The Navigator Company

Quarterly Report • Jun 25, 2025

Condensed Interim •Consolidated Financial Statements – Q1 2025 1 | 63

THE NAVIGATOR COMPANY

PERFORMANCE FIRST QUARTER 2025	3
Analysis First Quarter	3
LEADING INDICATORS	4
ANALYSIS OF RESULTS	5
The printing and writing papers industry	5
Pulp Market	7
Growth and strong performance in Tissue business	8
Packaging - From Fossil to Forest – investment in sustainability, innovation and change	9
78% of Power Output generated from renewable energy sources	10
Sales growth and price resilience in Packaging and Tissue lead to EBITDA of €116 million	11
Financial Results benefit from exchange rate and interest rate hedging policy	11
Free cash flow generation of €57 million	12
Green Financing consolidates Sustainable Financial Management	12
Capital expenditure of € 36 million	13
From Forest to the Future	14
Innovation & Sustainability	14
External recognition of our commitment to sustainability	15
OUTLOOK	15
Customs Tariffs	16
FINANCIAL STATEMENTS	17

PERFORMANCE FIRST QUARTER 2025

The first quarter of 2025 brought a rapid worsening of geopolitical uncertainties and growing trade tensions, resulting in an upsurge in protectionism and significant cooling of the economy in Navigator's main markets.

Despite this troubled environment, Navigator's business pointed to a positive trend in relation to the previous quarter, with increased sales and healthy order books for Printing and Writing paper, Packaging and Tissue paper. The quarter also saw a rise in the benchmark index for pulp prices, while Packaging and Tissue paper prices remained resilient, in contrast to the drop in the benchmark index for Printing and Writing paper.

Navigator has pressed ahead with moves to strengthen its competitive advantages and to invest in diversification of its business. We ended the quarter with the Printing and Writing paper segment representing a lower proportion of turnover, at 55% (vs. 57% in 2024), while the new segments - Tissue and Packaging - already account for close to 30% (up from 26% in 2024). In line with our strategy of diversification, we started work this quarter on the preliminary engineering for conversion of PM3 paper machine, at our integrated pulp and paper mill in Setúbal, for production of low-grammage flexible packaging paper, whilst retaining the possibility of using the machine for Printing and Writing paper. The final investment decision for this conversion project has been taken, and start-up is planned for the end of the third quarter next year. This project reinforces the company's strategic commitment to innovative packaging solutions, aligned with the global demand for alternatives to fossil resources and with the transition to biodegradable and recyclable materials.

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

Analysis First Quarter

• Turnover stood at € 529 million, up 2% on Q4 2024, down by 1% on Q1 2024;
• EBITDA totalled € 116 million (in line with Q4 2024 and down 13% on Q1 2024), with an EBITDA margin of 22% (down 0.4 pp on Q4 2024 and down 3.0 pp on Q1 2024);
• Net debt stood at € 660 million on 31st of March (excluding the effect of IFRS 16), up by only € 43 million on December, despite an interim dividend payout of € 100 million in the quarter and the high level of capex. Net debt / EBITDA ratio of 1.25x;
• The volume of Printing and Writing and Packaging paper sales stood at 325 thousand tons (up 17% on Q4 2024 and down 8% on Q1 2024 - the best result in the last 9 quarters);
• The volume of pulp sales stood at 100 thousand tons (down 12% on Q4 2024 and down 9% on Q1 2024), in a quarter when less pulp was available for sale on the market due to the planned maintenance stoppage at the Aveiro mill;
• The volume of Tissue sales stood at close to 61 thousand tons (down 5% on Q4 2024 and up 62% on Q1 2024). The growth in relation to first quarter of 2024 was due in part to integration of Navigator Tissue UK, which joined the group in the second quarter of 2024;

• Business continues to grow in the Packaging segment, with the volume of orders growing essentially as the result of: (i) an upturn in demand; (ii) development of new product ranges in the flexible packaging sector, making it possible to diversify our Packaging business and to continue to grow our client and market base; thanks to this success, the sales volume in this segment grew by 31% in relation to the first quarter of 2024;
• Our e-commerce portal - NVG Hub - was launched in 2021, and in 2024 we added an online business model for sales by pallet and deliveries between 24 and 72 hours, aimed at smaller clients, in selected European regions. In the first quarter, online orders already accounted for approximately 30% of all orders (Paper, Packaging and Tissue). NVG Hub is currently available in more than 60 countries and offers sales by pallet in Spain and Poland. For 2025, the strategy is to expand sales by pallet to Italy, France and the Netherlands;
• The first quarter also brought Navigator's best ever safety indicators, in particular for the frequency rate (for accidents at work leading to sick leave), underlining our commitment to Occupational Health and Safety, through our Mission Zero strategy and ongoing work in prevention, training and improvement of management systems, which has involved investment of 27 million over the past five years.

Million euros	Q1 2025	Q1 2024	Q1 25/Q1 24 (8)	Q4 2024	Q1 25/Q4 24 (8)
Total Sales	529.3	536.4	-1.3%	519.7	1.8%
EBITDA (1)	115.6	133.3	-13.3%	115.5	0.0%
Operating Profits (EBIT)	72.9	97.7	-25.5%	62.2	17.1%
Financial Results	- 7.1	- 8.8	19.5%	- 16.1	56.0%
Net Earnings	48.3	64.1	-24.6%	45.5	6.1%
Cash Flow	91.0	99.6	- 8.6	98.8	- 7.8
Free Cash Flow (2)	57.0	46.3	10.8	25.8	31.2
Capex	36.4	40.7	- 4.3	89.8	- 53.4
Net Debt (3)	660.3	443.6	216.7	617.3	43.0
EBITDA/Sales	21.8%	24.9%	-3.0 pp	22.2%	-0.4 pp
ROS	13.8%	18.2%	-4.5 pp	12.0%	1.8 pp
ROCE (4)	14.4%	21.5%	-7.0 pp	13.2%	1.3 pp
ROE (5)	14.0%	19.0%	-4.9 pp	13.6%	0.4 pp
Equity Ratio	42.8%	47.5%	-4.7 pp	40.5%	2.3 pp
Net Debt/EBITDA (6)(7)	1.25	0.88	0.37	1.13	0.12

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 2025 of 1.46; Net Debt / EBITDA Q1 2024 of 1.02;

8.Variation in figures not rounded up/down

Note: Navigator Tissue UK was merged into the group in the 2nd quarter of 2024, meaning that Q1 2024 does not include Navigator Tissue UK.

ANALYSIS OF RESULTS

(Q1 2025 vs. FY 2024)

The positive evolution of sales volume, combined with the success of the diversification strategy - with the new Tissue and Packaging segments already accounting for close to 30% of sales - and the commercial initiatives to grow new products and markets and to protect margins, led to the good results achieved in the quarter.

The printing and writing papers industry

In the first two months of 2025, global apparent demand fell by 1.9% after a year of modest recovery. Printing and Writing (Uncoated Woodfree - UWF) paper was once again the most resilient grade with a decline of 1.9%, compared to Coated (CWF) papers, for which demand dropped by 4.5%. Demand for paper produced from Mechanical pulp (Coated and Uncoated) dropped by 4%.

In Europe, apparent demand for UWF paper was down by 8% this quarter in relation to the first quarter of 2024, due to the shrinking of orders in the last quarter of 2024.

In the United States, demand for UWF fell by 2% in the first quarter, as installed capacity fell by 11% compared to the first quarter of 2024. Apparent consumption of UWF in the rest of the world fell by 0.9%, with China growing 1% (YtD February).

Significantly, UWF has remained the most resilient segment over the years, due to its versatile uses.

Global Demand for P&W paper (in million tons)

Source: PPPC, February (2025 vs. 2024) l * All years YtD February

On the supply side, the first quarter felt the impact of the closure of two European mills, removing 430 thousand tons of annual UWF capacity (approximately 7% of European capacity).

Order intake for European industry increased throughout the first quarter, with growth of 6% compared to the last quarter of 2024, and showed an upward trend, with the month of March closing 5% higher than the same month last year. However, the quarter was down on the strong performance of the same quarter last year.

The benchmark index for Office paper prices in Europe, PIX A4 B-copy, stood at an average of 1,058€/t, down by 4% on the previous quarter and last year. The mix of products and geographical regions in Navigator's total sales this quarter resulted in lower average prices. It should be noted that Navigator's prices for premium and standard products have evolved in line with the market, but increased penetration of economy products this quarter caused our average price to drop further than the PIX A4 B-copy index.

Navigator's sales of Printing & Writing and Packaging papers totalled more than 325 thousand tons in the quarter, up 17% on the previous quarter and down 8% on first quarter of 2024, which was the best quarter in terms of sales volumes in the past two years. In value, sales grew by 7% on the previous quarter and fell by 14% in relation to the first quarter last year.

Pulp Market

After the sharp fall in prices in the second half of 2024 in China (mostly in the third quarter) and in Europe, the first quarter of 2025 saw prices rally, especially in Europe. The benchmark index for hardwood pulp - PIX BHKP in dollars - ended the quarter at 1,160 USD/t, up by approximately 16%. The price difference between China and Europe started the year in China's favour, but turned around over the course of the quarter, ending as favourable to Europe.

In China, after benchmark prices hit their lowest point in the first week of 2025 (544 USD/t), ending the steepest and fastest downwards cycle in recent years, the market started to move in the opposite direction, rising to 588 USD/t at the end of the first quarter of 2025 (up 8% from the lowest point at the start of the year).

The dynamics of supply and demand were crucial in sending prices upwards. Up to February, demand for hardwood pulp in China rose by 13.5%, compared with the first quarter of 2024, which had been marked by severe destocking. Despite the growth, demand cooled in relation to the fourth quarter, when lower prices had driven restocking.

In Europe, the pulp market was sustained by stable demand from the Packaging and Tissue sectors. All the same, consumption was down by 2.2% in relation to the same period in 2024. This indicator is influenced by the level of consumption in early 2024, which was particularly strong.

In this context, global demand in the first two months of 2025 grew, compared with the first quarter, by 4.6% in bleached chemical pulp (BCP), 6.7% in hardwood pulp (HW), and 6.1% in eucalyptus pulp (EUCA), most strongly in China (+12% BCP, +13.5% HW, +11.3% EUCA), in contrast to Europe (-2.1% BCP, -2.2% HW, -3.5% EUCA).

Growth in global hardwood fibre demand was accordingly driven by growth in China (up 13.5%), despite the fall in Europe (down 2.2%).

Global Demand of Pulp (in million tons)

Source: PPPC, February (2025 vs. 2024)

Hardwood fibre stocks around the globe have stabilised. In other words, stocks at producers, ports and consumers remain relatively in line with the patterns observed in recent years.

Pulp sales therefore stood at 100 thousand tons, representing a reduction of 12% in relation to the previous quarter and 9% compared with the first quarter, due to the planned shutdown at the Aveiro mill. However, the value of sales grew by 7% over the previous quarter, thanks to rising prices, but was down by 14% on the same period in 2024.

Growth and strong performance in Tissue business

In Europe, demand for tissue paper had a more subdued start to the year in 2025, with a slight decline of 0.1% in January and February compared to the same period last year. This compares to strong growth of +6.2% in 2024, when the market benefited from increased restocking and higher household purchasing power.

Navigator's Tissue sales (finished products and reels) totalled 61 thousand tons in the first quarter, down by 5% compared to the previous quarter, reflecting lower sales of reels and the usual seasonal impact on finished products in this period, and an increase of 62% compared to the same period last year. In value terms, sales fell by 3% compared to the previous quarter and grew by 76% in relation to the first quarter last year.

The YoY figures were boosted by the integration of Navigator Tissue UK, at the start of the second quarter of 2024, 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 first quarter of 2025, international sales accounted for 81% of turnover in Tissue business. The English market took the largest share, with 36% of sales, followed by Spain, with 28%, and France, which accounted for 15% of sales. In the last two years, acquisitions of new units in Spain and the United Kingdom have enabled us to balance our geographical mix, securing greater resilience for Navigator's Tissue business. On the other hand, finished products represented 98% of total sales, and reels just 2%. In terms of client segment stratification, At Home or Consumer (retail) business has grown in importance,

currently accounting for around 83% of sales, whilst the Away-from-Home segment (wholesalers - Horeca channel and offices) accounts for the remaining 17%

Tissue Sales Q1 2025 1 2 (vs. Q1 2024)

1 tons ²1 st quarter of 2025 includes Tissue UK ³Finished product and reels

Navigator was selected for the "International Investment Award", at the 15th UK-Portugal Business Awards, held in Lisbon in April 2025. This accolade reflected our investment in the United Kingdom, with acquisition of the British company Accrol, now Navigator Tissue UK. Continued international expansion is a major part of Navigator's strategy and this acquisition has clearly shown this to be the way forward. Navigator Tissue UK positions the Group as one of the top four players in the Tissue paper market in the United Kingdom.

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

The European market got off to a lively start in 2025. European deliveries of Kraft papers for flexible packaging (white and brown) reported by CEPI were up by 13% on the same period in 2024.

Our commercial strategy is focused on continued efforts to establish ourselves in these new segments, by expanding the client base, developing new products, above all low-grammage products, and carrying out a substantial number of market trials, in particular, in the food packaging and food service market, for release liners, designed for products such as labels, stickers or feminine hygiene; in the building & construction sector, in multilaminates associated with products for thermal, acoustic and electrical insulation; in formfill, with a view to filling industries, especially the food industry, with papers for use in packaging sugar, flour, rice, pasta, etc…

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 agri-food sector, restaurants, and pharmaceutical and hygiene products etc.), and Boxes (corrugated cardboard boxes for value-added products and food packaging, including cardboards for producing paper cups and food trays). In these products the innovative introduction of the properties of eucalyptus fibre has been crucial in securing wide acceptance and recognition in the market.

As part of the diversification of Packaging business, progress has continued as planned on the project for integrated production of eucalyptus-based Moulded Fibre Products, designed to substitute single-use plastic packaging in the food service and food packaging market, under the gKraft™ Bioshield brand. The facility is one of the largest in Europe and the first such integrated facility in southern Europe, moving into a fast growing, high-potential market.

The start-up of 4 production lines was completed in the first quarter, and these are now operating around the clock, whilst work is proceeding to consolidate the marketing of 5 products for the food sector.

78% of Power Output generated from renewable energy sources

Energy sales in the first quarter of 2025 stood at approximately € 31 million, up by 11% on the previous quarter and down 8% on the same period in 2024.

This reduction was due essentially to lower sales from the combined cycle natural gas plant in Setúbal, operating primarily for self-consumption, with sale of surpluses at market prices, and to the complete shutdown of the renewable cogeneration plant in Aveiro, in February.

Over the course of the first quarter, work started on a new photovoltaic solar facility for self-consumption on the industrial complex in Vila Velha de Ródão. The facility will have rated capacity of 5.3 Mwp and will be concluded by the end of the year.

Construction work is also under way on a new biomass boiler at the industrial complex in Vila Velha de Ródão, planned for completion in December 2025. This boiler will enable us to substitute steam production currently dependent on two natural gas boilers.

Over the period, the Group's industrial units continued to serve the manual Frequency Restoration Reserve Band Market (mFRR Band). This system service, provided to the operator of the power grid by qualified consumers, helps to safeguard the security of supply in the National Electrical System, which has already proved to be decisive for protecting domestic consumers and critical users.

It is not yet clear whether the recent event relating to power distribution in the Iberian Peninsula might happen again, and this has pointed to the need to expand the contribution of demand management in system services, especially in automatic mobilisations mechanisms which complement the existing manual activation procedures.

Sales growth and price resilience in Packaging and Tissue lead to EBITDA of €116 million

Navigator recorded healthy results thanks to the faster pace of new orders for Printing and Writing paper, Packaging and Tissue paper, as well as the resilience of prices for Packaging and Tissue paper.

Navigator has remained focused on managing its variable costs, under pressure from energy prices, with higher costs caused by increases in market indexes and chemicals.

Fixed costs were down on the same period in 2024, with a reduction in real terms of around 2.4%, considering the same operations, in other words, excluding the new Navigator Tissue UK.

