Suzano S.A.

Ladies and gentlemen, welcome to Suzano's third third of 2022 conference. We would like to inform you that all participants will be in listening mode only. Presentation made by Mr. Walter Schalka, CEO and other executives. There will be a question and answer session. Instructions will be given then. Se necessitarem de assistência, por favor pressionem asterisco zero. Antes de continuarmos, é importante ressaltar que quaisquer afirmações têm por base as suposições da gestão da empresa, de acordo com as informações disponíveis. Envolvem riscos e incertezas porque estão relacionadas a eventos futuros que podem ou não vir a acontecer. Condições econômicas gerais do setor e outros fatores operacionais podem também afetar os resultados da Suzano, que podem vir a ser diferentes daqueles que forem manifestados hoje. Passo a palavra para o CEO da Suzano, o Sr. Walter Schauke. Bom dia a todos. É um prazer... I would like to welcome you to our third quarter's results conference. It is a pleasure to be with you and we will answer your questions at the end of the presentation with all the staff present. This quarter was very positive, with records in several areas, and our team will continue I would like to present some of these records. I want to highlight some specific points, which is the EBITDA record, R$ 8.6 billion in a single quarter, EBITDA-CAPEX box generation, R$ 7.2 billion. Estamos continuando a trilhar avenidas estratégicas. Eu gostaria de apresentar aos senhores que adquirimos 40 milhões de ações no programa de recompra e anunciaremos o terceiro programa de recompra com mais 20 milhões de ações adicionais. Continuamos a dar continuidade ao projeto de cerrado In the schedule and within the budget, which will add a lot of value to the shareholders, and this week we announced the acquisition of the tissue division of KC, Cambria Clark in Brazil. We will give more details. This is a good performance of capital allocation, whenever we increase the cash generation, we are serving several audiences, we increase the cash return, Aumentamos o CAPEX para estarmos mais bem preparados para o futuro. Eu gostaria de destacar também e agradecer os nossos 37 mil membros diretos e indiretos que entregaram um resultado bastante sólido nesse trimestre mais uma vez. Mostra que temos no nosso DNA essa postura competitiva e uma vantagem que vamos continuar a usar nos próximos trimestres. Passo a palavra para a paper division.

Thanks, Walter. Good morning, everyone. Let's turn to page number four on the presentation. Last quarter, we had informed you that the paper and packaging business unit have had its best quarter ever.

Well, we have done it again.

A well-executed commercial strategy aligned with a healthy demand for paper products delivers strong top and bottom line performance, with a new best quarter EBITDA for the business unit. As discussed in previous quarter, demand for print and writing papers and carton board has continued to be solid in the domestic international market served by Suzano. Latin America, our main export market, has been the growth engine in demand during the Q3, with a sound growth for both print and write and paper board papers. Demand in North America and Europe continue to be resilient with imbalance on the supply side due to constraints in the supply chain. International logistics have shown signs of improvement at the end of the quarter with better availability of container shipments and lower prices. Raw material and energy inflation continue to pressure the cash cost of paper producers, still benefiting integrated producers moving forward. Figures for the whole Q3 from IBA related to print and write domestic demand are yet not published. Considering the first two months of the third quarter when compared to the same period of 2021, the available data shows a 8.5% demand increase, mainly due to increase on the demand for paper linked with the Brazilian National Government Book Program and the Brazilian General Elections. Given the strong demand from the mainstream print and write applications, volumes of uncoated paper sold into the container board market were not significant in the quarter. IBAS public data on paper board demand shows a strong 11.7% increase in the first two months of the third quarter, even when taking into account the same strong comparison period in 2021. Regarding Susano's sales volumes in the Q3, were 2.5% higher when compared to the previous quarter and 2% below when compared to Q3 last year. Albeit higher sales volumes in the domestic market in a quarter-over-quarter and year-over-year basis, our export volumes reduce due to supply chain restrictions and lower inventory levels. Domestic sales reached 71% of our total sales in the quarter, totaling 211,000 tons, a 1% increase on a year-over-year basis. Inflation has continued to hit paper costs during the quarter. Still, we were able to manage our prices effectively, being successful in offsetting inflation impacts during the period. Our margins have expanded 6 percentage points on a quarter-over-quarter basis to an all-time high of 43%. Our average net price during the quarter was 13% higher than our average price in Q2 and 43% higher than the same quarter last year. As a result of revenue management and operation stability, our EBITDA has reached R$ 859 million, a 58% increase on a year-over-year basis. Our Q3 EBITDA and EBITDA Porton were also new all-time highs for the paper packaging business unit. As informed during our Q2 conference call, our paper inventories have been reduced and we are running below our optimum levels and should continue to do so for the next months. We don't expect any impacts while serving our strategic customers. Looking ahead, we continue to see improvements in international logistics, which would ease some of the supply imbalance we have seen last year. On the demand side, we expect a strong paper demand in Brazil during Q4, and we continue to see supportive demand for our products in our main export markets. Now, I will turn over to Leo, who will present our POP business results.

