Quarterly Report • May 31, 2022
Quarterly Report
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| 1. | PERFORMANCE 1st QUARTER 2022……………………………………2 | |
|---|---|---|
| 2. | LEADING INDICATORS……………………………………………………3 | |
| 3. | ANALYSIS OF RESULTS……………………………………………………4 | |
| 4. | QUARTERLY OPERATING FIGURES……………………………………8 | |
| 5. | OUTLOOK………………………………………………………………………10 | |
| 6. | CONSOLIDATED FINANCIAL STATEMENTS AND NOTES……….12 |
The early months of 2022 were marked by Russia's invasion of Ukraine and the start of the war in Europe. Europe lives today in an adverse geopolitical environment: the near future is expected to be challenging, in a highly uncertain and unstable international context. Raw material costs have risen across the board, especially in the case of chemicals, energy, and logistics. The constraints have become more severe and Navigator is managing this unfavourable trend by working concertedly to improve efficiency and boost productivity, softening the impact of higher variable costs by containing consumption, and through ongoing endeavours to control fixed costs.
In this hostile environment, Navigator has succeeded in increasing its sales, offsetting the heavy pressures on costs. Operating in competitive international markets, where prices are set based on expectations and the balance between supply and demand, it is the resilience and flexibility of its business model that supported the strong results. The business model based on vertical integration and the excellent quality of the fibre allowed to operate with competitive efficiency. The deep knowledge of all teams and the differentiation strategy based on premium products and mill brands with high prestige and international reputation, supports the good performance of the Company in this highly uncertain market environment.
The volume of pulp sales was down by 9% on the fourth quarter, and 1% lower than in the first quarter of 2021, also given by the need to replenish pulp stocks as well as increased integration of pulp into paper;
The volume of tissue sales fell by 6% in relation to the previous quarter and 4% YoY, essentially due to a sharp slowdown in sales of reels, while the finished product segment continued to record growth;
| Q1 | Q1 | Change (8) | Q4 | Change (8) | |
|---|---|---|---|---|---|
| Million euros | 2022 | 2021 | Q1 22/Q1 21 | 2021 | Q1 22/Q4 21 |
| Total Sales | 492.2 | 340.8 | 44.4% | 476.2 | 3.4% |
| EBITDA (1) | 121.6 | 70.6 | 72.3% | 108.7 | 11.8% |
| Operating Profits (EBIT) | 89.4 | 40.1 | 123.1% | 72.8 | 22.8% |
| Financial Results | - 4.7 | - 9.7 | 51.7% | - 5.0 | 6.6% |
| Net Earnings | 50.6 | 23.5 | 115.2% | 57.2 | -11.5% |
| Cash Flow | 82.8 | 54.0 | 28.8 | 93.1 | - 10.3 |
| Free Cash Flow (2) | 77.0 | 56.4 | 20.5 | 52.1 | 24.9 |
| Capex | 14.7 | 20.1 | - 5.4 | 28.3 | - 13.6 |
| Net Debt (3) | 517.9 | 623.6 | - 105.7 | 594.8 | - 77.0 |
| EBITDA/Sales | 24.7% | 20.7% | 4.0 pp | 22.8% | 1.9 pp |
| ROS | 10.3% | 6.9% | 3.4 pp | 12.0% | -1.7 pp |
| ROCE (4) | 22.1% | 9.5% | 12.6 pp | 17.4% | 4.7 pp |
| ROE (5) | 19.1% | 9.1% | 10.0 pp | 22.1% | -3.0 pp |
| Equity Ratio | 40.6% | 39.9% | 0.7 pp | 41.4% | -0.7 pp |
| Net Debt/EBITDA (6)(7) | 1.28 | 2.33 | -1.05 | 1.68 | -0.40 |
Operating profits + depreciation + provisions;
Variation net debt + dividends + purchase of own shares
Interest-bearing liabilities - liquid assets (not including effect of IFRS 16)
ROCE = Annualised operating income / Average Capital employed (N+(N-1))/2
ROE = Annualised net income / Average Shareholders' Funds last -1 months
(Interest-bearing liabilities - liquid assets) / EBITDA corresponding to last 12 months 7. Impact of IFRS 16: Net Debt / EBITDA Q1 2022 of 1.41; Net Debt / EBITDA Q1 2021: 2.53;
Variation in figures not rounded up/down
In the first quarter of 2022, The Navigator Company recorded a turnover of € 492 million, with paper sales accounting for around 67% of turnover, pulp sales 11%, tissue sales 9% and energy sales 13%.
Global demand for printing and writing papers rose by 0.6% (YTD February), with UWF paper recording growth of 0.7% and coated papers 4.5%; papers produced from mechanical pulp saw demand drop by 4.1%.
In Europe, apparent demand for UWF paper fell by 6.8% over the quarter. This drop in apparent demand results from the calculation model (based on deliveries by producers) which was highly influenced by the constraints on supply observed in Europe (down 9% YoY, especially after a mill closure in Scandinavia at the end of Q3 2021), which were joined by the strike in the same region, starting in January, and the low level of imports resulting from current logistical difficulties. Without these affects, the apparent demand for UWF paper in Europe would certainly follow a positive evolution.
In the United States, demand for UWF paper held steady in the first quarter (down 0.1% YoY), and in other world regions growth in UWF demand was in the order of 2.1% (YTD February).
The benchmark index for office paper in Europe stood at 1,104 € /ton at the end of March, up from its level at the start of the year (976 €/ton). It should be stressed that Navigator has endeavoured to implement a responsible pricing policy that nonetheless enables to protect its margins, anticipating the impacts of higher costs. Despite the price increases implemented over the quarter, unit margins in paper business remained practically unchanged in relation to the previous period.
In this context, Navigator has maintained a healthy order book, in line with the industry and reflecting the sharp drop in available supply in the main regions where it operates. Navigator's UWF sales totalled 327 thousand tons, down by 2.6% on the same period last year and 17.2% on the previous quarter, penalised by the logistical constraints currently being experienced, and by the need to replenish stocks. The value of sales was driven by rising prices internationally, with which Navigator kept pace. The value of sales was therefore up by around 39% on the same period in 2021 and down by 4.6% on the previous quarter. It should be noted that Navigator exported 93% of its UWF sales in the first quarter, only performing 7% of its sales on the domestic market, where the price increase was more modest.
With the growing order inflows and limitations on supply, combined with substantial increases in maritime freights, price rises in markets outside Europe were around the double than those on European markets, in relation to the same period in 2021. At the same time, within Europe, price increases were more significant outside the Iberian markets.
The Group has continued to consolidate its packaging business and both production and sales dynamic have continued according to plan.
The PM1 and PM3 machines at the Setúbal mill can offer a flexible response and complementarity of products in terms of grammage ranges available from each machine.
PM1 is now fully dedicated to packaging products (white and brown), although still able to produce UWF paper whenever needed. The packaging sector totalled sales of € 21 million in the first quarter, circa half of the turnover achieved during 2021. Products are sold to manufacturers of bags and flexible packaging and also to producers of corrugated cardboard, especially in higher value-added niches (such as boxes for food use, or packaging, where printing and food contact certification, which recycled fibre is unable to offer, are valued).
Sales have also reflected the current healthy levels of demand, the warm reception given to Navigator's products, and efforts to develop the customer base and innovative products, dedicated at higher value-added applications and market niches.
Our product model, based on Eucalyptus globulus fibre, guarantees the production of seven times more area of packaging (m²) per hectare of forest (in comparison with Scandinavian pine, for example), features half the specific consumption of wood (in comparison with North American pine), and allows savings of up to 14% in grammage for the same strength when compared with rival fibres. Certified for food contact, our products are stronger, more hygienic, and safer for food industry use than, for example, packaging based on recycled fibre. What is more, they result in packaging that is better suited for recycling, with better quality recycled products.
The ambitious product development plan launched in 2020 will continue, not only expanding ranges in terms of grammages, but also innovating and developing new sustainable packaging solutions, able to replace fossil/plastic-based products.
A further two patents have been filed in 2022 in relation to the gKraft project, reflecting the Company's efforts to innovate and improve efficiency and its focus on paper quality, namely regarding strength and printing.
At the same time, RAIZ has conducted an extensive research into what are called "sustainable functional barriers". These more environmentally friendly barriers are intended to replicate, using natural products, the functional properties offered by films made from plastics, and more widely by fossil-based products.
Navigator has been expanding the scope of its operations in this segment and invested in serving "filling" industries, focused on food products, such as flour, sugar, pasta and cereals for human consumption, and on non-food sectors, such as manufacturers of mortars and animal feed, with packages or bags that can contain up to 30 or 40 kg.
In order to communicate to the market the currents of change underway in the world of packaging materials, Navigator has launched a logo for the gKraft brand, using the hashtag #From Fossil to Forest, which can be used by all producers using gKraft paper as a raw material, underlining their commitment to create a more sustainable world and, at the same time, enabling our partners to be eligible for future brand initiatives. This quality seal offers end-consumers an unique assurance that the product they are using is a natural, recyclable and biodegradable solution, and helps to sequester carbon, produce oxygen, protect biodiversity, fertilise the soil and combat climate change. This seal also guarantees that the products do not incorporate recycled fibres, and are therefore free of the associated
contaminants, highly harmful to human health, making them guaranteed for contact with food.
The quarter saw a significant rise in benchmark prices in the pulp market. The benchmark index for hardwood pulp in Europe (PIX BHKP in Euros) was up by 6% at the end of the quarter in relation to the start of the year, at 1,069 Euros/ton, with an expressive evolution of approximately 58% in average prices in the first quarter of 2022 vs. 1st quarter of 2021. The benchmark index for hardwood pulp in China has climbed by 28% since the start of the year, ending the quarter at 737 USD/t.
This improvement in pulp prices in Europe was sustained by several factors, among which the growing demand for pulp from the paper industry (mainly specialities, printing and writing paper, packaging and, to a lesser extent, tissue) and to several negative shocks on the supply side in the pulp market. In Northern Europe, a strike at a major competitor removed more than half a million tons of pulp from the market. Annual maintenance shutdowns were concentrated in Q1 (it is estimated that almost half of the annual maintenance shutdowns on short fibre lines took place in Q1). The Russian invasion of Ukraine and the consequent embargo on wood imports from Russia drastically reduced supplies of imported birch in Northern Europe (estimated to affect around 1 million tons of annual output of this type of pulp). The interruption of supplies of the chemicals needed for pulp manufacture and the shortfall on logistical services created operational constraints to market pulp production in Russia, restricting its supply in the Chinese market, where most of the pulp is sold. At the same time, logistical constraints were further exacerbated by China's strict zero-Covid strategy.
Navigator started 2022 with a relatively low level of pulp stocks. Combined with increased incorporation of pulp into paper, this limited the amount of pulp available for sale over the period. Sales accordingly stood at 78 thousand tons, reflecting a reduction of 1% in relation to the same period in 2021 and of 9% in relation to the previous quarter. Rising pulp prices over the past 12 months enabled Navigator to offset the reduction in volumes, with turnover increasing 52% YoY, although down 5% when compared to the previous quarter.
The steep upward trend over the quarter in the costs of energy, logistics and commodities, and, particularly in prices for chemicals and pulp, placed heavy pressure on the margins of tissue manufacturers, leading a large number to announce price increases. Under this adverse environment, Navigator anticipated the sharp increase in costs, which will continue to be felt, and kept pace with the upward course of prices in the sector. Despite these price increases, the unit margin in tissue business has been significantly squeezed when compared with the same period in 2021.
In addition to pursuing a responsible pricing policy, Navigator continues to implement prudent management of its variable and fixed costs, in order to balance out the negative impacts of rising costs of energy, logistics and commodities.
The volume of tissue sales stood at 26 thousand tons, down by close to 4% in relation to Q1 2021 and 6% in relation to the previous quarter. The YoY reduction was essentially due to a sharp slowdown in sales of reels, given that growth was recorded in sales of finished products (up 5% vs. 1st quarter of 2021 and relatively stable when compared with the final quarter), both at home and export markets. Rising prices drove the value of sales, resulting in growth of around 17% in relation to the first quarter of 2021, and 5% in relation to the final quarter.
The focus on investment in the Tissue segment remains. After the launch of the awardwinning Amoos Aquactive TM, an innovative roll of household paper incorporating soap, designed for cleaning surfaces, which won the 2022 Five Stars Award, The Navigator Company launched the first range of toilet paper with a long-lasting perfume: Amoos Air Sense TM.
The sophistication and innovative character of products such as Amoos AquactiveTM, and now Air SenseTM, thanks to the work developed together with RAIZ, the Group's forestry and paper research institute, which is home to a team of top researchers, as well as laboratories with state-of-the-art technology, dedicated to research and innovation applied to products in a range of segments, including pulp, paper, tissue, packaging and many other lines of research.
To highlight that all paper produced by Navigator is sustainable, environmentally responsible and biodegradable, obtained from a renewable natural resource, planted specifically for this purpose and made from virgin eucalyptus fibre certified under FSC® (Forest Stewardship Council) standards.
Since January this year, the Group's renewable cogeneration plants have been selling their power output at market prices, rather than at the regulated sales tariff, in accordance with Article 4-B para. 1 b) of Decree-Law 23/2010, of 25 March, as subsequently amended.
This change in the pricing system was introduced by Decree-Law 119-A/2021, of 22 December, establishing, inter alia, an exceptional set of rules for cogeneration, allowing for sale on the market for a maximum period of one year, after which it returns to the special system with regulated tariffs.
Sale at market prices enabled Navigator to offset, in part, the higher prices paid for the component of energy purchases not yet fixed for the period. It should be noted that the Iberian power market recorded significantly high prices, closing the quarter with an average price of 228.61 €/MWh, as compared to an average price of 44.75 €/MWh recorded in the first quarter last year.
In this context, in the first quarter of 2022, electricity sales totalled € 65 million, up by 108% in relation to the same period in 2021.
| Pulp | |||
|---|---|---|---|
| (in 000 tons) | Q1 2021 | Q1 2022 | Q1 22/ Q1 21 |
| BEKP Output | 337.1 | 378.2 | 12.2% |
| FOEX – BHKP Euros/ton | 650 | 1030 | 58.4% |
| FOEX – BHKP USD/ton | 782 | 1155 | 47.6% |
| Paper | |||
| (in 000 tons) | Q1 2021 | Q1 2022 | Q1 22/ Q1 21 |
| UWF Output | 348.3 | 366.0 | 5.1% |
| FOEX – A4- BCopy Euros/ton | 809 | 1038 | 28.3% |
| Tissue | |||
| (in 000 tons) | Q1 2021 | Q1 2022 | Q1 22/ Q1 21 |
| Reels Output | 29.4 | 30.0 | 2.0% |
| Energy | |||
| Q1 2021 | Q1 2022 | Q1 22/ Q1 21 | |
| Production (GWh) | 479.2 | 494.0 | 3.1% |
Production costs were hit hard over the quarter, up by around € 39 million over the same period last year, due essentially to the rising cost of wood, because of the wood mix, and also to higher costs for external fibres, energy and chemicals.
Logistical costs also worsened substantially, rising by 12 million euros; logistical constraints are still being experienced and are affecting the economy as a whole.
The effect of steeply rising energy costs, in particular the higher cost of natural gas, was mitigated by the hedging policy, with a fixed rate being contracted for part of Navigator's purchases in 2022. It may be recalled that the Figueira da Foz biomass boiler started up in 2020, and this capital project has significantly reduced the Group's dependence on natural gas. At the same time, sale of its power output at market prices enabled Navigator to offset, in part, the higher prices paid for the component of energy purchases not yet fixed for the period.
Year on year, we recorded increased output across all businesses, enabling us to increase operational efficiency. The Company's focus on cutting specific consumption helped to mitigate the sharp rise in the costs of raw and subsidiary materials, which were felt this quarter, thereby contributing to results.
