The Navigator Company

Interim / Quarterly Report • Oct 22, 2025

FIBRE FLORA FROM FOREST FOCUS FLEXIBILITY FAUNA TO FUTURE FORM FERTILITY

2025 Interim Results

First Nine Months

THE NAVIGATOR COMPANY

PERFORMANCE IN FIRST 9 MONTHS OF 2025	2
First 9 Months of 2025 vs. 9 Months 2024	2
Analysis 3 rd Quarter (vs. Q2 2025 and vs. Q3 2024)	3
LEADING INDICATORS	3
Pulp Market
Growth and strong performance in Tissue business	8
Packaging - From Fossil to Forest - investment in sustainability, innovation and change	9
80% of Power Output generated from renewable energy sources	11
Financial Results	12
Free cash flow generation of €23 million	13
Sustainable Financial Management	13
Capital expenditure of € 160 million	14
From Forest to the Future	14
Responsible Business: Innovation & Sustainability	14
External recognition of our commitment to sustainability	16
OUTLOOK	17
FINANCIAL STATEMENTS	19

PERFORMANCE IN FIRST 9 MONTHS OF 2025

The first nine months of 2025 brought a high level of volatility, driven by the conflicts in the Middle East and Eastern Europe, the uncertainty resulting from the upturn in protectionism, and political instability in some of the developed economies, all these factors have added to the macroeconomic risks. Like all the players in international trade, Navigator has felt the effect of the economic slowdown in the main markets where it operates.

In this context, the sector has faced severe pressure, visible in the sharp downturn in pulp prices in China since April, with an impact in Europe. The third quarter marked the lowest point in this downward cycle.

Faced with falling prices across its markets, Navigator succeeded in positioning itself competitively. Firmly established around the globe, it was able to seize opportunities, grow its volumes in all paper segments and increase its market share. Focussed on operational excellence, the company has implemented programmes to optimise and streamline variable costs, and the downward course of production costs is already visible, despite the temporary impact of cost categories such as energy and chemicals, the effect of which has tended to be diluted. Rewarding these efforts, Pulp and Tissue production costs fell at the end of the 3rd quarter to their second-lowest level since mid-2021, and Paper production cash costs were the lowest for the past two years.

The company has stuck to its strategy of controlling fixed costs, which were stabilised in relation to 2024 (on a comparable basis and excluding non-recurrent items), neutralising the impact of inflation and substantial pay rises, and identifying opportunities for future structural reductions.

Vertical integration, combined with the efficiency and flexibility of its business model, brings Navigator competitive advantages and opens the way to alternative strategies for growth. Alongside commercial strategy and market diversification, business diversification and innovation in new products remain at the heart of Navigator's strategy, especially in the Tissue and Packaging segments, where there is still great potential for growth.

First 9 Months of 2025 vs. 9 Months 2024

• Turnover totalled € 1,489 million (down 5% on 9M 2024);
• EBITDA stood at € 300 million (down 30% on 9M 2024), with an EBITDA margin of 20.2% (down 7.3 pp on 9M 2024); the success of the diversification strategy, with the new Tissue and Packaging sector already accounting for around 30% of EBITDA, has helped cushion the impact of the pressure on profits from the drop in Pulp and Paper prices experienced over the period;
• Net income for the period totalled € 118 million (down 51% on 9M 2024);
• Net debt stood at € 770 million at 30 September (excluding the effect of IFRS 16), up by € 152 million on December, despite an interim dividend payout of € 100 million in the 1 st quarter, a further payout of € 75 million in the 3rd quarter and the high level of capex over the period (€ 160 million). The Net Debt/EBITDA ratio stood at 1.85x;
• A new green finance facility, worth € 40 million, part of a total of € 80 million, was signed with the European Investment Bank (EIB) in order to accelerate decarbonisation of operations in Portugal. The facility, secured under the InvestEU programme, will enable Navigator to invest in low carbon technologies, energy efficiency and production of innovative packaging, strengthening the group's commitment to sustainability and its sound financial position;

• In the first nine months of the year, Navigator achieved its best ever frequency rate (the indicator for accidents at work leading to sick leave), underlining its commitment to Occupational Health and Safety, through the 'Mission Zero' strategy and ongoing work in prevention, training and consolidating a safety culture.

Analysis 3rd Quarter (vs. Q2 2025 and vs. Q3 2024)

• The volume of UWF and Packaging sales stood at 316 thousand tons (in line with Q2 and up 15% on Q3 2024); in a quarter when seasonal effects kicked in early, and in a troubled market situation, we achieved our highest ever 3rd quarter sales volume since 2022;
• The volume of pulp sales stood at 90 thousand tons (up 31% on Q2 and down 6% on Q3 2024); output in the quarter was constrained by an unscheduled stoppage, caused by a fire in the bleaching towers in Setúbal in July, which resulted in a reduction of around 25 thousand tons in market pulp;
• Tissue sales totalled 58 thousand tons (in line with Q2 and down 7% on Q3 2024); the highlight was business in Iberia, which recorded its best ever quarter in sales of finished products. Integration of the UK operation has proceeded with increased collaboration between local and Iberian teams, with a view to boosting crossselling opportunities between markets, optimising the portfolio so as to market more profitable products and, alongside this, a cost review to make the operation more efficient;
• The Packaging segment performed well, with sales and prices both growing, and the sales volume in tons up 10% over the same quarter in 2024. This was the second-best result ever for this segment, only surpassed by that for 2022, when the exceptional demand in this segment enabled Navigator to achieve record results.

LEADING INDICATORS

Million euros	9M	9M	Change (8)
	2025	2024	9M 25/9M 24
Total Sales	1489.3	1568.5	-5.1%
EBITDA (1)	300.2	431.3	-30.4%
Operating Profits (EBIT)	174.0	316.6	-45.0%
Financial Results	-22.2	-9.7	-128.6%
Net Earnings	118.3	241.4	-51.0%
Cash Flow	244.6	356.1	- 111.5
Free Cash Flow (2)	22.7	-3.3	26.1
Capex	159.6	150.9	8.7
Net Debt (3)	769.6	643.2	126.4
EBITDA/Sales	20.2%	27.5%	-7.3 pp
ROS	11.7%	20.2%	-8.5 pp
ROCE (4)	20.4%	21.9%	-1.5 pp
ROE (5)	11.5%	23.7%	-12.2 pp
Equity Ratio	43.9%	45.1%	-1.2 pp
Net Debt /EBITDA (6)(7)	1.85	1.16	0.69

Million euros	Q3	Q2	Change (8)	Q3	Change (8)
	2025	2025	Q3 25/Q2 25	2024	Q3 25/Q3 24
Total Sales	470.2	489.8	-4.0%	503.0	-6.5%
EBITDA (1)	83.9	100.8	-16.7%	132.5	-36.7%
Operating Profits (EBIT)	36.6	64.5	-43.2%	91.0	-59.7%
Financial Results	-8.2	-6.9	-1.4	0.7	-9.0
Net Earnings	33.1	36.9	-10.4%	82.6	-59.9%
Cash Flow	80.4	73.2	7.1	124.1	- 43.7
Free Cash Flow (2)	-18.9	-15.4	- 3.4	21.3	- 40.1
Capex	66.0	57.2	8.7	57.8	8.1
Net Debt (3)	769.6	675.7	93.9	643.2	126.4
EBITDA/Sales	17.8%	20.6%	-2.7 pp	26.3%	-8.5 pp
ROS	7.8%	13.2%	-5.4 pp	18.1%	-10.3 pp
ROCE (4)	7.1%	12.9%	-5.8 pp	18.9%	-11.8 pp
ROE (5)	9.7%	10.9%	-1.2 pp	24.3%	-14.6 pp
Equity Ratio	43.9%	41.5%	2.4 pp	45.1%	-1.2 pp
Net Debt /EBITDA (6)(7)	1.85	1.46	0.40	1.16	0.69

• 1. Operating profits + depreciation + provisions
• 1. Variation in net debt + dividends + purchase of own shares l Q2 2024 includes impact of acquisition of Accrol (payment of € 153 million for the shares and consolidation of additional debt)
• 1. Interest-bearing liabilities liquid assets (not including effect of IFRS 16)
• 1. ROCE = Annualised operating income / Average Capital invested (N+(N-1))/2
• 1. ROE = Annualised net income / Average Shareholders' Funds last -1 months
• 1. (Interest-bearing liabilities liquid assets) / EBITDA corresponding to last 12 months
• 1. Impact of IFRS 16: Net debt / EBITDA of 2.92x; Net Debt / EBITDA (9M 2024) of 1.36x
• 1. Variation in figures not rounded up/down

Note: Navigator Tissue UK's business was integrated into the group in Q2 2024

ANALYSIS OF RESULTS

(9M 2025 vs. 9M 2024)

The diversification strategy continues to deliver strong results, with the Tissue and Packaging sectors already accounting for around 30% of turnover and EBITDA, which has helped cushion the pressure on results in a context of falling Pulp and Paper prices. At the same time, the focus on cutting variable costs has been effective, reflected in a consistent reduction in unit cash costs in all business areas. Pulp and Tissue production costs fell at the end of the 3rd quarter to their second-lowest level since mid-2021, and Paper production cash costs were the lowest for the past two years.

The Printing and Writing paper industry

Apparent global demand for all Printing and Writing papers, YTD August, was down by 2.7%, with UWF (Uncoated Woodfree) again the most resilient grade, showing a decline of 1.6%, in contrast to coated papers (Coated Woodfree – CWF) for which demand dropped by 5.1%. Demand for paper produced from mechanical pulp (coated and uncoated) dropped by 4.2%.

In the first nine months of the year, apparent demand for UWF was down by 6% in Europe, as deliveries and imports shrank across the continent. Intra-European deliveries dropped by 6% and European imports fell by 10%, in relation to the same period last year (estimated, YtD September), confirming an abrupt slowdown in effective demand in the region.

In the United States, the reduction in consumption YTD August was more moderate (down 1%). The closure of the largest mill of a major local player further added to the structural need for imports, which grew by 31% over the previous year, also leveraged by anticipation of new tariffs. The sector's heavy dependence on imports, exacerbated by the capacity closure and application of customs tariffs, drove up prices, which are expected to remain at high levels, even in a scenario of shrinking consumption, with further price hikes forecast up to 2026.

Navigator's operating rate (shipments / capacity) stood at 87% in the first nine months of the year (up 7pp YoY), whilst the rate of the industry as a whole recovered slightly from 80% to 81% (up 1pp on the same period in 2024).

It should be emphasized that, in the first nine months of 2025, Navigator increased its market share of total deliveries by 1.2 percentage points in relation to the same period last year, achieving a share of approximately 26%. This growth was driven by strong performance on international markets (up 6pp), whilst its share on European markets has held steady at over 18%.

