Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — H1 2020 Earnings Presentation
25 slides from Navigator Company Sa's earnings presentation, Jul 30, 2020
Slide 1: Q2/H1 2020 Results Presentation
Q2 /H1 2020 Results Presentation July 30th 2020
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 Executive Directors Fernando Araújo João Lé João Paulo Oliveira Nuno Santos Investor Relations Joana Appleton 2
Slide 4: H1/Q2 2020 Results Presentation
H1/Q2 2020 RESULTS << PRESENTATION 01 02 03 Market & Covid-19 Main Group Impact & Highlights Performance Outlook 3
Slide 5: Q2 2020 Impacted by lockdowns
<< Q2 2020 Impacted by lockdowns • Severe fall in consumption of UWF across the world due to the Covid-19 pandemic and the general lockdowns of economies • Consumption of graphic paper, namely advertising and commercial printing was particularly hurt; global reduction of UWF fell around 25% in Europ
Slide 6: H1/Q2 2020 Financial Highlights
H1/Q2 2020 Financial Highlights << Turnover declined 19% YoY on the back of In millions € H1 H1 Change Q2 Q1 Change decreased paper sales and lower paper prices 2020 2019 HoH 2020 2020 YoY Increase in pulp and tissue volume and significant improvement in production costs Turnover 696 854 -19% 290 40
Slide 7: Main quarter highlights
Main quarter highlights << Operational Cash Turnover (M €) EBITDA (M €) Flow (M €) 422 432 420 414 406 105 102 Drop in UWF consumption due to 93 88 290 72 80 80 lockdowns led to a reduction in paper 52 59 71 50 output and sales (-37% QoQ and YoY) Pulp sales in Q2 increased to 110 Ktons, Q1 Q2 Q3 Q4
Slide 8: EBITDA QoQ Analysis
EBITDA QoQ Analysis << EBITDA falls comparing with last year Q2 as prices fall from historically high levels, despite significant reduction in costs -50 (-49%) 102 -48 UWF External fibers Chemicals Pulp Wood Fixed costs Tissue -33 7 52 23 UWF Pulp Tissue R19 Q2 Price Volume Costs Other R20 Q2 A B C
Slide 9: 6M 2020 EBITDA
6M 2020 EBITDA << Diversification into Pulp and Tissue businesses, as well as significant cost savings, eased the impact of lockdown measures on UWF consumption and decline in pulp and paper prices -67 (-32%) 207 -85 42 140 -20 -4 UWF UWF External fibers Pulp Pulp Wood Tissue Tissue Chemicals EUR/US
Slide 10: Market & Covid-19 Impact
Q1 2020 RESULTS PRESENTATION << 01 02 03 Market & Covid-19 Main Group Impact & Highlights Performance Outlook 9
Slide 11: Pulp & Paper Prices in H1 2020
PULP &PAPER PRICES IN H1 2020 << With market discounts increasing, net pulp prices are currently at the lowest level since end 2009 Paper prices have been impacted by current market conditions and declined 6% YoY 1000 EUROPEAN MARKET PAPER PRICE – A4 B-COPY AND BHKP (IN €) A4 B-copy BHKP Average pul
Slide 12: Update on the Pulp Market
UPDATE ON THE PULP MARKET << • The pulp market was quite resilient during the first half of 2020 with demand and supply impacted by several events. On the demand side, worldwide pulp demand grew +8% YTD May 2020 vs. 2019, with significant increase in Latin America (22%), Africa (18%), Eastern Europe
Slide 13: UWF Market Conditions
UWF MARKET CONDITIONS << PULP Gross hardwood pulp prices have stabilized, remaining flat at 680 USD/ton since PRICE December 2019 • Demand strongly weakening during Q2, namely in April and May, with the impact of the pandemic and consequent lockdown measures clearly affecting paper consumption; UWF
Slide 14: Navigator Paper & Pulp Performance
NAVIGATOR PAPER & PULP PERFORMANCE << PAPER PERFORMANCE • UWF sales volume decreased 17% YoY and 37% QoQ following production curtailment in April, May and June • Average index price for H1 2020 was down 6.6% vs H1 2019 and down 2.2% vs Q1 2020 and paper turnover stood at € 468 million in the first
Slide 15: Record Performance in Tissue
Record Performance in Tissue << 40% Away-from-Home +C&C 38% Portugal Revenue by Revenue by segment 45% Consumer (At-Home) geography 30% Spain (H1 2020) (H1 2020) 15% Parent Reels 32% Extra-Iberia • Global volume of tissue sold increased to 52 kton (+10% YoY), sustained by strong sales in reels which
Slide 16: Capex of €48.7 Million in H1
CAPEX OF € 48.7 Million in H1 << (VS € 68.2 Million) Capex plan for 2020 was revised significantly downwards to € 70 million (vs € 158 million): - - 80% of capex registered in H1 comes from projects started in previous years - - the € 48.7 million includes payments made in 2020 referring to investme
Slide 17: Very Strong Free Cash Flow Generation in Q2
VERY STRONG FREE CASH FLOW GENERATION IN Q2 << Vigorous generation of Free Cash Flow of € 99 million, comparing favorably with FCF of € 15 million in Q1 2020; efficient management of working capital, with both strong cash conversion of clients receivables and careful management of suppliers M€ 9,1 2
Slide 18: H1 - Strong Free Cash Flow Generation
H1 - STRONG FREE CASH FLOW GENERATION << Very strong generation of Free Cash Flow of € 114 million, comparing favorably with FCF of € 101 million in H1 2019; efficient management of working capital, with both strong cash conversion of clients receivables and careful management of suppliers, with rec
Slide 19: Net Debt at €700 Million
NET DEBT at € 700 MILLION << Net debt declined € 15M* vs year-end 2019, after the Group proceeded to the distribution of approximately € 100 million in reserves to shareholders Net debt evolved very favorably from Q1 to Q2, sustained by lower capex and management of working capital M€ 796 776 800 73
Slide 20: Conservative Debt Profile
Conservative Debt Profile << Navigator increased its short term liquidity to 317 M€ at the end of June and has no significant repayments in 2020; current average cost of debt remains very competitive Debt maturity profile Total debt: € 1,027 million Average maturity: 2.9 years Current Average Cost o
Slide 21: Outlook
Q1 2020 RESULTS PRESENTATION << 01 02 03 Market & Covid-19 Main Group Impact & Highlights Performance Outlook 20
Slide 22: Q2/H1 2020 Summary
<< Q2/H1 2020 SUMMARY • Decline in consumption of UWF across the world due to the Covid-19 pandemic and the general lockdowns of economies • Navigator managed paper production output during most of the quarter, avoiding inventories build-up , further price erosion and preserving working capital • Wi
Slide 23: Swift response measures taken to Covid-19
Responsive Swift response measures << to Covid-19 and taken to secure prompt measures to preserve business well business well being being were put in place Efficiency and cost reduction programmes Capex Annual target for reduction Capital expenditure for in fixed costs in 2020 of € Liquidity 2020 re
Slide 24: Outlook for 2020
<< Progressive recovery of UWF business in Q3, albeit at a Outlook for 2020 slow pace and depending on the rhythm of economic progression; high level of uncertainty persists Navigator will continue with its strong commercial planning, cost efficiency programs and effective management of liquidity PU
Slide 25: Q2/H1 2020 Results Presentation
Q2/H1 2020 Results Presentation July 30th 2020
The Navigator Company — H1 2020 Earnings Presentation on 6ix