Slides
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18 4Q25 Results 25 February 2026
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2 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, including, in a merely expository manner, those which refer to the financial situation of Ence, its business strategy, estimated investments, management plans, and objectives related to future operations, as well as those which include the words "anticipate", "believe", "estimate", "consider", "expect" and other similar expressions, are data related to future situations and therefore have various inherent risks, both known and unknown, and possess an element of uncertainty, which can lead to the situation and results both of Ence and its sector differing significantly from those expressly or implicitly noted in said data relating to future forecasts. The aforementioned data relating to future forecasts are based on numerous assumptions regarding the current and future business strategy of Ence and the environment in which it expects to be situated in the future. There is a series of important factors which could cause the situation and results of Ence to differ significantly from what is expounded in the data relating to future forecasts, including fluctuation in the price of wood pulp or wood, seasonal variations in business, regulatory changes to the electricity sector, fluctuation in exchange rates, financial risks, strikes or other kinds of action carried out by the employees of Ence, competition and environmental risks, as well as any other factors described in the document. The data relating to future forecasts solely refer to the date of this presentation without Ence being under any obligation to update or revise any of said data, any of the expectations of Ence, any modification to the conditions or circumstances on which the related data are based, or any other information or data included in this presentation. The information contained in this document has not been verified by independent experts and, therefore, Ence neither implicitly nor explicitly gives any guarantee on the impartiality, precision, completeness or accuracy of the information, opinions and statements expressed herein. This document does not constitute an offer or invitation to acquire or subscribe to shares, in accordance with the provisions of Royal Legislative Decree 4/2015, of 23 October, approving the consolidated text of the Securities Market Act. Furthermore, this document does not constitute a purchase, sale or swap offer, nor a request for a purchase, sale or swap offer for securities, or a request for any vote or approval in any other jurisdiction.
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3 Chairman & CEO Ence Energía y Celulosa Ignacio de Colmenares Chief Financial Officer Ence Energía y Celulosa Alfredo Avello Today’s presenters
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▪ Europe gross BHKP prices average stood at 1,086$/tn, price increases to 1,330$/t in March, already announced. ▪ Demand remains strong driven by emerging economies growth and fiber to fiber substitution. Moreover, capacity closures, shifts to dissolving and the revocation of forestry licenses in Indonesia, will support the price trend. ▪ Ence special pulp continue to grow with a target close to 40% share in 2026 (vs. 30% in 2025). ▪ Ongoing cash costs initiatives to reduce cash costs by 30€/tn in 2026/27, 15€/tn in 2026 (468€/tn cash costs guidance). ▪ New regulatory parameters(1) increase biomass’ plants Ro by 6€/MWh, meaning incremental run-rate EBITDA of c.+€10m(2). ▪ +c.€30m Positive cash impact in 1H26 from: (i) the collection of NOLs (c.€24M)(3) and (ii) CAEs (c.€6m). ▪ Cash cost of 483€/tn in 2025 (478€/tn excluding Pontevedra strike) vs. 493€/tn in 2024. 2025 Cash cost is the lowest since 2022. ▪ Special pulp products accounted for 30% of total pulp volumes sold in 2025 (+7 p.p. 2024), with 37€/t higher margin. ▪ Ence becomes the only European based producer of eucalyptus fluff, starting the rump-up of its operations in 4Q’25 (125k tn capacity). ▪ +6% YoY growth in energy generation, up to 1,241 GWh (+10% QoQ). ▪ Renewable Industrial Heating gained 3 landmark contracts in 2025. As of today, there are 3 projects in construction with COD expected by mid 2026 and a fourth one in start-up phase. ▪ La Galera consolidates its positive performance with +27% increase in annual production of biomethane without capex related. ▪ Pulp EBITDA of €56m in 2025, including CAEs, vs. €138m in 2024. ▪ Renewables EBITDA of €27m (+4% YoY increase), including €4m of devex from new businesses. ▪ FCF before growth capex of €8m despite low pulp prices and weaker FX vs. €35m in 2024. ▪ Investments amounted to €114m including machinery leasing and change in inventories related to industrial heating (vs. €125m guidance). ▪ Net Debt of €378m with €241m in cash. ▪ New €200m MARF bond program registered in Jan’26. First issuance of 85M€ with 4y bullet maturity and 410 bps coupon as a clear signal of the reliability of Ence for the investor community. ▪ Agreements reached for collective dismissal processes, 141 positions will be amortized through voluntary departures, early retirements and reallocations to other business units within the group. A provision of €24m was registered in 2025 accounts. ▪ 2028 Ence’s Special Pulp Centered Business to increase the average across-the-cycle EBITDA by 1,5x: o Top line: (i) Special pulp sales > 62% in 2028, delivering incremental EBITDA of €22m, (ii) As Pontes environmental license granted in 3Q25, (iii) Renewable packaging solutions in 2H27. o Ongoing Cash Cost initiatives (30€/tn): (i) Efficiency & Competitiveness Plan to capture average annual savings of 22 €/t cash cost from 2027, (ii) Navia cost reduction and decarbonization project (c. 8 €/t savings) with COD in 2Q26. o Pontevedra Avanza: 20€/tn cash cost savings ▪ Largest Iberian biomass backboned Renewable Energy Platform, on track to almost triple its EBITDA by 2030 through: o Biomass to Biomethane: >1TWh | >€60m EBITDA o Biomass to Renewable Industrial Heating: 2TWh| >€40m EBITDA 4 Results Summary Growth, Efficiency and Diversification Projects 2026 Outlook 2025 Operating Highlights 2025 Financial Results (1) Order TED/ 53/2026, also includes an increase of +20€/MWh in the Ro of cogeneration facilities (i.e. LU-13). (2) For an estimated production of c. 1,4 TWh. (3) In 2024, the Constitutional Court (STC 11/2024) annulled the limit on offsetting tax losses allowing companies to cash back non applied tax losses.
