apresentação do powerpoint · 2020. 3. 27. · start up: 3q17 in mucuri and 4q17 in imperatriz...

1

Inst i tut ional

Presentation1Q17

Disclaimer

The statements in this presentation constitute forward-looking statements. Such

statements are subject to known and unknown risks and uncertainties that could cause

the Company’s actual results to differ materially from those set forth in the forward-

looking statements. These risks include changes in customer demand for the Company’s

products, changes in raw material costs, seasonal fluctuations in customer orders, pricing

actions by competitors, significant changes in the applicable rates of exchange of the

Brazilian real against the US dollar, and general changes in the economic environment in

Brazil, emerging markets or internationally.

1. Overview

2. Industry

3. Competitiveness

4. Strategy

5. Operating and Financial Highlights

Agenda

3

1. Overview

4

Suzano

Data from 03/31/2017

¹ SUZB5: R$13.26 | 2 Last twelve months ended on 03/31/2017 | 3 Excluding Fluff

With over 90 years of operations, the Company produces pulp and paper products

Pulp

Market Pulp

Eucafluff

Market Cap¹ R$ 14.7 billion

Total Forest Base 1.2 million ha

Market Pulp Capacity³ 3.5 million tonnes

Paper Capacity 1.3 million tonnes

Adjusted EBITDA² R$ 3,484 million

Net Debt R$ 9,747 million

Net Debt/EBITDA 2.8x

65%35%

61%39%

Exports

Domestic

Pulp

Paper

Net

Revenues²

R$ 9.4bn

PaperPrinting & Writing(Coated and Uncoated)

Paperboard

¹ Flexibility to produce either Fluff or Printing and Writing paper | ² Tissue start up: Mucuri in 3Q17, Imperatriz in 4Q17 | ³Lignin start up in 2018

Production CapacitySuzano is the second largest eucalyptus pulp producer and the 4th largest

market pulp producer in the world.

Suzano has also a leading position in the Paperboard and Printing & Writing

segments in Brazil.

Pulp Paper

IntegratedMarket

PulpFluff

Printing &

WritingPaperboard Tissue²

Imperatriz

Mucuri

Limeira

Suzano

Rio Verde

-

200

300

460

-

1,500

1,540

350

70

-

-

-

-

100¹

-

-

250

390

360¹

50

-

-

-

200

-

60

60

-

-

-

Unit Capacity

(‘000 ton)Lignin³

Other

-

-

20

-

-

Total 960 3,460 100 1,050 200 120 20

Robust Asset Base Competitiveness

1,155 k ha

of total area

575 k ha

of planted area

Commercial Presence

Suzano’s forestry competitiveness allows its operation in different regions with adequate yields

Total Area1: 691k ha

Planted Area2: 253k ha

Average Structural Distance: 184 km

States of Maranhão, Pará, Tocantins and Piauí

Forest Assets

Port

Distribution Center

Commercial Office




States of Bahia, Espírito Santo and Minas Gerais




State of São Paulo

Forest Areas

1

2

3

¹ Consider own and leased area | ² Consider own, leased and third-partise areas

15 states in Brazil:• 8 Regional Commercial Offices• 4 Regional Distribution Centers• 16 Local Distribution CentersPlus commercial offices in USA, China, UK, Switzerland and Argentina.

Cerflor

45

Imperatriz (State of Maranhão)

Mucuri (State of Bahia)

Rio Verde (State of São Paulo)

Suzano (State of São Paulo)

Limeira (State of São Paulo)

1

2

3

4

5

Production Plants

Corporate GovernanceMembers of the Board are well-known in the Brazilian Corporate landscape and are

supported by the committees on the decision making

Board of Directors

Sustainability

and Strategy

Committee

Audit CommitteeManagement

Committee

Nine members,

five

independent

David Feffer President Dependent

Claudio Thomaz Lobo Sonder Vice President Dependent

Daniel Feffer Vice President Dependent

Jorge Feffer Board Member Dependent

Antonio de Souza Corrêa Meyer Board Member Independent

Marco Antonio Bologna Board Member Independent

Maria Priscilla Rodini Vanzetti Machado Board Member Independent

Nildemar Secches Board Member Independent

Rodrigo Kede de Freitas Lima Board Member Independent

Shareholder Structure and

Stock PerformanceBNDES

7%

Other

23%

Treasury

2%

Controlling

Shareholders

56%

Free Float

42%

Mondrian

7%

Daily Financial Volume

SUZB5 (R$ million)

15.827

11.441 11.077

1Q16 4Q16 1Q17

95

50 52

1Q16 4Q16 1Q17

Daily Trade Numbers

SUZB5

Source: Bloomberg

The Company’s stock is listed on the Level 1 corporate

governance segment and is a component of the Ibovespa

and IBrX-50

GIC

5%

Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

Ibovespa

+ 30%

IBrX-50

+28%

SUZB5

+7%

Stock Performance- SUZB5

Base 100: (Mar/16 – Mar/17)

