Altri SGPS S A : announces 1Q2022 results

E A R N I N G S A N N O U N C E M E N T

1Q22( 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.

Earnings Announcement | 1Q22

Index

Highlights of 1Q22	3
Message from the CEO	4
Operational and Financial Performance	5
Pulp Segment	5
Altri Group	6
Sustainability	8
Perspectives	9
Annexes	10
Description of Altri Group	10
Pulp Mill's Maintenance Downtime Schedule	11
Financial Debt Maturity Profile	11
Income Statement of 1Q22	12
2030 Commitment - Current status by the end of 2021	13
Glossary	14

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Earnings Announcement | 1Q22

Highlights of 1Q22

Pulp Segment

Total revenues for Altri Group reached € 249.2 M during 1Q22, an increase of 46.5% vs 1Q21 and a sequential increase of 19.8% vs 4Q21, benefiting from the favorable pulp price environment.

The level of EBITDA in the 1Q22 increased by 85.6% to € 61.0 M vs 1Q21, which implies a margin improvement of 5.1 p.p. to 24.5%. On a sequential basis, EBITDA rose by 22.9%, an improvement in margin of 0.6 p.p. vs 4Q21. This performance shows the continuous search for efficiency improvement in the various plants of the Altri Group, in a challenging cost inflation environment.

Altri Group's Net Profit (Continued operations) reached € 29.8 M in 1Q22, an increase of 144.8% when compared to 1Q21.

The Net Debt of the Altri Group at the end of 1Q22 was € 303.3 M, which compares to € 344.0 M at the end of 2021. This evolution, once again, shows the strong cash flow generation capacity of the Altri Group, leading to a reduction in the Net Debt/EBITDA LTM ratio to 1.2x.

In April, the Altri Group announced the area of Palas de Rei, in the province of Lugo in the autonomous community of Galicia, as the location where it intends to build a greenfield industrial unit with an annual

production capacity of 200,000 tons of dissolving pulp and sustainable textile fibers. After this

important milestone, several steps can move forward at an accelerated pace to allow an investment decision by the end of 2022.

Since April, the Altri Group began to include environmental information in the invoices sent to its

customers. By sharing values per ton of greenhouse gas emissions, water consumption and renewable energy consumption, the Altri Group intends to increase transparency to customers and society, as well as to position itself in a higher level of continuous improvement in terms of sustainability.

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Earnings Announcement | 1Q22

Message from the CEO

Altri Group maintained a strong performance in the first three months of this year, continuing the work of excellence carried out in 2021. We presented a high level of production of cellulosic fibers, ultimately benefiting from the strong demand, but also from the continuing upward trend of prices in international markets.

The demand for cellulosic fibers continues to show a very positive dynamic, in most geographies, with the exception of China. There is a strong increase in the American continent, being particularly important the acceleration of demand in Western Europe.

This context, combined with low stocks, has led to successive price increases. The price reached 1,200 dollars per ton at the end of the first quarter, but since then, several updates totaling 100 dollars have been announced to the market. This result allowed the growth of our revenues as well as our EBITDA and net income.

This operational and financial performance, the result of the daily commitment of our people, but also of our partners, suppliers, and customers, becomes more relevant in the face of the adverse context we have faced, and will continue to face, of strong increases in the prices of energy and raw materials, especially chemicals and wood.

The inflationary pressures that are being felt are a reflection of the disruptions in the logistics chains that were already being felt last year, but are now exacerbated by Russia's invasion of Ukraine, a reprehensible act on all levels. And this is a reality that will be with us in the near future, requiring from all of us an increasingly prudent management.

The Altri Group is already an example in the efficiency of its operations, the result of constant investments that prove it is possible to achieve a balance between profitability and sustainability.

This is the right formula to make the Altri Group's business grow. And it is based on this careful analysis that we are progressing in the preparation of the Gama project in Galicia. In this sense, we recently took an important step by choosing Palas de Rei, in Lugo, as meeting the appropriate conditions for the location of the sustainable fiber complex. We are confident that we are taking the necessary steps to create the right conditions for a unique project for the production of sustainable cellulosic-based textile fibers.

José Soares de Pina

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Earnings Announcement | 1Q22

Operational and Financial

Performance

Pulp Segment

The global demand for Pulp showed an increase of 0.6% until February 2022, with the demand for Hardwood Pulp increasing by around 2.1% compared to the same period of 2021, according to the PPPC (World Chemical Market Pulp Global 100 Report- February 2022).

Altri Group is essentially exposed to the Hardwood market, so when looking at the regional demand it should be noted that most geographical areas show a positive dynamic in early 2022. The main highlights are North America (+10.8%), Latin America (+3.7%) and Western Europe (+3.0%), which maintain the positive evolution already seen in 2021. China continues to show a decrease (-4.1%), being still affected by factors already identified in 2021 and which continue to restrict many of the economic relations with the Asian country, namely logistical factors (availability of ships and freight costs) and health factors (Zero Covid policy). Given the restrictions mentioned, exports of various types of paper from China to Europe are ultimately affected, strengthening the position of local paper producers and their suppliers of raw materials.

Pulp Global Demand by Region

000' Tons	Jan-Feb 22	Jan-Feb 21	YoY
Bleached Hardwood Sulphate	6,010	5,887	2.1%
Bleached Softwood Sulphate	3,920	3,979	-1.5%
Unbleached Sulphite	463	464	-0.2%
Sulphite	20	21	-4.8%
Pulp Global Demand	10,413	10,351	0.6%
Bleached Hardwood per region
North America	551	497	10.8%
Western Europe	1,366	1,327	3.0%
Eastern Europe	255	258	-1.2%
Latin America	426	410	3.7%
Japan	170	147	15.4%
China	2,258	2,355	-4.1%
Rest of Asia/Africa	944	865	9.1%
Oceania	42	28	50.7%
Total	6,010	5,887	2.1%

Source: PPPC (World Chemical Market Pulp Global 100 Report- February 2022).

One of the important factors to confirm 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 March 2022 it is close to historic lows. The level of stocks recorded in March 2022 is the lowest level of the quarter, representing a 20% decrease when compared to the same period last year and about 29% below the average level of the last three years. These stock levels continue to show strong demand in the European pulp market.

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