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Metroglass Annual Report for the year ended 31 March 2022

Annual Report21 June 2022MPGReal Estate

2022 Annual Report
A CLEARER


VIEW EMERGES

Commercial Project Corner Joint Window

A PROBLEM
-

SOLVING

APPROACH

Disruptive

international

shipping has

required us to

be focused to

maintain supply

throughout our

network.

Bulk Glass Storage

with full PPE

2022 Annual Report

A Clearer View Emerges
PEOPLE

REMAIN

OUR

PRIORITY

Our investments

in safety, wellbeing

and training mean

that our people

have the necessary

knowledge,

equipment and

processes to

produce and

install high-quality

products safely.

Specialist Glass Installation Equipment, this image 1.1 tonne double glazed unit

1

DELIVERING
DESPITE

DISRUPTIONS

Our customer

surveys continue

to show positivity

and strength

as we work with

our customers

in a challenging

and disruptive

environment.

Residential Home with Low E Double Glazing

2

2022 Annual Report

A Clearer View Emerges
INVESTING

IN OUR

FUTURE

Our strategy is

underpinned by

investing in world-

class equipment

that produces high-

quality and high-

performance glass

products. Metroglass’

range, capability

and expertise mean

it is well positioned

to deliver on the

upcoming building

insulation standard

changes in FY23 for

both New Zealand

and Australia.

Furnace Operating,


Producing Toughened Safety Glass

3

Residential Home,
Toughened Safety Glass Shower Screen

4

2022 Annual Report

Our Year in Review6
Chair and CEO Report8

How we Operate12

New Zealand Market Review14

Australian Glass Group16

Our Strategy18

ESG / Sustainability20

Board of Directors22

Senior Leadership Team24

Financial Statements 27

Notes to the Financial Statements33

Independent Auditor’s Report62

Corporate Governance 68

Remuneration Report76

Statutory Information80

Company Directory85

CONTENTS

Contents

5

OUR YEAR
$

236.1

m

GROUP REVENUE

(FY21: $232.3m)

Net Debt

(FY21: $48.0m)

$

52.3

m

Group profitability significantly impacted by lockdowns

in New Zealand and higher supply chain costs.

CAPEX

(FY21: $6.0m)

$

10.5

m

Group EBIT

1

(FY21: $17.2m)

$

5.9

m

Leverage Ratio

2

(FY21: 1.7x)


3.78

x

1 Earnings before interest, tax and significant items2 Net debt to EBITDA, measured on a pre-IFRS-16 basis

AUSTRALIAN GLASS

GROUP REVENUE

NEW ZEALAND

REVENUE

$

178.0

m

(1%)

$

58.1

m

+11%

EBIT

1


$

7.4

m

(61%)EBIT

$

(0.3)

m

+57%

6

2022 Annual Report

Customer survey results show
sustained satisfaction

1

Our Year in Review

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

AUSTRALIAN GLASS GROUP

DOUBLE GLAZING SALES

GROWTH

GROWTH IN

RETROFIT

+

16%

+

14%

DEC 2021MAY 2021NOV 2020JUN 2020NOV 2019JUN 2019DEC 2021MAY 2021NOV 2020JUN 2020NOV 2019JUN 2019

7.3

7.6

7.3

7.9

7.8

8.1

8.08.0

8.1

7.7

7.8

7.7

New ZealandAustralian Glass Group

IN REVIEW

7

For a second successive
year the pandemic has had

a material impact on the

profitability of the company.

While COVID-19 has caused disruption,

a range of other ongoing external

pressures have also affected

our activities during the year and

restricted our ability to operate

efficiently. We have taken steps to

manage and mitigate these challenges

in accordance with our strategy of

customer focus, quality and efficiency.

We have managed to service our

customers well during these difficult

times. We haven’t resolved everything

yet, however. Heading into the new

financial year, we’re still experiencing

intermittent staff shortages due

to Omicron, broader labour market

challenges are apparent, input costs

are rising and there is still the potential

for continued shipping disruption.

However, operational pressures are

now easing, customer demand remains

robust, and to address cost pressures

significant adjustments to pricing have

been implemented. Further changes are

under consideration.

Our strategic actions and investment

in double glazing processing and high-

performance glass have prepared us

for the upcoming changes in residential

building regulation in both New Zealand

and Australia. We look forward to

maintaining this momentum in FY23

and beyond.

Restrictions Severely Impact

Performance

All of our processing plants in

New Zealand were locked down during

the typically busy August period, with

the Auckland closure of our main facility

extending into mid-September. As in

previous lockdowns, we continued to pay

our people, provided wellbeing support,

stayed connected with customers, and

undertook a range of actions to minimise

the financial impacts.

In contrast, Australian Glass Group

(AGG) were able to maintain operations

throughout the year but were impacted

by reduced employee availability and the

fast-evolving state-by-state testing and

isolation requirements that affected

manufacturing efficiency.

Global supply chains have been strained

for most of the year. Our agile approach

in balancing the available supply to our

national demand footprint and increases

in our safety levels has enabled us to

manage stock volatility without significant

difficulties for our customers.

The rapid increases in input costs

highlighted in the first half have continued

and have been addressed in significant

cumulative price increases in New Zealand

and in Australia. However, the lag in their

effective dates means that this will

only be fully recognised in the coming

financial year.

PETER GRIFFITHS

Chair

SIMON MANDER

CEO

CHAIR

AND CEO

REPORT

8

2022 Annual Report

Financial Performance
The group achieved revenue of

$236.1 million (2% higher than the

prior year) supported by strong growth

in Australia and solid activity before and

after the lockdown period in New Zealand.

Profitability for the group was significantly

impacted by higher input costs, supply

chain disruptions and the New Zealand

lockdown. Group Earnings Before

Interest and Tax (EBIT) reduced by 66%,

to $5.9 million. Reported Net Loss After

Tax was ($0.5) million.

The fourth quarter of the financial year

improved over the prior comparable

period as we began regaining momentum

in performance post the recent Omicron

outbreak. Managing cost pressures

remain a priority, and we expect margins

to improve as the implemented price

increases flow into FY23.

Strategic Choices Set Up

Metroglass for the Future

This year we have continued to strengthen

Metroglass’ strategic position with

targeted investments that deliver

increased capability, capacity and quality.

In New Zealand, our investment ensures

we have strong capabilities ready in

place for the building insulation standard

changes effective from November 2022.

AGG’s capital expenditure was focused on

operational efficiency to support double-

glazing sales growth ahead of National

Construction Code changes coming into

force later in FY23.

The group also progressed well

with projects that deliver sustained

improvements in customer service across

all of our channels. This has resulted in

record levels of customer satisfaction

in New Zealand, with our most recent

customer survey the highest rating since

we started surveying in 2019. In AGG,

customers continue to rate us highly.

Group revenue supported by

strong growth in Australia,

but impacted by the

New Zealand lockdowns

$236m

Chair and CEO Report

+2%

Group EBIT declined from

$17.2 million (restated

1

) to

$5.9 million primarily as a

result of New Zealand’s

lockdown in August

and September, higher

glass and freight costs,

and freight detention

charges. These increased

supply chain costs

were severe and had an

immediate effect on gross

profit. Market pricing

adjustments have been

implemented to recover

margins; however, these

are not fully recognised in

FY22. Pleasingly, AGG’s EBIT

improved by $0.4 million

compared to FY21. Despite

an increase in sales and

gross profit, it was largely

offset by an increase in

COVID-19 restriction and

supply chain-related costs.

17.2

New ZealandAustralia

4.5

1.2

0.9

7.2

1.3

0.7

4.0

3.6

5.9

FY21 EBIT

FY22 EBIT

COVID-19 impact:

NZ Govt wage subsidy rent

relief, and sales impact

Freight detention costs

Change in net revenue

Change in gross profits %

All expenses and

other income

Net restatement

Increase in net revenue

and gross profit

Increase in expenses

and other

Group EBIT

1 Certain comparative amounts have been restated, refer note 6:7

9

Our strategic programme
continues to unlock the

potential of the business,

with investments in capability

and quality as well as a

strong focus on improving

our offering to customers.

Low E Double Glazing, allowing large walls of glass to maximise open living.

10

2022 Annual Report

For some time, the board has had
a clear focus on debt reduction,

and this has placed us in a strong

position to manage the impacts

resulting from the pandemic.

Capital Management

For some time, the board has had a

clear focus on debt reduction, and this

has placed us in a strong position to

manage the impacts resulting from the

pandemic. During the year, we continued

to invest in planned capital expenditure

and increased stock levels, which resulted

in our net debt increasing from $48.0 million

to $52.3 million.

Consequently, Metroglass’ net debt to

EBITDA ratio rose to 3.78x at 31 March 2022.

In our FY21 Annual Report we outlined our

capital management approach. We continue

to hold to this with free cash prioritised

towards essential capital expenditure and

reducing debt to a point when consideration

can be given to the resumption of dividends.

It remains the board’s intention to resume

a dividend programme as soon as business

conditions allow.

Outlook

We have seen residential consenting

actively in New Zealand reach record levels.

We expect building activity to remain at

current levels for the balance of the year,

given the capacity constraints in the

industry. Similar conditions are expected

in Australia as strong approvals and

a capacity-constrained industry have

elongated the pipeline of construction.

The pandemic continues to drive an

uncertain outlook in the short to medium

term, and there is well-publicised risk

of ongoing supply chain delays, labour

shortages, increasing interest rates and

cost inflation. Our focus will be on gross

margin improvement, to manage the

inflationary pressures in our supply chain

and the constraints on labour that are

not expected to improve in the near term.

Our strategic programme continues

to unlock the potential of the business,

with investments in capability and quality

as well as a strong focus on improving

our offering to customers. These will all

create value opportunities for the business

alongside building code regulation change

in our markets.

In what has been another incredibly

challenging year, we’d like to take this

opportunity, on behalf of the board

and management team, to thank our

employees, customers, suppliers

and shareholders for their continued

commitment and support.

PETER GRIFFITHS

Metroglass Chair

SIMON MANDER

Metroglass CEO

Chair and CEO Report

Church Artwork Digitally Printed

onto 4m Glass Panes.

11

Source float
and specialty

glass such as

Low E from

international

suppliers

Processing

Cutting

Edgework

Shapes

Toughening

Heat strengthening

Heat soaking

Laminating

Digital printing

Products

Safety & security glass

Double glazing

Triple glazing

Frameless glass balustrades

Frameless glass showers

Glass canopies

Facade glass

Glazing services

Glass engineering services

Making the most of our competitive advantages

Customer Service

Dedicated customer service experts

provide technical support and advice

to customers.

Manufacturing Complexity and Scale

Significant investment in processing

automation delivers price and range

advantage with short lead times.

Distribution Footprint

A powerful distribution network provides

local connection supported by an

international supply chain. A total of

7 processing sites spanning Australia and

New Zealand, and 12 branches or retail sites

geographically spread across New Zealand.

Glass Engineering Services

Our team of technical experts solve

complex glass design problems that

meet stringent compliance standards,

for our customers.

Extensive Range

Market-leading technology and broad

product range are underpinned by

strong relationships with leading global

glass manufacturers that enables scale,

capacity and innovation.

In-house Glazing

215 glazing employees, plus additional

contractors, means aligned installation

support to meet customers’ needs.

HOW WE

OPERATE

12

2022 Annual Report

Markets
NEW ZEALAND

Residential

Retrofit

double

glazing

Commercial

glazing

AUSTRALIA

Residential

Australia revenue

+11%

$58.1m

New Zealand revenue

(1%)

$178.0m

AUCKLAND

BAY OF


PLENTY

WHANGÃREI

HAMILTON

NEW PLYMOUTH

NAPIER

PALMERSTON NORTH

NELSON

CHRISTCHURCH

CROMWELL

DUNEDIN

INVERCARGILL

LOWER HUTT

WELLINGTON

Metro Performance Glass is at the

forefront of providing high-performance

glass and industry-leading service to

Australasian residential and commercial

glazing markets. We have an extensive

network of seven Australasian

processing plants and

12 distribution or

retail sites across

New Zealand.

882

Total employees

in New Zealand

227

Total employees

in Australia

— METRO DISTRIBUTION SITES

— METRO PROCESSING SITES

MELBOURNE

SYDNEY

TASMANIA

How we Operate

13

NEW ZEALAND
MARKET

REVIEW

Metroglass is the

largest glass processor in

New Zealand and operates

a diversified channel

strategy across residential,

commercial glazing and

Retrofit. Our four regionally

spread processing plants

and 12 Metro Direct

branches allow us to provide

the local connections and

service that our customers

value, backed by a resilient

international network.

Strong activity before and after the

lockdown period has delivered a solid

revenue of $178.0 million, $1.8 million

(or 1%) lower than the prior year.

However, disrupted supply chains,

elevated input costs and the lockdown

period have significantly impacted

profitability as EBIT declined to

$7.4 million (FY21: $18.7 million).

The business introduced a series of

price increases to account for the

inflationary factors; however, these

will not be fully realised until FY23.

In FY22, gross profit margin declined

from 48.0% to 43.3%.

Hotel Canopy Laminated Toughened

Safety Glass with PET Coloured Films.

14

2022 Annual Report

This is the second year that a lockdown
has significantly impacted the New Zealand

business, compounding the affects of

an already strained supply chain and

dampening momentum across the industry.

Our focus has remained on strong and clear

communication with customers, sufficient

stock levels, and operational stability that

provides certainty to the market.

The recent Omicron outbreak has placed

pressure on processing facilities with

elevated absenteeism, particularly in

February and March 2022. This is now

beginning to abate. Recruitment remains

a key focus this year in order to maintain

efficiency across the business.

The Residential segment delivered

revenue of $115.6 million, 2% below the

prior year. Our efforts to diversify the

customer portfolio are progressing well

and are reflected in a stable market share.

The lockdowns and wider supply chain

disruptions created a series of project

delays in the commercial glazing segment

this year, as revenue declined 9% to

$33.5 million.

In our Retrofit segment we have continued

to see strong growth, with revenue

increasing 16% to $28.9 million.

Metroglass is well positioned

for upcoming changes to building

insulation standards in New Zealand.

In late November 2021 the Ministry for

Business, Innovation and Environment

(MBIE) announced that they would be

introducing changes to the minimum

thermal performance requirements

for compliance with the Building Code

Clause H1 Energy Efficiency.

The changes introduce six new climate

zones to better reflect the specific

weather experienced in different parts

of New Zealand. This ensures buildings

are built with specific minimum insulation

requirements for their local climate.

This is a significant change and will almost

universally require the use of Low Emissivity

(Low E) glass in windows. There is a one-

year transition period for the sector to

understand and prepare for the changes

before they become mandatory from

November 2022.

Metroglass passionately supports this

change to achieve warmer, healthier and

drier homes in New Zealand. The business

has made significant investments in Low E

technology and processing capability in

recent years. We have an experienced team,

world-class facilities, and a range of high-

performing Low E glass specifications,

which means we are well positioned to

service this evolving market.

New Zealand Market Review

(1%)

(9%)(16%)(2%)

FY22 revenue by segment Segmental split by revenue

Retrofit NZCommercial Glazing NZResidential NZ

$118.2m

$115.6m

$36.8m

$33.5m

$24.9m

$28.9m

FY21FY22

Customer survey result

8.1/10

1

1 Survey question: “On a scale of 1 to 10, how likely are you to

recommend Metroglass to a friend or colleague?”

Residential NZ 65%

Commercial Glazing NZ 19%

Retrofit NZ 16%

NZ revenueNZ EBIT

$

178

m

$

7.4

m

(1%)(61%)

15

The transformation of
Australian Glass Group (AGG)

into a specialist double-

glazing business has gained

momentum through FY22

despite the headwinds of

COVID-19 restrictions,

disruptions to international

supply chains and reduced

employee availability.

AGG’s three processing plants servicing

the south-east Australian markets have

operated well, managing the evolving state

requirements, and limiting impacts to

its customers.

Despite the disruptive environment, AGG

generated strong sales and delivered an

11% increase in revenue to $58.1 million.

AGG’s EBIT loss of $0.3 million improved

$0.4 million on the prior year and is a

marked improvement on FY19.

Market pricing in Australia has trended

positively, in-part reflecting the cost

inflation pressures but also in recognition

of the increasing value of glass

throughout the industry. Gross Margin

improved to 28.4% from 23.7% supported

by the increase in pricing and solid

operational disciplines.

Throughout the year, market conditions

have remained positive in the construction

sector, supported by a number of state

and federal initiatives.

AUSTRALIAN

GLASS

GROUP

16

2022 Annual Report

Australian Glass Group
Late in the financial year New South Wales

was once again impacted by large-scale

flooding, disrupting the supply chain.

Pleasingly, activity in the State has now

begun to rebound.

As AGG enter the next phase of their

turnaround strategy, their focus remains

on consistent operating performance,

profitability and benefiting from regulatory

changes that will accelerate the adoption

of double-glazing in the south-east of

Australia. In FY22, double-glazing sales

grew 14%.

AGG prepare for growth in double

glazing adoption as National

Construction Code changes.

The growing use of double glazing in south-

east Australia, supported by upcoming

National Construction Code (NCC) changes,

continues to underpin our revenue growth

and future strategy.

The proposed NCC changes in Energy

Efficiency are due to be released during

FY23 and will impact AGG and the Australian

glazing Industry.

This change increases the thermal

performance requirements for new

residential buildings and will result in a

minimum standard of double glazing in

colder climate zones, for example Canberra,

the majority of Victoria and all of Tasmania.

Currently compliance with the industry

standard and construction code is satisfied

through single glazed windows. Additionally,

where standard aluminium frames are used

in colder climates (which is the majority

of our market), there will also be higher

demand in more advanced high Low E

double glazing.

FY22 revenue growth

AGG revenueAGG EBIT Loss

Australian Glass Group

$58.1m

$52.5m

FY21FY22

11%

Customer survey results

Double glazing growth FY22

2

7.7/10

1

14%

1 Survey question: “On a scale of 1 to 10, how

likely are you to recommend Metroglass to

a friend or colleague?”

2 As measured by double glazing revenue

(FY21 9%)

+11%

+57%

$

58.1

m

$

(

0.3

)

m

Insulglass Low E Plus® allowing high glass-

to-wall ratios and yet significant Insulation

with both high clarity and visible light.

17

OUR
STRATEGY

SAFETY

Working safe,

living well

PRODUCT AND

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

18

2022 Annual Report

Our Strategy
1 Question: “On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?