67% Foreign / 33% National

2. Industry

10

11

Pulp IndustryPulp Market is driven by paper consumption

Total Fiber

Consumption1

RecycledVirgin Fiber

Non-wood,

Mechanical Pulp

and Integrated

Pulp

Market Pulp

421

241181

119 62

Fiber Consumption(million tonnes)

Paper Consumption by Region(%)

North

America

19%

Europe

23%

Asia

45%

Latin

America

7%Other

6%

1 Excludes Dissolving Pulp and Fluff

Source: Poyry (2015), Hawkins Wright (Apr/2017) and internal analysis

Paper Demand

4

0

2

1

3

-3

-1

-2

20 40 60 80 100

Share on total fiber consumption in 2014 (%)

Newsprint

Uncoated

Mechanical

Coated

Mechanical

Uncoated

Woodfree

Coated

Woodfree

Tissue

Containerboard

Paperboard

Packaging

Other

Est

imate

d d

em

an

d g

row

th u

nti

l 2

03

0

(%p

.a.)

Average

growth of

1.0% p.a.

Estimated

paper demand:

490MM/ton in

2030

Demand for pulp driven by tissue and

paperboard consumption

Source: Poyry (2015)

3. Competitiveness

13

Cash Cost CIF / Europe(US$/tonne)

FX of R$3.12/US$

Source: Hawkins Wright (Apr/17)

Pulp CompetitivenessSeven year cycle of the eucalyptus forest in Brazil and higher productivity ensures

lower costs

400

0

800In

do

nes

ia

Ch

ile/U

rugu

ay

Bel

/Fra

nce

Oth

er A

sia

East

Eu

rop

eSw

eden

Iber

ia

Bra

zil

Fin

lan

d

Can

ada

Ch

ile

East

Can

ada

Jap

an

Int.

Wes

t C

anad

a

US

Jap

an

Oth

er E

uro

pe

Ch

ina

Oth

er W

orl

d

Co

asta

l BC

US

Fin

lan

d

East

Eu

rop

e

Swed

en

Hardwood Softwood

Pulp Competitiveness

Fiber volume(million tonnes)

Source: Hawkins Wright (Apr/17)

1 Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp

The competitiveness of the eucalyptus fiber leads to the growth

compared to other fibers

1213

16 15 16 1617

19 2021 22 22 23 24

25

11 119 10

11 11 11 10 10 10 10 10 10 10 10

22 21 21 22 23 23 24 24 24 25 25 26 26 26 26

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e

BEKP¹ Other BHKP² BSKP³

CAGRBEKP: +6,5% p.a. | Other BHKP: -1,6% p.a.

CAGRBEKP: +3,3% p.a. | Other BHKP: +0,1% pay.

Paper Competitiveness

Suzano is an integrated paper

producer, which leads to a higher

contribution margin per ton

Leadership

position in

Printing & Writing

Segment

Leadership

position in

Paperboard

Segment

Paper Margin

Inputs and

Variable Costs

Integrated Pulp

Margin

Pulp Cost

Paper Market is

less volatile

Federal Taxes CompetitivenessSuzano's assets leads to a fiscal situation which allows low cash disbursement for income and social contribution taxes

Tax Benefits

75% of income tax reduction:

• Maranhão unit until 2024

• Bahia unit: Line 1 until 2024 | Line 2 until 2018

Tax Credits

Tax loss carry forward: R$2.7 billion

Total of federal tax credits to be used: R$242 million

Data accumulated until 03/31/2017

4. Strategy

18

Strategy to maximize the return on invested capital

Structural Competitiveness

Adjacent Business

Reshaping of the Industry

o Anticipated return

improvement as result of

cost reduction initiatives

coupled with disciplined

investments to achieve

optimal cost

o Investment in retrofitting

and debottlenecking should

reduce cash costs per ton by

21% by 2022

o Investments in adjacent

businesses such as

FuturaGene (biotech), Fluff,

Lignin and Tissue, leveraging

on Company’s current

capabilities, to improve

margins by offering high-

value added products

o Transformational changes in

the industry should lead to

higher returns

o Suzano uniquely positioned

to have an active role with

its vertically integrated

operation, stablished

commercial relationships

and consolidation capacity,

among other opportunities

ForestryAverage distance

reduction and

Standardization

and insourcing

harvesting

IndustryStructural

efficiency through

retrofitting and

debottlenecking

Logistics

Integrated

logistics with

synergy gains



Maximize the

return on

assets and cash

generation

Commercial

Price discipline

and expansion of

client base

(Suzano Mais)

605570

475

1Q17² 2018¹ 2021-2022¹

Debottlenecking and Average Forest Distance Reduction

Cash Cost (R$/ton)