In the first nine months, UWF order books for the European industry fell by 2% in relation to the same period in 2024 (down 5pp in Europe and up 14pp on international markets). Weaker order books reflect market uncertainty, which has led clients to delay purchasing decisions. In countercyclical move, Navigator recorded growth of 12% (up 6% in Europe and 23% on international markets) in the inflow of client orders, in relation to 2024, enabling its order books to return to more comfortable levels, after the squeeze they experienced in late 2024. Navigator reduced its stocks in September to the lowest level since 2021.

Source: PPPC, August (2025 vs. 2024) l All years YTD August

The benchmark index for Office paper prices in Europe, PIX A4 B-copy, stood at an average of 1,023€/t, in the first nine months of 2025, down by 8% on the same period in the previous year. Even with significant adjustments, UWF market indexes remain strong, still higher than historic levels.

Until September, Navigator's average sales price in Europe matched the evolution of the benchmark prices, but with two distinct strategies. On the one hand, there was an increased focus on economy products, enabling the company to boost volumes, albeit to the detriment of the product mix. On the other hand, price premiums on value added products preserved the favourable position in relation to the respective market indexes (PIX A4 Bcopy). On the international markets, prices were penalised by the weaker dollar and the drop in the PIX BHKP China index.

Navigator's UWF and Packaging sales totalled 959 thousand tons in the first nine months of 2025, edging up by 1% on the same period in 2024 and reflecting the group's success in recovering volumes. In value, sales were down by 7% over the same period.

Pulp Market

After bottoming out at 1,000 \$/t at the start of the year, the benchmark index for hardwood pulp – PIX BHKP in dollars rallied to 1,218 \$/t in April (up 16%) in Europe, only to lose ground again in the months that followed, returning to 1,000 \$/t in August, and remaining there until the end of September. Cumulative demand through August edged down by 0.6% in relation to the previous year, with the growth in Tissue (up 0.3% YTD July) failing to offset the drop in demand for printing papers (down 6% UWF and down 9% CWF, YTD September).

After reaching a low of 544 \$/t in the first week of 2025, the hardwood pulp price in China turned around and reached a peak of 601 \$/t in early April (up 10%), driven by restrictions on supply (maintenance/commercial shutdowns by Latin American producers) and the upturn in business, with the improvement in downstream sectors. From April through to August, there was a steep downwards adjustment in prices, strongly influenced by overcapacity in the sector, in view of the current situation of severe tensions in international trade and the downturn in demand in certain paper segments in Western markets. The cycle bottomed out at a price of 493 \$/t (down 18%), the lowest figure ever, since 2021. Although this downward cycle has been shorter than previous ones, it started from a significantly lower peak, reflecting structurally weaker base than in preceding cycles. By the end of the quarter, prices rallied slightly to 513 \$/t, with cumulative demand up by 12% on 2024, sustained by restocking and the upturn in the domestic market.

Nonetheless, global demand for hardwood pulp grew by 8% YoY (YTD August). China remains the main engine of growth, with an impressive increase of 12%, followed by Rest of World (+9%). In contrast, demand in Europe has continued to fall, in line with shrinking consumption of printing paper, edging down by 1%. In the USA, demand dropped by 1%, after heavy restocking in the same period last year.

The strongest global growth was for eucalyptus pulp (EUCA), up by more than 10% in the first eight months of the year, with China growing 14% and Europe in line with the same period in 2024. This performance has consistently boosted EUCA's share in the hardwood bleached chemical pulp segment.

On the supply side, the ramp-up of projects that moved on to the market in 2024 increased the availability of market pulp in 2025, exerting a degree of pressure on operating rates. Even so, factors such as growing consumption, maintenance shutdowns and recently announced production cuts helped to balance the market and sustain the activity of hardwood producers in the first nine months of the year.

Global Pulp Demand (in million tons)

Source: PPPC, August (2025 vs. 2024)

In Europe, stock levels remained relatively stable. In China, although stocks at ports have been building up since January, analysis of paper production suggests that this growth is proportional to the expansion in industrial operations, and not an anomalous accumulation. The ratio of stocks to days of production has held relatively steady in recent months, pointing to a balance between supply and demand.

Navigator's pulp sales totalled 258 thousand tons, down by 7% on the same period in 2024, due to decreased output of pulp exacerbated by the fire in Setúbal in July (around 25 thousand tons). The value of sales fell by 24% YoY, as a result of the drop in prices.

Growth and strong performance in Tissue business

After substantial growth (6.3%) in 2024, European demand for Tissue (YTD September) was up slightly YoY, rising by 0.3%. There was a positive contribution from Western Europe of 0.6% and a negative contribution from Eastern Europe of 0.9%.

During the first nine months of 2025, Navigator's Tissue sales (finished products and reels) totalled 177 thousand tons, up by 14% on the same period in 2024, with the value of sales up by 17%.

The YoY figures were boosted by the integration of Navigator Tissue UK, in May 2024, which, as well as extending the product range and contributing to growth in sales, expanded the customer base and generated gains by unlocking synergies. It has also permitted cross-selling, which has further strengthened commercial relations with clients.

The Tissue segment combines two operations based on distinct models: the Iberian operation is integrated, entailing both Paper Production and Converting into finished products. In contrast, the operation in the United Kingdom is centred exclusively on Converting into finished products, meaning that there is no margin from paper production. For this intrinsic reason, the business margin for the UK operation is structurally lower.

