Interim report
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HY 2025/26 Interim Report 13 November 2025
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TABLE OF CONTENTS 1 GROUP OVERVIEW Key results 3 HY 2025/26 highlights 4 2 GROUP INTERIM MANAGEMENT REPORT Financial performance 5 Financial position 9 Cash flows 12 Segment reporting 15 Subsequent events and risks and opportunities 17 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS Consolidated statement of comprehensive income 18 Consolidated statement of financial position 19 Consolidated statement of cash flows 20 Consolidated statement of changes in equity 21 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS General information 22 Notes to consolidated statements of financial position 23 Notes to consolidated statements of other comprehensive income 27 Other disclosures 29 Responsibility statement 36 5 ADDITIONAL INFORMATION Financial calendar 37 Contact 37 Glossary 38 Disclaimer 39 NOVEM HY 2025/26 INTERIM REPORT 2 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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GROUP OVERVIEW Alternative Performance Measures (APMs) in the Group Interim Management Report for the first half of financial year 2025/26 In accordance with the European Securities and Mar- kets Authority (ESMA) guidelines on Alternative Perfor- mance Measures, the Group provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the APMs shown in the following table. The definitions and required disclosures of all APMs are provided in the glossary of this Interim Report. All mentioned APMs are used to track the Group’s operating performance. It is neither required by nor presented in accordance with IFRS. It is also not a measure of financial performance under IFRS and should not be considered as an alternative to other indicators of operating performance, cash flow or any other measure of performance derived in accordance with IFRS. Key results in € million Q2 2024/25 Q2 2025/26 HY 2024/25 HY 2025/26 Income statement Revenue 139.4 125.5 279.5 254.5 Adj. EBIT 12.0 7.7 26.2 15.4 Adj. EBIT margin (%) 8.6% 6.1% 9.4% 6.0% Adj. EBITDA 20.0 15.5 42.2 31.1 Adj. EBITDA margin (%) 14.3% 12.3% 15.1% 12.2% Cash flow Capital expenditure 4.5 2.4 9.5 4.3 Capital expenditure as % of revenue 3.3% 1.9% 3.4% 1.7% Free cash flow 3.6 15.8 0.6 17.2 in € million 31 Mar 25 30 Sep 25 Balance sheet Trade working capital 34.7 47.8 Total working capital 123.8 137.2 Net financial debt 148.2 138.7 Net leverage (x Adj. EBITDA) 1.8x 2.0x NOVEM HY 2025/26 INTERIM REPORT 3 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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HY 2025/26 highlights Challenging environment shapes first half of the year Revenue for the first six months of financial year 2025/26 totalled €254.5 million, representing a year- on-year decline of -8.9% compared to €279.5 million in prior year. At constant exchange rates, revenue would have been higher by 3.7%, with currency headwinds mainly driven by the US Dollar and Mexican Peso. Series revenue remained relatively stable at €232.8 million, down -2.7% from last year’s €239.3 million. In contrast, Tooling revenue fell sharply to €21.6 million (PY: €40.2 million), primarily due to a different project phasing. Adj. EBIT for the first half stood at €15.4 mil- lion (PY: €26.2 million), reflecting the impact of the weaker top line and translating into a margin of 6.0% for the period under review. While continued cost man- agement measures, particularly at the central office in Germany, started to take effect, they could only partly offset the revenue shortfall. Free cash flow for the first half improved markedly to €17.2 million, lifted by a strong Q2 performance, compared to €0.6 million in the prior year. New business secured with McLaren and Harley-Davidson Novem has secured a new platform by McLaren, marking another addition to the customer portfolio. Complementing this achievement, the acquisition of a pre-development project with Harley-Davidson opens the door to the two-wheeler market and creates oppor- tunities for diversification. NOVEM HY 2025/26 INTERIM REPORT 4 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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FINANCIAL PERFORMANCE in € million Q2 2024/25 Q2 2025/26 HY 2024/25 HY 2025/26 Revenue 139.4 125.5 279.5 254.5 Increase or decrease in finished goods and work in process 0.5 -0.0 2.4 0.4 Total operating performance 139.9 125.5 281.9 254.9 Other operating income 3.9 1.8 5.3 5.1 Cost of materials -72.1 -63.7 -140.1 -126.3 Personnel expenses -35.7 -35.0 -75.1 -73.2 Depreciation, amortisation and impairment -8.0 -7.8 -16.1 -15.7 Other operating expenses -16.1 -14.6 -32.6 -31.0 Operating result (EBIT) 11.9 6.3 23.3 13.8 Finance income 5.7 1.3 2.6 19.0 Finance costs -5.3 -3.9 -10.8 -8.2 Financial result 0.4 -2.6 -8.2 10.8 Income taxes -1.9 -1.6 -4.5 -3.2 Deferred taxes -1.2 0.6 0.7 -3.1 Income tax result -3.1 -0.9 -3.8 -6.3 Profit for the period attributable to the shareholders 9.2 2.8 11.2 18.3 Differences from currency translation -10.9 1.1 -10.7 -16.4 Items that may subsequently be reclassified to consolidated profit or loss -10.9 1.1 -10.7 -16.4 Actuarial gains and losses from pensions and similar obligations (before taxes) - - - - Taxes on actuarial gains and losses from pensions and similar obligations - - - - Items that will not subsequently be reclassified to consolidated profit or loss - - - - Other comprehensive income/loss, net of tax -10.9 1.1 -10.7 -16.4 Total comprehensive income/loss for the period attributable to the shareholders -1.7 3.9 0.6 2.0 Earnings per share attributable to the equity holders of the parent (in €) basic 0.21 0.06 0.26 0.43 diluted 0.21 0.06 0.26 0.43 NOVEM HY 2025/26 INTERIM REPORT 5 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Revenue Total revenue of €254.5 million in the first six months of financial year 2025/26 fell short of prior year by €-25.0 million or -8.9% compared to the same period last year. Based on prior year (constant) exchange rates, revenue would have been higher by 3.7%. This currency impact was mainly driven by the US Dollar and the Mexican Peso. On a segmental basis, revenue in the first half of financial year 2025/26 was generated in Americas (€129.9 million), followed by Europe (€96.8 million) and Asia (€27.7 million). Revenue development in € million HY 2024/25 HY 2025/26 % change Revenue Series 239.3 232.8 -2.7% Revenue Tooling 40.2 21.6 -46.1% Revenue 279.5 254.5 -8.9% Revenue Series Revenue Series decreased slightly in the first half of 2025/26 to €232.8 million and therefore came in -2.7% lower than prior year (HY 2024/25: €239.3 million). Revenue Series accounted for 91.5% of total revenue and remained the key pillar of the business. Revenue Tooling Revenue Tooling recorded at €21.6 million in the first six months of the financial year 2025/26 (HY 2024/25: €40.2 million), resulting in a year-on-year decrease of €-18.5 million (-46.1%), mainly because of a different project phasing. Change in finished goods and work in process Change of finished goods and work in process decreased by €-2.0 million (-82.4%) from €2.4 mil - lion last year to €0.4 million in the same period of the current financial year 2025/26 due to lower finished goods (€-2.6 million) and lower tooling inventories (€-0.1 million); partly offset by higher profit in stock elimination (€+0.5 million) and higher work in process (€+0.2 million). Other operating income Other operating income slightly decreased by €-0.2 mil- lion from €5.3 million in the first six months of financial year 2024/25 to €5.1 million in the first six months of financial year 2025/26. This decline was mainly driven by a negative deviation in income from release of sales accruals of €-0.5 million; partly compensated by higher income from exchange gains of €0.2 million and higher income from other periods of €0.1 million. Cost of materials Cost of materials improved from €-140.1 million in the first half of financial year 2024/25 to €-126.3 million in the first six months of the current year, resulting in a year-on-year change of -9.8%. The cost of materials to output (total operating performance) ratio decreased by -0.2 percentage points to 49.5% in the first half of financial year 2025/26 (HY 2024/25: 49.7%). Personnel expenses Personnel expenses recorded at €-73.2 million in the first half of financial year 2025/26, down by €1.9 mil- lion or -2.6% compared to the same reporting period last year (HY 2024/25: €-75.1 million). As a percentage of total operating performance, personnel expenses increased by 2.1 percentage points year-on-year to 28.7%. The deviation was again predominantly driven by lower revenue and negatively impacted by poor cost coverage as costs could not be adjusted in the same magnitude as the revenues declined. Depreciation, amortisation and impairment Novem reported depreciation, amortisation and impair- ment of €-15.7 million in the first six months of financial year 2025/26, a decrease of €0.3 million or -2.1% com- pared to prior year. The decline was mainly attributable to the reduced depreciation on other equipment (€+0.3 million). Other operating expenses Other operating expenses of €-31.0 million in the first six months of financial year 2025/26 recorded slightly below prior year’s figure of €-32.6 million. The decrease was primarily driven by lower allowances