The Navigator Company

Investor Presentation • Feb 13, 2025

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ANNUAL RESULTS 2024

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PERFORMANCE 4TH QUARTER AND FULL-YEAR 20242
2024 vs. 20232
Analysis 4th Quarter (vs. Q3 2024 and vs. Q4 2023)3
LEADING INDICATORS 4
ANALYSIS OF RESULTS 5
2024 vs. 20235
Printing and Writing papers 5
Pulp 7
Tissue8
Packaging 10
Energy11
EBITDA12
Financial Results 12
Free cash flow 13
Financial Management 13
Investment 14
FROM FOREST TO FUTURE15
OUTLOOK 19
PROPOSED ALLOCATION OF PROFITS 20
FINANCIAL STATEMENTS21

PERFORMANCE 4TH QUARTER AND FULL-YEAR 2024

The year 2024 started with a troubled macroeconomic and geopolitical outlook, as well as expectations of significant volatility in international markets (for finance, energy, logistics and commodities). Nevertheless, the international economy proved remarkably resilient, with better than expected performance.

In the P&P sector, the first half brought a sharp increase in the benchmark indexes for pulp prices, followed in the second half by a severe correction in prices in China and a consequent adjustment in Europe. This volatility in the pulp price contrasted with the resilience in benchmark prices for printing and writing paper. The year turned out to bring an improvement in the pace of new orders for printing and writing paper, packaging paper, above all in the first half and at the end of the year, and also for tissue paper.

Navigator's competitiveness is built on efficient management of its business mix, on its sales strategy, on cost controls and on its focus on innovation and business sustainability. This was a year of major achievements - we successfully acquired a new tissue operation in the United Kingdom, Navigator Tissue UK, and we started up integrated production of moulded fibre, designed to substitute single-use plastic and aluminium packaging in the food service and food packaging market. This added investment in the tissue and packaging segments has strengthened Navigator's business diversification strategy, with these two segments already representing 26% of total sales.

Navigator remains committed to investment and innovation in every segment, exploring opportunities for growth in tissue, packaging and energy. The positioning of our brands, the sustainability of our business, our scale of operations and sound finances form the foundation of a resilient business model, enabling us to achieve consistent results even in uncertain economic conditions.

2024 vs. 2023

• 2 nd best result in the company's history, with turnover in 2024 totalling 2,088 million euros (up 7%);
• EBITDA stood at 547 million euros (up 9%), the company's second best result ever, even when not including the two recent acquisitions in the tissue segment, in Spain (Navigator Tissue Ejea) and the United Kingdom (Navigator Tissue UK), with an EBITDA margin of 26% (up 0.5 pp);
• Net annual income totalled 287 million euros (up 4%), also the company's second best result in its history;
• Increased volume of printing and packaging paper sales (up 8%), thanks to the faster pace of new orders up to May and again at the end of the year. Drop in volume of pulp sales (down 16%), due to increased incorporation in paper products, offset, in part, by higher prices YoY (up 13%). Increased volume of tissue sales in relation to 2023 (up 55%) driven by growth in sales of finished products and the addition of Navigator Tissue UK's capacity during the 2nd quarter;
• Given that Navigator is currently in an investment phase, attention is drawn to the capex figure for 2024, which totalled 241 million euros (vs. € 187 million in 2023). This includes close to 120 million euros relating to investment classified as ESG, representing 50% of total capex.
• Net debt of 617 million euros, up by only 128 million euros on 2023, despite the cash outlay needed for acquisition of Navigator Tissue UK (which required € 153 million to pay for the shares and also for

consolidation of additional debt), for capex of 241 million euros and distribution of 150 million euros in dividends; Net Debt / EBITDA ratio of 1.13x.

Analysis 4th Quarter (vs. Q3 2024 and vs. Q4 2023)

• Navigator recorded turnover of 520 million euros (up 3% on Q3 2024; up 6% on Q4 2023);
• EBITDA stood at 116 million euros (down 13% on Q3; down 8% on Q4 2023), reflected in an EBITDA margin of 22.2% (down 4.1 pp on Q3; down 3.1 pp on Q4 2023). Results for the quarter were brought down by the longer than planned annual maintenance shutdown at one of the mills and by a series of one-off events in our energy assets: i) problems identified in the course of a planned shutdown of a power generation turbine; ii) a breakdown in a power supply transformer; and unplanned shutdowns of biomass boilers. This sequence of events - relating to situations which have since been solved - resulted in a reduction in power sales and increased purchases of natural gas and electricity, during a period of high prices for these commodities. In addition, the drop in the pulp price, together with higher prices for energy and chemicals, also had an impact on results for the period;
• The volume of printing and packaging paper sales was up on the previous quarter, although less high than initially anticipated;
• The volume of pulp sales surpassed the previous three quarters, in a quarter marked however by falling prices in the European market and continued low prices in China;

• The volume of tissue sales surpassed the previous quarter, driven by dynamic demand, and was also up YoY, thanks to the addition of the new capacity, as from the 2nd quarter of the year, of what is now called Navigator Tissue UK;
• The packaging segment continued to record growth in the volume of orders, due essentially to the growing acceptance of distinctive products, based on eucalyptus globulus fibre and the development of new product ranges in the area of flexible packaging;
• Production started of moulded fibre packaging in Aveiro the largest fully integrated unit in the world, using eucalyptus fibre.

