Annual Shareholders’ Meeting Presentation and Addresses

METRO PERFORMANCE GLASS
2023 Annual
Shareholders’
Meeting
1 August 2023

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
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

Key messages
•A challenging FY23 for Metroglass, with an overhang from Covid-19, as supply chains
disruption continued to affect operating and inventory efficiency. Focus remained on
supporting customers. Legacy debt remains.
•Gross margin improved through Q4 FY23 supported by increased pricing and easing
freight costs. FY23 net debt increased driven by requirements in working capital.
•Construction market softening has emerged earlier than expected. The business
completed a cost-out programme to size the business in line with changes in demand
which is expected to deliver annualised savings of $8.0 – $9.0m.
•Capital programme on LowE furnace capacity in NZ and DGU processing in AGG was well
timed to service demand from the new building code changes. The NZ market’s glass
sales mix has begun to shift to high-performing LowE, in line with H1
•Australian Glass Group (AGG) achieved a milestone year with significant improvements
in profitability supported by consistent operational stability and customer satisfaction
•A sale process for Australian Glass Group began
5

Capital structure
•It is the board’s intention to return to dividends as free cash flow becomes available
inline with Metroglass’ capital management framework.
•Metroglass remain focused on reducing the Group’s leverage to below 1.5x net debt
to EBITDA. On 31 March 2023 this was 3.2x reducing to 2.7x in June 2023.
AGG divestment update
•In February 2023 Metroglass announced its intention to divest AGG operations.
Advisors are retained and the sale process remains underway.
•A range of non-binding offers were received in June and several parties entered due
diligence; this process is expected to conclude soon.
•The board will carefully consider final offers and if thought acceptable, in achieving
the goal of significantly reducing debt, will bring the offer to shareholders for
consideration at an Extraordinary Shareholder Meeting (ESM).
6

7
Chief Executive’s address

•New Zealand is recovering its gross margin and working capital reductions as
supply chain disruptions and rising input costs abate . However, the debt
legacy from Covid remains.
•Key window manufacturer and commercial segments remained resilient,
achieving year on year improvements. The Retrofit segment receded
following consecutive years of growth.
•AGG achieved a milestone year with significant improvements in profitability
supported by consistent operational stability and customer satisfaction
•Improvements in safety leadership and performance, with the Total
Recordable Injury Frequency Rate
1
(TRIFR) reducing to 2.5 in FY23, from 5.5 in
the prior year
•Metroglass’ achieved CarbonReduce certification from Toitu Envirocare for its
first carbon profile (Base year: FY22). Group carbon emissions of 21,693
tCO2e.
The Group remains resilient and is focused
on its strategic priorities
8
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

N PAT
$1.5m
(FY22: $(0.5)m)
GROUP
1
NEW ZEALAND
2
AUSTRALIA
Revenue
$263.5m
(FY22: $236.1m)
+12%
EBIT
$11.8m
(FY22: $5.9m)
+100%
Revenue
$186.7, +5%
(FY22: $178.0m)
EBIT
$6.4m, -14%
(FY22: $7.4m)
Revenue
$76.7m, +32%
(FY22: $58.1m)
EBIT
$6.4m, +$6.7m
(FY21: $(0.3)m)
Net debt
$60.1m
(FY22: $52.3m)
Financial highlights
1
Unless otherwise stated, results are shown in NZ$mand before significant items.
2
The full segment note is available in the unaudited financial statements.
Nm = no measure
Leverage ratio
3.3x
(FY22: 3.8x)
nm+7.8m
9
nm

Trading update: April to June 2023
1
Activity remains at softer levels in the first quarter (YTD) with progress
made on debt and working capital reductions
10
•YTD Group revenue is similar to the prior year as glass
processed volumes in New Zealand business remain at a softer
level than the prior year and the Australian business continuing
its momentum above the prior year.
•Competitive dynamics remain heightened in our markets;
however, pricing is supporting margin recovering. Gross profit
improved 7% on the prior comparable period.
•Net debt reduced from $60m at31 March 2023, to
approximately $55m at30 June 2023, driven by reductions to
working capital.
1
Based on unaudited management accounts and compared to April to June 2022
2
Total m2 cut – average per day
3
compared to 31 March 2023
Key metrics
1
Glass Processed
2
NZAUGroup
Revenue
Gross profit %
Processing and overhead costs
Working capital
Net debt
3
(24%)
(9%)
7%
(8%)
(9%)
3%
20%
7%
11%
0%
-$5m (9%)

H1 transition and Metroglass’ strong proposition: Code change
11
New Zealand climate zones
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Jan
Feb
March
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Jan
Feb
March
FY23FY24
NationalZone 1-4Zone 3-4Zone 5-6
R-value requirement from consents lodged date
R0.26
R0.37
R0.46
R0.50
•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.

