Novem Group SA · XETR:NVM
Novem Group SA — FY2022/23 Earnings Presentation
25 slides from Novem Group SA's earnings presentation, Jun 1, 2023
Slide 1: FY 2022/23 Preliminary Results
01 June 2023 FY 2022/23 Preliminary Results
Slide 2: Overview
1 OVERVIEW
Slide 3: Q4 2022/23 key events
Q4 2022/23 key events ▪ Backed by strong revenue in Q4, Novem could again break the €700m mark in 2022/23 (+14.0% y/y) ▪ Adjusted for favourable foreign exchange effects, organic growth would have recorded at +8.9% ▪ Robust margin development throughout the whole year with Adj. EBIT of €81.7m (11.7%
Slide 4: Q4 2022/23 financial highlights
Q4 2022/23 financial highlights Q4 2021/22 Q4 2022/23 Revenue (€m) 159.3 174.1 Adj. EBIT (€m) 22.3 21.2 Adj. EBIT margin (%) 14.0% 12.2% Free cash flow (€m) 45.2 39.6 Net leverage (x Adj. EBITDA) 1.5x 1.1x © Novem Group Public 01 June 2023 Page 4
Slide 5: FY 2022/23 financial highlights
FY 2022/23 financial highlights FY 2021/22 FY 2022/23 Revenue (€m) 614.5 700.3 Adj. EBIT (€m) 80.9 81.7 Adj. EBIT margin (%) 13.2% 11.7% Free cash flow (€m) 65.0 84.5 Net leverage (x Adj. EBITDA) 1.5x 1.1x © Novem Group Public 01 June 2023 Page 5
Slide 6: Group Results
Fe SS CSS eS a ee 2 GROUP RESULTS
Slide 7: Revenue
Revenue Revenue (€m) Highlights +9.3% ▪ In the last quarter of 2022/23, total revenue came in at €174.1m 174.1 159.3 11.6 and outperformed PY by +9.3% 9.4 ▪ Top line growth was again supported by positive FX effects; total 149.8 162.5 revenue would have been lower by -1.7% at constant FX rates ▪ Wit
Slide 8: Adj. EBIT
Adj. EBIT Adj. EBIT (€m) Highlights -4.9% ▪ Adj. EBIT in Q4 2022/23 of €21.2m recorded on a similar level in comparison to last year 22.3 21.2 ▪ Profit margin of 12.2% improved sequentially but could not reach prior-year level at 14.0% (-1.8pp) ▪ Bottom line was again affected by higher material pri
Slide 9: Free cash flow
Free cash flow Free cash flow (€m) Highlights -12.2% ▪ Though not at the same level as previous year, Novem generated 45.2 a strong free cash flow of €39.6m in Q4 2022/23 39.6 ▪ Cash flow from operating activities (€44.4m) recorded at PY level (no deviation) with the following movements: ▪ Lower inv
Slide 10: Capital expenditure
Capital expenditure Capital expenditure (€m) Highlights -31.8% ▪ In the last quarter of 2022/23, capital expenditure of €5.7m came 8.4 in well below previous year of €8.4m 5.7 ▪ Due to the lower investments, the underlying capex ratio of 3.3% of revenue also fell behind last year’s level (5.2%) ▪ Ab
Slide 11: Total working capital
Total working capital Total working capital (€m) Highlights -2.6% ▪ As of 31 March 2023, total working capital stood at €124.0m and 127.3 124.0 was therefore below last year by -2.6% 11.9 15.3 74.4 55.5 ▪ Positive deviation of €+3.3m vs. PY attributable to lower tooling 35.2 43.7 net (€+18.9m) and l
Slide 12: Capital structure
Capital structure Net financial debt (€m) Highlights 1.5x 1.1x ▪ As of 31 March 2023, gross financial debt of €288.5m remained at 165.6 123.0 prior year’s level, while cash balances increased considerably 282.6 288.5 ▪ Lease liabilities, by definition forming part of gross financial debt, amounted t
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 +9.3% ▪ Buoyant revenue growth in Q4 2022/23 was driven by both Asia 174.1 159.3 and Americas, while Europe developed unfavourably 28.0 17.5 59.0 68.7 ▪ Asia and Americas contributed top line growth of €+10.5m and €+9.7m respectively, w
Slide 15: Adj. EBIT by operating segments
Adj. EBIT by operating segments Adj. EBIT by region (€m) Highlights -4.9% ▪ On a regional basis, Adj. EBIT improved well in Americas, while Asia moved sideways and Europe fell short of previous year 22.3 3.5 21.2 ▪ In Europe, Adj. EBIT of €1.3m (€8.9m PY) was badly affected by 4.0 inflation, lower T
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) Q4 2021/22 Q4 2022/23 FY 2021/22 FY 2022/23 Revenue 159.3 174.1 614.5 700.3 Increase or decrease in finished goods and work in process 13.0 -1.4 29.6 -7.5 Total operating performance 172.3 172.7 644.1 692.8 Other operating income 8.4 11.4 20.0
Slide 19: Balance sheet
Balance sheet Balance sheet (€m) 31 Mar 2022 31 Mar 2023 31 Mar 2022 31 Mar 2023 Total equity 67.7 107.3 Intangible assets 3.1 2.4 Pensions and similiar obligations 34.9 27.0 Property, plant and equipment 184.9 185.1 Tax liabilities 0.0 0.0 Trade receivables 47.5 46.3 Other provisions 3.2 1.4 Other
Slide 20: Cash flow statement
Cash flow statement Cash flow statement (€m) Q4 2021/22 Q4 2022/23 FY 2021/22 FY 2022/23 Profit for the period 28.6 14.2 44.0 50.0 Income tax expense (+)/income (-) 1.7 1.9 16.1 15.7 Financial result (+)/(-) net 0.9 2.9 21.7 7.1 Depreciation, amortisation and impairment (+) 8.4 8.3 31.4 32.5 Other n
Slide 21: Cash flow statement (cont'd)
Cash flow statement (cont’d) Cash flow statement (€m) Q4 2021/22 Q4 2022/23 FY 2021/22 FY 2022/23 Cash received (+) from disposals of intangible assets 0.1 0.0 Cash received (+) from disposals of property, plant and equipment -0.8 0.0 0.0 0.8 Cash paid (-) for investments in intangible assets -0.3 -
Slide 22: EBIT adjustments
EBIT adjustments EBIT adjustments (€m) Q4 2021/22 Q4 2022/23 FY 2021/22 FY 2022/23 Revenue 159.3 174.1 614.6 700.3 EBIT 21.0 21.0 72.9 80.5 EBIT margin 13.2% 12.1% 11.9% 11.5% Revenue 159.3 174.1 614.51 700.3 Restructuring Material quality claims -0.1 Onerous contracts 0.1 3.1 Covid-19 costs 0.3 0.0
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. EBIT margin
Slide 24: Further information and disclaimer
Further information and disclaimer Date of publication 01 June 2023 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 Editor Novem Group S.A. | 19, rue Edmond Reuter | 53
Slide 25: Novem Group S.A. contact details
Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg Email: investor.relations@novem.com www.novem.com