Novem Group SA · XETR:NVM
Novem Group SA — Q3 2021/22 Earnings Presentation
25 slides from Novem Group SA's earnings presentation, Feb 24, 2022
Slide 1: Q3 2021/22 Results
24 February 2022 Q3 2021/22 Results
Slide 2: Overview
1 OVERVIEW
Slide 3: Q3 2021/22 key events
Q3 2021/22 key events Novem completed a reforestation project with 3,500 trees close to where the company’s head office is located Transfer of recently acquired Faurecia business of c.€18.0m annual revenue well underway starting in H1 2022 As expected, Q3 2021/22 showed a slight but noticeable
Slide 4: Q3 2021/22 financial highlights
Q3 2021/22 financial highlights Q3 2020/21 Q3 2021/22 Revenue (€m) 163.1 159.9 Adj. EBIT (€m) 28.9 20.4 Adj. EBIT margin (%) 17.7% 12.8% Free cash flow (€m) 32.4 8.9 Cash conversion (%) 94.0% 83.9% Net leverage (x Adj. EBITDA) 2.4x 1.7x © Novem Group Public 24 February 2022 Page 4
Slide 5: YTD 2021/22 financial highlights
YTD 2021/22 financial highlights YTD 2020/21 YTD 2021/22 Revenue (€m) 419.5 455.2 Adj. EBIT (€m) 51.8 58.6 Adj. EBIT margin (%) 12.4% 12.9% Free cash flow (€m) 64.1 19.9 Cash conversion (%) 86.2% 87.5% Net leverage (x Adj. EBITDA) 2.4x 1.7x © Novem Group Public 24 February 2022 Page 5
Slide 6: Group results
Fe SS CSS eS a ee 2 GROUP RESULTS
Slide 7: Revenue
Revenue Revenue (€m) Highlights -2.0% Q3 2021/22 saw a strong recovery against previous quarter with 163.1 8.9 159.9 total revenue of €159.9m almost at prior year level (-2.0% y/y) 14.3 Revenue Series was down by -5.6% or €-8.7m compared to last 154.3 year largely due to weaker production volume
Slide 8: Adj. EBIT
Adj. EBIT Adj. EBIT (€m) Highlights -29.3% Adj. EBIT in Q3 2021/22 re-strengthened from previous quarter to 28.9 €20.4m but fell short of last year by €-8.5m or -29.3% 20.4 As a percentage of revenue, Adj. EBIT margin of 12.8% was back in the double-digit but clearly behind last year (17.7% PY)
Slide 9: Free cash flow
Free cash flow Free cash flow (€m) Highlights -72.5% Although improved over previous quarter, free cash flow recorded at €8.9m in Q3 2021/22, down by €-23.5m or -72.5% y/y 32.4 Cash flow from operating activities of €17.8m was around half of last year (€-18.7m y/y) due to higher trade receivable
Slide 10: Capital expenditure
Capital expenditure Capital expenditure (€m) Highlights >100% In Q3 2021/22 capital expenditure doubled compared to the same 4.5 reporting period last year As a consequence, the underlying capex ratio amounted to 2.8% of revenue equalling an increase of 1.5pp y/y 2.2 Novem undertook investment
Slide 11: Total working capital
Total working capital Total working capital (€m) Highlights +20.9% As of 31 December 2021, total working capital was significantly 125.6 151.9 above last year at €151.9m (+20.9% y/y) 13.5 14.4 76.7 61.8 Variance of €-26.3m y/y was attributable to increased tooling net 42.2 40.1 (€-14.8m), higher
Slide 12: Capital structure
Capital structure Net financial debt (€m) Highlights 2.4x 1.7x As of 31 December 2021, both gross financial debt and cash 275.6 declined sharply compared to 31 December 2020 207.6 434.8 As of 31 December 2021, the principal sources of funds were 281.5 €73.9m cash (31 December 2020: €159.2m) and
Slide 13: Results by operating segments
3 RESULTS BY OPERATING SEGMENTS
