Altri SGPS — Earnings Release 2021

Mar 17, 2022

E A R N I N G S A N N O U N C E M E N T ( u n a u d i t e d i n f o r m a t i o n )

This document is a translation of a document originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards adopted in European Union (IFRS-EU), some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.

Index

Business Separation – Pulp and Energy	3
Highlights of 2021	4
Message from the CEO	5
Operational and Financial Performance	6
Pulp Segment Altri Group	6 8
Sustainability	10
Perspectives	11
Annexes	12
Description of Altri Group Pulp Mill's Maintenance Downtime Schedule Financial Debt Maturity Profile Quarterly Income Statement	12 13 13 14

Business Separation – Pulp and Energy

In line with the information provided in the quarterly financial report made public on November 18, 2021, ALTRI carried out a study on the optimization of the shareholding held by it in the share capital of its subsidiary GREENVOLT – ENERGIAS RENOVÁVEIS, S.A. (GREENVOLT), a study that - after analyzing the impacts and advantages of a total separation of the pulp and renewable energy businesses - concluded that this separation is feasible, once it will constitute an adequate response to the optimized evolution of the companies in question, adjusted to the reality underlying their businesses and their prospects for development.

ALTRI holds a direct and indirect global shareholding, representing the share capital and voting rights of GREENVOLT in 58.72%, directly holding a shareholding corresponding to 43.27% (consisting of 52,523,229 shares) and, indirectly, through its subsidiary Caima Energia – Empresa de Gestão e Exploração de Energia, S.A. (CAIMA ENERGIA), a stake corresponding to 15.45% (holding 18,750,000 shares).

The Board of Directors of ALTRI will propose, at the Annual General Meeting of 2022, under the conditions that the respective proposal will present, the distribution to ALTRI shareholders of a maximum number of shares corresponding to 52,523,229 GREENVOLT shares, and which corresponds to the interest that ALTRI currently holds directly.

It is the understanding of the Board of Directors of ALTRI that the proposed distribution will deserve the approval of the Company's shareholders, first of all because it believes that the shareholders will not only agree, but also will consider essential, for the reasons already mentioned, the total separation of the pulp and energy businesses renewable. This understanding of the Board of Directors is reinforced by the unanimous approval that the shareholders gave to the distribution of GREENVOLT shares that took place under the terms resolved at the Annual General Meeting of 2021, although with specific features in the context of the Initial Public Offering (IPO), not necessarily coincide with the distribution to which we are now referring, but which allows us to conclude that the distribution process is accepted and desired by shareholders and is awaited with satisfaction by the market in general.

The delivery of shares to the shareholders will hopefully take place within a period of no more than 30 days from the date of the resolution (that is, within a period always less than 12 months after December 31, 2021). In this sense, GREENVOLT is presented in this consolidated financial information as a group of assets classified as held for distribution to shareholders, with reference to December 31, 2021.

Highlights of 2021

Pulp Segment

Altri Group achieved record levels in Pulp Production and Sales in 2021, with Production reaching 1,126 thousand tons and Sales 1,153 thousand tons.

Total revenues for Altri Group reached € 793.4 M during 2021, an increase of 38.0% vs 2020, benefiting from a favorable pulp price environment and from the increase of volumes sold.

2021 EBITDA increased 132.7% to € 227.7 M, which implies a 28.7% margin. This performance shows the continuous search for efficiency improvement in the various plants of the Altri Group, despite the inflation of various costs that was felt in the second half of the year.

Altri Group's Net Profit recorded € 123.7 M in 2021, an increase of 400.7% when compared to 2020 and excluding GreenVolt, which is now considered a 'Discontinued Operation' for the purposes of reporting financial information of the Altri Group.

The Altri Group's Net Debt at the end of 2021 was around € 344.0 M, a very comfortable level that implies a Net Debt/EBITDA ratio of 1.5x.

In the last quarter of the year, Altri Group announced the signing of a MoU (Memorandum of Understanding) with a public-private consortium in the autonomous region of Galicia, to study the construction of a new industrial unit for Dissolving Pulp and Sustainable Textile Fibers with an annual production capacity of 200,000 tons.