In this context, Navigator recorded first quarter EBITDA of € 116 million (in line with Q4 and down by 13% on Q1 2024), with an EBITDA margin of 22% (down 0.4 pp on Q4 2024; down 3.0 pp on Q1 2024).

Financial Results benefit from exchange rate and interest rate hedging policy

Financial results improved by € 1.7 million in relation to the same period in 2024, standing at a loss of € 7.1 million this quarter (vs. € -16.1 in Q4 2024 and € -8.8 million in Q1 2024).

The cost of financing operations stood at € 6 million (vs. € 3.48 million in Q1 2024), reflecting the substitution of finance facilities contracted when market interest rates were at all-time low levels with new facilities contracted with fairly competitive spreads, despite being indexed to higher market benchmarks than in the past.

These are net costs that include the effect of interest income on cash flow surpluses, thanks to efficient management of these surpluses.

Despite the highly volatile exchange rate in the first quarter, the exchange rate risk management policies in force once again proved effective, and the net exchange rate effect recorded for the period was € -2.0 million, compared to € -5.2 million in Q1

1. It should be noted that the financial results for the first quarter of 2024 included a one-off (non-cash) foreign exchange effect of € -4.3 million.

Pre-tax profits totalled € 66 million (vs. € 46 million in Q4 2024 and € 89 million in Q1 2024) and corporation tax payable stood at € 17 million, with an effective tax rate for the period of 26.5%. Net income stood at € 48 million (vs. € 46 million in Q4 2024 and vs. € 64 million in Q1 2024).

Free cash flow generation of €57 million

Free cash flow generation in the quarter stood at € 57 million (vs. approximately € 26 million in the preceding quarter and € 46 million in the same period in 2024).

Cash generation has remained strong, despite the strong investment programme in progress.

Green Financing consolidates Sustainable Financial Management

On 31st March 2025, net debt stood at € 660 million euros, up by € 43 million on December, despite an interim dividend payout of € 100 million during the quarter and the strong investment currently under way. The interest-bearing Net Debt/EBITDA ratio stood at 1.25x, further consolidating the financial strength displayed by the Group.

Debt repayments totalling € 50 million were made over the quarter within the framework of a financial policy built on firm foundations - and despite the current comfortable situation, with significant surpluses - we have continued working to extend debt maturity and at the same time to link borrowing costs to the company's sustainable development criteria on a broader basis.

Average debt maturity therefore remains appropriate, with rationally staggered repayments, more than 73% of total debt tied to sustainability and 89% of total debt issued on a flat rate basis, directly or using interest rate hedges.

Unused long term credit facilities currently total € 115 million.

Debt Maturity Profile Total debt: 854 M€ Average Maturity: 3.5 years 2.4 % Average Costo f Debt Issued (Mar 25) 89 % Fixed Interest Rate 73 % Of total Debt tied to Sustainability Targets Liquidity = Cash 194 M€ + Long Term Unused Credit Lines 115 M€ 308 M 139 M 242 M 20 M 111 M 342 M L I Q U I D I T Y D E C . 2 0 2 5 D E C . 2 0 2 6 D E C . 2 0 2 7 D E C . 2 0 2 8 2029 - 2037 Sustainable

Capital expenditure of € 36 million

Capital expenditure totalled € 36 million in the first quarter of 2025 (compared to € 90 million in Q4 2024 and € 41 million in Q1 2024), of which approximately € 22 million was classified as value-creating environmental or sustainability investment, accounting for approximately 60% 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. Capex projects included the new high efficiency Recovery Boiler in Setúbal (which has started up in the current quarter), the new cogeneration unit at the Tissue plant in Aveiro, the oxygen delignification line in Setúbal, conversion of the Setúbal lime kiln to burning biomass, conversion of burning processes to hydrogen in Aveiro, collection and incineration of malodorous gases (NCGs) in Setúbal and the new biomassfuelled lime kiln 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 for the projects approved, of which the company has already received approximately € 49.2 million, including € 3.5 million in the first quarter of 2025.

In 2025, Navigator plans to start work on the following projects related to the circular economy and waste valorisation: (i) Valorisation of ash from the Biomass Power Plants (BBPs) – potential reclamation of 15 thousand tons of ash over 5 years; (ii) 90% reduction in the production of carbonate sludge as a result of installing a Lime Kiln in Figueira da Foz; (iii) Alteration of fly ash discharge system to the dry method in Setúbal – this will enable us to identify new applications for the valorisation of this waste; (iv) Valorisation of fly ash from production of Low Carbon Clinker – Production of soil-cement; (v) Burning of WWTP sludges in the recovery boiler in Aveiro.

These projects are designed to reduce the disposal of waste at industrial landfill sites and to develop sustainable and valueadded applications for by-products from the industrial process. In addition, they improve the Company's environmental efficiency, they also contribute to solutions for local communities, reducing the material impact of our operations.

From Forest to the Future

Innovation & Sustainability

Sustainability and innovation are both core values for Navigator. They go hand in hand in the company's strategy and are mutually supportive. Navigator's purpose is another clear example of this approach, committing the company to creating sustainable value for all stakeholders, "leaving a better planet for future generations, through natural products that are sustainable, recyclable and biodegradable, that help to sequester carbon and produce oxygen, that protect biodiversity, improve the soil and combat climate change".

Navigator has been developing and investing in the gKRAFT™ sustainable packaging segment, which offers alternatives to fossil-based plastics, supporting the transition to renewable, low carbon products. In particular, we have launched production of Moulded Fibre articles to substitute disposable plastics in the food packaging sector, in alignment with sustainability goals.

Also, to this end, pre-engineering work started in the first quarter of the 2025 for conversion of the PM3 paper machine, at the integrated pulp and paper mill in Setúbal, in order to produce low-grammage flexible packaging papers, and the final investment decision for converting this machine has been taken. This project reinforces the company's strategic commitment to innovative packaging solutions, aligned with the global demand for alternatives to plastic and with the transition to biodegradable and recyclable materials. In contrast to what has been done by many competitors, this conversion of PM3 to Packaging will not prevent continued production of UWF papers using the same machine, if and when necessary. This further adds to the strategy of flexible operation of assets which Navigator has successfully pursued since the pandemic, in line with the evolution of the different markets in which it operates.

PM3 is a Valmet machine installed in 1990 and upgraded several times (1997, 2003, 2007 and 2018). With a width of 4.55m and a speed of 1,160 m/min. PM3 currently has capacity for approximately 180 thousand tons of UWF and is expected to offer outstanding performance in flexible packaging papers, thanks to being larger and highly competitive, in a market dominated by smaller, older and less efficient machines, often not integrated with cellulose production. Conversion of this unit will enable Navigator to diversify and expand its portfolio of sustainable products, increasing its presence in the flexible packaging sector.

The projected investment for this project is around € 30 million (2025-2027), for estimated output of approximately 90-100 thousand tons, a marginal figure in comparison with the alternative of a greenfield project for a new machine, which would involve capex of around € 200 million, for capacity of 100 to 120 thousand tons.

The new operation is planned to start up at the end of the third quarter of 2026.

This conversion will enable Navigator to respond flexibly and efficiently to growing demands from the flexible packaging market, with rates of growth estimated at between 2.5% and 3% up to 2035.

The market has responded enthusiastically to Navigator's distinctive solutions based on Eucalyptus globulus pulp, as demonstrated by growth in the gKRAFT™ brand and the strong performance of gKRAFT™ low grammages for flexible packaging solutions.

In effect, Navigator is continuing to broaden its customer base, which by the end of the first quarter already numbered close to 375 active clients, in an operation 100% based on its own brand - gKraft™.

External recognition of our commitment to sustainability

Our ongoing commitment and investment in consolidating our Responsible Business has also been reflected in positive assessments from independent rating agencies.

Navigator was classified by Sustainalytics as a "2025 ESG Industry Top-Rated Company", reasserting its leadership in the forestry and paper sector. This recognition positions it in the prestigious global list of 2025 ESG Top-Rated Companies, consolidating its position as one of the world's best companies in terms of environmental, social and governance (ESG) practices.

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

OUTLOOK

The current geopolitical situation and the associated volatility is certain to be a central feature of the quarters ahead, in an increasingly unstable global environment, marked by an upsurge in protectionism and growing trading tensions between

economic blocs. The increased uncertainty brought by the rising level of tariffs has brought new risks of a global slowdown, which can already be seen, as well as the risk of higher inflation, in particular in the US. The fluidity of the situation we are currently experiencing makes it particularly difficult to predict the course of demand and prices over the coming months. The ability to adapt to the new macro-economic environment will be crucial for all businesses, and Navigator has already demonstrated its resilience in other, equally troubled market situations.

Customs Tariffs

Increased protectionism, involving application of customs duties, will directly increase costs, at the same time as bringing major changes to market dynamics.

In the Printing and Writing paper market, the United States is not currently self-sufficient and will have to continue importing some of the products it needs. The US' main trading partner in this sector is Canada, which should remain exempt from tariffs, under the USMCA (United States-Mexico-Canada Agreement). North America as a whole (US and Canada) has an overall shortfall in production of these papers, of around 220 to 400 thousand tons, meaning that it needs imports to supply its needs in addition, the third largest producer in the region recently announced the closure of its largest mill (350 thousand tons) by the end of 2025, further aggravating the structural deficit in North America.

As a result, the US' need for imports will have to continue to be met by the few countries with the capacity to supply products that meet the exacting specifications demanded by the region's market, notably a number of manufacturers in Europe and Brazil. At the same time, American producers may focus more on their domestic market, which will also open opportunities in their current export markets.

Asian manufacturers, many of which are currently subject to high anti-dumping duties, and with relatively modest sales to the US, can be expected to play only a small role in this process. This will be especially true for producers in China and Indonesia, which currently have only a small presence in the US market and will therefore not feel the need to repatriate large volumes of exports. In view of the volatility created by the trade policies of the new US administration, it is still too early to predict precisely what the total impact will be on international trade.

In view of the temporary cut in tariffs announced for Europe over the course of the second quarter, Navigator will temporarily increase its stocks in the US meaning that, if the tariffs announced in early April are reinstated, this should only affect the final quarter of the year. We nonetheless hope that negotiations between the US and Europe will be concluded with success.

It should be noted that the second quarter has started with a healthy level of apparent demand in the US, with distributors seeking to put down stocks so as to reduce the risk of shortages and disruption of the supply chain, as a result of the hike in customs tariffs. This upturn in apparent demand in the US has yet to produce a knock-on effect on apparent demand in Europe.

As is well known, the Iberian Peninsula suffered a general power cut on 28 April. Our operations were significantly affected, forcing the shutdown of almost all facilities. The net impact for Navigator was more than a day's loss of Pulp, Printing and Writing paper and Tissue production. Fortunately, through the collective efforts of our team, it was possible to maintain service levels for our customers. It should also be noted that there were no accidents, and the full safety of our employees was guaranteed.

FINANCIAL STATEMENTS

Condensed interim consolidated income statement

For the periods ended 31 March 2025 and 2024

Amounts in Euro	Note	31-03-2025	31-03-2024
Revenue	2.1	529,272,692	536,410,280
Other operating income	2.2	23,122,177	18,160,518
Fair value adjustments of biological assets	3.7	917,132	2,072,329
Costs of goods sold and materials consumed		(227,482,797)	(224,886,646)
Variation in production		(4,026,250)	(15,518,788)
External services and supplies	2.3	(140,818,740)	(115,015,197)
Payroll costs	7.1	(52,709,376)	(49,842,587)
Other operating expenses	2.3	(12,713,712)	(18,075,779)
Net provisions	9.1	(626,014)	-
Depreciation, amortisation and impairment losses in non-financial assets	3.6	(42,075,156)	(35,566,206)
Operating profit/(loss)		72,859,956	97,737,924
Financial income and gains	5.7	5,426,235	4,521,504
Financial expenses and losses	5.7	(12,520,342)	(13,333,461)
Financial profit/(loss)		(7,094,107)	(8,811,957)
Group share of (losses)/gains of associates and joint ventures		-	-
Profit before income tax		65,765,849	88,925,967
Income tax	6.1	(17,453,444)	(24,836,375)
Net profit for the period		48,312,405	64,089,592
Attributable to Navigator's equity holders		48,297,009	64,075,631
Attributable to non-controlling interests	5.3	15,396	13,961
Earnings per share
Basic earnings per share, Euro	5.2	0.068	0.090
Diluted earnings per share, Euro	5.2	0.068	0.090

1. Condensed interim consolidated statement of comprehensive income

For the periods ended 31 March 2025 and 2024

Amounts in Euro	Note	31-03-2025	31-03-2024
Net profit for the period
before non-controlling interests		48,312,405	64,089,592
Items that may be reclassified to the income statement
Derivative financial instruments - hedging
Changes in fair value	8.1	1,579,012	3,845,082
Tax on items above		(454,085)	(1,057,398)
Changes in the currency translation reserve		(1,842,746)	3,121,499
Items that may not be reclassified to the income statement
Remeasurement of post-employment benefits
Remeasurement		(2,256,705)	2,051,343
Tax on items above		-	-
Comprehensive income of associates and joint ventures		-	1,808,680
Total other comprehensive income net of taxes		(2,974,524)	9,769,206
Total comprehensive income		45,337,881	73,858,798
Attributable to:
Navigator's equity holders		45,322,485	73,844,837
Non-controlling interests		15,396	13,961
		45,337,881	73,858,798

2. Condensed interim consolidated statement of financial position

As at 31 March 2025 and 31 December 2024

ASSETS Non-current assets Goodwill 3.1 422,319,309 422,627,337 Intangible assets 3.2 146,908,894 119,600,687 Property, plant and equipment 1,413,408,336 1,415,945,085 3.3 Right-of-use assets 3.5 97,581,667 98,651,166 Biological assets 3.7 115,525,650 115,250,198 Investment properties 3.4 356,989 360,170 Other financial assets 7.2 1,347,318 - Non-current receivables 4.2 7,399,439 13,142,937 Deferred tax assets 6.2 55,663,105 59,110,851 2,259,163,389 2,246,035,749 Current assets Inventories 4.1 305,749,322 303,198,367 Current receivables 4.2 500,208,423 496,698,621 Income tax 6.1 20,621,461 20,621,461 Cash and cash equivalents 5.6 193,547,577 286,628,866 1,020,126,783 1,107,147,315 Total assets 3,279,290,172 3,353,183,064 EQUITY AND LIABILITIES Capital and Reserves Share capital 5.1 500,000,000 500,000,000 Currency translation reserve 11,986,661 13,829,407 Fair value reserve 13,136,381 12,011,454 Legal reserve 100,000,000 100,000,000 Other reserves (5,960,836) (5,960,836) Retained earnings 733,592,107 548,900,068 Net profit for the period 48,297,009 286,948,195 Prepaid dividends (99,999,451) - Equity attributable to Navigator's equity holders 1,401,051,322 1,355,728,837 Non-controlling interests 5.3 375,743 360,347 Total Equity 1,401,427,065 1,356,089,184 Non-current liabilities Interest-bearing liabilities 686,573,092 726,229,071 5.4 Lease liabilities 5.5 97,600,559 98,627,669 Pensions and other post-employment benefits 7.2 909,378 - Deferred tax liabilities 6.2 135,248,063 135,938,603 Provisions 9.1 28,991,128 28,371,069 Non-current payables 4.3 116,135,968 117,161,513 1,065,458,188 1,106,327,925 Current liabilities Interest-bearing liabilities 5.4 167,300,175 177,748,681 Lease liabilities 5.5 13,051,047 13,109,231 Current payables 4.3 578,119,121 658,569,674 53,934,576 41,338,369 Income tax 6.1 812,404,919 890,765,955 Total liabilities 1,877,863,107 1,997,093,880 Total Equity and Liabilities 3,279,290,172 3,353,183,064	Amounts in Euro	Note	31-03-2025	31-12-2024

