Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q3 2020 Earnings Presentation
11 slides from Suzano's earnings presentation, Oct 30, 2020
Slide 1: 3Q20 Earnings Conference Call
1 3Q20 Earnings Conference Call
Slide 2: Disclaimer
2 This presentation contains what are considered “forward - looking statements,” as defined in Section 27 A of the 1933 Securities Act and Section 21 E of the 1934 Securities Exchange Act, as amended . Some of these forward - looking statements are identified with words such as “believe,” “may,” “co
Slide 3: Consistent delivery of solid results amidst an adverse market scenario
Consistent delivery of solid results amidst an adverse market scenario HIGHLIGHTS Pulp : Paper 1 : Pulp inventory : stable vs. 2Q20 2.5 million tons 290 thousand tons Liquidity : Net Debt : Leverage 3 : US$2.4 billion US$12.2 billion 4.4x in US$ (5.1x in R$) 1 Excluding Consumer Goods. | 2 Operating
Slide 4: Paper and Packaging Business
4 286 239 266 1,073 0 100 200 300 400 500 600 3Q19 2Q20 3Q20 LTM 3Q20 Paper Production ('000 tons) 187 110 193 689 101 91 98 384 288 202 290 1,073 0 100 200 300 400 500 600 3Q19 2Q20 3Q20 LTM 3Q20 Paper Sales ('000 tons) Net Average P rice (R$/ton) Local Foreign Paper and Packaging Business Packagin
Slide 5: Pulp Business
5 Pulp Business Strong production and sales despite market conditions, seasonal factors and maintenance downtimes 2,549 2,778 2,527 11,080 0 1,000 2,000 3,000 4,000 5,000 6,000 3Q19 2Q20 3Q20 LTM 3Q20 526 471 458 2,090 2,536 2,465 465 2,249 0 500 1000 1500 2000 2500 0 500 1000 1500 2000 2500 3000 3Q
Slide 6: Pulp Business: long term competitiveness reinforced by wood cost reduction
654 631 596 599 600 500 550 600 650 700 750 800 3Q19 4Q19 1Q20 2Q20 3Q20 327 302 275 259 254 0 200 400 600 800 1,000 1,200 Pulp Business Long term competitiveness reinforced by wood cost structural reduction Pulp Cash Cost 3Q20 vs. 3Q19 (ex - downtimes - R$/ton) Pulp Cash Cost 3Q20 vs. 2 Q20 (ex - d
Slide 7: Financial Management: financial discipline and accelerated deleverage
1.7 0.7 0.6 0.2 0.8 2.2 1.5 1.6 6.9 0.3 0.5 0.2 0.1 0.2 0.4 0.3 0.9 0.7 1.0 2.3 1.7 2.0 7.2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Liquidity 2020 2021 2022 2023 2024 2025 2026 onward 7 Financial Management Financial discipline – accelerated deleverage and nominal USD net debt decline 94% of total debt Stan
Slide 8: Financial Management: operational hedging roll-overs
8 Financial Management Operational hedging roll - overs reaffirm policy effectiveness Portfolio renewal - Cash Flow Hedge (ZCC) 522 736 840 617 485 245 4.19 4.27 4.27 4.75 5.18 5.25 4.63 4.76 4.75 5.54 6.15 6.05 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Notional (USD MM) Put ( average ) Call ( average ) Effects
Slide 9: Financial Management: Monetizing ESG, cost of capital improvement
9 Financial Management Monetizing ESG – Cost of Capital improvement Repurchase Bonds 2024 - 2025 - 2026 US$690MM Liability Manageme nt Issuance Sustainability Linked Bond US$750MM Performance - Secondary Market 1 ° issuance on the Americas and 2 ° 1 ° issuance with Second Party Opinion Lowest YTM ev
Slide 10: Takeaways 3Q20
10 Takeaways 3Q20 Recurring structural efficiency gains reinforcing long term competitiveness Strong cash generation , resilient to adverse market scenarios V shaped recovery on Paper and Packaging, driven by seasonality and packaging demand Successful pulp business commercial strategy, keeping inve
Slide 11: Investor Relations
Investor Relations www.suzano.com.br/ir ir@suzano.com.br Q&A