PERFORMANCE IN 1ST HALF 2024 3
Analysis 2nd Quarter (vs. Q1 2024 and vs. Q2 2023) 4
Analysis 1st Half 2024 vs. 1st Half 2023 4
LEADING INDICATORS5
ANALYSIS OF RESULTS 6
The printing and writing papers industry6
Pulp Market 7
Growth and strong performance in Tissue business9
Packaging - From Fossil to Forest – investment in sustainability, innovation and transformation 10
Power Output of 745 GWh, of which 77% was from renewable energy sources 11
Cost management, favourable demand trends and price levels led to EBITDA of €299 million 11
Financial Results 12
Generation of free cash flow 12
New finance facilities, reaffirming Sustainable Financial Management 12
Capex of € 93 million 14
A BIOINDUSTRY ON THE RIGHT SIDE OF THE FUTURE 15
st place in the Sustainalytics rating agency's Paper and Forestry ranking 1 15
MARKET OUTLOOK 16
FINANCIAL STATEMENTS 18

PERFORMANCE IN 1ST HALF 2024

The 1st half of the year was marked by all-time highs in the pulp reference price and a positive trend in the paper reference price, underpinned by buoyant demand for pulp and paper and significant supply restrictions, namely low stocks at the start of the year, restrictions in the Red Sea, as well as supply pressures in Canada, Scandinavia, Latin America and Asia due to production unavailability, maintenance stoppages, capacity closures and other logistical constraints.

Navigator has a unique competitive position in Europe in terms of the efficiency with which it manages its business mix. It has consistently shown flexibility in adapting to different market dynamics, focussing on results and protecting margins, as was once again the case this quarter.

Navigator remains committed to sustainable investment, business diversification and innovation in all the segments in which it operates. As part of its diversification and growth strategy, during the 2nd quarter Navigator successfully completed the acquisition of Accrol Holdings Plc (Accrol), a leading player in the UK tissue market (4th in the ranking). We are also continuing to focus on diversifying our packaging business, with the innovative integrated production unit for moulded eucalyptus pulp products, intended to replace single-use plastic packaging in the food service and food packaging markets, expected to start up in the 2nd half of 2024. Commissioning of the plant has already begun, and commercial production is expected to begin at the end of the 3rd quarter of 2024, under the gKraft™ Bioshield brand.

It is worth highlighting the recognition, this July, in the annual assessment by the Sustainalytics rating agency, which once again rated Navigator as a low-risk company for investors, placing Navigator in the 1st position of the list of companies with the lowest ESG risk, more precisely on the lower fringe of the 'low' risk level, with the vast majority of issues presenting negligible risk.

Analysis 2nd Quarter (vs. Q1 2024 and vs. Q2 2023)

Navigator recorded turnover of € 529 million (down 1% on Q1 2024; up 11% on Q2 2023);
EBITDA stood at € 165 million (up 24% on Q1; up 35% on Q2 2023), reflected in an EBITDA margin of 31.2% (up 6.4 pp on Q1; up 5.7 pp on Q2 2023);
Net income totalled € 95 million (up 48% on Q1; up 44% on Q2 2023);
Paper and packaging sales totalled approximately 319 thousand tons (down 10% on Q1; up 23% on Q2 2023) whilst the value of sales was down by 9% on the previous quarter and up 12% YoY;
Pulp sales totalled 71 thousand tons (down 35% on Q1; down 43% on Q2 2023), with the value of sales down by 20% on the previous quarter and 14% YoY; in a quarter with less pulp available for the market and maintenance stoppages;
Tissue sales totalled 56 thousand tons (up 48% on Q1; up 50% on Q2 2023), driven by dynamic demand and the new capacity at Accrol, now called Navigator Tissue UK; the value of sales grew by 51% over the previous quarter and by 41% over the same period in 2023;
Order books in the packaging segment continued to grow, due essentially to: (i) improving demand and (ii) development of new product ranges in flexible packaging, enabling Navigator to diversify its business and achieve growth in its client base and markets, which reflects the growing acceptance of Navigator's innovative products based on Eucalyptus fibre. The packaging segment recorded a 90% growth in sales volume this half year compared to the 1st half of 2023.

Analysis 1st Half 2024 vs. 1st Half 2023

Turnover stood at € 1,066 million (up 9% on H1 2023);
EBITDA stood at € 299 million (up 18% on H1 2023), reflected in an EBITDA margin of 28% (up 2.2 pp on H1 2023);
Net income totalled € 159 million (up 16% on H1 2023);
Net debt of € 665 million (excluding IFRS16), impacted by acquisition of Accrol (payment of € 153 million and consolidation of additional debt), distribution of € 150 million in dividends and capex level; Net Debt / EBITDA ratio of 1.21x;
New long-term finance was contracted with maturities of 5, 6 and 7 years, totalling € 300 million. The financial terms are indexed to three indicators envisaged in the Sustainability Agenda of the company, and also aligned with the United Nations Sustainable Development Goals.

	H1	H1	Change (8)
Million euros	2024	2023	H1 24/ H1 23

Total Sales	1,065.5	979.5	8.8%
EBITDA (1)	298.8	253.0	18.1%
Operating Profits (EBIT)	225.6	187.6	20.2%
Financial Results	-10.5	-8.5	-23.2%
Net Earnings	158.9	137.4	15.6%
Cash Flow	232.0	202.8	29.2
Free Cash Flow (2)	-24.6	9.7	- 34.3
Capex	93.0	112.6	- 19.5
Net Debt (3)	664.5	572.5	92.0
EBITDA/Sales	28.0%	25.8%	2.2 pp
ROS	21.2%	19.2%	2.0 pp
ROCE (4)	23.7%	22.0%	1.7 pp
ROE (5)	24.0%	22.4%	1.6 pp
Equity Ratio	42.9%	43.4%	-0.5 pp
Net Debt/EBITDA (6)(7)	1.21	0.89	0.33

LEADING INDICATORS

	Q2	Q1	Change (8)	Q2	Change (8)
Million euros	2024	2024	Q2 24/Q1 24	2023	Q2 24/ Q2 23

Total sales	529.1	536.4	-1.4%	478.3	10.6%
EBITDA (1)	165.2	133.3	23.9%	122.3	35.1%
Operating profits	127.6	97.7	30.6%	88.4	44.4%
Financial results	- 1.6	- 8.8	-81.4%	- 5.8	-71.8%
Net earnings	94.8	64.1	47.9%	65.8	44.1%
Cash flow	132.4	99.7	32.7	99.7	32.8
Free Cash Flow (2)	- 70.8	46.3	- 117.1	- 21.1	- 49.7
Capex	52.3	40.7	11.6	70.9	- 18.5
Net Debt (3)	664.5	443.6	220.8	572.5	92.0
EBITDA/Sales (%)	31.2%	24.9%	6.4 pp	25.6%	5.7 pp
ROS	24.1%	18.2%	5.9 pp	18.5%	5.6 pp
ROCE (4)	26.8%	21.5%	5.4 pp	20.8%	6.1 pp
ROE (5)	28.6%	19.0%	9.6 pp	21.4%	7.2 pp
Equity ratio	42.9%	47.5%	-4.6 pp	43.4%	-0.5 pp
Net Debt/EBITDA (6)(7)	1.21	0.88	0.33	0.89	0.33

Operating profits + depreciation + provisions;
Variation net debt + dividends + purchase of own shares l Q2 2024 impacted by Accrol's acquisition payment of € 153 million and consolidation of additional debt)
Interest-bearing liabilities - liquid assets (not including effect of IFRS 16)
ROCE = Annualised operating income / Average Capital invested (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
Impact of IFRS 16: Net Debt / EBITDA of 1.42; Net Debt / EBITDA (H1 2023) of 0.99;
Variation in figures not rounded up/down

ANALYSIS OF RESULTS

The focus on efficiency and cost management, with a significant reduction in cash costs of between 6% and 14% in all pulp and paper segments (printing and writing, tissue and packaging) in the 1st half of the year compared to the same period last year, the positive evolution of demand and sales growth, along with the commercial strategy and diversification of products and markets, led to the strong results recorded in the 1st half.

The printing and writing papers industry

Demand performed positively over the 1st half of 2024 (May), driven essentially by restocking along the distribution chain, especially in Europe.

Global Demand for Printing and Writing Papers

Source: PPPC, May (2024 vs. 2023)

Globally, apparent demand grew in the 1st half (YtD May) by 1.3% across all segments, with demand for UWF paper strongest, up 1.6%, and CWF papers growing by 0.6%, whilst papers with mechanical fibre experienced growth in demand of 1%.

In Europe, apparent demand for UWF paper grew by 14.8% over the 1st half (YtD June), with the folio segment as the top performer, at 20.6%, followed by cutsize office paper (up 14.8%) and reels (up 10.1%). Navigator recorded an increase in market share in Europe this half year compared to the same period last year.

In the United States, demand declined by 2.6% (YTD May). Despite the drop in market demand, Navigator's sales in the United States grew again, as did its market share. Apparent UWF consumption in other world regions grew by 0.5% (YTD May), with China recording an impressive 7.1% (YtD May), compared to the trend of the last 5 years (CAGR 2.9% 19-23).

The benchmark index for office paper prices in Europe - PIX A4 B-copy – stood at 1,112 €/ton at the end of June (vs. 1,105 €/ton at the end of March). Since the start of the year, office paper prices have increased by approximately 2%. Significantly, from November - when prices in Europe and in overseas markets started to move upwards again - to June, Navigator's UWF price increased by around 4% in Europe, 12% in overseas markets and 8% for the total sales mix. Implementation of the last announced price rise, which start in July, is expected to be concluded during the 3rd quarter.

Capacity utilisation rates in the European industry (output/capacity) averaged 87% in the 1st half, with Navigator operating at above the industry average, at 92%. It should also be noted that we ended the 1st half with an appropriate level of stocks, enabling us to face the market conditions anticipated in the 3rd quarter, when the seasonal effects are expected to be felt more sharply than in previous years.

Navigator's paper and packaging sales totalled 673 thousand tons in the 1st half, up by 26% on the same period in the previous year. The value of sales grew by 11%. Mill brands represented close to 77% of sales in the 1st half (vs. an average of 67% over the period 2012-2023), again pointing to the resilience of the company's branding strategy. The proportion of premium products remained high in relation to 2023, at 59% (compared to an average of 53% in the period 2012-2023).

Of particular note is Navigator's robust business model based on differentiation, premium products and strong own brands in the different markets where we operate, which has allowed us to increase the price premium, as a result of the higher level of our value proposition, reiterating the resilience of the paper and printing and writing business model. When market conditions are more difficult, mill brands and segments with greater value added offer an additional safeguard for Navigator's results.

Pulp Market

The benchmark index for hardwood pulp in Europe – PIX BHKP in dollars – rose to record levels in the 2nd quarter (1,440 USD/ton), and pulp prices have risen by approximately 41% since the start of the year. Prices in China mirrored the developments in Europe, reaching 741 USD/ton at the end of the quarter, up 14% since the start of 2024.

The dynamics of supply and demand were crucial in sending prices upwards in the early months of the year. On the demand side, in Europe, the market of end consumers of cellulose pulp presented strong performance, especially in the printing and writing paper industry, where order books grew substantially, in contrast to the same period in 2023 (up 10.7%), but also for tissue (up 7.1% YTD April). In China, the strong demand for pulp in late 2023

continued into the 1st half of 2024 due to the new paper capacity installed. On the supply side, logistical restrictions in the Red Sea, as well as pressures on supply in Canada, Finland, Latin America and Asia, as a result of production unavailability, maintenance stoppages, capacity closures and logistical constraints, have sustained current price levels.

It should be noted, however, that at the end of the 1st half of the year, demand for short fibre in China slowed down and, with the constraints observed during the first few months of the year being overcome, there was an increase in pulp availability, especially in Europe and the Mediterranean. Nevertheless, demand has been strong, and stocks are still below the historical average of the last 5 years.

In May, stocks at European ports stood at 1.3 million tons, below the historic average for the past 5 years (1.5Mt). In China, pulp stocks stood at 1.7 million tons in June 2024, also below the historical average for the past 5 years (1.8Mt).

In this context, global demand grew in the 1st half by 3.9% YoY in bleached chemical pulp (BCP), 6.3% in hardwood pulp (HW), and 10.3% in eucalyptus pulp (EUCA), most significantly in Europe (+13.6% BCP, +17.8% HW, +16.8% EUCA) and in China (-0.6% BCP, +3.7% HW, +11.2% EUCA).

Global Demand for Pulp

Source: PPPC, May (2024 vs. 2023)

Pulp sales accordingly stood at 181 thousand tons, down by 16% on the same period in 2023, due to the smaller volume of pulp available for sale and the value of sales was down by 8% year-on-year, due to the positive price evolution.

Growth and strong performance in Tissue business

Demand for Tissue paper remained buoyant, with growth of 3.5% since the start of the year in Western Europe (Numera April). Positive effects have been felt from the recovery of household spending power (namely by lower inflation), accompanied by growth in region's tourism sector, boosting the away-from-home segment.

Navigator recorded 1st half tissue sales of 94 thousand tons, up 54% year-on-year, with growth in the value of sales of approximately 41%, as a result of integration of Accrol on 1 May 2024 and of Navigator Tissue Ejea in the 2nd quarter of 2023.

The decision to acquire Accrol, now called Navigator Tissue UK, is in line with the Group's strategy of diversification. By acquiring a leading company in the tissue converting sector, with competitive advantages and values aligned with our own, Navigator has made its first move into the British market.

International sales therefore accounted for 76% of turnover in Tissue business in the 1st half of 2024. The Spanish market took the largest share, with 35% of sales, followed by the UK, with 20%, and France, which accounted for 18% of sales. Sales broke down into 95% finished products and 5% reels, representing an improvement in the mix of 3pp when compared with the same period in 2023.

In terms of client segments, At Home or Consumer (retail) business has grown in importance, currently accounting for 78% of sales, whilst Away-from-home and wholesalers account for the remaining 22%. Attention is drawn to the Group's balanced and diversified customer portfolio, with 6% growth in the number of customers year-on-year (11% considering the integration of Navigator Tissue UK), with the largest client accounting for approximately 11% of total sales.

Tissue Sales 1 2 H1 2024 (vs. H1 2023)

¹ton ² Q2 2023 and H1 2024 includes Tissue Ejea l May e June 2024 includes Tissue UK ³Finished Goods and Reels

Navigator's focus on innovation and differentiation continues to be welcomed by customers, with sales of mill brands growing by 29% YoY in the 1st half of 2024.

A strong contribution to this growth in mill brand sales has come from sales of innovative products (notably Multiusos Super Absorvente and Higiénico Aloe Vera) which again recorded excellent growth, up 16%. The portfolio of Tissue products has benefited significantly from integration of the industrial units in the UK, and now includes wet wipes, moist toilet tissue and facials.

Packaging - From Fossil to Forest – investment in sustainability, innovation and transformation

Demand levels in 2024 had pointed to recovery and a return to normal for the packaging market. After a promising 1 st quarter, the 2nd quarter confirmed the tendency for recovery, with robust and consistent demand. European deliveries of Kraft MF papers (white and brown) reported by CEPI (YTD May) were up by 25% on the same period in 2023.

The packaging segment of Navigator recorded a 90% growth in sales volume this half year compared to the 1st half of 2023. In this context, Navigator implemented price increases in all its markets, justified by the rise in production costs and by improved market performance.

This strong performance is firmly supported by the move into several new segments, above all in the area of Flexible Packaging, where the company launched products in the early months of the year and is now seeing more significant sales volumes. The 1st half of the year also saw a reduction in the dependency on the paper bag segment, with the tilt towards flexible packaging segments. Navigator has continued to broaden its customer base, which already numbers close to 300 clients in a sales operation 100% based on its own brand - gKraft™.

Navigator has based its offering of packaging papers on three gKraft™ macro-segments: BAG, FLEX and BOX, which subdivide into 12 segments for different applications. The innovative introduction of the properties of eucalyptus fibre has been crucial in securing the wide acceptance and recognition that these products already enjoy in the market.

As part of the diversification of the packaging business, the project for the integrated production of eucalyptus moulded cellulose products, intended to replace single-use plastic packaging in the food service and food packaging market, continues to progress as planned, with the commissioning of the plant having already begun and commercial production starting at the end of the 3rd quarter of 2024, under the gKraft™ Bioshield brand. The plant will have a production capacity of around 100 million units a year, making it one of the largest in the world and the first integrated plant in Europe using eucalyptus fibre, entering a market with high potential and growth.

The launch will be based around 7 products for the food sector: a 22cm plate, a 17cm plate (dessert), a 500ml bowl, 1 litre take-away packaging, a laminated tray for raw protein (beef, pork and chicken), a fruit basket and an espresso coffee cup. These 7 products offer production flexibility and scalability for exploiting the various opportunities opening up for substituting plastics. Alongside this, work has proceeded on developing new products, in partnership with national and international clients, and on developing new sustainable barrier property solutions, as well as trials of commercial products.

Power Output of 745 GWh, of which 77% was from renewable energy sources

In the 1st half, sales totalled € 65.1 million, representing a reduction of approximately 28% in relation to the same period in the previous year.

This reduction is explained essentially by the fact that the combined-cycle natural gas power station in Setúbal is operating with only one generator set for self-consumption, with the sale of surplus power to the national grid, when last year all its power output was sold.

These lower figures for power sales are matched, on the other hand, by lower acquisition costs for electrical power for the purchase volume indexed to OMIE.

The Group's industrial units continue to participate in the Regulation Reserve Band Market, a system service provided to the operator of the power grid by qualified major power consumers, designed to contribute to the fundamental aim of safeguarding the security of supply in the National Electrical System, which has already proved to be decisive for protecting domestic consumers and critical users.

Cost management, favourable demand trends and price levels led to EBITDA of €299 million

The focus on efficiency and cost management, the positive evolution of demand and the price level of pulp, printing and packaging paper and tissue paper made it possible to achieve the results presented in the 1st half of the year.

When compared to the same period in 2023, there was a significant reduction in cash costs of between 6% and 14% in all pulp and paper segments (printing and writing, tissue and packaging).

It should be noted that the 1st half of the year was marked by restrictions in the Red Sea, which led to changes in maritime transport routes and an overall upward trend in freight rates. Despite this context, Navigator maintained its downward trend in maritime freight rates and thus saw a reduction in logistics costs in all business segments.

Total fixed costs ended up higher than in the same period last year, due to the inclusion of Navigator Tissue Ejea and Navigator Tissue UK units and employee profit-sharing, as well as higher rejuvenation indemnity costs and nonrecurring costs related to the Accrol acquisition.

In this context, Navigator achieved EBITDA of € 299 million in the 1st half (vs. € 253 million in the same period in 2023), with an EBITDA margin of 28% (up 2.2 p.p. year-on-year).

Financial Results

Financial results showed a loss of € 10.5 million (as compared to € - 8.5 million in the same period in 2023), up by € 2 million year-on-year due to deterioration in foreign exchange results and other financial costs and gains, namely due to an increase in indebtedness as a result of the acquisition.

For their part, financing costs remained stable, with an average cost of debt at the end of June of approximately 2.2%, despite the rise in interest rates, thanks to the policy of hedging interest rate risk.

Pre-tax profits totalled € 215 million (vs. € 179 million in the same period in 2023) and the corporation tax burden for the period was € 56 million (vs. 42 million in H1 2023), with a tax rate for the period of 26% (vs. 23%). Net income stood at € 159 million (vs. €137 million in H1 2023).

Generation of free cash flow

Cash flow generation has remained at a high level as a result of operational performance, although free cash flow for the half year was around € - 25 million (vs. around € 10 million in the same period last year), as a result of the high level of Capex in the period (€ 93 million) and the investment in the acquisition of Accrol in Q2 (payment of € 153 million for the shares and consolidation of additional debt).

New finance facilities, reaffirming Sustainable Financial Management

Net debt stood at € 665 million, excluding IFRS16, at the end of the 1st half, impacted by acquisition of Accrol, by distribution of € 150 million in dividends and capex level. Even so, the Interest-Bearing Net Debt/EBITDA ratio stood at 1.2, further consolidating the financial strength displayed by the Group.

Over the course of the 1st half, Navigator repaid debt of € 72 million, whilst also contracting a significant volume of new long-term finance.

A long-term (7 year) facility of € 55 million was contracted in the 1st quarter, with financial terms tied to the company's ESG performance; € 30 million has already been issued, and the remaining € 25 million can be issued until March 2025.

In the 2nd quarter, further long-term facilities - 5, 6 and 7 years - were contracted with a value of € 300 million, where the financial terms are again tied to attainment of three ESG indicators already included in our Sustainability Agenda, which are in turn aligned with the United Nations Sustainable Development Goals. Two of these facilities, bond issues with a value of € 50 million each, at 5 and 7 years (bullet), respectively, were issued in June at a floating

rate, and financial instruments have in the meantime been contracted to hedge against interest rate risk. The remaining finance facilities, with a value of € 200 million, will be issued in the 2nd half.

Navigator also has long term finance available from the European Investment Bank (EIB) with a value of 115 million euros, which can be drawn in 3 tranches over a period of 18 months after signing (in December 2023), with maturities of up to 12 years. Lastly, there are commercial paper programmes (more than one year), contracted but unused, with a value of € 128.25 million.

Navigator has therefore preserved strong liquidity, with € 468.25 million available in long-term facilities, appropriate average debt maturity, with rationally staggered repayments, and close to 60% of total debt tied to sustainability and 93% of total debt issued on a fixed rate basis, directly or via financial instruments to hedge interest rates, enabling us to maintain low financing costs in a scenario of sharply rising interest rates.

It should be noted that, despite interest rates rising across the market, our average cost of financing at the end of the 1st half remained low, at approximately 2.2%.

Navigator is committed to carrying on its business while complying with principles and best practices related to the Environment, Society and Governance issues (ESG) and has established this Sustainability-Linked Finance

Framework to support the financing and/or refinancing of its activities in general, through bond issues or loans indexed to sustainability indicators. These sustainability-linked financial instruments are effective tools for securing the funding for its operations, and at the same time bolster its commitment to sustainable practices.

These principles are voluntary guidelines which foster transparency and credibility in the sustainability-linked bond and loan markets. The sustainability indicators selected for linking to the financial costs of the financial operations relate to the central goals of our sustainability strategy: i) reduction of CO² emissions (Scope1, EETS basis); ii) purchases of certified wood; iii) consumption of energy from renewable sources.

The indicators described are consistent with the Sustainability Performance Targets presented in timelines with annual targets from 2024 to 2030, and consistent with the planning horizon for the Company's 2030 Agenda.

Capex of € 93 million

In the 1st half of 2024, capital expenditure totalled € 93 million (compared to € 113 million in H1 2023), of which approximately € 41 million was classified as environmental or sustainability investment (ESG), with a positive contribution to reducing future costs, accounting for 44% of total.

Capital expenditure consisted mostly of projects aimed at decarbonisation, maintaining production capacity, modernising plant and achieving efficiency gains, as well as structural and safety projects. The most significant capex projects include the new high efficiency Recovery Boiler in Setúbal, Moulded Cellulose in Aveiro, the new biomass-fuelled lime kiln in Figueira, conversion of the Setúbal lime kiln to burning biomass and the new solar facilities in Figueira da Foz and Vila Velha de Ródão.

Navigator has continued to move forwards with projects under the Recovery and Resilience Plan (RRP), in particular projects addressing the Climate Transition and the Digital Transition. For eligible investments under the RRP, an incentive rate of around 40% is anticipated, corresponding to close to € 100 million, and the company received approximately 21 million in 2023 and 3 million in the 1st quarter.

A BIOINDUSTRY ON THE RIGHT SIDE OF THE FUTURE

1 st place in the Sustainalytics rating agency's Paper and Forestry ranking

Navigator draws its motivation from a corporate purpose that involves sharing value with society and a commitment to generating a positive impact on people and the planet through its business.

It accordingly pays keen attention to global developments, seeking to consolidate its strategy and its ability to steer its operations, successfully and sustainably, through uncertain future, building partnerships with various stakeholder groups and seeking to cooperate with organisations that share its values, creating a positive impact on Society, the Climate and Nature.

Our commitment was recognised, in July, in the annual assessment of the Sustainalytics rating agency, which again classified Navigator as a low risk company for investors, placing it at the top of the list of companies with the lowest ESG risk, in the lower fringes of the "low" risk band, with most material topics presenting only negligible risk.

Navigator tops Sustainalytics' ESG Risk Rating

Navigator was ranked in top place out of a total of 85 global companies in the Paper & Forestry industries cluster, and also top in the sub-group of 63 global companies in the Paper & Pulp cluster and top 5% in more than 16,200 companies worldwide in all business segments.

A continuous commitment to improving practices relating to environmental, social and business governance issues has resulted in sound management of Navigator's exposure to ESG risks, assessed over more than 70 indicators in the Sustainalytics framework, and led to very significant improvement in this rating, since the last assessment, already top-rated.

The indicators assessed encompass topics related to corporate governance, management of carbon emissions, waste and effluents, water management, community relations, products and services, human capital, occupational health and safety, land use and biodiversity, and stakeholder governance.

External recognition of our commitment to sustainability

MARKET OUTLOOK

Economic prospects have improved worldwide since January, but even so trends in global growth remain at a historically low level in the medium term. In its last published report (July 2024), the IMF reiterated its projection for global growth, at 3.2% in 2024, with a slight upwards revision to 3.3% in 2025. In the short term, the economic outlook is only cautiously optimistic, as economic vulnerabilities remain in place, in a contest of persistently high interest rates and continued geopolitical tensions.

In this context, and particularly for pulp and paper business, prudence is to be recommended as regards market evolution for the rest of the year. For pulp, demand is expected to slow and supply to increase, which will bring downwards pressure on benchmark prices for pulp, although these are expected to be slightly higher than last year. At the same time, it is anticipated that the effect of new capacity coming online in Latin America (2.6Mt/year) will be felt above all in 2025, which could ease the pressure expected for the 2nd half of the year.

