Suzano S.A. American Depositary Shares (each representing one Ordinary Share ) representing one Ordinary Share) 2026 Q2 Earnings Call

Hi, everyone. Thank you for attending our second quarter result call. I want to start with the highlights of the following three points. The first one, we reported solid operation results with a strong free cash flow, once again showing resilience of the business, even with more volatile geopolitical conditions. The second point that I also would like to highlight is that on July 1, we had the Arbex closing, fully aligned with what we had previously expected in terms of timeline. The governance and the management team is already 100% in place, and now we will focus on the integration and on capturing efficiency gains of this new organization. The third point, I also would like to say that Suzano will keep the focus on reducing the TOD, the Total Operational Disbursement, and, of course, on de-leveraging the business.

I also want to take the opportunity to say that today is the last call for Aires Galhardo, our Vice President for the industry operation and also engineering. Aires is leaving a legacy of major achievements of Suzano, and we all want to wish him every success in his next journey. So thank you very much, Aires. On the next call, we will already have Carlos Aníbal as the company's Industrial and Engineering Executive Vice President. Carlos has been with us for 23 years already, has previously held the roles of Paper Business Vice President, Commercial Vice President, and also a Forestry Vice President. So huge experience in many areas of the company, and he has been both a supplier and a customer to the industrial area. So we wish him great success in this new cycle. Very welcome, Carlos. Having said that, I will turn over to Fabio to talk about the paper business.

Thanks, Beto. Good morning, everyone. Please, let's turn to the next slide. Our second quarter performance reflect higher sales volumes and prices, as well as lower SG&A on a quarter-over-quarter basis. These positive factors were offset by inflationary pressures on wood and oil-related products and logistics, as well as longer than expected ramp-up following our annual maintenance downtime in Pine Bluff mill. Looking at our addressable markets in Brazil, print and write demand, according to Ibá, remained stable in the second quarter compared to the same period of last year. On a quarter-over-quarter basis, the 4% growth was driven by seasonality and higher demand for coated papers, benefiting from increased promotional and communication-related activity ahead of this year's elections. In such context, Suzano domestic print and write volumes grew 4% on a year-over-year basis and 10% on a quarter-over-quarter basis.

In the export markets, print and write demand declined 4% year over year in the U.S. and Europe, according to PPPC. Latin America showed stability, led by an increase in participation of Asian players in the region. Now looking at paperboard. Demand in Brazil grew 8% in the second quarter when compared to the same period of last year, and grew 11% against the first quarter. We noticed some customer inventory build-up in the first half of the year ahead of the implementation of paperboard price increases. Against this backdrop, Suzano domestic paperboard volumes grew 11% on a year-over-year basis and 28% on a quarter-over-quarter basis. In the U.S., according to AF&PA's data, SBS shipments grew by 11% year over year, albeit at an operating rate around 82%, which is softer year over year and stable quarter over quarter.

Adjusted for recent capacity closure of its Smurfit Westrock La Tuque mill, Clearwater's Cypress Bend capacity reduction, and the interruption of operations at the Nippon Dynawave facility, operating rates increases to 90% and should support better market dynamics in the second half of the year. Our Suzano Packaging sales volumes were quite stable on quarter over quarter and year over year basis. Turning to the EBITDA performance, our Brazilian operations improved 28% on a quarter-over-quarter basis, with higher volumes and better prices domestically and from our exports, despite unfavorable FX. Compared to second quarter 2025, the EBITDA from our Brazilian operations declined 20% due to lower prices, export volumes, and FX.

Suzano Packaging EBITDA was impacted by the scheduled maintenance outage in May and operational instability returning from the outage, as well as increased costs due to the ongoing Middle East conflict, especially in oil-related imports, mainly resins and logistics. Looking ahead to Suzano's paper packaging business performance, sales volumes from our Brazilian operations tend to improve across both domestic and export markets, given historical. In the U.S., we start Q3 with a strong order book with improvements in supply and demand dynamics. We remain focused on managing inflationary pressures related to the Middle East conflict, mainly in resin and logistics. Through initiatives already implemented or currently underway, we expect to mitigate most of these impacts going forward. Now I will hand over to Leo, who will be presenting our pulp business results.

