The Navigator Company (NVG) Investor presentation summary

Business model and strategy

• Vertically integrated producer of pulp, paper, tissue, packaging, and bioenergy, with a focus on R&D and sustainability.

• Diversified product portfolio and premium segment focus drive resilience in cyclical markets.

• Expansion through M&A, notably in tissue (Accrol acquisition in UK) and packaging, with ongoing internationalization.

• Strong operational flexibility and responsible price/margin management underpin stable results.

• Investment in decarbonization and renewable energy supports long-term growth and ESG leadership.

Market position and operations

• Leading European producer of uncoated woodfree (UWF) paper and bleached eucalyptus kraft pulp (BEKP), with global reach.

• Over 90% of sales exported to 130 countries; significant market shares in Europe and globally.

• Integrated forestry operations manage 109,000 ha in Portugal and Spain, all certified by FSC and PEFC.

• Tissue business is #2 in Iberia and #4 in UK consumer tissue, with recent capacity and market share growth.

• Packaging segment expanding with gKRAFT brand and new molded pulp products targeting plastic substitution.

Financial performance

• 2023 turnover reached €1,953M with EBITDA of €736M and a 30% margin, maintaining a 14-year average margin of 24.8%.

• Q1 2024 saw record first-quarter sales of €536M, EBITDA of €133M, and net profit of €64M.

• Net debt/EBITDA ratio at 0.88x, with 92% of debt at fixed rates and strong liquidity.

• Dividend yield averaged 8.2% in 2023, with a total return of 47.4% from 2019-2023.

• 63% of recent capex directed to ESG and expansion, supporting decarbonization and efficiency.