H1 transition and Metroglass’ strong proposition: Product suite
12
At its core, glass performance can be summarised across three
performance attributes:
•VLT (light transmission)
•SHGC (solar heat gain control)
•U-value (thermal performance)
H1 changes mean a standard LowE offer will have a U-value of 1.1
to achieve compliance NZ-wide.
Metroglass product suite features
V LT
VISIBLE LIGHT
TRANSMISSION
U-value 1.1 / 1.3
(region & frame dependent)
higher
Higher
Classic

FY23 investments in double glazing processing and Low E glass mean
we are well positioned for the residential building regulation changes
13
•Furnaces commissioned in Highbrook
and Christchurch in late 2022
debottlenecking double-glazing
processing
•Installed a series of modifications that
deliver immediate efficiency and quality
improvements
•Commissioned a second double-glazing
line in AGG Victoria
•The glass processing equipment from
Mount Maunganui utilised at AGG

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
7.9
7.5
New Zealand
8.0
8.0
8.1
7.7
7.9
7.7
7.7
8.0
8.5
Australia
14

New Zealand
•The 12-month rolling residential consents has continued to decline, and while above estimated industry
capacity, uncertainty remains on the number of dwellings ultimately constructed in FY24 and beyond.
•Activity levels in key markets are expected to remain stable at the softer levels for at least the next 4
months. Economic headwinds may accelerate a further activity decline at the end of 2023 and into 2024.
•Metroglass continues to refine plans to continue the improvement of NZ business’ profitability.
•The cost out programme will deliver operational and financial benefits through FY24.
•With reduced disruption to the international supply chain combined with the increasing demand for Low E
products, the level of financial performance in the first half of FY24 is expected to better than the pcp.
Australia
•The number of detached dwelling commencements continues to decline in all states; However the
increasing use of double-glazing in residential buildings is likely to partially offset the declines in overall
residential construction activity.
•As previously announced, For the 12 months to 31 March 2024, management forecasts are for AGG to
achieve revenue, EBITDA and EBIT of approximately AUD 79.0 million, AUD 11.5 million, AUD 7.5 million
1

respectively.
Group Guidance for the 6 months to 30 September 2023 (1H 24)
•Net Debt is expected to be in the range of $53.0 to $55.0 million
•Earnings before interest and tax (EBIT) is expected to be better than the prior comparable period of FY23.
The medium-term outlook is uncertain, but Metro has plans
in place to respond
15
1
Excluding Group management fee of NZD 0.5 million

16
General business and
shareholder questions

Resolutions
17

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.
18

Resolution 2: Graham Stuart
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 Graham Stuart retires in accordance with
this requirement and offers himself for election.
19

Resolution 3: Mark Eglinton
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 Mark Eglinton retires in accordance with
this requirement and offers himself for election.
20

Thank you.
21

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
Liam Hunt – Investor Relations
Liam.hunt@metroglass.co.nz
(+64) 022 010 4377
Contact information
22

This presentation (“Presentation”) has been prepared by Metro Performance Glass Limited (Company Number 5267882) (“Metro
Performance Glass”).
Please do not read this Presentation in isolation
This presentation contains some forward looking statements about Metro Performance Glass and the environment in which the
company operates. Forward looking statements can generally be identified by the use of forward looking words such as “anticipate”,
“expect”, “likely”, “intend”, “should”, “could”, “may”, “propose”. “will”, “believe”, “forecast”, “estimate”, “outlook”, “target”, “guidance” and
other similar expressions. Forward looking statements, opinions and estimates provided in this presentation are inherently
uncertain and are based on assumptions and estimates which are subject to certain risks, uncertainties and change without notice.
Because these statements are forward looking, Metro Performance Glass’ actual results could differ materially. Any past
performance information in this presentation should not be relied upon as (and is not) an indication of future performance.
Media releases, management commentary and analysts presentations are all available on the company’s website. Please read this
presentation in the wider context of material previously published by Metro Performance Glass.
There is no offer or investment advice in this Presentation
This presentation is not an offer of securities, or a proposal or invitation to make any such offer. It is not investment advice or a
securities recommendation, and does not take into account any person’s individual circumstances or objectives. Every investor
should make an independent assessment of Metro Performance Glass on the basis of independent expert financial advice.
All information in this presentation is current at the date of this presentation, and all currency amounts are in NZ dollars,unless
otherwise stated. Metro Performance Glass is under no obligation to, and does not undertake to, update the information in this
Presentation, including any assumptions.
Disclaimer
To the maximum extent permitted by law, Metro Performance Glass and its affiliates and related bodies corporate, officers,
employees, agents and advisors make no representation or warranty (express or implied) as to the currency, accuracy, reliability or
completeness of the information in this presentation and disclaim all liability for the information (whether in tort (including
negligence) or otherwise) to you or any other person in relation to this presentation, including any error in it.
Disclaimer
23

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1

NZX.MPG, ASX.MPP

Metro Performance Glass Limited
Annual Shareholders’ Meeting, 1 August 2023


Chair’s address
Good morning ladies and gentlemen. My name is Peter Griffiths, I am the Chair of Metro Performance Glass
Limited and will be chairing today’s meeting.
The financial year 2023 was another challenging year for Metroglass. The hangover from Covid remained
with us.
International supply chains continued to be disrupted and raw material freight costs remained high. We
increased the levels of stock to ensure service to customers, as a result working capital increased, leading to
higher debt.
We introduced a series of initiatives through the year to free up cash, improve price and reduce cost.
Consequently, gross profit improved in latter months of FY23 as prices increases were embedded and high
costs for international freight eased.
The business’ cost out programme resulted in annualised savings of $8.0 to $9.0 million. On going cost
reductions as demand softens will continue.
Through the second half of FY23 the New Zealand construction market started to soften, and this has
continued through into the current year. The m2 of glass processed in first quarter of FY24 is 24% lower than
the first quarter of FY23.
It is clear that we in a period of reduced activity. The board and management team continue to consider a
range of scenarios and have further initiatives to reduce costs should demand soften further.
As in previous years our capital programme remained focussed on increasing capacity and capability for
processing higher performing LowE glass in New Zealand and increasing double-glazing processing capacity
in AGG. This programme has enabled the company to service changing product demand from the new
building code changes in each country.
AGG achieved a year with significant improvements in profitability supported by high levels of operational
stability and customer satisfaction.

2

It remains the board’s intention once debt is significantly reduced to resume dividends inline with the
Metroglass capital management framework.
The board remains focussed on achieving the best value for all shareholders and ensuring that the company
is a successful and enduring glass processor and is open minded to all options.
As we have consistently communicated, we continue to be focused on reducing the Groups debt leverage to
below 1.5 times net debt to EBITDA. We had previously good progress, however the impact of the pandemic
has negatively affected earnings and margins. A period of softer market activity creates a further challenge.
It is the boards’ view that cash flows from operations alone particularly in a downturn cannot reduce debt
rapidly enough and other alternatives need to be considered.
In February, we announced the start of an asset sale process for our AGG operation.
A range of offers were received, and several parties entered due diligence which is expected to conclude
shortly. The board will carefully consider final offers, and if thought the best option in achieving the goal of
significantly reducing debt, will bring the offer to shareholders for consideration at an extraordinary meeting.
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.

Chief 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, their resilience has ensured that
we have continued to deliver our market leading products and services to our customers.
Our teams have managed the ongoing supply chain disruption well and as shipping became more reliable
and predictable, it has allowed us to begin reducing safety stock levels and in turn, working capital. We have
also seen marked improvements in gross margin as price increases embed, our sales mix shifts to higher value
Low E, and freight costs ease.

3

During the year, all of our segments were impacted by disruptions to supply chains and corresponding project
delays that impacted our efficiency. In spite of this, all segments remained resilient and performed well.
Metroglass remains the leading glass processor and installer in New Zealand.
Australian Glass Group delivered on their turnaround plan, with stable operational performance and
delivered a significantly improved EBIT result.
AGG is well positioned for continued growth alongside the increasing adoption of double glazing as changes
to National Construction Code further accelerate its uptake.
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
Total Recordable Injury Rate (TRIFR) more than halved to 2.5 in FY23 from 5.5 in the prior year.
This year we sought to understand our carbon emissions profile and have recently achieved external
assurance from Toitu Envirocare for our FY22 base year. This is a good starting point for the company to
develop our longer-term carbon reduction programme.
I’ll now provide you with a brief summary of the group’s financial performance in the financial year ended
31st March 2023:
Group EBIT of $11.8 million was an increase of 100% on the prior comparable period, driven by a full trading
period without a lockdown and significant price increases in both New Zealand and Australia.
Net debt increased to $60.1m, driven primarily by higher volume of inventory which was also at higher unit
cost. Our leverage ratio reduced to 3.2x on 31 March 2023, from 3.8x on 31 March 2022.
AGG had a much improved result after a number of very difficult years. Revenue lifted 32% primarily through
improved pricing and stable operations and we delivered an EBIT result of $6.4m.
I’ll now touch on how we are traveling year to date:
For Q1 Group revenue is similar to the prior year despite the amount of glass processed in m2 being materially
lower than the same period last year.
Revenue in NZ is 9% lower but improved pricing and mix is helping offset the volume reductions from a softer
New Zealand market.
Gross Profit Percentage has improved 7% on prior comparable period in NZ
AGG continues its momentum seen through FY23 into Q1 FY24, with glass processed, revenue, gross profit
and EBIT all above the same period last year.

