R E P O R T A N D A C C O U N T S

30 June 2022

(Unaudited information)

M A N A G E M E N T R E P O R T

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TABLE OF CONTENTS

MESSAGE FROM THE CEO .............................................................................................

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INTRODUCTION ............................................................................................................

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STOCK EXCHANGE EVOLUTION.....................................................................................

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THE GROUP'S ACTIVITY .................................................................................................

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OPERATIONAL AND FINANCIAL PERFORMANCE ..........................................................

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FINANCIAL REVIEW .....................................................................................................

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SUSTAINABILITY ..........................................................................................................

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PERSPECTIVES ............................................................................................................

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CORPORATE GOVERNANCE ........................................................................................

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LEGAL MATTERS ..........................................................................................................

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CLOSING REMARKS.....................................................................................................

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ANNEXES TO THE MANAGEMENT REPORT ...................................................................

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(This is a translation of a document originally issued in Portuguese. In the event of discrepancies, the Portuguese language version prevails - Note 23)

To the Shareholders

Pursuant to the legal requirements, the Board of Directors of Altri, SGPS, S.A. ("Altri") hereby presents its Management Report for the first half of 2022.

MESSAGE FROM THE CEO

Altri Group maintained a strong operating performance in the second quarter, but also in the accumulated first half of this year. Despite the scheduled maintenance shutdown of Biotek, it was possible to achieve a high production volume of cellulosic fibers as a result of the increasing efficiency of operations in Caima, Celbi and of Biotek itself.

Never before has the production capacity of our units, which also reflects the daily commitment of our people, been so important, given the demand for cellulosic fibers in the international market. China continues to present lower levels of demand, but has been compensated by the rest of the Asia and Pacific region and especially by the dynamism of the Western European market.

All this in a context of consecutive increases in fiber prices. In these three months, increases were announced for April, May and June, of US$ 50 /ton, each, with the price of pulp (BHKP) in Europe reaching the end of the quarter at US$ 1,350 /ton. In July, a new increase of US$ 30/ton was announced. In the Dissolving Pulp business area, the price evolution also continues to be very positive.

The combination of the dynamics of demand with rising prices translated positively in the financial indicators of the Altri Group at the level of revenues, which grew by about 42%, but also in EBITDA (+33%) and Net Profit (+57%). This performance has been achieved in a challenging environment of inflation of several variable costs, reflecting the disruptions in logistics chains, but exacerbated by the invasion of Ukraine by Russia.

The context of strong increase in energy and raw materials prices, especially chemicals and wood, has limited the expansion of profitability and margins obtained by the Altri Group. However, it does not discourage us from continuing to invest so far to make our units more productive, but also increasingly environmentally friendly. A large part of the 60% increase in the Group's investment is explained by the "Caima Go Green" project, which will allow this to be the first Iberian unit, and one of the first in Europe, to operate without fossil fuels.

For us, sustainability is extremely important. It is at the heart of the decisions we make on a daily basis, but also in the choices we make today, with our eyes on the future. The Gama project in Galicia is a mirror of that. If it goes ahead - the final decision should be made during the first half of 2023 -, it will be an investment of over 800 million euros in a unit equipped with the latest technology, which will not only have a reduced environmental impact but will also meet the growing demand for sustainable fibers for the textile industry, which is also increasingly thirsty for alternatives to synthetic fibers produced from fossil fuels and non- biodegradable.

José Soares de Pina

Altri's CEO

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INTRODUCTION

Altri was incorporated in February 2005 and, as a result of relevant and complex acquisitions, namely Biotek, S.A. ("Biotek") and, later, Celbi, S.A. ("Celbi"), industrial units that joined the already owned Caima, S.A. ("Caima"), quickly became known and recognized as a reference European producer of cellulose fibres for paper applications and, more recently, of cellulose fibres for special applications, mainly for the textile sector. It is also a reference player in the renewable forest-based energy sector, namely in industrial cogeneration through black liquor and biomass, insofar as its forestry strategy is based on the full use of all the components provided by the forest: pulp, black liquor and forest waste.

All the shares representing Altri's share capital are admitted to trading on a regulated market - Euronext Lisbon - integrating its main reference index, PSI.

Altri's success is due to a variety of factors, most notably the high level of investment made, especially in recent years - Altri has invested in the last ten years more than 477 million Euro in industrial units in Portugal, equipping them with the most advanced technology available on the global market. Therefore, Altri's industrial units are now national and international references in terms of best practices and environmental compliance.

Altri has three pulp mills in Portugal: Celbi, in Figueira da Foz, Biotek, in Vila Velha de Ródão and Caima, in Constância, with an installed capacity of production of cellulose fibres of more than 1.1 million tonnes in the three units as a whole in 2021.

The forest is a strategic asset for Altri. Currently, Altri, through its subsidiaries, Altri Florestal, S.A. and Florestsul, S.A., manages 88.3 hectares of forest in Portugal. Altri's management practices are certified by the main sustainable forest management certification systems, a guarantee that the Company will achieve its goals, now and in the future.

In these lands, eucalyptus stands out as the main crop of Altri's forest, ensuring a self-supply that complements the supply provided by the wood and biomass market. These lands are fully certified by the Forest Stewardship Council® (FSC®) and the Programme for the Endorsement of Forest Certification (PEFC), two of the most renowned certification bodies worldwide.

Although Altri's forests are scattered across the country, they are mostly concentrated in Tejo's valley, a fact that makes them even more relevant due to their proximity to Altri's manufacturing units. This proximity is extremely relevant from the strategic point of view, because it allows optimising transportation costs, while ensuring a greater efficiency in the mobilisation of wood when compared to the production of wood located at farther distances.

The pursuit of Altri's industrial strategy is based on integrated forest management in Portugal, which aims at optimising the forest, guaranteeing that all its components are fully used. Thus, eucalyptus is processed in Altri's mills, producing paper pulp and electricity (cogeneration), while the bark, the branches and the forest waste are used to generate electricity using biomass.

Altri's development strategy is clearly based on the reinforcement of its operational efficiency and, at the same time, on the diversification of the sources of revenue for segments with higher added value and that enable an evolution in the value chain. Thus, in order to comfortably compete in the commodity market, and in a context marked by an adverse exchange rate, the Company must reduce its operating costs and, on the other hand, invest in the manufacture of products with higher added value, which will allow the Group to grow.

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Altri SGPS SA published this content on 30 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 September 2022 17:23:00 UTC.