Altri SGPS S A : informs about 2021 results

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.

Earnings Announcement | 2021

Index

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

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Earnings Announcement | 2021

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.

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Earnings Announcement | 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.

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Earnings Announcement | 2021

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

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