Slide 1: Ingenious Packaging Solutions - 2018 Half Year Results
Mpac Group plc Ingenious Packaging Solutions 2018 Half Year Results September 2018
Slide 2: Agenda
Agenda 1. Overview 2. 2018 – H1 Financial Highlights 3. Strategic Update 4. Outlook 5. Appendices Mpac Group plc 2018 Half Year Results 2
Slide 3: Overview
Overview Review Tony Steels Chief Executive Mpac Group plc 2018 Half Year Results 3
Slide 4: Overview: Half Year Summary
Overview Half Year Summary • Good progress on strategic developments • Prospects remain robust • Customer investment confidence softened • Revenue growth continues • Profit set back due to technically challenging legacy contracts • Cost saving initiatives implemented • Technical review of order book
Slide 5: What we do
Overview What we do Global leader in “Make, Pack, Test, Service” high-speed packaging solutions Make Pack Test Service Creating and enabling Provider of high speed Test and inspection Providing lifetime service new ideas that give a processing and packing technologies are and sustaining excellence,
Slide 6: Core skills and experience
Overview Core skills and experience Fill Solutions and Assembly Cartoning Case Packing web handling automation, robotics and high specification automation We are specialists in the We design robotic cells allowing End load cartoners have been We have a long history of design of precision powder the
Slide 7: Key markets
Overview Key markets Mpac has a highly skilled and experienced team dedicated to Cross industry experience and expertise means finding practical solutions to your challenges. that customers benefit from the diversity of ideas and concepts. Operating in the pharmaceutical, healthcare and food and bev
Slide 8: Global reach
Overview Global reach Service personnel Office locations (engineering, manufacturing, sales & service) Mpac Group plc 2018 Half Year Results 8
Slide 9: 2018 H1 Financial highlights
2018 H1 Financial highlights Will Wilkins Group Finance Director Mpac Group plc 2018 Half Year Results 9
Slide 10: 2018 – H1 Financial highlights
2018 – H1 Financial highlights • Increase in Group sales continuing Sales by operations of £2.8m (11%) to £28.2m 2.9 region (£m) • Order intake headwinds, but closing order book EMEA broadly in line with June 2017 13.8 Americas • Breakeven underlying PBT (2017: £0.4m) 11.5 Asia Pacific • Technical
Slide 11: 2018 – H1 Group performance
2018 – H1 Group performance Financial bridge on revenue by region Financial bridge on revenue by product category Mpac Group plc 2018 Half Year Results 11
Slide 12: 2018 – H1 Group performance
2018 – H1 Group performance Financial bridge on underlying operating profit OE GP = Original Equipment Gross Profit Mpac Group plc 2018 Half Year Results 12 Service GP = Service Gross Profit
Slide 13: 2018 – H1 Group performance
2018 – H1 Group performance Financial bridge on net cash 5 year revenue chart (continuing) 35 H1 H2 30 25 20 15 10 5 0 2014 2015 2016 2017 2018 Mpac Group plc 2018 Half Year Results 13
Slide 14: 2018 – H1 Pensions
2018 – H1 Pensions General based upon 2017 data PPF stated 66% of pensions schemes were in deficit UK Pension Scheme of schemes in deficit, the median funding level was 86% Molins scheme was 87% funded (2nd quartile) 420.0 420.0 Deficit UK Scheme 410.0 410.0 Surplus IAS19 surplus of £35.1m 400.0 Ass
Slide 15: 2018 – H1 Residential development application
2018 – H1 Residential development application • Former company sports ground and residential property location in Monks Risborough, History Bucks, in an area designated as green belt and of outstanding natural beauty (AONB) • Residential property and land valued at cost of £0.8m • Initial planning a
Slide 16: Strategic update
Overview Strategic update Tony Steels Chief Executive Mpac Group plc 2018 Half Year Results 16
Slide 17: Strategic update: Mission
Strategic update 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 opera
Slide 18: One Mpac business model
Strategic update One Mpac business model Services Services One Mpac One Mpac 0.0125 Make Pack Test Innovation Configured Solution Vision systems Discovery Machinery Lab scale µ dose Machinery Secondary Packaging Diagnostics Primary Packaging “One Off” Single entity business model – common processes
