Gentlemen, welcome to The Navigator Company conference call and webcast for the fourth quarter and full-year results. We are joined today by the following directors: António Redondo, Fernando Araújo, Nuno Santos, João Lé, Dorival Almeida, and António Quirino Soares.

As usual, we will start with a short presentation, followed by a Q&A session. You can access the presentation through the links on our website, and you can also send your questions via the webcast platform.

António will begin by presenting the main highlights for the quarter. I will now hand over to António.

Thank you for joining us today. I'm very pleased to be here once again, and to share with you our fourth quarter and full-year results.

In the toughest market environment in decades, Navigator was able to maintain a strong market position, supported by its international footprint and increasingly diversified business model, enabling volume growth and market share gains. Portfolio transformation remains a key driver of resilience.

Vertical integration, operational flexibility, innovation, and sustainability focus continue to underpin our competitive advantage, as we'll see in today's presentation. I will begin with slide five, with an overview of the key highlights.

2025 was defined by persistent geopolitical tensions and rapidly shifting global landscape, marked by high volatility, commercial defense barriers such as tariffs, weaker consumer confidence, and very limited market visibility. In this environment, the pulp and paper sector faced particularly challenging conditions.

From April onwards, pulp prices in China declined sharply, with knock-on effects in Europe. At the same time, uncoated woodfree paper consumption fell.

Growth in tissue and packaging slowed, and in many products, operating rates reached unsustainably low levels across several regions. The industry also faced increased energy and chemical costs this year, further pressuring margins.

Navigator's strategic diversification played a key role in protecting results, with tissue and packaging accounting for 29% of the turnover, but 32% of group's EBITDA. In tissue, we continued to successfully scale up operations and capture synergies.

Turnover increased by 6% year on year, supported by the integration of Navigator Tissue UK in May 2024. Around 80% of sales are now international, with UK, Spain, and France as our core markets.

Packaging also delivered strong performance, with turnover up 8% year on year, volumes in tonnes up 11%, and paper area in square meters up 17%, reflecting the growth of the flexible packaging segment with a shift to lower grammage products. The rebuild of PM3 in Setúbal to further focus on low basis weight flexible packaging is progressing as planned.

In printing and writing, we reinforced our competitive position, with uncoated woodfree volumes up 6% year on year in a shrinking market, and market share of European deliveries increasing to 26%. Looking ahead, we start 2026 with a positive final investment decision for the new tissue capacity in Aveiro, further strengthening our growth and resilience profile.

Turning to slide six, we can clearly see the resilience of Navigator business model. A key strength of Navigator is its ability to generate strong cash flows, underpinned by our vertical integrated model and leading cost positions in pulp, uncoated woodfree paper, tissue, and flexible packaging in Europe.

Over recent years, these cash flows have been strategically reinvested to strengthen our core business and diversify our portfolio, supporting long-term value creation. Since 2019, we have invested €1.31 billion, including €241 million in M&A, and distributed a further €1.32 billion in dividends.

Our diversification strategy is clearly paying off. Recent international expansion and portfolio diversification have strengthened Navigator's results in tissue and packaging, providing more balanced and resilient earnings profile.

This robust positioning enables Navigator to consistently outperform its peers, as demonstrated once again this year, even in very challenging market conditions, underscoring its resilience and competitive edge. Strategic capex, boosted by NextGenerationEU funding and started in 2023, is phasing out in 2025 and will be fully completed by 2026.

Last year, capex totaled €210 million, with 60% classified as value-added sustainability investments, making a strong contribution to reducing future costs, while maintaining a strong financial position with net debt to EBITDA ratio at 1.87 times. I will now hand it over to my colleagues, who will walk you through the results in more detail and share some insights on how our different business areas have been doing.

Fernando will start by commenting on financial highlights. Fernando, please go ahead.

Thank you, António. Turning to slide seven, we can look at our debt maturity profile.