• NZ market share in the key Residential segment for FY22

was stable compared to FY21, driven by a focus on customer

retention and customer acquisition strategies

• Conducted our sixth group-wide customer survey, with

New Zealand achieving their highest result with 8.1 out of 10

1

• AGG results remained strong at 7.7 out of 10

• Further developed the AGG business as a leading supplier

of high-performance double glazing in south-east Australia,

positioning well for the upcoming National Construction

Code (NCC) changes that will necessitate the use of double

glazing in colder climate

Deliver market-leading customer

service to our customers

Quality and service are key differentiators

for our customers and critical to their

success and profitability.

1

• Implemented an environmental and health monitoring

programme for capturing baseline, new and ongoing data for

environmental and personal exposure to job- related health

hazards to develop an informed hazard management plan

• Continued the implementation of our online safety

management platform for capturing and reporting safety

and health data to facilitate effective risk management

through measurement and recording of KPIs, action plans

and compliance assurance

• We continue to support, upskill and build capability in our

production and glazing, with more than 79 apprentices

enrolled. In FY22, 8 employees completed their qualification

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.

2

• Retrofit, our direct-to-consumer business, again

strengthened its channel leadership position with

revenue increasing 16% as consumers spent more

on home renovation

• Provided commercial and technical leadership through

the H1 Building Code industry consultation process,

culminating in a number of changes announced by the

Ministry of Business, Innovation and Environment (MBIE)

that recognises the significant thermal performance

improvements available through the use of high-performing

Low E glass

• AGG continued to grow their high-performance double-

glazing product offering, increasing double-glazing sales

by 14%

Uphold our scale strength through

product and 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 operate 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.

3

• Global supply chain disruption has been an ongoing challenge

across both New Zealand and Australia. Through our

advanced planning and logistics capability, we have ensured

our plants have maintained operations without significant

disruption to customers

• Reduced per-unit energy and water consumption across

our manufacturing footprint through targeted capital

investments and focused lean manufacturing problem-

solving techniques

• Successfully implemented our capital investment

programme, improving capability, quality and capacity.

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.

4

19

ESG/
SUSTAIN-

ABILITY

As one of Australasia’s

leading manufacturers and

installers of double-glazing

and glass products, it is

important that we take an

active role in understanding

our environmental and

social impact. As part

of our purpose to make

lives brighter every day,

the group is committed

to sustainability within

the environment in which

we operate and the

communities we serve.

We know enhancing our strong

environmental, social and governance

credentials will help us create long-term

value and this year we have continued to

build on our approach to Environmental,

Social and Governance (ESG) reporting.

Lamination Line Cleaning

and Quality Control

20

2022 Annual Report

ESG / Sustainability
Environmental

• Launched the group’s first Environmental

Sustainability Policy.

• 99% of Metroglass New Zealand’s glass

processing waste is recycled for use

in other products, such as insulation.

• Key resources in the processing of glass

are electricity and water, and we are

committed to making efforts to reduce

our consumption.

• Water is reused in our production

process, and rainwater is collected

from our roof at our Highbrook site.

• Approximately 13% of the electricity

used at AGG’s Victoria plant is from

solar panels on the factory roof.

• Variable Speed Drives (VSD) have been

installed on motors, which is expected

to reduce electricity consumption by

up to 40% of certain furnace assets.

• We have started to develop our first

Group Carbon emission footprint.

• We are collaborating with our

suppliers on initiatives to reduce

the environmental impact from

within our supply chain.

Social

• Our culture is reflective of our core

values: “The Metro Way”:

• The safety and wellbeing of our people

are fundamental and are underpinned by

a clear set of principles and a workplan

to embed a strong safety and wellbeing

management system. Our key measure

of TRIFR

1

continues to trend lower,

the Group measure was 5.89 in FY22

(FY21: 5.48; FY20: 8.03).

• Health and wellness checks were offered

to all NZ employees during the year.

• All Metroglass New Zealand

employees are offered free health

insurance as a standard part of

their remuneration package.

• 79 apprentices enrolled at

31 March 2022; 8 qualified in FY22.

• A flexible working policy has

been introduced.

• Metroglass is committed to providing a

supportive environment throughout the

company, fostering diversity and inclusion:

−33% female representation on

the board

−33% female representation on the

Senior Leadership Team (SLT).

• We are committed to all employees

and contractors being paid a fair

and equitable wage.

• We are providing training and

guidance to hiring managers focused

on eliminating unconscious bias from

our recruitment processes and systems.

Governance

• We regularly review our corporate

governance systems and always look

for opportunities to improve, complying

with the recommendations of the

NZX Corporate Governance Code in

all material respects.

• The performance of the board is

independently reviewed to ensure

the collective and individual directors

are performing to a high standard.

The last review was carried out by

Propero Consulting in 2021, and

a skills matrix is presented in the

Annual Report on p. 70.

• The board has initiated workstreams

to enhance our Enterprise Risk

Management frameworks, focused

on the standards set by the External

Reporting Board (XRB) and the Task

Force for Climate-related Disclosures

(TCFD) recommendations.

Female representation on

board and SLT

33%

1 Total Reportable Incident Frequency Rate (TRIFR) is measured by calculating the number of medical treatment cases, and lost-time injuries per 200,000 hours worked.

SAFETY

Working safe,

living well

PRODUCT AND

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

21

JENN BESTWICK
Independent, Non-Executive Director,

Member of the Audit and Risk Committee

Appointed: May 2022

Jenn’s background is in strategy and

organisational performance and she

has previously held a number of senior

management roles and performed

various reviews for government agencies.

Jenn currently works across sectors

as diverse as science and Innovation,

education, tourism, engineering and

environment. She is also the Chair of

Tonkin + Taylor Group Limited, Chair

of the Tertiary Education Commission,

and holds directorships for Invercargill

City Holdings Limited and Antarctica

New Zealand. Jenn has a Bachelor of

Laws from the University of Nottingham,

UK, and is a Member of the Institute

of Directors.

PETER GRIFFITHS

Independent, Non-Executive Chair

and Member of the People and

Culture Committee

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) from Victoria University

of Wellington.

JULIA MAYNE

Independent, Non-Executive Director,

Member of the Audit and Risk Committee

Appointed: September 2021

Julia is Sydney based and is currently

the Head of Commercial at Scottish

Pacific Business Finance. Prior to this,

she completed several consulting,

programme management or Acting CEO

roles focused on business improvement.

From 2001 to 2015, Julia held senior

financial leadership positions across

the Fletcher Building Group, including

the roles of General Manager Finance

– Building Products division, the CFO of

the Crane Division, and Divisional Finance

Manager – Stramit Building Products. Julia

is a qualified CPA, has a CPA MBA from

Deakin University, a Bachelor of Commerce

(Honours) from the University of NSW

and a Bachelor of Commerce from the

University of Wollongong.

BOARD OF

DIRECTORS

22

2022 Annual Report

Board of Directors
GRAHAM STUART

Independent, Non-Executive Director,

Chair of the Audit and Risk Committee

Appointed: December 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 Northwest Healthcare Property

Management Limited. He 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.

MARK EGLINTON

Independent, Non-Executive

Director, Chair 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. 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.

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

Managing Director and CEO of Vulcan

Steel Limited, a dual-listed 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) and Ridley

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 from Massey

University and a Bachelor of Science

from Victoria University of Wellington.

23

SENIOR
LEADERSHIP

TEAM

24

2022 Annual Report

SIMON MANDER
Chief Executive Officer

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 ten years.

Simon has a trade background in aircraft

engineering and holds a Bachelor of

Engineering (Mech) 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

Brent was appointed as Chief Financial

Officer in January 2020. He 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 to Fonterra Brent worked

within New Zealand and internationally

in other industries including brewing,

management consulting, electricity

generation and gold mining.

Brent is a Chartered Accountant and holds

a Master of Business Administration from

the University of Canterbury.


ROBYN GIBBARD

General Manager

Upper North Island

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.

ANDREAS PAXIE

General Manager

Lower North Island

Andreas leads the Lower North Island

region and joined the company in March

2022. He has a strong background in

commercial sales, project management

and general management across a wide

variety of industries and was most

recently National Sales Manager for

Securely and General Manager for the

Lower North Island for Wormald. Andreas

has also been a senior leader for a diverse

range of other companies including IBM,

Pacific Wallcoverings and ACCO brands.

He holds a Bachelor of Technology

(Operations Research) from Massey

University, and a postgraduate Diploma in

Business from Henley Management College.


NICK HARDY-JONES

General Manager South Island

Nick leads the South Island region for

Metroglass and has been with the company

since 2016. He previously spent five years

in leadership roles within Metroglass’

South Island Commercial and Glazing

Businesses. Prior to working in the glass

industry, Nick held category, product

and sales management roles within the

commercial and residential roofing and

cladding industries. He holds a Bachelor

of Commerce from the University

of Canterbury.


AMANDEEP KAUR

Group Safety and Wellbeing Manager

Amandeep leads Group Health and

Safety across both our New Zealand and

Australia businesses, responsible for the

development and implementation of our

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 as well as a

Graduate Diploma in Occupational

Health and Safety.

DAYNA ROBERTS

Human Resources Director

Dayna leads Metroglass’ Human Resources

team nationally. She has over 10 years’

experience in HR, Talent and Recruitment,

spending eight years at Fletcher Building

before commencing with Metroglass. Dayna

holds a Bachelor of Business in Marketing

and Management and an NZ Diploma in

Business from the Auckland University

of Technology.


BARRY PATERSON

General Manager Commercial

Glazing and Technical

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 and a Postgraduate Diploma

in Marketing from Lincoln University.


NICK JOHNSON

Chief Information Officer

Nick joined Metroglass’ Senior

Leadership Team as Chief Information

Officer in December 2017. He has broad

experience in strategic and operational

management, having held several senior

roles in quality assurance, manufacturing

and IT.

With over 18 years’ experience in IT

professional services organisations,

Nick has worked closely with a variety of

different industries across New Zealand,

Australia and the Asia-Pacific region.

He has experience working in primary

(meat, dairy, produce, wine and forestry),

manufacturing (food, pharmaceuticals

and engineering), supply chain, FMCG,

retail and utilities industries. Nick has also

worked with not-for-profit organisations,

including charities.

He has a Bachelor of Science (Honours)

in Chemistry and is a graduate of the

Royal Society of Chemistry.

Senior Leadership Team

25

26
2022 Annual Report

Non-GAAP Financial Information

NON-GAAP FINANCIAL INFORMATION

Metroglass’ standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP) is profit for the

period, 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: FY21 gain on disposal of vehicles under sales and

leaseback agreement.

* EBIT before significant items: EBIT less significant items, being: FY21 gain on disposal of vehicles under sales and leaseback agreement.

* NPATA: Profit for the period before the amortisation of acquisition-related intangibles and its associated tax effect.

GAAP TO NON-GAAP RECONCILIATION

Full year to 31 March

FY22

($M)

FY21

($M)

Profit for the period before significant items(0.5)7.2

Add: Gain on disposal of vehicles under sale and leaseback agreement– 1.0

Profit for the period (GAAP)(0.5)8.1

Add: Taxation expense0.0 3.3

Add: Net finance expense6.3 6.8

Earnings before interest and tax (EBIT) (GAAP)5.9 18.2

Add: Depreciation and amortisation18.7 20.3

EBITDA24.6 38.5

EBIT (GAAP)5.9 18.2

Less: Gain on disposal of vehicles under sale and leaseback agreement– (1.0)

EBIT before significant items5.9 17.2

EBITDA24.6 38.5

Less: Gain on disposal of vehicles under sale and leaseback agreement– (1.0)

EBITDA before significant items24.6 37.5

27
Consolidated Statement of Comprehensive Income28

Consolidated Statement of Financial Position29

Consolidated Statement of Changes in Equity30

Consolidated Statement of Cash Flows31

Notes to the Consolidated Financial Statements 33

1. Basis Of Preparation33

2. Financial Performance35

3. Working Capital38

4. Long-Term Assets47

5. Debt & Equity52

6. Other56

CONTENTS

OUR

RESULTS

Transport Hub Lift Shaft, Laminated

Toughened Safety Glass with RED Pet Film

28
2022 Annual Report

NOTESCONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

(Restated)

1

Sales revenue2.1236,063 232,274

Cost of sales(142,472)(133,427)

Gross profit2.193,591 98,847

Distribution and glazing-related expenses(45,441)(43,361)

Selling and marketing expenses(13,160)(13,267)

Administration expenses(32,446)(32,429)

Other income and gains and losses2.63,367 7,421

Profit before significant items, interest and tax5,91117,211

Significant items2.4–951

Profit before interest and tax5,91118,162

Finance expense(6,327)(6,768)

(Loss)/Profit before income taxation(416)11,394

Income taxation (expense)6.1(43)(3,289)

(Loss)/Profit for the year(459)8,105

Other comprehensive income

Items that may be reclassified to profit or loss in the future:

Exchange differences on translation of foreign operations(474)530

Cash flow hedges (net of tax)612(1,151)

Total comprehensive (loss)/ income for the year

attributable to shareholders(321)7,484

Earnings per share

Basic and diluted earnings per share (cents per share)2.5(0.2)4.4

1 Certain comparative amounts have been restated, refer note 6.7

The Board of Directors authorised these financial statements for issue on 22 June 2022

For and on behalf of the Board:

Peter Griffiths Graham Stuart

Chair Director

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Consolidated Statement of Comprehensive Income

for the year ended 31 March 2022

29
NOTESCONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

(Restated)

1

ASSETS

Current assets

Cash and cash equivalents13,064 7,530

Trade receivables3.134,957 33,978

Inventories3.227,40222,379

Derivative financial instruments3.568 136

Other current assets2,570 2,280

Total current assets78,06166,303

Non-current assets

Property, plant and equipment4.154,748 52,467

Right-of-use assets4.270,50550,626

Deferred tax assets6.210,965 10,638

Financial assets at fair value through profit or loss3.52,098 2,576

Intangible assets4.354,710 56,632

Other non-current assets1,051–

Total non-current assets194,077 172,939

Total assets272,138239,242

LIABILITIES

Current liabilities

Trade and other payables3.330,62627,862

Deferred income3.42,608 2,076

Income tax liability518 445

Derivative financial instruments3.5274 374

Lease liabilities5.26,535 6,559

Provisions3.61,920 1,724

Total current liabilities42,48139,040

Non-current liabilities

Interest-bearing liabilities5.165,319 55,519

Derivative financial instruments3.5274 1,575

Lease liabilities5.274,745 54,042

Provisions3.63,790 3,665

Total non-current liabilities144,128114,801

Total liabilities186,609 153,841

Net assets85,529 85,401

Equity

Contributed equity5.3307,198 307,198

Retained earnings(51,735)(51,571)

Group reorganisation reserve6.3(170,665)(170,665)

Share-based payments reserve6.31,366 1,212

Foreign currency translation reserve41 515

Cash flow hedge reserve(676)(1,288)

Total equity85,529 85,401

1 Certain comparative amounts have been restated, refer note 6.7

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Consolidated Statement of Financial Position

at 31 March 2022

30
2022 Annual Report

CONSOLIDATED 2022

Notes

Contributed

Equity

$’000

Reserves

$’000

Retained

earnings

$’000

Total

$’000

Opening balance at 1 April 2021307,198 (170,226)(51,571)85,401

(Loss)/Profit for the year––(459)(459)

Movement in foreign currency translation reserve–(474)–(474)

Other comprehensive income for the year–612–612

Total comprehensive income/(loss) for the year–138(459)(321)

Dividends paid––––

Expiry of share-based payments5.2–(294)294–

Movement in share-based payments reserve6.3–448 –448

Total transactions with owners, recognised directly in equity–154 294448

Balance at 31 March 2022307,198 (169,934)(51,735)85,529

CONSOLIDATED 2021 (RESTATED)

1

Notes

Contributed

Equity

$’000

Reserves

$’000

Retained

earnings

$’000

Total

$’000

Opening balance at 1 April 2020, as previously reported307,198 (169,886)(61,469)75,843

Fair value restatement of financial asset6.7– – 1,7931,793

Restated opening balance at 1 April 2020307,198(169,886)(59,676)77,636

Restated profit for the year6.7– – 8,105 8,105

Movement in foreign currency translation reserve– 530 – 530

Other comprehensive income /(loss) for the year– (1,151)– (1,151)

Total comprehensive income/(loss) for the year– (621)8,1057,484

Dividends paid– – – –

Movement in share-based payments reserve6.3– 281 – 281

Total transactions with owners, recognised directly in equity– 281 – 281

Balance at 31 March 2021307,198 (170,226)(51,571)85,401

1 Certain comparative amounts have been restated, refer note 6.7

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Consolidated Statement of Changes in Equity

for the year ended 31 March 2022

31
CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

(Restated)

1

Cash flows from operating activities

Receipts from customers235,939 234,450

Payments to suppliers and employees(218,051)(198,523)

Government wage subsidy and grants received2,470 6,510

Interest received100 100

Interest paid(3,448)(3,094)

Interest paid on leases(3,139)(3,064)

Income taxes paid(617)(7,532)

Net cash inflow from operating activities13,254 28,847

Cash flows from investing activities

Proceeds from sale of property, plant and equipment358 3,714

Payments for property, plant and equipment(10,399)(5,793)

Payments for intangible assets(89)(225)

Net cash outflow from investing activities(10,130)(2,304)

Cash flows from financing activities

Lease liability principal payments(6,940)(5,789)

Drawdown/ (repayment) of borrowings (net)10,257 (31,146)

Drawdown of other financing(803)3,632

Other financing principal payments–(445)

Net cash inflow/(outflow) from financing activities2,514 (33,748)

Net increase/(decrease)5,638 (7,205)

Cash and cash equivalents at the beginning of the year7,530 14,742

Effects of exchange rate changes on cash and cash equivalents(104)(7)

Cash and cash equivalents at the end of the year13,064 7,530

1 Certain comparative amounts have been restated, refer note 6.7

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

The table below sets out the annual movement in net debt:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Opening balance of interest-bearing liabilities at 1 April55,519 81,630

Drawdown/ (repayment) of borrowings (net)10,257 (31,146)

Other financing movement (net)(803)3,187

Foreign exchange and other adjustments346 1,848

Closing balance of interest-bearing liabilities at 31 March65,319 55,519

Less: cash and cash equivalents(13,064)(7,530)

Net debt at 31 March52,255 47,989

Consolidated Statement of Cash Flows

for the year ended 31 March 2022

32
2022 Annual Report

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Reconciliation of profit/(loss) after income tax to net cash inflow from operating activities

(Loss)/profit for the Year(459)8,105

Adjustments for:

Depreciation and amortisation18,687 20,304

Property, plant and equipment (gain)/ loss on disposal–(951)

Share-based payments expense448 281

Movement in deferred tax(751)(1,942)

Movement in credit loss provision(635)(1,435)

COVID-19 rent relief(138)(367)

Surplus/(loss) on disposal of assets(42)324

Movement in financial asset at fair value through profit or loss and associated non-cash income(789)(583)

Lease modification(222)–

Other451211

17,009 15,842

Impact of changes in working capital items

Trade and other receivables(420)1,243

Inventory(5,073)2,072

Other current assets(293)5,732

Trade accounts payable and employee entitlements1,8172,608

Deferred income533 (5,293)

Interest accruals(69)184

Provisions195 675

Income tax liability14 (2,321)

(3,296)4,900

Net cash inflow from operating activities13,254 28,847

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Consolidated Statement of Cash Flows (continued)

for the year ended 31 March 2022

Notes to the Consolidated Financial Statements
33

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.

