Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — FY2024 Earnings Presentation
23 slides from Navigator Company Sa's earnings presentation, Feb 18, 2025
Slide 1: Results Presentation Q4/FY 2024
RESULTS PRESENTATION Q4/FY 2024 FEBRUARY 18th 2025
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: Participants
PARTICIPANTS António Redondo Fernando Araújo Nuno Santos Executive Directors João Lé Dorival Almeida António Quirino Soares Investor Ana Canha Relations 2
Slide 4: 01. Main Highlights
01. Main Highlights 33
Slide 5: 2024 | Second-Best Results Ever
2024 | SECOND-BEST RESULTS EVER Strategic Growth and Market Leadership TURNOVER & EBITDA 2024: Pulp prices saw sharp increases in H1 followed by severe corrections in H2, The company’s second-best result ever, even when not contrasting with stable paper prices. Orders for UWF paper and Packaging imp
Slide 6: 2024 | Financial Highlights
2024 | FINANCIAL HIGHLIGHTS Navigator presents exceptional stability in delivering results, even in a highly volatile market Turnover 2.088M€ EBITDA 547M€ ▪ Navigator leverages its unrivalled size, cost 1 838 € €451 efficiency, and strategic focus on premium and mill- 2 465 736 branded sales to achi
Slide 7: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Applied towards profitability, growth and sustainability ▪ Navigator's recent international expansion (Spain and UK) and business Cash Flow 455M€ diversification, through Tissue and more recently Packaging, that already represent 26% of the total turnover, have boosted re
Slide 8: Responsible Investment
RESPONSIBLE INVESTMENT Across all businesses, that positively impact our profitability, secure long- term growth, and build a sustainable future. Climate Transition Cut direct CO2 emissions by 86%1 Decarbonisation Roadmap Energy efficiency Water Efficiency Specific use of water in operations Target:
Slide 9: 2024 | Financial Highlights
2024 | FINANCIAL HIGHLIGHTS Strong Financial Position After Strong CAPEX, M&A and Dividends FY 2024 FY 2023 YoY ▪ Net Profit of € 287 million, up 4% YoY, also Millions € 2nd Best Result of all time Turnover 2 088 1 953 +7% EBITDA 547 502 +9% ▪ Value-added capex of € 241 million ▪ 50% ESG investments
Slide 10: EBITDA YoY Analysis
EBITDA YoY Analysis Strong results driven by higher sales volumes and decreasing cash costs +45 (+9%) M€ 51 3 547 502 28 9 -8 -37 R23 Price Volume Logistics Costs FX Other R24 A B C A Although still below last year’s B Increase in sales volumes driven by an C Sharp cost reduction in raw materials, l
Slide 11: Debt Maturity and Liquidity
DEBT MATURITY AND LIQUIDITY New Long-Term Debt Ensures Adequate Profile and Ample Liquidity Debt Maturity Profile Total debt: € 904 million Average Maturity: 3.5 years ▪ New long-term debt facilities: 505 M Sustainable ▪ Financial conditions linked to three KPI´s flagged in our Sustainability Agenda
Slide 12: 02. Market & Group Performance
02. Market & Group Performance 11 11
Slide 13: Pulp & Paper Prices
PULP & PAPER PRICES The fastest and sharpest downward cycle in Pulp Prices in recent years European market paper price – A4 B-Copy (EUR) and BHKP (USD) 1460 1540 PIX A4 COPY-B PIX BHKP USD 1380 1460 ▪ BHKP pulp price index in Europe up 19% 1300 1380 to 1,000 USD/ton by the end of the year, 1300 1220
Slide 14: P&W Paper Market
P&W PAPER MARKET UWF Remains Most Resilient Segment Due to Versatile Uses Global Demand for P&W Paper 𝟏 Global apparent demand +0.5%: FY 2024 ▪ UWF +0.3%, CWF +0.5% and mechanical +1.2% ▪ Operating Rate stood at 86% (vs. 82% European industry) ▪ In tough market conditions, mill brands and…
Slide 15: Pulp Market
PULP MARKET Euca Nearing Half of Pulp Market and Almost 80% of Hardwood Eucalyptus Kraft Market Pulp was an innovation introduced by Navigator in the 50’s, that became a world standard in Hardwood Pulps Global Demand for Pulp 𝟏 One of the most efficient hardwood pulp producers in Europe 68.3 % EUCA
Slide 16: Tissue Business
TISSUE BUSINESS Growing with Strong Performance TISSUE MARKET TISSUE SALES 2024 1 2 (vs. 2023) Tissue demand grew by 5.4% in Western Europe in 2024, driven by recovery in the Away-from-Home Type Segment Geography3 segment and increased household spending Reels Finished Goods At Home Away from Home 3
Slide 17: Packaging | From Fossil to Forest
PACKAGING l From Fossil to Forest Cutting-edge and Innovative Sustainable Solutions Sales Volume Doubled YoY ▪ 70% of sales in Europe : Mainly in Iberia, France, Italy and Germany ▪ 30% in overseas markets: North Africa, Turkey Latin America ▪ gKRAFT brand - won market recognition and continues to e
Slide 18: Packaging | Moulded Fibre
PACKAGING l MOULDED FIBRE 1st Moulded Fibre Products with BfR XXXVI Recommendation gKRAFT Bioshield designed to replace single use plastic and aluminum packaging in food sector: ▪ World’s largest integrated plant using eucalyptus fibre ▪ Market with high potential and growth ▪ 1st line of production
Slide 19: Takeaways
TAKEAWAYS 2024 was full of initiatives and achievements that reflect our commitment to growth and diversification. Navigator’s workforce today is stronger and more diverse with nearly 4.000 employees, 40 different ▪ Strong FY results nationalities, 10 production plants in 3 countries – Portugal, Spa
Slide 20: 03. Outlook
Q2/H1 2024 RESULTS PRESENTATION 03. Outlook 19 19
Slide 21: Outlook
OUTLOOK After two years – 2023 and 2024 - in which Navigator surpassed initial expectations, 2025 again presents challenging-to-anticipate scenarios, driven by ongoing conflicts, economic volatility and shifting global trade policies PULP PAPER & PACKAGING TISSUE ▪ Prices in China and Europe are ant
Slide 22: Proposed Dividend
PROPOSED DIVIDEND PROPOSED ALLOCATION OF PROFITS Considering Navigator's performance in 2024, the Board of Directors will propose to the General Meeting of Shareholders distribution of dividends of 175 million euros, corresponding to 0,24606 euros per share. The Board of Directors will also propose
Slide 23: Results Presentation Q4/FY 2024
RESULTS PRESENTATION Q4/FY 2024 FEBRUARY 18th 2025