Over the past two years, we increased the average debt maturity to five years, maintaining a well-staggered repayment profile, and stretching the indexation of debt to sustainability indicators to 90% versus 65% in December 2024. Also, Navigator continues to enjoy ample liquidity: €390 million as of 31st of December.

At the end of 2025, 70% of the total debt issued was remunerated at a fixed rate, either directly or through interest rate hedging instruments. It should be noted that despite general rise in market rates compared to the last financing cycle, the average cost of finance at the end of December remains low, at around 2.7%, an increase of 0.3% percentage points, of 0.3 percentage points.

Turning to slide eight, we can took a closer look at the main impacts on EBITDA in a year-on-year comparison. EBITDA stood at €375 million, down 30% year on year, with an EBITDA margin of 19%.

It should also be noted that, given its size, integration of UK tissue business, converting only, brings down the group's EBITDA margin by 1.2 percentage points, which, without this additional operation, would have been 20.3%. The downward trend in uncoated woodfree and pulp sales price was pressured by falling benchmark index.

Change in our product and geographical mix also influenced our average sales price, as António Quirino will explain further. On a positive note, packaging and tissue segments saw a significant increase in sales volumes.

In 2025, cash costs were impacted by a combination of simultaneously and longer than normal planned and unplanned maintenance stoppage in our pulp mills: Figueira da Foz, Aveiro, and Setúbal. This includes a temporary shutdown following a small fire in the bleaching area at Setúbal in July.

There were no injuries, and operations were fully restored within two or three weeks. This maintenance stoppage reduced energy generation from biomass during the period, and led to higher natural gas consumption.

Cash costs were also affected by the US customs tariffs and the resulting increase in antidumping duties. Despite these headwinds, cash costs ended the year below the level at the start of the year.

Finally, the volatility of the EBITDA was mitigated by our financial risk management strategy, including the hedging for energy price and foreign exchange, which offset negative impact of negative evolution of the US dollar and the British pound. However, the energy hedging strategy implemented in 2025 delivered limited effectiveness, particularly in the first quarter, when its impact was most critical.

João will speak about the key projects focused on operational efficiency and portfolio diversification. João, please go ahead.

Thank you, Fernando. Turning to slide nine, please.

Navigator strategy is built on a responsible business model, grounded in the belief that sustainability without performance has no impact, and performance without sustainability has no future. This balance underpins responsibility, long-term growth, and value creation.

Drawing on decades of experience in sustainable forest management, supported by science and technology, we have developed sector-leading industrial assets and advanced R&D capabilities. Our R&D efforts span the full value chain: from genetic improvement, pests and disease control, soil and climate characterization to support forestry management, industrial operations consumption efficiency, and product development.

At the same time, we continue to explore new long-term opportunities for product and business diversification, focused on adding value to Portuguese eucalyptus forests through new bio-products, biomaterials, and biochemicals. Despite challenging market conditions, we continue to invest in diversification and sustainable transformation.

In 2025, we completed several key investments across all segments to strengthen business resilience. These include the new chemical recovery boiler at Setúbal, which will significantly enhance the mill's operational and environmental performance.

It will reduce malodorous emissions and marks a key milestone in our industrial decarbonization journey, cut carbon emissions by around 136,000 tonnes of CO2 per year, while enabling the capture and the incineration of non-condensable gases. 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 the effluent from this industrial site.

AI-driven control systems reduce process variability by around 20% and lower bleaching chemical consumption by 50... 5%.

The reduction in variability reflects, for instance, an internally developed advanced process control applied to PCC incorporation and chemical savings resulting from APC projects implemented in pulp bleaching. We also scaled up Navigator Hub, which generated €300 million in online sales in 2025, and is now serving all business units, strengthening both our commercial reach and digital resilience.

As already mentioned by António, the evolution of our portfolio is a key pillar of our resilient business model. The tissue segment illustrates this shift, growing from 5% per cent to around 25% of revenues over the past decade through acquisitions and organic growth, supported by in-house R&D.

