Mpac Group Plc · LSE:MPAC
Mpac — H1 2022 Earnings Presentation
29 slides from Mpac's earnings presentation, September 2022
Slide 1: Mpac Group plc 2022 Half Year Results
We create packaging and automation ecosystems that enhance manufacturing to help businesses adapt and grow Mpac Group plc 2022 Half Year Results September 2022
Slide 2: Introduction and Agenda
Introduction Agenda Mpac Group plc is an international company 04 Overview listed on the London Stock Exchange, with a 07 Strategy and business model long and proud history of delivering innovation 11 Case study: Innovation and excellence on a global basis. 12 Case study: New customer 13 Case study:
Slide 3: Introduction: Tony Steels, CEO
Introduction: Tony Steels, CEO “Delivering on our customer commitments has driven the first half performance, dealing with the short-term operational challenges of increasing inflation, supply chain disruption and softening of customer confidence due to geopolitical uncertainty. This is being manage
Slide 4: Overview: 2022 half year summary
Overview: 2022 half year summary Progress made with FREYR Battery (“FREYR”) Order intake £32.8m towards exclusive supply of battery cell automation lines Good acquisition of new customers in healthcare (2021: £51.7m) and plant-based food Revenue £50.6m Comprehensive effort to deliver on existi
Slide 5: Overview: One Mpac
Overview: One Mpac Whole Line Whole Line, Whole Life, Whole Planet Using limitless ingenuity to align global Mpac's offer to customers has been shaped by delivering against these three pillars. manufacturing The result is ‘Automation Ecosystems’ > Global whole-line integration > Streamlining process
Slide 6: Overview: Ingenuity without limits
Overview: Ingenuity without limits 3 7 10,000 4 180 80 Innovation Customer Machines in Global Manufacturing Global Engineers Countries Centers Service Hubs service Facilities & Designers served Half Year 2022 Sales by Sector (%) Mississauga Wijchen (CA) (NL) 98 staff 151 staff 4,500 m2 4,700 m2 8% C
Slide 7: 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. Optimise Consult Ensure equipment stays Early customer engagement and up-to-d
Slide 8: Strategy: Addressable growth markets
Strategy: Addressable growth markets Sector Solutions Market value/size CAGR Drivers > Diabetes testing Premiumisation Recycling $10.7bn > Contact lens Healthcare > Personal care * 5% > Point of use drug delivery > Device assembly Increasing income Health > Bakery Food and Beverage > Chilled and fro
Slide 9: Strategy: Goals and priorities 2022 update
Strategy: Goals and priorities 2022 update H1 2022 progress Looking ahead Innovation EMEA Business development in Clean Energy sector Switchback product launch and extending Going for growth commercial footprint To grow faster than the market Showpad: an integrated and unified Mpac sales portal Digi
Slide 10: Strategy: Supply chain
Strategy: Supply chain Challenge Impact Mitigations > Sourcing of critical customer specified > Chip based component shortages resulted > Stocking orders, close vendor management electrical components subject to in supply disruption and inefficiencies and leverage ERP significant delays > Appointmen
Slide 11: Strategy case study: Innovation
Strategy case study: Innovation Mpac Cube Tray former Clean Energy Technology: Technology: Technology is based on our ‘Rotary Feeder’ using one circular motion making 200 circular motions a minute Scalable solution for battery cell automation High accuracy and process control leads to increased yiel
Slide 12: Strategy case study: Tattooed Chef
Strategy case study: Tattooed Chef Mpac were selected by Tattooed Chef, a leading “In our tireless search for a plant-based food company offering a broad portfolio global automation partner of innovative plant-based food products that include ready-to-cook meals bowls and acai and smoothie that met
Slide 13: Strategy case study: Market Opportunity – Clean Energy
Strategy case study: Market Opportunity – Clean Energy The Energy Challenge Global battery capacity forecast by supplier type (yield adjusted) (TWh) To develop high volumes of energy storage – best served through lithium-ion battery technology Freyr: Long-term opportunity and plans Mpac opportunity
Slide 14: Sustainability vision
Sustainability vision Our end-to-end capabilities help environmentally focused businesses meet their ESG targets and our evolving Helping businesses grow globally while innovative solutions offer our customers opportunities embracing sustainability to achieve their sustainability goals. We encourage
Slide 15: Financial review: Will Wilkins, Group FD
