Company: SUZ
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001628280-25-020368
Chunk: 141

Company: Suzano S.A.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 8
Chunk 141
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 Brazilian Institute for Land Reform - INCRA, published a public notice informing that the reports issued by commissions created by INCRA concluded that approximately 43,000 hectares of land located in the northern state of Espírito Santo and the southern state of Bahia would have signs of traditionality that could lead to a possible titling of lands in favor of certain “ Quilombola´s communities”. From that total area, approximately 31,300 hectares could correspond to areas (lands) owned by the Company. There are Administrative Proceedings led by INCRA, that are still pending some procedural steps that could be contradicted by the Company, to identify and delimit areas and traditional territory. There is only one Administrative Proceedings concluded to date according to a Technical Report for Identification and Delimitation (RTID) prepared by INCRA. Such RTID indicates the delimitation of 3,507.4012 hectares in favor of the Community of Linharinho. As it was identified several irregularities in the mentioned RTID, Suzano filed an annulment action to nullify the administrative proceeding and the RTID.

Dividends

General

The Brazilian Corporation Law and our bylaws require that we distribute annually to our shareholders a mandatory minimum dividend, which we refer to as the mandatory dividend, equal to at least 25% of our net income after taxes, after certain deductions, including accumulated losses and any amounts allocated to employee and management participation, any amount allocated to our legal reserve, and any amount allocated to the contingency reserve and any amount written off in respect of the contingency reserve accumulated in previous fiscal years, in each case in accordance with Brazilian law.

In accordance with article 26 of our bylaws, the minimum mandatory dividend corresponds to the lower of: (i) 25% of the adjusted annual net profits, adjusted according with the Brazilian Corporate Law, and (ii) 10% of the Operating Cash Flow Generation in the relevant fiscal year. The Operating Cash Flow Generation (GCO) is calculated using the following formula: GCO = Adjusted EBITDA - Maintenance Capex, where “ GCO” means the consolidated Generation of Operational Cash of the Fiscal Year, expressed in national currency, “ EBITDA” means our net profit of the fiscal year expressed in national currency, before the income tax and social contribution on net income, financial income and expenses, depreciation, amortization and depletion. “ Adjusted EBITDA” means the EBITDA excluding items not recurrent and/or not cash and gains (losses