Suzano (SUZB3) Conference presentation summary

Key financial highlights

• Net revenue reached US$9.1 billion in LTM 1Q26, with adjusted EBITDA of US$3.9 billion and a 43% margin.

• Net debt stands at US$13.0 billion, with a net leverage ratio of 3.3x.

• Revenues are predominantly from international markets, with 75% from pulp and 64% from tissue.

• Conservative financial policy includes commodity hedging and diversified global funding sources.

• All 2025 debt issuances were below the bond curve, achieving the lowest G-spread for the 2036 bond.

Business strategy and competitiveness

• Focus on enhancing competitiveness through forestry productivity, logistics optimization, and strategic wood swap transactions.

• Ribas do Rio Pardo mill outperformed expectations, exceeding nominal capacity with no additional capex required.

• Competitiveness Acceleration Program identified 77 initiatives across the value chain, targeting significant cost reductions.

• Cost reduction initiatives leverage AI and process optimization, aiming for R$80M–R$115M in annual savings in paper and packaging.

• Strategic roadmap prioritizes value capture from capital allocations and positions for leadership in a changing market.

Market dynamics and growth

• Global market pulp demand continues to grow, driven by China and tissue consumption.

• BHKP (hardwood pulp) is gaining market share over BSKP (softwood pulp), with a 2.2% CAGR for BHKP from 2020–2024.

• New integrated BHKP capacity in China and Indonesia may pressure non-integrated players and reduce market pulp demand.

• Despite new capacities, vertical integration in Asia is expected to grow, and closures may balance oversupply.

• Pulp prices show lower volatility compared to other commodities, supporting stable cash flows.