Basis of preparation

These consolidated financial statements have been approved for issue by the Board of Directors on 22 June 2022.

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 2022 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 Group 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.

Notes to the Consolidated Financial Statements

34
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

Going concern

During the year ended 31 March 2022 the Group was adversely affected by shut down periods and operating disruptions caused by the

COVID-19 pandemic and supply chain constraints. As a result, the loss for the year was $0.5 million (2021: $8.1 million profit) and the net

debt increased from $48.0 million at 31 March 2021 to $52.3 million at 31 March 2022.

The Directors have considered the forecast cash flows and covenant compliance for the foreseeable future (see note 5.1 regarding

covenant changes agreed during the year) and have concluded that the Group will be able to comply with those covenants for the 12

months following the approval of the consolidated financial statements. The Directors have considered the funding requirements and

note that the Group’s loan facilities do not expire until October 2023 and there is no indication that these will not be able to be renewed

or refinanced at that time. This period of time provides the Group with various options to refinance its borrowings.

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 in note 4.3.

Notwithstanding this challenging period, taking regard of the above and while acknowledging the uncertainties around forecasting in

the COVID-19 environment, the Directors consider these uncertainties do not represent material uncertainties affecting the going

concern position of the Group. Accordingly, the financial statements are prepared on a going concern basis.

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.

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

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2021,

and as described in those annual financial statements, apart from the change below.

Change in Intangible Assets Accounting Policy

In March 2021, the IFRS Interpretations Committee (Committee), which is responsible for interpreting the application of IFRS, issued an

agenda decision that the cost incurred in configuring and customising software provided under SaaS arrangements must be expensed

immediately unless they:

• create an intangible asset, separate from the software, that the customer controls; or

• are paid to the supplier (or their agent) of the cloud-based software for significant customisation work (in a way that such work is

not seperable from the base software), in which case the costs are recorded as a prepayment for services and amortised over the

expected term of the SaaS arrangement.

The Committee’s agenda decision was ratified by the International Accounting Standards Board in April 2021. Refer to note 6.7.

1.2 COVID-19

The global pandemic in relation to COVID-19 was declared by the World Health Organization on 11 March 2020. An outbreak of the Delta

variant in New Zealand during August 2021, and the subsequent Alert Level 4 and 3 lockdowns imposed by the New Zealand Government

had a significant impact on the Group’s second-quarter performance, particularly as the New Zealand operations were deemed non-

essential and as result were closed under Alert Level 4 conditions. The New Zealand operations have been able to operate at the other

alert levels. The Group’s Australian business has continued to operate during the period, albeit with a number of restrictions impacting

the efficiency of the operation.

Notes to the Consolidated Financial Statements
35

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

2 Financial Performance

2.1 Segment Information

Operating segments of the Group at 31 March 2022 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, listed company fees and share incentive

scheme costs.

• Refer to Note 2.4 for details of significant items.

CONSOLIDATED 2022

New Zealand

$’000

Australia

$’000

Eliminations and

Other

$’000

Group

$’000

Commercial Glazing33,457 ––33,457

Residential115,592 58,077 (4)173,665

Retrofit28,941 ––28,941

Total revenue177,990 58,077 (4)236,063

Gross profit77,107 16,488 (4)93,591

Segmental EBITDA before significant items21,189 4,558 –25,747

Group costs––(1,149)(1,149)

Group EBITDA before significant items24,598

Depreciation and amortisation(13,282)(4,865)–(18,687)

EBIT before significant items7,367 (307)(1,149)5,911

Significant items––––

EBIT7,367 (307)(1,149)5,911

Segment assets326,147 69,997(124,006)272,138

Segment non-current assets (excluding deferred tax assets)135,31647,796–183,112

Segment liabilities97,837 26,96861,804 186,609

36
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

CONSOLIDATED 2021

New Zealand

$’000

Australia

$’000

Eliminations and

Other

$’000

Group

$’000

Commercial glazing36,761 ––36,761

Residential118,171 52,490 –170,661

Retrofit24,852 ––24,852

Total revenue179,784 52,490 –232,274

Gross profit86,384 12,463 –98,847

Segmental EBITDA before significant items33,7594,505 –38,264

Group costs––(749)(749)

Group EBITDA before significant items37,514

Depreciation and amortisation(15,089)(5,215)–(20,304)

EBIT before significant items18,670(710)(749)17,211

Significant items951––951

EBIT19,621 (710)(749)18,162

Segment assets300,42965,950 (127,137)239,242

Segment non-current assets (excluding deferred tax assets)115,320 46,981 –162,301

Segment liabilities75,832 21,989 56,020 153,841

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

2022

$’000

2021

$’000

Raw materials and consumables used72,421 63,701

Employee benefit expenses100,23999,136

Subcontractor costs6,220 5,423

Depreciation and amortisation18,687 20,304

Transportation and logistics9,221 8,146

Occupancy costs1,405 1,052

Advertising938 879

Other expenses24,388 23,843

Total cost of sales, distribution and glazing related expenses, selling and marketing

expenses, and administration expenses233,519 222,484

Notes to the Consolidated Financial Statements
37

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Audit and review of financial statements

Audit and review of financial statements - PwC581 367

Other services performed by PwC

Tax review5

Assurance report relating to the Group’s covenant compliance certificate6 5

592372

2.4 Significant items

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Gain on disposal of vehicles under sale & leaseback agreement–(951)

Total significant items before taxation–(951)

Tax expense/(benefit) on above items–266

Total significant items after taxation–(685)

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.

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. The diluted earnings per share are the same as the basic earnings per share.

CONSOLIDATEDCONSOLIDATED

20222021

Profit/(loss) after tax ($'000)(459)8,105

Weighted average number of ordinary shares outstanding ('000s)185,378185,378

Basic earnings per share (cents per share)(0.2)4.4

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

2022

2021

(Restated)

Total assets ($'000)272,138 239,242

Less: intangible assets(54,710)(56,632)

Less: total liabilities(186,609)(153,841)

Net tangible assets ($'000)30,81928,769

Shares on issue at the end of the period ('000s)185,378 185,378

Net tangible assets per share (cents per share)16.6215.52

38
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

2.6 Other income and gains and losses

CONSOLIDATED

CONSOLIDATED

(RESTATED)

Note

2022

$’000

2021

$’000

NZ Government Wage Subsidy and Grants2,470 6,461

Financial assets at fair value through profit or loss - fair value movement and

income receipts from the investment6.7889 683

Other8 277

3,3677,421

NZ Government Wage Subsidy

The Group applied for the New Zealand Government wage subsidy in August 2021, receiving two payments in late August and early

September of $2.2 million in total (for the year ended 31 March 2021: $6.1 million).

Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and

when the Group will comply with the attached conditions. Government grants relating to income are deferred and recognised in profit

or loss over the period necessary to match them with the conditions that they are intended to compensate.

3 Working Capital

3.1 Trade receivables

The following table summarises the impact of the credit loss provision on the trade receivables balance:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Trade receivables35,63635,295

Credit loss provision(679)(1,317)

34,95733,978

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Movements in the credit loss provision are as follows:

Opening balance1,3172,838

Provision (reversed) during the year(141)(1,435)

Receivables written off during the year as uncollectable(497)(86)

Balance at the end of the year6791,317

Notes to the Consolidated Financial Statements
39

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

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:

CURRENT0-59 DAYS

1

60-89 DAYS

90 DAYS AND

LATERTOTAL

31 March 2022$’000$’000$’000$’000$’000

Gross carrying amount 27,128 4,787 1,172 2,549 35,636

Baseline 50 27 28 66 171

Specific – – – 508 508

Total expected credit loss rate0.18%0.56%2.39%22.52%1.91%

Credit loss provision 50 27 28 574 679

CURRENT30–59 DAYS60–89 DAYS

90 DAYS AND

LATERTOTAL

31 March 2021$’000$’000$’000$’000$’000

Gross carrying amount 27,429 3,785 963 3,118 35,295

Baseline 57 12 10 108 187

Market 92 14 1 111 218

Specific – – – 912 912

Total expected credit loss rate0.54%0.69%1.14%36.27%3.73%

Credit loss provision 149 26 11 1,131 1,317

1 During the year ended 31 March 2022, the Australian business completed a system change which resulted in the trade receivable ageing being calculated based on due date rather

than invoice date, with the exception of contractual retentions which continue to be aged based on invoice date. Management believe there is no material impact as a result of this

change in presentation.

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. Ageing is based on agreed credit terms and at balance date, a portion of the Group’s receivables are also

subject to contractual retentions which can last up to and exceed 12 months.

As of 31 March 2022, allowing for retention balances of $1.5 million (2021: $1.6 million) trade receivables of $6.4 million (2021: $5.1 million)

were past due but not impaired.

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.

• Specific credit loss provisions are made based on any specific customer collection issues that are identified. Collections and

payments from the Group’s customers are continuously monitored and a credit loss provision is maintained to cover any specific

customer credit losses anticipated.

COVID-19 impact

The economic conditions have been stable in the construction sector during the year. The Group has considered its credit risk

assessment and concluded its baseline and specific provisions at $0.7 million (2021: $1.3 million) were sufficient and not requiring any

additional COVID-19 overlay.

40
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

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

2022

$’000

2021

$’000

(Restated)

Raw materials, primarily flat glass stock-sheets19,12216,222

Spare parts4,616 3,913

Work in progress3,664 2,244

27,40222,379

The cost of inventories recognised as an expense and included in ‘Cost of sales’ amounted to $72.4 million (2021: $63.7 million).

Accounting policy

Raw materials and stock, and work in progress 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. Inventories also comprise spare parts, which are used to maintain service to, and repair the Group’s plant

assets. Spare parts are stated at the lower of weighted average cost and net realisable value. Prior year spare parts amount has been

reclassifed from other current assets to inventory, refer note 6.7.

3.3 Trade and other payables

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Trade accounts payable21,952 17,278

Employee entitlements8,209 7,304

GST payable173 913

Other interest accruals292 362

Management incentive accrual–2,005

30,62627,862

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.

Notes to the Consolidated Financial Statements
41

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

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

2022

$’000

2021

$’000

Customer contract liabilities2,6082,076

2,6082,076

3.5 Financial instruments

Financial Instruments

Management determines the classification of the Group’s financial assets and 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’s financial assets for the periods covered by these consolidated

financial statements include cash, accounts receivable, and those that are classifed at fair value through profit or loss (“FVTPL”,

rather than cost). Consistent with level 3 of the fair value hierarchy, if quoted market prices are not available, the methodology used

to calculate the fair values of financial assets and liabilities is to identify the expected cash flows and then discount these values back

to the present value.

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.

Financial assets at fair value through profit or loss

The Group’s investment in the loan to 5R Solutions is a level 3 investment in the fair value heirarchy because one or more of the

significant inputs is not based on observable market data. This loan agreement grants the Group an option to convert the loan into

50% of the equity in 5R Solutions. The investment is valued internally at each balance date based on the value of 50% of the equity in

5R solutions. The valuation technique is a multiple of earnings, less debt, adjusted for the proportion of ownership and a discount for

lack of control. An EBITDA multiple of five times (based on comparable transactions) has been used and applied against the Group’s

estimate of maintainable EBITDA earnings (based on the current and forecast earnings of 5R Solutions). Changes in the multiple or

maintainable EBITDA would change the valuation.

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, including the Treasury policy. 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.

42
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

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 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.

At 31 March 2022 and 31 March 2021, all derivatives 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 derivatives 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 ASB Bank Limited as at 31 March 2022

and 31 March 2021.

The Group’s cash flow hedging reserves relate to the following hedging instruments:

CONSOLIDATED 2022

Spot component

of currency

forwards

$’000

Interest rate

swaps

$’000

Hedge on

AUD Loan

$’000

Total hedge

reserve

$’000

Opening balance 1 April 2021167 1,121 –1,288

Change in fair value of hedging instrument recognised

in ‘Other comprehensive income’ (OCI)(32)(1,301)465(868)

Deferred tax12 374 (130)256

Balance at 31 March 2022147 194 335676

The effects of the foreign-currency-related hedging instruments on the Group’s financial position and performance are as follows:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Foreign currency forwards

Carrying amount asset/(liability)(206)(238)

Notional amount23,277 23,375

Maturity dateApr22-Mar23Apr21-Mar22

Hedge ratio

1

1:11:1

Change in discounted spot value of outstanding hedging instruments since 1 April(32)2,163

Change in value of hedged item used to determine hedge effectiveness32(2,163)

Weighted average hedged EUR/NZD rate for the year (including forward points)0.6088 0.5843

Weighted average hedged USD/NZD rate for the year (including forward points)0.6897 0.6971

Weighted average hedged EUR/AUD rate for the year (including forward points)0.6317 0.6326

Weighted average hedged USD/AUD rate for the year (including forward points)0.7292 0.7265

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.

Notes to the Consolidated Financial Statements
43

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

The effects of the interest rate swaps on the Group’s financial position and performance are as follows:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Interest rate swaps

Carrying amount (liability)(274)(1,575)

Notional amount23,284 23,402

Maturity dateÁug23Áug23

Hedge ratio1:11:1

Change in fair value of outstanding hedging instruments since 1 April(1,301)(554)

Change in value of hedged item used to determine hedge effectiveness1,301554

Average proportion of debt hedged during the year38.70%37.60%

Financial instruments by category

CONSOLIDATED 2022

Assets at

amortised

cost

$’000

Asset at fair

value through

profit or loss

$’000

Derivatives

used for

hedging

$’000

Total

$’000

Assets as per statement of financial position

Cash and cash equivalents13,064 –13,064

Derivatives - foreign exchange contracts–68 68

Financial Assets at fair value through profit or loss2,0982,098

Trade and other receivables34,957 –34,957

Balance at 31 March 202248,021 2,09868 50,187

CONSOLIDATED 2021

Note

Assets at

amortised

cost

$’000

Asset at fair

value through

profit or loss

$’000

Derivatives

used for

hedging

$’000

Total

$’000

Assets as per statement of financial position

Cash and cash equivalents7,530 – 7,530

Derivatives - foreign exchange contracts– 136 136

Financial Assets at fair value through profit or loss6.72,576– 2,576

Trade and other receivables33,978 – 33,978

Balance at 31 March 202141,508 2,576136 44,220

44
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

CONSOLIDATED 2022

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 liabilities29,326 –29,326

Provisions5,710 –5,710

Derivatives - foreign exchange contracts (current liabilities)–274 274

Derivatives - interest rate swaps (non-current liabilities)–274 274

Interest-bearing liabilities65,319 –65,319

Lease liabilities81,280–81,280

Balance at 31 March 2022181,635548 182,183

CONSOLIDATED 2021

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 liabilities26,033 – 26,033

Provisions5,389 – 5,389

Derivatives - foreign exchange contracts (current liabilities)– 374 374

Derivatives - interest rate swaps (non-current liabilities)– 1,575 1,575

Interest-bearing liabilities55,519 – 55,519

Lease liabilities60,601 60,601

Balance at 31 March 2021147,542 1,949 149,491

Accounting policy

On initial designation of a derivative as a cash flow hedging instrument, the Group formally documents the relationship between the

hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction.

Documentation includes the nature of the risk being hedged, together with the methods that will be used to assess the hedging

instrument’s effectiveness. The Group also documents its assessment, both at the inception of the hedge relationship as well as

on an ongoing basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in cash flows

of the respective hedged items.

The effective portion of the changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised

in ‘Other comprehensive income’ and presented in the hedging reserve in equity. The gain or loss relating to the ineffective portion is

recognised immediately in the profit or loss section of the statement of comprehensive income.

Foreign exchange risk

Foreign exchange risk arises when future commercial transactions and purchases of recognised assets are denominated in a currency

that is not NZD which is the company’s functional currency. Approximately 95% of annual flat-sheet glass raw materials are purchased

in foreign currencies, being United States Dollar (USD), Euro (EUR) and Australian Dollar (AUD). In accordance with the Company

Treasury policy, foreign exchange risk is managed prospectively over a period to a maximum period of 12 months with allowable

limits of coverage up to 100% over the 6-month term, reducing to 50% up to the 12-month term. Where deemed acceptable by

the directors, coverage can be extended over a longer period.

Notes to the Consolidated Financial Statements
45

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

Exposure to foreign exchange risk

CONSOLIDATED 2022

AUD

$’000

USD

$’000

EUR

$’000

31 March 2022

Cash and cash equivalents3,2534251,023

Trade receivables9,157– –

Trade accounts payable(6,235)(2,478)(1,005)

Balance at 31 March 20226,175(2,053)18

CONSOLIDATED 2021

AUD

$’000

USD

$’000

EUR

$’000

31 March 2021

Cash and cash equivalents621 1 1

Trade receivables7,663 – –

Trade accounts payable(5,270)(2,402)(424)

Balance at 31 March 20213,014 (2,401)(423)

Cash flow hedge reserve movement shown in the statement of comprehensive income reflects the tax-affected change in fair value

of forward foreign exchange currency contracts during the reporting period.

