AGM 2021

Aug 5, 2021

Slides

Meeting. So on behalf of the Board, the management and the staff of Metro Glass, I'm very pleased to welcome you to the 2021 Annual Meeting. This year is our 1st year of a hybrid meeting. So as well as the shareholders that are here in the room, we have a number of people connecting online and they are coming to us virtually. It's a real pleasure to actually welcome people face to face because if you think about where we were a year ago, being able to hold a face to face meeting is now something a little more special than we thought it was in the past. For those of you in the room, just a couple of housekeeping points. In the case of an emergency, we need to evacuate the room. There are 2 fire exits. I'm pointing to them now. The assembly area is at the front there on the grass or you may get taken down into the grass in front of the other stand. If we do need to evacuate, staff from the event center will be around to help us leave the building. So please follow their direction. If you need the bathrooms at all, they're out to my left up the stairs, they're on the right hand side of the corridor. For those attendees online, welcome to you. Just as with our physical shareholders in the room, you will be able to vote and you will be able to ask questions. I'll provide you with instructions as we go through the meeting to make sure your questions and votes get through. But if you do encounter any issues with the connectivity, use the online portal guide or if that's no help to you, please ring the 800 number, which is 800-200-200-220. So that's 800-200-220. If you do have a question, I'd encourage you to send that through as soon as you can. This will give us some time to correlate them and we'll try and answer as many as we can. If we're unable to get through those questions during the meeting, though I expect we will, But if we don't or any of them require a more detailed response, our Investor Relations team will come back to you via your registered e mail address and we'll also put the responses on our website for everybody to see. Of course, for those in the room, we'll invite you to ask questions after the presentations and at each resolution as we go through. And so to the agenda for today, I'd like to introduce my fellow Board members to you again. I'll make a few remarks. I'll then hand over to Simon, who will talk in more detail about the performance of the company and what's going on at the moment. We'll then come to the 3 formal resolutions sorry, we'll take questions after Simon's presentation. We'll then come to the 3 formal resolutions and we'll take questions for each of those. And after the meeting, for those of you in the room, you're very welcome to join us for a morning tea and a discussion. So I would just note that my fellow directors and I hold a number of discretionary proxy votes. We intend to vote those all in favor of the resolutions as sent out in the notice of meeting. We've also received advanced postal votes, some 54,000,000 shares have already voted, about 29% of the issued capital of the company. And we will put some of the information up on a slide later in the session. The company's financial statements for the 12 months to the 31st March 2021 together with our auditors report as we set out in our annual report and that was released on the 21st May. This is available on our website and we also have a few hard copies here today if you would like one. So, I would now like to introduce you to my colleagues on the Board. They're all sitting here to my left. We have Angela Bull, Mark Eglinton, Rhys Jones and Graeme Stewart. You can find some details of each of the directors' backgrounds and experience in the front of the annual report I just mentioned and also on the company's website. As we announced in May, our 6th and Australian based Director, Russell Chanu, who joined the Board before the company listed in 2014, retired in advance of this meeting. And on behalf of the Board, I'd like to thank Russell for his service, his support and dedication to Metro Glass over that extended period. We're now in the process of looking for an additional director and that process is now underway and we'll make an announcement in due course when we've concluded that process. We also have our Chief Executive, Simon Mander and here with us and he's joined by our Chief Financial Officer, Brent Mealing and we have our company secretary, Andrew Patterson with us this morning. We also have a number of senior managers at Metro Glass. They're all wearing a name badge and I encourage you to talk to them after the meeting over a cup of coffee. In addition to that, we have Troy Florence who is from our auditors PwC, he is our audit partner and we also have Toby Sharp from Belle Gully legal advisors here in the room this morning. So welcome to both of you guys. I can confirm the notice meeting was sent out to shareholders and that we have a quorum here today and therefore I declare the meeting open. I'd like to start my remarks by just acknowledging a few things, which I'm sure many of them are very, very obvious to everyone. But financial year 2021 was a very challenging year for Metro Glass, for all businesses in New Zealand and Australia and indeed globally. Metro Glass displayed some real resilience in the face of these significant pressures and the uncertainties caused by the COVID-nineteen pandemic. If you recall, we began the FY 'twenty one financial year in alert level 4 in New Zealand. And that means our operations in the country were all completely closed down. And they stayed that way until late April when we moved into level 3. Our Australian operations were also affected by restrictions. And while these at the time were less severe than the ones in New Zealand, they were in place for considerably longer and they continue to have an impact on us today. I'm sure you're all familiar with the news last night of a further shutdown in Victoria. So our whole team responded very quickly to the announcements of lockdown. We focused on the safety and the well-being of our people, on the well-being and satisfaction of our customers, on preserving our cash and ensuring that our balance sheet had enough liquidity in it to cope with what we thought was going to be a very, very challenging time for the company, if you think back to April last year. And while in New Zealand today, we're really fortunate to be operating in something like relative normality, the very quickly developing situation in Australia just highlights how we must remain alert to sudden changes in alerts levels. And this is something that we focus on every day. As a consequence of the pandemic, there have been widespread disruptions to international shipping. Again, I imagine many people heard about that to congestion at New Zealand ports and this has impacted all importers and exporters from New Zealand, including ourselves. We recognized this early and since late last year, we've been working to increase our safety stocks of materials in the country and to best utilize our natural national, sorry, processing and distribution footprint to limit the impact on our customers. And we've been quite successful in doing that. And while the scale of these disruptions has provided some real short term challenges to us and some real financial impacts, We have managed quite well and we think our customers have not felt extreme disruption because of this. These challenges have brought associated increases in costs and where appropriate we have put in place price rises in New Zealand and Australia to cover those. Glass demand, despite all of this, glass demand remains strong in both countries, but the competitive challenges of satisfying our customers are complicated by these ongoing challenges of the supply chain and the pandemic. And we expect this to be the environment we face for some considerable time going forward. When I reflect on the FY 2021 financial results and while group profitability did decline, I believe the group's performance can be considered as solid given the circumstances we were facing. This was achieved through the resilience of the people, staying connected to customers and remaining focus on customer service and quality. The New Zealand market remains competitive and the commissioning of additional processing capacity by a competitor in the North Island early last year means that the total national processing capacity in New Zealand remains well above demand even at these heightened levels. Our customers do have a choice as to who they partner with and we want to ensure that choosing Metro Glass is one of the easiest decisions they have to make. So our strategy to defend our market share or defend our market leader in position while we recalibrate our sales mix in this competitive landscape is already delivering encouraging results. We've had strong growth in our B2C segment, in our retrofit channel and in other segments that have helped offset the competitive nature or the competition for share in the residential window segment. Again, we expect this competitive