Novus Holdings Ltd. · JSE:NVS
Novus — FY2022 Earnings Presentation
22 slides from Novus's earnings presentation, June 2022
Slide 1: Annual Financial Results Presentation for year ended 31 March 2022
• All participants will be on mute upon admission and throughout the presentation. • The presentation is being recorded and will be made available on our website. • All questions should be posted in the Q&A forum, and will be addressed at the end. • Only questions posted on this platform will be add
Slide 2: Contents
Contents Annual Financial Results Presentation for year ended 31 March 2022 2
Slide 3: Annual Financial Results Presentation for year ended 31 March 2022
Annual Financial Results Presentation for year ended 31 March 2022 3
Slide 4: Results summary
01 E X E C U T I V E O V E R V I E W Results summary Revenue Operating (Loss)/Profit (Excluding “other gains/(losses)”) Headline Earnings per share Free cash flow Annual Financial Results Presentation for year ended 31 March 2022 4
Slide 5: Financial section divider
Annual Financial Results Presentation for year ended 31 March 2022 5
Slide 6: Group income statement key features
02 F I N A N C I A L R E V I E W Group income statement key features 2022 2021 Revenue R3 014m R2 838m (6,2%) ▲ Gross profit R734m R540m (35,8%) ▲ Gross margin 24,4% 19,0% 1,4% ▲ Overheads R541m R560m 3,4% ▼ Operating profit/(loss) * R193m -R20m ▲ Operating margin* 6,4% -0,7% ▲ Headline earnings per
Slide 7: Cash position analysis
02 F I N A N C I A L R E V I E W Cash position analysis Year ended Year ended 31 Mar 2022 31 Mar 2021 Cash inflows (R’m) (R’m) • Proceeds on the sale of surplus plant and Cash generated from operations machinery, and a building 289 89 (excluding working capital) at Novus Print amounting to R110m. Wo
Slide 8: Cash flow movements
R’m -100 0 100 200 300 400 500 600 700 800 Cash balance at 443 01 April 2021 Operating profit 193 Depreciation 88 Working capital -11 Annual Financial Results Presentation for year ended 31 March 2022 Cash flow movements Taxation paid -51 Acquisition of PPE -25 and intangibles Proceeds on 110 dispos
Slide 9: Working capital
02 F I N A N C I A L R E V I E W Working capital R’m 1 200 831 1 000 649 527 800 476 1 009 626 600 537 701 554 407 400 336 437 446 200 448 485 310 - Sept 2020 March 2021 Sept 2021 March 2022 Debtors Creditors Inventory Net working capital Annual Financial Results Presentation for year ended 31 March
Slide 10: Capex overview [EXCL. INTANGIBLES]
02 F I N A N C I A L R E V I E W Capex overview [EXCL. INTANGIBLES] 120 CAPEX • In line with the Group’s 100 rationalisation of assets and reduction in Print capacity, maintenance spend is expected to remain modest 80 52 and reduced in the Print segment. 29 Expansion R’m 60 Maintenance 40 55 9 51 4
Slide 11: Operating section divider
Annual Financial Results Presentation for year ended 31 March 2022
Slide 12: Group overview
03 O P E R A T I O N A L R E V I E W Group overview R’m FY19 FY20 FY21 FY22 • Printing revenue contributed 78,7% (2021: REVENUE 74,8%) to total revenue. 5 000 45% • Overall print volumes up 7.1% (2021: down 4 500 4 332 35,8%). 4 112 40% • 2021 included Tissue revenue of R134m. 4 000 35% • Gross prof
Slide 13: Print segment
03 O P E R A T I O N A L R E V I E W Print segment Commentary R’m FY19 FY20 FY21 FY22 • Revenue increased by 11,7% with overall REVENUE tonnages up 7,1%. Retail Inserts & 4 000 45% Catalogues and the Books & Directories categories improved whilst Magazines and 3 500 3 349 40% 3 168 Newspapers contin
Slide 14: Packaging segment
03 O P E R A T I O N A L R E V I E W Packaging segment Commentary *Includes ITB Flexible Packaging Solutions and Novus Labels. R’m FY19 FY20 FY21 FY22 • ITB revenue was up 9,4% due to increased REVENUE demand. 45% • Novus Labels revenue improved by 9,7% 2 400 despite the exit of a key customer contr
Slide 15: Tissue segment
03 O P E R A T I O N A L R E V I E W Tissue segment Commentary R’m FY19 FY20 FY21 FY22 • The Tissue division contribution to Group REVENUE revenue related to the rental income from the Group’s associate Mthembu Paper Mill. 80% 2 400 78,4% 75% • The tissue business was disposed in FY21. 70% 65% 60% 1
Slide 16: Revenue contribution
03 O P E R A T I O N A L R E V I E W Revenue contribution SHARE OF VOLUME SHARE OF GROUP GROUP GROWTH/ CATEGORY REVENUE 2022 REVENUE 2021 (DECLINE) Print product category Magazines 5,5% 7,7% -28,4% Tissue 0,2% Newspapers 8,8% 9,1% -2,3% Packaging Retail Inserts & Catalogues 32,1% 26,5% 24,6% 21,1% B
Slide 17: Novus Holdings 2019 Interim Results
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 18: Outlook and segmental focus
04 O U T L O O K Outlook and segmental focus Print Packaging Tissue • The streamlined structure of Print • Novus Labels is expected to start to • The Group currently has a 49% makes it fit for purpose. improve profitability with its reduced investment in Mthembu Paper Mill • The successful retention
Slide 19: Group outlook
04 O U T L O O K Group outlook Coming to an end of realising surplus asset sales. Continue to adjust our efficiencies going forward. Flattened structure to suit the smaller business size. Awarded DBE contract. New deployment of capital. Annual Financial Results Presentation for year ended 31 March 2
Slide 20: Annual Financial Results Presentation for year ended 31 March 2022
Annual Financial Results Presentation for year ended 31 March 2022 20
Slide 21: Annual Financial Results Presentation for year ended 31 March 2022
Annual Financial Results Presentation for year ended 31 March 2022 21
Slide 22: Investor Relations Contacts
Investor Relations Contacts +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS