0 0 0 0 0 0 0 0 P24M P6Y P7Y

Exhibit 99.1

​

​ ​ December 31, 2018, 2017 and 2016 ​ ​ ​ | ​ ​
Suzano S.A. ​ Unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED BALANCE SHEET

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | June 30, | ​ | December 31,
​ |  | Note |  | 2023 |  | 2022
ASSETS | ​ | ​ | ​ | ​ | ​ | ​
CURRENT | ​ | ​ | ​ | ​ | ​ | ​
Cash and cash equivalents | ​ | 5 | ​ | 11,860,415 | ​ | 9,505,951
Marketable securities | ​ | 6 | ​ | 7,913,730 | ​ | 7,546,639
Trade accounts receivable | ​ | 7 | ​ | 6,488,192 | ​ | 9,607,012
Inventories | ​ | 8 | ​ | 6,422,496 | ​ | 5,728,261
Recoverable taxes | ​ | 9 | ​ | 747,847 | ​ | 549,580
Derivative financial instruments | ​ | 4.5 | ​ | 3,747,881 | ​ | 3,048,493
Advances to suppliers | ​ | 10 | ​ | 103,181 | ​ | 108,146
Dividends receivable | ​ | 11 | ​ | ​ | ​ | 7,334
Other assets | ​ | ​ | ​ | 778,557 | ​ | 1,021,234
Total current assets | ​ | ​ | ​ | 38,062,299 | ​ | 37,122,650
​ | ​ | ​ | ​ | ​ | ​ | ​
NON-CURRENT | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | 6 | ​ | 441,140 | ​ | 419,103
Recoverable taxes | ​ | 9 | ​ | 1,357,354 | ​ | 1,406,363
Deferred taxes | ​ | 12 | ​ | 147,638 | ​ | 3,986,415
Derivative financial instruments | ​ | 4.5 | ​ | 1,731,906 | ​ | 1,825,256
Advances to suppliers | ​ | 10 | ​ | 1,981,199 | ​ | 1,592,132
Judicial deposits | ​ | ​ | ​ | 342,017 | ​ | 362,561
Other assets | ​ | ​ | ​ | 289,433 | ​ | 279,955
​ | ​ | ​ | ​ | ​ | ​ | ​
Biological assets | ​ | 13 | ​ | 16,914,120 | ​ | 14,632,186
Investments | ​ | 14 | ​ | 640,269 | ​ | 612,516
Property, plant and equipment | ​ | 15 | ​ | 56,028,308 | ​ | 50,656,634
Right of use | ​ | 19.1 | ​ | 5,230,789 | ​ | 5,109,226
Intangible | ​ | 16 | ​ | 15,112,147 | ​ | 15,192,971
Total non-current assets | ​ | ​ | ​ | 100,216,320 | ​ | 96,075,318
TOTAL ASSETS | ​ | ​ | ​ | 138,278,619 | ​ | 133,197,968

​

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

​

​

1

​

​ ​ December 31, 2018, 2017 and 2016 ​ ​ ​ | ​ ​
Suzano S.A. ​ Unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED BALANCE SHEET

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | June 30, | ​ | December 31,
​ |  | Note |  | 2023 |  | 2022
LIABILITIES | ​ | ​ | ​ | ​ | ​ | ​
CURRENT | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts payable | ​ | 17 | ​ | 6,347,954 | ​ | 6,206,570
Loans, financing and debentures | ​ | 18.1 | ​ | 5,532,543 | ​ | 3,335,029
Lease liabilities | ​ | 19.2 | ​ | 710,906 | ​ | 672,174
Derivative financial instruments | ​ | 4.5 | ​ | 483,512 | ​ | 667,681
Taxes payable | ​ | ​ | ​ | 425,156 | ​ | 449,122
Payroll and charges | ​ | ​ | ​ | 629,911 | ​ | 674,525
Liabilities for assets acquisitions and subsidiaries | ​ | 23 | ​ | 101,207 | ​ | 1,856,763
Dividends payable | ​ | ​ | ​ | 2,678 | ​ | 5,094
Advances from customers | ​ | ​ | ​ | 74,538 | ​ | 131,355
Other liabilities | ​ | ​ | ​ | 541,190 | ​ | 494,230
Total current liabilities | ​ | ​ | ​ | 14,849,595 | ​ | 14,492,543
​ | ​ | ​ | ​ | ​ | ​ | ​
NON-CURRENT | ​ | ​ | ​ | ​ | ​ | ​
Loans, financing and debentures | ​ | 18.1 | ​ | 68,999,788 | ​ | 71,239,562
Lease liabilities | ​ | 19.2 | ​ | 5,485,078 | ​ | 5,510,356
Derivative financial instruments | ​ | 4.5 | ​ | 1,735,204 | ​ | 4,179,114
Liabilities for assets acquisitions and subsidiaries | ​ | 23 | ​ | 179,657 | ​ | 205,559
Provision for judicial liabilities | ​ | 20.1 | ​ | 3,175,080 | ​ | 3,256,310
Employee benefit plans | ​ | 21.2 | ​ | 701,933 | ​ | 691,424
Deferred taxes | ​ | 12 | ​ | 11,377 | ​ | 1,118
Share-based compensation plans | ​ | 22.3 | ​ | 183,589 | ​ | 162,117
Advances from customers | ​ | ​ | ​ | 136,161 | ​ | 136,161
Other liabilities | ​ | ​ | ​ | 121,144 | ​ | 157,339
Total non-current liabilities | ​ | ​ | ​ | 80,729,011 | ​ | 85,539,060
TOTAL LIABILITIES | ​ | ​ | ​ | 95,578,606 | ​ | 100,031,603
​ | ​ | ​ | ​ | ​ | ​ | ​
EQUITY | ​ | 24 | ​ | ​ | ​ | ​
Share capital | ​ | ​ | ​ | 9,235,546 | ​ | 9,235,546
Capital reserves | ​ | ​ | ​ | 22,584 | ​ | 18,425
Treasury shares | ​ | ​ | ​ | (1,381,600) | ​ | (2,120,324)
Profit reserves | ​ | ​ | ​ | 22,690,645 | ​ | 24,207,869
Other reserves | ​ | ​ | ​ | 1,650,150 | ​ | 1,719,516
Retained earnings | ​ | ​ | ​ | 10,370,124 | ​ | ​
Controlling shareholders’ | ​ | ​ | ​ | 42,587,449 | ​ | 33,061,032
Non-controlling interest | ​ | ​ | ​ | 112,564 | ​ | 105,333
Total equity | ​ | ​ | ​ | 42,700,013 | ​ | 33,166,365
TOTAL LIABILITIES AND EQUITY | ​ | ​ | ​ | 138,278,619 | ​ | 133,197,968

​

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, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Second quarter | ​ | Semester ended
​ | ​ | ​ | ​ | April 1 to | ​ | April 1 to | ​ | June 30, | ​ | June 30,
​ |  | Note |  | June 30, 2023 |  | June 30, 2022 |  | 2023 |  | 2022
NET SALES | ​ | 27 | ​ | 9,159,634 | ​ | 11,519,655 | ​ | 20,436,017 | ​ | 21,262,490
Cost of sales | ​ | 29 | ​ | (6,228,181) | ​ | (6,122,925) | ​ | (12,196,855) | ​ | (11,555,765)
GROSS PROFIT | ​ | ​ | ​ | 2,931,453 | ​ | 5,396,730 | ​ | 8,239,162 | ​ | 9,706,725
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
OPERATING INCOME (EXPENSES) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Selling | ​ | 29 | ​ | (626,809) | ​ | (625,567) | ​ | (1,231,162) | ​ | (1,197,708)
General and administrative | ​ | 29 | ​ | (427,208) | ​ | (364,768) | ​ | (817,443) | ​ | (701,232)
Income (expense) from associates and joint ventures | ​ | 14 | ​ | (14,052) | ​ | 19,049 | ​ | 419 | ​ | 9,307
Other, net | ​ | 29 | ​ | 1,205,293 | ​ | 161,993 | ​ | 1,183,989 | ​ | 159,426
OPERATING PROFIT BEFORE NET FINANCIAL INCOME | ​ | ​ | ​ | 3,068,677 | ​ | 4,587,437 | ​ | 7,374,965 | ​ | 7,976,518
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
NET FINANCIAL INCOME (EXPENSES) | ​ | 26 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financial expenses | ​ | ​ | ​ | (1,149,041) | ​ | (1,133,402) | ​ | (2,308,066) | ​ | (2,183,523)
Financial income | ​ | ​ | ​ | 404,137 | ​ | 194,283 | ​ | 789,898 | ​ | 352,567
Derivative financial instruments | ​ | ​ | ​ | 2,903,766 | ​ | (1,575,557) | ​ | 4,899,019 | ​ | 4,620,886
Monetary and exchange variations, net | ​ | ​ | ​ | 2,376,817 | ​ | (4,459,984) | ​ | 3,624,935 | ​ | 3,170,689
NET INCOME (LOSS) BEFORE TAXES | ​ | ​ | ​ | 7,604,356 | ​ | (2,387,223) | ​ | 14,380,751 | ​ | 13,937,137
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income and social contribution taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current | ​ | 12 | ​ | (97,226) | ​ | (63,703) | ​ | (211,003) | ​ | (122,637)
Deferred | ​ | 12 | ​ | (2,429,507) | ​ | 2,632,715 | ​ | (3,849,332) | ​ | (3,326,601)
NET INCOME FOR THE PERIOD | ​ | ​ | ​ | 5,077,623 | ​ | 181,789 | ​ | 10,320,416 | ​ | 10,487,899
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Attributable to | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Controlling shareholders’ | ​ | ​ | ​ | 5,073,127 | ​ | 175,625 | ​ | 10,310,498 | ​ | 10,480,342
Non-controlling interest | ​ | ​ | ​ | 4,496 | ​ | 6,164 | ​ | 9,918 | ​ | 7,557
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings (loss) per share | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic | ​ | 25.1 | ​ | 3.90544 | ​ | 0.13057 | ​ | 7.87524 | ​ | 7.77949
Diluted | ​ | 25.2 | ​ | 3.90397 | ​ | 0.13054 | ​ | 7.87231 | ​ | 7.77825

​

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, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Second quarter | ​ | Semester ended
​ | ​ | April 1 to | ​ | April 1 to | ​ | June 30, | ​ | June 30,
​ |  | June 30, 2023 |  | June 30, 2022 |  | 2023 |  | 2022
Net income for the period | ​ | 5,077,623 | ​ | 181,789 | ​ | 10,320,416 | ​ | 10,487,899
Other comprehensive income (loss) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fair value investments in equity measured at fair value through other comprehensive income | ​ | (742) | ​ | 1,775 | ​ | (1,376) | ​ | (2,058)
Tax effect on the fair value of investments | ​ | 252 | ​ | (603) | ​ | 468 | ​ | 700
Items with no subsequent effect on income | ​ | (490) | ​ | 1,172 | ​ | (908) | ​ | (1,358)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Exchange rate variations on conversion of financial information of subsidiaries abroad | ​ | 11,607 | ​ | 3,001 | ​ | (8,832) | ​ | (6,852)
Realization of exchange variation on investments abroad | ​ | ​ | ​ | (14) | ​ | ​ | ​ | (14)
Items with subsequent effect on income | ​ | 11,607 | ​ | 2,987 | ​ | (8,832) | ​ | (6,866)
​ | ​ | 5,088,740 | ​ | 185,948 | ​ | 10,310,676 | ​ | 10,479,675
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Attributable to | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Controlling shareholders’ | ​ | 5,084,244 | ​ | 179,784 | ​ | 10,300,758 | ​ | 10,472,118
Non-controlling interest | ​ | 4,496 | ​ | 6,164 | ​ | 9,918 | ​ | 7,557

​

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, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Attributable to controlling shareholders’
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Share capital | ​ | Capital reserves | ​ | ​ | ​ | Profit reserves | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Share | ​ | Stock | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Reserve | ​ | Special | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Retained | ​ | ​ | ​ | Non- | ​ | ​
​ | ​ | Share | ​ | issuance | ​ | options | ​ | Treasury | ​ | Tax | ​ | Legal | ​ | for capital | ​ | statutory | ​ | Investment | ​ | Dividends | ​ | Other | ​ | earnings | ​ | ​ | ​ | controlling | ​ | ​
​ |  | Capital |  | costs |  | granted |  | shares |  | incentives |  | Reserve |  | increase |  | reserve |  | reserve | ​ | proposed |  | reserves |  | (losses) |  | Total |  | interest |  | Total equity
Balances at December 31, 2021 | ​ | 9,269,281 | ​ | (33,735) | ​ | 15,455 | ​ | (218,265) | ​ | 812,909 | ​ | 235,019 | ​ | 2,513,663 | ​ | 279,344 | ​ | ​ | ​ | 86,889 | ​ | 2,114,907 | ​ | ​ | ​ | 15,075,467 | ​ | 99,663 | ​ | 15,175,130
Total comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income for the period | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 10,480,342 | ​ | 10,480,342 | ​ | 7,557 | ​ | 10,487,899
Other comprehensive income for the period | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (8,224) | ​ | ​ | ​ | (8,224) | ​ | ​ | ​ | (8,224)
Transactions with shareholders | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Stock options granted (Note 22.3) | ​ | ​ | ​ | ​ | ​ | 2,668 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,668 | ​ | ​ | ​ | 2,668
Shares granted (Note 22.3) | ​ | ​ | ​ | ​ | ​ | (2,365) | ​ | 2,365 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Share repurchase (note 24.2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (601,551) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (601,551) | ​ | ​ | ​ | (601,551)
Unclaimed dividends forfeited | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 194 | ​ | 194 | ​ | ​ | ​ | 194
Fair value attributable to non-controlling interest | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,539) | ​ | (2,539)
Proposed additional dividend payment (note 1.2.2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (97) | ​ | ​ | ​ | ​ | ​ | (86,889) | ​ | ​ | ​ | ​ | ​ | (86,986) | ​ | ​ | ​ | (86,986)
Payment of supplementary dividends (note 1.2.3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (719,903) | ​ | (80,000) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (799,903) | ​ | ​ | ​ | (799,903)
Internal changes in equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Proposed minimum mandatory dividends | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (502) | ​ | ​ | ​ | 502 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Realization of deemed cost, net of taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (57,845) | ​ | 57,845 | ​ | ​ | ​ | ​ | ​ | ​
Balances at June 30, 2022 | ​ | 9,269,281 | ​ | (33,735) | ​ | 15,758 | ​ | (817,451) | ​ | 812,407 | ​ | 235,019 | ​ | 1,794,165 | ​ | 199,344 | ​ | ​ | ​ | ​ | ​ | 2,048,838 | ​ | 10,538,381 | ​ | 24,062,007 | ​ | 104,681 | ​ | 24,166,688
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 for the period | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,740) | ​ | ​ | ​ | (9,740) | ​ | ​ | ​ | (9,740)
Transactions with shareholders | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Shares granted (Note 22.3) | ​ | ​ | ​ | ​ | ​ | 4,159 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,159 | ​ | ​ | ​ | 4,159
Shares repurchased (Note 24.2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (778,500) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (778,500) | ​ | ​ | ​ | (778,500)
Treasury shares cancelled (Note 1.2.5) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,517,224 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,517,224) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fair value attributable to non-controlling interest | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,687) | ​ | (2,687)
Internal changes in equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Constitution of reserves (Note 25.3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (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

​

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, 2023 ​ (In thousands of R$, unless otherwise stated) ​ | ​

