May 10th 2018

The Navigator Company

Q1 2018Results Presentation

Diogo da Silveira – CEO

Fernando Araújo – CFO

António Redondo – CCO

Nuno Santos

João Paulo Oliveira

Joana Appleton – IR

Participation

1

• Main highlights

• Market outlook

• Group performance

• Update on new projects

Q1 2018 results presentation

2

3

Significant turnover growth and diversification over the last years

Q1 2018 – Key Highlights

3

P&P Market • Pulp market continued strong with additionalincrease in prices

• Improvement in UWF pricesVolumes • Overall decrease in volumes due to production

stoppages, mainly in pulpDivestment • Conclusion of sale of Pellets business in the US

EBITDA • Positive impact of sale of pellets business• EBITDA without pellets improved 8% with

EBITDA/Sales of 26.4%Cost reduction • M2 program continues with total estimated

impact at € 3.8 million YoYNet Debt • Strong reduction in net debt with EBITDA/Net

Debt of 1.3Outlook • Positive momentum for prices should continue

• Navigator announced another price increase inUWF for July shipments

400

500

600

700

800

900

1000

1100

400

500

600

700

800

900

1000

1100

1 11 21 31 41 51 9 19 29 39 49 7 17 27 37 47 4 14 24 34 44 2 12 22 32 42 52 10 20 30 40 50

USD/ton BHKP EUR/ton BHKP

2018: Upward trend in pulp prices continues

PIX Europe

Av. YTw 13:824 €/ton

(+1.0% YTD)

Av. YTw 13:1013 USD/ton(+3.8% YTD)

2014 20162015 20172013

USD/ton €/ton

Week2018

Av. 2017:817 USD/ton

(Var. W1-52: +51%)

Av. 2017:723 €/ton

(Var. W1-52: +33%)

Av. 2016:717 USD/ton

(Var. W1-52: -16%)

Av. 2016:673 €/ton

(Var. W1-52: -13%)

4

YTD 2018 price increase in BHKP in USD: +3.8% and in Euros: +1.0%

YoY average price increase in BHKP in USD: +48% and in Euros: +28%

Market balance estimated for 2018 depends on China effect

5

Conserv.

Optim.

YoYkton

Feb. 2018M ton

48%

Share UWFOn world P&W paper

demand (exc. Newsprint)

UWF continues one of the best performing grade in P&W papers

Inc. SuperCalendered

14.0 6.8 3.6 1.8 1.9

‐0.8%

+0.0%

‐2.5%

‐1.7%

+0.1%

‐200

‐150

‐100

‐50

0

50

100

150

200

Total UncoatedWoodfree

CoatedWoodfree

UncoatedMechanical

CoatedMechanical

6Sources: PPPC; The Navigator Company

Source: Risi; EMGE Euro-Graph; The Navigator Company

Declining demand UWF: both in CS (-4.8%) and FL&RL (-0.7%) in Q1 2018 YoY

-2.5% UWF in Q1 2018 YoY

Price increase in Jan-Feb 2018 (+40USD/ton) and May 2018 (+55-70USD/ton)

PPP Copy 20-lb increases +20USD/ton (+1.9%) in Q1 2018 (YoY)

OR 92% (+2 pp)

Capacity decrease (-640 kton in Q4 2017-2018, aligned with expectedmarket in 2016-2018, -575 kton)

World paper market in Q1 2018

USA EUR

Contracting demand UWF: in CS (-5.5%), FL (-1.4%) and RL (-3.3%)in Q1 2018 YoY

-4.1% UWF in Q1 2018 YoY

PIX Copy-B increases +42 €/ton(+5.2%) in Q1 2018 YoY

Destocking effect since Nov 2017(CS, EMGE index); Some supplyrestrictions

OR 94% (-4 pp)

Apart from the period Mar-Jul 2017,Mar 2018 order book is the bestsince 2010 (34d)

Asia/China

Major players announced in the lastmonths aggregated worldwide priceincreases of more than +250USD/ton

Capacity increase in 2018:In China: +1.2 M tonIn UAE: +300 kton

China: tight environmental policiespressuring “old China” closures (littledetails available)

Ongoing energy restriction policiesnear Shangai and Beijing

7

8

European papermakers margin at minimum level

Index FOEX PIX (Europe)

