Delivering value

Delivering commitments

June 2017

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 Law 24/1998, of 28 July, on the Securities Market and its regulations. 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.

3

Ence at a glance A hidden value

Leading European eucalyptus pulp (BHKP) producer with close to 1.1 Mn tons of

installed capacity and largest Spanish renewable energy generator with agroforestry

biomass (143 Mw)

Superior eucalyptus pulp demand growth fuelled by tissue consumption mega-trend

(7.6% CAGR 2006-2016)

Strong competitive position in Europe: highly efficient facilities, just in time service and

differentiated offering

Solid earnings secured by stable regulation in the biomass Energy business

Powerful and recurrent cash flow generation: €109 Mn Recurrent Free Cash Flow in

2016 despite lower pulp prices since 2009

Solid balance sheet and strong liquidity: 1.6 Net Debt / EBITDA and €234 Mn cash

available at 31 March 2017

Clear Strategic Plan 2016-2020 on track aiming at doubling EBITDA and increasing its

resiliency through investments in both the Pulp and Energy businesses

Supportive shareholder base with strong entrepreneurial track record

27,5%

6,3%

5,6%

5,7%0,5%

54,4%

Retos Operativos XXI, S.L. Asúa Inversiones S.L.

Alcor Holding, S.A. Fuente Salada S.L.

Treasury Stock Free float

4

Supportive shareholder base With a strong entrepreneurial track record

Shareholding structure (31/05/2017) Board of directors

Juan Luis Arregui (Retos Operativos XXI), Chairman of the Board, founder of Gamesa

and former Vice Chairman of Iberdrola

Mr. Ignacio de Colmenares

CEO y Vice Chairman

Mr. Juan Luis Arregui

Chairman

Mr. Oscar Arregui

Mr. Javier Echenique

Mr. Pascual Fernández

Mr . Luis Lada

Mr . Jose Carlos del

Álamo

Mr. Fernando Abril-

Martorell

Mrs. Isabel Tocino

Mr. José Guillermo Zubía

Mr . Pedro Barato

Mr. Victor Urrutia

Mr. Jose Ignacio Comenge

5

Pulp & Energy Two complementary and isolated businesses

2016 EBITDA breakdown

• Leading European producer with c. 1.1

Mn tons of installed capacity

• Cyclical business largely dependent on

USD based global pulp prices

• Based on Ence`s wood supply

management expertise

• Strong operating know –how and efficient

facilities with c.60 years experience

• Maximum leverage policy 2.5x Net Debt /

EBITDA, long term capital market financing

and high liquidity

75% 25%

• Largest operator in Spain with 143 MW

of installed capacity

• Regulated business with high visibility and

attractive returns

• Based on Ence`s agroforestry biomass

supply management expertise

• Strong operating know –how and efficient

facilities with c.20 years experience

• Maximum leverage policy 5.0x Net Debt /

EBITDA, non recourse bank project

financing and sufficient liquidity

Pontevedra

Navia

Huelva

Mérida

Facilities Location

Eucalyptus pulp production Biomass energy generation

Ciudad Real

Jaen

Taylor made management policy per business and ring fenced financing

6

Chemical Market Pulp industry 59 million tons in 2016

Ence is the leading European hardwood pulp producer with c. 1.1 Mn tons of installed capacity,

competing in the global Chemical Market Pulp industry

Total Paper Grade

fiber consumption

414 Mn Tons

Fiber Source Pulp Processing Integrated vs.

Market Pulp

Pulp Type

Recycled

fiber:

244 Mnt

Virgin Pulp:

170 Mnt Chemical:

142 Mnt

Mechanical:

28 Mnt

Source: RISI – Jan 2017; PPPC G-100 Dic 2016

Market:

59 Mnt

Integrated:

83 Mnt Softwood and

other:

27 Mnt

32 Mnt Hardwood

Chemical Market Pulp

industry

7

Hardwood pulp vs. Softwood pulp Eucalyptus pulp is cheaper to produce than softwood pulp

Most hardwood pulp comes from eucalyptus wood

Best suited for paper products with high smoothness,

opacity and uniformity (i.e. tissue)

Softwood pulp (BSKP)

Eucalyptus only grows under very specific climate conditions, usually in warm subtropical regions.

More abundant pines are better adapted to cold climates

Low production cost High production cost

Substitutive

materials

80%

of final paper

products allow

for different

proportions of

both pulp

types

Hardwood pulp (BHKP)

Forestry yield: 12 – 18 m3 / ha / year

Harvesting cycle: 12 - 15 years

Industrial yield: 2.6 – 3.0 m3 / ton of pulp

Iberian Globulus

Most softwood pulp comes from pine wood

Best suited for paper requiring higher durability and

strength (i.e. printing & writing)

Forestry yield: 2 – 4 m3 / ha / year

Harvesting cycle: 50 - 70 years

Industrial yield: 4.8 - 5.2 m3 / ton of pulp

Nordic Scots pines

8

Tight global Market Pulp supply and demand balance Global demand reached 94% of capacity in 2016

China, Europe and North America are net importers of hardwood pulp (BHKP)

2

20

3

Demand Supply

3

Rest of the World

6 7

7 3

Demand Supply

13 10

Softwood pulp (BSKP)

Hardwood pulp (BHKP)

Source: RISI – Jan 2017; Hawkins Wright - Dec 2016; PPPC G-100 - Dic 2016

China

11

8

Demand

19

Western Europe

9 4

7

8

Supply

12

South America

23

4 2

4 14

Demand Supply

North America

8

16

(Mn Tons)

Demand

16

Supply

2

9

Superior demand growth for Eucalyptus pulp Which is leading global market pulp demand growth

Last 10 years total market pulp demand evolution

0

5

10

15

20

25

30

35

40

45

50

55

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BSKP: + 1.3% CAGR

The more efficient and best suited eucalyptus pulp is gaining market share against other hardwood and softwood pulp,

following a demand increase of over 10 Mn tons in the last 10 years

Source: PPPC G-100

BHKP: + 3.6% CAGR

+ 2.1% CAGR Mn tons

Last 10 years hardwood pulp demand evolution

5

10

15

20

25

30

35

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BEKP: + 7.6% CAGR

Source: PPPC G-100

Mn tons

Other BHKP: - 2.4% CAGR Other : - 4.9% CAGR

10

Fuelled by tissue consumption mega-trend Linked to increasing living standards in developing countries

24

15 15

11

6 5 5

3 1 1 0,1

NorthAmerica

WesternEurope

Japan Oceania Latam EasternEurope

China MiddleEast

OtherAsia

Africa India

Tissue paper per-capita consumption (kg/year)

85% of world population 15%

59% of Ence pulp sales are oriented to the fastest

growing tissue market, which has increased by

c.10 Mn tons in the last 10 years

3,0%

2,5%

1,5%

-1,4%

-4,6%

-5,0% -3,0% -1,0% 1,0% 3,0%

End global paper market demand growth

(CAGR 2005 – 2015)

Tissue

Specialties

Packaging

P&W

Newsprint

Ence 2016 pulp sales by end paper market

Packaging: 2%

Tissue: 59% Specialties: 31%

P&W: 8%

Source: RISI

Source: RISI

11

High demand growth requires pulp capacity additions Hardwood pulp demand average growth of 1.4 Mn tons per year

Tight global supply and demand balance should be maintained in the coming years

Eucalyptus pulp annual demand and supply increase

(2013 – 2016)

Source: Ence estimates Source: PPPC G-100; PPPC SRN Feb 2017

1,3

1,6

1,1

1,7

1,4

0,8

1,3 1,3 1,3 1,2

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2013 2014 2015 2016 Average

Demand Supply

Mn Tons

Expected hardwood pulp annual supply and demand increase

(2017 – 2019)

1,4 1,5

1,4 1,4

0,6

1,2

0,6 0,8

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2017E 2018E 2019E Average

Demand Supply

Mn Tons

0

100

200

300

400

500

600

700

800

900

1000

Tight market supports strong pulp prices Pulp prices recovery to continue on favorable supply and demand balance

12

European Pulp Prices

BHKP ($/t) BSKP ($/t)