Integration of the operation in the United Kingdom is going ahead with increased collaboration between local teams and Iberia, seeking to leverage opportunities for cross-selling between markets, optimise the portfolio to market more profitable products, win new clients and, at the same time, review the cost structure in order to make the operation more efficient.

International sales in Tissue business accounted for 80% of the sales volume in the reporting period (vs. 54% in 2022, prior to integration of Tissue Ejea and Tissue UK). The English market took the largest share, with 35% of sales, followed by Spain, with 30%, and France, which accounted for 14% of sales. In the last two years, acquisitions of new units in Spain and in the United Kingdom have enabled us to balance our geographical mix, offering 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 9M 2025 1 2 (vs. 9M 2024)

¹Tons ²May to September 2024 and 9M 2025 includes Tissue UK ³Finished products and reels

During this quarter, Navigator expanded its product portfolio, with the launch of new Amoos Max compact kitchen rolls – an innovative, sustainable and efficient solution. FSC and Ecolabel certified, Amoos Max kitchen rolls contribute to logistical efficiency and to lower emissions, aligned with the company's environmental commitments.

This new kitchen roll has taken its place in the existing range, alongside products such as Amoos Resistant, Power Limão and Calorie Control. The compact format, particularly popular in Spain, already accounts for 40.4% of the market share. The Amoos brand has been consolidating its position in the Iberian Peninsula, standing out from the crowd thanks to innovative features such as in Amoos Air Sense and Calorie Control. In 2025, the brand was awarded the Five Star, Consumer's Choice and Product of the Year accolades.

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

The global market for Machine Glazed (MG) and Machine Finished (MF) kraft papers grew by approximately 11% (YtD August), reflecting strong performance.

In this segment, Navigator's sales were up YoY by 7% in the first nine months of 2025, thanks to a 1% rise in price and a 7% increase in volume, with growth in the area of paper sold of 10%, due to increased penetration in low grammage segments.

Over the same nine-month period in 2025, the Flexible Packaging segment grew by 4% YoY. The top performers here were release liner products, together with solutions for food and non-food packaging, which are strategic priority areas for our business. These segments benefit in particular from the use of lightweight papers, where Eucalyptus Globulus offers significant competitive advantages, both economically and technically.

The project to convert the PM3 paper machine in Setúbal, announced in May, will enable Navigator to respond quickly and efficiently to the growing demands of 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, as demonstrated by growth in the gKRAFT brand and the strong performance of gKRAFT low grammages for flexible packaging solutions.

The European kraft paper market grew to approximately 2.7 million tons in 2024, and is forecast to reach 3.6 million tons by 2035 (CAGR 2.8%/year). Unbleached MF kraft has greater potential (CAGR 3.2%). The low grammage sector (LBW, <60 gsm) is especially attractive, with additional growth potential due to the substitution of plastics.

MF and MG kraft papers are used in similar applications, such as bags, sachets and several flexible packaging items. Traditionally, MF is a slightly lower cost alternative, with inferior surface quality in comparison with MG. However, with the conversion of PM3 in Setúbal, production of MF kraft papers in the gKRAFT range will be able to compete with MG on quality.

In Europe, MF kraft paper for packaging purposes is produced by paper suppliers which typically only have production capacity above 60 gsm. The overwhelming majority of the paper machines with capacity to produce <40gsm are old, small and driven to MG kraft paper.

Source: Afry 2025

Rebuild of the PM3 machine in Setúbal takes advantage of Navigator's vertical integration and the cost efficiency of Eucalyptus globulus fibre for producing distinctive top quality kraft papers. These papers have established a reputation for softness and low permeability, having already been tested by clients, in particular in the food sector and release liners for feminine hygiene, bolstering our position in segments which can be predicted to grow.

As a result of this rebuild, Navigator will move up to fourth place in the European league table of low-grammage flexible packaging manufacturers, strategically consolidating its presence in a segment where demand is surging. In order to ensure that assets are more flexible and adaptable, the project has been designed to permit, if necessary, production of different grades of UWF paper, guaranteeing our capacity to respond to market dynamics and preparing us for future scenarios.

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.

Navigator's packaging paper offering is based on three gKraft macro segments: BAG, FLEX and BOX, aimed respectively at the markets for Bags (retail, consumer and industrial bags), Flexible Packaging (serving a variety of industries: agri-food, restaurants, pharmaceutical and hygiene products, etc.), and Boxes (corrugated cardboard boxes for value-added products, 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 broad 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 Cellulose components, designed to substitute single-use plastic packaging in the food service and food packaging market, under the gKraft Bioshield brand. During 2025, the first contracts were signed with major retail distribution and Navigator started to move into the segment for modified atmosphere packaging for raw protein. This packaging requires exhaustive testing, under tough industrial and supply chain conditions, in order to ensure it is suitable for packing lines and refrigeration conditions used by distributors, replacing non-recyclable PET/PE trays with packaging solutions which are 100% recyclable and compostable. Alongside this, efforts were stepped up to expand into new European markets, as Navigator set its sights on growing towards market leader status.

80% of Power Output generated from renewable energy sources

In the first nine months of 2025, electricity sales totalled approximately € 76 million, representing a reduction of 20% in relation to the same period in the previous year. This reduction was essentially connected to the following factors: (i) the renewable cogeneration units in Aveiro and a turbogenerator (TG3) in Figueira da Foz switched to production for internal consumption, as a result of the special pricing system being discontinued, and (ii) the planned maintenance shutdown at the Aveiro Biomass Power Plant.

