Altri SGPS — Interim / Quarterly Report 2021

Jun 30, 2021

Informação financeira 2012

ALTRI, SGPS, S.A. Public Company

Financial Information – 1 st Quarter of 2021 (Unaudited)

This document is a translation of a document originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards and in accordance with the International Accounting Standard 34 – Interim Financial Reporting, 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.

1

Head Office: Rua Manuel Pinto de Azevedo, 818 – Oporto Fiscal Number 507 172 086 Share Capital: 25,641,459 Euro

1.	HIGHLIGHTS 3
2.	FINANCIAL REVIEW 4
3.	INVESTMENTS 9
4.	DEBT 9
5.	SUSTAINABILITY 10
6.	PULP MARKET 11
7.	ALTRI – Business Profile 12
8.	FUTURE PERSPECTIVES 13

Financial information 1Q21

1. HIGHLIGHTS

• 1.1. Altri Group's First Quarter Activity Summary
  • ✓ Pulp production amounts to 280.4 million tonnes;
  • ✓ Pulp sales amount to 304.6 million tonnes;
  • ✓ Renewable electric energy production through forest biomass amounts to 179.2 GWh;
  • ✓ Exports reach to 119.2 million Euro;
  • ✓ EBITDA of 39.5 million Euro:
    • o 32.7 million Euro in the Pulp segment;
    • o 6.8 million Euro in the Energy segment.
  • ✓ Nominal remunerated debt ¹ of 459.6 million Euro.

During the first quarter of 2021, Altri Group's pulp production reflects a slightly decrease of 0.7% in relation to the first quarter of 2020 and a 2.7% increase comparatively to the fourth quarter of 2020. Pulp sales present an upward trend, namely 6.1% in relation to the first quarter of 2020 and 12.3% over the fourth quarter of 2020.

It should also be noted that the production of renewable electric energy through forest biomass, in the period under analysis, reached about 179.2 GWh, which corresponds to a 2.8% decrease over the first quarter of 2020. This variation is mainly explained by the scheduled annual maintenance stoppage at Constância plant in February and at Figueira da Foz plant in March.

¹ Nominal remunerated net debt: Bank loans (nominal values) + Other loans (nominal values) – Cash and cash equivalents.

Financial information 1Q21

2. FINANCIAL REVIEW

2.1. 1Q2021 Financial Results

The financial information was prepared in accordance with the recognition and measurement principles of the International Financial Reporting Standards, as adopted by the European Union (IFRS-EU).

1Q2021 Income Statement

thousand Euro	1Q2021	1Q2020	1Q21/1Q20 Var%	4Q2020	1Q21/4Q20 Var%
Total revenues (a)	179,203	165,660	8.2%	146,102	22.7%
Cost of sales	86,068	81,037	6.2%	66,501	29.4%
External supplies and services	44,202	42,948	2.9%	37,895	16.6%
Payroll expenses	9,447	9,193	2.8%	9,487	-0.4%
Other expenses	675	1,193	-43.4%	-902	-174.8%
Fair value changes in biological assets	0	0	-	-1,246	-
Provisions and impairment losses	-663	-1,857	-64.3%	-645	2.9%
Total expenses	139,728	132,514	5.4%	111,090	25.8%
EBITDA (b)	39,474	33,146	19.1%	35,012	12.7%
EBITDA margin (c)	22.0%	20.0%	+2.0 pp	24.0%	-1.9 pp
Amortisation and depreciation	-19,780	-19,766	0.1%	-17,812	11.1%
EBIT (d)	19,694	13,380	47.2%	17,200	14.5%
EBIT margin (e)	11.0%	8.1%	+2.9 pp	11.8%	-0.8 pp
Results related to investments	51	120	-57.5%	-20	-
Financial expenses	-3,287	-5,806	-43.4%	-7,724	-57.4%
Financial income	2,861	1,277	124.1%	1,548	84.8%
Financial results	-375	-4,409	91.5%	-6,197	93.9%
Profit before income tax and ESEC	19,319	8,971	115.4%	11,004	75.6%
Income tax	-5,106	-2,156	136.8%	1,680	-
Energy sector extraordinary contribution (ESEC)	-1,016	0	-	-1,998	-49.2%
Consolidated net profit for the period
Attributable to:
Holders of equity in the parent company	13,197	6,815	93.7%	10,690	23.5%
Non-controlling interest	-7	0	-	-4	76.7%

(a) Total revenues = Sales + Services rendered + Other income

(b) EBITDA = Profit before income tax and ESEC, Financial results and Amortisation and depreciation

(c) EBITDA margin = EBITDA / Total revenues

(d) EBIT = Profit before income tax and ESEC and Financial results

(e) EBIT margin = EBIT / Total revenues

Key indicators: Pulp Segment

tons	1Q2021	1Q2020	1Q21/1Q20 Var%	4Q2020	1Q21/4Q20 Var%
BHKP pulp production DWP pulp production	256,520 23,892	259,748 22,584	-1.2% 5.8%	251,358 21,583	2.1% 10.7%
Total pulp production	280,412	282,332	-0.7%	272,941	2.7%
BHKP pulp sales DWP pulp sales	273,186 31,433	254,286 32,897	7.4% -4.4%	254,266 17,018	7.4% 84.7%
Total pulp sales	304,620	287,183	6.1%	271,285	12.3%

The first quarter of 2021 was marked by a recovery in demand in most markets, with several price increases announced during the year 2021, which raised the market price at the date of this press release to 1,090 USD/tad. During the first quarter of the year, the average market price of pulp (BHKP) recorded by PIX was 767 USD/tad, being the price recorded, at the end of March 2021, of 865 USD/tad.

In operational terms, Altri Group's industrial units, produced, during the first quarter, 280.4 thousand tons of pulp (-0.7% comparatively to the same period of 2020). On the other hand, pulp sales reached 304.6 thousand tons, which corresponds to a 6.1% increase over the first quarter of 2020 and a 12.3% increase over the fourth quarter of 2020.

During the quarter under analysis, Altri Group exported 262.7 thousand tons of pulp, which corresponds to 86% of its pulp total sales. In monetary terms, quarterly exports amounted to 119.2 million Euro.

Total revenues associated with pulp production units amounted to approximately 158.1 million Euro, which corresponds to a 10% increase over the first quarter of 2020 and an 8% increase when compared to the fourth quarter of 2020.

In the quarter under analysis, EBITDA of the pulp production units amounted to 32.7 million Euro, which corresponds to an increase of 29% comparatively to the EBITDA recorded in the same period of the previous year.

Key indicators: Energy Segment

Altri Group, through its subsidiary Greenvolt, operates five energy power plants through forest biomass with approximately 97 MW of installed capacity, hence allowing it to consolidate its integration strategy between the forestry sector producing biomass and the production of energy from this renewable resource.

On March 18, 2021, the market was informed about the election of João Manso Neto as Chief Executive Officer (CEO) of Greenvolt and the intention to study the possibility to perform an operation that, subject to market conditions and under the usual terms in similar situations, may culminate in the admission to trading of all the shares representing Greenvolt in the regulated market Euronext Lisbon.

	1Q21	1Q20	1Q21/1Q20	4Q20	1Q21/4Q20
Energy sales GWh	179.2	184.4	-2.8%	176.3	1.6%
Energy sales thousand €	21,142	21,757	-2.8%	20,931	1.0%
EBITDA thousand €	6,766	7,787	-13.1%	8,672	-22.0%

Total revenues associated with the units of energy production through forest biomass, developed through the subsidiary Greenvolt amounted to, in the first quarter of 2021, 21.1 million Euro, which corresponds to a decrease of 2.8% compared to the first quarter of 2020.

EBITDA, in the first quarter of 2021, reached 6.8 million Euro, which corresponds to a 13.1% decrease over the same period of the previous year.

It should be noted that, during the period under analysis, there was a maintenance stoppage in the both industrial units at Constância and Figueira da Foz, which impacted the injected power and the level of costs.

Greenvolt has an ambitious project of national and international growth, intending to consolidate its leadership position in the national market and enhance as a reference player within the renewable energy in the international market, not only through forest biomass, but also through innovative models of solar and wind energy.

Under this goal, on 3 May, Greenvolt entered into a Memorandum of Understanding with the Company incorporated under Polish law V-Ridium Europe, where the parties foresee that V-Ridium Europe will conduct in Greenvolt, in the context of a potential IPO, and on further terms yet to be defined, an increase in Greenvolt's share capital, which may take place as new entries in kind, for a subscription price corresponding to the maximum price interval to be established within the scope of Greenvolt's IPO, based on an assessment of V-Ridium corresponding to 56 million Euro ("Subscription"), and to this amount may be added the amount of 14 million Euro, subject to certain conditions to be agreed between the parties, namely the fulfilment of the Business Plan.

V-Ridium is a company incorporated under Polish law, which operates in the renewable energy sector, being a reference player in this sector and having a pipeline of wind and solar projects, mainly in Poland and Greece, with about 2,800 MW, of which more than 1,500 MW are in advanced stages of development.

1Q2021 Consolidated Results

Altri's total revenues, during the quarter under analysis, reached 179.2 million Euro, corresponding to an increase of about 8.2% compared to the same period of the previous year.

Total operational expenses in the quarter, amounted to 139.7 million Euro, which corresponds to a 5.4% increase over the same period of 2020.

Thus, Altri's Group EBITDA, in the quarter under analysis, reached 39.5 million Euro, a 19.1% increase when compared to the EBITDA recorded in the same period of the previous year.

Altri's Group EBIT amounted to 19.7 million Euro, an increase of 47.2% comparatively with the same period of 2020. The consolidated net profit of the quarter reached 13.2 million Euro.

3. INVESTMENTS

The total net investment² made during the first quarter of 2021 by the Group's industrial units amounted to approximately 7.1 million Euro.

4. DEBT

Altri's nominal remunerated net debt on March 31, 2021, amounted to 459.6 million Euro, which corresponds to a decrease of 15.7 million Euro over the last quarter of 2020.

Debt maturity profile

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

Financial information 1Q21

5. SUSTAINABILITY

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

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

Based on this strategy, the main sustainability objectives for the Group were identified, in line with the United Nations Sustainable Development Goals (SDGs), as well as with the expectations of our stakeholders. These have been identified based on the results of an auscultation carried out at the end of 2020, culminating in the development of the Altri Group's "2030 Commitment".

	2030 Commitment	2018	2030 Goal
	Reduce the specific water use (m3 / tSA) in Altri's industrial units by 50%	20	10
	Reduce the organic load (COD, kg O2 / tSA) in Altri's industrial effluents by 60%	11	4
	Increase by at least 60% the amount of renewable electric energy injected into the National Electricity Network (GWh)	625	1000
	100% of the primary energy consumed at Altri's industrial units is from renewable sources	83%	100%
e	Doubling the number of women in leadership roles	19	38
18	100% of process waste recovered or reused	77%	100%
3 22 0	Reduce specific GHG emissions of scope 1 and 2 by 60% (kg CO2 / tSA)	192	66
n O	Reduce scope 3 emissions by 30% (kg CO2/tSA)	292	202
18	Increase the percentage of wood consumption with forest management certification by 40%	57%	80%
រូបរ	Duplicate the area under natural conservation management (ha)	7980	16000
ﺘﻜﻨﺎ ﺍﻟ	Develop 13 biodiversity stations and biospots	2	15
机	Walk towards zero accidents with lost days *		Continuous improvement in order to achieve this goal

Financial information 1Q21

6. PULP MARKET

According to data from the Pulp and Paper Products Council (PPPC), World Chemical Market Pulp Global 100 Report, February 2020, the cumulative total demand for the first two months of 2021 of hardwood pulp decreased 2.5% compared to the same period of 2020. The inventory days on hand at hardwood pulp producers were 35 days at the end of February 2021, which corresponds to a decrease of 8 days compared to the level of inventories that occurred a year ago.

In terms of sales price, the benchmark is registering a significant recovery, being, at the date of this press release, at 1,023 USD/tad. However, the announced market price is 1,090 USD/tad, a value that is a record in terms of prices of sales of hardwood pulp.

7. ALTRI – Business Profile

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. 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 86.3 thousand hectares of forest in Portugal, entirely certified by the Forest Stewardship Council® (FSC®) ³ 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 can be represented as follows:

Financial information 1Q21

8. FUTURE PERSPECTIVES

The current context, although still characterised by a pandemic scenario, is globally optimistic in the medium term, which has resulted in an increase in demand and, consequently, an increase in prices.