on receiva - bles, partly compensated by higher legal and advisory fees. NOVEM HY 2025/26 INTERIM REPORT 6 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Finance income and costs For the first half of financial year 2025/26, the financial result amounted to €10.8 million compared to €-8.2 million in the last year. Novem reported finance income of €19.0 million in the first half of 2025/26 and thus came in €16.5 million above the first six months of last year. This deviation was predominantly driven by favourable currency trans- lation effects but negatively affected by lower interest income. Finance costs for the first six months of financial year 2025/26 recorded at €-8.2 million, marking a decrease of €2.6 million compared to the same reporting period last year (HY 2024/25: €-10.8 million). This deviation was mainly attributable to lower bank interest expenses compared to previous year. Income tax result Despite a decline in EBIT, the positive financial result led to an overall increase in earnings before taxes. Conse- quently, the income tax expense rose from €-3.8 million last year to €-6.3 million in the first six months of the current financial year 2025/26. NOVEM HY 2025/26 INTERIM REPORT 7 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Adjustments Adj. EBIT Adj. EBIT represents the operating result adjusted for exceptional non-recurring items. As such, Novem adjusts certain one-off effects to better show the underlying operating performance of the Group. The adjustments made follow a pre-defined and transpar - ent approach and form part of the regular monthly closing and reporting routines. Adjustments Adjustments of €1.6 million in the first half of the finan- cial year 2025/26 were lower than prior year by €-1.3 million and contained €1.3 million restructuring costs for downsizing the European footprint as well as €0.3 million project costs. The Adj. EBIT margin of 6.0% for the first six months of 2025/26 fell short of last year’s figure of 9.4% by -3.3 percentage points. Therefore, the Adj. EBITDA margin of 12.2% also decreased compared to prior year’s mar- gin of 15.1%. in € million Q2 2024/25 Q2 2025/26 HY 2024/25 HY 2025/26 Revenue 139.4 125.5 279.5 254.5 EBIT 11.9 6.3 23.3 13.8 EBIT margin 8.6% 5.0% 8.3% 5.4% Restructuring 0.0 1.1 0.0 1.3 Single impairments - - 2.6 - Others 0.0 0.3 0.3 0.3 Exceptional items 0.0 0.3 2.9 0.3 Discontinued operations - - - - Adjustments 0.1 1.4 2.9 1.6 Adj. EBIT 12.0 7.7 26.2 15.4 Adj. EBIT margin 8.6% 6.1% 9.4% 6.0% Depreciation and amortisation 8.0 7.8 16.1 15.7 Adj. EBITDA 20.0 15.5 42.2 31.1 Adj. EBITDA margin 14.3% 12.3% 15.1% 12.2% NOVEM HY 2025/26 INTERIM REPORT 8 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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FINANCIAL POSITION in € million 31 Mar 25 30 Sep 25 Intangible assets 3.0 2.7 Property, plant and equipment 171.4 159.1 Trade receivables 45.1 39.6 Other non-current assets 17.1 13.2 Deferred tax assets 5.3 5.1 Total non-current assets 241.9 219.6 Inventories 95.3 94.4 Trade receivables 37.2 44.1 Other receivables 28.3 20.0 Other current assets 15.3 15.4 Cash and cash equivalents 150.1 153.4 Total current assets 326.2 327.3 Assets 568.1 546.9 in € million 31 Mar 25 30 Sep 25 Share capital 0.4 0.4 Capital reserves 539.6 539.6 Retained earnings/accumulated losses -446.5 -428.2 Currency translation reserve 0.4 -15.9 Total equity 93.9 95.9 Pensions and similar obligations 26.3 26.5 Other provisions 2.3 2.8 Financial liabilities 249.3 - Other liabilities 46.4 39.8 Deferred tax liabilities 1.7 4.8 Total non-current liabilities 326.0 73.8 Tax liabilities 1.1 1.7 Other provisions 29.2 28.9 Financial liabilities 1.0 250.5 Trade payables 49.1 32.4 Other liabilities 67.9 63.7 Total current liabilities 148.2 377.1 Equity and liabilities 568.1 546.9 Assets Equity and liabilities NOVEM HY 2025/26 INTERIM REPORT 9 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Total assets Total assets amounted to €546.9 million as of 30 Sep- tember 2025 and marked a decrease of €-21.2 million or -3.7% compared to the end of last financial year 2024/25 (31 March 2025: €568.1 million). Non-current assets Non-current assets decreased from €241.9 million as of 31 March 2025 by -9.2% to €219.6 million as of 30 September 2025. This movement resulted primar - ily from a decline in property, plant and equipment of €-12.3 million or -7.2%, mainly due to the depreciation effect in the reporting period, followed by a decline in trade receivables (€-5.5 million) and other non-current assets (€-4.0 million). Current assets Current assets remained largely unchanged at €327.3 million compared to the previous balance sheet date (31 March 2025: €326.2 million), representing a slight increase of €1.1 million or 0.3%. This change was mainly driven by higher trade receivables of €6.9 million or 18.7% (31 March 2025: €37.2 million) and a higher cash position (€+3.3 million). The decreased other receivables had an offsetting effect of €-8.3 million due to lower tax receivables (€-5.8 million) and VAT refunds (€-2.6 million). Through non-recourse factoring, Novem sold €37.4 million trade receivables as of 30 September 2025, falling below the volume of €41.2 million as of 31 March 2025 by €-3.8 million. Working capital in € million 31 Mar 25 30 Sep 25 % change Inventories 53.2 50.1 -5.8% Trade receivables 25.3 27.5 8.8% Trade payables -43.8 -29.8 -31.9% Trade working capital 34.7 47.8 37.7% Tooling net 74.8 77.4 3.4% Contract assets 14.3 12.0 -15.7% Total working capital 123.8 137.2 10.8% Total working capital increased to €137.2 million as of 30 September 2025, up 10.8% compared to €123.8 million as of 31 March 2025. This increase was primar- ily due to significantly lower trade payables as well as higher tooling net and trade receivables with an offset- ting effect in inventories and contract assets. The most significant changes in tooling net related to an increase in tooling trade receivables of €5.0 million, lower tooling related trade payables of €2.7 million, higher tooling inventory of €2.1 million and a decrease in the tooling- related deferred income position of €5.8 million due to project closures and the switch to series production. Consequently, total working capital in % of L TM revenue increased by 3.7 percentage points to 26.6% (31 March 2025: 22.9%). Equity As of 30 September 2025, the equity position improved to €95.9 million from €93.9 million at the end of the last financial year 2024/25. The increase was attributable to the profit generated in HY 2025/26 (€+18.3 million), partially offset by the drop in the currency translation reserve, which fell by €-16.4 million to €-15.9 million as of 30 September 2025 (31 March 2025: €0.4 million). Non-current liabilities Non-current liabilities declined from €326.0 million as of 31 March 2025 by €-252.1 million to €73.8 million as of 30 September 2025. The significant reduction was primarily due to the reclassification of financial liabilities to current liabilities, as the term loan has a remaining maturity of less than one year, maturing in July 2026. Net financial debt in € million 31 Mar 25 30 Sep 25 % change Liabilities to banks 250.3 250.5 0.1% Lease liabilities 48.1 41.5 -13.6% Gross financial debt 298.3 292.1 -2.1% Cash and cash equivalents -150.1 -153.4 2.2% Net financial debt 148.2 138.7 -6.5% Gross financial debt as of 30 September 2025 amounted to €292.1 million and thus posted a decrease of €-6.3 million, mainly attributable to the decline in lease liabilities of €-6.5 million. Cash and cash equiva- lents increased by €3.3 million compared to the end of the previous financial year 2024/25. Both effects are accountable for the decrease of the net financial debt position in the amount of €-9.6 million. NOVEM HY 2025/26 INTERIM REPORT 10 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Net leverage in € million 31 Mar 25 30 Sep 25 Net financial debt 148.2 138.7 L TM Adj. EBITDA 81.0 69.9 Net leverage ratio 1.8x 2.0x The net leverage ratio is defined as net financial debt divided by Adj. EBITDA for the last 12 months. The ratio rose from 1.8x Adj. EBITDA at the end of the financial year 2024/25 to 2.0x Adj. EBITDA as of 30 September 2025 due to the decreased L TM Adj. EBITDA. Current liabilities Current liabilities amounted to €377.1 million as of 30 September 2025, up by €229.0 million compared to 31 March 2025. The increase was mainly attributable to higher financial liabilities of €249.6 million due to the reclassification of the term loan from non-current to current liabilities. The €-16.7 million decrease in trade payables had an offsetting effect. NOVEM HY 2025/26 INTERIM REPORT 11 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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in € million Q2 2024/25 Q2 2025/26 Profit for the period 9.2 2.8 Income tax expense (+)/income (-) 1.9 1.6 Financial result (+)/(-) net 4.1 2.6 Depreciation, amortisation and impairment (+) 8.0 7.8 Other non-cash expenses (+)/income (-) 6.1 0.1 Increase (-)/decrease (+) in inventories 1.5 1.5 Increase (-)/decrease (+) in trade receivables 4.8 5.8 Increase (-)/decrease (+) in other assets -6.1 4.8 Increase (-)/decrease (+) in deferred taxes 1.2 -0.6 Increase (-)/decrease (+) in prepaid expenses/deferred income 3.3 2.9 Increase (+)/decrease (-) in provisions -7.1 3.4 Increase (+)/decrease (-) in trade payables -8.1 -10.9 Increase (+)/decrease (-) in