Presentation Tuesday, 14 November 2017

For the six months ended 30 September 2017

INTERIM FINANCIAL

RESULTS

Presented by: Keith Vroon, Chief Executive Officer Edrich Fivaz, Chief Financial Officer

EXECUTIVE OVERVIEW

FINANCIAL REVIEW

OPERATIONAL REVIEW

OUTLOOK & STRATEGY

Contents

2 CONTENTS

EXECUTIVE OVERVIEW

3

Core business

• High volume throughput due to DBE printing being expedited. • Balance of print volume under continued pressure. • Merge of Heatset and Coldset divisions brought forward. • H2 not expected to yield similar volumes or results.

Exchange rate • More favourable exchange rate scenario, client pricing points have improved.

Growth initiatives

Tissue

• TM2 operational for the full six months. • TM1 taken out of production in

June 2017 – refurbished, upgraded and placed back in production in October 2017.

• Increased volumes will be achieved in the latter part of the year.

• The converting business assets were sold in August 2017.

Labels / Packaging

• Pleasing growth across all sectors of clients including wet-glue, self-adhesive and wrap-around labels.

Novus Print Solutions

• Full production capabilities have been in place for period of review.

• Division delivered positive contribution to operating profit during first six months.

Africa

• No large / significant project to date.

Acquisitions • ITB acquisitions concluded, effective 01 October 2017. • Continue to search for further diversification initiatives and extending the ITB business model.

Business Features – for six months ended 30 September 2017

EXECUTIVE OVERVIEW 4

Operating profit excl. impairments and profit/(loss) on disposal of assets

R332m (Sep ’16: R304m) 9,2 %

Headline earnings per share

71,7c (Sep ’16: 63,3c) 13,3 %

Revenue

R2 295m (Sep ‘16: R2 177m) 5,4 %

5 EXECUTIVE OVERVIEW

Results Summary

FINANCIAL REVIEW

6

Revenue

• Turnover increased by 5,4% to R2,29bn. • Timing of DBE volume 2 impacted results positively.

Gross margin

• Gross profit margin increased by 2,2% . • Mostly driven by Print segment, however assisted by stronger

performance in Labels. • Improved pricing position mostly on the back of beneficial

forward cover rates for the period compared to H2 2017. • The gross profit margin further benefitted from production

efficiencies that were realised though the additional DBE volumes. The stabilisation of NPS and an associated increase in volumes also made a positive impact.

• Tissue and Labels both showed an improving gross profit contribution.

Operating profit

• Operating expenses increased by 20,2%, however as a % of revenue, at 14,2% it remained fairly constant to H2 2017 which was at 14,3%.

• This was predominantly due to the reversal of doubtful debt in the previous period not recurring and project costs related to the DBE project.

• Group saw a 2,1% year-on-year inflationary increase in other expenses, excluding the above.

• Acquisition related expenses and costs associated with increased business activity in ‘other’ are also included in the net 2,1% above.

Group Overview

2 075 282 2 082 757 2 176 516

2 294 583

31

3 6

46

35

2 1

78

30

4 1

33

33

2 1

07

27.5%

31.4%

26.5%

28.7%

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

Revenue Operating Profit exc. Capital Items Gross Profit %

R’000 FY15 FY16 FY17 FY18

Six months ended 30 September

FINANCIAL REVIEW 7

Revenue

• Print revenue increased by 4,3% to R2,13bn, shaped by good throughput in print volumes.

• Increase was due to the full workbook tender being printed in the first six months of the year – no further DBE work expected to accrue in second six months.

• Books and directories (excl. DBE) remained stable. • Pressure on retail sector volumes for the period. • Magazines and newspapers continue to decline. • No Africa project print work during the period.

Gross margin

• Print gross profit increased by 12,9% to R648,8m. • Exchange rate position during the six months supported gross

margin recovery. • Production efficiencies extracted through completion

of workbook project in first half of the year. • NPS project completion in H2 2017 meant back to productive

levels during H1 2018.

Operating profit

• Increase of 19,7% in operating expenses resulting from non-repeat of reversal in doubtful debt provision and full project costs related to the DBE Workbook tender.

• Additional costs incurred on acquisitions and consulting fees related to the unbundling process.

