Suzano S.A.

Good morning, everyone. It's a great pleasure to have you all here. We'd like to have one investor day, one more investor day. We are very happy to be here with you. I would like to mention the presence here of a lot of analysts and investors, and as well, the president and CEO of the Federação das Indústrias do Espírito Santo, Cris Amorini. Thank you very much for joining us here. It's a great pleasure to discuss with you what would be the future of Suzano. We have been talking to you several times about our vision of the future and we are going to be in more details today how we are going to operate, how we are going to have capital allocation for the future. Our agenda today is that we are going to discuss about the highlights of 2023 third quarter results. After that, we are going to talk a little bit about business strategy. Every single C-level of the organization, except Pablo, there is in China, is going to join us here to present their specific area and what would be the potential implication for the industry in the future. And then Marcelo Bacci will come here to present to yourselves about our financial management. It's very important to mention on the third quarter results that we reinforce our operational performance, excellent operational performance, and how we navigate on a situation of rough seas. We deliver at this quarter a EBITDA of 3.7 billion reais, meaning that even on a very difficult market scenario, we are performing very well comparing with our peers. And this is bringing our competitiveness to the surface. How we are doing on a much better result than the average of this industry. It's even, I'd like to reinforce another very important point. It's the operational performance of the company. We have a deflation on our cost during this quarter. Our cash cost, and Iris is going to tackle on that, was 861 reais, much lower than the previous quarter. And this to improving on certain specific areas that he's going to detail for us. I'd like to bring one more point point that is quite important. We are on one of the major capex of our history right now. At this quarter, we had 4.4 billion reais, meaning roughly 900 million dollars of investments during this quarter. investments on modernization, or investments on expansion of our business. And even with this scenario, we had just 0.2 billion dollars on increase on our total debt. Our net debt was 11.3 billion reais, now is 11.5 billion reais, meaning that we invest 900 million reais, and even so, with interest and other things, we have been increasing our debt in 0.2 billion reais. Our net financial situation is very well prepared for the future. We have a very strong liquidity position right now and we are very better prepared to our next level of investment. I would like to share with you about our business strategy. And it's very clear that we have a very good capital allocation. I think it's indisputable that we had a very important capital allocation in the last years. We merge with FIBRA. We increase our land banking. When everybody was talking, was discussing, was leasing, we are buying land at a very much lower cost than we have today. We are increasing value and preparing for the future. Carlos is going to discuss with you about our strategy on that area. We enter in the consumer goods that at that time was absolutely no relevant in the company and we are gaining relevance on that. Yesterday we announced a new investment of expansion on this business. Louise is going to discuss about that. We changed completely the business scheme of the paper business. Some years ago, they said, no, this is not a good business because we are going to have lower volumes in the printing and writing. We are performing extremely well on this business. We are entering on new areas, on new dimensions. Fluff is one of the examples. Five or six years ago, when we decided to enter on that, everybody was telling, no, this is not a good business. Why are we going for that? Now we are showing that we are going to have a very good journey for the future. Then... But we are very humble to recognize that our track record that is very good is not enough to justify our future. We need to be looking how we are going to operate better. And we have two things that we are devoting our efforts and our resources right now to prepare the future. One thing is capital allocation. Very disciplined on capital allocation. We are going to discuss about this issue. Marcelo is going to go in more details on that. But this is very, very important. How we are going to allocate capital for the future in the company. And the second thing that is quite important as well is the fact that we are a startup company, 100 years startup company. We are going to turn 100 years now in January, in three months from now. And we want to have this entrepreneurial spirit. We want to attract people. We want to develop people. We want to retain people to be better prepared for the future. And it's very important to have that our organization structure is well prepared to deliver results all the time to the company. We are very proud from what we are doing. But culture is a quite important issue that is not only related with HR. It's related with all the single areas of the organization. And I would like to bring to your attention the discussion of the culture. I'd like to invite Carol Carpenedo that is going to discuss a little bit more in detail with you. Thank you. Thank you, Carol.

Thank you, Walter. Good morning, everyone. It's a pleasure to be here with you. So we believe our value creation comes from our human capital and our strong culture. So the DNA of our culture comes from the founders and has evolved, making us arrive in these 100 years. And we are going to continue to plant the seeds for the next 100 years. You all know our purpose, renewing life, renewing life inspired by trees and also our three main drivers. We are people who inspire and transform. We want to create and share value. And it's only good for us if it's good for the world. And we are constantly reinforcing them and making sure decisions are made, taking them into considerations based on them. But we also know that when companies grow, they tend to become slower and excessively bureaucratic. As Suzano is a company with growth, we tackle such trend and make sure we act investing and making sure our mindset, our entrepreneurial spirit, our agility and our innovation are embedded in our culture. We have been in 2023, we started a culture journey with involving all our team members. So we host dialogues with our operation. We look to identify what were the improvement opportunities. We also train all our over 900 leaders And we train them for today, but mostly important, for tomorrow. We invest time in our people to forge Suzano's future. So, and as Walter said, this is not, it can be an HR only topic. This is the whole leadership responsibility. It's a mission undertaken by all our leaders. And we follow and manage this closely. So we measure, we have a quarterly assessment, and this is impacting the variable compensation of our leaders. who are making sure we are spreading this and living throughout the whole organization. So now I would like to invite my colleague Christian to talk about our new ventures.

Thank you, Carol. Good morning, everyone. Pleasure to be here with you. As you know, Suzano's strategy is anchored in five avenues. I will start with you explaining a little bit more how we're evolving in the second one, how we're expanding the pie, expanding boldly into new markets. In fact, there has been a lot of progress over the last 12 months, more than inaugurating our cellulosic fiber plant in Finland earlier this year. We also inaugurated our pilot plant in MFC here in Limeira. We are growing our lignin business, almost tripled our sales volumes, still small but very promising. We continue to develop not only commercial applications but also commercial agreements with global partners in our bio-oil and green energy field, a very important field in the future for Suzano as well. And we continue to certify new carbon credits and take them to the market. And finally, also important, we set up the Biomas project together with our partners, not only to take care of the native forests, but also to restructure them as well. So a lot of progress in multiple fronts. And at the core of that, the essence of that is a word called innovation. Innovation for sustainability. And this is driven by a strong network of people pushed by Suzano Ventures. Suzano Ventures and our three R&D centers in Brazil, Israel and Canada. We also inaugurated this past year our Innovability Hub in China, which is connected to a very dynamic, innovative ecosystem in the Asian market. And this is allowing us to connect to a very broad set of entrepreneurs, startups, academia, and different players that are driving innovation not only in our industry, but in the much broader world as we try to bring sustainability to the world. And we are very proud also to see the first effect of that, of being elected the number one most innovative company in Brazil this year. We are very proud of that. As Walter said, we are a 100-year startup. And to keep this mentality, this is a clear sign of the market that we're moving in the right direction. More specifically on Suzano Ventures, there was a lot of work this past 12 months. We assessed more than 350 startups all over the world in different geographies, all anchored in our four key verticals, biomaterials, packaging, forest tech, and carbon. We decided to invest in three of them. Two of them already signed off, one in the UK, around eucalyptus biomaterials, the other one in Israel around forest tech, and we're finalizing the third one as we speak probably still this year in the Nordics. So this is how we are pushing innovation and sustainability into the company, but I know you all want to know how we're doing in the wood side as well. So I invite Carlos to take you through that. Carlos.