​

CONSOLIDATED STATEMENTS OF CASH FLOW

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
OPERATING ACTIVITIES | ​ | ​ | ​ | ​
Net income (loss) for the period | ​ | 10,320,416 | ​ | 10,487,899
Adjustment to | ​ | ​ | ​ | ​
Depreciation, depletion and amortization | ​ | 3,451,862 | ​ | 3,505,869
Depreciation of right of use (Note 19.1) | ​ | 141,654 | ​ | 109,860
Sublease of ships | ​ | ​ | ​ | (11,314)
Interest expense on lease liabilities | ​ | 223,237 | ​ | 210,597
Result from sale and disposal of property, plant and equipment and biological assets, net (Note 29) | ​ | 111,195 | ​ | (8,041)
Income (expense) from associates and joint ventures | ​ | (419) | ​ | (9,307)
Exchange rate and monetary variations, net (Note 26) | ​ | (3,624,935) | ​ | (3,170,689)
Interest expenses on financing, loans and debentures, net (Note 26) | ​ | 2,309,587 | ​ | 1,851,948
Capitalized loan costs (Note 26) | ​ | (511,650) | ​ | (108,972)
Accrual of interest on marketable securities | ​ | (529,887) | ​ | (279,092)
Amortization of transaction costs (Note 26) | ​ | 32,421 | ​ | 36,838
Derivative gains, net (Note 26) | ​ | (4,899,019) | ​ | (4,620,886)
Fair value adjustment of biological assets (Note 13) | ​ | (1,256,315) | ​ | (171,618)
Deferred income tax and social contribution (Note 12.3) | ​ | 3,849,332 | ​ | 3,326,601
Interest on actuarial liabilities (Note 21.2) | ​ | 34,615 | ​ | 29,616
Provision for judicial liabilities, net (Note 20.1) | ​ | 62,154 | ​ | 63,001
Tax litigation reduction program | ​ | 14,031 | ​ | ​
Provision for doubtful accounts, net (Note 7.3) | ​ | 10,287 | ​ | 2,088
Provision for inventory losses, net (Note 8.1) | ​ | (854) | ​ | (9,519)
Provision for loss of ICMS credits, net (Note 9.1) | ​ | 202,961 | ​ | 34,676
Other | ​ | 10,494 | ​ | 7,501
Decrease (increase) in assets | ​ | ​ | ​ | ​
Trade accounts receivable | ​ | 2,573,633 | ​ | 464,246
Inventories | ​ | (372,295) | ​ | (744,261)
Recoverable taxes | ​ | (335,807) | ​ | (168,111)
Other assets | ​ | 235,459 | ​ | 69,152
Increase (decrease) in liabilities | ​ | ​ | ​ | ​
Trade accounts payable | ​ | (105,036) | ​ | 997,290
Taxes payable | ​ | 82,064 | ​ | 90,938
Payroll and charges | ​ | (63,898) | ​ | (67,050)
Other liabilities | ​ | (158,527) | ​ | (180,291)
Cash generated from operations | ​ | 11,806,760 | ​ | 11,738,969
Payment of interest on financing, loans and debentures (Note 18.3) | ​ | (2,352,484) | ​ | (1,919,402)
Capitalized loan costs paid | ​ | 511,650 | ​ | 108,972
Interest received on marketable securities | ​ | 391,601 | ​ | 229,925
Payment of income taxes | ​ | (89,482) | ​ | (94,393)
Cash provided by operating activities | ​ | 10,268,045 | ​ | 10,064,071
​ | ​ | ​ | ​ | ​
INVESTING ACTIVITIES | ​ | ​ | ​ | ​
Additions to property, plant and equipment (Note 15) | ​ | (5,759,447) | ​ | (3,397,882)
Additions to intangible (Note 16) | ​ | (197) | ​ | (69,100)
Additions to biological assets (Note 13) | ​ | (2,899,032) | ​ | (2,135,997)
Proceeds from sales of property, plant and equipment | ​ | 97,412 | ​ | 98,328
Capital increase in subsidiaries and affiliates | ​ | (35,075) | ​ | (26,863)
Marketable securities, net | ​ | (683,505) | ​ | (4,691,843)
Advances for acquisition (receipt) of wood from operations with development and partnerships | ​ | (410,024) | ​ | (174,490)
Dividends received | ​ | 4,869 | ​ | 6,604
Asset acquisition (Note 23) | ​ | (1,615,140) | ​ | (1,699,869)
Acquisition of subsidiaries (Note 1.2.3) | ​ | (1,072,657) | ​ | ​
Net cash from acquisition of subsidiaries | ​ | 5,002 | ​ | ​
Cash used in investing activities | ​ | (12,367,794) | ​ | (12,091,112)
​ | ​ | ​ | ​ | ​
FINANCING ACTIVITIES | ​ | ​ | ​ | ​
Proceeds from loans, financing and debentures (Note 18.3) | ​ | 5,276,816 | ​ | 265,090
Receipt of derivative transactions (Note 4.5.4) | ​ | 1,664,900 | ​ | 186,312
Payment of loans, financing and debentures (Note 18.3) | ​ | (765,533) | ​ | (853,625)
Payment of leases (Note 19.2) | ​ | (577,132) | ​ | (499,372)
Payment of dividends | ​ | (2,415) | ​ | (1,801,562)
Liabilities for assets acquisitions and subsidiaries | ​ | (16,929) | ​ | (109)
Shares repurchased (Note 24.2) | ​ | (721,052) | ​ | (502,065)
Cash provided (used) by financing activities | ​ | 4,858,655 | ​ | (3,205,331)
​ | ​ | ​ | ​ | ​
EXCHANGE VARIATION ON CASH AND CASH EQUIVALENTS | ​ | (404,442) | ​ | (646,323)
​ | ​ | ​ | ​ | ​
Increase (decrease) in cash and cash equivalents, net | ​ | 2,354,464 | ​ | (5,878,695)
At the beginning of the period | ​ | 9,505,951 | ​ | 13,590,776
At the end of the period | ​ | 11,860,415 | ​ | 7,712,081
Increase (decrease) in cash and cash equivalents, net | ​ | 2,354,464 | ​ | (5,878,695)

​

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, 2023 ​ |

​

​

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, Suzano, Rio Verde and Mogi das Cruzes (São Paulo State) and Três Lagoas (Mato Grosso do Sul State). Additionally, it has five technology centers, 23 distribution centers and three 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, the operation of port terminals, and the holding of interests, as a partner or shareholder, in other companies or enterprises, and the generation of electricity in the pulp production process and its commercialization.

The Company is controlled by Suzano Holding S.A., through a voting agreement whereby it holds 47.12% of the common shares of its share capital.

These unaudited condensed consolidated interim financial information was authorized by the Board of Directors on August 1, 2023.

7

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

1.1. | Equity interests

The Company holds equity interests in the following entities:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | % equity interest | ​
​ | ​ | ​ | ​ | ​ | ​ | June 30, | ​ | December 31, | ​
Entity/Type of investment |  | Main activity |  | Country |  | 2023 |  | 2022 | ​
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) | ​ | Financial fundraising | ​ | Cayman Island | ​ | 100.00 | % | 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 | %
MMC Brasil Indústria e Comércio Ltda (Direct)(1) | ​ | Industrialization and commercialization of wipes, cleaning and sanitary products. | ​ | Brazil | ​ | 100.00 | % | ​ | ​
Mucuri Energética S.A. (Direct) | ​ | Power generation and distribution | ​ | Brazil | ​ | 100.00 | % | 100.00 | %
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) (2) | ​ | Commercialization of paper | ​ | Ecuador | ​ | 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 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 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) (3) | ​ | Business office | ​ | China | ​ | 100.00 | % | ​ | ​
Suzano Singapura Pte. Ltd (Direct) (4) | ​ | Business office | ​ | Singapore | ​ | 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 | %

​

8

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | % equity interest | ​
​ | ​ | ​ | ​ | ​ | ​ | June 30, | ​ | December 31, | ​
Entity |  | Main activity |  | Country |  | 2023 |  | 2022 | ​
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) (5) | ​ | Restoration, conservation and preservation of forests | ​ | Brazil | ​ | 16.66 | % | 100.00 | %
Ensyn Corporation (Direct) (6) | ​ | Biofuel research and development | ​ | United States of America | ​ | 26.07 | % | 26.59 | %
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 | ​ | 19.03 | % | 19.03 | %
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 | %

​

1) | On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.)

2) | On March 8, 2023, establishment of legal entity with full equity interest from Suzano S.A.

3) | On May 19, 2023, establishment of legal entity with full equity interest from Suzano S.A.

4) | On May 23, 2023, establishment of legal entity with full equity interest from Suzano S.A.

5) | On February 27 and March 21, 2023, equivalent contributions were made by the six shareholders of Biomas to constitute an equity interest (Note 1.2.6).

6) | On May 17, 2023, the percentage of interest was changed due to the dilution of the shares.

​

​

9

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

1.2.Major events in the six-month period ended June 30, 2023

1.2.1.Effects of the war between Russia and Ukraine

The Company has continuously monitored the impacts of the current conflict between Russia and Ukraine, 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 four main areas:

| (i) | Personnel: Suzano does not have employees or facilities of any nature in any of the locations directly impacted by 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.

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 estimated nominal capacity of 2,550,000 tons of eucalyptus pulp production per year, with an estimated period for starting operations in the second semester of 2024. The total investment is R$22,200,000, with payments during the years of 2021 to 2024.

1.2.3.Acquisition of tissue business in Brazil

On June 1 2023, the Company acquired the totality of the quotas held by Kimberly-Clark Brasil Indústria e Comércio de Produtos de Higiene Ltda. (“KC Brasil”) in MMC Brasil Indústria e Comércio Ltda (“MMC Brasil”) for the consideration of US$212,029 million (equivalent to R$1,072,657) paid in cash (“Transaction”).

MMC Brasil had no operations until the contribution made by KC Brasil as a result of the carve out carried out in May 25, 2023 of the assets related to the business of manufacturing, marketing, distributing and selling of tissue products, including toilet paper, paper towels, napkins, tissues, as well as other paper products in Brazil, including ownership of the brand “NEVE” of KC Brasil.

10

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

The following table summarizes the allocation of the preliminary purchase price:
​

​

​ | ​ | ​
Total purchase consideration (full payment on closing) |  | 1,072,657
​ | ​ | ​
Book value of Shareholders’ Equity of MMC Brasil |  | 587,226
​ | ​ | ​
Fair value adjustment |  |
Inventories (1) |  | 7,120
Property, plant and equipment (2) |  | 105,858
Trademark and patents (3) |  | 189,655
Net identifiable assets acquired |  | 889,859
Goodwill (4) |  | 182,798

​

(1) | Measured considering the balance of finished products based on selling price, net of selling expenses.

(2) | Measured based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets.

(3) | Measured based on revenue projections for products under the evaluated brands, according to the Refief from Royalties methodology.

(4)Goodwill is attributable to the workforce and expected future profitability of the acquired business. It will be deductible for tax purposes.

​

No deferred tax was recognized on the fair value adjustments as there is an expectation of merging MMC within the fiscal year of 2023.

Considering the fact that MMC Brasil was created based on a carve out of a portion of the KC Brasil businesses, counterparty of the transaction, there is no previous history of revenue and/or profits specifically for the acquired entity to be considered or included in a pro forma consolidated revenue and pro forma consolidated profit as if the acquisition had occurred on January 1, 2023.

Acquisition related costs of R$12,105 are included in administrative expenses in profit or loss.

1.2.4.Federal Supreme Court (“STF”) decision – Effectiveness of final and unappealable tax decisions

On February 8, 2023, the Federal Supreme Court in Brazil concluded the judgments of Items 881 and 885, which discussed the effects of res judicata. Notwithstanding, considering the information available as of the date of these unaudited condensed consolidated interim financial information, the Company is not a party to any litigation related to a tax not being collected due to a past decision considered unappealable, therefore, the Company has no material adjustment due to the decision.

1.2.5.Treasury shares cancelled

On February 28, 2023, the Board of Directors decided to cancel 37,145,969 common shares, with an average cost of R$40.84 (forty reais and eighty-four cents) per share, in the amount of R$1,517,224, that were being held in treasury, without changing the share capital and against the balances of available profit reserves. After the cancellation of shares, the share capital of R$9,269,281 is now divided into 1,324,117,615 common shares, all nominative, book-entry and without par value.

1.2.6.Biomas

On September 5, 2022, Biomas Serviços Ambientais, Restauração e Carbono Ltda. (“Biomas”) was initially established by Suzano S.A.

On November 12, 2022, Suzano in partnership with Itaú Unibanco S.A, Marfrig Global Foods S.A., Rabobank Foundational Investments B.B., Santander Corretora de Seguros, Investimentos e Serviços S.A. and Vale S.A., announced an alliance during an event held at the Climate Conference, COP27, in Egypt, for the creation of a company focused entirely to forest restoration, conservation and preservation activities in Brazil.

After the transformation of Biomas into a joint venture, Suzano, together with Marfrig, Rabobank and Vale, made a commitment to invest R$20,000 each partner, in accordance to the terms of the respective investment agreements on February 27, 2023, once the conditions precedent and closing acts established in said agreements were fulfilled. Itaú and Santander made their respective capital contributions on March 21, 2023.

11

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

For the period ended June 30, 2023, the amount of R$30,000 (R$5,000 for each partner) was fully paid with a remaining balance of R$90,000 (R$15,000 for each partner) to be paid.

With the completion of the above investments, each company now holds 16.66% of equity interest at Biomas.

​

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

The Company’s unaudited condensed consolidated interim financial information, of the six-month period ended June 30, 2023, 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.

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, 2022 (Note 3.2.34). There were no changes in these judgments, estimates and assumptions compared to disclosed on December 31, 2022.

The unaudited condensed consolidated interim financial information 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.

​

12

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

3.SUMMARY OF SIGNIFICANT 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 subsidiary MMC Brasil and associates Ensyn 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, 2022, 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, 2023 and whose estimated impact was disclosed in the annual financial statements of December 31, 2022, as disclosed in the Note 3.1.

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.Accounting policies adopted

3.1.1.1. | Presentation of the financial statements – IAS 1 – Classification of liabilities as current and non-current (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted)

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.

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.

3.1.1.2. | Amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted)

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.

13

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

3.1.1.3. | Amendments to IAS 8 Definition of Accounting Estimates (applicable for annual periods beginning on/or after January 1, 2023)

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.

3.1.1.4. | Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction (applicable for annual periods beginning on/or after January 1, 2023)

The amendments introduce a further exception to the initial recognition exemption. Under the amendments, an entity may not apply the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences.

Depending on the applicable tax law, equal taxable and deductible temporary differences may arise from the initial recognition of an asset and liability in a transaction that is not a business combination and affects neither the accounting nor the taxable profit. For example, this may arise upon the recognition of a lease liability and the corresponding right-of-use asset, applying IFRS 16 at the commencement date of a lease.

Following the amendments to IAS 12, an entity is required to recognise the related deferred tax asset and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in IAS 12.

The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period, an entity recognises:

| (i) | A deferred tax asset (to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilized) and a deferred tax liability for all deductible and taxable temporary differences associated with:

| ● | Right-of-use assets and lease liabilities; and

| ● | Decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset.

| (ii) | The cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or another component of equity, as appropriate) at that date.

