The Navigator Company, S.A. (NVG) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to the webcast for the first quarter of 2021 Results. Participating in the call today are the following members of the Board: António Redondo, Adriano Silveira, João Lé, Fernando Araújo and Nuno Santos. As usual, we will start with a brief presentation of the main highlights of the period, and we will have a Q&A session at the end. Presentation can be accessed through the link available on the website, and questions may be addressed also to the webcast platform. António will start with a comment on the main figures recorded in this period. António, please?

Good morning, and thank you for joining us today. I will start by going to Slide 4 and make a global overview on Q1 2021. The quarter was marked by the new lockdowns implemented in most of the group's key markets. And the pace of paper demand remains at the same level as was in the fourth quarter of 2020. List prices for pulp recovered strongly over the period and successive price increases were implemented, a number of price increments of paper were also announced. We have scheduled to take our largest equipment with maintenance stoppage at Figueira da Foz in Q1, impacting the pulp and paper mills in a period of 11-day shutdown and the slow start that computed a total of about 13 days shutdown. This has, of course, an impact on level of output for sales and volumes of pulp, paper and energy, which declined versus Q4 2020 and versus Q1 2020 as well. Tissue business progressed well in the quarter in spite of the impact of lockdowns and travel restrictions continue to affect the Away-from-Home segment. We kept our efforts to contain costs, both fixed and payable and ended the quarter with some relevant savings. We registered an EBITDA margin of EUR 71 million and reached an EBITDA sales ratio of 21%. We maintained the capital management of our working capital and ended the quarter with a strong generation of free cash flow. We finished the construction of our solar plant at Figueira da Foz with an annual installed capacity of 2.6 megawatt power, increasing the energy generation through renewable sources and going 1 step further in our decarbonization goals. We also presented our new 2030 sustainability agenda and responsible business management agenda, which seeks to increase the company's positive contribution to creating value and sustainable growth in a changing world. This agenda is fully aligned with our purpose of commitment to creating sustainable value for our shareholders and for society as a whole. So let's go now to Slide #5, please, with an overview of the main figures for the quarter. Turnover stood at EUR 341 million, in line with Q4 2020 and 16% below Q1 2021. This year-on-year evolution was mainly due to the reduction in paper and pulp volumes and the lower sales price for paper. EBITDA reached EUR 71 million, 6% below Q4 2020 and 30% lower than a year ago. CapEx stood at EUR 20 million, EUR 9 million above Q4 and EUR 3 million under Q1 2020. Adriano Silveira will comment on the CapEx plan, but this includes of mainly maintenance and environment and the decarbonization project. Strong free cash flow raised in the quarter, as I just mentioned previously, of EUR 56 million, comparing very favorably with EUR 15 million registered in Q1 2020. So net debt stood at EUR 624 million at the end of the quarter and net debt-to-EBITDA ratio improved slightly to 2.33x from year-end. If we turn to Slide 6, we have an overview of the evolution of the last 6 quarters. In terms of production output and sales for paper and pulp, Q1 2020 is clearly impacted by the lockdown restrictions and by planned maintenance stoppages that took place in March and that implies about 13 days of downtime I commented before. Maintenance at paper mill in Figueira occurs every 18 months. So the last equivalent downtime was in Q3 2019. The maintenance stoppages in Setúbal and Aveiro took place in Q2 2020, and we have planned 2021 stoppages for Aveiro during Q3. Tissue output remained solid and comparable to previous quarters. The decline in pulp and paper volume was partially offset by the improvement in average selling price, namely in pulp. Financial figures in Q1 reflect a stabilization versus the preceding quarters in terms of turnover and EBITDA. The comparison with Q1 2020 is, of course, much harder as that period was only impacted by the COVID-19 difficulties at the very end. I will ask now Fernando to comment on the EBITDA evolution. Fernando, please?

