Suzano 6K Current report

0000909327ifrs-full:CountryOfDomicileMembersuz:BrazilianFederalLongTermRateMembersuz:BNDESTLPMembersuz:LaterThanFiveYearsAndNotLaterThanSixYearsMember2024-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2024.

Commission File Number 001-38755

Suzano S.A.
(Exact name of registrant as specified in its charter)

SUZANO INC.
(Translation of Registrant’s Name into English)

Av. Professor Magalhaes Neto, 1,752
10th Floor, Rooms 1010 and 1011
Salvador, Brazil 41 810-012
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☑ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐



			Suzano S.A.

INDEX



CONSOLIDATED BALANCE SHEET			1
CONSOLIDATED STATEMENTS OF INCOME (LOSS)			3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)			4
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY			5
CONSOLIDATED STATEMENTS OF CASH FLOW			6
1 COMPANY’S OPERATIONS			7
2 BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION			10
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES			11
4 FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT			13
5 CASH AND CASH EQUIVALENTS			25
6 MARKETABLE SECURITIES			26
7 TRADE ACCOUNTS RECEIVABLE			27
8 INVENTORIES			28
9 RECOVERABLE TAXES			29
10 ADVANCES TO SUPPLIERS			30
11 RELATED PARTIES			30
12 INCOME AND SOCIAL CONTRIBUTION TAXES			32
13 BIOLOGICAL ASSETS			36
14 INVESTMENTS			38
15 PROPERTY, PLANT AND EQUIPMENT			39
16 INTANGIBLE			40
17 TRADE ACCOUNTS PAYABLE			41
18 LOANS, FINANCING AND DEBENTURES			41
19 LEASES			44
20 PROVISION FOR JUDICIAL LIABILITIES			46
21 EMPLOYEE BENEFIT PLANS			47
22 SHARE-BASED COMPENSATION PLAN			48
23 LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES			49
24 SHAREHOLDERS’ EQUITY			50
25 EARNINGS (LOSS) PER SHARE			51
26 NET FINANCIAL RESULT			52
27 NET SALES			52
28 SEGMENT INFORMATION			53
29 INCOME (EXPENSES) BY NATURE			55
30 EVENTS AFTER THE REPORTING PERIOD			55



i



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED BALANCE SHEET


	Note	06/30/2024	12/31/2023
ASSETS
CURRENT
Cash and cash equivalents	5	7,246,498	8,345,871
Marketable securities	6	14,360,936	12,823,886
Trade accounts receivable	7	7,224,926	6,848,454
Inventories	8	7,126,680	5,946,948
Recoverable taxes	9	986,254	888,539
Derivative financial instruments	4.5	1,161,258	2,676,526
Advances to suppliers	10	127,180	113,743
Other assets		889,421	925,105
Total current assets		39,123,153	38,569,072

NON-CURRENT
Marketable securities	6	454,077	443,400
Recoverable taxes	9	1,398,048	1,373,647
Deferred taxes	12	4,418,401	545,213
Derivative financial instruments	4.5	2,723,363	1,753,928
Advances to suppliers	10	2,412,921	2,242,229
Judicial deposits		420,103	361,693
Other assets		172,666	182,463

Biological assets	13	19,801,748	18,278,582
Investments	14	656,738	608,013
Property, plant and equipment	15	62,025,794	59,289,069
Right of use	19.1	5,153,462	5,196,631
Intangible	16	14,333,837	14,749,085
Total non-current assets		113,971,158	105,023,953
TOTAL ASSETS		153,094,311	143,593,025

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



1



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED BALANCE SHEET


	Note	06/30/2024	12/31/2023
LIABILITIES
CURRENT
Trade accounts payable	17	5,058,959	5,572,219
Loans, financing and debentures	18.1	7,250,222	4,758,247
Lease liabilities	19.2	797,863	753,399
Derivative financial instruments	4.5	469,544	578,763
Taxes payable		495,137	443,454
Payroll and charges		710,758	766,905
Liabilities for assets acquisitions and subsidiaries	23	103,488	93,405
Dividends and interest on own capital payable		3,010	1,316,528
Advances from customers		152,378	172,437
Other liabilities		712,716	339,683
Total current liabilities		15,754,075	14,795,040

NON-CURRENT
Loans, financing and debentures	18.1	81,374,152	72,414,445
Lease liabilities	19.2	5,806,489	5,490,383
Derivative financial instruments	4.5	5,262,785	1,857,309
Liabilities for assets acquisitions and subsidiaries	23	107,738	93,782
Provision for judicial liabilities	20.1	2,862,828	2,860,409
Employee benefit plans	21.2	845,262	833,683
Deferred taxes	12	12,596	11,377
Share-based compensation plans	22	291,166	268,489
Advances from customers		74,715	74,715
Other liabilities		88,310	83,093
Total non-current liabilities		96,726,041	83,987,685
TOTAL LIABILITIES		112,480,116	98,782,725

SHAREHOLDERS’ EQUITY	24
Share capital		19,235,546	9,235,546
Capital reserves		34,244	26,744
Treasury shares		(1,304,843)	(1,484,014)
Profit reserves		24,522,473	35,376,198
Other reserves		1,526,009	1,538,296
Retained losses		(3,518,499)
Controlling shareholders'		40,494,930	44,692,770
Non-controlling interest		119,265	117,530
Total equity		40,614,195	44,810,300
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		153,094,311	143,593,025

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



2



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF INCOME (LOSS)


		Second quarter		Six months YTD
	Note	06/30/2024	06/30/2023	06/30/2024	06/30/2023
NET SALES	27	11,494,136	9,159,634	20,952,738	20,436,017
Cost of sales	29	(6,093,239)	(6,228,181)	(11,793,109)	(12,196,855)
GROSS PROFIT		5,400,897	2,931,453	9,159,629	8,239,162

OPERATING INCOME (EXPENSES)
Selling	29	(700,053)	(626,809)	(1,353,468)	(1,231,162)
General and administrative	29	(557,771)	(427,208)	(1,060,746)	(817,443)
Income (expense) from associates and joint ventures	14	6,393	(14,052)	(3,514)	419
Other operating (expenses) income, net	29	464,180	1,205,293	423,971	1,183,989
OPERATING PROFIT BEFORE NET FINANCIAL INCOME (EXPENSES)		4,613,646	3,068,677	7,165,872	7,374,965

NET FINANCIAL INCOME (EXPENSES)	26
Financial expenses		(1,152,893)	(1,149,041)	(2,283,293)	(2,308,066)
Financial income		456,888	404,137	881,105	789,898
Derivative financial instruments, net		(3,890,341)	2,903,766	(4,524,878)	4,899,019
Monetary and exchange variations, net		(6,487,329)	2,376,817	(8,186,657)	3,624,935
NET INCOME (LOSS) BEFORE TAXES		(6,460,029)	7,604,356	(6,947,851)	14,380,751

Income and social contribution taxes
Current	12	(355,850)	(97,226)	(470,204)	(211,003)
Deferred	12	3,050,362	(2,429,507)	3,872,570	(3,849,332)
NET INCOME (LOSS) FOR THE PERIOD		(3,765,517)	5,077,623	(3,545,485)	10,320,416

Attributable to
Controlling shareholders’		(3,770,198)	5,073,127	(3,554,806)	10,310,498
Non-controlling interest		4,681	4,496	9,321	9,918

Earnings (loss) per share
Basic	25.1	(2.93809)	3.90544	(2.76777)	7.87524
Diluted	25.2	(2.93809)	3.90397	(2.76777)	7.87231

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



3



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Second quarter		Six months YTD
	06/30/2024	06/30/2023	06/30/2024	06/30/2023
Net income (loss) for the period	(3,765,517)	5,077,623	(3,545,485)	10,320,416
Other comprehensive income (loss)
Fair value investments in equity measured at fair value through other comprehensive income	2,391	(742)	2,649	(1,376)
Tax effect on the fair value of investments	(813)	252	(901)	468
Items with no subsequent effect on income (loss)	1,578	(490)	1,748	(908)

Exchange rate variations on conversion of financial information of the subsidiaries abroad	20,222	11,607	22,272	(8,832)
Items with subsequent effect on income (loss)	20,222	11,607	22,272	(8,832)
Total comprehensive income (loss)	(3,743,717)	5,088,740	(3,521,465)	10,310,676

Attributable to
Controlling shareholders’	(3,748,398)	5,084,244	(3,530,786)	10,300,758
Non-controlling interest	4,681	4,496	9,321	9,918

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



4



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


	Attributable to controlling shareholders’
	Share capital		Capital reserves		Profit reserves
	Share Capital	Share issuance costs	Stock options granted	Treasury shares	Tax incentives	Legal Reserve	Reserve for capital increase	Special statutory reserve	Investment reserve	Other reserves	Retained earnings (losses)	Total	Non-controlling interest	Total equity
Balances at December 31, 2022	9,269,281	(33,735)	18,425	(2,120,324)	879,278	1,404,099	19,732,050	2,192,442		1,719,516		33,061,032	105,333	33,166,365
Total comprehensive income
Net income for the period											10,310,498	10,310,498	9,918	10,320,416
Other comprehensive income (loss) for the period										(9,740)		(9,740)		(9,740)
Transactions with shareholders
Stock options granted (Note 22.3)			4,159									4,159		4,159
Shares granted (Note 22.3)
Share repurchase (note 24.2)				(778,500)								(778,500)		(778,500)
Unclaimed dividends forfeited				1,517,224				(1,517,224)
Fair value attributable to non-controlling interest													(2,687)	(2,687)
Internal changes in equity
Constitution of reserves							(14,972,324)		14,972,324
Realization of deemed cost, net of taxes										(59,626)	59,626
Balances at June 30, 2023	9,269,281	(33,735)	22,584	(1,381,600)	879,278	1,404,099	4,759,726	675,218	14,972,324	1,650,150	10,370,124	42,587,449	112,564	42,700,013

Balances at December 31, 2023	9,269,281	(33,735)	26,744	(1,484,014)	998,237	1,847,109	15,670,952	1,887,576	14,972,324	1,538,296		44,692,770	117,530	44,810,300
Total comprehensive income
Net income (loss) for the period											(3,554,806)	(3,554,806)	9,321	(3,545,485)
Other comprehensive income for the period										24,020		24,020		24,020
Transactions with shareholders
Stock options granted (Note 22.3)			12,377									12,377		12,377
Shares granted			(4,877)	4,877
Shares repurchased (Note 24.2)				(679,431)								(679,431)		(679,431)
Treasury shares cancelled (Note 24.2)				853,725			(813,258)	(40,467)
Fair value attributable to non-controlling interest													(7,586)	(7,586)
Internal changes in equity
Increase in share capital (note 24.1)	10,000,000						(10,000,000)
Realization of deemed cost, net of taxes										(36,307)	36,307
Balances at June 30, 2024	19,269,281	(33,735)	34,244	(1,304,843)	998,237	1,847,109	4,857,694	1,847,109	14,972,324	1,526,009	(3,518,499)	40,494,930	119,265	40,614,195

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



5



			Suzano S.A.
			Unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024
			(In thousands of R$, unless otherwise stated)

CONSOLIDATED STATEMENTS OF CASH FLOW


	06/30/2024	06/30/2023
OPERATING ACTIVITIES
Net income (loss) for the period	(3,545,485)	10,320,416
Adjustment to
Depreciation, depletion and amortization	3,943,188	3,451,862
Depreciation of right of use (Note 19.1)	167,592	141,654

Interest expense on lease liabilities	222,185	223,237
Result from sale and disposal of property, plant and equipment, intangible and biological assets, net (Note 29)	124,424	111,195
Income (expense) from associates and joint ventures (Note 14)	3,514	(419)
Exchange rate and monetary variations, net (Note 26)	8,186,657	(3,624,935)
Interest expenses on financing, loans and debentures (Note 26)	2,545,932	2,309,587
Capitalized loan costs (Note 26)	(802,515)	(511,650)
Accrual of interest on marketable securities	(645,445)	(529,887)
Amortization of transaction costs, premium and discounts (Note 26)	39,616	32,421
Derivative gains, net (Note 26)	4,524,878	(4,899,019)
Fair value adjustment of biological assets (Note 13)	(539,003)	(1,256,315)
Deferred income tax and social contribution (Note 12.2)	(3,872,570)	3,849,332
Interest on actuarial liabilities and cost of current service (Note 21.2)	37,926	34,615
Provision for judicial liabilities, net (Note 20.1)	53,680	62,154
Tax litigation reduction program		14,031
Provision (reversal) for doubtful accounts, net (Note 7.3)	(3)	10,287
Provision (reversal) for inventory losses, net (Note 8.1)	14,714	(854)
Provision (reversal) for loss of ICMS credits, net (Note 9.1)	(21,447)	202,961

Other	28,560	10,494
Decrease (increase) in assets
Trade accounts receivable	422,445	2,573,633
Inventories	(667,502)	(372,295)
Recoverable taxes	(74,202)	(335,807)
Other assets	(33,736)	235,459
Increase (decrease) in liabilities
Trade accounts payable	257,598	(105,036)
Taxes payable	224,019	82,064
Payroll and charges	(56,148)	(63,898)
Other liabilities	(86,269)	(158,527)
Cash generated from operations	10,452,603	11,806,760
Payment of interest on financing, loans and debentures (Note 18.3)	(2,529,991)	(2,352,484)
Capitalized loan costs paid	802,515	511,650
Interest received on marketable securities	570,829	391,601
Payment of income taxes	(173,287)	(89,482)
Cash provided by operating activities	9,122,669	10,268,045

INVESTING ACTIVITIES
Additions to property, plant and equipment (Note 15)	(5,025,174)	(5,759,447)
Additions to intangible (Note 16)	(84,566)	(197)
Additions to biological assets (Note 13)	(3,459,209)	(2,899,032)
Proceeds from sales of property, plant and equipment and biological assets	88,179	97,412
Capital increase in affiliates (Note 14.3)	(27,319)	(35,075)
Marketable securities, net	(894,973)	(683,505)
Advances for acquisition (receipt) of wood from operations with development and partnerships	(183,995)	(410,024)
Dividends received		4,869
Asset acquisition		(1,615,140)
Acquisition of subsidiaries		(1,072,657)
Net cash from acquisition of subsidiaries		5,002
Cash used in investing activities	(9,587,057)	(12,367,794)

FINANCING ACTIVITIES
Proceeds from loans, financing and debentures (Note 18.3)	10,934,280	5,276,816
Proceeds from derivative transactions (Note 4.5.4)	(682,787)	1,664,900
Payment of loans, financing and debentures (Note 18.3)	(8,921,182)	(765,533)
Payment of leases (Note 19.2)	(633,211)	(577,132)
Payment of interest on own capital and dividends	(1,318,418)	(2,415)
Liabilities for assets acquisitions and subsidiaries		(16,929)
Shares repurchased (Note 24.2)	(309,952)	(721,052)
Cash provided (used) by financing activities	(931,270)	4,858,655

EXCHANGE VARIATION ON CASH AND CASH EQUIVALENTS	296,285	(404,442)

Increase (Decrease) in cash and cash equivalents, net	(1,099,373)	2,354,464
At the beginning of the period	8,345,871	9,505,951
At the end of the period	7,246,498	11,860,415
Increase (Decrease) in cash and cash equivalents, net	(1,099,373)	2,354,464

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.



