Slides
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Q3 2024/25 Results 06 February 2025
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1 OVERVIEW
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© Novem Group Public Page 306 February 2025 Q3 2024/25 key events ▪ Novem secured the third EV model of the Jaguar Panthera and successfully acquired the wooden surface for the Audi Q8 e-tron ▪ In Q3 2024/25, Novem reported total revenue of €124.0m (-10.6% y/y) in still hampered market conditions ▪ Top line suffered from extended customer plant holidays over Christmas and the turn of the year ▪ Fewer working days and revenue slowdown impacted Adj. EBIT and led to a profit margin of 8.1% for quarter under review ▪ Enduring disruptive discussions and their structural impact on the OEMs' model strategies are upholding adverse momentum ▪ Therefore, deterioration in demand and negative market dynamics persist, especially in Europe and Asia ▪ Considering the growing pressure, the envisaged recovery is no longer anticipated to materialise in the medium term ▪ In this light and on the back of the current budget process, Novem adjusts its mid-term guidance for Adj. EBIT margin to 11-12% Business climate stays demanding
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© Novem Group Public Q3 2024/25 financial highlights Revenue (€m) 138.7 Adj. EBIT (€m) Adj. EBIT margin (%) Net leverage (x Adj. EBITDA) Free cash flow (€m) Q3 2023/24 Q3 2024/25 124.0 16.6 10.0 12.0% 8.1% -3.9 1.7x 1.3 2.1x Page 406 February 2025
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© Novem Group Public YTD 2024/25 financial highlights Revenue (€m) 485.8 Adj. EBIT (€m) Adj. EBIT margin (%) Net leverage (x Adj. EBITDA) Free cash flow (€m) YTD 2023/24 YTD 2024/25 403.5 54.6 36.2 11.2% 9.0% 29.6 1.7x 1.9 2.1x Page 506 February 2025
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2 GROUP RESULTS Page 6
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© Novem Group Public 123.1 108.0 15.7 16.0 138.7 124.0 Q3 23/24 Q3 24/25 Revenue Series Revenue Tooling 129.4 119.8 119.5 108.0 20.3 20.3 19.9 16.0 149.7 140.1 139.4 124.0 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Revenue Series Revenue Tooling Revenue 06 February 2025 Page 7 ▪ In Q3 2024/25, total revenue of €124.0m fell short of prior year by €-14.7m or -10.6% ▪ Top line benefited from favourable FX effects; revenue in Q3 would have been lower by €-0.6m or -0.4% at constant FX rates ▪ Revenue Series of €108.0m diminished by €-15.1m or -12.2% versus prior year and contributed 87.1% to total revenue ▪ Shortfall in Series business predominantly driven by extended customer plant holidays and continued weak call-offs ▪ Latest publicly available LVP market data showed minor growth of +0.4% y/y for the period under review ▪ Tooling added €16.0m to total revenue and noted slightly above previous year by €+0.4m or +2.3% ▪ Total revenue recorded at €553.2m on a twelve-month basis and declined by -2.6% versus last quarter Revenue (€m) Highlights LTM revenue (€m) 553.2 -10.6%
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© Novem Group Public 14.4 14.2 12.0 10.0 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 16.6 10.0 Q3 23/24 Q3 24/25 Adj. EBIT 06 February 2025 Page 8 ▪ Adj. EBIT in Q3 2024/25 of €10.0m declined by €-6.6m, resulting in a profit margin of 8.1% for the period under review ▪ Operational result suffered from extended customer plant holidays and lower call-offs, above all in Europe and Asia ▪ Profit margin was negatively impacted by poor cost coverage, primarily personnel costs could not be adjusted to the same extent as revenue ▪ Moreover, bottom line was negatively affected by an unfavourable product mix as well as model changes ▪ Strict cost management and restructuring initiatives well underway to mitigate the aforementioned negative impacts ▪ In addition, Adj. EBIT benefited from customer compensation payments and the release of accruals ▪ As with turnover, last-twelve-month Adj. EBIT dropped to €50.6m and decreased by -11.5% compared to last quarter Adj. EBIT (€m) Highlights LTM Adj. EBIT (€m) -39.7% 50.6
