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FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT (Tables)
12 Months Ended
Dec. 31, 2023
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Schedule of financial instruments by category
All transactions with financial instruments are recognized for accounting purposes and classified in the following categories:
NoteDecember 31, 2023December 31, 2022
Assets
Amortized cost
Cash and cash equivalents58,345,871 9,505,951 
Trade accounts receivable76,848,454 9,607,012 
Dividends receivable11 7,334 
Other assets (1)
737,222 931,173 
15,931,547 20,051,470 
Fair value through other comprehensive income
Investments - Celluforce14.123,606 24,917 
23,606 24,917 
Fair value through profit or loss
Derivative financial instruments4.5.14,430,454 4,873,749 
Marketable securities613,267,286 7,965,742 
17,697,740 12,839,491 
33,652,893 32,915,878 
Liabilities
Amortized cost
Trade accounts payable175,572,219 6,206,570 
Loans, financing and debentures18.177,172,692 74,574,591 
Lease liabilities19.26,243,782 6,182,530 
Liabilities for assets acquisitions and subsidiaries23187,187 2,062,322 
Dividends and interest on own capital payable1,316,528 5,094 
Other liabilities (1)
116,716 147,920 
90,609,124 89,179,027 
Fair value through profit or loss
Derivative financial instruments4.5.12,436,072 4,846,795 
2,436,072 4,846,795 
93,045,196 94,025,822 
59,392,303 61,109,944 
(1)Does not include items not classified as financial instruments
Summary of estimated fair value of loans and financing
Yield used to
discount/
methodology
December 31,
2023
December 31,
2022
Quoted in the secondary market
In foreign currency
BondsSecondary Market38,703,379 40,309,832 
Estimated present value
In foreign currency
Export credits (“Prepayment”)SOFR17,783,760 17,724,315 
Assets FinancingSOFR278,107 138,644 
IFC - International Finance CorporationSOFR3,198,761  
BNDES - Currency basketDI 1 10,866 
In local currency
BNDES – TJLPDI 1215,458 292,487 
BNDES – TLPDI 12,712,762 1,393,010 
BNDES – FixedDI 13,903 21,656 
BNDES – SELIC (“Special Settlement and Custody System”)DI 1686,798 575,129 
Assets financingDI 175,622 
CRA (“Agribusiness Receivables Certificate”)DI 1/IPCA 1,835,336 
DebenturesDI 18,881,277 5,643,440 
NCE (“Export Credit Notes”)DI 1110,396 1,384,396 
NCR (“Rural Credit Notes”)DI 12,228,806 294,089 
Export credits (“Prepayment”)DI 1824,035 1,320,415 
75,703,064 70,943,615 
Schedule of contractual maturities of financial liabilities
December 31,
2023
Book
value
Undiscounted cash flowUp to 1
year
1 - 2 years2 - 5 yearsMore than
5 years
Liabilities
Trade accounts payable5,572,219 5,572,219 5,572,219    
Loans, financing and debentures 77,172,692 105,526,852 7,648,237 12,983,542 31,355,362 53,539,711 
Lease liabilities6,243,782 11,021,519 1,172,568 1,045,795 2,743,793 6,059,363 
Liabilities for asset acquisitions and subsidiaries187,187 215,891 94,948 18,314 87,520 15,109 
Derivative financial instruments 2,436,072 2,801,258 66,433 1,278,953 1,191,014 264,858 
Dividends and interest on own capital payable1,316,528 1,316,528 1,316,528    
Other liabilities116,716 116,716 58,955 57,761   
93,045,196 126,570,983 15,929,888 15,384,365 35,377,689 59,879,041 
December 31,
2022
Book
value
Undiscounted cash flowUp to 1
year
1 - 2 years2 - 5 yearsMore than
5 years
Liabilities
Trade accounts payable6,206,570 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 liabilities6,182,530 11,053,487 1,050,947 992,379 2,668,855 6,341,306 
Liabilities for asset acquisitions and subsidiaries2,062,322 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 payable5,094 5,094 5,094    
Other liabilities147,920 147,920 61,500 86,420   
94,025,822 131,473,547 16,862,088 10,419,010 46,502,773 57,689,676 
Schedule of credit exposures using internal credit grading
December 31,
2023
December 31,
2022
Low (1)
6,549,975 9,430,244 
Average (2)
156,883 129,900 
High (3)
173,558 67,977 
6,880,416 9,628,121 
(1)Current and overdue up to 30 days.
(2)Overdue between 30 and 90 days.