Altri Group will continue to develop a set of projects that seek to continuously improve, essentially based on the digital field, which aim to reinforce the efficiency of its production units.

In the Energy Segment, Altri Group, through its subsidiary Greenvolt, will carry on its ambitious project of national and international growth. Greenvolt intends to consolidate its leadership position in the national market and enhance as a reference player within the renewable energy in the international market, not only through forest biomass – a segment which will continue to be the company's core business, with undoubted skills –, but also through innovative models of solar and wind energy.

In terms of stoppages for maintenance during 2021, the schedule is as follows:

• Celbi: October 2021
• Caima: September 2021
• Celtejo: No stoppage scheduled

Oporto, May 20, 2021

Condensed consolidated financial statements and notes

RELATÓRIO DO CONSELHO DE ADMINISTRAÇÃO

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 AND 31 DECEMBER 2020

(Translation of financial statements originally issued in Portuguese - Note 20) (Amounts expressed in Euros)

ASSETS	Notes	31.03.2021	31.12.2020
NON-CURRENT ASSETS: Biological assets		103,395,776	105,621,199
Property, plant and equipment		514,344,871	523,507,899
Right-of-use assets		66,583,397	65,462,658
Investment properties		82,131	82,131
Goodwill		265,630,973	265,630,973
Intangible assets		51,450,751	52,201,704
Investments in joint ventures and associates	4	806,485	755,583
Other investments		287,944	280,147
Other non-current assets		3,210,260	3,210,260
Derivative financial instruments	11	-	-
Deferred tax assets		26,604,396	27,757,056
Total non-current assets		1,032,396,984	1,044,509,610
CURRENT ASSETS:
Inventories		71,506,182	75,454,614
Trade receivables		93,730,315	64,149,699
Assets associated with contracts with customers		6,697,351	7,476,825
Other receivables Income tax		8,354,269 13,884,066	9,691,305 17,160,243
Other current assets		6,263,124	5,649,993
Derivative financial instruments	11	2,330,084	7,313,870
Cash and cash equivalents	6	238,284,855	254,568,719
Total current assets		441,050,246	441,465,268
Total assets		1,473,447,230	1,485,974,878
EQUITY AND LIABILITIES		31.03.2021	31.12.2020
EQUITY:
Share capital	8	25,641,459	25,641,459
Legal reserve		5,128,292	5,128,292
Hedging reserve		(424,519)	3,515,384
Other reserves		411,012,646	376,043,942
Consolidated net profit/(loss) for the financial year		13,204,368	34,977,248
Total equity attributable to shareholders of the Parent Company		454,562,246	445,306,325
Non-controlling interests		7,436	14,584
Total equity		454,569,682	445,320,909
LIABILITIES:
NON-CURRENT LIABILITIES:
Bank loans	9	27,500,000	27,500,000
Other loans	9	531,279,560	532,417,574
Reimbursable government grants	9	2,942,267	2,942,267
Lease liabilities		67,164,403	65,461,849
Other payables		820,348	-
Other non-current liabilities		9,581,686	10,487,366
Deferred tax liabilities		46,545,958	48,071,097
Pension liabilities		5,180,204	5,180,204
Provisions	10	16,716,895	16,689,458
Derivative financial instruments	11	980,685	1,053,386
Total non-current liabilities		708,712,006	709,803,201
CURRENT LIABILITIES:
Bank loans	9	18,229	2,135,970
Other loans	9	139,787,281	168,869,728
Reimbursable government grants	9	2,847,177	2,847,177
Lease liabilities		9,864,150	9,588,771
Trade payables		110,613,286	104,104,493
Liabilities associated with contracts with customers		2,247,166	3,641,936
Other payables		14,106,100	13,394,102
Income tax		4,705,554	4,705,554
Other current liabilities		24,998,918	21,200,376
Derivative financial instruments	11	977,681	362,661
Total current liabilities		310,165,542	330,850,768
Total liabilities and equity		1,473,447,230	1,485,974,878

The accompanying notes are an integral part of the condensed consolidated financial statements.

CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2021 AND 2020

RELATÓRIO DO CONSELHO DE ADMINISTRAÇÃO

(Translation of financial statements originally issued in Portuguese - Note 20) (Amounts expressed in Euros)

	Notes	31.03.2021	31.03.2020
Sales		177,011,788	163,432,616
Services rendered		986,070	1,014,319
Other income	14	1,204,751	1,213,424
Costs of sales		(86,068,422)	(81,037,724)
External supplies and services		(44,201,774)	(42,947,517)
Payroll expenses		(9,446,679)	(9,192,533)
Amortisation and depreciation		(19,780,220)	(19,766,024)
Fair value changes in biological assets		-	-
Provisions and impairment losses	10	663,124	1,857,170
Other expenses		(674,624)	(1,192,758)
Results related to investments	4	50,902	119,891
Financial expenses	12	(3,287,076)	(5,806,019)
Financial income	12	2,861,062	1,276,573
Profit before income tax and CESE		19,318,902	8,971,418
Income tax		(5,105,682)	(2,155,875)
Energy sector extraordinary contribution (CESE)		(1,016,000)	-
Consolidated net profit for the period		13,197,220	6,815,543
Attributable to:
Holders of equity in the parent company		13,204,368	6,815,639
Non-controlling interests		(7,148)	(96)
		13,197,220	6,815,543
Earnings per share
Basic	13	0.06	0.03
Diluted	13	0.06	0.03

The accompanying notes are an integral part of the condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2021 AND 2020

RELATÓRIO DO CONSELHO DE ADMINISTRAÇÃO

(Translation of financial statements originally issued in Portuguese - Note 20) (Amounts expressed in Euros)

	Notes	31.03.2021	31.03.2020
Consolidated net profit/(loss) for the financial year		13,197,220	6,815,543
Other comprehensive income: Items that will not be reclassified to profit or loss Changes in pension liabilities - gross amount Changes in pension liabilities - deferred tax		- - -	- - -
Items that may be reclassified to profit or loss in the future Changes in fair value of cash flow hedging derivatives - gross amount Changes in fair value of cash flow hedging derivatives - deferred tax Change in exchange rate reserve	11	(5,323,074) 1,383,171 (8,544) (3,948,447)	(2,605,580) 670,114 9,292 (1,926,174)
Other comprehensive income for the period		(3,948,447)	(1,926,174)
Total consolidated comprehensive income for the period		9,248,773	4,889,369
Attributable to: Shareholders in the Parent Company Non-controlling interests		9,255,921 (7,148)	4,889,465 (96)

The accompanying notes are an integral part of the condensed consolidated financial statements.

