Suzano SA Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cadu Schmidt - UBS Investment Bank, Research Division - Analyst : Two questions on my side. Leo, can you please share some views on Suzano's inventory position? Can we expect production to surpass sales this year considering low inventories at the moment and another massive concentration of downtimes in the second quarter of next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 05, 2022 / 1:00PM, SUZB3.SA - Q1 2022 Suzano SA Earnings Call And my second question to Walter. Walter, can you please comment on the law proposal that would allow private companies the right to have the concession of public forest in Brazil and explore carbon credits from these assets? Is Suzano interested in acquiring any of these concessions assuming that the law is approved? And do you have any initial estimates on the benefits in cost for a transaction like this? Leonardo Barretto De Araujo Grimaldi - Suzano S.A. - Executive Officer of Commercial Pulp, People & Management and Member of Management Board Cadu, so regarding inventory, for obvious reasons, we cannot disclose our forward strategy as it is very linked to our commercial strategy. What I can tell you is that we have been running for several quarters in a row with suboptimum stock levels, inventory levels, which is putting a lot of pressure on all our operations team to be able to maintain the excellence and the reference of service levels that we have to keep our service good.