Slide 1: Mpac Group plc 2019 Full Year Results
Mpac Group plc 2019 Full Year Results March 2020
Slide 2: Agenda
Agenda 1 1. Overview 2. Full Year 2019 Financial Highlights 3. Mpac Lambert and full line solutions 4. Strategic Update 5. Outlook 6. Appendices Mpac Group plc 2019 Full Year Results
Slide 3: Overview
Overview 2 Review Tony Steels Chief Executive
Slide 4: 2019 Full Year Summary
Overview 3 2019 Full Year Summary • Excellent progress made on strategic initiatives, resulting in a step change in financial performance • Successful acquisition and integration of Lambert Automation • Order intake growth ahead of expectations • Revenue increase of 52% over prior year • Significant
Slide 5: Mission, Vision & Values
Overview 4 Mission, Vision & Values Mission Vision Values • To be a global leader of high speed • Double digit (CAGR) organic growth • Integrity packaging and automation • Deliver on our promises, respect solutions • Sustainable 10% ROS and value others • Excellence • Customer focused, responsive an
Slide 6: Executive Leadership Team
Overview 5 Our Leadership Warren Limbert Michael van Frederici MD Lambert MD Langen EMEA Executive Leadership Team Theo Rovers Will Wilkins Innovation Director Group Finance Director Michael Brown MD Americas
Slide 7: What we do
Overview 6 What we do 1 2 Creating and enabling Provider of high speed new ideas that give a processing and packing competitive advantage technologies that drive and keep customers at the business performance and forefront of their markets long-term value 4 3 Condition monitoring technologies are in
Slide 8: Key Markets
Overview 7 Key Markets Mpac has a highly skilled and experienced team dedicated to Full Year 2019 Sales by Sector (%) finding practical solutions for our customers. Operating in the Pharmaceutical, Healthcare and Food and Beverage sectors, we meet the ever-increasing demand of our customers’ manufac
Slide 9: Global Reach
Overview 8 Global Reach Coventry & Tadcaster (UK), 205 staff Mississauga (CA), 10,000 m2 100 staff 4,500 m2 Wijchen (NL), 165 staff 4,700 m2 Singapore, 15 staff Manufacturing Sales Customer Support • 10,000 machines in service • 80 countries served Mpac Group plc 2019 Full Year Results
Slide 10: Sustainability vision
9 Sustainability vision Our sustainability vision is broadening and growing with us… We promise to do our part in protecting the planet’s future; partnering with our customers to support their reduction in packaging materials usage and the effective adoption of biodegradable and recyclable materials
Slide 11: Acquisition
Acquisition 10 Overview Acquisition Mpac Group plc 2019 Full Year Results
Slide 12: Acquisition Company Overview
Acquisition 11 Company Overview Business summary • Mpac Lambert provides customers with full process provision from design process consultancy to implementation of full turnkey multiple line automation systems and maintenance support • Three key operating units – Automation Systems, Equipment Engine
Slide 13: Acquisition Core Competencies
Acquisition 12 Core Competencies Design & build bespoke machinery, early stage product & process innovation, and through life service & support Assembly Systems Packaging Systems Web Handling Manufacturing Systems Medical Devices, Drug Custom packaging Wound care, critical care Build to print and De
Slide 14: Mpac Lambert acquisition accelerates innovation
Mpac Lambert acquisition accelerates innovation 13 Enabling full line solution selling Full line solutions offering The acquisition of Mpac Lambert provides Mpac with additional Investment in Innovation capacity and technology to accelerate the development of an integrated full £1.8m (2018: £1.4m) a
Slide 15: Financial Highlights
2019 14 Financial Highlights Will Wilkins Group Finance Director
Slide 16: 2019 Full Year Financial Highlights
2019 Full Year 15 Financial Highlights • Increase in Group order intake of £23.8m (37%) OE Revenue Service Revenue to £87.6m (2018: £63.8m) and 18% on a like for (£m) (£m) like basis £69.4m £19.4m • Increase in Group sales of £30.5m (52%) to 2019 69.4 2019 19.4 £88.8m (2018: £58.3m) and 24% on a lik
Slide 17: Group Income Statement
Group Income Statement 16 For the year to 31 December 2019 2019 2018 (£’m) (£’m) change Key highlights: Revenue 88.8 58.3 +52% • Excellent financial performance, with increase -Original Equipment 69.4 46.2 +50% in OE and Service revenue and margins 19.4 12.1 +60% -Services • Organic revenue growth o
