Novem Group SA · XETR:NVM
Novem Group SA — HY 2021/22 Earnings Presentation
25 slides from Novem Group SA's earnings presentation, Dec 16, 2021
Slide 1: HY 2021/22 Results
16 December 2021 HY 2021/22 Results
Slide 2: Overview
1 OVERVIEW
Slide 3: Q2 2021/22 key events
Q2 2021/22 key events Novem succeeded in acquiring a luxury SUV platform from Chinese premium customer Hongqi (FAW) Sales representation opened in Japan to be able to deal with local customer base more effectively Novem was able to take over a significant part of the aluminium interior trim bu
Slide 4: Q2 2021/22 financial highlights
Q2 2021/22 financial highlights Q2 Sep 2020/21 Q2 Sep 2021/22 Revenue (€m) 170.4 139.2 Adj. EBIT (€m) 24.0 12.4 Adj. EBIT margin (%) 14.1% 8.9% Free cash flow (€m) 45.2 0.9 Cash conversion (%) 88.9% 81.9% Net leverage (x Adj. EBITDA) 2.8x 1.6x © Novem Group Public 16 December 2021 Page 4
Slide 5: HY 2021/22 financial highlights
HY 2021/22 financial highlights HY Sep 2020/21 HY Sep 2021/22 Revenue (€m) 256.3 295.3 Adj. EBIT (€m) 22.9 38.2 Adj. EBIT margin (%) 8.9% 12.9% Free cash flow (€m) 31.7 11.0 Cash conversion (%) 78.7% 89.4% Net leverage (x Adj. EBITDA) 2.8x 1.6x © Novem Group Public 16 December 2021 Page 5
Slide 6: Group Results
Fe SS CSS eS a ee 2 GROUP RESULTS
Slide 7: Revenue
Revenue Revenue (€m) Highlights -18.3% In Q2 2021/22, overall revenue of €139.2m down by -18.3% in 170.4 26.4 comparison to prior year (PY) 139.2 13.3 Revenue Series declined by -12.6% to €125.9m due to reduced production volumes of OEMs 144.0 125.9 While LMC market data suggested a reduction
Slide 8: Adj. EBIT
Adj. EBIT Adj. EBIT (€m) Highlights -48.4% Adj. EBIT in Q2 2021/22 decreased by €-11.6m which resulted in a margin of 8.9% for the period under review 24.0 Revenue as main driver for the reduced Adj. EBIT in Q2 2021/22 compared to last year 12.4 Volatile call-offs at short notice led to ineffi
Slide 9: Free cash flow
Free cash flow Free cash flow (€m) Highlights -98.1% Free cash flow came down significantly by €-44.3m from last year 45.2 and resulted in €0.9m in Q2 2021/22 Apart from the lower profit for the period, the decline was largely driven by the deliberate build-up of stock to ensure the deliveries t
Slide 10: Capital expenditure
Capital expenditure Capital expenditure (€m) Highlights +3.9% Compared to last year, capital expenditure slightly increased in Q2 2021/22 by €+0.1m to €3.6m 3.5 3.6 In view of the lower revenue, the underlying capex ratio rose by +0.5pp to 2.6% (2.1% PY) Given the challenging trading condition
Slide 11: Total working capital
Total working capital Total working capital (€m) Highlights +8.2% As of 30 September 2021, total working capital stood at €139.3m 128.7 139.3 which marked an increase of +8.2% y/y 12.7 15.9 60.7 84.6 Deviation of €-10.6m compared to PY resulted from higher tooling 48.1 26.0 net (€-23.9m), higher
Slide 12: Capital structure
Capital structure Net financial debt (€m) Highlights 2.8x 1.6x 300.7 As of 30 September 2021, both gross financial debt and cash showed a significant decrease compared to 30 September 2020 210.3 511.5 On 26 July 2021 subsequent to the IPO, Novem fully repaid the 281.7 €400.0m bond including accr
Slide 13: Results by Operating Segments
3 RESULTS BY OPERATING SEGMENTS