	FY	FY
Million euros	2024	2023	FY 24/FY 23(8)
Total sales	2,088.3	1,953.2	6.9%
EBITDA (1)	546.8	501.5	9.0%
Operating profits	378.9	366.4	3.4%
Financial results	-25.8	-19.3	-6.5
Net earnings	286.9	274.9	4.4%
Cash flow	454.8	410.1	44.7
Free Cash Flow (2)	22.5	92.3	- 69.8
Capex	240.6	186.5	54.1
Net Debt (3)	617.3	489.9	127.5
EBITDA/Sales (%)	26.2%	25.7%	0.5 pp
ROS	18.1%	18.8%	-0.6 pp
ROCE (4)	20.1%	21.3%	-1.2 pp
ROE (5)	21.5%	21.4%	0.1 pp
Equity ratio	40.5%	46.8%	-6.4 pp
Net Debt/EBITDA (6)(7)	1.13	0.98	0.15

LEADING INDICATORS

Million euros	Q4 2024	Q3 2024	Q4 24/Q3 24 (8)	Q4 2023	Q4 24/ Q4 23 (8)
Total sales	519.7	503.0	3.3%	492.7	5.5%
EBITDA (1)	115.5	132.5	-12.8%	125.0	-7.6%
Operating profits	62.2	91.0	-31.6%	88.7	-29.9%
Financial results	- 16.1	0.7	-16.9	- 3.6	-12.5
Net earnings	45.5	82.6	-44.9%	74.2	-38.6%
Cash flow	98.8	124.1	- 25.3	110.4	- 11.7
Free Cash Flow (2)	25.8	21.3	4.6	59.9	- 34.0
Capex	89.8	57.8	31.9	44.4	45.4
Net Debt (3)	617.3	643.2	- 25.8	489.9	127.5
EBITDA/Sales (%)	22.2%	26.3%	-4.1 pp	25.4%	-3.1 pp
ROS	12.0%	18.1%	-6.1 pp	18.0%	-6.0 pp
ROCE (4)	13.2%	18.9%	-5.7 pp	20.6%	-7.4 pp
ROE (5)	13.6%	24.3%	-10.6 pp	23.0%	-9.4 pp
Equity ratio	40.5%	45.1%	-4.6 pp	46.8%	-6.4 pp
Net Debt/EBITDA (6)(7)	1.13	1.16	-0.03	0.98	0.15

1.Operating results + depreciation + provisions;

1. Variation net debt + dividends + purchase of own shares l Q2 2024 impacted by Accrol's debt at the acquisition date and incorporating the effect of the acquisition (€ 153 million)

2. Interest-bearing liabilities - liquid assets (not including effect of IFRS 16)

3. ROCE = Annualised operating income / Average Capital invested (N+(N-1))/2

5.ROE = Annualised net income / Average Shareholders' Funds (N+(N-1))/2

6.(Interest-bearing liabilities - liquid assets) / EBITDA corresponding to last 12 months;

7.Impact IFRS 16: Net Debt / EBITDA in 2024 of 1.3; Net Debt / EBITDA in 2023 of 1.1

8.Variation in figures not rounded up/down

ANALYSIS OF RESULTS

2024 vs. 2023

The focus on efficiency and cost management brought a significant reduction in cash costs, down by 2% to 10%, in relation to 2023, in all pulp and paper segments (printing and writing, tissue and packaging). Continued efforts to control costs have made it possible to cut cash costs by between 10% and 14% in comparison with 2022, although they remain above pre-pandemic levels. Growth in sales volumes, the resilience of printing, packaging and tissue paper prices and the growing proportion of total business represented by new business segments are the factors behind Navigator's strong results.

The printing and writing papers industry

In Europe, apparent demand for uncoated woodfree printing and writing paper (UWF) grew by 8% in relation to 2023, with the strongest growth in paper for the printing industry (10%), followed by office paper (8%) and reels for the paper processing industry (5%).

In the United States, demand dipped by just 0.2% in relation to 2023, whilst China recorded growth of 2% (January to November).

Globally, apparent demand for printing and writing paper grew by 0.5% across all segments, with demand for UWF up 0.3%, and coated and gloss papers (CWF) growing by 0.5%, whilst papers with mechanical fibre (coated and uncoated) experienced growth in demand of 1.2%.

Significantly, UWF has remained the most resilient segment over the years, due to its versatile uses. Unlike other grades, where demand has slumped since 2020, UWF has been practically stagnant (declining 0.58% a year, as compared to a drop of 4.1% in CWF and 6.9% in papers made from mechanical pulp - CAGR 2020-24).

Global Demand for Printing and Writing Papers

Source: PPPC, December (2024 vs. 2023)

Capacity utilisation rates in the European industry (output/capacity) were up on 2023. Navigator operated in 2024 with an average capacity utilisation rate of 86%, as compared to an average of 82% in the rest of European industry for the same period.

The benchmark index for office paper in Europe (PIX A4 B-copy) stood at 1,096 €/t at the end of December, up slightly from its level at the start of the year (1,092 €/t), pointing to the resilience of the paper price. The index closed the year of 2024 at an average price of 1,107€/t, representing an increase of 31% over pre-pandemic levels (845€/t between 2015 and 2021).

