Navigator Company Sa · EURONEXT:NVG
Navigator Company Sa — The Navigator Company — H1 2024 Earnings Presentation
25 slides from Navigator Company Sa's earnings presentation, Jul 25, 2024
Slide 1: Results Presentation Q2/H1 2024
RESULTS PRESENTATION Q2/H1 2024 JULY 25th 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: Agenda: Main Highlights
Q2/H1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 33
Slide 5: Q2/H1 2024 Strong Results
Q2/H1 2024 | STRONG RESULTS Strategic Growth and Market Leadership H1 2024: benchmark pulp prices reached record highs, and demand showed positive growth across all segments Pulp and Paper (P&W, Packaging, and Tissue) Forest Navigator Sales up by 9% YoY to € 1.066 million EBITDA totalled € 299 milli
Slide 6: Q2/H1 2024 Financial Highlights
Q2/H1 2024 FINANCIAL HIGHLIGHTS Strategic Growth and Market Leadership Millions € H1 2024 H1 2023 YoY Q2 2024 Q1 2024 QoQ ▪ Second highest 1st half results ever, Turnover 1 066 980 9% 529 536 -1% with EBITDA at € 299 million and an EBITDA 299 253 18% 165 133 24% EBITDA margin of 28%. Net Profit 159
Slide 7: Quarter Highlights
QUARTER HIGHLIGHTS Positive price evolution across all segments Turnover (M €) EBITDA (M€) & EBITDA Operational Cash margin (%) Flow (M €) ▪ Positive price evolution across all 536 529 165 501 478 481 493 131 122 124 125 133 132 segments: Pulp, Paper, Packaging and 103 100 97 110 100 31% Tissue 26%
Slide 8: EBITDA H1 24 vs. H1 23 Analysis
EBITDA H1 24 vs. H1 23 Analysis Lower market prices in UWF and Tissue more than offset by higher sales volumes and decreased cash costs +46 (+18%) M€ 19 299 69 2 253 55 -98 H1 23 A Price B Volume C Variable And FX Other H1 24 Fixed Cost Market prices moved upwards in Q2, Increased sales volumes driv
Slide 9: Agenda: Market & Group Performance
Q2/H1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 88
Slide 10: Pulp & Paper Prices
PULP & PAPER PRICES Pulp reaching historic highs 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 41% to 1380 1300 1,440 USD/ton by the end of the quarter, 1300 1220 currently at 1,440 USD/ton1: 1220 1140
Slide 11: P&W Paper Market
P&W PAPER MARKET Navigator leads UWF Price Increases in Europe 355 Kt YoY YtD 1 UWF MARKET CONDITIONS Global apparent demand grew by +1.3% in H1, with UWF recovering +1.6%, 272 Kt CWF grew by 0.6%. Mechanical fiber grew by 1.0%. ▪ In Europe apparent demand for UWF up by 14.8%, with recovery in all f
Slide 12: Pulp Market
PULP MARKET Supply and Demand Dynamics Drove Pulp Price Surge NAVIGATOR’S PERFORMANCE GLOBAL DEMAND 1 ▪ Pulp sales totalled 181 thousand tons EUCALYPTUS PULP demand has gained share within BCP and HW ▪ One of the most efficient pulp producers in Europe 27 Mt 28 Mt 2023 Ytd BALANCE S/D 2024 Ytd 16 Mt
Slide 13: Tissue Business
TISSUE BUSINESS Growth and Strong Performance MARKET SALES 1 2 H1 2024 (vs. H1 2023) Tissue paper demand remains strong, up 3.5% in Western Europe: TYPE SEGMENT2 GEOGRAPHY3 Finished Goods Reels At Home Away from Home Spain ❖ Recovery of household spending power (driven by lower inflation) 95% (vs.90
Slide 14: Packaging - From Fossil to Forest
PACKAGING - From Fossil to Forest 1st Half Sales Volume Up 90% YoY ▪ After a promising Q1, Q2 confirmed the recovery trend with robust and consistent demand. Segments where we operate grew by 25% YoY. FLEXIBLE PACKAGING BAGS CORRUGATED & SOLID MOULDED PULP (packs, pouches, food take-away, (retail, f
Slide 15: Debt Maturity and Liquidity
DEBT MATURITY AND LIQUIDITY 93% of the debt is at a fixed rate, allowing for low financing costs in a context of rising interest rates Debt Maturity Profile Total debt : € 726 million Average Maturity : 3 years ▪ New long-term debt: 530 M Sustainable ▪ 5, 6 and 7 years; ▪ €300 million; ▪ Financial c
Slide 16: Sustainable Financial Management
SUSTAINABLE FINANCIAL MANAGEMENT 60% of total debt is linked to sustainability 15 Source: NVG Results 2Q 2024
Slide 17: A Bioindustry on the Right Side of the Future
A BIOINDUSTRY ON THE RIGHT SIDE OF THE FUTURE 1st place in the Sustainalytics ESG Ranking -Paper and Forestry ▪ Sustainalytics' ESG Risk Rating 2024, placed Navigator at the top of the list of companies with the lowest ESG risk, on the lower fringe of the "low" risk level, with the vast majority of
Slide 18: Takeaways
TAKEAWAYS << ▪ Strong 1st half results ❖ operational flexibility, business-mix management ❖ efficient commercial strategy (prices and commercial mixes) ▪ Focus on managing variable costs ❖ Purchase price negotiations ❖ Consumption efficiency ▪ Delivering on our diversification plan: ❖ Tissue – Integ
Slide 19: Agenda: New Business Opportunities
QQ22//HH11 22002244 RREESSUULLTTSS PPRREESSEENNTTAATTIIOONN 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 18 18
Slide 20: Business Strategy | Diversification
BUSINESS STRATEGY l DIVERSIFICATION Reinforce the core business and focus on growth +++ Tissue ▪ M&A and /or Organic Grown E-fuels ▪ Biogenic CO2 ▪ e-Methanol ▪ e-SAFs Packaging CAPEX ▪ Flexible ▪ Cupstock ▪ Kraftliner ▪ Molded Pulp Energy ▪ Energy Efficiency Biomaterials ▪ Batteries ▪ Hygiene ▪ Sol
Slide 21: World Class Production Units
WORLD CLASS 10 PRODUCTION UNITS Based in 3 countries, with state-of-the-art technology Goods sold to 130 countries, across all 5 continents ZARAGOZA 3,970 EMPLOYEES With global capacity of: 38 Nationalities ▪ 1.6 Mt of Paper • Tissue – 35,000 tons reels 60,000 tons converting 1 ▪ 1.6 Mt of Pulp • En
Slide 22: Packaging – Moulded Pulp
PACKAGING – MOULDED PULP Focus on Sustainability, Innovation and Business Transformation AVEIRO SITE Navigator Mill gKRAFT Bioshield designed to substitute single use plastic and aluminum packaging: ❖ One of the largest in the World; ❖ 1st integrated plant in World using eucalyptus fibre; ❖ Market w
Slide 23: Agenda: Outlook
Q2/H1 2024 RESULTS PRESENTATION 01-Main Highlights 02-Market & Group Performance 03-New Business Opportunities 04-Outlook 22
Slide 24: Outlook
OUTLOOK << The global economic outlook has improved since January, but global growth trends remain historically low in the medium term. In the short term, economic prospects are only cautiously optimistic, as economic vulnerabilities remain in a context of persistently high interest rates and ongoin
Slide 25: Results Presentation Q2/H1 2024
RESULTS PRESENTATION Q2/H1 2024 JULY 25th 2024
The Navigator Company — H1 2024 Earnings Presentation on 6ix