Corticeira Amorim

Annual Report • Apr 22, 2024

Consolidated Annual Report

Index

Unofficial and unaudited version (pdf) of the Annual Report of Corticeira Amorim, S.G.P.S., S.A. – fiscal year 2023.

Official and audited version of the report in the format specified in the regulatory technical standard (RTS) on ESEF (Delegated Regulation (EU) 2019/815) is available at HYPERLINK https://www.amorim.com/en. In case of discrepancies between this version and the official ESEF report,the latter prevails.

Informal Translation

	Chairman's Message	04
	Governing Bodies	08
	Worldwide Presence	11
	Organisational Chart	15
01	Main Events	19
02	Amorim Cork Composites 60 Years	31
03	Consolidated Management Report	39
04	Corporate Governance Report	81
05	Sustainability Report	163
06	Consolidated Financial Statements	293
07	Notes to the Consolidated Financial Statements	301
08	Report and Opinions of the Supervisory and Auditing Bodies	363

Chairman's Message

The global economy is expected to have grown by approximately 3.1% in 2023, a slower rate than in the previous year and below average annual growth in the decade prior to the pandemic. The pace of growth, however, was clearly stronger than expected, despite the slowdown registered in the most developed economies. Geopolitical instability, the ongoing war in Ukraine and the escalating conflict between Israel and Palestine, together with numerous other smaller but interconnected conflicts, placed additional pressure on the global economy, posing new challenges for trade and supply chain management. The economic climate was particularly demanding for companies, with inflation rates above desirable levels, restrictive monetary policies, rising interest rates and reduced global demand.

Corticeira Amorim's consolidated sales totalled €985.5 million in 2023, a slight decrease compared with the record value recorded in 2022, due mainly to lower activity levels, especially in the flooring sector, and the impact of unfavourable exchange rates. It is worth highlighting the remarkable performance of Amorim Cork (cork stoppers) in relation both to the market and to the competitors, consolidating market share.

The performance overall was nevertheless highly positive in 2023, with a significant improvement in EBITDA and an increase in the EBITDA margin to 18%. Despite the negative impact of increased cork consumption prices, our operational performance was remarkable, reflecting a better sales mix and significant cost savings, mainly due to lower electricity and transport prices and the implementation of production efficiency measures. The 2023 cork purchasing campaign provided for an improvement in stocks that should stabilise future raw material supply. Consolidated net earnings totalled €88.9 million.

The year was also one of large investments. We planted more than 200,000 cork oaks and will plant another 250,000 in 2024, adopting a new science‑based cork oak culture model that, we are confident, will radically increase the productivity and profitability of cork oak

forests. In the energy sector, we continue to implement photovoltaic projects, which will enable us to produce, already in 2024, energy for our own consumption corresponding to about 20% of our electricity needs. Our research and development programmes enable us to continue innovating and to bring to market applications and products that combine know‑how, technology, and the natural, surprising and irreplaceable material that is cork. Continued investment in new technologies and applications has generated excellent results, demonstrating the potential of cork to move beyond its current uses.

More than ever, we have a vision and an approach based on the whole value chain of cork: from forest to the satisfaction of our more than 30,000 customers worldwide across a wide range of sectors. Ours is a responsible and committed approach, aligned with the expectations of our stakeholders and with 12 of the 17 Sustainable Development Goals set out by the United Nations.

Respect for the montado (cork oak forest) habitat and the invaluable services it offers humanity is a fundamental value of our culture, one that is especially expressed in the way we conduct our business activities: in perfect harmony with nature. Across the world, our people work to protect the cork oak, to rigorously manage resources and impacts, to promote the use of cork products and solutions to reduce carbon footprints and to embrace enthusiastically our common causes, that is, to improve social and environmental well‑being and prosperity for all.

The outlook for 2024 is still uncertain, but we remain confident, aiming for another positive year. This will require resilience and hard work from all of us. Taking into account the investments we have made, particularly in technologies used in different areas of all our Business Units, we aspire to continue providing innovative products and solutions, to conquer new markets and to strengthen our profitability levels.

The challenges are immense, but our determination is even greater.

Kind regards, António Rios de Amorim Chairman and CEO

"And if we know the world and know how to adapt to the world, we will be successful.

I had this happiness of adapting to the world."

Joaquim Ferreira de Amorim 1936–2023

With great regret, we said goodbye, in September 2023, to Joaquim Ferreira de Amorim, to whom we pay a heartfelt tribute.

A man with a great sense of duty and sensivity, Joaquim Ferreira de Amorim contributed significantly to the success and excellent reputation of Corticeira Amorim, in Portugal and in the world.

His contribution to the development of Corticeira Amorim and its People will forever remain in the memory of the Company, its Directors and Employees.

From all of us, a longing "Farewell!"

Governing Bodies

Term of office 2021‑2023

Board of the General Meeting

Chairman

Paulo de Tarso da Cruz Domingues

Secretary

Rui Paulo Cardinal Carvalho

Board of	Chairman	António Rios Amorim
Directors1	Vice‑Chairman	Nuno Filipe Vilela Barroca de Oliveira
	Member	Fernando José de Araújo dos Santos Almeida
	Member	Cristina Rios de Amorim
	Member	Luisa Alexandra Ramos Amorim
	Member	Juan Ginesta Viñas
	Member	José Pereira Alves
	Member	Marta Parreira Coelho Pinto Ribeiro
	Member	Maria Cristina Galhardo Vilão
	Member	António Manuel Mónica Lopes de Seabra
Audit Committee	Chairman	José Pereira Alves
	Member	Marta Parreira Coelho Pinto Ribeiro
	Member	Maria Cristina Galhardo Vilão
	Member	António Manuel Mónica Lopes de Seabra
Appointments,	Chairwoman	Maria Cristina Galhardo Vilão
Evaluation	Member	Álvaro José da Silva
and Remuneration Committee2	Member	Rui Fernando Viana Pinto
Statutory Auditor	Permanent	ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A., representaded by Rui Manuel da Cunha Vieira
	Substitute	Pedro Jorge Pinto Monteiro da Silva e Paiva
	1 of independente members.	The Board of Directors has an Audit Committee composed exclusively 2 The Appointments, Evaluation and Remuneration Committee was nominated at the Annual General Meeting held on April 28, 2023, pursuant to Article 399(1) of the Portuguese Companies Act and Article 19(4) of the Company's Articles of Association.

Worldwide Presence

3 Agroforestry Units

• Raw Materials Preparation Units 10
• 28 Industrial Units
• 61 Distribution Companies

7 Joint Ventures

Geographical distribution of companies

Country	A	B	C	D	E	Country	A	B	C	D	E	Country	A	B	C	D	E	Country	A	B	C	D	E
Algeria	‑	1	‑	‑	‑	Chile	‑	‑	‑	3	1	Hungary	‑	‑	‑	‑	1	Scotland	‑	‑	‑	1	‑
Argentina	‑	‑	‑	1	1	China	‑	‑	‑	1	‑	Italy	‑	‑	1	‑	4	South Africa	‑	‑	‑	1	‑
Australia	‑	‑	‑	2	‑	Czech Republic	‑	‑	‑	1	‑	Morocco	‑	1	‑	‑	‑	Spain	‑	3	3	3	‑
Austria	‑	‑	‑	2	‑	Denmark	‑	‑	‑	1	‑	Netherlands	‑	‑	‑	‑	1	Sweden	‑	‑	1	‑	1
Brazil	‑	‑	‑	1	‑	Finland	‑	‑	‑	‑	1	Poland	‑	‑	‑	‑	1	Switzerland	‑	‑	‑	‑	4
Bulgaria	‑	‑	‑	1	‑	France	‑	‑	‑			1 11 Portugal	3		4 19 3		6	Tunisia	‑	1	‑	‑	‑
Canada	‑	‑	‑	1	‑	Germany	‑	‑	3	4	‑	Russia	‑	‑	‑	‑	2	USA	‑	‑	1	‑	7

A Agroforestry Units

D Distribution Companies

B Raw Materials Preparation E Joint‑Ventures

C Industrial Units

Organisational Chart

Amorim Florestal Amorim Cork

Production

1 Amorim Florestal, S.A. * Ponte de Sôr – Portugal

2 Amorim Florestal, S.A.* Coruche – Portugal

• 3 Amorim Florestal, S.A.* Abrantes – Portugal
• 4 Amorim Florestal, S.A. Ind. Unit Salteiros* Ponte de Sôr – Portugal
• 5 Cosabe Companhia Silvo‑Agrícola da Beira, S.A.* Lisbon – Portugal
• 6 Herdade de Rio Frio, S.A. Ponte de Sôr – Portugal
• 7 Amorim Florestal III, S.A.* Ponte de Sôr – Portugal
• 8 S.I.B.L. S.A.R.L. Jijel – Algeria
• 9 Amorim Florestal España, S.L.* Algeciras – Spain
• 10 Amorim Florestal España, S.L.* San Vicente de Alcântara – Spain
• 11 Amorim Florestal Mediterrâneo, S.L.* Girona – Spain
• 12 Comatral Compagnie Marocaine de Transformation du Liège, S.A.* Skhirat – Morocco
• 13 Societé Nouvelle du Liège, S.A.* Tabarka – Tunisia

Distribution

37 Amorim Cork, S.A. ‑ Distribution Unit*

38 All Closures In, S.A.*

39 Amorim Cork South Africa (PTY) Ltd. Cape Town –South Africa

Santa Maria de Lamas – Portugal

Paços de Brandão – Portugal

40 Amorim Cork Deutschland, GmbH Bingen am Rhein – Germany 41 Bozales ICAS HITE Argentina Mendoza – Argentina 42 Amorim Australasia PTY Ltd. Adelaide – Australia 43 ICAS HITE Australasia Adelaide – Australia 44 Korken Schiesser, GmbH Vienna – Austria 45 ICAS Brasil Ltda. Garibaldi (RS) ‑ Brazil

46 Amorim Cork Bulgaria, EOOD Sofia – Bulgaria

47 Corchera Gomez Barris, S.A. Santiago – Chile 48 Bourrassé Chile, S.A. Santiago – Chile 49 Industria Corchera, S.A. Santiago – Chile

50 Amorim Cork Beijing, Ltd. Beijing – China

53 Amorim Cork España S.L. San Vicente de Alcántara – Spain

54 ACIC – USA LLC Napa Valley, CA – USA 55 Portocork America, Inc. Napa Valley, CA – USA

56 Trefinos USA LLC Fairfield, CA – USA 57 Amorim Cork America, Inc. Napa Valley, CA – USA 58 Amorim France, S.A.S. Eysines, Bordeaux – France

59 Amorim France S.A.S. Champfleury Unit Champfleury – France 60 Bouchons Prioux S.A.R.L. Epernay – France

51 Agglotap S.A. Girona – Spain 52 Victor y Amorim, S.L. Navarrete (La Rioja) – Spain

• 14 Amorim Cork, S.A.* Santa Maria de Lamas – Portugal
• 15 Amorim Cork, S.A. ‑ Ind. Unit Portocork* Santa Maria de Lamas – Portugal
• 16 Amorim Cork, S.A. ‑ Ind. Unit CTC* Santa Maria de Lamas – Portugal
• 17 Amorim Cork, S.A. ‑ Ind. Unit Valada* Valada – Portugal
  • 18 Amorim Cork, S.A. ‑ Ind. Unit Coruche* Coruche – Portugal
• 19 Amorim Cork, S.A. ‑ Ind. Unit Sousa* Paços de Brandão – Portugal
• 20 Amorim Top Series, S.A.* Argoncilhe – Portugal
• 21 Amorim Top Series, S.A. Unit 2 S. João de Ver – Portugal
• 22 Amorim Champcork, S.A.* Santa Maria de Lamas – Portugal
  • 23 Biocape Importação e Exportação de Cápsulas, Lda. ‑ Capsules* Mozelos – Portugal
  • 24 Biocape Importação e Exportação de Cápsulas, Lda. ‑ Woods* Mozelos – Portugal
• 25 Socori, S.A.* Rio Meão – Portugal
• 26 Francisco Oller, S.A.* Girona – Spain
• 27 Trefinos, S.L. Girona – Spain
• 28 HITE, S.A. Barcelona– Spain
• 29 Elfverson & Co. AB* Påryd – Sweden
• 30 I.C.A.S. S.p.A. Ivrea – Italy
• 31 Pfefferkorn & Co. GmbH Simmern – Germany
• 32 Kapselfabrik, GmbH Bad Kreuznach – Germany
• 33 Philipp Schneider, GmbH & Co. KG Bad Kreuznach – Germany
• 34 Relvas II Rolhas de Champanhe S.A. Montemor‑o‑Novo – Portugal
• 35 Relvas II Rolhas de Champanhe S.A. Mozelos – Portugal
• 36 Elfverson Portugal, S.A. Santa Maria de Lamas – Portugal
• Distribution (cont.)
• 61 Amorim Top Series France S.A.S. Merpins – France
• 62 Ets Christian Bourrasse, S.A.S. Tosse – France
• 63 Sagrera et Cie Reims – France
• 64 Oller et Compagnie, S.A.S. Reims – France
• 65 Portocork France, S.A.S. Bordeaux – France
• 66 ICAS France S.a.r.l. Reims – France
• 67 Prats & Bonany S.A. Reims – France
• 68 Sarl Relvas France Reims – France
• 69 Amorim Cork Hungaayr, Zrt. Veresegyház – Hungary
• 70 Portocork Italia, SRL Milan – Italy
• 71 Trefinos Italia SRL Treviso – Itália
• 72 Amorim Cork Italia, S.p.A. Conegliano – Italy
• 73 Amorim Top Series Scotland, Ltd. Dundee– United Kingdom
• 74 San Bernardo Tappi Spumante S.r.l Ivrea – Italy
• 75 Suboeno, S.A. Saint‑Prex – Switzerland
• 76 PM Oenologie Consulting, S.A.R.L. Saint‑Leonard – Switzerland
• 77 Chaillot Bouchons, S.A. Saint‑Prex – Switzerland

Amorim Cork Flooring Amorim Cork Composites Amorim Cork Insulation Support Areas

• 78 Amorim Cork Flooring, S.A.* S. Paio de Oleiros – Portugal
• 79 Amorim Deutschland GmbH* Delmenhorst – Germany
• 80 Cortex Korkvertriebs GmbH Nürnberg – Germany
• 81 Amorim Flooring Austria GmbH Vienna – Austria
• 82 Timberman Denmark A/S Hadsund – Denmark
• 83 Amorim Flooring North America, Inc.* Maryland – USA
• 84 Amorim Benelux B.V.* Tholen – Netherlands
• 85 Dom Korkowy, Sp. Zo.o Krakow – Poland
• 86 Amorim Flooring Rus, LLC Moscow – Russia
• 87 Amorim Flooring Sweden AB Mölndal – Sweden
• 88 Amorim Flooring (Switzerland) AG* Zug – Switzerland
• 89 Korkkitrio Oy. Tampere ‑ Finland
• 90 Amorim Flooring Canada, S.A. Toronto ‑ Canada
• 91 Amorim Cork Composites, S.A.* Mozelos – Portugal
• 92 Amorim Sports, Lda.* Mozelos – Portugal
• 93 Corkeen Europe, Lda.* Mozelos – Portugal
• 94 Navicork by Amorim, Lda. Mozelos– Portugal
• 95 Amorim Cork Composites GmbH Delmenhorst – Germany
• 96 Amorim Cork Composites, Inc.* Trevor, WI – USA
• 97 Corkeen North America, Inc. Trevor, WI – USA
• 98 Amorim Sports North America, Inc. Trevor, WI – USA
• 99 Amorim Cork Composite, LLC Moscow – Russia
• 100 Amorim Cork Insulation, S.A.* Mozelos – Portugal
• 101 Amorim Cork Insulation, S.A.* Silves – Portugal
• 102 Amorim Cork Insulation, S.A.* Vendas Novas – Portugal
• 103 Amorim Cork Research, Lda.* Mozelos – Portugal
• 104 Amorim Cork Services, Lda.* Mozelos – Portugal
• 105 Amorim Cork Ventures, Lda.* Mozelos – Portugal
• 106 Amorim Cork IT, SA Mozelos – Portugal
• 107 Amorim ‑ Viagens e Turismo, Lda Mozelos – Portugal

* Companies belonging to the sustainability perimeter

Education changes the world. Through a protocol signed with the prestigious Parsons School of Design, we are celebrating the value of cork and publicising the technical and sustainability benefits of this exceptional material for design and architecture.

Main Events

1. Corticeira Amorim signs the Floresta 2030 commitment

In the interests of the forests and the future, Corticeira Amorim has joined 24 other organisations, entities, and enterprises in the forestry sector by signing the Floresta 2030 commitment, whose aim is to protect Portuguese forests and their ecosystems. This commitment challenges the signatories to make a positive and active contribution over the next decade to the preservation and enhancement of forests, which make up 36% of Portuguese territory. The Floresta 2030 initiative's manifesto emphasises the importance of working together to develop a forest that is "better managed, more plural, more inclusive, more resilient, more valued and environmentally and socially beneficial", thereby ensuring it can act as a barrier to climate change and assert itself as the linchpin of an innovative bioeconomy.

2. Amorim Cork Composites celebrates its 60th anniversary

Amorim Cork Composites, the world leader in the development of new cork composite materials, celebrated its 60th anniversary in 2023. The company was founded in 1963 on the premise that with cork, as in nature, nothing is lost, nothing is created, everything is transformed. Forming part of the Organisation's verticalization and diversification strategy, the Company emerged from the need to add value to cork and give a new life to the 70% of waste generated in the production of cork stoppers by Amorim & Irmãos (now Amorim Cork), transforming such waste into granulates and cork agglomerates for multiple sectors and applications. Initially called Corticeira Amorim, in 2007 Amorim Cork Composites assumed its current name and structure, following the merger of the Cork Rubber and Technical Agglomerates business units. Present in more than 80 countries, with two industrial units, one in Portugal and the other in the USA, and developing solutions using a unique raw material such as cork, with applications

in industries as diverse and demanding as aerospace, construction, mobility, sealing, energy, playgrounds and sports flooring, Amorim Cork Composites continues to be founded on innovation and sustainability, and is always at the forefront of breaking new ground for cork.

3. Corticeira Amorim has signed the More and Better Jobs for Young People Pact, an initiative promoted by the José Neves Foundation

Corticeira Amorim has signed the More and Better Jobs for Young People Pact, an initiative promoted by the José Neves Foundation that has received support from 50 Portuguese companies. Investing in young people is investing in the future and, for this reason, the signatories pledge to take action by 2026 to improve youth employment, implementing concrete measures aimed at, among other things, increasing the percentage of young people hired, ensuring more of them remain with the company, guaranteeing them quality jobs (with a level of pay and duties appropriate to their qualifications), supporting and developing youth training and giving young people a voice by increasing their participation on company boards.

4. On International Women's Day, Corticeira Amorim launches the Embrace Equity campaign

To mark International Women's Day, Corticeira Amorim launched a campaign for gender equality with the slogan #embraceequity. The initiative challenges male and female employees to share a photo of them hugging themselves on social media, as a reminder of the importance of championing equity in order to overcome inequalities. The campaign, for a future with opportunities for all people, regardless of gender, emphasises that equity can only be achieved if everyone contributes and takes the initiative.

On International Women's Day Corticeira Amorim launches the #embraceequity campaign.

The Thick Skin – an initiative in partnership with the Parsons School of Design. Alqueva Solar Park wins European Sustainable Energy Awards.

5. The Thick Skin: an initiative in partnership with the Parsons School of Design

The course dubbed "The Thick Skin: Cork as Material for Designing New Futures" is the first initiative launched by Corticeira Amorim and the renowned Parsons School of Design in the United States as part of the collaboration agreement between the two organisations. The aim of the agreement is to provide students at the New York university with a better and more in‑depth knowledge of cork as a material of choice in the fields of industrial design, architecture, the arts and interior design, emphasising the benefits, qualities and unique characteristics of this raw material. The Thick Skin course, led by designer and Associate Professor of Product and Industrial Design, Daniel Michalik, runs for one semester and, in addition to the theoretical and practical component at Parsons, includes an immersive week of learning in Portugal at the i.cork factory, Amorim Cork Composites' innovation factory. During this period, the students delve into a hands‑on programme that brings them into contact with new processes, new formulas, and new technologies for working with cork.

6. SuberDesign wins the C‑IDEA Golden Award 2022

The Suber Cork Second Life project, launched by Amorim Cork Italia, won the C‑IDEA Golden Award 2022, one of the most prestigious annual design prizes in Australia. After a meticulous selection process involving 48 judges from 37 countries, the international panel recognised Amorim Cork Italia's initiative, which has been giving a second life to recycled cork stoppers since 2019. The Suber Cork Second Life project stems from the ETICO programme, launched in 2011, which has 6,000 recycling

Sea Deck Cork cork stopper installation. SuberDesign wins the C-IDEA Golden Award 2022.

collection points for cork stoppers and, with the help of some 1,000 volunteers, has collected more than 1,000 tonnes of them. The cork stoppers are first transformed into small granules which, after being combined with other materials, give rise to new objects.

7. Corticeira Amorim is considered one of the most attractive companies to work for, according to Randstad's Employer Brand Research study

Corticeira Amorim has once again been recognised as one of the most attractive companies to work for in Portugal, according to Randstad's Employer Brand Research. According to the study, which evaluates the 150 largest employers in Portugal, Corticeira Amorim features in the top 20 of the most attractive companies to work for in the country and in the top 3 in the Industry category.

8. Sea Deck Cork cork stopper installation presented at Milan Design Week 2023

More than two million recycled cork stoppers, collected from all over Italy, were used for the Sea Deck Cork floating installation, a project for Milan Design Week 2023. The project, designed by the AMDL CIRCLE studio and Michele de Lucchi for Azimut Yachts, was a tribute to cork and sustainable mobility, inviting passers‑by to get closer to nature by taking a walk on both cork and water, along a stretch over the Darsena river. With an emphasis on renewable energies and reducing the carbon footprint, the experience consisted of a five‑stop tour, including a station where visitors could sit on cork benches.

9. Alqueva Floating Solar Park wins in the Innovation category at the European Sustainable Energy Awards 2023

A winner at the European Sustainable Energy Awards, the Alqueva Floating Solar Park is a success story born from a partnership between EDP, Amorim Cork Composites and Isigenere. The cornerstone of this landmark photovoltaic project – the largest in Europe in a reservoir – is cork, thanks to a collaboration between Amorim Cork Composites and Isigenere, which developed an innovative material from a unique combination of cork composites and recycled plastic. This new material, used in the floats that support the solar panels, has made it possible to reduce the weight of the platform by 15% and has helped mitigate the carbon footprint of float production by 30%, preventing emissions totalling some 2,800 tC02 /year and contributing to the energy transition. The European Sustainable Energy Awards, presented by the European Commission, are the largest initiative dedicated to renewable energy in Europe.

10. Cork staircase by Roz Barr Architects on show in the Building Centre (London)

The world's first suspended cork staircase can be visited at the Building Centre in London, a space dedicated to celebrating the built environment. Since 1931, it has organised exhibitions and public events, and houses an extensive library of products, with an emphasis on architecture and engineering. Roz Barr Architects was responsible for the Building Centre's renovation project and, for the new gallery, they designed a staircase using an intrinsically sustainable and carbon‑negative material: cork. To realise this visionary project, the studio teamed up with Amorim Cork Composites, which made the idea a reality, reinventing the way in which a natural and organic material like cork can be used in design and architecture in order to create a 'self‑sustainable' staircase.

11. Corticeira Amorim has established a partnership with the Pratt Institute

As part of a partnership with the Pratt Institute, Corticeira Amorim hosted a group of students from the renowned New York educational institution, who were given the opportunity to learn more about cork and its processes. After spending the first semester developing design projects that incorporate cork, the students moved on to the practical side, visiting Corticeira Amorim for a week to get to know the company and learn more about cork, in particular at Amorim Cork Composites' i.cork factory, a state‑of‑the‑art innovation centre for developing new materials and technologies.

Corticeira Amorim and Simone Brewster present Spirit of Place at the London Design Festival.

© Ed Reeve

Corticeira Amorim supports the exhibition Generation Proxima: Emerging Environmental Practices in Portuguese Architecture, in New York.

12. Amorim Wise honoured at Global Prize Designs 2023

Two capsule collections launched by Amorim Wise – Burel and Origem – both developed in partnership with the Vicara Design Studio, were winners in the Furniture category at Global Prize Designs 2023 in the United States. Burel is a wall coverings collection that combines cork and wool, while Origem is inspired by the colours of the cork oak forest after debarking, resulting in a unique palette of flooring tones. With their sustainable spirit, offering all cork's benefits as regards comfort, acoustics and well‑being, these projects show how important cork can be in contemporary design.

13. Corticeira Amorim acquires a 55% stake in the VMD Group

Through Amorim Cork, Corticeira Amorim has acquired a 55% stake in the VMD Group, the Swiss leader in oenological and bouchage products, for 11.6 million Swiss francs. VMD produces and markets stoppers, capsules, oenological products, barrels, and equipment for wineries, combining technology, know‑how and tradition to make top quality products. With this deal, Corticeira Amorim is strengthening its position in Switzerland and acquiring a significant stake in a group that owns brands recognised for their quality, as well as having a solid and diversified portfolio and a close relationship with its customers.

14. We are ON! New Generations inspires Corticeira Amorim's young employees

The first meeting of Corticeira Amorim's young employees, We are ON! New Generations, celebrated Corticeira Amorim's spirit, mission, and values with the younger generation. Held at the Círculo Universitário do Porto venue, it showed that the Organisation's future is in good hands. The meeting kicked off with a team‑building session and included a speech by the CEO, António Rios de Amorim, a panel on the Future of Work, with participation from Professor Pedro Santa Clara, and a Q&A session entitled Ask the CEO, with António Rios de Amorim responding to an audience brimming with enthusiasm, boldness, and curiosity, as well as a sense of belonging and responsibility.

15. Corticeira Amorim launches an ESG credit line for cork suppliers, in an innovative partnership with Caixa Geral de Depósitos

Through Amorim Florestal, Corticeira Amorim has launched the first ESG operation in the sector, in an innovative partnership with Caixa Geral de Depósitos. The agreement aims to promote sustainability practices, not only within the group but also throughout its network of partners, and centres around a revamped financing line dedicated exclusively to cork suppliers, with particularly advantageous conditions linked to sustainability criteria. This is the first supply chain financing implemented by Corticeira Amorim and is aimed at promoting the best ESG practices among our partners. The financing spread is determined by Environmental, Social and Governance (ESG) ratings and forestry certification by the Forestry Stewardship Council (FSC), which are directly proportional to the respective level of development of the suppliers' ESG and forestry management practices.

16. Amorim Cork opens two new factories in Portugal

Corticeira Amorim now has 32 factories (20 in Portugal), following the opening of two new Amorim Cork industrial units in Mozelos. The two new units – Biocap and Elfverson, the latter in partnership with J.C Ribeiro and dedicated to the production of wooden capsules for cork stoppers – cover some 55,000 square metres, expanding the industrial sector and doubling production. Both factories integrate cutting‑edge technologies such as Artificial Intelligence and robotics. Combining two noble materials, cork and wood, it is estimated that, when fully operational, these factories will employ 75 people, further strengthening the industrial fabric of Santa Maria da Feira.

17. Green Cork Schools

The result of a partnership between Quercus, Corticeira Amorim and other organisations, the Green Cork Schools programme establishes partnerships with educational and community groups to promote environmentally conscious initiatives that preserve nature. Specifically, the programme works with schools, private institutions and scouts to encourage more sustainable practices, in particular through the recycling of cork stoppers. This initiative is part of Green Cork – the national programme for the selective collection and recycling of cork stoppers, created in 2008 with the aim of recycling and transforming cork stoppers into other products and financing the planting of native Portuguese trees, in particular the cork oak, through the 'Floresta Comum' (Common Forest) project.

18. Corticeira Amorim supports the exhibition Generation Proxima: Emerging Environmental Practices in Portuguese Architecture, in New York, helping to promote sustainable practices in Portuguese architecture

Emphasising cork's crucial role in Portuguese architecture's sustainable revolution, Corticeira Amorim teamed up with the exhibition Generation Proxima: Emerging Environmental Practices in Portuguese Architecture, promoted by the New York chapter of the American Institute of Architects (AIA) and held at the New York Centre for Architecture. Curated by Pedro Gadanho, the exhibition featured projects by seven Portuguese architecture studios – Artéria, Coletivo Warehouse, Gorvell, Nuno Pimenta, Oficina de Arquitetura Pedrez, OODA and Ponto Atelier – which, in both their practice and research, are leading the "environmental shift" in sustainable architecture and construction amid the climate emergency. Combining performance and sustainability, cork features prominently in the exhibition, being used in plinths, models and mock‑ ‑ups, and the entire exhibition space includes underlays and agglomerate from Amorim Cork Composites and expanded cork agglomerate from Amorim Cork Insulation.

19. Corticeira Amorim and Simone Brewster present Spirit of Place at the London Design Festival

Five large‑scale cork sculptures make up Spirit of Place, the installation created by British artist Simone Brewster, in partnership with Corticeira Amorim, for the London Design Festival 2023. Inspired by the verticality and magic of cork oak forests, which the artist discovered on a visit to Portugal to work on the project with Corticeira Amorim, Spirit of Place occupied London's public space with 5 columns around 2.5 metres high, made from different cork composites. The project included materials and production by Amorim Cork Composites and created a positive impact thanks to the materiality and characteristics of cork. Playing with shapes, textures, dimensions, and colours, Spirit of Place involves and challenges the community through experimentation and pure beauty, highlighting the importance of sustainability. As well as underlining the vital role that Corticeira Amorim plays in conserving cork oak forests and supporting biodiversity, this project reinforces the importance of cork as a 100% natural, renewable, and recyclable material for the art and architecture of the future.

20. Cork lights up the Golden Vines®2023 awards trophy

Cork once again featured at one of the most emblematic ceremonies in the world of wine, the Golden Vines® awards, celebrating the art of cork and wine culture. In partnership with British silversmiths Grant Macdonald London and Liquid Icons, Corticeira Amorim once again had the honour of producing the trophy for the initiative, this time in a creation by British designer Shantell Martin and French artist Jonathan Bréchignanc, which captures the unique intersection between art, cork, wine, and nature. Combining sophistication and sustainability, cork once again shone brightly at this flagship event, characterised by creativity, innovation, and inspiration.

Amorim Wise honoured at Global Prize Designs 2023.

We are ON! New Generations inspires Corticeira Amorim's young employees.

Dan Graham's exhibition at Serralves uses cork from Amorim Cork Insulation.

Suber‑Protected Villages project launched by Corticeira Amorim and Quercus.

François Audouze's cork stopper collection on display at Heritage House.

Amorim Cork Composites launches Navicork in the marine boat decking sector.

21. Dan Graham's exhibition at Serralves uses cork from Amorim Cork Insulation

Cork featured prominently in the exhibition Not Post Modernism. Dan Graham and 20th‑Century Architecture, at Serralves, the artist's final exhibition before he passed away in 2022. Curated by Bartomeu Marí, this is an exhibition about Graham's intellectual methodology and some of his "architectural heroes", that is, the studios and architects that had a profound impact on the artist's work and thinking, as selected by him. At the heart of the exhibition is the transformative power of cork, a material that transcends mere functionality to become an integral element in design and sustainability. Corticeira Amorim's support for the exhibition emphasises the innovative use of cork in contemporary architecture and demonstrates its versatility and ecological benefits.

22. More than 2,500 cork oaks planted by Corticeira Amorim volunteers at Herdade da Baliza

In a now customary initiative, around 100 Corticeira Amorim volunteers gathered for the annual planting of cork oaks, planting more than 2,500 saplings at Herdade da Baliza, in Castelo Branco. The initiative, which took place in November, was launched in partnership with Quercus as part of the Green Cork programme. Since 2011, 27,000 trees, mainly cork oaks, have been planted with the support of Corticeira Amorim volunteers in a major contribution to reforestation efforts. Every year, Corticeira Amorim volunteers help to plant cork oaks, becoming actively involved in efforts to enhance cork oak forests and make them more viable. These forests are so important for regulating the hydrological cycle, protecting against soil erosion, promoting valuable biodiversity, reducing the risk of desertification, consolidating barriers against fires, and maintaining important natural CO2 sinks – an invaluable set of ecosystem services, as well as drivers of economic, environmental and social development.

23. Suber‑Protected Villages project launched by Corticeira Amorim and Quercus

Corticeira Amorim supported the Suber‑Protected Villages project, an innovative initiative promoted by Quercus. Deeply aligned with Corticeira Amorim's strategy of accountability and sustainability, the programme was launched in Unhais da Serra, where 500 cork oaks were symbolically planted and sown with the involvement of the local community, including 30 volunteers from the Escola EB 2/3 de Paul school. This pilot project, in an area previously devastated by a major fire in 2018, is the start of a wider journey to protect our villages and the natural environment that surrounds them. The programme plans to expand to other geographical areas, inviting applications to allow more villages to join the project in the 2024‑2025 planting cycle, the goal being to plant at least 20,000 trees and thereby ensure the territory is both sustainable and protected.

Heritage House: Corticeira Amorim's new museum, celebrating cork's legacy and future.

24. Heritage House: a legacy worth visiting

Inaugurated in 2023, the Heritage House in Santa Maria de Lamas is Corticeira Amorim's new museum, celebrating cork's legacy and future. The space pays tribute to key moments in Corticeira Amorim's history, which spans more than 150 years, since the Company began operating as a producer of cork stoppers for the Port wine industry, thereby intertwining it with the history of cork. The renovation project was designed by Pedro Caride (Por Vocação) and architects Hugo Dourado and Ana Batista (Coletivo Mel), who worked alongside Corticeira Amorim to bring this space to life, creating an immersive experience that offers a thrilling dive into the Corticeira Amorim universe.

25. François Audouze's cork stopper collection on display at Heritage House

François Audouze, one of France's best known and most respected wine collectors, and a great connoisseur of rare and old wines, donated part of his collection of cork stoppers and capsules to Amorim Cork, including more than 4,000 cork stoppers dating from 1700 to the present day. The stoppers are now on display at Heritage House, Corticeira Amorim's new museum venue. François Audouze has been collecting old wines for more than 50 years and has one of the largest collections in the world, comprising more than 40,000 bottles, some of which date back to 1690. During his life and career, he has opened more than 20,000 bottles. Preserving the memory of the wine and the message that each bottle contains, Audouze meticulously collects that foremost custodian of memories: the cork stopper.

26. Amorim Cork Composites launches Navicork in the marine boat decking sector

At a time when the maritime industry is facing profound sustainability challenges, Corticeira Amorim, through Amorim Cork Composites, has launched Navicork, a new brand of sustainable cork decking solutions for various types of vessels. Combining innovation, performance, and design, Navicork uses cork as its raw material, a light, resilient material with excellent levels of thermal and acoustic insulation, which is 100% natural, renewable, and recyclable, thereby making a vital contribution to reducing environmental impacts and decarbonising maritime and river transport. Supported by state‑of‑the‑art technology and Amorim Cork Composites' spirit of innovation in developing new cork composite solutions, Navicork is taking the lead in the cork marine decking sector and having a positive impact on the maritime industry.

27. ASICS shop in Tokyo with cork flooring

The renowned Japanese sports brand ASICS has chosen Amorim Wise cork flooring by Amorim Cork Flooring for its Tokyo shop. For ASICS, every step counts, and every single step is emphasised when you walk on cork, in a superior experience that combines comfort with sustainability. The flooring chosen, in the Originals Shell look from the Cork Inspire line, improves indoor air quality, but also, thanks to its natural thermal and acoustic properties, increases comfort levels inside the shop, aligning perfectly with ASICS' purpose and in perfect harmony with Corticeira Amorim's values.

Sportino shops with expanded cork agglomerate solutions.

Puma shop in South Korea with flooring from Amorim Cork Flooring's Cork Inspire line. Wicanders Wise has a 100% PVC-free portfolio.

© Adrià Goula

FLORA project in Barcelona explores Amorim Cork Insulation solutions.

28. Sportino shops with expanded cork agglomerate solutions

The Sportino shop in Porto incorporates cork solutions from Amorim Cork Insulation, in a design based on versatility and elegance. Thanks to its unique characteristics, cork plays a key role in creating a truly remarkable environment, in a 150 m2 space with walls clad in expanded cork agglomerate. As part of the design, each block of cork merges with the trainers and sports items, in a perfect balance between tradition and innovation that makes the most of nature and technology alike.

29. Puma shop in South Korea with flooring from Amorim Cork Flooring's Cork Inspire line

The Cork Inspire line, from Amorim Wise by Amorim Cork Flooring, was chosen for sports brand Puma's new concept store in Shinsegae, South Korea. The cork flooring brings comfort and sustainability to the heart of the space and is fully aligned with Puma's new environmental approach. Cork Inspire has a negative carbon balance, allowing carbon sequestration of up to ‑101 kg CO2 /m², the equivalent of a journey of 1010 kilometres in an electric car, according to a study by EY*. In addition to its excellent sustainability features, the look chosen, Originals Rhapsody, has a unique, natural cork finish that fully evokes nature.

* More information available at: https://pim.amorimflooring.com/uploads/files/documents/ products/Sustainability%20documents/Disclaimer\_EN.pdf

30. FLORA project in Barcelona explores Amorim Cork Insulation solutions

As part of the journey to a more sustainable and biodiverse future, Corticeira Amorim has joined the FLORA project in the Parc Natural de Collserola nature reserve in Barcelona, led by students from the Master's course in Advanced Ecological Buildings and Biocities. This innovative project uses Amorim Cork Insulation solutions and reflects a strong commitment to sustainability and innovation, showcasing the key contribution a material such as cork can make to emerging, cutting‑edge architecture.

31. Corticeira Amorim announces City Cortex in Greater Lisbon in 2024

City Cortex is an international programme with cultural roots, which explores the intersection between contemporary urban contexts and one of the most versatile and sustainable raw materials that nature has to offer: cork. Through the contributions of internationally recognised architects and designers, City Cortex aims to create original projects for public and semi‑public spaces in a wide range of cities, starting in Lisbon. Liz Diller, Eduardo Souto de Moura, Gabriel Calatrava, Leong Leong, Sagmeister & Walsh, and Yves Béhar have designed innovative installations that use cork as a raw material, employing all the associated processes for working with it. City Cortex, conceived by Corticeira Amorim, curated by Guta Moura Guedes, and developed by Experimenta Design, will open in Lisbon in June 2024.

32. Wicanders Wise has a 100% PVC‑free portfolio

In 2022, Amorim Cork Flooring reinforced its commitment to sustainability, announcing that it would boast a 100% PVC‑free portfolio by 2025. In a historic milestone perfectly aligned with Corticeira Amorim's global strategy, Amorim Cork Flooring is accelerating its strategic objectives, achieving the target ahead of schedule and showcasing an entire range of 100% PVC‑free products in 2024. The company's strategy, now 100% green, was based on replacing the ranges that still used PVC with new products based on digital printing technology. Around 10 million euros were invested in acquiring a new digital printing line which, in addition to the lifelike quality of the printed image (directly onto cork), succeeds in replicating the texture of the visuals, whether based on wood or stone. This development gave rise to the Wicanders Wise brand, bringing together the two existing brands in a fusion between the comfort and performance of Wicanders and the sustainability of Amorim Wise.

Corticeira Amorim announces City Cortex in Greater Lisbon in 2024.

The artist Simone Brewster highlighted the beauty and sustainability of cork in his large‑scale installation, "Spirit of Place", created for the London Design Festival. The installation, which has gained great visibility in the design world, was implemented and made with materials supplied by Amorim Cork Composites.

Amorim Cork Composites 60 Years

"At Amorim Cork Composites, we set out every day to transform and reinvent the world: we reuse, recycle and create innovative solutions, adding value to cork in the process."

Amorim Cork Composites is an outstanding world leader in the development of new cork composite materials, in applications for industries as diverse as aerospace, construction, mobility, sealing, energy, playgrounds, and sports flooring, among many others. It currently has a presence in more than 80 countries. The two industrial units, located in Portugal and the USA, manufacture innovative materials and solutions for worldrenowned organisations such as NASA, Mazda and Siemens.

To understand the history of Amorim Cork Composites, you have to go back to the period following World War II, when the third generation of the Amorim family saw new business horizons, taking advantage of the optimism that boosted international trade and global economic recovery, and started a process that would change the Portuguese cork industry forever.

Recognising the need to add value to cork and looking to give new life to the 70% of waste of cork generated in the production of cork stoppers by Amorim & Irmãos (now Amorim Cork), by transforming it into granulates and cork agglomerates for multiple sectors and applications, it was decided to diversify the company's products. In 1963, this strategy of verticalization and diversification culminated in the creation of Corticeira Amorim, now known as Amorim Cork Composites.

The 1980s saw a significant increase in the production of agglomerates, expanding their application to technologically advanced sectors.Due to their outstanding performance in thermal, acoustic and anti-vibration insulation, lightness, compressibility, fire resistance and sealing capacity, among other properties, cork products began to be used in construction, car sealing and the aerospace industry.

The growing demand for these materials on the North American continent led to the creation of a subsidiary in Canada in 1981. This unit laid the foundations for entering the US market.

In 2007, Amorim Cork Composites assumed its current name and structure, following the merger of the Cork Rubber and Technical Agglomerates business units. This was a crucial step in the company's evolution, enabling it to boost business development, consolidate customer loyalty and improve operational efficiency.

Having pioneered disruptive concepts throughout its history, Amorim Cork Composites has a culture of innovation embedded in its very DNA. With the aim of maintaining a leading position in the sectors and markets in which it operates, in 2018 it decided to create the i.cork factory – an innovative pilot plant entirely dedicated to research, design and the development of new products, materials and applications.

Using a variety of new processes and technologies, such as extrusion, moulding, thermoforming, continuous pressing and lamination, among many others, the intrinsic properties of cork are combined with the properties of other materials, increasing their technical performance and broadening the range of applications. This innovation hub also acts as a learning centre, continuously collaborating with universities, research centres and companies in the search for revolutionary solutions based on the functional and sensory characteristics of cork.

Protecting the future requires rethinking the way we approach waste. Committed to a circular future, in which "nothing is lost and everything is transformed", in 2019 Amorim Cork Composites invested in a new agglomeration line, which allows cork to be combined with materials from industrial waste, bringing the concept of circularity to other industrial sectors, such as the footwear and automotive markets.

This investment enables the industrialisation and large-scale production of some of the new products and solutions designed at the i.cork factory. One example is the underlay created in partnership with Nike and launched in the US in 2021, the result of a composite made of cork and waste from the US multinational's sports shoe production.

At Corticeira Amorim, cork has long since ceased to be used in cork stopper production alone and today, some 60 years later, Amorim Cork Composites continues to focus its activity on enhancing the value of this incredibly sustainable, natural, renewable, recyclable, reusable, versatile and inimitable raw material, with a view to designing and developing materials and solutions for a wide variety of sectors.

In the aerospace industry, after the launch of the Space Shuttle and the dozens of missions conducted by NASA and ESA in recent decades, Amorim Cork Composites continues to develop thermal protection materials for rockets and satellite components (more than a third of those currently launched into space incorporate Portuguese cork). It has also actively participated in designing and developing solutions aimed at responding to the latest trends in the aerospace industry, as is the case with reusable launchers.

Amorim Cork Composites is also involved in revolutionising the mobility sector. As a result of continuous investment in R&D+I, cork has been used in the structural components, interior panels and flooring of various means of transport. Although not always visible, cork can be found in cars, buses, caravans, high-speed trains, aeroplanes and ships. Cork's natural characteristics are the differentiating factors in all of these applications. Its lightness, durability and heat and fire resistance, combined with its thermal acoustic and anti-vibration insulation capacity, provide greater safety and comfort for passengers. At the same time, cork helps to reduce energy consumption and the environmental impact of these means of transport. The future of mobility is electric, and one of the company's priorities is to offer solutions that protect electric batteries. In this area, the company has developed sealing and thermal protection materials to minimise the risk of batteries overheating, thereby ensuring vehicle and passenger safety.

The energy sector is undergoing a profound transformation, both in terms of renewable energy production and its subsequent distribution, storage and consumption. In this field, Amorim Cork Composites has been developing antivibration and sealing materials for electrical transformers and exploring innovative solutions that contribute to more responsible energy production. One such example is the development of a float for photovoltaic panels, with cork being chosen as a raw material for its lightness, impermeability and reduced environmental impact. Produced with an innovative composite (cork polymer compound), developed at the i.cork factory, this float uses cork with recycled polymers, a more environmentally friendly option than the conventional floats made from virgin plastic.

In the construction sector, Amorim Cork Composites is continuously developing acoustic insulation, vibration control and shock absorption solutions, meeting the most stringent standards, in line with a market trend towards construction materials that contribute to reducing the carbon footprint of buildings.

Utilising waste from the cork industry to design disruptive and innovative products is the principle behind the creation of Corkeen, a revolutionary, patented playground surface that combines safety, accessibility and sustainability. Installed in situ, this system has excellent drainage capacity, reduces surface temperature thanks to cork's thermal insulation properties, and offers high technical performance in line with the strictest safety standards.

The development of state-of-the-art infills for lawns and sports surfaces has been another of the company's major endeavours. In football stadiums, cork demonstrates its superior value as an exceptional material, improving safety, comfort, health, durability and sustainability when compared to the synthetic materials traditionally used for this purpose.

In 2021, the establishment of a joint venture with HAPE, a world leader in the field of wooden toys, allowed the company to enter this business sector. From this partnership the cork toy brand Korko emerged, which responds creatively to the growing demand for safer, more ecological and natural products.

At the end of 2023, Amorim Cork Composites launched the Navicork brand, offering a portfolio of sustainable, highperformance solutions for luxury yacht decks, at a time when the maritime industry is facing profound challenges in terms of its environmental impact.

Remaining faithful to the innovation and sustainability commitments that have driven it over the last six decades, Amorim Cork Composites will no doubt continue to shape the future by investing in new technologies and developing innovative cork composites, contributing value to new applications in the process.

Next pages:

As a result of continuous investment in R&D+I, cork is now used both in structural elements (such as interior and exterior panels, flooring and seats) and in the interior components of various means of transport.

Navicork - Portfolio of sustainable, high-performance solutions for luxury yacht decks. Integrated into the dashboard, sun visors and doors, cork is used inside the MINI Strip, launched in 2021.

Only cork has the necessary characteristics to preserve the world's finest wines and accompany their ageing. François Audouze's cork stopper collection, donated to Corticeira Amorim, pays testimony to the value of cork, that has a unique relationship with wine and is an invaluable guardian of treasures.

Consolidated Management Report

1. ECONOMIC TRENDS IN 2023

1.1 THE WORLD ECONOMY

The global economy is expected to have grown by about 3.1% in 2023, below the growth rate of both the previous year and the average growth rate in the decade previous to the pandemic, but significantly better than was forecast 12 months ago. Performance has been uneven, with advanced economies registering a slowdown, while emerging and developing economies matched the growth levels of 2022. Geopolitical instability relating to the persistence of the war in Ukraine and numerous smaller but interconnected conflicts continued to place additional pressure on the global economy, posing new challenges for businesses and supply chain management. Disaggregation between economic blocs has intensified. International trade is projected to have slowed considerably. Inflation is estimated have decelerated globally, especially in the more advanced economies. Price increases were nonetheless substantially higher than levels that would correspond to price stability. Monetary policy was generally restrictive, with some relief appearing only in the final months of the year and only in emerging economies, where the upward trend in prices had been reversed and signs of an economic slowdown were already emerging. By the end of the year, oil and natural gas prices had fallen below the level of the previous year.

In developed economies, especially North America and the Eurozone, 2023 was characterised by increasingly restrictive monetary policies, a continuation of the trend that began in 2022, in response to the sharp increase in inflation. Interest rates rose substantially and at a rapid pace as monetary authorities sought to recover from their late start in managing price stability. US interest rates gradually rose to 5.25%-5.50%, a level not seen since 2000, while the ECB implemented successive increases, lifting Euro rates to 4.5%, their highest level since 2001. This succeeded in reversing the upward trend in inflation, only gradually at first, but later more sharply as energy prices corrected and aggregate demand adjusted to the less favourable financial conditions. At the same time, central banks began gradually to withdraw the hyper-expansionary measures they had previously implemented and increased in response to the economic impact of the pandemic, producing excess liquidity in the financial system. The year ended with financial markets expecting the central banks of the world's major economies to reverse their monetary policies and for inflation to fall to about 2%, a level consistent with price stability.

Emerging and developing economies began to debate not only a reversal of the cycle of restrictive monetary policies (as in Brazil), thanks to the more timely and swift action taken, but also an earlier reversal of the inflationary cycle. China, however, proved an exception, maintaining its monetary policy throughout the year and even opting to provide extraordinary support in the last months of 2023. The global labour market was notable for its resilience, job creation and the increased bargaining power of trade unions – the prospect of a temporary recession and difficulties in finding workers possibly having upheld employment levels.

The US was projected to have grown at a faster pace than in 2022, at about 2.5%, as it benefited from the Biden Administration's policies supporting re-industrialisation and the return to US soil of activities that had previously been relocated overseas in a clear move towards onshoring. The positive impact of measures included in the Inflation Reduction Act, approved in 2022, were especially notable in this regard. The US financial system became increasingly sensitive to monetary conditions, which required regulator intervention and generated increased risk aversion. The labour market proved highly resilient, creating jobs far beyond the number expected. Inflation fell from 6.4% at the end of 2022 to 3.1% in December 2023. The much talked about recession that the yield curve appeared to predict did not materialise.

The impact of the Ukraine war on structural conditions for long-term growth affected the Eurozone as a whole, not only Germany. Cheap, reliable energy, support for industrial production, and an attractive global export market for European products where the advantages of globalisation were evident have all begun to be questioned over the past two years. Labour peace may have been weakened by the sharp drop in purchasing power in 2022. The tightening of financial conditions limited domestic demand, while export demand was impacted in 2023 by the Chinese economy's false start-ups. Economic activity is expected to have increased only marginally by approximately 0.5%, but the overall climate is one of deep stagnation and increased long-term challenges. After overcoming the crisis caused by the pandemic, questions are now being raised about whether European security is at risk. Inflation surprisingly decreased by about 3 basis points to 5.4% in 2023 (2.9% in December of the previous year).

China was late in reopening its economy after the tough restrictions imposed by the zero-COVID policy that characterised the end of 2022 and beginning of 2023. Expectations that economic activity would resume were high, but did not materialise. The economy faced structural challenges as the imbalances of the growth pattern adopted in recent years became evident in the real estate sector and the demand for credit. The Chinese economy is expected to have grown at a pace below centrally-set targets, expanding from 3% in 2022 (when it was affected by mobility restrictions) to 5.2% in 2023. This was China's lowest growth rate in recent decades, excluding the pandemic period.

1.2 PORTUGAL

Portugal is projected to have recorded growth of about 2.3%, a rate significantly higher than the Eurozone average. Consumption began to recover at the end of the year, benefitting from improved sentiment resulting from a reduction in income tax and improved financial conditions reflecting an expected change in monetary policy, as well as a persistently positive performance by the tourism sector. External demand made a gradually more positive contribution to growth. The Portuguese economy's financing capacity is also estimated to have improved in 2023. The country is expected to have recorded a budget surplus in 2023, while public debt is likely to have fallen below 100% of GDP for the first time since 2010. An annual reduction in debt of about 13.7 percentage points is projected, down from 112.4% of GDP in 2022. Inflation is expected to have fallen to 4.3% in 2023, a level reflecting successive reductions in price increases to the extent that year-on-year prices increases in November and December were below 2%. The labour market remained generally robust in 2023, supported mainly by the services sector. The unemployment rate is expected to have settled at 6.5% at the end of year, up from 6.2% in December 2022. The number of people in employment is projected to have risen gain, but at a level below the gains made in 2022. A number of signs nevertheless point to a slow deterioration of the economic climate, particularly the number of people registered as unemployed, and an increase in layoffs.

The Forestry Intervention Project was created in 2023 to fulfil the objective of increasing the areas suitable for cork production. It involved planting approximately 380 hectares under a densification regime while preserving the ecological characteristics of the species and the ecosystem of Herdade de Rio Frio.

2. OPERATING ACTIVITIES BY BUSINESS UNIT (BU)

The companies that make up the Corticeira Amorim universe are structured into Business Units (BUs). This report sets out their most important activities and developments in 2023.

2.1 AMORIM FLORESTAL

The EBITDA of Amorim Forestal totalled €23.2 million in 2023, up 7% over the previous year. Sales increased by €29.6 million, mainly due to growth in the areas of preparation and granulates.

The gross margin fell from 29% in 2022 to 24% in 2023, the reduction being mainly in the area of preparation, with less margin in batches worked, and in granulates, due to either a higher average consumption price or lower yields. The area of Falcas (cork from tree pruning) was also negatively impacted by adverse purchasing conditions in the first half of year, with significant increases in raw material prices.

Supplies and external services evolved favourably. The €3.3 million decrease in 2023 represented a decline that was 15.8% above the drop in activity, mainly resulting from:

• Lower cost of electricity (-€3.2 million) due to price reductions (-€2.7 million) and the positive impact from the use of photovoltaic panels. Significant investments in those panels continued to be made throughout the year, which will have a positive impact in 2024;
• Lower transport costs (-€0.3 million), leveraged on the price reduction effect and the lower weight of purchasing in geographic areas with higher transport costs.

In regard to personnel costs, the €0.4 million increase (8.6% of sales in 2022 versus 7.7% in 2023) is due to planned salary increases and the extension of benefits to employees, specifically the expansion of variable performance-related remuneration. The average workforce fell, particularly in the Discs area, adjusting to the supply chain needs of Corticeira Amorim.

Another highlight for the 2023 results was the €0.6 million contribution following AICEP's favourable opinion on the InovCork productive innovation project, aimed at increasing the production capacity of Amorim Florestal through investment in advanced technology and equipment to increase raw material productivity and profitability.

In terms of operations, Amorim Florestal maintained its ability to continuously supply Corticeira Amorim's value chain in a context of higher raw material prices, ensuring not only the delivery of cork for natural stoppers, but also the supply of discs, granulate and cork for grinding. Increased capacity in the Discs and Granulates areas and consolidated operational efficiency projects in the Preparation and Discs areas were fundamental for achieving this goal.

In regard to product quality, 2023 was another good year for results in the sensory area, due to the consolidation of projects carried out in previous years, especially in the Discs area.

The 2023 reproduction cork purchasing campaign was characterised by a higher concentration of purchases in the first quarter of the year, with nearly 80% of the total transacted by the end of March; this will have supported an increase of the average purchase price of around 18%.

Quantitative goals were reached with the amount purchased higher than the target initially set, thereby ensuring that operations could continue in 2024, with a substantive strategic position ready for upcoming campaigns.

As in 2022, cork purchases in North Africa in 2023 were below expectations and it was not possible to assure a consistent recovery of adjudications in the post-COVID-19 period. This contributed to a decline in the normal activity level of those units.

The strategy and investment for the technological evolution of cork extraction and transport processes continued in 2023, especially regarding extraction machines, with notable progress in their technological development and the amount of equipment placed on the market. A new cork loading and transport model was also successfully introduced and consolidated. The model uses a gripper that enables bulk transport of some types of cork.

Implementation of the Forestry Intervention Project continued, one of Corticeira Amorim's strategic pillar.

In forest management, the consolidation of the Herdade de Rio Frio estate continued, it being a vital investment for carrying out the strategy to introduce a new silviculture model for cork oaks. To meet the goal of increasing the areas suitable for cork production using assisted irrigation, the project to be implemented at this estate was consolidated in 2023 with the dense planting of 380 hectares, maintaining the ecological characteristics of the species and the ecosystem of the Rio Frio.

Production and profitability growth using this silviculture model will be achieved by means of higher rates of planting success and viability, supported during critical periods by installing drip irrigation. At the same time, the introduction of this system will result in a faster economic return, as it should bring forward the first cork extraction, while still respecting the limits stipulated by law for de-barking and without damaging the tree. The next extraction cycles will respect the limits set by current legislation.

In terms of cork oak improvement, definitive steps were taken in 2023, specifically to identify the genetic markers of the defining characteristics of plus cork oaks. This made it possible to internalise the production process at plant scale and thus prepare the plantings to be made in 2024.

Values in million euros.

2.2 AMORIM CORK

The year 2023 was marked by instability and uncertainty. Following the COVID-19 pandemic markets were expected to return towards stability and growth and the global economy to strengthen. But the year again proved atypical, marked by factors countering that outlook, including the ongoing war in Ukraine, the conflict in Palestine, higher interest rates and inflation, as well as logistics chain disruptions. These factors impacted standards of living and consequently consumption.

Wine production in 2023 was among the lowest in recent years with a drop in production in the southern hemisphere and in major European countries being a decisive factor. Extreme weather conditions, including frost, heavy rain and drought, significantly affected viticulture worldwide. Similar conditions are becoming the new normality, with a consequent need to adapt to this new conditioner.

Wine production in the southern hemisphere totalled 45 mhl in 2023, down 19% on the previous year, with production dropping in all countries in line with the downward trend in evidence since the record production year of 2021.

Wine production also fell in Europe, especially in the major producing countries - France, Italy and Spain. Portugal, however, countered the trend, producing 7.4 mhl.

A highlight among other wine producing countries was the performance of the USA, which produced 25.2 mhl, up 12% on 2022.

Final wine consumption figures for 2023 are not yet available, although a significant decline is expected, as occurred in 2022.

Balance is therefore being achieved in the global wine market by means of falling production, large wine inventories and lower consumption.

Despite increased tourism and a more dynamic economy, wine consumption fell in 2023, as shown by the decline in bottling by the main wine producers. Consumers worldwide have been adjusting their consumption habits, gradually opting to drink less wine, but of higher quality. This change is also due to families managing their budgets more prudently, as well as the way they balance income and expenditure.

As a result of these trends, 2023 proved a difficult year for the closures industry (both for cork stoppers and those made from alternative materials) with sales falling. This evolution is also a bullwhip effect, with the logistics chains suffering the impact of excess inventories from previous years. Together with shorter transit times in international transactions, this also contributed to the drop in volumes transacted during the year.

In 2023, sales by Amorim Cork increased 0.7% to €759.4 million. This growth reflects the higher sale prices implemented during the year and an improved sales mix, which together more than compensated for the 9% drop in volume sales. The main aim of the price increases was to cover the higher cost of cork raw materials, whether due to higher purchase prices in the 2022 campaign or to prices in the secondary cork market (stoppers, discs or waste).

The gross margin rose from 46% to 47.3% (an increase of €12 million), a result of savings in non-cork raw material prices (e.g. chemicals) and transport costs, as well as improved industrial yields due to operational efficiency measures, reflected mainly in grinding yields and industrial indicators.

Operating costs were a significant €9.5 million lower, benefiting from notable savings in energy costs, despite increases in other expenses, including personnel costs (+4.9%) as well as maintenance and repair.

The BU's performance evolved favourably, with EBITDA totalling €147.7 million (19.5% as a percentage of sales). Amorim Cork achieved a record performance in 2023 (in terms of sales and results) that was particularly notable considering the global economic situation and the specific environment of the stopper market as described above.

Values in million euros.

Still Wines Segment

This segment was among those most affected by lower consumption and changes in consumer profiles, especially with regard to higher demand for white wines.

Such factors impact the mix of stopper sales, causing drops in volume sales of natural stoppers and their replacement by micro stoppers.

Some inefficiencies were registered early in the year, resulting from the delayed launch of grinding at Socori and the industrial reorganisation carried out in Portugal for operations involving the marking, treatment and packaging of micro and natural stoppers. Both situations were overcome during the first half of the year, enabling the industrial units to close the year with a more robust organisation ready to respond to market demands.

There had been a break in the internal supply chain for some stopper types since 2022, mainly due to the impact of a short purchasing campaign for reproduction cork in that year. This led to an imbalance between Amorim Cork's production capacity and market demand. This imbalance was overcome in the second half of the year by creating the conditions necessary for earlier stock replenishments in the supply chain, thereby ensuring that market demand could be met more smoothly.

This segment has also been characterised by technological evolution through the successful introduction of new technologies such as Naturity, which revolutionised natural stoppers, and NDtech, Xpür and QORK, which have supported sales growth, in contrast to the downward trend for other stopper types.

The Xpür stopper has been received positively in the market. It is differentiated by being a modern stopper with a strong performance that uses supercritical CO2 technology. The prospects are highly favourable and in 2023 Amorim Cork installed two new granulate production units, significantly increasing Xpür and QORK stoppers production capacity.

Affiliate companies also play an important role in the still wines segment. In 2023, Vinolok was significantly impacted by reduced demand, with sales down 30%. This glass stopper segment was impacted by the worldwide decline in wine consumption, especially by a contraction in rosé wine consumption, besides continuing to have usage limitations (not all glass bottles can use this kind of closure). Corchos de Argentina continued to be strongly affected by the country's political situation. In response, managing its debt and foreign exchange exposure were made priorities. This was successfully accomplished in 2023, which delivered improved results compared with 2022.

Another highlight of 2023 was the acquisition of 55% of the VMD Group, which owns the companies Chaillot Bouchons, Suboeno and PM Oenologie. These are reference brands in the Swiss market, not only for stopper marketing but also for the sale of oenological products and the provision of services and consultancy in the viticulture sector. In addition, these companies also have a privileged relationship with a solid customer base, enabling Amorim Cork to strengthen its presence in Switzerland.

Sparkling Wine Segment

This segment was also affected by reduced demand, with sales volume falling by 7%, although sales increased 4% in value.

Noteworthy amid the overall lower quantities sold was a drop in sales of two-disc stoppers, which continued to follow the downward trend of recent years, that was partially offset by an increase in sales of micro and one-disc stoppers.

This is the segment most impacted by the bullwhip effect, particularly regarding the sale of wirehoods. After record sales in 2022, sales fell sharply in 2023, forcing the industrial units that make wirehoods to adjust their production.

Because they have an agglomerate body, stoppers for sparkling wines have been one of the segments most affected by the higher price of waste materials and granules. Even though the segment proved to be highly resilient and increased sales prices, higher cork costs and a poorer sales mix have significantly conditioned the segment's profitability.

Spirits Segment

This segment maintained its growth trajectory. The plan to boost capacity was finalised in 2023, with investments made in the Amorim Top Series and the completion of two new production units: Biocape Madeiras, for wood transformation, and Elfverson Portugal, for the production of wooden capsules. These investments will ensure the growth of the segment without compromising service levels and the validation of the strategy for increasing sales of stoppers with wooden capsules, thereby increasing production capacity and significantly reducing the need to purchase capsules.

A new approach to the market was also adopted in 2023 through the creation of a new commercial structure that is more customer facing and by developing additional markets. The planning department also set out a new approach focused on the premium product segment as well as on adopting a more proactive stance and enhancing its ability to respond to customer orders.

Offering more sustainable products remains a priority, including an increase in the proportion of wooden to plastic capsules, thereby making it possible to benefit more from the new industrial units that opened in 2023.

Stocks recovered to more suitable levels in 2023, taking current business activity into account.

Despite the uncertain business climate and the lower volume of stopper sales, Amorim Cork recorded a positive financial performance in 2023.

It was also a year for replenishing stocks, both of stoppers and raw material cork, ensuring that Amorim Cork can meet market requirements without affecting service levels.

More than €100 million have been invested over the past two year, endowing the BU with a production capacity capable of meeting its customer needs and the technology to ensure the supply of quality products.

2.3 AMORIM CORK FLOORING

The year 2023 was marked by a significant contraction of the European construction sector, with declines of around 30%. After the pandemic years, when building projects were cancelled or postponed, higher interest rates in 2023 directly impacted new construction and renovation, which are the main applicable segments in the flooring industry. Its supply chains continued to have overvalued stocks, contrasting with lower prices, namely for competing products imported from Asia which benefit from installed overcapacity. Unlike the downward trend in most European countries, the Nordic cluster, particularly Denmark, showed great resilience amid this unfavourable situation, maintaining market dynamism and consumption levels.

In this adverse context affecting the flooring industry, Amorim Cork Flooring's total sales fell by 30% in 2023. Sales of natural cork products (GREEN) performed slightly better, down 24%, below the general panorama, which validates and reinforces the company's strategy. Activity benefited from the reduction of more significant cost factors, especially energy, reflecting not only lower prices but also the investment in photovoltaic panels, which highlights the importance of sustainability in that strategy.

In 2023 the BU's activity continued to further its aim, based on the GREEN products concept, plastic-free and the use of advanced digital printing techniques, to position those products in premium market segments. It was a transition year, with major changes in the product portfolio reflecting implementation of the Go4Green innovation programme based on a new approach to the digital printing concept and a differentiated positioning strategy regarding sustainability, which has earned recognition in the flooring industry. This changed product

portfolio enabled a significant reduction in capital invested in stocks due to the phasing-out of PVC/LVT ranges imported from Asia.

New digital printing technology and finishes were successfully implemented, importing an investment of €8 million which enabled the consolidation of a collection of different visuals – an effective advantage when communicating sustainability arguments. The solutions are available with EIR (embossed in register) textured digital printing technology, a process that intensifies the visual's texture and depth, presenting levels of optic and tactile sensations close to the natural realism of wood and stone.

Amorim Cork Flooring added HydroNatural and BioNatural to its portfolio. The former stands out for its higher density and the strengthening of its core cork layer with natural minerals. The latter is a water-resistant floating cork floor produced using 100% plant-based renewable materials. BioNatural is the result of four years of research and development. Its recyclable content is based on natural materials such as cork, sugar cane waste, soybean oil and wood fibre residue.

In marketing, 2023 witnessed the merger of the WICANDERS and Amorim WISE brands, giving rise to WICANDERS WISE, with reinforced promotion of cork in the resistance, design, comfort and sensations components. The new brand enhances and consolidates the historic value of the WICANDERS brand, with sustainability transmitted by the Amorim WISE product range.

In 2023 Amorim Cork Flooring recorded a negative EBITDA of €7.9 million, reflecting the global retraction in the flooring industry and the phase of transition and change affecting the product portfolio.

Values in million euros.

2.4 AMORIM CORK COMPOSITES

In financial year 2023 the EBITDA of Amorim Cork Composites totalled €25.1 million, up 15.8% year-on-year. The EBITDA-sales ratio was 21.0% (17.4% in 2022).

Sales totalled €119.8 million, down 3.8% from 2022. In contrast to the previous year, the effect of higher sale prices implemented due to the impact of higher cork acquisition costs did not fully compensate for the lower quantities sold. Foreign exchange developments were also adverse compared with the previous year - excluding the negative foreign exchange effect, sales would have declined by 3.1%.

The gross margin was affected by the lower level of activity and remained stable as a percentage of sales. Operating costs (excluding amortisations) declined by about €5 million, mainly due to lower consumption and electricity prices, and to lower net transport costs (quantity and price).

Once again under a great deal of pressure from the price side of inputs, namely cork, it proved very challenging to maintain profitability levels. The repositioning of sale prices was a decisive factor in the results obtained, although it did slightly diminish competitiveness in some segments.

This lower level of competitiveness along with the less favourable economic climate hurt the overall growth objectives of Amorim Cork Composites, due not just to losses suffered in the more traditional business but also regarding some more important strategies in segments such as Flooring, and Home, Office and Leisure Goods.

Other business areas such as the Sports, Corkeen and Power Industry segments saw substantial growth. Overall, the most strategic business component with the most allocated resources, as it is the most interesting from the economic standpoint and the one most aligned with the core competences of the BU, grew 11.4% during the period under review.

The value guideline, very much grounded on the internal capacity to innovate and launch new products and new value propositions, differentiated with new materials and new technologies, also obtained encouraging results. Despite the adverse global and sectorial context, these results were much better than those of 2022, although still relatively modest compared with the identified potential.

Regarding efficiency, resources were adjusted fairly quickly to meet demand at all times. Advantage was also taken of the more favourable context in terms of electricity and international transport costs.

Invested capital rose again, mainly due to continued investment in fixed assets, basically with a view to acquiring new production capacities able to generate new added-value business.

The initiatives to strengthen the skills and knowledge base regarding clients' activity sectors and the internal processes still merited full attention, with a set of programmes addressing the different teams and people, as well as digital transformation.

The distribution companies of this BU were also streamlined, with the closing of structures in the UK and France and the consequent transfer of business to Portugal. The AMOSEALTEX joint venture set up in China to develop the local market was also liquidated in 2023, giving way to a new commercial approach in a still-to-be-explored market with a great deal of potential.

The BU sold products in more than 80 countries, where performance naturally varied in both direction and magnitude. Among the most important geographic markets, only Portugal recorded a drop in sales, while the US and Germany presented slight growth. The sales growth in markets of Northern and Central Europe such as the Netherlands, Sweden and Poland stands out compared to some significant losses in countries such as Belgium, Japan and France.

With sales for 31 market segments grouped by sectors, commercial performance varied:

• The Flooring (Components and Accessories) sector maintained the downward trend of recent years and in 2023 was no longer the largest sector in the turnover of Amorim Cork Composites. After a sales drop of 15% compared with the previous year, it now accounts for approximately 25% of the BU's sales. The main reason for the decline was once again the performance of the Distributors of Flooring & Related Products segment, with turnover down 22% and extensive losses in the BU's main geographic markets, except the UK.
• The Industry sector, whose sales also account for 25% (23% in 2022), assumed first place in the turnover hierarchy. Sales were up 6%; the main contributors were the segments of Footwear, with growth of 17% that recovered the losses of 2022, and Aerospace, which again posted substantial growth (+21%), with the USA market particularly standing out – it now accounts for 85% of the business in this segment.
• The third-ranked sector in Amorim Cork Composites' turnover was Sealing, which despite a 9% decline still accounted for 18% of the BU's sales. The Multi-Purpose Seals & Gaskets segment was mainly responsible for this result, suffering a major drop in sales (-27%), as was the Automotive & Auto Parts segment, whose sales also fell in 2023. Strategic segments such as Power Industry and Gas Equipment saw sales increase, mitigating the overall loss.
• After growth of 36% in the previous year, sales in the Construction sector fell 11% in 2023, basically due to the performance of the Heavy Construction segment in Central Europe, with sales down 29%. This sector now accounts for 10% of the turnover of Amorim Cork Composites.
• Finally, the Sports sector for the first time ranked among the five biggest for Amorim Cork Composites, after substantial turnover growth of 34%; its sales now account for 7% of the BU's total.

The remaining sectors accounted for 15% of sales (13% in 2022), altogether achieving sales growth of 3%. Corkeen stood out with notable sales growth of 76%, while Korko saw sales drop compared with the previous year.

Values in million euros.

2.5 AMORIM CORK INSULATION

In the 2023 financial year, sales by Amorim Cork Insulation totalled €18.2 million, up 14.2% year-on-year despite lower volumes. Excluding sales to other Corticeira Amorim BUs, growth was 13.6%. EBITDA was hard hit by the rising cost of cork consumption price.

In terms of the efficiency of the BU's industrial operations, the major investment in the Vendas Novas and Silves industrial units was completed, the aim being to upgrade old factory equipment and boost performance. Photovoltaic panels were also installed at the Vendas Novas industrial unit.

Amorim Cork Insulation continued developing activities aimed at highlighting expanded cork agglomerate solutions, namely:

• Participation as co-promoter in the PRR "R2UTechnologies" Innovation Pact for the development and industrialisation of a disruptive new modular construction concept able to meet growing market needs and new challenges in the sector, particularly in terms of sustainability and environmental protection;
• Collaboration with a sustainable construction training school (Luxembourg);
• Participation in Klimahouse 2023 (Italy), one of the leading international fairs on sustainable construction;
• Promotional action in the United Arab Emirates, which included the participation of eight companies from the Middle East (United Arab Emirates, Saudi Arabia and Kuwait).

Values in million euros.

3. FORESTRY INTERVENTION PROJECT

rapid growth and cork quality. They will enable the identification, selection and production of cork oaks adapted to different conditions, maximising their productivity and resilience. Plans call for the first experimental plantations to begin in 2024 using cork oak+ trees resulting from phenotypic and genetic selection.

In the past few decades the vitality of cork oaks (Quercus suber) has declined due to poor management practices, harmful biotic agents and climate change, among other factors. This makes it crucial to ensure the preservation of cork oaks and the montado agroforestry ecosystem if we are to continue benefiting from the cork produced and many other valuable ecosystem services for populations around the Mediterranean Basin.

To mitigate the imbalance between cork supply and demand and respond to growing concern about the lower productivity of existing stands, Corticeira Amorim created the Forestry Intervention Project in 2013 to foster the preservation and sustainable development of cork oak forests.

Amorim Florestal continued to develop the PIF in 2023, focusing on three key areas: forest management, applied forestry R&D and basic forestry R&D.

The work so far has aimed to gather and compile existing knowledge with a view to sharing it with other forestry producers, which can be done by producing support and assistance documentation and through training activities on the management of cork oak stands (either new plantations or existing montado areas) and other topics such as pest treatments, fertilisation and pruning.

To demonstrate that forest management can still be improved, Corticeira Amorim has invested in the acquisition of suitable land and now has nearly 8,000ha at its disposal to test new silviculture models.

Corticeira Amorim aims to become a centre of excellence for research on cork oaks and to conduct applied research into the respective impacts of irrigation on installation, fertilisation, nutrition and soil. It is also involved in partnerships that have implemented several cork oak installations. New deep and surface irrigation methods are being studied, along with the effect and effectiveness of fertilisers (in different amounts) on cork oak growth. The productivity and the economic and technical viability and valorisation of cork oak stands irrigated at installation are also being assessed. These efforts will in the future help determine the best procedure to follow when installing cork oaks using this forestry model.

Finally, it is necessary for new plantations to benefit from better cork oaks that have adapted to emerging climate challenges and ensure higher productivity and survival rates. In this regard, cork oak improvement procedures are being developed. To establish a multiplication and improvement programme, examples of cork oak+ trees from different origins and edapho-climatic conditions have been selected based on phenotype. Molecular markers are meanwhile being identified, associated to phenotypic characteristics of interest such as

4. INNOVATION, RESEARCH AND PRODUCT DEVELOPMENT

The genesis of Corticeira Amorim was deeply linked to the cork industry, its core business, standing out currently as the leader of the cork sector at a global level, supplying a broad range of products designed for diverse sectors of activity.

The growth trajectory and economic expansion of Corticeira Amorim, derives especially from the its proactive business strategy targeting continuous investment in Research and Development and Innovation (R&D+I). Each Corticeira Amorim Business Unit has developed its own respective R&D practices over the course of time, but always in parallel with the competences built up by Amorim Cork Research. e, but always in parallel with the R&D competences built up by Amorim Cork Research.

4.1 AMORIM FLORESTAL

In 2023 Amorim Florestal continued to focus on innovation and development of new and more efficient technologies with a direct impact on improving processes ranging from forestry to the final choice of cork discs.

To improve the artisanal cork extraction process, the development of a new extraction machine began in 2021. The first prototypes were used in the 2022 and 2023 cork harvests, with various locations and teams involved, to test and validate the equipment under a wide range of working conditions. The results were extremely positive and the equipment well accepted, thus enabling the introduction of state-of-the-art technology in a manual and traditional process. This equipment will continue to be improved in 2024, correcting a few minor faults with aim of ensuring that the equipment is stronger, lighter and more reliable.

With respect to innovation focused on industrial processes, efforts to seek and implement new technologies for the processes used to make and select cork discs continued. The pre-selection phase was integrated in the lamination process in disc manufacturing, giving rise to a system that consolidates operations, with the respectively associated gains. Additionally, the use of artificial vision technologies developed only using internal resources will enable improvement of the final product's quality and profitability.

A technology that can weigh discs individually was developed and implemented using smart algorithms that correlate the discs' real weight with the density read in X-ray sorting systems. This technology meets a very specific need of some clients, offering a high level of service. Also developed were new technologies for sorting and segregating critical defects in cork discs (e.g. encrustation year, C. undatus beetles and ants) using innovative hardware (polyview lens), thus improving performance in terms of segregation, cadence, repeatability and reliability.

Amorim Florestal is also committed to continuing on the path of digital transformation, seeking out and testing new and diverse technologies that can resolve situations not yet targeted for intervention due to technological limitations. In grinding, a continuous granulate weighing system has been implemented, which not only enhances product quality control, but also ensures faster intervention and more effective equipment adjustment. A mobile application was also successfully developed to measure the thickness of cork planks after boiling and bucking, enabling more efficient and comprehensive visual assessment of quality. These projects, based on artificial intelligence and deep learning, constitute a true technological revolution in the cork sector.

4.2 AMORIM CORK

Equipment from Amorim Cork research projects that showed good results was mass-produced in 2023, namely: packaging equipment that reduces volume by more than 35%, with substantial gains in terms of transport cost and lower CO2 emissions; equipment used to inspect stopper interiors using artificial intelligence and deep learning; marking equipment that employs the new UV-LED technology; and equipment to sort marked stoppers that enables the selection of different marks and stopper mixes.

In collaboration with several universities, the processes of stopper washing and filling have been significantly streamlined to make them more productive and sustainable, giving rise to better quality products.

After being validated and presented to the market, the new 'bio' surface treatment for natural stoppers posted its first sales. Parallel to the supply of those treatments, Amorim Cork's distribution units were furnished with the equipment needed to conduct oxygen audits of bottling lines, an aspect which often complements good stopper performance.

The innovative project for humidification of natural stoppers, aimed at enhancing their physical/mechanical properties, is nearing completion. Its introduction in the production process is expected in the first quarter of 2024.

Special attention has been also paid to wine/stopper interaction. Preliminary results of comparisons between wines sealed with different closures showed that there is an important area of knowledge to explore, which Amorim Cork will use to optimise the value proposal for different wine typologies, based on solid technical data. Several studies were conducted to ascertain why wines age differently when different closures are used. The interesting results of these studies were published in 2023 in specialty journals. Other articles are currently awaiting acceptance by various journals and should be published in 2024. The behaviour of cork over time, especially in wines aged many years in the bottle, was studied by Amorim Cork in collaboration with the scientific community and in 2023 a doctorate focusing on this issue was launched.

In regard to technical stoppers for still wines, granulate/glue formulations have been perfected. Alternatives have also been sought for existing agglomerate glues.

In the area of stoppers for sparkling wines, the main research conducted in 2023 sought to discover the reasons for the better adaptation of different stopper types to different wine typologies. Several projects made significant progress, namely: the chemical and sensory characterisation of wines in bottling trials with

different bottle times, using expédition and tirage stoppers; taste characterisation of wines sealed with different stopper types; oxygen transmission determination; aesthetic improvement of certain typologies and studies into the stopper absorption of wine aromas. Projects are also under way with a view to producing stoppers designed more specifically for the characteristics of each sparkling wine type, including attempts at improvements in all stopper aspects that might interact with those wines' characteristics.

In the area of spirits, a new anti-counterfeit capsulated stopper was developed, patented and presented to the market. It includes an advanced tamper-evidence system as well as the possibility of integrating near-field communication technology. The environmental sustainability of products continued to be an area of intervention, with the development of an exclusive tool to measure the carbon footprint of all products. Capsule solutions using less material and no glue were also created and promotion of the circular economy was strengthened by using and including certain products in new capsule types. Finally, studies focusing on how drinks with high alcohol content affect the agglomerate glues used in technical stoppers deserve highlighting, work undertaken in collaboration with the scientific community that led to clarification of the physical/ mechanical performance of different glues and their integration with cork granules.

4.3 AMORIM CORK FLOORING

In 2023 Amorim Cork Flooring continued with its medium-tolong-term strategy plan for the development of sustainable flooring with positive environmental impact, focusing on the use of cork as a natural, biodegradable, renewable and recyclable raw material. Although the targets set are challenging, this BU will celebrate a historic milestone in 2024 by presenting a product portfolio that is 100% PVC-free.

Within the family of WISE Inspire products launched in 2022, Amorim Cork Flooring renewed in 2023 the digital printing proposition/solution, ensuring more dimensional product stability to thereby support large humidity and temperature gradients, endowing it with more stability and durability in extreme climate conditions. The solution's stability was achieved by reinforcing the cork core layer and adding an impermeable layer between it and the decorative/visual element.

During the year, Amorim Cork Flooring also added Hydro Natural to its portfolio of rigid cork core layers. This product stands out for its higher density (cork core layer strengthened with natural minerals) and is available with digital printing directly on the cork core layer. The printing process required the development of a special preparation for the surface to be printed on, reinforcing adhesion between the cork core layer and the printing inks, thus avoiding potential delamination between layers.

All the solutions are available with the technological solution of EIR (embossed in register) textured digital printing, a process that intensifies the floor's texture, depth and appearance; it is able to recreate the appearance of real wood grains.

EIR digital printing technology was also used to create a collection of stone visuals for various technical solutions, from the HDF core to the Hydro Natural and Bionatural cores. In the collection of stones, like with the woods, the EIR process intensifies the visual's texture and depth, presenting unprecedented levels of highly

realistic optic and tactile sensations, so close to nature that users find it hard to distinguish them from the original materials.

After the 2023 launch of the Burel collection, which combines two unique and sustainable materials, cork and coloured waste wool from Portugal's Serra da Estrela mountains, new wall covering solutions will be developed using digital printing technology. These new solutions will enable unlimited design possibilities and total customisation, with the additional challenge of increasing the respective fire resistance.

Finally, Amorim Cork Flooring aims to continue contributing to the green transition, focusing innovation on the development of standards/visuals and on sustainable practices, with processes geared toward waste reduction and economy of resources.

Amorim Cork Flooring was distinguished at DOMOTEX in 2023 with the award of the Green Collection Prize to the productAmorim Wise Cork Inspire 700HRT.

4.4 AMORIM CORK COMPOSITES

In 2023, the activity of Amorim Cork Composites focused in particular on the development of:

• New composite materials based on circular materials, particularly for flooring base applications;
• New cork composite processing technologies using hot lamination, extrusion, injection and moulding;
• New applications, with highlights including new thermoforming solutions for thermal protection systems in the aerospace area and fire insulation materials for applications in electric vehicle batteries.

The first two intervention areas enabled the prototyping and development of a set of new composite materials based on the intrinsic qualities of cork, associating it to other natural or synthetic materials, either raw or from other industrial subproducts. A highlight was the up-cycling of PET foams from end-of-life wind turbine blades that have no other viable solution besides landfill.

Amorim Cork Composites has boosted its sustainability, namely by expanding circular economy practices and the use of industrial synergies, meeting higher market demand for sustainable materials.

The development of composite materials with cork will enable the discovery of new applications, improve the applicative performance of current materials and respond to the market's growing need to replace plastic. It is therefore a key research axis for the company. Standing out in this strategic cycle are the new extrusion, moulding and continuous lamination technologies, still relatively unexplored in cork, but already scaled for industrial use at the icork factory pilot unit.

The following projects stand out:

1. Mobility:

Components for interiors: the development of flooring components, laminated door trims and injectable materials continued, based on the sustainability and design characteristics of cork;

Structural components: the development of a laminated bio-composite for application in partitions, flooring and train, ship or bus cabin insulation was completed, along with an acoustic insulation composite, particularly effective for reducing vibration in cabins of heavy equipment such as buses and trucks.

• 1. Home, office and leisure goods: three new products were developed and launched for commercial testing at a large decoration and household items retailer. Underpinned by unique designs and new technologies, two more products are in the development pipeline and should be finalised in 2024. The development of a new collection of cork toys produced in collaboration with a sector specialist was completed. This broader product range used new production technologies such as moulding and compression, painting, and combinations with other materials, namely wood.
• 1. Energy: new applications continued to be explored in this segment, a highlight being the development of thermal pads and cell spacers in multilayer configurations, using materials with high fire resistance capacities such as aerogel or mineral fibres, which in combination with cork enable the development of materials that meet the requirements of the manufacturers who are partners in validating such solutions.
• 1. Flooring: projects aimed at expanding the portfolio continued in the area of flooring bases, with development of a new underlay with cork and recycled PET foams from wind turbine blades, and in the area of flooring components, specifically for laminated flooring or LVT, presenting more sustainable alternatives with better acoustic performance. These solutions were developed using a new continuous agglomerate technology, making it possible to diversify the range of usable cork granulates and to produce multilayer materials in one single stage and in their final form, thereby reducing operations and minimising costs. These projects represent a sample of a pipeline with around 25 ongoing projects, across a wide range of applications, thus meeting the UN's mission in terms of valuing cork and expanding the portfolio of materials and applications.
• 1. Marine: the market launch of a new brand, Navicork, the aim being to supply final cork decking, especially for leisure vessels and small and medium-sized cruise ships. To achieve the traditional specifications of teak in terms of durability and stability, continuous agglomeration and graphic deck reading technologies were used to develop the material, with production employing CNC cutting and machining equipment.

The above are samples from a pipeline of nearly 30 ongoing projects with a wide range of applications aimed at achieving Amorim Cork Composite's aim of increasing the value of cork and expanding its portfolio of materials and applications.

Composites based on cork, new technologies and product lifecycle management will continue to be a priority, along with the search for new sustainable and profitable applications.

4.5 AMORIM CORK INSULATION

In 2023, Amorim Cork Insulation continued the development cycles launched in previous years in regard to R&D projects undertaken in consortia. These projects fall within the framework of the cork's development and innovation strategy for creating new value-added applications for cork as a raw material, specifically by seeking to improve the fire classification of the BU's products. In 2023, it was launched the R2U Technologies project in the field of modular construction.

Technological innovation, at all levels of the production chain, is a critical issue for the cork industry, starting from the very outset with the stripping process.

5. APPROACH TO THE ENVIRONMENT

The global environmental situation demands an urgent and ambitious response. Climate change, loss of biodiversity and a scarcity of natural resources are challenges that must be addressed by society and businesses. As part of its Sustainable by Nature programme, Corticeira Amorim has set out the following strategic priorities:

• Montado: preserve the montado (cork oak) habitat and its ecosystem services by increasing knowledge, mobilising resources and proposing measures;
• Climate change: reduce the environmental impact of operations by adopting renewable, accessible and efficient solutions;
• Circular economy: apply the principles of the circular economy by reducing waste, prolonging the lifetime of materials and regenerating natural systems;
• Green products: maintain a proactive role in the development of the already vast field of cork applications based on its innate characteristics.

The programme includes quantitative objectives, performance indicators and control procedures that ensure, with comparable levels of rigour and integrity, that these priorities and the progress made in these areas are included in the Sustainability Report. In 2023, Corticeira Amorim achieved significant progress in several areas, among which the following stand out:

5.1 MONTADO

Corticeira Amorim aims to preserve and sustainably develop cork oak forests through its Forest Intervention Project.

As detailed in Chapter 3 of this report, this project, which is of great importance to the Company, focuses on three pillars: induction, intervention and research. In the area of induction, knowledge and technical support are shared with forest producers, promoting sustainable forest management; in the area of intervention, innovative methods of cork oak cultivation are studied and techniques are tested in the field, through improvement initiatives, plantations, and other actions to promote the sustainable management of cork oak forests. In terms of research, the aim is to develop cork oak species that are more resilient to climate change, pests and diseases.

The Company owns three forest properties: Herdade da Baliza, Herdade de Rio Frio and Herdade da Venda Nova. In 2023, the total area under management reached a cumulative total of 1,605 hectares. This ambitious project produces several benefits, from improving the resilience of the forest and increasing cork production to promoting biodiversity and carbon retention. The aim for the future is to continue investing in research and development, expand the intervention areas and enhance knowledge sharing with forest producers. The goal is to intervene in 3,000 hectares of forest by 2024.

5.2 CLIMATE CHANGE

Corticeira Amorim is committed to the combat against climate change and has implemented various measures to reduce its environmental footprint.

A total of 76 energy efficiency measures were implemented as part of its energy efficiency project, including improvements to boiler efficiency, while 15.41MWp were installed as part of the photovoltaic project. The 37th Energy Efficiency Forum also took place in 2023, with the participation of energy managers from different UN organisations, with the aim of achieving the goals of the Sustainable by Nature programme, as well as maintaining the use and necessary adaptation of technology to increase productivity and quality.

In 2023, the company achieved the goals it had set out as well as a positive performance in terms of energy efficiency, renewable energy and emission reduction.

Energy efficiency:

• Energy consumption reduced by about 9% compared with 2022;
• Energy efficiency rate increased to 4.3% (2022: 2.8%);

Renewable energy:

• Percentage of controlled renewable energy increased to 68.3% (2022: 67.6%);
• Increase of 9% in the total consumption of controlled electrical energy (2022: 3.2%);

GHG emissions scope 1 and 2

• Reduction of CO2eq emissions (scope 1 + 2) by about 9% compared with 2022.

5.3 CIRCULAR ECONOMY

Corticeira Amorim achieved the goals it set itself in 2023 regarding the use of materials, reducing the consumption of non-renewable virgin materials and increasing the use of renewable alternatives.

This resulted in a decrease of 32.5% in the weight of virgin nonrenewable materials, which now represent only 7.8% of total materials consumed (2022: 11.5%). This result reflects an increase in the consumption of virgin renewable materials, which reached 88.7% in 2023 (2022: 82.3%).

Plastic consumption was reduced by 40%, both at Amorim Cork Flooring and Amorim Cork. In this context, the termination of PVC use across the entire Wicanders Wise brand product range merits highlighting, as does the robotisation of the packaging process, thereby maximising the number of corks packaged per transport unit.

Global waste production was also reduced by 20.5% as a result of greater efficiency in the use of materials. The consequent reduction in the generation of valuable waste led to a slight decrease in the waste recovery rate, which fell from 88.8% in 2022 to 87.2% in 2023, but the targets set for 2023 were still achieved.

5.4 GREEN PRODUCTS

Corticeira Amorim's commitment to combating climate change is also evident in its production of innovative products and solutions based on cork. The company believes that its manufacture of insulation products and cork stoppers has a positive impact in mitigating climate change. Thermal, acoustic and antivibration insulation products provide comfort and reduce energy consumption, while cork stoppers provide a low-energy option that extends the life of products, reduces waste and contributes to climate control. Together, these products accounted for 62.2% of the company's consolidated sales in 2023 (2022: 66.8%).

By means of comprehensive studies of different phases of product life cycles, including forestry activities, cork preparation, forest transport, production, finishing and packaging, the company provides its customers with quantifiable information on the carbon footprint of its products. In 2023, these studies covered 63.9% of the company's sales (2022: 52.6%), enabling approximately 30,000 domestic and international customers to make more informed decisions, thereby contributing to reducing their own carbon footprints.

6. HUMAN CAPITAL MANAGEMENT

The year 2023 underlined how everything has changed in regard to managing people, affected as human resources management has been in recent years by a wide range of demographic, social, political and economic developments. The changes taking place in different areas require flexible policies and highly diverse practices covering a range of employee segments and differently evolving objectives that often involve a great deal of unpredictability.

Attraction and retention, diversity and inclusion, culture and identity, commitment and connection, professional development, well-being and the future are all keywords in the social component of the Sustainable by Nature Programme and they all proved significant in 2023.

At the end of 2023, Corticeira Amorim employed 4,958 people, mainly in Portugal, where 3,466 people worked (69.9% of the total), followed by Spain with 327 (6.6%), France with 189 (3.8%), and the US with 149 (3%). The remaining 827 employees were distributed across more than 10 countries in five continents. The overall headcount remained relatively stable as a result of a slight decrease in industrial activity in the second half of the year. At the end of 2023, 81% of workers had permanent employment contracts, while 8% had fixed-term contracts. Temporary workers represented 11% of Corticeira Amorim's workforce.

6.1 ATTRACTION AND RETENTION

Corticeira Amorim's workforce turnover also remained stable compared with 2022, although it was higher than the levels recorded in previous years. Greater employment mobility and an increased scarcity of human resources in the labour market has impacted recruitment. The highest turnover rate was for the under-30 age group. Efforts to counteract the normal ageing of the workforce have nevertheless proved successful, stabilising at an average age of 42 years for the third consecutive year. Rejuvenating the workforce remains a goal and is the target of a range of Corticeira Amorim's people management practices.

Another trend that merits highlighting is that the number of vacancies filled through internal competitions increased significantly, resulting in greater job mobility.

The Group's annual Employer Branding programme, used regularly in its recruitment initiatives at Portugal's leading higher education institutions (public and private), is part of a more global plan for rejuvenating and improving the qualifications of its workforce in support of the company's goal of training recent graduates and providing them with an internal career path over the short and medium term. This ambition was highlighted when Corticeira Amorim was ranked among the "20 Best Companies to Work For" in an employer branding survey covering the largest 150 employers in Portugal.

OnCORK, an onboarding programme for all Corticeira Amorim personnel, was also created in 2023 with the aim of immersing new employees in the business and culture of the company and providing them with an integrated perspective of Corticeira Amorim in all its

scale and different dimensions. The programme, which runs for a week and is held twice annually, helps newly hired employees to become aware of the full range of the Company's business by attending workshops on the Group's business, culture, people and the raw materials it uses. The week ends with the Executive Committee responding in a Q&A session. More than 50 staff members participated in the first edition of the programme.

In terms of qualifications, improvement goals were maintained and in 2023 the number of employees with a (European) qualification of level three or above increased.

Indicators for absenteeism, both long and short-term, as well as for leave, evolved in an interesting way, falling overall to 5.9%1 (2022: 6.4%). Illness was the main cause of absenteeism, followed by parental leave and workplace accidents, which have significantly decreased in recent years.

6.2 DIVERSITY AND INCLUSION

The Equality, Diversity and Inclusion Programme aims to achieve a range of objectives, goals, pre-established indicators and overall progress in regard to gender balance, male and female employee development and the promotion of safe environments. In 2023, these aim were expanded to include development in the area of inclusivity. Much remains to be done in this field, but important steps have been taken, including the definition of interventionrecruitment initiatives, enhancing internal awareness and infrastructure assessments. In 2023, internal training was provided in this area and two collaboration protocols were established with institutions linked with the field of inclusion, as well as their taking part in specific recruitment initiatives. In today's challenging context, achieving the commitment and affinity of male and female employees with the Company's culture is a goal to be sought after. Creating healthy, flexible, diverse and inclusive work environments is also a key condition for the attraction, identification and retention of employees and contributes strongly to ensuring the necessary levels of employee involvement and skills, both now and in the future. In this regard, it is essential to ensure fluid and continuous communication, as well as fostering a sense of community and belonging. Corticeira Amorim's Internal Communication Plan covers all these areas, seeking to raise awareness and engage male and female employees with these matters.

6.3 TRAINING AND PROFESSIONAL DEVELOPMENT

Aware of its role as a major employer, Corticeira Amorim signed up to Portugal's "Pact for More and Better Jobs for Young People", an initiative sponsored by the Presidency of the Portuguese Republic. In addition to the commitments included in the pact, which cover the recruitment, development and adequate remuneration of young people, the Group strengthened its support for the "Giving Young People a Voice" component of the programme by launching Young@Cork in 2023, a wide-ranging programme for employees under 30 that involves more than 200 young people. This initiative includes an annual meeting in which issues relevant to this age group are debated (We are ON!) as well as a mentoring program (Follow Me), themed breakfasts with the president of Corticeira Amorim (#askthepresident) and a training programme focused on innovation (Inov Cork).

¹ Sustainability Perimeter

The number of training hours has increased, reaching a record total of approximately 80,000 hours. However, the percentage of employees with access to training has decreased, dropping to 81.7% 2 (2022: 84.9%).

In 2023, Corticeira Amorim extended its management by objectives system to cover all its employees in Portugal. In addition to the management by objectives system that is used by management staff, a system of quarterly objectives was created for operational teams. This sets out mutually aligned goals based on the company's objectives. The aim is to guide staff performance by means of a set of specific goals and to broaden the scope of individual performance evaluation systems by providing twice -yearly or annual individual feedback sessions for all employees.

Specific incentive systems covering the entire workforce were also defined, thereby ensuring a balanced and coherent approach to variable compensation.

6.4 HEALTH AND SAFETY

A new impetus was given to Health and Safety at work in 2023. A cross -company initiative across all BUs was created from the outset with the aim of creating a global alignment programme and strengthening all the initiatives connected with this area. The results achieved in 2023 3 already show a clear improvement compared with the previous year, with a reduction of about 23% in the frequency of accidents registered, which fell from 14.3 in 2022 to 9.4 in 2023.

The foundations were also laid for a structural safety development programmeby carrying out a survey in all companies with a view to determining what stage they had reached in terms the Group's Safety Culture so that, based on this diagnosis, objectives for general and specific developments in this area could be determined for each of them. A Safety Training Programme was also created for all Corticeira Amorim's senior managers, beginning in early 2024. This programme will also form part of a coordinated Security Audits Plan as well as several specific initiatives for each company (Safety Dialogues, Safety Walks and Thematic Weeks).

The theme of health in the workplace was also highlighted in 2023, focusing on improving the ergonomics of a set of workstations and continuing with workplace gymnastics and physiotherapy programmes, which are essential for reducing the incidence of musculoskeletal diseases associated with work. Following an internal communication campaign, the subject of mental health in the workplace was also addressed.

6.5 WELLBEING AND BENEFITS

In 2023, the coverage and capital of the health insurance policies that cover all employees was strengthened. The annual Health and Wellness Week was also held, featuring an information and awareness campaign as well as training relating to healthy lifestyle habits. The week culminated in a solidarity walk (in favour of the Portuguese Alliance for the Promotion of Mental Health at Work).

² Sustainability Perimeter

³ Sustainability Perimeter

Internal information, awareness -raising and training campaign on healthy lifestyle habits, which culminated in a solidarity walk.

7. STOCK MARKET PERFORMANCE

The current value of the Corticeira Amorim share capital stands at €133 million, represented by 133 million ordinary shares with a nominal value of €1, which endow the right to dividends. The Company (then entitled Corticeira Amorim, S.A.) listed its shares on the BVLP – the Lisbon and Oporto Stock Market on April 18, 1988, integrating Portugal's continuous trading system ever since December 11, 1991.

Under the terms and for the purpose of Law no. 15/2017, of May 3, and Decree Law no. 123/2017, of September 25, the Board of Directors of Corticeira Amorim approved the conversion of bearer shares representative of the company's capital (ISIN code: PTCOR0AE0006) into registered shares; the respective conversion at the centralised trading system was completed on October 26, 2017.

At the end of the year under consideration, Corticeira Amorim's share price reached € 9.14, reflecting an increase of 4.8% compared to the closing price of 2022. In 2023, approximately 13.3 million shares were traded on the Euronext Lisbon regulated market, in almost 53,000 transactions, which jointly amounted €126.8 million.

In 2023, the average share price was €9.66 per share; the maximum price was €10.62 per share, registered on May 9 and 10, the minimum price was €8.74 per share registered on January 2; the amplitude between the highest and the lowest share price was 21.5%.

The charts below set out the stock market performance of Corticeira Amorim.

Trading volumes and share prices on the regulated market (2023): Source: Euronext Valor Transações (EUR)

Va lor das Transa ções Cotação do dia (Fecho)

Daily Share Price

Daily Share Price (EUR)

Cotação do Dia (EUR)

Corticeira Amorim´s share price performance versus the PSI index (2023):

Source: Euronext

CO RTICEIR A AMORIM PSI

Corticeira Amorim

PSI 20

Trends in stock market indicators:

Source: Euronext

	2017	2018	2019	2020	2021	2022	2023
Quantity of shares traded	19,290,907	14,884,614	9,481,944	13,353,226	11,448,484	19,946,784	13,258,212
Share price (€):
Maximum	13.300	12.000	11.520	11.780	12.700	11.360	10.620
Average	11.067	10.604	10.062	9.990	11.031	9.864	9.664
Minimum	8.180	8.370	8.710	7.480	9.860	8.500	8.740
End of year	10.300	9.000	11.300	11.600	11.280	8.720	9.140
Trading frequency	100%	100%	100%	100%	100%	100%	100%
Stock market capitalisation at year end (€ million)	1,369.90	1,197.0	1,502.9	1,542.8	1,500.2	1,159.8	1,215.6

KEY ANNOUNCEMENTS MADE BY CORTICEIRA AMORIM IN 2023:

24 January Equality Plan 2023.

23 February Consolidated results for 2022 financial year.

Sales exceed €1 billion for the first time, with the following highlights:

• SACI Group contributes €117 million in sales;
• EBITDA-sales ratio stable at 16.1%, despite negative impact of energy and raw material prices;
• Net profit increases 32% to €98 million;
• Proposal to distribute gross dividend of €0.20 per share.

28 April Sustainable Finance: Allocation and Impact Report 2022.

28 April

Gross dividend of €0.20 per share.

8 May Consolidated results for the first quarter of 2023.

Net profit increases 18%, with the following highlights:

• Sales total €260 million;
• Improved profitability supported by favourable sales mix and costs;
• Gross dividend of €0.20 per share to be paid on May 15.

2 August Consolidated results for the first half of 2023.

Net profit increases 8% to €51 million, with the following highlights:

• Resilient sales total €539 million;
• Sales by the Cork Stoppers BU increase 5.4% to €423 million;
• EBITDA-sales ratio improves to 19.2%, reflecting a favourable evolution of the product mix and energy prices.

30 August

Acquisition of 55% of the share capital of VMD Group SA, based in Pully, Switzerland.

2 November Consolidated results for the third quarter of 2023.

Net profit increases 4% to €67 million, with the following highlights:

• Consolidated sales total €763 million;
• Cork Stopper BU's sales increase (+1.7%)
• despite negative impact from exchange rates; • EBITDA margin improves to 18.3%;
• Proposed distribution of €0.09 per share of distributable reserves to shareholders.

4 December

Gross extraordinary dividend of €0.09 per share.

8. CONSOLIDATED RESULTS

8.1 SUMMARY

In the 2023 fiscal year, Corticeira Amorim recorded a consolidated business turnover of €985.5 million, a decrease of €35.9 million (-3.5%) compared with 2022. It is notable that if the impact of the VMD Group was excluded, sales would have decreased by 4%.

The unfavourable exchange rate effect helps explain the 3.5% decrease in sales compared with the previous year (-2.2% excluding the negative exchange rate effect).

Despite the negative impacts of the increase in cork consumption prices and operational deleveraging, consolidated EBITDA rose to €177.0 million. This growth of 7.9% was mainly due to an improvement in the sales mix and significant savings in terms of operational costs, mainly due to a reduction in electricity and transport prices. The EBITDA margin was 18.0% (12M22: 16.1%).

At the end of December 2023, net interest-bearing debt totalled €241 million (12M22: €129 million), reflecting payment for a 55% stake in the VMD Group (€12 million), increased fixed asset investment (€95 million), working capital requirements (€108 million) and dividend payments (€39 million). These items also contributed to the increase in net debt in 2023.

Non-recurring results (net) included the impact of recognising the capital gain from the disposal of an investment property, the discontinuation of the product line at Amorim Cork Flooring and restructuring costs. The effect of non-recurring items on net income was approximately €0.8 million.

Corticeira Amorim's consolidated net income totalled €88.9 million, a decrease of 9.7% compared with the previous year. Reflecting its positive financial position, Corticeira Amorim distributed dividends totalling €38.6 million, corresponding to €0.29 a share.

8.2 CONSOLIDATION PERIMETER

As previously mentioned, Corticeira Amorim began to fully consolidate the VMD Group from October 2023. As a result, the financial statements for the 2023 fiscal year are not comparable with those of 2022.

8.3 CONSOLIDATED RESULTS

Consolidated sales totalled €985.5 million, down 3.5% compared with 2022, when sales reached €1.021 billion. Excluding the impact of the integration of the VMD Group, the drop in sales was 4%. Despite a more favourable product mix and price increases, a significant reduction in activity levels, notably at Amorim Cork Flooring, and the negative exchange rate effect explain the 3.5% decrease in sales compared with the previous year (-2.2%, excluding the negative impact of currency fluctuations).

Sales by Amorim Florestal rose (+14.5%) compared with 2022, growth being more significant in the first half of the year (+19.1%).

Amorim Cork and Amorim Cork Insulation also recorded sales increases (0.7% and 14.2% respectively). However, sales by Amorim Cork Flooring and Amorim Cork Composites decreased in comparison with the previous year (-30.1% and -3.8% respectively). The relative weight of sales by each Corticeira Amorim business unit remained relatively stable compared with 2022.

In geographical terms, France returned to being Corticeira Amorim's main sales market, after having been overtaken by the US in 2020. Following the integration of the SACI Group in 2022, the relative weight of sales to Italy has also increased. The Company's next biggest markets were Spain, Germany and Portugal.

* Excludes Portugal; includes Switzerland and Norway.

The gross sales margin was 51.5%, an increase of 0.2 percentage points compared with 2022. This increase was mainly due to improvements in the product mix and price increases introduced during the year. The increase in production had a positive of impact of approximately €7.2 million, with Amorim Cork making a more significant contribution.

Operating expenses fell 6.3%. External supplies and services costs decreased 18.9%, reflecting a notable reduction in electricity (62%) and transportation costs (23%).

The increase of approximately €6.8 million (+3.7%) in personnel costs mainly reflects an increase in the average remuneration per employee. The increase in depreciation (+6.7%) was mainly due to the increase in investments made in recent years.

The impairment provision (essentially for receivable amounts) reflects a loss of €1.2 million.

Other operating gains and expenses increased by €1.7 million. The impact of exchange rate fluctuations on receivables and payables, as well as the respective exchange rate hedging, resulted in a gain of €0.6 million, compared with a loss of €1.9 million in 2022.

Consolidated EBITDA totalled €177.0 million, representing an increase of approximately 8% compared with the previous year, due mainly to higher activity levels. The EBITDA-sales ratio was 18.0% (2022: 16.1%).

The EBITDA-sales ratio for the Amorim Florestal and Amorim Cork BUs was 21.1% (2022: 18.8%). This increase in the EBITDA margin reflects higher prices, an improved product mix, lower energy costs and an improved milling performance.

Amorim Cork Flooring's EBITDA-sales ratio decreased from -1.3% in 2022 to -8.5% in 2023, due mainly to an operational slowdown reflecting lower sales levels, despite the EBITDA margin benefitting from lower energy, transportation and marketing expenses.

Amorim Cork Composites recorded an increase in its EBITDA-sales margin from 17.4% in 2022 to 21.0% in 2023. This improvement, in spite of lower sales volumes and higher cork prices, was mainly due to product mix improvements, lower energy costs and the impact of more favourable exchange rates.

The EBITDA-sales ratio for Amorim Cork Insulation was -8.6% (2022: 5.5%). Operational results were affected by the increase in cork consumption prices and reduced activity levels.

EBITDA-sales ratio by Business Unit:

EBITDA/Sales (%)	2021	2022	2023
Amorim Florestal + Amorim Cork	20.0%	18.8%	21.1%
Amorim Cork Flooring	2.3%	-1.3%	-8.5%
Amorim Cork Composites	8.6%	17.4%	21.0%
Amorim Cork Insulation	14.2%	5.5%	-8.6%
Consolidated	16.0%	16.1%	18.0%

Values in million euros.

EBIT totalled €125.1 million, an increase of 8.5% compared with the previous year. Depreciation increased 6.7% as a result of the increase in investments in recent years.

Non-recurring results totalled €0.8 million. These included capital gains of €5.1 million from the sale of a property in Corroios (investment properties), the cost of discontinuing the product line at Amorim Cork Flooring (€1.0 million) and restructuring costs (-€3.2 million), mainly due to the industrial reorganisation of an Amorim Cork subsidiary.

Financial expenses increased compared with the previous year, reflecting the increase in average debt and the average financing rate.

In regard to associate company earnings, profits accrued to Corticeira Amorim from companies where it does not own a majority of the share capital and/or voting rights totalled €3.0 million, a decrease compared with 2022 (€4.8 million). A decrease in the contribution from Vinolok was the main reason for this reduction, which fell from €2.8 million to €1 million. The contribution from the associate company Corchos Argentina was similar to that of the previous year (€1.4 million in 2023 and €1.3 million in 2023).

In 2023, the effective tax rate [corporation tax/before-tax earnings] increased to 17.3%, compared with 5.1% in 2022. In 2022, the

effective tax rate was impacted by a favourable decision by the Central Administrative Court North in a case concerning the IRC (corporation tax) paid by Corteira Amorim in 2007. The ruling led to the annulment of an €8.2 million provision and the recognition of an €3.2 million asset to be received from the state. Excluding this effect, the effective tax rate in 2022 would have been 14.8%. The effect of the settlement of tax incentives for investment (SIFIDE-the Tax Incentive Scheme for Business R&D and RFAI–the Investment Support Tax Regime) balanced against the reversed provisions maintained on the benefit (upholding Corticeira Amorim's policy of making recognition conditional on the future achievement of objectives) had a positive impact on earnings, which should continue in the coming years.

Earnings from non-controlling interests decreased to €11.2 million, compared with €12.2 million in 2022. The main contribution to the decrease was from the SACI Group, where earnings from the Company's non-controlling interests fell to €5.1 million in 2023, down from €5.8 million in 2022.

After tax on earnings of €20.9 million and the appropriation of €11.2 million in earning from non-controlling interests, the consolidated net profit attributable to Corticeira Amorim shareholders totalled €88.9 million, a decrease of 9.7% compared with the €98.4 million recorded in 2022.

Values in million euros.

9. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In regard to the Company's financial position, total assets stood at €1.415 billion, representing an increase of approximately €146 million. The items that contributed most to the increase were tangible fixed assets (an increase of €45.7 million resulting from increased investment offset by depreciation) and inventories (an increase of €111 million).

In terms of equity, the variation of €55 million was mainly due to earnings in the financial year (€88.9 million), the distribution of dividends (€38.6 million) and the change in the consolidation perimeter resulting from the acquisition of the VMD Group (€6.1 million).

On the liabilities side, the increase of €90.8 million was essentially due to the increase in remunerated debt (€100 million). As of December 31, 2023, net remunerated debt totalled €241 million, an increase of €111.9 million compared with the previous year. This variation is explained by the increase in working capital needs (€108 million, mainly due to the increase in inventories) and by the EBITDA generated. The acquisition of the VMD Group (€12 million), increased investment in fixed assets (€95 million) and dividend payments (€39 million) all contributed to net debt.

The financial autonomy ratio stood at 56.5%, representing a slight decrease compared with the previous year.

10. MAIN CONSOLIDATED INDICATORS

		2022	2023	yoy	4Q22	4Q23	qoq
Sales		1,021,391	985,467	-3.5%	231,093	222,248	-3.8%
Gross Margin – Value		523,766	507,633	-3.1%	111,356	115,073	3.3%
Gross Margin / Sales		51.3%	51.5%	+ 0.2 p.p.	48.2%	51.8%	+ 3.6 p.p.
Operating Costs - current		408,451	382,563	-6.3%	90,849	91,729	1.0%
EBITDA - current		163,954	176,985	7.9%	32,794	37,200	13.4%
EBITDA/Sales		16.1%	18.0%	+ 1.9 p.p.	14.2%	16.7%	+ 2.5 p.p.
EBIT - current		115,315	125,070	8.5%	20,507	23,345	13.8%
Net Income	1)	98,394	88,897	-9.7%	34,235	21,886	-36.1%
Earnings per share		0.740	0.668	-9.7%	0.257	0.165	-36.1%
Net Bank Debt		128,988	240,839	111,851	-	-	-
Net Bank Debt/EBITDA (x)	2)	0.79	1.36	0.57 x	-	-	-
EBITDA/Net Interest (x)	3)	148.6	52.6	-95.96 x	79.9	39.9	-39.99 x

1) Includes non-recurring costs, mainly from the sale of an investment property and the recognition of impairments

at Amorim Cork (industrial reorganization) and Amorim Cork Flooring (discontinuation of product line).

2) Current EBITDA of the last four quarters.

3) Net interest includes interest from loans deducted of interest from deposits (excludes stamp tax and commissions).

Since 2011, Corticeira Amorim's employees have participated in Green Cork, a programme promoted by Quercus which promotes the recycling of cork stoppers and planting of native trees. It has contributed to the planting of tens of thousands of cork oak trees in Portugal.

11. ACTIVITIES OF CORTICEIRA AMORIM'S NON-EXECUTIVE DIRECTORS

During the year, the non‑executive members of the Board of Directors regularly attended the monthly meetings of the Board, where all matters that could not be delegated or were included on the Board's agenda because of their importance, scale or critical timing were discussed and analysed.

The meetings were organised administratively to ensure that all board members, executive and non‑executive, could adequately prepare beforehand, encouraging the active participation of all members in the debate, analysis, and tabling of decisions in benefit of the productivity of the meetings and the efficiency of the Group. The calendar of ordinary meetings of the Board of Directors was agreed at the end of 2022 so that all members could attend. Any board member, including non‑executive members, could submit points or discussion subjects for inclusion in the agenda up to two working days before each meeting.

A system has been implemented that enables the Executive Committee to report to the Board of Directors in such a way as to ensure that the activities of the two bodies are properly aligned and that all members of the Board of Directors are informed in a timely fashion of the activities undertaken by the Executive Committee.

Thus, in addition to matters which by law or the Articles of Association are of the exclusive competence of the Board of Directors, non-executive board members were informed of and able to follow:

• The annual plan and the evolution of the operating activities and of the main economic and financial indicators of all the BU that make up Corticeira Amorim;
• Significant consolidated financial information: financing, investment, equity to total assets ratio and off-balance sheet liabilities;
• Activities carried on by different support services and their impact on the Organisation;
• The development of R&D+I activities;
• The process of acquiring and/or establishing new companies, as well as the investment plan of all the BU that make up Corticeira Amorim;
• The activities developed by the Company's specialised internal committees;
• The formalisation and updating of internal regulations, namely Corticeira Amorim's codes and corporate policies;
• The calendar of market events and statements, and of the dissemination of information to the market;
• The calendar of the main events involving Corticeira Amorim and its BU.

12. FUTURE OUTLOOK

12.1 THE WORLD ECONOMY

12.1.1 OVERVIEW

At the beginning of the year, the outlook for 2024 was favourable. The IMF revised its growth forecasts upwards, notably for the US and China. Both countries are experiencing a gradual slowdown as their economies resist the impact of the restrictive monetary policies introduced in 2022 and 2023 and respond to a reduction in inflation to levels compatible with price stability.

