Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — Q1 2021 Earnings Presentation
26 slides from Navigator Company Sa's earnings presentation, Jun 1, 2021
Slide 1: Q1 2021 Results Presentation
Q1 2021 Results Presentation June 1st 2021
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 Nuno Santos Investor Relations Joana Appleton 2
Slide 4: Main Highlights
Q1 2021 RESULTS PRESENTATION << 01 02 03 Market & Main Group Outlook Highlights Performance 3 3
Slide 5: Q1 2021 in line with Q4 2020: stable performance
Q1 2021 IN LINE WITH Q4 2020 << STABLE PERFORMANCE • With the new lockdowns implemented in Q1, paper demand evolved in line with Q4 2020; market pulp conditions improved significantly with prices in China increasing 46% (+35% in Europe in Euros); • Navigator concentrated larger maintenance stoppages
Slide 6: 3M 2021 Financial Highlights
3M 2021 FINANCIAL HIGHLIGHTS << Q1 Q4 Change Q1 Change In millions € 2021 2020 QoQ 2020 YoY Turnover of € 341 million stood in line with Q4 2020, as a recovery in selling prices offset Turnover 341 341 -0.2% 406 -16% the reduction in pulp and paper sales volumes EBITDA 71 75 -6% 88 -20% EBITDA total
Slide 7: Main Quarter Highlights
MAIN QUARTER HIGHLIGHTS << Operational Cash Turnover (M €) EBITDA (M €) Paper sales were aligned with Q3 2020 Flow (M €) and slightly below Q42020. Pulp sales 414 406 impacted by very low inventories at the 348 341 341 88 75 290 72 70 71 71 66 68 start of the year and planned 52 59 50 54 maintenance
Slide 8: EBITDA YoY Analysis
EBITDA YoY Analysis << COVID lockdowns and planned production stoppages with negative impact on the top line Contraction softened by a sound performance on the variable and fixed costs front -18 (-20%) 88 -29 18 3 71 -9 Wood UWF UWF Energy Pulp Pulp Chemicals Tissue Tissue Packaging Fixed costs R20
Slide 9: EBITDA QoQ Analysis
EBITDA QoQ Analysis << Recurring EBITDA in Q1 reflects a similar demand context in UWF, with a significant recovery of pulp prices and a favorable evolution of fixed costs -4 (-6%) 9 9 -4 75 71 -19 UWF UWF Energy Pulp Pulp Chemicals Tissue Tissue Fixed costs R20 Q4 Price Volume Costs Other R21 Q1 A
Slide 10: Market & Group Performance
Q1 2021 RESULTS PRESENTATION << 01 02 03 Market & Main Group Outlook Highlights Performance 9 9
Slide 11: Pulp & Paper Prices in 2021
PULP & PAPER PRICES IN 2021 << Gross pulp prices saw a significant recovery when comparing with Q4 Paper price suffered a decline of 6.4% YoY EUROPEAN MARKET PAPER PRICE – A4 B-COPY AND BHKP (IN €) 1000 A4 B-copy BHKP Average BHKP prices 950 2014-18 2020 Q1 2021 900 Europe 817 680 782 USD 850 Europe
Slide 12: Update on the Pulp Market
UPDATE ON THE PULP MARKET << • After proving to be a resilient market in 2020 (with short fibre growing by 6%), global pulp market in 2021 revealed a recovery in benchmark prices in 2021, with successive increases occurring during the quarter; • BHKP price in USD in China increased approximately 46%
Slide 13: UWF Market Conditions 1/2
UWF MARKET CONDITIONS 1/2 << PULP Global pulp market is showing recovery in benchmark prices, with continuous increases PRICE occurring during the first three months of the year, sustaining paper price increase; • Global demand for P&W fell around 8% YTD March, with UWF performing better than other
Slide 14: UWF Market Conditions 2/2
UWF MARKET CONDITIONS 2/2 << Significant improvement in UWF conditions in March and April • YTD Apr demand declined 3.9%, showing a clear recovery since the begining of the year; • Reduced apparent consumption in Europe mainly due to lower imports • NVG order book grew since the begining of the year