Navigator's printing and packaging paper sales totalled 1,225 thousand tons, up by 8% on 2023. The sales volume, in euros, grew by 3% (in relation to 2023). Attention is drawn to the strength of our business model, based on differentiation, premium products and strong mill brands in the various markets where we operate.

Mill brands represented 77% of the year's sales (vs. an average of 73% over the period 2018-2024). Premium products continue to represent a large share, at 58% (vs. an average of 55% over the period 2018-2024). These two ratios stand at their 2nd highest levels of all time. When market conditions are more difficult, mill brands and segments with greater value added offer an additional safeguard for Navigator's results.

Pulp Market

After a 1st half of 2024 marked by the strength of the benchmark index for hardwood pulp in Europe (PIX BHKP in dollars), which rose to record levels in early July (1,440 USD/ t), the 2nd half brought a severe correction in prices in China, ending the year at 545 USD/t. This slump in prices confirmed the 2024 downward cycle as the fastest and sharpest in recent years. As a consequence, prices also adjusted downwards in Europe in the second half, most markedly in 4th quarter, ending the year at 1,000 USD/t.

In China, prices stabilised at the end of the 4th quarter, supported by an increase in business - an improvement in downstream sectors, with the market feeling the effect of a major player in the domestic market discontinuing production (due to persistently poor returns on operations), and an upsurge in the volume of trading at the end of the year.

In Europe, in 2024, demand for hardwood pulp (HW) performed well, culminating in growth of 13%, with 12% growth for short eucalyptus fibre (EUCA). The pulp market in Europe was sustained by stable demand in certain segments, such as printing and writing paper (especially UWF), tissue and packaging paper (UWF up 8%, CWF up 5% and tissue up 7%).

This improvement stands in contrast to the decline in demand for hardwood fibre in China, with a downward correction of 9% in HW and 8% in EUCA, penalised by a domestic paper market that remained depressed through to the end of the 4th quarter, making it hard for paper manufacturers to increase prices and relieve the pressure on their margins.

New ventures in 2023 in Chile and Uruguay and the start-up of new production capacity in 2024 in Brazil and China both led to a gradual increase in supply, especially over this period, putting downwards pressure on prices.

It should be stressed that, worldwide, eucalyptus fibres represent almost half of all fibre in the market and almost 80% of hardwood fibre.

Source: PPPC, December (2024 vs. 2023)

Pulp sales stood at 389 thousand tons, due to increased incorporation into paper products, representing a reduction of 16% in relation to 2023. The improvement in average sales prices in relation to the previous year (up 13%) meant that the value of sales dropped by just 5% (vs. 2023).

Growth and strong performance in Tissue business

Demand for tissue was lively throughout the year, with growth of 5.4% estimated for 2024 in Western Europe. This strong growth is due essentially to recovery in consumption in the Away-from-Home segment and growing household spending power.

Navigator's tissue business took a front seat in 2024, marked by the acquisition of what is now called Navigator Tissue UK, which took effect during the 2nd quarter. The integration of this new unit is part of

Navigator's ambitious plan for growth and diversification and strengthens its strategic position in the tissue market.

Tissue sales displayed significant resilience, with sustained growth in demand for Navigator's finished products.

The volume of tissue sales (finished products and reels) totalled 220 thousand tons in 2024, representing an increase in volume of 55% in relation to 2023, with sales in euros likewise growing by 55%. This growth was powered by the additional capacity acquired in Spain in the 2nd quarter of 2023, and by the capacity of Navigator Tissue UK as from 1 May 2024, which in addition to boosting growth of sales, broadened the customer base and yielded significant gains in acquisition synergies.

International sales in tissue business continue to grow, and now represent 79% of the total sales volume in this segment, with the English and Spanish markets accounting for close to two thirds of total sales, at 31% each, and the French market claiming 15% of sales. Sales broke down into 97% finished products and 3% reels, representing an improvement in the mix of 8pp when compared with 2023.

In terms of client segments, At Home or Consumer (retail) business has grown in importance, currently accounting for 83% of sales, whilst Away-from-home and wholesalers account for the remaining 17%.

Tissue Sales 2024 (vs. 2023)

1 ton ²Q2, Q3 and Q4 2023 and FY 2024 include Tissue Ejea l May to December 2024 include Tissue UK ³Finished products and reels

The new year has started with good news, as the Amoos brand won two major accolades: the Five Star Prize and the 2025 Consumer's Choice Award. These awards are also the result of continuous work on branding, which has been gradually rolled out in this business area. Public recognition boosts contact and the visibility of our products and brands with the general public; no less importantly, it improves the brand profile with our customers and prospective major clients.

Five Star Award: 4 years of excellence. For the fourth year running, Amoos has won the Five Star Award, coming out top in the napkins category with its 40x40 product in the Naturally Soft range. This award shows that Portuguese consumers are interested in a more sustainable, high-quality solution - featuring softness, in the case of napkins - provided by the Natural Soft Fibre™ technology. The Naturally Soft range is made up of dermatologically tested products, made from 100% virgin fibre, free of chemical bleaching agents, making more efficient use of certain resources, such as wood, energy and water.

Consumer's Choice 2025: No. 1 in Toilet Paper For the first time, the Amoos brand also won the title of No. 1 Brand in the 2025 Consumer's Choice, in the Toilet Paper category. This award, which enjoys healthy awareness ratings in the world of Portuguese consumer goods, highlights the potential of the value placed by Portuguese households on the quality of the Amoos toilet paper range.

Product of the Year Awards: In June 2024, we launched a multi-purpose kitchen roll range in the United Kingdom under the iconic Flash cleaning brand. Made from paper, which is 100% FSC certified, Flash Kitchen Roll combines strength and absorption, providing consistent and reliable cleaning power. In 2025, Flash Kitchen Roll was voted Product of the Year in the domestic papers category of the Product of the Year Awards, the largest consumer survey in the United Kingdom on product innovation.

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

Expectations of a return to normality in 2024 were confirmed and market behaviour was more typical, with demand stabilising and growing stronger. European deliveries of Kraft MF (machine finished) papers (white and brown) reported by CEPI (January-December) were up by 23.1% on the same period in 2023.

Navigator's packaging segment performed consistently over the year, with a gradual increase in sales. The sales volume in the segment doubled in relation to 2023. At present, 70% of our sales are in Europe, mainly in Italy, Iberia, France and Germany, with the remaining 30% in overseas markets (where Latin America, Turkey and North Africa are our leading markets).

This performance has been based on the move into new segments, launched in 2023 and the early months of 2024, above all in the area of Flexible Packaging. The strong results in these segments have confirmed the effectiveness of the strategy of diversifying into these new packaging paper applications using eucalyptus fibre. In fact, sales in the Flexible Packaging and Boxes (rigid packaging) segments accounted for a significantly larger proportion of turnover, thereby reducing the dependency on the bag segment, a more competitive market where growth has recently shown less momentum.

Navigator has therefore continued to broaden its customer base, which already numbers close to 300 clients in a sales operation 100% based on its own brand - gKraft™. Our packaging paper offering is based on three gKraft™ macro segments: BAG, FLEX and BOX, which subdivide into 12 sub-segments for different applications, catering for the bag, flexible packaging and box markets. The innovative introduction of the properties of eucalyptus fibre has been crucial in securing the growing acceptance and recognition that these products already enjoy in the market.

The year 2024 also saw the start-up of production at the new industrial unit in Aveiro for moulded fibre components. Production started up with 7 products for single-use applications in the food sector, fully recyclable and/or compostable: a 22cm plate, a 17cm plate (dessert), a 500ml bowl, 1 litre take-away packaging, a tray (laminated for raw protein - beef, pork and poultry), 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 single use plastics and aluminium. Alongside this, work has proceeded on developing new products, in partnership with national and international clients, and on researching and developing new sustainable barrier property solutions, as well as trials of commercial products.

In an important breakthrough, already this year, our moulded fibre products, under the gKraft™ Bioshield brand, secured conformity certification for food contact under European Regulation (EC) 1935/2004 (Food Contact) and under the German recommendation BfR XXXVI. This means that our gKraft™ Bioshield products are the first moulded fibre products in the world to achieve conformity with recommendation BfR XXXVIA. This certification was issued by ISEGA, the prestigious German laboratory. Certification enables us to market products for the food segment, for contact with fatty, moist and dry foods, applying to our entire tableware and take-away line.

78% of Power Output generated from renewable energy sources

Energy sales in 2024 stood at approximately 123 million euros, down 27% on the previous year.

This reduction was due essentially to the transfer of the Setúbal combined-cycle natural gas power station to operation for self-consumption from January; in the previous year, the plant had operated exclusively for sale to the market.

By way of compensation, the reduction in power sales resulting from operation of the Setúbal plant for selfconsumption was matched by less power being purchased for the group's largest paper machine.

Another important development during the year was the participation by the group's industrial units in the manual Frequency Restoration Reserve Band Market (mFRR Band). This system service, provided to the operator of the power grid by qualified consumers, helps to safeguard the security of supply in the National Electrical System, which has already proved to be decisive for protecting domestic consumers and critical users. Over the course of the year, Navigator's units were mobilised on 32 occasions to reduce their power consumption, under the mFRR Band service.

Another important development in 2024 was completion of work on new solar arrays for self-consumption power at the industrial sites in Figueira da Foz, Aveiro and Vila Velha de Ródão. With photovoltaic solar power facilities featuring total rated capacity of approximately 38 MW, Navigator is now Portugal's largest generator of solar power for self-consumption in an industrial setting.

Cost management and growing sales volumes of UWF, Packaging and Tissue enabled us to record EBITDA of € 547 million

Variable costs were brought down significantly over the year which, in conjunction with management of paper prices, especially in segments with greater value added, afforded additional protection for results. These factors, combined with a sales strategy of prioritising mill brands and product and market diversification, made it possible to achieve EBITDA of € 547 million.

Cash costs came down by between 2% and 10% in all pulp and paper segments (printing and writing, tissue and packaging). Continued efforts to control costs have made it possible to cut cash costs by between 10 and 14% in comparison with 2022, although they remain above pre-pandemic levels.

It should be stressed that 2024 was marked by the crisis in the Red Sea, requiring changes to shipping routes and prompting an upward tendency in freights worldwide. Despite these difficulties, Navigator succeeded in keeping its logistical costs on a downwards course, with a 6% reduction in relation to 2023.

Navigator remains focused not just on managing its variable costs, boosting efficiency in consumption of raw and subsidiary materials, by reducing specific consumption levels, in particular in pulp, paper and Tissue production, but also on making efforts to contain fixed costs.

Total fixed costs ended the period at a higher level than in 2023, due to the incorporation of the Navigator Tissue Ejea unit in the 2nd quarter of 2023 and Navigator Tissue UK in May 2024, the increase in the value of the bonus awarded by way of employee profit sharing, increased severance payments under the rejuvenation scheme and non-recurrent costs related to the acquisition of Accrol. However, when the new acquisitions are excluded, fixed costs, not including Personnel costs, rose by well under the rate of inflation for the year.

In this context, Navigator achieved EBITDA of 547 million euros in 2024 and an EBITDA / Sales margin of 26.2% (up 0.5 p.p. on 2023).

Financial Results benefit from interest rate hedging policy

Financial results showed a loss of 25.9 million euros (as compared to € -19.3 million in 2023), reflecting a decrease of 6.6 million euros YoY, due essentially to foreign exchange results. The forex effects include accounting (non-cash) effects of approximately 6.5 million euros, in particular the effect of the recognition in the year's results of part of the foreign currency translation reserve of our subsidiary Navigator North America, recycled to profit and loss insofar as it paid dividends to its parent company during the period.

Financing costs increased slightly, in view of the contracting of new borrowing with longer maturities amounting to approximately 330 million euros - as the Group renewed its funding so as to lengthen maturities, in a context of rising interest rates in the market. However, the average overall financing rate remains competitive, benefiting from the policy of hedging interest rate risk.

Financial investment income generated 5 million euros (vs. € 3.9 million in 2023), thanks to optimised management of surplus liquidity, both as regards the amounts placed, and the average returns achieved.

Pre-tax profits totalled 353 million euros (€ 347 million in 2023) and corporation tax payable stood at 66 million euros (€ 72 million in 2023), with a taxation rate for the period of 18.7% (20.8% in 2023). Net

income stood at 287 million euros (€ 275 million in 2023), benefiting from the reduction in the corporation tax (IRC) rate from 21% to 20%.

Free cash flow generation impacted by acquisition operation and by accelerated capex

Free cash flow generation has remained at a high level, although it was affected by acquisition of Accrol, now called Navigator Tissue UK. The company generated cash flow in 2024 of 23 million euros, in a context of heavy capital expenditure (€ 241 for the period).

Contracting of long term finance and management of liquidity and interest rate risks

Net debt in 2024 grew by 128 million euros in relation to 2023: in a period marked by large disbursements associated with the acquisition of Accrol (€ 153 million), dividends (€ 150 million) and capex (€ 241 million), this reflects robust capacity for cash flow generation. The Interest-Bearing Net Debt/EBITDA ratio stood at 1.13 (vs. 0.98 in 2023), consolidating the Group's financial strength profile.

Debt totalling 95 million euros was repaid over the year, whilst six new long-term facilities were contracted, for a total of 355 million euros, of which 330 million euros was drawn during the year (€ 230 million maturing in 7 years – bullet - and the remaining € 100 million in 6 and 5 years). Of that borrowing, 250 million euros is on a flat rate basis, either by hedging the interest rate with derivatives (interest rate swaps) or else directly contracted on that basis.

Navigator continues to enjoy ample liquidity, with 218 million euros in long term facilities available, an appropriate level of average debt maturity, with rationally staggered repayments, and approximately 65% of total debt tied to sustainability (vs. 46% in 2023) and 89% of total debt issued on a flat rate basis, directly or via hedging instruments, enabling us to maintain low financing costs in a scenario of sharply rising interest rates.

Despite the new facilities contracted, incorporating higher market interest rates, the average cost of debt issued at 31 December remained below 2.4%.

Navigator is committed to carrying on its business in full compliance 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.

Average Cost Debt Issued	Interest Rate
(Dec 2024)	Fixed	Floating
2.4%	89%	11%

Investment of € 241 million accelerates decarbonisation

In 2024, capital expenditure totalled 241 million euros (compared to € 187 million in 2023). Capital expenditure consisted mostly of projects aimed at maintaining production capacity, modernising plant and production facilities, achieving environmental improvements and efficiency gains, as well as structural and safety projects.

The most significant capex projects include: the new high efficiency Recovery Boiler in Setúbal, for collection and incineration of NCGs (odorous gases); Moulded Fibre in Aveiro; the new biomass-fuelled lime kiln in Figueira; conversion of the Setúbal and Aveiro lime kilns to burning biomass; new solar facilities in Figueira da Foz and Vila Velha de Ródão; Oxygen Delignification in Setúbal; the new Tower and Washing Presses in Aveiro; and the Biomass Boiler in Vila Velha de Ródão. There were 1,358 projects in total, of which 31 featured individual costs in excess of one million euros.