Condensed interim consolidated statement of changes in equity

For the periods ended 31 March 2025 and 2024

Amounts in Euro	Share capital	Currency translation reserve	Fair value reserves	Legal reserves Other	reserves	Retained earnings	Net profit for the period	Prepaid dividends	Total	Non controlling interests	Total
Equity as at 1 January 2025	500,000,000	13,829,407		12,011,454 100,000,000		(5,960,836) 548,900,068		286,948,195 (99,999,451)	1,355,728,837		360,347 1,356,089,184
Net profit for the period	-	-	-	-	-	-	48,297,009	-	48,297,009	15,396	48,312,405
Other comprehensive income (net of taxes)	-	(1,842,746)	1,124,927	-	-	(2,256,705)	-	-	(2,974,524)	-	(2,974,524)
Total comprehensive income for the period	-	(1,842,746)	1,124,927	-	-	(2,256,705)	48,297,009	-	45,322,485	15,396	45,337,881
Appropriation of 2024 net profit for the period:
- Application of prior period's net profit	-	-	-	-	-	286,948,195	(286,948,195)	-	-	-	-
Prepaid dividends	-	-	-	-	-	(99,999,451)	-	99,999,451	-	-	-
Total transactions with shareholders	-	-	-	-			- 186,948,744 (286,948,195) 99,999,451		-	-	-
Equity as at 31 March 2025	500,000,000	11,986,661		13,136,381 100,000,000		(5,960,836) 733,592,107	48,297,009	-	1,401,051,322		375,743 1,401,427,065
Amounts in Euro	Share capital	Currency translation reserve	Fair value reserves	Legal reserves Other	reserves	Retained earnings	Net profit/(loss) for the period	Prepaid dividends	Total	Non controlling interests	Total
Equity as at 1 January 2024	500,000,000	5,309,023		12,898,767 100,000,000		3,481,014 418,633,191	274,923,820	-	1,315,245,815		327,018 1,315,572,833
Net profit for the period	-	-	-	-	-	-	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
Total comprehensive income for the period	-	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:

• Application of prior period's net profit - - - - - 274,923,820 (274,923,820) - - - - Total transactions with shareholders - - - - - 274,923,820 (274,923,820) - - - - Equity as at 31 March 2024 500,000,000 8,430,522 15,686,451 100,000,000 3,481,014 697,417,034 64,075,631 - 1,389,090,652 340,979 1,389,431,631

Condensed interim consolidated cash flow statement

For the periods ended 31 March 2025 and 2024

Amounts in Euro	Notes	31-03-2025	31-03-2024
OPERATING ACTIVITIES
Receipts from customers		542,760,289	507,182,947
Payments to suppliers		(421,141,314)	(397,357,360)
Payments to employees		(35,399,445)	(29,044,328)
Cash flow from operations		86,219,530	80,781,259
Income tax received/ (paid)	6.1	(724,270)	(735,527)
Other receipts / (payments) relating to operating activities		45,681,183	3,603,603
Cash flows from operating activities (1)		131,176,443	83,649,335
INVESTING ACTIVITIES
Inflows:
Property, plant and equipment		32,667	-
Interest and similar income		1,274,014	-
Outflows:		1,306,681	-
Property, plant and equipment		(68,060,343)	(35,079,928)
Cash flows from investing activities (2)		(68,060,343) (66,753,662)	(35,079,928) (35,079,928)
FINANCING ACTIVITIES
Inflows:
Interest-bearing liabilities	5.4	1,011,653	50,000,000
Government grants		3,636,633	5,174,886
		4,648,286	55,174,886
Outflows:
Interest-bearing liabilities	5.4	(51,816,788)	(75,857,143)
Amortisation of lease agreements	3.5	(4,618,353)	(3,778,496)
Interest and similar expense		(5,121,131)	(2,623,216)
Early dividend resolution		(99,999,451)	-
Other financing activities			(153,478)
		(161,555,723)	(82,412,333)
Cash flows from financing activities (3)		(156,907,437)	(27,237,447)
CHANGE IN CASH AND CASH EQUIVALENTS (1)+(2)+(3)		(92,484,656)	21,331,960
Effect of exchange rate differences		(596,633)	(870,545)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	5.6	286,628,866	169,464,967
	5.6
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		193,547,577	189,926,381

CONTENTS Condensed Interim Consolidated Financial Statements

1.	Introduction	24
1.1.	The Group	24
1.2.	Subsequent events	25
1.3.	Basis for preparation	25
1.4.	Significant accounting estimates and judgements	26
2.	Operational performance	27
2.1	Revenue and segment reporting	27
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	39
4.1.	Inventories	39
4.2.	Receivables	40
4.3.	Payables	43
5.	Capital structure	44
5.1.	Share Capital and treasury Shares	44
5.2.	Earnings per share	44
5.3.	Non-controlling interests	44
5.4.	Interest-bearing liabilities	45
5.5.	Lease liabilities	47
5.6.	Cash and cash equivalents	48
5.7.	Net financial results	49
6.	Income tax	50
6.1.	Income tax for the period	50
6.2.	Deferred taxes	52
7.	Payroll	53
7.1.	Payroll costs	53
7.2.	Employee benefits	54
8.	Financial instruments	56
8.1.	Derivative financial instruments	56

9.	Provisions, commitments and contingencies	57
9.1.	Provisions	57
9.2.	Commitments	58
10.	Group structure	59
10.1.	Companies included in the consolidation perimeter	59
10.2. Changes in the consolidation perimeter		60
10.3.	Transactions with related parties	60
11.	Explanation added for translation	61

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 E.P. was created as a result of the nationalisation process of the cellulose industry which, through the merger of CPC - Companhia de Celulose, S.A.R.L. (Cacia), Socel – Sociedade Industrial de Celulose, S.A.R.L. (Setúbal), Celtejo – Celulose do Tejo, S.A.R.L. (Vila Velha de Ródão), Celnorte – Celulose do Norte, S.A.R.L. (Viana do Castelo) and Celuloses do Guadiana, S.A.R.L. (Mourão) incorporated Portucel - Empresa de Celulose e Papel de Portugal, E.P., converted into a Public Limited Company of mainly public capital by Decree-Law 405/90, of 21 December.

Years after, as a result of the restructuring of Portucel – Empresa de Celulose e Papel de Portugal, S.A., which was renamed Portucel, SGPS, S.A., towards to its privatisation, Portucel S.A. was created, on 31 May 1993, through Decreelaw 39/93, of 13 February, with the former assets of the two main companies, based in Aveiro and Setúbal.

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

Aiming to restructure the paper industry in Portugal, Portucel acquired Papéis Inapa, S.A. (Setúbal), in 2000, and Soporcel – Sociedade Portuguesa de Papel, S.A. (Figueira da Foz), in 2001. Those key strategic decisions resulted in the Portucel Soporcel Group (currently Navigator Group), which is currently the largest European and one of the world's largest producers of bleached eucalyptus pulp and the largest European producer of uncoated wood-free paper (UWF), with a capacity of 1.6 and 1.6 million of tons, respectively. In 2024 it sold approximately 389 thousand tonnes of pulp (462 thousand tonnes in 2023), integrating the remainder into the production of UWF paper and tissue paper.

In June 2004, the Portuguese Government sold 30% of Portucel's capital, which was acquired by the 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. (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 around 70% following the conclusion of the offer for the acquisition, in the form of an exchange offer, of the ordinary shares of Semapa in July 2015. The voting rights currently, and since June 2024, amount to 70.03%.

In February 2015, the Group started its activity in the Tissue segment with the acquisition of AMS-BR Star Paper, S.A. (currently denominated Navigator Tissue Ródão, S.A.), a Company that holds and explores a tissue paper mill, located in Vila Velha de Ródão. A new industrial facility was built in Aveiro, in August 2018, being operated by Navigator Tissue Aveiro, S.A., which is currently the largest Portuguese producer and the third in the Iberian Peninsula, with a production and transformation capacity of 130 thousand tons and 120 thousand tons, respectively.

On 31 March 2023 the acquisition of the Gomà-Camps Group's consumer Tissue business in Spain was concluded, with a view to strengthening the Group's presence in this business segment. The integration of this new mill has elevated Navigator to the position of second largest Iberian tissue producer, with a production capacity of 165 thousand tons and converting capacity of 180 thousand tons.

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

The Group's main business is the production and sale of writing and printing thin paper (UWF) and domestic consumption paper (Tissue), and it is present in the entire value-added chain, from research and development of forestry and agricultural production to the purchase and sale of wood and the production and sale of bleached eucalyptus kraft pulp – BEKP – and electric and thermal energy, as well as its commercialisation.

The Navigator Company, S.A. 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

TIN: 503 025 798

Shares Issued: 711,183,069

1.2. Subsequent events

There were no events that resulted in additional adjustments or disclosures in the Group's consolidated financial statements in the three-month period ended 31 March 2025.

1.3. Basis for preparation

1.3.1. Authorisation to issue condensed interim consolidated financial statements

These condensed interim consolidated financial statements were approved by the Board of Directors and authorised for issue on 08 May 2025.

1.3.2. Basis for presentation

The condensed interim consolidated financial statements for the three-month period ended 31 March 2025 were prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting.

The following Notes were selected to contribute to the understanding of the most significant changes in the Group's consolidated financial position and its performance in relation to the last reporting date. In this context, these condensed interim consolidated financial statements should be read together with the Navigator Group's consolidated financial statements for the period ended 31 December 2024.

The accounting policies adopted are consistent with those of the previous period and the corresponding interim reporting period.

1.3.3. Basis for measurement

The accompanying condensed interim consolidated financial statements have been prepared on the going concern basis from the accounting books and records of the companies included in the consolidation (Note 10.1), and under the historical cost convention, except for biological assets (Note 3.7), and for financial instruments measured at fair value through profit or loss or at fair value through other comprehensive income, in which derivative financial instruments are included. The liability related to responsibilities for defined benefits is recognised at its present value deducted from the respective asset.

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

1.3.4. Comparability

These financial statements are comparable in all material respects with those of the previous year.

1.4. Significant accounting estimates and judgements

The preparation of consolidated financial statements requires that the Group's Board of Directors make judgements and estimates that affect the amount of revenue, costs, assets, liabilities and disclosures at the date of the consolidated statement of financial position. To that effect, the Group's Board of Directors are based on:

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

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

More significant estimates and judgements are presented below:

Estimates and judgements	Notes
Recoverability of Goodwill	3.1 – Goodwill
Fair value of brands, useful life and depreciation of other intangible assets	3.2 – Intangible assets
Recoverability, useful life and depreciation of property, plant and equipment	3.3 – Property, plant and equipment
Fair value of biological assets	3.8 – 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 2025 and 2024

							31-03-2025
	Market					*
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Support	Cancellations	Total
REVENUE
Sales and services - external	52,808,907	313,895,527	131,945,985	30,622,273	-	-	529,272,692
Sales and services – intersegment	1,100,901			14,513,877		(15,614,778)
Total revenue	53,909,808	- 313,895,527	- 131,945,985	45,136,150	- -	(15,614,778)	- 529,272,692
PROFIT/(LOSS)
Operating income (1)	2,280,683	62,019,824	17,234,101	716,209	(9,390,861)	-	72,859,956
Financial profit/(loss)	-	-	-	-	(7,094,107)	-	(7,094,107)
Income tax	-	-	-	-	(17,453,444)	-	(17,453,444)
Net profit for the period							48,312,405
Non-controlling interests	-	-	-	-	(15,396)	-	(15,396)
Profit/ (loss) attributable to equity holders	-	-	-	-	-	-	48,297,009
OTHER INFORMATION
Capital acquisitions	7,261,480	21,949,541	6,125,977	311,668	736,811	-	36,385,477
Depreciation (including impairments)	(4,778,976)	(24,051,960)	(8,426,575)	(4,578,470)	(239,175)	-	(42,075,156)
Provisions ((increases) / reversals)	-	(583,544)	22,007	-	(64,477)	-	(626,014)
OTHER INFORMATION
SEGMENT ASSETS
Goodwill	-	376,756,383	45,562,926	-	-	-	422,319,309
Property, plant and equipment	152,488,099	806,346,537	320,000,751	128,079,396	6,493,553	-	1,413,408,336
Right-of-use assets	14,237,394	52,586,508	29,297,196	-	1,460,569	-	97,581,667
Biological assets	28,881,412	86,644,238	-	-	-	-	115,525,650
Non-current receivables	50	5,264,517	1,624,558	-	510,314	-	7,399,439
Inventories	32,843,387	211,970,712	58,395,872	912,934	1,626,417	-	305,749,322
Trade receivables	21,941,938	178,351,729	107,672,663	1,400,903	8,679,827	-	318,047,060
Other current receivables	22,439,691	68,542,963	27,168,111	904,687	63,105,911	-	182,161,363
Other assets	11,135,931	93,405,818	99,362,855	6,016	213,187,406	-	417,098,026
Total Assets	283,967,902	1,879,869,405	689,084,932	131,303,936	295,063,997	-	3,279,290,172
SEGMENT LIABILITIES
Interest-bearing liabilities	-	415,573	47,935,335	-	805,522,359	-	853,873,267
Lease liabilities	15,706,213	57,327,400	36,059,839	-	1,558,154	-	110,651,606
Other current payables	46,079,599	269,808,518	64,034,866	1,083,877	197,112,261	-	578,119,121
Other liabilities	30,432,204	138,282,860	73,873,316	6,930,504	85,700,229	-	335,219,113
Total Liabilities	92,218,016	465,834,351	221,903,356	8,014,381	1,089,893,003	-	1,877,863,107
* Cancellation of Intersegment Operations. Consolidation adjustments related to inter-segmental transactions are considered not significant.

(1 ) Includes the effects of hedging derivatives of Euro 246,790 in the Pulp segment and of Euro 16,905 in the UWF Paper segment.

In the three-month period ended 31 March 2025, the Navigator Group recorded turnover in the amount of Euro 529,272,692, with paper sales accounting for approximately 59% of turnover (vs. 68%), pulp sales 10% (vs. 12%), tissue sales 25% (vs. 14%) and energy sales 6% (vs. 6%).

In the first two months of 2025, global apparent demand fell by 1.9%, after a year marked by a slight recovery. Printing and writing paper (Uncoated Woodfree - UWF) continues to be the most resilient grade, with a decrease of 1.9% compared to coated woodfree (CWF), which fell by 4.5%. Mechanical fibre papers (coated and uncoated) fell by 4%.

In Europe, apparent demand for UWF paper fell by 8% this quarter compared to the same period last year, as a result of the contraction in orders recorded in the last quarter of 2024.

In the United States, demand for UWF fell by 2% in the first quarter, as installed capacity fell by 11% year-on-year. Apparent UWF consumption in other world regions corrected by 0.9%, with China recording growth of 1.0% (YtD February).

It should be emphasised that the UWF has remained the most resilient segment over the years, given its versatility of use.

After a second half of 2024 marked by a sharp drop in prices in China (with greater expression in the third quarter) and Europe, the first quarter of 2025 recorded a recovery in prices, especially in Europe. The benchmark index for short fibre (hardwood) pulp - PIX BHKP in US dollars closed the first quarter at 1,160 USD/t, an increase of approximately 16%. The difference in prices between China and Europe began the year favourable to China, reversed over the course of the quarter and ending favourably to Europe.

In Europe, the pulp market was underpinned by stable demand from the Packaging and Tissue sectors. However, consumption fell by 2.2% compared to the same period in 2024. This performance is influenced by a high comparative base, as the start of 2024 was particularly strong.

In Europe, demand for Tissue paper had a more moderate start to the year in 2025, with a slight drop of 0.1% in January and February compared to the same period last year. This compares with 2024, a year of strong growth of 6.2%, a period in which the market was favoured by reinforced stock replenishment and increased household purchasing power.

During the first quarter, Navigator's Tissue sales volume (finished product and reels) totalled 61,000 tonnes, recording a 5% decline compared to the previous quarter, reflecting lower reel sales and the usual seasonal effect in this period, which affects finished products, and up 62% year-on-year. The value of sales showed a 3% decline quarter-on-quarter and a 76% increase year-on-year.

In the Packaging business line, the European market started 2025 with good dynamics in apparent demand. European deliveries of kraft paper for flexible packaging (white and brown) reported by CEPI grew by 13% compared to the same period last year.

In the first three months of the year, the sale of electricity amounted to Euro 30,622,273 compared to Euro 33,331,862 in the same period last year, which represents a reduction of approximately 8%. This reduction is essentially due to the lower sales volume of the Setúbal natural gas combined cycle power station, which operates on a self-consumption basis with the sale of surpluses at market prices, and the annual general shutdown of the Aveiro renewable cogeneration plant in February.

During this period, the Group's industrial units continued to provide the Frequency Restoration Reserve Band Market service, with manual activation (mFRR Band). This system service, provided to the electricity transmission network operator by the agents authorised for this purpose, aims to help safeguard the security of supply of the National Electricity System, which has already proved fundamental to protecting domestic consumers and critical users.

In the first quarter of 2025, the volume of investments amounted to Euro 36,385,477 million (vs. Euro 40,676,380) in the same period of the previous year), of which around Euro 21,571,311 million relates to investments in value-creating environmental or sustainable matters, approximately 60% of total investment. The amount of investment includes mainly investments in decarbonisation, maintenance of production capacity, upgrading of equipment and improvement of efficiency, structural and safety projects.

Investments include the new high-efficiency recovery boiler in Setúbal (which is currently being tested), the new cogeneration unit at the Tissue unit in Aveiro, the oxygen delignification line in Setúbal, the conversion of the Setúbal lime kiln to burn biomass, the conversion of the burning processes to hydrogen in Aveiro, the collection and incineration of odorous gases (NCGs) in Setúbal and the new biomass lime kiln in Figueira da Foz.

Navigator continues to move forward with projects under the Recovery and Resilience Plan (RRP), particularly projects aimed at the Climate Transition and Digital Transition. For eligible investments under the PRR, an incentive rate of about 40% is expected, which corresponds to close to Euro 100 million compared to the approved projects, of which the Company has already received approximately Euro 49.2 million, including Euro 3.5 million in the first quarter of 2025.

							31-03-2024
	Market					*
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Support	Cancellations	Total
REVENUE
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)	-
Total revenue	65,410,074	363,304,799	75,055,578	44,546,846	-	(11,907,017)	536,410,280
PROFIT/(LOSS)
Operating income (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)
Net profit for the period	-	-	-	-		-	64,089,592
Non-controlling interests					(13,961)		(13,961)
Profit/ (loss) attributable to equity holders	- -	- -	- -	- -	-	- -	64,075,631
OTHER INFORMATION
Capital acquisitions	8,438,122	27,974,408	2,869,012	551,432	843,406	-	40,676,380
Depreciation (including impairments)	(4,260,579)	(20,215,876)	(4,865,053)	(4,564,017)	(1,660,681)	-	(35,566,206)
OTHER INFORMATION
SEGMENT ASSETS
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
Inventories	6,641,644	26,606,437	11,360,032	-	6,236,659	-	50,844,772
Trade receivables	31,860,180 40,105,265	207,097,300 166,670,857	32,198,779 76,102,929	821,121 3,161,683	988,625 11,582,987	-	272,966,005 297,623,721
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
Total Assets	304,582,441	1,947,642,165	369,841,179	- 142,496,314	161,562,474	-	2,926,124,573
						-
SEGMENT LIABILITIES
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 current 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
Total 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.

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

						31-03-2025
Amounts in Euro					Total	Total
	Pulp	UWF Paper	Tissue Paper	Energy	Amount	%
Portugal	1,692,666	18,029,233	23,173,943	30,622,113	73,517,955	13.89%
Rest of Europe	32,038,673	175,486,112	107,287,104	160	314,812,049	59.48%
America*	75,319	47,260,358	465,932	-	47,801,609	9.03%
Africa and Middle East	10,721,385	36,053,663	1,019,006	-	47,794,054	9.03%
Asia	8,280,864	37,012,911	-	-	45,293,775	8.56%
Oceania	-	53,250	-	-	53,250	0.01%
	52,808,907	313,895,527	131,945,985	30,622,273	529,272,692	100.00%
Recognition pattern
At a certain moment in time	52,808,907	313,895,527	131,945,985	30,622,273	529,272,692	100.00%
Over time	-	-	-	-	-	0.00%

* Includes North America and Latin America

31/03/2024

					Total	Total
Amounts in Euro	Pulp	UWF Paper	Tissue Paper	Energy	Amount	%
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%
America*	532,283	36,617,916	410,856	-	37,561,055	7.00%
Africa and Middle East	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%

* Includes North America and Latin America

Group's revenue distribution by geographic area

In 2025 and 2024, 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 2025 and 2024, Other operating income is detailed as follows:

Amounts in Euro	31-03-2025	31-03-2024
Gains on disposal of non-current assets	54,430	22,367
Grants - CO₂ emission allowances	14,638,460	8,877,227
Supplementary gains	301,745	256,107
Operating grants	991,446	733,382
Impairment reversal on receivables	664,560	1,228,954
Reversal of impairment losses on inventories (Note 4.1.2)	1,271,507	3,036,440
Gains on inventories	323,965	201,348
Own work capitalised	721,967	492,741
Compensations	208,103	21,680
Other operating income	3,945,994	3,290,272
	23,122,177	18,160,518

Gains on CO2 emission allowances correspond to the recognition of free allocation of allowances for 198,515 tonnes of CO2, at the average price of Euro 73.74 (120,239 tonnes of CO2, at the average price of Euro 73.83 as at 31 March 2024).

Operating grants include Euro 855,981 (Euro 700,113 in 2024) relating to grants awarded under the Recovery and Resilience Plan (PRR). This caption also includes grants awarded for research and development projects carried out by the RAIZ institute.

Reversal of impairment losses on inventories essentially refers to the reversal of impairment on waste and damaged stocks, due to sales made during the period.

Other operating income includes Euro 2,911,415 (Euro 2,837,117 in 2024) relating to the sale of UWF paper and Tissue waste.

2.3 Other operating expenses

Amounts in Euro	31-03-2025	31-03-2024
Costs of goods sold and materials consumed	227,482,797	224,886,646
External services and supplies
Energy and fluids	51,539,014	34,112,153
Transportation of goods	38,928,025	34,811,767
Specialised work	24,155,630	21,729,114
Maintenance and repair	9,851,448	8,969,085
Rentals	2,148,291	2,027,713
Advertising and marketing	3,390,080	3,295,215
Insurance	2,923,618	2,744,680
Travel and accommodation	1,369,710	1,188,907
Materials	1,260,604	637,794
Fees	974,320	425,590
Subcontracts	409,038	100,164
Communications	259,568	221,209
Other	3,609,394	4,751,806
	140,818,740	115,015,197
Variation in production	4,026,250	15,518,788
Payroll costs (Note 7.1)	52,709,376	49,842,587
Other operating expenses
Costs with CO2 emission allowances	8,142,260	9,625,493
Impairment losses on inventories (Note 4.1.2)	1,636,092	2,962,009
Indirect taxes	1,088,045	635,926
Water resource fee	564,241	461,714
Other inventory losses	322,744	2,639,809
Impairment losses on receivables	148,958	965,765
Gains on disposal of non-current assets	-	3,671
Other operating expenses	811,372	781,392
	12,713,712	18,075,779
Net provisions (Note 9.1)	626,014	-
Total operating expenses	437,750,875	423,338,997

During the three-month period ended 31 March 2025, there was an increase in energy and fluid costs, mainly due to the increase in the purchase price of electricity (+73%) and natural gas (+43%) compared to the same period of the previous year.

The expenses with CO² correspond to the emission of 84,014 tonnes of CO² (31 March 2024: 132,407 tonnes).

In the period, Impairment losses on inventories essentially include the recognition of Euro 677,638 relating to impairment losses on UWF and tissue paper waste (2024: Euro 1,724,970) and Euro 470,587 for the stock of damaged paper identified on the Navigator North America Inc. platform. In the same period of the previous year, Impairment losses on inventories also included the amount of Euro 1,248,818 relating to impairment losses on slow movers.

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	31-03-2025	31-12-2024
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
CGU for the production and commercialisation of Tissue paper in the United Kingdom (initial goodwill resulting from the acquisition of the Accrol Holdings Plc Group)	40,823,301	41,131,329
	422,319,309	422,627,337

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

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

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

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.

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

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

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

Navigator Tissue UK

On 24 May 2024, the Navigator Group concluded a public takeover bid, in the form of a Recommended Firm Cash Offer, for the entire share capital of Accrol Group Holdings Plc (Accrol), currently Navigator Tissue Uk Group, a company based in Blackburn, England, which holds 9 subsidiaries, 5 of which operational. Accrol Group is a leader in the tissue paper converting segment in the United Kingdom, producing private label toilet rolls, kitchen rolls and facial tissues for most of the main retailers in the UK.

As part of this acquisition, the consideration transferred amounted to Euro 153,765,152 (GBP 130,823,390) and an initial goodwill of Euro 114,920,802 (GBP 97,774,618) was calculated, from which was deducted the fair value attributed to property, plant and equipment and intangible assets of Euro 25,734,059 and Euro 74,045,509, respectively, as well as the associated deferred tax liabilities. The final goodwill amounted to Euro 40,086,125 (GBP 34,105,275), which on 31 March corresponded to an amount of Euro 40,823,301 as a result of the exchange rate update at the rate of 0.83544.

3.2. Intangible assets

Movements in intangible assets

Amounts in Euro	Industrial property and other rights	CO2 emission allowances	Other intangible assets	Intangible assets in progress	Total
Gross amount
Balance as at 1 January 2024	2,719,219	41,502,209	3,346,282	-	47,567,710
Allocations	-	35,508,908	-	-	35,508,908
Balance as at 31 March 2024	2,719,219	77,011,117	3,346,282	-	83,076,618
Change in the perimeter	28,471,792	-	53,596,615	509,174	82,577,581
Acquisitions	-	-	-	391,306	391,306
Adjustments, transfers and write-offs	(39,267)	(38,532,530)	-	-	(38,571,797)
Exchange rate adjustment	741,770	-	1,397,476	18,234	2,157,480
Balance as at 31 December 2024	31,893,514	38,478,587	58,340,373	918,714	129,631,188
Allocations	-	29,276,918	-	-	29,276,918
Acquisitions	-	-	-	15,506	15,506
Adjustments, transfers and write-offs	843,655	-	-	(843,655)	-
Exchange rate adjustment	(215,192)	-	(406,847)	(6,933)	(628,972)
Balance as at 31 March 2025	32,521,977	67,755,505	57,933,526	83,632	158,294,640
Accumulated amortisation and impairment losses Balance as at 1 January 2024	(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)
Balance as at 31 March 2024	(409,629)	(537,379)	(1,341,517)	-	(2,288,525)
Change in the perimeter	(4,315,193)	-	-	-	(4,315,193)
Depreciation and amortisation for the period (Note 3.6)	(1,162,011)	-	(2,500,420)	-	(3,662,431)
Impairment losses for the period (Note 3.5)	-	391,705	-	-	391,705
Adjustments, transfers and write-offs	13,089	-	-	-	13,089
Exchange rate adjustment	(138,373)	-	(30,773)	-	(169,146)
Balance as at 31 December 2024	(6,012,117)	(145,674)	(3,872,710)	-	(10,030,501)
Depreciation and amortisation for the period (Note 3.6)	(362,521)	-	(807,580)	-	(1,170,101)
Impairment losses for the period (Note 3.5)	-	(242,460)	-	-	(242,460)
Exchange rate adjustment	42,823	-	14,493	-	57,316
Balance as at 31 March 2025	(6,331,815)	(388,134)	(4,665,797)	-	(11,385,746)
Net book value as at 1 January 2024	2,691,266	41,502,209	2,004,765	-	46,198,240
Net book value as at 31 March 2024	2,309,590	76,473,738	2,004,765	-	80,788,093
Net book value as at 31 December 2024	25,881,397	38,332,913	54,467,663	918,714	119,600,687
Net book value as at 31 March 2025	26,190,162	67,367,371	53,267,729	83,632	146,908,894

CO² allowances

	31-03-2025	31-12-2024
CO2 emission allowances (units)	913,402	516,373
Average unit value (Euro)	74.18	74.52
Market quotation (Euro)	71.57	71.57

The increase in the number of allowances compared to the previous year is due to the recognition of the CO² emission allowances allocated for the year 2025 and the fact that the previous year's allowances were not delivered.

CO² allowances – movements of the period

		31-03-2025		31-12-2024
Amounts in Euro	Tonnes	Amount	Tonnes	Amount
Opening balance	516,373	38,478,587	494,850	41,502,209
CO₂ allowances awarded free of charge	397,029	29,276,918	480,955	35,508,908
CO2 allowances returned to the Licensing Coordinating Entity	-	-	(459,432)	(38,532,530)
Closing balance	913,402	67,755,505	516,373	38,478,587

3.3. Property, plant and equipment

Movements in property, plant and equipment

		Buildings and	Equipment and
		other	other tangible	Assets under
Amounts in Euro	Land	constructions	assets	construction	Total
Gross amount
Balance as at 1 January 2024	121,593,704	577,228,593	3,922,674,887	160,754,394	4,782,251,578
Acquisitions	-	-	1,237,554	39,438,826	40,676,380
Adjustments, transfers and write-offs	135,602	1,644,485	10,993,886	(12,777,628)	(3,655)
Balance as at 31 March 2024	121,729,306	578,873,078	3,934,906,327	187,415,592	4,822,924,303
Change in the perimeter	-	2,875,637	96,215,441	3,122,596	102,213,674
Acquisitions	-	-	19,207,046	180,353,788	199,560,834
Disposals	(24,289)	-	(152,538)	(15,309)	(192,136)
Adjustments, transfers and write-offs	4,331,132	4,070,549	153,226,066	(166,950,012)	(5,322,265)
Exchange rate adjustment	-	74,979	2,517,537	92,269	2,684,785
Balance as at 31 December 2024	126,036,149	585,894,243	4,205,919,879	204,018,924	5,121,869,195
Acquisitions	-	-	872,189	35,497,782	36,369,971
Disposals	(4,039)	-	-	-	(4,039)
Adjustments, transfers and write-offs	320,049	650,959	23,959,175	(24,978,039)	(47,856)
Exchange rate adjustment		(21,829)	(732,621)	(30,663)	(785,113)
Balance as at 31 March 2025	126,352,159	586,523,373	4,230,018,622	214,508,004	5,157,402,158
Accumulated depreciation and impairment losses
Balance as at 1 January 2024	-	(399,078,078)	(3,149,949,708)	-	(3,549,027,786)
Depreciation for the period (Note 3.6)	-	(3,708,065)	(29,653,438)		(33,361,503)
Adjustments, transfers and write-offs	-	(114,788)	114,788	-	-
Balance as at 31 March 2024	-	(402,900,931)	(3,179,488,358)	-	(3,582,389,289)
Change in the perimeter	-	-	(7,088,063)	-	(7,088,063)
Depreciation for the period (Note 3.6)	-	(10,421,981)	(103,751,878)	-	(114,173,859)
Impairments (Note 3.6)		-	(7,364,638)	(308,965)	(7,673,603)
Disposals	-	-	27,662	-	27,662
Adjustments, transfers and write-offs	-	1,495,087	4,138,988	-	5,634,075
Exchange rate adjustment	-	(937)	(260,096)		(261,033)
Balance as at 31 December 2024	-	(411,828,762)	(3,293,786,383)	(308,965)	(3,705,924,110)
Depreciation for the period (Note 3.6)	-	(3,357,669)	(35,677,930)	-	(39,035,599)
Impairments (Note 3.6)		-	845,850	-	845,850
Disposals	-	-	-	-	-
Adjustments, transfers and write-offs	-	(114,965)	145,680	-	30,715
Exchange rate adjustment	-	441	88,881		89,322
Balance as at 31 March 2025	-	(415,300,955)	(3,328,383,902)	(308,965)	(3,743,993,822)
Net book value as at 1 January 2024	121,593,704	178,150,515	772,725,179	160,754,394	1,233,223,792
Net book value as at 31 March 2024	121,729,306	175,972,147	755,417,969	187,415,592	1,240,535,014
Net book value as at 31 December 2024	126,036,149	174,065,481	912,133,496	203,709,959	1,415,945,085
Net book value as at 31 March 2025	126,352,159	171,222,418	901,634,720	214,199,039	1,413,408,336

As at 31 March 2025, Assets under construction include investments related to ongoing development projects, in particular the new recovery boiler in Setúbal (Euro 104,558,839), the collection and incineration of NCGs (Non-Condensable Gases) (Euro 11,958,302), Oxygen delignification (Euro 5,692,744), the conversion of Lime Kilns in Setúbal (Euro 2,195,766), the new bleaching tower in Aveiro (Euro 3,056,490), the new cogeneration unit for Aveiro's Tissue (Euro 10,136,514), adaptation of the burning process to hydrogen in Aveiro (Euro 2,291,954), the conversion of the Lime Kiln in Aveiro (Euro 2,673,479), the new biomass boiler in Vila Velha de Rodão (Euro 3,190,636), the new cogeneration plant (Euro 6,126,912), adaptation of the burning process to hydrogen (Euro 3,198,176), and the new biomass lime kiln furnace (Euro 11,964,153) in Figueira da Foz. The remainder is related to several projects for improving and optimising the production process.

Of the total investment of Euro 36,369,971, approximately 60% relates to investments classified as ESG and Euro 10,773,348 relates to investments under the Recovery and Resilience Plan (PRR).

Land includes Euro 117,141,734 (31 December 2024: Euro 116,934,845) classified in the individual financial statements as investment properties, from which Euro 80,196,705 (31 December 2024: Euro 79,989,817) relate to forestry land and Euro 36,945,028 (31 December 2024: Euro 36,945,028) to land allocated to industrial sites.

In 2024, the Group decided to proceed with the pre-engineering project for the rebuild of the PM3 machine in Setúbal, with the aim of converting the current production of high-grammage products into the production of more high-quality

and efficient low-grammage products (LBW – Low Basis Weight), the market segment with the greatest potential for growth in replacing plastic. Accordingly, an impairment loss of Euro 7,116,061 was recognised on the entire net book value of PM3 as at 31 December 2024.

3.4. Investment properties

Movement in investment properties

Amounts in Euro		Buildings and other
	Land	constructions	Total
Gross amount
Balance as at 1 January 2024	567,032	612,991	1,180,023
Acquisitions	-	-	-
Disposals	-	-	-
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 March 2024	567,032	612,991	1,180,023
Acquisitions	-	-	-
Disposals	(25,371)	(82,308)	(107,679)
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 December 2024	541,661	530,683	1,072,344
Acquisitions	-	-	-
Disposals	-	-	-
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 March 2025	541,661	530,683	1,072,344
Accumulated depreciation and impairment losses
Balance as at 1 January 2024	(399,372)	(317,247)	(716,619)
Impairment losses (Note 3.6)	-	(4,504)	(4,504)
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 March 2024	(399,372)	(321,751)	(721,123)
Disposals	-	19,480	19,480
Impairment losses (Note 3.6)	-	(10,531)	(10,531)
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 December 2024	(399,372)	(312,802)	(712,174)
Impairment losses (Note 3.6)	-	(3,181)	(3,181)
Adjustments, transfers and write-offs	-	-	-
Balance as at 31 March 2025	(399,372)	(315,983)	(715,355)
Net book value as at 1 January 2024	167,660	295,744	463,404
Net book value as at 31 March 2024	167,660	291,240	458,900
Net book value as at 31 December 2024	142,289	217,881	360,170
Net book value as at 31 March 2025	142,289	214,700	356,989

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

3.5. Right-of-use assets

Movements in right-of-use assets

				Software	Other lease
Amounts in Euro	Forestry lands	Buildings	Vehicles	licenses	assets	Total
Gross amount
Balance as at 1 January 2024	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
Balance as at 31 March 2024	71,837,483	4,352,402	13,579,243	1,214,094	11,184,460	102,167,682
Change in the perimeter	-	930,133	276,256	175,801	42,512,894	43,895,084
Acquisitions	3,739,059	117,679	2,633,150	35,253	5,340,453	11,865,594
Adjustments, transfers and write-offs	(1,344,968)	(7,922)	(1,365,244)	(49,559)	(3,902,749)	(6,670,442)
Exchange rate adjustment		24,252	7,613	3,823	1,092,764	1,128,452
Balance as at 31 December 2024	74,231,574	5,416,544	15,131,018	1,379,412	56,227,822	152,386,370
Acquisitions	2,149,515	-	412,152	-	-	2,561,667
Adjustments, transfers and write-offs	-	-	(405,851)	(129,005)	(316,294)	(851,150)
Exchange rate adjustment	-	(7,061)	(2,331)	(1,060)	(315,257)	(325,709)
Balance as at 31 March 2025	76,381,089	5,409,483	15,134,988	1,249,347	55,596,271	153,771,178
Accumulated depreciation and impairment losses
Balance as at 1 January 2024	(16,783,193)	(2,564,716)	(6,573,251)	(1,121,493)	(6,546,437)	(33,589,090)
Depreciation (Note 3.6)	(1,039,655)	(130,806)	(569,616)	(34,438)	(436,119)	(2,210,634)
Balance as at 31 March 2024	(17,822,848)	(2,695,522)	(7,142,867)	(1,155,931)	(6,982,556)	(35,799,724)
Change in the perimeter		(681,574)	(72,706)	(142,632)	(11,119,701)	(12,016,613)
Depreciation (Note 3.6)	(3,180,243)	(564,482)	(1,948,333)	(119,817)	(5,146,496)	(10,959,371)
Adjustments, transfers and write-offs	1,344,968	7,922	1,252,660	49,559	2,715,166	5,370,275
Exchange rate adjustment	-	(20,060)	(2,765)	(3,364)	(303,582)	(329,771)
Balance as at 31 December 2024	(19,658,123)	(3,953,716)	(7,914,011)	(1,372,185)	(20,837,169)	(53,735,204)
Depreciation (Note 3.6)	(1,119,699)	(150,414)	(642,466)	(7,167)	(1,546,483)	(3,466,229)
Adjustments, transfers and write-offs	-	-	370,388	129,005	413,672	913,065
Exchange rate adjustment	-	6,287	980	1,000	90,590	98,857
Balance as at 31 March 2025	(20,777,822)	(4,097,843)	(8,185,109)	(1,249,347)	(21,879,390)	(56,189,511)
Net book value as at 1 January 2024	53,162,982	1,787,686	5,363,163	92,601	4,638,023	65,044,454
Net book value as at 31 March 2024	54,014,635	1,656,880	6,436,376	58,163	4,201,904	66,367,958
Net book value as at 31 December 2024	54,573,451	1,462,828	7,217,007	7,227	35,390,653	98,651,166
Net book value as at 31 March 2025	55,603,267	1,311,640	6,949,879	-	33,716,881	97,581,667

The caption Forestry Lands relates essentially to the land use rights of existing forest exploration, whose agreements usually have a duration of 24 years and may be cancelled in advance if the 2nd harvest takes place before the 24th year of the agreement term.

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

Other lease assets include the Navigator Tissue Uk Group's rental contracts for forklifts, warehouses and converting equipment.

Cash flows associated with lease payments correspond to the financial amortisation of Euro 3,505,090 and interest of Euro 1,113,263 (Note 5.7), amounting to Euro 4,618,353, as shown in the Statement of Cash Flows.

3.6. Depreciation, amortisation and impairment losses

Amounts in Euro	31-03-2025	31-03-2024
Depreciation of property, plant and equipment for the period (Note 3.3)	39,035,599	33,361,503
Use of government grants	(996,564)	(929,490)
Depreciation of property, plant and equipment, net of grants used	38,039,035	32,432,013
Impairment of property, plant and equipment - losses (Note 3.3)	(845,850)	-
Impairment of property, plant and equipment for the period	(845,850)	-
Amortisation of intangible assets for the period (Note 3.2)	1,170,101	381,676
Impairment on intangible assets – losses	242,460	537,379
Impairment of intangible assets for the period (Note 3.2)	242,460	537,379
Depreciation of right-of-use assets for the period (Note 3.5)	3,466,229	2,210,634
Impairment of investment properties (Note 3.4)	3,181	4,504
	42,075,156	35,566,206

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

3.7. Biological assets

Movements in biological assets

Amounts in Euro	31-03-2025	31-12-2024
Opening balance	115,250,198	115,591,979
Logging	(5,558,380)	(4,116,177)
Growth	6,073,640	6,104,338
New planted areas and replanting	759,640	861,365
Other changes in fair value
- changes in other species	(239,538)	(36,402)
- other changes in expectations	(118,230)	(740,795)
Total changes	917,132	2,072,329
Amount as at 31 December	116,167,330	117,664,308
Remaining quarters	-	(3,088,581)
Exchange rate adjustment	(641,680)	674,471
Amount as at 31 December	115,525,650	115,250,198

In accordance with IAS 41, the Navigator Group considers mature assets to be those that have reached the specifications necessary to obtain the maximum yield based on their profitability, supply needs and opportunity cost. Typically, forests in Portugal reach maturity between 8 and 12 years, although this benchmark depends on the species, soil conditions, as well as edaphoclimatic conditions. Data on the forest, its condition and its future potential are measured at least twice throughout its growth cycle. As at 31 March 2025, mature assets accounted for approximately 52% (52% as at 31 December 2024) of Navigator's forests in Portugal, being recognised at fair value.

The discount rate used in the three-month period ended 31 March 2025 was 4.27% (2024: 4.27 %) for Portugal and Spain and 21.6% (2024:21.6%) in determining the fair value of Mozambique. 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 6.51% and 22.2%, respectively.

As at 31 March 2025 and 31 December 2024, biological assets, by species, is detailed as follows:

Amounts in Euro	31-03-2025	31-12-2024
Eucalyptus (Portugal)	86,084,406	85,569,146
Eucalyptus (Spain)	3,196,493	3,081,361
Pine (Portugal)	5,558,606	5,798,144
Cork oak (Portugal)	1,490,017	1,490,017
Other species (Portugal)	73,107	73,107
Eucalyptus (Mozambique)	19,123,021	19,238,423
	115,525,650	115,250,198

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

	31-03-2025	31-12-2024
Eucalyptus (Portugal) – Potential future of wood extractions k m3ssc	9,909	9,909
Eucalyptus (Spain) - Potential future of wood extractions k m3ssc	244	244
Pine (Portugal) – Potential future of wood extractions k ton	282	282
Cork oak (Portugal) – Potential future of cork extractions k @	458	458
Eucalyptus (Mozambique) – Potential future of wood extractions k m3ssc	5,165	5,165

Concerning Eucalyptus, the most relevant biological asset in the financial statements, the Group extracted, as at 31 March 2025, 132,413 m3ssc of wood from its owned and explored forests (31 December 2024: 611,862 m3ssc).

As at 31 March 2025 and 31 December 2024, (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

			31-03-2025			31-12-2024
Amounts in Euro	Gross amount	Impairment	net realisable value	Gross amount	Impairment	net realisable value
Raw materials	176,292,663	(8,923,812)	167,368,851	166,750,856	(8,473,131)	158,277,725
Goods	122,330	(5,133)	117,197	117,304	(25,591)	91,713
Subtotal	176,414,993	(8,928,945)	167,486,048	166,868,160	(8,498,722)	158,369,438
Finished and intermediate products	141,450,435	(6,632,905)	134,817,530	147,341,926	(5,882,791)	141,459,135
Goods and work in progress	2,962,300	(360,115)	2,602,185	3,410,862	(296,503)	3,114,359
By-products and waste	6,001,147	(5,157,588)	843,559	5,507,278	(5,251,843)	255,435
Subtotal	150,413,882	(12,150,608)	138,263,274	156,260,066	(11,431,137)	144,828,929
Total	326,828,875	(21,079,553)	305,749,322	323,128,226	(19,929,859)	303,198,367

4.1.2. Movements in impairment losses in inventories

Amounts in Euro	31-03-2025	31-12-2024
Opening balance	(19,929,859)	(20,581,954)
Increases (Note 2.3)	(1,636,092)	(3,165,457)
Reversals (Note 2.2)	1,271,507	5,068,999
Impact in profit or loss for the period	(364,585)	1,903,542
Perimeter inputs	-	(1,192,426)
Exchange rate effect	11,429	(35,719)
Charge-off	(796,538)	(23,302)
Closing balance	(21,079,553)	(19,929,859)

4.2. Receivables

			31-03-2025			31-12-2024
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Trade receivables	-	318,047,060	318,047,060	-	305,042,497	305,042,497
State	-	38,763,785	38,763,785	-	57,969,739	57,969,739
Grants receivable	4,369,715	59,374,522	63,744,237	10,684,900	56,582,606	67,267,506
Department of Commerce (USA)	1,285,853	-	1,285,853	718,183	-	718,183
Accrued income	-	12,825,726	12,825,726	-	17,223,776	17,223,776
Deferred expenses	-	26,711,279	26,711,279	-	19,981,490	19,981,490
Derivative financial instruments (Note 8.1.1)	-	22,074,349	22,074,349	-	21,022,301	21,022,301
Other	1,743,871	22,411,702	24,155,573	1,739,854	18,876,212	20,616,066
	7,399,439	500,208,423	507,607,862	13,142,937	496,698,621	509,841,559

State

State is detailed as follows:

Amounts in Euro	31-03-2025	31-12-2024
Value Added Tax – recoverable	10,918,318	10,943,833
Value Added Tax – repayment requests	27,845,467	47,025,906
	38,763,785	57,969,739

As at 31 March 2025, the amount of repayment requests comprised the following, by month and by company:

Amounts in Euro	Feb/2025	Mar/2025	Total
The Navigator Company, S.A.	-	24,945,467	24,945,467
Eucaliptusland, S.A.	300,000	-	300,000
Navigator Forest Portugal, S.A.	-	1,100,000	1,100,000
Navigator Abastecimento de Madeira, A.C.E.	1,500,000	-	1,500,000
	1,800,000	26,045,467	27,845,467

Up to the date of issuing this report, Euro 26,745,467 of the outstanding amounts as at 31 March 2025, had already been received.

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

Amounts in Euro	Nov/2024	Dec/2024	Total
The Navigator Company, S.A.	25,926,796	14,349,110	40,275,906
Navigator Tissue S.A.	-	1,940,000	1,940,000
Navigator Abastecimento de Madeira, A.C.E.	440,000	-	440,000
Navigator Paper Setúbal, S.A.	-	1,700,000	1,700,000
Navigator Pulp Setúbal, S.A.	-	1,970,000	1,970,000
Navigator Paper Figueira S.A.	-	700,000	700,000
	26,366,796	20,659,110	47,025,906

All these amounts were received during the first quarter of 2025.

Grants receivable

Grants receivable are detailed as follows:

			31-03-2025			31-12-2024
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
AICEP Contracts	-	2,407,395	2,407,395	-	2,407,395	2,407,395
Recovery and Resilience Plan	221,956	56,048,442	56,270,398	6,738,024	53,054,466	59,792,490
Other	4,147,759	918,685	5,066,444	3,946,876	1,120,745	5,067,621
	4,369,715	59,374,522	63,744,237	10,684,900	56,582,606	67,267,506

Department of Commerce (US)

As at 31 March 2025, 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 2023, the Department of Commerce confirmed the final rate to be applied for the 6th review period from March 2021 to February 2022 at 7.11%, therefore the Group received in 2024 the amount of Euro 1,674,082 for the difference between the deposits made and the final rate payable.

In 2024, the rate for the 7th review period, from March 2022 to February 2023, was also confirmed at 1.07%, and the amount of Euro 2,095,637 was also received. The subsequent review periods (8 and 9) remain open, and Navigator estimates an amount of approximately Euro 1,164,052 (Note 4.3) payable to the DoC for the 8th review period and a receivable of Euro 1,285,853 for the 9th review period.