Alongside this development, sustainable packaging solutions, designed and scaled up entirely on the basis of internal expertise, R&D, and technology, already account for 4% of sales, an important milestone in a fast-growing segment, achieved purely by repurposing existing uncoated woodfree assets without any significant investment. Of course, this enhances the operational flexibility of our assets, preserving the ability to produce uncoated woodfree grades, while also enabling the production of a broad range of packaging grades.

In 2025, we approved the rebuild of PM3 at Setúbal to produce low-grammage flexible packaging, equipping the machine with state-of-the-art technology to enhance flexibility, energy efficiency, and product quality, and to meet growing international demand. Our diversification has reduced our dependence on uncoated woodfree paper, which declined from 75% of revenues in 2017 to around 57% in 2025, not due to lower turnover, but to growth in new segments, while uncoated woodfree revenues remained stable at €1.1, €1.2 billion.

Uncoated woodfree remains a resilient core business, supported by highly competitive assets, world-class quality, and strong mill brands. This evolution reflects a disciplined, integrated strategy focused on long-term value creation, innovation, and responsible resource management.

I will now hand over to my colleagues for a brief commentary on each of the business segments, starting with Quirino with a comment on pulp and paper prices. Quirino, please?

Thank you, João. Good afternoon.

Moving to slide 11, we have the evolution of pulp and paper prices. Between April and August, the pulp price index for pulp in China, BHKP, sharply decreased, largely driven by overcapacity in the pulp and paper sector.

This overcapacity resulted from a sudden and expressive increase in integrated pulp capacity in China, alongside with local wood available at competitive prices, lower than imported wood. This occurred amid the current situation of severe tensions in international trade and a reduction in demand in several paper segments across the different world regions.

Although this downward cycle has been shorter than previous ones, it started from a significantly lower peak, reflecting a structurally weaker base than in previous cycles. A recovery gained momentum in the fourth quarter, with a clear improvement in pricing in China.

Even so, 2025 was the weakest year for pulp pricing in nominal terms since 2016, excluding 2020. Average prices in China fell to around $540 per tonne on average, which is down 16% year on year.

In real terms, and from the perspective of both Iberian and Brazilian producers, prices were even weaker than 2016 and 2020, once inflation and exchange rate effects are taken into account, transforming 2025 real prices as the worst prices in decades. In Europe, prices followed a volatile path.

After falling to $1,000 per tonne at the start of the year, benchmarks recovered in the spring, weakened again through the summer, and then rallied in the fourth quarter. The hardwood pulp benchmark ended the year at $1,100 per tonne, reflecting this late-year recovery, although average prices remained 12% below 2024 levels.

In 2025, the European benchmark for office paper, PIX A4 B-copy, averaged €1,003 per tonne, which is down 9% year on year. This decline was more moderate than in hardwood pulp, where European benchmarks fell by 15%.

Importantly, despite these adjustments, uncoated woodfree price levels remain structurally strong, still around €149 per tonne, or 17%, above 2016 to 2019 average. As Fernando mentioned, Navigator's average sales prices in Europe broadly followed benchmark trends, supported by two complementary strategies.

On the one hand, we increased penetration in both economic and standard segments to quickly capture additional volumes, which weighed on the average prices, given our traditional premium-rich product mix. Simultaneously, we reinforced pricing discipline on higher-value-added products, particularly under our flagship brands, which achieved an 8 percentage point increase in price premium during the year of 2025.

In international markets, paper prices were affected by both the weaker dollar and, more significantly, by the sharp decline on the China pulp market index. This dual approach on pricing has helped us remain competitive and responsive to market dynamics, balancing volume growth with value retention.

Moving please to slide 12, we have summarized the main developments on the uncoated woodfree markets. Apparent global demand for printing and writing papers was down by 2.4% year on year.

Uncoated woodfree remained the most resilient grade, declining by just 1.5%, compared with a drop of 4.8% on coated woodfree and 3.2% decline in mechanical papers. This resilience reflects the versatility of uncoated woodfree end uses, which has constantly outperformed other grades over time.