In terms of generation capacity, a new biomass boiler is under construction at the industrial complex in Vila Velha de Ródão, due to start operation in late 2024 and set to substitute 5.245 kNm3 of natural gas each year with biomass. This figure corresponds to 69% of the total natural gas consumed at VVR in the first 9 months and 3.6% of the total natural gas consumed by Navigator in the same period, and a photovoltaic solar plant with capacity of 5.3 MWp for self-consumption by the plant.

The first nine months of 2025 were also marked by high electricity and natural gas prices, most particularly in the first quarter of the year. In relation to the same period in 2024, the spot price for electricity on the Iberian market (OMIE) was up by approximately 23% and the TTF, the benchmark index for the European natural gas market, recorded an increase of more than 26%. Prices have peaked this year at 143 €/MWh for electricity and 58 €/MWh for natural gas.

The group's industrial units continued to actively 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. Over the course of 2025, Navigator has been mobilised on 16 occasions to reduce its power consumption, under the mFRR Band service.

ERSE (the Portuguese Energy Services Regulatory Authority), following the European Commission's decision of 24 April 2025, approved Directive No. 6/2025, which sets the Grid Access Tariffs (GAT) to be applied to power consumption facilities with the status of electrointensive consumer. Within this framework, Navigator's highvoltage consumption facilities will now benefit from a significant reduction in the CIEG (General Economic Interest Costs) charges on the overall system use tariff.

EBITDA of € 300 million

The company's diversification strategy has presented consistent results, with the new Tissue and Packaging segments already accounting for around 30% of turnover and EBITDA. This performance has helped cushion the impact of the pressure on profits from falling Pulp and Paper prices over the period.

The focus on cutting variable costs has been effective, reflected in a downward tendency in unit cash costs in all businesses. Pulp and Tissue production costs fell at the end of the 3rd quarter to their second-lowest level since mid-2021, and Paper production cash costs were the lowest for the past two years, presenting significant reductions compared to the preceding quarter.

The company has stuck to its strategy of controlling fixed costs, which were stabilised in relation to 2024 (on a comparable basis and excluding non-recurrent items), neutralising the impact of inflation and substantial pay rises, and identifying opportunities for future structural reductions.

We are also achieving real success in management of our personnel structure, maintaining the freeze on new hires. This progress demonstrates the effectiveness of our strategic measures, securing improved operational efficiency and financial discipline. We remain focused on optimising resources and generating sustainable value for the organisation, reaffirming our capacity to adapt to future challenges.

It should be noted that the impact on EBITDA, resulting from the instability in costs and prices over the period, was cushioned by the company's policies for managing financial risk, in particular through the fixing of electricity and natural gas prices, as well as foreign exchange hedges.

In this context, Navigator recorded EBITDA of € 300 million in the first nine months (vs. € 431 million in the same period in 2024), with an EBITDA margin of 20.2% (down 7.3 pp YoY).

Financial Results

Financial results deteriorated by € 13 million in relation to the same period in 2024, standing at a loss of € 22 million in the first nine months of 2025 (vs. € -10 million in the same period in 2024). The main contributing factors were an increase in financing costs (up € 6.5 million) and a rise in the net cost of exchange rate differences of € 3.9 million (from € -0.4 million in 2025 to € 3.4 million in 2024).

The increase in financing costs was expected and resulted from the increase in debt in relation to the previous year, as well as, from the higher interest rates contracted (up by approximately 0.3% in the weighted average of the cost of borrowing). Average indebtedness increased by € 217 million over the nine-month period ended 30 September 2024 (€ 876 million vs. € 659 million).

Although contracted with competitive costs, with base rate spreads lower than historical levels, the debt negotiated as from June 2024 and during the first nine months of 2025 presents higher overall costs than the debt it replaced, as this had been contracted in conjunction with financial hedges at a period of historically low interest rates. It should nonetheless be noted that average debt maturity increased significantly, from 3.7 years in September 2024 to 5.2 at 30 September 2025.

Pre-tax profits totalled € 151 million (vs. € 307 million in 9M 2024) and corporation tax payable stood at € 33 million, with an effective tax rate for the period of 22%. Net income stood at € 118 million (vs. € 241 million in the same period in 2024).

Free cash flow generation of €23 million

Free cash flow generation totalled € 23 million in the first nine months of 2025 (vs. € -3 million in the same period in 2024). It should be noted that, although 2024 reflects the investment in acquisition of what is now called Navigator Tissue UK, both periods were marked by a high level of capex, in excess of € 150 million (€ 160 million in the first 9 months of 2025 and € 151 million in the same period in 2024).

This level of capital expenditure includes projects under the Recovery and Resilience Plan (RRP), which are proceeding as scheduled. Eligible investments for this purpose, of approximately € 269 million, will benefit from investment support of more than € 100 million. Up to September 2025, Navigator had received incentives totalling approximately € 66 million, of which € 20 million has been paid in 2025.

Sustainable Financial Management

At 30 September 2025, net debt stood at € 770 million, up by € 152 million on December, despite a dividend payout of € 175 million and the current period of heavy capital expenditure (€ 160 million in the first nine months). The Interest-Bearing Net Debt/EBITDA ratio stood at 1.85x, further consolidating the financial strength displayed by the Group.

Debt repayments of € 394 million were made over the first nine months, of which € 275 was repaid early, with the dual aim of increasing the average debt maturity and increasing the proportion of debt with sustainable features.

