Annual Shareholders’ Meeting Presentation and Addresses

METRO PERFORMANCE GLASS
2022 Annual
Shareholders’
Meeting
9 August 2022

Jenn Bestwick
Independent Non-Executive Director, Member of the
Audit and Risk Committee
Appointed: May 2022
Metro Performance Glass Board of Directors
2
Mark Eglinton
Independent Non-Executive Director, Chair of the
People and Culture Committee
Appointed: April 2020
Peter Griffiths
Independent Non-Executive Chair, Member of the
People and Culture Committee
Appointed: September 2016
Rhys Jones
Independent Non-Executive Director, Member of the
People and Culture Committee
Appointed: April 2018
Julia Mayne
Independent Non-Executive Director, Member of the
Audit and Risk Committee
Appointed: September 2021
Graham Stuart
Independent Non-Executive Director, Chair of the
Audit and Risk Committee
Appointed: December 2019

Today’s agenda
1.Welcome and introductions
2.Chair’s address
3.Chief Executive’s address
4.General business and shareholder questions
5.Formal business and resolutions
3

4
Chair’s address

Our strategy
5

Key messages
•The Group managed frequent and evolving Covid-19 disruptions
and other external pressures well, limiting supply volatility to
customers
•Strategic actions and investments in double glazing processing and
high-performance glass mean we are well positioned for the
upcoming changes in residential building regulation in both New
Zealand and Australia
•Demand for glass products in our markets has remained steady,
however higher input costs, New Zealand lockdowns and supply
chain disruptions materially impacted profitability in FY22
•Improved operational and financial performance in Australian
Glass Group, though turnaround delayed by Covid-19 disruptions
and extreme weather events
6

Metroglass’ framework guides our approach to capital allocation
New Zealand
Net operating cash flow
AGG
Net operating cash flow
Maintenance capital
circa. $8.0 m per annum
Strong balance sheet
Net debt to EBITDA range of 1.0x – 2.0x
Minimum dividend pay-out ratio
Debt
reduction
Additional
dividends
Share Buy-
backs
Organic
development
and growth
capex
Acquisition/
divestments
Net operating cash flow
(4) Excess cash
flow
•Net operating cash flows impacted by rapid increases in material costs
that are partially offset by a series of price increases, and a lower NZ
Government wage subsidy in FY22
•Strengthening Metroglass NZ and Australian Glass Group’s position in
their markets, ahead of supportive regulatory changes. Targeted
investments were made that deliver increased capability, capacity and
quality.
•We continue to focus on reducing group leverage to a target range of
1.0x to 2.0x net debt to EBITDA.
•Increase in FY22 driven by an increase to debt and reduced EBITDA,
including August and September lockdowns
•It remains the boards intention to resume a dividend programme as
soon as business conditions allow
7

8
Chief Executive’s address

ENVIRONMENTAL SOCIAL GOVERNANCE
•Good progress improving safety and wellbeing, with TRIFR trending lower
•Continued investment in the training and capability, including our
apprenticeship scheme, with 79 enrolled and 8 employees qualifying in FY22
•Launched a Group Environmental Sustainability policy, with initiatives focused
on carbon emissions and the consumption of resources (Water, Electricity)
OUR BUSINESS
•Managed service to our customers well with strong and clear communication,
sufficient stock levels and operational stability
•AGG’s transformation into a specialist double-glazing business continued in
FY22, with a modest improvement in EBIT despite Covid-19 headwinds
•Rapid increases in input costs impacted gross profit, which have been
addressed with significant price increases in both New Zealand and Australia
•Increases to net debt in FY22 driven by targeted investments in capability,
capacity, and quality, ahead of building insulation requirement changes and an
increase in safety stock levels to better manage supply volatility for customers
The Group made progress despite ongoing external pressures
9
New picture

Metroglass extends its reach into glass recycling with 5R Solutions
Limited (5R) investment
10
Who are 5 R Solutions Limited (5R)?
•Established in 2009, 5R Solutions specialisesin window glass
recovery in New Zealand.
•Two reprocessing sites located in Auckland and Christchurch,
moving and processing tens of thousands of tonnes of glass each
year.
•Capable of processing the full spectrum of waste flat glass that is
generated by commercial and post-consumer markets. Fully
developed in-house supply chain management for the collection
of waste glass and delivery of end products.
•Recycled glass is used in various new life products such as glass
wool insulation and filter mediums
•Metroglass is in the process of converting its loan to 5R solutions Limited to a 50% equity position
•Equity accounted results will be reflected in the Group’s financial statements for future reporting periods
•All Metroglass glass processing waste is recycled through 5R Solutions

