Slide 1: Earnings Conference Call 4Q22
Earnings Conference Call 4Q22
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: 2022: Record cash generation enables further progress on strategic avenues
HIGHLIGHTS 2022: Record cash generation enables further progress on strategic avenues Sales Operating Financial Main Volume Performance Management Achievements Pulp: Adjusted EBITDA: Liquidity3,4: People: 10.6 million tons R$28.2 bn US$6.0 bn Safety performance (in line with 2021) (vs. R$23.5 billio
Slide 4: EBITDA growth of 50% despite cost pressures
PAPER AND PACKAGING BUSINESS EBITDA growth of 50% despite cost pressures Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) Paper Adjusted EBITDA2 Export market Domestic market R$ MM R$/ton Margin % 2,878 2,669 2,410 6,827 1,608 6,699 1,634 338 1,172 1,173 859 2,827 810 299 304 6,220 96 353 363 88
Slide 5: High prices and solid sales volume lead to record results
PULP BUSINESS High prices and solid sales volume lead to record results Sales volume (‘000 tons) Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin (%) US$ BRL R$ MM R$/ton Margin % 4,366 4,307 2,741 3,931 10,600 2,368 10,586 2,636 831 2,025 2,722 2,797 2,759 821 2,114 25,099
Slide 6: Strong pressure from commodities throughout the year, easing off at year-end
PULP BUSINESS Strong pressure from commodities throughout the year, easing off at year-end Pulp Cash Cost – 4Q22 vs. 3Q22 (ex-downtime – R$/ton) +6% 937 883 24 11 (2) 3 18 347 Commodity price 366 effect: -R$14/ton 422 449 154 164 (40) (42) 3Q22 Δ Wood Δ Input Δ Fixed Cost Δ Energy FX 4Q22 Pulp Cash
Slide 7: Cerrado Project
Cerrado Project See here the most updated On time and on budget video % Physical Progress¹: (inside-the-fence²) 100 82 45 3 2021 2022 2023 2024 % Financial Progress: (inside-the-fence) 100 79 41 4 2021 2022 2023 2024 1 Progress up to 12/31/2022. | 2 Inside the fence includes investments in industry
Slide 8: Robust balance sheet and low leverage paves the way for the largest investment cycle in 2023
FINANCIAL MANAGEMENT Robust balance sheet and low leverage paves the way for the largest investment cycle in 2023 Net Debt (US$ billion) 0.6 0.4 1.2 0.5 (5.4) 1.8 10.4 1.4 10.9 Total Capex²: 3.2 Net debt Adjusted Sustaining Expansion and Dec 2021 EBITDA Capex Modernization Δ Working Capital Dividend
Slide 9: Consistency of hedging policy confirmed in the results
FINANCIAL MANAGEMENT Consistency of hedging policy confirmed in the results Cash Flow Hedging Put / Call MTM – Cash Flow (ZCC) (R$) Portfolio Dec/2022: 61% FX gap Dec/2021 Dec/2022 Average coverage 5.58 6.52 -0.2 bn +1.8 bn Notional 2.0 bn Dec/2021: US$4.0 billion Dec/2022: US$5.9 billion + Cash eff
Slide 10: Capital Allocation
Capital Allocation Shareholders Remuneration 1st Share Buyback 2nd Share Buyback 3rd Share Buyback Dividends Program Program Program¹ (May/2022) (July/2022) (October/2022) 20 million shares 20 million shares Authorized Volume: Up to 20 million shares R$967 million R$937 million R$4.2 bn 100% execute
Slide 11: Cerrado Project, forestry and industrial advances lead to TOD reduction
Total Operational Disbursement – TOD (R$/t) Cerrado Project, forestry and industrial advances lead to TOD reduction TOD 2027¹ with Cerrado vs. 2022 (R$/t) 345 42 2,022 75 16 1,669 1,750 (34) 478 (149) (134) (80) 470 Sustaining Capex 401 619 SG&A + Freight 557 573 925 ~R$3.8 bn of savings per year 71
Slide 12: 2022 strategic accomplishments at a glance
2022 strategic accomplishments at a glance Be “Best-in-Class” in the Maintain relevance in Pulp, Advance in the links of the chain, Total Pulp Cost vision through good projects always with competitive advantage ⚫ Parkia and Caravelas acquisitions ⚫ Largest expansion of land bank and ⚫ Acquisition of
Slide 13: Q&A 4Q22 Investor Relations
Q&A 4Q22 Investor Relations www.suzano.com.br/ri ri@suzano.com