Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Corporate Update (November 2021)
16 slides from Suzano's corporate update, Nov 5, 2021
Slide 1: Cerrado Project
Cerrado Project November 5th, 2021
Slide 2: Moving forward with our long-term strategy
⚫ Improve competitiveness with the lowest cash production cost ⚫ Economies of scale ⚫ Attractive returns even in more adverse scenarios ⚫ Contributing to Company’s sustainability goals ⚫ Solid long-term demand growth Strategic Reasoning Strategic Avenues Maintain relevance in Pulp, through good proj
Slide 3: Global Pulp Demand
3 Global Pulp Demand(1) Organic growth and expansion of addressable market support demand for hardwood pulp in the long run Current Demand Organic Growth Fiber to Fiber Fossil to Fiber Expanded potential Future Demand ~1 million tons/year ⚫ Reduction of RCP/SOP availability ⚫ Cost competitiveness ⚫
Slide 4: 2H24 Start-Up Highlights
2H24 Start-Up Highlights Mato Grosso do Sul State Ribas do Rio Pardo Santos Port São Paulo State Industrial Capex (1) : Total Capex (1) : The lowest cash production cost of our asset base 2.55 M tons/year Nominal Capacity Significant contributions to 2030 Agenda R$14.7 bn R$19.3 bn 4 (1) Expected.
Slide 5: Forestry: Optionalities for forest base formation
Forestry Optionalities for forest base formation 5 MS CURRENT Base CERRADO Base ~600 K hectares (1) Include own and third-party wood. ~90% of wood already secured(1) for operations up to 2030 (1st forestry cycle) 100% of wood requirement already guaranteed for 2H24 start-up
Slide 6: Forestry: Average distance from forest to mill
Forestry Average distance from-forest-to-mill and operations with indisputable competitiveness 6 ~ 220 156 140 Current Suzano Structural Suzano without Cerrado Structural Suzano with Cerrado Average distance from-forest-to-mill (km) Structural average radius(1) of 65 km only Highly Automated Forestr
Slide 7: Industrial: Global cutting edge for competitiveness and sustainability
Industrial Global cutting edge for competitiveness and sustainability ⚫ Gains in scale with a single pulp production line ⚫ 180 MW of surplus renewable energy ⚫ Fossil-Fuel-Free technology 7 Over 2.0 million tons of production in the first 12 months of operation
Slide 8: Main suppliers with solid experience in our industry
Process Suppliers Systems Chemical Plant Industrial Main suppliers with solid experience in our industry 8 In definition
Slide 9: Logistics: Optionalities for outbound logistics
9 (1) Expected | (2) FX@ 5.25 | (3) Structural cash production cost and sustaining capex with wood sourcing in regime. (4) 40% realized up to 3Q21. Note: all figures as of 2021 (real terms). Logistics Optionalities for outbound logistics 9 Negotiations in progress with through Northern Rail Network
Slide 10: Financial Overview
10 (1) Expected | (2) FX@ 5.25 | (3) Structural cash production cost and sustaining capex with wood sourcing in regime as from the beginning of second forestry cycle. (4) 40% realized up to 3Q21. Note: all figures as of 2021 (real terms). Do not include inflation and FX impacts in the next years. Fi
Slide 11: Strong competitiveness provides attractive returns in almost all scenarios
480 500 520 540 560 580 600 4.50 4.75 5.00 5.25 5.50 5.75 6.00 Strong competitiveness provides attractive returns in almost all scenarios 11 Sensitivity Analysis (1) - IRR in real terms in BRL (% p.a.) Net Pulp Price (US$/ton) FX (US$/R$) IRR > WACC (1) Average FX and net pulp price in perpetuity.
Slide 12: Strong liquidity, low debt maturities and market access
12 (1) As at 2021/09/30. MTM Hedge with CETIP calculation methodology considering FX D-1 (end-FX at R$ 5.44). 3.5 0.5 0.5 0.3 1.1 2.3 9.8 0.2 0.1 0.1 0.4 0.4 3Q21 Liquidity 3M2021 2022 2023 2024 2025 2026 onwards Strong liquidity, low debt maturities in the coming years and market access Debt Amorti
Slide 13: Continuous focus on financial discipline throughout the investment cycle
13 Continuous focus on financial discipline throughout the investment cycle Existing contingency plan as required by the indebtedness policy Financial Policies Rating – Investment Grade Indebtedness Net Debt / EBITDA ratio (US$) 1.0x to 3.0x Normal Cycles 1.0x to 3.5x Investment Cycles Dividends The
Slide 14: Significant progress on long-term commitments towards the 2030 Agenda
14 (1) Sustainable Development Goals Significant progress on long-term commitments towards the 2030 Agenda Related SDG(1) Commitment Generate clean energy Combat climate crisis & Conserve biodiversity Reduce poverty & Ensure education Acting Pillars: ⚫ Education ⚫ Job generation ⚫ Income generation
Slide 15: Takeaways
15 Takeaways Suzano will become even more competitive and secure it’s leading position to meet the long-term growth in demand Significant contribution to meet long-term sustainability goals Teams and suppliers with proven experience in successful pulp projects Financial discipline across the investm
Slide 16: Q&A Investor Relations
Q&A Investor Relations www.suzano.com.br/ir ri@suzano.com.br