Suzano (SUZB3) Investor Day 2024 summary

Strategic direction and market positioning

• Focus on cost reduction, capital allocation, and competitive positioning, with no plans for sizable inorganic growth or transformation M&A in the near term.

• Advancing best-in-class pulp cost vision, operational excellence, and supply chain resilience, while expanding into North America and strengthening packaging and consumer goods.

• Emphasis on leading fiber substitution, supporting customers with technology and technical services to drive hardwood pulp adoption.

• Commitment to gender diversity, targeting 30% women in leadership by next year, and linking bonuses to this goal.

• Ongoing investment in leadership development, employee engagement, and operational excellence across global teams.

Operational excellence and cost management

• Increasing self-sufficiency in wood supply, reducing exposure to spot markets, and investing in mechanization and automation to address labor shortages.

• Ambitious plan to increase forest yield (MAI) by 7–13% by 2034, leveraging digital monitoring, georeferencing, and advanced genetics.

• Targeting a reduction in average logging distance from 186 km to 150 km by early next decade, saving nearly BRL 500 million annually.

• Notable 15% MAI improvement in new forests in Mato Grosso do Sul, with a goal to reach a 65 km radius and 35% reduction in wood cash cost by early next decade.

• Increasing mechanized silviculture to 85% by 2030, reducing labor intensity by 40%.

Major projects and business development

• Cerrado Project, the world’s largest single-line pulp mill, delivered on time and on budget, with full ramp-up expected by January 2025.

• Ribas mill to achieve a 30% cash cost reduction in 2025, with structural costs expected to fall below $100/ton by 2032.

• U.S. paperboard acquisition (Pine Bluff and Waynesville) provides 420,000 tons of integrated capacity, with a three-phase plan to improve operations, reduce costs, and explore further expansion.

• New tissue mill at Aracruz to increase capacity by 20%, with start-up advanced to 4Q25 and IRR >18%.

• Consumer goods division achieved 46% cash cost reduction at Mogi mill and is accelerating the Aracruz tissue plant launch to Q4 2025, targeting 340,000 tons annual capacity.