Slide 1: Ingenious packaging solutions: 2018 Full Year Results
Mpac Group plc Ingenious packaging solutions 2018 Full Year Results March 2019
Slide 2: Agenda
Agenda 1 1. Overview 2. 2018 Financial Highlights 3. Strategic Update 4. Outlook 5. Appendices Mpac Group plc 2018 Results
Slide 3: Overview: Review
Overview 2 Review Tony Steels Chief Executive Mpac Group plc 2018 Results
Slide 4: 2018 Full Year Summary
Overview 3 2018 Full Year Summary • Results in line with revised market expectations • Order intake and revenue growth continues • Closing order book ahead of prior year • Underlying operating profit ahead of prior year • Successful commercial launch to the market of new products • One Mpac business
Slide 5: What we do: Global leader in high-speed packaging solutions
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: Core skills and experience
Overview 5 Core skills and experience Fill Solutions and Assembly automation, Cartoning Case Packing web handling robotics and high specification automation We are specialists in the design We design robotic cells allowing End load cartoners have been a We have a long history of of precision powder
Slide 7: Key markets
Overview 6 Key markets Mpac has a highly skilled and experienced team dedicated to finding Sales by Sector (%) practical solutions to your challenges. Operating in the pharmaceutical, healthcare and food and beverage sectors, we meet the ever-increasing demand of our customers’ manufacturing process
Slide 8: Global reach
Overview 7 Global reach Service personnel Office locations (engineering, manufacturing, sales & service) Mpac Group plc 2018 Results
Slide 9: 2018 Financial highlights
2018 8 Financial highlights Will Wilkins Group Finance Director Mpac Group plc 2018 Results
Slide 10: 2018 Full Year Financial highlights
2018 Full Year 9 Financial highlights • Increase in Group sales of £4.9m (9%) to £58.3m (2017: £53.4m) 6.7 • Strong order intake in second half of 2018 and 24.7 Sales by Region (£m) closing order book 16% above 2017 EMEA Americas • Underlying operating profit of £1.4m 26.9 Asia Pacific (2017: £1.3m)
Slide 11: Group performance: revenue bridges
2018 Full Year 10 Group performance Financial bridge on revenue by region Financial bridge on revenue by product category Mpac Group plc 2018 Results
Slide 12: Group performance: operating profit bridge
2018 Full Year 11 Group performance Financial bridge on underlying operating profit OE GP = Original Equipment Gross Profit Service GP = Service Gross Profit Mpac Group plc 2018 Results
Slide 13: Group performance: net cash bridge and 5 year revenue
2018 Full Year 12 Group performance Financial bridge on net cash 5 year revenue chart (continuing) 35 30 25 20 15 10 5 0 2014 2015 2016 2017 2018 H1 H2 Mpac Group plc 2018 Results
Slide 14: Pensions
2018 Full Year 13 Pensions UK Pension Scheme General information based upon Dec 2018 data • PPF stated 60% of pensions schemes were in deficit. • Of schemes in deficit, the median funding level was 81% £m • Molins scheme 85%-90% funded 420 Deficit 410 UK Scheme Surplus • IAS19 surplus of £20.5m 400
Slide 15: Strategic update
Overview 14 Strategic update Tony Steels Chief Executive Mpac Group plc 2018 Results
Slide 16: Mpac strategy
Mpac strategy 15 Expand customer reach Going for growth Partner of choice Make service a business Deliver life cycle R.O.I Operational efficiency One Mpac business Mpac Group plc 2018 Results
Slide 17: One Mpac Business model
One Mpac 16 Business model Create Leverage one Mpac performance • Global approach • Product innovation • Customer focus • Commercial excellence People Process Performance • Single entity • Supply chain excellence business processes • Talent development • Service opportunity • Full customer solutions
Slide 18: Addressable growth markets
Strategic update 17 Addressable growth markets Sector Solutions Market value CAGR Drivers • Dry Powder Inhaler 4.1% • First of a kind • Test and Measurement Pharmaceutical $11.7bn* 5.3% Premiumisation Recycling • Ostomy • Contact Lens • Personal Care Healthcare Increasing Health Income • Bakery 2.8%
Slide 19: Application know-how
