Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — Q1 2022 Earnings Presentation
24 slides from Navigator Company Sa's earnings presentation, May 24, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentation May 24th 2022
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 Adriano Silveira Fernando Araújo Executive Directors João Lé João Paulo Oliveira Nuno Santos Investor Relations Ana Canha 2
Slide 4: Main Highlights
Q1 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 33
Slide 5: Q1 2022 | Record Quarterly Results
Q1 2022 | RECORD QUARTELY RESULTS << • Tight market dynamics mainly due to: • Negative supply side shocks withdrawing more than 1 Mt of short fiber pulp from the market in Q1; • Paper capacity reduction in Europe and the USA and limited supply in Middle East and African markets; • Continued costs hi
Slide 6: 3M 2022 Financial Highlights
3M 2022 FINANCIAL << HIGHLIGHTS Focus on operational efficiency and implementation of price increases across all businesses offset costs. EBITDA increased by 72% to € 122 million (€ 71 million in Q1 2021). Q1 Q1 Change Q4 Change In millions € 2022 2021 YoY 2021 QoQ Turnover 492 341 +44% 476 +3% EBIT
Slide 7: Main Quarter Highlights
MAIN QUARTER << HIGHLIGHTS Turnover, EBITDA and operating cash flow registered a positive performance. Pulp and paper sales volume reduction due to the need to replenish stocks and to logistics challenges. Operational Cash Turnover (M €) EBITDA (M €) Flow (M €) 109 122 476 492 96 93 405 75 80 79 83
Slide 8: EBITDA YoY Analysis
EBITDA YoY Analysis << EBITDA improvement sustained by favorable S/D conditions that allowed successful price increases across all businesses outweighing rising costs in raw materials, energy and logistics. +51 M€ (+72%) 114 -3 -12 8 122 -53 -4 71 R21 Price Volume Logistics Costs FX Other R22 A B C
Slide 9: EBITDA QoQ Analysis
EBITDA QoQ Analysis << M€ Successful price increases implemented in the quarter offset persistent rise in costs +13 (+12%) 48 1 -14 2 122 109 -17 -8 R21 Q4 Price Volume Logistics Costs FX Other R22 Q1 A B C Price improvements in Q1 Lower Pulp and UWF availability Persistent rise in costs of raw A im
Slide 10: Market & Group Performance
Q1 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 99
Slide 11: Pulp & Paper Prices in 2022
PULP & PAPER PRICES IN 2022 << Pulp prices breaking historical highs during the quarter, with BHKP benchmark index in EUR up 58% vs average prices in Q1 2021 and +3% QoQ Average paper prices also increased (+28%YoY; +15 QoQ) EUROPEAN MARKET PAPER PRICE – A4 B-COPY AND BHKP (IN €) 1250 A4 B-copy BHKP
Slide 12: Update on the Pulp Market
UPDATE ON THE PULP MARKET << • Pulp price 2022: • BHKP in Europe (April 5, 22): 1.069 EUR/ton (+6% vs start of the year) PRICE • BHKP in China (April 5, 22): 737 USD/ton (+28% vs start of the year) • Average prices of BHKP in Europe with a significant growth of 58% vs average prices in Q1 2021 • Per
Slide 13: UWF Market Conditions
UWF MARKET CONDITIONS << • Benchmark index for A4 paper in Europe up 28% YoY supported by higher pulp prices, increased energy costs, raw materials and logistics, and unparalleled supply/demand unbalance PRICE • 13% increase in the quarter to € 1.104/ ton (vs € 976 / ton in the beginning of the year
Slide 14: Navigator Paper Performance
NAVIGATOR PAPER << PERFORMANCE ▪ Navigator kept a strong order book above 80 days; ▪ Record high performance of products mix vs Q1 2021, with: ▪ the share of Premium Paper increasing 16 p.p., and ▪ the Mill Brand share increasing 9 p.p. ▪ The market-share among its European competitors also increase
Slide 15: Tissue Business
TISSUE BUSINESS << Tissue business continues to perform with a significant increase of Finished Products sales. 46% Portugal 81% Finished Products 73% Consumer & Cash & Carry (48% 3M 2021) Sales1 by Sales1 by Sales1 by type (74% 3M 2021) (73% 3M 2021) segment geography (Q1 2022) (Q1 2022) 37% Spain
Slide 16: From Fossil to Forest
FROM FOSSIL TO FOREST << Production and sales dynamics according to plan First quarter sales of € 21 million Delivering Innovation | 2 patents submitted in 2022 BAGS CORRUGATED BOARD FLEXIBLE PACKAGING (retail, take-away, filling industries, etc.) (agriculture, industry, retail, e-commerce, etc.) (p
Slide 17: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW << GENERATION −Strong cash flow generation of € 77 million. Low level of working capital and a responsible supplier management policy favored the generation of liquidity. -5.8 (-7%) 82,8 17,0 77.0 M€ -14,7 53,0 -48,2 34.5 -19,9 Operating -47.3 Cash Flow State & Free Cash Q1 202
Slide 18: Net Debt
NET DEBT << Net Debt significant reduction of € 77 million vs year-end 2021. Net Debt/EBITDA ratio of 1.28x reflects the Group’s solid financial position. 796 800 M€ 776 700 680 715 644 624 658 683 677 2,25 2,29 2,28 2,35 2,30 597 2,20 595 1,83 1,87 1,93 1,86 518 1,68 1,50 1,50 1,28 Q4 Q1 Q2 Q3 Q4 Q
Slide 19: Maturity and Liquidity
MATURITY AND LIQUIDITY << Navigator has reimbursed loans in the amount of € 100 million in first quarter. Already in May Navigator has extended the € 150 million 2023-Bond contracting a new ESG-Linked debt. With this operation more than 35% of total borrowing will be issued on a sustainable finance
Slide 20: A Bioindustry on the Right Side of the Future
A BIOINDUSTRY ON THE RIGHT << SIDE OF THE FUTURE A- L E A D E R S H I P | C L I M AT E RECOGNITIONS 3 PA P E R & FORESTRY R AT I N G 81 NVG position in industry cluster Global Climate Ambition Scopes 1 and 2 1.5º C Scope 3 well below 2º C COMMITMENTS # FROM FOSSIL TO FOREST 19
Slide 21: Takeaways
<< TAKEAWAYS • Strong quarter driven by tight market dynamics and successful price increases; • Driven by strong demand, and tight supply and the market preference for our products and brands, Navigator kept an order book above 80 days in the paper business; • Sales prices increase in all business a
Slide 22: Outlook
Q1 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 21 21
Slide 23: Outlook
OUTLOOK << Q2 started with strong prices across all businesses. Good commercial momentum sustained by record high order books in Europe together with low levels of stocks across the supply chain. Strong start but with significant uncertainties for 2022. ▪ Europe's macroeconomic and geopolitical envi
Slide 24: Q1 2022 Results Presentation
Q1 2022 Results Presentation May 24th 2022
The Navigator Company — Q1 2022 Earnings Presentation on 6ix