Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q3 2022 Earnings Presentation
14 slides from Suzano's earnings presentation, Oct 28, 2022
Slide 1: Earnings Conference Call 3Q22
Earnings Conference Call 3Q22
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: Record cash generation and progress on strategic agenda
HIGHLIGHTS Record cash generation and progress on strategic agenda Sales Operating Financial Strategic Volume Performance Management Avenues Pulp: Adjusted EBITDA: Liquidity : New share buyback 2.8 million tons R$8.6 bi US$4.7 bi program (vs. 2.7 million tons in 3Q21 (vs. R$6.3 billion in 3Q21 and 2
Slide 4: Strong markets and operating efficiency drive record EBITDA and margin reaches 43%
PAPER AND PACKAGING BUSINESS Strong markets and operating efficiency drive record EBITDA and margin reaches 43% Paper Sales¹ (‘000 tons) Exports Local 304 299 1,207 288 290 291 95 88 369 101 98 93 193 209 198 211 838 187 3Q19 3Q20 3Q21 2Q22 3Q22 LTM 3Q22 Average Net Price (R$/ton) Paper Adjusted EBI
Slide 5: Price increases and volume growth drive all-time high EBITDA and EBITDA/ton
PULP BUSINESS Price increases and volume growth drive all-time high EBITDA and EBITDA/ton Sales volume (‘000 tons) Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin(%) US$ BRL R$ MM R$/ton Margin % 4,307 2,741 2,140 2,232 10,563 2,103 3,711 2,797 2,673 2,663 23,580 3,602 821
Slide 6: Operating cycle as planned, but still pressured by commodities
PULP BUSINESS Operating cycle as planned, but still pressured by commodities Pulp Cash Cost – 3Q22 vs. 2Q22 (ex-downtime – R$/ton) +3% 854 883 16 10 (5) (3) 11 332 Commodity price 347 effect: R$18/ton 401 422 158 154 (37) (40) 2Q22 Δ Wood Δ Input Δ Fixed Cost Δ Energy FX 3Q22 Pulp Cash Cost – 3Q22 v
Slide 7: Robust balance sheet benefited by higher cash generation enables capital allocation in strategic avenues
FINANCIAL MANAGEMENT Robust balance sheet benefited by higher cash generation enables capital allocation in strategic avenues Net Debt (US$ billion) 10.7 10.7 0.6 0.4 0.4 0.7 (5.0) 1.6 1.3 Total Capex: 2.9 Net debt Adjusted Sustaining Expansion and Sep 2021 EBITDA Capex Modernization Δ Working Capit
Slide 8: Refining of hedging policies amid FX scenario enhances portfolio effectiveness
FINANCIAL MANAGEMENT Refining of hedging policies amid FX scenario enhances portfolio effectiveness Heding Policies Old Net Debt in US$ Cash Flow New (40% to 75% of exposure) 90% 95% 105% 110% 0 months 18 months 24 months Cash Flow Hedging Dollar futures curve¹ (October 2022) Put / Call Sept/2022: F
Slide 9: CAPEX update – 2022 guidance reaffirmed
FINANCIAL MANAGEMENT CAPEX update – 2022 guidance reaffirmed 3Q22 (R$ billion) 9M22 (R$ billion) 2022e (R$ billion) 1.4 3.9 5.5 1.9 R$4.0 Bn 4.4 R$11.2 Bn 7.3 R$16.1 Bn 0.6 2.6 2.4 0.1 0.5 0.7 Sustaining Land and Forests Expansion, Modernization, Port Terminals and others Cerrado Project 9
Slide 10: Capital Allocation
Capital Allocation Shareholders Remuneration - 2022 1st Share Buyback 2nd Share Buyback 3rd Share Buyback Dividends Program Program Program (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$1.8 bn 100% c
Slide 11: Capital Allocation: Cerrado Project - update
Capital Allocation Cerrado Project - update % Physical Progress¹: (inside-the-fence²) 100 82 43 31% 3 2021 2022 2023 2H24 % Financial Progress: (inside-the-fence) 100 79 42 24% 4 2021 2022 2023 2H24 1 Progress up to 09/30/2022. | 2 Inside the fence includes investments in industry and infra structur
Slide 12: Advance in the links of the chain, always with competitive advantage
Capital Allocation Advance in the links of the chain, always with competitive advantage 2017 2020 2022 Production and sales Start of production in Production and sales reach reach 100% installed Mucuri and Imperatriz 100% installed capacity capacity (150kt) Suzano acquires Expansion of conversion FA
Slide 13: Acquisition of Kimberly Clark tissue business in Brazil
Capital Allocation Acquisition of Kimberly Clark tissue business in Brazil o Business segments: Tissue-at-home and away-from-home o Assets: US$175 • 1 plant in São Paulo (~130 kt) million¹ • Intellectual property (“Neve” brand and licensing for global to be paid brands for Brazilian markets) on clos
Slide 14: Q&A 3Q22 Investor Relations
Q&A 3Q22 Investor Relations www.suzano.com.br/ri ri@suzano.com