Strategic update 18 Application know-how 2. 3. 4. 5. 6. Consultancy Primary Infeeds Secondary Case packing Palletising packaging packaging Monitoring Services Knowledge based solutions to leverage across established customer base Mpac Group plc 2018 Results
Slide 20: 2018 innovation highlights
2018 innovation highlights 19 New products launched during 2018 include: SOLANO top-load case packer Our most successful commercial product launch, the SOLANO enhances our product portfolio as a full solutions provider MAESTRO-i index cartoner Future proofing intermittent speed cartonering solutions
Slide 21: 2018 innovation highlights
2018 innovation highlights 20 Human Machine Interface Providing customers with a common technology platform to optimise efficiency and productivity VENTO-i high speed cartoner Based upon the unique high speed VENTO, the VENTO-i offers small footprint, hygienic features, great accessibility and flexi
Slide 22: Developing our Brand and making an iMpacT
21 Developing our Brand and making an iMpacT Mpac Group plc 2018 Results
Slide 23: Developing our Brand and making an iMpacT
Developing our Brand and making an iMpacT 22 Our Goals Completed roll out of Next steps rebranding across the Group 2019 • Building our brand • New website and and developing our content for HY1 people Dedicated global brand • Integration of • Developing new marketing identity marketing to product t
Slide 24: Strategic priorities
Strategic update 23 Strategic priorities During 2018 Future plans • Innovation and New Product launches • New customer acquisition Going • New customer acquisition • Sales coaching and performance management for growth • Re-branding completed • Product development roadmap • Pipeline management • Ful
Slide 25: Outcome
Strategic update 24 Outcome Global leader in “Make, Pack, Monitor, Service” high-speed packaging solutions Growth Service as Operational a Business Efficiency Improved customer Improved operational Improved returns and performance performance cash generation Target 10% organic growth and improved RO
Slide 26: Outlook
Strategic update 25 Outlook • One Mpac business model and global coverage competitive advantage • Customer prospects pipeline remains strong • Record closing order book for execution in 2019 • Innovation roadmap will deliver further new products to be commercialised in 2019 • Foundations for Service
Slide 27: Appendices
26 Appendices Mpac Group plc 2018 Results
Slide 28: Income Statement
Appendices 27 Income Statement 2018 2017 • Sales increase of 9% over 2017 £m £m • Technically challenging contracts cost impact contained Sales 58.3 53.4 • Underlying operating profit of £1.4m represent an Underlying operating profit* 1.4 1.3 increase of 8% over 2017 Non-underlying operating loss (9
Slide 29: Segmental Information
Appendices 28 Segmental Information 2018 2017 Original Equipment (OE) £m £m Sales • OE sales increase 14% over 2017 level Original Equipment • Americas sales increase 25% Americas 20.5 16.4 • EMEA sales increase 27% EMEA 20.1 15.8 Asia Pacific 5.6 8.2 Services Total Original Equipment 46.2 40.4 • Be
Slide 30: Cash Flows
Appendices 29 Cash Flows 2018 2017 • Cash flows from operating activities in 2018 include: £m £m • £1.9m working capital decrease Cash flows from operating activities (0.9) (2.1) • £3.0m of pension payments Cash flows from investing activities (1.2) 5.1 • Re-organisation costs paid of £1.0m Cash flo
Slide 31: Working Capital
Appendices 30 Working Capital 2018 2017 • Transfer of inventories to contract assets in 2018 £m £m • Tight management of working capital (Increase)/decrease in inventories 1.7 0.7 • Strong order intake growth in second half of the year (Increase)/decrease in contract assets (1.3) - with accompanying
Slide 32: Balance Sheet
Appendices 31 Balance Sheet 2018 2017 • UK pension scheme surplus increase as a result of the £m £m movement in the discount rate. (2.7% v Dec 2017: 2.6%) Intangible assets: Product Development 1.0 0.9 Investment property 0.8 0.8 • Main equity movements include the following: Property, plant & equip
Slide 33: 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