Long term facilities worth € 365 were contracted over the period, of which facilities totalling € 140 million are as yet unused. This includes the € 40 million loan from the EIB, the first tranche of a total facility of € 80 million, intended for a series of projects geared to accelerating Navigator's decarbonisation plan.

The € 225 million negotiated and issued over the period has a maturity of 7 years and contributed to extending average debt maturity to 5.2 years, up from 3.5 years in December, whilst retaining rationally staggered repayments and boosting the proportion of debt indexed to sustainability indicators to 79% (vs. 65% in December). At the end of the period, 78% of total debt issued was on a flat rate basis, directly contracted as such or thanks to interest rate hedges. It should be noted that, despite interest rates rising across the market in relation to last financing cycle, our average cost of financing at the end of September remained low, at approximately 2.6%.

Debt Maturity Profile Total debt: 885 M€ Average maturity: 5.2 years

Liquidity = Cash € 116 M + Long Term Unused Credit Facilities € 140 M

Capital expenditure of € 160 million

In the first nine months of 2025, capital expenditure totalled € 160 million (compared to € 151 million in 9M 2024), of which approximately € 97 million corresponds to value-creating environmental or sustainability investment, accounting for approximately 61% of total.

This investment consisted mostly of projects aimed at decarbonisation, maintaining production capacity, modernising plant and achieving efficiency gains, as well as structural and safety projects.

The capex projects include the new hi-tech chemical recovery boiler at the Setúbal industrial complex, already in operation, which in addition to a clear improvement in operational performance will also bring positive environmental results, in particular through lower emissions of malodorous gases which will be burned in this facility, and also the oxygen delignification line in Setúbal, due to start up in April 2026, which will enable the plant to reduce consumption of chemicals at the pulp bleaching stage, as well as improving the quality of effluent from this industrial site.

Execution of the projects under the Recovery and Resilience Plan (RRP) is proceeding as scheduled and in line with the commitments made to the Portuguese authorities.

From Forest to the Future

Responsible Business: Innovation & Sustainability

Navigator has based its strategy on a responsible business model, which balances economic performance with the environmental and social pillars. The company believes that sustainability without performance has no impact, and that performance without sustainability fails to secure the future. This balance is regarded as essential for ensuring responsible and lasting growth, geared to creating long term value.

In view of the severe uncertainty currently affecting the economy and extremely volatile energy prices, Navigator has stepped up its commitment to decarbonisation, innovation and operational efficiency, in a constant quest for cost optimisation. The use of sustainable biomass as a preferential energy source and as a lever for decarbonisation is accordingly one of the strategic pillars of this vision. As a resource that results naturally from the pulp production process, reclamation of biomass by-products also enables Navigator to strengthen its strategy of circularity, which is the hallmark of its business.

Alongside this strategy, investment in diversifying power generation assets has added to its operational resilience and reduced its exposure to the volatility of the electricity market.

The Navigator Group is one of Portugal's largest producers of renewable energy from sustainable biomass.

Navigator currently has three renewable biomass co-generation plants, integrated into operations at its industrial complexes in Aveiro, Figueira da Foz and Setúbal. Use of this highly efficient technology makes it possible to supply steam and renewable electricity for production of pulp, paper and Tissue, boosting the synergies at the industrial complexes. The power not consumed is injected into the national grid, contributing to decarbonisation of the country's energy system. At the Aveiro and Setúbal complexes, the group also has two power plants dedicated to the sale of electricity, using sustainable waste forestry biomass as their energy source.

The commitment to renewable energy also extends to photovoltaic solar technology for generating power. Navigator has eight solar power facilities for in-house consumption operating at its industrial complexes, nurseries and its Raiz research centre. Added to these, two other facilities, in Ejea and Figueira da Foz, operate on a longterm PPA (Power Purchase Agreement) basis. In total, the 10 facilities represent rated capacity of 38 MWp, positioning Navigator as the largest producer of solar power for internal consumption in an industrial setting in Portugal. Significantly, Navigator's energy production operations using biomass and photovoltaic technology are activities aligned with the criteria of the European Taxonomy.

Lastly, the group also has two natural gas co-generation plants located on the industrial complexes in Figueira da Foz and Setúbal. The cogeneration plant in Figueira da Foz has been operating on a backup basis since 2021, since the installation of the new Biomass Boiler. In Setúbal, the start-up of the new recovery boiler in May 2025 enabled the complex to optimise generation of renewable steam, making it possible to scale back the activity of the natural gas co-generation plant, which now operates with only one of its two generator sets.

Bioindustry on the Right Side of the Future

Navigator has this quarter reasserted its commitment to decarbonising its industrial processes, investing in innovative technologies which also enable improvements in the circular use of resources. In line with the Decarbonisation Roadmap, projects for replacing natural gas with biomass in two lime kilns have gone into operation, at the Aveiro and Setúbal industrial complexes. In addition, a new lime kiln, also biomass-powered, is at the start-up stage at the Figueira da Foz pulp mill.

These projects are designed to reduce both Greenhouse Gas (GHG) emissions from pulp mills and also dependence on fossil fuels. The new lime kiln in Figueira da Foz will also make a very significant contribution to circular use of resources, by enabling the reclamation of carbonate sludges, reducing by around 90% the quantity of this waste sent to landfill.

Cut direct CO² emissions (EU-ETS) from industrial complexes by 86%

Eucalyptus sawdust can produce energy: innovative project in paper pulp production

The conversion of lime kilns from fossil fuels to sustainable biomass will open the door to innovative use of eucalyptus sawdust, a by-product from wood preparation operations, as a renewable fuel.