Thank you, António. Turning to Slide 7. We can take a closer look at the main impact of EBITDA on a year-on-year comparison. As mentioned, COVID lockdowns and planned production stoppage had a negative impact on the top line of Q1 2021. Declining volumes for pulp and paper had a negative effect of EUR 9 million, but the greatest impact comes from prices with overall effect EUR 29 million. The benchmark in debt was 6.4%, and Navigator average price was also negatively influenced by the euro U.S. dollar exchange rate, 25% negative impact and geographical and product mix. These 2 negative impacts of prices and volumes were especially offset by the positive relation in fixed and variable costs in a global amount of EUR 18 million. Variable costs were positively impacted by the reduction in energy costs due to the stable registered with the new biomass boiler at Figueira da Foz mill, mainly related to reduced consumption of natural gas. Also, price of natural gas was lower. Lower costs with chemicals, especially due to lower pricing. Positive evolution of wood costs, mainly in terms of specific consumption. This was quite visible at Setúbal mill where specific consumption improved from 3.20 cubic meters per ton to 2.93 cubic meters per ton. Exchange rates also impacted the cost. The stronger euro versus U.S. dollar impact positively on supply of wood from exiting various markets. Fixed costs also evolved positively, improving 9% year-on-year, especially in functioning costs. Turning to Slide 8 with the quarter-over-quarter comparison with EBITDA figures are more aligned, reflecting a similar demand context, both impacted by COVID-19 restrictions. In terms of prices, global impact is clearly positive with an improving pulp, which sustained a special recovery in paper price as well. Still volumes for paper and pulp impact negatively in EBITDA. Costs evolved also positively during the quarter and had a positive contribution. Variable cost factors such as energy and chemicals performed well. And we also achieved significant sales savings in fixed costs, mainly functioning costs. Also noteworthy is the revaluation of biologic assets, namely in Mozambique in Q4 2020, which impact in the period by around EUR 10 million in liquid tax. I will now ask Nuno Santos to comment on the next slide. Nuno, please?

Thank you, Fernando. Let's take a look at pulp and paper prices during the quarter on Slide 10. The recovery in pulp prices is very steep and occurred in a short period of time. The current level is similar with the one registered at the beginning of 2018 at around EUR 840 per ton climbing EUR 290 per ton. The increase in pulp prices has given support to an improvement in paper prices, but the index still shows a modest increment as it is backwards looking and is usually a delay regarding pulp. Paper index has risen EUR 15 per ton from beginning of the year until May 25 to EUR 824 per ton, but is still below the average for 2020 of EUR 836 per ton. On Slide 11, we have an update on the pulp market. After proving to be particularly resilient in 2020 with short fiber growing by 6%, the global pulp market shows a strong price recovery in '21 with several increases. Hardwood pulp in dollars in China was up by around 46% in the first 3 months of the year, up $230 per ton, and rose 29% in Europe, up from $680 per ton to $876 per ton, up 34% in euros. But of course, these prices are at the end of the quarter. Today, increased prices peaks in Europe are above $1,000 or at EUR 842 per ton and at $770 in China. Considering that China prices are net and those in Europe are gross before discounts, we see that there is still room for price convergence between Europe and China over the course of the second quarter. The improvement in prices was sustained by a wide range of factors, among which we may point to macroeconomic aspects as well as others more closely related to the industry. Regarding the more global factors, stimulus measures for the global economy and the strong recovery of the Chinese economy fueled an upward cycle in commodities. With exchange rate trends, appreciation of the Chinese yuan and euro against the dollar also sustained higher prices in dollars. In what relates to the specifics of the industry, the strong recovery in pulp demand, which already started in late 2020, in particular in China, driven by global increase in tissue consumption, a robust printing and writing demand, especially for uncoated woodfree and by demand for carton board made from virgin fiber, ivory board. Also significant was the wide price gap between long and short fiber, which boosts hardwood pulp prices up and also the decline for worldwide in availability of recycled fibers. On the supply side, low stocks in the supply chain, several planned and unplanned production stoppages,with longer-than-usual maintenance shutdowns as a result of pandemic-related restrictions and the conversion of some short fiber pulp capacity to dissolving pulp combined to constrain the amount of hardwood pulp available on the market. Another constraining factor on the availability of pulp is related to logistical issues. So currently, there is still a gap between pulp prices in Europe and China. And very recently, there was some new price increases announced for Europe for June from major pulp producers, announcements that aim to reduce that gap as announcements put the prices at $1,140 for next month, more than $100 from today's peaks. António will now comment on the paper market. Antonio, please?