In the paper segment, the rate of growth in order books is expected to continue to slow down in the 3rd quarter, due to the usual seasonal factors. On the other hand, strong pressure is expected to remain on costs, which are anticipated to stabilise at a level well above that existing before the pandemic. With regard to capacity, there is still scope for further temporary or definitive capacity reductions in the paper sector, due to deteriorating profitability, as a result of the continued high level of variable costs. This possibility has been announced by a number of European players, with the closure of almost 200 thousand tons in the 1st quarter, followed by the closure of a mill in the USA in June, which will take some 170 thousand tons of UWF production capacity off the market. In the 2nd quarter of the year, a further closure was announced in Germany for the end of 2024, which will take another 280 thousand tons off the market each year.

These movements, together with the aforementioned structural increase in producers' cost base, will continue to sustain paper price levels in Europe and in the international markets in which we operate at levels above prepandemic ones.

In the tissue paper segment, demand continues to rise at interesting levels, and growth of 3.2% is estimated for Europe in 2024 (Numera), still lower than in the first few months of the year. The Group has moved to create synergies and economies of scale driven by business growth, in particular with the acquisition of Navigator Tissue Ejea in 2023 and the acquisition of Navigator Tissue UK in 2024.

Navigator remains focussed on cutting costs, both by optimising specific consumption levels and by negotiating prices for logistics, raw and subsidiary materials and energy, although these costs remain above pre-pandemic levels. The current level of costs naturally puts pressure on the price of end products, meaning that they are not expected to move towards the levels recorded in the past.

Navigator's product range, the quality of our brands and distinctive products, our sustainable business approach, the scale of our operations and our sound finances have all supported a resilient business model, enabling us to present consistent results, even in hostile market conditions.

Lisbon, 22 July 2024

Conference Call and Webcast for Analysts and Investors

Date: Thursday, 25 July 2024

Time: 16:00 WET (Western European Time, GMT)

Link to the Conference Call webcast:

https://streamstudio.world-television.com/1076-1695-40146/en

Link for advance registration for telephone access to Conference Call:

https://aiti.capitalaudiohub.com/navigator/reg.html

FINANCIAL STATEMENTS

Condensed interim consolidated income statement

For the periods ended 30 June 2024 and 2023

		6 months	6 months
Amounts in Euro	Note	30-06-2024	30-06-2023

Revenue	2.1	1,065,534,120	979,470,806
Other operating income	2.2	35,937,557	31,914,734
Changes in the fair value of biological assets	3.8	1,567,196	(2,897,398)
Costs of goods sold and materials consumed	4.1	(441,017,459)	(468,418,834)
Changes in production	4.1	5,084,265	27,385,572
External services and supplies	2.3	(234,690,231)	(195,478,931)
Payroll costs	7.1	(101,520,471)	(89,190,649)
Other operating expenses	2.3	(32,136,805)	(29,784,974)
Net provisions	9.1	247,762	(1,289,652)
Depreciation, amortisation and impairment losses in non-financial assets	3.7	(73,401,164)	(64,066,447)
Operating profit/ (loss)		225,604,770	187,644,227
Financial income and gains	5.9	8,558,629	6,565,044
Financial expenses and losses	5.9	(19,008,870)	(15,050,396)
Financial profit/ (loss)		(10,450,241)	(8,485,352)
Group share of (losses)/gains of associates and joint ventures		-	-
Profit before income tax		215,154,529	179,158,875
Income tax	6.1	(56,297,497)	(41,691,349)
Net profit for the period		158,857,032	137,467,526
Attributable to Navigator's equity holders		158,845,066	137,444,689
Attributable to non-controlling interest	5.5	11,966	22,837
Earning per share
Basic earnings per share, Eur	5.2	0.223	0.193
Diluted earnings per share, Eur	5.2	0.223	0.193

Condensed interim consolidated statement of comprehensive income

For the periods ended 30 June 2024 and 2023

		6 months	6 months
Amounts in Euro	Note	30-06-2024	30-06-2023
Net profit for the period
before non-controlling interests		158,857,032	137,467,526
Items that may be reclassified to the income statement
Hedging derivative financial instruments
Changes in fair value	8.2	17,903,353	(2,801,763)
Tax effect		(4,923,422)	770,485
Currency translation differences		2,361,155	2,239,768
Tax on conventional capital remuneration		-	(19,250)
Items that may not be reclassified to the income statement
Remeasurement of post-employment benefits
Remeasurement	7.2.5	(1,179,960)	(1,891,279)
Tax effect	7.2.5	(95,126)	(13,337)
Comprehensive income of associates and joint ventures		1,188	(1,868,348)
Total other comprehensive income net of taxes		14,067,188	(3,583,724)
Total comprehensive income		172,924,220	133,883,802
Attributable to:
Navigator's equity holders		172,913,273	133,883,408
Non-controlling interests		10,947	394
		172,924,220	133,883,802

Condensed interim consolidated statement of financial position

As at 30 June 2024 and 2023

Amounts in Euro	Note	30-06-2024	31-12-2023
ASSETS
Non-current assets
Goodwill	3.1	481,554,914	381,496,008
Intangible assets	3.2	63,373,608	46,198,240
Property, plant and equipment	3.3	1,320,821,155	1,233,223,791
Right-of-use assets	3.6	107,535,019	65,044,454
Biological assets	3.8	117,159,175	115,591,979
Invesment properties	3.4	455,005	463,404
Non-current receivables	4.2	51,717,673	44,399,506
Deferred tax assets	6.2	58,898,305	23,653,501
		2,201,514,854	1,910,070,883
Current assets
Inventories	4.1	314,328,114	286,490,362
Current receivables	4.2	510,753,927	424,740,973
Income tax	6.1	24,605,327	18,385,534
Cash and cash equivalents	5.8	61,943,324	169,464,967
		911,630,692	899,081,836
Total Assets		3,113,145,546	2,809,152,719

EQUITY AND LIABILITIES
Capital and reserves	5.1
Share capital	5.4	500,000,000	500,000,000
Currency translation reserve Fair value reserves	5.4	7,530,529	5,309,023
	5.4	25,878,698	12,898,767
Legal reserves Other reserves	5.4	100,000,000 (5,960,836)	100,000,000 3,481,014
Retained earnings	5.4	547,415,422	418,633,191
Net profit for the period		158,845,066	274,923,820
Equity attributable to Navigator's equity holders		1,333,708,879	1,315,245,815
Non-controlling interests	5.5	337,964	327,018
Total Equity		1,334,046,843	1,315,572,833

Non-current liabilities
Interest-bearing liabilities	5.6	571,718,245	560,085,341
Lease liabilities	5.7	99,639,494	62,848,761
Pensions and other post-employement liabilities	7.2	404,728	-
Deferred tax liabilities	6.2	129,237,603	95,856,013
Provisions	9.1	27,565,137	27,837,286
Non-current payables	4.3	119,299,761	114,670,790
		947,864,968	861,298,191
Current liabilities
Interest-bearing liabilities	5.6	154,689,047	99,259,122
Lease liabilities	5.7	16,136,064	7,148,060
Current payables	4.3	571,657,273	503,046,782
Income tax	6.1	88,751,351	22,827,731
		831,233,735	632,281,695
Total Liabilities		1,779,098,703	1,493,579,886
Total Equity and Liabilities		3,113,145,546	2,809,152,719

Condensed interim consolidated statement of changes in equity

For the periods ended 30 June 2024 and 2023

Amounts in Euro	Note	Share capital	Currency translation reserve	Fair value reserves	Legal reserves	Other reserves	Retained earnings	Net profit for the period	Total	Non controlling interests	Total
Equity as at 1 January 2024		500,000,000	5,309,023	12,898,767	100,000,000	3,481,014	418,633,191	274,923,820	1,315,245,815	327,018	1,315,572,833
Net profit for the period		-	-	-	-	-	-	158,845,066	158,845,066	11,966	158,857,032
Other comprehensive income (net of taxes)		-	2,361,155	12,979,931	-	-	(1,272,879)	-	14,068,207	(1,019)	14,067,188
Total comprehensive income for the period		-	2,361,155	12,979,931	-	-	(1,272,879)	158,845,066	172,913,273	10,947	172,924,220
Appropriation of 2023 net profit for the period:
- Dividends paid	5.3	-	-	-	-	-	(149,995,621)	-	(149,995,621)	-	(149,995,621)
- Appropriation of prior period's net profit		-	-	-	-	-	288,923,820	(274,923,820)	14,000,000	-	14,000,000
- Bonus to employees		-	-	-	-	-	(14,000,000)	-	(14,000,000)	-	(14,000,000)
Transactions with non-controlling interests	5.4	-	-	-	-	(9,441,850)	4,987,262	-	(4,454,588)	-	(4,454,588)
Other changes		-	(139,649)	-	-	-	139,649	-	-	-	-
Total transactions with shareholders		-	(139,649)	-	-		(9,441,850) 130,055,110	(274,923,820)	(154,450,209)	-	(154,450,209)
Equity as at 30 June 2024		500,000,000	7,530,529	25,878,698	100,000,000		(5,960,836) 547,415,422	158,845,066	1,333,708,879	337,964	1,334,046,843

Amounts in Euro	Note	Share capital	Currency translation reserve	Fair value reserves	Legal reserves	Other reserves	Retained earnings	Net profit for the period	Total	Non controlling interests	Total
Equity as at 1 January 2023		500,000,000	5,343,706	33,997,828	100,000,000	3,481,014	224,049,919	392,537,070	1,259,409,537	297,977	1,259,707,514
Net profit for the period		-	-	-	-	-	-	137,444,689	137,444,689	22,837	137,467,526
Other comprehensive income (net of taxes)		-	2,239,768	(2,031,278)	-	-	(3,792,608)	-	(3,584,118)	394	(3,583,724)
Total comprehensive income for the period		-	2,239,768	(2,031,278)	-	-	(3,792,608)	137,444,689	133,860,571	23,231	133,883,802
Appropriation of 2022 net profit for the period:
- Dividends paid	5.3	-	-	-	-	-	(199,984,679)	-	(199,984,679)	-	(199,984,679)
- Appropriation of prior period's net profit		-	-	-	-	-	426,537,070	(392,537,070)	34,000,000	-	34,000,000
- Bonus to employees		-	-	-	-	-	(34,000,000)	-	(34,000,000)	-	(34,000,000)
Distribution of reserves		-	-	-	-	-	-	-	-	-	-
Total transactions with shareholders		-	-	-	-	-	192,552,391	(392,537,070)	(199,984,679)	-	(199,984,679)
Equity as at 30 June 2023		500,000,000	7,583,474	31,966,550	100,000,000	3,481,014	412,809,702	137,444,689	1,193,285,429	321,208	1,193,606,637

Condensed interim consolidated cash flow statement

For the periods ended 30 June 2024 and 2023

		6 months	6 months
Amounts in Euro	Notes	30-06-2024	30-06-2023
OPERATING ACTIVITIES
Receipts from customers		1,074,793,730	1,124,478,450
Payments to suppliers		(784,051,663)	(849,887,009)
Payments to employees		(83,639,722)	(83,857,189)
Cash flows from operations		207,102,345	190,734,252
Income tax received/ (paid)	6.1	(3,539,726)	(87,510,102)
Other receipts/ (payments) relating to operating activities		35,111,496	85,927,563
Cash flows from operating activities (1)		238,674,115	189,151,713
INVESTING ACTIVITIES
Inflows:
Property, plant and equipment		-	227,601
		-	227,601
Outflows:
Property, plant and equipment		(83,873,340)	(84,565,564)
Intangible assets		-	(2,814,362)
Investments in subsidiaries	1.2	(150,779,058)	(60,951,811)
		(234,652,398)	(148,331,737)
Cash flows from investing activities (2)		(234,652,398)	(148,104,136)

FINANCING ACTIVITIES
Inflows:
Interest-bearing liabilities	5.6	154,007,305	104,854,906
Government grants	3.5	13,229,790	4,258,003
Outflows:		167,237,095	109,112,909
Interest-bearing liabilities	5.6	(102,228,743)	(188,601,507)
Amortisation of lease agreements	3.6	(7,421,304)	(4,730,579)
Interest and similar expense		(15,560,179)	(5,108,607)
Distribution of dividends	5.3	(149,995,621)	(199,984,679)
Repayable grants	5.6	(3,609,720)	(3,349,671)
		(278,815,567)	(401,775,043)
Cash flows from financing activities (3)		(111,578,472)	(292,662,135)

CHANGES IN CASH AND CASH EQUIVALENTS (1)+(2)+(3)		(107,556,755)	(251,614,558)
Changes in the consolidation perimeter		-	5,741,210
Effect of exchange rate differences		35,112	299,116
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD Efeitos dos ativos detidos para venda	5.8	169,464,967	343,083,788
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	5.8	61,943,324	97,509,556

CONTENTS Condensed Interim Consolidated Financial Statements

1.	Introduction	25
1.1.	The Group	25
1.2.	Acquisition of Accrol Group's UK consumer tissue business	26
1.3.	Subsequent events	28
1.4.	Basis for prepartion	28
1.5.	New IFRS standards adopted and to be adopted	29
1.6.	Significant accounting estimates and judgements	31
2.	Operating performance	32
2.1	Revenue and segment reporting	32
2.2	Other operating income	38
2.3	Other operating expenses	39
3.	Investments	40
3.1.	Goodwill	40
3.2.	Intangible assets	42
3.3.	Property, plant and equipment	43
3.4.	Investment properties	44
3.5.	Government grants	45
3.6.	Right-of-use assets	48
3.7.	Depreciation, amortisation and impairment losses	49
3.8.	Biological assets	49
4.	Working capital	51
4.1.	Inventories	51
4.2.	Receivables	53
4.3.	Payables	55
5.	Capital structure	56
5.1.	Share Capital and treasury shares	56
5.2.	Earnings per share	57
5.3.	Dividends and reserves distributed	57
5.4.	Reserves and retained earnings	57
5.5.	Non-controlling interests	59
5.6.	Interest-bearing liabilities	60
5.7.	Lease liabilities	63
5.8.	Cash and cash equivalents	64
5.9.	Net financial results	64
6.	Income tax	65
6.1.	Income tax for the period	65

6.2. Deferred taxes 68

7. Payroll	69
7.1. 7.2. 7.3.	Payroll costs Employee benefits Remuneration of corporate bodies	69 70 74
8.	Financial instruments	74
8.1. 8.2. 8.3.	Financial risk management Derivative financial instruments Financial assets and liabilities	74 81 82
9.	Provisions, commitments and contingencies	85
9.1. 9.2. 9.3.	Provisions Commitments Contingent assets and liabilities	85 85 86
10.	Group structure	88
10.1. 10.2. 10.3.	Companies included in the consolidation perimeter Changes in the consolidation perimeter Transactions with related parties	88 89 89
11.	Explanation added for translation	884

1. Introduction

1.1. The Group

The Navigator Group (Group) is comprised by The Navigator Company, S.A., whose name remained unchanged during the period, (until 2015 designated as Portucel, S.A.) and its subsidiaries.

The Navigator Group was created in 1953, 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) incorporated Portucel - Empresa de Celulose e Papel de Portugal, E.P., converted into a Public Limited Company of mainly public capital by Decree-Law 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 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 the largest European producer of uncoated wood-free paper (UWF), with a capacity of 1.6 and 1.6 millions of tons, respectively, and it sells approximately 462 thousand tons of pulp (31 December 2023), 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, thus increasing the free-float.

From 2009 to June 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. The voting rights currently amount to 69.97%.

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.

On 31 March 2023 the acquisition of the Gomà-Camps Group's consumer Tissue business in Spain was concluded, with a view to strengthening the Group's presence in this business segment. The integration of this new mill has elevated Navigator to the position of second largest Iberian tissue producer, with a production and converting capacity of 180 thousand tonnes.

In May 2024, The Navigator Company acquired all the shares representing the share capital of Accrol Group Holdings plc ("Accrol"), a leader in the tissue paper converting segment in the United Kingdom, producing private label toilet rolls, kitchen rolls and facial tissues for most of the main UK retailers, bringing total converting capacity to 311,000 tons.

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. (hereafter referred to as 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

1.2. Acquisition of Accrol Group's UK consumer tissue business

As part of its diversification and growth strategy, the acquisition of the Accrol Group, a leading player in the UK tissue market (4th in the ranking), provided additional capacity to the tissue business segment, with a production and converting capacity of 131 thousand tonnes based on 5 sites: Blackburn (rolls and facials); Leicester (rolls); Leyland (rolls); Flint (wet wipes) and Bridgewater (wet wipes).

Following the entry into the British market through the acquisition of the main independent Group in the tissue paper processing sector, whose competitive advantages and values are aligned with those of the Navigator Group, sales volume and EBITDA in the second quarter benefited from the integration of Accrol on 1 May 2024.

When determining these amounts, Management assumed that any provisionally determined fair value adjustments arising on the acquisition date would be the same if the acquisition date was 1 May 2024.

With this acquisition, the Navigator Group expects a number of synergies in the Tissue segment, as well as an increase in its market share by accessing the Accrol Group's customer portfolio, namely in markets where it intends to strengthen its presence, as well as a reduction in costs through economies of scale.

In the two months to 30 June 2024, the Accrol Group made sales contributions in the amount of Euro 33,308,836. If the acquisition had taken place on 1 January 2024, Management estimates that consolidated sales would have amounted to Euro 1,138,891,427. When determining these amounts, Management assumed that any provisionally determined fair value adjustments arising on the acquisition date would be the same if the acquisition date was 1 January 2024.

Transferred consideration

As part of the acquisition of Accrol Group Holdings Ltd, the consideration transferred amounted to Euro 153,765,150 (GBP 130,823,389) and was paid entirely in cash and cash equivalents, with no contingent consideration associated with this acquisition.

Identification of assets and liabilities acquired and goodwill

As at this date, the Group is carrying out the necessary procedures to recognise and measure the identifiable assets acquired, the liabilities assumed and consequently the calculation of the goodwill, in accordance with IFRS 3. This evaluation will be carried out by external specialised and independent evaluators. In addition, the Group is assessing the tax deductibility of the goodwill arising from this transaction.

Should new information be obtained up to one year after the acquisition regarding facts and circumstances that existed on the acquisition date, this will be reflected in the fair value.

In accordance with IFRS 3, the identification, allocation and accounting of fair value of assets, liabilities and contingent liabilities acquired must take place within twelve months of the acquisition date. The assets acquired and liabilities incurred on the date of acquisition are as follows:

Amounts in Euro	Accrol Group
Non-current assets
Other intangible assets	22,274,833
Property, plant and equipment	61,840,408
Right-of-use assets	41,915,115
Deferred tax assets	14,145,819
Non-current assets	2,758,802
Current assets
Inventories	24,641,130
Current receivables	31,379,588
Cash and cash equivalents	2,986,092
Non-current liabilities
Lease liabilities	(36,390,296)
Deferred tax liabilities	(14,159,924)
Current liabilities
Interest-bearing liabilities	(18,941,046)
Lease liabilities	(9,270,587)
Current payables	(68,883,897)
Income tax	(69,976)
Total identifiable assets and liabilities	54,226,061
Initial goodwill	99,539,089
Total acquisition amount	153,765,150
Cash and cash equivalents	(2,986,092)
Net effect on cash and cash equivalents	150,779,058

Acquisition-related costs

The Group incurred costs related to this acquisition amounting to Euro 3,499,552, related to legal fees incurred in the public takeover bid process and other due diligence costs. These costs are recognised as external services and supplies in the Consolidated income statement and Consolidated statement of comprehensive income.

1.3. Subsequent events

Up to the date of issuing this report there were no subsequent events susceptible of being disclosed in these financial statements.

1.4. Basis for preparation

1.4.1. Authorisation to issue condensed interim consolidated financial statements

These condensed interim consolidated financial statements were approved by the Board of Directors and authorised for issue on 22 July 2024.

1.4.2. Basis for presentation

The condensed interim consolidated financial statements for the six-month period ended 30 June 2024 were prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting.

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 condensed interim consolidated financial statements should be read together with the Navigator Group's consolidated financial statements for the period ended 31 December 2023.

The accounting policies adopted are consistent with those of the previous year and the corresponding interim reporting period, except for the adoption of new and amended standards, as mentioned in Note 1.5.

1.4.5. Basis for measurement

The accompanying condensed interim 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 10.1), and under the historical cost convention, except for biological assets (Note 3.8), and for financial instruments measured at fair value through profit or loss or at fair value through other comprehensive income (Note 8.3), in which derivative financial instruments are included (Note 8.2). The liability related to responsibilities for defined benefits is recognised at its present value deducted from the respective asset.

The condensed interim consolidated financial statements have been prepared in Euro, except if mentioned otherwise.

1.4.6. Comparability

On May 2024, the acquisition of the Accrol Group's consumer Tissue business in the UK was concluded, with a view to strengthening the Group's presence in this business segment. Accordingly, the Financial Statements for the six-month period ended 30 June 2024 include 2 months of operation of the acquired business (Note 1.2).

With the exception of the situation mentioned above, these financial statements are comparable in all material respects with those of the previous year.

1.5. New IFRS standards adopted and to be adopted

1.5.1. Other standards, amendments and interpretations adopted or to be adopted

	Amendment	Date of
		application
Standards and amendments endorsed by the European Union
	On 23 January 2020, the IASB issued an amendment to IAS 1 Presentation of Financial Statements to clarify how to classify debt and other liabilities as current and non-current.
Amendments to IAS 1 – Presentation of Financial Statements	The amendments clarify a criterion in IAS 1 for classifying a liability as non-current: the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period.
	The amendments:	1 January 2024
Clarification of the requirements for classifying liabilities as current or	a) specify that an entity's right to defer settlement must exist at the end of the reporting period;
non-current	b) clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability;
	c) clarify how the loan conditions affect the classification; and
	d) clarify requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments.
	The IASB issued amendments to IFRS 16 – Leases in September 2022 that introduce a new accounting model for variable payments in a sale and leaseback transaction. These amendments confirm that:
	On initial recognition, the seller-lessee includes variable lease payments when it measures a lease - liability arising from a sale-and-leaseback transaction;
Amendments to IFRS 16 – Leases	After initial recognition, the seller-lessee applies the general requirements for subsequent accounting - of the lease liability such that it recognizes no gain or loss relating to the right of use it retains.
Lease liability in a sale and leaseback transaction	A seller-lessee may adopt different approaches that satisfy the new requirements on subsequent measurement. The amendments apply for annual periods beginning on or after 1 January 2024. Early adoption is permitted.	1 January 2024
	Under IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, a seller-lessee will need to apply the amendments retrospectively to sale-and-leaseback transactions entered into or after the date of initial application of IFRS 16. This means that it will need to identify and re-examine sale-and-leaseback transactions entered into since implementation of IFRS 16 in 2019, and potentially restate those that included variable lease payments.

Standards, amendments and interpretations adopted in 2024

	Amendment	Date of
		application
	Standards and amendments endorsed by the European Union
	On 25 May 2023, the International Accounting Standards Board (IASB) published Supplier Finance Arrangements with amendments to IAS 7 – Statement of Cash Flows and IFRS 7 – Financial Instruments Disclosures.
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments	The amendments address disclosure requirements for supplier finance arrangements – also known as supply chain finance, trade payables finance or reverse factoring arrangements.
	The new requirements complement those already included in IFRS standards and include disclosures on:	1 January 2024
Disclosures - Supplier Finance Arrangements	- Terms and conditions of supplier finance arrangements;
	- The amounts of liabilities covered by such agreements, the extent to which suppliers have already received payments from the finance providers and under which caption those liabilities are presented in the balance sheet;
	- The ranges of payment due dates; and
	- Information on liquidity risk.
	The amendments apply for annual periods beginning on or after 1 January 2024.

The changes resulting from these standards had no significant impact on the Navigator Group.

Standards, amendments and interpretations to be adopted in subsequent periods

	Amendment
		application
	Standards and amendments issued and not endorsed by the European Union
	On August 15, 2023, the International Accounting Standards Board (the IASB or Board) issued Lack of Exchangeability (Amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates) (the amendments).
	The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking.
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates	An entity assesses whether a currency is exchangeable into another currency at a measurement date and for a specified purpose. When a currency is not exchangeable, the entity has to estimate a spot exchange rate. According to the amendments, entities will have to provide new disclosures to help users assess the impact of using an estimated exchange rate on financial statements. These disclosures may include:	1 January 2025
Lack of Exchangeability	a) the nature and financial effects of the currency not being exchangeable into the other currency;
	b) the spot exchange rate(s) used
	c) the estimation process; and
	d) the risks to which the entity is exposed because of the currency not being exchangeable into the other currency.
	The amendments apply for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted.

	Date of application
	Standards and amendments issued and not endorsed by the European Union
Amendments to IFRS 9 and IFRS 7 Classification and measurement of financial instruments	The amendments made to IFRS 9 result from the post-implementation review process of the "Classification and measurement" chapter, in which the IASB identified some aspects to be clarified to improve understanding:
	a) Classification and measurement of financial assets - Instruments with complex contractual characteristics
	b) Hedge Accounting - Changes in Hedge Instruments	1 January 2026
	c) Expected credit loss (ECL) model
	Amendments to IFRS 7 disclosures:
	a) Effect of transitioning to new interest rates benchmark
	b) Additional disclosures on risk management, in particular liquidity risk
	c) Fair value disclosures with an emphasis on transparency and comparability
IFRS 18 - Presentation and disclosure in financial statements	The IASB issued IFRS 18 in April 2024 to improve the presentation of financial statements in several areas.
	The introduction of IFRS 18 is one of the most significant changes to reporting standards in more than 20 years. It replaces IAS 1 and must be adopted by 1 January 2027, with comparatives required from the previous period (fiscal year 2026).
IFRS 19 - Disclosures of subsidiaries not subject to public disclosure of financial information	IFRS 19 - Subsidiaries without Public Accountability: Disclosures, was issued by the International Accounting Standards Board (IASB) in May 2024.
	This standard aims to specify reduced disclosure requirements that an eligible entity can apply instead of the disclosure requirements set out in other IFRS standards.	1 January 2027

With respect to the above standards, which are not yet mandatory, the Group has not yet completed the calculation of all impacts arising from their application and has therefore elected not to apply them early.