In Europe, however, apparent uncoated woodfree demand declined by 5% year on year, driven by weaker deliveries from European mills and a sharp reduction in imports. In fact, intra-European deliveries fell by 5%, while imports dropped by 10% year on year, confirming a significant slowdown in effective demand across the region.

Despite a significant increase in uncoated woodfree capacity in Asia of 4.3 million tonnes between '24 and 2025, which more than offset the capacity reduction of 1.5 million tonnes in Europe and the US. In the US, the decline was not as significant, with consumption down by 3.8% year on year.

At the same time, the closure of a major domestic mill increased the structural need for imports, which rose by 16%, partly also driven by anticipation of new tariffs last year. This tighter supply environment, combined with tariff impacts, has supported higher price levels in the US market, which are expected to remain elevated.

Navigator's operating rate, measured as deliveries over capacity, stood at 87%, up by 8 percentage points year on year, whilst the rate for European industry recovered slightly from 79 to 81%, up by 2 percentage points. In 2025, Navigator increased its order intake by 13% year on year in volume, marking our strongest performance since 2021, and surpassing even the peak levels achieved in 2022, a particularly strong year for uncoated woodfree.

Nuno will now give some more market context on the pulp business.

Thank you, Quirino. Turning to slide 13.

As Quirino just mentioned, in 2025, the pulp market came under severe pressure, most visibly through the sharp declining pulp prices in China from April onwards, with a clear spillover effects into Europe. This weak pricing environment was driven by several structural factors.

First, global overcapacity increased significantly, with major hardwood pulp expansions in both Latin America in '24 and China over the last five years, as Chinese producers pursued upstream integrations. Second, China saw a rapid rise in the use of domestic wood by smaller and mid-sized mills, supported by very low-cost capex, temporary availability of local wood diverted from the construction sector, and strong state backing in areas such as financing, employment, and energy.

Third, overcapacity in paper production and weak domestic demand in China compressed paper prices and, in turn, pulp prices, with operating rates across many segments falling to unsustainably low levels. At the same time, demand softened in Western markets, particularly in printing papers, contributing to a decline in European hardwood pulp consumption, alongside slower growth in tissue and packaging.

Finally, trade tensions, tariffs, and geopolitical uncertainty increased volatility, reshuffled trade volumes, and accelerated the downward pressure on prices. Nevertheless, at the global level, demand for market hardwood pulp grew by 6% year on year.

China remained the main growth engine, with demand up 8%, while the rest of the world grew by 7%. This contrasted with Europe, where demand declined by 1%, in line with weaker printing paper consumption.

In United States, demand fell by 3%, following heavy restocking in '24. The strongest global growth came from eucalyptus pulp, up 8% in '25, driven by a 10% increase in China, while Europe remained broadly steady.

This trend continues to strengthen eucalyptus pulp share within the hardwood bleached chemical pulp market. Looking at tissue performance on slide 14, European tissue demand grew by 1.2%, following strong growth of 6.3% in '24.

Navigator's tissue sales increased by 5% year on year, with turnover increasing by 6%. Our tissue business operates through two complementary models: an integrated Iberian operation, covering paper production and converting, and a UK operation, focused exclusively on converting.

While margins in the UK are structurally lower, this model enhances scale and market research. To strengthen our position as a leading paper tissue producer and enhance operational resilience, Navigator launched a strategic plan in '25 to consolidate its UK tissue rolls operations, with completion planned for '26.

Rolls and, foreseeably, wipes operations are being streamlined from five into two strategic hubs: the existing Leyland, and a new site in Leicester, optimizing coverage of northern and southern England, improving proximity to key consumer markets, and strengthening logistics efficiency. Operations at the new site are expected to start in the first half of this year, and the main workforce transition has been successfully completed.

With an investment of approximately £18 million, this project is expected to deliver cost efficiencies through the optimization of personal expenses and operating costs, driven by the integration, centralization, and increased scale of operations. These benefits are expected to be realized from '27 onwards, following the completion of the restructuring, with an estimated improvement of 2 to 3 percentage points in converted EBITDA margins, positioning them above the industry average.

