Novem Group SA · XETR:NVM
Novem Group SA — HY 2022/23 Earnings Presentation
25 slides from Novem Group SA's earnings presentation, Nov 30, 2022
Slide 1: HY 2022/23 Results
30 November 2022 HY 2022/23 Results
Slide 2: Overview
1 OVERVIEW
Slide 3: Q2 2022/23 key events
Q2 2022/23 key events In Q2 2022/23, Novem reported revenue growth of +27.4% y/y in a continued demanding environment Top line was supported by FX and pent-up demand in China following corona-related restrictions in Q1 Adj. EBIT margin of 11.3% for the period under review rebounded well from P
Slide 4: Q2 2022/23 financial highlights
Q2 2022/23 financial highlights Q2 2021/22 Q2 2022/23 Revenue (€m) 139.2 177.4 Adj. EBIT (€m) 12.4 20.1 Adj. EBIT margin (%) 8.9% 11.3% Free cash flow (€m) 0.9 22.8 Net leverage (x Adj. EBITDA) 1.6x 1.5x © Novem Group Public 30 November 2022 Page 4
Slide 5: HY 2022/23 financial highlights
HY 2022/23 financial highlights HY 2021/22 HY 2022/23 Revenue (€m) 295.3 359.3 Adj. EBIT (€m) 38.2 41.5 Adj. EBIT margin (%) 12.9% 11.5% Free cash flow (€m) 11.0 20.4 Net leverage (x Adj. EBITDA) 1.6x 1.5x © Novem Group Public 30 November 2022 Page 5
Slide 6: Group results
Fe SS CSS eS a ee 2 GROUP RESULTS
Slide 7: Revenue
Revenue Revenue (€m) Highlights +27.4% 177.4 In Q2 2022/23, total revenue of €177.4m exceeded previous year 20.9 by +27.4%, which was particularly hard hit by the chip crisis 139.2 13.3 Growth was propelled by foreign exchange effects; total revenue 156.5 would have been lower by -7.1% at consta
Slide 8: Adj. EBIT
Adj. EBIT Adj. EBIT (€m) Highlights +62.4% Adj. EBIT in Q2 2022/23 was well above PY by €+7.7m, which translated into a margin of 11.3% Key driver of improved profitability was the buoyant sales trend 20.1 Bottom line was positively influenced by Asia, which rebounded 12.4 sharply after the pa
Slide 9: Free cash flow
Free cash flow Free cash flow (€m) Highlights >100% In Q2 2022/23, Novem generated a free cash flow of €22.8m and outperformed previous year by €+22.0m While being slightly negative in the preceding quarter, free cash 22.8 flow turned positive in the period under review Cash flow from operatin
Slide 10: Capital expenditure
Capital expenditure Capital expenditure (€m) Highlights +5.5% In Q2 2022/23, capital expenditure of €3.8m recorded almost on the same level as previous year Because of the higher top line, the capex ratio decreased to 2.2% 3.8 3.6 of revenue (2.6% PY) Majority of capex invested in Langfang (€1
Slide 11: Total working capital
Total working capital Total working capital (€m) Highlights +12.1% As of 30 September 2022, total working capital stood at €156.2m, 156.2 139.3 14.0 which equalled a rise of +12.1% y/y 12.7 81.9 84.6 Deviation of €-16.9m resulted from trade receivables (€-22.0m) 48.0 26.0 due to higher revenue,
Slide 12: Capital structure
Capital structure Net financial debt (€m) Highlights 1.6x 1.5x As of 30 September 2022, gross financial debt remained at prior 210.3 168.9 year level, while cash balances increased significantly 281.7 282.4 Lease liabilities, by definition forming part of gross financial debt, -71.4 amounted to
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 +27.4% On a segmental basis, revenue in Q2 2022/23 increased across 177.4 all regions (in total by €+38.2m y/y) 28.2 139.2 14.8 71.2 Favourable development in Europe (€+10.4m y/y) was supported 56.8 by strong revenue Tooling 67.6 78
Slide 15: Adj. EBIT by operating segments
Adj. EBIT by operating segments Adj. EBIT by region (€m) Highlights +62.4% In summary, bottom line was well supported by the buoyant sales 20.1 development in Americas and Asia 5.1 12.4 In Europe, profit for the period moved sideways with Adj. EBIT of 2.9 10.7 €4.4m (€3.9m PY) despite significan
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) Q2 2021/22 Q2 2022/23 HY 2021/22 HY 2022/23 Revenue 139.2 177.4 295.3 359.3 Increase or decrease in finished goods and work in process 3.2 -4.0 12.2 -5.3 Total operating performance 142.4 173.4 307.5 354.0 Other operating income 6.8 5.0 9.5 9.
Slide 19: Balance sheet
Balance sheet Balance sheet (€m) 30 Sep 2021 30 Sep 2022 30 Sep 2021 30 Sep 2022 Total equity 19.9 82.7 Intangible assets 3.4 2.7 Pensions and similiar obligations 36.4 35.3 Property, plant and equipment 179.9 182.4 Tax liabilities 0.0 0.0 Trade receivables 45.1 51.6 Other provisions 4.8 3.2 Other n
Slide 20: Cash flow statement
Cash flow statement Cash flow statement (€m) Q2 2021/22 Q2 2022/23 HY 2021/22 HY 2022/23 Profit for the period -2.4 6.3 5.8 14.7 Income tax expense (+)/income (-) 3.2 3.1 9.5 7.7 Financial result (+)/(-) net 7.8 1.2 19.8 2.1 Depreciation, amortisation and impairment 7.7 8.0 15.3 16.1 Other non-cash
Slide 21: Cash flow statement (cont'd)
Cash flow statement (cont’d) Cash flow statement (€m) Q2 2021/22 Q2 2022/23 HY 2021/22 HY 2022/23 Cash received (+) from disposals of intangible assets 0.1 0.0 0.1 0.0 Cash received (+) from disposals of property, plant and equipment -0.1 0.0 -0.1 0.8 Cash paid (-) for investments in intangible asse
Slide 22: EBIT adjustments
EBIT adjustments EBIT adjustments (€m) Q2 2021/22 Q2 2022/23 HY 2021/22 HY 2022/23 Revenue 139.3 177.4 295.4 359.3 EBIT 9.8 19.8 35.0 41.0 EBIT margin 7.1% 11.2% 11.9% 11.4% Revenue 139.21 177.4 295.31 359.3 Restructuring Material quality claims -0.1 -0.1 Single impairments Covid-19 costs 0.1 0.0 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 30 November 2022 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
Slide 25: Novem Group S.A.
Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg Email: investor.relations@novem.com www.novem.com