Accrued Income and Deferred Expenses

Accrued income and deferred expenses are detailed as follows:

Amounts in Euro	31-03-2025	31-12-2024
Accrued income
Interest receivable	474,599	-
Energy sales	9,846,871	11,535,948
Insurance compensation	429,763	-
Other	2,074,493	5,687,828
	12,825,726	17,223,776
Deferred expenses
Insurance	3,246,801	2,735
Rentals	15,346,021	14,295,170
Other	8,118,457	5,683,585
	26,711,279	19,981,490
	39,537,005	37,205,266

Other receivables

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

Other non-current receivables

Amounts in Euro	31-03-2025	31-12-2024
Collateral	49,513	49,513
Other shareholdings (Almascience, Forestwise, Cecolab, Colab BIOREF)	69,600	69,800
Receivables - leasing	1,576,258	1,572,232
Other debtors	48,500	48,309
	1,743,871	1,739,854

Other current receivables

Amounts in Euro	31-03-2025	31-12-2024
Advances to personnel	70,938	86,822
Advances to suppliers	18,726,082	14,653,095
Other debtors	3,614,682	4,136,295
	22,411,702	18,876,212

4.3. Payables

Amounts in Euro	31-03-2025	31-12-2024
Trade payables – current account	224,939,070	215,175,131
Suppliers invoices pending - Logistics	17,503,944	17,471,405
Suppliers invoices pending - Other	85,267,977	86,751,313
Trade payables – Property, plant and equipment – current account	24,456,587	52,669,840
State	43,807,703	25,877,177
Related parties (Note 10.3)	315,978	1,496,697
Other creditors - CO₂ emission allowances	42,749,758	34,607,846
Shareholders	-	99,999,451
Other payables	18,540,922	21,613,139
Derivative financial instruments (Note 8.1.1)	3,414,097	6,311,500
Accrued expenses – payroll costs	46,417,411	40,827,184
Accrued expenses – interest payable	7,101,064	4,733,532
Wood supplier bonus	1,609,691	2,575,541
Water resource fee	2,295,866	1,858,098
Rent liabilities	20,133,074	20,040,608
Other accrued expenses	15,166,650	15,995,099
Non-repayable grants	24,399,329	10,566,113
Payables – current	578,119,121	658,569,674
Non-repayable grants	114,971,916	116,001,306
Department of Commerce (USA) (Note 4.2)	1,164,052	1,160,207
Payables – non-current	116,135,968	117,161,513
	694,255,089	775,731,187

State - Details

Amounts in Euro	31-03-2025	31-12-2024
Personal income tax withhold (IRS)	2,778,539	3,630,991
Value added tax	37,159,413	18,939,864
Social Security contributions	3,557,992	3,051,986
Other	311,759	254,336
	43,807,703	25,877,177

As at 31 March 2025 and 31 December 2024, there were no overdue debts to the State.

Non-repayable grants - details

Amounts in Euro	31-03-2025	31-12-2024
Government grants (Note 3.5)	3,975,453	3,942,627
Grants – CO2 emission allowances (Note 3.2)	14,637,538	-
Other grants	5,786,338	6,623,486
Non-repayable grants - current	24,399,329	10,566,113
Government grants (Note 3.5)	114,971,916	116,001,306
Non-repayable grants – non-current	114,971,916	116,001,306
	139,371,245	126,567,419

As at 31 March 2025, CO² emission allowances relate to the effect of recognising allowances granted free of charge for 2025.

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 2025, The Navigator Company, S.A.'s share capital of Euro 500,000,000 is fully subscribed and paid up and is represented by 711,183,069 shares without nominal value (31 December 2024: 711,183,069 shares).

As at 31 March 2025 and 31 December 2024, the Shareholders with qualified shareholdings in the Company's capital were as follows:

		31-03-2025		31-12-2024
Entity	No. of shares	%	No. of shares	%
Semapa, SGPS, S.A.	498,042,299	70.03%	498,042,299	70.03%
Floating shares	213,140,770	29.97%	213,140,770	29.97%
	711,183,069	100.0%	711,183,069	100.0%

As at 31 March 2025 and 31 December 2024, Navigator did not hold any treasury shares.

5.2. Earnings per share

	31-03-2025	31-03-2024
Profit attributable to Navigator's equity holders (Euro)	48,297,009	64,075,631
Total number of shares issued	711,183,069	711,183,069
Weighted average number of shares	711,183,069	711,183,069
Basic earnings per share (Euro)	0.068	0.090
Diluted earnings per share (Euro)	0.068	0.090

5.3. Non-controlling interests

Detail of non-controlling interests, by subsidiary

	%		Equity		Net profit
Amounts in Euro	held	31-03-2025	31-12-2024	31-03-2025	31-12-2024
Raiz – Instituto de Investigação da Floresta e Papel	3.0%	375,743	360,347	15,396	13,961
		375,743	360,347	15,396	13,961

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

As at the reporting date, there are no rights of protection of non-controlling interests that significantly restrict the entity's ability to access or use assets and settle liabilities of the Group.

Movements of non-controlling interests

Amounts in Euro	31-03-2025	31-12-2024
Opening balance	360,347	327,018
Net profit for the period	15,396	36,018
Other comprehensive income	-	(2,689)
Closing balance	375,743	360,347

5.4. Interest-bearing liabilities

			31-03-2025			31-12-2024
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Bond loans	547,500,000	90,000,000	637,500,000	547,500,000	100,000,000	647,500,000
Commercial paper	50,000,000	35,000,000	85,000,000	85,000,000	35,000,000	120,000,000
Bank loans	75,718,362	35,080,736	110,799,098	81,266,782	35,529,242	116,796,024
Charges with bond issuances	(3,128,435)	-	(3,128,435)	(3,442,860)	-	(3,442,860)
Refundable grants	16,483,165	7,219,439	23,702,604	15,905,149	7,219,439	23,124,588
Debt securities and bank debt	686,573,092	167,300,175	853,873,267	726,229,071	177,748,681	903,977,752
Average interest rate, considering charges for annual fees and hedging operations			2.4%			2.4%

During the three-month period ended 31 March 2025, the evolution of financing was determined by the repayments inherent in the contracted debt, resulting from the amortisation of bank loans (Euro 4.8 million), bond loans (Euro 10 million) and commercial paper (Euro 35 million).

Interest-bearing liabilities - details

						31-03-2025
Amounts in Euro		Outstanding
Bond loans	Amount	amount	Maturity	Interest rate	Current	Non-current
Navigator 2022-2028 ESG	150,000,000	150,000,000	June 2028	Variable rate indexed to Euribor, with swap to fixed rate	50,000,000	100,000,000
Navigator 2019-2026	50,000,000	50,000,000	January 2026	Fixed rate	-	50,000,000
Navigator 2021-2026	12,500,000	12,500,000	April 2026	Variable rate indexed to Euribor	2,500,000	10,000,000
Navigator 2020-2026	75,000,000	75,000,000	December 2026	Variable rate indexed to Euribor, with swap to fixed rate	37,500,000	37,500,000
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
Navigator 2024-2029	50,000,000	50,000,000	June 2029	Variable rate indexed to Euribor, with swap to fixed rate		50,000,000
Navigator 2024-2031	50,000,000	50,000,000	June 2031	Variable rate indexed to Euribor, with swap to fixed rate		50,000,000
Navigator SLB 2024-2031	50,000,000	50,000,000	October 2031	Variable rate indexed to Euribor		50,000,000
Navigator 2024-2031 SLB	100,000,000	100,000,000	May 2031	Variable rate indexed to Euribor		100,000,000
Comissions	-	(3,128,435)			-	(3,128,435)
European Investment Bank (EIB)
EIB Loan – Cacia	9,722,222	9,722,222	May 2028	Fixed rate	2,777,778	6,944,444
EIB Loan – Figueira	22,857,143	22,857,143	February 2029	Fixed rate	5,714,286	17,142,857
EIB Loan – Biomass Boiler	23,571,429	23,571,429	March 2031	Fixed rate	3,928,572	19,642,858
EIB Loan	115,000,000		up to 12 years after repayment	Indexed to the cost of EIB funds, on disbursement
Commercial Paper Program
Commercial Paper Programme 175M	35,000,000	35,000,000	February 2026	Fixed rate	35,000,000	-
Commercial Paper Programme 65M ESG	19,500,000	-	February 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Program 75M	75,000,000	-	January 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Program 50M	50,000,000	-	December 2025	Variable rate indexed to Euribor	-	-
Commercial Paper Program 50M 2024-2030	50,000,000	50,000,000	June 2030	Variable rate indexed to Euribor	-	50,000,000
Interest-bearing liabilities
Long-term investment	30,000,000	30,000,000	March 2031	Variable rate indexed to Euribor		30,000,000
Finance leases	3,423,049	3,423,049	December 2027	Variable rate indexed to Libor	1,434,845	1,988,203
Refundable grants
AICEP / Other	23,702,604	23,702,604			7,219,439	16,483,165
Bank credit facilities
Short-term facility 20M	20,450,714	-			-	-
Short-term facility 20M GBP	21,225,255	21,225,255		Variable rate indexed to Libor	21,225,255	-
	1,136,952,416	853,873,267			167,300,175	686,573,092

31-12-2024

Amounts in Euro	Amount	Outstanding amount		Interest rate	Current	Non-current
Bond loans			Maturity
Navigator 2022-2028 ESG	150,000,000	150,000,000	June 2028	Variable rate indexed to Euribor, with swap to fixed rate	50,000,000	100,000,000
Navigator 2019-2026	50,000,000	50,000,000	January 2026	Fixed rate	-	50,000,000
Navigator 2019-2025	10,000,000	10,000,000	March 2025	Variable rate indexed to Euribor, with swap to fixed rate	10,000,000	-
Navigator 2021-2026	12,500,000	12,500,000	April 2025	Variable rate indexed to Euribor	2,500,000	10,000,000
Navigator 2020-2026	75,000,000	75,000,000	December 2026	Variable rate indexed to Euribor, with swap to fixed rate	37,500,000	37,500,000
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
Navigator 2024-2029	50,000,000	50,000,000	June 2029	Variable rate indexed to Euribor, with swap to fixed rate	-	50,000,000
Navigator 2024-2031	50,000,000	50,000,000	June 2031	Variable rate indexed to Euribor, with swap to fixed rate	-	50,000,000
Navigator SLB 2024-2031	50,000,000	50,000,000	October 2031	Variable rate indexed to Euribor	-	50,000,000
Navigator 2024-2031 SLB	100,000,000	100,000,000	May 2031	Variable rate indexed to Euribor	-	100,000,000
Comissions	-	(3,442,861)			-	(3,442,861)
European Investment Bank (EIB)
EIB Loan – Cacia	9,722,222	9,722,222	May 2028	Fixed rate	2,777,778	6,944,444
EIB Loan – Figueira	25,714,286	25,714,286	February 2029	Fixed rate	5,714,286	20,000,000
EIB Loan – Biomass Boiler	25,535,714	25,535,714	March 2031	Fixed rate	3,928,571	21,607,143
EIB Loan	115,000,000	-	up to 12 years after repayment	Indexed to the cost of EIB funds, on disbursement	-	-
Commercial Paper Program
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 Program 75M	75,000,000	-	January 2026	Variable rate indexed to Euribor	-	-
Commercial Paper Program 50M	50,000,000	-	December 2025	Variable rate indexed to Euribor	-	-
Commercial Paper Program 50M 2024-2030	50,000,000	50,000,000	June 2030	Variable rate indexed to Euribor	-	50,000,000
Interest-bearing liabilities
Long-term investment	55,000,000	30,000,000	March 2031	Variable rate indexed to Euribor	-	30,000,000
Finance leases	4,432,695	4,432,695	December 2027	Variable rate indexed to Libor	1,717,499	2,715,195
Refundable grants
AICEP	23,124,589	23,124,588			7,219,439	15,905,150
Bank credit facilities
Short-term facility 20M	20,450,714	-			-	-
Short-term facility 20M GBP	21,391,108	21,391,108		Variable rate indexed to Libor	21,391,108	-
	1,212,371,328	903,977,752			177,748,681	726,229,071

In the period ended 31 March 2025, the average cost of debt, considering interest rate, the annual fees and hedging operations, was 2.4% (31 December 2024: 2.4).

As at 31 March 2025, the Group had 67% of its financing associated with the compliance with sustainability commitments or the financing of assets previously considered ESG (31 December 2024: 65%).

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

	Non-current interest-bearing liabilities
Amounts in Euro	31-03-2025	31-12-2024
Non-current
1 to 2 years	219,128,278	252,140,074
2 to 3 years	19,640,074	19,640,074
3 to 4 years	111,031,746	113,746,941
4 to 5 years	53,928,571	56,785,714
More than 5 years	285,972,858	287,359,128
	689,701,527	729,671,931
Comissions	(3,128,435)	(3,442,860)
	686,573,092	726,229,071

As at 31 March 2025, the Group had contracted Commercial Paper Programmes, contracted and undisbursed long-term financing, as well as available and undrawn credit facilities of Euro 279,950,714 (31 December 2024: Euro 304,950,714).

As at 31 March 2025 and 31 December 2024, the Group's interest-bearing net debt was as follows:

31-03-2025	31-12-2024
853,873,267	903,977,752
(193,547,577)	(286,628,866)
660,325,690	617,348,886
110,651,606	111,736,900
770,977,296	729,085,786

Movements in liabilities of the Group's financing activities

Amounts in Euro	31-03-2025	31-12-2024
Balance as at 1 January	903,977,752	659,344,463
Payment of interest-bearing liabilities	(51,816,788)	(124,542,159)
Receipts from interest-bearing liabilities	1,011,653	352,162,243
Payment Repayable grants	-	(7,219,439)
Change in financing cash flows	(50,805,135)	220,400,645
Exchange rate effect	(191,792)	649,317
Repayable grants	578,016	(103,281)
Change in borrowing costs	314,426	(828,111)
Change in the perimeter	-	24,514,719
Other changes	892,442	23,583,327
Changes in interest-bearing debt	(50,104,485)	244,633,289
Gross interest-bearing debt	853,873,267	903,977,752

5.5. Lease liabilities

Lease liabilities – Nature

			31-03-2025			31-12-2024
Amounts in Euro	Non-current	Current	Total	Non-current	Current	Total
Forestry lands	58,362,148	3,711,452	62,073,600	57,264,280	3,571,330	60,835,610
Buildings	722,874	599,744	1,322,618	874,505	595,254	1,469,759
Vehicles	4,631,297	2,411,937	7,043,234	4,878,286	2,422,257	7,300,543
Software licenses	-	-	-	-	7,537	7,537
Other lease liabilities	33,884,240	6,327,914	40,212,154	35,610,598	6,512,853	42,123,451
	97,600,559	13,051,047	110,651,606	98,627,669	13,109,231	111,736,900

Lease liabilities – Movements

Amounts in Euro	31-03-2025	31-12-2024
Balance as at 1 January	111,736,900	69,996,821
Change in the perimeter	-	40,087,211
Contract amortisation	(4,618,353)	(15,661,601)
New contracts	2,561,667	15,399,731
Interest expense	1,113,263	3,896,924
Exchange rate effect	(279,019)	991,670
Other changes	137,148	(2,973,856)
Total changes in related liabilities	(1,085,294)	41,740,079
Balance as at 31 December	110,651,606	111,736,900

Lease liabilities – Future liabilities

			31-03-2025			31-12-2024
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	8,955,535	4,095,511	13,051,046	8,979,261	4,129,971	13,109,232
1 to 2 years	8,644,138	3,626,103	12,270,241	8,889,165	3,663,989	12,553,154
2 to 3 years	5,923,151	3,224,359	9,147,510	6,181,341	3,241,953	9,423,294
3 to 4 years	5,516,373	2,880,312	8,396,685	5,558,231	2,901,466	8,459,697
4 to 5 years	4,971,758	2,558,599	7,530,357	4,835,706	2,580,681	7,416,387
More than 5 years	47,475,645	12,780,122	60,255,767	47,803,576	12,971,560	60,775,136
Present value of liabilities	81,486,600	29,165,006	110,651,606	82,247,280	29,489,620	111,736,900

For the periods ended 31 March 2025 and 31 December 2024, there were no changes in the liability arising from financing activities, including changes arising from cash flows and/or other changes in lease liabilities.

5.6. Cash and cash equivalents

Amounts in Euro	31-03-2025	31-12-2024
Cash	69,937	36,915
Short-term bank deposits	54,077,640	34,591,951
Other short-term investments	139,400,000	252,000,000
	193,547,577	286,628,866

As at 31 March 2025, Other short-term investments included Euro 120 million invested by Navigator in short-term, highly liquid deposits and issuers with an adequate rating, which were used in the current period, as well as Euro 19.4 million invested in Repurchase Agreements (REPOs) of European Union Allowances (EUAs) with a maturity of less than 3 months. These EUA REPOs are investments that can be easily converted into liquidity at any time without penalty and under which there is no risk of a significant change in value.