Navigator is moving ahead with all the projects to which it is committed under the Recovery and Resilience Plan (RRP), and these projects are proceeding to plan. For eligible investments under the RRP, an incentive rate of around 40% is anticipated, corresponding to close to 100 million euros, and the company received approximately 21 million euros in 2023 and 25 million euros in 2024.

FROM FOREST TO FUTURE

Twenty twenty-four was a year packed with initiative and success, reflecting our commitment to sustainable growth and diversification. Navigator's workforce today is stronger and more diverse, numbering around four thousand employees, with 40 different nationalities, 10 production plants in 3 countries (Portugal, Spain and the United Kingdom) and a forestry venture in Mozambique.

This year was marked by the acquisition of what is now called Navigator Tissue UK, followed by a successful process of integrating processes, promoting synergies and combining the high standards of our teams in Portugal, Spain and the United Kingdom. We first moved into the tissue segment in 2015, establishing a competitive edge with our technology; it is now our second largest business area. We closed the year with a 55% increase in the tissue sales volume, now accounting for 22% of total sales.

In packaging, the market has responded eagerly to our distinctive offering of sustainable solutions based on eucalyptus globulus fibre, as shown by the doubling of sales of the gKraft range and strong performance in low grammages for flexible packaging; this segment now represents 4% of total sales.

In the 4th quarter of the year, we started up production and marketing of moulded fibre packaging. This new avenue for growth falls within our responsible business strategy, whereby we are seeking to contribute to a more decarbonised society, harnessing the crucial role of well-managed planted forests in the transition from a linear fossil model, with no future, to a circular bioeconomy model, which is carbon neutral and nature-friendly.

We are strongly committed to these new avenues to growth through diversification. Working with the same unrivalled raw material, our R&D laboratory, RAIZ, has forged ahead with researching, developing and industrialising sustainable packaging solutions. We continue to develop new bioproducts and biomaterials, exploring business opportunities in the bioeconomy, in particular in eucalyptus essential oils, biocomposites, biofuels and synthetic fuels.

Responsible investment

Navigator's business results have been boosted by its recent international expansion and diversification of its asset portfolio, enabling the company to press ahead with capex projects of structural importance, in particular those geared to sustainability. Navigator has accordingly stepped up investment across its operations, in order to pursue its sustainability targets.

In 2024, capital expenditure totalled 241 million euros, more than half of which was allocated to projects geared to sustainability. These are investments with a positive impact on the profitability of our business, securing our long term growth, while we build a sustainable future for everyone.

Recent years have brought significant progress on our Decarbonisation Roadmap, thanks to an investment plan which has brought forward our interim targets for direct EETS emissions by three years. By 2026, we will achieve the goals originally set for 2029. By that year, emissions will be approximately 55% lower than in 2018, the baseline for the Roadmap.

Cut direct CO² emissions (EU-ETS) from industrial complexes by 86% Non-eligibility of CO² capture in production at PCC, after 2025 | Estimated emissions from Navigator Tissue Ejea included after 2026

The current volatility in the energy market, together with the level of prices for CO₂ licenses, now above 80 €/t, in addition to the continued reduction in the free allocation of these licenses in the CELE system, means that investment in decarbonisation is essential for business sustainability, by combining a transition to carbon neutrality with improved operational efficiency and the significant economic gains this all brings in the short and medium/long term.

Navigator's decarbonisation roadmap is ambitious and requires action in a huge number of locations and processes across the Company, involving around 23 initiatives, of which seventeen are supported by the RRP and one by the Innovation Fund - the European Union fund for climate policy, focused in particular on energy and manufacturing, with the aim of bringing on to the market solutions for decarbonising European industry and supporting its transition to climate neutrality. Significantly, the company has already completed eight of the initiatives to which it is committed. Of the others, fourteen have been approved and are in progress. Execution of the 23 initiatives is estimated to represent investment in excess of 350 million euros in the period 2019-2028.

In relation to the climate transition, energy efficiency projects have been implemented in recent years, at a cost of more than 8 million euros, enabling us to secure energy savings of around 100 GWh/year, and to avoid the emission of approximately 23,000 tons of CO₂. These measures have included improvements to the production of compressed air, optimisation of cooling systems, installation of LED lighting and improved thermal efficiency, bringing annual savings of 6 million euros in our energy costs. These initiatives have also made it possible to optimise consumption of energy from primary sources per ton of manufactured output.

In addition, Navigator remains committed to identifying and analysing new technological solutions which can be harnessed in new initiatives for inclusion in our Decarbonisation Roadmap. We are actively seeking to achieve the commitments made in the 2030 Agenda in relation to climate change, in particular by cutting scope 1, 2 and 3 emissions.

We are also working on water efficiency, with investment of more than 25 million euros to cut water use and promote recirculation of water. Since 2019, specific use of water in operations has fallen by around 13%, a significant step towards achieving the target of a 33% reduction by 2030.

Navigator is likewise committed to investing strategically in digital technology and cybersecurity so as to ensure that its operations are resilient, efficient and innovative, evolving to face the challenges ahead in its businesses, with competitive advantages and promoting sustainable development.

