Ence Energia Y Celulosa Sa · BME:ENC
Ence Energia Y Celulosa Sa — Investor Presentation (September 2025)
46 slides from Ence Energia Y Celulosa Sa's investor presentation, Sep 18, 2025
Slide 1: Investors Presentation
Investors Presentation 18 September 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: Index
Index: 1. Overview 2. Pulp Business a. Market pulp industry b. Positioning and competitive advantages c. Diversification and efficiency projects 3. Renewable Business a. Positioning and competitive advantages b. Growth and diversification projects 3
Slide 4: Overview
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Slide 5: Ence Group
Ence Group We are leaders in the circular We manage two independent Consistent delivery of EBITDA 1 bioeconomy 2 and complementary 3 and Cash throughout the cycle businesses We are a leading European eucalyptus The Renewables business pulp producer and the largest biomass The Pulp and Renewable busi
Slide 6: Leading the circular bioeconomy
Leading the circular bioeconomy 4 activities, 2 businesses, 1 vision Sustainable forestry management Eco-efficient production of special pulp ▪ Ence manages close to 70,000 hectares of forest land in the Iberian 1 2 ▪ We are a leading European eucalyptus pulp producer, with 1.2 PULP Business Peninsu
Slide 7: Pulp and Renewable Energy independent and complementary businesses
Pulp and Renewable Energy 2 independent and complementary businesses Ence Energía y Celulosa Navia Pulp business Pontevedra Pontevedra biomill 100% 100% 100% Biomethane plant Forestry Navia Ence Assets biomill Renovables Ciudad Real Mérida 51% 1 50% 2 100% Córdoba Jaén Huelva Magnon Magnon biomass M
Slide 8: Consistent delivery of EBITDA and cash flow throughout the cycle
Consistent delivery of EBITDA and cash flow throughout the cycle The Renewable business complements the cyclical nature of the Pulp business 2015 – 2024 LTM EBITDA per business 2015 – 2024 LTM normalized FCF per business2 €m €m 291 200 248 165 216 213 192 144 138 137 165 138 75 246 167 126 127 94 17
Slide 9: Strong liquidity, long term maturities and no covenants in Pulp
Strong liquidity, long term maturities and no covenants in Pulp €362m consolidated net debt at the end of 2Q25 Pulp business net debt as of 30 Jun. 2025 (€ m) Pulp business debt maturity schedule (€ m) €309m of bilateral loans €130m RCF – Fully available 469 1 Lease contracts €33m of public sector f
Slide 10: Clear growth and diversification strategy
Clear growth and diversification strategy Into other biomass renewable energies and higher margin pulp products Growth and diversification projects in Diversification, efficiency and growth projects in Biomass Renewable Energy: Pulp: Iberian Biogenic Eucalyptus Biomass into CO2 Pulp Biomethane Ponte
Slide 11: Capital allocation priorities
Capital allocation priorities With clear leverage limits and ROCE targets for each business 1) Maintain a strong balance sheet 2) Fund organic investments with prudent leverage limits per with clear ROCE1 targets per business: business: ➢ Pulp business: >12% ➢ Pulp business Net Debt / EBITDA < 2.5x
Slide 12: Robust corporate governance with a supportive shareholder base
Robust corporate governance with a supportive shareholder base Management remuneration aligned with shareholder interests Shareholding Structure Board of Directors As of Jun. 2025 29.4% D. Juan Luis Arregui 10.0% D. Victor Urrutia Sustainability Nominating & Audit Committee Committee Compensation 10
Slide 13: ENCE: industry leader in sustainability
ENCE: industry leader in sustainability 4 sustainable priorities 1. Asegurar la sostenibilidad de la madera mediante la certificación 1. Health and safety 1. Ence Advanced pulp FSC/PEFC 1. Sustainable forestry 1. Equality, talent development and certification retention 2. Social license to operate 2
Slide 14: Market pulp industry
sence ENERGIA & CELULOSA Z. Market pulp industry |_| A
Slide 15: The global market pulp industry
The global market pulp industry Ence is a leading hardwood pulp producer in Europe with a ~10% European market share Europe 16 16 China North America 1 6 10 27 10 4 1 13 Demand Supply 8 8 1 17 4 11 2 4 1 Demand Supply Demand Supply South America Rest of the World 30 3 68 Mn t in 2024 13 4 27 1 7 5 4
Slide 16: Hardwood pulp vs. softwood pulp