other liabilities -5.9 -2.4 Gain (-)/loss (+) on disposals of non-current assets 0.0 0.0 Cash received (+) from/cash paid (-) for income taxes -6.0 -2.0 Cash flow from operating activities 6.9 17.3 Cash received (+) from disposals of property, plant and equipment - 0.0 Cash paid (-) for investments in intangible assets -0.2 -0.0 Cash paid (-) for investments in property, plant and equipment -4.3 -2.4 Interest received (+) 1.2 0.9 Cash flow from investing activities -3.3 -1.5 in € million Q2 2024/25 Q2 2025/26 Cash paid (-) for lease liabilities -0.0 -2.6 Interest paid (-) -4.5 -3.2 Cash flow from financing activities -4.6 -5.8 Net increase (+)/decrease (-) in cash and cash equivalents -0.9 10.0 Effect of exchange rate fluctuations on cash and cash equivalents -1.0 0.2 Cash and cash equivalents at the beginning of the reporting period 134.4 143.2 Cash and cash equivalents at the end of the reporting period 132.4 153.4 CASH FLOWS NOVEM HY 2025/26 INTERIM REPORT 12 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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in € million HY 2024/25 HY 2025/26 Profit for the period 11.2 18.3 Income tax expense (+)/income (-) 4.5 3.2 Financial result (+)/(-) net 8.2 -10.8 Depreciation, amortisation and impairment (+) 16.1 15.7 Other non-cash expenses (+)/income (-) 8.2 15.8 Increase (-)/decrease (+) in inventories -4.7 -0.9 Increase (-)/decrease (+) in trade receivables 3.7 -3.6 Increase (-)/decrease (+) in other assets 2.2 1.8 Increase (-)/decrease (+) in deferred taxes -0.7 3.1 Increase (-)/decrease (+) in prepaid expenses/deferred income 1.1 3.0 Increase (+)/decrease (-) in provisions -9.7 2.0 Increase (+)/decrease (-) in trade payables -8.6 -29.4 Increase (+)/decrease (-) in other liabilities -13.0 -2.0 Gain (-)/loss (+) on disposals of non-current assets 0.0 0.0 Cash received (+) from/cash paid (-) for income taxes -10.9 3.4 Cash flow from operating activities 7.6 19.6 Cash received (+) from disposals of property, plant and equipment 0.0 0.1 Cash paid (-) for investments in intangible assets -0.4 -0.1 Cash paid (-) for investments in property, plant and equipment -9.1 -4.2 Interest received (+) 2.5 1.8 Cash flow from investing activities -7.0 -2.4 in € million HY 2024/25 HY 2025/26 Cash paid (-) for lease liabilities 1.0 -6.5 Interest paid (-) -9.1 -6.6 Cash flow from financing activities -8.1 -13.1 Net increase (+)/decrease (-) in cash and cash equivalents -7.6 4.1 Effect of exchange rate fluctuations on cash and cash equivalents -1.5 -0.7 Cash and cash equivalents at the beginning of the reporting period 141.5 150.1 Cash and cash equivalents at the end of the reporting period 132.4 153.4 NOVEM HY 2025/26 INTERIM REPORT 13 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Cash flow from operating activities Cash flow from operating activities showed the largest deviation and developed positively from €7.6 million in the first half of last year by €12.0 million to €19.6 mil- lion in the current half year. The development is mainly attributable to a year-on-year increase of €14.3 million in cash received from income taxes, driven both by tax refunds and by lower advance tax payments compared to previous year. The positive effect was partly offset by a higher cash out-flow for trade payables (€-20.7 million) and changes in trade receivables (€-7.3 million). Cash flow from investing activities Cash out-flow for investing activities reached €-2.4 million in the first half of the current financial year (PY: €-7.0 million). The cash flow was characterised by lower investments in property, plant and equipment in the amount of €5.0 million. Cash flow from financing activities Cash out-flow for financing activities increased by €-5.0 million to €-13.1 million in the first half year of 2025/26 (PY: €-8.1 million). Lease liabilities saw a similar cash-effective reduction compared to last year, while cumulative currency translation effects of €-7.6 million year-on-year were the main driver of the devia- tion. This was partially offset by a lower out-flow for interests of €2.5 million. NOVEM HY 2025/26 INTERIM REPORT 14 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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SEGMENT REPORTING Europe Americas Asia Total segments Other/consolidation Group in € million Q2 2024/25 Q2 2025/26 Q2 2024/25 Q2 2025/26 Q2 2024/25 Q2 2025/26 Q2 2024/25 Q2 2025/26 Q2 2024/25 Q2 2025/26 Q2 2024/25 Q2 2025/26 External revenue 47.5 41.7 75.4 68.5 16.6 15.4 139.4 125.5 - - 139.4 125.5 Revenue between segments 11.1 4.8 17.3 22.5 4.2 3.4 32.6 30.7 -32.6 -30.7 - - Total revenue 58.6 46.5 92.6 91.0 20.7 18.8 171.9 156.3 -32.6 -30.7 139.4 125.5 Adj. income/expenses from operations (except revenue and depreciation and amortisation) -61.7 -50.1 -72.6 -73.1 -17.7 -17.6 -152.0 -140.8 32.6 30.7 -119.4 -110.1 Adj. EBITDA -3.2 -3.6 20.1 17.9 3.0 1.2 20.0 15.5 - - 20.0 15.5 Depreciation and amortisation -3.7 -3.7 -2.7 -2.9 -1.5 -1.2 -8.0 -7.8 - - -8.0 -7.8 Adj. EBIT -6.9 -7.3 17.3 15.0 1.6 -0.0 12.0 7.7 - - 12.0 7.7 Adjustments -0.1 -1.4 - - - - -0.1 -1.4 - - -0.1 -1.4 Operating result (EBIT) -7.0 -8.7 17.3 15.0 1.6 -0.0 11.9 6.3 - - 11.9 6.3 Europe Americas Asia Total segments Other/consolidation Group in € million HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 External revenue 98.0 96.8 150.4 129.9 31.0 27.7 279.5 254.5 - - 279.5 254.5 Revenue between segments 26.6 9.3 36.1 44.3 9.5 8.1 72.2 61.7 -72.2 -61.7 - - Total revenue 124.7 106.2 186.5 174.2 40.5 35.8 351.6 316.2 -72.2 -61.7 279.5 254.5 Adj. income/expenses from operations (except revenue and depreciation and amortisation) -125.2 -109.3 -148.9 -143.1 -35.3 -32.7 -309.4 -285.1 72.2 61.7 -237.2 -223.4 Adj. EBITDA -0.5 -3.1 37.6 31.2 5.1 3.0 42.2 31.1 - - 42.2 31.1 Depreciation and amortisation -7.5 -7.5 -5.6 -5.7 -2.9 -2.5 -16.1 -15.7 - - -16.1 -15.7 Adj. EBIT -8.1 -10.6 32.0 25.4 2.2 0.5 26.2 15.4 - - 26.2 15.4 Adjustments -2.9 -1.6 - - - - -2.9 -1.6 - - -2.9 -1.6 Operating result (EBIT) -11.0 -12.2 32.0 25.4 2.2 0.5 23.3 13.8 - - 23.3 13.8 NOVEM HY 2025/26 INTERIM REPORT 15 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Europe External revenue in Europe decreased by -1.2% or €-1.2 million from €98.0 million in the first six months of financial year 2024/25 to €96.8 million in the same period of 2025/26. Revenue from Europe accounted for 38.1% of total revenue in the first half of the financial year 2025/26 (PY: 35.1%). In the first six months of 2025/26, Adj. EBIT of €-10.6 million in Europe continues to make loss and recorded €-2.5 million below last year (HY 2024/25: €-8.1 million). Therefore, the Adj. EBIT margin also worsened from -6.5% last year to -10.0%. Operating performance in Europe was again affected by poor top line development, while fixed costs at the cen- tral office in Vorbach, in particular, could not be scaled down in line with the decline in revenue. However, con- tinued cost management and restructuring measures helped to partially mitigate the negative impacts. Americas External revenue in Americas dropped by -13.6% or €-20.5 million from €150.4 million in the first half of 2024/25 to €129.9 million in the first half of 2025/26. The currency translation impact totalled €-7.7 million. Americas contributed 51.1% of total revenue in the first half of 2025/26 (PY: 53.8%). Adj. EBIT in Americas stood at €25.4 million for the first six months of 2025/26, which shows a drop of -20.6% year-on-year (HY 2024/25: €32.0 million). As a consequence, the Adj. EBIT margin also decreased from 17.2% last year to 14.6%. The unfavourable project phasing led to a weak Tooling revenue development, while Series revenue increased compared to prior year. The operating result was signif- icantly impacted by an adverse product mix, US tariffs and a negative FX effect, partially offset by customer compensation. Asia External revenue in Asia declined from €31.0 million to €27.7 million in the first half of 2025/26, a decrease compared to prior year by -10.6% or €-3.3 million. The effect of currency translation amounted to €-1.7 million. Revenue from Asia equalled 10.9% of total rev - enue in the first six months of financial year 2025/26 (PY: 11.1%). In Asia, Adj. EBIT of €0.5 million in the first half of financial year 2025/26 fell short of prior year by -76.8% (HY 2024/25: €2.2 million). As a consequence, Adj. EBIT margin decreased from 5.5% last year to 1.4%. Revenue in Asia was negatively affected by Series busi- ness as a consequence of persistently weak call-offs for BMW X5 following a temporary production halt as well as subdued demand for Mercedes-Benz E-class. in € million HY 2024/25 HY 2025/26 % change External revenue 150.4 129.9 -13.6% Revenue between segments 36.1 44.3 22.8% Total revenue 186.5 174.2 -6.6% Adj. EBIT 32.0 25.4 -20.6% Adj. EBIT margin 17.2% 14.6% in € million HY 2024/25 HY 2025/26 % change External revenue 31.0 27.7 -10.6% Revenue between segments 9.5 8.1 -14.9% Total revenue 40.5 35.8 -11.6% Adj. EBIT 2.2 0.5 -76.8% Adj. EBIT margin 5.5% 1.4% in € million HY 2024/25 HY 2025/26 % change External revenue 98.0 96.8 -1.2% Revenue between segments 26.6 9.3 -64.9% Total revenue 124.7 106.2 -14.8% Adj. EBIT -8.1 -10.6 30.9% Adj. EBIT margin -6.5% -10.0% NOVEM HY 2025/26 INTERIM REPORT 16 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Subsequent events There were no events or developments in the period from the balance sheet date as of 30 September 