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

​

14

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

4.FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT

4.1.Financial risks management

4.1.1.Overview

In the six-month period ended June 30, 2023, 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, 2022 (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:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | June 30, | ​ | December 31,
​ |  | Note |  | 2023 |  | 2022
Assets | ​ | ​ | ​ | ​ | ​ | ​
Amortized cost | ​ | ​ | ​ | ​ | ​ | ​
Cash and cash equivalents | ​ | 5 | ​ | 11,860,415 | ​ | 9,505,951
Trade accounts receivable | ​ | 7 | ​ | 6,488,192 | ​ | 9,607,012
Dividends receivable | ​ | 11 | ​ | ​ | ​ | 7,334
Other assets (1) | ​ | ​ | ​ | 788,401 | ​ | 931,173
​ | ​ | ​ | ​ | 19,137,008 | ​ | 20,051,470
Fair value through other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​
Investments - Celluforce | ​ | 14.1 | ​ | 23,541 | ​ | 24,917
​ | ​ | ​ | ​ | 23,541 | ​ | 24,917
Fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 4.5.1 | ​ | 5,479,787 | ​ | 4,873,749
Marketable securities | ​ | 6 | ​ | 8,354,870 | ​ | 7,965,742
​ | ​ | ​ | ​ | 13,834,657 | ​ | 12,839,491
​ | ​ | ​ | ​ | 32,995,206 | ​ | 32,915,878
Liabilities | ​ | ​ | ​ | ​ | ​ | ​
Amortized cost | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts payable | ​ | 17 | ​ | 6,347,954 | ​ | 6,206,570
Loans, financing and debentures | ​ | 18.1 | ​ | 74,532,331 | ​ | 74,574,591
Lease liabilities | ​ | 19.2 | ​ | 6,195,984 | ​ | 6,182,530
Liabilities for assets acquisitions and subsidiaries | ​ | 23 | ​ | 280,864 | ​ | 2,062,322
Dividends payable | ​ | 11 | ​ | 2,678 | ​ | 5,094
Other liabilities (1) | ​ | ​ | ​ | 137,148 | ​ | 147,920
​ | ​ | ​ | ​ | 87,496,959 | ​ | 89,179,027
Fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 4.5.1 | ​ | 2,218,716 | ​ | 4,846,795
​ | ​ | ​ | ​ | 2,218,716 | ​ | 4,846,795
​ | ​ | ​ | ​ | 89,715,675 | ​ | 94,025,822
​ | ​ | ​ | ​ | 56,720,469 | ​ | 61,109,944

​

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

​

15

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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/ | ​ | June 30, | ​ | December 31,
​ |  | methodology |  | 2023 |  | 2022
Quoted in the secondary market | ​ | ​ | ​ | ​ | ​ | ​
In foreign currency | ​ | ​ | ​ | ​ | ​ | ​
Bonds | ​ | Secondary Market | ​ | 37,361,853 | ​ | 40,309,832
Estimated present value | ​ | ​ | ​ | ​ | ​ | ​
In foreign currency | ​ | ​ | ​ | ​ | ​ | ​
Export credits (“Prepayment”) | ​ | LIBOR | ​ | 16,760,316 | ​ | 17,724,315
Assets Financing | ​ | SOFR | ​ | 217,540 | ​ | 138,644
IFC - International Finance Corporation | ​ | SOFR | ​ | 3,105,751 | ​ | ​
In local currency | ​ | ​ | ​ | ​ | ​ | ​
BNDES – TJLP | ​ | DI 1 | ​ | 230,227 | ​ | 292,487
BNDES – TLP | ​ | DI 1 | ​ | 1,971,409 | ​ | 1,393,010
BNDES – Fixed | ​ | DI 1 | ​ | 10,219 | ​ | 21,656
BNDES – SELIC (“Special Settlement and Custody System”) | ​ | DI 1 | ​ | 644,710 | ​ | 575,129
BNDES - Currency basket | ​ | DI 1 | ​ | 4,122 | ​ | 10,866
CRA (“Agribusiness Receivables Certificate”) | ​ | DI 1/IPCA | ​ | 1,264,031 | ​ | 1,835,336
Debentures | ​ | DI 1 | ​ | 6,663,101 | ​ | 5,643,440
NCE (“Export Credit Notes”) | ​ | DI 1 | ​ | 1,381,393 | ​ | 1,384,396
NCR (“Rural Credit Notes”) | ​ | DI 1 | ​ | 293,475 | ​ | 294,089
Export credits (“Prepayment”) | ​ | DI 1 | ​ | 1,303,156 | ​ | 1,320,415
​ | ​ | ​ | ​ | 71,211,303 | ​ | 70,943,615

​

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

Management considers that, for its other financial 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, 2023, 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.

16

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Book | ​ | Future | ​ | Up to 1 | ​ | 1 - 2 | ​ | ​ | ​ | More than
​ |  | value |  | value |  | year |  | years |  | 2 - 5 years |  | 5 years
Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts payable | ​ | 6,347,954 | ​ | 6,347,954 | ​ | 6,347,954 | ​ | ​ | ​ | ​ | ​ | ​
Loans, financing and debentures | ​ | 74,532,331 | ​ | 101,685,556 | ​ | 9,107,311 | ​ | 12,248,908 | ​ | 29,960,769 | ​ | 50,368,568
Lease liabilities | ​ | 6,195,984 | ​ | 10,891,670 | ​ | 1,113,507 | ​ | 1,959,036 | ​ | 1,774,219 | ​ | 6,044,908
Liabilities for asset acquisitions and subsidiaries | ​ | 280,864 | ​ | 313,645 | ​ | 98,899 | ​ | 94,575 | ​ | 89,293 | ​ | 30,878
Derivative financial instruments | ​ | 2,218,716 | ​ | 3,125,242 | ​ | 527,889 | ​ | 827,564 | ​ | 1,740,146 | ​ | 29,643
Dividends payable | ​ | 2,678 | ​ | 2,678 | ​ | 2,678 | ​ | ​ | ​ | ​ | ​ | ​
Other liabilities | ​ | 137,148 | ​ | 137,148 | ​ | 52,585 | ​ | 84,563 | ​ | ​ | ​ | ​
​ | ​ | 89,715,675 | ​ | 122,503,893 | ​ | 17,250,823 | ​ | 15,214,646 | ​ | 33,564,427 | ​ | 56,473,997

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ | 2022
​ | ​ | Book | ​ | Future | ​ | Up to 1 | ​ | 1 - 2 | ​ | ​ | ​ | More than
​ |  | value |  | value |  | year |  | years |  | 2 - 5 years |  | 5 years
Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts payable | ​ | 6,206,570 | ​ | 6,206,570 | ​ | 6,206,570 | ​ | ​ | ​ | ​ | ​ | ​
Loans, financing and debentures | ​ | 74,574,591 | ​ | 105,341,912 | ​ | 6,823,274 | ​ | 7,899,772 | ​ | 39,476,527 | ​ | 51,142,339
Lease liabilities | ​ | 6,182,530 | ​ | 11,053,487 | ​ | 1,050,947 | ​ | 992,379 | ​ | 2,668,855 | ​ | 6,341,305
Liabilities for asset acquisitions and subsidiaries | ​ | 2,062,322 | ​ | 2,203,302 | ​ | 1,986,633 | ​ | 99,331 | ​ | 57,421 | ​ | 59,917
Derivative financial instruments | ​ | 4,846,795 | ​ | 6,515,262 | ​ | 728,070 | ​ | 1,341,108 | ​ | 4,299,970 | ​ | 146,114
Dividends payable | ​ | 5,094 | ​ | 5,094 | ​ | 5,094 | ​ | ​ | ​ | ​ | ​ | ​
Other liabilities | ​ | 147,920 | ​ | 147,920 | ​ | 61,500 | ​ | 86,420 | ​ | ​ | ​ | ​
​ | ​ | 94,025,822 | ​ | 131,473,547 | ​ | 16,862,088 | ​ | 10,419,010 | ​ | 46,502,773 | ​ | 57,689,675

​

4.3. Credit risk management

In the six-month period ended June 30, 2023, 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, 2022 (Note 4).

4.4.Market risk management

In the six-month period ended June 30, 2023, 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, 2022 (Note 4).

4.4.1.Exchange rate risk management

As disclosed in the financial statements for the year ended December 31, 2022 (Note 4), the Company enters into U.S.Dollar 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.

17

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

The assets and liabilities that are exposed to foreign currency, substantially in U.S. Dollars, are set forth below:

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Assets | ​ | ​ | ​ | ​
Cash and cash equivalents | ​ | 11,248,274 | ​ | 8,039,218
Marketable securities | ​ | 4,826,627 | ​ | 4,510,652
Trade accounts receivable | ​ | 4,845,044 | ​ | 7,612,768
Derivative financial instruments | ​ | 4,202,786 | ​ | 3,393,785
​ | ​ | 25,122,731 | ​ | 23,556,423
Liabilities | ​ | ​ | ​ | ​
Trade accounts payable | ​ | (2,028,936) | ​ | (2,030,806)
Loans and financing | ​ | (60,176,982) | ​ | (61,216,140)
Liabilities for asset acquisitions and subsidiaries | ​ | (186,058) | ​ | (2,053,259)
Derivative financial instruments | ​ | (2,136,399) | ​ | (4,698,323)
​ | ​ | (64,528,375) | ​ | (69,998,528)
​ | ​ | (39,405,644) | ​ | (46,442,105)

​

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 U.S.$ = R$4.8192).

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

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Effect on profit or loss
​ | ​ | Probable | ​ | Possible | ​ | Remote
​ |  | (base value) |  | (25%) |  | (50%)
Cash and cash equivalents | ​ | 11,248,274 | ​ | 2,812,069 | ​ | 5,624,137
Marketable securities | ​ | 4,826,627 | ​ | 1,206,657 | ​ | 2,413,314
Trade accounts receivable | ​ | 4,845,044 | ​ | 1,211,261 | ​ | 2,422,522
Trade accounts payable | ​ | (2,028,936) | ​ | (507,234) | ​ | (1,014,468)
Loans and financing | ​ | (60,176,982) | ​ | (15,044,246) | ​ | (30,088,491)
Liabilities for asset acquisitions and subsidiaries | ​ | (186,058) | ​ | (46,515) | ​ | (93,029)

​

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 positive 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, 2023.

18

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Effect on profit or loss
​ | ​ | Probable | ​ | Possible | ​ | Remote
​ |  | (base value) |  | 25% |  | 50%
Dollar/Real | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | ​ | ​ | ​ | ​ | ​
Derivative options | ​ | 3,201,865 | ​ | (3,777,232) | ​ | (7,621,974)
Derivative swaps | ​ | (450,678) | ​ | (1,728,220) | ​ | (3,442,041)
Derivative Non-Deliverable Forward (‘NDF’) Contracts | ​ | 159,434 | ​ | (286,048) | ​ | (572,176)
Embedded derivatives | ​ | 187,618 | ​ | (85,533) | ​ | (171,067)
NDF parity derivatives (1) | ​ | 140,411 | ​ | (47,180) | ​ | (84,699)
Commodity Derivatives | ​ | 22,421 | ​ | (5,607) | ​ | (11,212)
​ | ​ | ​ | ​ | ​ | ​ | ​
Dollar/Euro | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | ​ | ​ | ​ | ​ | ​
NDF parity derivatives (1) | ​ | 140,411 | ​ | (562,869) | ​ | (1,125,812)

​

(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.

Considering that on March 5, 2021, the Financial Conduct Authority (“FCA”) announced the discontinuation date of the 3-month LIBOR as June 30, 2023, the Company initiated negotiations of the terms for swapping the indexers of its debt contracts and related derivatives upon this announcement.

As of June 30, 2023, the Company had R$15,566 related to loan and financing contracts, and R$15,151 related to derivative contracts, and it conducted the contract amendment process with the counterparties of each contract to ensure that the terms and market best practices were adopted at the time of the index transition starting from June 2023. On July 1, 2023, the contracts will be indexed to SOFR, which has been adopted as the new reference interest rate by the capital market. This negotiation will not have a substantial impact on the balances presented in the loan and financing and derivative instrument categories.

The Company understands that it will not be necessary to change the risk management strategy due to the change of indexation of its financial contracts linked to LIBOR.

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 the London Interbank Offered Rate (“LIBOR”), 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.

19

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Effect on profit or loss
​ | ​ | ​ | ​ | Possible | ​ | Remote
​ |  | Probable |  | (25%) |  | (50%)
CDI/SELIC | ​ | ​ | ​ | ​ | ​ | ​
Cash and cash equivalents | ​ | 560,985 | ​ | 19,144 | ​ | 38,287
Marketable securities | ​ | 3,528,243 | ​ | 120,401 | ​ | 240,803
Loans and financing | ​ | 8,125,522 | ​ | 277,283 | ​ | 554,567
TJLP | ​ | ​ | ​ | ​ | ​ | ​
Loans and financing | ​ | 277,763 | ​ | 5,055 | ​ | 10,111
LIBOR | ​ | ​ | ​ | ​ | ​ | ​
Loans and financing | ​ | 15,645,428 | ​ | 216,902 | ​ | 433,803
SOFR | ​ | ​ | ​ | ​ | ​ | ​
Loans and financing | ​ | 3,115,211 | ​ | 41,030 | ​ | 82,060

​

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:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Effect on profit or loss
​ | ​ | ​ | ​ | Probable | ​ | Remote
​ |  | Probable |  | 25% |  | 50%
CDI | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​
Derivative options | ​ | 3,201,865 | ​ | (388,599) | ​ | (747,669)
Derivative swaps | ​ | (450,678) | ​ | (5,108) | ​ | (11,749)
LIBOR | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​
Derivative swaps | ​ | (450,678) | ​ | 260,364 | ​ | 520,442

​

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, 2023. 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:

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Effect on profit or loss
​ | ​ | Probable | ​ | Possible | ​ | Remote
​ |  | (base value) |  | (25%) |  | (50%)
Embedded derivative in a commitment to purchase standing wood, originating from a forest partnership agreement | ​ | 187,618 | ​ | (31,171) | ​ | (64,295)

​

20

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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.

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, 2022 (Note 4).

4.5.1.Outstanding derivatives by type of contract, including embedded derivatives

The positions of outstanding derivatives are set forth below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Notional value, net in U.S.$ | ​ | Fair value
​ | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022 |  | 2023 |  | 2022
Instruments as part of protection strategy | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operational hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ZCC | ​ | 4,815,050 | ​ | 6,866,800 | ​ | 3,201,865 | ​ | 1,596,089
NDF (R$ x US$) | ​ | 243,100 | ​ | 248,100 | ​ | 159,434 | ​ | (2,474)
NDF (€ x US$) | ​ | 399,328 | ​ | 544,702 | ​ | 140,411 | ​ | 161,055
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Debt hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Swap LIBOR to Fixed (US$) | ​ | 3,143,877 | ​ | 3,200,179 | ​ | 927,104 | ​ | 1,052,546
Swap IPCA to CDI (notional in Brazilian Reais) | ​ | 2,130,618 | ​ | 1,741,787 | ​ | 245,159 | ​ | 278,945
Swap IPCA to Fixed (US$) | ​ | ​ | ​ | 121,003 | ​ | ​ | ​ | (29,910)
Swap CDI x Fixed (US$) | ​ | 1,265,004 | ​ | 1,863,534 | ​ | (1,262,085) | ​ | (2,566,110)
Pre-fixed Swap to US$ (US$) | ​ | 350,000 | ​ | 350,000 | ​ | (360,856) | ​ | (503,605)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commodity Hedge | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Swap US-CPI (US$) (1) | ​ | 130,810 | ​ | 124,960 | ​ | 187,618 | ​ | 40,418
Swap VLSFO/Brent | ​ | 128,307 | ​ | ​ | ​ | 22,421 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | 3,261,071 | ​ | 26,954
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current assets | ​ | ​ | ​ | ​ | ​ | 3,747,881 | ​ | 3,048,493
Non-current assets | ​ | ​ | ​ | ​ | ​ | 1,731,906 | ​ | 1,825,256
Current liabilities | ​ | ​ | ​ | ​ | ​ | (483,512) | ​ | (667,681)
Non-current liabilities | ​ | ​ | ​ | ​ | ​ | (1,735,204) | ​ | (4,179,114)
​ | ​ | ​ | ​ | ​ | ​ | 3,261,071 | ​ | 26,954

​

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

21

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

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

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

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

| (v) | 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.

| (vi) | Zero-Cost Collar (“ZCC”): 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.

| (vii) | 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.

| (viii) | 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.

| (ix) | 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.

| (x) | 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.

