Suzano S.A.

Ladies and gentlemen, thank you for holding, and welcome to Suzano's conference call to discuss the results for the second quarter of 2021. We'd like to inform you that all participants will be in a listing mode during the presentation of messages. Valter Schalka, Chief Executive Officer, Marcelo Batti, Financial Investor Relations Executive Officer, Fabio Almeida, Paper and Packaging Executive Officer, Leonardo Grimaldi, Public Commercial Executive Officer, and Aires Galhardo, Public Operations Executive Officer. After the company's remarks are completed, there will be a question and answer session where further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Before proceeding, please beware that any forward-looking statements are based on beliefs and assumptions of Suzano's management. and all information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depends 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 maturely from those expressing such forward-looking statements. Now, I'd like to turn the floor over to Mr. Walter Schalke. Please, Mr. Walter Schalke, you may proceed.

Good morning, everyone. It's a great pleasure to be with you here. Welcome to the session of the second quarter result 2021 of SUSANO. With me here, we have all the executive committee and we'll be ready for a Q&A session after our presentation. I would like to present to you all-time record quarter EBITDA and free cash flow of the company, despite shorter than expected price realization, with very good volumes in pulp and paper and a solid operational performance. What reinforced Our competitiveness and resilience. I think it's very important to bring to the surface our very robust balance sheet with long-term and low cost of debt and high liquidity, what is critical for the high-intensive critical industry that we are in. We continue to reduce our leverage, reaching 3.3 times net debt over EBITDA, and we will continue to pursue our target of three times between two and three times there is on our financial policy what reinforce our financial discipline. It's very important as well to present to you that we have been pursuing five different avenues on our strategic view for the future. and we are very pleased to see developments in all of them. One of them is related with the expansion on our Pope relevance that is right now presented by Cerrado Project. We are not going to share any additional information on this project with you today since we are continuing to negotiate with different vendors at the different islands of the project. As we get all the agreements with the different islands, we are going to present to have the green light of our board that hopefully is going to happen in the coming months. It's very important to mention as well our ESG developments. We had our ESG call during this quarter. During the second quarter, where we present our new targets on biodiversity and as well, our new sustainability-linked bond related with water consumption and with diversity and inclusion related with women in the leadership. I'm very pleased to mention to you as well The IPO of Spinova is one of the investments related with our innovability targets for the future where we have around 20% market ownership and the market cap of the company right now is over 500 million euros. Now I'm going to pass to Fabio Almeida that is going to share with us about our

Thanks, Walter, and good morning, everyone. Let's look at the paper and package business unit results for the second quarter of 2021 on slide number four. Despite the continuous challenge imposed by the second wave of COVID in Brazil and in Latin America during the quarter, Suzano delivered a solid performance on a year-over-year basis, and even when compared to previous Thank you very much. mainly because of weak basis of comparison in 2020, the hardest quarter due to pandemic restriction measures. Domestic sales represented 68% of our total sales in the quarter, totaling 182,000 tons, a 64% increase compared to the same quarter of 2020. When analyzing the quarter over quarter performance, the higher domestic volume was mainly due to better seasonality in the print and writing papers consumption, and a strong paper board sales to address the growing demand of packaging goods. When we look at the international markets, demand has also recovered in the main markets we serve. Nevertheless, our export volumes were negatively impacted by the well-known outbound logistics constraints in the quarter. In the first semester, our total revenues have already surpassed 2019 pre-pandemic levels by 11% due to a combination of higher price and resilient volumes. Our average net price during the quarter was 11% higher than our average rise in the same quarter of 2020 and 6% higher than Q1 2021. During the period, Suzano has successfully implemented the previously announced price increases for all product lines and markets we serve. With a combination of strong volumes, better regional allocation, higher prices, and operational stability, our EBITDA has reached 416 million in the quarter, being 64% and 12% higher Thank you very much. Reaching even more customers with our e-commerce platform, which already accounts for 24% of our total revenue and 65% when taking into account medium and small size customers. It is worth mentioning that we will also keep focused on our innovation pipeline. Sales of new products by Suzano grew six times when compared with the first semester of 2020, aligned with our strategy to enlarge our addressable market and offer more sustainable solutions to our customers and end users. I would like now to invite Leo to present the results for our whole business unit.