Sensitivity analysis

The following table details the Group’s sensitivity to a 10% strengthening/weakening of the New Zealand Dollar (NZD) against the

following currencies at the reporting date. The table shows the (decrease)/increase in profit or loss and equity as a result of the

10% movements. The analysis assumes that all other variables, in particular interest rates, remain constant. The same basis has

been applied for all periods presented.

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Profit or loss

10% strengthening of the NZD against:

AUD(561)(274)

USD187218

EUR(2)38

10% weakening of the NZD against:

AUD686335

USD(228)(267)

EUR2(47)

CONSOLIDATEDCONSOLIDATED

46
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

2022

$’000

2021

$’000

Equity

10% strengthening of the NZD against:

USD(1,702)(1,885)

EUR222(218)

10% weakening of the NZD against:

USD2,0802,304

EUR222267

Profit or loss movements are mainly attributable to the exposure outstanding on AUD trade receivables at the end of the reporting

period. Equity movements are the result of changes in fair value of derivative instruments designated as hedging instruments in

cash flow hedges.

Commodity cost risk

The primary raw material used by the Group is flat glass which is imported from suppliers around the world. While there are numerous

manufacturers of flat sheet glass, the Group is exposed to commodity price risk and therefore manages access to supply through

close relationships with suppliers. Cost is an important variable in the determination of supply, and the Group is clearly exposed to

changes in the cost of glass.

3.6 Provisions

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Warranty provision115 226

Employee expenses provision1,795 1,448

Lease Make Good provision1050

Total current provisions1,920 1,724

Lease Make Good provision3,790 3,665

Total non-current provisions3,790 3,665

Total provisions5,710 5,389

Accounting Policy

Provisions are recognised when the Group has a present obligation as a result of a past event, where it is probable that a cost will be

incurred to settle the obligation and a reliable estimate of that obligation is able to be made.

Notes to the Consolidated Financial Statements
47

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

4 Long-Term Assets

4.1 Property, Plant and equipment

CONSOLIDATED 2022

Plant and

equipment

$’000

Furniture,

fittings and

equipment

$’000

Motor vehicles

$’000

Total

$’000

Opening balance

Cost87,099 4,378 10,882 102,359

Accumulated depreciation(41,359)(3,451)(5,082)(49,892)

Net book value at 1 April 202145,740 927 5,800 52,467

Additions9,236 533 2,135 11,904

Disposals(64)–(267)(331)

Depreciation expense(7,208)(546)(1,308)(9,062)

Foreign exchange impact(197)–(33)(230)

Closing net book value at 31 March 202247,5079146,327 54,748

Represented by:

Cost96,074 4,911 12,718 113,703

Accumulated depreciation(48,567)(3,997)(6,391)(58,955)

Net book value at 31 March 202247,507 9146,327 54,748

CONSOLIDATED 2021

Plant and

equipment

$’000

Furniture,

fittings and

equipment

$’000

Motor vehicles

$’000

Total

$’000

Opening balance

Cost83,509 3,910 16,682 104,101

Accumulated depreciation(33,376)(2,973)(8,107)(44,456)

Net book value at 1 April 202050,133 937 8,575 59,645

Additions3,928 469 925 5,322

Disposals(580)(1)(2,056)(2,637)

Depreciation expense(8,471)(478)(1,692)(10,641)

Foreign exchange impact730 –48 778

Closing net book value at 31 March 202145,740 927 5,800 52,467

Represented by:

Cost87,099 4,378 10,882 102,359

Accumulated depreciation(41,359)(3,451)(5,082)(49,892)

Net book value at 31 March 202145,740 927 5,800 52,467

Critical estimates and judgements

Economic lives of intangible assets and property, plant and equipment

Property, plant and equipment are long-lived assets that are amortised/depreciated over their estimated useful lives. The estimated

useful lives are reviewed annually and may change if necessary. The actual useful life of an asset may be shorter or longer than what

had been estimated, which will affect amortisation, depreciation and the carrying values of these assets.

48
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

Accounting policy

All property, plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure

that is directly attributable to the acquisition of the items.

Depreciation of property, plant and equipment is calculated using the straight-line value method to allocate the cost of assets over

their expected useful lives. The rates are as follows:

Depreciation

rate

Depreciation

basis

Plant and equipment7-15%Straight line

Motor vehicles12-20%Straight line

Furniture, fixtures and fittings20-25%Straight line

4.2 Right-of-use assets

CONSOLIDATED 2022

Property

$’000

Motor vehicles

$’000

Equipment

$’000

Total

$’000

Opening balance

Cost83,280 2,765 210 86,255

Accumulated depreciation(34,973)(554)(102)(35,629)

Net book value at 1 April 202148,307 2,211 108 50,626

Additions23,2115,138 284 28,633

Disposals(766)(4)(28)(798)

Depreciation expense(6,730)(1,049)(92)(7,871)

Foreign exchange impact(85)––(85)

Closing net book value at 31 March 202263,9376,296272 70,505

Represented by:

Cost101,013 7,894 358 109,265

Accumulated depreciation(37,076)(1,598)(86)(38,760)

Net book value at 31 March 202263,937 6,296 272 70,505

CONSOLIDATED 2021

Property

$’000

Motor vehicles

$’000

Equipment

$’000

Total

$’000

Opening balance

Cost84,778 368 204 85,350

Accumulated depreciation(34,773)(169)(45)(34,987)

Net book value at 1 April 202050,005 199 159 50,363

Additions4,639 2,400 –7,039

Disposals–(18)–(18)

Depreciation expense(6,760)(377)(56)(7,193)

Foreign exchange impact423 7 5 435

Closing net book value at 31 March 202148,307 2,211 108 50,626

Represented by:

Cost83,280 2,765 210 86,255

Accumulated depreciation(34,973)(554)(102)(35,629)

Net book value at 31 March 202148,307 2,211 108 50,626

Notes to the Consolidated Financial Statements
49

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

In determining the lease term the Group includes any periods covered by options to extent where the Group is reasonably certain to

exercise that option.

Accounting policy

The Group leases mainly relate to buildings which are typically made for fixed periods of 1 to 16 years but may have extension options.

Lease terms are negotiated on an individual basis and contain a wide range of terms and conditions. The lease agreements do not

impose any covenants, but leased assets may not be used as security for borrowing purposes.

Assets and liabilities arising from a lease are initially measured on a present-value basis. Lease liabilities include the net present value

of the following lease payments:

• fixed payments, less any lease incentives receivable; and

• variable lease payments that are based on an index or a rate.

Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and any restoration

costs. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense

in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and

small items of office furniture.

4.3 Intangible Assets

CONSOLIDATED 2022

Customer

relationships

$’000

Goodwill on

acquisitions

$’000

Computer

software

$’000

Total

$’000

Opening balance (restated)

Cost13,055 149,712 9,493172,260

Accumulated amortisation and impairment(11,847)(95,221)(8,560)(115,628)

Net book value at 1 April 20211,208 54,491 93356,632

Additions––61 61

Disposals––––

Amortisation expense(1,208)–(547)(1,755)

Foreign exchange impact–(255)27 (228)

Closing net book value at 31 March 2022–54,236 474 54,710

Represented by:

Cost13,055 149,364 6,588169,007

Accumulated amortisation and impairment(13,055)(95,128)(6,114)(114,297)

Net book value at 31 March 2022–54,236 474 54,710

50
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

CONSOLIDATED 2021 (RESTATED)

Customer

relationships

$’000

Goodwill on

acquisitions

$’000

Computer

software

$’000

Total

$’000

Opening balance

Cost12,929 147,846 9,119 169,894

Accumulated amortisation and impairment(10,271)(94,718)(7,406)(112,395)

Net book value at 1 April 20202,658 53,128 1,713 57,499

Additions––201201

Amortisation expense(1,450)–(1,020)(2,470)

Foreign exchange impact–1,363 39 1,402

Closing net book value at 31 March 20211,208 54,491 933 56,632

Represented by:

Cost13,055 149,712 9,493 172,260

Accumulated amortisation and impairment(11,847)(95,221)(8,560)(115,628)

Net book value at 31 March 2021 (restated)1,208 54,491 933 56,632

Critical estimates and judgements: Goodwill

The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable amounts:

• at least annually for goodwill with indefinite lives; and

• where there is an indication that the assets may be impaired (which is assessed at least at each reporting date).

Impairment tests are performed by assessing the recoverable amount of each individual asset or CGU. The recoverable amount

is determined as the higher amount calculated under a value-in-use (VIU) or a fair value less costs of disposal (FVLCD) calculation.

Both methods utilise pre-tax cash flow projections based on financial projections approved by the Directors.

Impairment tests for goodwill

The Group’s segments have been classified as New Zealand and Australia aligning with the way the business is reviewed. The New Zealand

goodwill balance arose prior to the Group’s Initial Public Offering (IPO) in July 2014.The Australian goodwill arose in August 2016 with the

acquisition of AGG. Goodwill balances are as follows:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

New Zealand30,87930,879

Australia23,35723,612

54,23654,491

Impairment testing for both CGUs was completed using the VIU method.

Key assumptions in the 31 March 2022 impairment assessment (VIU) calculations (and the equivalent assumptions in the 31 March 2021

calculations) are as follows:

CONSOLIDATEDCONSOLIDATED

20222021

New ZealandAustraliaNew ZealandAustralia

Compound annual revenue growth – 3 years7.1%14.3%(0.2%)7.7%

Long-term growth rate1.3%1.3%1.3%1.3%

Discount rate (pre tax, post IFRS 16)13.2%11.9%11.3%10.6%

Discount rate (post tax, post IFRS 16)9.5%8.3%8.1%7.4%

Notes to the Consolidated Financial Statements
51

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

Cashflow projections

The impairment testing used pre-tax cash flow projections for both CGUs based on financial projections approved by the directors

covering a three-year period. In forming these projections, the directors considered the views of several economic forecasters,

observable 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.

The directors have used a single set of cash flow projections in the 31 March 2022 testing, which is consistent with the methodology

used at 31 March 2021. The directors have also referenced longer term independent forecast estimates in a consistent way compared

to last year.

Despite the ongoing uncertainty caused by COVID-19 in the year ended 31 March 2022, new homes consented have continued at

historically elevated levels in New Zealand. The value of non-residential building consents have also increased year on year. The

New Zealand CGU was significantly impacted by COVID-19 during the financial year ended 31 March 2022 and this negative impact

is not considered to be an ongoing factor in the medium term earnings outlook. In late 2021, the Ministry of Building and Innovation

announced changes to the building code (H1 Standards) that will require an increase in the thermal properties of window units as part

of a suite of changes designed to improve the thermal performance of New Zealand homes. The medium term outlook for the NZ CGU

is balanced between an expectation that the current consenting levels will decline from the current peak and the positive impact from

the change in the H1 standards which progressively take effect from November 2022.

The Australian CGU has also experienced short term issues from COVID-19 and severe weather events in the year ended 31 March 2022.

The business remains well placed for growth in the coming years as the penetration of double-glazing increases alongside changing

construction codes and consumer preferences.

Long-term growth rate

Cash flows beyond the three-year period are extrapolated using estimated long-term growth rate. The long-term growth rate

assumptions are supported by long-term population growth rates in New Zealand and Australia and the increased use and prevalence

of glass products in the Group’s markets. The long-term growth rates have been left unchanged in the 2022 testing.

Discount rate

The discount rate (post tax) represents the current market assessment of the risks specific to the CGU, taking into account the time

value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount

rate calculation is based on the specific circumstances of the CGU and its operating segments and is derived from its weighted

average costs of capital (WACC).

The discount rates used are supported by independent third party expert advice. The discount rates at 31 March 2022 were higher

than the prior year on account of market increases in interest rates (risk-free rates) and the consideration of market-specific risks.

Market capitalisation comparison

The Group compares the carrying amount of net assets with the market capitalisation value at each balance date. The share price at

31 March 2022 was $0.30 equating to a market capitalisation of $55.6 million. This market value excludes any control premium and may

not reflect the value of all of the Group’s net assets. The carrying amount of the Group’s net assets at 31 March 2022 was $85.5 million

($0.46 per share). Management and the Directors have considered the reasons for this difference and concluded all relevant factors

had been allowed for in their VIU model.

Sensitivity to changes in key assumptions

The impairment assessments confirmed that, for the New Zealand and Australian business units, the recoverable amounts exceed

carrying values as at 31 March 2022. Based on the current uncertainty of future economic conditions the key sensitivity is the

New Zealand building activity outlook. No other reasonably possible change in other key assumptions used in the determination

of the recoverable value of CGU’s would result in a material impairment to the Group.

Accounting policy

Goodwill

Goodwill represents the excess of the consideration paid for an acquisition over the fair value of the Group’s share of the net

identifiable assets of the acquired subsidiary at the date of acquisition. Any goodwill arising on acquisitions of subsidiaries is included

in intangible assets. Goodwill acquired in business combinations is not amortised. Instead, goodwill is tested for impairment annually,

or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated

impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs

of disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed.

For the purposes of impairment testing, goodwill acquired in a business combination is allocated to each group of the CGUs that is

expected to benefit from the synergies of the combination. Each unit to which the goodwill is allocated represents the lowest level

within the entity at which the goodwill is monitored for internal management purposes.

52
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

Computer software

Acquired computer software licences that are not defined as a SaaS arrangement are capitalised on the basis of the costs incurred

to acquire and bring to use the specific software. Costs that are directly associated with the production of identifiable and unique

software products controlled by the Group are recognised as intangible assets when management intends to use the software and

anticipate it will generate probable future economic benefits.

Directly attributable costs that are capitalised as part of the software product include the software development employee costs

and an appropriate portion of relevant overheads.

Amortisation of computer software is calculated on a straight-line basis over a useful life of four years.

Contractual customer relationships

Contractual customer relationships acquired in a business combination are recognised at fair value at the acquisition date.

The contractual customer relationships acquired are estimated to have a finite useful life and are carried at cost less accumulated

amortisation. Amortisation is calculated on a straight-line method over the expected life, being 10 years of the customer relationship

in New Zealand.

5 DEBT & EQUITY

5.1 Interest-bearing liabilities

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Bank borrowings62,29652,175

Other asset financing3,0233,344

65,31955,519

Bank borrowings are secured by a first-ranking composite general security deed. The Group’s bank borrowing facilities negotiated on

14 October 2020 comprise a syndicated revolving loan facility of $75 million for a three-year term expiring in October 2023, as well as

overdraft and bank guarantees totalling $8.15 million. Following the impact of the COVID lockdowns in August and September 2021,

the Group received temporary covenant amendments. The Group complied with all covenants throughout the year.

(A) Assets pledged as security

The bank loans are secured under both a General Security Deed and Specific Security Deed which results in registered charges over

assets of the Group. In addition, there are positive and negative pledge undertakings through shares held of various subsidiaries.

(B) Fair value

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.

Accounting policy

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised

cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is expensed in the statement of

comprehensive income over the period of the borrowings using the effective interest method.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at

least 12 months after the statement of financial position date.

Notes to the Consolidated Financial Statements
53

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through

an adequate amount of committed credit facilities and the ability to close-out market positions.

As at 31 March 2022 the Group had cash of $13.1 million (2021: $7.5 million). Information in respect of negotiated credit facilities

is shown below.

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Committed credit facilities pursuant to syndicated facility83,14593,253

Drawdown at balance date(66,664)(56,876)

Available credit facilities16,48136,377

The table below analyses both of the Group’s non-derivative financial liabilities and derivative financial liabilities into relevant maturity

groupings based on the remaining period at the balance sheet date to the contractual maturity date. Derivative financial liabilities are

included in the analysis if their contractual maturities are essential for an understanding of cash flows.

CONSOLIDATED 2022

Less than

1 year

$’000

Between

1 and 2 years

$’000

Between

2 and 5 years

$’000

> 5 years

$’000

Total

$’000

Interest-bearing liabilities and

interest owing3,452 64,139 886 1,228 69,685

Interest rate swap–274 ––274

Foreign exchange contracts274 –––274

Lease liabilities11,07210,82828,21367,941118,054

Trade accounts payable21,952–––21,952

Total at 31 March 202236,75075,241 29,079 69,169210,239

CONSOLIDATED 2021

Less than

1 year

$’000

Between

1 and 2 years

$’000

Between

2 and 5 years

$’000

> 5 years

$’000

Total

$’000

Interest-bearing liabilities and

interest owing2,134 1,812 55,036 1,272 60,254

Interest rate swap––1,575 –1,575

Foreign exchange contracts374 –––374

Lease liabilities9,433 8,836 20,770 41,177 80,216

Trade accounts payable17,278 –––17,278

Total at 31 March 202129,219 10,648 77,381 42,449 159,697

Interest rate risk

The Group’s interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Group to cash flow interest

rate risk. During the period, the Group’s borrowings at variable rates were denominated in both New Zealand and Australian dollars.

If interest rates in New Zealand and Australia increased by 10% the impact would be an additional cost of $0.26 million and a

subsequent decrease of $0.26 million if rates decreased by 10%. (In 2021 an interest rate increase of 10% would have resulted

in additional costs of $0.12 million and a subsequent decrease of $0.12 million if rates decreased by 10%.)

The Group adopts a policy of ensuring that its exposure to changes in interest rates on borrowings is on a fixed-rate basis by entering

into interest rate swaps.

54
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

5.2 Lease liabilities

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Opening lease liabilities recognised at 1 April 60,601 59,485

Additions28,6137,004

Termination(799)(19)

Interest for the period3,2013,088

COVID-19 rent relief(138)(367)

Lease payments made(10,091)(9,060)

Foreign exchange impact(107)470

Lease liabilities at 31 March 202281,28060,601

Current lease liabilities6,5356,559

Non-current lease liabilities74,74554,042

Total lease liabilities81,28060,601

Lease liabilities maturity analysis

Minimum lease

payments

$’000

Interest

$’000

Present value

$’000

Within one year11,071(4,536)6,535

One to five years39,041 (14,788)24,253

Beyond five years67,941 (17,449)50,492

Lease liabilities at 31 March 2022118,053 (36,773)81,280

Minimum lease

payments

$’000

Interest

$’000

Present value

$’000

Within one year9,433 (2,874)6,559

One to five years29,605 (8,800)20,805

Beyond five years41,177 (7,940)33,237

Lease liabilities at 31 March 202180,215 (19,614)60,601

Estimates and judgements: Incremental borrowing rates and lease terms

Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental

borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar

value in a similar economic environment with similar terms and conditions.

During the Alert Level 4 lockdown’s in April 2020 and August/September 2021, the Group negotiated with its landlords to obtain rent

relief on various properties. The Group adopted the NZ IFRS 16 Leases practical expedient in relation to rent concessions, and as such,

the relief obtained from these is reflected through a reduction in lease liabilities with a corresponding expense reduction recognised in

the consolidated statement of comprehensive income for the year ended March 2022 $0.1 million (2021 $0.4 million).

5.3 Contributed equity

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Opening balance307,198307,198

Closing balance307,198307,198

Notes to the Consolidated Financial Statements
55

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

At 31 March 2022 the Company had issued 185,378,086 fully paid ordinary shares (2021: 185,378,086 fully paid ordinary shares).

No shares were issued or cancelled during the year (2021: nil). Ordinary shares entitle the holder to participate in dividends,

and to share in the proceeds of winding up the Company in proportion to the number of shares held. Every holder of ordinary

shares present at a meeting in person or by proxy, is entitled to one vote, and on a poll each share in entitled to one vote.

The Company≈does not have a limited amount of authorised capital.

Accounting policy

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or acquiring its own shares are shown in equity as a deduction,

net of tax, from the proceeds.

Dividends

Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.

Dividend distribution to Group shareholders is recognised as a liability in the Group’s financial statements in the period in which the

dividends are declared by the board.

Metro Performance Glass paid no dividends in 2021 and 2022.

Capital management

The Group’s syndicated revolving loan facility agreement restricts the Group from making a distribution to shareholders unless the

leverage ratio before and after the distribution is below 2.0 (up to 31 December 2021: below 1.5).

The Group and the parent entity’s objectives when managing capital are to safeguard their ability to continue as a going concern,

so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital

structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital

to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of the gearing ratio and leverage ratio. The Group’s respective ratios at 31 March 2022 were

as follows:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Interest-bearing liabilities65,319 55,519

Prepaid financing costs380628

Less: cash and cash equivalents(13,064)(7,530)

Net debt52,635 48,617

Equity85,529 85,401

Gearing ratio38.1%36.3%

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Interest-bearing liabilities65,319 55,519

Prepaid financing costs380628

Less: cash and cash equivalents(13,064)(7,530)

Net debt52,635 48,617

Profit before interest, tax, depreciation and amortisation

1

13,921 28,765

Leverage ratio3.78 : 11.69: 1

1 Calculated on pre-IFRS 16 basis, excluding significant items as per bank covenant definitions.

56
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

6 OTHER

6.1 Income taxation

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

(Restated)

Profit before income taxation(416)11,394

Income taxation expense at the Group's effective tax rate(116)3,000

Tax effect of non-deductible and non-assessable items (44)130

Prior year adjustment203 159

Income tax expense43 3,289

Represented by:

Current taxation794 5,231

Deferred taxation(751)(1,942)

43 3,289

Imputation credit account

The amount of imputation credits at balance date available for future distributions is $28.3 million at 31 March 2022, ($26.9 million at

31 March 2021).

6.2 Deferred taxation

Consolidated deferred tax assets and liabilities are attributable to the following:

CONSOLIDATED 2022

Assets

$’000

Liabilities

$’000

Net

$’000

Property, plant and equipment–(1,731)(1,731)

Right-of-use assets–(19,393)(19,393)

Inventory and receivables29–29

Cash flow hedge269 –269

Intangibles146 0146

Lease liabilities22,526–22,526

Provisions and accruals3,693 –3,693

Tax losses5,426–5,426

32,089(21,124)10,965

CONSOLIDATED 2021

Assets

$’000

Liabilities

$’000

Net

$’000

Property, plant and equipment–(1,855)(1,855)

Right-of-use assets–(13,701)(13,701)

Inventory and receivables32 –32

Cash flow hedge524 –524

Intangibles–(360)(360)

Lease liabilities16,409 –16,409

Provisions and accruals3,810 –3,810

Tax losses5,779 –5,779

26,554 (15,916)10,638

Notes to the Consolidated Financial Statements
57

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

Movement in temporary differences during the year:

CONSOLIDATED 2022

Opening balance

1 April 2021

$’000

Recognised in

profit or loss

$’000

Recognised in

OCI

$’000

Balance

31 Mar 2022

$’000

Property, plant and equipment(1,855)552(428)(1,731)

Right-of-use assets(13,701)(5,724)32(19,393)

Inventory and receivables32 (3)(0)29

Cash flow hedge524 –(255)269

Intangibles(360)168338146

Lease liabilities16,409 6,149(32)22,526

Provisions and accruals3,810 (99)(18)3,693

Tax losses5,779 (292)(61)5,426

10,638 751(424)10,965

CONSOLIDATED 2021 (RESTATED)

Opening balance

1 April 2020

$’000

Recognised in

profit or loss

$’000

Recognised in

OCI

$’000

Balance

31 Mar 2021

$’000

Property, plant and equipment(1,365)(434)(56)(1,855)

Right-of-use assets(14,256)697 (142)(13,701)

Inventory and receivables139 (116)9 32

Cash flow hedge66 –458 524

Intangibles(1,075)735 (20)(360)

Lease liabilities16,807 (537)139 16,409

Provisions and accruals2,657 1,056 97 3,810

Tax losses4,935 541 303 5,779

7,908 1,942 788 10,638

Accounting policy

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that

it relates to items recognised in ‘Other comprehensive income’ or directly in equity. In this case, the tax is also recognised in

‘Other comprehensive income’ or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance date.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and

liabilities and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from

initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects

neither accounting nor taxable profit or loss. No deferred tax liability was recognised on initial recognition of goodwill. Deferred income

tax is determined using tax rates (and laws) that have been enacted, or substantively enacted, by the statement of financial position

date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised for unused tax losses and deductible temporary differences to the extent that it is

probable that future taxable profit will be available against which they can be utilised. Deferred tax assets are reviewed at each

reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against

current tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied by the same taxation authority

on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

58
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

6.3 Group Reserves

Group reorganisation reserve

Upon acquisition of Metroglass Holdings Limited in July 2014, the assets and liabilities acquired were measured at their pre-combination

carrying amounts without fair value uplift. The difference between the consideration transferred and the carrying value of the assets

and liabilities acquired of $170.7 million was recorded in the group reorganisation reserve.

Accounting policy

Where an acquisition occurs through group reorganisation, the identifiable assets and liabilities acquired are measured at their

pre-combination carrying amounts without fair value uplift. No new goodwill is recorded. Any difference between the consideration

transferred and the carrying value of the assets and liabilities acquired is recorded in equity.

Share-based payments reserve

The Group currently has a long-term incentive plan for selected employees. The plan’s participants are members of the Senior

Leadership Team and other selected senior managers. The reserve is used to record the accumulated value of the plan which has

been recognised in the statement of comprehensive income.

The plan is designed to secure those employees’ retention in Metro Performance Glass and to reward performance that underpins the

achievement of Metro Performance Glass’ business strategy and long-term shareholder wealth creation. Participants are offered an

annual award of a specified number of both performance rights and share options in Metro Performance Glass (in accordance with

the plan rules).

The performance rights enable participants to acquire shares in Metro Performance Glass with no consideration payable, subject to

Metro Performance Glass achieving set performance hurdles and meeting certain vesting conditions.

The share options enable participants to acquire shares in Metro Performance Glass at a market-based exercise price, subject to

Metro Glass achieving set performance hurdles and meeting certain vesting conditions.

In the event that the respective performance hurdles are not met on the vesting date, retesting will be permitted after a further

six and twelve months from the measurement date.

The following share options and performance share rights (PSR) have been issued and had not lapsed or been exercised at

31 March 2022.

Plan NameDate issued

Number of

options

Number

of PSR

Options

exercise

priceVesting date

2019 LTI plan24-May-181,193,009374,275$0.897-Jun-21

2020 LTI plan23-May-193,434,5561,287,961$0.456-Jun-22

2021 LTI plan19-Jun-202,704,7171,442,516$0.203-Jul-23

2022 LTI plan21-May-211,563,033808,464$0.424-Jun-24

Accounting policy

The long-term incentive plan is an equity-settled share-based payment which provides eligible employees with the opportunity to

acquire shares in the Group. The fair value of shares granted is recognised as an employee benefit expense with a corresponding

increase in equity. The fair value is measured at grant date and recognised over the vesting period. The fair value of the plan has been

assessed by an independent valuer.

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Share-based payments reserve

Opening balance1,212931

Transfer to equity on vesting of employee share purchase scheme(294)–

Movement in share-based payments reserve448281

Closing balance1,3661,212

Notes to the Consolidated Financial Statements
59

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

6.4 Related Party Transactions

Subsidiaries

The Group’s principal subsidiaries at 31 March 2022 and 31 March 2021 are set out below. Unless otherwise stated, they have share

capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interest held equals

the voting rights held by the Group. The country of incorporation or registration is also their principal place of business.

Name of entity

Country of

incorporation2022 Interest2021 Interest

Metropolitan Glass & Glazing LimitedNew Zealand100%100%

Metroglass Finance LimitedNew Zealand100%100%

Australian Glass Group Holding Pty LtdAustralia100%100%

Australian Glass Group Finance Pty LtdAustralia100%100%

Directors

The names of persons who were directors of the Company at any time during the financial period are as follows: Peter Griffiths,

Russell Chenu, Angela Bull, Rhys Jones, Graham Stuart, Mark Eglinton and Julia Mayne.

Russell Chenu retired on 5 August 2021. Julia Mayne was appointed on 1 September 2021.

Key management and Board of Directors’ compensation

Key management are members of the Executive Team, being direct reports of the CEO. The compensation paid to key management

for employee service is shown below:

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Salaries and other short-term employee benefits2,459 2,747

Management incentive

1

819 –

Termination benefits–211

Share-based payments220 167

3,498 3,125

1 Relates to amounts paid pursuant to prior year financial and operating performance.

Board of Directors’ compensation

CONSOLIDATEDCONSOLIDATED

2022

$’000

2021

$’000

Directors’ fees605 628

605 628

60
2022 Annual Report

Notes to the Consolidated Financial Statements (continued)

6.5 Contingencies

At 31 March 2022 the Group had no contingent liabilities or assets.

6.6 Commitments

At 31 March 2022 the Group has contractual commitments for the acquisition of plant and equipment of $1.1 million for the year ending

31 March 2023.

6.7 Prior period adjustments

During the year ended 31 March 2022, the Group identified that the establishment of the loan agreement with 5R Solutions Limited (5R)

in 2015 should have been recognised as a financial asset at fair value through profit or loss (“FVTPL”), rather than at amortised cost.

As noted in the Basis for Preparation note, the impact of the change in accounting policy related to Intangible Assets also had an

impact on the prior period. The Group concluded that the configuration and customisation expenditure on a SaaS arrangement

performed by a contracted third party did not create any intangible assets and therefore should be expensed in the year they were

incurred, which was the year ended 31 March 2021.

The Group reclassifed the spare parts balance from other current assets to inventories (note 3.2) to reflect the nature of the assets.

The impact of the restatement on the consolidated financial statements at 31 March 2021 is set out in the tables below:

Impact on the Statement of Comprehensive Income for the year ended 31 March 2021

Consolidated

2021 Annual

Report

$’000

Intangible

Asset

Change

$’000

5R

Reinstatement

$’000

Consolidated

Restated

$’000

Gross profit98,847 ––98,847

Distribution and glazing-related expenses(43,361)––(43,361)

Selling and marketing expenses(13,267)––(13,267)

Administration expenses(31,010)(1,419)–(32,429)

Other Income6,738 –683 7,421

Profit before significant items, interest and tax17,947 (1,419)683 17,211

Significant items951––951

Finance Expense(6,768)––(6,768)

Finance Income100 –(100)–

Income taxation expense(3,686)397 (3,289)

Profit for the year8,544 (1,022)583 8,105

Earnings per share

CentsCentsCentsCents

Basic and diluted earnings per share4.6(0.5)0.34.4

Impact on the Statement of Financial Position at 31 March 2021

2021

as reported

$’000

Spare Parts

Reclassification

Change

$’000

Intangible

Asset

Change

$’000

5R

1 April 2020

Restated

$’000

5R

Restatement

$’000

2021

Restated

$’000

Other Current Assets6,393 (3,913)–(200)2,280

Inventory18,466 3,913 22,379

Financial Assets at fair value through

profit or loss––1,9935832,576

Deferred Tax Assets10,241 397 ––10,638

Intangible Assets58,051 (1,419)––56,632

Total assets237,888 (1,022)1,793583239,243

Net Assets84,047(1,022)1,793583 85,401

Retained earnings(52,925)(1,022)1,793583 (51,571)

Total equity84,047 (1,022)1,793583 85,401

Notes to the Consolidated Financial Statements
61

20 Anu 0u aAul0Rn0epor AoutpRrRCpreum r AcAR n (continued)

Impact on the Statement of Cash Flows for the year ended 31 March 2021

2021

as reported

$’000

Intangible Asset

Change

$’000

5R

Restatement

$’000

2021

Restated

$’000

Payments to suppliers and employees(196 996)(1 527)(198 523)

Net cash inflow from operating activities30 374 (1 527)28,847

Payments for intangible assets(1 752)1 527 (225)

Net cash outflow from investing activities(3 831)1 527 (2,304)

Impact on the reconciliation of profit/(loss) after income tax to net cash inflow from operating activities for the year

ended 31 March 2021.

2021

as reported

$’000

Intangible Asset

Change

$’000

5R

Restatement

$’000

2021

Restated

$’000

(Loss)/profit for the Year8,544 (1,022)5838,105

Depreciation and amortisation20,412 (109)20,303

Movement in deferred tax(1,545)(397)(1,942)

Movement in financial asset at fair value through profit or

loss and associated non-cash income–(583)(583)

Net cash inflow from operating activities30,374 (1,527)–28,847

Impact on the Statement of Financial Position at 1 April 2020

1 April 2020

$’000

Accounting

Policy

Change Spare

Parts

$’000

Intangible Asset

Change

$’000

5R

Restatement

$’000

1 April 2020

Restated

$’000

Inventories20,2763,675––23,951

Other current assets12,711(3,675)–(200)8,836

Financial Assets at fair value

through profit or loss–1,993 1,993

Total assets258,420 ––1,793260,213

Retained earnings(61,469)1,793 (59,676)

Total equity75,843 ––1,793 77,636

6.8 Subsequent Events

Subsequent to balance date, the Company has initiated a process to convert its loan to 5R Solutions Ltd, classified as financial assets

at fair value through profit or loss, to a 50% equity interest in 5R Solutions Ltd, an option that is available under the terms of the loan

agreement. The consequence of the change for future reporting periods will be the de-recognition of the financial asset at fair value

through profit or loss and the recognition of an equity accounted investment. The equity accounted investment will not be revalued

to fair value at each subsequent reporting date. The equity accounted results for 5R Solutions Ltd, being the Group’s share of 5R

Solutions Ltd profit and other comprehensive income, will be shown as a separate line item on the face of the Consolidated Statement

of Comprehensive Income for future reporting periods.

62
2022 Annual Report


Independent auditor’s report

To the shareholders of Metro Performance Glass Limited

Our opinion

In our opinion, the accompanying consolidated financial statements of Metro Performance Glass

Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects,

the financial position of the Group as at 31 March 2022, its financial performance and its cash flows for

the y

ear then ended in accordance with New Zealand Equivalents to International Financial Reporting

Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).

What we have audited

The Group's consolidated financial statements comprise:

●the consolidated statement of financial position as at 31 March 2022;

●the consolidated statement of comprehensive income for the year then ended;

●the conso

lidated statement of changes in equity for the year then ended;

●the consolidated statement of cash flows for the year then ended; and

●the notes to the consolidated financial statements, which include significant accounting policies

and other explanatory information.


Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs

(NZ)) and Internatio

nal Standards on Auditing (ISAs). Our responsibilities under those standards are

further described in theAuditor’s responsibilitiesfor the audit of the consolidated financial statements

section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

Independence

We are independent of the Group in accordance with Professional an

d Ethical Standard 1International

Code of Ethics for Assurance Practitioners (including International Independence Standards) (New

Zealand)(PES 1) issued by the New Zealand Auditingand Assurance Standards Board and the

International Code of Ethics for Professional Accountants (including International Independence

Standards)issued by the International Ethics StandardsBoard for Accountants (IESBA Code),

and we

have fulfilled our other ethical responsibilities in accordance with these requirements.

Our firm carries out other services for the Group in the areas of an assurance report relating to the

Group’s covenant compliance certificate and tax advice relating to the long-term incentive plan and,

subsequent to 31 March 2022, agreed upon procedures relating to the Group’s covenant compliance

certifica

te and financial information attached to a visa application. The provision of these other

services has not impaired our independence as auditor of the Group.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in

our audit of the consolidated financial statements of the current year. These matters were addressed

in the context of our audi

t of the consolidated financial statements as a whole, and in forming our

opinion thereon, and we do not provide a separate opinion on these matters.

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand

T: +64 9 355 8000,www.pwc.co.nz

Independent Auditor’s Report
63



Description of the key audit matterHow our audit addressed the key audit matter

Goodwill impairment tests

As at 31 March 2022 the carrying amount

of the Group’s goodwill amounted to

$54.2 million as disclosed in note 4.3,

which related to the New Zealand ($30.9

million) and Australia ($23.3 million) cash

generating units (CGUs).

Management has based its impairment

assessment for each CGU on a value in

use b

asis, using a discounted cash flow

model based on forecast future

performance to determine the recoverable

amount.

The key assumptions in the impairment

assessments are the compound annual

revenue growth rates over the next three

years, the discount rates and the

long-term growth rates.

Management performed a comparison of

the Group’s net assets to the market

capitalisation of the Company and

prepared an anal

ysis and explanation of

the difference. Management considered

the reasons for this difference in finalising

their assessment of the recoverable

amounts of the CGUs of the Group.No

impairment was identified.

The impairment testing of goodwill is

considered a key audit matter due to the

materiality of the goodwill balances, the

gap between the Group’s net assets and

its market capitalisation, and the

significa

nt level of management

estimation and judgement applied in

determining key assumptions used in the

impairment assessment.


Our audit focused on assessing and challenging the

key assumptions used by management in the two

impairment assessments. Our procedures included:

●Evaluating the appropriateness of the identification

of CGUs.

●Considering whether the valuation methodologies

applied were appropriate.

