COINDU | Sustainability Report - 2024

Materiality assessment EXTRAORDINARY REPORTING ABOUT ARCOS PLANT The COINDU plant in Arcos de Valdevez closed its operations at the end of December 2024. It’s closure resulted from a strategic evalu- ation of market conditions and business viability. The decision was based on the conclusion that maintaining operations at this unit had become economically unsustainable. In response, COINDU implemented a comprehensive transition plan to ensure full compliance with all applicable legal requirements and to mitigate the operational, environmental, and social impacts of this decision. As the unit operated throughout the full calendar year, its inclusion in this report was considered appropriate and consistent with our reporting practices. However, this plant will not be considered for the next reports. SOCIAL AND ECONOMIC IMPACTS AND MITIGATION MEASURES Fully aware of the social and economic implications associated with the closure of an industrial facility - particularly its impact on employees and the local community - COINDU implemented a series of meas- ures to support affected workers and mitigate negative outcomes. Job losses and the resulting unemployment represent the most immediate direct consequence, with implications for household income and local purchasing power. Indirectly, the closure may contribute to increased social inequality and a reduction in local tax revenues, as most em- ployees reside in nearby areas and contribute to municipal services. A key measure included the negotiation of a 17% increase over the legally mandated severance payments, providing additional financial 64