DO CONSELHO DE ADMINISTRAÇÃO

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2021 AND 2020

(Translation of financial statements originally issued in Portuguese - Note 20) (Amounts expressed in Euros)

		Attributable to shareholders in the Parent Company
				Hedging		Profit and loss		Non-controlling
	Notes	Share capital	Legal reserve	reserves	Other reserves	result	Total	interest	Total equity
Balance as at 1 January 2020 Appropriation of the consolidated result from 2019	8	25,641,459	5,128,292	(2,493,790)	336,927,499	100,826,022	466,029,482	13,453	466,042,935
		-	-	-		100,826,022 (100,826,022)	-	-	-
Total consolidated comprehensive income for the period		-	-	(1,935,466)	9,292	6,815,639	4,889,465	(96)	4,889,369
Balance as at 31 March 2020	8	25,641,459	5,128,292	(4,429,256)	437,762,813	6,815,639	470,918,947	13,357	470,932,304
Balance as at 1 January 2021 Appropriation of the consolidated result from 2020	8	25,641,459	5,128,292	3,515,384	376,043,942	34,977,248	445,306,325	14,584	445,320,909
		-	-	-	34,977,248	(34,977,248)	-	-	-
Total consolidated comprehensive income for the period		-	-	(3,939,903)	(8,544)	13,204,368	9,255,921	(7,148)	9,248,773
Balance as at 31 March 2021	8	25,641,459	5,128,292	(424,519)	411,012,646	13,204,368	454,562,246	7,436	454,569,682

The accompanying notes are an integral part of the condensed consolidated financial statements.

DO CONSELHO DE ADMINISTRAÇÃO

CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2021 AND 2020

Demonstrações financeiras consolidadas condensadas e notas anexas

(Translation of financial statements originally issued in Portuguese - Note 20) (Amounts expressed in Euros)

	Notes	31.03.2021		31.03.2020
Operating activities:
Cash flows generated by operating activities (1)		29,070,394	29,070,394	42,984,581	42,984,581
Investment activities:
Receipts arising from:
Investments		-		48,000
Property, plant and equipment		816		16,141
Investment grants		-		45,140
Interest and similar income		459,433		124,174
Dividends		-	460,249	-	233,455
Payments relating to:
Investments		(1,757,502)		-
Property, plant and equipment		(7,085,042)		(8,033,994)
Intangible assets		-		-
Investment grants		-	(8,842,544)	-	(8,033,994)
Cash flows generated by investment activities (2)			(8,382,295)		(7,800,539)
Financing activities:
Receipts arising from:
Loans obtained		40,000,000		165,000,000
Other financing transactions		1,680,275	41,680,275	-	165,000,000
Payments relating to:
Interest and similar expenses		(3,769,185)		(4,053,482)
Distributed dividends		-		-
Loans obtained		(70,000,000)		(151,019,876)
Reimbursable government grants		-		-
Lease liabilities		(2,175,107)		(8,437,727)
Other financing transactions		(711,856)	(76,656,148)	(1,274,926)	(164,786,011)
Cash flows generated by financing activities (3)			(34,975,873)		213,989
Cash and cash equivalents at the beginning of the period			252,572,629		181,343,914
Cash and cash equivalents variation: (1)+(2)+(3)			(14,287,774)		35,398,031
Cash and cash equivalents at the end of the period	6		238,284,855		216,741,945

The accompanying notes are an integral part of the condensed consolidated financial statements.

1. INTRODUCTORY NOTE

Altri, SGPS, S.A. ('Altri' or 'the Company') is a public company incorporated on 1 March 2005, whose head office is located at Rua Manuel Pinto de Azevedo, 818, in Oporto, and its main activity involves managing shareholdings, while its shares are listed at Euronext Lisbon.

Altri is dedicated to managing shareholdings primarily in the industrial sector, as the parent company of the group of companies shown under Note 4 and referred to as the Altri Group. There is no other company above it that includes these consolidated financial statements. The Altri Group's current activities focus on producing bleached eucalyptus pulp at three production plants and on generating electricity via waste consumption and forest biomass.

Faced with this reality in the Altri Group, its Board of Directors considers there are two business segments, namely, production and commercialization of bleached eucalyptus pulp and electricity generation via waste consumption and forest biomass, being management information also prepared and examined on that basis (Note 15).

The Altri Group's condensed consolidated financial statements are shown in Euros, in amounts rounded off to the nearest Euro. This is the currency used by the Group in its transactions and, as such, is deemed to be the functional currency.

2. MAIN ACCOUNTING POLICIES AND BASIS OF PRESENTATION

DO CONSELHO DE ADMINISTRAÇÃO

The condensed consolidated financial statements, for the period ended on 31 March 2021, were prepared in accordance with IAS 34 – Interim Financial Reporting and include the condensed consolidated statement of financial position, the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows, as well as, the selected explanatory notes. These condensed consolidated financial statements do not include all the information required to be published on the annual financial statements, and should, therefore, be read together with the consolidated financial statements of the Altri Group for the financial year ended 31 December 2020.

The accounting policies adopted for preparation of the attached condensed consolidated financial statements were consistently applied during the periods being compared.

The Board of Directors assessed the capacity of the Company, its subsidiaries, joint ventures and associates to operate on a going concern basis, based on the entire relevant information, facts and circumstances, of financial, commercial or other nature, including events subsequent to the condensed consolidated financial statements' reference date, as available regarding the future. As a result of the assessment conducted, the Board of Directors concluded that it has adequate resources to keep up its operations, which it does not intend to cease in the short term. Therefore, it was considered appropriate to use the going concern basis in preparing the condensed consolidated financial statements.

