Interim report
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2026 FIRST HALF INTERIM RESULTS 0 | 23 Second Quarter 2026 Interim Results
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2026 FIRST HALF INTERIM RESULTS 1 | 23 THE NAVIGATOR COMPANY PERFORMANCE IN 2ND QUARTER 2026 ....................................................................................................... 2 Analysis 2nd Quarter (vs. Q1 2026 and vs. Q2 2025) ................................................................................. 2 Analysis First Half 2026 vs. First Half 2025 .............................................................................................. 4 ANALYSIS OF RESULTS ............................................................................................................................ 5 The Printing and Writing paper industry .................................................................................................. 5 Growth and strong performance in Tissue business .................................................................................. 6 Packaging - From Fossil to Forest – investment in sustainability, innovation and change ............................... 8 Pulp Market ......................................................................................................................................... 9 Strategic transformation builds for the future, with temporary impact on EBITDA ....................................... 11 Financial Results ................................................................................................................................ 11 Free cash flow generation of €10 million ............................................................................................... 12 Sustainable Financial Management ....................................................................................................... 12 Capital expenditure of € 127 million ..................................................................................................... 13 From Forest to the Future ...................................................................................................................... 15 Commitment to Sustainability: Transformation, Responsibility and Continuous Improvement .................... 15 External recognition of our commitment to sustainability ......................................................................... 16 OUTLOOK ............................................................................................................................................ 17 FINANCIAL STATEMENTS ....................................................................................................................... 20
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2026 FIRST HALF INTERIM RESULTS 2 | 23 PERFORMANCE IN 2ND QUARTER 2026 The year so far has been marked by a highly volatile business environment, as a result of the worsening geopolitical risks in the Middle East. This scenario has exacerbated the uncertainty in an already challenging operational environment, resulting in a sharp rise in energy prices and repercussions for supply chains, as well as for logistical flows and costs. In Portugal, business was also hampered by adverse weather phenomena in the first quarter, creating temporary constraints in industrial operations. Combined with lower opening stock levels, these factors limited production capacity and our resulting capaci ty to respond to markets over the period. In the 2 nd quarter, recovery was constrained by scheduled maintenance shutdowns at the Setúbal and Aveiro industrial complexes. The shutdown in Setúbal was longer than normal so as to allow for the start -up of a major capex project designed to boost environmental and regulatory performance (oxygen delignification). Navigator is currently nearing the end of a large-scale strategic investment drive, laying the foundations for a new phase of sustainable growth and value creation. The incorporation of new technologies and cutting-edge industrial projects in our pulp mill s has entailed a transitional period of operational adaptation, part and parcel of any transformation on this scale. These capex projects have positioned the Company on the front line of innovation in the sector, driving structural gains in productivity, r educing our consumption of resources and boosting environmental performance. All this paves the way for a sustainable competitive advantage in the medium and long term. With inventory levels already at low levels at the start of the year, reflecting the maximisation of sales volumes towards the end of 2025, the impact of severe weather events in the 1st quarter, together with the planned maintenance shutdowns undertaken during the 2nd and early 3rd quarters, further constrained the availability of pulp and paper volumes, thereby limiting the Company's capacity to support additional sales growth. Alongside this, our cost optimisation and continuous improvement programmes, implemented across all business areas, have continued to generate consistent and measurable results. This operational discipline, combined with a firm commitment to innovation, has enabled us to improve both efficiency and returns, without ever compromising the high-quality standards offered to our clients, for which Navigator is a byword in international markets. Business diversification has been a key pillar of the Group’s resilience and sustainability, and the Tissue segment is a clear example of this direction of travel, having already grown to around a quarter of turnover. Alongside this, our Packaging business, which has so far been developed organically, accounted for more than 6% of sales in the first half, further diversifying and strengthening the Company's portfolio. Analysis 2nd Quarter (vs. Q1 2026 and vs. Q2 2025) • Navigator recorded turnover of € 442 million (up 4% on Q1 2026; down 10% on Q2 2025); • EBITDA stood at € 79 million (up 21 % on Q1 2026; down 22% on Q2 2025), reflecting an EBITDA margin of 18% (up 2.6 pp on Q1 2026; down 2.8 pp on Q2 2025); • Capex stood at € 85 million in the quarter (up 100% on Q1 2026; up 48% on Q2 2025); the projects undertaken prioritise investment in decarbonisation, environmental performance, production maintenance and efficiency. At the same time, the projects co -funded by the Recovery and Resilience Plan (RRP) are nearing completion, strictly honouring our commitments to the Portuguese authorities, whilst a project for a new Tissue machine in Aveiro is getting under way;
