Suzano S.a. · BMFBOVESPA:SUZB3

Suzano — Investor Day (March 2022)

39 slides from Suzano's investor day presentation, Mar 30, 2022

  1. Slide 1: Suzano Day 2022

    7 ‘vo SUZONO DAY 2022

  2. Slide 2: Avenues 2022

    2 Play a leading role in sustainability Be“Best-in-Class”in the Total Pulp Cost vision Advance in the links of the chain, always with competitive advantage Maintain relevance in Pulp, through good projects Expand boldly intoNew Markets AVENUES 2022

  3. Slide 3: Play a leading role in sustainability

    Play a leading role in sustainability 3

  4. Slide 4: Towards a regenerative business for a regenerative society

    Some of the main topics:Savethedate2ndESG CallJune23rd, 2022 Towards a regenerative business for a regenerative society Climate Change Biodiversity Social Development 4

  5. Slide 5: Continuous improvement on sustainability governance

    Continuousimprovementonsustainabilitygovernance5 Variable compensation(C-level1) Since2020–Targets linked to D&ISince 2021 –Targets also linked to other material themes 25%50%17%25%20212022 Climate Change Social Development1C-level includes Statutory and Non-statutory officers Some of 2021 highlight

  6. Slide 6: Expand boldly into New Markets

    Expand boldly into New Markets 6

  7. Slide 7: Important progress in our bio-businesses agenda

    2022202220222022 Important progress in our bio-businesses agenda7IdentificationofPotentialPartnersSelection of technology partnersPilotProjectCommercialagreementsCommercialInvestmentsMonetizationRoutes 2021 ¹Analysis of Suzano'sStrategy and New Business Team based on reports from Spinnova, Ensyn, Ta

  8. Slide 8: In textiles, Spinnova/Woodspin is becoming a reality

    In textiles, Spinnova/Woodspinis becoming a reality Commercial plant of 1k ton/yr8 19%81%€ 462M¹¹Market caponMar 15 2022 Staple Fiber MFC Start of production: Dec. 22

  9. Slide 9: Our planted wood-based fiber with leading brands

    The North Face develops new eco-sustainablefabricsOur planted wood-based fiber with leading brands9 Spinnovaand adidas introduce the all-new hoodie, the first adidas product made with the sustainable SPINNOVA "The H&M Group’s ambition is to become fully circular. We see Spinnovaas having great poten

  10. Slide 10: Our carbon business is about to be launched

    Our carbon business is about to be launched10 Continuous GHG projectidentification:–Planted forests projects–Restoration and conservation of native forests–Energy efficiency, renewable energy and fuel conversionFirst project submitted –Robust additionality criteria–In validationphasewithVerra¹Carbon

  11. Slide 11: Increasing global pressures for sustainable consumption

    Increasing global pressures for sustainable consumptionSingle-use-plasticban 7%44%Announcedas of2020New announcements (2021 and 2022)AustraliaBrazilCanadaChile USAEU+ 1dozenothercountriesWorld consumption of single-use plastics¹India MexicoUnited KingdomTaiwan Source: Smithers,FastmarketRisi, public

  12. Slide 12: New products in convergence with consumption megatrends

    12 60 20182019202020212022eKTonNew products in convergence with consumption megatrends Illustrative images: the volumes are composed of the totality of products developed in the last 36 months, in addition to those represented by images.

  13. Slide 13: Advance in the links of the chain, always with competitive advantage

    Advance in the links of the chain, always with competitive advantage 13

  14. Slide 14: Tissue Packaging Fluff Paper

    14 Tissue Packaging Fluff Paper

  15. Slide 15: Tissue

    15 Tissue

  16. Slide 16: Competitive environment confirms ongoing trends

    Competitive environment confirms ongoing trendsTissueMarket -Brazil (2009 – 2020 1 ) 8%89%% CategoriesAt Home 2020:World 16%55%22%7%Source: 1RISI. 2Euromonitor. 3Nielsen Retail INA. Based on market share of players prior to 2021. PaperTowels ToiletPaper Facial Tissues PaperTablewareKg per capita per

  17. Slide 17: Market presence will lead to higher profitability

    Market presence will lead to higher profitability Weighted Distribution % (Total Brazil) Brand Awareness % Jumbo Rolls Production Capacity 150 Kt MaximumNominal Capacity 2H 20201H 20192H 20212H 20191H 20201H 2021 Brand 6Brand 2Brand 1Brand 3Brand 5Brand 4Brand 7 1Q214Q21 +10 p.p 57595557567572735952

  18. Slide 18: Growth opportunities: organic and inorganic

    18Lower competitiveness of regional players' assetsTrend of consolidation by large players Growing demand for two-ply and three-ply productsMarket TrendsGrowthOpportunities INORGANIC (REGIONAL ) ORGANIC Opportunity for growth, organically or via M&A Production and sales reach 100% installed capac

  19. Slide 19: Maintain relevance in Pulp, through good projects

    Maintain relevance in Pulp, through good projects 19

  20. Slide 20: BHKP organic demand growth by 4.7 Mt in the next five years

    BHKP organic demand growth by4.7 Mt in the next five years20 36.4 41.1 20211 + 0.9 Mt/y Source: 1PPPC G100 Report (Dec.2021). | Estimates according to Suzano BI | Scenario does not include possible impact from Russia/Ukraine conflict.Additional demand drivers: Fiber to Fiber and Fossil to FiberOver

  21. Slide 21: Global tissue industry room for increasing BHKP furnish

    21 Source: Suzano BI, Fastmarkets RISI, Hawkins Wright, Brian McClay. ¹Includes a small proportion of nonwood in China and integrated pulp. | Scenario does not include possible impact from Russia/Ukraine conflict. Fibers Share in World Tissue Production (%) BSKP Share at TissueBHKP Share at TissueRC

  22. Slide 22: Packaging industry in China to boost BHKP demand

    Packaging industry in China to boost BHKP demandSource: Suzano BI, Fastmarkets RISI, Hawkins Wright, Brian McClay. | ¹Expected 900kt (China) and 100kt (Rest of the World). |Scenario does not include possible impact from Russia/Ukraine conflict.CartonboardProduction in China 55%39%~35%45%61%~65%Duple

  23. Slide 23: BHKP demand expected to grow at least 6.7 Mt until 2026

    36.441.143.14.72.02021OrganicGrowth2026eFiber toFiber2026eAdditionalFiber toFiberFossil toFiberBHKP demand expected to grow at least 6.7 Mt until 202623Source: Suzano BI | 1Higher participation of BHKP in Cartonboardand Tissue| 2Only illustrative. | Scenario does not include possible impact from Rus

  24. Slide 24: Supply expected to grow 6.9Mt in BHKP in the next five years

    Supply expected to grow 6.9Mt in BHKP in the next five yearsSource: Suzano BI | RISI. | ²Hawkins Wright | Scenario doesn’t include possible impact from Russia/Ukraine conflict. ¹ Historical Average: 2013-2016.Global BHKPNet Capacity Growth20212026e 40.647.5 +1.3 Mt/y Supply risksHistorical unplanned

  25. Slide 25: Five years ahead: healthy operating rate

    Five years ahead:organic demand growth and fiber substitution provides healthy operating rate25Source: Suzano BI | Scenario does not include possible impact from Russia/Ukraine conflict. 36.443.140.647.520212026e Demand Capacity 90% O.R. 91% MtMt

  26. Slide 26: Inflationary pressures setting a new threshold for pulp prices

    Inflationary pressures on producers cost setting a new threshold for pulp prices 26Source: Hawkins Wright, March 2022. Nominal terms and assuming fixed FX rates | Scenario does not include possible impact from Russia/Ukraine conflict. BHKP marginal cost of production vs BHKP price (avg. per quarter)

  27. Slide 27: Cerrado Project: A well defined path to start-up

    Physicalprogress(%)Inside-the-fence 43 821003 Dec2021Dec2022Dec20232H24 CerradoProject:A well defined path to start-up 2022 Targets –Completion of infrastructure works–Arrival of first equipments–Start of electromechanical assembly of industrial plant27 4%38%37%21%2021202220232024Total CapexTimeline

  28. Slide 28: Cerrado Project: greater efficiency in energy surplus generation

    Cerrado ProjectGreaterefficiencyin energysurplusgeneration(MWh/ton) 0.140.630.23SuzanoAs isCerradoProjectSuzano To beNote: Total capacityincludes integratedpulpvolume+64% 28

  29. Slide 29: Be Best-in-Class in the Total Pulp Cost vision

    Be “Best-in-Class”in the Total PulpCost vision 29

  30. Slide 30: Enhancing structural competitiveness

    Suzano Day 2022 Suzano Day 2021 Enhancing structural competitiveness 30

  31. Slide 31: Total Operational Disbursement 2027 with Cerrado vs. 2021

    Total Operational DisbursementTOD 20271withCerrado vs. 2021 (R$/ton) USDExposure11%69%15% 706711620460347557560418401320TOD 2019FX & InflationTODPerformance-262FX -14TOD 2021 82Inflation20221,669 -150TODPerformance -87CerradoProjectTOD 2027 w/ Cerrado²1,5001,584 FX 3.95Brent US$64/bblForestryradius2

  32. Slide 32: Low execution risk: strong track record

    Low execution riskStrong track record¹Does notinclude projectsundercurrentexecution. Considerscapacityatstart-upandSuzano’sprojectsinclude capacitiesofformercapacities. | 2Considers 50% ofthejoint operationwithStoraEnsoatVeracel.³https://www.pmi.org/about/awards/winners/past-award/project-of-the-yea

  33. Slide 33: Low leverage risk: cash generation supports investment cycle

    Low leverage riskCash generation supports investment cycleNote: Notincludingprojectsundercurrentexecution| ¹ 2024 Sell-sideestimates: Goldman Sachs (Mar/22), HSBC (Fev/22), Itaú BBA (Fev/22), Morgan Stanley (Fev/22) andScotiabank(Jan/22). ²S&P -ReportDec-21 | Fitch –Sector ReportJan-22 | Moody’s –No

  34. Slide 34: Low leverage risk: unique financial condition

    Low leverage risk Unique financial condition34¹Last twelve months (according to earnings release just before announcement) | ²Cash on hand and RCFCapexinside-the-fence/EBITDA LTM¹(US$) 3.02.62.83.91.90.7Montes delPlataImperatrizGuaíba IIPuma ITrês LagoasIICerrado Capex inside-the-fence/Liquidity2(US

  35. Slide 35: Lower price risk: higher cost competitiveness

    Lower price risk Higher cost competitiveness35¹Source: Hawkins Wright, December 2021 -FX considered by the consultant of R$/US$ 5.35. | ²Hawkins Wright estimates for 4Q22.Even more competitive BHKP Total Operational Cost (US$/t)1 53152750350349849445044841138934931030011610560 280JapanUSFinlandChina

  36. Slide 36: Solid balance sheet: amortization schedule

    3.81.71.67.51.3 0.40.51.05.10.70.30.62.02.18.5Liquidity4Q21202220232024202520262027onwards1FloatingFixedInterest rate increase scenarioSolid balance sheetAmortization Schedule –Fixed vs. Floating rate(USD million)¹Stand by facilities partially contracted in February 2022, according to 4Q21 earnings

  37. Slide 37: Interest rate increase scenario: hedging overview

    Interest rate increase scenarioHedging overview37Dollar futures curveMar/2022 vs Jan/2021Mar/2022Jan/2021 Averagestrikes (R$/US$):Put@5.49Call@6.47Months Currentportfolio (US$ 4.5 billion)¹¹ZCC: US$3,969 million. | ZCC Cerrado: US$525 million. | NDF: US$30 million.1234567891011121314151618 4.815.215

  38. Slide 38: Outlook

    OUTLOOK Ambidexterity between short and long term Addressable market expansion ESG Protagonism Solid track record on capital allocation 38

  39. Slide 39: Thank you!

    vr THONK YOU!

Suzano — Investor Day (March 2022) on 6ix