Slide 19: Addressable growth markets
Strategic update Addressable growth markets Sector Solutions Market value CAGR Drivers Pharmaceutical › Dry Powder Inhaler › First of a kind 4.1% › Test and Measurement Premiumisation Recycling $11.7 billion* Healthcare › Ostomy › Contact Lens 5.3% › Personal Care Increasing Health Income Food and ›
Slide 20: Application know-how
Strategic update Application know-how 1 Consultancy 2 Primarypackaging 3 Infeeds 4 Secondary packaging 5 Case packing 6 Palletising Knowledge based solutions to leverage across established customer base Mpac Group plc 2018 Half Year Results 20
Slide 21: Case study facial tissues
Strategic update Case study facial tissues Challenge / need Customer trialled and now launching a new “smaller box” product needing to compress tissue clip >50% Solution Mpac Innovative solution to compress the clip combined with a proven cartoner. Real synergy across the group Customer Benefits Red
Slide 22: Strategic priorities
Strategic update Strategic priorities During 2018 Future plans Going for › New case packer launched to market › Full solution selling › Re-branding completed › Product development roadmap Growth › First full solution order › Key account development › Pipeline management › Brand and product managemen
Slide 23: Outcome
Strategic update Outcome Global leader in “Make, Pack, Test, Service” high-speed packaging solutions Growth Service as Operational Improved customer a Business Efficiency performance Improved returns and Improved operational performance cash generation Target 10% annual organic growth and improved R
Slide 24: Outlook
Strategic update Outlook Outlook: • Original Equipment order pipeline remains robust • Current OE project portfolio has undergone a detailed review • Leveraging global technical experience and skills to support project execution • Foundations in place for Service growth • Prime focus is on organic g
Slide 25: Appendices
Overview Appendices Appendices Mpac Group plc 2018 Half Year Results 25
Slide 26: Income Statement
Appendices Income Statement 2018 2017 › Sales increase 11% over 2017 £m £m › Technically challenging contracts reduce underlying Sales 28.2 25.4 operating profit to breakeven Underlying operating profit* 0.0 0.4 › Underlying breakeven PBT (2017 £0.4m) Non-underlying loss (0.7) (0.4) Operating loss (
Slide 27: Segmental Information
Appendices Segmental Information 2018 2017 Original Equipment (OE) £m £m › OE sales increase 19% over 2017 level Sales › Asia sales increase 20% Original Equipment › EMEA sales increase 60% Americas 9.1 10.2 EMEA 11.7 7.3 Service Asia Pacific 2.4 2.0 Total Original Equipment 23.2 19.5 › Order intake
Slide 28: Cash Flows
Appendices Cash Flows 2018 2017 › Cash flows from operating activities in 2018 include: £m £m › £2.4m working capital increase, in line Cash flows from operating activities (3.7) (5.1) with activity Cash flows from investing activities (0.5) (0.4) Cash flows from financing activities 0.0 (1.2) › £1.
Slide 29: Working Capital
Appendices Working Capital 2018 2017 › Strong order intake in late 2017 resulted in favourable £m £m working capital movements as customer’s deposits Inventories (increase)/decrease (0.1) 0.4 were not significantly utilised on projects Receivables decrease 3.3 1.3 Payables decrease › The Group has s
Slide 30: Balance Sheet
Appendices Balance Sheet 2018 2017 › Group net cash balances increase by £26.0m over H1 £m £m 2017 to £24.9m, increase includes the H2 2017 net Intangible assets: Product Development 0.9 1.0 impact of: Investment property 0.8 0.8 › Net disposal proceeds on sale of I&TM of £25.9m Property, plant & eq
Slide 31: Pensions
2018 – H1 Pensions UK Scheme UK Pension Scheme › IAS 19 surplus £35.1m (Dec 2017: £17.6m) › Assets reduce by £4.2m to £410.4m › Liabilities reduced by £21.7m to £375.3m, with a discount rate of 2.6% 420.0 420.0 (Dec 2017: 2.3%) and a CPI inflation rate of 2.0% (Dec 2017:2.1%) Deficit › Interest rate
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