The variation in the fair values of derivatives on June 30, 2023 compared to the fair values measured on December 31, 2022 are explained substantially by the appreciation of the Brazilian Real against the US Dollar and by settlements during the period. There were also impacts caused by the variations in the Pre, Foreign Exchange Coupon and LIBOR curves in the operations.

It is important to highlight that the outstanding agreements on June 30, 2023 are over-the-counter market operations, without any type of collateral margin or forced early settlement clause due to variations from market marking.

4.5.2.Fair value by maturity schedule

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
2023 | ​ | 2,413,838 | ​ | 2,380,812
2024 | ​ | 1,785,080 | ​ | 297,156
2025 | ​ | (477,814) | ​ | (1,225,193)
2026 onwards | ​ | (460,033) | ​ | (1,425,821)
​ | ​ | 3,261,071 | ​ | 26,954

​

22

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

4.5.3.Outstanding assets and liabilities derivatives positions

The outstanding derivatives positions are set forth below:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Notional value | ​ | Fair value
​ | ​ | ​ | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31,
​ |  | Currency |  | 2023 |  | 2022 |  | 2023 |  | 2022
Debt hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Swap CDI to Fixed (US$) | ​ | R$ | ​ | 4,623,091 | ​ | 7,081,545 | ​ | 368,657 | ​ | 617,835
Swap Pre-Fixed to US$ | ​ | R$ | ​ | 1,317,226 | ​ | 1,317,226 | ​ | ​ | ​ | 45,329
Swap LIBOR to Fixed (US$) | ​ | US$ | ​ | 3,143,877 | ​ | 3,200,000 | ​ | 927,104 | ​ | 1,052,546
Swap IPCA to CDI | ​ | IPCA | ​ | 2,294,552 | ​ | 2,041,327 | ​ | 325,275 | ​ | 427,417
Swap IPCA to US$ | ​ | IPCA | ​ | ​ | ​ | 610,960 | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,621,036 | ​ | 2,143,127
Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Swap CDI to Fixed (US$) | ​ | US$ | ​ | 1,265,000 | ​ | 1,863,534 | ​ | (1,630,742) | ​ | (3,183,945)
Swap Pre-Fixed to US$ | ​ | US$ | ​ | 350,000 | ​ | 350,000 | ​ | (360,856) | ​ | (548,934)
Swap LIBOR to Fixed (US$) | ​ | US$ | ​ | 3,143,877 | ​ | 3,200,000 | ​ | ​ | ​ | ​
Swap IPCA to CDI | ​ | R$ | ​ | 2,130,618 | ​ | 1,741,787 | ​ | (80,116) | ​ | (148,472)
Swap IPCA to US$ | ​ | US$ | ​ | ​ | ​ | 121,003 | ​ | ​ | ​ | (29,910)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,071,714) | ​ | (3,911,261)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (450,678) | ​ | (1,768,134)
Operational hedge | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Zero cost collar (US$ x R$) | ​ | US$ | ​ | 4,815,050 | ​ | 6,866,800 | ​ | 3,201,865 | ​ | 1,596,089
NDF (R$ x US$) | ​ | US$ | ​ | 243,100 | ​ | 248,100 | ​ | 159,434 | ​ | (2,474)
NDF (€ x US$) | ​ | US$ | ​ | 399,328 | ​ | 544,702 | ​ | 140,411 | ​ | 161,055
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,501,710 | ​ | 1,754,670
Commodity hedge | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Swap US-CPI (standing wood) (1) | ​ | US$ | ​ | 130,810 | ​ | 124,960 | ​ | 187,618 | ​ | 40,418
Swap VLSFO/Brent | ​ | US$ | ​ | 128,307 | ​ | ​ | ​ | 22,421 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 210,039 | ​ | 40,418
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,261,071 | ​ | 26,954

​

(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.

​

23

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

4.5.4.Fair value settled amounts

The settled derivatives positions are set forth below:

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Operational hedge | ​ | ​ | ​ | ​
Zero cost collar (R$ x US$) | ​ | 1,445,973 | ​ | 718,618
NDF (R$ x US$) | ​ | 18,538 | ​ | 8,301
NDF (€ x US$) | ​ | 50,679 | ​ | 7,113
​ | ​ | 1,515,190 | ​ | 734,032
​ | ​ | ​ | ​ | ​
Commodity hedge | ​ | 8,853 | ​ | ​
Swap VLSFO/other | ​ | 8,853 | ​ | ​
​ | ​ | ​ | ​ | ​
Debt hedge | ​ | ​ | ​ | ​
Swap CDI to Fixed (US$) | ​ | (283,888) | ​ | (261,570)
Swap IPCA to CDI (Brazilian Reais) | ​ | 158,092 | ​ | (5,180)
Swap IPCA to Fixed (US$) | ​ | (3,945) | ​ | 171
Swap Pre-Fixed to US$ | ​ | 52,746 | ​ | 54,128
Swap LIBOR to Fixed (US$) | ​ | 217,852 | ​ | (239,356)
​ | ​ | 140,857 | ​ | (451,807)
​ | ​ | 1,664,900 | ​ | 282,225

​

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, 2023, there were no changes between the 3 (three) levels of hierarchy and no transfers between levels 1, 2 and 3.

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ |  | Level 2 |  | Level 3 |  | Total
Assets | ​ | ​ | ​ | ​ | ​ | ​
At fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 5,479,787 | ​ | ​ | ​ | 5,479,787
Marketable securities | ​ | 8,354,870 | ​ | ​ | ​ | 8,354,870
​ | ​ | 13,834,657 | ​ | ​ | ​ | 13,834,657
​ | ​ | ​ | ​ | ​ | ​ | ​
At fair value through other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​
Other investments - CelluForce | ​ | ​ | ​ | 23,541 | ​ | 23,541
​ | ​ | ​ | ​ | 23,541 | ​ | 23,541
​ | ​ | ​ | ​ | ​ | ​ | ​
Biological assets | ​ | ​ | ​ | 16,914,120 | ​ | 16,914,120
​ | ​ | ​ | ​ | 16,914,120 | ​ | 16,914,120
Total assets | ​ | 13,834,657 | ​ | 16,937,661 | ​ | 30,772,318
​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​
At fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 2,218,716 | ​ | ​ | ​ | 2,218,716
​ | ​ | 2,218,716 | ​ | ​ | ​ | 2,218,716
Total liabilities | ​ | 2,218,716 | ​ | ​ | ​ | 2,218,716

24

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ | 2022
​ | ​ | Level 2 | ​ | Level 3 | ​ | Total
Assets | ​ | ​ | ​ | ​ | ​ | ​
At fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 4,873,749 | ​ | ​ | ​ | 4,873,749
Marketable securities | ​ | 7,965,742 | ​ | ​ | ​ | 7,965,742
​ | ​ | 12,839,491 | ​ | ​ | ​ | 12,839,491
​ | ​ | ​ | ​ | ​ | ​ | ​
At fair value through other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​
Other investments - CelluForce | ​ | ​ | ​ | 24,917 | ​ | 24,917
​ | ​ | ​ | ​ | 24,917 | ​ | 24,917
​ | ​ | ​ | ​ | ​ | ​ | ​
Biological assets | ​ | ​ | ​ | 14,632,186 | ​ | 14,632,186
​ | ​ | ​ | ​ | 14,632,186 | ​ | 14,632,186
Total assets | ​ | 12,839,491 | ​ | 14,657,103 | ​ | 27,496,594
​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​
At fair value through profit or loss | ​ | ​ | ​ | ​ | ​ | ​
Derivative financial instruments | ​ | 4,846,795 | ​ | ​ | ​ | 4,846,795
​ | ​ | 4,846,795 | ​ | ​ | ​ | 4,846,795
Total liabilities | ​ | 4,846,795 | ​ | ​ | ​ | 4,846,795

​

4.7.Climate change

In the annual financial statements for the year ended December 31, 2022, 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, 2023, except for the items presented in Note 4.7.1.

4.7.1.Opportunities linked to climate change and the sustainability strategy

4.7.1.1 Biomas

As disclosed in Note 1.2.6, Suzano and five other global companies created Biomas with objective of restoring, conserving and preserving native forests in Brazil.

The initiative aims to restore and protect, over a period of 20 years, native forest in some of Brazil´s most valuable ecosystems, such as the Amazon, Atlantic Forest and Cerrado biomes – The area is equivalent to the territory of Switzerland or the state of Rio de Janeiro, in Brazil.

The initiative aims to promote a sustainable business model from a financial perspective, enabling each restoration, conservation, and preservation projects to be viable through the commercialization of carbon credits, as removals and avoided emissions, reducing tons of CO2e from the atmosphere.

The first stage will involve the identification and prospecting of areas, promoting nurseries for the large-scale production of native trees, engaging local communities in Biomas activities, discussing the application of the project in public areas, partnering with carbon certification platforms and implementing pilot projects.

4.7.1.2Generation of carbon credits

The Company has ongoing carbon credit projects certifications, including:

| ● | Horizonte de Carbono Project, which aims to restore degraded areas through the reforestation of native and eucalyptus trees. On March 30, 2023, the certifier Verra completed the validation and verification of 1.9Mt CO2e of the Horizonte Project (VCS ID 3350), of which 10% will be allocated to the Verra reserve and 1.7Mt CO2e is eligible for the issuance of credits. The Company has not yet issued such credits.

25

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

The carbon credits are registered by Verra, an accredited company that holds a global platform, which is also responsible for the custody of the credits. This company has developed the Verified Carbon Standard (VCS) program, currently regarded as the global reference standard, in the best understanding of the company.

4.7.1.3Production of wood-based textile fiber

In May 2023, Woodspin, located in Finland, inaugurated the first factory producing sustainable, recyclable and fully biodegradable textile fiber from responsibly grown wood, the result of the joint venture between Spinnova and Suzano. This new type of “green fabric” has the potential to replace less sustainable materials used in many products. This unit will be used for market development and technology improvement.

For the construction and operation of textile fiber projects, Woodspin uses Suzano’s microfibrillated cellulose (MFC) as raw material.

4.8.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 | ​ | June 30, | ​ | December 31,
​ |  | p.a. % |  | 2023 |  | 2022
Cash and banks (1) | ​ | 5.34 | ​ | 10,327,055 | ​ | 8,064,193
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash equivalents | ​ | ​ | ​ | ​ | ​ | ​
Local currency | ​ | ​ | ​ | ​ | ​ | ​
Fixed-term deposits (compromised) | ​ | 97.30 of CDI | ​ | 560,985 | ​ | 1,441,758
​ | ​ | ​ | ​ | ​ | ​ | ​
Foreign currency | ​ | ​ | ​ | ​ | ​ | ​
Fixed-term deposits (2) | ​ | 6.01 | ​ | 972,375 | ​ | ​
​ | ​ | ​ | ​ | 11,860,415 | ​ | 9,505,951

​

(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.

​

(2) | Refers to Time Deposit applications, with maturity up to 90 days, which is a remunerated bank deposit with a specific maturity period and is subject to an insignificant risk of changes in value.

​

26

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

6.MARKETABLE SECURITIES

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Average yield | ​ | June 30, | ​ | December 31,
​ |  | p.a. % |  | 2023 |  | 2022
In local currency | ​ | ​ | ​ | ​ | ​ | ​
Private funds | ​ | 112.40 of CDI | ​ | 1,034,750 | ​ | 1,208,975
Private Securities (“CDBs”) | ​ | 100.51 of CDI | ​ | 2,052,353 | ​ | 1,827,012
CDBs - Escrow Account (1) | ​ | 100.24 of CDI | ​ | 441,140 | ​ | 419,103
​ | ​ | ​ | ​ | 3,528,243 | ​ | 3,455,090
Foreign currency | ​ | ​ | ​ | ​ | ​ | ​
Time deposits (2) | ​ | 6.39 | ​ | 4,563,527 | ​ | 4,386,589
Other | ​ | ​ | ​ | 263,100 | ​ | 124,063
​ | ​ | ​ | ​ | 4,826,627 | ​ | 4,510,652
​ | ​ | ​ | ​ | 8,354,870 | ​ | 7,965,742
​ | ​ | ​ | ​ | ​ | ​ | ​
Current | ​ | ​ | ​ | 7,913,730 | ​ | 7,546,639
Non-Current | ​ | ​ | ​ | 441,140 | ​ | 419,103

​

(1) | 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.

​

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

​

​

​

​

​

7.TRADE ACCOUNTS RECEIVABLE

7.1.Breakdown of balances

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Domestic customers | ​ | ​ | ​ | ​
Third parties | ​ | 1,599,377 | ​ | 1,915,745
Related parties (Note 11) (1) | ​ | 73,564 | ​ | 99,608
​ | ​ | ​ | ​ | ​
Foreign customers | ​ | ​ | ​ | ​
Third parties | ​ | 4,845,044 | ​ | 7,612,768
​ | ​ | ​ | ​ | ​
(-) Expected credit losses | ​ | (29,793) | ​ | (21,109)
​ | ​ | 6,488,192 | ​ | 9,607,012

​

(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, 2023, was R$4,227,031 (R$6,889,492 as of December 31, 2022).

27

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

7.2.Breakdown of trade accounts receivable by maturity

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Current | ​ | 5,432,105 | ​ | 8,652,376
Overdue | ​ | ​ | ​ | ​
Up to 30 days | ​ | 855,757 | ​ | 777,150
From 31 to 60 days | ​ | 44,915 | ​ | 74,253
From 61 to 90 days | ​ | 50,212 | ​ | 54,784
From 91 to 120 days | ​ | 9,921 | ​ | 20,975
From 121 to 180 days | ​ | 50,728 | ​ | 18,945
From 181 days | ​ | 44,554 | ​ | 8,529
​ | ​ | 6,488,192 | ​ | 9,607,012

​

7.3.Roll-forward of expected credit losses

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Opening balance | ​ | (21,109) | ​ | (34,763)
Additions | ​ | (10,464) | ​ | (5,228)
Reversals | ​ | 177 | ​ | 3,576
Write-offs | ​ | 1,536 | ​ | 12,355
Exchange rate variations | ​ | 67 | ​ | 2,951
Closing balance | ​ | (29,793) | ​ | (21,109)

​

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

The Company has 1 (one) customer responsible for 12.37% of the net sales of pulp segment on June 30, 2023 (10.67% on December 31, 2022) and no main customer responsible for more than 10% of the net sales of paper segment on June 30, 2023 and December 31, 2022.