As at 31 March 2025 and 31 December 2024, 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	31-03-2025	31-03-2024
Interest paid on debt securities and bank debt	(7,164,865)	(5,959,566)
Interest paid on other interest-bearing liabilities	(262,847)	(302,505)
Commissions on loans and expenses with the opening of credit facilities	(629,083)	(431,515)
Interest paid using the effective interest method	(8,056,795)	(6,693,586)
Interest paid on lease liabilities	(1,113,263)	(664,407)
Financial expenses related to the Group's capital structure	(9,170,058)	(7,357,993)
Favourable / (Unfavourable) exchange rate differences	(2,172,876)	-
Gains / (Losses) on financial instruments – trading	-	(5,377,091)
Other financial expenses and losses	(1,177,408)	(598,376)
Financial expenses and losses	(12,520,342)	(13,333,461)
Interest earned on financial assets at amortised cost	1,274,014	1,097,978
Unfavourable exchange rate differences	-	154,837
Gains on financial instruments – hedging (Note 8.1)	1,781,782	2,909,136
Gains / (Losses) on financial instruments – trading	2,370,439	-
Gains on compensatory interest	-	359,553
Financial income and gains	5,426,235	4,521,504
Financial results	(7,094,107)	(8,811,957)

Net financial results improved by Euro 1.7 million year-on-year to Euro -7.1 million in the quarter (vs. Euro -16.1 million in the previous quarter and Euro -8.8 million in the same period of the previous year).

Amounts in Euro	31-03-2025	31-03-2024
Interest paid on debt securities and bank debt	(7,164,865)	(5,959,566)
Commissions on loans and expenses with the opening of credit facilities	(629,083)	(431,515)
Gains on financial instruments - hedging (Note 8.2)	1,781,781	2,909,136
Cost of interest-bearing liabilities operations	(6,012,167)	(3,481,945)

The costs of interest-bearing liabilities amounted to Euro 6 million (vs Euro 3.48 million in the same period of the previous year), reflecting the replacement of credit facilities contracted at a time when interest rates were at historic lows with new financing indexed to higher market benchmarks than those recorded in the past, albeit contracted with very competitive spreads.

Amounts in Euro	31-03-2025	31-03-2024
Favourable / (Unfavourable) exchange rate differences	(2,172,876)	154,837
Gains / (Losses) on financial instruments – trading	2,370,439	(5,377,091)
Foreign exchange results	197,563	(5,222,254)

Despite the strong exchange rate volatility in the first quarter, the exchange rate risk management policies in place once again proved their effectiveness, with the net exchange rate effect incorporated from trading derivatives in the period amounting to Euro 0.2 million, compared to Euro -5.2 million in the first quarter of 2024. It should be noted that the financial results recorded in the first quarter of 2024 included an exceptional exchange rate effect (non-cash) of Euro - 4.3 million.

6. Income tax

6.1. Income tax for the period

6.1.1. Income tax recognised in the consolidated income statement

Amounts in Euro	31-03-2025	31-03-2024
Current tax	15,029,959	25,819,460
Change in uncertain tax positions in the period	(8,458)	(2,207,643)
Deferred tax (Note 6.2)	2,431,943	1,224,558
	17,453,444	24,836,375

As at 31 March 2025, current tax includes Euro 11,851,089 (31 March 2024: Euro 21,455,779) regarding the liability created under the aggregated income tax regime of The Navigator Company, S.A. in Portugal.

As at 31 March 2025 and 31 March 2024, 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 ended 31 March 2025 and 31 March 2024, the Group considers a nominal tax rate in Portugal of 26.5% and 27.5%, respectively, resulting from the tax legislation as follows:

	31-03-2025	31-03-2024
Portugal
Nominal income tax rate	20.0%	21.0%
Municipal surcharge	1.5%	1.5%
	21.5%	22.5%
State surcharge - on the share of taxable profits between Euro 1,500,000 and Euro 7,500,000	3.0%	3.0%
State surcharge – on 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

Amounts in Euro	31/03/2025	31/03/2024
Profit before income tax	65,765,849	88,925,967
Expected tax at nominal rate (21%)	13,153,170	18,674,453
Municipal surcharge (2025: 1.60% ; 2024: 1.74%)	1,054,226	1,543,439
State surcharge (2025: 3.17% ; 2024: 3.97%)	2,081,810	3,529,919
Tax resulting from the applicable rate	16,289,206	23,747,811
Nominal tax rate for the period	24.8%	26.7%
Differences (a)	755,293	983,797
Changes in estimates relating to previous periods	(8,458)	-
Autonomous taxation	114,521	104,767
Change in tax rate	302,882	-
	17,453,444	24,836,375
Effective tax rate	26.5%	27.9%

(a) This amount concerns mainly:

	31-03-2025	31-03-2024
Capital gains/ (losses) for tax purposes	9,779	(2,896)
Capital gains/ (losses) for accounting purposes	(11,719)	2,521
Taxable provisions and impairment	(484,474)	-
Tax benefits	(884,811)	(1,519,377)
Other	4,221,389	5,097,195
	2,850,164	3,577,443
Tax effect (26.5%)	755,293	983,797

6.1.2. Tax recognised in the consolidated statement of financial position

Amounts in Euro	31-03-2025	31-12-2024
Assets
Amounts pending repayment	20,621,461	20,621,461
	20,621,461	20,621,461
Liabilities
Corporate Income Tax - IRC	40,464,531	27,868,324
Additional tax liabilities (IRC)	13,470,045	13,470,045
	53,934,576	41,338,369

Detail of Corporate Income Tax - IRC (net)

Amounts in Euro	31-03-2025	31-12-2024
Income tax for the period	15,029,959	92,286,353
Payments on account, special and additional payments on account	-	(68,520,255)
Withholding tax recoverable	(2,627,064)	(1,893,645)
Corporate Income Tax payable / (repayable) from previous periods	30,975,269	7,209,171
Other payables / (receivables)	(2,913,633)	(1,213,300)
	40,464,531	27,868,324

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

Amounts in Euro	31-03-2025	31-03-2024
Payment / (Repayment) of corporate income tax for the previous period	(9,149)
Withholding tax	733,419	735,527
Income tax paid / (received)	724,270	735,527

Amounts pending repayment

Amounts in Euro	31-03-2025	31-12-2024
2005 Corporate Income Tax (RETGS) – Proceeding 1259/ 09.3BESNT	13,886,728	13,886,728
2015 Proceeding – Proceeding 21/22.2BALSB	5,364,441	5,364,441
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
Other	13,570	13,570
	20,621,461	20,621,461

The movements in the period are detailed as follows:

Amounts in Euro	31-03-2025	31-12-2024
Balance at the beginning of the period	20,621,461	18,385,534
Increases	-	5,364,441
Payments / (receipts)	-	(2,961,843)
Reversals	-	(166,671)
	20,621,461	20,621,461

Uncertain tax positions- Liabilities

Amounts in Euro	31-03-2025	31-12-2024
Balance at the beginning of the period	13,470,045	18,100,389
Increases	-	3,864,026
Transfers	-	(6,451,126)
Reversals	-	(2,043,244)
Change in the period	-	(4,630,344)
	13,470,045	13,470,045

Taxes paid in litigation

As at 31 March 2025 and 31 December 2024, 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	31-03-2025	31-12-2024
2006 Aggregate Corporate Income Tax (Note 10.3) – Proceeding no. 909/11.6 BEALM	8,150,146	8,150,146
Aggregate Corporate Income Tax 2018 - Proceeding 648/23.5BEALM	8,014,795	8,014,795
Aggregate Corporate Income Tax 2018 - Proceeding 525/13.4BEALM	1,457,205	1,457,205
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 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
State Surcharge 2021 – Proceeding no. 702/24.6BEALM	6,154,906	6,154,906
	58,208,049	58,208,049

6.2. Deferred taxes

Movements in deferred taxes

	As at 1		Income Statement	Equity	Exchange	As at 31
Amounts in Euro	January 2025	Increases	Decreases	Increases/ Decreases	rate adjustment	March 2025
Temporary differences originating deferred tax assets
Tax losses carried forward	59,614,137	-	(1,527,915)	-	(442,187)	57,644,035
Provisions and impairment losses taxed	13,851,147	3,513,948	(445,123)	-	-	16,919,972
Adjustment of property, plant and equipment	19,207,012	1,312,565	(633,082)	-	-	19,886,495
Deferred accounting gains on intra-group transactions	28,565,595	-	(17,349,207)	-	-	11,216,388
Valuation of biological assets	28,116,466	1,159,855	-	-	-	29,276,321
Lease liabilities relating to right-of-use assets	74,717,190	3,487,736	(816,290)	-	13,519	77,402,155
Other temporary differences	2,703,693	12,677	-	-	(28,699)	2,687,671
	226,775,240	9,486,781	(20,771,617)	-	(457,367)	215,033,037
Temporary differences originating deferred tax liabilities
Pensions and other post-employment benefits	(697,958)	-	-	-	-	(697,958)
Financial instruments	(16,342,114)	-	-	(1,579,012)	-	(17,921,126)
Valuation of biological assets	(7,849,765)	-	-	-	-	(7,849,765)
Adjustment of property, plant and equipment	(294,201,945)	(5,367,869)	5,502,465	-	244,473	(293,822,876)
Fair value calculated in business combinations	(131,857,791)	-	3,157,033	-	727,823	(127,972,935)
Government grants	(2,902,778)	-	97,435	-	-	(2,805,343)
Right-of-use assets	(68,093,592)	(967,157)	792,497	-	-	(68,268,252)
Other temporary differences	(120,601)	-	-	-	892	(119,709)
	(522,066,544)	(6,335,026)	9,549,430	(1,579,012)	973,188	(519,457,964)
Deferred tax assets	59,110,851	2,244,438	(5,577,709)	-	(114,475)	55,663,105
Deferred tax liabilities	(135,938,603)	(1,608,011)	2,509,339	(454,084)	243,296	(135,248,063)

	As at 1			Income Statement	Equity	Exchange		As at 31
Amounts in Euro	January 2024	Change in the perimeter	Increases	Decreases	Increases/ Decreases	rate adjustment	Adjustments	December 2024
Temporary differences originating deferred tax assets
Tax losses carried forward	52,846	56,496,586	10,330,494	(8,763,724)		1,497,935	-	59,614,137
Provisions and impairment losses taxed	16,674,924	-	3,399,158	(6,222,935)	-	-	-	13,851,147
Adjustment of property, plant and equipment	32,384,050	-	3,369,216	(16,546,254)	-	-	-	19,207,012
Deferred accounting gains on intra-group transactions	11,750,244	-	19,587,315	(2,771,964)	-	-	-	28,565,595
Valuation of biological assets	24,904,297	-	3,212,169	-	-	-		28,116,466
Conventional capital remuneration	280,000	-	-	(280,000)	-	-	-	-
Lease liabilities relating to right-of-use assets	-	589,227	74,127,963	-		-		74,717,190
Other temporary differences	-	-	2,688,330	-	-	15,363	-	2,703,693
	86,046,361	57,085,813		116,714,645 (34,584,877)	-	1,513,298	-	226,775,240
Temporary differences originating deferred tax liabilities
Pensions and other post-employment benefits	(795,430)	-	(27,809)	(31)	125,312	-	-	(697,958)
Financial instruments	(18,072,331)	-	-	-	1,526,544	-	203,673	(16,342,114)
Valuation of biological assets	(3,519,844)	-	(4,329,921)	-	-	-	-	(7,849,765)
Adjustment of property, plant and equipment	(286,279,805)	(35,345,525)	(2,286,008)	30,589,642	-	(880,249)	-	(294,201,945)
Fair value calculated in business combinations	(39,840,800)	(99,779,568)	-	10,301,191	-	(2,538,614)	-	(131,857,791)
Government grants	(3,714,470)	-	-	424,209	-	-	387,483	(2,902,778)
Right-of-use assets	-	-	(68,093,592)	-	-	-	-	(68,093,592)
Other temporary differences	-	(117,536)	-	-	-	(3,065)	-	(120,601)
	(352,222,680)	(135,242,629)	(74,737,330)	41,315,011	1,651,856	(3,421,928)	591,156	(522,066,544)
Deferred tax assets	23,653,501	14,271,453	31,624,928	(9,287,124)	-	378,325		60,641,083
Effect of the change in tax rate	-	-	-	(1,530,232)	-	-	-	(1,530,232)
Deferred tax assets	23,653,501	14,271,453		31,624,928 (10,817,356)	-	378,325	-	59,110,851
Deferred tax liabilities	(95,856,013)	(33,810,656)	(20,539,643)	11,036,624	510,271	(855,484)	97,445	(139,417,456)
Effect of the change in tax rate	-	-	-	3,332,199	146,654	-	-	3,478,853
Deferred tax liabilities	(95,856,013)	(33,810,656)	(20,539,643)	14,368,823	656,925	(855,484)	97,445	(135,938,603)

As at 31 March 2025 and 31 December 2024, the rate of 26.50% was used in the measurement of deferred taxes for companies in Portugal. Moreover, deferred taxes for companies in the United Kingdom and Spain were calculated at a rate of 25%.

7. Payroll

7.1. Payroll costs

Amounts in Euro	31-03-2025	31-03-2024
Remuneration of Corporate Bodies - variable	830,654	1,028,211
Remuneration of Corporate Bodies – variable	593,892	1,069,197
Other remunerations	39,273,381	34,314,554
Social Security contributions	7,953,201	6,921,272
Post-employment benefits (Note 7.2.4)	419,815	302,983
Other payroll costs	3,638,433	6,206,370
Payroll costs	52,709,376	49,842,587

The increase in Other remunerations compared to the same period last year is essentially due to the incorporation of the "Consumer" tissue business in the United Kingdom as a result of the acquisition of the Navigator Tissue Uk Group in May 2024, with an impact on the period of Euro 4,780,766.

Variation

Number of employees by segment at the end of the period

	31-03-2025	31-03-2024	25/24
Market pulp	311	295	16
UWF	1,793	1,782	11
Tissue	1,054	1,036	18
Corporate	841	838	3
	3,999	3,951	48

The number of employees includes 440 (432 as at 31 December 2024) employees assigned to the tissue business in the United Kingdom and 164 in Spain.

Other Payroll costs are detailed as follows during the periods ended 31 March 2025 and 2024:

Amounts in Euro	31-03-2025	31-03-2024
Training	431,279	407,358
Social action	697,050	569,998
Insurance	1,856,548	1,493,167
Compensations	600,804	3,716,701
Other	52,752	19,146
	3,638,433	6,206,370

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 2025, three Defined Contribution plans were in force in Portugal, covering 3,214 employees (2024: 3,278 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:

	2025 2024
Amounts in Euro	No. of Beneficiaries	Amount	No. of Beneficiaries	Amount
Past service liabilities
Active employees, including individual accounts	301	43,344,735	301	43,344,735
Alumni	114	17,567,947	114	17,567,947
Retired employees	662	98,711,371	662	98,711,371
Market value of pension funds		(158,714,675)		(160,971,371)
Total net liabilities	1,077	909,378	1,077	(1,347,318)

Funds

Funds allocated to the defined benefit pension plans - evolution

Amounts in Euro	31-03-2025	31-12-2024
Opening balance	160,971,371	159,034,022
Remeasurement	(2,256,696)	2,051,343
Balance as at 31 March	158,714,675	161,085,365
Remaining quarters	-	(113,994)
Balance as at 31 December	158,714,675	160,971,371

The pension fund assets allocated to the defined benefit plan are managed by the following entities:

Amounts in Euro	31/03/2025	31/12/2024
Defined benefits and Conta 1:
AGEAS - Pensions	(45,584)	(51,992)
Schroders	54,816,985	55,790,911
Santander AM	55,499,579	56,467,629
Account 1 - Julius Baer	48,443,695	48,764,823
Total defined benefits and Conta 1	158,714,675	160,971,371

Funds allocated to defined benefit plans - composition of assets

Amounts in Euro	31-03-2025	%	31-12-2024	%
Securities listed in the market
Bonds	96,906,890	61.06%	98,435,081	61.15%
Shares	37,686,882	23.75%	41,216,140	25.60%
Public debt	17,753,413	11.19%	15,406,040	9.57%
Liquidity	1,468,670	0.93%	1,260,572	0.78%
Other short-term investments	4,898,820	3.09%	4,653,538	2.89%
	158,714,675	100.00%	160,971,371	100.00%

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

7.2.3. Defined contributions plan

As at 31 March 2025 and 31 December 2024, three defined contribution plans were in force on behalf of employees.

