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 2023. 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 Schauke and other executive officers. After the company's remarks are completed, there will be a question and answer section when further instructions will be given. Should any participant need assistance during this call, please press star 0 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 Susano 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 the company's CEO, Please, Mr. Walter Schalker, you may proceed.

Welcome, everybody, to the first quarter release meeting that we are discussing today. It's a great pleasure to have all of you. With me today, we have several members of the C-level of the organization. In the end, we'll be prepared to answer your questions. i think it's very clear that this quarter we were able to generate 3.7 or to invest 3.7 billion reais on on investments on capex and even on this scenario we kept our our flat debt at 10.9 billion dollars uh On the commercial side, we had sales on the pulp side at 2.5 million tons in line with the first quarter of last year. In the paper, we came back from our usual trends that we have lower first quarter and we were able to increase a little bit our inventory to prepare for the second half. This trend was changed last year due to large volumes on exports. But this year, we revert to the old trend. And our inventory levels at Pope are at below optimal levels. On operational performance, we had 6.2 billion reais on EBITDA. uh a little bit over 20 percent higher than the the same of last year our operation uh cash generation that we believe there is the right kpi to to trend susanna there is uh it'd be the last capex sustaining we had 4.7 billion reais and our cash cost and we are going to discuss a little bit more in details was flat comparing with the previous quarter We have a very strong balance sheet. We do have right now in cash and in credit lines, $6.1 billion at this point of time. As I mentioned before, our net debt is $10.9 billion and very comfortable with almost seven years of average maturity. And our leverage is 1.9 times net debt over EBITDA. I would like, I'm very pleased to share with you some information regarding ESG. We are able to deliver our sustainability report before the AGM that happens this week. It was the first time that we were able to do it. It is very comprehensive and it's very detailed information. There is with full transparency to the market. And we had the carbon credits approval from the first time. The first project that we had is the several programs that we are going to have in place. This amount is around 1.7 million carbon credit tons. We had on this first quarter the approval of our through on the guide on the antitrust authorities of our acquisition of the Kimberly-Clark tissue operations here in Brazil. And we expect to completing this transaction on the second quarter of this year. Now I'm going to pass to Fabio, who is going to share with you information regarding paper and packaging business.

Thanks, Walter. And good morning, everyone. Let's turn to the next slide on the presentation. The paper and package business unit has delivered a solid EBITDA during the first quarter of 2023, despite more challenged market scenario in the international paper markets. Shipments for print and writing papers and paper board have decreased in the main international markets in the beginning of 2023, given a restocking move that has begun at the end of last year. Demand in the domestic market has been more resilient for both print and writing and packaging grades. According to DBA, demand for print and write papers in Brazil decreased by 3.2% in the two first months of 2023 compared to the same period of last year. However, this decline is largely attributed to the strong comparison base from last year when uncoated papers were sold into the container board segment. If we exclude these volumes, we estimate that domestic demand for print and writing has still grown. Domestic demand for paperboard increased by 3% on the first two months of this year, compared on a year-over-year basis, driven by sustained consumption of essential goods and inventory normalization in the chain. The supply imbalances are fading, and demand is returning to its historical trend in mature markets. In emerging markets, such as Latin America, there's still some demand growth fostered by some segments, textbooks for example. Susano sales volumes in the quarter were 11% lower on a year-over-year basis. The decrease in sales volume is explained by our commercial decision to reduce our offering to the export markets, given the high level of paper stocks in the chain in most markets. This decision allows us to replenish our own paper inventories that have been running low optimal levels for 2022. Domestic sales represented 72% of our total sales in the quarter. In the last two years, we have had higher paper prices as a result of supply restrictions coinciding with demand recovery post-COVID. However, as these factors are now fading, marks are returning to their secular demand behavior. Prices in spot markets have already fallen, but remain stable at health levels in North America and Western Europe. In these markets, suppliers are adjusting their operating rates to match demand. In Brazil, prices have trailed behind those in international markets in dollar terms for most of last year, providing an opportunity for some price increases at the end of 2022, which were implemented during the first quarter. Our price in the first quarter was 32% higher on a year-over-year basis. Our EBITDA has reached $708 million, a 35% increase on a year-over-year basis. This is our highest EBITDA in EBITDA per ton for a given first quarter. Looking ahead, we should expect demand for print and write grades to return to secular trends, while demand for packaging grades should continue to outpace GDP growth due to the sustainability push. Suzano's paper business is more concentrated in the domestic market, which is less volatile to supply-demand imbalance seen in some of the international markets. Although there was still some inflation of raw material energy during Q1, it showed some signs of cooling down, offering good perspectives for the remainder of the year. It's worth mentioning that the structural competitiveness of Suzano paper and packaging business provides a solid ground to navigate on the unforeseen market demand. Now I will turn it over to Leo, who will be presenting our pool business results.