Thank you, Nuno. On Slide 12, we have summarized some of the main developments in uncoated woodfree. Global demand for printing and wrapping papers fell by around 8% year-to-date March, with uncoated woodfree paper showing a reduction of 5%, more favorable than for coated papers and mechanical papers once again. In Europe, demand for uncoated woodfree paper during the first quarter evolved along similar lines, now 9%, including in April to and year-to-date of minus 4%, with apparent demand up 16% in April. In United States, demand for uncoated woodfree dropped by approximately 14% in the first 3 months of the year. The demand evolution and capacity reduction of around 15% allowed for a recovery in the capacity utilization rate, up from 83% in January to about 88% in March. In terms of balance between demand and supply, North American producers have been reducing their uncoated woodfree capacity and shutting down in the order of 1.8 million tons net between 2019 and 2021, 26% of all U.S. capacity. Also in Europe, other closures were recently announced, which will take around 8% of European capacity in 2021. These shutdowns are creating positive pressure on the balance between paper supply and demand. So looking a bit closer at market condition in Europe on Slide 13, please. We wanted to share some visibility on the market dilution until April. As the first 3 months of 2021 were impacted by new surges in COVID-19 infections and subsequent lockdown versus a period in 2020 where the economic impact of the pandemic was only felt towards the end of the first quarter. So apparent consumption in March and April improved significantly over the 12 preceding months with March only minus 1% and April increasing to 16%. As a result, we have late April decline to 3.9% as mentioned previously. Navigator has been rightfully increasing its order book from 32 days in January to about 57 days in March, currently with orders not yet confirmed, and industry orders have also been improving over the last month, albeit at a slower rate when compared to Navigator. So if we go to Slide 14, we have a closer view of the group's paper and pulp performance. As already mentioned, Navigator decided to bring forward to the first quarter the annual maintenance shutdowns for the pulp mill and for paper machines at Figueira da Foz. Paper sales totaled 335,000 tons in the first period, down by 8.4% in relation to the same period in the previous year and 2% vis-a-vis Q4 2020. The value of uncoated woodfree sales was affected by both the lower volumes and the reduction in global paper prices. Navigator's average sales price was also highly penalized by the evolution of exchange rates, a negative impact of 25% year-on-year. Also, Navigator's products and market mix reflected the pandemic situation in Europe. There was a strong recovery in demand and prices in overseas market, while prices were up in comparison with the last quarter of 2020. So paper turnover remained stable versus Q4 but was 18.5% lower year-on-year. And until the end of March, we raised strong order book, as I mentioned before, was 57 days, and this order book has been kept during the last few months. Our inventories were kept at low levels throughout the quarter, dropping to 13 days at the end of March. Although it compares favorably with our competitors, which stocks estimate at 31 days, our low stock policy did not allow us as it was the case in Q1 2020 to earn more sales volumes from stock variation. I will ask Nuno to comment on the pulp business performance. Nuno, please?

In terms of pulp performance, sales were also impacted by the decrease in pulp available for sale due to both the production stoppages already mentioned and a very low level of inventories at the start of the year. So total sales volume in Q1 was 79,000 tons, 5.5% lower than in Q1 2020 and 19% lower than in Q4 2020. The recovery in pulp prices observed since the start of the year helped to mitigate the decline in sales volumes with sales value showing an increase of 2% year-on-year but a decline of 6.4% quarter-on-quarter. Sales in Europe were up in 2021 versus last year with growth in the decor segment and uncoated woodfree and a reduction in specialties and tissue. Let's take a look at the tissue performance on Slide 15. The tissue market felt the effects of travel restrictions imposed again early in the year, especially in the Away-from-Home segment with the delay in reopening economies and the consequent impact on the HORECA channel and the return to work at the office. As vaccination programs gather speed and the prospects for a return to a degree of normality grew, the At Home sector registered some destocking as households run down inventory, especially when compared with the same period in the previous year. It is now expected a gradual rebound in the Away-from-Home segment. Despite this context, Navigator sales continued the good performance recorded over the previous year, and stood at 27,000 tons, up by around 4% year-on-year and in line with the final quarter of 2020. The average sales price was around 4% lower than 1 year previously, due essentially to the share of reels in the sales mix, given that sales prices for finished goods evolved positively. Sales were, therefore, in line with the first quarter last year and down 2.7% on the fourth quarter. Navigator showed an increase in the weight of the At-Home sales from a year ago, with this segment representing almost 60% of sales versus 50% then. In terms of geographic mix, the weight of sales in Portugal increased to 44% with Spanish market remaining stable at 36%. Adriano will comment on the CapEx now. Adriano, please?