2025 to the publication date on 13 November 2025 that would have materially affected the recognition or measurement of Novem’s assets and liabilities. Risks and opportunities An assessment of risks and opportunities for Novem showed no significant changes to the risk-related disclosures as of and for the financial year ended 31 March 2025. Herewith reference is being made to the Annual Finan- cial Report 2024/25 on risks and opportunities, which can be accessed on the Investor Relations website of Novem in the section Reports & Presentations. SUBSEQUENT EVENTS AND RISKS AND OPPORTUNITIES NOVEM HY 2025/26 INTERIM REPORT 17 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in € thousand HY 2024/25 HY 2025/26 Revenue 279,470 254,476 Increase or decrease in finished goods and work in process 2,443 429 Total operating performance 281,913 254,905 Other operating income 5,268 5,051 Cost of materials -140,084 -126,291 Personnel expenses -75,123 -73,189 Depreciation, amortisation and impairment -16,059 -15,730 Other operating expenses -32,635 -30,980 Operating result (EBIT) 23,280 13,767 Finance income 2,568 19,020 Finance costs -10,785 -8,187 Financial result -8,217 10,833 Income taxes -4,516 -3,200 Deferred taxes 679 -3,066 Income tax result -3,837 -6,266 Profit for the period attributable to the shareholders 11,227 18,334 Differences from currency translation -10,664 -16,360 Items that may subsequently be reclassified to consolidated profit or loss -10,664 -16,360 Actuarial gains and losses from pensions and similar obligations (before taxes) - - Taxes on actuarial gains and losses from pensions and similar obligations - - Items that will not subsequently be reclassified to consolidated profit or loss - - Other comprehensive income/loss, net of tax -10,664 -16,360 Total comprehensive income/loss for the period attributable to the shareholders 563 1,974 Earnings per share attributable to the equity holders of the parent (in €) basic 0.26 0.43 diluted 0.26 0.43 for the half year ended 30 September 2025 (unaudited) NOVEM HY 2025/26 INTERIM REPORT 18 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION in € thousand 31 Mar 25 30 Sep 25 Intangible assets 2,987 2,696 Property, plant and equipment 171,431 159,109 Trade receivables 45,121 39,578 Other non-current assets 17,108 13,152 Deferred tax assets 5,267 5,064 Total non-current assets 241,914 219,598 Inventories 95,285 94,378 Trade receivables 37,171 44,108 Other receivables 28,334 20,008 Other current assets 15,270 15,388 Cash and cash equivalents 150,097 153,411 Total current assets 326,156 327,294 Assets 568,070 546,892 in € thousand 31 Mar 25 30 Sep 25 Share capital 430 430 Capital reserves 539,594 539,594 Retained earnings/accumulated losses -446,514 -428,180 Currency translation reserve 434 -15,926 Total equity 93,944 95,918 Pensions and similar obligations 26,316 26,512 Other provisions 2,273 2,776 Financial liabilities 249,288 - Other liabilities 46,366 39,764 Deferred tax liabilities 1,716 4,782 Total non-current liabilities 325,959 73,834 Tax liabilities 1,056 1,660 Other provisions 29,216 28,891 Financial liabilities 984 250,539 Trade payables 49,061 32,399 Other liabilities 67,851 63,652 Total current liabilities 148,168 377,141 Equity and liabilities 568,070 546,892 Assets Equity and liabilities as of 30 September 2025 (unaudited) NOVEM HY 2025/26 INTERIM REPORT 19 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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CONSOLIDATED STATEMENT OF CASH FLOWS in € thousand HY 2024/25 HY 2025/26 Profit for the period 11,227 18,334 Income tax expense (+)/income (-) 4,516 3,200 Financial result (+)/(-) net 8,217 -10,833 Depreciation, amortisation and impairment (+) 16,059 15,730 Other non-cash expenses (+)/income (-) 8,173 15,758 Increase (-)/decrease (+) in inventories -4,655 -897 Increase (-)/decrease (+) in trade receivables 3,721 -3,558 Increase (-)/decrease (+) in other assets 2,236 1,793 Increase (-)/decrease (+) in deferred taxes -679 3,066 Increase (-)/decrease (+) in prepaid expenses/deferred income 1,066 3,035 Increase (+)/decrease (-) in provisions -9,692 1,958 Increase (+)/decrease (-) in trade payables -8,645 -29,364 Increase (+)/decrease (-) in other liabilities -13,039 -2,012 Gain (-)/loss (+) on disposals of non-current assets 10 26 Cash received (+) from/cash paid (-) for income taxes -10,941 3,353 Cash flow from operating activities 7,571 19,589 Cash received (+) from disposals of property, plant and equipment 1 53 Cash paid (-) for investments in intangible assets -380 -75 Cash paid (-) for investments in property, plant and equipment -9,149 -4,193 Interest received (+) 2,531 1,805 Cash flow from investing activities -6,998 -2,410 in € thousand HY 2024/25 HY 2025/26 Cash paid (-) for lease liabilities 1,022 -6,486 Interest paid (-) -9,149 -6,629 Cash flow from financing activities -8,127 -13,115 Net increase (+)/decrease (-) in cash and cash equivalents -7,553 4,064 Effect of exchange rate fluctuations on cash and cash equivalents -1,524 -750 Cash and cash equivalents at the beginning of the reporting period 141,514 150,097 Cash and cash equivalents at the end of the reporting period 132,436 153,411 for the half year ended 30 September 2025 (unaudited) NOVEM HY 2025/26 INTERIM REPORT 20 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 30 September 2025 (unaudited) in € thousand Share capital Capital reserves Retained earnings/ accumulated losses Currency translation reserve Equity Balance as of 01 Apr 24 430 539,594 -459,222 9,085 89,887 Profit or loss for the year - - 11,227 - 11,227 Other comprehensive income or loss - - - -10,664 -10,664 Comprehensive income or loss for the year - - 11,227 -10,664 563 Balance as of 30 Sep 24 430 539,594 -447,995 -1,579 90,451 Balance as of 01 Apr 25 430 539,594 -446,514 434 93,944 Profit or loss for the year - - 18,334 - 18,334 Other comprehensive income or loss - - - -16,360 -16,360 Comprehensive income or loss for the year - - 18,334 -16,360 1,974 Balance as of 30 Sep 25 430 539,594 -428,180 -15,926 95,918 NOVEM HY 2025/26 INTERIM REPORT 21 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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NOTES TO CONSOLIDATED INTERIM STATEMENTS 1 General information 1.1 Reporting entity Novem Group S.A. (hereinafter also referred to as the “Company”) is domiciled in Contern, Luxembourg, and is registered in the commercial register of Luxembourg under register file number B 162.537. The Company’s registered office is at 19, rue Edmond Reuter, 5326 Contern, Luxembourg. The Company’s financial year is from 1 April to 31 March of the following year (12-month period). The consolidated financial statements include Novem and its subsidiaries (hereinafter also referred to as “Novem” or the “Group”). Novem operates as a developer, supplier and system supplier for trim parts and decorative functional ele - ments in vehicle interiors as well as technology-match- ing exterior parts in the premium sector. The products combine valuable raw materials with the latest technol- ogy and processing. Typically, the products are used as instrument panels, impact-resistant trim parts in the centre console, door trims, beltlines and decorative functional elements in the car interior. 1.2 Basis of preparation and presentation method These interim financial statements for the six months ended 30 September 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting and comply with the International Financial Reporting Standards (IFRS) Accounting Standards as adopted by the European Union. They should be read in conjunction with the Group’s last annual consolidated financial statements as at and for the year ended 31 March 2025. They do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS. However, selected explanatory notes are included to explain events and transactions that are significant to understanding the changes in the Group’s financial position and performance since the last annual consolidated financial statements. The consolidated interim financial statements and the Group Interim Management Report have not been audited or reviewed by the Group auditor. These interim financial statements were authorised for issue by the Management Board on 13 November 2025. Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group’s annual consoli - dated financial statements as at and for the year ended 31 March 2025. Income tax expense is recognised in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year. The Group observed all standards and interpretations adopted by the International Accounting Standards Board (IASB) and by the EU that are mandatory as of 1 January 2025. The following standards were initially adopted in financial year 2025/26 and had negligible effects on the Group’s accounting: • Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability In preparing these interim financial statements, man - agement has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual consolidated finan- cial statements. NOVEM HY 2025/26 INTERIM REPORT 22 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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2 Notes to consolidated statements of financial position 2.1 Property, plant and equipment in € thousand 31 Mar 25 30 Sep 25 Land, leasehold rights and buildings, including buildings on third-party land 82,126 77,872 Thereof right-of-use assets from leases 38,278 35,125 Technical equipment and machinery 71,025 63,593 Thereof right-of-use assets from leases 18 14 Other equipment, operating and office equipment 11,523 10,280 Thereof right-of-use assets from leases 4,764 3,882 Advance payments and assets under construction 6,757 7,364 Property, plant and equipment 171,431 159,109 Property, plant and equipment include right-of-use assets due to the application of IFRS 16 (Leases). Please refer to section 4.5 for additional information on future lease payments. Novem’s property, plant and equipment amounted to €159,109 thousand as of 30 September 2025 (31 March 2025: €171,431 thousand). The decrease was mainly due to straight-line depreciation, with offsetting effects resulting from advance payments for assets under construction. There were no impairment losses or reversals of impair- ment losses in both the current and previous reporting periods. 