EX-99.1 2 tmb-20230301xex99d1.htm EX-99.1
Exhibit 99.1

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Earnings Conference Call 4Q22

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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,” “could,” “would,” “possible,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “estimate,” “potential,” “outlook” or “continue,” as well as the negative forms of these words, other terms of similar meaning or the use of future dates. The forward-looking statements include, without limitation, statements related to the declaration or payment of dividends, implementation of the key operational and financial strategies and investment plans, guidance about future operations and factors or trends that influence the financial situation, liquidity or operational results. Such statements reflect the current view of the management and are subject to diverse risks and uncertainties. These are qualified in accordance with the inherent risks and uncertainties involving future expectations in general, and actual results could differ materially from those currently anticipated due to various risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on diverse assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Suzano does not undertake any obligation to update any such forward-looking statements as a result of new information, future events or otherwise, except as expressly required by law. All forward-looking statements in this presentation are covered in their entirety by this disclaimer. In addition, this presentation contains some financial indicators that are not recognized by the BR GAAP or IFRS. These indicators do not have a standard meaning and may not be comparable to indicators with a similar description used by other companies. We provide these indicators because we use them as measurements of Suzano's performance; they should not be considered separately or as a replacement for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS.

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2022: Record cash generation enables further progress on strategic avenues 3 HIGHLIGHTS Adjusted EBITDA: Liquidity3,4: ¹Excluding Consumer Goods. | 2 Operating Cash Generation = Adjusted EBITDA less Sustaining Capex. | 3 Including 2023 dividend prepayment. | 4 Considers IFC/Finnvera credit lines | 5 Net Debt / Adjusted EBITDA in the last twelve months. Sales Volume Financial Management Operating Performance 10.6 million tons (in line with 2021) Pulp: 1.2 million tons (in line with 2021) Paper1 : Below optimum operational levels Pulp Inventory: Operating Cash Generation2 : Cash cost ex-downtimes : R$28.2 bn (vs. R$23.5 billion in 2021) R$22.6 bn (vs. R$18.8 billion in 2021) R$885/ton (vs. R$690/ton in 2021) US$10.9 bn (vs. US$10.4 billion in 2021) Leverage3,5: US$6.0 bn (vs. US$5.1 billion in 2021) Net debt3 : 2.0x in US$ (vs. 2.4x in US$ in 2021) Capex: In line with guidance Main Achievements People: Safety performance Culture development Progress in all strategic avenues

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PAPER AND PACKAGING BUSINESS Paper Sales¹ (‘000 tons) 4Q21 3Q22 4Q22 2021 Average Net Price (R$/ton) Paper Adjusted EBITDA2 EBITDA growth of 50% despite cost pressures 4 R$ MM R$/ton Margin % 2022 4Q21 3Q22 4Q22 2021 2022 809 820 363 353 1,172 1,173 Export market 242 211 224 96 88 80 338 299 304 1 Excluding Consumer Goods. | ² Excluding impact of Management LTI. 4Q21: R$27/ton; 3Q22: - R$1/ton ; 4Q22: - R$17/ton; 2021: -R$9/ton; 2022: R$6/ton 4,568 6,220 4,866 6,699 6,827 552 859 810 34% 43% 39% 4Q21 3Q22 4Q22 1,634 2,878 2,669 1,885 2,827 35% 39% 2021 2022 1,608 2,410 Domestic market

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613 761 630 821 831 2,722 2,797 2,759 PULP BUSINESS Sales volume (‘000 tons) 4Q21 3Q22 4Q22 10,586 10,600 2021 Average Net Price – Export Market (/ton) Adjusted EBITDA and EBITDA Margin (%) 21,439 25,099 5,755 7,665 7,274 4Q21 3Q22 4Q22 2021 R$5.58 R$5.25 R$5.26 R$5.40 High prices and solid sales volume lead to record results 5 2,114 2,741 2,636 R$ MM R$/ton Margin % 4Q21 3Q22 4Q22 2022 3,519 4,307 4,366 US$ BRL 60% 64% 61% 62% 3,307 3,931 2022 2021 2022 R$5.17 61% 2,025 2,368 Average FX

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148 292 131 163 289 340 (39) 2021 51 Wood Input 15 Fixed Cost 2 Energy (4) FX 420 (38) 2022 690 885 +28% 422 347 366 (40) 3Q22 18 Wood 24 Input 11 164 (42) 4Q22 449 FX 3 Energy (2) Fixed Cost 883 937 154 +6% PULP BUSINESS Pulp Cash Cost – 4Q22 vs. 3Q22 (ex-downtime – R$/ton) Pulp Cash Cost – 2022 vs. 2021 (ex-downtime – R$/ton) 6 Strong pressure from commodities throughout the year, easing off at year-end Commodity price effect: -R$14/ton Commodity price effect: R$102/ton Δ Δ Δ Δ Δ Δ Δ Δ Wood Input Fixed Cost Energy FX

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7 Cerrado Project On time and on budget % Physical Progress¹: (inside-the-fence² ) 3 45 82 100 2021 2022 2023 2024 4 41 79 100 2021 2022 2023 2024 % Financial Progress: (inside-the-fence) 1 Progress up to 12/31/2022. | 2 Inside the fence includes investments in industry and infra structure. See here the most updated video

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3.3 0.6 0.7 2.1 2.2 1.5 7.2 1.3 FINANCIAL MANAGEMENT Net Debt (US$ billion) Robust balance sheet and low leverage paves the way for the largest investment cycle in 2023 8 2.5 2.2 2.0 2.4 2.1 2.0 Dec/21 Sep/22 Dec/22 In R$ In US$ 1 It considers amounts related to derivative adjustments, payment of dividends, IR/CS, among others. | ² Considers capex on accrual basis, except for Parkia deal in cash basis | ³ IFC and Finnvera credit lines | 4 Considers the portion of debt with currency swaps for foreign currency. Amortization Schedule (US$ billion) Cash on hand (75% in US$) Stand-by facilities Leverage (Net debt/EBITDA LTM) Average Cost (in US$): 4.7% p.a. Average Term: 80 months Liquidity 2023 2024 2025 2026 2028 onwards 2027 6.0 10.4 10.9 1.4 1.8 Net debt Dec 2021 (5.4) Adjusted EBITDA Sustaining Capex Expansion and Modernization Capex 0.5 Working Capital 1.2 Dividends / Share buybacks 0.6 Accrued Net Interest¹ 0.4 Others Net Debt Dec 2022 Δ % of debt in fixed rate (US$)4 94% 96% 97% 97% 98% 95% Total Capex²: 3.2 IFC/Finnvera³ 1.4

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FINANCIAL MANAGEMENT Consistency of hedging policy confirmed in the results 9 Cash Flow Hedging Cerrado Project Hedging Portfolio Average Dec/2022: Put / Call 5.58 6.52 61% FX gap coverage Dec/2022: Put / Call 5.78 6.94 75% FX gap coverage MTM – Cash Flow (ZCC) Dec/2021 Dec/2022 -0.2 bn +1.8 bn 2.0 bn Cash effect Result FX @ 5.58 5.22 + 2.7 bn 0.7 bn (R$) Portfolio Average Dec/2021: US$4.0 billion Dec/2022: US$5.9 billion Notional Dec/2021: US$0.5 billion Dec/2022: US$1.8 billion Notional

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R$4.2 bn 10 Capital Allocation Shareholders Remuneration 20 million shares R$967 million 100% executed (3 months) Average price R$48.33/share 20 million shares R$937 million 100% executed (2 months) Average price R$46.84/share Authorized Volume: Up to 20 million shares % Free-float: up to 2.9%² Tenor: up to 18 months ¹ 0.2 million shares already executed (average price R$45.65, representing R$10.7 million) | 2 Reflects outstanding shares as at 2022/09/30. 3 rd Share Buyback Program¹ (October/2022) 1 st Share Buyback Program (May/2022) 2 nd Share Buyback Program (July/2022) Dividends 93% cancelled (37 million shares)

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711 925 708 557 345 (34) 42 619 75 16 (149) (134) (80) 573 401 478 470 1,669 2,022 1,750 TOD 2021 Inflation + Prices effect FX Operational Effects TOD 2022 Inflation 2023 FX Commodities Effect (assumptions) Competitiveness Initiatives Cerrado Project TOD 2027 Total Operational Disbursement – TOD (R$/t) Cerrado Project, forestry and industrial advances lead to TOD reduction 11 USD 309/t TOD 2027¹ with Cerrado vs. 2022 (R$/t) FX 5.40 Brent US$ 67/bbl Forestry radius 220 km Third-party wood 43% FX 5.16 Brent US$ 98/bbl Forestry radius 203 km Third-party wood 37% FX 5.25 Brent US$70/bbl Forestry radius 173 km Third-party wood 23% USD 392/t USD 333/t Cash cost SG&A + Freight Sustaining Capex 1 Total operational disbursement at full capacity, including integrated pulp volumes. | 2 Inflation -> 2022: IPCA: 5.8%, INPC: 5.9% e IGPM: 5.5% | 2023: IPCA: 5.2%, INPC: 4.7% and IGPM: 3.2%. | 3 Higher-than-expected inflation indices for 2022 (estimated vs. actual) + expected inflation índices for 2023 | 4 Price pressure largely on forestry activities such as silviculture and land leasings | 5 Forestry opex and capex initiatives for greater structural competitiveness of the forest base in the future. ~R$3.8 bn of savings per year TOD 2027 actual vs. TOD 2027 previous (R$/t) Cash cost SG&A + Freight Sustaining Capex 620 657 689 708 560 89 593 137 593 24 573 320 339 444 470 1,500 1,589 1,726 1,750 2027 Previous Inflation 2027 (+inflation) Prices effect 2027 (+inflation+prices effect) Operational Plan 2027 Actual 2 2 3 4 5

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2022 strategic accomplishments at a glance 12 Be “Best-in-Class” in the Total Pulp Cost vision ⚫ Parkia and Caravelas acquisitions ⚫ Aracruz and Jacareí retrofits ⚫ New berth and warehouse in Itaqui port ⚫ Operational stability record ⚫ ESG indexes and ratings progress ⚫ Biomas launch ⚫ Advances on D&I Maintain relevance in Pulp, through good projects Advance in the links of the chain, always with competitive advantage Expand boldly into New Markets Play a leading role in sustainability ⚫ Largest expansion of land bank and forestry base ⚫ Cerrado Project ⚫ Acquisition of Kimberly Clark’s tissue business in Brazil ⚫ Announcement of a potential tissue project in Aracruz (60kt) ⚫ Startup Woodspin / Spinnova ⚫ Startup of MFC mills in Finland and Limeira ⚫ Suzano Ventures launch ⚫ Innovation ecosystem development

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Q&A 4Q22 Investor Relations www.suzano.com.br/ri ri@suzano.com