Message from the CEO

The year 2021 was another year of strong growth for the Altri Group. Despite all the constraints arising from the pandemic, with high restrictions in terms of logistics in global terms, we were once again able to surpass ourselves, reaching levels of production of cellulosic fibers, but also of turnover levels, unparalleled in the history of our Company.

These results are consequence of the daily commitment of our people, but also of our partners, suppliers and customers. They are also a reflection of the continuous investment that the Altri Group has made in its production units in Portugal, at Celbi, Caima and Biotek, making them increasingly efficient, responding to the growing demand for our products worldwide.

This growth was, however, achieved in a balance between economic, social and environmental sustainability. We seek to create value for all our stakeholders by complying with the best practices in the forestry sector, investing in forest certification and implementing measures that stimulate biodiversity, in line with the 2030 Commitment assumed by the Altri Group.

It is this unique positioning that led the Altri Group to be selected by the Galician authorities to develop a unique project for the production of sustainable cellulosic textile fibers. It is a project that, if implemented, will make a strong contribution to the replacement of synthetic fibers, of fossil origin.

We are also reducing our dependence on energy from fossil sources. Caima will soon become the first Iberian producer of cellulosic fibers free of fossil fuels, and the Group, as a surplus producer of energy, is switching to the energy market regime.

This is one of the measures implemented to face a year that appears to be full of challenges. This shift to an energy market regime will have a positive impact during the first quarter of 2022, allowing us to mitigate the effects of the rise in energy prices as a result of the tragedy that is being experienced in Ukraine where millions of innocent people are suffering from an unjustifiable Russian military operation.

The war scenario increases uncertainty, aggravating logistical constraints at a global level, which were already being felt, and pushing energy prices to historic highs at a time when difficulties in the value chains of several industries were already creating inflationary pressures. We will continue to focus on managing and optimizing our business in a sustainable way, with the aim of keeping creating value for all our stakeholders.

José Soares de Pina

Operational and Financial Performance

Pulp Segment

The global demand for Pulp during 2021 showed a decrease of 3.2%, with the demand for Hardwood Pulp decreasing by around 4.1% compared to the same period of 2020, according to the PPPC (World Chemical Market Pulp Global 100 Report- December 2021).

The region with the greatest change was Western Europe with an acceleration of demand of 5.0%, still not enough to offset the decrease in demand from China (-12.1%). Western Europe benefited from a strong increase in demand for Printing and Writing (P&W) paper accompanied by a general post-pandemic economic recovery, which benefited most paper segments. On the other hand, China showed some slowdown in demand, with the influence of several external factors that ended up having a relevant impact. Logistical restrictions were one of these factors, given the low availability of ships and the sharp increase in world sea freight prices, limiting exports of paper produced in China (and consequent consumption of pulp). Additionally, the energy crisis led the Chinese Government to enact restrictions on the operation of several industries, in which the Paper industry is included. 000' Tons 2020 2021 Var.% Sulphite 110 111 0.9% Unbleached Sulphite 2,317 2,762 19.2% Bleached Softwood Sulphate 25,992 24,977 -3.9% Bleached Hardwood Sulphate 37,895 36,345 -4.1% North America 3,281 3,313 1.0%

enough to offset the decrease in demand from China (-12.1%). Western Europe benefited from a strong
increase in demand for Printing and Writing (P&W) paper accompanied by a general post-pandemic
economic recovery, which benefited most paper segments. On the other hand, China showed some
slowdown in demand, with the influence of several external factors that ended up having a relevant impact.
Logistical restrictions were one of these factors, given the low availability of ships and the sharp increase in
world sea freight prices, limiting exports of paper produced in China (and consequent consumption of pulp).
Additionally, the energy crisis led the Chinese Government to enact restrictions on the operation of several
industries, in which the Paper industry is included.
Pulp Global Demand by Region
Bleached Softwood Sulphate	25,992	24,977	-3.9%
Bleached Hardwood Sulphate	37,895	36,345	-4.1%
Hardwood per region
North America	3,281	3,313	1.0%
Western Europe	7,822	8,213	5.0%
Eastern Europe	1,526	1,525	-0.1%
Latin America	2,617	2,662	1.7%
Japan	878	977	11.2%
China	15,891	13,974	-12.1%
Rest of Asia/Africa	5,692	5,489	-3.6%
		191	1.6%
Oceania	188