Window and Glass Association awards:
Won the Designing with Glass – Residential for Ferg’shouse,
Sandy Bayfeaturing Metroglass toughened single glazed glass
installed by the Metro Direct Whangarei
Finalists:
•Design Awards – commercial Dunedin Mall glass floor over
historic pedestrian track (installed by the Metro Direct Dunedin
using triple play laminated safety glass (LSG))
•Designing with Glass – Commercial PuhinuiTrain Station
(Installatedby Metroglass Auckland Glazing using toughened
LSG, Digital print, Mirrors, Curved Glass, Toughened Processed
Glass, MFG Hardware)
NZ Workplace Health and Safety Awards:
Finalist - Business Leaders’ Health and Safety Forum Leader
of the Year – Simon Mander, reflecting Metroglass’ continued
drive for safety and wellbeing performance
Significant achievements in FY22
11

N L AT
$(0.5)m
(FY21: $7.2m)
GROUP
NEW ZEALAND
2
AUSTRALIA
Revenue
$236.1m
(FY21: $232.3m)
+2%
EBIT
$5.9m
(FY21: $17.2m)
-66%
Revenue
$178.0, -1%
(FY21: $179.8m)
EBIT
$7.4m, -61%
(FY21: $18.7m)
Revenue
$58.1m, +11%
(FY21: $52.5m)
EBIT
$(0.3)m, +57%
(FY21: $(0.7)m
Net debt
$52.3m
(FY21: $48.0m)
FY22 Financial snapshot
1
Unless otherwise stated, results are shown in NZ$mand before significant items. Details on the significant items are provided in note 2.4 to the financial statements.
2
The full segment note is available in note 2.1 of the financial statements.
Leverage ratio
3.78x
(FY21: 1.7x)
nm+4.3m
12
-$7.6m

1
Survey question: “On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?”
Our customers continue to rate our service positively and guide our
initiatives to improve
7.3
7.6
7.3
7.9
7.8
8.1
7.9
June 2019November
2019
June 2020December
2020
May 2021December
2021
May 2022
New Zealand
8.0
8.0
8.1
7.7
7.9
7.7
7.7
June 2019November
2019
June 2020December
2020
May 2021December
2021
May 2022
Australia
13

Changes to building insulation requirements support usage of Low E
glass in New Zealand, and penetration of double glazing in Australia
14
New Zealand
H1 insulation changes increase the use of high-
performing low-E glass in windows
Australia
National Construction Code changes increase the use
of double-glazing in Vic, Tas, ACT, regional NSW
•MBIE introducing changes to the minimum thermal
performance requirements for compliance with the Building
code H1 Energy Efficiency. First major change since the
introduction of Double Glazing in 2007/08
•6 climate zones to better reflect specific minimum insulation
requirements for their local climate
•Almost universally require use of Low Emissivity (Low E) glass to
comply
•Metroglass well-positioned with world-class facilities, people
and a range of high-performing LowE glass specifications
•National Construction Code (NCC) 2022 changes to Energy
Efficiency increases thermal performance requirements for
residential buildings
•A minimum standard of double glazing will be required in colder
climate zones (currently standard is achieved with single
glazing)
•Where standard aluminum frames are used, there will also be a
higher demand for advanced high performing Low E double
glazing
•Standards were introduced for commercial buildings in 2019,
with significant increases in double glazing
Implementation: from November 2022Implementation: expected late FY23

Thermal performance changes are the first major change since the
introduction of Double Glazing in 2007/08
15
1.Source: https://www.mbie.govt.nz/dmsdocument/13808-consultation-document-building-code-update-2021
2.Source: https://www.building.govt.nz/assets/Uploads/building-code-compliance/h1-energy-efficiency/asvm/h1-energy-efficiency-as1-5th-edition.pdf#page=23
3.Source: https://www.building.govt.nz/assets/Uploads/building-code-compliance/h1-energy-efficiency/asvm/h1-energy-efficiency-as1-5th-edition.pdf#page=9
Transition
•Current building code compliance for windows is achieved with
R0.26 thermal performance, applied to all zones
•New building code compliance increase all zones, in three phases:
•November 2022: All zones increasing 42% on todays thermal
performance to R0.37
•May 2023, split into 3 R value requirements, with the coldest
areas requiring R0.50 (an increase of 92% on todays thermal
performance)
•and a final step in November 2023. which brings zone 1 & 2
inline with 3 & 4, at a thermal performance of R0.46 (an
increase of 77% on todays thermal performance)
•Almost universally require the use of Low Emissivity (LowE) glass
to comply.
•Metroglass currently processes approximately 25% Low E in its
product mix, and is expected to increase to >95%

