Slide 1: Mpac Group plc 2017 Full Year Results
Mpac Group plc Ingenious Packaging Solutions 2017 Full Year Results March 2018
Slide 2: Agenda
Agenda 1. Overview 2. 2017 Financial Highlights 3. Strategic Update 4. Outlook 5. Appendices 2
Slide 3: Overview - Review
OVERVIEW - REVIEW Tony Steels – Chief Executive
Slide 4: Strategic Update
Strategic Update Transformational year of progress against the strategic plan: • Strategic plans accelerated by the divestment of the I&TM business • Continuing business 100% focused on target growth markets • Order intake, order book and sales all exceeded strategic plan • Leveraged embedded partne
Slide 5: What we do?
What we do? Global leader in “Make, Pack, Test, Service” high- speed packaging solutions Make Pack Test Service Creating and enabling new ideas Provider of high speed processing Test and inspection technologies Providing lifetime service that give a competitive and packing technologies that drive ar
Slide 6: Core Skills & Experience
Core Skills & Experience Dosing and Web Assembly High Cartoning Case Packing filling handling automation and specification automation End load cartoners We have a long We are specialists High-speed web robotics have been a core history of in the design of handling, forming, We have designed Continuo
Slide 7: Key Markets
Key Markets Mpac has a highly skilled and experienced team dedicated to finding practical solutions to your challenges. Operating in the pharmaceutical, healthcare and food and beverage sectors, we meet the ever- increasing demand of our customers’ manufacturing processes and operational objectives.
Slide 8: Global Reach
Global Reach Service personnel Office locations (engineering, manufacturing, sales & service) 8
Slide 9: 2017 Financial Highlights
2017 FINANCIAL HIGHLIGHTS Jim Haughey – Group Finance Director
Slide 10: Overview – 2017 Financial Highlights
Overview – 2017 Financial Highlights Sales by region 2017 • Order intake increased 21% year on year (£m) • Closing order book 35% increase over 2017 opening 9.8 position 20.4 • Increase in Group sales - continuing operations of £11.9m (29%) 23.2 • Underlying operating profit of £1.3m (2016: £1.2m lo
Slide 11: 2017 Group Performance
2017 Group Performance £m £m 11
Slide 12: 2017 Group Performance
2017 Group Performance £m OE GP = Original Equipment Gross Profit Service GP = Service Gross Profit 12
Slide 13: 2017 Group Performance
2017 Group Performance £m £m 5 year revenue chart (continuing) 35 30 25 20 H1 15 H2 10 5 0 2013 2014 2015 2016 2017 13
Slide 14: Pensions
Pensions General • PPF stated 66% of pensions schemes were in deficit 420 • Of the deficit schemes, the Median funding level was 86% • Molins scheme was 87% funded (2nd quartile) Surplus 410 Deficit 400 Liabilities UK Scheme Assets • IAS19 surplus of £17.7m 390 • Mature scheme with 4233 members (68%
Slide 15: Strategic Update
STRATEGIC UPDATE Tony Steels – Chief Executive
Slide 16: Mission
Mission • To be a global leader of high speed packaging solutions focused on attractive growth markets enhanced by a world class service offer programme to ensure customers achieve maximum return on their investments • Customer focused, responsive and flexible through operational excellence underpin
Slide 17: One Mpac Business Model
One Mpac Business Model ONE Mpac MAKE PACK TEST Innovation Vision systems Discovery Configured Solution Lab scale µ dose Machinery Machinery Diagnostics Primary Packaging Secondary Packaging “One Off” ONE Mpac Single entity business model – common processes 17
Slide 18: Addressable Growth Markets
Addressable Growth Markets SECTOR SOLUTIONS MARKET VALUE CAGR DRIVERS Pharmaceutical » Dry Powder Inhaler 4.9% » First of a kind » Test and Measurement $29 billion* Premiumisation Recycling Healthcare » Ostomy » Contact Lens » Personal Care 5.3% Increasing Health Food and beverage » Bakery income »
Slide 19: Application Know-how
Application Know-how Knowledge based solutions to leverage across established customer base 19