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2026 FIRST HALF INTERIM RESULTS 3 | 23 • Sales of Printing and Writing Paper and Packaging Paper, measured in tons, were up by 6% on Q1; we should point to the strong recovery in average sales prices for UWF and Packaging, which in June were already up by 11% from the December averages and 6% from the average figures for March; • Tissue sales, measured in tons, were in line with Q1, and average prices performed well, up by 2%. The sales volume down by 9% on Q2 2025, held down by tougher competition in the United Kingdom and our focus on managing margins, at a time when a project is under way to transform our industrial base in the country with a view to boosting operational efficiency, by streamlining locations, assets and costs. This project is due to be completed during the first half of next year; • After strong growth in the 1st quarter, the Packaging segment grew by a further 9% in relation to Q1, up 67% on Q2 2025 in volume in tons, thanks to the growing reputation of papers made from Eucalyptus globulus in this new segment, in particular for lightweight flexible packaging; • The volume of pulp sales in tons was down in relation to Q1 and Q2 2025; this was due to reduced availability of pulp as a result of the scheduled shutdowns of the Setúbal and Aveiro pulp mills and the need to lay down stocks to see us through the shutdown of the Figueira da Foz pulp mill in July; Energy sales have receded as a proportion of Group turnover due to renewable cogeneration plants now supplying internal consumption, and the Energy segment has been integrated into the Pulp segment, given that their operations are highly interdependent. LEADING INDICATORS Q2 Q1 Change (8) Q2 Change (8) Million euros 2026 2026 Q2 26/Q1 26 2025 Q2 26/Q2 25 Total sales 441.9 426.8 3.5% 489.8 -9.8% EBITDA (1) 78.5 64.8 21.1% 100.8 -22.1% Operating profits 35.9 22.9 56.5% 64.5 -44.4% Financial results - 5.1 - 7.4 -30.8% - 6.9 -25.1% Net earnings 31.9 17.2 85.0% 36.9 -13.6% Cash flow 74.6 59.2 15.4 73.2 1.4 Free Cash Flow (2) - 17.8 28.2 - 46.0 - 15.4 - 2.4 Capex 85.0 42.4 42.6 57.2 27.7 Net Debt (3) 693.2 675.4 17.8 675.7 17.5 EBITDA/Sales (%) 17.8% 15.2% 2.6 pp 20.6% -2.8 pp ROCE (4) 6.8% 4.4% 2.4 pp 12.9% -6.1 pp ROE (5) 9.1% 4.8% 4.3 pp 10.9% -1.8 pp Equity ratio 41.3% 44.5% -3.2 pp 41.5% -0.2 pp Net Debt/EBITDA (6)(7) 2.29 2.08 0.21 1.46 0.83 1. Operating profits + depreciation + provisions 2. Variation net debt + dividends + purchase of own shares 3. Interest-bearing liabilities - liquid assets (not including effect of IFRS 16) 4. ROCE = Annualised operating income / Average Capital invested (N+(N-1))/2 5. ROE = Annualised net income / Average Shareholders' Funds last -1 months 6. (Interest-bearing liabilities - liquid assets) / EBITDA corresponding to last 12 months 7. Impact of IFRS 16: Net Debt / EBITDA of 2.74; Net Debt / EBITDA (H1 2025) of 1.69; 8. Variation in figures not rounded up/down
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2026 FIRST HALF INTERIM RESULTS 4 | 23 Analysis First Half 2026 vs. First Half 2025 • Turnover totalled € 869 million (down 15% on H1 2025); EBITDA stood at € 143 million (down 34% on H1 2025), resulting in an EBITDA margin of 17% (down 4.7 pp on H1 2025). First half performance was impacted by the disruption resulting from the extreme weat her conditions experienced in the 1 st quarter and the scheduled maintenance shutdowns in the 2 nd quarter, which we leveraged to accelerate our technology transition, successfully integrating new industrial innovation projects enabled by our recent capex drive. These temporary constraints affected the available volumes of Pulp and Paper and pushed up fossil fuel consumption, in particular natural gas, with a direct impact on costs, due to both increased consumption and higher prices, and to the need to purchase additional CO₂ licenses; • Net income totalled € 49 million (down 42% on H1 2025); • At 30 June 2026, net debt stood at € 693 million (excluding the effect of IFRS16), down by € 10.4 million from December. The Net Debt / EBITDA ratio stood at 2.29x, due to the lower EBITDA in the period; • In June, Navigator was distinguished by CDP with a score of ”A” in its Supplier Engagement Assessment (SEA). This top score is awarded to companies which efficiently integrate climate issues in supplier chain management, from active supplier engagement to the monitoring and setting of targets for cutting Scope 3 emissions. LEADING INDICATORS H1 H1 Change (8) Million euros 2026 2025 H1 26/ H1 25 Total Sales 868.6 1 019.0 -14.8% EBITDA (1) 143.4 216.3 -33.7% Operating Profits (EBIT) 58.8 137.3 -57.2% Financial Results - 12.6 - 14.0 -9.9% Net Earnings 49.1 85.2 -42.3% Cash Flow 133.8 164.2 - 30.5 Free Cash Flow (2) 10.4 41.6 - 31.2 Capex 127.3 93.6 33.7 Net Debt (3) 693.2 675.7 17.5 0.0 EBITDA/Sales 16.5% 21.2% -4.7 pp ROCE (4) 5.6% 13.7% -8.1 pp ROE (5) 7.0% 12.6% -5.6 pp Equity Ratio 41.3% 41.5% -0.2 pp Net Debt/EBITDA (6)(7) 2.29 1.46 0.83 1. Operating profits + depreciation + provisions 2. Variation net debt + dividends + purchase of own shares 3. Interest-bearing liabilities - liquid assets (not including effect of IFRS 16) 4. ROCE = Annualised operating income / Average Capital invested (N+(N-1))/2 5. ROE = Annualised net income / Average Shareholders' Funds last -1 months 6. (Interest-bearing liabilities - liquid assets) / EBITDA corresponding to last 12 months 7. Impact of IFRS 16: Net Debt / EBITDA of 2.74; Net Debt / EBITDA (H1 2025) of 1.69; 8. Variation in figures not rounded up/down
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2026 FIRST HALF INTERIM RESULTS 5 | 23 ANALYSIS OF RESULTS (1st Half 2026 vs. 1st Half 2025) The diversification strategy we have been implementing continues to bring in strong and consistent results, with the Tissue and Packaging segments already accounting for 25% and 6% of turnover, respectively. Energy sales have declined in importance to the group at the same time as generation for internal consumption has risen, making Navigator more competitive in its power purchases. We opened 2025 with capacity of 239 MW in renewable cogeneration and biomass power stations. Three cogeneration facilities switched to supplying internal consumption during 2025, and the others are planned to follow suit in 2029 and 2030, meaning that our capacity for energy sales will be gradually reduced, eventually dropping to 25 MW by the end of 2034. There has therefore been a structural reduction in the contribution made by these sales to turnover , and this resulted in the decision to incorporate the Energy segment into the Pulp segment, reflecting the high level of operational and strategic interdependence, and also the close business match between the two segments. The Printing and Writing paper industry Apparent global demand for Printing and Writing paper was down by 0.8%, YTD April, with UWF again the most resilient grade, having edged up by 0.4%, in contrast to a reduction of 2.3% in demand for coated papers (Coated Woodfree – CWF). Demand for paper produced from mechanical pulp (coated and uncoated) dropped by 3.4%. Global Printing & Writing Demand 2026 (Mt) Source: PPPC, YtD April Paper, 57% (vs. 57%) Tissue, 25% (vs. 25%) Pulp , 12% (vs. 14%) Packaging, 6% (vs. 4%) Turnover €869M 23.0 Mt 15.0 Mt 4.3 Mt 1.8 Mt 1.9 Mt P&W UWF CWF UME CME YoY (%) -0.8% 0.4% -2.3% -4.4% -2.4%
