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Investor Presentaiton

Forestry Operations In 2022, as Eldorado Brasil celebrated its 10-year anniversary, our forestry operations achieved remar- kable milestones. Our pulpwood eucalyptus forests grew to a total of 267,300, and we sourced an additional 60 million cubic meters (m³) of pulpwood from the market. During the year, we planted more than 300 million eucalyptus trees on owned and leased land, and maintained 117,000 hectares of protected areas. Alongside this expansion, we invested in technology to streamline our operations and decision-making. Out of the 2,500 clones we tested in the year, 157 were selected as genetic material for annual plan- ting across our more than 300 farms throughout the state of Mato Grosso do Sul. As part of our genetic improvement efforts, we successfully registered five elite cultivars with the Ministry of Agriculture and Livestock (MAPA). These cultivars were selected from progenies imported from Australia and other parts of the world. Known as local varieties, these cultivars exhibit well-adapted characteristics to our sites, demonstrating enhanced growth and resilience to water deficit, common pests, and eucalyptus diseases. Our research in genetic improvement and biotechnology continues to advance. During the year, we established an experimental network within our Genetic Improvement Program (PMGF). We implemented 48 new trials, covering a total of 133 hectares, and introduced 755 new progenies and 534 new clones. The goal in these trials is to develop high-yield genetic material adapted to our plantation sites, with optimal pulpwood properties and high tolerance to biotic and abiotic stressors. Eldorado is currently developing several biotech- nology projects, particularly in metagenomics. We have made significant progress in characterizing microorganisms associated with eucalyptus and exploring the production of novel inoculants. Also as part of our forestry improvement efforts, we are currently developing a project, called "Pizarro," in col- laboration with SENAI and EMBRAPII. This partner- ship aims to develop tools to reduce the time taken to evaluate and select genetic materials within the Eldorado Genetic Improvement Program. Phase one of the project involved the development of NIR (Near Infrared Spectroscopy) models for pulpwood quality characterization, and in vitro multiplication of 1,000 progenies from a hybridization field. Our bio-inputs factory has supported our efforts to protect approximately 150,000 ha of forests through the release of laboratory-bred natural predators to control opportunistic pests and reduce the use of chemical products. We also implemented a large- -scale experimental forest management project (Floresta de Máxima Produtividade) in the year, with around 500 hectares of trial fields using different eucalyptus cultivation methods, including different row spacing, genetic materials, fertilization, lighting levels, and forest irrigation. This is supported by a sophisticated plant sensor system, allowing us to evaluate the trees' response to tested alternatives in controlled environments, monitored by weather stations and biological flow analysis. Led by five of Brazil's leading crop science and forestry professors, this project will substantially enhance our unders- tanding of planted forest management in the state of Mato Grosso do Sul, enabling us to fine-tune our forestry practices. In 2022 we continued our strategy of mechanizing our forestry operations, achieving a mechanization rate of 71.35%. We also continued to expand our communication tower network, amplifying the forest fire protection envelope. In addition we completed the installation of 30 weather stations, covering 98% of our total eucalyptus area. An ambitious telemetry and machine sensor project, combined with artificial intelligence and satellite imagery programs, has improved our ability to remotely manage pulpwood operations from our Forestry Intelligence Center (IRIS). Using 150 nano- -satellites, multi-temporal mapping and analysis, and RGB and NDVI monitoring technologies, we closely monitor daily planting and harvesting ope- rations, as well as the levels of weed competition. Eldorado has created an integrated mapping portal covering our entire forest estate, which automa- tically generates custom maps for each manager. Team leads and technicians use a tablet-based software system, called Gisagre, to navigate our pulpwood operations and collect comprehensive information about eucalyptus stands, including area, year planted, genetic material, fertilization methods used, and the latest growth and volume measure- ments in the observed area. HV130 In 2022 we harvested and hauled approximately 6 million cubic meters of pulpwood to our mill. We also invested in infrastructure on company-ope- rated farms. including 1,461 kilometers of new roads and 14,000 kilometers of road repairs. Eldorado provided extensive training to develop 3,000 employees, including 1,000 forest fire res- ponders as well as machinery operators, drivers, and leaders at different levels. In collaboration with Empresa Conexão-FGV, we developed a course, called "Germinar," to equip future leaders with high-level managerial and technical skills, preparing them for managerial roles within the company. Occupational safety has always been a priority at Eldo- rado. Through programs such as Safety Blitzes, Inova+, VISTA and Lidere a Vida, we have successfully reduced our injury frequency rate by 91.24% (from 2.97 to 0.26) and our injury severity rate by 90.38% (from 52 to 5) since our company was founded in 2012. Eldorado Brasil 44 Foreword Sustainability Report 2022 The Eldorado Way Corporate Governance Planet Stewardship People GRI Content Index 45▶
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