Taking these trends into account, the global economy is expected to expand at a rate of about 3.1% in 2024, a similar growth rate to that of 2023, although the pace of expansion is likely to vary in different regions, with the US economy slowing down, the Eurozone evolving more favourably (almost doubling its pace of GDP growth) and China growing at a slower rate than in 2023. Growth will be weaker in the first half, but should gain momentum towards a stronger recovery in the second half. Disinflation, an easing of monetary policy (despite the prudent stance of central banks), fiscal consolidation in the face of high levels of aggregate debt, increased geopolitical risks and, critically, a focus of attention on the US presidential elections (November 5) are all likely to be key issues in 2024. Political risk will also be an important factor that could alter many assumptions. Moves towards inflation targets consistent with price stability will potentially be more pronounced in the US than in the Eurozone - notwithstanding "last mile" resistance to price reductions in the services sector. Geopolitical changes could also pose significant risks for maintaining an overall trend of price deceleration, particularly in regard to energy prices. The challenge in China, on the contrary, is likely to be deflation and overcoming difficulties in the real estate sector. Improvements in the labour market are projected to prove more difficult than those made over the previous three years. Labour shortages, which continue to be reported, will possibly be among factors limiting economic growth. Despite facing challenges, international trade is expected to evolve positively, but below the level of historical average growth.

The US economy is expected to grow 2.1% in 2024, above the projections made a few months ago, but below the performance of 2023. The "exceptionalism" of the US economy, which was particularly salient in 2023 and at the beginning of 2024, remains strongly evident. Although frequently mentioned, the prospect of a recession has been successively postponed and lessened, with consumption proving resilient. As the year progresses, however, the pace of consumption growth is expected to weaken. Pressures on the commercial real estate sector due to rising interest rates and ongoing structural changes are a cause of concern, especially considering the potential impact on the US banking system. Notwithstanding other issues, however, the key factor will be the presidential elections that take place in November.

Being more sensitive to the transmission of monetary policy than the US, the Eurozone economy is expected to accelerate more gradually than in 2023, expanding at a rate marginally below 1%. Public debt, which fell to 89.9% of GDP in 2023, is likely to fall further as a percentage of output, mainly due to expected changes in fiscal policy following the EU agreement on new fiscal rules and the pressure

resulting from increased defence budgets, a factor that will continue in 2024. The year began with lower energy prices and high reserve levels, a favourable combination, especially when compared with the situation 12 months previously. Challenges include a growth pattern based on industry, the change in China's structural performance and the persistence of a war on European territory.

China achieved a surprising growth rate in 2023, considering its late introduction of support for the economy. The pace of growth is expected to decelerate to about 4.6% in 2024, penalised by balance sheet problems among real estate developers and a necessary major adjustment in the sector, which poses systemic risks for other sectors. The introduction of comprehensive and robust fiscal measures is a key assumption that is seen as critical to ensuring that the situation does not become more widespread or worsen significantly. Chinese society appears to be experiencing a generalised crisis of confidence, thereby increasing deflation. There is also concern that excess industrial capacity will contribute to a drop in factory exit prices. The risk of China entering a debt deflation spiral is not insignificant.

12.1.2 PORTUGAL

Economic growth in Portugal is expected to decelerate to about 1.8% in 2024 (down from 2.4% in 2023). Growth at above the Eurozone average is projected to accelerate throughout the year, benefiting from being less penalised by external demand, the positive impact of lower inflation on Portuguese household incomes and increased investment, partly due to the EU's Recovery and Resilience Plan and the ongoing energy transition. Inflation is expected to continue decreasing as it has since price increases reached a peak of 7.8% in 2022, and is likely to drop to a rate of about 2.4%. The implied interest rate on mortgage loans is estimated to have more than tripled between 2022 and 2023, pointing to a less positive increase in consumption in 2024, even under current financial conditions, which are expected to ease in the coming months. The labour market is expected to deteriorate marginally in 2024, with a minimal increase in unemployment. The trade balance is expected to remain positive, cementing this recent structural change. In terms of public accounts, Portugal is again likely to achieve a budget surplus, albeit a smaller one than in 2023, reflecting lower economic activity and expansionist fiscal measures. The trend of public debt decreasing as a percentage of GDP is not expected to change.

12.2 OPERATING ACTIVITIES

12.2.1 AMORIM FLORESTAL

EBITDA is expected to be higher in 2024 than in the previous year, reflecting an expected increase in activity and the repositioning of sale prices in line with the raw material price increases registered in 2023. An expected stability of purchase prices in the secondary market and the consolidation of operational efficiency projects in recent years should also be decisive factors in this evolution.

By business areas, Granulates and Falcas (pruned cork) are expected to recover the profitability levels substantially, reflecting improved raw material yields, higher activity levels and the repositioning of sale prices. These areas should compensate not only the Preparation area, where cork consumption at a much higher price than in 2023 is expected to place pressure on results, but also the Discs area, where a downturn in activity is expected, particularly for Twin Top stopper.

Operational costs are expected to remain in line with those recorded in 2023.

The development of new processes to improve operational or product efficiency will remain a strategy of Amorim Florestal. All operational areas have ongoing projects which, through the introduction of new technologies (deep learning, robotic process automation, artificial intelligence and advanced optic vision, among others) are aimed at improving current levels of operational efficiency.

In the case of electricity, due to higher network access tariffs, the trend registered in 2023 is expected to be reversed. The investments in photovoltaic panels made in 2023 are projected to make a positive contribution to reducing costs.

In regard to supplies and external services, the inflationary climate is expected to have more important impact on conservation and repair operations and specialised services. Ongoing cost reduction plans are in place, aimed at reducing this impact by implementing new ways of working and using new materials and alternative suppliers.

Personnel costs are expected to rise in 2024, due to planned salary increases and the increased employee benefits, specifically the expansion of variable performance-related remuneration.

The 2024 purchasing campaign is likely to be characterised by cork supply stability, thereby ensuring normal purchase quantities and the supply of Corticeira Amorim's BUs. It would be desirable to find a new balance of prices, adjusting the lower demand for products in end markets for different applications to a necessary reduction in the average purchase price.

During the cork extraction campaign, the focus will be on adopting new working models in the field using technology, specifically in the cork extraction process, increasing the number of extraction machines available for the 2024 campaign. Improvements to extraction machines are expected to be fully implemented, ensuring suitable reliability and productivity levels.

In regard to the Forestry Intervention Project, the planting of new areas at the Herdade de Rio Frio estate is expected to continue by means of a new dense-planning project covering approximately 400 hectares. The continued planting of new cork oaks at Herdade da Baliza in 2024 over a planned area of 200 hectares is also envisaged.

In terms of plant production, after mastering the required production techniques in 2022 and 2023, production capacity will be expanded on an increasing scale, gradually ensuring the quantity and consistency of genetic selection of the plants to be used.

12.2.2 AMORIM CORK

There is a great deal of uncertainty about market evolution in 2024. The year is expected to get off to a slow start (in line with the situation in late 2023), though should recover during the year. Supply chain disruptions must still be resolved and may also impact the evolution of business.

The year is still expected to be positive, both in volume and in value. No stopper production constraints are expected, as installed capacity is able to meet market needs and the necessary cork raw material has also been procured. The year will focus on a value proposition grounded on Sustainability, Quality, Service and Innovation.

Cork purchase prices once again rose during the 2023 season, creating the need for yet another increase in sale prices, even though their implementation is more difficult than in previous years.

To ensure that the BU's profitability is maintained, it will also be vital to maintain purchasing efficiency, especially for chemicals, packaging material, wood and transport, whose prices are still above pre‑pandemic levels. With a stable economy, the possibility of benefiting from lower prices for all those materials can be expected in 2024.

Another guideline for the year centres on control of the capital invested at three levels:

• After the stock repositioning in 2023, careful management of the stopper level in all product families (in Portugal and in the companies abroad), ensuring a continuous flow between production and customers;
• Management of customers' debt and focus on recovering customer impairments;
• More contention and consolidation of investments made in previous years, after the strong investment in recent years.

Still Wines

Production is expected fall worldwide, which should lead to more competition among the various players seeking to conquer the market. The global distribution network and the offering of a range of exclusive and high-performance stoppers enable Amorim Cork to confront the year on a positive basis.

Regarding natural stoppers, despite the good performance of the Naturity stopper, process improvements will be developed to boost its performance. For micro stoppers, the growth strategy of the Xpür stopper will be maintained and that has shown high market receptivity. This should be the stopper family with more growth in 2024.

Sparkling Wines

Sales for this segment should recover.

The major challenge is in terms of profitability. This stopper segment has been hard hit by higher cork raw material prices; due to the respective market's competitiveness, it will be hard to pass them on entirely to customers.

The resources allocated to this segment will be assessed in 2024; the introduction of some changes that should lead to improved operational efficiency is now being considered. Those changes will include reorganisation of the existing production units at Amorim Cork.

Spirits

With constant evolution in the premium and ultra-premium segments, the growth of Amorim Bartop should be assured by increased sales of wooden capsules and improved service.

This segment's growth should be achieved by gaining new customers and new markets. Prospecting work was carried out in 2023, the aim being to identify target markets to develop. They will be a priority for the coming year.

The vertical structuring of the business through reinforcement by the two new industrial units that opened in 2023 (Biocape Madeiras and Elfverson Portugal) should result in more control of the entire production chain and improved profitability.

12.2.3 AMORIM CORK FLOORING

Amorim Cork Flooring substantially changed its product portfolio due to implementation of the Go4Green programme, which begun in 2022, and that is meant to develop new flooring solutions that meet major market demands and are based on state-of-the-art embossing digital printing techniques, a new surface finish and a changed composition of the products base.

The new products were presented in early 2024 at major international fairs for the flooring industry such as DOMOTEX in Europe and SURFACES in the USA; they are aligned with the BU's aim to continue emphasising sustainability and ensuring a competitive price-quality relationship. The new products' reception has been promising and seems to indicate a high level of market acceptance, with consequent prospects for sustained sales growth.

Sales performance in 2024 will be marked by changes in the product portfolio, with the PVC lines made by the BU discontinued, safeguarding the new products' value position in the intermediate and high ranges. No major changes are expected in the unfavourable context affecting the flooring industry, although there are some positive signs indicating an upturn in late 2024.

In innovation the aim is to continue the GREEN transition, focusing on the development of sustainable practices and standards with processes and procedures geared toward waste reduction and economy of resources.

12.2.4 AMORIM CORK COMPOSITES

The outlook for 2024 indicates a recovery of sales growth, with higher volumes while maintaining profitability levels in line with the increase in invested capital and its cost.

Activity is unlikely to progress homogeneously over the course of the year and a relatively slower start is to be expected. A consolidation of the contribution of Amorim Cork Composites' key strategic priorities for turnover is awaited, with higher growth rates compared with more current business, leveraged on products, technologies and innovative applications.

The global geopolitical and economic situation is not the most favourable, with uncertainty and risk affecting several areas, that could have an impact on demand and non-cork raw material prices, particularly energy and logistics services.

The price of cork price is expected to continue exerting pressure on margins. Several initiatives are under way and will be reinforced with the aim of managing and mitigating their impact on the competitiveness of different value propositions. These include diversifying and increasing the profitability of raw material suppliers, as well as the greater use of recently acquired innovative production technologies. Investment in fixed assets is projected to be substantially lower in 2024.

12.2.5 AMORIM CORK INSULATION

Amorim Cork Insulation foresees growth in both sales volume and value in 2024, maintaining its position in the Middle East and reinforcing its presence in the Italian, French and North American markets.

In support of continuing efforts to promote current and future expanded cork agglomerate solutions, the BU will be present at the Concreta - Construction, Engineering, Architecture and Design Fair (Portugal) and will also organise the ninth International Cork Conference.

In a global market that increasingly favours the use of natural products with high technical efficiency, Amorim Cork Insulation will continue to make the case for the sustainability of the solutions it develops.

12.3 CONSOLIDATED RESULTS

The year 2023 was marked by geopolitical instability, with the ongoing war in Ukraine alongside numerous smaller but interconnected conflicts, which maintained additional pressure on the global economic environment and imposed new challenges on economic agents and supply chain management. In 2024, the assumption of low inflation may lead to a relaxation of monetary policy and fiscal consolidation. The increasing geopolitical risks are a strong possibility, with focus on the U.S. presidential elections.

As usual, the EUR/USD variation is another source of uncertainty that conditions the prospects for Corticeira Amorim's performance in 2024.

The year 2024 will be one of the most challenging for Corticeira Amorim. Following the price increase in 2023, the effect of the cork consumption price increase in 2024 will have a significant impact on the accounts. The pressure to increase wage expenditures will also continue to be significant. The electricity price context is expected to be less favorable than in 2023. To counter these trends, it will be necessary to implement additional adjustments to selling prices in a market that expects prices to decrease.

Regarding cork purchase prices, as mentioned earlier, a new balance will be necessary, adjusting the lower demand for products in final markets of various applications to a necessary reduction in the average purchase price.

In 2024, Corticeira Amorim is expected to pursue the objective of surpassing one billion euros in consolidated sales once again, seeking some improvement in profitability measured by the EBITDA/Sales ratio. At the level of Corticeira Amorim's regular activity, the continuous increase in operational efficiency and the search for new markets, diversifying the solutions offered to meet customer needs, should be objectives that the Organization will continue to pursue.

In 2024, Amorim Cork should continue the integration of the VMD Group, which was first consolidated in 2023. The UN will continue to focus on sales growth (in value and quantity) in the three segments and improving operational efficiency. Amorim Cork will seek to grow above the wine market. As a result of the price increases in the 2023 campaign, implementing price increases in 2024 is a necessity. There are

relevant markets in spirits that are still unexplored, and constraints on plastic seals open doors to natural and sustainable alternatives presented by Corticeira Amorim.

Amorim Cork Composites faces the challenge of maintaining profitability by returning to pre-2023 sales levels.

The year 2024 for Amorim Cork Flooring will be one of profound change after a year of sales loss, resulting from changes in the product portfolio, as a result of the Go4Green program execution. Despite the unfavorable context affecting the flooring industry, Amorim Cork Flooring aims to resume the path of profitability it had previously. The year 2024 will be decisive for the future of the business unit; either the product is accepted in the market or more in-depth measures in terms of business strategy will have to be implemented.

Amorim Cork Insulation will also be affected by the increase in cork consumption prices, particularly at the beginning of the year. Measures of production efficiency and sustainability arguments are guidelines for the path to follow.

13. BUSINESS RISKS AND UNCERTAINTIES

Over the course of its 150‑year history, Corticeira Amorim has successfully confronted several profound social transformations.

Corticeira Amorim's activities are exposed to a variety of financial risks: market risks (including exchange rate and interest rate risks), credit risks, liquidity risks and capital risks. Pursuant to paragraph 5(e) of Article 508-C of the Companies Code, the Company's objectives, and policies in terms of managing these risks, including the coverage policies for each of the main forecast transaction categories for which coverage accounting is applied, and the exposure to pricing, credit, liquidity and cash flow risks are duly set out in the Note on Financial Risk Management included in the Notes to the Consolidated Financial Accounts.

In addition, chapter III - Internal control and risk management, of the 2023 Corporate Governance Report sets out the risk management model in operation at Corticeira Amorim, including the identification and description of the main risks to which the Company is exposed in the exercise of its activities, as well as the mitigation measures appropriate to minimising the probability of them occurring and/or their impact.

14. TREASURY STOCK

There were no transactions involving Corticeira Amorim's own shares and thus Corticeira Amorim held no treasury stock at the end of the year under review.

15. PROPOSED APPROPRIATION OF PROFIT

The Board of Directors of Corticeira Amorim, S.G.P.S., S.A., taking into account the positive net income, calculated according to the individual accounts at the end of the 2023 financial year, of € 22,993,630,97 (twenty-two million, nine hundred and ninetythree thousand, six hundred and thirty euros and seventy-seven cents) and the existence of distributable reserves in the amount of €101,901,396.97 (one hundred and one million, nine hundred and one thousand, three hundred and ninety-six euros and ninetyseven cents), proposes that the Shareholders approve:

• The coverage of the transition adjustments in the amount of €1,147.06 (one thousand, one hundred and forty-seven euros and six cents),
• The distribution of dividends in the amount of €26,600,000.00 (twenty-six million and six hundred thousand euros), €0.20 (twenty cents) per share, corresponding to the value of €22,992,483.71 (twenty-five two million, nine hundred and ninety-two thousand, four hundred eighty-three euros and seventy-one cents) of the net profit for the year 2023 and plus the value of €3,607,516.29 (three million, six hundred and seven one thousand, five hundred and sixteen euros and twenty-nine cents), part of what exists under the heading "Distributable Reserves".

Wooden capsule production process at the Biocape plant.

16. GOVERNANCE

During 2023 the company maintained the governance model adopted (Anglo‑Saxon), significantly strengthening the policies and procedures, both through reviewing the norms and formally introducing new norms, as well as actions designed for their dissemination, adoption, and progressive verification of the compliance of routines with these norms.

Highlights:

Model:

• Replacement of the Appointments, Evaluation and Remuneration Committee, appointed by the Board of Directors, with an Appointments, Evaluation and Remuneration Committee elected by the General Shareholders' Meeting (held on 28 April 2023), pursuant to the provisions of paragraph 1 of Article 399 of the Companies Code and paragraph 4 of Article 19 of the Company's Articles of Association. This committee is entirely composed of independent members;

Policies:

• Approval of the Remuneration Policy (2022-2024): approved at the General Shareholders' Meeting held on 28 April 2023, which, in relation to the executive directors of Corticeira Amorim, includes the definition of a variable component of remuneration. This intends to implement an incentive system that ensures the alignment of the interests of these directors with the interests of the Company and its stakeholders, from a perspective of economic, social, and environmental sustainability in the short, medium and long-term;

Codes:

• Review of Corticeira Amorim's Code of Business Ethics and Professional Conduct, clearly identifying the Company's Ethics (general principles the company assumes as ethical conduct) and Professional Conduct to be followed by all members of staff; adjustments to the written formula of the Mission (reference to Ethics), Vision (reference to the integration of Diversity) and Values (strengthening sustainability and social responsibility as regards members of staff and other stakeholders); and alignment with procedures and channels for reporting infringements;
• Formalisation of the Anticorruption Code of Conduct and the Risk Prevention Plan for Corruption and Related Offences. These documents have now entered the Regulatory Compliance Program (under the terms of Decree Law no. 109‑E/2021, of 9 December, which enacts the new General Regime for the Prevention of Corruption), replacing the former Anticorruption Policy;
• Issue of the Interim Assessment Report of situations classified as high or maximum risk in the Risk and Related Offences Prevention Plan which shows that such situations are now considered to have a lower residual risk, following the strengthening of measures to mitigate those risks;

• Formalisation of the Code of Conduct for Suppliers, based on the principles established in the Anticorruption Code of Conduct and destined only for suppliers. in the expectation that they themselves adhere to the practices of the Corticeira Amorim;

Regulations and procedures:

• Review of the Procedure for Reporting Irregularities (whistleblowing) and the respective form for communicating any irregularities; and implementation of an online reporting platform, on the Corticeira Amorim website (https:// corticeiraamorim.integrityline.com/frontpage);
• Formalisation of the 2024 Equality Plan, establishing the lines of intervention in this area, seeking to attain the established targets.

Initiatives for the disclosure, adoption, and verification of compliance:

• Appointment of the Compliance Officer to guarantee and control the application of the Regulatory Compliance Programme regarding the prevention of risks of corruption and related offences;
• Disclosure of procedures and forms for the registration of the offer/acceptance of gifts, as well as an exceptional approval request form for the offer/acceptance of gifts;
• Study of compliance verification procedures in terms of Human Rights (child labour and forced labour).

Finally, it should be emphasized the strengthening of the reporting model for the specialised internal commissions of the Board of Directors, enabling the full knowledge of the activities undertaken by these commissions and their interactions with the various transversal support areas of Corticeira Amorim in order to enhance the constant alignment of their activities with the priorities of the Organisation.

Therefore, at the end of 2023, a relevant evolution in the governance policies and practices was in place, in line with the recommendations of the Code of Corporate Governance issued by the Portuguese Institute of Corporate Governance (code applied by Corticeira Amorim as its reference in its formal annual reporting on company governance) and with what the Company's various stakeholders, in particular its shareholders, investors and ESG rating agencies, evaluate as the best governance practices.

17. ANNUAL PERFORMANCE ASSESSMENT

It is the responsibility of the Appointments, Evaluation and Remunerations Commission (AERC hereafter), as established in the respective Regulation, to advise the Board of Directors on the annual Company evaluation process, including evaluation of the Executive Commission, the Audit Commission, and the internal specialist commissions. To this end, AERC carried out a set of different actions seeking to gather the information relevant to the aforementioned evaluation process for 2023.

In keeping with best practices, a questionnaire was drafted and sent to every member of the aforementioned management bodies and commissions. It was answered by every member and thereby evaluating aspects relating to the organisation, functioning, interactions and dynamics of meetings, the composition of the body or commission and aspects relating to its actions and functioning as applicable. The statistical analysis of the responses returns a conclusion that there is a high level of satisfaction (4.54 on a scale of 1 to 5 in which 5 represents total satisfaction) as regards the various aspects subject to questioning. This process also received suggestions for improvement on certain aspects.

It is the belief of the Board of Directors that this result displays the robustness of the governance model and the policies and practices implemented as well as the commitment of all those sounded out for consultation, both individually and at the level of each body/ commission, integrate into the high levels of performance deployed in service of the competitiveness of Corticeira Amorim and the creation of long-term value for its stakeholders.

As part of the annual assessment of the Company's performance in terms of corporate governance, the Board of Director recognises and underlines the professional, diligent, judicious and proactive work of all the members of Corticeira Amorim's Board of Directors and Executive Committee and their non‑executive members, the Audit Committee, the Risk Committee, the Environmental, Social and Governance (ESG) Committee and the Appointments, Evaluation and Remuneration Committee in office since 28 April 2023 (elected at the General Shareholders' Meeting held on 28 April 2023, under the provisions of paragraph 1 of Article 399 of the Companies Code and paragraph 4 of Article 19 of the Company's Articles of Association, composed entirely of independent members), towards:

• Defining, implementing, and complying with Company strategy, thereby ensuring high levels of performance over the short, medium and long term;
• Defining, implementing, and monitoring risk management policies and practices for anticipating, preventing and mitigating risks;
• Maintaining a close and collaborative relationship between the members of the different boards and between the Company's other bodies and functional areas;
• Ensuring the sustainable development of the Company and the creation of value for all its stakeholders.

It also highlights:

• 1. the effective contribution of the Environmental, Social & Governance (ESG) Committee, advising the Board of Directors in the monitoring, supervision, and strategic guidance of Corticeira Amorim in the field of corporate governance, social responsibility, environmental and ethics matters, promoting comprehensive and well-founded analyses of the aforementioned topics;
• 1. the work of the Risk Committee to strengthen the risk culture of Corticeira Amorim, contributing to the continuous implementation of systematized procedures, aiming for the continuous monitoring of the main risks inherent to the activity and the effectiveness of the mitigation measures implemented, while appraising the level of exposure to risk and its potential evolution, with a view to assisting the Board of Directors in supervising the execution of the risk strategy, issuing opinions and recommendations on risk strategies;
• 1. the effective and efficient performance and supervision of the Audit Committee and all its members, in favour of (i) the promotion and supervision of the effectiveness of the internal audit system, including the activity plans of both the internal and external audits; and (ii) more reasoned and independent appraisal and deliberations, namely in assessing the independence of the external auditor, dealings with interested parties and handling communications of irregularities;
• 1. Notable in terms of policies and practices in matters of appointments, evaluation and remuneration, the competent and independent performance of both the Appointments, Evaluation and Remuneration Committee in office until 28 April 2023 and the Appointments, Evaluation and Remuneration Committee in office since 28 April 2023, is the work to define and implement appropriate policies and practices, aligned with national and international ESG trends, in order to foster high levels of performance and professionalism to drive the development of the sustainable growth strategy of Corticeira Amorim.

It is therefore considered that these Committees have a composition appropriate to the size of the company and the complexity of the risks inherent to their activity, which efficiently guarantees the duties assigned to them. This professional, committed, and diligent performance has guaranteed the good performance of the Company. It is the belief of the Board of Directors that this will continue to foster adequate performance in the long-term, thereby making a significant contribution to stakeholders and the community in general, as conveyed by the Consolidated Financial Statements and in sections 5.2 Community/Society and Innovation (impact on society), 4. Environmental information and 5. Social information (social and environmental impacts).

© Pedro Sadio, 2015

NDTech individually checks each natural cork stopper, thereby confirming that, if any TCA remains present in the cork, it lies below the detection threshold of 0.5 nanograms/litre*.

* releasable TCA content below the 0.5 ng/L quantification limit; analysis performed in accordance with ISO 20752.

18. STATEMENT OF RESPONSIBILITY

In compliance with the provisions of paragraph 1(c) of Article 29-G of the Securities Code, the members of the Board of Directors state that, to the best of their knowledge, the annual accounts and other accounting documents were drawn up in accordance with applicable accounting standards, providing a true and fair view of the assets and liabilities, the financial situation and profits/losses of Corticeira Amorim, S.G.P.S., S.A., as well as the companies included in the consolidation perimeter. They also state that the management report faithfully presents the business evolution, performance, and position of Corticeira Amorim, S.G.P.S., S.A. and the companies included in the consolidation perimeter, and that the report includes a special chapter describing the main risks and uncertainties of the company's businesses.

19. SUBSEQUENT EVENTS

At the date of issuance of this report, there were no material events that could materially affect the financial position and future results of Corticeira Amorim and all subsidiaries included in the consolidation.

20. FINAL WORDS

The Board of Directors would like to take this opportunity to express its gratitude to:

• the Company's shareholders and investors for their unfailing trust;
• the credit institutions with which the Group works for their invaluable cooperation;
• the Supervisory Board and the Statutory Auditor for the rigour and quality of their work; and
• to all our employees, whose professionalism, willingness and commitment have contributed so much to the development and growth of the companies belonging to the Corticeira Amorim Group, we express our sincere appreciation.

Mozelos, March 25, 2024

The Board of Directors of Corticeira Amorim, S.G.P.S., S.A. António Rios de Amorim (Chairman) Nuno Filipe Vilela Barroca de Oliveira (Vice-Chairman) Fernando José de Araújo dos Santos Almeida (Member) Cristina Rios de Amorim Baptista (Member) Luisa Alexandra Ramos Amorim (Member) Juan Ginesta Viñas (Member) José Pereira Alves (Member) Marta Parreira Coelho Pinto Ribeiro (Member) Maria Cristina Galhardo Vilão (Member) António Manuel Mónica Lopes de Seabra (Member)

In partnership with the University of Catalonia, Amorim Cork Insulation helped build the FLORA project, an observatory to monitor nature. Combining science, education and sustainability, cork is once again at the forefront of building the future.

Corporate Governance Report

Corticeira Amorim has been reviewing its corporate governance since 1999, the date on which the Portuguese Securities Market Commission (CMVM) published the first recommendations on the governance of listed companies, aiming at the improvement of mechanisms for the protection of investors in securities markets. The Company compares it with, on the one hand, what are considered best practices and on the other, with the circumstances of its activity and the challenges it has to meet. As a result, it has been implementing a set of measures which, overall, have the main objectives of strengthening the internal systems of control and supervision, enhancing transparency, fostering the participation of shareholders in the life of the Company and ensuring the sustained creation of shareholder value.

This document describes corporate governance policies and practices adopted by the Company, while also providing a qualitative assessment of them compared with the best practices listed in the 2018 Corporate Governance Code, revised in 2023, of the Portuguese Institute of Corporate Governance (IPCG), available at https://cgov. pt/images/ficheiros/2023/en\_cgs\_revisao‑de‑2023\_ebook.pdf.

This report also includes the information referred to in article 447 of the Portuguese Companies Code, in article 29‑H(1)(a) of the Portuguese Securities Code (Diversity policy applied by the company with regard to its management and supervisory bodies) and in article 5 of Law no. 62/2017 of 1 August (balanced representation of women and men in management and supervisory bodies).

Law no. 50/2020, of 25 August transposed to the Portuguese legal system Directive (EU) no. 2017/828 on the rights of listed company shareholders as regards long‑term engagement, which entailed the repeal of Law no. 28/2009, of 19 June that previously governed the duty to present a remuneration policy. Rules were introduced, at the same time, in the Portuguese Securities Code regarding i) the approval of the Remuneration Policy for members of the management and supervisory bodies of issuers of shares admitted to trading on a regulated market and ii) the remuneration report. Following the approval of the remuneration policy, under the terms provided for in the aforementioned Law No. 50/2020, at the General Meeting of 28 April 2023, on a proposal from the Board of Directors submitting for shareholders' consideration the independent Remuneration Policy proposal drawn up by the Appointments, Evaluation and Remuneration Committee for the 2022‑2024 three‑year period, this report includes a chapter devoted to the 2023 Remuneration Report, pursuant to Article 26‑G(8) of the Portuguese Securities Code.

PART I MANDATORY INFORMATION ON SHAREHOLDER STRUCTURE, ORGANISATION AND CORPORATE GOVERNANCE

A. SHAREHOLDER STRUCTURE

I. CAPITAL STRUCTURE

1. The capital structure (share capital, number of shares, distribution of capital by shareholders, etc.), including an indication of shares that are not admitted to trading, different classes of shares, rights and duties of same and the capital percentage that each class represents.

Corticeira Amorim's share capital amounts to EUR 133 million and is represented by 133 million ordinary registered shares for a nominal value of one euro each, and which grant the right to dividends.

All shares issued by the Company are listed on Euronext Lisbon ‑ Sociedade Gestora de Mercados Regulamentados, S.A.

Distribution of capital among shareholders

Shareholder	No. of shares owned (quantity)	Stake (%)	Voting rights (%)
Qualifying interests:
Amorim Investimentos e Participações, S.G.P.S., S.A.	67,830,000	51.000%	51.000%
A Porta da Lua, S.A.	8,290,767	6.234%	6.234%
API – Amorim Participações Internacionais, S.A.	2,717,195	2.043%	2.043%
Vintage Prime – S.G.P.S., S.A.	2,717,195	2.043%	2.043%
Amorim, Soc. Gestora de Participações Sociais, S.A.	13,414,387	10.086%	10.086%
Free float*	38,030,456	28.594%	28.594%
Total	133,000,000	100.000%	100.000%

* Includes 3,045,823 shares (2.29%) held by funds managed by Santander Asset Management, S.A., S.G.I.I.C. (communication received by the Company on 6 June 2019).

2. Restrictions on the transfer of shares, such as clauses on consent for disposal, or limits on the ownership of shares.

There are no restrictions on the transfer of shares.

3. Number of treasury shares, the percentage of share capital that it represents and corresponding percentage of voting rights that corresponded to treasury shares.

As at 31 December 2022, Corticeira Amorim held no treasury shares and it did not engage in transactions during 2023, reason why as at 31 of December 2023 the Company did not own treasury shares.

4. The disclosures of important agreements to which the Company is a party and that come into effect, amend or terminated in cases such as a change in the control of the Company after a takeover bid, and the respective effects, except where due to their nature, would be seriously detrimental to the Company; this exception does not apply where the Company is specifically required to disclose said information pursuant to other legal requirements.

The Company has not entered into any agreements as described in this paragraph except for the normal "change of ownership" clauses included in certain loan agreements entered into during the normal course of operations, and which, on a case‑by‑case basis, have been analysed and their contractualisation considered appropriate for the Company's interests.

At 31 December 2023, there were covenants requiring the maintenance of Corticeira Amorim's controlling interest in contracts regarding loans totalling 175.05 million euros (31‑12‑2023: 130 million euros). In the case of change of shareholder control, the contracts usually provide the possibility ‑ but not the obligation ‑ of early repayment of the amounts loaned. It should be added that the Company has significant liquidity reserves, as detailed in the notes to the consolidated accounts (note 22). Specifically, at 31 December 2023, there were 229.9 million euros of contracted and unused credit lines (31‑12‑2022: 220.1 million euros).

This circumstance is not likely to impair the free assessment by shareholders of the performance of the members of the Board of Directors.

5. A system that is subject to the renewal or withdrawal of countermeasures, particularly those that provide for a restriction on the number of votes capable of being held or exercised by only one shareholder individually or together with other shareholders.

The Company's Articles of Association do not include measures of this type and, to the best knowledge of Corticeira Amorim, there are no other arrangements and/or measures with that same goal.

6. Shareholders' agreements that the Company is aware of and that may result in restrictions on the transfer of securities or voting rights.

Corticeira Amorim has no knowledge of the existence of any shareholders' agreements that might lead to the aforementioned restrictions.

II. SHAREHOLDINGS AND BONDS HELD

7. Details of the natural or legal persons who, directly or indirectly, are holders of qualifying interests, with details of the percentage of capital and votes attributed and the source and causes of the attribution.

Shareholder Amorim Investimentos e Participações, S.G.P.S., S.A.(a)	No. of shares	% of share capital with voting rights
Directly	67,830,000	51.000%
Attributable total	67,830,000	51.000%

(a) The shares with voting rights in Amorim Investimentos e Participações, S.A. are wholly owned by two companies, Amorim Holding II, S.G.P.S., S.A. (50%) and Amorim – Sociedade Gestora de Participações Sociais, S.A. (50%) without any of them having a controlling stake in the Company, ending the imputation chain, under the terms of Article 20 of the Portuguese Securities Code. The share capital and voting rights of these two companies are held, in the case of the former, directly and indirectly (through Oil Investment, B.V.), by Maria Fernanda Oliveira Ramos Amorim and daughters and, in the case of the latter, by António Ferreira de Amorim, wife and children.

Additional information: until 27 September 2023, the companies Amorim Holding Financeira, S.G.P.S., S.A. and Amorim Holding II, S.G.P.S., S.A. held shares representing 10.69% and 39.31%, respectively, of Amorim ‑ Investimentos e Participações, S.G.P.S., S.A.'s share capital and voting rights. The merger of Amorim Holding Financeira, S.G.P.S., S.A. with Amorim Holding II, S.G.P.S., S.A. was completed on 27 September 2023, with the former being incorporated into the latter. Amorim Holding Financeira, S.G.P.S., S.A. was thus wound up and all its rights and obligations transferred to Amorim Holding II, S.G.P.S., S.A. The shares representing 10.69% of the share capital and voting rights of Amorim ‑ Investimentos e Participações, S.G.P.S., S.A. are now, as a result, directly held by Amorim Holding II, S.G.P.S., S.A.

Shareholder Amorim, Sociedade Gestora de Participações Sociais, S.A.(b)	No. of shares	% of share capital with voting rights
Directly	13,414,387	10.086%
Attributable total	13,414,387	10.086%

(b) The capital of Amorim, Sociedade Gestora de Participações Sociais, S.A. is held by António Ferreira de Amorim, by his Wife and Children, but none of them holds a controlling interest in the Company.

Shareholder A Porta da Lua, S.A.(c)	No. of shares	% of share capital with voting rights
Directly	8,290,767	6.234%
Attributable total	8,290,767	6.234%

Maria Fernanda Oliveira Ramos Amorim	No. of shares	% of share capital with voting rights
Directly	-	-
Through the shareholder A Porta da Lua, S.A.(c)	8,290,767	6.234%
Attributable total	8,290,767	6.234%

(c) All the shares representing the share capital of A Porta da Lua, S.A. are held in usufruct by Maria Fernanda Oliveira Ramos Amorim, and the voting rights associated with these shares are therefore attributable to her.

Shareholder API – Amorim Participações Internacionais, S.A.(d)	No. of shares	% of share capital with voting rights
Directly	2,717,195	2.043%
Attributable total	2,717,195	2.043%

Marta Cláudia Ramos Amorim Barroca de Oliveira	No. of shares	% of share capital with voting rights
Directly	-	-
Through the shareholder API – Amorim Participações Internacionais, S.A.(d)	2,717,195	2.043%
Attributable total	2,717,195	2.043%

(d) The share capital of the company API – Amorim Participações Internacionais, S.A. is wholly owned by Marta Cláudia Ramos Amorim Barroca de Oliveira.

Shareholder Vintage Prime – S.G.P.S., S.A.(e)	No. of shares	% of share capital with voting rights
Directly	2,717,195	2.043%
Attributable total	2,717,195	2.043%

Luisa Alexandra Ramos Amorim	No. of shares	% of share capital with voting rights
Directly	-	-
Through the shareholder Vintage Prime – S.G.P.S., S.A.(e)	2,717,195	2.043%
Attributable total	2,717,195	2.043%

(e) The share capital of Vintage Prime – S.G.P.S., S.A. is wholly owned by Luisa Alexandra Ramos Amorim.

(*) Held directly and indirectly through the company Oil Investments, B.V.

8. A list of the number of shares and bonds held by members of the management and supervisory boards.

(a) Corticeira Amorim shares held and/or traded directly by members of the Board of Directors and by members of the supervisory body of the Company:

i. The members of the governing bodies did not trade any shares representing the share capital of the Company during the 2023 financial year. At 31 December 2023, they did not hold any shares in Corticeira Amorim.

(b) Corticeira Amorim shares traded by companies, in which the members of the Company's governing bodies exercise management or supervisory responsibility:

i. During the 2023 financial year there were no transactions under the terms set out in this note.

(c) Other changes in direct ownership of Corticeira Amorim shares in companies in which the members of the Company's governing bodies exercise management or supervisory responsibility:

i. During the 2023 financial year there were no amendments under the terms set out in this note.

d) Corticeira Amorim shares held by companies, in which the members of the Company's governing bodies exercise management or supervisory responsibility:

i. Amorim Investimentos e Participações, S.G.P.S., S.A. is the holder of 67,830,000 shares, representing 51% of the share capital and voting rights of Corticeira Amorim, S.G.P.S., S.A.

António Rios de Amorim (chairman of the Board of Directors of Corticeira Amorim), Nuno Filipe Vilela Barroca de Oliveira (vice‑chairman of the Board of Directors of Corticeira Amorim), Cristina Rios de Amorim Baptista e Luisa Alexandra Ramos Amorim (members of the Board of Directors of Corticeira Amorim) are, respectively, member, member, chairwoman and member of the Board of Directors of Amorim Investimentos e Participações, S.G.P.S., S.A.

ii. Vintage Prime – S.G.P.S., S.A. is the holder of 2,717,195 shares, representing 2.043% of the share capital and voting rights of Corticeira Amorim, S.G.P.S., S.A.

Luisa Alexandra Ramos de Amorim, member of the Board of Directors of Corticeira Amorim, holds the position of chairwoman of the Board of Directors of Vintage Prime – S.G.P.S., S.A.

iii. API – Amorim Participações Internacionais, S.A. is the holder of 2,717,195 shares, representing 2.043% of the share capital and voting rights of Corticeira Amorim, S.G.P.S., S.A.

Nuno Filipe Vilela Barroca de Oliveira, vice‑chairman of the Board of Directors of Corticeira Amorim, is a member of the Board of Directors of API – Amorim Participações Internacionais, S.A.

iv. A Porta da Lua, S.A. is the holder of 8,290,767 shares, representing 6.234% of the share capital and voting rights of Corticeira Amorim, S.G.P.S., S.A.

Luisa Alexandra Ramos de Amorim, member of the Board of Directors of Corticeira Amorim, holds the position of member of the Board of Directors of A Porta da Lua, S.A.

v. The company Amorim – Sociedade Gestora de Participações Sociais, S.A. is the holder of 13,414,387 shares, representing 10.086% of the share capital and voting rights of Corticeira Amorim, S.A.

António Rios de Amorim and Cristina Rios de Amorim Baptista (respectively, chairman and member of the Board of Directors of Corticeira Amorim) hold the position of Directors of Amorim – Sociedade Gestora de Participações Sociais, S.A.

The ownership recorded on 31 December 2023, referred to in sections i. to v. remains unchanged at the issue date of this report.

(e) Transactions of directors and/or entities closely related to directors:

There were no transactions of Corticeira Amorim shares by entities related to its management.

No company which controls Corticeira Amorim or any of Corticeira Amorim's directors or officers or any person closely related to such directors or officers carried out transactions involving Corticeira Amorim's financial instruments.

(f) List of shareholders holding at least one‑tenth of the Company's share capital:

• i. The company Amorim Investimentos e Participações, S.A. holds 67,830,000 shares of Corticeira Amorim, corresponding to 51% of the share capital and 51% of the voting rights;
• ii. The Company Amorim Sociedade Gestora de Participações Sociais, S.A. holds 13,414,387 shares of Corticeira Amorim, corresponding to 10.086% of the share capital and 10.086% of the voting rights.

The share ownership referred to in i. and ii. refers to 31 December 2023, remaining unchanged at the date of publication of this report.

9. Special powers of the Board of Directors, especially as regards resolutions on the capital increase, with an indication as to the allocation date, time period within which said powers may be carried out, the upper ceiling for the capital increase, the amount already issued pursuant to the allocation of powers and mode of implementing the powers assigned.

It is the responsibility of Corticeira Amorim's Board of Directors to maintain effective control and guidance over the activities of the Company. It is the highest strategic decision‑making body (definition of strategy and main policies; organisation and coordination of the corporate structure; matters of special relevance that, due to their amount, risk, timing or special characteristics, are strategic for the Company and also the body responsible for monitoring the most important and relevant aspects of the activity, including significant matters decided on or simply examined by the Executive Committee, therefore ensuring that all members of the Board of Directors are aware of the measures adopted as a response to Board decisions and can monitor their implementation and effectiveness).

As provided for in the Portuguese Companies Code, the role of the Board of Directors is to manage the Company's business and affairs and decide on any matter relating to its management while abiding by the resolutions adopted by the General Meeting or the decisions made by the Audit Committee whenever required by law or the Articles of Association. As part of its management powers, it defines and ensures the implementation of mechanisms which, in turn, ensure that Corticeira Amorim will act in accordance with its objectives, executing the strategic plans and policies approved by the Board of Directors.

These duties include, among others:

• a. Choosing its chairperson;
• b. Co‑opting directors;
• c. Requesting the convening of general meetings;
• d. Preparing annual reports and financial statements;
• e. Acquisition, disposal and encumbrance of real estate assets;
• f. Providing bonds and personal or real guarantees by the Company;
• g. Opening or closing establishments or important component parts thereof;
• h. Significantly expanding or reducing the Company's activity;
• i. Making major changes in the Company's organisation;
• j. Establishing or terminating important and long‑lasting cooperation projects with other companies;
• k. Change of head office;
• l. Merging, de‑merging or changing the legal status of the Company;
• m. Deciding on any matters put forward at the request of any director for resolution of the Board of Directors.

The Company's Articles of Association1 give the Board of Directors the following powers: the exercise of all powers of direction, management, administration and representation of the Company and in particular:

• a. Move the location of the registered office of the Company to any other place permitted by law;
• b. Set up any branches, offices, affiliates, subsidiaries, agencies or representative offices of any kind anywhere in the Portuguese territory or abroad;
• c. Acquire, sell or pledge, in any manner, shares and debentures of its own stock belonging to the Company and any rights attached thereto as well as to carry out any transactions with such shares and debentures and upon such terms as the directors shall think fit;
• d. Acquire, sell, exchange and lease real estate for the purposes permitted by law, as well as encumber them;
• e. Exercise and promote the exercise of the rights of the Company in companies in which the Company has an interest;
• f. Acquire, sell, exchange, lease and pledge personal property, in any manner;
• g. Negotiate borrowings with financial institutions on the terms, conditions and forms which the Board of Directors shall think fit;
• h. Operate bank accounts, deposit and draw monies, make, accept, sign and endorse cheques, negotiable invoices, bills of exchange, promissory notes and other negotiable instruments;
• i. Disclose, give up or come to terms in any proceedings or enter into arbitration;
• j. Exercise all other powers, authorities and discretions provided by law and these Articles of Association.

Under the terms of the Regulations of the Board of Directors of Corticeira Amorim, the Board of Directors is responsible for managing and representing Corticeira Amorim, under the terms envisaged in the applicable legal and statutory rules, with the responsibility to manage the Company's business and carry out all acts and operations relating to its purposes that are not the responsibility of the other corporate bodies. It is also responsible for establishing the strategic guidelines of the companies that are in a control or group relationship with it, in accordance with article 21 of the Portuguese Securities Code. This is done in compliance with the applicable legal provisions, particularly those relating to the business sectors in which each company in Corticeira Amorim operates. In the exercise of its powers, the Board of Directors is responsible for:

• a. Defining the strategy and approving the general policies of Corticeira Amorim, as well as the codes necessary for its good governance;
• b. Defining the organisational structure of the Company and Corticeira Amorim, namely the organisation by sub‑holdings of the various Business Units that comprise it;
• c. Giving instructions to the management of the Business Units, whenever it deems useful or necessary, namely within the scope of the matters listed herein;
• d. Approving the business plan and the annual or multi‑annual investment plan and monitoring its implementation;
• e. Approving the sale of assets and/or rights, investments and encumbrances to be made by the Company or Corticeira Amorim companies;
• f. Representing the Company in and out of court, in cases it has filed or it is defending, and it may waive, negotiate and admit guilt in any legal proceedings, as well as enter into arbitration agreements;
• g. Incorporating companies and to subscribe, acquire, encumber or dispose of shareholdings;
• h. Deciding to incur debt on the national or international financial market, including through the issue of bonds or any other securities;
• i. Deciding that the Company will provide technical and financial support to the companies in which it directly or indirectly owns shares, interests or other corporate holdings, namely by granting them loans and providing guarantees to their benefit;
• j. Proposing to the General Meeting the acquisition and sale of own shares, own bonds or other own securities, within the limits established by law;
• k. Approving the Company's internal control, risk management and internal audit systems;
• l. Deciding on the matters provided for in article 406 of the Portuguese Companies Code;
• m. Exercising any other powers that may be conferred upon it by law, by Corticeira Amorim's Articles of Association or by the General Meeting.

The Board of Directors may delegate the following powers2 to one or more of its members or to an Executive Committee, through a duly formal resolution:

• a. The implementation of the decisions made by the directors;
• b. The day‑to‑day management of the Company;
• c. The authority, power and discretion to implement certain management matters.

It is the Board of Directors' responsibility to set the limits of the delegation of powers mentioned in the previous paragraph as, well as determine the modus operandi of the Executive Committee.

The Board of Directors does not delegate powers as regards defining the Company's strategy and main policies; organising and coordinating the corporate structure; deciding on matters that, due to their value, risk, timing or special characteristics/ circumstances are considered strategic.

According to the law, the following powers are thus not subject to delegation in the Executive Committee:

• a. Choosing the Chair of the Executive Committee (Chief Executive Officer ‑ CEO);
• b. Co‑opting directors;
• c. Requesting the convening of General Meetings;
• d. Approving management reports and annual accounts;
• e. Providing bonds and personal or real guarantees by the Company;
• f. Changing the registered office and capital increases, under the terms foreseen in the Company's Articles of Association;
• g. Merging, de‑merging or changing the legal status of the Company.

In addition to the matters provided for in the Portuguese Companies Code, the following are not considered to be powers of day‑to‑day management of the Company and are therefore not delegated in the Executive Committee:

• a. Approval of the annual investment/disinvestment plan of the Company and of the companies, directly or indirectly controlled, by the Company and amendments of an amount exceeding 10% of the overall value of the approved annual investment/ disinvestment plan;
• b. Acquisition, disposal or encumbrance of real estate assets of the Company and of the companies, directly or indirectly controlled by, the Company not related to the operational activities pursued by the companies directly or indirectly,

controlled by the Company;

• c. Incorporation or taking an interest in, namely through the direct or indirect acquisition of shareholdings, of companies worth more than EUR 2,500,000.00 (two million and five hundred thousand euros);
• d. Approval and modification of the strategic plans and annual targets of Corticeira Amorim;
• e. Approval and modification of the main policies of Corticeira Amorim;
• f. Transactions of the Company, or of companies directly or indirectly controlled by the Company, with related entities or with any shareholders of the Company;
• g. Approval and modification of the organisational structure of Corticeira Amorim;
• h. Issue of bonds or other debt instruments of the Company;
• i. The companies controlled by the Company entering into subordination agreements and parity group agreements.

As far as increases in the share capital are concerned and in accordance with article 8 of the Company's Articles of Association the Board may, by a majority of two‑thirds of its members, increase the share capital, one or more times, in accordance with the law, up to EUR 200 million. It is the Board of Directors' responsibility to fix the terms and conditions for share capital increases as well as the share subscription period and payment procedures.

In the financial year under review, the Board of Directors has not decided to undertake any increase of the share capital of the Company.

1 The Company's Articles of Association provide that, by a majority of two‑thirds of its members, the Board of Directors may pass resolutions about capital increases, once or more times, in accordance with the law, up to EUR 200 million. It is also responsible for deciding on the respective terms, conditions method and length of the subscription and payment period.

This assignment of powers to the Board of Directors was given by the General Meeting of 23 April 2021, with the resolution to amend article 8, paragraph 1, of the Articles of Association; Article 8, paragraph 1 of the Memorandum of Association does not indicate the term for the exercise of the powers. Article 456, No. 2(b) of the Portuguese Companies Code states that the Articles of Association should establish the period, not exceeding five years, during which the powers may be exercised. It also states that in the absence of any indication, the period shall be five years; No. 4 of the same article 456 states that the General Meeting, deciding with the majority required for amendment the Articles of Association, may renew the powers of the Board of Directors. In 2023, no capital increases were issued under the powers granted to the Board of Directors in April 2021.

2 Regarding the current term of office (2021‑2023), the Board of Directors decided to delegate powers to an Executive Committee in accordance with its respective regulations available at (https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/).

10. Information on any significant business relationships between the holders of qualifying interests and the Company.

The Company did not conduct any business operation or deal with holders of qualifying interests or the entities with which they are in any relationship, in accordance with Article 29‑S (4) of the Portuguese Securities Code, outside normal market conditions. Any business that occurred fell under the current activity of the contracting parties. The procedures applicable to these transactions are described in sections 89 through 91 of this report.

Amorim Cork Insulation expanded cork blocks in the new auditorium at Herdade de Rio Frio.

B. CORPORATE BOARDS AND COMMITTEES

Corticeira Amorim is the holding company of an economic group based in Portugal, solidly established internationally, through subsidiaries, associate companies and joint ventures. The vast portfolio of products and solutions, it continually develops, responds to diverse markets and A consumers.

The governance of Corticeira Amorim addressing the challenges arising from this framework, advocates a Diversity Policy, particularly in the composition of its corporate bodies and specialised internal committees, in particular the Board of Directors and the Audit Committee, as a way to:

• Promote diversity in the composition of the respective body;
• Enhance the performance of each member and, jointly, of each body;
• Stimulate comprehensive, balanced and innovative analysis and, consequently, allow informed and agile decision‑making and control processes;
• Contribute to the increase of innovation and self‑renewal of the Company, for its sustainable development and creation of value for the shareholders and other stakeholders in the long term.

Corticeira Amorim believes that the diversity criteria, which seek to combine and integrate the specific and different attributes of each person in the Company, are in fact a catalyst for innovation and a driver for attracting talent. It also believes they make a decisive contribution to enriching the organisation and promoting working environments that are more flexible, creative and generate high performance.

The diversity of the characteristics of the members of the management and supervisory bodies and employees, particularly their age, gender, geographical origin, skills, allows Corticeira Amorim to obtain different perspectives on issues, as well as greater independence of opinions and to achieve more solid decision making. This enables the operational structures to enrich and improve knowledge, experience and the organisational culture.

Corticeira Amorim continually promotes diversity in its corporate bodies and other management bodies, particularly the Board of Directors and the Audit Committee, especially in the following areas:

Gender:

the integration into the teams of members of different genders brings together and ensures dialogue encompassing different styles of approach, reflection and action, promoting creativity and innovation;

Age:

the combination of members of different ages/generations allows us to combine the experience of some with the irreverent perspectives of others, younger persons, promoting debate, innovation and bolder, more solid and sustainable decisions;

Geographical origin:

the diversity of geographical and cultural origin favours the sharing of experiences, knowledge and perspectives of the challenges, particularly international ones, and a better understanding and positioning of the Organisation in the various markets;

Skills:

different academic backgrounds and professional experiences tend to develop different skills and styles of action, and that, together with diverse experiences, contribute to better and more information and help achieve better decisions and action;

Inclusion:

adopt measures that enable the integration of people with disabilities or special needs, promoting the adaptation of the respective jobs, whenever necessary.

Diversity Policy:

https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/

With regard to gender diversity on the Board of Directors and the Audit Committee, there is compliance with the policy, which is shown in section 19 (Board of Directors including the Audit Committee) of this report. It is to be noted, in particular, that the Board of Directors includes 40% of people of the under‑ ‑represented gender (female), and that the Audit Committee has an equal composition.

Neither Corticeira Amorim's governing bodies nor specialised committees used artificial intelligence mechanisms as a decision‑ ‑making support tool in the year under review.

I. GENERAL MEETING

The General Meeting is the main body of the Company, and its meetings form the main moment for shareholders to actively and personally participate in the life of the Company.

In addition to the law and the Articles of Association, the functioning of the General Meeting is governed by the respective Rules of Procedure, approved by the General Meeting and published on the Company's website: https://www.amorim.com/xms/files/ Investidores/Estatutos\Politicas\_Regulamentos/20220428\ Regulamento\_da\_Assembleia\_Geral\_EN.pdf

(a) Composition of the Presiding Board of the General Meeting

11. Details and position of the members of the Presiding Board of the General Meeting and respective term of office (beginning and end).

The Presiding Board of the General Meeting is composed of a chairperson and a secretary, posts occupied by:

Chairman: Paulo de Tarso da Cruz Domingues Secretary: Rui Paulo Cardinal Carvalho

Beginning of first term of office: 26 June 2020 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Professional qualifications and other relevant information of the curriculum of the members of the Board of the General Meeting:

Paulo de Tarso da Cruz Domingues (chairman)

Graduated from the Faculty of Law at the Portuguese Catholic University (Porto) in 1987; Master's in Law, from the Faculty of Law of the University of Coimbra, in the area of Corporate Legal Sciences, with the thesis On Corporate Capital ‑ Concept, Principles and Functions (1997); Doctorate in Law from the Faculty of Law of the University of Porto, in Civil Legal Sciences (in the area of Commercial Law), with the thesis Variations on Corporate Capital (2009). Associate Professor, with aggregation, at the Faculty of Law of the University of Porto, where he has been teaching Commercial Law since 1998; director and chairman of the Scientific Council at the University of Porto's Law Faculty since February 2019. Guest/visiting professor at several Portuguese and foreign universities. Participation in several lectures, conferences, seminars, post‑graduation courses and master's courses, mainly in the area of Company Law. Guiding and examining several Master's and PhD theses, in various faculties. Member of IDET ‑ Institute of Corporate and Labour Law, of the Faculty of Law of the University of Coimbra; member of CIJ – Interdisciplinary Centre for Research in Justice, of the Faculty of Law of the University of Porto; member of the editorial committee of the magazine Direito das Sociedades em Revista (Corporate Law in Review); member of the editorial committee of the magazine RED ‑ Revista Eletrónica de Direito (RED ‑ Electronic Journal of Law); member of the editorial committee of the magazine Revista de Direito Mercantil, Industrial, Econômico e Financeiro (RDM) (Journal of Commercial, Industrial, Economic and Financial Law), of USP, Brazil; member of the editorial committee of the magazine RJLB – Revista Jurídica Luso‑Brasileira (Luso‑Brazilian Legal Journal); member of the editorial committee of the magazine Revista de Direito do Desporto (Sports Law Journal); member of APA ‑ Portuguese Arbitration Association. He boasts more than 90 publications

and articles, especially on corporate law, including, among others, his collaboration on the manual Estudos de Direito das Sociedades (Studies on Company Law), by several authors (coordinated by Coutinho de Abreu ‑ 13th edition, Almedina, Coimbra, 2017), and the Código das Sociedades em Comentário (Companies Code in Commentary) (vols. I – VII, Almedina, 2010‑2017). Arbitrator and legal adviser. He is also currently Chair of the Board of the General Meeting of the following companies: Banco de Fomento Português, SA; Coimbra Aparthotel, S.A. Nationality: Portuguese · Gender: Male · Age: 59 · Independent

Rui Paulo Cardinal Carvalho (secretary)

Graduated in Law from the Faculty of Law of the University of Coimbra in 2015; Master's degree in Law from the Faculty of Law of the University of Coimbra, in the area of Legal and Business Sciences, in 2020; PhD student in Law at the Faculty of Law of the University of Coimbra, in the area of Legal and Business Sciences, from 2021 to the present day. He has worked with the Abreu Advogados law firm since 2017 and has been a Senior Associate since 2023. He has participated, as secretary, in various arbitration proceedings. He is also secretary of the Board of the General Meeting of several companies. Member of the Board of the Associação Direito das Sociedades em Revista (Association of Corporate Law in Review). Author of several articles, particularly on corporate law. Nationality: Portuguese · Gender: Male · Age: 30 · Independent

(b) Exercising the right to vote

12. Any restrictions on the right to vote, such as restrictions on voting rights subject to holding a number or percentage of shares, deadlines for exercising voting rights, or systems whereby the financial rights attaching to securities are separated from the holding of securities.

Each share qualifies for one vote. The total number of shares issued is 133 million. There are no shares with special plural voting rights.

There are no statutory guidelines providing for the existence of shares that do not carry voting rights or determining that voting rights exceeding a certain threshold shall not be counted if such votes are cast by only one shareholder or by a shareholder who is related to that shareholder. The Articles of Association do not envisage mechanisms that aim to cause a time lag between the entitlement to receive dividends or subscribe for new securities and the voting rights of each ordinary share.

All matters whose appraisal and/or decision is the responsibility of the Shareholders' General Meeting, pursuant to the law and the Company's Articles of Association, shall be submitted to the General Meeting in separate motions, which shall be considered and decided and/or voted upon one by one, separately, and the outcome of the voting on each item of the agenda shall be recorded in the minutes of the respective General Meeting. Those entitled to attend the General Meeting and discuss and vote on those who, on the record date, corresponding to 00:00 (GMT) on the fifth working day prior to the date of the Annual General Meeting, are registered as an owner of shares entitling them to at least one vote. In the event that the General Meeting is adjourned, the adjourned meeting shall be made up of members who provide evidence of holding shares in the Company, provided that the record date shall be observed.

The Articles of Association provide for the possibility of shareholders voting by mail, provided that the ballots reach the Company at least three business days before the General Meeting. Votes sent by mail are equivalent to negative votes for proposals submitted after the date on which such votes were cast. The presence of the shareholder at the General Meeting revokes the vote it may have sent by mail.

Corticeira Amorim's Articles of Association allow electronic voting, provided that there are adequate technical resources available to enable checking the validity of electronic votes and ensuring their data integrity and confidentiality. Votes sent by electronic means must be received by the Company by the third business day prior to the General Meeting. The chairperson of the General Meeting must check prior to the convening of the General Meeting, the existence of technical means and communication to ensure the safety and reliability of the votes cast. If the Chair of the Presiding Board of the General Meeting decides that the technical requirements for voting by electronic means are met, such information shall be included in the Notice calling the meeting. Such requirements were not met in 2023. The presence of the shareholder at the General Meeting revokes the vote it may have sent by mail or by electronic means.

Postal ballot forms are available from Corticeira Amorim's registered office (Rua Comendador Américo Ferreira Amorim, no. 380 – 4535‑186 Mozelos ‑ Portugal) and from the Company's website (www.corticeiraamorim.com). At the request of a shareholder, such postal ballot forms may be provided by e‑mail.

13. Details of the maximum percentage of voting rights that may be exercised by a single shareholder or by shareholders that are in any relationship as set out in Article 20/1.

The Articles of Association do not provide for any limit on the number of votes, that each shareholder (either separately or jointly with other shareholders) is entitled to cast or exercise.

14. Details of shareholders' resolutions that, imposed by the Articles of Association, may only be taken with a qualified majority, in addition to those legally provided, and details of said majority.

The Company's Articles of Association establish specific requirements for convening/decision‑making quorums, for the following situations:

• a. Identical to those of general law:
  • Removal from office of a director elected under the special rules set out in article 392 of the Portuguese Companies Code – the removal from office will not become effective if shareholders accounting for at least 20% of the share capital have voted against the removal of such director, irrespective of the just cause invoked for such removal from office;
• b. Higher that those of general law:
• Restriction or withdrawal of pre‑emption rights in share capital increases – the Company's Articles of Association require that the Annual General Meeting be attended by shareholders accounting for at least 50% of the paid‑up share capital;
• Exercising the right to vote need to own at least one share of the Company's stock at least five business days prior to the date scheduled for holding the General Meeting;
• In order that a General Meeting requisitioned by shareholders may pass resolutions – it is required that the General Meeting be attended by shareholders owning shares representing at least the minimum amount of share capital required by law to legitimise the reason for calling such meeting;
• Change in Board composition such resolution requires the approval of shareholders who represent not less than 2/3 of the total share capital;
• Winding‑up the Company such resolution requires the approval of shareholders representing at least 85% of the paid‑up share capital.

II. MANAGEMENT AND SUPERVISION

(a) Composition

15. Details of corporate governance model adopted.

The Company adopts the Anglo‑Saxon governance model, with an extended Board of Directors, including an Audit Committee, in the current term of office fully composed of independent members, and with a dual supervision, by the Audit Committee (fiscalisation/ supervision) and by the Statutory Auditor (financial supervision).

In the Board of Directors' opinion, this new model when fully implemented, contributes effectively to:

• Greater agility, greater proximity and better monitoring, and therefore also greater efficacy and efficiency for the Company, and in carrying out the internal management and supervision of this, due to including the Audit Committee within the Board of Directors;
• Greater diversity (academic background, skills, gender, age, professional experiences) on the Board of Directors and, above all, independent visions with the ability to consider the business from new perspectives, thereby adding value and sustainability to Corticeira Amorim.

Additionally, specialised internal committees are also in place, chaired by independent directors and mainly composed of members of Company management bodies, with corporate functions: the Risk Committee and the ESG (Environmental, Social & Governance) Committee. The Shareholders' General Meeting held on 28 April 2023 decided to set up the Appointments, Evaluation and Remuneration Committee, pursuant to Article 399(1) of the Portuguese Companies Code and Article 19(4) of the Company's Articles of Association, and to elect the respective members. The internal committee specialising in the same matters ceased to exist on that date.

The Board of Directors believes that the adoption of this governance model at Corticeira Amorim will boost its long‑term growth and profitability, in harmony and along with the long‑term interests of all its stakeholders.

As a consequence, the Board of Directors is confident that the corporate governance model adopted is suitable for the specific circumstances of Corticeira Amorim for the following reasons:

• It embodies a framework of principles of corporate governance and good practices designed to promote greater transparency and a high level of professionalism and competence;
• It promotes independence and diversity in the composition of its governing bodies, enhancing the performance of each member and, as a whole, of each body;
• It provides reasoned and agile decision and control processes;
• It encourages shareholder participation in the life of the Company;
• It fosters the efficiency and competitiveness of Corticeira Amorim;
• Contributes to the increase of innovation and self‑renewal of the Company, for its sustainable development and creation of value for the shareholders and other stakeholders, in the long term.

Corticeira Amorim promotes internal reflection on the corporate governance structures and practices adopted. It has compared their degree of efficiency with the possible added value of implementing other practices and/or measures recommended by both the 2018 Corporate Governance Code, revised in 2023, of the Portuguese Institute of Corporate Governance, which it takes as a reference, and those recommended by other organisations.

This matter – as well as Corticeira Amorim's organisational development issues – has been reviewed by the Executive Committee. The reflection on the corporate structure itself is carried out both by the Executive Committee and by the Board of Directors which is advised on this matter by the ESG Committee.

16. Articles of association rules on the procedural and material requirements governing the appointment and replacement of members of the Board of Directors, the Executive Board and the General and Supervisory Board, where applicable.

The rules governing the appointment and replacement of members to the board of directors are those provided for in law, in addition to a number of specific features set out in the Company's Articles of Association:

The election of members to the board shall be done on the basis of lists specifying the office to be filled by each Director. The voting shall be carried out in the following manner:

First: one Director shall be elected separately from among the people proposed on the lists subscribed by the groups of shareholders who own between 10% and 20% of the share capital. Each list must propose, at least, two eligible persons for each office to be filled, but the same shareholder may not subscribe to more than one list. If, on a first poll, there are lists submitted by more than one group of shareholders, then a poll shall be first taken among all such lists and, thereafter, among the names of the candidates listed in the winning list. The lists of candidates may be submitted to the General Meeting before the business on the agenda relating to the election of Directors starts to be discussed;

Second: the General Meeting shall elect the remaining directors. All shareholders present may take part in the respective resolution, regardless of whether or not they signed or voted on any of the lists of the first phase. The General Meeting cannot elect the remaining Directors until it has elected one of the nominees on the lists of the first phase, unless no list has been proposed.

The term of office of the Board members is three calendar years. At the end of the Directors' term, the shareholders must elect new directors or re‑elect ‑ one or more times ‑ current Directors.

At the time of voting the management report, the annual financial statements and the proposal for appropriation of profit, the Annual General Meeting may decide to remove any or all directors from the Board. This will not imply the payment of any compensation to any Director so removed from office regardless of whether a Director's discharge from employment has been for cause or without cause. However, this provision will not apply to a Board member elected under special election procedures on a first poll if members holding at least a 20% stake in the share capital of the Company resolve against removing any such Director from office regardless of the cause for a Director's discharge from employment.

When a Director is declared to be definitively absent, and there are no substitutes, he/she shall be replaced by co‑option, unless the directors in office are not sufficient in number for the Board to function. If there is no co‑option within 60 days of the absence, the Audit Committee appoints a replacement. The co‑option and appointment by the Audit Committee shall be subject to ratification at the next General Meeting.

If a director elected under the special rules of the first stage is absent permanently, and there is no respective substitute, a new election shall be held, at which the special rules of the first phase apply, with necessary adaptation.

The appointment and replacement of members of the Board of Directors and of the Audit Committee also take into account the Policy of Promoting Diversity in the Company's Corporate Bodies (available at: https://www.amorim.com/en/investors/corporate‑ ‑governance/board‑members/), described in the comment to Recommendation II.2.1 of this report, with the aim of achieving the objectives referred to therein. The actual diversity of its composition (age, gender, qualifications and professional background) is detailed in section 19 of this report.

17. Composition of the Board of Directors, with details of the Articles of Association's minimum and maximum number of members, duration of term of office, number of effective members, date when first appointed and end of the term of office of each member.

According to the Articles of Association, the Company is administered by a Board of Directors (which includes an Audit Committee), composed of a chairperson, a vice‑chairperson and one to nine other members. In the current term (2021‑2023), the Board of Directors consists of a chairperson, a vice‑chairperson and eight members, all incumbent members.

The duration of the term of office of the Board of Directors is three calendar years3 .

Board of Directors Composition (ten effective members):

Chairman: António Rios de Amorim

Date of first appointment to the Board of Directors: 29 March 1990 First appointment as chairman of the Board of Directors: 31 March 2001 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Vice‑Chairman: Nuno Filipe Vilela Barroca de Oliveira

Date of first appointment to the Board of Directors: 28 March 2003 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: Fernando José de Araújo

dos Santos Almeida Date of first appointment to the Board of Directors:

31 July 2009 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: Cristina Rios de Amorim Baptista

Date of first appointment to the Board of Directors: 20 July 2012 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: Luisa Alexandra Ramos Amorim

Date of first appointment to the Board of Directors: 28 March 2003 Elected as member of the Board of Directors at the General Meeting of Shareholders of 4 April 2013. End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: Juan Ginesta Viñas

Date of first appointment to the Board of Directors: 20 July 2012 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: José Pereira Alves

Date of first appointment to the Board of Directors: 23 April 2021 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: Marta Parreira Coelho Pinto Ribeiro

Date of first appointment to the Board of Directors: 23 April 2021 End of current term of office (2021‑2023): 31 December 2023, remaining in office until

a new election pursuant to law.

Board member: Maria Cristina Galhardo Vilão

Date of first appointment to the Board of Directors: 23 April 2021 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

Board member: António Manuel Mónica Lopes de Seabra

Date of first appointment to the Board of Directors: 23 April 2021 End of current term of office (2021‑2023): 31 December 2023, remaining in office until a new election pursuant to law.

³ At the time of voting the management report, the annual financial statements and the proposal for appropriation of profit, the annual General Meeting may decide to remove any or all directors from the Board. This will not imply the payment of any compensation to any Director so removed from office regardless of whether a Director's discharge from employment has been for cause or without cause. However, this provision will not apply to a Board member elected under special election procedures on a first poll if members holding at least a 20% stake in the share capital of the Company resolve against removing any such Director from office regardless of the cause for a Director's discharge from employment.

18. Distinction to be drawn between executive and non‑executive directors and, as regards non‑executive members, details of members that may be considered independent.

Considering the composition of Corticeira Amorim's Board of Directors, mentioned in the preceding paragraph, this body delegated the executive management to an Executive Committee composed of four members:

Executive members:

Chairman:	António Rios de Amorim
Vice‑Chairman:	Nuno Filipe Vilela Barroca de Oliveira
Board member:	Fernando José de Araújo dos Santos Almeida
Board member:	Cristina Rios de Amorim Baptista

Non‑executive members:

Board member:	Luisa Alexandra Ramos Amorim
Board member:	Juan Ginesta Viñas
Board member:	José Pereira Alves (Independent Lead Director)
Board member:	Marta Parreira Coelho Pinto Ribeiro
	(Independent)
Board member:	Maria Cristina Galhardo Vilão (Independent)
Board member:	António Manuel Mónica Lopes de Seabra
	(Independent)

The Board of Directors considers that this delegation of powers is in the interests of the Company, in particular the agility of its decision‑making, maintaining a number of non‑executive members (six, representing 60% of the Board of Directors) and independent members (four, representing 40% of the Board of Directors and 66.7% of the non‑executive members) that, it considers appropriate for the functions they undertake and the size of the Company.

The size, expertise, and diversity of the Board of Directors, combined with the availability of all the members, which is also reflected in attendance (sections 23 and 29), are appropriate to the size of the Company and the complexity of the challenges and of the risks inherent to its activity, ensuring the full, efficient and diligent exercise of the duties entrusted to this body and to each of its members, whether executive or non‑executive.

19. Professional qualifications and other relevant curricular information of each member of the Board of Directors.

António Rios de Amorim Chairman of the Board of Directors and of the Executive Committee

Chairman of the Board and CEO of Corticeira Amorim since March 2001. Degree in Commerce from the Faculty of Commerce and Social Sciences at the University of Birmingham (1989) and, in addition, attendance at: Executive MBA ‑ Columbia University (1992), International Business Management ‑ INSEAD (2001) and Executive Program in Strategy and Organization ‑ Stanford University (2007). He was CEO of Amorim & Irmãos (1996‑2001), Director of Sociedade Figueira‑Praia (1993‑2006), operational manager at Amorim ‑ Empreendimentos Imobiliários, promoter of the Lisbon Towers and Arrábida Shopping projects (1993‑1995), and Executive Director of Amorim Hotéis, SA, in charge of the development of the Ibis and Novotel chains in Portugal. He was a member of the European Round Table of Industrialists ‑ the only

Portuguese corporate group to belong to this association (1991‑ ‑1995). He was also chairman of the Portuguese Cork Association (2002‑2012) and the Confédération Européenne du Liège (since 2003). In February 2006, he was awarded the commendation of Grand Officer of the Order of Agricultural, Commercial and Industrial Merit by the Portuguese President. In 2018, he was distinguished by EY as Entrepreneur of the Year ‑ Portugal. He is a member of advisory bodies for business associations and knowledge centres: COTEC Portugal (Executive Board); Industry Training Association (ATEC) (Advisory Board); Faculty of Economics and Management at the Portuguese Catholic University (Advisory Board); the University of Minho's Institute of Science and Innovation for Bio‑Sustainability (IB‑S) (Strategic Board), and the Portuguese Family Business Association (vice‑ ‑chairman of the Senior Board). He is also a member, representing Corticeira Amorim, of the Business Roundtable Portugal Association. Since 2014 he has been Honorary Consul of the Republic of Bulgaria in Santa Maria da Feira, with jurisdiction in the districts of Porto, Aveiro and Braga. Nationality: Portuguese · Gender: Male · Age: 56

Nuno Filipe Vilela Barroca de Oliveira Vice‑Chairman of the Board of Directors and member of the Executive Committee

Graduate in Business Administration from the Portuguese Catholic University. He has professional experience in the areas of insurance (Ocidental Seguros, 1993), assets investment (Merril Lynch, 1995) and private banking (Banco Comercial Português, 1996), specialising in Financial Analysis and Private Investment. He served as a non‑executive director of Corticeira Amorim, from March 2003 to September 2005; he then proceeded to carry out executive functions from that date and is currently vice‑ ‑chairperson of the Board of Directors. Non‑executive director of various companies in the Amorim Group (since 2000). Former executive director of Barrancarnes (2000‑2005). He is the Honorary Consul of Norway in Porto. Nationality: Portuguese · Gender: Male · Age: 53

Fernando José de Araújo dos Santos Almeida Member of the Board of Directors, of the Executive Committee and of the Risk Committee

Member of the Board of Directors and member of the Executive Committee Graduated with a Bachelor's Degree in Economics from the University of Porto, Faculty of Economics (1983‑1984). Professional specialisation and complementary training in the areas of Balanced Scorecard, Strategic Management, Management Control, Performance Evaluation and Decision Support Systems. He joined Corticeira Amorim in 1991 and held various positions in several of the Group's member companies. In 2002, he took over as Manager of Organisational Development and Business Management Planning and Control at Corticeira Amorim and, in 2010, took responsibility for the Information Systems and Technology area, with an emphasis on digital innovation, as a driver of innovation, support for business strategy and risk management, in particular cybersecurity and business continuity. He has been a Corticeira Amorim director since 2009. Lecturer at Porto Business School in the areas of Strategy Development and Management Control.

Nationality: Portuguese · Gender: Male · Age: 62

Cristina Rios de Amorim Baptista Member of the Board of Directors, of the Executive Committee and of the ESG Committee

She graduated in Economics from the Faculty of Economics of the University of Porto, in 1991. She completed an MBA in International Banking and Finance from, the University of Birmingham (UK), in 1992. In 2001, she took a postgraduate degree in International Management at the Universidade Católica Portuguesa. She began her professional career in 1992, in the financial sector. In 1992, she joined S.G. Warburg España (Madrid), in the Corporate Finance area. In 1993, she joined N.M. Rothschild & Sons Limited (Corporate Finance) and Rothschild Asset Management Limited (Asset Management), both in London, and Soserfin, S.A. (Management of Economic Studies and Research) in 1994. She was a member of the Board of Directors of Fundação Casa da Música (2006‑2013) and of Fundação AEP (2009‑2013). She joined the Amorim Group and its various business areas in 1994 and is currently chairwoman of the Board of Directors of Amorim – Investimentos e Participações, S.G.P.S., S.A. and CFO of the Group. In 1997 she took office as Investor Relations Officer at Corticeira Amorim, S.G.P.S., S.A. (a position she occupied until the end of 2017), having been named Best Investor Relations Officer at the 2016 IRG Awards (Deloitte). She has been a non‑executive independent member of the Board of Directors of Banco BPI, S.A. since 2017. She serves on the bank's Risk Committee (member from 2017‑2020, chairwoman since December 2020) and the Nomination, Evaluation and Remuneration Committee (member since December 2020). She is currently a member of the Board of Directors of AEM and a member of the Board of Directors of BCSD Portugal – Business Council for Sustainable Development. Nationality: Portuguese · Gender: Female · Age: 55

Luisa Alexandra Ramos Amorim Member of the Board of Directors

With a degree in Marketing from ISAG and Hospitality from EHTE and EHTP, completing several areas of training in Hospitality at the Centre International de Glion, in Marketing from UCI Communication – USA and Management at EGP Porto. Director of Amorim – Investimentos e Participações (since 2002) and of Amorim Negócios Internacionais (since 2016). She is the president and CEO of Quinta Nova ‑ Nossa Senhora do Carmo (since 2006) and Taboadella (since 2018), accumulating relevant know‑how of the wine sector, both national and international. Was the CEO of Natureza, S.G.P.S (2002‑2006), Director of Marketing for J.W. Burmester (2000‑2002) and Member of the Hospitality Management in Amorim Hotéis e Serviços and Sociedade Figueira Praia (1996‑1997), when she began her role with the Amorim Group. Worked in management consulting sector at Deloitte & Touche, Porto (1998‑2000). In addition to her business activity, she is also the founder and chairwoman of the Bagos d'Ouro Association (since 2010) and a member of the ACIBEV General Assembly (since 2023), having also served as a member of the ACIBEV Board of Directors (2020‑2023). She was a member of the Executive Board of the Universidade Nova de Lisboa (2018‑2022) and a member of the Board of Directors of the Fundação Museu do Douro (2006‑2011). She has been the Honorary Consul of Hungary in Porto since 2017.

Nationality: Portuguese · Gender: Female · Age: 50

Juan Ginesta Viñas Member of the Board of Directors

With a wide and extensive professional experience in managing businesses, he has played relevant roles in several international companies such as International Harvester Spain (sales manager), DEMAG EO (sales manager), Hunter Douglas (General Manager and the person responsible for the industrial firms located in Brazil, Argentina and Chile) and Torras Domenech (Managing Director and CEO). Since 1996 he has been executive director of Trefinos, S.L., a Spanish company that produces cork stoppers for some of the world's most prestigious winemaking regions. Nationality: Spanish | Gender: Male | Age: 81

José Pereira Alves:

Member of the Board of Directors, Lead Independent Director, Chairman of the Audit Committee and member of the Risk Committee

Graduated with a Bachelor's Degree in Economics from the University of Porto, Faculty of Economics. He began his career in 1984 as an audit technician with the international audit firm Coopers & Lybrand. In 1990, after a professional qualification examination, he became a Statutory Auditor. In 1993, he became a partner at the External Audit Firm Bernardes, Sismeiro & Associados, S.R.O.C. On 1 January 1994, he became a partner at PricewaterhouseCoopers (PwC), and for over 22 years was responsible for coordinating the audit and review work for various groups, including: Amorim, RAR, Salvador Caetano, Nors, Ibersol, TAP, CTT, Semapa and Jerónimo Martins, among others. Between 2001 and 2015, he was on many occasions a member of the Territory Leadership Team, PwC's executive management body in Portugal, and between 1 July 2011 and 30 June 2015 he led the firm in Portugal as Territory Senior Partner (chairman). On 30 June 2016 he ceased to be a partner at PwC Portugal. He is chairman of the Supervisory Board of Sierra IG, S.G.O.I.C., S.A., chairman of the Supervisory Board of The Fladgate Partnership, S.A., chairman of the Supervisory Board of Galp Energia, S.G.P.S., S.A. and chairman of the Supervisory Board of NOS, S.G.P.S., S.A. Nationality: Portuguese · Gender: Male · Age: 63 · Independent

Marta Parreira Coelho Pinto Ribeiro Member of the Board of Directors, member of the Audit Committee and Chairwoman of the ESG Committee

Marta graduated with a Bachelor's Degree in Economics and a Master's Degree in Industrial Economics from the University of Porto, Faculty of Economics and holds a PhD degree in Economics (specialisation in Behavioural Economics) from the London School of Economics and Political Science (LSE), 2004. Since 2004, she has been a staff member of LSE. From 2004 to 2014, she was responsible for the subject of Negotiation, turning it into a reference subject at LSE. She is an Associate Fellow at Said Business School, University of Oxford where, since 2017, she has been a staff member on the Trading course for executives where she teaches and coaches executives. She lectures on decision‑ ‑making, negotiation and persuasion to executives from the United Nations (World Food Programme) as well as other large reference organisations such as Equinor (a multinational company operating in the energy sector). Her main area of research is the study of over‑ ‑optimism and over‑confidence among economic agents and the implications of these deviations for economic decision‑making. Her research topics are central themes in the field of Behavioural Economics as evidenced by the reference to her work by the Nobel

Prize in Economics, Daniel Kahneman, in his book "Thinking Fast and Slow". In addition to her teaching and research roles, she plays an advisory role. Among other advisory roles, namely in the area of Negotiation, she participated in studies on price reform in the pharmaceutical industry in Portugal and studies on regional economic development.

Nationality: Portuguese · Gender: Female · Age: 54 · Independent

Maria Cristina Galhardo Vilão Member of the Board of Directors, member of the Audit Committee and Chairwoman of the Appointments, Evaluation and Remuneration Committee

She graduated in Law from the Faculty of Law of the University of Lisbon and has a Master's Degree (LL.M) from McGill University, Montreal, Canada. Her professional career has been focused on law practise, working in the areas of finance, capital markets and business consultancy, among other Law fields. After an initial period as legal and economic adviser to the Macau Government, which was followed by a Master's Degree from McGill University (Canada), she practised law at the law firm Barros, Sobral, G. Gomes & Associados, with offices in Portugal, Brazil and London, where she worked mainly in the capital markets, finance and corporate areas, with a strong international focus. She was temporarily seconded to Clifford Chance in London, where she gained first‑hand experience of working in a global law firm. In 1997 she joined Belarmino Martins & Associados, a correspondent firm of Price Waterhouse, which led to her joining Oliveira, Martins, Moura, Esteves & Associados, a member of Landwell, correspondent law firms of PricewaterhouseCoopers. During this period she came into close contact with auditors and clients in the financial and banking field, as well as in corporate consultancy. In 2000, together with Manuel Anselmo Torres, she founded the Galhardo Vilão Torres (GVT) law firm, which specialises in Tax, Financial and Corporate Law. Since then, she has worked as a partner at GVT, where she coordinates and assists clients in the technological, industrial, real estate, hotel and distribution sectors. She also provides advice to individual clients in specific cases, particularly involving property. Her work continues to be highly international, with her clients being, mainly, foreign or Portuguese and involved in multinational activities.

Nationality: Portuguese · Gender: Female · Age: 59 · Independent

António Manuel Mónica Lopes de Seabra Member of the Board of Directors, member of the Audit Committee and Chairman of the Risk Committee

Graduated with a Bachelor's Degree in Electrical Engineering from the Faculty of Engineering at the University of Porto in 1973 and completed postgraduate programmes in Management at INSEAD (France) in 1991, 2000 and 2015. His professional CV shows extensive experience in administration/executive management in the industry: he was Vice‑President of Continental Tires (The Americas), based in Fort Mill, S.C., USA, from 2015 to 2017, Executive Vice‑ ‑President of Continental AG at BU Tires APAC, based in Shanghai, China, from 2012 to 2015, and Chairman of the Board of Directors of Continental Mabor – Indústria de Pneus S.A., based in Lousado, Portugal, from 2000 to 2011. He was also the Manager of Continental Mexico, S.A. de C.V., with headquarters in San Luís Potosí, Mexico. From 2000 to 2011 he, was director of Continental Pneus (Portugal), chairman of the Board of Continental‑Lemmerz and chairman of the Board of the Portuguese Rubber Industry Association (APIB). He was the Portuguese representative at the Rubber Industry Liaison Office (BLIC)/European Tyre and Rubber Manufacturers Association (ETRMA) from 2000 to 2008. From 2006 to 2011 he was a member of the Advisory Board in Engineering and Management at the Instituto

Superior Técnico, and a Member of the Casa da Música Founders Council where, from 2008 to 2011 he was also a Member of the Board for the Foundation of the same name. From 1990 to 2000 he worked at Continental Mabor S.A., in successive roles as Supplies Director, Materials and Distribution Director and Operations and Logistics Director. He was the Supplies Director at Mabor – Manufatura Nacional de Borracha, S.A., from 1989 to 1980. From 1984 to 1987 and 1987 to 1989 he was on the staff of EDP E.P. where he worked as a Standardisation Engineer and a Standardisation and Network Planning Adviser. From 1997 to 1989, he was Director of the Planning, Design and Construction Division of the Macau Utility Company (CEM) LV/MV/HV Network. He was a lecturer at the Instituto Superior Técnico (Lisbon) and simultaneously a member of the research team at the National Institute for Scientific Research (INIC) from 1976 to 1979. He began his career as a project and construction engineer for MV and LV electrical networks at the Federation of Ribatejo Municipalities (Santarém), in 1973 and 1974. Nationality: Portuguese | Gender: Male | Age: 72 years | Independent

In 2023, training was designed and made available to members of the Board of Directors, Audit Committee and Internal Committees on:

• Challenges and opportunities related to ESG topics: CSRD, ESRS, climate risks and dual materiality, value chain and sustainability due diligence, biodiversity;
• Cybersecurity.

20. Customary and meaningful family, professional or business relationships of members of the Board of Directors, with shareholders that are assigned qualifying holdings that are greater than 2% of the voting rights.

Companies holding or to which qualifying holdings exceeding 2% of the voting rights of Corticeira Amorim are attributable, which have directors of Corticeira Amorim on their Board of Directors:

• António Rios de Amorim, Nuno Filipe Vilela Barroca de Oliveira, Cristina Rios de Amorim Baptista and Luisa Alexandra Ramos Amorim are members of the Board of Directors of Amorim Investimentos e Participações, S.G.P.S., S.A.;
• António Rios de Amorim and Cristina Rios de Amorim Baptista are members of the Board of Directors of Amorim – Sociedade Gestora de Participações Sociais, S.A.;
• Luisa Alexandra Ramos Amorim is the chairwoman of the Board of Directors of Vintage Prime – S.G.P.S., S.A. and member of the Board of Directors of A Porta da Lua, S.A.;
• Nuno Filipe Vilela Barroca de Oliveira is member of the Board of Directors of API – Amorim Participações Internacionais, S.A.

Maria Fernanda Oliveira Ramos Amorim is Luisa Alexandra Ramos Amorim's mother, and Nuno Filipe Vilela Barroca de Oliveira's mother‑in‑law.

António Ferreira de Amorim is the father of António Rios de Amorim and Cristina Rios de Amorim Baptista.

There are no customary and meaningful commercial relations between the members of the Board of Directors and shareholders to whom a qualifying interest is imputed.

In accordance with the Rules of procedure of the Board of Directors, its members must:

• Punctually inform the chairperson of any facts that may constitute or give rise to a conflict between their interests and the interests of Corticeira Amorim;
• Promptly inform their chairperson of any and all circumstances, changes and/or transactions that may in any way create doubt as to a potential conflict or that, in general, may conflict with their duties to Corticeira Amorim;
• In the event of a conflict of interest, the member of the Board of Directors in question may not interfere in the respective decision‑making process, without prejudice to the duty to provide any information and clarifications requested.

21. Organisational charts or flowcharts concerning the allocation of powers between the various corporate boards, committees and/or departments within the Company, including information on delegating powers, particularly as regards the delegation of the Company's daily management.

Corticeira Amorim's Articles of Association provide for the following bodies, which are currently in office:

Presiding Board of the General Meeting

Composition and term of office as described in section 11 herein.

The chairperson of the Presiding Board of the General Meeting is responsible for:

• Calling the General Meetings ‑ preparing the notice and fostering its publication;
• Receiving requests for the inclusion of items on the agenda and, in the event they are approved, publish the matters included on the agenda in the same manner used for the notice;
• In the case of virtual general meetings (cyber‑meetings, online meetings and meetings by conference call), ensuring the authenticity and security of communications;
• Choosing the location for the General Meeting within the national territory, provided that the head office does not allow the meeting to be held on satisfactory terms;
• Chairing the General Meeting, direct and guide the work, in particular: check those attending and the quorum; organise the attendance list; call the meeting to order; allow, limit or deny the floor to speak; present postal votes; calculate total votes and announce the results;
• Authorising the presence, in the General Meeting, of third parties from outside the Company; the General Meeting may revoke this authorisation;
• Adjourning the General Meeting, immediately setting its restart date at no more than 90 days; the same session cannot be suspended twice;
• Ending the session, ensuring the minutes are drafted and signing them.

The secretary of the Presiding Board of the General Meeting is responsible for:

• Assisting the chairperson of the Presiding Board in conducting the work, including checking attendance and quorum, as well as organising the attendance list;
• Reading the agenda stated on the notice, and the documents referred to the Presiding Board during the session;
• Taking notes for drawing up the minutes;
• Counting the votes;
• Drawing up the minutes and signing them.

Board of Directors4

Composition and term of office as described in section 17 of this report; duties as described in section 9 of this report.

Executive Committee

Composition and term of office as described in section 28 of this report; duties as described in section 29 of this report.

Audit Committee

Composition and term of office as described in section 31 of this report; duties as described in sections 37 and 38 of this report.

Statutory Auditor

Composition, term of office and duties as described in section 39 of this report.

4 The Company's Articles of Association provide for the possibility of the Board of Directors being advised by one to three advisors, to be appointed by it from among persons of recognised merit and experience, with terms of office coinciding with those of the Directors. The advisors to the Board of Directors are people who advise the Board of Directors about the various issues addressed at board meetings, but they don't have the right to vote on resolutions passed at meetings.

The Board of Directors, elected on 23 April 2021 for the 2021‑2023 term, did not appoint advisors to the Board of Directors.

Organisational Structure of the Company

As explained in detail in section 9, the role of the Board of Directors is to manage the Company's business and affairs and decide on any matter relating to its management while abiding by the resolutions adopted by the Annual General Meeting or the decisions made by the Audit Committee whenever required by law or the articles of association and is also supported by specialised internal committees set up with duties in specific areas: Risks and ESG. As provided for in law and the articles of association, the Board of Directors has delegated the day‑to‑day management to an Executive Committee, as described in sections 28 and 29 of this report.

The non‑executive members of the Board of Directors regularly attend the monthly meetings of the Board of Directors, which analyse and decide on the evolution of all non‑delegable matters and all issues whose relevance, materiality and / or criticality becomes pertinent to their inclusion in the agenda of the Board.

The meetings are organised by the Company Secretary, Pedro Jorge Ferreira de Magalhães, who is present at all meetings. Pedro Magalhães has a broad range of academic and professional qualifications5 , namely in the areas of ESG and Compliance, which add significant value in terms of supporting decision‑making by the management body.

The organisation of meetings allows all directors – both executive and non‑executive directors – to adequately prepare themselves in advance in order to participate fully in the meeting and to assess and devise measures to improve meeting productivity and organisation efficiency. The calendar of regular meetings is agreed upon at the beginning of every financial year, so all members are able to be present. Any director, including non‑executive directors, may request the inclusion of items/topics in the agenda to be considered by the directors, up to the second business day prior to any board meeting.

Whenever matters are examined and/or decided in which one or more members of the Board of Directors have particular interests which conflict with the interests of the Company, the member(s) in conflict shall inform the Board of this circumstance, providing all necessary information but abstaining from voting on such matters.

A reporting system between the Executive Committee and the Board of Directors has been implemented across the organisation with a view to ensuring alignment of their activities and that the directors are informed of the activities of the Executive Committee in a timely fashion. The Executive Committee provides in good time and an appropriate manner to the request, all information requested by other Board Members and which are necessary in accordance with their respective duties.

In the scope of its powers, the Board of Directors has timely access to all information, documents and employees, both from the Company and its main subsidiaries, with a view to monitoring the business, evaluating performance and development prospects, as well as seeking the full explanation of any matter that it deems pertinent. Thus, in addition to matters which by law or the Articles of Association fall to be considered exclusively by the Board of Directors, non‑executive directors are aware of and monitor:

• The progress of the operating activities and the main economic and financial key performance indicators of each Business Unit which forms part of Corticeira Amorim;
• Relevant consolidated financial information: financing, investment, equity to total assets ratio and off‑balance sheet liabilities;
• The business carried on by the various support divisions and their impact on the organisation;
• The progress in Research, Development and Innovation (RD+I) activities;
• The calendar of the major events of Corticeira Amorim and its Business Units. The Organisation is often represented by one or more non‑executive directors at international events, such as trade missions.

Corticeira Amorim's operating structure is divided into five Business Units

Adopting a management model based on a strategic‑operational holding concept, the Business Units are coordinated by the Executive Board of Corticeira Amorim.

Each Business Unit has a Board of Directors composed of non‑ ‑executive and executive members. This body is the authority responsible for deciding on all matters deemed relevant; and has an Executive Management, which is composed of highly qualified executives who have the adequate technical and professional competences to conduct the business and to manage the specific challenges of the business activity developed and foreseen. The executive management in the Business Units is exclusively the responsibility of independent professional managers, i.e. the chairperson of the Board of Directors does not conduct the executive management of the same, which is the responsibility of the CEO of that Business Unit. In the case of the Amorim Cork Business Unit, given the complexity of the business, there are two co‑CEOs.

The strategic alignment of the whole organisation is enhanced by the use of thebalanced scorecard method, both globally in Corticeira Amorim and individually in the Business Units. In this regard, Corticeira Amorim's Board of Directors is responsible for approving strategic initiatives and goals for the organisation as a whole and specifically for Corticeira Amorim.

The diagram below shows how the management structure of the business is currently organised:

The support divisions are responsible for monitoring and coordinating the operation of the Business Units and their functional areas, under the coordination of the members of the Executive Committee.

With the exception of the Internal Audit area, which reports functionally to the Audit Committee, the activities of the other support areas are periodically reported to the Executive Committee, with the activity monitored by an executive director, as shown in the map below.

At intervals deemed suitable/ appropriate, the director monitoring the relevant support division or the Executive Committee or even the Board of Directors may request a review – and they effectively do so – of the activity carried out by the different support divisions in order that the need or opportunity to create new positions or implement new strategies may be considered by the Board of Directors.

Monitoring and reporting on cross‑cutting and support divisions:

5 In addition to being Company Secretary and Compliance Officer, Pedro Magalhães is head of Corticeira Amorim's Legal Department. He has been registered as a lawyer with the Portuguese Bar Association since 1994, and is responsible for coordinating the legal area and providing legal advice in Corticeira Amorim's various Business Units, as well as in its cross‑cutting support divisions: finance, IT, communication, procurement and transport. He has a Bachelor's Degree in Law (1992, Portuguese Catholic University), a Master's in Law ‑ Legal‑Privatistic Sciences (2012, University of Porto, Faculty of Law) and a PhD in Law (2018, Faculty of Law of the University of Porto). He also completed a postgraduate course in Law Enforcement, Compliance and Corporate Responsibility (2022, Faculty of Law, University of Lisbon). He is a researcher at the CIJ – Interdisciplinary Centre for Research in Justice of the Faculty of Law of the University of Porto, a guest lecturer at the Faculty of Law of Lusófona University – Lisbon University Centre, an external reviewer for the magazine RED ‑ Revista Eletrónica de Direito (Electronic Journal of Law) of CIJ, and author of the book Governo Societário e a Sustentabilidade da Empresa – Stakeholders Model versus Shareholders Model (Corporate Governance and the Sustainability of the Company – Stakeholders Model versus Shareholders Model) (2019, Livraria Almedina). Included in Legal 500's General Counsel Powerlist Iberia: Portugal Teams since 2017. He also an associate of the Portuguese Institute of Corporate Governance (IPGC), founding member of the Common Home of Humanity and the Association for the Sustainability of the Planetary System (ZERO).

Audit Committee

• Internal Audit

© Pedro Sadio, 2023

Heritage House: a new museum to celebrate the legacy and future of cork.

(b) Functioning

22. Availability and place where rules on the functioning of the Board of Directors may be viewed.

The modus operandi of the Board of Directors of Corticeira Amorim scrupulously complies with all applicable rules of procedure regarding the Board of Directors, specifically those set out in the Portuguese Companies Code, in the Company's articles of association and in the regulations issued by the CMVM and in the Company's Code of Business Ethics and Professional Conduct.

The operating regulations are available at https://www.amorim. com/en/investors/corporate‑governance/corporate‑regulation‑ ‑and‑policies/.

23. The number of meetings held and the attendance report for each member of the Board of Directors, the General and Supervisory Board and the Executive Board, where applicable.

Pursuant to the Articles of Association, the Board of Directors shall meet when and where corporate interest requires. Ten meetings of the Board of Directors were held during 2023 (2022: ten meetings), and all the members of the Board in office attended (or were represented) at the meetings. Six directors were represented at these ten meetings (in accordance with the law, by other directors), so overall attendance was 94% and individual attendance was 100% for all directors except those who were represented (Marta Parreira Coelho Pinto Ribeiro:70%; Juan Ginesta Viñas: 80%; Maria Cristina Galhardo Vilão: 90%).

24. Details of competent corporate bodies undertaking the performance appraisal of executive directors.

Pursuant to the Articles of Association, the General Meeting, or a Committee it elects shall decide on the assessment of the performance of the directors, including executive directors.

The Shareholders' General Meeting of 28 April 2023 elected the Appointments, Evaluation and Remuneration Committee (composed entirely of independent members) with the powers referred to in this section. This committee advises on the identification and selection of potential candidates for members of the governing bodies and advises the Board of Directors on the evaluation of the overall performance of the Board of Directors itself.

25. Predefined criteria for assessing executive directors' performance.

Under the terms of the Remuneration Policy for the three‑year period 2022‑2024, approved at the General Meeting of 28 April 2023, following motion of the Board of Directors which submitted for shareholders' consideration the independent Remuneration Policy proposal drawn up by the Appointments, Evaluation and Remuneration Committee (section 69). According to that proposal, the remuneration of the Executive members of the Board of Directors should, whenever appropriate and feasible, consist of a fixed remuneration, to which a variable remuneration is added by way of a share in the company's profits, in the form of: (i) an annual bonus based on the performance of the Corticeira Amorim companies and (ii) a multi‑year bonus (period of three years) for achieving the Company's long‑term goals.

The award of the variable component of the remuneration is aimed at creating a competitive remuneration framework and implementing an incentive scheme, that ensures the alignment of the interests of executive directors with the interests of the Company and its stakeholders, within a perspective of medium and long‑term economic, social and environmental sustainability.

The actual amount of the variable pay shall always depend on the appraisal to be carried out every year by the Appointments, Evaluation and Remuneration Committee (made up entirely of independent members), on the performance of the members of the Board of Directors, verified by the following indicators:

• a. Annual variable remuneration (max. 0.5% of the net income for the reporting financial year):
  • Consolidated net income (80% of the amount to be awarded);
  • The degree of achievement of the targets relating to the Sustainability Index | ESG agreed for the same financial
  • year (% of electricity consumed from renewable or controlled or certified sources, gender equality, energy efficiency, training and positive evolution of productivity);
• b. Three‑yearly variable remuneration (max. 0.5% of consolidated net income over the three reporting financial years):
  • Growth in the average consolidated net income for the three‑year period compared to the previous three‑year period of at least 5%;
  • The degree of achievement of the targets relating to the Sustainability Index | ESG agreed for the three‑year period in question (reduction in the intensity of water consumption, increase in energy efficiency, energy consumed from controlled renewable sources, reduction in the weight of consumption of non‑renewable virgin materials, waste recovery rate, reduction in the frequency rate of occupational accidents, access to training, increase in the percentage of female employees and women in management positions, establishment and operation of specialised internal committees, level of participation in meetings of governing bodies and committees, level of participation in training programmes, digital transition).

Additional information: Remuneration Policy – 2022‑2024 three‑ ‑year period, available at https://www.amorim.com/en/investors/ corporate‑governance/corporate‑regulation‑and‑policies/.

26. The availability of each member of the Board of Directors, indicating the positions held simultaneously in other companies inside and outside the group, and other relevant activities undertaken by members of these Boards.

António Rios de Amorim (Chairman):

Company	Position Held
Corticeira Amorim
Amorim Agro-Florestal, S.A.	President of the Board of Directors
Amorim Bartop – Investimentos e Participações, S.A.	President of the Board of Directors
Amorim Champcork, S.A.	President of the Board of Directors
Amorim Cork Composites, S.A.	President of the Board of Directors
Amorim Cork Flooring, S.A.	President of the Board of Directors
Amorim Cork Insulation, S.A.	President of the Board of Directors
Amorim Cork Research, Lda.	Director
Amorim Cork Services, Lda.	Director
Amorim Cork, S.A.	President of the Board of Directors
Amorim Cork, S.G.P.S., S.A.	President of the Board of Directors
Amorim Cork IT, S.A.	President of the Board of Directors
Amorim Florestal España, S.L.	President of the Board of Directors
Amorim Florestal III, S.A.	President of the Board of Directors
Amorim Florestal, S.A.	President of the Board of Directors
Amorim Industrial Solutions – Imobiliária, S.A.	President of the Board of Directors
Amorim Top Series, S.A.	President of the Board of Directors
Amorim – Viagens e Turismo, Lda.	Director
Chapius, S.L.	President of the Board of Directors
Comatral – Compagnie Marrocaine de Transformation du Liège, S.A.	President of the Board of Directors and Chairman of the Presiding Board of the General Meeting
Compruss – Investimentos e Participações, Lda.	Director
Cosabe – Companhia Silco-Agrícola da Beira, S.A.	President of the Board of Directors
Dom Korkowy, Sp. Zo.o	Member of the Board of Directors
Elfverson – Investimentos e Participações, S.A.	President of the Board of Directors
ETS Christian Bourrassé, S.A.	Member of the Board of Directors
Francisco Oller, S.A.	Member of the Board of Directors
Ginpar, S.A.	President of the Board of Directors
Herdade de Rio Frio, S.A.	President of the Board of Directors
Korken Schiesser GmbH	President of the Board of Directors
Olimpíadas Barcelona 92, S.L.	President of the Board of Directors
SACI, S.r.l.	Advisor to the Board of Directors
SIBL – Société Industrielle Bois Liège, S.A.R.L.	Dierctor
Société Nouvelle des Bouchons Trescases, S.A.	Member of the Board of Directors
Vinolock, A.S.	Director
Other companies
Amorim – Investimentos e Participações, S.G.P.S., S.A.	Member of the Board of Directors
Amorim – Sociedade Gestora de Participações Sociais, S.A.	Member of the Board of Directors
Amorim Desenvolvimento – Investimentos e Serviços, S.A.	President of the Board of Directors
Amorim Global Investors, S.G.P.S., S.A.	President of the Board of Directors
Montinho das Ferrarias de Baixo – Sociedade Agroflorestal, S.A.	Sole Director
Montinho, S.G.P.S., S.A.	Sole Director
Pimpolho, S.G.P.S., S.A.	Sole Director
QM1609 – Investimentos Imobiliários, S.A.	Sole Director
Quinta do Monte 2020, S.G.P.S., S.A.	Sole Director
Quinta Nova de Nossa Senhora do Carmo, S.A.	Member of the Board of Directors
Taboadella, S.A.	Member of the Board of Directors
Other Institutions
Associação Business Round Table Portugal	Vice-Chairman of the Board
Associação das Empresas Familiares	Member of the Superior Council
COTEC Portugal	Chairman of the Board of Directors
IE University (Madrid)	Member of the Advisory Board
Rabobank España	Member of the Advisory Board
San Telmo Business School (Seville)	Member of the Consejo Asesor Internacional de Política de Empresa
Other positions:
Honorary Consul of the Republic of Bulgaria in Santa Maria da Feira, with jurisdiction in the districts of Porto, Aveiro and Braga

Nuno Filipe Vilela Barroca de Oliveira (Vice -Chairman):

Company	Position Held
Corticeira Amorim
Amorim Agro-Florestal, S.A.	Member of the Board of Directors
Amorim Cork Composites, S.A.	Member of the Board of Directors
Amorim Cork Flooring, S.A.	Member of the Board of Directors
Amorim Cork Insulation, S.A.	Member of the Board of Directors
Amorim Cork IT, S.A.	Member of the Board of Directors
Amorim Cork Ventures, Lda.	Director
Amorim Cork, S.A.	Vice-Chairman of the Board of Directors
Amorim Cork, S.G.P.S., S.A.	Member of the Board of Directors
Amorim Florestal III, S.A.	Member of the Board of Directors
Amorim Florestal, S.A.	Member of the Board of Directors
Corecochic – Corking Shoes Investments, Lda.	Director
Cosabe – Companhia Silvo-Agrícola da Beira, S.A.	Member of the Board of Directors
Ecochic Portuguesas – Footwear and Fashion Products, Lda.	Director
Herdade de Rio Frio, S.A.	Vice-Chairman of the Board of Directors
Other companies
Amaroka, Lda.	Director
Amorim – Investimentos e Participações, S.G.P.S., S.A.	Member of the Board of Directors
API – Amorim Participações Internacionais, S.G.P.S., S.A.	Member of the Board of Directors
ARESPT Real Estate, S.A.	Member of the Board of Directors
Atitlan Real Estates Porto Imóveis, S.A.	Member of the Board of Directors
GRENTS, Lda.	Director
Casa das Heras – Empreendimentos Turísticos, S.A.	Member of the Board of Directors
Imobis – Empreendimentos Imobiliários Amorim, S.A.	Member of the Board of Directors
Mosteiro de Grijó – Empreendimentos Turísticos e Imobiliários, S.A.	Member of the Board of Directors
Paisagem de Alqueva, S.A.	Member of the Board of Directors
Quinta Nova de Nossa Senhora do Carmo, S.A.	Member of the Board of Directors
Sombraliciante – Unipessoal, Lda.	Director
Taboadella, S.A.	Member of the Board of Directors
Other positions
Honorary Consul of Norway in Porto

Fernando José de Araújo dos Santos Almeida (Board member):

Position Held
Manager
Member of the Board of Directors
Member of the Board of Directors
Manager
President of the Board of Directors

Cristina Rios de Amorim Baptista (Board member):

Company	Position Held
Other companies
Amorim – Investimentos e Participações, S.G.P.S., S.A.	Non-executive President of the Board of Directors
Amorim – Sociedade Gestora de Participações Sociais, S.A.	Non-executive Member of the Board of Directors
Banco BPI, S.A.	Non-executive Member of the Board of Directors
Other institutions
BCSD Portugal – BCSD – Business Council for Sustainable Development	Member of the Management
AEM – Portuguese Association of Securities Issuers	Member of the Board, representing Corticeira Amorim, S.G.P.S., S.A.

Luisa Alexandra Ramos Amorim (Board member):

Company	Position Held
Corticeira Amorim
Amorim – Viagens e Turismo, Lda.	Director
Other companies
A Porta da Lua, S.A.	Member of the Board of Directors
Amorim – Investimentos e Participações, S.G.P.S., S.A.	Member of the Board of Directors
Amorim Desenvolvimento – Investimentos e Serviços, S.A.	Member of the Board of Directors
Amorim Global Investors, S.G.P.S., S.A.	Member of the Board of Directors
Amorim Negócios Internacionais, S.A.	President of the Board of Directors
Amorim Negócios II, S.G.P.S., S.A.	President of the Board of Directors
Bucozal – Investimentos Imobiliários e Turísticos, Lda.	Director
Dreaming Fix, Lda.	Director
Época Global, S.G.P.S., S.A.	President of the Board of Directors
Folha da Fonte – Agropecuária, Lda.	Director
Herdade Aldeia de Cima do Mendro – Sociedade Comercial, Agrícola e Turística, Lda.	Director
LUYNES – Investimentos, S.A.	President of the Board of Directors
Mercado Prime – S.G.P.S., S.A.	President of the Board of Directors
Mercado Urbano – Gestão de Imobiliária, S.A.	President of the Board of Directors
Quinta Nova de Nossa Senhora do Carmo, S.A.	President of the Board of Directors
Vintage Prime, S.G.P.S., S.A.	Member of the Board of Directors
Taboadella, S.A.	President of the Board of Directors
Other institutions
Associação Bagos D'Ouro – a Private Institution of Social Solidarity (IPSS)	Chairwoman of the Board of Directors
Other positions
Honorary Consul of Hungary in Porto

Juan Ginesta Viñas (Board member):

Company	Position Held
Corticeira Amorim
Trefinos, S.A.	President of the Board of Directors
Other companies
Les Finques, S.A.	Sole Director

José Pereira Alves (Board member):

Company	Position Held
Other companies
Galp Energia, S.G.P.S., S.A.	Chairman of the Supervisory Board
NOS, S.G.P.S., S.A.	Chairman of the Supervisory Board
SIERRA IG, S.G.O.I.C., S.A.	Chairman of the Supervisory Board
The Fladgate Partnership, S.A.	Chairman of the Supervisory Board

Marta Parreira Coelho Pinto Ribeiro (Board member):

Does not hold any other positions in any other companies.

Maria Cristina Galhardo Vilão (Board member):

Company	Position Held
Other companies
Galhardo Vilão, Torres e Associados, Sociedade de Advogados, R.L.	Partner and Director
Hexagen, S.A.	Chairwoman of the Presiding Board of the General Meeting
Hotel Santa Marta, S.A.	Chairwoman of the Presiding Board of the General Meeting
Inspira Santos, S.A.	Chairwoman of the Presiding Board of the General Meeting
Investoc, S.G.P.S., S.A.	Chairwoman of the Presiding Board of the General Meeting
Osório de Castro – Investimentos Imobiliários, S.A.	Chairwoman of the Presiding Board of the General Meeting

António Manuel Mónica Lopes de Seabra (Board member):

Does not hold any position in any other company.

c) Committees within the Board of Directors

27. Details of the committees created within the Board of Directors, the General and Supervisory Board and the Executive Board, where applicable, and the place where the rules on the functioning thereof are available.

The Board of Directors delegated powers to an Executive Committee and established two specialised internal committees: Risk Committee and ESG Committee. The regulations of these committees are available at https://www.amorim.com/en/ investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/.

28. Composition of the Executive Committee.

The Executive Committee shall consist of four members, i.e., a chairperson and three members:

Chairman:	António Rios de Amorim
Member:	Nuno Filipe Vilela Barroca de Oliveira
Member:	Fernando José de Araújo dos Santos Almeida
Member:	Cristina Rios de Amorim Baptista

The term of office of the Executive Committee coincides with that of the Board of Directors.

29. Description of the powers of each of the committees established and a summary of activities undertaken in exercising said powers.

I. EXECUTIVE COMMITTEE

The Executive Committee exercises the powers delegated to it by the Board of Directors ‑ in the precise terms provided for in the articles of association and in law, as described in section 9 herein, with a view to streamlining management practices and making possible closer and continuous monitoring of the Company's different areas (management, operations and support) and its operating and business processes.

According to Corticeira Amorim's articles of association, the Executive Committee is vested with the power to implement the decisions made by the Board of Directors, manage the Company's ordinary course of business and implement certain management duties. The Board of Directors establishes, through its Internal Regulations (available at https://www.amorim.com/en/investors/ corporate‑governance/corporate‑regulation‑and‑policies/), the powers delegated to its Executive Committee:

• a. The implementation of the resolutions of the Board of Directors and the day‑to‑day management of the Company;
• b. To determine the composition of the boards of directors of the Company's sub‑holdings which shall necessarily include at least two members of the Executive Committee;
• c. Through the issuing of binding instructions, the day‑to‑ ‑day management of the companies, directly and indirectly, controlled by the Company, with the following limits:
  • The following powers, according to the law, are not subject to delegation in the Executive Committee:
    • i. Choosing the Chair of the Executive Committee (Chief Executive Officer ‑ CEO);
    • ii. Co‑opting directors;
    • iii. Requesting the convening of General Meetings;
    • iv. Approving management reports and annual accounts;
    • v. Providing bonds and personal or real guarantees by the Company;
    • vi. Changing the registered office and capital increases, under the terms foreseen in the Company's Articles of Association;
    • vii. Merging, de‑merging or changing the legal status of the Company.
• The following are not considered to be management powers of ordinary course of the Company, and are therefore not delegated to the Executive Committee:
  • i. Approval of the annual investment/disinvestment plan of the Company and of the companies, directly or indirectly controlled, by the Company and amendments of an amount exceeding 10% of the overall value of the approved annual investment/ disinvestment plan;
  • ii. Acquisition, disposal or encumbrance of real estate assets of the Company and of the companies, directly or indirectly controlled by, the Company not related to the operational activities pursued by the companies directly or indirectly, controlled by the Company;
  • iii. Incorporation or taking an interest in, namely through the direct or indirect acquisition of shareholdings, of companies worth more than EUR 2,500,000.00 (two million and five hundred thousand euros);
  • iv. Approval and modification of the strategic plans and annual targets of Corticeira Amorim;
  • v. Approval and modification of the main policies of Corticeira Amorim;
  • vi. Transactions of the Company, or of companies directly or indirectly controlled by the Company, with related entities or with any shareholders of the Company;
  • vii. Approval and modification of the organisational structure of Corticeira Amorim;
  • viii.Issue of bonds or other debt instruments of the Company;
  • ix. The companies controlled by the Company entering into subordination agreements and parity group agreements.

Whenever matters are examined and/or decided in which one or more members of the Executive Committee have particular interests which conflict with the interests of the Company, the member(s) in conflict shall inform the Committee of this circumstance, providing all necessary information but abstaining from voting on such matters.

In the scope of its powers, the Executive Committee has timely access to all information and employees, both from the Company and its main subsidiaries, with a view to monitoring the business, evaluating performance and development prospects. Accordingly, the Executive Committee receives notices, work orders and documentation to support all meetings in which it analyses and/or decides on the strategy, implementation and actions and evaluates the results of the various Business Units of Corticeira Amorim; it participates in the management meetings of these Business Units and has broad access to any documents or employees appropriate to the clarifications that it deems pertinent.

With a properly implemented reporting system within the Company, information flows from the members of the Executive Committee to the directors, thus ensuring that the performance of the members of both the Board and the Committee are aligned and that every director is informed of the work and activities of the Executive Committee in a timely manner.

The chairperson of the Executive Committee, who is also the chairperson of the Board of Directors, provides timely minutes of the Executive Committee meetings to the Audit Committee.

