Suzano S.A.

Ladies and gentlemen, thank you for holding, and welcome to Suzano's conference call to discuss the results for the third quarter of 2021. We would like to inform that all participants will be in a listen-only mode during the presentation that will be addressed by the CEO, Mr. Walter Schalke, and other executive officers. After the company's remarks are completed, There will be a question and answer session and further instructions will be given. Should any participant need assistance during the 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 Zanus 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 the circumstances that may or may not occur in the future. We understand that general economic conditions, industrial conditions, and other operating factors could also affect the future results of Susano and could cause results to differ in maturity from those expressed in such forward-looking statements. Now, I would like to turn the floor For the company's CEO, please, Mr. Schalka, you may proceed.

Good morning and good afternoon to everyone and welcome to the conference of third quarter results of Suzano. It's a great pleasure to be with you. I would like to start just telling you that we have here today several officers of the company and we have I would like to introduce to you our new Chief Sustainability Officer of Suzano, Ms. Cristina Gil, that is joining us at this moment and would participate on the event with us today. Today is a historical day for Suzano. We are announcing at the same time the best-ever record EBITDA, quarter EBITDA, in our history. with $6.3 billion of EBITDA. In addition to that, it's a very important day as well because we are announcing the new project Cerrado that yesterday was approved by our board of directors. On November 5th, we are going to announce the details of the Cerrado project We are just released with you, share with you today some information that will be a project of 2.55 million tons of bulk. There is going to be an investment of 14.7 billion reais in defense and the commissioning of this project will happen on the second half of 2024. All the additional information will be provided to you on a special event that you are invited to join us on November 5th, next week. We are very pleased to announce to you today the results of the third quarter. In addition to the Record de Vida, we had extremely good volumes on pulp and paper, Our inventory levels on the pulp side is below the normal levels. We are operating all of our logistics in a very good way despite the shipping problems that the world is facing. We have very good volumes. We have a very good price realization and the combination of good volumes of price and price realization In addition, and the consequence of that, we had a very good free cash flow on this quarter, and we delivered at a very fast pace. Our net debt came down from $11.4 billion to $10.7 billion on this quarter. and our net debt over EBITDA right now it's 2.7 times in dollar terms. Our liquidity, it's extremely good. We have right now $3.5 billion of cash in hand and additional standby line of $500 million. And in addition to that, we had the ESG. Last week, we announced that we are, and Cristina is going to share with you the information related with the anticipation of our carbon sequestration targets from 2030 to 2025. And this is related with our call to action to the world. We are going to be part of the COP26 next week. And it's very important that all of us, 8 billion people, work together on the direction of decarbonization of our world. This is a must. We cannot procrastinate anymore the situation. And we are going to advocate this position during the COP26. Now I'm going to hand over to Fabio who is going to talk about our paper division. Fabio, the floor is yours.

Thanks, Walter, and good morning, everyone. Let's look at the paper and package business unit results for the third quarter of 2021. During the quarter, market conditions have improved significantly in all major Latin economies with the advance of COVID-19 vaccination. Demand for print and write papers in Brazil, according to IBA, has grown 29% until August, when compared to the same period of last year, recovering to pre-pandemic levels. Demand for paper board has grown 21% in the same period, showing that the above historical growth trend for the sector is persistent. On the supply side, paper markets have been forced to adapt to the constraints in global supply chains, which has reduced paper products flows between regions and strength into regional trade. Demand for uncode wood-free papers in the mature markets has grown on a year-over-year basis when compared to 2020, yet still below 2019 levels. Now, focus on slide four. The paper and package business unit has delivered strong operational performance into the quarter. Our sales were 6% higher when compared to Q3 2019, demonstrating solid growth even when compared to pre-pandemic levels. Domestic sales represented 69% of our total sales in the quarter, totaling 209,000 tons, an 80% increase compared to the semi-quarter of 2020, reinforcing the improvement on marked fundamentals. On a quarter-over-quarter basis, our domestic sales improved 15% in volume, due to a better seasonality and the continuously strong demand for packaging papers. I would like also to highlight that our export volumes were 13% higher on a quarter-over-quarter basis, even with severe and persistent headwinds in international logistics. Our average net price during the quarter was 22% higher than our price in Q3 2020, and 5% higher quarter-over-quarter. During the period, Suzano has successfully completed the implementation round of previously announced price increases for all product lines and all markets we served. At the same time, we have also announced the following price increases. 14.6% for paperboard and 21% for cup stocks for the Brazilian market as of November 21st. $50 per ton for all Latin exports and 6% to 8% for all North American exports as of October 21st. As a result of strong volumes and prices, revenue management and operation stability, our EBITDA has reached a new record of 545 million in the quarter. A 31% increase quarter over quarter and a 53% increase year over year. Our EBITDA margin reached R$1,789 per ton, also marking a new time pipe. Looking ahead on the short term, we see a better seasonality during the Q4 and our challenge resides in successfully managing the exogenous pressure of inflation and continue to find alternatives to the international logistics bottlenecks. On the long term, we will keep working on our new go-to-market strategy with investments on technology and digitalization, as well as boosting our robust innovation pipeline to keep benefiting from market trends that were accelerated by the pandemic, as we can already be seen by demand recovery profile. Now, I'll turn over to Leo, who will be presenting our whole business results. The floor is yours, Leo.