1.6. Significant accounting estimates and judgements

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:

i) the best information and knowledge of current events and in certain cases on the reports of independent experts, and
ii) the actions that the Group considers it may have to take in the future.

On the date on which the operations take place, the outcome could differ from those estimates.

More significant estimates and judgements are presented below:

Estimates and judgements	Notes
Business combinations	1.2 – Acquisition of Acroll Group's UK consumer tissue business
Recoverability of goodwill	3.1 – Goodwill
	6.1 - Income tax
Uncertainty over income tax treatments	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 of property, plant and equipment	3.3 – Property, plant and equipment

2. Operational performance

2.1 Revenue and segment reporting

In accordance with IFRS 8, the Group considers an operating segment as a component of the group that develops business activities from which it can obtain revenue and incur expenses, whose operating profit or loss are regularly reviewed by the Executive Committee, which is primarily responsible for the Group's operational decision-making for allocation of resources to the segment and the assessment of its performance and for which separate financial information is available.

Each reportable segment corresponds to the value chain of the integrated production process associated with the product of each business segment, (Market Pulp, UWF paper, Tissue Paper and Energy) considering the sales activity of the respective products on the market, in a manner consistent with the information used by the Executive Committee for operational monitoring of its businesses.

Accordingly, intra-segmental sales are those that occur within the same manufacturing plant and whose production inputs are used in the production process of that segment. Thus, the values reported for each operating segment result from the aggregation of the business units and subsidiaries defined in the perimeter of each segment, as well as the cancellation of intra-segment transactions.

Intra-segmental sales correspond to sales between business segments or when there are transactions between manufacturing plants, which are eliminated for consolidation purposes, being this effect reported in the "Cancelations". When aggregating the Group's operating segments, Management defined as reportable segments those that correspond to each of the business areas developed by the Group, as follows:

i. Market pulp bleached eucalyptus BEKP for sale in the market;
ii. UWF paper production and sale of UWF uncoated writing and printing thin paper;
iii. Tissue Paper production and sale of domestic consumption paper;

iv. Biomass renewable energy which includes the cogeneration units and the two independent thermoelectric power plants;
v. Support segment that includes the corporate center (mixed holding).

Regarding the allocation of assets and liabilities to business segments, it should be noted that:

All equipment allocated to the UWF pulp and paper production are included in Property, plant and equipment of the respective segments.
The Group's real estate assets are allocated to the respective business segment.
The assets related to forests are allocated to the pulp and UWF paper segments, according to the production capacity of each segment.
In accordance with the Navigator Company Group's financing policy, all loans are contracted by the Group's holding company, The Navigator Company, S.A., which is responsible for bearing all debt and related charges. Accordingly, interest-bearing liabilities (Note 5.6) are allocated to the "Support" segment, which includes the Group's corporate centre (Holding), with the exception of the repayable grant related to the construction of the new tissue mill, allocated to the "Tissue Paper" segment and a portion of the "Inpactus" grant allocated to the "UWF Paper" segment.

Financial information by operating segment in 2024 and 2023

							30-06-2024
Amounts in Euro	MARKET		TISSUE			*
	PULP	UWF PAPER	PAPER	ENERGY	SUPPORT	CANCELLATIONS	TOTAL

Revenue Sales and services - external
	116,521,920	695,231,691	188,675,312	65,105,197	-		1,065,534,120
Sales and services - intersegment	1,425,161	-	-	21,218,367	289,235,298	(311,878,826)	-
Total Revenue	117,947,081	695,231,691	188,675,312	86,323,564	289,235,298	(311,878,826)	1,065,534,120
PROFIT/ (LOSS)
Operating income (1)	20,149,857	179,419,367	40,441,911	14,589,463	(28,995,828)	-	225,604,770
Financial profit/ (loss)	-	-	-	-	(10,450,241)	-	(10,450,241)
Income tax	-	-	-	-	(56,297,497)	-	(56,297,497)
Net profit for the period							158,857,032
Non-controlling interests	-	-	-	-	(11,966)	-	(11,966)
Profit/ (loss) attributable to equity holders	-	-	-	-	-	-	158,845,066
OTHER INFORMATION
Acquisitions of fixed capital	16,116,544	67,618,758	6,219,823	899,313	2,435,345	-	93,289,783
Depreciation and impairment	(8,466,779)	(40,424,406)	(11,659,301)	(9,359,994)	(3,490,684)	-	(73,401,164)
Provisions ((increases) / reversal)	-	196,684	-	-	51,078	-	247,762
OTHER INFORMATION
SEGMENT ASSETS
Goodwill	-	376,756,383	104,798,531	-	-	-	481,554,914
Property, plant and equipment	148,345,917	748,711,343	283,809,330	134,745,115	5,209,450	-	1,320,821,155
Right-of-use assets	13,851,783	50,551,300	41,365,389	-	1,766,547	-	107,535,019
Biological assets	29,289,794	87,869,381	-	-	-	-	117,159,175
Non-current receivables	6,500,572	28,066,309	13,725,968	-	3,424,824	-	51,717,673
Inventories	34,409,903	214,521,946	63,471,479	988,004	936,782	-	314,328,114
Trade receivables	31,692,932	166,878,564	109,522,516	1,563,062	6,199,087	-	315,856,161
Other current receivables	18,007,771	58,599,009	14,905,002	1,315,917	102,070,067	-	194,897,766
Other assets	8,540,848	69,551,119	45,919,689	-	85,263,913	-	209,275,569
Total Assets	290,639,520	1,801,505,354	677,517,904	138,612,098	204,870,670	-	3,113,145,546
SEGMENT LIABILITIES
Interest-bearing liabilities	-	415,572	50,638,294	-	675,353,426	-	726,407,292
Lease liabilities	15,128,563	54,655,315	44,110,018	-	1,881,662	-	115,775,558
Other current payables	36,270,314	238,479,662	87,438,705	2,976,576	206,492,016	-	571,657,273
Other liabilities	37,325,834	141,249,867	60,065,295	7,486,777	119,130,807	-	365,258,580
Total Liabilities	88,724,711	434,800,416	242,252,312	10,463,353	1,002,857,911	-	1,779,098,703
* Cancellation of intersegment operations. Consolidation adjustments related to intersegment transactions are considered not significant

(1 ) Includes the effects of hedging derivatives of Euro 2,461,233 in the UWF Paper segment.

In the first half of 2024, the Navigator Group recorded turnover in the amount of Euro 1,065,534,120, with paper sales accounting for approximately 65% of turnover (vs. 64%), pulp sales 11% (vs. 13%), Tissue sales 18% (vs. 14%) and energy sales 6% (vs. 9%).

Throughout the first half of 2024 (data to May) there was a positive trend in demand in the paper segment, mainly driven by settling stocks in the distribution chain, particularly in Europe.

Global apparent demand grew by +1.3% in all segments in the first half of the year (ytd May), with the strongest growth of +1.6% in demand for UWF paper and 0.6% growth in CWF paper, while mechanical fibre paper grew by 1%.

In Europe, apparent demand for UWF paper grew by 14.8% over the six-month period (ytd June), with the folio segment showing the highest growth of 20.6%, followed by cutsize office paper (+14.8%) and reels (+10.1%). The Navigator Group recorded an increase in market share in Europe in the first half of the year compared to the same period last year.

In the United States, demand fell by 2.6% (ytd May). Despite this fall in demand, Navigator's sales and market share in the United States grew again, compared to the fall recorded in 2023. Apparent UWF consumption in other world regions grew by 0.5% (ytd May), with China recording strong growth of 7.1% (ytd May), compared to the trend of the last 5 years (CAGR 2.9% 19-23).

In the pulp segment, the benchmark index for short fibre (hardwood) pulp in Europe – PIX BHKP in dollars – rose to record levels (1,440 USD/t), with the price of pulp having risen by approximately 41% since the start of the year. Prices in China followed the growth in Europe, reaching 741 USD/t at the end of the quarter, an increase of 14% since the beginning of 2024.

The dynamics of demand and supply in the first few months of the year were key to the positive trend of prices. In Europe, the performance of the pulp end-user markets proved to be fairly positive in terms of demand, particularly in the printing and writing paper industry, which recorded a substantial increase in incoming orders compared to the same period last year (+10.7%), as well as tissue (+7.1% in April). In China, the high demand for pulp at the end of 2023 continued into the first half of 2024 due to the new paper capacity installed. Logistics constraints in the Red Sea, as well as supply pressures in Canada, Finland, Latin America and Asia caused by production unavailability, maintenance stoppages, capacity closures and logistics constraints, have underpinned current price levels.

It should be noted, however, that at the end of the first half of the year, demand for short fibre in China slowed down and, as the constraints of the first few months of the year were overcome, there was an increase in the availability of pulp, particularly in Europe and the Mediterranean. Notwithstanding this, demand has been extremely strong, and stocks are still below the historical average of the last 5 years.

The tissue paper segment continues to perform well, with demand growing by 3.5 % since the beginning of the year in Western Europe. Positive effects include the recovery of household purchasing power (namely due to lower inflation) as well as with growth in the region's tourism sector, benefiting the away-from-home segment.

During the first half of the year, the Navigator Group's tissue sales volume reached 94,000 tonnes, an increase of 54% over the same period last year, with a growth in sales value of approximately 41%. This development resulted from the integration of Accrol on 1 May 2024 and Navigator Tissue Ejea in the second quarter of 2023.

In the Packaging business line, 2024 began with demand levels showing signs of recovery and a return to normal market operations. After a promising first quarter, the second quarter confirmed the recovery trend with robust and consistent demand. European deliveries of Kraft MF paper (white and brown) reported by CEPI (up to May) grew by +25% compared to the same period in 2023.

Sales in Navigator's packaging segment grew by 90% year-on-year. The Navigator Group has implemented price increases in all its markets justified by rising production costs and improved market performance.

This good performance is guaranteed by the entry into several new segments, primarily in the Flexible Packaging area, in which the Group invested in 2023 and launched commercially in the first few months of the year, and which is now materialising in more significant volumes. The first half of the year was also marked by a reduced dependence on the paper bag segment towards the flexible packaging segments. The Navigator Group continues to expand its customer base, which already numbers close to 300, in a commercial operation based 100% on its own brand – gKraft™.

The amount corresponding to total energy sales was Euro 65,105,197 compared to Euro 89,790,031 in the same period last year, a decrease of approximately 28%. This reduction stems chiefly from the fact that the Setúbal natural gas combined cycle power station is operating with only one group on a self-consumption basis with the sale of surpluses to the national grid, whereas last year it operated on a total sale to the market basis (i.e., without self-consumption). In addition, this lower invoicing of the electricity production activity corresponds to lower electricity purchase costs for the volume of purchases indexed to the Iberian electricity market (OMIE).

The fixed capital expenditure in 2024 stood at Euro 93,289,783, compared with Euro 112,926,786 in the previous year. This amount includes mainly investments aimed at decarbonisation, maintenance of production capacity, upgrading of equipment and improvement of efficiency, structural and safety projects. Nearly 44% of the total investment is environment-related, with the following projects being of particular note: the new high-efficiency recovery boiler in Setúbal; the moulded cellulose plant

in Aveiro; the new biomass lime kiln in Figueira da Foz; the conversion of the lime kiln in Setúbal to burn biomass and the new photovoltaic plants in Figueira da Foz and Vila Velha de Rodão.

The Navigator Group continues to move forward with projects under the Recovery and Resilience Plan (RRP), particularly projects aimed at the Climate Transition and Digital Transition. For eligible investments under the RRP, an incentive rate of about 40% is expected, which corresponds to close to Euro 100 million, with the company receiving approximately Euro 21 million in 2023 and Euro 3.6 million in the first half of 2024.

							30-06-2023
Amounts in Euro	MARKET PULP	UWF PAPER	TISSUE PAPER	ENERGY	* SUPPORT CANCELLATIONS		TOTAL
REVENUE
Sales and services - external
	126,501,644	629,355,180	133,823,951	89,790,031	-	-	979,470,806
Sales and services - intersegment Total Revenue	1,355,251	-	-	15,371,512	346,126,293	(362,853,055)	-
	127,856,895	629,355,180	133,823,951	105,161,543	346,126,293	(362,853,055)	979,470,806
PROFIT/ (LOSS)
Operating income (1)	3,251,523	141,469,056	28,046,592	39,681,725	(24,804,669)	-	187,644,227
Financial profit/ (loss)	-	-	-	-	(8,485,352)	-	(8,485,352)
Income tax	-	-	-	-	(41,691,349)	-	(41,691,349)
Net profit for the period	-	-	-	-			137,467,526
Non-controlling interests	-	-	-	-	(22,837)	-	(22,837)
Profit/ (loss) attributable to equity holders	-	-	-	-	-	-	137,444,689
OTHER INFORMATION
Acquisitions of fixed capital	9,724,455	93,958,584	4,122,378	3,144,372	1,976,997	-	112,926,786
Depreciation and impairment	(7,757,153)	(39,047,177)	(5,781,604)	(8,332,311)	(3,148,202)	-	(64,066,447)
Provisions ((increases) / reversal)	-	-	-	-	(1,289,652)	-	(1,289,652)
OTHER INFORMATION
SEGMENT ASSETS
Goodwill	-	376,756,383	34,609,707	-	-	-	411,366,090
Property, plant and equipment	137,100,232	725,767,925	185,519,432	137,213,537	4,803,596	-	1,190,404,722
Right-of-use assets	12,655,952	46,193,724	-	-	2,163,371	-	61,013,047
Biological assets	29,900,619	89,701,858	-	-	-	-	119,602,477
Non-current receivables	6,657,392	15,916,510	2,250,523	-	8,595,557	-	33,419,982
Inventories	46,322,580	268,463,947	35,953,862	597,122	1,147,220	-	352,484,731
Trade receivables	31,248,972	153,258,864	54,514,219	7,922,034	6,984,878	-	253,928,967
Other current receivables	15,780,684	30,730,476	4,596,037	1,139,781	79,872,200	-	132,119,178
Other assets	4,288,860	63,157,964	12,809,207	-	109,067,315	-	189,323,346
Total Assets	283,955,291	1,769,947,651	330,252,987	146,872,474	212,634,137	-	2,743,662,540
SEGMENT LIABILITIES
Interest-bearing liabilities	-	415,573	38,333,103	-	631,268,203	-	670,016,879
Lease liabilities	13,668,403	49,259,003	-	-	2,290,066	-	65,217,472
Other current payables	74,220,435	358,655,358	32,288,927	1,836,710	82,925,932	-	549,927,362
Other liabilities	16,058,188	116,958,958	14,607,227	8,043,755	109,226,062	-	264,894,190
Total Liabilities	103,947,026	525,288,892	85,229,257	9,880,465	825,710,263	-	1,550,055,903
* Cancellation of intersegment operations. Consolidation adjustments related to inter-segmental transactions are considered not significant.

(1) Includes the effects of hedging derivatives of Euro 16.405.141 in the Energy segment.

The Energy segment also includes revenues associated with guarantees amounting to Euro 3,353,138

Revenue by business segment, by geographic area and by recognition pattern

						30-06-2024
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Total Amount	Total %
Portugal	7,721,280	38,001,873	44,725,392	65,105,197	155,553,742	14.60%
Rest of Europe	87,429,461	419,631,617	142,656,821	-	649,717,899	60.98%
North America	-	40,208,856	464,425	-	40,673,281	3.82%
Latin America	532,292	44,083,808	92,359	-	44,708,459	4.20%
Africa	14,500,078	86,309,780	706,343	-	101,516,201	9.53%
Asia	6,338,809	66,854,643	29,972	-	73,223,424	6.87%
Oceania	-	141,114	-	-	141,114	0.01%
	116,521,920	695,231,691	188,675,312	65,105,197	1,065,534,120	100.00%
Recognition pattern
At a certain moment in time	116,521,920	695,231,691	188,675,312	65,105,197	1,065,534,120	100.00%
Over time	-	-	-	-	-	0.00%

						30-06-2023
					Total	Total
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Amount	%
Portugal	1,263,862	37,275,616	43,293,331	89,790,031	171,622,839	17.52%
Rest of Europe	55,239,559	402,977,044	88,619,991	-	546,836,594	55.83%
North America	445,447	23,884,107	533,181	-	24,862,735	2.54%
Latin America	-	22,731,816	259,729	-	22,991,545	2.35%
Africa	14,015,217	68,506,911	1,094,972	-	83,617,100	8.54%
Asia	55,537,559	73,865,319	22,748	-	129,425,626	13.21%
Oceania	-	114,366	-	-	114,366	0.01%
	126,501,644	629,355,180	133,823,951	89,790,031	979,470,806	100.00%
Recognition pattern
At a certain moment in time	126,501,644	629,355,180	133,823,951	89,790,031	979,470,806	100.00%
Over time	-	-	-	-	-	0.00%

Group's revenue distribution by geographic area

In 2024 and 2023, no single Customer accounted for 10% or more of the Group's total revenues.

2.2 Other operating income

For the six-month periods ended 30 June 2024 and 2023, Other operating income is detailed as follows:

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023

Gains on disposal of non-current assets	39,227	227,798
Grants - CO2 emission allowances	17,754,454	19,843,690
Supplementary income	625,478	492,018
Operating grants	1,324,119	2,999,658
Impairment reversal on receivables (Note 8.1.4)	4,766,871	1,789,594
Impairment reversal on inventories	1,648,643	123,697
Gains on inventories	378,045	243,990
Own work capitalised	1,341,429	549,521
Compensations	23,675	51,686
Other operating income	8,035,616	5,593,082
	35,937,557	31,914,734

Gains on CO² emission allowances correspond to the recognition of free allocation of allowances for 480,955 tons of CO2, at the average price of Euro 73.83 (473,314 tons of CO2, at the average price of Euro 83.87 as at 30 June 2023) (Note 3.2).

Operating grants include Euro 1,202,793 (Euro 999,843 in 2023) relating to grants awarded under the Recovery and Resilience Plan (RRP). This caption also includes grants awarded for research and development projects carried out by the RAIZ institute.

The caption Impairment reversal on receivables includes the amount of Euro 1,078,213 related to the impairment reversal on Trade receivables from Egypt.

Other operating income includes Euro 7,107,596 (Euro 3,816,158 in 2023) relating to the sale of UWF paper and tissue waste.

2.3 Other operating expenses

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023
Cost of goods sold and materials consumed (Note 4.1.2)	441,017,459	468,418,834
External services and supplies
Energy and fluids	64,753,469	32,039,817
Transportation of goods	69,767,395	67,043,574
Specialised work	49,657,012	48,415,359
Maintenance and repair	18,855,137	18,731,155
Rentals	3,781,929	4,343,982
Advertising and marketing	5,906,390	5,586,841
Insurance	6,011,780	5,276,245
Travel and accommodation	2,540,854	2,534,026
Fees	3,884,161	2,655,357
Subcontracts	358,235	574,551
Materials	1,606,269	1,253,277
Communications	665,063	602,845
Other	6,902,537	6,421,902
	234,690,231	195,478,931
Variation in production (Note 4.1.3)	(5,084,265)	(27,385,572)
Payroll costs (Note 7.1)	101,520,471	89,190,649
Other operating expenses
Costs with CO2 emission allowances	16,680,735	18,062,480
Impairment losses on receivables (Note 8.1.4)	1,401,945	42,971
Impairment on inventories (Note 4.1.4)	5,478,259	4,562,677
Other inventory losses	3,727,787	2,718,118
Indirect taxes	1,706,968	1,084,687
Losses on disposal of non-current assets	3,722	2,007
Water resources fee	956,374	945,683
Other operating expenses	2,181,015	2,366,351
	32,136,805	29,784,974
Net provisions (Note 9.1)	(247,762)	1,289,652
Total operating expenses	804,032,939	756,777,468

During the six-month period ended 30 June 2024, there was an increase in energy and fluid costs, mainly due to an increase in the purchase price of electricity compared to the same period of the previous year.

The expenses with CO² correspond to the emission of 245,492 tons of CO² 1 (30 June 2023: 237,136 tons).

Impairment losses on receivables corresponds to the amount of impairment losses on trade receivables in Egypt.

In 2024, the caption Impairment losses on inventories includes the recognition of an impairment on Navigator North America's Slow Movers in the amount of Euro 3,215,908.

In the 6-month period ended 30 June 2024, the increase in Other inventory losses resulted mainly from wood inventory adjustments (Euro 1,832,968), pulp in suspension (Euro 176.624) and baled pulp (Euro 158,722).

¹ CO² emissions from assets in factories, Scope 1 - EU ETS basis.

3. Investments

3.1. Goodwill

Goodwill – net amount

Goodwill is attributed to the Group's cash generating units (CGU's), as follows:

Amounts in Euro	30-06-2024	31-12-2023
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
CGU of the production and sale of Tissue paper in Ejea and France (goodwill resulting from the acquisition of Navigator Tissue Ejea, SL. and Navigator Tissue France, EURL)	4,156,542	4,156,542
CGU of the production and sale of Tissue paper in the United Kingdom (initial goodwill resulting from the acquisition of the Accrol Holdings Plc Group)	100,058,906 481,554,914	- 381,496,008

Navigator Brands, S.A. / Navigator Paper Figueira, S.A.

Following the acquisition of 100% of the former Soporcel - Sociedade Portuguesa de Papel, S.A. (currently 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.

The book value of Goodwill amounts to Euro 376,756,383 for having been subject to annual amortisations until 31 December 2003 (date of transition to IFRS: 1 January 2004), and amortisation, as from that date, the accumulated amount of which was Euro 51,375,871, has ceased. From that date on, depreciation ceased and was replaced by annual impairment tests.

Navigator Tissue Ródão, S.A.

On 6 February 2015, the contracts for the acquisition of AMS-BR Star Paper, S.A. were concluded. (later merged into Navigator Tissue Ródão, S.A.) were concluded, with the authorisation to conclude this transaction being formalised 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.

Navigator Tissue Ejea, S.L.U.

On 31 March 2023, the Navigator Group acquired all the shares representing the share capital of Gomà-Camps Consumer, S.L.U., based in Zaragoza, Spain, which in turn holds the entire share capital of Gomà-Camps France SAS, based in Castres, France. These companies have been renamed Navigator Tissue Ejea, S.L.U. and Navigator Tissue France SAS, respectively.

The Enterprise Value of this acquisition amounted to Euro 60,951,811 and was realised entirely in cash and cash equivalents, with no contingent consideration associated with this acquisition.

The initial acquisition difference of Euro 34,037,142 was deducted from the fair value attributed to property, plant and equipment and intangible assets acquired in the amount of Euro 38,240,800 and Euro 1,600,000, respectively, resulting in final goodwill of Euro 4,156,542.

The valuation techniques used to determine the fair value of the assets acquired were as follows:

Customer portfolio	The multi-period excess earnings method (MPEEM) was used to determine the fair value of the customer portfolio, considering the present value of the portfolio's expected net cash flows
Property, plant and equipment	The fair value of property, plant and equipment acquired, namely land, buildings and factory equipment, was determined in accordance with the replacement cost method, which consists of identifying the replacement value of the assets acquired adjusted for depreciation, in accordance with the useful life of the assets at the date of purchase. According to the study, the following useful lives were considered: - Buildings and other constructions - 40 years; - Industrial equipment - between 25 and 30 years

Customer portfolio

The multi-period excess earnings method (MPEEM) was used to determine the fair value of the customer portfolio,
considering the present value of the portfolio's expected net cash flows

Property, plant and
equipment

The fair value of property, plant and equipment acquired, namely land, buildings and factory equipment, was
determined in accordance with the replacement cost method, which consists of identifying the replacement value of the
assets acquired adjusted for depreciation, in accordance with the useful life of the assets at the date of purchase.
According to the study, the following useful lives were considered:
- Buildings and other constructions - 40 years;
- Industrial equipment - between 25 and 30 years

Navigator Tissue UK

On 24 May 2024, the Navigator Group concluded a public takeover bid, in the form of a "Recommended Firm Cash Offer", for the entire share capital of Accrol Group Holdings Plc (Accrol), a company based in Blackburn, England, which holds 9 subsidiaries, 3 of which operational. Accrol Group is a leader in the tissue paper converting segment in the United Kingdom, producing private label toilet rolls, kitchen rolls and facial tissues for most of the main retailers in the UK.

As part of this acquisition, the consideration transferred amounted to Euro 153,765,150 (GBP 130,823,389) and an initial goodwill of Euro 99,539,089 was recorded.

As at this date, the Group is carrying out the necessary procedures to recognise and measure the identifiable assets acquired, the liabilities assumed and consequently the calculation of the goodwill or gain resulting from the operation, in accordance with IFRS 3. This evaluation will be carried out by external specialised and independent evaluators.