The attached condensed consolidated financial statements were prepared based on the accounting books and records of the company, its subsidiaries, joint ventures and associates, adjusted in the consolidation process, in the assumption of going concern basis. When preparing the condensed consolidated financial statements, the Group used historical cost as its basis, modified, where applicable, via fair value measurement of i) biological assets measured at fair value, and ii) certain financial instruments, which are recorded at their fair value.

The preparation of condensed consolidated financial statements requires the use of estimates, assumptions and critical judgements in the process of determining accounting policies to be adopted by the Group, with significant impact on the book value of assets and liabilities, as well as on income and expenses for the period. Although these estimates are based on the best experience of the Board of Directors and on its best expectations regarding current and future events and actions, current and future results may differ from these estimates. Areas involving a higher degree of judgement or complexity, or areas with significant assumptions and estimates are disclosed in Note 2.4 of the accompanying notes to the consolidated financial statements of the Group for the financial year ended 31 December 2020.

DO CONSELHO DE ADMINISTRAÇÃO 3. CHANGES IN ACCOUNTING POLICIES AND COMPARABILITY OF THE CONSOLIDATED FINANCIAL STATEMENTS

Demonstrações financeiras consolidadas condensadas e notas anexas

During the period, there were no changes in accounting policies. Likewise, no material errors were recognised in relation to previous financial years.

New accounting standards and their impact in these condensed consolidated financial statements:

Up to the date of approval of these financial statements, the European Union endorsed the following accounting standards, interpretations, amendments and revisions, mandatorily applied to the financial year beginning on 1 January 2021:

	Effective date (financial years begun on or after)
Amendment to IFRS 4 Insurance Contracts - deferral of IFRS 9	01 Jan 2021
Amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2	01 Jan 2021

The adoption of these standards and interpretations had no relevant impact on the Group's financial statements.

On the approval date of these financial statements, the following accounting standards, amendments and interpretations were not yet endorsed by the European Union:

	Effective date (financial years begun on or after)
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction	01 Jan 2023
IFRS 17 – Insurance Contracts	01 Jan 2023
Amendment to IAS 8: Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates	01 Jan 2023
Amendment to IAS 1 Presentation of Financial Statements and Statement of Practice IFRS 2: Disclosure of Accounting Policies	01 Jan 2023
Amendment to IAS 1 Presentation of financial statements - Classification of liabilities as current and non-current	01 Jan 2023
Amendments to IFRS 3, IAS 16, IAS 37 and Annual Improvements 2018-2020	01 Jan 2022
Proposed changes to leases IFRS 16: Covid-19 Leases Concessions after 30 June 2021	01 Apr 2021

The Group has not adopted any standard, amendment or interpretation that has been issued but not yet effective, for the preparation of the consolidated financial statements for the period ending 31 March 2021, given that application is not mandatory. The impact of the referred standards is currently being assessed.

DO CONSELHO DE ADMINISTRAÇÃO

4. INVESTMENTS

4.1 INVESTMENTS IN SUBSIDIARIES

The companies included in the consolidation by the full consolidation method, respective registered offices, proportion of capital held and main activity as at 31 March 2021 and 31 December 2020 are as follows:

Company	Registered office	Effective held percentage Main activity
Parent company:		31.03.2021	31.12.2020
Altri, SGPS, S.A.	Porto			Holding (company)
Subsidiaries:
Altri Abastecimento de Madeira, S.A.	Figueira da Foz	100%	100%	Timber commercialization
Altri Florestal, S.A.	Figueira da Foz	100%	100%	Forest management
Altri Sales, S.A.	Nyon, Switzerland	100%	100%	Group management support services
Altri, Participaciones Y Trading, S.L.	Pontevedra, Spain	100%	100%	Commercialization of Eucalyptus pulp
Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Constância	100%	100%	Generation of thermal energy and electricity
Caima – Indústria de Celulose, S.A.	Constância	100%	100%	Production and commercialization of Eucalyptus pulp
Captaraíz Unipessoal, Lda.	Figueira da Foz	100%	100%	Real estate
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão	100%	100%	Production and commercialization of Eucalyptus pulp
Celulose Beira Industrial (Celbi), S.A.	Figueira da Foz	100%	100%	Production and commercialization of Eucalyptus pulp
Inflora – Sociedade de Investimentos Florestais, S.A.	Figueira da Foz	100%	100%	Forest management
Sociedade Imobiliária Porto Seguro – Investimentos Imobiliários, S.A.	Porto	100%	100%	Real estate
Viveiros do Furadouro Unipessoal, Lda.	Óbidos	100%	100%	Plant production in nurseries and services related with forest and landscapes
Florestsul, S.A.	Figueira da Foz	100%	100%	Forest management
Sociedade de Energia Solar do Alto Tejo (SESAT), Lda.	Nisa	80%	80%	Renewable energy sources
GREENVOLT- ENERGIAS RENOVÁVEIS, S.A. (a)	Figueira da Foz	100%	100%	Electricity generation using waste and biomass sources
Bioródão, S.A.	Figueira da Foz	100%	100%	Electricity generation using waste and biomass sources
Ródão Power - Energia e Biomassa do Ródão, S.A.	Vila Velha de Ródão	100%	100%	Production and commercialization of electric and thermal energy through cogeneration
Sociedade Bioelétrica do Mondego, S.A.	Figueira da Foz	100%	100%	Electricity generation using waste and biomass sources
Golditábua, S.A. (b)	Figueira da Foz	100%	100%	Electricity generation
Ribatejo Green, Lda (c)	Algés	70%	70%	Electricity generation
Amieira Green, Lda (c)	Algés	70%	70%	Electricity generation
Paraimo Green, Lda	Algés	70%	70%	Electricity generation
Piara Solar, Lda (c)	Algés	70%	70%	Electricity generation
Maior Green, Lda (c)	Algés	70%	70%	Electricity generation

(a) Formerly known as Bioelétrica da Foz, S.A.

(b) Company acquired in the december 2020 (c) Entity extinguished with effect on 31 March 2021

All subsidiaries above were included in the Altri Group's consolidated financial statements using the full consolidation method.