●Agr

eeing the cash flows included in management’s

impairment models to the board approved plans.

●Assessing the Group’s forecasting accuracy by

comparing historical forecasts to actual results and

considering the impact on cash flow forecasts.

●Evaluating key cash flow assumptions by

obtaining from management a detailed analysis of

the strategic direction of the business and market

dynamics and comparing thes

e against third party

forecasts for the industry and current trends. We

also evaluated management’s evidence regarding

the ability of the Group to increase prices in

response to cost inflation and the expected

year-on-year improvement in performance without

the same COVID-19 related operating restrictions

that occurred in the year ended 31 March 2022.

●Engaging our valuation expert to assist us with:

-asse

ssing whether the discount rates and

long-term growth rates used by management

are reasonable in the context of the forecasts;

and

-considering management’s paper comparing

the net assets and the market capitalisation of

the Company. This analysis was completed as

part of our assessment of indicators of

impairment.

●Testing the accuracy of the calculations in

management’s impairment models, and checking

that

the carrying amount for each of the CGU’ s net

assets was correctly included in the impairment

assessment.

●Performed sensitivity analyses for the effect of

reasonably possible changes in key assumptions

on the impairment assessment.

●Evaluating the effect of the trading results up to

the date of our report.

●Considering the appropriateness of disclosures in

the consolidated financial statements.

PwC

64
2022 Annual Report



Description of the key audit matterHow our audit addressed the key audit matter

Forecast compliance with bank

financial covenants

As at 31 March 2022 the Group’s net debt

was $52.3 million. Notes 1.1 and 5.1 to

the consolidated financial statements

explain that the Group’s bank borrowings

comprise a syndicated revolving loan

facility, with certain financial covenants.

This facility expires in October 2023.

Prior to year end, the Group obtained

temporary covenant amendments to ease

its financial covenants for future test

dates. The Group complied with all

covenants throughout the year.

As disclosed in note 1.1, the Group has

assessed forecast compliance with these

financial covenants for the foreseeable

future and the Directors have concluded

that the Group will be able to comply with

those requirements for at

least 12 months

after the approval of the consolidated

financial statements.

We have read the syndicated revolving loan facility

agreement and the amendments to that agreement.

We obtained the Group’s financial covenant

compliance forecast for the next 12 months from the

date of the approval of the consolidated financial

statements. Our procedures included:

●Assessing the reasonableness of management’s

for

ecasts in light of historical performance, our

analysis of the forecasts used in the goodwill

impairment tests, operational factory production

data up to mid June 2022 and production order

data for the remainder of the month of June 2022.

●Performing analytical and other substantive audit

procedures on the results for the two month

period to 31 May 2022. The substantive

procedures included obtaining evide

nce regarding

the timing of recognition of a sample of sales

transactions and reviewing selected balance

sheet reconciliations.

●Evaluating the reasonableness of the Group’s

sensitivities to the forecast by performing our own

sensitivities and stress tests of significant

assumptions to assess the level of forecasting

risk at each test date.

●Reading the disclosures in notes 1.1 and 5.1 to

ensure they accura

tely reflect our understanding

of the circumstances.

PwC

Independent Auditor’s Report
65



Description of the key audit matterHow our audit addressed the key audit matter

5R Solutions loan

As disclosed in notes 3.5, 6.7 and 6.8 of

the consolidated financial statements, the

Group has a loan agreement with 5R

Solutions Limited (5R Solutions).

During the year ended 31 March 2022 it

was identified that the accounting

treatment of this loan agreement as a

financial asset at amortised cost was

incorrec

t and it should be recognised at

fair value through profit or loss.

Management valuations were performed

for the loan agreement at the balance

sheet dates: 1 April 2020 ($2.0 million), 31

March 2021 ($2.6 million) and 31 March

2022 ($2.1 million).

In the current consolidated financial

statements the corresponding financial

information for the year ended 31 March

2021 has been restated to reflect the

amended

accounting treatment and the

valuation of the loan agreement.

This was determined to be a key audit

matter due to the complexity and

judgements involved in determining the

accounting treatment of the loan

agreement and valuing this financial

asset, and due to the financial

significance of the gains recognised

during both years (note 2.6).

Our audit focused on the judgements used in

determining the accounting

treatment for the loan

agreement and the methodology and judgements

involved in the valuation of the loan agreement.

Our procedures in relation to the accounting treatment

included:

●Gaining an understanding of the loan agreement

and relationship with 5R Solutions through

reading the agreement and discussions with

management.

●Considering management's view on the

accounting classification of the loan agree

ment in

accordance with the requirements of the relevant

accounting standard, including the judgements

involved in this analysis.

●Engaging our in-house accounting technical

specialists to challenge the work performed by

management and perform their own analysis of

the accounting treatment.

Our procedures in relation to the valuation included:

●Gaining an understanding of the 5R Solutions

business by review

ing relevant financial and

non-financial information on the business and

discussions with management.

●Engaging our in-house valuation expert to

challenge the work performed by management, to

consider the reasonableness of the valuation

approach and assess the reasonableness of the

significant assumptions, based on their

knowledge gained from reviewing valuations of

similar entities, known transactions and

available

market data.

●Testing the accuracy of the data and calculations

in management’s valuation models.

We considered the appropriateness of disclosures in

the consolidated financial statements.


PwC

66
2022 Annual Report



Our audit approach


Overview

Overall group materiality: $874,000, which represents approximately 5% of

weighted average earnings before interest, tax, depreciation, amortisation and

significant items (impairment of intangible assets, restructuring expenses and

gain on the sale and leaseback of vehicles) (EBITDA). A higher weighting was

applied to the current year.

We chose to use a weighted average over the last three years’ EBITDA and to

adjust it as described above because, in our view, it provides a

more stable

measure of the Group’s performance by moderating the impacts of the

COVID-19 pandemic in the current year and of other significant and irregular

expenses and gains. EBITDA is also a key measure of the performance of the

Group.

Following our assessment of the risk of material misstatement, we performed:

●full scope audits on the Group’s two trading entities

●substantive audit procedures on selected significant balances in the

remaining non-trading entities and on consolidation entries, and

●analytical review procedures on all the remaining non-trading entities.

As reported above, we have three key audit matters, being:

●Goodwill impairment tests

●Forecast compliance with bank financial covenants

●5R Solutions loan


As part of designing our audit, we determined materiality and assessed the risks of material

misstatement in the consolidated financial statements. In particular, we considered where

management made subjective judgements; for example, in respect of significant accounting estimates

that involved making assum

ptions and considering future events that are inherently uncertain. As in all

of our audits, we also addressed the risk of management override of internal controls, including among

other matters, consideration of whether there was evidence of bias that represented a risk of material

misstatement due to fraud.

Materiality

The scope of our audit was influenced by our application of materiality. An audit

is designed to obtain

reasonable assurance about whether the consolidated financial statements are free from material

misstatement. Misstatements may arise due to fraud or error. They are considered material if,

individually or in aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of the consolidated financial statements.

Based on our profession

al judgement, we determined certain quantitative thresholds for materiality,

including the overall Group materiality for the consolidated financial statements as a whole as set out

above. These, together with qualitative considerations, helped us to determine the scope of our audit,

the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both

individually and

in aggregate, on the consolidated financial statements as a whole.

How w e tailored our group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion

on the consolidated financial statements as a whole, taking into account the structure of the Group, the

accounting processes and controls, and the industry in which the Group operates.

The mat

eriality levels applied in the full scope audits of the New Zealand and Australian businesses

were calculated by reference to a portion of Group materiality appropriate to the relative scale of the

business concerned.

PwC

Other information
The Directors are responsible for the other information. The other information comprises the

information included in the Annual Report, but does not include the consolidated financial statements

and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do

not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the

other information and, in doing so, consider whether the other information is materially inconsistent

with the consolidated financial statements or our knowledge obtained in the audit, or otherwise

appears to be materially misstated. If, based on the work we have performed on the other information

that we obtained prior to the date of this auditor’s report, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in

this regard.

Responsibilities of the Directors for the consolidated financial statements

The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of

the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal

control as the Directors determine is necessary to enable the preparation of consolidated financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Directors are responsible for assessing the

Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless the Directors either intend to liquidate

the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial

statements, as a whole, are free from material misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always

detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of these consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial statements is

located at the External Reporting Board’s website at:

https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/

This description forms part of our auditor’s report.

Who we report to

This report is made solely to the Company’s shareholders, as a body. Our audit work has been

undertaken so that we might state those matters which we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our

audit work, for this report or for the opinions we have formed.

The engagement partner on the audit resulting in this independent auditor’s report is Troy Florence.

For and on behalf of:

Chartered AccountantsAuckland

22 June 2022

PwC

67

Metro Performance Glass’
(Metroglass, the company)

board and Senior Leadership

Team (SLT) recognise the

importance of sound corporate

governance and consider it

core to ensuring the creation,

protection and enhancement

of shareholder value.

Together, the board and SLT are

committed to making sure that the

company applies and adheres to

practices and principles that ensure

good governance and maintain the

highest ethical standards to protect

the interests of all stakeholders.

This corporate governance statement

reflects a summary of the company’s

corporate governance framework,

policies and procedures and how

they comply with the NZX Corporate

Governance Code (the Code). The full

corporate governance framework has

been approved by the board and key

policies and charters are available in the

Investor Centre section of the company’s

website at https://www.metroglass.

co.nz/investor-centre/governance/.

The information in this section is

current as at 27 May 2022 and has been

approved by the board. Metroglass

considers that, during the year to

31 March 2022 (reporting period),

the company materially complied with

the Code.

Metroglass’ shares are also listed on the

Australian Securities Exchange (ASX)

with ASX Foreign Exempt Listing status.

Given this status, the ASX requires

the company to comply with the NZX

Main Board Listing Rules and confirm

its adherence to these rules annually,

and to comply with a specific subset

of the ASX Listing Rules.

PRINCIPLE 1: CODE OF

ETHICAL BEHAVIOUR

“Directors should set high standards of

ethical behaviour, model this behaviour,

and hold management accountable

for these standards being followed

throughout the organisation.”

Code of Ethics

Metroglass has a Code of Ethics

that establishes a framework of

standards by which the directors,

employees, contractors and advisors

of Metroglass are expected to carry

out their responsibilities. It is not an

exhaustive list of acceptable behaviour;

rather it facilitates decision-making

that is consistent with Metroglass’

values, business goals and legal and

policy obligations.

The Code of Ethics also imposes a

number of obligations on directors,

including requirements that they give

proper attention to the matters before

them; be up to date on their regulatory,

legal, fiduciary and ethical obligations;

undertake training; manage breaches

of the Code of Ethics; and act honestly

and in the best interests of the issuer,

shareholders and stakeholders and

as required by law.

Metroglass monitors compliance

with the Code of Ethics through

its management processes as

well as through the whistleblowing

procedures set out in the Code of

Ethics and separate Whistleblower

Protection Policy. The Code of Ethics

and Whistleblower Protection Policy

were both reviewed and updated in

November 2021.

Securities Trading Policy

The company’s Securities Trading Policy

governs trading in the company’s shares

and any associated financial products

(during the reporting period these were

Metroglass’ NZX- and ASX-listed shares).

The policy applies to all directors,

employees and contractors of

Metroglass and its subsidiaries

(“Metroglass Personnel”). The policy is

a critical part of ensuring all Metroglass

Personnel are aware of their obligations

and legal requirements and takes into

account the insider trading prohibitions

in the Financial Markets Conduct Act

2013 (NZ) and the Corporations Act 2001

(Australia), and the company’s obligations

under the NZX Code.

The policy also sets out a set of more

stringent rules which apply to directors

and certain employees of Metroglass

when dealing in Metroglass Securities

(“Restricted Persons”). These additional

rules include trading being prohibited

during the “blackout” periods set out in

the policy and consent being obtained

prior to trading with the Restricted

Person required to confirm they hold

no material information.

The policy is reviewed at least every

two years and was last reviewed in

September 2021.

CORPORATE

GOVERNANCE

METRO PERFORMANCE GLASS LIMITED:

FY22 CORPORATE GOVERNANCE STATEMENT

68

2022 Annual Report

PRINCIPLE 2: BOARD COMPOSITION
AND PERFORMANCE

“To ensure an effective board,

there should be a balance of

independence, skills, knowledge,

experience and perspectives.”

The board has ultimate responsibility

for the strategic direction of

Metroglass and for overseeing

Metroglass’ management for the

benefit of its shareholders.

Metroglass’ constitution provides

for a minimum of four directors and,

subject to this limitation, the number

of directors to hold office shall be

fixed from time to time by the board.

At least two directors must be ordinarily

residents of New Zealand and at least

two must be independent directors.

The Chair of the Board cannot be the

CEO or the Chair of the Audit and

Risk Committee.

The directors bring a wide range of

skills to the board including expertise

in corporate strategy, national and

international business and financial

management, sales, marketing, mergers

and acquisitions, legal, capital markets,

industry experience and corporate

governance. As at 27 May 2022, the

board comprised six independent

directors. Director profiles and length

of service are detailed on pages 22

and 23 of this report.

Board Charter

The board operates under a written

Charter, which describes the board’s

authority, duties, responsibilities,

composition and framework for

operation. This Charter also affirms

that the board, in performing its

responsibilities, should act at all times

in a manner designed to create and

build sustainable value for shareholders

and in accordance with the duties and

obligations imposed on the board by

Metroglass’ constitution and by law.

The Charter is reviewed at least every

two years and was last reviewed in

April 2021.

Management of Metroglass on a day-

to-day basis is undertaken by the CEO

and senior managers through a set

of delegated authorities that clearly

define the CEO and senior managers’

responsibilities and those retained

by the board.

Metroglass’ board and CEO-delegated-

authority policies are reviewed at least

annually and were last reviewed in

December 2021. The board meets its

responsibilities by receiving reports and

plans from management and through

its annual work programme. The board

uses committees to address issues

that require detailed consideration.

Committee work is undertaken by

directors; however, the board retains

ultimate responsibility for the functions

of its committees and determines

their responsibilities.

Nomination and Appointment

of Directors

The provisions regarding the election and

retirement of directors are contained in

the Metroglass constitution.

Metroglass strives to ensure that the

company has the right mix of skills and

experience it requires to enable it to

achieve its strategic aims in a prudent

and responsible manner. The board

will review its composition from time

to time and will identify and evaluate

suitable individuals for appointment as

a director as and when an appointment

is to be made. In evaluating a candidate

for appointment as a director, the board

will consider criteria including the skill

sets required at the time as well as the

individual’s experience and professional

qualifications. To support the board in

its deliberations, the directors consider

a skills matrix that sets out the mix of

skills and diversity of the directors and

evaluates whether the collective skills

and experience of the directors meet

Metroglass’ requirements both now

and into the future.

New directors provide the company

with a written consent to act as a

director and receive a formal Letter of

Appointment that sets out the Terms

and Conditions of Appointment and

Remuneration Schedule. It also sets

out the expectations of the company,

the director’s duties, responsibilities

and powers, insurance and indemnity

arrangements, and rights of access

to information. All new board members

are also provided with an extensive

briefing on the company and industry-

related matters within a thorough

induction process.

Selection of Chair

The Metroglass constitution

provides that the directors may

elect a chairperson of the company and

also determine the period for which

the chairperson is to hold office. Peter

Griffiths is an independent director and

is currently the appointed chairperson.

Retirement and re-election

The company’s constitution and NZX

Main Board Listing Rules require a

newly appointed director to stand for

election at the next Annual Shareholders’

Meeting (ASM). Julia Mayne and Jenn

Bestwick have been appointed as

directors since the last ASM and will

stand for election at the company’s 2022

ASM on 9 August 2022. There are no

directors retiring by rotation.

Director Independence

Directors are considered to be

independent if they are non-executive

and do not have an interest or

relationship that could be perceived

to unreasonably influence their

decisions relating to the company or

interfere with their ability to act in the

company’s best interests. An individual

being appointed as an independent

director must be independent according

to NZX definitions and not have any

disqualifying relationships as defined

in the Board Charter.

Directors are required to ensure

that they immediately advise the

board of any relevant new or changed

relationships to enable the board to

consider and determine any impact

on the director’s independence.

As at 27 May 2022, all six directors

are considered by the board to be

independent directors in accordance

with the NZX Main Board Listing Rules.

Information in respect of each director’s

ownership interests is detailed on

page 83 of this report. Metroglass’

directors are not formally required

to own Metroglass shares but are

encouraged to do so.

Director Training

The company encourages directors to

continue to develop their knowledge

and skills as a director. With the prior

approval from the Chair, directors

may attend appropriate courses or

seminars for continuing education

at the company’s cost.

Corporate Governance

69

Board, Director and Committee Evaluation
In accordance with the Board and Committee Charters, the board annually reviews its performance, policies and practices. It also

reviews annually the performance of each director and board committee. These reviews are carried out both formally and informally.

The last full board performance review was completed in May 2021 with the assistance of governance services firm Propero

Consulting. The next review will take place during the current calendar year. The Audit and Risk Committee was last reviewed in

February 2022 and the People and Culture Committee was last reviewed in May 2022.

Directors’ skills matrix as at 31 March 2022

Strategic board skillsNumber of

directors

with high and

moderate

capabilities

Area of future

learning or

potential

appointment

Building products and manufacturing


Australian market knowledge


Safety

Commercial/risk – former CEO

Financial expert

Strategic investment banking


B2B marketing and customer insight


People and culture

Governance

Diversity (gender, age, ethnicity etc.)


Key

High capability Moderate capability

As at 31 March 2022 (and 31 March 2021 for the prior comparative period), the mix of gender among the company’s board and

SLT was:

31 March 2022FemaleMaleTotal% Female

Board24633%

Senior Leadership Team36933%

31 March 2021FemaleMaleTotal% Female

Board15617%

Senior Leadership Team371030%

70

2022 Annual Report

Diversity and Inclusion
Metroglass and its board believe that

an equal opportunity workplace in which

differences in gender, age, ethnicity,

nationality, religion, sexual orientation,

physical ability, marital status, experience

and perspective are well represented.

This results in a competitive advantage

and helps the company to better connect

with its diverse set of customers and

other stakeholders.

The company believes that an ability to

attract and retain a diverse and inclusive

workforce broadens the recruitment

pool of high-calibre candidates, enhances

innovation and improves business

performance. A copy of the company’s

Diversity and Inclusion Policy is available

in on the company’s website.

Metroglass has an ethnically diverse

workforce, reflective of the communities

in which we operate, represented by

employees from over 20 countries.

Metroglass is committed to providing

an inclusive and diverse environment

throughout the company. The company’s

focus in FY23 is on making deliberate

and conscious steps towards building

a greater awareness of the importance

of diversity and inclusion in the

workplace. Specific objectives include:

• Reviewing current recruitment

practices, removing any bias in

vacancy wording or imagery and telling

the Metroglass story by developing

videos showcasing employee diversity.

• Continuing to build on the progress

made to date with each hiring manager

receiving unconscious bias training.

• Introducing and rolling out a flexible

workplace policy.

In the 2022 financial year the diversity

and inclusion objectives were to:

• Conduct diversity and inclusion training

for all hiring managers to ensure the

recruitment process is inclusive and

helps attract a diverse range of talent.

• Take at least 50% of senior managers

through unconscious bias training.

All senior managers participated

in a Diversity of Thought workshop

highlighting the importance of diverse

views in a group when solving complex

problems. Progress was made with some

managers undertaking unconscious bias

training through the year with further

progress on this to be implemented

through FY23.

How is our workforce made up?

Gender (March 2022)

Female: 13%Male: 87%

Age (March 2022)

8%

23%

26%

25%

16%

2%

16-2425-3435-4445-5455-6565+

Note: Workforce diversity data sourced from staff surveys

Corporate Governance

71

The board periodically reviews the
need for additional committees. Each

committee operates under charters

approved by the board, and any

recommendation committee members

make are directed to the board.

Management attendance at committee

meetings is by invite only.

The board’s committees and their

members as at 27 May 2022 were:

• Audit and Risk Committee: Graham

Stuart (Chair), Jenn Bestwick and Julia

Mayne

• People and Culture Committee:

Mark Eglington (Chair),

Peter Griffiths and Rhys Jones.

Audit and Risk Committee

The Audit and Risk Committee is

responsible for overseeing the risk

management framework, treasury,

insurance, accounting and audit activities

of Metroglass. It reviews the adequacy

and effectiveness of internal controls,

reviews the performance of external

auditors, oversees internal audit

matters, and makes recommendations

on financial and accounting policies.

The Audit and Risk Committee Charter

is reviewed at least every two years and

was last reviewed in November 2020.

Members of the Audit and Risk

Committee are appointed by the

board and comprise a minimum of three

members who are each non-executive

directors of Metroglass. A majority of

members must be independent directors

and at least one director must have an

accounting or financial background.

People and Culture Committee

The People and Culture Committee’s

mandate is to assist the board in

ensuring the elements of people,

organisation and culture support the

company’s strategy and business plan.

The committee achieves its goals by

considering capability of the organisation

at the senior levels, the remuneration

strategy required to secure the desired

level of organisational capability,

company values and policies related to

people, and the nominations process for

the appointment and succession planning

of the CEO. The People and Culture

Committee Charter is reviewed at least

every two years and was last reviewed

in April 2021.

The People and Culture Committee

is comprised of at least two, and not

more than four, independent directors.

Takeover Protocol

Metroglass has adopted a Takeover

Response Policy to assist in guiding the

board and management in the event

that the company receives an offer or

an approach by a potential acquirer for

a controlling stake in Metroglass. This

policy is reviewed at least every three

years and was last approved by the

board in December 2020.

PRINCIPLE 3: BOARD COMMITTEES

“The board should use committees where this will enhance its effectiveness in key areas, while still retaining board responsibility.”

In the year to 31 March 2022, the board had two standing committees, being the Audit and Risk Committee and the People and

Culture Committee.

Board and Committee Composition and Attendance 12 Months to 31 March 2022

DirectorBoard meetings

attended

Audit and Risk

Committee

meetings attended

People and Culture

Committee meetings

attended

Appointed/

Resigned

Meetings held1564

Standing Directors

Peter Griffiths15/15

(c)

5/6Appointed: 02/09/16

Mark Eglinton14/154/4

(c)

Appointed: 01/04/20

Rhys Jones15/154/4Appointed: 01/04/18

Graham Stuart14/156/6

(c)

Appointed: 01/12/19

Julia Mayne9/94/4Appointed: 01/09/21

Jenn BestwickAppointed: 01/05/22

Past Directors

Russell Chenu6/62/2Appointed: 05/07/14

Resigned: 31/08/21

Angela Bull15/154/4Appointed: 05/05/17

Resigned: 04/04/22

(c) indicates Chair

72

2022 Annual Report

PRINCIPLE 4: REPORTING AND
DISCLOSURE

“The board should demand integrity in

financial and non-financial reporting,

and in the timeliness and balance of

corporate disclosures.”

Metroglass is committed to providing

financial reporting that is balanced, clear

and objective and informs shareholders

(both current and prospective) and

market participants of all information

that might have a material effect on the

price of its traded financial products.

The quality, integrity and timeliness of

external reporting and the company’s

compliance with the disclosure and

reporting obligations imposed under

the Listing Rules of NZX, ASX, the

Companies Act and other relevant

legislation are overseen by the Audit

and Risk Committee.

The company’s full-year statements,

which have been prepared in accordance

with the relevant financial standards,

are set out from pages 26 to 61 of

this Annual Report.

Market Disclosure Policy

The board has adopted a Market

Disclosure Policy, available on the

company’s website, which sets out

how the company will comply with its

disclosure and reporting obligations.

Metroglass is committed to ensuring

the timely disclosure of material

information about the Metroglass

Group and to making sure that the

company complies with NZX Main board

Listing Rules. The Board of Directors

is ultimately responsible for ensuring

Metroglass complies with the Market

Disclosure Policy and continuous

disclosure obligations. The board has

established a Disclosure Committee to

achieve this. The board also considers

at each board meeting whether any

information discussed at the meeting

requires disclosure.

The policy is reviewed at least every two

years and was last reviewed in May 2021.

Non-Financial Reporting

Metroglass is committed to providing

non-financial disclosures on matters

including strategic and operational

priorities for the year, risk management,

safety and wellbeing, and diversity and

inclusion. In the last year, the company

has begun to formalise its approach to

Environmental, Social and Governance

(ESG), adopting its first Environmental

Sustainability Policy outlining its

commitments, and introduced a

Sustainability Manager role to oversee

the group’s sustainability programme.

The Environmental Sustainability Policy

can be found on the company’s website.

The group has provided an update on

its progress towards ESG principles

on pages 20 and 21 and will continue

to develop these principles in

future reports.

PRINCIPLE 5: REMUNERATION

“The remuneration of directors and

executives should be transparent,

fair and reasonable.”

The Metroglass board believes its

practices ensure fair and reasonable

remuneration. The company’s

remuneration policies are aimed

at ensuring that the remuneration

of directors and all staff properly

reflects each person’s accountabilities,

duties, responsibilities and their level

of performance. They are also aimed

at making sure that remuneration is

competitive in attracting, motivating

and retaining staff of the highest calibre.

The company’s remuneration policies

and disclosures are covered in the

Remuneration section on pages 76

to 79 of this Annual Report.

PRINCIPLE 6: RISK MANAGEMENT

“Directors should have a sound

understanding of the material risks

faced by the issuer and how to manage

them. The board should regularly

verify that the issuer has appropriate

processes that identify and manage

potential and material risks.”

The identification and effective

management of the company’s risks is

a priority of the board. It is responsible

for identifying the principal risks

of Metroglass’ business, ensuring

an appropriate system of internal

compliance and control in managing and

mitigating risks is in place and monitoring

internal and external reporting, including

reporting to stakeholders.

The board has made the CEO accountable

for all operational and compliance

risks across the group including safety

and wellbeing (see below). The Chief

Financial Officer (CFO) has management

accountability for the implementation

of the risk framework across all the

company’s businesses.

As part of its risk management

framework, Metroglass continually

assesses risks against all relevant areas

of material business risk. Metroglass’

main risks and mitigation plans are

reviewed every six months. Metroglass

holds insurance policies to meet its

insurable risks.

The company engages external expertise

where relevant to ensure risks are

adequately understood and managed. For

example, during the year the company

undertook a cyber security maturity

assessment against international

standards which highlighted areas of

strong performance and provided the

basis for further cyber security projects

over the next one to two years.

Safety and Wellbeing

The safety and wellbeing of the

company’s people are fundamental to the

business. Accordingly, all regular board

meetings and risk reviews specifically

look at safety and wellbeing matters.

Metroglass has a clearly articulated

safety and wellbeing vision and strategy

which is understood and recognised

throughout the business. This vision is

underpinned by a clear set of principles

and a workplan to embed a strong safety

and wellbeing management system.

The company maintains a safety and

wellbeing risk register for both New

Zealand and Australia, which is reviewed

at least annually. During the year a

comprehensive and systematic risk

assessment of all operations across the

business was undertaken, generating a

risk profile for each of the main areas of

the business and providing a considered

view of the most critical safety risks to

the business. This ensures focus in the

right areas.

Metroglass believes that all injuries

are preventable and that its people

should get home safe every day. The

company has placed focus on mitigating

risks by automating activities and

providing mechanical assistance where

possible to reduce the manual handling

required across the business. The use

of appropriate personal protective

equipment and training in correct manual

handling practices also contributes to

reducing injuries.

Corporate Governance

73

Metroglass continues to focus on other factors affecting the safety and wellbeing
of staff in their working environment, such as noise and air quality. A series of

environmental monitoring exercises took place during the year, to make sure staff

are working in safe environments. The company also offers staff health and wellbeing

checks with occupational health experts. The company has continued to operate with

strong COVID-19 protocols in place ensuring a safe working environment as well as

supporting staff wellbeing throughout the pandemic.

Group Safety Performance

F22 F21F20F19F18

NZAGGGroup

15.33

7.94

6.31

10.37

8.03

5.48

5.89

5.48

4.76

6.28

7. 24

20.01

15.74

8.68

7.52

Total Reportable Incident Frequency Rate (TRIFR) is measured by calculating the number of medical treatment cases, and

lost-time injuries per 200,000 hours worked.

• Develop Metroglass’ material climate-

related risks and opportunities

that can impact business

operations and strategy.

• Consider potential and appropriate

metrics and targets.

PRINCIPLE 7: AUDITORS

“The board should ensure the quality

and independence of the external audit

process.”

The Metroglass Audit and Risk

Committee is charged with overseeing

all aspects of the external and internal

audit of the company. The Audit and Risk

Committee monitors the independence,

quality and performance of the external

auditors and recommends any change in

auditor appointment or audit fees.

The company does not have a standalone

internal audit function. External advisors

are employed to evaluate and improve

the effectiveness of the company’s risk

management and internal processes.

Progress and results on these projects

are reported regularly to the Audit and

Risk Committee or the board.

The Audit and Risk Committee is

authorised by the board, at Metroglass’

expense, to obtain such outside legal

or other independent information

and advice including market surveys

and reports, and to consult with such

management consultants and other

outside advisors as it views necessary

to carry out its responsibilities.

On at least one occasion each year,

the Audit and Risk Committee meets

with the external auditors without

management present.

Annual Shareholders’ Meeting

Shareholders have the opportunity

to ask questions of the board and

of the external auditors, who attend

the Annual Shareholders’ Meeting.

The external auditors are available to

answer questions from shareholders

in relation to the conduct of the

audit, the independent audit report

and the accounting policies adopted

by Metroglass.

PRINCIPLE 8: SHAREHOLDER RIGHTS

AND RELATIONS

“The board should respect the

rights of shareholders and foster

constructive relationships with

shareholders that encourage them

to engage with the issuer.”

Metroglass endeavours to keep its

shareholders informed of important

developments concerning the company

and encourages them to follow its

announcements. Metroglass believes

that effective engagement with

investors will benefit both the company

and investors. The Investor Centre

section of the company website

provides easy access to information.

Metroglass also communicates with

its shareholders through periodic

market announcements, periodic

investor briefings or site tours and

annual and interim reports. These are

released in accordance with NZX and

ASX disclosure requirements. The board

welcomes questions at the Annual

Shareholders’ Meeting.

The company’s Chair, CEO, CFO

and Investor Relations Officer

currently lead engagement with

shareholders and, in line with Metroglass’

Market Disclosure Policy, aim to be

responsive, to provide clear, accurate

and timely disclosures, and to provide

meaningful insight into the company

and the industry.

Climate-related Financial Risk

Metroglass recognises the importance

of building resilience in its business

strategy and operations, overlaying

the potential long-term implications

of climate change and the important

role its products play in reducing

the operating carbon within

New Zealand’s buildings.

As the climate-related reporting

standards begin to be developed and

introduced in New Zealand, the group

has commenced a programme of work

to ensure that the process and systems

to incorporate climate change are

appropriate for the business. In the

coming 12 months Metroglass will also

focus on developing an understanding

of the potential risks and opportunities

of climate change and reporting thereof

in line with the standards determined

by the External Reporting Board.

The key focus areas in the next year

are to:

• Incorporate climate-related

risk management into

Metroglass’ Enterprise Risk

Management framework.

• Collect a baseline of the Metroglass

greenhouse gas emissions.

74

2022 Annual Report

Electronic Communications
Shareholders are encouraged to

receive communications from, and

send communications to, the company

and its security registry electronically.

The shareholder contact point at the

company is: glass@metroglass.co.nz.

Annual Report

Metroglass’ Annual Reports and

Interim Reports are all available on

the company’s website at: http://www.

metroglass.co.nz/investor-centre/

annual-interim-reports. Shareholders

can elect to receive a printed copy

of these reports by contacting the

company’s share registrar, Link Market

Services. Any shareholder who does

request a hard copy of the Metroglass

Annual Report will be sent one in the

regular post.

Shareholder Voting Rights

In accordance with the Companies Act

1993, Metroglass’ Constitution and

the NZX Main Board Listing Rules, the

company refers major decisions which

may change the nature of the company

to shareholders for approval.

Metroglass conducts voting at its

shareholder meetings by way of a

poll and on the basis of one share,

one vote. Further information on

shareholder voting rights is set

out in Metroglass’ Constitution.

Notice of Annual Meeting

Metroglass’ previous annual meeting was

held on 6 August 2021. The notice of the

meeting was released to the market on

2 July 2021. Minutes of the meeting are

available on the company’s website at:

https://www.metroglass.co.nz/investor-

centre/annual-shareholders-meeting/.

The 2022 Annual Shareholders’ Meeting

is expected to be held on 9 August 2022

in Auckland. The time and place will be

provided by notice to all shareholders

nearer to that date.

Corporate Governance

75

DIRECTOR REMUNERATION
The company distinguishes the structure of non-executive directors’ remuneration from that of executive directors. Non-executive

directors are paid a fixed fee in accordance with the determination of the board. The total amount of remuneration and other

benefits received by each director during the year ended 31 March 2022 is set out below.

DirectorResponsibilities2022 Directors’ Fees

Standing Directors

Peter GriffithsChair of the Board, Member of the Audit and Risk Committee$160,000

Mark EglintonDirector, Chair of the People and Culture Committee$85,000

Rhys JonesDirector, Member of the People and Culture Committee$85,000

Graham StuartDirector, Chair of the Audit and Risk Committee$100,000

Julia MayneDirector, Member of the Audit and Risk Committee$52,500

*

Jenn BestwickDirector, Member of the Audit and Risk Committee

Past Directors

Angela BullDirector, Chair of the People and Culture Committee$85,000

Russell ChenuDirector, Member of the Audit and Risk Committee$37,500

**

Total$605,000

* Julia Mayne was appointed to the board, and as a member of the Audit and Risk Committee with effect from 1 September 2021.

** Russell Chenu resigned from the board with effect from 31 August 2021.

The Chair of the board receives $160,000 per annum (with no additional committee fees paid) and the non-executive directors

receive $80,000 per annum. The Chair of the Audit and Risk Committee receives an additional $20,000 per annum and other

members of the Audit and Risk Committee receive an additional $10,000 per annum. The Chair and members of the People and

Culture Committee receive an additional $5,000 per annum. Directors may also seek the board’s approval for special remuneration

should the specific circumstances justify this (2022: Nil). The company currently has no executive directors on the board.

The board reviews its fees on a periodic basis. The maximum aggregate amount of remuneration payable by Metroglass to the

non-executive directors (in their capacity as directors) is set at $614,000. This fee pool was last changed in May 2017.

Directors’ fees exclude GST, where appropriate. No retirement or termination benefits are paid to non-executive directors.

Directors are entitled to be refunded for reasonable travel and other expenses incurred by them in connection with their

attendance at board or shareholder meetings, or otherwise in connection with the Metroglass business. The company does not

offer an equity-based remuneration scheme for directors. The board considers that director and executive remuneration is

appropriate and is not excessive.

Directors and officers also have the benefit of Directors and Officers’ Liability insurance. This covers risks normally included in such

policies arising out of acts or omissions of directors and employees in their capacity as such. The insurance cover is supplemented by

the provision of director and officer indemnities from the company but this does not extend to criminal acts.

Executive Remuneration

The remuneration of members of senior management (CEO, SLT and certain direct reports) is designed to promote a higher-

performance culture, to secure the participant’s retention in Metroglass and to reward performance that underpins the

achievement of Metroglass’ business strategy and long-term shareholder wealth creation. The board is assisted in delivering

its responsibilities and objectives for executive remuneration by the People and Culture Committee.

The CEO’s performance is reviewed annually by the board. The CEO reviews the performance of the SLT and makes recommendations

to the board for approval in relation to the team’s remuneration and achievement of key performance indicators (KPIs).

The compensation structure of the CEO and senior management is made up of three elements:

• A fixed base salary

• A discretionary short-term incentive (STI)

• A long-term incentive (LTI).

76

2022 Annual Report

Short-term Incentives
Short-term incentives (STI) are at-risk payments designed to motivate and reward for performance, typically within that particular

financial year. The target value of an STI payment is set annually, usually as a percentage of the participant’s base salary. For the

2022 financial year, the relevant percentages varied from 10% to 50%.

The STI plans relate to achievement of annual performance metrics which aim to align executives to a shared set of KPIs based on

business priorities for the next 12 months.

In the 2022 financial year, the sole metric driving the STI plans for both New Zealand and Australia was:

TargetWeightingFY22 Result: NZFY22 Result: Australia

Earnings before interest and tax (EBIT)

performance100%Not AchievedNot Achieved

The payable rewards for each STI KPI target are determined by the level of performance achieved and are calculated on a

linear scale increasing from the ‘Minimum performance target’ and receiving 65% of the specified reward, up to the ‘Maximum

performance target’ and receiving 110% of the specified reward.