3.2. Intangible assets

Movements in intangible assets

	Industrial property and	C O2 emission	Other intangible	Intangible assets in
Amounts in Euro	other rights	allowances	assets	progress	Total
Gross amount
Balance as at 1 January 2023	70,983	44,781,151	-	-	44,852,134
Allocations	-	39,687,379	-	-	39,687,379
Changes in the perimeter	1,755,429	-	-	-	1,755,429
Acquisitions Adjustments, transfers and write-offs	2,400,000 522,645	- (42,966,321)	-	522,645 (522,645)	2,922,645 (42,966,321)
Balance as at 30 June 2023	4,749,057	41,502,209	- -	-	46,251,266
Changes in the perimeter	(1,755,429)	-	3,346,282	-	1,590,853
Adjustments, transfers and write-offs	(274,409)	-	-	-	(274,409)
Balance as at 31 December 2023	2,719,219	41,502,209	3,346,282	-	47,567,710
Changes in the perimeter (Note 1.2)	8,033,211	-	50,628,820	509,175	59,171,206
Allocations	-	35,508,908	-	-	35,508,908
Adjustments, transfers and write-offs	-	(38,411,618)	-	-	(38,411,618)
Exchange rate adjustment	41,951	-	264,395	2,659	309,005
Balance as at 30 June 2024	10,794,381	38,599,499	54,239,497	511,834	104,145,212
Accumulated amortisation and impairment losses
Balance as at 1 January 2023	(39,043)	-	-	-	(39,043)
Amortisation for the period (Note 3.7)	(114,589)	-	-	-	(114,589)
Changes in the perimeter	(1,341,517)	-	-	-	(1,341,517)
Balance as at 30 June 2023	(1,495,149)	-	-	-	(1,495,149)
Changes in the perimeter	1,341,517	-	(1,341,517)	-	-
Amortisation for the period (Note 3.7)	(148,730)	-	-	-	(148,730)
Adjustments, transfers and write-offs	274,409	-	-	-	274,409
Balance as at 31 December 2023	(27,953)	-	(1,341,517)	-	(1,369,470)
Changes in the perimeter (Note 1.2)	(4,325,507)	-	(32,570,866)	-	(36,896,373)
Amortisation for the period (Note 3.7)	(1,310,606)	-	-	-	(1,310,606)
Impairment losses for the period (Note 3.7)	-	(625,883)	-	-	(625,883)
Adjustments, transfers and write-offs	(376,590)	-	-	-	(376,590)
Exchange rate adjustment	(22,589)	-	(170,093)	-	(192,682)
Balance as at 30 June 2024	(6,063,245)	(625,883)	(34,082,476)	-	(40,771,604)
Net book value as at 1 January 2023	31,940	44,781,151	-	-	44,813,091
Net book value as at 30 June 2023	3,253,908	41,502,209	-	-	44,756,117
Net book value as at 31 December 2023	2,691,266	41,502,209	2,004,765	-	46,198,240
Net book value as at 30 June 2024	4,731,136	37,973,616	20,157,021	511,834	63,373,608

As at 30 June 2024, there was an increase in other intangible assets as a result of the acquisition of the Accrol Group, which are under analysis as part of the procedures the Group is developing for the recognition and measurement of the identifiable assets acquired, in accordance with IFRS 3.

The increase in intellectual property and other rights and other intangible assets in 2023 corresponds to the acquisition of the tissue brands and the valuation of the customer portfolio acquired from Gomà-Camps, respectively.

CO² allowances

	30-06-2024	31-12-2023
CO2 emission allowances (units)	517,815	494,850
Average unit value (Euro)	74.54	83.87
Market quotation (Euro)	66.87	78.06

In the first half of 2024, an impairment charge of Euro 625,883 was recognised.

CO² allowances – movements in the period

	30-06-2024		31-12-2023
Amounts in Euro	Tonnes	Amount	Tonnes	Amount
Opening balance	494,850	41,502,209	574,122	44,781,151
CO2 allowances awarded free of charge (Note 2.2)	480,955	35,508,908	473,314	39,687,379
CO2 allowances returned to the Licensing Coordinating Entity	(457,990)	(38,411,618)	(552,586)	(42,966,321)
Closing balance	517,815	38,599,499	494,850	41,502,209

3.3. Property, plant and equipment

Movements in property, plant and equipment

		Buildings and other	Equipment and other	Assets under
Amounts in Euro	Land	constructions	tangibles	construction	Total
Gross amount
Balance as at 1 January 2023	115,774,318	544,499,868	3,727,191,728	92,156,485	4,479,622,399
Changes in the perimeter	2,763,618	18,905,954	61,489,209	74,053	83,232,834
Acquisitions	-	-	12,235,436	97,768,706	110,004,141
Disposals	(7,696)	-	(31,218)	-	(38,914)
Adjustments, transfers and write-offs	222,875	668,473	28,765,924	(30,225,906)	(568,634)
Balance as at 30 June 2023	118,753,115	564,074,295	3,829,651,078	159,773,338	4,672,251,826
Changes in the perimeter	1,130,458	12,438,973	24,669,998	-	38,239,429
Acquisitions	-	377,216	(2,247,353)	74,847,448	72,977,312
Disposals	(34,147)	(136,266)	(326,410)	-	(496,823)
Adjustments, transfers and write-offs	1,744,278	474,375	70,927,573	(73,866,392)	(720,166)
Balance as at 31 December 2023	121,593,704	577,228,593	3,922,674,887	160,754,394	4,782,251,578
Changes in the perimeter (Note 1.2)	-	-	90,935,683	3,122,595	94,058,278
Acquisitions	-	-	4,108,064	89,181,719	93,289,783
Disposals	(1,148)	-	-	-	(1,148)
Adjustments, transfers and write-offs	922,644	1,061,157	40,808,114	(47,596,684)	(4,804,769)
Effect of exchange rate variation	-	-	474,888	16,307	491,195
Balance as at 30 June 2024	122,515,200	578,289,750	4,059,001,636	205,478,331	4,965,284,917
Accumulated depreciation and impairment losses Balance as at 1 January 2023		(381,686,338)	(2,998,246,653)		(3,379,932,992)
	-			-
Changes in the perimeter	-	(8,940,894)	(31,324,474)	-	(40,265,369)
Depreciation for the period (Note 3.7)	-	(6,842,818)	(54,852,788)	-	(61,695,606)
Disposals	-	-	1,223	-	1,223
Adjustments, transfers and write-offs	-	5,016,157	(4,970,518)	-	45,639
Balance as at 30 June 2023	-	(392,453,893)	(3,089,393,210)	-	(3,481,847,104)
Changes in the perimeter	-	-	-	-	-
Depreciation for the period (Note 3.7)	-	(6,956,995)	(61,529,440)	-	(68,486,435)
Disposals	-	120,107	315,200	-	435,307
Adjustments, transfers and write-offs	-	212,703	657,742	-	870,445
Balance as at 31 December 2023	-	(399,078,079)	(3,149,949,709)	-	(3,549,027,787)
Changes in the perimeter (Note 1.2)	-	-	(32,217,870)	-	(32,217,870)
Depreciation for the period (Note 3.7)	-	(7,443,487)	(60,534,057)		(67,977,543)
Disposals	-	-	-	-	-
Adjustments, transfers and write-offs	-	1,609,875	3,317,813	-	4,927,688
Effect of exchange rate variation	-	-	(168,249)	-	(168,249)
Balance as at 30 June 2024	-	(404,911,691)	(3,239,552,071)	-	(3,644,463,762)
Net book value as at 1 January 2023	115,774,318	162,813,530	728,945,075	92,156,485	1,099,689,407
Net book value as at 30 June 2023	118,753,115	171,620,402	740,257,868	159,773,338	1,190,404,722
Net book value as at 31 December 2023	121,593,704	178,150,514	772,725,178	160,754,394	1,233,223,791
Net book value as at 30 June 2024	122,515,200	173,378,059	819,449,565	205,478,331	1,320,821,155

As at 30 June 2024, Assets under construction include investments related to ongoing development projects, in particular the new recovery boiler in Setúbal (Euro 66,634,250), the new natural gas boiler in Setúbal (Euro 5,025,658), investments in wastewater treatment (Setúbal wastewater treatment plant) (Euro 4,321,917), investments in the removal of chloride and potassium ash in Aveiro (Euro 4,227,088), the rewinding machine in Aveiro (Euro 2,927,730), investments in the electric switchboard and HVAC system in Setúbal (Euro 1,144,433) and (Euro 1,916,237) respectively, the conversion of the lime kilns in Setúbal (Euro 4,000,357), the new bleaching tower in Aveiro (Euro 2,500,000), investments in the new cogeneration plants in Aveiro and Figueira da Foz (Euro 1,072,425) and (Euro 1,445,600) respectively, and investments in the photovoltaic plants in Aveiro and Figueira da Foz (Euro 804,778) and (Euro 1,161,346) respectively. The remainder is related to several projects for improving and optimising the production process.

Of the total investment of Euro 93,289,783, approximately 44% relates to investments classified as ESG and Euro 41,495,554 relates to investments under the Recovery and Resilience Plan (RRP).

Lands includes Euro 113,798,948 (31 December 2023: Euro 115.903.357) classified in the individual financial statements as investment properties, from which Euro 76,853,919 (31 December 2023: Euro 76,765,242) relate to forestry land and Euro 36,945,028 (31 December 2023: Euro 39,138,115) to land allocated to industrial sites.

3.4. Investment properties

Movement in investment properties

		Buildings and other
Amounts in Euro	Land	constructions	Total
Gross amount
Balance as at 1 January 2023	424,744	82,307	507,051
Acquisitions	-	-	-
Disposals	-	-	-
Balance as at 30 June 2023	424,744	82,307	507,051
Acquisitions	-	-	-
Disposals	-	-	-
Adjustments, transfers and write-offs	142,288	530,684	672,972
Balance as at 31 December 2023	567,032	612,991	1,180,023
Acquisitions	-	-	-
Disposals	-	-	-
Balance as at 30 June 2024	567,032	612,991	1,180,023
Accumulated depreciation and impairment losses
Balance as at 1 January 2023	(399,372)	(16,735)	(416,107)
Depreciation for the period (Note 3.7)	-	(823)	(823)
Balance as at 30 June 2023	(399,372)	(17,558)	(416,930)
Depreciation for the period (Note 3.7)	-	(823)	(823)
Adjustments, transfers and write-offs	-	(298,866)	(298,866)
Balance as at 31 December 2023	(399,372)	(317,247)	(716,619)
Depreciation for the period (Note 3.7)	-	(8,400)	(8,400)
Balance as at 30 June 2024	(399,372)	(325,647)	(725,019)

Net book value as at 1 January 2023	25,372	65,572	90,943
Net book value as at 30 June 2023	25,372	64,749	90,121
Net book value as at 31 December 2023	167,660	295,744	463,404
Net book value as at 30 June 2024	167,660	287,344	455,005

The amount for adjustments, transfers and write-offs pertains to the building at Rua São José 35, 2º - A Lisboa 1150-321. The building is owned by the subsidiary Empremédia – Corretores de Seguros, S.A. It is no longer used for the Group's operational activity since the transfer of this subsidiary's employees to the Navigator building on Avenida Fontes Pereira de Melo.

These assets are not allocated to the Group's operating activity, nor do they have any future use determined.

3.5. Government grants

Government grants - movements

	30-06-2024			31-12-2023
Amounts in Euro	Financial	Tax	Total	Financial	Tax	Total
Opening balance	99,667,539	16,234,048	115,901,587	15,916,110	17,900,449	33,816,559
Allocation	8,787,798	-	8,787,798	85,800,391	-	85,800,391
Charge-off (Note 3.7)	(1,027,082)	(833,201)	(1,860,283)	(2,048,962)	(1,666,401)	(3,715,363)
Other movements	-	-	-	-	-	-
Closing balance (Note 4.3)	107,428,255	15,400,847	122,829,102	99,667,539	16,234,048	115,901,587

The allocations for the period relate to the sums allocated under the mobilizing agendas of the Recovery and Resilience Plan (RRP).

Only Euro 13,229,790 of the amount allocated was received in the period, as reflected in the Statement of Cash Flows.

As at 30 June 2024 and 31 December 2023, government grants, by company, were detailed as follows:

			30-06-2024			31-12-2023
Amounts in Euro	Financial	Tax	Total	Financial	Tax	Total
AICEP investment contracts
Enerpulp, S.A.	142,813	-	142,813	179,890	-	179,890
Navigator Pulp Aveiro, S.A.	2,292,586	929,981	3,222,567	2,781,642	1,138,676	3,920,318
Navigator Pulp Setúbal, S.A.	-	-	-	19,692	-	19,692
Navigator Pulp Figueira, S.A.	3,285	7,110,175	7,113,460	5,293	7,465,212	7,470,505
Navigator Parques Industriais, S.A.	1,721,248	-	1,721,248	1,750,927	-	1,750,927
Navigator Tissue Aveiro, S.A.	2,521,133	7,360,691	9,881,824	2,612,638	7,630,160	10,242,798
	6,681,066	15,400,847	22,081,913	7,350,082	16,234,048	23,584,130
Under the Recovery and Resilience Plan
Navigator Forest Portugal, S.A.	36,510	-	36,510	36,510	-	36,510
Viveiros Aliança, SA	18,953	-	18,953	20,800	-	20,800
Navigator Tissue Aveiro, S.A.	12,016,679	-	12,016,679	12,016,780	-	12,016,780
Navigator Paper Setúbal , S.A.	10,980,533	-	10,980,533	10,980,533	-	10,980,533
Navigator Pulp Aveiro, S.A.	18,692,916	-	18,692,916	18,692,916	-	18,692,916
Navigator Pulp Setúbal, S.A.	21,480,000	-	21,480,000	21,480,000	-	21,480,000
Navigator Tissue Rodão, S.A.	8,462,427	-	8,462,427	-	-	-
Navigator Pulp Figueira, S.A.	16,408,219	-	16,408,219	16,408,219	-	16,408,219
Navigator Paper Figueira, S.A.	4,621,122	-	4,621,122	4,621,122	-	4,621,122
Raiz	2,093,527	-	2,093,527	2,157,854	-	2,157,854
	94,810,887	-	94,810,887	86,414,734	-	86,414,734
Other
Navigator Pulp Setúbal, S.A.	4,488,046	-	4,488,046	4,488,046	-	4,488,046
Raiz	1,135,597	-	1,135,597	1,154,590	-	1,154,590
Viveiros Aliança, SA	-	-	-	11,610	-	11,610
Navigator Pulp Figueira, S.A.	142,857	-	142,857	-	-	-
Navigator Tissue Ejea , S.L.	169,802	-	169,802	248,477	-	248,477
	5,936,302	-	5,936,302	5,902,723	-	5,902,723
	107,428,255	15,400,847	122,829,102	99,667,539	16,234,048	115,901,587

The Group expects to recognise grants in profit or loss as follows:

		30-06-2024				31-12-2023
Amounts in Euro	Financial	Tax	Total	Financial	Tax	Total
2024	920,759	833,200	1,753,959	-	-	-
2025	1,343,334	1,398,687	2,742,021	1,685,836	1,666,401	3,352,237
2026	1,224,232	1,390,347	2,614,579	1,335,087	1,398,687	2,733,774
2027	593,384	1,390,304	1,983,688	1,215,985	1,390,347	2,606,332
2028	577,279	1,390,304	1,967,583	585,137	1,390,304	1,975,441
2029	363,824	1,209,424	1,573,248	572,417	1,390,304	1,962,721
After 2029	102,405,443	7,788,581	110,194,024	94,273,077	8,998,005	103,271,082
	107,428,254	15,400,847	122,829,102	99,667,539	16,234,048	115,901,587

Non-repayable Government grants

Incentive to increase pulp production capacity in Figueira da Foz

On 27 December 2018, Navigator Pulp Figueira, S.A signed a tax investment agreement with AICEP, related to the investment associated with the increase of pulp production capacity in Figueira da Foz, which includes a tax incentive up to the maximum amount of Euro 17,278,657, corresponding to 19.5% of the investment made, through the fulfilment, until 31 December 2025 of the contractually defined objectives. This grant, drawn on by the subsidiary to the amount of Euro 14,437,235, is being recognised over 20 years, until 2038, in proportion to the depreciation of the assets, although it has been fully utilised since 2018, by means of a tax rebate.

Incentives for the expansion project of the Cacia pulp mill

On 18 June 2014, the Group's subsidiary, Navigator Pulp Aveiro, S.A., signed two financial and tax incentive agreements with the AICEP – Agência para o Investimento e Comércio Externo de Portugal (Agency for Investment and Foreign Trade of Portugal), effective until 2023 and 2024, respectively, to support the investment to be promoted by that company in the capacity increase project of Aveiro pulp mill, with a total amount of Euro 49.3 million.

The approved grants amount to Euro 9.753 million (repayable) and Euro 5.644 million (tax incentive). This amount has been fully utilised since 2016 and will be recognised in profit or loss in 20 years, until 2034. The contract includes an achievement bonus already recognised in the balance sheet and received in April 2024, which corresponds to the conversion of 75% of the repayable grant in a non-repayable grant, in the amount of Euro 7,314,397, subject to compliance with the objectives established in the contract.

Grant to the Setúbal Lime Kiln Conversion project

As part of the Carbon Neutrality Roadmap, the Group has signed a financial investment contract with the European Union to support investment by Navigator Pulp Setúbal in the conversion of the lime kiln at the Setúbal pulp mill, with a planned total investment of Euro 7,500,000. The maximum approved grant amounts to Euro 4,488,046 and will be paid through a single non-repayable instalment, up to the end of the third year of operation of the equipment, which is expected to begin in the third quarter of 2025.

Recovery and Resilience Plan

The Navigator Group is involved in four Agendas for Business Innovation of the Recovery and Resilience Plan (RRP), through investment of Euro 91.8 million. The Group, through Navigator Paper Setúbal, S.A., is leading the "From Fossil to Forest" (FF2F) Agenda, whose main goal is to develop a range of packaging solutions—focused on the gKRAFT brand to be launched in 2021—and the production of micro fibrillated cellulose for developing mechanical properties and functional barriers (to fats and liquids, amongst others) in these papers. In total, the Group will benefit from support of around Euro 25.9 million from this component of the RRP (C5 - Corporate Capitalization and Innovation).

During 2022, the Group companies Navigator Paper Setubal, S.A., Navigator Pulp Setúbal, S.A., Navigator Paper Figueira, S.A., Navigator Pulp Figueira, S.A., Navigator Pulp Aveiro, S.A. and Navigator Tissue Aveiro, S.A. applied for "Apoio à Descarbonização da Indústria" (Support for Decarbonisation of Industry) under the RRP. This support is part of a set of measures under Component 11 (C11) of the RRP, which aims to contribute to the goal of carbon neutrality by promoting energy transition through energy efficiency, support for renewable energy, focusing on the adoption of low-carbon processes and technologies in industry, the adoption of energy efficiency measures in industry and the incorporation of energy from renewable sources and energy storage. Recently, this was extended to a second phase of application, in which Navigator Tissue Rodão S.A., like the other companies, presented a series of initiatives related to its carbon neutrality. In the future, the Group expects to invest Euro 173.1 million in these initiatives, of which it hopes to receive Euro 75.8 million in funding.

Also in 2022, Group companies applied for RRP incentives for the "Rede Nacional de Test Bed" (National Test Bed Network), which aims to create a national network providing services to companies for the development and testing of new products and services. The application, involving an investment of Euro 2.2 million, was approved at the end of the year and IAPMEI decided to award Navigator Pulp Figueira. S.A. Euro 1.4 million.

However, the Group's participation in the RRP is not complete without RAIZ's participation in Component 12 of the RRP, related to the Bioeconomy, where it plans to invest Euro 1.7 million and receive an incentive of Euro 1.4 million to accelerate, in partnership with CITEVE and other 52 promoters, the creation of high value-added products from biological resources as an alternative to fossil-based materials, while maintaining and even improving quality standards, with great potential in different market segments.

Repayable government grants

On 13 December 2017, the subsidiary Navigator Tissue Aveiro, S.A. entered into an investment agreement with AICEP, effective until 2026, for the construction of the new tissue mill in Aveiro. This agreement comprises a financial incentive in the form of a repayable grant, which includes a grace period of two years, without payment of interest, up to a maximum amount of Euro 42,166,636, corresponding to 35% on the amount of expenses considered eligible, which were estimated at Euro 120,476 million. As at 30 June 2024, the repayable grant has been fully received.

On 20 April 2018, the same entity was also awarded with a tax incentive granted through the compliance of contractually defined requirements until 31 December 2028, whose maximum amount will be Euro 11,515,870, corresponding to 10% of the expenses associated with the project investment. See Note 5.7. This amount has been fully utilised since 2019 and will be recognised in profit or loss, on average, in 24 years, until 2043.

There are no unfulfilled conditions and other contingencies linked to Government grants that have been recognised and Navigator is complying with the conditions according to plan.

3.6. Right-of-use assets

Movements in right-of-use assets

				Software	Other lease
Amounts in Euro	Forestry lands	Buildings	Vehicles	licenses	assets	Total
Gross amount
Balance as at 1 January 2023	58,830,098	4,655,055	11,577,961	1,556,613	9,420,387	86,040,114
Acquisitions	5,866,428	10,062	1,279,033	-	-	7,155,523
Disposals	-	-	-	-	-	-
Balance as at 30 June 2023	64,696,526	4,665,117	12,856,994	1,556,613	9,420,387	93,195,637
Acquisitions	5,249,649	43,682	1,790,750	-	1,764,073	8,848,154
Disposals	-	-	-	-	-	-
Adjustments, transfers and write-offs	-	(356,397)	(2,711,330)	(342,519)	-	(3,410,246)
Balance as at 31 December 2023	69,946,175	4,352,402	11,936,414	1,214,094	11,184,460	98,633,545
Changes in the perimeter (Note 1.2)	-	2,764,428	276,256	175,801	51,704,754	54,921,239
Acquisitions	3,230,970		2,438,046	35,253	57	5,704,326
Disposals	-	-	-	-	-	-
Exchange rate adjustment	-	14,437	1,443	918	270,014	286,812
Balance as at 30 June 2024	73,177,145	7,131,267	14,652,159	1,426,066	63,159,285	159,545,922

Accumulated depreciation and impairment losses
Balance as at 1 January 2023	(12,821,763)	(2,400,948)	(7,281,667)	(1,113,577)	(4,487,317)	(28,105,272)
Depreciation	(1,940,022)	(257,643)	(954,161)	(85,282)	(840,208)	(4,077,316)
Adjustments, transfers and write-offs	-	-	-	-	-	-
Balance as at 30 June 2023	(14,761,785)	(2,658,591)	(8,235,828)	(1,198,859)	(5,327,525)	(32,182,588)
Depreciation	(2,021,408)	(262,522)	(1,578,125)	(265,153)	(1,262,633)	(5,389,841)
Adjustments, transfers and write-offs		356,397	3,240,702	342,519	43,721	3,983,339
Balance as at 31 December 2023	(16,783,193)	(2,564,716)	(6,573,251)	(1,121,493)	(6,546,437)	(33,589,090)
Changes in the perimeter (Note 1.2)		(1,671,085)	(72,706)	(142,632)	(11,119,701)	(13,006,124)
Depreciation	(2,102,596)	(261,163)	(1,194,881)	(106,220)	(1,674,155)	(5,339,015)
Exchange rate adjustment	-	(13,098)	(460)	(809)	(62,306)	(76,673)
Balance as at 30 June 2024	(18,885,789)	(4,510,062)	(7,841,298)	(1,371,154)	(19,402,599)	(52,010,902)

Net book value as at 1 January 2023	46,008,335	2,254,107	4,296,294	443,036	4,933,070	57,934,841
Net book value as at 30 June 2023	49,934,741	2,006,526	4,621,166	357,754	4,092,862	61,013,049
Net book value as at 31 December 2023	53,162,982	1,787,686	5,363,163	92,601	4,638,023	65,044,454
Net book value as at 30 June 2024	54,291,356	2,621,205	6,810,861	54,912	43,756,686	107,535,019

The caption Forestry Lands 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 caption Buildings refers to the lease agreement entered into between The Navigator Company, S.A. e a MaxiRent - Fundo de Investimento Imobiliário Fechado for the building located at Avenida Fontes Pereira de Melo, in Lisbon, for use as an office until May 2027.

The caption Other lease assets includes the forklift truck rental contracts signed since 2020.

As at 30 June 2024, the cash flows associated with the amortisation of lease agreements correspond to financial amortisation of Euro 5,796,516 (Euro 3,534,452 as at 30 June 2023) and interest of Euro 1,624,788 (Euro 1,196,127 as at June 2023) (Note 5.9), for a total amount of Euro 7,421,304 (Euro 4,730,579 as at 30 June 2023), as disclosed in the Cash Flow Statement.

3.7. Depreciation, amortisation and impairment losses

Amounts in Euro	30-06-2024	30-06-2023
Depreciation of property, plant and equipment for the period (Note 3.3)	67,977,543	61,695,606
Charge-off of investment grants (Note 3.5)	(1,860,283)	(1,821,887)
Depreciation of property, plant and equipment, net of grants charged-off	66,117,260	59,873,719

Amortisation of intangible assets for the period (Note 3.2)	1,310,606	114,589
Impairment of intangible assets - losses	625,883	-
Impairment of intangible assets for the period (Note 3.2)	625,883	-
Depreciation of right-of-use assets for the period (Note 3.6)	5,339,015	4,077,316
Depreciation of investment properties (Note 3.4)	8,400	823
	73,401,164	64,066,447

The Group regularly uses external and independent experts to assess its industrial assets, as well as to assess the adequacy of the estimates used in terms of the useful lives of these assets.

3.8. Biological assets

Movements in biological assets

Amounts in Euro	30-06-2024	31-12-2023
Opening balance	115,591,979	122,499,875

Logging in the period	(9,138,348)	(13,351,173)
Growth	13,601,092	13,672,219
New planted areas and replanting	1,080,360	1,740,457
Other changes in fair value
- changes in other species	449,149	(628,406)
- other changes in expectations	(4,425,057)	(4,330,495)
Total changes	1,567,196	(2,897,398)
Amount as at 30 June	117,159,175	119,602,477
Remaining quarters		(4,010,498)
Amount as at 31 December		115,591,979

The Navigator Group considers, in accordance with IAS 41, mature assets to be those that have reached the necessary specifications to obtain the maximum yield based on their profitability, supply needs and opportunity cost. Typically, the forest in Portugal reaches its maturity between 8 and 12 years, and this reference depends on the species, soil conditions, as well as edaphoclimatic conditions. Data on the forest, its condition and its future potential are measured at least twice throughout its growth cycle.

The discount rate used in the 6-month period ended 30 June 2024 was 5.19% (2023: 5.19%). Note that the Group incorporates the fire risk into the model's cash flows. If this risk were incorporated into the discount rate, it would be of 7%.