Thanks, Fabio, and good morning, everyone. Let me highlight the main developments in our pulp business unit during Q2 2026 and share our outlook ahead. Q2 was marked by different dynamics in pulp markets. In Europe and North America, pulp demand recurrently outperformed expectations, supported by stronger paper production due to war-related effects and inventory replenishments across the value chain as customers aim to get ahead of expected cost increases. These factors led to consistent month-over-month increases in pulp prices during the quarter. In China, the narrowing softwood-hardwood price spread and the high availability of softwood pulp at Chinese ports weighed on purchasing activity from paper producers. Despite solid paper production, higher wood costs impacted integrated local producers and a greater clarity around the delayed startup of Oki 2 mill.

This unfavorable backdrop, driven primarily by softer dynamics, affected the broader pulp market and led to hardwood pulp price concessions towards quarter end. Even at lower prices, customer purchasing activity remained subdued in June. At Suzano, our Q2 was marked by constrained production output due to a concentration of planned maintenance downtimes added to our ongoing reduced operating rate, as well as an inventory rebuilding toward minimum operation levels required to support our operations, as previously discussed. As a result, our sales reached 2.9 million tons during Q2, lower compared to Q2 2025 and slightly above Q1 2026. Higher prices across all markets, combined with the recovery of delayed invoicing to China and Asia, drove our average export price to $601 per ton in the quarter.

Turning to the right side of the slide, the BRL 4.2 billion in EBITDA with a 48% margin reflected higher prices in USD, partially offset by higher cash costs and FX headwinds. Looking forward, I would like to share our view on the key factors influencing pulp market fundamentals. Market dynamics in July were quite similar to those observed at the end of the second quarter. Healthy demand in Europe and North America, but mounting pressure in Asia for the same reasons pointed out before. As hardwood pulp prices in China approach the mid $500 USD range, paper producers stepped up buying activity and our July order intake returned to healthy levels. In addition, our market intelligence team indicates that hardwood pulp inventory levels remain well-balanced, both at Chinese ports and on the hand of paper producers in China.

As we move into August, we see a more constructive environment developing in Asia. Seasonal demand is expecting to strengthen. Hardwood pulp prices have moved below the cash cost of a number of Chinese producers and a wider softwood-hardwood price spread, enhance the competitiveness of hardwood grades. Together, these factors should support higher order intake volumes in China and Asia, reinforcing our confidence in a stronger second half of the year. Furthermore, the prospect of paper price increase announcements in Asia should provide additional tailwind for pulp demand in the coming months. While demand indicators are becoming more constructive, the supply side also presents potential upside risks to market fundamentals. At current CIF China price levels, a meaningful share of global pulp capacity remains under economic pressure.

According to a well-known industry consultancy, their just updated numbers, approximately 17 million tons of softwood and 5 million tons of hardwood capacity are currently operating below cash cost levels at these China prices, representing close to 30% of global market pulp production. Production curtailments announcements have reached the headlines during these past months, mostly in softwood pulp, but still insufficient to rebalance the market fundamentals. At the same time, industry profitability continues to be pressured by rising input costs, several of which are linked to ongoing geopolitical tensions.

Still on the pulp supply side of the equation, a stronger El Niño season this year may increase the likelihood of weather-related disruptions in key producing regions, with possible implications for wood availability and production costs. Together with the recent forest license revocations in Indonesia, these factors could contribute to a tighter than expected S&D scenario in the short term. To conclude, I would like to reiterate that Suzano's unmatched business platform, supported by our best-in-class assets and unique end-to-end logistics capability, provide us the agility to respond quickly to any market conditions and capture commercial opportunities. With our inventory levels already aligned with our operational needs, we remain well-positioned to navigate the ongoing volatile global environment. With that said, I would now like to invite Aires to share our cash cost performance for the quarter.

Thank you, Leo. Good morning, everyone. Cash cost excluding downtime reached BRL 843 per ton in the second quarter of 2026, broadly in line with our guidance. The 5% sequential increase mainly reflect higher input costs, particularly natural gas, caustic soda, and chlorine dioxide, amid continued pressure from global commodity and energy markets from the conflict in the Middle East. Wood costs also increased quarter-over-quarter, mostly driven by longer cartages and mill production mix. These effects were partially offset by stronger utilities results, supported by higher export volumes, favorable FX, and fixed cost dilution from higher production volumes. The conflict in the Middle East remain a factor affecting our year-over-year cost performance, contributing to higher chemical and energy price. Wood costs were pressured by higher logistics and harvesting activities driven by transportation mix, labor, and maintenance.