Novus Holdings Ltd. · JSE:NVS
Novus — H1 FY2019 Earnings Presentation
20 slides from Novus's earnings presentation, Nov 20, 2018
Slide 1: Interim Results Presentation, Six Months Ended 30 September 2018
PRESENTATION TUESDAY, 20 NOVEMBER 2018 SIX MONTHS ENDED 30 SEPTEMBER 2018 NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 2: Contents
CONTENTS PRESENTED BY Neil Birch – Chief Executive Officer Harry Todd – Chief Financial Officer NOVUS HOLDINGS | 2019 INTERIM RESULTS 2
Slide 3: Executive Overview
EXECUTIVE OVERVIEW NOVUS HOLDINGS | 2019 INTERIM RESULTS 3
Slide 4: Results Summary
RESULTS SUMMARY REVENUE R2 297 m [Sep ‘17: R2 295 m] (0%) OPERATING PROFIT (Excl. impairments, profit / (loss) on disposal of assets and loss on de- recognition of foreign subsidiary) R228 m [Sep ’17: R332 m] (31,4%) HEADLINE EARNINGS PER SHARE 49,4 c [Sep ‘17: 71,7 c] (31,2%) NOVUS HOLDINGS | 2019
Slide 5: Operational, Financial and Strategic Business Features
BUSINESS FEATURES [FOR SIX MONTH ENDED 30 SEPTEMBER 2018] OPERATIONAL • New base for Print division established post Media24 agreement. • ITB Plastics has been successfully integrated into the Group. • Labels performing well. • Tissue turnaround slow but steady improvement. • Management structure se
Slide 6: Novus Holdings 2019 Interim Results
NOVUS HOLDINGS | 2019 INTERIM RESULTS 6
Slide 7: Group Income Statement Key Features
GROUP INCOME STATEMENT KEY FEATURES [SIX MONTHS ENDED 30 SEP 2018] 2018 2017 % CHANGE (Rounded) Revenue R 2 297 m R 2 295 m 0% Gross profit R 599 m R 659 m (9,1%) ▼ Gross margin 26,1% 28,7% (2,6%) ▼ Overheads R 371 m R 327 m (13,5%) ▲ OPERATING PROFIT (Excl. impairments, profit / (loss) on disposal
Slide 8: Cash Position Analysis
CASH POSITION ANALYSIS Six months ended Six months ended 30 Sep 2018 (R’m) 30 Sep 2017 (R’m) FREE CASH FLOW Cash generated from operations -9 ▲ -37 • While EBITDA was lower, cash outflow decreased due Net property, plant, equipment and intangibles 6 ▲ -76 to timing of debtor collections notwithstand
Slide 9: Cash Flow Movements
CASH FLOW MOVEMENTS SIX MONTHS ENDED 30 SEPTEMBER 2018 250 +222 209 150 +81 +61 Trade and other payables: 122 50 -299 -42 -55 -42 -62 -160 -32 R'm -50 Inventory: (112) -119 -150 Trade and other receivables: (309) -250 -350 Cash balance Operating Depreciation Working Taxation Acquisition Proceeds Acq
Slide 10: Capex Overview (excl. Intangibles)
CAPEX OVERVIEW (EXCL. INTANGIBLES] SIX MONTHS ENDED 30 SEPTEMBER 2018 CAPEX R’ m 2015 2016 2017 2018 • Capex spend decreased by R30 m. 160 • R28 m spent on expansion for capacity enhancing projects within the 140 Packaging division. 120 100 80 104 60 83 72 40 37 20 31 12 18 9 0 Maintenance Expansion
Slide 11: Group Overview
GROUP OVERVIEW • Diversified operations (non-Print) REVENUE increased revenue contribution from SIX MONTHS ENDED 30 SEPTEMBER 7% to 20% year-on-year. • Reduced Print revenue, largely replaced by Packaging division revenue, at lower margins. R’000 • H1 sees seasonality of DBE contract FY16 FY17 FY18
Slide 12: Print Segment Commentary
PRINT SEGMENT | Commentary • Revenue contribution to the Group REVENUE reduced to 80% during the year (93% in prior year). • Revenue in the Print division declined SIX MONTHS ENDED 30 SEPTEMBER by 14,1% compared to prior year. 80% of revenue • Retail inserts and catalogue category increased by 5,5%.
Slide 13: Packaging Segment Commentary
PACKAGING SEGMENT |Commentary • Revenue contribution to the Group REVENUE SIX MONTHS ENDED 30 SEPTEMBER 15,6% of revenue increased to 15,6% during the year (4,1% in prior year). • Packaging revenue up on prior year by 283,8% mainly due to inclusion of R’000 FY16 FY17 FY18 FY19 ITB Plastics. • Labels
Slide 14: Tissue Segment Commentary
TISSUE SEGMENT | Commentary • Revenue increased by 50,3%, REVENUE SIX MONTHS ENDED 30 SEPTEMBER contributing 4,8% to Group revenue 4,8% of revenue during the period. (FY18: 3,2%). • Operating in a very competitive market with rising input costs and R’000 FY16 FY17 FY18 FY19 over capacity. • Gross pr
Slide 15: Revenue Contribution
REVENUE CONTRIBUTION Share of Share of Volume CATEGORY Group Revenue Group Revenue growth/(decline) Sep 2018 YTD Sep 2017 YTD PRINT PRODUCT CATEGORY Magazines 10,8% 15,6% 19,9% ▼ Newspapers 10,1% 18,3% 49,0% ▼ Retail Inserts & Catalogues 26,2% 24,8% 0,1% ▼ Books & Directories 32,5% 33,5% 6,1% ▼ PACK
Slide 16: Novus Holdings 2019 Interim Results
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 17: Segmental Focus
SEGMENTAL FOCUS PACKAGING TISSUE PRINT • Print is set to remain cash generative, • Short term focus on efficient • Improved market and operational despite ongoing decline in newspaper throughput with current capacity to understanding to drive sustainable and magazine circulation. drive meaningful pr
Slide 18: Group Outlook
GROUP OUTLOOK STRATEGIC FOCUS AREA STATUS NEXT 6 – 12 MONTHS Group Profitability • The Group anticipated a lower performing period and is • Further decline mitigated through improved realistic about the challenges the business faces. contribution from other products revenues. • Raw material pricing
Slide 19: Novus Holdings 2019 Interim Results
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 20: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS