Slide 1: Mpac Group plc 2020 Half Year Results
Mpac Group plc 2020 Half Year Results September 2020
Slide 2: Agenda
Agenda 1 1. Overview 2. COVID-19 response 3. Half Year 2020 Financial Highlights 4. Strategic Update 5. Outlook 6. Appendices Mpac Group plc 2020 Half Year Results
Slide 3: Overview
Overview 2 Review Tony Steels Chief Executive
Slide 4: Overview: 2020 Half Year Summary
Overview 3 2020 Half Year Summary • Resilient performance and strong cash generation in headwind of the pandemic • Order intake 6% below prior year with several projects deferred due to COVID-19 pandemic • Order book at 30 June 2020 14% above the June 2019 order book to £45.4m (HY 2019: £39.3m) • Gr
Slide 5: What we do
Overview 4 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 6: Key Markets
Overview 5 Key Markets Mpac has a highly skilled and experienced team dedicated to Half Year 2020 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 7: Global Reach
Overview 6 Global Reach Coventry & Tadcaster (UK), 201 staff Mississauga (CA), 10,000 m2 89 staff 4,500 m2 Wijchen (NL), 164 staff 4,700 m2 Singapore, 13 staff Manufacturing Sales Customer Support • 10,000 machines in service • 80 countries served Mpac Group plc 2020 Half Year Results
Slide 8: Operational and COVID-19 Update
Operational and COVID-19 Update 7 Rapid Initial Assessment Initial Steps Pivot to Adapt • Understand issues faced • COVID secure facilities and business as normal Global Business • Address health and wellness of employees • Flexible working practices and furlough process Assessment • Maintaining bus
Slide 9: Fast Recovery and Gaining Competitive Advantage
Operational and COVID-19 Update 8 Fast Recovery and Gaining Competitive Advantage Responsiveness Refocussed Customer Focus Service R&D Marketing Strategy New website Prospect review Promote upgrades Accelerate product Significantly reduced and security development quote and lead times Pioneering vir
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: 2020 Financial Highlights
2020 10 Financial Highlights Will Wilkins Group Finance Director
Slide 12: 2020 Half Year Financial highlights
2020 Half Year 11 Financial highlights OE Revenue Service Revenue (£m) (£m) • Group order intake of £30.5m (2019: £32.6m) £27.1m HY 1 2020 27.1 £9.7m HY 1 2020 9.7 • Closing order book of £45.4m (2019: £39.9m) HY 2 2019 31.2 HY 2 2019 11.8 • Decrease in Group sales of £9.0m (20%) to HY 1 2019 38.2 H
Slide 13: Group Income Statement
Group Income Statement 12 For the six months to 30 June 2020 H1 2020 H1 2019 (£’m) (£’m) change Revenue 36.8 45.8 -20% 27.1 37.1 Key highlights: Original Equipment -27% 9.7 8.7 • Remained profitable and cash generative in Services 11% challenging period Gross profit 11.3 13.1 -14% 31% 29% • Rephasin
Slide 14: Cash bridge and working capital
2020 Half Year 13 Cash bridge and working capital Financial bridge on net cash (£m) Working capital Inventories +£0.7m Expected trend in inventory values reflecting project lifecycles Trade debtors +£5.3m Focus during HY1 on debtor management and reduction in debtor days Contract -£0.5m Expected tre
Slide 15: UK pension scheme
2020 14 UK pension scheme UK Pension Scheme – IAS19 surplus Technical Provisions (£m)* (£m) 0 450.0 Surplus -20 425.0 Liabilities -40 400.0 Assets -60 375.0 -80 350.0 -100 325.0 -120 300.0 2015 2016 2017 2018 2019 2020 -140 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 Accounting Valua
Slide 16: Strategic update
Overview 15 Strategic update Tony Steels Chief Executive
Slide 17: Agile and adapted during COVID by utilising Digital technology
Agile and adapted during COVID by utilising Digital 16 technology Challenge Results Following the outbreak of COVID 19 globally, travel for specialist Remote Support Engineers within UK are effectively onsite and able to engineers has become limited and unpredictable. This creates challenges provide
Slide 18: Addressable growth markets
Strategic update 17 Addressable growth markets Sector Solutions Market value CAGR Drivers • Ostomy 5% • Contact Lens • Personal Care $7.5bn* Healthcare Healthcare Premiumisation Recycling • Other • Dry Powder Inhaler 4% Pharmaceuticals • First of a kind • Test and Measurement $8.5bn* Pharmaceutical
Slide 19: Strategic priorities
Strategic update 18 Strategic priorities During HY1 2020 Future plans • New web-site & digital marketing platform • Full solutions offering to Healthcare customers Going • Sales Director EMEA • Fuller solutions to Food & Beverage market for Growth • Platform development launched, virtually • Custome
Slide 20: Outlook
Strategic update 19 Outlook • Mpac seeks to accelerate strategic development during period of uncertainty due to COVID-19 • Well placed to take advantage with strong pipeline of prospects in essential healthcare, food & beverage • Prior investment in One Mpac has enabled resilient performance and pl
Slide 21: Appendices
20 Appendices Mpac Group 2020 Half Year Results
Slide 22: Income Statement
Appendices 21 Income Statement H1 2020 H1 2019 • Revenue decrease of 20% over 2019 £m £m • Non underlying items of £1.3m include: Sales 36.8 45.8 • Amortisation £0.8m Underlying operating profit* 2.6 4.6 • Pension admin costs £0.5m Non-underlying operating loss (1.3) (1.8) Operating profit 1.3 2.8 •
Slide 23: Segmental Information
Appendices 22 Segmental Information H1 2020 H1 2019 £m £m Sales Original Equipment Americas 12.8 27.2 Original Equipment ‘OE’ EMEA 12.0 7.9 Asia Pacific 2.3 3.1 • OE revenue decrease of 29% 2019 Total Original Equipment 27.1 38.2 • Growth in EMEA reflecting additional Lambert revenue Service Service
Slide 24: Cash Flows
Appendices 23 Cash Flows H1 2020 H1 2019 £m £m Cash flows from operating activities 5.9 (5.1) • Cash flows from operating activities in 2020 include: Cash flows from investing activities (1.1) (12.4) • £3.5m working capital decrease Cash flows from financing activities (0.5) (0.1) • £1.1m of pension
Slide 25: Working Capital
Appendices 24 Working Capital H1 2020 H1 2019 £m £m • Decrease in working capital reflects the build phasing of long term projects alongside project cash flows and debtor Decrease / (Increase) in inventories 0.7 (3.2) management (Increase) in contract assets (5.4) (3.2) Decrease / (increase) in trad
Slide 26: Balance Sheet
Appendices 25 Balance Sheet H1 2020 H1 2019 £m £m Intangible assets 17.1 17.1 • UK and US pension scheme surplus broadly unchanged as Investment property 0.8 0.8 scheme assets outperformed increase in liabilities Property, plant & equipment (including leased) 9.8 11.3 • Main equity movements include
Slide 27: 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