Novus Holdings Ltd. · JSE:NVS
Novus — FY2021 Earnings Presentation
23 slides from Novus's earnings presentation, June 2021
Slide 1: Annual Financial Results Presentation for year ended 31 March 2021
• 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. • Any questions should be sent to the co-host, “Results Q&A”. • Questions will be addressed at the end of the presentation. • Any issues
Slide 2: Contents
Contents Annual Financial Results Presentation for year ended 31 March 2021 2
Slide 3: Executive Overview
Annual Financial Results Presentation for year ended 31 March 2021 3
Slide 4: Results summary
Results summary REVENUE R2 838m [2020: R4 112m] (31,0%) OPERATING (LOSS)/PROFIT (Excluding “other gains/(losses)”) -R20m [2020: R126m] HEADLINE LOSS PER SHARE -5,4c [2020: 23,4c] FREE CASH FLOW R362m [2020: R336m] 7,8% DIVIDENDS 50c [2020: 0c] Annual Financial Results Presentation for year ended 31
Slide 5: Financial Review
Annual Financial Results Presentation for year ended 31 March 2021 5
Slide 6: Group income statement key features
Group income statement key features For the year ended 31 March 2021 2021 2020 Revenue R2 838m R4 112m (31,0%) ▼ Gross profit R540m R768m (29,6%) ▼ Gross margin 19,0% 18,7% 0,3% ▲ Overheads R560m R641m 12,6% ▼ OPERATING (LOSS)/PROFIT* -R20m R126m ▼ OPERATING MARGIN* -0,7% 3,1% ▼ HEADLINE (LOSS)/EARN
Slide 7: Cash position analysis
Cash position analysis Year ended Year ended 31 Mar 2021 31 Mar 2020 (R’m) (R’m) Cash generated from operations 89 337 Cash inflows (excluding working capital) • Further reduction in net Working capital 250 91 working capital of R250m. Net property, plant, equipment and intangibles 25 (54) • Proceed
Slide 8: Cash flow movements for the year ended 31 March 2021
R’m -100 0 100 200 300 400 500 600 Cash balance at 175 01 April 2020 Operating loss -20 Depreciation 106 Financial year ended 31 March 2021 Cash flow movements Working capital 250 Annual Financial Results Presentation for year ended 31 March 2021 -2 Taxation paid Acquisition of PPE -34 and intangibl
Slide 9: Working capital
Working capital Financial year ended 31 March 2021 R’m 1 200 1 090 1 000 800 656 649 961 527 600 537 502 554 385 400 701 336 554 631 487 485 200 310 - Sept 2019 March 2020 Sept 2020 March 2021 Debtors Creditors Inventory Net working capital Annual Financial Results Presentation for year ended 31 Mar
Slide 10: Capex overview [excl. intangibles]
Capex overview [EXCL. INTANGIBLES] Financial year ended 31 March 2021 160 CAPEX 140 • In line with the Group’s rationalisation of assets and reduction in Print capacity, 120 maintenance spend is expected to remain modest and reduced in the Print 100 76 segment. R’m 80 52 Expansion Maintenance 29 60
Slide 11: Operating Review
Annual Financial Results Presentation for year ended 31 March 2021 11
Slide 12: Group overview
Group overview Financial year ended 31 March 2021 • Printing revenue contributed 74,8% (2020: REVENUE R’m FY18 FY19 FY20 FY21 77,0%) to total revenue. • Print experienced volume declines on all 5 000 45% product categories with an overall tonnage drop of 35,8% (2020: 4,2%). 4 500 4 308 4 332 4 112 4
Slide 13: Print segment
Print segment | Commentary Financial year ended 31 March 2021 • The decrease in revenue was driven by volume REVENUE declines of 35,8% overall across product categories. R’m FY18 FY19 FY20 FY21 • The gross profit margin in Print improved GROSS MARGIN 4 000 45% 3 634 largely as a result of a reductio
Slide 14: Packaging segment
Packaging segment | Commentary Financial year ended 31 March 2021 *Includes ITB Flexible Packaging Solutions and Novus Labels. • Labels revenue declined by 31,6%. This is a REVENUE direct result of COVID-19 and the effect of R’m FY18 FY19 FY20 FY21 the alcohol ban.. • Although ITB continued to sell
Slide 15: Tissue segment
Tissue segment | Commentary Financial year ended 31 March 2021 R’m FY18 FY19 FY20 FY21 45% 2 400 40% 35% 1 900 30% 25% • The Tissue division contribution to Group REVENUE 20% revenue is 4,7% with this being reflective for 1 400 15% six months after which was equity accounted. 10% 8,6% 5% • Gross pro
Slide 16: Revenue contribution
Revenue contribution VOLUME SHARE OF GROUP SHARE OF GROUP GROWTH/ CATEGORY REVENUE 2021 REVENUE 2020 (DECLINE) PRINT PRODUCT CATEGORY Tissue Magazines 7,7% 9,4% -42,3% 5% Newspapers 9,1% 11,1% -40,0% Packaging 21% Retail Inserts & Catalogues 26,5% 29,0% -38,6% Books & Directories 31,1% 27,0% -26,6%
Slide 17: Outlook
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 18: Outlook and segmental focus
Outlook and segmental focus PRINT PACKAGING TISSUE The right-sizing of our Print Labels Gravure is expected to see Transaction closed out after year-end. operations bodes well for the future some recovery as trading normalises. Equity accounted for in future. and this line of ‘right-sizing’
Slide 19: Group strategy and focus
Group strategy and focus STRATEGIC FOCUS AREA FY21 PROGRESS FY22 FOCUS Ensure optimal • Group structure has been further trimmed to suit • Continue to track ROAs per facility on monthly basis and group capital circumstances, lazy assets to be identified and liquidated, take corrective measures on an
Slide 20: Group strategy and focus
Group strategy and focus STRATEGIC FOCUS AREA FY21 PROGRESS FY22 FOCUS Drive operational • Effectively managed through continuous assessment of • Improving press utilisation, waste minimisation and the efficiencies individual plant performance against targets, and reduce analysis of optimum producti
Slide 21: Appendix
Annual Financial Results Presentation for year ended 31 March 2021 21
Slide 22: Annual Financial Results Presentation for year ended 31 March 2021
Annual Financial Results Presentation for year ended 31 March 2021 22
Slide 23: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS