Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — 9M 2023 Earnings Presentation
28 slides from Navigator Company Sa's earnings presentation, Oct 30, 2023
Slide 1: Q3/9M 2023 Results Presentation
Q3/9M 2023 Results Presentation October 30th 2023
Slide 2: Disclaimer
DISCLAIMER This presentation is intended to provide a general overview of The Navigator Company S.A.’s business and does not purport to deal with all aspects and details regarding The Navigator Company S.A.. This presentation has been prepared by The Navigator Company S.A. for information purposes o
Slide 3: Participation
PARTICIPATION << António Redondo Fernando Araújo António Quirino Executive Directors Dorival Almeida João Lé Nuno Santos Investor Relations Ana Canha 2
Slide 4: Q3/9M 2023 Results Presentation: Main Highlights
Q3/9M 2023 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 33
Slide 5: Q3/9M 2023 | Delivering Results Despite Adverse Market Conditions
Q3/9M 2023 | DELIVERING RESULTS << DESPITE ADVERSE MARKET CONDITIONS ▪ Extremely difficult market, with pulp prices falling and UWF and Packaging market-driven weak apparent demand during the first 9 months; ▪ Pulp and paper Q3 demand started to gradually recover, in line with destocking phasing out
Slide 6: Q3/9M Financial Highlights
Q3/9M FINANCIAL << HIGHLIGHTS Strong quarterly results with EBITDA of € 124 million and an EBITDA margin of 25.7%. Solid financial position: net debt/EBITDA ratio at 0.98x In million (€) 9M 2023 9M 2022 YoY Q3 2023 Q2 2023 QoQ Turnover 1,461 1,823 -20% 481 478 +1% EBITDA 377 552 -32% 124 122 +2% EBI
Slide 7: Main Quarter Highlights
MAIN QUARTER HIGHLIGHTS << Strong pulp volumes (more availability of pulp for sale due to lower paper and packaging integration) and improvement of paper sales in the quarter. Strong performance on tissue finished goods. Turnover (M €) EBITDA (M €) Operational Cash Flow (M €) 223 207 650 680 642 184
Slide 8: EBITDA YoY Analysis
EBITDA YoY Analysis << M€ Downward trend on Pulp and UWF market prices, Tissue above 2022 price levels. Cash costs trending to Q1 2022 levels, with wood and energy costs still above 2022. -175 (-32%) 552 29 -121 377 -38 -27 -11 -7 R22 Price Volume Logistics Costs FX Other R23 A B C Downward trend on
Slide 9: EBITDA QoQ Analysis
EBITDA QoQ Analysis << M€ Downward trend on market prices offset by increased volumes and significant reduction of cash costs in all segments. +1 (+1%) 122 27 1 124 -2 12 1 -37 R23 Q2 Price Volume Logistics Costs FX Other R23 Q3 A B C Downward trend on market Increase in sales volumes across all Dec
Slide 10: EBITDA Q3 23 vs Q3 22 Analysis
EBITDA Q3 23 vs Q3 22 Analysis << M€ Downward trend on market prices. Cost of raw materials and logistics freight maintain positive evolution improving from 2022 levels -84 (-40%) 207 15 32 124 -8 16 3 -142 R22 Q3 Price Volume Logistics Costs FX Other R23 Q3 A B C Downward trend on market prices, De
Slide 11: Q3/9M 2023 Results Presentation: Market & Group Performance
Q3/9M 2023 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 10 10
Slide 12: Pulp & Paper Prices
PULP & PAPER PRICES << BHKP pulp price index in Europe down 13% to 820 USD/ton by the end of the quarter, currently at 854 USD/ton1. A4 B-copy prices down 6% to 1,127 EUR/ton by the end of the quarter, currently at 1,107 EUR/ton1. European market paper price – A4 B-Copy and BHKP (€) 1460 PIX A4 COPY
Slide 13: Update on the Pulp Market
UPDATE ON THE PULP MARKET << ▪ BHKP in Europe | 854 USD/t1 (-38% vs start of the year). PRICE ▪ BHKP in China | 580 USD/t1 (-30% vs start of the year). ▪ 9M 2023 European BHKP average prices (EUR/t) 17% lower YoY. ▪ YTD August global demand for eucalyptus pulp grew 3% (YoY); with July/August up 11%;
Slide 14: UWF Market Conditions
UWF MARKET CONDITIONS << • Index price for A4 paper at 1,107 EUR/t1 (-16% vs beginning of the year) PRICE • Average prices during 9M 2023 up to 1,243 EUR/t (+6% vs 9M 2022) • At a global level sharp drop in apparent demand (-11%), UWF paper continues to be the most resilient (-6%), CWF paper (-18%)
Slide 15: Navigator Paper Performance
NAVIGATOR PAPER PERFORMANCE << ▪ Despite challenging market conditions, Navigator was able to maintain its high market-share: in Europe (+0.1 pp, YoY) and worldwide (-0.8 pp). ▪ Our mill brands accounted for 80% of sales and our premium products represented a large share at 58% (vs an average of 65%
Slide 16: Tissue Business
TISSUE BUSINESS << Tissue business continues to perform well, with growing sales, driven by the integration of Tissue Ejea, that is delivering better-than-expected synergies and, as well, significant market price resilience. SALES1 2 YTD 2023 (vs 9M 2022) Type Segment2 Geography3 Finished 89% Portug
Slide 17: From Fossil to Forest
FROM FOSSIL TO FOREST << Packaging segment saw a sharp downturn in demand in 2023. Nevertheless gKRAFT™ brand has won market recognition and continues to evolve with more than 250 active clients, in 33 countries, since launched. The new eucalyptus-based molded pulp products project, designed to subs
Slide 18: Capex
CAPEX << Strong capex investment, of which 61%, approximately € 86 million, classified as ESG investment, aimed at efficiency gains, aiming at decarbonization targets and efficiency gains. CAPEX M€ 142 86 56 CAPEX 9M 23 ESG Structural, Expansion, Maintenance and Recurring 17
Slide 19: Addressing Climate Change
<< ADDRESSING CLIMATE CHANGE By embracing an active role in the low-carbon economy in line with current climate science Navigator's Sustainability Navigator accelerates performance has been towards decarbonisation recognized in ESG questionnaires and ratings By 2026, the Company aims to Navigator ha
Slide 20: Solar Photovoltaic: Current Solar Energy Capacity
For CLIMATE SOLAR PHOTOVOLTAIC << The energy generation through renewable energy sources constitutes one of the company’s strategic axis. This is shown through relevant investments in solar plants in a self consumption regime. Current solar energy capacity 28,868 solar panels 12 MWp 6,613 CO2 emissi
Slide 21: Solar Photovoltaic: New Additions
For CLIMATE SOLAR PHOTOVOLTAIC << In 2023 and 2024 Navigator will triple its solar energy capacity, in a self consumption regime, and more than double the amount of CO2 emissions / year avoided. New additions: Navigator Tissue Rodão (2023) Navigator Tissue Aveiro (2023) Navigator Paper Figueira (202
Slide 22: Free Cash Flow
FREE CASH FLOW << The approximately 33 million of free cash flow reflects the impact of the tissue acquisition, the capex acceleration, as well as corporate tax payments (owing to the exceptional 2022 results). -267.2 (-89%) M€ 299.7 77.9 -29.1 -227.1 32.5 -20.1 -59.7 -3.1 Operating CAPEX * Inventor
Slide 23: Net Debt
NET DEBT << Net debt stands at € 550 million, reflecting the tissue acquisition in the 1st quarter, the distribution of € 200 million in dividends in the 2nd quarter and the tax outflows. The ratio of Net Debt/EBITDA ratio stood below 1x. M€ 1.92 2.29 2.28 2.29 2.38 2.22 1.83 1.87 2.22 1.86 776 799
Slide 24: Maturity and Liquidity
MATURITY AND LIQUIDITY << Well-balanced debt maturities, 94% of total debt issued on a fixed-rate basis and close to 40% of total debt issued on a sustainability basis. Debt maturity profile Total debt: € 656 million Average Interest Rate Average Maturity: 3 years (Sep-23) 251 1.9% 261 Interest Rate
Slide 25: Takeaways
<< TAKEAWAYS ▪ Solid results, again, despite challenging market conditions ▪ Q3 demand started to gradually recover, in line with destocking phasing out ▪ Significant reduction in managed cash costs across all businesses ▪ Delivering on our diversification plan: ▪ Tissue – Tissue Ejea integration ha
Slide 26: Q3/9M 2023 Results Presentation: Outlook
Q3/9M 2023 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 25 25
Slide 27: Outlook
<< OUTLOOK The increasingly unstable geopolitical situation and the noticeable global economic slowdown make the market outlook particularly uncertain. The responsible production planning management , the assertive sales strategies, combined with rigorous control costs programs, as well as the compa
Slide 28: Q3/9M 2023 Results Presentation
Q3/9M 2023 Results Presentation October 30th 2023
The Navigator Company — 9M 2023 Earnings Presentation on 6ix