At the Setúbal mill, conversion of the lime kiln to biomass as its energy source will lead to a reduction in Gas emissions of around 17,000 tCO2e/year. In Aveiro, the project will permit a reduction of approximately 10,000 tCO2e/year, in performance similar to that of the new biomass-fuelled lime kiln in Figueira da Foz.

In Setúbal, this ground-breaking project has attracted support from the Innovation Fund - the European Union fund for climate policy, geared especially to energy and industry, and working to bring to the market solutions for decarbonising European industry and helping it make the transition to climate neutrality. The Aveiro project and the new lime kiln in Figueira da Foz have been supported by the RRP. Together, the 3 projects represent investment of approximately € 60 million.

The innovation proposed in substituting fossil fuel will improve the cost base of the pulp production process. It once again demonstrates Navigator's commitment to operational efficiency and underlines how its actions are aligned with the principles of sustainability, in transforming waste into value and taking real steps to consolidate the group's circular economy strategy.

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.

In 2025, Navigator was again classified by Sustainalytics as a low-risk company for investors, maintaining its status as an "ESG Industry Top-Rated Company" and reasserting its leadership in the forestry and paper sector. Placing it in the prestigious global list of 2025 ESG Top-Rated Companies, this recent assessment consolidates Navigator's position as one of the world's best companies in terms of environmental, social and governance (ESG) practices.

In 2025, Navigator obtained the top score of "A" on the CDP Climate Change and CDP Forests questionnaires for last year, securing it a place on the prestigious "A List" for Climate and for Forests, and consequently its coveted leadership status. This assessment by CDP (Disclosure Insight Action) provides international recognition of Navigator's commitment and good practices in relation to risk management and deforestation. Only 2% of more than 22 companies assessed by CDP in 2024 were included on the "A List" (meaning they achieved the top score on at least one of the questionnaires).

OUTLOOK

The global economy is showing signs of resilience, with less uncertainty and more favourable prospects of growth. However, the risks remain substantial, including those of protectionism, economic fragmentation and the financial vulnerabilities stemming from the deterioration of public accounts in the leading economies. Although a recession is not thought to be imminent, growth remains poor and uncertainty continues to reign, impacting investment and international trade.

In this context, despite the poor visibility, we anticipate that market conditions will improve in the short term, more perceptibly in the Pulp, Tissue and Packaging segments than in the Printing and Writing Paper segment.

The global Pulp market will continue to be influenced by China, where growth in domestic consumption and projects for new capacity have shaped the market balance. However, a significant proportion of these new lines are still at the initial start-up stage, which could mitigate the impact in the short term. Doubts are also mounting as to the region's ability to supply wood sustainably for the new capacity. This tendency has exerted pressure on international prices and altered trade flows, strengthening Chinese influence on the global balance. In particular, the 3rd quarter of 2025 (with an average price of 502 \$/t in China) was the worst quarter since 2021. It is our expectation that this price point represents the end of the downward price cycle - in both regions (China and Europe), prices ended the 3rd quarter on an upward trajectory.

In the Printing and Writing Paper segment, the global situation remains challenging, shaped by the structural tendency for a decline in consumption and the severe economic slowdown in the main geographical regions.

On the supply side, recent closures have removed annual UWF capacity of approximately 430 thousand tons from Europe, equivalent to 7% of its rated capacity. Additionally, in Europe, another leading player is again contending with financial troubles, pointing to the possibility of capacity reduction in this market.

The US market has displayed greater resilience. The recent capacity reduction by a major player in the US, with the closure of its largest mill (350 thousand tons), representing 8% of the country's capacity, has exacerbated the structural shortfall in US production, estimated at around 800-1,100 thousand tons. A further closure was announced this quarter, of production capacity of approximately 320 thousand tons of UWF, due to take place in the 3rd quarter of 2026, which can be expected to contribute further to increasing the US market's dependence on imports.

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 Latin America. In the case of Latin America, manufacturers are being threatened with tariffs higher than those currently announced for Europe. At the same time, American producers may focus more on their domestic market, which will also open up opportunities in their current export markets.

Despite the complexity of the current situation, new opportunities are also emerging in the UWF market in different geographical regions. Application in Mexico of customs tariffs on imports from Asia and, in Colombia, on imports from Brazil, continues to protect and provide impetus for Navigator's sales in these markets, making it more competitive and expanding its regional presence for as long as the protectionist measures remain in place.

In the Tissue segment, the accumulated increase in demand is estimated at +0.4% (2025) and, for the coming years, annual growth is expected to hold steady at around 1% (2026-2029). With the aim of strengthening its position as a leading Tissue paper producer and of boosting its operational resilience, Navigator launched strategic plan for consolidating its Tissue rolls (toilet paper and kitchen roll) operations in the United Kingdom. The aim is

to transform our business in the United Kingdom into an operation which is even more efficient and competitive in terms of costs, aligned with our best practices.

With the aim of boosting operational efficiency and the competitiveness of its Tissue business in the United Kingdom, Navigator has launched a plan to consolidate Tissue roll (toilet paper and kitchen roll) operations in two strategic regions: Leyland and Leicester. These two centres have been chosen for their potential for optimising supply to the Northern and Southern regions of England, offering greater proximity to the main consumer centres and better logistical coverage of the UK market. The new model, which reduces the total number of sites from 6 (3 production centres in Blackburn, Leyland and Leicester and 3 off-site warehouses in Leicester) to 2 (Leyland and a new site in Leicester), integrates production and storage capacity in a more agile and efficient system, with potential for scalability, lower overheads and improved fluidity in the supply chain.