2012 2013 2014 2015 2016

Net BHKP Prices China vs. Europe

603 633

Europe China

USD / t

Ence has announced a list price

increase of +40 $/t, up to 850 $/t, as

from June

Price increase of +20 $/t in January

Price increase of +35 $/t in February

Price increase of +30 $/t in March

Price increase of +30 $/t in Abril

Price increase of +40 $/t in May

+ 30 $/t

Prices as of 20 June 2017

Net BHKP prices in China still 30 $/t above those in Europe

13

Favorable hardwood supply and demand balance expected Long term visibility on new pulp projects

Any new greenfield pulp project takes from 3 to 6 years to be completed

Expected Annual Increase for Global Market Hardwood Supply and Demand (Mn t)

APP OKI project ramp up is proving to be more

gradual than analyst expectations

Capacity conversions to other pulp grades

accelerating

Recurrent unexpected downtime / closures and

conversions

BHKP prices in Europe have recovered over

$160/t since the beginning of the year

Main BHKP producers have announced additional

price increases up to 850 - 860 $/t in Europe as

from June

Mn t 2017 2018 2019 2017 - 2019

ESTIMATED BHKP DEMAND INCREASE 1,4 1,5 1,4 4,3

China 1,0 1,0 1,0 3,0

Other Asia / Africa / Oceania / Middle East 0,1 0,2 0,2 0,5

Europe 0,1 0,1 0,1 0,3

North America 0,1 0,1 0,0 0,2

Latin America 0,1 0,1 0,1 0,3

ESTIMATED BHKP SUPPLY INCREASE 0,6 1,2 0,6 2,4

APP (OKI) 0,8 1,0 0,4 2,2

FIBRIA (TRES LAGOAS) 0,4 1,3 0,2 1,9

KLABIN (PUMA) 0,5 0,5

ENCE (NAVIA & PONTEVEDRA) 0,1 0,1

SUZANO (IMPERATRIZ, MUCURI & MARANHAO) -0,1 0,2 0,1

METSA (AANEKOSKI) 0,1 0,1

UPM (KYMI) 0,1 0,1

TAIWAN P&P and RFP (Calhoun) -0,1 -0,1

APRIL (RIZHAO) -0,4 -0,3 -0,7

APRIL (KERINCI) -0,3 -0,4 -0,7

OTHER UNEXPECTED DOWNTIME / CLOSURES

AND CONVERSIONS-0,5 -0,3 -0,3 -1,1

BALANCE 0,8 0,3 0,8 1,9

14

Softwood supply and demand will also remain balanced Long term visibility on new pulp projects

Any new greenfield pulp project takes from 3 to 6 years to be completed

Expected Annual Increase for Global Market Softwood Supply and Demand (Mn t)

BSKP supply and demand will also remain

balanced for the coming years

BSKP prices in Europe have recovered close to

$70/t since the beginning of the year

Main BSKP producers have announced additional

price increases up to 910 $/t in Europe as from

June

Mn t 2017 2018 2019 2017 - 2019

ESTIMATED BSKP DEMAND INCREASE 0,5 0,4 0,5 1,4

China 0,4 0,3 0,4 1,1

Other Asia / Africa / Oceania / Middle East 0,1 0,1 0,1 0,3

Europe 0,0 0,0 0,0 0,0

North America 0,0 0,0 0,0 0,0

Latin America 0,0 0,0 0,0 0,0

ESTIMATED BSKP SUPPLY INCREASE 0,3 0,4 0,2 0,9

METSA (AANEKOSKI) 0,1 0,6 0,7

SCA (OSTRAND) 0,1 0,4 0,5

SVETLOGORSKY (BELARUS) 0,2 0,1 0,3

SODRA (VARO) 0,2 0,2

DOMTAR (ASHDOWN + PLYMUTH) 0,1 0,1

IP (RIEGELWOOD) 0,1 0,1

CLEARWATER (LEWINSTON) 0,1 0,1

KLABIN (PUMA) 0,1 -0,1 0,0

STORA (SKUTSKAR) -0,1 -0,1 -0,2OTHER UNEXPECTED DOWNTIME / CLOSURES

AND CONVERSIONS -0,3 -0,3 -0,3 -0,9

BALANCE 0,2 0,0 0,3 0,5

15

New capacity managed by incumbents In a concentrated supply market

Softwood pulp (BSKP) global market share

Top 10 softwood pulp producers account for 65% of

global BSKP market share

Hardwood pulp (BHKP) global market share

Source: RISI 2016 Source: RISI 2016

International Paper:

