The Navigator Company

Annual Report • Jun 25, 2024

REPORT – FIRST QUARTER 1 | 63

PERFORMANCE 1st QUARTER 20243
st Quarter Analysis (vs. Q4 2023 and vs. Q1 2023)3 1
LEADING INDICATORS4
ANALYSIS OF RESULTS 5
The printing and writing papers industry5
Pulp Market 6
Growth and strong performance in Tissue business7
Packaging - From Fossil to Forest – investment in sustainability, innovation and transformation8
Power Output of 381 GWh, of which 75% was from renewable energy sources8
EBITDA of € 133 million due to cost management, growing demand and rising prices 9
Financial Results benefit from interest rate hedging policy 9
Free cash flow generation of €46 million 10
New green Financing consolidates Sustainable Financial Management 10
Capital expenditure of € 41 million 11
OUTCOME OF THE OFFER FOR ACCROL 12
WE CREATE VALUE BY PLANTING THE FUTURE 12
OUTLOOK 14
CONSOLIDATED FINANCIAL STATEMENTS 16

PERFORMANCE 1st QUARTER 2024

At the start of 2024, demand for pulp and paper continued on the upward course that had been observed in the second half of 2023. In the UWF market, the process of destocking, which took up much of the previous year, has come to an end, and apparent demand at manufacturers is now a more realistic reflection of end demand, especially in Europe. This has driven demand for pulp in the region, added to robust demand from China, due to new paper capacity starting up in the second half of 2023.

Rising benchmark prices for pulp and paper were another key feature of the 1st quarter, sustained by the dynamics of demand as well as by significant restrictions on supply, caused in particular by low stocks at the start of the year, strikes in Finland and logistics constrains in the Red Sea.

Navigator remains committed to its sustainable investment and innovation plans in all the segments in which it operates.

As part of our strategy of diversification and growth, on 22 March we launched a public all-cash firm offer (Offer) for Accrol Holdings Plc (Accrol), a leading player in the UK tissue market. We have also pressed ahead with diversifying our Packaging business, and in the second half of 2024 we will start up an innovative unit for integrated production of moulded eucalyptus cellulose, designed to replace singleuse plastic packaging in the food service and food packaging markets. From a medium-long term perspective, we are still looking into the attractiveness of investing in green fuels, both biofuels and efuels, or synthetic fuels. And our R&D programme is moving forward to explore and develop new bioproducts from Eucalyptus globulus, with a vast range of applications in different industries, such as the automobile sector, textiles, pharmaceuticals, the food industry and even for the defence sector.

As an integrated producer of Forests, Pulp, Paper, Tissue, Packaging and Energy, Navigator has consistently demonstrated its resilience, adjusting quickly to market conditions, successfully protecting its margins and delivering results, as well as pressing ahead with its strategy of investment, growth and diversification.

1st Quarter Analysis (vs. Q4 2023 and vs. Q1 2023)

• Turnover stood at € 536 million, up 9% on the 4th quarter and up by 7% YoY;
• EBITDA totalled € 133 million (up 7% on the 4th quarter and 2% on the 1st quarter of 2023), with an EBITDA margin of 25%;
• The volume of paper and packaging sales stood at 354 thousand tons (up 10% on the 4th quarter and 29% on the 1st quarter of 2023), whilst in value, sales grew by 12% in relation to the previous quarter, and 9% YoY;
• The volume of pulp sales stood at 110 thousand tons (up 20% both on the 4th quarter and on the 1st quarter of 2023), in a quarter when less pulp was available for sale on the market due to incorporation into paper, packaging and tissue;
• The volume of tissue sales stood at 38 thousand tons, down by 6% in relation to the previous quarter, due to lower production availability, which affected sales of reels, and up by 59% YoY. The YoY leap in sales volume can be attributed to Navigator's strategy of diversification, with the acquisition of what is now Navigator Tissue Ejea, positioning the group as Iberia's second largest tissue producer;

• Packaging segment order books tended to recover, 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.
• The outcome of the Offer to acquire the entire share capital of Accrol was announced yesterday, after the General Meeting. The Offer was approved at the Court Meeting with 99.12% of the votes and the connected resolution was passed at the General Meeting with 99.17% of the votes cast, enabling the acquisition of 100% of the company's share capital; Navigator expects to become effective upon May 24th.

	Q1	Q1		Q4
Million euros	2024	2023	Q1 24/Q1 23 (8)	2023	Q1 24/Q4 23 (8)
Total Sales	536,4	501,2	7,0%	492,7	8,9%
EBITDA (1)	133,3	130,7	2,0%	125,0	6,6%
Operating Profits (EBIT)	97,7	99,2	-1,5%	88,7	10,1%
Financial Results	- 8,8	- 2,7	-229,2%	- 3,6	-143,0%
Net Earnings	64,1	71,7	-10,6%	74,2	-13,6%
Cash Flow	99,7	103,1	- 3,4	110,5	- 10,8
Free Cash Flow (2)	46,3	30,8	15,4	59,9	- 13,6
Capex	40,7	41,7	- 1,0	44,4	- 3,7
Net Debt (3)	443,6	351,4	92,2	489,9	- 46,3
EBITDA/Sales	24,9%	26,1%	-1,2 pp	25,4%	-0,5 pp
ROS	18,2%	19,8%	-1,6 pp	18,0%	-3,2 pp
ROCE (4)	21,5%	23,8%	-2,4 pp	20,6%	0,9 pp
ROE (5)	19,0%	22,1%	-3,1 pp	23,0%	-4,0 pp
Equity Ratio	47,5%	44,4%	3,1 pp	46,8%	0,7 pp
Net Debt/EBITDA (6)(7)	0,88	0,47	0,41	0,98	-0,10

LEADING INDICATORS

1.Operating results+ depreciation + provisions;

2.Change in net debt + dividends + purchase of own shares

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

2. 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 Q1 2024 of 1.02; Net Debt / EBITDA Q1 2023 of 0.56; 8.Change in figures not rounded up/down

ANALYSIS OF RESULTS

The healthy results recorded in the first quarter can be explained by the focus on managing costs, growing demand and sales volume for paper and tissue and rising prices for pulp, printing paper and tissue, as well as the sales strategy and diversification of products and markets.

The printing and writing papers industry

The upward course of demand observed in the second half of last year continued into early 2024. Demand was essentially driven by restocking in the supply chain, especially in Europe.

Mt, YtD

Source: PPPC, February (2024 vs. 2023)

Apparent global demand grew by 1.1% in the 1st quarter (February), with stronger demand for UWF (up 1.5%), in contrast to CWF papers, which were down by 1.1%. Demand for paper produced from mechanical pulp grew by 2.2%.

In Europe, apparent demand for UWF paper grew by 10.4% this quarter, with the folio segment as the top performer, at 20.4%, followed by cutsize office paper (up 9.6%) and reels (up 4.6%). This was due essentially to restocking throughout the supply chain and to significant restrictions on supply, caused by logistical constraints in the Red Sea and at Finnish ports.

After a recovery in the pace of new orders in the second half of 2023, this tendency continued in the 1st quarter of 2024, with an orders/capacity ratio of 90% (vs. 70% in the 1st half of 2023 and 80% in the 2 nd half of 2023).

In the United States, demand dropped by 1.3%. Apparent UWF consumption in other world regions grew by 0.7% (February), with China recording an impressive 12.2% YoY (February) (CAGR 5.8% 21- 24).

The benchmark index for office paper prices in Europe, PIX A4 B-copy, recorded an average in the 1st quarter of 2024 similar to that for the previous quarter, 1,097€/t. The index eventually ended the quarter at 1,105€/t, up by 1% from the start of the year (1,093€/t). Average sales prices in Navigator's segment performed strongly, up by around 2%. Significantly, from November - when prices in Europe and in overseas markets started to move upwards again - to April, Navigator's UWF price increased by around 3% in Europe, 9% in overseas markets and 5% to the total sales mix. Implementation of the last price increase announced, which started in April, is expected to be concluded by May/June.

Navigator's sales of paper and packaging totalled more than 354 thousand tons in the quarter, representing an increase of 10% over the previous quarter and of 29% over the same quarter in 2023. Paper and packaging sales grew in value by 12% in relation to the previous quarter, and 9% YoY.

This has highlighted the strength of our business model, based on differentiation, Premium products and own brands in the various markets where we operate. Mill brands represented close to 76% of the quarter's sales (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 57% (compared to an average of 53% in the period 2012-2023). 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 first quarter of 2024 ended with the benchmark index for hardwood pulp (PIX BHKP in dollars) rising to 1,242 USD/t. Since the start of the year, pulp prices have grown by approximately 22% and everything suggests they will continue upwards, at least over the next quarter. Prices in China mirrored the developments in Europe, reaching 684 USD/ton at the end of the quarter, up 5% since the start of 2024.

The dynamics of supply and demand were crucial in sending prices upwards. China remains the great driving force behind the recovery, thanks to new packaging paper capacity, which started up in the 2nd half of 2023 (0.7 Mt of UWF paper, 1 Mt of Packaging and 1 Mt of Tissue), although the developed economies have also presented growth in hardwood demand due to the performance of downstream markets, in particular in Europe (up 4.2% in February).

Performance at end consumers of cellulose pulp was better than expected, especially in the printing and writing paper industry, where order books grew substantially. On the supply side, logistical constraints in the Red Sea, constraints on supply in Canada, the strike in Finland and the unavailability of output from one of the largest pulp mills of a leading player, also in Finland, due to an incident at the production unit, put upwards pressure on long fibre prices, adding further to the substitution of long fibre by short fibre.

At the same time, further pressure on prices has stemmed from the structural increase in the costs of pulp production, which continue to incorporate very significant increases in wood, chemicals and manpower costs in relation to pre-pandemic levels. These rising costs are having a more severe impact on producers outside Europe, in particular in Latin America.

In this context, global demand grew YoY by 6.5% in bleach chemical pulp (BCP), 8.9% in hardwood pulp (HW), and 14.4% in eucalyptus pulp (EUCA), most significantly in China (+9.4% BCP, +16.1% HW, +35.7% EUCA) and in Europe (+3.9% BCP, +4.2% HW, +2.1% EUCA).

The year started with stocks at low levels, above all at ports in China and Europe, but also at manufacturers. The level of stocks at European ports remains below the average for the past five years. In China, stocks at ports increased over the quarter, explained by the fact that much of the volume traded in the second half of 2023 has now arrived in the 1st quarter, somewhat behind schedule. Late deliveries have also helped sustain higher prices and price increases.

As a consequence, pulp sales for the period stood at 110 thousand tons, representing an increase of 20% over the previous quarter and YoY, whilst the value of sales was up 28% and down 2% in relation to the same periods.

Growth and strong performance in Tissue business

Demand for Tissue paper showed positive dynamics at the start of 2024. After a period of stock reduction in the first months of 2023, the first two months of 2024 saw growth of 2% in Europe.

Navigator's Tissue sales (finished products and reels) totalled 38 thousand tons in the 1st quarter, representing growth of 59% over the same period in 2023 and a reduction of 6% in relation to the previous quarter, due to lower production availability, which affected sales of reels. In value, sales grew by 41% YoY, and there was a downward correction of 4% in relation to the previous quarter.

The YoY figures were boosted by the integration of the Navigator Tissue Ejea mill, as from the second quarter, which, as well as contributing to growth in sales, expanded the customer base and generated significant gains by unlocking synergies. It has also permitted cross-selling, which has further strengthened commercial relations with clients.

In the 1st quarter of 2024, international sales accounted for 71% of turnover in Tissue business. The Spanish market took the largest share, with 42% of sales, followed by France, with 23%, and the UK, which accounted for 4% of sales. Finished products represented 94% of total sales, and reels 6%. In terms of client segments, At Home or Consumer (retail) business has grown in importance, currently accounting for around 80% of sales, whilst Away-From-Home and wholesalers account for the remaining 20%. Attention is drawn to Navigator's balanced and diversified customer portfolio (its largest client represents around 10% of total sales).

Navigator's focus on innovation and differentiation continues to be welcomed by customers, with sales of mill brands growing by 11% YoY in the first quarter of 2024. Significantly, in the retail segment,

where retailers' own brands dominate, with 70 to 80% of Tissue sales, Navigator's mill brands grew by 14% YoY. As part of the success of our mill brands, sales of innovative products continued to experience rapid growth, up 11%, once again strongly driven by retail business, where growth stood at 25%.

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

After a challenging year in 2023, with a drop in business in several segments, the European market has started to show signs of recovery in 2024. European Sack and Kraft deliveries grew by 14% in relation to the same period last year.

In this context, Navigator's Packaging business - still consolidating its position in the international market - enjoyed stronger and more consistent demand in the main segments, at the same time as a positive impact can already be seen from the move into several new segments (above all, flexible packaging), in the early months of the year. The process of trials and market placement, still under way, consists of a large scale approach to new clients, backed up by more than 250 market trials to date, in a commercial operation 100% based on Navigator's 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, aimed respectively at the markets for Bags (retail, consumer and industrial bags), Flexible Packaging (serving a vast array of end applications in a number of industries, such as the agro-food sector, restaurants and pharmaceutical products), and boxes (corrugated cardboard boxes for value-added products and food packaging, including cardboards for producing paper cups and food trays). The innovative introduction of the properties of eucalyptus fibre has been crucial in securing the wide acceptance and recognition these products already enjoy in the market.

As part of the diversification of packaging business, progress has continued as planned in the project for integrated production of eucalyptus-based moulded cellulose components, designed to substitute single-use plastic packaging in the food service and food packaging market, and production is planned to start up in the 2nd half of 2024, under the gKraft™ Bioshield brand. The facility will have production capacity for approximately 100 million units a year, making it one of the largest in Europe and the first such integrated facility in southern Europe, moving into a fast growing, high-potential market. Operations will start with 4 products for the food sector, and the facility offers production flexibility and scalability in order to exploit the various opportunities opening up for substituting plastics.

Power Output of 381 GWh, of which 75% was from renewable energy sources

First quarter power sales totalled 33.3M€, down by approximately 32% on the same period in 2023 and by 14% on the previous quarter.

This reduction is explained essentially by: (i) reduction in the electricity market price (OMIE) which in the first quarter averaged 44.4 €/MWh in the first half of the year, in contrast to the figure of 97.9 €/MWh in the same period in 2023; and (ii) the fact that the combined cycle natural gas power station in Setúbal is operating with only one generator set, when last year it operated with two sets, given that

evolution of the price differential (electricity and natural gas) means that operating the second set is not economically viable at present.

On the other hand, these lower electricity sales are matched by lower acquisition costs for natural gas and reduced use of fossil energy, as well as lower acquisition costs for power purchases 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.