​

8.INVENTORIES

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Finished goods | ​ | ​ | ​ | ​
Pulp | ​ | ​ | ​ | ​
Domestic (Brazil) | ​ | 501,037 | ​ | 616,415
Foreign | ​ | 1,711,100 | ​ | 1,426,064
Paper | ​ | ​ | ​ | ​
Domestic (Brazil) | ​ | 535,026 | ​ | 358,973
Foreign | ​ | 245,267 | ​ | 192,671
Work in process | ​ | 119,644 | ​ | 93,964
Raw materials | ​ | ​ | ​ | ​
Wood | ​ | 1,586,058 | ​ | 1,480,616
Operating supplies and packaging | ​ | 745,413 | ​ | 716,089
Spare parts and other | ​ | 978,951 | ​ | 843,469
​ | ​ | 6,422,496 | ​ | 5,728,261

​

Inventories are disclosed net of estimated losses.

28

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

8.1.Roll-forward of estimated losses

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Opening balance | ​ | (105,989) | ​ | (91,258)
Additions | ​ | (23,859) | ​ | (89,552)
Reversals | ​ | 24,713 | ​ | 33,492
Write-offs | ​ | 17,893 | ​ | 41,329
Closing balance | ​ | (87,242) | ​ | (105,989)

​

On June 30, 2023 and December 31, 2022, there were no inventory items pledged as collateral.

​

9.RECOVERABLE TAXES

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
IRPJ/CSLL – prepayments and withheld taxes | ​ | 328,747 | ​ | 179,812
PIS/COFINS – on acquisitions of property, plant and equipment (1) | ​ | 87,955 | ​ | 89,334
PIS/COFINS – operations | ​ | 615,322 | ​ | 523,970
PIS/COFINS – exclusions from ICMS (2) | ​ | 458,319 | ​ | 570,945
ICMS – on acquisitions of property, plant and equipment (3) | ​ | 358,999 | ​ | 167,286
ICMS – operations (4) | ​ | 1,446,388 | ​ | 1,423,375
Reintegra program (5) | ​ | 76,549 | ​ | 65,971
Other taxes and contributions | ​ | 39,690 | ​ | 39,057
Provision for loss on ICMS credits (6) | ​ | (1,306,768) | ​ | (1,103,807)
​ | ​ | 2,105,201 | ​ | 1,955,943
​ | ​ | ​ | ​ | ​
Current | ​ | 747,847 | ​ | 549,580
Non-current | ​ | 1,357,354 | ​ | 1,406,363

​

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, details on the initial recognition were disclosed in the financial statements of December 31, 2021.

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.

29

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

9.1.Roll-forward of provision for loss

​

​ | ​ | ​ | ​ | ​
​ |  | ICMS
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
Opening balance | ​ | (1,103,807) | ​ | (1,064,268)
Addition (1) | ​ | (217,782) | ​ | (221,903)
Write-off | ​ | ​ | ​ | 18,464
Reversal | ​ | 14,821 | ​ | 163,900
Closing balance | ​ | (1,306,768) | ​ | (1,103,807)

​

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.

​

​

​

10.ADVANCES TO SUPPLIERS

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Forestry development program and partnerships | ​ | 1,981,199 | ​ | 1,592,132
Advance to suppliers - others | ​ | 103,181 | ​ | 108,146
​ | ​ | 2,084,380 | ​ | 1,700,278
​ | ​ | ​ | ​ | ​
Current | ​ | 103,181 | ​ | 108,146
Non-current | ​ | 1,981,199 | ​ | 1,592,132

​

In the annual financial statements for the year ended December 31, 2022, the characteristics of the advances were disclosed, which did not change during the six-month period ended June 30, 2023.

​

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, 2023, 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, 2023 ​ |

​

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Assets | ​ | Liabilities | ​ | Sales (purchases), net
​ | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Transactions with controlling shareholders | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Suzano Holding | ​ | ​ | ​ | 5 | ​ | ​ | ​ | ​ | ​ | 22 | ​ | 30
​ | ​ | ​ | ​ | 5 | ​ | ​ | ​ | ​ | ​ | 22 | ​ | 30
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Transactions with companies of the Suzano Group and other related parties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Management (expect compensation - Note 11.2) | ​ | ​ | ​ | ​ | ​ | (4) | ​ | (5) | ​ | (810) | ​ | (15)
Bexma Participações Ltda | ​ | ​ | ​ | 1 | ​ | ​ | ​ | ​ | ​ | 4 | ​ | 4
Bizma Investimentos Ltda | ​ | ​ | ​ | 1 | ​ | ​ | ​ | ​ | ​ | 3 | ​ | 4
Civelec Participações Ltda | ​ | 4,575 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,825 | ​ | ​
Fundação Arymax | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1 | ​ | 1
Ibema Companhia Brasileira de Papel (1) | ​ | 73,564 | ​ | 106,940 | ​ | (12,033) | ​ | (3,705) | ​ | 108,105 | ​ | 90,916
Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável | ​ | ​ | ​ | 3 | ​ | (1,124) | ​ | (66) | ​ | (3,959) | ​ | (2,267)
IPLF Holding S.A. | ​ | ​ | ​ | 23 | ​ | ​ | ​ | ​ | ​ | 2 | ​ | 2
Nemonorte Imóveis e Participações Ltda | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (88) | ​ | (105)
​ | ​ | 78,139 | ​ | 106,968 | ​ | (13,161) | ​ | (3,776) | ​ | 108,083 | ​ | 88,540
​ | ​ | 78,139 | ​ | 106,973 | ​ | (13,161) | ​ | (3,776) | ​ | 108,105 | ​ | 88,570
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts receivable (Note 7) | ​ | 73,564 | ​ | 99,608 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dividends receivable | ​ | ​ | ​ | 7,334 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other assets | ​ | 4,575 | ​ | 31 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Trade accounts payable (Note 17) | ​ | ​ | ​ | ​ | ​ | (13,161) | ​ | (3,776) | ​ | ​ | ​ | ​
​ | ​ | 78,139 | ​ | 106,973 | ​ | (13,161) | ​ | (3,776) | ​ | ​ | ​ | ​

​

1) Refers mainly to the sale of pulp.

​

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:

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Short-term benefits | ​ | ​ | ​ | ​
Salary or compensation | ​ | 23,822 | ​ | 24,741
Direct and indirect benefits | ​ | 1,194 | ​ | 464
Bonus | ​ | 4,724 | ​ | 3,516
​ | ​ | 29,740 | ​ | 28,721
Long-term benefits | ​ | ​ | ​ | ​
Share-based compensation plan | ​ | 12,407 | ​ | 25,726
​ | ​ | 12,407 | ​ | 25,726
​ | ​ | 42,147 | ​ | 54,447

​

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.

31

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

12.INCOME AND SOCIAL CONTRIBUTION TAXES

12.1.Deferred 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.

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, 2023. There is no provision for tax related to the non-double taxation profits of such subsidiary in 2022.

32

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

12.1.1.Deferred income and social contribution taxes

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Tax loss | ​ | 1,203,724 | ​ | 1,207,096
Negative tax basis of social contribution | ​ | 453,538 | ​ | 445,250
​ | ​ | ​ | ​ | ​
Assets - temporary differences | ​ | ​ | ​ | ​
Provision for judicial liabilities | ​ | 292,460 | ​ | 268,596
Operating provisions and other losses | ​ | 1,030,664 | ​ | 999,028
Exchange rate variations | ​ | 2,369,677 | ​ | 4,297,503
Amortization of fair value adjustments arising from business combinations | ​ | 665,983 | ​ | 680,142
Unrealized profit on inventories | ​ | 164,996 | ​ | 363,052
Leases | ​ | 328,682 | ​ | 364,838
​ | ​ | 6,509,724 | ​ | 8,625,505
​ | ​ | ​ | ​ | ​
Liabilities - temporary differences | ​ | ​ | ​ | ​
Goodwill - tax benefit on unamortized goodwill | ​ | 1,161,410 | ​ | 1,023,103
Property, plant and equipment - deemed cost | ​ | 1,174,570 | ​ | 1,217,349
Depreciation accelerated for tax-incentive reason (1) | ​ | 834,389 | ​ | 869,997
Capitalized loan costs | ​ | 404,955 | ​ | 210,834
Fair value of biological assets | ​ | 1,027,008 | ​ | 703,274
Deferred taxes, net of fair value adjustments | ​ | 384,016 | ​ | 398,950
Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis) | ​ | 155,828 | ​ | 194,121
Derivatives gains (“MtM”) | ​ | 1,108,764 | ​ | 9,164
Provision of deferred taxes on results of subsidiaries abroad | ​ | 98,984 | ​ | ​
Other temporary differences | ​ | 23,539 | ​ | 13,416
​ | ​ | 6,373,463 | ​ | 4,640,208
​ | ​ | ​ | ​ | ​
Non-current assets | ​ | 147,638 | ​ | 3,986,415
Non-current liabilities | ​ | 11,377 | ​ | 1,118

​

1)Accelerated 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, 2023 ​ |

​

​

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

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Tax loss carried forward | ​ | 4,814,896 | ​ | 4,828,384
Negative tax basis of social contribution carried forward | ​ | 5,039,311 | ​ | 4,947,222

​

12.1.3.Roll-forward of deferred tax assets

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Opening balance | ​ | 3,985,297 | ​ | 8,729,929
Tax loss | ​ | (3,372) | ​ | 50,220
Negative tax basis of social contribution | ​ | 8,288 | ​ | 34,176
Provision for judicial liabilities | ​ | 23,864 | ​ | 19,251
Operating provisions and other losses | ​ | 31,636 | ​ | 33,898
Exchange rate variation | ​ | (1,927,826) | ​ | (2,257,699)
Derivative gains (“MtM”) | ​ | (1,099,600) | ​ | (2,202,857)
Amortization of fair value adjustments arising from business combinations | ​ | 775 | ​ | 8,970
Unrealized profit on inventories | ​ | (198,056) | ​ | 64,164
Leases | ​ | (36,156) | ​ | (8,534)
Goodwill - tax benefit on unamortized goodwill | ​ | (138,307) | ​ | (276,614)
Property, plant and equipment - deemed cost | ​ | 42,779 | ​ | 99,510
Depreciation accelerated for tax-incentive reason | ​ | 35,608 | ​ | 74,952
Capitalized loan costs | ​ | (194,121) | ​ | (111,435)
Fair value of biological assets | ​ | (323,734) | ​ | (272,308)
Deferred taxes on the results of subsidiaries abroad | ​ | (98,984) | ​ | ​
Credits on exclusion of ICMS from the PIS/COFINS tax base | ​ | 38,293 | ​ | 3,906
Other temporary differences | ​ | (10,123) | ​ | (4,232)
Closing balance | ​ | 136,261 | ​ | 3,985,297

34

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

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

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Net income (loss) before taxes | ​ | 14,380,751 | ​ | 13,937,137
Income tax and social contribution benefit (expense) at the statutory nominal rate of 34% | ​ | (4,889,455) | ​ | (4,738,627)
​ | ​ | ​ | ​ | ​
Tax effect on permanent differences | ​ | ​ | ​ | ​
Taxation (difference) on profits of subsidiaries in Brazil and abroad (1) | ​ | 815,768 | ​ | 1,473,037
Equity method | ​ | 143 | ​ | 3,164
Thin capitalization (2) | ​ | (27,114) | ​ | (198,725)
Credit related to the Reintegra Program | ​ | 3,694 | ​ | 3,677
Director bonuses | ​ | (3,481) | ​ | (11,176)
Tax incentives | ​ | 41,769 | ​ | 22,464
Donations/Fines – Other | ​ | (1,659) | ​ | (3,052)
​ | ​ | (4,060,335) | ​ | (3,449,238)
Income tax | ​ | ​ | ​ | ​
Current | ​ | (193,265) | ​ | (116,819)
Deferred | ​ | (2,830,430) | ​ | (2,446,211)
​ | ​ | (3,023,695) | ​ | (2,563,030)
Social Contribution | ​ | ​ | ​ | ​
Current | ​ | (17,738) | ​ | (5,818)
Deferred | ​ | (1,018,902) | ​ | (880,390)
​ | ​ | (1,036,640) | ​ | (886,208)
Income and social contribution benefits (expenses) for the period | ​ | (4,060,335) | ​ | (3,449,238)
​ | ​ | ​ | ​ | ​
Effective rate of income and social contribution tax expenses | ​ | 28.23% | ​ | 24.75%

​

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, 2023 and June 30, 2022, 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”) | ​ | ​ | ​ | ​
Mucuri (BA) - Line 1 |  | Suzano |  | 2024
Mucuri (BA) - Line 2 |  | Suzano |  | 2027
Eunápolis (BA) |  | Veracel |  | 2025
Imperatriz (MA) |  | Suzano |  | 2024
Aracruz (ES) |  | Portocel |  | 2030
Aracruz (ES) |  | Suzano |  | 2031
​ | ​ | ​ | ​ | ​
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, 2023 ​ |

​

​

13.BIOLOGICAL ASSETS

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

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
Opening balance |  | 14,632,186 |  | 12,248,732
Additions | ​ | 2,899,032 | ​ | 4,957,380
Depletions | ​ | (1,805,371) | ​ | (3,665,057)
Gain on fair value adjustments | ​ | 1,256,315 | ​ | 1,199,759
Disposals | ​ | (36,278) | ​ | (82,331)
Other write-offs | ​ | (31,764) | ​ | (26,297)
Closing balance | ​ | 16,914,120 | ​ | 14,632,186

​

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.

The assumptions such as the average annual growth (“IMA”), discount rate, and average gross selling price of eucalyptus, stand out as being the most sensitive, where increases or reductions in these assumptions could generate significant gains or losses in the measurement of fair value.

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;

| 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 used in cash flows is measured based on the capital structure and other economic assumptions of an independent market participant in the sale of standing wood (forests).

The table below discloses the measurement of the premises adopted:

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Planted useful area (hectare) | ​ | 1,105,168 | ​ | 1,097,081
Mature assets | ​ | 181,573 | ​ | 134,752
Immature assets | ​ | 923,595 | ​ | 962,329
Average annual growth (IMA) - m3/hectare /year | ​ | 37.61 | ​ | 37.07
Average gross sale price of eucalyptus - R$/m3 | ​ | 97.34 | ​ | 90.16
Discount rate - % (post-tax) | ​ | 8.8% | ​ | 9.1%

​

36

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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$1,256,315 recognized in other operating income (expenses), net (Note 30).

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Physical changes | ​ | 432,212 | ​ | (37,088)
Price | ​ | 824,103 | ​ | 1,236,847
​ | ​ | 1,256,315 | ​ | 1,199,759

​

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 possible occurrences and losses.

The Company has no biological assets pledged for the six-month period ended June 30, 2023 and the year ended December 31, 2022.

