Slide 1: Earnings Conference Call 4Q23
Earnings Conference Call 4Q23
Slide 2: Disclaimer
Disclaimer 2 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: Main strategic achievements in 2023
Main strategic achievements in 2023 3 Addressable markets ⚫ Fiber to fiber: expanding fluff business (340kt) ⚫ Expanding tissue business organically and inorganically in Brazil Structural competitiveness and growth ⚫ Modernization of Aracruz and Jacareí mills ⚫ Highest ever land bank and forest base
Slide 4: 2023: all-time-high investment cycle with no leverage pressure
2023: all-time-high investment cycle with no leverage pressure 4 HIGHLIGHTS 1 Excluding Consumer Goods. | 2 Operating Cash Generation = Adjusted EBITDA less Sustaining Capex. | 3 Considers Finnvera and IFC credit line. | 4 Net Debt / Adjusted EBITDA in the last twelve months. Adjusted EBITDA: Liquid
Slide 5: Paper and Packaging business: EBITDA in 2023 outperformed pre-pandemic levels
1,186 1,239 1,608 2,410 2,327 6,220 6,377 6,827 6,215 5,793 820 736 353 368 1,173 1,103 2,669 2,394 1,806 Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) 5 4Q22 3Q23 4Q23 2022 224 176 202 80 96 117 304 272 320 810 651 577 4Q22 3Q23 4Q22 3Q23 4Q23 2023 Paper Adjusted EBITDA and EBITDA Margin² R$
Slide 6: Pulp business: demand exceeding operational availability led to lowest inventory
831 547 572 3,931 2,999 Average FX 7,274 2,912 3,756 761 600 2,759 2,486 2,761 PULP BUSINESS Sales Volume (‘000 tons) 4Q22 3Q23 4Q23 10,600 10,215 2022 Average Net Price – Export Market ($/tons) Adjusted EBITDA and EBITDA Margin (%) 25,099 15,195 4Q22 3Q23 4Q23 2022 R$ 5.26 R$ 4.88 R$ 4.96 R$ 5.17 D
Slide 7: Pulp cash cost: continuous improvement throughout 2023
164 176 366 339 337 449 (42) 4Q22 (29) Wood (101) Input 12 Fixed Cost 6 Energy (9) FX (36) 4Q23 937 816 -13% 180 351 339 364 337 (34) 3Q23 (27) Wood (14) Input (4) Fixed Cost (2) Energy 2 FX 176 (36) 4Q23 861 816 -5% PULP BUSINESS Pulp Cash Cost – 4Q23 vs. 3Q23 (ex-downtime – R$/ton) Pulp Cash Cost
Slide 8: Cerrado Project: on time and on budget, getting ready for start-up
Total capex timeline (R$ billion) CERRADO PROJECT On time and on budget: getting ready for start-up 8 1 Inside the fence includes investments in industrial and infrastructure. Physical Progress (inside-the-fence¹) 78% Financial Progress (inside-the-fence¹) 86% 8.5 4.6 0.1 0.7 7.4 0.9 2020 2021 2022
Slide 9: Strong balance sheet maximizes post-Cerrado value creation
4.5 0.7 1.7 2.0 1.6 1.5 8.6 1.3 Net Debt (US$ billion) 9 2.0 2.6 3.0 2.0 2.7 3.1 Dec/22 Sep/23 Dec/23 In R$ In US$ ¹ Considers capex ex-maintenance and KC deal. | ² Proforma as of 02/28/2024. Figures as of 12/31/2023 adjusted by EPP rollover and IFC transactions. | ³ Finnvera and IFC credit line. |
Slide 10: Flattish 2027 guidance, offsetting 2023 inflation
Flattish 2027 guidance, offsetting 2023 inflation 10 708 685 573 30 (27) 584 470 484 1,750 1,753 2027 Previous Inflation² FX 2027 Current Cash cost SG&A + Freight Sustaining Capex TOD¹ 2027 current vs. TOD 2027 previous (R$/t) 1 Total operational disbursement at full capacity, including integrated p
Slide 11: A years startup
A 100 years startup
Slide 12: Q&A 4Q23 Investor Relations
Q&A 4Q23 Investor Relations www.suzano.com.br/ir ri@suzano.com.br