Novus Holdings Ltd. · JSE:NVS
Novus — FY2020 Earnings Presentation
22 slides from Novus's earnings presentation, August 2020
Slide 1: Novus Holdings 2020 Annual financial results
All participants are muted upon admission to this presentation and throughout the presentation. The presentation is being recorded and will be available on our website. Please send any questions regarding the results presentation to the co-host titled “Results Q&A”. These will be collated and
Slide 2: Contents
Contents. Novus Holdings 2020 Annual financial results 2
Slide 3: Novus Holdings 2020 Annual financial results
Novus Holdings 2020 Annual financial results 3
Slide 4: Results summary
Results summary. REVENUE R4 112m [2019: R4 332m] (5,1%) OPERATING PROFIT (Excluding “other gains/(losses)”) R126m [2019: R294m] (57,1%) HEADLINE EARNINGS PER SHARE 23,4c [2019: 60,4c] (61,2%) FREE CASH FLOW R336,0m [2019: R116,6m] 188,2% Novus Holdings 2020 Annual financial results EXECUTIVE OVERVIE
Slide 5: Novus Holdings 2020 Annual financial results
Novus Holdings 2020 Annual financial results 5
Slide 6: Group income statement key features
Group income statement key features. [FOR YEAR ENDED 31 MARCH 2020] 2020 2019 % CHANGE Revenue R4 112m R4 332m (5,1%) ▼ Gross profit R768m R944m (18,6%) ▼ Gross margin 18,7% 21,8% (3,1%) ▼ Overheads R641m R651m (1,5%) ▼ OPERATING PROFIT* R126m R294m (57,1%) ▼ OPERATING MARGIN* 3,1% 6,8% (3,7%) ▼ HEA
Slide 7: Cash position analysis
Cash position analysis. Year ended Year ended 31 Mar 2020 31 Mar 2019 CHANGE (R’m) (R’m) (R’m) Cash inflows Cash generated from operations Significant reduction in (excluding working capital) 336,5 433,0 (96.5) working capital of R293m resulting in net cash inflow. Working capital 91,1 (201,9) 293
Slide 8: Cash flow movements
R’m 50 -100 0 -50 100 150 200 250 300 350 Cash balance at -54 01 April 2019 Operating profit 126 Depreciation Novus Holdings 2020 Annual financial results 164 Financial year ended 31 March 2020 Cash flow movements. Working capital 91 Taxation paid -38 Acquisition of PPE -81 and Intangibles Proceeds
Slide 9: Working capital
Working capital. Financial year ended 31 March 2020 R’m 1 200 1 090 1 000 985 866 1 011 800 961 613 686 656 600 512 502 385 400 554 692 631 587 487 200 - H1 H2 H1 H2 2019 2020 Debtors Creditors Inventory Net working capital Novus Holdings 2020 Annual financial results FINANCIAL REVIEW 9
Slide 10: Capex overview
Capex overview. [EXCL. INTANGIBLES] Financial year ended 31 March 2020 300 CAPEX In line with the Group’s 250 rationalisation of assets and reduction in Print capacity, maintenance spend is expected to remain modest 200 and reduced in the Print segment. R’m 180 150 Expansion Maintenance 76 100 52
Slide 11: Group overview
Group overview. Financial year ended 31 March 2020 Printing revenue comprised 77,0% (2019: REVENUE 77,3%) of total revenue. Print experienced volume declines on all product categories, R’m FY17 FY18 FY19 FY20 except books and directories, with an overall tonnage drop of 4,2% (2019: 5 000 45% 12,4%
Slide 12: Print segment | Commentary
Print segment | Commentary. The decrease in revenue was driven by REVENUE volume declines of 4,2% overall across product categories, except for books and Financial year ended 31 March 2020 directories which saw an overall tonnage increase of 17,8%. 77,0% of revenue The gross profit margin in Print
Slide 13: Packaging segment | Commentary
Packaging segment | Commentary. *Includes ITB Flexible Packaging Solutions and Novus Labels. The UV Flexo division of Labels was sold REVENUE Financial year ended 31 March 2020 during the year and this led to a R69m reduction in turnover in comparison to the prior year. 16,7% of revenue On a lik
Slide 14: Tissue segment | Commentary
Tissue segment | Commentary. Financial year ended 31 March 2020 Revenue increased due to price increases on REVENUE products sold despite volume being down by 6,3% of revenue 2,3% year on year. Gross profit margin decreased as a result of MARGIN GROSS R’m FY17 FY18 FY19 FY20 unfavourable market
Slide 15: Revenue contribution
Revenue contribution. VOLUME SHARE OF GROUP SHARE OF GROUP GROWTH/ CATEGORY REVENUE 2020 REVENUE 2019 (DECLINE) PRINT PRODUCT CATEGORY Magazines 9,4% 11,1% -19,0% Newspapers 11,1% 10,5% -2,5% The Print division remains Retail Inserts & Catalogues 29,0% 29,9% -10,8% at the core of Novus Holdings and
Slide 16: Novus Holdings | 2019 Interim Results
NOVUS HOLDINGS | 2019 INTERIM RESULTS
Slide 17: Outlook and segmental focus
Outlook and segmental focus. PRINT PACKAGING TISSUE Ongoing review of future operational The Lockdown regulations had little From 01 June 2020 Novus Holdings requirements has resulted in a lower impact on the flexible packaging will continue to own 49% of the cost-base in order to make future
Slide 18: Group strategy and outlook
Group strategy and outlook. STRATEGIC FOCUS AREA FY20 PROGRESS FY21 FOCUS Ensure optimal Tracked target linked KPI’s per facility on a monthly basis and Continue to track ROA’s per facility on monthly basis and group capital took corrective measures where required. take corrective measures on an
Slide 19: Group strategy and outlook
Group strategy and outlook. STRATEGIC FOCUS AREA FY20 PROGRESS FY21 FOCUS Drive operational Leaner structures and more efficient management structures. Continue to embed culture of innovation. efficiencies Embedded a culture of innovation. Continuously assess individual plant performance aga
Slide 20: Novus Holdings 2020 Annual financial results
Novus Holdings 2020 Annual financial results 20
Slide 21: Novus Holdings 2020 Annual financial results
Novus Holdings 2020 Annual financial results 21
Slide 22: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS +27 21 550 2500 Investor.Relations@novus.holdings NOVUS HOLDINGS | 2019 INTERIM RESULTS