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© Novem Group Public -3.9 1.3 24.2 -3.0 3.6 1.3 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Free cash flow 06 February 2025 Page 9 ▪ In Q3 2024/25, Novem generated a free cash flow of €1.3m and outperformed last year by €+5.2m ▪ Cash flow from operating activities of €3.6m was ahead of prior year by €+3.9m due to the following reasons: ▪ Lower decline in trade payables (€+13.6m), reduced inventories (€+10.7m) and lower decrease in provisions (€+8.8m); conversely, loss for the period (€-15.7m), other non-cash income (€-13.1m) as well as Others (€-0.4m) ▪ Favourable development in trade payables mainly driven by prior year’s drop in trade payables resulting from reduced volume ▪ Cash flow from investing activities of €-2.3m came in below previous year’s figure of €-3.6m ▪ As a result, LTM free cash flow of €26.0m exceeded previous quarter by €+5.2m or +24.8%14 Free cash flow (€m) Highlights LTM free cash flow (€m) 26.0 >100% 16.6 10.0 Q3 23/24 Q3 24/25
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© Novem Group Public 3.5 5.0 4.5 3.5 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 4.6 3.5 Q3 23/24 Q3 24/25 Capital expenditure 06 February 2025 Page 10 ▪ Capital expenditure reached €3.5m in Q3 2024/25 and therefore €-1.2m below previous year’s level ▪ Reduced investments resulted in an underlying capex ratio of 2.8% compared to last year’s number of 3.3% ▪ Nearly half of the capital expenditure in the third quarter was invested at Novem’s largest plant in Querétaro (€1.8m) ▪ Majority of the investments in Q3 2024/25 was linked to the industrialisation of a large US EV platform ▪ On a last-twelve-month basis, capital expenditure of €16.5m was slightly below last quarter (€17.7m) ▪ Based on LTM total revenue of €553.2m, capex ratio recorded at 3.0%, which was slightly below previous quarter (3.1%) Capital expenditure (€m) Highlights LTM capital expenditure (€m) -25.0% 16.5
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© Novem Group Public 64.8 52.7 29.1 23.4 75.0 83.4 16.1 11.1 -35.8 -27.5 149.2 143.2 Q3 23/24 Q3 24/25 Inventories Receivables Tooling net Contract assets Payables ▪ As of 31 December 2024, total working capital stood -4.0% below prior year at €143.2m (€149.2m PY) ▪ Variance of €+6.0m came from lower inventories (€+12.1m), trade receivables (€+5.6m) and contract assets (€+5.0m); conversely, higher tooling net (€-8.4m) and lower trade payables (€-8.3m) ▪ Decrease in inventories driven by the volume-related decline in stock of raw materials; on the other hand, higher tooling net caused by increased tooling receivables and lower tooling-related deferred income ▪ As a percentage of last-twelve-month revenue, total working capital recorded at 25.9% as of 31 December 2024 (22.6% PY) ▪ Trade working capital, excluding tooling net and contract assets, also developed favourably from €58.1m to €48.7m y/y ▪ Reported in days outstanding, DSO of 29 (33 PY) and DIO of 44 (47 PY) improved, while DPO of 39 (45 PY) deteriorated Total working capital 06 February 2025 Page 11 Total working capital (€m) Highlights LTM total working capital (€m) -4.0% 56.2 62.2 58.2 52.7 35.1 33.8 26.2 23.4 67.3 77.6 77.0 83.4 14.9 8.5 13.3 11.1 -40.2 -39.8 -35.5 -27.5 133.3 142.2 139.3 143.2 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Inventories Receivables Tooling net Contract assets Payables
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© Novem Group Public 307.4 303.5 -125.1 -130.4 182.3 173.1 Gross financial debt Cash and cash equivalents Dec 23 Dec 24 1.6 1.8 1.9 2.1 Mar 24 Jun 24 Sep 24 Dec 24 ▪ As of 31 December 2024, gross financial debt of €303.5m was slightly below last year’s figure by €-3.9m (€307.4 PY) ▪ Lease liabilities, by definition included in the gross financial debt, stood at €53.3m (€57.7m PY) ▪ Principal sources of funds comprised €130.4m cash (€125.1m PY) and €36.3m from non-recourse factoring (€37.2m PY) ▪ In summary, net financial debt was at €173.1m and showed a noticeable improvement against prior year (€182.3m) ▪ However, the net leverage ratio worsened to 2.1x compared to previous year (1.7x Adj. EBITDA) Capital structure 06 February 2025 Page 12 Net financial debt (€m) Highlights LTM net leverage ratio 1.7x 2.1x 288.5 305.5 -169.9 -134.4 118.7 171.2 Gross financial debt Cash and cash equivalents Jun 23 Jun 24