Pulp Global Demand by Region

One of the important factors to check the balance of demand and supply of Pulp in the European market is the level of stocks in European Ports. We see that this level of stocks has continued to decline monthly since September 2021, and in January 2022 it is close to the lows of the last twelve months. The level of stocks recorded in January 2022 represents a decrease of 12% compared to the same period in the previous year and around 28% below the average level of the last three years. Despite being partially explained by some global logistical constraints, these stock levels show that the European Pulp market continues with a very healthy level of demand.

Pulp Stocks in European Ports
Mil Tons	2019	2020	2021	Nov-21	Dec-21	Jan-22
Stocks (EU Ports)	1.912	1.542	1.198	1.178	1.132	1.113
Note: Monthly end-of-period stocks. Monthly average for annual values. Source: Europulp (Federation of the National Associations of Pulp Sellers in Europe).

Pulp Stocks in European Ports

At the end of 2021, Pulp price (BHKP) in Europe was at 1,140 USD/ton, a level that remained stable during 4Q21 and practically the entire 3Q21. Despite the decline in pulp prices in China during 3Q21, the strong demand for pulp in Europe by European paper producers led to the maintenance of prices. In China, pulp (BHKP) prices started to recover during 4Q21, reducing the difference to the price practiced in the European market. US\$/ton 2017 2018 2019 2020 2021 1Q21 2Q21 3Q21 4Q21 Avg. Pulp Price (BHKP) 819 1.037 858 680 1.014 767 1.009 1.138 1.140

BHKP Pulp Price Evolution in Europe (2017 to 2021)

			2021

Source: FOEX.

Dissolving Pulp (DP), targeted for textile use and mainly used in Asia, recorded a global demand increase of 14% in 2021, recording a new maximum of 6.8 million tons, according to the Pulp and Paper Products Council (PPPC), Global DP Demand Report – December 2021. This increase was driven by the post-pandemic recovery in Asia. DP prices followed the general upward movement of pulp prices in 2021, with some slowdown at the end of 3Q21 and 4Q21, given some cooling felt in China and production restrictions by the local government.

Altri Group

Operational Performance

Total volume of Pulp produced in 4Q21 achieved 259.8 thousand tons, a decrease of 4.8% vs 4Q20 mainly due to Celbi's maintenance downtime scheduled in October. In terms of Pulp sales, the volume recorded around 268.7 thousand tons in 4Q21, a slight decrease of 0.9% compared to the same period of 2020.

Operational Indicators (Quarters)

000' tons	4Q21	4Q20	4Q21/4Q20	3Q21	4Q21/3Q21
Production Pulp BHKP	235.8	251.4	-6.2%	271.5	-13.1%
Production Pulp DWP	23.9	21.6	10.9%	23.5	1.8%
Total Production	259.8	272.9	-4.8%	295.0	-11.9%
Pulp Sales BHKP	255.9	254.3	0.7%	264.0	-3.0%
Pulp Sales DWP	12.8	17.0	-24.9%	25.1	-49.2%
Total Sales	268.7	271.3	-0.9%	289.1	-7.1%
Total volumes of pulp produced in 2021 recorded an absolute record of 1.126 thousand tons, an increase of 2.2% vs 2020. Sales in the same period also achieved a record, amounting around 1.153 thousand tons (+5,0% vs 2020).
Operational Indicators (Annual)
000' tons	2021	2020	2021/2020
Production Pulp BHKP	1,029	1,010	1.9%
Production Pulp DWP	97	92	5.6%
Total Production	1,126	1,102	2.2%
Pulp Sales BHKP	1,060	997	6.3%
Pulp Sales DWP	93	101	-7.6%