The increase in personnel costs was in line with Navigator's strong performance in the quarter, which will allow it to increase bonus payments to staff and step up the rejuvenation programme. Total fixed costs ended the quarter 22% higher than in the same quarter last
year, due essentially to personnel costs and the increase in running costs involved in scaling up operations in the post-pandemic context.
In this environment, the drive to improve efficiency and contain costs, combined with the upwards course of prices, enabled Navigator to offset the higher costs for the factors of production and to achieve an EBITDA for the quarter of € 122 million. The EBITDA / Sales margin was 25% (up 4.0 p.p. on Q1 2021). Attention is drawn to net positive impact of the exchange rate in the EBITDA of circa € 8 million, with an average EUR/USD rate in this first quarter of 1.12 vs. 1.20 of Q1 2021.
Financial results stood at € -4.7 million (vs. € -9.7 million), an improvement of € 5.0 million, explained in part by substantial losses recorded in 2021 (€ -4.7 million) and not recurring in 2022, in particular the cost of cancelling an interest rate swap associated with a bond issue, the foreign exchange loss of the subsidiary in Mozambique, interest income, and income relating to the antidumping proceedings in the USA. Without these non-recurrent impacts, financial results would have been brought down by € 0.3 million, essentially due to the lower cost of financing operations (down € 0.7 million), explained largely by the reduction in average debt in relation to the same period in the previous year. Conversely, and given the financial markets evolution, interest income obtained showed a negative trend (€ -0.2 million).
The Group achieved net income in the quarter of € 50.6 million. The effective rate of tax was affected by additional assessments of tax on income from prior periods which the Company intends to contest.
Free Cash Flow generation stood at € 77 million, reflecting the highly favourable operating environment, in particular as regards sales and prices.
The continued low level of investment in working capital was another factor that supported healthy cash generation. Some stocks increased significantly over the quarter, accompanied by a substantial upturn in client balances (above all, for paper and energy), in line with the robust growth in turnover. Alongside this, Navigator has implemented a suppliers' management policy geared to generating liquidity, whilst offering arrangements to support the liquidity of our partners. This carefully judged intervention has made an important contribution to holding the Group's cash generation steady at the high levels recorded in previous periods.
As a result of strong free cash flow generation in the period, Net Debt was reduced significantly (down € 77 million) in relation to year-end 2021. At 1.28X, the Net Debt/EBITDA ratio continued its downward course and stands at one of its lowest level for the past decade. This represents the accomplishment of one of the structural goals of the Group's policy and further consolidates its financial robustness.
In the absence of debt issues during the period, the Company reimbursed a total of € 100 million, with this being the main development in debt management during the first quarter.
First quarter Capex was close to € 15 million euros. This sum mostly includes projects aimed at maintaining production capacity, modernising plant and achieving efficiency gains. It also includes structural, environmental and decarbonisation projects, some of them launched in 2020, such as the new wood yard in Figueira da Foz, the new evaporation line in Aveiro and replacement of fuel oil boilers.
Navigator's commitment to innovation and to projects that promote resilience, the climate transition and the digital transition, places the Company in a privileged position to investments under the Recovery and Resilience Plan (RRP) scope. Navigator has submitted a number of applications in line with its own strategy; in the case of the Mobilising Agendas, these were successful in moving to the next stage, and a fuller submission was made as expected in early April 2022.
Navigator's current low levels of debt mean it can now consider strategies for growth, and the Company is paying keen attention to opportunities to develop its business through capital projects and/or partnerships, opportunities for debottlenecking in its traditional businesses, as well as for growth in the tissue, packaging and energy segments.
The rapid change in Europe's macroeconomic and geopolitical environment caused by the war in Ukraine has increased uncertainty and insecurity worldwide.
Sanctions against Russia and retaliatory measures, together with the operational and business risks, are making industrial and logistical operations more complex. There is a continued risk that variable costs will further rise or remain at historically high levels, as a consequence of volatility in the prices of raw materials, energy, wood and logistics.
Strong inflationary pressure allied with expectations of rapidly rising interest rates may result in a global economic slowdown, and consequently bring adverse effects across manufacturing industry, namely in our sector.
From another perspective, the COVID-19 pandemic continues to create a significant level of uncertainty.
In this context, although the industry is starting the second quarter with high levels of orders, there is a great deal of uncertainty concerning operations (logistical difficulties in dispatching products and securing raw material supplies). It may also be noted that China's zero-Covid policy has put heavier pressure on costs and availability of logistical resources, by limiting port operations, lengthening delivery times and retaining/immobilising equipment.
Rising costs remain one of Navigator's prime concerns. During the first quarter, Navigator still benefited from contracts where the prices had been set in 2021, meaning that inflationary pressure will continue to be felt on the Company's business. There is a continued focus on protecting paper and tissue margins, with the needed prudence to ensure costs are passed on through sales channels whilst keeping products affordable for customers.
Navigator remains focused on operational efficiency, managing its fixed and variable costs across its businesses, along with building up productivity and the sustainability of its operations.
Lisbon, 24 May 2022
| Unaudited Revenue 2.1 492,229,639 340,822,999 Other operating income 2.2 13,196,064 6,513,807 Changes in the fair value of biological assets 3.7 (5,484,454) (1,087,009) Costs of goods sold and materials consumed (215,360,445) (143,051,928) Variation in production 38,075,961 2,195,489 External services and supplies 2.3 (140,129,861) (89,451,388) Payroll costs (42,095,667) (35,829,616) 7.1 Other operating expenses 2.3 (18,856,698) (9,551,980) (166,210) Net provisions 9.1 Depreciation, amortisation and impairment losses in non-financial (32,189,183) (30,329,401) assets 3.6 Operating income 89,385,356 40,064,762 Financial income and gains 163,870 969,277 5.7 Other financial expenses and losses 5.7 (4,865,782) (10,697,441) Net financial results (4,701,912) (9,728,164) Gains/(losses) of associated companies and joint ventures - - Profit before income tax 84,683,444 30,336,598 Income tax 6.1 (34,084,876) (6,824,402) Net profit for the period 50,598,568 23,512,196 Attributable to Navigator's equity holders 50,602,596 23,514,983 Attributable to non-controlling interests 5.3 (4,028) (2,787) |
Amounts in Euro | Note | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|---|---|
| Earnings per share | ||||
| Basic earnings per share, Eur 5.2 0.071 0.033 |
||||
| Diluted earnings per share, Eur 5.2 0.071 0.033 |
| Amounts in Euro | Note | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|---|
| Unaudited | Unaudited | ||
| Net profit for the period | |||
| before non-controlling interests | 50,598,568 | 23,512,196 | |
| Items that may be reclassified to profit and loss | |||
| Hedging derivative financial instruments | |||
| Changes in fair value | 8.1 | (10,319,990) | (5,983,726) |
| Tax effect | 2,837,997 | 1,942,788 | |
| Currency translation differences | 2,409,831 | 1,611,807 | |
| Tax on conventional capital remuneration | - | ||
| Items that cannot be reclassified to profit and loss | |||
| Remeasurement of post-employment benefits | |||
| Remeasurement | 7.2 | (9,537,450) | 1,195,745 |
| Tax effect | 7.2 | - | - |
| Comprehensive income of associated companies and joint ventures | (2,329,646) | (209,536) | |
| Total other comprehensive income net of taxes | (16,939,258) | (1,442,921) | |
| Total comprehensive income | 33,659,310 | 22,069,275 | |
| Attributable to: | |||
| Navigator's equity holders | 33,658,394 | 22,072,062 | |
| Non-controlling interests | 916 | (2,787) | |
| 33,659,310 | 22,069,275 |
| Unaudited ASSETS Non-current assets Goodwill 3.1 377,339,466 377,339,466 Intangible assets 3.2 64,801,966 24,752,529 Property, plant and equipment 1,127,889,151 3.3 1,145,244,507 Right-of-use assets 3.5 50,052,747 51,192,959 Biological assets 3.7 141,839,607 147,324,061 Investment property 3.4 92,178 92,589 Non-current receivables 4.2 9,870,750 8,604,547 Deferred tax assets 6.2 33,069,806 28,037,408 1,804,955,672 1,782,588,066 Current assets 234,764,434 186,550,658 Inventories 4.1 Current receivables 4.2 403,309,360 317,882,760 Income tax 6.1 1,118,815 1,118,815 Cash and cash equivalents 5.6 216,288,014 239,171,252 855,480,623 744,723,485 Total Assets 2,660,436,295 2,527,311,551 EQUITY AND LIABILITIES Capital and Reserves Share capital 500,000,000 500,000,000 5.1 Treasury shares 5.1 - - Currency translation reserve (21,936,170) (24,346,001) Fair value reserve (13,086,069) (5,604,076) Legal reserves 100,000,000 100,000,000 Other reserves 121,836,100 121,836,100 Retained earnings 341,073,149 231,525,876 Net profit for the period 50,602,596 171,411,455 Prepaid dividends (49,996,170) - Equity attributable to Navigator's equity holders 1,078,489,606 1,044,827,184 Non-controlling interests 283,784 286,896 Total Equity 1,078,773,390 1,045,114,080 Non-current liabilities Interest-bearing liabilities 5.4 665,002,491 714,625,892 Lease liabilities 46,461,714 47,417,092 5.5 Pensions and other post-employment benefits 7.2 15,212,368 5,674,918 Deferred tax liabilities 6.2 95,771,978 92,528,775 Provisions 9.1 26,758,245 26,752,081 Non-current payables 4.3 37,422,300 37,014,427 886,629,095 924,013,185 Current liabilities Interest-bearing liabilities 119,318,157 5.4 69,175,300 Lease liabilities 5.5 5,730,781 5,823,833 Current payables 4.3 547,333,513 393,161,894 Income tax 6.1 72,794,216 39,880,402 695,033,810 558,184,286 Total Liabilities 1,581,662,905 1,482,197,471 Total Equity and Liabilities 2,660,436,295 2,527,311,551 |
Amounts in Euro | Note | 31-03-2022 | 31-12-2021 |
|---|---|---|---|---|
| Amounts in Euro | Note Share capital | Treasury shares |
Currency translation reserve |
Fair value reserves |
Legal reserves Other reserves | Retained earnings |
Net profit for the period |
Prepaid dividends |
Total | Non controlling interests |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity as at 1 January 2022 | 500,000,000 | - (24,346,001) (5,604,076) 100,000,000 | 121,836,100 | 231,525,876 | 171,411,455 | (49,996,170) 1,044,827,184 | 286,896 1,045,114,080 | |||||
| Net profit for the period | - | - | - | - | - | - | - | 50,602,596 | - | 50,602,596 | (4,028) | 50,598,568 |
| Other comprehensive income (net of taxes) | - | - | 2,409,831 | (7,481,993) | - | - | (11,868,012) | - | - | (16,940,174) | 916 | (16,939,258) |
| Total comprehensive income for the period | - | - | 2,409,831 (7,481,993) | - | - | (11,868,012) | 50,602,596 | - | 33,662,422 | (3,112) | 33,659,310 | |
| Application of 2021 net profit for the period: | ||||||||||||
| - Dividends paid | - | - | - | - | - | - | - | - | - | - | - | - |
| - Application of prior period's net profit | - | - | - | - | - | - | 121,415,285 | (171,411,455) | 49,996,170 | - | - | - |
| - Bonus to employees | - | - | - | - | - | - | - | - | - | - | - | - |
| Transfer of free reserves to retained earnings | - | - | - | - | - | - | - | - | - | - | - | - |
| Incorporation of reserves | - | - | - | - | - | - | - | - | - | - | - | - |
| Cancellation of treasury shares | - | - | - | - | - | - | - | - | - | - | - | - |
| Prepaid dividends | - | - | - | - | - | - | - | - | - | - | - | - |
| Total transactions with shareholders | - | - | - | - | - | - | 121,415,285 (171,411,455) | 49,996,170 | - | - | - | |
| Equity as at 31 March 2022 | 500,000,000 | - (21,936,170) (13,086,069) 100,000,000 | 121,836,100 | 341,073,149 | 50,602,596 | - 1,078,489,606 | 283,784 1,078,773,390 |
| Amounts in Euro | Note Share capital | Treasury shares |
Currency translation reserve |
Fair value reserves |
Legal reserves Other reserves | Retained earnings |
Net profit for the period |
Prepaid dividends |
Total | Non controlling interests |
Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity as at 1 January 2021 | 500,000,000 (20,189,264) (20,881,569) (6,641,368) 100,000,000 | 266,443,646 | 97,981,342 | 109,213,720 | - 1,025,926,506 | 275,182 1,026,201,688 | ||||||
| Net profit for the period | - | - | - | - | - | - | - | 23,514,983 | - | 23,514,983 | (2,787) | 23,512,196 |
| Other comprehensive income (net of taxes) | - | - | 1,611,807 | (4,040,937) | - | - | 986,209 | - | - | (1,442,921) | - | (1,442,921) |
| Total comprehensive income for the period | - | - | 1,611,807 (4,040,937) | - | - | 986,209 | 23,514,983 | - | 22,072,062 | (2,787) | 22,069,275 | |
| Application of 2020 net profit for the period: | ||||||||||||
| - Dividends paid | - | - | - | - | - | - | - | - | - | - | - | - |
| - Application of prior period's net profit | - | - | - | - | - | - | 109,213,720 | (109,213,720) | - | - | - | - |
| - Bonus to employees | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisition of treasury shares | - | - | - | - | - | - | - | - | - | - | - | - |
| Total transactions with shareholders | - | - | - | - | - | - | 109,213,720 (109,213,720) | - | - | - | - | |
| Equity as at 31 March 2021 | 500,000,000 (20,189,264) (19,269,762) (10,682,305) 100,000,000 | 266,443,646 | 208,181,271 | 23,514,983 | - 1,047,998,568 | 272,395 1,048,270,964 |
| Amounts in Euro Notes |
3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Unaudited | Unaudited | |
| OPERATING ACTIVITIES | ||
| Receipts from customers | 493,430,543 | 348,612,969 |
| Payments to suppliers | (372,250,129) | (252,050,223) |
| Payments to employees | (24,174,757) | (23,575,333) |
| Cash flow from operations | 97,005,657 | 72,987,413 |
| Income tax received/ (paid) 6.1 |
(4,413) | (474,048) |
| Other (payments)/ receipts relating to operating activities | (3,014,783) | 14,855,399 |
| Cash flows from operating activities (1) | 93,986,461 | 87,368,764 |
| INVESTING ACTIVITIES | ||
| Inflows: | ||
| Property, plant and equipment | 603,521 | 33,610 |
| Interest and similar income | 691,932 | 3,034,493 |
| 1,295,453 | 3,068,103 | |
| Outflows: | ||
| Property, plant and equipment | (12,172,741) | (20,384,028) |
| Intangible assets | (28,416) | (6,906,079) |
| (12,201,157) | (27,290,107) | |
| Cash flows from investing activities (2) | (10,905,704) | (24,222,004) |
| FINANCING ACTIVITIES | ||
| Inflows: | ||
| Interest-bearing liabilities | 233,742 | 42,778,814 |
| 233,742 | 42,778,814 | |
| Outflows: | ||
| Interest-bearing liabilities | (100,000,000) | (40,000,000) |
| Amortisation of lease agreements | (2,147,573) | (2,252,062) |
| Interest and similar expense | (3,899,696) | (5,031,218) |
| Other financing activities | (187,268) | - |
| (106,234,537) | (47,283,281) | |
| Cash flows from financing activities (3) | (106,000,795) | (4,504,466) |
| CHANGES IN CASH AND CASH EQUIVALENTS (1)+(2)+(3) | (22,920,038) | 58,642,294 |
| Effect of exchange rate differences | 36,800 | 280,285 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 5.6 |
239,171,252 | 302,399,831 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 5.6 |
216,288,014 | 361,322,410 |
Interest and similar expenses: essentially correspond to payments related to interest borne on debt securities and financial debt (Note 5.7);
| 1. INTRODUCTION | 19 |
|---|---|
| 1.1. THE GROUP 19 | |
| 1.2. MILITARY CONFLICT IN UKRAINE 20 | |
| 1.3. SUBSEQUENT EVENTS 21 | |
| 1.4. BASIS FOR PREPARATION 21 | |
| 1.5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS 22 | |
| 2. OPERATIONAL PERFORMANCE | 24 |
| 2.1. REVENUE AND SEGMENT REPORTING 24 | |
| 2.2. OTHER OPERATING INCOME 26 | |
| 2.3. OTHER OPERATING EXPENSES 27 | |
| 3. INVESTMENTS | 29 |
| 3.1. GOODWILL 29 | |
| 3.2. INTANGIBLE ASSETS 30 | |
| 3.3. PROPERTY, PLANT AND EQUIPMENT 31 | |
| 3.4. INVESTMENT PROPERTIES 32 | |
| 3.5. RIGHT-OF-USE ASSETS 32 | |
| 3.6. DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES 33 | |
| 3.7. BIOLOGICAL ASSETS 33 | |
| 4. WORKING CAPITAL | 35 |
| 4.1. INVENTORIES 35 | |
| 4.2. RECEIVABLES 35 | |
| 4.3. PAYABLES 37 | |
| 5.1. SHARE CAPITAL AND THEASURY SHARES 38 | |
|---|---|
| 5.2. EARNINGS PER SHARE 38 | |
| 5.3. NON-CONTROLLING INTERESTS 39 | |
| 5.4. INTEREST-BEARING LIABILITIES 39 | |
| 5.5. LEASE LIABILITIES 41 | |
| 5.6. CASH AND CASH EQUIVALENTS 41 | |
| 5.7. NET FINANCIAL RESULTS 42 | |
| 6. INCOME TAX | 43 |
| 6.1. INCOME TAX FOR THE PERIOD 43 | |
| 6.2. DEFERRED TAXES 45 | |
| 7. PAYROLL | 46 |
| 7.1. PAYROLL COSTS 46 | |
| 7.2. EMPLOYEE BENEFITS 46 | |
| 8. FINANCIAL INSTRUMENTS | 49 |
| 8.1. DERIVATIVE FINANCIAL INSTRUMENTS 49 | |
| 9. PROVISIONS, COMMITMENTS AND CONTINGENCIES | 51 |
| 9.1. PROVISIONS 51 | |
| 9.2. COMMITMENTS 51 | |
| 10. GROUP STRUCTURE | 52 |
| 10.1. COMPANIES INCLUDED IN THE CONSOLIDATION PERIMETER 52 | |
| 10.2. CHANGES IN THE CONSOLIDATION PERIMETER 53 | |
| 10.3. TRANSACTIONS WITH RELATED PARTIES 53 | |
| 11. EXPLANATION ADDED FOR TRANSLATION | 54 |
The Navigator Group (Group) is comprised by The Navigator Company, S.A. (until 2015 designated as Portucel, S.A.) and its subsidiaries.
The Navigator Group was created in the mid 1950's, when a group of technicians from "Companhia Portuguesa de Celulose de Cacia" made this company the first in the world to produce bleached eucalyptus sulphate pulp.
In 1976 Portucel EP was created as a result of the nationalisation of all of Portugal's cellulose industry. As such, Portucel – Empresa de Celulose e Papel de Portugal, E.P. resulted from the merger with CPC – Companhia de Celulose, S.A.R.L. (Cacia), Socel – Sociedade Industrial de Celulose, S.A.R.L. (Setúbal), Celtejo – Celulose do Tejo, S.A.R.L. (Vila Velha de Ródão), Celnorte – Celulose do Norte, S.A.R.L. (Viana do Castelo) and Celuloses do Guadiana, S.A.R.L. (Mourão), being converted into a mainly public anonymous society by Decree-Law No. 405/90, of 21 December.
Years after, as a result of the restructuring of Portucel – Empresa de Celulose e Papel de Portugal, S.A., which was renamed Portucel, SGPS, S.A., towards to its privatisation, Portucel S.A. was created, on 31 May 1993, through Decree-law No. 39/93, of 13 February, with the former assets of the two main companies, based in Aveiro and Setúbal.
In 1995, the Company was privatised, and became a publicly traded company.
Aiming to restructure the paper industry in Portugal, Portucel acquired Papéis Inapa, S.A. (Setúbal), in 2000, and Soporcel – Sociedade Portuguesa de Papel, S.A. (Figueira da Foz), in 2001. Those key strategic decisions resulted in the Portucel Soporcel Group (currently Navigator Group), which is currently the largest European and one of the world's largest producers of bleached eucalyptus pulp and uncoated wood-free paper (UWF), with a capacity of 1.6 and 1.6 million of tons, respectively, and it sells approximately 300 thousand tons of pulp (393 thousand tons in 2020), annually, integrating the remainder in the production of UWF paper and Tissue paper.
In June 2004, the Portuguese State sold 30% of Portucel's equity, which was acquired by Semapa Group. In September of the same year, Semapa launched a public acquisition offer tending to assure the Group's control, which was accomplished by guaranteeing a 67.1% stake of Portucel's equity.
In November 2006, the Portuguese State concluded the third and final stage of the sale of Portucel, S.A., and Párpublica, SGPS, S.A. and Párpublica, SGPS, S.A. (formerly Portucel, SGPS, S.A.) sold the remaining 25.72% it still held.
From 2009 to July 2015, more than 75% of the company's share capital was held directly and indirectly by Semapa – Sociedade de Investimento e Gestão SGPS, S.A.. (excluding treasury shares) having the percentage of voting rights been reduced to 70% following the conclusion of the offer for the acquisition, in the form of an exchange offer, of the ordinary shares of Semapa, SGPS, S.A., in July 2015.
In February 2015, the Group started its activity in the Tissue segment with the acquisition of AMS-BR Star Paper, S.A. (currently denominated Navigator Tissue Ródão, S.A.), a Company that holds and explores a tissue paper mill, located in Vila Velha de Ródão. A new industrial facility was built in Aveiro, in August 2018, being operated by Navigator Tissue Aveiro, S.A., which is currently the largest Portuguese producer and the third in the Iberian Peninsula, with a production and transformation capacity of 130 thousand tons and 120 thousand tons, respectively.
The Group's main business is the production and sale of writing and printing thin paper (UWF) and domestic consumption paper (Tissue), and it is present in the entire value-added chain, from research and development of forestry and agricultural production, to the purchase and sale of wood and the production and sale of bleached eucalyptus kraft pulp – BEKP – and electric and thermal energy, as well as its commercialisation.
The Navigator Company, S.A. (The Navigator Company or Company) is a publicly traded company, listed in Euronext Lisbon, with its share capital represented by nominal shares.
Company: The Navigator Company, S.A. Head Office: Mitrena – Apartado 55 | 2901-861 Setúbal | Portugal Legal Form: Public Limited Company Share Capital: Euro 500,000,000 TIN: 503 025 798
Navigator is included in the consolidation perimeter of Semapa – Sociedade de Investimento e Gestão, SGPS, S.A., the Parent Company, and Sodim - SGPS, S.A., the final controlling entity.
On 21 February 2022, the Russian Federation officially recognised two breakaway republics in eastern Ukraine and authorised the use of military forces in that territory. On 24 February, Russian troops invaded Ukraine and a widespread military conflict began in this country entailing high material and human losses, leading to massive population displacements.
The economic impact of this conflict , which has lasted for some months, is very relevant and includes: i) the suspension and/or disruption of business with entities based or originating in Russia and Ukraine; ii) increase in commodity prices, with emphasis on fossil fuels, metals and cereals; iii) increased global economic uncertainty, with more volatility in exchange rates and interest rates and an increase in the inflation rate to be expected; iv) possible increase in cyber-attacks, which may arise on public and private entities in the main sectors of the economy, especially in countries that have imposed sanctions on Russia or that support Russia.
Accordingly, the Navigator Group and its subsidiaries are monitoring the situation on an ongoing basis in the markets in which it operates, geographically and throughout the energy supply chain - from the supply of wood, energy, raw and subsidiary materials (including logistical issues), the technical and support services provided by foreign companies and outsourcing service providers, among others.
With regard to the international economic context, a deterioration of the current economic environment is expected, which is forecasted to be one of high uncertainty and rapid
evolution, so it is not possible to estimate with reasonable confidence the possible impacts, if any, on the Group's activity.
Nevertheless, the Group continues to evaluate potential impacts on its financial position, performance and cash flows, as well as future projections arising from the current geopolitical context, namely the impacts on the significant accounting estimates and judgements. No evidence of impairment resulted from this analysis.
Up to the date of issuing this report there were no subsequent events susceptible of being disclosed in these financial statements.
These consolidated financial statements were approved by the Board of Directors and authorised for issue on 16 May 2022.
The Condensed consolidated financial statements for the three-month period ended 31 March 2022 were prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting.
The accompanying consolidated financial statements have been prepared on the going concern basis from the accounting books and records of the companies included in the consolidation (Note 10), and under the historical cost convention, except for available-forsale financial assets, derivative financial instruments and biological assets, which are recorded at their fair value.
The following Notes were selected in order to contribute to the understanding of the most significant changes in the Group's consolidated financial position and its performance in relation to the last reporting date. In this context, these interim financial statements should be read together with the Navigator Group's consolidated financial statements for the period ended 31 December 2021.
The condensed consolidated financial statements have been prepared in Euro, except if mentioned otherwise.
The preparation of consolidated financial statements requires that the Group's Board of Directors make judgements and estimates that affect the amount of revenue, costs, assets, liabilities and disclosures at the date of the consolidated statement of financial position. To that effect, the Group's Board of Directors are based on:
On the date on which the operations are realised, the outcome could differ from those estimates.
More significant estimates and judgements are presented below:
| Estimates and judgements | Notes |
|---|---|
| Recoverability of Goodwill | 3.1 – Goodwill |
| Uncertainty over Income Tax Treatments |
6.1 - Income tax for the period 6.2 - Deferred taxes |
| Actuarial assumptions | 7.2 - Employee Benefits |
| Fair value of biological Assets | 3.8 – Biological assets |
| Recognition of provisions | 10.1 - Provisions |
| Recoverability, useful life and | |
| depreciation | 3.3 – Property, plant and |
| of property, plant and | equipment |
| equipment |
| MARKET PULP |
UWF PAPER | TISSUE PAPER | ENERGY | SUPPORT | CANCELLATIONS* | TOTAL | |
|---|---|---|---|---|---|---|---|
| REVENUE | |||||||
| Sales and services - external | 53,998,799 | 331,617,701 | 41,570,384 | 65,042,755 | 492,229,639 | ||
| - | - | ||||||
| Sales and services - intersegment Total revenue |
632,314 54,631,113 |
- 331,617,701 |
- 41,570,384 |
13,902,592 78,945,347 |
- - |
(14,534,906) (14,534,906) |
- 492,229,639 |
| PROFIT/ (LOSS) | |||||||
| Operating income | 11,897,933 | 73,684,450 | 3,508,204 | 9,003,204 | (8,708,435) | - | 89,385,356 |
| Net financial results | - | - | - | - | (4,701,912) | - | (4,701,912) |
| Income tax | - | - | - | - | (34,084,876) | - | (34,084,876) |
| Net profit for the period | 50,598,568 | ||||||
| Non-controlling interests Profit/ (loss) attributable to equity holders |
- - |
- - |
- - |
- - |
4,028 - |
- - |
4,028 50,602,596 |
| OTHER INFORMATION | |||||||
| Capital expenditure | 1,886,322 | 11,231,723 | 853,702 | 78,684 | 538,019 | - | 14,588,450 |
| Depreciation and impairment Provisions ((increases) / reversal) |
(3,346,887) - |
(21,072,596) - |
(2,510,264) - |
(4,145,565) - |
(1,113,871) - |
- - |
(32,189,183) - |
| OTHER INFORMATION | |||||||
| SEGMENT ASSETS | |||||||
| Goodwill | - | 376,756,383 | 583,083 | - | - | - | 377,339,466 |
| Property, plant and equipment | 131,121,645 | 618,932,776 | 148,720,434 | 224,567,907 | 4,546,390 | - | 1,127,889,151 |
| Right-of-use assets | 10,127,994 | 37,172,603 | - | - | 2,752,150 | - | 50,052,747 |
| Biological assets | 35,514,733 | 106,324,875 | - | - | - | - | 141,839,607 |
| Non-current receivables | 64,661 | 461,118 | 70,336 | - | 9,274,634 | - | 9,870,750 |
| Inventories | 23,130,779 | 186,028,494 | 23,523,055 | 629,662 | 1,452,443 | - | 234,764,434 |
| Other current receivables | 36,100,694 | 184,230,282 | 35,319,320 | 36,238,077 | 111,923,715 | - | 403,812,088 |
| Other assets | 3,577,595 | 81,308,269 | 4,333,447 | 38,500 | 226,112,969 | - | 315,370,780 |
| Total Assets | 239,638,101 1,591,214,799 | 212,549,676 | 261,474,146 | 356,062,301 | - 2,660,939,023 | ||
| Interest-bearing liabilities | 554,367 | 35,794,505 | 697,828,920 | 734,177,791 | |||
| Lease liabilities | - 10,627,532 |
38,695,857 | - | - - |
2,869,106 | - - |
52,192,495 |
| Other current payables | 88,077,458 | 357,310,783 | 22,010,169 | 2,135,897 | 77,799,205 | - | 547,333,512 |
| Other liabilities | 12,301,964 | 109,531,992 | 12,615,437 | 9,935,127 | 104,077,314 | - | 248,461,835 |
| Total Liabilities | 111,006,955 | 506,092,998 | 70,420,111 | 12,071,024 | 882,574,544 | - | 1,582,165,633 |
| * Cancellation of intersegment operations. Consolidation adjustments related to inter-segmental transactions are considered not significant. |
31-03-2022
In the first quarter of 2022, The Navigator Company recorded turnover in the amount of Euro 492 million, with paper sales accounting for approximately 68% of turnover (vs. 70%), pulp sales 11% (vs. 10%), tissue sales 8% (vs. 10%) and energy sales also 13% (vs. 9%).
The increase in sales volume was strongly driven by successive price increases for UWF, pulp and tissue, along with significant optimisation of the sales mix, which more than offset the sharp rise in production costs, namely wood, chemicals and energy, as well as logistical costs.
The focus on the packaging line of business continues to consolidate, with the Group achieving sales of Euro 21 million in the first quarter, roughly half its turnover for 2021. This commitment will continue throughout 2022, either by expanding the ranges in terms of weights, or by innovating and developing new sustainable packaging solutions, contributing to the decrease of the use of plastics.
This new business area, in its current stage of development, is included in the UWF Paper segment, insofar as, considering IFRS 8, the quantitative levels have not yet been exceeded, and due to the fact that this business line have a similar nature to UWF Paper and share a significant set of production and commercial processes.
The amount corresponding to the total energy sales was Euro 65,042,755 compared to Euro 31,290,117 in 2021. Following the electricity price volatility recorded in the market and the legislative changes published in December 2021, the renewable cogeneration plants of the
Group are since January this year selling the electricity produced at market prices instead of the regulated sales tariff, which justifies the increase in energy sales.
The sale, at market prices, allowed to partially offset the increase in energy purchase prices in the period.
Fixed capital expenditure in the first quarter of 2022 amounted to Euro 14,588,450 compared to Euro 20,147,429 a year earlier. This amount is mainly related to investments in equipment modernisation, maintaining production capacity and efficiency improvements. It also includes structural, environmental and decarbonisation projects, with particular emphasis on the new wood preparation line in Figueira da Foz, the new evaporation line in Aveiro and the replacement of the fuel oil boilers.
| 31-03-2021 | |||||||
|---|---|---|---|---|---|---|---|
| MARKET PULP |
UWF PAPER | TISSUE PAPER | ENERGY | SUPPORT | CANCELLATIONS* | TOTAL | |
| REVENUE | |||||||
| Sales and services - external | 35,562,464 | 238,453,602 | 35,516,816 | 31,290,117 | - | - | 340,822,999 |
| Sales and services - intersegment | 650,246 | - | - | 5,375,562 | - | (6,025,807) | - |
| Total revenue | 36,212,710 | 238,453,602 | 35,516,816 | 36,665,679 | - | (6,025,807) | 340,822,999 |
| PROFIT/ (LOSS) | |||||||
| Operating income | 6,545,129 | 37,847,257 | 5,715,421 | 2,456,648 | (12,499,693) | - | 40,064,762 |
| Net financial results | - | - | - | - | (9,728,164) | - | (9,728,164) |
| Income tax | - | - | - | - | (6,824,402) | - | (6,824,402) |
| Net profit for the period | 23,512,197 | ||||||
| Non-controlling interests Profit/ (loss) attributable to equity holders |
- | - | - | - | 2,787 | - | 2,787 23,514,983 |
| OTHER INFORMATION | - | - | - | - | - | - | |
| Capital expenditure | 2,289,812 | 11,774,692 | 1,393,185 | 4,107,339 | 582,402 | - | 20,147,429 |
| Depreciation and impairment | (2,389,478) | (17,639,543) | (2,648,952) | (4,902,240) | (2,749,188) | - | (30,329,401) |
| Provisions ((increases) / reversal) | (12,000) | (36,937) | - | (36,000) | (81,273) | - | (166,210) |
| OTHER INFORMATION | |||||||
| SEGMENT ASSETS | |||||||
| Goodwill | - | 376,756,383 | 583,083 | - | - | - | 377,339,466 |
| Property, plant and equipment | 138,388,360 | 678,525,700 | 155,553,141 | 199,417,831 | 2,818,393 | - | 1,174,703,425 |
| Right-of-use assets | 10,379,563 | 38,345,918 | - | - | 3,156,106 | - | 51,881,588 |
| Biological assets | 36,874,361 | 110,623,082 | - | - | - | - | 147,497,443 |
| Non-current receivables | 75,624 | 487,152 | 100,202 | - | 30,763,649 | - | 31,426,627 |
| Inventories | 12,869,418 | 147,872,422 | 19,394,562 | 456,267 | - | - | 180,592,669 |
| Other current receivables | 32,968,756 | 138,127,230 | 28,276,966 | 2,625,396 | 34,911,610 | - | 236,909,958 |
| Other assets | 1,106,070 | 55,043,824 | 2,020,664 | 83,663 | 373,069,171 | - | 431,323,392 |
| Total Assets | 232,662,152 1,545,781,711 | 205,928,618 | 202,583,157 | 444,718,929 | - 2,631,674,568 | ||
| SEGMENT LIABILITIES | |||||||
| Interest-bearing liabilities | 554,367 | 37,067,054 | 947,294,127 | 984,915,548 | |||
| Lease liabilities | - 10,705,037 |
39,381,850 | - | - - |
3,252,801 | - - |
53,339,688 |
| Other current payables | 54,588,269 | 255,177,618 | 26,161,090 | 7,224,494 | 41,419,398 | - | 384,570,869 |
| Other liabilities | 6,963,183 | 84,423,076 | 1,875,171 | 6,955,137 | 60,360,933 | - | 160,577,500 |
| Total Liabilities | 72,256,489 | 379,536,911 | 65,103,315 | 14,179,631 1,052,327,259 | - 1,583,403,605 | ||
| * Cancellation of intersegment operations. Consolidation adjustments related to inter-segmental transactions are considered not significant. |
| 31-03-2022 Amounts in Euro |
Pulp | UWF Paper | Tissue Paper | Energy | Total Amount |
Total % |
|---|---|---|---|---|---|---|
| Portugal | 1,230,694 | 19,179,328 | 16,874,819 | 65,042,755 | 102,327,596 | 21% |
| Rest of Europe | 39,229,253 | 190,926,004 | 23,441,386 | - | 253,596,643 | 52% |
| North America | 399,025 | 38,562,008 | 305,299 | - | 39,266,332 | 8% |
| Central and Latin America | - | 12,020,585 | - | - | 12,020,585 | 2% |
| Africa | 8,051,852 | 41,032,178 | 901,652 | - | 49,985,682 | 10% |
| Asia | 5,087,975 | 29,894,796 | 47,229 | - | 35,030,001 | 7% |
| Oceania | - | 2,801 | - | - | 2,801 | 0% |
| 53,998,799 | 331,617,701 | 41,570,384 | 65,042,755 | 492,229,639 | 100% | |
| Recognition pattern | ||||||
| At a certain moment in time | 53,998,799 | 331,617,701 | 41,570,384 | 65,042,755 | 492,229,639 | 100% |
| Over time | - | - | - | - | 0% |
| 31-03-2021 Amounts in Euro |
Pulp | UWF Paper | Tissue Paper | Energy | Total Amount |
Total % |
|---|---|---|---|---|---|---|
| Portugal | 419,050 | 10,997,085 | 14,366,624 | 31,290,117 | 57,072,876 | 17% |
| Rest of Europe | 22,338,319 | 134,366,808 | 20,257,410 | - | 176,962,537 | 52% |
| North America | 669,528 | 22,948,583 | 687,106 | - | 24,305,217 | 7% |
| Central and Latin America | - | 12,187,358 | - | - | 12,187,358 | 4% |
| Africa | 5,705,915 | 35,519,622 | 205,675 | - | 41,431,212 | 12% |
| Asia | 6,429,652 | 22,068,423 | - | - | 28,498,075 | 8% |
| Oceania | - | 365,724 | - | - | 365,724 | 0% |
| 35,562,464 | 238,453,602 | 35,516,816 | 31,290,117 | 340,822,999 | 100% | |
| Recognition pattern | ||||||
| At a certain moment in time | 35,562,464 | 238,453,602 | 35,516,816 | 31,290,117 | 340,822,999 | 100% |
| Over time | - | - | - | - | 0% |
Group's revenue distribution by geographic area
In 2022 and 2021, no single customer accounted for 10% or more of the Group's total revenues.
For the three-month periods ended 31 March 2022 and 2021, Other operating income is detailed as follows:
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Gains on disposal of non-current assets | 141,372 | 29,980 |
| Grants - CO2 emission allowances | 10,006,410 | 4,868,022 |
| Supplementary gains | 358,300 | 270,122 |
| Operating grants | 227,010 | 667,791 |
| Impairment reversal on receivables | 2,463 | 15,779 |
| Impairment reversal on inventories (Note 4.1.2) | 29,127 | - |
| Gains on inventories | 1,653,363 | 19,270 |
| Own work capitalised | 50,079 | 85,056 |
| Compensations | 163,078 | 47,356 |
| Other operating income | 564,862 | 510,431 |
| 13,196,064 | 6,513,807 |
Gains on CO2 allowances correspond to the recognition of the estimate of free allocation of allowances for 476,439 tons of CO2, at the average price of Euro 84.00 (442,732 tons of CO2, at the average price of Euro 33.69 as at 31 December 2021) (Note 3.2).
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Cost of goods sold and materials consumed | 215,360,445 | 143,051,928 |
| External services and supplies | ||
| Energy and fluids | 57,381,300 | 28,070,899 |
| Transportation of goods | 43,524,865 | 29,455,465 |
| Specialised work | 19,970,384 | 16,211,818 |
| Maintenance and repair | 8,128,312 | 5,509,458 |
| Rentals | 1,664,520 | 1,432,748 |
| Advertising and marketing | 2,704,812 | 2,811,774 |
| Insurance | 1,764,623 | 2,373,249 |
| Travel and accommodation | 691,441 | 1,000,741 |
| Fees | 923,963 | 585,722 |
| Subcontracts | (11,917) | 478,826 |
| Materials | 496,406 | 284,377 |
| Communications | 319,498 | 88,410 |
| Other | 2,571,656 | 1,147,902 |
| 140,129,861 | 89,451,388 | |
| Variation in production | (38,075,961) | (2,195,489) |
| Personnel costs (Note 7.1) | 42,095,667 | 35,829,616 |
| Other operating expenses | ||
| CO2 emission expenses (Note 3.2) | 11,173,111 | 5,296,989 |
| Impairment losses on receivables | 22,353 | 123,539 |
| Impairment losses on inventories (Note 4.1.2) | 5,295,103 | 593,563 |
| Other losses on inventories | 200,464 | 1,757,645 |
| Indirect taxes and fees | 721,258 | 491,208 |
| Losses on disposal of non-current assets | 171,183 | 1,223 |
| Water resources fee | 340 826 | 279 410 |
| Other operating expenses | 932,400 | 1,008,403 |
| 18,856,698 | 9,551,980 | |
| Net provisions (Note 9.1) | - | 166,210 |
| Total operating expenses | - 378,366,710 |
275,855,633 |
Given the macroeconomic context in which we live, there was a generalised increase in costs in the first quarter of 2022, with emphasis on raw materials, namely wood, energy and chemicals.
In Energy, there was an increase in electricity and natural gas prices, although the increase in costs was partially mitigated by the risk hedging policy with fixed-rate contracts for most of the 2022 purchases.
Logistics costs also showed a negative evolution, as a result of the current logistical constraints that are transversally affecting the economy, namely constraints in road means triggered by the strike in Spain at the end of the quarter and consequent migration of the volume of road transport to maritime transport in Europe. Notwithstanding, Navigator was able to operate at 100% without any disruption in supplies.
As at 31 March 2022 and 2021, external services and supplies costs incurred for investigation and research activities amounted to Euro 1,491,432 and Euro 825,483, respectively.
The CO2 emission expenses correspond to the emission of 136,627 tons of CO2 1 (31 March 2021: 155,428 tons).
The increase in the caption "Impairment losses on inventories" is due, essentially, to the reinforcement of the impairment for UWF paper waste.
1CO2 emissions from assets in factories, Scope 1 - EU ETS basis.
Goodwill is attributed to the Group's cash generating units (CGU's), as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| CGU of UWF paper production on Figueira da Foz site (goodwill resulting from the acquisition of Navigator Brands, S.A.) |
376,756,383 | 376,756,383 |
| CGU of Tissue paper production on Vila Velha de Ródão site (goodwill resulting from the acquisition of Navigator Tissue Ródão, S.A.) |
583,083 | 583,083 |
| 377,339,466 | 377,339,466 |
Following the acquisition of 100% of the former Soporcel - Sociedade Portuguesa de Papel, S.A. (now Navigator Brands, S.A.), for Euro 1,154,842,000, Goodwill amounting to Euro 428,132,254 was determined.
The Goodwill generated on the acquisition of Navigator Paper Figueira was deemed to be allocable to the integrated paper production in Figueira da Foz Industrial Complex cash generating unit.
On 6 February 2015 the procedures and agreements for the acquisition of AMS-BR Star Paper, S.A. (later merged into Navigator Tissue Ródão, S.A.) were concluded, with the authorization to conclude this transaction being formalized on 17 April 2015.
To the initial acquisition difference, of Euro 21,337,916, was deducted the AICEP's investment grant and the fair value of the acquired property, plant and equipment, with a goodwill amounting to Euro 583,083.
| Industrial property and |
CO2 emission allowances |
Intangible assets in progress |
Total | |
|---|---|---|---|---|
| Amounts in Euro Gross amount |
other rights | |||
| Balance as at 1 January 2021 | 16,664 | 11,902,620 | - | 11,919,284 |
| Assignments | - | 15,757,247 | - | 15,757,247 |
| Acquisitions | - | 7,721,939 | - | 7,721,939 |
| Balance as at 31 March 2021 | 16,664 | 35,381,806 | - | 35,398,470 |
| Assignments | - | (841,594) | 17,823 | (823,772) |
| Acquisitions | - | 14,984,579 | - | 14,984,579 |
| Adjustments, transfers and write-offs | 17,823 | (24,788,284) | (17,823) | (24,788,284) |
| Balance as at 31 December 2021 | 34,487 | 24,736,507 | - | 24,770,993 |
| Granting | - | 40,025,640 | 28,417 | 40,054,057 |
| Adjustments, transfers and write-offs | 28,417 | - | (28,417) | - |
| Balance as at 31 March 2022 | 62,904 | 64,762,147 | - | 64,825,050 |
| Accumulated amortisation and impairment losses | ||||
| Balance as at 1 January 2021 | (6,600) | - | - | (6,600) |
| Depreciation and amortisation for the period (Note 3.6) | (1,157) | - | - | (1,157) |
| Balance as at 31 March 2021 | (7,757) | - | - | (7,757) |
| Depreciation and amortisation for the period (Note 3.6) | (10,707) | - | - | (10,707) |
| Balance as at 31 December 2021 | (18,464) | - | - | (18,464) |
| Depreciation and amortisation for the period (Note 3.6) | (4,619) | - | - | (4,619) |
| Balance as at 31 March 2022 | (23,083) | - | - | (23,083) |
| Net book value as at 1 January 2021 | 10,064 | 11,902,620 | - | 11,912,684 |
| Net book value as at 31 March 2021 | 8,907 | 35,381,806 | - | 35,390,713 |
| Net book value as at 31 December 2021 | 16,023 | 24,736,507 | - | 24,752,529 |
| Net book value as at 31 March 2022 | 39,821 | 64,762,147 | - | 64,801,967 |
| CO2 allowances |
||||
| 31-03-2022 | 31-12-2021 | |||
| CO2 emission allowances (units) | 1,097,244 | 620,805 | ||
| Average unit value (Euro) | 59.02 | 39.85 |
| 2022 | 2021 | |||
|---|---|---|---|---|
| Amounts in Euro | Tons | Amount | Tons | Amount |
| Opening balance | 620,805 | 24,736,507 | 516,319 | 11,902,620 |
| CO2 allowances awarded free of charge (Note 2.2) | 476,439 | 40,025,640 | 442,732 | 14,915,653 |
| CO2 allowances acquired | - | - | 368,598 | 22,706,518 |
| CO2 allowances returned to the Licensing Coordinating Entity | - | - | (706,844) | (24,788,284) |
| Closing balance | 1,097,244 | 64,762,147 | 620,805 | 24,736,507 |
Market quotation (Euro) 76.48 80.65
As at 31 March 2022, the caption Assets under construction includes investments associated with ongoing development projects, in particular those related to the new wood preparation stack at Figueira da Foz (Euro 7,625,418), the new evaporation line in Aveiro (Euro 3,831,612), the replacement of the lime kiln cooler in Figueira da Foz (Euro 1,393,227), the replacement of the fuel oil boilers (Euro 1,163,159) and the new natural gas boiler in Setúbal (Euro 1,108,456). The remainder is related to several projects for improving and optimising the production process.
Movement in investment properties
| Buildings and | |||
|---|---|---|---|
| Land | other | Total | |
| Amounts in Euro | constructions | ||
| Gross amount | |||
| Balance as at 1 January 2021 | 424,744 | 82,307 | 507,051 |
| Acquisitions | - | - | - |
| Balance as at 31 March 2021 | 424,744 | 82,307 | 507,051 |
| Acquisitions | - | - | - |
| Balance as at 31 December 2021 | 424,744 | 82,307 | 507,051 |
| Acquisitions | - | - | - |
| Balance as at 31 March 2022 | 424,744 | 82,307 | 507,051 |
| Accumulated depreciation and impairment losses | |||
| Balance as at 1 January 2021 | (399,372) | (13,444) | (412,816) |
| Depreciation and amortisation for the period (Note 3.6) | - | - | - |
| Impairment losses (Note 3.6) | - | (412) | (412) |
| Balance as at 31 March 2021 | (399,372) | (13,855) | (413,227) |
| Depreciation and amortisation for the period (Note 3.6) | - | - | - |
| Impairment losses (Note 3.6) | - | (1,235) | (1,235) |
| Balance as at 31 December 2021 | (399,372) | (15,090) | (414,462) |
| Depreciation and amortisation for the period (Note 3.6) | - | - | - |
| Impairment losses (Note 3.6) | - | (412) | (412) |
| Balance as at 31 March 2022 | (399,372) | (15,501) | (414,873) |
| Net book value as at 1 January 2021 | 25,372 | 68,863 | 94,235 |
| Net book value as at 31 March 2021 | 25,372 | 68,452 | 93,824 |
| Net book value as at 31 December 2021 | 25,372 | 67,217 | 92,589 |
| Net book value as at 31 March 2022 | 25,372 | 66,806 | 92,178 |
These assets are not allocated to the Group's operating activity, nor do they have any future use determined.
| Software | Other lease | |||||
|---|---|---|---|---|---|---|
| Amounts in Euro | Forestry lands | Buildings | Vehicles | licenses | assets | Total |
| Gross amount | ||||||
| Balance as at 1 January 2021 | 46,847,021 | 4,651,039 | 6,907,139 | 360,588 | 5,347,975 | 64,113,762 |
| Acquisitions | 916,332 | - | 104,757 | 963,772 | - | 1,984,862 |
| Balance as at 31 March 2021 | 47,763,353 | 4,651,039 | 7,011,897 | 1,324,360 | 5,347,975 | 66,098,624 |
| Acquisitions | 2,593,383 | 4,016 | 1,559,141 | - | 1,307,301 | 5,463,841 |
| Adjustments, transfers and write-offs | (435,469) | - | (23,409) | - | - | (458,878) |
| Balance as at 31 December 2021 | 49,921,267 | 4,655,055 | 8,547,629 | 1,324,360 | 6,655,276 | 71,103,587 |
| Acquisitions | 310 | 646,959 | 647,269 | |||
| Adjustments, transfers and write-offs | (1,206) | (1,206) | ||||
| Balance as at 31 March 2022 | 49,920,371 | 4,655,055 | 9,194,588 | 1,324,360 | 6,655,276 | 71,749,650 |
| Accumulated depreciation and impairment losses Balance as at 1 January 2021 |
(6,180,742) | (1,369,284) | (3,684,538) | (164,312) | (887,884) | (12,286,761) |
| Depreciation | (778,139) | (128,514) | (465,874) | (283,580) | (274,167) | (1,930,274) |
| Balance as at 31 March 2021 | (6,958,882) | (1,497,798) | (4,150,412) | (447,892) | (1,162,051) | (14,217,036) |
| Depreciation | (2,287,954) | (387,250) | (1,332,210) | (217,619) | (1,561,698) | (5,786,731) |
| Adjustments, transfers and write-offs | 93,139 | - | - | - | - | 93,139 |
| Balance as at 31 December 2021 | (9,153,696) | (1,885,048) | (5,482,622) | (665,511) | (2,723,749) | (19,910,628) |
| Depreciation | (725,728) | (128,975) | (414,972) | (72,540) | (444,061) | (1,786,276) |
| Adjustments, transfers and write-offs | - | |||||
| Balance as at 31 March 2022 | (9,879,424) | (2,014,023) | (5,897,593) | (738,051) | (3,167,810) | (21,696,903) |
| Net book value as at 1 January 2020 | 40,666,279 | 3,281,755 | 3,222,601 | 196,276 | 4,460,091 | 51,827,002 |
| Net book value as at 31 March 2022 | 40,804,471 | 3,153,241 | 2,861,485 | 876,469 | 4,185,924 | 51,881,588 |
| Net book value as at 31 December 2021 | 40,767,570 | 2,770,007 | 3,065,007 | 658,849 | 3,931,527 | 51,192,959 |
| Net book value as at 31 March 2022 | 40,040,947 | 2,641,032 | 3,296,994 | 586,309 | 3,487,466 | 50,052,746 |
The item Land relates essentially to the land use rights of existing forest exploration, whose agreements usually have a duration of 24 years, and may be cancelled in advance if the 2nd harvest takes place before the 24th year of the agreement term.
The item Buildings refers to the lease agreement entered into between The Navigator Company, S.A. and Refundos - Sociedade Gestora de Fundos de Investimento Imobiliário, S.A. for the building located at Avenida Fontes Pereira de Melo, in Lisbon, for use as an office.
The item Other includes the forklift truck rental contract signed in 2020 and 2021.
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Depreciation of property, plant and equipment for the period (Note 3.3) | 31,281,079 | 29,397,161 |
| Charge-off of government grants | (883,203) | (999,603) |
| Depreciation of property, plant and equipment, net of grants charged-off | 30,397,876 | 28,397,558 |
| Amortisation of intangible assets for the period (Note 3.2) | 4,619 | 1,157 |
| Depreciation of right-of-use assets for the period (Note 3.5) | 1,786,276 | 1,930,274 |
| Impairment of investment properties (Note 3.4) | 412 | 412 |
| 32,189,183 | 30,329,401 |
| Amounts in Euro | 2022 | 2021 |
|---|---|---|
| Opening balance | 147,324,061 | 148,584,452 |
| Logging in the period | (6,076,734) | (6,141,105) |
| Growth | 5,275,745 | 4,943,930 |
| New planted areas and replanting (at cost) | 1,049,010 | 1,104,030 |
| Other changes in fair value | ||
| - changes in other species | (4,701,000) | - |
| - other changes in expectations | (1,031,474) | (993,864) |
| Total changes | (5,484,453) | (1,087,009) |
| Amount as at 31 March | 141,839,607 | 147,497,443 |
| Remaining quarters | (173,382) | |
| Amount as at 31 December | 147,324,061 |
As at 31 December 2022 and 31 December 2021, biological assets, by species, is detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Eucalyptus (Portugal) | 113,025,458 | 113,826,448 |
| Pine (Portugal) | 6,460,561 | 6,697,561 |
| Cork oak (Portugal) | 2,093,821 | 6,268,821 |
| Other species (Portugal) | 743,614 | 1,015,078 |
| Eucalyptus (Mozambique) | 19,516,153 | 19,516,153 |
| 141,839,607 | 147,324,061 |
These amounts correspond to Board of Directors' expectation of the volumes to be extracted from its woodlands in the future, as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Eucalyptus (Portugal) - Potential future of wood extractions k m3ssc | 10,207 | 10,207 |
| Pine (Portugal) - Potential future of wood extractions k ton | 311 | 311 |
| Pine (Portugal) - Potential future of pine extractions k ton | n/a | n/a |
| Cork oak (Portugal) - Potential future of cork extractions k @ | 461 | 461 |
| Eucalyptus (Mozambique) - Potential future of wood extractions k m3ssc | 2,758 | 2,758 |
Concerning Eucalyptus, the most relevant biological asset in the financial statements, in the three-month period ended 31 March 2022 and 2021, 170,431 m3ssc and 158,580 m3ssc of wood were extracted from the forests owned and operated by the Group, respectively.
As at 31 March 2022 and 31 December 2021 (i), there are no amounts of biological assets whose property is restricted and/or pledged as guarantee for liabilities, nor there are nonreversible commitments related to the acquisition of biological assets, and (ii) there are no government subsidies related to biological assets recognised in the Group's consolidated financial statements.
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Raw materials | 118,320,913 | 102,851,009 |
| Goods | 156,690 | 185,541 |
| Subtotal | 118,477,603 | 103,036,550 |
| Finished and intermediate products | 113,902,324 | 75,870,145 |
| Goods and work in progress | 1,994,361 | 2,440,632 |
| By-products and waste | 390,146 | 5,203,331 |
| Subtotal | 116,286,831 | 83,514,108 |
| Total | 234,764,434 | 186,550,658 |
As at 31 March 2022 and 31 December 2021, there are no inventories in which ownership is restricted and/or pledged as collateral for liabilities.
| Amounts in Euro | 2022 | 2021 |
|---|---|---|
| Balance as at 1 January | (3,934,904) | (2,157,570) |
| Increases | (5,295,103) | (593,563) |
| Reversals | 29,127 | - |
| Impact in profit and loss for the period | (5,265,977) | (593,563) |
| Charge-off | - | - |
| Balance as at 31 March | (9,200,881) | (2,751,133) |
| Remaining quarters | (1,183,771) | |
| Balance as at 31 December | (3,934,904) |
The impairment losses in inventories recorded in 2022 and 2021 relate to adjustments in the stock of UWF paper.
| 31-03-2022 | 31-12-2021 | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in Euro | Non-current | Current | Total | Non-current | Current | Total | |
| Trade receivables | - | 258,061,317 | 258,061,317 | - | 210,789,083 | 210,789,083 | |
| Other receivables - related companies (Note 10.3) | - | - | - | - | - | - | |
| State and other public entities | i) | - | 67,950,993 | 67,950,993 | - | 44,603,384 | 44,603,384 |
| Department of Commerce (EUA) | ii) | - | 281,653 | 281,653 | - | 281,653 | 281,653 |
| Enviva Pellets Greenwood, LLC (EUA) | iii) | - | 31,401,598 | 31,401,598 | 7,826,849 | 25,384,072 | 33,210,921 |
| Accrued income | iv) | - | 2,699,489 | 2,699,489 | - | 19,028,577 | 19,028,577 |
| Deferred expenses | v) | - | 15,091,875 | 15,091,875 | - | 8,463,089 | 8,463,089 |
| Derivative financial instruments (Note 8.1) | - | 8,917,317 | 8,917,317 | - | 1,630,982 | 1,630,982 | |
| Other | 9,870,750 | 18,905,119 | 28,775,870 | 777,698 | 7,701,920 | 8,479,618 | |
| 9,870,750 | 403,309,360 | 413,180,111 | 8,604,547 | 317,882,760 | 326,487,308 |
i) State is detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Value added tax - recoverable | 5,893,491 | 6,848,780 |
| Value added tax - refund requests | 62,055,032 | 37,752,135 |
| Amounts pending refund (tax proceedings decided in favour of the Group) | 2,470 | 2,470 |
| 67,950,993 | 44,603,384 |
As at 31 March 2022, the amount of refund requests comprised the following, by month and by company:
| Amounts in Euro | Feb/2022 | Mar/2022 | Total |
|---|---|---|---|
| The Navigator Company, S.A. | 24,917,819 | 32,714,450 | 57,632,269 |
| Navigator Tissue Ródão, S.A. | - | 1,000,000 | 1,000,000 |
| Navigator Paper Figueira, S.A. | - | 1,500,335 | 1,500,335 |
| Raiz Ventures, S.A. | - | 10,833 | 10,833 |
| Bosques do Atlântico, S.L. | - | 1,911,595 | 1,911,595 |
| 24,917,819 | 37,137,213 | 62,055,032 |
Up to issue of this report, the full amounts outstanding as at 31 March 2022 have been received.
As at 31 December 2021, the amount of reimbursement requests comprised the following, by month and by Company:
| Amounts in Euro | Nov/2021 | Dec/2021 | Total |
|---|---|---|---|
| The Navigator Company, S.A. | 20,331,270 | 15,631,403 | 35,962,673 |
| Sociedade de Vinhos da Herdade de Espirra, S.A. | - | 30,000 | 30,000 |
| Eucaliptusland | 50,000 | - | 50,000 |
| Bosques do Atlântico, S.L. | - | 1,709,462 | 1,709,462 |
| 20,381,270 | 17,370,865 | 37,752,135 |
All these amounts were received during the first quarter of 2022.
ii) As at 31 March 2022 and 31 December 2021, the balance corresponds to the amount receivable from the Department of Commerce (DoC) following the investigation initiated in 2015 of alleged dumping practices in exports of UWF paper to the United States by the subsidiary Navigator.
During 2021, the Department of Commerce confirmed the final rate to be applied for the fourth period of review from March 2019 to February 2020 at 2.21%, therefore the Group will soon receive approximately Euro 281,653 million for the difference between the deposits made and the final rate payable.
For the subsequent review periods (5 and 6), Navigator is estimated to pay to the DoC approximately Euro 5.4 million (Note 4.3). The decrease compared to December is due to the downward revision of the expected rate to be applied by the DoC.
iii) Reflects the present value of the amount still to be received from the sale of the pellet business. The nominal receivable, in USD, shall bear interest at the rate of 2.5% (Note 5.7).
iv) Accrued income and deferred expenses are detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Accrued income | ||
| Interest receivable | - | 718,888 |
| Energy sales | 2,053,753 | 17,470,569 |
| Insurance compensation | - | 272,689 |
| Other | 645,736 | 566,432 |
| 2,699,489 | 19,028,577 | |
| Deferred expenses | ||
| Insurance | 6,325,014 | - |
| Rentals | 8,518,782 | 8,312,244 |
| Other | 248,079 | 150,844 |
| 15,091,875 | 8,463,089 | |
| 17,791,364 | 27,491,666 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Trade payables | 307,588,703 | 253,983,711 |
| Trade payables - current account | 6,721,102 | 2,789,501 |
| State and other public entities | 56,634,921 | 27,246,422 |
| Related parties (Note 10.3) | 1,004,383 | 1,264,454 |
| Other creditors - CO2 emission allowances | 32,525,207 | 21,353,771 |
| Fiscal consolidation (Semapa) (Note 10.3) | 6,447,546 | 6,447,546 |
| Other creditors | 1,527,925 | 2,392,990 |
| Derivative financial instruments (Note 8.2) | 25,913,663 | 8,130,589 |
| Personnel costs accruals | 40,818,944 | 30,613,080 |
| Accrued expenses - interest payable | 9,176,460 | 6,711,797 |
| Wood suppliers bonus | 1,670,542 | 4,294,936 |
| Water resource fee | 1,433,789 | 1,096,148 |
| Rent liabilities | 16,117,535 | 15,634,141 |
| Other accrued expenses | 5,419,519 | 5,513,018 |
| Non-refundable grants | 5,545,932 | 5,689,791 |
| Other deferred income | 28,787,341 | - |
| Payables - current | 547,333,513 | 393,161,894 |
| Non-refundable grants | 32,038,242 | 28,460,138 |
| Department of Commerce (EUA) (Note 4.2) | 5,384,058 | 8,554,289 |
| Payables - non-current | 37,422,300 | 37,014,427 |
| 584,755,813 | 430,176,319 | |
| State - details | ||
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
| Personal income tax withhold (IRS) | 1,840,920 | 3,298,154 |
| Value added tax | 51,829,974 | 20,793,757 |
| Social Security contributions | 2,191,567 | 2,202,736 |
| Other | 772,459 | 951,775 |
As at 31 March 2022 and 31 December 2021, there were no overdue debts to the State.
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Investment grants | 3,239,223 | 3,234,584 |
| Grants - CO2 emission allowances | 28,787,341 | - |
| Other grants | 2,306,708 | 2,455,207 |
| Non-refundable grants - current | 34,333,272 | 5,689,791 |
| Investment grants | 32,038,242 | 28,460,138 |
| Non-refundable grants - non-current | 32,038,242 | 28,460,138 |
| 66,371,514 | 34,149,929 |
56,634,921 27,246,422
The Navigator Company is a public company with its shares quoted on the Euronext Lisbon.
As at 31 March 2022, The Navigator Company, S.A.'s share capital of Euro 500,000,000 was fully subscribed and is represented by 711,183,069 shares without nominal value (31 December 2021: 711,183,069 shares).
As at 31 March 2022 and 31 December 2021, the shareholders with qualified shareholdings in the Company's capital were as follows:
| 31-03-2022 | 31-12-2021 | ||||
|---|---|---|---|---|---|
| Designation | No. of shares | % | No. of shares | % | |
| Semapa, SGPS, S.A. | 497,617,299 | 69.97% | 497,617,299 | 69.97% | |
| Treasury shares | - | 0.00% | - | 0.00% | |
| Floating shares | 213,565,770 | 30.03% | 213,565,770 | 30.03% | |
| 711,183,069 | 100% | 711,183,069 | 100% |
| 31-03-2022 | 31-12-2021 | |||
|---|---|---|---|---|
| No. of shares | Book value (Euro) |
No. of shares | Book value (Euro) |
|
| Treasury shares held at the beginning of the period | - | - | 6,316,931 | 20,189,264 |
| Acquisition of treasury shares | - | - | - | - |
| Extinção no período | - | - | (6,316,931) | (20,189,264) |
| Treasury shares at the end of the period | - | - | - | - |
As at 31 December 2022 and 31 December 2021, Navigator did not hold any treasury shares.
As at 31 March 2022, the unit value of the share was Euro 3.38 (31 December 2021: Euro 3.35) and the market capitalisation of the Company was Euro 2,403,798,773 (31 December 2021: Euro 2,382,463,281) compared to an equity, net of non-controlling interests, of Euro 1,078,489,606 (31 December 2021: Euro 1,044,827,184).
| 31-03-2022 | 31-12-2021 | |
|---|---|---|
| Profit attributable to Navigator's equity holders (Euro) | 50,602,596 | 23,514,983 |
| Total number of shares issued | 711,183,069 | 717,500,000 |
| Average treasury shares held for the period | - | (6,316,931) |
| Weighted average number of shares | 711,183,069 | 711,183,069 |
| Basic earnings per share (Euro) | 0.071 | 0.033 |
| Diluted earnings per share (Euro) | 0.071 | 0.033 |
| % | Equity | Net profit | |||
|---|---|---|---|---|---|
| Amounts in Euro | held | 31-03-2022 | 31-12-2021 | 31-03-2022 | 31-03-2021 |
| Raiz - Instituto de Investigação da Floresta e Papel | 3.00% | 283,784 | 286,896 | (4,028) | (2,787) |
| Portucel Moçambique | 90.02% | i) - |
- | - | - |
| 283,784 | 286,896 | (4,028) | (2,787) |
Non-controlling interests are related to RAÍZ – Instituto de Investigação da Florestal e Papel, where the Group owns 97% of the share capital and voting rights. The remaining 3% are owned by external associates.
In 2014, the Group signed agreements with IFC – Internacional Finance Corporation for the entry of this institution into the share capital of the subsidiary Portucel Moçambique, S.A., thus ensuring the construction phase of the Group's forestry project in Mozambique. In 2015, this Company performed a capital increase from MZM 1,000 million to MZM 1,680.798 million subscribing MZM 332,798 million corresponding to 19.98% of the capital at that date.
In February 2019, there was a decrease in the subscribed, underwritten and paid-up capital of the shareholder The Navigator Company, S.A. to MZM 456,596,000, corresponding to 90.02% of the Company's share capital, and the IFC's holding was revised to MZM 50,620,000, corresponding to 9.98% of the Portucel Moçambique's share capital.
The surplus of the share capital reduction previously owned by The Navigator Company, S.A., of MZM 891,404,000 was employed to offset negative retained earnings. The differential between the MZM 332,798,000 previously subscribed by IFC and the MZM 50,620,000 which were paid in February 2019 were included in the share capital of Portucel Moçambique, as share premium.
As at the reporting date, there are no rights of protection of non-controlling interests that significantly restrict the entity's ability to access or use assets and settle liabilities of the Group.
| 31-03-2022 | 31-12-2021 | |||||
|---|---|---|---|---|---|---|
| Amounts in Euro | Non-current | Current | Total | Non-current | Current | Total |
| Bond loans | 432,500,000 | 12,500,000 | 445,000,000 | 442,500,000 | 2,500,000 | 445,000,000 |
| Commercial paper | 105,000,000 | 35,000,000 | 140,000,000 | 140,000,000 | 100,000,000 | 240,000,000 |
| Bank loans | 104,230,158 | 17,575,397 | 121,805,555 | 109,087,301 | 12,718,254 | 121,805,555 |
| Charges with bond issuances | (3,328,432) | - | (3,328,432) | (3,415,421) | - | (3,415,421) |
| Refundable grants | 34,656,363 | 4,099,903 | 38,756,266 | 34,509,610 | 4,099,903 | 38,609,513 |
| Deferrals and adjustments | (8,055,598) | - | (8,055,598) | (8,055,598) | - | (8,055,598) |
| Debt securities and bank debt | 665,002,491 | 69,175,300 | 734,177,791 | 714,625,892 | 119,318,157 | 833,944,049 |
| Average interest rate, considering | ||||||
| charges for annual fees and hedging | ||||||
| operations | 1.6% | 1.5% |
In the 1st quarter of 2022, the 1st instalment of a Euro 35 million commercial paper programme with a total value of Euro 175 million was repaid.
It was also decided not to renew the Euro 65 million issue, which matured in January 2022, under another commercial paper programme.
There was thus a decrease of Euro 100 million in the total debt issued during the quarter.
| 31-03-2022 | ||||||
|---|---|---|---|---|---|---|
| Amounts in Euro | Amount | Outstanding amount |
Maturity | Interest rate | Current | Non-current |
| Bond loans | ||||||
| Navigator 2015-2023 | 150,000,000 | 150,000,000 September 2023 Variable rate | - | 150,000,000 | ||
| Navigator 2019-2026 | 50,000,000 | 50,000,000 | January 2026 | Fixed rate | - | 50,000,000 |
| Navigator 2019-2025 | 50,000,000 | 50,000,000 | March 2025 | Variable rate | 10,000,000 | 40,000,000 |
| Navigator 2021-2026 | 20,000,000 | 20,000,000 | April 2026 | Variable rate | 2,500,000 | 17,500,000 |
| Navigator 2020-2026 | 75,000,000 | 75,000,000 December 2026 Variable rate | - | 75,000,000 | ||
| Navigator 2021-2026 | 100,000,000 | 100,000,000 | August 2026 | Fixed rate | - | 100,000,000 |
| Fees | - | (3,328,432) | - | (3,328,432) | ||
| European Investment Bank (EIB) | ||||||
| EIB Loan - Energy | 21,250,000 | 21,250,000 December 2024 Variable rate | 7,083,333 | 14,166,667 | ||
| EIB Loan - Cacia | 18,055,555 | 18,055,555 | May 2028 | Fixed rate | 2,777,778 | 15,277,777 |
| EIB Loan - Figueira | 40,000,000 | 40,000,000 | February 2029 | Fixed rate | 5,714,286 | 34,285,714 |
| EIB Loan - Biomass Boiler | 27,500,000 | 27,500,000 | March 2031 | Fixed rate | - | 27,500,000 |
| Commercial Paper Program | ||||||
| Commercial Paper Program 175M | 175,000,000 | 140,000,000 | February 2026 | Fixed rate | 35,000,000 | 105,000,000 |
| Commercial Paper Program 65M | 65,000,000 | - | January 2022 | Variable rate | - | - |
| Commercial Paper Program 75M | 75,000,000 | - | February 2026 | Variable rate | - | - |
| Commercial Paper Program 50M | 50,000,000 | - December 2025 Variable rate | - | - | ||
| Loans | ||||||
| Long-term investment | 15,000,000 | 15,000,000 | March 2026 | Variable rate | 2,000,000 | 13,000,000 |
| Refundable grants | ||||||
| AICEP | 38,756,266 | 38,756,266 November 2027 | Fixed rate | 4,099,903 | 34,656,363 | |
| Deferrals and adjustments | - | (8,055,598) | - | (8,055,598) | ||
| Bank credit lines | ||||||
| Short-term line 20M | 20,450,714 | - | - | - | ||
| 734,177,791 | 69,175,300 | 665,002,491 | ||||
| 31-12-2021 | ||||||
| Amounts in Euro | Amount | Outstanding amount |
Maturity | Interest rate | Current | Non-current |
| Bond loans | ||||||
| 150,000,000 | - | 150,000,000 | ||||
| Navigator 2015-2023 | 150,000,000 September 2023 Variable rate | Fixed rate | - | |||
| Navigator 2019-2026 Navigator 2019-2025 |
50,000,000 50,000,000 |
50,000,000 50,000,000 |
January 2026 March 2025 |
Variable rate | - | 50,000,000 50,000,000 |
| Navigator 2021-2026 | 20,000,000 | 20,000,000 | April 2026 | Variable rate | 2,500,000 | 17,500,000 |
| Navigator 2020-2026 | 75,000,000 | 75,000,000 December 2026 Variable rate | - | 75,000,000 | ||
| Navigator 2021-2026 | 100,000,000 | 100,000,000 | August 2026 | Fixed rate | - | 100,000,000 |
| Fees | - | (3,415,421) | - | (3,415,421) | ||
| European Investment Bank (EIB) | ||||||
| EIB Loan - Energy | 21,250,000 | 21,250,000 December 2024 Variable rate | 7,083,333 | 14,166,667 | ||
| EIB Loan - Cacia | 18,055,555 | 18,055,555 | May 2028 | Fixed rate | 2,777,778 | 15,277,777 |
| EIB Loan - Figueira | 40,000,000 | 40,000,000 | February 2029 | Fixed rate | 2,857,143 | 37,142,857 |
| EIB Loan - Biomass Boiler | 27,500,000 | 27,500,000 | March 2031 | Fixed rate | - | 27,500,000 |
| Commercial Paper Program | ||||||
| Commercial Paper Program 175M | 175,000,000 | 175,000,000 | February 2026 | Fixed rate | 35,000,000 | 140,000,000 |
| Commercial Paper Program 65M | 65,000,000 | 65,000,000 | January 2022 | Variable rate | 65,000,000 | - |
| Commercial Paper Program 75M | 75,000,000 | - | February 2026 | Variable rate | - | - |
| Commercial Paper Program 50M | 50,000,000 | - December 2025 Variable rate | - | - | ||
| Loans | ||||||
| March 2026 | Variable rate | |||||
| Long-term investment Refundable grants |
15,000,000 | 15,000,000 | 15,000,000 | |||
| AICEP | 38,609,513 | 38,609,513 November 2027 | Fixed rate | 4,099,903 | 34,509,610 | |
| - | - | |||||
| Deferrals and adjustments Bank credit lines |
(8,055,598) | (8,055,598) | ||||
| Short-term line 20M | 20,450,714 | - | - | - |
As at 31 March 2022, the average cost of debt, considering the interest rate, annual fees and hedging operations, was 1.6% (31 December 2021: 1.5%).
833,944,049 119,318,157 714,625,892
The refund terms for the interest-bearing liabilities recorded as non-current are detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Non-current | ||
| 1 to 2 years | 232,294,836 | 234,259,122 |
| 2 to 3 years | 86,223,407 | 86,223,407 |
| 3 to 4 years | 103,640,074 | 106,640,074 |
| 4 to 5 years | 217,140,074 | 261,140,074 |
| More than 5 years | 37,088,130 | 37,834,234 |
| 676,386,522 | 726,096,911 | |
| Fees | (11,384,030) | (11,471,019) |
| 665,002,491 | 714,625,892 |
As at 31 March 2022, the Group had contracted Commercial Paper Programs, contracted and undisbursed long-term financing, as well as available but not used credit facilities of Euro 210,450,714 (31 December 2021: Euro 145,450,714).
As at 31 March 2022 and 31 December 2021, the Group's interest-bearing net debt was as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Interest-bearing liabilities (Note 5.4) | 734,177,791 | 833,944,049 |
| Cash and cash equivalents (Note 5.6) | (216,288,014) | (216,288,014) |
| Interest-bearing net debt | 517,889,777 | 617,656,035 |
| Lease liabilities | 52,192,495 | 53,240,925 |
| Interest-bearing net debt with lease liabilities | 570,082,272 | 670,896,960 |
| 31-03-2022 | 31-12-2021 | |||||
|---|---|---|---|---|---|---|
| Amounts in Euro | Maturing rents | Interest on liabilities |
Present value of liabilities |
Maturing rents | Interest on liabilities |
Present value of liabilities |
| Less than 1 year | 3,879,561 | 1,851,219 | 5,730,781 | 3,971,610 | 1,852,223 | 5,823,833 |
| 1 to 2 years | 3,366,198 | 1,707,677 | 5,073,875 | 3,368,272 | 1,708,916 | 5,077,188 |
| 2 to 3 years | 2,967,146 | 1,571,901 | 4,539,047 | 2,867,678 | 1,575,482 | 4,443,160 |
| 3 to 4 years | 1,907,853 | 1,448,213 | 3,356,066 | 1,999,426 | 1,450,866 | 3,450,292 |
| 4 to 5 years | 1,843,910 | 1,332,861 | 3,176,771 | 1,748,655 | 1,337,957 | 3,086,612 |
| More than 5 years | 21,220,194 | 9,095,761 | 30,315,955 | 22,150,369 | 9,209,471 | 31,359,840 |
| Present value of liabilities | 35,184,862 | 17,007,632 | 52,192,495 | 36,106,011 | 17,134,915 | 53,240,925 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Cash | 39,288 | 35,334 |
| Short-term bank deposits | 197,925,697 | 220,585,472 |
| Other short-term investments | 18,323,029 | 18,550,446 |
| 216,288,014 | 239,171,252 |
As at 31 March 2022, the caption Other short-term investments includes Euro 18,323,029 (31 December 2021: Euro 18,550,446) of amounts invested by Navigator in a portfolio of short-term, highly liquid financial assets and issuers with adequate ratings.
As at 31 March 2022 and 31 December 2021, there are no significant balances of cash and cash equivalents that are subject to restrictions on use by the Group.
| 3 months | 3 months | |
|---|---|---|
| Amounts in Euro | 31-03-2022 | 31-03-2021 |
| Interest paid on debt securities and bank debt | (2,298,790) | (3,153,390) |
| Commissions on loans and expenses with the opening of credit facilities | (784,577) | (900,391) |
| Interest paid using the effective interest method | (3,083,367) | (4,053,781) |
| Interest paid on lease liabilities | (453,078) | (525,992) |
| Financial expenses related to the Group's capital structure Desconto financeiro de provisões (Nota 9.1) |
(3,536,445)- | (4,579,773)- |
| Favourable / (Unfavourable) exchange rate differences | - | - |
| Losses on financial instruments - foreign exchange hedging (Note 8.1) | - | (302,483) |
| Gains / (Losses) on financial instruments - interest-rate hedging (Note 8.1) | (710,245) | (1,973,560) |
| Gains / (Losses) on financial instruments - hedging (Note 8.1) | (174,549) | (3,609,072) |
| Other expenses and financial losses | (444,544) | (232,552) |
| Financial expenses and losses | (4,865,782) | (10,697,441) |
| Interest earned on financial assets at amortised cost | - | 412,385 |
| Favourable exchange rate differences | 163,870 | 282,681 |
| Gains on compensatory interest | - | 274,210 |
| Financial income and gains | 163,870 | 969,277 |
| Net financial results | (4,701,912) | (9,728,164) |
Net financial results stood at negative Euro 4.7 (vs. Euro 9.7 million), an increase of Euro 5.0 million, partly explained by significant results in 2021 (Euro - 4.7 million) that will not occur in 2022, namely the cost of cancelling an interest rate swap associated with a bond loan, the exchange rate result of the financing of the subsidiary in Mozambique, compensatory interest received, and income associated with the antidumping process in the USA.
Without these non-recurrent impacts, financial results would have increased by Euro 0.3 million, essentially as a result of the positive evolution of the costs of financing operations due mainly to the decrease in average debt compared to the same period in the previous year. Conversely, and in view of the evolution of the financial markets, interest received showed a negative evolution.
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Current tax | 26,095,422 | 3,767,099 |
| Change in uncertain tax positions in the period | 6,936,059 | 134,019 |
| Deferred tax (Note 6.2) | 1,053,395 | 2,923,284 |
| 34,084,876 | 6,824,402 |
As at 31 March 2022, current tax includes Euro 23,452,098 (31 March 2021: Euro 2,611,563) regarding the liability created under the aggregated income tax regime of The Navigator Company, S.A..
As at 31 March 2021 and 2020, the item "Change of uncertain tax positions in the period" reflects the excess / insufficiency of tax estimates, the favourable outcome of some cases related to matters with high uncertainty, as well as requests for binding information, claims to the Tax Administration and jurisprudence of the courts.
There have not been, nor are any expected changes arising from variations in the rate used to determine the expected tax amount.
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Profit before income tax | 84,683,444 | 30,336,598 |
| Expected tax at nominal rate (21%) | 17,783,523 | 6,370,686 |
| Municipal surcharge (2021: 1.17% ; 2020: 1.56%) State surcharge (2021: 3.04% ; 2020: 4.23%) Income tax resulting from the applicable tax rate |
1,830,823 5,783,879 25,398,225 |
710,213 1,284,778 8,365,677 |
| Nominal tax rate for the period | 29.99% | 27.58% |
| Differences (a) | 8,589,785 | 958,900 |
| Excess of income tax estimate | - | (2,500,176) |
| Autonomous taxation | 96,866 | - |
| 34,084,876 | 6,824,402 | |
| Effective tax rate | 40.25% | 22.50% |
| (a) This amount concerns mainly: | 3 months | 3 months |
|---|---|---|
| 31-03-2022 | 31-03-2021 | |
| Capital gains/ (losses) for tax purposes | 29,533 | 25,275 |
| Capital gains/ (losses) for accounting purposes | (82,774) | (22,642) |
| Taxable provisions and impairment | 30,539,024 | 992,054 |
| Tax benefits | (133,760) | (117,204) |
| Post-employment benefits | - | - |
| Other | 883,560 | 2,609,426 |
| 31,235,583 | 3,486,910 | |
| Tax effect (27.5%) | 8,589,785 | 958,900 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Assets | ||
| Amounts pending refund (tax proceedings decided in favour of the Group) | 1,118,815 | 1,118,815 |
| 1,118,815 | 1,118,815 | |
| Liabilities | ||
| Corporate Income Tax - IRC | 45,890,977 | 19,913,222 |
| Additional tax liabilities (IRC) | 26,903,238 | 19,967,180 |
| 72,794,216 | 39,880,402 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Income tax for the period | 26,095,422 | 37,586,136 |
| Payments on account, special and additional payments on account | - | (19,000,792) |
| Withholding tax recoverable | (4,413) | (22,809) |
| Corporate income tax payable / (refundable) from previous periods | 20,200,713 | - |
| Other payables / (receivables) | (400,745) | 1,350,687 |
| 45,890,977 | 19,913,222 |
The amounts of corporate income tax paid in the period are detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-03-2021 |
|---|---|---|
| Payment / (Refund) of corporate income tax for the previous period | - | - |
| Payments on account, special and additional payments on account | - | - |
| Withholding tax | 4,413 | (22,809) |
| Refunds of tax proceedings decided in favour of the group | - | - |
| Payments of additional tax liabilities | - | - |
| Other income tax payments / (refunds) | 496,857 | |
| Income tax paid / (received) | 4,413 | 474,048 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| RFAI 2010 to 2012 - compensatory interest | 1,076,611 | 1,076,611 |
| Other | 42,204 | 42,204 |
| 1,118,815 | 1,118,815 |
The movements in the period are detailed as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Balance at the beginning of the period | 1,118,815 | 3,482,762 |
| Increases | - | 42,204 |
| Payments / (receipts) | - | - |
| Reversals | - | (2,406,151) |
| 1,118,815 | 1,118,815 |
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Balance at the beginning of the period | 19,967,180 | 22,898,753 |
| Increases | 6,936,059 | 8,094,261 |
| Payments / (receipts) | - | - |
| Reversals | - | (11,025,834) |
| Changes in the period | 6,936,059 | (2,931,573) |
| 26,903,239 | 19,967,180 |
As at 31 March 2022 and 31 December 2021, the additional tax assessments that are already paid and contested, not recognised in assets, refer to the Navigator Group and are summarised as follows:
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| 2005 Aggregated corporate income tax (Note 10.3) | 10,394,386 | 10,394,386 |
| 2006 Aggregated corporate income tax (Note 10.3) | 8,150,146 | 8,150,146 |
| 2015 Corporate income tax - Navigator Tissue Ródão, S.A. | 7,586,361 | 7,586,361 |
| 2016 State surcharge | 3,761,397 | 3,761,397 |
| 2017 State surcharge | 8,462,724 | 8,462,724 |
| 2018 State surcharge | 12,223,705 | 12,223,705 |
| 2016 and 2017 CDTJI corporate income tax | 1,522,660 | 1,522,660 |
| 52,101,379 | 52,101,379 |
| As at 1 January Income Statement |
As at 31 March | ||||
|---|---|---|---|---|---|
| Amounts in Euro | 2022 | Increases | Decreases | Equity | 2022 |
| Temporary differences originating deferred tax assets | |||||
| Taxed provisions | 4,544,163 | - | (2,550) | - | 4,541,613 |
| Adjustment of property, plant and equipment | 62,470,397 | 972,823 | (6,533,267) | - | 56,909,953 |
| Financial instruments | 7,448,830 | - | - | 10,320,021 | 17,768,851 |
| Deferred accounting gains on intra-group transactions | 21,090,054 | 14,450,033 | (907,431) | 34,632,655 | |
| Investment grants | 203,588 | - | - | - | 203,588 |
| Conventional capital remuneration | 4,200,000 | - | - | - | 4,200,000 |
| 99,957,031 | 15,422,856 | (7,443,248) 10,320,021 | 118,256,660 | ||
| Temporary differences originating deferred tax liabilities | |||||
| Pensions and other post-employment benefits | (388,758) | - | - | - | (388,758) |
| Valuation of biological assets | (25,294,177) | 5 893 541 | - | - | (19,400,637) |
| Adjustment of property, plant and equipment | (306,642,712) | 940,108 | (18,762,652) | (324,465,256) | |
| Investment grants | (4,142,627) | 118 867 | - | 16,669 | (4,007,090) |
| (336,468,274) | 6,952,516 | (18,762,652) | 16,669 | (348,261,741) | |
| Deferred tax assets | 27,488,184 | 4,241,285 | (2,046,893) | 2,838,006 | 32,520,582 |
| Government grants | 549,224 | - | - | - | 549,224 |
| Deferred tax assets | 28,037,408 | 4,241,285 | (2,046,893) | 2,838,006 | 33,069,806 |
| Deferred tax liabilities | (92,528,775) | 1,911,942 | (5,159,729) | 4,584 | (95,771,978) |
| As at 1 January | Income Statement | As at 31 December | |||
| Amounts in Euro | 2021 | Increases | Decreases | Equity | 2021 |
| Temporary differences originating deferred tax assets | |||||
| Taxed provisions | 6,974,025 | - | (2,429,862) | - | 4,544,163 |
| Adjustment of property, plant and equipment | 71,179,011 | - | (8,708,614) | - | 62,470,397 |
| Financial instruments | 8,879,577 | - | - | (1,430,747) | 7,448,830 |
| Deferred accounting gains on intra-group transactions | 15,145,588 | 5,944,465 | - | - | 21,090,054 |
| Investment grants | 203,588 | - | - | - | 203,588 |
| Conventional capital remuneration | 7,000,000 | - | (3,360,000) | 560,000 | 4,200,000 |
| 109,381,790 | 5,944,465 | (14,498,477) | (870,747) | 99,957,031 | |
| Temporary differences originating deferred tax liabilities | |||||
| Pensions and other post-employment benefits | (224,593) | 649 357 | - | (813,523) | (388,758) |
| Deferred accounting losses on intra-group transactions | (9,929,599) | - | - | 9,929,599 | - |
| Valuation of biological assets | (23,121,032) | - | (2,173,145) | - | (25,294,177) |
| Adjustment of property, plant and equipment | (272,907,547) | - | (33,735,165) | - | (306,642,712) |
| Investment grants | (6,406,374) | 489,447 | - | 1,774,300 | (4,142,627) |
| (312,589,145) | 1,138,805 | (35,908,310) 10,890,376 | (336,468,275) | ||
| Deferred tax assets | 30,079,993 | 1,634,728 | (3,987,081) | (239,456) | 27,488,184 |
| Government grants (Note 3.5) | 549,224 | - | - | - | 549,224 |
| Deferred tax assets | 30,629,217 | 1,634,728 | (3,987,081) | (239,456) | 28,037,408 |
| Deferred tax liabilities | (85,962,014) | 313,171 | (9,874,785) | 2,994,853 | (92,528,775) |
In the measurement of the deferred taxes as at 31 December 2021 and 2020, the rate of 27.50% was used.
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Remuneration of Corporate Bodies - fixed | 833,115 | 826,099 |
| Remuneration of Corporate Bodies - variable | 1,200,000 | 521,585 |
| Other remunerations | 29,578,916 | 26,011,685 |
| Social Security contributions | 5,705,136 | 5,704,747 |
| Post-employment benefits (Note 7.2) | 295,921 | 321,075 |
| Other payroll costs | 4,482,579 | 2,444,425 |
| Payroll costs | 42,095,667 | 35,829,616 |
The increase in payroll costs accompanied Navigator's good performance in the quarter, which will enable it to step up the distribution of bonuses to employees and reinforce the rejuvenation programme.
| 31-03-2022 | 31-12-2021 | Var. 22/21 | |
|---|---|---|---|
| Market pulp | 249 | 254 | (5) |
| UWF | 1,757 | 1,778 | (21) |
| Tissue | 385 | 383 | 2 |
| Support | 738 | 735 | 3 |
| 3,129 | 3,150 | (21) |
Other Payroll costs for the three-month periods ended 31 March 2022 and 2021 are detailed as follows:
| Amounts in Euro | 3 months 31-03-2022 |
3 months 31-03-2021 |
|---|---|---|
| Training | 77,090 | 51,474 |
| Social action | 378,706 | 694,373 |
| Insurance | 1,090,078 | 1,125,614 |
| Compensations | 2,918,291 | 409,786 |
| Other | 18,414 | 163,178 |
| 4,482,579 | 2,444,425 |
Some Group companies grant their employees post-retirement benefits, either in the form of defined benefit plans or in the form of defined contribution plans.
The plans are funded through a closed Pension Fund, managed by an external entity, which subcontracts the management of its assets to external asset management entities.
A. Pension Plan – Defined benefit
The Group has responsibilities with post-employment benefit plans for a reduced group of Employees who have chosen to maintain the defined benefit plan or who have chosen to maintain a safeguard clause, the latter following the conversion of their plan into a Defined
Contribution Plan. In effect, the safeguard clause gives the Employee the option, at the time of retirement, to pay a pension in accordance with the provisions laid down on the Defined Benefit Plan. For those who choose to activate the Safeguard Clause, the accumulated balance in the Defined Contribution Plan (Conta 1) will be used to finance the liability of the Defined Benefit Plan.
As at 31 December 2021, three Defined Contribution plans were in force covering 2,936 Employees (2020: 2,816 employees) (Note 7.2.3).
Net liabilities reflected in the consolidated statement of financial position and the number of beneficiaries of the defined benefit plans in force in the Group are detailed as follows:
| 31-03-2022 | 31-12-2021 | |||
|---|---|---|---|---|
| No. of Beneficiaries |
Amount | No. of Beneficiaries |
Amount | |
| Past service liabilities | ||||
| Active employees, including individual accounts | 408 | 71,291,405 | 408 | 71,291,405 |
| Alumni | 126 | 26,059,671 | 126 | 26,059,671 |
| Retired employees | 567 | 93,651,512 | 567 | 93,651,512 |
| Market value of pension funds | (175,790,221) | (185,327,671) | ||
| Total net liabilities | 1,101 | 15,212,368 | 1,101 | 5,674,918 |
| Amounts in Euro | 2022 | 2021 |
|---|---|---|
| Opening balance | 185,327,671 | 178,691,062 |
| Charge for the period | - | 1,000,000 |
| Remeasurement | (9,537,450) | 1,195,745 |
| Balance as at 31 March | 175,790,221 | 180,886,807 |
| Remaining quarters | 4,440,864 | |
| Balance as at 31 December | 185,327,671 |
The assets of the pension fund related to the defined benefit plan are under the management of AGEAS – Pensões, Schroders, BlackRock and Credit Suisse, as detailed below:
| 1,541,082 | 3,938,660 |
|---|---|
| 70,993,049 | |
| 72,705,468 | |
| 37,690,494 | |
| 185,327,671 | |
| 69,396,705 69,502,228 35,350,205 175,790,221 |
Funds allocated to defined benefit plans - composition of assets
| Amounts in Euro | 31-03-2022 | % | 31-12-2021 | % |
|---|---|---|---|---|
| Securities listed in the market | ||||
| Bonds | 104,470,215 | 59.4% | 112,303,157 | 60.6% |
| Shares | 45,099,442 | 25.7% | 50,274,545 | 27.1% |
| Public debt | 14,530,629 | 8.3% | 14,558,914 | 7.9% |
| Liquidity | 10,148,854 | 5.8% | 4,252,394 | 2.3% |
| Real estate | - | 0.0% | - | 0.0% |
| Other short-term investments | 1,541,082 | 0.9% | 3,938,660 | 2.1% |
| 175,790,221 | 100% | 185,327,671 | 100% |
The assets of the pension fund do not include any assets of the Group.
As at 31 March 2022 and 31 December 2021, two defined contribution plans were in force for most of the employees.
The assets of the pension fund that finance the defined contribution plans are under the management of the AGEAS Pensões, as detailed below:
| No. of | Profitability | No. of | Profitability | |||
|---|---|---|---|---|---|---|
| Amounts in Euro | Beneficiaries | % | 2022 | Beneficiaries | % | 2021 |
| Defined contribution (AGEAS): | ||||||
| Defensive sub-fund | 117 | (2.97%) | 7,796,441 | 110 | 3.52% | 7,995,969 |
| Conventional sub-fund | 381 | (3.36%) | 17,531,222 | 374 | 4.05% | 19,301,087 |
| Dynamic sub-fund | 718 | (3.64%) | 16,336,140 | 696 | 4.57% | 17,234,845 |
| Aggressive sub-fund | 1,706 | (4.49%) | 5,683,176 | 1,756 | 4.34% | 6,462,291 |
| Total defined contribution | 2,922 | 47,346,978 | 2,936 | 50,994,193 |
The effect of these plans in the income statement for the three-month periods ended 31 March 2022 and 2021 was as follows:
| 3 months 31-03-2022 |
31-03-2022 | 3 months | ||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in Euro | Current services cost |
Net interest | Defined contribution - Contributions for the period |
Impact on net profit (Note 7.1) |
Current services cost |
Net interest | Defined contribution - Contributions for the period |
Impact on net profit (Note 7.1) |
| Pensions with autonomous fund | - | - | - | - | - | - | - | - |
| Defined contributions plans | - | - | 295,921 | 295,921 | - | - | 321,075 | 321,075 |
| - | - | 295,921 | 295,921 | - | - | 321,075 | 321,075 |
| 31-03-2022 | ||||||
|---|---|---|---|---|---|---|
| Amounts in Euro | Trading derivatives |
Hedging derivatives |
Net total | Trading derivatives |
Hedging derivatives |
Net total |
| Balance at the beginning of the period | (1,728,458) | (4,771,149) | (6,499,607) | 3,160,131 | (5,336,693) | (2,176,561) |
| New contracts / settlements | (15,093,340) | 4,050,647 | (11,042,693) | (623,573) | 2,326,437 | 1,702,864 |
| Change in fair value through profit and loss (Note 5.11) | (174,549) | (710,245) | (884,794) | (4,265,016) | (3,191,640) | (7,456,656) |
| Change in fair value through other comprehensive income (Note 5.5) | - | 1,430,747 | 1,430,747 | - | 1,430,747 | 1,430,747 |
| Balance at the end of the period | (16,996,347) | - (16,996,347) | (1,728,458) | (4,771,149) | (6,499,607) |
| 31 March 2022 Amounts in Euro |
Notional | Currency | Maturity | Positive (Note 4.2) |
Negative (Note 4.3) |
Net amount |
|---|---|---|---|---|---|---|
| Hedging | ||||||
| Hedging (future sales) | 198,500,000 | USD | 2022 | - | (3,304,784) | (3,304,784) |
| Hedging (future sales) | 61,000,000 | GBP | 2022 | 15,748 | (203,570) | (187,822) |
| Interest rate swaps - Bonds | 375,000,000 | EUR | 2026 | 8,766,099 | (784,763) | 7,981,335 |
| Energy | 56,078,825 | EUR | 2022 | - | (18,416,081) | (18,416,081) |
| BHKP pulp | 20,340,000 | USD | 2022 | - | (1,165,988) | (1,165,988) |
| 8,781,847 | (23,875,187) (15,093,340) | |||||
| Trading | ||||||
| Foreign exchange forwards (future sales) | 116,294,178 | USD | 2023 | - | (2,038,477) | (2,038,477) |
| Foreign exchange forwards (future sales) | 12,200,000 | GBP | 2022 | 135,470 | - | 135,470 |
| 135,470 | (2,038,477) | (1,903,007) | ||||
| 31 December 2021 Valores em Euros |
Notional | Currency | Maturity | 8,917,317 Positive |
Negative | Net amount |
| Hedging | (Note 4.2) | (Note 4.3) | (25,913,663) (16,996,347) | |||
| Hedging (future sales) | 242,500,000 | USD | 2022 | 9,066 | (1,426,675) | (1,417,609) |
| Hedging (future sales) | 83,000,000 | GBP | 2022 | (483,940) | (483,940) | |
| Interest rate swaps - Bonds | 375,000,000 | EUR | 2026 | 1,621,916 | (2,804,403) | (1,182,487) |
| BHKP pulp | 27,120,000 | USD | 2022 | - | (1,687,112) | (1,687,112) |
| 1,630,982 | (6,402,131) | |||||
| Trading | (4,771,149) | |||||
| Foreign exchange forwards (future sales) | 129,745,503 | USD | 2023 | - | (1,640,154) | (1,640,154) |
| Foreign exchange forwards (future sales) | 9,050,000 | GBP | 2021 | - | (86,856) | (86,856) |
| Foreign exchange forwards (future sales) | 300,000 | CHF | 2021 | - | (1,448) | (1,448) |
| - | (1,728,458) | (1,728,458) |
During the last quarter of 2021, the Group concluded the contracting of derivative financial instruments by acquiring USD 242,500,000 and GBP 83,000,000 in Zero Cost Collar, thus guaranteeing total coverage of the estimated value of exposure for 2022.
During the first quarter of 2022, no additional hedging associated to the interest rate was contracted. Thus, apart from the additional hedges contracted last year in the amount of Euro 75,000,000 to fix the interest rate associated with the Navigator 2020-2026 bond loan, of the same amount, and Euro 100,000,000 to fix the interest rate associated with the Navigator 2021-2026 bond loan, the Group had no other variations regarding interest rate hedges.
In view of the Group's exposure to energy prices, during the first quarter of 2022 a swap was contracted to fix the price of energy sold for a volume of approximately 422,780 MWh, distributed monthly throughout 2022 and ending on 31 December 2022.
As in the previous year, the Group periodically monitors its exposure to the price of BHKP pulp.
During the fourth quarter of 2021, the Group opted to acquire a financial instrument to hedge the pulp price, by contracting a swap to set the price of 30,000 tons of pulp for the next 12 months, ended 31 December 2022.
| Amounts in Euro | Legal proceedings |
Other provisions |
Total |
|---|---|---|---|
| 1 January 2021 | 4,668,105 | 18,741,229 | 23,409,335 |
| Increases | 248,714 | - | 248,714 |
| Reversals | (82,504) | - | (82,504) |
| Impact in profit and loss for the period | 166,210 | - | 166,210 |
| Exchange rate adjustment | 10,233 | - | 10,233 |
| Other transfers and adjustments | (16,250) | - | (16,250) |
| 31 March 2021 | 4,828,298 | 18,741,229 | 23,569,528 |
| Increases | 3,566,496 | 1,300,000 | 4,866,496 |
| Charge-off | (16,250) | - | (16,250) |
| Reversals | (1,361,448) | (512,064) | (1,873,512) |
| Impact in profit and loss for the period | 2,188,798 | 787,936 | 2,976,734 |
| Exchange rate adjustment | (82,072) | - | (82,072) |
| Other transfers and adjustments | 16,250 | 271,641 | 287,891 |
| 31 December 2021 | 6,951,274 | 19,800,806 | 26,752,081 |
| Increases | - | - | - |
| Reversals | - | - | - |
| Impact in profit and loss for the period | - | - | - |
| Exchange rate adjustment | - | 892 | 892 |
| Other transfers and adjustments | - | 5,272 | 5,272 |
| 31 March 2022 | 6,951,274 | 19,806,970 | 26,758,245 |
No refunds of any nature are expected in respect of these provisions.
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
|---|---|---|
| Guarantees provided | ||
| Navigator guarantees for EIB loans | 42,916,667 | 42,916,667 |
| Portuguese Tax Authorities | 4,409,343 | 6,513,318 |
| IAPMEI | 1,280,701 | 1,280,701 |
| Customs clearance | 1,250 | 1,250 |
| State Tax Administration State Agency | - | 1,033,204 |
| Portuguese Environment Agency | 2,052,252 | 1,527,484 |
| Simria | 338,829 | 338,829 |
| Other | 684,651 | 1,987,855 |
| 51,683,693 | 55,599,308 | |
| Purchase commitments | ||
| Amounts in Euro | 31-03-2022 | 31-12-2021 |
| Purchase commitments | ||
| Property, plant and equipment - Industrial equipment | 13,655,638 | 14,612,464 |
| Wood | ||
| Commitments with acquisitions in the subsequent period | 224,600,000 | 287,700,000 |
| Commitments to long-term acquisitions | 85,600,000 | 88,100,000 |
| 323,855,638 | 390,412,464 |
The Navigator Group has made a commitment to achieve carbon neutrality by 2035, with an estimated global investment of Euro 154 million, of which Euro 68 million have already been invested by 31 March 2022.
| Share equity owned | ||||||
|---|---|---|---|---|---|---|
| 31-03-2022 | 31-12-2021 | |||||
| Company | Head Office | Direct | Indirect | Total | Total | Main activity |
| Parent company: The Navigator Company, S.A. Subsidiaries: |
Portugal | - | - | - | - Sale of paper and pulp | |
| Navigator Brands , S.A. | Portugal | 100.00 | - | 100.00 | 100.00 | Acquisition, operation, lease or concession of the use and disposal of trademarks, patents and other |
| Navigator Parques Industriais, S.A. | Portugal | 100.00 | 100.00 | industrial or intellectual property 100.00 Management of industrial real estate |
||
| Navigator Pulp Figueira, S.A | Portugal | 100.00 | - - |
100.00 | 100.00 Paper production | |
| Empremédia - Corretores de Seguros, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 Insurance mediation and advisory services | |
| Empremedia, DAC | Ireland | 100.00 | - | 100.00 | 100.00 Management of shareholdings | |
| Empremedia RE , DAC | Ireland | - | 100.00 | 100.00 | 100.00 Insurance mediation and advisory services | |
| Raiz - Instituto de Investigação da Floresta e Papel | Portugal | 97.00 | - | 97.00 | 97.00 Applied research in the field of pulp and paper industry and forestry activity |
|
| About The Future, S.A. | Portugal | - | 97.00 | 97.00 | 97.00 | Promotion of business units directly or indirectly related to research, development and innovation |
| Enerpulp – Cogeração Energética de Pasta, S.A. | Portugal | 100.00 | - | 100.00 | activities in the field of forest-based bioeconomy 100.00 Energy production |
|
| Navigator Pulp Figueira, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 | Production of cellulose pulp and provision of administration, management and internal advisory services |
| Ema Cacia - Engenharia e Manutenção Industrial, ACE |
Portugal | - | 74.20 | 74.20 | 74.20 | |
| Ema Setúbal - Engenharia e Manutenção Industrial, ACE |
Portugal | - | 80.20 | 80.20 | 80.20 | Provision of industrial maintenance services |
| Ema Figueira da Foz- Engenharia e Manutenção Industrial, ACE |
Portugal | - | 79.80 | 79.80 | 79.80 | |
| Navigator Pulp Setúbal, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 Cellulose pulp production | |
| Navigator Pulp Aveiro, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 Cellulose pulp production | |
| Navigator Tissue Aveiro, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 | |
| Navigator Tissue Ródão , S.A. | Portugal | - | 100.00 | 100.00 | 100.00 | Tissue paper production |
| Navigator Tissue Iberica , S.A. | Spain | - | 100.00 | 100.00 | 100.00 Sale of tissue paper | |
| Portucel Moçambique - Sociedade de Desenvolvimento Florestal e Industrial, Lda |
Mozambique | 90.02 | - | 90.02 | 90.02 Forestry production | |
| Navigator Internacional Holding SGPS, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 Management of shareholdings | |
| Navigator Forest Portugal, S.A. | Portugal | 100.00 | - | 100.00 | 100.00 Forestry production | |
| EucaliptusLand, S.A. | Portugal | - | 100.00 | 100.00 | 100.00 Forestry production | |
| Sociedade de Vinhos da Herdade de Espirra - | Portugal | - | 100.00 | 100.00 | 100.00 Wine production | |
| Produção e Comercialização de Vinhos, S.A. Gavião - Sociedade de Caça e Turismo, S.A. |
Portugal | - | 100.00 | 100.00 | 100.00 Management of hunting resources | |
| Afocelca - Agrupamento complementar de empresas para protecção contra incêndios, ACE |
Portugal | - | 64.80 | 64.80 | 64.80 Provision of forest fire prevention and fighting services | |
| Viveiros Aliança - Empresa Produtora de Plantas, S.A. |
Portugal | - | 100.00 | 100.00 | 100.00 Plant production in nurseries | |
| Atlantic Forests, S.A. | Portugal | - | 100.00 | 100.00 | 100.00 Provision of services within the scope of forestry activities and trade in timber |
|
| Bosques do Atlantico, SL | Spain | - | 100.00 | 100.00 | 100.00 Trade in wood and biomass and logging | |
| Navigator Africa, SRL | Italy | - | 100.00 | 100.00 | 100.00 Trade in wood and biomass and logging | |
| Navigator Paper Setúbal , S.A. Navigator North America Inc. |
Portugal USA |
100.00 - |
- 100.00 |
100.00 100.00 |
100.00 Paper and energy production 100.00 Sale of paper |
|
| Navigator Afrique du Nord Navigator España, S.A. |
Morocco Spain |
- - |
100.00 100.00 |
100.00 100.00 |
100.00 100.00 |
|
| Navigator Netherlands, BV | The Netherlands |
- | 100.00 | 100.00 | 100.00 | |
| Navigator France, EURL | France | - | 100.00 | 100.00 | 100.00 | |
| Navigator Paper Company UK, Ltd | United Kingdom |
- | 100.00 | 100.00 | 100.00 | |
| Navigator Italia, SRL | Italy | - | 100.00 | 100.00 | 100.00 | |
| Navigator Deutschland, GmbH | Germany | - | 100.00 | 100.00 | 100.00 | Provision of sales intermediation services |
| Navigator Paper Austria, GmbH | Austria | - | 100.00 | 100.00 | 100.00 | |
| Navigator Paper Poland SP Z o o | Poland | - | 100.00 | 100.00 | 100.00 | |
| Navigator Eurasia | Turkey | - | 100.00 | 100.00 | 100.00 | |
| Navigator Rus Company, LLC | Russia | - | - | - | 100.00 | |
| Navigator Paper Mexico | Mexico | 25.00 | 75.00 | 100.00 | 100.00 | |
| Navigator Middle East Trading DMCC | Dubai | - | 100.00 | 100.00 | 100.00 | |
| Navigator Egypt, ELLC | Egypt | 1.00 | 99.00 | 100.00 | 100.00 | |
| Navigator Abastecimento de Madeira, ACE | Portugal | 97.00 | 3.00 | 100.00 | 100.00 Sale of timber |
** Companies liquidated in 2021
| Share equity owned | ||||||
|---|---|---|---|---|---|---|
| 31-03-2022 | 31-12-2021 | |||||
| Company | Head Office | Direct | Indirect | Total | Total | Main activity |
| Purchases of materials, subsidiary materials and | ||||||
| Pulpchem Logistics, A.C.E. | Portugal | 50.00 | - | 50.00 | 50.00 | services used in the pulp and paper production |
| processes |
During the three-month period ended 31 March 2022, the consolidation perimeter was not changed from the previous period.
| 31-03-2022 | 31-12-2021 | ||||
|---|---|---|---|---|---|
| Amounts in Euro | Receivables (Note 4.2) |
Payables (Note 4.3) |
Receivables (Note 4.2) |
Payables (Note 4.3) |
|
| Acionistas | |||||
| Semapa - Soc. de Investimento e Gestão, SGPS, S.A. | - | 7,258,515 | - | 7,470,630 | |
| Other subsidiaries of Semapa Group | |||||
| Secil - Companhia Geral Cal e Cimento, S.A. | - | 37,607 | - | 40,831 | |
| Secil Britas, S.A. | - | 134,059 | - | 138,666 | |
| Secil Prebetão, S.A. | - | 550 | - | 41,858 | |
| CMP ‐ Cimentos Maceira e Pataias, S.A. | - | (406) | - | 24 | |
| Unibetão, S.A. | - | 17,218 | - | 16,527 | |
| Other related parties | |||||
| Hotel Ritz, S.A. | - | 4,385 | - | 3,464 | |
| - | 7,451,929 | - | 7,712,000 |
| 31-03-2022 | 31-03-2021 | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in Euro | Purchase of goods and services |
Sales and services rendered |
Financial (expenses)/ income |
Purchase of goods and services |
Sales and services rendered |
Financial (expenses)/ income |
|
| Shareholders (Note 5.2) | |||||||
| Semapa - Soc. de Investimento e Gestão, SGPS, S.A. | 2,325,661 | - | - | 2,557,189 | - | - | |
| 2,325,661 | - | - | 2,557,189 | - | - | ||
| Other subsidiaries of Semapa Group | |||||||
| Secil - Companhia Geral Cal e Cimento, S.A. | 46,847 | - | - | 15,287 | 15,750 | - | |
| Secil Britas, S.A. | 66,777 | - | - | 102,240 | - | - | |
| CMP ‐ Cimentos Maceira e Pataias, S.A. | - | - | 403 | 8,695 | - | - | |
| Unibetão, S.A. | 8,483 | - | - | 4,097 | - | - | |
| 122,107 | - | 403 | 130,319 | 15,750 | - | ||
| Other related parties | |||||||
| Hotel Ritz, S.A. | 8,547 | - | - | 4,474 | - | - | |
| 8,547 | - | - | 4,474 | - | - | ||
| 2,456,315 | - | 403 | 2,691,982 | 15,750 | - |
On 1 February 2013, a contract to render administrative and management services was signed between Semapa - Sociedade de Investimentos e Gestão, SGPS, S.A. (currently owner of 69.97% of the Group´s share capital) and Navigator Group, establishing a remuneration system based in equal criteria for both parties in the continuous cooperation and assistance relationships, that meets the rules applicable to commercial relationships between Group companies.
The operations performed with the Secil Group arise from normal market operations.
In the identification of the Navigator Company Group's related parties for the purpose of financial reporting, the members of the Navigator Company Group's Board of Directors and other corporate bodies were considered as related parties.
These financial statements are a translation of the financial statements originally issued in Portuguese. In the event of discrepancies, the Portuguese language version shall prevail.
Ricardo Miguel dos Santos Pacheco Pires Chairman of the Board of Directors
António José Pereira Redondo Chairman of the Executive Board
Adriano Augusto da Silva Silveira Executive Board Member
José Fernando Morais Carreira de Araújo Executive Board Member
Nuno Miguel Moreira de Araújo Santos Executive Board Member
João Paulo Araújo Oliveira Executive Board Member
João Paulo Cabete Gonçalves Lé Executive Board Member
Manuel Soares Ferreira Regalado Member
Maria Teresa Aliu Presas Member
Mariana Rita Antunes Marques dos Santos Member
Sandra Maria Soares Santos Member
Vítor Manuel Rocha Novais Gonçalves Member
Vítor Paulo Paranhos Pereira Member
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