dynamic to continue into the future. To thrive in this sort of environment, we must focus on providing a compelling and differentiated value proposition. We must maintain strong relationships across our customer base and ensure that we are providing a broad range of high quality products that are delivered consistently and installed according to specification everywhere in New Zealand every day. That's our goal. Simon will share a little more about this during his presentation to you. Now as I mentioned, the demand for glass is strong and across all our market segments and consenting activity grew through financial year 2021 and reached all time highs earlier this year. And we believe that this will lead to a continued lead to continued strength in the residential construction market in New Zealand for some time to come, certainly the rest of this year and into next year. In Australia, we are a focused double glazing manufacturer. The market is fragmented and competitive. And in that situation, global Australian Glass Group has continued to strengthen its value proposition and we've delivered a significantly improved result in the financial year we're discussing today. Now after achieving a positive earnings before tax situation in the first half of last year, the AGG operations were negatively impacted late in the year by further COVID shutdowns as we just talked about. And there was also a severe weather event in New South Wales, which was a large flood. You might remember it, disrupted distribution in the state quite considerably. And both of those events meant that we resulted in producing modest loss in Australia instead of the breakeven slight positive result we were hoping for. However, the growing use of double glazing in the Southeast of Australia, the upcoming changes to the national construction codes and continue to underpin our revenue growth. In FY 2021, AGG grew its double glazing sales in Australia by 9% and this momentum is continuing into the financial year into this financial year. We sort of now believe that the business there is on a solid footing. It's got a positive long term outlook. And while COVID risks are absolutely evident in Australia, we are excited and interested by the growth opportunities we have ahead of us in Australia. If I just turn to our balance sheet for a moment. Despite COVID and the disruptions I mentioned, we generated a strong cash flow from operations. We had to focus our capital expenditure. We had to manage costs very prudently. But by doing that, we were able to strengthen the balance sheet by reducing debt by $18,900,000 leaving us with a net debt at the end of the financial year of $48,000,000 In October last year, the group refinanced its banking facilities. We extended our term from August 21 out to October 23 and the total facility was reduced from the $120,000,000 we had down to 85,000,000 dollars And that included a $10,000,000 standby facility that we never actually drew upon and that will wind off in October. And this process of debt reduction over the last 2 to 3 years has allowed us to set a new lower debt facility, which strikes the appropriate balance between minimizing our funding costs, but also providing us with financial flexibility if we need it, but at a much lower level than we had historically. The Board remains focused on ensuring that the company is a successful glass processor and that it delivers value. And while the current challenges in our marketplace and the pandemic response must dominate our attention, we now think we're in a position to seriously consider the future of the business. What should come next for Metro Glass? How do we take advantage of our growth opportunities in Australia? How will the overcapacity issues in New Zealand be resolved? And how do we ensure that this company, our company comes through this period in a market leadership position with a sustained financial performance. So in service of this, our goals are to maintain our leadership position in New Zealand by refining our mix of products and participation in segments to take advantage of the opportunities that we see in the increasingly competitive market in New Zealand and in Australia to grow and improve the profitability of our Australian business and benefit from the significantly increasing demand for double glazing in the markets we participate in. And all the while ensuring that our balance sheet is there to cope with any surprises that the markets throw at us, but also to give us some capacity to deal with to take advantage of those opportunities should they come our way. We've consistently communicated to you that reducing our leverage ratio, our debt to profit ratio has been a big focus of ours over the past 2 years. We've been aiming to get to a target of 1.5 times. That's the ratio we've been looking for. And despite the disruptions of COVID, the success in reducing our debt means we are going to achieve that target sometime this year. Once we do that, it's the board's intention to resume dividend payments and our intention is to declare a dividend alongside the FY 'twenty two half year results, which we'll announce in November this year. Just in accordance with our policy, we expect to pay a fully imputed dividend of between 50% 70% of our net profit after tax in broad terms. Earlier this year, the Board provided an update on our approach to managing the capital of the business and we've adopted what I would call a more balanced stance as we've reached this debt target ratio. So looking forward, we will have more capital available to spend in the business to improve efficiency and effectiveness and we will make unit capacity investments within our existing factory footprint, both in New Zealand and Australia. The timing of these capital investments is now dictated by our ability to source, import and install this equipment such that it doesn't impact on our production capability and essentially is affected by the marketing, the national distribution importing disruptions that I mentioned earlier. So in addition to our capital spend and funding the dividend I just mentioned, we will have further funds to continue to reduce debt and we expect to continue to do this gradually in the coming years and we will aim to get to the bottom of our target range of 1.5 or 1 to 2 times debt leverage in the medium term. So to summarize, the threat of COVID and its complications are going to be with us for a long time. We're likely to see ongoing disruptions to the supply chain both locally and globally. We'll see shuts in Australia as we are. We've experienced them in New Zealand as well. We expect to see that again. We'll continue to monitor that. And I think we've shown that we have a proven ability to respond quite quickly to these things and keep the business operating to some extent, if not at 100%. It's the Board's view that the current positive market conditions are going to persist in both countries and we will seek to take advantage of those opportunities to grow in Australia and maintain our position in New Zealand. So I'd like to close by just thanking my colleagues on the Board, the employees of the company, our loyal customers, our hardworking suppliers and of course our shareholders for their continued commitment and support to the company through what's been an incredibly challenging year. I'll thank you now and I'll now ask Simon to come and make his remarks and after that we'll take questions. Thank you very much for your attention. Thanks, Peter. Good morning, everyone, and thank you for joining us today in Auckland, both in person and online. Throughout the financial year 2021, our operations in both countries were regularly impacted by fluctuating COVID-nineteen restrictions and international supply chain disruptions. Supply chain disruptions are continuing and as I'm sure you're aware, COVID-nineteen is still impacting Sydney and Melbourne. I'm immensely proud of our teams who continue to be resilient and adaptable to manage these disruptions, which have impacted both New Zealand and Australia. Importantly, under all circumstances, we've maintained a strong connection and service level to our customers. Today, all 6 of our glass processing plants across our network in New Zealand and Australia are open and operational with our Sydney plant operating on a restricted basis under a strict set of safety protocols. We're continuing to support our customers in New South Wales supplementing supply from our Melbourne plant. As Peter noted, we've fully closed our New Zealand based operations from late March to the end of April 2020. Pleasingly, from June 2020 onwards, activity in our retrofit and commercial glazing segments was strong. Our retrofit business grew 16% this year despite the lock down with significant increases in inquiry levels and record growth in our forward book. This helped to partially offset the Alert Level 4 lockdown and heightened competition in the residential segment. The Australian business turnaround progressed well with stable operational performance and significantly improved EBIT. The