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3 RESULTS BY OPERATING SEGMENTS
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© Novem Group Public 60.6 50.7 60.1 60.3 18.1 13.0 138.7 124.0 Q3 23/24 Q3 24/25 Europe Americas Asia 60.6 50.6 47.5 50.7 74.5 75.1 75.4 60.3 14.5 14.4 16.6 13.0 149.7 140.1 139.4 124.0 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Europe Americas Asia Revenue by operating segments 06 February 2025 Page 14 ▪ From a geographic perspective, revenue declined both in Europe and Asia, while Americas remained stable on prior year’s level ▪ Reduced revenue in Europe (€-9.8m y/y) was again mainly driven by revenue Series, which could not be offset by revenue Tooling ▪ Above all, unfavourable development was driven by the EOP of BMW 5-series, lower volumes on BMW 7-series as well as the model change on Volvo XC90 ▪ Stable development in Americas (€+0.1m y/y) was positively influenced by higher revenue Tooling, which was almost completely offset by Series business ▪ Lower top line in Asia (€-5.0m y/y) was attributable to both Tooling and Series with EOP of BMW X3 as well as weaker call-offs of BMW X5 ▪ LTM revenue showed the following distribution across all regions: 51.6% Americas, 37.9% Europe and 10.6% Asia Revenue by region (€m) Highlights LTM revenue by region (€m) -10.6% 553.2
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© Novem Group Public -3.9 1.7 19.1 8.5 1.4 -0.2 16.6 10.0 Q3 23/24 Q3 24/25 Europe Americas Asia 0.7 -1.2 -6.9 1.7 14.1 14.7 17.3 8.5 -0.3 0.7 1.6 -0.2 14.4 14.2 12.0 10.0 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Europe Americas Asia Adj. EBIT by operating segments 06 February 2025 Page 15 ▪ Adj. EBIT showed a sharp increase in Europe, while Americas dropped significantly and Asia was slightly below prior year ▪ Turnaround in Europe from loss-making Adj. EBIT of €-3.9m in prior year to €1.7m primarily supported by customer compensation payments as well as release of accruals ▪ In addition, cost savings and improved input costs such as leased workers and freight costs also increased the operational result, despite the continued negative development in the top line ▪ Adj. EBIT of €8.5m (€19.1m PY) in Americas fell short of prior year due to lower release of accruals as well as an unfavourable product mix, while input costs remained on a stable level ▪ In Asia, Adj. EBIT of €-0.2m (€1.4m PY) below prior year, mainly driven by reduced revenue in both Series and Tooling ▪ In Q3 2024/25, LTM Adj. EBIT was down by -11.5% from €57.2m to €50.6m in comparison to preceding quarter Adj. EBIT by region (€m) Highlights LTM Adj. EBIT by region (€m) -39.7% 50.6 75.8 60.6 60.6 50.6 72.3 60.1 74.5 75.1 23.7 18.1 14.5 14.4 171.9 138.7 149.7 140.1 Q2 23/24 Q3 23/24 Q4 23/24 Q1 24/25 Europe Americas Asia
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4 QUESTIONS & ANSWERS
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5 APPENDIX
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© Novem Group Public Profit and loss statement 06 February 2025 Page 18 Profit and loss statement (€m) Q3 2023/24 Q3 2024/25 YTD 2023/24 YTD 2024/25 Revenue 138.7 124.0 485.8 403.5 Increase or decrease in finished goods and work in process 2.5 3.1 -9.0 5.6 Total operating performance 141.3 127.2 476.8 409.1 Other operating income 8.2 6.5 13.1 11.8 Cost of materials -67.7 -64.3 -231.6 -204.4 Personnel expenses -40.5 -37.3 -125.9 -112.2 Depreciation, amortisation and impairment -8.2 -8.0 -24.7 -24.0 Other operating expenses -16.5 -14.0 -53.1 -44.0 Adj. EBIT 16.6 10.0 54.6 36.2 Adjustments -1.4 -0.2 -6.0 -3.1 Operating result (EBIT) 15.3 9.8 48.6 33.1 Finance income 7.6 1.2 7.8 3.7 Finance costs -5.1 -14.2 -14.4 -24.9 Financial result 2.5 -13.0 -6.6 -21.2 Income taxes -2.1 -4.4 -8.3 -9.0 Deferred taxes -2.4 5.3 -2.2 5.9 Income tax result -4.5 0.8 -10.5 -3.0 Profit for the period 13.3 -2.4 31.4 8.8