EBITDA of € 133 million due to cost management, growing demand and rising prices

Over the course of the quarter, Navigator remained focused not just on managing its variable costs, improving its negotiation of purchase prices and optimising consumption, especially of fibre (including wood) and chemicals, but also on continued efforts to contain fixed costs.

As a result, there was another sharp reduction in cash costs, which were cut, in relation to the same period in 2023, by between 9% and 16% in all pulp and paper segments (printing and writing, tissue and packaging). In relation to the previous quarter, costs continued to be brought down in the Paper and Tissue segment, with reductions of between 4% and 5%, whilst costs in the pulp segment held steady.

It should be stressed that the 1st quarter of 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 maritime freights on a downwards course.

Total fixed costs ended the period 5% higher than in the same period in 2023, due to the inclusion of the Tissue Ejea unit and increased disbursement of severance pay as a result of rejuvenation.

In this context, Navigator achieved EBITDA of € 133 million in the first quarter (vs. € 131 million in the same period last year and € 125 million in the preceding quarter) with an EBITDA margin of 25% (down 1.2 p.p. YoY; down 0.5 p.p. on the preceding quarter). Earnings were boosted by increased volumes and decreasing variable costs, although the reduction in costs was not enough to offset all of the reduction in sales prices, specifically in comparison with the same period in 2023, bringing the EBITDA margin down by 1.2 pp.

Financial Results benefit from interest rate hedging policy

Financial results showed a loss of € 8.8 million (as compared to € 2.7 million in the same period in 2023 and € 3.6 million in the preceding quarter), up by € 6.1 million YoY.

This was caused by an extraordinary (non-cash) effect of € -4.2 million and a foreign exchange loss, in contrast to the gain recorded in the first quarter of 2023. Financing costs remained stable, despite the rise in interest rates, thanks to the policy of hedging interest rate risk.

Pre-tax profits totalled € 89 million (vs. € 97 million in Q1 2023 and € 85 million in the preceding quarter) and the corporation tax burden for the period was € 25 million (in line with the same period

last year and vs. 11 million in the preceding quarter), with a tax rate for the period of 27.9% (vs. 25.8% in Q1 2023 and 12.9% in Q4 2023). Net income stood at € 64 million (vs. € 72 million in Q1 2023 and € 74 million in Q4 2023).

Free cash flow generation of €46 million

Free cash flow generation in the quarter stood at € 46 million (vs. approximately € 31 million in the same quarter in 2023 and approximately € 60 million in the preceding quarter).

Cash generation has remained high, even with the moderating effect of our continued policy of supporting the liquidity of our partners (visible in lower supplier balances) and despite the amount disbursed for capex projects in the period.

New green Financing consolidates Sustainable Financial Management

At the end of the quarter, net debt stood at € 444 million euros. The Interest Bearing Net Debt/EBITDA ratio stood at 0.88, further consolidating the financial strength displayed by the Group.

Debt of € 61 million was repaid over the quarter and a long-term loan (7 years) of € 30 million, with financial terms tied to the company's ESG performance. Navigator has also contracted long term finance 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.

Average debt maturity therefore remains appropriate, with well-balanced maturities, and close to 44% of total debt tied to sustainability and 92% of total debt issued on a fixed rate basis, directly or via interest rate swaps, enabling us to maintain low financing costs in a scenario of sharply rising interest rates.

Unused long term credit facilities currently total € 268 million.

Capital expenditure of € 41 million

Capital expenditure totalled € 41 million in the 1st quarter of 2024 (compared to € 42 million in Q1 2023 and € 44 million in the preceding quarter), of which approximately € 13 million was classified as environmental or sustainability (ESG) investment, accounting for 32% 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, the new Tower and Washing presses in Aveiro, the new biomass-fuelled lime kiln in Figueira, conversion of the Setúbal lime kiln to burning biomass and the new solar facility in Figueira da Foz.

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.

The Company is therefore pressing ahead with innovation programmes to boost its operational efficiency and programmes to develop sustainable packaging solutions, as well as investing in Decarbonisation and improving its environmental impact.

At the same time, Navigator's sound financial position and capacity mean it can also consider strategies for growth, in particular opportunities for debottlenecking in its traditional businesses, as well as for growth in the tissue, packaging and energy segments.

OUTCOME OF THE OFFER FOR ACCROL

In the 1st quarter of 2024, Navigator launched an Offer to acquire the entire issued and to be issued share capital of Accrol. Accrol is the leading operator in the tissue converting segment in the United Kingdom, producing rolls of own-brand toilet paper, kitchen roll and paper tissues for the main retailers in that country.

The Offer follows the Group's diversification strategy. Navigator sees Accrol as an attractive opportunity to enter the British market, through the acquisition of a leading company in the tissue paper transformation sector, with competitive advantages, complementary values and strong alignment with Navigator.

The outcome of the Offer was announced yesterday, following the General Meeting of Accrol. The Offer was approved at the Court Meeting with 99.12% of the votes and the connected resolution was passed at the General Meeting with 99.17% of the votes cast, enabling the acquisition of 100% of the company's share capital. The Offer values Accrol's equity at approximately £130.8 million (circa €152.1 million). Considering Accrol's half-year results, as of October 31, 2023, financial debt totals £25.5 million (circa €29.6 million) or £57.4 million pounds (circa €66.7 million) including IFRS16.

Acquisition of Accrol will position Navigator more strongly in the Western European tissue market. Navigator envisages that the combined group will generate sales of more than € 580 million in this segment, with the market in the United Kingdom contributing around 50% of the total volume of tissue business.

The Offer is expected to become effective upon May 24th .

WE CREATE VALUE BY PLANTING THE FUTURE

In 2024, the United Nations dedicated the International Day of Forests (21 March) to "Forests and innovation: new solutions for a better world", highlighting two aspects of innovation in forestry: biomaterials, making use of the powerful solutions contained in the "chemistry of trees", and technologies that bring these and other solutions into our lives.

Governance / Business Innovation and Transformation

Navigator has put Portugal's forests, and its eucalyptus in particular, on the map of the global circular bioeconomy. Science and technology are showing the way to a whole new generation of products and solutions obtained from wood, biomass and their components, things which were previously only possible from fossil resources.

In 1996 The Navigator Company set up its own R&D centre for the forestry and paper sector (RAIZ), in partnership with three Portuguese universities: Aveiro, Coimbra and Lisboa.

The research conducted by RAIZ covers the whole value chain: i) Forestry R&D, in order to boost forest yields and resilience by developing new genetic materials (Eucalyptus globulus or hybrids of other eucalyptus species) and ii) Technological R&D, which focuses its activity on process optimization, the

efficient use of resources such as wood and water, environmental compliance, the valuation of process by-products, the development of new cellulose fibre-based products, as well as new bioproducts.

In the past 10 years, RAIZ has submitted 42 patent applications, including 36 in the last 5 years (2020- 2024), establishing itself as one of the most innovative organisations in Portugal.

The company is beating a new path to the future, by concentrating on reducing the use of fossil-based plastics and boosting the biodiversity of forests as a central plank of its strategy. We are committed to these new routes to growth, consolidating a forest-based bioeconomy through research and development, innovation and our existing industrial base.

Navigator has devoted its energies to several aspects of innovation in forestry, involving itself in multidisciplinary projects with a range of partners across different fields and fostering innovation and business transformation. As an example of this, we will single out just one of many pioneering projects in which we are involved, the smart packaging project: GELA.

GELA: a paper label with the power to cool drinks in just a few minutes

GELA is a new label based on cellulose fibres which can significantly shorten the time in the refrigerator usually needed to cool a drink.

A label with GELA technology makes it possible to cool a drink and enjoy it at the right temperature after just 12 minutes. Without the label, because the glass is a poor thermal conductor, the cooling period under similar conditions is 40% longer.

The GELA technology incorporated in this label points to the feasibility of developing solutions for labels, which can be extended to packaging, with the potential for thermal control. This can include cooling from high temperatures or reducing the freezing time for products.

The GELA technology uses passive solutions enabled by cellulose-based structures. These are scalable and therefore competitive in terms of production costs. The involvement of industrial partners in identifying use cases and industrialisation potential means that this forest-based innovation can be tested on a pilot scale within a reduced timeframe, paving the way for market placement of a solution that is innovative and competitive in the context of the bioeconomy and circularity.

GELA technology is being developed and demonstrated in prototype labels under the "From Fossil to Forest" Agenda, with funding from the Recovery and Resilience Plan and the EU's Next Generation programme. The consortium involved in "From Fossil to Forest" is led by The Navigator Company and includes 27 institutions working in different areas. Navigator has a number of partners for the paper biosensors area, including the AlmaScience collaborative laboratory (responsible, in partnership with RAIZ and the Superbock Group, for developing solutions to monitor temperature, with paper-based applications, and for GELA).

It accordingly pays keen attention to the 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.

External recognition of our commitment to sustainability

In February 2024, Navigator was again singled out as a leader in combating climate change, and also in forestry management, with a score of "A-" awarded by CDP Disclosure Insight Action.

OUTLOOK

In recent quarters, economic growth has slowed worldwide, in particular in the 1st quarter of 2024 with the US growing less than expected and growth in Europe remaining sluggish. Forecasts for global growth are cautious for 2024. The current geopolitical tensions, which have created a highly complex situation in industrial and logistical operations, as well as the normalisation of monetary policies, could lead to increased volatility in international markets, including the financial, energy, logistical and commodity markets, making it difficult to forecast market trends in the near future.

In this context, in pulp segment, for the 2nd quarter, the favorable evolution of demand is expected to continue, as already observed since the second half of 2023. However, in the current context, caution is suggested regarding market developments for the rest of the year. The volatility of the Chinese market, the main driver of short fiber consumption, and the start-up in 2024 of a new mill in Latin America (2.6Mt/year), which will be one of the 3 largest short fiber pulp mills in the world (which introduces more uncertainty regarding the supply/demand balance), reinforce this sense of caution.

In the paper segment, the second quarter is expected to bring a slowdown in the growth of orders, which has been experienced since September 2023, and most noticeably in the first quarter. In 2024, different events around the world could however stimulate paper consumption: i) around 50% of the world population (representing around 60% of global GDP) have had or will have elections in their countries; ii) the Olympic Games in France and iii) the European Cup in Germany. Nonetheless, the global geopolitical situation, poor economic growth, especially in Europe, and the highly uncertain period we are living through, could have an impact on the level of demand. On the other hand, the reduction in supply in Europe and strong pressure from costs - which, despite having come down from the exceptional peak reached in the second half of 2022, are expected to remain high and eventually stabilise at levels well above those from before the pandemic - will continue to keep paper prices high in Europe and in the international markets in which we operate, although it is unlikely they will return to record levels.

Regarding capacity, there may be scope for further temporary or definitive capacity reductions in the paper sector, in line with strategy decisions or due to profitability issues caused by 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 addition to which a mill in Ashdown in the USA is expected to close in June, which will take some 170 thousand tons of UWF production capacity off the market.

In the tissue paper segment, demand continues to rise at interesting levels, and growth of 2.6% is estimated for Europe in 2024 (Numera). 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 Accrol in 2024.

Despite the Group's efforts and its commitment to cutting costs, both by optimising specific consumption levels and by negotiating prices for logistics, raw and subsidiary materials and energy, these prices 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.

The range and quality of our differentiating brands and products, Navigator's sustainable business, the scale of our operations and our financial strength support our resilient business model, which has enabled us to deliver consistent results, even in adverse market conditions.

Lisbon, 16 May 2024

Conference Call and Webcast for Analysts and Investors

Date: Tuesday, 21 May 2024

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

Link to the Conference Call webcast:

https://streamstudio.world-television.com/1076-1695-39728/en

Link for advance registration for telephone access to Conference Call:

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

Consolidated Financial Statements

Condensed consolidated income statement

Amounts in Euro	Note	3 months 31-03-2024	3 months 31-03-2023
Revenue	2.1	536,410,280	501,159,485
Other operating income	2.2	18,160,518	14,368,110
Fair value adjustments of biological assets	3.8	2,072,329	(602,190)
Costs of goods sold and materials consumed	4.1	(224,886,646)	(254,355,100)
Variation in production	4.1	(15,518,788)	27,368,170
External services and supplies	2.3	(115,015,197)	(95,559,176)
Payroll costs	7.1	(49,842,587)	(44,549,310)
Other operating expenses	2.3	(18,075,779)	(17,128,963)
Net provisions	10.1	-	-
Depreciation, amortisation and impairment losses in non-financial assets	3.7	(35,566,206)	(31,453,578)
Operating pro fit/ (lo ss)		97,737,924	99,247,447
Financial income and gains	5.7	4,521,504	2,176,846
Financial expenses and losses	5.7	(13,333,461)	(4,853,519)
F inancial pro fit/ (lo ss)		(8,811,957)	(2,676,673)
Group share of (losses)/gains of associates and joint ventures		-	-
P ro fit befo re inco me tax		88,925,967	96,570,774
Income tax	6.1	(24,836,375)	(24,886,855)
N et pro fit fo r the perio d		64,089,592	71,683,919
Attributable to Navigator's equity holders		64,075,631	71,680,074
Attributable to non-controlling interests	5.3	13,961	3,845
Earnings per share
Basic earnings per share, Euro	5.2	0.090	0.101
Diluted earnings per share, Euro	5.2	0.090	0.101

Condensed consolidated statement of comprehensive income

Amounts in Euro		3 months	3 months
	Note	31-03-2024	31-03-2023
Net profit for the period
befo re no n-co ntro lling interests		64,089,592	71,683,919
Items that may be reclassified to the inco me statement
Derivative financial instruments – hedging
Changes in fair value	8.2	3,845,082	4,309,347
Tax on items above		(1,057,398)	(1,185,070)
Currency translation differences		3,121,499	(153,412)
Tax on conventional capital remuneration		-	-
Items that may no t be reclassified to the inco me statement
Remeasurements of post-employment benefits
Remeasurement	7.2.5	2,051,343	1,835,323
Tax effect	7.2.5	-	-
Comprehensive income of associates and joint ventures		1,808,680	(338,565)
T o tal o ther co mprehensive inco me net o f taxes		9,769,206	4,467,623
T o tal co mprehensive inco me		73,858,798	76,151,542
Attributable to:
Navigator's equity holders		73,844,837	76,147,697
Non-controlling interests		13,961	3,845
		73,858,798	76,151,542

