Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q1 2022 Earnings Presentation
14 slides from Suzano's earnings presentation, May 6, 2022
Slide 1: Earnings Conference Call 1Q22
Earnings Conference Call 1Q22
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: Consistent cash generation despite cost pressures and stronger BRL
HIGHLIGHTS Consistent cash generation despite cost pressures and stronger BRL Sales Operating Financial ESG Volume Performance Management Pulp Adjusted EBITDA: Liquidity: Climate Change Policy NEW 2.4 million tons R$5.1 bi US$5.3 bi (vs. 2.7 million tons in 1Q21 and (vs. R$4.9 billion in 1Q21 and (v
Slide 4: New record in EBITDA/ton due to growth in sales volume and price increases
PAPER AND PACKAGING BUSINESS New record in EBITDA/ton due to growth in sales volume and price increases Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) Paper Adjusted EBITDA2 Exports Local R$ MM R$/ton 1,188 1,873 1,634 1,715 5,349 338 368 1,412 264 280 96 4,866 4,835 2,038 93 552 525 88 4,192 3
Slide 5: Price evolution with volumes impacted by planned downtimes and low inventories
PULP BUSINESS Price evolution with volumes impacted by planned downtimes and low inventories Sales volume (‘000 ton) Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin(%) US$ BRL R$ MM R$/ton Margin % 2,114 2,088 10,314 3,519 3,417 1,915 3,345 1,683 2,653 2,722 2,382 2,913 21
Slide 6: Inputs continue to print the main pressure on cash cost, also affected by scheduled downtimes
PULP BUSINESS Inputs continue to print the main pressure on cash cost, also affected by scheduled downtimes Pulp Cash Cost – 1Q22 vs. 4Q21 (ex-downtime – R$/ton) 868 26 24 0 747 72 179 (1) 154 Commodity price 407 335 effect: R$54/ton 312 312 (54) (31) 4Q21 Δ Wood Δ Input Δ Fixed Cost Δ Energy FX 1Q2
Slide 7: Cerrado Project
CERRADO PROJECT Physical progress (%) 100 Inside-the-fence 82 43 10 Dec 2021 Dec 2022 Dec 2023 2H24 Financial Progress (%) Inside-the-fence 9% Progress reflects the position up to 03/31/2022. | Inside the fence includes investments in industry and infra structure. 7
Slide 8: Net debt stability despite dividend payout and higher CAPEX
FINANCIAL MANAGEMENT Net debt stability despite dividend payout and higher CAPEX Net Debt (US$ billion) 10.4 10.5 -1.0 0.5 -0.2 0.2 0.1 0.3 Net debt Adjusted Total Δ Working Dividends Accrued Others2 Net Debt Dec 2021 EBITDA Capex Capital Payment Net Interest Mar 2022 Leverage (multiples) Amortizati
Slide 9: Hedging policy shows consistency for FX risk management
FINANCIAL MANAGEMENT Hedging policy shows consistency for FX risk management MTM – Cash Flow (ZCC) (R$) Current portfolio Cash Flow Hedging and Cerrado Project Hedging Program (ZCC) 4Q21 1Q22 Cash Flow Hedging -0.2 bn +2.3 bn 1,947 1,709 Cerrado Project – Hedging Program +2.5 bn 516 Notional (USD MM
Slide 10: CAPEX - Update
FINANCIAL MANAGEMENT CAPEX - Update 1Q22 (R$ billion) 2022 (R$ billion) Cerrado Maintenance Maintenance Project R$2.6 Bn 1.2 Cerrado R$13.6 Bn 5.0 1.2 Project 7.3 Land and Forests Expansion, Land and Expansion, 0.6 Modernization, Forests Modernization, Port Terminals and others 0.1 Terminals and Oth
Slide 11: Parkia Acquisition of 12 companies
PURCHASE AGREEMENT Parkia Transaction Rationale: Acquisition of 12 companies that own: o Areas became strategic for Suzano S.A. (post- merger) 206k ha of land o More efficient cost of capital (BA/ES/MS/SP) Be “Best-in- Maintain Class” in the relevance in Total Pulp Pulp, through Cost vision good pro
Slide 12: Favorable cycle enables shareholders compensation while preserving financial discipline
DIVIDENDS AND BUYBACK PROGRAM Favorable cycle enables shareholders compensation while preserving financial discipline R$1.0 bn R$0.8 bn Share Buyback Program Record Date: Record Date: 01/18/2022 05/05/2022 Authorized Volume: Distribution¹: Distribution¹: Up to 20 million shares 01/27/2022 05/13/2022
Slide 13: Takeaways 1Q22
Takeaways 1Q22 ⚫ Solid cash generation despite stronger BRL and cost pressure from commodities ⚫ Cash flow hedging policy shows consistency in exchange risk management ⚫ Price environment not yet fully reflected in the results Save the date 2nd ESG Call ⚫ Cerrado Project: “on time and on budget” Jun
Slide 14: Q&A 1Q22 Investor Relations
Q&A 1Q22 Investor Relations www.suzano.com.br/ri ri@suzano.com