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    Eugenia Cavalheiro • Morgan Stanley

    Eugenia Cavalheiro's questions to Suzano SA (SUZ) leadership

    Eugenia Cavalheiro's questions to Suzano SA (SUZ) leadership • Q2 2025

    Question

    Eugenia Cavalheiro inquired about the progress of fiber-to-fiber substitution from softwood to hardwood, given the wide price spread. She also asked about the company's stance on shareholder returns, including dividends and buybacks, amid its deleveraging process.

    Answer

    EVP of Pulp Commercial & Logistics, Leonardo Grimaldi, confirmed that the high price spread is accelerating the fiber-to-fiber trend, with hardwood expected to continue gaining market share. EVP of Finance & IR, Marcos Moreno Chagas Assumpção, stated that dividends will adhere to the existing policy, but the company has a lower appetite for share buybacks at present due to a strong focus on deleveraging.

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    Eugenia Cavalheiro's questions to Suzano SA (SUZ) leadership • Q1 2025

    Question

    Eugenia Cavalheiro requested more clarity on the 'higher return required for investments,' asking for a potential number. She also asked if management would consider a dividend policy tied to free cash flow generation, given the deleveraging strategy and the $3 billion in potential investments.

    Answer

    Beto Abreu, an executive, declined to provide a specific return hurdle, stating it is deal-dependent but must be higher to compensate for increased environmental risk. He also confirmed that the current dividend policy remains unchanged. Marcos Assumpcao, an executive, added that while there is no formal policy tied to FCF, the company has a history of returning excess cash to shareholders through extraordinary dividends and buybacks when generation is strong.

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