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2026 FIRST HALF INTERIM RESULTS 6 | 23 In Europe, apparent demand for uncoated printing and writing paper (UWF) was down by 2% YoY up to June, reflecting a reduction of the same magnitude in market deliveries from European manufacturers. Even so, stocks at producers remained below the levels re corded in the same period in 2025 and the historical average, whilst order books showed an improvement on both corresponding benchmarks. Another factor here is the retirement of capacity due to a production closure announced by a leading manufacturer in December 2025, with an estimated annual impact of approximately 185 thousand tons of UWF. In the United States, apparent consumption contracted more sharply, down 7% YoY to May. This drop is thought to owe more to supply-side restrictions, than to a real fall in actual consumption. This apparent downturn can be explained by the fact that a major US manufacturer brought forward its maintenance shutdown, prompting it to build up stocks in advance, and by the smaller volume of imports. Some of the volume imported in 2025 will likely have been recorded in that period as apparent consumption, although it was subsequently consumed gradually, which tends to distort the reading of recent developments. The retirement of further annual UWF capacity of approximately 320 thousand tons was announced during the second quarter, to be added to the 350 thousand tons of annual capacity retired in August 2025. In the first half of the year, the operating rate (OR) in the European UWF industry (measured as output as a proportion of rated capacity) stood at 86%, 1pp higher than in the same period in 2025. Navigator recorded an operating rate of 90%, 4pp above the industry average and 1pp lower than in the 1 st half of 2025, reflecting the recovery in production activity in the 2nd quarter, after the operational constraints caused by the adverse weather conditions at the start of the year. The benchmark index for office paper prices in Europe - PIX A4 B-copy – stood at 938 €/t at the end of June (vs. 926 €/t at the end of March). Since the start of the year, the index has edged up by around 1%. Over the course of the first half, Navigator announced and applied three price hikes in Europe, contributing to growth in prices from December to June of 5% in Europe, 8% in OVS, 2% in the United States, and 10% overall in UWF. The competitive environment held down the increase in the market index to just 1% (as compared to 5% for Navigator). The price of Navigator’s budget range of cut -size was up by 12% in June in relation to December; this is the most representative product in the European market, but only a minor component in our mix. The UWF market indexes remain robust, event after the downwards adjustments, especially in 2025, closing the first half at historically high levels (up 88€/t; 10% above the average recorded in 2016-2020). This meant that Navigator’s average UWF prices remained on an upward trajectory during the first half, and average prices in June were up 87 euros on those recorded in December, an increase of close to 10%. Performance was strongest in the premium cut-size segment in Europe, where prices were 30% higher than the market index. This all-time high in prices reflects our brand’s strength and excellent positioning in European markets. Paper and Packaging sales totalled 602 thousand tons in the first half. Significantly, we ended the half with stocks at historically low levels for the time of year, 18% below the average for the past 12 years. Growth and strong performance in Tissue business The Tissue segment continues globally on an trajectory of growth, demonstrating resilience in a tougher economic and market environment. Up to April this year (the most recent data available), global demand was up by 1.6% on the same period in 2025. In Europe, the segment recorded a slight contract ion (-0.4%). However, countries like Italy (up 1.5%) and the United Kingdom (up 2.7%) recorded robust growth, pointing to the existence of distinct dynamics in different geographical regions and the persistence of positive trends in several European markets. In the first half of 2026, Navigator's Tissue sales (finished products and reels) totalled 106 thousand tons. Performance in the first half was hampered by tougher competition in the United Kingdom and our focus on
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2026 FIRST HALF INTERIM RESULTS 7 | 23 managing margins, at a time when a project is under way to transform our industrial base in the country with a view to boosting operational efficiency, by streamlining locations, assets and costs, and also discontinuing supplies to unprofitable clients. This project is due for completion by the end of the first half of next year. The Tissue segment combines two operations based on distinct models: the Iberian operation is integrated, entailing both paper production (in Aveiro it even includes pulp 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. This means that the operating margin for our business in the UK is structurally lower as the company is engaged exclusively i n converting, which brings down the Group’s overall margin by approximately 1.4 pp. It was with the aim of mitigating this differential in margins and optimising the profitability of this operation that we have gone ahead with the capex project for a new machine, due to start up in 2028. Sales in Tissue business outside Portugal accounted for 80% of the sales volume in the 1 st half of 2026 (vs. 54% in 2022, prior to integration of Tissue Ejea and Tissue UK). The Spanish market took the largest share, with 32% of sales, followed by England, with 31%, and France, which accounted for 15% of sales. Acquisitions in Spain (2023) and the United Kingdom (2024) have enabled us to balance our geographical mix, bringing greater resilience to our business, which has focused essentially on finished products (which accounted for 99% of total sales, with reels on just 1%). In terms of client segment stratification, At Home or Consumer (retail) business has grown in importance, currently accounting for around 84% of sales, whilst the Away -from- home segment (wholesalers - Horeca channel and offices) accounts for the remaining 16%. Tissue Sales (vs. H1 2025) Navigator has succeeded in consolidating its differentiation strategy in the Iberian tissue market with the launch of a new product range under the Don Limpio brand, manufactured and marketed under license from P&G (Procter & Gamble). This is a further instance of the Group investing in more highly differentiated premium value propositions and in greater proximity to its end consumers. Developed for daily use in the home, the new line combines performance, versatility and efficiency. The range will be launched gradually across the entire Spanish market over the months ahead. Similarly, for the French market, Finished Product 99% (vs. 98%) Reels 1% (vs. 2%) Type At Home 84% (vs. 83%) Away-from-Home 16% (vs. 17%) Segment Spain 32% (vs. 29%) UK 31% (vs. 36%) Portugal 20% (vs. 19%) France 15% (vs. 14%) Other 2% (vs. 2%) Geography