Summary of activity carried out in 2023

The activity of the Executive Committee was conducted in 2023 according to these duties, with the purpose of performing:

• The day‑to‑day management of the Company;
• The implementation of the decisions taken by the Board of Directors;
• In matters of sustainability: monitoring of the evolution of indicators and the degree to which targets have been achieved; assessment of initiatives and partnerships (Suber‑Protected Villages, Selective Collection Programme for used cork stoppers);
• The alignment of the activity of the various business units that constitute the Company, and analysis of the respective reporting;
• The budget estimates and setting goals and objectives;
• In terms of Human Resources: analysis of the evolution of indicators, training policy and priorities, definition of individual and team objectives, performance assessment, remuneration policy and reward grids; plans for the integration and development of new employees, in particular young managers; maintenance of succession plans for managers in key positions; actions aimed at diversity, equality and inclusion;
• Monitoring the evolution of critical business factors, definition and implementation of management measures concerning those factors (evolution of prices of main inputs, interest rates and exchange rates);
• Follow up and decisions on investment, loans and taking on liabilities;
• Policy definition and decision on priority action in the field of Research, Development and Innovation;
• Monitoring of risk management;
• Approval and implementation of cybersecurity incident response procedures and formalisation of the business continuity plan;
• Monitoring the Corticeira Amorim's share price: transactions, price development, analysts' estimates;
• The analysis and reflection on the corporate governance model and its suitability to the Company and respective goals;
• Analysis and monitoring of the evolution, formalisation, awareness and compliance of the policies and practices recommended by the Company's internal rules of procedure (codes, plans, regulations, policies and procedures);
• Monitoring the evolution of the ESG ratings attributed to the Company.

The Executive Committee met 17 times during 2023 (2022: 13), attendance was 100% (in overall and individual terms).

II. RISK COMMITTEE

The Risk Committee is a permanent and specialised internal Committee, whose mission is to advise the Board of Directors in the follow‑up and monitoring of risk management activities at Corticeira Amorim. The Risk Committee's duties relate to Corticeira Amorim and its various Business Units and encompass all subsidiaries in which it holds a controlling interest.

The Risk Committee is composed of five members, appointed by the Board of Directors of Corticeira Amorim, presided over by an independent director, and is composed, in the majority, of members of Company bodies. The position of Chair of the Risk Committee is necessarily attributed to a director that includes the Corticeira Amorim's Audit Committee.

Other persons may be asked to attend meetings on a permanent basis, at the request of the Risk Committee, but without having voting rights. Such persons shall be invited taking into account their specialised knowledge of the Risk Committee's area of intervention. The Risk Committee may also request that other persons, internal or external to Corticeira Amorim, may attend its specific meetings, due to the fact they have knowledge that may be relevant to the topics under discussion. The Risk Committee appoints a coordinator from among the Committee's members to act, whenever necessary, as liaison with the sub‑holdings that head the different Business Units, on matters attributed to the Risk Committee.

The Risk Committee may request from the Board of Directors, the Audit Committee, the Executive Committee or any other internal committee of the Board of Directors and support areas, as well as, through the designated coordinator, and from the boards of directors and executive managements of the sub‑holdingsheading the different business units, all the information, documentation and assistance necessary to exercise its powers.

The Risk Committee was designated by the Board of Directors on 3 May 2021 for the 2021‑2023 term of office, and is now comprised as follows:

Chairman:	António Manuel Mónica Lopes de Seabra
	(independent non‑executive director)
Member:	Fernando José de Araújo dos Santos Almeida
Member:	Cristina Rios de Amorim Baptista
Member:	José Pereira Alves *
Member:	Júlio César Martins Henriques

* Appointed on 4 May 2023 to replace Eugénio Luís Lopes Franco Ferreira.

Under the terms of , the respective regulations (available at https:// www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/), the Risk Committee has been attributed the following powers:

• a. Advise the Board of Directors on Corticeira Amorim's risk policy and, within that framework, on the appetite for general, current and future risks;
• b. Evaluate and monitor the main risks inherent to Corticeira Amorim's activity, as well as the level of exposure to risk and its potential development;
• c. Inform the Audit Committee of the risks to which Corticeira Amorim is subject and the effectiveness of the respective mitigation plans, promoting the recommendations and reports that the Board of Directors and/or the Audit Committee may request;
• d. Assist the Board of Directors in supervising the execution of the risk strategy;
• e. Discuss and issue the opinions and recommendations to the Board of Directors that it deems appropriate, on risk strategies at the aggregate level and by risk type;
• f. Propose the creation of mechanisms to ensure the implementation of processes, which promote compliance with the approved risk policies;
• g. Annually review risk policies and procedures and report the results of this review to the Board of Directors.

The duties of the Risk Committee also include assisting the Audit Committee in assessing the functioning of Corticeira Amorim's internal control model, including its risk management, compliance and internal audit functions.

Summary of activity carried out in 2023

This Committee met five times during 2023 (2022: five), with 100% attendance (both overall and individually), undertaking the following activities, having actively considered and collaborated on the following processes:

• Integrated risk management system: monitoring of risk management, analysing the structure of the Risk Management function, the risk catalogue and the tools used in order to simplify the catalogue and consequent alignment of the system for collecting and reporting information from the various Business Units through the monitoring dashboard;
• Monitoring of catalogue risks managed across the board, with the participation of those responsible for the management, monitoring and/or implementation of mitigation measures. Of particular note is the monitoring of risks: limited availability of raw materials (cork); disruption in the logistics chain; transport prices; cybersecurity (including the status of the implementation plan) and energy prices;
• Monitoring of catalogue risks managed by the Amorim Florestal Business Unit: the impact of climate change and the cork raw material risk, from Corticeira Amorim's perspective, referring to the evolution of these risks, the mitigation measures being implemented (namely the Forestry Intervention Project); and the risk of unavailability of manufacturing facilities, from the Business Unit's perspective, referring to the mitigation measures implemented (redundancies);
• Regular monitoring of the project aimed at formalising the Business Continuity Plan and implementing a Business Continuity Management System: plan, objectives, approach, procedures, implementation schedule and outputs (methodology and documentation). The project began with a pilot initiative. It aims to structure the recovery response for disruptive events;
• Analysis of the impact of the Russia/Ukraine armed conflict, the measures adopted by Corticeira Amorim and the estimated impact on business expectations in 2023 and beyond; • Assessment of the formalisation of various corporate policies whose aim is also to mitigate risks, namely the Suppliers' Code
  • of Conduct; the Anti‑Corruption Code of Conduct, which replaced the former Policy on Combating Corruption; the Risks of Corruption and Related Offences Prevention Plan

and its mid‑term assessment; and, with regard to the General Cybersecurity Policy, analysis of its adequacy in view of the integration of OSI into Corticeira Amorim's consolidation perimeter;

• Annual analysis of the adequacy of the risk catalogue, with the collaboration of the Executive Committee and those responsible for operational monitoring of the risks identified;
• Reporting and transparency: in this context, the Risk Committee (i) assessed the information on the topic of Risk, to be included in the consolidated accounts of Corticeira Amorim, for the year 2022, (ii) prepared the annual risk management report, for the year and (iii) carried out a self‑ ‑assessment of the Risk Committee;
• Regular monitoring and analysis of the dashboard for monitoring identified risks.

The chairperson of the Risk Committee regularly reports to the Board of Directors, which includes the Audit Committee, on the activities carried out by the Risk Committee.

III. ESG (ENVIRONMENTAL, SOCIAL & GOVERNANCE) COMMITTEE

The ESG (Environmental, Social & Governance) Committee is a specialised and permanent internal committee. Its mission is to advise the Board of Directors on the monitoring, supervision and strategic orientation of Corticeira Amorim in matters of corporate governance, social responsibility, the environment and ethics. The ESG Committee's duties relate to Corticeira Amorim and its various Business Units and encompass all subsidiaries in which it holds control.

The ESG Committee is composed of four members, appointed by the Board of Directors of Corticeira Amorim, presided over by an independent director, and composed, in the majority, of members of Company bodies. The position of Chair of the ESG Committee is necessarily attributed to a director of Corticeira Amorim's Audit Committee.

Other individuals may be asked to participate on a permanent basis, at the request of the ESG Committee, but without the right to vote, given their specialised knowledge of their area of intervention in the ESG Committee and it may also be possible to request the involvement of other members within or outside Corticeira Amorim, to participate in particular meetings of the ESG Committee. The ESG Committee may request from the Board of Directors, the Audit Committee, the Executive Committee or any other internal Committee of the Board of Directors, as well as from the Boards of Directors of the sub‑holdings heading the different Business Units, all the information, documentation and assistance necessary for the exercise of its powers.

The ESG Committee was appointed by the Board of Directors on 3 May 2021 for the 2021‑2023 term of office, and is now comprised as follows:

	Chairwoman: Marta Parreira Coelho Pinto Ribeiro
	(independent non‑executive director)
Member:	Cristina Rios de Amorim Baptista
Member:	Pedro Jorge Ferreira Magalhães
Member:	Ana Carla de Seixas Negrais de Matos

Under the terms of , the respective regulations (available at https:// www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/), the ESG Committee has been attributed the following powers:

In general

• a. Discuss and issue the opinions and recommendations to the Board of Directors that it deems appropriate on any ESG matter;
• b. Propose to the Board of Directors a Multi‑Year ESG Plan for Corticeira Amorim;
• c. Assess the consistency of ESG policies with applicable legislation and best practices, proposing changes whenever it deems appropriate;
• d. Review and issue an opinion to the Board of Directors on Corticeira Amorim's Annual Sustainability Report;

In matters of the environment

• e. Assess the environmental sustainability of Corticeira Amorim's business models;
• f. Develop and propose to the Board of Directors an environmental sustainability strategy cross‑cutting all Business Units, which is integral and consistent with Corticeira Amorim's global strategy;

In matters of social responsibility

• g. Give its opinion, at its initiative or at the request of the Board of Directors, on the policies of social solidarity, education, science, innovation and cultural sponsorship, implemented by Corticeira Amorim;
• h. Monitor and issue an opinion on the configuration of specific initiatives to be developed within the scope of the policies identified in the previous sub‑paragraph;
• i. Monitor and issue an opinion on the evolution of occupational health and safety indices, with special attention to accidents in Corticeira Amorim's industrial units;
• j. Monitor and issue an opinion on the promotion of training, equality and the well‑being of Corticeira Amorim's employees;

In matters of corporate governance

• k. Monitor, review and assess the suitability of Corticeira Amorim's governance model and its consistency with applicable legislation and best practices, proposing changes to the model whenever it deems appropriate;
• l. Monitor, review and assess the articulation between the governing bodies and the internal committees;
• m. Prepare and monitor decision‑making by the governing bodies and relevant committees in matters of ESG, namely those that may give rise to possible conflicts of interest;
• n. Monitor the supervisory actions conducted by the CMVM in relation to corporate governance matters;
• o. Make recommendations on the efficiency of the role of the non‑ ‑executive members of the Board of Directors;
• p. Review and propose to the Board of Directors Corticeira Amorim's Annual Corporate Governance Report;
• q. Monitor Corticeira Amorim's ratings in the various ESG rankings, as well as ratings with special relevance in corporate governance;

In matters of ethics

• r. Propose to the Board of Directors the measures it considers appropriate for the development of a culture of business ethics and professional deontology, within Corticeira Amorim, and its dissemination to all hierarchical levels of the companies belonging to its sphere;
• s. Assess and propose to the Board of Directors any changes and/or reviews to the internal code of business ethics and professional conduct;
• t. Advise the Audit Committee on procedures for reporting non‑compliance with the internal code of business ethics and professional conduct.

Summary of activity carried out in 2023

This Committee met four times throughout 2023 (2022: four), and overall individual attendance was 100%.

As part of its mission and the duties conferred upon it by the Board of Directors, the ESG Committee appraised and collaborated activity in the following processes, having analysed, appraised and, where appropriate, issued opinions and/or recommendations on:

• Sustainability: ES Plan 2021‑24: management and alignment (holding, BU, cross‑cutting divisions), and monitoring of the evolution of compliance with the targets established in social and environmental matters; analysis of external recommendations on reporting practices; updating of Corticeira Amorim's roadmap;
• ESG Ratings: monitoring of the rating given to Corticeira Amorim by the various ESG rating companies that analyse it; assessment of the practices recommended by these companies and whether they are suitable for Corticeira Amorim;
• Human Resources: monitoring of the main indicators, in particular the index for occupational accidents, equality and inclusion;
• Promotion of Equality and Inclusion: promotion of diversity, equality and inclusion: regular monitoring of the implementation of the Gender Equality Plan for 2023; analysis of progress, objectives, actions and targets for the 2024 Equality and Inclusion Plan;
• Investor Relations: analysis of activity for the year and the main ESG topics and trends in 2023;
• Corporate Governance: analysis of the degree of adoption of the recommendations contained in the Corporate Governance Code of the Portuguese Institute of Corporate Governance; analysis of international best practices and future developments:
• Ethics:
  • Review of the Code of Business Ethics and Professional Conduct which, among other changes, formalises the adjustment to the Mission (reference to Ethics), Vision (reference to the integration of Diversity) and Values (strengthening sustainability and social responsibility as regards employees and other stakeholders);
  • Review of the Anti‑corruption Code of Conduct, which replaces the former Policy on Combating Corruption; review of the Risks of Corruption and Related Offences Prevention Plan and the Suppliers' Code of Conduct;
  • Assessment of procedures for verifying compliance in human rights matters.
• Reporting and transparency: in this context, the ESG Committee (i) assessed the Corporate Governance Report and the Sustainability Report (which includes the Green Financing Allocation and Impact Report and the Taxonomy Report) which form part of Corticeira Amorim's consolidated financial statements for 2022, (ii) prepared the annual report on the ESG Committee's activities for 2022, and (iii) carried out a self‑assessment of the ESG Committee's.

The chairperson of the ESG Committee regularly reports to the Board of Directors, which includes the Audit Committee, on the activities carried out by the ESG Committee.

IV. APPOINTMENTS, EVALUATION AND REMUNERATION COMMITTEE

A permanent specialised internal committee called the Appointments, Evaluation and Remuneration Committee was in office until 28 April 2023. It had the mission of advising the Board of Directors (i) on the preparation of succession plans and profile recommendations for the members of the governing bodies of Corticeira Amorim, S.G.P.S., S.A.; and (ii) on the evaluation of the overall performance of the Board of Directors itself, its executive members, the Audit Committee and the internal committees. The Appointments, Evaluation and Remuneration Committee will also monitor and support the Board of Directors in the appointment of the key management personnel of Corticeira Amorim S.G.P.S., S.A. The duties of the Appointments, Evaluation and Remuneration Committee will focus on the governing bodies and key management personnel of Corticeira Amorim, S.G.P.S., S.A.

This Committee composed of three members, appointed by the Board of Directors of Corticeira Amorim, with a majority of non‑ ‑executive members who are independent of that Board. The position of chairperson of the Appointments, Evaluation and Remuneration Committee was held by an independent director, who was also a member of Corticeira Amorim's Audit Committee.

The Appointments, Evaluation and Remuneration Committee was appointed by the Board of Directors on 3 May 2021 for the 2021‑2023 term of office, and is now comprised as follows:

	Chairwoman: Maria Cristina Galhardo Vilão
	(independent non‑executive director)
Member:	António Manuel Mónica Lopes de Seabra
	(independent non‑executive director)
Member:	Maria Alexandra Alçada Costa Godinho

This Committee did not have any powers to define the remuneration of the governing bodies of Corticeira Amorim, S.G.P.S., S.A. or its key management personnel, but its assessment and opinion on the Remuneration Policy of the Governing Bodies and Other Managers of Corticeira Amorim, and the consequent Remuneration Report, could potentially and indirectly have an impact on those remunerations.

Summary of activity carried out (until 28 April 2023)

This Committee met two times during 2023 (2022: four); the overall and individual attendance was 100%, having considered and, whenever appropriate, issued opinions and/or recommendations on the matters analysed, namely:

• Analysed and assessed the proposal to amend the Appointments, Evaluation and Remuneration Committee Regulation;
• Analysed and assessed the proposal to amend the Appointments Policy;
• Analysed and assessed the 2023 Training Plan for the Board of Directors;
• Carried out a self‑assessment of the activity of the Appointments, Evaluation and Remuneration Committee in 2022 and prepared the Annual Activity Report of the Appointments, Evaluation and Remuneration Committee in 2022;
• Reviewed the Remunerations Report 2022 for proposal to the Board of Directors and subsequent consideration by the General Meeting as part of the Corporate Governance Report;
• Analysed and reviewed the Remuneration Policy of the Corporate Bodies for the three‑year period 2022‑2024, aiming, in particular, at the creation of a competitive remuneration framework and the implementation of an incentive system that promotes the alignment of the interests of executive directors with the interests of the Company and its stakeholders, in a perspective of economic, social and environmental sustainability in the medium and long term; this Remuneration Policy was then submitted to the Board of Directors and subsequently considered and approved at the General Meeting of 28 April 2023;
• Advised the Board of Directors on setting the targets and criteria for awarding the executive directors' annual and three‑year variable remuneration within the scope of the new Remuneration Policy referred to in the previous section;
• Recommended that the Board of Directors submit a proposal to the Shareholders' General Meeting on the creation of a Remuneration Committee and the appointment of its members, pursuant to Article 399(1) of the Companies Code and Article 19(4) of the Company's Articles of Association. This recommendation was accepted.

The Shareholders' General Meeting held on 28 April 2023 decided, pursuant to Article 399(1) of the Companies Code and Article 19(4) of the Company's Articles of Association, to set up an Appointments, Evaluation and Remuneration Committee for the current term of office of the governing bodies. The specialised internal committee referred to in the previous section was wound up. The same General Meeting established the new Appointments, Evaluation and Remuneration Committee Regulation, setting out its duties, composition and operating methods, and also stipulating that these duties apply to the governing bodies of Corticeira Amorim, S.G.P.S., S.A.

The Appointments, Evaluation and Remuneration Committee is made up of three independent members, appointed by Corticeira Amorim's General Meeting, ensuring their independence from the management body. It is considered that independence does not automatically cease to exist when independent directors are included, as long as they are in a minority in terms of numbers. The executive members of Corticeira Amorim's Board of Directors may not sit on the Appointments, Evaluation and Remuneration Committee. If the Appointments, Evaluation and Remuneration Committee includes independent directors who are also members of the Audit Committee, then those members are obliged to abstain from voting on the decision regarding the Audit Committee's remuneration. The position of chairperson of the Appointments, Evaluation and Remuneration Committee will necessarily be assigned to an independent director who is also a member of Corticeira Amorim's Audit Committee.

Other persons may be invited to attend meetings on a permanent basis, at the invitation of the Appointments, Evaluation and Remuneration Committee, but without having voting rights. Such persons shall be invited taking into account their specialised knowledge of the Appointments, Evaluation and Remuneration Committee's area of intervention. This Committee may also request the participation, in specific meetings, of other persons, internal or external to Corticeira Amorim, with relevant expertise concerning the issues under discussion.

The Appointments, Evaluation and Remuneration Committee, appointed by the Shareholders' General Meeting of 28 April 2023 and in office since then, is made up of:

Chairwoman:	Maria Cristina Galhardo Vilão
	(independent non‑executive director)
Member:	Álvaro José da Silva
	(independent)
Member:	Rui Fernando Viana Pinto
	(independent)

Under the terms of the respective regulations (available at

https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/), the Appointments, Evaluation and Remuneration Committee has been attributed the following powers:

In general

• Set the remuneration of the members of its governing bodies and its specialised internal committees;
• Advise the Board of Directors (i) on the preparation of succession plans and profile recommendations for the members of Corticeira Amorim's governing bodies; and (ii) on the evaluation of the overall performance of the Board of Directors itself, its executive members, the Audit Committee and the internal committees.

In matters of remuneration

• Review and propose Corticeira Amorim's Remuneration Policy and Annual Remuneration Report to the Shareholders' General Meeting, under the terms of Law no. 50/2020, of 25 August.
• Set the remuneration of the members of the Presiding Board of the General Meeting, of the non‑executive directors and the directors making up the Audit Committee and the Statutory Auditor, who shall be paid a fixed remuneration;
• Set the fixed and variable remuneration (as a form of Company's profit sharing) attributable to each of the executive directors, within the limits and respecting Corticeira Amorim's Remuneration Policy, as well as set the limit provided for in number three of Article Nineteen of Corticeira Amorim's Articles of Association;
• Define which directors will receive variable remuneration under the terms of the previous paragraph, as well as set the individual objectives and/or performance targets of the Company on which the award of variable remuneration will depend.

In matters of appointments

• Support and advise the Board of Directors in the selection of directors to be appointed to the Executive Committee of the Board of Directors and to internal committees;
• Support and advise the Board of Directors in identifying and selecting potential candidates to fill vacancies occurring in the governing bodies of Corticeira Amorim;
• Prepare a well‑founded opinion for the Board of Directors whenever any vacancy appears or there is a new term of office for the governing bodies mentioned in sub‑paragraph (b) above. That opinion identifies the people with the most suitable profile to fill that vacancy;
• The opinions of the Appointments, Evaluation and Remuneration Committee referred to above shall be accompanied by (i) a statement regarding the suitability of the profile, knowledge and curriculum vitae concerning

the role to be performed by each candidate and/or by the group of each body, (ii) the terms of reference used by the Committee; • Support and advise the Board of Directors within the scope

• of Corticeira Amorim's Appointments Policy; • Draw up recommendations, criteria and requirements related to the profile of new members of the governing bodies referred to in sub‑paragraph (b) above, appropriate to the function to be performed. In addition to individual attributes (such as competence, independence, integrity, availability and experience), these profiles should consider diversity requirements, particularly to gender, which can contribute to improving the performance of the body and to the balance in its composition;
• Review and evaluate incompatibilities and independence of the members of the governing bodies.

In matters of evaluation

• Advise the Board of Directors in its annual self‑assessment process, including the evaluation of the members of the ECBD, the Audit Committee and the internal committees;

The Appointments, Evaluation and Remuneration Committee may request from the Board of Directors, the Audit Committee, the ECBD or any other internal committee all information, documentation and assistance necessary for the exercise of its powers.

In order to provide information or clarification to shareholders, the chairperson and/or another member of the Appointments, Evaluation and Remuneration Committee must be present at the annual Shareholders' General Meeting and at any others if the respective agenda includes a matter related to the remuneration of members of the Company's bodies and committees, or if such presence has been requested by shareholders.

Summary of activity carried out (after 28 April 2023)

This Committee met two times during 2023; the overall and individual attendance was 100%, having considered and, whenever appropriate, issued opinions and/or recommendations on the matters analysed, namely:

• Determination of the fixed remuneration of the members of the Executive Committee in 2023;
• Determination of the variable remuneration of the members of the Executive Committee in 2023 (relative to 2022), having verified which targets and criteria (relevant for calculating and setting the annual variable remuneration of executive directors) were achieved in 2022.
• Preparation of the annual assessment of the Board of Directors and Internal Committees in 2023;
• Preparation of the annual assessment of the Appointments, Evaluation and Remuneration Committee in 2023;
• Preparation of the annual report of the Appointments, Evaluation and Remuneration Committee in 2023.

III. SUPERVISION

(a) Composition

30. Details of the supervisory body representing the model adopted.

The Company has adopted the Anglo‑Saxon governance model, with a double supervisory mechanism made up of the Audit Committee and the Statutory Auditor.

31. Composition of the supervisory body, with details of the Articles of Association's minimum and maximum number of members, duration of term of office, number of effective members, date when first appointed and end of the term of office of each member.

The Articles of Association determined that the Audit Committee may consist of three or four effective members, the majority of whom are independent, and there may be an Alternate.

On 23 April 2021, the Shareholders' General Meeting elected an Audit Committee made up of four effective members, all independent, to carry out duties for the 2021‑2023 term of office:

José Pereira Alves (chairman)

First appointment as chairman of the Audit Committee: 23 April 2021 End of current term of office: 31 December 2023, remaining in office until a new election pursuant to law.

Marta Parreira Coelho Pinto Ribeiro (member)

Date of appointment as Alternate to the Supervisory Board: 12 April 2019 Date of first appointment as Incumbent Member of the Supervisory Board: 18 June 2019 Date of first re‑election as Member of the Supervisory Board: 26 June 2020 (term of office 2020‑2022) First appointment as Member of the Audit Committee: 23 April 2021

End of current term of office: 31 December 2023, remaining in office until a new election pursuant to law.

Maria Cristina Galhardo Vilão (member)

Date of appointment as Alternate to the Supervisory Board: 26 June 2020 (term of office 2020‑2022) Date of appointment as Incumbent Member of the Supervisory Board: 23 December 2020 First appointment as Member of the Audit Committee: 23 April 2021 End of current term of office: 31 December 2023, remaining in office until a new election pursuant to law.

António Manuel Mónica Lopes de Seabra (member)

First appointment as Member of the Audit Committee: 23 April 2021

End of current term of office: 31 December 2023, remaining in office until a new election pursuant to law.

At the issue date of this report all the members making up the Audit Committee are independent.

The Policy for Promoting Diversity in the Governing Bodies applies to the Audit Committee as transcribed in the commentary to Recommendation I.2.1 of this report (available at https://www. amorim.com/en/investors/corporate‑governance/board‑ ‑members/), with the aim of achieving the objectives referred to therein. The actual diversity of its composition (age, gender, qualifications and professional background) is detailed in section 19 of this report.

The size, expertise, and diversity of the Audit Committee, combined with the availability of all the members, are appropriate to the size of the Company and the complexity of the risks inherent to its activity, ensuring the full, efficient and diligent exercise of the duties entrusted to this body.

32. Details of the members of the supervisory body, which are considered to be independent pursuant to Article 414(5) of the Portuguese Companies Code.

As far as the Company knows, all the members of the Audit Committee are independent, meet the independence criteria set out in Article 414(5) as well as the incompatibility rules envisaged in Article 414‑A (1), both of the Portuguese Companies Code.

33. Professional qualifications of each member of the supervisory body and other important curricular information.

As set out in section 19 above.

b) Functioning

34. Availability and place where rules on the functioning of the supervisory body may be viewed.

The operating regulations of the Audit Committee can be found at https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/.

35. The number of meetings held and the attendance report for each member of the supervisory body.

The Audit Committee meets whenever called by the chairperson or by any other two members of the Supervisory Board, and at least bi‑ ‑monthly, pursuant to article 11 of the rules of procedure of that body.

During 2023, twelve meetings of the Audit Committee were held (2022: nine), with the participation or representation of all members. Overall attendance was 93.8%, and individual attendance was 100%, except in the case of Maria Cristina Galhardo Vilão, who was represented at one meeting, so her individual attendance was 92%; and in the case of Marta Coelho, who was represented at two meetings, so her individual attendance was 83%.

36. The availability of each member of the Audit Committee, indicating the positions held simultaneously in other companies inside and outside the group, and other relevant activities undertaken by members of these Boards.

As set out in section 26 above.

(c) Powers and duties

37. A description of the procedures and criteria applicable to the supervisory body for the purposes of hiring additional services from the external auditor.

The Audit Committee is responsible for monitoring the independence of the Statutory Auditor, especially in relation to the provision of additional services.

Subject to the express prior approval of the Audit Committee, services other than the statutory audit were contracted from the Statutory Auditor. Such services are described and itemised in section 47.

38. Other duties of the supervisory body.

The Audit Committee is responsible, under the law and respective Rules of Procedure (available at https://www.amorim.com/en/ investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/:

• a. Oversee the management of the Company;
• b. Monitor compliance with the law and articles of association;
• c. Prepare an annual report on its supervisory action and give an opinion on the report, accounts and proposals submitted by management;
• d. Convene the General Meeting when the chairperson of that Presiding Board does not and should do so;
• e. Assess and issue its prior opinion on Related Party Transactions, under the terms of its own regulations in accordance with the applicable law;
• f. Check that the published report on the corporate governance structure and practices includes the provisions referred to in article 29‑H of the Portuguese Securities' Code;
• g. Outsource for the provision of expert services to assist one or more of its members in the exercise of their duties; the hiring and remuneration of experts must take into account the importance of the entrusted matters and the financial situation of the Company; the scope and conditions of the provision of services to be hired must be communicated in advance to the Board of Directors;
• h. Comply with all other duties set down by law or the articles of association;
• i. Check the correctness of the accounting records and documents supporting those records;
• j. Control, as often and in such manner as the Audit Committee shall think fit, cash assets and any type of assets belonging to the Company or in its possession as a result of any guarantees and deposits received by the Company;
• k. Check the accuracy of the financial statements;
• l. Check whether the accounting policies and valuation criteria, adopted by the Company, lead to a correct assessment of the assets and profits;
• m. Independently and diligently ensure that the management body fulfils its responsibilities in choosing appropriate accounting policies and criteria and establishing adequate systems for financial reporting, risk management, internal control and internal auditing.
• n. Supervise the appropriateness of the process of preparation and disclosure of financial information by the management body, including the suitability of accounting policies, estimates, judgements, relevant disclosures and their consistent application from year to year, in a properly documented and reported manner, as well as make recommendations or proposals to ensure their integrity;
• o. Supervise and assess the adequacy of the structure and effectiveness of the internal control system, comprising the risk management, compliance and internal audit functions, and it must also issue an opinion on (i) the strategic guidelines and the risk policy, prior to their final approval by the management body, and (ii) the work plans and resources concerning the internal control system services, including the risk management, compliance and internal audit functions, and may propose any necessary adjustments;
• p. Propose and implement mechanisms and procedures for (i) periodic control and evaluation to ensure that the risks effectively incurred by the Company are consistent with the objectives set by the management body; (ii) adjustment of the internal control system, including an annual assessment of the degree of internal compliance and performance of that system, as well as the prospects for changing the previously defined risk framework;
• q. Receive the information on wrongful acts reported by shareholders, by employees of the Company or other persons;
• r. Examine and deal with any claims regarding anomalous situations and request the required explanations about such situations from members of the other Company's governing bodies;
• s. Suggest, following the analysis referred to in the preceding paragraph, measures to safeguard from the occurrence of such irregularities and give knowledge of them to the Board of Directors and to the internal or external entities that each situation warrants, while always guaranteeing the non‑disclosure of the identity of those reporting such situation, unless they expressly do not wish such;
• t. Suspend directors when:
  • Their health temporarily prevents them from performing their duties;
  • Other personal circumstances preclude them from carrying out their duties, for a period of time presumably greater than 60 days, and asking the Audit Committee to be temporarily suspended or the Board deems this to be in the interest of the Company;
• u. Declare the removal from office of Directors when, following their appointment, there occurs some form of incapacity or incompatibility that poses a barrier to that appointment and the director does not leave that post or does not remove the supervening incompatibility within 30 days;
• v. In relation to the accounting information it is the responsibility of the Audit Committee to:
  • Monitor and supervise the statutory audit of the individual and consolidated annual accounts, in particular the implementation of the same, taking into account any findings and conclusions of the Portuguese Securities Market Commission;
  • Consider the report of the directors, the financial statements, the statutory certification of accounts or explanatory statement regarding their non‑certification, as well as the additional report to be prepared by the Statutory Auditor;
  • If it agrees with the statutory audit certificate or the statement that the issue of such certification is impossible, then it must explicitly state this in its opinion;
  • If it does not agree with the statutory audit certificate or the statement that the issue of such certification is impossible, then it must include the reasons for such disapproval in its report;
  • Send the report and opinion to the Board of Directors within 15 days of the date on which it received the referred accounting documents;
  • Issue in its report and opinion a statement to be prepared,

signed by each of the Audit Committee's members, with their names and positions clearly stated, where they state that, relating to the annual directors' report, the annual accounts, and other accounting documents required by law or CMVM Regulations, to the best of its knowledge, the information was prepared in accordance with applicable accounting standards, giving a true and fair view of the assets and liabilities, financial position and profit/loss of the Company and the companies included in the consolidation perimeter, and that the management report faithfully describes the evolution of the business, the Company's performance and position and of the companies included in the consolidation perimeter, and it contains a description of the principal risks and uncertainties that they face.

• w. In relation to the Statutory Auditor it is the responsibility of the Audit Committee to:
  • Select the auditors to propose to the General Assembly and justifiably recommend the preference for one of them;
  • Monitor and supervise, under the terms of the applicable legal regime, the supervisory procedures aimed at ensuring the independence of the Statutory Auditor, including the obtaining of formal written confirmations of the Statutory Auditor provided in Article 78 of the Statute of the Statutory Auditors Association and in particular, verify the appropriateness and approve the provision of services other than audit services;
  • Be the main liaison with the Statutory Auditor of the company's accounts, and it is responsible, inter alia, for proposing the relevant remuneration and ensuring that the proper conditions for the provision of services are provided;
  • Annually assess the work performed by the Statutory Auditor, its independence and suitability for the performance of the functions and propose to the competent body its dismissal or termination of the contract as to the provision of the services when there is a valid basis for said dismissal.

The Audit Committee is guaranteed access to all documentation and employees of the Company to obtain regular information on the evolution of the activity in general, and the areas that are its special competence in particular. A system of regular reporting is also in place, covering, among others, internal audit reports and the list of transactions with related parties.

IV. STATUTORY AUDITOR

39. Details of the statutory auditor and the partner representing it.

The Statutory Auditor shall consist of one member and one alternate member, any one of which may be a statutory auditor or statutory auditor firm.

The Shareholders' General Meeting, held on 23 April 2021, re‑ ‑elected for the current term of office (2021‑2023):

Statutory Auditor: ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A., represented by Rui Manuel da Cunha Vieira Alternate: Pedro Jorge Pinto Monteiro da Silva e Paiva Date of first re‑election: 07 April 2017 (term of office 2017‑2019) Date of first re‑election: 26 June 2020 (term of office 2020‑2022, interrupted in 2021 following an amendment to the governance model of the Company and, subsequently, the new elections for corporate bodies)

Date of second re‑election: 23 April 2021 (term of office 2021‑ ‑2023)

End of current term of office: 31 December 2023, remaining in office until a new election pursuant to law.

The Statutory Auditor is responsible for the following:

• Undertake all necessary examinations and checks for the audit and issue of the statutory audit certificate of the Company's accounts. The following must be checked, in particular:
  • The correctness of the accounting records and documents supporting those records;
  • When deemed convenient and in the manner considered adequate, the extent of cash and stocks of any kind of goods or assets owned by the Company or received as collateral, deposit or otherwise;
  • The accuracy of the financial statements;
  • Whether the accounting policies and valuation criteria adopted by the Company lead to a correct assessment of the assets and profits;
• Immediately report by registered letter to the chairperson of the Board of Directors the facts in its possession that it considers indicate serious difficulties in the pursuit of the Company's object, including repeated non‑payments to suppliers, bad debts, issuing cheques without sufficient funds, failure to pay Social Security contributions or taxes. Request that the Chairman of the Board of Directors, in the event no reply was made to a letter or request or the reply received was deemed unsatisfactory, the convening of the Board of Directors to meet, with the statutory auditor present, to appraise the facts and take the appropriate decisions. If the meeting is not held or if the adopted measures are not deemed adequate to safeguard the interests of the Company, it must require, by registered letter, that a General Meeting is convened to appraise and decide on the facts contained in the mentioned registered letters and the minutes of the above‑referred meeting of the Board of Directors.

40. State the number of years that the statutory auditor consecutively carries out duties with the Company and/or Group.

ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A. was elected on 7 April 2017 (term of office 2017‑2019) and re-elected on 23 April 2021 (current term of office: 2021‑2023). 2023 is the seventh consecutive year of performance of duties, including that of the Statutory Auditor partner who represents it in the fulfilment of those duties.

41. Description of other services that the statutory auditor provides to the Company.

During the year under review, ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A., including other entities belonging to the same network, was hired by the Company and other companies that are in a control or group relationship with it, to deliver audit and statutory audit services and other services subject to prior examination and approval by the Audit Committee, such as the review of interim financial information and other reliability assurance services.

The total amount of those services are stated in section 47.

V. EXTERNAL AUDITOR

42. Details of the external auditor appointed in accordance with Article 8 and the partner that represents same in carrying out these duties, and the respective registration number in the CMVM.

The external audit of Corticeira Amorim is undertaken by the Statutory Auditor, a position held by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A., represented by Rui Manuel da Cunha Vieira (Statutory Auditor).

43. State the number of years that the external auditor and respective partner that represents same in carrying out these duties consecutively carries out duties with the Company and/or Group.

As set out in section 40 – seven consecutive years.

44. Rotation policy and schedule of the external auditor and the respective partner that represents said auditor in carrying out such duties.

In this matter, Corticeira Amorim aligns its practice with that enshrined in Law No. 140/2015, of 07 September (Statute of the Statutory Auditors Association) in the case of public interest entities:

• The initial term of office for the external auditor to carry out its statutory audits shall be at least two years;
• The renewal of the term of office of the external auditor is limited to fulfilling a maximum consecutive period in carrying out such duties of ten years;
• The maximum period to carry out such duties by the respective partner, that represents the external auditor, is seven years, starting from the first appointment.

45. Details of the Board responsible for assessing the external auditor and the regular intervals when said assessment is carried out.

The Audit Committee is responsible for annually assessing the work carried out by the statutory auditor, as well as its independence and suitability to carry out such duties.

46. Details of services, other than auditing, carried out by the external auditor for the Company and/or companies in a control relationship and an indication of the internal procedures for approving the hiring of such services and a statement on the reasons for said hire.

As set out in section 41 (details of services) and in section 37 (internal procedures).

47. Details of the annual remuneration paid by the Company and/or legal entities in a control or group relationship to the auditor and other natural or legal persons pertaining to the same network and the percentage breakdown relating to the services.

The review of interim financial reporting and other reliability assurance services item covers the limited audit of the consolidated financial statements for the six‑month period ended 30 June 2023, the independent review of the Sustainability Report, the independent review of the green bonds report, the certification of combined financial statements and the execution of procedures to validate applications under the RRP (Recovery and Resilience Plan) agendas and PT 2020.

Type of Service	Audit and certification of accounts	The review of interim financial information and other reliability assurance and services	Tax advice	Other services	Total
EY SROC
Corticeira Amorim	49,440	26,950	0	0	76,390
Group companies	220,020	22,300	0	0	242,320
Companies of EY's network
Corticeira Amorim	0	0	0	0	0
Group companies	175,820	7,500	0	0	183,320
Total	445,280	56,750	0	0	502,030
Corticeira Amorim	49,440	26,950	0	0	76,390
Group companies	395,840	29,800	0	0	425,640
Total	445,280	56,750	0	0	502,030
	89%	11%	0%	0%	100%

Values in euros.

Washing process applied by Amorim Cork to all cork stoppers.

C. INTERNAL ORGANISATION

I. ARTICLES OF ASSOCIATION

Available at https://www.amorim.com/xms/files/Investidores/ Estatutos\_Politicas\_Regulamentos/20210423CorticeiraAmorim ArticlesofAssociationl.pdf

48. Rules governing the amendment of the Articles of Association of the Company.

The rules governing the amendment of the Articles of Association of the Company are those provided for by law, with the addition of the following specific provisions set out in the aforementioned articles: the Company is managed by a Board of Directors consisting of a chairperson, a vice‑chairperson and from one to nine other members. This statutory provision may be amended only with the approval by a majority of shareholders representing at least two‑ ‑thirds of the Company's share capital.

II. REPORTING OF IRREGULARITIES

49. Reporting means and policy on the reporting of irregularities in the Company.

Corticeira Amorim, in line with its strict sense of ethics, has formally established an internal reporting procedure designed to prevent and detect improper and/or illegal behaviour in the context of professional activity. and to protect those who report it in good faith and with serious grounds, as well as the people and entities related to them. This procedure applies to Corticeira Amorim and the companies over which it directly or indirectly holds a control relationship (by holding more than 50% of the share capital), regardless of whether their registered offices are in Portugal or in another country.

The rights and guarantees of those submitting a report, namely those of confidentiality or anonymity, processing of personal data, as well as the conditions and measures for their protection, are legally established in this specific scheme and in other applicable legislation, as well as in the Privacy Policy (attached to this Procedure) and are duly observed. These include the prohibition of retaliation against those submitting the report. The practice or the omission of any acts that, in a professional context and motivated by the report, directly or indirectly, cause or may cause damage to the person submitting the report are forbidden.

Also benefiting from the legally established rights and protection, with the necessary adaptations, are (i) persons assisting those submitting a report through this procedure and whose assistance must be confidential, or who have family or professional relations with those submitting a report and who, for that reason, may be subject to retaliation in a professional context (ii) legal persons or similar entities owned or controlled by those submitting a report, for which they work or to whom they are otherwise related in a professional context.

Irregularities are defined in this reporting procedure as improper or unlawful conduct, by action or omission, in a professional context, including attempts to conceal it, which are reasonably foreseeable, are taking place or have already taken place, in breach of the Code of Business Ethics and Professional Conduct or Regulations, or are contrary to related Policies or Principles, and/or the relevant legal rules in this context.

By way of example, any of the following is considered to be an irregularity: (i) discrimination or unequal treatment based on ethnicity, gender and sexual orientation, religion, creed, culture, nationality, disability, political or ideological orientation, education, marital status; (ii) harassment, in whatever form, which has the purpose or effect of creating an intimidating, hostile, degrading or humiliating environment; (iii) failure to comply with rules on health, safety and working conditions; (iv) improper sharing of confidential information or use of privileged information; (v) facilitation, creation, maintenance or promise of irregular situations or favours; (vi) improper receipt of any benefit; (vii) failure to comply with the duty of diligence in relation to the procedures for the prevention and detection of illegal practices in financial and accounting matters, including money laundering or terrorist financing; as well as any form of participation in (viii) violent crime, especially violent and highly organised crime, (ix) human trafficking; (x) child pornography and procurement of minors; (xi) arms trafficking; (xii) influence peddling; (xiii) drug trafficking; (xiv) illegitimate

access to computer systems, computer sabotage and any practice that causes damage to computer programmes or data.

The reporting procedure may be used, in particular, by (i) the Corticeira Amorim Group employees, (ii) persons or entities who are counterparties of the organisation (and subcontractors), namely customers, service providers and suppliers, (iii) owners of shareholdings, (iv) members of administrative or management bodies and of supervisory or oversight bodies. In this context, the fact that the reporting of an irregularity is based on information obtained in a professional relationship that has since ended, as well as during the recruitment process or during another pre‑contractual negotiation phase of an established or non‑ ‑established professional relationship, does not prevent that person from being considered capable of reporting an irregularity.

Reports from the Corticeira Amorim Group employees are addressed first and foremost to the senior manager of the area/ unit in which the person making the report works, either verbally, at a meeting scheduled in advance, or in writing, in the latter case the person submitting the report can choose to file the report anonymously or to identify themselves, using the form available at https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/.

Alternatively, if the reporting person has reasonable grounds to believe that the report will not be or has not been properly analysed and decided objectively and impartially by his or her superior, or if he or she is the object of the report, or if there is a risk of retaliation, the report may be made to the Audit Committee referred to in point 6, anonymously or with identification of those submitting a report, depending on the option taken, using: (i) the internal irregularities reporting channel, available at https://corticeiraamorim.integrityline.com; or (ii) the form available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/, to be sent to the e‑mail address specially configured for the purpose of this procedure, as further specified in the aforementioned form.

To clarify any doubts regarding the use of this reporting procedure, those submitting reports who are Employees of the Corticeira Amorim Group should contact the Organisation's Compliance Officer/Legal Department, via legal@amorim.com or in person, if so requested in advance.

The Audit Committee of Corticeira Amorim is responsible for:

(i) in cases under its jurisdiction, receiving the reports addressed to it and to the Company Compliance Officer, evaluating and taking decisions on them;

(ii) Reporting any irregularities effectively confirmed to the Board of Directors and to the relevant authorities, both internal and external, as justified or required by each specific situation; (iii) Suggesting measures to prevent or mitigate the occurrence of irregularities;

(iv) Periodically analysing this internal reporting procedure in order to ensure its compliance at all times with applicable legislation and promoting its alteration in terms appropriate to the achievement of its objectives. Due notice will be provided in such cases.

The following are directly addressed to the Audit Committee and the Company's Compliance Officer: (i) reports on irregularities by members of administrative or management bodies and of supervisory or oversight bodies, and (ii) reports submitted by anyone who is not an employee of Corticeira Amorim.

Reports submitted by non‑employees of the Corticeira Amorim Group may be submitted verbally at a face‑to‑face meeting requested in advance via the e‑mail address on the form available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/, or in writing, in the latter case anonymously or with identification of the person submitting the report, depending on the choice made: (i) the internal reporting channel, available at https://corticeiraamorim.integrityline.com; or (ii) the form available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/, to be sent to the e‑mail address stated on that form.

Anyone wishing to submit a report in writing, where the electronic means are clearly not accessible or manageable by the person making the report, then the report may be sent by post, marked on the outside as "Confidential" and addressed to the Audit Committee and Company Compliance Officer ‑ in which case the legally established deadlines to be observed by the organisation in this procedure shall only begin from the date on which such letter is proven to have been received: Audit Committee and Company Compliance Officer of Corticeira Amorim, SGPS, S.A. Confidential, Rua Comendador Américo Ferreira Amorim, nº 380 – PO Box 20– 4536‑902 MOZELOS

Thus, reports of irregularities/complaints can be submitted:

• Via the online platform available at https://corticeiraamorim.integrityline.com/frontpage;
• By e‑mail to supervision@amorim.com;
• By post, in an envelope addressed to the Company's Audit Committee and/or Compliance Officer;
• in person, by requesting a meeting for this purpose.

All reports submitted by the above means will be received and analysed by Corticeira Amorim's Audit Committee, its independent supervisory body.

The internal communication procedure begins with the submittal of the report and, within seven days of its reception, Corticeira Amorim, through the employees responsible for the procedure, notifies the person who submitted the report of its reception and informs him/her, in a clear and accessible way, of the requirements, competent authorities, form and admissibility of the external report, as stipulated by law.

The appropriate internal action is taken following the submittal of the report, in order to verify the content of the same and, if necessary, to bring the reported irregularity to an end, including by opening an internal investigation or informing the competent authority for the respective investigation.

Within three months of receiving a report, the Corticeira Amorim personnel responsible for the procedure will inform the person who submitted it of the measures planned or already taken to follow up on the submitted report and the reasons for them.

The person submitting the report can request at any time to be notified of the outcome of the analysis carried out on the complaint within fifteen days of its conclusion.

If the report is considered to be well‑founded, the decision of the hierarchical superior or the Audit Committee, as the case may be, is adopted in a reasonable, proportional and appropriate manner, considering the type of irregularity and the circumstances in which it occurred. Appropriate action shall be taken with the competent authorities, including judicial authorities, for investigation of the breach, where applicable.

The prohibition of retaliation against the person who submitted the report is respected at all times and said person shall not be prejudiced in any way, directly or indirectly, by a report of irregularity which he or she has submitted in good faith and with genuine grounds. The following, for example, are considered to be retaliation: (i) unjustified change of working conditions; (ii) unfounded negative performance evaluation; (iii) suspension of an employment contract; (iv) non‑renewal of an employment contract; (v) application of disciplinary sanctions; (vi) termination of a supply or service contract.

The law establishes that, subject to proof to the contrary, any of these behaviours are presumed to be motivated by the report submitted and are therefore prohibited for a period of two years following the submittal of the report.

This internal reporting procedure offers guarantees of independence, confidentiality and absence of conflicts of interest, ensures the integrity and safekeeping of the reports submitted, the confidentiality of the identity of the person submitting the report, or their anonymity when that person submits the report by these means, as well as the confidentiality of the identity of any third parties mentioned in it.

Those responsible for handling the report, namely for receiving reports (the hierarchical superior of the person submitting the report or the Audit Committee and the Company Compliance Officer), comply with the corresponding obligations, analyse the reports in an exhaustive, objective and impartial manner, and manage the procedure with dignity and respect for those involved.

The rights and protection of the law shall not apply to those submitting a report who, to the detriment of the internal reporting procedure available to them, unduly use the route of external communication or public disclosure, because the legal requirements are not met.

III. INTERNAL CONTROL AND RISK MANAGEMENT

50. Individuals, boards or committees responsible for the internal audit and/or implementation of the internal control systems.

The implementation of the internal control system (comprising the risk management, compliance and internal audit functions) is the Board of Directors' responsibility.

The supervisory body (Audit Committee) is responsible for supervising the effectiveness of the internal control system, including Risk Management and Compliance (which report to the Board of Directors) and Internal Audit (which reports to the Audit Committee).

51. Details, even including organisational structure, of hierarchical and/or functional dependency in relation to other boards or committees of the Company.

As mentioned in sections 50 and 52 above.

52. Other functional areas responsible for risk control.

The main aim of the Board of Directors and the Executive Committee is to establish an integrated overview of critical success factors in terms of profitability and/or associated risks with a view to creating sustainable value for both the Company and its shareholders, being responsible for defining the risk strategy and policies, as well as the parameters for assessing acceptable risk, with the support of the Risk Committee (specialised internal committee) and in liaison with the Audit Committee.

Corticeira Amorim presents an integrated flow of governance of the risk management process, based on the concept of Lines of Defence6:

Board of Directors:

• Foster risk management and promote a risk culture within the Group;
• Approve the risk management policy;
• Ensure the operation of the risk management process and supervise the execution of the risk strategy;
• Support the organisation, providing the Lines of Defence with human, financial and other resources so that they can effectively carry out their role in the risk management process;
• Appraise the Annual Risk Management Report;
• Annually update and approve the Multiannual Risk Plan.

Risk Committee:

• Advise the Board of Directors on Corticeira Amorim's risk policy and, within that framework, on the appetite for general, current and future risks;
• Evaluate and monitor the main risks inherent to Corticeira Amorim's activity, as well as the level of exposure to risk and its potential development;
• Inform the Audit Committee of the risks to which Corticeira Amorim is subject and the effectiveness of the respective mitigation plans, promoting the recommendations and reports that the Board of Directors and/or the Audit Committee may request;
• Assist the Board of Directors in supervising the execution of the risk strategy;
• Discuss and issue the opinions and recommendations to the Board of Directors that it deems appropriate, on risk strategies at the aggregate level and by risk type;
• Propose the creation of mechanisms to ensure the implementation of processes, which promote compliance with the approved risk policies;
• Annually review risk policies and procedures and report the results of this review to the Board of Directors;
• Prepare an Annual Risk Management Report for the Board of Directors and for the Audit Committee, which should include an appraisal of the following topics:
  • The risk strategy and general risk appetite, current and future;
  • Identification of the main risks to which Corticeira Amorim is subject in carrying out its activity, the probability of their occurrence and their respective impact;
  • The performance of the instruments and measures adopted with a view to mitigating the respective risks;
  • The risk monitoring procedures and of the degree of internal compliance with the adopted risk policy;
  • It should also include possible proposals for adjustment of the risk policy and/or of the evaluation and supervision procedures.

⁶ Lines of Defence:

^‑ First line of defence: daily risk management and control activities; ‑ Second line of defence: standardisation and monitoring of the main risks and the internal control system;

^‑ Third line of defence: supervision, inspection and assessment of the effectiveness of internal control.

Audit Committee:

• Supervise the effectiveness of the internal control system, comprising the risk management, compliance and internal audit functions;
• Evaluate and issue its decision and the risk management policy prior to its final approval by the Board of Directors;
• Evaluate and issue its opinion on the risk appetite levels, prior to its approval by the Board of Directors.

Internal Audit (3rd Line of Defence)

• Supervise and evaluate compliance with and the effectiveness of the controls implemented;
• Plan and carry out risk‑based audit;
• Undertake control tests to evaluate the effectiveness of the risk management and prevention.

Compliance (2nd Line of Defence)

• Ensure and monitor the application of the Compliance Programme on the prevention of corruption and related offences, essentially consisting of:
  • Code of Business Ethics and Professional Conduct of Anti‑ ‑Corruption Code of Conduct;
  • Whistleblowing channel;
  • Risks of Corruption and Related Offences Prevention Plan;
• Ensure and monitor the application of the General Data Protection Regulation;
• Monitor compliance with export restrictions deriving from economic sanctions and international restrictive measures.

Risks Management (2nd Line of Defence)

• Develop and implement policies, methodologies, processes, and infrastructure for integrated risk management;
• Propose changes to the level of materiality to be considered;
• Plan and programme the annual risk management process cycle;
• Proposed revisions to the risk management policy;
• Support the coordination of the process of identifying, analysing and evaluating risks, and the respective control measures;
• Ensure training and provide the necessary support for the risk identification process;
• Support the external dissemination of official information referring to business risk management;
• Provide the necessary support to the Risks Committee;
• Prepare a regular report following up on risk mitigation measures;
• Consolidate the information collected and report the results, through regular reports to the Executive Committee, the Risk Committee, the Audit Committee and the Board of Directors.

Business Units/Departments (1st Line of Defence)

• Identify, monitor and update the risks associated with their processes and businesses;
• Propose control or mitigation measures for the risks identified;
• Implement approved control or mitigation measures;
• Monitor the effectiveness of the control and mitigation measures and report any identified shortcomings;
• Provide the information necessary regarding the risk management of the processes under its responsibility.

Therefore, given the specificities of Corticeira Amorim's framework and business model ‑ in particular (i) the development of an essentially stable business; (ii) the know‑how and skills accumulated over 150 years of activity, continuously enhanced through innovation, development and training programmes; (iii) diversification in terms of products, currencies, markets, the vast portfolio of clients (iv) the effective management and monitoring of the business' critical factors by the Board of Directors and other functions related to the management of these factors; (v) the robust control systems implemented and (vi) the dual corporate supervision (Audit Committee and Statutory Auditor), it can be concluded that Corticeira Amorim's internal control system (comprising risk management, compliance and internal control) is structured and sized appropriately for its activity.

53. Details and description of the major economic, financial and legal risks to which the Company is exposed in pursuing its business activity.

Corticeira Amorim has implemented a process for identifying risks ‑ that could affect its strategy and performance ‑ through an analytical model which was:

• top‑down (to identify risks of a more strategic‑tactical nature);
• bottom‑up (to identify risks of a more operational/ transactional nature).

Appropriate mitigation measures have been defined for the risks identified, to minimise the probability of the occurrence and/or the impact of risk, which have been compiled in Risk Catalogues. Risk indicators or gauges have also been identified for each risk, which act as monitoring instruments and enable changes or deviations to be anticipated.

No new risks were added to the Corticeira Amorim Risk Matrix in the process of risk analysis and review carried out at the end of 2023.

Raw material – Cork

(Strategic and exogenous risk)

• The need to encourage new plantations, to complement the natural generation of cork oak forests which, by itself, is not sufficient to meet the estimated growth in demand for cork raw material;
• Effects of climate change;
• Need to correct unsuitable cork oak forest cultivation practices, in order to mitigate certain pests and diseases;
• Availability of qualified labour for managing the cork oak forests and extracting cork;
• With the increase in the price of cork, the selection of its application should take into account the maximisation of the value that Cork adds to products and solutions, ensuring the competitiveness of the portfolio and the profitability of the company.

Main mitigation measures:

• The critical nature of this factor, which is common to all the Business Units, means that the management of the purchase, storage and preparation of the only variable common to all Corticeira Amorim's activities, which is the raw material (cork), is wholly carried out by the Amorim Florestal Business Unit, an autonomous unit with professional and independent executive management. This allows us to:
• Form a specialised team exclusively focused on raw materials;
• Make the most of synergies and integrate all raw materials (cork) manufactured by other BUs in the relevant BU's production process;
• Management of raw materials from a multinational perspective;
• Strengthen its presence in cork‑producing countries;
• Promote forest certification, improve the technical quality of products and enter into research and development partnerships with forestry‑related partners;
• Develop R&D forest projects on cork oak genetics and to fight pests and diseases;
• Carry out recycling actions which increase circularity and make cork available for non‑stopper applications;
• Ensure that an optimal mix of raw materials is used to meet market demand for finished products;
• Ensure the supply stability of cork, a critical variable for Corticeira Amorim's operations, over the long term;
• Prepare and propose to the Board of Directors the multi‑annual purchasing policy to be implemented.

Service level at the end customer

(Operational and exogenous risk)

The relevance of the service level risk at the end customer, arising from disruption in the supply chain and logistics, results above all from the current context, markedly influenced by the extremely serious consequences of the armed conflicts between Russia and Ukraine and between Israel and Palestine, namely:

• In logistical terms, insofar as export sales are mainly carried out from Portugal, so the rise of logistical obstacles in getting goods to relevant destinations for Corticeira Amorim represents a risk;
• Reduced number of logistical operators in certain locations (road, maritime and air transportation) and subsequent risks of unavailability and/or price increases.

Main mitigation measures:

• Development of a logistical model that ensures the best logistical solutions in the short and medium‑long term;
• Identify alternatives to the current options for the main destinations;
• Diversification of transportation and logistical suppliers;
• Selection of suppliers and search for solutions depending on their geographical location;
• Implementation of a transport tracking system;
• Monitoring and updating security plans/recovery plans following loss of significant suppliers.

Transportation, energy and other supply price risks

(Operational and exogenous risk)

This risk's relevance results above all from the current context, markedly influenced by the consequences of the armed conflicts between Russia and Ukraine and between Israel and Palestine, namely:

• Pressure on results due to the increase in the price of transport, energy and others;
• Unavailability of containers for transport, with an impact also on the increase in price, in particular regarding Asia (purchases) and the USA (sales);
• Lack of alternative/reduced number of logistical operators in certain locations (road, maritime and air transportation) and subsequent risks of price increases;
• New energy contracts with potentially significant cost increases.

Main mitigation measures

• Continuous monitoring of market prices, carrying out supply tenders, regular requests for quotations from a diverse range of suppliers;
• Significant part of energy needs satisfied based on cork dust in purchased biomass;
• Revision of the energy mix contracting strategy (longer‑term contracting, increased exploitation of cogeneration and photovoltaic investments);
• Optimising the production process to obtain greater energy efficiency.

Price risk (other materials)

(Operational and exogenous risk)

• Increasing the prices of other raw materials, particularly rubber, subsidiary materials and packaging materials;

• Reduced competitive supply alternatives for certain materials. Main mitigation measures:

• Continuous monitoring of market prices, carrying out supply tenders, regular requests for quotations from suppliers;
• Monitoring the entire supply chain;
• Specialised team exclusively dedicated to procurement;
• R&D of new raw materials, with risk assessment of potential suppliers;
• Production verticalisation: incorporation of the intermediate transformation stages using own facilities.

Cybersecurity

(Operational and exogenous risk)

• Social engineering attacks aimed at unavailability of services and/or exfiltration of data and/or execution of fraudulent financial transactions;
• Cyberattacks on Group companies around the world;
• Unplanned access to information/IT systems by service providers;
• Unauthorised dissemination or sharing of corporate data and/or personal data;
• Cyber attacks targeted at disrupting critical services;
• Loss of revenue due to plant shutdowns or disruption of critical services;
• High costs for data or system recovery.
• Main mitigation measures:
• Specification of corporate governance model for cybersecurity;
• Implementation of management process and security policies with third parties;
• Regular training actions and awareness of cybersecurity;
• Spot audits and tests aimed at testing system weaknesses every year;
• Response plan to cybersecurity incidents;
• Entity management platform;
• Device access management and privileged access monitoring;
• Vulnerability management and remediation;
• Registration control of IT/OT assets;
• Development of cybersecurity plan cutting across all geographical areas.

Technical/infrastructure replacement

(Operational and endogenous risk)

• Obsolescence of installations and equipment, due to the appearance of new technologies;
• Manufacturing premises and equipment with specific technical characteristics, which may make the rise of technological innovations in the market more difficult, thereby requiring a greater investment on the part of the Group in the search for new solutions;
• Increased need for investment for technological replacement of factories and premises.

Main mitigation measures:

• Implementation of a minimum CAPEX investment plan for ongoing improvement objectives and technological R&D;
• R&D investment:
  • R&D Flooring programme, combining technology, formats and forms of installation, based on new composites from sustainable raw materials;
  • Circular economy programme, seeking to collect and reuse industrial by‑products;
  • Technological development programme, utilising new technologies, developing knowledge and new composites from prime raw materials;
• Optimisation and optimisation of manufacturing processes;
• Digitalisation and optimisation of business support processes; • Encourage closer ties with the entrepreneurs/start‑ups ecosystem.

Climate change

(Strategic and exogenous risk)

• Changes in environmental laws and regulations may require changes in products, production processes and the adoption of new technologies;
• Reduction of available raw material, insofar as climate change may lead to a lack of balance in the ecosystem nurturing the cork oak, particularly due to the occurrence of severe droughts, making its dissemination and growth more difficult;
• Strategy to develop increasingly greener products (reducing the use of harmful plastics and favouring the use of renewable, recycled or reused materials).

Main mitigation measures:

• Long‑term strategy sustained by new cork oak plantations in new geographical latitudes and new forestry models;
• Dissemination and promotion in the market of the contribution of cork products to mitigating climate change, both through their capacity to retain carbon and also through replacing more energy intensive alternative products;
• Promotion of a new value equation for the Cork oak forests which, in addition to the industrial value of cork, incorporates biodiversity and positive externalities, particularly carbon retention, as complementary sources of income;
• Plan for the diversification of the cork oak forest (geographical area, density and type of plantation);
• Reinforcement of the sustainability plan in the Business Units;
• Seeing as an opportunity the fact that cork and the cork oak tree have positive connotations in future trends to combat climate change through the consumption of products with a better carbon footprint and through the planting of more trees that contribute towards carbon neutrality objectives.

Foreign Exchange Risk

(Operational and exogenous risk)

• Exchange rate volatility is a factor in the potential erosion of business margins;
• Exchange‑rate reserve volatility regarding net investment in subsidiaries/associates.

Main mitigation measures:

• Active policy of replacing invoicing currencies, seeking to increase the percentage of invoicing in euros;
• Exchange rate risk hedging policy, either by natural hedging or by contracting suitable financial instruments;
• Regular monitoring of forecast cash flows in order to ensure the presence of the necessary liquidity to comply with obligations in foreign exchange;
• Continuous and prospective monitoring of exchange rate development, through the Trading Room, in compliance with the exchange rate contracting policies specified by the Board of Directors.

Rise of new pandemics

(Operational and exogenous risk)

Perception of an increased probability in the appearance of new pandemics or spread of infectious diseases and the impacts that a pandemic scenario has for Corticeira Amorim, particularly:

• In terms of employee health;
• Increased rates of absenteeism due to infection or prophylactic quarantining;
• In terms of the Group's productive capacity;
• Potential disruption of the supply and distribution chain;
• Reduction in demand and subsequent reduction in sales;
• Need to reorganise ways of working, particularly teleworking and working at a distance;
• Pressure on the Group's information systems due to the imposition of teleworking.

Main mitigation measures:

• Specific Contingency Plan to respond to a new pandemic scenario.

Risk of the development of alternative stoppers (Strategic and exogenous risk)

• Rise of new alternative materials to cork;
• Increase in competition from alternative stoppers, particularly screwcaps;

Main mitigation measures:

• Investment and continuous monitoring of the quality and reliability of cork stoppers and the quality of cork raw materials;
• Ongoing reinforcement of market perception of the natural origin of cork stoppers;
• Strengthening of communication campaigns to promote the attributes of cork products;
• Investment in promoting cork stoppers as an "oenological product";
• Continuous investment in R&D and the development of new solutions and composites for the cork stopper;
• Compliance with certifications and requirements, both of purchase materials as well as manufactured products.

Changes in consumer patterns (wine sector)

(Strategic and exogenous risk)

• Impact of changes in wine and spirits consumption patterns and habits:
  • Variation in volumes;
  • Growth of alternative products to wine, particularly among younger generations;
  • Campaigns against the consumption of alcohol;
• Introduction of additional taxes/tariffs on wine, with an impact on prices and the reduction in consumption, and other amendments to laws and regulations affecting consumption rules.

Main mitigation measures:

• Specialised team exclusively dedicated to continuously monitoring customers, market trends, and promoting the quality of the product;
• Portfolio of customisable products based on specifications requested by customers;
• Diversification into other alcoholic beverage segments;
• Continuous reinforcement of the sustainability of the cork stopper;
• Promotion of the "premium image" of the use of cork stoppers;
• Promotion creditability of natural stoppers.

Reputational risk

(Strategic and exogenous risk)

• Risk of internal or external events causing damage to the perception of Corticeira Amorim by stakeholders such as customers, suppliers, investors, employees, financial analysis, communication channels, public entities or the market as a whole;
• Negative impact on the results, resulting from negative perception of the public image of the Group, whether justified or not.

Main mitigation measures:

• Implementation of regular mechanisms to listen to stakeholders, such as surveys or other;
• Strengthening of communication campaigns to promote the attributes of cork products and the creditability of natural stoppers;
• Ongoing investment in the awareness of the Corticeira Amorim brand, in the ethical and professional conformity of conduct of the entire Organisation, and appropriate communication regarding Group practices;
• Carrying out market studies to show the advantages of cork stoppers and products, as well as solutions which incorporate cork and dissemination of the benefits of the use of these products;
• Continual reinforcement of the perception by the market of the natural origin of Cork and, consequently, the natural origin of the products that make up the Corticeira Amorim portfolio, in particular the cork stopper;
• Compliance with certifications and requirements both of purchase materials as well as manufactured products.

54. Description of the procedure for identification, assessment, monitoring, control and risk management.

The internal control system (comprising the risk management, compliance and internal audit functions), currently implemented in the Company, is the result of a continuous and thorough improvement and reflection process within the Company. This process involves the Board of Directors, in particular its Executive Committee, the Risk Committee, the various areas responsible for internal control (Risk Management, Compliance and Internal Audit), the Organisational Development and Strategic Planning area and, as appropriate, the support of specialist external consultants.

In order to ensure compliance with the strategic objectives, the Board of Directors formalised, in 2021, the Risk Management Policy of Corticeira Amorim, which includes the definition of objectives, processes and responsibilities which ensure a solid risk management structure.

The Risk Management Policy (i) establishes the principles, guidelines and responsibilities for adequate identification, analysis and evaluation, handling of and response to risks, (ii) ensures the convergence of risk management with strategic planning, (iii) establishes, in a systematised and cross‑cutting manner, the control and/or mitigation procedures and measures to deal with the main risks for the Group.

An integrated risk management model is adopted, based on a comprehensive risk management approach, which follows a process based on three essential activities:

1. Identify and Evaluate Risks:

• Using internal and external sources, Corticeira Amorim developed a new process for identifying risks that could affect its strategy and performance through an analytical model which is:
  • top‑down (to identify risks of a more strategic‑tactical nature);
  • bottom‑up (to identify risks of a more operational/ transactional nature);
• This process enables the uncertainty and impact of risks and the consolidated net income of Corticeira Amorim to be evaluated;
• The risks are hierarchised and mapped within a risk matrix and appropriate mitigation measures have been defined to minimise the probability of the occurrence and/or the impact of risk, which have been compiled in risk catalogues;
• The risk matrix makes it possible to categorise and rank risks by order of importance and to support decision‑making in the definition of the prioritisation of additional actions beyond the existing controls;
• Given the subjectivity of the attribution of impact/probability criteria to certain risks, indicators or risk gauges (KPI/KRI) are identified for each risk, which workers providing an alert and enabling changes or deviations to be anticipated, which are mapped in the risk catalogue;
• In order to operationalise the risk appetite and tolerance management, global materiality is specified for monitoring risks and KPI/KRI variation bands associated with each risk, as a function of the appetite/tolerance for risk specified by the Board of Directors;
• The magnitude of exposure to the risk is assessed through quantitative and qualitative methods, which consider the individual risk distributions and correlations between risks;
• This process is reviewed annually whenever justified by a certain business contextual change, and the processes formalised in the Multiannual Risk Plan.

2. Monitoring, Controlling and Reporting Risks:

• The 1st, 2nd and 3rd Lines of Defence continually monitor the development in the main risks and the respective KPI/KRI (key performance indicator/key risk indicator);
• Whenever necessary, new mitigation actions are specified to be implemented by the Business Units;
• The Risk Management prepares a regular report with follow‑ups on risk mitigation measures and developments in the KPI/KRI.

3. Supervise, Audit and Review:

• Internal Audit (through annual audits of the Risk Management Process), the Risk Committee (at quarterly meetings) and the Audit Committee (at quarterly meetings) oversee the risk management process, contributing with suggestions for improvements or changes to risks, mitigation measures or KPI/KRI;
• This monitoring and review also includes the evaluation of the company's risk culture, as well as the alignment between risk management and the company's other activities.

The process and responsibilities for the main functions of the risk management process can be summarised in the following table:

Task/Function	Responsibility
Identification/Annual risk revision	Bottom-up: Business Units/Departments Top-down: Board of Directors (coordination of the Risk Management)
Definition of mitigation measures	Business Units/Departments (coordination of the Risk Management)
Updating of the risk matrix and risk catalogues	Risk Management Risk Committee Board of Directors (approval)
Definition of materiality	Risk Management Risk Committee Board of Directors (approval)
Updating the risk monitoring dashboard	Risk Management Risk Committee Board of Directors (approval)
Operational risk management	Business Units/Departments
Risk monitoring	Business Units/Departments (1st Line of Defence) Risks Management (2nd Line of Defence) Compliance (2nd Line of Defence) Risk Committee
Supervise, audit and review	Internal Audit (3rd Line of Defence) Risk Committee Audit Committee
Periodical reporting accompanied by plans (KPI/KRI)	Risk Management Risk Committee
Multiannual risk plan	Risk Management Risk Committee Board of Directors (approval)

55.Core details on the internal control and risk management systems implemented in the Company regarding the procedure for reporting information.

In regard to the preparation and disclosure of information ‑ including consolidated, the Company promotes close cooperation among all those involved in the process to ensure that the production, processing and dissemination of information is adequate and accurate, namely that:

• Its implementation, preparation, and processing comply with all applicable legal requirements and best practices in terms of transparency, relevance and reliability;
• The information has been properly checked both internally and by the appropriate supervisory bodies;
• The information has been approved by the appropriate governing body;
• Its public disclosure complies with all relevant legal requirements and recommendations, specifically those of the CMVM and is made in the following order: first, via the data dissemination system of the Portuguese Securities Market Commission (www.cmvm.pt); second, via the Company's website (www.corticeiraamorim.com); third, by means of a long list of Portuguese and foreign media contacts; and fourth, to Corticeira Amorim's staff and to shareholders, investors, analysts and other stakeholders, whose contacts are stored in a database.

The process of implementing, preparing, and processing information, including consolidated information, is dependent on the transaction recording process and support systems.

With regard to financial information, there is an Accounting Manual and a set of formalised procedures for a number of specific situations related to internal control, which are implemented in Corticeira Amorim. These references contain a set of policies, rules and procedures designed to (i) ensure that homogeneous principles are followed in the process of preparing financial information and (ii) ensure the quality and reliability of financial information. The implementation of accounting policies and internal control procedures, relating to the preparation of financial information, is subject to evaluation by the internal and external auditors. The consolidated financial information by Business Unit is assessed, validated and approved by the management of the respective Business Unit, every quarter. This procedure has been consistently adopted by all the Corticeira Amorim's business units.

Also to be emphasized is a set of rules intended to ensure that the process of disclosure of financial information, including consolidated information, guarantees the quality, transparency and fairness in the dissemination of information.

The consolidated information of Corticeira Amorim is approved by the Board of Directors and presented to the Audit Committee, before its publication.

IV. INVESTOR ASSISTANCE

56. Department responsible for investor assistance, composition, functions, the information made available by said department and contact details.

Corticeira Amorim ensures, through the Investor Relations Officer, the existence of permanent contact with the Capital Markets, promoting the communication of relevant and up‑to‑date information to the financial community. Its activity is based on the principles of transparency, rigour and integrity, respecting the principle of equality of shareholders and preventing asymmetries in access to information by investors, financial analysts and regulatory entities.

The Investor Relations Officer brings together and coordinates the work of professionals from other departments (Consolidation, Management Control, Legal and tax, Administrative, Financial, Sustainability, Risk, Governance, Communication) of Corticeira Amorim, in order to provide impartial and timely replies to all requests from investors (whether shareholder or not).

Role:

The Investor Relations Officer of Corticeira Amorim has the following responsibilities:

• Regular publication of the Company's operation performance evaluation reviews and financial results, including co‑ordination and preparation of their annual public presentation delivered at the Company's registered office (either in person or via conference call);
• Disclosure of privileged information;
• Disclosure of information on qualifying interests;
• Receipt and centralisation of all questions and queries raised by investors and answers to such questions;
• Participation in conferences, roadshows and meetings with investors and analysts.

The following measures carried out in 2023 in the context of contact with investors are especially noteworthy:

• Presentation of annual and biannual business activity and results via audio‑conferencing, thereby promoting interaction in the disclosure of that information;
• Meetings with investors and financial analysts;
• Participation in road shows, both in Portugal and abroad;
• Conducting conference calls and video conferences with investors and analysts;
• Taking part in conferences, held in person and/or virtually.

The management team, whenever possible and appropriate, were involved in the actions described above, both those of Corticeira Amorim and of the various Business Units.

Corticeira Amorim has been using its information technology to regularly disclose and disseminate its economic and financial information, including the Company's operation performance evaluation reports and financial results as well as its answers to specific questions and queries raised by investors.

Type of information made available (in Portuguese and English):

• The Company's name, registered office and other information set out in article 171 of the Portuguese Companies Code;
• Articles of Association;
• Code of Business Ethics and Professional Conduct and Procedure, Anti‑Corruption Code of Conduct and related internal regulations, in particular the form for reporting irregularities;
• Identification of the members of the Company's governing bodies and the investor relations officer;
• Regulations governing the functioning of the corporate bodies;
• Corporate policies and Equality Plan;
• The Office of Investor Assistance, its functions and means of accessing this Office;
• Financial statements, including an annual report on the corporate governance structure and practices;
• Six‑month calendar of corporate events released at the beginning of each half‑year;
• Rules of Procedure of the General Meeting;
• Notices to members of Annual General Meetings to be given during a 21‑day period prior to the date fixed for each meeting;
• Motions submitted for discussion and vote at a General Meeting during a 21‑day period prior to the date of the General Meeting; resolutions adopted and the respective minutes;
• Absentee voting form;
• Proxy form for Annual General Meetings;
• Disclosure of annual, biannual and quarterly information on the Company's business affairs;
• Main financial and activity indicators;
• Price development;
• Annual report on the activities carried out, including the Annual Report, Corporate Governance Report and Sustainability Report;
• Press releases: financial results, confidential information, qualifying interests in the share capital of the Company;
• Business presentations to investors and market analysts.

Contact information:

This department can be reached by telephone at +351 (22 747 54 07) or e‑mail at: corticeira.amorim@amorim.com.

57. Investor Relations Officer.

The Investor Relations Officer of Corticeira Amorim is Ana Carla de Seixas Negrais de Matos.

58. Data on the extent and deadline for replying to the requests for information received throughout the year or pending from preceding years.

The response rate to requests for information is 100%. The reply is provided, on average, within 24 hours (working days), except for highly complex cases (average response time of five working days), that require consultation with external resources to the Company and are, therefore, dependent on the deadlines for the reply from such resources. These cases accounted for less than 5% of total requests for information in 2023. There were no pending replies at the end of the year.

V. WEBSITE

59. Address.

Corticeira Amorim provides a vast range of information on its website www.amorim.com about its corporate structure, business activity and the development of its business.

60. Place where information on the name, public company status, headquarters and other details referred to in Article 171 of the Portuguese Companies Code is available.

Information available at https://www.amorim.com/en/investors/ corporate‑governance/governance‑model/.

61. Place where the articles of association and rules of procedure of the boards and/or committees are available.

Information on the Articles of Association, Corporate Policies, Operating Regulations for governing bodies and specialised internal committees, Code of Business Ethics and Professional Conduct (including the Procedure for Reporting Irregularities) available at https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/.

62. Place where information is available on the names of the corporate boards' members, the Investor Relations Officer, the Office of Investor Assistance or comparable structure, respective functions and contact details.

Information on the members of the governing bodies, the Investor Relations Officer and the Investor Relations Office, their duties and how to access them available at https://www.amorim.com/en/ investors/corporate‑governance/board‑members/.

63. Place where the documents are available and relate to financial accounts reporting, which should be accessible for at least five years and the half‑yearly calendar on company events that is published at the beginning of every six months, including, inter alia, general meetings, disclosure of annual, half‑yearly and where applicable, quarterly financial statements.

Accountability documents available at

https://www.amorim.com/en/investors/financial‑information/ annual‑report/; https://www.amorim.com/en/investors/financial‑ ‑information/other‑financial‑reports/.

Half‑yearly calendar of company events, available at https://www.amorim.com/en/investors/financial‑calendar/.

64. Place where the notice convening the general meeting and all the preparatory and subsequent information related thereto is disclosed.

https://www.amorim.com/en/investors/general‑meeting/ .

65. Place where the historical archive on the resolutions passed at the Company's General Meetings, share capital and voting results relating to the preceding three years are available.

https://www.amorim.com/en/investors/general‑meeting/ .

The purchasing process of Amorim Florestal relies entirely on historical knowledge and assessment of cork from the year it was harvested or the immediately preceding year. Those responsible for managing the properties have the chance to certify their good practices by submitting them to the FSC® certification process.

D. REMUNERATION

I. POWERS TO ESTABLISH

66. Details of the powers for establishing the remuneration of corporate boards, members of the executive committee or chief executive and directors of the Company.

Corticeira Amorim's Appointments, Evaluation and Remuneration Committee, in office since 28 April 2023, is a committee established pursuant to Article 399(1) of the Portuguese Companies Code and Article 19(4) of the Company's Articles of Association that is responsible for setting the remuneration of the members of its governing bodies and specialised internal committees.

The mission of this Committee is also to advise the Board of Directors (i) on the preparation of succession plans and profile recommendations for the members of Corticeira Amorim's governing bodies; and (ii) assessing the overall performance of the Board of Directors, its executive members, the Audit Committee and the internal committees.

The Appointments, Evaluation and Remuneration Committee has no powers regarding the definition of the remuneration of the managers of the Company who are not members of the governing bodies or specialised internal committees. However, the assessment made by this Committee and the opinion on Corticeira Amorim's Remuneration Policy and the consequent Remuneration Report contain the guiding principles for the remuneration of all employees, which should, therefore, potentially and indirectly have an impact on those remunerations.

The Appointments, Evaluation and Remuneration Committee Regulation, approved at the Shareholders' General Meeting of 28 April 2023, sets out the mission and duties of this committee and is available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/.

II. REMUNERATION COMMITTEE

67. Composition of the Remuneration Committee, including details of individuals or legal persons recruited to provide services to said committee and a statement on the independence of each member and advisor.

The Appointments, Evaluation and Remuneration Committee, appointed by the General Meeting of Shareholders on 28 April 2023, in office since then, is made up of:

Chairwoman:	Maria Cristina Galhardo Vilão
	(independent non‑executive director)
Member:	Álvaro José da Silva (independent)
Member:	Rui Fernando Viana Pinto (independent)

The Appointments, Evaluation and Remuneration Committee may decide, pursuant to its regulation, to contract the consultancy services it deems appropriate and adequate for the full performance of its duties. It must ensure that the selection of the respective service providers complies with criteria of competence and independence and that the respective service providers are not contracted to provide any other services to the Company itself or to others in a controlling or group relationship with it, without the specific authorisation of the Appointments, Evaluation and Remuneration Committee. In the financial year under review, no natural or legal person was hired to assist the Remuneration Committee.

68. Knowledge and experience in remuneration policy issues by members of the Remuneration Committee.

Members of the Remuneration Committee were selected on the basis of their wide experience in managing human resources, monitoring and benchmarking other companies' remuneration policies and practices and their knowledge in terms of best remuneration practices and labour law.

Academic and professional qualifications of each member of the Appointments, Evaluation and Remuneration Committee and other important curricular information:

Chairwoman: Maria Cristina Galhardo Vilão

Academic and professional qualifications, as described in section 19, and it should also be noted that, as part of her practice is a lawyer, she has experience in counselling and monitoring the hiring of directors and senior managers of companies, and remuneration policies, incentives and other policies linked to human resource management in those companies, with knowledge of relevant labour and company law in this regard. She chaired the specialised internal committee on the matter of appointments, evaluation and remuneration, from May 2021 to April 2023. She made a significant contribution to defining the policy and remuneration of Corticeira Amorim's governing bodies. Her technical skills and in‑depth knowledge of the issues assigned to this committee ensure the speed and continuity of improvements in the area of remuneration, appointments and evaluations of the aforementioned governing bodies. Nationality: Portuguese • Gender: Female • Age: 59 • Independent

Member: Álvaro José da Silva

Graduated with a Bachelor's degree in Economics from the University of Porto Faculty of Economics, completed a specialisation in Corporate Finance from the Higher Institute of Administration and Management (ISAG – Instituto Superior de Administração and Gestão), having taken various courses and seminars in the areas of balanced scorecard, strategic management, management control, performance evaluation and decision support systems. His professional experience includes (non‑executive) senior management and management control roles, in which he has had the opportunity to learn about various remuneration practices and systems, namely incentive and variable remuneration systems, as well as the associated assessment and remuneration‑setting processes. He has held the position of Head of Santa Casa da Misericórdia de Ovar since 2017, which is one of the largest Misericórdia social assistance providers in Portugal, with net assets of around EUR 12 million. The activity of this institution covers a wide range of areas, supporting and serving more than 1000 people, and employing around 200. He is responsible for defining the policies and guiding practices in the area of human resources, which gives him relevant knowledge and experience in defining metrics for analysing and evaluating performance, and in the definition and implementation of incentive and talent retention programmes.

Nationality: Portuguese • Gender: Male • Age: 71 • Independent

Member: Rui Fernando Viana Pinto

Accounting and auditing course of Instituto Superior de Contabilidade e Administração do Porto (ISCAP). He has been a guest lecturer in economic and tax subjects at the Faculty of Engineering of the University of Porto. He has been a speaker at national and international tax conferences and has written specialised technical articles. His professional experience includes working for the Portuguese Tax Authority, namely as a Senior Officer in the Porto District Tax Department and in the Large Companies Tax Inspection Services Department in Lisbon. He also worked (in a non‑executive capacity) in the tax and contributions area of an international economic group, where he assessed various remuneration practices and systems, namely incentive systems and variable remuneration. The aim of this was to establish the appropriate tax and contributory framework and define administrative and accounting procedures to ensure timely fulfilment of all obligations arising from the remuneration processed, regardless of its form, namely salaries, supplements, bonuses and other incentives.

Nationality: Portuguese • Gender: Male • Age: 69 • Independent

III. REMUNERATION STRUCTURE

This chapter III. Remuneration structure and the following Chapter IV. Disclosure of remuneration is part of the information provided for in Article 26‑G (1 and 2) of the Portuguese Securities Code and, therefore, pursuant to Article 26‑G (8) of the same Code, this replaces the remuneration report.

69. Description of the remuneration policy of the Board of Directors and Supervisory Boards as set out in Article 2 of Law No. 28/2009 of 19 June.

The General Meeting held on 28 April 2023, following motion of the Board of Directors, which submitted to the shareholders the independent Remuneration Policy proposal drawn up by the Appointments, Evaluation and Remuneration Committee, approved the following remuneration policy for the three‑year period 2022‑2024:

• 1. The members of the Presiding Board of the General Meeting shall exclusively receive a fixed remuneration, paid 12 times a year. This is determined based on a proposal from the Appointments, Evaluation and Remuneration Committee (elected pursuant to Article 399 of the Portuguese Companies Code), which shall be in line with this Remuneration Policy, the Company's situation, market practices, the responsibilities of the positions held and the technical and professional credentials demonstrated;
• 1. The remuneration of the Statutory Auditor of Corticeira Amorim is in the form of a provision of services. This is established annually, considering the characteristics of the Company and market practices. The Audit Committee is responsible for selecting the Statutory Auditors to be proposed to the Appointments, Evaluation and Remuneration Committee (elected pursuant to Article 399 of the Companies Code) and is also responsible for proposing their remuneration.

The remuneration of the Statutory Auditor will correspond to the amounts stated in the contract for the provision of statutory auditing services, entered into with the Company, which covers almost all of its subsidiaries.

• 1. The members of the Board of Directors, including an Audit Committee, shall be paid adequate remuneration taking into account:
  2. The individual remuneration package agreed upon between the Company and each Director;
  3. Observance of the principles of internal equity and external competitiveness, taking into account relevant information disclosed by the main Portuguese economic groups on their remuneration policies and practices.
• 3.1 Non‑executive directors

Non‑executive members of the Board of Directors may be remunerated or not, when considering the availability required and the duties actually carried out both within and without Corticeira Amorim.

In the event of being remunerated, the remuneration of non‑executive Directors will exclusively consist of a fixed component payable in twelve instalments per year, defined by the Appointments, Evaluation and Remuneration Committee (elected pursuant to Article 399 of the Companies Code) taking into account this Remuneration Policy, international best practices and the responsibilities and availability required for their specific duties.

The non‑executive members of the Board of Directors who form part of the Audit Committee shall be paid exclusively a fixed remuneration payable in twelve instalments per year, in line with market practice and the responsibilities inherent to the position held and their technical and professional knowledge and skills demonstrated. In line with market practices, the remuneration of the members of the Audit Committee may be differentiated, namely with regard to its chairperson, due to the particular functions which are undertaken.

The remuneration of non‑executive members of the management body shall not include any component, the value of which depends on the performance of the Company or its value, nor any additional benefits.

No contracts with the non‑executive directors have been entered into.

3.2 Executive directors

Whenever appropriate and feasible, the remuneration of the executive members of the Board of Directors should consist of a fixed remuneration, to which is added a variable remuneration, by way of a share in the company's profits, in the form of: (i) an annual bonus based on the performance of the Corticeira Amorim companies and (ii) a multi‑year bonus (period of three years) for achieving the Company's long‑term goals.

3.2.1 Fixed remuneration

The fixed component of the remuneration corresponds to a monthly payment, paid 14 times a year. It is defined by the Appointments, Evaluation and Remuneration Committee (elected pursuant to Article 399 of the Companies Code), taking into account this Remuneration Policy, the nature of the functions and responsibilities assigned and the practices observed in the market in relation to equivalent positions in large national and international companies operating in the same sectors.

3.2.2 Variable remuneration

The award of the variable component of the remuneration is aimed at creating a competitive remuneration framework and implementing an incentive scheme that ensures the alignment of the interests of executive directors with the interests of the Company and its stakeholders, within a perspective of medium and long‑term economic, social and environmental sustainability.

The actual amount of the variable pay shall always depend on the appraisal to be carried out every year by the Appointments, Evaluation and Remuneration Committee (made up mostly of independent members), on the performance of the members of the Board of Directors, analysing their contribution both to the results obtained

in the financial year under review and to the fulfilment of the targets and implementation of the strategies defined by the Company in the medium/long‑term.

The variable remuneration of the executive directors includes two components:

• Annual variable remuneration, by way of profit‑sharing, in the maximum amount of 0.5% of Corticeira Amorim's consolidated net income in the reporting financial year, distributed as follows:
  • 80% of this remuneration is directly linked to consolidated net income targets, with the following award rule: there will only be access to this variable remuneration component if consolidated net income is greater than or equal to 40 million euros; i.e., if consolidated net income is less than this amount, there will be no access to this variable remuneration component;
  • 20% of this remuneration is dependent on targets relating to the Sustainability Index | ESG agreed for the year in question (set out in Annexes I and II attached to the Remuneration Policy, available at https://www.amorim. com/en/investors/corporate‑governance/corporate‑ ‑regulation‑and‑policies/. The award rules are the following: if targets achievement is equal to or greater than 100%, the aforementioned 20% will be awarded (i.e. 0.1% of Corticeira Amorim's consolidated net income for the reporting financial year); if targets achievement is equal to or greater than 75% but less than 100%, the 20% will be reduced to 10%; if targets achievement is less than 75%, then this variable remuneration will not be payable.

The annual variable remuneration is subject to the limits imposed by the Remuneration Policy: the remuneration limit for the chairperson of the Executive Committee is 80% of the sum of the fixed remuneration earned in the respective annual reporting period; this remuneration limit for the other members of the Executive Board is 60% of the fixed remuneration earned in the respective annual reporting period.

Payment of the annual variable remuneration component, if any, may only be made after determining the accounts for the corresponding financial year, with its payment deferred, in four instalments, for a minimum period of three years, the amounts and dates of which are defined as follows:

• ¼ as soon as the accounts for the reporting financial year have been cleared;
• ¼ twelve months after the end of the reporting financial year;
• ¼ twenty‑four months after the end of the reporting financial year;
• ¼ thirty‑six months after the end of the reporting financial year.
• Three‑yearly variable remuneration refers to targets set for each three‑year cycle of Corticeira Amorim, combining the consistency of consolidated net profits and results obtained in the ESG measured by the Sustainability Index, over the reporting period. The three‑yearly variable remuneration has a maximum value of 0.5% of Corticeira Amorim's consolidated net income for the three reporting financial years, distributed as follows:
• 80% of this remuneration is directly linked to consolidated net income targets, with the following award rule: the target will be the average of Corticeira Amorim's consolidated net income for the previous three‑year period plus 5%; if this target is achieved each member of the Executive Committee receives the referred 80% (i.e., 0.4% of Corticeira Amorim's consolidated three‑yearly net income); if that target is not achieved each member of the Executive Committee receives 0.4% of Corticeira Amorim's consolidated three‑yearly net income less 5% for each 1% below target; if the consolidated net income is 10% or more below target, there will be no access to this component of the variable remuneration;
• 20% of this remuneration would be dependent on targets relating to the Sustainability Index | ESG agreed for the three‑year period in question (set out in Annexes I and III attached to the Remuneration Policy, available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/. The award rules are the following: if targets achievement is equal to or greater than 100%, the aforementioned 20% will be awarded (i.e. 0.1% of Corticeira Amorim's consolidated net income for the three reporting financial years as a whole); if targets achievement is less than 100%, then this variable remuneration will not be payable.

The three‑yearly Variable Remuneration is subject to the limits imposed by the Remuneration Policy: for the chairman of the Executive Committee the limit of this remuneration is 80% of the sum of the fixed remunerations earned in the respective three‑year period; for the other members of the Executive Committee, the limit of this remuneration is 60% of the sum of the fixed remuneration earned in the respective three‑year period.

Payment of the three‑yearly variable remuneration component, if any, may only be made after determining the accounts for the financial year corresponding to the last year of the applicable three‑year period, with its payment deferred in four instalments, for a minimum period of three years, the amounts and dates of which are defined as follows:

• ¼ immediately after determining the accounts for the financial year corresponding to the last year of the applicable three‑year period;
• ¼ twelve months after the end of the financial year corresponding to the last year of the applicable three‑ ‑year period;
• ¼ twenty‑four months after the end of the financial year corresponding to the last year of the applicable three‑ ‑year period;
• ¼ thirty‑six months after the end of the financial year corresponding to the last year of the applicable three‑ ‑year period.

Pursuant to number three of Article Nineteen of Corticeira Amorim's Articles of Association, the remuneration, by way of a share in the Company's profits by members of the Board of Directors not belonging to the Audit Committee, cannot exceed three percent for all directors in office. The variable remuneration of each of the executive directors may, therefore, have to be proportionally reduced for this purpose.

The annual and three‑year components of the variable remuneration are both conditional on the Company performing positively over that period, in terms of the economic and financial indicators described above, and the achievement of the medium and long‑term targets referred to above. If the results show a significant worsening of the Company's performance in any of the calculated years, then their value is automatically adjusted. In this latter situation, the (deferred) variable remuneration may not be paid to the executive director. If the variable remuneration, in whole or in part, has been unduly awarded, even though it has been paid its reimbursement may be demanded, whether or not the beneficiary is still employed by the Company.

The determination of the annual and/or three‑year variable remuneration may consider reasonable adjustments regarding exogenous factors and unforeseen economic decisions, as well as those necessary to ensure comparability, and which appropriately provide an incentive for management objectives, provided that the Appointments, Evaluation and Remuneration Committee duly substantiates this decision.

In the event of the departure of an executive director of Corticeira Amorim: (i) before the end of a financial year it shall determine the loss of the annual variable remuneration for that year, (ii) before the end of the three‑year period, it shall determine the attribution only in proportion (pro rata) of the three‑year variable remuneration for that period if this were to be the case, in relation to the financial years which he or she completed in office during the three‑year period of the current three‑year period.

Corticeira Amorim's executive directors do not receive any remuneration for the performance of other management positions in other companies owned by Corticeira Amorim. The members of the Board of Directors are prohibited from concluding contracts with the Company or with its subsidiaries and/or companies in which it holds an interest, which may mitigate the risk inherent to the variability of the remuneration as determined by the Company.

No contracts with the executive directors were entered into.

• 1. The Company's other employees shall be paid adequate remuneration taking into account:
  2. Corticeira Amorim's business is governed by collective bargaining agreements for the cork industry (relating to factory and office workers), entered into by the APCOR — Portuguese Cork Association and by the sector's trade unions;
  3. With regard to professional groups concerning industrial positions that require direct, indirect and administrative types of labour, the basic (fixed) remuneration benchmarks function as minimum fixed remuneration limits. At Corticeira Amorim, these remunerations are complemented with variable bonuses linked to the degree of achievement of certain (individual and team) objectives, such as: allowances indexed to working time (shift, night work); bonuses associated with attendances (monthly and annual attendance) as well as bonuses related to productivity, quality, accident reduction and attendance targets (results, goals and attendance bonus). The objective is to increasingly differentiate and expand this practice, aligning employees in this segment with a logic of objectives and teamwork.

• For middle and senior management positions, the Company values a fixed component, in harmony with market values, and a system of variable remuneration, linked to goals for one year and three‑year cycles, privileging the attainment of individual and team goals, but with a greater weighting in the achievement of Company results.

The aim of this policy and this alignment of incentives is to guarantee to attract and retain professionals with the required skills, thereby reinforcing a Company culture in which individual performance is placed at the service of a greater collective good: the sustainability of the Company.

Depending on the overall results each year, and whenever possible, the Company seeks to award a global and equal bonus to all its employees as a share in Company profits.

• 1. It is not the Company's policy to pay the following to the members of its corporate bodies:
  2. Share allotment plans and/or options to acquire shares of the Company or based on variations in the price of its shares; • Any retirement benefit scheme to members of the governing bodies.
• 1. Payments arising from the termination of office of members of any of the Company's bodies or committees are those stipulated in the general law, and the Company is forbidden from establishing specific agreements that may allow the payment of other compensation.
• 1. The members of the governing bodies of Corticeira Amorim do not receive, by way of remuneration, any pecuniary benefit.

This Remuneration Policy is based on principles of simplicity, clarity and transparency, and is in line with best practices and market trends. It aims to strengthen the values, attributions and conduct of the governing bodies and employees, in support of the development of the sustainable growth strategy of Corticeira Amorim. It also aims to contribute to the achievement of the Company's strategy, through the definition of assessment criteria (indicators proposed by the Appointments, Evaluation and Remuneration Committee) aligned with the strategic objectives of the Company itself, its long‑term interests and its sustainability.

70. Information on how remuneration is structured so as to enable the aligning of the interests of the members of the Board of Directors with the Company's long‑ ‑term interests and how it is based on the performance assessment and how it discourages excessive risk taking.

The Remuneration Policy approved by the General Meeting and described in the previous section is adopted.

With regard to the variable remuneration of the executive directors, described in 3.2.2 of the previous paragraph, the Appointments, Evaluation and Remuneration Committee proposed to the Board of Directors that, in full compliance with the Remuneration Policy for the three‑year period 2022‑2024, it be structured and implemented as follows:

Annual variable remuneration, by way of profit‑sharing, in the maximum amount of 0.5% of Corticeira Amorim's consolidated net income in the reporting financial year, distributed as follows:

• 80% of this remuneration is directly linked to consolidated net income targets, with the following award rule: there will only be access to this variable remuneration component if consolidated net income is greater than or equal to 40 million euros; i.e., if consolidated net income is less than this amount, there will be no access to this variable remuneration component;
• 20% of this remuneration is dependent on targets relating to the Sustainability Index | ESG agreed for the year in question (% green energy, gender equality, energy efficiency, training ‑ access of workers to training, productivity), with the following award rules: if the achievement of the targets is equal to or greater than 100%, the referred 20% will be awarded (i.e., 0.1% of Corticeira Amorim's consolidated net income for the reporting financial year); if the achievement of the targets is equal to or greater than 75% and less than 100%, the referred 20% will be reduced to 10%; if the achievement of the targets is less than 75%, there will be no access to this variable remuneration component.

The annual variable remuneration is subject to the limits imposed by the Remuneration Policy: for the chairman of the Executive Committee the limit of this remuneration is 80% of the fixed remuneration earned in the respective annual reporting period; for the other members of the Executive Committee the limit of this remuneration is 60% of the fixed remuneration earned in the respective annual reporting period.

Payment of the annual variable remuneration component, if any, may only be made after determining the accounts for the corresponding financial year, with its payment deferred, in four instalments, for a minimum period of three years, the amounts and dates of which are defined as follows:

• ¼ as soon as the accounts for the reporting financial year have been cleared;
• ¼ twelve months after the end of the reporting financial year;
• ¼ twenty‑four months after the end of the reporting financial year;
• ¼ thirty‑six months after the end of the reporting financial year.

Three‑yearly variable remuneration refers to targets set for each three‑year cycle of Corticeira Amorim (which must align with the mandates of the Executive Board), combining the consistency of consolidated net profits and results obtained in the ESG dimensions, measured by the Sustainability Index, over the reporting period. The three‑yearly variable remuneration has a maximum value of 0.5% of Corticeira Amorim's consolidated net income over the three reporting financial years. It is distributed as follows:

• 80% of this remuneration is directly linked to consolidated net income targets, with the following award rule: the target will be the average of Corticeira Amorim's consolidated net income for the previous three‑year period plus 5%; if this target is achieved each member of the Executive Committee receives the referred 80% (i.e., 0.4% of Corticeira Amorim's consolidated three‑yearly net income); if that target is not achieved each member of the Executive Committee receives 0.4% of Corticeira Amorim's consolidated three‑yearly net income less 5% for each 1% below target; if the consolidated net income is 10% or more below target, there will be no access to this component of the variable remuneration;

• 20% per cent of this remuneration is dependent on targets relating to the Sustainability Index | ESG agreed for the three‑ ‑year period in question (intensity of water consumption, energy efficiency, energy consumed from controlled renewable sources, weight of consumption of non‑renewable virgin materials, waste recovery rate (not cork), occupational accidents – reduction of the frequency rate, workers' access to training, women in management positions, % of female workers, participation in meetings of governing bodies and committees, participation in training programmes, setting up and functioning of specialised committees on ESG and Risk matters, digital transition).

The three‑yearly variable remuneration is subject to the limits imposed by the Remuneration Policy: for the chairman of the Executive Committee the limit of this remuneration is 80% of the sum of the fixed remunerations earned in the respective three‑ ‑year reporting period; for the other members of the Executive Committee, the limit of this remuneration is 60% of the sum of the fixed remuneration earned in the respective three‑year period.

Payment of the three‑yearly variable remuneration component, if any, may only be made after determining the accounts for the financial year corresponding to the last year of the applicable three‑ ‑year period, with its payment deferred in four instalments, for a minimum period of three years, the amounts and dates of which are defined as follows:

• ¼ immediately after determining the accounts for the financial year corresponding to the last year of the applicable three‑year period;
• ¼ twelve months after the end of the financial year corresponding to the last year of the applicable three‑year period;
• ¼ twenty‑four months after the end of the financial year corresponding to the last year of the applicable three‑year period;
• ¼ thirty‑six months after the end of the financial year corresponding to the last year of the applicable three‑year period.

Pursuant to paragraph 3 of Article 19 of Corticeira Amorim's Articles of Association, the remuneration, by way of a share in the Company's profits by members of the Board of Directors not belonging to the Audit Committee, cannot exceed three percent for all directors in office.

71. Reference, where applicable, to there being a variable remuneration component and information on any impact of the performance appraisal on this component.

The Remuneration Policy approved by the General Meeting and described in section 69 is adopted. The award of the variable component of the remuneration depends on the conditions described in the previous section being met.

The actual amount of the variable remuneration to be attributed to the executive members of the Board of Directors will take into account the evaluation to be carried out annually by the Appointments, Evaluation and Remuneration Committee on their performance and the contribution, both to the achievement of targets and the implementation of strategies defined by the Company, reflected in the Sustainability Index | ESG agreed for the year and the three‑year period in question, respectively.

72. The deferred payment of the remuneration's variable component and specify the relevant deferral period.

The Remuneration Policy approved at the General Meeting and described in sections 69 and 70 is adopted.

The annual and three‑year components of the variable remuneration, according to these terms, are both conditional on the Company performing positively over that period, in terms of the economic and financial indicators described above, and the achievement of the medium and long‑term targets referred to above. If the results show a significant worsening of the Company's performance in any of the calculated years, then their value is automatically adjusted. In this latter situation, the (deferred) variable remuneration may not be paid to the executive director. If the variable remuneration, in whole or in part, has been unduly awarded, even though it has been paid its reimbursement may be demanded, whether or not the beneficiary is still employed by the Company.

The Appointments, Evaluation and Remuneration Committee verified the achievement of each of the targets set out in the Remuneration Policy, in order to determine the variable remuneration to be paid in 2023 (relating to the 2022 financial year). It unanimously concluded that those targets had been achieved and, as a result, approved the annual variable remuneration of the members of the Executive Committee of the Board of Directors of Corticeira Amorim, relating to the results and targets verified in 2022:

• António Rios de Amorim (Chairman), the gross annual amount of 191,447.00 euros;
• Nuno Filipe Vilela Barroca de Oliveira (Vice‑Chairman), the gross annual amount of 101,585.00 euros;
• Cristina Rios de Amorim Baptista (member), the gross annual amount of 129,780.00 euros;
• Fernando José de Araújo dos Santos Almeida (member), the gross annual amount of 86,465.00 euros.

The payment of the annual variable remuneration of each executive member will be made in four instalments, under the terms of the Remuneration Policy in force. The first 25% having been paid in 2023, and the remaining 75% deferred for a period of three years, to be paid in three equal instalments, subject to the Company's positive performance over this period. The first such instalment will be paid on 31 July 2024, the second instalment on 31 July 2025 and the final instalment on 31 July 2026.

73. The criteria whereon the allocation of variable remuneration as shares is based, and also on maintaining Company shares that the executive directors have had access to, on the possible share contracts, including hedging or risk transfer contracts, the corresponding limit and its relation to the total annual remuneration value.

Not applicable. Variable remuneration in the form of shares as described in this section does not exist.

74. The criteria whereon the allocation of variable remuneration as stock options is based and details of the deferral period and the exercise price.

Not applicable. Variable remuneration in the form of stock options as described in this section does not exist.

75. The key factors and grounds for any annual bonus scheme and any additional non‑financial benefits.

There are no other systems of annual bonus or other non‑cash benefits besides those identified in the previous sections.

76. Key characteristics of the supplementary pensions or early retirement schemes for Directors and state date when said schemes were approved at the general meeting, on an individual basis.

Not applicable. There are no supplementary pensions or early retirement schemes.

IV. REMUNERATION DISCLOSURE

77. Details on the amount relating to the annual remuneration paid as a whole and individually to members of the Company's Board of Directors, including fixed and variable remuneration and as regards the latter, reference to the different components that gave rise to same.

The members of the Board of Directors as a whole received gross remunerations from Corticeira Amorim in 2023 of EUR 1,103,674.84, corresponding to EUR 974,245.84 of fixed remuneration and EUR 129,429.00 in variable remuneration, the latter being awarded exclusively to the executive members of the Board of Directors.

Total remuneration broken down by the different components (subparagraph (a)), paragraph 2, article 26 -G of the Securities Market Code:

Directors	Position	Remuneration Paid
		Fixed Component	Variable Component
Executive (a):
António Rios Amorim	Chairman	296,096.00	48,362.00
Nuno Filipe Vilela Barroca de Oliveira	Vice-Chairman	186,085.96	25,896.00
Fernando José de Araújo dos Santos Almeida	Member	157,486.06	22,116.00
Cristina Rios de Amorim Baptista	Member	234,580.98	33,055.00
Non-executive:
Luisa Alexandra Ramos Amorim	Member	-	-
Juan Ginesta Viñas	Member	-	-
José Pereira Alves	Member	33,999.96	-
Marta Parreira Coelho Pinto Ribeiro	Member	21,999.96	-
Maria Cristina Galhardo Vilão	Member	21,999.96	-
António Manuel Mónica Lopes de Seabra	Member	21,996.96	-

(a) An exceptional bonus of EUR 500.00 was also awarded to all the executive directors, which was also awarded to all employees hired up to 30 September 2023 in national companies fully owned by Corticeira Amorim.

Values in euros.

Information on the application of performance criteria for the purposes of variable remuneration (Article 26‑G (2), sub‑paragraph (a)) of the Portuguese Securities Code):

Annual variable remuneration
Variable Remuneration	Criteria	Application of criteria	Weighting
0.4% of the consolidated net income for the financial year	If consolidated net income is less than 40 million euros, this variable remuneration component is not payable	Net profits hit EUR 98 million	100%
0.1% of the Net Income for the financial year, depending on 100% achievement of the Sustainability ESG - Short Term Goals. If achievement is < 100% but > 75% (inclusive) the 0.1% will be reduced to 0.05%; If achievement is < 75%, this variable remuneration component is not payable.	% Green Energy (electricity consumed from renewable or controlled or certified sources); KPI=1.5%	KPI electricity consumed from controlled renewable sources in Portugal was 3.4% in 2022	20%
	Positive annual development of the Gender Equality ratio (in the perimeter of Women vs. Men)	It was 25% in 2021 and 26% in 2022	20%
	Positive development of Energy Efficiency - KPI = +2%/year	Improved by 2.8% in 2022	20%
	Employee access to training (positive annual development)	It was 79% in 2021 and 85% in 2022	20%
	Positive annual development of Productivity	It grew from 61.8 in 2021 to 68.4 in 2022	20%
			100%

Proportion regarding the fixed remuneration and variable remuneration (subparagraph (a)), paragraph 2, article 26‑G of the Securities Market Act:

Directors	Position		Remuneration Paid
		Fixed Component	Variable Component
Executive members:
António Rios Amorim	Chairman	85.96%	14.04%
Nuno Filipe Vilela Barroca de Oliveira	Vice-Chairman	87.78%	12.22%
Fernando José de Araújo dos Santos Almeida	Member	87.69%	12.31%
Cristina Rios de Amorim Baptista	Member	87.65%	12.35%
Non-executive:
Luisa Alexandra Ramos Amorim	Member	-	-
Juan Ginesta Viñas	Member	-	-
José Pereira Alves	Member	100.00%	-
Marta Parreira Coelho Pinto Ribeiro	Member	100.00%	-
Maria Cristina Galhardo Vilão	Member	100.00%	-
António Manuel Mónica Lopes de Seabra	Member	100.00%	-

Annual variation in the remuneration, in the performance of Corticeira Amorim and in the average remuneration of the employees in full‑time equivalent terms for the Corticeira Amorim Group, excluding the members of the management and supervisory bodies, during the last five financial years (subparagraph (c)), paragraph 2, article 26‑G of the Securities Market Code:

Annual variation of remuneration for the members of the Board:

Directors	Component			YEAR
		2019	2020	2021	2022	2023
Executive
	Fixed	239,274.90	239,284.50	239,309.10	239,334.60	296,096.00
António Rios Amorim	Variable	120,400.00	1,000.00	500.00	190,900.00	48,362.00
	Change (%)	-0.02%	-33.19%	-0.20%	79.41%	-19.94%
	Fixed	169,274.95	169,284.50	169,309.10	169,334.60	186,085.96
Nuno Filipe Vilela Barroca Oliveira	Variable	60,400.00	1,000.00	500.00	101,300.00	25,896.00
	Change (%)	-0.04%	-25.86%	-0.28%	59.38%	-21.67%
	Fixed	144,184.95	144,084.50	144,109.10	145,534.60	157,486.06
Fernando José A. Santos Almeida	Variable	66,850.00	8,715.00	60,150.00	86,200.00	22,116.00
	Change (%)	-17.02%	-27.60%	33.68%	13.45%	-22.50%
	Fixed (a)	N/A	N/A	154,749.30	217,634.60	234,580.98
Cristina Rios de Amorim Baptista	Variable (a)	N/A	N/A	500.00	130,410.00	33,055.00
	Change (%)	-	-	-	1.24	-23.10%
Non-executive
Luisa Alexandra Ramos Amorim	(b)	0.00	0.00	0.00	0.00	0.00
Cristina Rios de Amorim Baptista	(a)	0.00	0.00	0.00	N/A	N/A
Juan Ginesta Viñas	(b)	0.00	0.00	0.00	0.00	0.00
José Pereira Alves	Fixed (c)	N/A	N/A	N/A	33,999.96	33,999.96
Marta Parreira Coelho Pinto Ribeiro	Fixed (c)	N/A	N/A	N/A	21,999.96	21,999.96
Maria Cristina Galhardo Vilão	Fixed (c)	N/A	N/A	N/A	21,999.96	21,999.96
António Manuel Mónica Lopes de Seabra	Fixed (c)	N/A	N/A	N/A	21,996.96	21,996.96

(a) Remuneration earned since May 2021 inclusive, following his appointment as a member of Corticeira Amorim's Executive Committee. Until May 2021, he was part of the Board of Directors of the Company as a non‑executive member, without remuneration.

(b)Non‑executive, non‑remunerated directors.

(c) Remuneration earned since April 2021, inclusive, following their election as independent non‑executive members of the new Board of Directors of Corticeira Amorim, including the Audit Committee of which they were members. Remuneration is earned through the set of posts/duties carried out at the Company.

Annual change in the average remuneration of the employees (in full-time equivalent terms) of the Corticeira Amorim Company:

Employees of the Corticeira Amorim Company	YEAR
	2019	2020	2021	2022	2023
Total Remuneration	48,420.00	40,173.00	41,885.00	49,483.00	63,469.02
Change	6.32%	-17.03%	4.26%	18.14%	28.26%

Values in euros.

Values in euros.

Annual variation in the performance of Corticeira Amorim:

Corticeira Amorim's consolidated performance 2019				YEAR
		2019	2020	2021	2022	2023
Sales	Value	781,057	740,113	837,820	1,021,391	985,467
	Change	2.4%	-5.2%	13.2%	21.9%	-3.5%
Current EBITDA	Value	124 724	122 512	134 399	163 954	176 985
	Change	-6.9%	-1.8%	9.7%	22.0%	7.9%
EBITDA/Sales	Percentage	16.0%	16.6%	16.0%	16.1%	18.0%
Net income	Value	74 947	64 326	74 755	98 394	88 897
	Change	-3.2%	-14.2%	16.2%	31.6%	-9.7%
Net Interest-bearing debt	Value	161 091	110 717	48 072	128 988	240 839
	Change	15.9%	-31.3%	-56.6%	168.3%	86.7%

Values in thousand euros.

78. Any amounts paid, for any reason whatsoever, by other companies in a control or group relationship, or that are subject to a common control.

In the financial year 2023, the company Trefinos, S.L. paid Juan Ginesta Viñas, for his position as a director in that company and pursuant to the existing remuneration agreement, the amount of 685,992.56 euros (fixed remuneration: EUR 87,674.40; profit sharing in Trefinos, S.L: EUR 598,318.16). Remuneration in 2022 rose to EUR 554,767.93 (fixed remuneration: EUR 87,674.40; profit sharing in Trefinos, S.L: EUR 467,093.53).

The other members of the Board of Directors did not earn remunerations from other associate or subsidiary companies included in the consolidated accounts of Corticeira Amorim.

79. Remuneration paid in the form of profit sharing and/ or bonus payments and the reasons for said bonuses or profit sharing being awarded.

The amounts awarded to the members of the Board of Directors by Corticeira Amorim Company, under the terms of this note, are referred to in section 77 and were awarded because the conditions for the award of the annual variable remuneration described and calculated under the terms referred to in sections 69 and 70 were fulfilled.

80. Compensation paid or owed to former executive Directors concerning contract termination during the financial year.

No compensation was paid or is owed to former directors regarding the termination of their duties in 2023.

In 2023, the Appointments, Evaluation and Remuneration Committee (an internal committee set up by the Board of Directors) was wound up on 28 April 2023; on the same date, Eugénio Luís Lopes Franco Ferreira ceased to hold office on the Risks Committee (an internal committee set up by the Board of Directors). These severances did not result in any charges for the Company.

81. Details of the annual remuneration paid, as a whole and individually, to the members of the Company's supervisory board for the purposes of Law No. 28/2009 of 19 June.

The members of the Audit Committee earned an overall remuneration for carrying out a set of posts at Corticeira Amorim (Board of Directors, Audit Committee, specialised Internal Committees), the value of which is described in section 77.

82. Details of the remuneration, in the said year of the chairman of the Presiding Board of the General Meeting.

The chairman and the secretary of the Board of the General Meeting earned total remuneration of EUR 9,000.00 and EUR 3,000.00, respectively.

V. AGREEMENTS WITH REMUNERATION IMPLICATIONS

83. The envisaged contractual restraints for compensation payable for the unfair dismissal of Directors and the relevance thereof to the remunerations' variable component.

No contractual restraints are envisaged in accordance with this section.

84. Reference to the existence and description, with details of the sums involved, of agreements between the Company and members of the Board of Directors and managers, that envisages compensation in the event of resignation or unfair dismissal or termination of employment following a takeover bid.

There are no agreements according to the terms set out in this section. No agreements providing for the payment of compensations to the Company's directors and officers (other than where required by law) have been entered into by and between the Company and its Directors or Officers.

Under the terms of the Remuneration Policy referred to in section 69, in the event of the termination of duties of the members of anybody or committee of the Payments arising from the termination of office of members of anybody or committees of the Company, the payments resulting from that termination are those provided for in general law, and the Company is forbidden from establishing specific agreements that may allow the payment of other compensation.

VI. SHARE AWARD AND/OR STOCK OPTION PLANS

85. Details of the plan and the number of persons included therein.

No share award or stock option plans exist in the Company.

86. Characteristics of the plan (award conditions, non‑ ‑transfer of share clauses, criteria on share pricing and the exercising option price, the period during which the options may be exercised, the characteristics of the shares or options to be awarded, the existence of incentives to purchase and/or exercise options).

Pursuant to the Remuneration Policy approved at the General Meeting and as described in section 85, there are no share award or stock option plans in the Company.

The Company believes that if plans of this type are to be implemented, the General Meeting should consider the characteristics of the plans to adopt, as well as their achievement in each financial year.

87. Option rights to acquire shares (stock options) granted to Company workers and employees.

Option rights of this type do not exist in the Company.

88. Control mechanisms for a possible employee‑ ‑shareholder system inasmuch as the voting rights are not directly exercised by said employees.

Control mechanisms of this type do not exist in the Company.

