THE NAVIGATOR COMPANY Q3/9M 2023
Results
Presentation
October 30th 2023
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 only. Some statements in this presentation are forward-looking, based on assumptions and current expectations of future events. Although The Navigator Company, S.A. believes that these were reasonable when made, such statements are inherently subject to significant known and unknown risks and contingencies, which relate to factors that are beyond the ability of The Navigator Company, S.A. to control or estimate precisely, such as international economic conditions, foreign exchange fluctuations, credit markets, the cost of raw materials, legal and regulatory requirements, including measures adopted in connection with the prevention of the dissemination of SARS-CoV-2/COVID-19 and that could cause actual results to differ substantially from those expressed or implied by such statements.
Except as required by any applicable law or regulation, The Navigator Company S.A. or any of its affiliates, directors, officers, employees or advisers or any other person assumes no obligation whatsoever to update the information contained in this presentation or to notify a reader in the event that any matter stated herein changes or becomes inaccurate.
1
P A R T I C I P A T I O N<<
Executive Directors
Investor Relations
António Redondo
Fernando Araújo
António Quirino
Dorival Almeida
João Lé
Nuno Santos
Ana Canha
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Q3/9M 2023 RESULTS
PRESENTATION
<<
0102 03
Main | Market & | |
Group | Outlook | |
Highlights | ||
Performance | ||
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Q3/9M 2023 | DELIVERING RESULTS
<<
DESPITE ADVERSE MARKET CONDITIONS
- Extremely difficult market, with pulp prices falling and UWF and Packaging market-driven weak apparent demand during the first 9 months;
- Pulp and paper Q3 demand started to gradually recover, in line with destocking phasing out;
- Tissue segment continues to perform well, driven by the integration of Tissue Ejea, with better-than-expectedsynergies, and significant price resilience;
- Sharp drop in cash costs in all segments: between 20% and 28% in the Pulp and Paper segments and close to 17% in Tissue, when compared with the last quarter of 2022;
- EBITDA increased by 1% QoQ to € 124 million, 26% of sales;
- Strong Capex plan of € 142 million (YtD), 61% ESG - aiming at decarbonization targets and efficiency gains;
- Strong financial position - Net Debt/EBITDA ratio at 0.98x;
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Q3/9M FINANCIAL
HIGHLIGHTS
<<
Strong quarterly results with EBITDA of € 124 million and an EBITDA margin of 25.7%.
Solid financial position: net debt/EBITDA ratio at 0.98x
In million (€) | 9M 2023 | 9M 2022 | YoY | Q3 2023 | Q2 2023 | QoQ |
Turnover | 1,461 | 1,823 | -20% | 481 | 478 | +1% |
EBITDA | 377 | 552 | -32% | 124 | 122 | +2% |
EBITDA /Sales | 26% | 30% | -4 pp | 26% | 26% | 0 pp |
CAPEX | ||||||
142 | 65 | +77 | 30 | 71 | -41 | |
Free Cash Flow | ||||||
33 | 332 | -299 | 23 | -21 | +44 | |
Net Debt | 550 | 373 | +177 | 550 | 573 | -23 |
Net Debt1/EBITDA | 0.98 | 0.56 | +0.42 | 0.98 | 0.89 | +0.09 |
1 Without IFRS 16
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MAIN QUARTER HIGHLIGHTS | << |
Strong pulp volumes (more availability of pulp for sale due to lower paper and packaging integration) and
improvement of paper sales in the quarter. Strong performance on tissue finished goods.
Turnover (M €) | ||||||
650 | 680 | 642 | ||||
405 | 476 | 492 | 501 | 478 | 481 | |
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 |
EBITDA (M €) | Operational Cash |
Flow (M €) |
223 207 184 | 131 | 124 | 151 151 171 | ||||||||||||||
96 | 109 122 | 122 | 79 | 93 | 83 | 103 100 | 97 | ||||||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 2021 2022 2022 2022 2022 2023 2023 2023 | 2021 2021 2022 2022 2022 2022 2023 2023 2023 |
Paper sales (k t) | Pulp sales (k t) |
Tissue sales 1 (k t)
380 | 394 | 407 400 | 366 | |||||
327 | ||||||||
10%10% | 15% 18% | 10% | 273 | 260 | 277 | |||
0% | ||||||||
-8% | -7% | -9% | ||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 | 2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 |
124 154
86 | 78 | 92 | |||||||||||||
72 | |||||||||||||||
55 | 17% | 53 | 53 | ||||||||||||
15% | |||||||||||||||
5% | 12% | - | 4% | ||||||||||||
2% | 1% | ||||||||||||||
- | 22% | -32% | |||||||||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 2021 2022 2022 2022 2022 2023 2023 2023
41 | ||||||||
5% | 1% | 12% 19% | 6% | 10% | 0% | 37 | ||
28 | 27 | 24 | 24 | -2% | -10% | |||
26 | 25 | |||||||
26 | ||||||||
Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 |
2021 2021 2022 2022 2022 2022 2023 2023 2023 |
Average Price Evolution (Quarter) (influenced by pure price, exchange rates and mixes) | 1 Q2 & Q3 2023 sales includes Tissue Ejea |
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EBITDA YoY Analysis
<< | |
M € | |
Downward trend on Pulp and UWF market prices, Tissue above 2022 price levels. |
Cash costs trending to Q1 2022 levels, with wood and energy costs still above 2022.
552
-175
(-32%)
29 | ||||||||||
-121 | 377 | |||||||||
-38 | -27 | -11 | -7 | |||||||
R22 | Price | Volume | Logistics | Costs | FX | Other | R23 | |
A | B | C | ||||||
A | Downward trend on Pulp and UWF | B | Decrease in order inflow in UWF | C | Favorable evolution of external fibers | |||
market prices, with Tissue | (-29%) partially offset by higher | and freight costs. Fixed costs increasing | ||||||
presenting noticeable price | Pulp sales (+83%) | below inflation and increased efficiency | ||||||
resilience | in specific consumption of key raw | |||||||
materials | ||||||||
7 |
EBITDA QoQ Analysis | ||||||
<< | ||||||
M € | ||||||
Downward trend on market prices offset by increased volumes and significant reduction | of | |||||
cash costs in all segments.
+1
(+1%)
122 | 27 | 1 | 124 | ||
-2
121
-37
R23 Q2 | Price | Volume | Logistics | Costs | |
A | B | C | |||
A | Downward trend on market | B | Increase in sales volumes across all | ||
prices across all segments, led | segments due to an increase in client | ||||
by PIX BHKP deterioration | orders, with the destocking gradually | ||||
phasing out |
FX | Other | R23 Q3 |
Declining costs with freight and raw C materials, namely Wood, External
Fibers and Chemicals due to economic environment and negotiation efforts
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EBITDA Q3 23 vs Q3 22 Analysis
M €
<<
Downward trend on market prices. Cost of raw materials and logistics freight maintain positive
evolution improving from 2022 levels
-84
(-40%)
207
32 | 15 | |
124 | ||
-8 |
16
3
-142
R22 Q3 | Price | Volume | Logistics | Costs | FX | Other | R23 Q3 |
A | B | C | ||
A | Downward trend on market prices, | B | Decrease in client orders in UWF | |
particularly in Pulp and UWF, | (-31%) offset by higher Pulp sales | |||
penalized by sales geographic mix. | (+191%) |
Favorable evolution of commodities and
- freight costs, with overall costs lower than Q3 2022 levels, but with energy with a negative trend
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The Navigator Company SA published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 18:21:58 UTC.