Target

¹ 2016 Nominal Value | ² LTM: Last Twelve Months ending in 03/31/2017

o Monetization of ICMS

Credits

o Production of jumbo

rolls and final products

o First genetically

modified clone

approved by CTNBio

for commercial

purposes

o Potential to increase

productivity by nearly

20%

o Replacement of

petroleum-based

chemicals

Tissue

Adjacent

Businesses

Fluff FuturaGene

o First company in the

world to produce fluff

from hardwood

o Flexibility to produce

either fluff or printing

and writing paper

AdjacentBusiness

Lignin

Tissue

Modern and integrated mills in Imperatriz and Mucuri

Production capacity of 60k tonnes in each unit

Start up: 3Q17 in Mucuri and 4Q17 in Imperatriz

Production of jumbo rolls and final products

34,9 36,1 49,2

2015 2016e 2025e

Global Demand(Million tonnes)

1,2 1,2

1,9

2015 2016e 2025e

Brazilian Demand(Million tonnes)

Competitiveness on production and logistics adds value to pulp

Integrated production and

control of more than 90% of cash cost

Operational

Production close to the North and

Northeast markets in Brazil

Logistic

Fastest growing

segment in Brazil,

5% p.a. in 2015

(RISI)

Market

Potential

Structural solution for monetization of ICMS credits

Tax Strategy

AdjacentBusiness

Source: RISI

Demand(million tonnes)

5,8 6,0

6,9

2015 2016e 2020e

Diapers

38%Incontinence

Products

26%

Femine Hygiene

Products

24%

Other

12%

Products Breakdown (%)

Suzano is the first Company in the world to produce fluff from hardwood

AdjacentBusiness

Eucafluff

Source: RISI

o Up to 70% softwood substitution for feminine

hygiene products and up to 30% for diapers

o Rewet quality and reduction of energy costs

o Capacity: up to 100 k tonnes/year

Replacement of petroleum-based chemicals from

renewable source

Main applications:

• Cement Additives

• Phenolic Resins

• Rubber Components

Lignin

AdjacentBusiness

Capacity: 20k tonnes per year

Capex: R$70 million

Start Up: 2018

Mill: Limeira

Lignin Production Process

Fiber

Lignin

Wood Wood

ChipsBleaching

Pulp/

Paper

Digester

Evaporation

Recovery

BoilerLime Kiln

Lignin

Chemicals

Energy

Black Liquor

AdjacentBusiness

FuturaGeneFirst genetically modified clone approved by CTNBio for commercial

purposes

Less Land

Utilization

Lower Forest

Formation Cost

Biotechnology is on the right side

of Sustainability

• Less chemical expenditure

• Higher carbon sequestration

Reshaping of theIndustry

Transformation changes in the industry should lead to higher returns

Suzano is

strengthening its

balance sheet to be

an active player in

the reshaping of the

industry

Consolidation

Verticalization

Internationalization

5. Operational and Financial Highlights

27

912 935 874

3.473 3.435

1Q16 4Q16 1Q17 2016 LTM

Pulp Production (‘000 tonnes)

906 957 915

3.530 3.540

1Q16 4Q16 1Q17 2016 LTM

Pulp Sales (‘000 tonnes)

Others

1%

P&W

17%

Packaging

9%

Specialties

12%

Tissue

61%

Brazil

11%

Asia

43%

Europe

30%

North America

14%

South/Central

America

1%

Pulp Revenue BreakdownLTM 1Q17

Pulp Sales Volume per Segment1Q17

Pulp Segment

LTM: Last Twelve Month ending in 03/31/2017

Cash Cost (R$/ton)

Pulp Segment

642623

605585 570

475

2015 2016 LTM 1Q17 1Q17 2018¹ 2021-2022¹

Cash Cost Target

¹ 2016 Nominal Value | LTM: Last Twelve Month ending in 03/31/2017

Pulp EBITDA (R$/ton)

1.053

678 723778

693

1Q16 4Q16 1Q17 2016 LTM 1Q17

Operational Cash Flow (R$/ton)

700

440521 506

461

1Q16 4Q16 1Q17 2016 LTM 1Q17

Paper Sales (‘000 tonnes)

88 91 84 362 358 186 226 180

833 828

274 317 265

1.196 1.186

1Q16 4Q16 1Q17 2016 LTM

Exports Brazil

Brazil

72%

Asia

1%Europe

4%

North America

7%

South/Central

America

15%Other

1%

Paper Revenue BreakdownLTM 1Q17

Paper Segment

297 295 274

1.182 1.160

1Q16 4Q16 1Q17 2016 LTM

Paper Production (‘000 tonnes)


31

Paper Segment

Paper EBITDA (R$/ton)