Corticeira Amorim has been investing in different ways to promote gender equality, in particular through the implementation of the "Equality Plan". At the same time, the Company is developing a strategy to boost both the number of female employees in its diverse business units and the number of female managers in decision -making in the various business positions.

E. RELATED PARTY TRANSACTIONS

I. CONTROL MECHANISMS AND PROCEDURES

89. Mechanisms implemented by the Company for the purpose of controlling transactions with related parties.

When not expressly prohibited by law7 , related party transactions follow the provisions of the Regulation and Related Party Transactions available for consultation at https://www.amorim. com/en/investors/corporate‑governance/corporate‑regulation‑ ‑and‑policies/.

As a rule, transactions concluded between the Company and any subsidiary8 or related party9 must be conducted within the scope of the Company's or Subsidiary's current activity and under normal market conditions; transactions that do not meet these requirements are subject to a decision by the Board of Directors or the Executive Committee, preceded by an opinion from the Audit Committee.

Within the scope of the internal control mechanisms for transactions with Related Parties, the following procedures and criteria, considered adequate to guarantee the transparency of the decision‑ ‑making process and the determination of the transactions subject to disclosure, are in place:

• a. By the end of the month following the end of each quarter, the Board of Directors or the Executive Committee, shall verify and inform the Audit Committee of the value and nature of the transactions carried out in the previous quarter with each Related Party, specifying those that have been subject to specific approval by any of those bodies;
• b. The carrying out of Related Parties transactions shall be submitted for a prior opinion to the Audit Committee, followed by a specific decision by the Board of Directors in the following cases:
  • i. Transactions whose value per transaction exceeds one million euros or where the value accumulated during the year exceeds three million euros;
  • ii. Transactions with a significant impact on the business activity of the Company and/or its subsidiaries due to their nature or strategic importance, regardless of the original value;
  • iii. Transactions carried out outside the ordinary course of business of the Company or any subsidiary.

For the purposes of assessing the transaction in question and issuing the Audit Committee's opinion, the Board of Directors or the Executive Committee, as part of the respective delegation of powers, shall provide that body with the necessary information and a reasoned justification.

The assessment to be carried out under the authorisation procedures and prior opinion applicable to related parties' transactions must take into account, among other relevant aspects depending on the specific case, the principle of equal treatment of shareholders and other stakeholders, the pursuit of the interests of the Company, and the impact, materiality, nature and justification of each transaction.

Pursuant to the law, the Company's Articles of Association and the Regulation on Transactions with Related Parties, for assessed transactions subject to prior opinion by the Audit Committee and/ or approval by the Board of Directors, the members of these bodies who are, for the specific or planned transaction, Related Parties must provide all information and clarifications with a view to the full understanding of the relevant transaction, although they are not allowed to participate in the decision and/or the respective vote. It is incumbent upon the Executive Committee (i) to establish mechanisms (subject to the prior appraisal of the Audit Committee) designed to ensure the identification of related party transactions by the Company and by its subsidiaries, and (ii) to inform the Audit Committee with due notice whenever the transaction is subject to a prior opinion from the Audit Committee under the terms of sub‑ ‑paragraph b) of paragraph 1 of this article.

Related party transactions carried out either by the Company or by any of its subsidiaries, (i) that are not carried out in the ordinary course of business or under normal market conditions shall be disclosed to the market in accordance with current legislation and/ or accounting rules in force; (ii) the value of which is equal to or greater than 2.5% of the Company's consolidated assets and which do not meet the requirements set out in the previous section, must be disclosed publicly, no later than at the time they are carried out. Such disclosure should include the identification of the related party and the nature of that relationship, the date and amount of the transaction, the rationale for the transaction and the sense of the Audit Committee's opinion.

These procedures do not apply to:

• i. Transactions carried out between the Company and its subsidiaries, where no Party Related to the Company has an interest in that subsidiary;
• ii. Transactions related to the directors' remuneration, or to certain elements of that remuneration;
• iii. Transactions proposed to all shareholders under the same terms, where equal treatment for all shareholders and protection of the Company's interests are ensured.

The value of these transactions is disclosed annually in the Consolidated Annual Report and Accounts of Corticeira Amorim (section 92 herein).

The procedure by which the Board of Directors or the Executive Committee verifies and submits, each quarter, the value and nature of transactions with Related Parties to the supervisory body, is in place.

90. Details of transactions that were subject to control in the referred year.

As indicated in section 92 above.

91. A description of the procedures and criteria applicable to the supervisory body when same provides preliminary assessment of the business deals to be carried out between the Company and the holders of qualifying interests or entity‑relationships with the former, as envisaged in Article 20 of the Securities' Code.

As set out in section 89 above.

• 7 Article 397 ‑ Business with the company, of the Portuguese Companies Code provides, with binding force, that:
  • 1. The Company is prohibited from granting loans or credit to directors, making payments on their behalf, providing guarantees for obligations contracted by them and granting them advances on remuneration exceeding one month.
  • 1. Contracts concluded between the Company and its directors, directly or through an intermediary, shall be null and void if they have not been previously authorised by decision of the board of directors, the interested party not having a vote, and following a favourable decision by the supervisory board. [Audit Committee]
  • 1. The provisions of the preceding subsections shall extend to acts or contracts entered into with companies that are in a group or control relationship with the Company of which the contracting party is a director.
  • 1. In its annual report, the board of directors shall specify any authorisations it has granted under no. 2 and the supervisory board's report [Audit Committee] shall mention the opinions given on such authorisations.
  • 1. The provisions of 2, 3 and 4 shall not apply where the act is part of the company's own business and no special advantage is granted to the contracting director.
• 8 Company in which Corticeira Amorim held 50% and/or management control (subsidiary).
• 9 Within the meaning of international accounting standards adopted in accordance with Regulation No. 1606/2002, of the European Parliament and of the Council of 19 July 2002 (related party).

II. DATA ON BUSINESS DEALS

92. Details of the place where the financial statements including information on business dealings with related parties are available, in accordance with IAS 24, or alternatively a copy of said data.

Transactions with Holders of Qualifying Interests and Related Entities:

Entity	Other Information	YEAR
		2022	2023
i) transactions whose value per transaction does not exceed €1 M or the accumulated value in the year does not exceed €3 M
Acquisitions to:
Amorim Serviços e Gestão, S.A.	services	517,5	112,4
Quinta Nova N. Sra. do Carmo, Lda.	purchasing and services	21,2	31,7
Amorim Viagens e Turismo, S.A.	services	1,372,2	902,1
Taboadella, S.A.	purchasing and services	27,3	18,3
Kaizen Tech, S.A.	services	809,0	721,7
Amorim Serviços e Gestão, S.A.		-	190,0
Sales and services:
Amorim Serviços e Gestão, S.A.		27,4	46,8
Quinta Nova N. Sra. do Carmo, Lda.		241,3	468,0
Amorim Viagens e Turismo, S.A.		9,6	10,4
Amorim Cork IT, SA (ex-OSI, Lda.)		61,1	30,2
Taboadella, S.A.		61,9	93,2
Amorim Holding II, S.G.P.S., S.A.		-	70,2
Fruticor - Sociedade de Prestação de Serviços, S.A.		-	44,3
Sociedade Agrícola de Cortiças Flocor, S.A.		-	14,2
Outros (*)		-	38,2
Cork acquisitions:
Agolal Sociedade Agro-Florestal, S.A.		-	238,3
Soc. Agrícola de Cortiças Flocor, S.A.		287,8	616,1
Serra da Arriça e Malhadas Sociedade Agro-Florestal, S.A.		444,4	-
Vale de Cabecinhas - Sociedade Agro-Florestal, S.A.		184,8	357,6
S.S.A. Sociedade de Serviços Agrícolas, S.A.		403,8	942,8
ii) transactions with a significant impact on the activity, regardless of their value
Did not exist
iii) transactions carried out exceptionally outside normal market conditions
Did not exist
iv) transactions carried out outside the scope of the current activity of the Company or any Subsidiary
Did not exist
v) transactions subject to prior opinion
Acquisitions of:
Amorim Cork IT, SA (ex-OSI, Lda.)		9,774,1	-
Amorim Serviços e Gestão, S.A.		2,800,0	-
Total		17,043,3	4,946,5

* Transactions with related parties that did not exceed, in 2023, 10 thousand euros.

Values in thousand euros.

There were no transactions which, under the terms of the Law or the Regulations on Transactions with Related Parties, required the prior opinion of the Audit Committee.

Mechanical test of twisting the stopper for effervescent wines consisting of a body of granulated cork and two natural cork discs.

PART II CORPORATE GOVERNANCE ASSESSMENT

1. Details of the Corporate Governance Code implemented

In matters of corporate governance Corticeira Amorim is governed by: (i) current Portuguese legislation, in particular the Companies Code, Portuguese Securities' Code and the regulations issued by the Portuguese Securities Market Commission (CMVM), which may all be accessed on the CMVM's website at; (ii) its own articles of association, which are available on the Company's website at https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/. It also embraces the Corporate Governance Code issued by the Portuguese Institute of Corporate Governance (IPCG), 2018 edition with the 2023 revision, and, although it is only a recommendatory framework, it is an important reference point of good practice and which is also available at www.cgov.pt.

In this report, Corticeira Amorim assesses its practices in relation to the aforementioned IPCG Corporate Governance Code on a 'comply or explain' basis. This report on Corticeira Amorim's corporate governance structures and practices is benchmarked against all legislation, regulations and recommendations to which our Company is subject.

2. Analysis of compliance with the Corporate Governance Code implemented

CHAPTER I

THE COMPANY'S RELATIONSHIP WITH SHAREHOLDERS, STAKEHOLDERS AND THE COMMUNITY IN GENERAL

I.1. The Company explains how its strategy seeks to ensure the achievement of its long‑term objectives and what the main resulting contributions are to the community in general.

Complies. Chapter 17. Annual Performance Assessment of the Consolidated Management Report, and sections 2023 in Figures, 4. Environmental Information, 5. Social Information and 5.2 Community/Society and Innovation of the 2023 Sustainability Report, which form part of the 2023 Consolidated Annual Report.

I.2. The Company identifies the main policies and measures adopted with regard to the achievement of its environmental and social goals.

Complies.

In 2018, Corticeira Amorim aligned the Group's economic, environmental and social goals with the UN Sustainable Development Goals (SDGs), following a stakeholder consultation process. Since then it has designed and implemented the Sustainable by Nature Programme. This programme is based on four fundamental pillars: promote transparency and accountability; promote the environmental characteristics of the product and the cork oak forest; stimulate the development, safety and well‑being of people; develop RDI and leverage economic performance, which is embodied in ten major objectives that guide the actions of the entire Organisation: ethics and integrity, value chain, cork oak forest, climate change, circular economy, green products, development, safety, health and well‑being, community/society and innovation.

All Corticeira Amorim employees are responsible for contributing to achieving the defined priorities, either through the defence and observance of the principles of good governance, also expressed in the Company's Code of Business Ethics and Professional Conduct, or through direct functions in the areas of sustainability.

Corticeira Amorim promotes regular monitoring of the actions envisaged in the Sustainable by Nature Programme, which includes quantitative objectives, performance indicators and control procedures, which guarantee, with rigour and integrity, the reporting on its priorities and progress in these matters.

An Integrated Management System is in place, which includes the management system for cork manufacturing practices, quality, environmental, energy, food safety, forest products and custody practices, occupational health and safety and social responsibility. Quality, environmental, social and safety indicators are assessed,

and possible improvement actions and necessary resources are identified. The management systems are audited internally and externally, according to the schedule defined for each system. An annual compliance audit is also carried out. Evaluation mechanisms and indicators are defined for each of the systems in all establishments not covered by external certifications.

The 2023 Sustainability Report details Corticeira Amorim's environmental and social goals, provides information on the quantitative goals for 2030 and details the progress made on each of these goals in the financial year under review, referring to the formalised policies (disclosed at https://www.amorim.com/en/ investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/), the measures and actions taken and the actual results achieved. These are measured, whenever possible, by technically appropriate indicators with comparisons that make it possible to understand the evolution with reference to the previous financial year, at least.

CHAPTER II COMPOSITION AND FUNCTIONING OF CORPORATE BODIES

II.1. Information

II.1.1. The Company establishes mechanisms to ensure, in an adequate and precise manner, the timely circulation or disclosure of the necessary information to its bodies, the Company secretary, shareholders, investors, financial analysts, other stakeholders and the overall market.

Complies. Sections 29 (I to III), 55, 56 and 58.

II.2. Diversity in the composition and functioning of corporate bodies

II.2.1. The companies establish criteria and requirements in advance, and in the abstract, regarding the profile of members of the corporate bodies appropriate to the function to be performed. This shall, in particular, take individual attributes into account (such as competence, independence, integrity, availability and experience), and diversity requirements (with particular attention to equality between men and women), which can contribute to improving the performance of the body and its balanced composition.

Complies. Part I – Introduction to Chapter B, sections 19 and 26 (Board of Directors and Audit Committee), section 11 (Board of the General Meeting).

Corticeira Amorim adopts policies and practices aimed at promoting diversity in governing bodies (https://www.amorim.com/en/ investors/corporate‑governance/board‑members/).

Corticeira Amorim is the holding company of an economic group based in Portugal, solidly established internationally, through subsidiaries, associate companies and joint ventures. The vast portfolio of products and solutions, it continually develops, responds to diverse markets and A consumers.

The governance of Corticeira Amorim addressing the challenges arising from this framework, advocates a diversity policy in the composition of its corporate bodies, in particular the Board of Directors and the Audit Committee, as a way to:

• Promote diversity in the composition of the respective body;
• Enhance the performance of each member and, jointly, of each body;
• Stimulate comprehensive, balanced and innovative analysis and, consequently, allow informed and agile decision‑making and control processes;
• Contribute to the increase of innovation and self‑renewal of the Company, for its sustainable development and A creation of value for the shareholders and other stakeholders, in the long term.

Corticeira Amorim therefore acknowledges the need to continually promote diversity in its corporate bodies, particularly the Board of Directors and the Audit Committee, especially in the following areas:

• Adequate academic qualifications and professional experience relevant to the performance of the specific corporate position which, in the respective corporate body as a whole, gather together the necessary competences to ensure the capable performance of the role of that body;
• Inclusion of members from different age groups, combining the know‑how and experience of older members with the innovation and creativity of younger members, so as to enable the respective body to steer towards an innovative business vision and prudent management of risks;
• The promotion of gender diversity and, consequently, an adequate balance of sensitivities and style of decision‑making within the respective body.

According to Corticeira Amorim's Appointments Policy (available at https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/), the following are requirements for the appointment of members of the management and supervisory bodies:

Individual requirements:

• i. Good repute, that shall take into account the way in which the person usually manages professional or personal business, or exercises his/her profession, especially in aspects that demonstrate his/her capacity to decide in an ethical, measured and judicious manner, or his/her tendency to meet obligations in a punctual manner. All the circumstances that make it possible to assess professional aptitude for the duties in question are to be taken into consideration. Good repute shall be assessed based on objective criteria, based as much as possible on information about the duties performed by the person in question in previous roles, their most notable behavioural traits and the context in which their decisions were taken.
• ii. Independence: whenever applicable, it is aimed at preventing members of the management body and the supervisory body, and their replacements, from being subject to undue influence from other persons or entities, ensuring conditions that allow them to impartially perform their analysis and in decision‑making duties. When evaluating independence, all situations that may affect the independence of the person in question must be taken into account, namely: (a) positions that the person concerned holds or has held in Corticeira Amorim, or a company within the Group, or in a competing entity; (b) family or similar relationships, as well as close personal, professional or economic relationships that the person concerned has with other members of the management or supervisory bodies of Corticeira Amorim or companies within the Group; (c) whether the person concerned or a person with whom he/she has a close personal relationship, simultaneously holds a management position or a first line reporting position in Corticeira Amorim, Group companies or competing entities; (d) significant business relationships in the last three years with Corticeira Amorim, Group companies or competing entities; (e) roles of high political influence held by the person concerned or a person with whom he/she has a close personal relationship.

Notwithstanding the above, the Audit Committee shall always have a majority of independent members, within the meaning of Article 414(5) of the Portuguese Companies Code. A potential conflict of interest does not necessarily mean that the interested party cannot be considered suitable for the role. It is the responsibility of the Board of Directors or the Appointments Committee, as applicable, when checking the requirements for appointment, to assess whether the risk is significant and suggest possible mechanisms to mitigate or eliminate that risk. The Audit Committee informs the Board of Directors or the Appointment Committee of situations that potentially generate conflicts of interest and supports it assessing the situations identified.

iii. Availability: the members of the Board of Directors/Audit Committee and the Statutory Auditor shall have adequate availability for performing their respective roles. The executive members of the Board of Directors shall perform their roles on a full‑time basis. The non‑executive members of the Board of Directors, the Audit Committee and the Statutory Auditor shall have the necessary availability to fully perform their roles.

Collective requirements:

It is verified, in the collective evaluation of the management body and the supervisory body, whether the composition of each body collectively possesses the appropriate skills and diversity of professional qualifications, as well as the sufficient availability to fulfil their respective legal and statutory duties in all relevant areas of activity. The Board of Directors and the Audit Committee must collectively include members with knowledge, skills and experience in areas relevant to the performance of the corresponding duties in Corticeira Amorim. Notwithstanding the above, the Audit Committee shall always have a majority of independent members, within the meaning of Article 414(5) of the Portuguese Companies Code, with a high‑level of skills and knowledge in the financial, accounting and industrial auditing areas or operational knowledge in Corticeira Amorim's area of activity.

The result of the adoption of these policies is reflected in the composition of the members of their governing bodies, in particular those who are particularly covered by this recommendation.

II.2.2. The management and supervisory bodies and their internal committees have regulations – namely on the exercise of their duties, chairmanship, frequency of meetings, operation and framework of duties of their members – which are fully published in full on the Company's website, and minutes of the respective meetings must be drawn up.

Complies.

The internal regulations of the Board of Directors, the Audit Committee, the Appointments, Evaluation and Remuneration Committee, the Executive Committee and the specialised internal committees are formalised and available for inspection: Risk Committee and ESG (Environmental, Social & Governance) Committee, which regulate, among other matters, all those referred to in this note. Detailed minutes of the meetings of these bodies and committees are drawn up.

The information can be found at https://www.amorim.com/en/ investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/.

II.2.3. The composition and number of meetings in each year of the management and supervisory bodies and their internal committees shall be made public through the Company's website.

Complies. Sections 17 and 23 (Board of Directors); sections 28 and 29 (Executive Committee); section 29 (Risk Committee, ESG, Committee, Appointments, Evaluation and Remuneration Committee); sections 31 and 35 (Audit Committee).

The information can be found at https://www.amorim.com/en/ investors/corporate‑governance/board‑members/.

II.2.4. The companies have adopted a whistleblowing policy that explains the main rules and procedures to be followed for each report and an internal whistleblowing channel that also includes access by non‑employees, under the terms of the applicable law.

Complies. Section 49.

II.2.5. The companies have specialised committees for corporate governance, remuneration, appointment of members of corporate bodies and performance evaluation that are either separate or combined. In the event the remuneration committee provided for in Article 399 of the Portuguese Companies Code has been created, this recommendation may be complied with by granting this committee powers in the aforementioned matters, if not prohibited by law.

Complies. Sections 27, 29 and 67.

II.3. Relations between the Company bodies

II.3.1. The Articles of Association or other equivalent means adopted by the Company establish mechanisms to ensure that, within the limits of applicable legislation, the members of the management and supervisory bodies are permanently assured access to all necessary information for performance evaluation, the status and the prospects for the development of the Company including, in particular, the minutes, supporting documents for the decisions taken, notices and archives of meetings of the executive management body, without prejudice to access to any other documents or persons who may be asked to provide explanations.

Complies. As stated in this report and/or provided for in the internal operating regulations and/or inherently part of the carrying out of duties, the full access to all information and other elements referred to in this recommendation are ensured. Sections 21, 29 and 38.

II.3.2. Each body and committee of the Company ensures, in a timely and adequate manner, the inter‑ ‑organisational flow of information necessary for the performance of legal and statutory powers of each of the remaining bodies and committees.

Complies. Sections 21, 29 and 38, as well as under the terms of the provisions of the internal operating regulations of the bodies and committees (https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/).

II.4. Conflicts of Interest

II.4.1. Through internal rules or equivalent means, members of management and supervisory bodies and internal committees are obliged to inform the respective body or committee whenever there are facts that may constitute or cause a conflict between their interests and those of the Company.

Complies. Sections 20 and 29 and as stipulated in the internal regulations of the Board of Directors and the Executive Committee and, in general terms, Article 3 of the Regulation for Related Party Transactions (https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/).

With regard to the Audit Committee, it should be noted that at Corticeira Amorim, this body is composed exclusively of independent members who are, therefore not associated with any specific interest group within the Company, nor are they under any circumstances likely to affect impartiality of analysis or decision‑ ‑making.

The Appointments Policy also establishes the following rules on prevention, reporting and remedying of situations of conflicts of interest (https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/):

• Members of the management bodies and supervisory bodies, and their alternates, must avoid any situation liable to give rise to a conflict of interest. Corticeira Amorim is aware that conflicts of interest may arise from personal and professional relationships, both present and past. The members of the Board of Directors/ Audit Committee and the Statutory Auditor must immediately disclose any current or potential conflicts of interest that may concern them. Current or potential conflicts of interest must be reported in writing to the Appointments Committee, which will immediately submit its assessment to the Board of Directors, suggesting how the conflict may be satisfactorily mitigated or resolved. Members of the Board of Directors/Audit Committee are required to abstain from voting on any matters in which they have, or may have, conflicts of interest, or in relation to which their objectivity or ability to adequately fulfil their obligations to the institution may be jeopardised.
• Unless authorised by the General Meeting of Shareholders of Corticeira Amorim, members of the Board of Directors may not (i) perform, on their own account or on behalf of third parties, activity(ies) competing with those of Corticeira Amorim; (ii) perform roles in competing company(ies) or to be appointed on behalf of or in representation of such company(ies). When the General Meeting of Shareholders authorises such, it must define the arrangements for access to sensitive information by the director(s) in question.

II.4.2. The Company adopts procedures to ensure that the member in conflict does not interfere in the decision‑making process, without prejudice to the duty to provide information and clarifications requested by the body, the committee or its members.

Complies. Sections 20 and 29 and as stipulated in the internal regulations of the Board of Directors and the Executive Committee and, in general terms, Article 3 of the Regulation for Related Party Transactions (https://www.amorim.com/en/investors/corporate‑ ‑governance/corporate‑regulation‑and‑policies/).

II.5. Related party transactions

II.5.1. The management body discloses, in the governance report or by other publicly available means, the internal verification procedure for transactions with related parties.

Complies. Sections 38, 89, 90 and 91 and as stipulated in the Regulation of the Related Parties Transactions (https://www. amorim.com/en/investors/corporate‑governance/corporate‑ ‑regulation‑and‑policies/).

CHAPTER III SHAREHOLDERS AND GENERAL MEETING

III.1. The Company shall not set an excessively high number of shares required to confer the right to one vote (1) and provides information in the governance report whenever each share does not correspond to one vote (2).

(1) Adopted. Each share is entitled to one vote. Section 12.

(2) Not applicable.

III.2. A company that has issued shares with special plural voting rights identifies, in the corporate governance report the matters which, as provided for in the company's articles of association, are excluded from the scope of plurality voting.

Not applicable. Corticeira Amorim has not issued shares with special plural voting rights.

III.3. The Company shall not adopt mechanisms that hinder the passing of resolutions by shareholders, including fixing a quorum for resolutions greater than that provided for by law.

This practice is considered equivalent to the proposal in this recommendation, i.e., to safeguard the same interests. Section 14.

As detailed in section 14, the Articles of Association of Corticeira Amorim enshrine a quorum for calling meetings to order/taking decisions that is greater than that established in law in the following situations:

• Restriction or withdrawal of pre‑emption rights in share capital increases – the Company's Articles of Association require that the Annual General Meeting be attended by shareholders accounting for at least 50% of the paid‑up share capital (Article 7);
• Removal of a director elected under the special provisions set out in Article 392 of the Portuguese Companies Code ‑ it is necessary that shareholders accounting for at least 20% of the share capital vote against the resolution to remove a Director from office (Article 17);
• In order that resolutions may be passed at an Annual General Meeting convened by shareholders, the meeting shall be attended by members holding shares equivalent to the minimum amount required by law to justify the calling of such a meeting (Article 22);
• Change in the statutory rules on the composition of the Board of Directors – this resolution must be approved by shareholders accounting for at least two‑thirds of the share capital (Article 24);
• Winding‑up the Company such resolution requires the approval of shareholders representing at least 85% of the paid‑up share capital (Article 33).

Therefore, non‑compliance with this Recommendation and the requirement of a higher quorum than that provided for by the Portuguese Companies Code gives shareholders ‑ particularly small or minority shareholders ‑ an important role in a number of decisions that can have significant impact on corporate life (winding‑up), corporate governance model (removal of a Director proposed by minority shareholders and change in the composition of the Board of Directors), ownership rights of shareholders (restriction or abolition of shareholders' pre‑emptive subscription rights in share capital

increases) and an appropriate participation in Annual General Meetings convened by shareholders.

Thus, we are of the opinion that keeping these conditions will contribute to enhance and protect shareholders' rights and role in respect of significant corporate governance matters – values that the Corporate Governance Code seeks to protect.

III.4. The Company implements adequate means for shareholders to participate in the General Meeting remotely, in a manner commensurate with its size.

Does not comply.

The General Meetings held in 2023 did not allow the participation of shareholders by remote means.

The Articles of Association of Corticeira Amorim do not allow, nor do they forbid, taking part in the shareholders' General Meeting by telematic means.

As mentioned in the previous section, Corticeira Amorim encourages the attendance of shareholders at General Meetings, which it considers to be an event of the utmost significance for the Company and its shareholders, as a privileged forum for communication between the Company (via the members of its management bodies) and its shareholders, encouraging transparency, joint reflection, the exchange of ideas and arguments and the alignment of interests. Thus, the high active participation of Corticeira Amorim's shareholders in the General Meetings motivates the Company to maintain the traditional system of participation and voting (in person and vote by correspondence, including e‑mail), ensuring, on the one hand, the participation of all those who cannot or do not intend to participate in person and, on the other hand, enhancing the traditional participation in person, which largely exceeds 80% of the total shares issued.

Therefore, taking this reality as a basis and taking into account the complexity associated with holding General Meetings by telematic means (in particular material resources and technical means, control system and verification of shareholder status), as well as the risks of computer tampering and cybersecurity and the associated costs for both parties to avoid these risks, Corticeira Amorim believes that it is appropriate to maintain current practice with regard to holding and participating in the General Meeting of shareholders.

This position and understanding does not preclude that, considering the specific framework for scheduling/holding the General Meeting, remote participation by shareholders is not possible, as was the case in 2020 and in April 2021, due to the restrictions imposed by the response plan to the COVID‑19 pandemic.

Rules of procedure of the General Meeting:

https://www.amorim.com/xms/files/Investidores/Estatutos\_ Politicas\Regulamentos/20220428\_Regulamento\_da\_Assembleia\ Geral\_EN.pdf.

III.5. The Company also implements adequate means to exercise the right to vote remotely, including by mail and electronic means.

Adopted practice that is considered equivalent to the proposal in this recommendation, i.e., to safeguard the same interests. Section 12.

The Articles of Association of Corticeira Amorim provide for the possibility of voting by electronic means, if received at the Company's registered office by the third business day before the date fixed for the holding of the General Meeting. The chairperson of the Residing Board of the General Meeting shall verify prior to the call for the General Meeting whether the Company is equipped with communication means that can ensure the security and authenticity of the votes cast. If the chairperson of the Presiding Board decides that the technical requirements for voting by electronic means are met, such information shall be included in the Notice calling the meeting.

The presence of the shareholder at the General Meeting revokes the vote sent by mail or by electronic means.

As electronic voting was not allowed in the General Meetings held in 2023, postal voting was allowed, to be received by the Company up to the third working day prior to the day scheduled for the General Meeting, and under the other conditions expressly announced in each Notice convening the General Meeting, which is deemed to safeguard the interests envisaged in this recommendation.

In addition, it is considered that, (i) for the shareholder, the complexity associated with secure electronic voting is disproportionate to voting by mail, which also allows for non‑ ‑presential participation, which can even be revoked by the presence of the shareholder, (ii) both for the shareholder and for the Company, the resulting costs are materially relevant.

Rules of Procedure of the General Meeting: https://www. amorim.com/xms/files/Investidores/Estatutos\Politicas\ Regulamentos/20220428\Regulamento\_da\_Assembleia\_Geral\ EN.pdf.

III.6. The Company's Articles of Association that provide for the restriction of the number of votes that may be held or exercised by a sole shareholder, either individually or jointly with other shareholders, shall also foresee for a resolution by the General Assembly (5 year intervals), on whether that statutory provision is to be amended or prevails — without super quorum requirements as to the one legally in force — and that in said resolution, all votes issued be counted, without applying said restriction.

Not applicable. Section 5. Section 13.

The Articles of Association of Corticeira Amorim do not provide for the limit on the number of votes that each shareholder (either separately or jointly with other shareholders) is entitled to cast or exercise.

III.7. Measures that determine the payment or assumption of fees by the Company in the event of change of control or change in the composition of the Board and that which appear likely to impair financial interests in the free transfer of shares and free assessment by shareholders of the performance of the directors shall not be adopted.

Complies. The Company has not entered into any agreements that determine payments or the assumption of charges by the Company , in the event of a change of control or change in the composition of the Board of Directors, except for the normal "change of ownership" clauses included in certain financing agreements entered into in the ordinary financing of operations and which, on a case‑by‑case basis, have been analysed and their acceptance considered the most appropriate for the Company's interests. The existence of a substantial liquidity reserve (credit lines contracted and not used – see point 4) provides that, even if this clause were exercised, the Company would still be able to finance itself and/or service its debt on time.

Therefore, (i) as this is standard market practice which, among other things, seeks to ensure that financing can be obtained on terms that are more advantageous to the Company; (ii) as financing means are guaranteed that are immediately available in the event of the exercise of these clauses; (iii) as this information is disclosed annually in the Company's accounts, it is considered that the contracting/ maintenance of these clauses is not likely to jeopardise the free transferability of shares nor impair the free appraisal by shareholders of the performance of members of the Board of Directors.

No measures have been implemented specifically targeting the effects described in this recommendation. Sections 4 and 84.

CHAPTER IV MANAGEMENT

IV.1. Board of Directors and Executive Directors

IV.1.1. The management body ensures that the Company acts in accordance with its objective and does not delegate powers as regards the following: i) definition of the strategy and the general policies of the Company, ii) organisation and coordination of the business structure; (iii) matters which are to be considered strategic in view of their amount, risk or special characteristics.

Complies. Section 9 and Regulation for the Functioning of the Executive Committee (available at https://www.amorim.com/ en/investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/).

IV.1.2. The board of directors approves, through internal regulations or through equivalent means, the performance scheme for executive directors applicable to their performance of executive duties in entities outside the group.

Complies. The Board of Directors fixes, through the Regulation for the Functioning of the Executive Committee (available at https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/), the current regime for executives in bodies outside Corticeira Amorim:

The members of the Executive Committee may not hold executive roles, paid or unpaid, in entities outside Corticeira Amorim that carry out activities that compete with, are similar with or conflict with the business activities of Corticeira Amorim. The agro‑forestry activity concerning cork oak forests is not considered for this purpose.

The members of the Executive Committee must punctually inform the Chairman of the Audit Committee and the Chairman of the Board of Directors of any situations where, during their term of office, they perform executive roles in entities outside Corticeira Amorim, especially:

• Activities for the production or marketing of cork products (Products), directly or indirectly, by itself or in partnership with other entities, in Portugal or in geographical areas where Corticeira Amorim's products are marketed;
• The control, or exercise of any rights, in entities that directly or indirectly develop or have any interest in the production or marketing activities of the Products in those geographical areas; and
• The inclusion on corporate bodies, participation in structures or provision of services, directly or indirectly, in entities that develop or have any interest in the production or marketing activities of the Products in those geographic areas.

IV.2. Board of Directors and Non‑Executive Directors

IV.2.1. Without prejudice to the legal duties of the chairperson of the board of directors, if he/she is not independent, the independent directors – or, if there are not enough of them, the non‑executive directors – designate a coordinator from among themselves, namely to (i) act, whenever necessary, as liaison officer with the chairperson of the board of directors and other directors, (ii) ensure that they have all the necessary conditions and means to carry out their duties; and (iii) coordinate them in the evaluation of performance by the management body provided for in recommendation VI.1.1.; alternatively, the Company may establish an equivalent mechanism for such coordination.

Complies. The independent directors have, among themselves, designated José Pereira Alves as the lead independent director so that, in that capacity, he may namely (i) act, whenever necessary, as liaison with the chairperson of the Board of Directors and with the other directors, (ii) ensure that the independent directors have the set of conditions and means necessary to undertake their duties, and (iii) coordinate them in the self‑assessment of performance by the management body as envisaged in recommendation VI.1.1.

IV.2.2. The number of non‑executive members of the management body should be appropriate to the size of the Company and the complexity of the risks inherent in its activity, but sufficient to efficiently ensure the tasks entrusted to them, and the formulation of this suitability assessment must be included in the governance report.

Complies. Section 18 (Board of Directors).

IV.2.3. The number of non‑executive directors must be higher than that of executive directors.

Complies. Section 18.

IV.2.4. The number of non‑executive directors who fulfil the independence requirements must be plural and may not be less than one‑third of the total number of non‑ ‑executive directors.10

Complies. The Board of Directors has six non‑executive directors, four of whom fulfil the independence requirements. Section 19.

IV.2.5. The provisions of paragraph (i) of the previous recommendation shall not preclude the definition of a new director as independent if at least three years have elapsed between the termination of duties in any company body and appointment to the new role (cooling‑off period).

Not applicable. No independent member of the Board of Directors has previously held office on Company bodies, with the exception of those currently in office.

• 10 For the purposes of this recommendation, a person who is not associated with any specific interest group in the Company nor is it likely under any circumstance to affect his or her exemption in terms of analysis or decision‑making, shall be considered independent, in particular by virtue of:
  • i. Have held office for more than twelve years, continuously or alternately, on any company body, this period being counted regardless of whether or not it coincides with the end of the term of office;
  • ii. Having been a worker of the company or company with which it is in a control or group relationship in the last three years;
  • iii. Having, in the past three years, provided services or established a significant business relationship with the company or company with which it is in a control or group relationship, whether directly or as a shareholder, director, manager or leader of a legal person;
  • iv. Being the beneficiary of remuneration paid by the company or company with which it is in a control or group relationship, beyond the remuneration resulting from the exercise of the role of director;
  • v. Living in a common‑law union or being the spouse, relative or similar relationship in a straight line and up to the 3rd degree, inclusive, in a collateral line, of directors of the company, of directors of legal persons directly or indirectly holding qualifying holdings, or of directors of natural persons directly or indirectly holding qualifying holdings;
  • vi. Being the holder of a qualifying holding or representative of a shareholder having qualifying holdings.

CHAPTER V SUPERVISION

V.1. In accordance with the powers conferred on it by law, the supervisory body informs itself of the strategic guidelines and assesses and issues its decision on the risk policy, prior to its final approval by the management body.

Complies. Sections 38 and 52.

V.2. The number of members of the supervisory body and the financial affairs committee must be appropriate to the size of the company and the complexity of the risks inherent in its activity, but sufficient to efficiently ensure the tasks entrusted to them, and the formulation of this suitability assessment must be included in the governance report.

Complies. Section 31 (Audit Committee) and section 29 (Risk Committee) and the Annual Performance Assessment chapter of the 2023 Consolidated Management Report.

CHAPTER VI PERFORMANCE ASSESSMENT, REMUNERATION AND APPOINTMENTS

VI.1. Annual performance assessment

VI.1.1. The board of directors – or a committee with powers in this area, made up of a majority of non‑executive members – annually assesses its performance, as well as the performance of the executive committee, executive directors and Company committees, taking into account the compliance with the Company's strategic plan and budget, risk management, internal operations and the contribution of each member to that end, and the relationship between the bodies and committees of the Company.

Complies. Annual Performance Assessment Chapter of the Consolidated Management Report.

VI.2. Remuneration

VI.2.1. The Company establishes a remuneration committee, whose composition ensures its independence from management, which may be the remuneration committee designated under Article 399 of the Portuguese Companies Code.

Complies. Sections 29, 66, 67 and 68.

VI.2.2. The remuneration of the members of the management and supervisory bodies and company committees is set by the remuneration committee or by the general meeting, on a proposal from that committee.

Complies. Sections 66, 67 and 68.

VI.2.3. The Company discloses in the corporate governance report or the remuneration report the termination of duties of the members of the Company's bodies or committees, indicating the amounts of all Company charges related to the termination of duties, in any capacity, in the financial year in question.

Complies. Section 80.

VI.2.4. In order to provide information or clarification to the shareholders, the chairperson or another member of the remuneration committee, shall be present at the annual general meeting and any other meetings if the respective agenda includes matters concerning the remuneration of the members of the corporate bodies and committees, or if such presence has been requested by shareholders.

Complies. Appointments, Evaluation and Remuneration Committee Regulation (https://www.amorim.com/en/investors/ corporate‑governance/corporate‑regulation‑and‑policies/).

António Manuel Mónica Lopes de Seabra, member of this Committee, was present at the General Meeting of Shareholders of 28 April 2023.

VI.2.5. The remuneration committee is free to decide, within the budgetary constraints of the Company, on the contracting by the Company of the Consultancy services necessary or convenient for the performance of its duties.

Complies. Section 67 and Appointments, Evaluation and Remuneration Committee Regulation (https://www.amorim.com/ en/investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/).

VI.2.6. The remuneration committee ensures that these services are provided independently.

Complies. Section 67 and Appointments, Evaluation and Remuneration Committee Regulation (https://www.amorim.com/ en/investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/).

VI.2.7. The providers of these services will not be contracted by the company itself or by others in a controlling or group relationship with it to provide the company with any other services related to the remit of the remuneration committee, without the express authorisation of the committee.

Complies. Section 67 and Appointments, Evaluation and Remuneration Committee Regulation (https://www.amorim.com/ en/investors/corporate‑governance/corporate‑regulation‑and‑ ‑policies/).

VI.2.8. In view of the alignment of interests between the company and executive directors, a portion of their remuneration is of a variable nature that reflects the sustained performance of the company and does not encourage excessive risk‑taking.

Complies. Sections 69, 70 and 71.

VI.2.9. A significant part of the variable component is partially deferred over time, for a period of no less than three years, associating it, in the terms defined in the company's remuneration policy, with confirmation of the sustainability of performance.

Complies. Sections 69 and 72.

VI.2.10. When the variable remuneration includes options or other instruments directly or indirectly dependent on the value of shares, the beginning of the exercise period is deferred for a period not less than three years.

Not applicable.

It is not the Company's policy to award members of its governing bodies shares and/or stock option plans or plans based on share price variations.

VI.2.11. The remuneration of non‑executive directors does not include any component whose value depends on the performance of the Company or its value.

Complies. Sections 69, 77 and 78.

VI.3. Appointments

VI.3.1. The Company promotes, in the terms it deems appropriate, but in a way that can be demonstrated, that proposals for the election of members of the corporate bodies are accompanied by the reasons stating the adequacy of each candidate for the role.

Complies. Section 29.IV and information below.

The proposals to the shareholders' General Meeting for the election of the members of the corporate bodies are accompanied by a statement of the adequacy of the candidates for the role, namely through their knowledge and academic and professional curriculum, indicating their academic and professional competences, their professional career and relevant positions held or in currently being held, which show the adequacy of the profile, knowledge and curriculum of each candidate for the role in the Company.

Corticeira Amorim's Policy on the Appointment of Members of the Management and Supervisory Bodies has also been formalised. It establishes that it is the responsibility of the Appointments, Evaluation and Remuneration Committee to issue an opinion on material changes to the composition of the management body and the supervisory body, including the election of new members or the reappointment of members, changes to the requirements of the position or appointment of the member to a different position within the body. It also establishes, inter alia, procedures and responsibilities for selection and appointments, as well as appointment requirements, in harmony with other policies and other procedures already in force in matters related to selection and appointments, as well as harmonised with other internal regulations, namely the Company's Articles of Association, Corticeira Amorim's Code of Business Ethics and Professional Conduct, the Diversity Policy and the Human Resources Policy (available at https://www. amorim.com/en/investors/corporate‑governance/corporate‑ ‑regulation‑and‑policies/).

The Appointments, Evaluation and Remuneration Committee was elected at the Shareholders' General Meeting held on 28 April 2023. The election proposal was accompanied by the professional CVs of the members to be elected as well as an opinion drawn up by the Board of Directors on the relevant knowledge, skills and experience for performance of the duties, as well as the fulfilment of the requirements of independence, suitability and availability necessary for the independent and diligent performance of the duties. It also has to considers that, in collective terms, the breadth and diversity of skills, appropriate professional qualifications and gender were ensured.

VI.3.2. The committee for appointing members of governing bodies includes a majority of independent directors.

Complies. The committee with powers to appoint members of governing bodies is the Appointments, Evaluation and Remuneration Committee, which is chaired by an independent non‑ ‑executive director and two other members who are not members of the Board of Directors but fulfil all the independence requirements. Section 68.

VI.3.3. Unless the size of the company does not justify it, the role of monitoring and supporting appointments of senior management11 is attributed to an appointments committee.

Does not comply. Section 29. IV.

The duties of the Appointments, Evaluation and Remuneration Committee concern Corticeira Amorim's governing bodies and do not include the appointment of senior managers.

VI.3.4. The Appointments and Remuneration Committee makes its terms of reference available and promotes, to the extent of its competences, the adoption of transparent selection processes which include effective mechanisms for identifying potential candidates, and that those proposed for selection have the greatest merit, are most adequate to the demands of the function and promote adequate diversity within the Organisation, including equality between men and women.

Does not comply.

In Corticeira Amorim, the Human Resources Departments act in accordance to a set of internally established procedures that advocate and enable:

• The timely and adequate identification of the profiles required/ compatible with a given management role;
• The conduct of the selection processes is based on the adequacy of the profile with a view to the function to be performed and criteria of professional merit;
• The appointment of senior management abides by the diversity policy of Corticeira Amorim (Introduction to Section B. in Part I of this report).

Of note is the Appointments Policy in force at Corticeira Amorim (https://www.amorim.com/en/investors/corporate‑governance/ corporate‑regulation‑and‑policies/), relating to members of the management and supervisory bodies. That policy contains the terms of reference for the selection and appointment of candidates, in particular, the rules and requirements in matters of appointment, change, succession and substitution, and of members of the management body and the supervisory body, as well as the rules on prevention, reporting and remedying of situations of conflicts of interest. The terms of reference for selection and appointment set out in this policy are also the benchmark regarding the selection of senior management.

CHAPTER VII INTERNAL CONTROL

VII.1. The management body discusses and approves the Company's strategic plan and risk policy, including the establishment of limits as regards risk assumption.

Complies. Sections 52 and 54.

VII.2. The Company has a specialised commission or committee made up of risk specialists which reports regularly to the management body.

Complies. Section 29. II.

VII.3. The supervisory body organises itself internally, implementing periodic control mechanisms and procedures to ensure that the risks effectively incurred by the Company are consistent with the objectives set by the management body.

Complies.

The reporting and periodic control mechanisms implemented allow the supervisory body to monitor these matters; the control systems implemented by the Company, considered robust by the supervisory body, ensure that the risks incurred are consistent with the objectives set, particularly in the areas considered most critical, where there are perfectly established/implemented monitoring/control and mitigation plans (for instance, the forest intervention programme aimed at ensuring the availability of the raw material cork, or exchange rate developments). In addition, there is a robust culture of budget management control (which also serves as a scoreboard for evaluating the performance of the Group's upper management).

VII.4. The internal control system, comprising the risk management, compliance and internal audit functions, is structured in terms that are appropriate to the size of the Company and the complexity of the risks inherent to its activity. The supervisory body shall evaluate it and, within the scope of its powers to supervise the efficiency of this system, propose any adjustments that may be deemed necessary.

Complies. Sections 52, 53 and 54.

VII.5. The Company establishes procedures for the supervision, periodic assessment and adjustment of the internal control system, including an annual assessment of the degree of internal compliance with the system, as well as the possibility of amending the previously defined risk framework.

Complies. Section 54.

¹¹ In this Code, senior managers are defined as people who are part of senior management, as defined (under the name "managers") by European and national legislation on listed companies, excluding members of the company's bodies. Corporate Governance Code 2018, revision 2023, IPCG.

VII.6. The Company has established a risk management function based on its risk policy, identifying (i) the main risks to which it is subject in the performance of its business activity, (ii) the probability of their occurrence and the respective impact, (iii) the instruments and measures to be adopted with a view to their mitigation and (iv) the monitoring procedures, with a view to their monitoring.

Complies. Sections 50, 52 and 54.

VII.7. The Company has established processes to collect and process data related to environmental and social sustainability, to alert the management body to the risks the Company is incurring and to propose strategies for mitigating them.

Complies.

Corticeira Amorim implements a rigorous process to guarantee environmental and social sustainability, collecting and processing the relevant data in a comprehensive and efficient manner. The process has different stages, including:

Materiality analysis: a materiality analysis is carried out on a regular basis to identify relevant environmental and social issues. This analysis includes stakeholder consultation in order to integrate their perspectives;

Collecting social and environmental data: the Company regularly collects environmental and social data through different information systems. A process is currently being implemented to optimise data collection and processing, making the process more effective and comprehensive;

Internal working groups: there are internal working groups for each material topic that meet at least once a quarter to monitor the Company's performance on these topics, compare it to the targets set and propose actions. These groups report to the Executive Committee twice a year;

Reporting to the Board of Directors: the progress of actions and the achievement of targets is reported to the Board of Directors at least twice a year. The Board of Directors also set up the ESG Committee, a permanent specialised internal committee responsible for advising, monitoring, supervising and providing strategic guidance to the company in the field of corporate governance, ethics and environmental and social pillars. The ESG Committee is chaired by an independent member of the Board of Directors and is mainly made up of members of the Company's governing bodies, including the Corporate Sustainability Officer, as well as the Head of Corporate Sustainability;

Sustainability Report: the company produces and publishes an annual sustainability report which discloses its strategy, policies, targets, initiatives and performance in relation to environmental and social issues. This report is audited by third parties and approved by the Board of Directors and the General Meeting, as well as being made available on the Company's website for inspection by all stakeholders;

Other Relevant Activities:

• Various units have implemented certified management systems, such as ISO 14001 and ISO 45001;
• Internal and external audits are carried out to assess the environmental and social performance of the different companies that make up Corticeira Amorim;
• The Company and its subsidiaries are governed by a solid and cohesive set of internal regulations and policies which, together with the Company's articles of association and the Code of Business Ethics and Professional Conduct, align the interests of all its stakeholders and promote balanced and prudent management and environmental and social sustainability;
• Participation in sectoral and regional sustainability initiatives;
• Promotion of environmental and social education among employees and other stakeholders.

Corticeira Amorim demonstrates its commitment to environmental sustainability by implementing this set of measures, ensuring the effective management of risks and the implementation of proactive action to mitigate them.

VII.8. The Company provides information on how climate change is taken into account in the organisation and how climate risk analysis is taken into account in decision‑ ‑making processes.

Complies. Section 52 and following information.

The assessment of climate risks is part of an integrated multidisciplinary system regarding risk identification, assessment, prioritisation, treatment and monitoring.

Corticeira Amorim conducted an assessment of the physical climate risks for each of its locations using the ThinkHazard! tool, which identifies the greatest physical hazards to which certain countries are exposed, classifies them by risk level, and also suggests recommendations on solutions for adapting to these risks.

Corticeira Amorim aims to actively manage risks related to climate change. To this end, climate risks with an impact on Corticeira Amorim's business and value chain have already been identified and assessed, and an adaptation plan has been developed, focusing mainly on the Company's own operations. The next step will be to carry out a climate scenario analysis, examine the resilience of Corticeira Amorim's business model in the context of different climate change scenarios, and incorporate climate risks into the management system, as well as complete the climate adaptation plan.

The Company has identified the risk of forest fires and the risk of water stress as the relevant physical climatic risks for the main raw material used in its activities. For this reason, Corticeira Amorim already develops several initiatives that promote the adaptation of cork oak forests to the risks that threaten them. For example, the Forestry Intervention Project aims to preserve cork oak trees and cork oak forest ecosystems, through programmes that promote their resistance to drought, pests and diseases and increase their survival rate.

Also noteworthy is the ability of the cork oak and cork (raw material and products) to retain carbon, which contributes to mitigating greenhouse gas (GHG) emissions. In this regard, the conclusions of research conducted by the Instituto Superior de Agronomia leave no doubt as to the importance of the role of the cork oak tree and the ecosystem surrounding it: for every tonne of cork produced, the cork oak forest sequesters more than 73 tonnes of carbon dioxide.

The use of Corticeira Amorim products also contributes to mitigating climate change, both because of their capacity to retain carbon and because they replace more energy‑intensive alternative products. The industrial processing of cork, that has been harvested from cork oak trees, is the best way to guarantee the preservation and development of cork oak forests, ensuring their economic viability. The cork oak forest is today the centre of attention, with specific legislation to protect it, as well as various programmes by non‑governmental organisations that seek to preserve the forest by improving and certifying forest management practices. It is essential to foster the development of subericulture that is capable of promoting the crucial role played by the cork oak forest and, at the same time, fuel the growth of the market for cork products. The facts described above will therefore provide an opportunity for differentiating cork products.

Further information on Corticeira Amorim's risk analysis (physical and transitional) can be found in Chapter 1. General disclosures/1.5 Risk management and internal controls over sustainability reporting, in Chapter 4. Environmental information/4.2 Climate change/4.2.1 Strategy and management of risks and opportunities and in Chapter 11. Alignment with the TCFD.

VII.9. In the governance report, the Company reports on the terms in which artificial intelligence mechanisms have been used by the governing bodies as a decision‑ ‑making tool.

Complies. Section B. Governing Bodies and Committees (introduction).

VII.10. The supervisory body gives its opinion on the work plans and resources concerning the internal control system services, including the risk management, compliance and internal audit functions, and may propose any necessary adjustments.

Complies. Sections 38 and 50 to 52.

As can be seen in the sections mentioned above, the internal control system implemented at Corticeira Amorim relies on significant and productive interaction with the supervisory body, which, at any time, may request clarifications or propose adjustments that it considers necessary.

VII.11. The supervisory body receives reports drawn up by the internal control services, including the risk management, compliance and internal audit functions, at least with respect to matters concerning accountability, the identification or resolution of conflicts of interest and the detection of potential irregularities.

Complies. Section 38.

CHAPTER VIII ACCOUNTING INFORMATION AND LEGAL REVIEW

VIII.1. Information

VIII.1.1. The rules of the supervisory body establish that it must supervise the adequacy of the preparation and disclosure of information by the management body, including the adequacy of accounting policies, estimates, judgements, relevant disclosures and their consistent application between financial periods, duly documented and communicated.

Complies. Section 38.

VIII.2. Statutory audit and supervision

VIII.2.1. The supervisory body, by means of regulations, defines supervisory procedures to ensure the independence of the Statutory Auditor, in accordance with the applicable legal rules.

Complies. The Audit Committee has established an internal procedure that covers these matters.

VIII.2.2. The supervisory body is the main liaison with the statutory auditor of the Company's accounts and the first recipient of the relevant reports, and is responsible, inter alia, for proposing the relevant remuneration and ensuring that the proper conditions for the provision of services are provided within the Company.

Complies.

It is the responsibility of the Audit Committee to propose the Statutory Auditor and the respective remuneration, within the framework of the Remuneration Policy approved at the shareholders' General Meeting.

VIII.2.3. The supervisory board annually assesses the work performed by the statutory auditor, its independence and suitability for the performance of the functions and proposes to the competent body its dismissal or termination of the contract as to the provision of the services when there is a valid basis for said dismissal.

Complies. Section 38.

Mozelos, 25 March 2024

The Board of Directors of

CORTICEIRA AMORIM, S.G.P.S., S.A. António Rios de Amorim (Chairman) Nuno Filipe Vilela Barroca de Oliveira (Vice‑Chairman) Fernando José de Araújo dos Santos Almeida (Member) Cristina Rios de Amorim Baptista (Member) Luisa Alexandra Ramos Amorim (Member) Juan Ginesta Viñas (Member) José Pereira Alves (Member) Marta Parreira Coelho Pinto Ribeiro (Member) Maria Cristina Galhardo Vilão (Member) António Manuel Mónica Lopes de Seabra (Member)

Since 2013, the Forestry Intervention Project has been dedicated to promoting and disseminating new subericulture practices. At the Herdade de Rio Frio, we have invested in new planting techniques and forest management support to achieve a more efficient and resilient cork oak forest.

Sustainability Report

05

MESSAGE FROM THE CHIEF SUSTAINABILITY OFFICER

Dear stakeholder,

Corticeira Amorim presents its Sustainability Report for 2023, which reflects its contribution to sustainable development and value creation for all its stakeholders. It highlights the significant progress made in 2023 in the environmental, social and governance areas, demonstrating ambition, initiative and responsibility in the face of current global challenges.

In 2023, we consolidated our leading position in the area of environmental sustainability. Through sustainable forest management, we have impacted more than a thousand hectares of cork oak forest, improving its resilience, cork production and biodiversity. In the fight against climate change, we would like to emphasise the 9.1% reduction in energy consumption, the increase to 68.3% in the use of controlled renewable energy and the 8.8% reduction in CO2 emissions. We have fulfilled our commitment to the circular economy with a significant reduction in nonrenewable virgin material consumption: 88.7% of the materials used in our business are renewable.

Recognising the importance of a safe, healthy and inclusive working environment that promotes personal and professional development and progress, we have reinforced our commitments to the social dimension. We have implemented a rigorous occupational safety programme and a plan to promote equality, diversity and inclusion. Aware of the importance of the younger generations, both in the short and medium term, we have improved our practices with respect to our younger employees. One particular example was the launch of the Young@Cork Programme, which promotes integration and development for our young people through training, sharing and interaction with the various company teams, in a variety of contexts.

Our culture and practices have been recognised by Randstad's Employer Brand Research 2023, according to which Corticeira Amorim is among the 20 best companies to work for in Portugal, ranking third in the industry sector.

We have strengthened our governance model, increasing independence and transparency, and ensuring our business is managed responsibly and ethically. We have also broadened our internal regulations on ethics and conduct (codes, policies and procedures).

With over 150 years of experience, Corticeira Amorim is the global benchmark for transforming cork into high value-added products and solutions. Our passion for cork, combined with our constant innovation, allows us to offer our customers solutions that stand out for their performance and novelty, as well as their environmental value, since they also contribute to climate regulation.

Our activity continues to be aligned with the United Nations Sustainable Development Goals (SDGs) and the 2030 Agenda. We realise that sustainable development is essential for the future of the planet and people, and that our contribution is an important one. Our culture, practices and results are contagious and encourage many of our stakeholders to similarly contribute to the five SDG pillars: People, Planet, Prosperity, Peace, and Partnership. This is a common purpose that can only be achieved through the action and commitment of all.

We would like to thank everyone who makes this journey with us: our people, our partners and our stakeholders, for their invaluable contribution to Corticeira Amorim's success. Together, we will build a more sustainable future.

Kind regards, Cristina Rios de Amorim Board member and Chief Sustainability Officer

2023 KEY FACTS

Corticeira Amorim

• 1 in the world for cork processing

• 150 years of history

• €985,467 K consolidated sales
• 93% sales outside Portugal

Business Units

• 5 Business Units
• 1,150,000 m2 of cork yards
• 5,600,000,000 stoppers sold
• 10,000,000 m2 installed capacity in floor & wall coverings
• 195,440 blocks and cylinders produced
• 60,000 m3 installed capacity in insulation cork

World presence

• 28 countries
• 28 industrial units
• 10 raw material preparation units
• 3 agroforestry units
• 61 distribution units
• 7 joint ventures
• 30,000 customers in over 100 countries
• 4,958 workers
• 70% workers in Portugal

Cork, cork oak tree, cork oak forest

• 2,100,000 ha in the western Mediterranean basin

• 200 years average lifespan of a cork oak tree
• 100,000 people depend on cork oak forests

• €1,300/ha/year average estimated value of the ecosystem services associated with a properly managed cork oak forest

• 1/36 biodiversity hotspots
• • 73 tCO2/1t cork produced
• Barrier against fires / Regulates the hydrological cycle / Protects the soil and decreases the risk of desertification

Strategy

• 2021 most recent materiality review
• 12/17 SDGs are aligned with the sustainability strategy
• 10 strategic goals | 31 main targets | 7 quantitative targets by 2030 (Portugal) | 9 quantitative targets by 2024 (Portugal)

Ethics and integrity

• 2006 date of first Sustainability Report
• 89% of stakeholders agree that Corticeira Amorim presents a clear vision of its economic, social and environmental responsibilities
• Internal codes, policies and regulations
• UN Global Compact participant

Value chain

• 1st FSC® chain of custody certificate in the cork industry (2004)
• 100% of non-cork suppliers covered by a supplier evaluation programme
• 96% of purchases of cork and cork products from controlled origin
• 72% of production units certified as complying with the
• International Code of Cork Stopper Manufacturing Practice • 57% of production units with chain of custody certification for forest products

Cork oak forest

• €56,925 K value of forest estate acquisitions
• 8,181 ha forest estates under management (Herdade da Venda Nova, Herdade da Baliza and Herdade de Rio Frio)
• 1,405 ha intervened forest estates under management (+1,024 compared to 2022)
• 387,675 cork oak trees planted (+233,065 compared to 2022)
• 10 commitments to biodiversity (Act4nature Portugal)

Climate change

• 76.7% renewable energy
• 68.3% controlled renewable energy
• 4.3% energy efficiency
• 72,578 tCO2eq emissions avoided
• 220,819 tCO2eq emissions generated by the business activity and value chain (-11.0% compared to 2022)
• Photovoltaic project: 2021-2024 | + €11 M | 20% total electrical energy consumption in Portugal

Circular economy

• 92.2% sustainable materials (renewable and recycled) | 88.7% renewable materials
• 100% use of cork
• 87.2% waste recovery rate (non-cork)
• 11,693 t industrial waste produced (-20.5% compared to 2022)
• 915 t recycled cork (equivalent to 203.3 million cork stoppers)
• 5 continents with cork recycling programmes (including the projects Green Cork in Portugal, Ecobouchon in France and ETICO in Italy)

Green products

• 63.9% consolidated sales with life cycle assessments and carbon footprint studies
• 62.2% de consolidated sales with a positive impact on climate change mitigation
• CORK STOPPERS: 1st choice for customers who want better quality and to contribute to the mitigation of climate change
• FLOOR AND WALL COVERINGS: 100% of floor & wall coverings with indoor air quality certification and contributions to sustainable construction certifications, LEED/BREEAM
• COMPOSITE CORK: > 500 applications for various sectors, allying innovation and circular economy practices
• INSULATION CORK: 0% additives in products that are simultaneously 100% natural, recyclable, reusable and long-lasting

Development

• 93.2% employees covered by collective bargaining agreements
• 81.7% workers with training
• 27.1% women workers
• 23.4% women in management positions
• 40.0% women in the Board of Directors of Corticeira Amorim, S.G.P.S., S.A.

Safety, health and well-being

• 42.9% production units covered by ISO 45001 or SA 8000 certifications
• 9.5 lost time injury frequency rate (-33.9% compared to 2022)

Community/society

• 92.2%of economic value generated distributed to stakeholders
• 2.17×production multiplier in Portuguese economy
• 7×direct value of the activity in Portugal multiplier (includes impacts of cork oak forest's ecosystem services)
• 39% contribution to total exports from the municipality of Santa Maria da Feira
• 51% of impact on employment in the forestry sector in Coruche and Ponte de Sor
• Green Cork: 106 thousand trees planted (1.6 million since 2008); 6.4 million recycled cork stoppers (117.5 million since 2008); 81 thousand students/users involved (681 thousand since 2008)

Innovation

• €11,253 K average R&D+I investment
• 7 joint ventures

Sustainable finance

• €119,200 K green financing allocated
• €126,600 K green financing agreed
  • €40,000 K in green bonds
  • €11,600 K in green commercial paper programme
  • €20,000 K in sustainability linked commercial paper programme
  • €20,000 K in green commercial paper programme
  • €35,000 K in green commercial paper programme

European Union Taxonomy

• 4.0% eligible and aligned turnover (92.6% not eligible)
• 13.0% eligible and aligned CAPEX (80.7% not eligible)
• 5.9% eligible and aligned OPEX (92.2% not eligible)

AWARDS AND RECOGNITION

Each year, Corticeira Amorim strengthens its ESG policies and practices and expands its engagement and communication with its stakeholders. The entities that assess Corticeira Amorim recognise this evolution, considering the Company a leader in its sector and a model in terms of contributions to sustainability. Some of these organisations and the recognitions obtained are listed below (as of 31 December 2023).

Entity	Classification range	Corticeira Amorim's classification	Last updated
Climate Change 2022 (www.cdp.net)	Leadership (A-/A) Management (B-/B) Awareness (C-/C) Disclosure (D-/D)	Management B	December 2022
	Platinum - top 1% (overall score between 78 and 100) Gold - top 5% (overall score between 70 and 77) Silver - top 25% (overall score between 59 and 69) Bronze - top 50% (overall score between 50 and 58)	Gold 72	February 2023
(www.ecovadis.com)
(www.sustainalytics.com)1	Negligible (0-10) Low (10-20) Medium (20-30) High (30-40) Severe (40+)	Low risk 11.4	October 2023
	Leader (AA/AAA)	Leader	January 2023
	Average (BB/BBB/A) Laggard (CCC/B)	AA
(www.msci.com)2

• 1 Copyright ©2023 Morningstar Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legaldisclaimers.
• 2 The use by Corticeira Amorim of any MSCI ESG RESEARCH LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Corticeira Amorim by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided 'AS-IS' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

VOLUNTARY COMMITMENTS

Corticeira Amorim actively participates in discussion meetings with national and international entities on sustainable development of the geographical regions in which it operates. In various cases, the Company's representatives are members of the governing bodies of these initiatives and associations, collaborating in the promotion of their initiatives and generating significant and proactive results. Of the numerous associations, it is worth highlighting the following:

Global Compact Network Portugal

Portuguese network of the UN Global Compact (UNGC), which gathers the initiative's participants based or operating in Portugal. Its work is to share knowledge and methodologies between projects, programmes and tools in order to contribute to furthering implementation of the Ten Principles and create opportunities for intersectoral initiatives to develop in action, defence and dissemination of the UN SDGs. https://unglobalcompact.org/whatis-gc/participants/149253-Corticeira-Amorim-S-G-P-S-S-A

BCSD Portugal

Business association, with broad sectorial representation in Portugal, which is part of the world network of the WBCSD - World Business Council for Sustainable Development, the largest international organisation working in the area of sustainable development. https://bcsdportugal.org/en/

BRP – Business Roundtable Portugal

Association with representation of the largest Portuguese business groups, it has a single purpose: to accelerate Portugal's economic and social growth to ensure a fairer, more prosperous and more sustainable country.https://www.abrp.pt/

Smart Waste Portugal

Association whose objective is to contribute to the production and dissemination of knowledge in the area of waste; to stimulate initiatives that value cooperation between entities operating in the area of waste; promote and support activities and projects of its members that contribute to the pursuit of the association's objectives.https://smartwasteportugal.com/

ForestWISE –Collaborative Laboratory for Integrated Forestry and Fire Management

Association whose mission is to promote the integrated management of forests and fire, based on (joint) research and development activities, knowledge and technology transfer, acting as a link between industry, the academic world and the Public Administration, with impacts on the forest and fire sectors and on society. https://www.forestwise.pt/en/

Sustainable Wine Roundtable

Global and independent coalition that aims to establish a universal sustainability standard for wine. https://swroundtable.org/

Associação Plataforma para a Construção Sustentável

A non-profit association involving a network of R&D institutions, municipalities and the significant business community in the Habitat sector, whose aim is to establish a specialisation in Sustainable Construction. It is also the managing body of the Sustainable Habitat Cluster. The Cluster has embraced the Sustainability topic as a dynamic and transversal factor for its strategic development, with the aim of contributing towards a true "Sustainable Habitat". https://clusterhabitat.pt/en/

IB-S (Institute of Science And Innovation for Bio-Sustainability)

Research unit at the University of Minho, dedicated to the sustainability of the built and natural environment. http://ib-s.uminho.pt/

APCOR – Portuguese Cork Association

Business association in the cork sector that represents, promotes, disseminates and researches the Portuguese cork industry. https://apcor.pt/en

AEM – Associação de Empresas Emitentes

The AEM's main mission is to represent and defend the collective interests of companies that issue securities admitted to trading on a domestic regulated market. With the creation of the AEM, the Portuguese institutional system now has a private organisation capable of promoting a competitive domestic capital market and, in particular, of monitoring, in an integrated and transversal way, the processes involved in preparing regulatory instruments that have a direct or indirect impact on the activity of listed companies. A common and informed voice for listed companies, the AEM plays a fundamental role in finding the most appropriate solutions for the proper development of the capital market and the Portuguese economic system through constructive dialogue with national and European public authorities and the public disclosure of their positions. www.emitentes.pt

AEP - Associação Empresarial de Portugal, Chamber of Commerce and Industry

The AEP's mission is to defend the interests of companies and offer services that boost their competitiveness. Its work with companies, through services designed to meet the needs identified by its technical teams or based on consultation with its members, is characterised by its diversity, multi-sectoral nature and national scope. www.aeportugal.pt

COTEC PORTUGAL - Associação Empresarial para a Inovação

The purpose of COTEC PORTUGAL is to boost relations between all the entities involved in the National Innovation System, prioritise innovation policies and encourage and motivate companies to invest in research and development. Its activities include: promoting reflection on the impact of innovation processes on economic development; raising awareness among companies and encouraging them to invest in Research, Development and Innovation; promoting and encouraging links between centres of knowledge and the business community, particularly with regard to ensuring companies' human resources have the relevant qualifications; and leading the way in boosting relations between companies and public and private institutions involved in the National Innovation System. www.cotecportugal.pt

IPCG - Instituto Português de Corporate Governance

The IPCG's mission is to promote effective corporate governance in Portugal, foster transparency, responsibility and corporate ethics in order to maximise the creation of long-term value for all stakeholders, and increase corporate governance literacy across the various sectors in the Portuguese economy. The IPCG promotes a culture of responsibility and transparency, encouraging organisations to disclose their governance practices and financial and non-financial performance in a clear and accessible manner. It also develops and disseminates best practices, publicising relevant research and collaborating with experts to identify and promote effective governance practices. It works with legislators, regulators and associations in the various sectors to promote legislation and policies that improve transparency, accountability and corporate ethics. www.cgov.pt

ANPC - Associação Nacional de Proprietários Rurais, Gestão Cinegética e Biodiversidade

The ANPC's mission is to defend, enhance, promote and represent, at national and international level, the interests of landowners, the production, management and sustainable exploitation of wild and natural resources, such as hunting and fishing, the protection and enhancement of the environment and natural and built heritage, and the conservation of nature and biodiversity, as well as the promotion and development of related tourism. www.anpc.pt

Produtech - Production Technologies Association -Production Technologies Cluster

The aim of this association is to implement collective efficiency initiatives and strategies aimed at developing companies that produce production technologies, fostering their global competitiveness in a sustained manner, particularly in terms of internationalisation, innovation and expertise, and promoting, in a structured manner, the emergence of agglomeration economies, through co-operation and networking between companies, as well as between companies and other agents that are important for development in their respective sectors, namely enterprises, sectoral bodies, entities within the national scientific and technological system and other organisations in the main sectors using these technologies. It also promotes and manages the Production Technologies Centre. www.produtech.org

Passivhaus Portugal Association

The Passivhaus Portugal Association was created to implement and develop the Passivhaus concept in Portugal, with the following objectives: to disseminate (promote and develop) the Passive House concept in Portugal and contribute to energy independence and sustainability in Portugal. Passive House is a construction concept defining a high-performance standard that is energy efficient, healthy, comfortable, affordable and sustainable. www.passivhaus.pt

APFAC - Associação Portuguesa de Fabricantes de Argamassas e ETICS

APFAC's main mission is to support and represent mortar and ETICS system manufacturers in Portugal, defending their interests and rights before public and private organisations. The association aims to promote the appropriate use of mortars and ETICS systems, championing their quality and safety. APFAC's mission also involves promoting training and education, helping to develop technical and scientific knowledge among professionals and users in the mortar and ETICS systems sector. www.apfac.pt

APQ - Associação Portuguesa para a Qualidade

The purpose of the APQ is to promote and disseminate theoretical and practical knowledge in the field of Quality and Excellence in Portugal. The APQ carries out its activities either individually or in partnership with other entities, seeking to present innovative and stimulating solutions, creating value for its Members and contributing to the sustained development of Portuguese society. www.apq.pt

Porto Climate Pact

Designed to serve everyone, with the ultimate goal of defending the global climate system, it subsists largely on the basis of membership among different entities operating in Porto. https://pactoparaoclima.portodigital.pt/wp-content/ uploads/2022/11/Porto-Climate-Pact\_ENG\_v02.pdf

Charter of Principles of the Porto Protocol

International foundation, with hundreds of members spread throughout the wine value chain and around the world, whose mission is to build a network of change agents and viable solutions, with the aim of making the wine industry's response to the climate emergency more collaborative, faster and more robust. https://www.portoprotocol.com/

Charter of Principles of BCSD Portugal

An initiative promoted by BCSD Portugal that establishes the fundamental sustainability commitments that the subscribing companies voluntarily adopt for themselves and which they seek to extend to their value chain, within their sphere of influence. https://bcsdportugal.org/wp-content/uploads/2022/11/Charterof-Principles\_BCSDPortugal\_ENG.pdf

ACT4NATURE PORTUGAL

Business initiative promoted by BCSD Portugal in which participating companies assume individual and joint commitments for the conservation of biodiversity and ecosystem services. https://www.bcsdportugal.org/act4nature-portugal

50 Sustainability & Climate Leaders

Project promoted by the TBM Media Group, with content distributed by the Bloomberg group, that aims to promote the exchange of ideas on how to achieve greater sustainability by focusing on recent technological solutions, favouring disruptive innovation and fostering socially responsible leaders. https://www.50climateleaders.com/home/

Pacto Mais e Melhores Empregos para os Jovens

An initiative promoted by the José Neves Foundation that has received support from 50 Portuguese companies. Investing in young people is investing in the future and, for this reason, the signatories pledge to take action by 2026 to improve youth employment, implementing concrete measures aimed at, among other things, increasing the percentage of young people hired, ensuring more of them remain with the company, guaranteeing them quality jobs (with a level of pay and duties appropriate to their qualifications), supporting and developing youth training and giving young people a voice by increasing their participation on company boards. https://www.joseneves.org/pacto

© Lara Jacinto, 2020

The cork oak forest (montado) regulates hydrological cycles, protects against soil erosion, fosters significant biodiversity, reduces the risk of desertification, acts as a barrier against forest fires, serves as an important natural carbon sink and is an engine of economic, environmental and social development.

CORK, CORK OAK TREE, CORK OAK FOREST

As the world's largest cork transformation group, Corticeira Amorim has contributed, like no other player, to the overall business, market, economy, innovation and sustainability of the entire cork industry.

Cork

Cork is the name commonly given to the bark or protective cover that acts as the epidermis of the cork oak tree (Quercus Suber L.). It is a renewable, biodegradable, 100% natural and recyclable material that has truly exceptional properties. Cork cells, grouped in a characteristic alveolar structure, identical to that of a beehive, are filled with a mixture of air-like gases, whose walls are primarily coated with suberin (a kind of natural wax) and lignin (a threedimensional macrocell that provides resistance to microbiological attacks). Other compounds found in the cellular system of cork include polysaccharides, ceroids and tannins, albeit to a lesser extent. Each cork plank contains around 60% of gaseous elements - which explains its extraordinary lightness. These small cushions of air endow cork with remarkable compressibility, enabling it to recover its original shape after being compressed. Due to cork's resilience, compression does not cause expansion elsewhere in the material, which makes it a material that can be used in seals and joints and in thermal, acoustic and anti-vibration insulation. Cork's elasticity gives it a superior level of tolerance to changes in temperature and pressure. Its lightness and chemical inertia make cork an ideal closure for wines. It resists humidity and ageing, without any deterioration.

Cork oak tree

Annual cork production3

The cork oak tree from which cork is extracted belongs to the oak family. Its value is based not only on the products extracted from the tree, but on all of the agricultural, forest, silvopastoral and hunting activities that revolve around the cultivation of cork oak trees. The regular harvesting of cork makes a fundamental contribution to the environmental, economic and social sustainability of the Mediterranean region's rural areas, where the cork oak may be found.

The process of harvesting cork is called "descortiçamento" (stripping) in Portuguese. It occurs without deforestation and takes place during the period of greatest vegetative activity: from mid-May to the end of August. Nowadays, cork harvesting is mostly done by hand, with absolute precision, by specialised professionals who use a special axe, ensuring that the tree is not damaged.

The cork oak is a slow-growing tree, which can live for up to 200 years, which means that it can be stripped several times over the course of its life, keeping the tree alive. The first harvest only takes place when the trunk of the tree reaches a perimeter at breast height (PBH) of 70 cm. The cork removed in this first harvest is called "virgin cork". After nine years, "secondary cork" is harvested. After these two extractions, and every nine years, "amadia cork", is harvested. This cork has a regular structure with a smooth interior and exterior and the characteristics and qualities suitable for the production of stoppers.

³ Food and Agriculture Organization (FAO) (2010); AGRO.GES (2019)

The cork oak forests ("montados de sobro" and "florestas de sobreiros" in Portuguese) occupy an estimated area of more than 2.1 million hectares in the Western Mediterranean basin. Portugal, Spain, Morocco and Algeria harbour about 90% of the distribution area of the species. Every year, approximately 200 thousand tonnes of cork are extracted from the total area of cork oak forests. Portugal, which harbours one third of the global area of cork oak trees, is the world's largest cork producer.

The cork oak forest is an ecosystem characterised by its multifunctionality, combined with a variety of integrated forestry and agricultural production systems, as well as by the quality of the products supplied and by management practices that have a reduced impact on the environment.

This forest ecosystem mainly consists of cork oak trees (Quercus suber L.) in regions where the Atlantic influence is greater. The plant biodiversity of this ecosystem is made up of a rich herbaceous layer and several shrub species, including aromatic and medicinal species, which play an important role in the nutrition of animals and people.

In this type of forest, it is also possible to find a great diversity of animal species, which contributes to the high biodiversity that characterises the ecosystem. The cork oak forest combines the aforementioned elements with agricultural and livestock activity in the same space, allowing the benefits of the biological interactions between them to be maximised.

It is possible to find different types of landscapes in this ecosystem: forest, whose focus is on cork extraction, and a landscape in which agricultural activities, such as cereal cultivation, and livestock activities, such as cattle grazing, are mainly carried out.

The cork oak forest plays an important role in promoting ecological functions such as soil conservation, carbon storage and water retention, due to the vast biodiversity that exists and the multifunctional exploitation that characterises it. It also offers a set of economic and environmental goods and services, related to agro-silvopastoral activities and others, such as ecotourism, which strengthen the economic importance of this ecosystem.

5 https://wwfeu.awsassets.panda.org/downloads/cork\_rev12\_print.pdf

⁴ https://www.apcor.pt/wp-content/uploads/2015/10/Brochura\Ambiente\\_ EN.pdf#page=18

1. GENERAL DISCLOSURES

1.1 BASIS FOR PREPARATION

This Sustainability Report, included in Corticeira Amorim's Consolidated Annual Report, reflects the Company's commitment and approach to sustainability issues, in particular its performance in relation to the Sustainable by nature programme, which establishes its goals for 2030. The good practice of regular reporting, adopted since 2006, fosters transparency and encourages the adoption of sustainability principles, both in the value chain and among the main stakeholders.

Corticeira Amorim breaks down the information reported into different levels of granularity, when necessary for a proper understanding of its material impacts, risks and opportunities. The levels of disaggregation can be: i) by country, when there are significant variations, meaning presenting the information in a more aggregated fashion would obscure material information; ii) by location or significant asset, when the material impacts, risks and opportunities are associated with a specific location or asset; iii) by other parameters such as gender, professional category, among others, when relevant to understanding the material impacts, risks and opportunities. To define the level of disaggregation for reporting, the Company took into account the disaggregation adopted in its materiality assessment.

To ensure better readability, the figures are sometimes rounded to zero or one decimal place. However, the calculations have been made considering the actual performance figures.

This document has been prepared in accordance with the guidelines of the Global Reporting Initiative, the GRI Standards (GRI), and also reports on Corticeira Amorim's performance in relation to the sustainability metrics defined in the Sustainable by nature programme (Chapter 3. Sustainable by nature programme), which may include topics and metrics different from those of the GRI framework. It also complies with the legal requirements introduced by Portugal's Decree-Law No. 89/2017, of 28 July, constituting, under the terms of Article 508-G of the Commercial Companies Code, the Consolidated Non-Financial Statement of Corticeira Amorim, S.G.P.S., S.A. It also complies with Article 8 of the EU Taxonomy Regulation and Delegated Act of the Article 8.

As Corticeira Amorim is a group of companies spread across the globe, there are difficulties in implementing uniform information collection systems, particularly in smaller companies. Therefore, the sustainability disclosures in this report relate to the Corticeira Amorim companies that are part of the sustainability perimeter and are prepared on a consolidated basis by the parent company. A plan is underway to increase the number of companies covered by this report. Further information on the companies included in the sustainability perimeter can be found in Chapter 9. References and scope of the report/9.1 Companies included in the consolidation of sustainability indicators.

Different teams in the Business Units (BUs) and the support areas, in particular the sustainability division, collect the information relating to the selected key performance indicators and prepare the report in accordance with GRI and other applicable benchmarks. The Board of Directors, the Executive Committee (CECA) and the ESG Committee (CESG) supervise drawing up the Sustainability Report and are informed of the recommendations resulting from the independent assurance work. The information contained in this report has been audited by ERNST & YOUNG AUDIT & ASSOCIADOS - SROC, S.A. The Board of Directors approves the approach and scope of external verification of the Sustainability Report.

Navigating the Sustainability Report:

• Corticeira Amorim Chapter 2
• Sustainable by nature programme and alignment with the UN SDGs – Chapter 3
• Environmental information, including European Union Taxonomy – Chapter 4
• Social information Chapter 5
• Governance information Chapter 6
• Sustainable finance Chapter 7
• Consolidated sustainability indicators Chapter 8
• References and scope of the report Chapter 9
• GRI Table Chapter 10
• Alignment with the TCFD Chapter 11
• Independent assurance report Chapter 12

To improve access and transparency, Corticeira Amorim has made a number of other documents available, which will be itemised throughout the report.

This document is available at https://www.amorim.com/en/ sustainability/reports/ and any clarification may be requested from Corticeira Amorim, using the contact form available at: https://www.amorim.com/en/contacts/.

1.2 THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES

Corticeira Amorim's Board of Directors, which includes the Chief Sustainability Officer (CSO), is responsible for promoting ESG (Environmental, Social & Governance) topics in the business, and approving the strategic objectives and initiatives and priority actions.

The CECA is responsible for overseeing the governance of sustainability issues and integrating ESG issues into the business. At least twice a year, the CECA meets to analyse the approach to ESG topics, the definition of targets, the performance and the review of the reporting.

The Board of Directors has set up the CESG, a permanent specialised internal committee, which is responsible for providing advice, monitoring, supervision and strategic guidance to Corticeira Amorim in the field of corporate governance, ethics and environmental and social pillars. The committee's attributions have been established in the respective Regulations. The CESG is chaired by an independent non-executive member of the Board of Directors and is mainly composed of members of the Company's corporate bodies, including the CSO, and includes the Head of Corporate Sustainability (HCS) as a permanent guest.

The management of ESG issues is led by the CSO and coordinated by the HCS, together with the other support divisions, including Human Resources, Procurement and Energy, Shipping Logistics, Compliance, Tax, Risk Management, Information Technology and Systems, Consolidation and Reporting, Sustainability and

Corporate Governance. These support areas work together to ensure ESG activities are aligned and effective throughout the Company. Each BU has a sustainability officer who reports directly to the BU's Chief Executive Officer (CEO), who is responsible for implementing initiatives and actions, monitoring and reporting on performance.

The competences and knowledge of the members of the Board of Directors, CECA and CESG are described in Chapter B – Corporate Boards and Committees of the Corporate Governance Report.

All of Corticeira Amorim's workers are responsible for contributing to the achievement of the defined priorities, either through the defence and observance of the principles of good governance, also enshrined in the Company's Code of Business Ethics and Professional Conduct, or through direct functions in the areas of sustainability.

The Board of Directors is responsible for preparing and submitting to the General Shareholders' Meeting the financial statements, including the Sustainability Report. The General Shareholders' Meeting deliberates on these documents, including the Sustainability Report, which are approved as long as they receive a majority of favourable votes from the shareholders present or represented at the General Meeting.

Board of Directors' Regulations and ESG Committee Regulation available at:

1.3 INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES

Performance evaluation of the executive directors

The Remuneration Policy for the three-year period 2022-2024, approved by the General Meeting of Shareholders on 28 April 2023, recommends, in relation to the executive directors, the attribution of a variable component in remuneration, with a view to creating a competitive remuneration framework and implementing an incentive system that ensures the alignment of the interests of the executive directors with those of the Company and its respective stakeholders, from a perspective of economic, social and environmental sustainability in the medium-long term.

The variable remuneration of the executive directors includes two components: annual variable remuneration and three‑ ‑yearly variable remuneration. Both components of the variable remuneration are conditional on the Company's positive performance over that period, in terms of the economic and financial indicators and the medium and long‑term targets described in the Policy, which includes ESG dimensions measured by the Sustainability Index, so their value is automatically adjusted if the results show a significant deterioration in the Company's performance in any of the last financial years. In the latter situation, the variable (deferred) remuneration may not be paid to the executive director. If the variable remuneration, in whole or in part, has been unduly awarded, even though it has been paid its reimbursement may be demanded, whether or not the beneficiary is still employed by the Company. For more information, see Point 25. Predefined criteria for assessing executive directors' performance and Point 70. Information on how remuneration is structured so as to enable the aligning of the interests of the members of the Board of Directors with the Company's long‑term interests and how it is based on the performance assessment and how it discourages excessive risk taking, both from the Corporate Governance Report.

Performance evaluation - heads of the Energy, Sustainability, Human Resources and Industrial Operations divisions

The variable remuneration of the heads of the Energy, Sustainability, Human Resources and Industrial Operations support areas is linked to the fulfilment of specific objectives in the respective divisions, assessed based on defined performance indicators, namely:

• Energy: energy efficiency improvement, reduction in total energy consumption and implementation of an emissions reduction initiative;
• Sustainability: progress on objectives related to the Sustainable by nature programme, which includes progress and compliance with climate-related objectives and the Company's performance in sustainability indices;
• Human Resources: recruitment of women to management positions and to the workforce in general, access to training for employees and safety indicators;
• Industrial operations: safety indicators relating to the frequency and severity of accidents.

Remuneration Policy available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

1.4 STATEMENT ON DUE DILIGENCE

Minimum social safeguards require the implementation of a management system that strictly monitors compliance with the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational and the United Nations Guiding Principles on Business and Human Rights, as well as the Fundamental Conventions of the International Labour Organization (ILO) and the International Bill of Human Rights. In accordance with the 2021-2024 plan, in 2023 Corticeira Amorim reinforced its due diligence practices regarding respect for Human Rights by creating a Human Rights due diligence plan in accordance with the fundamental principles of the United Nations (UN) Guiding Principles on Business in the implementation of the "Protect, Respect and Remedy" framework.

The Monitoring Report on Respect for Human Rights identifies the main mechanisms and procedures in place to guarantee the protection of Human Rights. This Programme is continually being evaluated in order to respond to changes in the company's strategy, business model, activities, commercial relations, operational, procurement and sales contexts and includes the establishment and periodic review of robust policies and procedures.

Human Rights due diligence: (i) should cover adverse Human Rights impacts that the business enterprise may cause or contribute to through its own activities, or which may be directly linked to its operations, products or services by its business relationships; (ii) will vary in complexity with the size of the business enterprise, the risk of severe Human Rights impacts, and the nature and context of its operations; and (iii) should be ongoing, recognizing that the Human Rights risks may change over time as the business enterprise's operations and operating context evolve. The result of Corticeira Amorim's sustainability due diligence process is considered in the Organisation's assessment of its material impacts, risks and opportunities and this is done before new operations, practices, processes and products are introduced.

Corticeira Amorim is committed to acting in a responsible and transparent manner, adopting sustainable practices at all levels of the Organisation and committing to work collaboratively with its stakeholders in order to promote sustainable practices.

In 2024, the Company intends to further bolster its Human Rights due diligence and develop its environmental due diligence.

Human Rights Policy, Purchasing Policy, Code of Ethics and Conduct for Suppliers and Monitoring Report on Respect for Human Rights available at:

1.5 RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING

Corticeira Amorim has an integrated multidisciplinary system aimed at identifying, assessing, prioritising, treating and monitoring risks. This internal control system covers risk management, compliance and internal auditing, and includes effective procedures for detecting and preventing irregularities. The system is continually improved, as a result of an internal analysis involving the Board of Directors, namely its CECA, the Risk Committee and the various support areas, such as Risk Management, Compliance and Organisational Development, Strategic Planning and Sustainability, while support is also received from specialised external consultants when necessary. The Internal Audit support division plays a crucial role in monitoring and evaluating the effectiveness of the controls implemented, as well as planning and carrying out risk-based audits and performing tests to assess effective management and risk prevention.

The Risk Committee is a permanent specialised internal committee, appointed by the Board of Directors, composed mainly of members of the governing bodies and chaired by an independent, non-executive director, who is responsible for advising the Board of Directors on monitoring risk management activities at Corticeira Amorim.

The Company has a catalogue of identified risks and defined mitigation measures, to minimise the probability of their occurrence and/or impact, as well as indicators or risk assessments for each risk, which act as monitoring instruments and enable changes or deviations to be anticipated.

Corticeira Amorim has defined the impact of a risk on the consolidated results as being a material risk. A substantive strategic or operational impact is determined in Corticeira Amorim's risk management process as one that produces an effect on consolidated results that exceeds five million euros.

Therefore, given the specificities of Corticeira Amorim's framework and business model - in particular: the development of an essentially stable business; (ii) the know-how and skills accumulated over 150 years of activity, continuously enhanced through innovation, development and training programmes; (iii) diversification in terms of products, currencies, markets, the vast portfolio of clients (iv) the effective management and monitoring of the business' critical factors by the Board of Directors and other functions related to the management of these factors; (v) the robust control systems implemented and (vi) the dual corporate supervision (Audit Committee (CAU) and Statutory Auditor) - it can be concluded that Corticeira Amorim's internal control system (comprising Risk Management, Compliance and Internal Control) is structured and sized appropriately for its activity.

The substantive impacts with strategic or operational effects on Corticeira Amorim's business activity are defined in the Risk Management Policy.

For more information on internal control and risk management, see Chapter C – Internal Organisation / III. Internal control and risk management of the Corporate Governance Report.

Risk Management Policy available at:

2. CORTICEIRA AMORIM

Founded in 1870, Corticeira Amorim stands out as one of the most innovative and entrepreneurial multinationals of Portuguese origin and a world leader in cork processing, having recognised the vast potential of this 100% natural raw material early on and positioning cork as a material of choice in an increasingly open, informed and prosperous society. Operating under the maxim "not just one market, not just one customer, not just one currency, not just one product", Corticeira Amorim has continuously expanded its portfolio, entering new markets and developing innovative products. With a strong commitment to sustainability, which manifests itself in both positive climate regulation and the development of value‑ ‑added, nature‑based solutions, the Company serves challenging and technological industries, including the aerospace, automotive, construction, sports, energy, interior design, and wine and spirits sectors. Under the management of the fourth generation of the Amorim family, which preserves values such as pride, ambition, initiative, sobriety and attitude, the Company invests significant sums in research, development and innovation (R&D+I), every year, including an investment in R&D+I of 11.3 million euros this year. In 2023, Corticeira Amorim recorded consolidated sales of 985.5 million euros, 93.2% of which were made internationally.

2.1 BUSINESS MODEL

The business model implemented is founded on an integrated and vertical process that uses circular economy principles in order to minimise waste crated. Key to operations, cork is obtained from a network of producers with whom the Company establishes medium and long-term partnerships, promoting good forest management practices and there by maximising the ecosystem services of the cork oak forests, namely the continuous production of good quality cork.

2.2 BUSINESS UNITS

The Company has a broad portfolio of cork-based products for different markets and applications and is structured into five BUs. Amorim Florestal, Amorim Cork, Amorim Cork Flooring, Amorim Cork Composites and Amorim Cork Insulation.

BU and products	Markets	Main references	Sales*
Amorim Florestal Responsible for overall and integrated management of the company's value chain, it plays a key role in promoting synergies between the various business units to ensure optimisation of the flow and quality of cork	Agroforestry and cork preparation	1,150,000 m2 of cork yard 8,181 hectares of forest estates under management	€234.0 M
Amorim Cork World leader in the production and supply of cork stoppers, this BU has its own distribution network, which places it in a unique position to provide the ideal stopper for any wine or spirits segment and type, anywhere in the world	Still and sparkling wines, spirits, beer and cider	5,600,000,000 stoppers sold/year	€759.4 M
Amorim Cork Flooring Operating in more than 60 countries, it offers a range of high-quality and versatile flooring solutions with comfort and sustainability credentials, which promote higher quality of life, through the provision of greater acoustic and thermal insulation	Floor & wall coverings	10,000,000 m2 installed capacity in floor & wall coverings/year	€92.2 M
Amorim Cork Composites Innovation is the driving force of this BU that proposes to redesign the world in a sustainable manner, reusing and reinventing materials with applications in a wide array of different areas	Aerospace, mobility, maritime, energy, sealing, construction, sports and recreational surfaces, flooring, home, office and leisure goods, toys and footwear	195,440 blocks and cylinders produced/year	€119.8 M
Amorim Cork Insulation Dedicated to the production of 100% natural insulation materials that offer exceptional technical performance, products that combine virtually unlimited durability, low embodied energy, and an A+ indoor air quality rating with excellent simultaneous thermal, acoustic and anti-vibration insulation properties	Sustainable construction / insulation, interior and exterior design	60,000 m3 installed capacity in insulation cork/year	€18.2 M

* Sales of the BU

2.3 WORLD PRESENCE

Headquartered in Portugal, Corticeira Amorim operates on five continents, with a global presence through various operations. These include not only industrial activities, such as raw material processing and agroforestry management, but also product distribution and strategic joint ventures. The Company also has an extensive network of market agents, which plays a crucial role in extending its global reach. The Company's shares are listed on Euronext Lisbon.

PORTUGUESE MULTINATIONAL, WITH ITS HEAD OFFICE IN MOZELOS, SANTA MARIA DA FEIRA

PU = raw material preparation units and industrial units

2.4 CHARACTERIZATION OF THE VALUE CHAIN

Corticeira Amorim actively promotes ethical commitments and environmental, social and economic responsibility throughout its business and value chain, encouraging, as will be mentioned throughout this report, the responsible use of resources, the application of circular economy practices, the reduction of waste and the amount of raw materials used, the minimisation of packaging and the prioritisation of recycled, recyclable and/or compostable materials.

The Company has adopted a verticalized business model that spans all stages of production, from the purchase of the raw material, through inbound logistics and distribution (transport) to operations, recycling and marketing of various cork-based products. In addition, being aware of the urgent need to protect the cork oak forests, the Company also has an agroforestry division, investing directly in forest estates that contain cork oaks.

2.4.1 SUPPLY CHAIN AND TRANSPORT AND LOGISTICS

As well as innovating, improving existing products and developing new ones, Corticeira Amorim also seeks out environmentally responsible packaging solutions. To this end, the Company works to reduce the use of non-renewable virgin materials and creates designs that enable recycling into long-lasting products.

The main raw material used in Corticeira Amorim's activities is cork – a renewable and biodegradable material, both 100% natural and recyclable, which is extracted without deforestation – and cork products account for around 83.8% of total revenue. It also uses other natural resources such as wood, water and energy, as well as other raw materials such as chemicals and plastics, as well as services such as transport.

In 2023, Corticeira Amorim made purchases of cork and non-cork materials from 3,565 direct suppliers around the world; around 70.9% of the value of these purchases was in Portugal.

The Company considers it essential to establish a stable chain of suppliers of raw materials, in particular cork, and transport services, in order to guarantee good sustainability practices, both at the point of origin and in the operating processes. To this end, and in order to promote responsible production and consumption, Corticeira Amorim works with suppliers who are committed to adopting sustainable practices and favours those that adopt good ESG practices. The Organisation has a process for selecting and assessing the environmental and social impact of suppliers, which is described in Chapter 6. Governance information/6.1 Business conduct/6.1.2 Metrics and targets/ 6.1.2.2 Management of relationships with suppliers.

With regard to cork and cork products, the preparation and implementation of the Company's multi-annual procurement policy is the responsibility of the Amorim Florestal BU, which ensures an optimal flow of all types of cork raw materials used in the other BUs for their respective products and applications. Cork is primarily purchased in the Mediterranean basin, in particular: Portugal, Spain, France, Italy, Morocco, Tunisia and Algeria, involving a large number of suppliers with whom the Company maintains medium-long term partnerships. It is also in these regions that the majority of Corticeira Amorim's operations are located, and it promotes conservation and social and economic investment in these areas. The geographical distribution of purchases, by purchase value, is as follows: 96.0% in Portugal and Spain, 3.3% in North Africa and 0.7% in other locations.

The management of suppliers and purchases of all non-cork products, services, contractors and transport is the responsibility of Corticeira Amorim's cross-cutting support areas Procurement & Energy and Shipping Logistics. From a global perspective,

management focuses on the pursuit of excellence in the goods purchased and services provided, in line with the Organisation's strategic objectives, with the aim of progressively adding more value in terms of sustainability, while maintaining commitment, credibility, integrity (ethics) and the pursuit of excellence throughout the Company's activities.

Upstream transport and logistics have a significant economic and environmental impact on the business, particularly in terms of transport, labour and infrastructure costs, pollution and greenhouse gas emissions, so it is a priority to ensure that they are managed sustainably.

Disruption in the supply chain and logistics has been identified by the company as a risk in its Risk Matrix, so mitigation measures have been defined, the main ones being: (i) development of a logistical model that ensures the best logistical solutions in the short and medium-long term; (ii) identify alternatives to the current options for the main destinations; (iii) diversification of transportation and logistical suppliers; (iv) selection of suppliers and search for solutions depending on their geographical location; (v) implementation of a transport tracking system; and (vi) monitoring and updating security plans/recovery plans following loss of significant suppliers.

Among the main initiatives to reduce negative impacts, mitigate risks and boost opportunities is the preference for maritime transport. In addition, with a view to maximising the amount of product transported per packaging unit and/or reducing packaging weight, various initiatives have been developed and implemented to optimise the transport flows of raw materials and products. Finally, in order to improve and consolidate the methodology used to calculate transport impacts, the Company has developed its information systems accordingly. Further information on these projects and initiatives can be found in Chapter 4. Environmental information/4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.2 Packaging materials e no Chapter 4. Environmental information/4.2 Climate change/4.2.3 Metrics and targets/4.2.3.4 Other indirect (scope 3) GHG emissions.

Corticeira Amorim does not directly import or process minerals from conflict zones (tin, tantalum, tungsten, gold).

In 2023, there were no significant changes in Corticeira Amorim's supply chain.

Purchasing Policy, Code of Ethics and Conduct for Suppliers and Risk Management Policy available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

As part of its commitment to biodiversity and nature conservation, Corticeira Amorim has joined Act4nature Portugal, a business initiative promoted by the BCSD Portugal, in which member companies make joint and individual commitments to the conservation of biodiversity and ecosystem services.

2.4.2 COMPANY OPERATIONS AND PRODUCT USE

Corticeira Amorim is the world's largest cork processing group and develops its business activity based on the bioeconomy, seeking to have a business activity that has a positive impact on ecosystems throughout the value chain. The most relevant benefits for the planet include work to help preserve the cork oak forest and ecosystem services, the development of eco-efficient processes with a view to reducing the impact of operations, the application of circular economy practices and the offer of products based on nature, which contribute to mitigating climate change.

In addition to the production and distribution activities identified in Chapter 2. Corticeira Amorim/2.2 Business Units, Corticeira Amorim also carries out other activities which do not generate revenue but which have an impact on sustainability, such as: forest management, the production of heat/cold from bioenergy, the renovation of catchment systems, the treatment and supply of water, the installation, maintenance and repair of energy-efficient equipment and the acquisition and renovation of buildings. These additional activities are consistent with the materiality assessment carried out and the impacts are disclosed in this report.

Corticeira Amorim works closely with customers to understand their needs, offer customised solutions, optimise processes, reduce waste and improve efficiency. This is done through a variety of communication channels, including dialogue, partnerships, education/awareness actions, support for initiatives, responding to surveys, among others. In 2023, Corticeira Amorim had approximately 30 thousand customers and 93.2% of sales were outside Portugal, in more than 100 countries.

The Company's operations and product use have a major impact on society, since the demand for sustainable products has been growing in recent years. Cork is an excellent renewable and recyclable alternative to high-impact materials and, in a world where innovation and ecology go hand in hand, developing products based on this raw material enables Corticeira Amorim to leverage economic growth while making it possible to support the transition to the circular economy and contribute to mitigating climate change. In recent years, operations have been guided by a number of key principles, including: developing new products and markets for cork, involving customers in this process, thereby maintaining proximity and making them cork ambassadors; seeking new technological solutions at product level, in partnership with customers, suppliers and other organisations; strengthening the reputation of its brands by constantly evolving its offer in response to new market and consumer trends.

The development of alternative stoppers is identified as a strategic and exogenous risk in Corticeira Amorim's Risk Matrix, and mitigation measures have therefore been defined: (i) investment and continuous monitoring of the quality and reliability of cork stoppers and the quality of cork raw materials; (ii) ongoing reinforcement of market perception of the natural origin of cork stoppers; (iii) strengthening of communication campaigns to promote the attributes of cork products; (iv) investment in promoting cork stoppers as an "oenological product"; (v) continuous investment in R&D and the development of new solutions and composites for the cork stopper; (vi) compliance with certifications and requirements both of purchase materials as well as manufactured products. Among the various initiatives that are being implemented, we highlight the studies aimed at assessing the environmental impacts of the main products, with a focus on the different stages of the life cycle. Additional information in

Chapter 4. Environmental information/4.7 Green products/4.7.2 Metrics and targets/4.7.2.2 Life cycle assessments.

At the end of 2023, Corticeira Amorim had approximately five thousand workers, around the world who are passionate about the business, striving to go further, overcoming challenges, influencing by positive example and promoting the development and well-being of the communities closest to them and of society in general.

Purchasing Policy, Code of Ethics and Conduct for Suppliers and Risk Management Policy available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

2.4.3 RECYCLING

Cork is a material that can be reused and recycled several times in the economy. Recycling cork products extends the life cycle of cork and, consequently, its environmental benefits, in particular its CO2 retention capacity.

The Company currently has several cork recycling initiatives. In particular, several programmes are under way, with various partners, for selective cork stopper collection on five continents, which together have enabled the collection and recycling of 915 t of cork, corresponding to 1.3 t of cork recycled per million euros sold or 3.5% of the cork stoppers produced by Corticeira Amorim in 2023.

Recycled cork can never be used for cork stoppers again, but it can have a second life and be used in a wide array of other products. Recycling projects also have a social responsibility and environmental awareness aspect aimed at all stakeholders and the community in general.

In addition to 100% use of cork, and whenever feasible, Corticeira Amorim promotes industrial symbioses and uses recycled materials or by-products from other industries, thereby saving the planet's natural resources and reducing the problems associated with waste disposal. This management, which is possible thanks to cork's characteristics, also makes it possible to extend the diversity of applications based on circular economy principles.

Corticeira Amorim collaborates with stakeholders throughout the value chain to attain the goal of zero impact of packaging and is committed to developing innovative, durable and high-quality products designed for a sustainable end of life, through reuse, recycling and/or composting.

Additional information Chapter 4. Environmental information/ 4.6 Circular economy/4.6.2 Metrics and targets/4.6.2.1 Materials and 4.6.2.4 Cork recycling.

2.5 STAKEHOLDERS

Corticeira Amorim interacts with various stakeholders who have, or may come to have, influence, dependence and/or responsibility towards the Company, with whom it can share knowledge and best practices, opening new opportunities for the development of sustainable solutions throughout the value chain.

Corticeira Amorim has identified eight main groups of stakeholders: shareholders and investors, customers, employees, official and governmental entities, suppliers, media, Non-Governmental Organisations (NGOs) and the community, and partners and civil society.

Stakeholder involvement is important for the Company, as understanding their concerns and expectations regarding the issues to be monitored and communicated is fundamental for validating and identifying strategic priorities.

2.5.1 COMMUNICATION CHANNELS

To foster stronger alignment with stakeholders' needs and expectations. Corticeira Amorim uses a distinct set of communication channels, that are regularly reviewed and permit a wide range of information to be made available to its stakeholders.

Shareholders and investors Customers		Employees	Official and governmental entities
• General shareholders' meetings	• Sustainability Report	• Sustainability Report	• Periodic disclosure of evolution of the business
• Meetings with investors and analysts	• Environmental education/awareness actions	• Initiatives to defend the cork oak forest	• Consolidated Annual Report and Accounts
• Periodic disclosure of evolution of the	• Support for initiatives/projects	• Environmental education/awareness actions	• Sustainability Report
business	• Satisfaction surveys	• Support for initiatives/projects	• Initiatives to defend the cork oak forest
• Consolidated Annual Report and Accounts	• Participation in fairs and industry events	• Satisfaction surveys	• Participation in fairs and industry events
• Sustainability Report	• Awareness and technical support	• Information panels at the premises	• Cooperation agreements for R&D+I
• Regular meetings and contacts	• Cooperation agreements for R&D+I	• Procedures and policies	• Publication of technical articles
• Responses to external requests	• Publication of technical articles	• Intranet	• Support for initiatives/projects
• Visits to the cork oak forest and to Corticeira	• Working groups	• Performance management systems	• Satisfaction surveys
Amorim	• Regular meetings and contacts	• Various seminars and workshops	• Awareness and technical support
• Website	• Various seminars and workshops	• In-house thematic and awareness-raising	• Working groups
• Social networks	• Responses to external requests	• Responses to external requests	• Regular meetings and contacts
• Newsletter and press releases	• Visits to the cork oak forest and to Corticeira	• Visits to the cork oak forest and to Corticeira	• General and sectoral meetings
• Information brochures	Amorim	Amorim	• Various seminars and workshops
• Response to enquiries	• Website	• Website	• Responses to external requests
	• Social networks	• Social networks	• Visits to the cork oak forest and to Corticeira
	• Newsletter and press releases	• Newsletter and press releases	Amorim
	• Information brochures	• Information brochures	• Website
	• Response to enquiries	• Periodic team meetings	• Social networks
		• Linkpeople (Human Resources ER)	• Newsletter and press releases
			• Information brochures
Suppliers	Media	NGOs and community	Partners and civil society
• Consolidated Annual Report and Accounts	• Periodic disclosure of evolution of the	• Periodic disclosure of evolution of the	• Sustainability Report

• Consolidated Annual Report and Accounts	• Periodic disclosure of evolution of the	• Periodic disclosure of evolution of the	• Sustainability Report
• Sustainability Report	business	business	• Initiatives to defend the cork oak forest and
• Environmental education/awareness actions	• Consolidated Annual Report and Accounts	• Consolidated Annual Report and Accounts	the environment
• Support for initiatives/projects	• Sustainability Report	• Sustainability Report	• Environmental education/awareness actions
• Selection and evaluation of suppliers	• Support for initiatives/projects	• Initiatives to defend the cork oak	• Community engagement initiatives
• Participation in fairs and industry events	• Participation in fairs and industry events	forest and the environment	• Support for initiatives/projects
• Awareness and technical support	• Publication of technical articles	• Environmental education/awareness actions	• Participation in fairs and industry events
• Cooperation agreements for R&D+I	• Responses to external requests	• Community engagement initiatives	• Cooperation agreements for R&D+I
• Publication of technical articles	• Visits to the cork oak forest and to Corticeira	• Support for initiatives/projects	• Publication of technical articles
• Working groups	Amorim	• Cooperation agreements for R&D+I	• Working groups
• Regular meetings and contacts	• Website	• Working groups	• Regular meetings and contacts
• Various seminars and workshops	• Social networks	• Regular meetings and contacts	• General and sectoral meetings
• Responses to external requests	• Newsletter and press releases	• General and sectoral meetings	• Various seminars and workshops
• Visits to the cork oak forest and to Corticeira	• Information brochures	•Various seminars and workshops	• Responses to external requests
Amorim		• In-house thematic and awareness-raising	• Visits to the cork oak forest and to Corticeira
• Website		• Responses to external requests	Amorim
• Social networks		• Visits to the cork oak forest	• Website
• Newsletter and press releases		and to Corticeira Amorim	• Social networks
• Information brochures		• Website	• Newsletter and press releases
		• Social networks	• Information brochures
		• Newsletter and press releases
		• Information brochures

2.5.2 CONSULTATION

Corticeira Amorim has conducted a process of consultation and involvement with its stakeholders since 2009. This is a crucial stage in the development of its materiality matrix and, consequently, in the creation of its sustainability strategy. This process has enabled Corticeira Amorim to understand external developments and market concerns and expectations, as well as to anticipate new opportunities and emerging risks (Chapter 2. Corticeira Amorim/2.6 Definition of strategy).

The most recent stakeholder consultation process took place in 2018, and the materiality matrix and strategy were reviewed in 2021.

For more information on stakeholder consultations, see the Sustainability Reports for the years 2009, 2011, 2013, 2015, 2018 e 2021 available at https://www.amorim.com/en/sustainability/ reports/.

Extended stakeholder consultation (2018) (direct consultation of the eight stakeholder groups)

137	8	74%
stakeholders	main stakeholder	response rate
identified	groups consulted

Top 5 most relevant topics

• • Promotion of the montado (cork oak forest), its biodiversity and ecosystem services
• • Economic performance
• • Ethics and anti-corruption
• • Materials management
• • Waste and effluents management

89%

agree that the Organisation has a clear vision of its economic, social and environmental responsibilities

97% consider the information provided in the Sustainability Report to be good or very good

Review (2021)

Documental research and direct consultation with customers and investors

3 new topics identified

• • Transparency and communication
• • Emissions management
• • Customer satisfaction

2.6 DEFINITION OF STRATEGY

The definition of Corticeira Amorim's strategic sustainability priorities is developed by the Sustainability support area with the collaboration of other support areas and involves a materiality analysis that takes into account the Company's mission, vision and values, the evolution of the business activity, risks and opportunities, as well as sustainability trends and benchmarks, changes in legislation, external commitments and internal policies, alignment with the Sustainable Development Goals (SDG) and stakeholder expectations (Chapter 2. Corticeira Amorim/2.5 Stakeholders/2.5.2 Consultation).

The Board of Directors is responsible for approving the strategic objectives, strategic initiatives and priority actions, and the CECA is responsible for implementing and monitoring them. The alignment of the entire Organisation is enhanced using the balanced scorecard methodology.

The implementation of the initiatives and actions needed to fulfil the objectives defined in the short (up to 1 year), medium (1 to 3 years) and long (3 to 10 years) terms, as well as the monitoring and regular reporting of performance, are the responsibility of the teams of each BU, and they are also responsible for identifying and proposing actions to fulfil the objectives and targets defined, as well as identifying and proposing new challenges.

Top management approval	Board of Directors
Monitoring and implementation by top management	Executive Committee
Proposal of strategic priorities and consolidation of sustainability indicators	Sustainability support area with the collaboration of other support areas
Implementation of initiatives and actions, monitoring and internal reporting	Teams responsible for implementing sustainable development practices in each BU

2.6.1 MISSION, VISION AND VALUES

By promoting the cyclical extraction of cork, without damaging the trees, Corticeira Amorim contributes to making the cork oak forest a viable, natural and renewable resource, delivering numerous economic, environmental and social benefits.

The Company's mission, vision and values reflect its belief in the uniqueness of cork as a natural material, its ambition for success and its commitment to long-term sustainability. The purpose is

simple: to combine knowledge, technology and innovation with this age-old material and promote an activity with a sustainable balance, generating added value for all stakeholders and the planet.

These guidelines direct the strategic priorities for sustainable development, which incorporate economic, environmental and social concerns and define a clear roadmap for making strategic, operational and investment decisions, both now and in the future.

Mission

Add value to cork, in an ethical, competitive, distinctive and innovative way that is in perfect harmony with nature.

Vision

Be a sustainable company, providing suitable value for the capital invested while promoting social equity diversity integration and environmental safeguards, with differentiating factors at product and service level.

Values

Pride

We take pride in the tradition of our business, in our Company history and in the knowledge that we have accumulated in the many years of work of different generations. We are proud to work with a raw material that comes from the earth, has an identity, and combines tradition, modernity and innovation, respecting the principle of equal treatment and opportunities for all employees.

Ambition

We take pleasure in what we do, we drive ourselves to do more and better, developing new customers, new markets and new applications for cork.

Initiative

We find solutions for commitments and challenges, responding quickly, effectively and positively to different circumstances and contexts, always focused on the development of the business and the industry, thereby also promoting the interests of our employees and other stakeholders.

Sobriety

We celebrate victories and commemorate successes internally, favouring discretion in our relationship with the outside world, never forgetting that we must always learn more and continuously do better.

Attitude

We are with the Company in the good times and bad times with our effort, commitment and availability, giving the best of us and always respecting employees, customers, suppliers, shareholders and other stakeholders relevant to the sustainability of Corticeira Amorim.

2.6.2 MATERIALITY MATRIX

To ensure that the sustainability strategy is kept up to date and to support the risk management process, Corticeira Amorim carries out regular materiality analyses, with the support of external experts. The last process took place in 2018. Given the implementation of the

new GRI standards (GRI 1 and GRI 3) and the path that Corticeira Amorim is following to ensure alignment with the Corporate Sustainability Reporting Directive (CSRD), it was considered essential to review the results of the materiality review conducted in 2021, in line with the concept of double materiality.

Materiality analysis
	The materiality analysis conducted in 2018 and its review (2021) were supported by external experts and involved four main steps:
Documental research	The documental research relied on reliable sources of information to identify and prioritise the most relevant sustainability topics for Corticeira Amorim's stakeholders. This work included an analysis of current and emerging market and stakeholder trends, as well as identification of the main changes in the Company's external environment. The analysis focused on publicly available information from relevant companies, including industry peers, customers, suppliers, partners and opinion makers.
	The themes identified were given a score between 1 (not important) and 5 (very important), reflecting the importance that the organisations attached to the issues included in terms of evaluation and impact of the actions taken.
	The results provided relevant information for prioritisation of issues and identification of strategic opportunities for improvement of future performance.
Involvement of Corticeira Amorim's employees	This step was considered in the 2018 process in a broad manner and in the 2021 review in a more restricted manner. In 2018 a broad group of employees from all the BUs was invited to classify several themes identified in the documental research, based on their perceived importance for Corticeira Amorim and performance, wherein 1 is not important and 5 is very important. The survey was sent to 32 employees and had a response rate of 94%. To complement the internal survey, two focus groups were organised, one with the participation of various support areas, in particular human resources, legal, risk, investor relations, consolidation, communication and corporate governance, and another with top management, to obtain information on the assessment of material issues. The 2021 review involved the organisation of focus groups, with special importance given to the perception of the potential impact of the issues on the Organisation's financial performance and its ability to create value.
Engagement with relevant external stakeholders	This step was considered in the 2018 process in a broad manner and in the 2021 review in a more restricted manner. In 2018, the external stakeholders belonged to the following groups: shareholders and investors, customers, official and governmental entities, partners and civil society, suppliers, media and NGOs and the community. They were asked, through questionnaires, to classify several themes identified in the documental research, based on their perceived importance for Corticeira Amorim and performance, wherein 1 is not important and 5 is very important. The survey was sent to 105 stakeholders and had an overall response rate of 74% (including employees). The 2021 review involved interviews with six stakeholders belonging to the shareholder and investors and customers groups which allowed for further refinement of the material issues and provided additional information on the main sustainability topics and their impacts.
Approval	The CECA approved the definition and the final materiality matrix.

Therefore, for the materiality matrix presented in this report, the material impacts of Corticeira Amorim's activity on people and/or the environment were considered, as well as those impacts that may generate risks or opportunities and that have a material influence on the Company's ability to create value in a sustainable way.

Throughout the report, the material themes for Corticeira Amorim are highlighted, according to the materiality matrix:

• Environmental disclosures: promotion of the "montado" (cork oak forest), its biodiversity and associated ecosystem services; energy efficiency and climate change; emissions management; circular economy, which includes the subject matter of materials management;
• Social disclosures: economic performance and research, development and innovation that incorporates impact on the community; health and safety at work; the environmental impact of the product, including the subject matters of product responsibility and quality, customer satisfaction and customer privacy. Given their importance for the Organisation, training and development, which include diversity and equal opportunities, are also considered to be material topics for the purposes of this report;
• Governance disclosures: marrying the Company's environmental and social responsibility values with corporate governance rules and principles in order to ensure these values are part of the Company's decision-making process; transparency and communication; compliance that integrates ethics and anti-corruption and sustainable supplier management.

Materiality Matrix

Financial materiality

Impact materiality

2.6.3 POLICIES ADOPTED TO MANAGE MATERIAL SUSTAINABILITY MATTERS

Corticeira Amorim is governed by a solid and cohesive set of internal regulations, comprising statutes, codes, regulations and policies, which enable its stakeholder's expectations to be aligned, and thereby foster balanced and prudent management, reinforce transparency and demonstrate the Company's commitments to developing its business activity in line with sustainable development.