Thanks, Fabio, and good morning, everyone. So please let's move to page 5 of our presentation so that we can address the results of our pool business units for the third quarter of 2022, marked by a new record EBITDA for our third quarter. As you can note on the upper left graph, our sales volume was very strong, reaching 2.8 million tons in the third Q22, with performance exceeding previous quarters, despite the historically lower seasonality period of the year. As a consequence of these positive sales figures, our inventories are still below optimum operational levels, and we kept withdrawing offering volumes to spot markets, therefore focusing on ensuring the effective supply fulfillment to our customers. This third quarter was marked by tight supply and demand balance, mainly based on continued supply disruptions, especially in Europe, some of which weather-related and also due to a lack of birch for hardwood pulp production, as well as the effect of an absence of new volumes in the stream from new projects, which as a result kept hardwood inventories low globally and throughout the whole chain. Demand and order entry levels for hardwood continued at a good pace during the quarter, which in addition to the low hardwood inventory scenario, still places challenges in the management of supply chain for some paper and paperboard producers in order to keep their production rates unaffected. The continued S&D tightness led to new rounds of price increases in all markets in the beginning of the quarter, which were fully implemented and with absolutely no concessions, and price stability was later foreseen during August and September with no reductions to the planned order intake levels. Coming back to the slide, our average price for export markets has increased to $821 per ton during this third quarter, This price still does not capture our full price increases during the quarter, due mainly to existing backlogs of shipping and invoicing to our order books, as we have yet not recovered the timely invoicing to Asia. Our EBITDA of 7.7 billion reais, a new record for a third quarter, was mainly a result of higher prices and more favorable FX and higher invoice volumes, which led us to a 64% EBITDA margin. Now, looking forward, I would like to highlight the following points. We continue seeing an unchanged scenario of low hardwood inventories throughout the chain. As a consequence of persisting weather-related events and war-related sanctions affecting hardwood production, especially in Europe, as well as no sizable volume from new projects coming into market up to the year-end, with no additional tonnage being visibly marketed as we speak. On top of these factors, the planned and announced recovery boiler retrofit of Suzano's Ataclus mill, impacting our pole production in October and November, As well as news on limited hardwood deliveries by some leading Asian producers should constrain pulp availability in the market and so keeping the supply side of the S&D balance tight in this next period. Diving deeper into unplanned downtimes in bleached chemical pulp, our new estimates bring us to 2.1 million tons year-to-date, an all-time record. We recognize a lower visibility for future mid-term demands due to macroeconomic environment, most of which related to the Russia-Ukraine war. However, currently, the demand for pulp continues at strong levels in Europe and in North America, with pulp purchases and forecasts trending at normalized set points of our key customers' contractual volumes. We have noticed that some market segments like decor and corrugated packaging have been reporting lower sales forecasts, but the furnish of hardwood pulp for them are quite limited, being quickly compensated in other markets, mainly tissue. In China, paper production in segments which are more related to BHVP, such as tissue premium winding and ivory board, are expected to continue to post solid figures as producers are planning for a higher seasonality period and for the W11 shopping gala, as well as the healthy recovery of paper exports. To illustrate that, S.A.I. consultancy reports that for year-to-date September 22 figures, production of tissue printing and writing and ivory board in China has increased 7% when compared to the same period of 2021. Due to low inventories of hardwood at Chinese ports and inland, order intake in the region is expected to continue at current levels. Regarding Suzano's order intake, volumes were confirmed at unchanged prices in October, and during this week, we have announced to our customers unchanged prices for November globally, with the strong expectation that sales orders will continue to come at current levels. Domaini, again, to still limited hardwood inventories and availability in major markets. With that said, I would now like to invite Aires to address with you the cash cost performance of the quarter.

