Suzano S.A.

Ladies and gentlemen, thank you for holding and welcome to Suzano's conference call to discuss the results for the first quarter of 2020-21. We would like to inform that all participants will be in a listen-only mode during the presentation of Mr. Walter Schalke, Chief Executive Officer Marcelo Bacci, Financial and Investor Relations Executive Officer Fabio Almeida, Paper and Packaging Executive Officer Leonardo Grimaldi, Pope Commercial Executive Officer, and Aires Galhardo, Pope Operation Executive Officer. After the company's remarks are completed, there will be a question and answer session when further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Susanus Management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. You should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Suzano and could cause results to differ materially from those expressed in such forward-looking statements. Now, I would like to turn the floor over to Mr. Walter Schalka. Please, Mr. Walter, you may proceed.

Good morning and good afternoon to everyone. It's a great pleasure to be with you today. Welcome to the first quarter results video conference of SUSANA. With us here, we have all the executive committee. At the end of the session, we'll be ready to answer your on a Q&A session. Today, team, it's a very important day. I think it's a historical day for us. We are announcing not only extremely good operational results, but we are preparing the company for the future. As you may know, we have been discussing with you for several times about several capital allocation alternatives that we have, and one of them would be to keep our relevance on the pulp market for the future. And we are announcing today, under certain precedent conditions, the approval of the Projeto Cerrado that we are going to share with you during this session. We'd like to start presenting to you the operational highlights that we had on the first quarter. First, mentioning about the pulp volume. We were able to sell 2.7 million tons in this quarter. We have yet to match all the price in government on this region, as things are lagging in this process, and in specific geographic states. On the paper market, we had extremely good performance with sales that come back at the same level that we had before the COVID-19 issue, comparing with the first quarter of 2019. On the pulp inventories, we are very stable comparing Marcos Moreno Chagas We had an operating cash flow of 3.9 billion reais. and this could lead us to deliver the company at a faster pace as we are going to mention to you in a few moments. Our cash cost was 623 reais per ton, extremely competitive but I'd like to leave a warning to you at this point of time that the brand prices and exchange rate FX and combining with higher chemical costs Thank you very much. Thank you. The benefit of higher prices and better effects on our results and leverage going down at a very fast pace. End of last year was 4.3, right now is 3.8 and we are approaching the level on our financial policies that have to be between two and three times and three and a half times during the expansion of projects. Our financial discipline is critical for us. We are going to discuss in a matter of moments about our new project, the Projeto Cerrado, and the conditions under this project. Now I'm going to pass to Fabio that is going to show you our performance on the packaging and paper business. The floor is yours, Fabio.

Walter, Fabio is having problems in connection. I'm back. Okay, great.