KaMin LLC Announces Price Increase for Paper and Packaging Grade Kaolin Clays

Revenue: For the third quarter ended 30 September 2022 Lecta had revenue of €514.6 million versus €342.3 million in the third quarter ended 30 September 2021, an increase of €172.3 million or +50%. EBITDA increased by €25.9 million, from €8.9 million in 3Q2021 to €34.7 million in 3Q2022. This increase was essentially due to higher sales of paper in volume and higher sales prices, partly offset by higher production cost and higher labor and fixed costs. Revenue: For the nine months ended 30 September 2022, Lecta had revenue of €1,522.3 million versus €923.8 million in the nine months ended 30 September 2021, an increase of €598.4 million or +64.8%. EBITDA increased by €126.6 million, from €30.0 million in September 2021 YTD to €156.5 million in September 2022 YTD. This increase was the result of higher sales of paper in volume, and higher sales prices, partly offset by lower margin on variable costs, and higher fixed costs. EBITDA in September 2022 YTD includes the €38.6 m€ compensation received as a consequence of the anticipated termination and renegotiation of gas purchase agreements in Spain with the current supplier.

Lecta has published its new 2020 Environmental Report, highlighting actions and improvements carried out over the last two years. As a responsible company firmly committed to sustainability, minimizing our environmental footprint is one of our main objectives. In a year marked by the devastating impact of the pandemic and the consequent loss of production efficiency, the new report shows how the primary environmental goals of this period were still achieved. It further defines new commitments for the future and an overall goal to return to the extraordinarily positive trends in our environmental parameters prior to COVID-19. The report also underscores the considerable organizational effort made in response to the pandemic to ensure to the greatest degree possible the health and safety of everyone who is part of Lecta, while maintaining operations and service to our customers, who serve essential market segments.

Lecta formalized its ESG (Environmental, Social, Governance) strategy as a key pillar of our business strategy for the future in 2022. As part of this strategy, we set ambitious targets for 2030 and defined key performance indicators (KPI's) for our work and progress in this area, linked to the United Nations Sustainable Development Goals (SDG's). Determined to meet this challenge and in line with its information transparency policy, Lecta regularly monitors its progress at a Group level and publishes its consolidated ESG performance results on an annual basis. As reflected in our latest Sustainability Report, 2023 was a good year in terms of progress towards many of our ESG objectives, especially those related to the environment. Both the organizational carbon footprint (OCF) and Lecta's product carbon footprint (PCF) have decreased yearly since 2021.