Activity in our markets
16
•Code of compliance issuance grew 6% in the year to March 2022, while
consents grew 24%
•Residential construction sector at capacity, as supply chain disruption
and labour availability restrict growth
New Zealand residential construction remains
steady, as capacity constraints widen the gap
between consents and actual activity
•Market conditions are solid, supported by several state and federal initiatives
•A combination of covid-19 restrictions, adverse weather events, disruptions
to international supply chains, and reduced labour availability have
contributed to a slower residential dwelling completion rate
Australian residential market is solid, as strong
approvals translate into activity. However, supply
constraints temper completion rates
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
South east Australia housing data
(rolling 12 months)
ApprovalsCommencementsCompletions
-
10,000
20,000
30,000
40,000
50,000
60,000
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Residential dwelling consents and Code of Compliance issurance on a
rolling 12 month
Code of Compliance issuanceResidential consents
1.Source:StatisticsNZ,numberofresidentialdwellingconsents(rolling 12 months).Nolaghasbeenapplied.
2.Source: Statistics NZ, experimental building indicators: March 2022, number of residential code of compliance issued (rolling12months). No lag has been applied.
3.Source: Australian Bureau of Statistics residential approvals, commencements and completions (rolling 12 months). No lag has been applied.

Rapid increases to input costs has created acute pressure, with
successful market pricing supporting a path to gross profit recovery
17
•In the prior 12 months, the weighted average cost per sqm of glass increased significantly, and rapidly
•Consist with other industries inflationary cost pressure has been evident across direct and indirect costs
New Zealand
•Metroglass has responded over the same time period with a number of price increases (a cumulative 26%), with a further price increase of 5% is
effective 1 September 2022
•The implementation of price increases were focused on improving gross profit performance from Q2 onwards
Australia
•In a market with traditionally lower market pricing for glass; AGG have implemented cumulative price increases of 39%, in-part reflecting cost
inflation pressures, but also supported by the increasing value being recognised in high performing glass throughout the industry

Trading update: April to July 2022
1
Softer activity levels in the first quarter (YTD), driven by industry supply
chain disruptions and labour availability that moderated execution
18
•YTD Group revenue similar to prior year; the volumes in New Zealand business were softer and the Australian business above the prior
year
•Strong residential consents and approvals, balanced by industry capacity constraints, should support a stable pipeline in NewZealand
and Australia
•New Zealand activity is impacted by ongoing market disruptions and industry-wide material and labour shortages and poses a risk
•Raw material and international shipping costs, while remaining historically high, have stabilised through Q1. The successful
introduction of price increases and improved pricing disciplines are beginning to demonstrate positive trends for margin recovery from
Q2 onwards.
•Sales in Australian Glass Group YTD are ahead of last year and are profitable, supported by strong market activity and consistent
service and operational performance across each of our regions
•Recruitment is challenging with a tight labour market and associated wage pressure
•Higher inventory costs leading to increased working capital funding requirements
1
Based on unaudited management accounts.

•New Zealand residential building consents are at record levels in the last 12
months. Capacity constraints in the industry mean that we expect building
activity continue, but the rate of execution due to wider industry issues likely to
be a drag
•Strong approvals activity in Australia and a similar capacity constrained industry
have created a solid pipeline of work
•Current construction sector conditions continue to drive a challenging outlook in
the short to medium term. Our focus remains on gross margin improvement,
with the inflationary pressures in our supply chain and the constraints on labour
not expected to improve in the near term
•Our strategic programme continues to unlock the potential of the business, with
investments in capability, quality, and a strong focus on improving our offering to
customers. This creates value opportunities for the business alongside building
insulation regulation changes to be introduced in our markets during FY23
•We will be focused on our cost base and be ready to adjust and respond to future
demand and activity levels
Metroglass is positioning for a challenging
market
19

Building resilience and
defending Metroglass’
leadership position in
New Zealand
Grow profitability in
Australia, benefiting from
increasing demand for
double-glazing
Ensure our balance
sheet is robust to cope
with future risks and
opportunities
We remain focussed on our strategy and near-term goals
20