Condensed consolidated statement of financial position

Amounts in Euro	Note	31-03-2024	31-12-2023
A SSET S
N o n-current assets
Goodwill	3.1	381,496,008	381,496,008
Intangible assets	3.2	80,788,093	46,198,240
Property, plant and equipment	3.3	1,240,535,013	1,233,223,791
Right-of-use assets	3.6	66,367,957	65,044,454
Biological assets	3.8	117,664,308	115,591,979
Investment properties	3.4	458,901	463,404
Non-current receivables	4.2	50,844,772	44,399,506
Deferred tax assets	6.2	23,635,529	23,653,501
		1,961,790,581	1,910,070,883
C urrent assets
Inventories	4.1	272,966,005	286,490,362
Current receivables	4.2	480,848,429	424,740,973
Income tax	6.1	20,593,177	18,385,534
Cash and cash equivalents	5.6	189,926,381	169,464,967
		964,333,992	899,081,836
T o tal assets		2,926,124,573	2,809,152,719
EQUIT Y A N D LIA B ILIT IES
C apital and R eserves
Share capital	5.1	500,000,000	500,000,000
Currency translation reserve		8,430,522	5,309,023
Fair value reserve		15,686,451	12,898,767
Legal reserve		100,000,000	100,000,000
Other reserves		3,481,014	3,481,014
Retained earnings		697,417,034	418,633,191
Net profit for the period		64,075,631	274,923,820
Equity attributable to N avigato r's equity ho lders		1,389,090,652	1,315,245,815
Non-controlling interests	5.3	340,978	327,018
T o tal Equity		1,389,431,630	1,315,572,833
N o n-current liabilities
	5.4
Interest-bearing liabilities Lease liabilities	5.5	529,328,748 63,942,155	560,085,341 62,848,761
Pensions and other post-employment benefits	7.2
Deferred tax liabilities	6.2	- 98,022,552	- 95,856,013
Provisions	9.1	27,849,574	27,837,286
Non-current payables	4.3	120,761,613	114,670,790
		839,904,642	861,298,191
C urrent liabilities
Interest-bearing liabilities	5.4	104,223,407	99,259,122
Lease liabilities	5.5	7,629,900	7,148,060
Current payables	4.3	536,103,344	503,046,782
Income tax	6.1	48,831,650	22,827,731
		696,788,301	632,281,695
T o tal liabilities		1,536,692,943	1,493,579,886
T o tal Equity and Liabilities		2,926,124,573	2,809,152,719

Condensed consolidated statement of changes in equity

Amounts in Euro	Note	Share capital	C urrency translatio n reserve	F air value reserves		Legal reserves Other reserves R etained	earnings	N et pro fit fo r the perio d	T o tal	N o n co ntro lling interests	T o tal
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		-	-	-	-	-	-	64,075,631	64,075,631	13,961	64,089,592
Other comprehensive income (net of taxes)		-	3,121,499	2,787,684	-	-	3,860,023	-	9,769,206		9,769,206
T o tal co mprehensive inco me fo r the perio d		-	3,121,499	2,787,684	-	-	3,860,023	64,075,631	73,844,837	13,961	73,858,798
Appropriation of 2023 net profit for the period:
- Dividends paid	5.4	-	-	-	-	-	-	-	-	-	-
- Appropriation of prior period's net profit		-	-	-	-	-	274,923,820	(274,923,820)	-	-	-
- Bonus to employees		-	-	-	-	-	-	-	-	-	-
T o tal transactio ns with shareho lders		-	-	-	-	-	274,923,820	(274,923,820)	-	-	-
Equity as at 31 M arch 2024		500,000,000	8,430,522	15,686,451	100,000,000	3,481,014	697,417,034	64,075,631	1,389,090,652	340,978	1,389,431,630

Amounts in Euro	Note	Share capital	C urrency translatio n reserve	F air value reserves		Legal reserves Other reserves R etained	earnings	N et pro fit fo r the perio d	T o tal	N o n co ntro lling interests	T o tal
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		-	-	-	-	-	-	71,680,074	71,680,074	3,845	71,683,919
Other comprehensive income (net of taxes)		-	(153,412)	3,124,277	-	-	1,496,758	-	4,467,623	-	4,467,623
T o tal co mprehensive inco me fo r the perio d		-	(153,412)	3,124,277	-	-	1,496,758	71,680,074	76,147,697	3,845	76,151,542
Appropriation of 2022 net profit for the period:
- Dividends paid	5.4	-	-	-	-	-	-	-	-	-	-
- Appropriation of prior period's net profit		-	-	-	-	-	392,537,070	(392,537,070)	-	-	-
- Bonus to employees		-	-	-	-	-	-	-	-	-	-
Distribution of reserves		-	-	-	-	-	-	-	-	-	-
T o tal transactio ns with shareho lders		-	-	-	-	-	392,537,070	(392,537,070)	-	-	-
Equity as at 31 M arch 2023		500,000,000	5,190,294	37,122,105	100,000,000	3,481,014	618,083,747	71,680,074	1,335,557,234	301,822	1,335,859,056

Condensed consolidated cash flow statement

		3 months	3 months
Amounts in Euro	Notes	31-03-2024	31-03-2023
OP ER A T IN G A C T IVIT IES
Receipts from customers		507,182,947	504,772,319
Payments to suppliers		(397,357,360)	(345,857,506)
Payments to employees		(29,044,328)	(29,283,004)
Cash flow from operations		80,781,259	129,631,809
Income tax received/ (paid)	6.1
		(735,527) 3,603,603	(326,985) 24,801,398
Other receipts / (payments) relating to operating activities C ash flo ws fro m o perating activities (1)		83,649,335	154,106,222
IN VEST IN G A C T IVIT IES
Inflo ws:
Property, plant and equipment		-	7,456
Outflo ws:		-	7,456
Property, plant and equipment		(35,079,928)	(27,154,850)
Intangible assets Investments in subsidiaries		-	(2,400,000)
		-	(85,135,621)
		(35,079,928)	(114,690,471)
C ash flo ws fro m investing activities (2)		(35,079,928)	(114,683,015)
F IN A N C IN G A C T IVIT IES
Inflo ws:
Interest-bearing liabilities	5.7	50,000,000
Government grants		5,174,886	-
		55,174,886	- -
Outflo ws:
Interest-bearing liabilities	5.7	(75,857,143)	(49,857,143)
Amortisation of lease agreements	3.6	(3,778,496)	(2,332,664)
Interest and similar expense		(2,623,216)	(5,235,288)
Other financing activities		(153,478)	(100,982)
		(82,412,333)	(57,526,077)
C ash flo ws fro m financing activities (3)		(27,237,447)	(57,526,077)
C H A N GE IN C A SH A N D C A SH EQUIVA LEN T S (1)+(2)+(3)		21,331,960	(18,102,870)
Effect of exchange rate differences		(870,545)	(677,898)
C A SH A N D C A SH EQUIVA LEN T S A T T H E B EGIN N IN G OF T H E P ER IOD	5.6	169,464,967	343,083,788
C A SH A N D C A SH EQUIVA LEN T S A T T H E EN D OF T H E P ER IOD	5.6	189,926,381	324,303,020

Interest and similar expense: essentially relates to interest payments on debt securities and financial debt (Note 5.7).

CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS

1. Introduction	23
1.1 THE GROUP	23
1.2 SUBSEQUENT EVENTS	24
1.3 BASIS FOR PREPARATION	25
1.4 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS	25
2. Operational performance	26
2.1 REVENUE AND SEGMENT REPORTING	26
2.2 OTHER OPERATING INCOME	30
2.3 OTHER OPERATING EXPENSES	31
3. Investments	32
3.1 GOODWILL	32
3.2 INTANGIBLE ASSETS	34
3.3 PROPERTY, PLANT AND EQUIPMENT	35
3.4 INVESTMENT PROPERTIES	36
3.5 RIGHT-OF-USE ASSETS	37
3.6 DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES	38
3.7 BIOLOGICAL ASSETS	38
4. Working capital	40
4.1 INVENTORIES	40
4.1.1. INVENTORIES - DETAIL BY NATURE	40
4.2 RECEIVABLES	40
4.3 PAYABLES	43
5. Capital structure	45
5.1 SHARE CAPITAL AND TREASURY SHARES	45
5.2 EARNINGS PER SHARE	45
5.3 NON-CONTROLLING INTERESTS	45
5.4 INTEREST-BEARING LIABILITIES	46
5.5 LEASE LIABILITIES	49
5.6 CASH AND CASH EQUIVALENTS	49
5.7 NET FINANCIAL RESULTS	50
6. Income tax	50
6.1 INCOME TAX FOR THE PERIOD	50
6.2 DEFERRED TAXES	53

7.	Payroll	54
	7.1 PAYROLL COSTS	54
	7.2 EMPLOYEE BENEFITS	55
	8. Financial instruments	57
	8.1 Derivative financial instruments	57
9.	Provisions, commitments and contingencies	58
9.1 Provisions		59
	9.2 Commitments	59
10.	Group structure	61
10.1	Companies included in the consolidation perimeter	61
10.2	Changes in the consolidation perimeter	62
10.3	Transactions with related parties	62
11.	Explanation added for translation	63

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 the cellulose industry which, through the merger of CPC – Companhia de Celulose, S.A.R.L. (Aveiro), Socel – Sociedade Industrial de Celulose, S.A.R.L. (Setúbal), Celtejo – Celulose do Tejo, S.A.R.L. (Vila Velha de Ródão), Celnorte – Celulose do Norte, S.A.R.L. (Viana do Castelo) and Celuloses do Guadiana, S.A.R.L. (Mourão), being converted into a Public Limited Company with a majority public shareholding by Decree-Law no. 405/90, of 21 December.

Years after, as a result of the restructuring of Portucel – Empresa de Celulose e Papel de Portugal, S.A., which was renamed Portucel, SGPS, S.A., towards to its privatisation, Portucel S.A. was created, on 31 May 1993, through Decree-law no. 39/93, of 13 February, with the former assets of the two main companies, based in Aveiro and Setúbal.

In 1995, the Company was privatised, and became a publicly traded company.

Aiming to restructure the paper industry in Portugal, Portucel acquired Papéis Inapa, S.A. (Setúbal), in 2000, and Soporcel – Sociedade Portuguesa de Papel, S.A. (Figueira da Foz), in 2001. Those key strategic decisions resulted in the Portucel Soporcel Group (currently Navigator Group), which is currently the largest European and one of the world's largest producers of bleached eucalyptus pulp and uncoated wood-free paper (UWF), with a capacity of 1.6 and 1.6 million tons and in 2023 it sold around 462,000 tons of pulp, 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 July 2015, more than 75% of the company's share capital was held directly and indirectly by Semapa – Sociedade de Investimento e Gestão SGPS, S.A.. (excluding treasury shares) having the percentage of voting rights been reduced to 70% following the conclusion of the offer for the acquisition, in the form of an exchange offer, of the ordinary shares of Semapa, SGPS, S.A., in July 2015. 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 plant has elevated Navigator to the position of second largest Iberian tissue producer, with a production and converting capacity of 180 thousand tonnes.

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: €500,000,000 No. of shares: 711,183,069 N.I.P.C.: 503 025 798

The Navigator Company, S.A. (Navigator is included in the consolidation perimeter of Semapa - Sociedade de Investimento e Gestão, SGPS, S.A. (Semapa), which is its parent company.

In turn, Filipa Mendes de Almeida de Queiroz Pereira, Mafalda Mendes de Almeida de Queiroz Pereira and Lua Mónica Mendes de Almeida de Queiroz Pereira hold joint control of Sodim - SGPS, S.A. (Sodim) through the combination of a shareholders' agreement. (Sodim) with their respective direct and indirect shareholdings in the share capital of this company, joint control of Sodim, Semapa and Navigator is attributable to each of them and to Sodim, under the terms of Article 20 of the Portuguese Securities Code, 83.221% of the non-suspended voting rights relating to shares representing the share capital of Semapa and also to each of them, Sodim and Semapa, 69.9704% of the non-suspended voting rights relating to shares representing the share capital of Navigator.

1.2 Subsequent events

On 22 March 2024, the Navigator Group, through its subsidiary Navigator Paper UK Limited, launched a takeover bid to acquire all the shares representing the share capital of Accrol, a UK company operating in the paper converting segment.

Accrol is a leading tissue paper converter in the UK, producing private label toilet rolls, kitchen rolls and facial tissues for most of the major retailers in the UK. In its last financial year ended 30 April 2023, turnover was GBP 242 million, EBITDA was GBP 15.6 million and net debt (pre-IFRS16) was GBP 26.8 million.

Navigator Group believes that this offer represents an attractive opportunity to enter the UK market through the acquisition of a leading tissue paper converting business with competitive advantages, complementary values and strong alignment with Navigator, as well as a strategic opportunity to sustainably grow its tissue business in the Western European market.

The Offer was 39 pence (GBX) per share, which is equivalent to a premium of 14.7% compared to the closing price of the British company on March 21, 2024, the last day of trading immediately prior to the announcement of the Offer and values Accrol's equity capital at around £130.8 million.

1.3 Basis for preparation

1.3.1 Authorisation to issue financial statements

These consolidated financial statements were approved by the Board of Directors and authorised for issue on 14 May 2024.

1.3.2 Basis for presentation

The condensed consolidated financial statements for the three-month period ended 31 March 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 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 period and the corresponding interim reporting period.

1.4 Significant accounting estimates and judgments

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
Recoverability of Goodwill	3.1 – Goodwill
Recoverability, useful life and depreciation of property, plant and equipment	3.3 – Property, plant and equipment
Fair value of biological assets	3.7 – Biological assets
	6.1 - Income tax for the period
Uncertainty over Income Tax Treatments	6.2 - Deferred taxes
Actuarial assumptions	7.2 – Employee benefits
Recognition of provisions	9.1 – Provisions

2. Operational performance

2.1 Revenue and segment reporting

Financial information by operating segment in 2024 and 2023

Amounts in Euro	MARKET PULP		UWF PAPER TISSUE PAPER	ENERGY	SUPPORT	* CANCELLATIONS	TOTAL
R EVEN UE
Sales and services – external	64,718,041	363,304,799	75,055,578	33,331,862	-	-	536,410,280
Sales and services – intersegment	692,033	-	-	11,214,984	-	(11,907,017)	-
T o tal revenue	65,410,074	363,304,799	75,055,578	44,546,846	-	(11,907,017)	536,410,280
P R OF IT / (LOSS)
Operating pro fit/ (lo ss) ( 1 )	3,450,034	73,028,049	21,376,262	6,702,960	(6,819,381)	-	97,737,924
Financial profit/(loss)	-	-	-	-	(8,811,957)	-	(8,811,957)
Income tax	-	-	-	-	(24,836,375)	-	(24,836,375)
N et pro fit fo r the perio d							64,089,592
Non-controlling interests	-	-	-	-	(13,961)	-	(13,961)
P ro fit/ (lo ss) attributable to equity ho lders	-	-	-	-	-	-	64,075,631
OT H ER IN F OR M A T ION
Capital acquisitions	8,438,122	27,974,408	2,869,012	551,432	843,406	-	40,676,380
Depreciation and impairment	(4,260,579)	(20,215,876)	(4,865,053)	(4,564,017)	(1,660,681)	-	(35,566,206)
Provisions ((increases) / reversal)	-	-	-	-	-	-	-
OT H ER IN F OR M A T ION
SEGM EN T A SSET S
Goodwill	-	376,756,383	4,739,625	-	-	-	381,496,008
Property, plant and equipment	148,492,088	728,959,876	220,975,152	137,037,594	5,070,303	-	1,240,535,013
Right-of-use assets	13,780,572	50,666,339	-	-	1,921,046	-	66,367,957
Biological assets	29,416,077	88,248,231	-	-	-	-	117,664,308
Non-current receivables	6,641,644	26,606,437	11,360,032	-	6,236,659	-	50,844,772
Inventories	31,860,180	207,097,300	32,198,779	821,121	988,625	-	272,966,005
Trade receivables	40,105,265	166,670,857	76,102,929	3,161,683	11,582,987	-	297,623,721
Other current receivables	27,279,337	65,400,993	12,011,986	1,475,916	77,056,476	-	183,224,708
Other assets	7,007,278	237,235,749	12,452,676	-	58,706,378	-	315,402,081
T o tal A ssets	304,582,441	1,947,642,165	369,841,179	142,496,314	161,562,474	-	2,926,124,573
SEGM EN T LIA B ILIT IES
Interest-bearing liabilities	-	415,573	30,140,645	-	602,995,937	-	633,552,155
Lease liabilities	14,980,792	54,551,577	-	-	2,039,686	-	71,572,055
Other payables	47,478,057	275,347,756	37,504,358	1,372,342	174,400,831	-	536,103,344
Other liabilities	26,612,412	131,830,911	48,107,039	7,585,580	81,329,447	-	295,465,389
T o tal Liabilities	89,071,261	462,145,817	115,752,042	8,957,922	860,765,901	-	1,536,692,943

* Cancellation of Intersegment Operations. Consolidation adjustments related to inter-segmental transactions are considered not significant. (1) Includes the effects of hedging derivatives of Euro 392,434 in the UWF Paper segment.

In the 3-month period ended 31 March 2024, The Navigator Company recorded turnover in the amount of Euro 536 million, with paper sales accounting for approximately 68% of turnover (vs. 67%), pulp sales 12% (vs. 13%), tissue sales 14% (vs. 10%) and energy sales 6% (vs. 10%).

The year 2024 started with pulp and paper demand continuing the favourable trend seen in the second half of 2023. In the fine paper market, with the end of the destocking process that characterised much of last year, apparent demand from producers more closely reflects final demand, especially in Europe, which boosted pulp demand in this region, in addition to robust demand from China as a result of the newly installed paper capacity that came on stream in the second half of 2023.

The first quarter was also characterised by the positive development of pulp and paper benchmark prices, supported by the above-mentioned demand dynamics, to which were added significant supply constraints, namely low stocks at the beginning of the year, strikes in Finland and restrictions in the Red Sea.

The first quarter of 2024 continued the positive trend of recovering the pace of order intake that closed 2023, with UWF Paper achieving an order/capacity ratio of 90%.

Navigator's paper and packaging sales increased by 10% compared to the previous quarter and by 29% compared to the same quarter last year. The value of paper and packaging sales increased by 12% compared to the last quarter and by 9% compared to the same period last year.

The packaging segment continues with the expansion of the product range and the development of new product lines that will allow the Group to enter new high value-added segments in the short term. This development is underpinned by market tests, which have already been carried out in more than 250 trials, in a commercial operation 100% based on its own brand - gKraft™.

The volume of pulp sales increased compared to the same period last year, due to a better-than-expected performance by end consumers of cellulose pulp, especially in the printing and writing paper industry.

The Tissue paper segment continues to perform well, with Navigator's Tissue sales volume (finished product and reels) growing compared to the same quarter last year and falling compared to the previous quarter, due to lower production availability, which affected reel sales. The value of sales was up 41% on the same period last year and down 4% on the previous quarter. Year-on-year growth benefited from the integration of the Navigator Tissue Ejea plant, effective at the beginning of the second quarter of 2023.

The amount corresponding to total energy sales was Euro 33,331,862 compared to Euro 49,104,062 in 2023, a decrease of approximately 32%. This decrease is essentially due to: (i) the reduction in the market price of electricity (OMIE), which in the first quarter of the year averaged 44.4 €/MWh, as opposed to 97.9 €/MWh a year earlier; (ii) the fact that the Setúbal Natural Gas Combined Cycle Power Plant is operating with just one group, whereas last year it was operating with 2 groups (since taking into account the evolution of the price differential (electricity and natural gas) the operation of the second group is currently not economically advantageous).

In the first quarter of 2024, investments in fixed assets amounted to Euro 40,676,380, compared with Euro 41,697,309 in the same period of the previous year. This amount includes mainly investments aimed at maintaining productive capacity, modernising equipment, and improving efficiency. Approximately 32% of the total investment is environmental or sustainable (ESG), including structural, environmental and decarbonisation projects such as the new recovery boiler in Setúbal, the new tower and washing presses 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 plant in Figueira da Foz.

31-03-2023

Amounts in Euro	MARKET					*
	PULP		UWF PAPER TISSUE PAPER	ENERGY	SUPPORT	CANCELLATIONS	TOTAL
R EVEN UE
Sales and services – external	66,028,888	332,933,985	53,092,550	49,104,062	-	-	501,159,485
Sales and services – intersegment	841,190			10,424,644	177,810,230	(189,076,064)	-
T o tal revenue	66,870,078	332,933,985	53,092,550	59,528,706	177,810,230	(189,076,064)	501,159,485
P R OF IT / (LOSS)
Operating pro fit/ (lo ss) ( 1 )	11,388,240	69,939,867	10,557,933	20,044,768	(12,683,361)	-	99,247,447
Financial profit/(loss)	-	-	-	-	(2,676,673)	-	(2,676,673)
Income tax	-	-	-	-	(24,886,855)	-	(24,886,855)
N et pro fit fo r the perio d	-	-	-	-			71,683,919
Non-controlling interests	-	-	-	-	(3,845)	-	(3,845)
P ro fit/ (lo ss) attributable to equity ho lders	-	-	-	-	-	-	71,680,074
OT H ER IN F OR M A T ION
Capital acquisitions	2,984,117	34,149,686	1,441,375	2,278,236	843,895	-	41,697,309
Depreciation and impairment	(3,874,419)	(19,227,702)	(2,559,403)	(4,195,267)	(1,596,787)	-	(31,453,578)
Provisions ((increases) / reversal)	-	-	-	-	-	-	-
OT H ER IN F OR M A T ION
SEGM EN T A SSET S
Goodwill	-	376,756,383	583,083	-	-	-	377,339,466
Property, plant and equipment	134,274,441	687,751,167	143,212,682	138,234,137	4,757,354	-	1,108,229,781
Right-of-use assets	12,235,774	45,378,722	-	-	2,280,881	-	59,895,377
Biological assets	30,474,262	91,422,787	-	-	-	-	121,897,049
Non-current receivables	-	-	85,135,620	-	-	-	85,135,620
Inventories	750,550	7,427,611	2,210,636	-	13,245,885	-	23,634,682
Trade receivables	42,794,109	251,404,447	27,264,942	923,533	2,377,435	-	324,764,466
Other current receivables	59,997,846	225,943,878	50,932,078	14,972,682	108,690,141	-	460,536,625
Other assets	6,385,421	101,836,031	6,070,002	-	341,538,695	-	455,830,149
T o tal A ssets	286,912,403	1,787,921,026	315,409,043	154,130,352	472,890,391	-	3,017,263,215
Interest-bearing liabilities	-	415,573	36,912,589	-	638,343,787	-	675,671,949
Lease liabilities	13,205,217	48,313,115	-	-	2,407,719	-	63,926,051
Other payables	65,680,413	384,497,489	22,873,533	73,423,355	84,243,200	-	630,717,990
Other liabilities	9,344,914	107,444,786	12,418,943	7,981,698	173,897,828	-	311,088,169
T o tal Liabilities	88,230,544	540,670,963	72,205,065	81,405,053	898,892,534	-	1,681,404,159

* Cancellation of Intersegment Operations. Consolidation adjustments related to inter-segmental transactions are considered not significant.

(1) Includes the effects of hedging derivatives of Euro 7,975,753 in the Energy segment. The Energy segment also includes revenues associated with guarantees of origin of Euro 1,392,534.

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

						31-03-2024
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Total Amount	Total %
Portugal	4,578,650	19,453,509	21,187,857	33,331,862	78,551,878	14.64%
Rest of Europe	46,275,566	223,768,733	53,207,897	-	323,252,196	60.26%
North America	-	21,726,034	389,591	-	22,115,625	4.12%
Latin America	532,283	14,891,882	21,265	-	15,445,430	2.88%
Africa	7,717,921	46,273,073	233,025	-	54,224,019	10.11%
Asia	5,613,621	37,140,223	15,943	-	42,769,787	7.97%
Oceania	-	51,345	-	-	51,345	0.01%
	64,718,041	363,304,799	75,055,578	33,331,862	536,410,280	100.00%
Recognition pattern
At a certain moment in time	64,718,041	363,304,799	75,055,578	33,331,862	536,410,280	100.00%
Over time	-	-	-	-	-	0.00%

						31-03-2023
Amounts in Euro					Total	Total
	Pulp	UWF Paper	Tissue Paper	Energy	Amount	%
Portugal	701,907	20,202,367	21,777,529	49,104,062	91,785,865	18.31%
Rest of Europe	33,899,622	213,091,399	30,796,047	-	277,787,068	55.43%
North America	-	14,904,049	-	-	14,904,049	2.97%
Latin America	327,606	10,556,965	104,794	-	10,989,365	2.19%
Africa	8,107,838	28,306,430	414,180	-	36,828,448	7.35%
Asia	22,991,915	45,872,775	-	-	68,864,690	13.74%
Oceania	-	-	-	-	-	0.00%
	66,028,888	332,933,985	53,092,550	49,104,062	501,159,485	100.00%
Recognition pattern
At a certain moment in time	66,028,888	332,933,985	53,092,550	49,104,062	501,159,485	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 three-month periods ended 31 March 2024 and 31 March 2023, Other operating income is detailed as follows:

Amounts in Euro	3 months 31-03-2024	3 months 31-03-2023
Gains on disposal of non-current assets	22,367	5,440
Grants – CO2 emission allowances (Note 3.2)	8,877,227	9,921,845
Supplementary gains	256,107	115,524
Operating grants	733,382	378,183
Reversal of impairment losses on receivables (Note 4.2)	1,228,954	2,053,479
Reversal of impairment losses on inventories (Note 4.1.2)	3,036,440	7,532
Gains on inventories	201,348	170,045
Own work capitalised	492,741	361,658
Compensations	21,680	50,560
Other operating income	3,290,272	1,303,844
	18,160,518	14,368,110

Gains on CO² allowances correspond to the recognition of free allocation of allowances for 120,239 tons of CO2, at the average price of Euro 73.83 (118,329 tons of CO2, at the average price of Euro 83.85 as at 31 March 2023).

Operating grants include Euro 700,113 related to the Recovery and Resilience Programme. This caption also includes grants awarded for research and development projects carried out by the RAIZ institute.

The caption Impairment reversal on receivables is essentially related to the impairment reversal on Trade receivables from Egypt.

The amount of impairment reversals on inventories relates to the reversal of impairments on UWF wastepaper, damaged stock and wet reels of UWF paper.

2.3 Other operating expenses

	3 months	3 months
Amounts in Euro	31-03-2024	31-03-2023
C o st o f go o ds so ld and materials co nsumed (N o te 4.1.2)	224,886,646	254,355,100
External services and supplies
Energy and fluids	34,112,153	17,269,937
Transportation of goods	34,811,767	32,837,237
Specialised work	21,729,114	23,961,525
M aintenance and repair	8,969,085	7,881,674
Rentals	2,027,713	1,788,265
Advertising and marketing	3,295,215	2,653,708
Insurance	2,744,680	2,393,323
Travel and accommodation	1,188,907	1,052,487
Fees	425,590	1,447,798
Subcontracts	100,164	207,476
M aterials	637,794	433,784
Communications	221,209	310,921
Other	4,751,806	3,321,041
	115,015,197	95,559,176
Variatio n in pro ductio n (N o te 4.1.3)	15,518,788	(27,368,170)
P ayro ll co sts (N o te 7.1)	49,842,587	44,549,310
Other o perating expenses
Costs with CO2 emission allowances	9,625,493	12,289,955
Impairment losses on receivables (Note 4.2)	965,765	41,853
Impairment losses on inventories (Note 4.1.4)	2,962,009	728,407
Other inventory losses	2,639,809	1,580,558
Indirect taxes	635,926	668,345
Losses on disposal of non-current assets	3,671	-
Water resource fee	461,714	442,140
Other operating expenses	781,392	1,377,705
	18,075,779	17,128,963
N et pro visio ns (N o te 9.1)	-	-
T o tal o perating expenses	423,338,997	384,224,379

During the three-month period ended 31 March 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 132,407 tons of CO² 1 (31 March 2023: 127,252 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 1,900,000.

In the 3-month period ended 31 March 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	31-03-2024	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 for the production and commercialisation 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
	381,496,008	381,496,008

Navigator Brands / Navigator Paper Figueira, S.A.

Following the acquisition of 100% of the former Soporcel - Sociedade Portuguesa de Papel, S.A. (now Navigator Brands, S.A.), for Euro 1,154,842,000, Goodwill amounting to Euro 428,132,254 was determined.

The Goodwill generated on the acquisition of Navigator Paper Figueira was deemed to be allocable to the integrated paper production in Figueira da Foz Industrial Complex cash generating unit.

This goodwill has a book value of Euro 376,756,383 as it was subject to annual amortisation until 31 December 2003 (date of transition to IFRS: 1 January 2004), with amortisation having ceased as from that date, the accumulated amount of which amounted to Euro 51,375,871. Since that date, annual tests have been carried out to determine any impairment losses.

Navigator Tissue Ródão, S.A.

On 6 February 2015 the procedures and agreements for the acquisition of AMS-BR Star Paper, S.A. (later merged into Navigator Tissue Ródão, S.A.) were concluded, with the 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. e Navigator Tisse France S.A.S.