In the past two years, the company has worked on more than 30 digital projects, using Artificial Intelligence, Machine Learning and Artificial Vision, in different business areas and segments, bringing rewards in terms of lower production costs, optimisation of processes, customer satisfaction and workforce productivity. Leading investments have included: Optimisation of logistical management; in the pulp segment, Advanced Process Control (APC), seeking to improve quality and process stability, and to optimise consumption of chemicals; in the UWF segment, the project to control excess grammage and variability of whiteness, resulting in lower levels of consumption; and in the tissue segment, the project to optimise paper grammage, reducing variability and fibre consumption.

Projects are also under way in the forestry sector, working in particular to facilitate access to raw material. With a steady focus on our people, Navigator is also developing a series of tools using Artificial Intelligence, in order to automate tasks, mitigate risks and boost both productivity and worker motivation.

Our commitment to Health and Safety remains firm: we are aware that achieving excellence in this area is an ongoing process, which requires constant vigilance and daily dedication. We continue focused on our "Mission Zero" strategy, and especially on training and skills development, adoption of best practices and continuous improvement in our management systems. Sustained investment - in the past five years, this has totalled around 27 million escudos - has generated concrete results, making our workplaces even safer and promoting even more responsible behaviour. In 2024, we achieved our lowest ever accident rate, down by 40% since 2020. We see this as a historic milestone, reflecting the progress we have made and the company's stronger safety culture.

On 21 November, we celebrated the 1st anniversary of our Forestry Producers Club. With the slogan "Working Together for the Forest", the Navigator Forestry Producers Club supports our forestry sector partners, on a collaborative basis, in implementing active and responsible forestry management. In the first year, the Club succeeded in attracting 385 members by the end of 2024, a number which has grown further in the early weeks of 2025, together representing turnover in the sector of around 600 million euros and a workforce of more than 3,100. Membership benefits include financial solutions, support for modernising equipment and exclusive discounts which help to cut costs.

These arrangements already include strategic partnerships negotiated by Navigator with Crédito Agrícola, Galp and Interprev. With these agreements, members of Navigator's Forestry Producers Club will have access to: (i) preferential financing terms; (ii) exclusive discounts for refuelling at Galp filling stations and (iii) a package of occupational health and safety solutions, available exclusively to members, helping to reduce their operating and financial costs.

The aim of the club is to bring together the community of forestry producers, suppliers and service providers, contributing to environmental and social gains: promoting adopting of good practices that minimise environmental impacts, reduce the fire risk, increase CO² sequestration and promote biodiversity. At the same time, the initiative seeks to bring new life to the rural economy, by combating desertification, creating jobs, and helping companies and local people to stay and prosper.

Over seven decades, we have always been a company open to new ideas, demonstrating an unrivalled ability to work with emerging realities and new market opportunities, through innovation and the highest standards

in every sector. It is this capacity that has enabled us to cope with change and to face the future with confidence.

Combining broad experience of the sector with a forward-looking approach, Navigator continues to be a pioneer in sustainable practices aligned with global trends and consumer demands. This diversified portfolio, rooted in a tradition of excellence and innovation, positions Navigator as a leader in sustainability-led growth and value creation.

External recognition of our commitment to sustainability

Our continuous investment in improving ESG performance has also been reflected in positive assessments from independent rating agencies.

In February 2025, Navigator was again named by CDP – Disclosure Insight Action as a leader in the fight against climate change, with an "A" rating in the CDP Climate Change questionnaire, placing us in the A List for Climate, with continued leadership status.

On 12 July 2024, Navigator renewed its rating as a low risk company for investors when it was named a "2025 ESG Industry Top Rated Company" in the ESG Risk Rating by Sustainalytics, one of the world's best respected ESG rating agencies. With a score of 11.6 in this ranking, Navigator tops the list of 85 global companies in the Paper & Forestry industries cluster with the lowest ESG risk for investors. It was also placed top out of 63 companies in the Paper & Pulp subset, and is in the top 5% of more than 16,200 companies worldwide in every sector of the economy.

OUTLOOK

Having triumphed over initial uncertainties and expectations in 2024, just as it did in 2023, Navigator is again faced in 2025 with significant challenges and very little insight into what the year holds. The wars in the Middle East and Ukraine, uncertainty about the effects of economic and commercial policies worldwide and the lack of clarity as to the future course of monetary policy are all negative factors affecting the business sentiment of major players.

Prices in the sector, and specifically in pulp business, are expected to rally in China and Europe, as has already started to happen. On the supply side, the ramp-up of projects in 2024 and 2025 will increase the availability of pulp on the market, and so influence the market balance (Operating Rate). On the demand side, levels of pulp consumption in China are expected to recover. In Europe, demand should remain relatively stable in relation to 2024.

In the paper segment, the pace of new orders is expected to accelerate, as is already being felt. On the supply side, there is the potential for further temporary or permanent reductions in capacity in the paper sector. Already, in the first quarter of 2025, approximately 430 thousand tons/year of UWF capacity (close to 7% of European capacity) has been taken off the market, due to the closure of a mill in Germany, eliminating 280 thousand tons/year, and of another in Italy, removing a further 150 thousand tons, in line with closure announcements last year.

In China, new paper and tissue capacity is expected to come online, but given the low capacity utilisation rate in the Chinese industry and rising pulp prices expected in the next 2-3 year cycle, the possibility of some streamlining of supply cannot be ruled out, as indeed happened at the end of the year when a major player discontinued production.