21
General business and
shareholder questions

Resolutions
22

Resolution 1: Auditor
remuneration
To consider and, if thought fit, pass the following ordinary
resolution: That the Board be authorised to fix the fees
and expenses of PwC as Auditor for the ensuing year.
23

Resolution 2: Jenn Bestwick
Metro Performance Glass constitution and NZX Listing
Rule 2.7.1 require that any director appointed by the
board must retire from office at the next annual meeting
but is eligible to seek election.
Director Jenn Bestwick retires in accordance with this
requirement and offers herself for election.
24

Resolution 3: Julia Mayne
Metro Performance Glass constitution and NZX Listing
Rule 2.7.1 require that any director appointed by the
board must retire from office at the next annual meeting
but is eligible to seek election.
Director Julia Mayne retires in accordance with this
requirement and offers herself for election.
25

26
Thank you
Opportunity for questions

Metro Performance Glass Limited
5 Lady Fisher Place, East Tamaki, Auckland 2013
Ph: + 64 9 927 3000
www.metroglass.co.nz/
Simon Mander – Chief Executive Officer
Simon.Mander@metroglass.co.nz
(+64) 029 636 2661
Brent Mealings – Chief Financial Officer
Brent.Mealings@metroglass.co.nz
(+64) 027 551 6751
Liam Hunt – Investor Relations
Liam.hunt@metroglass.co.nz
(+64) 022 010 4377
Contact information
27

This presentation (“Presentation”) has been prepared by Metro Performance Glass Limited (Company Number 5267882) (“Metro
Performance Glass”).
Please do not read this Presentation in isolation
This presentation contains some forward looking statements about Metro Performance Glass and the environment in which the
company operates. Forward looking statements can generally be identified by the use of forward looking words such as “anticipate”,
“expect”, “likely”, “intend”, “should”, “could”, “may”, “propose”. “will”, “believe”, “forecast”, “estimate”, “outlook”, “target”, “guidance” and
other similar expressions. Forward looking statements, opinions and estimates provided in this presentation are inherently
uncertain and are based on assumptions and estimates which are subject to certain risks, uncertainties and change without notice.
Because these statements are forward looking, Metro Performance Glass’ actual results could differ materially. Any past
performance information in this presentation should not be relied upon as (and is not) an indication of future performance.
Media releases, management commentary and analysts presentations are all available on the company’s website. Please read this
presentation in the wider context of material previously published by Metro Performance Glass.
There is no offer or investment advice in this Presentation
This presentation is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment adviceor a
securities recommendation, and does not take into account any person’s individual circumstances or objectives. Every investor
should make an independent assessment of Metro Performance Glass on the basis of independent expert financial advice.
All information in this presentation is current at the date of this presentation, and all currency amounts are in NZ dollars,unless
otherwise stated. Metro Performance Glass is under no obligation to, and does not undertake to, update the information in this
Presentation, including any assumptions.
Disclaimer
To the maximum extent permitted by law, Metro Performance Glass and its affiliates and related bodies corporate, officers,
employees, agents and advisors make no representation or warranty (express or implied) as to the currency, accuracy, reliabilityor
completeness of the information in this presentation and disclaim all liability for the information (whether in tort (including
negligence) or otherwise) to you or any other person in relation to this presentation, including any error in it.
Disclaimer
28

---

5 Lady Fisher Place
East Tamaki
Auckland 2013


NZX: MPG, ASX: MPP

Metro Performance Glass Limited
Annual Shareholders’ Meeting, 8 August 2022


Chair’s Address
Metroglass’ vision is to be the leader in glass solutions. Our strategy is made of four pillars.
Delivering market-leading service to customers, developing our organisation capabilities, utilising
Metroglass Group’s scale and leadership position across the channels we operate in, and the quality
of our assets to deliver glass solutions efficiently.
The Board believes that this strategy still holds despite the difficulties and uncertainties of our times.
The financial year 2022 was a hard and challenging year for Metroglass, and we recognise that our
bottom-line result was disappointing. Simon will provide more detail so I will just highlight a few
points.
Our resilience was truly tested during this year. The business had to operate a range of complex
pressures, all while seeking to ensure we were able to supply to our customers’ requirements
consistently, and safely.
We were heavily impacted by the pandemic for a further year, by local effects through sickness and
absences of our own staff and those of our direct customers, and also by the restrictions placed on
the New Zealand community, particularly in Auckland, where we lost many days of sales while
continuing to incur the associated costs. Across the construction sector the ongoing effects continued
to be felt for a number of months after the restrictions were eased, and in some cases are still with us
today.
Additionally, there were the more global impacts, principally on the supply chain, where we still
experience high costs and unreliable shipping schedules, and the rapidly rising costs of raw materials.
During the latter part of FY22 we moved to re-establish our gross margin applying a series of price
increases, these actions also continuing into the current year.