Hardwood pulp vs. softwood pulp Substitutive materials with an increasing price spread Hardwood pulp (BHKP) Softwood pulp (BSKP) Most hardwood pulp Substitutive Most softwood pulp Source from eucalyptus wood materials from pine & spruce wood Best suited for products Best suited for higher with high
Slide 17: Continued market pulp demand growth
Continued market pulp demand growth Boosted by structural megatrends Global market pulp annual demand Est. Breakdown L10Y Avg. Growth Main drivers Mn tons by end use (%) (Mnt / year) 66,4 68,2 67,6 64,4 64,6 65,4 61,9 61,3 59,6 ✓ Urban growth and 55,7 57,1 increasing living standards in Tissue & 1,3
Slide 18: Tissue is the fastest growing paper segment
Tissue is the fastest growing paper segment Driven by urban growth and increasing living standards in emerging countries Tissue paper per-capita consumption Tissue annual consumption GROWTH Kg/year Last 10 years (Mn tons) Mn tons 13% of world population 87% 2,0 1,7 1,5 1,4 26 1,3 1,3 1,2 1,0 0,9 0,9
Slide 19: Paper packaging is the best sustainable alternative to plastic packaging
Paper packaging is the best sustainable alternative to plastic packaging A growing opportunity for the pulp and paper industry Food and beverage packaging breakdown by material (%) Sustainable paper packaging examples: IN THE MARKET TODAY: 6% 11% Glass 8% 11% Metal 34% SHORT TERM DEVELOPMENT WINDOW:
Slide 20: No large pulp capacity increases in Latam during 2025 - 2027
No large pulp capacity increases in Latam during 2025 - 2027 Supporting an improving outlook for pulp prices Avg. annual Pulp Prices in Europe European Pulp Futures Prices (BHKP USD / ton) (BHKP USD / ton) 1.435 1400 1.285 1.236 1.260 1.230 1200 1.045 1.037 1.010 1000 860 783 818 800 697 680 701 646
Slide 21: Pulp business positioning and competitive advantages
2. b Pulp business positioning and competitive advantages 21
Slide 22: A leading European eucalyptus pulp producer
A leading European eucalyptus pulp producer Recognized for the quality, flexibility and sustainability of our pulp production Navia biomill Pontevedra biomill Location: Asturias – Own land Location: Galicia – Public concession until 2073 Installed capacity: 685.000 tons / year Installed capacity: 51
Slide 23: Largest private forest manager in Spain
Largest private forest manager in Spain Pioneers in the clonal reproduction of eucalyptus globulus and its adaptation to climate change Ence eucalyptus plantations Hectares Annual production and book value 2024: Navia ✓ Annual production: > 0,3 million m3/year c.20,000 h ✓ Book value: €154m (€88m la
Slide 24: Local wood sourcing
Local wood sourcing We benefit from our close access to eucalyptus plantations around our biomills Eucalyptus plantations surface in N.W. Spain Main figures (FY2024): GALICIA Navia CANTABRIA ✓ 3 million m3 of wood purchased 400.000 h 40.000 h ✓ >86% sourced locally in Spain ✓ 79% of supplied wood ce
Slide 25: Ence's Pulp sales breakdown
Ence’s Pulp sales breakdown Focus on Europe and on growing segments with our own portfolio of higher margin pulp products Geographical breakdown of sales Breakdown by end product Higher margin pulp products % of pulp sales % of pulp sales % of pulp sales +79% vs. 2020 Europe 89% Tissue & 32% 32% Pac
Slide 26: Growing portfolio of Ence Advanced pulp products with higher margins
Growing portfolio of Ence Advanced pulp products with higher margins Ence Advanced products are expected to account for 50% of the sales in 2028 ✓ High strength pulp aiming to substitute softwood pulp % of total pulp sales in 1H25 ✓ Minimizes the energy consumption during the refining process + ✓ Fi
Slide 27: New fluff pulp line (125 kt) is on track for start-up in 4Q25
New fluff pulp line (125 kt) is on track for start-up in 4Q25 Fluff is expected to account for 12% sales in 2028 Fluff, Softwood and Hardwood gross pulp prices Expected % of total pulp sales in 2028 In Europe (USD/t) 2500 2000 1500 1000 50% 500 0 12% Jul-22 Jul-20 Jul-21 Jul-23 Jul-24 May-22 May-20
Slide 28: 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 Market pulp production costs by region ✓ Ence Advanced and upcoming fluff offering substitutes more expensive BSKP products. This special product range is expected to account for c.62% o
Slide 29: Just-in-time service with 5-7 days delivery
