Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — FY2022 Earnings Presentation
26 slides from Navigator Company Sa's earnings presentation, Feb 23, 2023
Slide 1: Q4/FY 2022 Results Presentation
THE NANIGATOR COMPANY : Wit _ Q4/ FY 2022 Results Presentation = x i, February 23" 2023 See SS
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 Fernando Araújo Executive Directors João Lé João Paulo Oliveira Nuno Santos Investor Relations Ana Canha 2
Slide 4: Main Highlights
Q4 / FY 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 33
Slide 5: 2022 | All-Time High Results
2022 | ALL-TIME << HIGH RESULTS • All-time high FY Results: • Sales up to € 2,465 million (+54%); • EBITDA increased to € 736 million (+108%), 30% of sales (vs 22%); • Net Earnings of € 393 million (+129%); • Free Cash Flow of € 463 million (+97%). ▪ S/D imbalance, the dynamic of international pulp,
Slide 6: FY 2022 Financial Highlights
FY 2022 FINANCIAL HIGHLIGHTS << The best FY Financial Performance ever with EBITDA of € 736 million (+108% YoY) and an annual EBITDA margin of 30%. Q4 Q3 In millions € FY 2022 FY 2021 FY’22-FY’21 QoQ 2022 2022 Turnover 2,465 1,596 54% 642 680 -5.6% EBITDA 736 355 108% 184 207 -11.1% EBITDA /Sales 30
Slide 7: Main Quarter Highlights
MAIN QUARTER HIGHLIGHTS << Turnover, EBITDA and operating cash flow registered outstanding performances in 2022. However, in H2 fears of an economic slowdown started putting pressure on demand, at a time when stocks along the entire supply chain were high, and logistics were returning to normal. Tur
Slide 8: EBITDA YoY Analysis
EBITDA YoY Analysis << M€ Sales dynamic, favorable price evolution across all businesses and focus on productivity outweighed rising costs in raw materials, energy and logistics. +382 (+108%) 684 -8 -53 52 736 -14 -279 355 R21 Price Volume Logistics Costs FX Other R22 A B C UWF volumes grew 2% YoY,
Slide 9: EBITDA QoQ Analysis
EBITDA QoQ Analysis << M€ Fears of an economic slowdown and abnormally high level of stocks across supply-chain as drivers to lower demand. -23 (-11%) 207 7 3 -14 41 184 -59 -1 R22 Q3 Price Volume Logistics Costs FX Other R22 Q4 A B C Stable prices in Pulp and UWF. Cost increases in raw materials Po
Slide 10: EBITDA Q4 2021 vs Q4 2022
EBITDA Q4 2021 vs Q4 2022 << M€ Favorable price evolution across all businesses outweighed rising costs in raw materials, energy and logistics. +76 (+70%) 175 -17 -7 10 184 9 -94 109 Q4 21 Price Volume Logistics Costs FX Other R22 Q4 R21 Q4 A B C Superior prices across all Sales volume decrease acro
Slide 11: Market & Performance
Q4 / FY 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 10 10
Slide 12: Pulp & Paper Prices
PULP & PAPER PRICES << PRICES AT HISTORICAL LEVELS BHKP pulp price index in Europe up 21% to 1,380 USD/ton by the end of the year, currently at 1,330 USD/ton1. A4 B-copy prices up 30% (YoY) to 1,331 EUR/ton by the end of the year, currently at 1,328 EUR/ton1. European market paper price – A4 B-Copy
Slide 13: Update on the Pulp Market
UPDATE ON THE PULP MARKET << • BHKP in Europe | 1,380 USD/t1 (+21% vs start of the year). PRICE • BHKP in China | 828 USD/t1 (+41% vs start of the year). • 2022 European BHKP average prices (EUR/t) 42% higher YoY. • Global imbalance: Different factors contributed on the supply side, most notably: i.