Overall, acquisitions in Spain and the UK have improved our geographic balance and resilience, with finished products accounting for 98% of tissue sales, and a strong focus on the consumer segment, which now represents around 83% of volumes. Dorival will now comment on the main developments in packaging.

Thank you, Nuno. Now turning to slide 15.

In 2025, the European market for machine-glazed and machine-finished kraft paper grew by 2.6%. Navigator's packaging business outperformed the market, with sales up to 8%, supported by 11% growth in tonnage and 17% increase in paper area sold, reflecting deeper penetration in lightweight, low-grammage segments.

The strongest performance came from flexible packaging, particularly low-grammage food and non-food applications, alongside release liners for family and hygiene and personal care. These priority segments benefit from the technical and cost advantages of eucalyptus fiber, where Eucalyptus globulus is a clear differentiator.

This growth is fully driven by our own brand, gKraft, structured across three segments: BAG, FLEX, and BOX, where innovation based on eucalyptus fiber has been key to strong market acceptance and recognition. The packaging segment delivered a consistent performance over the year, supported by a gradual increase in sales.

Today, 71% of our sales are in Europe, with the remaining 29% in overseas markets, namely the Americas and the MEA region. As part of this industrial transformation, we approved in 2025 the rebuild of number three paper machine at the Setúbal complex to produce low-grammage flexible packaging.

This €30 million investment, running from 2025 to 2027, equips the machine with state-of-the-art technology, enhancing flexibility, energy efficiency, and product quality, and to meet growing international demand. The converted PM3 will produce around 90 to 100,000 tonnes per year, and it is expected to start up at the end of the third quarter of 2026, at a fraction of the cost, five to seven times lower than a greenfield project of approximately the same capacity, while still preserving our industrial flexibility to produce both uncoated woodfree and flexible packaging on the same machine.

This conversion transforms PM3 from a mid-tier uncoated woodfree asset into a well-positioned, first-quartile, competitive flexible packaging machine, leveraging our vertical integration and the cost advantages of eucalyptus fiber. As a result, Navigator will become the fourth-largest producer of low-grammage flexible packaging in Europe, strengthening our position in a market growing at 2.5 to 3% per year through 2035.

Now I hand over to António for a wrap-up of the full-year results.

Thank you, Dorival. Let's please turn to slide 16.

As we opened today, 2025 was the toughest year in decades for our industry. Yet Navigator has emerged better positioned for growth.

Our international footprint and diversified business model enabled us to capture opportunities, deliver higher volumes, and continue expanding market share, even in a highly challenging environment. At the same time, we have been positioning the group for future growth.

Key initiatives include the consolidation of all UK tissue operations, the investment decision for the PM3 rebuild in packaging, and the investment decision for the new tissue machine in Aveiro, each reinforcing efficiency, scale, and resilience. Our diversification strategy is clearly delivering results, and helped to cushion the impact of sharply falling prices in pulp and uncoated woodfree paper.

In packaging, sales benefited from the increase of our flexible packaging portfolio, initiated in 2023. In tissue, we continued to scale operations and capture long-term synergies, and an execution plan is underway to consolidate UK operations and enhance efficiency.

Alongside this, we remain firmly focused on our core operations, business transformation, and innovation, delivering a meaningful reduction in future cost intensity. These investments in efficiency and environmental improvement aim to ensure the longevity and continued exceptional margin generation of our world-scale, high-tech mills.

This transition reflects a commitment to leveraging our core expertise, while expanding into adjacent markets with high growth potential. All of this has been achieved while maintaining disciplined and conservative financial policies, with net debt to EBITDA at a solid 1.87 times.

A brief note on capital allocation, specifically regarding dividends. Considering Navigator's performance in 2025, the board of directors will propose to the general meeting of shareholders the distribution of dividends totaling €80 million.

I will now hand over to Nuno and Dorival, who will comment on the investment decision on a new tissue machine.

Thank you, António. Let's move on to slide 17.

