Public Summary of the General Plantations Management Plan of MLR Forestal de Nicaragua SA Fiscal year 2020

The Forestry Project was born in 2008 and is assumed by the MLR Forestal de Nicaragua SA Company as of 2013, focusing its investment on the establishment and management of forest plantations, with Teak as the main species (Tectona grandis ) and Cacao agroforestry systems (Theobroma cacao ). The forest plantations are located in the Municipality of Siuna, in the Autonomous Region of the North Caribbean Coast (RACCN).

The project is financed with private funds as a commercial investment that must ensure a fair return to investors. However, from its initial approach it has been clearly defined that it is a constructive investment, which organizes its business actions in a way that contributes to solving local and global problems of socio-economic and environmental development.

As a guide for the fulfillment of social and environmental commitments, the FSC (Forest Stewardship Council) standards for forest plantations and UTZ for cocoa have been selected. Both the standards of the certifiers, as well as the criteria of the investor group, give special interest to the application of international principles and standards in the management of all operations in the different stages of the project, including the mitigation of environmental and social impacts of neighboring communities. .

The project contemplates reforesting a total of 4,000 hectares over a period of 20 years, mainly in the Municipality of Siuna, depending on the availability of area, labor and other necessary elements. This summary includes a general summary of the MLR operation in 2020, which will be available to any of the interested parties or stakeholders.

In view of the incessant social threat that threatens the world, as is the case of COVID-19, dissemination and consultation actions are being prioritized through different communication technologies, such as the website and social networks. The general management plan was approved in 2012, valid for five years, so this summary is part of the second period of the plan that covers 2018-2023, which has been prepared and approved by the General Management at the time .

The summary includes precise analysis of the most relevant results obtained in 2019, monitoring actions such as growth verification, budget execution and other elements that allow the management team to have adequate feedback on how the plantations are progressing in view of the results that are expected in each program cycle.