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© Novem Group Public Balance sheet 06 February 2025 Page 19 Balance sheet (€m) 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 Total equity 83.6 97.8 Intangible assets 2.0 2.9 Pensions and similiar obligations 27.1 28.8 Property, plant and equipment 197.6 178.6 Other provisions 2.1 2.3 Trade receivables 54.3 44.0 Financial liabilities 248.6 249.2 Other non-current assets 14.8 16.9 Trade payables - - Deferred tax assets 4.6 16.6 Other liabilities 56.2 52.0 Deferred tax liabilities -0.8 1.3 Total non-current assets 273.3 259.0 Total non-current liabilities 333.2 333.5 Inventories 110.6 99.6 Tax liabilities 14.4 2.5 Trade receivables 39.1 41.4 Other provisions 46.4 34.9 Other receivables 28.2 22.1 Financial liabilities 1.1 1.0 Other current assets 17.5 13.6 Trade payables 40.1 31.4 Cash and cash equivalents 125.1 130.4 Other liabilities 75.2 65.0 Total current assets 320.5 307.2 Total current liabilities 177.0 134.9 Assets 593.8 566.1 Equity and liabilities 593.8 566.1
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© Novem Group Public Cash flow statement 06 February 2025 Page 20 Cash flow statement (€m) Q3 2023/24 Q3 2024/25 YTD 2023/24 YTD 2024/25 Profit for the period 13.3 -2.4 31.4 8.8 Income tax expense (+)/income (-) 2.1 4.4 8.3 9.0 Financial result (+)/(-) net 4.1 13.0 10.1 21.2 Depreciation, amortisation and impairment (+) 8.7 8.0 25.2 24.0 Other non-cash expenses (+)/income (-) 1.1 -12.0 -0.6 -3.9 Increase (-)/decrease (+) in inventories -5.7 5.0 6.8 0.4 Increase (-)/decrease (+) in trade receivables 3.4 -0.7 -1.2 3.0 Increase (-)/decrease (+) in other assets -1.2 2.9 5.6 5.2 Increase (-)/decrease (+) in deferred taxes 2.4 -5.3 2.2 -5.9 Increase (-)/decrease (+) in prepaid expenses/deferred income 0.3 1.1 -1.3 2.2 Increase (+)/decrease (-) in provisions -8.2 0.5 -4.4 -9.1 Increase (+)/decrease (-) in trade payables -17.0 -3.4 -21.9 -12.0 Increase (+)/decrease (-) in other liabilities 0.6 0.0 -10.9 -13.0 Gain (-)/loss (+) on disposals of non-current assets 0.0 - 0.0 0.0 Cash received (+) from/cash paid (-) for income taxes -4.2 -7.8 -11.6 -18.7 Cash flow from operating activities -0.3 3.6 37.9 11.2
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© Novem Group Public Cash flow statement (cont’d) 06 February 2025 Page 21 Cash flow statement (€m) Q3 2023/24 Q3 2024/25 YTD 2023/24 YTD 2024/25 Cash received (+) from disposals of property, plant and equipment 0.0 - 0.0 0.0 Cash paid (-) for investments in intangible assets -0.1 -0.2 -0.2 -0.5 Cash paid (-) for investments in property, plant and equipment -4.5 -3.3 -12.4 -12.5 Interest received (+) 1.0 1.1 4.3 3.7 Cash flow from investing activities -3.6 -2.3 -8.3 -9.3 Cash paid (-) for subsidies/grants - - -0.0 - Cash paid (-) for lease liabilities -2.7 -0.2 -7.7 0.8 Interest paid (-) -4.4 -4.0 -12.5 -13.1 Dividends paid (-) - - -49.5 - Cash flow from financing activities -7.1 -4.2 -69.7 -12.3 Net increase (+)/decrease (-) in cash and cash equivalents -11.0 -2.9 -40.1 -10.5 Effect of exchange rate fluctuations on cash and cash equivalents -0.5 0.8 -0.3 -0.7 Cash and cash equivalents at the beginning of the reporting period 136.6 132.4 165.5 141.5 Cash and cash equivalents at the end of the reporting period 125.1 130.4 125.1 130.4
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© Novem Group Public EBIT adjustments 06 February 2025 Page 22 EBIT adjustments (€m) Q3 2023/24 Q3 2024/25 YTD 2023/24 YTD 2024/25 Revenue 138.7 124.0 485.8 403.5 EBIT 15.3 9.8 48.6 33.1 EBIT margin 11.0% 7.9% 10.0% 8.2% Restructuring 0.7 0.0 5.2 0.0 Single impairments - - - 2.6 Others 0.7 0.2 0.8 0.5 Exceptional items 0.7 0.2 0.8 3.1 Discontinued operations - - - - Adjustments 1.4 0.2 6.0 3.1 Adj. EBIT 16.6 10.0 54.6 36.2 Adj. EBIT margin 12.0% 8.1% 11.2% 9.0%