Slide 14: Revenue by operating segments
Revenue by operating segments Revenue by region (€m) Highlights -2.0% 163.1 From a geographical perspective, revenue declined in Americas 159.9 22.3 20.8 (€-5.6m y/y) and Asia (€-1.5m y/y), partly compensated by higher 57.2 51.5 revenue in Europe (€3.9m y/y) Favourable variance in Europe exclusi
Slide 15: Adj. EBIT by operating segments
Adj. EBIT by operating segments Adj. EBIT by region (€m) Highlights -29.3% 28.9 In line with the revenue development by operating segments, the 6.1 Adj. EBIT in the regions developed similarly 20.4 8.0 3.4 In Europe the Adj. EBIT of €11.6m (€14.9m PY) was burdened by 5.5 the ongoing unproductivi
Slide 16: Questions & Answers
4 QUESTIONS & ANSWERS
Slide 17: Appendix
5 APPENDIX
Slide 18: Profit and loss statement
Profit and loss statement Profit and loss statement (€m) Q3 2020/21 Q3 2021/22 YTD 2020/21 YTD 2021/22 Revenue 163.1 159.9 419.5 455.2 Increase or decrease in finished goods and work in process 5.6 4.4 -6.6 16.5 Total operating performance 168.8 164.3 412.8 471.8 Other operating income 3.6 2.1 6.8 1
Slide 19: Balance sheet
Balance sheet Balance sheet (€m) 31 Dec 2020 31 Dec 2021 31 Dec 2020 31 Dec 2021 Total equity -528.6 33.6 Intangible assets 3.2 3.2 Pensions and similiar obligations 32.2 36.5 Property, plant and equipment 187.3 181.5 Tax liabilities 0.0 0.0 Trade receivables 48.0 50.5 Other provisions 7.8 4.9 Other
Slide 20: Cash flow statement
Cash flow statement Cash flow statement (€m) Q3 2020/21 Q3 2021/22 YTD 2020/21 YTD 2021/22 Profit for the period 3.5 9.6 -9.4 15.4 Income tax expense (+)/income (-) 10.3 4.9 24.5 14.4 Financial result (+)/(-) net 12.3 0.9 36.3 20.7 Depreciation, amortization and impairment 7.9 7.7 23.1 23.0 Other no
Slide 21: Cash flow statement (cont'd)
Cash flow statement (cont’d) Cash flow statement (€m) Q3 2020/21 Q3 2021/22 YTD 2020/21 YTD 2021/22 Cash received (+) from disposals of intangible assets -0.1 -0.1 Cash received (+) from disposals of property, plant and equipment 0.2 0.9 -0.2 0.8 Cash paid (-) for investments in intangible assets -0
Slide 22: EBIT adjustments
EBIT adjustments EBIT adjustments (€m) Q3 2020/21 Q3 2021/22 YTD 2020/21 YTD 2021/22 Revenue 163.1 159.9 419.5 455.2 EBIT 23.3 16.8 45.9 51.9 EBIT margin 14.3% 10.5% 10.9% 11.4% Restructuring 5.6 5.6 Exceptional ramp-up costs 0.000000 0.000000 Material quality claims -0.1 Single impairments 0.000000
Slide 23: Definitions and basis of preparation of the financial information
Definitions and basis of preparation of the financial information Adj. EBIT is defined as EBIT as adjusted for certain adjustments which management considers to be non-recurring in nature, as Novem believes such items are not reflective of the ongoing performance of the business Adj. EBITDA is d
Slide 24: Further information and disclaimer
Further information and disclaimer Date of publication 24 February 2022 Contact [email protected] | All information is constantly updated and available. Please visit the Investor Relations Portal on the Company website: https://ir.novem.com/websites/novem/English/1/investor-relations.html
Slide 25: Novem Group S.A. contact details
Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg E-Mail: [email protected] www.novem.com