Ann: Results review two months ended 30 September 2020, page-5

Some notes from a quick review:

1. the months of August and September are the low point in demand for NUF's products. Given the seasonal nature of NUF's business, the numbers for this two month period cannot simply be multiplied by 6 to get an indication of annualised results

2. there was improvement in the mainstream business in all three regions (Europe, APAC and North America) but a deterioration in the seed business. Importantly, there was improvement in both revenues and EBITDA in all three regions. I would have liked to see more information on the seen business - in particular how much more CAPEX is needed

3. the balance sheet remains healthy. There is zero need for additional capital. However I note the increase in debt levels and while current debt levels are not of concern, I would like to see debt coming down during the current financial year

4. working capital has deteriorated and still looks high to me – I realise that the growth in revenue would likely necessitate additional working capital but I would still like to see further improvement during the current year

5. October showed continued improvement

6. COVID remains an issue. Without making any predictions as to timing, COVID will eventually go away

Conclusion: more positive than negative but not quite enough to bring me to upgrade my sentiment.