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© Novem Group Public Page 2306 February 2025 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. EBIT margin is defined as Adj. EBIT divided by revenue ▪ Adj. EBITDA is defined as profit for the year before income tax result, financial result and amortisation, depreciation and write-downs 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 margin is defined as Adj. EBITDA divided by revenue ▪ Capital expenditure is defined as the sum of cash paid for investments in property, plant and equipment and cash paid for investments in intangible assets excluding currency translation effects ▪ Cash conversion is defined as free cash flow divided by Adj. EBITDA ▪ Days inventory outstanding (DIO) is defined by dividing inventories (as shown in the consolidated statement of financial position, but excluding tooling) by revenue generated from the sale of series trim elements in the last three months ▪ Days payables outstanding (DPO) is defined by dividing trade payables (as shown in the consolidated statement of financial position, but excluding tooling) by net costs series incurred in the three months ▪ Days sales outstanding (DSO) is defined by dividing trade receivables (as shown in the consolidated statement of financial position, but excluding tooling) by revenue generated from the sale of series trim elements in the last three months ▪ EBIT is defined as profit for the year before income tax result and financial result ▪ EBITDA is defined as profit for the year before income tax result, financial result and amortisation and depreciation ▪ Free cash flow is defined as the sum of cash flow from operating and investing activities ▪ Gross financial debt is defined as the sum of liabilities to banks and lease liabilities ▪ Net financial debt is defined as gross financial debt less cash and cash equivalents ▪ Net leverage ratio is defined as the ratio of net financial debt to Adj. EBITDA ▪ Total operating performance is defined as the sum of revenue and increase or decrease in finished goods ▪ Total working capital is defined as the sum of inventories, trade receivables and contract assets excluding expected losses less trade payables, tooling received advance payments received and other provisions related to tooling ▪ Trade working capital is defined as the sum of inventories non-tooling and trade receivables related to non-tooling less trade payables related to non-tooling
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© Novem Group Public Page 2406 February 2025 Further information and disclaimer Date of publication 06 February 2025 Contact investor.relations@novem.com | All information is constantly updated and available. Please visit the Investor Relations Portal on the Company website: https://ir.novem.com Editor Novem Group S.A. | 19, rue Edmond Reuter | 5326 Contern | Luxembourg | www.novem.com Financial information This presentation contains unaudited financial information for Novem, which may be subject to change. Disclaimer Novem Group S.A. (the “Company”, “Novem”) has prepared this presentation solely for your information. It should not be treated as giving investment advice. Neither the Company, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other person shall have any liability whatsoever for any direct or indirect losses arising from any use of this presentation. While the Company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external source, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate. This presentation contains forward-looking statements, which involve risks, uncertainties and assumptions that could cause actual results, performance or events to differ materially from those described in, or expressed or implied by, such statements. These statements reflect the Company’s current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “project” and “target”. No obligation is assumed to update any such statement. Numbers were rounded to one decimal. Due to rounding, the numbers presented may not add up precisely to the totals provided.
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Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg Email: investor.relations@novem.com www.novem.com