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5 4Q25 Highlights1.
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Gross Pulp Prices in Europe (USD/t) 6 ▪ BHKP prices ended 2025 at 1,100 $/t, from August lows of 1,000$/t, averaging 1,086$/tn in 2025. Major pulp producers have announced several price increases in Europe since late December up to 1,330$/t in March. ▪ Demand fundamentals remain strong with +3,6% YoY growth as of November, driven by the sound development in emerging economies and the fiber to fiber substitution process. On top of that: (i) maintenance shutdowns planned in 1Q26 (c. 500k t) together with capacity shift to dissolving pulp (c. 1M tn) and (ii) the revocation of forestry licenses in Indonesia, impacting between 1 to 4 million tons of BHKP , will support the price trend during the year. European BHKP price turns to a positive path in 4Q25 Gross BHKP prices have increased by 10% in 4Q25 to reach 1,100$/t in December. Price increase announced by major producers up to 1,330$/t in March. Pulp prices in Europe - Experts consensus (USD/t) Source: (1) Historic prices: FOEX, (2) Pulp price forecasts – Average of TTOBMA, Fastmarkets and Hawkins Wright estimates as of Jan.’26, (3) Global Demand data: PPPC (Jan.’26). 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000 2.200 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25 Apr-25 Jun-25 Aug-25 Oct-25 Dec-25 Jan-26 Mar-26 May-26 Jul-26 Sep-26 Nov-26 Jan-27 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000 2.200 dic.-20 feb.-21 abr.-21 jun.-21 ago.-21 oct.-21 dic.-21 feb.-22 abr.-22 jun.-22 ago.-22 oct.-22 dic.-22 feb.-23 abr.-23 jun.-23 ago.-23 oct.-23 dic.-23 feb.-24 abr.-24 jun.-24 ago.-24 oct.-24 dic.-24 feb.-25 abr.-25 jun.-25 ago.-25 oct.-25 dic.-25 NBSK EU (gross) BHKP EU (gross) Fluff Europe (gross)
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7 Ence’s special pulp substituting softwood pulp products Expected % of total pulp sales volume in 2028 >62% Standard BHKP Ence Advanced Ence Fluff ✓ Broad range of BSKP substitute products with different attributes (high strength, unbleached HWP , low porosity, softness) and suitable for diverse applications (hygiene, decor, packaging; etc.) ✓ 2028 Target: 500k tn with +30€/tn of incremental margin ✓ Ence is the sole European producer of fluff pulp based on eucalyptus wood competing with softwood. Currently in 8 homologation processes. ✓ 2028 Target: 125k tn with +60€/tn of incremental margin Special pulp accounted for 30% of the sales in 2025 (vs. 23% in 2024) with incremental margin over standard BHKP of 37€/tn. We expect to increase its weight up close to 40% in 2026. In 2028, special pulp should stand for more than 62% of the sales contributing with an extra-margin of over 36€/tn. Ence’s special pulp Speciality products +36€/tn of incremental EBITDA margin
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553 526 493 483 468 453 2022 2023 2024 2025 2026E 2027E 8 Efforts on cash cost reductions are showing Ongoing measures should allow to additionally reduce cash costs by 30€/tn between 2026 and 2027 ▪ Cash cost of 483€/tn in 2025, reflecting a -70€/tn improvement vs. 2022. Major gains achieved through wood procurement, on the back of Ence’s local sourcing, and wood processing optimization. ▪ Excluding the impact of labour strikes in 4Q25, cash cost for the year 2025 would have been 478€/tn (vs. 485 €/tn guidance at the beginning of the year). ▪ Following the agreement reached with labour representatives at both biofactories, Ence will reduce its headcount on the pulp business by 15% in 2026/27 period (141 employees). The annualized savings of this departures will amount to €11m (11 €/tn) which are part of the 22€/tn savings announced in the Competitiveness & Efficiency plan. The cost of the headcount reduction amounts to €24m, it is fully provisioned in 2025 accounts and will be cashed out in 2026/27. Additionally, there will be c. €2m cash out related to AI and process reengineering initiatives (totalling €26m cash out for 22€/tn savings). ▪ On top of the above, Navia cost reduction & decarbonization plan will allow to reach 8 €/tn savings with an estimated investment of €35m. ▪ Therefore, the Competitiveness & Efficiency plan and Navia Decarbonization sum up €30m of annual savings (30€/tn). €/tn
