Suzano SA

According to IBÁ, domestic sales of printing and writing paper and paperboard decreased by 9.9% in 2023 compared to 2022, while imports increased by 9.4%.

Our domestic sales decreased by 2.9% compared to 2022, as we faced increased levels of inventory throughout the supply chain, which hampered sales of coated paper and paperboard. Additionally, changes in consumption behavior prompted by digitization and a strong comparison period in 2022 also contributed to the decrease. On the tissue side, we experienced an upside as a result of the acquisition of Kimberly Clark's tissue business in Brazil. Overall, paper sales decreased to 1.29 million tons in 2023, compared to 1.31 million tons in 2022.

In 2023, our net revenue from paper sales totaled R$9,078.3 million, a 7.5% increase from 2022. Net revenue from domestic sales increased 14.7%, while export’s decreased 8.8%, with 74.0% coming from domestic sales and 26.0% from exports. The geographic breakdown of our total revenue from paper sales in 2023 was 90.0% in Latin America (including Brazil), 5.2% in North America and 4.9% in other regions.

The average net paper price in 2023 was R$7,030/ton, 8.7% higher than in 2022. In the domestic market, the average net paper price was R$7,275/ton, a 18.1% increase compared to 2022. In the international market, average price was US$1,284/ton, a 9% decrease compared to 2022. In Brazilian real, the average price in the international market was R$6,415/ton, 12.1% lower than in 2022.