Suzano S A : Update on Covid-19 Presentation

Conference Call - Update on Covid-19

April 09, 2020

1. Management Focus

1. Financial Highlights

1. Pulp & Paper Market

1. Management Focus

1. Financial Highlights

1. Pulp & Paper Market

on Covid-19 context

People

Society

Business

continuity

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to care for our People

Home office (except for activities that requires on-site presence)

Cancellation of events, trips, visits to the mills and face- to-face meetings

Removal of pregnants, patients with chronic diseases and people over 60 years

Increased of cleaning and sanitizing common areas

Maintenance of operations with minimal employees and service providers

Guidance for employees and service providers to keep their distance

Measurement of body temperature on arrival at the mill gates

Chartered buses circulating with fewer passengers

Distribution of lunch boxes and greater spacing between tables and chairs

Application of the screening questionnaire for suppliers

Adoption of quarantine in case of risk of contamination

Maintenance downtimes postponements

Frequent information sharing

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to care for our Society

Maintenance of all direct jobs currently

Guarantee, for a period of 60 days, the maintenance of the transfer of 100% of the cost of the payroll of service providers' workers who will have their activities suspended

Donation of personal use materials, including toilet paper, napkins and disposable diapers

Support for initiatives to increase the production of ventilators for acquisition and donation to hospitals

Purchase of masks to be donated to hospitals and in search of ventilators and hospital masks

Support improvements of hospitals in regions we operate

Guarantee supply of essential items

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to care for our Business

Risk assessment for all operations

Business continuity plan developed for 100% of operations with different levels of contingency plans

Crisis Management Team installed on the corporate and business units levels

Push stocks forward in outbound logistics chain

Keep higher wood and raw materials inventories in the mills to mitigate logistics disruption

Close contacts with our suppliers, service providers and customers

units levels

Budget revision on discrecionary disbursements (capex and opex)

Hiring freeze, salaries and promotion postponements

Keep high liquidity position as "war chest"

Monitor and mitigate credit risk

Quick response time in the decision making process with constant monitoring of exogenous risks

Pulp & Paper considered as essential by WHO and several countries

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1. Management Focus

1. Financial Highlights

1. Pulp & Paper Market

and long-term debt profile

1Q20 initiatives

Roll-over of EPPs

• US$750 M paid down (~1.5 year)
• US$850 M issued (~5 years)
• Same cost

Make-whole of 2021 bond (US$190 M)

Withdraw of US$500 M RCF

• Effective April 1st, 2020
• Cost: LIBOR + 1.3% p.y.

Liquidity and Debt Profile (US$ billion) - Pro Forma1

	2.5
RCF	0.2	12.7

Non-Trade

Finance

Cash on	2.4	1.1
hand	0.9

		0.2		Trade-
			Finance
Liquidity	20202	2021	2022	2023 onwards
	(2Q-4Q)			83% of total debt

1. Cash position on April 1, 2020. Total debt position reported as of 12/31/2019, adjusted by the the 1Q20 Initiatives described above, as well as debt matured in 1Q20.	9
R$/US$ = 5.2035 (04/01/2020) | 2. Main maturities remaining in 2020 (2Q-4Q): US$0.5 billion in CRAs and US$0.4 billion in EPPs and ACC/ACE.

benefits cash generation

EBITDA	~R$500 M benefit for each
R$/US$0.10 depreciation

Sensitivity analysis on FX (R$/US$ 4.0307 on 12/31/2019) - R$ billion

FX level	4.50		5.00		5.50
	20201		2021	20201		2021	20201		2021
EBITDA	1.9		2.5	3.8		5.0	5.6		7.5
(-) ZCCs cash	(0.6)		(0.0)	(1.5)		(0.7)	(2.4)		(1.5)
adjustment
(-) Swaps cash	(1.2)		(0.3)	(1.7)		(0.4)	(2.2)		(0.5)
adjustment2
(=) Net cash	0.1		2.2	0.6		3.9	1.0		5.5
flow impact

Zero-Cost	Consistent strategy and
Collars	rolling position

Average strikes of ZCCs (R$/US$)

				5.48	5.58
	4.53	4.60	4.70	4.50
4.20	4.10			4.60	4.63
Calls			4.23
	4.12	4.17	4.13
Puts 3.87	3.93
2Q20	3Q20 4Q20	1Q21	2Q21	Jul/21 Aug/21 Sep/21

Interest rate

swaps

Opportunities to minimize cost of debt

Low-sulphur

fuel oil

Hedging of close to 100% exposure of next 12 months with low oil prices

All hedging contracts with no margin calls

1. Impact for transactions remaining in Q2 to Q4/2020. | 2. As of April 06, 2020 market curves for calculations on interest rates swaps.

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1. Management Focus

1. Financial Highlights

1. Pulp & Paper Market

demand growth amid the perspective of paper segment contraction

Suzano Pulp Revenues by end-use 2019 and 2020 trends:

3%	Positive for packaging:
Others
Increase driven by
	e-commerce and food delivery
	16%
	Specialties

Positive in all regions

61% Tissue

Negative for decorative papers, but better view on at-home consumption

Negative driven by sharp decrease in Europe and Americas

20%

P&W

Source: Suzano Market Intelligence	12

related to pulp capacities shutdowns

Source: Fastmarkets RISI

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Unexpected Downtimes - 1H20

Asia: 380 k tons BHKP

Europe: 260 k tons BHKP/BSK/UKP/BCTMP

North America: 240 k tons BSKP/UKP

Latin America: 60 k tons BHKP/BSKP/UKP

Oceania: 70 k tons UKP/Mechanical

Total supply reduction already confirmed:

Source: Brian McClay, RISI and Suzano Market Intelligence

for the supply side

Other factors in place to be considered:

1. Closure of sawmills in North America increasing the risk for

o Less

collection due to

social isolation

1. Mills likely to postpone scheduled

o Risks of interruption in the chain and

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on the Covid-19 context

1. Strong cost competitiveness

1. Production distributed on several sites mitigate operational risk

1. Geographically diversified revenues and customer base

1. Pulp end-use mostly linked to the tissue segment

1. FX depreciation benefits cash flow generation

1. Zero refinancing risk up to 2022 even without free cash flow generation

1. Smooth debt profile and no financial covenants

1. Conservative and formal Indebtedness, Dividend and Hedging policies in place

1. Leverage framing program in progress as planned

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