Suzano S.A.

Ladies and gentlemen, thank you for holding and welcome to Suzano's conference call to discuss the results for the third quarter of 2024. We'd like to inform you that all participants will be in list and only mode during the presentation. That will be addressed by the CEO, Mr. Beto Abreu, 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 located on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, you can select mute your original audio. Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Susano's Executive Board and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depends 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 Susanus and could cause results to differ maturely from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Beto Abreu. Please, you may begin your conference, sir.

Thank you. Hello, everyone. Thank you for attending our call for the third quarter results. I will start with the highlights. So let me start with sales. Sales volumes improved, as you saw, in all business. And here I want to highlight that was a very well-defined commercial strategy from the team. This strong sales with a better FX allowed us a strong EBITDA of 6.5 billion reais. despite the higher cash costs. Indeed, the cash cost was higher than the previous quarter. And in the previous quarter in the last year, but that was planted as you know. And I want to reinforce here that considering the performance that we have been seeing at the Hibas in the ramp up, considering the efficiency level, which is higher than we planted, I have to say that the such a peak of higher cost is already behind us. So we will see for the details during the presentation. My last comment on the financial side is related to leverage. which is still declining as planned now with 3.1. And it's still on the leverage topic. I would like to share with you that on the capital location side, I do not see Suzano going through any transformational move in the near future. So leverage will keep declining. It's click declining trend going forward. Also during the quarter, we also had the closing of Lansing. The closing of forest asset from BTG that we acquired. And in the beginning of October, we also had the closing of Suzano Packaging US. So Suzano Packaging US, the former package assets in Pineblood. So looking forward, the focus of Suzano for the next quarters will be generating value from those assets that we brought to our portfolio. Delivering what we planned for the Cerrado project and also keep deleveraging the business as a whole. So that's the main highlights from Suzano in the third quarter. So let me hand over to Fabio, which will cover the paper and packaging business. Fabio, please go ahead.

Thanks, Beto. And good morning, everyone. Please, let's turn to the next page on the presentation. Through the combination of good commercial execution and logistics flexibility, we were able to deliver the highest EBITDA since three quarters last year, despite growing operational challenges related with bottlenecks in our export supply chains. On the domestic market, according to IBA, print and write-in demand Consider imports increasing 7% in the first two months of the three-quarter on a year-over-year basis. Sales from domestic producers grew 8% on the same comparison base. Demand was solid in all product lines, supported by better economic activity and from the election cycle tailwind on the coated paper grades. Demand for paper board continued to grow, increasing a strong 18% during the first two months of the quarter compared to the same period of last year. Paper board demand has been strong this year in all market segments, supported by the growth in paper packaging consumption and better economy overall. In the international markets, demand was sustained in North America and Latin. While in Europe, demand for paper has shrunk during the summer due to seasonality. Prices in US dollars were mostly flat in international markets during the period. Looking now to Suzano's figures, our sales volume in the quarter was 8% higher year-over-year and 9% above Q2, performance pushed by higher sales volumes in the domestic market. Our export volumes were mostly flat versus the same period of last year and increased versus last quarter, although we have seen a continuous deterioration of the container supply chain, with congestions at ports domestically and abroad related to poor service levels and higher costs for now container carriers. This is a result of a mix of different events, Red Sea traffic restrictions, low water level Panama Channel, weather-related restrictions at Brazilian ports, which seems to be creating the perfect storm for Brazilian export companies that rely on containers. Suzane is seeking alternatives to continue to serve its international customers despite these issues. The 3% net price growth over Q2 was led by slightly better prices in the domestic market and favorable FX on our exports. On a year-over-year comparison, prices were lowered by 3.8%, reflecting market adjustments after the normal price levels of the first half of 2023. Looking at dividend performance, the 13% quarter-over-quarter was driven by higher sales volumes and better prices. In the quarter, we had the annual maintenance downtimes at Limeira and Suzano mills, which are the two largest paper mills Suzano have, pressuring the COGS in line with the budget. Compared to Q3, 2023, Suzano EBITDA decreased by 80% due to lower prices in both, Suzano paper packaging EBITDA decreased by 80% by lower price in both domestic and international markets, despite higher sales volumes. Looking ahead, we expect a strong seasonal demand in Q4 from our domestic market for uncoated papers and paperboard. For coated grades, we anticipate a return to structural decline as the election cycle impact fades. On international developed markets, we foresee demand return to a structural decline trend. In Latin America, we expect demand to be more resilient, albeit also declining. Cost-wise, logistics expenses are expected to remain high due to ongoing disruptions and geopolitical uncertainties, which could offer support to paper prices in most markets. Regarding our cash costs, we anticipate improved performance on COGS in Q4 following the lack of maintenance stoppages. We also foresee stable cash costs X downtime in the upcoming quarter. On October 1st, Susano kicked off its operations of the Pine Bluff and Waynesville packaging assets acquired from Pact of Evergreen. Our first weeks went quite well so far, focused on supporting our new colleagues, customers and suppliers through this transition. We remain very excited about the business opportunities that this move will bring Susano in the future. Now, I'll hand it over to Leo, who will be presenting our poll business results.