Good morning, everyone. We are in slide number six. The cash production cost, excluding all time in the third quarter, stood at R$883 per tonne. A slight increase of 3% from second quarter, coming in line with our operational plan and guidance shared with you on the last earnings call. The book of the hit connects as expected on wood costs in turn due to the increase on diesel price, third-party wood, and the forced-to-mill average distance. On inputs costs, mainly impacted by natural gas and costly solar prices. The 7% average FX depreciation also took a toll. These effects were partially offset by a higher dilution of fixed costs, thanks to greater operating efficiency of mills and better results from utilities with higher export volumes from Tres Lagos sites. When analyzing the year-over-year performance, cash production cost increased 24%, and the score is quite similar of what we have presented on the last earnings calls. The driver mostly came from by commodities price, which as you can see explains 83% of total cash cost pressure. Once again, brain-based products. mainly natural gas and diesel used in the operations, as well as caustic soda. The most important chemical on the cash cost performance were the highlights. On the positive side, the higher benefit of energy sales were due to improved operational efficiency and the higher export volumes from Imperatriz Mill. Looking forward to the fourth quarter, We currently expect a flattish performance over 30-part figure. The downtimes impact on the COGS, including not only the regular maintenance downtimes of fault lines B and C of our cruise sites, but also the announcement temporary shutdown on line A for a recovery boiler retrofit on the same site should be below 30 highs per tonne. Now I pass the floor to Marcelo Botti to continue the presentation.

Thank you, Aires. Good morning, everyone. Let's move to page seven and talk about our balance sheet. In the last 12 months, we managed to keep our net debt at the flattest level, at $10.7 billion, in a period where we made $2.9 billion of CAPEX, including maintenance and also the expansion CAPEX. and also in a period where we returned $700 million of cash to our shareholders, including dividends and share buybacks. That was possible due to the $5 billion EBITDA that we generated on the period. That led our leverage ratio to 2.1% with a very low concentration of maturities in the next three years, the period where the disbursements of the CAPEX of the Cerrado project will be concentrated. We continue to have more than 90% of our net debt at fixed rates, which is a big advantage in this period of increasing interest rates. Moving to next page, we are announcing a slight change in our hedging policies, increasing to a gap between 90 and 110% the percentage of net debt that we can carry in dollar terms. And that will give us more flexibility to take advantage of the increasing interest rates in Brazil. We have also increased the horizon of our cash flow hedges to up to 24 months, also to take advantage of the increasing carry in our currency. Considering the old policy, we today have 66% hedges on the cash flow, 55% on the Cerrado project, and we will be working from today on the new limits, therefore changing this percentage for the future. Moving to the following page, we talk about CAPEX. We made R$4 billion of CAPEX in the quarter, very much aligned with our expectations, adding year-to-date R$11.2 billion, and we reaffirm the guidance for the year at R$16.1 billion. On the following page, I will start a new section on capital allocation. where we start by saying that in addition to the dividends already paid and to the two share buyback programs that we already completed, we are announcing a new one for another 20 million shares that can be bought in the coming 18 months. We have already bought close to 6% of our free float and the new program will allow us to buy another up to 2.9% of the free float. Moving to the following page, a word on the Cerrado project. We continue to have the project on time and on budget, reaching 31% physical progress and 24% financial progress, very much in line with our expectations. With that, I will turn to Luis to continue the capital allocation chapter.

Thank you, Bachi. Good morning, everyone. Let's move to page 12. We started the tissue business in the end of 2017, with the production of jumbo rolls in Mucuri and Imperatriz Mills. Throughout these five years, we have made the acquisition of a company focused on north and northeast regions, and reached our maximum installed capacity in terms of production and sales, boosted by our latest conversion plant installed in Espírito Santo Estate. During the Suzano Day in March, we discussed the trends in the Brazilian tissue market and highlighted the product premiumization and significant room for growth in the tissue per capita consumption in Brazil. Just to mention, domestic consumption is 7 kilos per person per year, compared to 14 in Chile and 29 in the U.S. At that time, we also presented the growth optionalities for our business. In the organic side, we announced our intention to build a new tissue plant in Aracruz, still pending approval by our board of directors, and we are very happy to announce the acquisition of Kimberly Clark's Tissue Business in Brazil. Let's move to the next page, please. This transaction involves both at-home and away-from-home businesses and includes one plant in Mojimirim with 130,000 tons of production capacity, the intellectual property for the Navi brand and licensing agreements for KC Global Brand. It's important to mention that this deal will bring complementarity of both product categories and regions. Susano is focused on the north and northeast regions, while OKC is stronger in the southeast region. The two operations combined will have a market share of 22%. We are currently focused on the regulatory approval over the next month. And last but not least, it's worth mentioning that Susano's financial robustness and discipline Allow this strategic move with no material impact on its financial leverage. We will now open for the Q&A section.

Thank you. The floor is now open for questions. If you have a question, please press star 1. Our first question comes from Caio Ribeiro with Bank of America.

Yes, good morning, everyone. Thank you for the opportunity. So my first question here is on the scenario for Europe versus China, right, for 2023. We keep seeing, you know, recessionary fears and pulp demand destruction concerns, you know, building in Europe, while pulp demand appears depressed in China, you know, given the continued impact of the zero COVID policy. So I just wanted to get a sense from you. on how you see this playing out in 2023, right? Do you see any potential catalysts that could trigger a recovery in China post-demand to pre-pandemic levels? And is that enough, right, to compensate for potential demand weakness in Europe, in your view? And then secondly, on the tissue business, right, you recently announced the acquisition of Kimberly-Clark Assets in Brazil. Do you see room to continue to consolidate this market further via acquisitions? or would you now shift gears and focus on growth more via greenfields, brownfields? Thank you.

Caio, good morning. Thank you for your question. This is Leo here to answer the first part of it related to demand in 2023. Actually, I'm going to be a bit more ample in my answer and talk about both sides of the equation, supply and demand. We recognize obviously new pole projects starting up in 2023, but there is a lot of uncertainty on how supply and demand fundamentals will play out as the year unfolds. On the supply side, there are possible delays of projects as well as the time to market of this new pole production. and this should reach markets in a more timely and gradual manner. When we add on top of that the risks of additional and increasing unexpected down times as we have seen this year, this is even harder to evaluate and to factor in how this will play out or the timing of how this volume will reach and the impact to markets. Despite the expected slowdown in Europe, and we recognize, as I said in my speech, a lower visibility in that sense, consultancies such as Hopkins Riot, even factoring in that number, forecast global demand for hardwood pulp to grow close to 1 million tons in 2023. And that's hardwood alone, which is in line with historical growth, as tissue is very resilient, even in more adverse scenarios. So, that's my answer to the first. Luis, please.

Thank you, Leo. And thanks, Caio, for your question. We are currently focused on closing the operation and with all the pending analysis that will take place over the next month. And we're going to be very busy integrating this company and also implementing the organic That's going to be our major focus over the next months.

Perfect. Thank you, gentlemen.

Mr. Rafael Barcelos with Santander would like to make a question.

Good morning. Good morning and thanks for taking my question. My first question is related to pool prices. So we have seen demand headwinds emerging over the past few months in both Europe and China. However, pool prices persist at record high levels. So in your view, what continues to support pool prices at these levels and how do you see pool affordability at the moment? And my second question is related to your long-term strategy, okay? So we have seen Susano investing again in its paper division through the tissue segment, right? So how relevant your paper division could be going forward and which other investment opportunities do you see for this division going forward? Also, as for your pulp division, is part of your strategy to switch part of your pulp production in the future to more niche products such as fluff or even dissolving pulp? Thank you.

Good morning, this is Leo here again to answer your question on the full price scenario. Our belief is that an unprecedented curtailment on the supply side of the equation favoring the S&D fundamentals is enabling us to be very bullish for this next month ahead of us. And actually, as I have said, and already talking to our customers and confirming unchanged prices for November as well. Results up to now any displacement in our order entry levels and in our sales levels. Stokes are low throughout the chain. In Europe, we just received yesterday night the statistics. There's a new reduction to stocks at European ports of roughly 6% to 7% when compared to August. In China, there was also new reductions in September compared to August, approximately the same token, 7%. And as I have mentioned before, it is our view, talking to market analysts Sources that we have that the stock in China, despite being smaller, the percentage of hardwood is much less than it was historically, meaning that hardwood is tighter and tighter in all major markets when compared to other grades. So when we factor in the tightness of this supply side and the consistent demand, as I have been reporting in Europe, in U.S., in LATAM, and also in China, where customers are running Actually above what they were running a year ago, we see a very supportive short-term scenario.

Rafael, thank you very much for your question. It's Walter talking here. I'd like just to mention to you and to our colleagues that our strategy is based on five different avenues for the future. One of them is competitiveness. The second one is the relevance of a full market in the world. The third one is verticalization. The fourth one is innovation. And the fifth one is sustainability. We have been working in all of the five different dimensions that I mentioned. And paper and packaging have been performing extremely well. And we could consider organic growth for the future, as well as a conversion From our paper grade pulp to other applications such as fluff and dissolving, as you mentioned. Then we do have several optionalities for the future, and this is a beautiful of our strategy that we are building along these many years, and we could consider several possibilities in order to new investments on the near future.

Okay, great, thanks.

The next question comes from Jonathan Brandt with HSBC.

Good morning, gentlemen. Thanks for taking my questions. I first wanted to ask you about production and volume. Next year, you have a significant amount of downtime in the first half, concentrated mostly, I think, on the second quarter. And inventory at the moment is already very low, as you've mentioned. So I'm just wondering, you know, are you going to start building inventory in the fourth quarter and first quarter? Or should we think about maybe 2023 volumes being less than 2022 volumes, given that you have more maintenance downtimes next year than you've had over the past couple of years? And then my second question, I guess, Walter, I mean, this is something you've talked about Thank you so much for joining us today. Would that be a benefit, do you think, to your share price? Would you look to move more of your pulp volumes to an annual price agreement like they had 10, 20 years ago? Or do you just have to accept the volatility and prices going forward? Thank you.

Hey, Jonathan, this is Leo here. Thank you for your question related on how we're planning for the actually very intense downtime or planned downtime schedule that we have for the beginning of 22. So for this Ending months of 2022, we do not expect to increase inventories as we have a very full order books to be delivered to our customer base. As I mentioned, we're still running late on Asia, so we have to really push hardly to make sure that we deliver on time without affecting the supply chain of our customers who are running with low And regarding 2023 and how we're going to plan for this maintenance downtime season, this is part of our commercial strategy, so this is something that we do not share, but we're going to prepare accordingly so that our customers and the service levels that we provide to them are kept unaffected.

Thank you, Jonathan. It's Walter here. I do recognize our ambition to reduce the volatility. The volatility is not performing well for our customers and not for us. All the change is affected by the volatility, and our ambition is to reduce volatility over time. We have been working with different price schemes With an increased basis with our customers on the last years, and it's going to repeat the situation for the next year, where we are going to have, instead of fixed discount and floating prices, we are going to have different schemes such as cap and floor, such as fixed price, that would be better for everyone. And this is affecting our price realization when the prices is going up. But we will protect our price when the price will go down. And this is going to reduce our volatility. We recognize that this number is not yet at the level that we would like, but it's improving year over year, and we will continue on this strategy in the coming years.

Great. Thank you very much.

The next question comes from Daniel Sasson with Itaú BB.

Hi, everyone. Good morning. Thanks for taking my questions and congratulations on the record high results. My first question is on the Kimberly Clark acquisition. If you could clarify if the $175 million is related only to the equity value of the transaction, if there is debt also involved that could increase that amount, and if there are any And my second question is on the cash cost, pulp cash cost. You mentioned last quarter That you expected a low single-digit increase versus the first half. Is this still the expectation or has anything changed at all? And maybe from the 140 reais per ton of increase in your cash cost, how much of that you think could go back following a normalization in the cost of chemicals and diesel and what do you think could be more, you know, structural and could proceed looking ahead? Thank you, guys.

Thank you, Daniel. This is Marcel speaking. We are not going to give much detail on the price of the KC deal. Nor on the numbers because this what we're buying it's important to mention what we're buying is a part of the operation they have in Brazil where the numbers are not public this is part there's a there's going to be a drop down of assets the segregating the part that we're not buying which is the personal care business from the family care business which is what we are bringing to to our numbers what we can say is that, of course, this is a moment of lower profitability for the tissue business given the high level of pulp prices, but we are not in a position to share numbers in addition to what we already have shared, which is the capacity of 130,000 tons. The main challenges, it's difficult to say. Of course, we believe that there's going to be significant synergies to be extracted. We will, as Luis said, start to plan for the synergies, but we expect that the incorporation of the operations should be smooth since we already at this point have been in this business for five years and we have experience enough to incorporate a new part of the business.

Daniel, thank you for your question. I'm speaking for the fourth quarter. We are providing a first scenario because every change in the commodity price has a lagging implementation in our company around two or three months. And for next year, the scenario that you have worked at remains the branch price. and Kosti Kisoda in the same level that we have had in the third and fourth quarters. If we have any better scenario, especially in the branch that are totally connected with our natural gas price, probably we can have some reduction. At the same time, it's difficult to predict anything.

Thank you. Thanks a lot.

The next question comes from Leonardo Correa with BTG Petro.

