Novus Holdings Ltd. · JSE:NVS
Novus — H1 2016 Earnings Presentation
17 slides from Novus's earnings presentation, Nov 6, 2015
Slide 1: Interim Financial Results
Interim Financial Results For the six months ending 30 September 2015 Presentation by CEO, Stephen van der Walt Friday, 6 November 2015
Slide 2: Content
Content Descrip)on 01 Financial highlights 02 Opera)onal review and business updates 03 Group financial posi)on 04 Strategy 05 Outlook 11
Slide 3: Key financial highlights
Key financial highlights 31,4% 16.2% 12,3% Gross Profit Opera)ng 128c HEPS Margin Profit (PLS 123c) Increased Improved Increased Headline to to Earnings 75,7 cents R352,2 Per share per share Million 135c (FY14) 2014: 27,5% 2014: 2014: 5.8% R313,6 million 65,1 cents per share Development in opera)onal
Slide 4: Revenue: Print operations
Revenue: Print operations Marginal decline in revenue to R1,97 billion (2015: R2,0 billion). 6 Months 6 Months Category Sep 2015 Sep 2014 Comments Share % Share % Although the magazine market is stable, there are Magazines 20,8% 24,1% volume pressures on certain elements of the trade magazine market
Slide 5: Revenue: Labels and tissue operations (Manufacturing)
Revenue: Labels and tissue operations (Manufacturing) Showed strong growth, revenue increased 63,9% to R127,1 million (2015: R77,5 million). 6 Months 6 Months Category Sep 2015 Sep 2014 Comments Share % Share % The labels share grew due to the addiHon of wet glue Labels 2,7% 1,8% labels to the exisH
Slide 6: Business updates
Business updates Installed new packaging gravure press at Cape Town plant enhancing print on packaging capability. Delivery and installaHon of the addiHonal )ssue mill and equipment underway. Diversified products gained market share through retail client uptake. New senior sales appointments will ass
Slide 7: Introduction to new entity
Introduction to new entity AmalgamaHon of Paarl Media Paarl facility and Digital Print Solu)ons The integraHon will result in major (DPS) to form Novus Print improvements in efficiencies within Solu)ons with effect from 1 Novus Holdings. November 2015. Consolidated operaHon will offer a comprehensive ra
Slide 8: Group financial position
Group financial position 30 Sep 2015 31 Mar 2015 Rm Rm Property, plant and equipment 2 161 2 135 Other non-current assets 175 164 Assets Current assets excluding cash 1 134 834 Cash and cash equivalents 259 389 TOTAL 3 729 3 522 Equity 2 641 2 567 Non-current liabili)es 339 328 Equity Long-term por)
Slide 9: Income statement
Income statement Change % 2 075m Revenue - 2 083m 1 505m Cost of sales 1 428m 570m Gross profit 14.7% 654m 256m Opera)ng and other expenses -18.4% 302m 314m Opera)ng profit 11.7% 352m 5m Finance income 140% 12m 26m Finance costs -4% 25m 293m Profit before taxa)on 15.3% 339m 82m Taxa)on -15.9% 95m 212m
Slide 10: Strong cash position remains
Strong cash position remains 2014 Reviewed 2015 Reviewed 6 MONTHS ENDED 30 SEPTEMBER 261m Cash generated from opera)ons 358m -65m -94m Net purchase of property, plant, equipment and intangible -85m -79m Taxa)on paid 111,3m Free cash flow 184,5m -64m -57m Acquisi)on of subsidiaries, non-controlling in
Slide 11: Strategy remains unchanged
Strategy remains unchanged Diversifica)on in line with Expanding )ssue Consolida)on and expansion Group’s inherent strengths. produc)on capacity. of wet glue labels. Low gearing; high cash Core print media – Ac)vely seeking growth flow generaHon to fund produc)vity and efficiency throughout Sub-Saharan
Slide 12: Current operating environment
Current operating environment Lower economic growth forecasts. Exchange and interest fluctuaHons. ConHnued strong growth in markets idenHfied for diversificaHon. 11 1
Slide 13: Outlook
Outlook Opera)ng Challenging Efforts to market profits in increase the the second condi)ons Group’s requires half of the earnings year will not conHnued from other risk necessarily African be in line assessment territories and refined with the con)nue. first six investment months. decisions. Con)nue to
Slide 14: Investment proposition
Investment proposition Sound financial base from which to grow and Proven management team history of sustainable earnings, Diversified revenue aided by highly trained strong cash flow generaHon streams and product and skilled workforce. and cash conversion with offerings. low financial leverage. Entrench
Slide 15: Overall product offering
Overall product offering • Brochures, leaflets and catalogues Retail inserts • Reports and calendars and catalogues • Retail inserts for the majority • ElecHon ballots of South African retailers • ExaminaHon materials Security and assessments products • Other security • ABC-listed magazines related p
Slide 16: Questions
novus holdings Questions
Slide 17: Investor Relations contacts
Investor Relations contacts: Edrich Fivaz and Carrie Nixon +27 21 550 2500 Investor.Rela)ons@novus.holdings 16 1