Thank you, Nuno. On Slide 16, we have an overview of the CapEx over the quarter. CapEx totaled EUR 20 million, an amount slightly below the first quarter of 2020, but clearly higher than the fourth quarter 2020. This amount includes approximately EUR 14 million of maintenance and obsolete asset replacement, including the new woodchip pile in Aveiro and EUR 6 million in environmental and decarbonization projects, of which a significant part is still associated with the biomass boiler in Figueira da Foz and also the solar plant in -- also in Figueira da Foz. The new solar plant in Setúbal mill is under construction. Now we would like to give you a very brief overview of our new 2030 sustainability agenda presented in our annual sustainability report summarized on Slide 17, and I will ask João Lé to comment.

Thank you, Adriano. This agenda was designed on the basis of the findings obtained in wide-ranging stakeholders' engagement process and the work already carried out by Navigator in the field of sustainability. With the ambition of generating a positive impact for people in the planet through its business, the 2030 agenda comprises 1 central focus and 3 strategic action areas, which are aligned with the company's purpose and values, which include the commitment to creating value -- sustainable value for our shareholders and for society as a whole. The central focus area, a responsible business, is relevant to all sectors and informs all areas of strategy. This includes topics such as ethics, risk management and value creation as well as innovation. The 3 strategic action areas seek to bring together the material topics on which the company has previously focused and which are reaffirmed even more ambitious lead for the coming decade. These are nature, climate and society. A set of 14 commitments have been established in the 2030 road map in collaboration with the various operational sectors. From 2021 onwards, we will report our performance on each of the 14 commitments in accordance with the goals defining with the key performance indicators. I invite you to take a look at our sustainability report available on our website. Turning to Slide 18. We wanted to make a quick reference to our most recent investment in the solar energy area. As we concluded during Q1, the construction of the solar plant at Figueira da Foz. This plant represents the Navigator's fourth investment in solar energy with the company investing globally over EUR 5 million in the installation of seven thousand and twenty hundred (sic) [ 7,700 ] solar panels with an area of approximately 28,500 square meters with a capacity of 2.6 megawatts and composed by 7,700 solar panels. The new solar plant is now the largest within the group, exceeding the 1 in Setúbal with 2.2 megawatts capacity. This new plant will increase the generation of electrical renewable energy with 0 CO2 emissions and will allow to further avoid emissions in alignment with our decarbonization road map. I will ask Fernando to make the next comments. Fernando, please?

Thank you, João. On Slide 19, we have an overview of free cash flow in Q1. Navigator demonstrated once again a strong cash flow generation capacity. Free cash flow totaled EUR 56 million comparing very favorably with the same period in 2020, EUR 15 million at the time. It should be noted that Navigator's cash generation cycle normally presents very moderate levels in the first quarter. In the fourth quarter of 2020, free cash flow stood at EUR 63.1 million. Despite the gradual upturn in the activity levels comparing by a slight increase in stock levels, especially in raw materials and clients, the continued lower level of investment in working capital has been crucial to a healthy level of free cash flow. Effective management of working capital in which careful policy of supplier management is combined with offers our partner solutions for supporting their liquidity, therefore, remains the cornerstone of the process of managing free cash flow in the company. When looking at the free cash flow generation over the past 12 months, Navigator generated cash flow of approximately EUR 275 million, the highest figure record since 2015. Slide 20, turning to net debt. Navigator net debt fell by approximately EUR 56 million versus EUR 600 million in December 2020. Standing at the end of March at 644 -- EUR 624 million with a consistent reduction path since Q1 2020 when net debt reached EUR 800 million. The net debt-to-EBITDA ratio remains at a conservative level 2.33x, excluding the impact of IFRS 16 on its interest billing net debt. On Slide 21, we can see the debt maturity level of Navigator. Gross debt have relatively steady in relation to year-end 2020. During Q1, Navigator repay a 1-year loan taken in the context of the early days of the pandemic, EUR 40 million and use a facility already contract and negotiated totaling EUR 42.5 million. At the end of the quarter, in April, Navigator undertook a significant restructuring of its debt, repaying loans totaling EUR 240 million, maturity of 2 medium long-term loans of EUR 170 million, yearly repayment of a bond issue of EUR 45 million and repayment of short-term facilities of EUR 25 million. At the same time, the second series of bonds contract in 2020 with the value of EUR 85 million with the maturity in 2023 was issued, and a further bond issue was made with the value of EUR 20 million, also contracting 2020 maturing 2026. This operation enabled the group to fix maturity of its debt to 3.5 years and also to reduce the cost of medium and long-term debt. Now I will return the floor to António.