6



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

1 COMPANY’S OPERATIONS

Suzano S.A. (“Suzano”) and its subsidiaries (collectively the “Company”) is a public company with its headquarters in Brazil, at Avenida Professor Magalhães Neto, No. 1,752 - 10th floor, rooms 1010 and 1011, Bairro Pituba, in the city of Salvador, State of Bahia, and its main business office in the city of São Paulo.

Suzano’s shares are traded on B3 S.A. (“Brasil, Bolsa, Balcão - “B3”), listed in the New Market under the ticker SUZB3, and its American Depositary Receipts (“ADRs”) in a ratio of 1 (one) per common share, Level II, are traded in the New York Stock Exchange (“NYSE”) under the ticker SUZ.

The Company has 13 industrial units, located in the cities of Cachoeiro de Itapemirim and Aracruz (Espírito Santo State), Belém (Pará State), Eunápolis and Mucuri (Bahia State), Maracanaú (Ceará State), Imperatriz (Maranhão State), Jacareí, Limeira, Mogi das Cruzes and two units in Suzano (São Paulo State) and Três Lagoas (Mato Grosso do Sul State). Additionally, it has four technology centers, 30 distribution centers and four ports, all located in Brazil.

These units produce hardwood pulp from eucalyptus, coated paper, paperboard, uncoated paper and cut size paper and packages of sanitary paper (consumer goods - tissue) to serve the domestic and foreign markets.

Pulp and paper are sold in foreign markets by Suzano, as well as through its wholly-owned subsidiaries and/or its sales offices in Argentina, Austria, China, Ecuador, United States of America and Singapore.

The Company's operations also include the commercial management of eucalyptus forest for its own use, operation of port terminals, and holding of interests, as a partner or shareholder, in other companies or enterprises, and commercialization of electricity generated from its pulp production process.

The Company is controlled by Suzano Holding S.A., through a voting agreement whereby it holds 47.73% of the common shares of its share capital.

These unaudited condensed consolidated interim financial information was authorized by the Board of Directors on August 6, 2024.

1.1 Equity interests

The Company holds equity interests in the following entities:


			% equity interest
Entity/Type of investment	Main activity	Country	06/30/2024		12/31/2023
Consolidated
F&E Tecnologia do Brasil S.A. (Direct)	Biofuel production, except alcohol	Brazil	100.00	%	100.00	%
Fibria Celulose (USA) Inc. (Direct)	Business office	United States of America	100.00	%	100.00	%
Fibria Overseas Finance Ltd. (Direct) (1)	Financial fundraising	Cayman Island			100.00	%
Fibria Terminal de Celulose de Santos SPE S.A. (Direct)	Port operations	Brazil	100.00	%	100.00	%
FuturaGene Ltd.	Biotechnology research and development	England	100.00	%	100.00	%
FuturaGene Delaware Inc. (Indirect)	Biotechnology research and development	United States of America	100.00	%	100.00	%
FuturaGene Israel Ltd. (Indirect)	Biotechnology research and development	Israel	100.00	%	100.00	%
FuturaGene Inc. (Indirect)	Biotechnology research and development	United States of America	100.00	%	100.00	%
Maxcel Empreendimentos e Participações S.A. (Direct)	Holding	Brazil	100.00	%	100.00	%
Itacel - Terminal de Celulose de Itaqui S.A. (Indirect)	Port operations	Brazil	100.00	%	100.00	%
Mucuri Energética S.A. (Direct)	Power generation and distribution	Brazil	100.00	%	100.00	%



7



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024


			% equity interest
Entity/Type of investment	Main activity	Country	06/30/2024		12/31/2023
Paineiras Logística e Transportes Ltda. (Direct)	Road freight transport	Brazil	100.00	%	100.00	%
Portocel - Terminal Espec. Barra do Riacho S.A. (Direct)	Port operations	Brazil	51.00	%	51.00	%
Projetos Especiais e Investimentos Ltda. (Direct)	Commercialization of equipment and parts	Brazil	100.00	%	100.00	%
SFBC Participações Ltda. (Direct)	Packaging production	Brazil	100.00	%	100.00	%
Stenfar S.A. Indl. Coml. Imp. Y. Exp. (Direct)	Commercialization of paper and computer materials	Argentina	100.00	%	100.00	%
Suzano Austria GmbH. (Direct)	Business office	Austria	100.00	%	100.00	%
Suzano Canada Inc. (Direct)	Lignin research and development	Canada	100.00	%	100.00	%
Suzano Ecuador S.A.S. (Direct)	Business office	Ecuador	100.00	%	100.00	%
Suzano Finland Oy (Direct)	Industrialization and commercialization of cellulose, microfiber cellulose and paper	Finland	100.00	%	100.00	%
Suzano International Finance B.V (Direct)	Financial fundraising	Netherlands	100.00	%	100.00	%
Suzano International Holding B.V. (Direct)	Holding	Netherlands	100.00	%	100.00	%
Suzano International Trade GmbH. (Direct)	Business office	Austria	100.00	%	100.00	%
Suzano Material Technology Development Ltd. (Direct)	Biotechnology research and development	China	100.00	%	100.00	%
Suzano Netherlands B.V. (Direct)	Financial fundraising	Netherlands	100.00	%	100.00	%
Suzano Operações Industriais e Florestais S.A. (Direct)	Industrialization, commercialization and exporting of pulp	Brazil	100.00	%	100.00	%
Suzano Pulp and Paper America Inc. (Direct)	Business office	United States of America	100.00	%	100.00	%
Suzano Pulp and Paper Europe S.A. (Direct)	Business office	Switzerland	100.00	%	100.00	%
Suzano Shanghai Ltd. (Direct)	Business office	China	100.00	%	100.00	%
Suzano Shanghai Trading Ltd. (Direct)	Financial fundraising	China	100.00	%	100.00	%
Suzano Singapura Pte. Ltd (Direct)	Business office	Singapore	100.00	%	100.00	%
Suzano Trading International KFT(Direct)	Business office	Hungary	100.00	%	100.00	%
Suzano Ventures LLC (Direct)	Corporate venture capital	United States of America	100.00	%	100.00	%

Joint operation
Veracel Celulose S.A. (Direct)	Industrialization, commercialization and exporting of pulp	Brazil	50.00	%	50.00	%

Equity
Biomas Serviços Ambientais, Restauração e Carbono S.A. (Direct)	Restoration, conservation and preservation of forests	Brazil	16.66	%	16.66	%
Ensyn Corporation (Direct)	Biofuel research and development	United States of America	25.53	%	25.53	%
F&E Technologies LLC (Direct/Indirect)	Biofuel production, except alcohol	United States of America	50.00	%	50.00	%
Ibema Companhia Brasileira de Papel (Direct)	Industrialization and commercialization of paperboard	Brazil	49.90	%	49.90	%
Spinnova Plc (Direct)	Research of sustainable raw materials for the textile industry	Finland	18.77	%	18.78	%
Woodspin Oy (Direct/Indirect)	Development and production of cellulose-based fibers, yarns and textile filaments	Finland	50.00	%	50.00	%

Fair value through other comprehensive income
Celluforce Inc. (Direct)	Nanocrystalline pulp research and development	Canada	8.28	%	8.28	%
Nfinite Nanotechnology Inc. (Indirect) (2)	Research and development of smart nanocoatings	Canada	5.00	%

(1)On March 27, 2024, the entity was liquidated.

(2)On March 8, 2024, Suzano Ventures LLC acquired equity interest in the legal entity Nfinite Nanotechnology Inc., which is an indirect subsidiary of Suzano S.A.



8



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

1.2 Major events in the six-month period ended June 30, 2024

1.2.1 Effects of the war between Russia and Ukraine, and Middle East conflict

The Company has continuously monitored the impacts of the current war between Russia and Ukraine, and the Middle East conflict, both direct and indirect, on society, the economy and markets (global and domestic), with the objective of evaluating possible impacts and risks for the business.

The Company's assessment has covered five main areas:

(i)Personnel: Suzano has local employees and facilities in the city of Rehovot in Israel, through its subsidiary, FuturaGene Israel Ltd. The Company continuously monitors the situation.

In the context of the conflict between Russia and Ukraine, Suzano does not have employees or facilities of any kind in locations related to the conflict.

(ii)Supply Chain: the Company did not identify any short-term or long-term risk of possible interruptions or shortages of materials for its industrial and forestry activities. So far, the only effects observed have been greater volatility in commodities and energy prices.

(iii)Logistics: internationally, there was no change in the Company’s logistical operations, with all the routes used remaining unchanged and the moorings in the planned locations being maintained. At the domestic level, no changes in logistical flows were identified.

(iv)Commercial: to date, the Company has continued with its transactions as planned, maintaining service to its customers in all its sectors of activity. Sales to a few customers located in Russia were suspended, without any significant financial impact.

(v)Continuity of operations: The conflict in Israel may result in disruptions to biotechnology research and development operations at FuturaGene Israel Ltd.

As a result of the current scenario, the Company has taken steps to expand its monitoring of the situation, together with its main stakeholders, in order to ensure any updates and information flows required for its global decision-making are available in a timely manner.

1.2.2 Cerrado Project

On October 28, 2021, the Company's Board of Directors approved the realization of the Cerrado Project, which consists of building a pulp production mill in the municipality of Ribas do Rio Pardo, in the state of Mato Grosso do Sul.

The plant will have an nominal capacity of 2,550,000 tons of eucalyptus pulp production per year, with operations begin during the month of July 2024. The total investment is R$22,200,000, with substantial payments during the years of 2021 to 2025.

1.2.3 Cancellation of shares and new share buyback program

On January 26, 2024, the Board of Directors approved the cancellation of 20,000,000 common shares, with an average cost of R$42.69 per share, in the amount of R$853,725, which were held in treasury, without changing the share capital and against the balances of retained earnings reserves available. After the cancellation of the shares, the share capital of R$9,269,281 is divided into 1,304,117,615 common shares, all nominative, book-entry and with no par value.

On the same date, the Company decided on a new share buyback program, in which it may acquire up to a maximum of 40,000,000 common shares of its own issue with a maximum period of 18 months, which will end on July 26, 2025.



9



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

1.2.4 Share capital increase

On April 25, 2024, the Board of Directors approved the increase in the Company's capital stock, in the amount of R$10,000,000, without the issuance of new shares, pursuant to article 169, paragraph 1, of the Brazilian Corporation Law, to be paid in through the capitalization of the balance of the Capital Increase Reserve, pursuant to Article 199 of the Brazilian Corporation Law.

Due to the approval, the new wording of Article 5 of the Company's Bylaws will be as follows: "Article 5 – The Company's capital stock, fully subscribed and paid-up, is R$19,269,281 , divided into 1,304,117,615 common shares, all registered, book-entry and without par value."

1.2.5 Acquisition of equity interest in a specialty fibers business

On June 24, 2024, The Company entered into a partnership with B&C Holding Österreich GmbH (“B&C”), in which Suzano will (i) acquire a minority stake of 15.00% of the shares of Lenzing Aktiengesellschaft (“Lenzing”) held by B&C and (ii) sign a shareholders agreement with B&C establishing the main terms of the partnership, including: (a) the right to hold two seats on Lenzing’s Supervisory Board and (b) the right to alter the controlling position of Lenzing by Suzano acquiring an additional 15.00% (fifteen percent) of the shares of Lenzing held by B&C through a mandatory takeover offer procedure following the Austrian Takeover Law (“Transaction”).

The main terms and conditions of the Transaction are:

(i) Price for the minority stake: the price per share of EUR 39.70 (equivalent to R$238.07), with a total acquisition purchase price of EUR 229,971 (equivalent to R$1,379,090) to be fully paid at closing;

(ii) Suzano receives a right to alter the controlling position, acquiring an additional of 15.00% of the shares held by B&C as part of a mandatory takeover offer to be made by Suzano for all shares of Lenzing under Austrian Takeover Law at a price to be set in accordance with the requirements of the Austrian Takeover Law. Such right can be exercised by Suzano as from the day after the first anniversary of closing until the end of 2028;

(iii) Both steps, the acquisition of a minority stake and the change in the controlling position are subject to regulatory approvals common to this type of Transaction, including the mandatory takeover offer to be made by Suzano in compliance with Austrian Takeover Law in case of a change in control of Lenzing.

As of June 30, 2024, these steps had not been completed and, therefore, there are no accounting effects to recognize or disclose on this base date.

2 BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

The Company’s unaudited condensed consolidated interim financial information, for the six-month period ended June 30, 2024, are prepared in compliance with the international standard IAS 34 Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”) and disclose all the applicable significant information related to the financial information, which is consistent with the information used by Management in the performance of its duties.

The Company’s unaudited condensed consolidated interim financial information are expressed in thousands of Brazilian Reais (“R$”), as well as the amounts of other currencies, when applicable, were also expressed in thousands, unless otherwise stated.



10



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The preparation of unaudited condensed consolidated interim financial information requires Management to make judgments, use estimates and adopt policies in the process of applying accounting practices that affect the disclosed amounts of revenues, expenses, assets and liabilities, including the disclosure of contingent liabilities assumed. However, the uncertainty inherent to these judgements, assumptions and estimates could result in material adjustments to the carrying amount of certain assets and liabilities in future periods.

The Company reviews its judgments, estimates and assumptions continually as disclosed in the annual financial statements for the year ended December 31, 2023 (Note 3.2.34). For the six-month period ended June 30, 2024, there were no changes in these judgments, estimates and assumptions compared to disclosed on December 31, 2023.

The unaudited condensed consolidated interim financial information was prepared on historical cost basis, except for the following material items recognized:

(i)Derivative and non-derivative financial instruments measured at fair value;

(ii)Share-based payments and employee benefits measured at fair value; and

(iii)Biological assets measured at fair value;

The unaudited condensed consolidated interim financial information was prepared under the going concern assumption.

3 SUMMARY OF MATERIAL ACCOUNTING POLICIES

The unaudited condensed consolidated interim financial information was prepared based on the information of Suzano and its subsidiaries on the same base date, except for associates Ensyn, Futuragene and Spinnova, as well as in accordance with consistent accounting policies and practices.

The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2023, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those disclosed in the consolidated financial statements. Therefore, unaudited condensed consolidated interim financial information focus on new activities, events and circumstances and do not duplicate the information previously disclosed, except when Management judges that the maintenance of the information is relevant.

The accounting policies have been consistently applied to all consolidated companies.

There were no changes on such policies and estimates calculation methodologies, except for the application of the new accounting policies as of January 1, 2024 and whose estimated impact was disclosed in the annual financial statements of December 31, 2023.

3.1 New accounting policies and changes in accounting policies adopted

The new standards and interpretations issued, until the issuance of the Company’s unaudited condensed consolidated interim financial information, are described below.

3.1.1 Amendments to IFRS 7 – Supplier financing agreements and IAS 7 Statement of cash flow

The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the balance sheet, and not the amount or the timing of the recognition of any asset, liability, income or expense, or the information disclosed about these items.



11



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The amendments clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by expectations about whether an entity will exercise its right to postpone the settlement of the liability, explain that the rights exist if restrictive clauses are complied with at the balance sheet date, and introduce the definition of 'settlement' to clarify that it refers to a transfer to a counterparty of an amount in cash, equity instruments, other assets or services.