DO CONSELHO DE ADMINISTRAÇÃO 4.2 INVESTMENT IN JOINT VENTURES AND ASSOCIATES

Joint ventures and associates, registered offices, proportion of capital held, main activity and financial position as at 31 March 2021 and 31 December 2020 are as follows:

Company	Registered office		Statement of financial position	Effective shareholding percentage		Main activity
		31.03.2021	31.12.2020	31.03.2021	31.12.2020
Pulpchem Logistics, A.C.E.	Lavos	-	-	50.00%	50.00%	Purchases of materials, subsidiary materials and services used in pulp and paper production processes
Afocelca - Agrupamento complementar de empresas para protecção contra incêndios, ACE Investments in joint ventures	Herdade da Caniceira	- -	- -	35.20%	35.20%	Provision of forest fire prevention and fighting services
Operfoz – Operadores do Porto da Figueira da Foz, Lda. Investments in associates	Figueira da Foz	806,485 806,485	755,583 755,583	33.33%	33.33%	Port operations
Total		806,485	755,583

Operfoz has its registered office at Figueira da Foz and its main activity is operation of ports. This entity was included in the Altri Group's consolidated financial statements using the equity method.

The movements in the balance of this caption in the periods ended 31 March 2021 and 31 December 2020 are detailed as follows:

	Statement of financial position
	31.03.2021	31.12.2020
Opening balance	755,583	725,472
Equity method: Effects on gains and losses pertaining to joint ventures and associates	50,902	30,111
Closing balance	806,485	755,583

The accounting policies used by these joint ventures and associates are not significantly different from those used by the Altri Group, and as such no harmonization of the accounting policies was necessary.

5. CHANGES IN THE CONSOLIDATION PERIMETER

During the three months period ended on 31 March 2021, there were no changes in the consolidation perimeter compared to 31 December 2020, other than those referred in Note 4.

6. CASH AND CASH EQUIVALENTS

As at 31 March 2021 and 2020, Cash and cash equivalents are as follows:

	31.03.2021	31.03.2020
Cash	36,555	31,491
Bank deposits	238,248,301	219,607,738
Cash and cash equivalents on the statement of financial position	238,284,855	219,639,229
Bank overdrafts (Note 9)	-	(2,897,284)
Cash and cash equivalents on the statement of cash flows	238,284,855	216,741,945

DO CONSELHO DE ADMINISTRAÇÃO 7. CURRENT AND DEFERRED TAXES

According to current legislation, tax returns are subject to review and correction by the tax authorities during a period of four years (five years for Social Security), except when there have been tax losses, tax benefits granted, or when inspections, complaints or challenges are in progress, in which cases, depending on the circumstances, the deadlines are extended or suspended. Therefore, the Group's tax returns since 2017 may still be subject to review.

The Board of Directors of Altri believes that any potential corrections resulting from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the condensed consolidated financial statements as of 31 March 2021.

8. SHARE CAPITAL

As at 31 March 2021 and 31 December 2020, the Company's share capital was fully subscribed and paid up, consisting of 205,131,672 shares with a nominal value of 12.5 cents of Euro each.

9. BANK LOANS, OTHER LOANS AND REIMBURSABLE GOVERNMENT GRANTS

As at 31 March 2021 and 31 December 2020, 'Bank loans', 'Other loans' and 'Reimbursable government grants' can be detailed as follows:

	31.03.2021
		Nominal value		Book value
	Current	Non-current	Total	Current	Non-current	Total
Bank loans	-	27,500,000	27,500,000	18,229	27,500,000	27,518,229
Bank overdrafts	-	-	-	-	-	-
Bank loans	-	27,500,000	27,500,000	18,229	27,500,000	27,518,229
Commercial paper	135,000,000	40,000,000	175,000,000	135,000,000	40,000,000	175,000,000
Bond loans	2,500,000	492,900,000	495,400,000	4,787,281	491,279,560	496,066,841
Other loans	-	-	-	-	-	-
Other loans	137,500,000	532,900,000	670,400,000	139,787,281	531,279,560	671,066,841
Reimbursable government grants	2,847,177	2,942,267	5,789,445	2,847,177	2,942,267	5,789,445
	140,347,177	563,342,267	703,689,445	142,652,688	561,721,828	704,374,515

	31.12.2020
		Nominal value		Book value
	Current	Non-current	Total	Current	Non-current	Total
Bank loans	-	27,500,000	27,500,000	139,880	27,500,000	27,639,880
Bank overdrafts	1,996,090	-	1,996,090	1,996,090	-	1,996,090
Bank loans	1,996,090	27,500,000	29,496,090	2,135,970	27,500,000	29,635,970
Commercial paper	165,000,000	40,000,000	205,000,000	165,116,811	40,000,000	205,116,811
Bond loans	1,250,000	494,150,000	495,400,000	3,752,917	492,417,574	496,170,491
Other loans	-	-	-	-	-	-
Other loans	166,250,000	534,150,000	700,400,000	168,869,728	532,417,574	701,287,302
Reimbursable government grants	2,847,178	2,942,267	5,789,445	2,847,177	2,942,267	5,789,444
	171,093,268	564,592,267	735,685,535	173,852,875	562,859,841	736,712,716

The book value includes accrued interests and the expenditures with the issuance of the loans. These expenses were deducted from its nominal value and are being recognised as financial expenses along the life period of the loan (Note 12).

10. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

DO CONSELHO DE ADMINISTRAÇÃO

The movement occurred under provisions and impairment losses in the three months periods ended 31 March 2021 and 2020 can be detailed as follows:

	31.03.2021
	Provisions	Impairment losses in receivables	Impairment losses in inventories	Total
Opening balance	16,689,458	3,618,696	13,046,936	33,355,090
Increases	30,488	-	-	30,488
Utilizations	-	-	-	-
Reversals	-	-	(664,130)	(664,130)
Transfers	(3,051)	-	-	(3,051)
Closing balance	16,716,895	3,618,696	12,382,806	32,718,397
		31.03.2020
	Provisions	Impairment losses in receivables	Impairment losses in inventories	Total
Opening balance	17,307,171	3,624,622	14,837,369	35,769,162
Increases	37,549	-	-	37,549
Utilizations	(340,551)	-	-	(340,551)
Reversals	-	-	(1,857,170)	(1,857,170)
Transfers	(3,050)	0	0	(3,050)
Closing balance	17,001,119	3,624,622	12,980,199	33,605,940

The amount recorded under 'Provisions' includes the dismantling provision of the power generation plants operated by Greenvolt - Energias Renováveis, S.A. and its subsidiaries.