• Below inflationary increases in like-for-like expenses.

1 997 762 1 955 671 2 039 501

2 127 939

31

0 7

67

35

0 7

88

31

9 3

50

34

2 9

14

27.8%

32.0%

28.2%

30.5%

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

Revenue Operating Profit exc. Capital Items Gross Profit

Print Segment: Commentary

8

R’000 FY15 FY16 FY17 FY18

FINANCIAL REVIEW

Six months ended 30 September

Revenue

• Growth in Label volumes pleasing on the back of gravure label revenues doubling compared to the previous period.

• Tissue volumes increased by 5,1% compared to the previous period, assisted by TM2 being operational for the six month period.

• Further growth expected to be achieved through the refurbishment of TM1 (brought back online during Oct ’17) and seasonality of current gravure label requirements.

Gross margin

• Improved gross margin in Label division, assisted by additional throughput and thus better utilisation.

• Tissue gross margin still not at expected levels as a result of full capacity not being online.

Operating profit

• Increase of 23,9% in operating expenses resulting from prior year reversal of doubtful debt provision in Labels; ignoring this, the expenses in this division decreased compared to H1 2017.

• Tissue operating expenses reduced during the period resulting from the sale of tissue converting operation.

77 520

127 086 137 015

166 644

2 8

79

1 3

90

-15

11

8

-10

80

7

19.4%

22.3%

1.1%

5.8%

-40 000

-20 000

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

Revenue Operating Profit exc. Capital Items Gross Profit %

Other Segment: Commentary

9

R’000

FINANCIAL REVIEW

Six months ended 30 September

FY15 FY16 FY17 FY18

Group Income Statement Summary (Six months ended 30 Sep 2017)

2017 2016 % Change (Rounded)

Revenue R 2 295 m R 2 177 m 5,4 % ▲

Gross profit R 659 m R 576 m 14,4% ▲

Gross margin 28,7 % 26,5 % 2,2 % ▲

Fixed overheads R 327 m R 272 m 20,2 % ▲

Operating profit (Excluding impairments and profit/(loss) on disposal of assets)

R 332 m R 304m 9,2 % ▲

Operating margin (Excluding impairments and profit/(loss) on disposal of assets)

14,5 % 14,0 % 0,5 % ▲

Headline earnings per share (Cents)

71,7 c 63,3 c 13,3 % ▲

FINANCIAL REVIEW 10

Cash Position Analysis

11

Six months ended 30 Sep 2017 (R’m)

Six months ended 30 Sep 2016 (R’m)

Cash generated from operations -37 ▼ 49

Net property, plant, equipment and intangibles -76 ▲ -138

Taxation paid -94 ▼ -90

Free cash flow -207 ▼ -179

Acquisitions of subsidiaries, non-controlling interest - ▼ 11

Other loans and receivables -4 ▼ -

Net loan & finance cost payments -19 ▲ -32

Dividends paid -179 ▲ -224

Net cash flow -409 ▲ -424

Opening cash balance 227 ▼ 267

Closing cash balance -182 ▼ -157

FINANCIAL REVIEW

Free cash flow

• Timing of the workbook project cash receipts reduced cash generated from operations.

• Working capital position restored shortly after reporting period.

Net cash flow

• External loans repaid during the period; non-current liabilities relate to finance leases.

R137m

Capital Expenditure

Print segment Other segment

12 FINANCIAL REVIEW

Printing segment

• Expenditure of R14m incurred in the Print segment during the six month period.

• Maintenance spend accounting for R12m across all Heatset and Coldset plants (nine plants), with the balance related to project finalisation at NPS.

Tissue

• Expansion capex of R60m incurred to date related to TM2 project completion and refurbishment of TM1.

• Proceeds of R8,3m was realised on the sale of converting equipment (impaired during March 2017).

Labels

• Expansion capex of R10m incurred to date.

• Cylinder and engraving capacity expanded at the gravure label division.

• Expansion of finishing equipment capacity currently in progress.

OPERATING REVIEW

13

The Print division remains at the core of Novus Holdings and contributed 92% to Group revenue and 109% to Group operating profit excluding capital items.