The board retains discretion on the payment of STI awards and will consider additional factors. For example, STI payments may be

withheld if there was a death or permanent material disability of any worker (exceptions may be made for a motor accident and

acts of God beyond management control).

Long-term Incentives (LTI)

The company’s LTI plan for the 2022 financial year was announced on 2 July 2021. The LTI plan is made up of both performance share

rights and share options. The LTI is designed to secure those employees’ retention in Metroglass and to reward performance that

underpins the achievement of Metroglass’ business strategy and long-term shareholder wealth creation. The key features of the

2022 LTI plan are as follows:

• Participants will be offered an annual award of a specified number of both performance rights and share options in Metroglass

(in accordance with the LTI rules).

• The performance rights will enable participants to acquire shares in Metroglass with no consideration payable, subject to

Metroglass achieving set performance hurdles and meeting certain vesting conditions.

• The share options enable participants to acquire shares in Metroglass at a specified exercise price, subject to Metroglass

achieving set performance hurdles and meeting certain vesting conditions.

A total of 8,895,315 share options and 3,913,216 performance share rights remain outstanding pursuant to the 2018, 2019 2020

and 2021 LTI plans as at 27 May 2022.

Chief Executive Officer’s Remuneration

Metroglass’ CEO Simon Mander joined the company on 19 November 2018. The former CEO departed on 31 March 2018.

Fixed CEO remuneration for the past five financial years (12 months to 31 March):

Fixed Remuneration

Financial yearCEOSalary

Other

benefits

*

Total fixed

remuneration

FY22Current$650,000$29,203$679,203

FY21Current$650,000$26,132$676,132

FY20Current$650,000$25,682$675,682

FY19Current$214,166

**

$8,173$222,339

FY18Former$550,000$20,385$570,385

* Other benefits include medical insurance and KiwiSaver.

** Pro-rated for a partial year.

Remuneration Report

77

Description of CEO’s remuneration for performance for the year ended 31 March 2022:
PlanDescriptionPerformance measures

Percentage

of maximum

awarded

STI

Set at 50% of fixed remuneration for

FY22 the highest STI target is achieved.

This year’s scheme allowed for additional

incentive payments should performance

exceed the top STI target.100%: EBIT performanceNil

LTI

Issued 21 May 2021. The first vesting date

is 4 June 2024 and no instruments have yet

had the chance to vest.

50% share options require Metroglass’

Total Shareholder Return (TSR) to exceed

a compound annual pre-tax rate that is 1%

above the company’s cost of equityn/a

50% performance share rights measured

against NZX 50 group TSR hurdlen/a

Pay for Performance – short-term incentives

Financial year of STI paymentCEO

Relevant

performance

period

% STI awarded

against

maximumSTI paid

FY23CurrentFY220$0

FY22CurrentFY2199.5$323,276

FY21CurrentFY200$0

FY20CurrentFY1959$96,364

*

FY19FormerFY180$0

**

FY18FormerFY1710$28,563

* Pro-rated for 4 months out of 12 following the CEO joining in November 2018.

** A separate one-off incentive payment was awarded to the departing CEO in the 2019 financial year as described in detail in the 2018 Annual Report.

Pay for Performance – long-term incentives

CEO

LTI

(initial grant

values)

*

% LTI

vested against

maximum

Span of LTI

performance periods

FY22Current162,500n/a05/06/21 – 04/06/24

FY21Current162,500n/a04/07/20 – 03/07/23

FY20Current162,500n/a07/06/19 – 06/06/22

FY19CurrentNiln/an/a

FY18Former125,000Nil

**

08/06/17 – 08/06/20

FY17Former125,000Nil

**

10/06/16 – 10/06/19

* These are LTI grant values (not payments), which require relevant hurdles to be met over specific performance periods. Performance with regard to the FY20 LTI scheme will be tested

in FY23.

** These holdings were cancelled when the former CEO left the company (the three-year holding hurdle was not met).

78

2022 Annual Report

Employees-Remuneration
The number of employees or former employees (including employees holding office as directors of subsidiaries) who received

remuneration and other benefits in their capacity as employees, the value of which was at or in excess of $100,000 and was paid to

those employees during the financial year ended 31 March 2022, is specified in the table below.

The remuneration figures shown in the “Remuneration” column include all monetary payments actually paid during the course of the

2022 financial year. This includes salary, STI payments that were paid during the year, and the value of performance share rights

and share options (LTI) expensed during the financial year. Remuneration shown below includes settlement payments and payments

in lieu of notice with respect to certain employees upon their departure from the company but does not include any amounts paid

post 31 March 2022 that relate to the year ended 31 March 2022.

RemunerationNumber of employees

$100,000-110,00048

$110,000-120,00038

$120,000-130,00016

$130,000-140,00014

$140,000-150,00015

$150,000-160,00015

$160,000-170,0006

$170,000-180,0005

$180,000-190,0003

$190,000-200,0006

$200,000-210,0002

$210,000-220,0003

RemunerationNumber of employees

$220,000-230,0001

$230,000-240,0004

$240,000-250,0003

$250,000-260,0001

$260,000-270,0002

$280,000-290,0002

$300,000-310,0001

$330,000-340,0001

$340,000-350,0001

$380,000-390,0001

$610,000-620,0001

$1,120,000-1,130,0001

Remuneration Report

79

STATUTORY
INFORMATION

SECURITIES EXCHANGE LISTING

Metroglass’ shares are listed on the New Zealand Securities Exchange (NZX) and Australian Securities Exchange (ASX).

Shares on issue as at 31 March 2022:

RegisterSecurityHoldersUnits

New ZealandMPG (NZX)2,727183,382,989

AustraliaMPP (ASX)1071,995,097

TotalMPG (Dual)2,834185,378,086

Securities issued, and still outstanding, under the 2017 – 2022 long-term incentive plans as at 31 March 2022:

Long-Term Incentive SchemeSecurityHoldersUnits

2019 Performance Share RightsMPG (NZX)24374,275

2019 Share OptionsMPG (NZX)241,193,009

2020 Performance Share RightsMPG (NZX)271,287,961

2020 Share OptionsMPG (NZX)273,434,556

2021 Performance Share RightsMPG (NZX)91,442,516

2021 Share OptionsMPG (NZX)92,704,717

2022 Performance Share RightsMPG (NZX)11808,464

2022 Share OptionsMPG (NZX)111,563,033

80

2022 Annual Report

Top 20 Shareholders
Metroglass’ top 20 registered shareholders as at 31 March 2022 were as follows:

RankInvestor name

Shares at

31 March 2022

%

Shares

1Masfen Securities Limited25,401,92913.7

2HSBC Nominees (New Zealand) Limited

1

21,866,08011.8

3Takutai Limited16,988,8319.16

4Accident Compensation Corporation

1

11,534,6956.22

5Benjamin James Renshaw5,386,2602.91

6New Zealand Depository Nominee4,273,9812.31

7Custodial Services Limited2,469,4291.33

8Trevor John Logan2,400,0001.29

9FNZ Custodians Limited1,928,1661.04

10Da Wei Chu Su1,580,0000.85

11ASB Nominees Limited1,462,2670.79

12Hui Wen Yang1,390,0000.75

13William Orr & Amy Amelia Orr1,200,0000.65

13Eric Francis Barratt & Hyun Ju Barratt1,200,0000.65

13Andrew Rutherford Wallace & Miranda Ruth Burdon1,200,0000.65

14Kevin John Summersby1,101,5000.59

15Jonathan Mapp1,001,0000.54

16Gmh 38 Investments Limited1,000,0000.54

16Bowenvale Investments Limited1,000,0000.54

16Weijun Zhang & Yuhua Yang1,000,0000.54

Totals:Top 20 registered holders of ordinary shares105,384,13856.85%

Totals:Remaining holders’ balance79,993,94843.15%

1 Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial depository service which allows electronic trading of securities by its

members and does not have a beneficial interest in these shares. As at 31 March 2022, a total of 33,400,775 Metroglass shares (or 18.02% of the ordinary shares on issue) were

held through NZCSD.

Substantial Shareholders

According to the records kept by the company under the Financial Markets Conduct Act 2013 the following were substantial

holders in the company as at 31 March 2022. Shareholders are required to disclose their holdings to Metroglass and to its

share registrar by giving a ‘Substantial Shareholder Notice’ when:

• They begin to have a substantial shareholding (5% or more of Metroglass’ shares)

• There is a subsequent movement of 1% or more in a substantial holding, or if they cease to have a substantial holding

• There is any change in the nature or interest in a substantial holding.

Investor name

Number of shares

as at 31 March 2022%

Date of most

recent notice

Masfen Securities Limited25,401,92913.7017/02/20

Bain Capital Credit, LP21,162,86211.4230/11/18

Takutai Limited16,988,8319.1614/02/22

Accident Compensation Corporation11,534,6956.2225/03/19

Statutory Information

81

Distribution of Shareholders
As at 31 March 2022:

Range

Number of

holders%

Number of

shares%

1 – 1,0002418.50160,8250.09

1,001 – 5,00091432.252,619,1471.41

5,001 – 10,00049117.334,019,8302.17

10,001 – 50,00085430.1320,769,18511.2

50,001 – 100,0001635.7511,931,6316.44

Greater than 100,0001716.03145,877,46878.69

Total2834100.00%185,378,086100.00%

Voting Rights

Section 15 of the company’s constitution states that a shareholder may vote at any meeting of shareholders in person or through

a representative. Metroglass conducts voting by way of a polls; using this method every shareholder present (or through their

representative) has one vote per fully-paid-up share they hold. Unless the board determines otherwise, shareholders may not

exercise the right to vote at a meeting by casting postal votes. More detail on voting can be found in Metroglass’ constitution

available on the company’s website at: www.metroglass.co.nz/investor-centre/governance/.

Trading Statistics

Metroglass is listed on both the NZX and ASX. The trading ranges for the period 1 April 2021 to 31 March 2022 are as follows:

NZX (NZD)ASX (AUD)

Minimum:$0.285 (23/03/21)$0.295 (30/03/22)

Maximum:$0.46 (17/08/21)$0.45 (17/09/21)

Range:$0.285 – $0.46$0.295 – $0.45

Total shares traded26,637,416366,222

1 Trading in Metroglass shares on the ASX is less liquid than it is on the NZX. The final date on which shares were traded on the ASX during the 12 months to 31 March 2022 was

30 March 2022.

Dividend Policy

Dividends and other distributions with respect to the shares are only made at the discretion of the board of Metroglass.

Any dividend can only be declared by the board if the requirements of the Companies Act 1993 are also satisfied. The board’s

decision to declare a dividend (and to determine the quantum of the dividend) for shareholders in any financial year will depend on,

among other things:

• All statutory or regulatory requirements

• The financial performance of Metro Performance Glass

• One-off or non-recurring events

• Metroglass’ capital expenditure requirements

• The availability of imputation credits

• Prevailing business and economic conditions

• The outlook for all of the above

• Any other factors deemed relevant by the board.

Over the past four financial years, the company has prioritised debt reduction and worked towards achieving a leverage ratio for

the Group (as measured by net debt to rolling 12-month EBITDA) of approximately 1.5 times. At 31 March 2022, this ratio was 3.7

times (on a pre-IFRS 16 basis).

No dividends have been declared in respect of the 2022 financial year. The impact of additional COVID-19 lockdowns and significant

supply chain disruption has delayed the resumption of dividends. Once business conditions allow, the company will seek to pay

dividends of between 50% and 70% of Net Profit After Tax before significant items, subject to several considerations including

those listed above.

82

2022 Annual Report

NZX and ASX Waivers
Metroglass does not have any waivers from the requirements of the NZX Main Board Listing Rules and has waivers in place with the

ASX that are standard for a New Zealand company listed on the ASX.

Metroglass has an ASX Foreign Exempt Listing on the ASX. This category is based on a principle of substituted compliance,

recognising that for secondary listings, the primary regulatory role and oversight rest with the home exchange. Metroglass

continues to have a full listing on the NZX Main Board.

Disclosure of Directors’ Interests

Directors disclosed, under section 140(2) of the New Zealand Companies Act 1993, the following interests as at 31 March 2022:

Director and CompanyPosition

Angela Jennifer Bull

Foodstuffs South Island LimitedDirector

Realestate.co.nzDirector

Real Estate Institute of New ZealandDirector

Tramco GroupChief Executive

Lisa Julia Mayne

n/a

Mark Kenneth Eglinton

NDA Group LimitedDirector/Shareholder/Officer

Sail City No 36 LimitedDirector/Shareholder

Snapper Rock International LimitedChair

Young Enterprise TrustTrustee

Peter Ward Griffiths

Another New Plane Co. LimitedDirector/Shareholder

Great Barrier Airlines LimitedDirector/Shareholder

New Zealand Business and Parliament TrustChair/Trustee

NZDS Properties (No 2) LimitedDirector/Shareholder

Rhys Jones

Resin & Wax Holdings LimitedChair/Shareholder

Ridley Corporation LimitedDirector

Vulcan Steel LimitedDirector/Shareholder

Vulcan Steel Pty LimitedDirector/Shareholder

Graham Robert Stuart

EROAD LimitedDirector

Leroy Holdings LimitedDirector/Shareholder

Northwest Healthcare Properties Management LimitedDirector

Tower LimitedDirector

Vinpro LimitedDirector

H4G LimitedChair

Statutory Information

83

Subsidiaries and Subsidiary Directors
Section 211(2) of the Companies Act 1993 requires the company to disclose, in relation to its subsidiaries, the total remuneration

and value of other benefits received by the directors and former directors, together with particulars of entries in the interests

registers made, during the year ended 31 March 2022.

No group employee appointed as a director of Metro Performance Glass Limited or its subsidiaries receives or retains any

remuneration or other benefits in their capacity as a director, and each is a full-time group employee. The remuneration and

other benefits of such employees and former employees (received as employees) totalling NZ$100,000 or more during the

year ended 31 March 2022 is included in the remuneration bandings disclosed on page 79 of this Annual Report.

As at 31 March 2022, Metroglass’ subsidiary companies and subsidiary directors were:

CompanyDirectors

Australian Glass Group (Holdings) Pty LimitedSimon Mander, Brent Mealings

Australian Glass Group Finance Company Pty LimitedSimon Mander, Brent Mealings

Australian Glass Group Investment Company Pty LimitedSimon Mander, Brent Mealings

Canterbury Glass & Glazing LimitedSimon Mander, Brent Mealings

Christchurch Glass & Glazing LimitedSimon Mander, Brent Mealings

Hawkes Bay Glass & Glazing LimitedSimon Mander, Brent Mealings

I G M Software LimitedSimon Mander, Brent Mealings

Metroglass Finance LimitedSimon Mander, Brent Mealings

Metroglass Holdings LimitedSimon Mander, Brent Mealings

Metropolitan Glass & Glazing LimitedSimon Mander, Brent Mealings

Taranaki Glass & Glazing LimitedSimon Mander, Brent Mealings

Directors’ Shareholding in Metroglass

The directors’ respective interests in Metroglass shares as at 31 March 2022 are as follows:

Number of shares

in which a relevant

interest is heldAcquisition datesDisposal dates

Angela Bull*65,82510/07/17, 30/08/17, 28/08/18 and 28/02/20n/a

Mark Eglinton40,00028/05/21

Peter Griffiths250,500Eight dates between 16/05/16 and 26/05/21n/a

Rhys Jones58,00031/08/18n/a

Graham Stuart100,00028/02/20n/a

Julia Mayne25,00023/02/22n/a

* Angela Bull resigned as a director on 4 April 2022. In accordance with the Metro Securities Trading Policy Angela Bull remains bound under the terms of this policy for six months from

resignation date.

Donations

For the year ended 31 March 2022, Metroglass, including its subsidiaries, made donations of $6,965.22 (2021: $9,143.49).

Net Tangible Assets Per Security

Net tangible assets per security at 31 March 2022: 16.62 cents (31 March 2021: 15.52 cents (restated)).

Currency

Within this Annual Report, all amounts are in New Zealand dollars unless otherwise specified.

Credit Rating

Metroglass has not requested a credit rating.

84

2022 Annual Report

Registered Office
5 Lady Fisher Place

East Tamaki

Auckland 2013

New Zealand

Email: glass@metroglass.co.nz

Phone: +64 927 3000

Board of Directors

Peter Griffiths – Non-Executive Chair

and Member of the People and Culture Committee

Rhys Jones – Non-Executive Director

and Member of the People and Culture Committee

Graham Stuart – Non-Executive Director

and Chair of the Audit and Risk Committee

Mark Eglinton – Non-Executive Director

and Chair of the People and Culture Committee

Julia Mayne - Non-Executive Director

and Member of the Audit and Risk Committee

Jenn Bestwick - Non-Executive Director

and Member of the Audit and Risk Committee

Senior Leadership Team

Simon Mander – Chief Executive Officer

Brent Mealings – Chief Financial Officer

Robyn Gibbard – GM Upper North Island

Nick Hardy-Jones – GM South Island

Nick Johnson – Chief Information Officer

Amandeep Kaur – Group Safety and Wellbeing Manager

Barry Paterson – GM Commercial Glazing and Technical

Andreas Paxie – GM Lower North Island

Dayna Roberts – Human Resources Director

Auditor

PricewaterhouseCoopers

15 Customs Street West

Auckland 1010

New Zealand

Lawyers

Bell Gully

Vero Centre

48 Shortland Street

Auckland 1140

New Zealand

Bankers

ASB Bank Limited

Westpac New Zealand Limited

Westpac Banking Corporation

Share Registrar

Link Market Services

Level 30, PwC Tower

15 Customs Street West

Auckland 1010

PO Box 91976, Auckland 1142

New Zealand

Further Information Online

This Annual Report, all our core governance documents

(our constitution, some of our key policies and charters),

our investor relations policies and all our announcements

can be viewed on our website:

www.metroglass.co.nz/investor-centre/

Investor Calendar

2022 Annual Shareholders’ Meeting9 August 2022

2023 Half Year balance date30 September 2022

2023 Half Year results announcementNovember 2022

2023 Full Year balance date31 March 2023

2023 Full Year results announcementMay 2023

COMPANY

DIRECTORY

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85

Company Directory

metroglass.co.nz

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.