The increase recorded in the three months period ended 31 March 2021 refers to the unwinding of the discount. This discount that results from the passage of time is recorded against the caption 'Financial expenses'.

The amount recorded under the caption 'Provisions' is the best estimate from the Board of Directors in order to address the entirety of losses to be incurred with currently ongoing legal proceedings.

11. DERIVATIVE FINANCIAL INSTRUMENTS

As at 31 March 2021 and 31 December 2020, the Altri Group had in force derivative financial instrument contracts associated with hedging interest rate changes and derivative financial instrument contracts associated with hedging exchange rate changes. All these instruments are recorded at fair value.

Altri Group subsidiaries only use derivatives to hedge cash flows associated with operations generated by their activity.

As at 31 March 2021 and 31 December 2020, the fair value of derivative financial instruments is as follows:

	31.03.2021			31.12.2020
	Asset		Liability		Asset		Liability
	Current	Non-current	Current	Non-current	Current	Non-current	Current	Non-current
Interest rate derivatives Exchange rate derivatives	2,330,084	- - -	131,975 845,706	980,685 -	7,313,870	- - -	131,976 230,685	1,053,386 -
	2,330,084	-	977,681	980,685	7,313,870	-	362,661	1,053,386

The movement in the fair value of the derivative financial instruments during the three months period ended 31 March 2021 can be broken down as follows:

Demonstrações financeiras consolidadas condensadas e notas anexas

DO CONSELHO DE ADMINISTRAÇÃO

	Interest rate derivatives	Exchange rate derivatives	Total
Opening balance	(1,185,362)	7,083,185	5,897,823
Change in fair value Effects on equity Effects on the income statement Effects on the statement of financial position	137,964 (65,262) -	(5,461,038) 830,651 (968,420)	(5,323,074) 765,389 (968,420)
Closing balance	(1,112,660)	1,484,378	371,718

12. FINANCIAL RESULTS

The financial results for the three months periods ended 31 March 2021 and 2020 are detailed as follows:

	31.03.2021	31.03.2020
Financial expenses
Interest expenses	2,668,246	3,444,884
Other financial expenses and losses	618,830	2,361,135
	3,287,076	5,806,019
Financial income
Interest income	27,210	14,542
Other financial income and gains	2,833,852	1,262,031
	2,861,062	1,276,573

During the three months period ended on 31 March 2021, the caption 'Other financial expenses and losses' includes, among others, expenses incurred with loans, which are being recognised as an expense over the life of the respective loan (Note 9) and the expenses on exchange rate derivatives (Note 11). The caption 'Other financial income and gains' includes, mainly, exchange rate gains.

13. EARNINGS PER SHARE

Earnings per share for the three months period ended 31 March 2021 and 2020 were calculated based on the following amounts:

	31.03.2021	31.03.2020
Number of shares for basic and diluted earning calculation	205,131,672	205,131,672
Result for the purpose of calculating earnings per share	13,204,368	6,815,639
Earnings per share Basic Diluted	0.06 0.06	0.03 0.03

14. OTHER INCOME

As at 31 March 2021 and 2020, the caption 'Other Income' is detailed as follows:
----------------------------------------------------------------------------------	--

	31.03.2021	31.03.2020
Investment and exploration subsidies	913,466	988,530
Gains on sales of assets	5,816	26,787
Others	285,469	198,107
	1,204,751	1,213,424

DO CONSELHO DE ADMINISTRAÇÃO 15. INFORMATION BY SEGMENTS

The Altri Group shows the following reportable segments:

i) Pulp

Comprising essentially the three pulp mills in Portugal: Celulose Beira Industrial (Celbi), S.A., in Figueira da Foz; Celtejo – Empresa de Celulose do Tejo, S.A., in Vila Velha de Ródão; and Caima – Indústria de Celulose, S.A., located in Constância, and the forestry activity; and

ii) Energy

Consisting of GreenVolt – Energias Renováveis, S.A. and its subsidiaries, comprising five power plants generating energy from forest biomass, for sale to the public grid.

The Group identified these two reportable segments, considering that these are Group facilities that carry on business where revenues and expenses can be separately identified and relative to which separate financial information is produced. The identification of the reportable segments made by the Group is consistent with the way the Board of Directors conducts and controls them, and on which it makes decisions.

The contribution of the business segments to the consolidated income statement for the three months period ended 31 March 2021 is as follows:

	Energy	Pulp	Total	Eliminations	Consolidated
Sales	21,144,689	155,867,099	177,011,788	-	177,011,788
Sales - intersegmental	-	94,029,653	94,029,653	(94,029,653)	-
Services rendered	-	986,070	986,070	-	986,070
Services rendered - intersegmental	-	9,743,156	9,743,156	(9,743,156)	-
Other income	55,745	1,149,006	1,204,751	-	1,204,751
Other income - intersegmental	-	185,209	185,209	(185,209)	-
Fair value changes in biological assets	-	-	-	-	-
Total operating income	21,200,434	261,960,193	283,160,627	(103,958,018)	179,202,609
Cost of sales	(9,760,709)	(168,702,373)	(178,463,082)	92,394,660	(86,068,422)
External supplies and services	(4,386,841)	(51,141,094)	(55,527,935)	11,326,161	(44,201,774)
Payroll expenses	(301,562)	(9,145,165)	(9,446,727)	48	(9,446,679)
Amortisation and depreciation	(3,660,892)	(16,119,328)	(19,780,220)	-	(19,780,220)
Provisions and impairment losses	(1,005)	664,129	663,124	-	663,124
Other expenses	(30,520)	(644,124)	(674,644)	20	(674,624)
Total operating expenses	(18,141,529)	(245,087,955)	(263,229,484)	103,720,889	(159,508,595)
Operating results	3,058,905	16,872,238	19,931,143	(237,129)	19,694,014
Results related to investments					50,902
Financial results					(426,014)
Profit before income tax and CESE					19,318,902
Income tax					(5,105,682)
Energy sector extraordinary contribution (CESE)					(1,016,000)
Consolidated net profit for the period					13,197,220
Attributable to:
Holders of equity in the parent company					13,204,368
Non-controlling interests					(7,148)
					13,197,220

DO CONSELHO DE ADMINISTRAÇÃO The contribution of the business segments to the consolidated income statement for the three months period ended 31 March 2020 is as follows:

