Novus Holdings Ltd. · JSE:NVS
Novus — H1 FY2017 Earnings Presentation
19 slides from Novus's earnings presentation, Nov 8, 2016
Slide 1: Interim Financial Results
Interim Financial Results For the six months ended 30 September 2016 Presentation – 8 November 2016
Slide 2: Content
Content 1 Executive Overview 3 Operational Overview 2 Financial Overview 4 Outlook and Strategy Presented by: Keith Vroon, Chief Executive Officer & Edrich Fivaz, Chief Financial Officer 2 2
Slide 3: Executive Overview
Executive Overview 3
Slide 4: Performance Overview
Performance Overview Core Business • Core print business performance satisfying despite ongoing tough trading conditions. Exchange Rate • Print segment mostly impacted by weaker exchange rate. Growth Initiatives • Negative financial impact of growth initiatives greater than anticipated. Tissue & Lab
Slide 5: Results Summary
Results Summary Revenue R2 177m (Sep ‘15: R2 083m) 4,5% Operating Profit R304m (Sep ‘15: R352m) 13,6% Headline Earnings Per Share 63,3c (Sep ‘15: 75,7c) 16,4% 5
Slide 6: Financial Overview
Financial Overview 6
Slide 7: Group Overview
Group Overview R 2 500 000 Turnover 0.34 Operating profit Gross profit % Revenue 2 176 516 • Turnover increased by 4,5% to R2,18bn. R 2 000 000 2 075 282 2 082 757 • Inflationary increase in printing revenues 0.32 31.4% partially offset by volume declines. • Good growth experienced on label volumes,
Slide 8: Print Segment Overview
Print Segment Overview R 2 500 000 Revenue Turnover 0.34 • Turnover increased by 3,3% to R2,0bn. Operating profit • Magazine and newspaper print volumes down. Gross profit % • Retail products stable and books increasing in R 2 000 000 volume. 1 997 762 32.0% 2 019 657 0.32 1 955 671 • Non-repeat of
Slide 9: Other Segment Overview
Other Segment Overview R 180 000 Revenue Turnover • Turnover increased by 23,4% to R157m. Operating profit 0.4 • Label revenues contributed to most of the R 160 000 Gross profit % 156 860 R 140 000 growth. • Tissue production flat. R 120 000 127 086 0.3 Gross Profit Percentage R 100 000 • New volume
Slide 10: Income Statement
Income Statement Six months ended Six months ended 30 Sep 2016 (R’m) 30 Sep 2015 (R’m) Operating profit 304 352 Finance income 8 12 Finance costs -22 -25 Profit before tax 290 339 Taxation -88 -95 Profit after tax 202 244 Effective tax rate 30,2% 27,9% 11 10
Slide 11: Cash Position Analysis
Cash Position Analysis Six months ended Six months ended Item 30 Sep 2016 (R’m) 30 Sep 2015 (R’m) Cash Cash Generated Generated from from Operations Operations 49 358 NetNet Property, Property, Plant, Plant, Equipment Equipment andand Intangibles Intangibles -138 -94 Taxation Taxation Paid Paid -90
Slide 12: Capital Expenditure
Capital Expenditure Print Segment Other Segment • Expenditure of R49m incurred on the digital print expansion • The installation of the second tissue mill and additional project. converting capacity accounted for R51,6m of the total capital • Spending on maintenance capex remains under tight control
Slide 13: Operational Overview
Operational Overview 13
Slide 14: Revenue Contribution: Product Category
Revenue Contribution: Product Category Share Share Volume Growth / Sep 2016 YTD Sep 2015 YTD (Decline) Magazines 19,7% 20,4% -7,0% Retail inserts and catalogues 27,9% 27,4% 0,1% Books and directories 23,3% 23,4% 5,8% Newspapers 21,9% 22,7% -10,0% Security products - - - Labels 3,5% 2,7% 82,7% Tissue
Slide 15: Outlook & Strategy
er te inau rane Outlook & Strategy
Slide 16: Outlook and Focus Areas
Outlook and Focus Areas Print Tissue Labels • Continued publication volume • Expectation that losses will • Financial break-even has been decline. continue but would slow down achieved. • Retail season imminent. towards the end of the financial • Grow FMCG clientbase and year with the start-up of pa
Slide 17: Strategy On Track
Strategy On Track Maximise returns from core print business. Delivering on current diversification projects – including tissue, labels, NPS and Africa strategy. Identifying new targets for investment and diversification in suitable growth areas, at the right price. 17
Slide 18: Questions
Questions 18
Slide 19: Investor Relations Contacts
Investor Relations Contacts: Natasha Evason or Carrie Nixon +27 21 550 2500 Investor.Relations@novus.holdings