Slide 1: 3Q21 Earnings Conference Call
WY SUZONO Eatnings Conference Call
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: All-time high EBITDA, strong volumes and deleveraging to 2.7x
HIGHLIGHTS All-time high EBITDA, strong volumes and deleveraging to 2.7x Pulp: 2.7 million tons (vs. 2.5 million tons 3Q20) Sales Volume Paper1: 304,000 tons (vs. 290,000 tons 3Q20) Pulp Inventory: well below optimum operating level ESG: Adjusted EBITDA: R$6.3 billion (vs. R$3.8 billion 3Q20) o New
Slide 4: Strong sales and price combined with solid operational performance leads to record EBITDA
PAPER AND PACKAGING BUSINESS Strong sales and price combined with solid operational performance leads to record EBITDA Paper Sales¹ (‘000 tons) 700 1,158 600 Local Export +6% 950 500 750 400 288 290 304 361 300 266 550 200 101 98 84 95 350 797 100 187 193 182 209 150 0 -5 0 3Q19 3Q20 2Q21 3Q21 LTM 3
Slide 5: Record EBITDA led by high volumes despite logistics constraints
PULP BUSINESS Record EBITDA led by high volumes despite logistics constraints as well as all-time high price in BRL Sales Volume (‘000 tons) 300 0 290 0 11,00 10,526 10,00 280 0 2,673 9,000 2,549 2,537 270 0 2,527 8,000 260 0 7,000 250 0 6,000 5,000 240 0 4,000 230 0 3,000 220 0 2,000 210 0 1,000 3Q
Slide 6: Cash cost performance pressured by short-term headwinds of commodities
PULP BUSINESS Cash cost performance pressured by short-term headwinds of commodities (mainly brent and chemicals) Pulp Cash Cost 3Q21 vs. 2Q21 (ex-downtime – R$/ton) +4.5% 4 0 (8) 680 9 26 711 148 152 Commodity prices effect: 282 300 R$ 32/ton 282 292 (32) (32) 2Q21 Δ Wood Δ Input Δ Fixed Cost Δ Ene
Slide 7: Post-merger deleverage fully executed and a strong balance sheet for the new growth cycle
FINANCIAL MANAGEMENT Post-merger deleverage fully executed and a strong balance sheet for the new growth cycle Net Debt (billion) and Leverage (multiples) Amortization Schedule (US$ billion) 5.2x 5.0x In R $ 5.1x Average Cost (in US$): 4.3% p.a. Average Term: 90 months 4.8x 4.6x In US$ 4.4x 4.2x 4.0
Slide 8: Cash flow hedging strikes mark financial policy's consistency
FINANCIAL MANAGEMENT Cash flow hedging strikes mark financial policy’s consistency Portfolio Renewal – Cash Flow Hedging (ZCC) 6.89 6.12 6.10 6.06 6.04 6.19 Call (average) Put (average) 5.22 5.37 5.33 5.33 5.36 5.42 Notional (USD M) 969 731 961 508 358 176 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Average Strik
Slide 9: CAPEX execution in line with guidance
CAPEX 2021 CAPEX execution in line with guidance Capex (R$ billion) 3Q21 9M21 2021e Sustaining 1.1 3.1 4.0 Forest and Land 0.1 0.3 0.7 Expansion, Modernization and 0.1 0.3 0.5 Others¹ CERRADO PROJECT 0.2 0.4 1.0 TOTAL 1.5 4.1 6.2 ¹ Includes Port Terminals and Others, as detailed in the 3Q21 earnings
Slide 10: Responding to a call to action for COP26
ESG Responding to a call to action for COP26 Net removal of 40 million tons of carbon from the atmosphere by 2030(previous) 2025 (current)
Slide 11: Takeaways 3Q21
Takeaways TAKEAWAYS 3Q21 o Strong operational results, in spite of pressure from commodities, logistics constraints and any pulp price scenario o Leverage fully aligned with the indebteness policy and robust liquitidy for the new growth cycle o Carbon: Call to action for COP26 o Cerrado Project: Mov
Slide 12: Investor Relations
Investor Relations www.suzano.com.br/ri ri@suzano.com.br 12