As at 30 June 2024 and 31 December 2023, biological assets, by species, is detailed as follows:

Amounts in Euro	30-06-2024	31-12-2023
Eucalyptus (Portugal)	89,183,975	88,244,919
Eucalyptus (Spain)	1,814,063	1,628,022
Pine (Portugal)	5,969,428	5,898,445
Cork oak (Portugal)	1,213,315	835,149
Other species (Portugal)	73,107	73,107
Eucalyptus (Mozambique)	18,905,287	18,912,337
	117,159,175	115,591,979

These amounts correspond to Board of Directors' expectation of the volumes to be extracted from its woodlands in the future, as follows:

	30-06-2024	31-12-2023
Eucalyptus (Portugal) - Potential future of wood extractions k m3ssc	10,577	10,447
Eucalyptus (Spain) - Potential future of wood extractions k m3ssc	251	252
Pine (Portugal) - Potential future of pine extractions k ton	273	290
Cork Oak (Portugal) - Potential future of cork extractions k @	502	488
Eucalyptus (Mozambique) - Potential future of wood extractions k m3ssc	3,632	3,570

Concerning Eucalyptus, the most relevant biological asset in the financial statements, the Group extracted, as at 30 June 2024, 238,346 m3ssc of wood from its owned and explored forests (31 December 2023: 594,709 m3ssc).

As at 30 June 2024 and 31 December 2023, (i) there are no amounts of biological assets whose property is restricted and/or pledged as guarantee for liabilities, nor there are non-reversible commitments related to the acquisition of biological assets, and (ii) there are no government grants related to biological assets recognised in the Group's consolidated financial statements.

4. Working capital

4.1. Inventories

4.1.1. Inventories - detail by nature

Amounts net of accumulated impairment losses

Amounts in Euro	30-06-2024	31-12-2023
Raw material	163,107,347	148,367,213
Goods	114,541	843,675
Subtotal (Note 4.1.2)	163,221,888	149,210,888
Finished and intermediate products	149,178,356	134,975,607
Goods and work in progress	1,673,961	2,002,384
By-products and waste	253,909	301,483
Subtotal (Note 4.1.3)	151,106,226	137,279,474
Total	314,328,114	286,490,362

Inventories of finished and intermediate products - distribution by geographical area

Amounts in Euro	30-06-2024	%	31-12-2023	%
Portugal
BEKP pulp	31,914,905	21.39%	28,177,344	20.88%
UWF paper	44,441,452	29.79%	42,911,373	31.79%
Tissue paper	16,400,850	10.99%	13,888,808	10.29%
Other	1,133	0.00%	2,780	0.00%
	92,758,340	62.18%	84,980,305	62.96%
Rest of Europe
BEKP pulp	5,102,545	3.42%	3,033,932	2.25%
UWF paper	3,888,820	2.61%	4,357,667	3.23%
Tissue paper	19,324,264	12.95%	7,357,575	5.45%
	28,315,629	18.98%	14,749,174	10.93%
USA
UWF paper	26,714,627	17.91%	35,246,128	26.11%
	26,714,627	17.91%	35,246,128	26.11%
South Africa
UWF paper	1,389,760	0.93%	-	0.00%
	1,389,760	0.93%	-	0.00%
	149,178,356	100.00%	134,975,607	100.00%

Finished and intermediate products inventories include Euro 1,999,421 (31 December 2023: Euro 14,968,097) relating to inventories for which invoices have already been issued but whose control has not been transferred to Trade receivables.

As at 30 June 2024 and 2023, there are no inventories in which ownership is restricted and/or pledged as collateral for liabilities.

4.1.2. Cost of goods sold and materials consumed in the period

Amounts in Euro	30-06-2024	30-06-2023
Opening balance	(149,210,888)	141,167,998
Changes in the perimeter	(12,960,164)	(3,547,108)
Purchases	769,789,619	497,978,657
Inventory losses	(2,480,393)	(2,158,959)
Impairment losses	(898,826)	515,153
Closing balance	(163,221,888)	(165,536,906)
Cost of goods sold and materials consumed (Note 2.3)	441,017,459	468,418,834

Cost of goods sold and materials consumed - detail by product

Amounts in Euro	30-06-2024	30-06-2023
Wood / Biomass	222,726,965	214,075,755
Natural gas	17,781,920	31,246,777
Other fuels	10,618,122	19,858,056
Chemicals	89,040,527	113,282,942
BEKP pulp	10,224,787	12,905,112
Pine pulp	22,304,109	16,684,020
Paper (heavyweight)	2,393,555	2,277,537
Tissue paper	6,497,378	411,509
Consumables / Warehouse material	17,538,762	16,663,658
Packaging material	41,269,787	40,360,869
Other materials	621,549	652,598
	441,017,459	468,418,834

The cost of wood / biomass only relates to wood purchases to entities outside the Group, either domestic or foreign.

4.1.3. Change in production in the period

Amounts in Euro	30-06-2024	30-06-2023
Opening balance	(137,279,474)	(157,561,219)
Adjustments	(861,660)	396,363
Changes in the perimeter	(11,680,965)	(7,666,701)
Inventory losses	869,348	315,169
Impairment losses	2,930,790	4,954,133
Closing balance	151,106,226	186,947,825
Change in production (Note 2.3)	5,084,265	27,385,572

4.1.4. Movements in impairment losses in inventories

Amounts in Euro	30-06-2024	31-12-2023
Opening balance	(20,581,954)	(16,374,423)
Increases (Note 2.3)	(5,478,259)	(4,562,677)
Reversals (Note 2.2)	1,648,643	123,697
Impact on profit/ (loss) for the period	(3,829,616)	(4,438,980)
Perimeter entries	-	-
Charge-off	(1,030,580)	(121,597)
Balance as at 30 June	(25,442,150)	(20,935,000)
Remaining quarters		353,046
Closing balance		(20,581,954)

4.2. Receivables

	30-06-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Trade receivables	-	315,856,059	315,856,059	-	259,060,739	259,060,739
Receivables - related companies (Note 10.3)	-	102	102	-	102	102
State	-	55,012,894	55,012,894	-	57,026,840	57,026,840
Grants receivable	43,936,311	45,507,498	89,443,809	39,821,344	52,821,895	92,643,239
Department of Commerce (USA)	4,466,307	-	4,466,307	2,872,289	-	2,872,289
Accrued income	-	14,079,222	14,079,222	-	12,304,428	12,304,428
Deferred expenses	-	23,598,042	23,598,042	-	14,955,574	14,955,574
Derivative financial instruments (Note 8.1.1)	-	41,426,046	41,426,046	-	19,458,938	19,458,938
Other	3,315,055	15,274,064	18,589,120	1,705,873	9,112,457	10,818,330
	51,717,673	510,753,927	562,471,601	44,399,506	424,740,973	469,140,480

State

State is detailed as follows:

Amounts in Euro	30-06-2024	31-12-2023
Value Added Tax - recoverable	4,027,588	4,299,693
Value Added Tax - repayment requests	50,985,306	52,727,147
	55,012,894	57,026,840

As at 30 June 2024, the amount of repayment requests comprised the following, by month and by company:

Amounts in Euro	Apr/2024	May/2024	Jun/2024	Total

The Navigator Company, S.A.	3,486,213	24,524,786	20,414,719	48,425,718
Bosques do Atlântico, S.L.	-	-	2,309,588	2,309,588
Navigator Forest Portugal, S.A.	-	250,000	-	250,000
	3,486,213	24,774,786	22,724,307	50,985,306

Up to the date of issuing this report, Euro 47,733,152 of the outstanding amounts as at 30 June 2024, had already been received.

As at 31 December 2023, the amount of repayment requests comprised the following, by month and by Company:

Amounts in Euro	Nov/2023	Dec/2023	Total
The Navigator Company, S.A.	14,904,962	24,056,600	38,961,562
Navigator Tissue Rodão S.A.	1,500,000	-	1,500,000
Navigator Paper Figueira S.A.	9,000,000	-	9,000,000
Bosques do Atlântico, S.L.	-	3,265,585	3,265,585
	25,404,962	27,322,185	52,727,147

All these amounts were received during the first half of 2024.

Grants receivable

Grants receivable are detailed as follows:

			30-06-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
AICEP contracts	-	2,427,814	2,427,814	-	9,721,792	9,721,792
Recovery and Resilience Plan	42,788,583	37,890,497	80,679,080	37,890,496	37,890,496	75,780,992
Other	1,147,728	5,189,187	6,336,915	1,930,848	5,209,607	7,140,455
	43,936,311	45,507,498	89,443,809	39,821,344	52,821,895	92,643,239

Accrued Income and Deferred Expenses

Accrued income and deferred expenses are detailed as follows:

Amounts in Euro	30-06-2024	31-12-2023
Accrued income
Interest receivable	-	570,646
Energy sales	10,208,112	10,280,593
Other	3,871,110	1,453,189
	14,079,222	12,304,428
Deferred expenses
Insurance	4,045,625	91,023
Rentals	13,154,383	12,587,120
Other	6,398,034	2,277,431
	23,598,042	14,955,574
	37,677,264	27,260,002

Other receivables

Other current and non-current receivables consist of the following:

Other non-current receivables

Amounts in Euro	30-06-2024	31-12-2023
Labour Compensation Fund	789,980	769,982
Colateral	46,111	45,707
Pensions and other post-employment benefits	-	777,147
Other shareholdings (Almascience , Forestwise, Cecolab, Colab BIOREF)	69,800	69,800
Receivables - leasing	2,365,936	-
Other receivables	43,228	43,237
	3,315,055	1,705,873

Other current receivables

Amounts in Euro	30-06-2024	31-12-2023
Advances to personnel	332,376	114,765
Advances to suppliers	11,094,349	7,432,928
Other receivables	3,847,339	1,564,764
	15,274,064	9,112,457

4.3. Payables

Amounts in Euro	30-06-2024	31-12-2023
Trade payables - current account	213,918,655	209,023,299
Trade payables - invoices pending - logistics	13,340,904	12,915,733
Trade payables - invoices pending - other	78,915,415	60,955,309
Trade payables - fixed assets - current account	35,169,702	14,588,147
State	55,407,254	47,238,622
Related parties (Note 10.3)	1,447,209	1,542,197
Other payables - CO2 emission allowances	17,947,389	39,325,970
Other payables	32,103,466	21,675,082
Derivative financial instruments (Note 8.2)	6,029,512	5,691,818
Accrued expenses - payroll	39,178,672	39,402,872
Accrued expenses - interest payable	4,835,655	4,192,903
Wood suppliers bonus	3,834,455	3,266,604
Water resource fee	2,485,711	1,570,025
Rent liabilities	19,332,939	18,723,772
Other accrued expenses	17,493,490	9,874,933
Non-repayable grants	30,216,845	13,059,496
Payables - current	571,657,273	503,046,782
Non-repayable grants	119,299,761	112,549,349
Department of Commerce (USA) (Note 4.2)	-	2,121,441
Payables - non-current	119,299,761	114,670,790
	690,957,034	617,717,572

The increase in the balance of Trade payables – Property, plant and equipment is due to the greater volume of investments made in 2024, as mentioned in Note 3.3. and in the other trade payables items as a result of the change in perimeter (Note 1.2).

State - Details

Amounts in Euro	30-06-2024	31-12-2023
Personal income tax withhold (IRS)	4,506,432	2,388,230
Value Added Tax	45,868,000	41,208,469
Social Security contributions	4,213,981	2,721,253
Other	818,841	920,670
	55,407,254	47,238,622

As at 30 June 2024 and 31 December 2023, there were no overdue debts to the State.

Non-repayable grants - details

Amounts in Euro	30-06-2024	31-12-2023
Government grants	3,529,341	3,352,238
Grants - CO2 emission allowances (Note 3.2)	17,754,454	-
Other grants	8,933,050	9,707,258
Non-repayable grants - current	30,216,845	13,059,496
Government grants	119,299,761	112,549,349
Non-repayable grants - non-current	119,299,761	112,549,349
	149,516,606	125,608,845

As at 30 June 2024, CO² emission allowances relate to the effect of recognising allowances granted free of charge for 2024, the amount of Euro 17,754,454 being the proportional amount to be recognised in the second half of 2024.

5. Capital structure

5.1. Share Capital and treasury Shares

Navigator's Shareholders

The Navigator Company is a public company with its shares quoted on the Euronext Lisbon.

As at 30 June 2024, The Navigator Company, S.A.'s share capital of Euro 500,000,000 was fully subscribed and paid up and is represented by 711,183,069 shares without nominal value (31 December 2023: 711,183,069 shares).

As at 30 June 2024 and 31 December 2023, the Shareholders with qualified shareholdings in the Company's capital were as follows:

		30-06-2024		31-12-2023
Entity	No. of shares	%	No. of shares	%
Semapa, SGPS, S.A.	498,042,299	70.03%	497,617,299	69.97%
Floating shares	213,140,770	29.97%	213,565,770	30.03%
	711,183,069	100.0%	711,183,069	100.0%

In June 2024, Semapa, SGPS, S.A. acquired 425,000 shares representing 0.060% of Navigator's share capital.

As at 30 June 2024 and 31 December 2023, Navigator did not hold any treasury shares.

5.2. Earnings per share

	30-06-2024	30-06-2023
Profit attributable to Navigator's shareholders (Euro)	158,845,066	137,444,689
Total number of shares issued	711,183,069	711,183,069
Weighted average number of shares	711,183,069	711,183,069

Basic earnings per share (Euro)	0.223	0.193
Diluted earnings per share (Euro)	0.223	0.193

5.3. Dividends and reserves allocated

Dividends and reserves allocated in the period

	Amount	Dividends per
Amounts in Euro	approved	share (Euro)
Allocations in 2024
Distribution of retained earnings	149,995,621	0.211

Allocations in 2023
Distribution of retained earnings	199,984,679	0.281

At the Annual Shareholders' Meeting of 24 May 2024, The Navigator Company, S.A. decided to distribute dividends in the amount of Euro 149,995,621.

At the Annual Shareholders' Meeting of 17 May 2023, The Navigator Company, S.A. decided to distribute dividends in the amount of Euro 199,984,679.

5.4. Reserves and retained earnings

Reserves and retained earnings	674,863,813	540,321,995
Retained earnings	547,415,422	418,633,191
Other reserves	(5,960,836)	3,481,014
Legal reserve	100,000,000	100,000,000
Fair value reserves	25,878,698	12,898,767
Currency translation reserve	7,530,529	5,309,023
Amounts in Euro	30-06-2024	31-12-2023

Currency translation reserve - details

Amounts in Euro	30-06-2024	31-12-2023
Navigator North América (USD)	(3,182,307)	(6,699,934)
Navigator Paper Mexico (MXN)	(185,621)	(186,032)
Navigator Middle East Trading DMCC (AED)	(7,593)	(8,036)
Navigator Egypt (EGP)	5,501	16,092
Navigator Paper Company UK (GBP)	(259,514)	69,824
Navigator Eurasia (TYR)	799	799
Navigator Afrique du Nord (MAD)	395	395
Navigator Paper Poland (PLN)	(2,897)	(2,897)
Portucel Moçambique (MZM)	10,883,537	12,118,812
Navigator South Africa (ZAR)	(1,398)	-
Accrol Group Holdings plc (GBP)	279,627	-
	7,530,529	5,309,023

Fair value reserves - details

			30-06-2024	31-12-2023
Amounts in Euro	Gross amount	Tax	Net amount	Gross amount	Tax	Net amount
Interest rate risk hedging	15,641,518	(4,301,418)	11,340,101	16,015,134	(4,404,162)	11,610,972
Currency hedging and others	20,053,236	(5,514,639)	14,538,597	1,776,268	(488,473)	1,287,795
	35,694,754	(9,816,057)	25,878,698	17,791,402	(4,892,635)	12,898,767

Fair value reserves - movements

Amounts in Euro	30-06-2024	31-12-2023
Opening balance	12,898,767	33,997,828
Change in the fair value of derivative financial instruments (Note 8.2)	17,903,353	(29,102,154)
Deferred tax	(4,923,422)	8,003,093
Closing balance	25,878,698	12,898,767

The transfer from fair value reserves to profit or loss resulting from the settlement or maturity of hedging instruments is net of the following effects:

a) Transfer to profit or loss of: i) currency and pulp hedging instruments included in Paper and Pulp Sales with a negative impact on profit or loss of Euro 2,461,233 (Note 2.1); and ii) interest hedging instruments with a positive impact on financial profit or loss of Euro 5,716,133 on profit or loss (Note 5.9);
b) Changes in the fair value of hedging derivative financial instruments, primarily energy derivatives, amounted to Euro 21,158,253.

Other reserves – details

Amounts in Euro	30-06-2024	31-12-2023
Transfer of legal reserve surplus to free reserves	9,790,475	9,790,475
Free reserves arising from the share capital reduction not yet distributed	5,994	5,994
Adjustment to the appropriation of 2014 net profit (balance sheet bonus)	1,476	1,476
Incorporation of capital reserves	(6,316,931)	(6,316,931)
Put and Call Option	(9,441,850)	-
	(5,960,836)	3,481,014

In 2014, the Group signed agreements with IFC – Internacional Finance Corporation, a Subscription Agreement and a Put and Call option 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 reduction 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.

On 19 December 2023, an addendum was made to the agreements initially signed with the IFC - International Finance Corporation, extending the date of entry of this institution into the capital of the subsidiary Portucel Moçambique, S.A. from 31 December 2023 to 31 December 2028.

In the current period, the Group considered that the put option on the shares of the subsidiary Portucel Moçambique, S.A. to The Navigator Company, S.A. by IFC – International Finance Corporation was expected to be exercised and recorded the amount of Euro 9,441,850 relating to that transaction under Other reserves.

5.5. Non-controlling interests

Detail of non-controlling interests, by subsidiary

	%	30-06-2024		%	31-12-2023	30-06-2023
Amounts in Euro	held	Equity	Net profit	held	Equity	Net profit
Raiz - Instituto de Investigação da Floresta e Papel	3.0%	337,964	11,966	3.0%	327,018	22,837
Portucel Moçambique	-	-	i) -	9.98%	-	-
		337,964	11,966		327,018	22,837

Non-controlling interests are related to RAÍZ – Instituto de Investigação da Florestal e Papel, where the Group owns 97% of the capital and voting rights. The remaining 3% are owned by external associates.

In 2024, the Group recorded the exercise of the put option on Portucel Moçambique shares, representing 9.98% of the share capital, by IFC – International Finance Corporation, as stated in Note 5.4.

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.

Movements of non-controlling interests

Amounts in Euro	30-06-2024	31-12-2023
Opening balance	327,018	297,977
Net profit for the period	11,966	25,322
Other comprehensive income	(1,019)	3,719
Closing balance	337,964	327,018

5.6. Interest-bearing liabilities

			30-06-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Bond loans	435,000,000	72,500,000	507,500,000	397,500,000	22,500,000	420,000,000
Commercial paper	35,000,000	35,000,000	70,000,000	70,000,000	35,000,000	105,000,000
Bank loans	84,761,905	39,969,608	124,731,513	71,972,222	34,539,683	106,511,905
Charges with bond issuances	(2,870,780)	-	(2,870,780)	(2,614,750)	-	(2,614,750)
Repayable grants	19,827,120	7,219,439	27,046,560	23,227,869	7,219,439	30,447,308
Debt securities and bank debt	571,718,245	154,689,047	726,407,292	560,085,341	99,259,122	659,344,463
Average interest rate, considering charges for annual fees and hedging operations			2.2%			2.0%

In the first half of 2024, the development of financing was determined by two bond issues and the completion of a bank loan, all ESG-related, for a total amount of Euro 130 million, as well as the repayments of previously contracted debt.

These operations contributed to extending the average life of the Group's debt, as well as keeping the financing cost at low levels, in addition to having conditions adjusted to the fulfilment of sustainability commitments. The conditions of the bond loans are indexed to three ESG indicators already included in the Group's Sustainability Agenda and, in turn, aligned with the Sustainable Development Goals of the United Nations. The cost of the ESG bank loan is indexed to obtaining a sustainability score from a company recognized in the market.

The repayable incentives include incentives from AICEP - Agência para o Investimento e Comércio Externo de Portugal, as part of a number of research and development projects, which includes the incentive under the investment agreement entered into with Grupo Navigator Tissue Aveiro, S.A. subsidiary for the construction of the new tissue mill in Aveiro. This agreement comprises a financial incentive in the form of a repayable grant, up to a maximum amount of Euro 42,166,636, without interest payment, with a grace period of two years, with the last refund taking place in 2027.

In December 2023, the Navigator Group signed a new long-term loan agreement with the European Investment Bank (EIB) for Euro 115 million, maturing in 12 years. The loan will be disbursed in up to 3 instalments within 18 months of signing the contract. The loan will support the project to build and operate the high-efficiency recovery boiler at the Setúbal Industrial Complex, a key step in the decarbonisation roadmap. This green loan is part of the REPowerEU Plan, which aims to increase financing for green energy and support the autonomy and competitiveness of the European Union.

Interest-bearing liabilities - details

30-06-2024

		Outstanding
Amounts in Euro	Amount	amount	Maturity	Interest rate	Current	Non-current
Bond loans
Navigator 2022-2028 ESG	150,000,000	150,000,000		June 2028 Variable rate indexed to Euribor, with fixed rate swap	50,000,000	100,000,000
Navigator 2019-2026	50,000,000	50,000,000	janeiro 2026	Fixed rate	-	50,000,000
Navigator 2019-2025	20,000,000	20,000,000		março 2025 Variable rate indexed to Euribor, with fixed rate swap	20,000,000	-
Navigator 2021-2026	12,500,000	12,500,000	abril 2026	Variable rate indexed to Euribor	2,500,000	10,000,000
Navigator 2020-2026	75,000,000	75,000,000		dezembro 2026 Variable rate indexed to Euribor, with fixed rate swap	-	75,000,000
Navigator 2021-2026 ESG	100,000,000	100,000,000		agosto 2026 Variable rate indexed to Euribor, with fixed rate swap	-	100,000,000
Navigator 2024-2029 ESG	50,000,000	50,000,000		junho 2029 Variable rate indexed to Euribor, with fixed rate swap	-	50,000,000
Navigator 2024-2031 ESG	50,000,000	50,000,000		junho 2031 Variable rate indexed to Euribor, with fixed rate swap	-	50,000,000
Navigator SLB 2024-2031	50,000,000	-	outubro 2031	Variable rate indexed to Euribor	-	-
Navigator 2024-2031 SLB	100,000,000	-	maio 2031	Variable rate indexed to Euribor	-	-
Commissions	-	(2,870,780)			-	(2,870,780)
European Investment Bank (EIB)
EIB Loan - Energy	3,541,667	3,541,667	December 2024	Variable rate indexed to Euribor	3,541,667	-
EIB Loan - Cacia	11,111,111	11,111,111	May 2028	Fixed rate	2,777,778	8,333,333
EIB Loan - Figueira	28,571,428	28,571,428	February 2029	Fixed rate	5,714,286	22,857,142
EIB Loan - Biomass Boiler (ESG)	27,500,000	27,500,000	March 2031	Fixed rate	3,928,571	23,571,429
EIB Loan	115,000,000	-	up to 12 years after disbursement	Indexed rate to BEI cost of funds at disbursement	-	-
Commercial Paper Programme
Commercial Paper Programme 175M	70,000,000	70,000,000	February 2026	Fixed rate	35,000,000	35,000,000
Commercial Paper Programme 65M ESG	19,500,000	-	February 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Programme 75M	75,000,000	-	January 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Programme 50M	50,000,000	-	December 2025	Variable rate indexed to Euribor	-	-
Commercial Paper Programme 50M 2024-2030	50,000,000	-	47,636	Variable rate indexed to Euribor	-	-
Loans
Long-term loan (ESG)	55,000,000	30,000,000	March 2031	Variable rate indexed to Euribor	-	30,000,000
Accrol	24,007,306	24,007,306			24,007,306	-
Repayable grants
AICEP / Other	27,046,560	27,046,560	November 2027		7,219,439	19,827,121
Bank credit facilities
Short-term facility 20M	20,450,714	-			-	-
	1,234,228,786	726,407,292			154,689,047	571,718,245

31-12-2023

		Outstanding
Amounts in Euro	Amount	amount	Maturity	Interest rate	Current	Non-current
Bond loans
Navigator 2022-2028 ESG	150,000,000	150,000,000		June 2028 Variable rate indexed to Euribor, with fixed rate swap	-	150,000,000
Navigator 2019-2026	50,000,000	50,000,000	janeiro 2026	Fixed rate	-	50,000,000
Navigator 2019-2025	30,000,000	30,000,000		março 2025 Variable rate indexed to Euribor, with fixed rate swap	20,000,000	10,000,000
Navigator 2021-2026	15,000,000	15,000,000	abril 2026	Variable rate indexed to Euribor	2,500,000	12,500,000
Navigator 2020-2026	75,000,000	75,000,000		dezembro 2026 Variable rate indexed to Euribor, with fixed rate swap	-	75,000,000
Navigator 2021-2026 ESG	100,000,000	100,000,000		agosto 2026 Variable rate indexed to Euribor, with fixed rate swap	-	100,000,000
Commissions	-	(2,614,750)			-	(2,614,750)
European Investment Bank (EIB)
EIB Loan - Energy	10,625,000	7,083,333	December 2024	Variable rate indexed to Euribor	7,083,333	-
EIB Loan - Cacia	13,888,889	12,500,000	May 2028	Fixed rate	2,777,778	9,722,222
EIB Loan - Figueira	31,428,571	31,428,571	February 2029	Fixed rate	5,714,286	25,714,286
EIB Loan - Biomass Boiler	27,500,000	27,500,000	March 2031	Fixed rate	1,964,286	25,535,714
EIB Loan	115,000,000	-	up to 12 years after disbursement	Indexed rate to BEI cost of funds at disbursement	-	-
Commercial Paper Programme
Commercial Paper Programme 175M	105,000,000	105,000,000	February 2026	Fixed rate	35,000,000	70,000,000
Commercial Paper Programme 65M ESG	42,250,000	-	February 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Programme 75M	75,000,000	-	January 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Programme 50M	50,000,000	-	December 2025	Variable rate indexed to Euribor	-	-
Loans
Long-term loan	13,000,000	13,000,000	March 2026	Variable rate indexed to Euribor	2,000,000	11,000,000
Repayable grants
AICEP	30,447,309	30,447,309	November 2027	Fixed rate	7,219,439	23,227,870
Bank credit facilities
Short-term facility 20M	20,450,714	15,000,000			15,000,000	-
	954,590,483	659,344,463			99,259,122	560,085,341

As at 30 June 2024, the average cost of debt, considering interest rate, the annual fees and hedging operations, was 2.2% (31 December 2023: 2.0%).

In the current period, 56% of the debt issued by the Group was indexed to compliance with sustainability goals or associated with the financing of ESG assets (31 December 2023: 46%).

The repayment terms for the interest-bearing liabilities recorded as non-current are detailed as follows:

	Non-current loans

Amounts in Euro	30-06-2024	31-12-2023
Non-current
1 to 2 years	152,140,074	156,640,074
2 to 3 years	157,140,074	261,140,074
3 to 4 years	117,808,877	19,640,074
4 to 5 years	59,642,857	112,601,298
More than 5 years	87,857,143	12,678,571
	574,589,025	562,700,091
Fees	(2,870,780)	(2,614,750)
	571,718,245	560,085,341

As at 30 June 2024, the Group had contracted Commercial Paper Programs, contracted and undisbursed long-term financing, as well as available and undrawn credit facilities of Euro 504,950,714 (31 December 2023: Euro 292,631,270).

As at 30 June 2024 and 31 December 2023, the Group's interest-bearing net debt was as follows:

Amounts in Euro	30-06-2024	31-12-2023
Interest-bearing liabilities	726,407,292	659,344,463
Cash and cash equivalents (Note 5.8)	(61,943,324)	(169,464,967)
Interest-bearing net debt	664,463,968	489,879,496
Lease liabilities (Note 5.7)	115,775,558	69,996,821
Interest-bearing net debt with lease liabilities	780,239,526	559,876,317

Financial Covenants in force

Ratio	Definition	Loans	Limit
Interest coverage	EBITDA 12M / Annual net interest	Bank	>= 4,5 - 5,5
Indebtedness	Interest-bearing debt / EBITDA 12M	Bank	<= 4,5
Financial independence
Net Debt / EBITDA	(Interest-bearing debt - Cash) / EBTDA 12M	Bank Commercial Paper Bonds	<= 4,0 <= 4,0 - 5,0 <= 4,0

Based on the Financial statements presented in this report, these ratios were as follows as at 30 June 2024 and 31 December 2023:

Ratio	30-06-2024	31-12-2023
Interest coverage	38.63	36.03
Indebtedness	1.33	1.31
Net Debt / EBITDA	1.21	0.98

The amounts calculated in the table above exclude lease liabilities.

Considering the contracted limits, in 2024 and 2023, the Group is in compliance with the covenants negotiated. As at 30 June 2024 and 31 December 2023, the minimum safety margin for these covenants is mostly above 80%.

Movements in liabilities of the Group's financing activities

Amounts in Euro	30-06-2024	31-12-2023
Balance as at 1 January	659,344,463	725,301,722
Payment of loans	(102,228,743)	(107,276,122)
Receipts from interest-bearing liabilities	154,007,305	15,000,000
Repayable grants	(3,400,749)	(7,219,438)
Changes in borrowing costs	(256,030)	865,333
Changes in the perimeter	18,941,046	32,672,968
Changes in interest-bearing debt	67,062,829	(65,957,259)
Gross interest-bearing debt	726,407,292	659,344,463

The receipt of Euro 130,000,000 corresponds to the issue of two ESG bond loans in the amount of Euro 100,000,000 and the payment of a bank loan with ESG features in the amount of Euro 30,000,000.

5.7. Lease liabilities

Lease liabilities – Nature

Amounts in Euro		30-06-2024			31-12-2023
	Non-current	Current	Total	Non-current	Current	Total
Forestry lands	56,704,510	3,372,268	60,076,778	55,314,521	3,183,910	58,498,431
Buildings	2,880,857	985,869	3,866,726	1,374,377	540,140	1,914,517
Vehicles	4,864,082	2,047,110	6,911,192	3,815,266	1,580,224	5,395,490
Software licenses	113,369	61,126	174,495	-	94,312	94,312
Other lease liabilities	35,076,676	9,669,691	44,746,367	2,344,597	1,749,474	4,094,071
	99,639,494	16,136,064	115,775,558	62,848,761	7,148,060	69,996,821

Lease liabilities – Movements

Amounts in Euro	2024	2023
Balance as at 1 January	69,996,821	61,641,049
Change in the perimeter	45,660,883	-
Contract amortisation	(7,421,304)	(10,694,178)
New contracts	5,704,326	16,003,677
Interest expense	1,624,788	2,517,826
Other changes	210,044	528,447
Total changes in related liabilities	45,778,737	8,355,772
Balance as at 31 December	115,775,558	69,996,821

Lease liabilities – Future liabilities

		30-06-2024		31-12-2023
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	10,782,981	5,353,083	16,136,064	4,716,806	2,431,254	7,148,060
1 to 2 years	9,024,626	4,887,403	13,912,029	3,897,834	2,229,000	6,126,834
2 to 3 years	8,548,071	4,445,544	12,993,615	3,567,730	2,044,103	5,611,833
3 to 4 years	6,542,996	4,042,175	10,585,171	2,949,250	1,867,883	4,817,133
4 to 5 years	5,231,885	3,677,615	8,909,500	2,431,219	1,711,124	4,142,343
More than 5 years	39,925,988	13,313,191	53,239,179	30,952,202	11,198,416	42,150,618
Present value of liabilities	80,056,547	35,719,011	115,775,558	48,515,041	21,481,780	69,996,821

For the periods ended 30 June 2024 and 31 December 2023, there were no changes in the liability arising from financing activities, including changes arising from cash flows and/or other changes in lease liabilities.

5.8. Cash and cash equivalents

Amounts in Euro	30-06-2024	31-12-2023

Cash	40,599	42,100
Short-term bank deposits	61,902,725	34,422,867
Other short-term investments	-	135,000,000
	61,943,324	169,464,967

In 31 December 2023, Other short-terms investments included Euro 135,000,000 of amounts invested by Navigator in a portfolio of short-term, highly liquid deposits and issuers with adequate ratings, which were drawn down in the current period.

As at 30 June 2024 and 31 December 2023, there are no significant balances of cash and cash equivalents that are subject to restrictions on use by the Group.

5.9. Net financial results

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023

Interest paid on debt securities and bank debt	(12,769,950)	(10,506,170)
Commissions on loans and expenses with the opening of credit facilities	(1,354,956)	(1,303,956)
Interest paid using the effective interest method	(14,124,906)	(11,810,126)
Interest paid on lease liabilities	(1,624,788)	(1,196,127)
Financial expenses related to the Group's capital structure	(15,749,694)	(13,006,253)
Favourable / (Unfavourable) exchange rate differences	(767,641)	(452,527)
Gains / (Losses) on financial instruments - trading derivatives	(1,261,201)	(793,498)
Losses on compensatory interest	(238,640)	(363,674)
Other financial expenses and losses	(991,695)	(434,444)
Financial expenses and losses	(19,008,870)	(15,050,396)

Interest earned on financial assets at amortised cost	2,842,496	2,892,274
Gains on financial instruments - hedging derivatives (Note 8.1)	5,716,133	3,672,770
Financial income and gains	8,558,629	6,565,044

Financial profit/ (loss)	(10,450,241)	(8,485,352)

Financial losses amounted to Euro 10,450,241 (30 June 2023: Euro 8,485,352). The increase in interest paid on debt securities, bank debt and lease liabilities contributed to this increase, as well as the increase in net losses on trading derivatives, which were not offset by the increase in gains on hedging derivatives.

6. Income tax

6.1. Income tax for the period

6.1.1. Income tax recognised in the consolidated income statement

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023
Current tax	64,412,670	51,485,888
Change in uncertain tax positions in the period	(1,323,858)	(6,400,512)
Deferred tax (Note 6.2)	(6,791,315)	(3,394,027)
	56,297,497	41,691,349

As at 30 June 2024, current tax includes Euro 58,242,140 (30 June 2023: Euro 47,861,847) regarding the liability created under the aggregated income tax regime of The Navigator Company, S.A. in Portugal.

As at 30 June 2024 and 2023, the caption Change in 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 Authorities 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.

Nominal tax rate

In the periods presented, the Group considers a nominal tax rate in Portugal of 27.5%, resulting from the tax legislation as follows:

	30-06-2024	30-06-2023
Portugal
Nominal income tax rate	21.0%	21.0%
Municipal surcharge	1.5%	1.5%
	22.5%	22.5%
State surcharge - on the share of taxable profits between Euro 1,500,000 and Euro 7,500,000	3.0%	3.0%
State surcharge - on the share of taxable profits between Euro 7,500,000 and Euro 35,000,000	5.0%	5.0%
State surcharge - on the share of taxable profits above Euro 35,000,000	9.0%	9.0%

Reconciliation of the effective income tax rate for the period

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023
Profit before income tax	215,154,529	179,158,874

Expected tax at nominal rate (21%)	45,182,451	37,623,364
Municipal surcharge (2024: 1.47% ; 2023: 1.63%)	3,167,764	2,914,213
State surcharge (2024: 4.12% ; 2023: 4.66%)	8,863,013	8,356,226
Income tax resulting from the applicable tax rate	57,213,228	48,893,803
Nominal tax rate for the period	26.6%	27.3%
Differences (a)	(294,431)	(264,013)
Excess of income tax estimate	7,264	(7,157,543)
Tax benefits	(850,622)	-
Autonomous taxation	222,058	219,102
	56,297,497	41,691,349
Effective tax rate	26.2%	23.3%
(a) This amount concerns mainly:
	30-06-2024	30-06-2023
Capital gains/ (losses) for tax purposes	1,915,642	(1,157)
Capital gains/ (losses) for accounting purposes	(2,091,414)	770
Taxable provisions and impairment	(19,250)	2,755,856
Tax benefits	(2,145,769)	(1,271,247)
Post-employment benefits	6,506	65,755
Other	1,263,626	(2,510,024)
	(1,070,659)	(960,047)
Tax effect (27.5%)	(294,431)	(264,013)

6.1.2. Income tax recognised in the consolidated statement of financial position

Amounts in Euro	30-06-2024	31-12-2023
Assets
Amounts pending repayment	24,605,327	18,385,534
	24,605,327	18,385,534
Liabilities
Corporate Income Tax - IRC	71,778,465	4,727,342
Additional tax liabilities (IRC)	16,972,886	18,100,389
	88,751,351	22,827,731

Detail of Corporate Income Tax - IRC (net)

Amounts in Euro	30-06-2024	31-12-2023
Income tax for the period	64,412,670	83,576,447
Payments on account, special and additional payments on account	(2,519,374)	(75,943,340)
Withholding tax recoverable	(1,020,352)	(1,798,031)
Corporation income tax payable/ (repaid) from previous years	12,199,911	-
Other payables/ (receivables)	(1,294,390)	(1,107,734)
	71,778,465	4,727,342

The amounts of corporate income tax paid in the period are detailed as follows:

Amounts in Euro	30-06-2024	30-06-2023
Payment/ (Repayment) of IRC for the previous period	-	84,783,823
Payments on account, special and additional payments on account	2,519,374	1,741,026
Withholding tax	1,020,352	1,030,675
Repayments of tax proceedings decided in favour of the group	-	(77,333)
Payments of additional tax liabilities	-	32,740
Other income tax payments/ (repayments)	-	(829)
Income tax paid/ (received)	3,539,726	87,510,102

Amounts pending repayment

Amounts in Euro	30-06-2024	31-12-2023
IRC (RETGS) 2005 - Proceeding 1259/09.3BESNT	13,886,728	13,886,728
IRC (RETGS) 2018 - Proceeding CAAD 103/2023	1,749,389	1,749,389
RFAI 2010 to 2012 - Compensatory interest	494,856	494,856
IRC 2016 - Navigator Tissue Rodão - Proceeding CAAD 575/2020	861,866	861,866
IRC 2017 - Proceeding CAAD 756/2022	1,379,125	1,379,125
IRC 2015-I - Proceeding 21/22.2BALSB	6,219,793	-
Other	13,570	13,570
	24,605,327	18,385,534

The movements in the period are detailed as follows:

Amounts in Euro	30-06-2024	31-12-2023
Balance at the beginning of the period	18,385,534	16,216,543
Increases	6,219,793	3,142,084
Payments / (receipts)	-	(335,564)
Reversals	-	(637,529)
	24,605,327	18,385,534

Uncertain tax positions- Liabilities

Amounts in Euro	30-06-2024	31-12-2023
Balance at the beginning of the period	18,100,389	14,762,361
Increases	5,323,623	6,276,135
Payments / (receipts)	-	222,634
Transfer	(6,451,126)	-
Reversals	-	(3,160,741)
Changes in the period	(1,127,503)	3,338,028
	16,972,886	18,100,389

Taxes paid in litigation

As at 30 June 2024 and 31 December 2023, 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	30-06-2024	31-12-2023
Aggregate Corporate Income Tax 2005 (Note 9.3) - Proceeding 88/13.4BEALM	-	10,394,386
Aggregate Corporate Income Tax 2006 - Proceeding 909/11.6 BEALM	8,150,146	8,150,146
Aggregate Corporate Income Tax 2018 - Proceeding 103/2023 and 648/23.5BEALM	11,138,180	11,138,180
2015 Corporate Income Tax - Navigator Tissue Ródão, S.A. - Proceeding 235/23.8BECTB	7,586,361	7,586,361
State Surcharge 2015 II - Proceeding 453/23.9BEALM	6,970,541	6,970,541
State Surcharge 2016 - Proceeding 457/21.6BEALM	3,761,397	3,761,397
State Surcharge 2017 - Proceeding 456/21.8BEALM	8,462,724	8,462,724
State Surcharge 2018 - Proceeding 707/21.9 BEALM	12,223,705	12,223,705
State Surcharge 2019 - Proceeding 557/23.8BEALM	2,466,974	2,466,974
State Surcharge 2020 - Proceeding 26/24.9BEALM	5,183,000	5,183,000
State Surcharge 2021 - Administrative Appeal	6,154,906	-
	72,097,934	76,337,414

6.2. Deferred taxes

Movements in deferred taxes

				Income Statement		Exchange
		Changes in the				rate
Amounts in Euro	1 January 2024	perimeter	Increases	Decreases	Equity	adjustment	30 June 2024
Temporary differences originating deferred tax assets
Taxed provisions	16,674,924	-	2,078,758	(270,839)	-	-	18,482,843
Adjustment of property, plant and equipment	32,384,050	-	-	(8,064,041)	-	-	24,320,009
Deferred accounting gains on intra-group transactions	11,750,244	-	10,898,624	-	-	-	22,648,868
Appreciation of biological assets	24,904,297	-	-	(163,957)	-		24,740,340
Conventional capital remuneration	280,000	-	-	-	-	-	280,000
Tax losses	52,846	56,583,278	9,192,532	(8,615,146)	-	298,818	57,512,328
Lease liabilities relating to right-of-use assets	-	-	71,457,852	-	-	-	71,457,852
	86,046,361	56,583,278	93,627,766	(17,113,983)	-	298,818	219,442,240
Temporary differences originating deferred tax liabilities
Pensions and other post-employment benefits	(795,430)	-	(4,581)	15,267	(345,911)	-	(1,130,655)
Financial instruments	(18,072,331)	-	-	-	(17,903,353)	-	(35,975,684)
Appreciation of biological assets	(3,519,844)	-	-	-	-	-	(3,519,844)
Adjustment of property, plant and equipment	(286,279,805)	(56,404,249)	(2,199,792)	13,654,648	-	(269,165)	(331,498,363)
Fair value calculated in business combinations	(39,840,800)	-	-	3,231,081	-		(36,609,719)
Government grants	(3,714,470)	-	-	190,189	387,484	-	(3,136,797)
Right-of-use assets			(65,960,788)				(65,960,788)
Other temporary differences		(235,447)				(1,230)	(236,677)
	(352,222,680)	(56,639,696)	(68,165,161)		17,091,185 (17,861,780)	(270,395)	(478,068,527)
Deferred tax assets	23,653,501	14,145,819	25,515,248	(4,490,967)	-	74,704	58,898,305
Deferred tax liabilities	(95,856,013)	(14,159,924)	(18,742,060)	4,509,094	(4,921,102)	(67,598)	(129,237,603)

		Income Statement Changes in the
Amounts in Euro	1 January 2023	perimeter	Increases	Decreases	Equity	31 December 2023
Temporary differences originating deferred tax assets
Taxed provisions	13,913,990	-	3,358,291	(597,357)	-	16,674,924
Adjustment of property, plant and equipment	43,767,507	317,077	8,579,320	(20,279,854)	-	32,384,050
Deferred accounting gains on intra-group transactions	26,228,453	-	1,561,458	(16,039,667)	-	11,750,244
Appreciation of biological assets	14,456,082	-	10,448,215	-	-	24,904,297
Conventional capital remuneration	560,000	-	-	(280,000)	-	280,000
Tax losses	-	52,846	-	-	-	52,846
	98,926,032	369,923	23,947,284	(37,196,878)	-	86,046,361
Temporary differences originating deferred tax liabilities
Pensions and other post-employment benefits	(358,483)	-	(34,476)	17,172	(419,643)	(795,430)
Financial instruments	(47,174,485)	-	-	-	29,102,154	(18,072,331)
Appreciation of biological assets	(5,403,744)	-	-	1,883,900	-	(3,519,844)
Adjustment of property, plant and equipment	(300,707,813)	(3,606)	(4,124,908)	18,556,522	-	(286,279,805)
Fair value calculated in business combinations	-	(39,840,800)	-	-	-	(39,840,800)
Government grants	(3,862,494)	(646,777)	-	462,851	331,950	(3,714,470)
	(357,507,019)	(40,491,183)	(4,159,384)	20,920,445	29,014,461	(352,222,680)
Deferred tax assets	27,204,659		6,585,503	(10,229,142)	-	23,653,501
Deferred tax liabilities	(98,314,430)	(10,122,796)	(1,143,770)	5,753,122	7,971,861	(95,856,013)

As at 30 June 2024 and 31 December 2023, the rate of 27.50% was used in the measurement of deferred taxes.

7. Payroll

7.1. Payroll costs

	6 months	6 months
Amounts in Euro	30-06-2024	30-06-2023
Remuneration of Corporate Bodies - fixed (Note 7.3)	1,666,451	1,847,118
Remuneration of Corporate Bodies - variable	1,623,638	748,477
Other remuneration	73,966,762	68,618,036
Social Security contributions	14,240,110	13,362,422
Post-employment benefits (Note 7.2.4)	750,099	750,349
Other payroll costs	9,273,411	3,864,247
Payroll costs	101,520,471	89,190,649

Navigator's good performance in the first half of the year made it possible to reinforce the increase in remuneration, employee bonuses and the productivity bonus. It should be noted that, by resolution of the Shareholders' Meeting of 17 May 2023, the remuneration of the Corporate Bodies will now be paid 12 times a year instead of 14.

Overall, the increase in payroll costs is due to the acquisition of Accrol, which was incorporated into the Group in May 2024, with an impact as at 30 June of Euro 3,745,126, and to the costs with the rejuvenation programme.

Number of employees by segment at the end of the period

	30-06-2024	31-12-2023	Variation 24/23

Market pulp	281	272	9
UWF	1,814	1,808	6
Tissue	1,040	586	454
Corporate	805	801	4
	3,940	3,467	473

The headcount includes 443 new employees assigned to the tissue business in the UK as a result of the acquisition of the Accrol Group.

7.2. Employee benefits

7.2.1. Introduction

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 (The Navigator Company) or who have chosen to maintain a Safeguard Clause, the latter following the conversion of their plan into a Defined Contribution Plan (The Navigator Company). 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.

B. Pension Plan – Defined contribution

As at 30 June 2024, three Defined Contribution plans were in force covering 3,238 employees (2023: 3,200 Employees) (Note 7.2.3).

7.2.2. Defined benefit plan

Net Liabilities

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:

		30-06-2024	31-12-2023
	No. of		No. of
Amounts in Euro	Beneficiaries	Amount	Beneficiaries	Amount
Past service liabilities
Active employees, including individual accounts	311	44,872,333	352	50,509,668
Alumni	130	21,098,324	112	17,469,425
Retired employees	640	94,871,311	622	90,277,782
Market value of pension funds		(160,437,240)		(159,034,022)
Total net liabilities (Note 4.2)	1,081	404,728	1,086	(777,147)

Historical information - last five years

Amounts in Euro	31-12-2020	31-12-2021	31-12-2022		31-12-2023 30-06-2024
Present value of liabilities	191,253,527	191,002,589	157,269,646	158,256,875	160,841,968
Fair value of assets and reserves	178,691,062	185,327,671	154,433,916	159,034,022	160,437,240
Surplus/ (deficit)	(12,562,465)	(5,674,918)	(2,835,730)	777,147	(404,728)

In 2022, the value of liabilities and the fair value of assets and the reserve account fell significantly as a result:

a) The new Standard No. 8/202-R came into force, replacing No. 21/96-R of the Portuguese Insurance and Pension Funds Supervisory Authority (Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF)), which established more conservative assumptions and changed the financing method from current unit credit to project unit credit;
b) Increase in the discount rate from 1.25% to 3.5%;
c) Increase in the wage growth rate from 1% to 2%;
d) Increase in the growth rate with pensions from 0.75% / 1% to 1.5% / 2%, depending on the plan.

Evolution of defined benefit plan liabilities

						30-06-2024
Amounts in Euro	Opening balance	Current service cost	Interest expense	Actuarial deviations	Payments	performed Closing balance
Pensions with autonomous fund	158,256,875	10,051	2,712,551	3,126,331	(3,263,840)	160,841,968
	158,256,875	10,051	2,712,551	3,126,331	(3,263,840)	160,841,968

						31-12-2023
Amounts in Euro	Opening balance	Current service cost	Interest expense	Actuarial deviations	Payments	performed Closing balance
Pensions with autonomous fund	157,269,646	18,878	5,398,760	2,467,179	(6,897,588)	158,256,875
	157,269,646	18,878	5,398,760	2,467,179	(6,897,588)	158,256,875

The average expected duration of the defined benefit liabilities is 13 years (2023: 13 years).

Funds

Funds allocated to the defined benefit pension plans - evolution

Amounts in Euro	30-06-2024	31-12-2023
Opening balance	159,034,022	154,433,916

Expected income for the period	2,720,677	5,291,759
Remeasurement	1,946,381	6,205,945
Pensions paid	(3,263,840)	(6,897,598)
Closing balance	160,437,240	159,034,022

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:

Amounts in Euro	30-06-2024	31-12-2023
Defined benefits and Conta 1 :
AGEAS - Pensões	107,817	(17,192)
Schroders	55,770,456	64,806,718
Santander AM	56,321,271	65,605,927
Conta 1 - Julius Baer	48,237,696	28,638,569
Total Defined Benefits and Conta 1	160,437,240	159,034,022

Funds allocated to defined benefit plans - composition of assets

Amounts in Euro	30-06-2024	%	31-12-2023	%
Securities listed in the market
Bonds	96,821,232	60.35%	96,701,081	60.81%
Shares	41,985,618	26.17%	38,457,610	24.18%
Public debt	16,366,890	10.20%	17,419,598	10.95%
Liquidity	1,248,396	0.78%	2,206,803	1.39%
Other short-term investments	4,015,104	2.50%	4,248,930	2.67%
	160,437,240	100.00%	159,034,022	100.00%

The assets of the pension fund do not include any assets of the Group.

7.2.3. Defined contributions plan

As at 30 June 2024 and 31 December 2023, two defined contribution plans were in force on behalf of employees.

The assets of the pension fund that finance the defined contribution plans are under the management of the BMO, as detailed below:

	No. of			No. of
Amounts in Euro	Beneficiaries	Profitability %	30-06-2024		Beneficiaries Profitability %	31-12-2023
Definied Contribution (Ageas Pensões):
Defensive sub-fund	137	0.20%	6,882,717	122	7.17%	6,262,270
Conservative sub-fund	416	1.81%	15,528,084	392	8.50%	15,291,344
Dynamic sub-fund	769	5.01%	15,268,560	737	10.90%	15,713,487
Aggressive sub-fund	1,916	7.85%	6,593,553	1,949	13.30%	6,398,935
Total defined contribution	3,238		44,272,914	3,200		43,666,036

7.2.4. Expenses incurred with post-employment benefit plans

The effect in the income statement for the periods ended 30 June 2024 and 2023 was as follows:

				30-06-2024				30-06-2023
Amounts in Euro	Current service cost	Net interest	Defined contribution - Contributions for the period	Impact on net profit (Note 7.1)	Current service cost	Net interest	Defined contribution - Contributions for the period	Impact on net profit (Note 7.1)
Pensions with autonomous fund	10,051	(8,126)	-	1,925	9,439	53,500		62,939
Defined contributions plans	-	-	748,174	748,174	-	-	687,410	687,410
	10,051	(8,126)	748,174	750,099	9,439	53,500	687,410	750,349

7.2.5. Remeasurement recognised directly in other comprehensive income

								30-06-2024
			Remeasurement
Amounts in Euro	Changes in assumptions	Demographic assumptions	Financial assumptions	Experience assumptions	Return on plan assets	Gross amount	Deferred tax	Impact on Equity
Pensions with autonomous fund	-	-	-	(3,126,331)	1,946,381	(1,179,960)	(95,126)	(1,275,086)
	-	-	-	(3,126,331)	1,946,381	(1,179,960)	(95,126)	(1,275,086)
			Remeasurement	-	-	-	-	30-06-2023
Amounts in Euro	Changes in assumptions	Demographic assumptions	Financial assumptions	Experience assumptions	Return on plan assets	Gross amount	Deferred tax	Impact on Equity
Pensions with autonomous fund	-	-	(3,992,043)	(202,563)	2,303,327	(1,891,279)	(13,337)	(1,904,616)
	-	-	(3,992,043)	(202,563)	2,303,327	(1,891,279)	(13,337)	(1,904,616)

The re-measurements referred to above result from experience gains and losses, both in financial and demographic terms.