(3)Overdue more than 90 days
Schedule of the book value of financial assets representing the exposure to credit risk
December 31, 2023December 31, 2022
Cash and cash equivalents8,345,871 9,505,951 
Marketable securities13,267,286 7,965,742 
Derivative financial instruments (1)
4,199,982 4,833,330 
25,813,139 22,305,023 
(1)Does not include the derivative embedded in a forest partnership agreement for the supply of standing wood, which is not a transaction with a financial institution.
Schedule of credit exposures using external credit grading
Cash and cash equivalents and
marketable securities
Derivative financial instruments
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Risk rating (1)
AAA878,241 
AA-1,007,537 47,681 
A+136,864 1,149,694 
A55,547 1,485,424 
A-1,095 
brAAA20,856,072 17,117,171 1,682,513 1,418,968 
brAA+511,589 1,173 439,280 
brAA6,565 133,030 730,468 
brAA-2,169 47 
brA+352 
brA17,595 
brBBB-3 
brBB1,132 
brBB-385 2,897 
Others235,242 199,428 
21,613,157 17,471,693 4,199,982 4,833,330 
(1)We use the Brazilian Risk Ratings issued by the agencies Fitch Ratings, Standard & Poor’s and Moody’s
Schedule of net exposure of assets and liabilities in foreign currency
The assets and liabilities that are exposed to foreign currency, substantially in U.S. Dollars, are set forth below:
December 31, 2023December 31, 2022
Assets
Cash and cash equivalents6,432,557 8,039,218 
Marketable securities7,378,277 4,510,652 
Trade accounts receivable5,049,609 7,612,768 
Derivative financial instruments3,070,594 3,393,785 
21,931,037 23,556,423 
Liabilities
Trade accounts payable(1,625,011)(2,030,806)
Loans and financing(61,304,673)(61,216,140)
Liabilities for asset acquisitions and subsidiaries(127,598)(2,053,259)
Derivative financial instruments(1,867,882)(4,698,323)
(64,925,164)(69,998,528)
(42,994,127)(46,442,105)
Summary of yield curves used to calculate fair value of derivative financial instruments
Interest rate curves
TermBrazilUnited States of AmericaUS Dollar coupon
1 month
11.65% p.a.
5.35% p.a.
2.54% p.a.
6 months
10.79% p.a.
5.15% p.a.
5.55% p.a.
1 year
9.99% p.a.
4.77% p.a.
5.58% p.a.
2 years
9.55% p.a.
4.16% p.a.
5.18%p.a.
3 years
9.66% p.a.
3.89% p.a.
4.99% p.a.
5 years
10.04% p.a.
3.76% p.a.
5.00% p.a.
10 years
10.33% p.a.
4.02% p.a.
5.74% p.a.
Schedule of derivatives by type of contract
Notional value, net in U.S.$Fair value in R$
December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Instruments as part of protection strategy
Operational hedges
Zero Cost Collar4,500,200 6,866,800 1,968,337 1,596,089 
NDF (R$ x US$)505,000 248,100 162,776 (2,474)
NDF (€ x US$)262,088 544,702 100,362 161,055 
Debt hedges
Swap SOFR to Fixed (US$) 2,555,626 3,200,179 741,492 1,052,546 
Swap IPCA to CDI (notional in Brazilian Reais)4,274,397 1,741,787 47,645 278,945 
Swap IPCA to Fixed (US$)121,003 (29,910)
Swap CDI x Fixed (US$) 1,025,000 1,863,534 (1,081,964)(2,566,110)
Pre-fixed Swap to US$ (US$) 200,000 350,000 (203,045)(503,605)
Swap CDI x SOFR (US$) 125,000 25,774 
Swap SOFR to SOFR (US$) 150,961 (16,615)
Commodity Hedge
Swap US-CPI (US$) (1)
131,510 124,960 230,471 40,418 
Zero Cost Collar (Brent)163,100 (3,148)
Swap VLSFO/Brent142,794 22,297 
1,994,382 26,954 
Current assets2,676,526 3,048,493 
Non-current assets1,753,928 1,825,256 
Current liabilities(578,763)(667,681)
Non-current liabilities(1,857,309)(4,179,114)
1,994,382 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.