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East Europe 552$/t Chile 571$/t Other World 593$/t Other Europe 663$/t Sweden 673$/t US 674$/t East Canada 676$/t Finland 685$/t Int. West Canada 750$/t Coastal BC 753$/t Indonesia 380$/t Brazil 397$/t Chile/Uruguay 433$/t East Europe 481$/t China 507$/t Iberia 526$/t Other Asia/Africa 542$/t Belgium/France 560$/t Japan 566$/t Canada 576$/t Finland 592$/t US 604$/t 0 100 200 300 400 500 600 700 800 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 USD/t Mn t BSKP BHKP 9 Special pulp positions Ence as the lowest cash cost producer in the BSKP cash cost curve Source: Hawkins Wright. CIF Europe (December 2025) Market pulp production costs by region In 2028, more than 62% of Ence’s sales will come from BSKP substitute products, being Ence the lowest cost player in the BSKPsegment
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10 Sale of Energy Saving Certificates for a net amount of €40m Fully cashed in These Energy Saving Certificate (CAE) may be acquired by energy companies to fulfill their energy saving targets. An Energy Saving Certificate (CAE) is an electronic document which guarantees that, after carrying out an energy efficiency action, a new final energy saving equivalent to 1 kWh has been achieved. Energy efficiency projects undertaken imply annual energy savings equivalent to 251 GWh, which have been verified by AENOR. Ence sold Energy Saving Certificates (CAE) for a net amount of €40m in 2025. €40m in 2025 Energy Savings certificates have contributed to Ence’s pulp results with €40m in 2025, fully cashed in. We expect to cash in additional €10m in 2026, c.€6m in 1H26.
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11 Biomass to regulated electricity benefitting from new regulatory parameters Positive impact of new regulatory parameters estimated at +€10m of annual recurrent EBITDA for an estimated production of 1,4TWh ▪ The Spanish Ministry for the Ecological Transition and Demographic Challenge (MITECO) released updated remuneration parameters applicable to biomass and cogeneration facilities. The new parameters add +6€/MWh for Magnon’s biomass facilities and +20€/MWh for the cogeneration unit (LU-13). ▪ For an estimated run-rate production of 1,4 TWh, the new parameters generate an incremental EBITDA of approximately €10m on top of the potential run-rate EBITDA of €40m. 10 40 10 4Q'25 Run-rate 346 GWh 1,4 TWh Biomass to regulated electricity run-rate EBITDA (€M) €50m
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12 Progressive steps in our renewable industrial heating platform in Spain Target: 2TWh thermal energy supply by 2030 and over €40m contribution to EBITDA As of today, 1 contract in operation, 1 contract in start-up phase and 3 projects in construction. Pipeline with a required ROCE1 >11%. RENEWABLE THERMAL ENERGY BUSINESS Development and supply of biomass, and the O&M of comprehensive thermal energy solutions based on biomass for industrial applications Plant size: 40 – 160 GWh Prod. Target: 2,000 GWh/yr by 2030 Estimated Capex: €0.1m – €0.2m / GWh ROCE1 Target: > 11% 1 ROCE = EBIT / Equity + Net Debt (including leases) 11 projects under negotiation 2 project under advanced negotiations PROJECT PIPELINE PIPELINE EXPECTED DEPLOYMENT (Operating Plants) 2026 2027 2028 2029 2030 5 13 13 7 11 4 COD & 1 RTB in 2026
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13 First step in the creation of biomethane platform in Spain Target: >1 TWh of biomethane production by 2030 and over €60m contribution to EBITDA Biofertilizer and biomethane production from the valorisation of local agricultural and livestock biomass, including the associated sustainability certificates Plant size: 50 – 100 GWh Production Target: 1,000 GWh by 2030 Estimated Capex: €0.4m / GWh ROCE1 Target: > 12% BIOMETHANE BUSINESS La Galera consolidates an annual production growth of +27% under ENCE’s O&M, driven by non-capex related operating initiatives Actively seeking for inorganic opportunities to accelerate pipeline deployment 1 ROCE = EBIT / Equity + Net Debt (including leases) 42 plants: locations secured and feasibility studies completed 25 plants already in their permitting phase 10 plants expected RTB in 2026-27 PROJECT PIPELINE PIPELINE EXPECTED DEPLOYMENT (Operating Plants) 2026 2027 2028 2029 2030 . 1 1 4 7 10 13 12 7 5 1 1
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14 2. 4Q25 Financial Results
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138 56 26 27 2024 2025 Pulp Renewables €83m €164m 683 544 197 206 2024 2025 15 €83m consolidated EBITDA in 2025 €13m EBITDA in 4Q2025 Group EBITDA (€m) Attributable Net Income (€m)Group Revenues (€m) • 2025 Group revenues mainly driven by weaker prices in our pulp business and higher generation in the renewables business. ➢ In 4Q25, pulp revenues amounted to €131m vs. €153m in 4Q24 and €132m in 3Q25. As per the renewables business, revenues amounted to €57m vs €56m in 2024 and €50m in 3Q25. • EBITDA in the pulp business is also the result of weaker pulp prices combined with better cash cost and energy saving certificates. In the renewables business, the improved production output has been mainly offset by higher gas and CO2 certificates costs. ➢ In 4Q25, pulp EBITDA amounted to €3m vs. €6m in 4Q24 and €4m in 3Q25. As per the renewables business, EBITDA amounted to €10m vs €6m in 4Q24 and €8m in 3Q25. €876m(1) €747m(1) (1) Including consolidation adjustments 44 (42) (14) (15) 2024 2025 €32m(1) -€55m (1)
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16 +€12m FCF before WC variation and expansion and efficiency capex in 2025 €59m Growth and Efficiency Capex Cash Flow Statement 2025 (€m) ▪ Fluff project ▪ Navia cash cost reduction and decarbonization project ▪ Sustainable packaging project development ▪ Pontevedra Avanza project engineering ▪ Biofertilizer and biomethane projects devex ▪ Renewable thermal energy projects devex 83 (40) (35) 4 12 (4) (59) 3 (47) EBITDA Maintenance Capex Net interest payments Tax payments FCF before WC and Growth Capex WC variation Growth and efficiency Capex Financial investments, disposals and other adjustments Free Cash Flow
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165 112 5 58 Gross debt Cash Net debt Lease contracts (IFRS 16) 66 58 81 31 27 24 35 45 31 0 126 102 92 40 31 60 2026 2027 2028 2029 2030 Following 17 Strong liquidity, long term maturities and no covenants in the Pulp Business €378m consolidated net debt at the end of 2025. 388 266 61 183 Gross debt Cash Net debt Lease contracts (IFRS 16) Pulp business net debt as of 31 Dec. 2025 (€ m) (1) 449 (2) Pulp business debt maturity schedule (€ m) Renewables business net debt as of 31 Dec. 2025 (€ m) Renewables business debt maturity schedule (€ m) 170 (2) 12 11 11 10 5 107 2 1 1 1 00 1 1 1 11 2026 2027 2028 2029 2030 Following €14m La Galera project finance 118 6131314 12 €20m RCF– Fully available€156m Magnon corporate financing €5m IFRS 16 €287m of bilateral loans €25m of public sector financing €61m IFRS16 €130m RCF – Fully available €77m commercial paper program 1 Pulp business financial debt is covenant free 2 Includes debt related to upfront fees New €200m MARF bond program registered in Jan’26. First issuance of €85m with 4y bullet maturity (2030) and 410 bps coupon.