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2026 FIRST HALF INTERIM RESULTS 8 | 23 a range is being finalised under the Mr Propre brand (P&G), for subsequent launch in the country in the coming months. The line is being developed on the basis of Navigator’s founding values: operational excellence, premium quality, innovation and sustainability. The products have been developed using sustainably sourced raw materials and developed to deliver maximum strength and absorption capacity. During the first half, the final stages were reached in the development of innovations in the toilet paper category, due for launch in the quarters ahead. These involve technologies for odour mitigation and long -lasting ambient aromatisation without using microplastics, as well as hypoallergenic properties for several products in this category. These various developments boost the Company’s positioning as an innovative player in the Tissue segment, adding perceived value to the end consumer and differentiating its premium offering in an increasing competitive market. Packaging - From Fossil to Forest – investment in sustainability, innovation and change Navigator’s turnover from Packaging stood at € 53 million in the first half, on the strength of growth in sales in tons of 50%, thanks to increased penetration in lightweight (low grammage) segments. Average prices in Navigator's Packaging business have also risen, with average prices in June up by close to 13% from those recorded in December. The fastest growing line is FLEX - Flexible Packaging. The top performers were low grammage food and non-food packaging solutions, which are strategic priority areas for expanding our business, together with release liners for feminine hygiene and personal care markets, made exclusively from eucalyptus fibre. These strategic segments benefit in particular from the use of lightweight papers, where Eucalyptus globulus offers significant competitive advantages, both economically and technically. Attention is drawn to the growth of sales in the BOX Liner segment - virgin fibre products used to face corrugated cardboard. These products are intended for value added applications, such as food contact packaging (e.g. pizza boxes), where the use of recycled fibres, unsuitable for food use, is prohibited in many European countries, but not in Portugal, for reasons of food hygiene and safety, and boxes for perfumery products and e-commerce, where high quality printing is required. Together, these application s already accounted for 11% of gKRAFT sales in the 1st half. For several years, since before launching its Packaging operation, Navigator has developed close contacts and regular sales with clients in this segment. The aim is to expand its knowledge of a market which the Company has increasingly identified as a major opportunity, where Eucalyptus globulus fibre presents undeniable competitive advantages and where the use of recycled fibres (testliner) is not recommended for public health reasons. Navigator’s Packaging business performed consistently over the first half, with a gradual increase in sales. At present, 70% of our sales are in Europe and the remaining 30% on overseas markets – the Americas and MENA (Middle East and North Africa). Navigator has accordingly continued to broaden its customer base in an operation 100% based on its own brand - gKraft™. Our packaging paper offering is based on three gKRAFT™ segments: BAG, FLEX and BOX. The innovative introduction of the properties of eucalyptus fibre in these products has been crucial in securing broad acceptance and recognition in the market.
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2026 FIRST HALF INTERIM RESULTS 9 | 23 Pulp Market After facing strong pressure in 2025, visible in a sharp drop in pulp prices in China from April onwards, which spread to Europe, the downward cycle in pulp prices showed the first signs of a turnaround in August that year, and this gained traction in the final months of the year, with strong growth in prices in the first half of 2026. The benchmark index for hardwood pulp, PIX BHKP in dollars, closed the first half at 1,409 USD/t in Europe, up by approximately 27% from the first week of 2026. In China, the benchmark price ended the half at 605 USD/t, reflecting a more moderate increase of 7% over the same period. During the 1st half, the persistence of downtimes and greater restrictions on supply helped sustain the recovery in pulp prices. This scenario was significantly influenced by one of the leading Indonesian manufacturers closing down capacity of approximately 150 million tons in the first quarter alone, in response to the cancellation of forestry licenses by the country’s Government, prompted by allegations of deforestation. In addition, the supply of BHKP (Bleached Hardwood Kraft Pulp) was limited by the strategic decision by certain swing producers to convert their production lines to dissolving pulp, in particular in Latin America. In Europe, the market dynamic was influenced by stock levels at ports down from those recorded in 2025 and lower than the average for the past five years. These low inventory levels, combined with delays in the embarkation of goods destined for the region, offered producers headroom to implement successive price hikes over the first half. At the same time, tensions in world trade, related to the application of customs tariffs and geopolitical uncertainty, have resulted in continued volatility in the global pulp market. We may point, in particular, to the impact of the conflict in the Middle East, which has pushed up production costs, including the costs of energy, chemicals and logistics. This situation has exerted inflationary pressure on final pulp prices. MOLDED FIBRE PRODUCTS (Food packaging and food service segments) CORRUGATED & SOLID BOARD (Boxes and trays for agriculture, industry, retail, take-away and e- commerce) BAGS (Retail, food & filling industries, etc.) FLEXIBLE PACKAGING (Packs, pouches, food take-away, envelopes, release liners, etc.)