business delivered a revenue growth of 1% year on year despite the impacts of COVID-nineteen and has offset the exiting of the non DGU market in New South Wales. AGG achieved positive results for the 1st 3 quarters of the financial year. However, Victoria's snap lockdown in February and significant flooding in New South Wales in March negatively impacted momentum in the second half. Throughout though out of our control, Australian team and I were disappointed by how the year ended given the progress the business has made. As a group, we maintain remain firmly focused on our customers and our people, making good progress with both. I'm particularly proud of progress made on our multiyear safety and well-being strategy, making steady progress through the year implementing standards for controlling hazards effectively and improving early intervention processes. Our apprentice scheme is another highlight. We now have more than 80 apprentices enrolled with 15 qualifying during the year. Over the last year, Metro Grealis has received recognition in a number of awards and I'd like to share some of them with you today. As part of the Skills Highway Champion Awards 2020, Metro Glass achieved a highly commended for our Brighter Minds program that aims to support emerging leaders to develop knowledge and skills while working towards the New Zealand certificate in business. During the year, we had 55 employees graduate from the program. We won the Best Financial Innovation Project Award at the 2021 CFO Awards for the implementation of our new ERP system which went live in November 2020. And in the recent Windows and Glass Association of New Zealand Awards, we won the sustainability award for the Tooranger Library in Christchurch, which featured our high performance low E double blazing structurally glazed by a Metro Glass Christchurch team. And additionally, Metro Glass products were used by the winning entries in all three of the residential project categories. I'll now provide you with a brief summary of the group's financial performance in the 2021 financial year. The group achieved a solid set of results for the year despite operating in an increasingly competitive market, while facing regular externally driven disruptions, which impacted on our ability to build sustained momentum. New Zealand revenue of $179,800,000 was down 12% versus the prior year given the COVID-nineteen shutdown period with an EBIT before significant items of $19,400,000 down 27%. Australian Glass Group's revenue grew by 1% to $52,500,000 with strong performance from all states and rebuilding the revenue to offset the exit of non double glazing product sales in New South Wales. At an EBIT level, AGG were on track to deliver a modest profit for the year after a positive EBIT result for the first half. However, the COVID-nineteen lockdown in Victoria and flooding in New South Wales had negative impacts late in the year. As a result, AGG delivered an EBIT loss of $700,000 in FY 2021, which while disappointing was a significant improvement from a loss of $3,600,000 for the prior year. Group EBITDA of $17,900,000 includes the New Zealand and Australian segmental results as well as group costs of $300,000 This result was at the top end of our guidance of $16,500,000 to $18,000,000 which we provided in February. We continue to strengthen our balance sheet with net debt declining by $18,900,000 year on year to $48,000,000 This was supported by strong operating cash generation, the sale and leaseback of 2 thirds of our vehicle fleet and a reduction in capital expenditure. In May 21, we conducted the 5th of our 6 monthly customer surveys. These surveys provide us with vital feedback on our offering and our relationship with our customers and importantly on how we can improve. Overall, our ratings in New Zealand and Australia were largely consistent with previous surveys. It has been great to see the New Zealand business achieve its highest results in the last two surveys. Pleasingly, our Australian results also remained strong despite prolonged operating challenges due to COVID-nineteen throughout the year. To the right of the slide, you will see the word chart which reflects the types of feedback we received in New Zealand. The size of the word reflects the frequency of use and customers' responses green positively and red negatively. Basically, the larger the word, the more it is used. In our most recent survey, for every negative comment, there were multiple positive comments. Our customers are complementary of our people, relationships, customer service, account management and project management. However, inconsistencies in service performance predominantly around lead times in some regions were also raised. We were aware of these issues as we experienced some equipment reliability challenges around the time of the survey. As with each of these surveys, we continue to work with our customers to address specific issues and general service levels and to develop ways to improve and generate value for our customers. I'd like now to update you on the 1st 4 months of trading in the 2022 financial year being April to July 2021. While group revenue is significantly ahead of last year, any comparisons to Q1 FY 2021 has little relevance given the alert level for shutdown period in New Zealand last year. The continued strength in residential consents in New Zealand and approvals in Australia are supporting a robust and stable level of construction activity. In New Zealand, Metro Glass' market share in the residential window segment has now stabilized following the entry and subsequent growth of a new competitor over the course of FY 2021. We expect the annualized impact to increase progressively through FY 2022. Despite the changing industry dynamics, Metro Glass remains the clear New Zealand market leader and has started this year well. We are continuing to reposition our sales mix where we see opportunities, winning new customers and further strengthen the retrofit segment. Sales in Australia in the April to July period were ahead of last year, buoyed by strong market activity across each of our key regions. However, from the middle of July, AGG has been operating under escalating COVID-nineteen restrictions in New South Wales in particular. And as I've mentioned, Victoria and Tasmania are fully operational. And while our Sydney plant is operating on a restricted basis and is under a strict set of safety protocols. As we talked about year to date revenue was higher in New Zealand given the COVID-nineteen shutdown early in FY 2021. However, these revenue gains have been offset to an extent by significant and widespread international shipping disruptions that have led to increased raw material and shipping costs. The non recurring nature of last year's government wage subsidy also has an impact. Where appropriate, we've introduced price increases in both New Zealand and Australia, which will partially offset these increased costs. We've remained focused on limiting the supply impact on our customers. And as part of this, we've been working hard to increase our safety stocks and to best utilize our national processing and distribution footprint. We believe that AGG is now on a solid footing and demonstrating sustained operational and financial performance. To support this next stage of AGG's growth, 2nd shifts are being progressively introduced in both New South Wales and Tasmanian factories. While this process creates some inefficiencies and increased labor costs in the short term as the new staff are recruited and trained. Ultimately, this will enable AGG to grow with the market, which will be benefiting from the changes to the national construction code anticipated in 2022 to supply and capacity pressures in both New Zealand and Australian industries. Recruitment is becoming a real challenge and while wage inflation is being managed. Our outlook for FY 2022 is largely unchanged from our update in May. We believe activity levels across both New Zealand and Australia will likely be sustained at current levels for the rest of the 2021 calendar year and well into 2022. The continued strength in residential building consents provides a positive signal of a strong pipeline of activity. Though in New Zealand, industry capacities constraints will continue to dampen any rapid growth in the near term. The residential segment in New Zealand will continue to be competitive and dynamic, but we expect the customer churn being seen across the market to settle over the remainder of FY 2022. In Australia, we are confident that AGG has embedded the improvements achieved in FY 2021. The level of residential approvals in Australia improved significantly through FY 2021, which will provide some support through the 2022 financial year. The group remains alert to COVID-nineteen risks and the significant disruptions in international shipping, both are likely to continue for the foreseeable future. The group intends to invest more capital expenditure in FY 2022 versus 2021 aimed at efficiency and unit capacity and we continue to take a prudent