Financial review: Will Wilkins, Group FD “Supply chain disruption, caused primarily by reduced availability of key electronic components, impacted both operational efficiency and working capital. Underpinned by the ‘One Mpac’ business model and utilising the prior investment in business systems, we
Slide 16: Financial review: 2022 half year highlights
Financial review: 2022 half year highlights OE Service Underlying Gross HY OE revenue (£m) HY Service revenue (£m) revenue revenue operating profit profit 50.0 12.0 £39.8m £10.8m £1.2m 21.1% 40.1 39.8 37.0 11.0 10.8 34.0 > Order intake of £32.8m (H1 2021: £51.8m) resulting in a 10.2 10.0 9.9 closing
Slide 17: Financial review: Group Income Statement
Financial review: Group Income Statement For the six months to 30 June 2022 H1 2022 H1 2021 Change (£m) (£m) > OE revenue growth driven by the EMEA region – including Revenue 50.6 44.2 14.5% ongoing developments in clean energy storage sector – Original Equipment 39.8 34.0 17.1% > Encouraging Servic
Slide 18: Financial review: Balance Sheet
Financial review: Balance Sheet For the six months to 30 June 2022 H1 2022 YE 2021 Change (£m) (£m) > Increase in tangible fixed assets relates primarily to additions of rental assets (£0.2m) & IT hardware (£0.3m) offset by Intangible Assets 25.4 25.3 0% depreciation charged for the period Tangible
Slide 19: Financial review: 2022 half year cash bridge and working capital
Financial review: 2022 half year cash bridge and working capital Financial bridge on net cash (£m) Working capital Inventories -£0.5m Project lead time management Timing of billings and lower H1 Trade debtors +£6.1m 2022 order intake Increase in balances associated Contract assets -£4.7m with projec
Slide 20: Strategic update: Outlook
Strategic update: Outlook > Strong and diverse opening book provides good coverage over H2 2022 forecast revenue > Shipment of the FREYR battery cell development line > Build on Mpac product line for Clean Energy sector > Strategic initiatives of leveraging wider product portfolio across all regions
Slide 21: Appendices
Appendices Mpac Group plc 2022 Half Year Results 21
Slide 22: Appendices: Income Statement
Appendices: Income Statement H1 2021 H1 2020 > Revenue increase of 14.5% over 2021 £m £m Sales 50.6 44.2 > Non underlying items of £1.8m include: Underlying operating profit* 1.2 4.8 • Amortisation £0.8m • Pension admin costs £0.7m Non-underlying operating loss (1.8) (1.9) • Acquisition & Reorg cost
Slide 23: Appendices: Segmental information
Appendices: Segmental information HY 2022 HY 2021 £m £m Original Equipment (‘OE’) Sales > Strong OE revenue in EMEA after 55% increase from 2021 Original equipment > APAC region represents concentrated customer base Americas 25.0 24.7 EMEA 12.9 8.3 Services Asia Pacific 1.9 1.0 > Increasingly divers
Slide 24: Appendices: Cash flows
Appendices: Cash flows HY 2022 HY 2021 £m £m > Cash flows from operating activities in 2022 include: Cash flows from operating activities (3.3) (3.1) • £5.1m working capital increase • £1.1m of pension payments Cash flows from investing activities (0.6) (0.4) Cash flows from financing activities (0.
Slide 25: Appendices: Working capital
Appendices: Working capital HY 2022 HY 2021 £m £m > Increase in working capital reflects the application of customer deposits into project balances and the build up of contract assets Increase in inventories (0.5) (1.4) and inventory as project completion is dependent upon receipt of delayed electri
Slide 26: Appendices: Balance sheet
Appendices: Balance sheet HY 2022 YE 2021 £m £m > Goodwill of £13.2m (Lambert £5.7m : Switchback £7.5m) Intangible assets 25.4 25.3 > Additions in PPE relate to rental assets (£0.2m) and fixtures & fittings (£0.3m) Investment property 0.8 0.8 Property, plant & equipment (including right of use) 10.0
Slide 27: 2022 Pension scheme
2022 Pension scheme UK Pension Scheme – IAS19 surplus (£m) UK scheme UK Pension Scheme 450.0 > Accounting surplus £59.7m (YE 2021: £35.7m) > Increase in market discount rate, partially offset by matching asset movements, drove surplus growth 400.0 > Triennial valuation under way; to be concluded by
Slide 28: Our machines are installed in global blue chips including:
Our machines are installed in global blue chips including: 28
Slide 29: We create automation ecosystems that enhance manufacturing
We create automation ecosystems that enhance manufacturing to help businesses adapt and grow Mpac Group plc Station Estate Station Road Tadcaster North Yorkshire LS24 9SG Tel: +44 (0)2476 421100 Email: ho@mpac-group.com mpac-group.com