Demonstrações financeiras consolidadas condensadas e notas anexas

	Energy	Pulp	Total	Eliminations	Consolidated
Sales	21,757,119	141,675,497	163,432,616	-	163,432,616
Sales - intersegmental	3,013,987	88,127,269	91,141,256	(91,141,256)	-
Services rendered	-	1,014,319	1,014,319	-	1,014,319
Services rendered - intersegmental	-	8,976,016	8,976,016	(8,976,016)	-
Other income	55,604	1,157,820	1,213,424	-	1,213,424
Other income - intersegmental	-	208,017	208,017	(208,017)	0
Fair value changes in biological assets	-	-	-	-	-
Total operating income	24,826,710	241,158,938	265,985,648	(100,325,289)	165,660,359
Cost of sales	(12,468,552)	(157,575,770)	(170,044,322)	89,006,598	(81,037,724)
External supplies and services	(4,472,258)	(49,646,159)	(54,118,417)	11,170,900	(42,947,517)
Payroll expenses	-	(9,242,163)	(9,242,163)	49,630	(9,192,533)
Amortisation and depreciation	(3,669,614)	(16,096,410)	(19,766,024)	-	(19,766,024)
Provisions and impairment losses	-	1,857,170	1,857,170	-	1,857,170
Other expenses	(45,625)	(1,152,156)	(1,197,781)	5,023	(1,192,758)
Total operating expenses	(20,656,049)	(231,855,488)	(252,511,537)	100,232,151	(152,279,386)
Operating results	4,170,661	9,303,450	13,474,111	(93,138)	13,380,973
Results related to investments					119,891
Financial results					(4,529,446)
Profit before income tax and CESE					8,971,418
Income tax					(2,155,875)
Energy sector extraordinary contribution (CESE)					-
Consolidated net profit for the period					6,815,543
Attributable to:
Holders of equity in the parent company					6,815,639
Non-controlling interests					(96)
					6,815,543

16. RELATED PARTIES

Altri Group subsidiary companies have relationships with each other that qualify as transactions with related parties, which were carried out at market prices.

In the consolidation procedures, transactions between companies included in the consolidation using the full consolidation method are eliminated, since the consolidated financial statements show information on the holder and its subsidiaries as if it were a single company, and so they are not disclosed under this note.

During the three months periods ended 31 March 2021 and 2020, there were no transactions with the Board of Directors, nor were they granted loans.

As at 31 March 2021 and 2020, balances and transactions with related entities during the three months periods ended on those dates can be summarised as follows:

	Payables		Receivables
	31.03.2021	31.03.2020	31.03.2021	31.03.2020
Balances
Joint ventures and associates (a)	686,513	1,136,999	-	-
Other related parties (b)	130,581	522,872	-	-
	817,094	1,659,871	-	-

		Purchases and acquired services		Sales and services rendered
	31.03.2021	31.03.2020	31.03.2021	31.03.2020
Transactions
Joint ventures and associates (a)	4,185,915	4,083,574	-	-
Other related parties (b)	556,521	662,021	-	-
	4,742,436	4,745,595	-	-

• DO CONSELHO DE ADMINISTRAÇÃO (a) Entities included in the consolidation using the equity method as at 31 March 2021 and 2020 (Note 4.2)
  • (b) The companies listed below were considered as other related parties

Along with the companies included in the consolidation (Note 4), entities deemed related as at 31 March 2021 can be shown as follows:

• Actium Capital, S.A.
• A Nossa Aposta Jogos e Apostas On-line, S.A.
• Caderno Azul, S.A.
• Cofihold, S.A.
• Cofihold II, S.A.
• Cofina Media, S.A.
• Cofina, SGPS, S.A.
• Elege Valor, Lda.
• Expeliarmus Consultoria, Lda.
• Fisio Share Gestão de Clínicas, S.A
• F. Ramada II, Imobiliária, S.A.
• Grafedisport Impressão e Artes Gráficas, S.A
• Livrefluxo, S.A.
• Mercados Globais Publicação de Conteúdos, Lda.
• Planfuro Global, S.A.
• Préstimo Prestígio Imobiliário, S.A.
• Promendo Investimentos, S.A.
• Ramada Aços, S.A.
• Ramada Investimentos e Indústria, S.A.
• Socitrel Sociedade Industrial de Trefilaria, S.A.
• Universal Afir, S.A.
• Valor Autêntico, S.A.
• VASP Sociedade de Transportes e Distribuições, Lda.
• 1 Thing, Investments, S.A.

17. APPROPRIATION OF NET PROFIT

Regarding the 2020 financial year, the Board of Directors proposed in its annual report, which was approved in the General Meeting held on April 30, 2021, that the individual net profit of Altri, SGPS, S.A. in the amount of EUR 95,148,555, should be allocated as follows:

Free reserves	EUR 43,865,637
Dividends	EUR 51,282,918

The distribution of profits for the financial year results in the payment of a gross dividend of EUR 0.25 per share.

18. SUBSEQUENT EVENTS

From 31 March 2021 to the date of issue of this report, there were no other relevant facts that could materially affect the financial position and future results of the Altri Group and its subsidiary and associated companies included in the consolidation.

19. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2021.

DO CONSELHO DE ADMINISTRAÇÃO 20. TRANSLATION NOTE

These consolidated financial statements are a translation of the financial statements originally issued in Portuguese in accordance with IAS 34 – Interim Financial Reporting and with the International Financial Reporting Standards as adopted by the European Union, 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.

The Board of Directors

Alberto João Coraceiro de Castro

Paulo Jorge dos Santos Fernandes

João Manuel Matos Borges de Oliveira

Domingos José Vieira de Matos

Laurentina da Silva Martins

Pedro Miguel Matos Borges de Oliveira

Ana Rebelo de Carvalho Menéres de Mendonça

Maria do Carmo Guedes Oliveira

Paula Simões de Figueiredo Pimentel Freixo

José Soares de Pina

José António Nogueira dos Santos

Carlos Alberto Sousa Van Zeller e Silva

DO CONSELHO DE ADMINISTRAÇÃO

ALTRI, SGPS, S.A.

Rua Manuel Pinto de Azevedo, 818 4100 – 320 Oporto PORTUGAL Tel: + 351 22 834 65 02

www.altri.pt