2

These are the two main factors that have contributed to a lower profit and reduced operational cash
flows for the period. Our working capital increased driven by a greater volume of stock, and the cost
increases of that inventory, this also had a flow through effect to debtors.
Despite the reduced operating cash flow, we elected to continue with the majority of our capital
program, which was largely made up of long lead items. Improved double glazing and furnacing
capacity place Metro in a strong position ahead of the significant regulatory changes in New Zealand,
that are coming into effect from November this year.
Our capital investments and working capital changes has meant that our net debt increased during
the year and the associated cover ratios consequently declined. At year end we were still within the
agreed covenant boundaries and our lenders have been supportive.
This year as operations proceed, we believe we have now passed the peak and expect to see our debt
reducing once again, providing the global and local effects of the pandemic continue to diminish.
As well as noting the challenges of the pandemic, we should always remember that we are in a
competitive marketplace with an overhang of processing capacity. In NZ, our efforts to diversify our
customer portfolio are progressing well and there have been significant changes in our customer base
during the year. Sales in some segments and geographies have grown strongly, while we have
maintained our position in others.
Our operations in Australia continue to improve. Our reputation as a reliable supplier of high-quality
double-glazing is reflected in increasing sales demand and the associated improvement in bottom line
performance.
Our customers do have a real choice of suppliers and our strategic focus on customer relationships,
service performance and product quality has helped us sustain our market leadership position.
Some economic indicators are showing early signs of a decline in construction activity. Residential
construction costs are rising and will dampen demand eventually. Looking ahead we see a
continuation of challenging times.
The New Zealand building code changes aimed at providing better performing New Zealand homes
will mean a significant increase in the use of high value (LowE) glass, this will further increase the cost
to build a house, and this will come at a time of rising interest rates, housing affordability challenges
and inflationary pressures in the construction sector.
And of course, covid is still with us and as we have seen can have a material impact at quite short
notice.

3

The board and management continue to monitor a wide range of inputs and indicators and are
preparing for a number of potential outcomes including a reducing demand.
With this expectation of a challenging future.
The board remains focussed on ensuring that the company is a successful and enduring glass
processor, to do that it needs steady cash flows and a solid balance sheet.
As I outlined previously; our debt increased during the year and the associated ratios deteriorated. As
we move away from the pandemic effects of last year and cash flow is restored, our focus returns to
debt reduction once again. As we have consistently communicated, w e continue to aim for that elusive
ratio of 1.5 times net debt to EBITDA, and when we get there and other circumstances allow, we will
be in a position to consider declaring a dividend.
To conclude, I would like to take the opportunity, on behalf of the board, to thank our Metroglass
employees for their determination and resilience during this period and our, customers, suppliers and
shareholders for their continued commitment and support through another incredibly challenging
year.

Thank you, I will now ask Simon to follow with his presentation, after which we will open the meeting
for questions.

Chair Executive Officers address
Thanks Peter.
Good morning everyone and thank you all for joining us both here in Auckland and online.
My name is Simon Mander, and I am the CEO of Metro Performance Glass.
I’d like to start by recognising our people right across the Metroglass group. The pandemic presented
significant challenges for our teams again this year; their resilience has ensured that we have
continued to deliver our market leading products and services to our customers.
Once again, in New Zealand our operations were shut for a sizable period as a result of the lockdowns
in August and September 2021. The immediate impacts of the lost production days while still incurring
the costs, and the flow on impact on inventory holdings, supply disruption and escalating input costs,
significantly impacted financial performance.