12%

Koch Ind.: 9%

Arauco: 7%

Paper

Excellence: 6% Sodra: 5%

All other: 36% Fibria +

Klabin: 19%

APRIL: 11%

Suzano: 10%

CMPC: 9%

Arauco: 6% El dorado:

5%

All other: 29%

UPM: 5%

Cenibra: 3%

Ence: 3%

Mercer: 6%

Ilim: 5%

Stora: 4%

Top 10 hardwood pulp producers account for 74% of

global BHKP market share

Altri: 3%

Domtar: 5%

Metsa: 6%

16

Iberian pulp is the most competitive in Europe

Narrowing the gap with Latams and widening it with Nordics

-

50

100

150

200

250

300

350

400

450

500

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

80% of softwood pulp demand could be substituted with hardwood pulp

Estimated delivered cash cost

for the European pulp market

€ / Ton

Mn Tons

Source: Hawkins Wright (April 2017)

At current exchange rates:

• 1,1 $/€

• 3,1 BRL/$

Western European Pulp Market:

16 Mn Tons

BSKP

BHKP

Source: RISI, EPIS, Ence

Demand Source

7

9

7

2

5

300

340 365

404

2

LATAM

(BHKP)

IBERIA

(BHKP)

NORTHERN.EUR

(BSKP)

NORTHERN.EUR

(BHKP)

Mn Tons

17

Ence has well located and highly efficient facilities

Focused on cash cost reduction

Ence will become the most competitive pulp producer in Europe by 2020

Ence Current and Expected Cash Cost Reduction

2014a 2015a 2016a 1T17a 2017e 2018e 2019e 2020e

405.6

359.0 356.7

339 337 329

325

STRATEGIC PLAN

343.6

18

Just in time service and differentiated offering Ence key competitive advantages in the Pulp business

Just in time service

High client diversification

> 100 customers

JIT short shipping

deliveries (5-7 days)

Smaller coastal vessels

Tailor made products

TCF + ECF qualities

7 de-commoditized products

High White

High Porosity

Low Fibre Bundles

High Softness High Bulk

Low Energy Refining

High Stability

Premium

Pulp

50 days / 36€/t

JIT deliveries and de-commoditized products strengthen Ence's positioning among its diversified client base

19

Ence is also the largest agroforestry biomass player in Spain With 143 MW of installed capacity and another 40 MW under construction

Ciudad Real 16 Mw

Fuel: agro waste

Jaen 16 Mw

Fuel: agro waste

Huelva 40 Mw PROJECT

Fuel: agro waste

EBITDA: €11Mn

Mérida 20 Mw

Fuel: agroforestry waste

Huelva 50 Mw

Fuel: agroforestry waste

Huelva 41 Mw

Fuel: agroforestry waste Start up: 01/2020

Capex: €87 Mn

Financing: 60%

Ence´s Energy business strengthens its resilient business model

20

Energy business earnings secured by stable regulation Feed in tariffs to cover all the operating costs of a standard plant

48.1 46.6 47.0

37.6 36.5 36.8

30

35

40

45

50

55

60

2017 2018 2019

Average Cap Average Floor

54.2 55.5 55.7

43.5 43.7 42.2

50.3

38.2

30

35

40

45

50

55

60

2014 2015 2016

Average Cap Average Floor Real pool price

€ / Mwh € / Mwh

Regulated pool price collar 2014-2016 Regulated pool price collar 2017-2019

Average remuneration for operations (Ro): €49 /MWh 1 Average remuneration for operations (Ro): €55 /MWh

Minimum 7.4% regulated return on investment (Ri), for a “standard” plant

Includes Ciudad Real 16 Mw and Jaen 16 Mw

21

Successful agro waste biomass diversification Ence key competitive advantage in the Energy business

Weight of Forestry and Agricultural Waste Supply

€ 45 Mn EBITDA expected in 2017

86

14

60

40 44 56

2015a 2016a 2017e

Forestry waste (%) Agricultural waste (%)

■ Fruit bones and husk ■ Strains ■ Bushes ■ Prunes ■ Olive marc

22

Powerful and recurrent cash flow generation €109 Mn Recurrent Free Cash Flow in 2016 despite lower pulp prices