Slide 20: Case Study Contact Lenses
Case Study Contact Lenses Challenge Customer USP - historical brands and SKU’s are retained. Some maybe only used 3~4 /yr. Minimum batch was 20 packs leading to high inventory, manufacturing costs and product expiry Solution Store in unbranded state. Individual label blisters and load labelled blist
Slide 21: Strategic Priorities
Strategic Priorities DURING 2017 FUTURE PLANS • Commercial excellence programme • Full solution selling • Drive regional sales structure • Product Development Roadmap Going for Growth • Launch Mpac identity • Key account development • Pipeline management - CRM • Brand and Product Management • Create
Slide 22: The Journey - update
The Journey - update • Sale of I&TM • Relocation of Canadian Business • Onboard new leadership team • Product roadmap • Centralised services • Rebrand Mpac • “Commercial excellence” One Mpac & cost • World class service offer reductions • Focus on Operational Efficiency • Developing people Leverage
Slide 23: Outcome
Outcome Global leader in “Make, Pack, Test, Service” high-speed packaging solutions GROWTH SERVICE AS OPERATIONAL A BUSINESS EFFICIENCY Improved Improved Improved returns customer operational and cash performance performance generation Target 10% annual organic growth and 10% ROS over medium term Tr
Slide 24: Outlook
Outlook • Company entered 2018 with stronger order book than a year before • Sustained focus on development of continuing operations • Order intake and sales strongly ahead of last year • Prime focus on organic growth • Consideration of complementary acquisitions 24
Slide 25: Appendices
S Mpac Appendices
Slide 26: Income Statement
Income Statement • Sales increase 21% over 2016 • Underlying operating profit increase of £2.5m to £1.3m • Underlying PBT increase of £2.6m in year to £1.1m • Non underlying items of £3.3m include: • Canada property profit of £4.8m • Pension admin costs £(0.8)m • Re-organisation costs £(0.7)m, with
Slide 27: Segmental Information
Segmental Information Original Equipment (OE) • OE sales increase 40% over 2016 level • Asia sales double • EMEA sales increase 41% Service • A modest 2.4% increase in turnover, as the Group’s new service team is established Sales by Sector • Sales to Food and beverage market increase 31% • Sales to
Slide 28: Cash Flows
Cash Flows • Cash flows from operating activities include: • £2.7m working capital increase, in line with activity • £4.9m of pension payments, including £2.4m due to the sale of I&TM, and £0.7m US scheme payments • £4.4m cash inflow from discontinued operations • Re-organisation costs paid of £0.8m
Slide 29: Working Capital (continuing operations)
Working Capital (continuing operations) • Strong order intake in late 2016 resulted in favourable working capital as customers deposits were not significantly utilised on projects • The Group has seen a corresponding outflow of working capital as projects have progressed through the year • Net worki
Slide 30: Balance Sheet
Balance Sheet • Group net cash balances increase by £28.6m to £29.4m, increase includes the net impact of: • Net disposal proceeds on sale of I&TM of £25.9m (£23.5m after additional UK pension payments of £2.4m) • Proceeds on disposal of the Canadian property of £6.8m • PPE includes £0.8m investment
Slide 31: Pensions
Pensions UK Scheme • IAS 19 surplus £17.7m (2016: £4.6m) 420 • Assets increased by £12.7m to £414.6m 410 Surplus • Liabilities reduced slightly by £0.4m to £396.9m, with a discount rate of 2.3% Deficit (2016: 2.5%) and a CPI inflation rate of 2.1% (2016:2.2%) 400 Liabilities • Interest rate sensitiv
Slide 32: Executive Leadership Team
Executive Leadership Team New Executive Leadership Team 32
Slide 33: www.mpac-group.com
www.mpac-group.com Mpac Group plc 13 Westwood Way Westwood Business Park Coventry CV4 8HS United Kingdom T +44(0) 247 642 1100 F +44(0) 247 642 1255 E ho@mpac-group.com