approach to managing operating costs. We will update shareholders further on the group's financial performance through our interim results announcement in November. Finally, our focus remains firmly on building a resilient organization that provides excellent operational performance, maintain strong customer connections and invests in and supports its people. And I'd like to reiterate our key goals, which are to defend our leadership position and refine our sales mix to take advantage of opportunities in an increasingly competitive New Zealand market, to grow and improve the profitability of our Australian business and benefit from the increasing demand for double glazing there and ensure our balance sheet remains strong and sufficient to cope with future risks and opportunities. Now before I hand back to Peter, I'd 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 everyone. Thank you. Okay, ladies and gentlemen. This is the first opportunity to ask questions. Before I throw it open to the room, I'll just deal with a couple of questions we've already received. We received 2 questions in writing before the meeting and we've received a couple online already. I'll deal with the 2 written ones here and then I'm going to hand over to our Chief Financial Officer to answer the 2 that have come in while we've been holding the meeting. So question 1 was, what is the annual cost of being listed on the ASX, the Australian Stock Exchange? And given the small volumes of our shares that have traded there, are there any plans to delist from the ASX? And in reply to that, we would say, look, our costs of listing on the ASX are relatively low. Our annual listing fee and the related costs are approximately $30,000 a year. And as Metro is a foreign exempt issuer, our listing costs are likely to remain at that sort of level. Essentially, we have to just comply with the New Zealand Stock Exchange rules in order to comply with the Australian ones. We've considered our position of staying listed there over time from time to time. But given our low costs and our plan to grow our activities in Australia, we still think it's worthwhile staying listed and so we have no plans to delist at the moment. The second question was, what financial effects in the 2021 year did the lockdowns in Australia and the flooding event in New South Wales have on the financial year? Now Simon mentioned in his address that we made approximately a $700,000 loss in Australia. And essentially that all of that or most of that can be attributed to those lockdown events in Victoria and the flooding in New South Wales late in the year. So that's a good approximation of the impact on our bottom line. We have had 2 questions online while the meeting has been going. So I'll hand over to Andrew and then so you hear a different voice, Brent will answer them. Sure. So the first question from online was in prior AGMs, you provided an update on net debt. Can you advise the value of net debt at June 21 or July 21? Yes, I remember we did disclose it this time last year. We I mean the reality is we're about the same. And the reason for that is that as Peter and both Simon mentioned, we've been investing in capital in the 1st months of this financial year as well as increasing our stock holdings of glass given the disruptions of the import issues that we're experiencing. And there's one more. Several more. Okay. So the next question is, given 20 21's Q1 revenue is not a good comparison for New Zealand's 2022 Q1 revenue, how did that revenue compare to 20 20's Q1 revenue? So if I maybe just talk quickly to each of our key markets. So Australia first. So Australia, we are definitely seeing this continued increase in revenue in Australia relative to 2020, even though we had, if you remember, quite a significant transformation in our New South Wales business in particular. So that revenue is on a good trajectory. In New Zealand, relative to 2020, the entry of competition, particularly in the window segment area of our business will mean that we will be below on a comparative basis at a revenue level between Q1 2022 and Q1 2020. The next question, obviously, okay. Were the price increases prepared to restore the New Zealand margin levels to those achieved in 2020 given the margins fell in 2021? And with the large cost pressures outlined, were the price increases early enough to recover all these cost pressures in the current financial year? Keep going. So we did move prices in New Zealand and Australia. We moved our prices in New Zealand market in July and we've done that in August in Australia. Reality, I guess, for us in New Zealand is that we are in a very competitive market and we are like all of our other competitors and other businesses in New Zealand under the same cost inflationary pressures as everybody has. So we're intending to continue to evaluate our position as we go forward. Next question. The 2021 results showed EBITDA of $38,000,000 and a 1.5 times multiple. That gives scope for net debt to be $57,000,000 in dividends paid. Net debt was $48,000,000 dollars Could a dividend have been paid in March 2021 and still meet the 1.5 net debt target, whether other factors in the decision not to pay a dividend? Andrew, do you want to actually answer that one? You know the answer to that? Sure. Yes, I guess at year end, thanks Daniel for the question. Our net debt to EBITDA ratio was 1.7 times. And so wasn't quite at our 1.5 times target and the issues we faced right at the end of the year in Australia were one of the reasons that we didn't quite get there. We also had, I guess, some agreements with our banks as part of the refinancing process that had some restrictions around kind of when and what dividends we paid. And so that was one of the considerations, but obviously the Board have other considerations. And so the decision was not to pay a dividend that March, but obviously we've guided that we intend to do that alongside our interim results in November. I think we will add Sorry, I was just going to mention just a technical point. We report on a post IFRS 2019 basis, which is the lease accounting change that happened last financial year and we test our covenant ratio on the pre IFRS EBITDA number. So you would on the face of the P and L, you would come up with 1.5, but if you did do it on a post sorry, pre IFRS 2019 basis, you would come up with 1.7, which is what Andrew just mentioned. Any further questions? Yes. Okay. Sorry. And thanks for the questions. So the next question We'll give you a go shortly, I'm sorry. What are the levels of glass wastage in production? Yes, so that on this is a question on that glass wastage and production. So that's it's very variable depending on the product mix. We have been doing our benchmarking against companies overseas. And where we sit there is sort of in the middle of similar businesses with the same type of mix as us. The big part of the glass over so of wastage of glasses as we cut. So that's the yield of the raw sheet. So that again, we benchmark ourselves against internationally there and we're sort of sitting at a similar sort of level in that 15% to 20%, depending on the mix of that yield of the cuts of the raw sheet. All of that I've seen some commentary somewhere people thinking that waste glass goes to the landfill. I can assure you that it doesn't. Any waste glass from all of our factories is recycled. And so we none of our glass goes into landfill. Thanks. One final question I have at the moment from Ben Renshaw. Thanks for the question. Will share repurchases play a role in your capital allocation process? Share buybacks are definitely one of the tools that a board has when it has decisions to make around capital reallocation. We have thought about this over time, but at the moment, it is not part of our thinking. We've announced the dividend. We want to continue to reduce debt and we think and then spend capital in the business. So we don't have a plan to go into a share buyback program. If we ever did, would be very well signaled and well bounded. So at this stage, we do not have that plan. Okay. I think we'll That's everything online. Thanks. I was slightly caught off guard by the number of questions that came through online. So let's take an opportunity to take any questions from the people in the room. If you just put your hand up, Mike at the back there, I think, has got a microphone. There's one down here, Mike, if you come down to the front. If you could just say your name so that we get it onto the record because everything is being recorded and we just like to know who asked what. So sir? Hi, my name is Kaushik Patel. I'm the shareholder. There has been a comprehensive explanation to a lot of things. I had a few questions over here. I think you might have answered a few, but it's a cause of concern when probably you said that the debt level from the last year's accounts to the current, which is 4 months on, are at the same level. Am I right? Yes, yes. Similar level. So the question over here is, you are mentioning about getting the debt ratio prior to paying dividends, all