Slide 1: 2021 Full Year Results
We create packaging and automation ecosystems that enhance manufacturing to help businesses adapt and grow Mpac Group plc 2021 Full Year Results March 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 10 Mpac Cube case study and excellence on a global basis. 11 Nestle case packer case study 12 Clean en
Slide 3: Introduction: Tony Steels, CEO
Introduction: Tony Steels, CEO “Mpac has made excellent progress in 2021, delivering significant growth in order intake and a financial performance for 2021 above market expectations. The positive H1 2021 performance has continued into H2 and the Group entered 2022 with both a strong opening order b
Slide 4: Overview: 2021 full year summary
Overview: 2021 full year summary • Strong commercial and financial performance from Order intake £117.9m resilient end markets • Despite pandemic, Americas region continues to perform well alongside an improving outlook in EMEA (2020: £83.9m) • Mpac USA headquarters and showcase facility opened Reve
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 Full Year 2021 Sales by Sector (%) Mississauga Wijchen (CA) (NL) 100 staff 151 staff Food 4,500 m2 4,700 m
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 CAGR Drivers > Diabetes testing > Contact lens Premiumisation Recycling > Personal care Healthcare and Pharmaceutical > Other > Dry powder inhaler $10.7bn* 5% > Point of use drug delivery > Device assembly Increasing Health income >
Slide 9: Strategy: Goals and priorities 2021 update
Strategy: Goals and priorities 2021 update 2021 progress Looking ahead Innovation Americas EMEA Americas Business development in Clean Cross selling of Switchback and Switchback product Leveraging Group Going for Energy sector Langen product lines launch and extending commercial showcase facility gr
Slide 10: Strategy: Mpac Cube
Strategy: Mpac Cube We’ve folded the many sides of our automation support together into one convenient service offer – Mpac Cube. Mpac Cube is our online service engine that will propel our clients towards their production goals through connectivity, productivity and sustainability. Advanced Enginee
Slide 11: Strategy: Case study Nestlé
Strategy: Case study Nestlé Mpac were selected by Nestlé global procurement as a preferred supplier for case packer product lines for plants in all regions. The first project was for the supply of the newly ”Based on the reliable and flexible technology developed Alisio packer for a noodle packaging
Slide 12: Strategy: Case study Clean Energy
Strategy: Case study Clean Energy In July 2021 Mpac announced that Mpac Lambert signed a contract with FREYR Battery to supply casting and unit cell assembly equipment for the battery cell production line at FREYR’s Customer Qualification Plant. The FREYR contract follows three years of cooperation
Slide 13: 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 to embracing sustainability achieve their sustainability goals. We encourage
Slide 14: Financial review: Will Wilkins, Group FD
Financial review: Will Wilkins, Group FD “In 2021 Mpac returned to growth, generating an increase in margin and profitability compared to 2020, underpinned by our approach to operate as a single entity business model, ‘One Mpac’, and by leveraging the prior investment in business processes and syste
Slide 15: Financial review: 2021 full year highlights
Financial review: 2021 full year highlights OE Service Underlying Gross OE revenue (£m) Service revenue (£m) revenue revenue operating profit profit 90 25.0 £74.1m £20.2m £8.8m 30.6% 74.1 20.2 19.4 19.6 69.4 20.0 70 64.1 > Strong growth in order intake growth of 41% to £117.9m 15.0 13.0 12.1 (2020:
Slide 16: Financial review: Group Income Statement
Financial review: Group Income Statement For the year to 31 December 2021 2021 2020 Change (£m) (£m) > OE revenue growth driven by the Americas region – both Revenue 94.3 83.7 12.7% organic and with the full year effect of Switchback – Original Equipment 74.1 64.1 15.6% > Encouraging Service revenue
Slide 17: Financial review: Balance Sheet
Financial review: Balance Sheet For the year to 31 December 2021 2021 2020 Change (£m) (£m) > Reduction in tangible fixed assets relates primarily to the Intangible Assets 25.3 27.4 -8% sale of the Coventry site, sold in July 2021 for £1.7m, net of costs Tangible fixed assets, including leased items
Slide 18: Financial review: 2021 full year cash bridge and working capital
Financial review: 2021 full year cash bridge and working capital Financial bridge on net cash (£m) Working capital Inventories -£2.2m Project lead time management Trade debtors +£1.0m General trading levels Trade creditors /Contract Timing of project milestone -£6.2m liabilities/Customer deposits pa
Slide 19: Strategic update: Outlook
Strategic update: Outlook > Strong and diverse opening order book provides good coverage over 2022 forecast > Completion of the FREYR battery cell development line > Further opportunities to leverage prior investment in One Mpac systems and processes to underpin financial performance > Supply chain
Slide 20: Appendices
Appendices Mpac Group plc 2021 Full Year Results 20
Slide 21: Appendices: Income Statement
Appendices: Income Statement 2021 2020 > Revenue increase of 12.7% over 2020 £m £m Sales 94.3 83.7 > Non underlying items of £0.7m include: Underlying operating profit* 8.8 6.5 • Acquisition costs £0.4m • Amortisation £1.6m Non-underlying operating loss (0.5) (3.6) • Pension admin costs £1.2m Operat
Slide 22: Appendices: Segmental information
Appendices: Segmental information 2021 2020 Original Equipment (‘OE’) £m £m > Strong OE revenue in Americas after 50% increase from 2020 Sales Original equipment > EMEA impacted by prolonged Covid related restrictions Americas 53.4 36.2 > APAC region represents concentrated of customer base EMEA 17.
Slide 23: Appendices: Cash flows
Appendices: Cash flows Dec 2021 Dec 2020 > Cash flows from operating activities in 2021 include: £m £m • £8.2m working capital increase Cash flows from operating activities 0.4 11.2 • £2.6m of pension payments Cash flows from investing activities (0.3) (13.1) • Reorganisation costs paid of £0.4m Cas
Slide 24: Appendices: Working capital
Appendices: Working capital Dec 2021 Dec 2020 > Overall change in working capital reflects the significant value of £m £m customer deposits received in late Q4 2020 which unwound in H1 (Increase)/decrease in inventories (2.2) 0.2 2021 (Increase)/decrease in contract assets (4.4) (1.7) > Generally wo
Slide 25: Appendices: Balance sheet
Appendices: Balance sheet Dec 2021 Dec 2020 > Goodwill of £13.2m (Lambert £5.7m : Switchback £7.5m) £m £m Intangible assets 25.3 27.4 > New Mpac US leased site recognised at £2.4m offset by disposal of excess UK site for £1.9m Investment property 0.8 0.8 > UK pension scheme surplus rose as a result
Slide 26: 2021 Pension scheme
2021 Pension scheme UK Pension Scheme – IAS19 surplus (£m) UK Pension Scheme UK scheme 450.0 > Accounting surplus £35.7m (2020: £14.0m) > Strong performance of growth assets and increase in market 400.0 discount rate drove surplus growth > Triennial valuation under way; to be concluded by Q3 2022 >
Slide 27: Our machines are installed in global blue chips including:
Our machines are installed in global blue chips including: 27
Slide 28: 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