Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — Q3 2024 Earnings Presentation
21 slides from Navigator Company Sa's earnings presentation, Oct 30, 2024
Slide 1: Results Presentation Q3/9M 2024
RESULTS PRESENTATION Q3/9M 2024 OCTOBER 30th 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: Participants
PARTICIPANTS António Redondo Fernando Araújo Nuno Santos Executive Directors João Lé Dorival Almeida António Quirino Soares Investor Ana Canha Relations 2
Slide 4: Q3/9M 2024 Results Presentation Agenda
Q3/9M 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-Outlook 33
Slide 5: Q3/9M 2024 | Strong Results
Q3/9M 2024 | STRONG RESULTS Strategic Growth and Market Leadership Q3 2024: The European industry faced a seasonal slowdown, but the quarter ended with solid results, supported by the resilience of paper, packaging and tissue prices and Forest growth in the Tissue and Packaging segments 9M Navigator
Slide 6: Q3/9M 2024 Financial Highlights
Q3/9M 2024 FINANCIAL HIGHLIGHTS Strong Financial Position After Strong CAPEX and M&A Millions € 9M 2024 9M 2023 YoY Q3 2024 Q2 2024 QoQ ▪ Net Profit of € 241 million, up 20% YoY Turnover 1 569 1 461 +7% 503 529 -5% ▪ Value-added capex of € 151 million ▪ 53% ESG investments EBITDA 431 377 +15% 133 16
Slide 7: Quarter Highlights
QUARTER HIGHLIGHTS Seasonal Slowdown in Q3 Was Stronger This Year, Yet Solid Results ▪ EBITDA: € 133 million (+7% vs Q3 23), EBITDA margin of 26.3% (+ 0.7 vs Q3 23) Turnover (M €) EBITDA (M€) & EBITDA Operational Cash margin (%) Flow (M €) 536 529 503 165 ▪ Resilient paper, packaging and tissue 478
Slide 8: EBITDA 9M 24 vs. 9M 23 Analysis
EBITDA 9M 24 vs. 9M 23 Analysis Lower market prices in UWF and Tissue more than offset by higher sales volumes and decreased cash costs +55 (+15%) 21 431 45 1 377 9 44 -65 R23 Price Volume Logistics Costs FX Other R24 A B C A Whilst lower YoY, market prices B Increase in sales volumes driven by a C
Slide 9: Market & Group Performance
Q3/9M 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-Outlook 88
Slide 10: Pulp & Paper Prices
PULP & PAPER PRICES European benchmark index for office paper prices remains resilient European market paper price – A4 B-Copy (EUR) and BHKP (USD) 1460 1540 PIX A4 COPY-B PIX BHKP USD 1460 1380 ▪ BHKP pulp price index in Europe up 24% to 1300 1380 1300 1,261 USD/ton by the end of the quarter, 1220
Slide 11: P&W Paper Market
P&W PAPER MARKET Growth in demand for all Printing and Writing papers 1136 Kt UWF MARKET CONDITIONS YoY YtD 1 Global apparent demand grew by 2.6% YoY, with UWF +2.4%, CWF +2.4% and mechanical papers +3.8%. 689 Kt ▪ In Europe apparent demand for UWF up by 11%, with 215 Kt 202 Kt recovery in all forma
Slide 12: Pulp Market
PULP MARKET Eucalyptus Pulp Nearing Half of Pulp Market and Over 75% of Hardwood Pulp GLOBAL DEMAND 1 EUCALYPTUS PULP demand has gained share within BCP and HW NAVIGATOR’S PERFORMANCE % EUCA 2023 2023 Ytd ▪ Pulp sales totalled 277 thousand tons 44.2 Mt 43.8 Mt ▪ One of the most efficient pulp produc
Slide 13: Tissue Business
TISSUE BUSINESS Growing with Strong Performance MARKET SALES 1 2 9M 2024 (vs. 9M 2023) Strong Tissue paper demand, up 5.8%4 in Western Europe: TYPE SEGMENT2 GEOGRAPHY3 Finished Goods Reels At Home Away from Home Spain ❖ Recovery of household spending power yields positive effects 97% (vs.89%) 3% (vs
Slide 14: Packaging - From Fossil to Forest
PACKAGING - From Fossil to Forest 9M Sales Volume Up 108% YoY ▪ After a promising H1, Q3 confirmed the trend with robust and consistent demand ▪ gKRAFT brand - has won market recognition and continues to evolve: ▪ +300 active clients ▪ 9M Sales Volume Up 108% YoY ▪ FLEX sales share increase within o
Slide 15: Packaging – Moulded Pulp
PACKAGING – MOULDED PULP Focus on Sustainability, Innovation and Business Transformation AVEIRO SITE gKRAFT Bioshield designed to replace single use plastic and aluminum packaging: ❖ World’s largest integrated plant using eucalyptus fibre ❖ Market with high potential and growth ❖ 1st pieces hit the
Slide 16: Debt Maturity and Liquidity
DEBT MATURITY AND LIQUIDITY New Long-Term Debt Ensures Adequate Profile and Ample Liquidity Debt Maturity Profile 533 M Total debt : € 709 million Average Maturity : 3.7 years ▪ New long-term debt: Sustainable ▪ 5, 6 and 7 years; ▪ €300 million; ▪ Financial conditions linked to three KPI´s 253 M pre
Slide 17: A Bioindustry on the Right Side of the Future
A BIOINDUSTRY ON THE RIGHT SIDE OF THE FUTURE A business responsible for Climate and Nature and for Society FOREST PRODUCERS CLUB Since November 2023, the Club has grown, surpassing 320 members (representing more than € 435 million and accounting for more than 2,230 direct jobs) + PROXIMITY + INVEST
Slide 18: Takeaways
TAKEAWAYS << ▪ Strong 9M results SUSTAINALYTICS’ ESG RISK RATING 2024 ❖ Operational flexibility, business-mix management Navigator at the Top of the Paper & Forestry and Paper & Pulp ❖ Significant cash cost reduction: Pulp, UWF, Packaging and Tissue cash clusters costs drop by 20 to 30% vs peak leve
Slide 19: Outlook
QQ23//H91M 22002244 RREESSUULLTTSS PPRREESSEENNTTAATTIIOONN 01-Main Highlights 02-Market & Group Performance 03-Outlook 18 18
Slide 20: Outlook
OUTLOOK << Q4 got off to a turbulent start, with rising geopolitical tensions and disappointing macroeconomic data. The polarisation and uncertainty surrounding the US elections have serious implications for global stability and significantly hinder short- term visibility. Nonetheless, macroeconomic
Slide 21: Results Presentation Q3/9M 2024
RESULTS PRESENTATION Q3/9M 2024 OCTOBER 30th 2024
The Navigator Company — Q3 2024 Earnings Presentation on 6ix