Let's please turn to Slide 23 with an overview of the quarter and the main developments occurring during the quarter. As mentioned before, Q1 was impacted by new surges in COVID-19 infections and the subsequent lockdowns in several of Navigator's key markets with paper demand evolving at an identical rhythm as the previous quarter and pulp prices showing a great recovery, the steepest recorded in history. The maintenance stoppages anticipated during Q1 impacted pulp, paper and energy output. The tissue business performed very positively in spite of Away-from-Home slowdown related to the current situation. Navigator was able to continue to work on the cost side and registered favorable variable and fixed cost evolution. This positive performance in costs allowed to partially offsetting the lower volume levels and reduced paper prices with EBITDA reaching EUR 71 million and EBITDA sales margin registered about 21%. Careful working capital management allowed to achieve a significant free cash flow during the period. Our balance sheet remains strong with net debt reducing to EUR 624 million, and net debt-to-EBITDA stood at 2.33x. I will take the opportunity to quickly comment on the antidumping process. As we reported in January, the final rate for period of review #3, March 20, 2018, to February 20, 2019, was confirmed and fixed at 6.75%. U.S. authorities should, therefore, initiate reimbursement process in the next months relative to the amount deposited in excess. It is important to note that on every 5-year anniversary of the antidumping duty order, U.S. authorities must begin a procedure called sunset review to reassess whether the antidumping order could be discontinued. U.S. authorities have now decided that the complete revision will be taken place on the antidumping process on uncoated woodfree paper imports to USA object of the original order, including imports from Portugal. Navigator expects this to be a lengthy process, and this decision merely means that the first hurdle has been successfully overcome. Finally, a few words on the outlook for the rest of the year. I think it's fair to say that as the economy recovers and the vaccination plan is implemented, conditions in the pulp, paper and tissue sector can be expected to remain positive overall. Continued high pulp prices in all regions are sustaining the gradual implementation of price rises for paper. As we have seen today, Navigator's order books and those in the industry stood at historically high levels, 57 and 32 days, respectively, at the end of April. On the supply side, some of the cost savings experienced in the first quarter remain in place, in particular, the continued high levels of maritime freights, along with the delays in logistics chain, limiting access to Europe and Navigator's key markets by competitors from other geographical regions. The shutdown of capacity in order of about 1.8 million tons net in the U.S. between 2019 and 2021, as mentioned before, 26% of all U.S. capacity. And other announced closures in Europe, which will take around 8% of routine capacity, are creating positive pressure on the balance between paper supply and demand. In the pulp market, after sharp rises in prices over recent months, the prospects now point to moderate evolution, with a degree of stability in China and prices rise in Europe, narrowing the price differential between the divisions as we have witnessed in the last 2 months. In tissue, rising prices for pulp and other factors of production have put manufacturers' margins under pressure. In February, navigator announced to the market that price rises between 6% and 8% will be implemented for tissue products as from April and the number of other producers have also announced price increases for the second quarter. These increases are currently underway. Navigator will continue to take action on the variables it is able to control, particularly in the management of its fixed and variable costs. The company estimates it will maintain approximately 80% of the savings achieved in running costs between 2019 and 2020, namely in freight running costs as well as on implementing its investment plan and its sustainability projects. Thank you very much.

Thank you, António. This ends our time for the presentation. We are now open for the Q&A session.

[Operator Instructions] We have a question in from António Seladas from A|S Independent Research.

I have 3 questions. The first one is related with your net debt-to-EBITDA level. You mentioned 2.3 and is a conservative level, if you can provide us what is a level that you consider normal? A second question is related with the slow down or coming down of -- in paper demand and your exposure to paper. I know that you don't like to answer this question. Nevertheless, if you can share with us how do you believe the market will evolve in the coming years, namely more tissue, more packaging, less paper or even writing? And how Navigator will be on this environment? And the last question is related to Mozambique, if you can provide us an update on Mozambique projects?