2.2 Inventories in € thousand 31 Mar 25 30 Sep 25 Raw materials and consumables 31,124 29,754 Work in process 9,910 10,161 Finished goods and merchandise 12,135 10,155 Tools 40,837 42,932 Advance payments for tools 1,240 1,330 Advance payments for raw materials 39 46 Inventories 95,285 94,378 The majority of inventories consisted of tools as well as raw materials and consumables. Inventories that are expected to be turned over within 12 months amounted to €94,378 thousand (31 March 2025: €95,285 thousand). As of 30 September 2025, the inventories included write-downs amounting to €4,861 thousand (31 March 2025: €4,931 thousand). The change is reflected in increase or decrease in fin - ished goods and work in process and cost of materials. In the case of write-downs, marketability, age as well as all apparent storage and inventory risks are taken into account. Since there is no alternative use option for the finished parts on stock as of the reporting date, for which there are also firm purchase commitments by the OEMs, an adjustment was made to the inventories in the amount of €8,939 thousand (31 March 2025: €8,665 thousand), which is reflected in decrease in finished goods and work in process based on recognition of revenue over time under IFRS 15, together with the recognition of contract assets amounting to €9,962 thousand (31 March 2025: €10,162 thousand), which is reflected in revenue. 2.3 Trade receivables in € thousand 31 Mar 25 30 Sep 25 Trade receivables 82,609 84,004 Expected credit losses on trade receivables -317 -318 Trade receivables 82,292 83,686 Non-current 45,121 39,578 Current 37,171 44,108 Trade receivables are mainly receivables from con - tracts with customers. The non-current receivables, which consist of tooling amortisation receivables, declined to €39,578 thousand (31 March 2025: €45,121 thousand), mainly attribut - able to the settlement of outstanding balances related to existing customer agreements. On the contrary, current receivables increased to €44,108 thousand (31 March 2025: €37,171 thousand), mainly driven by higher operational activity toward the end of the first half year, resulting in elevated closing balances despite a decline in overall revenue during the period. NOVEM HY 2025/26 INTERIM REPORT 23 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Factoring Two of the Group’s subsidiaries, Novem Car Interior Design GmbH and Novem Car Interior Design Inc., par - ticipate in a revolving multi-seller securitisation vehicle for their trade receivables. In conjunction with a factoring agreement, receivables were sold to a bank at a purchase price of €37,368 thousand as of 30 September 2025 (31 March 2025: €41,214 thousand), of which €900 thousand (31 March 2025: €900 thousand) represented a limited Seller Guarantee (2% of the average outstanding nominal amount of the European sold receivables). The Seller Guarantee represents the Group’s maximum exposure to any losses in respect of trade receivables previously sold under the factoring program. These receivables were carried at fair value through profit or loss until their disposal. The Group concluded that it does not control, and there- fore should not consolidate, the securitisation vehicle. Taken as a whole, the Group does not have power over the relevant activities of the securitisation vehicle. Expected credit losses Trade receivables are written down in full or in part when there are indications that they are not recover - able. Furthermore, in accordance with IFRS 9, expected credit losses for trade receivables not measured at fair value through profit or loss are calculated on a portfolio basis. For this purpose, Novem groups the receivables by individual customers. The expected default rates for each counterparty are provided by an external rating agency. This individual probability of default per cus - tomer is applied uniformly across the Group. Current external credit information and ratings that reflect the prevalent expectations regarding the potential impact of global economic developments were used for the consolidated interim financial statements as of 30 Sep- tember 2025. An additional adjustment of the valuation allowance is thus not required under this model. 2.4 Cash and cash equivalents in € thousand 31 Mar 25 30 Sep 25 Cash on hand 29 27 Cash at banks 150,068 153,384 Cash and cash equivalents 150,097 153,411 Cash and cash equivalents are not subject to any restrictions. The amount corresponds to the value shown in the Consolidated statement of cash flows. Cash and cash equivalents are concentrated at Novem Beteiligungs GmbH, which operates a group-wide cash pooling system. 2.5 Equity Please refer to the Consolidated statement of changes in equity for detailed information on changes in con - solidated equity. Share capital The share capital of the Company amounted to €430 thousand as of 30 September 2025 (31 March 2025: €430 thousand) and is divided into 43,030,303 ordinary shares (31 March 2025: 43,030,303 ordinary shares) in a dematerialised form with no nominal value. Each share of the Company represents a par value of €0.01 in the Company’s share capital. Capital reserves The capital reserves amounted to €539,594 thousand as of 30 September 2025 (31 March 2025: €539,594 thousand). Retained earnings/accumulated losses Retained earnings amounted to €-428,180 thousand as of 30 September 2025 (31 March 2025: €-446,514 thousand). Retained earnings comprise the past net income and other comprehensive income of the companies included in the consolidated interim financial state - ments as well as the amount distributed to sharehold- ers. The comprehensive income for the first half of financial year 2025/26 amounted to €18,334 thousand (PY: €11,227 thousand). The Annual General Meeting resolved the suspension of the dividend payment to the shareholders of Novem Group S.A. for the past financial year. The remaining other accumulated losses were carried forward. The negative amount primarily resulted from a recapitalisation and a related Group re-organisation in the financial year 2019/20. Difference in equity from currency translation The statements of financial position and total com - prehensive income for all foreign subsidiaries whose functional currency is not the Euro are translated into NOVEM HY 2025/26 INTERIM REPORT 24 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Euro. The currency translation differences arising are recognised in other comprehensive income and reported in the Currency translation reserve in equity; they amounted to €-15,926 thousand as of 30 Septem- ber 2025 (31 March 2025: €434 thousand). 2.6 Other provisions The provisions cover all identifiable risks and other uncertain obligations. In the following, the provisions are shown subdivided into non-current and current provisions: Non-current provisions in € thousand 31 Mar 25 30 Sep 25 Employee benefits 1,817 2,322 Other risks 456 454 Non-current provisions 2,273 2,776 The non-current provisions amounted to €2,776 thou - sand as of 30 September 2025 (31 March 2025: €2,273 thousand) and have an expected maturity of between one and five years. Of this amount, €2,322 thousand (31 March 2025: €1,817 thousand) were fully attributable to provisions in the personnel area. These personnel-related obli - gations relate to partial retirement and long-service awards, which are calculated using actuarial opinions. A further amount of €454 thousand (31 March 2025: €456 thousand) was attributable to provisions for dis- mantling obligations of leased buildings. Current provisions in € thousand 31 Mar 25 30 Sep 25 Obligations from sales 25,784 23,817 Employee benefits 1,944 2,871 Other risks 1,488 2,203 Current provisions 29,216 28,891 Current provisions as of 30 September 2025, which were recognised for uncertain obligations within one year, included in particular provisions from obligations from the personnel and sales areas as well as other risks of €28,891 thousand (31 March 2025: €29,216 thousand). The provisions attributable to the sales area included especially risks arising from warranty claims, price risks and not yet finalised customer debit notes. The outstanding customer debit notes recognised in the consolidated interim financial statements relat - ing to price or quantity differences as well as quality deficiencies were based on assumptions or estimates made on account of ongoing customer negotiations or past experiences with customers. The personnel-related obligations related largely to provisions for partial retirement benefits, severance payments and performance-based obligations. The remaining risks primarily involved several discern- ible individual risks and uncertain liabilities accounted for at their probable settlement amounts. NOVEM HY 2025/26 INTERIM REPORT 25 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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2.7 Financial liabilities in € thousand 31 Mar 25 30 Sep 25 Current Non-current Total Current Non-current Total Liabilities to banks 984 249,288 250,272 250,539 - 250,539 Financial liabilities 984 249,288 250,272 250,539 - 250,539 Total current and non-current financial liabilities amounted to €250,539 thousand as of 30 September 2025 (31 March 2025: €250,272 thousand). In June 2021, a new term loan agreement for €310,000 thousand in total (€250,000 thousand as a term loan and €60,000 thousand as a revolving credit facility) was entered into between Novem Group S.A. and an interna- tional syndicate of banks. Accordingly, the refinancing was implemented as of 23 July 2021 by the drawdown of the term loan of €250,000 thousand and matures in July 2026. As of 30 September 2025, the remaining amount of €249,555 thousand has been reclassified to current liabilities as the contractual maturity falls within the next 12 months. The carrying amount is presented net of unamortised transaction costs. After the deduction of transaction costs and pro rata interest incurred, €249,639 thousand (31 March 2025: €249,288 thousand) of the liabilities to banks of €250,539 thousand (31 March 2025: €250,272 thousand) relate to the utilised term loan. The remain- ing amount of €900 thousand (31 March 2025: €984 thousand) mainly resulted from factoring as described in section 2.3. 2.8 Other financial liabilities Other financial liabilities were composed as follows: in € thousand 31 Mar 25 30 Sep 25 Other current financial liabilities Lease liabilities 6,503 5,371 Other non-current financial liabilities Lease liabilities 41,562 36,177 Other financial liabilities 48,065 41,548 The liabilities to leases contained changes due to cash out-flow of €-6,486 thousand on the reporting date (PY: €1,022 thousand), driven by a reduction of €-3,703 thousand (PY: €-3,766 thousand) and a currency effect of €-2,783 thousand (PY: €4,788 thousand). The lease liabilities of €41,548 thousand as of 30 September 2025 (31 March 2025: €48,065 thousand) were largely from leasing land and buildings (refer to section 4.5). 2.9 Trade payables Trade payables comprise outstanding obligations from the exchange of the Group’s goods and services. Trade payables amounted to €32,399 thousand on the reporting date (31 March 2025: €49,061 thousand). The decline was mainly caused by the lower business volume, which corresponds to reduced procurement activity during the reporting period. Moreover, this development was driven by cash flow management and the maturity of liabilities. NOVEM HY 2025/26 INTERIM REPORT 26 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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3 Notes to consolidated statements of other comprehensive income 3.1 Revenue In the first half of the financial year 2025/26, Novem gen- erated total revenue of €254,476 thousand (PY: €279,470 thousand), which marks a -8.9% decrease compared to the same period of last year. As in previous years, the wood surface area accounted for the largest share of Novem’s success, followed by aluminium and premium synthetics. Revenue can be broken down by the surface areas mentioned below: in € thousand HY 2024/25 HY 2025/26 Wood 236,555 193,493 Aluminium 33,880 45,342 Premium synthetics 9,035 15,641 Revenue 279,470 254,476 Revenue Series in the first six months of the financial year 2025/26 came in at €232,831 thousand, down by -2.7% compared to the same reporting period last year (PY: €239,297 thousand). Revenue Series generated 91.5% of total revenue (PY: 85.6%) and remained the key pillar of the business. Revenue Tooling contributed €21,645 thousand to total revenue from April to September 2025 (PY: €40,173 thousand). This corresponds to a year- on-year decrease of -46.1% or €-18,528 thousand. Rev- enue within the Group can be allocated to business areas as follows: in € thousand HY 2024/25 HY 2025/26 Revenue Series 239,297 232,831 Revenue Tooling 40,173 21,645 Revenue 279,470 254,476 The following breakdown determines the type of rev - enue recognition, as revenue from Series and revenue from Tooling relating to maintenance activities are considered to be goods and services transferred over time, while revenue from the development work and subsequent sale of tools must be classified as goods and services transferred at a point in time. in € thousand HY 2024/25 HY 2025/26 Goods and services transferred over time 240,246 233,733 Goods and services transferred at a point in time 39,224 20,743 Revenue 279,470 254,476 A corresponding adjustment of revenue in the amount of €681 thousand (PY: €881 thousand) was made on account of current contract terms, whereby, on the start of production (SOP) on some platforms, the revenue recognised is reduced in line with the units delivered and the asset for the development contribu- tion is reversed accordingly. Novem expects that revenue for its delivery obligations not (or only partially) fulfilled at the end of the finan - cial year will be recognised within a year and therefore applies the practical expedient in IFRS 15.121. 3.2 Finance income/costs The financial result amounted to €10,833 thousand in the first half of the financial year 2025/26 (PY: €-8,217 thousand). Finance income in € thousand HY 2024/25 HY 2025/26 Interest income 2,530 1,805 Income from currency translation 38 17,215 Finance income 2,568 19,020 Finance income amounted to €19,020 thousand in the first half of financial year 2025/26 (PY: €2,568 thou - sand) and was largely attributable to income from foreign currency translation of €17,215 thousand. The positive foreign currency translation effect mainly arises from USD/EUR exchange rate developments and the related impact on cash pooling at Novem. In addi- tion, interest income from customer tooling totalled €1,003 thousand (PY: €1,037 thousand), while inter- est income from banks amounted to €802 thousand (PY: €1,493 thousand). NOVEM HY 2025/26 INTERIM REPORT 27 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Finance costs in € thousand HY 2024/25 HY 2025/26 Interest paid to banks 7,405 5,532 Transaction costs directly attributable to the issue of a financial liability 267 267 Interest expense from discounting of provisions 584 550 Interest expense arising from leases 886 742 Other interest expenses 1,629 1,096 Expenses from currency translation 14 - Finance costs 10,785 8,187 Finance costs amounted to €8,187 thousand (PY: €10,785 thousand) in the first half of 2025/26. Finance costs decreased compared to prior year, mainly due to lower interest expenses for banks, result- ing from the decline in the 3-month Euribor following changes in the European interest rate policy. With the exception of the interest expense from the discounting of provisions, interest expenses were calculated using the effective interest method. 3.3 Earnings per share HY 2024/25 HY 2025/26 Profit attributable to shareholders of the parent (in € thousand) 11,227 18,334 Number of weighted shares 43,030,303 43,030,303 Earnings per share basic (in €) 0.26 0.43 Earnings per share diluted (in €) 0.26 0.43 The earnings per share for the six months ended 30 September 2025 amounted to €0.43 (PY: €0.26). Earn- ings per share are calculated by dividing the profit for the period attributable to shareholders of the parent by the weighted average number of shares issued in the reporting period. NOVEM HY 2025/26 INTERIM REPORT 28 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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4 Other disclosures 4.1 Financial instruments The following table shows the carrying amounts and fair values of the financial instruments broken down by balance sheet class and category: 1 Including the Seller Guarantee in the amount of €900 thousand. 