Company: SUZ
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001628280-25-020368
Chunk: 214

Company: Suzano S.A.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 19
Chunk 214
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 exchange rates and interest rates, price and adjustment indices ("market risk") or other assets or instruments traded in liquid or illiquid markets to which the value of the assets, liabilities and cash flow are exposed;

(ii) Establish limits and instruments with the purpose of allocating the Company's cash to financial institutions falling within acceptable credit risk exposure parameters; and

(iii) Optimize the process of contracting financial instruments for protection against exposure to risk, drawing on natural hedges and correlations between the prices of different assets and markets, avoiding any waste of funds for inefficient transactions. All financial transactions entered into by the Company aim to protect existing exposures, with the assumption of new risks being prohibited, except those arising from its operating activities.

Hedging instruments are contracted exclusively for hedging purposes and are based on the following terms:

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(i) Protection of cash flow against currency mismatches;

(ii) Protection of revenue flows for debt settlement and interest payments against fluctuations in interest rates and currencies; and

(iii) Protection against fluctuations in the prices of pulp and other supplies related to production.

The Treasury team is responsible for identification, evaluating and seeking protection against possible financial risks. The Board of Directors approves financial policies that establish the principles and guidance for global risk management, the areas involved in these activities, the use of derivative and non-derivative financial instruments, and the allocation of a cash surplus.

The Company only uses the most liquid financial instruments, and:

(i) Does not enter into leveraged transactions or other forms of embedded options that change the purpose of protection (hedge);

(ii)Does not have double-indexed debt or other forms of implied options; and

(iii) Does not have any transactions requiring margin deposits or other forms of collateral for counterparty credit risk.

The Company does not use hedge accounting. Therefore, gains and losses from derivative operations are fully recognized in the statements of income, as disclosed in Note 26.

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4.1.2 Classification

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

                                                             Note                       12/31/2023                  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Assets                                                                                                            
  Amortized cost                                                                                                    
  Cash and cash equivalents                                     5        9,018,818                       8,345,871  
  Marketable securities                                         6                                                   
  Trade accounts receivable                                     7        9,132,