Suzano S.A.

Ladies and gentlemen, thank you for holding and welcome to Suzano's conference call to discuss the results for the fourth quarter of 2022. We would like to inform that all participants will be in a leasing 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 when further restrictions 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 Suzano's 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 overlooking statements. Now I would like to turn the floor Over to the company's CEO. Please, Mr. Walter Schauke, you may proceed.

Good morning. Welcome, everyone, to the year result meeting that we are presenting here. We have with us here a large part of our C-level that would be able to answer your further questions in the end of the presentation here. I'm very pleased today to announce and to present to you the best ever results of our company. We are very pleased with several developments that we had with you that I'm going to share right now. In the operational side, we have flat volumes on the paper and a poll. Despite the fact that we have additional annual shutdowns and a retrofit in our Araclus plan. This keeps us with inventory levels below our optimal operational levels. Leo is going to share more information with you regarding this point. The combination of good volumes in terms of sales. and Better Prices lead us to a situation that we had the best EBITDA ever in the company with 28.2 billion reais. When operational cash generation of 22.6 billion reais. Despite the fact that we have short-term impact on our cash cost, Due to inflation on commodities and other things and other services that Aires is going to share with you additional information. Our financial situation, it's a very strong balance sheet. We have a potential liquidity of 6 billion reais right now. Our net debt is at 10.9 billion reais. With several initiatives that we had this year, we had a minor increase from 10.4 to 10.9 billion reais. And Batch is going to share with you additional information on that. Our leverage is at two times Nadado Revida right now. And we have been performance our capex once again, one additional year in line with our guidance. We are very pleased with that. We are a highly intensive capital company and we need to perform on our cap. I'm very pleased as well to announce our best ever results on safety performance as well and a major improvement on our cultural development. mainly showing that we are preparing the company for our future. We are not only think on the short-term results, but we are preparing our future. In the end of the presentation, I'm going to share with you how we have been performing on all the strategic avenues that we announced to you. Now I'm going to pass the floor to Fabio who is going to share the information regarding our paper and packaging division.

Thanks, Walter, and good morning, everyone. Let's turn to the next page of the presentation. We're glad to announce that with solid results on the fourth quarter, we wrap 2022 as the best year ever for the paper and packaging business unit. Demand for print and writing papers and carton board has been strong in the domestic market, led by seasonal customer demand in paper packaging and editorial segments. In the international markets, demand, although solid in the quarter, has shown some signs of cooling down, with much improved supply chain leading to end of inventory replenishing in all major markets we serve. On the domestic market, according to IBA, print and write demand slipped 2.2% in the quarter when compared to fourth quarter 2021. This decrease is due to strong comparison period last year and the reduction of print and writing papers sold into the container board segment. which has been minimum at the end of 2022. When you look at full figures for the year, print and write demand remain at the same levels of 2021, a positive indicator, giving strong reading in 2021. Robust performance of the publishing sector, office and school paper segments sustained the demand, supported by the rebuild of previous depleted inventories, a trend that was particularly strong in the quarter. For paper board, IBAS public data on demand shows a strong 11% increase versus fourth quarter of 2021, with a continuous consumption of essential goods and strong seasonality at this time of the year with holiday shopping. Consolidating 2022, there is a 3% increase in demand, sustaining the post-pandemic growth trend. On the international markets, as I already mentioned, supply imbalances are fading, and demand has returned to its historical trend, albeit still sustained at favorable price trends. Susano's sales volumes in Q4 were 2% higher than the previous quarter, and 10% below when compared to the fourth quarter last year. The decrease in sales volume when compared to Q4 2021 is explained by our decision to operate with lower inventory levels in order to serve market demand, which diluted sales volumes throughout the year. When you look for annual volume, 2022 sales were at the same level as 2021, and domestic sales represent 70% of our total sales. Our average net price during the quarter was 2% higher than our average price in Q3 and 40% higher than the same quarter last year. By looking year-over-year, our average net price increased 36%. As a result of revenue management and operation stability, our EBITDA has reached 810 million reais, a 47% increase on a year-over-year basis. On a quarter-over-quarter comparison, the EBITDA performance was mainly impacted by G&A costs, as explained in our earnings release. If we look at the annual EBITDA of 2022, there is a sound 50% increase when compared to 2021. During the year of 2021, we have grown the sales of our innovation pipeline by almost 2x, delivered on our target set in our last 200-day event. We have also surpassed the milestone of 43,000 customers directly served by Susano, strengthening our Susano optimized business model by achieving record numbers in sales throughout our e-commerce platform. Looking ahead, in terms of demand, we expect to see marks returning to their secular trends for print and write papers and continue to grow above historical trends for paper boards. We expect more challenged market conditions in international markets with a shrinking demand for print and write papers and more availability of supply. Domestic market seems more balanced and should be more resilient. It's worth mentioning that the structural competitiveness of Suzano paper package business provides a solid ground to navigate on the foreseen market dynamic. Cost inflation during the last two years has altered the marginal cost of paper producers. And moving forward, we should expect prices to remain higher than historical levels in most markets. Now, I'll turn over to Leo, who will be presenting our pool business results.