Suzano S.A.

Ladies and gentlemen, thank you for holding and welcome to Susana's conference call to discuss the results for the fourth quarter of 2024. We would like to inform you that all participants will be in listen-alone 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, and you can change the audio by pressing 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 original audio for a better experience. Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Susano's management 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 Suzano and could cause the results to differ maturely from those expressing such forward-looking statements. Now, I'll turn the conference over to Mr. Beto Abreu. Please, you may begin your conference, sir.

Thank you very much. Hello, everyone. Welcome. Thank you for attending the first quarter call. And before going through the results, I want to say that I'm very proud about what the team has delivered in the first quarter, and also in 2024. The name of the game in this last quarter was Flawless Execution. And I want to recognize the operational excellence forward and the power of the team, the power of this organization, when we decide to deliver together something. We reach out recording sales for the fourth quarter and also, of course, for the year. Leo, the Outbound Logistics team did a tremendous job. And Hibas, with its impressive performance, reached in 2024 900,000 tons of production and 700,000 tons of sales. And let's remember, this is fully in line with the guidance that we have shared with you after the startup in mid 2024. Moving to cost, in the first quarter 2024, we were also able to set up for ourselves a new baseline of cash costs for our operation. The combination of those figures was a strong EBITDA of 23.8 billion for the year, bringing our leverage in dollar chains for 2.9 times. I want to highlight this one since leverage is a key metric for us and guide us our capital location decisions. Having said that, I want to invite Fabio, now also in charge of our Suzano packaging business in US to share his insights of our paper and packaging business. Fabio, I'll hand over to you. Thank you very much.

Thanks, Beto. Good morning, everyone. Let's turn to the next page of the presentation. We have finalized 2024 with a strong operational performance for our Brazilian operations and significant advancements in North America. The assets we have acquired from Pacted Evergreen will be referred from now on as the zone package in the U.S., and their results are incorporated into our paper and package business unit results. During the quarter, we happily welcomed to the Suzano family around 870 colleagues that work in Pine Bluff and Waynesville. Looking to the Brazilian market, according to IBA, print and writing demand, including imports, increasing by 11.7% in the first two months of the fourth quarter, compared to the same period of last year. Sales from domestic producers grew by 12.5%, while imports moderated and grew by 4% on the same basis. Demand for uncoated paper was bolstered by the federal government's purchase of textbooks. For coated paper, although demand is lower than a quarter with the end of the election cycle, it remains stronger when compared to the same period of last year. Markets outside Brazil performed differently. In North America and Latin America, elections and inventory built positively influenced demand, supporting growth demand in 2024 compared to 2023. However, in Europe, the situation has become challenging as demand positive effects have diminished and paper consumption has returned with declining historical rates. Demand for paperboard in Brazil remained robust, increasing by 9% in the first two months of the quarter, compared to the same period of last year. This growth reflects the performance of the Brazilian economy in consumption levels, despite some cooling in certain segments over the last quarter. In the U.S. market, a focus region for Suzano packaging operations, according to Numera, there was a 21% recover in SPS demand in the fourth quarter of 2024, compared with the fourth quarter of the previous year, driven by strong performance in the food service sector, falling as lower than expected performance in 2023 and the first half of 2024. Looking at Suzano figures, our total sales volume in the fourth quarter was 15% higher year-over-year and 24% higher quarter-over-quarter as a result of the incorporation of Suzano package in sales. Regarding our Brazilian operations, we had an increase in sales compared to the last quarter, pushed by higher sales to the Brazilian market, while export reduced to continue unfavorable logistic conditions. The 4% net price growth over the last quarter is attributed to the impact of seasonal packaging and FX effects on pricing shown in reais. Compared to the last quarter of 2023, there's a 7% increase driven by the same factors just mentioned. Looking at EBITDA, there's a 7% reduction quarter over quarter and a 3% reduction versus the fourth quarter 2023. When compared to the full year, we also have a decrease, in this case, of 16%. Such performance reflects the impact of the incorporation of internal packaging in the U.S. That you all know, it's a turnaround case, as well as lower prices on both the Brazilian and external markets of our operations in Brazil. Now I want to provide some follow on Susano package. The integration of our new employees, assets, customers, and suppliers are on track and reflect our expectations prior to the acquisition. During the fourth quarter, we have successfully renegotiated all commercial contracts, securing much better terms for Susano in 2025 and onwards, and secured synergies on raw materials and logistics. Better prices and lower costs will positively impact Cezano Packing results in 2025. The industrial turnaround as shared with you on the last Cezano Day, as well as CapEx plan, are progressing as planned, and we remain optimistic about the expected future value creation. Considering only our operations in Brazil, our business unit delivered the best quarter in terms of EBITDA of 2024, a result of improved sales levels, effects, impacts on prices, as well as cost reduction efforts. We end 2024 with lower cash costs compared to 2023. Looking ahead, we anticipate strong demand in the Brazilian market for uncoated and paperboard lines during 2025. Outside Brazil, we anticipate the return to the structural decline in demand in developed regions and less so in Latin America. In the U.S., paper board demand is expected to remain strong throughout 2025. Polk prices announcements early in 2025 could offer support to higher paper prices. In terms of logistics and input costs, we expect some stability on the absence of trade disruptions and geopolitical turmoil. Now, I'll hand over to Leo, who will present our Polk business results.