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ENCE: industry leader in sustainability as a tool to be more competitive Highlights 4Q 2025 18 Higher margin special Pulp products with higher added value: ✓ 3 new Sustainability certifications for fluff Pulp. ✓ 32% of sales from special Pulp products in 4Q25 with higher margins and growing demand. Advancing towards a circular economy ✓ Pioneering projects for the valorization of ash and limestone sludge in the mining and cement sectors ✓ 100% sites ZERO WASTE certified (Pulp and Energy Plants) ✓ Third year of operation of the water recovery system in Pontevedra, increasing resilience to climate-related drought risk Odour reduction ✓ Historic record In Navia with 0 minutes of odour registered. Certified Supply chain ✓ 89% of managed land certified. ✓ 77% of Wood certified. ✓ 100% sites SURE System certified (Sustainable biomass). Protecting Health and Safety of employees and contractors ✓ LTIFR for Pulp and Power Plants 6 and 3 times better than the sector benchmark, respectively. ✓ Navia technical shutdown completed with zero accidents (with/without sick-leave) and Pontevedra with zero sick-leave accidents. Talent as a competitive advantage ✓ 25% female employees. ✓ 30% female in managerial positions. ✓ 41% job openings filled with internal promotion. Creating positive social impact in local communities ✓ New edition of Ence’s Pontevedra Social Plan (up to 3M€) for the sponsoring of social and environmental projects in the area, supporting 240 initiatives. Forestry bioproducts and ecosystem services ✓ Improved plant material, better adapted to climate change: 1 new Eucalyptus clone developed and already in commercial. ✓ >4,300 ha of forest sinks registered in different schemes for voluntary carbon markets. Supply chain supervision ✓ Deployment of the new Third Party Due Diligence Procedure, in order to minimize human rights violations and negative environmental impacts risks along the supply chain, with 1,500 third parties analyzed. ✓ PEFC certification obtained for biomass trading. Promoting professional development in rural communities ✓ >950 technical advice sessions with Forest owners. ✓ New edition of the Forestry machinery training program. Water consumption reduction ✓ Historical record in Navia with lowest specific water consumption (m3/tAD). System Governance ✓ Update of the Code of Conduct and approval of the first Third-Party Code of Conduct. ✓ Implementation and certification of the ISO 37001 Anti-bribery Management System. ✓ Antitrust Policy approval. Safe and Eco- efficient operations Bioproducts & ecosystem services Responsible supply chain Positive social impact For operational cost reduction Potential for topline improvement To become preferred supplier To grant business sustainability Recycled Fiber - As Pontes ✓ Integrated Environmental Authorization (IEA) obtained for the development of the bioplant for recycled fiber production in As Pontes. This circular-economy project combines the recovery of paper and textile fibers, renewable energy generation, and CO₂ capture, with a significant impact on employment and sustainability in the region.
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19 3. 2026 Outlook and Closing Remarks
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▪ Positive outlook for gross BHKP prices in Europe on the back of (i) demand fundamentals (incl. emerging economies growth and fiber to fiber substitution), (ii) capacity shifts to dissolving and (iii) production constraints in Indonesia. Price inc reases up to 1,330 $/tn should be implemented in March (vs. year-end PIX of 1,100 $/tn and August’25 lows of 1,000 $/ tn). ▪ Cost saving measures delivered a 10€/tn reduction in cash costs in 2025 (-44 €/t reduction QoQ vs. 4Q24). In 2025 cash cost stood at 483€/tn, being the lowest since 2022 (-70€/tn). ▪ Ongoing cash costs initiatives, including the Efficiency & Competitiveness Plan and Navia cost reduction and decarbonization plan, are expected to reduce cash costs by 30€/tn in 2026/27 period. 15€/tn savings should be captured in 2026 leading to a cash cost guidance of 468€/tn for the year. Agreements have reached in both biomills, 141 positions will be amortized through voluntary departments, early retirements and reallocations to other business units within the group. ▪ New regulatory parameters increase biomass’ plants remuneration to operations (Ro) by 6€/MWh and cogeneration’s plants Ro by 20 €/MWh. These should be translated into an incremental EBITDA of +€10m for Magnon for an estimated production of 1,4 TWh. ▪ 2028 Ence’s Special Pulp Centered Business to increase the average across-the-cycle EBITDA by 1,5x: o 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 2H27. o Ongoing cash costs initiatives (30€/tn): (i) Efficiency & Competitiveness Plan to capture annual savings of c. 22 €/t cash cost from 2027 and (ii) Navia decarbonization and cost reduction project (c. 8 €/t savings) o Pontevedra Avanza: integral capex plan to trigger 20€/t savings. ▪ Higher-margin special pulp products targeted to substitute more expensive BSKP alternatives, are positioning Ence as a top quartile producer cost wise vs. BSKP producers. In 2026, these products should account for close to 40% of the sales volumes (vs. 30% in 2025) ▪ We are building the largest Iberian biomass backboned Renewable Energy Platform, including Biomass to Regulated Electricity + Renewable Industrial Heating + Biomethane + Renewable Fuels, and it is on track to almost tripled its EBITDA by 2030. ▪ The execution of these projects will be adapted and aligned to our cash flow generation, to maintain a prudent across-the- cycle leverage and an attractive shareholders remuneration. 20 Closing Remarks and 2026 Outlook
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21 Appendix
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22 Group Financial Review P&L Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Total revenue 543,6 206,0 (2,4) 747,3 683,2 196,7 (3,7) 876,2 Foreign exchange hedging operations results 8,7 2,6 - 11,3 (0,6) (2,8) - (3,4) Other income 81,0 7,9 (1,4) 87,4 21,8 5,3 (1,3) 25,8 Cost of sales and change in inventories of finished products (349,7) (67,0) 2,4 (414,3) (342,2) (69,6) 3,7 (408,1) Personnel expenses (87,0) (25,6) - (112,6) (89,6) (23,5) - (113,1) Other operating expenses (140,6) (96,4) 1,4 (235,7) (134,4) (79,7) 1,3 (212,8) EBITDA 56,0 27,4 (0,0) 83,5 138,2 26,3 0,0 164,5 Depreciation and amortisation (52,7) (32,0) 1,9 (82,8) (57,9) (34,5) 1,6 (90,8) Depletion of forestry reserves (7,2) (0,1) 0,0 (7,3) (9,7) - - (9,7) Impairment of and gains/(losses) on fixed-asset disposals (0,1) 0,8 0,0 0,8 (1,7) 1,7 - (0,0) Other non-ordinary operating gains/(losses) (26,2) (4,9) 0,0 (31,1) 3,8 (4,5) - (0,6) EBIT (30,1) (8,7) 1,9 (36,9) 72,6 (10,9) 1,6 63,3 Net finance cost (23,5) (16,6) - (40,1) (18,6) (13,8) - (32,4) Other finance income/(costs) (3,9) (1,0) (0,0) (4,9) 1,2 0,3 (0,0) 1,5 Profit before tax (57,5) (26,3) 1,9 (81,9) 55,2 (24,5) 1,6 32,4 Income tax 15,8 3,7 (0,1) 19,4 (11,4) (0,7) (0,1) (12,2) Net Income (41,6) (22,6) 1,7 (62,5) 43,8 (25,2) 1,5 20,1 Non-controlling interests - 8,0 - 8,0 - 11,4 - 11,4 Atributable Net Income (41,6) (14,5) 1,7 (54,5) 43,8 (13,8) 1,5 31,6 Earnings per Share (EPS) (0,17) (0,06) 0,01 (0,22) 0,18 (0,06) 0,01 0,13 20242025
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23 Group Financial Review Cash Flow Statement 1 Disposals in 2025 exclude the maturity in January 2025 of current financial investments amounting to €10m, as they are considered as cash and cash equivalents Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Consolidated profit/(loss) for the period before tax (57,5) (26,3) 1,9 (81,9) 55,2 (24,5) 1,6 32,3 Depreciation and amortisation 59,9 32,1 (1,9) 90,1 67,6 34,5 (1,6) 100,5 Changes in provisions and other deferred expense 35,7 8,9 - 44,5 8,6 4,9 - 13,5 Impairment of gains/(losses) on disposals intangible assets 0,6 0,3 - 0,9 1,9 (1,7) - 0,2 Net finance result 25,5 16,4 (0,0) 41,8 17,8 13,6 - 31,4 Energy regulation adjustments (2,2) (6,9) - (9,1) (0,8) (0,9) - (1,7) Government grants taken to income (0,9) (0,1) - (0,9) (0,9) (0,1) - (1,1) Adjustments to profit 118,5 50,7 (1,9) 167,3 94,2 50,3 (1,6) 142,8 Inventories 0,7 (11,0) - (10,4) (29,5) 0,1 0,0 (29,4) Trade and other receivables 15,7 16,6 (5,2) 27,1 (8,3) (28,5) 4,1 (32,8) Current financial and other assets - - - - - - - - Trade and other payables (5,5) (19,9) 5,2 (20,3) 1,1 (0,9) (4,1) (3,9) Changes in working capital 10,8 (14,4) 0,0 (3,6) (36,7) (29,3) - (66,0) Interest paid (19,6) (15,7) 0,0 (35,2) (19,3) (14,2) - (33,4) Dividends received - - - - 0,0 - - 0,0 Income tax received/(paid) 3,0 0,6 - 3,6 (6,5) 9,6 - 3,1 Other collections/(payments) - - - - (0,2) - - (0,2) Other cash flows from operating activities (16,5) (15,1) 0,0 (31,6) (26,0) (4,6) 0,0 (30,5) Net cash flow from operating activities 55,3 (5,0) 0,0 50,3 86,7 (8,1) (0,0) 78,6 Property, plant and equipment (67,5) (25,1) (0,0) (92,6) (52,0) (18,9) - (70,9) Intangible assets (4,5) (1,4) - (5,8) (4,6) (1,4) - (6,0) Other financial assets and Group companies 7,9 (2,1) (6,1) (0,3) (45,3) (18,9) 44,0 (20,2) Disposals 1 1,6 0,3 (0,1) 1,8 1,2 1,0 - 2,2 Net cash flow used in investing activities (62,4) (28,3) (6,2) (96,9) (100,7) (38,1) 44,0 (94,8) - Free cash flow (7,1) (33,3) (6,2) (46,6) (14,0) (46,3) 44,0 (16,2) Buyback/(disposal) of own equity instruments (1,2) - - (1,2) 0,7 - - 0,7 Proceeds from and repayments of financial liabilities (5,7) 1,3 6,2 1,8 (69,4) 109,0 (44,0) (4,4) Dividends payments - (0,4) - (0,4) (34,0) (5,1) - (39,1) Net cash flow from/ (used in) financing activities (6,9) 0,8 6,2 0,1 (102,7) 103,8 (44,0) (42,8) Net increase/(decrease) in cash and cash equivalents (14,0) (32,5) 0,0 (46,5) (116,6) 57,6 - (59,1) 20242025
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24 Group Financial Review Balance Sheet The pulp business includes, among its investments, the higher relative cost associated with the Navia 80 project, completed in 2019, amounting to €8m. This is due to the arbitration ruling dated June 17, which requires the Group to pay €15m, of which €8m had already been recorded. 2025 2024 Figures in € m Pulp Renewables Adjustments Consolidated Pulp Renewables Adjustments Consolidated Intangible assets 20,9 56,3 (11,0) 66,2 19,2 57,2 (11,6) 64,9 Property, plant and equipment 648,2 371,0 (5,1) 1.014,0 608,6 372,4 (6,4) 974,6 Biological assets 65,2 0,2 0,0 65,4 66,1 0,3 (0,0) 66,3 Non-current investments in Group companies 114,0 0,0 (114,0) 0,1 114,0 0,6 (114,0) 0,7 Non-current borrowings to Group companies 59,4 (0,0) (59,4) (0,0) 65,7 - (65,7) - Deferred tax assets 49,2 27,2 2,8 79,2 35,2 23,9 2,9 62,0 Non-current financial assets 10,3 2,9 0,0 13,2 19,5 20,3 - 39,8 Cash reserve for debt service - 11,5 - 11,5 - 10,0 - 10,0 Total non-current assets 967,1 469,1 (186,7) 1.249,5 928,3 484,7 (194,8) 1.218,3 Inventories 75,9 16,3 (0,0) 92,1 82,1 12,5 (0,0) 94,6 Trade and other accounts receivable 23,0 24,7 (2,5) 45,3 39,5 36,0 (6,0) 69,4 Income tax 2,9 0,6 - 3,5 5,3 1,3 - 6,6 Other current assets 14,9 0,0 0,0 14,9 15,7 0,3 0,0 16,1 Hedging derivatives 0,6 1,0 - 1,6 - - - - Current financial investments in Group companies 0,0 0,9 (0,9) 0,0 0,2 0,7 (0,8) 0,0 Current financial investments 2,4 0,1 0,0 2,5 13,3 0,2 (0,0) 13,6 Cash and cash equivalents 180,6 46,9 - 227,5 184,6 79,4 - 263,9 Total current assets 300,2 90,5 (3,4) 387,3 340,7 130,4 (6,9) 464,2 TOTAL ASSETS 1.267,3 559,7 (190,1) 1.636,9 1.269,0 615,1 (201,6) 1.682,4 Equity attributable to the Parent 522,0 82,5 (127,3) 477,2 559,1 95,6 (129,0) 525,6 Minority interest - 89,4 - 89,4 - 97,1 - 97,1 Total Equity 522,0 172,0 (127,3) 566,7 559,1 192,6 (129,0) 622,6 Non-current loans with Group companies and associates - 88,4 (59,4) 29,0 - 94,7 (65,7) 29,0 Non-current borrowings 323,3 157,3 - 480,6 291,3 155,1 - 446,4 Non-current derivatives 1,0 0,2 - 1,2 2,2 1,8 - 4,0 Deferred tax liabilities - - - - - - - - Non-current provisions 36,6 0,7 - 37,3 28,9 0,6 (0,0) 29,5 Other non-current liabilities 26,8 60,3 (0,0) 87,0 33,8 71,9 - 105,7 Total non-current liabilities 387,6 306,9 (59,4) 635,2 356,2 324,2 (65,7) 614,7 Current borrowings 126,0 12,9 0,0 138,9 149,2 13,0 - 162,2 Current derivatives 1,1 0,7 - 1,8 6,9 1,1 (0,00) 8,0 Trade and other account payable 181,8 60,4 (2,5) 239,7 166,4 80,2 (6,0) 240,6 Short-term debts with group companies 0,7 2,7 (0,9) 2,5 0,7 1,0 (0,8) 0,9 Income tax 0,0 0,0 (0,0) 0,1 0,0 0,0 - 0,0 Current provisions 48,0 4,0 - 52,1 30,5 3,0 - 33,5 Total current liabilities 357,6 80,8 (3,4) 435,0 353,7 98,3 (6,9) 445,1 TOTAL EQUITY AND LIABILITIES 1.267,3 559,7 (190,1) 1.636,9 1.269,0 615,1 (201,6) 1.682,4
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25 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 management to track the company's performance. The alternative performance measures (APMs) used in this presentation are defined, reconciled and explained in the corresponding quarterly earnings report publicly available through the investor section of our web page www.ence.es. EBITDA EBITDA is a measure of operating profit before depreciation, amortisation and forest depletion charges, non-current asset impairment charges, gains or losses on non-current assets and other non- operating items that undermine the comparability of the numbers. EBITDA is an indicator used by management to track the Group's recurring profitability over time. This metric provides an initial approximation of the cash generated by the Company's ordinary operating activities, before interest and tax payments, and is a measure that is widely used in the capital markets to compare the earnings performances of different companies. OTHER NON-OPERATING ITEMS Other non-operating items refers to ad-hoc income and expenses unrelated to the Company’s ordinary business activities that render two reporting periods less comparable. CASH COST The production cost per tonne of pulp, or cash cost, is the key measure used by management to measure and benchmark its efficiency as a pulp maker. The cash cost includes all of the costs directly related with the production and sale of pulp that impact cash flows. Therefore, it does not include asset depreciation and amortisation charges, impairment losses on non-current assets or gains or losses on their disposal, other non-operating