right. At the same time, you have a commentary over here which says that by end of 6 months result, we'll be probably paying dividends. This is what this intention is. Now again, I want to know whether the business is still in the clutches of the bankers because you did mention that the banks had put the restrictions. So I am highly concerned whether the board is understanding the business aspect of it in this low interest regime, if you have done well and if you have come out of the ratios, which are desirable, then probably the bank should be on the line as well in terms of talking to them and saying that, oh, no, wait a minute, you're partners in business, you can't dictate stuff because shareholders, we have heard a lot of terms like long term, long term, long term. I think 3, 4 years, you have been enough. COVID, I can understand. But there are a lot of areas where today the answers which have a go as well. I can assure you we are heading towards dividend payment in the half year. The any restrictions or covenants that our banks put on over and above the normal tests that you would imagine in a debt facility have largely wound off. So we are not we don't need their permission to do anything from now on. Our increased debt position at the moment is a momentary thing, largely because we've decided to bring forward a little bit of capital spend. We've had to make some deposits on some large pieces of equipment. We would have been making that in a few months' time anyway, but we're mindful of the fact that it's taking a lot, lot longer to get things here to fit in with our installation window. So we've made that choice. So that's gone up a little bit. Similarly, we've increased our safety stocks because of the disruption to glass supply and that's had a momentary blip as well. But I can assure you, sir, that we are our banks are on board. They're not being unreasonable. If you think back to when we were renegotiating this, the world was a much, much more uncertain place back then. And people wanted to make reasonable requests of companies as they as you refinance. And we the team negotiated quite well on that. So, yes, we'll hold those for a short period, but then they come off and we go back to normal. And that's where we are now. So you should rest comfortably that our intention is to pay a dividend that our debt ratio and our debt level is solely in the hands of the company and the Board and our bankers are pretty happy with us actually I think as to where we've got to. So we don't mean to confuse you by, I guess, explaining where we're at. So hopefully that's enough to give you some assurance. Brett, do you want to add anything to that? I think you can. Okay. So we are on track. Peter just mentioned about bringing capital forward is the shipping disruptions at the moment, we're allowing on capital equipment sort of 6 to 8 weeks additional shipping time because we need there's a finite window for us to install the equipment. So if we won't have to guarantee that that equipment will be here in time for basically the Christmas period. So we've been ordering this equipment much, much earlier than we normally would have. So that's that factor there. So and that's part of the reason why last year our capital was as being was a bit lower, simply because we just said, we don't know whether we'd be able to A, get the equipment here and B, then are we going to be able to get technicians into the country to install it. So there was a lower level of capital spend last year. Sorry, did you have a second question? And then Mike will come to this gentleman. One more there and then we'll come to you, sir. Well, one thing I must say, I would like to congratulate Simon for coming into the company as a CEO. And there has been a progress, I can tell you that. But as I said, the question is very clear in terms of if you look at the building sector today in New Zealand, the companies listed on the Stock Exchange in the building sector, to name a few, Fletcher Building, Steel Tube, they are all performing exceedingly well in the present circumstances. And we are seeing good growth numbers coming in and a bottom line growth coming in as well. So I think the Board has to realize that in terms of logistic issues and costs going up, you should be able to recover the costs from the customer. And that's very important because you're not chasing bad business. If you're doing any numbers, it has to add to the bottom line. And I do respect that, that should be in the consideration. And I hope so that happens. Great. Thank you for that. Mike, down here, gentleman in the front. I'm just asking about retrofitting. I guess that means double glazing, the same thing retrofitting, double glazing. Maybe you have teams of people operating all around New Zealand. I just wonder how long it takes for a team to get out and get the quote and get the job done and are those people rewarded? Seems to me that's the backbone of the business and those teams should be operating pretty well. Yes. So our retrofit business is sort of circa $25,000,000 a year and growing. It's an exact number for the last year Brent in retrofit segment. And it's growing quite strongly. And yes, it is double blazing. So we're retrofitting double blazing units into existing window frames in a house. So the sales process of that is someone books, there's an inquiry or we follow-up and a salesperson will go and visit the customer at their house, it's their house. And we can provide an estimate on the spot to them. Then if that estimate as they say, yes, I want to progress, we do what we call a final measure. So that depends on when the customer says, yes, I'm interested in proceeding. We go and visit and do a final measure. Typically, the salesperson does that as well. We provide them a quote on the spot. And then when that customer accepts that, depending on the location and the access and those sorts of things at the moment, it's between 4 weeks 12 weeks to do the installation program. And that's done by a crew of between 2 and 4 people and that can be done in just depending on the size of the job, it can be a day or some large jobs might take 4 weeks where we do sort of like a hotel or something like that. Yes, so it's a very we've been doing a lot of work on standardizing how we do that across the company. And I think we're doing it very, very well, which is one of the reasons why that part of the business is growing and we're seeing very good growing margins in that business as well, which is pleasing. Thank you. Is there Mike on the back there? Yes, Edward Stranahan. I'm a shareholder in the company. Just a couple of short questions. I was just interested, you were talking about apprenticeships that you have. What sort of trades are those? Yes. So that we're primarily in the glass trade. So we have glass processing. So that's within the factories and then the glazing and that's on the installation side. Really specialized apprenticeships? Yes. Yes. And it's covered under the construction industry program. So we've got about, I think, 85, 86 at the moment and we've got half a dozen that are just going through the sign up process. I've challenged the business to get to 100 and we've sort of been sitting around this level for a year or so now just because the people come out of their time as we bring new people in. We would like to expand that across the people in the engineering trades as well that we're just sort of working through that, yes. The other question that I had is we've got about 4 months of the current year gone. How's both the revenue and EBIT looking compared to say the last year? Is it that sort of level or is it an improvement and perhaps getting back to the level of the previous year? Yes. Look, just making a comparison to last financial year, it's just you just really can't because New Zealand was shut for 6 weeks basically or 5 weeks. And so it's just we're just not able to really make it meaningful. And it's best that we give you an update that on November half year where we can sort of show you a better comparison. Yes. I was just thinking since we've still got the COVID restrictions, maybe not with the lockdown and so on that that's not quite as bad as last year, but it's certainly better than last year and worse than the year before. That's why I was looking for the comparisons. But are you sort of saying that you haven't got the figures pulled together yet for the 4 months? Yes. I mean, we've just got the July sales. So we're still working strongly. It's just a bit that we do that at half year. Australia, the revenue is up, it's tracking well. The restrictions in Australia, late yesterday, I got a call from Steve in Australia saying, man, we're just gone until we shut down and locked down in Melbourne. It's incredibly fluid over there, but all our plants are operating. Sydney is a little bit reduced in capacity. But yes, sales in Australia, we're very pleased with where they are and the demand is good and same in New Zealand. Thank you. Thanks for those questions. Mike down the front here. And any other we've