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2026 FIRST HALF INTERIM RESULTS 10 | 23 Global demand for market hardwood pulp, YTD May, fell back by 2% in relation to the same period in 2025. China recorded an increase of 2% and Europe a marginal decline of 0.6%, in line with shrinking consumption of UWF paper and Tissue. Significantly, eucalyptus fibre - in which our Cacia mill was the global pioneer, first using the kraft process to develop market pulp in 1956 - has continued to gain ground in relation to long fibre, due to the latter being less competitive and to the tec hnological advances achieved both in papermaking machinery and in the quality of eucalyptus hardwood fibre - for which Navigator is the global benchmark. Global Pulp Demand (Mt) -2% -2% -2% 3% 2% -1% -3% -1% 0% Source: PPPC, May (2026 vs. 2025) Navigator's pulp sales totalled 111 thousand tons in the first half, reflecting the fact that less pulp was available for the market in the first two months of year as a result of operational and logistical constraints already mentioned, as well as the ann ual shutdowns of the Setúbal and Aveiro pulp mills in the 2 nd quarter. Turnover in the Pulp 47% 47% 77% 78% 28.3 27.7 17.3 16.9 13.4 13.1 2025 2026 2025 2026 2025 2026 BCP HW Euca % EUCA 11.2 11.6 7.4 7.5 5.7 5.6 2025 2026 2025 2026 2025 2026 BCP HW Euca China 6.6 6.5 4.0 3.9 3.3 3.3 2025 2026 2025 2026 2025 2026 BCP HW Euca Europe
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2026 FIRST HALF INTERIM RESULTS 11 | 23 segment (including Energy) was down YoY, on a comparable basis, due to lower pulp prices and the reduction in energy sales, as a result of some units switching to generation for internal consumption. Strategic transformation builds for the future, with temporary impact on EBITDA Performance over the period was influenced in part by non -recurrent operational factors, related to the extreme weather experienced in Portugal, which occasionally hampered access to water and energy in the 1st quarter, and to the longer-than-usual scheduled maintenance shutdowns in the 2 nd quarter. The scheduled shutdowns offered an opportunity to integrate new industrial innovation projects resulting from the recent strategic investments, such as the new oxygen delignification system at the Setúbal Industrial Complex. At the same time, Navigator is nearing the end of a strategic capex programme, driven by projects under the aegis of the Recovery and Resilience Plan (RRP). Implementing these large -scale, technically sophisticated initiatives presupposes an operational and technological adjustment curve. As in any industrial modernisation process, this period of transition and the stabilisation testing for the new equipment has been temporarily reflected in output figures, a non -recurrent scenario which has coincided with volatile natural gas prices and higher costs for CO₂ licences. However, these capex projects are laying the essential foundations for ensuring substantial efficiency gains, reduced dependence on resources and improved medium - and long -term resilience. Navigator is implementing a strategic vision of the future, ensuring a sound and sustainable basis for its global operations in the long term. Alongside this, the Company’s ongoing efficiency and optimisation plan has again pointed to our ability to achieve results, bringing concrete and measurable benefits. The gains achieved have made it possible to offset a significant portion of the additional costs of logistics, raw materials and maintenance, helping to protect returns in a context of severe inflationary pressure. Unit production costs improved in relation to the same period last year, in the Paper, Packaging and Tissue segments (in both operations, Iberia and the United Kingdom). Based on a culture of continuous improvement, the Company has pressed ahead with implementing initiatives for optimising processes, for industrial innovation and product engineering , with a direct impact on operational efficiency and structural reduction of the cost base. This approach is making our business more resilient and our operations more competitive, thus boosting our capacity to generate value on a sustainable basis. In this context, Navigator recorded EBITDA of € 143 million in the 1 st half (vs. € 216 million in the first half of 2025), with an EBITDA margin of 17% (down 4.7 pp year-on-year). Financial Results The company recorded a financial loss of € -12.6 million in the first half (vs. € -14.0 million in the same period in 2025). This year-on-year variation can be explained essentially by interest income of € 2.1 million and an increase of € 0.7 million in the net cost of financing (€ -10.2 million in 2026, compared to € -9.5 million 2025).
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2026 FIRST HALF INTERIM RESULTS 12 | 23 The increased loss from financing operations was the result of the higher cost of borrowing in relation to the same period in 2025, combined with lower returns on short term investments, due to the reduction in the funds invested. Average debt was down by € 34 million (€ 837 million vs. € 871 million), and the average cost of borrowing was up 50 bps to 2.9%, in relation to the same period in 2025. This additional cost was due essentially to a smaller proportion of fixed rate borrowing, which even so still represents 60% of Navigator's total debt (vs. 40% of floating rate borrowing), and also to the impact of the new financing operations, contracted in an environment or rising reference rates. It should be noted that the new financing operations have extended the average maturity of debt from 4.3 years (June 2025) to 5.2 years (June 2026). Pre-tax profits totalled € 46 million (vs. € 123 million in the same period in 2025). Corporation tax for the period showed a surplus of €3 million, reflecting the reversal of tax provisions, as a result of administrative and court decisions, the closure of inspection procedures and the reduction in Pre-Tax Profits (PTP). Net income accordingly stood at € 49 million (vs. € 85 million in the same period in 2025). Free cash flow generation of €10 million Free cash flow generation in the 1st half stood at € 10 million (vs. € 42 million in the same period in 2025). As was to be expected, cash flow generation was brought down significantly by the level of capital expenditure in the period, which stood at € 127 million. Outlay on projects under the PPR has peaked and is now reaching completion. Eligible investments under the RRP benefit from investment support of more than € 100 million. To date, Navigator has received RRP incentives totalling approximately € 88 million, of which € 10 million in the first half of 2026. Sustainable Financial Management At 30 June, net debt stood at € 693.2 million, down by € 10 million from December and up by € 17 million from H1 2025. The Net Debt/EBITDA ratio stood at 2.29x, again underlining the financial strength enjoyed by the Group, with an average debt maturity of 5.2 years. Navigator’s long term facilities, available but unused, total € 363 million, out of a total of € 403 in facilities available and unused. Average debt maturity therefore remains appropriate, with rationally staggered repayments, 95% of total debt tied to sustainability and 60% of total debt issued on a fixed rate basis, directly or using interest rate hedges.
