Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — FY2021 Earnings Presentation
27 slides from Navigator Company Sa's earnings presentation, Feb 14, 2022
Slide 1: FY/Q4 2021 Results Presentation
FY /Q4 2021 Results Presentation February 14th 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 Fernando Araújo Executive Directors João Lé João Paulo Oliveira Investor Relations Ana Canha 2
Slide 4: Main Highlights
FY / Q4 2021 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 33
Slide 5: Q4 2021 | Record Quarter Driven by Strong Demand
Q4 2021 | RECORD QUARTER DRIVEN << BY STRONG DEMAND • Turnover stood at € 476 million, up by 18% from Q3 and by 40% from 2020, driven by UWF volumes and higher prices; • Q4 EBITDA of € 109 million, up 14% comparing with Q3, and up 45% from Q4 2020 reflecting an EBITDA margin of 22.8%; • UWF with the
Slide 6: 2021 Financial Highlights
2021 FINANCIAL HIGHLIGHTS << After a 2020 marked by a strong impact of the pandemic on demand and sharp fall on prices, 2021 registered a strong order intake, reaching historically high levels during the second semester, and an impressive increase on pulp and paper prices FY FY Change Q4 Q3 Change T
Slide 7: Main Quarter Highlights
MAIN QUARTER << HIGHLIGHTS Operational Cash Turnover (M €) EBITDA (M €) Record turnover of € 476 million, on Flow (M €) the back of larger paper volumes 109 and price improvements; 476 96 93 374 405 70 75 71 80 79 348 341 341 66 68 70 54 Highest EBITDA level since Q4 2018, amounting to € 109 million
Slide 8: EBITDA YoY Analysis
EBITDA YoY Analysis << M€ EBITDA improvement sustained by UWF volumes, due to strong demand and price increases across the board outweigh rising costs in logistics and raw materials +69 (+24%) 36 147 -34 -41 355 -10 -30 286 R20 Price Volume Logistics Costs FX Other R21 A B C Upward trend on Pulp mar
Slide 9: EBITDA QoQ Analysis
EBITDA QoQ Analysis << M€ Top line performance in Q4 offset the rising costs +13 (+14%) 14 28 -5 4 109 96 -28 -1 R21 Q3 Price Volume Logistics Costs FX Other R21 Q4 A B C Price improvements Higher Pulp availability comparing with Soaring costs of raw materials A implemented in UWF (+10%) B Q3 (+56%)
Slide 10: EBITDA Q420 vs Q421 Analysis
EBITDA Q420 vs Q421 Analysis << M€ Significant growth in EBITDA (+45%) as the price positive impact outpaced the pressure on costs during the last quarter +34 (+45%) 11 93 -17 6 -35 109 -23 75 R20 Q4 Price Volume Logistics Costs FX Other R21 Q4 A B C Superior prices across all UWF sales volumes sign
Slide 11: Market & Group Performance
FY / Q4 2021 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 10 10
Slide 12: Pulp & Paper Prices in 2021
PULP & PAPER PRICES IN 2021 << Pulp prices in Europe escalated to the highest levels of this century (1013 €/ton) Average paper prices in 2021 were in line compared with previous year(≈1% YoY) EUROPEAN MARKET PAPER PRICE – A4 B-COPY AND BHKP (IN €) 1050 A4 B-copy BHKP 1000 Average BHKP prices 2014-1
Slide 13: Update on the Pulp Market
UPDATE ON THE PULP MARKET << • Pulp price increases to historical levels in 2021: - BHPK in Europe (year-end 2021): 1140 USD/ton (+68% vs start of the year) PRICE - BHKP in China (year-end 2021): 576 USD/ton (+15% vs start of the year) – it reached a peak of 780 USD/ton in May and a low of 550 USD/t
Slide 14: UWF Market Conditions
UWF MARKET CONDITIONS << PULP • All-time high BHKP price having a severe impact on producer´s costs, pressuring paper PRICE producer´s margins; • Global Printing and Writing demand recovered 1.4 M tons YTD November (2%), with UWF growing 3%, performing better than other grades as CWF (2%) and Mechan
Slide 15: Navigator Paper Performance
