Annual Report 2023 UPM Forestal Oriental

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In February we officially inaugurated our third nursery, located in Sarandí del Yí. This state-of-the-art nursery, which has created 120 permanent jobs in the area, recorded exceptional production levels throughout the year, adding 10 million plants to those already produced in our nurseries in the department of Paysandú. These plants help us ensure the supply of the best genetic material for plantations in our own fields and those of more than 900 producers associated with our Development Programme. In the same way as other productive sectors in agriculture, we were impacted by climatic challenges throughout the year due to the significant drought that affected the country. In this challenging context, we continued with our afforestation process to develop our long term forestry base, capitalizing on operational windows and achieving excellent planting levels. The supply process showcased a leap in the scale of its operations. To support logistic operations we continued developing internal roads and the upkeep of more than 850 kilometres of local roads in agreement with departmental governments. We now also operate six intermediate timber stockpiles, located in strategic areas on paved routes, allowing our transport fleet to operate on rainy days and avoid the use of local roads during wet p eriod s . In the harvesting side of things, we topped the growth charts for our own operations and all contractors, increasing the total production volume by 90% compared to the previous year. Meanwhile, in loading and transportation we oversaw an average of more than 700 daily trips to provide timber to the mills. That’s 50

million kilometres travelled during the entire year. We also continued to advance in our Road Safety programme and incorporated the latest safety technology in all transport vehicles . The digitalization of all our processes and the implementation of optimization systems that took place within the framework of the company’s growth plans have been essential in managing these new operation levels in an efficient and orderly manner. In October, as part of our commitment to the environment and local communities, we opened the doors to a Visitor Centre in the Esteros y Algarrobales del Río Uruguay Reserve Area. This centre is equipped to receive groups interested in discovering and learning about this unique area of biodiversity that was incorporated into the System of National Protected Areas (SNAP). In addition to the necessary infrastructure to receive visitors, the new centre is also fitted with research facilities and has two exploration trails around 3km in length that allow visitors to discover more than 900 species of flora and fauna. This reserve area, together with 34 other conservation areas that we manage in different areas of the country, make up a unique heritage in terms of biodiversity and conservation. In occupational health and safety, we sustained a constant focus on promoting safety as a core value within all our operations. We recognize the importance of each individual and each third-party company in this task. Everyone needs to be involved in promoting an increasingly safer work environment for the more than 4,600 people carrying out their daily activities in our operations.

As part of our daily work, we are involved with local communities, decision makers and authorities. Throughout the year, we developed more than 570 joint activities that allowed us to provide information on our operations and identify areas in which we can work together. During 2023 we also implemented social monitoring activities, which help us incorporate perspectives from both local communities and workers in the sector. This monitoring is a great tool for us to be able to measure perceptions and needs. In so many ways 2023 has been a year of important achievements. I invite you to explore this report and learn more about our company and our commitment to sustainable and responsible forestry development.

Álvaro Fitipaldo Head of Operations at UPM Forestal Oriental