4

Australian Glass Group progressed on their turnaround plan, with stable operational performance and
delivered a modestly improved EBIT result even despite the impacts of Covid-19 and the heavy
flooding in New South Wales.
While our net debt has increased this financial year, we have built buffer into our inventory levels to
deal with ongoing supply chain disruption and invested in a series of capital items that are set to
improve our capacity, quality, and capability, for the future home insulation changes in both NZ and
Australia.
I am also proud of the progress we have made in our environmental, social and governance
commitments. Our safety performance continues to improve, and this remains a key focus for the
leadership team.
The apprenticeship scheme provides development opportunities for our people to grow. 79 staff are
currently enrolled in the programme and 8 apprentices qualified during the year.
We are also beginning to bring together our sustainability programme of initiatives, with a focus for
the coming year on understanding our carbon emissions and how we can take action to reduce this
over time, along with the climate risk related disclosures in future reporting periods.
Metroglass is in the process of converting its loan in 5R solutions Limited to a 50% equity position,
which will be equity accounted in our financials in the future.
5R are a glass recycling business capable of processing the full spectrum of waste flat glass that is
generated by commercial and post-consumer markets and includes all of the processing glass waste
from Metroglass.
5R have two reprocessing facilities in Auckland and Christchurch that recycles the glass into various
new life products, such as feedstock for glass wool insulation and filter mediums.
We are proud to be partnering with 5R.
As the largest processor of flat glass in New Zealand we have the opportunity and responsibility to
take positive action in our efforts towards sustainable outcomes for our communities and the
environment.
Over the last year Metroglass has received recognition and a number of awards, and I’d like to share
some of them with you today.
• In the 2022 Window and Glass Association Awards, Metroglass won the Designing with Glass
– Residential award. As you can see in the picture, the architect designed a ships head

5

protected wind break which was installed by our Metro Direct Whangarei team using large
and heavy toughened single glazed units.
• We were also the finalist in many other awards, including the New Zealand Health and Safety
Awards – Business Leaders’ Health and Safety Forum Leader of the Year, reflecting Metroglass’
continued drive for safety and wellbeing performance.
I’ll now provide you with a brief summary of the group’s financial performance for the 2022 financial
year:
• Group EBIT of $5.9 million was at the low end of our range of our February guidance.
• The impact of the New Zealand Covid-19 shutdown during the year was severe. The rapid
escalation of input costs also had a significant impact on profitability compared to last financial
year.
• Our leverage ratio is above our capital management targets and, consequently, our focus for
FY23 will be on essential capital and debt reduction.
• While net debt has increased from last year, we built contingency in our inventory holdings to
navigate ongoing supply chain disruptions and invested in future capital equipment capability
in both NZ and Australia.
In May 2022 we conducted the seventh of our 6-monthly customer surveys. These surveys provide us
with feedback and guide our initiatives to address specific issues and general service levels and
develop ways to generate value for our customers.
Overall, our ratings in New Zealand and Australia were largely consistent with previous surveys despite
prolonged covid-19 operating challenges throughout the year. Customers were complimentary of our
people, our communication and customer service, and overall responsiveness to their needs.
The supply disruptions right across the construction industry are also of concern for our customers,
and we continue to make efforts to reduce volatility and impacts within our own supply chain.
I’d like now to take a moment to outline the supportive regulatory changes that are occurring in both
Australia and New Zealand.
In Australia, we have talked previously about the 2022 National Construction Code changes that are
to be introduced early in the 2023 calendar year. The changes to the thermal performance
requirements are like that seen in New Zealand in between 2007 and 8. These code changes will
necessitate the use of double glazing of a minimum standard to meet the NCC standard requirements
in the colder climate zones of Australia. In some cases, where standard aluminum frames are used
there will be a requirement to use higher performing Low E double glazing.

