Novus Holdings Ltd. · JSE:NVS
Novus — Investor Presentation (March 2018)
18 slides from Novus's investor presentation, Mar 8, 2018
Slide 1: Business Update for Investors
BUSINESS UPDATE FOR Business Update 08 March 2018 INVESTORS Tuesday, 27 March 2018 Leaders in print and manufacturing
Slide 2: Contents
CONTENTS STRATEGY 2018 BUSINESS UPDATE CURRENT MATTERS FY19 SEGMENT FOCUS AREAS STRATEGY GOING FORWARD Presented by: Keith Vroon, Chief Executive Officer CONTENTS 1
Slide 3: Outlook & Strategy Recap
OUTLOOK & STRATEGY RECAP 1 2 3 Challenging operating Continued volume Match operational environment and decline in most traditional print capacity to market depressed economic market segments. demand through continuous outlook with currency (Media24 pricing pressure) evaluation of operations, and vo
Slide 4: 2018 Business Update
2018 BUSINESS UPDATE 3
Slide 5: 2018 Business Update
2018 BUSINESS UPDATE • Both DBE volumes completed in H1. • Magazines and newspaper volumes under continued pressure. • DBE and Directories print volume declined by 5%. CORE BUSINESS • General Books showed volume increase. • Retail season improved on print volumes reported on in H1. • Heatset and Col
Slide 6: Current Matters
CURRENT MATTERS novus holdings
Slide 7: Update on Current Matters: DBE Workbook Projects
DBE Workbook Projects UPDATE ON CURRENT MATTERS • The Workbook tender was first advertised in November 2015. • A one year extension was granted to the consortium in February 2016, due to a protracted adjudication process. • Caxton contested the extension in April 2016 and said it should be awarded o
Slide 8: Update on Current Matters: Media24 Print Agreements Renewal Process
MEDIA24 PRINT AGREEMENTS UPDATE ON CURRENT Renewal process MATTERS • Original print agreements concluded in 2000 (magazines) and 2008 (newspapers). • Management agreement revised in 2015, on listing. • Printing agreements consequently cancelled effective 31 March 2018. • Media24 commenced a RFP proc
Slide 9: Media24 Print Agreements: Contract Salient Points
MEDIA24 PRINT AGREEMENTS UPDATE ON CURRENT Contract Salient Points MATTERS • Three year term, renewable at the instance of Media24, for an additional three years. • Agreed annual pricing adjustment. • Effective date 01 April 2018. • Retention of Level 4 B-BBEE status required. • Volume allocation: •
Slide 10: Media24 Print Agreements: Impact of New Print Agreement
MEDIA24 PRINT AGREEMENTS UPDATE ON CURRENT Impact of new print agreement MATTERS • Media24 revenue has historically represented 21% of total group revenue. • On a pro-forma basis the new Media24 print agreements would reduce revenue in FY18 between R520m to R560m: • Pricing adjustment of R260m – R28
Slide 11: Media24 Print Agreements: Mitigating Initiatives
MEDIA24 PRINT AGREEMENTS UPDATE ON CURRENT Mitigating initiatives MATTERS • We are unable to give an accurate forecast of the positive impact of these initiatives at this stage. • To the extent that we can, we will do so, specifically in terms of: • Capacity reduction. • S189 retrenchments process.
Slide 12: Mitigating and Other Measures to Improve Results Outlook
MEDIA24 PRINT AGREEMENTS UPDATE ON CURRENT Mitigating and other measures to improve results outlook MATTERS Print • Assessment of operational footprint and equipment requirements: • Aggressively pursue revenue / market share opportunities. • Right-size operations and remove capacity by way of the fo
Slide 13: FY19 Focus Areas
FY19 FOCUS AREAS novus holdings
Slide 14: 2019 Segment Focus Areas
2019 SEGMENT FOCUS AREAS (to be reported on separately for FY18) PRINT TISSUE PACKAGING / LABELS • Implementation of measures to mitigate • Tissue business is currently being • Fill available production capacity. Media24 impact. assessed. • Cross-selling opportunities. • Aggressive sales and market
Slide 15: Acquisitions: Value Accretive Acquisitions Concluded
ACQUISITIONS Value accretive acquisitions concluded • Packaging focused acquisition strategy. • Targeting growth sectors with: • Robust margins. • Barriers to entry. • Accredited manufacturing standards for food grade application. • B2B selling opportunities. • Segmental acquisitions that achieve th
Slide 16: Strategy Going Forward
STRATEGY GOING FORWARD novus holdings
Slide 17: Outlook & Strategy Remains Focussed
OUTLOOK & STRATEGY REMAINS FOCUSSED 1 2 3 Challenging operating Continued volume Match operational capacity environment and depressed decline in most traditional to market demand through economic outlook with currency print market segments. continuous evaluation of volatility remains. operations, an
Slide 18: Investor Relations Contacts
Investor Relations Contacts +27 21 550 2500 Investor.Relations@novus.holdings