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 2,400,000, 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:

C usto mer po rtfo lio

In determining the fair value of the customer portfolio, the multi-period excess earnings method (M PEEM ) was used, which considered the present value of the expected net cash flows of the portfolio.

P ro perty, 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 consisted of identifying the replacement value of the assets acquired adjusted for depreciation, in accordance with the useful life of the assets on the date of purchase. According to the study, the following useful lives were considered: - Buildings and other constructions - 40 years; - Factory equipment - between 25 and 30 years

3.2 Intangible assets

Movements in intangible assets

Amounts in Euro	Industrial property and other	CO2 emission allowances	Other intangible assets	Intangible assets	Total
Gro ss amo unt	rights			in progress
B alance as at 1 January 2023	70,983	44,781,151	-	-	44,852,134
Allocations	-	39,687,379	-	-	39,687,379
Acquisitions	2,400,000	-	-	-	2,400,000
Adjustments, transfers and write-offs	522,194	-	-	-	522,194
B alance as at 31 M arch 2023	2,993,177	84,468,530	-	-	87,461,707
Change in the perimeter (Note 1.2)	-	-	3,346,282	-	3,346,282
Acquisitions	-	-	-	522,645	522,645
Adjustments, transfers and write-offs	(273,958)	(42,966,321)	-	(522,645)	(43,762,924)
B alance as at 31 D ecember 2023	2,719,219	41,502,209	3,346,282	-	47,567,710
Allocations	-	35,508,908	-	-	35,508,908
B alance as at 31 M arch 2024	2,719,219	77,011,117	3,346,282	-	83,076,618
A ccumulated amo rtisatio n and impairment lo sses
B alance as at 1 January 2023	(39,043)	-	-	-	(39,043)
Depreciation and amortisation for the period (Note 3.6)	(38,813)	-	-	-	(38,813)
B alance as at 31 M arch 2023	(77,856)	-	-	-	(77,856)
Change in the perimeter (Note 1.2)	-	-	(1,341,517)	-	(1,341,517)
Depreciation and amortisation for the period (Note 3.6)	(224,506)	-	-	-	(224,506)
Adjustments, transfers and write-offs	274,409	-	-	-	274,409
B alance as at 31 D ecember 2023	(27,953)	-	(1,341,517)	-	(1,369,470)
Depreciation and amortisation for the period (Note 3.6)	(381,676)	-	-	-	(381,676)
Impairment losses for the period (Note 3.6)	-	(537,379)	-	-	(537,379)
B alance as at 31 M arch 2024	(409,629)	(537,379)	(1,341,517)	-	(2,288,525)
N et bo o k value as at 1 January 2023	31,940	44,781,151	-	-	44,813,091
N et bo o k value as at 31 M arch 2023	2,915,321	84,468,530	-	-	87,383,851
N et bo o k value as at 31 D ecember 2023	2,691,266	41,502,209	2,004,765	-	46,198,240
N et bo o k value as at 31 M arch 2024	2,309,590	76,473,738	2,004,765	-	80,788,093

CO² allowances

	31-03-2024	31-12-2023
C O2 emission allowances (units)	975,805	494,850
Average unit value (Euro)	78.92	83.87
M arket quotation (Euro)	60.58	78.06

The increase in the number of allowances compared to the previous year is due to the allocation of new CO² accesses and the fact that the previous year's allowances were not delivered.

CO² allowances – movements of the period

		31-03-2024	31-12-2023
Amounts in Euro	Tons	Amount	Tons	Amount
Opening balance	494,850	41,502,209	574,122	44,781,151
C O2 allowances awarded free of charge (Note 2.2)	480,955	35,508,908	473,314	39,687,379
C O2 allowances returned to the Licensing Coordinating Entity	-	-	(552,586)	(42,966,321)
C lo sing balance	975,805	77,011,117	494,850	41,502,209
Additional CO2 emissions in the period (Note 2.3)

3.3 Property, plant and equipment

Movements in property, plant and equipment

Amounts in Euro		Buildings and other	Equipment and other tangible	Assets under
	Land	constructions	assets	construction	Total
Gro ss amo unt
B alance as at 1 January 2023	115,774,318	544,499,868	3,727,191,728	92,156,485	4,479,622,399
Acquisitions	-	-	8,476,298	30,821,011	39,297,309
Disposals	(2,280)	-	(28,685)	-	(30,965)
Adjustments, transfers and write-offs	219,187	449,990	11,657,225	(12,894,665)	(568,263)
B alance as at 31 M arch 2023	115,991,225	544,949,858	3,747,296,566	110,082,831	4,518,320,480
Change in the perimeter (Note 1.2)	3,894,076	31,344,927	86,159,207	74,053	121,472,263
Acquisitions	-	377,216	1,511,785	141,795,143	143,684,144
Disposals	(39,563)	(136,266)	(328,943)	-	(504,772)
Adjustments, transfers and write-offs	1,747,966	692,858	88,036,272	(91,197,633)	(720,537)
B alance as at 31 D ecember 2023	121,593,704	577,228,593	3,922,674,887	160,754,394	4,782,251,578
Change in the perimeter (Note 1.2)					-
Acquisitions	-	-	1,237,554	39,438,826	40,676,380
Disposals	-	-	-	-	-
Adjustments, transfers and write-offs	135,602	1,644,485	10,993,886	(12,777,628)	(3,655)
B alance as at 31 M arch 2024	121,729,306	578,873,078	3,934,906,327	187,415,592	4,822,924,303
A ccumulated depreciatio n and impairment lo sses
B alance as at 1 January 2023	-	(381,686,338)	(2,998,246,653)	-	(3,379,932,992)
Depreciation for the period (Note 3.6)	-	(3,373,835)	(26,830,285)	-	(30,204,120)
Disposals	-	-	(775)	-	(775)
Adjustments, transfers and write-offs	-	5,042,446	(4,995,258)	-	47,188
B alance as at 31 M arch 2023	-	(380,017,727)	(3,030,072,971)	-	(3,410,090,699)
Change in the perimeter (Note 1.2)	-	(8,940,894)	(31,324,474)	-	(40,265,368)
Depreciation for the period (Note 3.6)	-	(10,425,978)	(89,551,943)	-	(99,977,921)
Disposals	-	120,107	317,198	-	437,305
Adjustments, transfers and write-offs	-	186,414	682,482	-	868,896
B alance as at 31 D ecember 2023	-	(399,078,078)	(3,149,949,708)	-	(3,549,027,787)
Change in the perimeter (Note 1.2)	-			-	-
Depreciation for the period (Note 3.6)	-	(3,708,065)	(29,653,438)		(33,361,503)
Disposals	-	-	-	-	-
Adjustments, transfers and write-offs	-	(114,788)	114,788	-	-
B alance as at 31 M arch 2024	-	(801,979,010)	(6,329,438,067)	-	(3,582,389,290)
N et bo o k value as at 1 January 2023	115,774,318	162,813,530	728,945,075	92,156,485	1,099,689,407
N et bo o k value as at 31 M arch 2023	115,991,225	164,932,131	717,223,595	110,082,831	1,108,229,781
N et bo o k value as at 31 D ecember 2023	121,593,704	178,150,515	772,725,179	160,754,394	1,233,223,791
N et bo o k value as at 31 M arch 2024	121,729,306	(223,105,932)	(2,394,531,740)	187,415,592	1,240,535,013

As at 31 March 2024, Assets under construction include investments related to ongoing development projects, in particular the new recovery boiler in Setúbal (Euro 52,250,000), the new natural gas boiler in Setúbal (Euro 5,025,658), investments in wastewater treatment (Setúbal wastewater treatment plant) (Euro 4,273,917), investments in the removal of chloride and potassium ash in Aveiro (Euro 3,805,230), the conversion of the lime kilns in Setúbal (Euro 3,645,614), the new bleaching tower in Aveiro (Euro 2,500,000), investments in the natural gas network in Setúbal (Euro 2,123,598) and the upgrade of the evaporation plant in Figueira da Foz (Euro 1,519,260, investments in the new cogeneration plants in Aveiro and Figueira da Foz (Euro 1,932,428) and (Euro 1,176,000) 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.

Land includes Euro 115,941,738 (31 December 2023: Euro 115.903.357) classified in the individual financial statements as investment properties, from which Euro 76,803,623 (31 December 2023: Euro 76,765,242) relate to forestry land and Euro 39,138,115 (31 December 2023: Euro 39,138,115) to land allocated to industrial sites.

3.4 Investment properties

Movement in investment properties

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

		Buildings
Amounts in Euro		and other
	Land	construction	Total
Gro ss amo unt
B alance as at 1 January 2023	424,744	82,307	507,051
Acquisitions	-	-	-
Disposals	-	-	-
B alance as at 31 M arch 2023	424,744	82,307	507,051
Acquisitions	-	-	-
Disposals	-	-	-
Adjustments, transfers and write-offs	142,288	530,684	672,972
B alance as at 31 D ecember 2023	567,032	612,991	1,180,023
Acquisitions	-	-	-
Disposals	-	-	-
Adjustments, transfers and write-offs	-	-	-
B alance as at 31 M arch 2024	567,032	612,991	1,180,023
A ccumulated depreciatio n and impairment lo sses
B alance as at 1 January 2023	(399,372)	(16,735)	(416,107)
Depreciation for the period (Note 3.6)	-	(412)	(412)
Disposals	-	-	-
B alance as at 31 M arch 2023	(399,372)	(17,147)	(416,519)
Depreciation for the period (Note 3.6)	-	(1,234)	(1,234)
Disposals	-	-	-
Adjustments, transfers and write-offs	-	(298,866)	(298,866)
B alance as at 31 D ecember 2023	(399,372)	(317,247)	(716,619)
Depreciation for the period (Note 3.6)	-	(4,504)	(4,504)
Disposals	-	-	-
B alance as at 31 M arch 2024	(399,372)	(321,751)	(721,123)
N et bo o k value as at 1 January 2023	25,372	65,572	90,943
N et bo o k value as at 31 M arch 2023	25,372	65,160	90,532
N et bo o k value as at 31 D ecember 2023	167,660	295,744	463,404
N et bo o k value as at 31 M arch 2024	167,660	291,240	458,901

3.5 Right-of-use assets

Movements in right-of-use assets

Amounts in Euro	Forestry lands	Buildings	Vehicles	Software licenses	Other lease assets	Total
Gro ss amo unt
B alance as at 1 January 2023	58,830,098	4,655,055	11,577,961	1,556,613	9,420,387	86,040,114
Acquisitions	3,141,380	10,062	882,473	-	-	4,033,915
Adjustments, transfers and write-offs	-	-	-	-	-	-
B alance as at 31 M arch 2023	61,971,478	4,665,117	12,460,434	1,556,613	9,420,387	90,074,029
Acquisitions	7,974,697	43,682	2,187,310	-	1,764,073	11,969,762
Adjustments, transfers and write-offs	-	(356,397)	(2,711,330)	(342,519)	-	(3,410,246)
B alance as at 31 D ecember 2023	69,946,175	4,352,402	11,936,414	1,214,094	11,184,460	98,633,545
Acquisitions	1,891,308	-	1,642,829	-	-	3,534,137
Adjustments, transfers and write-offs	-	-	-	-	-	-
B alance as at 31 M arch 2024	71,837,483	4,352,402	13,579,243	1,214,094	11,184,460	102,167,682
A ccumulated depreciatio n and impairment lo sses						-
B alance as at 1 January 2023	(12,821,763)	(2,400,948)	(7,281,667)	(1,113,577)	(4,487,317)	(28,105,272)
Depreciation	(988,620)	(129,551)	(484,259)	(50,844)	(420,104)	(2,073,378)
Adjustments, transfers and write-offs	-	-	-	-	-	-
B alance as at 31 M arch 2023	(13,810,383)	(2,530,499)	(7,765,926)	(1,164,421)	(4,907,421)	(30,178,650)
Depreciation	(2,972,810)	(390,614)	(2,048,027)	(299,591)	(1,682,737)	(7,393,779)
Adjustments, transfers and write-offs						-
B alance as at 31 D ecember 2023	(16,783,193)	(2,564,716)	(6,573,251)	(1,121,493)	(6,546,437)	(33,589,090)
Depreciation	(1,039,655)	(130,806)	(569,616)	(34,438)	(436,119)	(2,210,634)
Adjustments, transfers and write-offs		-	-	-	-	-
B alance as at 31 M arch 2024	(17,822,848)	(2,695,522)	(7,142,867)	(1,155,931)	(6,982,556)	(35,799,724)
N et bo o k value as at 1 January 2023	46,008,335	2,254,107	4,296,294	443,036	4,933,070	57,934,841
N et bo o k value as at 31 M arch 2023	48,161,095	2,134,618	4,694,508	392,192	4,512,966	59,895,379
N et bo o k value as at 31 D ecember 2023	53,162,982	1,787,686	5,363,163	92,601	4,638,023	65,044,454
N et bo o k value as at 31 M arch 2024	54,014,635	1,656,880	6,436,376	58,163	4,201,904	66,367,957

The item 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 31 May 2027.

The caption Other lease assets includes the forklift truck rental contracts signed since 2020 and valid until January 2029.

The cash flows associated with the amortisation of lease agreements correspond to financial amortisation of Euro 3,114,089 and interest of Euro 664,407 (Note 5.5), amounting to a total of Euro 3,778,496, as shown in the Cash Flow Statement.

3.6 Depreciation, amortisation and impairment losses

Amounts in Euro	31-03-2024	31-03-2023
Depreciation of property, plant and equipment for the period (Note 3.3)	33,361,503	30,204,120
Government grants charge-off	(929,490)	(863,145)
D epreciatio n o f pro perty, plant and equipment, net o f grants used	32,432,013	29,340,975
A mo rtisatio n o f intangible assets fo r the perio d (N o te 3.2)	381,676	38,813
Impairment on intangible assets – losses	537,379	-
Impairment o f intangible assets fo r the perio d (N o te 3.2)	537,379	-
D epreciatio n o f right-o f-use assets fo r the perio d (N o te 3.5)	2,210,634	2,073,378
Depreciation of investment properties (Note 3.4)	4,504	412
	35,566,206	31,453,578

The Group regularly uses external and independent experts to assess its industrial assets and to check the appropriateness of the estimates used for the useful lives of these assets.