got one down here. Any other questions in the room? We'll get a mic to somebody in back down. So, sir. Hi, Ross Morel. I'm just curious, obviously, we're so New Zealand we're maintaining in the supply chain and capacity pressures, but some of your language about Australia there seems to be underneath a lot of positivity there that there was a word used fragmented market. I'm just curious about there seems to be a lot of potential there in your language. Could you clarify that please where the growth is especially in line with the word fragmented? Yes. So look in Australia, it's a very, very different market to New Zealand and that New Zealand basically 95% plus of all residential uses double glazing. If you go into Australia and New South Wales, it's sort of that 15% it's a bit hard to get the exact number, but it's about 15%, maybe a little bit it's between 15% 20%, probably more to 15% of new builds use double glazing. If you go into Victoria, it's in that 50%, 55%, maybe up to 60%. Tasmania is about 50%. So they're a long, long way behind in the adoption of double glazing there. So that's and that is changing. But one there is a changing in the building codes coming next year, late next year. It's actually implemented and it rolls out across different zones around the Eastern seaboard states. And so that will basically require people to use double blazing in their houses. So that will have a massive drive growth and the demand for double glazing. So that's where the why we're very positive about the Australian market, because we are viewed in the Australian market as being the leading double glazing supplier. And AGG always has been viewed as that. And yes, it is quite a fragmented market. So you have so there's one other player in the Australian market that operates in 3 states that we operate. But there are a number of players in each of those states. So we sort of have that ability across the whole of those that eastern seaboard. So we're quite well positioned there. Also we have my view is a very strong news that we have by far the best range of low e soft coat glass available to produce a range of double glazing products that suit different sort of applications, whether you're wanting to keep solar gain out, keep warm thin and all that sort of thing. It's quite a technical offering. So the market is just more divided than it is in New Zealand. That was the point of fragmented. It's another question was the one at the back or one down here, Ma'am? Jenny Miller, shareholder. When Simon joined the Board, you said he came cheap relative to his predecessor. Thank you, Simon. But I've had a look at your the way the structure of the CEO pay is and it's he's been paid out a 100% or 99.5% of his short term incentive bonus and that is based on an EBIT and that has actually deteriorated and I'm trying to think well if it's deteriorated from last year what was the benchmark? And I wonder if rather than you're in the industry of glass, rather than being a bit colored, why don't they make the pay include those sorts of things rather than get our shareholders on that it can drop from year to year and you're still going to get 100% target? I should answer that one. I apologize calling you cheap, I don't remember. But every year, the short term there are 2 incentives for senior executives, a short term one and then a long term one. And it's outlined in the annual report and on the website. I think your comments refer largely to the short term one. And every year, we set the business plan, which will have certain targets in terms of sales, costs, revenues. And that is what we agree with the management team to say, deliver this and your incentive is pegged to the delivery of that. Fail to deliver that and you will get less and less to none. Deliver more than that and you will get a leverage bonus on the base. And that's on the basis that the pot for all of us, all shareholders, has expanded sufficiently that it's reasonable to share a part of that with our executive team. So you can get the effect of the STI set in year 2 or 3 years ago will be based on different numbers than the ones that we're setting now. And a person back then could have got 100% or 80% or 120% and the same this year. So it's an annually reset system. And we're very aware of where is the balance or fairness between the efforts that the management team put in managing the company and the flow of wealth or increased value to shareholders. And we're aware of the way this company has operated in the last few while. So that's why you get that effect. It's something we agreed way back when and we check it every year. Just to pick up on that, it's not the way that the incentive works. It's the fact that your decrease last year for EBIT, it's got worse and yet you pay out 100% or 99.5 on the short term. My point is why not just pay Mr. Manda the $1,000,000 rather than the $353,000,000 and the $600,000,000 basically. You can't have an incentive where the things are tracking down and you pay up basically. I think I get your sentiment. I mean, I'm not sure we're talking the same numbers. But the Board's view is that having base pay and short term incentive and long term incentives in the package for our senior managers is a better way of remunerating than just paying a lump sum regardless of what happens year on year. And that is the way we are set up at the moment. I know there are other people who go, those things don't work, we should just pay a lump sum, pay for a fair day's work, that's it. Now that's not how we are set up at the moment. Perhaps we can catch up. Have you got one more question? I have one more question. Has something changed in the way you do your cash flow hedges? I see it's gone to a $1,100,000 loss and opposed to a 976 last year a year before profit? No, it hasn't changed. It's just a function of where the spot rate was at the end of the year relative to the previous year. So remember the end of last year, the New Zealand dollar was quite a bit lower than where it was at the end of the last financial year. So it hasn't changed, just a function of that. Any other questions before we perhaps move on to the resolutions? We do have opportunities for further questions during those. So if something occurs to you during the rest of the meeting, please ask. And again, after the meeting, we'll be around as well. So we can answer questions then. So thanks, Simon. Right. Let's I better check. Are there any more questions online? We just had one final question that came through from Jack, which was which I think we might have kind of touched on, but was can you please share some indicative financial figures for F 'twenty two? How much of the earnings impacted? And I guess as we've talked about, it's a little bit too early in the year at this stage. We've got a very dynamic environment, but the market conditions are very stable and robust generally. But I think we've decided it's a bit early in the year to give out financial guidance for F 'twenty two. I mean, our concern is that the environment could change so dramatically on us that whatever we said today would be out of date in 6 or 7 hours as of example Australia last night. So we're trying to be prudent and cautious about forward looking statements. So ladies and gentlemen, let's move on to the resolutions of the meeting of which there are 3. There are opportunities for questions to be asked. And for those of you in the room, all of you should have a voting card. It should have been given to you as you registered. If you have not got one of these, please talk to Link Services, our registrar and they'll give you one. Shareholders online are also able to cast their vote by when you registered online and validated, you should have been able to get a get voting card and you should have an online voting card. During the meeting, I'll ask you to mark those cards either for, against or abstain on for each resolution. And if you're online, please don't forget to click submit vote when you're ready. And in the room, please make sure that you get your cards to link at the end of the meeting. So the 3 resolutions are ordinary resolutions. They just passed by a majority of those that vote. Proxies have been appointed and we've had advanced voting as well. I mentioned 54,000,000 shares, approximately 29% of the company stock has been voted. My fellow directors and I intend to vote discretionary proxies in favor of the resolutions. Voting will remain open for about 5 minutes after the conclusion of the meeting, so you will still have time to get your votes in. We'll be taking a poll on all of these resolutions and the results of those will be published on the NZX, ASX and on our website as soon as they are to hand later today. So the first resolution is concerning fixing the auditors remuneration and seeks shareholder approval for the Board to set the annual fees. PWC have been our auditors since the company listed approximately 7 years ago. And in accordance with the governance code, we've had a change of lead audit partner since the beginning of last year and Troy is our