Novus Holdings Ltd. · JSE:NVS
Novus — FY2019 Earnings Presentation
23 slides from Novus's earnings presentation, June 2019
Slide 1: Year ended 31 March 2019 Annual financial results
YEAR ENDED 31 MARCH 2019 Novus Holdings 2019 Annual financial results
Slide 2: Contents
CONTENTS Novus Holdings 2019 Annual financial results 2
Slide 3: Executive overview
Novus Holdings 2019 Annual financial results 3
Slide 4: Results Summary
RESULTS SUMMARY REVENUE R4 332m [2018: R4 308m] (0,6%) OPERATING PROFIT (Excluding profit/(loss) on disposal of assets and investments, impairments and re-classification of foreign currency translation reserve) R294m [2018: R501m] (41,4%) HEADLINE EARNINGS PER SHARE 60,4c [2018: 102,9c] (41,3%) DIVI
Slide 5: Financial review
Novus Holdings 2019 Annual financial results 5
Slide 6: Group Income Statement Key Features
GROUP INCOME STATEMENT KEY FEATURES [FOR YEAR ENDED 31 MARCH 2019] 2019 2018 % CHANGE (Rounded) Revenue R4 332m R4 308m 0,6% ▲ Gross profit R944m R1 126m (16,2%) ▼ Gross margin 21,8% 26,2% (4,4%) ▼ Overheads R651m R626m 3,9% ▲ OPERATING PROFIT* R294m R501 (41,4%) ▼ OPERATING MARGIN* 6,8% 11,6% (4,8%
Slide 7: Cash Position Analysis
CASH POSITION ANALYSIS Year ended Year ended 31 Mar 2019 (R’m) 31 Mar 2018 (R’m) CASH INFLOWS • Media24 impact on EBITDA. Cash generated from operations 433 718 • Proceeds on sale of Paarl (excluding working capital) building of R60m. Working capital -202 -34 Net property, plant, equipment and intan
Slide 8: Cash Flow Movements
CASH FLOW MOVEMENTS FINANCIAL YEAR ENDED 31 MARCH 2019 R’m 700 161 202 600 500 277 69 400 107 62 48 300 141 200 161 100 209 35 0 -54 -100 Cash Operating Depreciation Working Taxation Acquisition Proceeds Acquisition Payment Dividends Other Balance at balance at profit capital paid of PPE on of for s
Slide 9: Working Capital
WORKING CAPITAL FINANCIAL YEAR ENDED 31 MARCH 2019 R’m 1 400 1 200 1 089 985 1 000 866 800 648 1 011 613 1 244 529 512 702 501 600 686 400 692 587 475 200 345 - H1 H2 H1 H2 2018 2019 Debtors Creditors Inventory Net working capital Novus Holdings 2019 Annual financial results FINANCIAL REVIEW 9
Slide 10: Capex Overview [Excl. Intangibles]
CAPEX OVERVIEW [EXCL. INTANGIBLES] FINANCIAL YEAR ENDED 31 MARCH 2019 300 CAPEX • Maintenance capex incurred reduced from the prior year. 250 • Capex in the printing operations is limited largely to maintenance spend, with proactive maintenance 200 programmes aiming to extend the useful lives of ass
Slide 11: Group Overview Revenue
GROUP OVERVIEW • Print revenues remained under pressure REVENUE with volume declines in all product categories except for retail and catalogues. FINANCIAL YEAR ENDED 31 MARCH 2019 • Renegotiated Media24 contracts led to a circa R500 million decrease on revenue. • The 12 month (2018: six months) incl
Slide 12: Print Segment Commentary
PRINT SEGMENT | Commentary FINANCIAL YEAR ENDED 31 MARCH 2019 • Print revenue decreased by only 7,9% REVENUE despite the reduced pricing and volumes 77,3% of revenue with the renegotiated Media24 contracts coupled with a declining market and local economy. • Retail inserts and catalogues increased b
Slide 13: Packaging Segment Commentary
PACKAGING SEGMENT | Commentary • Overall revenue contribution of segment REVENUE increased from 11,0% to 17,3% of total *Includes ITB Flexible Packaging Solutions and Labels. revenue. • Includes full year’s result for ITB, FINANCIAL YEAR ENDED 31 MARCH 2019 contributing additional revenue of R241 mi
Slide 14: Packaging Segment Commentary: Rand and Oil Price
PACKAGING SEGMENT | Commentary FINANCIAL YEAR ENDED 31 MARCH 2019 Rand vs US Dollar (Average) Oil Price (R) 16 1200 14 1000 12 10 800 8 600 6 400 4 200 2 0 0 Jul-18 Jun-18 Oct-18 Feb-19 Apr-18 Sep-18 Nov-18 May-18 Dec-18 Mar-18 Jan-19 Mar-19 Aug-18 Apr-18 May-18 Mar-18 Dec-18 Aug-18 Mar-19 Jun-18 Oc
Slide 15: Tissue Segment Commentary
TISSUE SEGMENT | Commentary FINANCIAL YEAR ENDED 31 MARCH 2019 • Increased by 33,3% year-on-year with REVENUE additional mill capacity coming online. 5,4% of revenue • Stabilised operationally, breaking-even monthly. R’m FY16 FY17 FY18 FY19 • Improved to 2,4% up from -10,9%, on the GROSS MARGIN back
Slide 16: Revenue Contribution
REVENUE CONTRIBUTION VOLUME SHARE OF GROUP SHARE OF GROUP CATEGORY GROWTH/ REVENUE 2019 REVENUE 2018 (DECLINE) PRINT PRODUCT CATEGORY Magazines 11,1% 15,6 % -15,9% Newspapers 10,5% 18,6% -47,4% The Print division remains at Retail Inserts & Catalogues 29,9% 28,3% 3,2% the core of Novus Holdings and
Slide 17: Strategy and outlook
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 18: Outlook and Segmental Focus
OUTLOOK AND SEGMENTAL FOCUS PACKAGING TISSUE PRINT • Expect the declines in all product • Increased consumer awareness of • Industry struggling in the current low categories to continue as an industry plastic pollution, fortunately our focus growth economic environment. trend, however the book and e
Slide 19: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK STRATEGIC FOCUS AREA FY19 PROGRESS FY20 FOCUS Ensure optimal • Reviewed group capital structure. • Track target linked KPI’s per facility on a monthly basis and group capital • Bought back 9% (R139 million) of issued share capital. take corrective measures where required.
Slide 20: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK STRATEGIC FOCUS AREA FY19 PROGRESS FY20 FOCUS Grow non-traditional • Diversification of revenue streams was not a priority • Focus on improving the margins and profitability of non- printing during the year. traditional printing operations. businesses’ revenue • Focused on
Slide 21: Appendix
Novus Holdings 2019 Annual financial results 21
Slide 22: Novus Holdings 2019 Annual financial results
Novus Holdings 2019 Annual financial results 22
Slide 23: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS