Slide 1: Earnings Conference Call 2Q22
Earnings Conference Call 2Q22
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: Tight markets and positive operating performance ensure net debt stability during investment cycle
HIGHLIGHTS Tight markets and positive operating performance ensure net debt stability during investment cycle Sales Operating Financial Cerrado Volume Performance Management Project Pulp: Adjusted EBITDA: Liquidity : % Physical progress: 2.7 million tons R$6.3 bn US$5.2 bn (inside-the-fence)4 (vs. 2
Slide 4: Commercial strategy and margin expansion prompt new EBITDA records
PAPER AND PACKAGING BUSINESS Commercial strategy and margin expansion prompt new EBITDA records Paper Sales¹ (‘000 tons) Exports Local 1,214 281 280 291 264 266 377 202 93 93 87 112 84 91 198 837 177 169 182 187 110 2Q18 2Q19 2Q20 2Q21 1Q22 2Q22 LTM 2Q22 Average Net Price (R$/ton) Paper Adjusted EBI
Slide 5: Solid operational performance and new price level yield record EBITDA for a Q2
PULP BUSINESS Solid operational performance and new price level yield record EBTIDA for a Q2, in spite of FX appreciation Sales volume (‘000 ton) Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin(%) US$ BRL R$ MM R$/ton Margin % 3,602 2,166 2,103 2,073 10,439 1,915 3,476 2,6
Slide 6: Consistent performance mitigates commodities pressure
PULP BUSINESS Consistent performance mitigates commodities pressure Pulp Cash Cost – 2Q22 vs. 1Q22 (ex-downtime – R$/ton) 868 12 (21) 854 20 (7) (18) 312 332 Commodity price effect: 407 401 R$44/ton 180 158 (31) (37) 1Q22 Δ Wood Δ Input Δ Fixed Cost Δ Energy FX 2Q22 Pulp Cash Cost – 2Q22 vs. 2Q21 (e
Slide 7: Strong operating cash lead to stable net debt even during investment cycle
FINANCIAL MANAGEMENT Strong operating cash lead to stable net debt even during investment cycle Net Debt (US$ billion) 10.5 10.5 (1.3) 0.1 0.3 0.2 (0.1) 0.9 Net debt Adjusted Total Working Dividends/ Accrued Others¹ Net Debt Mar 2022 EBITDA Capex Δ Capital Share Buyback Net Interest Jun 2022 Leverag
Slide 8: Effectiveness of hedging policy mitigates FX appreciation in EBITDA Q2
FINANCIAL MANAGEMENT Effectiveness of hedging policy mitigates FX appreciation in EBITDA Q2 and provides greater protection in portfolio roll-over MTM – Cash Flow (ZCC) (R$) Dollar futures curve Jul/2022 vs Jan/2021 +14% 1Q22 2Q22 +9% 6.14 +2.3 bn +0.8 bn Jul/2022 +7% 5.89 (1.5) bn 5.78 Cash effect
Slide 9: CAPEX - Update
FINANCIAL MANAGEMENT CAPEX - Update Guidance 2022 - Previous Guidance 2022 - Revised 0.5 16.1 13.6 2.0 5.0 5.5 7.3 R$16.1 bn 7.3 R$13.6 bn Previous Parkia and Caravelas Sustaining Revised Guidance deals¹ Guidance Early settlement for 2.6 financial efficiency 0.6 0.7 0.7 Actual 1H22: R$7.1 bn Sustain
Slide 10: Moving forward with our strategy
Moving forward with our strategy Capital Allocation Parkia and Caravelas deals¹ HIGHER CASH FLOW GENERATION Share buyback speed up and + R$1.0 bn program Cerrado Project: on time and on budget & & & & & New tissue plant in ES Expand boldly Advance in the Maintain Be “Best-in- (Virtually funded by VA
Slide 11: Pulp as a commodity
Pulp as a commodity One size does not fit all 1. Structural demand Historical Volatility of Commodities (US$)¹ growth 49% 42% 34% 2. Tissue as main end-use 28% 3. Marginal cost producer 21% 22% even more pressured 19% 17% 13% 4. Lower volatility when compared to other commodities BHKP² LME Soy Cattl
Slide 12: Q&A 2Q22 Investor Relations
Q&A 2Q22 Investor Relations www.suzano.com.br/ri ri@suzano.com