Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — Q1 2024 Earnings Presentation
26 slides from Navigator Company Sa's earnings presentation, May 21, 2024
Slide 1: Results Presentation Q1 2024
Results Presentation Q1 2024 MAY 21st 2024
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.. Accordingly, no representation, undertaking or warranty, expressed or implied, is given by T
Slide 3: Participation
PARTICIPATION António Redondo Fernando Araújo Nuno Santos Executive Directors João Lé Dorival Almeida António Quirino Soares Investor Ana Canha Relations 2
Slide 4: Q1 2024 Results Presentation Agenda
Q1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 33
Slide 5: Q1 2024 Results: Strategic Growth and Market Leadership
Q1 2024 | RESULTS Strategic Growth and Market Leadership Q1 2024 with a strong start to the year, as pulp and paper demand continues to improve, a trend already seen in H2 2023 Forest Pulp and paper prices increased, driven by dynamic demand and supply constraints (e.g.: strikes in Finland and logis
Slide 6: Q1 2024 Financial Highlights
Q1 2024 FINANCIAL HIGHLIGHTS In millions € Q1 2024 Q1 2023 YoY Q4 2023 QoQ Turnover 536.4 501.2 7% 492.7 9% ▪ Sales up by 9% QoQ and 7% YoY to €536 million – Highest ever first EBITDA 133.3 130.7 2% 125 7% quarter results Net Profit 64.1 71.7 -11% 74.2 -14% ▪ Value-added capex of €41 million EBITDA
Slide 7: Quarter Highlights
QUARTER HIGHLIGHTS Stable quarterly results Turnover (M €) EBITDA (M €) Operational Cash Flow (M €) 650 680 642 223 207 171 492 501 478 481 493 536 184 151 151 ▪ Paper sales up by 10% QoQ and 131 122 124 125 133 103 100 97 110 100 122 83 29% YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 8: EBITDA Q1 24 vs. Q1 23 Analysis
EBITDA Q1 24 vs. Q1 23 Analysis Falling prices influenced by pulp market dynamics were more than offset by an increase in volumes and a reduction in cash costs +3 (+2%) M€ 51 131 133 0 -8 9 42 -91 1Q23 A Price B Volume Logistics Variable FX Other 1Q24 C And Fixed COST Market prices below 2023 levels
Slide 9: EBITDA Q1 24 vs. Q4 23 Analysis
EBITDA Q1 24 vs. Q4 23 Analysis Higher sales volumes and market prices, driven by a stronger order book and upward trend in PIX BHKP +8 (+7%) M€ 12 4 14 133 125 -2 -1 -19 R23 Q4 A Price Volume Logistics Variable FX Other R24 Q1 B C and fixed COST Upward trend in market prices Rise in sales volume in
Slide 10: Market & Group Performance
Q1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 99
Slide 11: Pulp & Paper Prices
PULP & PAPER PRICES European market paper price – A4 B-Copy (€) and BHKP (USD) 1460 1460 ▪ BHKP pulp price index in Europe up 22% to PIX A4 COPY-B PIX BHKP USD 1380 1380 1,242 USD/ton by the end of the quarter, 1300 1300 currently at 1,381 USD/ton1: 1220 1220 ▪ the highest nominal value ever reached
Slide 12: P&W Paper Market
P&W PAPER MARKET +0.8% YoY YtD * UWF MARKET CONDITIONS 84 K ton Global apparent demand grew by +0.3% in Q1, with UWF recovering +0.8%, +0.3% CWF fell -1.2%. Mechanical fiber grew by 0.3%. 50 +1.5% ▪ In Europe apparent demand for UWF up by 10%, with recovery in 21 all formats (folio growth 20%, cutsi
Slide 13: Pulp Market
PULP MARKET Mt GLOBAL DEMAND YTD MAR 2023 YTD 2024 YTD NAVIGATOR’S PERFORMANCE + 6.3% ▪ Pulp sales totalled 110 thousand tons, +20% QoQ and YoY; while the value of sales was up 28% QoQ and down 2% YoY; + 10.1% + 16.9% ▪ One of the most efficient pulp producers in Europe 15,8 16,8 9,1 10,0 6,6 7,7 BA
Slide 14: Tissue Business