Upscaling production in Leicester will also bring logistical savings in both Finished Products (thanks to being closer to the more representative customer portfolio in the Midlands and south of the country) and Reels (closer to Felixstowe, the port of entry). Navigator has reaffirmed its commitment to employee welfare, having launched a formal consultation process with workers at the units involved. It has undertaken to preserve as many jobs as possible and to provide full support during the transition period.

The Packaging segment continues to perform well, with growth in sales and rising prices. The project to convert the PM3 paper machine at the integrated pulp and paper mill in Setúbal, announced in May, is proceeding according to plan. As a result of this conversion, Navigator will move up to 4 th place in the European league table of lowgrammage flexible packaging manufacturers, strategically consolidating its presence in a segment where demand is surging.

The quick-footed and flexible response of Navigator's teams to the demands of integrated management of all its operations, from forestry through to the markets, including the group's various industrial units, combined with the company's sound financial position, have added to the company's capacity to face the challenges of the present and prepare for the future with confidence. We believe that all these factors, together with continuous development focused on diversifying the group's business base, will further underpin the resilience and sustainability of our business model.

Conference Call and Webcast for Analysts and Investors

Date: Tuesday, 28 October 2025

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

Link to the Conference Call webcast:

https://streamstudio.world-television.com/1076-1695-42355/en

Link for advance registration for telephone access to Conference Call:

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

FINANCIAL STATEMENTS

The Navigator Company, S.A.

Consolidated Income Statement

On September 30 st 2025 and 2024

Amounts in euro	30/09/2025	30/09/2024
Revenue	1 489 275 261	1 568 542 386
Other operating income	65 173 599	60 945 543
Changes in fair value of biological assets	1 566 021	2 105 380
Costs of goods sold and materials consumed	(651 718 637)	(666 463 752)
Variation in production	(16 568 554)	8 256 760
External services and supplies	(389 935 700)	(347 636 622)
Payroll costs	(160 293 339)	(152 971 921)
Other operating expenses	(37 268 241)	(41 522 340)
Net provisions	(2 533 240)	(104 902)
Depreciation, amortisation and impairment losses in non-financial assets	(123 705 263)	(114 516 135)
Operating results	173 991 907	316 634 397
Financial Income	8 667 083	16 154 626
Financial expenses	(30 855 528)	(25 862 786)
Net financial results	(22 188 445)	(9 708 160)
Profit before tax	151 803 462	306 926 237
Income tax	(33 441 884)	(65 461 060)
Net profit for the period	118 361 578	241 465 177
Attributable to Navigator Company's shareholders	118 336 070	241 444 011
Attributable to non-controlling interests	25 508	21 166

The Navigator Company, S.A.

Consolidated Statement of Financial Positions

On September 30th 2025 and December 31st 2024

Amounts in Euro	30/09/2025	31/12/2024
ASSETS
Non-current assets
Goodwill	420 544 869	422 627 337
Intangible assets	107 831 020	119 600 687
Property, plant and equipment	1 457 419 987	1 415 945 085
Right-of-use assets	94 922 881	98 651 166
Biological assets	114 636 002	115 250 198
Investment properties	351 847	360 170
Other financial assets	1 090 426	1 347 318
Receivables and other non-current assets	4 073 029	13 142 937
Deferred tax assets	54 287 453	59 110 851
	2 255 157 514	2 246 035 749
Current assets
Inventories	311 275 003	303 198 367
Receivables and other current assets	443 408 693	496 698 621
Income tax	35 116 624	20 621 461
Cash and cash equivalents	115 567 621	286 628 866
	905 367 941	1 107 147 315
Total assets	3 160 525 455	3 353 183 064
EQUITY AND LIABILITIES
Capital and Reserves
Share capital	500 000 000	500 000 000
Currency translation reserve	8 548 654	13 829 407
Fair value reserve	6 646 521	12 011 454
Legal reserve	100 000 000	100 000 000
Other reserve	(5 960 836)	(5 960 836)
Retained earnings	660 492 758	548 900 068
Net profit for the period	118 336 070	286 948 195
Anticipated Dividends	-	(99 999 451)
Equity attributable to navigator Company´s Shareholders	1 388 063 167	1 355 728 837
Non-controlling interests	384 795	360 347
Total Equity	1 388 447 962	1 356 089 184
Non-current liabilities Interest-bearing liabilities	718 309 484	726 229 071
Lease liabilities	93 965 373	98 627 669
Deferred tax liabilities	128 053 362	135 938 603
Provisions	31 329 957	28 371 069
Payables and other current liabilities	112 822 038	117 161 513
	1 084 480 214	1 106 327 925
Current liabilities
Interest-bearing liabilities	116 857 189	177 748 681
Lease liabilities	13 277 397	13 109 231
Payables and other current liabilities	489 465 577	658 569 674
Income tax	17 997 116	41 338 369
	687 597 279	890 765 955
Total Liabilities	1 772 077 493	1 997 093 880
Total Equity and Liabilities	3 160 525 455	3 353 183 064

The Navigator Company, S.A.

Share Capital 500 000 000 Eur

Corporate Entity 503 025 798 Registered at the Commercial Register of Setúbal

Headquarters Península de Mitrena. Freguesia do Sado, Setúbal