items, finance income or costs or income tax. The cash cost can be measured as the difference between revenue from the sale of pulp and EBITDA in the Pulp business, adjusted for the settlement of hedges, forest depletion charges and the change in inventories. To calculate the cash cost, the related production costs are divided by the volume of tonnes produced, while overhead and sales and logistics costs are divided by the volume of tonnes sold. OPERATING PROFIT PER TONNE OF PULP The operating profit is a yardstick for the operating profit generated by the Pulp business without taking into account asset depreciation and amortization charges, impairment losses on non-current assets and gains or losses on their disposal and other non-operating items, adjusted for the settlement of hedges, and forest depletion charges. 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.
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26 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 impairment losses on financial instruments and gains or losses on their disposal. MAINTENANCE, EFFICIENCY, GROWTH AND SUSTAINABILITY CAPEX ENCE provides the breakdown of the capital expenditure included in its statement of cash flows for each of its business classifying its investments into the following categories: maintenance capex, efficiency and growth capex, sustainability capex and financial investments. Ence’s technical experts classify its capital expenditure using the following criteria: Maintenance capex are recurring investments designed to maintain the capacity and productivity of the Company's assets. Efficiency and growth capex, meanwhile, are investments designed to increase those assets' capacity and productivity. Lastly, sustainability capex covers investments made to enhance quality standards, occupational health and safety and environmental performance and to prevent contamination. Financial investments correspond to payments for investments in financial assets. The disclosure of capex cash flows broken down by area of investment facilitates oversight of execution of the current Business Plan. OPERATING CASH FLOW The operating cash flow coincides with the net cash from operating activities presented in the statement of cash flows. However, operating cash flow is arrived at by starting from EBITDA, whereas net cash from operating activities is arrived at by starting from profit before tax. As a result, the adjustments to profit do not coincide in the two calculations. This APM is provided to reconcile EBITDA and operating cash flow. FREE CASH FLOW Ence reports free cash flow as the sum of its net cash flows from operating activities and its net cash flows from investing activities. Free cash flow provides information about the cash generated by the Group's operating activities that is left over after its investing activities for the remuneration of shareholders and repayment of debt.
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27 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 collection of proceeds from asset sales, the adjustments related with electricity sector regulations and other adjustments to profit. It represents the amount available for investments other than maintenance capex, for shareholder remuneration and for debt repayment. NET DEBT / (CASH) The borrowings recognised on the balance sheet, include bonds and other marketable securities, bank borrowings and other financial liabilities, including leases (IFRS 16). They do not include, however, the measurement of derivatives or borrowings from Group companies and associates. Net debt/(cash) is calculated as the difference between current and non-current borrowings on the liability side of the statement of financial position and unrestricted cash on the asset side, which includes cash and cash equivalents, the debt service cash reserve (included with non-current financial assets) and other financial investments (within current assets). Net debt/(cash) provides a proxy for the Group's net indebtedness or liquidity and is a metric that is widely used in the capital markets to compare the financial position of different companies. ROCE ROCE stands for the return on capital employed and is used by management as a key profitability performance indicator. It is calculated by dividing EBIT for the last 12 months by average capital employed during the period, capital employed being the sum of equity and net debt. For the Pulp business, equity is calculated as the difference between consolidated equity and the equity recognised by the Renewable Energy business. ROCE is widely used in the capital markets to measure and compare the earnings performance of different companies.
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Delivering value Delivering commitments