2015 2016

$783/t

$697/t

Note: Recurrent free cash flow includes Adjusted EBITDA, change in WC, maintenance CAPEX, interest payments and taxes

Group´s Recurrent Free Cash Flow

maintained in 2016 despite lower pulp

prices since 2009

Low FCF Breakeven supports Ence

strong resiliency

$500/t FCF breakeven price for

2017e

€ 111 Mn € 109 Mn

- 11% Average Pulp

Price Decrease

- 2% FCF

23

Solid balance sheet and strong liquidity 1.6x Net Debt / Adjusted EBITDA as of 31 March 2017

250

5.5 5.5

20.5

8.2 6.1

25.4

2017 2018 2019 2020 2021 > 2021

320.9

194.1

126.8

Gross debt Cash Net debt

12.8 13.4 13.6 13.6 14.5

39.8

0.8 1.0 3.3 3.3 4.1

2.3

2017 2018 2019 2020 2021 > 2021

121.4 107.5

13.8

Gross debt Cash Net debt

Pulp business leverage (March 2017) Pulp business gross debt maturity calendar

Energy business leverage (March 2017) Energy business gross debt maturity calendar

Leverage:

0.4x

€107 Mn Outstanding project Finance

€15 Mn Bilateral loans

€250 Mn bond

€71 Mn bilateral loans

Leverage:

1.9x

24

Strategic Plan 2016-2020 on track To become the most competitive pulp producer in Europe

2015a 2016a 2017e 2018e 2019e 2020e TOTAL

CAPEX (€Mn) 30 37 41 71 82 27 288

Pontevedra (€Mn) 3 7 26 28 37 23 124

Navia (€Mn) 27 30 15 43 45 4 164

Divestment Plan (€Mn) 32 38 6 30 30 35 171

NET CAPEX (€ Mn) -2 -1 35 41 52 -8 117

Pulp Production (000, t) 898 931 972 991 1.040 1.120

Cash cost (€/t) 359 357 339 337 329 325

EBITDA / conservative scenario (€Mn) 1 81 85 107 111 125 139

EBITDA / current scenario (€Mn) 2 165 173 198 204 222 244

1 Based on flat net price of 449 €/t (conservative scenario)

2 Based on net prices of 543 €/t (826 $/t and 1.11 €/$) as of 20 June 2017

Become cost leader and remain quality leader across Europe: 34 €/t cash cost reduction by 2020 down to 325 €/t i

Expand capacity in existing mills, on a conservative basis, based on local wood availability: Pulp production increase up to

1,120,000 t

Capex implementation schedule conditioned to a maximum leverage policy of 2.5x Net Debt/EBITDA

Pulp Business Strategic Plan Summary

25

Strategic Plan 2016-2020 on track Energy business expansion accelerating through M&A

Energy Business Strategic Plan Summary

2015a 2016a 2017e 2018e 2019e 2020e TARGET

CAPEX (€Mn) 325

M&A (€Mn) 22

Greenfield (€Mn) 12 35 30 10

TARGET

EBITDA (€Mn) 31 34 45 78

Consolidate the biomass Energy sector in Europe

Expand into biomass energy projects abroad, where regulatory environment is favorable, with project financing and local

partnering.

EBITDA target of €78 Mn by 2020 to cover most of the Pulp business fixed costs

Capex implementation schedule conditioned to a maximum leverage policy of 5.0x Net Debt / EBITDA

26

Strategic Plan 2016-2020 on track Next Steps

New Huelva 40 Mw biomass power plant 30,000 t capacity expansion in Pontevedra in 2018

New Huelva 40 Mw biomass power plant project

on track to start up in 2H 2019

€11 Mn annual EBITDA target

EPC closing expected in July and early works in

October

Synergies with our 50 Mw and 41 Mw plants already

operating in the same location

Capex: €87 Mn

Financing: 60%

During this quarter’s maintenance pause in Pontevedra,

we have prepared part of the capacity expansion that will

be implemented during March 2018 annual maintenance

shutdown

Pontevedra 2018 Cash Cost target: 371 €/t

Pulp production target 2018: 452 Mn t

Additional 40,000 t capacity expansion in 2019

CAPEX 2017e 2018e

Efficiency capex 8 3

Expansion capex 8 8

Environmental capex 10 12

Delivering value

Delivering commitments