Slide 1: 2021 Half Year Results
We create automation ecosystems that enhance manufacturing to help businesses adapt and grow Mpac Group plc 2021 Half Year Results September 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 New US facility case study excellence on a global basis. 04 Freyr case study 05 Sustainability
Slide 3: Introduction: Tony Steels, CEO
Introduction: Tony Steels, CEO “I am really pleased with the performance of the business in the first half of 2021. The strong momentum from H2 2020 has carried forward to 2021 with Original Equipment order intake up significantly. Good progress with the implementation of our strategic objectives pr
Slide 4: Overview: 2021 half year summary
Overview: 2021 half year summary > Customer focus and agility of all colleagues underpinned Order intake performance > Strong momentum on order intake, order book led by Americas region, improving outlook in EMEA £51.7m (H1 2020: £30.5m) > Mpac Switchback performance ahead of expectations > New faci
Slide 5: Overview: Operations and sectors
Overview: Operations and sectors 2 7 >10,000 4 ~180 80 Innovation Customer Machines in Global Manufacturing Global Engineers Countries Centers Service Hubs service Facilities & Designers served Half Year 2021 Sales by Sector (%) Mississauga Wijchen (CA) (NL) 91 staff 145 staff Food 4,500 m2 4,700 m2
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: 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 8: 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 $6.7bn* > Contact lens income Healthcare > Personal care 4% > Other > Bakery
Slide 9: Strategic priorities
Strategic priorities H1 2021 progress Looking ahead Switchback Building Prospects Switchback Product Lines New markets Momentum in realising Market led approach Product launch in EMEA and Build global approach to Strategic partnership in Going for commercial synergies generated new customers new sho
Slide 10: Strategy case study: New showcase and service facility for US customers
Strategy case study: New showcase and service facility for US customers Leveraging prior investment in Switchback and providing Mpac’s full offering and enhanced local service Benefits of the new showcase facility Full capability Enhanced local Inspiring team showcase service environment • Strategic
Slide 11: Strategy case study: FREYR Battery and the drive to net zero
Strategy case study: FREYR Battery and the drive to net zero Protecting our planet is fast becoming a priority for everyone with commitments to get to net zero faster The Energy Challenge Mpac: Opportunity Mpac: Added Value Outcomes • To develop high volumes of energy • Long term engagement to devel
Slide 12: Sustainability vision
Sustainability vision Like our manufacturing ecosystems, we want to Helping businesses grow globally while embracing protect the wider ecosystems in which we all live sustainability in. > Next-generation manufacturing for the next generation So, we build efficient machines with unstoppable > Buildin
Slide 13: Financial review: Will Wilkins, Group FD
Financial review: Will Wilkins, Group FD “The return to growth and strong increase in margin and profitability in H1 was underpinned by our approach to operate as a single entity business model, ‘One Mpac’, and by leveraging the prior investment in business processes and systems.” Mpac Group plc 202
Slide 14: Financial review: 2021 half year highlights
Financial review: 2021 half year highlights OE Service Underlying Gross HY OE revenue (£m) HY Service revenue (£m) revenue revenue operating profit profit 50 14.0 £34.0m £10.2m £4.8m 33.5% 12.0 11.8 38.2 9.9 10.2 37.0 9.7 10.0 34.0 > Strong H1 order intake of £51.7m (H1 2020: £30.5m) 31.2 8.0 7.6 30
Slide 15: Financial review: Group Income Statement
Financial review: Group Income Statement For the six months to 30 June 2021 H1 2021 H1 2020 Change (£m) (£m) > 25.5% OE revenue growth v H1 2020 Revenue 44.2 36.8 +20.1% > Service revenue growth over 2020 despite continuing – Original Equipment 34.0 27.1 +25.5% constraints on I&C and field service r
Slide 16: Financial review: Balance Sheet
Financial review: Balance Sheet For the six months to 30 June 2021 H1 2021 YE 2020 Change (£m) (£m) > Tangible fixed assets includes the Coventry site at £1.4m, Intangible Assets 26.3 27.4 -4% sold in July 2021 for £1.7m, net of costs Tangible fixed assets, including leased items 9.2 9.9 -7% > Net p
Slide 17: Financial review: Cash bridge and working capital
Financial review: 2021 half year Cash bridge and working capital Financial bridge on net cash (£m) Cash flow Stocking of parts and materials Inventories -£1.4 m to support H2 project schedule Project stage of completion and Debtors +£5.0m pro-active cash management Timing of orders and project Credi
Slide 18: Strategic update: Outlook
Strategic update: Outlook > Prior investment in One Mpac generating increased operating leverage and improved return on sales > Strong and diverse opening order book and good start to Q3 2021 provides excellent coverage of 2021 revenue > Project prospects pipeline continues to build > Development of
Slide 19: Appendices
Appendices Mpac Group plc 2021 Half Year Results 19
Slide 20: Appendices: Income Statement
Appendices: Income Statement H1 2021 H1 2020 > Revenue increase of 20% over 2020 £m £m Sales 44.2 36.8 > Non underlying items of £1.9m include: Underlying operating profit* 4.8 2.6 • Amortisation £0.9m • Pension admin costs £0.6m Non-underlying operating loss (1.9) (1.3) • Reorganisation costs £0.2m
Slide 21: Appendices: Segmental information
Appendices: Segmental information H1 2021 H1 2020 Original Equipment (‘OE’) £m £m > Strong OE revenue in Americas driven by conversion of the strong Sales opening order book and Switchback acquisition in H2 2020 Original equipment > EMEA impacted by timing of customer investment cycles Americas 24.7
Slide 22: Appendices: Cash flows
Appendices: Cash flows H1 2021 H1 2020 > Cash flows from operating activities in 2021 include: £m £m • £7.2m working capital increase Cash flows from operating activities (3.3) 5.6 • £1.6m of pension payments Cash flows from investing activities (0.4) (0.8) • Reorganisation costs paid of £0.3m Cash
Slide 23: Appendices: Working capital
Appendices: Working capital H1 2021 H1 2020 > Working capital movements driven by the timing of contracts £m £m orders, the conversion of billing milestones to cash and revenue (Increase)/decrease in inventories (1.4) 2.8 generation Increase in contract assets - (5.4) > Overall increase in working c
Slide 24: Appendices: Pension scheme
Appendices: Pension scheme UK Pension Scheme – IAS19 surplus UK scheme (£m) UK Pension Scheme > Accounting surplus £26.8m (31 December 2020: £14.0m) 450.0 450.0 > Actuarial valuation due at 30 June 2021, to be concluded by mid- 2022 400.0 400.0 > Company being supported by Isio through the valuation
Slide 25: Appendices: Mpac Switchback (acquired September 2020)
Appendices: Mpac Switchback (acquired September 2020) Company Overview Business overview Industry focus • Design, manufacture and sale of secondary packaging equipment, including cartoners, tray formers and case- Food & Pharma Healthcare packers, mainly into the US market Beverage • Leading position
Slide 26: Appendices: Mpac Lambert (acquired May 2019)
Appendices: Mpac Lambert (acquired May 2019) Company Overview Industry focus Business summary • Lambert provides customers with full process provision from design process consultancy to implementation of full turnkey multiple line Food & Pharma Healthcare automation systems and maintenance support B
Slide 27: Mpac Group plc contact details
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