Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q4 2021 Earnings Presentation
13 slides from Suzano's earnings presentation, Feb 10, 2022
Slide 1: Earnings Conference Call 4Q21
Earnings Conference Call 4Q21
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: 2021: Our best set of results in our history
HIGHLIGHTS 2021: Our best set of results in our history and a great progress in our strategy Sales Operating Financial Strategic Volume Performance Management Avenues Be “Best-in-Class” in Pulp: Adjusted EBITDA: Liquidity4: the Total Pulp Cost vision 10.6 million tons R$23.5 bi US$5.1 bi (vs. 10.8 m
Slide 4: Improvement in all pillars and new commitments
ESG Improvement in all pillars and new commitments ENVIRONMENTAL SOCIAL GOVERNANCE Launching of an ambitious Diversity & Inclusion Improvements on Board of biodiversity target Directors policy: ⚫ 50% of racial and/or gender diversity in the final hiring stages ⚫ Formal responsibility for ESG and Cli
Slide 5: Record EBITDA, driven by operating performance and favorable market conditions
PAPER AND PACKAGING BUSINESS Record EBITDA, driven by operating performance and favorable market conditions, despite cost pressures Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) Paper Adjusted EBITDA2 Exports R$ MM R$/ton Local 1,172 1,789 1,634 1,608 4,866 1,055 4,674 363 4,568 324 338 366 1,
Slide 6: All-time high EBITDA in 2021, fueled by improved price scenario
PULP BUSINESS All-time high EBITDA in 2021, fueled by improved price scenario Sales Volume (‘000 tons) Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin (%) US$ BRL R$ MM R$/ton Margin % 3,519 2,140 2,114 2,025 3,422 3,307 10,823 10,586 2,476 21,439 2,388 1,326 1,250 2,663 2
Slide 7: Persisting inflationary pressure from commodities impacting cash cost
PULP BUSINESS Persisting inflationary pressure from commodities impacting cash cost throughout the year Pulp Cash Cost - 4Q21 vs. 3Q21 (ex-downtime – R$/ton) +5% 711 747 21 27 2 (22) 8 152 154 Commodity prices 300 effect: 335 R$ 31/ton 292 312 (32) (54) 3Q21 Wood Input Fixed Cost Energy FX
Slide 8: Sharp decline in net debt and higher liquidity in 2021
FINANCIAL MANAGEMENT Sharp decline in net debt and higher liquidity in 2021, with no refinancing risk for the new investment cycle Net Debt (US$ billion) 0.5 0.4 1.2 0.4 12.3 (4.4) 10.4 Net Debt Adjusted Total Working Net interest Others2 Net Debt Dec 2020 Ebitda Capex Capital accrual Dec 2021 Lev
Slide 9: Currency risk mitigation through a sound and consistent hedging policy
FINANCIAL MANAGEMENT Currency risk mitigation through a sound and consistent hedging policy over the years Current Portfolio Cash Flow Hedging Hard currency Cash Flow Hedging and Cerrado Project Hedging Program (ZCC) Cerrado Project – Hedging Program 23% ⚫ In accordance with Hedging Policy 971 Cerra
Slide 10: CAPEX 2021 in line with the guidance shows financial discipline
CAPEX 2021 CAPEX 2021 in line with the guidance shows financial discipline CAPEX 2022 (R$ billion) 2021 Maintenance Guidance 5.0 R$6.2 Bn Cerrado Project R$13.6 Bn 7.3 Actual R$6.3 Bn Land and Forests 0.6 Expansion, Modernization, Port Terminals and Other 0.7 10
Slide 11: Cerrado Project: On time and on budget
CERRADO PROJECT On time and on budget 3% PHYSICAL (inside-the-fence execution) 3% FINANCIAL (inside-the-fence cash disbursement) Progress up to December 2021 | Inside-the-fence includes industrial and infraestructure investments. 11
Slide 12: 2021 Takeaways
2021 Takeaways ⚫ Record operating results, despite persistent inflationary pressure and logistics restrictions ⚫ Strong balance sheet provides no refinancing risk for the new investment cycle ⚫ Significant advances in the ESG agenda, with new commitments and ambitions Save the date ⚫ Progress on str
Slide 13: Q&A 4Q21 Investor Relations
Q&A 4Q21 Investor Relations www.suzano.com.br/ri ri@suzano.com