ENCE Energía y Celulosa, S.A.

Good morning, ladies and gentlemen. Welcome to the NC first quarter 2025 results presentation. I want to hand over to Mr. Ignacio Cominares, Executive Chairman, and Alfredo Avelio, CFO. Gentlemen, please go ahead.

Good morning, ladies and gentlemen. Thank you for joining us today. I wish to take you through our second quarter results for 2025. Our company is based on local roots and also local biomass. Our production of advanced pulp products continues to grow, substituting other more expensive BSKT products. We continue to generate diversified non-conventional renewable energy. We are doing this prudently And our focus is on profit, strength, and sustainability. Our CFO, Alfredo Avello, and our head of IR, Ines Alvarez, are also connected to this call. I'll begin with the main strategic highlights of the quarter and the operational backbone of our businesses. Alfredo will then present our detailed financial performance. I would like to start with the main highlights of the second quarter in slide 4. We continued our disciplined delivery in cash cost reduction during the quarter and made steady progress within a complex global situation. We successfully reduced our pulp costs to 488, a 22 euros improvement from first quarter. by our operational efficiency and energy optimization initiatives. Our strategic diversification program is also advancing firmly. ENFE advanced PAL sales now account for 32% of total sales, underscoring our continuing shift toward higher added value advanced PAL grades with resilient demand. The first FLAF pipeline remains on track for commissioning in fourth quarter. Our targets are the growing but resilient end-use sectors, as are hygiene and healthcare. Both ranges of products substitute more expensive BSKP. We have initiated the decarbonization project at our Navia facility and continue progressing with our diversified renewable energy platform, including incremental biomethane output at La Galera and the construction of a new renewable industrial heating project. Together, these steps form part of a coherent strategy focused on margin quality, business diversification and operational resilience. As always, our investment approach remains disciplined, prioritizing long-value term creation, cost effectiveness, and alignment with European sustainability goals. Following parts prices in slide 6, we think that the part market is at a transitional moment. Prices in Europe dropped to 1,060 gross per ton, effectively close to marginal cost of part of the industry, impacted by US tariff uncertainties.

Historically, this low price level should signal a potential future recovery.