partner at the moment. So I now propose that the Board be authorized to fix the fees and expenses of PwC as the auditor for the ensuing year. Are there any questions regarding this motion? Okay. If there are no questions, could I please ask you to mark your cards or select for against or abstain for Resolution Number 1. Okay, moving on. The next two resolutions concern the election of directors. So under the NZX listing rules, directors must not hold office without reelection past the 3rd annual meeting and following their appointment. And Rees Jones accordingly retires by rotation and offers himself for reelection. Now, while only one of our directors meets that rule, Reese, I've offered to we prefer to have a relatively consistent number of directors stand for election every year. And so accordingly, I've voluntarily retired and offer myself for reelection this year. I'm slightly out of sequence, but that doesn't really matter. So we'll have 2 directors standing. It's the Board's opinion that both Rees and I are independent as defined by the boosting rules. And unless it's been a last minute change, the Board supports the election of both directors. So Resolution 2 concerns my reelection. And so I've asked Angela Bull to come up as who's the Chair of our People and Culture Committee and asked her to run this part of the meeting. So Angela? Thank you, Peter. Good morning, everyone. Resolution 2 concerns the election of Peter Griffiths as a Director. The Board recommends Peter to you as a Metro Performance Glass Director and as Peter noted, we unanimously support his election. Peter's credentials are outlined in the annual report and in the notice of meeting. Peter, would you also like to briefly address the meeting? You heard me speaking a fair bit this morning and I'm sure that's given you an opportunity to form some sort of impression of me. But I guess the question is what do I bring to the Metro Board personally? And I think what I when I reflect on that, I'm motivated by being part of participating in the challenges of running businesses in New Zealand. And my experience as an executive and my broader experience as in the government space as a director, I think sort of give me a certain perspective. And I absolutely believe that a safe, respectful and a collegial culture around the board and inside the company leads to an efficient, profitable, customer centric culture in the business. And I think that's the thing that I personally try and bring to the company. I'm excited by being part of Metro and I would very much welcome the opportunity to continue to serve as a member of the Board. So thank you very much. So I now propose that Peter Griffiths be elected. Well, are there any questions then regarding the motion that I was about to say? Mike? Hi, I'm Bruce Parks. I'm the proxy holder of the Shareholders Association. My question is a bit general, but it's asked now at your invitation. You mentioned another director being appointed. And going from the skilled mix you have in your annual report, that person should be Australian based, younger female with skills in B2B marketing. Can you comment on that, please? Yes, sure. Yes, for the first time in the annual report, we published our view of the matrix of skills of the what the directors have and what we think the company needs. We don't expect to be able to complete that matrix by pointing 1 or 2 different individuals, but our new director search is focused in Australia. We have a significant business there. Clearly, it's difficult for directors to travel back and forwards across the Tasman at the moment. So having an Australian based director is very important. We're very mindful of diversity, both in terms of gender, but in terms of thought and background and experience, and so we're taking that into account as well. And the process is underway looking for someone to fill that role and we're quite well down that path. And your speculation, well, we'll see how close we get. Will the Australian Director attract a higher regeneration as in some companies? No, same as everyone. One last question down the back. My name is Trevor, I'm a shareholder. Just a question about the new equipment that's coming, that's being put on order. Just for your to satisfy me that you're the right guy for this job. That new equipment in board terms, what's it for? Okay. There's a range of it. We've got things like I mean because it's quite a significant capital expenditure. So I'm just asking how much of that particular decision making process you personally know about being the Chairman of our Board? Well, I'm aware of the yes, pretty much all of it. So I can give you examples of we're improving the work we do in our edge shop, which is the flat glass part of the business where we shape glass, edge it, drill holes a bit and so on. So the equipment we're getting is aimed to improve our throughput per hour and our reliability. I'm sorry, did you hear the original bit? Just an example, some of the equipment we're getting is to improve our edge shop work, which is the flat glass processes that are not glass going to double glazing typically, so balustrades, showers, splashbacks, things like that. And the equipment we're getting is aimed to increase our throughput and accuracy of those processes, so we can process more glass more quickly with less failures. So we're spending money on those sorts of units. We're also looking at things like increased furnaces in terms of their size and throughput and their energy efficiency because more and more of the glass that we are selling is now required to be tempered or hardened and you have to put that through a furnace. Also the size of the windows is getting larger and we're starting to get to the point where the bits of glass trying to get through the furnaces are approaching the size capacity of those furnaces. So we are looking to do that. The other thing we're looking to do is to have some redundancy in equipment. So that we don't just have one of something, so that when that fails, our system stops. We have multiple routes so that we can keep operating while one piece is down or being maintained, things like that. So there's a whole range of items. There's also things like robotics. So machines to pick things up, turn them around and put them on other flows. And so that we don't have people having to bend down and pick up tons and tons of glass a day as part of their normal job. So those are the sorts of things we're spending our capital on. Okay. Jenny Miller, shareholder. We note on your annual accounts page 70, the corporate governance, there's only moderate skills and strategic investment banking and B2B marketing. And I'm wondering what all of the directors are doing to upskill given we're talking about debts and ASX and NZX? I think all of the directors have got experience in listed company governments. That's not what's really referred to there. It's more things like where we to go for a capital raise or where we to do some more sophisticated financing, do we have the experience around the board. Now a number of us have already been through that process. We've raised capital. We've done those sorts of things. But we don't have a merchant banker, if you like, somebody on the board with that sole experience. So that's really what that line is about. Question is, do we want to fill it or not? I would say probably not because merchant bankers are high at guns. You can buy in that experience when you need it and you don't necessarily have to have it taking up one of the few chairs around the table. Sorry just Try again. Sorry just to make it clear, if you think you can buy it in, why did it appear in the corporate governance section and have moderate? Is it really a skill that the directors actually need in reality? I think when you look at the broad range of skills that a typical board should have in a capital market, you would have that line there. I don't know, maybe they're being a little modest in saying, we've got moderate skills. We haven't got low skills and we haven't got anyone who's kind of got that as a sort of an executive history. And so that's really why we're noting it. But we're open to have a discussion. Part of the reason for producing that matrix is for you to observe those things and query them. So thank you for your questions. Okay. I'm just mindful of time, so we can move on. Are there any questions online? Thank you. Okay. So with the motion that Peter Griffiths be elected as the Director of the company, could I please ask you now to select your voting papers either for, against or abstain in the appropriate place? Thank you. I'll now hand back to you, Peter. Okay. We're on to our final resolution, Resolution 3, which is the election of Rees. Rees, if you could come up. The Board recommends Rees to you as a Metro Glass Director and unanimously supports his election. Rees' credentials are outlined in the Annual Report and the notice of meeting. Rees, would you like to say a few words? Thanks, Peter. Just briefly, as far as my background is concerned, first, real privilege to