Navigator : Apresentação de Resultados Q1 2024

Results

Presentation

Q 1 2 0 2 4

MAY 21st 2024

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 The Navigator Company S.A. or any of its subsidiaries' undertakings, affiliates, directors, officers, employees or advisors or any other person as to the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation or of the views given or implied or any other material discussion in connection with this presentation.

This presentation has been prepared by The Navigator Company S.A. for information purposes only. The Navigator Company S.A. or any of its affiliates, directors, officers, employees or advisers or any other person shall not have any liability whatsoever (including in case of omission, negligence or otherwise) for any losses, errors or omissions howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith or with respect to their reliance upon the completeness and accuracy of any such information, as well as any damages resulting hereof.

1

Executive Directors

Investor Relations

PARTICIPATION

António Redondo

Fernando Araújo

Nuno Santos

João Lé

Dorival Almeida

António Quirino Soares

Ana Canha

2

Q1 2024 RESULTS

PRESENTATION

01-Main Highlights

02-Market & Group Performance

03-New Business Opportunities

04-Outlook

Q1 2024 | RESULTS

Strategic Growth and Market Leadership

Forest

Bioenergy

Pulp

Eucalyptus

Globulus

Packaging

Paper

Tissue

Q1 2024 with a strong start to the year, as pulp and paper demand continues to improve, a trend already seen in H2 2023

Pulp and paper prices increased, driven by dynamic demand and supply constraints (e.g.: strikes in Finland and logistical restrictions in the Red Sea)

Navigator Sales up by 9% QoQ and 7% YoY to €536 million

EBITDA stood at €133 million, up 7% QoQ and 2% YoY, 25% EBITDA margin

Navigator's UWF paper sales price increase implemented (November-April):

• up by 3% in Europe, 9% in Overseas, and 5% in the total sales mix

Sharp drop in cash costs:

• YoY: Pulp, UWF and Tissue cash costs drop by 9% to 16%

Delivering on our diversification plan:

• Tissue - Offer to acquire Accrol, a leading independent converter in the UK's Consumer Tissue market, effective on May 24th.
• Packaging - Moulded Pulp project proceeds as planned - start up 2H 2024

4

Q1 2024 FINANCIAL HIGHLIGHTS

• Sales up by 9% QoQ and 7% YoY to €536 million - Highest ever first quarter results
• Value-addedcapex of €41 million
• • 32% ESG investments
• Solid financial position
• • Net Debt/EBITDA ratio at 0.88x

In millions €	Q1 2024	Q1 2023	YoY	Q4 2023	QoQ
Turnover	536.4	501.2	7%	492.7	9%
EBITDA	133.3	130.7	2%	125	7%
Net Profit	64.1	71.7	-11%	74.2	-14%
EBITDA /Sales	24.9%	26.1%	-1.2 pp	25.4%	-0.5 pp
CAPEX	40.7	41.7	-1.0	44.4	-3.7
Free Cash Flow	46.3	30.8	15.4	59.9	-13.6
Net Debt	443.6	351.4	92.2	489.9	-46.3
Net Debt1/EBITDA	0.88	0.47	0.41	0.98	-0.09

5

1 Without IFRS 16

• Paper sales up by 10% QoQ and 29% YoY
• Pulp sales up by 20% QoQ and YoY
• Tissue sales (finished products and reels) down 6% YoY, due to lower production availability, which affected sales of reels, and increased 59% YoY, driven by the integration of Navigator Tissue Ejea.

1 Q2, Q3, Q4 2023 and Q1 2024 sales includes Tissue Ejea

QUARTER HIGHLIGHTS

Stable quarterly results

Turnover (M €)

EBITDA (M €)

Operational Cash

Flow (M €)

492

650 680 642

501 478 481

493 536

223 207

184

151 151

171

122

131 122 124

125

133

103 100

97

110 100

83

Q1

Q2

Q3

Q4

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Q4

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Q2

Q3

Q4

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Q2

Q3

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Q1

2022 2022 2022 2022 2023 2023 2023 2023 2024

2022 2022 2022 2022 2023 2023 2023 2023 2024

2022 2022 2022 2022 2023 2023 2023 2023 2024

Paper sales (k t)

Pulp sales (k t)

Tissue sales 1 (k t)

	407 400								17%	12%					15%		20%
	366						5%					154		7%						41	40
						322 354			1%				10%					37	38
327											92	124	-1%	92	110	12%	19%	6%	10%
				273		277										0%
				260			78							-10%
15%	18%					72	53					25	27	24	-2%	-10%	2%
									53 -22%					26		24			-3%
		10%	0%	-8%	-7%	-10%-2%	2%						-32%				-
														-
									Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	-
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2022 2022 2022 2022 2023 2023 2023 2023 2024	2022 2022 2022 2022 2023 2023 2023 2023 2024	2022 2022 2022 2022 2023 2023 2023 2023 2024

Average Price Evolution (Quarter) (influenced by pure price, exchange rates and mixes)

6

EBITDA Q1 24 vs. Q1 23 Analysis

Falling prices influenced by pulp market dynamics were more than offset by an

increase in volumes and a reduction in cash costs

		+3
M €		(+2%)
	51
					133
131
	0
			-8

42

-91

9

1Q23	A Price B Volume	Logistics C	Variable	FX	Other	1Q24
			And Fixed

COST

A	Market prices	below 2023 levels	B	Increase in sales volumes across
all business	segments driven	by
across all business segments (UWF
		growth in	client orders	and
	-16%, Pulp -18%, Tissue -11%)
		expanded production capacity
					7

Sharp cost reduction in raw materials, C in particular, wood and chemicals.

Energy and freight costs also tending to move downwards

EBITDA Q1 24 vs. Q4 23 Analysis

Higher sales volumes and market prices, driven by a stronger order book

and upward trend in PIX BHKP

										+8
M €								(+7%)
				14	12	4									133
125
						-2
										-1
											-19

R23 Q4	A	Price	B	Volume	Logistics	C	Variable	FX	Other	R24 Q1
				and fixed

COST

Upward trend in market prices

1. across all segments (UWF +2%, Pulp +7%, Tissue +2%), led by PIX BHKP increase

B	Rise in sales volume in both UWF	C	Increase in cost of wood and external
(+10%) and market pulp (+20%)	fibers, partially offset by a decline in
	due to stronger order books		electricity and natural gas market
			prices
	8

Q1 2024 RESULTS

PRESENTATION

01-Main Highlights

02-Market & Group Performance

03-New Business Opportunities

04-Outlook