3.7 Biological assets

Movements in biological assets

Amounts in Euro	31-03-2024	31-12-2023
Opening balance	115,591,979	122,499,875
Logging	(4,116,177)	(6,638,503)
Growth	6,104,338	6,430,848
New planted areas and replanting	861,365	1,307,213
Other changes in fair value
- changes in other species	(36,402)	(389,526)
- other changes in expectations	(740,795)	(1,312,858)
T o tal changes	2,072,329	(602,826)
A mo unt as at 31 M arch	117,664,308	121,897,049
Remaining quarters		(6,305,070)
A mo unt as at 31 D ecember		115,591,979

The discount rate used in the 3-month period ended 31 March 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 31 March 2024 and 31 December 2023, biological assets, by species, is detailed as follows:

Amounts in Euro	31-03-2024	31-12-2023
Eucalyptus (Portugal)	89,043,136	88,244,919
Eucalyptus (Spain)	1,693,241	1,628,022
Pine (Portugal)	5,862,043	5,898,445
Cork oak (Portugal)	835,149	835,149
Other species (Portugal)	73,107	73,107
Eucalyptus (M ozambique)	20,157,632	18,912,337
	117,664,308	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:

	31-03-2024	31-12-2023
Eucalyptus (Portugal) – Potential future of wood extractions k m3ssc	10,447	10,447
Eucalyptus (Spain) – Potential future of wood extractions k m3ssc	252	252
Pine (Portugal) – Potential future of wood extractions k ton	290	290
Cork oak (Portugal) – Potential future of cork extractions k @	488	488
Eucalyptus (M ozambique) – Potential future of wood extractions k m3ssc	3,570	3,570

Concerning Eucalyptus, the most relevant biological asset in the financial statements, the Group extracted, in the three-month periods ended 31 March 2024 and 31 December 2023, 107,141 m3ssc and 594,709 m3ssc of wood from its owned and explored forests, respectively.

As at 31 March 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	31-03-2023	31-12-2023
Raw materials	150,535,344	148,367,213
Goods	91,762	843,675
Subto tal (N o te 4.1.2)	150,627,106	149,210,888
Finished and intermediate products	120,188,214	134,975,607
Goods and work in progress	1,890,753	2,002,384
By-products and waste	259,932	301,483
Subto tal (N o te 4.1.3)	122,338,899	137,279,474
T o tal	272,966,005	286,490,362

4.1.2. Movements in impairment losses in inventories Invento ries measured at net realisable value

Amounts in Euro	31-03-2023	31-12-2023
Opening balance	(20,581,954)	(16,374,423)
Increases (Note 2.3)	(2,962,009)	(4,152,419)
Reversals (Note 2.2)	3,036,440	317,928
Impact o n pro fit/ (lo ss) fo r the perio d	74,431	(3,834,491)
Charge-off	(17,571)	(373,040)
C lo sing balance	(20,525,094)	(20,581,954)

4.2 Receivables

	31-03-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Trade receivables	-	297,623,619	297,623,619	-	259,060,739	259,060,739
Other receivables – related companies (Note 10.3)	-	102	102	-	102	102
State	-	45,435,842	45,435,842	-	57,026,840	57,026,840
Grants receivable	44,195,268	52,821,895	97,017,163	39,821,344	52,821,895	92,643,239
Department of Commerce (USA)	2,534,745	-	2,534,745	2,872,289	-	2,872,289
Accrued income	-	10,311,961	10,311,961	-	12,304,428	12,304,428
Deferred expenses	-	19,059,673	19,059,673	-	14,955,574	14,955,574
Derivative financial instruments (Note 8.1.1)	-	26,008,389	26,008,389	-	19,458,938	19,458,938
Other	4,114,759	29,586,948	33,701,708	1,705,873	9,112,457	10,818,330
	50,844,772	480,848,429	531,693,202	44,399,506	424,740,973	469,140,480

State

State is detailed as follows:

Amounts in Euro	31-03-2024	31-12-2023
Value Added Tax – recoverable	1,500,198	4,299,693
Value Added Tax – repayment requests	43,935,644	52,727,147
	45,435,842	57,026,840

As at 31 March 2024, the amount of repayment requests comprised the following, by month and by company:

Amounts in Euro	Jan/2024	Feb/2024	Mar/2024	Total
The Navigator Company, S.A.	7,367,408	-	27,518,126	34,885,534
Navigator Abastecimento de M adeira, ACE	1,490,000	890,000	2,470,000	4,850,000
Bosques do Atlântico, S.L.	-	-	3,460,110	3,460,110
Navigator Forest Portugal, S.A.	-	410,000	330,000	740,000
	8,857,408	1,300,000	33,778,236	43,935,644

Up to the date of issuing this report, Euro 39.677.014 of the outstanding amounts as at 31 March 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 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 quarter of 2024.

Grants receivable

Grants receivable are detailed as follows:

			31-03-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
			-			-
AICEP Contracts	-	9,721,792	9,721,792	-	9,721,792	9,721,792
Recovery and Resilience Plan	43,070,960	37,890,496	80,961,456	37,890,496	37,890,496	75,780,992
Other	1,124,308	5,209,607	6,333,915	1,930,848	5,209,607	7,140,455
	44,195,268	52,821,895	97,017,163	39,821,344	52,821,895	92,643,239

Department of Commerce (USA)

As at 31 March 2024, the balance corresponds to the amount receivable from the Department of Commerce (DoC) following the investigation initiated in 2015 of alleged dumping practices in exports of UWF paper to the United States by the subsidiary Navigator.

During 2022, the Department of Commerce confirmed the final rate to be applied for the 5th review period from March 2020 to February 2021 at 5.81%, therefore the Group received in 2023 the amount of Euro 639,517 for the difference between the deposits made and the final rate payable.

In 2023, the rate for the 6th review period, from March 2021 to February 2022, was also confirmed at 7.11%, with the subsequent review periods (7 and 8) remaining unconfirmed. Regarding these three periods, Navigator is estimated to pay to the DoC approximately Euro 449,777 (Note 4.3).

Accrued Income and Deferred Expenses

Accrued income and deferred expenses are detailed as follows:

Amounts in Euro	31-03-2024	31-12-2023
A ccrued inco me
Interest receivable	-	570,646
Energy sales	9,979,013	10,280,593
Other	332,948	1,453,189
	10,311,961	12,304,428
D eferred expenses
Insurance	3,720,422	91,023
Rentals	12,880,128	12,587,120
Other	2,459,123	2,277,431
	19,059,673	14,955,574
	29,371,633	27,260,002

Other receivables

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

Other non-current receivables

Amounts in Euro	31-03-2024	31-12-2023
Labour Compensation Fund	789,980	769,982
Collateral	45,707	45,707
Pensions and other post-employment benefits	2,828,500	777,147
Other shareholdings (Almascience, Forestwise, Cecolab, Colab BIOREF)	69,800	69,800
Other debtors	380,772	43,237
	4,114,759	1,705,873

Other current receivables

31-03-2024	31-12-2023
172,019	114,765
22,761,793	7,432,928
6,653,136	1,564,764
29,586,948	9,112,457

Impairment from trade and other receivables

Impairment
Amounts in Euro	Trade receivables	Other devedores	Total
B alance as at 1 January 2024	(3,293,670)	(345,488)	(3,639,158)
Increase (Note 2.3)	(965,765)		(965,765)
Reversals (Note 2.2)	1,201,552	27,402	1,228,954
Charge-off	77,311		77,311
B alance as at 31 M arch 2024	(2,980,572)	(318,086)	(3,298,658)

4.3 Payables

Amounts in Euro	31-03-2024	31-12-2023
Trade payables – current account	155,645,154	209,023,299
Trade payables – Property, plant and equipment – current account	21,341,373	14,588,147
State	35,249,680	47,238,622
Related parties (Note 10.3)	3,958,794	1,542,197
Other creditors – CO2 emission allowances	49,322,564	39,325,970
Other payables	26,002,124	21,675,082
Derivative financial instruments (Note 8.2)	13,773,277	5,691,818
Accrued expenses – payroll costs	50,473,268	39,402,872
Accrued expenses – interest payable	3,607,843	4,192,903
Wood suppliers bonus	3,028,490	3,266,604
Water resource fee	2,027,868	1,570,025
Rent liabilities	19,153,110	18,723,772
Other accrued expenses	9,710,248	9,874,933
Non-repayable grants	39,223,036	13,059,496
P ayables – current	536,103,344	503,046,782
Non-repayable grants	120,311,836	112,549,349
Department of Commerce (USA) (Note 4.2)	449,777	2,121,441
P ayables – no n-current	120,761,613	114,670,790
	656,864,957	617,717,572

The increase in the balance of Trade payables is due to the greater volume of investments made in 2024, as mentioned in Note 2.1.

State - Details

Amounts in Euro	31-03-2024	31-12-2023
Personal income tax withhold (IRS)	1,945,857	2,388,230
Value added tax	29,370,948	41,208,469
Social Security contributions	3,010,400	2,721,253
Other	922,475	920,670
	35,249,680	47,238,622

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

Non-repayable grants – Details

Amounts in Euro	31-03-2024	31-12-2023
Government grants	3,359,539	3,352,238
Grants – CO2 emission allowances (Note 3.2)	26,631,681	-
Other grants	9,231,816	9,707,258
N o n-repayable grants – current	39,223,036	13,059,496
Government grants	120,311,836	112,549,349
N o n-repayable grants – no n-current	120,311,836	112,549,349
	159,534,872	125,608,845

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

		31-03-2024	31-12-2023
Entity	No. of shares	%	No. of shares	%
Semapa, SGPS, S.A.	497,617,299	69.97%	497,617,299	69.97%
Floating shares	213,565,770	30.03%	213,565,770	30.03%
	711,183,069	100.0%	711,183,069	100.0%

5.2 Earnings per share

	31-03-2024	31-03-2023
P ro fit attributable to N avigato r's equity ho lders (Euro )	64,075,631	71,680,074
Total number of shares issued	711,183,069	711,183,069
Weighted average number o f shares	711,183,069	711,183,069
B asic earnings per share (Euro )	0.090	0.101
D iluted earnings per share (Euro )	0.090	0.101

5.3 Non-controlling interests

Detail of non-controlling interests, by subsidiary

	%		Equity		Net profit
Amounts in Euro	held	31-03-2024	31-12-2023	31-03-2024	31-03-2023
Raiz – Instituto de Investigação da Floresta e Papel	3.0%	340,978	327,018	13,961	3,845
Portucel M oçambique	i) 9.98%	-	-	-	-
		340,978	327,018	13,961	3,845

Non-controlling interests are related to RAIZ – Instituto de Investigação da Florestal e Papel, in which the Group holds 97% of the share capital and voting rights. The remaining 3% are held by external associates.

In 2014, the Group signed agreements with IFC – Internacional Finance Corporation for the entry of this institution into the share capital of the subsidiary Portucel Moçambique, S.A., thus ensuring the construction phase of the Group's forestry project in Mozambique. In 2015, this Company performed a capital increase from MZM 1,000

million to MZM 1,680.798 million subscribing MZM 332,798 million corresponding to 19.98% of the capital at that date.

In February 2019, there was a 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.

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.

5.4 Interest-bearing liabilities

			31-03-2024	31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current Current Total
Bond loans	387,500,000	22,500,000	410,000,000	397,500,000 22,500,000 420,000,000
Commercial paper	35,000,000	55,000,000	90,000,000	70,000,000 35,000,000 105,000,000
Bank loans	86,150,794	19,503,968	105,654,762	71,972,222 34,539,683 106,511,905
Charges with bond issuances	(2,658,825)	-	(2,658,825)	(2,614,750) (2,614,750) -
Refundable grants	23,336,779	7,219,439	30,556,218	23,227,869 7,219,439 30,447,308
D ebt securities and bank debt	529,328,748	104,223,407	633,552,155	560,085,341 99,259,122 659,344,463
A verage interest rate, co nsidering charges fo r annual fees and hedging o peratio ns			2.0%	2.0%

During the three-month period ended 31 March 2024, the evolution of financing was determined by:

-The repayments inherent in the contracted debt, resulting from the amortisation of bonds and Commercial paper;

• The contracting and utilisation of a new long-term bank loan maturing in 2031.

Interest-bearing liabilities – Details

31-03-2024

	Outstanding
Amounts in Euro	Amount	amount	Maturity	Interest rate	Current	Non-current
B o nd lo ans
Navigator 2022-2028 ESG	150,000,000	150,000,000	June 2028	Variable rate indexed to Euribor, with swap to fixed rate	-	150,000,000
Navigator 2019-2026	50,000,000	50,000,000	January 2026	Fixed rate	-	50,000,000
Navigator 2019-2025	20,000,000	20,000,000	M arch 2025	Variable rate indexed to Euribor, with swap to fixed rate	20,000,000
Navigator 2021-2026	15,000,000	15,000,000	April 2026	Variable rate indexed to Euribor	2,500,000	12,500,000
Navigator 2020-2026	75,000,000	75,000,000	December 2026	Variable rate indexed to Euribor, with swap to fixed rate	-	75,000,000
Navigator 2021-2026 ESG	100,000,000	100,000,000	August 2026	Variable rate indexed to Euribor, with swap to fixed rate	-	100,000,000
Comissions	-	(2,658,825)			-	(2,658,825)
Euro pean Investment B ank (EIB )
EIB Loan – Energy	7,083,333	7,083,333	December 2024	Variable rate indexed to Euribor	7,083,333	-
EIB Loan – Cacia	12,500,000	12,500,000	M ay 2028	Fixed rate	2,777,778	9,722,222
EIB Loan – Figueira	28,571,429	28,571,429	February 2029	Fixed rate	5,714,286	22,857,143
EIB Loan – Biomass Boiler	27,500,000	27,500,000	M arch 2031	Fixed rate	3,928,571	23,571,429
EIB Loan	115,000,000	-	up to 12 years after disbursement	Rate indexed to the EIB's cost of funds on disbursement	-	-
C o mmercial P aper P ro gramme
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	-	-
Papel Comercial Uncommited	20,000,000	20,000,000	April 2024	Variable rate indexed to Euribor	20,000,000	-
Lo ans
Long-term investment
Other	55,000,000	30,000,000	M arch 2031	Variable rate indexed to Euribor	-	30,000,000
R efundable grants
AICEP	30,556,218	30,556,218	November 2027	Fixed rate	7,219,439	23,336,779
B ank credit facilities
Short-term facility 20M	20,450,714	-			-	-
	941,161,694	633,552,155			104,223,407	529,328,748

31-12-2023

	Outstanding
Amounts in Euro	Amount	amount	Maturity	Interest rate	Current	Non-current
B o nd lo ans
Navigator 2022-2028 ESG	150,000,000	150,000,000	June 2028	Variable rate indexed to Euribor, with swap to fixed rate	-	150,000,000
Navigator 2019-2026	50,000,000	50,000,000	January 2026	Fixed rate	-	50,000,000
Navigator 2019-2025	30,000,000	30,000,000	M arch 2025	Variable rate indexed to Euribor, with swap to fixed rate	20,000,000	10,000,000
Navigator 2021-2026	15,000,000	15,000,000	April 2026	Variable rate indexed to Euribor	2,500,000	12,500,000
Navigator 2020-2026	75,000,000	75,000,000	December 2026	Variable rate indexed to Euribor, with swap to fixed rate	-	75,000,000
Navigator 2021-2026 ESG	100,000,000	100,000,000	August 2026	Variable rate indexed to Euribor, with swap to fixed rate	-	100,000,000
Comissions	-	(2,614,750)			-	(2,614,750)
Euro pean Investment B ank (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	M ay 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 ESG	27,500,000	27,500,000	M arch 2031	Fixed rate	1,964,286	25,535,714
EIB Loan	115,000,000	-	up to 12 years after disbursement	Rate indexed to the EIB's cost of funds on disbursement	-	-
C o mmercial P aper P ro gramme
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	-	-
Lo ans
Long-term investment	13,000,000	13,000,000	M arch 2026	Variable rate indexed to Euribor	2,000,000	11,000,000
R efundable grants
AICEP	30,447,309	30,447,309	November 2027	Fixed rate	7,219,439	23,227,870
B ank 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 31 March 2024, the average cost of debt, considering the interest rate, annual fees and hedging operations, was 2% (31 December 2023: 2%), supported by hedging via swaps.