be serving on the Metro Board. It's been a challenging period in the last few years. So my main skills historically have been worked across Australasia in manufacturing and building products and distribution businesses and B2B marketing effectively. But the challenge in the last period has been putting the business into a position where it's rock solid and it can actually grow and develop further. And I think Simon and the team have done a very good job. And as a Board contributor in that process, I feel that we've made some real progress. But the second phase is really we're at the starting point, we've got to really grow the business and you've heard from the priorities that have been listed. It's about facing up to a regulatory environment that's changing, which actually does provide a lot of opportunities. It also talks about really driving our customer satisfaction up to a new standard so we can really grow on merit and really succeed. And you're seeing clear signs of that. But more importantly, we've also got the opportunity to grow in Australia. So at a practical level of growing a business in Australia for a lot of wide experience in growing industrial and building products related businesses. So my role in the Board is really to contribute and add comments, advice, coaching, challenge to the process of what strategic options we have, how do we address them, the speed at which we address them and the focus to really grow and improve the business further. So any questions? Very pleased to hear you talk about growth. I mean, I think the trouble with this company since listed, whenever it's tried to grow, it's been a disaster. So I look forward to growth and let's face it, that's what the share market looks for. And we've seen no growth at all basically. Obviously, New Zealand is overcapacity, which has been referred to by the directors. So I'd like your views on do you think this company will just grow organically or do you look forward to some merger or takeover of some substance? The quick comment I'd make is that it's very difficult to grow if your base service isn't to the right standard. So one of the key elements that had to be addressed was the culture and service standard of the business, investment in equipment reliability and the like. I think that has been achieved. So the business is now on a firm footing. And particularly Australia, that business was really struggling, AGG. And Simon and the team have worked extremely hard to get DIFO market selection right. He's talked about that. He's had to completely rationalize a large range of customers and products to sit it in a position. Its revenue is very similar to what it was a year ago, slightly high with a much reduced product range. Now it can really grow. And I think organic growth is a big opportunity. In terms of merger acquisition, it's always available in the future. But first of all, you've got to have a track record of organic growth and evidence that you're a very valuable and performing company. Another testing question, sorry. So Australia we're talking about, we're hearing about growth with the retrofit in New Zealand. It's logical to have some commentary about the Australian market or potential is there a lot of competition. What's the update there? I think that from a DG well, first of all, very specifically, there's regulatory environmental change in Australia which is really encouraging double glazing. So, you've got the real opportunity to be an early mover in that environment and grow really quite strongly. Places like Central New South Wales and the like have really got quite harsh climates. Not that we'd think it from here, but they really are quite harsh both in heat and cold. So we've really got quite a significant opportunity. And again, Simon and the team are looking very hard at what to invest, how to invest and get the absolute mix and productivity out. And one of the key elements here is getting the operational performance to a standard we can grow and deliver to the client consistently. So trying to do it in a measured careful way, but I think the upside is pretty significant. Do you want to comment on that, Simon? Yes. I think, Risa, you're absolutely right. To grow in this like with the customer base that we have that are all manufacturing, you've got to be a very, very consistent reliable stable supplier because if you're not, you end up destroying their business. And so that's the thing that we've been focusing on certainly since I've been in the business is let's make sure that we deliver excellent customer service consistently and we help our customers to grow. And in Australia, it was frankly performing very poorly. It is now being very consistently performing and customers are choosing us because of our delivery performance. So we're positioned very, very nicely there to grow. And likewise in New Zealand, I believe too. Can I just qualify that? I was talking about the retrofit. Here in New Zealand, the retrofits, you're saying to $25,000,000 a year, which is significant growth on the $16,000,000 previously. So what I'm saying is moving that to Australia, the retrofit side of it, not just the double glazing units. We're talking about retrofit. Yes, if I can just clarify. If you can add $25,000,000 of sales in New Zealand, sure you can point to $50,000,000 in Australia. Yes. In Australia, AGG, we only supply glass. We don't do any installation work at all in Australia. So in New Zealand, we've got 225 roughly people every day who are out there installing glass. In Australia, we just deliver it. It's a very different the installation side of the market in Australia is one that we prefer not to participate in. But having said that, we have a number of customers whose business is retrofit that we supply. We'll take one last question. Just your muffins are getting cold. Yes. After hearing all the commentary, it looks like probably the company is seeking growth in Australia, New Zealand being at the backbench in terms of the competition which has come in. And I'm just wondering, Australia is 10 times bigger, an average 10 times bigger market than country like New Zealand. So what do you think there will be capital required to pursue those growth? Because here you are talking about reducing debt, paying dividend. Now I don't understand how you can grow in a market which is promising without capital. So would the Board think about probably bringing in a deep pocket sooner? Look, I'll have a crack at 2 elements. I think we don't want to get confused. I had a specific question about growth in Australia, so I was specifically answering it. We've got 3 factories in Australia. We want to absolutely optimize those. Those that business in total wasn't making money. It's basically a breakeven. It's got a big opportunity to improve further. If it improves further, the value goes up significantly, it gives us options as a company. That is not a capital heavy structure. That is just what we've got today working well, adding more shifts and getting more output. The second question is, can you grow further in Australia, add capacity, add capital, then you clearly do that as a second step if you elected to do that. And that's a strategic option you create if you do that first bit really well. So that's what Simon and the team are trying to do. They're trying to get to that first stage. Do you want to comment on that, Simon? I think you've got it. Yes. Okay. Ladies and gentlemen, I'll draw the question to a close there. Thanks, Reese. I now propose that Reese Jones be elected as the Director of the company. If you could please select for, against or abstain on your voting cards or vote online. While we are doing that, I think we're going to put up the summary of the voting that we've got to date. So you can have a look at that. That's largely postal votes, I think. I don't think any of the activity that is going on today has been added to that total. So if you voted if you could if the link folks who are at the back of the room, they've got the little blue satchels, if you could give them your voting cards once you're ready, we'll collect those before we close the meeting. If you've got a card that you'd like collected, just please indicate to one of the gentlemen and lady. If you're online, please mark your votes and don't forget to collect submit vote. Okay, as we just bring that to an end, ladies and gentlemen, thank you very much for your time today both in the room and online. We appreciate you coming. We appreciate the questions that you've asked and we hope that the online experience has been okay. We'd be keen to get feedback on that. I'd like to thank everyone who submitted or asked questions. We do appreciate them and it gives us an opportunity to give you another perspective on what's going on in the company. So if we've got all the voting cards in, I'll now declare the meeting closed. Thank you for attending online and thank you for coming this morning. I invite you to join us for somewhat later morning tea and something warm to eat. So thank you very much for your time this morning.