Operational Indicators (Annual)

Production Pulp DWP	23.9	21.6	10.9%	23.5	1.8%
Total Production	259.8	272.9	-4.8%	295.0	-11.9%
Pulp Sales BHKP	255.9	254.3	0.7%	264.0	-3.0%
Pulp Sales DWP	12.8	17.0	-24.9%	25.1	-49.2%
Total Sales	268.7	271.3	-0.9%	289.1	-7.1%
2.2% vs 2020. Sales in the same period also achieved a record, amounting around 1.153 thousand tons (+5,0% vs 2020). Operational Indicators (Annual)
Production Pulp BHKP	1,029	1,010	1.9%
Production Pulp DWP	97	92	5.6%
Total Production	1,126	1,102	2.2%
Pulp Sales BHKP	1,060	997	6.3%
Pulp Sales DWP	93	101	-7.6%

Financial Performance

As previously mentioned, Altri Group started to consider the activity of GreenVolt as a 'Discontinued Operation' in terms of reporting financial information. As such, the financial information presented is essentially focused on the Pulp activity.

Total revenues of Altri Group amounted to € 793.4 M during the year of 2021, a 38.0% increase vs 2020, as a result of the more favorable pulp price environment and increased sales volume. EBITDA recorded € 227.7 M, +132,7% vs 2020 with an EBITDA margin of 28.7%, +11.7 p.p. when compared to the same period of 2020. The net profit of Altri Group, already excluding GreenVolt, achieved € 123.7 M, a significant increase comparatively to the € 24.7 M recorded in 2020.

Income Statement (Annual)

(e) EBIT margin = EBIT / Total revenues

(f) Net Profit from discontinued operations is related with the GreenVolt activity

Investment

The total net investment¹ made by the Altri Group during 2021 was € 26.1 M, a decrease when compared to the € 34.0 M in 2020.

Financial Net Debt

The Altri Group's net debt² at the end of 2021 was around € 344.0 M, which is equivalent to a Net Debt/EBITDA ratio of 1.5x.

¹ Total net investment: Payments in the period relating to acquisitions of property, plant and equipment related to the operational activity of the Pulp and Energy segments.

² Nominal remunerated net debt: Bank loans (nominal amounts) + Other loans (nominal amounts) - Cash and cash equivalents.

Sustainability

Altri has defined four strategic development vectors that focus its activity and its future investments:

• To Value the People
• Focus on Operational Excellence and Technological Innovation
• Develop and Enhance the Forest
• Affirming Sustainability as a Competitiveness Factor

Based on this strategy, the main sustainability objectives for the Group were identified, in line with the Sustainable Development Goals (SDGs) of the United Nations, and with the expectations of our stakeholders, resulting in the definition of the "2030 Commitment" of the Altri Group. Every quarter we see progress towards a more sustainable Group, of which we would highlight the following initiatives in 4Q21:

• The Altri Group signed the manifest to promote innovation, economic development and sustainability for Portugal. With the signing of this document, the commitment is assumed to develop work in line with the Sustainable Development Goals (SDGs), stipulated by the United Nations for 2030, with the Paris Agreement, signed globally, and with the European Ecological Pact.
• Altri Group has integrated the United Nations accelerator program for gender equality (Target Gender Equality) in business leadership.
• In environmental management, the Altri Group achieved the status of 'Leadership' in the CDP (Disclosure, Insight, Action) ranking, achieving an A- rating in the fight against climate change. This ranking represents an increase compared to the previous assessment.
• ESG Risk Ratings from Sustainalytics assigned to Altri Group a 'Low Risk' rating, an improvement over the previous rating. This classification places Altri Group in the worldwide top 10 in the Pulp and Paper sector in terms of sustainability.
• Altri Group made a significant investment (€40 M) that will make Caima the first Iberian producer of cellulosic fibers free of fossil fuels. The installation of a new biomass boiler will allow Caima to abandon fossil fuels throughout its production process, in order to guarantee total energy autonomy from exclusively renewable sources, becoming the first Iberian company in its sector to achieve this historic mark.