The Company assessed the content of this pronouncement and did not identify any impacts.

3.1.2 Amendments to IFRS 16 – Lease liability in a sale and leaseback transaction

The amendments change the requirements in IAS 1 with regard to the disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence the decisions that the primary users of the financial statements make on the basis of those financial statements.

The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial, and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

The Company assessed the content of this pronouncement and did not identify any impacts.

3.1.3 Amendments to IAS 1: Classification of liabilities as current or non-current and non-current liabilities with covenants

The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The definition of a change in accounting estimates was deleted. However, the Board retained the concept of changes in accounting estimates in the Standard through the following clarifications:

(i)A change in accounting estimates that results from new information or new developments does not constitute the correction of an error

(ii)The effects of a change in an input or a measurement technique used to develop an accounting estimate represent changes in accounting estimates if they do not result from the correction of prior period errors

The Company assessed the content of this pronouncement and did not identify any impacts.



12



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4 FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT

4.1 Financial risks management

4.1.1 Overview

In the six-month period ended June 30, 2024, there were no significant changes in the financial risk management policies and procedures compared to those disclosed in the annual financial statements for the year ended December 31, 2023 (Note 4).

The Company maintained its conservative approach and strong cash and marketable securities position, as well as its hedging policy.

4.1.2 Classification

All transactions with financial instruments are recognized for accounting purposes and classified in the following categories:


	Note	06/30/2024	12/31/2023
Assets
Amortized cost
Cash and cash equivalents	5	7,246,498	8,345,871
Trade accounts receivable	7	7,224,926	6,848,454

Other assets (1)		670,095	737,222
		15,141,519	15,931,547
Fair value through other comprehensive income
Investments	14.1	31,364	23,606
		31,364	23,606
Fair value through profit or loss
Derivative financial instruments	4.5.1	3,884,621	4,430,454
Marketable securities	6	14,815,013	13,267,286
		18,699,634	17,697,740
		33,872,517	33,652,893
Liabilities
Amortized cost
Trade accounts payable	17	5,058,959	5,572,219
Loans, financing and debentures	18.1	88,624,374	77,172,692
Lease liabilities	19.2	6,604,352	6,243,782
Liabilities for assets acquisitions and subsidiaries	23	211,226	187,187
Dividends and interests on own capital payable		3,010	1,316,528
Other liabilities (1)		481,507	116,716
		100,983,428	90,609,124
Fair value through profit or loss
Derivative financial instruments	4.5.1	5,732,329	2,436,072
		5,732,329	2,436,072
		106,715,757	93,045,196
		72,843,240	59,392,303

(1)Does not include items not classified as financial instruments.



13



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.1.3 Fair value of loans and financing

The estimated fair values of loans and financing are set forth below:


	Yield used to discount/methodology	06/30/2024	12/31/2023
Quoted in the secondary market
In foreign currency
Bonds	Secondary Market	43,616,964	38,703,379
Estimated present value
In foreign currency
Export credits (“Prepayment”)	SOFR	17,671,131	17,783,760
Assets Financing	SOFR	379,014	278,107
ECA - Export Credit Agency	SOFR	691,611
IFC - International Finance Corporation	SOFR	3,165,736	3,198,761

In local currency
BNDES – TJLP	DI 1	175,745	215,458
BNDES – TLP	DI 1	2,285,041	2,712,762
BNDES – Fixed	DI 1	1,757	3,903
BNDES – Selic (“Special Settlement and Custody System”)	DI 1	604,215	686,798
Assets Financing	DI 1	62,955	75,622
Debentures	DI 1/IPCA	10,659,539	8,881,277
NCE (“Export Credit Notes”)	DI 1	95,229	110,396
NCR (“Rural Credit Notes”)	DI 1	2,141,198	2,228,806
Export credits (“Prepayment”)	DI 1	823,967	824,035
		82,374,102	75,703,064

The book values of loans and financing are disclosed in Note 18.

Management considers that, for its other financial assets and liabilities measured at amortized cost, their book values approximate their fair values, and therefore the fair value information is not being presented.

4.2 Liquidity risk management

The Company’s purpose is to maintain a strong cash and marketable securities position to meet its financial and operating commitments. The amount held in cash is intended to cover the expected outflows in the normal course of its operations, while the cash surplus is generally invested in highly liquid financial investments according to the Cash Management Policy.

The cash position is monitored by the Company’s Management, by means of management reports and participation in performance meetings with determined frequencies. During the six-month period ended June 30, 2024, the variations in cash and marketable securities were as expected, and the cash generated from operations was mostly used for investments and debt service.

All derivative financial instruments were traded over the counter and do not require deposit guarantee margins.

The remaining contractual maturities of financial liabilities are presented as of the balance sheet date. The amounts as set forth below consist of undiscounted cash flow, and include interest payments and exchange rate variations, and therefore may not reconcile with the amounts disclosed in the balance sheet.



14



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024


						06/30/2024
	Book value	Undiscounted cash flow	Up to 1 year	1 - 2 years	2 - 5 years	More than 5 years
Liabilities
Trade accounts payables	5,058,959	5,058,959	5,058,959
Loans, financing and debentures	88,624,374	118,976,266	13,708,238	8,967,446	42,773,201	53,527,381
Lease liabilities	6,604,352	11,631,398	1,230,619	1,113,432	2,930,245	6,357,102
Liabilities for asset acquisitions and subsidiaries	211,226	210,946	91,922	18,624	85,035	15,365
Derivative financial instruments	5,732,329	6,887,436	615,555	191,218	674,980	5,405,683
Dividends and interests on own capital payable	3,010	3,010	3,010
Other liabilities	481,507	481,507	422,471	59,036
	106,715,757	143,249,522	21,130,774	10,349,756	46,463,461	65,305,531


						12/31/2023
	Book value	Undiscounted cash flow	Up to 1 year	1 - 2 years	2 - 5 years	More than 5 years
Liabilities
Trade accounts payables	5,572,219	5,572,219	5,572,219
Loans, financing and debentures	77,172,692	105,526,852	7,648,237	12,983,542	31,355,362	53,539,711
Lease liabilities	6,243,782	11,021,519	1,172,568	1,045,795	2,743,793	6,059,363
Liabilities for asset acquisitions and subsidiaries	187,187	215,891	94,948	18,314	87,520	15,109
Derivative financial instruments	2,436,072	2,801,258	66,433	1,278,953	1,191,014	264,858
Dividends and interests on own capital payable	1,316,528	1,316,528	1,316,528
Other liabilities	116,716	116,716	58,955	57,761
	93,045,196	126,570,983	15,929,888	15,384,365	35,377,689	59,879,041

4.3 Credit risk management

In the six-month period ended June 30, 2024, there were no significant changes in the credit risk management policies compared to those disclosed in the annual financial statements for the year ended of December 31, 2023 (Note 4).

4.4 Market risk management

In the six-month period ended June 30, 2024, there were no significant changes in the market risk management policies and procedures compared to those disclosed in the annual financial statements for the year ended December 31, 2023 (Note 4).



15



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.4.1 Exchange rate risk management

As disclosed in the financial statements for the year ended December 31, 2023 (Note 4), the Company enters into US$ selling transactions in the futures markets, including strategies involving options, to ensure attractive levels of operating margins for a portion of revenue. Such transactions are limited to a percentage of the net surplus foreign currency over a 24-months’ time horizon and therefore, are matched to the availability of currency for sale in the short term. The Company's Board of Directors approved the contracting of extraordinary hedge, in addition to the strategy mentioned above, for investments in the Cerrado Project, with a term of up to 36 months as of November 2021, in an amount of up to US$1,000,000. On July 27, 2022, the Board of Directors approved the expansion of the program, increasing the maximum amount (notional) to US$1,500,000, maintaining the previously established deadline. In order to provide transparency on the hedge program for the Cerrado Project, since December 31, 2021 the Company has started to prominently disclose the respective contracted operations.

The assets and liabilities that are exposed to foreign currency, substantially in US$, are set forth below:


	06/30/2024	12/31/2023
Assets
Cash and cash equivalents	5,149,219	6,432,557
Marketable securities	2,811,914	7,378,277
Trade accounts receivable	5,393,033	5,049,609
Derivative financial instruments	3,041,184	3,070,594
	16,395,350	21,931,037
Liabilities
Trade accounts payable	(1,200,975)	(1,625,011)
Loans and financing	(71,901,265)	(61,304,673)
Liabilities for asset acquisitions and subsidiaries	(150,121)	(127,598)
Derivative financial instruments	(4,980,878)	(1,867,882)
	(78,233,239)	(64,925,164)
	(61,837,889)	(42,994,127)

4.4.1.1 Sensitivity analysis – foreign exchange rate exposure – except for derivative financial instruments

For market risk analysis, the Company uses scenarios to evaluate both its asset and liability positions in foreign currency, and the possible effects on its results. The probable scenario represents the amounts recognized, as they reflect the conversion into Brazilian Reais on the balance sheet date (R$ to US$ = R$5.5589).

This analysis assumes that all other variables, particularly interest rates, remain constant. The other scenarios considered the depreciation of the Brazilian Real against the US$ at the rates of 25% and 50% before taxes.



16



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The following table set forth the potential impacts at their absolute amounts:


	06/30/2024
	Effect on profit or loss
	Probable (base value)	Possible (25%)	Remote (50%)
Cash and cash equivalents	5,149,219	1,287,305	2,574,610
Marketable securities	2,811,914	702,979	1,405,957
Trade accounts receivable	5,393,033	1,348,258	2,696,517
Trade accounts payable	(1,200,975)	(300,244)	(600,488)
Loans and financing	(71,901,265)	(17,975,316)	(35,950,633)
Liabilities for asset acquisitions and subsidiaries	(150,121)	(37,530)	(75,061)

4.4.1.2 Sensitivity analysis – foreign exchange rate exposure – derivative financial instruments

The Company has sales operations in US$ in the futures markets, including strategies using options, to ensure attractive levels of operating margins for a portion of its revenue. These operations are limited to a percentage of the total exposure to US$ over a 24-month horizon, or to investments in the Cerrado Project, according to the extraordinary hedge described above, and are therefore pegged to the availability of ready-to-sell foreign exchange in the short term.

In addition to the transaction described above, the Company also taken out derivative instruments linked to the US$ and subject to exchange fluctuations, seeking to adjust the debt's currency indexation to the cash generation currency, as provided for in its financial policies.

For the calculation of the mark-to-market (“MtM”) price, the exchange rate of the last business day of the period is used. These market movements caused a negative impact on the mark-to-market position entered into by the Company.

This analysis below assumes that all other variables, particularly the interest rates, remain constant. The other scenarios considered the depreciation of the Brazilian Real against the US$ by 25% and 50%, before taxes, based on the base scenario on June 30, 2024.



17



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The following table set out the possible impacts assuming these scenarios:


	06/30/2024
	Effect on profit or loss
	Probable (base value)	Possible 25%	Remote 50%
Dollar/Real
Derivative financial instruments
Derivative options	(1,333,266)	(6,410,594)	(14,619,086)
Derivative swaps	(589,917)	(2,262,706)	(4,443,068)
Derivative Non-Deliverable Forward (‘NDF’) Contracts	(77,902)	(318,622)	(671,020)
Embedded derivatives	66,945	(155,851)	(311,701)
NDF parity derivatives (1)	9,371	(154,754)	(273,597)
Commodity Derivatives	77,059	19,264	38,528

Dollar/Euro
Derivative financial instruments
NDF parity derivatives (1)	9,371	(93,190)	(192,420)

(1)Long positions at US$/EUR parity in order to protect the Capex cash flow of the Cerrado Project against the appreciation of the Euro.

4.4.2 Interest rate risk management

Fluctuations in interest rates could increase or reduce the costs of new loans and existing contracted operations.

The Company is constantly looking for alternatives for the use of financial instruments in order to avoid negative impacts on its cash flow due to fluctuations in interest rates in Brazil or abroad.

4.4.2.1 Sensitivity analysis – exposure to interest rates – except for derivative financial instruments

For its market risk analysis, the Company uses scenarios to evaluate the sensitivity of changes in operations impacted by the following rates: Interbank Deposit Rate (“CDI”), Long Term Interest Rate (“TJLP”), Special System for Settlement and Custody (“SELIC”) and SOFR, which could impact the results. The probable scenario represents the amounts already booked, as they reflect Management’s best estimates.

This analysis assumes that all other variables, particularly exchange rates, will remain constant. The other scenarios considered a depreciation of 25% and 50% in market interest rates.

The following table set forth the possible impacts assuming these scenarios in absolute amounts:


	06/30/2024
	Effect on profit or loss
	Probable	Possible (25%)	Remote (50%)
CDI/SELIC
Cash and cash equivalents	1,952,958	(50,777)	(101,554)
Marketable securities	11,208,299	(291,416)	(582,832)
Loans and financing	9,240,306	292,225	584,449
TJLP
Loans and financing	224,140	3,922	7,845
SOFR
Loans and financing	24,015,749	323,942	647,885



18



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.4.2.2 Sensitivity analysis – exposure to interest rates – derivative financial instruments

This analysis assumes that all other variables remain constant. The other scenarios considered a depreciation of 25% and 50% in market interest rates.

The following table sets out the possible impacts of these assumed scenarios:

06/30/2024

Effect on profit or loss

Probable

Probable 25%

Remote 50%

CDI

Derivative financial instruments

Liabilities

Derivative options

(1,333,266)

(662,127)

(1,317,419)

Derivative swaps

(589,917)

(80,807)

(158,606)

SOFR

Derivative financial instruments

Liabilities

Derivative swaps

(589,917)

(143,819)

(275,609)

4.4.2.3 Sensitivity analysis to changes in the consumer price indices of the US economy

For the measurement of the probable scenario, the United States Consumer Price Index (“US-CPI”) was considered on June 30, 2024. The probable scenario was extrapolated considering a depreciation of 25% and 50% in the US-CPI to define the possible and remote scenarios, respectively.

The following table sets out the possible impacts, assuming these scenarios in absolute amounts:

06/30/2024

Effect on profit or loss

Probable (base value)

Possible (25%)

Remote (50%)

Embedded derivative in a commitment to purchase standing wood, originating from a forest partnership agreement

66,945

(33,119)

(68,055)

4.4.3 Commodity price risk management

The Company is exposed to commodity prices, mainly in the selling price of pulp in the international market. The dynamics of rising and falling production capacities in the global market and macroeconomic conditions may impact the Company´s operating results.

Through a specialized team, the Company monitors hardwood pulp prices and analyses future trends, adjusting the forecasts aimed at assisting with preventive measures to calculate the different scenarios. There is no sufficiently liquid financial market to mitigate the risk of a material portion of the Company’s operations. Hardwood pulp price protection instruments available on the market have low liquidity and low volume, and high levels of distortion in price formation.



19



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The Company is also exposed to international oil prices, reflected in logistical costs for selling in the export market, and indirectly in the costs of other supply, logistics and service contracts. In such cases, the Company evaluates whether to contract derivative financial instruments to mitigate the risk of price variations in its results.

4.5 Derivative financial instruments

The Company determines the fair value of derivative contracts, which differ from the amounts realized in the event of early settlement due to bank spreads and market factors at the time of quotation. The amounts presented by the Company are based on an estimate using market factors and use data provided by third parties, measured internally and compared to calculations performed by external consultants and by counterparties.

Details of derivative financial instruments and their respective calculation methodologies are disclosed in the annual financial statements for the year ended December 31, 2023 (Note 4).

4.5.1 Outstanding derivatives by contract type, including embedded derivatives

The positions of outstanding derivatives are set forth below:


	Notional value, net in U.S.$		Fair value in R$
	06/30/2024	12/31/2023	06/30/2024	12/31/2023
Instruments as part of protection strategy
Operational hedges
Zero Cost Collar	6,547,200	4,500,200	(1,333,266)	1,968,337
NDF (R$ x US$)	357,500	505,000	(77,902)	162,776
NDF (€ x US$)	68,512	262,088	9,371	100,362

Debt hedges
Swap SOFR to Fixed (US$)	1,437,593	2,555,626	391,912	741,492
Swap IPCA to CDI (notional in Brazilian Reais)	5,078,782	4,274,397	(364,433)	47,645

Swap CDI x Fixed (US$)	909,612	1,025,000	(318,356)	(1,081,964)
Pre-fixed Swap to US$ (US$)		200,000		(203,045)
Swap CDI x SOFR (US$)	610,171	125,000	(277,115)	25,774
Swap SOFR to SOFR (US$)	150,961	150,961	(21,923)	(16,615)

Commodity Hedge
Swap US$ e US-CPI (1)	139,342	131,510	66,945	230,471
Zero Cost Collar (Brent)	121,865	163,100	30,535	(3,148)
Swap VLSFO/Brent	76,684	142,794	46,524	22,297
			(1,847,708)	1,994,382

Current assets			1,161,258	2,676,526
Non-current assets			2,723,363	1,753,928
Current liabilities			(469,544)	(578,763)
Non-current liabilities			(5,262,785)	(1,857,309)
			(1,847,708)	1,994,382

(1)The embedded derivative refers to a swap contract for the sale of price variations in US$ and US-CPI within the term of a forest partnership with a standing wood supply contract.



20



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The current contracts and the respective protected risks are set forth below:

(i)Swap CDI x Fixed US$: positions in conventional swaps exchanging the variation of the Interbank Deposit rate (“DI”) for a fixed rate in US$. The objective is to change the debt indexed in Brazilian Reais to US$, in compliance with the Company's natural exposure to US$ receivables.

(ii)Swap IPCA x CDI (notional in Brazilian Reais): positions in conventional swaps exchanging the variation of the Amplified Consumer Price Index (“IPCA”) for the DI rate. The objective is to change the debt indexed in reais, in compliance with the Company's cash position in Brazilian Reais, which is also indexed to DI.

(iii)Swap SOFR x Fixed US$: positions in conventional swaps exchanging a post-fixed rate (SOFR) for a fixed rate in US$. The objective is to protect the cash flow against changes in the US interest rate.

(iv)Pre-Fixed Swap R$ x Fixed US$: positions in conventional swaps of a fixed rate in Reais for a fixed rate in US$. The objective is to change the exposure of debts in Brazilian Reais to US$, in compliance with the Company's natural exposure to US$ receivables.

(v)SOFR x SOFR Swap: swap position exchanging a fixed rate added to SOFR for another fixed rate added to SOFR. The objective is to generate a fee discount for Prepayment with the banking institution, allowing for reversal mechanisms.

(vi)CDI x SOFR Swap: positions in conventional swaps exchanging the variation in the Interbank Deposit rate (“DI”) for a post-fixed rate (“SOFR”) US$. The objective is to change the debt index in reais to US$, aligning with the natural exposure of the Company's US$ receivables and capturing a lower cost of debt through the fluctuation of SOFR rate projections.

(vii)Zero Cost Collar: positions in an instrument that consists of the simultaneous combination of a purchase of put options and the sale of call options in US$, with the same principal amount and maturity, with the objective of protecting the cash flow of exports. Under this strategy, an interval is established where there is no deposit or receipt of financial margin at the option maturity. The objective is to protect the cash flow of exports against the depreciation of the Brazilian Real.

(viii)Non-Deliverable Forward contracts (“NDF”): short positions in US$ futures contracts with the objective of protecting the cash flow from exports against the depreciation of the Brazilian Real.

(ix)Swap US-CPI: The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract.

(x)Non-Deliverable Forward contracts: EUR and US$: call positions at EUR/US$ parity to protect the Capex cash flow of the Cerrado project against the appreciation of the Euro.

(xi)Swap Very Low Sulphur Fuel Oil / Brent (“VLSFO”): Long positions in oil, aimed at hedging logistical costs related to maritime freight contracts against the increase in oil prices.

(xii)Zero Cost Collar (Brent): positions in an instrument that consists of the simultaneous combination of buying call options and selling put options for oil - Brent, with the same principal value and maturity, with the objective of protecting input costs of oil derivatives. In this strategy, an interval is established where there is no deposit or receipt of financial margin at the expiration of the options. The objective is to protect costs against rising oil prices.

The variation in the fair values of derivatives on June 30, 2024 compared to the fair values measured on December 31, 2023 are explained substantially by the depreciation of the Brazilian Real against the US$ and by settlements during the period. There were also impacts caused by the variations in the Pre Fixed, Foreign Exchange Coupon and SOFR curves in the operations.

It is important to highlight that the outstanding agreements on June 30, 2024 are over-the-counter market operations, without any type of collateral margin or forced early settlement clause due to variations from market marking.



21



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.5.2 Fair Value Maturity Schedule


	06/30/2024	12/31/2023
2024	471,913	2,097,763
2025	(230,840)	233,072
2026	(379,675)	(574,871)
2027 onwards	(1,709,106)	238,418
	(1,847,708)	1,994,382

4.5.3 Outstanding assets and liabilities derivatives positions

The outstanding derivatives positions are set forth below:


		Notional value		Fair value
	Currency	06/30/2024	12/31/2023	06/30/2024	12/31/2023
Debt hedges
Assets
Swap CDI to Fixed	US$	4,748,394	3,898,011	1,618,434	223,776
Swap Pre-Fixed to US$	US$		738,800
Swap SOFR to Fixed	US$	1,437,593	2,555,626	430,489	1,104,984
Swap IPCA to CDI	R$	5,229,379	4,320,471	308,989	161,542

Swap CDI to SOFR	US$	3,117,625	644,850	679,637	32,560
Swap SOFR to SOFR	US$	150,961	150,961	6,717	6,681
				3,044,266	1,529,543
Liabilities
Swap CDI to Fixed	US$	909,612	1,025,000	(1,936,790)	(1,305,740)
Swap Pre-Fixed to US$	US$		200,000		(203,045)
Swap SOFR to Fixed	US$	1,437,593	2,555,626	(38,577)	(363,492)
Swap IPCA to CDI	R$	5,078,782	4,274,397	(673,422)	(113,897)

Swap CDI to SOFR	US$	610,171	125,000	(956,752)	(6,786)
Swap SOFR to SOFR	US$	150,961	150,961	(28,640)	(23,296)
				(3,634,181)	(2,016,256)
				(589,915)	(486,713)
Operational hedge
Zero Cost Collar (US$ x R$)	US$	6,547,200	4,500,200	(1,333,266)	1,968,337
NDF (R$ x US$)	US$	357,500	505,000	(77,902)	162,776
NDF (€ x US$)	US$	68,512	262,088	9,371	100,362
				(1,401,797)	2,231,475
Commodity hedge
Swap US-CPI (standing wood) (1)	US$	139,342	131,510	66,945	230,471
Zero Cost Collar (Brent)	US$	121,865	163,100	30,535	(3,148)
Swap VLSFO/Brent	US$	76,684	142,794	46,524	22,297
				144,004	249,620
				(1,847,708)	1,994,382

(1)The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract.



22



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.5.4 Fair value settled amounts

The settled derivatives positions are set forth below:


	06/30/2024	12/31/2023
Operational hedge
Zero Cost Collar (R$ x US$)	580,961	2,987,953
NDF (R$ x US$)	39,368	155,458
NDF (€ x US$)	57,391	84,332
	677,720	3,227,743

Commodity hedge	63,904	80,516
Swap VLSFO/other	63,904	80,516

Debt hedge
Swap CDI to Fixed (US$)	(1,562,218)	(438,417)
Swap IPCA to CDI (Brazilian Reais)	(14,722)	256,683
Swap IPCA to Fixed (US$)		21,139
Swap Pre-Fixed to US$	(221,462)	(104,827)
Swap SOFR to SOFR	800
Swap CDI to SOFR (US$)	(22,911)	7,729
Swap SOFR to Fixed (US$)	396,102	508,720
	(1,424,411)	251,027
	(682,787)	3,559,286



23



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.6 Fair value hierarchy

Financial instruments are measured at fair value, which considers the fair value as the price that would be received from selling an asset or paid to transfer a liability in an unforced transaction between market participants at the measurement date.

For the six-month period ended June 30, 2024, there were no changes between the 3 (three) levels of hierarchy and no transfers between levels 2 and 3.


			06/30/2024
	Level 2	Level 3	Total
Assets
At fair value through profit or loss
Derivative financial instruments	3,884,621		3,884,621
Marketable securities	14,815,013		14,815,013
	18,699,634		18,699,634
At fair value through other comprehensive income
Other investments		31,364	31,364
		31,364	31,364

Biological assets		19,801,748	19,801,748
		19,801,748	19,801,748
Total assets	18,699,634	19,833,112	38,532,746


Liabilities
At fair value through profit or loss
Derivative financial instruments	5,732,329		5,732,329
	5,732,329		5,732,329
	5,732,329		5,732,329


			12/31/2023
	Level 2	Level 3	Total
Assets
At fair value through profit or loss
Derivative financial instruments	4,430,454		4,430,454
Marketable securities	13,267,286		13,267,286
	17,697,740		17,697,740

At fair value through other comprehensive income
Other investments - CelluForce		23,606	23,606
		23,606	23,606

Biological assets		18,278,582	18,278,582
		18,278,582	18,278,582
Total assets	17,697,740	18,302,188	35,999,928

Liabilities
At fair value through profit or loss
Derivative financial instruments	2,436,072		2,436,072
	2,436,072		2,436,072
Total liabilities	2,436,072		2,436,072



24



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

4.7 Cybersecurity

Suzano has a Public Information Security Policy, which aims to establish guidelines regarding cyber security management and controls at Suzano, seeking to mitigate vulnerabilities, preserve and protect assets, mainly information and personal data, in accordance with current laws, regulations and contractual obligations, covering the confidentiality, integrity, availability, authenticity and legality of information. The Policy establishes responsibilities to avoid damages, which may represent financial impacts, image and reputation, exposure of information, interruption of operations, among other damages due to cyber-attacks.

For the six-month period ended June 30, 2024, no material incidents associated with cybersecurity were identified that could affect the confidentiality, integrity and/or availability of the systems used by the Company.

4.8 Climate change

In the annual financial statements for the year ended December 31, 2023, the risks and opportunities information linked to climate change and the sustainability strategy were disclosed, which did not change significant during the six-month period ended June 30, 2024.

4.8.1 Disaster in the State of Rio Grande do Sul, Brazil

In the last week of April 2024, Rio Grande do Sul suffered from large-scale flooding after storms that devastated the state, with unprecedented elevations in the Guaíba River basins in Porto Alegre, and Lagoa dos Patos in Pelotas and Rio Grande, which also overflowed, flooding hundreds of cities in the state.

The Company has a distribution center in the city of Cachoeirinha, metropolitan region of Porto Alegre, however, it was not directly impacted by the floods and the indirect impacts are not material.

4.9 Capital management

The main objective is to strengthen the Company’s capital structure, aiming to maintain an appropriate level of financial leverage while mitigating risks that could affect the availability of capital for business development.

The Company continuously monitors significant indicators, such as consolidated financial leverage, which is the ratio of total net debt to adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”).

5 CASH AND CASH EQUIVALENTS


	Average yield p.a. %		06/30/2024	12/31/2023
Cash and banks (1)	5.26%		5,293,540	6,561,558

Cash equivalents
Local currency
Fixed-term deposits (compromised)	102.30	% of CDI	1,952,958	1,784,313



			7,246,498	8,345,871

(1)Refers mainly to investments in foreign currency under the Sweep Account modality, which is a remunerated account the balance of which is invested and made available automatically each day.



25



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

6 MARKETABLE SECURITIES


	Average yield p.a. %	06/30/2024	12/31/2023
In local currency
Private funds	109.95% of CDI	1,372,479	1,295,296
Public Securities (1)	IPCA + 5.90%	794,800
Private Securities ("CDBs")	101.97% of CDI	9,381,743	4,150,313
CDBs - Escrow Account (2)	101.57% of CDI	454,077	443,400
		12,003,099	5,889,009
Foreign currency
Time deposits (3)	6.71%	2,747,563	7,333,308
Other		64,351	44,969
		2,811,914	7,378,277
		14,815,013	13,267,286

Current		14,360,936	12,823,886
Non-Current		454,077	443,400

(1)Acquisition of Brazil National Treasury Notes indexed to IPCA (NTN-B).

(2)Includes escrow accounts, which will be released only after obtaining the applicable governmental approvals, and pending compliance by the Company with the conditions precedent in transactions involving the sale of rural properties.

(3)Refers to Time Deposit investments, with maturities over 90 days, which are remunerated bank deposits with specific maturity periods.



26



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

7 TRADE ACCOUNTS RECEIVABLE

7.1 Breakdown of balances


	06/30/2024	12/31/2023
Domestic customers
Third parties	1,787,948	1,785,157
Related parties (Note 11.1) (1)	73,977	45,650

Foreign customers
Third parties	5,393,033	5,049,609
Related parties (Note 11.1)	315

(-) Expected credit losses	(30,347)	(31,962)
	7,224,926	6,848,454

(1)The balance refers to transactions with Ibema Companhia Brasileira de Papel.

The Company carries out factoring transactions for certain customer receivables where transfers the control and all risks and rewards related to these receivables to the counterparty, so these receivables are derecognized from accounts receivable in the balance sheet. This transaction refers to an additional cash generation opportunity and is therefore classified as a financial asset measured at amortized cost. The impact of these factoring transactions on the accounts receivable as of June 30, 2024, was R$6,081,569 (R$4,273,623 as of December 31, 2023).

7.2 Breakdown of trade accounts receivable by maturity


	06/30/2024	12/31/2023
Current	6,150,528	5,904,402
Overdue
Up to 30 days	797,997	644,644
From 31 to 60 days	135,966	57,395
From 61 to 90 days	45,511	97,639
From 91 to 120 days	31,552	40,533
From 121 to 180 days	31,837	34,708
From 181 days	31,535	69,133
	7,224,926	6,848,454

7.3 Roll-forward of expected credit losses


	06/30/2024	12/31/2023
Opening balance	(31,962)	(21,109)
(Provisions)/Reversals, net	3	(35,202)

Write-offs	2,704	24,230
Exchange rate variations	(1,092)	119
Closing balance	(30,347)	(31,962)



27



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The Company maintains guarantees for overdue receivables as part of its commercial operations, through credit insurance policies, letters of credit and other guarantees. These guarantees avoid the need to recognize expected credit losses, in accordance with the Company's credit policy.