As part of our growth strategy in the tissue segment, we took an important step in '25 by launching a feasibility study for a new tissue paper machine. This project would add around 70,000 tonnes of annual capacity, specifically to support our UK operation, acquired in '24.

The UK business has strong converting capacity, over 130,000 tonnes per year, but currently relies entirely on external reels, making this investment a key enabler of integration, efficiency, and resilience. The idea behind it is simple: create a more balanced, vertically integrated operation.

By producing our own reels, we reduce dependence on external suppliers, strengthen the sustainability of the process, and improve overall efficiency. It also allows us to develop products that are even better aligned with the needs of our UK customers, while leveraging the sustainability forestry base we have in Portugal.

Dorival will now provide some color on the capex and investment details.

Following the feasibility study, last week we moved ahead with the final investment decision. The new machine will be installed at our Aveiro industrial complex, which was designed from the beginning to accommodate a second tissue machine.

This location brings several advantages: shared infrastructure, integrated pulp supply, lower drying and transportation costs, and operational efficiency from being next to the first tissue machine, TM1. To further strengthen efficiency and resilience, we are implementing a tailor-made logistics model at the port of Aveiro, dedicated to shipping reels in mega-containers, instead of breakbulk.

This new model delivers significant logistics savings per tonne, driven by lower handling costs, fewer movements, and reduced variable costs. Today, reals supplied to our UK operation are shipped as breakbulk.

Moving to this containerized solution will also bring qualitative benefits, including more efficient handling, lower loss rates, and reduced environmental footprint through more efficient shipping. The investment totals around €115 million, spread across 2026, '27, and '28, with startup planned for April 2028.

The project will also benefit from support under the Portugal 2030 program. António will now comment on the outlook.

Thank you, Dorival. Let me share our view on the current market environment and, within the very limited visibility, our outlook for the coming months.

Globally, risks persist, particularly around geopolitical instability in different regions across the world, protectionism, economic fragmentation, and financial vulnerabilities in major economies remain a concern. While a recession does not appear imminent, growth is still relatively subdued, and ongoing uncertainty continues to weigh on investment and international trade.

Even with limited visibility, we remain cautiously optimistic about near-term market developments. Looking ahead, pulp prices are expected to strengthen in the first half of 2026, supported by improving momentum both in China and Europe.

In the second half, our downside scenario points to price stability, rather than any significant deterioration. Demand in 2026 is expected to be broadly in line with 2025, with growth in China offset by flat outlook in Europe.

On the supply side, new capacity additions will be limited. In contrast to 2025, no significant new capacity is expected to come online this year, considering that most of the 2.7 million tonnes of capacity in projects announced for 2026, including 1.3 in China and 1.4 in Indonesia, is due to start up only in the final part of the year, and its impact essentially be felt in 2027.

The project in Indonesia involves two lines, each with a capacity of about 1.4 million tonnes, of which around half is intended for the market. Only the first of these lines is expected to start at the end of the year, joined by the second some months later, with an impact essentially in 2028.

Finally, recent natural disasters in Indonesia have been linked by local authorities to continuous deforestation, leading to the revocation of forestry licenses. The Indonesian government have linked the scale of the disaster to the high level of deforestation in the past two decades, laying the blame on local industry and canceling the forestry licenses of some 22 companies which supply wood to Indonesian major exporters of cellulose pulp, uncoated woodfree paper, and tissue, covering an area of more than 1 million hectares.

The tragedy in Sumatra highlights the structural challenges faced by the Chinese-Indonesian producers operating in the country, including their inability to certify forests under internationally recognized systems. It should also reinforce concerns among European authorities regarding Indonesia's risk profile for wood and wood products under the EUDR framework.

This has tightened wood supply and supported prices, while reinforcing the strategic importance of certification and compliance with EUDR requirements. In the paper segment, the first quarter of this year began with renewed optimism.

Navigator led the market by announcing paper price increases, which were subsequently followed by other key players. In December last year, we announced a price increase in Europe of 5 to 12%, and in overseas markets of 5 to 11%.