The assets of the pension fund that finance the defined contribution plans are managed by the company Ageas, as detailed below:

Amounts in Euro	No. of Profitability			No. of Profitability
	Beneficiaries	%	2025	Beneficiaries	%	2024
Defined Contribution (Ageas Pensions):
Defensive sub-fund	152	-0.40%	7,425,769	112	3.34%	5,608,582
Conventional sub-fund	414	-0.40%	14,098,533	408	5.20%	15,773,907
Dynamic sub-fund	812	-0.71%	15,889,155	771	8.54%	15,999,063
Aggressive sub-fund	1,915	-0.75%	6,582,728	1,987	11.42%	7,209,476
Total defined contribution	3,293		43,996,186	3,278		44,591,028

7.2.4. Expenses incurred with post-employment benefit plans

The effect in the income statement for the periods ended 31 March 2025 and 31 March 2024 was as follows:

		31-03-2025		31-03-2024
Amounts in Euro	Defined contribution - Contributions for the period	Impact on net result (Note 7.1)	Defined contribution - Contributions for the period	Impact on net result (Note 7.1)
Defined contributions plans	419,815	419,815	302,983	302,983
	419,815	419,815	302,983	302,983

8. Financial instruments

8.1. Derivative financial instruments

Movements in derivative financial instruments

			31-03-2025			31-12-2024
Amounts in Euro	Trading derivatives	Hedging derivatives	Net total	Trading derivatives	Hedging derivatives	Net total
Balance at the beginning of the period	(1,631,313)	16,342,114	14,710,801	(4,068,868)	17,835,988	13,767,120
New contracts / settlements	-	(1,781,783)	(1,781,783)	4,967,834	(11,296,062)	(6,328,228)
Change in fair value through profit or loss	2,370,439	1,781,782	4,152,221	(2,530,279)	11,328,732	8,798,453
Change in fair value through other comprehensive income	-	1,579,012	1,579,012	-	(1,526,544)	(1,526,544)
Balance at the end of the period	739,126	17,921,125	18,660,251	(1,631,313)	16,342,114	14,710,801

8.1.1. Detail and maturity of derivative financial instruments by nature

						31-03-2025
Amounts in Euro	Notional	Currency	Maturity	Positive (Note 4.2)	Negative (Note 4.3)	Net amount
Hedging
Hedging (future sales)	221,136,000	USD	2025	3,883,075	-	3,883,075
Hedging (future sales)	178,800,000	GBP	2025	630,450	-	630,450
Interest rate swaps – Bonds	525,000,000	EUR	2031	8,450,402	(2,341,556)	6,108,846
Energy	47,286,232	EUR	2027	8,247,676	(948,922)	7,298,754
				21,211,603	(3,290,478)	17,921,125
Trading
Foreign exchange forwards (future sales)	60,500,000	USD	2025	862,746	-	862,746
Exchange rate forwards (future sales)	40,900,000	GBP	2025	-	(123,619)	(123,619)
				862,746	(123,619)	739,127
				22,074,349	(3,414,097)	18,660,252

						31-12-2024
Amounts in Euro	Notional	Currency	Maturity	Positive (Note 4.2)	Negative (Note 4.3)	Net amount
Hedging
Hedging (future sales)	272,000,000	USD	2025	-	(1,103,142)	(1,103,142)
Hedging (future sales)	130,000,000	GBP	2025	-	(262,405)	(262,405)
Interest rate swaps – Bonds	535,000,000	EUR	2031	8,383,516	(3,314,640)	5,068,876
Energy	24,653,150	EUR	2025	12,638,785	-	12,638,785
				21,022,301	(4,680,187)	16,342,114
Trading
Foreign exchange forwards (future sales)	60,500,000	USD	2025	-	(1,597,134)	(1,597,134)
Exchange rate forwards (future sales)	40,900,000	GBP	2025	-	(34,179)	(34,179)
				-	(1,631,313)	(1,631,313)
				21,022,301	(6,311,500)	14,710,801

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

During the first quarter of 2025, the Group concluded the Zero Cost Collar contracting of the derivative financial instruments begun in the last quarter of 2024, thus guaranteeing full hedging of the estimated exposure of USD 272,000,000 and GBP 210,000,000 for 2025.

Cash flow hedge | Interest rate

During the first quarter of 2025, a swap in the amount of Euro 10,000,000 associated with the amortisation of a financing contracted for the period 2019-2025 matured.

Energy Hedging

In view of the Group's exposure to the electricity and natural gas purchase market, in the first quarter of 2024 the company entered into swap contracts to lock in 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.

During the first quarter of 2025, we increased our electricity coverage for the current year to approximately 74,445 MWh, 96,288 MWh for 2026 and 97,080 MWh for 2027.

9. Provisions, commitments and contingencies

9.1. Provisions

Movements in provisions

	Legal	Other
Amounts in Euro	proceedings	provisions	Total
1 January 2024	7,509,334	20,327,950	27,837,284
Increases	-	-	-
Reversals	-	-	-
Impact in profit or loss for the period	-	-	-
Other transfers and adjustments	-	12,290	12,290
31 March 2024	7,509,333	20,340,240	27,849,574
Increases	462,589	169,728	632,317
Reversals	(600,139)	-	(600,139)
Impact in profit or loss for the period	(137,550)	169,728	32,178
Charge-off	-	15,339	15,339
Other transfers and adjustments	345,255	128,723	473,978
31 December 2024	7,717,039	20,654,030	28,371,069
Increases	687,561	-	687,561
Reversals	(61,547)	-	(61,547)
Impact in profit or loss for the period	626,014	-	626,014
Exchange rate adjustment	-	(5,955)	(5,955)
31 March 2025	8,343,053	20,648,075	28,991,128

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

9.2. Commitments

Guarantees provided to third parties

Amounts in Euro	31-03-2025	31-12-2024
Guarantees provided
Navigator guarantees for EIB loans	11,666,667	11,666,667
Ocean Network Express	2,751,947	2,751,947
AT - Tax and Customs Authority	9,288,070	9,288,070
Comissão Coordenação Desenvolvimento Regional	831,323	354,083
Agência Portuguesa Ambiente	3,337,887	3,337,887
Simria	338,829	338,829
Other	799,901	1,193,505
	29,014,624	28,930,988

Purchase commitments

Amounts in Euro	31-03-2025	31-12-2024
Purchase commitments
Property, plant and equipment – Industrial equipment	136,649,342	145,451,837
Energy	107,332,533	103,786,050
Wood
Commitments with acquisitions in the subsequent period	196,000,000	251,400,000
Commitments to long-term acquisitions	56,900,000	56,900,000
	496,881,875	557,537,887

The Navigator Group's subsidiary Abastecimento de Madeira, ACE, signed a contract with Portline Ocean Bulk, Inc. for the chartering of ships to transport 940,000m3m, initially planned for the 2022, 2023 and 2024 periods, which was extended to 2025 and 2026 without changing the overall volume to be transported.

Moreover, the Group has entered into energy purchase commitments amounting to Euro 107,332,533 (Euro 103,786,050 as at 31 December 2024).

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 245.7 million have already been invested until 31 March 2025 (31 December 2024: Euro 232.2 million).

10.Group structure

10.1. Companies included in the consolidation perimeter

10.1.1. Navigator Group subsidiaries

Share equity owned %
				31-03-2025	31-12-2024
Company	Head Office		Direct Indirect	Total	Total	Main activity
Parent company:
The Navigator Company, S.A.	Portugal	-	-	-		- Sale of paper and pulp
Subsidiaries:
Navigator España, S.A.	Portugal	100.0	-	100.0		100.0 Acquisition, operation, lease or concession of the use and disposal of
		100.0		100.0		trademarks, patents and other industrial or intellectual property
Navigator Parques Industriais, S.A.	Portugal	100.0	-	100.0		100.0 Management of industrial real estate
Navigator Pulp Figueira, S.A Empremédia - Corretores de Seguros, S.A.	Portugal Portugal	100.0	-	100.0		100.0 Paper production 100.0 Insurance mediation and advisory services
Empremedia, DAC	Ireland	100.0	-	100.0		100.0 Management 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
						100.0 Production of cellulose pulp and provision of administration, management and
Navigator Pulp Figueira, S.A.	Portugal	100.0	-	100.0		internal advisory services
Ema Cacia - Engenharia e Manutenção Industrial, ACE	Portugal	-	73.8	73.8	73.8
Ema Setúbal - Engenharia e Manutenção Industrial, ACE	Portugal	-	80.7	80.7	80.7	Provision of industrial maintenance services
Ema Figueira da Foz – Engenharia e Manutenção Industrial,	Portugal		79.7	79.7	79.7
ACE		-
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		100.0	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 Moçambique - Sociedade de Desenvolvimento Florestal e	Mozambique	90.0		90.0		90.0 Forestry production
Industrial, Lda			-
Navigator Forest Portugal, S.A.	Portugal	100.0	-	100.0		100.0 Forestry production
EucaliptusLand, S.A.	Portugal	-	100.0	100.0		100.0 Forestry production
Gavião - Sociedade de Caça e Turismo, S.A.	Portugal	-	100.0	100.0		100.0 Management of hunting resources
Afocelca - Agrupamento complementar de empresas para	Portugal	-	64.8	64.8		64.8 Provision of forest fire prevention and fighting services
protecção contra incêndios, ACE
Viveiros Aliança - Empresa Produtora de Plantas, S.A.	Portugal	-	100.0 100.0	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 Navigator Paper Setúbal , S.A.	Italy	- 100.0		100.0		100.0 Trade in wood and biomass and logging
Navigator North America Inc.	Portugal USA		- 100.0	100.0		100.0 Paper and energy production 100.0 Sale of paper
		-
Navigator Afrique du Nord	Morocco	-	100.0	100.0	100.0
Navigator España, S.A.	Spain	-	100.0	100.0	100.0
Navigator Netherlands, BV	The Netherlands	-	100.0	100.0	100.0	Provision of sales intermediation services
Navigator France, EURL	France	-	100.0	100.0	100.0
Navigator Paper Company UK, Ltd	United Kingdom	-	100.0	100.0	100.0
Navigator Holding Tissue UK, Ltd (formerly Accrol Group	United Kingdom	-	100.0	100.0		Holding company
Holdings plc)
Navigator Corporate UK, ltd (formerly Accrol UK, ltd)	United Kingdom	-	100.0	100.0		Holding company
Accrol Holdings, ltd	United Kingdom	-	100.0 100.0	100.0 100.0		Holding company
Navigator Tissue UK, ltd (formerly Accrol Papers, ltd) United Kingdom LTC Parent Ltd	United Kingdom	-	100.0	100.0		Tissue paper conversion Holding company
Leicester Tissue Company ltd	United Kingdom	-	100.0	100.0		Tissue paper conversion
Art Tissue ltd	United Kingdom	-	100.0	100.0		Sale of tissue paper
John Dale (Holdings) ltd	United Kingdom	- -	100.0	100.0		Holding company
John Dale, ltd	United Kingdom	-	100.0	100.0		Tissue paper production
Severn Delta, ltd	United Kingdom	-	100.0	100.0		Tissue paper production
Navigator Italia, SRL	Italy	-	100.0	100.0	100.0
Navigator Deutschland, GmbH	Germany	-	100.0	100.0	100.0
Navigator Paper Austria, GmbH	Austria	-	100.0	100.0	100.0
Navigator Paper Poland SP Z o o	Poland	-	100.0	100.0	100.0
Navigator Eurasia	Turkey	-	100.0	100.0	100.0
Navigator Paper Mexico	Mexico	25.0	75.0	100.0	100.0	Provision of sales intermediation services
Navigator Middle East Trading DMCC	Dubai	-	100.0	100.0	100.0
Navigator Egypt, ELLC	Egypt	1.0	99.0	100.0	100.0
Navigator Paper Southern Africa	South Africa	1.0	99.0	100.0	100.0
Portucel Nigeria Limited	Nigeria	1.0	99.0	100.0	100.0
Navigator Green Fuels Setúbal, S.A.	Portugal	100.0	-	100.0		100.0 Production of sustainable fuels.
Navigator Green Fuels Figueira da Foz, S.A.	Portugal	100.0	-	100.0		100.0 Production of sustainable fuels.
Navigator Abastecimento de Madeira, ACE	Portugal	97.0	3.0	100.0		100.0 Sale of timber

10.1.2. Jointly controlled operations

		Share equity owned %
				31-03-2025	31-12-2024
Company	Head Office		Direct Indirect	Total	Total	Main activity
Pulpchem Logistics, A.C.E.	Portugal	50.0	-	50.0		50.0 Purchases of materials, subsidiary materials and services used in the pulp and paper production processes

10.2. Changes in the consolidation perimeter

During the period ended 31 March 2025, there were no changes in the consolidation perimeter.

10.3. Transactions with related parties

Balances with related parties

	31-03-2025 31-12-2024
Amounts in Euro	Receivables (Note 4.2)	Payables (Note 4.3)	Receivables (Note 4.2)	Payables (Note 4.3)
Shareholders (Note 5.1)
Semapa - Soc. de Investimento e Gestão, SGPS, S.A.	-	2,921	-	1,155,456
Other subsidiaries of Semapa Group
Secil - Companhia Geral Cal e Cimento, S.A.	-	18,384	-	18,970
Secil Britas, S.A.	-	69,329	-	84,277
Unibetão, S.A.	-	223,202	-	237,150
Other related parties
Hotel Ritz, S.A.	-	2,142	-	844
	-	315,978	-	1,496,697

Transactions with related parties in the period

	31-03-2025		31-12-2024
Amounts in Euro	Purchase of goods and services	Sales and services rendered	Purchase of goods and services	Sales and services rendered
Shareholders (Note 5.1)
Semapa - Soc. de Investimento e Gestão, SGPS, S.A.	3,708,517	-	2,942,839	42
	3,708,517	-	2,942,839	42
Other subsidiaries of Semapa Group
Secil - Companhia Geral Cal e Cimento, S.A.	-		35,965	-
Secil Britas, S.A.	4,271	-	28,680	-
Unibetão, S.A.	280,960	-	220,404	-
	285,231	-	285,049	-
Other related parties
Hotel Ritz, S.A.	1,298	-	844	-
	1,298	-	844	-
	3,995,046	-	3,228,732	42

On 1 February 2013, a contract to render administrative and management services was signed between Semapa - Sociedade de Investimentos e Gestão, SGPS, S.A. (currently owner of 70.03% of the Group´s share capital) and Navigator Group, establishing a remuneration system based in equal criteria for both parties in the continuous cooperation and assistance relationships, that meets the rules applicable to commercial relationships between Group companies.

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

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

11.Explanation added for translation

These financial statements are a translation of the financial statements originally issued in Portuguese. In the event of discrepancies, the Portuguese language version shall prevail.

BOARD OF DIRECTORS

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

António José Pereira Redondo Chairman of the Executive Board

José Fernando Morais Carreira de Araújo Executive Board Member

Nuno Miguel Moreira de Araújo Santos Executive Board Member

João Paulo Cabete Gonçalves Lé Executive Board Member

Dorival Martins de Almeida Executive Board Member

António Quirino Vaz Duarte Soares Executive Board Member

Ana Teresa Cunha de Pinto Tavares Lehmann Member

Hugo Alexandre Lopes Pinto Member

Maria Isabel da Silva Marques Abranches Viegas Member

Maria Teresa Aliu Presas Member

Mariana Rita Antunes Marques dos Santos Member

Sandra Maria Soares Santos Member

Vítor Paulo Paranhos Ferreira Member

Condensed Interim • Consolidated Financial Statements – Q1 2025 63 | 63