Slide 15: Navigator Paper & Pulp Performance
NAVIGATOR PAPER & PULP PERFORMANCE << PAPER PERFORMANCE in Q1 • UWF sales volume decreased 2% in Q1, comparing with previous quarter, to 335 ktons; • Average selling price impacted by product and market mixes and penalised in a higher level by exchange rates evolution in international markets; • Pap
Slide 16: Solid Performance in Tissue Business
SOLID PERFORMANCE IN TISSUE BUSINESS << In spite of lockdowns and travel restrictions imposed at the beginning of the year, particularly impacting the Away-from-Home segment , NVG´s tissue performed remained solid 44% Portugal 83% Finish Product Revenue by Revenue by 62% Consumer (At-Home) Revenue b
Slide 17: Capex of € 20 Million in 2021
CAPEX OF € 20 MILLION IN 2021 << (VS € 11 Million in Q4 2020) CAPEX during Q1 mainly directed at maintenance, including the new woodchip pile in Aveiro, and environment, including the biomass boiler and the solar plants in Figueira da Foz (completed) and Setúbal (under construction) 20 14 Capex over
Slide 18: New 2030 Sustainability Agenda
NEW 2030 SUSTAINABILITY AGENDA << A responsible business agenda aligned with Navigator´s Purpose: People, their quality of life, and the planet's future are what inspire and move us. We want to share with society not only our outcomes, but also our knowledge, experience and resources in the search f
Slide 19: Energy – Solar Photovoltaic
ENERGY – SOLAR PHOTOVOLTAIC << The energy generation through renewable energy sources constitutes one of the company’s strategic axis. This is shown through relevant investments in solar plants in self consumption regime. The construction of a new solar photovoltaic plant in Figueira da Foz contribu
Slide 20: Strong FCF Generation in Q1
STRONG FCF GENERATION IN Q1 << Great cash flow generation of € 56.4 million in Q1 favourably comparing with € 15 million in Q1 2020; effective cost management of working capital together with a careful policy of supplier management positively impacted this result M€ -2.4 (+4%) 56.4 30.2 0.3 54.0 12.
Slide 21: Net Debt of € 624 Million
NET DEBT OF € 624 MILLION << Net debt declined € 56 million* vs year-end 2020 and € 176 million YoY, totaling € 624 million in Q1 796 776 800 M€ 740 732 700 644 680 624 693 715 683 677 2,4 2,3 2,3 2,3 2,3 559 1,9 1,9 1,7 1,8 1,7 1,6 1,5 1,5 1,3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 201
Slide 22: Debt Profile
DEBT PROFILE << Q1 impacted by the reimbursement of € 40 million and issuing of € 42.5 million. Significant restructuring occurring in April, in a global amount of € 240 million The Group was able to increase debt maturity to 3.5 years and reduce medium and long-term cost of debt Debt maturity profi
Slide 23: Outlook
Q1 2021 RESULTS PRESENTATION << 01 02 03 Market & Main Group Outlook Highlights Performance 22 22
Slide 24: Q1 2021 Summary
<< Q1 2021 SUMMARY • Q1 impacted by new surges in Covid-19 infections and subsequent lockdowns in some of Navigator’s key markets, with paper demand evolving at an identical rhythm as the previous quarter, and pulp prices showing a great recovery; • Planned maintenance stoppages during Q1 impacted p
Slide 25: Outlook for 2021
OUTLOOK FOR 2021 << While the economy recovers and the vaccination plan is being implemented, it is expected that pulp and paper market conditions remain globally positive Navigator’s efforts on an efficient cost management and focus on implementing its investment plan and sustainability projects to
Slide 26: Q1 2021 Results Presentation
Q1 2021 Results Presentation June 1st 2021
The Navigator Company — Q1 2021 Earnings Presentation on 6ix