Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q2 2023 Earnings Presentation
12 slides from Suzano's earnings presentation, Aug 3, 2023
Slide 1: Earnings Conference Call 2Q23
Earnings Conference Call 2Q23
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: Well prepared to navigate through the cycle
Well prepared to navigate through the cycle 3 HIGHLIGHTS Adjusted EBITDA: Liquidity3 : 1 Excluding Consumer Goods. | 2 Operating Cash Generation = Adjusted EBITDA less Sustaining Capex. | 3 Considers Finnvera credit line. | 4 Net Debt / Adjusted EBITDA in the last twelve months. Sales Volume Financi
Slide 4: Paper and Packaging Business
3,010 6,794 5,935 7,056 6,614 1,259 1,564 2,176 2,842 2,405 PAPER AND PACKAGING BUSINESS Paper Sales¹ (‘000 tons) Average Net Price (R$/ton) Stable EBITDA y-o-y, despite more challenging markets 4 2Q22 1Q23 2Q23 LTM 2Q23 792 322 1,114 198 179 178 93 70 85 291 249 263 254 416 633 708 631 37% 40% 36%
Slide 5: Pulp Business
732 719 562 2,663 2,455 2,513 PULP BUSINESS 2Q22 1Q23 2Q23 10,524 LTM 2Q23 23,465 5,600 5,336 3,190 2Q22 1Q23 2Q23 LTM 2Q23 Average FX R$ 4.92 R$ 5.20 R$ 4.95 R$ 5.16 Commercial strategy geared to market conditions 5 2,103 2,174 1,269 2Q22 1Q23 2Q23 3,602 3,737 2,783 US$ BRL 59% 58% 45% 58% LTM 2Q23
Slide 6: Pulp Business: Already unsustainable price level for an important share of the industry
PULP BUSINESS Already unsustainable price level for an important share of the industry Marginal BHKP production cost vs. BHKP price (average closing months of 2Q23) 2023 Cash Cost CIF China² - BHKP Market pulp USD/t, Kt 1 China average price (Fastmarkets FOEX) using quotations from the last weeks of
Slide 7: Pulp Cash Cost - 2Q23 vs. 1Q23
182 430 190 363 400 363 (38) 1Q23 0 Wood (21) Input 8 Fixed Cost 3 Energy (9) FX (35) 2Q23 937 918 -2% PULP BUSINESS Pulp Cash Cost - 2Q23 vs. 1Q23 (ex-downtimes – R$/ton) Improved performance with lower commodities prices and conclusion of most annual maintenance downtimes 7 Commodity price effect:
Slide 8: Cerrado Project
CERRADO PROJECT Significant progress allowing better start-up visibility 8 See here most updated video 1 Inside the fence includes investments in industrial and infrastructure. Physical Progress (inside the fence¹ ) 57% Financial Progress (inside the fence¹ ) 70% Start-up: by June 2024 Capex timelin
Slide 9: Financial Management: Disciplined capital allocation to deliver shareholder value
FINANCIAL MANAGEMENT Accumulated Cash Generation - 2H21 to 1H23 (US$ billion) Net Debt (US$ billion) Disciplined capital allocation to deliver shareholder value 9 Average cost of debt (in US$): 4.9% p.a. Average term of debt: 75 months 1 Considers capex on accrual basis. | ² Considers leasing expens
Slide 10: Financial Management: Hedging strategy mitigates impact of currency appreciation
FINANCIAL MANAGEMENT Hedging strategy mitigates impact of currency appreciation on EBITDA 10 Cash Adjusments (ZCC) R$ million Portfolio Average Jun/2023: Put / Call 5.61 6.51 67% FX gap coverage Mar/2023: US$6.3 billion Jun/2023: US$4.8 billion ZCC Notional¹ 1 Considers EUR/USD hedge with notional o
Slide 11: Takeaways
Takeaways o Cycle proof asset portfolio and business model; o Cash production cost on a downward trend; o Opportunities for liability management on the radar; o Financial discipline and long-term value creation through capital allocation; o Significant progress in strategic avenues.
Slide 12: Q&A 2Q23 Investor Relations
Q&A 2Q23 Investor Relations www.suzano.com.br/ir ri@suzano.com.br