Corticeira Amorim seeks to identify and integrate issues that may have an impact on governance of sustainability, such as regulation or stakeholder perceptions, and respond to the challenges that arise in the markets in which it operates.

The General Sustainability Policy formalises the following commitments:

• Act in full compliance with the laws and regulations in force in the regions where it operates, and to collaborate with the authorities as far as possible;
• Integrate sustainability into the decision-making process;
• Respect employees, customers, suppliers, shareholders and other stakeholders that are important to the sustainability of Corticeira Amorim;
• Manage risks and opportunities associated with the Organisation's activities, so as to avoid negative impacts on people and the environment;
• Conduct business according to principles of trust, transparency and ethics, encouraging communication channels to inform, involve and maintain an ongoing dialogue with stakeholders;
• Build and foster a framework of respect for the fundamental values of Human Rights (as proclaimed by the United Nations Universal Declaration of Human Rights) and Labour Rights (as proclaimed by the ILO);
• Encourage free trade, striving to prioritise responsible and sustainable relationships with its suppliers and having common commitments to sustainable development;
• Repay the support of the communities where it operates, contributing to the progress, economic development and well-being of those communities, encouraging small and medium-sized enterprises (SMEs) and future local entrepreneurs to achieve sustainable results and thus boost national entrepreneurship.

Corticeira Amorim regularly notifies employees of updates to this set of guidelines and promotes their dissemination and adoption throughout the Organisation.

Corporate regulation and policies, in particular the General Sustainability Policy available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

Management systems

Corticeira Amorim's companies have an Integrated Management System (IMS), in which quality, environmental and safety indicators are monitored and possible improvement actions and associated resource needs are identified. The IMS is an important tool for achieving internal and external compliance with internal requirements, standards and legal regulations, as well as company objectives and practices.

The management systems are audited internally and externally, according to the schedule defined for each system. In addition, a statutory annual compliance verification audit is also carried out. All the systems have underlying performance improvement policies and objectives, which are supported by an activity plan, and there are evaluation mechanisms and indicators defined for each one. Due to the different characteristics of the companies and their activities (agroforestry, raw material preparation, industrial, distribution), each one implements the model that best suits the associated nonfinancial risks or emerging opportunities in the markets in which they operate, which is why there are so many different certifications: the management system of cork stopper manufacturing practices (Systcode), quality (ISO 9001), environment (ISO 14001), energy (ISO 50001), food safety (B-BBEE, BRC, BRCGS packaging materials, FSSC 22000, HACCP, IFS Broker, ISO 22000 ), forest products and chain of custody (FSC, PEFC), occupational health and safety (ISO 45001) and social responsibility (SA 8000).

In all establishments not covered by external certifications, there are evaluation mechanisms and indicators defined for each of the systems.

Considers the number of certifications on the total of 28 PUs (*), 25 PUs in the Amorim Florestal and Amorim Cork BUs (**) and 14 PUs in the Amorim Cork BU (***), respectively.

In 2018, after consulting its stakeholders, Corticeira Amorim aligned the Group's economic, environmental and social objectives with the UN's Sustainable Development Goals (SDGs), designing and implementing the Sustainable by Nature programme.

3. SUSTAINABLE BY NATURE PROGRAMME

In 2018, Corticeira Amorim aligned the Company's objectives with the United Nations SDGs and laid the foundations for the Sustainable by nature programme, which sets out the ambition to be met by 2030.

This programme is based on four fundamental pillars: promote transparency and responsibility; promote the environmental feature of the product and the "Montado"; promote people´s development, safety and well-being; promote R&D+I and leverage economic performance.

Currently, ten major objectives have been defined that guide the actions of the entire Organisation, focusing on ethics and integrity, the value chain, the cork oak forest, climate change, circular economy, green products, development, health, safety and well‑being, community/society and innovation.

Corticeira Amorim promotes regular monitoring of the actions envisaged in the sustainability programme, which includes quantitative objectives, performance indicators and control procedures, which guarantee, with comparable levels of rigour and integrity, the reporting of its priorities and progress in these matters, and whose results are disclosed throughout this report.

Ethics and integrity	Act in an appropriate and ethical way, with transparency and responsibility, stimulating competitiveness and the creation of long -term value.	• Integrate climate change measures; • Protect the labour rights; • Foster balanced and prudent management and sustainability; • Be transparent and accountable; • Sustain economic growth.
Value chain	Reinforce responsible production and consumption, preferably selecting suppliers that adopt good ESG practices.	• Eradicate forced labour worldwide and ensure a global elimination on child labour; • Promote sustainable management and efficient use of resources; • Strengthen partnerships for sustainable development.
Cork oak forest	Preserve the cork oak forest and ecosystem services by increasing knowledge, mobilizing resources and proposing initiatives.	• Strengthen efforts to protect and safeguard cultural and natural heritage; • Promote the implementation of sustainable forest management and mobilise resources; • Integrate the values of ecosystems and biodiversity.
Climate change	Reduce the environmental impact of operations by adopting renewable, affordable and efficient solutions.	• Increase the use of renewable energy; • Improve energy efficiency; • Increase efficiency in water use; • Reduce the negative environmental impacts.
Circular economy	Apply the principles of circular economy through the reduction of waste, extend the life of materials and regeneration of natural systems.	• Improve the efficiency of global resources, thereby achieving sustainable management; • Substantially reduce the generation of waste through reducing, recycling and reusing materials; • Manage use of chemicals in an environmentally sound manner.
Green products	Maintain a proactive role in developing the already vast scope of application of cork, sustained by the innate properties of the material.	• Strengthen resilience and adaptability to climate-related risks; • Upgrade infrastructure and rehabilitate industries to make them sustainable; • Reduce the negative environmental impact.
Development	Promote personal and professional development for all.	• Provide training for all; • Ensure equal access to opportunities; • End all forms of discrimination.
Safety, health and well-being	Ensure the safety of employees in the workplace and access to quality health conditions.	• Promote safe and secure work environments for all workers; • Provide access to essential quality health services; • Reduce the number of work-related accidents.
Community/ society	Boost economic growth in a sustainable and inclusive manner, ensuring efficient production and decent work for all.	• Sustain economic growth; • Strengthen the global partnership for sustainable development.
Innovation	Support and promote research, development and innovation and foster sustainable solutions.	• Promote development-oriented policies that support productive activities, entrepreneurship, creativity and innovation; • Enhance scientific research.

3.1 QUANTITATIVE TARGETS FOR 2030 AND PROGRESS (scope: Portugal perimeter)

Corticeira Amorim continues to develop and implement its Sustainable by nature programme, which currently sets out seven quantitative goals for 2030 and nine quantitative targets for the period 2021-2024.

The scope considered in these quantitative objectives corresponds to companies in Portugal that have the potential to produce a significant impact on the Sustainable by nature programme's priority areas and that cover the majority of Corticeira Amorim's operations. In terms of the financial perimeter, these companies represent: 65.0% of consolidated sales, 65.6% of workers and 60.5% of PUs.

The Sustainable by nature programme is not static. Every year a review is carried out which may lead to a readjustment of some of the objectives outlined or the introduction of new ones.

In 2023 there was a continued determination to achieve the quantitative objectives summarised in the table below:

	Sustainable by nature programme (sustainability perimeter)		Quantitative targets (Portugal perimeter)
Pilar	Goal 2030	2030 targets	Plan 2021-24	Target 2030	Performance 2023
Ethics and integrity	• Act in an appropriate and ethical way, with transparency and responsibility, stimulating	• Integrate climate change measures; • Protect the labour rights;	• Review Code of Business Ethics and Professional Conduct;	*
	competitiveness and the creation of long-term value.	• Foster balanced and prudent management and sustainability; • Be transparent and accountable;	• Formalise regulations for the functioning of the main corporate bodies and committees;		*
		• Sustain economic growth.	• Develop the Anti-Corruption Code and Plan;	*
			• Implement a Human Rights due diligence process;		*
			• Formalise/review policies;		*
			• Define the Risk Catalogue;		**
			• Implement a risk monitoring and reporting model.		**
Value chain	• Reinforce responsible production and consumption, preferably selecting suppliers that adopt good ESG practices.	• Eradicate forced labour worldwide and ensure a global elimination on child labour; • Promote sustainable management and efficient use of resources; • Strengthen partnerships for sustainable development.	• Establish and promote adherence to the Code of Ethics and Conduct for Suppliers.		*
Cork oak forest	• Preserve the cork oak forest • Strengthen efforts to protect and ecosystem services and safeguard cultural and by increasing knowledge, natural heritage; mobilizing resources and • Promote the implementation proposing initiatives. of sustainable forest management and mobilise resources; • Integrate the values of ecosystems and biodiversity.		• + 3,000 ha intervened forest estates under management by 2024.	1,405 ha intervened forest estates under management.

Climate change	• Reduce the environmental impact of operations by	• Increase the use of renewable energy;	• ≥2/3 of controlled renewable energy/year;	69.8% controlled renewable energy;
	adopting renewable, affordable and efficient solutions.	• Improve energy efficiency; • Increase efficiency in water use;	• +2% energy efficiency/year;		4.5% energy efficiency;
		• Reduce the negative environmental impacts.	• –1% water consumption intensity/year.		0.5% water consumption intensity;
				• 100% controlled renewable electrical energy;	8.9% controlled renew able electrical energy;
				• Zero carbon footprint (scopes 1 and 2).	30,675 tCO2eq carbon footprint (scopes 1 and 2).
Circular economy	• Apply the principles of circular economy through the reduction of waste,	• Improve the efficiency of global resources, thereby achieving sustainable management;	• -5% weight of non-renewable virgin materials/year;		-37.5% weight of non-renewable virgin materials;
	extend the life of materials and regeneration of natural	• Substantially reduce the generation of waste through	• ≥ 90% waste recovery rate (non-cork) / year.	• 100% waste recovery rate.	91.1% waste recovery rate (non-cork);
	systems.	reducing, recycling and reusing materials; • Manage use of chemicals in an environmentally sound manner.			100% use of cork.
Green products	• Maintain a proactive role in developing the already vast	• Strengthen resilience and adaptability to climate-related		• 100% recyclable packaging materials;	90.5% renewable and/ or recycled packaging materials;
	scope of application of cork, sustained by the innate properties of the material.	risks; • Upgrade infrastructure and rehabilitate industries to make them sustainable; • Reduce the negative		• 0% non-renewable virgin packaging materials.	9.5% non-renewable virgin packaging materials.
		environmental impact.
Development	• Promote personal and professional development	• Provide training for all;	• 95% workers with training by 2024;	• 100% workers with training;	87.6% workers with training;
	for all.	• Ensure equal access to opportunities;	• 25% women in management positions by 2024.	• 33.3% women in management positions;	24.1% women in management positions;
		• End all forms of discrimination.		• 33.3% women workers.	27.1% women workers.
Safety, health and well-being	• Ensure the safety of workers in the workplace and access to quality health conditions.	• Promote safe and secure work environments for all workers; • Provide access to essential quality health services; • Reduce the number of work-related accidents.	• Zero recordable work-related injuries by 2024.	• Zero recordable work-related injuries.	55 recordable work-related injuries.
Community/ society and innovation	• Boost economic growth in a sustainable and inclusive manner, ensuring efficient production and decent work for all; • Support and promote research, development and innovation and foster sustainable solutions.	• Sustain economic growth; • Strengthen the global partnership for sustainable development; • Promote development- -oriented policies that support productive activities, entrepreneurship, creativity and innovation; • Enhance scientific research.	• Develop a volunteer plan.		***

* https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

** Chapter C – Internal Organisation / III. Internal Control and Risk Management of the Corporate Governance Report

*** Chapter 5. Social information/ 5.2 Community/society and innovation/ 5.2.2 Metrics and targets.

Fulfilled

In progress

Not fulfilled

4. ENVIRONMENTAL INFORMATION

4.1 EUROPEAN UNION TAXONOMY

The Taxonomy Regulation (2020/8521) states that an economic activity, to be environmentally sustainable, must: 1) contribute to at least one of the six environmental objectives identified in that Regulation (climate change mitigation; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; protection and restoration of biodiversity and ecosystems); 2) not significantly harm any of the other five objectives and 3) comply with minimum social safeguards, on Human Rights, corruption, taxation and fair competition.

Until 2022, only the first two environmental objectives, Climate Change Mitigation and Adaptation, were regulated by the Climate Delegated Act (2021/2139), published in 2021, which was later supplemented by a Complementary Delegated Act (2022/1214) on certain activities related to nuclear energy and fossil gas. In 2023, the Climate Delegated Act was updated by the Delegated Regulation (2023/2485), and new activities were included for mitigation and adaptation objectives. In addition, the Environmental Delegated Act (2023/2486) was published, which regulates the other environmental objectives: the sustainable use and protection of water and marine resources; the transition to a circular economy; the prevention and control of pollution and the protection and restoration of biodiversity and ecosystems.

The Taxonomy Regulation defines a set of KPIs associated with economic activities considered to be environmentally sustainable, which non-financial companies must disclose: the proportion of their turnover (turnover KPI), the proportion of their capital expenditure (CAPEX KPI) and the proportion of their operating expenditure (OPEX KPI) that are aligned with the EU Taxonomy. Article 8 of the Delegated Act (2021/2178) determines which contents, methodology and information must be disclosed by companies, as defined by the EU Taxonomy. These disclosures have also been updated by the Environmental Delegated Act.

In 2024, companies must continue to report alignment with respect to Climate Delegated Act activities and all activities introduced in the amendments to this Delegated Act. For the new activities included in the Environmental Delegated Act, it is only necessary to report eligibility.

4.1.1 ELIGIBILITY

For a given activity to be considered eligible under the EU Taxonomy, it must be included in the Climate Delegated Act for the Climate Change Mitigation and Adaptation objectives, in the Complementary Delegated Act (relating to fossil gas and nuclear energy) and in the Environmental Delegated Act for the other environmental objectives.

Corticeira Amorim is the largest cork transformation group in the world. The cork processing activity is not included in the Climate Delegated Act or the Environmental Delegated Act and is therefore currently considered to be ineligible for the EU Taxonomy. However, the Company develops the business activity of manufacturing insulation products, which is included in the Climate Delegated Act (activity 3.5) and presents a set of investments in other activities that are also in the Delegated Act. The table below lists the activities identified as eligible in fiscal year 2023, taking into account Corticeira Amorim's sales, CAPEX and OPEX when applying the environmental taxonomy.

Objective and activity no.	Name of activity	Elig. "Sales"	Elig. "CAPEX and/or OPEX"
CCM 1.3 / CCA 1.3	Forest management		X
CCM 3.5 / CCA 3.5	Manufacture of energy efficiency equipment for buildings	X	X
CCM 4.24 / CCA 4.24	Production of heat/cool from bioenergy		X
CCM 5.2 / CCA 5.2	Renewal of water collection, treatment and supply systems		X
CCM 5.3 / CCA 5.3	Construction, extension and operation of wastewater collection and treatment		X
CCM 5.4 / CCA 5.4	Renewal of wastewater collection and treatment		X
CCM 5.9 / CCA 5.9	Material recovery from non-hazardous waste		X
CCM 6.5 / CCA 6.5	Transport by motorbikes, passenger cars and light commercial vehicles		X
CCM 7.2 / CCA 7.2 / CE 3.2	Renovation of existing buildings		X
CCM 7.3 / CCA 7.3	Installation, maintenance and repair of energy efficiency equipment		X
CCM 7.4 / CCA 7.4	Installation, maintenance and repair of charging stations for electric vehicles in buildings		X
CCM 7.5 / CCA 7.5	Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings		X
CCM 7.6 / CCA 7.6	Installation, maintenance and repair of renewable energy technologies		X
CCM 7.7 / CCA 7.7	Acquisition and ownership of buildings		X
CCM 9.1	Close to market research, development and innovation		X

CCM (Climate change mitigation); CCA (Climate change adaptation); CE (Circular economy)

The economic activities identified above as eligible in terms of the Climate Delegated Act fulfil the description in Annexes I and II, which means that they are eligible for the climate change mitigation objective and the climate change adaptation objectives. However, eligibility and the respective KPI calculation were assigned to the mitigation objective, since the contribution to climate change adaptation is less significant. For the new activities included in the Environmental Delegated Act, one eligible activity was identified for the circular economy objective (Activity 3.2 – Renovation of existing buildings).

In relation to the provisions of the Complementary Delegated Act concerning certain energy activities (nuclear and fossil gas), Corticeira Amorim has no economic activities that fall under this regulation.

4.1.2 ALIGNMENT

For an economic activity to qualify as aligned with the EU Taxonomy it must make a substantial contribution (SC) to at least one of the defined environmental objectives, do no significant harm (DNSH) to the achievement of any of the other environmental objectives of the EU Taxonomy, and comply with minimum social safeguards.

For 2023, Corticeira Amorim assessed the alignment of the activities initially included in the Mitigation and Adaptation objectives. For the new activities included in the Climate Delegated Act and the Environmental Delegated Act, a statutory eligibility analysis was carried out. The alignment analysis included an assessment of SC and DNSH criteria, with the latter relating to the application of the Appendices (A, B, C and D), taking into account criteria that are transversal to the whole Organisation, as well as minimum social safeguards.

4.1.2.1 SUBSTANTIAL CONTRIBUTION AND DO NO SIGNIFICANT HARM

This section briefly describes the analysis of alignment to the SC and DNSH criteria identified in the Climate Delegated Act. These conclusions are based on the best knowledge available at the time of the analysis of these criteria.

Activity	SC and DNSH analysis
CCM 1.3 Forest management	Corticeira Amorim is the world's leading cork manufacturer and, for this reason, contributes to the exploration and maintenance of cork oak forests, which currently occupy a total area of 2.1 million hectares in the Mediterranean Basin. The Company also owns an area of 8,181 hectares, where it intends to promote and disseminate new planting techniques, which will enable more efficient and resilient management of the cork oak forest, to cope with the expected climate scenarios. This activity was considered to be in line with the taxonomy's technical criteria. As part of this activity, the Company included investments to support forestry management (equipment, plantations, land preparation) in its CAPEX KPI.
CCM 3.5 Manufacture of energy efficiency equipment for buildings	Corticeira Amorim has a vast portfolio of products, aimed at different markets and objectives, produced using cork, in particular floor and wall covering materials, insulation and energy-efficient composite cork for use in structures and buildings. For the technical assessment of the SC criteria: i) insulating products with a lambda value equal to or lower than 0.06 W were considered to be aligned; ii) the remaining products, endowed with energy efficiency, were considered eligible, but not aligned. For the DNSH 2 (Climate change adaptation), DNSH 3 (Sustainable use and protection of water and marine resources) and DNSH 6 (Protection and restoration of biodiversity and ecosystems) criteria, additional information is provided below this table. For DNSH 4 (Transition to a circular economy), compliance with the respective criteria is confirmed. The turnover associated with this activity corresponds to sales of eligible and/or aligned products. The CAPEX associated with this activity correspond to investments related to the production of eligible/aligned insulation products.
CCM 4.24 Production of heat/ cool from bioenergy	Corticeira Amorim uses biomass (mainly cork powder) as the main source of energy for heat production. The cork powder is generated endogenously in production. The Company owns several facilities for producing energy in the form of heat from biomass. The forest biomass used meets the criteria set out in Article 29 (6) and (7) of EU Directive 2018/2001, in that the risks of using forest biomass from non-sustainable production are minimised. The Company considers that, after analysis of the SC and DNSH criteria, the business activity is in line with the EU Taxonomy. The CAPEX and OPEX associated with this activity correspond to investments and operating expenses related to repairs and maintenance and improvement of equipment and technology.
CCM 5.2 Renewal of water collection, treatment and supply systems	Corticeira Amorim's direct operations need water and discharge it. Most of the water used by Corticeira Amorim is sourced from groundwater, the rest being obtained from the public network. Therefore, the renewal of water collection, treatment and supply systems, including the renewal of water collection, treatment and distribution infrastructures to meet the Company's industrial needs is part of the Organisation's activity, and the renovation and optimisation of these systems allows an increase in their energy efficiency, reducing the system's net energy consumption. The CAPEX and OPEX associated with this activity correspond to the expenses incurred in maintaining and repairing capture systems.
CCM 5.3 Construction, extension and operation of wastewater collection and treatment	Corticeira Amorim's direct operations need water and discharge it. The larger industrial facilities treat wastewater in their own industrial wastewater treatment plants (WWTPs). Therefore, the construction, expansion and operation of wastewater collection and treatment systems is part of the Organisation's activity, and the renovation and optimisation of these systems allows for an increase in their energy efficiency, reducing the system's net energy consumption. The CAPEX associated with this activity corresponds to investments made in wastewater collection and treatment systems.
CCM 5.4 Renewal of wastewater collection and treatment	Corticeira Amorim's direct operations need water and discharge it. In terms of treatment, the larger industrial facilities collect and treat wastewater in WWTPs. Corticeira Amorim continuously invests in the optimisation of the WWTPs. This activity replaces the more greenhouse gas (GHG) intensive treatment systems (such as septic tanks and anaerobic lagoons). Based on the technical assessment of the SC and DNSH criteria defined in the Delegated Act, this activity is considered to be aligned with the EU Taxonomy. The CAPEX associated with this activity corresponds to investments to improve the rainwater network. The OPEX corresponds to expenses related to wastewater treatment.
CCM 5.9 Material recovery from non-hazardous waste	In the industrial units licensed in the Portuguese territory for recycling materials, Corticeira Amorim receives cork stoppers and other end-of-life cork applications, as well as by-products from other industries (materials that result from industrial symbiosis), for treatment and grinding. After being transformed into granules, the material returns to the production process and is incorporated into products of the Amorim Cork Composites, Amorim Cork Flooring and/or Amorim Cork Insulation BUs, as appropriate. By the technical assessment of the SC and DNSH criteria defined in the Delegated Act, this activity was classified to be aligned with the EU Taxonomy. The CAPEX associated with this activity corresponds to investments in equipment, and OPEX to maintenance and repair costs.
CCM 6.5 Transport by light vehicles	Corticeira Amorim makes use of car rental services to carry out its activities. This activity results from the renting vehicles and excludes right-of-use assets. It was not possible to assess the technical compliance with all the SC and DNSH criteria defined in the Delegated Act. Thus, the business activity was classified as eligible, but not aligned with the EU Taxonomy.
CCM 7.2 / CE 3.2 Renovation of existing buildings	Corticeira Amorim made a significant set of investments (CAPEX) associated with the renovation of buildings and civil engineering works. The Company considered these investments as non-aligned, as it was not possible to assess the technical compliance with all the SC and DNSH criteria defined in the Delegated Act.
CCM 7.3 Energy efficiency	Corticeira Amorim made a number of investments (CAPEX) in air conditioning, lighting, windows and other energy-efficient equipment, and also has a number of operating expenses (OPEX) related to this activity. A significant portion of the investments and operating costs included in this activity were considered to be aligned.
CCM 7.4 Charging stations for electric vehicles	The Organisation has its own electric vehicle charging stations on its premises, having made investments in this type of equipment during fiscal year 2023 (CAPEX). This activity was considered to be aligned with the EU Taxonomy.
CCM 7.5 Controlling energy performance of buildings	During fiscal year 2023, Corticeira Amorim made a set of investments (CAPEX) associated with building energy management systems and energy management systems. The investments were considered to be aligned with the EU Taxonomy.
CCM 7.6 Renewable energy technologies	The CAPEX reported for this activity is associated with investments made in projects for the installation of photovoltaic panels in the Company's different BUs, which were considered to be aligned with the EU Taxonomy.
CCM 7.7 Ownership of buildings	The OPEX reported for this activity is associated with operating expenses for real estate rentals. This activity was considered eligible, but not aligned, as it was not possible to assess the technical compliance with all the SC and DNSH criteria defined in the Delegated Act.
CCM 9.1 Close to market research, development and innovation	Corticeira Amorim has a solid commitment to and significant investments in RDI across all BUs. These investments are aimed at enhancing the value of cork in a competitive, innovative and sustainable way. During fiscal year 2023, the Company developed a set of projects and initiatives that contributed to the reduction of GHG emissions from its activities. Only some of the operating expenses related to RDI projects contributing to climate change mitigation were considered in the analysis of eligibility and alignment.

Application of the DNSH criteria related to the Appendices of Annex I to the Delegated Act Climate

Adaptation to climate change (Appendix A)

The Company conducted an analysis of different types of risks whose occurrence could have an impact on Corticeira Amorim's business in the future and analysed climate risks. The risk of forest fires and water stress were identified as the most relevant physical climate risks for our activities. Corticeira Amorim already has an overview of the different physical risks, related to nature and climate, for each of the establishments and respective locations. Based on Appendix A of the Climate Delegated Act (Mitigation Annex), the Classification of climate-related hazards table, an assessment of physical climate risks was carried out using the ThinkHazard! tool, which identifies the greatest physical hazards to which certain locations are exposed, classifying them by risk levels and also offering recommendations on solutions to adapt to them. Although we do not yet carry out an assessment of the impact of physical risks through climate scenarios, we plan to do so in the future in order to obtain a more rigorous evaluation. Regarding adaptation solutions, Corticeira Amorim already develops several initiatives that promote the adaptation of its forests to the risks that threaten them. For example, the Forestry Intervention Project (FIP) aims to preserve cork oak trees and cork oak forest ecosystems, through programmes that promote their resistance to drought, pests and diseases and increase their survival rate. Further information on Corticeira Amorim's risk analysis (physical and transitional) can be found in Chapter 1. General disclosures/1.5 Risk management and internal controls over sustainability reporting and in Chapter 11. Alignment with the TCFD.

Sustainable use and protection of water and marine resources (Appendix B)

Water is essential for socio-economic development, the maintenance of healthy ecosystems, the sustainability of the planet and human survival. Aware of the need to preserve this fundamental resource for the planet, Corticeira Amorim has an approach based on three pillars: reduction of consumption, treatment and hydrological regulation. With regard to consumption, Corticeira Amorim has established for 2021-2024 the goal, in its activities in Portugal, of reducing the intensity of water consumption by 1%/year, through a set of actions to be implemented during this period. In 2021, it began an audit of all facilities in Portugal with a view to gauging a common methodology for determining water consumption. Additionally, a list was drawn up with several actions, based on the best practices among the business units. Another example is the adoption of some good practices of ISO 46001 - Water Efficiency Management Systems, in particular the creation and monitoring of performance indicators for the main water consumers and listing the variables that influence water consumption per process, especially in intensive consumption areas. The identification and mitigation of the risks of environmental degradation, linked to the preservation of water quality and prevention of water stress, are processes incorporated into the Organisation's Environmental Management System (EMS). When applicable, due analyses are made to assess the chemical, ecological and quantitative status of the water bodies used. The Aqueduct Water Risk Atlas tool (wri.org) is used to identify water stressed areas. In Portugal, the legal regime for Environmental Impact Assessment (EIA) is defined by Decree-Law No. 152 -B/2017, of 11 December, which transposes Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment, as amended by Directive 2014/52/EU.

The Water Law, which transposes the Water Framework Directive (Directive 2000/60/EC of the European Parliament and of the Council, of 23 October 2000) into national legislation, is established by Law No. 58/2005, of 29 December. Corticeira Amorim diligently complies with national legislation in all its activities and an assessment of legal compliance is carried out annually by external verifying entities. There were no significant cases of non-compliance with environmental laws and regulations during the reporting period (Chapter 10. GRI Table/2 -27).

Prevention and control of pollution with regard to the use and presence of chemicals (Appendix C)

In order to ensure that Corticeira Amorim's operations and products meet all the guarantees of quality, health and safety in the workplace, the Company has a set of external certifications that attest to compliance with the specific requirements of different sectors and markets. These include the management system of cork stopper manufacturing practices, quality, environment, energy, food safety, forest products and chain of custody, occupational health and safety and social responsibility (Chapter 2. Corticeira Amorim/ 2.6 Definition of strategy/2.6.3 Policies adopted to manage material sustainability matters/Management systems). It should also be noted that Corticeira Amorim's products are subject to tests, as well as voluntary and compulsory audits, which guarantee the maintenance of high standards of quality and safety. Amorim Cork Insulation uses 0% additives in its insulation products, which are simultaneously 100% natural, recyclable, reusable and long-lasting, and 100% of its flooring and wall coverings are certified for indoor air quality and contribute towards sustainable construction certifications, LEED/ BREEAM. Corticeira Amorim does not use, manufacture or place on the market substances listed in Appendix C, except in cases where it considers them to be indispensable for the operation of the business activity and, to the best of its knowledge, there are no available products that are more acceptable from the environmental and health points of view than those currently used. The Company also believes that these substances are used under controlled conditions.

Protection and restoration of biodiversity and ecosystems (Appendix D)

Corticeira Amorim integrates the conservation of biodiversity into its management model and annually implements various actions to maintain and increase the areas of cork oak forest, taking care to promote the conservation of the respective natural and sociocultural values. The Company promotes Forestry Stewardship Council (FSC®) certification and maintains a medium to long-term partnership relationship with cork suppliers.

The European Union's EIA directive (Directive 2011/92/EU) is implemented in Portugal by Decree-Law No. 152-B/2017, of 11 December, which assesses the effects of certain public and private projects on the environment. Corticeira Amorim diligently complies with national legislation and the requirements demanded in all its activities. In its industrial operations, Corticeira Amorim does not operate in protected areas. Part of Herdade da Baliza's agroforestry operation is located in Natura 2000 protected areas, where mitigation measures have been implemented.

As part of its commitment to the conservation of biodiversity and nature, Corticeira Amorim joined Act4nature Portugal, a business initiative, promoted by BCSD Portugal, in which member companies make common and individual commitments to the conservation of biodiversity and ecosystem services. In addition to implementing the ten common commitments of Act4nature Portugal, Corticeira Amorim strengthens its commitment through a set of individual SMART commitments, which are described in Chapter 4. Environmental information/4.5 Biodiversity and ecosystems/4.5.2 Policies related to biodiversity and ecosystems.

4.1.2.2 MINIMUM SAFEGUARDS

The definition of Minimum Safeguards, introduced by Article 18 of the Taxonomy Regulation, implies the alignment of a company "with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the International Labour Organization Declaration on the Fundamental Principles and Rights at Work and the International Bill of Human Rights". In other words, according to the EU Taxonomy, to be considered environmentally sustainable, an activity must also safeguard social issues.

In June 2023, the European Commission published a Communication on the interpretation of Minimum Safeguards, in which it referred to the Final Report on Minimum Safeguards of the Platform on Sustainable Finance, published in October 2022, as good practice. This report indicates that companies should address four topics – Human Rights, Corruption, Taxation and Fair Competition.

Corticeira Amorim is governed by a solid set of internal regulations and policies which, associated with the Company's Articles of Association and Code of Business Ethics and Professional Conduct, reinforce Corticeira Amorim's position in relation to sustainable development. Respect for Human Rights is assumed as a structural principle of all the Organisation's activity. This principle is embodied in the Human Rights Policy, in which the Company undertakes to build and foster a framework of respect for the fundamental values of Human Rights and Labour, which is imperative for the entire Company, but also progressive, in the sense that these values are intended to spread to other stakeholders. In particular, the Company is against arbitrary arrest, torture or execution and in favour of human dignity, non-discrimination, equal rights, safety and well-being, education, personal and professional development and freedom of conscience, religion, organisation, association, opinion and expression. As part of the training plan for the 2021-2024 period, the commitment is to ensure that all workers are trained in the Code of Business Ethics and Professional Conduct. Thus, since 2022, 9,364 hours of training have been given on this Code.

In the area of Human Rights, two fundamental instruments were developed: the Purchasing Policy and the Code of Ethics and Conduct for Suppliers. The Purchasing Policy defines a set of objectives to be followed in order to evaluate and select new suppliers based on economic, social, ethical and environmental criteria. The Code of Ethics and Conduct for Suppliers reflects the culture of the Organisation and defines the appropriate behaviour with regard to ethical, social and environmental conduct that Corticeira Amorim expects of its suppliers of goods and services. The Company favours contracting suppliers that adhere to the Code of Ethics and Conduct for Suppliers and may terminate the relationship with suppliers that do not comply with internationally recognised Human Rights and/or allow any breach of those rights within their industrial and/or commercial operations.

In addition to these instruments, there are several procedures in the purchase of materials that guarantee the mitigation of potential impacts. Purchases of cork and cork products, where applicable, are made preferably from suppliers who follow the ICCSMP and 96.0% of cork purchases in 2023 were sourced locally: Portugal and Spain. These are also regions considered controlled origin, i.e. low risk for all five categories of unacceptable sources under the FSC® controlled wood system.

The acquisition of non-cork products includes a pre-qualification, qualification and evaluation of suppliers. Suppliers are subject to an audit programme, which takes place annually, according to the following criteria: supplier performance in the previous year; criticality of the products or services supplied; in the case of new suppliers: quality, environmental and social aspects. After each audit, the suppliers' performance is evaluated in order to validate the criteria necessary for qualification and identification of non-conformities. When non-conformities are identified, an action plan is requested and, depending on the seriousness of the non-conformities, follow-up audits and verification of mitigation measures are carried out. There may be room to collaborate with the supplier in order to resolve the non-conformities or, as a last resort, to find alternatives to the supplier.

Corticeira Amorim has an Irregularities' Internal Reporting Procedure and makes available on its website an Irregularities' Internal Communication Form, through which any person or entity may report an infraction within the scope of their professional/ commercial relationship with the Company. Also in this regard, Corticeira Amorim has implemented an internal Monitoring Report on Respect for Human Rights with the aim of strengthening its practices and commitments related to the due diligence process within its operations. This programme identifies the main mechanisms and procedures in place to guarantee the protection of Human Rights.

To manage corruption issues, and as a complement to the Code of Business Ethics and Professional Conduct, the following instruments have been developed: Risk Prevention Plan for Corruption and Related Infractions and the Anti-corruption Code of Conduct, which together define and regulate the behaviour and measures to be adopted by the Company and its stakeholders, including in

relation to corruption issues. Corticeira Amorim absolutely rejects all and any unethical or dishonest conduct or behaviour and, in particular, fraud, corruption, money laundering or financing of criminal or terrorist organisations. The Risk Prevention Plan for Corruption and Related Infractions analyses and classifies, for each entity and area of the Organisation, the potential risks of corruption or associated infractions, and systematises the measures already in place to prevent these risks, as well as the corrective measures to reduce the probability of occurrence and impact of the risks and situations identified. In 2023, specific training was given to managers on this subject.

With regard to taxation, the Tax Policy was formalised, in which a commitment is made to maintain procedures for the prevention and detection of illegal practices in financial and accounting matters, including money laundering or financing of terrorism, by employees or third parties, and in which a commitment is made to implement good practices in tax and social security matters, considering any form of fraud as reprehensible. To learn more about Corticeira Amorim's approach to tax, please see Chapter 6. Governance information/6.1 Business conduct/6.1.2 Metrics and targets/6.1.2.4 Approach to tax.

Finally, regarding fair competition, the Company develops a transparent and loyal competitive practice, respecting the competition legislation, in particular regarding the prohibition of restrictive practices and the discipline applicable to company mergers. Furthermore, Corticeira Amorim and its employees undertake both to respect competing companies and their representatives, refraining from any practice that promotes unfair competition and, in particular, to respect the confidentiality of information and the intellectual property of entities related to the Company and to refrain from abusing dominant positions in the negotiation and management of contracts.

During 2023, no convictions were identified in the four areas mentioned above. In summary, based on its internal codes, policies and procedures, Corticeira Amorim manages and prevents the different risks associated with the topics of Human Rights, Corruption, Taxation and Fair Competition.

4.1.3 KPI CALCULATION

In accordance with the requirements of the Climate Delegated Act Article 8, companies must report KPIs in three separate tables, each referring to one indicator - turnover, CAPEX and OPEX. A summary of the results is presented below:

KPI eligibility and alignment	Total (K€)	Eligible and aligned (%)	Eligible and non-aligned (%)	Non-eligible (%)
Turnover	985,467	4.0%	3.5%	92.6%
Capital expenditure (CAPEX)	95,280	13.0%	6.3%	80.7%
Operating expenditure (OPEX)	26,501	5.9%	1.8%	92.2%

4.1.3.1 TURNOVER

Financial year 2023	2023			Substantial Contribution Criteria					DNSH criteria ("Does Not Significantly Harm")
Economic activities (1)	Cod e (2 )	Turn ove r (3) , K€	Prop orti on o f Tu rnov er, y ear N (4 )	Clim ate Cha nge Mit igat ion ( 5)	Clim ate Cha nge Ada ptat ion ( 6)	Wat er (7 )	Poll utio n (8 )	Circ ular Eco nom y (9 )	Biod iver sity (10 )	Clim ate Cha nge Mit igat ion ( 11)	Clim ate Cha nge Ada ptat ion ( 12)	Wat er (1 3)	Poll utio n (1 4)	Circ ular Eco nom y (1 5)	Biod iver sity (16 )	Min imu m S afeg uard s (1 7)	or e Prop ligib orti le (A on o .2.) f Tax turn ono ove my a r, ye ligne ar N d (A 1 (1 .1.) 8)	Cat ego ry e nab ling acti vity (19 )	Cat ego ry tr ans ition al ac tivit y (2 0)
A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of energy efficient equipment for buildings	CCM 3.5	38,996	4.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	3.9%	E
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)		38,996	4.0%	4.0%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	3.9%
Of which enabling		38,996	4.0%	4.0%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	3.9%	E
Of which transitional		0	0%	0%						Y	Y	Y	Y	Y	Y	Y	0%		T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of energy efficient equipment for buildings	CCM 3.5	34,356	3.5%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								4.1%
Turnover of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		34,356	3.5%	3.5%	0%	0%	0%	0%	0%								4.1%
A. Turnover of taxonomy eligible activities (A.1+A.2)		73,352	7.4%	7.4%	0%	0%	0%	0%	0%								8.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Total (A + B)	985,467	100%
non-eligible activities (B)
Turnover of Taxonomy	912,115	92.6%

4.1.3.2 CAPEX

Financial year 2023		2023		Substantial Contribution Criteria				DNSH criteria ("Does Not Significantly Harm")
Economic activities (1)	Cod e (2 )	Turn ove r (3) , K€	Prop orti on o f Tu rnov er, y ear N (4 )	Clim ate Cha nge Mit igat ion ( 5)	Clim ate Cha nge Ada ptat ion ( 6)	Wat er (7 )	Poll utio n (8 )	Circ ular Eco nom y (9 )	Biod iver sity (10 )	Clim ate Cha nge Mit igat ion ( 11)	Clim ate Cha nge Ada ptat ion ( 12)	Wat er (1 3)	Poll utio n (1 4)	Circ ular Eco nom y (1 5)	Biod iver sity (16 )	Min imu m S afeg uard s (1 7)	elig Prop ible orti (A.2 on o .) tu f Tax rnov ono er, y my a ear ligne N1 ( d (A 18) .1.) or	Cat ego ry e nab ling acti vity (19 )	Cat ego ry tr ans ition al ac tivit y (2 0)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Forest management	CCM 1.3	2,309	2.4%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%
Manufacture of energy efficient equipment for buildings	CCM 3.5	168	0.2%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.2%	E
Production of heat/ cool from bioenergy	CCM 4.24	1,305	1.4%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	1.5%
Renewal of water collection, treatment and supply systems	CCM 5.2	29	0.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%
Construction, extension and operation of wastewater collection and treatment	CCM 5.3	20	0.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%
Renewal of wastewater collection and treatment	CCM 5.4	72	0.1%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.1%
Material recovery from non-hazardous waste	CCM 5.9	1,147	1.2%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.5%
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	132	0.1%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%	E
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)	CCM 7.4	8	0.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%	E
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	3	0.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%	E
Installation, maintenance and repair of renewable energy technologies	CCM 7.6	6,332	6.6%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	6.9%	E
Close to market research, development and innovation	CCM 9.1	892	0.9%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.1%	E
CAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)		12,416	13.0%	13.0%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	9.3%
Of which enabling		7,533	7.9%	7.9%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	7.2%	E
Of which transitional		0	0%	0%						Y	Y	Y	Y	Y	Y	Y	0%		T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Forest management Manufacture of energy efficient equipment for buildings	CCM 1.3 CCM 3.5	0 4,691	0.0% 4.9%	EL EL	N/EL N/EL	N/EL N/EL	N/EL N/EL	N/EL N/EL	N/EL N/EL								23.9% 2.6%
Renovation of existing buildings	CCM 7.2 / CE 3.2	1,226	1.3%	EL	N/EL	N/EL	N/EL	EL	N/EL								1.6%
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	63	0.1%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0.0%
CAPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		5,980	6.3%	6.3%	0%	0%	0%	0%	0%								28.3%
A. CAPEX of taxonomy eligible activities (A.1+A.2)		18,396	19.3%	19.3%	0%	0%	0%	0%	0%								37.6%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CAPEX of Taxonomy-non-eligible activities (B) Total (A + B)		76,884 95,280	81% 100%

4.1.3.3 OPEX

Financial year 2023		2023		Substantial Contribution Criteria						DNSH criteria ("Does Not Significantly Harm")
Economic activities (1)	Cod e (2 )	Tur nov er ( 3), K€	Pro por tion of T urn ove r, ye ar N (4)	Clim ate Cha nge Mit igat ion (5)	Clim ate Cha nge Ad apt atio n (6 )	Wa ter (7)	Poll utio n (8 )	Circ ular Eco nom y (9 )	Biod iver sity (10 )	Clim ate Cha nge Mit igat ion (11 )	Clim ate Cha nge Ad apt atio n (1 2)	Wa ter (13 )	Poll utio n (1 4)	Circ ular Eco nom y (1 5)	Biod iver sity (16 )	Min imu m S afeg uard s (1 7)	or e Pro por ligib tion le (A of T .2.) axo turn nom ove y al r, ye igne ar N d (A 1 (1 .1.) 8)	Cat ego ry e nab ling act ivity (19 )	Cat ego ry t rans ition al a ctiv ity ( 20)
A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned)
Production of heat/cool	CCM 4.24	727	2.7%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	2.9%
from bioenergy Renewal of water collection, treatment and	CCM 5.2	21	0.1%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.0%
supply systems Renewal of wastewater collection and treatment	CCM 5.4	178	0.7%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.1%
Material recovery from non-hazardous waste	CCM 5.9	254	1.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.9%
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	6	0.0%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.1%	E
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	16	0.1%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.1%	E
Close to market research, development and innovation	CCM 9.1	373	1.4%	Y	N/EL	N/EL	N/EL	N/EL	N/EL	Y	Y	Y	Y	Y	Y	Y	0.3%	E
OPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1)		1,576	5.9%	5.9%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	4.5%
Of which enabling		396	1.5%	1.5%	0%	0%	0%	0%	0%	Y	Y	Y	Y	Y	Y	Y	0.6%	E
Of which transitional		0	0%	0%						Y	Y	Y	Y	Y	Y	Y	0%		T
A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles	CCM 6.5	312	1.2%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0.1%
Renovation of existing buildings	CCM 7.2 / CE 3.2	4	0.0%	EL	N/EL	N/EL	N/EL	EL	N/EL								0.0%
Acquisition and ownership of buildings	CCM 7.7	164	0.6%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0.9%
Close to market research, development and innovation	CCM 9.1	10	0.0%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								0.1%
OPEX of Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		489	1.8%	1.8%	0%	0%	0%	0%	0%								1.3%
A. OPEX of taxonomy eligible activities (A.1+A.2)		2,065	7.8%	7.8%	0%	0%	0%	0%	0%								5.8%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy-non-eligible activities (B)		24,436	92.2%
Total (A + B)		26,501	100%

4.1.3.4 COMPLEMENTARY DELEGATED ACT MODEL 1

The EU Taxonomy Regulation also requires, through Article 8 of the Delegated Act, that non-financial entities disclose the models for activities related to nuclear energy and fossil gas. Corticeira Amorim does not engage in operations related to these activities and discloses Model 1 below, as required by the aforementioned Delegated Act.

Row	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
Row	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

With regard to the use of fossil gas, Corticeira Amorim has some boilers that use natural gas or propane. The Company considers such consumption to be minor and it relates to situations where biomass boilers are being maintained or when there is a need for an alternative to this fuel for heat production.

4.1.4 DEFINITIONS AND ACCOUNTING POLICIES

4.1.4.1 TURNOVER

Definition and reconciliation

The proportion of turnover is calculated as the portion of annual net turnover derived from products or services, including intangibles, associated with Taxonomy-aligned economic activities (numerator) divided by net turnover (denominator) within the meaning of Article 2(5) of Directive 2013/34/EU. Net turnover includes income recognised in accordance with International Accounting Standard (IAS) 1, paragraph 82(a), as adopted by European Commission Regulation 1126/2008. In 2023, the denominator of the turnover ratio consists of total sales and services rendered, as presented in the consolidated income statement, excluding construction income from concession assets. The denominator can be reconciled with the total revenue presented in Note 7 of the Notes to the consolidated financial statements, and the related accounting policies are detailed in Note 2 of the same. The numerator corresponds to the amount of the denominator resulting from Taxonomy-aligned economic activities, detailed above in Chapter 4. Environmental information/4.1 European Union Taxonomy/4.1.2 Alignment.

Additional information

Analysis of annual turnover only covers the economic activities associated with revenue from sales and services rendered to third parties, since intra-group transactions are eliminated when drawing up the consolidated accounts. The amounts included in the numerator are considered according to their contribution to the CCM (Climate Change Mitigation) environmental objective, and there are no additional amounts to be included in the numerator that relates solely to the CCA (Climate Change Adaptation) environmental objective.

Definition and reconciliation

The proportion of capital expenditure is defined as Taxonomyaligned CAPEX (numerator) divided by total CAPEX (denominator).

In accordance with the Delegated Act of Article 8 of the EU Taxonomy, total CAPEX consists of the value of additions to tangible and intangible assets during the year, prior to consideration of depreciation, amortisation and any re-measurements, in particular those resulting from revaluations and impairments, and excluding changes in fair value. Additions of property, plant and equipment (IAS 16), intangible assets (IAS 38), right-of-use assets (IFRS 16), investment property (IAS 40) and biological assets (IAS 41) are included. Goodwill additions are not included.

The numerator is the part of the capital expenditure included in the denominator that:

• Is related to assets or processes associated with Taxonomyaligned economic activities;
• Is part of a plan to expand Taxonomy-aligned economic activities or to enable Taxonomy-eligible economic activities to become Taxonomy-aligned activities; or
• Is related to the acquisition of the output from Taxonomy‑ ‑aligned economic activities and to individual measures enabling the transformation of the respective activities to low‑carbon activities or leading to reductions in greenhouse gas emissions, provided that these measures are implemented and operational within 18 months.

In 2023, the denominator of the CAPEX KPI consists of the total annual additions to tangible and intangible fixed assets, including right-of-use assets. The denominator can be reconciled with the total additions presented in notes 8, 9 and 11 of the notes to the consolidated financial statements, and the respective accounting policies are detailed in note 2 of the same. In 2023, the numerator corresponds to the part of the denominator associated with Taxonomy-aligned economic activities, detailed above in Chapter 4. Environmental information/4.1 European Union Taxonomy/4.1.2 Alignment, including activities intended for the Company's internal consumption, as well as the acquisition of output from economic activities aligned with the Taxonomy.

Additional information

In order to be included in the numerator, the values of the denominator are first analysed to ascertain whether they are associated with Corticeira Amorim's Taxonomy-aligned economic activities. If they do not qualify as aligned activities of the Company, the amounts are assessed individually to verify whether they result from acquisition of the output of another Taxonomy-aligned economic activity. In such cases, investments were analysed, for which there is sufficient information to identify whether the respective eligible economic activity is Taxonomy-aligned, including compliance with the DNSH criteria and minimum safeguards, or otherwise for which it was possible to assess directly was considered.

4.1.4.3 OPEX

Definition

The proportion of operating expenditure is defined as the Taxonomy-aligned OPEX (numerator), divided by total OPEX (denominator). In accordance with the Delegated Act under Article 8 of the EU Taxonomy, total OPEX consists of the direct costs not capitalised during the year relating to research and development, building refurbishment measures, short-term leases, maintenance and repair, and other direct expenditure associated with day-to-day servicing of fixed assets necessary to ensure their functioning.

The numerator corresponds to the part of operating expenses included in the denominator that:

• Is related to assets or processes associated with Taxonomy‑ ‑aligned economic activities, including training and other adaptation needs of human resources;
• Is part of a plan to expand Taxonomy‑aligned economic activities or to enable Taxonomy‑eligible economic activities to become Taxonomy‑aligned activities; or
• Is related to the acquisition of the output from Taxonomy‑ ‑aligned economic activities and to individual measures enabling the transformation of the respective activities to low‑carbon activities or leading to reductions in greenhouse gas emissions, provided that these measures are implemented and operational within 18 months.

The amounts are included in the consolidated profit and loss statement under External Supplies and Services (note 27) of the notes to the consolidated financial statements. Amounts under personnel costs are not included since they do not incorporate expenses of a nature that meets the EU Taxonomy definition of total OPEX.

In 2023, the numerator corresponds to the part of the denominator associated with Taxonomy-aligned economic activities, detailed above in Chapter 4. Environmental information/4.1 European Union Taxonomy/4.1.2 Alignment, including activities intended for the Organisation's internal consumption, as well as the acquisition of output from economic activities aligned with the Taxonomy. Training costs are not included in the OPEX KPI, since it is not foreseen to include them in the denominator.

Additional information

In order to be included in the numerator, the values of the denominator are first analysed to ascertain whether they are associated with Corticeira Amorim's Taxonomy-aligned economic activities. If they do not qualify as Taxonomy-aligned activities of the Organisation, the amounts are assessed individually to determine whether they result from the acquisition of the output from a Taxonomy-aligned economic activity. In such cases, the alignment is assessed based on the information made available by third parties or is assessed directly.

4.1.5 VOLUNTARY DISCLOSURES

Portugal has set itself the target of becoming carbon neutral by 2050. In this context, the country recognises the importance of forests to achieve this goal, due to their role in carbon sequestration. For every tonne of cork produced, the cork oak forest sequesters up to 73 tonnes of CO2. Given that the cork oak forest is a carbon sink and that the cork oak lives for an average of 200 years and can grow with minimal or no use of fertilisers, pesticides or pruning, it plays an important role in achieving this goal.

The future EU forest strategy will promote the management of forests for environmental, social and economic sustainability. Portugal has one of the highest forest fire risk ratings in Europe, mainly due to the lack of forest management. Poorly managed forests and forests with high volumes of residual biomass, which act as fuel in excessively dry climates, represent an increased risk for the occurrence of forest fires, which highlights the importance of sustainable forest management. To reduce the probability of forest fires, specialists suggest planting species that are more resistant to fire, such as the cork oak tree (an evergreen tree belonging to the Phagaceae family, which also includes the chestnut and oak tree). In this context, investment in the maintenance and management of cork oak forests and in increasing the availability of cork has the potential to contribute to reducing the risk of forest fires in Portugal. Cork processing companies are a driving force in creating economic interest for cork oak forest owners to continue harvesting cork.

Based on this context, Corticeira Amorim considers that the business activity of producing cork stoppers, including activities to improve efficiency in the use of this raw material and research and development associated with its manufacturing process, has a positive environmental impact and contributes to the goal of transforming Portugal into a low carbon economy. Corticeira Amorim has also conducted several studies on the life cycle assessments of cork stoppers in various segments (still wines, sparkling wines and spirits) and concluded that all these stoppers have a negative carbon balance6 when considering the sequestration of cork oak forests and the emissions associated with their production.

6 Claims regarding carbon sequestration potential are based on studies carried out by the respective entities of the studies, available at https://www.amorim.com/en/ sustainability/studies/. More information in Chapter 9. References and scope of the report/9.3 GHG emissions/Additional information on the carbon sequestration potential of cork oak forests.

Corticeira Amorim voluntarily conducted the exercise of calculating Taxonomy indicators with the inclusion of the production of cork stoppers. For this exercise, it was considered that almost 100% of production corresponds to revenue-generating activities specifically related to packaging technologies with low energy incorporation, which extend shelf life and reduce waste, and constitute the best alternative for clients who are looking for better quality and wish to contribute to climate regulation. Corticeira Amorim uses technologies, throughout its entire cork stopper portfolio, aimed at improving the quality of stoppers by removing detectable TCA (2,4,6-Trichloroanisole)7 and other compounds. The Company assessed, on a voluntary basis, the incorporation of the cork stoppers production activity in activity 3.6 of the Climate Delegated Act (Manufacture of other low carbon technologies). Including the values of the cork stopper production activity in the assessment of KPIs related to the EU Taxonomy would have the following results:

KPI eligibility and alignment	Total (K€)	Eligible and aligned (%)	Eligible and non-aligned (%)	Not eligible (%)
Turnover	985,467	62.2%	21.6%	16.2%
Capital expenditure (CAPEX)	95,280	48.0%	17.2%	34.8%
Operating expenditure (OPEX)	26,501	43.5%	13.6%	42.9%

7 2,4,6-Trichloroanisole is a harmless chemical that can affect the flavour and aroma of wine.

4.1.6 NEXT STEPS

During 2024, Corticeira Amorim will continue to develop procedures and actions to ensure an adequate response to the Taxonomy alignment criteria. These activities include:

• Following up on updates from the European Commission or the Platform on Sustainable Finance;
• Applying technical alignment criteria relating to the new environmental objectives;
• Progressively developing the Human Rights Due Diligence process to strengthen practices and commitments related to its operations;
• Monitoring updates to the analysis of the physical risks of its business activities and continuing work to ascertain the existing risks for its raw materials, as well as associated risks;
• Analysing potential extensions of the Taxonomy regulations to other activities and implementing guidelines that may have a significant impact on Corticeira Amorim's eligibility classification and alignment in the future;
• Implementing a digital platform aimed at increasing the quality of data collection, analysis and transformation associated with the application of the Taxonomy.

4.2 CLIMATE CHANGE

(SDGs 6, 7, 11, 13)

4.2.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

As in any other industrial activity, Corticeira Amorim's transformation processes have associated environmental impacts, particularly those related to climate change. Climate change is one of the biggest challenges facing the world and is also one of the most important issues for Corticeira Amorim's stakeholders. The Company is committed to the fight against climate change and believes that all companies have an important role to play in the transition to a sustainable economy.

Climate considerations in remuneration

Given the importance of aligning the remuneration of members of management bodies with climate-related targets, the performance of executive directors is assessed on the basis of specific management targets in these areas. Currently, 20% of the variable remuneration is linked to agreed Sustainability Index | ESG targets, particularly those related to the climate, encouraging practices and decisions that are in line with environmental sustainability. Additional information in Chapter D - Remuneration/70. Information on how remuneration is structured so as to enable the aligning of the interests of the members of the Board of Directors with the Company's long-term interests and how it is based on the performance assessment and how it discourages excessive risk taking of the Corporate Governance Report.

Transition plan for climate change mitigation

Corticeira Amorim has established quantitative targets for five material aspects related to sustainability, including climate change, for the period 2021-2024 (reference year 2020), and four material aspects related to sustainability, including climate change, for 2030. These targets apply to operations in Portugal.

Corticeira Amorim expects a reduction in scope 1 and 2 emissions from its operations of at least 2.5% per year, in line with the wellbelow 2⁰C scenario, since it has been actively implementing different projects and measures in the following areas:

• Consistently and continuously improving energy efficiency by 2% year (energy efficiency project);
• Increasing the share of renewable sources in electricity consumption to 100%, achieving 20% of electricity consumed from controlled renewable sources in the 2021-2024 period (photovoltaic project);
• Use of renewable energy sources as the main source of energy, gradually eliminating fossil energy sources and guaranteeing controlled renewable energy consumption above 66.7% (renewable energy project (biomass)).

Corticeira Amorim is also focused on reducing scope 3 emissions and is working on an emissions reduction programme, with the aim of setting science-based targets over the next two years (sustainable packaging project).

The plan has been approved by the CECA and is integrated and aligned with the Company's global strategy and financial planning, ensuring that the strategy and business models are compatible with the transition to a sustainable economy. This plan is constantly reviewed to ensure that it is adapted to changes in the market and the Company's needs.

Corticeira Amorim participates in the UN Global Compact, the Porto Climate Pact, the Porto Protocol and the 50 Sustainability & Climate Leaders, reinforcing its commitment to the United Nations 2030 Agenda.

Material impacts, risks and opportunities

Climate risks are part of an integrated multidisciplinary system regarding risk identification, assessment, prioritisation, treatment and monitoring.

Corticeira Amorim conducted an assessment of the physical climate risks for each of its agroforestry, raw material preparation, industrial or distribution units and their respective locations using the ThinkHazard! tool, which identifies the greatest physical dangers to which certain countries are exposed, classifies them by risk levels and also offers recommendations on solutions for adapting to these risks.

The aim is to actively manage the risks related to climate change. To this end, climate risks with an impact on Corticeira Amorim's business and value chain have already been identified and assessed, and a climate adaptation plan has been developed, focusing mainly on the Company's own operations. The next step will be to carry out a climate scenario analysis and examine the resilience of Corticeira Amorim's business model in the context of different climate change scenarios, and incorporate climate risks into the management system, as well as complete the climate adaptation plan.

The Company has identified the risk of forest fires and the risk of water stress as the relevant physical climatic risks for the main raw material used in its activities. For this reason, Corticeira Amorim already develops several initiatives that promote the adaptation of cork oak forests to the risks that threaten them. For example, the FIP aims to preserve cork oak trees and cork oak forest ecosystems, through programmes that promote their resistance to drought, pests and diseases and increase their survival rate.

The cork oak tree and cork (raw material and products) can also sequester carbon, which contributes to mitigating GHG emissions. In this regard, the conclusions of research conducted by the Instituto Superior de Agronomia leave no doubt as to the importance of the role of the cork oak tree and the ecosystem surrounding it: for every tonne of cork produced, the cork oak forest sequesters up to 73 tonnes of carbon dioxide8.

The use of Corticeira Amorim's products also contributes to mitigating climate change, both through their capacity to retain carbon and by replacing more energy-intensive alternative products. The industrial processing of cork, that has been harvested from cork oak trees, is the best way to guarantee the preservation and development of cork oak forests, ensuring their economic viability. Specific legislation is in place to protect them, as well as several NGOs programmes that seek to preserve forests by improving and certifying forest management practices. It is essential to foster the development of subericulture that is capable of promoting the crucial role played by the cork oak forest and, at

the same time, fuel the growth of the market for cork products. The facts described above will therefore provide an opportunity for differentiating cork products.

Further information on Corticeira Amorim's risk analysis (physical and transitional) can be found in Chapter 1. General disclosures/1.5 Risk management and internal controls over sustainability reporting, in Chapter 4. Environmental information/4.2 Climate change/4.2.1 Strategy and impact, risk and opportunity management and in Chapter 11. Alignment with the TCFD.

8 https://www.apcor.pt/wp-content/uploads/2015/10/Brochura\Ambiente\\_ EN.pdf#page=18

4.2.2 POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

Energy, Environment and Biodiversity Policy

In line with its Energy, Environment and Biodiversity Policy, the Company implements throughout its value chain – from cork production to its transformation into products with low or negative carbon impact up to the end of the product's life – sustainable practices that are based on the following fundamentals:

• Ensure compliance with legal requirements and other requirements to which the Organisation subscribes, applicable to the environmental aspects of its activities, products and services;
• Monitor significant environmental aspects, contributing to the prevention of pollution;
• Assume a proactive attitude, identifying, evaluating and implementing the appropriate preventive measures to minimise the specific environmental impacts of each activity, using, whenever feasible, the best available practices and technologies.

To ensure that climate-related ambitions and targets are incorporated throughout the Company and that management is held accountable for the achievement of those targets, Corticeira Amorim, in its management by objectives system, contemplates climate change issues, including the achievement of targets by the CECA and the Procurement and Energy, new products and packaging departments.

Commitments to the rational use of energy and other resources

Corticeira Amorim undertakes to apply environmental criteria in all planning and decision-making work on issues that may have an impact on the environment, and also implement the necessary tools to avoid pollution and reduce energy consumption, investing in cleaner energy sources and more ecological technologies.

In addition, Corticeira Amorim undertakes to contribute to research and to encourage the development and dissemination of technologies that respect the environment and energy efficiency and seek carbon neutrality.

It also commits to making rational use of resources, minimising water, paper and energy consumption, reducing waste generation and emissions, favouring recycling and seeking ecologically correct solutions.

Actions and resources in relation to climate change policies

Corticeira Amorim's activity uses resources and its environmental impacts predominantly arise in its production units. Most of the energy used in the production process is renewable and locally generated. In some operations energy sourced from fossil fuels is also used. This results in GHG and other atmospheric emissions, which have an impact on the environment. The production processes also consume water and release effluents and waste.

Aided by different working groups, Corticeira Amorim identifies initiatives and engages with external stakeholders in order to reduce the Company's environmental impact and achieve the goals set out in the Sustainable by nature programme, which are outlined in the following subchapters.

4.2.3 METRICS AND TARGETS

4.2.3.1 CERTIFICATIONS/AUDITS/VERIFICATIONS

	Production units
ISO 14001	14.3 %
ISO 50001*	17.9 %
Internal EMS	67.9 %
Total	100 %

* Not included in ISO 14001.

Includes 28 PUs of the sustainability perimeter.

Corticeira Amorim companies have an Integrated Management System, which includes an Environmental Management System. Due to the different characteristics of the various companies and activities, each implement the model that best suits the associated non-financial risks or the opportunities emerging in the markets in which they operate, which justifies the diversity of external certifications. The management systems are audited, internally and externally, according to the schedule defined for each system. In addition, an annual audit to verify compliance is also carried out. All the systems have underlying performance improvement policies and objectives, which are supported by an activity plan, and there are evaluation mechanisms and indicators defined for each one. They are also available in several languages.

By the end of 2023, 32.1% of the production units had their Environmental or Energy Management System certified by international standards, such as ISO 14001 and ISO 50001, respectively. Additionally, 16 of the 28 production units (57.1%) had their chain of custody certified according to the FSC®, which confirms to the market the Company's commitment to protecting biodiversity, the rights of workers and indigenous peoples, and areas of significant environmental impact of cultural importance (Chapter 2. Corticeira Amorim/2.6 Definition of strategy/2.6.3 Policies adopted to manage material sustainability matters).

4.2.3.2 ENERGY CONSUMPTION WITHIN THE ORGANISATION

	Unit of measurement	2023	2022	2021
Energy consumption
Natural gas	GJ	36,387	35,224	44,889
Propane gas	GJ	10,430	12,458	6,163
Gasoline	GJ	410	406	481
Diesel	GJ	36,339	34,488	34,979
Biomass	GJ	1,083,540	1,210,409	1,301,858
Electrical	GJ	483,100	522,886	541,494
Total energy consumption	GJ	1,650,206	1,815,871	1,929,864
Renewable energy	%	76.7%	76.7%	78.5%
Controlled renewable energy	%	68.3%	67.6%	67.8%
Energy efficiency	%	4.3%	2.8%	3.8%
Energy intensity	GJ /M€	2,309	2,548	2,862

The unit of measurement used is GJ; to convert to MWh,

the values should be divided by 3.6.

Energy intensity = energy consumption /

consolidated sales of the sustainability perimeter.

Corticeira Amorim uses various energy sources: natural gas, propane gas, gasoline, diesel, biomass and electrical. Most of the energy consumed comes from renewable sources, such as renewable electrical energy and biomass, the latter of which is used to produce the heat needed for the industrial process. The non‑renewable energy consumed comes from non‑ ‑renewable electrical energy, natural gas, propane gas, gasoline and diesel. Natural gas and propane gas are used to supplement biomass for heat production. Propane gas, gasoline and diesel are used to fuel the internal fleet and some forklift trucks.

In line with Corticeira Amorim's objectives, total energy consumption decreased by 9.1% between 2022 and 2023 due to a number of factors, such as the implementation of energy efficiency measures, the switch to more efficient energy sources and the slowdown in activity. This translates into an effective reduction in energy intensity of 9.4% between 2022 and 2023.

The percentage of total renewable energy consumed remained at 76.7% in 2023, but there was an increase in controlled renewable energy as a result of ongoing energy efficiency, renewable energy and photovoltaic projects. The electrical energy from the photovoltaic project accounted for 9.0% of total electricity consumption (2022: 3.2%).

In order to monitor the energy consumption available in the operations in Portugal, comply with the objectives established within the Sustainable by nature programme, maintain involvement, and the urgent need to adapt technology to increased production and quality, among other objectives, the Company holds an annual energy efficiency forum involving the participation of the executives in charge of energy issues.

Energy efficiency project

Corticeira Amorim's commitment to energy efficiency is renewed annually and has as a goal, for operations in Portugal, achieving an energy efficiency rate of 2% per year. In 2023, the energy consumed by Corticeira Amorim totalled 1.65 million GJ, with around 76 energy efficiency measures having been implemented, resulting in an investment of approximately 772.4 thousand euros, which made it possible to achieve: 4.3% energy efficiency, 70 thousand GJ of energy saved and approximately 871 tCO₂eq avoided. These measures include both simple and intuitive actions, such as changing the lighting or intervening in the various electrical installations (15 measures), and more complex actions that require major investments and adaptations. This is the case of the use of compressed air to generate movement in industrial processes (19 measures). Other measures that had a major impact, with a significant investment, are those carried out at a thermal level, especially in terms of boilers. The boilers in operation, despite already operating with renewable energy from biomass, are the target of constant interventions, to keep them modern and efficient (30 measures). The remaining 12 measures were developed in order to improve the efficiency of processes, motors and others. Once these actions have been implemented, a rigorous monitoring programme will follow, calculating the impacts generated and preparing any additional and/or corrective measures that may be necessary.

Renewable energy project (biomass)

This project came about in response to the reduction in the availability of cork powder for use at the energy level, which results from the constant search to optimise the yield of cork consumed in the industrial cycle. The various initiatives include: (i) optimising the yield of cork powder for burning; (ii) converting boilers to burn other biomass (olive stones, almond shells or pellets); (iii) acquiring new, more efficient boilers; and (iv) optimising the thermal energy distribution network.

In 2023, an investment of more than 513 thousand euros was made in this project, spread over 30 measures, which resulted in 266 tCO2eq avoided.

Photovoltaic project

Corticeira Amorim is committed to increasing the use of energy from renewable sources, both through the selection of energy suppliers according to the proportion of renewable energy in their mix and through direct investment in photovoltaic projects. With an investment in excess of 11 million euros during the period 2021-2024, around 24 MWp will be installed, using more than 40,000 solar panels placed on factory roofs.

The goal is to have the main industrial units with part of their energy consumption derived from photovoltaic energy. The energy produced will be for self-consumption, representing 20% of the electrical energy consumed by Corticeira Amorim.

In 2023, 15.41 MWp were installed, producing 40,225 GJ of energy from these panels, which corresponds to 8.9% of the total electrical energy consumed in Portugal (450,062 GJ).

Energy efficiency forum

The efficiency forum is an annual or biannual meeting in which the different energy managers take part, acting as a means of sharing and interaction. The aim of this meeting is to: (i) monitor the consumption of energy resources available to the Company's factories (in particular cork powder, electrical energy, natural gas and propane gas); (ii) maintain involvement and the urgent need to adapt technology to increase production and ensure the quality of the industrial units; (iii) forecast needs and present scenarios for consumption of energy resources, with evaluation of scenarios between needs and adaptation of technology; and (iv) motivate, carry out and control the development and performance of actions. In 2023, the 37th forum was held, involving the participation of 28 employees from these areas.

4.2.3.3 DIRECT (SCOPE 1) AND INDIRECT (SCOPE 2) GHG EMISSIONS

	Unit of measurement	2023	2022	2021
GHG emissions (scope 1 and 2)
Direct emissions (scope 1)	tCO2eq	5,719	5,687	5,898
Indirect emissions (scope 2)	tCO2eq	28,209	31,534	38,397
Total GHG emissions (scope 1 and 2)	tCO2eq	33,928	37,221	44,294
Carbon intensity	tCO2eq /M€	47.5	52.2	65.7

Indirect emissions (scope 2) calculated using the market method. Carbon intensity: energy consumption over the consolidated sales of the sustainability perimeter.

Scope 1 and 2 emissions fell by 8.8% compared to the previous period, while carbon intensity fell to 47.5 tCO2eq/M€ (2022: 52.2 tCO2eq/ M€).

These reductions, in line with the transition plan for climate change mitigation, were due to various initiatives such as:

• Promoting energy efficiency (6.2%);
• Renewable energy consumption (29.1%);
• Use of renewable energy sources as the main source of energy, reduction of activities related to coal, oil and gas and variation in activity (64.8%).

4.2.3.4 OTHER INDIRECT (SCOPE 3) GHG EMISSIONS

	Unit of measurement	2023	2022	2021
GHG emissions (scope 3)
Purchase of goods and services tCO2eq		112,699	129,885	145,114
Upstream transportation and distribution	tCO2eq	49,016	31,417	22,558
Downstream transportation and distribution	tCO2eq	21,844	42,034	39,834
Employees commuting	tCO2eq	2,403	2,697	3,231
Business travel	tCO2eq	722	344	307
Waste generated in operations	tCO2eq	207	270	288
Total GHG emissions (scope 3) tCO2eq		186,891	206,646	211,332

Corticeira Amorim annually monitors its scope 3 emissions. To determine the categories to be monitored, as well as the methodologies and assumptions to be applied, Corticeira Amorim regularly conducts an exhaustive corporate GHG inventory, drawn up by external experts. The last one was carried out by EY, based on information from the year 2018, which covered the activities developed in Portugal and was based on the GHG Protocol methodology (for further information, please consult the Sustainability Report 2018, available at https://www.amorim.com/ en/sustainability/reports/).

In order to define the scope 3 emission categories to be monitored, Corticeira Amorim applied a materiality limit of 3%, taking into account the proportion of the category in total scope 3 emissions. To ensure comparison with previous years, the transport categories of waste generated in operations and business travel (which have proportions of less than 3% in the total scope 3 categories) were also included.

Corticeira Amorim's scope 3 emissions derive primarily from the purchase of goods and services, upstream and downstream transportation and distribution, with a minor contribution from waste generated in operations, business travel and employees commuting.

Corticeira Amorim considers that emissions associated with the processing of sold products, use of sold products and end-of-life treatment of sold products do not have material importance. Additionally, the Company does not have the necessary information to account for the emissions associated with these activities due to the comprehensive nature of the waste treatment systems in the different countries to which it exports and the complexity of the information gathering process.

In 2023, scope 3 emissions fell by 11.4% to 186,891 tCO2eq. The main changes result from the purchase of goods and services and upstream and downstream transportation and distribution categories. The reduction in the Company's activity was the main cause of the reduction in emissions in the purchase of goods and services and downstream transportation and distribution categories. The integration of new activities in Amorim Cork's spirits segment had an impact on the localisation of some supplies, which led to an increase in CO2eq emissions in the upstream transportation and distribution category. The Company is also implementing a sustainable packaging project, which has resulted in a reduction in CO2eq emissions in the downstream transportation and distribution category.

Corticeira Amorim continues to work towards reducing scope 3 emissions and intends to establish reduction targets based on science, through replacement of carbon-intensive raw materials, selection of logistics suppliers with reduced CO2 emissions and action at the level of packaging and logistics. To this end, it has launched the scope 3 emissions reduction programme, with various initiatives and projects.

Scope 3 emissions reduction programme

The involvement of the entire Organisation and supply chain, especially suppliers of raw materials and transport, is fundamental for the reduction of scope 3 GHG emissions. Corticeira Amorim has defined three areas of intervention for this programme:

• • Reduction:
  • • Replacing carbon-intensive raw materials with more sustainable alternatives;
  • • Taking action as regards packaging and logistics to reduce environmental impact;
• • Measurement:
  • • Increasing the coverage of organisational boundaries in the calculation of the Company's carbon footprint;
  • • Improving information collation methodologies;
  • • Increasing the percentage of emissions calculated based on data obtained directly from suppliers or partners in the value chain;
• • Suppliers:
  • • Selecting suppliers according to their GHG emission reduction targets;
  • • Encouraging suppliers to adopt more sustainable practices.

A number of initiatives and projects are being implemented, including: setting quantitative targets for the consumption of non-renewable virgin materials, the sustainable packaging project and the implementation of a sustainability information system.

Sustainability information system

As a result of the growing demands on the sustainability reporting model and the number of companies in Corticeira Amorim's universe, as well as the need to harmonise the sustainability perimeter with the financial perimeter, there was an urgent need to implement a system for managing and communicating sustainability information.

This new system represents a significant milestone in Corticeira Amorim's journey towards its strategic goals, enabling a more robust approach to collecting, analysing and communicating sustainability-related data, including with regard to scope 3 emissions. The new system allows sustainability data to be centralised on a single, scalable platform, improving data robustness, efficiency and accessibility for internal and external stakeholders.

4.2.3.5 AVOIDED GHG EMISSIONS

	Unit of measurement	2023	2022	2021
Avoided GHG emissions
Biomass	tCO2eq	67,607	77,587	83,449
Photovoltaic	tCO2eq	4,100	1,164	36
Cogeneration	tCO2eq	0	1,016	433
Efficiency measures	tCO2eq	871	1,675	2,193
Total avoided GHG emissions	tCO2eq	72,578	81,442	86,111

In terms of the Company's operations, the commitment to renewable energies and other good practices resulted in around 72.6 thousand tCO2eq avoided in 2023, due to the use of biomass to replace natural gas (68 thousand tCO2eq), the use of renewable electrical energy to substitute fossil fuels (4.1 thousand tCO2eq) and the implementation of energy efficiency measures (871 tCO2eq).

Contribution of cork oak forests to climate regulation

Researchers coordinated by the University of Aveiro have developed a simulation model to calculate the carbon footprint of the cork sector. Applying this model to Portugal, the world leader in cork production, showed that the biggest impact is from cork agglomeration due to the materials used for the agglomeration process (e.g. resins).

The study found that considering biogenic emissions and carbon sequestration in the calculation of the cork sector's carbon footprint has a major influence on the result. Specifically, taking biogenic carbon into account results in a decrease in the sector's carbon footprint, mainly due to the carbon sequestration that occurs in the forest.

According to this study, the sequestration of carbon dioxide from the atmosphere is greater than the gases emitted throughout the sector from the forest to the final destination of the cork products and, therefore, the cork sector is an effective greenhouse gas sink.

The study emphasises the importance of cork oak forests in mitigating climate change. The sequestered carbon is not released into the atmosphere and remains stored for a long time, bearing in mind that cork is harvested without deforestation and cork oaks can live for up to 200 years on average.

Further information available at:

https://www.sciencedirect.com/science/article/abs/pii/ S0048969716310658.

© Augusto Brázio, 2015

NDtech technology, which for the first time introduces individual sorting on cork stopper production lines, using gas chromatography and in a short space of time.

4.3 AIR QUALITY AND POLLUTION

(SDGs 6, 7, 11, 13)

4.3.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Corticeira Amorim has appropriate management systems in place to meet legal requirements, internal regulations and established policies on atmospheric emissions and pollution, implementing measures to mitigate the specific impacts of each BU, in particular through:

• Compliance with all legal requirements;
• Audits for pollution control, in particular to detect failures in systems and processes;
• Regular noise measurements and active measures to reduce noise, such as cladding of machines and engines;
• Controls of gaseous emissions from chimneys and specific measures to avoid dust or particulate emissions, such as the application of filters;
• Training for employees and third parties on best practices to prevent the occurrence of spillages, making spill containment kits available;
• Response procedures in place for emergencies and installation or maintenance of pollution prevention devices (such as containment basins, among other measures);
• Mitigation actions for future occurrences, which include detailed investigation of the occurrence, corrective actions to prevent recurrence and communication of the lessons learned.

Corticeira Amorim is committed to minimising its impact resulting from atmospheric emissions. It is therefore working to modernise and adapt its boilers, having invested around 2.03 million euros by 2023, in actions that include conservation and repair, improvements in safety, optimisation and monitoring, and adaptation for the use of other biomasses. In addition, it regularly monitors pollutant emissions of gases or particles into the atmosphere using methods based on existing standards and applicable to emission limit values (ELVs) in accordance with the law in force.

4.3.2 METRICS AND TARGETS

4.3.2.1 POLLUTANT EMISSIONS

	Unit of measurement	2023	2022	2021
Atmospheric emissions
Particles	t	67	85	66
Nitrogen oxide (NOx)	t	142	129	125
Volatile organic compounds (VOCs)	t	45	55	56

Atmospheric emissions at Corticeira Amorim result mainly from the burning of fuels in boilers to generate energy. Emissions include carbon dioxide (CO2), total suspended particles (TSP), nitrogen oxides (NOx) and volatile organic compounds (VOCs), and these are not associated with emissions of odorous gases.

In addition, the Company monitors pollutant emissions of gases or particles into the atmosphere using methods based on existing standards and applicable to emission limit values in accordance with the law in force.

In 2023, TSP emissions totalled 67 t, NOx emissions 142 t and VOCs 45 t.

Corticeira Amorim remains committed to reducing its environmental impacts and is implementing various initiatives to reduce emissions, such as:

• Investing in cleaner and more efficient technologies, particularly in terms of modernising and adapting boilers;
• Optimising production processes;
• Implementing environmental control measures;
• Monitoring emissions.

4.4 WATER RESOURCES

(SDGs 6, 7, 11, 13)

4.4.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Corticeira Amorim recognises the importance of responsible water resource management in its upstream and downstream operations and value chain, and takes action to identify the impacts, risks and opportunities associated with these resources.

The Company implements a comprehensive approach to analysing activities that have an impact on water resources, meaning it considers applicable laws and regulations, international standards and guidelines, and best practices in the sector.

The Organisation works to mitigate negative impacts and seize opportunities related to water resources. Specifically, the impacts on water collection, consumption, effluent treatment and discharge are monitored. In addition, it analyses water stress areas using the Aqueduct Water Risk Atlas tool (wri.org), with the aim of identifying the areas most at risk of water scarcity and developing more efficient management measures.

As for the impact on the upstream and downstream value chain, it assesses the direct and indirect water footprint associated with operations and products by carrying out life cycle assessments on those products. Currently, the products analysed account for 63.9% of the Company's consolidated sales. Additional information in Chapter 4. Environmental information/4.7 Green products/4.7.2 Metrics and targets/4.7.2.2 Life cycle assessments.

Recognising the importance of stakeholder participation in the decision-making process, open and continuous dialogue sessions are held to understand stakeholder concerns, expectations and perceptions on sustainability issues, particularly as regards the use of water resources. Information on stakeholder communication channels is available in Chapter 2. Corticeira Amorim/2.5 Stakeholders/2.5.1 Communication channels.

Corticeira Amorim is committed to the responsible management of water resources and, to this end, has adopted a series of policies and practices aimed at identifying, evaluating, managing and/or addressing the material impacts, risks and opportunities related to these resources. The Company's approach is based on three pillars:

• Reducing consumption: the aim is to reduce water use and improve efficiency in the use of this resource;
• Treatment: the aim is to reduce water pollution;
• Hydrological regulation: the aim is to conserve water resources through projects to restore and protect aquatic ecosystems.

Commitment to rational water consumption

The Energy, Environment and Biodiversity Policy, formalises the Company's commitment to making rational use of resources, minimising the consumption of water, paper and energy, reducing the generation of waste and emissions, encouraging recycling and seeking environmentally friendly solutions.

In addition, as part of the Sustainable by nature programme, a target has been set for activities in Portugal for the 2021-2024 period: 1%/year reduction in water consumption intensity.

Herdade da Venda Nova

With an area of 251 hectares, a Herdade da Venda Nova is currently the largest cork oak plantation, using a drip irrigation technology. It is part of the FIP that Corticeira Amorim has been implementing since 2013 (Chapter 4. Environmental information/4.5 Biodiversity and ecosystems/4.5.3 Metrics and targets/4.5.3.1 Forestry Intervention Project). Drip irrigation, which will be used only until the first harvest of cork, aims to ensure ideal conditions for the survival and growth of cork oak trees, ensuring a faster and more effective occupation of the forest area. By halving the time needed to harvest cork and increasing the success of the plantations, the aim is to ensure greater profitability on the one hand and, on the other, greater future availability of raw materials to ensure the sustainability of the industry.

This estate has around 100 thousand cork oak trees and a water storage tank of approximately 30 thousand m3. Given the project's special characteristics, the aspects related to water are not consolidated with the information included in this report. It is Corticeira Amorim's intention to work in order to consolidate the methodology used for reporting environmental aspects related to agroforestry activities.

4.4.2 METRICS AND TARGETS

4.4.2.1 WATER CONSUMPTION

	Unit of measurement	2023	2022	2021
Water consumption
Water withdrawal	m3	629,088	631,704	654,309
Water discharges (effluent)	m3	151,728	154,394	163,831
Water consumption	m3	477,445	477,470	490,846
Water consumption intensity	m3/M€	668	670	728
Change in specific consumption %		-0.3%	-7.9%	-31.0%

Unit of measurement used is m3 ; to convert to ML, values should be divided by 1000. Water consumption = water withdrawal – water discharges +/- water storage. Water consumption intensity: water consumption over the consolidated sales of the sustainability perimeter.

Water withdrawal totalled 629.1 thousand m3. Most of the water used by Corticeira Amorim is sourced from groundwater (91.5%), with the remaining (8.5%) obtained from third-party water suppliers. Around 24.1% of the water was returned to the environment and approximately 75.9% was consumed – integrated into the product or used to produce steam.

Corticeira Amorim has no indication that the hydrographic basins in which the water is collected are under water stress. For the classification of water-stressed areas in the scope of this report, the Aqueduct Water Risk Atlas (wri.org) tool was used, according to which 50.8% of the water withdrawal activities occur in high-risk water-stressed areas.

Aware of the need to preserve this fundamental resource for the planet, Corticeira Amorim has an approach based on three pillars reduction of consumption, treatment, and hydrological regulation, which is supported by the zero-water waste programme.

Zero-water waste programme

Corticeira Amorim established a plan for the 2021-2024 cycle to reinforce its commitments to the use of water resources.

In order to achieve the goal of reducing water consumption intensity by 1% per year by 2024 in its operations in Portugal, a working group was set up in 2021, which brings together those responsible for the different BUs on a quarterly basis in order to discuss measures to reduce water consumption and share good practices. Several initiatives have been implemented:

• • Audit and methodology: an audit was carried out on all facilities in Portugal and a common methodology for determining water consumption was established;
• • Actions: based on the best practices of the BUs, a list of various actions was drawn up, including: i) introducing improvements to the water network map, including the supply line to consumers and consumers' discharge into the WWTP or sewerage; ii) acquiring automatic metering systems, especially in facilities where there are already a large number of meters, with the aim of reducing the possibility of errors in collecting information; iii) listing the variables that influence water consumption by process, especially in areas of intensive consumption; iv) adopting the good practices of the ISO46001 Standard - Water efficiency management systems, namely the creation and monitoring of performance indicators for the main water consumers.

In 2023, the operating costs and investments made in this area totalled more than 321.1 thousand euros in 21 measures. Amorim Cork Composites' measures include the reuse of water from the pans of the laminators, which has resulted in savings of 13 m3/year.

Reducing consumption

Various actions are under way, mainly centred on management and monitoring, including the launch of the water reuse project by Amorim Florestal.

Treatment

The larger industrial facilities collect and treat wastewater in their own wastewater treatment plants. Effluent treatment is directly linked to pollution prevention and involves the removal of impurities generated in the manufacture of products, through primary, secondary or tertiary treatment, as appropriate. The treated effluent is discharged into a municipal collector. Periodic analytical controls of the volumes and parameters of the discharges are conducted, as well as monitoring of the receiving environment, in accordance with the stipulations established in the wastewater discharge licence. Corticeira Amorim continuously invests in order to optimise the WWTPs.

Hydrological regulation

One of the ecosystem services provided by cork oak forests is the regulation of the water cycle. The left bank of the Tagus-Sado rivers is about 36% occupied by cork oak trees and is one of the most productive and deepest aquifer systems in the Iberian Peninsula, which is recharged by the infiltration of rainwater into the soil. The interception of rainwater by cork oak trees is important in protecting the soil from water erosion, thereby contributing to the fight against desertification. Information on Corticeira Amorim's actions to protect the cork oak forests and their ecosystem services is available in Chapter 4. Environmental information/4.5 Biodiversity and ecosystems.

Water reuse project

This project, launched by Amorim Florestal, involves the utilisation of industrial wastewater from the cooking process. After physicochemical and biological treatment, a filtration and disinfection system using ultraviolet (UV) radiation was installed. The filtration system consists of three filters: activated carbon, glass and sand. Filtration permits the removal of particles that were not removed in decantation, as well as associated microorganisms, and disinfection by photo-oxidation (UV) enables the elimination of bacteria, thus ensuring good effluent quality.

The conservation of water resources and the efficient use of water are highly relevant objectives for the Company. With the new filtration and disinfection system, the aim is to reuse all industrial effluent, reducing the consumption of water from boreholes and discharges into the municipal collector, and increase the availability of water, thereby relieving water resources, as well as reducing costs. In 2023, it was possible to reuse around 6,687 m3 of water, around 12% of the BU's industrial effluent. Given the success of the system installed, Amorim Florestal will make the necessary adaptations to the infrastructure in 2024 in order to mainstream this system in all industrial units by 2025.

4.5 BIODIVERSITY AND ECOSYSTEMS (SDGs 11, 12, 15)

4.5.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Over the last few decades, cork oak trees (Quercus suber L.) have been losing their vitality, which is attributed to poor management practices, the occurrence of harmful biotic agents and climate change. The preservation of the cork oak tree and of the cork oak forest ecosystem is essential if we are to continue to enjoy not only the cork produced but also the many other ecosystem services that are so valuable to the people of the Mediterranean basin.

Each year, Corticeira Amorim implements various actions to maintain and increase the areas of cork oak forest, with a view to promoting the conservation of the respective natural and sociocultural values, including ecosystem services, preservation of species and respect for the rights of workers and local communities.

Although no trees are cut down to obtain cork, forest management certification ensures best practices in responsible forest management. For this reason, Corticeira Amorim invests in forest certification, safety at work, technical training and support programmes for forest owners, far beyond the forest areas under its direct management, with the aim of reaching a greater number of owners and encouraging them to use best management practices and to invest in the conservation of cork oak forests and their ecosystem services, whether it be the provision of cork, climate regulation, fire prevention, hydrological regulation and soil protection or the maintenance of habitats and biodiversity.

In view of the activities developed by Corticeira Amorim, based on the use of cork, the promotion of cork oak forests, its biodiversity and ecosystem services assume fundamental importance.

Corticeira Amorim undertakes actions for the preservation, development and enhancement of the value of cork oak forests, based on the following axes:

• Increased knowledge about the environmental impact of cork products and their associated ecosystems;
• Affirmation of cork-based solutions and the development of the cork oak forests, as guarantors of the ecosystem;
• Promotion of internal and external awareness initiatives;
• Proactive approach to the discussion of policies and proposal of measures for protection of the cork oak tree, preservation of the cork oak forest, promotion of the cork sector, certification of forest management systems and remuneration for the environmental services provided by the cork oak forest.

The Company has assumed various commitments, which are reflected in its internal policies or external commitments.

4.5.2 POLICIES RELATED TO BIODIVERSITY AND ECOSYSTEMS

Commitment to biodiversity

The promotion of the cork oak forest, biodiversity and associated ecosystem services is one of Corticeira Amorim's core material issues. The Company is committed to preserving the cork oak forest and ecosystem services, including biodiversity, by increasing knowledge, mobilising resources and proposing measures.

Corticeira Amorim made a voluntary commitment to Act4nature Portugal, a business initiative launched by BCSD Portugal (part of the WBCSD worldwide network). The scope of the commitment includes Corticeira Amorim's operations in Portugal.

The table below shows the progress made in relation to the ten commitments:

Individual commitments	Monitoring indicators	Start / End	Progress in 2023	References
Include the protection of biodiversity in the corporate Code of Business Ethics and Professional Conduct	Code of Business Ethics and Professional Conduct published on the Corticeira Amorim's website	2020-2020	Fulfilled	Code of Business Ethics and Professional Conduct available at https://www.amorim.com/en/investors/corporate governance/corporate-regulation-and-policies/.
Develop initiatives that foster cork oak forests, biodiversity and ecosystem services	Number of initiatives and results	2021-2024	Fulfilled	Numerous actions were carried out to promote cork oak forests, biodiversity and ecosystem services. Information available in Chapter 4. Environmental information/4.5 Biodiversity and ecosystems.
Expand knowledge on the environmental impact of cork products and of the ecosystem that they support	Number of studies and results	2021-2024	Fulfilled	Studies were developed on the environmental impact of cork products and the cork oak forest ecosystem. Information available in Chapter 4. Environmental information/4.5 Biodiversity and ecosystems and in 4.7 Green products.
Promote biodiversity in the value chain, ensuring a 5% reduction in the consumption of virgin non-renewable plastics/chemicals per year	Annual variation in the consumption of virgin non- -renewable plastics/chemicals	2021-2024	Fulfilled	Information on achievement of 2030 targets and progress in Chapter 3. Sustainable by nature programme/3.1 Quantitative targets for 2030 and progress.
Encourage the integration of biodiversity into the production process by ensuring that 2/3 of the energy consumed is from renewable sources	Percentage of renewable energy in the production process	2021-2024	Fulfilled	Information on achievement of 2030 targets and progress in Chapter 3. Sustainable by nature programme/3.1 Quantitative targets for 2030 and progress.
Reduce the impacts on the production process by ensuring energy efficiency savings of 2% per year	Percentage of avoided energy in the production process	2021-2024	Fulfilled	Information on achievement of 2030 targets and progress in Chapter 3. Sustainable by nature programme/3.1 Quantitative targets for 2030 and progress.
Increase resource management efficiency by ensuring a waste recovery rate of 90% or higher	Waste recovery rate (% of non -cork recovered waste)	2021-2024	Fulfilled	Information on achievement of 2030 targets and progress in Chapter 3. Sustainable by nature programme/3.1 Quantitative targets for 2030 and progress.
Keep a proactive role in the development of what is already a vast field of cork applications, in order to ensure the sustainability and biodiversity of cork oak forest associated biodiversity	Annual investment in R&D+I and results	2021-2024	Fulfilled	Chapter 4. Environmental information/4.7 Green products.
Implement initiatives that raise employee awareness of biodiversity issues	Number of initiatives and their results	2021-2024	Fulfilled	Corticeira Amorim's environmental education programme was designed with the objective of supporting schools in environmental education and raising the awareness of the community in general and employees, of the need to protect and enhance the value of Portugal's forests, including cork oak forests, and to promote cork recycling. Information on the initiatives undertaken is available in Chapter 5. Social information/5.2 Community/society and innovation/5.2.2 Metrics and targets/5.2.2.2 Culture and knowledge/ Environmental education and action.
Publish the monitoring of the commitments made	Annual Sustainability Report published on the Corticeira Amorim's website	2021-2024	Fulfilled	This report.

https://bcsdportugal.org/wp-content/uploads/2021/07/Act4nature\_relatorio\_2020\_EN\_VF.pdf

Commitment to non-deforestation

The cyclical nature of the regeneration of cork oak bark (cork) allows harvesting to take place without deforestation. The cork oak tree is a slow growing tree, from which cork can be harvested 15 to 18 times during its lifetime. The first harvest can only occur when the trunk of the tree reaches a PBH of 70 cm. The cork removed in this first harvest is called "virgin". After nine years, "secondary" cork is harvested. Then, "amadia" or "reproduction" cork is harvested every nine years. The process of cork harvesting is called "descortiçamento" (stripping).

Cork oak forests are located in the Mediterranean basin, one of the world's 36 biodiversity hotspots. As an indigenous species, the cork oak is perfectly adapted to local climatic conditions and arid soils, lives on average 200 years and offers a very relevant set of ecosystem services, in particular cork supply, climate regulation, fire prevention, soil protection and prevention of desertification, in addition to maintaining biodiversity.

Agroforestry activity

Given their special characteristics, the environmental indicators of the Cosabe, Amorim Florestal III and Herdade de Rio Frio companies associated with agroforestry projects are not consolidated for the purposes of this report. Corticeira Amorim aims to work to strengthen the methodology used for reporting environmental aspects related to agroforestry activity.

Energy, Environment and Biodiversity Policy available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

4.5.3 METRICS AND TARGETS

4.5.3.1 FORESTRY INTERVENTION PROJECT

	Unit of measurement	2023	2022	2021
Forestry Intervention Project
Forest estates under management	ha	8,181	8,181	6,326
Intervened forest estates under management	ha	1,405	381	251
Planted/densified forest estates under management	ha	1,029	381	251
Planted cork oak trees	no.	387,675	154,610	100,400

Accumulated values at the end of the period.

To alleviate growing concern over the reduction in productivity of existing cork oak plantations, Corticeira Amorim has been developing the FIP, which aims to preserve and ensure the sustainable development of cork oak forests.

Under the motto "Caring for the present, building the future", the FIP began in 2013 as a research project that sought a new model of subericulture using drip irrigation. This technique allows a very significant increase in the success of the planting and, at the same time, a greater initial growth of the trees, thus reducing the first cycle of exploitation from the current 25 years to around half that time.

Drip irrigation will be used until the first harvesting of cork, at which point it will be removed and the cork oak will return to its normal growth, with cork harvesting conducted at nine-year intervals.

• Forest management (Induction): Coordinate new plantations and provide owners with technical support in the forestry area. Currently, 130 ha of forest areas that do not belong to, or are not managed by Corticeira Amorim, are being monitored. The work conducted to date aims to collect and compile existing knowledge on various topics and to produce support and supporting documentation with practical application, both in existing cork oak forests and in new plantations. The forest management office also aims to provide support to forest producers on such diverse subjects as treatments for pests, fertilisation and pruning.
• Applied forestry R&D (Intervention): Some areas of cork oak trees were planted with drip irrigation to aid in their establishment. The primary objective behind this initiative is to study this new forestry model by assessing the effect of water on cork production and its economic viability. In the future, this activity will make it possible to define the best protocol to follow for planting and managing areas using this forestry model. • Fundamental forestry R&D (Investigation): To produce cork oaks plus (better adapted to emerging climatic scenarios, pests and diseases) through a cork oak improvement programme. Cork oak plus specimens from different origins and soil and climate conditions were phenotypically selected in order to establish a multiplication and improvement programme. In parallel, molecular markers associated with phenotypic characteristics of interest, such as rapid growth and cork quality, are being identified. In the future, these markers will make it possible to identify, select and produce cork oak trees adapted to different conditions, maximising productivity and resilience.

Intervention in forest estates

Awareness of the urgent need for intervention in cork oak forests has led Corticeira Amorim to invest directly in agroforestry estates, totalling 8,181 ha: Herdade da Baliza, Herdade da Venda Nova and Herdade de Rio Frio. In these properties, since 2021, around 1,405 ha have been intervened with management actions aimed at the cork oaks, of which 1,029 ha consisted of plantations/ densifications, where around 388 thousand cork oaks were installed.

Corticeira Amorim intends to continue increasing its active participation in intervention in new cork oak areas, with the target of intervening in an area of 3,000 hectares of forest by 2024.

The goal is to conduct applied research into the impacts of irrigation, fertilisation, nutrition and soil on the cork oak and to help promote and disseminate the implementation of new planting and management techniques for the cork oak forest that are more efficient and resilient to the forecast climate scenarios.

To finance the investment in forest estates, which amounted to 56.9 million euros, Corticeira Amorim has made use of green financing instruments, which are noted in Chapter 7. Sustainable finance. Green financing instruments are considered effective tools to support projects with positive impacts on climate change mitigation and are aligned with the four components of the London Market Association's Green Loan Principles of February 2021 and the International Capital Market Association's Green Bond Principles of June 2021 (with Appendix 1 of June 2022), respectively.

Cork oak tree improvement programme

The main aim of this project is to identify and produce cork oak trees that are better adapted to emerging climate scenarios, pests and diseases, maximising their productivity and resilience. To this end, cork oak plus specimens from different origins and soil and climate conditions were selected and an in vitro micropropagation programme was established. At the same time, several molecular markers associated with phenotypic characteristics of interest, such as growth, resistance to insects (flathead oak borer) and cork quality, are being identified and selected, which will make it possible to validate the quality of the genotypes produced. There are also plans to create a molecular chip with which it will be possible to identify new genotypes for introduction into the micropropagation programme. The first field trials are scheduled for 2024-2025.

4.5.3.2 REMUNERATING ECOSYSTEM SERVICES

Ecosystem services can be translated as direct and indirect contributions of nature to human well-being. Biodiversity loss significantly affects the provision of ecosystem services on which humans depend, since biodiversity underpins several ecological processes. There is a consensus that quantifying ecosystem services in monetary and non-monetary values is a necessary tool to operationalise this concept in decision-making and to contribute to a pathway aligned with the biodiversity strategies, European Ecological Pact and the UN SDGs.

The cork oak forest plays an important role in promoting ecological functions such as soil conservation, carbon storage and water retention, enhanced by its multifunctional characteristics and existing biodiversity. Portugal has the world's largest area of cork oak forest and is simultaneously the world's largest producer of cork. The vitality of cork oak forests has been declining over the years, weakening their potential to provide services to society.

Corticeira Amorim is the world's largest producer of cork products, playing an important role in promoting sustainable forest management and creating a set of valuable interconnections between cork oak forests, business and people, as well as increasing knowledge about cork oak forests and the ecosystem services they make possible.

In this context, it began studying the value of ecosystem services more than ten years ago, a subject that has already been launched for public discussion by various specialists. In the most recent study, produced by EY in 2019, it was concluded that, on average, the ecosystem services of a well-managed cork oak forest provide benefits to society of over €1,300/ha/year.

The Company remains committed to promoting, protecting and increasing knowledge about the cork oak forest to enable more sustainable management, namely by proactively discussing policies and proposing measures for the protection of the cork oak, the preservation of the cork oak forest, the promotion of the cork sector, the certification of forest management systems and the remuneration of the cork oak forest's environmental services.

The value of the cork oak forest ecosystem services

In 2019, Corticeira Amorim commissioned a study entitled "The value of the montado ecosystem services", produced by EY, in which it was concluded that more profitable and biodiverse ecosystems can be enhanced and perpetuated through more sustainable production systems, thereby fostering the services provided, combating biodiversity loss and also contributing to carbon neutrality and the UN SDGs.

By considering four case studies, EY was able to identify the three main groups of ecosystem services provided by cork oak forests. The quantitative analysis was based on the estimation of the costs avoided and demonstrated that the capacity of cork oak forests to provide services to society is highly variable and fundamentally depends on management practices and the soil and climate conditions of the territory.

Regulation:

Provision:

• • Cork;
• • Wood;
• • Animal
• products; • Medicinal and aromatic plants and
• herbs; • Mushrooms;
• • Honey.

maintenance and biodiversity; • Pollination.

regulation: fire prevention; • Hydrological regulation and soil protection; Culture:

• Recreation activities and tourism; • Scientific and educational activities; • Cultural identity and landscape.

Three of the ecosystem services were monetised: global climate regulation, extreme event regulation – fire prevention; hydrological regulation and soil protection. The other services identified were evaluated with quantitative data wherever possible but were not monetised.

• Habitat

The study concluded that, on average, the ecosystem services of a well-managed cork oak forest provide benefits to society in excess of €1,300/ha/year.

Climate regulation:	Fire prevention:	Hydrological regulation and soil protection:
€596	€546	€220

• Climate regulation; • Extreme events

Cork inlay for Amorim Cork Flooring.

4.6 CIRCULAR ECONOMY

(SDGs 8, 12)

4.6.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

The Company acknowledges the importance of operating sustainably and incorporating circular economy principles in its practices. As such, one of its principal mottos is "nothing is lost, everything is valued", because 100% of cork is used in the production process, including the smallest granules of the raw material, which are used as an energy source.

The Company regularly analyses its assets and activities in order to identify impacts, risks and opportunities, taking into account direct and indirect operations along the value chain. Rigorous methodologies are used for this, namely life cycle assessments, as described in Chapter 4. Environmental information/4.2 Climate change and 4.7 Green products. The assumptions include analysing the resources consumed and the waste generated. To ensure a holistic view, consultations are held with stakeholders, allowing their concerns to be integrated into decisions, as described in Chapter 2. Corticeira Amorim/2.5 Stakeholders and 2.6 Definition of strategy.

Commitment to eco-efficient processes and the circular economy

Corticeira Amorim's Energy, Environment and Biodiversity Policy establishes, among other commitments, the principle of promoting good environmental practices among its suppliers and clients, encouraging responsible consumption and the circular economy by reducing waste, reducing the amount of raw materials used, limiting packaging and favouring recycled and/or recyclable materials and "sustainable" raw materials (for example, from sustainably managed forests).

Corticeira Amorim integrates sustainable practices in the development of its products by choosing materials with less environmental impact and applying an integrated production process that, since 1963, has promoted the reuse of all by-products associated with cork processing and the production of durable products that can be reused, recycled or composted. These practices are now one of the Organisation's flagships and are focused on the following lines of action:

• Integrated production process that reuses all by-products associated with cork processing;
• Reducing the generation of non-cork waste and promoting its valorisation;
• Extending the life of materials through industrial symbioses;
• Recycling of cork products at the end of their life cycle.

Energy, Environment and Biodiversity Policy available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

4.6.2 METRICS AND TARGETS

4.6.2.1 MATERIALS

	Unit of measurement	2023	2022	2021
Weight of materials
Renewable virgin	%	88.7%	82.3 %	81.9 %
Non-renewable virgin	%	7.8 %	11.5 %	11.8 %
Recycled	%	3.6 %	6.2 %	6.3 %
Change in weight of non- -renewable virgin materials	%	-32.5 %	-2.7%	-10.6 %

More detailed information in Chapter 8. Consolidated sustainability indicators/8.2 Environmental.

To develop its business activity, Corticeira Amorim consumes a set of materials, in particular raw materials, subsidiary materials and packaging materials, including cork, wood, paper, plastics and chemicals. Materials such as glass, metal or minerals represent less than 0.1% of the total. To the best of its knowledge, Corticeira Amorim does not use gold, tin, tantalum, tungsten or rare earths in its production process.

Corticeira Amorim recognises the importance of integrating circular economy principles into all stages of a product's life cycle. It therefore prioritises the use of renewable and/or recycled materials upstream, the reuse of materials during the production process and durability and recyclability during the product's use phase.

The Company continuously strives to reduce the weight of nonrenewable virgin materials in order to achieve the target set for the period 2021-2024 of a 5% annual reduction in this indicator in its operations in Portugal.

Corticeira Amorim achieved its 2023 targets and reduced its consumption of non-renewable virgin materials, increasing its use of renewable alternatives.

As a result, the weight of non-renewable virgin materials fell by approximately 32.5%, accounting for only 7.8% of total materials consumed (2022: 11.5%). This result is reflected in the increased consumption of renewable materials, which reached 88.7% of the total in 2023 (2022: 82.3%).

The 40% reduction in plastic consumption at both Amorim Cork Flooring and Amorim Cork should also be emphasised. In this regard, we should highlight the fact that PVC9 ceased to be used in the entire range of Wicanders Wise products from the beginning of 2024, while the packaging process has been robotised, which has made it possible to maximise the amount of cork stoppers packaged per transport unit.

Materials were quantified through direct measurements, such as weighing or counting, and conversion assumptions were made to standardise units of measurement based on historical data or information obtained from suppliers.

9 Polyvinyl chloride

Circular economy project

The circular economy project aims to develop new technologies for processing cork not suitable for the cork stopper industry and other industrial by-products (industrial symbioses). These technologies aim to produce a wider range of composite cork of/with cork in combinations, thicknesses, densities and widths that have not been used until now. This will make it possible to extend the supply of circular economy products to the market, helping to reduce pollution and reuse materials that would otherwise be waste.

One of the most recent examples is the Go4Cork One underlay, developed by the Amorim Cork Composites BU. This is a cork solution that uses recycled PET10foam from wind turbine blade waste, embedded between fabric and a vapour barrier, both made of PET. Innovative technology was used in the conception and design of the product, making it possible to produce this integrated system in a single process. At the same time, only one type of PET material was used in its production, thus reducing the amount of waste and facilitating its circularity. To this end, a partnership was established for the supply of PET foam to make raw materials logistics more efficient and minimise the environmental impact.

Other examples include the Amorim Wise Cork Inspire 700 product range, a PVC-free waterproof flooring solution suitable for all types of spaces, as well as underlays and underscreeds for application in the construction sector.

Another example is the Go4cork Blend underlay, whose composition includes cork composites and EVA11 foam, sourced from the surplus of Nike's footwear manufacturing process (Nike Grind).

In recent years there has been a consistent commitment to incorporating recycled materials, which in 2023 accounted for 3.6% of the total materials consumed.

Amorim Cork Flooring's 100% PVC-free portfolio

Amorim Cork Flooring launched the Wicanders Wise brand, managing to make its entire product range 100% PVC-free by 2024, bringing forward the strategic objectives set for 2025. Amorim Cork Flooring's strategy is based on replacing the ranges that still used PVC with new products based on digital printing technology. This decision entailed an investment of around 7 million euros to acquire a new digital printing line which, in addition to the lifelike quality of the printed image, directly onto cork, succeeds in replicating the texture of the visuals, whether based on wood or stone.

Wicanders Wise brings together the two existing brands "in a fusion between the comfort and performance of Wicanders and the sustainability of Amorim Wise" and also presents the Bionatural option, a product made from cork and natural and recycled materials, with a 100% natural core that is 100% plant-based and 100% free from fossil-based plastics.

10 Polyethylene terephthalate

11 Ethylene Vinyl Acetate

4.6.2.2 PACKAGING MATERIALS

	Unit of measurement	2023	2022	2021
Weight of packaging materials
Renewable virgin	%	85.6 %	82.7 %	86.5 %
Non-renewable virgin	%	13.1 %	16.1 %	13.5 %
Recycled	%	1.3 %	1.2 %	0 %

More detailed information in Chapter 8. Consolidated sustainability indicators/ 8.2 Environmental.

Corticeira Amorim has an ongoing sustainable packaging project which aims to achieve 100% sustainable packaging by 2030 in its operations in Portugal, through the promotion of good environmental practices among suppliers and customers, encouraging responsible consumption and the circular economy through waste reduction, reducing the number of materials used, limiting packaging and favouring recycled and renewable materials, which are recyclable or compostable at their end of life.

Currently, the weight of non-renewable virgin packaging materials is 13.1%, a significant reduction compared to the previous year (16.1%).

Corticeira Amorim does not use glass or metallic materials in its packaging.

Sustainable packaging project

With the participation of managers from all the BUs, the aim of this project is to achieve 100% sustainable packaging in operations in Portugal by 2030. This will be achieved by promoting good environmental practices among suppliers and customers, encouraging responsible consumption and promoting the circular economy by reducing the quantities of raw materials used and waste generated, improving packaging and favouring renewable and recycled materials that are either recyclable or compostable at the end of their life. This project currently has four axes of intervention and two goals:

• • Recycle: ensure that all materials are recyclable after consumption; 100% post-consumer recyclable materials;
• • Reduce: reduce the amount consumed by packaging; • Rethink: use the best available alternative in terms of sustainable materials; 0% virgin non-renewable
• materials; • Reuse/recondition: lessen the environmental impact of upstream and downstream transport.

Among the most important projects in 2023 were the automation of the packaging sectors and the optimisation of cork stopper transport between Corticeira Amorim units, implemented in Amorim Cork's still and sparkling wine segments. A mechanical arm was purchased for the packaging stage, which entailed an investment of 1.2 million euros and, by maximising the number of stoppers packaged per transport unit, operating costs were reduced by more than 40% and transport costs by around 30%.

In addition, initiatives were continued with regard to stretch film, aimed at reducing its thickness or replacing it with paper alternatives or pallet strapping. A number of other projects have also been implemented: eliminating inserts, replacing cardboard boxes containing plastic with paper bags, replacing raffia bags with renewable or recycled alternatives, incorporating recycled materials into shrink film, recycling pallets and rethinking packaging for use between companies. Through these measures it was possible to ensure that packaging incorporated 1.3% of recycled materials.

4.6.2.3 WASTE

	Unit of measurement	2023	2022	2021
Industrial waste (non-cork)
Recovered	t	10,191	13,070	14,090
Eliminated	t	1,501	1,642	1,060
Total industrial waste	t	11,693	14,712	15,151
Waste recovery rate / Industrial waste recovered	%	87.2%	88.8%	93.0%
Industrial waste by sales volume	t /M€	16.4	20.6	22.5

More detailed information in Chapter 8. Consolidated sustainability indicators/8.2 Environmental.

The application of circular economy principles extends to the waste reduction and management strategy, whereby Corticeira Amorim takes a proactive approach to minimising waste in the production process. Materials are carefully selected and pre‑ ‑consumer waste is efficiently incorporated into the production process or sent to recycling programmes.

Corticeira Amorim does not consider any cork material to be waste (including virgin cork and other cork materials generated as a result of the Company's operations), since 100% of the cork is used in Corticeira Amorim's production process. Even the smallest cork granules are used as a source of energy. In 2023, the Company consumed 988,850 GJ of energy from burning biomass (cork powder), corresponding to 59.9% of the total energy consumed. Additional information is available in Chapter 4. Environmental information/4.2 Climate change/4.2.3 Metrics and targets/4.2.3.2 Energy consumption within the organisation.

In 2023, there was a 20.5% reduction in overall waste production, as a result of greater efficiency in the use of materials. Conversely, the consequent reduction in the generation of recoverable waste led to a slight decrease in the waste recovery rate, from 88.8% in 2022 to 87.2% in 2023, while still achieving the targets set for 2023, with a non-cork waste recovery rate of over 90% envisaged for operations in Portugal in the 2021-2024 cycle.

Recovered waste is sent to waste management operators, where it is sorted and assigned a destination for composting, recycling or energy recovery. Disposed waste, which accounted for 12.8% of the total industrial waste produced, is incinerated, in the case of biomass, or goes to landfill, in the case of textiles.

Hazardous waste, which represents 5.9% of industrial waste (691 tonnes), has its own labelling, storage, handling and transport processes and is duly transported and treated through authorised agents.

Waste is quantified through direct measurements, such as weighing or counting, and in some cases conversion assumptions are made to standardise units of measurement based on historical data or information obtained from suppliers.

Corticeira Amorim works with different partners and invests in various initiatives to achieve its goals in this area and support the circular economy, both in operations and in the value chain.

Project to increase efficiency

This project aims to intervene at different stages of the production process for cork stoppers, flooring, coverings and insulation products, to enable better use of the raw material and a reduction in the amount of waste generated. It includes the Recupera, Recork and Recupera Wise initiatives, with a total investment of 826 thousand euros, which made it possible to recover 521 tonnes of waste in 2023, through the classification of waste by homogeneous properties and the reuse of cork composite by-products created in the production of flooring. Another initiative led to a 72% reduction in the specific consumption of granules in the moulding process at the Amorim Cork BU, through reductions in compression rates, adjustments to steam valves, among other actions, which enabled 647 tonnes of waste to be recovered. Over the year as a whole, this project's various actions led to the recovery of 4,577 tonnes of materials.

4.6.2.4 CORK RECYCLING

	Unit of measurement	2023	2022	2021
Recycled cork incorporated into production
Total	t	915	1,052	801
By sales volume	t/M€	1.28	1.48	1.19

Recycled cork by sales volume corresponds to recycled cork incorporated into production over the consolidated sales of the sustainability perimeter.

The circular economy approach is not limited to the production phase. After use, Corticeira Amorim encourages the recirculation of products, materials and waste. As such, it works on programmes to selectively collect cork stoppers for recycling, transforming them into granules that give rise to new products or are used in the manufacture of new products. This significantly increases the useful life of materials, reducing dependence on virgin resources.

Since the establishment in 1963 of an industrial unit for the production of cork agglomerates from the waste left from the manufacture of cork stoppers, Corticeira Amorim has been attentive, pioneering and proactive in understanding the strategic importance of circularity. The Company's strategy to enhance the value of cork has led to development of unprecedented initiatives for the selective collection of cork stoppers for recycling. These initiatives, which originated in Portugal, are already strongly supported by other countries across five continents.

Corticeira Amorim receives cork stoppers and other end-of-life cork for treatment and grinding, in three industrial units licensed in the Portuguese territory for cork recycling. After being transformed into cork granules, the material returns to the production process and, although it can never again be used for the production of cork stoppers, it is incorporated into Amorim Cork Composites and Amorim Cork Insulation products.

In 2023, the amount of recycled cork incorporated into production fell by 13.1% to 915 tonnes (equivalent to around 203.3 million cork stoppers).

Recycled cork came from cork stoppers (69.7%) and other cork products (30.3%), mainly expanded cork agglomerate obtained from building demolitions. The reduction in the volume collected was the result of a lack of consistency in terms of collecting and recycling other cork products, with a fall of 37.9% in this area in 2023.

As for the selective collection of cork stoppers, Corticeira Amorim has stepped up its support for various initiatives involving the selective collection and recycling of cork stoppers, having collected 5.2% more cork stoppers for recycling than in 2023.

Cork stopper recycling project

Corticeira Amorim supports various initiatives for the selective collection and recycling of cork stoppers on the five continents. In 2008, it joined Green Cork, a project organised by the Environmental Non-Governmental Organisation (ENGO), Quercus, which involves various partners. This project would trigger a global movement in reuse, recovery and recycling, while also promoting reforestation with native trees. Since 2008, Green Cork has collected more than 528 tonnes of cork stoppers (2023: 29 t) and planted more than 1.6 million native trees (2023: 106 thousand). A number of campaigns conducted throughout the year have contributed to these figures, including the Green Cork Schools/IPSS/Schoolchildren Campaign and the Rolha a Rolha, Semeie a Recolha (Stopper by Stopper, We Sow Collection) Campaign. The first had Quercus, Missão Continente, Corticeira Amorim and BA Glass as partners and involved around 425 entities (IPSS, schools and scout groups) and 81 thousand students/users; the second was a partnership between Quercus, Lipor, Maiambiente, Porto Ambiente and the Municipality of Vila do Conde, which, with the support of BA Glass, Corticeira Amorim and Extruplás, made it possible to set up a door-todoor selective collection network in 2022 with more than 300 participating hotel and catering establishments.