In the tissue segment, demand continues to be lively, and estimates suggest it will remain healthy. 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 that of Navigator Tissue UK in 2024.

Cash costs remain above pre-pandemic levels, despite the decrease over the last two years. This resilience will continue to underpin the maintenance of paper and tissue price levels in Europe and in the international markets in which we operate.

Navigator remains focused on operational efficiency, managing its fixed and variable costs across its ventures, and also on building up productivity and energy efficiency, ensuring the sustainability of its operations. At the same time, business diversification and the development of new products remain our main priorities, especially in the tissue and packaging segments.

PROPOSED ALLOCATION OF PROFITS

Considering Navigator's performance in 2024, the Board of Directors will propose to the General Meeting of Shareholders distribution of dividends of 175 million euros, corresponding to 0,24606 euros per share. The Board of Directors will also propose employee profit sharing for the period of up to 19 million euros.

The proposed distribution of dividends thus results in an additional dividend of 75 million euros, corresponding to 0,10545 euros per share, after the 100 million euros distributed in advance on 14 January 2025. A proposal of employee profit sharing of up to 16 million, after the 3 million euros distributed in advance in December.

Lisbon, 13 February 2025

Conference Call and Webcast for Analysts and Investors

Date: Tuesday, 18 February 2025

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

Link to the Conference Call webcast:

https://streamstudio.world-television.com/1076-1695-41153/en

Link for advance registration for telephone access to Conference Call:

https://grid.trustwavetechnology.com/navigator/register.html

FINANCIAL STATEMENTS

The Navigator Company, S.A. Consolidated Income Statement on December 31st 2024 and 2023

Amounts in Euro	2024	2023
Revenue	2 088 276 553	1 953 242 900
Other operating income	100 793 477	80 315 713
Changes in the fair value of biological assets	(1 016 252)	(6 907 896)
Costs of goods sold and materials consumed	(880 548 487)	(848 515 663)
Variation in production	(3 499 808)	(23 719 799)
External services and supplies	(500 867 221)	(422 373 519)
Payroll costs	(203 780 154)	(172 252 203)
Other operating expenses	(52 595 670)	(58 241 591)
Net provisions	(32 178)	1 006 041
Depreciation, amortisation and impairment losses in non-financial assets	(167 860 464)	(136 198 800)
Operating results	378 869 796	366 355 183
Financial income	17 376 371	14 033 284
Financial expenses	(43 215 938)	(33 353 202)
Net financial results	(25 839 567)	(19 319 918)
Profit before tax	353 030 229	347 035 265
Income tax	(66 046 016)	(72 086 123)
Net profit for the period	286 984 213	274 949 142
Attributable to Navigator Company's Shareholders	286 948 195	274 923 820
Attributable to non-controlling interests	36 018	25 322

The Navigator Company, S.A. Consolidated Statement of Financial Position on December 31st 2024 and 2023

Amounts in Euro	2024	2023
ASSETS
Non-current assets
Goodwill	422 627 337	381 496 008
Intangible assets	119 600 687	46 198 240
Property, plant and equipment	1 415 945 085	1 233 223 791
Right-of-use assets	98 651 166	65 044 454
Biological assets	115 250 198	115 591 979
Investment properties	360 170	463 404
Others financial assets	1 347 318	-
Receivables and other non-current assets	12 424 754	44 399 506
Deferred tax assets	59 110 851	23 653 501
	2 245 317 566	1 910 070 883
Current assets
Inventories	303 198 367	286 490 362
Receivables and other current assets	496 698 621	424 740 973
Income tax	20 621 461	18 385 534
Cash and cash equivalents	286 628 866	169 464 967
	1 107 147 315	899 081 836
Total assets	3 352 464 881	2 809 152 719
EQUITY AND LIABILITIES
Capital and Reserves
Share capital	500 000 000	500 000 000
Currency translation reserve	13 829 407	5 309 023
Fair value reserves	12 011 454	12 898 767
Legal reserve	100 000 000	100 000 000
Other reserves	(5 960 836)	3 481 014
Retained earnings	548 900 068	418 633 191
Net profit for the period	286 948 195	274 923 820
Anticipated Dividends	(99 999 451)	-
Equity attributable to Navigator Company's Shareholders	1 355 728 837	1 315 245 815
Non-controlling interests	360 347	327 018
Total Equity	1 356 089 184	1 315 572 833
Non-current liabilities
Interest-bearing liabilities	726 229 071	560 085 341
Lease liabilities	98 627 669	62 848 761
Deferred tax liabilities	135 938 603	95 856 013
Provisions	28 371 069	27 837 286
Payables and other current liabilities	116 443 330	114 670 790
	1 105 609 742	861 298 191
Current liabilities
Interest-bearing liabilities	177 748 681	99 259 122
Lease liabilities	13 109 231	7 148 060
Payables and other current liabilities	658 569 674	503 046 782
Income tax	41 338 369	22 827 731
	890 765 955	632 281 695
Total Liabilities	1 996 375 697	1 493 579 886
Total Equity and Liabilities	3 352 464 881	2 809 152 719

ANNUAL RESULTS 2024 23 | 22