4

Net debt has reduced from $60m at 31 March 2023, to approximately $55m at 30 June 2023, primarily driven
by reductions to working capital. Our CAPEX is currently at same level as this time last year and we expect
our full year capex to be similar to last year at approximately $7m
I’d like now to take a moment to outline the supportive regulatory changes occurring in New Zealand.
In New Zealand, MBIE introduced changes to the minimum thermal performance requirements for
compliance with the building code H1 Energy Efficiency. This is the first major change to the code since the
introduction of Double Glazing in 2007/08.
New Zealand has moved from 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.
The new building code requirements see an increase in thermal efficiency across all zones, in three phases:
From November 2022: All zones to move to an R0.37 from R0.26, then from May 2023, this splits into 3
increased R value requirements, with the coldest areas requiring R0.50 and a final step in November 2023.
which brings zone 1 & 2 in line with 3 & 4, at a thermal performance of R0.46
The use of standard aluminium frames in most applications will not be compliant once the full extent of
changes is introduced, and almost universally these changes will require all glass to be a high-performing Low
E.
We have been talking about these changes for some time and the positive impact we believe this will have
on our business. In the last few months, as these new code requirements comer into force our mix of Low E
in residential doubler glazing has moved from around 24% Q1 last year to 40% in Q1 this year. Over the next
12 months we expect this to reach 90% plus. Importantly, not only are we seeing a shift from non-LowE glass
to LowE glass, but customers are also seeking to move from within the LowE range, towards the high-
performing LowE’s.
Metroglass has a long history of supplying high performing soft coat LowE products and we believe we have
a leading LowE product offering.
Glass performance, excluding mechanical/structural attributes can be summarised across three performance
attributes.
The changes in H1 Energy Efficiency requirements means that thermal performance is somewhat of a product
hygiene factor in that all glass suppliers must now meet this minimum thermal efficiency requirement.
For example, some of our double glazing range will no longer be appropriate like Classic or clear float double
glazing. LowE Plus will also phase out and LowE Max will have limited residential application.

5

However, we firmly believe we will see a significant shift in attention of the other glass performance
attributes by designers and specifiers.
Visual Light Transmission – how much natural light comes in,
Solar Heat Gain – how much heat from the sun comes into the house. This is of particular interest in warmer
climate zones.
Earlier this year we brought to market our SunX Grey offering. As you can see from the graphic, it provides
strong performance across all the attributes I’ve just outlined. We are excited to bring this product to market.
Metroglass is well–positioned with world-class facilities. We have been making targeted investments in
anticipation of the increasing requirements for processing high performing Softcoat LowE glass.
In the year we installed a new furnace at Highbrook and upgraded and relocated a furnace to Christchurch,
along with a series of other modifications to our processing lines creating immediate benefits to efficiency,
quality and debottlenecking these two plants.
In Australia we commissioned a second double-glazing line in Victoria to service a growing demand in that
region.
A significant amount of the glass processing equipment from Mount Maunganui is being relocated and will
be utilised across the AGG business.
In May 2023 we conducted the ninth 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.
Our ratings in New Zealand while they remain strong, declined in the May survey. We were encouraged by
the high survey response rate which climbed to 72%. Often these surveys are reflective of the current
situation when the survey is conducted. In and around May we did have some supply disruptions in our plants
which impacted some of our customers. We have addressed many of those challenges already. We continue
to work with our customers to understand their feedback and work with them to develop solutions to
improve our service levels.
In Australia, AGG achieved their highest ever rating as customers continued to complement our people, our
communication and customer service, and overall responsiveness to their needs.
Our outlook for remainder of FY24:
New Zealand
The 12-month rolling residential consents has continued to decline, and while above estimated industry
capacity, uncertainty remains on the number of dwellings ultimately constructed in FY24 and beyond.

6

Activity levels in key markets are expected to remain stable at the softer levels for atleast the next 4 months.
Economic headwinds may accelerate a further activity decline at the end of 2023 and into 2024.
Metroglass continues to refine plans to continue the improvement of NZ business’ profitability.
The cost out programme will deliver operational and financial benefits through FY24.
With reduced disruption to the international supply chain combined with the increasing demand for Low E
products, the level of financial performance in the first half of FY24 is expected to better than the pcp.
Australia
The number of detached dwelling commencements continues to decline in all states; However the increasing
use of double-glazing in residential buildings is likely to partially offset the declines in overall residential
construction activity.
As previously announced, For the 12 months to 31 March 2024, management forecasts are for AGG to
achieve revenue, EBITDA and EBIT of approximately AUD 79.0 million, AUD 11.5 million, AUD 7.5 million1
respectively.
Group
Net Debt is expected to be in the range of $53.0 to $55.0 million
Earnings before interest and tax (EBIT) is expected to be better than the prior comparable period of FY23.
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