Estimates and judgements

Actuarial assumptions

	30-06-2024	31-12-2023
Social Security Benefits Formula	Decree Law no. 187/2007 of 10 May
Disability table	EKV 80	EKV 80
Mortality table	TV 88/90	TV 88/90
Discount rate	3.50%	3.50%
Wage growth rate	2.00%	2.00%
Return rate on plan assets	3.50%	3.50%
Pensions growth rate	1.5% or 2.00%	1.5% or 2.00%

Sensitivity analysis

Amounts in Euro	30-06-2024	31-12-2023
0.5% decrease in the discount rate
Increase in liabilities assumed	10,427,554	10,348,867
0.5% increase in the discount rate
Decrease in liabilities assumed	(9,246,327)	(9,316,819)
0.5% decrease in the wage growth rate
Decrease in liabilities assumed	(1,515,776)	(1,886,275)
0.5% increase in the wage growth rate
Increase in liabilities assumed	1,829,765	1,976,098
0.5% decrease in the pensions growth rate
Decrease in liabilities assumed	(7,248,909)	(7,646,125)
0.5% increase in the pensions growth rate
Increase in liabilities assumed	8,350,080	8,056,199

7.3. Remuneration of corporate bodies

Amounts in Euro	30-06-2024	30-06-2023
Navigator Corporate Bodies
Board of Directors	1,470,222	1,516,949
Supervisory Board	38,660	26,999
Environment Board	31,000	34,000
General Meeting	-	4,000
	1,539,882	1,581,949
Corporate Bodies of other Group companies	126,569	265,169
Total (Note 7.1)	1,666,451	1,847,118

8. Financial instruments

8.1. Financial risk management

The Company, at the level of the Navigator Group, has a risk-management programme, which focuses its analysis on the financial markets with a view to mitigate the potential adverse effects on its financial performance. Risk management is undertaken by the Group's Financial Management in accordance with the policies approved by the Board of Directors and monitored by the Risks and Control Commission.

The Company adopts a proactive approach to risk management, as a way to mitigate the potential adverse effects associated with those risks, namely the exchange rate risk and interest rate risk.

8.1.1. Currency risk

									30-06-2024
Amounts in Euro	US	dollar Sterling pound	Polish zloti	Turkish lira	Swiss franc	Mozambican metical	Morrocan dirham	South African rand	Total (Euro)
Amounts in foreign currency
Cash and cash equivalents	5,897,428	321,645	24,212	68,989	31,477	38,671,189	591,724	40,922	6,552,100
Receivables	121,408,478	21,721,140	10,853,907	124,322	1,752,224	16,154,123			143,653,769
Total financial assets	127,305,906	22,042,785	10,878,119	193,311	1,783,701	54,825,312	591,724	40,922	150,205,869
Loans	-	-	-	-	-	-	-	-
Payables	-	(633,227)	(21,428)	(57,082)	(18,401)		(173,728)		(790,143)
Total financial liabilities	-	(633,227)	(21,428)	(57,082)	(18,401)	-	(173,728)	-	(790,143)
Financial net position in foreign currency	127,305,906	21,409,558	10,856,691	136,229	1,765,300	54,825,312	417,996	40,922	149,415,726
Financial net position in Euro	118,921,911	25,295,444	2,519,538	3,872	1,832,365	801,305	39,191	2,099	149,415,726
Impact of + 10% change in all exchange rates on profit and loss for the period									13,583,248
Impact of - 10% change in all exchange rates on profit and loss for the period									(16,601,747)

Exposure of financial assets and liabilities to exchange rate risk and sensitivity analysis

									31-12-2023
Amounts in Euro	US dollar	Sterling pound	Polish zloti	Turkish lira	Swiss franc	Mozambican metical	Morrocan dirham	South African rand	Total ( Euro)
Amounts in foreign currency
Cash and cash equivalents	3,754,684	863,437	259,824	525,311	2,731	24,591,876	418,145	40,922	4,858,597
Receivables	145,638,716	21,697,447	14,349,866	124,322	1,572,289	16,154,123			162,002,359
Total financial assets	149,393,400	22,560,884	14,609,690	649,633	1,575,020	40,745,999	418,145	40,922	166,860,956
Loans	-	-	-	-	-	-	-	-	-
Payables	(12,831,555)	(64,414)	(25,273)	(5,124,236)	(84,250)	-	(134,963)		(11,952,451)
Total financial liabilities	(12,831,555)	(64,414)	(25,273)	(5,124,236)	(84,250)	-	(134,963)	-	(11,952,451)
Financial net position in foreign currency	136,561,845	22,496,470	14,584,417	(4,474,603)	1,490,770	40,745,999	283,181	40,922	154,908,505
Financial net position in Euro	123,585,380	25,884,789	3,360,852	(137,035)	1,609,903	576,730	25,874	2,011	154,908,505
Impact of + 10% change in all exchange rates on profit and loss for the period									14,082,591
Impact of - 10% change in all exchange rates on profit and loss for the period									(17,212,056)

In this Note, the Group discloses the exposure of financial assets and liabilities to foreign exchange rate risk, as well as the respective sensitivity analysis. There are currencies in which the Group has carried out transactions but in which, at the balance sheet date, it does not have relevant foreign exchange exposures, which is why the exchange rates disclosed below are more numerous than the currencies presented in this note.

Exchange rates used

			Appreciation /
	30-06-2024	31-12-2023	(Depreciation)
GBP (Sterling pound)
Average exchange rate for the period	0.8546	0.8698	1.75%
Closing exchange rate for the period	0.8464	0.8691	2.61%

USD (American dollar)	1.0813	1.0813
Average exchange rate for the period			0.00%
Closing exchange rate for the period	1.0705	1.1050	3.12%
PLN (Polish zloti)
Average exchange rate for the period	4.3169	4.5420	4.96%
Closing exchange rate for the period	4.3090	4.3395	0.70%
SEK (Swedish krona)
Average exchange rate for the period	11.3914	11.4788	0.76%
Closing exchange rate for the period	11.3595	11.0960	-2.37%
CZK (Czech krona)
Average exchange rate for the period	25.0149	24.0043	-4.21%
Closing exchange rate for the period	25.0250	24.7240	-1.22%
CHF (Swiss franc)
Average exchange rate for the period	0.9615	0.9718	1.06%
Closing exchange rate for the period	0.9634	0.9260	-4.04%
DKK (Danish krona)
Average exchange rate for the period	7.4580	7.4509	-0.10%
Closing exchange rate for the period	7.4575	7.4529	-0.06%
HUF (Hungarian forint)
Average exchange rate for the period	389.7571	381.8527	-2.07%
Closing exchange rate for the period	395.1000	382.8000	-3.21%
AUD (Australian dollar)
Average exchange rate for the period	1.6422	1.6288	-0.82%
Closing exchange rate for the period	1.6079	1.6263	1.13%
MZN (Mozambican metical)
Average exchange rate for the period	69.1118	69.1060	-0.01%
Closing exchange rate for the period	68.4200	70.6500	3.16%
MAD (Moroccan dirham)
Average exchange rate for the period	10.8361	10.9552	1.09%
Closing exchange rate for the period	10.6655	10.9445	2.55%
NOK (Norway krona)
Average exchange rate for the period	11.4926	11.4248	-0.59%
Closing exchange rate for the period	11.3965	11.2405	-1.39%
MXN (Mexican peso)
Average exchange rate for the period	18.5089	19.1830	3.51%
Closing exchange rate for the period	19.5654	18.7231	-4.50%
AED (Dirham)
Average exchange rate for the period	3.9709	3.9710	0.00%
Closing exchange rate for the period	3.9314	4.0581	3.12%
CAD (Canadian dollar)
Average exchange rate for the period	1.4685	1.4595	-0.62%
Closing exchange rate for the period	1.4670	1.4642	-0.19%
ZAR (South African rand)
	20.2476	19.9551	-1.47%
Average exchange rate for the period	19.4970	20.3477
Closing exchange rate for the period			4.18%
BRL (Brazilian real)
Average exchange rate for the period	5.4922	5.4010	-1.69%
Closing exchange rate for the period	5.8915	5.3618	-9.88%
EGP (Egyptian pound)
Average exchange rate for the period	45.1461	33.1117	-36.34%
Closing exchange rate for the period	51.3359	34.2710	-49.79%
TRY (Turkish lira)
Average exchange rate for the period	34.2364	25.7597	-32.91%
Closing exchange rate for the period	35.1868	32.6531	-7.76%

8.1.2. Interest rate risk

Exposure to interest rate risk

As at 30 June 2024, approximately 7% (31 December 2023: 5%) of the Navigator Group's financial liabilities was indexed to short-term reference interest rates, revised in periods below one year (usually 6-month rates for long-term debt), plus duly negotiated risk spreads. Hence, changes in interest rates can impact the Group's earnings.

The Group has favoured the contracting of fixed rate debt and has derivative financial instruments to cover its interest rate risk, namely interest-rate swaps, with the purpose of fixing the interest rate on the Navigator Group's borrowings within certain limits.

As at 30 June 2024 and 31 December 2023, the detail of the financial assets and liabilities with interest rate exposure, considering the maturity or the next interest-fixing date is as follows:

						30-06-2024
Amounts in Euro	Up to 1 month	1-3 months	3-12 months	1-5 years More than 5 years		Total
30 June 2024
Assets
Current
Cash and cash equivalents	61,943,324	-	-	-	-	61,943,324
Total financial assets	61,943,324	-	-	-	-	61,943,324
Liabilities
Non-current
Interest-bearing liabilities	-	-	-	464,033,981	87,857,143	551,891,124
Lease liabilities				-	99,639,494	99,639,494
Repayable grants	-	-	-	19,827,121	-	19,827,121
Current
Interest-bearing liabilities	-	14,821,429	132,648,179	-	-	147,469,608
Lease liabilities	-	-	-	16,136,064	-	16,136,064
Repayable grants	-	-	7,219,439	-	-	7,219,439
Total financial liabilities	-	14,821,429	139,867,618	499,997,166	187,496,637	842,182,850
Cumulative differential	61,943,324	47,121,895	(92,745,723)	(592,742,889)	(780,239,526)

	31-12-2023

Amounts in Euro	Up to 1 month	1-3 months	3-12 months		1-5 years More than 5 years	Total
31 December 2023
Assets
Non-current
Current
Cash and cash equivalents	169,464,967	-	-	-	-	169,464,967
Total financial assets	169,464,967	-	-	-	-	169,464,967

Liabilities
Non-current
Interest-bearing liabilities	-	-	-	524,178,900	12,678,571	536,857,471
Repayable grants	-	-	-	23,227,870	-	23,227,870
Current
Interest-bearing liabilities	15,000,000	49,857,143	27,182,540	-	-	92,039,683
Repayable grants	-	-	7,219,439	-	-	7,219,439
Total financial liabilities	15,000,000	49,857,143	34,401,979	547,406,770	12,678,571	659,344,463
Cumulative differential	154,464,967	104,607,824	70,205,845	(477,200,925)	(489,879,497)

8.1.3. Liquidity risk

Contractual maturity of financial liabilities (undiscounted flows, including interest)

						30-06-2024
Amounts in Euro	-1 month	1-3 months	3-12 months	1-5 years	+ 5 years	Total
Liabilities
Interest-bearing liabilities (Note 5.6)
Bond loans	420,000	12,854,200	76,889,850	421,353,950	54,322,000	565,840,000
Commercial paper	-	497,000	35,497,000	35,497,000	-	71,491,000
Bank loans	-	4,969,536	38,222,320	54,599,098	40,807,454	138,598,407
Other loans	-	-	7,219,439	19,827,121	-	27,046,560
Derivative financial instruments	1,312,681	2,216,512	8,776,916	9,196,356	(105,654)	21,396,811
Total liabilities	1,732,681	20,537,248	166,605,525	540,473,525	95,023,800	824,372,778
Of which interest (at the rates prevailing at that date)						73,697,895

						31-12-2023
Amounts in Euro	-1 month	1-3 months	3-12 months	1-5 years	+ 5 years	Total
Liabilities
Interest-bearing liabilities (Note 5.6)
Bond loans	420,000	10,721,500	30,895,000	432,923,500	-	474,960,000
Commercial paper	-	745,500	35,745,500	71,491,000	-	107,982,000
Bank loans	15,000,000	5,189,218	16,188,037	62,679,270	12,840,786	111,897,311
Other loans	-	-	7,219,439	23,227,870	-	30,447,309
Derivative financial instruments	-	-	(10,087,985)	(14,934,263)	-	(25,022,248)
Total liabilities	15,420,000	16,656,218	79,959,992	575,387,376	12,840,786	700,264,372
Of which interest (at the rates prevailing at that date)						63,327,406

The table considers the debt issued as at 30 June 2024.

Available and undrawn credit facilities

Amounts in Euro	30-06-2024	31-12-2023
Undrawn credit facilities
Commercial paper (with long term underwriting)	194,500,000	167,250,000
Long-term loans contracted but not disbursed	290,000,000	115,000,000
Other credit facilities	20,450,714	5,450,714
	504,950,714	287,700,714
Drawn commercial paper (Note 5.6)	70,000,000	105,000,000
Other drawn credit facilities	659,278,072	561,889,769
Contracted credit facilities (nominal value)	1,234,228,786	954,590,483

8.1.4. Credit risk

Maximum exposure to credit risk

The Group's maximum exposure to the credit risk of financial assets corresponds to their net amount, as follows:

Amounts in Euro	30-06-2024	31-12-2023
Non-current
Receivables (Note 4.2)	51,717,673	44,399,506
Current
Receivables (Note 4.2)	510,753,927	424,740,973
Cash and cash equivalents (Note 5.9)	61,943,324	169,464,967
	624,414,925	638,605,446

Ageing structure of trade receivables balances

As at 30 June 2024 and 31 December 2023, Trade receivables showed the following ageing structure, considering the due dates for the balances outstanding before impairment:

Amounts not due 302,386,378 238,684,032 1 to 90 days 12,432,370 20,206,869 91 to 180 days 1,037,413 127,789 181 to 360 days 42,151 - 361 to 540 days - - 541 to 720 days - - more than 721 days - - 315,856,161 259,060,841 Balances considered impaired 3,290,665 3,293,670 (3,290,665) (3,293,670) Impairment Net balance of trade receivables (Note 4.2) 315,856,161 259,060,841 Trade receivables covered by credit insurance 285,370,016 226,072,918 Trade receivables covered by bank guarantees 1,000,000 1,300,000 Trade receivables covered by title retention agreements 5,983,789 7,046,082 Trade receivables covered by letters of credit / documentary remittances 18,510,466 22,910,875 Covered receivables 310,864,271 257,329,875 Available and undrawn credit facilities 399,049,790 503,473,207 Credit coverage facilities contracted 760,803,082 709,914,061	Amounts in Euro	30-06-2024	31-12-2023

The amounts shown above correspond to the amounts outstanding according to the contracted due dates.

The uncovered amounts totalling Euro 4,991,890 (Euro 1,730,966 as at 31 December 2023) were previously approved by Navigator's Executive Board.

Despite some delays in the settlement of those amounts, that does not result, in accordance with the available information, in the identification of impairment losses other than the ones considered through the respective losses. These are calculated based on the information periodically collected on the financial behaviour of the Group's Customers, which allow, in conjunction with the experience obtained in the client portfolio analysis and with the history of credit defaults, in the part not attributable to the insurance company, to define the amount of losses to be recognised in the period. The guarantees in place for a significant part of outstanding and long-term balances, justify the fact that no impairment loss has been recorded for those

balances. The rules defined by the credit risk insurance policy applied by the Group, ensure a significant hedge of all outstanding balances.

The analysis of the open balances, by business area, is as follows:

						30-06-2024
Amounts in Euro	MARKET PULP	UWF PAPER	TISSUE PAPER	ENERGY	SUPPORT	Total
Amounts not due	30,758,548	163,188,337	104,292,159	1,553,143	2,594,191	302,386,378
1 to 90 days	934,384	3,690,227	4,192,944	9,919	3,604,896	12,432,370
91 to 180 days	-	-	1,037,413	-	-	1,037,413
181 to 360 days	-	-	-	-	-	-
361 to 540 days	-	-	-	-	-	-
541 to 720 days	-	-	-	-	-	-
more than 721 days	-	-	-	-	-	-
	31,692,932	166,878,564	109,522,516	1,563,062	6,199,087	315,856,161

						31-12-2023
Amounts in Euro	MARKET PULP	UWF PAPER	TISSUE PAPER	ENERGY	SUPPORT	Total
Amounts not due	25,375,941	137,661,510	63,994,452	2,752,026	8,900,103	238,684,032
1 to 90 days	9,532,915	7,413,930	2,077,939	-	1,182,085	20,206,869
91 to 180 days	-	-	127,789	-	-	127,789
181 to 360 days	-	-	42,151	-	-	42,151
361 to 540 days	-	-	-	-	-	-
541 to 720 days	-	-	-	-	-	-
more than 721 days	-	-	-	-	-	-
	34,908,856	145,075,440	66,242,331	2,752,026	10,082,188	259,060,841

The table below represents the quality of the Navigator Group's credit risk, as at 30 June 2024 and 31 December 2023, for financial assets (cash and cash equivalents), (Highest credit rating by one of the three rating agencies, Standard & Poor's, Fitch or Moody's):

Amounts in Euro	30-06-2024	31-12-2023
Rating
AA	-	-
AA-	-	-
A+	19,973,593	56,769,567
A	7,533,023	61,675,370
A-	3,936,297	42,824,483
BBB+	26,691,136	2,643,288
BBB	290,608	1,546,150
BBB-	2,731,878	2,358,707
BB+	-	-
BB	-	-
BB-	-	-
B+	-	-
B	-	-
B-	-	-
Other	786,789	1,647,401
	61,943,324	169,464,967

The amounts under "Other" include bank deposits with banks or entities with no rating, namely local banks in Mozambique and other foreign branches.

The Navigator Group adopts strict policies in approving its financial counterparties, limiting its exposure in accordance with an individual risk analysis and within previously approved limits.

Impairment from trade and other receivables

	Trade	Other
	recceivables	receivables	Total
Amounts in Euro
Balance as at 1 January 2023	(6,621,084)	(283,742)	(6,904,826)
Increase - IFRS 9 impact on profit and loss for the period	1,279,362	-	1,279,362
Increase (Note 2.3)	(535,067)	(61,746)	(596,813)
Reversals	4,634,383	-	4,634,383
Charge-off	(2,051,264)	-	(2,051,264)
Balance as at 31 December 2023	(3,293,670)	(345,488)	(3,639,158)
Increase - IFRS 9 impact on profit and loss for the period	(161,399)	-	(161,399)
Changes in the perimeter	(40,111)	-	(40,111)
Increase (Note 2.3)	(1,401,945)	-	(1,401,945)
Reversals	4,705,750	61,121	4,766,871
Charge-off	(3,099,080)	-	(3,099,080)
Exchange rate effect	(210)	-	(210)
Balance as at 30 June 2024	(3,290,665)	(284,367)	(3,575,032)

8.2. Derivative financial instruments

Movements in derivative financial instruments

	30-06-2024
Amounts in Euro	Trading derivatives	Hedging derivatives	Net total	Trading derivatives	Hedging derivatives	Net total
Balance at the beginning of the period	(4 068 868)	17 835 988	13 767 121	(3 106 233)	46 938 143	43 831 911
Net contracts / settlements	4 987 261	(5 716 132)	(728 871)	(1 999)	(9 722 524)	(9 724 524)
Change in fair value through profit and loss (Note 5.9)	(1 261 201)	5 716 133	4 454 932	(960 636)	9 722 523	8 761 887
Change in fair value through other comprehensive income	-	17 903 353	17 903 353	-	(29 102 154)	(29 102 154)
Balance at the end of the period	(342 808)	35 739 342	35 396 534	(4 068 868)	17 835 988	13 767 121

8.2.1. Detail and maturity of derivative financial instruments by nature

						30-06-2024
Amounts in Euro	Notional	Currency	Maturity	Positive (Note 4.2)	Negative (Note 4.3)	Net
Hedging
Hedging (future sales)	193,000,000	USD	2024	-	(2,625,676)	(2,625,676)
Hedging (future sales)	61,800,000	GBP	2024	-	(832,135)	(832,135)
Interest rate swaps - Bonds	445,000,000	EUR	2031	16,908,652	(217,908)	16,690,744
Energy	63,954,556	EUR	2025	24,470,959	-	24,470,959
BHKP pulp	19,146,000	USD	2024	-	(1,964,550)	(1,964,550)
				41,379,611	(5,640,269)	35,739,342
Trading
Foreign exchange forwards (future sales)	49,800,000	USD	2024	-	(389,243)	(389,243)
Foreign exchange forwards (future sales)	30,725,000	GBP	2024	46,435	-	46,435
				46,435	(389,243)	(342,808)
				41,426,046	(6,029,512)	35,396,534

						31-12-2023
Amounts in Euro	Notional	Currency	Maturity	Positive (Note 4.2)	Negative (Note 4.3)	Net
Hedging
Hedging (future sales)	287,500,000	USD	2024	1,348,010	(608,037)	739,973
Interest rate swaps - Bonds	355,000,000	EUR	2028	17,064,360	-	17,064,360
BHKP pulp	7,092,000	USD	2024	31,655	-	31,655
				18,444,025	(608,037)	17,835,988
Trading
Foreign exchange forwards (future sales)	(46,000,000)	USD	2024	1,014,913	(4,987,262)	(3,972,349)
Foreign exchange forwards (future sales)	(6,099,807)	GBP	2024	-	(96,519)	(96,519)
				1,014,913	(5,083,781)	(4,068,868)
				19,458,938	(5,691,818)	13,767,120

Cash flow hedge | Exchange rate risk EUR/USD

During the first half of 2024, the Group concluded the Zero Cost Collar contracting of the derivative financial instruments begun in the last quarter of 2023, thus guaranteeing full hedging of the estimated exposure of USD 355,000,000 and GBP 117,500,000 for 2024.

Cash flow hedge | Interest rate

During the second quarter of 2024, the Group contracted two swaps in the amount of Euro 50,000,000 each to fix the interest rate associated with the Navigator 2024-2029 bond loan and the Navigator 2024-2031 bond loan, in the amount of Euro 50,000,000, each, both starting in June 2024.

Energy Hedging

In view of the Group's exposure to the electricity and natural gas purchase market, in the first quarter of 2024 we entered into swaps to fix the purchase price of electricity and natural gas for a volume of approximately 595,411 MWh of electricity and 1,445,112 MWh of natural gas until 31 December 2024.

Cash flow hedge | Commodities - BHKP

The Navigator Group uses derivative financial instruments in order to minimise the exposure risk associated with the variation of the pulp price, indexed to PIX, in USD.

During the second quarter of 2023, the Group entered into a swap valued at USD 7,092,000 to fix the price of short fibre pulp (BHKP) for 2024. Similarly, in the first quarter of 2024, the Group entered into a swap for USD 23,400,000 to fix the sales price of short fibre pulp (BHKP) starting in April 2024 and maturing in December 2024.

8.3. Financial assets and liabilities

The fair value of financial instruments is classified according to the fair value hierarchy of IFRS 13 - Fair Value Measurement:

Level 1 Based on quotes from active net markets at the reporting date.

Level 2 Determined using evaluation models, the main inputs of which are observable in the market.

Level 3 Determined using evaluation models, the main inputs of which are not observable in the market.

The valuation techniques are described in more detail in the Group's Annual Report and Accounts. The instruments recognised at fair value in the tables below are measured at fair value on a recurring basis.

8.3.1. Categories of Group Financial Instruments

The financial instruments included in each caption of the consolidated statement of financial position are classified as follows:

Amounts in Euro	Note	Financial assets at amortised cost	Hedging derivative financial instruments	Trading derivative financial instruments	Non-financial assets	Total
30 June 2024
Non-current receivables	4.2	51,717,673	-	-	-	51,717,673
Current receivables	4.2	361,363,659	41,379,611	46,435	107,964,222	510,753,927
Cash and cash equivalents	5.9	61,943,324	-	-	-	61,943,324
Total Assets		475,024,657	41,379,611	46,435	107,964,222	624,414,925
31 December 2023
Non-current receivables	8.3	44,399,506	-	-	-	44,399,506
Current receivables	4.2	311,882,736	18,444,025	1,014,913	93,399,299	424,740,973
Cash and cash equivalents	5.9	169,464,967	-	-	-	169,464,967
Total Assets		525,747,209	18,444,025	1,014,913	93,399,299	638,605,446

Amounts in Euro	Note	Financial liabilities at amortised cost	Hedging derivative financial instruments	Trading derivative financial instruments	Financial liabilities outside the scope of IFRS 9	Total
30 June 2024
Interest-bearing liabilities	5.7	726,407,292	-	-	-	-
Lease liabilities	5.8	-	-	-	115,775,558	115,775,558
Payables	4.3	684,927,522	5,640,269	389,243	-	690,957,034
Total Liabilities		684,927,522	5,640,269	389,243	115,775,558	806,732,592
31 December 2023
Interest-bearing liabilities	5.7	659,344,463	-	-	-	659,344,463
Lease liabilities	5.8	-	-	-	69,996,821	69,996,821
Payables	4.3	612,025,754	608,037	5,083,781	-	617,717,572
Total Liabilities		1,271,370,217	608,037	5,083,781	69,996,821	1,347,058,856

8.3.2. Fair value of financial assets and liabilities

Financial assets and liabilities measured at fair value

		30-06-2024		31-12-2023
Amounts in Euro	Level 2	Nível 3	Level 2	Level 3
Financial assets at fair value through profit and loss
Hedging derivatives (Note 8.2)	46,435	-	1,014,913	-
Hedging financial instruments (Note 8.2)	41,379,611	-	18,444,025	-
Assets measured at fair value
Biological assets (Note 3.8)	-	117,159,175	-	115,591,979
Total Assets	41,426,046	117,159,175	19,458,938	115,591,979
Financial liabilities at fair value through profit and loss
Trading derivatives (Note 8.2)	(389,243)	-	(5,083,781)	-
Hedging financial instruments (Note 8.2)	(5,640,269)	-	(608,037)	-
Total Liabilities	(6,029,513)	-	(5,691,818)	-

Reconciliation of level 3 fair value measurement of financial assets and liabilities

Amounts in Euro	30-06-2024	31-12-2023
Financial assets
Balance as at 1 January	115,591,979	122,499,875
Gains/ (Losses) recognised in the Income Statement	1,567,196	(6,907,896)
Gains/ (Losses) recognised in Other Comprehensive Income	-	-
Closing balance	117,159,175	115,591,979

As at 30 June 2024 and 31 December 2023, the Group had no level 1 financial liabilities.