Perspectives

Pulp demand continues to show strong dynamics in Europe at the beginning of 2022, especially for end-use Printing and Writing Paper (P&W) and Tissue. The strong demand for Pulp combined with the low availability, visible from the low levels of stocks in European ports, has already led to two price increases, announced for February (US\$30) and March (US\$ 30), to US\$1,200/ton.

In terms of supply, logistical constraints continue to be an issue. More recently, the war in Ukraine and the sanctions imposed on Russia by several Western countries should contribute to worsen logistical constraints and add inflation of some variable costs. The prolonged strikes in the sector in Northern Europe are also a factor with a relevant impact on the dynamics of the European market.

On the cost side, the generalized inflation of productive factors is a challenge that we intend to manage in the best possible way. Since the increase in energy costs was the main negative factor during 4Q21, Altri Group decided to change the regulated cogeneration energy regime to the market regime, which will have a positive impact already in the 1Q22, given its status as surplus energy producer.

The Galicia project continues to develop rapidly, with environmental impact, economic feasibility and engineering studies being initiated with our partners at Impulsa, the public-private consortium in the Galicia region with whom we have signed the Memorandum of Understanding (MoU) to exclusively study the construction of an industrial unit from scratch with an annual production capacity of 200,000 tons of dissolving pulp and sustainable textile fibers. We expect to the able to announce the final location of the project in the short term.

Annexes

Description of Altri Group

Altri is a reference in European eucalyptus pulp producers. In addition to pulp production, the Group is also present in the renewable power production business from forest base sources, namely industrial cogeneration through black liquor and biomass through its subsidiary GreenVolt. The forestry strategy is based on the full use of all the components provided by the forest: pulp, black liquor and forest wastes.

Currently, Altri manages around 88 thousand hectares of forest in Portugal, entirely certified by the Forest Stewardship Council® (FSC® -C004615) and by Programme for the Endorsement of Forest CertificationTM (PEFCTM), two of the most acknowledged certification entities worldwide.

Currently, Altri has three pulp mills in Portugal, with an installed capacity that, in 2020, reached more than 1.1 million tonnes/year of eucalyptus pulp.

Altri's current organic structure at the end of 2021 can be represented as below.

(a) Presented in this consolidated financial information as a Group of assets classified as held for distribution to shareholders, with reference to December 31, 2021.

Pulp Mill's Maintenance Downtime Schedule Mill 2021 Status Celbi No downtime - Biotek May Scheduled Caima October Scheduled

In terms of stoppages for maintenance during 2022, the schedule is as follows:

Source: Altri.

Financial Debt Maturity Profile

Source Altri. Amounts in € M. Note: Commercial Paper renewable with multi-year maturity

Quarterly Income Statement

Income Statement (Quarterly)

Quarterly Income Statement
Income Statement (Quarterly)
	4Q21	4Q20
€ M	(Restated with IFRS 5)	(Restated with IFRS 5)	4Q21/4Q20
Total revenues	208.1	136.5	52.4%
EBITDA	49.6	26.3	89.0%
EBITDA margin	23.9%	19.2%	+4.6 pp
EBIT	34.1	12.1	181.4%
EBIT margin	16.4%	8.9%	+7.5 pp
Profit before income tax and CESE of continued operations	26.8	6.3	324.1%
Consolidated net profit of continued operations in the period	33.3	9.3	256.3%
Net profit from discontinued operations	5.0	1.3	271.0%
	38.3	10.7	258.2%
Consolidated net profit for the period
Attributable to:
Equity holders of the parent Non-controlling interests	35.0 3.3	10.7 0.0	227.3% s.s.

(e) EBIT margin = EBIT / Total revenues

(f) Net Profit from discontinued operations is related with the GreenVolt activity

ALTRI, SGPS, S.A.

Head office: Rua Manuel Pinto de Azevedo, 818, Porto Share capital: Euro 25,641,459 Registered in the Oporto Commercial Registry Office under the single registration and tax identification number - 507 172 086