Results 3Q25

3Q25 Results

29 October 2025

Today's presenters

Ignacio de Colmenares

Chairman & CEO

Ence Energía y Celulosa

Alfredo Avello

Chief Financial Officer

Ence Energía y Celulosa

3

Results Summary

2025 Outlook

• BHKP prices hit lows in 3Q25. Two price increase announcements were made for a total of gross 130 $/t in Europe of which c. +60 $/tn are already reflected in the PIX pulp as well as c. +30 $/tn net in China.

• Tariff redemptions for pulp imports into the US as well as maintenance shutdowns by major LatAm players in 4Q'25 (c. 0,5m tn), should sustain the positive trend trough year-end.

• Our FX hedging policy provides a cap at 1.09 USD/EUR. Considering an average exchange rate of 1.16, this would represent approximately

  €3 million of EBITDA in 4Q 2025.

• Expected Cash cost of 466 €/t in

  2H25, in line with 2025 guidance.

• Start-up of our 125 kt fluff pulp (c.+60€/tn extra margin). On product homologation phase.

• 3Q higher energy production and lower operating costs to continue in 4Q25

1. Energy Savings Certificates

   3Q25 Operating Highlights

   • 29 €/t cash cost reduction vs. 2Q25 and 30€/t vs. 3Q24, down to 459 €/t

   • Special pulp products accounted for 29% of total pulp volumes sold in 9M25 (+7 p.p. vs. 9M24), with 33€/t higher margin (vs. 29 €/t in 9M24).

   • Pulp sales of 263 kt, +13% vs 3Q24 (+8% QoQ). Despite Pontevedra annual maintenance shutdown (water effluent recovery system successfully operating for the third summer season with limited water availability).

     ▪ +4% QoQ growth in energy generation, up to 315 GWh (+2% YoY vs. 3Q24).

   • La Galera quarterly production should permit to increase by c. 20% its yearly production compared to 2024. This improvement has been achieved through applying Ence's best industrial practices, including odour reduction.

     3Q25 Financial Results

   • Pulp EBITDA of €4m in 3Q25 vs

     €20m in 2Q25, both including CAEs1

     and/or insurance collections.

     EBITDA dropped vs 3Q'24 mainly

     due to weaker FX and pulp prices.

   • Renewables EBITDA of €8m in 3Q25, vs €4m in 2Q25 backed by lower production costs and higher selling prices. EBITDA decreased vs. 3Q24 due to lower selling prices partially offset through operating costs reduction.

   • FCF before growth capex amounted to €12m despite low pulp prices in 3Q25 vs. -€13m in 2Q25.

   • 3Q cash generation of €18m through WC improvement fully neutralizes 1H25 WC increase.

   • €17m growth and efficiency capex

     in 3Q25

   • Net Debt of €367m at the end of Sep.25 with €264m cash in balance.

     
     
     

     Growth, Efficiency and Diversification Projects

   • 2028 Ence's Special Pulp Centered Business to increase the average across-the-cycle EBITDA by 1,5x:

     • Top line: (i) Higher-margin special pulp sales to exceed 62% of 2028 volumes, delivering incremental EBITDA of €22m, (ii) As Pontes environmental license granted in 3Q25, (iii) Renewable packaging solutions to start up in 2H26.

     • Cash Cost: (i) Efficiency & Competitiveness Plan to capture average annual savings of 22 €/t cash cost from 2027, (ii) Navia decarbonization and cost reduction project (c. 8 €/t savings) launched in

       1Q25, (iii) Pontevedra Avanza (20€/t).

   • Largest Iberian biomass backboned Renewable Energy Platform, on track to almost triple its EBITDA by 2030 through:

     • Biomass to Biomethane: >1TWh |

       >€60m EBITDA

     • Biomass to Renewable Industrial Heating: 2TWh| >€40m EBITDA

4

1. 3Q25 Highlights

5

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 (USD/t)

1.700

1.600

1.500

1.400

1.300

1.200

1.100

1.000

900

800

700

600

500

sep.-20

dic.-20

mar.-21

jun.-21

sep.-21

dic.-21

jun.-22

dic.-22

jun.-23

dic.-23

jun.-24

dic.-24

400

Future Pulp Prices in Europe (USD/t)

mar.-22

sep.-22

mar.-23

sep.-23

mar.-24

sep.-24

mar.-25

jun.-25

sep.-25

Oct-25

Jan-26

Apr-26

Jul-26

Oct-26

NBSK EU (gross) BHKP EU (gross)

Source: FOEX, Hawkins Wright & Norexeco

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) Average floor (USD / EUR)

EUR / USD Hedges as of 30/09/25

Average floor (USD / EUR) 1,06 1,07 1,07 1,06 1,06

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 contracts,

• Procurement,

• Maintenance and industrial operations,

• Forestry and logistics,

• Safety & Quality.

• Orderly reduction of FTEs as a result of operational efficiencies.

• Collective Redundancy Procedures (Proceso de Despido Colectivo) initiated.

• Negotiations with union representatives already underway.

Estimated NPV > 200M€. Payback c. 1 year

Potential annual savings of 22€/t in cash cost between both pillars Total amount of €23m to be disbursed between 2026 and 2027

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

• High strength pulp aiming to substitute softwood pulp

• Process cost optimization

✓

✓

+

First unbleached hardwood pulp in the market Certified CO2 footprint during the product life cycle

• Increases tissue softness

• Suitable for decor paper applications

• Narrow range of porosity

• Plastic alternative in packaging for food & beverage industry

• Low porosity material

% of total pulp sales volume in 9M25

Standard BHKP

29%

+ Others such as

, , and



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

In Europe (USD/t)

Expected % of total pulp sales volume in 2028

2.500

Standard

BHKP

50%

12%

2.000

1.500

1.000

500

0

FLUFF

NBSK EU (gross) BHKP EU (gross) Fluff Europe (gross)