Slide 1: 2Q21 Earnings Conference Call
WY SUZONO Eatnings Conference Call
Slide 2: Disclaimer
Disclaimer This presentation contains what are considered “forward-looking statements,” as defined in Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act, as amended. Some of these forward-looking statements are identified with words such as “believe,” “may,” “
Slide 3: Record EBITDA, further leverage reduction and moving forward on strategic agenda
HIGHLIGHTS Record EBITDA, further leverage reduction and moving forward on strategic agenda Pulp: 2.5 million tons (vs. 2.8 million tons 2Q20) Sales Paper1: 266k tons (vs. 202k tons 2Q20) Volume Pulp Inventory: below optimal operating level ESG: o New commitment to renewing life through biodiversity
Slide 4: Solid operational and commercial performance led to record EBITDA per ton
PAPER AND PACKAGING BUSINESS Solid operational and commercial performance, with improved price and sales mix, led to record EBITDA per ton Paper Sales¹ (‘000 ton) Local Export 600 500 950 1,144 400 750 264 281 264 266 363 201 300 550 200 87 112 88 84 91 350 781 100 177 169 110 176 182 150 0 -5 0 2Q1
Slide 5: Robust sales volume and higher prices provide record quarterly EBITDA
PULP BUSINESS Robust sales volume and higher prices provide record quarterly EBITDA Sales Volume¹ (´000 ton) 500 0 10,380 450 0 400 0 11,00 2,778 10,00 350 0 2,570 2,653 2,537 9,000 2,214 300 0 8,000 250 0 7,000 200 0 6,000 150 0 5,000 100 0 4,000 3,000 500 2,000 0 1,000 2Q18 2Q19 2Q20 1Q21 2Q21 LTM
Slide 6: Higher commodity prices pressuring cash cost in 2Q21
PULP BUSINESS Higher commodity prices pressuring cash cost in 2Q21 Pulp Cash Cost 2Q21 vs. 1Q21 (ex-downtime – R$/ton) +9% 25 8 8 4 680 623 12 148 140 Commodity prices effect: 253 282 R$ 23/ton 270 282 (40) (32) 1Q21 Δ Wood Δ Input Δ Fixed Cost Δ Energy FX 2Q21 Pulp Cash Cost 2Q21 vs. 2Q20 (ex-downt
Slide 7: Liability management and continued leverage reduction demonstrate financial discipline
FINANCIAL MANAGEMENT Liability management and continued leverage reduction demonstrate financial discipline Net Debt (billion) and Leverage (in times) Amortization Schedule² (US$ billion) In R $ 5.8x 5.6x 5.4x 5.6x Average Cost (in US$): 4.4% p.a. Average Term: 87 months In US$ 5.2x 5.0x 4.8x 4.6x 3
Slide 8: Cash Flow hedging portfolio responding to the evolution in FX market rates
FINANCIAL MANAGEMENT Cash Flow hedging portfolio responding to the evolution in FX market rates Financial Result – 2Q21 (R$ billion) Portfolio Renewal – Cash Flow Hedge (ZCC) 6.12 6.10 6.06 6.01 6.02 5.67 -0.9 Interest on debt Call (average) Effects related to debt management 5.37 5.33 5.31 Put (ave
Slide 9: Financial discipline: Capex in line with guidance and no major disbursement on Cerrado Project
CAPEX GUIDANCE 2021 Financial discipline: Capex in line with guidance and no major disbursement on Cerrado Project Capex (R$ billion) 2Q21 6M21 2021e Sustaining 1.0 2.0 4.0 Forest and Land 0.1 0.2 0.7 Expansion, Modernization and Others¹ 0.0 0.2 0.5 CERRADO PROJECT 0.2 0.2 1.0 TOTAL 1.3 2.6 6.2 ¹ In
Slide 10: Takeaways 2Q21
Takeaways TAKEAWAYS 2Q21 o Structural competitiveness and low inventory levels ensure resilience and strong cash generation in any market scenario o Management initiatives to minimize exogenous pressures on cash cost o Financial discipline in leverage management according to indebtedness policy o He
Slide 11: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br 11