Novus Holdings Ltd. · JSE:NVS

Novus — H1 2023 Earnings Presentation

21 slides from Novus's earnings presentation, Nov 23, 2022

  1. Slide 1: 2023 Interim Financial Results

    2023 Interim Financial Results For the six months ended 30 September 2022 Presentation: Wednesday, 23 November 2022 •• All All participants participants will will be be on on mute mute upon upon admission admission and and throughout throughout the the presentation. presentation. •• The The presenta

  2. Slide 2: Contents

    Corttents Executive overview Financial review 6e@ Operational review Outlook 20 In conclusion Questions novus holdings Presented by Neil Birch — Chief Executive Officer Keshree Alwar — Chief Financial Officer

  3. Slide 3: Executive overview

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  4. 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 R1 478m [SEP 2021: R1 523m] -3% Operating Profit (Excluding “other gains/(losses)”) R23m [SEP 2021: R90m] Headline Earnings per share 2,9c [SEP 2021: 28,5c] Dividends Paid Rnil [SEP 2021: R75m] 4

  5. Slide 5: Financial review

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  6. 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 FY23 FY22 % change Revenue R1 478m R1 523m 3,0% ▼ Gross profit R250m R366m 31,7% ▼ Gross margin 16,9% 24,0% 7,1% ▼ Overheads R227m R276m 17,8% ▼ Operating profit* R23m R90m ▼ Operating margin* 1,6% 5,9% ▼ Headline earnings per shar

  7. Slide 7: Cash position analysis

    02 F I N A N C I A L R E V I E W Cash position analysis 30 SEPT 30 SEPT 2022 2021 Cash outflows (R’m) (R’m) • Increased investment in inventory to offset risk of Cash generated from operations paper unavailability; 69 133 (excluding working capital) excessive price increases and energy surcharges Wo

  8. Slide 8: Cash flow movements

    R’m 50 -100 0 -50 100 150 200 250 300 400 450 500 600 650 700 350 550 Cash balance at 568 01 April 2022 Operating profit 16 Depreciation 36 Non cash items 17 Cash flow movements Working capital -380 Taxation paid -11 Acquisition of PPE -16 and intangibles Proceeds on 6 disposal of assets held for sa

  9. 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 1 000 831 828 800 1 009 600 701 476 554 878 400 834 872 626 218 437 537 446 200 164 448 407 336 485 310 - Sept 2020 March 2021 Sept 2021 March 2022 Sept 2022 Debtors Creditors Inventory Net working capital 9

  10. 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] 120 100 80 52 29 R’m 60 40 9 55 51 4 20 25 21 11 5 - FY19 FY20 FY21 FY22 2023 H1 Maintenance Expansion 10

  11. Slide 11: Operational review

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  12. Slide 12: Group overview

    03 O P E R A T I O N A L R E V I E W Group overview • Revenue decreased by 3% compared to FY22. REVENUE • Restructured Novus Labels division revenue R’m FY20 FY21 FY22 FY23 contributing to decrease as expected and an overall volume decrease in Print of 14,5%. 2 400 45% 2 227 • Gross profit margin we

  13. 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 FY20 FY21 FY22 FY23 1 900 45% • The decrease in revenue was driven by a REVENUE 1 714 1 700 volume decrease of 14,5% across all product 40% categories. 1 500 35% 1 300 • The gross profit margin in Print has decreased MARGIN GROSS 1 19

  14. 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 FY20 FY21 FY22 FY23 400 45% • Labels revenue decreased by 58,9% due to REVENUE the exit of a key customer contract since the 382 40% prior year. • ITB performance remain

  15. Slide 15: 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 FY23 REVENUE FY22 (DECLINE) Print product category Tissue Magazines 3,7% 5,6% -29,6% 0,1% Newspapers 9,1% 9,0% -28,2% Packaging 23,1% Retail Inserts & Catalogues 34,0% 30,0% -11,9%

  16. Slide 16: Outlook

    NOVUS HOLDINGS | 2019 INTERIM RESULTS

  17. Slide 17: Outlook and segmental focus

    04 O U T L O O K Outlook and segmental focus Print Packaging & Tissue • Paper availability due to reduction in supply • Novus Labels is expected to remain profitable and coupled with excessive price increases and expand current client offerings. logistical costs will continue to negatively impact •

  18. Slide 18: Group outlook

    04 O U T L O O K Group outlook Acquisition of Pearson SA. Ongoing management of paper procurement challenges. Continual review of Print capacity and adjustment of efficiencies going forward. Continue to review capital allocation. Consider opportunities to optimise Group structure. 18

  19. Slide 19: In conclusion

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  20. Slide 20: Questions

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  21. Slide 21: Investor Relations Contacts

    Investor Relations Contacts +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS

Novus Holdings — H1 2023 Earnings Presentation on 6ix