Slide 1: Annual Financial Results
Annual Financial Results For the year ended on 31 March 2015 Analysts and Investors Presentation Friday, 12 June 2015
Slide 2: Content
Content Description 01 Business Overview 02 Financial Performance 03 Strategy and Outlook 04 Q&A Presented by Stephen van der Walt, Chief Executive Officer 11
Slide 3: Group / Divisional Structure
Group / Divisional Structure B-BBEE Contributor Status: Number of Employees: Level 3 with value-adding supplier 1915 status Novus Holdings (previously Paarl Media Group) is the most comprehensive commercial printing and manufacturing operation in South Africa. 21
Slide 4: Product Offering
Product Offering • Brochures, leaflets and catalogues Retail inserts • Reports and calendars and catalogues • Retail inserts for the majority • Election ballots of South African retailers • Examination materials Security and assessments products • Other security • ABC-listed magazines related printi
Slide 5: Entrenched Customer relationships
Group Key Strengths Diversified revenue Sound financial base Streams and product from which to grow and offerings history of sustainable earnings, Proven management team strong cash flow generation aided by highly trained and cash conversion with and skilled workforce Entrenched Entrenched customer
Slide 6: Key Business Highlights for 2015
Key Business Highlights for 2015 The Correll Tissue plant was acquired Launch of new Novus Holdings brand in June 2014 to commercialise paper and corporate identity – previously by-products and diversify the Group’s the Paarl Media Group. product offering and revenue stream. Subsequently, an additio
Slide 7: Overview of Financial Results
Overview of Financial Results 21% 14.2% 2x 7.4% cover R451m 128c Free (PLS 123c) 794c Cash Headline Net asset 64c R4 261m Flow Earnings value per Dividend Revenue Per share Share per share R370m R3 969m (FY14) 135c 695c 0c (FY14) (FY14) (FY14) (FY14) 5.8% 61
Slide 8: Income Statement
Income Statement Change 3,969m Revenue 7.4% 4,261m 1,144m Gross profit 2.2% 1,169m 28.8% Gross margin -1.4% 27.4% Operating profit – exc. capital items -4.9% 668m 635m 16.8% Operating margin – exc. capital items -1.9% 14.9% 406m Headline earnings -5.1% 385m 135,4 Headline earnings per share - cents
Slide 9: Key Highlights
Key Highlights Generated free cash flow of R451 million available for loan repayments, investing activities and dividend distributions Major strides made to diversify revenue streams with the acquisition of tissue plant and entry into the broader label market Strong financial position allows dividen
Slide 10: Challenging Conditions
Challenging Conditions Significant factors that affected the Group’s financial performance were the following: Exchange rate, effecting foreign a paper prices and majority of other raw materials Local economic conditions: o Low GDP growth o Difficult year for the retail sector exacerbated by mining-
Slide 11: Financial Position - Highlights
Financial Position - Highlights • This will assist in funding dividends of Solid cash R205m and expansionary capex of Position R300m R282m Low debt • Allows for leveraging acquisitions and Level R152m funding organic growth (Debt equity ratio 6%) Working capital • Debtors and stock days ahead on tar
Slide 12: Cash Flow - Highlights
Cash Flow - Highlights • High cash flow generation allowed Free cash for funding of Correll Tissue Flow R451m (LY R370m) acquisition and accumulation of cash • Expansion – R88m (LY R179m) Capex R168m (LY R251m) • Maintenance – R80m (LY R72m) 11 1
Slide 13: Industry Challenges / Risks
Industry Challenges / Risks Companies such as Novus Holdings, operating in the print and related manufacturing industry typically face the following strategic risks: Economic policies The majority of material Key infrastructure failure and patterns and equipment suppliers (Eskom, water supply, etc.)
Slide 14: Operations: Printing
Operations: Printing The division’s products performed as follows: Share of Category Group Comments Revenue The volume decline in this product category can be ascribed to the Magazines 22.5% closure of magazines and a decline in the pagination and circulation of existing magazines. Retail inserts ar
Slide 15: Operations: Labels and Tissue (Manufacturing)
Operations: Labels and Tissue (Manufacturing) The division’s products performed as follows: Share of Category Group Comments Revenue A significant project includes a Mozambique beer labels contract landed during the past year. Self-adhesive capacity was expanded during the Labels 2.4% year to meet t
Slide 16: Outlook Summary
Outlook Summary Core Heatset and Key focus areas for Coldset divisions - Printing - 2016: Consolidation and productivity • Maintaining profitability in and efficiency expansion of wet challenging economic and gains coupled with glue labels sector conditions. increased market • Achieving the above th
Slide 17: Questions
novus holdings Questions
Slide 18: For further queries please contact Edrich Fivaz at Novus Holdings
For further queries please contact Edrich Fivaz at Novus Holdings Edrich.Fivaz@novus.holdings 021 550 6212 17 1