Slide 14: UWF Market Conditions
UWF MARKET CONDITIONS << • Index price for A4 paper at 1,331 EUR/t1 (+30% vs beginning of the year). PRICE • Average prices during 2022 up to 1,216 EUR/t compared to 2021 (844 EUR/t; +44%). • Global price increases for Paper&Board throughout 2022 in Europe, Americas, Africa and the Middle East, driv
Slide 15: Navigator Paper Performance
NAVIGATOR PAPER PERFORMANCE << ▪ In 2022, the Company managed to improve its product mix, achieving a remarkable share of 67% of premium product sales (+16 pp, YoY) and 78% of mill brand sales (+8 pp, YoY). ▪ Navigator´s market-share among its European competitors increased in Europe (+4.2 pp, YoY),
Slide 16: Tissue Business
TISSUE BUSINESS << Solid tissue performance with sales of Finished Goods up by 2% YoY. SALES1 12M 2022 (vs 12M 2021) Type Segment2 Geography2 Finished 81% Portugal 46% Goods At Home 65% (47%) (77%) (63%) Reels 19% Spain 37% Away from Home 35% (36%) (23%) (37%) Extra Iberia 17% (17%) • Total tissue r
Slide 17: GC Consumer Business Acquisition in Spain
GC Consumer business acquisition in Spain << This acquisition is part of an ambitious plan for diversification, GC capacity strengthening the Group’s position as the 2nd largest Iberian producer of tissue, with an annual production capacity that now MP: 35 kton stands at 165,000 tons. CVT: 60 kton S
Slide 18: From Fossil to Forest Formed Fiber
FROM FOSSIL TO FOREST << FORMED FIBER FLEXIBLE PACKAGING BAGS CORRUGATED & SOLID BOARD (packs, pouches, food take-away, envelopes, release liners etc.) (retail, food & filling industries, etc.) (boxes and trays for agriculture, industry, • New product line of formed fiber retail, take-away, e-commer
Slide 19: Free Cash Flow
FREE CASH FLOW << −Strong free cash flow generation of € 463 million (vs € 235 million in 2021). −Trade working capital (Inventories, Clients, Suppliers) in line with the activity expansion. -93 M€ (-17%) 555 78 463 -113 113 -112 71 -131 Operating CAPEX Inventories Clients State & Suppliers Other Fr
Slide 20: Net Debt
NET DEBT << Net Debt reduction to € 382 million, despite the € 100 million dividend payment in H1 and € 150 million reserves distribution by the end of the year. Net Debt/EBITDA ratio remains at low levels (0.52x), reflecting the Group’s solid financial position. M€ Without IFRS 16 19
Slide 21: Maturity and Liquidity
MATURITY AND LIQUIDITY << Well-balanced debt maturities, 94% of total debt issued on a fixed-rate basis, ensuring low financing costs in a scenario of sharply rising interest rates and close to 40% of total debt issued on a sustainability basis. Debt maturity profile (December 22) € 150M Sustainabil
Slide 22: Sustainability Leader
SUSTAINABILITY LEADER << A BIOINDUSTRY ON THE RIGHT A A- SIDE OF THE FUTURE / CLIMATE / FOREST Sustainalytics’ 2023 Top- LEADERSHIP Rated ESG Companies SBTi has approved Navigator’s near-term Leader in Sustainable Finance science-based GHG emissions targets ~40% of total borrowing issued on a sustai
Slide 23: Takeaways
<< TAKEAWAYS • All-time high results: • Sales up to € 2,465 million (+54%); • EBITDA grew to € 736 million (+108%), 30% of sales (vs 22%); • Net Earnings of € 393 million (+129%); • Free Cash Flow of € 463 million (+97%). • Solid financial position: • Net Debt/EBITDA ratio continues to move downward
Slide 24: Group Outlook
Q4 / FY 2022 RESULTS << PRESENTATION 01 02 03 Market & Main Group Outlook Highlights Performance 23 23
Slide 25: Outlook
OUTLOOK << Q1 started with fears of an economic slowdown, but prospects for the global economy are improving, as worst fears fade. Slow start in Q1 2023: ▪ Economic slowdown and increased pipeline stocks as drivers to current lower order inflow; ▪ For Q1 we do not anticipate a significant improvemen
Slide 26: Q4/FY 2022 Results Presentation
THE NANIGATOR COMPANY : Wit _ Q4/ FY 2022 Results Presentation = x i, February 23" 2023 See SS