The increase in overseas was already followed by a second increase of $30 per tonne in February this year. We also announced price increases of 5 to 8% in the United States, effective from next March onwards.

The impact of these global price increases in printing and writing paper will be felt mainly in the second half of this quarter, and as a result, we expect average prices in the first quarter to be above fourth quarter last year, with further increases anticipated in the second quarter, subject, of course, to the evolution of pulp prices. Despite this positive price momentum, the global environment remains challenging.

The sector continues to face a structural decline in consumption and economic stagnation across key regions, partially offset by recent capacity closures in Europe and North America. In the States, following a reduction of 350,000 tonnes of annual capacity by a major producer, another uncoated woodfree closure was announced in early this year, removing a further 320,000 tonnes of capacity.

Combined with impact of import tariffs and US market's heavy reliance on imports, we estimate a structural supply shortfall of approximately 1.2 million tonnes per year, or about 25% of consumption. This import requirement will need to be met by the limited number of countries able to supply products that meet US market specs, notably a small group of producers in Europe and Latin America.

US producers, at the same time, are likely to focus more on their domestic market, creating opportunities in their traditional export destinations. Looking ahead, the expected increases in pulp prices during 2026 should provide underlying support to paper prices.

European import levels remain steady, with no additional upward pressure on the market. While the sector continues to face a structural decline in consumption and a sharp economic slowdown across key regions, this has been partially offset by significant capacity closures: 430,000 tonnes in Europe last year, and a combined close to 670,000 tonnes in North America across last year and this year.

Within this context, the uncoated woodfree segment is showing renewed opportunities across different geographies, supported by supply discipline and Navigator's competitive position. In the tissue segment, demand continues at interesting levels.

The integration of Navigator Tissue UK is progressing well, with stronger collaboration between local and Iberian teams, driving cross-selling and a higher-margin portfolio. At the same time, we have launched an execution plan to consolidate UK operations in two core sites, Leyland and Leicester.

Integrated production and storage improves efficiency, scalability, and cost competitiveness, building on an already strong operational model. We have taken a final investment decision for a new tissue machine in Aveiro, a transformational project that will enhance efficiency and further strengthen the long-term resilience and competitiveness of our tissue segment.

It's worth pointing out that we are now a quite different company from what we were. We boost Europe's top uncoated woodfree business, which is a distinctive grade in printing and writing, in Europe at least.

We have proved we can sell our pulp at low discounts with solid margins, our tissue business outperforms, and we are building a diversified, innovative, and growing packaging business. Packaging continues to perform strongly, with growth in both volumes and prices.

At the same time, our PM3 conversion project is progressing as planned. Once completed, this investment will position Navigator as the fourth-largest producer of low-grammage flexible packaging in Europe, consolidating our presence in a segment with robust and growing demand.

From late January this year, a set of training storms, notably Storm Kristin, brought severe weather with strong winds and flash flooding to Portugal, particularly affecting the center of the country. Navigator responded proactively, working closely with impacted forestry producers and regions to support the sector's operational and economic recovery.

The storm caused disruptions at the Figueira da Foz and Vila Velha de Ródão mills due to external power and water outages, and some impact on our forestry assets still under assessment. There was no material damage to essential mill equipment, and production resumed normally within a few days once utilities were restored.

All other industrial units kept operating as usual. However, adverse weather conditions associated with storms have disrupted forestry operations and hindered the transportation of wood to our mills.

The relatively low stock levels at the start of the year, combined with impact of this storm, may require a temporary adjustment to sales volumes in the first quarter, which is still under assessment. Navigator's integrated business model, strong financial position, and ability to respond flexibly across the value chain, from forestry to a set of different finished products, are enabling us to navigate current challenges with confidence.

Ongoing diversification and continuous innovation in our core business will further strengthen Navigator's resilience and long-term value creation. Thank you.

Thank you, António. This ends our presentation.

We are now open for the Q&A session.

Hello. Good afternoon, everyone.

Thank you for taking my questions. I would focus on the new plant that you announced in Aveiro.