Slide 14: Revenue by operating segments
Revenue by operating segments Revenue by region (€m) Highlights -18.3% 170.4 Revenue decreased in all regions (in total by -18.3% or €-31.2m), 22.4 139.2 to the largest extent in Europe (€-20.5m y/y) 14.8 59.8 Amongst others, lower revenue particularly with Daimler platforms 56.8 (E-class and C-
Slide 15: Adj. EBIT by operating segments
Adj. EBIT by operating segments Adj. EBIT by region (€m) Highlights -48.4% In line with the revenue trend, Adj. EBIT decreased in all regions 24.0 with the biggest impact in Asia -57.8% y/y 7.0 As a consequence, Adj. EBIT margin decreased strongly, starting 12.4 10.1 with Europe 5.8% (7.8% PY),
Slide 16: Questions & Answers
4 QUESTIONS & ANSWERS
Slide 17: Appendix
5 APPENDIX
Slide 18: Profit and loss statement
Profit and loss statement Profit and loss statement (€m) Q2 2020/21 Q2 2021/22 HY 2020/21 HY 2021/22 Revenue 170.4 139.2 256.3 295.3 Increase or decrease in finished goods and work in process -15.6 3.2 -12.2 12.2 Total operating performance 154.8 142.4 244.1 307.5 Other operating income 2.6 6.8 3.2
Slide 19: Balance sheet
Balance sheet Balance sheet (€m) 30 Sep 2020 30 Sep 2021 30 Sep 2020 30 Sep 2021 Total equity -532.2 19.9 Intangible assets 3.3 3.4 Pensions and similiar obligations 32.0 36.4 Property, plant and equipment 190.3 179.9 Tax liabilities 0.0 0.0 Trade receivables 49.6 45.1 Other provisions 8.1 5.1 Other
Slide 20: Cash flow statement
Cash flow statement Cash flow statement (€m) Q2 2020/21 Q2 2021/22 HY 2020/21 HY 2021/22 Profit for the period 6.5 -2.4 -12.9 5.8 Income tax expense (+)/income (-) 7.2 3.2 14.2 9.5 Financial result (+)/(-) net 12.1 7.8 24.0 19.8 Depreciation, amortization and impairment 7.6 7.7 15.2 15.3 Other non-c
Slide 21: Cash flow statement (cont'd)
Cash flow statement (cont’d) Cash flow statement (€m) Q2 2020/21 Q2 2021/22 HY 2020/21 HY 2021/22 Cash received (+) from disposals of intangible assets 0.1 0.1 Cash received (+) from disposals of property, plant and equipment -0.4 -0.1 -0.4 -0.1 Cash paid (-) for investments in intangible assets -0.
Slide 22: EBIT adjustments
EBIT adjustments EBIT adjustments (€m) Q2 2020/21 Q2 2021/22 HY 2020/21 HY 2021/22 Revenue 170.4 139.2 256.3 295.3 EBIT 23.8 9.8 22.6 35.0 EBIT margin 14.0% 7.1% 8.8% 11.9% Restructuring Exceptional ramp-up costs 0.000000 0.000000 0.000000 0.000000 Material quality claims -0.1 -0.1 Single impairment
Slide 23: Definitions and basis of preparation of the financial information
Definitions and basis of preparation of the financial information Adj. EBIT is defined as EBIT as adjusted for certain adjustments which management considers to be non-recurring in nature, as Novem believes such items are not reflective of the ongoing performance of the business Adj. EBITDA is d
Slide 24: Further information and disclaimer
Further information and disclaimer Date of publication 16 December 2021 Contact investor.relations@novem.com | All information is constantly updated and available. Please visit the Investor Relations Portal on the Company website: https://ir.novem.com/websites/novem/English/1/investor-relations.html
Slide 25: Novem Group S.A.
Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg E-Mail: investor.relations@novem.com www.novem.com