Slide 1: Mpac Group plc 2020 Full Year Results
We create automation ecosystems that enhance manufacturing to help businesses adapt and grow Mpac Group plc 2020 Full Year Results March 2021
Slide 2: Introduction and Agenda
Introduction Agenda Mpac Group plc is an international company 01 Overview listed on the London Stock Exchange, with a long 02 Strategy and business model and proud history of delivering innovation and 03 Switchback acquisition excellence on a global basis. 04 Covid-19 case study 05 Sustainability O
Slide 3: Introduction: Tony Steels, CEO
Introduction: Tony Steels, CEO “2020 has been a year like no other with the whole of society facing unprecedented challenges. Our priorities in the period were to ensure our facilities were made Covid-19 secure and to develop remote solutions to support our customers, while driving forward on our st
Slide 4: Overview: 2020 full year summary
Overview: 2020 full year summary > Covid-19 resilience, agility and flexibility ensured Mpac Order intake continued to provide essential customer service support > Prior investment in expansion of Americas commercial footprint leveraged market strength £83.9m (2019: £87.6m) > H2 Original Equipment q
Slide 5: Overview: Ingenuity without limits
Overview: Ingenuity without limits Who we are What we do Mpac Group plc is a global provider of full-line packaging and We understand our customers’ needs to provide high-speed automation solutions to our customers in essential growth packaging and automation solutions, including, primary, sectors.
Slide 6: Overview: Expanding customer partnerships
Overview: Expanding customer partnerships Whole Line Whole Life Whole Planet Using limitless ingenuity to align Maintaining peak overall Helping businesses grow global manufacturing equipment effectiveness for globally while embracing the lifespan of machines sustainability > Global whole-line integ
Slide 7: Overview: Where we operate
Overview: Where we operate The Group serves its customers through its wide geographic spread of sales, service and manufacturing locations. We support 2 Innovation Centres 4 Global Manufacturing Facilities 7 Customer Service Hubs 180 Global Engineers & Designers our international customer base throu
Slide 8: Strategy: Business model
Strategy: Business model “We channel limitless ingenuity to create and optimise whole line manufacturing ecosystems. With many parts, in many countries, our world-class productivity helps our clients achieve more with less.” Consult Monitor Early customer engagement and Expertise to connect to contr
Slide 9: Strategy: Goals and priorities update
Strategy: Goals and priorities update An update on our strategic priorities Going for growth Service as a business Operational efficiency Innovation People 2020 progress 2020 progress 2020 progress 2020 progress 2020 progress > Switchback acquisition > Agility to adapt to Covid-19 > Roll out of Grou
Slide 10: Strategy: Addressable growth markets
Strategy: Addressable growth markets Sector Solutions Market value CAGR Drivers > Dry powder inhaler Premiumisation Recycling Pharmaceutical > Point of use drug delivery $4bn* 5% > Device assembly > Ostomy Increasing Health income Healthcare > Contact lens > Personal care $6.7bn* 4% > Other > Bakery
Slide 11: Strategy: Switchback acquisition
Strategy: Switchback acquisition Current industry mix % Performance Global Craft Beer: Market Value (US$m) Forecast 2019-2029 5 6 11 Food Sales EBITDA ROCE US$76,460.3m 12 Consumer products 2020 US$15m 2020 US$2.5m 2020 80% Increase 2019-2029 Craft brewery & beverage Paper 152,771.0 66 Other 2020 20
Slide 12: Strategy: Covid-19 review
Strategy: Covid-19 review > Prioritising protecting the health and wellbeing of our employees and their families with social distancing, use of PPE and enhanced facility cleaning > Pivot to a fast recovery plan which included the launch of a new website, virtual exhibition, and offering newly develo
Slide 13: Strategy: Case study Covid-19 test kit
Strategy: Case study Covid-19 test kit Providing a solution to support the battle against Covid-19 The Challenge Why Mpac The Solution The Benefits • A blue-chip contract manufacturer required • Mpac offers modularity, connectivity and • Integration of customer process by • Flexibility and a future
Slide 14: Sustainability vision