If you could share any numbers on this new plant, namely in terms of your expectations for EBITDA margin, or even EBITDA contribution once it starts up, it will be appreciated. Also, regarding the investment that you announced, the €115 million investment, one question about this: so would it be reasonable to assume that 20% of this investment could be in the form of non-reimbursable subsidies?

This will be the second question. The third question, just a bit of a more technical one, if you could just explain the changes in the fair value of biological assets, because I saw that in Q4 this had a relevant movement, around €5 million contribution in the EBITDA, positive contribution.

If you could just explain what are the dynamics behind this and what should we expect from this for 2026? Thank you.

Thank you, Bruno, for your questions. I'm going to try to repeat them.

The second, I was completely unable to understand. I'm going to repeat first and third, and I will ask you to, if you're so kind, to repeat second.

First, you'd like to try to understand better the EBITDA margin impact of Aveiro new tissue machine once it starts up, correct?

That's correct.

The third one is about fair value of biological assets. You'd like to understand a bit more how we see things in 2025 and going forward?

Yes, that's correct.

The second one, are you so kind to repeat it, please?

Sure. The second one is about the €115 million investment that you announced in Aveiro.

You mentioned that this shall have some subsidies from the government. My question here is if it would be reasonable to assume that 20% of this investment could be then in the form of non-reimbursable subsidies.

Okay. I'll give some introductory comments on the questions.

I will pass to Nuno the first one, and to Fernando the second and the third. The impact of the tissue machine is going to bring the tissue UK operation closer to what is the EBITDA margin of our Iberian operations.

As we have heard, we believe that with the reshuffling of converting operations we are doing in UK, this will add to the existing conversion 2 to 3 points margin improvement. It will be more or less the same range the integration of tissue, the new tissue machine.

Regarding the second question, obviously, we cannot share any specifics on our discussions with the Portuguese government. I would expect the levels not to differ from similar projects that we did with government, of course outside the EU NextGeneration funds, in previous investments.

Is not going to be materially different from that percentage-wise. Nuno, can you add something more on the first question, please?

I can only comment and stress what you just said. I think, overall, I think people attending the conference also have the benchmarks for what can be a tissue machine of this size.

For us, we would expect, on a long-term basis, cruise mode, that it should increase the EBITDA margin of tissue by 3%, something like that, and in fact, the EBITDA margin of Navigator by 1%, because, as tissue is already 1/3 of the EBITDA margin of the group.

Fernando?

About this invention related with the PM2 of tissue in Aveiro, the margin of support is around 20%. We are talking about a investment of €115 million.

In what concerns the biological assets, we have an increase this year is mainly related with Mozambique. The way that we calculate the discount cash flow, it was on the basis that we will cut and transport to Portugal, and fortunately, we found a better ways to monetize this biological assets in Mozambique.

This means that we have less costs and we can have increase of value. For the near future, we are not expected to have huge amounts of variation on biological assets, like we always do, we try to manage in the way that we do not foresee big increase for the future.

This particular year, it's because of this good news that we found ways to sell the trees locally.

Thank you for that. Just a follow-up: could you please elaborate a little bit more on those alternatives that you have now for the wood produced in Mozambique?

Are you exporting to Asia? What are those alternatives?

I will ask João to answer the question. João, please.

Yes, it's a good question. We, in the last two years, we found out that we could sell wood locally mostly for furniture purposes.

We sell it locally for Chinese operators mainly, but also from India. We expect that with this local sales, we can monetize almost all the wood stocks that we have in the near future.

Okay. That's clear.

Thank you very much for that.

It's probably better to move to the third question, and if needed, we go back.

I think that question was already answered and in a very complete way.

27. Yeah.

The general meeting will be held in May 27. Regarding dividends, we already gave the answer: €80 million is the proposal from...

Normally it's paid eight days after the general assembly meeting.

Thank you. This concludes our session.

Thank you for your time. Should you require any further clarification, please feel free to reach out through our usual channels, wishing you all a pleasant evening.