6

NCC changes in 2019 were for commercial buildings, and the AGG business saw an uptake in double
glazing sales as a result.
In New Zealand, the Ministry for Business, Innovation and Employment are introducing changes to the
minimum thermal performance requirements to comply with the new building H1 Energy Efficiency
code. This is the first major change since the introduction of Double Glazing in 2007 and 8.
There is a significant amount of detail available in the MBIE consultation documentation, but I’ll briefly
summarise for you now.
New Zealand will move from the current 3 climate zones to 6, reflecting the differing local climates
across the country, with each zone being set new thermal performance requirements for insulation –
glass being one of them.
Currently, to comply with the building code a complete window, including the frame, must achieve a
thermal performance rating of R0.26, and this is applied to all zones.
The new building code compliance increases performance requirements in all zones, in three phases:
• From this November: All zones increasing 42% over todays thermal performance to R0.37
• And from May 2023, Zones split into 3 R value requirements, with the coldest areas requiring
R0.50 (an increase of 92% on todays thermal performance)
• and a final step in November 2023. which brings Zones 1 & 2 in line with Zones 3 & 4, at a
thermal performance of R0.46 (an increase of 77% on todays thermal performance)
The use of standard aluminium frames in most residential applications will not achieve code
compliance once the full extent of the changes is introduced, and almost universally these changes
will require all double glazing to use high-performing Low E.
To put this into perspective, our mix of Low E is currently around mid-20% nationally, and this change
should see this shift to 90-95% over the next 2 years.
We are excited and supportive of this change and were an active participant through the consultation.
Metroglass is well-positioned with world-class facilities – underpinned by our staff development,
technical expertise, furnace capital strategy and our range of high-performing LowE glass products.
I’ll touch briefly on the activity levels in the markets we operate.
In New Zealand, headline residential consents of over 50,000 reached historic levels in the 12 months
to March 2022, and well above assumed industry capacity. Recently published research by Stats NZ

7

indicated that the rate of Code of Compliance issuance (or residential dwelling completion) has
remained steady at around early to mid-30,000’s – as you can see shown by the red line in the chart
on your left. The delta between intentions to build and building activity continues to widen.
In Australia, similar affects are being observed with strong approvals growth but the rate of
completions (again in red) taking longer – the graph to your right.
In the prior 12 months, the landed weighted average cost per sqm of glass increased significantly, and
rapidly. Consistent with other industries, inflationary cost pressure has been evident across direct and
indirect costs.
In New Zealand, Metroglass has responded with a series of price increases (a cumulative 26%), with a
further price increase of 5% effective this September. These price increases are focused on improving
gross profit performance from Q2 onwards
In Australia, which is a market that has traditionally had lower market pricing for glass; AGG have
implemented cumulative price increases of 39%, in-part reflecting cost inflation pressures, but also
supported by the increasing value of high performing glass being recognised throughout the market.
I’ll next share our trading update for the first four months of FY23, being April to July 2022. All
comparisons are for the same period in FY22.
• Year to date, group revenue is similar to prior year, with the New Zealand business softer and
the Australian business above the prior year
• The Strong residential consents and approvals, are balanced by industry capacity constraints,
and should support a stable pipeline in New Zealand and Australia
• New Zealand activity continues to be impacted by ongoing market disruptions and industry-
wide material and labour shortages and this poses a risk
• Raw material and international shipping costs, while remaining historically high, have
stabilised through quarter 1. The successful introduction of price increases and improved
pricing disciplines are beginning to demonstrate positive trends for margin recovery from Q2
onwards.
• Sales in Australian Glass Group year to date are ahead of last year and are profitable,
supported by strong market activity and consistent service and operational performance
across each of the regions we operate in
• Recruitment remains challenging with a tight labour market and associated wage pressure

8

• Higher inventory costs lead to increased working capital funding requirements
Our outlook for FY23:
• New Zealand residential building consents are at record levels in the last 12 months. Capacity
constraints in the industry mean that we expect building activity to continue, but the rate of
execution due to wider industry issues are likely to be a drag
• Strong approvals activity in Australia and a similar capacity constrained industry have created
a solid pipeline of work
• Current construction sector conditions continue to drive a challenging outlook in the short to
medium term. Our focus remains on gross margin improvement, with the inflationary
pressures in our supply chain and the constraints on labour not expected to improve in the
near term
• Our strategic programme continues to unlock the potential of the business, with investments
in capability, quality, and a strong focus on improving our offering to customers. This creates
value opportunities for the business alongside building insulation regulation changes to be
introduced in our markets during FY23
• We will be focused on our cost base and be ready to adjust and respond to future demand
and activity levels
Given the levels of uncertainty that are prevalent, we will not be providing a full year guidance at this
early stage and will update shareholders further on the group’s financial performance through our
interim results announcement in November.
Finally, our focus remains firmly on being a resilient organisation that provides excellent operational
performance, maintains strong customer connections, and invests in and supports its people. I would
like to reiterate our key goals which are to:
• Build resilience and defend our leadership position in a competitive New Zealand market
• To grow profitability in Australia, benefiting from increasing demand for double glazing
• Ensure our balance sheet is robust to cope with future risks and opportunities
Before I hand back to Peter, I would like to take the opportunity to thank all our shareholders,
customers, suppliers, staff and the Board for their support over what has been a challenging year for
all.
Thank you.
/Ends