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2026 FIRST HALF INTERIM RESULTS 13 | 23 Liquidity = Cash 179 M€ + Long Term Committed Unused Credit Facilities 413 M€ Within the framework of a financial policy built on firm foundations, we have extended debt maturity, securing greater flexibility in mobilisation and, at the same time, linking borrowing costs to the Company’s sustainable development criteria on a broader basis. In the 1st quarter of 2026, Navigator contracted a loan of € 40 million from BEI, the second tranche of a total loan of € 80 million. The first tranche, also of € 40 million, had been contracted in the 3 rd quarter of 2025. This loan is intended to finance a series of projects geared to accelerating Navigator's decarbonisation plan. Both tranches have yet to be issued. In the 2nd quarter of 2026, Navigator issued Sustainability-Linked bonds, “Navigator 2026-2033 SLB”, with a value of € 50 million, maturing in seven years. In addition, the company contracted in the period a total of € 135 million - as yet unused - in Sustainability-Linked commercial paper, all with a placement guarantee and total maturities of between 5 and 7 years, A Sustainability- Linked commercial paper facility of € 35 million was also contracted and used. Debt repayments totalling € 55 million were made over the period. Capital expenditure of € 127 million In the 1 st half, capital expenditure totalled € 127 million (compared to € 94 million in H1 2024), of which approximately € 72 million (57% of total capex) corresponds to value -creating environmental or sustainability investment. This sum includes mostly projects aimed at decarbonisation, environmental performance, maintaining production capacity and modernising plant with a view to efficiency gains. It also includes structural and safety projects with a significant impact on the future reduction of variable costs. Execution of all the projects under the Recovery and Debt Profile (in million euros) 2.9% Average interest rate (June 2026) 60% Fixed interest rate 95% Of total debt issued tied to ESG targets Total debt: 873 M€ Average Maturity: 5.2 years 592 27 20 23 68 66 306 242 122 Liquidity dec. 26 dec. 27 dec. 28 dec. 29 dec. 30 dec. 31 dec. 32 33 - 37 Sustainable
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2026 FIRST HALF INTERIM RESULTS 14 | 23 Resilience Plan (RRP) is nearing completion, strictly honouring the commitments made to the Portuguese authorities. In line with this modernisation drive, the new oxygen delignification system started up at the Setúbal Industrial Complex in the 2 nd quarter. This project represents capital outlay of more than € 40 million and will bring a significant improvement to operational performance at the existing pulp mill, permitting a reduction in consumption of chemicals in the bleaching process and improved effluent quality. Another important project is the conversion of the PM3 paper machine in Setúbal, equipping it with cutting edge technology and thereby enhancing operational flexibility, boosting energy efficiency and improving the quality of the end product. Conversion of the machine is geared to producing high-performance, low grammage paper suited to flexible packaging applications and designed to respond to growing demands from international markets in relation to sustainability, functionality and performance. As part of the strategy for growth, a final decision was taken in early 2026 to invest in a new Tissue machine with annual production capacity of 70,000 tons, to be located at the Aveiro industrial complex. This new capacity is designed to supply the operation in the United Kingdom, where the converting unit, currently without its own reels production operation, has capacity for processing more than 100,000 tons a year. This investment in the new Tissue machine, planned to start up in 2028, will total aroun d € 115 million (€ 48 million in 2026, € 53 million in 2027 and € 14 million in 2028), and will benefit from support under the Portugal 2030 programme.
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2026 FIRST HALF INTERIM RESULTS 15 | 23 From Forest to the Future Commitment to Sustainability: Transformation, Responsibility and Continuous Improvement Sustainability is a strategic priority for the Company, reflected in, among other things, responsible management of natural resources, continuous improvement of processes and the constant search for solutions that make for operational efficiency and a smaller environmental footprint. This commitment can be seen in an approach based on innovation, prevention and daily engagement with the workforce, helping to create long term sustainable value. Continuous monitoring of production processes and careful tracking of environmental performance enable us to ensure high operational standards and to promote ever more efficient use of resources. The Company works to anticipate potential deviations, assign ing priority to continuous improvement which helps minimise negative impacts and improve the reliability of its operations. This commitment is put into practice in capex projects that make our industrial units more environmentally efficient. One example is the recent installation of a new biomass-fuelled lime kiln at the Figueira da Foz Industrial Complex, an emerging technology that contributes to more efficient management of the production process, facilitates compliance with stricter environmental parameters and supports the decarbonisation strategy, by using biomass as the main fuel. The lime kilns at the Setúbal and Aveiro industrial complexes have also been converted to use biomass as the main fuel, and a biomass boiler has been installed at the industrial complex in Vila Velha de Ródão. Together, these projects have contributed to a significant reduction in emissions of fossil CO2, substituting biomass for natural gas and fuel oil. We may also point to projects for generating renewable power for internal consumption, including 43 MW in photovoltaic solar capacity and an additional 18 MW through two new turbogenerators. These projects add to our capacity for renewable cogeneration, bo osting the energy efficiency of operations and contributing to improved energy autonomy in our industrial units. The Company also invests in advanced monitoring and operational control systems which enable it to track the performance of equipment in real time and anticipate opportunities for improvement. The use of technological solutions for optimising combustion in industrial plants is an example of how innovation has been placed at the service of energy and environmental efficiency. Protection of water resources has also played a central role in this strategy. Rigorous management of effluent treatment systems, supported by permanent monitoring and the work of specialist teams, ensure a swift and effective response, promoting high standards of environmental performance and responsible water use throughout the production process. The new oxygen delignification system, mentioned above, started up at the end of the 2 nd quarter at the Setúbal Industrial Complex . This initiative is part of the company plan for environmental improvements, responding to water efficiency targets, significantly improving the quality of effluents and contributing to continuous improvement of product quality, while at the same time mitigating the operational risks associated with biological treatment in the WWTP. This capital project has added to Navigator's ambitions in the field of industrial modernisation and incorporation of innovative technologies, aligning production efficiency wi th environmental efficiency. The success of this approach can be attributed to the coordinated efforts of operational, technical and environmental departments. Knowledge sharing, ongoing employee training and close coordination between teams