​

14.INVESTMENTS

14.1.Investments breakdown

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Investments in associates and joint ventures | ​ | 383,500 | ​ | 354,200
Goodwill | ​ | 233,228 | ​ | 233,399
Other investments evaluated at fair value through other comprehensive income - Celluforce | ​ | 23,541 | ​ | 24,917
​ | ​ | 640,269 | ​ | 612,516

​

14.2.Investments in associates and joint ventures

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Information of joint ventures as at | ​ | Company Participation
​ | ​ | June 30, | ​ | ​ | ​ | ​ | ​ | In the income(expenses) for
​ | ​ | 2023 | ​ | Carrying amount | ​ | the period
​ | ​ | ​ | ​ | Income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | (expenses) | ​ | Participation | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | of the | ​ | equity | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | June 30,
​ |  | Equity |  | period |  | (%) | ​ | 2023 |  | 2022 |  | 2023 |  | 2022
Associate | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ensyn Corporation | ​ | 2,684 | ​ | (16,508) | ​ | 26.07% | ​ | 700 | ​ | 1,250 | ​ | (4,304) | ​ | 5,597
Spinnova Plc (1) | ​ | 526,204 | ​ | ​ | ​ | 19.03% | ​ | 100,137 | ​ | 113,079 | ​ | (6,706) | ​ | (4,939)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 100,837 | ​ | 114,329 | ​ | (11,010) | ​ | 658
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Joint ventures | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Domestic (Brazil) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Biomas | ​ | 28,962 | ​ | (1,051) | ​ | 16.66% | ​ | 4,825 | ​ | ​ | ​ | (175) | ​ | ​
Ibema Companhia Brasileira de Papel | ​ | 366,704 | ​ | 76,069 | ​ | 49.90% | ​ | 182,985 | ​ | 158,996 | ​ | 21,524 | ​ | 8,764
Foreign | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
F&E Technologies LLC | ​ | 9,928 | ​ | ​ | ​ | 50.00% | ​ | 4,964 | ​ | 5,230 | ​ | ​ | ​ | ​
Woodspin Oy | ​ | 179,778 | ​ | (19,376) | ​ | 50.00% | ​ | 89,889 | ​ | 75,645 | ​ | (9,688) | ​ | (1)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 282,663 | ​ | 239,871 | ​ | 11,661 | ​ | 8,763
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other movements | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,541 | ​ | 24,917 | ​ | (232) | ​ | (114)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,541 | ​ | 24,917 | ​ | (232) | ​ | (114)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 407,041 | ​ | 379,117 | ​ | 419 | ​ | 9,307

​

1) | The average share price quoted on the Nasdaq First North Growth Market (NFNGM) was EUR 4.91 (four euros and ninety-one cents) on June 30, 2023.

​

37

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

​

15.PROPERTY, PLANT AND EQUIPMENT

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Machinery, | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | equipment and | ​ | Work in | ​ | ​ | ​ | ​
​ |  | Land |  | Buildings |  | facilities |  | progress |  | Other (1) |  | Total
Average rate % | ​ | ​ | ​ | 3.52 | ​ | 6.24 | ​ | ​ | ​ | 17.41 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accumulated cost | ​ | 9,791,102 | ​ | 9,415,818 | ​ | 43,949,632 | ​ | 1,603,915 | ​ | 1,104,601 | ​ | 65,865,068
Accumulated depreciation | ​ | ​ | ​ | (3,577,097) | ​ | (23,344,836) | ​ | ​ | ​ | (773,432) | ​ | (27,695,365)
Balance as of December 31, 2021 | ​ | 9,791,102 | ​ | 5,838,721 | ​ | 20,604,796 | ​ | 1,603,915 | ​ | 331,169 | ​ | 38,169,703
Additions | ​ | 5,089 | ​ | 516 | ​ | 381,741 | ​ | 11,220,806 | ​ | 15,832 | ​ | 11,623,984
Additions of merged companies | ​ | 3,829,344 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,829,344
Write-offs | ​ | (69,773) | ​ | (10,613) | ​ | (58,435) | ​ | ​ | ​ | (3,384) | ​ | (142,205)
Depreciation | ​ | ​ | ​ | (310,429) | ​ | (2,367,163) | ​ | ​ | ​ | (124,464) | ​ | (2,802,056)
Transfers | ​ | 930,646 | ​ | 246,782 | ​ | 1,057,714 | ​ | (2,451,570) | ​ | 194,292 | ​ | (22,136)
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 (2) | ​ | 11,504 | ​ | ​ | ​ | 233,146 | ​ | 6,159,347 | ​ | 4,567 | ​ | 6,408,564
Amounts from the acquisition of MMC Brasil (3) | ​ | 4,572 | ​ | 110,965 | ​ | 451,969 | ​ | 8,306 | ​ | 13,353 | ​ | 589,165
Write-offs | ​ | (23,121) | ​ | (30,925) | ​ | (31,743) | ​ | ​ | ​ | (57,907) | ​ | (143,696)
Depreciation | ​ | ​ | ​ | (152,674) | ​ | (1,236,907) | ​ | ​ | ​ | (65,881) | ​ | (1,455,462)
Transfers | ​ | 255,036 | ​ | 158,860 | ​ | 1,051,866 | ​ | (1,609,709) | ​ | 117,050 | ​ | (26,897)
Accumulated cost | ​ | 14,734,399 | ​ | 9,852,001 | ​ | 46,791,386 | ​ | 14,931,095 | ​ | 1,347,625 | ​ | 87,656,506
Accumulated depreciation | ​ | ​ | ​ | (4,000,798) | ​ | (26,704,402) | ​ | ​ | ​ | (922,998) | ​ | (31,628,198)
Balance as of June 30, 2023 | ​ | 14,734,399 | ​ | 5,851,203 | ​ | 20,086,984 | ​ | 14,931,095 | ​ | 424,627 | ​ | 56,028,308

​

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$649,116 is a non-cash effect in the period.

3) | On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.)

On June 30, 2023, 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, 2023, property, plant and equipment items pledged as collateral for loan transactions and legal proceedings, consisting mainly of the units of Suzano and Três Lagoas totalling R$12,856,211 (R$12,773,662 in the same units as at December 31, 2022).

15.2.Capitalized expenses

For the six-month period ended June 30, 2023, the Company capitalized loan costs in the amount of R$511,650 (R$359,407 as of December 31, 2022). The weighted average interest rate, adjusted by the equalization of the exchange rate effects, utilized to determine the capitalized amount was 11.78% p.a. (12.49% p.a. as of December 31, 2022).

​

38

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

16.INTANGIBLE

16.1.Goodwill and intangible assets with indefinite useful lives

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Goodwill - Facepa | ​ | 119,332 | ​ | 119,332
Goodwill - Fibria | ​ | 7,897,051 | ​ | 7,897,051
Goodwill - MMC Brasil (1) | ​ | 182,798 | ​ | ​
Other (2) | ​ | 4,018 | ​ | 3,405
​ | ​ | 8,203,199 | ​ | 8,019,788

​

1)Refers to the goodwill of the MMC Brasil business combination, whose allocation of the purchase price is disclosed in note 1.2.3.

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, 2023, 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

​

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | June 30, | ​ | December 31,
​ | ​ | ​ | ​ | 2023 | ​ | 2022
Opening balance | ​ | ​ | ​ | 7,173,183 | ​ | 8,014,740
Additions | ​ | ​ | ​ | 197 | ​ | 90,499
Fair value adjustment MMC Brasil (1) | ​ | ​ | ​ | 189,655 | ​ | ​
Write-offs | ​ | ​ | ​ | ​ | ​ | (51)
Amortization | ​ | ​ | ​ | (489,650) | ​ | (966,796)
Transfers and others | ​ | ​ | ​ | 35,563 | ​ | 34,791
Closing balance | ​ | ​ | ​ | 6,908,948 | ​ | 7,173,183
Represented by | ​ | Average rate % | ​ | ​ | ​ | ​
Non-competition agreements | ​ | 5.00 | ​ | 4,971 | ​ | 5,128
Port concessions | ​ | 4.30 | ​ | 547,242 | ​ | 554,832
Lease agreements | ​ | 16.90 | ​ | 10,624 | ​ | 14,374
Supplier agreements | ​ | 12.90 | ​ | 48,146 | ​ | 55,554
Port service contracts | ​ | 4.20 | ​ | 564,501 | ​ | 579,289
Cultivars | ​ | 14.30 | ​ | 50,980 | ​ | 61,176
Trademarks and patents(1) | ​ | 9.05 | ​ | 199,024 | ​ | 10,935
Customer portfolio | ​ | 9.10 | ​ | 5,336,369 | ​ | 5,746,860
Supplier agreements | ​ | 17.60 | ​ | 16,142 | ​ | 21,427
Software | ​ | 20.00 | ​ | 122,013 | ​ | 113,946
Other | ​ | 5.75 | ​ | 8,936 | ​ | 9,662
​ | ​ | ​ | ​ | 6,908,948 | ​ | 7,173,183
​ | ​ | ​ | ​ | ​ | ​ | ​
Cost | ​ | ​ | ​ | 12,229,915 | ​ | 12,004,503
Amortization | ​ | ​ | ​ | (5,320,967) | ​ | (4,831,320)
Closing balance | ​ | ​ | ​ | 6,908,948 | ​ | 7,173,183

​

1)On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.)

​

39

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

17.TRADE ACCOUNTS PAYABLE

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
In local currency | ​ | ​ | ​ | ​
Related party (Note 11.1) (1) | ​ | 13,161 | ​ | 3,776
Third party (2)(3) | ​ | 4,305,857 | ​ | 4,171,988
In foreign currency | ​ | ​ | ​ | ​
Third party (3) | ​ | 2,028,936 | ​ | 2,030,806
​ | ​ | 6,347,954 | ​ | 6,206,570

​

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

2) | 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, 2023 was R$243,229 (R$416,643 at December 31, 2022).

3) | Within the balance of suppliers, the following balances refer to the Cerrado Project, R$988,892 (R$625,645 on December 31, 2022) in local currency and R$1,656,702 (R$1,370,833 on December 31, 2022) in foreign currency.

​

18.LOANS, FINANCING AND DEBENTURES

18.1.Breakdown by type

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Current | ​ | Non-current | ​ | Total
​ | ​ | ​ | ​ | Average | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | annual | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | interest rate - | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | December 31,
Type | ​ | Interest rate | ​ | % | ​ | 2023 | ​ | 2022 | ​ | 2023 | ​ | 2022 | ​ | 2023 | ​ | 2022
In foreign currency | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
BNDES | ​ | UMBNDES | ​ | 5.4 | ​ | 4,174 | ​ | 11,207 | ​ | ​ | ​ | ​ | ​ | 4,174 | ​ | 11,207
Bonds | ​ | Fixed | ​ | 5.0 | ​ | 832,242 | ​ | 907,059 | ​ | 39,928,218 | ​ | 43,218,286 | ​ | 40,760,460 | ​ | 44,125,345
Export credits (“export prepayments”) | ​ | LIBOR/Fixed | ​ | 6.2 | ​ | 1,719,005 | ​ | 156,156 | ​ | 14,597,783 | ​ | 16,779,064 | ​ | 16,316,788 | ​ | 16,935,220
Assets financing | ​ | SOFR | ​ | 3.6 | ​ | 44,320 | ​ | 26,755 | ​ | 177,526 | ​ | 113,217 | ​ | 221,846 | ​ | 139,972
IFC - International Finance Corporation | ​ | SOFR | ​ | 5.9 | ​ | 1,845 | ​ | ​ | ​ | 2,850,036 | ​ | ​ | ​ | 2,851,881 | ​ | ​
Others | ​ | ​ | ​ | ​ | ​ | 10,647 | ​ | 5,980 | ​ | ​ | ​ | ​ | ​ | 10,647 | ​ | 5,980
​ | ​ | ​ | ​ | ​ | ​ | 2,612,233 | ​ | 1,107,157 | ​ | 57,553,563 | ​ | 60,110,567 | ​ | 60,165,796 | ​ | 61,217,724
In local currency | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
BNDES | ​ | TJLP | ​ | 8.4 | ​ | 55,034 | ​ | 69,495 | ​ | 221,302 | ​ | 246,004 | ​ | 276,336 | ​ | 315,499
BNDES | ​ | TLP | ​ | 10.7 | ​ | 53,908 | ​ | 41,640 | ​ | 2,346,197 | ​ | 1,775,991 | ​ | 2,400,105 | ​ | 1,817,631
BNDES | ​ | Fixed | ​ | 4.5 | ​ | 8,563 | ​ | 18,666 | ​ | 2,004 | ​ | 4,011 | ​ | 10,567 | ​ | 22,677
BNDES | ​ | SELIC | ​ | 13.3 | ​ | 67,951 | ​ | 67,115 | ​ | 836,034 | ​ | 814,320 | ​ | 903,985 | ​ | 881,435
CRA (“Agribusiness Receivables Certificates”) | ​ | CDI/IPCA | ​ | 9.6 | ​ | 1,269,990 | ​ | 1,829,966 | ​ | ​ | ​ | ​ | ​ | 1,269,990 | ​ | 1,829,966
NCE (“Export credit notes”) | ​ | CDI | ​ | 11.0 | ​ | 78,548 | ​ | 76,463 | ​ | 1,378,261 | ​ | 1,277,616 | ​ | 1,456,809 | ​ | 1,354,079
NCR (“Rural producer certificates”) | ​ | CDI | ​ | 10.7 | ​ | 12,981 | ​ | 13,144 | ​ | 274,265 | ​ | 274,127 | ​ | 287,246 | ​ | 287,271
Export credits (“export prepayments”) | ​ | Fixed | ​ | 8.1 | ​ | 1,339,409 | ​ | 77,694 | ​ | ​ | ​ | 1,315,813 | ​ | 1,339,409 | ​ | 1,393,507
Debentures | ​ | CDI | ​ | 11.7 | ​ | 33,926 | ​ | 33,689 | ​ | 6,388,162 | ​ | 5,421,113 | ​ | 6,422,088 | ​ | 5,454,802
​ | ​ | ​ | ​ | ​ | ​ | 2,920,310 | ​ | 2,227,872 | ​ | 11,446,225 | ​ | 11,128,995 | ​ | 14,366,535 | ​ | 13,356,867
​ | ​ | ​ | ​ | ​ | ​ | 5,532,543 | ​ | 3,335,029 | ​ | 68,999,788 | ​ | 71,239,562 | ​ | 74,532,331 | ​ | 74,574,591
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest on financing | ​ | ​ | ​ | ​ | ​ | 1,141,837 | ​ | 1,238,623 | ​ | ​ | ​ | ​ | ​ | 1,141,837 | ​ | 1,238,623
Non-current funding | ​ | ​ | ​ | ​ | ​ | 4,390,706 | ​ | 2,096,406 | ​ | 68,999,788 | ​ | 71,239,562 | ​ | 73,390,494 | ​ | 73,335,968
​ | ​ | ​ | ​ | ​ | ​ | 5,532,543 | ​ | 3,335,029 | ​ | 68,999,788 | ​ | 71,239,562 | ​ | 74,532,331 | ​ | 74,574,591

​

40

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

41

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

18.2.Breakdown by maturity – non - current

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2029 | ​ | ​
​ |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | onwards |  | Total
In foreign currency | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Bonds | ​ | 5,970 | ​ | 1,640,973 | ​ | 2,495,454 | ​ | 3,350,524 | ​ | 2,406,200 | ​ | 30,029,097 | ​ | 39,928,218
Export credits (“export prepayments”) | ​ | 894,202 | ​ | 5,254,429 | ​ | 4,656,085 | ​ | 3,793,067 | ​ | ​ | ​ | ​ | ​ | 14,597,783
Assets financing | ​ | 22,774 | ​ | 46,987 | ​ | 48,860 | ​ | 48,123 | ​ | 10,782 | ​ | ​ | ​ | 177,526
IFC - International Finance Corporation | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 187,413 | ​ | 883,520 | ​ | 1,779,103 | ​ | 2,850,036
​ | ​ | 922,946 | ​ | 6,942,389 | ​ | 7,200,399 | ​ | 7,379,127 | ​ | 3,300,502 | ​ | 31,808,200 | ​ | 57,553,563
In local currency | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
BNDES – TJLP | ​ | 22,052 | ​ | 98,809 | ​ | 85,571 | ​ | 7,090 | ​ | 3,590 | ​ | 4,190 | ​ | 221,302
BNDES – TLP | ​ | 21,408 | ​ | 60,963 | ​ | 80,573 | ​ | 141,272 | ​ | 138,439 | ​ | 1,903,542 | ​ | 2,346,197
BNDES – Fixed | ​ | 2,004 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,004
BNDES – SELIC | ​ | 28,720 | ​ | 217,090 | ​ | 217,135 | ​ | 28,057 | ​ | 28,103 | ​ | 316,929 | ​ | 836,034
NCE (“Export credit notes”) | ​ | ​ | ​ | 640,800 | ​ | 637,460 | ​ | 25,000 | ​ | 25,000 | ​ | 50,001 | ​ | 1,378,261
NCR (“Rural producer certificates”) | ​ | ​ | ​ | 137,500 | ​ | 136,765 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 274,265
Debentures | ​ | ​ | ​ | 2,340,550 | ​ | 2,333,776 | ​ | ​ | ​ | 748,306 | ​ | 965,530 | ​ | 6,388,162
​ | ​ | 74,184 | ​ | 3,495,712 | ​ | 3,491,280 | ​ | 201,419 | ​ | 943,438 | ​ | 3,240,192 | ​ | 11,446,225
​ | ​ | 997,130 | ​ | 10,438,101 | ​ | 10,691,679 | ​ | 7,580,546 | ​ | 4,243,940 | ​ | 35,048,392 | ​ | 68,999,788

​

18.3.Roll-forward of loans, financing and debentures

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
Opening balance | ​ | 74,574,591 | ​ | 79,628,629
Fundraising, net of issuance costs | ​ | 5,276,816 | ​ | 1,335,715
Interest accrued | ​ | 2,309,587 | ​ | 4,007,737
Monetary and exchange rate variations, net | ​ | (4,543,048) | ​ | (3,949,020)
Settlement of principal | ​ | (765,533) | ​ | (2,517,934)
Settlement of interest | ​ | (2,352,484) | ​ | (4,019,072)
Amortization of fundraising costs | ​ | 32,402 | ​ | 69,649
Others (fair value adjustments to on business combinations) | ​ | ​ | ​ | 18,887
Closing balance | ​ | 74,532,331 | ​ | 74,574,591

​

18.4.Breakdown by currency

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Brazilian Reais | ​ | 14,355,349 | ​ | 13,347,244
U.S. Dollars | ​ | 60,172,808 | ​ | 61,216,140
Currency basket | ​ | 4,174 | ​ | 11,207
​ | ​ | 74,532,331 | ​ | 74,574,591

​

42

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

18.5.Fundraising costs

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

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Balance to be amortized
​ | ​ | ​ | ​ | ​ | ​ | June 30, | ​ | December 31,
Type |  | Cost |  | Amortization |  | 2023 |  | 2022
Bonds | ​ | 434,970 | ​ | 255,182 | ​ | 179,788 | ​ | 210,822
CRA and NCE | ​ | 125,222 | ​ | 119,769 | ​ | 5,453 | ​ | 10,838
Export credits (“export prepayments”) | ​ | 191,710 | ​ | 132,897 | ​ | 58,813 | ​ | 75,520
Debentures | ​ | 59,216 | ​ | 16,279 | ​ | 42,937 | ​ | 9,984
BNDES | ​ | 63,588 | ​ | 52,692 | ​ | 10,896 | ​ | 12,016
IFC - International Finance Corporation | ​ | 41,943 | ​ | 459 | ​ | 41,484 | ​ | ​
Others | ​ | 18,147 | ​ | 17,412 | ​ | 735 | ​ | 873
​ | ​ | 934,796 | ​ | 594,690 | ​ | 340,106 | ​ | 320,053

​

18.6.Guarantees

Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment are 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.BNDES

On June 27, 2023, the Company raised R$500,000 from BNDES indexed to the Long-Term Rate (“TLP”), plus a fixed interest rate of 5.23% p.a., with a principal grace period of 7 (seven) years and maturity in December 2037. The funds were allocated to projects in the forestry sector.

18.7.2.International Finance Corporation (“IFC”)

On December 22, 2022, the Company obtained a new credit line (“A&B Loan”) to be financed by the International Finance Corporation (IFC) and a syndicate of commercial banks, in a total amount of US$600,000 (equivalent to R$2,891,520).

The financing consists of the following parts: (i) “A-loan” in the amount of US$250,000 (equivalent to R$1,204,800) with IFC’s own resources, at a cost of Term SOFR + 1.80% p.a. and a total term of eight years, with a principal grace period of six years; and (ii) “B-loan,” a syndicated loan in the amount of US$350,000 (equivalent to R$1,686,720) at a cost of Term SOFR + 1.60% p.a. and a total term of seven years, with a principal grace period of five years.

This credit line was fully utilized by June 30, 2023.

The credit operation has sustainability performance indicators (KPIs) associated with goals for: (a) reducing greenhouse gas (GHG) emissions intensity, and (b) increasing the representation of women in leadership positions within the Company. The funds will be allocated to the Cerrado Project.

18.7.3.Advance of exchange contract (“ACC”)

On May 19, 2023, the Company raised US$100,000 (equivalent to R$481,920) from BNP Paribas at a fixed rate of 6.00%, with maturity in May 2024.

On June 21, 2023, the Company raised US$35,000 (equivalent to R$168,672) from BNP Paribas at a fixed rate of 6.52%, with maturity in June 2024.

43

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

18.7.4.Debenture

On June 29, 2023, the Company issued debenture in the amount of R$1,000,000.

The debenture consists of two parts: (i) an amount of R$500,000 at a cost of IPCA + 6.0188% p.a. and a total term of seven years, with a single maturity in 2030; and (ii) an amount of R$500,000 at a cost of IPCA + 6.2477% p.a. and a total term of ten years, with a single maturity in 2033.

18.8.Significant transactions settled during the period

On June 22, 2023, the Company settled a CRA contract in the amount of R$685,239 (principal and interest), with an original maturity in June 2023 and a cost of IPCA + 5.9844%.

​

19.LEASES

19.1.Right of use

The balances rolled forward are set out below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Machinery and | ​ | ​ | ​ | Ships and | ​ | ​ | ​ | ​
​ |  | Lands |  | equipment |  | Buildings |  | boats |  | Vehicles |  | Total
Balance as at December 31, 2021 | ​ | 2,868,411 | ​ | 86,464 | ​ | 88,410 | ​ | 1,748,008 | ​ | 2,730 | ​ | 4,794,023
Additions/updates | ​ | 849,996 | ​ | 66,821 | ​ | 61,647 | ​ | ​ | ​ | 4,216 | ​ | 982,680
Depreciation (1) | ​ | (360,225) | ​ | (40,732) | ​ | (64,301) | ​ | (124,890) | ​ | (2,303) | ​ | (592,451)
Write-offs (2) | ​ | (75,026) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (75,026)
Balance as at December 31, 2022 | ​ | 3,283,156 | ​ | 112,553 | ​ | 85,756 | ​ | 1,623,118 | ​ | 4,643 | ​ | 5,109,226
Additions/updates | ​ | 290,722 | ​ | 85,493 | ​ | 78,547 | ​ | ​ | ​ | 490 | ​ | 455,252
Depreciation (1) | ​ | (188,802) | ​ | (51,778) | ​ | (29,419) | ​ | (62,445) | ​ | (1,191) | ​ | (333,635)
Write-offs (2) | ​ | (54) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (54)
Balance as at June 30, 2023 | ​ | 3,385,022 | ​ | 146,268 | ​ | 134,884 | ​ | 1,560,673 | ​ | 3,942 | ​ | 5,230,789

​

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, 2023, the Company does not have commitments to lease agreements not yet in force.

19.2.Lease liabilities

The balance of lease payables on June 30, 2023, measured at present value and discounted at the respective discount rates are set forth below:

​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Average rate - | ​ | ​ | ​ | Present value of
Nature of agreement |  | % p.a. (1) |  | Maturity (2) |  | liabilities
Lands and farms | ​ | 12.52 | ​ | April/2050 | ​ | 3,673,964
Machinery and equipment | ​ | 11.43 | ​ | April/2035 | ​ | 217,381
Buildings | ​ | 10.84 | ​ | September/2031 | ​ | 122,556
Ships and boats | ​ | 11.39 | ​ | February/2039 | ​ | 2,178,580
Vehicles | ​ | 10.83 | ​ | July/2026 | ​ | 3,503
​ | ​ | ​ | ​ | ​ | ​ | 6,195,984

​

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.

​

44

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

The balances rolled forward are set out below:

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
Opening balance |  | 6,182,530 |  | 5,893,194
Additions | ​ | 455,252 | ​ | 982,680
Write-offs (2) | ​ | (54) | ​ | (75,026)
Payments | ​ | (577,132) | ​ | (1,044,119)
Accrual of financial charges (1) | ​ | 327,374 | ​ | 612,042
Exchange rate variations | ​ | (191,986) | ​ | (186,241)
Closing balance | ​ | 6,195,984 | ​ | 6,182,530
​ | ​ | ​ | ​ | ​
Current | ​ | 710,906 | ​ | 672,174
Non-current | ​ | 5,485,078 | ​ | 5,510,356

​

1) | On June 30, 2023, the amount of R$104,137 related to interest expenses on leased lands was capitalized to biological assets to represent the formation cost (R$178,429 as of December 31, 2022).

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:

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Expenses relating to short-term assets | ​ | 5,559 | ​ | 1,038
Expenses relating to low-value assets | ​ | 946 | ​ | 571
​ | ​ | 6,505 | ​ | 1,609

​

​

45

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2023
​ | ​ | Tax and | ​ | ​ | ​ | Civil, | ​ | Contingent | ​ | ​
​ | ​ | social | ​ | ​ | ​ | environment | ​ | liabilities | ​ | ​
​ |  | security |  | Labor |  | and real estate |  | assumed (1) (2) |  | Total
Provision balance at the beginning of the period | ​ | 419,915 | ​ | 255,805 | ​ | 118,729 | ​ | 2,645,705 | ​ | 3,440,154
Payments | ​ | (1,192) | ​ | (22,839) | ​ | (868) | ​ | ​ | ​ | (24,899)
Reversal | ​ | (4,968) | ​ | (28,652) | ​ | (7,507) | ​ | (88,612) | ​ | (129,739)
Additions | ​ | 29,147 | ​ | 62,979 | ​ | 11,155 | ​ | ​ | ​ | 103,281
Monetary adjustment | ​ | 13,158 | ​ | 10,700 | ​ | 8,889 | ​ | ​ | ​ | 32,747
Provision balance | ​ | 456,060 | ​ | 277,993 | ​ | 130,398 | ​ | 2,557,093 | ​ | 3,421,544
Judicial deposits | ​ | (145,567) | ​ | (77,101) | ​ | (23,796) | ​ | ​ | ​ | (246,464)
Provision balance at the end of the period | ​ | 310,493 | ​ | 200,892 | ​ | 106,602 | ​ | 2,557,093 | ​ | 3,175,080

​

1) | Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R$2,410,363 and civil lawsuits in the amount of R$146,730, measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3- Business Combinations.

​

2) | Reversal due to a change in likelihood and/or due to settlement.

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ | 2022
​ | ​ | Tax and | ​ | ​ | ​ | Civil, | ​ | Contingent | ​ | ​
​ | ​ | social | ​ | ​ | ​ | environment | ​ | liabilities | ​ | ​
​ |  | security |  | Labor |  | and real estate |  | assumed (1) (2) |  | Total
Provision balance at the beginning of the year | ​ | 477,096 | ​ | 178,925 | ​ | 82,592 | ​ | 2,694,541 | ​ | 3,433,154
Payments | ​ | (14,948) | ​ | (44,516) | ​ | (20,497) | ​ | ​ | ​ | (79,961)
Reversal | ​ | (71,446) | ​ | (53,211) | ​ | (15,577) | ​ | (48,836) | ​ | (189,070)
Additions | ​ | 14,036 | ​ | 157,562 | ​ | 56,834 | ​ | ​ | ​ | 228,432
Monetary adjustment | ​ | 15,177 | ​ | 17,045 | ​ | 15,377 | ​ | ​ | ​ | 47,599
Provision balance | ​ | 419,915 | ​ | 255,805 | ​ | 118,729 | ​ | 2,645,705 | ​ | 3,440,154
Judicial deposits | ​ | (149,951) | ​ | (12,270) | ​ | (21,623) | ​ | ​ | ​ | (183,844)
Provision balance at the end of the year | ​ | 269,964 | ​ | 243,535 | ​ | 97,106 | ​ | 2,645,705 | ​ | 3,256,310

​

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, in accordance with paragraph 23 of IFRS 3 – Business Combinations.

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

46

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

20.1.1.Tax and social security

On June 30, 2023, the Company has 30 (thirty) (31 (thirty-one) as of December 31, 2022) 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.

20.1.2.Labor

On June 30, 2023, the Company has 1,176 (one thousand, one hundred and seventy-six) as of December 31, 2022 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, 2023, the Company has 77 (seventy-seven) (66 (sixty-six) as at December 31, 2022) 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:

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Taxes and social security (1) | ​ | 9,211,342 | ​ | 8,201,246
Labor | ​ | 224,181 | ​ | 321,428
Civil and environmental (1) | ​ | 4,981,793 | ​ | 4,414,877
​ | ​ | 14,417,316 | ​ | 12,937,551

​

1) | The amounts above do not include the fair value adjustments allocated to possible loss risk contingencies representing R$2,537,335 (R$2,614,518 as of December 31, 2022), which were recorded at fair value resulting from business combinations with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combinations, as presented in Note 20.1.1. above.

In the six-month period ended June 30, 2023, 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, 2022 (Note 20).

20.3.Contingent assets

In the six-month period ended June 30, 2023, 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, 2022 (Note 20).

​

47

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

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, 2022 (Note 21), which did not change during the six-month period ended June 30, 2023.

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, 2023 amounted R$8,650 (R$7,308 as of June 30, 2022) recognized under the cost of sales, selling and general and administrative expenses.

21.2.Defined benefits plan

The Company offers the following post-employment benefits 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:

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
Opening balance |  | 691,424 |  | 675,158
Interest on actuarial liabilities | ​ | 34,615 | ​ | 59,258
Actuarial loss | ​ | ​ | ​ | 12,231
Exchange rate variations | ​ | ​ | ​ | (577)
Amount arising from the acquisition of MMC Brasil | ​ | 1,457 | ​ | ​
Benefits paid | ​ | (25,563) | ​ | (54,646)
Closing balance | ​ | 701,933 | ​ | 691,424

​

​

​

​

48

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

22.SHARE-BASED COMPENSATION PLAN

For the six-month period ended June 30, 2023, 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, 2022 (Note 22), which did not change during the six-month period ended June 30, 2023.

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

The roll-forward arrangements are set out below:

​ | ​ | ​ | ​ | ​
​ | ​ | Number of shares
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Opening balance | ​ | 7,583,185 | ​ | 5,415,754
Granted during of the period | ​ | 3,318,892 | ​ | 4,152,200
Exercised (1) | ​ | (244,464) | ​ | (1,474,506)
Exercised due to resignation (1) | ​ | (24,743) | ​ | (175,552)
Abandoned/cancelled due to resignation | ​ | (225,126) | ​ | (334,711)
Closing balance | ​ | 10,407,744 | ​ | 7,583,185

​

1) | The average price of the share options exercised and exercised due to termination of employment on June 30, 2023 was R$47.78 (forty seven reais and seventy eight cents) ((R$48.79 (forty eight reais and seventy nine cents) as at December 31, 2022).