Corticeira Amorim's Ecobouchon project in France is the world leader in the selective collection of cork for recycling. Thanks to the collection and recycling programme set up 14 years ago and the enthusiasm of the organisations involved, since the project began, France has collected and recycled around 517 million cork stoppers, equivalent to more than two thousand tonnes of cork. To date, more than 600 thousand euros have been donated for research to 50 associations, including Agir Cancer Gironde, NICOLAS, France Cancer, Bouchons Bonheur and Handi'Chiens - a project that Corticeira Amorim intends to strengthen and develop as part of its environmental commitments, calling for partnerships throughout France.

There are other initiatives in various countries: Etico (Italy), Recork (North America), Cork Life (South Africa) and Cork2Cork (Belgium, Germany, Holland, Spain, France and Italy, in partnership with NH Hotels), generating enthusiasm and a large following. Located around the world, these initiatives have a significant impact on the community, combining and supporting reforestation actions, environmental education initiatives and social responsibility activities.

The raw material recovered in this way is used for a wide variety of purposes: equipment for cars, buses, trains, boats and aeroplanes; design objects, footwear and clothing; sports materials such as surfboards or kayaks; flooring for play, leisure and recreational areas; insulation products for residential, private and public buildings; and flooring for the construction sector, among others. An endless range of solutions that often result from combining the second life of this recycled cork, with waste from industries such as the automobile, footwear or bedding industries.

Corticeira Amorim thereby helps save the planet's natural resources, reduces the costs associated with their disposal and offers the market various products that contribute to climate regulation.

More examples at

https://www.amorim.com/en/sustainability/ environmental/recycling/4301/.

Reuse of end-of-contract equipment

In 2023, Amorim Cork IT extended its partnership with Corticeira Amorim's IT equipment supplier to include the reuse of end-of-contract equipment for purposes other than dismantling/recycling.

The first collection was finalised in 2023 and involved 174 pieces of equipment, 93% of which were put back on the market, making it possible to avoid 26 tCO2eq, contribute to the circular economy and reduce waste and environmental impact. It is hoped that in the future there will be an average of two collection campaigns a year.

4.7 GREEN PRODUCTS (SDGs 9, 13)

4.7.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Green products

Amorim Cork	Amorim Cork Flooring	Amorim Cork Composites	Amorim Cork Insulation
1st choice for customers who want better quality soppers and contribute to the mitigation of climate change	100% floors & wall coverings with indoor air quality certification and contributions to sustainable construction certifications, LEED/ BREEAM	>500 applications for various sectors, allying innovation and circular economy practices	0% additives in products that are simultaneously 100% natural, recyclable, reusable and long- -lasting

Managing the environmental impact of products is a major concern for Corticeira Amorim's stakeholders. The Company is aware of the challenges facing today's world and seeks to capitalise on market opportunities and minimise the risks of harm to both people and the environment when developing its products and solutions. In addition, the Company believes that product management processes add value to products, thereby reducing potential liabilities.

In line with the commitments made in the Sustainable by nature programme, Corticeira Amorim adopts various practices in which it seeks to increase the number of products with environmental benefits and/or life cycle assessments in order to identify opportunities for reducing environmental impact at each stage of the life cycle. It also develops various initiatives to engage with stakeholders in managing the product's environmental impact and implements environmental management systems to ensure compliance with standards and regulations. It works closely with customers to understand their needs and sustainability concerns, developing customised products and solutions that meet their requirements while minimising environmental impact.

Cork is an excellent, renewable and recyclable alternative to high‑ ‑impact materials and, in a world where innovation and ecology go hand in hand, developing products based on this raw material enables Corticeira Amorim to leverage economic growth, support the transition to a circular economy and contribute to mitigating climate change. In recent years, the Company's actions have been guided by the following key principles:

• Develop new products and markets for cork, involving customers in this process, maintaining proximity and making them ambassadors for cork;
• Search for new technological solutions for products, in partnership with customers, suppliers and other entities;
• Strengthen the reputation of own brands by constantly evolving the offer in response to new market and consumer trends;
• Promoting a culture of innovation through an environment that fosters creativity, critical thinking and initiative among its workers, encouraging teamwork and mutual support across the board;
• Enhance innovative practices;
• Create an environment that encourages boldness, and assumes both risk and failure as a core component of the innovation process;
• Provide ongoing training for workers;
• Facilitate internal and external communication, establishing new and improved channels for exchanging information;
• Implement best management practices and continuously monitor their processes, identifying opportunities for improvement.

4.7.2 METRICS AND TARGETS

4.7.2.1 ENVIRONMENTAL BENEFIT OF THE PRODUCTS

Environmental benefit of the products	Total (K€)	Proportion related to mitigation of climate change through the manufacture of energy efficient equipment for buildings (%)	Proportion related to mitigation of climate change by contributing to the decarbonisation of the wine industry (%)	Total
Turnover	985,467	4.0 %	58.2 %	62.2 %

Percentage of consolidated sales within the financial perimeter.

Corticeira Amorim considers that its activity related to the production of insulation and cork stoppers has a positive impact on the mitigation of climate change. Together, these products accounted for 62.2% of the Company's consolidated sales in 2023.

The production of thermal, acoustic and anti-vibration insulation solutions can reduce noise in a room (footfall noise) and act as an acoustic barrier (impact noise), which makes their use extremely efficient. On the other hand, cork's natural thermal insulation properties reduce energy consumption, as well as providing an ideal temperature all year round and a pleasant feel, contributing to general comfort.

With regard to the production of cork stoppers, Corticeira Amorim considers that cork processing companies are a driving force in creating an economic interest for forest owners to maintain their estates. The cork oak forest is a carbon sink. The trees are not cut down during cork harvesting, a process that takes place every 9 years without damaging the tree, which can live for up to 200 years.

What is more, each tonne of cork produced can sequester up to 73 tonnes of CO212. As such, Corticeira Amorim recognises that its cork stopper production activity not only has a positive environmental impact, but also makes a significant contribution to the global goal of transitioning to a low-carbon economy. Meanwhile, cork stoppers are a packaging product with low energy consumption, which extend shelf life and reduce waste, making them an excellent option for customers looking for the best quality, while also contributing to climate regulation (Chapter 4. Environmental information/4.1 European Union Taxonomy/4.1.5 Voluntary disclosures).

4.7.2.2 LIFE CYCLE ASSESSMENTS

Life cycle assessments	Total (K€)	Proportion with complete life cycle assessments (%)	Proportion with carbon footprints (%)	Total
Turnover	985,467	24.6 %	39.3 %	63.9 %

Percentage of consolidated sales within the financial perimeter

Corticeira Amorim has been conducting several studies in order to assess the environmental impacts/carbon footprint of its main products, focusing on different stages of the life cycle, using a cradle‑ ‑to‑gate and/or cradle‑to‑grave approach, in particular: forestry activities; preparation of cork, including transportation from the forests, production, finishing and packaging. The assessment also included additional information on the carbon sequestration of cork oak forests.

These studies provide relevant information on the environmental contribution of cork products and provide Corticeira Amorim's 30 thousand national and international customers with quantifiable information on how to reduce the carbon footprint of their products.

Complete life cycle assessments can include the following impacts in particular: resource use: abiotic depletion (fossil fuels, minerals), water depletion; ecological consequences: acidification, eutrophication, global warming, ozone depletion, photochemical ozone formation. On the other hand, studies related to carbon footprints include the impact on global warming.

These studies, which cover products and solutions whose sales exceed 63.9% of Corticeira Amorim's consolidated sales, allow us to conclude, without exception, that their carbon balance is negative13, when considering the sequestration of cork oak forests and the emissions associated with their production.

At a time when carbon neutrality is one of society's challenges to ensure the preservation of planet Earth, these results illustrate the differentiating factor of cork in relation to other forest products and attest to the fact that Corticeira Amorim carries out a business activity that has a positive impact on climate regulation.

4.7.2.3 CONSUMERS AND END-USERS

The Company recognises that its operations and value chain can have an impact on consumers and end users of its products and services.

The Company maintains a robust and dynamic management system, which is continually reviewed to ensure excellence in operations. This system is subject to regular reviews by internal and external organisations, ensuring a comprehensive and impartial approach to assessing processes and practices. During the reviews, a number of key aspects are carefully assessed, ensuring that the highest standards of quality and performance are met. The results of internal and external audits are also analysed, as well as the follow‑up of corrective actions implemented as a result of these audits. In addition, the performance of external suppliers, structural or circumstantial changes that may impact operations, environmental performance and the degree of fulfilment of environmental objectives and targets, customer satisfaction, legal compliance and social performance, among others, are reviewed.

Particular attention is paid to assessing the effectiveness of actions designed to address risks and opportunities, ensuring that risks are being managed efficiently and opportunities capitalised on.

Every year, various measures are implemented to prevent, mitigate or remedy the negative impacts identified, and key areas such as product quality and safety are prioritised. In addition, customer engagement programmes are promoted to better understand their perception of services and products and to adopt business improvement measures in order to meet their needs and expectations.

Product quality and safety

In order to ensure that operations and products comply with all quality and safety requirements, Corticeira Amorim has a set of external certifications that attest to compliance with the specific requirements of different sectors and markets. These include the ISO 9001, ISO 22000, FSSC 22000, HACCP, IFS Broker, B-BBEE, BRC, BRCGS Packaging Materials certifications.

Corticeira Amorim's products are also subjected to voluntary or compulsory tests and audits, which guarantee that high standards of quality and safety are maintained.

The production processes and the characteristics of the products are clearly communicated to all stakeholders, and Corticeira Amorim has systems in place to manage the relationship with the customer and ensure that the integrity and confidentiality of information is protected.

Detailed information can be found in Chapter 2. Corticeira Amorim/2.6 Definition of strategy/2.6.3 Policies adopted to manage material sustainability matters/Management systems.

¹² https://www.apcor.pt/wp-content/uploads/2015/10/Brochura\Ambiente\\_ EN.pdf#page=18

¹³ Claims regarding carbon sequestration potential are based on studies carried out by the respective entities of the studies, available at https://www.amorim.com/en/ sustainability/studies/. More information in Chapter 9. References and scope of the report/9.3 GHG emissions/Additional information on the carbon sequestration potential of cork oak forests.

Processes for dialogue on impacts

Corticeira Amorim's predominant business model is "business to business" (B2B), which is why customer engagement programmes are a fundamental aspect of quality management, aimed, on the one hand, at better understanding customer perceptions in relation to services and products and, on the other, at adopting improvement measures in order to satisfy all needs and expectations.

Currently, larger companies already have customer engagement projects in place, namely a biannual consultation, but the low take‑up and also the constraints related to the pandemic led to a reflection on how this process was being developed.

New customer engagement models are therefore being worked on in order to obtain a representative response on product and service performance, so that the results can be an effective benchmark for continuous improvement.

The latest surveys showed an overall average satisfaction rate of 83%.

© Augusto Brázio, 2017

The mixture of cork granules and various polymers results in a diverse portfolio of materials for sound insulation and vibration control.

5. SOCIAL INFORMATION

5.1 OWN WORKFORCE (SDGs 3, 4, 5, 8)

5.1.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Corticeira Amorim believes that the interests, views and rights of its workforce, including respect for Human Rights, are fundamental to its strategy and business model. The Company is committed to creating a working environment where workers are respected and valued, and where they can develop their potential.

The Company endeavours to incorporate the interests and views of its workers in all its strategic decisions. To this end, it regularly consults with workers, to gauge their concerns and opinions and uses this information to improve its policies and practices. In the area of Human Rights, the Company guarantees that all its workers receive a fair wage, work in safe and healthy conditions and have the opportunity to develop professionally.

Corticeira Amorim has a significant impact on its own workforce, namely by offering employment opportunities regardless of gender or sexual orientation, race, place of origin or language, age, ethnicity or religion, political or ideological conviction or trade union membership.

Corticeira Amorim recognises the shortage of skilled labour in specific areas and that accidents at work pose risks to its business. These factors can jeopardise the Company's competitiveness, especially in global markets that require increasingly skilled workers. They can also lead to loss of productivity and reputational damage due to accidents, occupational diseases, absenteeism and employee turnover.

However, the Company identifies opportunities when training and developing its workers. Investing in this area can help attract and retain skilled labour. The diversity of the workforce can also contribute to innovation and creativity, while a safe and healthy working environment can increase productivity and worker satisfaction.

Corticeira Amorim promotes safe, healthy and physically, socially and psychologically balanced working environments, where employees feel encouraged to achieve high levels of performance, reaching levels of fulfilment and personal and professional development that meet their expectations. In the pursuit of these goals, Corticeira Amorim identifies initiatives and actively engages with stakeholders.

Policies related to own workforce

Corticeira Amorim has formalised and implemented a Human Resources Policy that includes principles and commitments in the areas of respect for human and labour rights; working conditions; free employment; eradication of child labour; prohibition of harassment at work; health, hygiene and safety; employment contracts; working time and pay; freedom of association and the right to collective bargaining; the principle of equal treatment and opportunities; diversity, inclusion and non-discrimination; professional fulfilment and development. The Company also monitors the working conditions of its suppliers and under no circumstances will physical or psychological punishment or harassment of any kind or abuse of power be tolerated, with employees' basic rights always being respected. Lastly, it invests in projects that promote education and professional development among workers, as well as others that contribute to a qualified, diverse, inclusive and safe workforce.

Commitment to development for all

Corticeira Amorim's personnel management strategy follows the following guidelines:

• Adopt and assume the principle of freedom of association;
• Promote a physically, socially and psychologically safe and healthy work environment, that constantly seeks to evolve through the adoption of the best techniques and practices in the field;
• Foster implementation of the principles and adoption of the behaviour mentioned in the Code of Business Ethics and Professional Conduct, which should structure the internal relations between employees, as well as their interactions with different stakeholders;
• Implement personnel management practices in recruitment, skills development and remuneration management that foster non-discrimination and guarantee equal opportunities, building work environments in which plurality and difference are a factor for continuous improvement and innovation;
• Adopt practices of leadership by example, which value learning and development, and practices of recognition and compensation based on merit and free from discriminatory judgements.

Commitment to professional achievement and development

Corticeira Amorim strives to provide employees with an empowering and attractive work environment that offers high levels of job satisfaction and fulfilment, paying fair remuneration and ensuring a safe and healthy working environment.

It is also committed to promoting employee motivation, involvement, participation and accountability, namely through training and qualification processes and incentive, recognition and/or compensation systems that take into account performance evaluation.

Furthermore, Corticeira Amorim is committed to fostering the personal and socio-professional development of its employees, encouraging their involvement in improving their own capacities and skills.

Commitment to an adequate salary

Working time and remuneration comply with the international rules on working time established by the International Labour Organization, the legislation in force and the applicable instruments of collective labour regulation, with the one that best protects employees being followed.

The remuneration of the Organisation's employees is fair and in accordance with the instruments of collective labour regulation and applicable legislation and with balanced and healthy people management policies and practices.

Social protection

Corticeira Amorim's employees are covered by the social protection systems in force in the countries where the companies are located and these cover a significant portion of the situations in which there may be a loss of remuneration, namely illness, parenthood and retirement. However, the range of benefits offered by the Company supplements these public systems, especially in cases where such systems may not be as robust. Of particular note are the Company's provision of health insurance, an accident supplement and possible occasional loans to assist in a variety of situations.

Commitment to occupational health and safety protection

Corticeira Amorim has formalised and implemented a policy that includes the protection of Occupational Health and Safety (OHS), which is aligned with the main applicable international frameworks, such as the principles of the 1948 Universal Declaration of Human Rights, the fundamental conventions of the International Labour Organization, the guiding principles of the OECD for multinational companies, the Ten Principles of the United Nations Global Compact and the Charter of Principles of BCSD Portugal. The Company undertakes to:

• Guarantee health and safety conditions in the workplace, regularly checking, in particular, its facilities' compliance with current standards according to the specific associated risks;
• Ensure that its activities do not harm the health and safety of its employees and subcontractors, those involved in operations, neighbouring populations or users of its products;
• Ensure a safe and healthy working environment for employees, subcontractors and those involved in operations, adopting all appropriate measures to prevent risks and accidents at work and ensuring access to drinking water and clean facilities, including lavatories;
• Comply with and respect regulations on the prevention of occupational risks and to provide the necessary means for employees to carry out their professional activities with the appropriate occupational health and safety measures in order to safeguard their lives, health and physical and psychological integrity;
• Have a preventive approach to the health and safety of its employees, providing them with regular training on health and safety in the workplace;
• Give priority to the safety, health and well-being of its employees, ensuring the development of adequate occupational health and safety management systems, through qualified technicians in these areas and in environmental issues.

Randstad's Employer Brand Research 2023

According to Randstad's Employer Brand Research 2023, Corticeira Amorim is among the 20 best companies to work for in Portugal, ranking third in the industry sector. Employer Brand Research is an independent study that provides valuable information to help employers shape their employer branding. In this edition, the 150 largest employers in Portugal were evaluated.

Code of Business Ethics and Professional Conduct and Human Resources Policy available at:

5.1.2.1 CHARACTERISTICS OF THE OWN WORKFORCE

Employment demographics

	Unit of measurement	2023	2022	2021
Workers
Workers	no.	3,704	3,829	3,796
By type of contract
Permanent	%	83.6%	78.6%	78.4%
Fixed term	%	10.1%	12.4%	11.5%
Temporary workers	%	6.3%	8.9%	10.1%
By type of employment
Full time	%	99.6%	99.8%	99.6%
Part-time	%	0.4%	0.2%	0.4%
By gender
Women	%	27.1%	26.5%	24.8%
Men	%	72.9%	73.5%	75.2%
By age
<30	%	18.0%	19.9%	15.7%
30-50	%	50.1%	49.4%	54.9%
>50	%	32.0%	30.7%	29.4%
By professional category
Board members	%	0.6%	0.6%	0.6%
Directors	%	2.7%	2.4%	2.4%
Heads of department	%	3.1%	2.6%	2.6%
Sales staff	%	1.9%	2.0%	2.2%
Management support technicians	%	6.6%	6.8%	6.4%
Team leaders	%	4.5%	2.8%	2.4%
Administrative staff	%	7.1%	6.5%	6.3%
Maintenance, quality and logistics technicians	%	11.3%	10.5%	10.4%
Production operators	%	62.2%	65.8%	66.7%
By geography
Portugal	%	87.7%	87.7%	87.2%
Rest of the world	%	12.3%	12.3%	12.8%

Number of workers concerns the sustainability perimeter.

At the end of 2023, there was a total of 4,958 workers, in all the entities included in the financial perimeter, a decrease of 0.8% compared to 2022 (4,999). The organisational boundaries of the indicators covered in this report have not changed significantly compared to the previous year and correspond to 74.7% of the workforce, according to the consolidated financial statements.

Of the universe of workers represented in this report, the vast majority belong to industrial-based companies. The indicators disclosed in this chapter are therefore influenced by the predominance of production activities and should be understood in perspective.

The commitment to managing people with policies that favour stability and a medium and long-term commitment to the workforce is reflected in the type of employment relationship: 83.6% on permanent employment contracts.

In terms of age, the majority of workers belong to the 30-50 age group (50.1%), followed by the >50 age group (32.0%) and the under 30 age group (18.0%). Although this was not the case in 2023, the percentage of workers under the age of 30 has increased in recent years, stabilising the average employee age and rejuvenating the workforce. Most workers have qualification level 2 and/or 3, with an increase in the average qualification level in recent years.

In 2023, the absenteeism rate fell to 5.9% from 6.4% in 2022, with a reduction in the number of days lost for practically all reasons. Compared to previous years, there was an upward trend in unjustified absences and short-term absences. This trend is associated with greater employee turnover and an increase in the number of people leaving work. This continues to be one of the Company's priority issues for analysis and follow-up.

5.1.2.2 LABOUR RELATIONS AND SOCIAL CLIMATE

Collective bargaining coverage and social dialogue

	Unit of measurement	2023	2022	2021
Freedom of association
Collective bargaining agreements %		93.2 %	94.4 %	93.8 %
Associativism	%	14.6 %	15.8 %	17.0 %

Percentage of employees within the sustainability perimeter

(2023: 3,471; 2022: 3,487; 2021: 3,412).

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

Collective bargaining agreements cover 93.2% of employees and include the regulation of employees' working conditions, which include, among other aspects, working hours, remuneration, access to training and career progression.

Depending on the size of the companies they work for, employees elect representative structures (workers' committees and trade union committees), mandated by them to represent them. In each company there are union delegates or committees, or employees' committees (each one with specific powers and mandates). On average, the BUs' personnel and administrative departments meet twice a year, with these structures, to discuss the Organisation's results and general and transversal issues concerning the management of the Company and its employees, in particular restructuring, changes in working hours, changes in business activity, equality and inclusion, and economic issues.

The workers' representatives are also elected to sit on another advisory body in each company, the Occupational Health and Safety committees, which are responsible for monitoring and advising on the companies' occupational health and safety performance.

Social climate

Corticeira Amorim considers it important to carry out organisational climate surveys as tools for assessing employees' perception in areas and fields of work and the Company that may influence their satisfaction and motivation at work, as well as their well-being, attachment and commitment.

Within this framework, the periodic measurement of these perceptions, in a transversal and periodic manner throughout the Organisation, is a way to monitor and follow the evolution of important indicators, as well as a barometer of cultural evolution. Social climate surveys are carried out every two years, in addition to the definition and implementation of action plans consistent with the results achieved, as well as monitoring of their effectiveness.

Corticeira Amorim uses the survey produced by the National Human Resources Observatory (ONRH), which analyses different dimensions of the social climate: organisational context, workplace, recognition and reward, cooperation and communication, policy and strategy, change and innovation, relations with supervisors and expectations. The results in these different dimensions make it possible to measure employee satisfaction, which in turn is linked to the degree of loyalty that determines the involvement of each employee.

In these surveys, all employees are invited to answer anonymous questionnaires, in line with the best international practices in this field. The data compiled (relating to employee perception) makes it possible to analyse matters and themes that could be improved, enabling analyses both in overall terms and by age range, gender and professional category, with each BU being responsible for defining specific action plans in line with developments.

To calculate the Organisation's overall results, a methodology is used that aggregates the companies' latest results, taking into account the two most recent years, even if the results were achieved in the previous year.

Thus, in 2023, the response rate to the questionnaire was 75.5% and the level of satisfaction of Corticeira Amorim's professionals was 60.9 points (out of 100 points). Areas such as recognition, remuneration and the physical working environment were the lowest scoring and were addressed in the action plans implemented in 2023, namely through the introduction of variable remuneration for all employees, changes to physical working spaces and a global communication campaign to recognise and appreciate employees. Leadership programmes were also continued, involving the Company's different hierarchical levels.

5.1.2.3 ATTRACTING AND RETAINING TALENT

	Unit of measurement	2023	2022	2021
Rate of new hirings and turnover
Number of entries	no.	518	522	410
Number of turnover	no.	515	426	341
Rate of new hirings	%	14.9 %	15.0 %	12.0 %
Turnover rate	%	14.8 %	12.2 %	10.0 %

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

Corticeira Amorim recognises the importance of attracting and retaining talent to ensure its long-term success. To achieve this, it makes a number of commitments to its employees, thereby creating an empowering and attractive working environment.

The rate of new hirings was 14.9% and was higher among female employees and in the under 30 age group. This is the result of measures to achieve the renewal and rejuvenation objectives, as well as the pursuit of a more gender-diverse workforce. There was an increase in the turnover rate to 14.8% of employees, with a higher incidence in the under 30 age group. This may also be due to the labour market becoming more accessible and the resulting increase in opportunities.

Attracting and retaining talent is one of the priority action areas, especially as regards recruiting young people. The Company has always favoured long-term relationships and commitments when it comes to its employees. Recruitment often involves the Company's trainee programmes, with continuous investments made in training these employees and developing their skills. In a climate in which it is generally more difficult to attract and retain talent, the Company has responded with a series of initiatives aimed at ensuring it can still attract and retain a range of skill sets. The most important initiatives during the year included:

• Employer branding: Corticeira Amorim stepped up its institutional presence at various Job Fairs and Career Days, in conjunction with the respective educational institutions;
• Curricular and professional internship programmes: resulting from collaborations and protocols with universities and higher education institutions, which continue to be vital sources of recruitment. Each of Corticeira Amorim's companies has internship programmes for young people at the start of their careers. In particular, the Cork Potential and Cork Talent programmes have provided a wealth of skills and qualifications which, in the medium term, will underpin the workforce of the Organisation's companies;
• Internal mobility: the Mobility+ programme is aimed at internal recruitment and is both a way of attracting and retaining talent. By making internal job vacancies available, this programme aims to contribute to integrated people management, promoting new challenges and career development opportunities;
• Retraining and upgrading skills: with a special focus on the professional categories of industrial operations maintenance and support, these initiatives are aimed at upgrading the skills needed in order to keep up with technological developments;
• Onboarding and integration: the On Cork Programme and the Young @ Cork Programme stand out in this area, being aimed at enabling better integration through training/sharing sessions and visits to the Company's various BUs.

On Cork programme

This onboarding programme takes place twice a year and brings together those hired during the semester. This is a joint day for newly hired employees in management and support roles who, over the course of four days, attend workshops on the business, corporate culture and cork as a raw material, visiting all of Corticeira Amorim's units and having the opportunity to interact with and question the Executive Committee. The new employees thus have the opportunity to get to know all of the Company's businesses in an integrated and diversified way and to explore different perspectives on its organisational culture. The first edition of the programme took place in 2023, with 52 employees taking part, who each completed 36 hours of training. On Cork is one of the initiatives of Young @ Cork, a Corticeira Amorim programme aimed at young employees.

Young @ Cork programme

In 2023, the Young@Amorim programme was launched, with the aim of developing four main areas of activity among Corticeira Amorim's young staff (under 30):

• • Ensuring a quality induction, providing a complete and integrated view of the Company's business and multiple contexts, promoting knowledge and developing a solid corporate culture;
• • Stimulating creativity and the development of skills linked to innovation and entrepreneurship;
• • Bringing together and encouraging direct and open communication between younger employees and senior management (Executive Committee and management from the various BUs), encouraging expectations, questions and suggestions to be shared;
• • Developing a transversal mentoring programme that allows younger people to feel guided and supported in their career development.

This programme was launched in 2023 at the WE ARE ON! event, which was attended by around 200 young people from the different companies that make up Corticeira Amorim.

5.1.2.4 EQUALITY AND RESPECT FOR DIVERSITY, INCLUSION AND NON-DISCRIMINATION

Equal treatment and opportunities for employees is a basic principle of Human Resources policies. This principle is applied to hiring, training, career opportunities, salary levels, as well as other aspects of the work relationship, within the framework of an internal culture of equity, excellence, responsibility and profitability.

During the year, commitments to equality, diversity and the promotion of anti-harassment measures were reinforced. The Code of Business Ethics and Professional Conduct and the formalisation of Corticeira Amorim's policies, specifically the Human Rights Policy and the Human Resources Policy, strengthens the Company's commitment to principles and practices that foster non-discrimination and the creation of inclusive, balanced and fair working environments.

The Equality Plan for companies in Portugal was also renewed and formally extended to include the dimensions of diversity and inclusion, while maintaining the targets that aim for zero discrimination by 2030 - the objective of one third of women in the total number of workers and an equal percentage in management positions in companies in Portugal. As part of the Equality Plan, there were themed campaigns on Diversity, Equity and Inclusion (DEI) issues, namely the #Abraçaraequidade# (Embrace Equity) campaign on International Women's Day and DEI week in November.

In Portugal, Corticeira Amorim responded to the gender surveys and audits carried out by the official bodies mandated for this purpose: the Commission for Equality in Labour and Employment (CITE) and the Authority for Working Conditions. The surveys and audits carried out are designed to assess the representation of women in the various positions and any pay discrepancies. These information reports and audits have made it possible to verify the degree to which the Equality Plans have been implemented in different areas and have also contributed to change and improvement.

Corticeira Amorim has an internal reporting procedure, used to report incidents, that aims to prevent and detect improper and/or illicit behaviour within the framework of professional activity, and protecting those who, in good faith and with legitimate motives, report them, as well as the people and entities related to them. In 2023, four incidents of discrimination and harassment were reported. Additional information in Chapter 6. Governance information/6.1 Business conduct/6.1.2 Metrics and targets/6.1.2.1 Corporate culture and business conduct policies/ Reporting of irregularities.

Commitment not to tolerate any kind of discrimination or harassment

Harassment in the workplace is expressly prohibited.

The Organisation and its employees reject and do not tolerate any kind of harassment, discrimination, coercion, abuse, violence or exploitation at work, within their sphere of influence.

Workplace harassment is any behaviour, namely based on a discriminatory factor or of a sexual nature, with the purpose or effect of disturbing or embarrassing a person, affecting his/her dignity, or creating an intimidating, degrading, humiliating or destabilising environment.

Employees have a duty to report inappropriate behaviour that indicates harassment at work, with a view to clarifying the situation and initiating disciplinary inquiries. Specifically, anyone who suffers or has knowledge of the practice of harassment in the workplace must report the situation to the Human Resources Department or to their superior or use the Procedure for Reporting Irregularities available on Corticeira Amorim's website.

Employees are also expected to support victims of harassment, either by showing verbal disapproval of the harassing behaviour or by not associating with others who attempt to mock/ridicule the victim. In this way, everyone must contribute, when necessary, to an inspiring and pleasant environment, and not allow any form of harassment.

The Organisation affords full legal protection to employees in the event they suffer or report workplace harassment.

In this respect, members of the governing bodies and holders of management and leadership positions are bound by a special duty of care to consider the possible effects of their behaviour, even if unintentional.

Human Rights Policy, Human Resources Policy and Monitoring Report on Respect for Human Rights available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

Diversity and inclusion metrics

	Unit of measurement	2023	2022	2021
Women workers	%	27.1 %	26.5 %	24.8 %
Women in management positions	%	23.4 %	25.5 %	24.6 %

People with declared disabilities >60%

	Unit of measurement	Women	Men	Total
Employees with a declared disability no.		11	23	34
Employees with a declared disability %		1.2 %	0.9 %	1.0 %

More detailed information in Chapter 8. Consolidated sustainability indicators/ 8.3 Social.

The objectives set three years ago in Portugal regarding female (the under-represented gender) representation have been achieved. The reversal recorded in 2023 with regard to women in management positions is the result of some cyclical aspects, namely the departure of women from some positions that have not been replaced and internal professional reclassification that has changed the mix of professional categories covered by the managerial position classification.

Corticeira Amorim reaffirms its commitment to building an inclusive and diverse working environment, in which women have equal opportunities for career advancement. To this end, it is strengthening its measures to promote gender equality, with the aim of addressing the recent trend reversal and achieving its long-term goals. Some of the measures being implemented include:

• Renewing the Equality Plan with a new scope extended to the dimensions of diversity and inclusion;
• Enhancing training on topics such as diversity, equity and inclusion for all employees, with a focus on raising awareness about unconscious biases and promoting inclusive behaviour;
• Regular follow-up meetings with Company leaders to monitor the progress of diversity and inclusion initiatives and identify opportunities for improvement;
• Reviewing recruitment and selection policies to ensure that there are no barriers to women joining the Company;
• Promoting diversity weeks and celebrating international anniversaries that contribute to general awareness;
• Clearly defining the objective of hiring women for positions where they are under-represented, without compromising skills and merit.

Corticeira Amorim is confident that these measures will make it possible to achieve the objectives and build a more diverse and inclusive team.

Embrace Equity

Under the slogan "Together we want to embrace equity", Corticeira Amorim marked International Women's Day with a communication campaign highlighting some of the achievements already made and some of the progress still needed in its companies as far as gender equality is concerned. Organised through the Company's various media and promoted in all BUs, the campaign saw the participation of several employees, who literally embraced equality in large format photographs. At the same time, Corticeira Amorim invited each of its employees to recognise, distinguish and encourage someone by giving them a card with a message about progress, improvement and growth.

In 2023, the Equality Plan, applied to companies in Portugal, was extended to the dimensions of diversity and inclusion, with actions planned in the areas of training, events to promote inclusion and the creation of partnerships.

Corticeira Amorim believes that inclusion is an ongoing journey and is committed to creating a working environment where everyone feels valued and committed, as well as a sense of belonging.

Partnerships and protocols were established with associations working to integrate people with disabilities into the labour market, such as CRPG (Gaia Professional Rehabilitation Centre), while the Company also participated in inclusive recruitment events. Corticeira Amorim's Human Resources teams were also involved in a training programme on the subject.

Programme for equality, diversity and inclusion

The scope of Corticeira Amorim's Plan for Equality was extended to the dimensions of diversity and inclusion and is leveraged on six fundamental axes:

• • Internal and external commitment to issues of gender balance, definition of objectives, targets, action plans and respective monitoring;
• • Awareness-raising, involvement and training of all employees on Gender Equality issues;
• • Increase the representation of women amongst all employees;
• • Evolution in ratios regarding the inclusion of people with disabilities;
• • Create more equal and inclusive contexts and working conditions;
• • Promote in a systematic, structured and appropriate manner, cascaded and extended debate in the Organisation on diverse and inclusive contexts, based on quantitative and qualitative indicators, in the dimensions of representativeness, equity and culture.

Intervention was materialised through a set of annual and pluri-annual initiatives, that focused not only on previously established objectives for gender equality, but also objectives related to the hiring of young people, as well as intervention in workplaces, with a view to creating infrastructures that cater to workers with special needs.

Corticeira Amorim's Programme for Equality, Diversity and Inclusion is available at:

Diversity in the governing bodies

	Unit of measurement	2023	2022	2021
Women on the Board of Directors of Corticeira Amorim	%	40.0 %	40.0 %	40.0 %

With regard to the governing bodies of Corticeira Amorim, a policy of diversity is advocated in their composition, in particular for the Board of Directors and the Audit Committee, as a means to:

• Promote diversity in the composition of the respective body;
• Enhance the performance of each body and each individual member of those bodies;
• Encourage wide-ranging, balanced and innovative analyses with a view to facilitating well-founded and agile decision-making and control processes;
• Contribute to increased innovation and to the self-renewal of the Company, together with its sustained development and the creation of long-term value for its shareholders and other stakeholders.

Corticeira Amorim recognises the need to continuously promote diversity in its governing bodies, in particular in the Board of Directors and the Audit Committee. 40.0% of the members of the Board of Directors are currently women.

5.1.2.5 TRAINING AND DEVELOPMENT

Corticeira Amorim is committed to valuing its employees through training and development, thereby contributing to the success of its strategy.

Therefore, it provides all its workers with access to relevant and quality training, promoting learning opportunities and improving not only technical skills, but also management and behavioural skills.

Training and skills development metrics

	Unit of measurement	2023	2022	2021
Training
Training hours	h	79,281	74,792	67,094
Average hours of training	h	21.4	19.5	17.67
Workers with training	%	81.7 %	84.9 %	79.2 %

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

In 2023, the number of training hours (h) rose to 79,281, equivalent to a 6.0% growth in training volume. The average number of hours of training also rose to 21.4 per worker. The professional categories with the highest average number of training hours maintained the tradition established in previous years: heads of department (55h), team leaders (33h), sales staff (38h) and management support technicians (37h). The majority of the training hours correspond to technical training, a significant part of which takes place on the job but also in the classroom. There is also management training in leadership skills and managing people, teams and projects. The e-learning format is beginning to take hold, with triple the number of hours in this type of training compared to the previous year.

Training was provided to 81.7% of the Company's staff. The reversal of the positive trend seen since 2021 illustrates the challenges that exist in the area of training, particularly regarding the professional and personal development of all employees, bearing in mind the diverse profiles and needs within the Company. The challenge is to find training formats that are accessible to everyone, regardless of skills, learning styles or availability. The Company's commitments in this area remain unchanged, particularly as regards ensuring that 95% of the workforce in Portugal receives annual training by the end of 2024 and 100% by 2030.

In 2023, a number of training programmes started in 2021 were further consolidated. Highlights include:

• Medium-term programmes in the areas of leadership (Lead Up and Executive Coaching for Leaders), customer focus (Think Customer) and professional development (Knowledge For Growth, in partnership with the Católica Porto Business School);
• Talent programmes with an expected duration of three years aimed at high-potential employees that the Company wants to develop in a more intensive and targeted way (Cork Up);
• E‑learning programmes as a distinctive development methodology. The availability of a specific platform, with more than 200 courses in English and Portuguese, permitted access to content related to management, behavioural area, micro‑computing and languages. This platform aims to use digital tools in order to cover a wide range of employees and, at the same time, permits easy and flexible access to training content; • Succession plans that consider developing employees for planned internal mobility.

Leadership development programmes

Corticeira Amorim has leadership programmes designed to boost quality and ensure this has a direct impact on the Organisation's results and performance. Designed to develop, with a view to continuous improvement, the transversal principles of leadership, always respecting the individuality of each person and the various leadership styles, attending to the different organisational levels and the various functional areas, preparing leaders for the future, always taking into account the multiple internal realities, including remote team management, multiculturalism and generational diversity. The Lead Up, Executive Coaching for Leaders, and Knowledge For Growth programmes are just a few examples. Among the objectives, the following stand out:

• • Create a culture of leadership in Corticeira Amorim's companies;
• • Identify the leadership principles that should guide the actions of the Organisation's leaders;
• • Clarify and ensure that each supervisor integrates the behaviours expected of a leader into their daily practice;
• • Transfer knowledge and leadership practices so that leaders are increasingly autonomous and efficient in their role.

In 2023, more than 15,000 hours of training were given to management positions.

Management by objectives, performance assessment and alignment of incentives

	Unit of measurement	2023	2022	2021
Workers with regular performance and	%	86.7 %	57.0 %	54.9 %
career development reviews

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

Corticeira Amorim has implemented a performance management system that encompasses management by objectives, performance assessment and development of skills (professional development plans). It is a management tool with proven track records in promoting individual and organisational performance in companies. It covers all the Organisation's upper and middle management.

The Company is implementing a similarly sized system, specific to operational functions, which covers direct and indirect industrial operators and the administrative workforce.

The general objective includes having all workers in Portugal covered by an integrated system of performance management, in which the component of management by objectives and performance evaluation is added to a system of incentives.

This programme began in 2022 and has achieved results in line with expectations. The global indicator shows that 86.7% of the workforce is covered by this system and in Portugal this has reached 95.0%.

These results demonstrate Corticeira Amorim's commitment to performance management and the development of its employees. The Company believes that this tool is essential for improving individual and organisational performance.

5.1.2.6 HEALTH AND SAFETY METRICS

Corticeira Amorim considers that working conditions are one of the fundamental factors underpinning the success of an organisation. In this context, it promotes and fosters a culture of safety among all workers, guaranteeing a working environment that preserves physical and psychological integrity, while also encouraging a healthy and sustainable lifestyle. Within the framework of occupational health and safety, Corticeira Amorim is governed by the following lines of action:

• Compliance with all requirements, standards and legal procedures in the area of OHS, including training for employees and service providers;
• Implementation of OHS programmes;
• Committees and formal meetings involving employees and/ or their representatives to monitor performance;
• Sharing, debate and adoption of a set of best practices in all BUs.

Ensure the safety, health and well-being

Worker's health is promoted through compliance with all legal requirements, standards and procedures in the area of OHS, in all countries where Corticeira Amorim operates, by applying good practices, in particular:

• Provision of occupational medicine and nursing services, curative medicine and health care in general;
• Regulatory occupational medicine examinations for admission and periodic examinations;
• Screening and training in the field of occupational health;
• Risk and hazard assessments to identify what may cause incidents or accidents in the workplace;
• Prioritisation and integration of action plans with quantified targets for dealing with risks;
• Availability of personal protective equipment;
• OHS training for employees and service providers adapted to the specific characteristics of each job;
• OHS committees, with the participation of employees and/ or their representatives;
• Specific procedures for handling hazardous substances;
• Action plans prepared for emergency situations;
• Specific procedures to investigate work-related injuries, ill health, illness and incidents and forums to discuss best practice within the Organisation;
• Internal and external audits, in particular according to ISO 45001 and/or SA 8000 standards;
• More specific programmes, such as workplace exercise, aimed at preventing musculoskeletal injuries;
• Objectives and performance indicators to assess progress.

Each company has an Occupational Health and Safety Committee, made up of worker representatives, safety technicians and management representatives, which does the following:

• Request and assess suggestions from workers on health and safety issues;
• Visit workplaces to recognise health and safety risks and evaluate the preventive measures adopted;
• Propose initiatives within the framework of risk prevention for occupational health and safety, with a view to improving working conditions and correcting any shortcomings detected;
• Participate in the definition of measures to be included in the prevention plan;
• Analyse the available data on workplace accidents and occupational illnesses;
• Participate in the development of the department's annual OSH programme and follow up on it.

Additionally, indicators are monitored, more specific programmes are developed and multiple screenings and training actions are carried out.

Human Resources Policy available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/ UN Global Compact:

https://unglobalcompact.org/what-is-gc/ participants/149253-Corticeira-Amorim-S-G-P-S-S-A-Charter of Principles of the BCSD Portugal: https://bcsdportugal.org/wp-content/uploads/2022/11/ Charter-of-Principles\_BCSDPortugal\_ENG.pdf

Risk assessment and investigation of incidents

The hazard identification and risk assessment procedures apply to all tasks and processes carried out in the Company that involve an OHS risk. These include routine, occasional and emergency activities conducted by permanent employees, temporary workers or service providers on Company premises.

The OHS departments are responsible for ensuring identification of hazards, assessing the risk and proposing/validating corrective, preventive or improvement measures.

Workers are involved and consulted, through seeking their point of view, within the framework of hazard identification and risk assessment, as well as the definition of control measures. Whenever there are substantial changes in the hazards that could alter the risk, the risk is reassessed. All the incidents that occur in the Company are analysed by a multidisciplinary team, which includes members of the OHS team, the person(s) in charge of the area in which the incident occurred and the support areas that may be relevant in analysing the occurrence, as well as the employees of the area, with a view to identifying the root cause of the incident and defining actions to eliminate or control the risk. The results of the incident analysis are disseminated within the Company.

Certifications/audits/verifications

	Production units
ISO 45001	14.3 %
SA 8000*	28.6 %
Internal SRMS	57.1 %
Total	100 %

* Not included in ISO 45001.

Includes 28 PUs of the sustainability perimeter.

Corticeira Amorim's companies have an IMS, which includes Social Responsibility Management Systems (SRMS). Due to the different characteristics of the various companies and activities, each implement the model that best suits the associated non-financial risks or the opportunities emerging in the markets in which they operate, which justifies the diversity of external certifications. The management systems are audited internally and externally, in accordance with the schedule defined for each system. In addition, an annual audit to verify compliance is also carried out. All the systems have underlying policies and objectives for improving OHS performance, which are supported by an activity plan and there are evaluation mechanisms and indicators defined for each one. They are also available in several languages.

External certification of management systems is increasingly becoming a priority. Certification according to international standards of safety and health at work/social responsibility, such as ISO 45001 and SA 8000, is implemented in 42.9% of PUs.

Work-related injury or ill health

	Unit of measurement	2023	2022	2021
Recordable work-related injuries	no.	60	91	76
High-consequence work-related injuries	no.	4	7	2
Fatalities	no.	0	0	0
Work-related ill health	no.	42	73	65
Lost time injury frequency rate		9.5	14.3	12.4
Rate of high-consequence work-related injuries		0.6	1.1	0.3
Lost workday rate		307.1	783.9	553.6
Rate of fatalities as a result of work-related injury		0.0	0.0	0.0
Rate of work-related ill health		6.6	11.5	10.6

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

Corticeira Amorim has given new impetus to Occupational Health and Safety in 2023, with measures that demonstrate its commitment to its workers' health and safety. Noteworthy in this respect are the action plans implemented at the different BUs, which resulted in a significant reduction in the number of accidents throughout the year:

• Creation of a transversal role aimed at creating a global alignment programme and boosting all initiatives linked to this area;
• Launch of the structural safety development programme with a survey of all companies to determine what stage the safety culture is at and, on the basis of this assessment, to define areas for general and specific development for each company;
• Development of a safety training programme for all the Organisation's managers, which will start in early 2024, and which will also form part of a plan for cross audits for safety and various company-specific initiatives (Safety Dialogues, Safety Walks, Themed Weeks);
• Organisation of the OHS forum with the participation of Health and Safety representatives, Human Resources directors, general managers, and industrial and operations directors from all BUs, led by the Chairman of Corticeira Amorim. This dynamic has allowed for constant sharing and debate on best practices in this area, fostering significant progress and the transversal adoption of a set of practices.

Highlight on the issue of occupational health, with initiatives to improve the ergonomics of a number of workstations and to continue with workplace gymnastics and physiotherapy programmes, which are fundamental to reducing the incidence of work-related musculoskeletal disorders. In addition, and following an internal communication campaign, the topic of mental health in the workplace was addressed.

The main results for 2023 include a significant reduction in the lost time injury frequency rate, the rate of high‑consequence work‑related injuries, the lost workday rate and the rate of work‑related ill health.

WE'RE ON! New Generations marks a new era for Amorim's young workers. The event was attended by around 200 young people from the different companies that make up Corticeira Amorim.

OHS training

Within the framework of OHS, special importance is given to training when welcoming new employees, as well as OHS training in the workplace, which is compulsory whenever an employee starts working in a new workplace. The content of OHS training is regularly revised in order to ensure that knowledge is updated and that there is the necessary awareness of occupational health and safety issues. Increasingly, priority is given to the development of on-the-job OHS training rather than classroom training, always with the objective of customising the training and, in this way, improving the transmission of safety knowledge to employees. During 2023, more than 14,419 hours of training were provided in this field.

Workplace gymnastics project

After rolling out workplace gymnastics programmes in the Amorim Florestal and Amorim Cork Composites BUs, similar programmes were implemented in the other BUs in 2023. The main objectives of these programmes are to prevent work-related injuries and improve posture. They also make it possible to reduce absenteeism, improve employees' perception of the Company, improve attention and concentration, and promote physical activity and a healthy lifestyle. Implementation of the workplace gymnastics programmes begins with an ergonomic analysis of each employee's workstation and physical condition. This is followed by initial training for in-house facilitators, focusing on the most common work-related musculoskeletal disorders (WMSDs), risky postural behaviour, a preventive framework for exercise in the workplace, tools to guide workplace gymnastics sessions, exercises and their basics, teaching strategies and training on the exercise plan. It also includes the development of improvement proposals both at the ergonomic level of the workplace and at the level of task standardisation, individual postural training for the development of work tasks with less risk of musculoskeletal injury, implementation of physical activity programmes and also active recovery programmes aimed at the treatment of specific pathologies. It is then up to the internal facilitators to organise the workplace gymnastics for their teams at the start of each shift.

5.1.2.7 WORK-LIFE BALANCE

Corticeira Amorim's employees benefit from several advantages, in particular the purchase of products and services (our own and those resulting from partnerships and protocols), salary bonuses and support that encourage conciliation between personal and family life and work, in particular:

• Benefits in health services: hospitalisation insurance is provided in all companies in Portugal; in the larger units (or head offices), curative medicine appointments are organised twice a week; there are protocols with clinical analysis laboratories, which carry out collections in the companies, and with pharmacies that accept orders and deliver medication to the premises. Several screenings (ophthalmologic, hypertension, healthy habits) are conducted regularly in order to promote health. Each year, a flu vaccination campaign is carried out;
• Recognition and celebration benefits and initiatives throughout the year: Christmas hampers, birthday gifts, seniority awards and various recognition awards;
• Online platform for access to hundreds of products (clothing, footwear, electrical appliances, telecommunications equipment) and services (insurance, travel, gyms, health and beauty care, among others) called Amorim Vantagens+, available to all employees in Portugal;
• Daily life assistance benefits: access to the Company's canteens by the employees' direct family members, wherein employees can also purchase meals to take home;
• Protection of parenthood: information on legislation on parenthood, support for the education of employees and their children, offer of toys for employees' children.

Parental leave

Maternity/paternity leave	Unit of measurement	Women	Men	Total
Return-to-work rate	%	100 %	97.9 %	98.4 %
Retention rate	%	75.0 %	94.7 %	90.8 %

All Corticeira Amorim employees in Portugal are entitled to family leave, which is guaranteed by the legislation in force.

In order to guarantee the right of workers to take parental leave, Corticeira Amorim has created and keeps updated a chapter in its internal network - Linkpeople - on the legislation on parenthood, which provides for 120 days of leave paid at 100% or 150 days paid at 80% for mothers, and 20 working days paid at 100% for fathers.

In addition, employees benefit from various services and support, including support for their children's education, with the award of school grants and merit-based scholarships (currently more than 30 young people a year), as well as donations of toys.

5.1.2.8 COMPENSATION METRICS

	Unit of measurement	2023	2022	2021
Ratio of salary of women to men	no.	0.99	0.98	0.96
Ratio of remuneration of women	no.	0.89	0.88	0.88
Gender pay gap	%	10.9 %	12.0 %	12.1 %

More detailed information in Chapter 8. Consolidated sustainability indicators/8.3 Social.

Corticeira Amorim recommends that the principle of equal treatment and opportunities should be applied, among other things, to career opportunities and salary levels. There has been a positive trend over the last three years as regards the fixed salary gap between male and female employees, which has narrowed. The same applies to the remuneration gap (all salary components).

Despite this generally positive trend, a detailed analysis by functional group still reveals unfavourable trends due to a different level of recruitment by group, the inclusion of different profiles in the same functional area and the fact that the groups include a group of employees from different countries, with different average salary levels. These groups are also not homogeneous in the composition of the roles/genders represented, which could lead to some bias.

Corticeira Amorim has planned a set of procedures in order to collect information and apply possible corrective measures. Therefore, as well as regularly monitoring the pay/wage ratio between women and men by professional category, detailed analyses will be carried out, specifically job analyses and salary comparisons. The Company also plans to introduce, in the corporate climate surveys, questions on satisfaction with regard to equality aspects and suggestions for actions to be taken in this area, as well as to maintain the training actions for managers, aimed at identifying and preventing gender biases in Human Resources management processes (performance evaluation, professional and salary evolution).

5.2 COMMUNITY/SOCIETY AND INNOVATION (SDGs 8, 9, 17)

5.2.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

For over 150 years, Corticeira Amorim has been dedicated to positively impacting society and promoting harmony through active and sustainable participation.

Corticeira Amorim identifies communities as a key stakeholder group, recognising that community views, interests and rights, including Human Rights (and the rights of indigenous peoples) are essential to its strategy and business model.

Firstly, when defining its strategy and business model, the Company integrates the views, interests and rights of the communities impacted by its activities. To this end, it holds regular consultations with its stakeholders, including communities, to understand their needs and concerns. Secondly, as part of its strategy and business model, the Company takes into account the actual and potential impacts on communities resulting from its activities, through a regular assessment of the related material impacts, risks and opportunities.

Positive impacts include providing jobs, significant investments, contributions and taxes, and business partnerships. Simultaneously, several significant complementary impacts on the economy and society stand out, which emphasise the Company's importance in promoting entrepreneurship, environmental sustainability and innovation. In particular, its activities have an important impact on other companies and sectors, at a national level, upstream. Among the main contributions are the Company's role as:

• A benchmark for the Portuguese cork cluster and one of the best examples of how to economically develop a natural resource, combining best practices to maximise profitability with environmental and social responsibility;
• A promoter of cork and the perception of the material as natural and inimitable, high quality and sustainable, with a prosperous and viable future ahead;
• A leader in the implementation of circular economy principles in the cork industry.

Corticeira Amorim's commitments to communities, expressed in its Community/Society Policy, include compliance with the law, respect for local communities, innovation, minimising negative impact, giving back to the community, being sensitive to the needs and concerns of local communities and promoting environmental awareness actions.

Corticeira Amorim considers possible conflicts with impacted communities and legal sanctions to be potential risks associated with its activity, insofar as they may affect its reputation. On the other hand, contributing towards building resilient communities and accessing new markets can be opportunities, as they tend to improve the Company's reputation and induce growth and innovation.

To this end, Corticeira Amorim reinvests part of its profits in the countries where it operates. Management structures have the necessary tools and processes in place to recognise and manage impacts and understand the needs and interests of communities, as well as identify long-term investment opportunities in those communities. Programmes generating positive long-term benefits are prioritised, in particular:

• Promote social balance, in particular well-being, respect for Human Rights and social inclusion of the people and local communities where Corticeira Amorim is present;
• Support culture and knowledge in favour of promoting the values of Biodiversity and Circular Economy and raising awareness of the impacts of Climate Change and the importance of caring for the planet;
• Strengthen entrepreneurship, creativity and innovation by providing the dissemination of knowledge and innovation in the cork sector to society.

Economic, environmental and social impacts

A study conducted by EY on the environmental, economic and social impacts of Corticeira Amorim's operations in Portugal accounted for the value created and sustained in 2018.

Adopting an input-output methodology applied to the intersectoral data of the Portuguese economy, the study calculated the direct impacts and estimated the indirect impacts and induced impacts arising from household consumption, generated by Corticeira Amorim's operations. For environmental impacts, the following metrics were used: GHG emissions, water consumption, waste production, forest carbon sink. For the economic and social impacts, Corticeira Amorim's gross value added for its operations in Portugal was used.

The results show the relevant contribution of Corticeira Amorim, through the creation of value, the creation of employment and opportunities, product innovation and diversification and support for the promotion of responsible management of cork oak forests and use of natural resources. In numbers:

• • 7× direct value of the activity in Portugal multiplier (includes impacts of cork oak forest's ecosystem services) (the total net value added when the environmental, social and cork oak forest ecosystem service impacts made viable are incorporated is 7x greater than the direct value added);
• • 2.17× production multiplier in Portuguese economy (each euro of Corticeira Amorim's production generates, in total, 2.17 euros in national production);
• • 93% exports to over 100 countries;
• • 75% of the purchases made by the Portuguese subsidiaries are from Portuguese suppliers;
• • 39% contribution to total exports;
• • 51% of impact on employment in the forestry sector in Coruche and Ponte de Sor.

The study showed that the total impacts of Corticeira Amorim's activity exceed what is shown in the financial statements.

The Company has several examples of projects that enhance its effects in terms of innovation, entrepreneurship and the environment, and which have very important indirect impacts on the Portuguese economy and society.

Community/Society Policy available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

5.2.2 METRICS AND TARGETS

5.2.2.1 SOCIAL BALANCE

	Unit of measurement	2023	2022	2021
Direct economic value generated and distributed
Economic value generated	K€	996,009	1,034,630	842,171
Operating costs	K€	641,620	690,303	548,884
Employees	K€	189,732	182,950	146,098
Capital providers	K€	52,848	46,715	39,580
State	K€	33,283	23,581	19,729
Communities	K€	598	361	225
Retained economic value	K€	77,927	90,720	87,656

Corticeira Amorim plays an important role in building resilient communities with the fundamental objective of being an agent of change and value creation. Direct impacts include salaries paid to employees, investments in the community and payments to the State in the form of taxes, contributions and fees, which may be reinvested in social and economic programmes that benefit the communities and regions where Corticeira Amorim operates.

In 2023, Corticeira Amorim generated economic value of 996 million euros, with 92.2% distributed to its stakeholders (2022: 91.2%).

5.2.2.2 CULTURE AND KNOWLEDGE

In 2023, Corticeira Amorim launched a number of initiatives, placing the team's know-how and technical expertise at society's disposal in its most diverse forms, encouraging knowledge of the material and enabling the development of educational, research and artistic projects, aimed at employees and their families, as well as the wider community.

Through multiple actions and partnerships in the area of education and culture, ranging from student internships to protocols with academic institutions, from environmental education to cultural patronage, a significant positive impact is generated in Corticeira Amorim's priority areas in terms of sustainable development.

Promote scientific and technological knowledge

Corticeira Amorim supported various projects in 2023 with the aim of raising the profile of cork as an exceptional natural raw material and strengthening the Company's position as a leader in the industry and sector. These projects are aligned with three of Corticeira Amorim's strategic objectives for sustainability: 1) cork oak forests, by preserving cork oak forests and their ecosystem services through increased knowledge; 2) green products, by maintaining a proactive role in developing new applications for cork; 3) innovation, by supporting research, development and innovation, and fostering sustainable solutions.

• The Amorim Academy, an international organisation created by Corticeira Amorim with the aim of encouraging research in oenology, knowledge about wine, and innovation in viticulture practices, organised the 30th edition of the Grand Prix Sciences & Recherche, honouring Antonin Douillet, an agronomist with a doctorate in Agronomic Sciences, for his "Multi-year study of the airborne spore of Plasmopara viticola by molecular quantification: a new risk indicator for epidemics of grapevine downy mildew". The Amorim Academy is a pool of talents and personalities linked to the vine and wine industry and a permanent source of shared knowledge;
• Corticeira Amorim's association with the School 42, as a corporate partner: launched in Paris in 2013, 42 has more than 15,000 students in 25 countries and is recognised as one of the best programming schools in the world. In 2022, it also began operating in Porto. Based on a method that promotes learning without the traditional classroom format, without teachers and without timetables, at 42 Porto students learn in a practical manner, developing projects among peers. In addition to technical skills, each student enhances their communication skills, teamwork and problem solving, as well as their creativity, autonomy and resilience. The teaching is free, thanks to support from sponsors such as Corticeira Amorim;

• Álvaro Siza Vieira, 90 Years: Corticeira Amorim supported initiatives to mark the 90th birthday of this remarkable

Portuguese architect, whose thinking and practice contributed greatly to the construction of modern Portugal. The documentary SIZA, directed by Augusto Custódio and promoted by the streaming platform Gallery and the Casa da Arquitectura, and the SIZA 90 Years edition, a collection of testimonies about the architect's life and work, organised by António Choupina, provide the specialised and non-specialised public alike with real lessons about this major figure in world architecture;

• PlantBiology 2023: support for the 18th edition of the Iberian Congress on Biology and Plants, organised by the University of Minho, which brought together more than 400 participants in Braga to debate "The Sustainability of the Future";
• Corticeira Amorim funds six scholarships in the area of Forest Engineering. These scholarships provide 100% of the tuition fees for BSc degrees in the above area at the University of Trás-os-Montes and Alto Douro and the University of Porto (UTAD and UP), the Higher Institute of Agronomy (ISA) and the Coimbra Higher Agrarian School (ESAC). The Company thereby intends to stimulate the interest of potential students in an area of strategic importance for Portugal, increasing the availability of specialists in the forestry area to meet the growing demand from the job market.

As part of the i.cork factory's activities, knowledge of cork and experimentation with it by students in areas such as design, architecture and engineering are also encouraged. Every year, workshops, classes and visits are organised, materials are provided and ambitious research projects are monitored, with the following being highlighted in 2023:

• The Thick Skin: Cork as Material for Designing New Futures: Corticeira Amorim and the Parsons School of Design, one of the most prestigious design schools in the world, have signed a collaboration agreement that will allow students at the New York university to learn more about the benefits, qualities and characteristics of cork as a material for the conception and development of their creative proposals in the fields of industrial design, architecture, arts, interior design and similar activities. The focus is on research, testing, investigation, experimentation and hands-on making with the aim of discovering new functionalities and applications for the material, in the hope that disruptive solutions and products will emerge whose design can respond, in a sustainable manner, to the major challenges facing our societies. The course's first initiative was led by Daniel Michalik, designer and assistant professor of product and industrial design, and included a week of experimentation and product development at the i.cork factory;
• Explorations in Cork: responding to a challenge from Dana D'Amico, professor at the Pratt Institute, the i.cork factory collaborated in the design and development of an experimental cork studio, aimed at understanding the material and its properties, a fundamental step for innovation and design success. Over the course of a semester, Pratt students developed experimental projects with cork, a naturally sustainable material, understanding how it is produced, extracted and used today. As a result, the teacher and students got the opportunity to spend a week getting to know Corticeira Amorim and learning more about the new production technologies available at the i.cork factory. The course resulted in a series of insights into cork's unique opportunities, as well as proposals for applications and products in various sectors, including furniture and storage systems.

Environmental education and action

Corticeira Amorim's environmental education programme aims to support educational institutions and raise community awareness of the importance of the forest in general, the cork oak forest specifically, and cork recycling. This programme is aligned with three of the Company's strategic objectives for sustainability: 1) cork oak forests, through the preservation of such forests and their ecosystem services, achieved by increasing knowledge; 2) circular economy, through the promotion of cork recycling and the application of circular economy principles; 3) community/society, through the sustainable and inclusive boost to economic growth, with a focus on community well-being. In 2023, the promotion of personal balance is also worth mentioning. The following initiatives stand out:

• "No Poupar Está o Ganho" (A Penny Saved is a Penny Earned), a financial education project promoted by the Dr António Cupertino de Miranda Foundation, which provides pre-school, primary, secondary and vocational school students with financial education knowledge so that they can acquire the skills to make correct, conscious and informed decisions in the future, helping them to become more responsible consumers. In 2023, more than 18,000 students took part in the 13th edition of this project;
• Annual planting in 2023, carried out by Corticeira Amorim volunteers. In the 2023 edition, around 125 volunteers gathered at Herdade da Baliza, in Castelo Branco, to plant 2,500 cork oaks. The initiative was conducted in close partnership with Quercus, as part of Green Cork, a programme promoted by the Portuguese environmental association, which promotes the recycling of cork stoppers and the planting of autochthonous trees. Corticeira Amorim employees have been involved in this activity since 2011 and to date they have contributed to the planting of 27,000 native trees in Portugal, helping to create more biodiverse and resilient forests;
• Aldeias Suber Protegidas (Suber-Protected Villages), an innovative initiative developed by Quercus and supported by Corticeira Amorim, whose main objective is to improve the resilience of forest areas and increase safety and quality of life in villages located in areas at high risk of rural or forest fires. The pilot project was launched in Unhais da Serra and was a hugely significant moment, not only due to the symbolic planting and sowing of 500 cork oaks, but also the involvement of the local community, including 30 volunteers from the Escola EB 2/3 de Paul school. This pilot project, in an area previously devastated by a major fire in 2018, is the start of a wider journey to protect these villages and the natural environment that surrounds them;
• Amorim em Movimento (Amorim in Movement), an open invitation to families to join Corticeira Amorim on a journey of well-being, reminding them of the importance of self-care. To mark World Mental Health Day, the importance of promoting balance and happiness was emphasised. The registration fee was donated to the Encontrar+se Association, which promotes mental health and access to the best practices in mental health treatment. For every euro donated by participants and their families to the association, Corticeira Amorim donated double;
• Green Cork Schools, a Quercus initiative supported by Missão Continente, Corticeira Amorim and BA Glass, among other partners, which endeavours to involve the school, welfare and scout communities in promoting more conscious and responsible environmental initiatives to preserve and respect nature. The programme aims to promote sustainability and raise awareness about cork as a totally recyclable and reusable material. Collecting cork stoppers helps fund native tree reforestation initiatives that include the cork oak. In 2023, the initiative involved around 425 organisations (social

welfare organisations, schools and scout groups) and 81 thousand students/users and contributed to the collection of approximately 29 tonnes of cork stoppers and the planting of more than 106 thousand trees through the "Floresta Comum" (Common Forest) project.

Art and culture

An ambitious strategy is also being pursued to position cork at an outstanding level worldwide in the fields of architecture and design, promoting its use in the construction of more sustainable and resilient cities. In line with the strategic objectives of green products, community/society and innovation, Corticeira Amorim has embraced a number of initiatives, ranging from experimentation with cork by students from around the world, to its use by major figures in architecture, design and the arts, as well as its presentation on the world's biggest creative stages:

• Sponsorship for the Casa da Arquitectura, contributing to its activities (archive, programming, study and documentation centre and educational service). The Casa da Arquitectura is a non-profit cultural institution whose aim is to promote and publicise architecture in general and the collections it has acquired, namely by holding exhibitions, conferences, workshops, themed visits to places of architectural interest and any leisure, cultural, tourist and social activity that contributes to a better understanding of architectural heritage, both nationally and internationally;
• Spirit of Place, the cork installation conceived by designer Simone Brewster for the London Design Festival 2023, inspired by Portuguese cork oaks and cork oak forests, placed a display of our natural heritage in the centre of London, underlining its characteristics and added value. This initiative highlights the vital role that Corticeira Amorim plays in conserving cork oak forests and helping to revitalise the biodiversity of this ecosystem – one of the world's 36 biodiversity hotspots –, thereby enhancing the raw material's sustainability and technical characteristics. Spirit of Place, built and supported by Corticeira Amorim, emphasised the importance of cork as a unique material available to those who are designing the cities of the future today, prioritising comfort and well-being, safety and inclusion, functionality and sustainability;
• Generation Proxima: Emerging Environmental Practices in Portuguese Architecture, the exhibition at the Center for Architecture in New York, which highlights the approach and strategies of seven environmentally orientated Portuguese studios within the context of climate emergency. Corticeira Amorim's cork plays a vital role in this exhibition, from the construction of models to the design features that line parts of the gallery's walls, emphasising cork as a material with great visual charisma and excellent performance and sustainability;
• Not Post‑Modernism. Dan Graham and 20th Century Architecture, the exhibition at Serralves, conceived by the artist himself, highlights eight architects whose work profoundly influenced Graham. Transformed into a curatorial space by Atelier Bow-Wow, it promotes creative dialogue and a dynamic interaction between ideas and forms. At the centre of this exhibition is the transformative power of Corticeira Amorim cork, a material that transcends mere function to become an integral element in design and sustainability;
• Micro|Macro: cork at Serralves in Ryoji Ikeda's immersive pavilion. At the crossroads of art, science, architecture, technology and experimental music, the installation "Micro | Macro" by Japanese artist Ryoji Ikeda, on show at the Serralves Foundation, explores the relationship between human beings

and nature and the cosmos and is based on the notion of scale. In the temporary pavilion created by Portuguese architect Nuno Brandão Costa and based on Ikeda's concept, cork is once again elevated to the status of a work of art. Due to its tactile nature and its thermal and acoustic performance, cork creates the perfect environment for this experience. The fact that it is a 100% natural, recyclable and renewable material made the choice of cork even more pertinent.

5.2.2.3 INNOVATION AND ENTREPRENEURSHIP

	Unit of measurement	2023	2022	2021
Average investment in R&D+I	K€	11,253	11,075	10,363

Innovation is at the centre of Corticeira Amorim's strategy, encompassing all its BUs. This approach aims to diversify the portfolio, improve the efficiency and quality of processes and promote the circular economy. Currently, the average investment in R&D+I is around 11.3 million euros.

Corticeira Amorim disseminates its knowledge and innovation throughout society both directly (when the Company voluntarily grants access to knowledge and certain innovations) and indirectly, through the generation of positive externalities arising from its business activity, which include innovation projects in partnership with universities and specialised companies, purchasing products from local producers, inducing innovation in support industries, developing new applications for cork, communicating the benefits of cork and disseminating good circular economy practices.

The promotion of entrepreneurship is one impact of Corticeira Amorim's activity, which is generated by direct initiative and has a significant outcome in promoting innovation in the sector, since Corticeira Amorim is the only incubator for cork-related companies, through which innovative ideas and businesses are stimulated and supported. In the same vein, it encourages the creation of companies by former workers, the appearance of new uses for cork and the emergence of companies to support the cork industry.

Each BU has its own RDI centre, with its own competences, and there is also a Company‑wide innovation structure, namely Amorim Cork Research (ACR) and Amorim Cork Ventures (ACV), the latter a business incubator launched in 2014. The Organisation currently supports the business development of two companies through ACV: Ecochic and TDCork. The former has a value proposition focused on the use of more environmentally friendly materials, in which cork‑ ‑based soles play a differentiating role. TDCork is a pioneer in the production of cork‑based rugs. Amorim Cork Composites' activity in this area is completed by its partnerships with specialists in the segment that encompasses play, leisure and recreational surfaces, as well as sports surfaces and toys.

Corticeira Amorim works closely with customers and scientific and industrial partners in these areas. In 2023, the key interactions included:

• Amorim Florestal: R&D+I is paramount and has recently been divided into specialised branches, covering forestry research and industrial innovation. In forestry research, there are three distinct areas: forestry management (induction), applied forestry R&D (intervention) and fundamental forestry R&D (investigation). Of particular note is the FIP, started in 2013, which arose from a realisation of the need to take action in new cork oak plantations to ensure their viability. Amorim

Florestal works closely with partners and stakeholders in its R&D+I projects, which include forestry producers, customers and academia. More information on the FIP can be found in Chapter 4. Environmental information/4.5 Biodiversity and ecosystems/4.5.3 Metrics and targets/4.5.3.1 Forestry Intervention Project;

• Amorim Cork: of particular note is the scientific research conducted, with studies publishing on the interaction between cork stoppers and wine, applying artificial intelligence and deep learning technologies. At product level, Xpür technology was launched in 2021 for micro‑granulated stoppers, with non‑detectable TCA performance14. The Naturity thermal desorption process, launched in 2021, treats natural stoppers prior to NDtech analysis, significantly increasing NDtech's productivity. NDtech technology, launched in 2014, is constantly evolving, and while it boasts the most up‑to‑date equipment, improvements are always being sought, such as a new algorithm that is more effective at detecting TCA. These developments, in partnership with customers, scientific and industrial partners and academia, make it possible to adapt closures to each wine, recognising the oenological role of the stopper in the evolution of the wine itself, and to segment the product portfolio, offering solutions that are increasingly adapted to each wine;
• Amorim Cork Flooring: proposes customisation as a business strategy, focusing on differentiation as added value, especially when it comes to cork. The combination of cork, sustainability, distinctive features and differentiating solutions are essential for a premium product. The emphasis is on sustainability, with projects under development, as is the case with Dekwall, cork wall coverings with greater fire resistance. New projects include innovative finishes such as digital printing (registered embossing), simulating wood grain without using harmful plastics. The application of varnishes provides high resistance to wear in both domestic and commercial settings. The importance of monitoring the market and working in partnership with customers and other stakeholders is particularly emphasised. The commitment to products that are free from fossil-based plastic, investment in the circular economy and the elimination of compounds such as PVC by 2024 are clear targets. Innovation is a crucial aspect for fulfilling these objectives and ensuring the
• Company remains a pioneer in a constantly evolving market; • Amorim Cork Composites: Corkeen, a solution for shockabsorbing surfaces, was one of the highlights of 2020, but the BU is currently investing in various projects encompassing mobility, energy, sustainable toys and the aerospace industry. Innovation is a fundamental part of the strategy, which includes constantly seeking to add value to cork. In mobility, cork is used to reduce the carbon footprint and provide thermal insulation for electric batteries, while in the aerospace industry it is chosen as a coating for satellites. In energy, the pioneering use of cork with recycled polymers in the Alqueva floating photovoltaic plant stands out. The i.cork factory, a pilot plant and innovation hub, plays a crucial role. The new ACC Design Studio department will strengthen the focus on product design. In the area of sustainable toys, Korko, the cork toy brand in partnership with Hape, is leading the way with the launch of a new collection. Sustainability and circularity form the basis of these projects, and Amorim Cork Composites is a company that balances conventional applications with innovation. Partnerships with stakeholders, including customers, are essential if the Company is to drive innovation;
• Amorim Cork Insulation: innovation means making progress on applications for the 100% natural material, cork, in collaboration with various partners. The importance of offering solutions to architectural and environmental challenges is emphasised,

while continuous progress is promoted. The MDFachada solution incorporates visible cork into buildings and gives rise to aesthetically diverse decorations. The utilisation of by‑products in solutions for natural turf, initially for stadiums, is now applied to landscaped roofs and vertical gardens, reducing water consumption and keeping thermal variation to a minimum. In addition to architecture and interior design, innovation also extends to environmental protection, as is the case with Corksorb, which has been tested to treat hydrocarbon spills and is evolving to treat water for reuse. The wall vaporisation system for protection against fire and climate change uses cork in a system that administers water in extreme conditions. Amorim Cork Insulation stresses circularity, stepping up its efforts to use industry by‑products and promote recycling in order to fully integrate into the circular economy.

i.cork factory

Built in 2018, it is fully dedicated to the research and development of new and innovative products that add value to cork, with the main mission of designing new materials, as well as testing and exploring the application of technologies not yet industrialised in the sector. The i.cork factory functions as a true hub of innovation and creativity for the development of new products and new formulae for manufacturing composite materials with cork, in which opportunities to incorporate materials from the circular economy are explored on a daily basis, aiming to design new materials and explore the application of technologies that have not yet been industrialised in the sector. Given its proximity to the market, the innovation factory also functions as a platform for cooperation and collaborative work, from which synergies are developed with universities, research centres and customers, in search of high‑ ‑performance and often disruptive solutions. As well as contributing to the culture of innovation that is part of Amorim Cork Composites' DNA, the i.cork factory also plays a fundamental role in expanding the product portfolio and training technicians, customers and distributors. https://amorimcorkcomposites.com/

14 Releasable TCA content below the quantification limit of 0.5 ng/L.

The i.cork factory serves as a true hub of innovation and creativity for the development of new products and new formulae for manufacturing composite materials with cork.

6. GOVERNANCE INFORMATION

6.1 BUSINESS CONDUCT

(SDGs 8, 12 , 13, 17)

6.1.1 STRATEGY AND IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Corticeira Amorim bases its operations on high standards of business ethics, fostering appropriate professional and ethical conduct in all relationships with its stakeholders. It thereby delivers results that are the fruit of its management vision, the efficiency of its processes, continuous innovation, the professionalism and competence of the team, the competitiveness of its offer and its reputation in the marketplace. To this effect, it assumes a set of commitments in matters of ethics and environmental and social responsibility, in particular through the formalisation of coherent and comprehensive internal regulations (codes, policies, regulations and procedures), which materialise the principles by which the Company governs its business activity, promoting these principles in its sphere of influence, in particular in the supply chain, and it invites suppliers and service providers to adhere to the same principles.

Aware of the risks to which its business activity and value chain are subject and the interests of its stakeholders, Corticeira Amorim regularly analyses these matters, promoting reflection with a view to bridging possible gaps and maintaining the alignment of internal regulations with best international practices.

To identify the material impacts, risks and opportunities related to business conduct, it also takes into account environmental, social and economic impacts. This process also takes into account the location, the activity and the sector, ensuring a complete assessment of the different operational contexts. To ensure transparency and that stakeholders understand the process and results, all the relevant criteria used in the process of identifying impacts, risks and opportunities are disclosed in Chapter 2. Corticeira Amorim/2.6 Definition of strategy.

The Board of Directors delegated powers to a CECA and established two specialised internal committees: a Risk Committee and the CESG. The General Meeting also established an Appointments, Evaluation and Remuneration Committee (CNAR). These committees have specialised knowledge of business conduct issues and take part in ongoing training and refresher courses, ensuring their ability to deal with emerging challenges in this area. In this way, they play a crucial role in promoting responsible business conduct.

The CESG met four times in 2023. The processes that it appraised, and in which it actively collaborated, are specified in Chapter B - Corporate Boards and Committees/II. Management and supervision/Committees within the Board of Directors/III. ESG Committee. Of particular note are the management, alignment and monitoring of the progress of compliance with the targets established in social and environmental matters; the analysis of external recommendations on sustainability reporting practices; the updating of Corticeira Amorim's sustainability roadmap; the monitoring of key indicators, in particular those related to work-related injuries, equality and inclusion; regular monitoring of the implementation

of the Equality Plan for 2023; analysis of the progress, objectives, actions and targets for the Equality, Diversity and Inclusion Plan 2024; review of the Code of Business Ethics and Professional Conduct; appraisal of the Anti-corruption Code of Conduct, which replaces the previous Anti-corruption Policy; appraisal of the Risk Prevention Plan for Corruption and Related Infractions and the Code of Ethics and Conduct for Suppliers; appraisal of procedures for verifying compliance in Human Rights matters; appraisal of the Corporate Governance Report and the Sustainability Report, which form part of Corticeira Amorim's consolidated accounts for 2022.

The Company will continue to strengthen its business conduct mechanisms, always striving for excellence in this area. A commitment to sustainability is a commitment to the future, and responsible business behaviour is a fundamental pillar for building a fairer, more equitable and sustainable future.

Training plan for the Code of Business Ethics and Professional Conduct

It is crucial for Corticeira Amorim that all workers are aware of and committed to ensuring compliance with the rules specified in the Code of Business Ethics and Professional Conduct and behave in line with the principles and values advocated by this Code.

The commitment is to ensure that all workers are trained in the Code of Business Ethics and Professional Conduct.

With this in mind, a multimedia training programme (e-learning) was developed, which can be undertaken individually, either on a computer or a mobile phone. This training has a test at the end and is only completed when each worker achieves a minimum score of 80%.

This year, the training was finalised for workers in Portugal who were already part of the Company. In 2024, the aim is to cover 100% of companies outside Portugal and ensure that all new workers are trained in the Code of Business Ethics and Professional Conduct.

Since the start of the project in 2022, 9,364 hours of training have been given on this Code.

Those who undertook the training received a summary copy, while all employees receive a full and complete version of the Code of Business Ethics and Professional Conduct, which is attached to their employment contract. The Code is available and accessible to all stakeholders on the Corticeira Amorim website.

Code of Business Ethics and Professional Conduct, Risk Committee Regulation, Appointments, Evaluation and Remuneration Committee Regulation and ESG Committee Regulation available at:

6.1.2 METRICS AND TARGETS

6.1.2.1 CORPORATE CULTURE AND BUSINESS CONDUCT POLICIES

The foundations of Corticeira Amorim's success are deeply embedded: entrepreneurial vision, responsibility and rigour, creativity and innovation. The Company has a set of internal regulations and policies which, associated with the Company's Articles of Association, the Code of Business Ethics and Professional Conduct and strict guidelines and processes, supported by appropriate training, enable the interests of its stakeholders to be aligned, foster the balanced and prudent management and sustainability of the Company, mitigate risks and guarantee compliance with legal and other requirements to which the Organisation is committed, in its operations and in the value chain, in the interests of competitiveness and the creation of long-term value in a transparent and responsible manner.

The Company has established a robust mechanism for identifying, reporting and investigating irregularities: the Company's internal whistleblowing channel (set up in accordance with Law 93/2021 of 20 December, which transposed into national law Directive (EU) 2019/1937 of the European Parliament and of the Council on the protection of whistleblowers), which deals with: (i) incidents concerning business conduct, including corruption and bribery and (ii) unlawful behaviour or behaviour contrary to the Code of Business Ethics and Professional Conduct – whistleblowing mechanism. This mechanism considers information provided by internal and external stakeholders. The Company encourages the reporting of irregularities through this channel and ensures that workers receive adequate information and training on this subject.

Reporting of irregularities

In line with its strict sense of ethics, Corticeira Amorim has formalised an internal reporting procedure, designed to prevent and detect improper and/or illegal behaviour within the context of professional activity, and to protect those who report it in good faith and with serious grounds, as well as related persons and entities.

The rights and guarantees of those submitting a report, namely regarding confidentiality and anonymity, the processing of personal data, as well as the conditions and measures for their protection, are legally established in this specific scheme and in other applicable ones, as well as in the Privacy Policy (attached to this Procedure), and are duly observed. These include the prohibition of retaliation against those submitting the report and any acts or the omission thereof that, in a professional context and motivated by the report, directly or indirectly cause or may cause harm to the person submitting the report.

More detailed information can be found in Chapter C - Internal Organisation/II. Reporting of irregularities/49. Reporting means and policy on the reporting of irregularities in the Company of the Corporate Governance Report and in the Procedure for Reporting Irregularities.

In 2023, ten reports of irregularities were received through this procedure. Of these, five were related to social aspects:

• Labour safety conditions: an external audit was requested and no serious situations were revealed. However, there were improvements in specific situations;
• Discrimination in labour conditions: two issues relating to unequal pay for night work, shifts and fixed hours were examined and clarified, with no irregularities detected. In addition, there was another complaint about inequality in annual increments, also with no irregularities detected;
• Ethnic discrimination: an anonymous complaint was received, with no details and no targets, so it could not be assessed.

In addition, five environmental complaints were received regarding the same situation. As they had previously been reported through external public channels, they could not be assessed in the internal channel, but the appropriate and necessary measures are already being monitored by the competent authorities.

Procedure for Reporting Irregularities and Irregularities' Internal Communication Form available at: https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/ Internal irregularities reporting channel:

https://corticeiraamorim.integrityline.com/?lang=en

6.1.2.2 MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS

Corticeira Amorim seeks an in-depth understanding of its suppliers' behaviour and practices. To this end, the selection of suppliers is based on criteria that go beyond technical and economic aspects. Whenever possible, Corticeira Amorim gives preference to suppliers who adopt good ESG practices, both with regard to the source of materials and operational processes. It also explains the Organisation's ethical and conduct values to suppliers, encouraging them to adopt them and thereby reinforcing responsible behaviour throughout the value chain.

The Company has clear procedures to avoid late payments, especially to SMEs. These practices are designed to ensure that suppliers are paid fairly and within the agreed deadlines.

The Purchasing Policy and the Code of Ethics and Conduct for Suppliers set out the Company's commitments, reflect its culture and define appropriate behaviour in terms of the ethical, social and environmental conduct that Corticeira Amorim expects from suppliers of goods and services.

All suppliers and business partners must, in conjunction with Corticeira Amorim, guide their actions by the highest principles of integrity, transparency, honesty and good business practices, while absolutely repudiating all forms of conduct, behaviour or practices that are, or which they may consider to be, irregular, illegal, unethical and/or dishonest.

Various initiatives are conducted to ensure that suppliers comply with the technical ESG and legal requirements required by the Company. Corticeira Amorim has therefore implemented supplier selection and evaluation processes in which all suppliers are required to submit documents proving their compliance with requirements in terms of environmental and social aspects, as well as compliance with prevailing legislation and specific qualification standards. In addition, the Company has an annual training plan available for employees in the purchasing areas, that covers the topics of the Code of Business Ethics and Professional Conduct and the Anti-corruption Code of Conduct. Finally, Corticeira Amorim actively collaborates with suppliers to encourage more sustainable practices, through environmental education and awareness-raising activities and technical support.

In 2023, through its subsidiary Amorim Florestal, it created the first ESG financing line for suppliers of raw cork in an effort to reinforce its commitment to sustainable development and the preservation of forests. The agreement centres around a revamped financing line dedicated exclusively to cork suppliers, with particularly advantageous conditions linked to sustainability criteria.

Corticeira Amorim has been striving to promote adherence to the Code of Ethics and Conduct for Suppliers throughout its supply chain, thereby improving the process of selecting and assessing suppliers.

ESG credit line for raw-material cork suppliers, in partnership with Caixa Geral de Depósitos

In 2023, Corticeira Amorim, through its subsidiary Amorim Florestal, established an innovative partnership with Caixa Geral de Depósitos (CGD), launching the first ESG operation in the sector, which aims to reinforce both companies' commitment to sustainable development and the preservation of forests. The agreement centres around a revamped financing line dedicated exclusively to cork suppliers, with particularly advantageous conditions linked to sustainability criteria.

Corticeira Amorim's cork suppliers will thus be able to benefit from a discount on the financing spread granted by CGD, determined by their level of ESG classification and their FSC® forest certification status, which is directly proportional to their respective level of development as regards ESG practices and forest management. These special conditions aim to encourage Corticeira Amorim's cork suppliers to adopt responsible and sustainable management practices, thus contributing to a more positive environmental and social impact.

This is an innovative operation, fully conceived and structured by the two organisations. It is the first supply chain financing organised by Corticeira Amorim and is aimed at encouraging best ESG practices throughout the entire chain.

Purchasing Policy and Code of Ethics and Conduct for Suppliers available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

PU with forest products chain of custody certification (%) * Cork and cork products of local origin (%) PU with international code of

96.0 % 96.0 % 57.1 % 72.0 %

cork stopper manufacturing practices certification (%) **

Considers the number of certifications amongst the total of 28 PUs (*), 25 PUs of the Amorim Florestal and Amorim Cork BUs (**) For the purposes of this report, local origin is considered to be sourced from Portugal and Spain and controlled origin is considered to be low risk for all five categories of unacceptable sources, under the FSC® controlled wood system, which also covers cork, i.e. the countries of Portugal and Spain.

Procurement and supply of cork

Cork and cork products of controlled origin (%) As a leader in the sector, Corticeira Amorim recognises the influence of its business activities in enhancing the value of cork oak forests and implementing best management practices, and its major investment in forestry research and development and process innovation is a constant priority and a determining factor for its business competitiveness. As part of these action areas, the Company pursues responsible purchasing practices in controlled areas, establishes medium to long-term partnerships with cork suppliers and actively promotes the development of certified forests. These actions demonstrate the Company's ongoing commitment to sustainability and social responsibility throughout its value chain.

Medium-long term partnership relationship with cork suppliers

The Amorim Florestal BU has developed a knowledge and georeferencing database that provides access to highly reliable data on the quantitative and qualitative evolution of cork production in the different cork-producing areas, regions and countries. In the Iberian Peninsula, there are currently, ten thousand estates with cork oak groves, as classified by the Amorim Florestal BU. This means that today, in terms of information management, Amorim Florestal has already identified the location and size of each estate, the year of harvesting and the profile of the producer.

Purchases in controlled origin

	Unit of measurement	2023	2022	2021
Purchases of cork and cork products
Portugal and Spain	K€	404,252	314,171	277,206
North Africa	K€	13,730	15,048	12,782
Other locations	K€	3,094	1,470	1,588
Total purchases of cork and cork products	K€	421,077	330,689	291,577

In 2023, Corticeira Amorim made purchases of cork and cork products totalling 421.1 million euros, 96.0% of which were in Portugal and Spain. These are regions considered to be of controlled origin, i.e. low risk for all five categories of unacceptable sources under the FSC® controlled wood programme, which also covers cork. Corticeira Amorim also acquires cork from Morocco, Algeria and Tunisia (3.3%). In these countries, the sales process is conducted by the State - the only forestry producer in those territories - by private or public auction.

Adding value to certified forests

Amorim Cork Composites, S.A. received FSC® certification in 2004, thereby becoming the first company in the cork industry to do so.

The entire purchasing process of the Amorim Florestal BU results from historical knowledge and the evaluation of cork in the harvest year or the immediately preceding year. Those responsible for managing the estates can certify their good practices by submitting them to the FSC® certification process. Corticeira Amorim favours suppliers that comply with the International Code of Cork Stopper Manufacturing Practice (ICCSMP) and have a forestry certification, in particular FSC® certification, these standards also being adopted by the Company: 72.0% of Corticeira Amorim's production units have external certification attesting to compliance with the ICCSMP and 57.1% of production units have chain of custody certification in accordance with the FSC®, thereby confirming the commitments and actions in place to protect biodiversity, the rights of employees, the rights of indigenous peoples and areas of significant environmental and cultural importance.

Programme to enhance the value and sustainability of the cork oak and associated biodiversity

Between 2008 and 2015, Corticeira Amorim developed, in partnership with other institutions, a programme of initiatives aimed at enhancing the value and sustainability of the cork oak tree and associated biodiversity. Among the key initiatives undertaken include the provision of a free technical advisory service to owners and the establishment of two awards: one which distinguished the best research work and the other which distinguished best management practices with regard to enhancing the value and sustainability of the cork oak tree and associated biodiversity. This partnership was created when Corticeira Amorim joined the European Commission's "Business and Biodiversity" initiative and its partners were the Portuguese Institute for Nature Conservation and Forests (ICNF), the World Wildlife Fund and Quercus, this initiative having contributed to the certification of more than 20 thousand hectares of cork oak forest in Portugal.

Procurement and supplies of non-cork products

The acquisition of non-cork products includes a pre-qualification, qualification and evaluation of suppliers. The aim is to gain detailed knowledge of the practices of suppliers, preferably selecting those that offer the best negotiating conditions and share Corticeira Amorim's principles and commitments in ESG matters, in particular those stipulated in the Code of Ethics and Conduct for Suppliers.

Qualified suppliers must fulfil the quality standards for supplies, delivery deadlines and social and environmental responsibility indices defined by Corticeira Amorim. For this purpose, a methodology established by the Company is applied, characterised by indices of social responsibility (IRSoc) and of environmental responsibility (IRAmb), that determine that companies which would like to be suppliers to Corticeira Amorim must make the following commitments:

• Do not violate privacy or lose any customer data, in particular from Corticeira Amorim companies;
• Do not use child labour;
• Do not use forced or compulsory labour;
• Do not practice any type of discrimination;
• Reduce waste and effluents;
• Handle chemicals in an environmentally safe manner;
• Handle, store and forward hazardous waste in an environmentally safe manner;
• Contribute to the recycling and reuse of materials and products.

IRSoc and IRAmb are calculated according to the percentage of requirements fulfilled by the supplier. An IRSoc of 100% is applied if the supplier is NP 4469 or similarly certified. An IRAmb of 100% is applied if the supplier is ISO 14001 certified.

According to the index under analysis, for each requirement that the supplier does not commit to comply with, 25% will be taken from the IRSoc or IRAmb. If the supplier fails to comply with one or more requirements in its commitment, the IRSoc or IRAmb will be zero.

The selected suppliers are subject to an annual audit programme based on the following criteria:

• Performance from the previous year;
• Criticality of the products/services provided; or
• Product quality and good environmental and social practices in the case of new suppliers.

After each audit, the suppliers' performance is evaluated in order to assess the criteria required for qualification and to be able to detect non-conformities. When non-conformities are identified, an action plan is requested and, depending on the criticality of the non-conformities detected, follow-up audits and verification of measures to mitigate the non-conformities are carried out. Furthermore, it may also be necessary to collaborate with the supplier to resolve the non-conformities or find alternatives to that supplier. In 2023, Corticeira Amorim did not replace any suppliers as a result of the supplier prequalification, quantification and evaluation process.

6.1.2.3 PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY

Corticeira Amorim absolutely rejects all and any unethical or dishonest conduct or behaviour, in particular fraud, corruption, money laundering or financing of criminal or terrorist organisations, and has a position of zero tolerance in relation to any act or omission that could, even potentially, lead to situations of conflict of interest, undue advantage, inducement or permeability. In this manner, the Company aims to promote free competition and loyalty in the market.

Corticeira Amorim is committed to ensuring, through appropriate regulatory compliance programmes, all the necessary conditions for compliance with the rules on the prevention of corruption.

The Company considers that the roles most exposed to the risk of corruption and bribery are those involved in negotiations, purchases, sales and relations with external partners. To manage corruption issues, and as a complement to the Code of Business Ethics and Professional Conduct and the Code of Ethics and Conduct for Suppliers, the Company has the following instruments: Risk Prevention Plan for Corruption and Related Infractions, Anti-corruption Code of Conduct, an internal training plan on the subject, as well as an internal whistleblowing channel and a compliance officer. These documents and procedures, which define and regulate the behaviour and measures to be adopted by Corticeira Amorim and its stakeholders, are in line with the United Nations Convention against Corruption. Additional information on the internal training plan, in which the topics of corruption and bribery are dealt with, is provided in Chapter 6. Governance information/6.1 Business conduct/6.1.1 Strategy and impact, risk and opportunity management.

The Risk Prevention Plan for Corruption and Related Infractions, which will be permanently monitored and periodically reviewed by an independent committee, identifies, analyses and classifies, for each of the Organisation's entities and business and support areas, the potential risks of corruption or related offences associated with the activity, and systematises the measures already in place to prevent these risks, as well as the corrective measures to reduce the likelihood of occurrence and the impact of the risks and situations identified. In 2023, specific training on the subject continued to be given, especially to managers, with a total of 1,879 hours of training provided. To ensure it is easily accessible to all

stakeholders, the plan is communicated on Corticeira Amorim's corporate website, as is the interim evaluation report on the high‑ ‑risk situations identified.

Corticeira Amorim adopts the Anglo-American governance model, with an extended Board of Directors, including an Audit Committee, in the current term of office composed entirely of independent members, as well as dual supervision by the Audit Committee (inspection/supervision) and the Statutory Auditor (financial supervision). The Audit Committee issues a report on its inspections, giving its opinion on the Management Report and Financial Statements. Its activities include, among other things, reporting to the Board of Directors on the irregularities reported, while maintaining anonymity and confidentiality. In 2023, there were no confirmed cases of corruption or bribery within the Company or in the value chain where its employees are directly involved, meaning the Company did not pay any fines or penalties for breaches of anti-corruption and anti-bribery laws.

Code of Business Ethics and Professional Conduct, Code of Ethics and Conduct for Suppliers, Risk Prevention Plan for Corruption and Related Infractions, Anti-corruption Code of Conduct, Irregularities' internal reporting procedure and Interim assessment report of identified high-risk situations of the Risks of Corruption and Related Offences Prevention Plan available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

6.1.2.4 APPROACH TO TAX

Corticeira Amorim is committed to contributing to the welfare of the community in which it operates and to developing ethical and socially responsible behaviour and is fully committed to its responsibility to contribute to sustaining public spending, implementing good practices in matters of taxes and contributions, in particular to public Social Security schemes, and considers that any form of fraud against the various (national and international) tax and Social Security authorities is reprehensible.

The Organisation complies with the tax and corresponding tax disclosure requirements in each jurisdiction in which Corticeira Amorim companies operate, in accordance with the applicable laws and regulations, taking the necessary measures to ensure prompt compliance with all its obligations.

Corticeira Amorim, as detailed in its Tax Policy, is committed to:

• Act in full compliance with the laws and regulations in force in the regions where it operates, and to collaborate with the authorities as far as possible;
• Implementing good practices in terms of taxes and social security, considering any form of fraud against the various tax and social security authorities to be reprehensible;
• The Organisation undertakes to observe procedures to prevent and detect illegal practices in financial and accounting matters, including money laundering and the financing of terrorism, by Employees or third parties;
• Pay special attention to the nature of the transaction when there are abnormal payments and receipts in cash, or cheques and currencies other than those included in the agreed payment terms, complying with the regulations in force in all circumstances and at all times.

Governance, control and fiscal risk management

Corticeira Amorim presents an integrated flow of governance of the risk management process, including tax risks, based on the concept of the lines of defence described in detail in Chapter C – Internal Organisation/III. Internal Control and Risk Management of the Corporate Governance Report.

In operational terms (1st Line of Defence), each BU has its own officer responsible for tax matters, who reports directly to the CEO of the respective BU.

There is also a transversal tax support division, which is responsible for monitoring and coordinating the activities of the holding company, the BUs and their respective operational areas, with monitoring by the CECA. This division provides support to the BUs and provides the general guidelines that Corticeira Amorim as a whole must follow, which, in particular, specify the following:

• Ensure full compliance with the tax obligations established in the respective legislation and resulting from the economic and social activities carried out in each country, through compliance with all reporting obligations and payment of the taxes, contributions and other levies that are due;
• Guarantee the adequate and prudent interpretation of the legislation in force applicable to the operations carried out, with the support of external consultants and requesting the opinion of the local tax authorities when necessary and possible, in order to ensure full compliance with the applicable rules;
• Build a proactive, healthy and close cooperation relationship with the tax authorities of the various countries in which it operates, in order to ensure the provision of information, documentation and clarifications necessary for a proper understanding of the Company's operations in those countries;
• Develop the tax function with the utmost rigour and professionalism, in line with Corticeira Amorim's Tax Policy aimed at:
  • Implementation of the options that prove to be most appropriate for the business and shareholders, in strict compliance with the law;
  • Use tax benefits and incentives that are applicable and appropriate to the business conducted;
  • Definition of the terms and conditions of intragroup transactions, taking into account the rules, the Organisation for Economic Co-operation and Development (OECD) guidelines and the best international practices applicable to transfer pricing;
  • Full (content) and prompt compliance with the obligations of disclosure and reporting of information of a fiscal and para‑fiscal nature, including, among others, the country‑by‑ ‑country reporting and those arising from the application of the BEPS 2.0 Pillar Two Global Anti‑Base Erosion Model Rules, to which the Organisation companies are obliged.

Corticeira Amorim implements an appropriate governance model to monitor, measure and manage tax risks, taking into consideration the best practices, experiences and perspectives, as well as the specific aspects of each jurisdiction in which it has subsidiaries. The Company maintains adequate supervision of its tax practices to reduce potential financial and reputational impacts.

Engaging stakeholders and managing their tax concerns

Corticeira Amorim's presence in different jurisdictions is based on commercial and business objectives. Therefore, the Company adopts tax strategies aligned with its business activity, ensuring that decisions are taken based on legitimate commercial and business considerations and not for tax reasons.

To promote transparent and trustworthy relationships with the tax authorities and other stakeholders, the Company adopts several practices, in particular:

• Managing the relationship with the tax authorities so as to minimise the risk of litigation, disputes or others;
• Seeking appropriate tax advice, with the participation of internal specialists and external consultants, reinforcing the internal control environment;
• Adequate disclosure of its Tax Policy, as well as the nature and amount of payments made to public entities.

Tax Policy available at:

https://www.amorim.com/en/investors/corporategovernance/corporate-regulation-and-policies/

6.1.2.5 POLITICAL INFLUENCE AND LOBBYING ACTIVITIES

Corticeira Amorim assumes itself to be a non‑partisan and non‑ ‑political organisation. Corticeira Amorim companies actively participate in national and international initiatives and associations in the geographical regions where they operate. Many of the Company's representatives take part in these initiatives in order to maximise their impact. Corticeira Amorim's stakeholder representation activities address a variety of important topics, and the Company maintains clear positions on these issues. These positions are outlined in relation to the material impacts, risks and opportunities identified. In 2023, the value of the contributions totalled around 706.8 thousand euros for the financial perimeter.

The members of Corticeira Amorim's management and supervisory bodies do not hold comparable positions in the Public Administration (including regulators), nor did they in the two years prior to their appointment.

For additional information on the experience of the representatives and the amounts of their contributions, see Chapter B – Corporate Boards and Committees of the Corporate Governance Report/ III. Supervision/33. Professional qualifications of each member of the supervisory body and other important curricular information and Chapter 5. Social information/5.2 Community/society and innovation/5.2.2 Metrics and targets/5.2.2.1 Social balance of this report and Chapter 30 – Other income and Gains/Other Costs and Losses of the Notes to the Consolidated Financial Statements, respectively, and the Chapter Voluntary commitments.

With the acquisition of Herdade de Rio Frio, we are combining history with innovation and commitment. This estate is home to one of the largest swathes of planted cork oak forest in the world, and also the largest area planted with cork oaks at a defined pace.

7. SUSTAINABLE FINANCE

For Corticeira Amorim, sustainable finance instruments play a pivotal role in advancing environmental and social sustainability objectives, while also fostering transparency and risk mitigation within the financial system by ensuring the proper governance of financial and corporate stakeholders.

The Company uses sustainable finance instruments as the main source of funding for projects included in the Sustainable by nature programme.

In 2020, Corticeira Amorim was a pioneer in the cork industry, launching its first Green Bond issue. Since then, it has significantly expanded the use of such instruments, with various issues in different formats.

Corticeira Amorim has adopted two sustainable finance frameworks:

• Green Bond Framework (GBF) implemented in November 2020, it is aligned with the four components of the Green Bond Principles (GBP) of the International Capital Markets Association (June 2018 version). Under the GBF, green bonds worth 40 million euros;
• Green Finance Framework (GFF) implemented in November 2022, it is aligned with the London Market Association's Green Loan Principles (February 2021 version). Under the GFF, two Green Commercial Paper Programmes were contracted, totalling 55 million euros.

A 20 million euros Sustainability Linked Commercial Paper Programme and an 11.6 million euros Green Commercial Paper Programme were also agreed.

Thus, as of 2023, Corticeira Amorim has implemented five Sustainable Finance Instruments, totalling 126.6 million euros.

Corticeira Amorim believes that financial instruments with ESG criteria are effective tools for supporting sustainable economic growth, both in its own operations and in the value chain. As an example of the latter, in September 2023 Corticeira Amorim, through its subsidiary Amorim Florestal, established the first ESG financing line for suppliers of cork raw materials, in partnership with Caixa Geral de Depósitos. Corticeira Amorim's cork suppliers will thus be able to benefit from a discount on the financing spread granted by said financial institution, determined by their level of ESG classification and FSC® forest certification status, which is directly proportional to their respective level of development as regards ESG practices and forest management. These special conditions aim to encourage Corticeira Amorim's cork suppliers to adopt responsible and sustainable management practices, thus contributing to a more positive environmental and social impact.

€126,600 K of Sustainable Finance Instruments contracted

€119,200 K of Sustainable Finance allocated

€40,000 K	€20,000 K	€11,600 K	€20,000 K	€35,000 K
Green bonds	Sustainability	Green	Green	Green
2020-2025	linked	commercial	commercial	commercial
	commercial	paper	paper	paper
	paper	programme	programme	programme
	programme	2021-2026	2022-2027	2022-2029
	2021-2024

Further information available at:

https://www.amorim.com/en/investors/marketinformation/ https://www.amorim.com/en/sustainability/reports/

7.1 ALLOCATION

In 2023, 119.2 million euros of sustainable finance was allocated to eligible sustainable projects, corresponding to the full Green Bonds €40 M - December 2020, Green commercial paper programme €20 M – December 2022 and Sustainability linked commercial

paper programme €20 M – August 2021 and, part of the Green commercial paper programme €35 M - December 2022 and the Green commercial paper programme €11.6 M – December 2021.

	Amount allocated
Characteristic
Refinancing	89,000
Financing	30,200
By Business Unit
Amorim Florestal	57,897
Amorim Cork	13,657
Amorim Cork Flooring	11,412
Amorim Cork Composites	5,500
Amorim Cork Insulation	452
Holding	30,200
Management fees	83
By operation and instrument
Green bonds
Green bonds €40 M – December 2020	40,000
Green finance
Green commercial paper programme €11.6 M - December 2021	10,200
Green commercial paper programme €20 M - December 2022	20,000
Green commercial paper programme €35 M - December 2022	29,000
Sustainability Linked
Sustainability linked commercial paper programme €20 M – August 2021	20,000
By instrument and eligible category
Green bonds/Green finance
Environmentally sustainable management of living natural resources and land use	55,124
Renewable, low-carbon, eco-efficient and/or circular economy adapted products, production technologies and processes	24,254
Renewable energy and waste to energy	13,662
Waste management and resource efficiency	6,077
Management fees	83
Sustainability Linked
Renewable energy and waste to energy and waste management and resource efficiency	20,000
By category
Environmentally sustainable management of living natural resources and land use	55,124
Renewable, low-carbon, eco-efficient and/or circular economy adapted products, production technologies and processes	24,254
Renewable energy and waste to energy	13,662
Waste management and resource efficiency	6,077
Renewable energy and waste to energy and waste management and resource efficiency	20,000
Management fees	83
Total	119,200

Amounts in thousand euros.

7.1.1 GREEN BOND FRAMEWORK - DECEMBER 2020

In 2020, Corticeira Amorim issued the cork industry's first Green Bonds under the Green Bond Framework, in what was an important milestone in its sustainability strategy.

The proceeds of this Green Finance Facility were disbursed and fully allocated and were used to refinance projects totalling 40 million euros, selected in accordance with the project evaluation and selection process described in section 3.2 of the GBF. Only projects belonging to the following Eligible Green Categories were considered eligible:

• Environmentally sustainable management of living natural resources and land use;
• Renewable, low-carbon, eco-efficient and/or circular economy adapted products, production technologies and processes;
• Waste management and resource efficiency;
• Renewable energy and waste to energy.

Sustainalytics reviewed the Green Bond Framework – November 2020 and issued its Second Party Opinion (SPO), confirming its alignment with the Green Bond Principles specified on June 2018 by the lnternational Capital Markets Association (ICMA). Banco BPI, S.A. (www.bancobpi.pt), was responsible for organising, structuring and guaranteeing the subscription, as well as acting as paying agent.

Description of the investment and use of proceeds:

Through the allocation of the proceeds of the Green Bonds, Corticeira Amorim supports the pursuit of UN SDGs 7 Affordable and Clean Energy, SDG 8 Decent Work and Economic Growth, SDG 9 Industry, Innovation and Infrastructure, SDG 11 Sustainable Cities and Communities, SDG 12 Responsible Consumption and Production, SDG 13 Climate Action and SDG 15 Life on Land.

Corticeira Amorim publicly discloses the Allocation and Impact Report. This report is annual and is independently verified by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A.

Further information available at:

https://www.amorim.com/xms/files/v1/Investidores/7\_ Comunicados/2020-12-03\-\_CA\-\press\_release\-Ingles-.pdf https://www.amorim.com/xms/files/v1/Investidores/7\_ Comunicados/Corticeira\Amorim\_Green\ Bond\40\_M\_2020-25\_Framework\-\_26-11-2020.pdf https://www.amorim.com/xms/files/v1/Investidores/7\_ Comunicados/Corticeira\Amorim\_Green\ Bond\40\_M\_2020-25\_Sustainalytics\_SPO\-\_27-11-2020.pdf

Green bonds €40 M - December 2020 BBPI 2020-2025 Environmentally 4,914 Refinance the acquisition, plantation, maintenance and Promote the 11, 15 Herdade da Baliza sustainable management of cork oak forests using new silviculture models implementation of management of living based on drip irrigation sustainable forest natural resources and management and mobilise land use resources 1,210 Refinance the acquisition, plantation, maintenance and Promote the 11, 15 Herdade da management of cork oak forests using new silviculture models implementation of Venda Nova based on drip irrigation sustainable forest management and mobilise resources Renewable, low carbon, 9,032 Refinance equipment and infrastructures to increase the Strengthen resilience 8, 9, 12, 13 Eco-efficient products eco-efficient and/ quantity and quality of production of renewable, low carbon, and adaptability to project climate-related risks or circular economy eco -efficient products with the purpose of replacing fossil- adapted products, -based and other non -renewable materials with bio -based production technologies alternatives and refinancing the research, development, and processes equipment and infrastructures for the manufacture of circular economy products 15,222 Refinance equipment and infrastructures to increase the Strengthen resilience 8, 9, 12, 13 Circular economy quantity and quality of production of renewable, low carbon, and adaptability to project eco -efficient products with the purpose of replacing fossil- climate-related risks -based and other non -renewable materials with bio -based alternatives and refinancing the research, development, equipment and infrastructures for the manufacture of circular economy products Renewable energy 3,462 Refinance the maintenance and upgrading of equipment and Increase the use of 7 Renewable energy and waste to energy infrastructures used to produce energy from biomass and waste renewable energy and project (biomass) products improve the efficiency of global resources, thereby achieving sustainable management Waste management and 6,077 Refinance equipment and infrastructures involved in resource Improve the efficiency of 12 Project to increase resource efficiency efficiency and/or waste reduction, minimisation and reuse global resources, thereby efficiency processes in Corticeira Amorim's operations achieving sustainable management Total 40,000	Eligible category	Amount allocated (K€)	Use of proceeds	Sustainable objective	SDG	Eligible projects

Including banking fee

7.1.2 GREEN FINANCE FRAMEWORK – NOVEMBER 2022

Under the Green Finance Framework – November 2022, in December 2022 Corticeira Amorim agreed a 20 million euros Commercial Paper Programme (CPP), maturing in 2027, with Caixa - Banco de Investimento, S.A. (organiser, leader, paying agent and registering institution) and Caixa Geral de Depósitos, S.A. (subscription guarantee), and a 35 million euros, Commercial Paper Programme, maturing in 2029, with Banco de Sabadell, S.A. – Portuguese branch (organisation, structuring, subscription guarantee and paying agent).

The proceeds from these operations were used to refinance the acquisition of Herdade de Rio Frio, S.A. (the company that owns a significant part of the so-called Herdade de Rio Frio estate) and to finance investment in new cork oak plantations, supporting the pursuit of SDG 11 Sustainable Cities and Communities, SDG 12 Responsible Production and Consumption and SDG 15 Life on Land.

The commercial paper issued under these programmes qualifies as a Green Finance Facility under the Green Finance Framework - November 2022 falling under the eligible category of environmentally sustainable management of living natural resources and land use.

KPMG & Associados – S.R.O.C., S.A. has confirmed, through the issuance of a limited assurance report, the alignment of the Green Finance Framework – November 2022 with the four components of the London Market Association's February 2021 Green Loan Principles and the International Capital Market Association's June 2021 Green Bond Principles (with Appendix 1 of June 2022).

Corticeira Amorim publicly discloses the Allocation and Impact Report. This report is annual and is independently verified by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A.

Further information available at:

https://www.amorim.com/xms/files/Investidores/ Comunicados/2022-12-22\_-\_Press\_Release\_EN.pdf https://www.amorim.com/xms/files/Investidores/ Comunicados/2022\11\_28\-\Green\_Finance\ Framework\_nov2022.pdf

https://www.amorim.com/xms/files/Investidores/ Comunicados/2022\11\_30\-\Limited\_Assurance\ report\\\_Amorims\_Green\_Finance\_Framework.pdf https://www.amorim.com/xms/files/Investidores/ Comunicados/20221219PressReleaseEN\_PPC.pdf

Description of the investment and use of proceeds:

Eligible category	Amount allocated (K€)	Use of proceeds	Sustainable objective	SDG	Eligible projects
	Green commercial paper programme €20 M - December 2022 Caixa BI 2022-2027
Environmentally sustainable management of living natural resources and land use	20,000	Finance and/or refinance projects related to increasing the area occupied by cork oaks (Quercus Suber) and improving existing areas, as part of the ongoing Forestry Intervention Project. These projects will include actions such as land acquisition, new plantations, increased tree planting density, research and development, maintenance, rehabilitation, restoration and management, partly using new forestry models.	Promote the implementation of sustainable forest management and mobilise resources	11, 15	Herdade de Rio Frio (1,855 ha)
Green commercial paper programme €35 M - December 2022 BSabadel 2022-2029
Environmentally sustainable management of living natural resources and land use	29,000	Finance and/or refinance projects related to increasing the area occupied by cork oaks (Quercus Suber) and improving existing areas, as part of the ongoing Forestry Intervention Project. These projects will include actions such as land acquisition, new plantations, increased tree planting density, research and development, maintenance, rehabilitation, restoration and management, partly using new forestry models.	Promote the implementation of sustainable forest management and mobilise resources	11, 15	Herdade de Rio Frio (3,250 ha)
Total	49,000

7.1.3 SUSTAINABILITY LINKED - AUGUST 2021

Corticeira Amorim has had a 20 million euros Sustainability linked commercial paper programme under way since 2021, which matures in 2024.

Sustainalytics has issued a professional opinion, confirming that Corticeira Amorim's Sustainability Linked Commercial Paper Issuance programme is aligned with the four components of the Loan Market Association's (LMA) 2020 Sustainability Linked Loan Principles.

Caixa – Banco de Investimento, S.A. (CaixaBI) was responsible for organising and setting up the programme and also acted as the paying agent and registering institution. Caixa Geral de Depósitos, S.A. (CGD) provided the subscription guarantee.

The interest rate to be charged on the commercial paper issued under this programme is dependent on the evolution of the following two KPIs for operations in Portugal:

• KPI 1 Energy consumption from controlled renewable sources;
• KPI 2 Proportion of non-cork waste sent for recovery.

Corticeira Amorim publicly discloses the evolution of the KPIs associated with this financing in its Sustainability Report and Allocation and Impact Report. These reports are annual and have independent verification, carried out by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A.

Further information available at:

https://www.amorim.com/xms/files/Investidores/ Comunicados/20210805CorticeiraAmorimGCPP.pdf https://www.amorim.com/en/sustainability/reports/

Description of the investment and use of proceeds:

Eligible category	Amount allocated (K€)	Use of proceeds	Sustainable objective	SDG	Eligible projects
		Sustainability linked commercial paper programme €20 M – August 2021 Caixa BI 2021-2024
Renewable energy and waste to energy and waste management and resource efficiency	20,000	Finance the Company's activities, in particular the Sustainable by nature programme	Increase the use of renewable energy and improve the efficiency of global resources, thereby achieving sustainable management	7, 12	Sustainability Linked
Total	20,000

7.1.4 OTHER INSTRUMENTS

Corticeira Amorim implemented a Green commercial paper programme with a maximum nominal amount of 11.6 million euros and a maturity of up to 2026.

The Company is determined to increase the use of renewable energies. Thus, emissions under this programme are intended to finance the purchase of photovoltaic panels by various Corticeira Amorim companies between 2021 and 2024, which will make it possible to install around 24 MWp, using more than 40 thousand solar panels placed on the roofs of industrial unit buildings. The energy produced will be for self-consumption, representing around 20% of the electricity consumed by Corticeira Amorim, and will make it possible to reduce the Company's scope 2 CO2 emissions.

Banco Bilbao Vizcaya Argentaria, S.A., the Portuguese branch, assumed the organisation, subscription guarantee and also the functions of paying agent, dealer bank and registering institution.

Corticeira Amorim publicly discloses the evolution of the KPIs associated with this financing in its Sustainability Report and Allocation and Impact Report. These reports are annual and have independent verification, carried out by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A.

Further information available at:

https://www.amorim.com/xms/files/Investidores/ Comunicados/20211220CorticeiraAmorimGreenCPP\_ EN.pdf https://www.amorim.com/en/sustainability/reports/

Description of the investment and use of proceeds:

Eligible category	Amount allocated (K€)	Use of proceeds	Sustainable objective	SDG	Eligible projects
Green commercial paper programme €11.6 M – December 2021 BBVA 2021-2026
Renewable energy and waste to energy	10,200	Financing the purchase of photovoltaic panels	Increase the use of renewable energy	7	Photovoltaic project
Total	10,200

7.2 IMPACT

Through sustainable finance instruments, Corticeira Amorim drives positive change in areas crucial to sustainable development. The results and impacts generated by these instruments are presented through the evolution of KPIs, demonstrating the impact of sustainable finance in the following categories:

• Environmentally sustainable management of living natural resources and land use;
• Renewable, low-carbon, eco-efficient and/or circular economy adapted products, production technologies and processes;
• Renewable energy and waste to energy;
• Waste management and resource efficiency.

7.2.1 ENVIRONMENTALLY SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES AND LAND USE

Cork oak forests are located in the Mediterranean basin and form part of one of the world's 36 biodiversity hotspots. As an indigenous species, the cork oak is perfectly adapted to local climatic conditions and arid soils, lives on average 200 years,

and offers a highly positive set of ecosystem services, which include cork supply, climate regulation, fire prevention, soil protection and prevention of desertification, as well as biodiversity. A study carried out by EY in 2019 estimated an average value of more than €1,300/ha/year for the ecosystem services associated with a well-managed cork oak forest.