2 Including the Seller Guarantee in the amount of €900 thousand. in € thousand 31 Mar 25 30 Sep 25 Financial assets by classification Category Carrying amount Fair value Carrying amount Fair value Trade receivables FAAC 72,369 72,369 76,007 76,007 Trade receivables within the scope of factoring agreements FAFVTPL 9,923 9,923 7,679 7,679 Seller Guarantee FAFVTPL 900 900 900 900 Derivatives with positive market values FAFVTPL 1,432 1,432 1,691 1,691 Cash and cash equivalents FAAC 150,097 150,097 153,411 153,411 Financial liabilities by classification Trade payables FLAC 49,061 49,061 32,399 32,399 Liabilities to banks (non-derivative) FLAC 250,2721 252,769 250,5392 252,297 Liabilities to banks (derivative) FLFVTPL 92 92 - - Lease liabilities FLAC 48,065 48,065 41,548 41,548 Summary by category FAAC 222,466 222,466 229,418 229,418 FAFVTPL 12,255 12,255 10,270 10,270 FLAC 347,398 349,895 324,486 326,244 FLFVTPL 92 92 - - There were no transfers between the different levels of the fair value hierarchy in the first half of the financial year 2025/26. Fair value is the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. The following methods and assumptions were used to estimate fair values in the preceding half of the financial year: The invoice amount of receivables is used as a reason- able approximation for the fair value of trade receiva - bles in conjunction with factoring agreements. For trade receivables not subject to factoring agree - ments and for cash and cash equivalents, given their maturity, it is assumed that the carrying amount is a reasonable approximation of fair value due to their predominantly short-term nature. Similarly, for trade payables, non-derivative liabilities to banks and other financial liabilities, it is assumed that the carrying amount is the fair value. The fair value of the derivative financial instruments in the form of forward exchange contracts with banks is determined using the present value method based on market prices. The measurement of the fair value of trade receivables within the scope of factoring agreements and deriva - tive financial instruments is based on inputs that can be observed either directly (i.e. as prices) or indirectly (i.e. derived from prices) on active markets. As of 30 September 2025, the fair value of trade receivables within the scope of factoring agreements amounted to €7,679 thousand (31 March 2025: €9,923 thousand). The fair value of the liabilities of derivative financial instruments decreased to €0 (31 March 2025: €92 thousand). Conversely, the derivatives with positive market values increased to €1,691 thousand (31 March 2025: €1,432 thousand). NOVEM HY 2025/26 INTERIM REPORT 29 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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4.2 Share-based payments The Management Board members of Novem Group S.A. participate in a long-term incentive (Performance Share Plan) in the form of virtual shares. The Performance Share Plan is classified according to IFRS 2 as cash- settled share-based payment. The Performance Share Plan is granted in annual tranches of virtual shares with a respective perfor - mance period of four years. Deviating from this, the performance period of the tranche 2021 started on the day of the listing of Novem Group S.A. (IPO) and ended on 31 March 2025. The second tranche (tranche 2022) started at the beginning of financial year 2022/23 and will end on 31 March 2026. The third tranche (tranche 2023) started at the beginning of financial year 2023/24 and will end on 31 March 2027. The fourth tranche (tranche 2024) started at the beginning of financial year 2024/25 and will end on 31 March 2028. The fifth tranche (tranche 2025) started at the beginning of financial year 2025/26 and will end on 31 March 2029. The conditionally granted number of virtual shares at the beginning of the performance period is calculated for each tranche by dividing a contractually defined individual target amount by the start share price of the share of Novem Group S.A. (arithmetic mean of the closing prices of the stock during the last 60 trading days prior to the start of the performance period). The final number of virtual shares is determined by multiplying the total target achievement by the con - ditionally granted number of virtual shares. The total target achievement depends on the target achieve - ment of the two financial figures relative Total Share - holder Return (70% weighting) and EBIT margin (30% weighting). Thereby, the target achievement of relative Total Shareholder Return and EBIT margin can range between 0% and 150%. In order to determine the payout in cash, the final num- ber of virtual shares is multiplied by the end share price of the share of Novem Group S.A. (arithmetic mean of the closing prices of the stock during the last 60 trading days prior to the end of the performance period) plus the sum of the dividends disbursed during the perfor - mance period. The payout is capped at 200% of the contractually defined individual target amount. The first tranche granted in 2021/22 expired on 31 March 2025 without meeting the vesting conditions and was fully derecognised in line with IFRS 2. No fur- ther expense or liability remained as of the reporting date. The second tranche was awarded for financial year 2022/23 with a total number of 60,384 conditionally granted virtual shares, corresponding to a provision of €87 thousand as of 30 September 2025 (31 March 2025: €169 thousand). The third tranche was awarded for financial year 2023/24 with a total number of 83,288 conditionally granted virtual shares, corresponding to a provision of €163 thousand as of 30 September 2025 (31 March 2025: €240 thousand). The fourth tranche was awarded for financial year 2024/25 with a total number of 83,584 conditionally granted virtual shares, corresponding to a provision of €134 thousand as of 30 September 2025 (31 March 2025: €157 thousand). The fifth tranche was awarded for financial year 2025/26 with a total number of 89,743 conditionally granted virtual shares, corresponding to a provision of €30 thousand as of 30 September 2025 (31 March 2025: €0). These provisions have been included in Other liabilities. In total, the remeasurement of the long-term incen - tive resulted in an income of €153 thousand during the first half of the financial year 2025/26 compared to an expense of €282 thousand in the previous year. The remeasurement is presented within personnel expenses. NOVEM HY 2025/26 INTERIM REPORT 30 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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The fair value of the Performance Share Plan to calcu- late expenses and provisions was determined by using a Monte-Carlo-Simulation. The fair value and the inputs used in the assessment of the fair value as of 30 Sep- tember 2025 can be found below: Valuation as of 30 September 2025 Tranche 2022 Tranche 2023 Tranche 2024 Tranche 2025 Performance period 1 Apr 22 – 31 Mar 26 1 Apr 23 – 31 Mar 27 1 Apr 24 – 31 Mar 28 1 Apr 25 – 31 Mar 29 Start share price Novem Group S.A. €11.25 €9.06 €6.64 €4.66 Remaining duration of performance period 0.5 years 1.5 years 2.5 years 3.5 years Expected annual volatility 35.6% 45.6% 43.1% 47.8% Risk-free annual interest rate 2.0% 2.0% 2.1% 2.2% Expected target achievement for internal target EBIT margin 100% 100% 100% 100% Fair value per virtual share €1.45 €2.06 €2.37 €2.78 For comparative purposes, the fair value and inputs used in the assessment of the fair value as of 31 March 2025 were as follows: Valuation as of 31 March 2025 Tranche 2022 Tranche 2023 Tranche 2024 Performance period 1 Apr 22 – 31 Mar 26 1 Apr 23 – 31 Mar 27 1 Apr 24 – 31 Mar 28 Start share price Novem Group S.A. €11.25 €9.06 €6.64 Remaining duration of performance period 1.0 year 2.0 years 3.0 years Expected annual volatility 49.2% 45.4% 49.5% Risk-free annual interest rate 2.0% 2.0% 2.1% Expected target achievement for internal target EBIT margin 100% 100% 100% Fair value per virtual share €2.80 €3.10 €3.07 NOVEM HY 2025/26 INTERIM REPORT 31 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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4.3 Reporting by region Revenue by surface in € thousand Europe Americas Asia HY 2024/25 Wood 73,173 135,490 27,892 Aluminium 16,929 13,870 3,081 Premium synthetics 7,947 1,088 - HY 2025/26 Wood 60,793 111,511 21,189 Aluminium 21,751 17,173 6,418 Premium synthetics 14,297 1,250 94 Revenue by business area in € thousand Europe Americas Asia HY 2024/25 Revenue Series 82,304 132,185 24,808 Revenue Tooling 15,745 18,263 6,165 HY 2025/26 Revenue Series 85,857 129,200 17,774 Revenue Tooling 10,984 734 9,927 Revenue by type of revenue recognition in € thousand Europe Americas Asia HY 2024/25 Goods and servi- ces transferred over time 82,730 132,660 24,856 Goods and servi- ces transferred at a point in time 15,319 17,788 6,117 HY 2025/26 Goods and servi- ces transferred over time 86,090 129,833 17,810 Goods and servi- ces transferred at a point in time 10,751 101 9,891 NOVEM HY 2025/26 INTERIM REPORT 32 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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4.4 Reconciliation of information on reportable segments The following table shows further information on the Adj. EBIT performance indicator, which is used to assess the performance of the operating segments: Adjustments Europe Americas Asia in € thousand HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 Restructuring 45 1,304 - - - - Single impairments 2,578 - - - - - Others 274 286 - - - - Exceptional items 2,852 286 - - - - Discontinued operations - - - - - - Adjustments 2,897 1,590 - - - - In the first half of financial year 2025/26, adjust - ments contained €1,304 thousand restructuring costs (PY: €45 thousand), primarily attributable to personnel expenses, along with other adjustments comprising €31 thousand related to severance payments (PY: €230 thousand) and €255 thousand resulting from project costs (PY: €44 thousand). No single impairments occurred in the first half of financial year 2025/26 (PY: €2,578 thousand). Overall, the adjustments for the first six months of financial year 2025/26 were lower than previous year, primarily due to significant single impairments incurred because of an insolvency of a business partner in the previous year. NOVEM HY 2025/26 INTERIM REPORT 33 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Segment Reporting Europe Americas Asia Total segments Other/consolidation Group in € thousand HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 HY 2024/25 HY 2025/26 External revenue 98,048 96,841 150,449 129,934 30,972 27,701 279,470 254,476 - - 279,470 254,476 Revenue between segments 