Schedule of fair value by maturity
December 31, 2023December 31, 2022
20242,097,763 2,380,812 
2025233,073 297,156 
2026(574,871)(1,225,193)
2027 onwards238,417 (1,425,821)
1,994,382 26,954 
Schedule of long and short positions of outstanding derivatives
Notional valueFair value
CurrencyDecember 31, 2023December 31, 2022December 31, 2023December 31, 2022
Debt hedges
Assets
Swap CDI to Fixed (US$)R$3,898,011 7,081,545 223,776 617,835 
Swap Pre-Fixed to US$ R$738,800 1,317,226  45,329 
Swap SOFR to Fixed (US$)US$2,555,626 3,200,000 1,104,984 1,052,546 
Swap IPCA to CDIIPCA4,320,471 2,041,327 161,542 427,417 
Swap IPCA to US$IPCA 610,960   
Swap CDI to SOFR (US$)R$644,850  32,560  
Swap SOFR to SOFR (US$)US$150,961  6,681  
1,529,543 2,143,127 
Liabilities
Swap CDI to Fixed (US$)US$1,025,000 1,863,534 (1,305,740)(3,183,945)
Swap Pre-Fixed to US$ US$200,000 350,000 (203,045)(548,934)
Swap SOFR to Fixed (US$)US$2,555,626 3,200,000 (363,492) 
Swap IPCA to CDIR$4,274,397 1,741,787 (113,897)(148,472)
Swap IPCA to US$US$ 121,003  (29,910)
Swap CDI to SOFR (US$)US$125,000  (6,786) 
Swap SOFR to SOFR (US$)US$150,961  (23,296) 
(2,016,256)(3,911,261)
(486,713)(1,768,134)
Operational hedge
Zero Cost Collar (US$ x R$)US$4,500,200 6,866,800 1,968,337 1,596,089 
NDF (R$ x US$)US$505,000 248,100 162,776 (2,474)
NDF (€ x US$)US$262,088 544,702 100,362 161,055 
2,231,475 1,754,670 
 Commodity hedge
Swap US-CPI (standing wood) (1)
US$131,510 124,960 230,471 40,418 
Zero Cost Collar (Brent)US$163,100  (3,148) 
Swap VLSFO/BrentUS$142,794  22,297  
249,620 40,418 
1,994,382 26,954 
(1)The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract.
Schedule of fair value settled derivatives
Currency risk [member] | Financial instruments, excluding derivatives  
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Summary of sensitivity analysis
December 31, 2023
Effect on profit or loss
Probable
(base value)
Possible
(25%)
Remote
(50%)
Cash and cash equivalents6,432,557 1,608,139 3,216,279 
Marketable securities7,378,277 1,844,569 3,689,139 
Trade accounts receivable5,049,609 1,262,402 2,524,805 
Trade accounts payable(1,625,011)(406,253)(812,506)
Loans and financing(61,304,673)(15,326,168)(30,652,337)
Liabilities for asset acquisitions and subsidiaries(127,598)(31,900)(63,799)
Currency risk [member] | Derivative financial instruments  
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Summary of sensitivity analysis
The following table set out the possible impacts assuming these scenarios:
December 31, 2023
Effect on profit or loss
Probable
(base value)
Possible
25%
Remote
50%
Dollar/Real
Derivative financial instruments
Derivative options1,968,337 (3,436,589)(7,464,284)
Derivative swaps(486,713)(1,491,613)(2,981,409)
Derivative Non-Deliverable Forward (‘NDF’) Contracts162,776 (596,284)(1,192,682)
Embedded derivatives230,471 (122,510)(245,021)
NDF parity derivatives (1)
100,362 (22,715)(47,331)
Commodity Derivatives19,149 (8,721)(14,295)
Dollar/Euro
Derivative financial instruments
NDF parity derivatives (1)
100,362 (337,711)(675,423)
(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.
Interest rate risk [member] | Financial instruments, excluding derivatives  
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Summary of sensitivity analysis
December 31, 2023
Effect on profit or loss
ProbablePossible
(25%)
Remote
(50%)
CDI/SELIC
Cash and cash equivalents1,784,313 (56,429)(112,858)
Marketable securities5,889,009 (186,240)(372,480)
Loans and financing8,686,026 274,696 549,391 
TJLP
Loans and financing250,474 4,383 8,767 
SOFR
Loans and financing19,670,956 265,337 530,673 
Interest rate risk [member] | Derivative financial instruments  
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Summary of sensitivity analysis
December 31, 2023
Effect on profit or loss
ProbableProbable
25%
Remote
50%
CDI
Derivative financial instruments
Liabilities
Derivative options1,968,337 (387,790)(743,473)
Derivative swaps(486,713)(39,216)(66,609)
SOFR
Derivative financial instruments
Liabilities
Derivative swaps(486,713)127,655 269,490 
Other price risk [member] | Derivative financial instruments  
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT  
Summary of sensitivity analysis
December 31, 2023
Effect on profit or loss
Probable
(base value)
Possible
(25%)
Remote
(50%)
Embedded derivative in a commitment to purchase standing wood, originating from a forest partnership agreement230,471 (30,667)(63,157)