An awareness of the urgent need to take action, combined with the knowledge accumulated, has led Corticeira Amorim to invest directly in forestry projects involving cork oaks, using a drip irrigation system. This system significantly improves the plantation's chances of success and, at the same time, makes it possible to achieve greater initial tree growth, thus reducing the time it takes to harvest the first virgin cork, from the current 25 years to around half that period.

The aim is to promote the implementation of sustainable forest management and mobilise resources by promoting and disseminating new techniques for planting and managing Portuguese cork oak forests that are more efficient and resilient to the forecast climate scenarios, in alignment with SDGs 11 and 15. The performance indicators selected to assess the impact generated were: intervened forest estates (ha) and planted cork oak trees (no.).

		2023	2022	2021
Eligible projects	KPI
Green Bond Framework - December 2020
Green bonds €40 M - December 2020
Herdade da Baliza	Intervened forest estates under management (ha)	265	130
	Planted cork oak trees (no.)	110,505	54,210
Herdade da Venda Nova	Intervened forest estates under management (ha)	26		251
	Planted cork oak trees (no.)			100,400
Green Finance Framework – November 2022
Green commercial paper programme €20 M - December 2022
Herdade de Rio Frio (1,855 ha)	Intervened forest estates under management (ha)	266
	Planted cork oak trees (no.)	44,535
Green commercial paper programme €35 M - December 2022
Herdade de Rio Frio (3,250 ha)	Intervened forest estates under management (ha)	467
	Planted cork oak trees (no.)	78,025

7.2.2. RENEWABLE, LOW-CARBON, ECO-EFFICIENT AND/OR CIRCULAR ECONOMY ADAPTED PRODUCTS, PRODUCTION TECHNOLOGIES AND PROCESSES

As a 100% natural, renewable, recyclable and reusable product, cork is an excellent alternative for reducing global dependence on non-renewable products and for reducing the carbon footprint of end products. The cyclical extraction of cork, without damaging the trees, ensures that cork oak forests continue to provide numerous environmental, economic and social benefits.

Corticeira Amorim has implemented the eco-efficient products project, which involves different technologies aimed at detecting, reducing and eliminating sensory issues associated with cork, including TCA, and which are applicable to the production of a wide range of cork stoppers, namely: natural cork stoppers, agglomerated cork stoppers, Twin Top Evo cork stoppers, Advantec cork stoppers and two-disc cork stoppers for sparkling wines. Cork with significant sensory deviations is not suitable for cork stopper production and can lead to a decrease in the competitiveness of products and an

increase in the use of oil-derived or metal closures, which entail a more carbon-intensive production process.

The Company has also been developing the circular economy project, which aims to develop new technologies for processing cork not suitable for the cork stopper industry and other industrial by‑ ‑products (industrial symbioses). These technologies aim to produce a wider range of composite cork of/with cork in combinations, thicknesses, densities and widths that have not been used until now. This will make it possible to extend the supply of circular economy products, helping to reduce pollution and reuse materials that would otherwise be waste. Examples: the Amorim Wise Cork Inspire 700 product range, a PVC‑free waterproof flooring solution suitable for all types of spaces, and underlays and underscreeds for application in the construction sector.

Through these projects, the Company endeavours to strengthen resilience and adaptability to climate‑related risks by making low‑ ‑carbon, eco‑efficient and/or circular economy adapted products available to the market, in alignment with SDGs 8, 9, 12 and 13. The performance indicator selected to assess the impact generated was the volume of sales of these products.

		2023	2022	2021
Eligible projects	KPI
Green Bond Framework - December 2020
Green bonds €40 M - December 2020
Eco-efficient products project	Sales of low-carbon, eco-efficient and/or circular economy adapted products (K€)	161,913	160,286	181,111
Circular economy project	Sales of low-carbon, eco-efficient and/or circular economy adapted products (K€)	32,981	41,059	40,220

7.2.3 RENEWABLE ENERGY AND WASTE TO ENERGY

Preventing products and materials from becoming waste for as long as possible and turning unavoidable waste into resources are fundamental actions for achieving a greener and more circular economy. During Corticeira Amorim's production processes, cork powder is generated. This dust, together with other waste from other industries, such as olive stones, almond shells or broken pallets, are important sources of biomass, which are used to produce energy for the production process. This biomass (particularly cork powder) is the main source of energy consumed by industrial units (more than 60%). The renewable energy (biomass) project involves the acquisition of new boilers, the respective restructuring of the network and various interventions on existing boilers, namely in thermal fluid and steam systems, in order to increase capacity, improve the yield of cork powder in energy production and adapt boilers for the use of other biomass sources.

Corticeira Amorim is also committed to increasing the use of energy from renewable sources, both through the selection of energy suppliers according to the proportion of renewable energy in their mix and through direct investment in photovoltaic projects. With an investment in excess of 11 million euros during the 2021-2024 period, the Company aims to install around 24 MWp, using more than 40 thousand solar panels placed on industrial unit roofs. The energy produced will be for self-consumption, representing 20% of the electricity consumed by Corticeira Amorim.

The use of natural gas and renewable electricity helps avoid CO2eq emissions. Therefore, the performance indicator selected to assess the impact generated was: tCO2 avoided by the respective projects.

		2023	2022	2021
Eligible projects	KPI
Green Bond Framework - December 2020
Green bonds €40 M - December 2020
Renewable energy project (biomass)	Avoided GHG emissions (tCO2eq)	6,779	6,111	7,795
Other
Green commercial paper programme €11,6 M – December 2020
Photovoltaic project	Controlled renewable photovoltaic electrical energy (tCO2eq)	4,100	1,164	36

CO2 emissions resulting from the use of biomass (mainly cork powder) as an energy source are considered to be zero because they are renewable sources in which there is reasonable confidence that GHGs will be naturally offset or neutralised.

7.2.4 WASTE MANAGEMENT AND RESOURCE EFFICIENCY

Eliminating waste and pollution, keeping products and materials in use and regenerating natural systems are inspiring principles that drive Corticeira Amorim to constantly innovate in order to improve resource efficiency and minimise waste by reducing, recycling and reusing resources.

To this end, the Company has made a number of investments at different stages of the production process for cork stoppers, flooring, coverings and insulation products, in order to make

better use of raw materials and reduce the amount of waste before it is recycled, used for energy production or landfilled.

This project's initiatives include Recupera, Recork and Recupera Wise, which have enabled, through micronisation, classifications by homogeneous properties and the reuse of cork composite by-products created in the production of flooring.

This endeavour seeks to improve the efficiency of global resources, achieving sustainable management, and is in line with SDG 12. The performance indicator selected to assess the impact was: industrial waste recovered through the project.

		2023	2022	2021
Eligible projects	KPI
Green Bond Framework - December 2020
Green bonds €40 M - December 2020
Project to increase efficiency	Industrial waste recovery (t)	4,577	6,949	8,234

7.2.5 SUSTAINABILITY LINKED

Sustainability linked finance correlates the cost of financing with the Company's performance as regards the fulfilment of pre-defined KPIs.

The Company's performance in 2023 proves its commitment to sustainability. The proposed targets have been met, making a positive impact on the environment and society.

The following table shows the evolution of the KPIs associated with Corticeira Amorim's sustainability linked operations.

			2023	2022	2021
Eligible projects	KPI	Target
Sustainability Linked - August 2021
	Energy consumption from controlled renewable sources as a percentage of total energy consumption (%)	> 66.7%/year	69.8 %	69.3 %	69.2 %
	Proportion of non-cork waste sent for recovery (%)	> 90%/year	91.1 %	95.6 %	96.2 %

Operations in Portugal.

8. CONSOLIDATED SUSTAINABILITY INDICATORS

8.1 ECONOMICS AND VALUE CHAIN

	Unit of measurement	2023	2022	2021
Direct economic value generated and distributed
Economic value generated	K€	996,009	1,034,630	842,171
Operating costs	K€	641,620	690,303	548,884
Employees	K€	189,732	182,950	146,098
Capital providers	K€	52,848	46,715	39,580
State	K€	33,283	23,581	19,729
Communities	K€	598	361	225
Retained economic value	K€	77,927	90,720	87,656
Contributions to local social security schemes	K€	29,155	28,172	22,722
Average investment in R&D+I	K€	11,253	11,075	10,363
Purchases of cork and cork products
Portugal and Spain	K€	404,252	314,171	277,206
North Africa	K€	13,730	15,048	12,782
Other locations	K€	3,094	1,470	1,588
Total purchases of cork and cork products	K€	421,077	330,689	291,577
Forestry Intervention Project
Forest estates under management	ha	8,181	8,181	6,326
Intervened forest estates under management	ha	1,405	381	251
Planted cork oak trees	no.	387,675	154,610	100,400

Accumulated values

Notes:

The values shown in the indicator of direct economic value generated and distributed refer to the total perimeter. Revenues corresponds to the sum of the following items: sales and services provided, supplementary income, operating subsidies, own works, other operating income, financial income and gains and capital gains from real state (after deducting capital losses). Operating costs do not include depreciation. Investment in the community includes only the value of cash donations and does not include contributions and donations in kind.

For the purposes of this report, local origin is considered to be the geographies of Portugal and Spain and controlled origin is considered to be low risk for all five categories of unacceptable sources under the FSC® Controlled Wood System, which also covers cork, i.e. the geographies of Portugal and Spain.

Except when mentioned, all monetary values are stated in thousand euros (thousand euros = K euros = K€) or in million euros (million euros = M euros = M€).

8.2 ENVIRONMENTAL

	Unit of measurement	2023	2022	2021
Energy consumption
Natural gas	GJ	36,387	35,224	44,889
Propane gas	GJ	10,430	12,458	6,163
Gasoline	GJ	410	406	481
Diesel	GJ	36,339	34,488	34,979
Biomass	GJ	1,083,540	1,210,409	1,301,858
Electrical	GJ	483,100	522,886	541,494
Total energy consumption	GJ	1,650,206	1,815,871	1,929,864
Energy intensity	GJ /M€	2,309	2,548	2,862
Renewable energy
Controlled (self-generated)	GJ	1,127,260	1,227,101	1,308,392
Biomass – cork powder	GJ	988,850	1,103,378	1,159,905
Biomass - other	GJ	94,690	107,031	141,953
Photovoltaic	GJ	43,720	12,672	500
Cogeneration	GJ	0	4,019	6,034
Purchased from	GJ	137,878	165,123	207,021
REC	GJ	0	0	0
Grid mix	GJ	137,878	165,123	207,021
Total	GJ	1,265,137	1,392,224	1,515,412
Renewable energy	%	76.7%	76.7%	78.5%
Controlled renewable energy	%	68.3%	67.6%	67.8%
REC – Renewable Energy Certificate.
Electrical energy
Renewable	GJ	181,597	181,815	213,555
Photovoltaic	GJ	43,720	12,672	500
Cogeneration	GJ	0	4,019	6,034
REC	GJ	0	0	0
Grid mix	GJ	137,878	165,123	207,021
Non-renewable	GJ	301,503	341,072	327,940
Grid mix	GJ	301,503	341,072	327,940
Total	GJ	483,100	522,886	541,494
Renewable electrical energy	%	37.6%	34.8%	39.4%
Controlled renewable electrical energy	%	9.0%	3.2%	1.2%

	Unit of measurement	2023	2022	2021
Energy consumption by country
Portugal	GJ	1,568,618	1,717,584	1,826,681
Germany	GJ	1,767	1,767	1,737
Morocco	GJ	5,778	5,753	5,118
Netherlands	GJ	1,314	1,314	1,363
Spain	GJ	48,532	53,407	67,294
Sweden	GJ	4,497	11,289	4,583
Switzerland	GJ	21	21	16
Tunisia	GJ	8,376	10,388	9,941
USA	GJ	11,304	14,349	13,132
Total energy consumption	GJ	1,650,206	1,815,871	1,929,864
Energy efficiency
Number of measures	no.	76	69	91
Investment	K€	772	1,126	1,930
Energy saved	GJ	70,405	49,946	72,625
Energy efficiency	%	4.3%	2.8%	3.8%
Energy consumption
Portugal
Energy consumption	GJ	1,568,618	1,717,584	1,826,681
Controlled renewable energy	%	69.8%	69.3%	69.2%
Controlled renewable electrical energy	%	8.9%	3.4%	1.3%
Energy efficiency	%	4.5%	2.9%	4.0%
GHG emissions (scope 1 and 2)
Direct emissions (scope 1)	tCO2eq	5,719	5,687	5,898
Indirect emissions (scope 2)	tCO2eq	28,209	31,534	38,397
Total GHG emissions (scopes 1 and 2)	tCO2eq	33,928	37,221	44,294
Carbon intensity	tCO2eq /M€	47.5	52.2	65.7
GHG emissions (scope 1)
Natural gas	tCO2eq	2,332	2,258	2,877
Propane gas	tCO2eq	657	785	388
Gasoline	tCO2eq	28	28	33
Diesel	tCO2eq	2,689	2,552	2,588
Biomass	tCO2eq	0	0	0
Other	tCO2eq	13	64	10
Total GHG emissions (scope 1)	tCO2eq	5,719	5,687	5,898
GHG emissions (scope 2)
Market method	tCO2eq	28,209	31,534	38,397
Location method	tCO2eq	57,364	66,087	69,842
Biogenic emissions and stored carbon
Biogenic emissions	tCO2eq	121,357	135,566	145,808
Stored carbon	tCO2eq	471,408	281,663	318,161

	Unit of measurement	2023	2022	2021
GHG emissions (scope 3)
Purchase of goods and services	tCO2eq	112,699	129,885	145,114
Upstream transportation and distribution	tCO2eq	49,016	31,417	22,558
Downstream transportation and distribution	tCO2eq	21,844	42,034	39,834
Employees commuting	tCO2eq	2,403	2,697	3,231
Business travel	tCO2eq	722	344	307
Waste generated in operations	tCO2eq	207	270	288
Total GHG emissions (scope 3)	tCO2eq	186,891	206,646	211,332
Avoided GHG emissions
Biomass	tCO2eq	67,607	77,587	83,449
Photovoltaic	tCO2eq	4,100	1,164	36
Cogeneration	tCO2eq	0	1,016	433
Efficiency measures	tCO2eq	871	1,675	2,193
Total avoided GHG emissions	tCO2eq	72,578	81,442	86,111
GHG by country		Scope 1	Scope 2*	Scope 3
Portugal	tCO2eq	4,363	26,312	179,361
Germany	tCO2eq	88	25	35
Morocco	tCO2eq	72	100	74
Netherlands	tCO2eq	72	12	9
Spain	tCO2eq	348	1,127	3,341
Sweden	tCO2eq	0	289	2,264
Switzerland	tCO2eq	0	1	5
Tunisia	tCO2eq	310	85	504
USA	tCO2eq	467	258	1,298
Total	tCO2eq	5,719	28,209	186,891
*Market method
	Unit of measurement	2023	2022	2021
GHG Emissions
Direct emissions (scope 1)	tCO2eq	5,719	5,687	5,898
Indirect emissions (scope 2) *	tCO2eq	28,209	31,534	38,397
Indirect emissions (scope 3)	tCO2eq	186,891	206,646	211,332
Total GHG emissions	tCO2eq	220,819	243,866	255,627
Carbon intensity	tCO2eq / M€	47.5	52.2	65.7
Avoided emissions	tCO2eq	72,578	81,442	86,111
*Market method Atmospheric emissions
Particles	t	67	85	66
Nitrogen oxide (NOx)	t	142	129	125
Volatile organic compounds (VOCs)	t	45	55	56

	Unit of measurement	2023	2022	2021
Water withdrawal
Groundwater	m3	575,533	580,597	604,289
Public network	m3	53,555	51,107	50,020
Total water withdrawal	m3	629,088	631,704	654,309
Water discharges (effluent)
Discharge with treatment	m3	110,952	115,135	122,125
Discharge to be reused internally	m3	6,690	1,358	0
Other destinations	m3	34,086	37,901	41,706
Total	m3	151,728	154,394	163,831
Water consumption
Water withdrawal	m3	629,088	631,704	654,309
Water discharges (effluent)	m3	151,728	154,394	163,831
Water consumption	m3	477,445	477,470	490,846
Water consumption intensity	m3/M€	668	670	728
Water consumption in high-risk water stress area
Withdrawal	m3	319,596	319,042	209,938
Discharges	m3	76,173	77,439	49,335
Water consumption in high-risk water stress area	m3	243,423	241,762	160,603
Water consumption in high-risk water stress area	%	51.0%	50.6%	32.7%
Water consumption in low-risk water stress area
Withdrawal	m3	309,492	312,662	444,371
Discharges	m3	75,555	76,955	114,496
Water consumption in low-risk water stress area	m3	234,022	241,762	329,875
Water consumption in low-risk water stress area	%	49.0%	49.4%	67.3%
Water consumption
Portugal
Water withdrawal	m3	576,400	577,413	594,284
Water discharges (effluent)	m3	126,840	128,163	132,354
Water consumption	m3	449,645	449,410	462,298
Water consumption intensity	m3/M€	702	698	749

	Unit of measurement	2023	2022	2021
Weight of materials
By source
Renewable virgin	%	88.7%	82.3%	81.9%
Non-renewable virgin	%	7.8%	11.5%	11.8%
Recycled	%	3.6%	6.2%	6.3%
Change in weight of non-renewable virgin materials	%	-32.5%	-2.7%	-10.6%
Weight of materials
Portugal
Renewable virgin	%	86.0%	79.5%	79.3%
Non-renewable virgin	%	9.4%	15.1%	15.3%
Recycled	%	4.6%	4.8%	5.1%
Change in weight of non-renewable virgin materials	%	-37.5%	-1.2%	-5.9%
Recycled cork incorporated into production
Total	t	915	1,052	801
By sales volume	t/M€	1.3	1.5	1.2
Weight of packaging materials
By source
Renewable virgin	%	85.6%	82.7%	86.5%
Non-renewable virgin	%	13.1%	16.1%	13.5%
Recycled	%	1.3%	1.2%	0%
Weight of packaging materials
Portugal
Renewable virgin	%	89.1%	86.2%	89.5%
Non-renewable virgin	%	9.5%	12.5%	10.5%
Recycled	%	1.4%	1.3%	0%

	Unit of measurement	2023	2022	2021
Industrial waste (non-cork)
Recovered	t	10,191	13,070	14,090
Eliminated	t	1,501	1,642	1,060
Total industrial waste	t	11,693	14,712	15,151
Waste recovery rate / Industrial waste recovered	%	87.2%	88.8%	93.0%
Industrial waste by sales volume	t /M€	16.4	20.6	22.5
Hazardous industrial waste
Recovered	t	181	239	210
Eliminated	t	510	240	142
Total hazardous industrial waste	t	691	479	352
Total hazardous industrial waste	%	5.9%	3.3%	2.3%
Non-Hazardous industrial waste
Recovered	t	10,010	12,831	13,880
Eliminated	t	991	1,402	919
Total non-hazardous industrial waste	t	11,002	14,233	14,799
Total non-hazardous industrial waste	%	94.1%	96.7%	97.7%
Industrial waste (non-cork)
Portugal
Recovered	t	9,415	12,653	13,531
Eliminated	t	923	581	532
Total industrial waste	t	10,338	13,233	14,063
Waste recovery rate / Industrial waste recovered in Portugal	%	91.1%	95.6%	96.2%

Notes:

Energy efficiency is measured by the weight of savings obtained from implemented measures in total annual consumption.

When the unit of measurement used is GJ, to convert to MWh, the values should be divided by 3.6.

When the unit of measurement is m3 of water, to convert into megalitres (ML), the values should be divided by 1000.

For classification of water stressed areas within the scope of this report, the Aqueduct Water Risk Atlas tool (wri.org), updated in January 2023, was used.

Water consumption = Water withdrawal - water discharge +/- water storage.

REC - Renewable Energy Certificate.

8.3 SOCIAL

	Unit of measurement	2023	2022	2021
Workers
Workers	no.	3,704	3,829	3,796
By type of contract
Permanent	%	83.6%	78.6%	78.4%
Fixed term	%	10.1%	12.4%	11.5%
Temporary workers	%	6.3%	8.9%	10.1%
By type of employment
Full time	%	99.6%	99.8%	99.6%
Part-time	%	0.4%	0.2%	0.4%
By gender
Women	%	27.1%	26.5%	24.8%
Men	%	72.9%	73.5%	75.2%
By age
<30	%	18.0%	19.9%	15.7%
30-50	%	50.1%	49.4%	54.9%
>50	%	32.0%	30.7%	29.4%
By professional category
Board members	%	0.6%	0.6%	0.6%
Directors	%	2.7%	2.4%	2.4%
Heads of department	%	3.1%	2.6%	2.6%
Sales staff	%	1.9%	2.0%	2.2%
Management support technicians	%	6.6%	6.8%	6.4%
Team leaders	%	4.5%	2.8%	2.4%
Administrative staff	%	7.1%	6.5%	6.3%
Maintenance, quality and logistics technicians	%	11.3%	10.5%	10.4%
Production operators	%	62.2%	65.8%	66.7%
By geography
Portugal	%	87.7%	87.7%	87.2%
Rest of the world	%	12.3%	12.3%	12.8%
Collective bargaining agreements
Portugal	no.	3,022	3,038	2,940
Rest of the world	no.	214	254	260
Total	no.	3,236	3,292	3,200
Portugal	%	100.0%	100.0%	100.0%
Rest of the world	%	47.7%	56.6%	55.1%
Total	%	93.2%	94.4%	93.8%
Associativism
Portugal	no.	411	430	443
Rest of the world	no.	95	122	137
Total	no.	506	552	580
Portugal	%	13.6%	14.2%	15.1%
Rest of the world	%	21.2%	27.2%	29.0%
Total	%	14.6%	15.8%	17.0%

	Unit of measurement	2023	2022	2021
Rate of new hires
Number of hires	no.	518	522	410
By age
<30	%	36.9%	41.8%	35.5%
30-50	%	14.4%	12.8%	10.0%
>50	%	5.5%	4.9%	3.3%
By gender
Women	%	18.5%	19.6%	11.2%
Men	%	13.6%	13.3%	12.3%
By geography
Portugal	%	14.8%	13.8%	10.5%
Rest of the world	%	16.0%	22.9%	21.4%
Rate of new hires	%	14.9%	15.0%	12.0%
Turnover rate
Number of exits	no.	515	426	341
By age
<30	%	29.1%	23.7%	17.2%
30-50	%	12.4%	10.8%	8.5%
>50	%	11.9%	8.6%	8.6%
By gender
Women	%	15.4%	12.3%	11.5%
Men	%	14.6%	12.2%	9.5%
By geography
Portugal	%	14.4%	10.0%	8.4%
Rest of the world	%	18.0%	26.9%	19.9%
Turnover rate	%	14.8%	12.2%	10.0%
Workers with regular performance and career development reviews
By gender
Women	%	87.4%	61.2%	66.5%
Men	%	86.4%	53.7%	65.3%
By employment contract
Employees	%	86.0%	54.2%	62.0%
Temporary workers	%	97.0%	70.5%	97.1%
By geography
Portugal	%	95.0%	60.4%	72.4%
Rest of the world	%	26.7%	21.8%	18.9%

	Unit of measurement			2023	2022	2021
Average hours of training
By employment contract
Employees	h			19	18	15
Temporary workers	h			52	40	38
By gender
Women	h			25	22	21
Men	h			20	19	17
By geography
Portugal	h			23	20	19
Rest of the world	h			7	13	12
By professional category
Board members	h			13	7	6
Directors	h			31	33	28
Heads of department	h			55	58	30
Sales staff	h			38	40	32
Management support technicians	h			37	37	34
Team leaders	h			33	41	34
Administrative staff	h			21	23	14
Maintenance, quality and logistics technicians	h			25	17	19
Production operators	h			16	14	14
Average total hours of training	h			21	20	18
Workers with training
By employment contract
Employees	%			81.4%	84.4%	74.3%
Temporary workers	%			86.3%	89.5%	100%
By gender
Women	%			83.4%	79.4%	79.3%
Men	%			81.1%	86.9%	79.2%
By geography
Portugal	%			87.6%	90.7%	84.8%
Rest of the world	%			39.9%	43.2%	40.9%
Total	%			81.7%	84.9%	79.2%
		Age		Gender		Total
	<30	30-50	>50	Women	Men
Board members		0 2	19	2	19	21
Directors		0 60	40	17	83	100
Heads of department		10 73	32	45	70	115
Sales staff		8 35	29	19	53	72
Management support technicians		96 118	29	118	125	243
Team leaders		17 90	58	30	135	165
Administrative staff		41 123	99	158	105	263
Maintenance, quality and logistics technicians		66 216	138	94	326	420
Production operators	428	1,137	740	519	1,786	2,305
Total 2021	598	2,081	1,117	940	2,856	3,796

Total 2022 761 1,892 1,176 1,013 2,816 3,829 Total 2023 666 1,854 1,184 1,002 2,702 3,704

	Unit of measurement	2023	2022	2021
Composition of the Board of Directors of Corticeira Amorim, S.G.P.S., S.A.
By role
Executive members	no.	4	4	4
Non-executive members	no.	6	6	6
By gender
Women	no.	4	4	4
Men	no.	6	6	6
By age
<30	no.	0	0	0
30-50	no.	1	1	1
>50	no.	9	9	9
By independence
Independent	no.	4	4	4
Non-independent	no.	6	6	6
By nationality
Portuguese	no.	9	9	9
Rest of the world	no.	1	1	1
Total	no.	10	10	10
Management positions
Women	no.	94	82	75
Men	no.	307	239	230
Total	no.	401	321	305
Women	%	23.4%	25.5%	24.6%

		Women		Men
STEM	Total	%	Total	%
STEM positions	38	33.6%	75	66.4%

		2023	2022	2021
Ratio of salary of women to men
By professional category
Directors		0.81	0.70	0.77
Heads of department		1.00	0.93	0.94
Sales staff		0.64	0.61	0.53
Management support technicians		0.84	0.83	0.82
Team leaders		1.25	1.48	1.33
Administrative staff		1.07	1.15	1.13
Maintenance, quality and logistics technicians		0.93	1.00	0.90
Production operators		1.00	0.97	1.02
By geography
Portugal		0.98	0.96	0.98
Rest of the world		1.01	1.05	0.84
Salary ratio between women and men		0.99	0.98	0.96
Ratio of remuneration of women
By professional category
Directors		0.68	0.55	0.68
Heads of department		0.96	0.95	0.92
Sales staff		0.62	0.63	0.54
Management support technicians		0.80	0.77	0.85
Team leaders		1.20	1.35	1.22
Administrative staff		1.03	0.99	1.05
Maintenance, quality and logistics technicians		0.86	0.93	0.73
Production operators		0.92	0.90	0.93
By geography
Portugal		0.89	0.86	0.88
Rest of the world		0.89	0.97	0.82
Ratio of remuneration of women		0.89	0.87	0.88
	Unit of measurement	2023	2022	2021
Gender pay gap
By professional category
Directors	%	32.1%	45.5%	31.6%
Heads of department	%	4.4%	5.5%	8.4%
Sales staff	%	38.1%	33.4%	45.8%
Management support technicians	%	20.2%	23.2%	14.5%
Team leaders	%	-20.0%	-35.0%	-21.9%
Administrative staff	%	-2.7%	-6.7%	-4.8%
Maintenance, quality and logistics technicians	%	14.3%	7.0%	27.6%
Production operators	%	7.8%	10.2%	7.2%
By geography
Portugal		10.9%	14.0%	11.6%
Rest of the world		10.7%	2.7%	18.4%
Total gender pay gap	%	10.9%	12.0%	12.1%

	Unit of measurement	2023	2022	2021
Zero discrimination
Portugal
Women workers	%	27.1%	26.4%	24.4%
Women in management positions	%	24.1%	25.9%	25.0%
Recordable work-related injuries
By employment contract
Employees	no.	57	71	68
Temporary workers	no.	3	20	8
By gender
Women	no.	9	12	10
Men	no.	51	79	66
By geography
Portugal	no.	55	74	54
Rest of the world	no.	5	17	22
Total recordable work-related injuries	no.	60	91	76
Total fatalities as a result of work-related injury	no.	0	0	0
High-consequence work-related injuries
By employment contract
Employees	no.	4	7	2
Temporary workers	no.	0	0	0
By gender
Women	no.	0	0	0
Men	no.	4	7	2
By geography
Portugal	no.	4	7	0
Rest of the world	no.	0	0	2
Total high-consequence work-related injuries	no.	4	7	2
Lost time injury frequency rate (LTIFR)
By employment contract
Employees		9.7	12.4	12.3
Temporary workers		6.1	30.5	13.6
By gender
Women		5.7	7.3	6.9
Men		10.7	16.7	14.1
By geography
Portugal		9.7	13.4	10.0
Rest of the world		7.1	19.7	29.1
Total lost time injury frequency rate		9.5	14.3	12.4
Rate of high-consequence work-related injuries
By employment contract
Employees		0.7	1.2	0.4
Temporary workers		0.0	0.0	0.0
By gender
Women		0.0	0.0	0.0
Men		0.8	1.5	0.4
By geography Portugal		0.7	1.3	0.0
Rest of the world		0.0	0.0	0.0
Total rate of high-consequence work-related injuries		0.6	1.1	0.3

	Unit of measurement	2023	2022	2021
Work-related ill health
By employment contract
Employees	no.	42	70	65
Temporary workers	no.	0	3	0
By gender
Women	no.	16	19	34
Men	no.	26	54	31
By geography
Portugal	no.	40	71	64
Rest of the world	no.	2	2	1
Total work-related ill health	no.	42	73	65
Total fatalities as a result of work-related ill health	no.	0.0	0.0	0.0
Rate of work-related ill health
By employment contract
Employees		7.2	12.3	11.7
Temporary workers		0.0	4.6	0.0
By gender
Women		10.2	11.5	25.0
Men		5.4	11.4	6.6
By geography
Portugal		7.1	12.9	13.0
Rest of the world		0.0	0.0	1.0
Rate of work-related ill health		6.6	11.5	10.6
Lost workday rate
By employment contract
Employees		322	733	555
Temporary workers		130	1,227	545
By gender
Women		222	862	555
Men		335	757	545
By geography
Portugal		306	583	412
Rest of the world		313	2,065	1,561
Total lost workday rate		307	784	554
Absenteeism rate
By employment contract
Employees	%	6.0%	6.3%	5.8%
Temporary workers	%	5.0%	7.4%	4.0%
By gender
Women	%	7.4%	7.2%	6.7%
Men	%	5.4%	6.1%	5.5%
By geography
Portugal	%	6.1%	6.7%	5.1%
Rest of the world	%	4.5%	4.8%	10.2%
Total absenteeism rate	%	5.9%	6.4%	5.8%

Notes:

Turnover rate is calculated considering the number of departing employees in relation to the total number of employees.

Rate of new admissions is calculated considering the number of new employees in relation to the total number of employees.

The procedure for calculating the frequency index and the rate of days lost is in accordance with ILO Code of Practice. The formulae considered are as follows:

• Lost time injury frequency rate = Number of recordable work-related injuries/Number of hours worked x 1,000,000;

• High-consequence work-related injury rate = Number of high-consequence work-related injuries/Hours worked x 1,000,000;

• Lost workday rate (severity index) = Number of days lost/Hours worked x 1,000,000;

• Absenteeism rate = Days of absence / Potential days worked.

When calculating the potential days, public holidays are not taken into account. When calculating the lost time injury frequency rate, only accidents that result in lost days are taken into account. In calculating lost days, the number of working days is taken into account and starts to be counted from the day following that on which the accident occurred until the injured worker returns to work.

STEM - Science, Technology, Engineering and Mathematics.

9. REFERENCES AND SCOPE OF THE REPORT

The aim of this chapter is to provide an understanding of the structure of Corticeira Amorim's Sustainability Report, the writing conventions and fundamental concepts used, as well as the general requirements for preparing and presenting sustainability information in accordance with Directive 2013/34/ EU, as amended by Directive (EU) 2022/2464.

The 2023 Sustainability Report refers to the period from January 1, 2023 to December 31, 2023 and is part of Corticeira Amorim's Consolidated Annual Report 2023.

The previous reporting of sustainability information was approved by the General Meeting of Corticeira Amorim and published on the Company's website in April 2023 and relates to the period from January 1, 2022 to December 31, 2022.

9.1 COMPANIES INCLUDED IN THE CONSOLIDATION OF SUSTAINABILITY INDICATORS

Company	Location	Country	2023	2022
Amorim Florestal BU
Amorim Florestal, S.A.	Vale de Cortiças – Abrantes	PORTUGAL	100%	100%
Amorim Florestal III, S.A.	Ponte de Sor	PORTUGAL	100%	100%
Amorim Florestal España, S.L.	San Vicente Alcántara	SPAIN	100%	100%
Amorim Florestal Mediterrâneo, S.L.	Cádis	SPAIN	100%	100%
Amorim Tunisie, S.A.R.L.	Tabarka	TUNISIA	100%	100%
Comatral – C. de Maroc. de Transf. du Liège, S.A.	Skhirat	MOROCCO	100%	100%
Cosabe – Companhia Silvo-Agrícola da Beira S.A.	Lisboa	PORTUGAL	100%	100%
Société Nouvelle du Liège, S.A. (SNL)	Tabarka	TUNISIA	100%	100%
Société Tunisienne d'Industrie Bouchonnière	Tabarka	TUNISIA	55%	55%
Amorim Cork BU
Amorim Cork, S.G.P.S, S.A.	Santa Maria de Lamas	PORTUGAL	100%	100%
All Closures In, S.A.	Paços de Brandão	PORTUGAL	75%	75%
Amorim Cork, S.A.	Santa Maria de Lamas	PORTUGAL	100%	100%
Amorim Bartop, S.A.	Vergada	PORTUGAL	75%	75%
Amorim Champcork, S.A.	Santa Maria de Lamas	PORTUGAL	100%	100%
Amorim Top Series, S.A.	Vergada	PORTUGAL	75%	75%
Biocape – Importação e Exportação de Cápsulas, Lda.	Mozelos	PORTUGAL	75%	60%
Elfverson & Co. AB	Paryd	SWEDEN	37.5%	37.5%
Francisco Oller, S.A.	Girona	SPAIN	98%	98%
Socori, S.A.	Rio Meão	PORTUGAL	100%	100%
Amorim Cork Flooring BU
Amorim Cork Flooring, S.A.	S. Paio de Oleiros	PORTUGAL	100%	100%
Amorim Benelux, BV	Tholen	NETHERLANDS	100%	100%
Amorim Deutschland, GmbH	Delmenhorts	GERMANY	100%	100%
Amorim Subertech, S.A.	S. Paio de Oleiros	PORTUGAL	-	100%
Amorim Flooring (Switzerland) AG	Zug	SWITZERLAND	100%	100%
Amorim Flooring North America Inc.	Hanover – Maryland	USA	100%	100%
Amorim Cork Composites BU
Amorim Cork Composites, S.A.	Mozelos	PORTUGAL	100%	100%
Amorim Cork Composites, Inc.	Trevor	USA	100%	100%
Amorim Sports, Lda.	Mozelos	PORTUGAL	100%	70%
Corkeen Europe	Mozelos	PORTUGAL	85%	85%
Amorim Cork Insulation BU
Amorim Cork Insulation, S.A.	Vendas Novas	PORTUGAL	100%	100%
Holding and Support Areas
Corticeira Amorim, S.G.P.S., S.A.	Mozelos	PORTUGAL	100%	100%
Amorim Cork Research, Lda.	Mozelos	PORTUGAL	100%	100%
Amorim Cork Services, Lda.	Mozelos	PORTUGAL	100%	100%
Amorim Cork Ventures, Lda.	Mozelos	PORTUGAL	100%	100%

Notes:

Amorim Subertech, S.A.: merged into Amorim Cork Flooring, S.A.

Biocape – Importação e Exportação de Cápsulas, Lda.: increase in percentage of interest.

Amorim Sports, Lda.: increase in percentage of interest.

Corticeira Amorim is a group of companies spread around the world and given the consequent difficulty in implementing uniform information gathering systems in smaller companies, the organisational boundaries of the consolidated sustainability statements (sustainability perimeter) differ from the organisational boundaries of the consolidated financial statements (financial perimeter).

In 2023, there were no changes in the universe of companies that make up the sustainability perimeter, whereas there were changes in the financial perimeter, as noted in Chapter 6 Companies included in the Consolidated Statements of the Notes to the Consolidated Financial Statements.

Unless otherwise indicated, in 2023, the sustainability perimeter indicators represent, compared to the financial perimeter, 72.5% of consolidated sales, 74.7% of workers and 73.7% of PUs.

The environmental indicators of the agroforestry units (Cosabe, Amorim Florestal III and Herdade de Rio Frio) are not consolidated with the information included in this report, and separate information is being provided.

The organisational boundaries considered in the quantitative objectives for 2030 and the quantitative targets of the 2021-2024 plan of the Sustainable by nature programme, are the Portuguese companies that are consolidated within the scope of this report (Portugal perimeter). In terms of the financial perimeter, these companies represent: 65.0% of consolidated sales, 65.6% of employees and 60.5% of PUs.

In the information considered in Chapter 5. Social information/5.2 Community/society and innovation, in particular regarding the distributed economic value, the consolidated figures of the financial perimeter are presented, as well as the information considered in Chapter 4. Environmental information/4.1 European Union Taxonomy.

9.2 STANDARDISATION OF FACTORS AND DEFINITIONS

Except when mentioned, to standardise the environmental indicators, the consolidated sales of the sustainability perimeter were used and for the social indicators the number of workers was used.

Values in euros can be presented in thousand euros (thousand euros = K euros = K€) or in million euros (million euros = M euros = M€).

Workers are considered to be those who have an employment relationship with the Company (also referred to as salaried workers or employees) and self-employed workers who are individual contractors supplying labour to the Company (also referred to as self-employed workers or subcontractors) or people supplied by companies who are mainly engaged in work activities (also referred to as temporary workers).

	Unit of measurement	2023	2022	2021
Consolidated sales
Sustainability perimeter	K€	714,558	712,644	674,402
Financial perimeter	K€	985,467	1,021,391	837,820
Sustainability perimeter	%	72.5%	69.8%	80.5%
	Unit of measurement	2023	2022	2021
Workers
Sustainability perimeter	no.	3,704	3,829	3,796
Financial perimeter	no.	4,958	4,999	4,642
Sustainability perimeter	%	74.7%	76.6%	81.8%

9.3 GHG EMISSIONS

Corticeira Amorim monitors its GHG emissions. To determine the categories to be monitored, as well as the methodologies and assumptions to be applied, Corticeira Amorim regularly carries out an exhaustive corporate GHG inventory, using external experts. The last one was conducted in 2019 by EY, based on information from 2018, covered the activities developed in Portugal and was based on the GHG Protocol methodology (further information in the Sustainability Report 2018, available at https://www.amorim. com/en/sustainability/reports/) and in Chapter 4. Environmental information/4.2 Climate change.

Scope 1 and 2 emissions were calculated in accordance with the GHG Protocol, published by the WBCSD and World Resources Institute (WRI) and ISO 14064-1. Corticeira Amorim reports GHG emissions in CO2eq and takes into consideration emissions from leaks from refrigeration systems and other electrical equipment.

To calculate CO2eq emissions, the conversion factors used in audits under the Intensive Energy Consumption Management System (SGCIE), Order 17313/2008, were considered, as shown in the table below. The emissions associated with the burning of biomass are considered to be neutral, considering that there is reasonable confidence that the CO2eq released (biogenic CO2eq) was stored in the past by the product and is no more than a delayed emission.

The calculation of scope 1 GHG emissions includes fuel consumption in Corticeira Amorim's operations, in particular natural gas, propane gas, diesel, gasoline and biomass.

For scope 2 GHG emissions, Corticeira Amorim considers the electrical energy purchased using the market method and the location method. The energy consumed outside Portugal (6.8%) was assumed to be immaterial. Therefore, the SGCIE reference was taken into account for the location method and the information available at the time of drawing up the report from the energy supplier(s) for the market method. The latter considers a weighted average of the first three quarters of 2023.

For scope 3 emissions, the GHG Protocol's Corporate Value Chain (Scope 3) Accounting and Reporting Standard and was used and had as requirements ISO 14064-1 Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals (2018).

The emission factors considered were based on information published by the GHG Protocol and Defra – Department for Environment, Food & Rural Affairs. When not available, the factors considered in the 2018 GHG emissions inventory carried out by EY in 2019 were used, with reference to "Ecoinvent database 3.5".

The Sustainability Report, including information on Corticeira Amorim's GHG emissions, has been independently reviewed for the limited assurance engagement, carried out in accordance with the International Standard on Assurance Engagements (ISAE 3000, revised) and was conducted by ERNST & YOUNG AUDIT & ASSOCIADOS - SROC, S.A., and the report is available in Chapter 12. Independent assurance report.

Energy conversion factors

		2023
	Unit of measurement	Conversion factors
Natural gas	GJ/1000 m3	37.9
Propane gas	GJ/t	46.7
Diesel	GJ/t	42.8
Gasoline	GJ/t	44.5
Biomass (cork powder)	GJ/t	15.7
Biomass (firewood)	GJ/t	11.6
Electrical energy (own production)	GJ/kWh	0.0036
Electrical energy (supplier - REC)	GJ/kWh	0.0036
Electrical energy (supplier)	GJ/kWh	0.0036

Emission factors

		2023
	Unit of measurement	Emission factors
Natural gas	kg CO2/GJ	64.1
Propane gas	kg CO2/GJ	63.0
Diesel	kg CO2/GJ	74.0
Gasoline	kg CO2/GJ	69.2
Biomass (cork powder)	kg CO2/GJ	0.0
Biomass (firewood)	kg CO2/GJ	0.0
Electrical energy (own production)	kg CO2/ kWh	0.0
Electrical energy (supplier - REC)	kg CO2/ kWh	0.0
Electrical energy (supplier) - market method	kg CO2/ kWh	231.1
Electrical energy (supplier) - location method	kg CO2/ kWh	470.0

Biogenic emissions

In the production of energy from biomass, materials such as cork powder and other forest-based products can be used as an energy source, leading to a reduction in waste generation and indirect energy consumption in industrial processes. Given that, in its business activity, Corticeira Amorim reuses materials generated in its industrial processes for the production of energy through biomass, this process is within the borders analysed. Thus, the biogenic emissions that are generated by the incineration of the aforementioned materials in the biomass boiler for energy production were estimated and reported separately from the results of the GHG emissions inventory (Chapter 8. Consolidated sustainability indicators/8.2 Environmental).

Stored carbon

Corticeira Amorim calculated the GHG removals associated with purchased forest-based materials that store carbon. The materials included in this analysis were only from external suppliers, to avoid double counting of materials, since one business unit may be the supplier of another business unit of Corticeira Amorim (Chapter 8. Consolidated sustainability indicators/8.2 Environmental).

Additional information on the carbon sequestration potential in cork oak forests

Studies

Claims regarding carbon sequestration potential are based on studies carried out by consultants hired by Corticeira Amorim companies, available at https://www.amorim.com/en/sustainability/studies/ (hereinafter "Studies"), relating to specific products and carried out exclusively for Corticeira Amorim, in accordance with the methodology and assumptions indicated therein and in a Cradle‑ ‑to‑Gate or Cradle‑to‑Grave approach, and may not be used in relation to any other company or product. The Studies have not been verified by any regulatory, certifying or similar body outside Corticeira Amorim. The Studies also consider a sensitivity analysis and simulation relating to the carbon sequestration of cork oak forests to provide a broader perspective on the global balance of Greenhouse Gases (GHG). This link is simulated by analysing carbon sequestration scenarios that can be associated with cork products. Cork production is indisputably the main economic activity of an exploited cork oak forest. As such, it can be argued that cork processing companies are a driving force in creating economic incentives for cork oak forest owners to continue cultivating cork oaks. This reflects the spirit of the Product Environmental Footprint Category Rule (PEFCR) for the wine sector, which states that the carbon contained in cork oaks should be included in the analysis as additional environmental information, since their carbon storage exceeds 100 years. The studies therefore considered the carbon sequestration of the cork oak forest associated with cork production.

Conclusions

Thus, the conclusions regarding the estimation of the carbon sequestration potential of the products specifically considered in Corticeira Amorim's Studies (hereinafter "Conclusions") are based on: (i) the sources of emissions and assumptions indicated in the Studies, in the locations and period referred to therein, such as: consumption of raw materials, energy consumption and transport of raw materials, products and by-products; (ii) the carbon sequestration of the cork oak forest, indirectly attributed to Corticeira Amorim's products, considering that its activities contribute to the exploitation of the cork oak forest. If the Company, product and/or these facts, circumstances or hypotheses change, the conclusions will necessarily be different.

Purpose

The Studies and Conclusions are intended to provide non-exhaustive information and conclusions based on the facts, assumptions and methodologies accepted by Corticeira Amorim companies and do not constitute and should not be construed as advice, statements, guarantees or commercial representations as to the quality(s) and/ or ownership(s) of the Product(s). The results and conclusions of the Studies should be considered altogether and not separately. Although Corticeira Amorim believes in the reasonableness of the assumptions, circumstances and methodologies used in the Studies, they are all inherently subject to risks, uncertainties, contingencies and other important factors, known or unknown, which may be difficult or impossible to predict, such as the Company's sales or financial strategy, national and international economic and financial market conditions, technology, legal and regulatory conditions, the evolution of the utilities sector, hydrological and climatic conditions, the cost of raw materials and energy, among others, which may lead to significant differences between the actual results and the claims and conclusions made. Corticeira Amorim cannot be held liable for any direct, indirect or other damages resulting from the use of the Conclusions and/or the associated Studies, either in relation to counterparties or third parties to whom these Conclusions and/ or the associated Studies have been shown or disclosed in any way.

9.4 ADDITIONAL INFORMATION

The 2023 Sustainability Report and other information – including statutes, regulations and policies, report archives, case studies, supported associations, useful links and sustainability contacts – can be found at: www.amorim.com/en/.

On average, a cork oak lives for 200 years, and for every tonne of cork produced, the cork oak forest sequesters up to 73 tonnes of CO 2 .

10. GRI TABLE

Statement of use	Corticeira Amorim reports in accordance with the GRI Standards for the period from January 1, 2023 to December 31, 2023
GRI 1 used	GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)	Not applicable
GRI Standard GRI 2: General Disclosures 2021	Disclosure 2-1 Organizational details	Value/Location 2. Corticeira Amorim	SDG
	2-2 Entities included in the organization's sustainability reporting	9.1 Companies included in the consolidation of sustainability indicators
	2-3 Reporting period, frequency and contact point	9. References and scope of the report
		Corticeira Amorim publishes a Sustainability Report on an annual basis. The 2023 Sustainability Report refers to the period from January 1, 2023 to December 31, 2023 and is integrated in the Consolidated Annual Report of Corticeira Amorim.
		The previous Sustainability Information Report was approved by the General Meeting of Corticeira Amorim and published on the Company's website in April 2023 and relates to the period from January 1, 2022 until December 31, 2022.
		The 2023 Sustainability Report and other information - including statutes, regulations and policies, report archives, case studies, associations we support, useful links and contacts for the sustainability area - can be found at: https://www.amorim.com/en/
	2-4 Restatements of information	In 2023, there were no changes in the universe of companies that make up the boundaries of the consolidation of sustainability indicators. The changes to the consolidation limits of the financial indicators are available in Chapter 6 Companies included in the consolidation in the Notes to the consolidated financial statements.
	2-5 External assurance	The Sustainability Report has an independent limited assurance review, conducted in accordance with the International Standard on Assurance Engagements (ISAE 3000, revised), which was conducted by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A., and the report is available in Chapter 12. Independent assurance report.
	2-6 Activities, value chain and other business relationships	2.4 Characterization of the value chain
	2-7 Employees	5.1.2.1 Characteristics of the own workforce
		8. Consolidated sustainability indicators/8.3 Social
	2-8 Workers who are not employees	5.1.2.1 Characteristics of the own workforce
		8. Consolidated sustainability indicators/8.3 Social
	2-9 Governance structure and composition	1. General disclosures
		2.6 Definition of strategy
	2-10 Nomination and selection	Corporate Governance Report / B. Corporate Boards and committees Corporate Governance Report / B. Corporate Boards and committees
	of the highest governance body
	2-11 Chair of the highest governance body	Corporate Governance Report / B. Corporate Boards and committees
	2-12 Role of the highest governance body in overseeing the management of impacts	1.2 The role of the administrative, management and supervisory bodies
	2-13 Delegation of responsibility for managing impacts	1.2 The role of the administrative, management and supervisory bodies
	2-14 Role of the highest governance body in sustainability reporting	1.2 The role of the administrative, management and supervisory bodies

GRI Standard	Disclosure	Value/Location	SDG
GRI 2: General Disclosures 2021	2-15 Conflicts of interest	Code of Business Ethics and Professional Conduct/ IV.5. Conflict of Interests: https://www.amorim.com/xms/files/Codigo_Etica/Codigo_de_Etica_e_Conduta_ Profissional_EN_Versao3_4_dezembro_2023.pdf
		Anti-corruption Code of Conduct: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_Regulamentos/ Codigo_de_Conduta_Anticorrupcao_EN_lr.pdf
		Regulation on Transactions with Related Parties: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_
		Regulamentos/20210712Regulation_on_transactions_with_related_parties.pdf
		Board of Directors' Regulations/21. Conflict of Interest: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/20220223_Regulamento_do_Conselho_de_Administracao_EN.pdf
		Board of Directors' Executive Committee Regulations/article 12, paragraph 4: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/20220223_Regulamento_da_Comissao_Executiva_EN.pdf
	2-16 Communication	6.1.2.1 Corporate culture and business conduct policies/Reporting of irregularities
	of critical concerns	Irregularities' Internal Reporting Procedure:
		https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/2023.12.4_-__Procedimento_de_Comunicacao_Interna_EN.pdf
		Irregularities' Internal Communication Form:
		https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/2023.12.4_-_Formulario_final_2.pdf
	2-17 Collective knowledge of the highest governance body	1.2 The role of the administrative, management and supervisory bodies
	2-18 Evaluation of the performance of the highest governance body	1.3 Integration of sustainability-related performance in incentive schemes/Performance evaluation of the executive directors
	2-19 Remuneration policies	Remuneration Policy: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_
		Regulamentos/2023-04-28_Politica_de_remuneracoes_EN.pdf
	2-20 Process to determine remuneration	1.3 Integration of sustainability-related performance in incentive schemes
		Remuneration Policy: https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_
		Regulamentos/2023-04-28_Politica_de_remuneracoes_EN.pdf
	2-21 Annual total compensation ratio	Corporate Governance Report/ D – Remuneration:
		a) Ratio of the annual total compensation: 14.2 (2022: 18.4), taking into account the total compensation attributed to the Chairperson of the Board of Directors of Corticeira Amorim and the average compensation of the Organisation (excluding the Chairperson of the Board of Directors of Corticeira Amorim) b) Ratio of the percentage increase in annual total compensation: -22.9%
	2-22 Statement on sustainable development strategy	Message from the Chairman and Message from the Board Member and Chief Sustainability Officer.
	2-23 Policy commitments	Corticeira Amorim is governed by a solid and cohesive set of internal rules, consisting of statutes, regulations and policies, which allow the alignment of its stakeholders' expectations, encourage balanced and prudent management, reinforce transparency and demonstrate the Company's commitments to develop its business activity in line with sustainable development: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation and-policies/
	2-24 Embedding policy commitments	1. General disclosures
		2.6 Definition of strategy

GRI Standard	Disclosure	Value/Location	SDG
GRI 2: General Disclosures 2021	2-25 Processes to remediate negative impacts	The processes are presented throughout the Sustainability Report. Each material topic describes the actions and initiatives developed to manage and remedy the impacts associated with the Company's activity. Since 2009, Corticeira Amorim has carried out a process of consultation and engagement with its stakeholders, seeking to promote their participation and contribution to the definition of the group's sustainability strategy and review of materiality (2.6 Definition of strategy). This procedure has enabled external developments and market expectations to be understood, as well as anticipating new opportunities and risks.
	2-26 Mechanisms for seeking advice and raising concerns	The Company has developed and made available an Irregularities' Internal Reporting Procedure (https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/2023.12.4_-__Procedimento_de_Comunicacao_Interna_EN.pdf), as well as an Irregularities' Internal Communication Form (https://www.amorim.com/xms/files/Investidores/Estatutos_Politicas_ Regulamentos/2023.12.4_-_Formulario_final_2.pdf).
	2-27 Compliance with laws and regulations	There are no significant cases of non-compliance with environmental laws and regulations during the reporting period, in particular no significant fines or non-monetary sanctions were applied. With regard to social issues, three significant cases of non-compliance with laws and regulations were recorded. a) Total number of significant cases of non-compliance with laws and regulations: Environmental: 0 Social: 3 b) Monetary value of fines for cases of non-compliance with laws and regulations Environmental: 0 euros Social: 25.6 thousand euros. All detected non-conformities are monitored and a response and mitigation plan is implemented for future reoccurrences. These actions include detailed investigation of the occurrence, corrective actions to prevent reoccurrence and communication of lessons learned. A "significant" fine or sanction means that it has an individual cost of more than three thousand euros (or equivalent when converted from local currency). Although there is no information at corporate level of any non-compliance at the sustainability perimeter, this information was only confirmed at the Portugal perimeter (9.1 Companies included in the consolidation of sustainability indicators).
	2-28 Membership associations	Voluntary commitments
	2-29 Approach to stakeholder engagement	2.5 Stakeholders
	2-30 Collective bargaining agreements	5.1.2.2 Labour relations and social climate/Collective bargaining coverage and social dialogue
GRI 3: Material Topics 2021	3-1 Process to determine material topics	2.6.2 Materiality matrix
	3-2 List of material topics	2.6.2 Materiality matrix
	3-3 Management of material topics	Throughout this report, relevant impacts on the environment, people, and economy, including Human Rights, are specified for each material topic. Actions taken to manage these impacts and the processes for monitoring them are also described. Stakeholders are involved in defining the Organisation's sustainability strategy and reviewing materiality (2.6 Definition of strategy).
GRI 201: Economic Performance 2016	201-1 Direct economic value generated and distributed	5.2.2.1 Social balance	8, 17
	201-2 Financial implications and other risks and opportunities due to climate change	1.5 Risk management and internal controls over sustainability reporting 4.2 Climate change/4.2.1 Strategy and impact, risk and opportunity management 11. Alignment with the TCFD	8, 9, 13, 17
	201-3 Defined benefit plan obligations and other retirement plans	In all countries where it operates, Corticeira Amorim contributes to local social security schemes, according to the terms of specific applicable legislation, which cover all of its employees. In 2023, the total amount was 29,155 thousand euros (2022: 28,172 thousand euros; 2021: 22,722 thousand euros).	8, 17
GRI 204: Procurement Practices 2016	204-1 Proportion of spending on local suppliers	2.4.1 Supply chain and transport and logistics 6.1.2.2 Management of relationships with suppliers/Procurement and supply of cork 8. Consolidated sustainability indicators/8.1 Economics and value chain	8, 12, 17

GRI Standard	Disclosure	Value/Location	SDG
GRI 207: Tax 2019	207-1 Approach to tax	6.1.2.4 Approach to tax
	207-2 Tax governance, control, and risk management	6.1.2.4 Approach to tax/Governance, control and fiscal risk management
	207-3 Stakeholder engagement and management of concerns related to tax	6.1.2.4 Approach to tax/Engaging stakeholders and managing their tax concerns
GRI 301: Materials 2016	301-1 Materials used	4.6 Circular economy/4.6.2 Metrics and targets/4.6.2.1 Materials
	by weight or volume	8. Consolidated sustainability indicators/8.2 Environmental
	301-2 Recycled input materials used	4.6 Circular economy/4.6.2 Metrics and targets/4.6.2.1 Materials
		8. Consolidated sustainability indicators/8.2 Environmental
	301-3 Reclaimed products and their packaging materials	4.6 Circular economy/4.6.2 Metrics and targets/4.6.2.3 Cork recycling
		8. Consolidated sustainability indicators/8.2 Environmental
GRI 302: Energy 2016	302-1 Energy consumption within the organization	4.2 Climate change/4.2.3 Metrics and targets/ 4.2.3.2 Energy consumption within the organisation	7, 11, 13
		8. Consolidated sustainability indicators/8.2 Environmental
	302-3 Energy intensity	4.2 Climate change/4.2.3 Metrics and targets/	7, 11, 13
		4.2.3.2 Energy consumption within the organisation
		8. Consolidated sustainability indicators/8.2 Environmental
	302-4 Reduction of energy	4.2 Climate change/4.2.3 Metrics and targets/	7, 11, 13
	consumption	4.2.3.2 Energy consumption within the organisation
		8. Consolidated sustainability indicators/8.2 Environmental
	302-5 Reductions in energy	4.7 Green products/4.7.2 Metrics and targets/	7, 11, 9, 13
	requirements of products and services	4.7.2.1 Environmental benefit of the products
		8. Consolidated sustainability indicators/8.2 Environmental
GRI 303: Water and effluents 2018	303-1 Interactions with water as a shared resource	4.4 Water resources/4.4.2 Metrics and targets/4.4.2.1 Water consumption	6
		8. Consolidated sustainability indicators/8.2 Environmental
	303-2 Management of water discharge related impacts	4.4 Water resources/4.4.2 Metrics and targets/4.4.2.1 Water consumption	6
		8. Consolidated sustainability indicators/8.2 Environmental
	303-3 Water withdrawal	4.4 Water resources/4.4.2 Metrics and targets/4.4.2.1 Water consumption	6
		8. Consolidated sustainability indicators/8.2 Environmental
	303-4 Water discharge	4.4 Water resources/4.4.2 Metrics and targets/4.4.2.1 Water consumption	6
		8. Consolidated sustainability indicators/8.2 Environmental
	303-5 Water consumption	4.4 Water resources/4.4.2 Metrics and targets/4.4.2.1 Water consumption	6
		8. Consolidated sustainability indicators/8.2 Environmental
GRI 304: Biodiversity 2016	304-1 Operational sites owned,	4.5 Biodiversity and ecosystems/4.5.3 Metrics and targets	11, 12, 15
	leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	8. Consolidated sustainability indicators/8.2 Environmental
	304-2 Significant impacts of activities, products and services on biodiversity	4.7 Green products/4.7.2 Metrics and targets/ 4.7.2.1 Environmental benefit of the products	11, 12, 15
		8. Consolidated sustainability indicators/8.2 Environmental
	304-3 Habitats protected	4.5 Biodiversity and ecosystems/4.5.3 Metrics and targets
	or restored	8. Consolidated sustainability indicators/8.2 Environmental

GRI Standard	Disclosure	Value/Location	SDG
GRI 305: Emissions 2016	305-1 Direct (Scope 1) GHG emissions	4.2 Climate change/4.2.3 Metrics and targets/4.2.3.3 Direct (scope 1) 7, 11, 13 and indirect (scope 2) GHG emissions
		8. Consolidated sustainability indicators/8.2 Environmental
	305-2 Energy indirect (Scope 2) GHG emissions	4.2 Climate change/4.2.3 Metrics and targets/4.2.3.3 Direct (scope 1) and indirect (scope 2) GHG emissions	7, 11, 13
		8. Consolidated sustainability indicators/8.2 Environmental
	305-3 Other indirect (Scope 3) GHG emissions	4.2 Climate change/4.2.3 Metrics and targets/4.2.3.4 Other indirect (scope 3) GHG emissions	7, 11, 13
		8. Consolidated sustainability indicators/8.2 Environmental
	305-4 GHG emissions intensity	4.2 Climate change/4.2.3 Metrics and targets/4.2.3.3 Direct (scope 1) and indirect (scope 2) GHG emissions	7, 11, 13
		8. Consolidated sustainability indicators/8.2 Environmental
	305-5 Reduction of GHG emissions	4.2 Climate change/4.2.3 Metrics and targets/4.2.3.3 Direct (scope 1) and indirect (scope 2) GHG emissions
		8. Consolidated sustainability indicators/8.2 Environmental
	305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other	4.3 Air quality and pollution/4.3.2 Metrics and targets/4.3.2.1 Pollutant emissions
	significant air emissions	8. Consolidated sustainability indicators/8.2 Environmental
GRI 306: Waste 2020	306-1 Waste generation and significant waste-related impacts	4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.3 Waste
		8. Consolidated sustainability indicators/8.2 Environmental
	306-2 Management of significant waste-related impacts	4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.3 Waste	8, 12
		8. Consolidated sustainability indicators/8.2 Environmental
	306-3 Waste generated	4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.3 Waste
		8. Consolidated sustainability indicators/8.2 Environmental
	306-4 Waste diverted from disposal	4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.3 Waste
		8. Consolidated sustainability indicators/8.2 Environmental
	306-5 Waste directed to disposal	4.6 Circular economy/ 4.6.2 Metrics and targets/4.6.2.3 Waste
		8. Consolidated sustainability indicators/8.2 Environmental
GRI 308: Supplier Environmental Assessment 2016	308-1 New suppliers that were screened using environmental criteria	6.1.2.2 Management of relationships with suppliers
	308-2 Negative environmental	2.4 Characterization of the value chain	8, 12, 17
	impacts in the supply chain and actions taken	6.1.2.2 Management of relationships with suppliers
GRI 401: Employment 2016	401-1 New employee hires	5.1.2.3 Attracting and retaining talent	5, 8
	and employee turnover	8. Consolidated sustainability indicators/8.3 Social
GRI 402: Labor/ Management Relations 2016	402-1 Minimum notice periods regarding operational changes	Regulations with reference to prior notices relating to the workplace (in particular those that should govern any alterations) are complied with by Corticeira Amorim.	8

GRI Standard	Disclosure	Value/Location SDG
GRI 403: Occupational Health and Safety 2018	403-1 Occupational health and safety management system	5.1.2.6 Health and safety metrics
	403-2 Hazard identification, risk assessment, and incident investigation	5.1.2.6 Health and safety metrics/Risk assessment and investigation of incidents	3, 8
	403-3 Occupational health services	5.1.2.6 Health and safety metrics	3, 8
	403-4 Worker participation, consultation, and communication on occupational health and safety	5.1.2.6 Health and safety metrics	3, 8
	403-5 Worker training on occupational health and safety	5.1.2.6 Health and safety metrics	3, 8
	403-6 Promotion of worker health	5.1.2.6 Health and safety metrics	3, 8
	403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	The work carried out in the Corticeira Amorim supply chain takes place in accordance with institutional and legal structures. The working conditions in the Corticeira Amorim's chain of suppliers comply with the labour legislation in force in each geography where the business activity is carried out. Corticeira Amorim has a Code of Ethics and Conduct for Suppliers which favours contracting suppliers that adhere to this Code and may terminate the relationship with suppliers that do not comply with internationally recognised Human Rights and/or allow any violation of these rights within their industrial and/or commercial operations. Also in this regard, Corticeira Amorim has implemented an internal Monitoring Report on Respect for Human Rights with the aim of strengthening its practices and commitments related to the due diligence process within its operations. This programme identifies the main mechanisms and procedures in place to guarantee the protection of Human Rights. Additionally, there are several procedures in place when purchasing materials to ensure the mitigation of potential negative impacts, in particular for purchases of cork, cork products and non-cork (6.1.2.2 Management of relationships with suppliers).	3, 8
	403-8 Workers covered by an occupational health and safety management system	Chapter 2.6.3 Policies adopted to manage material sustainability matters/Management systems	3, 8
		Chapter 5.1.2.6 Health and safety metrics/Certifications/audits/verifications.
	403-9 Work-related injuries	5.1.2.6 Health and safety metrics/Work-related injury or ill health	3, 8
		8. Consolidated sustainability indicators/8.3 Social
	403-10 Work-related ill health	5.1.2.6 Health and safety metrics/Work-related injury or ill health 8. Consolidated sustainability indicators/8.3 Social	3, 8
GRI 404: Training and Education 2016	404-1 Average hours of training per year per employee	5.1.2.5 Training and development/Training and skills development metrics	4, 5, 8
		8. Consolidated sustainability indicators/8.3 Social
	404-2 Programs for upgrading employee skills and transition	5.1.2.3 Attracting and retaining talent
	assistance programs	5.1.2.5 Training and development/Training and skills development metrics
	404-3 Percentage of employees receiving regular performance and career development reviews	5.1.2.5 Training and development/Management by objectives, performance assessment and alignment of incentives	4, 5, 8
		8. Consolidated sustainability indicators/8.3 Social
GRI 405: Diversity and Equal Opportunity 2016	405-1 Diversity of governance 5.1.2.4 Equality and respect for diversity, inclusion and non-discrimination bodies and employees		4, 5, 8
		8. Consolidated sustainability indicators/8.3 Social
	405-2 Ratio of basic salary and remuneration of women to men	5.1.2.8 Compensation metrics 8. Consolidated sustainability indicators/8.3 Social	4, 5, 8
GRI 406: Non-discrimination 2016	406-1 Incidents of discrimination and corrective actions taken	5.1.2.4 Equality and respect for diversity, inclusion and non-discrimination/Commitment not to tolerate any kind of discrimination or harassment
GRI 413: Local Communities 2016	413-1 Operations with local community engagement, impact assessments, and development programs	5.2 Community/society and innovation
GRI 414: Supplier Social Assessment 2016	414-2 Negative social impacts in the supply chain and actions taken	6.1.2.2 Management of relationships with suppliers	8, 12, 17
GRI 415: Public Policy 2016	415-1 Political contributions	6.1.2.5 Political influence and lobbying activities

11. ALIGNMENT WITH THE TCFD

A The Task Force on Climate-Related Financial Disclosures (TCFD) on climate-related financial disclosures recommends a framework for disclosing climate-related risks and opportunities. The table below notes the alignment of Corticeira Amorim's disclosures with the TCFD's recommendations, making reference to where these issues are addressed in the Consolidated Annual Report.

Area	Recommended disclosures	Value/Location
Governance
Disclose the organization´s governance around climate-related risks and opportunities.	a) Describe the board's oversight of climate-related risks and opportunities.	Corporate Governance Report / C - Internal Organisation / III. Internal Control and Risk Management / 50. Individuals, boards or committees responsible for the internal audit and/ or implementation of the internal control systems / 51. Details, even including organisational structure, of hierarchical and/or functional dependency in relation to other boards or committees of the Company / 52. Other functional areas responsible for risk control.
		1. General disclosures/ 1.5 Risk management and internal controls over sustainability reporting
	b) Describe management's role in assessing and managing climate-related risks and opportunities.	Corporate Governance Report / C - Internal Organisation / III. Internal Control and Risk Management /52. Other functional areas responsible for risk control.
		1. General disclosures/ 1.5 Risk management and internal controls over sustainability reporting
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization´s businesses, strategy, and financial planning where such information is material.	a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.	Corporate Governance Report/ C – Internal Organisation/ III. Internal Control and Risk Management / 53. Details and description of the major economic, financial and legal risks to which the Company is exposed in pursuing its business activity/ Climate change.
		4. Environmental information/4.2 Climate change/ 4.2.1 Strategy and impact, risk and opportunity management
	b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning.	Corporate Governance Report/ C – Internal Organisation/ III. Internal Control and Risk Management Consolidated Management Report/ Chapter 2 Operating activities by BU.
	c) Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.	Corticeira Amorim is strengthening the process to identify, describe and quantify climate-related risks and opportunities, as well as the potential financial implications and associated costs of responding to those risks.
Risk management
Disclose how the Organisation identifies, assesses and manages climate-related risks.	a) Describe the organization's processes for identifying and assessing climate-related risks.	Corporate Governance Report/ C - Internal Organisation/ III. Internal Control and Risk Management / 53. Details and description of the major economic, financial and legal risks to which the Company is exposed in pursuing its business activity. 4. Environmental information/4.2 Climate change/
		4.2.1 Strategy and impact, risk and opportunity management
	b) Describe the organization's processes for managing climate related risks.	4. Environmental information/4.2 Climate change/ 4.2.1 Strategy and impact, risk and opportunity management
	c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management.	4. Environmental information/4.2 Climate change/ 4.2.1 Strategy and impact, risk and opportunity management
Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.	a) Disclose the metrics used by the organization to assess climate related risks and opportunities in line with its strategy and risk management process.	4. Environmental information/4.2 Climate change/ 4.2.3 Metrics and targets
	b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.	4. Environmental information/4.2 Climate change/ 4.2.3 Metrics and targets/4.2.3.3 Direct (scope 1) and indirect (scope 2) GHG emissions
		4. Environmental information/4.2 Climate change/ 4.2.3 Metrics and targets/4.2.3.4 Other indirect (scope 3) GHG emissions
	c) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.	3. Sustainable by nature programme/ Quantitative targets for 2030 and progress

The cork oak forests are located in the Mediterranean basin, one of the world's 36 biodiversity hotspots.

12. INDEPENDENT ASSURANCE REPORT

-

-

The cork oak forest stands at the heart of everything we do. It is one of the world's most biodiverse ecosystems that is crucial for carbon storage, combating climate change, forest fire prevention, hydrological regulation and soil protection.

06

Consolidated Financial Statements

Consolidated statement of financial position

	Notes	December 31, 2023	December 31, 2022
Assets
Tangible assets	8	438,297	392,588
Intangible assets	9	18,018	21,987
Right of use	11	5,046	4,564
Goodwill	9	23,872	18,874
Biological assets	10	4,952	913
Investment property	12	2,241	3,966
Investments in associates and joint ventures	13	32,630	32,083
Other financial assets	14	2,097	1,945
Deferred tax assets	15	20,203	13,235
Other debtors	18	1,895	2,509
Non-current assets		549,251	492,666
Inventories	16	516,497	405,229
Biological assets	10	1,391	0
Trade receivables	17	203,080	207,792
Income tax assets	15	7,951	12,370
Non-current assets held for sale		0	298
Other debtors	14	41,726	41,973
Other current assets	18	21,937	24,121
Cash and cash equivalents	19	73,394	84,867
Current assets		865,974	776,650
Total Assets		1,415,225	1,269,316
Equity
Share capital	20	133,000	133,000
Other reserves	20	488,311	434,192
Net Income		88,897	98,395
Non-Controlling Interest	21	89,835	79,339
Total Equity		800,044	744,926
Liabilities
Interest-bearing debt	22	101,793	104,869
Other financial liabilities	24	8,300	11,899
Provisions	25	7,942	4,473
Post-employment benefits	26	3,228	2,603
Deferred tax liabilities	15	42,715	44,014
Non-current liabilities		163,979	167,857
Interest-bearing debt	22	212,440	108,986
Trade payables	23	159,000	170,549
Other financial liabilities	24	51,497	46,871
Other liabilities	24	24,320	23,466
Income tax liabilities	15	3,946	6,661
Current liabilities		451,203	356,533
Total Liabilities and Equity		1,415,225	1,269,316

(this statement should be read with the attached notes to the consolidated financial statements)

Values in thousand euros.

Consolidated income statement by nature

4Q23 (non audited)	4Q22 (non audited)		Notes	2023	2022
222,248	231,093	Sales	7	985,467	1,021,391
−95,590	−128,643	Costs of goods sold and materials consumed		−485,063	−512,131
−11,584	8,906	Change in manufactured inventories		7,229	14,506
−38,532	−43,014	Third party supplies and services	27	−151,167	−186,475
−44,616	−43,469	Staff costs	28	−189,732	−182,950
476	−38	Impairments of assets	29	−1,186	−157
5,794	7,353	Other income and gains	30	20,088	20,936
−995	607	Other costs and losses	30	−8,651	−11,166
37,200	32,795	Operating profit before depreciation and non-recurrent		176,985	163,954
−13,856	−12,288	Depreciation	8, 9, 10, 11,12	−51,915	−48,640
23,345	20,507	Operating profit		125,070	115,315
782	−2,951	Non-recurrent results	31	782	−804
−3,439	−1,401	Financial costs	32	−9,319	−3,375
511	334	Financial income	32	1,494	590
−956	3,403	Share of (loss)/profit of associates and joint-ventures	13	3,011	4,846
20,243	19,892	Profit before tax		121,039	116,571
4,483	17,457	Income tax	15	−20,903	−5,939
24,725	37,349	Profit after tax		100,136	110,632
2,839	3,114	Non-controlling interests	21	11,239	12,238
21,886	34,235	Net Income attributable to the equity holders of Corticeira Amorim		88,897	98,395
0.165	0.257	Earnings per share - Basic (euros per share)		0.668	0.740
0.165	0.257	Earnings per share - Diluted (euros per share)		0.668	0.740

(this statement should be read with the attached notes to the consolidated financial statements)

Values in thousand euros.

Consolidated statement of comprehensive income

4Q23 (non audited)	4Q22 (non audited)		Notes	2023	2022
24,725	37,349	Net Income		100,136	110,632
		Items that may be reclassified through income statement:
979	2,584	Change in derivative financial instruments fair value	15	−549	732
3,304	2,552	Change in translation differences and other	15	−3,579	2,148
−268	−898	Share of other comprehensive income of investments accounted for using the equity method	15	−510	1,238
−857	525	Other comprehensive income	15	−286	246
3,158	4,763	Other comprehensive income (net of tax)		−4,924	4,363
27,883	42,112	Total Net comprehensive income		95,213	114,995
		Attributable to:
26,042	38,999	Corticeira Amorim Shareholders		85,605	102,484
1,840	3,113	Non-controlling interests		9,608	12,511

Values in thousand euros.

(this statement should be read with the attached notes to the consolidated financial statements)

(items in this Statement above are presented net of tax. The income tax relating to each component of other comprehensive income is disclosed in note 15)

Consolidated statement of cash flow

4Q23 (non audited)	4Q22 (non audited)		Notes	2023	2022
		OPERATING ACTIVITIES
252,125	267,599	Collections from customers		1,046,035	1,083,661
−208,091	−214,625	Payments to suppliers		−898,194	−881,993
−44,205	−42,298	Payments to employees		−177,020	−173,044
−171	10,677	Operational cash flow		−29,179	28,625
−9,159	3,587	Payments/collections - income tax		−27,138	−13,148
18,475	9,567	Other collections/payments related with operational activities		82,614	77,407
9,145	23,831	CASH FLOW FROM OPERATING ACTIVITIES		26,296	92,884
		INVESTING ACTIVITIES
		Collections due to:
2,573	−10,368	Tangible assets		4,540	2,654
88	46	Intangible assets		88	292
0	72	Financial investments		0	137
0	0	Other financial assets		1,841	0
7,000	0	Investment properties		7,000	4,750
0	284	Other assets		0	1,007
899	391	Interest and similar gains		2,080	549
250	175	Dividends		1,842	1,172
		Payments due to:
−29,952	−23,360	Tangible assets		−92,651	−93,342
−5,981	18,851	Acquisition of Subsidiaries (net of cash and cash equivalents)	6	−6,081	−44,771
−400	−333	Intangible assets		−2,500	−3,760
0	0	Other assets		0	−330
−25,523	−14,243	CASH FLOW FROM INVESTING ACTIVITIES		−83,841	−131,643
		FINANCING ACTIVITIES
		Collections due to:
21,238	32,241	Loans		129,241	71,728
1,026	2,391	Government grants		1,943	4,227
−185	−11,190	Transactions with non-controlling interests 0			7,168
288	736	Others		2,642	3,191
		Payments due to:
−4,950	−21,000	Loans		−66,200	−21,000
−3,533	−1,202	Interest and similar expenses		−8,445	−2,486
−805	−2,030	Leasing		−1,723	−2,875
0	0	Transactions with non-controlling interests	21	0	−5,000
−11,970	−11,970	Dividends paid to company's shareholders	20	−38,570	−38,570
−2,328	−444	Dividends paid to non-controlling interests	21	−5,493	−5,499
−1,031	−946	Government grants		−3,220	−2,681
−210	−282	Others		−823	−1,129
−2,460	−13,696	CASH FLOW FROM FINANCING ACTIVITIES		9,353	7,074
−18,838	−4,108	Change in cash and cash equivalents		−48,192	−31,685
159	−402	Exchange rate effect		−17	−34
5,810	39,851	Cash and cash equivalents at beginning of period	19	35,341	67,060
−12,869	35,341	Cash and cash equivalents at end of period	19	−12,869	35,341

(this statement should be read with the attached notes to the consolidated financial statements)

Values in thousand euros.

Consolidated Statement of Changes in Equity

Attributable to owners of Corticeira Amorim, SGPS, S.A.
	Notes	Share capital	Paid-in capital	Hedge accounting	Translation difference	Legal reserve	Other reserves	Net income	Non controlling interests	Total Equity
Balance sheet as at January 1, 2022		133,000	38,893	−109	−7,253	26,600	330,058	74,756	27,336	623,283
Profit for the year	20	-	-	-	-	0	74,755	−74,755	-	0
Dividends	20	-	-	-	-	-	−38,570	-	−5,499	−44,069
Perimeter variation	21	-	-	-	-	-	−406	-	45,815	45,409
Changes in the percentage of interest retaining control	21	-	-	-	-	-	6,132	-	−824	5,308
Consolidated Net Income for the period	20 and 21	-	-	-	-	-	-	98,395	12,238	110,632
Change in derivative financial instruments fair value	3	-	-	732	-	-	-	-	-	732
Change in exchange differences	20 and 21	-	-	-	1,872	-	-	-	276	2,148
Other comprehensive income of associates	13	-	-	-	1,195	-	43	-	-	1,238
Other comprehensive income		-	-	-	-	-	248	-	−2	246
Total comprehensive income for the period		0	0	732	3,067	0	291	98,395	12,511	114,995
Balance sheet as at December 31, 2022		133,000	38,893	623	−4,185	26,600	372,260	98,395	79,339	744,926
Balance sheet as at January 1, 2023		133,000	38,893	623	−4,185	26,600	372,260	98,395	79,339	744,926
Profit for the year	20	-	-	-	-	0	98,395	−98,395	-	0
Dividends	20	-	-	-	-	-	−38,570	-	−5,493	−44,063
Perimeter variation	21	-	-	-	-	-	55	-	5,151	5,206
Changes in the percentage of interest retaining control	21	-	-	-	-	-	−2,468	-	1,230	−1,238
Consolidated Net Income for the period	20 and 21	-	-	-	-	-	-	88,897	11,239	100,136
Change in derivative financial instruments fair value	3	-	-	−549	-	-	-	-	-	−549
Change in exchange differences	20 and 21	-	-	-	−1,983	-	-	-	−1,596	−3,579
Other comprehensive income of associates	13	-	-	-	−510	-	-	-	-	−510
Other comprehensive income		-	-	-	-	-	−251	-	−35	−286
Total comprehensive income for the period		0	0	−549	−2,493	0	−251	88,897	9,608	95,213
Balance sheet as at December 31, 2023		133,000	38,893	74	−6,677	26,600	429,421	88,898	89,835	800,044

(this statement should be read with the attached notes to the consolidated financial statements)

Values in thousand euros.

Innovation enables us to advance the technical superiority of cork, which is sustainable by nature. With Xpür® ‑ the world's most ecological and efficient anti‑TCA technology for micro granulated stoppers ‑ cork is making progress, as is the wine industry.

Notes to the Consolidated Financial Statements

1. INTRODUCTION

At the beginning of 1991, Corticeira Amorim, S.G.P.S., S.A. was transformed into Corticeira Amorim, S.G.P.S., S.A., the holding company for the cork business sector of the Amorim Group. In this report, Corticeira Amorim will be the designation of Corticeira Amorim, S.G.P.S., S.A., and in some cases the designation of Corticeira Amorim, S.G.P.S. together with all of its subsidiaries.

Corticeira Amorim is mainly engaged in the acquisition and transformation of cork into a numerous set of cork and cork-related products, which are distributed worldwide through its network of sales companies.

Corticeira Amorim is a Portuguese company with its registered office in rua Comendador Américo Ferreira de Amorim, 380 in Mozelos, Santa Maria da Feira (Portugal). Its share capital amounts to 133 million euros, and its shares are publicly traded in Euronext Lisbon – Sociedade Gestora de Mercados Regulamentados, S.A.

Amorim – Investimentos e Participações, S.G.P.S, S.A. held, as of December 31, 2022 and December 31, 2023, 67,830,000 shares of Corticeira Amorim, corresponding to 51.00% of the share capital. Corticeira Amorim is included in the consolidation perimeter of Amorim – Investimentos e Participações, S.G.P.S, S.A., which is its controlling and parent company. Amorim – Investimentos e Participações, S.G.P.S., S.A. is 100% owned by the Amorim family.

These financial statements were approved in the Board Meeting of March 25, 2024. Shareholders have the capacity to modify these financial statements even after their release.

Except when mentioned, all monetary values are stated in thousand euros (Thousand euros = K euros = K€).

2. SUMMARY OF ACCOUNTING POLICIES

The accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented.

A. BASIS OF PREPARATION

Pursuant to Decree-Law No. 35/2005, dated 17 February, as subsequently amended by Decree-Law No. 98/2015 of 2 July, which transposed into Portuguese legislation the provisions of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, these consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IAS/IFRS) issued by the International Accounting Standards Board (IASB) and the Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC), adopted by the EU, effective as of 1 January 2023. Consolidated statements were prepared based on a going concern basis, based on historical cost, except in the case for financial instruments measured at fair value in accordance with IFRS 9. The financial statements are prepared using the records as stated in the companies' books included in the consolidation which adopted local general accepted accounting principles. Accounting adjustments were made in order to comply with the International Financial Reporting Standards (IFRS) as adopted in the European Union for periods beginning on January 1, 2023.

Changes in accounting policies and disclosures

The standards (new and amended) that became effective for the annual periods that started on January 1, 2023 are as follows:

• IAS 1 (amendment), 'Disclosure of accounting policies'. Amendment to the requirement to disclose the accounting policies based on "material" instead of "significant". The amendment specifies that an accounting policy information is expected to be material if, in its absence, the users of the financial statements would be unable to understand other material information in those same financial statements. Immaterial accounting policy information need not be disclosed. The IFRS Practice Statement 2 was also amended to provide guidance for the application of the concept of "material" to accounting policy disclosures.
• IAS 8 (amendment), 'Disclosure of accounting estimates". This amendment introduces the definition of accounting estimate and the way it is distinct from changes to accounting policies. The accounting estimates are defined as corresponding to monetary amounts that are subject to measurement uncertainty, used to achieve an accounting policy's objective(s).
• IFRS 17 (new and amendment), 'Insurance contracts'. This new standard replaces IFRS 4 and applies to all entities issuing insurance contracts, reinsurance contracts or investment contracts with discretionary participation in profit or loss if the entity issues insurance contracts. Under IFRS 17, insurers need to assess if a policy holder can benefit from a particular service as part of a claim or if the service is independent of the claim/risk event and do the unbundling of the non-insurance component. Under IFRS 17, the entities will need to identify portfolios of insurance contracts at initial recognition and divide them into a minimum of the following groups: (i) contracts that are onerous at inception; (ii) contracts that have no significant possibility of becoming onerous subsequently; and (iii) remaining contracts in the portfolio. IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. IFRS 17 requires a company to recognise profits as it delivers insurance services (rather than when it receives premiums), and to provide information about insurance contract profits the company expects to recognise in the future. IFRS 17 provides three measurement approaches for the accounting of different types of insurance contracts: (i) General Measurement Model (GMM); (ii) the Premium Allocation Approach (PAA), and (iii) the Variable Fee Approach (VFA). IFRS 17 is applied retrospectively with some exemptions as at the transition date.
• IFRS 17 (amendment), 'Initial Application of IFRS 17 and IFRS 9 – Comparative Information'. This amendment relates only to insurers' transitioning to IFRS 17 and allows the adoption of a classification overlay to a financial asset for which the entity does not restate IFRS 9 comparative information. This amendment seeks to avoid temporary accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented, when applying IFRS 17 for the first time, providing for (i) the application on a financial asset-by-financial asset basis; (ii) the presentation of comparative information as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset, but without requiring an entity to apply the impairment requirements of IFRS 9; and (iii) the obligation to use reasonable and supported information available at the transition date, to determine how the entity expects that financial asset to be classified in accordance with IFRS 9.
• IAS 12 (amendment), 'Deferred tax related to assets and liabilities arising from a single transaction'. IAS 12 will require entities to recognise deferred tax on specific transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. This applies to the recognition of (i) right-of-use assets and lease liabilities; and (ii) decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related asset, when not relevant for tax purposes. These temporary differences are excluded from the scope of the exemption from recording deferred taxes upon initial recognition of assets or liabilities. This amendment is applied retrospectively.

• IAS 12 (amendment), 'International tax reform – Pillar two model rules'. Following the implementation of the OECD's Global Anti-Base Erosion ("GloBE") rules, there may be significant impacts on the calculation of deferred taxes of the entities impacted which, at this date, are difficult to estimate. This amendment to IAS 12 introduces: (i) a temporary exception to the requirements to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes; and (ii) targeted disclosure requirements for affected entities (entities belonging to multinational groups that have consolidated revenues of 750M€ in at least two out of the last four years), such as: the fact that the exception was applied, the current tax expense related to Pillar Two rules, and the reasonable estimate of the impact of Pilar Two rules between the date the legislation becomes enacted and the date it becomes effective.

These standards and amendments had no material impact on Corticeira Amorim's consolidated financial statements. The disclosure requirements arising from the amendment to IAS 12 'International taxation reform – Pillar Two model rules' were included in note 15.

The published standards rules (new and amended), which are mandatory for annual periods beginning on or after 1 January 2024, already endorsed by the European Union are as follows:

• IAS 1 (amendment), 'Classification of liabilities as non-current and current' and 'Non-current liabilities with covenants' (effective for annual periods beginning on or after 1 January 2024). This amendment is still subject to endorsement by the European Union. These amendments clarify that liabilities are classified as either current or non-current balances depending on the rights that an entity has to defer its settlement for at least 12 months after the reporting date. They clarify also that the covenants that an entity is required to comply with, on or before the reporting date, affect the classification of a liability as current or non-current, even if the covenants are only assessed after the entity's reporting date. When an entity classifies liabilities arising from loan arrangements as non-current and those liabilities are subject to covenants, it is required to disclose information that enables investors to assess the risk that the liabilities could become repayable within 12 months, such as: (a) the carrying amount of the liabilities; (b) the nature of the covenants and the compliance dates; and (c) the facts and circumstances that indicate that the entity may have difficulty complying with covenants when it is required to do so. These amendments are applied retrospectively.
• IFRS 16 (amendment), 'Lease liability in a sale and leaseback' (effective for annual periods beginning on or after 1 January 2024). This amendment is still subject to endorsement by the European Union. The amendment introduces guidance for the subsequent measurement of lease liabilities, in the scope of sale and leaseback transactions that qualify as "sales" under IFRS 15, with higher impact when some or all the lease payments are variable lease payments that do not depend on an index or rate. Whilst subsequently measuring lease liabilities, seller-lessees determine "lease payments" and "revised lease payments" in a way that does not result in the seller-lessees recognizing any gains/(losses) relating with the right of use that they retain. This amendment is applied retrospectively.

Corticeira Amorim did not apply any of these standards in advance in the financial statements for the year ended December 31, 2023. No material impacts are estimated on the consolidated financial statements of Corticeira Amorim from the application of these standards and amendments.

The published standards (new and amended), which are mandatory for annual periods beginning on or after 1 January 2024, but which the European Union has not yet endorsed, are as follows:

• IAS 7 (amendment) and IFRS 7 (amendment), 'Supplier finance arrangements' (effective for annual periods beginning on or after 1 January 2024). These amendments are still subject to endorsement by the European Union. These amendments require an entity to provide additional disclosures about its supplier finance arrangements to enable: (i) the assessment of how supplier finance arrangements affect an entity's liabilities and cash flows; and (ii) the understanding of the effect of supplier finance arrangements on an entity's exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available. The additional requirements complement presentation and disclosure requirements already in IFRS as set out in the IFRS IC's Agenda decision of December 2020.
• IAS 21 (amendment), 'The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability' (effective for annual periods beginning on or after 1 January 2025). This amendment is still subject to endorsement by the European Union. This amendment adds requirements for determining whether a currency can be exchanged for another currency (exchangeability) and defining how to determine the spot exchange rate to be used when it is not possible to exchange a currency for a long period of time. This change also requires the disclosure of information that allows understanding how the currency that cannot be exchanged for another currency affects, or is expected to affect, the financial performance, financial position and cash flows of the entity, in addition to the spot exchange rate used on the reporting date and how it was determined.

Corticeira Amorim is evaluating the impact resulting from these changes and will apply these standards in the year in which they become effective, or in advance when permitted.

B. CONSOLIDATION

• Group companies

The consolidated financial statements include, in reference to 31 December 2023, assets, liabilities, profit and loss of the companies in the Group, understood as the entirety of Corticeira Amorim and its subsidiaries, which are presented in Note 6.

An entity is classified as a subsidiary when it is controlled by the Group. Control exists only where the Group has, cumulatively:

• a. Power over the investee;
• b. Exposure to or rights over variable results derived from its relationship with the investee; and
• c. The ability to use its power over the investee to affect the amount of the results for investors.

Generally, it is assumed that there is control when the Group holds the majority of voting rights. In order to support this assumption and in cases where the Group does not hold the majority of voting rights in the investee, all relevant facts and circumstances are considered when determining the existence of power and control, such as:

• a. Any contractual agreements with other holders of voting rights;
• b. Any rights arising from other contractual agreements;
• c. Existing and potential voting rights.

The existence of control by the Group is re-evaluated whenever there is a change in any facts and circumstances that lead to changes in one of the three factors of control mentioned above.

Subsidiaries are included in the consolidation according to the full consolidation method, from the date when control is acquired until the date it effectively ends.

Intergroup balances and transactions, as well as any unrealized gains on transactions between companies in the Group, are eliminated. Unrealized losses are also eliminated, unless the transaction demonstrates impairment of a transferred asset.

The accounting policies of subsidiaries are changed whenever necessary to ensure consistency with the policies adopted by the Group.

A change in the participating interest in a subsidiary that does not entail loss of control is recorded as a transaction between shareholders. If the Group loses control over the subsidiary, the corresponding assets (including goodwill), liabilities, non-controlling interests and other equity components are derecognised and any gains or losses are recognised in the income statement. Investments retained are recognised at fair value at the time of the loss of control.

In situations where the Group has substantial control of entities created for a specific purpose, even if it has no direct shareholdings in these entities, they shall be consolidated using the full consolidation method.

The proportion of net assets of subsidiaries consolidated using the full method, which are not held by the Group, are recorded in the consolidated statement of financial position under the heading non-controlling interests.

Interests over the net income of subsidiaries, that are not attributable to the Group are identified and adjusted by deduction from the equity attributable to the Group shareholders and recorded in the consolidated income statement, in the line-item non-controlling interest.

• Financial holdings in associates and joint ventures

Associates are companies over which Corticeira Amorim exercises significant influence, understood as the power to participate in the financial and operating policy-making process, without, however, exercising control or joint control. Generally, it is assumed that there is a significant influence whenever the holding percentage exceeds 20%.

The classification of financial investments in joint ventures is determined based on the existence of shareholders' agreements that demonstrate and regulate joint control, which is understood to exist when decisions on activities relevant to the venture require a unanimous agreement between the parties.

The existence of significant influence or joint control is determined based on the same type of facts and circumstances applicable in the assessment of control over subsidiaries.

These holdings are consolidated by the equity method, this is, the consolidated financial statements include the Group's interest in the total recognised gains and losses of the associate/joint venture, from the date on which significant influence/control begins until the date on which it effectively ends. Dividends received from these companies are recorded as a reduction in the value of financial investments.

The Group's share of gains and losses in associates/joint ventures is recognised in the income statement, and its share of operations in post-acquisition reserves are recognised in reserves. The cumulative post-acquisition operations are adjusted according to the cumulative operations in the financial investment. When the Group's share of losses in an associate/joint venture equals or exceeds its investment in that entity, including any unsecured receipt transaction, the Group does not recognise any further losses, unless it has incurred obligations or made payments on behalf of the associate/joint venture.

Any excess of the cost of acquisition of a financial investment over the Group's share in the fair value of the assets, liabilities and contingent liabilities identified on the date of acquisition of the associate/joint venture is recognised as goodwill, which is included in the value of the financial holding and whose recovery is assessed annually as part of the financial investment. If the cost of acquisition is lower than the fair value of the net amount of the assets of the associate/ joint venture, the difference is recorded directly in the consolidated income statement.

Unrealized gains from transactions between the Group and its associates/joint ventures are eliminated to the extent of the Group's share in the respective associates/joint ventures. Unrealized losses are also eliminated, unless the transaction demonstrates impairment of a transferred asset.

The accounting policies of associates/joint ventures are changed whenever necessary to ensure consistency with the policies adopted by the Group.

Following the application of the equity method, the Group assesses the existence of impairment indicators; should they exist, the Group calculates the recoverable amount of the investment and recognises an impairment loss if the recoverable amount is lower than the carrying amount of the investment, in the line item "Gains/losses in associates and joint ventures" of the income statement.

After the loss of significant influence or joint control (without maintenance of significant influence), the Group initially recognises the retained investment at fair value, and the difference between the carrying value and the fair value held plus the revenue from the sale, are recognised in the income statement.

• Exchange rate effect

Euro is the currency of the country where Corticeira Amorim, S.G.P.S., S.A. has its registered office, and is the currency in which two thirds of its business is made and so Euro is considered to be its functional and presentation currency.

In euro subsidiaries, all assets and liabilities denominated in foreign currency are translated to euros using year-end exchange rates. Net exchange rate differences arising from the different rates used in transactions and the rate used in its settlements or balance sheet dates are recorded in the income statement. These differences are recognised in operating results because they are not financially significant.

Assets and liabilities from non-euro subsidiaries are translated at the balance sheet date exchange rate, being its costs and gains from the income statement translated at the average exchange rate for the period.

Exchange rate differences of this conversion are registered in an equity account "Exchange rate differences" which is part of the line "Other reserves".

Whenever and a non-euro subsidiary is sold or liquidated, accumulated exchange rate conversion differences recorded in equity is registered as a gain or a loss in the consolidated income statement by nature.

Inflationary effects are recognised in the financial statements when the economy of the currency in which the Entity's transactions are recorded is considered hyperinflationary. Since 2020 Argentina is considered a hyperinflationary economy, so the subsidiary located in this country recognised the accumulated inflation adjustments.

• Business combinations and goodwill

The acquisition method is the method used to recognise the entry of subsidiaries in Corticeira Amorim upon their acquisition.

In the acquisition method, the difference between: (i) the consideration transferred along with the non-controlling interests and the fair value of the equity interests previously held, and (ii) the net amount of identifiable assets acquired and liabilities assumed, is recognised, on the date of acquisition, as goodwill, if positive, or as a gain, if negative.

The consideration transferred is measured at fair value, calculated as the aggregate amount of fair values, on the date of acquisition, of assets transferred, liabilities incurred and equity instruments issued by Corticeira Amorim. For the purpose of determining goodwill/ gains resulting from the combination, the transferred consideration is removed from any part of the consideration that concerns another transaction (e.g. remuneration for the provision of future services or settlement of pre-existing relationships) whose margin is recognised separately in profit or loss.

The transferred consideration includes the fair value, on the date of acquisition, of any contingent consideration. Subsequent changes in this value are recognised: (i) as equity if the contingent consideration is classified as equity, (ii) as an expense or income in profit or loss or as other comprehensive income if the contingent consideration is classified as a financial asset or liability and (iii) as expenses, according to IAS 37 or other applicable standards, in remaining cases.

Expenses related to the acquisition are not part of the transferred consideration, so they do not affect the determination of goodwill/ gains resulting from the acquisition and are recognised as expenses in the year they occur.

On the date of acquisition, the classification and designation of all assets acquired and liabilities transferred are reassessed in accordance with IFRS.

Assets arising from contractual indemnities paid by the seller concerning the outcome of contingencies related, in whole or in part, to a specific liability of the combined entity, shall be recognised and measured using the same principles and assumptions of the related liabilities.

The determination of the fair value of assets acquired and liabilities assumed considers the fair value of contingent liabilities arising from a present obligation caused by a past event (if the fair value can be reliably measured), regardless of whether an outflow is expected or not. In a business combination achieved in stages, the acquirer must remeasure its equity interest previously held in the acquiree at its fair value at the acquisition date and must recognize the resulting gain or loss, if applicable, in profit or loss or in other full income, as appropriate. In prior reporting periods, the acquirer may have recognised changes in the value of its equity interest in the acquiree in other comprehensive income. If it does so, the amount that was recognised in other comprehensive income must be recognised on the same basis as it would have been recognised if the acquirer had directly disposed of the previously held equity interest.

For each acquisition, Corticeira Amorim can choose to measure "non-controlling interests" at their fair value or by their respective share in the fair value in the assets and liabilities transferred from the acquiree. The choice of a method influences the determination of the amount of goodwill to be recognised.

Whenever a combination is not completed on the reporting date, the provisional amounts recognised on the date of acquisition shall be adjusted retrospectively, for a maximum period of one year from the date of acquisition and any additional assets and liabilities shall be recognised if new information is obtained on facts and circumstances existing on the date of acquisition which would result in the recognition of such assets and liabilities, should it have been known on that date.

When an entity under common control is acquired, the carrying amounts of the assets and liabilities of the acquisition are acquired, with the differences compared to the cost of acquisition of equity recorded.

Goodwill is considered to have an indefinite useful life and thus is not amortisable, being subject to annual impairment tests, regardless of whether or not there is any indication of impairment.

For the purpose of impairment testing, goodwill is allocated, on the date of acquisition, to each of the cash generating units expected to benefit from the business combination, regardless of the remaining assets and liabilities also associated with the cash-generating unit. When the operation, or part of it, associated with a cash generating unit is disposed of, the allocated goodwill is also derecognised and included in the balance of gains/losses of the disposal, calculated as the base for its relative value.

Goodwill related to investments in companies based abroad is recorded in those companies' reporting currency and translated into Euro at the exchange rate in force on the balance sheet date.

C. TANGIBLE FIXED ASSETS

Tangible fixed assets are recorded at acquisition cost net of accumulated depreciation and impairment losses.

Subsequent costs are included in the carrying amount of the asset or recognised as separate assets when it is probable that future economic benefits that exceed the originally measured level of performance of the existing asset will flow to the enterprise and the cost of the asset to the enterprise can be measured with reliability. All other subsequent expenditures are recognised as an expense in the period in which they are incurred.

Financial charges related to financing for production/acquisition of assets are added to the cost of these assets.

Depreciation is calculated on the straight-line basis, over the following years, which represent a reasonable estimate of the useful lives:

	Number of years
Buildings	20 - 50
Basic equipment	4 - 10
Transportation equipment	4 - 7
Office equipment	4 - 8
Biological assets	20 - 50

Depreciation is charged since the beginning of the moment in which the asset is ready to use. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

Current maintenance on repair expenses are charged to the actual income statement in which they occurred. Cost of operations that can extend the useful expected life of an asset, or from which are expected higher and significative future benefits, are capitalised.

In the event of impairment loss, the value of the tangible fixed asset is adjusted, with the respective adjustment considered a loss for the year.

Gains and losses and disposals are included in the income statement.

D. INTANGIBLE ASSETS

Intangible assets are initially measured at cost. Subsequently they are measured at cost less accumulated depreciation.

Research expenditures are recognised in the income statement as incurred.

Expenditure on project development will only be capitalised from the moment it is demonstrate its technical feasibility, the company has the intention and the ability to complete, use or sell it and that future economic benefits are expected from it.

Amortisation of the intangible assets is calculated by the straight-line method, and recorded as the asset qualifies for its required purpose, according to the following periods that satisfactorily reflect their expected useful life:

	Number of years
Industrial property	10 - 20
Customer portfolio	5
Software	3 - 6

The estimated useful lives of assets are reviewed and adjusted when necessary, at the balance sheet date.

E. BIOLOGICAL ASSETS

Agricultural products at the point of harvest and live animals or plants used in agricultural activities are recognised as biological assets. Biological assets can be separated into production assets and consumable assets.

As production assets, live animals or plants used in agricultural activity, from which agricultural products are obtained, are recognised. Production biological assets are measured using the cost model. The cost value is deducted from the corresponding accumulated depreciation and, when justified, from accumulated impairment losses. Biological production assets, from the moment they are ready to be used, are subject to depreciation according to the straight-line method, in accordance with the estimated useful life of each group of assets. Biological production assets are classified under the heading of other tangible fixed assets.

Live animals or plants that are to be harvested as agricultural products or sold are recognised as consumable assets. Consumable assets are measured at fair value less estimated costs at the point of sale. Agricultural products are measured at their fair value less estimated costs at the point of sale at the time of harvest. A gain or loss arising from the initial recognition of a biological asset at fair value less estimated point-of-sale costs and from a change in fair value less estimated point-of-sale costs of a biological asset is included in net income for the year. of the period in which they arise, under the headings other income and gains or other costs and losses.

F. INVESTMENT PROPERTY

Investment property includes land and buildings not used in production.

Investment property are initially registered at acquisition cost plus acquisition or production attributable costs, and when pertinent, financial costs during construction or installation. Subsequently they are measured at acquisition cost less cumulative depreciations and impairment, until the residual value.

Periods and methods of depreciation are those indicated in the note of tangible fixed assets.

Properties are derecognised when sold. When used in regular activity they are reclassified as a tangible fixed asset. When land and buildings are no longer assigned to the Group's activities, they will be reclassified from tangible fixed asset to an investment property.

G. NON-FINANCIAL ASSETS IMPAIRMENT

Intangible assets with indefinite useful lives are not amortised but are annually tested for impairment, or more frequently if there are events or changes in circumstances that indicate impairment.

Assets under depreciation are tested for impairment purposes whenever an event or change of circumstances indicates that its book value cannot be recovered.

For the estimate of impairments, assets are allocated to the lowest level for which there is separate identifiable cash flows (cash generating units).

In assessing impairment, both internal and external sources of information are considered. Tests are carried out if the level of profitability of cash-generating units is consistently below a minimum threshold, from which there is risk of impairment of assets. Impairment tests are also performed whenever management makes significant changes in operations (for example, total or partial discontinuation of the activity).

Impairment tests are performed internally. Whenever impairment tests are performed, future cash flows are discounted at a specific rate for the cash-generating unit, which includes the risk of the market where it operates.

The Group uses external experts (appraisers) only to determine the market value of land and buildings in situations of discontinuation of operations, where they are no longer recovered by use.

Impairment losses are recognised as the difference between its carrying amount and its recoverable amount. Recoverable corresponds to the higher of its fair value less sales expenses and its value for use.

Impairment losses, if any, are allocated specifically to the individual assets that are part of the cash flow generating unit.

Non-financial assets, which generated impairment losses are valued at each reporting date regarding reversals of that losses.

Regarding the impairment of goodwill, see note (b).

H. FINANCIAL INSTRUMENTS

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1) Financial assets

Initial recognition and measurement

Upon initial recognition, financial assets are classified and subsequently measured at amortised cost, at fair value through other comprehensive income (OCI), or at fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and Corticeira Amorim business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Corticeira Amorim has applied the practical expedient, Corticeira Amorim initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which Corticeira Amorim has applied the practical expedient are measured at the transaction price determined under IFRS 15.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

Corticeira Amorim business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, that is, the date that Corticeira Amorim commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments);
• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments);
• Financial assets at fair value through profit or loss.

Financial assets at amortised cost (debt instruments)

This category is the most relevant to Corticeira Amorim. Corticeira Amorim measures financial assets at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows;

and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Group's financial assets at amortised cost includes trade receivables and other debtors.

Financial assets at fair value through OCI (debt instruments)

Corticeira Amorim measures debt instruments at fair value through OCI if both of the following conditions are met:

• The financial asset is held within a business model with the objective of both holding it to collect the contractually-foreseen cash flows and the cash flow proceeding from its sale;

and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss.

As of December 31, 2023, the Group does not have financial assets classified in this category.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, Corticeira Amorim can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when Corticeira Amorim benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

As of December 31, 2023, the Group does not have financial assets classified in this category.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments.

Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

This category includes derivative instruments and, when applicable, listed equity investments which the Group had not irrevocably elected to classify at fair value through OCI.

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: (i) the economic characteristics and risks are not closely related to the host; (ii) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; (iii) and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category.

A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss.

Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group's consolidated statement of financial position) when:

• The rights to receive cash flows from the asset have expired;
  • or
• The Group transferred its contractual rights to receive cash flows arising from the financial asset or an obligation to pay the cash flows received in full in the short term, in the scope of an arrangement in which Corticeira Amorim (i) has no obligation to pay to the final recipient unless it receives equivalent amounts resulting from the original asset; (ii) is prohibited by the terms of the contract to sell or pledge the original asset other than as a guarantee to final recipient obligation to pay cash flows; and (iii) Corticeira Amorim has an obligation to remit any cash received on behalf of final recipients without significant delays; e
• Corticeira Amorim transferred substantially all the risks and benefits of the asset, or Corticeira Amorim not substantially transferred or retained all the assets and benefits of the asset but transferred control over the asset.

When Corticeira Amorim has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, Corticeira Amorim continues to recognise the transferred asset to the extent of its continuing involvement. In that case, Corticeira Amorim also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that Corticeira Amorim has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that Corticeira Amorim could be required to repay.

Impairment of financial assets

Corticeira Amorim recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Corticeira Amorim expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, Corticeira Amorim applies a simplified approach in calculating ECLs.

Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

For debt instruments at fair value through OCI, Corticeira Amorim applies the low credit risk simplification. At every reporting date, Corticeira Amorim evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, Corticeira Amorim reassesses the internal credit rating of the debt instrument.

Corticeira Amorim considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, Corticeira Amorim may also consider a financial asset to be in default when internal or external information indicates that Corticeira Amorim is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

2) Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Corticeira Amorim financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, reimbursable grants and derivative financial instruments.

The Group contracts confirming operations with financial institutions, which will be classified as reverse factoring agreements. These agreements are not used to manage the liquidity needs of the Group as long as the payment remains on the due date of the invoices (on that date the advance amounts are paid to the financial institution by the Group). For this reason, and since they do not give rise to financial expenses for the Group, the amounts of the invoices advanced to the suppliers that adhere to these contracts are kept in liabilities, in trade payables, and the payments at the due time are treated as operational payments. The supplier confirming operations are classified as operating in the Statement of Cash Flows.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

• Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied.

• Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to Corticeira Amorim. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

This category generally applies to interest-bearing loans and also including reimbursable grants at nil or below-market rate of interest.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

3) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

4) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

Corticeira Amorim uses derivative financial instruments, such as forward currency contracts, currency swaps, to hedge its foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment;
• Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment;
• Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, Corticeira Amorim formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how Corticeira Amorim will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

• i. There is 'an economic relationship' between the hedged item and the hedging instrument;
• ii. The effect of credit risk does not 'dominate the value changes' that result from that economic relationship;
  • and
• iii. The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit or loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit or loss as other expense.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the EIR method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of Corticeira Amorim commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item.

Corticeira Amorim only designates the spot element of forward contracts as a hedging instrument. The forward element is recognised in OCI and accumulated in a separate component of equity under cost of hedging reserve.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period. This also applies where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting is applied.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any amount remaining in accumulated OCI must be accounted for depending on the nature of the underlying transaction as described above.

I. INVENTORIES

Inventories are valued at the lower of acquisition cost or production cost and net realisable value. Acquisition cost includes direct and indirect expenses incurred in order to have those inventories at its present condition and place. Production cost includes used raw material costs, direct labour, other direct costs and other general fixed production costs (using normal capacity utilisation).

Year-end quantities are determined based on the accounting records, which are confirmed by the physical inventory taking. Rawmaterials, consumables and by-products are valued at weighted average cost, and finished goods and work-in-progress at the average production cost which includes direct costs and indirect costs incurred in production.

Where the net realisable value is lower than production cost, inventory impairment is registered. This adjustment will be reversed or reduced whenever the impairment situation no longer takes place.

The raw materials usually present alternative use without significant loss of value (for example through changes in caliber, reprocessing or use as raw material in other units). In these cases, a specific analysis of impairment is made, being that impairment situations in this instance are reduced.

The intermediate and finished products are not as susceptible of alternative use. In these cases, the amount by which inventories are expected to be realised is influenced by the age of those inventories. Thus, in addition to the specific analysis (priority form of determination of net realisable value), the Group applies a criteria based on the rotation to estimate the reduction of expected value of these materials in function of their ageing.

J. INCOME TAX – CURRENT AND DEFERRED

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where Corticeira Amorim operates and generates taxable income.

Current income tax relating to items recognised directly in equity is recognised in this account heading and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax is calculated using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised, in each reporting date, in correlation to the underlying transaction either in OCI or directly in equity.

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognised subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognised in profit or loss.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

The provisions for ongoing tax contingencies related to income tax are classified under deferred taxes. In the case of tax legal proceedings, they are annually increased by calculating interest and penalties defined by law.

K. EMPLOYEES BENEFIT

Corticeira Amorim's Portuguese employees benefit exclusively from the national welfare plan. Employees from foreign subsidiaries are either covered exclusively by local national welfare plans or benefit from complementary contribution plans and defined benefit.

As for the defined contribution plans, contributions are recognised as employee benefit expense when they are due.

Corticeira Amorim operates defined benefit pension plans in the subsidiaries Amorim Cork Italia and Icas Spa (Trattamento di Fine Rapporto) and Eflverson. In Switzerland, companies are obliged to provide a minimum pension plan to employees on terms equivalent to a defined benefit pension plan. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. The remeasures, comprising actuarial gains and losses, the effect of the asset ceiling, excluding the amounts included in net interest on the defined benefit net liability and the return on plan assets (excluding the amounts included in net interest on net liabilities), are recognised immediately in the statement of financial position with a debt or credit corresponding to retained earnings in the other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Corticeira Amorim recognises a liability and an expense for bonuses attributable to a large number of directors. These benefits are based on estimations that take in account the accomplishment of both individual goals and achievement by Corticeira Amorim with a pre-established level of profits.

L. PROVISIONS

Provisions are recognised when Corticeira Amorim has a present legal or constructive obligation as a result of past events, when it is more likely than not an outflow of resources will be required to settle the obligation and when a reliable estimation is possible.

Provisions are not recognised for future operating losses. Restructuring provisions are recognised with a formal detail plan and when third parties affected are informed.

The main items of provisions were recorded based on their nominal value. Provisions for ongoing proceedings are annually increased by the calculation of interest and fines, as defined by law. In all other cases, given the uncertainty regarding the timing of the outflow of resources to cover liability, it is not possible to reliably estimate the effect of the discount, which is estimated to be not material.

When there is a present obligation, resulting from a past event, but it is not probable that an out flow of resources will be required, or this cannot be estimated reliably, the obligation is treated as a contingent liability. This will be disclosed in the financial statements, unless the probability of a cash outflow is remote.

Contingent assets are not recognised in the financial statements but disclosed when it is probable the existence of an economic future inflow of resources.

M. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from contracts with customers is recorded when the control of goods and services is transferred to customers for an amount corresponding to the compensation that Corticeira Amorim expects to receive in exchange for such goods or services.

Corticeira Amorim generally acts as the "principal" in its agreements with customers, because Corticeira Amorim typically controls the goods and services before transferring them to customers.

Revenue from the sale of products is recognised at the time when the control over the goods is transferred to the customer. The average day's collection varies, not overcoming 90 days, after billing.

For each contract, Corticeira Amorim assesses whether there are other commitments in the contract that are distinct performance obligations and for which a portion of the transaction price should be allocated. In determining the price of the transaction, Corticeira Amorim takes into account possible variable remuneration, the existence or otherwise of a significant component of financing, nonmonetary consideration receivable and the possibility of payment to the customer.

If the consideration provided for in a contract includes a variable component, Corticeira Amorim estimates the amount it considers to be entitled to receive in exchange for the transfer of the goods to the customer. The variable component is estimated at the inception of the contract and is restricted in the event of uncertainty until it is highly probable that a significant reversal of the recognised revenue will not occur when the uncertainty associated with the variable compensation component is finally dissipated.

Some contracts give the customer the right to return goods and volume rebates. The return rights and the volume discounts give rise to a variable return.

• Right of return

Some contracts give the customer the right to return the products within a certain period. The Group uses the expected value method to estimate the variable consideration given the large number of contracts that have similar characteristics. The Group then applies the requirements on constraining estimates of variable consideration in order to determine the amount of variable consideration that can be included in the transaction price and recognised as revenue. A refund liability is recognised for the inventories that are expected to be returned. A right of return asset (and corresponding adjustment to cost of sales) is also recognised for the right to recover the goods from the customer.

• Quantity discount

Corticeira Amorim provides retrospective discounts on volumes to some customers when a certain amount of purchases in a given period exceeds a certain limit established in the agreement. Discounts are recorded on the credit of the customer's account receivable. To estimate the variable remuneration associated with the expected value of quantity discounts granted, Corticeira Amorim is based on the client's history.

The requirements of IFRS 15 to restrict the amounts of estimated variable remuneration are also applicable, and Corticeira Amorim records a liability related to the amount to be granted for discounts.

Using the practical expedient provided for in IFRS 15, Corticeira Amorim does not adjust the amount of the consideration for the financial effect when, it is initially expected, that the period between the transfer of the good or service to the customer and the time at which the customer pays the good or the service is less than a year.

The same happens when Corticeira Amorim receives shortterm advances from its clients - in this case, the value of the compensation is not adjusted by the financial effect.

The Amorim Cork Flooring offers guarantees of proper operation of its products for certain types of contracts. These quality guarantees are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

N. GOVERNMENT GRANTS

Grants received are related generally with fixed assets expenditure. No-repayable grants are present in the balance sheet as deferred income, and recognised as income on a systematic basis over the useful life of the related asset. Repayable grants are presented as other financial liabilities following the recognition and measurement principles of IFRS 9.

Reimbursable grants with "out of market" interest rates are measured at fair value when they are initially recognised. For each grant, the fair value determination at the initial time corresponds to the present value of the future payments associated with the grant, discounted at the company's financing rate at the date of recognition, for loans with similar maturities.

Difference between nominal and fair value at initial recognition is included in "refundable grants", at other financial liabilities, being afterwards recognised in net result as "Other income and gains" over the estimated useful life of the related asset. Subsequently these grants are measured at amortised cost.