NAVIGATOR PAPER PERFORMANCE << ▪ Navigator closed the year with an order book above 80 days, an all-time high record ▪ The market-share among its European competitors increased in the second half, in relation to the first half, in Europe (up 2.0 pp) and worldwide (up 2.4 pp). ▪ Navigator diversified
Slide 16: Tissue Business
TISSUE BUSINESS << Tissue business continues to perform, with total revenue increasing 3%, above the market performance. In 2020 Tissue business already recorded a turnover increase of approximately 7% 46% Portugal (43% FY 2020) 77% Finished Products 72% Consumer & Cash & Carry Sales* by Sales* by S
Slide 17: Capex of €80 Million in 2021
CAPEX OF € 80 MILLION IN 2021 << Execution of the capex plan during 2021 was constrained by the pandemic. The capex plan will return to previous years level. Navigator is focused on its growth strategy and mindful of investment opportunities for developing its business. Capex Q4 20 vs Q4 21 and 1st
Slide 18: New Packaging Products
NEW PACKAGING PRODUCTS << Production and sales dynamics according to plan 2021 sales above € 40 million l Broad base of 125 active packaging clients The PM1 and PM3 machines at Setúbal mill ensure supply on a flexible regime with PM1 already fully dedicated to packaging (white and brown); Estimated
Slide 19: Mozambique Project Update
MOZAMBIQUE PROJECT UPDATE << Navigator and the Mozambican Government have continued to work in the implementation of an Outgrowers program and focusing efforts on establishing the necessary groundwork for Phase 1 - export of woodchips. Meanwhile Thay Mozambique Logística has obtained the financing f
Slide 20: Sustainability at the Core
SUSTAINABILITY AT THE CORE << Over 2021, Navigator further reinforced its commitment towards sustainability Climate Action - SBTi ESG Risk Rating Global Climate Ambition In 2021 ESG Risk Rating review, Navigator showed an Scopes 1 and 2 1.5º C improved performance, scoring 14.3 and once again being
Slide 21: Strong Free Cash Flow Generation
STRONG FREE CASH FLOW << GENERATION Strong generation of Free Cash Flow of € 235 million due to good operational performance, a contained level of Capex and efficient control of working capital, with an active and careful supplier's management. -61.8 (-21%) 296,6 M€ 8,9 234.7 93,4 -80,1 -9,8 2,5 -76
Slide 22: Net Debt of €595 Million
NET DEBT OF € 595 MILLION << Net debt reduction by € 85 million to € 595 million, after Navigator dividends distribution of € 100 million in the first half, and an advance on profits of € 50 million to its shareholders by the end of December. Net Debt / EBITDA ratio at a comfortable level of 1.68x.
Slide 23: Debt Profile
DEBT PROFILE << Navigator has diversified sources of funds and extended average tenure. We closed 2021 with more than 20% of total borrowing issued on a sustainable finance basis. € 100M Sustainability-linked Debt maturity profile bond 2021-2026 Total debt: € 834 million KPIs: ▪ CO2 emissions reduct
Slide 24: Takeaways
<< TAKEAWAYS • Record quarter driven by strong demand • Largest order book ever, above 80 days; • Tissue business with total revenue increasing 3%, after increasing approximately 7% in 2020; • Good start of packaging project with turnover above € 40 million; • Three shipments from Portucel Mozambiqu
Slide 25: Outlook
FY / Q4 2021 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 24 24
Slide 26: Outlook
OUTLOOK << Positive outlook in market conditions on pulp, paper and tissue sectors are expected as the economy recovers. However, there are still uncertainties on the impact of global trade constraints, new capacities start-up and sharp upturn in inflation in some regions PULP PAPER TISSUE • China r
Slide 27: FY/Q4 2021 Results Presentation
FY /Q4 2021 Results Presentation February 14th 2022