7.4 Main customers

On June 30, 2024 the Company doesn't have any customer responsible for more than 10% of the net sales of pulp operating segment and no main customers in the paper operating segment. On December 31, 2023 the Company had 1 (one) customer responsible for 10.27% of the net sales of pulp operating segment and no main customers in the paper operating segment.

8 INVENTORIES


	06/30/2024	12/31/2023
Finished goods
Pulp
Domestic (Brazil)	619,278	576,774
Foreign	1,548,559	1,271,335
Paper
Domestic (Brazil)	666,547	569,771
Foreign	135,721	137,653
Work in process	121,527	93,325
Raw materials
Wood	2,196,594	1,666,817
Operating supplies and packaging	904,625	795,274
Spare parts and other	1,005,012	931,052

(-) Expected credit losses	(71,183)	(95,053)
	7,126,680	5,946,948

8.1 Roll-forward of estimated losses


	06/30/2024	12/31/2023
Opening balance	(95,053)	(105,989)
Additions	(15,132)	(65,085)
Reversals	418	33,666
Write-offs	38,584	42,355
Closing balance	(71,183)	(95,053)

On June 30, 2024, and December 31, 2023, there were no inventory items pledged as collateral.



28



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

9 RECOVERABLE TAXES


	06/30/2024	12/31/2023
IRPJ/CSLL – prepayments and withheld taxes	482,318	464,188
PIS/COFINS – on acquisitions of property, plant and equipment (1)	124,603	93,866
PIS/COFINS – operations	740,609	699,717
PIS/COFINS – exclusions from ICMS (2)	435,676	443,210
ICMS – on acquisitions of property, plant and equipment (3)	425,342	432,793
ICMS – operations (4)	1,470,445	1,470,949
Reintegra program (5)	78,442	64,077
Other taxes and contributions	57,855	45,821
Provision for loss on ICMS credits (6)	(1,430,988)	(1,452,435)
	2,384,302	2,262,186

Current	986,254	888,539
Non-current	1,398,048	1,373,647

(1)Social Integration Program (“PIS”) and Social Security Funding Contribution (“COFINS”): Credits whose realization is based on the years of depreciation of the corresponding asset.

(2)The Company and its subsidiaries filed lawsuits over the years seeking the exclusion of ICMS from the PIS and COFINS contribution tax basis, in relation to certain transactions during various periods from March 1992.

(3)Tax on Sales and Services (“ICMS”): Credits from the acquisition of property, plant and equipment are recovered on a straight-line basis over a four-year period, from the acquisition date, in accordance with the relevant regulation, the ICMS Control on Property, Plant and Equipment (“CIAP”).

(4)ICMS credits accrued due to the volume of exports and credit generated from product import transactions: Credits are concentrated in the States of Espírito Santo, Maranhão, Mato Grosso do Sul e São Paulo, where the Company realizes the credits through the sale of credits to third parties, after approval from the State Ministry of Finance of each State. Credits are also being realized through the consumption of consumer goods (tissue) transactions in the domestic market.

(5)Special Regime of Tax Refunds for Export Companies ("Reintegra"): Reintegra is a program that aims to refund the residual costs of taxes paid throughout the export chain to taxpayers, to make them more competitive in foreign markets.

(6)Related to provisions for ICMS credit balances that are not probable to be recovered.

9.1 Roll-forward of provision for loss


		ICMS
	06/30/2024	12/31/2023
Opening balance	(1,452,435)	(1,103,807)
Addition (1)	(94,008)	(399,838)
Write-off		51,210
Reversal (2)	115,455
Closing balance	(1,430,988)	(1,452,435)

(1)Refers, substantially, to the accumulated ICMS credits of the state of Mato Grosso do Sul, arising from the construction operations of the Cerrado Project, and of the state of Espirito Santo, of the accumulated credits due to the volume of exports.

(2)Refers mainly to the reversal of the provision for loss resulting from the recovery of ICMS credits from the State of Espírito Santo through sale to third parties.



29



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

10 ADVANCES TO SUPPLIERS


	06/30/2024	12/31/2023
Forestry development program and partnerships	2,412,921	2,242,229
Advance to suppliers - others	127,180	113,743
	2,540,101	2,355,972

Current	127,180	113,743
Non-current	2,412,921	2,242,229

In the annual financial statements for the year ended December 31, 2023, the characteristics of the advances were disclosed, which did not change during the six-month period ended June 30, 2024.

11 RELATED PARTIES

The Company's commercial and financial transactions with the controlling shareholder and Companies owned by the controlling shareholder Suzano Holding S.A. ("Suzano Group") were carried out at specific prices and conditions, as well as the corporate governance practices adopted by the Company, and those recommended and/or required by the applicable legislation.

The transactions refers mainly to:

Assets: (i) accounts receivable from the sale of pulp, paper, tissue and other products; (ii) dividends receivable; (iii) reimbursement for expenses; and (iv) social services;

Liabilities: (i) loan agreements;(ii) reimbursement for expenses; (iii) social services; (iv) real estate consulting; and (v) dividends payable.

Amounts in the statements of income: (i) sale of pulp, paper, tissue and other products; (ii) loan charges and exchange variation; (iii) social services and (viii) real estate consulting.

For the six-month period ended June 30, 2024, there were no material changes in the terms of the agreements, deals and transactions entered into, nor were there any new contracts, agreements or transactions of any different nature entered into between the Company and its related parties.



30



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

11.1 Balances recognized in assets and liabilities and amounts of transactions during the period


	Assets		Liabilities		Financial result, net		Sales (purchases), net
	06/30/2024	12/31/2023	06/30/2024	12/31/2023	06/30/2024	06/30/2023	06/30/2024	06/30/2023
Transactions with majority shareholders
Suzano Holding S.A. (1)	6	24		(363,520)			22	22
Controller (1)				(193,883)
Management and related persons (1)				(31,748)
Alden Fundo de Investimento em Ações (1)				(30,428)
	6	24		(619,579)			22	22

Transactions with companies of the Suzano Group and other related parties
Management (expect compensation – Note 11.2)	91	61					290	(810)
Bexma Participações Ltda							3	4
Naman Capital Ltda	2						4	3
Civelec Participações Ltda	3,860	4,575			28			4,825
Fundação Arymax	2						3	1
Ibema Companhia Brasileira de Papel (2)	73,977	45,659	(5,802)	(1,023)			87,768	108,105
Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável	1	2	(8)				(2,837)	(3,959)
IPLF Holding S.A.							2	2
Mabex Representações e Participações Ltda.							(629)
Nemonorte Imóveis e Participações Ltda							(74)	(88)
Woodspin Oy	334				19		427
	78,267	50,297	(5,810)	(1,023)	47		84,957	108,083
	78,273	50,321	(5,810)	(620,602)	47		84,979	108,105

Assets
Trade accounts receivable (Note 7)	74,292	45,650
Other assets	3,981	4,671
Liabilities
Trade accounts payable (Note 17)			(5,810)	(1,023)
Dividends and interest on own capital payable				(619,579)
	78,273	50,321	(5,810)	(620,602)

(1)Refers to dividends and interest on own capital payable.

(2)Refers mainly to the sale of pulp.



31



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

11.2 Management compensation

Expenses related to the compensation of key management personnel, which include the Board of Directors, Fiscal Council and Board of Statutory Executive Officers, recognized in the statement of income for the period, are set out below:


	06/30/2024	06/30/2023
Short-term benefits
Salary or compensation	27,234	23,822
Direct and indirect benefits	1,209	1,194
Bonus	6,962	4,724
	35,405	29,740
Long-term benefits
Share-based compensation plan	29,261	12,407
	29,261	12,407
	64,666	42,147

Short-term benefits include fixed compensation (salaries and fees, vacation pay, mandatory bonus and “13th month’s salary” bonus), payroll charges (Company’s share of contributions to social security – “INSS”) and variable compensation such as profit sharing, bonuses and benefits (company car, health plan, meal voucher, market voucher, life insurance and private pension plan).

Long-term benefits include the stock option plan and phantom shares for executives and key members of Management, in accordance with the specific regulations disclosed in Note 22.

12 INCOME AND SOCIAL CONTRIBUTION TAXES

The Company calculates income tax and social contribution taxes, current and deferred, based on the following rates: (i) 15% plus an additional 10% on taxable income in excess of R$240 for IRPJ; and (ii) 9% for CSLL, on the net income. Balances are recognized in the Company's income on an accruals basis.

Subsidiaries domiciled in Brazil have their taxes calculated and provisioned in accordance with the current legislation and their specific tax regime, including, in some cases, the presumed profit method. Subsidiaries domiciled abroad are subject to taxation in their respective jurisdictions, according to local regulations.

Deferred income and social contribution taxes are recognized at the net amounts in non-current assets or liabilities.

In Brazil, Law nº. 12,973/14 revoked article 74 of Provisional Measure nº. 2,158/01 and determines that the parcel of the adjustment of the value of the investment in subsidiaries, direct and indirect, domiciled abroad, equivalent to the profit earned by them before income tax, except for exchange rate variation, must be added in the determination of taxable income and the social contribution calculation basis of the controlling entity domiciled in Brazil, at each year ended.



32



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

The Company management believes in the validity of the provisions of international treaties entered by Brazil to avoid double taxation. In order to ensure its right to non-double taxation, the Company filed a lawsuit in April 2019, which aims to exempt the double taxation in Brazil, of profits earned by its subsidiary located in Austria, according to Law No. 12,973/14. Due to the preliminary injunction granted in favor of the Company in the aforementioned lawsuit, the Company decided not to add the profit from Suzano International Trading GmbH, located in Austria, when determining its taxable income and social contribution basis of the net profit of the Company for the six-month period ended June 30, 2024. There is no provision for tax related to the non-double taxation profits of such subsidiary in 2024. For the six-month period ended June 30, 2024, there were no changes on the disclosure about uncertain tax positions for income tax and social contribution (IFRIC 23), which were disclosed in the annual financial statements of December 31, 2023.

12.1 Deferred taxes

12.1.1 Deferred income and social contribution taxes


	06/30/2024	12/31/2023
Tax loss	1,086,797	1,209,968
Negative tax basis of social contribution	416,088	457,030

Assets - temporary differences
Provision for judicial liabilities	331,519	324,158
Operating provisions and other losses	1,129,889	1,214,807
Exchange rate variations	5,233,284	2,384,153
Derivatives losses (“MtM”)	628,221
Amortization of fair value adjustments arising from business combinations	633,847	654,358
Unrealized profit on inventories	453,809	151,578
Leases	491,931	356,110
	10,405,385	6,752,162

Liabilities - temporary differences
Goodwill - tax benefit on unamortized goodwill	1,445,770	1,301,654
Property, plant and equipment - deemed cost	1,103,321	1,137,483
Depreciation for tax-incentive reason (1)	766,530	799,857
Capitalized loan costs	920,058	640,063
Fair value of biological assets	1,153,340	1,115,432
Deferred taxes, net of fair value adjustments	356,612	370,947
Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis)	148,130	150,691
Derivatives gains (“MtM”)		678,090
Provision of deferred taxes on results of subsidiaries abroad	81,381
Other temporary differences	24,438	24,109
	5,999,580	6,218,326

Non-current assets	4,418,401	545,213
Non-current liabilities	12,596	11,377

(1)Tax depreciation is taken as a benefit only in the income tax calculation bases.



33



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

12.1.2 Breakdown of accumulated tax losses and social contribution tax losses carried forward


	06/30/2024	12/31/2023
Tax loss carried forward	4,347,188	4,839,872
Negative tax basis of social contribution carried forward	4,623,200	5,078,111

12.1.3 Roll-forward of deferred tax assets


	06/30/2024	12/31/2023
Opening balance	533,836	3,985,297
Tax loss	(123,171)	2,872
Negative tax basis of social contribution	(40,942)	11,780
Provision for judicial liabilities	7,361	55,562
Operating provisions and other losses	(84,918)	215,779
Exchange rate variation	2,849,131	(1,913,350)
Derivative (gains) losses (“MtM”)	1,306,311	(668,926)
Amortization of fair value adjustments arising from business combinations	(6,176)	2,219
Unrealized profit on inventories	302,231	(211,474)
Leases	135,821	(8,728)
Goodwill - tax benefit on unamortized goodwill	(144,116)	(278,551)
Property, plant and equipment - deemed cost	34,162	79,866
Depreciation accelerated for tax-incentive reason	33,327	70,140
Capitalized loan costs	(279,995)	(429,229)
Fair value of biological assets	(37,908)	(412,158)
Deferred taxes on the results of subsidiaries abroad	(81,381)
Credits on exclusion of ICMS from the PIS/COFINS tax base	2,561	43,430
Other temporary differences	(329)	(10,693)
Closing balance	4,405,805	533,836



34



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

12.2 Reconciliation of the effects of income tax and social contribution on profit or loss


	06/30/2024		06/30/2023
Net income (loss) before taxes	(6,947,851)		14,380,751
Income tax and social contribution benefit (expense) at statutory nominal rate of 34%	2,362,269		(4,889,455)

Tax effect on permanent differences
Taxation (difference) on profit of associates in Brazil and abroad (1)	1,017,293		815,768
Equity method	(1,195)		143
Thin capitalization (2)			(27,114)
Credit related to Reintegra Program	4,807		3,694
Director bonuses	(9,347)		(3,481)
Tax incentives	26,912		41,769
Donations/Fines – Other	1,626		(1,659)
	3,402,366		(4,060,335)
Income tax
Current	(370,788)		(193,265)
Deferred	2,852,815		(2,830,430)
	2,482,027		(3,023,695)
Social Contribution
Current	(99,416)		(17,738)
Deferred	1,019,755		(1,018,902)
	920,339		(1,036,640)
Income and social contribution benefits (expenses) on the period	3,402,366		(4,060,335)

Effective rate of income and social contribution tax expenses	48.97	%	28.23	%

(1)The difference in the taxation of subsidiaries is substantially due to the differences between the nominal tax rates in Brazil and those of subsidiaries located abroad.

(2)The Brazilian thin capitalization rules establish that interest paid or credited by a Brazilian entity to a related party abroad may only be deducted for income tax and social contribution purposes if the interest expense is viewed as necessary for the activities of the local entity, and when certain limits and requirements are met. On June 30, 2024, all limits and requirements were met, and on June 30, 2023, the Company did not meet all of the limits and requirements, and therefore the expense is not deductible for the period.

12.3 Tax incentives

The Company benefits from a tax incentive for partial reduction of the income tax obtained from operations carried out in areas under the jurisdiction of the Northeast Development Superintendence (“SUDENE”) and the Superintendence of Amazon Development (“SUDAM”). The IRPJ reduction incentive is calculated based on the activity profits (exploitation profits) and considers the allocation of the operating profit based on the incentive production levels for each product.

Area/Regions

Company

Maturity

Northeast Development Superintendence (“SUDENE”)

Eunápolis (BA)

Veracel

2025

Aracruz (ES)

Portocel

2030

Aracruz (ES)

Suzano

2031

Imperatriz (MA)

Suzano

2032

Mucuri (BA)

Suzano

2032

Superintendence of Amazon Development (“SUDAM”)

Belém (PA)

Suzano

2025



35



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

12.4 OECD PILLAR TWO MODEL RULES

In December 2021, the Organisation for Economic Co-operation and Development (“OECD”) announced the guidelines for the Pillar Two model, aiming for a reform in international corporate taxation to ensure that multinational economic groups, covered by such regulations, contribute an effective minimum tax at a rate of 15% on profits. Each country's effective profit tax rate, as calculated by this model, is called the GloBE (Global Anti-Base Erosion Rules) effective tax rate. These rules await approval in the local legislation of each country. In the context of Suzano, compliance with OECD guidelines on international taxation is a strategic priority.

Many countries have already released legislation or plans on the adoption of Pillar Two rules and the calculation of GloBE revenue, considering the global minimum rate of 15% for multinationals with consolidated revenue above EUR750 million.

The Company is monitoring the jurisdictions where the legislation was approved and is in force, as well as the progress of the legislative process in other countries, in order to map the potential effects on its operations.

From 2024, the Company is subject to OECD Pillar Two model rules in some European jurisdictions, with emphasis only on Austria. There was no material impact on this unaudited condensed consolidated interim financial information due to this topic.

13 BIOLOGICAL ASSETS

The roll-forward of biological assets is as set forth below:


	06/30/2024	12/31/2023
Opening balance	18,278,582	14,632,186
Additions	3,459,209	5,777,952
Depletions	(2,360,381)	(3,680,997)
Transfers	94,061	(136,297)
Gain on fair value adjustments	539,003	1,989,831
Disposals	(122,655)	(128,370)
Write-offs	(86,071)	(175,723)
Closing balance	19,801,748	18,278,582

The calculation of fair value of the biological assets falls under Level 3 in the hierarchy set forth in IFRS 13 — Measurement of Fair Value, due to the complexity and structure of the calculation.

In our model, the assumptions regarding the average annual growth rate (IMA), discount rate, and average gross selling price of eucalyptus are particularly sensitive. Any increase or decrease in these assumptions could lead to significant gains or losses in the fair value measurement.

The assumptions used in the measurement of the fair value of biological assets were as follow:

(i)Average cycle of forest formation between 6 and 7 years;

(ii)Effective area of forest from the 3rd year of planting;

(iii)The IMA consists of the estimated volume of production of wood with bark in m3 per hectare, ascertained based on the genetic material used in each region, silvicultural practices and forest management, production potential, climate factors and soil conditions;



36



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

(iv)The estimated average standard cost per hectare includes silvicultural and forest management expenses, applied to each year of formation of the biological cycle of the forests, plus the costs of land lease agreements and the opportunity cost of owning land;

(v)The average gross selling prices of eucalyptus were based on specialized research on transactions carried out by the Company with independent third parties; and

(vi)The discount rate corresponds to the average cost of capital and other economic assumptions for a market participant.

The table below discloses the measurement of the premises adopted:


	06/30/2024		12/31/2023
Planted useful area (hectare)	1,150,075		1,094,611
Mature assets	172,457		144,942
Immature assets	977,618		949,669
Average annual growth (IMA) – m3/hectare/year	39.11		37.92
Average gross sale price of eucalyptus – R$/m3	103.41		96.04
Discount rate (post-tax)	8.60	%	8.80	%

The pricing model considers the net cash flows, after the deduction of taxes on profit at the applicable rates.

The fair value adjustment justified by the combined variations of the indicators mentioned above resulted in a positive variation of R$539,003 recognized in other operating income (expenses), net (Note 29).


	06/30/2024	12/31/2023
Physical changes and discount rate (1)	258,678	1,575,017
Price	280,325	414,814
	539,003	1,989,831

1) Includes the variation of indicators: IMA, discount rate and area.

The Company manages the financial and climate risks related to its agricultural activities in a preventive manner. To reduce the risks arising from edaphoclimatic factors, the weather is monitored through meteorological stations and, in the event of pests and diseases, our Department of Forestry Research and Development, an area specialized in physiological and phytosanitary aspects, has procedures to diagnose and act rapidly against any occurrences and losses (Note 4.8).

The Company has no biological assets pledged as collateral on June 30, 2024 and December 31, 2023.



37



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

14 INVESTMENTS

14.1 Investments breakdown


	06/30/2024	12/31/2023

Investments in associates and joint ventures	396,487	355,520
Goodwill	228,887	228,887
Other investments evaluated at fair value through other comprehensive income	31,364	23,606
	656,738	608,013

Investments	656,738	608,013
	656,738	608,013

14.2 Investments in associates and joint ventures


Information of investees as at					Company Participation
			06/30/2024		Carrying amount		In the income (expenses) for the period
	Equity	Income (expenses) of the period	Participation equity (%)		06/30/2024	12/31/2023	06/30/2024	06/30/2023
Associate
Foreign
Ensyn Corporation	1,112	(663)	25.53	%	284	387	(170)	(4,304)
Spinnova Plc (1)	520,012	(10,088)	18.77	%	97,658	95,736	(9,065)	(6,706)
					97,942	96,123	(9,235)	(11,010)
Joint ventures
Domestic (Brazil)
Biomas	29,781	(12,923)	16.66	%	4,962	2,797	(2,001)	(175)
Ibema Companhia Brasileira de Papel	352,189	38,156	49.90	%	175,742	156,703	19,040	21,524
Foreign
F&E Technologies LLC	11,451		50.00	%	5,726	4,987
Woodspin Oy	224,231	(22,275)	50.00	%	112,115	94,910	(11,318)	(9,688)
					298,545	259,397	5,721	11,661

Other investments evaluated at fair value through other comprehensive income					31,364	23,606		(232)
					31,364	23,606		(232)
					427,851	379,126	(3,514)	419

(1)The average share price quoted on the Nasdaq First North Growth Market (NFNGM) was EUR1.60 on June 30, 2024 and EUR2.40 in December 31, 2023).



38



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

15 PROPERTY, PLANT AND EQUIPMENT


	Land	Buildings	Machinery, equipment and facilities	Work in progress	Other (1)	Total
Average rate %		3.63	6.77		19.02
Accumulated cost	14,486,408	9,644,875	45,160,365	10,373,151	1,281,328	80,946,127
Accumulated depreciation		(3,879,898)	(25,541,712)		(867,883)	(30,289,493)
Balance as of December 31, 2022	14,486,408	5,764,977	19,618,653	10,373,151	413,445	50,656,634
Additions	54,027	15	467,032	10,742,118	17,949	11,281,141
Additions of merged companies	4,572	111,495	453,617	8,306	11,175	589,165
Write-offs	(25,090)	(36,184)	(133,249)		(56,869)	(251,392)
Depreciation		(313,304)	(2,570,734)		(145,092)	(3,029,130)
Transfers and other	339,272	379,495	2,702,633	(3,638,466)	259,717	42,651
Accumulated cost	14,859,189	10,032,317	48,456,537	17,485,109	1,491,663	92,324,815
Accumulated depreciation		(4,125,823)	(27,918,585)		(991,338)	(33,035,746)
Balance as of December 31, 2023	14,859,189	5,906,494	20,537,952	17,485,109	500,325	59,289,069
Additions (2)	305	479	151,942	4,275,742	9,594	4,438,062

Write-offs	(1,222)	(1,484)	(81,013)		(4,570)	(88,289)
Depreciation		(165,807)	(1,371,981)		(91,091)	(1,628,879)
Transfers and other	52,037	165,882	767,318	(1,091,211)	121,805	15,831
Accumulated cost	14,910,309	10,179,228	49,062,051	20,669,640	1,594,824	96,416,052
Accumulated depreciation		(4,273,664)	(29,057,833)		(1,058,761)	(34,390,258)
Balance as of June 30, 2024	14,910,309	5,905,564	20,004,218	20,669,640	536,063	62,025,794

(1)Includes vehicles, furniture and utensils and computer equipment.

(2)The addition of work in progress refers, mainly to the Cerrado Project, of which R$587,112 is a cash effect in the previous periods.

On June 30, 2024, the Company evaluated the business, market and climate impacts, and did not identify any event that indicated the need to perform an impairment test and to record any impairment provision for property, plant and equipment.

15.1 Items pledged as collateral

On June 30, 2024, property, plant and equipment items pledged as collateral for loan transactions and legal proceedings, consisting mainly of the units of Três Lagoas and Imperatriz totalling R$17,119,831 (R$16,332,447 in the same units as at December 31, 2023).

15.2 Capitalized expenses

For the six-month period ended June 30, 2024, the Company capitalized loan costs in the amount of R$802,515 (R$1,160,364 as of December 31, 2023). The weighted average interest rate, adjusted by the equalization of the exchange rate effects, utilized to determine the capitalized amount was 10.55% p.a. (10.98% p.a. as of December 31, 2023).



39



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

16 INTANGIBLE

16.1 Goodwill and intangible assets with indefinite useful lives


	06/30/2024	12/31/2023
Goodwill - Facepa	119,332	119,332
Goodwill - Fibria	7,897,051	7,897,051
Goodwill - MMC Brasil (1)	170,859	170,859
Other (2)	4,834	4,834
	8,192,076	8,192,076

(1)Refers to the goodwill of the MMC Brasil business combination.

(2)Refers to other intangible assets with indefinite useful lives such as servitude of passage and electricity.

The goodwill is based on expected future profitability supported by valuation reports, after the purchase price allocation.

Goodwill is allocated to cash-generating units as presented in Note 28.4.

For the six-month period ended June 30, 2024, the Company did not identify any event that indicated the need to perform the impairment test and to record any impairment provision for intangible assets.

16.2 Intangible assets with limited useful lives


		06/30/2024	12/31/2023
Opening balance		6,557,009	7,173,183
Additions		84,566	104,931
Fair value adjustment MMC Brasil			189,655
Write-offs			(2)
Amortization		(499,814)	(990,432)
Transfers and others			79,674
Closing balance		6,141,761	6,557,009
Represented by	Average rate %
Non-competition agreements	5.00	4,661	4,818
Port concessions	4.30	524,708	537,179
Lease agreements	16.90	3,125	6,875
Supplier agreements	12.90	33,332	40,739
Port service contracts	4.20	535,139	549,821
Cultivars	14.30	30,588	40,784
Trademarks and patents	9.05	179,490	188,723
Customer portfolio	9.10	4,515,389	4,925,879
Supplier agreements	17.60	5,576	10,861
Software	20.00	164,336	141,178
Other	5.75	145,417	110,152
		6,141,761	6,557,009

Cost		12,463,304	12,378,761
Amortization		(6,321,543)	(5,821,752)
Closing balance		6,141,761	6,557,009



40



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

17 TRADE ACCOUNTS PAYABLE


	06/30/2024	12/31/2023
In local currency
Third party (1) (2)	3,852,174	3,946,185
Related party (Note 11.1) (3)	5,810	1,023
In foreign currency
Third party (2)	1,200,975	1,625,011
	5,058,959	5,572,219

(1)Within the balance of suppliers, there are values under supplier finance arrangement that were subject to anticipation with financial institutions at the exclusive option of certain suppliers, without changing the originally defined purchase conditions (payment terms and negotiated prices). The balance related to such operations on June 30, 2024 was R$338,953 (R$281,350 at December 31, 2023).

(2)Within the balance of suppliers, the following balances refer to the Cerrado Project, R$529,230 (R$523,408 on December 31, 2023) in local currency and R$487,093 (R$1,080,028 on December 31, 2023) in foreign currency.

(3)The balance refers mainly to transactions with Ibema Companhia Brasileira de Papel.

18 LOANS, FINANCING AND DEBENTURES

18.1 Breakdown by type


				Current		Non-current			Total
Type	Interest rate	Average annual interest rate - %		06/30/2024	12/31/2023	06/30/2024	12/31/2023	06/30/2024	12/31/2023
In foreign currency

Bonds	Fixed	5.0	%	2,823,963	841,625	44,218,728	40,122,749	47,042,691	40,964,374
Export credits (“export prepayments”)	SOFR/Fixed	6.3	%	3,601,807	2,690,891	16,812,138	14,487,252	20,413,945	17,178,143
Assets financing	SOFR	6.3	%	105,427	61,924	335,084	220,199	440,511	282,123
ECA - Export Credit Agency	SOFR	3.8	%	7,481		690,400		697,881
IFC - International Finance Corporation	SOFR	6.2	%		731	3,300,411	2,871,399	3,300,411	2,872,130
Others				5,826	7,903			5,826	7,903
				6,544,504	3,603,074	65,356,761	57,701,599	71,901,265	61,304,673
In local currency
BNDES	TJLP	8.6	%	73,413	49,348	149,771	199,988	223,184	249,336
BNDES	TLP	13.5	%	74,102	57,060	3,262,865	3,123,727	3,336,967	3,180,787
BNDES	Fixed	4.0	%	2,009	4,020			2,009	4,020
BNDES	SELIC	14.5	%	139,159	65,013	789,738	857,419	928,897	922,432

Assets financing	CDI	14.5	%	18,267	17,037	66,188	71,235	84,455	88,272
NCE (“Export credit notes”)	CDI	14.5	%	2,854	3,114	100,000	100,000	102,854	103,114
NCR (“Rural producer certificates”)	CDI	12.1	%	295,339	101,739	1,999,053	1,998,270	2,294,392	2,100,009
Export credits (“export prepayments”)	Fixed				791,306				791,306
Debentures	CDI/IPCA	13.4	%	100,575	66,536	9,649,776	8,362,207	9,750,351	8,428,743
				705,718	1,155,173	16,017,391	14,712,846	16,723,109	15,868,019
				7,250,222	4,758,247	81,374,152	72,414,445	88,624,374	77,172,692

Interest on financing				1,353,484	1,232,810			1,353,484	1,232,810
Non-current funding				5,896,738	3,525,437	81,374,152	72,414,445	87,270,890	75,939,882
				7,250,222	4,758,247	81,374,152	72,414,445	88,624,374	77,172,692



41



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

18.2 Breakdown by maturity – non-current


	2025	2026	2027	2028	2029	2030 onwards	Total
In foreign currency
Bonds	(9,343)	2,851,198	3,876,556	2,767,812	9,657,629	25,074,876	44,218,728
Export credits (“export prepayments”)	2,286,853	4,986,977	4,370,592	3,465,127	1,702,589		16,812,138
Assets financing	50,906	105,273	106,932	65,753	6,220		335,084
ECA - Export Credit Agency						690,400	690,400
IFC - International Finance Corporation			216,162	1,019,132	1,482,373	582,744	3,300,411
	2,328,416	7,943,448	8,570,242	7,317,824	12,848,811	26,348,020	65,356,761
In local currency
BNDES – TJLP	48,678	86,126	7,137	3,614	3,614	602	149,771
BNDES – TLP	38,596	97,462	158,271	155,438	141,276	2,671,822	3,262,865

BNDES – SELIC	121,619	243,271	31,988	32,034	32,079	328,747	789,738

Assets financing	9,233	18,741	19,113	19,033	68		66,188
NCE (“Export credit notes”)			25,000	25,000	25,000	25,000	100,000
NCR (“Rural producer certificates”)	(92)	(92)				1,999,237	1,999,053

Debentures				748,951		8,900,825	9,649,776
	218,034	445,508	241,509	984,070	202,037	13,926,233	16,017,391
	2,546,450	8,388,956	8,811,751	8,301,894	13,050,848	40,274,253	81,374,152

18.3 Roll-forward of loans, financing and debentures


	06/30/2024	12/31/2023
Opening balance	77,172,692	74,574,591
Fundraising, net of issuance costs	10,934,280	10,944,794
Interest accrued	2,545,932	4,797,094
Monetary and exchange rate variation, net	9,383,027	(4,185,675)
Settlement of principal	(8,921,182)	(4,296,447)
Settlement of interest	(2,529,991)	(4,728,998)
Amortization of fundraising costs	39,616	67,333

Closing balance	88,624,374	77,172,692

18.4 Breakdown by currency


	06/30/2024	12/31/2023
Brazilian Reais	16,723,109	15,868,019
US Dollars	71,901,265	61,304,673

	88,624,374	77,172,692



42



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

18.5 Fundraising costs

The fundraising costs are amortized based on the terms of agreements and the effective interest rate.