Revenue Contribution: Print Product Category

OPERATING REVIEW 14

Category Share of Group

Revenue Sep 2017 YTD

Share of Group Revenue Sep 2016

YTD

Volume Growth/(Decline)

Magazines 15,6 % 19,7% (18,3%) ▼

Newspapers 18,3% 21,9% (15,5%) ▼

Security Products - % - % -

Retail Inserts & Catalogues 24,8 % 27,9% (9,8%) ▼

Books & Directories 33,5% 24,1% 46,2% ▲

This segment currently contributes 8,0% of revenue, but is the area of biggest potential for the Group.

Category Share of Group

Revenue Sep 2017 YTD

Share of Group Revenue Sep 2016

YTD

Volume Growth/(Decline)

Labels 4,1% 2,6% 97,0% ▲

Tissue 3,2% 3,7% 5,1% ▲

Security Products 0,5% -% -

AFRICA SALES (BEYOND SA, ALL CATEGORIES OF REVENUE):

Six months ended 30 Sep 2017: R56,3 m

(Six months ended 30 Sep 2016: R49,3m)

Revenue Contribution: Other Product Category

OPERATING REVIEW 15

CURRENT MATTERS & OUTLOOK

16

Status Update on Current Matters

Implementation of Media24 unbundling

• The unbundling was implemented on 26 September 2017. • 35 141 309 Novus Holdings shares were placed at R6,15, a 1,3 %

premium to the closing price on that day. • Good spread of shareholders. • Existing shareholders retaining or taking-up additional shares. • 1 200 to 80 000 shareholders. • Top 10 shareholders holding ± 80%. • Media24 remains largest shareholder at 19%.

Management and printing agreement - Lambert Retief / Novus Holdings / Media24

• With the implementation of the unbundling of Media24 shares, the restated management agreement between Media24 and Novus Holdings was terminated on 26 September 2017.

• Media24 exercised their right to provide Novus Holdings with six months written notice of the termination of the printing agreements in place, effective 31 March 2018.

• RFP process included Caxton as a participant. • Negotiations are currently underway. • Operational ability well proven, pricing to retain work most

important factor.

17 OUTLOOK

18

Acquisitions

ITB

Acquisition • Novus Holdings acquired ITB, effective 1 October 2017. • Initial amount of R180m paid. • Earn out capped at R300m.

Management • Earn out process to 28 February 2018. • Current management remain beyond earn out. • Operational and advisory capacity.

Operational update • Sector performance subdued. • Additional capacity has been in • Factory move almost complete. • ITB business model to be extended: • New product lines. • Novus Holdings cross-selling opportunities.

Other acquisitions

• Previously under cautionary SENS. • Re-visited acquisition opportunities. • Declined based on risk/return assessment. • Pricing – recapitalisation costs exceeding synergy benefit. • Other opportunities are being investigated.

OUTLOOK

Segment Focus Areas

19 OUTLOOK

Tissue Print Labels / Packaging

• Projects successfully completed:

• Expansion;

• Upgrade / refurbishment;

• Converting closure.

• Tissue market supply vs. demand:

• Milling capacity increase;

• Imports;

• Branded products vs. ‘non-branded’.

• Break-even point.

• Significant tenders adding good volume.

• Seasonality upside.

• Acquisition opportunities in fragmented market.

• Ongoing capital investment.

• ITB overlap of capabilities and cross-selling opportunities.

• Continued publication volume decline.

• Retail season imminent.

• Forex situation volatile, but Novus Holdings is well positioned.

• Merge of Heatset and Coldset and rationalisation.

• Media24 contract negotiations are key.

• Margin pressure expected.

Group Outlook

20

Future expansion of packaging. Business

model focused on growing through smaller acquisitions

that yield synergy and volume benefits.

Good cash flow and debt capacity

for further diversification

prospects.

Leverage existing relationships to grow market share in the labels / flexibles and tissue markets and build stable platforms for these divisions to perform optimally.

Match operational capacity to market

demand through continuous evaluation of operations, and

match equipment type to market trends.

Continued volume decline in most traditional print

market segments. (Media24 pricing pressure)

Challenging operating environment and

depressed economic outlook with currency

volatility remains.

1 2 3

4 5 6

OUTLOOK

QUESTIONS

21

APPENDIX

22

+27 21 550 2500 Investor.Relations@novus.holdings

Investor Relations Contacts