A4 – B Copy: index for uncotaed woodfree paper (80 g/m2)

BHKP: index for bleached harwood kraft pulp (eucalyptus or birch)

A4 – B Copy

BHKP

€/ton

2012 2013 2014 2015 2016 2017 2018

Improvement in paper price benchmark in 2018

600

650

700

750

800

850

900

1 5 9131721252933374145491 5 913172125293337414549534 812162024283236404448524 812162024283236404448524 81216202428323640444852

A4 B-copy

Last PIX (W18): 860 €/ton

Average price in Q1 improved +5.2% YoY (+2.2% YTD)

2014 20162015 2017

European Market Paper Price – A4 B-copy €/ton

2018

Week

Av. 2016:822 €/ton

(Var. W1-52: -3.5%)

Av. 2017:819 €/ton

(Var. W1-52: +4.1%)

Av. YTw 13:845 €/ton(+2.2% YTD)

Source: FOEX9

10

Navigator paper performance in Q1 2018

• UWF sales volume of 361 kton (-10.3 kton YoY) and product miximprovement:

+ Premium products share up to 55% (+5.8 pp YoY; +16 kton YoY)

+ Mill brands up to 68% (+8.3 pp YoY; +9 kton YoY)

• In Q1 2018 Navigator led 2 pulp price increases in Europe(January and March) and in International markets and in theUS (January and April)

• Average price increased +3.1% YoY in spite of FX negative impact(USD impacted ~30% of paper sales)

11

Pulp turnover impacted by reduction in volume

• Pulp sales in volume of 53 kton, 37 kton less YoY due todecreased availability of pulp:

+ Maintenance stoppage at Setúbal pulp mill

+ Stock build up at Figueira da Foz (for planned maintenance + pulp capacity increase project)

• Navigator’s net price in Q1 2018 increased +28% YoY

• Improvement in the weight of Decor and Special paper sales inEurope, high contribution segments, from 64% to 84% YoY

12

Tissue business impacted by pulp price

• Volume of tissue sold in converted products increased 13% YoY

• Sales increased 4% to € 19 million (vs. € 18 million)

• Average sales price 9% higher YoY due to improvement in product mix(decreased weight of reels)

• Operating margin impacted by pulp price increase

AFH 64%

AH 31%

Reels 5%

Tissue Sales by segment

Portugal 58%

(-3% YoY)

Spain 36%

(+0% YoY)

Other 6%

(+4% YoY)

Tissue Sales by market

EBITDA Performance in Q1

Delta Pellets: + € 9.4 million of capital gain + € 2.3 million of pellets losses in 2017 +

Other

13

Positive performance in EBITDA due to price effect and pellets sale

M €

12

217

Pellets & Other

CostsPrice EffectVolume Effect

-11

EBITDA R17

90

EBITDA R18

111

M2 cost reduction and efficiency programme continues

14

• Estimated impact YoY on EBITDA in Q1 2018 of € 3.8 million,mainly due to:

+ Fibre consumption: € 1.3 million

+ Chemicals: € 0.8 million

• Savings in energy contracts renegotiation estimated at € 7.3million

15

Free Cash Flow positively impacted by cash from pellets sale and VATreimbursement

Free Cash Flow at € 134 million

*Others includes:• Cash from pellets business sale (€ 68 million)• VAT reimbursement (€ 51 million)

Free Cash Flow

Suppliers and Others*

Change in Accounts

Receivables

Change in Inventories

CAPEXOperating Cash Flow

Free Cash FlowM €

86

13492

-2-14-29

16

Significant reduction in net debt

641 617

738 742693

559

1,6 1,61,8 1,9

1,7

1,3

Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Net debt & Net debt/EBITDA

Net debt Net debt/EBITDA

M €

-3,9

-5,5

Q1 2017 Q1 2018

17

New credit facilities and extension of maturity reduce cost of debtQ1 2018 – Financial results

Financial results negatively impacted by

one off item

Financial results decreased from - € 3.9 to - € 5.5 million:

• Negative impact of € 3.3 million, related to advance recognition of the difference between the nominal and current value of the deferred amount for disposal of the pellets business (USD 45 million).

