practice that has created a constructive obligation.
3.4 DEFERRED INCOME
The Group recognises a contract liability when a deposit is received before the product or service is transferred
to the customer.
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Customer contract liabilities1,290 1,080
New Zealand Government wage subsidy6,076 –
7,366 1,080
METRO PERFORMANCE GLASS LIMITED
34



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
COVID-19 impact
The Group applied for the New Zealand
Government wage subsidy prior to
year-end, receiving it in early April.
A total of $0.4 million has been
recognised in ‘Other income’ in
the consolidated statement of
comprehensive income as the amount
offsetting wages paid from the date
of lockdown to balance date. The
corresponding amount receivable
($6.5 million) is included in ‘Other
current assets’.
3.5 FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS
Management determines the
classification of the Group’s financial
liabilities at initial recognition. The
Group’s financial liabilities for the
periods covered by these consolidated
financial statements consist of
overdrafts, loans, trade and other
payables, interest rate swaps and
forward exchange contracts.
The Group measures all financial
liabilities, with the exception of interest
rate swaps and forward exchange
contracts, at amortised cost. Interest
rate swaps and forward exchange
contracts are measured at fair value
with changes in fair value recognised
in ‘Other comprehensive income’.
Financial liabilities measured at
amortised cost are non-derivative
financial liabilities with fixed or
determinable payments that are not
quoted in an active market. Trade and
other payables, bank overdrafts and
loans are classified as financial
liabilities measured at amortised cost.
Fair value measurement of financial
assets and liabilities
The Group’s financial assets and
liabilities by category are summarised
as follows:
Cash and cash equivalents
These are short term in nature and
their carrying value is equivalent to
their fair value.
Trade and other receivables
These assets are short term in nature
and are reviewed for impairment; their
carrying value approximates their fair
value.
Trade payables and borrowings
Trade payables and borrowings are
measured at amortised cost. The fair
value of trade and other payables
approximates carrying value due to
their short-term nature. The carrying
value of the Group’s bank borrowings
also represents the fair value of the
borrowings due to management’s
assessment that the interest rates
approximate the market interest rate
for a commercial loan of a comparable
lending period.
The Group’s activities expose it to a
variety of financial risks: market risk
(including currency risk, fair value
interest rate risk, cash flow interest
rate risk), credit risk and liquidity risk.
The Group’s overall financial risk
management is carried out by a central
finance function (the head office
finance team) under policies approved
by the board of directors. The head
office finance team focuses on the
unpredictability of financial markets and
identifies, evaluates and seeks to hedge
financial risks in close co-operation with
the Group’s operating units to minimise
potential adverse effects on the
financial performance of the Group.
The board approves policies covering
foreign exchange risk, interest rate
risk and credit risk. The Group uses
derivative financial instruments such
as foreign exchange contracts and
interest rate swaps to hedge certain
risk exposures. The Group uses different
methods including sensitivity analysis
in the case of interest rate, foreign
exchange and other price risks and
ageing analysis for credit risk to
measure risk.
Derivatives
The Group holds derivative financial
instruments to hedge its foreign
currency exposure and interest costs.
The Group has designated forward
exchange contracts and interest rate
swaps as cash flow hedge instruments.
Cash flow hedges - forward exchange
contracts and interest rate swaps
Cash flow hedge instruments hedge
the exposure to variability in cash flows
that (i) is attributable to a particular
risk associated with a recognised asset
or liability or a highly probable forecast
transaction and (ii) could affect profit
or loss.
The fair value of financial instruments
traded in active markets by the Group
is based on the current bid price and
for financial liabilities is the current
ask price.
At 31 March 2020 all financial
instruments measured at fair value
(interest rate swaps and forward
exchange contracts) were valued using
valuation techniques where all significant
inputs were based on observable market
data. Accordingly they are categorised
as level 2.
Specific valuation techniques used to
value the Group’s financial instruments
are as follows:
• The fair value of forward foreign
exchange contracts is determined
using forward exchange rates at
the balance sheet date, with the
resulting value discounted back
to present value.
• The fair value of interest rate swap
contracts is determined using
forward interest rates at the balance
sheet date, with the resulting value
discounted back to present value.
These fair values are based on valuations
provided by the Westpac Banking
Corporation and Bank of New Zealand
as at 31 March 2020.
35

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Group’s cash flow hedging reserves relate to the following hedging instruments:
CONSOLIDATED 2020
Spot component
of currency
forwards
$’000
Interest rate
swaps
$’000
Total hedge
reserve
$’000
Opening balance 1 April 2019230 885 1,115
Change in fair value of hedging instrument recognised
in ‘Other comprehensive income’ (OCI)(2,241)900 (1,341)
Deferred tax631 (268)363
Balance at 31 March 2020(1,380)1,517 137
The effects of the foreign-currency-related hedging instruments on the Group’s financial position and performance
are as follows:
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Foreign currency forwards
Carrying amount asset/(liability)1,925 (315)
Notional amount23,597 36,331
Maturity dateApr20-Mar21Apr19-Mar20
Hedge ratio
1
1:11:1
Change in discounted spot value of outstanding hedging instruments since 1 April(2,241)11
Change in value of hedged item used to determine hedge effectiveness2,241 (11)
Weighted average hedged EUR/NZD rate for the year (including forward points)0.5732 0.5728
Weighted average hedged USD/NZD rate for the year (including forward points)0.6487 0.6816
Weighted average hedged EUR/AUD rate for the year (including forward points)0.6154 0.6239
Weighted average hedged USD/AUD rate for the year (including forward points)0.6979 0.7205
1
The foreign currency forwards are denominated in the same currency as the highly probably future inventory purchases (USD and EUR);
therefore, the hedge is 1:1.
The effects of the interest rate swaps on the Group’s financial position and performance are as follows:
CONSOLIDATEDCONSOLIDATED
2020
$’000
2019
$’000
Interest rate swaps
Carrying amount (liability)(2,129)(1,229)
Notional amount35,272 55,272
Maturity dateJul20-Aug23Aug19-Aug23
Hedge ratio1:11:1
Change in fair value of outstanding hedging instruments since 1 April900 299
Change in value of hedged item used to determine hedge effectiveness(900)(299)
Average proportion of debt hedged during the year48.60%57.60%
1. Earn.EiaE1gsb.refgoorft1t .,
36



ANNUAL REPORT 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Financial instruments by category
CONSOLIDATED 2020
Assets at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Assets as per statement of financial position
Cash and cash equivalents14,742 –14,742
Derivatives - foreign exchange contracts–1,982 1,982
Derivatives - interest rate swaps–––
Trade and other receivables33,294 –33,294
Balance at 31 March 202048,036 1,982 50,018
CONSOLIDATED 2019
Assets at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Assets as per statement of financial position
Cash and cash equivalents5,488 – 5,488
Derivatives - foreign exchange contracts– 172 172
Derivatives - interest rate swaps– – –
Trade and other receivables38,839 – 38,839
Balance at 31 March 201944,327 172 44,499
CONSOLIDATED 2020
Liabilities at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Liabilities as per statement of financial position
Cash and cash equivalents–––
Trade and other payables excluding non-financial liabilities21,969 –21,969
Provisions4,543 –4,543
Derivatives - foreign exchange contracts–57 57
Derivatives - interest rate swaps–2,129 2,129
Interest-bearing liabilities81,630 –81,630
Lease liabilities59,485 –59,485
Balance at 31 March 2020167,627 2,186 169,813
37