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2026 FIRST HALF INTERIM RESULTS 16 | 23 enables the company to identify challenges, implement solutions and promote a culture of environmental responsibility across the whole organisation. More than just complying with requirements, the Company has embraced sustainability as a long -term commitment, seeking to generate economic, environmental and social value in a balanced way. By investing in technology, continuous improvement of processes and adoption of increasingly sustainable practices, the Company has reaffirmed its contribution to a more efficient and competitive industry, ready for the challenges of the future. 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 low -risk company for investors, maintaining its status as a “2025 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 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, securing its “Leadership” status and consequently a place on the prestigious “A List” for Climate and for Forests. This assessment by CDP (Carbon Disclosure Project) provides international recognition of Navigator’s commitment and good practices in relation to management of climate and deforestation risks. Only 4% of around 20 thousand companies assessed by CDP each year are included on the “A List” (meaning they achieved the top score on at least one of the questionnaires - Navigator achieved this score on two). Navigator also achieved a top score of “A” - “Leadership” level - in its 2025 Supplier Engagement Assessment by CDP. This is designed to distinguish companies for outstanding supply chain engagement on sustainability issues, in particular on fighting clima te change. It points to the Company’s ability to mobilise suppliers, producers and partners, pursuing climate action beyond its own direct operations. This is all the more relevant considering the size and complexity of Navigator's supply chain, which includes close to 8 thousand suppliers.
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2026 FIRST HALF INTERIM RESULTS 17 | 23 OUTLOOK The prospects for the 2 nd half of 2026 remain influenced by a challenging international situation, featuring high levels of economic uncertainty and increasing geopolitical volatility. The persistence of economic tensions between economic blocks, increased protectionist measures a nd worsening conflicts can all be expected to continue undermining the dynamic of international trade, setting off sudden fluctuations in commodity prices and significant disruption to supply chains. This highly unstable scenario, amplified by unpredictabl e swings on the foreign exchanges, has tended to hold back business investment and to substantially slow the pace of global economic growth. After the recovery in prices in the 1st half, the pulp market has started in July to show signs of adjustment in China, reflecting a context of more moderate demand and growing availability of domestic output. Gradual stabilisation is expected, with prices rallying moderately towards the end of the year. In Europe, analysts’ projections released in June point to prices rising in the 3rd quarter. However, the recent inversion of trends in China and the widening of the price differential between regions, currently favourable to the European market, could limit the potential for fulfilment of these expectations. Even so, the outlook for 202 6 remains positive overall, with average prices in 2026 higher than in 2025, in particular for hardwood fibre in Europe and China. Analysts anticipate that global demand for hardwood pulp will drop by 2% over 2026. Europe looks set to be the most stable region, with practically no change, whilst demand in China is expected to shrink by just 1.5%. Unlike 2025, this year is not expected to bring significant increases in capacity; the next major project in Indonesia involves two lines each with capacity of 1.4 Mt, of which around half will be destined for the market, where the effects will only be fel t in 2027. Another project for which the start -up has been announced by the end of 2027 will be a new mill in Brazil with 3.5 Mt, where estimates suggest that the impact will only be felt on the market in 2028. Analysts accordingly expect prices to be higher in 2027 than in 2026. In the Printing and Writing Paper segment, Navigator responded to full order books and the pressure of paper production costs by announcing a third price rise in Europe, with effect as from June. On the Overseas markets, the Company announced a price increase in April in Latin America, of between 3% and 5%, in force since June. The second increase in the United States will have an impact in July. In this setting, we anticipate that Navigator's average prices will continue to progress favourably in the 3rd quarter, overcoming the constraints which held back full implementation of price hikes in the first half of the year. It should be noted that the company ended the first half with historically low stock levels (tons), 18% below the average for the past 12 years, reflecting the fact that all output was successfully sold over the period. As a result, the start of the 3 rd quarter will be constrained by the absence of any surplus capacity to leverage sales through inventories. The global environment remains highly challenging, constrained by the structural tendency for a decline in consumption, economic stagnation in the main geographical regions, offset in part by the recent closures recorded in the European and North American markets. In the United States, on the heels of a reduction of 350 thousand tons in the annual capacity of a major player (8% of US capacity), another UWF machine closure has been announced in early 2026, further cutting North American UWF capacity by appro ximately 320 thousand tons, the impact of which will be felt as from the 2 nd half. In addition, the 4 th quarter will bring 5 weeks of downtime at a major US mill, removing close to 80 thousand tons of UWF from the market. Considering the capacity cuts described, we estimate that North America has a structural shortfall of 1,200 thousand tons a year (25% of consumption). No further capacity reductions have yet been announced for 2026, but the operating environment remains challenging for several industrial units, which continue to face significant pressure on their margins.