Okay. Thank you very much for your question. We will distribute the questions. I will try to answer your question number two. And I will start by that one. I'll ask Fernando to comment on the net debt-to-EBITDA levels, and I'll ask João Lé to comment about Mozambique. We don't mind personally your questions. Rather various multiple questions we had asked. But we cannot provide guidance. So we can tell you what is possible to tell at this stage. And we are confident that the uncoated woodfree market will probably be more resilient than the majority of people believe, and we are confident of our footprint on the uncoated woodfree market, which is based in very high qualities, very strong brands and a very wide geographical distribution across different continents, different regions of the world, different markets. Some will be probably decreasing further than others, but some in which we are present, are still growing, namely Middle East and Africa. But definitely, definitely, the uncoated woodfree market will hardly be a history of growth for this company. So the 2 areas that we have just mentioned, tissue and progressing in packaging, as we have mentioned before, we are producing packaging for almost 20 years. Although it's something that we will give a lot of visibility. We are keeping -- developing this area of business will likely be, together with pulp, the areas of the development for the country in the coming years. Having said that and going back to uncoated woodfree, let's not forget that we are very well positioned in cost curve, and we have been working very hard in the last few years to keep this cost position. We're working on variable and fixed costs. And we do believe that in uncoated woodfree, although we have probably bought positive views than majority of the people in the vision of the market even if the market decreases, we keep having a very competitive position in uncoated woodfree, which today, as we have seen, represents about 70% of our business. It represents already a few years ago, 80%. So it's natural that not by decreasing the loan, but by increasing others areas of the business the representativeness of uncoated woodfree will slightly go down in the coming years. I will ask now Fernando to comment the first question of net debt-to-EBITDA and what we consider a normal level if we can define what is a normal level. Fernando?

Okay. From our side, investment direct company should have a net debt EBITDA lower 3x. We are lower than 2.5, that's why we call it a conservative level.

Okay. About the Mozambique projects. Well, we -- as we expected and we have planned, we are going with -- we are going on with the operations of harvesting the wood transportation for the -- of that wood to the -- via harbor. And the first shipment predicted -- the first of 3 shipments predicted for this year is about to start. We believe that we -- in the middle of this month, we will start the loading and the other 2 shipments will be following and be concluded this year and everything is going as predicted with no surprises at all whatsoever until now, of course, but everything going ahead like planned. In terms of the Zambézia province, we are following the developments in what relates to the harbor construction. And as far as we know, everything is going okay according to the scenario and the prediction that the concessionaire so far has been sharing with us and with the government. So we are following what is related with those developments and everything is going normally so far.

We have a question from Bruno Bessa of CaixaBank.

I have 4, if I may? And first one related with -- or the first and the second related with pricing, but focusing on first one. If you could provide more color on the implementation of the announced hikes for February and May? And how we stand on this from end of today? And linked also to prices, second question will be related or a bit following, do you plan any further hike over the coming months? We saw a German peer today announcing a price hike for July. Are you planning any kind of hikes over the coming months? So this will be the number one and number two question. The number 3 question, how does the current backlog of the company compare with the same period in 2019? And the last question related with the collection of the compensation in the U.S., if you could share with us the amount still pending with this compensation? Would be appreciated very much.

Thank you, Bruno, for your questions. Can you repeat the last one, please?

Yes. The last one is related with the compensation that you are receiving in the U.S. related with the tariffs that were imposed. If you could share with us the amount that is still pending some collection related with this compensation?

You're talking about the antidumping and the POR3 situation?

Yes. That's correct. How much is pending for -- to be collected there?

Okay. Thank you.

Okay. Thank you, Bruno. I will try to answer the first 2 questions, and Fernando will comment about the compensation of antidumping. I must say that the line was not very, very clear. So I hope I'm going to answer the right questions you have intended to raise. Around -- regarding price increases, just to recap. In Europe, we have led an increased -- a price increase announcement in February that was implemented in March and April, and it was implemented more or less what we have been announcing. We have announced another price increase for May, which will be implemented from the 1st of July onwards. On top of that, we have a certain type of businesses that have fixed prices by semester. So we expect those business also to increase regardless of the announcement, we increase anyhow from July onwards. In the rest of the world, U.S.A., we have announced 2 price increases. The first level was also implemented in March, April and the second one will also be implemented somewhere around July. In overseas markets, we have announced a price increase in December that was implemented in January, another one in January, another one in February, another one in April. So now we are completely focusing ourselves in making sure that these announcements are going to be fully implemented. We do believe there are probably still some room to have further price increases, but this will depend very much on demand evolution on the second half of the year as well as the evolution of the pulp prices. Regarding your second question, which I think was related with our 57 days backlog, it compares very favorably, not only with 2020, but also in 2019. Actually, I think it's the third best in our last 12 to 13 years history for this time of the year. I will ask now Fernando to comment on the antidumping POR3 reimbursement compensation.

Okay. We have still in the balance sheet amount to be reimbursed around USD 5 million. This means more or less EUR 4 million to be recovered.