Company: SUZ
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001628280-25-020368
Chunk: 235

Company: Suzano S.A.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 19
Chunk 235
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 assumptions used in the measurement of the fair value of biological assets were as follow:

(i) Average cycle of forest formation between 6 7

(ii) Effective area of forest from the 3

(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 corresponds to the Weighted Average Cost of Capital (“ WACC”).

  F-59  

Table of Contents

The table below discloses the measurement of the premises adopted:

12/31/2024 12/31/2023
Useful productive planted area (hectare) 1,243,191 1,094,611
Mature assets (6 to 7 years) 191,737 144,942
Immature assets (1 to 5 years) 1,051,454 949,669
Average annual growth (IMA) - m 3 /hectare/year 37.62 37.92
Average gross sale price of eucalyptus - R$/m 3 101.38 96.04
Discount rate (post-tax) 8.80 8.80

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

The fair value adjustment justified by the combined variations of the indicators mentioned above resulted in a positive variation of R$ 1,431,530

                                              12/31/2024      12/31/2023  
  Physical changes and discount rate (1)         609,259       1,575,017  
  Price                                          822,271         414,814  
                                               1,431,530       1,989,831  

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

The Company manages the financial and climate risks related to its agricultural activities in a preventive manner. To reduce the risks arising