			Balance to be amortized
Type	Cost	Amortization	06/30/2024	12/31/2023
Bonds	434,970	263,645	171,325	164,825
NCE	125,222	123,051	2,171	2,696
Export credits (“export prepayments”)	219,946	150,074	69,872	52,162
Debentures	159,675	31,278	128,397	102,235
BNDES	63,588	54,522	9,066	9,854
ECA - Export Credit Agency	1,320	(3,969)	5,289
IFC - International Finance Corporation	41,943	179	41,764	38,911
Others	18,147	17,661	486	598
	1,064,811	636,441	428,370	371,281

18.6 Guarantees

Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment is offered as collateral by the Company, as disclosed in Note 15.1.

The Company does not have contracts with restrictive financial clauses (financial covenants) which must be complied with.

18.7 Relevant transactions entered into during the period

18.7.1 Export Prepayment

On February 15, 2024, the Company raised, with several banks (a syndicated operation), an export prepayment ("EPP") in the amount of US$780,000 (equivalent to R$3,897,036), at a floating rate based on SOFR + 1.65% p.a (increasing by 0.05% p.a until maturity), with final maturity in February 2029, as part of the rollover process of a partially settled EPP on the same date.

18.7.2 Rural Credit Note

On March 28, 2024, the Company raised, with Safra Bank, a Rural Credit Note in the amount of R$200,000, with a post-fixed interest rate of 100% of the CDI, with final maturity in March 2025.

18.7.3 Export Development Canada (“EDC”)

On April 30, 2024, the Company raised with from EDC in the amount of US$125,000 (equivalent to R$694,862) at a floating rate of SOFR + 1.74%, with final maturity in April 2031.

18.7.4 Debentures

On May 29, 2024, the Company issued simple, non-convertible debentures, unsecured, in three series, totaling R$5,900,000, as part of a debt rollover strategy. The debenture consists of three parts: (i) R$1,000,000 at a cost of CDI + 0.80% p.a., with a total term of eight years and equal amortizations in May 2031 and May 2032; (ii) R$4,000,000 at a cost of CDI + 1.00% p.a., with a total term of ten years and equal amortizations in May 2033 and May 2034; and (iii) R$900,000 (incentivized debenture) at a cost of IPCA + 6.11% p.a., with a total term of twelve years and equal amortizations in May 2035 and May 2036.



43



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

18.7.5 BNDES

On June 27, 2024, the Company raised with from BNDES in the amount of R$65,000, indexed by the Long-Term Interest Rate (TLP - 5.56% p.a.), plus fixed interest of 1.75% p.a., with a one-year principal grace period and final maturity in December 2043. The funds were allocated to industrial projects.

18.7.6 Advance of exchange contract (“ACC”)

On May 17, 2024, the Company rolled over an ACC of US$100,000 (equivalent to R$555,890), indexed at a fixed rate of 6% p.a. and originally maturing on May 17, 2024, to a new rate of 6.46% p.a. with a new maturity on May 19, 2025.

On June 5, 2024, the Company raised an ACC from BNP bank in the amount of US$15,000 (equivalent to R$83,383), indexed at a fixed rate of 6.43% p.a., with a maturity on June 9, 2025.

On June 21, 2024, the Company rolled over an ACC of US$35,000 (equivalent to R$194,561), indexed at a fixed rate of 6.52% p.a. and originally maturing on June 21, 2024, to a new rate of 6.54% p.a. with a new maturity on May 21, 2025.

18.8 Significant transactions settled during the period

On February 15, 2024, the Company partially settled, in advance, a pre-export facility with several banks (a syndicated operation), in the total amount of US$620,000 (equivalent to R$3,209,057). The residual amount of this operation maintained its original maturity in February 2026, with a floating rate based on SOFR + 1.41% p.a.

On June 7, 2024, the Company early settled a debenture with Bradesco bank in the total amount of R$4,926,631 (principal and interest) as part of a debt rollover strategy. The original maturity of the debenture was in June 2025 and June 2026, with an annual rate of 112.5% of CDI.

19 LEASES

19.1 Right of use

The balances rolled-forward are set out below:


	Lands	Machinery and equipment	Buildings	Ships and boats	Vehicles	Total
Balances at December 31, 2022	3,283,156	112,553	85,756	1,623,118	4,643	5,109,226
Additions/updates	496,236	206,847	101,124		9,702	813,909
Depreciation (1)	(386,436)	(134,587)	(59,448)	(124,890)	(2,346)	(707,707)
Write-offs (2)	(12,658)				(6,139)	(18,797)
Balances at December 31, 2023	3,380,298	184,813	127,432	1,498,228	5,860	5,196,631
Additions/updates	224,133	78,294	24,251		4	326,682
Depreciation (1)	(199,399)	(77,328)	(26,790)	(62,445)	(1,029)	(366,991)
Write-offs (2)	(2,860)					(2,860)
Balances at June 30, 2024	3,402,172	185,779	124,893	1,435,783	4,835	5,153,462

(1)The amount of depreciation related to land is substantially reclassified to biological assets to make up the formation costs.

(2)Write-off due to cancellation of contracts.

For the six-month period ended June 30, 2024, the Company does not have commitments to lease agreements not yet in force.



44



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

19.2 Lease liabilities

The balance of lease payables on June 30, 2024, measured at present value and discounted at the respective discount rates are set forth below:


Nature of agreement	Average rate - % p.a. (1)	Maturity (2)	Present value of liabilities
Lands and farms	12.27	December/2051	3,801,227
Machinery and equipment	11.19	April/2035	265,062
Buildings	10.75	September/2031	120,910
Ships and boats	11.25	February/2039	2,411,937
Vehicles	11.10	November/2028	5,216
			6,604,352

(1)To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements.

(2)Refers to the original maturities of the agreements and, therefore, does not consider eventual renewal clauses.

The balances rolled-forward are set out below:


	06/30/2024	12/31/2023
Opening balance	6,243,782	6,182,530
Additions	326,682	813,909
Write-offs (2)	(2,860)	(18,797)
Payments	(633,211)	(1,218,399)
Accrual of financial charges (1)	340,454	664,651
Exchange rate variations	329,505	(180,112)
Closing balance	6,604,352	6,243,782

Current	797,863	753,399
Non-current	5,806,489	5,490,383

(1)On June 30, 2024, the amount of R$118,269 related to interest expenses on leased lands was capitalized to biological assets to represent the formation cost (R$223,055 as of December 31, 2023).

(2)Write-off due to cancellation of contracts.

The maturity schedule for future payments not discounted to present value related to lease liabilities is disclosed in Note 4.2.

19.2.1 Amounts recognized in the statement of income for the period

The amounts recognized are set out below:


	06/30/2024	06/30/2023
Expenses relating to short-term assets	2,578	5,559
Expenses relating to low-value assets	1,376	946
	3,954	6,505



45



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

20 PROVISION FOR JUDICIAL LIABILITIES

The Company is involved in certain legal proceedings arising in the normal course of its business, which include tax, social security, labor, civil, environment and real estate.

The Company classifies the risk of unfavorable decisions in legal proceedings, based on legal advice, which reflects the estimated probable losses.

The Company’s Management believes that, based on the available information as of the date of these unaudited condensed consolidated interim financial information, its provisions for tax, social security, labor, civil, environment and real estate risks, accounted for according to IAS 37 are sufficient to cover estimated losses related to its legal proceedings, as set forth below:

20.1 Roll-forward and changes in the provisions for probable losses based on the nature of the proceedings, net of judicial deposits


					06/30/2024
	Tax and social security	Labor	Civil, environment and real estate	Contingent liabilities assumed (1) (2)	Total
Provision balance at the beginning of the period	468,839	349,058	139,435	2,155,545	3,112,877
Payments	(9,347)	(40,768)	(5,871)		(55,986)
Reversal		(35,232)		(6,013)	(41,245)
Additions	417	72,363	16,132		88,912
Monetary adjustment	12,805	10,672	682		24,159
Provision balance	472,714	356,093	150,378	2,149,532	3,128,717
Judicial deposits	(158,622)	(88,748)	(18,519)		(265,889)
Provision balance at the end of the period	314,092	267,345	131,859	2,149,532	2,862,828

(1)Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R$2,011,093 and civil lawsuits in the amount of R$138,439, measured and recorded at the estimated fair value resulting from the business combination with Fibria.

(2)Reversal due to a change in likelihood, cancellation and/or due to settlement.


					12/31/2023
	Tax and social security	Labor	Civil, environment and real estate	Contingent liabilities assumed (1) (2)	Total
Provision balance at the beginning of the year	419,915	255,805	118,729	2,645,705	3,440,154
Payments	(1,717)	(37,172)	(3,014)		(41,903)
Reversal	(18,035)	(101,375)	(11,337)	(490,160)	(620,907)
Additions	37,656	211,690	21,335		270,681
Monetary adjustment	31,020	20,110	13,722		64,852
Provision balance	468,839	349,058	139,435	2,155,545	3,112,877
Judicial deposits	(154,469)	(82,305)	(15,694)		(252,468)
Provision balance at the end of the year	314,370	266,753	123,741	2,155,545	2,860,409

(1)Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R$2,448,564 and civil lawsuits in the amount of R$197,141, measured and recorded at the estimated fair value resulting from the business combination with Fibria.

(2)Reversal due to a change in likelihood, cancellation and/or due to settlement.

20.1.1 Tax and social security

On June 30, 2024, the Company has 33 (32 as of December 31, 2023) administrative and judicial proceedings of a tax or social security nature in which the disputed matters are related to IRPJ, CSLL, PIS, COFINS, ICMS among others, whose amounts are provisioned when the likelihood of loss is deemed probable by the Company’s external legal counsel and by Management.



46



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

20.1.2 Labor

On June 30, 2024, the Company has 1,291 (1,241 as of December 31, 2023) labor lawsuits.

In general, the provisioned labor proceedings are related primarily to matters frequently contested by employees of agribusiness companies, such as wages and/or severance payments, in addition to suits filed by outsourced employees of the Company.

20.1.3 Civil, environment and real estate

On June 30, 2024, the Company has 92 (76 as at December 31, 2023) civil, environmental and real estate proceedings.

The provisioned Civil, environment and real estate proceedings are related primarily to the payment of damages, including those arising from contractual obligations, traffic-related injuries, possessory actions, environmental restoration obligations, claims and others.

20.2 Contingencies with possible losses

The Company is involved in tax, civil and labor lawsuits, whose losses have been assessed as possible by Management, supported by legal counsel, and therefore no provision was recorded:


	06/30/2024	12/31/2023
Taxes and social security (1)	9,964,395	9,775,068
Labor	169,165	194,883
Civil and environmental (1)	4,678,665	4,462,964
	14,812,225	14,432,915

(1)The amounts above do not include the fair value adjustments allocated to possible loss risk contingencies representing R$2,129,857 (R$2,135,869 as of December 31, 2023), which were recorded at fair value resulting from business combinations with Fibria, as presented in Note 20.1 above.

In the six-month period ended June 30, 2024, there were no significant changes in the main nature of these contingencies compared to those disclosed in the annual financial statements for the year ended December 31, 2023 (Note 20).

20.3 Contingent assets

21 EMPLOYEE BENEFIT PLANS

The Company provides supplementary pension plan and defined benefit plan, such as medical assistance and life insurance. The characteristics of such benefits were disclosed in the annual financial statements for the year ended December 31, 2023 (Note 21), which did not change during the six-month period ended June 30, 2024.

21.1 Pension plan

Contributions made by the Company, for Suzano Prev pension plan managed by Brasilprev Seguros e Previdência S.A., for the six-month period ended June 30, 2024 amounted R$10,562 (R$8,650 as of June 30, 2023) recognized under the cost of sales, selling and general and administrative expenses.



47



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

21.2 Defined benefits plan

The Company offers the medical assistance and life insurance in addition to the pension plans, which are measured based on actuarial calculations and recognized in the unaudited condensed consolidated interim financial information.

The roll-forward of actuarial liabilities prepared based on actuarial report is set forth below:


	06/30/2024	12/31/2023
Opening balance	833,683	691,424
Interest on actuarial liabilities	36,927	67,272
Current service cost	999	1,959
Actuarial loss – experience		57,765
Actuarial loss (gain) – financial assumptions		70,762
Benefits paid directly by entity	(26,347)	(55,499)
Closing balance	845,262	833,683

22 SHARE-BASED COMPENSATION PLAN

The Company has 3 (three) share-based, long-term compensation plans: (i) Phantom stock option plan (“PS”); (ii) Share Appreciation Rights (“SAR”), both settled in local currency; and (iii) restricted shares, settled in shares.

The characteristics and measurement method of each plan were disclosed in the annual financial statements for the year ended December 31, 2023 (Note 22), which did not change during the six-month period ended June 30, 2024.

22.1 Long term compensation plans (“PS and SAR”)

The roll-forward arrangements are set out below:


	Number of shares
	06/30/2024	12/31/2023
Opening balance	9,728,425	7,583,185
Granted during of the period	2,957,142	3,391,581
Exercised (1)	(1,332,211)	(871,208)
Exercised due to resignation (1)	(14,419)	(30,800)
Abandoned/cancelled due to resignation	(410,399)	(344,333)
Closing balance	10,928,538	9,728,425

(1)The average price of the share options exercised and exercised due to termination of employment on June 30, 2024 was R$59.28 (fifty-nine reais and twenty-eight cents) (R$58.07 (fifty-eight reais and seven cents) as at December 31, 2023).



48



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

22.2 Restricted shares plan

The position is set forth below:

Grant date

Fair value on grant date (1)

Shares granted

Restricted year for transfer of shares

01/02/2022

R$53.81

115,754

01/02/2025

01/02/2023

R$52.00

103,482

01/02/2026

01/02/2023

R$49.58

165,052

01/02/2026

01/02/2024

R$53.63

115,034

01/02/2027

01/02/2024

R$52.91

164,808

01/02/2027

04/25/2024

R$52.89

337,465

04/02/2025

04/25/2024

R$52.89

220,540

04/02/2026

04/25/2024

R$52.89

56,535

04/02/2027

05/13/2024

R$57.15

1,870,000

04/01/2029

3,148,670

(1)Amounts expressed in Reais.

In the six-month period ended June 30, 2024, the plan granted on January 2, 2021 had its lockup period concluded and, therefore, 114.244 shares were transferred to benefits. The balance of shares delivered was carried out in counterpart to treasury shares (Note 24.2).