• Interest expense was reduced by € 0.2 million

• Positive impact of currency hedging and exchange rate of € 3.0 million

CAPEX of € 29 million (vs. € 14 million)

18

11,4

1,911,0

4,2

Pulp Figueira

Tissue Rodão Pulp, Paper and Others

28,6

Tissue Cacia CAPEX

CAPEX

YoBMain

Projects

M €

Outlook for 2016 

Pulp: positive momentum should continue as demand as beenabsorbing new capacities

Tissue: high pressure on margins; rise in pulp price needs to be offset byan increase in tissue price

Paper: order book remains strong and new price increases are beingannounced in Europe and the rest of the world

• No foreseeable change in market conditions for pulp and paper in the nearfuture and main concerns remain exchange rate and cost of chemicals

• Operating performance in Q2 2018 will be impacted by productionstoppage at Figueira da Foz pulp mill.

Outlook for 2018

19

Update on New Projects – Pulp F. Foz

20

Optimization Project 3 – Ecoefficiency:

Total CAPEX of € 81.5 million

Main Goals:• Increase the annual pulp production from

580,000 to 650,000 tAD

• Increase the efficiency of pulp process

• Reduce wood and chemicals specific consumption

• Implementation of BAT (ex: O2 delign)

• Environmental advantage for flue gas and liquid

effluent emissions

• Collection and burning of diluted odorous gases

Project completed in April and ramping-up

Update on Cacia tissue project

• Integrated tissue mill with capacity to produce 70 kton of reels andconverted products

• Project on time and on budget:

- paper machine to start up in Q3 2018

- converting lines starting in May

- Estimated capex kept at € 121 million

• Book-building of new clients in progress in Portugal, Spain,

France and UK

21

Current view of Cacia tissue project

22

Cacia tissue project: first converting line to start 3rd week of May

23

Cacia tissue project: first converting line to start 3rd week of May

24

Cacia tissue project: first toilet paper and pallet produced (current week)

25

Navigator – #2 player in tissue in Iberia after expansion project

26

Paperproduction

Oth

ers

Fin

ish

edp

rod

uct

pro

du

ctio

n(c

onve

rtin

g)

Finished product

production (converting)

Paperproduction

Estimated tissue production capacity in Iberian Peninsula (kton)

27

2018 Dividend proposal

Dividend proposal - AGM to be held on May 23th 2018:

+ Navigator Board of Directors proposes dividend of €170 million to be paid in June (0.2371 €/share)

+ Main Shareholder proposes distribution of reserves of € 30 million to be paid in July (0.04184 €/share)

+ Implicit dividend yield of 6%*

*Reference price share on May 8th of 4,936 €/share

Back-up slides – Financials

28

29

Quarterly  Financials   2015 

393 420 397 427385

Q12017

Q22017

Q32017

Q42017

Q12018

Turnover (M €)

90108 102 104 111

Q12017

Q22017

Q32017

Q42017

Q12018

EBITDA (M €)

36

6150

62 53

Q12017

Q22017

Q32017

Q42017

Q12018

Net Earnings (M €)

23% 26% 26% 25% 29%

Q12017

Q22017

Q32017

Q42017

Q12018

EBITDA/Sales (%)

11%15% 13% 15% 17%

Q12017

Q22017

Q32017

Q42017

Q12018

ROCE (%)

11%

21%17%

21%18%

Q12017

Q22017

Q32017

Q42017

Q12018

ROE (%)

Quarterly figures – YoY evolution

Disclaimer

30

This presentation is intended to provide a general overview of The Navigator Company S.A.’s businessand does not purport to deal with all aspects and details regarding The Navigator Company S.A..Accordingly, no representation, undertaking or warranty, expressed or implied, is given by The NavigatorCompany S.A. or any of its subsidiaries’ undertakings, affiliates, directors, officers, employees or advisorsor any other person as to the fairness, accuracy, completeness or correctness of the information oropinions contained in this presentation or of the views given or implied or any other material discussionin connection with this presentation.

This presentation has been prepared by The Navigator Company S.A. for information purposes only. TheNavigator Company S.A. or any of its affiliates, directors, officers, employees or advisers or any otherperson shall not have any liability whatsoever (including in case of omission, negligence or otherwise) forany losses, errors or omissions howsoever arising, directly or indirectly, from any use of this presentationor its contents or otherwise arising in connection therewith or with respect to their reliance upon thecompleteness and accuracy of any such information, as well as any damages resulting hereof.