26,621 9,331 36,059 44,278 9,486 8,068 72,165 61,677 -72,165 -61,677 - - Total revenue 124,669 106,172 186,508 174,212 40,458 35,769 351,635 316,153 -72,165 -61,677 279,470 254,476 Adj. income/expenses from operations (except revenue and depreciation and amortisation) -125,205 -109,286 -148,863 -143,058 -35,331 -32,722 -309,399 -285,066 72,165 61,677 -237,234 -223,389 Adj. EBITDA -536 -3,114 37,646 31,154 5,126 3,047 42,236 31,087 - - 42,236 31,087 Depreciation and amortisation -7,543 -7,462 -5,618 -5,738 -2,898 -2,530 -16,059 -15,730 - - -16,059 -15,730 Adj. EBIT -8,079 -10,576 32,028 25,416 2,228 517 26,177 15,357 - - 26,177 15,357 Adjustments -2,897 -1,590 - - - - -2,897 -1,590 - - -2,897 -1,590 Operating Result (EBIT) -10,975 -12,166 32,028 25,416 2,228 517 23,280 13,767 - - 23,280 13,767 The amounts shown above in the Other/consolida- tion column include the elimination of transactions between the segments and specific items at group level that relate to the Group as a whole and cannot be allocated to the segments. The following table shows the reconciliation of Adj. EBIT to EBIT and to earnings before taxes for the first half of the financial years 2024/25 and 2025/26: in € thousand HY 2024/25 HY 2025/26 Adj. EBITDA 42,236 31,087 Depreciation and amortisation 16,059 15,730 Adj. EBIT 26,177 15,357 Adjustments 2,897 1,590 EBIT 23,280 13,767 Finance income 2,568 19,020 Finance costs 10,785 8,187 Earnings before taxes 15,064 24,600 Adj. EBIT includes transactions with a one-off and non- recurring nature that occurred in the ordinary course of business. 4.5 Leases The Group is a lessee in various leases comprising land and buildings, technical equipment and machinery as well as items of operating and office equipment. The terms of the leases for land and buildings are typically between one and 13 years. Leases of technical equip- ment and machinery generally have a term of two years. The customary terms for leases for operating and office equipment are between one and 17 years. In some cases, Novem’s leases also contain renewal options. NOVEM HY 2025/26 INTERIM REPORT 34 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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The Group estimates that the potential future lease pay- ments, if the renewal options not currently taken into account in the measurement of the lease liability were exercised, would result in expected additional future undiscounted lease payments of €40,093 thousand. Some leases for land and buildings stipulate additional rent payments based on changes in local price indices. The future cash out-flows from variable lease pay - ments not included in the measurement of the lease liability amounted to €1,311 thousand (31 March 2025: €1,404 thousand). These essentially related to leases for buildings. Further information on leases in which the Group is the lessee is presented below. There are no leases in which Novem is the lessor. Right-of-use assets in € thousand Carrying amount as of 31 Mar 25 Carrying amount as of 30 Sep 25 Land and buildings 38,278 35,125 Technical equipment and machinery 18 14 Other equipment, operating and office equipment 4,764 3,882 Right-of-use assets 43,060 39,021 Amounts recognised in profit and loss and cash flows in € thousand HY 2024/25 HY 2025/26 Interest expense for lease liabilities 885 741 Short-term lease expenses 796 646 Lease expenses for low value assets except short-term leases for low value assets 763 895 Expense for variable lease payments not included in the measurement of lease liabilities 170 155 Total expenses for leases 6,379 6,140 4.6 Related party transactions Holding company The direct holding company of the Group is Rokoko Automotive Holdings (Jersey) Limited, Jersey. During the first half of financial year 2025/26, there were no transactions or outstanding balances with Rokoko Automotive Holdings (Jersey) Limited, Jersey. Related parties According to IAS 24, the Group has to disclose specific information about transactions between the Group and other related parties. Balances and transactions between the Group and its fully consolidated subsidiar- ies, which constitute related parties within the mean- ing of IAS 24, have been eliminated in the course of consolidation and are therefore not commented on in this note. The consolidated interim financial state - ments do not include any associated companies that are accounted for using the equity method. During the first half of financial year 2025/26, no trans- actions occurred with direct and indirect shareholders. Generally, a related party relationship exists with another company regarding the purchase of compo - nents such as base frames. The related party belongs to the same group of companies pursuant to IAS 24.9b (i). No transactions occurred during the reporting period, and no outstanding balances were recorded at either of the two reporting dates. All outstanding balances and transactions with this related party are priced on an arm’s length basis and are to be settled in cash within two months. None of the balances are secured. No guarantees have been given or received. For information on the remuneration of and other transactions with key management personnel, which constitute related party transactions pursuant to IAS 24, please refer to section 4.2. 4.7 Subsequent events There were no events or developments that could have materially affected the measurement and presentation of the Group’s assets and liabilities as of 30 September 2025. NOVEM HY 2025/26 INTERIM REPORT 35 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Responsibility statement We, Markus Wittmann (Chief Executive Officer), Maria Eichinger (Manager Consolidation), Benjamin Retzer (Chief Financial Officer), Mathias Rieger (Director Internal Audit) and Florian Sandner (Chief Operating Officer), confirm, to the best of our knowledge, that the consolidated interim financial statements which have been prepared in accordance with the Interna - tional Financial Reporting Standards as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Novem Group S.A. and the undertakings included in the consolidation taken as a whole and that the Group Interim Management Report includes a fair review of the development and performance of the business and the position of the Novem Group S.A. and the under - takings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. Luxembourg, 13 November 2025 Novem Group S.A. Management Board Markus Wittmann Maria Eichinger Benjamin Retzer Mathias Rieger Florian Sandner NOVEM HY 2025/26 INTERIM REPORT 36 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Financial calendar All information is constantly updated and available. Please visit the investor section on the Company website: https://ir.novem.com Contact Investor Relations investor.relations@novem.com Date of publication 13 November 2025 05 February 2026 Q3 2025/26 Results 28 May 2026 FY 2025/26 Preliminary Results 25 June 2026 Annual Report 2025/26 ADDITIONAL INFORMATION NOVEM HY 2025/26 INTERIM REPORT 37 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Glossary 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 exclud- ing currency translation effects. 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. FAAC stands for Financial assets measured at amor - tised cost. FAFVTPL stands for Financial assets measured at fair value through profit or loss. FLAC stands for Financial liabilities measured at amor- tised cost. FLFVTPL stands for Financial liabilities measured at fair value through profit or loss. 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. Tooling net is defined as all costs and revenue related to tools, tool development and prototypes as well as pre-series business. 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 invento- ries, 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 inven - tories non-tooling and trade receivables related to non- tooling less trade payables related to non-tooling. NOVEM HY 2025/26 INTERIM REPORT 38 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Disclaimer Novem Group S.A. (the “Company”) has prepared this statement solely for your information. It should not be treated as giving investment advice. Neither the Com- pany, nor any of its directors, officers, employees, direct or indirect shareholders and advisors nor any other per- son shall have any liability whatsoever for any direct or indirect losses arising from any use of this statement. While the Company has taken all reasonable care to ensure that the facts stated in this statement are accurate and that the opinions contained in it are fair and reasonable, this statement is selective in nature. Any opinions expressed in this statement 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 state - ment. Where this statement 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 statement 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 identi- fied 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 pre - sented may not add up precisely to the totals provided. NOVEM HY 2025/26 INTERIM REPORT 39 1 GROUP OVERVIEW 2 GROUP INTERIM MANAGEMENT REPORT 3 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 4 NOTES TO CONSOLIDATED INTERIM STATEMENTS 5 ADDITIONAL INFORMATION CONTENTS
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Novem Group S.A. 19, rue Edmond Reuter | 5326 Contern | Luxembourg Email: investor.relations@novem.com www.novem.com