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2026 FIRST HALF INTERIM RESULTS 18 | 23 Packaging business continues to enjoy lively demand, enabling it to consolidate its market position, grow its client base and sales and increase its prices. Navigator also announced a price increase of between 5% and 10% in the Packaging segment, with effect as from April, following this up with a further increase of at least 30 euros/ton, with effect from June; the impact of this will be felt in the third quarter, coinciding with the start-up of the PM3 conversion. In the Tissue segment, the prospects for 2026 remain positive overall; demand is anticipated to rise by around 0.8% in Europe and 1.6% worldwide. Albeit at a more moderate pace than in previous years, this direction of travel confirms the structural soundness of the segment and points to a continuation of sustained growth. The Group continues to make the most of the partnerships, synergies and economies of scale inherent in business growth, in particular with the acquisition of Navigator Tissue Ejea in 2023 and that of Navigator Tissue UK in 2024. Navigator has also gone ahead with announcing a price increase in the Tissue segment of between 5 and 7%, applicable to products dispatched as from May, in all markets where the group operates, which will a lso have an impact in the 3rd quarter. With a continued focus on sustainable value creation, Navigator is pressing ahead with a series of efficiency and operational optimisation programmes in all business areas, in order to make the Company more competitive and mitigate the impact of cost inflation. Based on initiatives geared to product engineering, continuous improvement, industrial innovation and adapting structures to today’s business environment, these programmes have enabled us to generate significant efficiency gains, without any impact on product quality or customer service standards. In an environment featuring economic and geopolitical volatility, as well as persistent pressure on the cost of raw materials, energy and logistics, the Company has also moved forward with a new programme to reduce variable costs. The initiatives already identified should offset half of the increase in costs expected for 2026, and are expected to generate a recurrent positive annual impact of approximately €28 million from 2027 onwards. The results achieved so far point to the Company’s capacity for spotting opportunities, taking effective action and capturing value on a consistent basis. This means we are more competitive and our operations are more resilient. The agility and flexibility of Navigator’s teams, based on integrated management of the entire value chain, combined with a sound financial position, provide the firm foundations for successful execution of the Group’s strategy. This combination further adds to the Company’s ability to face the challenges of the present whilst at the same time pressing ahead with transformation of its portfolio, preparing for the future with confidence. Lisbon, 23 July 2026
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2026 FIRST HALF INTERIM RESULTS 19 | 23 Conference Call and Webcast for Analysts and Investors Date: Tuesday, 28 July 2026 Time: 16:00 WET (Western European Time, GMT) Link to the Conference Call webcast: https://streamstudio.world-television.com/1076-1695-43566/en Link for advance registration for telephone access to Conference Call: https://grid.trustwavetechnology.com/navigator/register.html
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2026 FIRST HALF INTERIM RESULTS 20 | 23 FINANCIAL STATEMENTS The Navigator Company, S.A. Consolidated Income Statement on June 30th 2026 and 2025 Amounts in Euro 30/06/2026 30/06/2025 Revenue 868 649 921 1 019 032 130 Other operating income 45 660 253 43 075 761 Changes in the fair value of biological assets 4 588 917 2 149 237 Costs of goods sold and materials consumed (410 695 748) (457 951 103) Variation in production 23 126 023 11 117 825 External services and supplies (260 669 025) (268 176 621) Payroll costs (99 230 452) (108 308 317) Other operating expenses (28 054 711) (24 605 532) Net provisions (874 079) 3 759 582 Depreciation, amortisation and impairment losses in non-financial assets (83 740 825) (82 747 036) Operating results 58 760 274 137 345 926 Financial income 5 351 517 8 220 882 Financial expenses (17 933 211) (22 185 064) Net financial results (12 581 694) (13 964 182) Profit before tax 46 178 580 123 381 744 Income tax 2 981 951 (38 133 408) Net profit for the period 49 160 531 85 248 336 Attributable to Navigator Company's Shareholders 49 143 111 85 229 477 Attributable to non-controlling interests 17 420 18 859
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2026 FIRST HALF INTERIM RESULTS 21 | 23 The Navigator Company, S.A. Consolidated Statement of Financial Position on June 30th 2026 and on December 31st 2025 Amounts in Euro 30/06/2026 31/12/2025 ASSETS Non-current assets Goodwill 421 071 393 420 580 669 Intangible assets 132 711 964 107 637 839 Property, plant and equipment 1 512 868 986 1 462 499 503 Right-of-use assets 125 497 662 120 068 177 Biological assets 125 918 128 120 646 643 Investment properties 664 649 669 397 Others financial assets 13 418 551 9 355 504 Receivables and other non-current assets 3 149 525 1 975 387 Deferred tax assets 48 166 181 47 635 415 2 383 467 039 2 291 068 534 Current assets Inventories 320 617 092 306 285 542 Receivables and other current assets 456 064 183 420 298 809 Income tax 49 916 574 40 640 998 Cash and cash equivalents 179 386 775 130 229 469 1 005 984 624 897 454 818 Total assets 3 389 451 663 3 188 523 352 EQUITY AND LIABILITIES Capital and Reserves Share capital 500 000 000 500 000 000 Currency translation reserve 10 368 372 6 557 946 Fair value reserves 13 071 215 302 772 Legal reserve 100 000 000 100 000 000 Other reserves (6 661 035) (6 181 061) Retained earnings 735 463 253 667 391 938 Net profit for the period 49 143 111 144 667 435 Equity attributable to Navigator Company's Shareholders 1 401 384 916 1 412 739 030 Non-controlling interests 410 413 389 845 Total Equity 1 401 795 329 1 413 128 875 Non-current liabilities Interest-bearing liabilities 835 276 412 762 828 265 Lease liabilities 122 961 132 120 381 320 Deferred tax liabilities 124 878 673 120 304 424 Provisions 28 448 478 25 426 997 Payables and other current liabilities 98 909 471 110 112 440 1 210 474 166 1 139 053 446 Current liabilities Interest-bearing liabilities 37 324 949 71 030 074 Lease liabilities 11 889 781 12 148 348 Payables and other current liabilities 702 787 943 535 529 542 Income tax 25 179 495 17 633 067 777 182 168 636 341 031 Total Liabilities 1 987 656 334 1 775 394 477 Total Equity and Liabilities 3 389 451 663 3 188 523 352
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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