Slide 18: Cash bridge and working capital
2019 Full Year 17 Cash bridge and working capital Financial bridge on net cash (£m) Working capital Inventories -£3.2m OE projects in stock Trade debtors +£5.2m General trading levels Trade creditors / Contract Flush through of 2018 orders assets/liabilities -£4.5m to HY2 delivery Provision +£0.4m A
Slide 19: Pension scheme
2019 18 Pension scheme UK Pension Scheme – IAS19 surplus UK Scheme (£m) Surplus • Actuarial deficit reduced from £70m to £35m, including £8.5m GMP equalisation charges 400.0 Liabilities • Structured de-risking process undertaken, balancing : 375.0 Assets • Asset growth to eliminate the deficit throu
Slide 20: Strategic update
Overview 19 Strategic update Tony Steels Chief Executive
Slide 21: Strategic update: On track to deliver
Strategic update 20 On track to deliver Global leader of ingenious high speed assembly and packaging automation solutions Going for Growth Make Service a Innovation Operational People Business Efficiency Improved customer Improved operational Go beyond our Improved returns and Engage, retain and per
Slide 22: Addressable growth markets
Strategic update 21 Addressable growth markets Sector Solutions Market value CAGR Drivers • Dry Powder Inhaler 4% • First of a kind Pharmaceuticals • Test and Measurement $8.5bn* Pharmaceutical Premiumisation Recycling • Ostomy 5% • Contact Lens • Personal Care $7.5bn* Healthcare Healthcare Increasi
Slide 23: Strategic priorities
Strategic update 22 Strategic priorities During 2019 Future plans • Lambert acquisition • Full solutions offering to Healthcare customers Going • Innovation to expand Case Packing range • Integrated packaging solutions for Growth • New customer acquisition • Industry 4.0 Commercialisation • Increase
Slide 24: Service as a Business
2019 Service as a Business 23 Performance optimisation Innovation in Service Investment in skills and resource Delivering improved overall equipment efficiency and life cycle ROI Delivering an advanced HMI with all automation Our global service team cover all regions Our Service engineers work colla
Slide 25: Outlook
Strategic update 24 Outlook • One Mpac business model delivering on strategic plans • Mid term report verifies strategy on track and advises areas to re-focus • Integration of Mpac Lambert completed • Innovation roadmap will deliver further new products to be commercialised in 2020 • Full solution c
Slide 26: Appendices
25 Appendices Mpac Group plc 2019 Full Year Results
Slide 27: Income Statement
Appendices 26 Income Statement 2019 2018 • Revenue increase of 52% over 2018 £m £m • Non underlying items of £2.4m include: Sales 88.8 58.3 • Acquisition costs £0.9m Underlying operating profit* 7.7 1.4 • Amortisation £0.9m Non-underlying operating loss (2.4) (9.0) • Pension admin costs £1.2m Operat
Slide 28: Segmental Information
Appendices 27 Segmental Information 2019 2018 £m £m Sales Original Equipment ‘OE’ Original Equipment • OE revenue increase 50% over 2018 Americas 45.8 20.5 • Americas revenue increase of >100% EMEA 17.6 20.1 Asia Pacific 6.0 5.6 • EMEA impacted by fewer first-of-a-kind orders Total Original Equipmen
Slide 29: Cash Flows
Appendices 28 Cash Flows Dec 2019 Dec 2018 • Cash flows from operating activities in 2019 include: £m £m • £2.1m working capital increase • £2.9m of pension payments Cash flows from operating activities 5.1 (0.9) Cash flows from investing activities (12.7) (1.2) • Re-organisation costs paid of £1.0m
Slide 30: Working Capital
Appendices 29 Working Capital • Increase in working capital reflects the build phasing of long Dec 2019 Dec 2018 term projects alongside project cash flows £m £m • Significant increase in OE order intake in Q4 2018 unravelled (Increase)/decrease in inventories (3.2) 1.7 in the second half of 2019 an
Slide 31: Balance Sheet
Appendices 30 Balance Sheet Dec 2019 Dec 2018 • Intangible assets from Lambert acquisition - £15.3m £m £m • UK pension scheme surplus static as a result of the return on plan assets offset by the movement in the discount rate. Intangible assets 16.3 1.0 (1.9% v 2.7%) Investment property 0.8 0.8 Prop
Slide 32: mpac-group.com
Mpac Group plc 13 Westwood Way Westwood Business Park Coventry CV4 8HS Tel: +44 (0)2476 421100 Email: ho@mpac-group.com mpac-group.com