As at 31 March 2024, the Group had 48% of its financing associated with the compliance with sustainability commitments or the financing of assets previously considered ESG (31 December 2023: 42%).

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

	Non-current loans
Amounts in Euro	31-03-2024	31-12-2023
Non-current
1 to 2 years	144,640,074	156,640,074
2 to 3 years	217,140,074	261,140,074
3 to 4 years	19,640,074	19,640,074
4 to 5 years	112,710,207	112,601,298
M ore than 5 years	37,857,143	12,678,571
	531,987,573	562,700,091
Comissions	(2,658,825)	(2,614,750)
	529,328,748	560,085,341

As at 31 March 2024, the Group had contracted Commercial Paper Programmes, contracted and undisbursed longterm financing, as well as available and undrawn credit facilities of Euro 304,950,714 (31 December 2023: Euro 292,631,270).

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

Amounts in Euro	31-03-2024 31-12-2023
Interest-bearing liabilities	633,552,155 659,344,463
Cash and cash equivalents (Note 5.6)	(189,926,381) (169,464,967)
Interest-bearing net debt	443,625,774 489,879,496
Lease liabilities (Note 5.5)	71,572,055 69,996,821
Interest-bearing net debt with lease liabilities	515,197,829 559,876,317

Interest-bearing liabilities – Movements

Amounts in Euro	31-03-2024	31-12-2023
B alance as at 1 January	659,344,463	725,301,722
Payment of interest-bearing liabilities	(75,857,143)	(107,276,122)
Receipts from interest-bearing liabilities	50,000,000	15,000,000
Repayable grants	108,910	(7,219,438)
Change in borrowing costs	(44,075)	865,333
Change in the perimeter	-	32,672,968
C hange in interest-bearing debt	(25,792,308)	(65,957,259)
Gro ss interest-bearing debt	633,552,155	659,344,463

5.5 Lease liabilities

Lease liabilities - Nature

			31-03-2024			31-12-2023
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Forestry lands	56,184,122	3,323,162	59,507,284	55,314,521	3,183,910	58,498,431
Buildings	1,236,786	544,215	1,781,000	1,374,377	540,140	1,914,517
Vehicles	4,616,563	1,949,940	6,566,502	3,815,266	1,580,224	5,395,490
Software licenses	-	59,340	59,340	-	94,312	94,312
Other lease liabilities	1,904,685	1,753,244	3,657,928	2,344,597	1,749,474	4,094,071
	63,942,155	7,629,900	71,572,055	62,848,761	7,148,060	69,996,821

Lease liabilities - Movements

Amounts in Euro	2024	2023
B alance as at 1 January	69,996,821	61,641,049
Contract amortisation	(3,778,496)	(10,694,178)
New contracts	3,534,137	16,003,677
Interest expense	664,407	2,517,826
Other changes	1,155,186	528,447
T o tal changes in related liabilities	1,575,234	8,355,772
B alance as at 31 D ecember	71,572,055	69,996,821

Lease liabilities - Future liabilities

	31-03-2024					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	5,140,140	2,489,760	7,629,900	4,716,806	2,431,254	7,148,060
1 to 2 years	4,056,322	2,276,430	6,332,752	3,897,834	2,229,000	6,126,834
2 to 3 years	3,947,487	2,077,309	6,024,796	3,567,730	2,044,103	5,611,833
3 to 4 years	3,057,279	1,891,834	4,949,113	2,949,250	1,867,883	4,817,133
4 to 5 years	2,459,126	1,726,103	4,185,229	2,431,219	1,711,124	4,142,343
M ore than 5 years	31,350,089	11,100,176	42,450,266	30,952,202	11,198,416	42,150,618
P resent value o f liabilities	50,010,444	21,561,611	71,572,055	48,515,041	21,481,780	69,996,821

5.6 Cash and cash equivalents

Amounts in Euro	31-03-2024	31-12-2023
Cash	38,454	42,100
Short-term bank deposits	54,887,927	34,422,867
Other short-term investments	135,000,000	135,000,000
	189,926,381	169,464,967

As at 31 March 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.

5.7 Net financial results

Amounts in Euro	3 months 31-03-2024	3 months 31-03-2023
Interest paid on debt securities and bank debt	(6,262,071)	(4,918,007)
Commissions on loans and expenses with the opening of credit facilities	(766,181)	(730,316)
Interest paid using the effective interest metho d	(7,028,252)	(5,648,323)
Interest paid on lease liabilities	(664,407)	(583,751)
F inancial expenses related to the Gro up's capital structure	(7,692,659)	(6,232,074)
Gains / (Losses) on financial instruments – interest-rate hedging	-	1,678,243
Gains / (Losses) on financial instruments – trading	(5,377,091)	-
Other financial expenses and losses	(263,710)	(299,688)
F inancial expenses and lo sses	(13,333,461)	(4,853,519)
Interest earned on financial assets at amortised cost	1,097,978	1,507,826
Favourable exchange rate differences	154,837	228,249
Gains on financial instruments – hedging (Note 8.1)	2,909,136	-
Gains / (Losses) on financial instruments – hedging (Note 8.1)	-	440,771
Gains on compensatory interest	359,553	-
F inancial inco me and gains	4,521,504	2,176,846
F inancial pro fit/ (lo ss)	(8,811,957)	(2,676,673)

Financial results were negative Euro 8.8 million (31 March 2023: negative 2.7 million; in the last quarter of 2023: negative Euro 3.6 million), reflecting a worsening of Euro 6.1 million compared to the same period last year.

An exceptional (non-cash) effect of negative Euro 4.2 million and an unfavourable evolution of the foreign exchange result, compared to a positive result in the same period last year, contributed to this result.

Financing costs remained stable despite the rise in interest rates, benefiting from the interest rate risk hedging policy.

6. Income tax

6.1 Income tax for the period

6.1.1. Income tax recognised in the consolidated income statement

Amounts in Euro	3 months 31-03-2024	3 months 31-03-2023
Current tax	25,819,460	26,524,713
Change in uncertain tax positions in the period	(2,207,643)	(829)
Deferred tax (Note 6.2)	1,224,558	(1,637,029)
	24,836,375	24,886,855

As at 31 March 2024, current tax includes Euro 21,455,779 (31 March 2023: Euro 24,745,431) regarding the liability created under the aggregated income tax regime of The Navigator Company, S.A..

As at 31 March 2024 and 31 March 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:

	31-03-2024	31-03-2023
Portugal
Nominal income tax rate	21.0%	21.0%
M unicipal surcharge	1.5%	1.5%
	22.5%	22.5%
State surcharge – on taxable income between Euro 1,500,000 and Euro 7,500,000	3.0%	3.0%
State surcharge – on taxable income between Euro 7,500,000 and Euro 35,000,000	5.0%	5.0%
State surcharge – on taxable income above Euro 35,000,000	9.0%	9.0%

Reconciliation of the effective income tax rate for the period

	3 months	3 months
Amounts in Euro	31-03-2024	31-03-2023
P ro fit befo re inco me tax	88,925,967	96,570,774
Expected tax at nominal rate (21%)	18,674,453	20,279,863
M unicipal surcharge (2023: 1.24% ; 2022: 1.38%)	1,543,439	1,435,425
Derrama estadual (2023; 3,84% ; 2022: 5.23%)	3,529,919	3,059,128
T ax resulting fro m the applicable rate	23,747,811	24,774,415
N o minal tax rate fo r the perio d	26.7%	25.7%
Differences (a)	983,797	(132,235)
Autonomous taxation	104,767	244,675
	24,836,375	24,886,855
Effective tax rate	27.9%	25.8%
(a) This amount concerns mainly:
	31-03-2024	31-03-2023
Capital gains/ (losses) for tax purposes	(2,896)	1,088
Capital gains/(losses) for accounting purposes	2,521	(1,476)
Tax benefits	(1,519,377)	(313,927)
Other	5,097,195	(166,540)
	3,577,443	(480,855)
T ax effect (27.5%)	983,797	(132,235)

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

Amounts in Euro	31-03-2024	31-12-2023
A ssets
Amounts pending repayment	20,593,177	18,385,534
	20,593,177	18,385,534
Liabilities
Corporate Income Tax – IRC	37,182,387	4,727,342
Additional tax liabilities (IRC)	11,649,263	18,100,389
	48,831,650	22,827,731

Detail of Corporate Income Tax – IRC (net)

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

Amounts in Euro	31-03-2024	31-12-2023
Income tax for the period	25,819,460	83,576,447
Payments on account, special and additional payments on account	-	(75,943,340)
Withholding tax recoverable	(735,527)	(1,798,031)
Corporate Income Tax payable / (repayable) from previous periods	4,727,342	-
Other payables / (receivables)	7,371,112	(1,107,734)
	37,182,387	4,727,342

Amounts pending repayment

Amounts in Euro	31-03-2024	31-12-2023
2005 Corporate Income Tax (RETGS) – Proceeding 1259/ 09.3BESNT	13,886,728	13,886,728
2018 Corporate Income tax (RETGS) – CAAD Proceeding 103/2023	1,749,389	1,749,389
RFAI 2010 to 2012 – compensatory interest	494,856	494,856
2016 Corporate Income Tax – Navigator Tissue Rodão – CAAD Proceeding 575/2020	861,866	861,866
2017 Corporate income tax – CAAD Proceeding 756/2022	1,379,125	1,379,125
2015 Proceeding – Proceeding 21/22.2BALSB	2,207,643	-
Other	13,570	13,570
	20,593,177	18,385,534

The movements in the period are detailed as follows:

Amounts in Euro	31-03-2024	31-12-2023
B alance at the beginning o f the perio d	18,385,534	16,216,543
Increases	2,207,643	3,142,084
Payments / (receipts)	-	(335,564)
Reversals	-	(637,529)
	20,593,177	18,385,534

Uncertain tax positions –Liabilities

Amounts in Euro	31-03-2024	31-12-2023
B alance at the beginning o f the perio d	18,100,389	14,762,361
Increases	-	6,276,135
Payments / (receipts)	-	222,634
Transferência	(6,451,126)	-
Reversals	-	(3,160,741)
C hange in the perio d	(6,451,126)	3,338,028
	11,649,263	18,100,389

Taxes paid in litigation

As at 31 March 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	31-03-2024	31-12-2023
2005 Aggregate Corporate Income Tax (Note 10) 2005) – Proceeding no. 88/13.4BEALM	10,394,386	10,394,386
2006 Aggregate Corporate Income Tax (Note 10.3) – Proceeding no. 909/11.6 BEALM	8,150,146	8,150,146
2018 Aggregate Corporate Income Tax – Proceeding no. 103/2023 and no. 48/23.5BEALM	11,138,180	11,138,180
2015 Corporate Income Tax – Navigator Tissue Ródão, S.A. - Proceeding no. 235/23.8BECTB	7,586,361	7,586,361
State Surcharge 2015 II – Proceeding no. 453/23.9BEALM	6,970,541	6,970,541
State Surcharge 2016 – Proceeding no. 457/21.6BEALM	3,761,397	3,761,397
State Surcharge 2017 – Proceeding no. 456/21.8BEALM	8,462,724	8,462,724
State Surcharge 2018 – Proceeding no. 707/21.9 BEALM	12,223,705	12,223,705
State Surcharge 2019 – Proceeding no. 557/23.8BEALM	2,466,974	2,466,974
State Surcharge 2020 – Proceeding no. 26/24.9BEALM	5,183,000	5,183,000
	76,337,414	76,337,414

6.2 Deferred taxes

Movements in deferred taxes

	As at 1		Income Statement		As at 31 March
	January
Amounts in Euro	2024	Increases	Decreases	Equity	2024
Temporary differences originating deferred tax assets
Taxed provisions	16,674,924	-	(1,341,798)	-	15,333,126
Adjustment of property, plant and equipment	32,384,050	-	(3,931,393)	-	28,452,657
Deferred accounting gains on intra-group transactions	11,750,244	5,238,334	-	-	16,988,578
Valuation of biological assets	24,904,297	-	(30,495)	-	24,873,802
Conventional capital remuneration	280,000	-	-	-	280,000
Tax losses	52,846	-	-	-	52,846
	86,046,361	5,238,334	(5,303,686)	-	85,981,009
Temporary differences originating deferred tax liabilities
Pensions and other post-employment benefits	(795,430)	-	-	-	(795,430)
Financial instruments	(18,072,331)	-	-	(3,845,082)	(21,917,413)
Valuation of biological assets	(3,519,844)	-	-	-	(3,519,844)
Adjustment of property, plant and equipment	(286,279,805)	(940,582)	3,300,946	-	(283,919,441)
Fair value calculated in business combinations	(39,840,800)	-	1,760,391	-	(38,080,409)
Others	(3,714,470)	(8,348,305)		387,483	(11,675,292)
	(352,222,680)	(9,288,887)	5,061,337	(3,457,599)	(359,907,829)
Deferred tax assets	23,653,501	1,440,542	(1,458,514)	-	23,635,529
Deferred tax liabilities	(95,856,013)	(2,554,444)	1,347,858	(959,953)	(98,022,552)

	As at 1	Income Statement			As at 31 December
Amounts in Euro	January 2023	Increases	Decreases	Equity	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	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
Valuation 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
	98,926,032	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)
Valuation of biological assets	(5,403,744)	-	1,883,900	-	(3,519,844)
Adjustment of property, plant and equipment	(300,707,813)	(4,124,908)	18,556,522	-	(286,279,805)
Fair value calculated in business combinations	-	-	-	-	(39,840,800)
Others	(3,862,494)	-	462,851	331,950	(3,714,470)
	(357,507,019)	(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)	(1,143,770)	5,753,122	7,971,861	(95,856,013)

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

7. Payroll

7.1 Payroll costs

Amounts in Euro	3 months	3 months
	31-03-2024	31-03-2023
Remuneration of Corporate Bodies – fixed (Note 7.3)	1,028,211	812,201
Remuneration of Corporate Bodies – variable	1,069,197	1,514,080
Other remunerations	34,314,554	32,840,168
Social Security contributions	6,921,272	6,369,172
Post-employment benefits (Note 7.2.4)	302,983	307,323
Other payroll costs	6,206,370	2,706,366
P ayro ll co sts	49,842,587	44,549,310

Navigator's good performance in the first 3 months 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.