TISSUE BUSINESS SALES1 2 Q1 2024 (vs. Q1 2023) Type Geography3 Portugal International sales accounted for 71% of turnover 29%(vs. 41%) Finished Goods Spain 94%(vs. 87%) Finished products represented 94% of total sales 42%(vs. 37%) Reels 6%(vs. 13%) France 23%(vs. 13%) Focus on innovation and differe
Slide 15: Packaging - From Fossil to Forest
PACKAGING - From Fossil to Forest ▪ After a challenging 2023, with declines in several segments, the European market is starting 2024 with signs of recovery. Segments where we operate grew by 14% YoY. FLEXIBLE PACKAGING BAGS CORRUGATED & SOLID MOLDED PULP (retail, food & filling industries, ▪ gKRAFT
Slide 16: Financial Indicators
FINANCIAL INDICATORS << Capex M€ ▪ Value-added capex 32% ▪ 63% ESG & Expansion, aimed at 68% decarbonization targets and 71 efficiency gains. 44 42 41 30 ▪ Net Debt/EBITDA below 1x ESG EXPANSION, MAINTENANCE & Q1' 23 Q2' 23 Q3' 23 Q4' 23 Q1' 24 RECURRING CAPEX Net Debt & Net Debt/EBITDA* 573 550 518
Slide 17: Maturity and Liquidity
MATURITY AND LIQUIDITY 458 DEBT MATURITY PROFILE Total debt : € 634 million ▪ Well-balanced debt maturity Average Maturity : 3 years ▪ 44% of total debt is linked to sustainability 252 ▪ After the disbursement resulting from the M&A 154 154 operation, in addition to the EIB financing, long- term gre
Slide 18: Creating Value, Planting the Future
CREATING VALUE, PLANTING THE FUTURE ENVIRONMENTAL SOCIAL GOVERNANCE CLIMATE ACTION & BIODIVERSITY WORKFORCE BOARD & ETHICS ▪ 6.2Mt CO2 sequestered ▪ 30 nationalities, 24 based in Portugal ▪ Executive Compensation Disclosure ▪ 69% Certified wood ▪ 110% increase in women in top management ▪ Transparen
Slide 19: Forest Producers Club
FOREST PRODUCERS CLUB Since November 2023, the Club has grown to more than 200 members (representing around 400 million euros and 1845 direct jobs) + PROXIMITY + INVESTMENT + COMMITMENT I II III IV V Yields Scale Efficiency Empower Promote agents forestry assets Adoption of best practices Aggregated
Slide 20: Takeaways
TAKEAWAYS << ▪ 2024 got off to a positive start, with a significant increase in demand for pulp, paper and tissue. ❖ Orders began at a strong pace ❖ Positive evolution in prices across all segments ▪ Navigator’s UWF paper sales price increase implemented ▪ Focus on managing variable costs ❖ Purchase
Slide 21: New Business Opportunities
Q1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 20 20
Slide 22: Business Strategy: Reinforce Core Business and Focus on Growth
BUSINESS STRATEGY Reinforce core business and focus on growth Packaging ▪ Flexible ▪ Cupstock ▪ Kraftliner ▪ Molded Pulp Biomaterials Tissue ▪ Hygiene ▪ M&A and/or Mozambique ▪ Personal care ▪ Organic ▪ Wood exports ▪ Cosmetics E-fuels ▪ Logs and/or chips ▪ Health Renewable Energy ▪ Biogenic CO2 ▪ F
Slide 23: Tissue – Accrol Acquisition
TISSUE – ACCROL ACQUISITION Blackburn Site This quarter Navigator launched an Offer to acquire Accrol, a leading Navigator Mills independent converter in the UK's Consumer Tissue market, already approved Accrol Mills by Accrol Shareholders – effective date May 24. Strong Strategic Rational Strategic
Slide 24: Outlook
Q1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04- Outlook 23 23
Slide 25: Outlook
OUTLOOK << Forecasts for global economic growth are cautious for 2024. The current geopolitical tensions, which have created a highly complex situation in industrial and logistical operations, could lead to increased volatility in international markets reducing visibility PULP: PAPER: TISSUE: ▪ For
Slide 26: Results Presentation Q1 2024
Results Presentation Q1 2024 MAY 21st 2024
The Navigator Company — Q1 2024 Earnings Presentation on 6ix