Slide 1: Ingenious packaging solutions – 2019 Half Year Results
Mpac Group plc Ingenious packaging solutions 2019 Half Year Results September 2019
Slide 2: Agenda
Agenda 1 1. Overview and what we do 2. Acquisition – Lambert Automation Limited (“Lambert”) 3. Half Year 2019 Financial Highlights 4. Strategic Update 5. Outlook 6. Appendices Mpac Group plc 2019 Half Year Results
Slide 3: Overview – Tony Steels, Chief Executive
Overview 2 Tony Steels Chief Executive Mpac Group plc 2019 Half Year Results
Slide 4: Overview: 2019 Half Year Summary
Overview 3 2019 Half Year Summary • KPIs showing positive momentum • Significant growth in underlying operating profit, leveraging efficiencies • Excellent project delivery and service performance • Acquisition of Lambert completed in May 2019 and integration progressing to plan • Vision of full tur
Slide 5: Overview: What we do
Overview 4 What we do Global leader in high-speed packaging solutions Make Pack Monitor Service Creating and enabling Provider of high speed Condition monitoring Providing lifetime service new ideas that give a processing and packing technologies are incorporated and sustaining excellence, competiti
Slide 6: Overview: Key Markets
Overview 5 Key Markets Mpac has a highly skilled and experienced team HY 2019 Sales by Sector (%) dedicated to 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’ manufacturing
Slide 7: Overview: Global Reach
Overview 6 Global Reach Coventry & Tadcaster (UK), 210 staff Mississauga (CA), 85 staff Wijchen (NL), 165 staff Singapore, 12 staff Manufacturing Sales Customer Support Mpac Group plc 2019 Half Year Results
Slide 8: Acquisition 2019
Acquisition 7 Overview Acquisition 2019 Mpac Group plc 2019 Half Year Results
Slide 9: Acquisition: Company Overview
Acquisition 8 Company Overview Industry focus Business summary • Lambert provides customers with full process provision from design process consultancy to implementation of full turnkey multiple line Food & Pharma Healthcare automation systems and maintenance support Beverage • The business has thre
Slide 10: Acquisition: Core Competencies
Acquisition 9 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 Del
Slide 11: 2019 Financial Highlights – Will Wilkins, Group Finance Director
2019 10 Financial Highlights Will Wilkins Group Finance Director Mpac Group plc 2019 Half Year Results
Slide 12: 2019 Half Year Financial Highlights
2019 Half Year 11 Financial Highlights • Increase in Group sales of £17.6m to £45.8m Half Year Sales Gross profit (2018: £28.2m) (£m) (%) • Increase in order intake on a like for like basis of £45.8m 29% 39% HY 1 2019 45.8 HY 1 2019 29% HY 2 2018 30.1 HY 2 2018 27% • Gross profit margin increase to
Slide 13: Group Income Statement
Group Income Statement 12 For the six months 30 June 2019 H1 2019 H1 2018 (£’m) (£’m) change Key highlights: Revenue 45.8 28.2 62% • Excellent first half performance, with increase -Original Equipment 37.1 22.2 67% in OE and Service revenue and margins 8.7 6.0 45% -Services • Organic revenue growth
Slide 14: Cash bridge and working capital
2019 Half Year 13 Cash bridge and working capital Financial bridge on net cash (m) Working capital Inventories +£3.2m OE projects in stock Trade debtors +£1.3m General trading levels Trade creditors / Contract Flush through of 2018 orders assets/liabilities +£4.8m to HY2 delivery Provision -£0.3m Ac
Slide 15: Pension scheme
2019 Half Year 14 Pension scheme UK Pension Scheme – IAS19 (£m) UK Scheme 420.0 Surplus • Actuarial deficit reduced from £70m to £35m, including £8.5m GMP 410.0 equalisation charges Assets • IAS19 surplus at June 2019 of £29.3m (Dec 2018: £20.5m) 400.0 Liabilities • June 18 actuarial valuation final
Slide 16: Strategic update – Tony Steels, Chief Executive
Overview 15 Strategic update Tony Steels Chief Executive Mpac Group plc 2019 Half Year Results
Slide 17: Addressable growth markets
Strategic update 16 Addressable growth markets Sector Solutions Market value CAGR Drivers • Dry Powder Inhaler 4% • First of a kind • Test and Measurement Pharmaceutical Premiumisation Recycling • Ostomy $11.7bn* 5% • Contact Lens • Personal Care Healthcare Increasing Health Income • Bakery 3% • Chi
Slide 18: Strategic priorities
Strategic update 17 Strategic priorities During 2019 Future plans • Innovation to expand Case Packing range • New customer acquisition Going • New customer acquisition • Sales coaching and performance management for Growth • Increased USA sales presence • Product development roadmap • Pipeline manag
Slide 19: Strategic update: Outcome
Strategic update 18 Outcome Global leader in “Make, Pack, Monitor, Service” high-speed packaging 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 performance perfor
Slide 20: Outlook
Strategic update 19 Outlook • One Mpac business model delivering on strategic plans • Integration of Mpac Lambert on track • Full solution customer proposition being developed • Services business gaining momentum – shared best practice • Innovation roadmap will deliver further new products to be com
Slide 21: Appendices
20 Appendices Mpac Group plc 2019 Half Year Results
Slide 22: Income Statement
Appendices 21 Income Statement June 2019 June 2018 • Revenue increase of 62% over 2018 £m £m • Significant increase in underlying operating profit to £4.6m (2018: breakeven) Sales 45.8 28.2 Underlying operating profit* 4.6 0.0 • Non underlying items of £1.8m include: Non-underlying operating items (
Slide 23: Half Year Segmental Information
Appendices 22 Half Year Segmental Information June 2019 June 2018 Original Equipment (OE) £m £m Revenue • OE revenue increase 65% over half year 2018 • Americas revenue increase of 298% Original Equipment Americas 27.2 9.1 • EMEA revenue decrease 32% EMEA 7.9 11.7 Asia Pacific 3.1 2.4 Services Total
Slide 24: Cash Flows
Appendices 23 Cash Flows June 2019 Dec 2018 June 2018 • Cash flows from operating activities in 2019 include: £m £m £m • £7.9m working capital increase • £1.3m of pension payments Cash flows from operating activities (5.7) (0.9) (3.7) Cash flows from investing activities (11.8) (1.2) (0.5) • Re-orga
Slide 25: Working Capital
Appendices 24 Working Capital June 2019 Dec 2018 June 2018 • Increase in working capital reflects the increasing scale of the £m £m £m business in the first half • Significant increase in OE order intake in Q4 2018 brought (Increase)/decrease in inventories (3.2) 1.7 (0.1) advance payments associate
Slide 26: Balance Sheet
Appendices 25 Balance Sheet June 2019 Dec 2018 June 2018 • UK pension scheme surplus increased by £8.8m as a result of £m £m £m the return on plan assets offset by the movement in the discount rate. (2.2% v 2.7%) Intangible assets 15.3 1.0 0.9 • IFRS 16 adopted – Right of use assets capitalised amou
Slide 27: Lambert Acquisition Headline financials
Lambert Acquisition 26 Headline financials • Initial purchase price Revenue • Initial consideration £15.0m (£m) • Discounted deferred consideration £ 0.4m Average £20.6m • Discounted earn out £ 2.1m 2018 17.9 • Lock box adjustment £ 1.9m • Total fair value £19.4m 2017 21.2 • Assets acquired • Workin
Slide 28: 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