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 2024. 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. This call will be presented in English with simultaneous translation to Portuguese. To change the audio, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, you can select Mute original audio. 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 Suzano and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Walter Schauke. Please, you may begin your presentation.

Good morning, everyone. It's a great pleasure to have you to be part of the first quarter results 2024 of SUSANO. I'd like just to mention to you that we have almost everyone from the C-level with us today and will be available for a Q&A session after our presentation. It's a great pleasure to announce the results of the first quarter. Once again, we had a very good operational performance with volumes on both sides with 2.4 million tons. We have been improving volumes on the paper side as well and on the consumer goods. We had 4.6 billion reais on EBITDA on this quarter. And I would like just to mention to you and reinforce the point that we are continuing to look forward to our competitiveness. It's very important to mention our operational cash cost. That was 812 reais per ton, a very good performance and very close to the performance of the fourth quarter last year. Just to reinforce our positioning on our robust balance sheet with $6.3 billion in cash plus revolving position. With a net debt, there is $11.9 billion. And we are reaching the peak of our leverage with three and a half times net debt over EBITDA. We are going to present Cerrado. Iris is going to present in a few minutes to you. And we have been approaching the end of Cerrado with less disbursement on the future. Now I'm going to pass to Fabio that is going to talk a little bit about packaging and paper market.

Thank you, Walter. Good morning, everyone. Let's turn to the next page on the presentation. In the first quarter of 2024, we have faced different market conditions in our domestic and international markets. Outside Brazil, we have seen demand starting to rebound if inventory replenishment build up after the strong destocking process through most of 2023. While on the domestic market, demand started the year slower than expected. Demand for print and write papers in Brazil shrunk 20% in the two first months of 2024 when compared to the same period of the previous years. With the impact of the postponement of federal and state documents book programs and customers' inventory adjustments led by slower economic activity at the beginning of the year, apart from the already expected structural reduction in quoted paper demand for the promotional segment. Regarding paper board, demand in Brazil has been impacted by a slowdown in consumer spending, which, coupled with previous inventory adjustments, resulted in a 6% demand reduction in the two first months of 2024, compared to the same period of 2023, according to EBAS's available data. Susano's total volumes in Q1 were 3% higher than Q1 2023, driven by higher export volumes. Compared to the last quarter, our total sales reduced 20% due to the usual sales seasonality between such quarters. The average net price during the quarter was flattish quarter over quarter. We have delivered higher prices quarter over quarter in the domestic market due to price increases in our uncoated and cut-sized product lines. In international markets, our prices were slightly lower quarter over quarter due to product and regional mix. Looking at EBITDA, the 19% decrease quarter over quarter was driven by lower sales volume. When compared on a year-over-year basis, the 35% decrease in EBITDA was mostly led by lower prices in the external markets. Our EBITDA per ton was slightly better on a quarter-over-quarter basis. Looking ahead to the coming quarters, we expect healthier demand levels as inventory buildup continues in mature markets. In the domestic markets, we expect the lesson cycle to support demand in the coated segment, a recovery in the uncoated market segment, as well as improving paperboard demand for packaging. The improvement in demand combined with current market expectations for coal, energy, and wood prices is expected to sustain current price levels on the domestic market. While on international markets, apart from the rapidly evolving scenario, we generally expect price levels to increase, as several major international players have already announced price increases for the coming months. Despite the mounting cost pressures, the impact is not uniformly distributed across all players and regions. Looking ahead, we expect a flattish cash cost performance in our paper and packaging business throughout 2024, backed by our strong structural competitiveness. Now, I will turn over to Leo, who will be presenting our POPE business results.