Just-in-time service with 5-7 days delivery Compared to 40 days from LatAm producers Lower logistics costs vs LatAm Protection against rising transport costs Reduced transport related CO2 emissions Ence has a privileged access to the European market with a capillarized sales force and a top customer
Slide 30: Virtually all our sales are generated in Europe and the Mediterranean
Virtually all our sales are generated in Europe and the Mediterranean Providing greater resilience to rising trade tariffs in other countries Virtually all our pulp sales are generated in Europe and Mediterranean markets, where we have significant competitive advantages in logistics and customer ser
Slide 31: 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 1,200 1,180 1,160 1,140 1,120 1,100 1,080 1,060 1,040 1,020 1,000 ene.-24 abr.-24 jul.-24 oct.-24 ene.-25 abr.-2
Slide 32: Diversification and efficiency projects in the Pulp business
Diversification and 2. c efficiency projects in the Pulp business
Slide 33: Diversification projects in the Pulp business
Diversification projects in the Pulp business These will deliver higher operating margins Status: On track Status: On track Status: On track ROCE1 target: >15% ROCE1 target: >15% ENCE ADVANCED PULP FLUFF RENEWABLE PACKAGING SOLUTIONS To diversify Navia’s production into Fluff pulp To develop and sel
Slide 34: Efficiency and growth projects in the Pulp business
Efficiency and growth projects in the Pulp business Aimed at significantly increasing our Pulp business average cycle EBITDA over the next 5 years Status: Started Status: Engineering and permitting Status: Engineering and permitting ROCE1 target: >15% ROCE1 target: >12% ROCE1 target: >12% NAVIA DECA
Slide 35: Positioning and competitive advantages in Renewables
3. a Positioning and competitive advantages in Renewables 35
Slide 36: Ence is the leading biomass collector and transformer in Spain
Ence is the leading biomass collector and transformer in Spain A unique platform for growth and diversification into new biomass renewable energies ➢ We are the leading biomass collector and transformer in Spain. Each year we manage over 2 Mn tons of agricultural and forestry biomass ➢ We draw exclu
Slide 37: Ence is the largest biomass power producer in Spain
Ence is the largest biomass power producer in Spain A regulated business that ensures a minimum 7.4%1 return for a standard plant Biomass Power Plants Portfolio Operating biomass 2 biomass projects ➢ Through our subsidiary Magnon Green Energy, we currently power plants 100 MW operate 8 biomass power
Slide 38: Growth and diversification projects in Renewables
3. b Growth and diversification projects in Renewables
Slide 39: Ence Biogas acquired a 50 GWh/yr biomethane plant in La Galera in 2024
Ence Biogas acquired a 50 GWh/yr biomethane plant in La Galera in 2024 La Galera plant has more than double its production since Ence’s entry La Galera estimated biofertilizer production (K tons) 20 15 10 5 0 2025e 2027e La Galera biomethane production La Galera estimated biomethane production (GWh)
Slide 40: 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 a
Slide 41: Magnon starts the construction of two biomass boilers for Mahou San Miguel
Magnon starts the construction of two biomass boilers for Mahou San Miguel For the supply of 85 GWh of biomass thermal energy per year with a 15-year term MAHOU-SAN MIGUEL THERMAL ENERGY PROJECT For the supply of 85 GWh of biomass thermal energy per year with a 15-year term Installed capacity: 20 MW
Slide 42: Second step in the creation of a renewable industrial heating platform in Spain
Second step in the creation of a 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 th
Slide 43: 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 44: Alternative Performance Measures (APMs) Pg.2
Alternative Performance Measures (APMs) Pg.2 It provides a comparable measure of the business’s profitability and is measured as the difference between the average sales price per tonne, calculated by dividing revenue from the sale of pulp by the number of tonnes sold, and the cash cost. NET FINANCE
Slide 45: 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 46: Delivering value Delivering commitments
Delivering value Delivering commitments
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