Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Q3 2025 Earnings Presentation
33 slides from Ence Energia Y Celulosa Sa's earnings presentation, Oct 29, 2025
Slide 1: 3Q25 Results
3Q25 Results 18 29 October 2025
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has been prepared by Ence Energía y Celulosa, S.A. (hereinafter, "Ence"). This presentation includes data relating to future forecasts. Any data included in this presentation which differ from other data based on historical information, inclu
Slide 3: Today’s presenters
Today’s presenters Ignacio de Colmenares Alfredo Avello Chairman & CEO Chief Financial Officer Ence Energía y Celulosa Ence Energía y Celulosa 3
Slide 4: Results Summary
Results Summary Growth, Efficiency and 2025 Outlook 3Q25 Operating Highlights 3Q25 Financial Results Diversification Projects ▪ 2028 Ence’s Special Pulp Centered ▪ BHKP prices hit lows in 3Q25. Two Business to increase the average ▪ 29 €/t cash cost reduction vs. 2Q25 ▪ Pulp EBITDA of €4m in 3Q25 vs
Slide 5: 3Q25 Highlights
1. 3Q25 Highlights 5
Slide 6: European BHKP price hit the lows in 3Q25
European BHKP price hit the lows in 3Q25 Gross BHKP prices bottomed at 1,000 $/t by late August, price increases announced by main producers for 4Q’25 Gross Pulp Prices in Europe Future Pulp Prices in Europe (USD/t) (USD/t) 1.700 1.600 1.500 1.400 1.300 1.200 1.100 1.000 900 800 700 600 500 400 Jul-
Slide 7: Mitigating the impact of a weaker dollar through our ongoing FX hedging policy
Mitigating the impact of a weaker dollar through our ongoing FX hedging policy Annual average cap of 1.09 dollars for almost 50% of our expected pulp sales in 2025 EUR / USD Exchange Rate 1,250 1,200 1,150 1,100 1,050 1,000 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 EUR/USD Average cap (USD / EUR) Av
Slide 8: Efficiency & Competitiveness Plan launched
Efficiency & Competitiveness Plan launched 200 M€ NPV of the Plan. Potential average annual savings of 22€/t from 2027 Reinforcing our commitment towards Efficiency and Competitiveness based on two pillars Artificial Intelligence solutions and process reengineering Operations Streamline ✓ Services c
Slide 9: Ence Advanced pulp substitute softwood pulp products
Ence Advanced pulp substitute softwood pulp products Expected to account for over 50% of Ence’s pulp sales volumes in 2028, up from 29% 9M25 % of total pulp sales volume in 9M25 ✓ High strength pulp aiming to substitute softwood pulp ✓ Process cost optimization + ✓ First unbleached hardwood pulp in
Slide 10: Our first 125 kt fluff pulp line has started operations in 4Q25
Our first 125 kt fluff pulp line has started operations in 4Q25 Fluff pulp is expected to account for 12% sales in 2028. Currently on product homologation phase Fluff, Softwood and Hardwood gross pulp prices Expected % of total pulp sales volume in 2028 In Europe (USD/t) 2.500 Standard 2.000 BHKP 1.
Slide 11: Special products are positioning Ence as a top-quartile producer in the global cash cost curve
Special products are positioning Ence as a top-quartile producer in the global cash cost curve vs. BSKP producers ✓ Ence Advanced and upcoming fluff offering products substitutes more expensive BSKP ones. This special product range is estimated to account for c.62% of Ence’s sales by 2028. Market pu
Slide 12: Sale of Energy Saving Certificates for a net amount of €40m
Sale of Energy Saving Certificates for a net amount of €40m Fully cashed in €40m in 9M25 Energy efficiency projects undertaken An Energy Saving Certificate (CAE) These Energy Saving Certificate Ence sold Energy Saving imply annual energy savings is an electronic document which (CAE) may be acquired
Slide 13: La Galera plant on track to increase its annual production by c.20%
La Galera plant on track to increase its annual production by c.20% Ongoing upgrading of the plant to produce 50 GWh and 20 kt of organic fertilizer from 2027 La Galera estimated biofertilizer production (K tons) 20 15 10 5 0 2025e 2027e La Galera biomethane production (GWh) 50 40 30 +20% +4% 20 10
Slide 14: First step in the creation of biomethane platform in Spain
First step in the creation of biomethane platform in Spain Target: >1 TWh of biomethane production by 2030 and over €60m contribution to EBITDA BIOMETHANE BUSINESS PIPELINE EXPECTED DEPLOYMENT PROJECT PIPELINE (Operating Plants) Biofertilizer and biomethane production from the valorisation of local
Slide 15: Progressive steps in our renewable industrial heating platform in Spain
Progressive steps in our renewable industrial heating platform in Spain Target: 2TWh thermal energy supply by 2030 and over €40m contribution to EBITDA RENEWABLE THERMAL ENERGY PIPELINE EXPECTED DEPLOYMENT PROJECT PIPELINE BUSINESS (Operating Plants) Development and supply of biomass, and the O&M of
Slide 16: Key achievements in renewable industrial heating