1.150

796702

970869

1Q16 4Q16 1Q17 2016 LTM 1Q17

Operational Cash Flow (R$/ton)

977

613546

803

706

1Q16 4Q16 1Q17 2016 LTM 1Q17


1. Receita, CPV, SG&A – Consolidado

SG&A (RS/ton) COGS (R$/ton)

170 175 180 177 179

1Q16 4Q16 1Q17 2016 LTM

2.708 2.498 2.254

9.882 9.428

1Q16 4Q16 1Q17 2016 LTM

Revenue (R$ million)

1.350 1.368 1.3281.391 1.385

1Q16 4Q16 1Q17 2016 LTM

+5.9%

Inflation: +4.6%

Consolidated Results

+1.1%

+1.0%

-1.6% -0.4%

Inflation: +4.6% +1.0%


902 615 622

2.748 2.467

1Q16 4Q16 1Q17 2016 LTM

Operating Cash Flow¹ (R$ thousand)

ROIC (%)

14,7%11,9%

10,6%

LTM 1Q16 LTM 4Q16 LTM 1Q17

¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex | LTM: Last Twelve Month ending in 03/31/2017

Adjusted EBITDA (R$ million)

696680 675655

Avg R$/US$ 3.493.14 3.303.29

Avg Europe FOEX

517571 521506 Avg China FOEX

Consolidated Results

762

3.91

554

1.269 902 847

3.906 3.484

1Q16 4Q16 1Q17 2016 LTM

46,9%36,1% 37,6% 39,5% 37,0%

Net Debt (R$ and US$ billion) and Leverage (x)

Net Debt (R$) Net Debt (US$)

Net Debt/Adjusted EBITDA (R$) Net Debt/Adjusted EBITDA (US$)

3,7x3,1x 2,9x

2,3x 2,3x 2,3x

2,4x 2,7x 2,9x

2,9x

4,1x 3,9x3,3x 3,0x 2,7x

2,3x

2,1x 2,4x2,6x

2,8x

10,1 11,4 11,0

12,7 12,5 11,2

10,2 10,0 10,3 9,7

3,8 3,6 3,5 3,2 3,2 3,2 3,2 3,1 3,2 3,1

Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17

DebtLeverage at an

adequate level

Debt ProfileCompetitive debt profile and

cost of debt

Amortization (R$ billion)

Gross Debt: R$13.8 billion

Net Debt / Adjusted EBITDA: 2.8x

Average debt maturity of 62 months

Average Cost of Debt: 4.9% p.a.

Bond

33%

Certificates of

Agribusiness

Receivables

19%

BNDES

10%

Import Financing

8%

Other

15%

Export

Financing

28%

Instruments Exposure

539 441 1.491 1.447 922 2.484 2.654

3.259

600

697 1.055 1.836

158 31

4.069

1.041

2.187 2.502

2.758 2.642 2.685

Cash 9M17 2018 2019 2020 2021 2022

onward

4,9x3,6x 3,4x 3,6x

2,8x

Klabin¹ Arauco² CMPC² Fibria¹ Suzano¹

Klabin Arauco CMPC Fibria Suzano

Standard & Poors BB+ BBB- BBB- BBB- BB+

Moody's - Baa3 Baa3 Ba1 Ba1

Fitch Ratings BB+ BBB BBB+ BBB- BB+

Net Debt /

Adjusted

EBITDA LTM

1 Last twelve months ending on 03/31/2017 in R$.

² Last twelve months ending on 12/31/2016 in US$.

BB+BB/ BB-

BB+/BB

BB+/BB+BBB-/BBB-BBB/BBB

BB+/BB+

BB /BB

2010 2012 2015 2017

Sovereign

S&P / Fitch

Suzano´s Ratings Evolution

Suzano is on track to achieve Investment Grade

Rating

1. Capex 2017/2018

Capital discipline

and capex

flexibility

1Q17 2017e

Sustaining


e Adjacent Businesses0.1

0.2

0.3

0.7

1.1

1.8

Capex (R$ billion)

Total

Major Projects in 2017:

Debottlenecking of Imperatriz (to be completed)

Tissue production (start up in 2H17)

1. Perspectivas 2017

Suzano in a better shapeCost Discipline

38

Financial Discipline

Products Portfolio

Industrial Cost Reduction: Retrofitting and

Debottlenecking

Wood Cost Reduction: Optimization of

forest base and average distance reduction

Robust Balance Sheet

Competitive cost of debt

Healthy level of leverage

Tax Incentive

Portfolio of products allows less

volatility

High value added products

Suzano Mais

Capital Discipline

Capex Flexibility

Projects on time on budget

Investor Relations

2017

www.suzano.com.br/[email protected]

apresentação do powerpoint · 2020. 3. 27. · start up: 3q17 in mucuri and 4q17 in imperatriz...

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