The grants received are classified as a financial activity in the Statement of Cash Flows.

O. RIGHT OF USE AND LEASING

Corticeira Amorim assesses, at the commencement date of the contract, whether it is or contains a lease. That is, if the contract transfers the right to control the use of an identified asset for a period of time in exchange for consideration.

Corticeira Amorim applies a unique recognition and measurement approach to all leases, except for short-term and low-value asset leases. Corticeira Amorim recognises lease liabilities corresponding to payments made and right-of-use assets that represent the right to use the underlying assets.

Right of use

As a lessee, Corticeira Amorim recognises the right-of-use assets on the lease start date (that is, the date on which the underlying asset is available for use). The right-of-use assets is measured at cost, less accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.

The cost of the right-of-use assets includes the amount of recognised lease liabilities, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives received. Right of use assets are depreciated using the straight-line method over the shorter of the lease term and the estimated useful lives of the assets, as follows:

	Number of years
Lands	60
Buildings	3 - 10
Vehicles	3 - 5

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

Right-of-use assets are also subject to impairment, in accordance with the policy presented in note g) Impairment of non-financial assets.

Lease liabilities

At the commencement date of the lease, Corticeira Amorim recognises lease liabilities measured at the present value of the payments to be made over the term of the contract. Lease payments include fixed payments less any incentives receivables, variable lease payments that depend on an index or rate and amounts you expect to pay related to residual value guarantees. Lease payments also include the exercise price of a purchase option, if it is reasonably expected to be exercised by Corticeira Amorim and payments of penalties for terminating the lease, if the lease term reflects the Corticeira Amorim exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, Corticeira Amorim uses an incremental borrowing rate on the lease start date, because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Corticeira Amorim's lease liabilities are included in interest-bearing debt.

Short-term lease and lease of low-value assets

Corticeira Amorim applies the short-term lease recognition exemption, i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on

short-term leases and leases of low value assets are recognised as an expense on a straight-line basis over the lease term.

P. EQUITY

Ordinary shares are included in equity.

When Corticeira Amorim acquires own shares, the acquisition value is recognised in equity to be deducted from its amount, in the entry "Treasury Stock".

Corticeira Amorim recognises a liability to pay a dividend when the distribution is authorised, and the distribution is no longer at the discretion of Corticeira Amorim. As per the applicable corporate laws, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

Q. NON-RECURRING RESULTS

Non-recurring operating results, which, due to their materiality or nature, may distort Corticeira Amorim's financial performance, as well as their comparability, are presented on a separate line in the Consolidated Income Statement by Nature. These results include, among others, restructuring costs, goodwill impairment, transaction costs for the acquisition of subsidiaries, disinvestment costs in certain markets and significant capital gains from the relocation of premises.

R. CASH AND CASH EQUIVALENTS

The account heading "Cash and cash equivalents" includes cash, deposits and cash investments with short maturities that are readily available without significant risk of change in value.

For the purposes of the statement of cash flows, the account heading "Cash and cash equivalents" also includes bank overdrafts included in the account heading "Bank loans" and financial assets held for trading.

S. LOAN EXPENSES

The Group capitalises the borrowing expenses (interest and other costs incurred due to borrowings of funds) that are directly attributable to the acquisition, construction or production of an asset that qualifies as part of the cost of that asset, that is, a asset that necessarily takes a substantial amount of time to get ready for its intended use or for sale. All other borrowing costs must be accounted for as an expense in the period in which they are incurred.

T. SUBSEQUENT EVENTS

Corticeira Amorim recognises in the financial statements the events that, after the balance sheet date, provide additional information on the conditions that existed on the balance sheet date, including the estimates inherent in the preparation of the financial statements. The Group does not recognise events that, after the balance sheet date, provide information on conditions that occur after the balance sheet date.

Made from cork, a 100% natural, recyclable and renewable raw material, Corkeen flooring combines safety, accessibility and sustainability credentials, merging the concepts of Community, Nature and Planet.

3. FINANCIAL RISK MANAGEMENT

Corticeira Amorim's activities expose it to a variety of financial risks: market risks (including currency risk, interest rate risk and raw material price risk), credit risk, liquidity risk and capital risk.

Market Risk

a. Exchange rate risk

Exchange rate risk management policy established by Corticeira Amorim Board points out to a total hedging of the assets deriving from sales in the most important currencies and from USD acquisitions. If the exchange rate hedging policy did not exist, the 1% increase in the USD exchange rate, keeping all other variables constant, would lead to earnings before tax result of 1.7 M€. As for book orders up to 90 days, each Business Unit (BU) responsible will decide according to exchange rate evolution. Book orders, considered relevant, due after 90 days, will be presented by the Business Unit responsible to the Corticeira Amorim Board.

As of December 31, 2023, taking into account the relationship between the amount of the Group's exposure to financial assets and liabilities in foreign currency and the notional number of hedges contracted, exchange rates different from the Euro currency (particularly USD), would have no material effect in the consolidated results of the Group. As for hedge book orders any effect would be registered in Equity. As for non-euro net investments in subsidiaries/ associate, any exchange rate effect would be registered in Equity, because Corticeira Amorim does not hedge this type of assets. The amount recorded under Exchange rate differences, including the effect of not covering these investments, reached the amount of -6,677 K€ as of December 31, 2023 (2022: -4,185 K€).

b. Interest rate risk

As of 31 December 2023, of the total interest-bearing debt, 83.3 M€ had interest at a fixed rate, of which 15 M€ will be due in 2024 and 35 M€ in 2025 and 20 M€ in 2027, (maturity is only related to Corticeira Amorim Individual). As of December 31, 2022, the value was 86.3 M€.

Interest rate risk results, essentially, from non-current bank financing obtained at a variable rate and from emissions under the commercial paper programme.

As of December 31, 2023, if interest rates were 0.1 percentage points higher, with the remaining variables remaining constant, the pre-tax result would be lower by around 231 thousand euros (128 thousand euros in 2022) as a result of the increase in financial costs with variable rate debt.

c. Raw material price risk

In view of the critical nature of this factor, the procurement, storage and preparation management of the only variable common to all Corticeira Amorim activities, which is the raw material (cork), is assembled in an autonomous BU, which, among other objectives, makes it possible to prepare, discuss and decide within the Board of Directors the orientation or the multiannual supply policy to be developed.

The Group's cork procurement team is made up of a group of highly specialised staff, mainly in Portugal, Spain and North Africa. The objective of the buyer's team is to maximise the price / quality ratio of the purchased cork and simultaneously ensure the purchase of sufficient quantity for the desired level of production.

The cork market is an open market where price is determined by the supply and demand law. The price offered by Corticeira Amorim is determined business by business, and depends essentially on the estimated quality of cork. Corticeira Amorim does not have the ability to set the purchase price of the campaign, and this is a result of the operation of the market.

The purchase is concentrated in a certain period of the year, in which the raw material supply is guaranteed for the whole of the following year, the sales prices of the finished products and margins of the business are defined taking into account the cost of acquiring the raw material and estimated availability for the annual campaign.

Credit risk

Credit risk is due, mainly, to receivables from customers related to trade sales. The credit risk results, essentially, from the accounts receivable from customers resulting from commercial transactions. Corticeira Amorim is attentive to the issue of collection of accounts receivable, but in a universe of almost 30 thousand customers around the world, the risk is significantly distributed. The credit risk is naturally reduced in face of the dispersion of sales by a very high number of clients, spread across all continents, none representing more than 2% of total sales.

Credit risk is monitored by the operating companies Financial Departments, taking in consideration its history of trade relations, financial situation as well as other types of information that Corticeira Amorim business network has available related with each trading partner. Credit limits are analysed and revised, if necessary, on a regular basis.

Normally no guarantees are due from customers. Corticeira Amorim in non-recurring situations use credit insurance. Credit risk derives from cash and cash equivalents balances. Corticeira Amorim previously analysis the ratings of the financial institutions so that it can minimise the failure of the counterparts.

The maximum credit risk is the one that results from the failure to receive all financial assets (December 2023: 325 M€ and December 2022: 337 M€).

Corticeira Amorim's Cash and equivalents is spread across more than 100 subsidiaries. In terms of the quality of credit risk associated with cash and equivalents, as at 31 December 2023, Corticeira Amorim selected financial institutions whose rating does not risk the realisation of these assets. It should be noted that, of the total cash and cash equivalents (73 M€): around 3.5 M€ are deposited in a financial institution (private capital) with the following ratings: Moody's Baa1 / P-2; Fitch: BBB- / F3.

Liquidity Risk

Corticeira Amorim financial department regularly analyses future cash flows so that it can deliver enough liquidity for the Group to provide operating needs, and also to comply with credit lines payments. Excess of cash is invested in interest bearing shortterm deposits. This strategy offers the necessary flexibility to conduct its business.

Financial liabilities' estimated non-discounted cash flows by contractual maturities are as follows:

	Up to 1 year	1 to 2 years	2 to 4 years	More than 4 years	Total
Interest-bearing debt (Note 22)	108,986	38,284	45,200	21,385	213,855
Other financial liabilities (Note 24)	46,871	7,690	4,026	182	58,770
Trade payables (Note 23)	170,549				170,549
Total as of December 31, 2022	326,406	45,974	49,226	21,567	443,173
Interest-bearing debt (Note 22)	212,440	42,856	29,061	29,877	314,233
Other financial liabilities (Note 24)	51,497	3,362	4,131	808	59,797
Trade payables (Note 23)	159,000				159,000
Total as of December 31, 2023	422,937	46,218	33,192	30,685	533,030

Values in thousand euros.

Liquidity risk coverage is done, essentially, by the existence of a set of credit lines and commercial paper emission programmes immediately available, and, eventually, by the existence of bank deposits. Corticeira Amorim ended the year with unused credit lines and programmes for issuing commercial paper totalling €229.9 million (at December 31, 2022 the comparable figure was €220.1 million). If we add Cash and Equivalents, the Liquidity Reserve at the end of 2023 was €303.3 M (305.1 M€ at December 31, 2022).

Capital Risk

Corticeira Amorim's key objective is to assure business continuity, delivering a proper return to its shareholders and the correspondent benefits to its remaining stakeholders. A careful management of the capital employed in the business, using the proper combination of capital in order to reduce its costs, makes it possible to fulfil this objective. Corticeira Amorim is a solid company with an appropriate and balanced capital structure, responsible for an activity which is fundamental for the sustainability of the whole cork industry. Without the cork stoppers produced by Corticeira Amorim, thousands of wineries and bottlers would not be able to operate in the most varied geographical areas.

In order to achieve the proper combination of capital employed, the Board can obtain from the General Shareholders Meeting the approval of the necessary measures, namely adjusting the dividend pay-out ratio, the treasury stock, raising capital through new shares issue, sale of assets or other type of measures. The key indicator for the said combination is the Equity/Assets ratio. Corticeira Amorim establishes as a target a level of not less than 40% of Equity/Assets ratio attending the company features and of the economic sector that she belongs.

The ratio register was:

	December 31, 2023	December 31, 2022	December 31, 2021
Equity	800,044	744,926	623,283
Assets	1,415,225	1,269,316	1,081,289
Equity/Assets	56.5%	58.7%	57.6%

Values in thousand euros.

Financial assets and liabilities fair value

The Group measures part of its financial assets and liabilities at fair value at the reference date of the financial statements. Derivative financial instruments are included in the categories mentioned at Note 2h. The derivatives used by Corticeira Amorim have no public quotation because they are not traded in an open market (over the counter derivatives).

According to the accounting standards, a fair value hierarchy is established that classifies three levels of data to be used in measurement techniques at fair value of financial assets and liabilities:

• Level 1 data public quotation (non-adjusted) in liquid markets for comparable assets or liabilities;
• Level 2 data different data of public quotation observable for the asset or the liability, directly or indirectly;
• Level 3 data non observable data for the assets or the liability. During the year, there were no transfers between the levels mentioned above.

As of December 31, 2023, derivative financial instruments recognised as assets in the consolidated statement of financial position were 189 K€ as assets (31/12/2022: 1,141 K€) and 68 K€ as liabilities (31/12/2022: 2 K€), as stated in notes 14 and 24.

Corticeira Amorim uses forward outrights and options to hedge exchange rate risk, as shown below. Evaluating exchange rate hedge instruments requires the utilisation of observable inputs (level 2). Fair value is calculated using a proprietary model of Corticeira Amorim, developed by Reuters, using discounted cash flows method for forwards outrights. As for options, it is used the Black & Scholes model.

Summary of the derivative financial instruments' fair value:

Nature Hierarchy	Type		2023		2022
		Notional	Fair Value	Notional	Fair Value
	Cash flow hedge	18,444	129	48,107	1,193
	Fair value hedge	20,697	182	33,508	108
	Trading derivatives	0	−122	0	−161
Level 2 Total		39,141	189	81,614	1,141
Total assets		39,141	189	81,614	1,141
	Cash flow hedge	970	1	32	0
	Fair value hedge	7,645	−49	151	−2
	Trading derivatives	-	−19	-	0
Level 2 Total		8,616	−68	183	−2
Total liabilities		8,616	−68	183	−2

The main inputs used in valuation are forward exchange rate curves and estimates of currency volatility.

Exchange rate contracts

As of December 31, 2023, options contracts and forward outright related with sales currencies were as follows:

	2023			2022
USD	40,816	94%	51,532	94%
ZAR	2,319	5%	2,992	5%
GBP	117	0%	116	0%
JPY	0	0%	70	0%
HUF	0	0%	0	0%
Forward - long positions	43,252	100%	54,710	100%
USD	0	0%	499	100%
HUF	-	0%	-	0%
Forward - short positions	0	0%	499	100%
USD	4,505	100%	26,588	100%
Options - long positions	4,505	100%	26,588	100%

Values in thousand euros.

It is expected that hedged highly probable transactions in foreign currencies occur during the first half of 2024. The corresponded value recognised in equity as hedge accounting will be recorded in income statement in that same period.

The amount recognised in comprehensive income statement as change in derivative financial instruments' fair value reached -549 K€ (2022: 732 K€).

In relation with fair value hedging, during 2023 a loss of 81 K€ was recorded in the hedging instruments (2022: loss of 2,724 K€) and a gain of 669 K€ was recorded in the hedged items (2022: gain of 871 K€).

Values in thousand euros.

4. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of consolidated financial statements requires the Group's management to make judgments and estimates that affect the statement of financial position and the reported results. These estimates are based on the best information and knowledge about past and/or present events and on the operations that the Company considers it may implement in the future. However, at the date of completion of such operations, their results may differ from these estimates.

Changes to these estimates that occur after the date of approval of the consolidated financial statements will be corrected in the income statement in a prospective manner, in accordance with IAS 8 - "Accounting Policies, Changes in Accounting Estimates and Errors".

The estimates and assumptions that imply a greater risk of giving rise to a material adjustment in assets and liabilities are described below:

• Entities included in the consolidation perimeter

To determine the entities to be included in the consolidation perimeter, the Group assesses the extent to which it is exposed, or has rights, to variability in return from its involvement with that entity and can take possession of them through the power it holds over this entity.

The decision that an entity must be consolidated by the Group requires the use of judgment, estimates, and assumptions to determine the extent to which the Group is exposed to return variability and the ability to take possession of them through its power.

Other assumptions and estimates could lead to the Group's consolidation perimeter being different, with direct impact on the consolidated financial statements.

• Impairment of non-current assets, excluding goodwill

The determination of a possible impairment loss can be triggered by the occurrence of various events, such as the availability of future financing, the cost of capital or other market, economic and legal changes or changes with an adverse effect on the technological environment, many of which are beyond the Group's control. The identification and assessment of impairment indicators, the estimation of future cash flows, and the calculation of the recoverable value of assets involve a high degree of judgment by the Board.

• Impairment of goodwill

Goodwill is annually subjected to impairment tests or whenever there are indications of a possible loss of value in accordance with the criteria described in Note 2 b). The recoverable values of the cash-generating units to which goodwill is allocated are determined based on the calculation of current use values. These calculations require the use of estimates by management.

• Intangible and tangible assets

The life of an asset is the period during which the Company expects that an asset will be available for use and this should be reviewed at least at the end of each financial year. The determination of the useful lives of assets, the amortisation/depreciation method to be applied, and the estimated losses resulting from the replacement of equipment before the end of its useful life due to technological obsolescence is crucial in determining the amount of amortisation/ depreciation to be recognised in the consolidated income statement each period.

These three parameters are defined using management's best estimates for the assets and businesses concerned, and taking account of the practices adopted by companies in the sectors in which Corticeira Amorim operates.

• Consumable biological assets

When determining the fair value of consumable biological assets, the present value method of discounted cash flows is used, which were determined using a model developed internally.

In the model developed, assumptions corresponding to the nature of the assets under evaluation are considered, namely, the development cycle, productivity, mortality rate, cork sales price, deducted from the extraction cost.

• Provisions

The Group periodically reviews any obligations arising from past events, which should be recognised or disclosed. The subjectivity involved in determining the probability and amount of internal resources required to meet obligations may give rise to significant adjustments, either due to changes in the assumptions made, or due to the future recognition of provisions previously disclosed as contingent liabilities.

• Fair value of financial assets and liabilities

When the fair value of a financial asset or liability is calculated, on an active market, the respective market price is used. When there is no active market, which is the case with some of Corticeira Amorim's financial assets and liabilities, valuation techniques generally accepted in the market, based on market assumptions, are used.

The Group applies evaluation techniques for unlisted financial instruments, such as derivatives, financial instruments at fair value and instruments measured at amortised cost. The most frequently used valorisation models are models of discounted cash flows and option models, which incorporate, for example, interest rate and market volatility curves.

For certain types of more complex derivatives, more advanced valuation models are used containing assumptions and data that are not directly observable in the market, for which the Group uses the proprietary model specified in Note 3.

The "Protected Cork Villages" program started with a pilot project in 2023, underscoring Corticeira Amorim's commitment to forest preservation and the well -being of rural communities. By joining forces, we not only strengthen safety and quality of life in villages located in fire -prone areas but also promote a sustainable vision for the future.

5. EXCHANGE RATES USED IN CONSOLIDATION

Exchage rates		December 31, 2023	Average 2023	Average 2022	December 31, 2022
Argentine Peso	ARS	892.205	319.957	137.082	189.147
Australian Dollar	AUD	1.626	1.629	1.517	1.569
Lev	BGN	1.956	1.956	1.956	1.956
Brazilian Real	BRL	5.362	5.401	5.440	5.639
Canadian Dollar	CAD	1.464	1.460	1.370	1.444
Swiss Franc	CHF	0.926	0.972	1.005	0.985
Chilean Peso	CLP	971.810	907.849	916.718	907.320
Yuan Renminbi	CNY	7.851	7.660	7.079	7.358
Czech Koruny	CZK	24.724	24.004	24.566	24.116
Danish Krona	DKK	7.453	7.451	7.440	7.437
Algerian Dinar	DZD	148.007	146.547	149.143	146.678
Euro	EUR	1.000	1.000	1.000	1.000
Pound Sterling	GBP	0.869	0.870	0.853	0.887
Hong Kong Dollar	HKD	8.618	8.466	8.246	8.358
Forint	HUF	382.800	381.853	391.287	400.870
Yen	JPY	156.330	151.990	138.027	140.660
Moroccan Dirham	MAD	10.886	10.952	10.681	11.162
Zloty	PLN	4.340	4.542	4.686	4.681
Ruble	RUB	99.192	92.874	72.447	75.655
Swedish Krona	SEK	11.096	11.479	10.630	11.122
Tunisian Dinar	TND	3.394	3.351	3.241	3.317
Turkish Lira	TRL	32.653	25.760	17.409	19.965
US Dollar	USD	1.105	1.081	1.053	1.067
Rand	ZAR	20.348	19.955	17.209	18.099

6. COMPANIES INCLUDED IN THE CONSOLIDATED STATEMENTS

Company		Head Office	Country	2023	2022
Amorim Florestal
Amorim Florestal, S.A.		Vale de Cortiças - Abrantes	PORTUGAL	100%	100%
Amorim Agroflorestal , S.A.		Ponte de Sor	PORTUGAL	100%	100%
Amorim Florestal III, S.A.		Ponte de Sor	PORTUGAL	100%	100%
Amorim Florestal España, S.L.		San Vicente Alcántara	SPAIN	100%	100%
Amorim Florestal Mediterrâneo, S.L.		Cádiz	SPAIN	100%	100%
Amorim Tunisie, S.A.R.L.		Tabarka	TUNISIA	100%	100%
Herdade de Rio Frio, S.A.		Ponte de Sor	PORTUGAL	100%	100%
Comatral - C. de Maroc. de Transf. du Liège, S.A.		Skhirat	MOROCCO	100%	100%
Cosabe - Companhia Silvo-Agrícola da Beira S.A.		Lisboa	PORTUGAL	100%	100%
SIBL - Société Industrielle Bois Liége		Jijel	ALGERIA	51%	51%
Société Nouvelle du Liège, S.A. (SNL)		Tabarka	TUNISIA	100%	100%
Société Tunisienne d'Industrie Bouchonnière		Tabarka	TUNISIA	55%	55%
Vatrya - Serviços de Consultadoria, Lda.		Funchal - Madeira	PORTUGAL	100%	100%
Amorim Cork
Amorim Cork, SGPS, S.A.		Santa Maria Lamas	PORTUGAL	100%	100%
ACIC USA, LLC		Califórnia	U.S.A.	100%	100%
Agglotap, S.A.		Girona	SPAIN	91%	91%
All Closures In, S.A.		Paços de Brandão	PORTUGAL	75%	75%
Amorim Cork, S.A.		Santa Maria de Lamas	PORTUGAL	100%	100%
Amorim Australasia Pty Ltd.		Adelaide	AUSTRALIA	100%	100%
Amorim Bartop, S.A.		Vergada	PORTUGAL	75%	75%
Amorim Champcork, S.A.		Santa Maria de Lamas	PORTUGAL	100%	100%
Amorim Cork América, Inc.		Califórnia	U.S.A.	100%	100%
Amorim Cork Beijing Ltd.		Beijing	CHINA	100%	100%
Amorim Cork Bulgaria EOOD		Plovdiv	BULGARIA	100%	100%
Amorim Cork Deutschland GmbH & Co KG		Mainzer	GERMANY	100%	100%
Amorim Cork España, S.L.		San Vicente Alcántara	SPAIN	100%	100%
Amorim Cork Hungary Zrt.		Budapeste	HUNGARY	100%	100%
Amorim Cork Itália, SPA		Conegliano	ITALY	100%	100%
Amorim Cork South Africa (Pty) Ltd.		Cidade do Cabo	SOUTH AFRICA	100%	100%
Amorim France, S.A.S.		Champfleury	FRANCE	100%	100%
Amorim Top Series France, S.A.S.		Merpins	FRANCE	100%	100%
Amorim Top Series, S.A.		Vergada	PORTUGAL	75%	75%
Amorim Top Series Scotland, Ltd		Dundee	SCOTLAND	75%	75%
Biocape - Importação e Exportação de Cápsulas, Lda.	(c)	Mozelos	PORTUGAL	75%	60%
Bouchons Prioux		Epernay	FRANCE	91%	91%
Bozales ICAS HITE Argentina	(b)	Mendoza	ARGENTINA	26%	26%
Chapuis, S.L.		Girona	SPAIN	100%	100%
Corchera Gomez Barris	(b)	Santiago	CHILE	50%	50%
Corchos de Argentina, S.A.	(a)	Mendoza	ARGENTINA	50%	50%
Bourrassé Chile		Santiago	CHILE	100%	100%
Elfverson & Co. AB		Paryd	SWEDEN	38%	38%
Elfverson I.P., S.A.		Vergada	PORTUGAL	38%	38%
Elfverson Portugal, SA		Santa Maria de Lamas	PORTUGAL	38%	38%
S.A.S. Ets Christian Bourrassé		Tosse	FRANCE	100%	100%
FP Cork, Inc.		Califórnia	U.S.A.	100%	100%
Francisco Oller, S.A.		Girona	SPAIN	98%	98%
HITE, S.A. - Hispano Italiana Trenzados Especiales, S.A.	(b)	Barcelona	SPAIN	25%	25%
HdP S.P.A.	(b)(i)	Ivrea	ITALY	-	50%
I.C.A.S. S.p.A.	(b)	Ivrea	ITALY	50%	50%
ICAS Brasil Ltda.	(b)	Garibaldi (RS)	BRAZIL	25%	25%

Company		Head Office	Country	2023	2022
Amorim Cork
ICAS France S.a.r.l.	(b)	Reims	FRANCE	50%	50%
ICAS HITE Australasia		Adelaide	AUSTRALIA	37%	37%
Indústria Corchera, S.A.	(b)	Santiago	CHILE	50%	50%
Kapselfabrik. GmbH	(b)	Bad Kreuznach	GERMANY	50%	50%
Korken Schiesser Ges.M.B.H.		Viena	AUSTRIA	69%	69%
Olimpiadas Barcelona 92, S.L.		Girona	SPAIN	100%	100%
Pfefferkorn & Co. GmbH	(b)	Simmern	GERMANY	50%	50%
Pfefferkorn & Reiter GmbH	(b)	Simmern	GERMANY	50%	50%
Portocork América, Inc.		Califórnia	U.S.A.	100%	100%
Portocork France, S.A.S.		Bordéus	FRANCE	100%	100%
Portocork Itália, s.r.l		Milão	ITALY	100%	100%
Prats & Bonany S.A.	(b)	Reims	FRANCE	37%	37%
Relvas II - Rolhas de Cortiça S.A.	(b) (l)	Montemor-o-Novo	PORTUGAL	50%	50%
Sarl Relvas France	(b)	Reims	FRANCE	37%	37%
SACI S.r.l.	(b)	Ivrea	ITALY	50%	50%
Sagrera et Cie		Reims	FRANCE	91%	91%
S.A. Oller et Cie		Reims	FRANCE	98%	98%
San Bernardo Tappi Spumante S.r.l	(b)	Ivrea	ITALY	50%	50%
Schneider (Mainsee 1407. V V) GmbH	(b)	Bad Kreuznach	GERMANY	50%	50%
S.C.I. Friedland		Céret	FRANCE	100%	100%
S.C.I. Prioux		Epernay	FRANCE	91%	91%
Socori, S.A.		Rio Meão	PORTUGAL	100%	100%
Socori Forestal, S.L.		Cáceres	SPAIN	100%	100%
Société Nouvelle des Bouchons Trescases	(a)	Perpignan	FRANCE	50%	50%
Sumois S.A	(b)	Sant Sadurni D'Anoia	SPAIN	25%	25%
Tango S.S	(b)	Ivrea	ITALY	37%	37%
Trefinos Italia, s.r.l		Treviso	ITALY	91%	91%
Trefinos USA, LLC		Fairfield, CA	U.S.A.	91%	91%
Trefinos, S.L.		Girona	SPAIN	91%	91%
Victor y Amorim, S.L.	(b)	Navarrete - La Rioja	SPAIN	50%	50%
Vinolok a.s	(a)	Jablonec nad Nisou	CZECHIA	50%	50%
Wine Packaging & Logistic, S.A.	(a)	Santiago	CHILE	16%	16%
VMD Group SA	(e)	Pully	SWITZERLAND	55%	-
Chaillot Bouchons SA	(e)	Saint-Prex	SWITZERLAND	55%	-
SUBOENO SA	(e)	Saint-Prex	SWITZERLAND	55%	-
PM OEnologie Consulting Sàrl	(e)	Saint-Léonard	SWITZERLAND	55%	-
Amorim Cork Flooring
Amorim Cork Flooring, S.A.		S. Paio de Oleiros	PORTUGAL	100%	100%
Amorim Benelux, BV		Tholen	NETHERLANDS	100%	100%
Amorim Deutschland, GmbH		Delmenhorts	GERMANY	100%	100%
Amorim Subertech, S.A.	(g)	S. Paio de Oleiros	PORTUGAL	-	100%
Amorim Flooring (Switzerland) AG		Zug	SWITZERLAND	100%	100%
Amorim Flooring Austria GesmbH		Viena	AUSTRIA	100%	100%
Amorim Flooring Canada, Inc.		Vancôver	CANADA	100%	100%
Amorim Flooring Investments, Inc.	(h)	Hanover - Maryland	U.S.A.	-	100%
Amorim Flooring North America Inc.		Hanover - Maryland	U.S.A.	100%	100%
Amorim Flooring Rus, LLC		Moscovo	RUSSIA	100%	100%
Amorim Flooring Sweden AB	(c)	Mölndal	SWEDEN	100%	84%
Amorim Flooring UK, Ltd.		Manchester	UN. KINGDOM	100%	100%
Cortex Korkvertriebs, GmbH		Fürth	GERMANY	100%	100%
Dom KorKowy, Sp. Zo. O.	(b)	Kraków	POLAND	50%	50%
Korkkitrio Oy		Tampere	FINLAND	78%	78%
Timberman Denmark A/S	(j)	Hadsund	DENMARK	80%	100%
Amorim Cork Composites
Amorim Cork Composites, S.A.		Mozelos	PORTUGAL	100%	100%
Amorim (UK), Ltd.		Horsham West Sussex	UN. KINGDOM	100%	100%
Amorim Cork Composites, LLC		São Petersburgo	RUSSIA	100%	100%
Amorim Cork Composites, GmbH		Delmenhorts	GERMANY	100%	100%

Company		Head Office	Country	2023	2022
Amorim Cork Composites
Amorim Cork Composites, Inc.		Trevor - Wisconsin	U.S.A.	100%	100%
Navicork by Amorim, Lda.	(k)	Mozelos	PORTUGAL	100%	-
Amorim Deutschland, GmbH		Delmenhorts	GERMANY	100%	100%
Amorim Industrial Solutions - Imobiliária, S.A.		Corroios	PORTUGAL	100%	100%
Amorim Sports, Lda.	(c)	Mozelos	PORTUGAL	100%	70%
Amorim Sports North America, Inc.	(c)	Trevor - Wisconsin	U.S.A.	100%	90%
Amosealtex Cork Co., Ltd.	(f)	Xangai	CHINA	-	50%
Chinamate (Shaanxi) Natural Products Co., Ltd.		Shaanxi	CHINA	100%	100%
Chinamate Development Co. Ltd.		Hong Kong	CHINA	100%	100%
Compruss – Investimentos e Participações, Lda.		Mozelos	PORTUGAL	100%	100%
Corkeen Europe		Mozelos	PORTUGAL	85%	85%
Corkeen Global		Mozelos	PORTUGAL	100%	100%
Corkeen North America, Ltd.	(c)	Trevor - Wisconsin	U.S.A.	100%	90%
Corticeira Amorim - France, SAS	(f)	Lavardac	FRANCE	-	100%
Korko - Made By Nature, Lda	(a)	Mozelos	PORTUGAL	50%	50%
Postya - Serviços de Consultadoria, Lda.		Funchal - Madeira	PORTUGAL	100%	100%
Amorim Cork Insulation
Amorim Cork Insulation, S.A.		Vendas Novas	PORTUGAL	100%	100%
Corticeira Amorim and Others
Corticeira Amorim, SGPS, S.A.		Mozelos	PORTUGAL	100%	100%
Ginpar, S.A. (Générale d' Invest. et Participation)		Skhirat	MOROCCO	100%	100%
Amorim Cork Research, Lda.		Mozelos	PORTUGAL	100%	100%
Amorim Cork Services, Lda.		Mozelos	PORTUGAL	100%	100%
Amorim Cork Ventures, Lda.		Mozelos	PORTUGAL	100%	100%
Corecochic - Corking Shoes Investments, Lda.	(a)	Mozelos	PORTUGAL	50%	50%
TDCork - Tapetes Decorativos com Cortiça, Lda.	(a)	Mozelos	PORTUGAL	25%	25%
Soc. Portuguesa de Aglomerados de Cortiça, Lda.		Montijo	PORTUGAL	100%	100%
Amorim Cork IT S.A.	(d)	Mozelos	PORTUGAL	100%	100%
Amorim - Viagens e Turismo, S.A.	(e)	Mozelos	PORTUGAL	100%	-

(a) Equity method consolidation.

(c) Increased interest percentage.

(e) Company acquired in 2023.

(f) Company liquidated in 2023.

• (g) Amorim Subertech, S.A. merged into Amorim Cork Flooring, S.A.
• (h)Amorim Flooring Investments, Inc. merged into Amorim Flooring North America Inc.
• (i) HdP S.P.A. merged into SACI S.r.l.
• (j) Reduction interest percentage.
• (k) Company set-up in 2023.
• (l) Change of company name, former Relvas II Rolhas de Champanhe S.A.

The percentages indicated are the percentages of interests and not of control.

For entities consolidated by the full consolidation method, the percentage of voting rights held by "Non-Controlling Interests" is equal to the percentage of share capital held.

The main changes to the consolidation perimeter are detailed below:

Acquisition of VMD Group

As communicated to the market authorities on August 30, 2023, Corticeira Amorim, through its subsidiary Amorim Cork, S.A., entered into an agreement for the acquisition of 55% of the capital of VMD Group SA ("VMD Group"), headquartered in Pully, Switzerland, in the amount of 12.3 M€ (11.6 M CHF), paid in cash. The execution of the operation was subject to compliance with certain conditions by the parties, which were met on October 11, 2023.

With this acquisition, Corticeira Amorim acquires a significant stake in a family group that owns brands recognised for their quality, a wide range of products and a privileged relationship with a solid customer base, which will allow it to reinforce its presence in Switzerland. Control over the acquired company is obtained through the majority of rights.

The VMD Group through its three subsidiaries – Chaillot Bouchons SA ("Chaillot"), headquartered in Saint-Prex, Switzerland, with two branches in Mendrisio and Sion, Suboeno SA, headquartered in Saint-Prex, Switzerland , and PM Œnologie Consulting Sàrl, based in St-Léonard, Switzerland – develops its activity in the areas of production and marketing of corks, capsules, oenological products, barrels and equipment for cellars in the wine sector, with a team of 34 employees.

The Group chose to measure non-controlling interests by their respective share in the acquired company's assets and liabilities.

⁽b)Corticeira Amorim directly or indirectly controls the relevant activities – line-by-line consolidation method.

⁽d)Change of company name, former OSI - Sistemas Informáticos e Electrotécnicos, Lda.

The VMD Group was incorporated into the consolidated financial statements as of October 1, 2023.

Total transaction expenses with the acquisition of the VMD Group were 0.2 M€, recorded in Other costs and losses.

Assets and liabilities of the acquired group

The fair values of the assets and liabilities identified within the scope of this transaction are shown in the table below:

Fair value recognised on the acquisition date
Tangible assets	4.0
Other financial assets	0.1
Other assets	0.5
Inventories	5.4
Trade receivables	3.4
Deferred tax asset	0.2
Cash and equivalents	6.8
Total Assets	20.4
Interest bearing debt	1.7
Trade payables	3.8
Provisions	1.0
Others liabilities	0.3
Total liabilities	6.8
Net assets	13.5
55% of identifiable net assets	7.4
Goodwill	4.8
Non -controlling interests at the acquisition date	6.1

Values in million euros.

At the acquisition date, the main difference between the fair value of the identified assets and liabilities and their respective book value was related to the accounting of a liability related to the application of IAS 19 - retirement benefits. Goodwill (5.1 M€ at the end of year exchange rate) represents the remaining value that it was not possible to identify in the acquired company and corresponds to synergies and the effect of the complementarity of its activity with Corticeira Amorim. It is not expected that the goodwill recognised in the accounts will be deductible for tax purposes.

During the 2023 financial year (12 months), the VMD Group presented a consolidated turnover of 21.7 M€ (21.1 million CHF). The VMD Group's contribution to Corticeira Amorim's results was as follows: sales: €4.7 M, EBITDA: €0.3 M and EBIT: €0.1 M. The annual results of the VMD Group were as follows: sales: €21.7 million, EBITDA: €4.5 million, EBIT: €3.5 million.

Acquisitions in 2022:

Acquisition of the remaining 50% of Herdade de Rio Frio

On June 24, 2021, Corticeira Amorim, through its holding Amorim Agroflorestal, S.A. (former Amorim Florestal II, S.A.), reached agreement with Banco Comercial Português for the acquisition of 50% of the company Cold River´s Homestead, SA, which holds a set of assets (moveable and immovable assets) attributed to agroforestry operations, which includes a section (3,300 hectares) of that known as Herdade do Rio Frio, located in the district of Setúbal, for the total amount of 14.5 million euros.

On June 15, 2022, Corticeira Amorim, through its holding Amorim Agroflorestal , S.A., acquired the 50% stake in the company Herdade de Rio Frio, S.A. owned by Parvalorem, S.A. In the wake of this acquisition, for a total amount of 14.6 million euros, Corticeira Amorim took over complete ownership of Herdade de Rio Frio, S.A.

Assets and liabilities of the acquired company

The fair values of the assets and liabilities identified within the scope of this transaction are shown in the table below:

The acquisition cost of the stake was 29.1 million euros.

Fair value recognised on the acquisition date
Tangible assets
Land	15.4
Buildings	5.1
Cork oak	0.8
Vines	2.1
Others	0.1
Intangible assets	0.0
Biological asset - Cork	3.3
Biological assets - Others	1.0
Other assets	0.3
Cash and equivalents	1.0
Total Assets	29.2
Total liabilities	0.1
Net assets	29.1
100% of identifiable net assets	29.1
Goodwill	0.0

Values in million euros.

The fair values of the assets and liabilities identified within the scope of this transaction essentially include Herdade do Rio Frio, and were provisionally calculated with reference to December 31, 2022. At the closing of accounts on June 30, 2023, the fair values of the assets and liabilities identified by reference to the acquisition date, with zero goodwill having been determined. In fact, the main difference between the fair value of identified assets and liabilities and their respective accounting value relates to the recognition of biological production assets and consumables initially considered in the fair value of land. Given that there was no adjustment to the value of goodwill that had been provisionally determined, the Group chose not to restate the amounts for 2022.

In 2022, Herdade do Rio Frio's contribution to Corticeira Amorim's consolidated sales was 0.8 M€, 1.7 M€ to EBITDA and 0.8 M€ to EBIT.

The fair value of the stake held in the company at the date of acquisition was 15.3 M€. There were no gains/losses recorded in the remeasurement of the initial 50% stake.

Transaction costs worth 250 K€ were incurred in the acquisition of the company. These costs were recognised under non-recurring results in the 2022 financial year.

Acquisition of SACI Group

As communicated to the market authorities on January 11, 2022, Corticeira Amorim, through its subsidiary Amorim Cork, SGPS, S.A. reached agreement over the acquisition of 50% of the share capital of SACI S.r.l. ("SACI Group"), headquartered in Ivrea (near Turin) for the amount of 48.7 M€. The SACI Group was held, in equal shares, by the Getto (Italy) and Perlich (Germany) families. Made up of 17 companies acting in different sectors, the main SACI Group activity involves the production and commercialisation of muselets, counting on a team of around 340 staff and a presence in over 30 countries.

Corticeira Amorim considers that it controls the SACI Group in keeping with its holding of 50% of the voting rights. This evaluation derives from Corticeira Amorim deploying the responsibilities attributed that enable the management of the relevant activities of the SACI Group. These activities include, among others, the supply chain, the distribution networks and management reporting. This capacity to manage key activities extends to setting the operating and capital budgets and the nomination of managers and major service providers.

The group opted to measure the interests that it does not control by the respective stake held in the assets and liabilities thereby acquired.

These companies were incorporated into the consolidated perimeter on January 1, 2022.

No transaction costs were incurred in the acquisition of the SACI Group.

Assets and liabilities of the acquired group

The fair values of the assets and liabilities identified within the scope of this transaction are shown in the table below:

Fair value recognised on the acquisition date
Tangible assets	25.7
Customer portfolio	5.5
Intangible assets	0.6
Other financial assets	8.7
Other assets	3.0
Inventories	28.8
Trade receivables	28,0
Cash and equivalents	17.6
Total Assets	117.9
Non-controlling interests	6.3
Interest bearing debt	7.5
Trade payables	15.8
Other liabilities	6.5
Deferred tax liabilities	1.5
Income tax	1.2
Total Liabilities	38.7
Net Assets	79.2
50% of identifiable net assets	39.6
Goodwill	9.1
Non-controlling interests at the acquisition date	39.6

Values in million euros.

By reference to the acquisition date (January 11, 2022), the main difference between he fair value of the identified assets and liabilities and the respective book value relates to the accounting of an asset related to the customer portfolio. Regardless of whether they are cancelable or not, customer order histories meet the contractual-legal criteria for asset identification and registration. Even in the absence of contracts, the SACI Group will seek to take advantage of previous interactions with customers to sell them products and services in the future. The differences registered were concentrated into the fair value of the financial assets, the fair value of the assets of the Schneider subsidiary and a provision registered in the accounts of a subsidiary of the SACI Group. The final analysis of the fair value of the assets and liability will be completed twelve months after the date of acquisition. The goodwill presented, with a value of 9.1 M€, represents the remaining value it was possible to identify in the acquired entity and corresponds to the synergies complementary to the activities of Corticeira Amorim. It is not foreseeable that the goodwill recognised in the accounts becomes deductible for fiscal purposes.

In 2022, the contribution of the SACI group to the results of Corticeira Amorim was the following: sale: 117.5 M€, EBITDA: 22.1 M€ and EBIT: 16.3 M€.

Acquisition of OSI

The fair values of the assets and liabilities identified are essentially tangible assets (0.9 M€), intangibles (0.6 M€) and debts to suppliers (0.8 M€).

In accordance with the accounting policies adopted by Corticeira Amorim, the difference (0.4 M€) between the value of the consideration transferred and the fair value of assets and liabilities was recorded in other reserves.

7. SEGMENT REPORT

Corticeira Amorim is organized into the following Business Units: Amorim Florestal (formerly called Raw Materials), Amorim Cork (formerly Cork Stoppers), Amorim Cork Flooring (formerly Floor and Wall Coverings), Amorim Cork Composites (formerly Composite Cork) and Amorim Cork Insulation (formerly Insulation Cork).

The change in nomenclature did not result in the need to re-express comparative numbers.

There are no differences between the measurement of profit and loss and assets and liabilities of the reportable segments, associated to differences in accounting policies or centrally allocated cost allocation policies or jointly used assets and liabilities. For purposes of this Report, the Business approach was selected as the primary segment. This is consistent with the formal organisation and evaluation of business. Business Units correspond to the operating segments of the company and the segment report is presented the same way they are analysed for management purposes by the board of Corticeira Amorim.

The following table shows the main indicators of the business units, and, whenever possible, the reconciliation with the consolidated indicators:

2023	Amorim Florestal	Amorim Cork	Amorim Cork Flooring	Amorim Cork Composites	Amorim Cork Insulation	Corticeira Amorim and Others	Adjustm.	Consolidated
Trade Sales	13,369	747,703	90,171	118,134	15,517	573	0	985,467
Other BU Sales	220,666	11,743	2,045	1,669	2,716	15,986	−254,825	-
Total Sales	234,035	759,446	92,217	119,803	18,233	16,559	−254,825	985,467
EBITDA (*)	23,150	147,722	−7,856	25,134	−1,560	−1,435	−8,171	176,985
Assets (non-current)	98,708	305,114	38,088	57,573	8,411	2,195	39,162	549,251
Assets (current)	268,885	489,539	50,138	57,599	14,128	2,909	−17,223	865,974
Liabilities	81,663	219,314	41,394	44,320	6,642	214,286	7,563	615,182
Capex	10,453	62,625	7,402	11,512	2,268	1,020	0	95,280
Year Depreciation	−5,839	−33,050	−5,910	−5,236	−709	−1,171	0	−51,915
Gains/Losses in associated companies	0	3,164	0	−150	0	−2	0	3,011
2022	Amorim Florestal	Amorim Cork	Amorim Cork Flooring	Amorim Cork Composites	Amorim Cork Insulation	Corticeira Amorim and Others	Adjustm.	Consolidated
Trade Sales	14,428	743,102	127,200	122,137	14,262	261	0	1,021,391
Other BU Sales	190,011	10,891	4,775	2,436	1,709	6,067	−215,889	-
Total Sales	204,440	753,993	131,975	124,573	15,971	6,328	−215,889	1,021,391
EBITDA (*)	21,637	126,256	−1,694	21,699	872	−1,622	−3,193	163,954
Assets (non-current)	94,227	273,011	36,684	53,536	6,874	862	27,472	492,666
Assets (current)	185,474	455,979	64,091	56,078	10,932	13,712	−9,615	776,650
Liabilities	50,459	180,136	37,779	34,081	4,233	16,924	200,776	524,390
Capex	31,870	48,488	5,932	9,548	2,455	660	0	98,953
Year Depreciation	−5,294	−31,620	−5,982	−4,977	−580	−187	0	−48,640

Values in thousand euros.

Adjustments = eliminations inter-BU and amounts not allocated to BU.

(*)EBITDA = Profit before net financing costs, depreciation, non-controlling interests, income tax and non-recurring results.

Provisions and asset impairments were considered the only relevant non-cash material cost.

The decision to report EBITDA figures (excluding non-recurring operational results – see note 31, which due to its materiality or nature could distort Corticeira Amorim's financial performance, as well as its comparability), allows a better comparison of the different BU performances, disregarding the different financial situations of each BU. This is also coherent with the existing Corporate Departments, as the Financial Department is responsible for the bank negotiations, being the tax function the responsibility of the Holding Company.

Amorim Cork main product is the different types of existing cork stoppers. The main markets are the bottling countries, from the traditional ones like France, Italy, Germany, Spain and Portugal, to the new markets like USA, Australia, Chile, South Africa and Argentina.

Amorim Florestal is, by far, the most integrated in the production cycle of Corticeira Amorim, with 90% of its sales to others BU, in particular the sale of cork boards and disks to the Amorim Cork.

The remaining Business Units produce and sell a wide range of products that use the raw material left over from the production of stoppers, as well as the cork raw material that is not susceptible to be used in the production of stoppers. Main products are cork floor tiles, cork rubber for the automotive industry and anti-vibration systems, expanded agglomerates for insulation and acoustic purposes, technical agglomerates for civil construction and shoe industry, as well as granulates for agglomerated, technical and champagne cork stoppers.

Major markets for Amorim Cork Flooring, Amorim Cork Insulation and for Amorim Cork Composites are in Europe. Major production sites are in Portugal, where most of the invested capital is located. Products are distributed in practically all major markets through a fully owned network of sales companies. About 70% of total consolidated sales are achieved through these companies.

Capex was concentrated in Portugal. Assets in foreign subsidiaries, particularly the items of tangible fixed assets, inventories and customers, totalise 442 M€, and are mostly composed by inventories (188 M€) and trade receivables (140 M€).

In non-current assets, it is important to note the 323 M€ (2022: 293 M€) of tangible fixed assets, 2.2 M€ (2022: 4 M€) of property investment, and 11 M€ (2022: 13.4 M€) of intangible assets, located in Portugal.

Sales distribution by market

Markets		2023	2022
European Union	675,597	68.6%	715,936	70.1%
From which: Portugal	66,843	6.8%	76,703	7.5%
Other European countries	19,599	2.0%	24,766	2.4%
USA	161,512	16.4%	149,571	14.6%
Other American countries	64,409	6.5%	71,108	7.0%
Australasia/Asia	50,116	5.1%	45,586	4.5%
Africa	14,235	1.4%	14,425	1.4%
TOTAL	985,467	100%	1,021,391	100%

Values in thousand euros.

The value of sales relates in its entirety, as in 2022, to contracts covered by IFRS 15 - Revenue from contracts with customers.

Amorim Cork implements continuous improvement processes aimed at achieving profitability gains.

8. TANGIBLE ASSETS

	Land and Buildings	Machinery	Other	Tangible Fixed Assets in Progress	Total Tangible Assets
Gross value	296,569	519,249	40,086	20,838	876,743
Depreciation and impairments	−179,984	−381,013	−31,756	0	−592,753
Opening balance (Jan 1, 2022)	116,586	138,236	8,330	20,838	283,990
Perimeter entry	35,961	12,365	3,181	1,548	53,055
Increase	33,035	20,814	2,796	38,735	95,379
Period deprec. and impairments	−7,321	−30,402	−3,175	0	−40,898
Sales and other decreases	355	−321	−139	−759	−864
Transfers and reclassifications	4,160	6,333	−957	−8,290	1,245
Translation differences	772	−18	−191	117	680
Gross value	380,562	593,792	54,791	52,189	1,081,334
Depreciation and impairments	−197,015	−446,786	−44,945	0	−688,745
Closing balance (Dec 31, 2022)	183,547	147,006	9,846	52,189	392,588
Gross value	380,562	593,792	54,791	52,189	1,081,334
Depreciation and impairments	−197,015	−446,786	−44,945	0	−688,745
Opening balance (Jan 1, 2023)	183,547	147,006	9,846	52,189	392,588
Perimeter entry	3,727	150	264	0	4,141
Increase	12,379	40,045	3,657	36,071	92,152
Period deprec. and impairments	−7,522	−32,489	−3,717	0	−43,727
Sales and other decreases	−290	−759	−91	−476	−1,616
Transfers and reclassifications	3,168	40,394	4,495	−51,617	−3,560
Translation differences	−833	−120	−721	−7	−1,680
Gross value	399,510	670,248	60,341	36,160	1,166,259
Depreciation and impairments	−205,334	−476,020	−46,608	0	−727,962
Closing balance (Dec 31, 2023)	194,176	194,227	13,734	36,160	438,297

Values in thousand euros.

Impairment losses recognised in 2022 and 2023 were recognised on the "Depreciation" line in the consolidated income statement by nature.

Expenses to place the assets in the required location and condition related with tangible fixed assets had no impact.

In other tangible fixed assets, biological assets for production with a net value of 2,993 K€ are included, mainly consisting of vines and cork oak from Herdade do Rio Frio.

No interest was capitalised during the period.

9. INTANGIBLE ASSETS AND GOODWILL

	Intangible Assets	Goodwill
Gross value	30,239	9,946
Depreciation and impairments	−12,974	−103
Opening balance (Jan 1, 2022)	17,266	9,843
Perimeter entry	7,289	9,125
Increase	3,545	0
Period deprec. and impairments	−5,258	0
Sales and other decreases	−290	0
Transfers and reclassifications	−662	0
Translation differences	97	−94
Gross value	44,551	28,856
Depreciation and impairments	−22,564	−9,982
Closing balance (Dec 31, 2022)	21,987	18,874
Gross value	44,551	28,856
Depreciation and impairments	−22,564	−9,982
Opening balance (Jan 1, 2023)	21,987	18,874
Perimeter entry	0	0
Increase	2,482	4,836
Period deprec. and impairments	−6,427	−98
Sales and other decreases	−180	0
Transfers and reclassifications	196	0
Translation differences	−39	261
Gross value	46,958	33,847
Depreciation and impairments	−28,940	−9,974
Closing balance (Dec 31, 2023)	18,018	23,872

Values in thousand euros.

Intangible Assets essentially include software, autonomous product development projects and innovative solutions, and customer portfolio acquired.

With the exception of goodwill, there are no intangible assets of indefinite life.

Detail of goodwill according to the following table:

2022	Opening balance	Increase	Decrease	Reclassification Transalation	differences	End balance
Bourrassé	8,431					8,431
SACI Group	0	9,125			−94	9,031
Elfverson	1,314					1,314
Korkkitrio	98					98
Goodwill	9,843	9,125	0	0	−94	18,874

Values in million euros.

2023	Opening balance	Increase	Decrease	Reclassification Transalation	differences	End balance
Bourrassé	8,431					8,431
SACI Group	9,031				22	9,053
VMD Group	0	4,836			239	5,075
Elfverson	1,314					1,314
Korkkitrio	98		−98			0
Goodwill	18,874	4,836	−98	0	261	23,872

Values in thousand euros.

As stated in note 2 b), impairment tests are carried out annually. In the tests, cash-flows were designed, based on the budget and plans approved by management. The growth assumptions took into account the expected growth of each company's business, essentially in the wine, champagne and sparkling wine market, as well as the evolution of the subsidiaries' market share in this business.

In the case of Bourrassé, the tests used operational cash-flow growth rates of 7.3% for the period 2024-2026 and 1.4% for the following years. In the case of Saci, the tests used operational cash-flow growth rates of 1.3% for the period 2024-2026 and 2.0% for the following years. In the case of Elfverson, operational cash-flow growth rates of 37.3% were used in the tests for the period 2024-2026 and 2% for the following years.

For the impairment test of the VMD Group, the 2024 budget was considered (with a 36% growth in operating income) without growth in cash-flows in 2025 and 2026, with a growth rate of 1.8% being considered for the periods following.

The discount rate used in the tests described above was 7.3%. Sensitivity analyses (adjusting the discount rate by an additional 10% and the perpetuity growth rate by an additional 20%) would not imply recording an impairment in the accounts for the four cashgenerating units under analysis.

10. BIOLOGICAL ASSETS

	Biological Assets
Gross value	62
Depreciation and impairments	0
Opening balance (Jan 1, 2022)	62
Perimeter entry	867
Increase	0
Period deprec. and impairments	0
Sales and other decreases	0
Transfers and reclassifications	−15
Translation differences	0
Gross value	913
Depreciation and impairments	0
Closing balance (Dec 31, 2022)	913
Gross value	913
Depreciation and impairments	0
Opening balance (Jan 1, 2023)	913
Fair value increase	315
Period deprec. and impairments	0
Sales and other decreases	−109
Transfers and reclassifications	5,223
Translation differences	0
Gross value	6,342
Depreciation and impairments	0
Closing balance (Dec 31, 2023)	6,342

Values in thousand euros.

The detail of the value of biological assets, as of December 31, 2023, is as follows:

	Cork	Cattle	Total
Opening balance (Jan 1, 2022)	62		62
Perimeter entry		867	867
Perimeter entry	-15		-15
Closing balance (Dec 31, 2022)	47	867	913
Opening balance (Jan 1, 2023)	47	867	913
Fair value increases/decreases	315	0	315
Sales and other decreases	0	-109	-109
Transfers and reclassifications	5,223	0	5,223
Closing balance (Dec 31, 2023)	5,584	758	6,342

Values in thousand euros.

On August 4, 2022, the date after the concentration of business activity, Herdade de Rio Frio acquired a 1855-hectare plot of land held by Novo Banco, for the value of 22.3 M€. From the value of this land, in 2023 it was identified that part of the fair value of the land included consumable biological assets related to cork oak and cork, worth €5,223, which combined with the completion of accounting for the acquisition of Herdade do Rio Frio (Note 6), explains the reclassification detailed above.

During the year ended December 31, 2023, income was recognised with changes in the fair value of biological assets in the amount of 315 K€, under the heading Other income and gains.

With regard to the cork oak, the biological asset with the greatest importance in the financial statements presented, in 2023 30,159 arrobas of cork were extracted.

As of December 31, 2023, there are no biological assets whose ownership is restricted or which are pledged as collateral for liabilities as well as commitments relating to the development or acquisition of biological assets.

Fair value measurement

According to accounting standards, a fair value hierarchy is established that classifies the data to be used in fair value measurement techniques into three levels. At the level of biological assets, level 3 data is considered: unobservable data regarding the asset or liability.

When measuring the fair value of cork trees, around 351 thousand arrobas are considered at the beginning and end of the year. The output from the 2023 extraction was around 30 thousand arrobas for the Company.

Biological assets are measured at their fair value less estimated costs at the point of sale. The respective fair value is determined based on the present value of discounted cash flows method. The following assumptions were considered:

• Productivity of the Herdade's history;
• Average sales price for the quality of cork deducted from extraction costs;
• Discount rate: 3%.

Government subsidies associated with obtaining biological assets

During the year ended December 31, 2023, the Company obtained a subsidy from the Government related to biological assets, in the amount of 206 K€, within the scope of the Environmental Fund.

The granting of Government subsidies implies compliance with certain conditions, namely:

• Execution in accordance with the investment headings approved in each operation;
• Have certified forest management within a maximum period of five years after signing the subsidy award contract;
• Comply with good forestry practices contained in the respective regulations, without prejudice to compliance with other environmental obligations imposed by law;
• Comply with the Forest Management Plan;
• Start and complete the physical execution of the operation within the deadlines established in the regulations.

11. RIGHT OF USE

	Right of use
Gross value	13,114
Depreciation and impairments	−6,941
Opening balance (Jan 1, 2022)	6,173
Increase	1,343
Period deprec. and impairments	−2,221
Sales and other decreases	−39
Transfers and reclassifications	−692
Translation differences	1
Gross value	12,610
Depreciation and impairments	−8,045
Closing balance (Dec 31, 2022)	4,564
Gross value	12,610
Depreciation and impairments	−8,045
Opening balance (Jan 1, 2023)	4,564
Increase	676
Period deprec. and impairments	−1,244
Sales and other decreases	−109
Transfers and reclassifications	1,172
Translation differences	−14
Gross value	13,584
Depreciation and impairments	−8,538
Closing balance (Dec 31, 2023)	5,046

Values in thousand euros.

12. INVESTMENT PROPERTY

	Investment Property
Gross Value	22,121
Depreciation and impairments	−16,810
Opening balance (Jan 1, 2022)	5,311
Perimeter entry	0
Increase	0
Period deprec. and impairments	−39
Sales and other decreases	−2,038
Transfers and reclassifications	731
Translation differences	0
Gross Value	13,936
Depreciation and impairments	−9,970
Closing balance (Dec 31, 2022)	3,966
Gross Value	13,936
Depreciation and impairments	−9,970
Opening balance (Jan 1, 2023)	3,966
Perimeter entry	0
Increase	298
Period deprec. and impairments	−73
Sales and other decreases	−1,960
Transfers and reclassifications	10
Translation differences	0
Gross Value	6,403
Depreciation and impairments	−4,163
Closing balance (Dec 31, 2023)	2,241

Values in thousand euros.

The amount of 2,241 K€ in Investment Property (December 2022: 3,966 K€), is mainly related to land and buildings that are not used in production.

The fair value of the Investment Property related to the lands corresponds to the amount recorded in the accounts.

At the end of the year, management analysed these assessments and considered that they were still up to date. These properties are not generating income and conservation and repair costs are insignificant.

Process of mixing cork with other materials resulting from circular economy practices.

13. INVESTMENTS IN ASSOCIATES AND JOINT-VENTURES

2023	2022
32,083	42,401
−166	−15,262
3,011	4,846
−1,788	−1,140
−510	1,195
0	43
32,630	32,083
3,011	4,846
3,011	4,846

Values in thousand euros.

The associates and joint-ventures are entities through which the Group operates in the markets in which they are based, acting as distribution channels of products.

The book values are described by subsidiary:

2023	Share in net assets	Goodwill	Total	Contribution to net income
Trescases	6,319	1,715	8,034	726
Wine Packaging & Logistic	1,133	0	1,133	0
Corchos Argentina	7,582	0	7,582	1,400
Vinolok	15,677	0	15,677	1,037
Cold River´s Homestead	0	0	0	0
Others	205	0	205	−153
End Balance	30,915	1,715	32,630	3,011

Values in thousand euros.

2022	Share in net assets	Goodwill	Total	Contribution to net income
Trescases	6,093	1,715	7,808	962
Wine Packaging & Logistic	1,214	0	1,214	0
Corchos Argentina	6,182	0	6,182	1,320
Vinolok	16,329	0	16,329	2,832
Cold River´s Homestead	0	0	0	−291
Others	550	0	550	24
End Balance	30,368	1,715	32,083	4,846

Values in thousand euros.

A summary of the respective financial information is presented below:

2023	Trescases (50%)	Corchos Argentina (50%)	Vinolok (50%)	Wine Packaging & Logistic (50%)
	K €	K €	K CZK	K CLP
Current assets	24,828	17,817	288,795	1,414,429
Non-current assets	1,680	1,256	574,102	5,776,220
Assets	26,508	19,073	862,897	7,190,649
Equity	15,260	16,540	775,219	3,223,939
Current liabilities	11,247	2,533	36,458	779,650
Non-current liabilities	0	0	51,220	3,187,060
Sales	43,004	15,833	391,133	2,328,664
Operating profit	3,596	2,985	75,231	−192,050
Net income	2,711	3,626	49,805	−227,721
Comprehensive income	2,711	3,626	49,805	−227,721

2022	Trescases (50%)	Corchos Argentina (50%)	Vinolok (50%)	Wine Packaging & Logistic (50%)
	K €	K €	K CZK	K CLP
Current assets	21,783	11,823	361,397	1,053,395
Non-current assets	1,425	1,385	577,958	6,006,542
Assets	23,207	13,208	939,354	7,059,937
Equity	13,549	12,363	787,413	3,451,659
Current liabilities	9,327	845	113,950	815,924
Non-current liabilities	0	0	37,990	2,792,354
Sales	42,629	16,857	554,068	2,629,064
Operating profit	2,900	3,138	377,660	82,256
Net income	2,173	2,709	139,133	108,285
Comprehensive income	2,173	2,709	139,133	108,285

In addition to the above, the Group has significant influence on a set of other individually immaterial associates.

14. OTHER FINANCIAL ASSETS

	2023	2022
Hedge accounting assets	189	1,141
VAT	24,948	23,639
Stamp tax/VAT - special payment (PERES)	1,854	2,051
Stamp tax/VAT - special payment (PERES) impairment	−1,436	−2,051
Investments in funds, capitalisation insurance and similar	6,192	8,396
Others	9,979	8,798
Other current financial assets	41,726	41,973

Values in thousand euros.

Investments in funds, capitalisation insurance and similar essentially refer to SACI Group's capitalisation insurance. These insurance policies (insurance policies associated with investment funds) are short-term investments, which can be sold when necessary without any particular constraint.

Regarding the payment under PERES of the 2010 stamp tax, at the end of the year Corticeira Amorim was notified of the Supreme Administrative Court's ruling considering the judicial challenge presented to be fully valid. In this way, the impairment amounting to 417 K€ was reversed.

Assets included in other non-current financial assets (December 31, 2023: 2,097 K€, December 31, 2022: 1,945 K€) refer to financial assets at fair value through profit or loss, including essentially equity instruments. They are measured at fair value and when it is estimated that there are no significant differences in relation to the cost this is maintained. The assets were acquired with the main purpose of sale or resale, as appropriate, and in certain cases ensuring the maintenance and survival of entities that Corticeira Amorim considers partners for its business. The effective management of the underlying operations and assets continues to be exclusively provided by the partners, serving the financial participation as a mere "guarantee" of the investment made.

As of December 31, 2023, and 2022, there were no overdue amounts of VAT.

15. DEFERRED TAX / INCOME TAX

• Deferred tax and income tax

The difference between the tax due for the current period and prior periods and the tax already paid or to be paid of said periods is booked as deferred income tax in the consolidated income statement and amounts to +9,637 K€ (31/12/2022: + 13,960 K€).

On the consolidated statement of financial position this effect, excluding tax contingencies, amounts to 20,203 K€ (31/12/2022: 13,235 K€) as asset, and to 42,715 K€ (31/12/2022: 44,014K€) as liability.

Deferred tax related with items directly registered in equity was 95 K€ (credit balance) and relates to hedge accounting. No other deferred tax values related with other equity movements were booked.

It is conviction of the Board that, according to its business plan, the amounts registered in deferred tax assets will be recovered.

	2023	2022
Related with Inventories and third parties	12,261	8,540
Related with tax losses carry forward	2,541	1,412
Related with Fixed Tangible Assets / Intang. / Inv. Prop	312	386
Related with other deductable temporary differences	5,089	2,897
Deferred Tax Assets	20,203	13,235
Related with Fixed Tangible Assets	2,797	2,927
Related with other taxable temporary differences	6,203	4,915
Tax contingencies	33,714	36,172
Deferred Tax Liabilities	42,715	44,014
Current Income Tax	−30,539	−19,899
Deferred Income Tax	9,637	13,960
Income Tax	−20,903	−5,939

Values in thousand euros.

The difference between the variation in the financial position (net of + 8,267 K€) and the value recognised in income statement (+ 9,637 K€) is justified by the exchange rate effect on the balance sheets of subsidiaries non-euro and by the variation in the amount of deferred taxes relating to other comprehensive income.

Accounting effective tax rate

Following chart explains the effective income tax rate, starting from the original income tax rate of most of Portuguese companies:

Income Tax Reconciliation	2023	2022
Income Tax - Legal	21.0%	21.0%
Effect of additional tax rates over base rate (Portugal)	4.9%	3.7%
Effect of tax benefits	−9.5%	−9.0%
Effect of provisions for contingencies	−2.0%	−9.8%
Effect of non-taxable gains and losses	0.1%	0.1%
Effect of different tax rates (foreign subsidiaries)	1.6%	0.7%
Effect of recognising/non-recognising of differed taxs (foreign subs.)	0.2%	−0.1%
Equity method	−0.5%	−0.9%
Effect of tax benefit related to subsidiaries issued shares	−0.0%	−0.0%
Effect of excess tax estimate and others	1.5%	−0.5%
Income tax - effective tax rate (1)	17.3%	5.1%

(1) Income Tax/Pre-tax Profit

The comparable effective rate for 2022 included the impact of the judgment of the North Administrative Central Court in the 2007 IRC case which implied the cancellation of the provision in the amount of 8.2 M€ and the recognition of an asset received from the State (mainly due to payments of Peres and receipt of interest) in the amount of 3.2 M€.

If we exclude this effect, the effective rate for 2022 would be 14.8%, which compares to the effective rate of 17.3% for 2023. The highest level of additional taxation in Portugal (resulting from the increase in the tax base in the surcharges component) and in other countries it is the main factor justifying the increase in the effective rate from 14.8% to 17.2%.

During the year, the amount of 27.1 M€ (2022: 13.1 M€) for income tax was paid. Of this amount, the amount of 6.5 M€ was paid in Portugal in the R.E.T.G.S. (2022: 0.7 M€).

Corticeira Amorim and a large group of its Portuguese subsidiaries are taxed since January 1, 2001, as a group special regime for tax purposes (RETGS), as according to article 69, of the income tax code (CIRC).

According to law, tax declarations for Corticeira Amorim and its Portuguese subsidiaries are subject of revision and possible correction from tax authorities generally during the next four years, except in specific situations provided for by law.

No material effects in the financial statements, are expected by the Board of Corticeira Amorim and subsidiaries from the revisions of tax declarations that will be held by the tax authorities.

The tax rate applicable to Portuguese subsidiaries is 21%, plus municipal and state surcharges.

The activity of the subsidiaries of the Group located outside Portugal is subject to the general tax regime in the respective countries and states. During the year 2023 there were no significant changes in the tax rate applicable to subsidiaries in countries where the Group has significant operations.

The only deferred tax amount related to items credited / debited directly in equity is related to the fair value of hedging instruments and amounts to -95 K€ (-127 K€ in 2022).

The amount of deferred taxes, excluding tax contingencies, is essentially related to temporary differences that can be realised in the short term. The recovery of tax assets is based on future forecasts for normal rates of return for companies and growth in line with those of Business Units.

Tax losses carried forward are, essentially related with foreign subsidiaries. Total amounts to 15.6 M€, of which around 6.0 M€ are considered to be utilised. This report has a term of use beyond 2025.

Tax relating to components of other comprehensive income is as follows:

2023	before tax	tax	after tax
Items that could be reclassified through income statement:
Change in derivative financial instruments fair value	−644	95	−549
Change in translation differences	−3,579	0	−3,579
Share of other comprehensive income of investments accounted for using the equity method	−510	0	−510
Other comprehensive income	−286	0	−286
Other comprehensive income	−5,019	95	−4,924
2022	before tax	tax	after tax
Items that could be reclassified through income statement:
Change in derivative financial instruments fair value	859	−127	732
Change in translation differences	2,148	0	2,148
Share of other comprehensive income of investments accounted for using the equity method	1,238	0	1,238
Other comprehensive income	246	0	246
Other comprehensive income	4,490	−127	4,363

Values in thousand euros.

Provisions for tax contingencies

Provisions for tax contingencies related to income tax ended with a value of 33.7 M€ (31.12.2022: 36.2 M€). During the year, the provisions in the statement of financial position decreased by 2.5 K€. In 2023, it is worth highlighting the reversal of a provision totaling 1.5 M€, relating to a Spanish subsidiary, whose report was validated by the tax authorities.

Corticeira Amorim's claims are pending, both in the judicial phase and in the non-contentious phase, and which may adversely affect Corticeira Amorim, refer to the financial year 2015, however, they are covered by provisions. The most recent fiscal year analysed by Portuguese tax authorities was 2020.

At the end of each year, an analysis of the tax cases is made. The procedural development of each case is important to decide new provisions, or reverse or reinforce existing provisions. Provisions correspond to situations that, for its procedural development or for doctrine and jurisprudence newly issued, indicate a probability of an unfavorable outcome for Corticeira Amorim and, if that happens, a cash outflow can be reasonably estimated. Note that during the year there were no developments worthy of note in the processes mentioned above. There is only one tax process at the closing date of the 2023 accounts that is open, totaling 7 K€, which is fully provisioned.

The most significant value of tax provisions relates to tax benefits to be claimed in relation to 2023 and requested in previous years. The certification requirement by ANI of SIFIDE projects, the requirement for maintenance of jobs over five years in RFAI projects as well as other constraints to the realisation of benefits, has led Corticeira Amorim to record provisions in order to take account of future breaches of such requirements. It should be noted that the determination of the tax benefits cannot be concluded, since its constraints extend over several years, in particular as regards the maintenance of jobs. The main increase in the provision for tax contingencies is related to the provision to cover the tax benefits mentioned, having increased by 7.9 M €. The reduction in the provision for tax benefits for the year was 8.6 M€. This provision at the end of 2022 has a value of 33.6 M€.

There are no tax proceedings that have not been provisioned, thus, contingent liabilities are zero.

Corticeira Amorim´s has a number of processes underlying the claim of tax amounts with the Tax Authority, namely payments relating to autonomous taxation, inspection fees and tax benefits. The value of these processes amounts to 0.8 M€, which is not recorded as part of its assets. Total contingent assets amount to 6.0 M€ (including amounts paid under the RERD and PERES).

Pillar 2 – Calculation of supplementary tax

The Group falls within the scope of the BEPS 2.0 Pillar Two Global Anti-Base Erosion Model Rules (GloBE MR), as it is a multinational group of companies with annual revenues equal to or exceeding Euro 750,000,000 in at least two of the four fiscal years immediately preceding the 2024 fiscal year.

Given that Pillar Two legislation has not yet been transposed into Portuguese law as of the reporting date (Directive No. 2022/2523 of December 14, 2023, should have been transposed by December 31, 2023), and that it will only have effective application in the fiscal year commencing on January 1, 2024, the Group, as of December 31, 2023, has no current tax exposure related to the adoption of Pillar Two. It is also worth mentioning that the Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided for in the amendments to IAS 12 issued in May 2023.

Notwithstanding the foregoing, the Group is assessing its exposure to Pillar Two legislation for when it comes into force, considering the potential liability for an additional tax ("top-up tax") corresponding to the difference between the GloBE effective tax rate by jurisdiction and the minimum rate of 15%.

In this regard, although in some jurisdictions the average effective rate may be lower than 15%, considering that transitional safe harbour and specific adjustments provided for in Pillar Two legislation may result in different effective tax rates compared to those calculated in accordance with paragraph 86 of IAS 12 (which determines that the average effective rate is the tax expense [income] divided by accounting profit), the Group, based on the analyses performed, considers that it is not exposed to the payment of any material additional tax.

Due to the complexities in the application of the legislation and in calculating GloBE income, the quantitative impact of European and national legislation to be enacted is not yet reasonably estimable. The Group is currently working towards the correct implementation of this legislation. Nevertheless, based on the analyses conducted so far, a material impact on the payment of additional tax is not expected.

• Income tax – statement of financial position

	2023	2022
Income tax-minimum advances	395	4
Income tax-advances/to be recovered	6,714	10,109
Income tax-with holding	227	40
Income tax-special payment (RERD)	637	2,093
Income tax-special payment (RERD) impairment	−637	−2,093
Income tax-special payment (PERES)	3,709	5,330
Income tax-special payment (PERES) impairment	−3,094	−3,113
Income tax (assets)	7,951	12,370
Income tax-Estimation and others	3,946	6,661
Income tax (liabilities)	3,946	6,661

Values in thousand euros.

In 2013, Corticeira Amorim made the payment instituted by DL 151-A / 2013 (RERD) in the amount of 4.3 M€, a payment that does not imply the abandonment by Corticeira Amorim of defending the respective processes. In 2023, the final decision of another process was won by Corticeira Amorim, which implied the receipt of 1.5 M€ The amount that remains open for ongoing proceedings paid under the RERD is 0.6 M€.

At the end of 2016, a special Plan for the Reduction of Indebtedness to the State (PERES) was approved by Decree-Law no. Corticeira Amorim decided to adhere to part of the eventual fiscal responsibilities to that measure. In December, that year, approximately 7.4 M€ were paid in respect of Stamp Tax / VAT (2 M€) and Income Tax (IRC) in the amount of 5.4 M€. In 2023, 1.6 M€ was received from the amounts paid in PERES, the impairment of which was reversed in 2022. The remaining payments remain open.

To be noted that Corticeira Amorim had no outstanding debts to the social security and tax authorities, wherein the amounts in question concern those subject to court litigation. The processes that were chosen for adhesion to the special plan were old cases, wherein the amounts of interest due on late payments and fines to be paid, would be high in the event of losing the litigation.

RERD and PERES allowed for the payment of the capital without any payment regarding late payment interests and other costs. Due to the fact that adhesion to RERD and PERES does not imply a mandatory abandonment of the court cases and those procesedings are still in court, Corticeira Amorim will continue to fight for its rights.

The liability amount under this account heading includes the estimate of income tax payable by some foreign subsidiaries when the tax return for the year 2023 is presented.

16. INVENTORIES

	2023	2022
Goods	26,820	25,022
Raw materials	332,482	225,144
Finished and semi-finished goods	145,501	145,267
Work in progress	26,391	20,177
Finished and semi-finished goods impairments	−12,774	−8,080
Raw materials impairments	−1,923	−2,300
Inventories	516,497	405,229

Values in thousand euros.

Impairment losses	2023	2022
Initial Balance	10,380	7,879
Increases	6,225	3,260
Decreases	1,907	759
End Balance	14,698	10,380

Values in thousand euros.

Raw materials essentially reproduction cork ("amadia" cork) and virgin cork from pruning the tree ("falca" cork) (Amorim Florestal) and the finished products essentially include a diversity of types of cork stoppers (Amorim Cork), coatings (Amorim Cork Flooring) and composite products (Amorim Cork Composites).

17. TRADE RECEIVABLES

18. OTHER ASSETS

	2023	2022
Gross amount	213,323	216,821
Impairments	− 10,243	− 9,029
Trade receivables	203,080	207,792
Impairment losses	2023	2022
Initial balance (reported)	9,029	9,668
Increases	5,952	3,741
Decreases	− 4,826	− 4,097
Others	88	− 283
End Balance	10,243	9,029

	2023	2022
Accrued income	657	1,218
Advances to suppliers	18,151	18,923
Deferred costs	3,128	3,979
Other current assets	21,937	24,121

Values in thousand euros.

Other non-current debtors include advances to suppliers of 1,895 K€ (December 2022: 2,509 K€), which will only take place over 12 months.

Values in thousand euros.

Increases and decreases were recognised under the account heading, impairment of assets, in the income statement.

At the end of each period, Trade receivables credit quality is analysed. As a result of the adoption of IFRS 9 to the balances up to 90 days, an expected credit loss is recognised. From 90 to 120 days a 30% impairment register is considered and from 120 to 180 days 60%. Over 180 days as well as all doubtful balances are fully impaired. These rules do not overlap the need for analysis of specific cases.

Due and past due balances are as follows:

	2023	2022
Due	157	164
Past due between 0 and 90 days	44	45
Past due between 90 and 120 days	4	3
Past due between 120 and 180 days	3	2
Doubtful and past due over 180 days	5	4
	213	217

Values in millions euros.

Customised cork stoppers not only serve a functional purpose by preserving the quality of the beverage, but also act as a branding tool that enhances the overall appeal of the product.

© Pedro Sadio & Maria Rita ©that image, 2013

Machining at Amorim Cork Composites of expanded cork boards from Amorim Cork Insulation.

19. CASH AND CASH EQUIVALENTS

	2023	2022
Cash	524	395
Bank balances	61,046	76,326
Term deposits	11,752	6,109
Others	72	2,038
Cash and cash equivalents as for stament of financial position	73,394	84,867
Overdrafts	−86,263	−49,527
Cash and cash equivalents as for cash flow statement	−12,869	35,341

1. CAPITAL AND RESERVES

• Share Capital

In the year end, the share capital is represented by 133,000,000 ordinary registered shares, conferring dividends, with a par value of 1 euro.

The Board of Directors may decide to increase the share capital, on one or more occasions, in the modalities permitted by law, up to the amount of 250,000,000 euros.

Values in thousand euros.

• Treasury stock

As of December 31, 2023, Corticeira Amorim held no treasury stock.

No transactions were registered during 2023.

• Legal reserve and share premium

Legal reserve and share premium are under the legal reserve rule and can only be used for (art. 296 CSC -Portuguese commercial law):

• Offset losses in the financial position that cannot be offset by the use of other reserves;
• Offset losses of prior year that cannot be offset by the profit of the year nor the use of other reserves;
• Incorporation in share capital.
• The amounts specified in the account headings of legal reserve and share premium derive from Corticeira Amorim, S.G.P.S., S.A..

• Other reserves

Value is composed from other reserves account and prior year's results of Corticeira Amorim, S.G.P.S., S.A. books, as well as nondistributed cumulative results of Corticeira Amorim, S.G.P.S., S.A. subsidiaries.

• Dividends

At the General Meetings of Corticeira Amorim, held on 2023 (28 April 2023 and 4 December 2023), distributions of dividends equivalent to 0.29 euros per share (0.2 euros and 0.09 euros, respectively), were approved. Payments were made on May 15, 2023 and December 20, 2023.

	2023	2022
Approved dividends	38,570	38,570
Dividends paid	38,570	38,570

Values in thousand euros.

Earnings per share

As of December 31, 2023 and 2022, there are no dilutive effects on the number of shares outstanding.

21. NON-CONTROLLING INTEREST

	2023	2022
Initial Balance	79,339	27,336
In	7,833	51,369
Out	−1,452	−6,378
Results	11,239	12,238
Dividends	−5,493	−5,499
Exchange Differences	−1,596	276
Others	−35	−2
End Balance	89,835	79,339

Values in thousand euros.

The amount of dividends corresponds to the amounts paid by the entities to non-controlling interests.

Non-controlling interests increased compared to the same period last year, reflecting the entry into the perimeter of the VMD Group, it should be noted that the entry into the perimeter in the previous year was due to the SACI Group.

		2023		2022
	Balance Sheet	Net Income	Dividends paid	Balance Sheet	Net Income	Dividends paid
Amorim Bartop	3,333	−7	1,457	2,797	326	1,088
Amorim Top Series	4,262	2,659	0	3,603	2,680	0
Francisco Oller	807	−80	0	887	20	0
Industria Corchera	8,902	728	430	9,242	1,087	2,896
Elfverson	4,596	33	0	4,544	191	0
Trefinos	2,849	800	364	2,413	672	182
Victor y Amorim	1,437	730	500	1,207	513	0
SACI Group	53,597	5,094	1,378	50,689	5,810	610
VMD Group	6,320	27	0	0	0	0
Others	3,734	1,282	1,364	3,958	939	723
End Balance	89,835	11,239	5,493	79,339	12,238	5,499

Values in thousand euros.

The main financial indicators as they result from the statutory accounts are as follows:

2023	VMD Group	SACI Group	Trefinos	Francisco Oller	Elfverson	Amorim Bartop	Amorim Top Series	Industria Corchera	Victor y Amorim
	K CHF	K €	K €	K €	K SEK	K €	K €	K CLP	K €
Current assets	14,363	93,701	28,519	13,851	36,005	4,055	30,650	16,215,282	4,051
Non-current assets	7,558	39,114	21,173	25,401	30,717	21,251	7,591	8,312,622	1,255
Assets	21,921	132,815	49,692	39,252	66,723	25,305	38,241	24,527,903	5,306
Total Equity	17,771	100,553	31,780	25,628	30,325	12,016	23,005	17,387,747	2,875
Current liabilities	2,758	30,488	15,562	10,135	9,916	4,329	13,546	5,554,316	2,273
Non-current liabilities	1,392	1,773	2,350	3,489	26,482	8,960	1,690	1,585,841	159
Sales	21,059	110,092	68,234	26,566	100,060	-	66,230	17,471,841	10,359
Operating profit	3,437	18,000	11,847	−103	5,277	7,997	14,953	1,747,319	1,466
Net Income	2,852	7,560	8,900	−273	5,225	7,971	11,096	1,441,640	1,464
Comprehensive income	2,852	7,560	8,900	−273	5,225	7,971	11,096	1,441,640	1,464
Cash flow from operating activities	5,602	8,001	14,795	2,754	5,793	55	11,803	2,050,935	1,550
Cash flow from investing activities	−10	−1,634	−6,901	−3,395	−7,808	−1,044	−2,044	−509	−462
Cash flow from financing activities	1,652	−1,647	−4,501	766	−207	995	−9,063	−879,888	−949
Net cash flow	7,244	4,719	3,393	125	−2,223	5	696	1,170,538	138

Values in thousand euros.

2022	SACI Group	Trefinos	Francisco Oller	Elfverson	Amorim Bartop	Amorim Top Series	Industria Corchera	Victor y Amorim
	K €	K €	K €	K SEK	K €	K €	K CLP	K €
Current assets	91,774	27,395	14,514	36,131	1,719	35,876	14,353,698	3,740
Non-current assets	40,670	16,670	23,481	26,651	12,111	6,476	8,517,307	873
Assets	132,445	43,112	37,994	62,782	13,829	42,352	22,871,005	4,614
Total Equity	95,043	26,920	25,953	24,786	13,829	20,016	16,735,345	2,415
Current liabilities	35,136	15,161	7,870	12,148	1	20,834	4,886,217	2,045
Non-current liabilities	2,266	1,984	4,171	25,848	0	1,502	1,249,444	154
Sales	117,488	60,103	27,839	78,103	-	63,398	18,357,396	10,386
Operating profit	22,069	9,888	934	5,897	5,988	14,573	1,817,780	1,366
Net Income	9,686	7,394	758	1,446	5,991	11,587	1,973,096	1,026
Comprehensive income	9,686	7,394	758	1,446	5,991	11,587	1,973,096	1,026
Cash flow from operating activities	11,609	6,103	1,033	13,796	−12	9,927	8,812,889	959
Cash flow from investing activities	−4,674	−2,821	−2,407	−8,542	6,863	−2,819	−3,598,520	−113
Cash flow from financing activities	10,889	−2,014	−834	−205	−6,875	−4,208	−5,082,458	−801
Net cash flow	17,824	1,268	−2,209	5,049	−23	2,901	131,912	45

Values in thousand euros.

22. INTEREST-BEARING DEBT

At year-end, current Interest-bearing debt was as follows:

	2023	2022
Overdrafts and bank loans	101,062	62,177
Bond loans	10,000	0
Leasing	1,828	1,809
Factoring	0	0
Reimbursable grants	0	0
Commercial paper	99,550	45,000
Interest-bearing debt - current	212,440	108,986

Values in thousand euros.

Debt was denominated in euros, except 3% (Dec. 2022: 7%).

Non-current interest-bearing debt was as follows:

	2023	2022
Bank loans	9,558	16,217
Reimbursable grants	0	0
Leasing	3,035	2,452
Commercial paper	59,200	46,200
Bond loans	30,000	40,000
Interest-bearing debt - non-current	101,793	104,869

Values in thousand euros.

At the end of the period, 96% of this debt was denominated in euros (Dec. 2022: 95%).

As of December 31, 2023, maturity of non-current interest-bearing debt was as follows:

Total	101,793
After 01/01/2028	29,877
Between 01/01/2027 and 31/12/2027	21,804
Between 01/01/2026 and 31/12/2026	7,257
Between 01/01/2025 and 31/12/2025	42,856

Values in thousand euros.

From non-current and current interest-bearing debt, 230.9 M€ carries floating interest rates. Remaining 83.3 M€ carries fixed interest rate. Average cost, during 2023, for all the credit utilised was 3.13% (2022: 1.18%).

On March 5, 2015, Corticeira Amorim entered into a loan agreement with the EIB in the amount of 35 M €, ten years, with a four-year grace period. This loan allowed Corticeira Amorim to expand substantially its maturity curve at a competitive price.

On 3 December 2020, Corticeira Amorim launched its first Green Bond issue, in the amount of 40 M€, by private subscription, without guarantees and for a period of 5 years, earning interest at a fixed rate every six months and with staggered repayment (25% at the end of the 4th year and 75% at maturity). This issue was an important milestone in its

sustainability strategy, reaffirming its ongoing commitment to the application of ESG (Environmental, Social and Governance).

On August 3, 2021, Corticeira Amorim reformulated a program for the issuance of commercial paper of 20 M€, transforming it into Sustainability Linked through the introduction of two KPIs: (i) consumption of energy from renewable sources and (ii) nonrenewable waste. valued cork; that will influence the interest rate on issues if the respective target levels are not reached. This program will expire on August 3, 2024.

Corticeira Amorim's 3rd ESG operation - a program for the issuance of green commercial paper of 11.6 M€ was carried out on 17 December 2021 and will expire on 22 December 2026, intended to finance the investment in photovoltaic panels by some companies from the different Business Units of Corticeira Amorim.

During 2022, Corticeira Amorim completed 2 more ESG operations: (i) a 35 M€ green commercial paper issue program maturing on 26 November 2029 and (ii) a green commercial paper issue program of 20 M€ maturing on 20 June 2027; both under the Corticeira Amorim Green Finance Framework – November 2022. Issuances carried out within the scope of said programs are intended to refinance the acquisition of the company Herdade de Rio Frio, S.A., the acquisition of a land of 1,855 hectares and the financing of investment in new plantations of cork oaks, all within the scope of the Intervention Project Corticeira Amorim Forestry.

As of December 2023, Corticeira Amorim had credit lines with contractual clauses that include covenants generally used in these types of contracts, namely: cross-default, pari-passu and in some cases negative pledge.

As of December 31, 2023, one foreign subsidiary was not using a credit facility covered by a loan mortgage guarantee on assets. These assets are booked on Statement of financial position of those subsidiaries.

Corticeira Amorim and two foreign subsidiaries used financing as at 31 December 2023 (a total of around 47 M€) to which financial covenants were associated. These consisted, essentially, in the fulfillment of ratios that allow monitoring the financial situation of companies, namely:

• Asset coverage ratio;
• Fixed charge coverage ratio;
• Net income; and
• Net debt/ EBITDA (Interest-bearing loans and equivalent)/ total cash-flow.

The above ratios are not restrictive and the requirements contained in the contracts that formalised the referred financing were largely and fully complied with. In the event of non-compliance, there would be a possibility that this would lead to the early repayment of the debts.

In addition, it is important to inform that the capacity to ensure debt service was further enhanced by the existence, as of December 31, 2023, of 229.9 M€ of credit lines approved, but not used.

23. TRADE PAYABLES

	2023	2022
Trade payables - current account	77,993	81,362
Trade payables - confirming	52,857	67,407
Trade payables - invoices pending	28,151	21,780
Trade payables	159,000	170,549

Values in thousand euros.

From the total values, 53% comes from Amorim Cork (2022: 62%) and 27% from Amorim Florestal (2022: 20%).

24. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

• Other financial liabilities

	2023	2022
Repayable grants	7,844	11,412
Other	456	487
Other financial liabilities - non current	8,300	11,899
Repayable grants	4,333	2,915
Accrued costs - supplies and services	3,454	4,545
Accrued costs - others	9,641	8,633
VAT	6,597	6,812
State and social security - withholding and others	8,983	7,961
Other	18,489	16,005
Other financial liabilities - current	51,497	46,871

Values in thousand euros.

In Other financial liabilities is included a value of 68 K€ (2022: 2 K€), which refers to exchange rate hedge derivatives.

In Other financial liabilities – non-current (8,300 K€), maturity is as follows: from 1 to 2 years (3,362 K€), from 2 to 4 years (4,131 K€) and more than 4 years (808 K€).

• Other liabilities

	2023	2022
Non -repayable grants	5,873	6,998
Accrued income	857	1,130
Accrued costs - staff costs	17,590	15,338
Other liabilities - current	24,320	23,466

Values in thousand euros.

The balances related to grants had the following variation:

Non-repayable grants	2023	2022
Opening Balance	6,998	4,326
Transfer to gains	−1,758	−2,620
Received during the year	639	2,656
Reclassifications/Transfers	−7	2,637
Closing Balance	5,873	6,998
	Values in thousand euros.
Repayable grants	2023	2022
Opening Balance	14,327	17,397

Opening Balance	14,327	17,397
Paid during the year	−3,220	−2,681
Received during the year	1,304	1,571
Reclassifications/Transfers	−234	−1,960
Closing Balance	12,177	14,327

Values in thousand euros.

Transfers is due largely to repayable benefits that were in the meantime, in some subsidiaries, converted into non- repayable and to the recognition of interest through measurement at amortised cost.

Most of the grants received by Corticeira Amorim is intended for investments aimed at increasing the production capacity and modernisation of industrial facilities, improving the quality of manufactured products, or improving energy and utilising its main raw material (cork).

Most of the projects that gave rise to grants classified as repayable; these are normally subject to evaluation, already at cruising stage, and if agreed targets are met, part or even all of the subsidy is converted into non-refundable.

There are no unpaid amounts associated with grants classified as non- repayable, nor are there conditions that are not yet to be met for recognition.

25. PROVISIONS

	2023	2022
Tax contingencies	64	125
Guarantees to customers	476	983
Others	7,402	3,365
Provisions	7,942	4,473

Values in thousand euros.

		Tax Contingencies		Customer
		Stamp tax	Others	Guarantees	Others
Opening balance 2023		62	63	983	3,366	4,473
Recognition	Other costs - Note 30				250	250
	Sales			0		0
	Income Tax		29			29
	Others				4,364	4,364
Reversal	Other gains - Note 30				−70	−70
	Others		−90	−506	−359	−955
	Income tax					0
Translation differences			0		32	32
Perimeter variation					0	0
Direct allocation					−181	−181
Ending balance 2023		62	2	477	7,402	7,942

Values in thousand euros.

			Tax Contingencies	Customer
		Stamp tax	Others	Guarantees	Others
Opening balance 2022		62	60	677	2,900	3,698
Recognition	Other costs - Note 30				598	598
	Sales			306		306
	Income tax		13			13
	Others				445	445
Reversal	Other gains - Note 30				−568	−568
	Others				−466	−466
Translation differences			−10		−17	−27
Perimeter variation					503	503
Direct allocation					−30	−30
Ending balance 2022		62	63	983	3,366	4,473

Values in thousand euros.

In the year ended December 31, 2023, the item customer guarantees (which are essentially from Amorim Cork Flooring) decreased by 506 K€.

Other contigencies

Other contingencies essentially include restructuring provisions (3.9 M€), provisions for termination of employment (1.9 M€) and ongoing processes (0.8 M€).

Claims by the tax authorities are related with stamp tax and marginally VAT.

26. POST-EMPLOYMENT BENEFITS

The main assumptions made for calculating liability are the following: discount rate 1.5%, salary increase 1.0%; actuarial table: BVG 2020 Generation Tables and mortality projection model: CMI (2022) 1.50%. The total number of employees benefiting from the plan is 32. The estimated liability for the end of the year is 807 K€.

Remaining amounts related mainly to the liabilities of the Bourrassé (293 K€) and Korken Schiesser (182 K€).

		Post-employment benefits
Opening balance 2022		2,184
Recognition	Others	−115
Reversal	Non-current costs
	Other gains - Note 30
Translation differences
Perimeter variation		533
Direct allocation
Ending balance 2022		2,603

Values in thousand euros.

		Post-employment benefits
Opening balance 2023		2,603
Recognition	Others	−181
Reversal	Non-current costs
	Other gains - Note 30
Perimeter variation		807
Direct allocation
Ending balance 2023		3,228

Values in thousand euros.

At the Elfverson subsidiary, the company provides a defined benefit pension plan for administrative employees born in 1978 or earlier. The plan is managed by the PRI Pensionsgaranti. In order to estimate its liabilities for the payment of these benefits, the procedure for calculating the actuarial liabilities was determined in accordance with the "Projected Unit Credit Method", in accordance with IFRS.

The main assumptions assumed were as follows: discount rate 3.7%, salary increase 2.5%; median life expectancy: DUS 21 (as determined by the Actuarial Research Board). The total number of employees benefiting from the plan is 27. The estimated responsibility for the end of the year is 845 K€ (2022: 997 K€).

The subsidiaries Amorim Cork Italia and Icas Spa have responsibilities regarding TFR (trattamento di fine rapporto). This is due by the company to the employee when the contractual relationship ends, whether the company or the employee to terminate the connection or at the time of retirement. This amount equals about 1 month / year of work. Both have accrued this amount, following the update rules defined by the government (a law is issued annually with the revaluation percentage of amounts from previous years). The value of the liabilities is approximately 633 K€ at Amorim Cork Italia and 449 K€ at Icas Spa.

For VMD Group companies, in Switzerland pension financing is an essential part of the social security system. Swiss companies are obliged to provide a minimum pension plan for staff. Swiss law outlines a minimum prototype plan. In Switzerland, pension plans are financed by contributions from both employees and employers. Contributions are defined by the plan regulations and cannot be reduced without changing the plan regulations.

27. THIRD PARTY SUPPLIES AND SERVICES 28. STAFF COSTS

	2023	2022
Communications	1,152	1,567
Data systems	8,158	10,308
Insurance	5,350	4,785
Subcontractors	5,130	5,971
Energy	15,011	39,944
Security	1,495	1,461
Professional Fees	966	1,036
Tools	2,981	3,329
Oil and gas	3,470	3,841
Royalties	797	743
Rentals	6,442	6,270
Transports	30,487	39,390
Representation expenses	1,299	1,113
Travel	5,917	5,487
Commissions	12,342	13,116
Specialised Services	13,052	11,830
Advertising	6,849	8,427
Maintenance	16,539	15,984
Others	13,730	11,873
Third party supplies and services	151,167	186,475

	2023	2022
Board remuneration	1,213	1,281
Employees remuneration	147,204	141,871
Social Security and other	29,155	28,172
Severance costs	1,441	1,266
Post-employment benefits	1,122	753
Other	9,718	9,810
Capitalised Costs	−121	−204
Staff costs	189,732	182,950
Average number of employees	5,020	5,073
Final number of employees	4,958	4,999

Values in thousand euros.

Board's remuneration includes Corticeira Amorim, S.G.P.S., SA and any of its subsidiaries. Includes also General Meeting board members expenses.

Values in thousand euros.

Corticeira Amorim has leadership programmes aimed at enhancing quality and its direct impact on the Organisation's results and performance. These programmes focus on developing leadership principles through continuous improvement, while respecting each individual's uniqueness and diverse management styles, thus preparing leaders for the future.

© Lara Jacinto, 2020

Corticeira Amorim's Energy, Environment and Biodiversity Policy establishes, among others, the principle of promoting good environmental practices among its partners, encouraging responsible consumption and the circular economy by reducing waste, decreasing the amount of raw materials used, limiting packaging and favouring recycled and/or recyclable materials.

29. IMPAIRMENTS OF ASSETS

	2023	2022
Receivables	1,046	−432
Tangible, intangible assets and others	140	589
Impairments of assets and non-current costs	1,186	157

Values in thousand euros.

Receivables impairments include customers and other debtors.

30. OTHER INCOME AND GAINS / OTHER COSTS AND LOSSES

31. NON-RECURRING RESULTS

Non-recurring results include the sale of an investment property (Corroios), the discontinuation of the product line at Amorim Cork Flooring and restructuring expenses, mainly arising from the industrial reorganization of a subsidiary at Amorim Cork.

	2023	2022
Restructuring costs	−3,226	−1,240
Disposal of investment propoerties	5,050	3,206
Impairments exposure to Russia	-	−1,042
Product line discontinuation	−1,042	-
Transaction expenses of business combinations	-	−250
Bonus	-	−1,479
Non-current results	782	−804

Values in thousand euros.

	2023	2022
Exchange rate hedging: exchange differences (note 3(a))	669	0
Exchange rate hedging: var. derivative fair value (note 3(a))	0	871
Gain in fixed assets and p. investment disposals	341	500
Provisions reversals	70	568
Operating subsidies	1,564	1,515
Investment subsidies	1,758	2,620
Suplementary income	2,678	2,575
Building revenues	298	519
Own works	2,057	1,940
Other	10,656	9,829
Other income and gains	20,088	20,936

Values in thousand euros.

	2023	2022
Exchange rate hedging: exchange differences (note 3(a))	0	2,724
Exchange rate hedging: var. derivative fair value (note 3(a))	81	0
Taxes (other than income)	2,483	2,408
Provisions	250	598
Loss in fixed assets and p. investment disposals	143	102
Bank charges	813	1,131
Bad debts	521	1,033
Loss in inventory differences	127	365
Donations and fees	1,305	939
Other	2,928	1,866
Other costs and losses	8,651	11,166

Values in thousand euros.

32. FINANCIAL COSTS AND FINANCIAL INCOME

	2023	2022
Interest costs - bank loans	3,811	1,167
Interest costs - other entities	4,451	1,202
Stamp tax	308	161
Interest costs - other	749	845
	9,319	3,375
Interest gains - bank deposits	442	58
Interest gains - other loans	251	361
Interest gains - delayed payments	747	43
Interest gains - other	53	127
	1,494	590
Net financial costs	7,825	2,785

Thousand euros.

Interest costs – other entities includes 67 K€ (2022: 96 K€) is included to apply the amortised cost.

33. RELATED-PARTY TRANSACTIONS

Corticeira Amorim consolidates directly in Amorim – Investimentos e Participações, S.G.P.S., S.A. with its registered office at Mozelos (Santa Maria da Feira, Portugal), the Amorim Group holding company.

As of December 31, 2023, the financial stake of Amorim – Investimentos e Participações, S.G.P.S., S.A. in Corticeira Amorim was 51%, corresponding to 51% of voting rights.

Corticeira Amorim 's transactions with related companies are, in general, due to the rendering of services by Amorim – Investimentos e Participações, S.G.P.S. subsidiaries. Total revenue of these subsidiaries to the remaining Corticeira Amorim companies was of 1,015 K€ (2022: 11,664 K€), variation justified by the acquisition at the end of 2022 of the company Amorim Cork IT from a related party.

Sales from Quinta Nova, S.A., Amorim - Investimentos e Participações, S.G.P.S., S.A. subsidiary to Corticeira Amorim subsidiaries was 32 K€ (2022: 21 K€). Purchases totalled 468 K€ (2022: 241 K€).

Cork acquired during 2023, from companies held by the main indirect shareholders of Corticeira Amorim, amounted to 2,155 K€ (2022: 1,321 K€). This corresponds to less than 5% of total acquisitions of that cork raw-material.

Balances at year-end 2023 and 2022 are those resulting from the usual payment terms (from 30 to 60 days) and so are considered to be immaterial.

Services are usually traded with related parties on a "cost plus" basis in the range of 2% to 5%.

The total short-term remuneration of key personnel (including the executive committee of the SGPS and general managers of the Business Units) at Corticeira Amorim reached the value of 3,313 K€ (2022: 3,504 K€). The value of post-employment benefits, other long-term benefits, termination benefits and share-based payments is nil.

34. AUDITOR'S FEES

EY auditor's remuneration for the group of subsidiaries and for Corticeira Amorim was 502 K€ (2022: 479 K€) and detailed as follows:

Nature of service			Audit	Review of interim financial information and other assurance engagements	Other services	TOTAL
EY SROC	Corticeira Amorim	Value	49,440	26,950	0	76,390
		%	65%	35%	0%	100%
	Entities that integrate the Group	Value	220,020	22,300	0	242,320
		%	91%	9%	0%	100%
	Total	Value	269,460	49,250	0	318,710
		%	85%	15%	0%	100%
EY global network companies	Corticeira Amorim	Value	0	0	0	0
		%	0%	0%	0%	0%
	Entities that integrate the Group	Value	175,820	7,500	0	183,320
		%	96%	4%	0%	100%
	Total	Value	175,820	7,500	0	183,320
		%	96%	4%	0%	100%
Total	Corticeira Amorim	Value	49,440	26,950	0	76,390
		%	65%	35%	0%	100%
	Entities that integrate the Group	Value	395,840	29,800	0	425,640
		%	93%	7%	0%	100%
	Total	Value	445,280	56,750	0	502,030
		%	89%	11%	0%	100%

Values in euros.

The item Review of interim financial information and other assurance services includes the limited review of the consolidated financial statements for the six-month period ended June 30, 2023, independent review of the sustainability report, Independent review of the obligations report greens and certification of combined financial statements and execution of procedures for validating applications within the scope of the RRP ("Recovery and Resilience Plan") and PT 2020 programmes.

In 2023, additional fees worth 402 K€ were paid for audit and account review services provided by other Audit firms, outside the EY universe.

35. OTHER INFORMATION

a. Net profit per share calculation used the average number of issued shares deducted by the average no. of treasury shares. The non-existence of potential voting rights justifies the same net profit per share for basic and diluted shares

	2023	2022
Total issued shares	133,000,000	133,000,000
Average no. of treasury shares	0	0
Average no. of outstanding shares	133,000,000	133,000,000
Net Profit (thousand euros)	88,897	98,395
Net Profit per share (euros)	0.668	0.740

b. Guarantees

In the course of its operational activity, Corticeira Amorim issued guarantees to third parties amounting to 267 K€ on 12/31/2023 (Dec. 2022: 267 K€).

Beneficiary	Amount	Purpose
Government agencies	77	Investment support
Other	190	Other
TOTAL	267

Values in thousand euros.

Commitments relating to the purchase of cork amount to 55,916 K€ (2024: 46,157 K€; 2025: 4,017 K€, 2026: 1,595 K€ and 2027 and onwards 4,147 K€).

Additionally, guarantees were provided by the subsidiaries, not related to financing, and which amounted to 939 K€ on 12/31/2023.

c. Financial assets and liabilities

Financial assets are mainly registered in the loans and other receivables account heading. As for financial liabilities they are included in the amortised cost liability.

Detail of financial assets and liabilities:

	Financial assets at amortised cost	Financial assets at fair value	Derivatives as hedging	Total
Trade receivables (note 17)	207,792			207,792
Other financial assets (note 14)	32,437	10,341	1,141	43,918
Cash and cash equivalents (note 19)	84,867			84,867
Total as of December 31, 2022	325,096	10,341	1,141	336,578
Trade receivables (note 17)	203,080			203,080
Other financial assets (note 14)	35,345	8,289	189	43,823
Cash and cash equivalents (note 19)	73,394			73,394
Total as of December 31, 2023	311,818	8,289	189	320,296

Values in thousand euros.

	Loans and payables	Accounts payable	Derivatives as hedging	Total
Interest-bearing debt (note 22)	213,855			213,855
Trade payables (note 23)		170,549		170,549
Other financial liabilities (note 24)	14,327	44,441	2	58,770
Total as of December 31, 2022	228,182	214,989	2	443,174
Interest-bearing debt (note 22)	314,233			314,233
Trade payables (note 23)		159,000		159,000
Other financial liabilities (note 24)	12,177	47,552	68	59,797
Total as of December 31, 2023	326,410	206,553	68	533,030

Values in thousand euros.

Customers balances are denominated in USD (7.7%), CLP (4.5%), GBP (1.8%), DKK (1.2%), AUD (0.9%) and CHF (0.9%) and the remainder is almost totally euro based. Exchange rate differences are due, mainly, to non-euro based customer's balances, as well as foreign currency loans used as a hedge accounting instrument.

Corticeira Amorim understands that the fair value of the classes of financial instruments presented does not differ significantly from its book value, taking into account the contractual conditions of each of these financial instruments.

Current assets and liabilities, given their short-term nature, have an accounting value similar to fair value.

The non-current net debt at a fixed rate includes a part that was contracted during 2015. As there were no significant variations in the reference interest rates, the rate negotiated at the time does not differ substantially from current market conditions, so the fair value does not differ significantly from the book value.

The remaining non-current debt at a fixed rate corresponds to the Green Bonds.

In the case of Other Financial Liabilities (essentially grants with no interest bearing measured at fair value at initial recognition), given the magnitude of the initial adjustment difference to be recognised in the income statement, the maturities and current interest rate levels, the difference between the book value and fair value is not significant.

d. Reconciliation of Alternative Performance Measures

According to the guidelines of the ESMA (European Sales and Marketing Association) of October 2015 on Alternative Performance Measures (APM), Corticeira Amorim presents below a table to reconcile APMs that are not directly readable in the primary financial statements.

Management report	Consolidated financial statements
Gross margin	Sales - Cost of goods sold and materials consumed + Change in manufactured inventories
Gross margin %	Gross margin / (Sales + Change in manufactured inventories)
Operational costs	Third party supplies and services + Staff costs + Impairments of assets - Other income and gains + Other costs and losses + Depreciation
Working capital	Inventories + trade receivables - trade payables + other operating assets - other operating liabilities
Invested capital	Goodwill + tangible fixed assets + intangible assets + right of use + working capital + investment properties + Investments in associates and joint ventures + other operating assets / (liabilities)
Net interest-bearing debt / consolidated debt	Current and non-current Interest-bearing loans - cash and cash equivalents
Operating profit	Gross margin + operational costs
Operating profit before depreciation	Gross margin + Third party supplies and services + Staff costs + Impairments of assets - Other income and gains + Other costs and losses
EBITDA	Operating profit before depreciation and non-recurrent
EBITDA margin	EBITDA / Sales
EBIT	Result before taxes and expenses/financial income
Financial autonomy	Equity / Total assets

© Sam Lahoz, 2023

Combining performance and sustainability, cork was featured in the exhibition Generation Proxima: Emerging Environmental Practices in Portuguese Architecture in New York, being used in plinths, models and maquettes, and the entire exhibition space includes underlays and agglomerate from Amorim Cork Composites and expanded cork agglomerate from Amorim Cork Insulation.

36. SUBSEQUENT EVENTS

At the date of issuance of this report, there were no material events that could materially affect the financial position and future results of Corticeira Amorim and all subsidiaries included in the consolidation.

Mozelos, March 25, 2024

The Board of CORTICEIRA AMORIM, S.G.P.S., S.A.

António Rios de Amorim (Chairman) Nuno Filipe Vilela Barroca de Oliveira (Vice-Chairman) Fernando José de Araújo dos Santos Almeida (Member) Cristina Rios de Amorim Baptista (Member) Luisa Alexandra Ramos Amorim (Member) Juan Ginesta Viñas (Member) José Pereira Alves (Member) Marta Parreira Coelho Pinto Ribeiro (Member) Maria Cristina Galhardo Vilão (Member) António Manuel Mónica Lopes de Seabra (Member)

Amorim Cork Flooring's strategic objectives for 2025 have been brought forward to 2024 and it is now 100% green, with a 100% PVC‑free portfolio. As a result, Wicanders Wise has been launched, with new solutions based on digital printing technology.

Report and Opinions of the Supervisory and Auditing Bodies

CORTICEIRA AMORIM, S.G.P.S., SA

Report and Opinion of the Audit Committee - 2023 Financial Year

Dear Shareholders,

Pursuant to the Law and the mandate given to us, we hereby submit our Report on our supervisory activity and issue our Opinion on the Management Report and Individual and Consolidated Financial Statements presented by the Board of Directors of Corticeira Amorim, S.G.P.S., S.A. (Corticeira Amorim or Company) for the financial year ended 31 December 2023.

I - Activity Carried Out

The Audit Committee of Corticeira Amorim was elected at the General Meeting of Shareholders of 23 April 2021. At the same General Meeting, the Anglo-Saxon management and supervisory model was adopted. This includes the Board of Directors, as governing body, and the Audit Committee and Statutory Auditor as supervisory and control bodies. The Audit Committee was preceded, in its role as a supervisory body, by a Supervisory Board in office until that date. On 3 May 2021, the Board of Directors appointed an Executive Committee, delegating to it the implementation of the Board of Directors' decisions and the day-to-day management of Corticeira Amorim and also, through the issuing of binding instructions, the day-to-day management of its direct and indirect subsidiaries.

The Audit Committee regularly monitored the activities of the Company and its main subsidiaries and oversaw compliance with the law and the Company's Articles of Association. It supervised the Company's administration, the effectiveness of internal control systems, including risk management, compliance and internal audit functions and the preparation and disclosure of individual and consolidated financial information. In addition, the Board monitored the accuracy of the accounting records, of the individual and consolidated financial statements and of the accounting policies and valuation criteria adopted by the company. It also appraised the reasonableness of the Management's estimates and judgements in matters that presuppose a higher level of subjectivity, in order to verify if they adequately reflect the company's assets and its individual and consolidated results and cash flows.

In this financial year, the meetings and other work that are part of the functions of the Audit Committee were held either in person or by telematic means. The necessary meetings and discussions with other partners of the Audit Committee were held with the required regularity and to adequate depth, regardless of the form in which the meetings were held. The members of the Committee were also present, likewise in person or by telematic means, at the meetings of the Board of Directors held during the 2023 financial year. The Audit Committee members, except for its chairperson, also lead specialised committees on matters of importance for the Company's life. The chairman of the Audit Committee was appointed by the non-executive directors as Independent Lead Director for the current term of office (2021-2023).

In carrying out its duties, the Audit Committee met regularly with representatives of the Statutory Auditor, in order to monitor the auditing work carried out, from the planning stage to the respect conclusions of the final audit, and also appraised its independence. In this regard, the Audit Committee analysed the proposals presented to it for the provision of services, other than auditing services, by the Statutory Auditor Firm, and approved those that respected permitted services that would not affect the independence of the Statutory Auditor Firm and fulfilled other legal requirements. The Audit Committee monitored the functioning of the system for reporting irregularities and transactions with related parties, as is its remit. It concluded that these transactions were carried out in the interests of the Company, within the scope of the normal business activity of the Company or of its subsidiaries, and under normal market conditions.

The Committee met with the departmental representatives with responsibility for preparing the individual and consolidated accounts, as well as with the Internal Auditors, the heads of the Legal and Tax Departments and the head of the Compliance area, and it received full collaboration from them. The Audit Committee also met with the members of the Executive Committee, who answered all the questions raised and explained the plans and objectives of the Company.

The Audit Committee analysed the Statutory and Auditor's Report on the Individual and Consolidated Financial Statements for the financial year of 2023, which comprise the Consolidated and Individual Statements of the Financial Position on 31 December 2023, the Individual and Consolidated Income Statements by Nature of Expense, the Individual and Consolidated Statements of Comprehensive Income, the Individual and Consolidated Statements of Changes in Equity and the Individual and Consolidated Statements of Cash Flows and the notes to the Individual and Consolidated Financial Statements. No reservations were raised in relation to any of these documents. The Audit Committee also analysed (1) the Confirmation of Independence and (2) the Additional Report sent to it by the Statutory Auditor Firm, both sent on the date of completion of the auditing work.

The Audit Committee also analysed the Corporate Governance Report, being only responsible for certifying if it includes all the elements stipulated in Article 29-H of the Portuguese Securities Code, which the Audit Committee verified.

II - Opinion

It is hereby stated, within the scope of the duties of the Audit Committee, that, to the best of our knowledge and belief, the aforementioned financial statements have been prepared in accordance with applicable accounting standards and they give a true and fair view of the assets and liabilities, financial position and results of CORTICEIRA AMORIM, S.G.P.S., S.A. and the group led by it. Also, that the annual reports faithfully present the business evolution, performance and financial position of the group, and contains an adequate description of the main risks and uncertainties faced by the group. It should also be emphasised that the aforementioned documents include non-financial information relevant to understanding the group's activity, namely with regard to environmental, social and governance matters. The Board also certifies that the Corporate Governance Report includes all elements stipulated in Article 29-H of the Portuguese Securities Code.

Under these terms, and taking into account the steps taken, the opinions and the information received from the Board of Directors, the Company services, the Statutory Auditor and the External Auditor, the Audit Committee is of the opinion that:

• 1. The Individual and Consolidated Management Reports for the financial year of 2023 should be approved;
• 1. The Individual and Consolidated Financial Statements for the financial year of 2023 should be approved;
• 1. The proposal for the appropriation of profits presented by the Board of Directors, which is duly substantiated, should be approved.

Mozelos, 27 March 2024

The Audit Committee

José Pereira Alves – Chairman

Marta Parreira Coelho Pinto Ribeiro – Member

Maria Cristina Galhardo Vilão – Member

António Manuel Mónica Lopes de Seabra – Member

© Lara Jacinto, 2021.

The macerated cork stoppers are submitted to sensory analysis by tasters from Amorim Cork's internal panel. The main objective is for each taster to identify any organoleptic deviations present in the cork stoppers. The maceration, extraction of certain substances that are considered to be the active principles, is carried out in deionised water.

Description of the most significant assessed	Summary of our response to the most significant assessed risks of
risks of material misstatement	material misstatement
As at 31 December 2023, Inventories amount	Our audit approach included the performance of the following
to 516.497 thousand euros, net of	procedures:
impairment losses of 14.698 thousand euros,	We obtained an understanding of the inventories process and
and represent around 36% of total assets.	identified the controls implemented related to the existence
They are comprised of cork, cork stoppers	and valuation of inventories in the relevant subsidiaries:
and other cork derived processed products,	We attended the physical counts of inventories in all relevant
which are spread across several locations.	subsidiaries and geographies, carried at or near year-end,

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© Ricardo Gonçalves, 2019.

The range of notable studios, architects and designers that make up City Cortex had the opportunity to tour the premises of Corticeira Amorim, visit the cork oak forest in the Alentejo plains and "feel" the touch of cork.

Consolidated Annual Report

2023

Corticeira Amorim, S.G.P.S., S.A. Listed Company

Edifício Amorim I Rua Comendador Américo Ferreira Amorim, 380, Apartado 20, 4536-902 Mozelos – Portugal T: +351 227 475 400 F: +351 227 475 410 corticeira.amorim@amorim.com www.amorim.com/en

Copyright © Corticeira Amorim © reserved for authors and/or institutions referenced

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