Key achievements in renewable industrial heating O&M contract for a ready-to-operate plant and start of construction of two plants O&M contract gained to operate an 8MWt plant with an estimated annual production of 33 GWht/y for a F&B company. The project is currently on start-up phase and it is exp
Slide 17: 3Q25 Financial Results
2. 3Q25 Financial Results 17
Slide 18: Pulp business EBITDA in 3Q25 at €4m
Pulp business EBITDA in 3Q25 at €4m 29 €/t cash cost reduction vs. 2Q25 Avg. NET Sales price Cash Cost Pulp sales volume Pulp EBITDA (€/t) (€/t) (,000 t) (€m) -17% -6% +8% -78% 71 542 263 488 243 452 459 20 4 2Q25 3Q25 2Q25 3Q25 2Q25 3Q25 2Q25 3Q25 90€/t net pulp price decrease vs. 29 €/t cash cost
Slide 19: Biomass to renewable electricity EBITDA at €9m
Biomass to renewable electricity EBITDA at €9m €8m Renewables EBITDA includes new business development costs Biomass to renewable electricity Biomass to renewable electricity Biomass to renewable electricity Renewables EBITDA energy revenue per MWh (€/MWh) costs per MWh (€/MWh) volumes sold (€/MWh)
Slide 20: €13m consolidated EBITDA in 3Q25
€13m consolidated EBITDA in 3Q25 - €15m net income Group Revenues (€m) Group EBITDA (€m) Attributable Net Income (€m) -46% -6% 24 192 181 13 (9) (15) 2Q25 3Q25 2Q25 3Q25 2Q25 3Q25 €11m lower revenues vs. 2Q25 €11m lower consolidated EBITDA vs. 2Q25 €15m losses at Net Income level ▪ - €15m in Pulp Bu
Slide 21: +€12m FCF before expansion and efficiency capex in 3Q25
+€12m FCF before expansion and efficiency capex in 3Q25 €18m cash through WC reduction offsetting 1H25 increase Cash Flow Statement 3Q25 (€m) ▪ Fluff project ▪ Navia cash cost reduction and decarbonization project ▪ €18m WC inflow mainly driven by ▪ Sustainable packaging project development inventor
Slide 22: Strong liquidity, long term maturities and no covenants in the Pulp Business
Strong liquidity, long term maturities and no covenants in the Pulp Business €367m consolidated net debt at the end of 3Q25 Pulp business net debt as of 30 Sep. 2025 (€ m) Pulp business debt maturity schedule (€ m) €292m of bilateral loans €130m RCF – Fully available 452 1 Lease contracts €30m of pu
Slide 23: ENCE: industry leader in sustainability
ENCE: industry leader in sustainability Highlights Q3 2025 Safe and Eco- Bioproducts & Responsible Positive social efficient operations ecosystem services supply chain impact Potential for topline To become preferred To grant business For operational cost improvement supplier sustainability reductio
Slide 24: 2025 Outlook and Closing Remarks
3. 2025 Outlook and Closing Remarks 24
Slide 25: Closing Remarks
Closing Remarks ▪ BHKP prices have hit lows in 3Q25. Price increase announcements of gross 130 $/t were made for Europe, of which c. 60€/t are already in the PIX pulp. ▪ Cash cost has been reduced by 29 €/t in the quarter supporting 466€/t in 2H 2025. Efficiency & Competitiveness Plan launched with
Slide 26: Appendix
5. Appendix 26
Slide 27: Group Financial Review P&L
Group Financial Review P&L 9M25 9M24 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Total revenue 413,1 148,9 (1,9) 560,1 530,6 140,3 (2,8) 668,1 Foreign exchange hedging operations results 4,8 2,0 - 6,8 0,5 - - 0,5 Other income 66,4 5,6 (1,0) 71,0 1
Slide 28: Group Financial Review Cash Flow Statement
Group Financial Review Cash Flow Statement 9M25 9M24 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Consolidated profit/(loss) for the period before tax (14,9) (19,8) 1,2 (33,5) 63,0 (17,5) 1,2 46,7 Depreciation and amortisation 45,2 24,6 (1,2) 68,6
Slide 29: Group Financial Review Balance Sheet
Group Financial Review Balance Sheet Sep-2025 Dec-2024 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Intangible assets 21,0 56,4 (11,1) 66,3 19,2 57,2 (11,6) 64,9 Property, plant and equipment 641,9 370,9 (5,6) 1.007,1 608,6 372,4 (6,4) 974,6 Biolog
Slide 30: Alternative Performance Measures (APMs) Pg.1
Alternative Performance Measures (APMs) Pg.1 Ence presents its results in accordance with generally accepted accounting principles, specifically IFRS. In addition, its quarterly earnings report provides certain other complementary metrics that are not defined or specified in IFRS and are used by man
Slide 31: Alternative Performance Measures (APMs) Pg.2
Alternative Performance Measures (APMs) Pg.2 NET FINANCE COST AND OTHER FINANCIAL ITEMS Net finance cost encompasses the various items of finance income and finance costs, while other financial items encompasses exchange differences, the change in the fair value of financial instruments and impairme
Slide 32: Alternative Performance Measures (APMs) Pg.3
Alternative Performance Measures (APMs) Pg.3 NORMALISED FREE CASH FLOW Normalised FCF is the sum of EBITDA, the change in working capital, maintenance capex, net interest payments and income tax payments. It provides a proxy for the cash generated by the Company's operating activities before collect
Slide 33: Delivering value Delivering commitments
Delivering value Delivering commitments
Ence Energía y Celulosa — Q3 2025 Earnings Presentation on 6ix