22.2.Restricted shares plan

The position is set forth below:

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Date of | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | execution of | ​ | ​ | ​ | Price on | ​ | ​ | ​ | Restricted year for
Program |  | the contract |  | Grant date |  | grant date |  | Shares Granted |  | transfer of shares
2020 | ​ | 01/02/2020 | ​ | 01/02/2021 | ​ | R$ | 51.70 | ​ | 111,685 | ​ | 01/02/2024
2021 | ​ | 01/02/2021 | ​ | 01/02/2022 | ​ | R$ | 53.81 | ​ | 113,161 | ​ | 01/02/2025
2022 | ​ | 01/02/2022 | ​ | 01/02/2023 | ​ | R$ | 52.00 | ​ | 101,164 | ​ | 01/02/2026
2023 | ​ | 01/02/2023 | ​ | 01/02/2023 | ​ | R$ | 49.58 | ​ | 161,355 | ​ | 01/02/2026
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 487,365 | ​ | ​

​

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
​ | ​ | June 30, | ​ | December 31, | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022 |  | 2023 |  | 2022
Non-current liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Provision for phantom stock plan | ​ | 183,589 | ​ | 162,117 | ​ | (32,731) | ​ | (31,389)
Equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Stock options granted | ​ | 22,584 | ​ | 20,790 | ​ | (4,159) | ​ | (2,668)
Shares granted | ​ | ​ | ​ | (2,365) | ​ | ​ | ​ | 2,365
​ | ​ | 22,584 | ​ | 18,425 | ​ | (4,159) | ​ | (303)
​ | ​ | ​ | ​ | ​ | ​ | (36,890) | ​ | (31,692)

​

​

49

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

23.LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Assets acquisitions | ​ | ​ | ​ | ​
Vitex/Parkia (1) | ​ | ​ | ​ | 1,758,365
​ | ​ | ​ | ​ | 1,758,365
Business combinations | ​ | ​ | ​ | ​
Facepa (2) | ​ | 25,884 | ​ | 42,655
Vale Florestar Fundo de Investimento em Participações (“VFFIP”) (3) | ​ | 254,980 | ​ | 261,302
​ | ​ | 280,864 | ​ | 303,957
​ | ​ | 280,864 | ​ | 2,062,322
​ | ​ | ​ | ​ | ​
Current | ​ | 101,207 | ​ | 1,856,763
Non-current | ​ | 179,657 | ​ | 205,559

​

1) | On June 22, 2022, the Company acquired all the shares of the Parkia structure companies, in the amount of US$667,000 (equivalent to R$3,444,255 on the date of execution of the agreement), upon the payment of US$330,000 (equivalent to R$1,704,054 on the date of the transaction), on June 22, 2023, the payment of the second installment in the amount of US$337,000 (equivalent to R$1,615,140 on the transaction date) was made.

2) | 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.

3) | 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 Dollar exchange rate, and partially updated by the IPCA.

​

​

​

24.SHAREHOLDERS’ EQUITY

24.1 Share capital

On June 30, 2023, Suzano’s share capital was R$9,269,281 divided into 1,324,117,615 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$9,235,546. The breakdown of the share capital is as set out below:

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2023 | ​ | 2022
​ |  | Quantity |  | (%) |  | Quantity |  | (%)
Controlling Shareholders | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Suzano Holding S.A. | ​ | 367,612,329 | ​ | 27.76 | ​ | 367,612,329 | ​ | 27.01
Controller | ​ | 196,064,797 | ​ | 14.81 | ​ | 195,064,797 | ​ | 14.33
Managements and related persons | ​ | 34,097,609 | ​ | 2.57 | ​ | 34,102,309 | ​ | 2.51
Alden Fundo de Investimento em Ações | ​ | 26,154,744 | ​ | 1.98 | ​ | 26,154,744 | ​ | 1.91
​ | ​ | 623,929,479 | ​ | 47.12 | ​ | 622,934,179 | ​ | 45.76
Treasury (Note 24.2) | ​ | 32,466,900 | ​ | 2.45 | ​ | 51,911,569 | ​ | 3.81
Other shareholders | ​ | 667,721,236 | ​ | 50.43 | ​ | 686,417,836 | ​ | 50.43
​ | ​ | 1,324,117,615 | ​ | 100.00 | ​ | 1,361,263,584 | ​ | 100.00

​

By a resolution of the Board of Directors, the share capital may be increased, irrespective of any amendments to the Bylaws, up to the limit of 780,119,712 common shares, all exclusively book-entry shares.

For the six-month period ended June 30, 2023, SUZB3 common shares closed the period quoted at R$44.22 (forty-four reais and twenty-two cents) and R$48.24 (forty-eight reais and twenty-four cents) on December 31, 2022.

50

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

24.2 Treasury shares

In the six-month period ended June 30, 2023, the Company had 32,466,900 (51,911,569 as of December 31, 2022) of its own common shares held in treasury, with an average cost of R$42.55 (forty-two reais and fifty-five cents) per share, with a historical value of R$1,381,600 (R$2,120,324 as at December 31, 2022) and the market corresponding to R$1,435,686 ( R$2,504,214 as at December 31, 2022).

​

On February 28, 2023, 37,145,969 common shares were cancelled, as described in Note 1.2.5.

The Company has repurchase programs, approved on October 27, 2022, with a limit of 20,000,000 common shares of its own issue, with a term of 18 months. Up to June 30, 2023, the Company had repurchased 17,701,300 common shares with a total of R$778,500, of which R$721,052 had a cash effect up to June 30, 2023 and R$57,448 were settled in the subsequent month.

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Average cost |  | Historical |  | Market
​ | ​ | Quantity | ​ | per share | ​ | value | ​ | value
Balances at December 31, 2021 | ​ | 12,042,004 | ​ | 18.13 | ​ | 218,265 | ​ | 656,530
Realization in the restricted stock plan |  | 130,435 |  | 18.13 |  | 2,365 |  | 8,156
Repurchase |  | 40,000,000 |  | 47.61 |  | 1,904,424 |  | 1,904,424
Balances at December 31, 2022 |  | 51,911,569 |  | 40.84 |  | 2,120,324 |  | 2,504,214
Repurchase |  | 17,701,300 |  | 43.98 |  | 778,500 |  | 778,500
Canceled |  | 37,145,969 |  | 40.84 |  | 1,517,224 |  | 1,570,532
Balances at June 30, 2023 |  | 32,466,900 |  | 42.55 |  | 1,381,600 |  | 1,435,686

​

​

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.

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Resulted of the period attributable to controlling shareholders | ​ | 10,310,498 | ​ | 10,480,342
Weighted average number of shares in the period – in thousands | ​ | 1,336,021 | ​ | 1,361,264
Weighted average treasury shares – in thousands | ​ | (26,791) | ​ | (14,088)
Weighted average number of outstanding shares – in thousands | ​ | 1,309,230 | ​ | 1,347,176
Basic earnings (loss) per common share - R$ | ​ | 7.87524 | ​ | 7.77949

​

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.

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Resulted of the period attributed to controlling shareholders | ​ | 10,310,498 | ​ | 10,480,342
Weighted average number of shares during the period (except treasury shares) – in thousands | ​ | 1,309,230 | ​ | 1,347,176
Average number of potential shares (stock options) – in thousands | ​ | 487 | ​ | 215
Weighted average number of shares (diluted) – in thousands | ​ | 1,309,717 | ​ | 1,347,391
Diluted earnings (loss) per common share - R$ | ​ | 7.87231 | ​ | 7.77825

​

51

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

​

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.

In April 26, 2023, the shareholders’ meeting approved the retention of profits in the amount of R$14,972,324, for investments on the Company’s productive capacity and improvement of processes in order to meet the Company’s growth strategy commitments.

​

26.NET FINANCIAL RESULT

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Financial expenses | ​ | ​ | ​ | ​
Interest on loans, financing and debentures (1) | ​ | (1,797,937) | ​ | (1,742,976)
Amortization of transaction costs (2) | ​ | (32,421) | ​ | (36,838)
Interest expenses on lease liabilities (3) | ​ | (223,237) | ​ | (210,597)
Amortization of fair value adjustments | ​ | ​ | ​ | (9,452)
Other | ​ | (254,471) | ​ | (183,660)
​ | ​ | (2,308,066) | ​ | (2,183,523)
Financial income | ​ | ​ | ​ | ​
Cash and cash equivalents and marketable securities | ​ | 683,608 | ​ | 303,822
Other | ​ | 106,290 | ​ | 48,745
​ | ​ | 789,898 | ​ | 352,567
Results from derivative financial instruments | ​ | ​ | ​ | ​
Income | ​ | 6,758,955 | ​ | 8,653,252
Expenses | ​ | (1,859,936) | ​ | (4,032,366)
​ | ​ | 4,899,019 | ​ | 4,620,886
Monetary and exchange rate variations, net | ​ | ​ | ​ | ​
Exchange rate variations on loans, financing and debentures | ​ | 4,543,048 | ​ | 3,812,954
Leases | ​ | 191,986 | ​ | 176,291
Other assets and liabilities (4) | ​ | (1,110,099) | ​ | (818,556)
​ | ​ | 3,624,935 | ​ | 3,170,689
Net financial result | ​ | 7,005,786 | ​ | 5,960,619

​

1) | Excludes R$511,650 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, 2023 (R$108,972 as at June 30, 2022).

2) | Includes expense of R$19 arising from transaction costs on loans and financing that were recognized directly in the statement of income (R$39 as at June 30, 2022).

3) | Includes R$104,137 referring to the reclassification to the biological assets item for the composition of the formation cost (R$84,470 as of June 30, 2022).

​

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

​

​

​

52

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

27.NET SALES

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Gross sales | ​ | 24,552,121 | ​ | 25,466,749
Sales deductions | ​ | ​ | ​ | ​
Returns and cancellations | ​ | (65,560) | ​ | (42,388)
Discounts and rebates | ​ | (3,019,895) | ​ | (3,187,446)
​ | ​ | 21,466,666 | ​ | 22,236,915
Taxes on sales | ​ | (1,030,649) | ​ | (974,425)
Net sales | ​ | 20,436,017 | ​ | 21,262,490

​

​

​

​

​

​

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

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 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 markets | ​ | 15,052,854 | ​ | 1,161,760 | ​ | 16,214,614 | ​
EBITDA | ​ | 9,155,697 | ​ | 1,812,784 | ​ | 10,968,481 | ​
Depreciation, depletion and amortization | ​ | ​ | ​ | ​ | ​ | (3,593,516) | ​
Operating profit before net financial income (“EBIT”) (1) | ​ | ​ | ​ | ​ | ​ | 7,374,965 | ​
EBITDA margin (%) | ​ | 56.16% | ​ | 43.85% | ​ | 53.67% | ​

​

1) | (“Earnings before interest and tax”).

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2022 | ​
​ |  | Pulp |  | Paper |  | Total |
Net sales |  | 17,496,421 | ​ | 3,766,069 | ​ | 21,262,490 | ​
Domestic market (Brazil) |  | 1,246,965 | ​ | 2,589,671 | ​ | 3,836,636 | ​
Foreign market |  | 16,249,456 | ​ | 1,176,398 | ​ | 17,425,854 | ​
EBITDA |  | 10,168,584 | ​ | 1,402,897 | ​ | 11,571,481 | ​
Depreciation, depletion and amortization |  | ​ | ​ | ​ | ​ | (3,594,963) | ​
Operating profit before net financial income (“EBIT”) (1) |  | ​ | ​ | ​ | ​ | 7,976,518 | ​
EBITDA margin (%) |  | 58.12% | ​ | 37.25% | ​ | 54.42% | ​

​

53

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

1) | (“Earnings before interest and tax”).

​

28.3 Net sales by product

​

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
Products |  | 2023 |  | 2022
Market pulp(1) | ​ | 16,302,347 | ​ | 17,496,421
Printing and writing paper(2) | ​ | 3,384,698 | ​ | 3,089,666
Paperboard | ​ | 708,576 | ​ | 644,809
Other | ​ | 40,396 | ​ | 31,594
​ | ​ | 20,436,017 | ​ | 21,262,490

​

1) | Net sales of fluff pulp represent approximately 0.8% of total net sales, and therefore were included in market pulp net sales. (0.8% as at June 30, 2022).

2) | Net sales of tissue represent approximately 3.1% of total net sales, and therefore were included in printing and writing paper net sales. (2.5% as at June 30, 2022).

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:

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2023 |  | 2022
Pulp | ​ | 7,897,051 | ​ | 7,897,051
Paper (1) | ​ | 302,130 | ​ | 119,332
​ | ​ | 8,199,181 | ​ | 8,016,383

​

1)On June 1, 2023, the Company completed the acquisition of MMC Brasil.(Note 1.2.3.)

​

54

​ ​ ​ ​ ​ | ​ ​
Suzano S.A. ​ Notes to the unaudited condensed consolidated interim financial information Six-month period ended June 30, 2023 ​ |

​

29.INCOME (EXPENSES) BY NATURE

​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | June 30,
​ |  | 2023 |  | 2022
Cost of sales | ​ | ​ | ​ | ​
Personnel expenses | ​ | (711,401) | ​ | (652,396)
Costs of raw materials, materials and services | ​ | (5,336,373) | ​ | (5,351,098)
Logistics costs | ​ | (2,129,684) | ​ | (2,176,264)
Depreciation, depletion and amortization | ​ | (3,144,107) | ​ | (3,088,132)
Other (1) | ​ | (875,290) | ​ | (287,875)
​ | ​ | (12,196,855) | ​ | (11,555,765)
Selling expenses | ​ | ​ | ​ | ​
Personnel expenses | ​ | (126,331) | ​ | (115,604)
Services | ​ | (62,108) | ​ | (63,133)
Logistics costs | ​ | (516,380) | ​ | (509,420)
Depreciation and amortization | ​ | (475,228) | ​ | (474,249)
Other (2) | ​ | (51,115) | ​ | (35,302)
​ | ​ | (1,231,162) | ​ | (1,197,708)
General and administrative expenses | ​ | ​ | ​ | ​
Personnel expenses | ​ | (489,463) | ​ | (437,176)
Services | ​ | (171,346) | ​ | (142,973)
Depreciation and amortization | ​ | (55,014) | ​ | (51,639)
Other (3) | ​ | (101,620) | ​ | (69,444)
​ | ​ | (817,443) | ​ | (701,232)
Other operating (expenses) income net | ​ | ​ | ​ | ​
Rents and leases | ​ | 1,476 | ​ | 1,058
Results from sales of other products, net | ​ | 48,312 | ​ | 34,723
Results from sales and disposals of property, plant and equipment, intangible and biological assets, net | ​ | (111,195) | ​ | 8,041
Result on fair value adjustment of biological assets | ​ | 1,256,315 | ​ | 171,618
Depletion and amortization | ​ | 80,833 | ​ | 19,057
Tax credits - ICMS from the PIS/COFINS calculation basis | ​ | ​ | ​ | (1,324)
Provision for judicial liabilities | ​ | (71,878) | ​ | (64,300)
Other operating income (expenses), net | ​ | (19,874) | ​ | (9,447)
​ | ​ | 1,183,989 | ​ | 159,426

​

1) | Includes R$411,718 related to maintenance downtime, costing (R$368,606 as at June 30, 2022).

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.

​

​

​

​

​

55