Suzano – Second Quarter 2022

HIGHLIGHTS
• Pulp sales of 2,663 thousand tons (+5% vs. 2Q21).
• Paper sales3 of 324 thousand tons (+10% vs. 2Q21).
• Adjusted EBITDA1 and Operating cash generation²: R$6.3 billion and R$5.1 billion, respectively.
• Adjusted EBITDA¹/ton of pulp of R$2,103/ton (-3% vs. 2Q21).
• Adjusted EBITDA1/ton3 of paper of R$2,167/ton (+44% vs. 2Q21).
• Average net pulp price in export market: US$732/ton (+15% vs. 2Q21).
• Average net paper price3 of R$6,200/ton (+31% vs. 2Q21).
• Pulp cash cost ex-downtime of R$854/ton (+26% vs. 2Q21).
• Leverage ratio in USD declines to 2.3 times and stable net debt in USD, despite the investment cycle.
• Cerrado Project achieves 21% of physical progress and 15% of financial progress.

The fundamentals of the pulp market remained favorable in the second quarter of 2022, marked by positive demand and several factors constraining pulp supply, sustaining a scenario of low availability in the chain and supporting continued implementation of price increases over the period. In this scenario, the Company delivered consistent operational performance with strong sales volume, due to the higher availability of production in a period less affected by scheduled maintenance downtimes. Pulp production cash cost remained pressured by commodity prices, which remained at high levels, but declined slightly in the quarter due to greater availability of industrial operations. In the paper segment, EBITDA set a new record, advancing 58% on the same period last year, driven by solid demand in in all market segments, which had a positive impact on the implementation of price increases. Consolidated adjusted EBITDA was a record for a second quarter (R$6.3 billion) and adjusted EBITDA/ton reached the highest level in the Company’s history.

In liability management, net debt in USD remained stable despite the ongoing investment cycle, while leverage in USD, measured by net debt/Adjusted EBITDA in the last 12 months, fell to 2.3 times. The result of cash flow hedge operations once again attested to the long-term consistency of the financial policy in managing foreign exchange risk, with positive mark-to-market and cash adjustments in cash flow (ZCC).

On its ESG agenda, in 2Q22, Suzano published its Annual Sustainability Report and Sustainability Center related to 2021, which jointly address the Company’s material aspects, as well as indicators and performance in frameworks such as GRI and TCFD, among others. Moreover, maintaining the good practice started in 2021, on June 23, the Company performed its second ESG Call, a multi-stakeholder event, focusing in this edition on the material topics Climate Change, Social Development and Biodiversity Conservation.
details at: https://s1.q4cdn.com/987436133/files/doc_downloads/2022/07/2T22/Release-de-Resultados_2T22_ENG_vFinal_com-p%C3%A1ginas_CVM.pdf

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