Number of employees by segment at the end of the period

	31-03-2024	31-12-2023	Variation 23/22
Pulp to M arket	269	272	(3)
UWF	1,786	1,808	(22)
Tissue	587	587	-
Corporate	796	801	(5)
	3,438	3,468	(30)

Other Payroll costs are detailed as follows during the periods ended 31 March 2024 and 2023:

Amounts in Euro	31-03-2024	31-03-2023
Training	407,358	382,038
Social action	569,998	825,329
Insurance	1,493,167	1,171,414
Compensations	3,716,701	247,177
Other	19,146	80,408
	6,206,370	2,706,366

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 31 March 2024, three Defined Contribution plans were in force covering 3,214 employees (31 December 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:

		31-03-2024		31-12-2023
Amounts in Euro	No. Benef.	Amount	No. Benef.	Amount
Past service liabilities
Active employees, including individual accounts	352	50,509,668	352	50,509,668
Alumni	112	17,469,425	112	17,469,425
Retired employees	622	90,277,772	622	90,277,782
M arket value of pension funds		(161,085,365)		(159,034,022)
T o tal net liabilities (N o te 4.2)	1,086	(2,828,500)	1,086	(777,147)

Changes in liabilities with defined benefit plans

2024	Opening balance Remeasurement		Current services Interest expenses expenses		Actuarial deviations	Payments performed	Closing balance
Amounts in Euro
Pensions with autonomous fund	158,256,875	-	18,878	5,398,760	1,479,940	(6,897,588)	158,256,865
	158,256,875	-	18,878	5,398,760	1,479,940	(6,897,588)	158,256,865

2023	Opening	balance Remeasurement		Current services Interest expenses expenses		Payments performed	Closing balance
Amounts in Euro
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

Funds

Funds allocated to the defined benefit pension plans – Evolution

Amounts in Euro	2024	2023
Opening balance	159,034,022	154,433,916
Charge for the period	-	-
Expected income for the period	5,291,759	5,291,759
Remeasurement	3,657,182	6,205,945
Pensions paid	(6,897,598)	(6,897,598)
C lo sing balance	161,085,365	159,034,022

The assets of the pension fund related to the defined benefit plan are under the management of Ageas Pensões, Schroders, Santander AM and Julius Baer, as detailed below:

Amounts in Euro	31-03-2024	31-12-2023
Defined benefits and Conta 1:
AGEAS - Pensions	205,709	(17,192)
Schroders	56,211,706	64,806,718
Santander AM	56,622,063	65,605,927
Julius Baer	20,046,248	-
Account 1 - Julius Baer	27,999,638	28,638,569
T o tal defined benefits and C o nta 1	161,085,365	159,034,022

Funds allocated to defined benefit plans - Composition of assets

Amounts in Euro	31-03-2024	%	31-12-2023	%
Securities listed in the market
Bonds	95,619,246	59.36%	96,701,081	60.81%
Shares	38,745,974	24.05%	38,457,610	24.18%
Public debt	16,252,443	10.09%	17,419,598	10.95%
Liquidity	6,498,127	4.03%	2,206,803	1.39%
Other short-term investments	3,969,576	2.46%	4,248,930	2.67%
	161,085,365	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 contribution plan

As at 31 March 2024 and 31 December 2023, three 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 Ageas Pensões, as detailed below:

Amounts in Euro	No.
	Beneficiaries	Profitability %	31-03-2024		Beneficiaries Profitability %	31-12-2023
Defined Contribution (Ageas Pensions):
Defensive sub-fund	143	2.75%	7,074,860	122	7.17%	6,262,270
Conventional sub-fund	421	3.61%	16,047,868	392	8.50%	15,291,344
Dynamic sub-fund	762	5.14%	15,059,270	737	10.90%	15,713,487
Aggressive sub-fund	1,888	6.71%	6,372,325	1,949	13.30%	6,398,935
T o tal defined co ntributio n	3,214		44,554,322	3,200		43,666,036

* of which 284 are former employees

7.2.4. Expenses incurred with post-employment benefit plans

The effect in the income statement for the periods ended 31 March 2024 and 2023 was as follows:

		31-03-2024				31-03-2023
Amounts in Euro	Current services expenses	Net interest	Defined contribution – Contributions for the period	Impact on net result (Note 7.1)	Current services expenses	Net interest	Defined contribution – Contributions for the period	Impact on net result (Note 7.1)
Pensions with autonomous fund	-	-	-	-	-	-		-
Defined contributions plans	-	-	302,983	302,983	-	-	307,323	307,323
	-	-	302,983	302,983	-	-	307,323	307,323

8. Financial instruments

8.1 Derivative financial instruments

Movements in derivative financial instruments

			31-03-2024			31-12-2023
Amounts in Euro	Trading derivatives	Hedging derivatives	Net total	Trading derivatives	Hedging derivatives	Net total
B alance at the beginning o f the perio d	(4,068,868)	17,835,988	13,767,121	(3,106,233)	46,938,143	43,831,911
New contracts / settlements	-	30,038,101	30,038,101	(1,999)	(9,722,524)	(9,724,524)
Change in fair value through profit or loss (Note 5.8)	(5,377,091)	2,909,136	(2,467,955)	(960,636)	9,722,523	8,761,887
Change in fair value through other comprehensive income	-	(29,102,154)	(29,102,154)	-	(29,102,154)	(29,102,154)
B alance at the end o f the perio d	(9,445,959)	21,681,071	12,235,112	(4,068,868)	17,835,988	13,767,121

8.1.1 Detail and maturity of derivative financial instruments by nature

						31-03-2024
Amounts in Euro	Notional	Currency	Maturity	Positive (Note 4.2)	Negative (Note 4.3)	Net
Hedging
Hedging (future sales)	355,000,000	USD	2024	-	(2,543,318)	(2,543,318)
Hedging (future sales)	117,500,000	GBP	2024	-	(405,982)	(405,982)
Interest rate swaps – Bonds	345,000,000	EUR	2028	17,904,206	-	17,904,206
Energy	66,055,857	EUR	2025	8,104,183	(578,493)	7,525,690
BHKP pulp	28,719,000	USD	2024		(799,525)	(799,525)
				26,008,389	(4,327,318)	21,681,071
Trading
Exchange rate forwards (future sales)	46,000,000	USD	2024	-	(9,424,883)	(9,424,883)
Exchange rate forwards (future sales)	13,600,000	GBP	2024	-	(21,076)	(21,076)
				-	(9,445,959)	(9,445,959)
				26,008,389	(13,773,277)	12,235,112

						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
Exchange rate forwards (future sales)	(46,000,000)	USD	2024	1,014,913	(4,987,262)	(3,972,349)
Exchange rate forwards (future sales)	(6,099,807)	GBP	2024	-	(96,519)	(96,519)
				1,014,913	(5,083,781)	(4,068,868)
				19,458,938	(5,691,819)	13,767,120

Cash flow hedge | Exchange rate risk EUR/USD and EUR/GBP

During the first quarter 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.

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.

Similarly, 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 199,740 MWh of electricity and 581,064 MWh of natural gas, starting in 2025.

Pulp Hedging – 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.

9. Provisions, commitments and contingencies

9.1 Provisions

Movements in provisions

	Legal	Other
Amounts in Euro	proceedings	provisions	Total
1 January 2023	5,106,975	23,325,900	28,432,877
Increases	-	-	-
Reversals	-	-	-
Impact o n pro fit/ (lo ss) fo r the perio d	-	-	-
Exchange rate adjustment	(3,088)	-	(3,088)
Other transfers and adjustments	7,856	-	7,856
31 M arch 2023	5,111,742	23,325,900	28,437,645
Increases	601,811	217,808	819,619
Reversals	(25,660)	(1,800,000)	(1,825,660)
Impact o n pro fit/ (lo ss) fo r the perio d	576,151	(1,582,192)	(1,006,041)
Exchange rate adjustment	3,088	-	3,088
Other transfers and adjustments	1,818,352	(1,415,758)	402,594
31 D ecember 2023	7,509,332	20,327,950	27,837,286
Increases	-	-	-
Reversals	-	-	-
Impact o n pro fit/ (lo ss) fo r the perio d	-	-	-
Other transfers and adjustments	-	12,288	12,288
31 M arch 2024	7,509,332	20,340,238	27,849,574

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

9.2 Commitments

Guarantees provided to third parties

Amounts in Euro	31-03-2024	31-12-2023
Guarantees pro vided
Navigator guarantees for EIB loans	21,583,333	22,083,333
Ocean Network Express	2,751,947	2,751,947
Portuguese Tax Authorities	ii) 9,288,070	-
Comissão Coordenação Desenvolvimento Regional	354,083	354,083
IAPM EI	1,280,701	1,280,701
Agência Portuguesa Ambiente	3,337,887	2,846,271
Simria	338,829	338,829
Other	974,390	838,256
	39,909,240	30,493,420

Purchase commitments

Amounts in Euro	31-03-2024	31-12-2023
P urchase co mmitments
Property, plant and equipment – Industrial equipment	71,546,623	57,737,388
Wood
Commitments with acquisitions in the subsequent period	186,500,000	362,700,000
Commitments to long-term acquisitions	109,800,000	117,600,000
	367,846,623	538,037,388

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 153 million have already been invested until 31 March 2024.

10. Group structure

10.1Companies included in the consolidation perimeter

10.1.1. Navigator Group subsidiaries

		Share equity owned
	31-03-2024		31-12-2023
Company	Head Office	Direct Indirect		Total	Total	Main activity
P arent co mpany:
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 M anagement of industrial real estate
Navigator Pulp 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	Ireland	100.0	-	100.0		100.0 M anagement of shareholdings
Empremedia RE , DAC	Ireland	-	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 activity
Enerpulp – Cogeração Energética de Pasta, S.A.	Portugal	100.0	-	100.0		100.0 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 M anutenção Industrial, ACE	Portugal	-	73.8	73.8	73.8
Ema Setúbal – Engenharia e M anutenção Industrial, ACE	Portugal	-	79.7	79.7	79.7	Provision of industrial maintenance services
Ema Figueira da Foz – Engenharia e M anutenção 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
Navigator Fiber Solutions , S.A.	Portugal	0.1	99.9	100.0		100.0 Wholesale and manufacture of packaging and other articles of 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.	Portugal	-	100.0	100.0	100.0	Tissue paper production
Navigator Tissue Iberica , S.A.	Spain	-	100.0	100.0		100.0 Sale of tissue paper
Navigator Tissue Ejea, SL	Spain	100.0	-	100.0		100.0 Tissue paper production
Navigator Tissue France, EURL	France	-	100.0	100.0		100.0 Sale of tissue paper
Portucel M oçambique – Sociedade de Desenvolvimento Florestal e Industrial, Lda	M ozambique	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 M anagement of hunting resources
Afocelca – Agrupamento complementar de empresas para protecção contra incêndios, ACE	Portugal	-	64.8	64.8		64.8 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	M orocco	-	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
Navigator France, EURL	France	-	100.0	100.0	100.0
Navigator Paper Company UK, Ltd	United Kingdom	-	100.0	100.0	100.0
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	Provision of sales intermediation services
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 M exico	M exico	25.0	75.0	100.0	100.0
Navigator M iddle East Trading DM CC	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 M adeira, ACE	Portugal	97.0	3.0	100.0		100.0 Sale of timber

10.1.2. Incorporated joint operations

		Share equity owned
				31-03-2024	31-12-2023
Company	Head Office	Direct Indirect		Total	Total	Main activity
Pulpchem Logistics, A.C.E.	Portugal	50	-	50		50 Purchases of materials, subsidiary materials and services used in the pulp and paper production processes

10.2 Changes in the consolidation perimeter

During the three-month period ended 31 March 2024, there were no changes in the consolidation perimeter.

10.3 Transactions with related parties

Balances with related parties

		31-03-2024	31-12-2023
Amounts in Euro	Receivables (Note 4.2)	Payables (Note 4.3)	Receivables (Note 4.2)	Payables (Note 4.3)
Shareho lders (N o te 5.2)
Semapa – Soc. de Investimento e Gestão, SGPS, S.A.	102	3,619,692	-	952,804
Other subsidiaries o f Semapa Gro up
Secil – Companhia Geral Cal e Cimento, S.A.	-	49,605	-	40,974
Secil Britas, S.A.	-	134,033	-	111,647
Unibetão, S.A.	-	152,947	-	435,100
Other related parties
Hotel Ritz, S.A.	-	2,516	-	1,672
	102	3,958,794	-	1,542,197

Transactions with related parties in the period

		31-03-2024	31-03-2023
Amounts in Euro	Purchase of goods and services	Sales and services rendered	Purchase of goods and services	Sales and services rendered
Shareho lders (N o te 5.2)
Semapa – Soc. de Investimento e Gestão, SGPS, S.A.	2,942,839	42	2,624,273	-
	2,942,839	4 2	2,624,273	-
Other subsidiaries o f Semapa Gro up
Secil – Companhia Geral Cal e Cimento, S.A.	35,965	-	58,986	-
Secil Britas, S.A.	28,680	-	62,686	-
Unibetão, S.A.	220,404	-	5,703	-
	285,049	-	127,375	-
Other related parties
Hotel Ritz, S.A.	844	-	829	-
	844	-	829	-
	3,228,732	4 2	2,752,476	-

On 1 February 2013, a contract to render administrative and management services was signed between Semapa - Sociedade de Investimentos e Gestão, SGPS, S.A. (currently owner of 69.97% of the Group´s share capital) and Navigator Group, establishing a remuneration system based in equal criteria for both parties in the continuous cooperation and assistance relationships, that meets the rules applicable to commercial relationships between Group companies.

The operations performed with the Secil Group arise from normal market operations.

In the identification of 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 Member

Mariana Rita Antunes Marques dos Santos Member

Sandra Maria Soares Santos Member

Vítor Paulo Paranhos Ferreira Board Member