Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q1 2023 Earnings Presentation
11 slides from Suzano's earnings presentation, Apr 28, 2023
Slide 1: Earnings Conference Call 1Q23
Earnings Conference Call 1Q23
Slide 2: Disclaimer
Disclaimer 2 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: Flattish net debt amid strong investment cycle
Flattish net debt amid strong investment cycle 3 HIGHLIGHTS Adjusted EBITDA: Liquidity3 : 1 Excluding Consumer Goods. | 2 Operating Cash Generation = Adjusted EBITDA less Sustaining Capex. | 3 Considers IFC/Finnvera credit lines. | 4 Net Debt / Adjusted EBITDA in the last twelve months. Sales Volume
Slide 4: Paper and Packaging Business
2,636 3,010 812 330 1,142 6,616 5,349 6,827 7,056 1,212 1,412 1,873 2,669 2,842 PAPER AND PACKAGING BUSINESS Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) EBITDA/ton growth driven by higher prices, despite lower volume 4 1Q22 4Q22 1Q23 LTM 1Q23 Exports Domestic 187 224 179 93 80 70 280 304 249
Slide 5: Pulp Business: Solid volumes in a more challenging market scenario
2,424 639 831 719 2,382 2,759 2,455 PULP BUSINESS 1Q22 4Q22 1Q23 10,673 LTM 1Q23 25,875 4,560 7,274 5,336 1Q22 4Q22 1Q23 LTM 1Q23 Average FX R$5.23 R$5.26 R$5.20 R$5.16 Solid volumes in a more challenging market scenario 5 1,915 2,636 2,174 1Q22 4Q22 1Q23 3,345 4,366 3,737 US$ BRL 57% 61% 57% 62% LT
Slide 6: Pulp Business: Stable cash cost performance
179 407 430 312 363 (31) 1Q22 51 Wood 32 Input 2 Fixed Cost (7) Energy (9) FX 182 (38) 1Q23 868 937 +8% 164 449 182 366 430 363 (42) 4Q22 (3) Wood (16) Input 17 Fixed Cost 4 Energy (2) FX (38) 1Q23 937 937 0% PULP BUSINESS Pulp Cash Cost – 1Q23 vs. 4Q22 (ex-downtime – R$/ton) Pulp Cash Cost – 1Q23 v
Slide 7: Cerrado Project: On time and with no cost overrun
CERRADO PROJECT On time and with no cost overrun 7 ¹ Indexed contracts + commodity price increases | ² Make or buy alternatives for higher efficiency and/or risk mitigation such as chemical plant (sulfuric acid), forestry equipment and outbound logistics (rolling stock and export terminal). 3 Note:
Slide 8: Financial Management: Net Debt and Liquidity
3.4 0.6 0.7 2.1 2.2 1.5 7.2 1.3 FINANCIAL MANAGEMENT Net Debt (US$ billion) Financial discipline and assets’ competitiveness ensure a sound balance sheet during investment cycle 8 2.1 2.0 1.9 2.4 2.0 1.9 Mar/22 Dec/22 Mar/23 In R$ In US$ 1 It considers amounts related to derivative adjustments, paym
Slide 9: Financial Management: Hedging mitigates currency appreciation impact on P&L
FINANCIAL MANAGEMENT Hedging strikes mitigate currency appreciation impact on P&L 9 Operating Cash Flow + Cerrado Project Hedging Portfolio Average Mar/2023: Put / Call 5.63 6.57 67% FX gap coverage Dec/2022: US$7.7 billion Mar/2023: US$7.1 billion Notional² FX Spot @ 5.01¹ 1 It considers closing in
Slide 10: Takeaways
10 Takeaways ⚫ Focus on creating long-term value through successive advances along strategic avenues; ⚫ Agility in carrying out the commercial strategy for pulp and paper businesses; ⚫ Cash cost showing a downward trend, at current commodity price levels; ⚫ Consistent conservative financial policies
Slide 11: Q&A 1Q23 Investor Relations
Q&A 1Q23 Investor Relations www.suzano.com.br/ir ri@suzano.com.br