Good morning, everyone. So a couple of questions on my side. The first one on price realizations in the pulp business. I mean, it's clear from your speech that October was pretty much in line with With prices at very high levels still in November is following a similar path, right? So my question is whether there is a carryover effect still that you guys are expecting to extract heading into the fourth quarter, right? I mean, looking at prices in the third quarter, you did something around $820 on the export side. So I can assume that there still is a gap to close. I just wanted to hear your thoughts They could be high level, but just want to see if that makes sense, that there still is some carryover effects on pricing. The second question, moving back to the discussion on the supply-demand scenario in China, right? I mean, we saw overnight that the pulp reselling price in China suffered a bit of softness, right? I mean, we're seeing prices at around $800, so they're There is a gap of about $50, $60, right, to, let's say, to benchmark. I understand all the issues and the low quality of reselling and the fact that it's very illiquid. I just wanted to confirm if the message still from China is that you're not seeing any cracks and that supply demand remains quite tight. Is that it? Thank you.

Leo, thank you for both questions. This is Leo here answering both of them. So, first, related to our view for the next quarter's pricing, obviously, we cannot share too much information regarding our pricing for the quarter, taking into account that this is key to our commercial strategy. However, I can share that our general view is that price realization dynamics on the whole P&L should continue to be benefited, as you asked, from the price increases and levels of the past months. October business and order intake was concluded at unchanged prices at really normal order entry levels. And our view is that this scenario should not change for upcoming months due to all factors which I have mentioned previously. Also, related to our backlogs to Asia mainly, as I had mentioned on the last quarter, we were running roughly at 60 days or two months late. We were not able to recoup or recover this scenario during the third quarter. But there are plans to reduce this as we get closer to year end. So we're still carrying this backlog of roughly two months to Asia. Coming into resale prices, We have had a lot of discussions with our local sources to deeply understand the recent moves, including what was reported earlier today in Brazilian time. And our view is that this recent volatility on hardwood resale is mainly to the effect of a concentration of arrivals of imported and domestic pulp to domestic Chinese traders. And these volumes are being quickly depleted in the market as hardwood inventories are low. and they should be returning to normal level. So my expectation, our expectations is that as we come into the next weeks, resale prices should recover in RMB terms, also to recover for the FX depreciation.

Perfect. Thank you a lot.

The next question comes from Isabella Vasconcelos with Bradesco BVI.

Thank you. Good morning to all. I think most of the questions have been answered, but I have one on the paper side, if you could provide more color on what you're seeing in terms of domestic and export demand across different grades, and I've given very solid Thank you for your question. Regarding paper demand,

We continue to see solid demand in the Brazilian and also in Latin American markets, which are the main markets for Suzano. As you know, 70% of our business in Q3 were sold in Brazil. And as I mentioned in my speech, we have also the high season for uncoated and also cut-sized business in the fourth quarter with the Brazilian books program and also for the return to school season, which is preparing the stock during the end of the year now. So we continue to see resilient demand here, strong in Brazil and also in Latin. In the other export markets, very solid demand in North America, with imbalance in the supply side, and also in Europe for uncoated paper. So the demand side, no change, and we expect a good fourth quarter. In terms of pricing, we have realized all the price increases so far that we have announced to the market. We have implemented all of them, and we continue to analyze the markets for price opportunities moving forward. So, that's it.

Thank you. Very clear.

As there are no more questions, I would like to turn the floor over to the company's CEO for final considerations. Please, Mr. Walter Schalke, you may proceed.

Thank you very much for joining us for this session. I think we are very proud and pleased with the results that they are leaving to the market right now. We have to recognize that at this point of time, we are seeing some hidden value on our shares. I'm going to mention three issues. One of them is Parkia. Parkia was a very important acquisition for our future with lower capex on our forest business. It's the same with Caravelas. We are not, at this point of time, no recognition of the Cerrado project. End of this year, we are going to be invested roughly 7 billion reais on this project, and the value is zero on the market analysis. And I would like to bring another very important issue. There is the cost of debt. Our cost of debt is 4.7% with average maturity of seven years. For exactly the same maturity right now, the cost of interest would be 7.3%, 7.4%, meaning that we have a huge benefit on our fixed interest rates policy. And this is not, at this point of time, bring to the surface by the market. I would like to see, and this is just three examples of that. We have several of them. that on time we are going to see more value on the Suzano shares. We are very pleased from what we are doing and we are looking forward to the next steps of the company in the coming quarters. Thank you very much for the session. I hope you have a very nice day.

Thank you, Suzano. Third quarter results conference call is finished. Have a nice day.