Level 3 financial assets

At the end of the period, Level 3 financial assets relate to the Group's biological assets, for which the valuation method is described in more detail in the Group's Annual Report and Accounts.

The Group considers the discount rate used in Portugal and the forward price of wood as the most significant variables. The discount rate of 5.19% (Note 3.8) used in the valuation model is determined using the weighted average cost of capital method.

Changes in the assumptions may imply the appreciation/depreciation of these assets:

Amounts in Euro	30-06-2024	31-12-2023
1) Increase of 0.5% in the discount rate in Portugal
Depreciation of Portugal's forest assets	5,254,975	5,990,023
2) Decrease of 3% in forward price
Depreciation of Portugal's forest assets	11,647,950	10,733,022
3) Increase of 0.5% in the discount rate in Mozambique
Depreciation of Portugal's forest assets	251,287	244,194
4) Decrease of 3% in forward price
Depreciation of Portugal's forest assets	763,683	776,149

9. Provisions, commitments and contingencies

9.1. Provisions

Movements in provisions

	Legal	Other
Amounts in Euro	proceedings	provisions	Total
1 January 2023	5,106,977	23,325,900	28,432,877
Increases	-	1,289,652	1,289,652
Impact in profit and loss for the period	-	1,289,652	1,289,652
Exchange rate adjustment	(3,295)	-	(3,295)
Other transfers and adjustments	16,321	362,898	379,219
30 June 2023	5,120,002	24,978,450	30,098,453
Increases	601,811	217,808	819,619
Reversals	(25,660)	(1,800,000)	(1,825,660)
Impact in profit and loss for the period	576,151	(1,582,192)	(1,006,041)
Exchange rate adjustment	3,295	-	3,295
Variação de perímetro	-	105,854	105,854
Other transfers and adjustments	1,809,887	(3,174,162)	(1,364,275)
31 December 2023	7,509,334	20,327,950	27,837,286
Increases	98,853	-	98,853
Reversals	(346,614)	-	(346,614)
Impact in profit and loss for the period	(247,762)	-	(247,762)
Exchange rate adjustment	-	9,040	9,040
Other transfers and adjustments	(44,771)	11,344	(33,427)
30 June 2024	7,216,801	20,348,333	27,565,137

No repayments of any nature are expected in respect of these provisions.

9.2. Commitments

Guarantees provided to third parties

Amounts in Euro	30-06-2024	31-12-2023
Guarantees provided
Navigator guarantees for EIB loans	16,875,000	22,083,333
Ocean Network Express	2,751,947	2,751,947
Portuguese Tax Authorities (AT)	9,288,070	-
Comissão Coordenação Desenvolvimento Regional	354,083	354,083
IAPMEI	447,604	1,280,701
Agência Portuguesa Ambiente	3,337,887	2,846,271
Simria	338,829	338,829
Other	974,390	838,256
	34,367,810	30,493,420

In the first half of 2024, a new bank guarantee was set up for the Portuguese Tax Authorities, in the amount of Euro 9,288,070, as a result of the notification received by The Navigator Company at the end of 2023, relating to the additional assessment of corporate income tax for 2019 resulting from adjustments made during a tax inspection. The Group decided to challenge this additional assessment and refrain from payment and from setting up this bank guarantee.

The guarantees provided to IAPMEI were made in the context of the investment contracts signed between the Portuguese State and Navigator Pulp Aveiro, S.A. (Euro 833,097) and Navigator Tissue Ródão, S.A. (Euro 447,604), in accordance with the terms and conditions defined in the Payment Standard applicable to projects approved under QREN Incentive Systems.

In the case of the Portuguese Environment Agency, bank guarantees were provided in the context of proceedings in litigation associated with the water resources rate for the years 2017 to 2022.

Purchase commitments

Amounts in Euro	30-06-2024	31-12-2023
Purchase commitments
Property, plant and equipment - Industrial equipment	80,188,984	140,885,321
Energy	114,769,625	125,753,200
Wood
Commitments to acquisitions in the subsequent period	117,400,000	265,000,000
Commitments to long-term acquisitions	109,800,000	102,600,000
	422,158,609	634,238,521

In the first half of 2022, the subsidiary Navigator Abastecimento de Madeira, ACE, signed a contract with Portline Ocean Bulk, Inc. for the chartering of vessels for the transportation of timber in 2022, 2023 and 2024. The contract provides for the transport of approximately 940,000 m³ during this period.

Purchase commitments of an operational nature, which are not reflected in the statement of financial position, include liabilities associated with long-term contracts for the supply of raw materials, products and services within the scope of The Navigator Company's activity. The value of the commitments has been estimated on the basis of the information available at the time, based on the contractual terms and the best information available at the time on the volumes and prices applicable for the remaining period of the contracts.

Other commitments

The Navigator Group has made a commitment to achieve carbon neutrality by 2035, with an estimated global investment of Euro 340 million, of which Euro 172.1 million have already been invested until 30 June 2024 (31 December 2023:. Euro 137.6 million).

9.3. Contingent assets and liabilities

Public Debt Settlement Fund

According to Decree-Law 36/93 of 13 February, the tax debts of privatised companies relating to periods prior to the privatisation date (25 November 2006) are the responsibility of the Public Debt Settlement Fund (FRDP). The Navigator Company submitted an application to the FRDP on 16 April 2008, requesting the payment of the tax debts until then settled by the Tax Authorities. On 13 December 2010, the company filed a new request for payment of debts assessed by the Tax Authorities for the periods of 2006 and 2003, which was supplemented, on 13 October 2011, with the amounts already paid and uncontested relating to these same debts, as well as the expenses directly related thereto, pursuant to the ruling dated 24 May 2011 (Case 0993A/02), which confirmed the company's position regarding the enforceability of such expenses.

On 13 December 2017, The Navigator Company, S.A. has made an extra-judicial agreement with the Portuguese Tax Authorities, in which was recognised the responsibility of the Public Debt Settlement Fund (PDSF) for repaying the amount of Euro 5,725,771 corresponding to the amount of Corporate Income Tax improperly paid, resulting from the alleged incorrect

qualification / consideration, by the tax administration, of the tax loss calculated as a result of the operations performed by Soporcel, S.A. in 2003, as well as to promote restitution to Navigator of the mentioned amount.

In this context, FRDP is liable for Euro 22,140,855, detailed as follows:

			Proceedings decided in
	Amounts	Decrease due	favour of the	Outstanding
Period	requested	to RERD	Group	amounts

2002	18,923	-	-	18,923
2004	3,324	-	-	3,324
2004	766,395	-	(139,023)	627,372
	314,957	-	-	314,957
	1,103,599	-	(139,023)	964,576

2005	11,754,680	(1,360,294)	-	10,394,386
2006	11,890,071	(1,108,178)	-	10,781,893
	23,644,751	(2,468,472)	-	21,176,279
	24,748,350	(2,468,472)	(139,023)	22,140,855

Regarding the aggregate corporate income tax proceedings of 2005 and 2006, if Courts come to a decision in favour of Navigator Group, the Group will withdraw the request made to FRDP.

Public Debt Settlement Fund - proceeding no. 774/11.3 BEALM

Additionally, a new petition was filed in the Administrative Court of Almada on 11 October 2011, which called for the repayment of various amounts, amounting to Euro 136,243,949. These amounts regard adjustments in the financial statements of the Group after its privatisation that had not been considered in formulating the price of its privatisation as they were not included in the documentation made available for consultation by the bidders.

On 24 May 2014, the Court denied the Navigator Group's proposal to present testimony evidence, alternatively proposing written submissions. On 30 June 2014, the Group appealed against this decision, but continuously presented written evidence. The Court subsequently confirmed the Navigator Group's views on this matter, both parts appointed experts and the partial expert report was issued on July 2017, being required either by The Navigator Company, S.A. either by the Ministério das Finanças, the attendance of both designated experts in court hearing, in order to provide oral explanations on the expert report.

Following claims filed by Navigator on 11 September 2017 and 15 January 2019, the experts submitted redrafted Expert Reports on 27 December 2018 and 19 March 2019, respectively.

The trial hearing sessions took place between May and June 2019, with the parties filing closing arguments in September 2019.

In January 2023, the Court, while rejecting in their entirety the defendants' pleas in law, issued a judgement against the Navigator Group and acquitted the defendants. Following this decision, the Group appealed to the Supreme Administrative Court in February 2023.

10.Group structure

10.1. Companies included in the consolidation perimeter

10.1.1. Navigator Group subsidiaries

		Share equity owned (%)

				30-06-2024	31-12-2023
Company	Head Office		Direct Indirect	Total	Total	Main activity
Parent company:
The Navigator Company, S.A.	Portugal	-	-	-	-	Sale of paper and pulp
Subsidiaries:
Navigator Brands , S.A.	Portugal	100.0	-	100.0	100.0	Acquisition, operation, lease or concession of the use and disposal
						of trademarks, patents and other industrial or intellectual property
Navigator Parques Industriais, S.A.	Portugal	100.0	-	100.0	100.0	Management of industrial real estate
Navigator Paper Figueira, S.A	Portugal	100.0	-	100.0	100.0	Paper production
Empremédia - Corretores de Seguros, S.A.	Portugal	100.0	-	100.0	100.0	Insurance mediation and advisory services
Empremedia, DAC	Irland	100.0	-	100.0	100.0	Management of shareholdings
Empremedia RE, DAC	Irland	-	100.0	100.0	100.0	Insurance mediation and advisory services
Raiz - Instituto de Investigação da Floresta e Papel	Portugal	97.0	-	97.0	97.0	Applied research in the field of pulp and paper industry and forestry
Enerpulp – Cogeração Energética de Pasta, S.A.	Portugal	100.0	-	100.0	100.0	activity Energy production
Navigator Pulp Figueira, S.A.	Portugal	100.0	-	100.0	100.0	Production of cellulose pulp and provision of administration,
						management and internal advisory services
Ema Cacia - Engenharia e Manutenção Industrial, ACE	Portugal	-	73.8	73.8	73.8
Ema Setúbal - Engenharia e Manutenção Industrial, ACE	Portugal	-	79.7	79.7	79.7	Provision of industrial maintenance services
Ema Figueira da Foz- Engenharia e Manutenção Industrial, ACE Portugal		-	80.7	80.7	80.7
Navigator Pulp Setúbal, S.A.	Portugal	100.0	-	100.0	100.0	Cellulose pulp production
Navigator Pulp Aveiro, S.A.	Portugal	100.0	-	100.0	100.0	Cellulose pulp production
						Wholesale and manufacture of packaging and other items made
Navigator Fiber Solutions , S.A.	Portugal	0.1	99.9	100.0	100.0	from cellulose pulp, paper and cardboard and related products.
Navigator Tissue Aveiro, S.A.	Portugal	100.0		100.0	100.0
Navigator Tissue Ródão , S.A.			- 100.0	100.0	100.0	Tissue paper production
	Portugal	-	100.0	100.0	100.0
Navigator Tissue Iberica , S.A. Navigator Tissue Ejea , SL	Espanha Spain	- 100.0		100.0	100.0	Sale of tissue paper Tissue paper production
Navigator Tissue France ,EURL	France		- 100.0	100.0	100.0	Sale of tissue paper
Portucel Moçambique - Sociedade de Desenvolvimento Florestal e		-
Industrial, Lda	Mozambique	90.0	-	90.0	90.0	Forestry production
Navigator Forest Portugal, S.A.	Portugal	100.0	-	100.0	100.0	Forestry production
EucaliptusLand, S.A.	Portugal	-	100.0	100.0	100.0	Forestry production
Gavião - Sociedade de Caça e Turismo, S.A.	Portugal	-	100.0	100.0	100.0	Management of hunting resources
Afocelca - Agrupamento complementar de empresas para			64.8	64.8	64.8
protecção contra incêndios, ACE	Portugal	-				Provision of forest fire prevention and fighting services
Viveiros Aliança - Empresa Produtora de Plantas, S.A.	Portugal	-	100.0	100.0	100.0	Plant production in nurseries
Bosques do Atlantico, SL	Spain	-	100.0	100.0	100.0	Trade in wood and biomass and logging
Navigator Africa, SRL	Italy	-	100.0	100.0	100.0	Trade in wood and biomass and logging
Navigator Paper Setúbal , S.A.	Portugal	100.0	-	100.0	100.0	Paper and energy production
Navigator North America Inc.	USA	-	100.0	100.0	100.0	Sale of paper
Navigator Afrique du Nord	Morocco	-	100.0	100.0	100.0
Navigator España, S.A.	Spain	-	100.0	100.0	100.0
Navigator Netherlands, BV	The Netherlands	-	100.0	100.0	100.0	Provision of sales intermediation services
Navigator France, EURL	France	-	100.0	100.0	100.0
Navigator Paper Company UK, Ltd	United Kingdom	-	100.0	100.0	100.0
Navigator Holding Tissue UK, Ltd (anteriormente designada
Accrol Group Holdings plc)	United Kingdom	-	100.0	100.0		Holding company
Navigator Corporate UK, ltd (anteriormente designada	United Kingdom	-	100.0	100.0		Holding company
Accrol UK, ltd)
Accrol Holdings, ltd	United Kingdom	-	100.0	100.0		Holding company
Navigator Tissue UK, ltd (anteriormente designada Accrol Papers, ltd)	United Kingdom	-	100.0	100.0		Tissue paper conversion
LTC Parent Ltd	United Kingdom	-	100.0	100.0		Holding company
Leicester Tissue Company ltd	United Kingdom	-	100.0	100.0		Tissue paper conversion
Art Tissue ltd	United Kingdom	-	100.0	100.0		Sale of tissue paper
John Dale (Holdings) ltd	United Kingdom	-	100.0	100.0		Holding company
John Dale, ltd	United Kingdom	-	100.0	100.0		Tissue paper production
Severn Delta, ltd	United Kingdom	-	100.0	100.0		Tissue paper production
Navigator Italia, SRL	Italy	-	100.0	100.0	100.0
Navigator Deutschland, GmbH	Germany	-	100.0	100.0	100.0
Navigator Paper Austria, GmbH	Austria	-	100.0	100.0	100.0
Navigator Paper Poland SP Z o o	Poland	-	100.0	100.0	100.0
Navigator Eurasia	Turkey	-	100.0	100.0	100.0
Navigator Paper Mexico	Mexico	25.0	75.0	100.0	100.0	Provision of sales intermediation services
Navigator Middle East Trading DMCC	Dubai	-	100.0	100.0	100.0
Navigator Egypt, ELLC	Egypt	1.0	99.0	100.0	100.0
Navigator Paper Southern Africa	South Africa	1.0	99.0	100.0	100.0
Portucel Nigeria Limited	Nigeria	1.0	99.0	100.0	100.0
Navigator Green Fuels Setúbal, S.A.	Portugal	100.0	-	100.0	100.0	Production of sustainable fuels
Navigator Green Fuels Figueira da Foz, S.A.	Portugal	100.0	-	100.0	100.0	Production of sustainable fuels
Navigator Abastecimento de Madeira, ACE	Portugal	97.0	3.0	100.0	100.0	Sale of wood

10.1.2. Incorporated joint operations

		Share equity owned (%)
		30-06-2024		31-12-2023
Company	Head Office		Direct Indirect	Total	Total	Main activity
Pulpchem Logistics, A.C.E.	Portugal	50.0	-	50.0	50.0	Purchases of materials, subsidiary materials and services used in the pulp and paper production processes

10.2. Changes in the consolidation perimeter

During the period ended 30 June 2024, the consolidation perimeter was changed from the previous period by the acquisition of Accrol Group, as follows:

2024

- Acquisition of Navigator Holding Tissue UK, Ltd (formerly Accrol Group Holdings plc)
- Acquisition of Navigator Corporate UK, ltd (formerly Accrol uk, ltd)
- Acquisition of Accrol Holdings, ltd
- Acquisition of Navigator Tissue UK, ltd (formerly Accrol Papers, ltd)
- Acquisition of LTC Parent Ltd
- Acquisition of Leicester Tissue Company ltd
- Acquisition of Art Tissue ltd
- Acquisition of John Dale (Holdings)ltd
- Acquisition of John Dale, ltd
- Acquisition of Severn Delta, ltd

10.3. Transactions with related parties

Balances with related parties

	30-06-2024		31-12-2023
Amounts in Euro	Receivables (Note 4.2)	Payables (Note 4.3)	Receivables (Note 4.2)	Payables (Note 4.3)
Shareholders (Note 5.2)
Semapa - Soc. de Investimento e Gestão, SGPS, S.A.	102	1,152,535	-	952,804
Other subsidiaries of Semapa Group
Secil - Companhia Geral Cal e Cimento, S.A.	-	46,299	-	40,974
Secil Britas, S.A.	-	137,816	-	111,647
Unibetão, S.A.	-	104,273	-	435,100
Other related parties
Hotel Ritz, S.A.	-	6,286	-	1,672
	102	1,447,209	-	1,542,197

Transactions of the period with related parties

		30-06-2024	30-06-2023
Amounts in Euro	Purchase of goods and services	Sales and services rendered	Purchase of goods and services	Sales and services rendered
Shareholders (Note 5.2)
Semapa - Soc. de Investimento e Gestão, SGPS, S.A.	5,756,274	42	5,110,151	93
	5,756,274	42	5,110,151	93
Other subsidiaries of Semapa Group
Secil - Companhia Geral Cal e Cimento, S.A.	75,955	-	91,854	2,435
Secil Britas, S.A.	55,143	-	83,607	-
Unibetão, S.A.	427,343	-	4,979	-
	558,441	-	180,440	2,435
Other related parties
Hotel Ritz, S.A.	7,352	-	5,349	-
	7,352	-	5,349	-
	6,322,068	42	5,295,941	2,528

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 70.03% 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 related parties for the purpose of financial reporting, the members of the Board of Directors and other Corporate Bodies were considered as related parties.

11.Explanation added for translation

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.

BOARD OF DIRECTORS

Ricardo Miguel dos Santos Pacheco Pires Chairman of the Board of Directors

António José Pereira Redondo Chairman of the Executive Board

José Fernando Morais Carreira de Araújo Executive Board Member

Nuno Miguel Moreira de Araújo Santos Executive Board Member

João Paulo Cabete Gonçalves Lé Executive Board Member

Dorival Martins de Almeida Executive Board Member

António Quirino Vaz Duarte Soares Executive Board Member

Ana Teresa Cunha de Pinto Tavares Lehmann Board Member

Hugo Alexandre Lopes Pinto Board Member

Maria Isabel da Silva Marques Abranches Viegas Board Member

Maria Teresa Aliu Presas Board Member

Mariana Rita Antunes Marques dos Santos Board Member

Sandra Maria Soares Santos Board Member

Vítor Paulo Paranhos Ferreira Board Member

KPMG & Associados - Sociedade de Revisores Oficiais de Contas, S.A. Edifício FPM41 - Avenida Fontes Pereira de Melo, 41 - 15.º 1069-006 Lisboa - Portugal +351 210 110 000 | www.kpmg.pt

LIMITED REVIEW REPORT ON INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(This report is a free translation to English from the original Portuguese version. In case of doubt or misinterpretation the Portuguese version will prevail.)

Introduction

We have performed a limited review of the accompanying interim condensed consolidated financial statements of The Navigator Company, S.A. (the Group), which comprise the interim condensed consolidated statement of financial position as of 30 June 2024 (that presents a total of Euro 3,113,145,546 and total equity attributable to the shareholders of Euro 1,333,708,879, including a consolidated net profit attributable to the shareholders of Euro 158,845,066), the interim condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the six month period then ended, and notes to these interim condensed consolidated financial statements.

Management's responsibilities

Management is responsible for the preparation of this interim condensed consolidated financial statements in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union, and for the implementation and maintenance of an appropriate internal control system to enable the preparation of interim condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' responsibilities

Our responsibility is to express a conclusion on the accompanying interim condensed consolidated financial statements. Our work was performed in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" and further technical and ethical standards and guidelines issued by the Portuguese Institute of Statutory Auditors ("Ordem dos Revisores Oficiais de Contas"). These standards require that we conduct the review in order to conclude whether anything has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared in all material respects in accordance with the IAS 34 – Interim Financial Reporting as adopted by the European Union.

KPMG & Associados –Sociedade de Revisores Oficiais de Contas, S.A., sociedade anónima portuguesa e membro da rede global KPMG, composta por firmas membro independentes associadas com a KPMG International Limited, uma sociedade inglesa de responsabilidade limitada por garantia.

KPMG & Associados – Sociedade de Revisores Oficiais de Contas, S.A. Capital Social: 3.916.000 Euros - Pessoa Coletiva N.º PT 502 161 078 - Inscrito na O.R.O.C. N.º 189 - Inscrito na C.M.V.M. N.º 20161489 Matriculada na Conservatória do registo Comercial de Lisboa sob o N.º PT 502 161 078

A limited review of interim condensed consolidated financial statements is a limited assurance engagement. The procedures that we have performed consist mainly of making inquiries and applying analytical procedures and subsequent assessment of the evidence obtained. The procedures performed in a limited review are substantially less that those performed in an audit conducted in accordance with International Standards on Auditing (ISA). Accordingly, we do not express an audit opinion on these interim condensed consolidated financial statements.

Conclusion

Based on the work performed, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements of The Navigator Company, S.A., on 30 June 2024, are not prepared, in all material respects, in accordance with the IAS 34 – Interim Financial Reporting as adopted by the European Union.

27 September 2024

SIGNED ON THE ORIGINAL

KPMG & Associados Sociedade de Revisores Oficiais de Contas, S.A. (no. 189 and registered at CMVM with the no. 20161489) represented by Rui Filipe Dias Lopes (ROC no. 1715 and registered at CMVM with the no. 20161325)

AI Terminal

The Navigator Company

1900_ir_2024-10-11_7f518f2a-be7d-4fdc-b1cb-686108fc4658.pdf

PERFORMANCE IN 1ST HALF 2024

Analysis 2nd Quarter (vs. Q1 2024 and vs. Q2 2023)

Analysis 1st Half 2024 vs. 1st Half 2023

LEADING INDICATORS

ANALYSIS OF RESULTS

The printing and writing papers industry

Global Demand for Printing and Writing Papers

Pulp Market

Growth and strong performance in Tissue business

Tissue Sales 1 2 H1 2024 (vs. H1 2023)

Packaging - From Fossil to Forest – investment in sustainability, innovation and transformation

Power Output of 745 GWh, of which 77% was from renewable energy sources

Cost management, favourable demand trends and price levels led to EBITDA of €299 million

Financial Results

Generation of free cash flow

New finance facilities, reaffirming Sustainable Financial Management

Capex of € 93 million

A BIOINDUSTRY ON THE RIGHT SIDE OF THE FUTURE

1 st place in the Sustainalytics rating agency's Paper and Forestry ranking

Navigator tops Sustainalytics' ESG Risk Rating

External recognition of our commitment to sustainability

MARKET OUTLOOK

Conference Call and Webcast for Analysts and Investors

FINANCIAL STATEMENTS

Condensed interim consolidated income statement

For the periods ended 30 June 2024 and 2023

Condensed interim consolidated statement of comprehensive income

Condensed interim consolidated statement of financial position

As at 30 June 2024 and 2023

Condensed interim consolidated statement of changes in equity

For the periods ended 30 June 2024 and 2023

Condensed interim consolidated cash flow statement

For the periods ended 30 June 2024 and 2023

CONTENTS Condensed Interim Consolidated Financial Statements

1. Introduction

1.1. The Group

1.2. Acquisition of Accrol Group's UK consumer tissue business

Transferred consideration

Identification of assets and liabilities acquired and goodwill

Acquisition-related costs

1.3. Subsequent events

1.4. Basis for preparation

1.4.1. Authorisation to issue condensed interim consolidated financial statements

1.4.2. Basis for presentation

1.4.5. Basis for measurement

1.4.6. Comparability

1.5. New IFRS standards adopted and to be adopted

1.5.1. Other standards, amendments and interpretations adopted or to be adopted

Standards, amendments and interpretations adopted in 2024

Standards, amendments and interpretations to be adopted in subsequent periods

1.6. Significant accounting estimates and judgements

2. Operational performance

2.1 Revenue and segment reporting

Financial information by operating segment in 2024 and 2023

Revenue by business segment, by geographic area and by recognition pattern

Group's revenue distribution by geographic area

2.2 Other operating income

2.3 Other operating expenses

3. Investments

3.1. Goodwill

Goodwill – net amount

Navigator Brands, S.A. / Navigator Paper Figueira, S.A.

Navigator Tissue Ródão, S.A.

Navigator Tissue Ejea, S.L.U.

Navigator Tissue UK

3.2. Intangible assets

Movements in intangible assets

CO2 allowances

CO2 allowances – movements in the period

3.3. Property, plant and equipment

Movements in property, plant and equipment

3.4. Investment properties

Movement in investment properties

3.5. Government grants

Government grants - movements

The Group expects to recognise grants in profit or loss as follows:

Non-repayable Government grants

CO² allowances

CO² allowances – movements in the period