Sustainability vision Like our manufacturing ecosystems, we want to Purpose statement protect the wider ecosystems in which we all live in. “To create automation ecosystems that enhance manufacturing to help businesses So, we build efficient machines with unstoppable to adapt and grow. Advancing the
Slide 15: Financial review: Will Wilkins, Group FD
Financial review: Will Wilkins, Group FD “Our consistent aim is to be a customer focused, responsive and flexible Group, achieved through organisational excellence, underpinned by a global supply chain and supported by a single business model, ‘One Mpac’.” Mpac Group plc 2020 Full Year Results 15
Slide 16: Financial review: 2020 full year highlights
Financial review: 2020 full year highlights OE Service Underlying Gross OE revenue (£m) Service revenue (£m) revenue revenue operating profit profit 90 25.0 £64.1m £19.6m £6.5m 29.0% 19.4 19.6 69.4 20.0 70 64.1 > Strong H2 order intake contributing to FY order intake of 15.0 12.7 13.0 12.1 £83.9m (2
Slide 17: Financial review: Group Income Statement
Financial review: Group Income Statement For the year to 31 December 2020 2020 2019 Change (£m) (£m) > 20% H2 OE revenue growth v H2 2019 after Covid-19 Revenue 83.7 88.8 -5.7% impacted H1 – Original Equipment 64.1 69.4 -7.6% > FY Service revenue growth over 2019 despite constraints on – Services 19
Slide 18: Financial review: Cash bridge and working capital
Financial review: 2020 full year Cash bridge and working capital Financial bridge on net cash (£m) Working capital Inventories +£0.2 m OE projects in stock Trade debtors -£0.6m General trading levels Trade creditors / Contract Flush through of 2019 orders +£7.8m assets/liabilities to 2020 delivery P
Slide 19: 2020 Pension scheme
2020 Pension scheme UK Pension Scheme – IAS19 surplus UK scheme (£m) UK Pension Scheme > Accounting surplus £14.0m (2019: £20.4m) 450.0 450.0 > Actuarial deficit reduced from £70m to £35m after 2018 triannual update 400.0 400.0 > Next valuation as of 30 June 2021 to be concluded by mid 2022 > Struct
Slide 20: Strategic update: Outlook
Strategic update: Outlook > Prior investment in One Mpac enabled resilient performance and flexible utilisation of resource across sites > Fast recovery plan implemented, provides framework to maximise opportunity as market confidence returns > Strong and diverse opening order book and good start to
Slide 21: Appendices
Appendices Mpac Group plc 2020 Full Year Results 21
Slide 22: Appendices: Income Statement
Appendices: Income Statement 2020 2019 > Revenue decrease of 5.7% over 2019 £m £m Sales 83.7 88.8 > Non underlying items of £3.6m include: Underlying operating profit* 6.5 7.7 • Acquisition costs £0.4m • Amortisation £1.6m Non-underlying operating loss (3.6) (2.4) • Pension admin costs £0.9m Operati
Slide 23: Appendices: Segmental information
Appendices: Segmental information 2020 2019 Original Equipment (‘OE’) £m £m > Strong OE revenue in Americas after 100% increase in 2019 Sales > EMEA benefited from full year of Lambert Original equipment Americas 36.2 45.8 > APAC region was first to be impacted by Covid-19 plus EMEA 23.7 17.6 concen
Slide 24: Appendices: Cash flows
Appendices: Cash flows Dec 2020 Dec 2019 > Cash flows from operating activities in 2020 include: £m £m • £7.5m working capital decrease Cash flows from operating activities 11.2 5.1 • £3.0m of pension payments Cash flows from investing activities (13.1) (12.7) • Re-organisation costs paid of £0.9m C
Slide 25: Appendices: Working capital
Appendices: Working capital Dec 2019 - Dec 2020 restated > 2019 balances restated to reflect FRC guidance of application of £m £m IFRS 15 issued in Sept 2020 and reclassification of inventory and (Increase)/decrease in inventories 0.2 (0.2) contract balances as a result of subsequent review (Increas
Slide 26: Appendices: Balance sheet
Appendices: Balance sheet Dec 2020 Dec 2019 > Intangible assets from Switchback acquisition - £2.6m £m £m Intangible assets 27.4 16.9 > Goodwill of £13.2m (Lambert £5.7m : Switchback £7.5m) Investment property 0.8 0.8 > UK pension scheme surplus fell as a result of the excess return on plan assets (
Slide 27: Our machines are installed in global blue chips including:
Our machines are installed in global blue chips including: 27
Slide 28: We create automation ecosystems that enhance manufacturing
We create automation ecosystems that enhance manufacturing to help businesses adapt and grow 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