22.3 Measurement assumptions

The amounts corresponding to the services received and recognized are set forth below:


	Liabilities and Equity		Statement of income and Equity
	06/30/2024	12/31/2023	06/30/2024	06/30/2023
Non-current liabilities
Provision for phantom stock plan	291,166	268,489	(91,292)	(32,731)
Equity
Stock options granted	39,121	26,744	(12,377)	(4,159)
Shares granted	(4,877)		4,877
	34,244	26,744	(7,500)	(4,159)
			(98,792)	(36,890)

23 LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES


	06/30/2024	12/31/2023



Business combinations
Facepa (1)	26,655	25,924
Vale Florestar Fundo de Investimento em Participações ("VFFIP") (2)	184,571	161,263

	211,226	187,187

Current	103,488	93,405
Non-current	107,738	93,782

(1)Acquired in March 2018, for the amount of R$307,876, upon the payment of R$267,876, with the remainder updated at the IPCA, adjusted for possible losses incurred up to the payment date, with maturity in March 2028.

(2)On August 2014, the Company acquired Vale Florestar S.A. through VFFIP, for a total amount of R$528,941 upon the payment of R$44,998, and the remainder with maturity up to August 2029. The annual settlements, carried out in the month of August, are subject to interest and updated by the variations of the US$ exchange rate, and partially updated by the IPCA.



49



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

24 SHAREHOLDERS’ EQUITY

24.1 Share capital

On June 30, 2024, Suzano’s share capital was R$19,269,281 divided into 1,304,117,615 common shares, all nominative, book-entry shares without par value. Expenses related to the public offering were R$33,735, totaling a net share capital of R$19,235,546. The breakdown of the share capital is as set out below:


	06/30/2024		12/31/2023
	Quantity	(%)	Quantity	(%)
Controlling Shareholders
Suzano Holding S.A.	367,612,329	28.19	367,612,329	27.76
Controller	196,065,636	15.03	196,065,636	14.81
Managements and related persons	32,565,566	2.50	32,105,783	2.42
Alden Fundo de Investimento em Ações	26,154,744	2.01	26,154,744	1.98
	622,398,275	47.73	621,938,492	46.97
Treasury (Note 24.2)	27,085,856	2.07	34,765,600	2.63
Other shareholders	654,633,484	50.20	667,413,523	50.40
	1,304,117,615	100.00	1,324,117,615	100.00

For the six-month period ended June 30, 2024, SUZB3 common shares ended the period quoted at R$57.01 and R$55.63 on December 31, 2023.

On April 25, 2024, the Annual and Extraordinary Shareholders' Meeting approved the capitalization of part of the balance of the Capital Increase Reserve, pursuant to article 199 of the Brazilian Corporation Law, in an amount equivalent to R$ 10,000,000 in view of the possibility that the balance of the profit reserves exceeds the capital stock. As of June 30, 2024, the net capital stock is R$ 19,235,546.

24.2 Treasury shares

On June 30, 2024, the Company had 27,085,856 (34,765,600 as of December 31, 2023) of its own common shares held in treasury, with an average cost of R$48.17 per share, with a historical value of R$1,304,843 (R$1,484,014 as at December 31, 2023) and the market corresponding to R$1,544,165 (R$1,934,010 as at December 31, 2023).

On January 26, 2024, 20,000,000 common shares held in treasury were cancelled, as described in Note 1.2.3).

From the approval of the program until June 30, 2024, the company acquired 12,434,500 shares, with a historical value of R$54.64 and corresponding to R$679,431. The Program may repurchase up to a maximum of 40,000,000 common shares and the term will end on July 26, 2025.



50



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

On June 30, 2024, the Company granted 114,244 common shares at an average cost of R$42.69 per share, with a historical value of R$4,877, to comply with the 2021 Program of the restricted shares plan (Note 22.2).


	Quantity	Average cost per share	Historical value	Market value
Balances at December 31, 2022	51,911,569	40.84	2,120,324	2,504,214
Repurchase	20,000,000	44.05	880,914	880,914
Canceled	(37,145,969)	40.84	(1,517,224)	(1,570,532)
Balances at December 31, 2023	34,765,600	42.69	1,484,014	1,934,010
Exercised	(114,244)	42.69	(4,877)	(5,928)
Repurchase	12,434,500	54.64	679,431	679,431
Canceled	(20,000,000)	42.69	(853,725)	(1,058,200)
Balances at June 30, 2024	27,085,856	48.17	1,304,843	1,544,165

25 EARNINGS (LOSS) PER SHARE

25.1 Basic

The basic earnings (loss) per share is measured by dividing the profit attributable to the Company’s shareholders by the weighted average number of common shares issued during the period, excluding the common shares acquired by the Company and held as treasury shares.


	06/30/2024	06/30/2023
Net Income (Loss) for the period attributed to Controlling shareholders'	(3,554,806)	10,310,498
Weighted average number of shares in the period – in thousands	1,306,865	1,336,021
Weighted average treasury shares – in thousands	(22,508)	(26,791)
Weighted average number of outstanding shares – in thousands	1,284,357	1,309,230
Basic earnings (loss) per common share – R$	(2.76777)	7.87524

25.2 Diluted

The diluted earnings (loss) per share is measured by adjusting the weighted average of outstanding common shares, assuming the conversion of all common shares with dilutive effects.


	06/30/2024	06/30/2023
Net Income (Loss) for the period attributed to Controlling shareholders'	(3,554,806)	10,310,498
Weighted average number of shares during the period (except treasury shares) – in thousands	1,284,357	1,309,230
Average number of potential shares (stock options) - in thousands		487
Weighted average number of shares (diluted) – in thousands	1,284,357	1,309,717
Diluted earnings (loss) per common share – R$	(2.76777)	7.87231

Due to the loss in the period, the Company does not consider the dilution effect in the measurement.

25.3 Profit reserves

Reserves are constituted by the allocation of the Company's profits, after the allocation for the payment of the minimum mandatory dividends and after the allocation to the various profit reserves.



51



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

On April 25, 2024, the Shareholder's meeting deliberated on the accumulated balance of profit reserves on the Reserve for capital increase that exceeded the limit established in the Company's Bylaws, thus the Company's capital increase in the amount of R$10,000,000 was approved without the issuance of new shares through the transfer of the book balance from the Reserve for Capital Increase to Capital Stock without financial disbursement as described in the note 1.2.4.

26 NET FINANCIAL RESULT


	06/30/2024	06/30/2023
Financial expenses
Interest on loans, financing and debentures (1)	(1,743,417)	(1,797,937)
Amortization of transaction costs (2)	(39,616)	(32,421)
Interest expenses on lease liabilities (3)	(222,185)	(223,237)

Other	(278,075)	(254,471)
	(2,283,293)	(2,308,066)

Financial income
Cash and cash equivalents and marketable securities	819,082	683,608
Other	62,023	106,290
	881,105	789,898
Results from derivative financial instruments
Income	824,285	6,758,955
Expenses	(5,349,163)	(1,859,936)
	(4,524,878)	4,899,019
Monetary and exchange rate variations, net
Exchange rate variations on loans, financing and debentures	(9,383,027)	4,543,048
Leases	(329,505)	191,986
Other assets and liabilities (4)	1,525,875	(1,110,099)
	(8,186,657)	3,624,935
Net financial result	(14,113,723)	7,005,786

(1)Excludes R$802,515 arising from capitalized loan costs, substantially related to property, plant and equipment in progress of the Cerrado Project for the six-month period ended June 30, 2024 (R$511,650 as at June 30, 2023).

(2)In 2024, does not include expenses arising from transaction costs on loans and financing that were recognized directly in the statement of income (R$19 as at June 30, 2023).

(3)Includes R$104,137 referring to the reclassification to the biological assets item for the composition of the formation cost (R$49,946 as of June 30, 2023).

(4)Includes effects of exchange rate variations of trade accounts receivable, trade accounts payable, cash and cash equivalents, marketable securities and others.

27 NET SALES


	06/30/2024	06/30/2023
Gross sales	25,593,875	24,552,121
Sales deductions
Returns and cancellations	(116,134)	(65,560)
Discounts and rebates	(3,409,573)	(3,019,895)
	22,068,168	21,466,666
Taxes on sales	(1,115,430)	(1,030,649)
Net sales	20,952,738	20,436,017



52



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

28 SEGMENT INFORMATION

28.1 Criteria for identifying operating segments

The Board of Directors and Board of Statutory Executive Officers evaluates the performance of the Company’s business segments through EBITDA.

The operating segments defined by the Company’s management are set forth below:

i)Pulp: comprised of the production and sale of hardwood eucalyptus pulp and fluff pulp, mainly to supply the foreign market.

ii)Paper: comprises the production and sale of paper to meet the demands of both the domestic and foreign markets. Consumer goods (tissue) sales are classified under this segment due to their immateriality.

Information related to total assets by reportable segment is not disclosed, as it is not included in the set of information made available to the Company’s management, which makes investment decisions and determines the allocation of resources on a consolidated basis.

In addition, with respect to geographical information related to non-current assets, the Company does not disclose such information, as all property, plant and equipment, biological and intangible assets are in Brazil.

28.2 Information of operating segments


	06/30/2024
	Pulp	Paper	Total
Net sales	16,594,855	4,357,883	20,952,738
Domestic market (Brazil)	1,049,948	3,311,970	4,361,918
Foreign market	15,544,907	1,045,913	16,590,820

EBITDA (1)	9,742,936	1,533,716	11,276,652
Depreciation, depletion and amortization			(4,110,780)
Operating profit before net financial income (“EBIT”) (2)			7,165,872

EBITDA margin (%)	58.71%	35.19%	53.82%

(1)EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization).

(2)EBIT (Earnings Before Interest and Tax).


	06/30/2023
	Pulp	Paper	Total
Net sales	16,302,347	4,133,670	20,436,017
Domestic market (Brazil)	1,249,493	2,971,910	4,221,403
Foreign market	15,052,854	1,161,760	16,214,614

EBITDA (1)	9,155,697	1,812,784	10,968,481
Depreciation, depletion and amortization			(3,593,516)
Operating profit before net financial income (“EBIT”) (2)			7,374,965

EBITDA margin (%)	56.16%	43.85%	53.67%

(1)EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization).

(2)EBIT (Earnings Before Interest and Tax).



53



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

28.3 Net sales by product


Products	06/30/2024	06/30/2023
Market pulp (1)	16,594,855	16,302,347
Printing and writing paper (2)	3,738,388	3,384,698
Paperboard	586,651	708,576
Other	32,844	40,396
	20,952,738	20,436,017

(1)Net sales of fluff pulp represent 0.7% of total net sales, and therefore were included in market pulp net sales. (0.8% as at June 30, 2023).

(2)Net sales of tissue represent 6.3% of total net sales, and therefore were included in printing and writing paper net sales. (3.1% as at June 30, 2023).

28.4 Goodwill based on expected future profitability

The goodwill based on expected future profitability arising from the business combination was allocated to the disclosable segments, which correspond to the Company's cash-generating units (“CGUs”), considering the economic benefits generated by such intangible assets. The allocation of goodwill is set out below:


	06/30/2024	12/31/2023
Pulp	7,897,051	7,897,051
Paper	290,191	290,191
	8,187,242	8,187,242



54



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

29 INCOME (EXPENSES) BY NATURE


	06/30/2024	06/30/2023
Cost of sales
Personnel expenses	(759,931)	(711,401)
Costs of raw materials, materials and services	(5,118,397)	(5,336,373)
Logistics cost	(2,201,398)	(2,129,684)
Depreciation, depletion and amortization	(3,558,672)	(3,144,107)
Other (1)	(154,711)	(875,290)
	(11,793,109)	(12,196,855)
Selling expenses
Personnel expenses	(152,841)	(126,331)
Services	(104,965)	(62,108)
Logistics cost	(570,533)	(516,380)
Depreciation and amortization	(478,818)	(475,228)
Other (2)	(46,311)	(51,115)
	(1,353,468)	(1,231,162)
General and administrative expenses
Personnel expenses	(661,716)	(489,463)
Services	(208,933)	(171,346)
Depreciation and amortization	(69,204)	(55,014)
Other (3)	(120,893)	(101,620)
	(1,060,746)	(817,443)
Other operating (expenses) income, net
Rents and leases	504	1,476
Results from sales of other products, net	38,121	48,312
Results from sales and disposals of property, plant and equipment, intangible and biological assets, net	(124,424)	(111,195)
Result on fair value adjustment of biological assets	539,003	1,256,315
Depletion and amortization	(4,086)	80,833
Provision for judicial liabilities	(56,307)	(71,878)
Other operating income (expenses), net	31,159	(19,874)
	423,970	1,183,989

(1)Includes R$126,392 related to maintenance downtime, costing (R$411,718 as at June 30, 2023).

(2)Includes expected credit losses, insurance, materials for use and consumption, travel, accommodation, trade fairs and events.

(3)Includes, substantially, corporate expenses, insurance, materials for use and consumption, social programs and donations, travel and accommodation.

30 EVENTS AFTER THE REPORTING PERIOD

30.1 Share purchase and sale agreement - Timber

On July 10, 2024, the Company completed the purchase transaction of 100% of the share capital of the companies Timber VII SPE S.A. and Timber XX SPE S.A., after completion of all conditions precedent. The fair value of consideration transferred in cash was R$2,122,860, which is subject to non-material post-closing adjustments, based on changes in the working capital of the acquired companies.

Considering the characteristics of the assets (substantially land and biological assets, without processes that would characterize a business), the Company elected to apply the optional test to identify a concentration of fair value under paragraph B7A of IFRS 3. The transaction was accounted for as an asset acquisition, given that substantially all of the fair value of the acquired set of assets is concentrated in the principal asset (property, plant and equipment).



55



			Suzano S.A.
			Notes to the unaudited condensed consolidated interim financial information
			Six-month period ended June 30, 2024

30.2 Acquisition of Pactiv Evergreen Inc. assets

On July 12, 2024, the Company has executed an agreement, through a subsidiary, with Pactiv Evergreen Inc. and its affiliates (‘Pactiv’) for the acquisition of all assets that make up the integrated plants for the production of coated and uncoated paperboard, used in the production of Liquid Packaging Board and Cupstock, located in the cities of Pine Bluff – Arkansas and Waynesville – North Carolina, both in the United States of America. The purchase price is US$110,000 (equivalents to R$611,479), to be paid in cash upon closing of the Transaction, subject to customary price adjustments. The completion of the Transaction is subject to verification of usual conditions precedent for transactions of this nature, including the approval of the Transaction by a foreign antitrust authority. At the closing of the Transaction, the Parties will execute (i) a transitional services agreement, under which Pactiv will provide services to Suzano on the acquired assets, and (ii) a long-term supply agreement, under which Suzano will supply to Pactiv the products currently produced in Pine Bluff and consumed by Pactiv, which will become a relevant customer of this new Suzano’s asset.

30.3 Cerrado Project start-up

On July 21, 2024, the new pulp mill located in Ribas do Rio Pardo, in the state of Mato Grosso do Sul, started its operation (“Cerrado Project”).



56

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 06, 2024


						SUZANO S.A.

			By:			/s/ Marcelo Feriozzi Bacci
			Name:			Marcelo Feriozzi Bacci
			Title:			Chief Financial and Investor Relations Officer

Suzano (SUZ) 6-KCurrent report (foreign)